The PMI Group Inc., Walnut Creek, Calif., took the worst hit of the four mortgage and title insurance companies that reported third quarter earnings today, with a loss of $281 million.
Those results included a non-cash provision of $200.2 million as a result of an increase in the deferred tax asset valuation allowance.
For the same period one year ago, PMI had a $93 million loss.
Its U.S. mortgage insurance business had a net loss of $252 million in the third quarter due to an increase in the valuation allowance.
On the good news side, primary new insurance written for the period was $2 billion, up from $1.2 billion one year prior.
The mortgage insurance business was bad news for Old Republic International Corp., as the company posted an unexpected $39 million loss for the quarter.
The pre-tax operating loss for the MI segment went from $22 million in the second quarter to $94 million for the most recent period. For the third quarter 2009, the pre-tax loss was $78 billion.
ORI's title insurance business saw an increase in pre-tax operating income, from $4 million one year ago to $5.7 million for the third quarter.
The company also reported a pretax unrealized investment gain of $59 million for the quarter for its investments in MGIC and PMI. It has recaptured $83 million of the 2008 write-down on the investments.
Stewart Information Systems Corp., Houston had a $3 million net loss, an improvement over the $24 million net loss for the third quarter 2009. But it is still the only national title insurer operating at a loss.
That is because title losses are still elevated, but the good news, Malcolm S. Morris, chairman and co-CEO said, is fewer new claims are being reported and they are for smaller amounts.
First American Financial Corp., Santa Ana, Calif., had net income of $33 million, vs. $39 million last year, as pre-tax income for its title insurance operations fell $10 million to $60 million.
There was a 13% decline in orders closed, which was partially offset by an 8% increase in average higher revenue per order.
