PMI GROUP INC - FORM 8-K - EX-99.2 - THE PMI GROUP, INC. FIRST QUARTER 2010 FINANCIAL SUPPLEMENT.

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EX-99.1 - THE PMI GROUP, INC. PRESS RELEASE DATED APRIL 25, 2010. - PMI GROUP INC	dex991.htm
8-K - FORM 8-K - PMI GROUP INC	d8k.htm

Exhibit 99.2

LOGO

The PMI Group, Inc.

First Quarter 2010

Financial Supplement

THE PMI GROUP, INC. AND SUBSIDIARIES

FINANCIAL RESULTS AND STATISTICAL INFORMATION FOR THE PERIOD ENDED MARCH 31, 2010


Table of Contents		Page

Notes to Financial Results and Statistical Information		3

Consolidated Results

Consolidated Statements of Operations		4

Consolidated Balance Sheets		5

Business Segments Results of Operations - Three Months Ended March 31, 2010 and 2009		6

Business Segments Balance Sheets		7

U.S. Mortgage Insurance Operations Segment Results

U.S. Mortgage Insurance Operations Segment Results of Operations and Balance Sheets		8

U.S. Mortgage Insurance Operations Portfolio Characteristics		9-11

U.S. Mortgage Insurance Operations Default Information		12

U.S. Mortgage Insurance Operations Analysis of Loss Reserves		13

CMG Mortgage Insurance Company Statistical Information		14

International Mortgage Insurance Operations Segment Results

International Operations Segment Results of Operations and Balance Sheets		15

PMI Europe Quarterly Financial Information		16

PMI Europe Statistical Information		17

Corporate and Other Segment Results

Corporate and Other Segment Results of Operations and Balance Sheets		18

Page 2

THE PMI GROUP, INC. AND SUBSIDIARIES

FINANCIAL RESULTS AND STATISTICAL INFORMATION FOR THE PERIOD ENDED MARCH 31, 2010

Notes to Financial Results and Statistical Information:

⁽¹⁾

Effective January 1, 2008, The PMI Group, Inc. (the “Company”) adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820 Fair Value Measurements and Disclosures, previously SFAS No. 157, and the fair value option outlined in FASB ASC Topic 825 Financial Instruments, previously SFAS No. 159. The Company elected to adopt the fair value option for certain corporate debt on the adoption date. The Company’s net loss included a $40.8 million loss and $18.5 million gain for the three months ended March 31, 2010 and 2009, respectively, related to fair value adjustments for these debt instruments.

⁽²⁾

For the three months ended March 31, 2010, the Company’s equity in losses from unconsolidated subsidiaries include CMG Mortgage Insurance Company, CMG Mortgage Reinsurance Company and CMG Mortgage Assurance Company (collectively, “CMG MI”) and certain limited partnership interests. For the three months ended March 31, 2009, the Company’s equity in losses from unconsolidated subsidiaries include CMG Mortgage Insurance Company, CMG Mortgage Reinsurance Company and CMG Mortgage Assurance Company (collectively, “CMG MI”), RAM Re and certain limited partnership interests.

⁽³⁾	Due to the net losses in the quarters ended March 31, 2010 and 2009, normally dilutive components of shares outstanding such as stock options were not included in fully diluted shares outstanding as their inclusion would have been anti-dilutive.

⁽⁴⁾

U.S. Mortgage Insurance Operations segment includes the operating results of PMI Mortgage Insurance Co., PMI Mortgage Assurance Co. (“PMAC”), formerly Commercial Loan Insurance Co., WMAC Insurance Corporation (“WMAC”) and affiliated U.S. mortgage insurance and reinsurance companies (collectively, “PMI”). CMG Mortgage Insurance Company and its affiliates are accounted for under the equity method of accounting and their operating results are in equity in earnings from unconsolidated subsidiaries. Effective January 1, 2010, PMAC was merged into the U.S. Mortgage Insurance Operations segment.

⁽⁵⁾	International Operations segment includes PMI Europe and PMI Canada as continuing operations and results from PMI Australia and PMI Asia which are reported as discontinued operations for all periods presented due to their sale in 2008.

⁽⁶⁾

Effective December 31, 2009, the Company combined its Corporate and Other and Financial Guaranty segments into Corporate and Other segment for all periods presented. For the three months ended March 31, 2010, the Corporate and Other segment includes other income and related operating expenses of PMI Mortgage Services Co.’s investment income, change in fair value of certain debt instruments, interest expense, intercompany eliminations and corporate expenses of the Company; equity in earnings (losses) from certain limited partnerships and our equity investments in FGIC and RAM Re. For the twelve months and year ended December 31, 2009 the Corporate and Other segment includes other income and related operating expenses of PMI Mortgage Services Co.’s investment income, change in fair value of certain debt instruments, interest expense, intercompany eliminations and corporate expenses of the Company; the results of WMAC, equity in earnings (losses) from certain limited partnerships and our equity investments in FGIC and RAM Re. PMI Guaranty Co.’s (“PMI Guaranty”) operating results are reported as discontinued operations for all periods presented. The Company merged PMI Guaranty into its U.S. Mortgage Insurance Operations during the fourth quarter of 2008.

⁽⁷⁾

The loss ratio is expressed as a ratio of losses and loss adjustment expenses (“LAE”) from continuing operations to premiums earned from continuing operations. The expense ratio is expressed as a ratio of the sum of amortization of deferred policy acquisition costs and other underwriting and operating expenses from continuing operations to net premiums written from continuing operations.

⁽⁸⁾

Pool insurance includes modified pool, GSE pool, old pool and all other pool insurance products for U.S. Mortgage Insurance Operations. As of June 30, 2008, we adjusted pool risk in force to appropriately reflect the effect of loan repayments on risk limits. Further beginning March 31, 2009, pool risk in force has been adjusted to reflect reserves established on pool which has the effect of reducing the risk layer.

