(Source: PRNewswire-FirstCall)
WALNUT CREEK, Calif., Aug. 7 /PRNewswire-FirstCall/ -- The PMI Group, Inc. (the "Company") today reported a loss from continuing operations for the second quarter of 2009 of $222.6 million, or $2.71 per basic and diluted(1) share, compared with a loss from continuing operations of $251.0 million, or $3.09 per basic and diluted(1) share, for the same period one year ago. The loss from continuing operations for the second quarter of 2009 was primarily driven by U.S. Mortgage Insurance Operations' continued high losses and loss adjustment expenses (LAE), decreases in U.S. Mortgage Insurance Operations' premiums earned and a $25.4 million after-tax charge due to an increase in the fair market value of certain holding company senior debt instruments.
The PMI Group, Inc. Second Quarter Results Three Months Ended June 30, (Dollars in thousands, except per share data) 2009 2008 Loss from continuing operations $(222,627) $(250,970) Income from discontinued operations, net of income taxes* 7 4,684 --- ----- Net loss $(222,620) $(246,286) ========== ========== Diluted loss from continuing operations per share $(2.71) $(3.09) Diluted income from discontinued operations per share - 0.06 --- ---- Diluted net loss per share $(2.71) $(3.03) -------------------------- ======= ======= * Includes the results of PMI Australia, PMI Asia and PMI Guaranty. The PMI Group, Inc. 2009 Year-to-Date Results Six Months Ended June 30, (Dollars in thousands, except per share data) 2009 2008 -------------------------------------------- ---- ---- Loss from continuing operations $(337,888) $(556,886) (Loss) income from discontinued operations, net of income taxes* (23) 36,636 ---- ------ Net loss $(337,911) $(520,250) ========== ========== Diluted loss from continuing operations per share $(4.12) $(6.86) Diluted income from discontinued operations per share - 0.45 --- ---- Diluted net loss per share $(4.12) $(6.41) -------------------------- ======= ======= Selected Consolidated Continuing Operating Results
Consolidated net premiums written for the second quarter and first half of 2009 totaled $169.7 million and $354.6 million, respectively, compared with $202.2 million and $414.9 for the same periods one year ago. The decreases were due primarily to lower levels of new insurance written and higher refunded premiums from rescissions of insurance previously written.
Consolidated premiums earned for the second quarter and first half of 2009 were $181.6 million and $369.7, respectively, compared with $207.4 million and $418.5 million for the same periods one year ago. The decreases were due primarily to lower levels of new insurance written and premium refunds related to rescissions of insurance previously written, partially offset by higher persistency in the U.S. Mortgage Insurance Operations.
Consolidated losses and LAE, which includes paid claims, loss adjustment expenses and additions to reserve for losses, for the second quarter and first half of 2009 were $480.8 million and $863.8 million, respectively, compared with $556.1 million and $1.1 billion for the same periods one year ago. The decrease in the second quarter compared with the same period one year ago was primarily due to a lower net loss reserve increase of $277.8 million in U.S. Mortgage Insurance Operations, partially offset by higher paid claims in PMI Europe.
Consolidated reserve for losses and LAE totaled $3.2 billion as of June 30, 2009 compared with $2.9 billion as of March 31, 2009 and $2.2 billion as of June 30, 2008. Reserves for losses and LAE in the U.S. Mortgage Insurance Operations increased in the second quarter of 2009 by a gross amount of $330.7 million to $3.2 billion and was partially offset by a $52.9 million credit from reinsurance recoverables, primarily from captive reinsurance agreements. The increase in this quarter for reserves for losses and LAE was primarily due to higher default inventories and higher average claim rates and claim sizes in the U.S. Mortgage Insurance Operations' modified pool insurance portfolio, partially offset by lower average primary claim sizes and increased rescission activity.
Consolidated other underwriting and operating expenses for the second quarter and first half of 2009 were $39.8 million and $79.8 million, respectively, compared with $53.0 million and $100.6 million for the same periods one year ago. The decreases in other underwriting and operating expenses in the second quarter compared to the corresponding period in 2008 was primarily due to a decrease in payroll and related expenses offset by an increase in deferred compensation expenses in U.S. Mortgage Insurance Operations.
The PMI Group, Inc. Second Quarter Results by Segment Second Quarter (Loss) Income from Second Quarter Continuing Total Revenues Operations (Dollars in millions, except per share data) 2009 2008 2009 2008 ---------------------------- ---- ---- ---- ---- U.S.
