Combined U.S. Mortgage Insurance Companies Have Statutory Capital of $2.9
billion, Liquid Assets of $2.8 billion and Premium Income from $124 billion of
Insurance in Force
WALNUT CREEK, Calif., April 8, 2008 /PRNewswire-FirstCall/ -- The PMI
Group, Inc. (NYSE: PMI) ("PMI" or the "Company") today commented on its
financial strength following today's ratings announcement from Standard &
Poor's ("S&P") for the Company, PMI Mortgage Insurance Co, and other related
entities.
"PMI has significant financial resources to pay insurance claims on
defaulted loans, and we are a strong risk counterparty for our customers,"
said Steve Smith, Chairman and CEO of The PMI Group, Inc. "The private
mortgage insurance industry and PMI are going through challenging times as we
navigate the current U.S. housing market. PMI's capital position and the
resources we have available to pay claims have not been affected by S&P's
ratings decisions."
Smith continued, "Mortgage insurance is a stabilizing force in today's
uncertain housing, mortgage and credit markets. The mortgage insurance
industry and PMI are well positioned to meet the needs of borrowers and
lenders while continuing to pay claims arising from foreclosures."
The PMI Group, Inc.
The PMI Group, Inc. (NYSE: PMI), headquartered in Walnut Creek, CA,
provides innovative credit, capital, and risk transfer solutions that expand
homeownership and fund essential services for our customers and the
communities they serve around the world. Through its wholly and partially
owned subsidiaries, PMI offers residential mortgage insurance and credit
enhancement products, financial guaranty insurance, and financial guaranty
reinsurance. PMI has operations in Asia, Australia and New Zealand, Canada,
Europe, and the United States. For more information: http://www.pmigroup.com.
Cautionary Statement: Statements in this press release that are not
historical facts, or that relate to future plans, events or performance are
"forward-looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include our
beliefs with respect to our financial strength and claims-paying ability.
Readers are cautioned that forward-looking statements by their nature involve
risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future. Many factors could cause actual results and
developments to differ materially from those expressed or implied by forward-
looking statements. Such factors include, among others, national or regional
recessions, and further deterioration in the housing, mortgage and related
credit markets. In particular, declines in housing values and/or housing
demand, deterioration of borrower credit, higher unemployment rates, changes
in interest rates, higher levels of consumer credit, higher mortgage default
and claim rates, lower cure rates, higher claim sizes, the aging of our
mortgage insurance portfolios, adverse changes in liquidity in the capital
markets, the inability of loan servicers to process higher volumes of
delinquent loans, and the contraction of credit markets could negatively
affect our losses, loss reserves and paid claims. The ratings downgrades
announced by S&P, and/or future ratings downgrades, if any, will likely
negatively impact us in a variety of ways and could, in isolation or taken
together, materially negatively affect, among other things, our U.S. and
international business prospects and revenues, our ability to compete in the
U.S., Europe, Canada, Australia and Asia, our GSE eligibility status in the
U.S., the cost of and/or availability of financing, our consolidated financial
condition, and our results of operations and cash flows. Other risks and
uncertainties are discussed in our SEC filings, including our Annual Report
Form 10-K for the year ended December 31, 2007 (in Item 1A). We undertake no
obligation to update forward-looking statements.
SOURCE The PMI Group, Inc.
CONTACT:
Media,
Stephanie Corns
of The PMI Group, Inc.,
+1-925-658-6357,
or
Investors,
Bill Horning
of The PMI Group, Inc.,
+1-925-658-6193
Web site: http://www.pmigroup.com