⁽⁹⁾	Loss severity is, for a given period, initial claims paid as a percentage of the total risk in force of loans for which claims were paid. Initial claims paid does not include supplemental and other payments.

⁽¹⁰⁾	PMI’s persistency rate was calculated based upon the percentage of primary insurance in force at the beginning of a 12-month period that remains in force at the end of that period.

⁽¹¹⁾	The statutory risk-to-capital ratio is for PMI Mortgage Insurance Co. only. As of March 31, 2009, the Company adjusted its statutory risk-to-capital ratio based on recent regulatory clarification to exclude risk in force for which a loss reserve has been established.

⁽¹²⁾	The excess minimum policyholders' position is the surplus above the required minimum policyholders position. The excess minimum policyholders position is for PMI Mortgage Insurance Co. only.

⁽¹³⁾	As of data, such as insurance in force, risk in force, policy in force and loans in default, are the same as the recent period end in the total column.

⁽¹⁴⁾	As of September 30, 2009, the Company reclassified ceded claims paid from pool claims paid to primary claims paid and is now included in 'Ceded claims, supplemental and other' for all periods presented. The calculation of average claim size excludes recovered amounts from captive trust accounts.

Note:

The interim financial and statistical information contained in this material is unaudited. Certain prior periods' information has been reclassified to conform to the current periods' presentation.

The PMI Group, Inc.’s Investor Relations contacts:


Bill Horning		Kosta Karmaniolas, CFA
Vice President, Investor Relations and Corporate Capital Management and Analysis		Director, Investor Relations and Corporate Capital Management and Analysis
(925) 658-6193		(925) 658-6137

Page 3

THE PMI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three Months Ended March 31,
	2010			2009
	(Unaudited)
	(Dollars and shares in thousands, except per share data)
Net premiums written	$	160,076		$	184,846

Revenues
Premiums earned	$	161,565		$	188,094
Net gain from credit default swaps		1,718			7,756
Net investment income		26,688			34,605
Net realized investment gains (losses)		7,433			(6,051	)
Change in fair value of certain debt instruments ⁽¹⁾		(40,813	)		18,476
Other income		6			2,184

Total revenues		156,597			245,064

Losses and expenses
Losses and loss adjustment expenses		350,825			382,947
Amortization of deferred policy acquisition costs		3,876			3,345
Other underwriting and operating expenses		33,859			40,021
Interest expense		9,523			11,852

Total losses and expenses		398,083			438,165

Loss before equity in losses from unconsolidated subsidiaries and income taxes		(241,486	)		(193,101	)
Equity in losses from unconsolidated subsidiaries ⁽²⁾		(4,410	)		(2,446	)

Loss from continuing operations before income taxes		(245,896	)		(195,547	)
Income tax benefit from continuing operations		(88,909	)		(80,286	)

Loss from continuing operations		(156,987	)		(115,261	)
Loss from discontinued operations, net of taxes		—			(30	)

Net loss	$	(156,987	)	$	(115,291	)

Diluted loss from continuing operations per share	$	(1.90	)	$	(1.41	)
Diluted income from discontinued operations per share		—			—

Diluted net loss per share	$	(1.90	)	$	(1.41	)

Share data:
Basic weighted average common shares outstanding		82,776			81,895
Stock options and other dilutive components ⁽³⁾		—			—

Diluted weighted average common shares outstanding ⁽³⁾		82,776			81,895

Page 4

THE PMI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	March 31, 2010		December 31, 2009		March 31, 2009
	(Unaudited)		(Audited)		(Unaudited)
	(Dollars and shares in thousands, except per share data)
Assets
Investments:
Fixed income securities	$	2,092,834	$	2,355,188	$	2,132,614
Equity securities:
Common		32,128		29,090		3,303
Preferred		172,776		186,023		158,994
Short term investments		1,632		2,232		2,284

Total investments	$	2,299,370	$	2,572,533	$	2,297,195
Cash and cash equivalents		859,131		686,891		1,328,269
Investments in unconsolidated subsidiaries		135,241		139,775		149,816
Reinsurance recoverables		666,298		703,550		549,369
Deferred policy acquisition costs		42,642		41,289		39,061
Property, equipment and software, net of accumulated depreciation and amortization		97,105		101,893		120,941
Other assets		511,279		395,586		411,274

Total assets	$	4,611,066	$	4,641,517	$	4,895,925

Liabilities
Reserve for losses and loss adjustment expenses	$	3,290,593	$	3,250,100	$	2,915,862
Unearned premiums		69,866		72,089		111,018
Debt		424,570		389,991		457,054
Other liabilities		248,610		202,250		248,978

Total liabilities		4,033,639		3,914,430		3,732,912
Shareholders’ equity
Common stock		1,193		1,193		1,193
Additional paid-in capital, treasury stock and retained earnings		504,490		660,486		1,199,463
Accumulated other comprehensive income (loss), net of deferred taxes		71,744		65,408		(37,643	)

Total shareholders’ equity		577,427		727,087		1,163,013

Total liabilities and shareholders’ equity	$	4,611,066	$	4,641,517	$	4,895,925

Basic shares issued and outstanding		83,006		82,580		82,147

Book value per share	$	6.96	$	8.80	$	14.16

Page 5

THE PMI GROUP, INC. AND SUBSIDIARIES

BUSINESS SEGMENTS RESULTS OF OPERATIONS - THREE MONTHS ENDED MARCH 31, 2010 AND 2009


	U.S. Mortgage Insurance Operations ⁽⁴⁾			International Operations ⁽⁵⁾			Corporate and Other ⁽⁶⁾			Consolidated Total
	Three Months Ended March 31, 2010 (Unaudited)
	*(Dollars in thousands)*
Net premiums written	$	159,473		$	603		$	—		$	160,076

