Mortgage Insurer PMI Posts Third-Quarter Loss
PMI Group Inc, the second-largest U.S. mortgage insurer, posted a quarterly loss, hurt by $348.3 million in losses and reserves for future losses at its U.S. mortgage insurance operations.
The company posted a net loss of $86.8 million, or $1.04 a share, for the third quarter, compared with net income of $104.2 million, or $1.16 a share, a year ago.
The loss per share was a penny better than analysts' average estimate and PMI's outlook of $1.05 per share loss.
Earlier in the month, PMI had said it expected total losses of about $350 million for the quarter for its U.S. mortgage insurance operations.
Total losses include paid claims, loss adjustment expenses and additions to the reserve for future losses.
PMI shares were trading down 3.5 percent at $17.93 in late morning trade on the New York Stock Exchange. Before Tuesday's losses, the shares have fallen about 64 percent since early February when they hit their 52-week high.
PMI said the U.S. mortgage insurance operations posted a net loss of $65.2 million for the third quarter. It recorded total losses of $348.3 million for the quarter, compared with $67.7 million in the year-ago quarter.
Total claims paid rose to $92.6 million from $62 million, driven by a rise in notices of default, increased claim rates and larger average claim sizes.
Published on October 31, 2007
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