PMI Losses Narrow to $222.6m in Q209
Walnut Creek, Calif-based PMI Group (PMI) reported a $222.6m net loss in Q209, or $2.71 per share. The residential mortgage insurance provider narrowed its losses from a year earlier, improving from a $246.3m net loss in Q208. US mortgage insurance operations continue to suffer heavy losses and decreased premium earnings. That, along with a $25.4m after-tax charge from an increase in the market value of certain holding company senior debt instruments, drove the second-quarter losses, the company said. PMI wrote $169.7m in consolidated net premiums in Q209, down from $202.2m in Q208. The first half 2009 (H109) total of $354.6m was also down from the H108 total of $414.9m. The decreases were due to lower levels of new insurance written and higher refunded premiums from rescinded -- or canceled -- insurance. PMI said the reduction in new insurance written and refunds from canceled insurance dropped premiums earnings from $207.4m in Q208 to $181.6m in Q209 and from the H108 total of $418.5m to $369.7m in H109. Write to Austin Kilgore.