Revenues
Premiums earned	$	160,163		$	1,402		$	—		$	161,565
Net gain from credit default swaps		—			1,718			—			1,718
Net investment income		25,033			1,525			130			26,688
Net realized investment gains		7,170			263			—			7,433
Change in fair value of certain debt instruments ⁽¹⁾		—			—			(40,813	)		(40,813	)
Other income		—			6			—			6

Total revenues (expenses)		192,366			4,914			(40,683	)		156,597

Losses and expenses
Losses and loss adjustment expenses		350,073			752			—			350,825
Amortization of deferred policy acquisition costs		3,876			—			—			3,876
Other underwriting and operating expenses		30,036			1,800			2,023			33,859
Interest expense		74			—			9,449			9,523

Total losses and expenses		384,059			2,552			11,472			398,083

(Loss) income before equity in losses from unconsolidated subsidiaries and income taxes		(191,693	)		2,362			(52,155	)		(241,486	)
Equity in losses from unconsolidated subsidiaries ⁽²⁾		(4,289	)		—			(121	)		(4,410	)

(Loss) income from continuing operations before income taxes		(195,982	)		2,362			(52,276	)		(245,896	)
Income tax (benefit) expense from continuing operations		(74,199	)		2,345			(17,055	)		(88,909	)

Net (loss) income	$	(121,783	)	$	17		$	(35,221	)	$	(156,987	)

Loss ratio ⁽⁷⁾		218.6	%
Expense ratio ⁽⁷⁾		21.3	%
Combined ratio		239.9	%

	Three Months Ended March 31, 2009 (Unaudited)
	*(Dollars in thousands)*
Net premiums written	$	184,295		$	546		$	5		$	184,846

Revenues
Premiums earned	$	185,614		$	2,472		$	8		$	188,094
Net gain from credit default swaps		—			7,756			—			7,756
Net investment income		27,770			4,860			1,975			34,605
Net realized investment losses		(4,268	)		(1,765	)		(18	)		(6,051	)
Change in fair value of certain debt instruments ⁽¹⁾		—			—			18,476			18,476
Other (loss) income		(50	)		(35	)		2,269			2,184

Total revenues		209,066			13,288			22,710			245,064

Losses and expenses
Losses and loss adjustment expenses		379,846			3,101			—			382,947
Amortization of deferred policy acquisition costs		3,025			320			—			3,345
Other underwriting and operating expenses		33,520			2,791			3,710			40,021
Interest expense		16			—			11,836			11,852

Total losses and expenses		416,407			6,212			15,546			438,165

(Loss) income before equity in losses from unconsolidated subsidiaries and income taxes		(207,341	)		7,076			7,164			(193,101	)
Equity in losses from unconsolidated subsidiaries ⁽²⁾		(2,294	)		—			(152	)		(2,446	)

(Loss) income from continuing operations before income taxes		(209,635	)		7,076			7,012			(195,547	)
Income tax (benefit) expense from continuing operations		(82,069	)		346			1,437			(80,286	)

(Loss) income from continuing operations		(127,566	)		6,730			5,575			(115,261	)

Loss from discontinued operations, net of taxes		—			(30	)		—			(30	)

Net (loss) income	$	(127,566	)	$	6,700		$	5,575		$	(115,291	)

Loss ratio ⁽⁷⁾		204.6	%
Expense ratio ⁽⁷⁾		19.8	%
Combined ratio		224.4	%

Page 6

THE PMI GROUP, INC. AND SUBSIDIARIES

BUSINESS SEGMENTS BALANCE SHEETS


	U.S. Mortgage Insurance Operations ⁽⁴⁾		International Operations ⁽⁵⁾		Corporate and Other ⁽⁶⁾			Consolidated Total
	March 31, 2010 (Unaudited)
	*(Dollars in thousands)*
Assets
Investments:
Fixed income securities	$	1,940,169	$	150,611	$	2,054		$	2,092,834
Equity securities:
Common		31,840		—		288			32,128
Preferred		172,776		—		—			172,776
Short term investments		1,610		22		—			1,632

Total investments	$	2,146,395	$	150,633	$	2,342		$	2,299,370
Cash and cash equivalents		772,382		35,793		50,956			859,131
Investments in unconsolidated subsidiaries		120,391		—		14,850			135,241
Reinsurance recoverables		666,298		—		—			666,298
Deferred policy acquisition costs		42,642		—		—			42,642
Property, equipment and software, net of accumulated depreciation and amortization		31,829		16		65,260			97,105
Other assets		427,987		12,636		70,656			511,279

Total assets	$	4,207,924	$	199,078	$	204,064		$	4,611,066

Liabilities
Reserve for losses and loss adjustment expenses	$	3,255,561	$	35,032	$	—		$	3,290,593
Unearned premiums		60,816		9,050		—			69,866
Debt		—		—		424,570			424,570
Other liabilities (assets)		223,909		35,588		(10,887	)		248,610

Total liabilities		3,540,286		79,670		413,683			4,033,639

Shareholders’ equity (deficit)		667,638		119,408		(209,619	)		577,427

Total liabilities and shareholders’ equity	$	4,207,924	$	199,078	$	204,064		$	4,611,066


	December 31, 2009 (Audited)
	*(Dollars in thousands)*
Assets
Investments:
Fixed income securities	$	2,195,750	$	143,599	$	15,839		$	2,355,188
Equity securities:
Common		29,090		—		—			29,090
Preferred		186,023		—		—			186,023
Short term investments		999		23		1,210			2,232

