The PMI Group Inc. (PMI)
received a delisting notice from the New York Stock Exchange because the mortgage insurer's stock closed at less than $1 for 30 consecutive trading days.
The company has six months to regain compliance or be delisted.
The PMI Group's stock price traded as high as $50 in May 2007, before plummeting, as the insurer was bombarded with claims as the housing bubble burst. By the end of 2007, the company's stock was trading around $13.25 and has continued falling since.
The Walnut Creek, Calif.-based company reported a second-quarter loss
of $134.8 million, or 83 cents a share, as costs associated with claims continue to hurt results. The mortgage insurance unit reported a loss of $338.4 million for the three months ended June 30.
Earlier this month, The PMI Group said it may stop writing policies in several states because losses have sapped capital and led to an excessive risk-to-capital ratio.
Standard & Poor's recently downgraded
its rating on the company and analysts said "statutory insolvency is possible by the end of 2011 or in early 2012."
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