PMI Reports 4Q Loss in MI Ops

The PMI Group Inc., Walnut Creek, Calif., has provided preliminary fourth-quarter financial results for some business segments, including a loss in U.S. mortgage insurance operations, reporting that it is still unable to release final earnings because of delays in getting financial results from FGIC Corp., in which it owns a 42% stake. PMI chairman and chief executive Steve Smith said the company would work to "stabilize our investments in FGIC and RAM Re, but we will not be contributing any additional capital to these companies." PMI's U.S. mortgage insurance operations lost $236.0 million in the fourth quarter, compared with net income of $77.2 million a year earlier. The increase was attributed to higher losses and loss adjustment expenses stemming from greater defaults, claim rates, and average claim sizes. For the year, the segment lost $190.8 million, compared with net income of $290.3 million in 2006. The international operations segment lost $10.1 million in the fourth quarter as a result of a $29.6 million loss in PMI Europe stemming from increases in loss and loss adjustment expenses and mark-to-market losses associated with credit default swap derivative contracts. PMI plans to release its results on March 12.