Total investments	$	2,411,862	$	143,622		17,049		$	2,572,533
Cash and cash equivalents		567,821		47,353		71,717			686,891
Investments in unconsolidated subsidiaries		124,826		—		14,949			139,775
Reinsurance recoverables		703,550		—		—			703,550
Deferred policy acquisition costs		41,289		—		—			41,289
Property, equipment and software, net of accumulated depreciation and amortization		35,606		27		66,260			101,893
Other assets		323,521		11,755		60,310			395,586

Total assets	$	4,208,475	$	202,757	$	230,285		$	4,641,517

Liabilities
Reserve for losses and loss adjustment expenses	$	3,213,735	$	36,365	$	—		$	3,250,100
Unearned premiums		61,758		10,328		3			72,089
Debt		—		—		389,991			389,991
Other liabilities (assets)		172,070		38,483		(8,303	)		202,250

Total liabilities		3,447,563		85,176		381,691			3,914,430

Shareholders’ equity (deficit)		760,912		117,581		(151,406	)		727,087

Total liabilities and shareholders’ equity	$	4,208,475	$	202,757	$	230,285		$	4,641,517

Page 7

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS SEGMENT ⁽⁴⁾ RESULTS OF OPERATIONS AND BALANCE SHEETS


	2010			2009
	3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009			Total
	*(Dollars in thousands)*
Income Statement Components - Quarter Ended
Revenues
Premiums written:
Gross premiums written	$	212,931		$	217,476		$	224,242		$	232,033		$	245,759		$	919,510
Ceded and refunded premiums, net of assumed premiums		(53,458	)		(54,052	)		(56,799	)		(61,813	)		(61,464	)		(234,128	)

Net premiums written		159,473			163,424			167,443			170,220			184,295			685,382
Change in unearned premiums		690			5,187			6,094			7,958			1,319			20,558

Premiums earned	$	160,163		$	168,611		$	173,537		$	178,178		$	185,614		$	705,940
Net investment income		25,033			27,553			26,478			28,929			27,770			110,730
Net realized investment gains (losses)		7,170			9,004			11,828			23,663			(4,268	)		40,227
Other (loss) income		—			(1	)		1			12			(50	)		(38	)

Total revenues		192,366			205,167			211,844			230,782			209,066			856,859

Losses and expenses
Losses and loss adjustment expenses		350,073			549,423			334,593			476,829			379,846			1,740,691
Amortization of deferred policy acquisition costs		3,876			4,944			3,837			3,432			3,025			15,238
Other underwriting and operating expenses		30,036			31,359			30,437			32,781			33,520			128,097
Interest expense		74			11			12			16			16			55

Total losses and expenses		384,059			585,737			368,879			513,058			416,407			1,884,081

Loss before equity in losses from unconsolidated subsidiaries and income taxes		(191,693	)		(380,570	)		(157,035	)		(282,276	)		(207,341	)		(1,027,222	)
Equity in losses from unconsolidated subsidiaries		(4,289	)		(3,669	)		(4,268	)		(1,221	)		(2,294	)		(11,452	)

Loss before income taxes		(195,982	)		(384,239	)		(161,303	)		(283,497	)		(209,635	)		(1,038,674	)
Income tax benefit		(74,199	)		(142,254	)		(50,683	)		(107,720	)		(82,069	)		(382,726	)

Net loss	$	(121,783	)	$	(241,985	)	$	(110,620	)	$	(175,777	)	$	(127,566	)	$	(655,948	)

Loss ratio ⁽⁷⁾		218.6	%		325.9	%		192.8	%		267.6	%		204.6	%		246.6	%
Expense ratio ⁽⁷⁾		21.3	%		22.2	%		20.5	%		21.3	%		19.8	%		20.9	%
Combined ratio		239.9	%		348.1	%		213.3	%		288.9	%		224.4	%		267.5	%


	3/31/2010		12/31/2009		9/30/2009		6/30/2009		3/31/2009
	*(Dollars in thousands)*
Balance Sheet Components - As of Quarter End
Assets
Investments:
Fixed income securities	$	1,940,169	$	2,195,750	$	2,441,616	$	2,044,222	$	1,917,378
Equity securities:
Common		31,840		29,090		21,822		11,679		3,303
Preferred		172,776		186,023		186,733		177,762		158,994
Short term investments		1,610		999		999		996		981

Total investments	$	2,146,395	$	2,411,862	$	2,651,170	$	2,234,659	$	2,080,656
Cash and cash equivalents		772,382		567,821		698,833		1,075,108		1,058,306
Investments in unconsolidated subsidiaries		120,391		124,826		132,025		132,271		134,646
Reinsurance recoverables		666,298		703,550		659,356		602,318		549,369
Deferred policy acquisition costs		42,642		41,289		40,677		38,895		37,034
Property, equipment and software, net of accumulated depreciation and amortization		31,829		35,606		40,567		45,535		51,191
Other assets		427,987		323,521		292,943		355,703		362,424

Total assets	$	4,207,924	$	4,208,475	$	4,515,571	$	4,484,489	$	4,273,626

Liabilities
Reserve for losses and loss adjustment expenses	$	3,255,561	$	3,213,735	$	3,138,261	$	3,185,488	$	2,854,797
Unearned premiums		60,816		61,758		67,286		73,786		86,480
Other liabilities		223,909		172,070		277,730		166,532		206,623

Total liabilities		3,540,286		3,447,563		3,483,277		3,425,806		3,147,900

Shareholders’ equity		667,638		760,912		1,032,294		1,058,683		1,125,726

Total liabilities and shareholders’ equity	$	4,207,924	$	4,208,475	$	4,515,571	$	4,484,489	$	4,273,626

Page 8

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS PORTFOLIO CHARACTERISTICS ⁽¹⁾


	2010			2009
	3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009			Total
	*(Dollars in millions)*
New Insurance Written
Flow insurance written	$	964		$	969		$	1,176		$	2,001		$	4,847		$	8,993
Structured insurance written		—			—			—			—			1			1

