PMI Estimates Substantial Fourth-Quarter Loss
On Monday mortgage insurer PMI Group estimated a significant fourth-quarter net loss from its financial guaranty segment, and reported a net loss of $236 million in its U.S. mortgage insurance operation for the same period. PMI earned $33 million from its financial guaranty segment, and $217.3 million from its U.S. mortgage business in the same period a year ago.
PMI, which sells insurance protecting mortgage lenders in the event of defaults, said it was facing challenging market conditions, particularly in the United States.
The insurer said its final results have been held up by missing financial data from bond insurer FGIC Corp that it said were necessary to calculate its 2007 results.
PMI is a part owner of FGIC along with several others, including private equity firms Blackstone Group LP, Cypress Group and CIVC Partners LP.
PMI's international operations reported a preliminary net loss of $10.1 million in the period, the insurer said, versus earnings of $61.5 million in the fourth quarter of 2006.
It expects to release fourth-quarter results on March 12, it said in a statement.
It said it was conducting an analysis to determine if its investment in FGIC was impaired at year-end 2007. FGIC, which has lost its top credit ratings, has told New York regulators it wants to split into two companies.
Published on March 4, 2008
Are you a retail Agent Looking for a Quote?