PMI Postpones Q4 Results on FGIC Earnings Delay
The PMI Group said late Wednesday that it will postpone the release of its fourth quarter earnings due to delays in obtaining fourth quarter 2007 financial results from FGIC Corporation. The insurer said results for its mortgage insurance operations were complete, but that it could not release its full results without FGIC's financials. No date for a rescheduled earnings release was set. PMI, along with private equity firms Blackstone Group LP, Cypress Group and CIVC Partners LP, is one of the owners of troubled bond insurer FGIC. The monoline recently has been seeking a split-up of its municipal bond and structured credit insurance businesses. PMI's insurance operations likely posted a loss for the fourth quarter, according to most analysts. Recently, the company said it would alter its underwriting criteria to require at least 3 percent down on any new mortgages it insures, a move expected to push down new insurance issued down dramatically during 2008 as the company looks to manage an extended downturn in the U.S. housing market. 32 percent of primary new insurance written in 2007 at PMI was for loans with an LTV above 97 percent. For more information, visit http://www.pmigroup.com.