Primary new insurance written	$	964		$	969		$	1,176		$	2,001		$	4,848		$	8,994

Primary new risk written	$	214		$	207		$	253		$	426		$	1,034		$	1,920
Pool new insurance written ⁽⁸⁾	$	—		$	—		$	—		$	—		$	—		$	—
Pool new risk written ⁽⁸⁾	$	—		$	—		$	—		$	—		$	—		$	—
Product mix as a % of primary new insurance written:
High LTV (above 97% LTV’s)		0	%		0	%		0	%		0	%		0	%		0	%
95.01% to 97% LTV’s		0	%		0	%		0	%		0	%		1	%		1	%
90.01% to 95% LTV’s		26	%		27	%		29	%		29	%		30	%		29	%
85.01% to 90% LTV’s		55	%		56	%		54	%		51	%		48	%		50	%
85% and below		19	%		17	%		17	%		20	%		21	%		20	%
Less than A quality loans		0	%		0	%		0	%		0	%		0	%		0	%
Alt-A loans		0	%		0	%		0	%		0	%		0	%		0	%
Interest only loans		0	%		0	%		0	%		0	%		0	%		0	%
Payment option ARMS		0	%		0	%		0	%		0	%		0	%		0	%
ARMs		0	%		0	%		0	%		0	%		0	%		0	%
Monthlies		84	%		87	%		88	%		89	%		89	%		88	%
Refinances		33	%		24	%		29	%		49	%		54	%		46	%
Structured transactions		0	%		0	%		0	%		0	%		0	%		0	%
Captive reinsurance arrangements
Percentage of flow NIW subject to captive reinsurance arrangements		0.0	%		0.0	%		0.2	%		0.7	%		4.7	%		2.7	%
Percentage of primary NIW subject to captive reinsurance arrangements		0.0	%		0.0	%		0.2	%		0.7	%		4.7	%		2.7	%
Percentage of primary IIF subject to captive reinsurance arrangements		45.6	%		45.9	%		46.5	%		46.9	%		47.5	%		45.9	%
Percentage of primary RIF subject to captive reinsurance arrangements		46.6	%		46.9	%		47.5	%		47.8	%		48.3	%		46.9	%

Page 9

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS PORTFOLIO CHARACTERISTICS ⁽²⁾


	2010			2009
	3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009
				*(Dollars in millions, except loan size)*
Primary Insurance and Risk in Force
Primary insurance in force
Flow	$	95,539		$	98,135		$	100,745		$	103,367		$	106,352
Structured transactions		14,731			15,559			16,187			16,852			17,545

Total	$	110,270		$	113,694		$	116,932		$	120,219		$	123,897

Primary risk in force
Flow	$	23,510		$	24,138		$	24,794		$	25,458		$	26,237
Structured transactions		3,447			3,656			3,805			3,963			4,129

Total	$	26,957		$	27,794		$	28,599		$	29,421		$	30,366

Pool risk in force ⁽⁸⁾	$	884		$	1,073		$	1,292		$	1,579		$	1,869
Primary risk in force - credit score distribution
Flow
620 or above		94.4	%		94.4	%		94.4	%		94.3	%		94.3	%
619-575		4.4	%		4.4	%		4.4	%		4.5	%		4.5	%
574 or below		1.2	%		1.2	%		1.2	%		1.2	%		1.2	%
Structured transactions
620 or above		85.2	%		85.7	%		85.8	%		85.9	%		86.0	%
619-575		9.3	%		9.0	%		9.0	%		8.9	%		8.8	%
574 or below		5.5	%		5.3	%		5.2	%		5.2	%		5.2	%
Total
620 or above		93.3	%		93.3	%		93.2	%		93.1	%		93.1	%
619-575		5.0	%		5.0	%		5.0	%		5.1	%		5.1	%
574 or below		1.7	%		1.7	%		1.8	%		1.8	%		1.8	%
Primary average loan size (in thousands)
Flow	$	161.6		$	161.9		$	161.9		$	161.8		$	161.6
Structured transactions	$	158.7		$	156.9		$	157.5		$	158.1		$	158.9
Total	$	161.2		$	161.2		$	161.3		$	161.2		$	161.2
Loss severity ⁽⁹⁾ - primary (quarterly)
Flow		85.4	%		94.2	%		94.2	%		75.7	%		83.6	%
Structured transactions		60.0	%		89.1	%		87.9	%		63.9	%		85.9	%
Total		77.4	%		93.0	%		92.7	%		72.2	%		84.3	%
Persistency ⁽¹⁰⁾
Primary persistency rate		84.9	%		84.3	%		83.8	%		82.3	%		82.5	%
Risk-to-capital ratio ⁽¹¹⁾		26.6 to 1^(A	⁾		22.1 to 1			16.9 to 1			19.6 to 1			18.7 to 1
Minimum policyholders’ position ⁽¹²⁾ (deficit) excess	$	(57.4)^(A	⁾	$	63.9		$	307.2		$	185.3		$	246.6

(A)	Preliminary

Page 10

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS PORTFOLIO CHARACTERISTICS ⁽³⁾


