Nov. 6, 2009 (PR Newswire) -- WALNUT CREEK, Calif., Nov. 6 /PRNewswire-FirstCall/ -- The PMI Group, Inc. (NYSE: PMI) (the "Company") today reported a loss from continuing operations for the third quarter of 2009 of $87.9 million, or $1.06 per basic and diluted(1) share, compared with a loss from continuing operations of $149.3 million, or $1.83 per basic and diluted(1) share, for the same period one year ago. The loss from continuing operations for the third quarter of 2009 was primarily driven by losses and loss adjustment expenses (LAE) in U.S. Mortgage Insurance Operations, decreases in U.S. Mortgage Insurance Operations' premiums earned and investment income, and the change of the fair value of certain holding company senior debt.

The PMI Group, Inc. Third Quarter Results
-----------------------------------------
Three Months Ended
September 30,
(Dollars in thousands, except per share
data)                                            2009          2008
---------------------------------------           ----          ----

Loss from continuing operations                $(87,920)    $(149,309)
Loss from discontinued operations, net of
income taxes*                                   (5,312)      (80,104)
-------      --------
Net loss                                       $(93,232)    $(229,413)
=========    ==========

Diluted loss from continuing operations per
share                                           $(1.06)       $(1.83)
Diluted loss from discontinued operations
per share                                        (0.07)        (0.98)
------        ------
Diluted net loss per share                       $(1.13)       $(2.81)
--------------------------                      =======       =======

* Includes the results of PMI Australia, PMI Asia and PMI Guaranty.

The PMI Group, Inc. 2009 Year-to-Date Results
---------------------------------------------
Nine Months Ended
September 30,
(Dollars in thousands, except per share
data)                                                2009          2008
---------------------------------------               ----          ----

Loss from continuing operations                   $(425,808)    $(706,195)
Loss from discontinued operations, net of
income taxes*                                       (5,335)      (43,468)
-------      --------
Net loss                                          $(431,143)    $(749,663)
==========    ==========

Diluted loss from continuing operations
per share                                           $(5.18)       $(8.68)
Diluted loss from discontinued operations
per share                                            (0.06)        (0.54)
------        ------
Diluted net loss per share                           $(5.24)       $(9.22)
--------------------------                          =======       =======

* Includes the results of PMI Australia, PMI Asia and PMI Guaranty.

Key Financial Information

--  Consolidated net premiums written for the third quarter and first nine
months of 2009 totaled $167.4 million and $521.9 million, respectively,
compared with $176.5 million and $591.4 million for the same period last
year.  The decreases were primarily due to lower levels of new insurance
written and higher refunded premiums from rescissions of insurance
previously written.
--  Consolidated losses and LAE, which includes paid claims, loss adjustment
expenses and additions to reserve for losses, for the third quarter and
first nine months of 2009 were $336.8 million and $1.2 billion,
respectively, compared with $382.7 million and $1.5 billion for the same
periods one year ago.  The decreases in the third quarter and first nine
months of 2009 compared with the same periods one year ago were
primarily due to reduced levels of reserve increases in the third
quarter of 2009 driven by the negotiated acceleration of certain claims
associated with modified pool insurance restructurings.
--  Consolidated reserve for losses and LAE, gross of reinsurance
recoverables, totaled $3.2 billion as of September 30, 2009 compared
with $3.2 billion as of June 30, 2009 and $2.5 billion as of September
30, 2008.  In the U.S. Mortgage Insurance Operations segment, ending
reserves for losses and LAE for primary insurance increased in the third
quarter of 2009 by $134.0 million to $2.7 billion.  The increase in
primary insurance reserves for losses and LAE was primarily due to
higher default inventories and higher average claim rates, partially
offset by lower average primary claim sizes and the continued effect
from rescission activity. Ending reserves for losses and LAE for pool
insurance decreased in the third quarter of 2009 by $181.1 to $421.2
million. The decrease in pool insurance loss reserves was due to the
restructuring of certain modified pool policies.
--  Consolidated other underwriting and operating expenses for the third
quarter and first nine months of 2009 were $34.6 million and $114.3
million, respectively, compared with $59.4 million and $160.0 million
from the same periods last year.  The decrease in other underwriting and
operating expenses in the third quarter of 2009 compared to the
corresponding period in 2008 was primarily due to a decrease in payroll
and related expenses.

--  International Operations had net income from continuing operations for
the third quarter and first nine months of 2009 of $27.4 million and
$20.7 million, respectively, compared with a loss from continuing
operations of $46.0 million and $56.8 million from the same periods last
year.  The increase in the third quarter of 2009 was primarily as a
result of PMI Europe's net income of $27.9 million as a result of a net
gain of $9.2 million from credit default swap transactions and a federal
income tax benefit related to refinements to the Company's tax estimates
in connection with the filing of the Company's 2008 tax return.

Capital and Liquidity Information at September 30, 2009

--  On a consolidated basis, The PMI Group, Inc. had available funds,
consisting of cash and cash equivalents and investments, of $3.7 billion
and total shareholders' equity of $1.0 billion.
--  PMI's holding company had available funds, consisting of cash and cash
equivalents and investments, of $64.4 million.
--  PMI Mortgage Insurance Co.