	3/31/2010					12/31/2009					3/31/2009
	Primary Risk in Force			Percent of Total		Primary Risk in Force			Percent of Total		Primary Risk in Force			Percent of Total
	*(In millions)*					*(In millions)*					*(In millions)*
Policy Year As a Percentage of Primary Risk in Force (RIF)
Prior to 2000	$	403		1.5	%	$	502		1.8	%	$	582		1.9	%
2000		97		0.4	%		105		0.4	%		117		0.4	%
2001		336		1.2	%		359		1.3	%		418		1.4	%
2002		732		2.7	%		773		2.8	%		912		3.0	%
2003		2,019		7.5	%		2,119		7.6	%		2,461		8.1	%
2004		2,236		8.3	%		2,321		8.4	%		2,645		8.7	%
2005		3,326		12.3	%		3,448		12.4	%		3,880		12.8	%
2006		4,174		15.5	%		4,374		15.7	%		4,963		16.3	%
2007		7,567		28.1	%		7,787		28.0	%		8,694		28.6	%
2008		4,064		15.1	%		4,183		15.0	%		4,670		15.4	%
2009		1,791		6.6	%		1,823		6.6	%		1,024		3.4	%
2010		212		0.8	%		—		0.0	%		—		0.0	%

Total	$	26,957				$	27,794				$	30,366


	3/31/2010					12/31/2009					3/31/2009
	% of Primary RIF			Primary Default Rate		% of Primary RIF			Primary Default Rate		% of Primary RIF			Primary Default Rate
Top 10 States as a Percentage of Primary Risk in Force,
(Ranking based on 3/31/10 RIF)
Florida		10.1	%	41.6	%		10.1	%	41.1	%		10.1	%	31.3	%
California		7.6	%	36.5	%		7.7	%	36.7	%		7.8	%	28.5	%
Texas		7.6	%	12.4	%		7.5	%	13.0	%		7.3	%	8.9	%
Illinois		5.2	%	25.7	%		5.2	%	25.0	%		5.2	%	16.5	%
Georgia		4.7	%	23.2	%		4.7	%	23.2	%		4.7	%	15.7	%
New York		4.0	%	19.5	%		4.0	%	18.5	%		3.9	%	12.3	%
Ohio		3.9	%	17.7	%		3.9	%	18.0	%		3.8	%	13.7	%
Pennsylvania		3.4	%	15.3	%		3.4	%	15.5	%		3.4	%	11.0	%
New Jersey		3.3	%	25.2	%		3.3	%	24.1	%		3.2	%	16.2	%
Washington		3.2	%	17.2	%		3.2	%	16.5	%		3.2	%	9.9	%


	2010		2009
	3/31/2010		12/31/2009		9/30/2009		6/30/2009		3/31/2009
As a Percentage of Primary Risk in Force - loan to value ratios
High LTV (above 97% LTV’s)	20.4	%	20.4	%	20.5	%	20.6	%	20.8	%
95.01% to 97% LTV’s	4.0	%	4.0	%	4.1	%	4.1	%	4.1	%
90.01% to 95% LTV’s	30.5	%	30.5	%	30.4	%	30.3	%	30.2	%
85.01% to 90% LTV’s	38.1	%	38.1	%	38.0	%	37.9	%	37.8	%
85% and below	7.0	%	7.0	%	7.0	%	7.1	%	7.1	%

As a Percentage of Primary Risk in Force:
Less-than-A quality (FICO scores below 620)	6.7	%	6.8	%	6.8	%	6.8	%	6.9	%
Less-than-A quality (FICO scores below 575) ^(A)	1.7	%	1.7	%	1.8	%	1.8	%	1.8	%
Alt-A Loans:
With FICO scores of 660 and above	14.6	%	14.8	%	15.0	%	15.3	%	15.7	%
With FICO scores below 660 and above 619	2.2	%	2.2	%	2.3	%	2.3	%	2.3	%

Total Alt-A Loans	16.8	%	17.0	%	17.3	%	17.6	%	18.0	%
ARMs ^(B)	9.1	%	9.3	%	9.5	%	9.7	%	9.9	%
Interest Only ^(C)	10.8	%	10.9	%	11.0	%	11.1	%	11.3	%
Payment Option ARMs	3.0	%	3.1	%	3.1	%	3.2	%	3.3	%

(A)	Less-than-A quality loans with FICO scores below 575 is a subset of PMI's less-than-A quality loan portfolio.

(B)	Approximately 0.6% and 0.1% of RIF are subject to initial payment adjustment in 2009 and 2010, respectively.

(C)	Approximately 95.5% and 50.0% of interest only loans written in 2009 and 2010, respectively, have an initial deferral period of 5 years or greater.

Page 11

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS DEFAULT INFORMATION


	2010			2009
	3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009			Total (13)
				*(Dollars in millions, except claim size)*
Primary loans, defaults and default rates
Primary policies in force		683,888			705,417			725,029			745,551			768,441			705,417
Primary loans in default		147,248			150,925			141,261			126,431			117,503			150,925
Primary default rate		21.53	%		21.40	%		19.48	%		16.96	%		15.29	%		21.40	%
Flow only default rate		20.41	%		20.18	%		18.26	%		15.81	%		14.14	%		20.18	%
Structured transactions only default rate		28.64	%		28.80	%		26.87	%		23.83	%		22.16	%		28.80	%
Pool default rate		16.46	%		22.30	%		20.86	%		19.46	%		17.69	%		22.30	%
Primary default rates by loan type
Alt-A loans		43.85	%		43.92	%		41.28	%		37.52	%		34.79	%		43.92	%
Less than A quality loans		38.86	%		40.78	%		37.96	%		33.61	%		30.94	%		40.78	%
Above 97s		28.07	%		28.71	%		26.03	%		22.36	%		19.85	%		28.71	%
ARMs (excluding 2/28 Hybrid ARMs)		42.33	%		42.96	%		40.50	%		37.32	%		35.09	%		42.96	%
2/28 Hybrid ARMs		51.32	%		54.29	%		52.87	%		50.41	%		49.95	%		54.29	%
Payment option ARMs		53.71	%		53.09	%		50.75	%		47.01	%		43.78	%		53.09	%
Interest Only		44.30	%		43.82	%		40.78	%		36.49	%		33.41	%		43.82	%
Primary Delinquent Roll Forward
Beginning delinquent inventory		150,925			141,261			126,431			117,503			109,580			109,580
Plus: New notices		34,268			37,835			41,359			38,007			43,307			160,508
Less: Cures		(29,565	)		(20,775	)		(20,390	)		(22,100	)		(28,697	)		(91,962	)
Less: Paids ^(A)		(6,892	)		(5,924	)		(4,192	)		(4,888	)		(4,429	)		(19,433	)
Less: Rescissions		(1,488	)		(1,472	)		(1,947	)		(2,091	)		(2,258	)		(7,768	)
Ending delinquent inventory		147,248			150,925			141,261			126,431			117,503			150,925
Claims paid
Primary claims paid - flow	$	226.2		$	204.6		$	144.6		$	129.8		$	136.7		$	615.7
Primary claims paid - structured transactions		74.2			61.9			43.7			47.3			65.3			218.2
Ceded claims, supplemental and other ⁽¹⁴⁾		(64.0	)		(56.2	)		(29.8	)		(21.8	)		(21.3	)		(129.1	)

Total primary claims paid		236.4			210.3			158.5			155.3			180.7			704.8
Total pool and other		21.4			293.5			268.8			31.0			25.9			619.2

Total claims paid		257.8			503.8			427.3			186.3			206.6			1,324.0
Loss adjustment expenses		13.2			14.3			11.6			12.8			9.6			48.3

Total claims paid including loss adjustment expenses	$	271.0		$	518.1		$	438.9		$	199.1		$	216.2		$	1,372.3
Average primary claim size (in thousands)	$	34.3		$	36.1		$	37.8		$	31.8		$	40.8		$	36.4

(A)	Claims paid are net of claim reversals and reinstatements.

Page 12

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS ANALYSIS OF LOSS RESERVES


	2010			2009
	3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009
	*(Dollars in millions)*
Loss Reserve Analysis
Beginning reserves for losses and LAE,	$	3,213.7		$	3,138.3		$	3,185.5		$	2,854.8		$	2,624.5
Reinsurance recoverables		(703.6	)		(659.4	)		(602.3	)		(549.4	)		(482.7	)

Net balance at beginning of the period		2,510.1			2,478.9			2,583.2			2,305.4			2,141.8
Loss and LAE incurred (principally with respect to defaults occurring in):
Current year		291.0			432.8			375.2			374.1			370.6
Prior years		59.1			116.6			(40.6	)		102.7			9.2

Total incurred		350.1			549.4			334.6			476.8			379.8
Loss and LAE payments (principally with respect to defaults occurring in):
Current year		(3.3	)		(180.9	)		(121.2	)		(4.3	)		(2.6	)
Prior years		(267.6	)		(337.3	)		(317.7	)		(194.7	)		(213.6	)

Total payments		(270.9	)		(518.2	)		(438.9	)		(199.0	)		(216.2	)
Net ending balance		2,589.3			2,510.1			2,478.9			2,583.2			2,305.4
Reinsurance recoverables ^(A)		666.3			703.6			659.4			602.3			549.4

Ending reserves for losses and LAE	$	3,255.6		$	3,213.7		$	3,138.3		$	3,185.5		$	2,854.8


	3/31/2010			12/31/2009			12/31/2008			12/31/2007
	*(Dollars in thousands)*
Loss Reserves by Book Year
2002 and prior	$	134,792		$	135,572		$	137,136		$	117,987
2003		148,989			144,066			118,672			87,713
2004		210,246			194,421			166,420			119,017
2005		469,236			450,343			406,224			238,077
2006		817,561			850,322			774,871			345,918
2007		1,209,226			1,214,096			928,065			224,368
2008		259,131			220,657			93,116			—
2009		6,380			4,258			—			—

Total Loss Reserves	$	3,255,561		$	3,213,735		$	2,624,504		$	1,133,080


	3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009
	Loans in Default	Reserve for Losses and LAE		Loans in Default	Reserve for Losses and LAE		Loans in Default	Reserve for Losses and LAE		Loans in Default	Reserve for Losses and LAE		Loans in Default	Reserve for Losses and LAE
	*(Dollars in millions)*
Primary insurance	147,248	$	2,924.4	150,925	$	2,931.1	141,261	$	2,694.4	126,431	$	2,560.4	117,503	$	2,445.2
Pool insurance ⁽⁸⁾ ^(B)	25,336		310.4	51,104		261.8	52,158		421.2	57,121		602.3	53,807		386.7
Surety ^(C)	—		20.8	—		20.8	—		22.7	—		22.8	—		22.9

Total	172,584	$	3,255.6	202,029	$	3,213.7	193,419	$	3,138.3	183,552	$	3,185.5	171,310	$	2,854.8

(A)	Reinsurance recoverables includes captive reinsurance agreements and other reinsurance recoverables.

(B)	Pool insurance excludes 32 contracts representing 26,103 delinquencies associated with restructurings resulting in the termination of $212.9 million risk in force in the first quarter of 2010.

(C)	Reserve for losses and LAE relates to loss reserves on PMI Guaranty’s surety business with FGIC which was commuted and merged into the Company’s U.S. Mortgage Insurance Operations in the fourth quarter of 2008.

Page 13

THE PMI GROUP, INC. AND SUBSIDIARIES

CMG MORTGAGE INSURANCE COMPANY STATISTICAL INFORMATION


	2010			2009
	3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009			Total ⁽¹³⁾
	(Dollars in millions, except claims paid and claim size)
Primary new insurance written	$	304		$	321		$	489		$	1,052		$	1,630		$	3,492
Primary insurance in force	$	21,578		$	21,952		$	22,315		$	22,645		$	22,665		$	21,952
Primary risk in force	$	5,263		$	5,350		$	5,444		$	5,533		$	5,569		$	5,350
Policies in force		133,886			136,519			139,073			141,448			142,541			136,519
Primary loans in default		7,168			7,315			6,479			5,550			4,480			7,315
Primary default rate		5.35	%		5.36	%		4.66	%		3.92	%		3.14	%		5.36	%
Persistency		85.6	%		83.9	%		83.9	%		84.1	%		84.7	%		83.9	%
Primary claims paid (in thousands)	$	20,463		$	16,036		$	15,159		$	12,857		$	10,703		$	54,755
Number of primary claims paid		470			384			345			294			235			1,258
Average primary claim size (in thousands)	$	43.5		$	41.8		$	43.9		$	43.7		$	45.5		$	43.5

Page 14

THE PMI GROUP, INC. AND SUBSIDIARIES

INTERNATIONAL OPERATIONS SEGMENT ⁽⁵⁾ RESULTS OF OPERATIONS AND BALANCE SHEETS


	2010		2009
	3/31/2010		12/31/2009			9/30/2009			6/30/2009			3/31/2009			Total
	*(U.S. dollars in thousands)*
Income Statement Components - Quarter Ended
Net premiums written	$	603	$	(7,298	)	$	(80	)	$	(496	)	$	546		$	(7,328	)

Revenues
Premiums earned	$	1,402	$	1,962		$	3,031		$	3,415		$	2,472		$	10,880
Net gains from credit default swaps		1,718		7,574			9,248			7,003			7,756			31,581
Net investment income (loss)		1,525		1,603			(849	)		(540	)		4,860			5,074
Net realized investment gains (losses)		263		(795	)		94			(271	)		(1,765	)		(2,737	)
Other income (loss)		6		1			7			14			(35	)		(13	)

Total revenues		4,914		10,345			11,531			9,621			13,288			44,785

Losses and expenses
Losses and loss adjustment expenses		752		6,766			2,185			4,012			3,101			16,064
Amortization of deferred policy acquisition costs		—		1,588			314			321			320			2,543
Other underwriting and operating expenses		1,800		2,308			2,073			3,909			2,791			11,081

Total losses and expenses		2,552		10,662			4,572			8,242			6,212			29,688

Income (loss) from continuing operations before income taxes		2,362		(317	)		6,959			1,379			7,076			15,097
Income tax expense (benefit) from continuing operations		2,345		2,609			(20,431	)		14,831			346			(2,645	)

Income (loss) from continuing operations		17		(2,926	)		27,390			(13,452	)		6,730			17,742
(Loss) gain on sale from discontinued operations, net of taxes		—		—			(5,312	)		7			(30	)		(5,335	)

Net income (loss)	$	17	$	(2,926	)	$	22,078		$	(13,445	)	$	6,700		$	12,407

Loss ratio, expense ratio and combined ratio for the International Operations segment are not meaningful due to the sale of PMI Australia and PMI Asia, which were classified as discontinued operations.


	3/31/2010		12/31/2009		9/30/2009		6/30/2009			3/31/2009
	*(U.S. dollars in thousands)*
Balance Sheet Components - As of Quarter End
Assets
Investments:
Fixed income and equity securities	$	150,633	$	143,622	$	145,628	$	124,312		$	97,521
Cash and cash equivalents		35,793		47,353		75,941		103,065			134,011
Deferred policy acquisition costs		—		—		1,589		1,823			2,027
Property, equipment and software, net of accumulated depreciation and amortization		16		27		38		52			688
Other assets (liabilities)		12,636		11,755		12,405		(4,298	)		10,620

Total assets	$	199,078	$	202,757	$	235,601	$	224,954		$	244,867

Liabilities
Reserve for losses and loss adjustment expenses	$	35,032	$	36,365	$	36,766	$	49,884		$	61,065
Unearned premiums		9,050		10,328		19,797		21,946			24,522
Other liabilities		35,588		38,483		58,908		64,217			64,623

Total liabilities		79,670		85,176		115,471		136,047			150,210

Shareholders’ equity		119,408		117,581		120,130		88,907			94,657

Total liabilities and shareholders’ equity	$	199,078	$	202,757	$	235,601	$	224,954		$	244,867

Page 15

THE PMI GROUP, INC. AND SUBSIDIARIES

PMI EUROPE QUARTERLY FINANCIAL INFORMATION


	2010		2009
	3/31/2010		12/31/2009			9/30/2009			6/30/2009			3/31/2009			Total
	*(U.S. dollars in thousands, unless otherwise noted)*
Income Statement Components - Quarter Ended
Net premiums written	$	603	$	(7,268	)	$	(80	)	$	(496	)	$	546		$	(7,298	)

Revenues
Premiums earned	$	1,270	$	1,765		$	2,904		$	3,262		$	2,373		$	10,304
Net gains from credit default swaps		1,718		7,574			9,248			7,003			7,756			31,581
Net investment income (loss)		1,428		1,359			(758	)		(375	)		4,673			4,899
Net realized investment gains (losses)		415		(560	)		100			66			(1,314	)		(1,708	)

Total revenues		4,831		10,138			11,494			9,956			13,488			45,076

Losses and expenses
Losses and loss adjustment expenses		439		5,429			1,950			3,814			2,943			14,136
Amortization of deferred policy acquisition costs		—		1,409			279			283			298			2,269
Other underwriting and operating expenses		1,538		2,069			1,836			3,685			2,436			10,026

Total losses and expenses		1,977		8,907			4,065			7,782			5,677			26,431

Income before income taxes		2,854		1,231			7,429			2,174			7,811			18,645
Income tax expense (benefit)		2,345		2,608			(20,430	)		16,284			346			(1,192	)

Net income (loss)	$	509	$	(1,377	)	$	27,859		$	(14,110	)	$	7,465		$	19,837

Net income (loss) (Euros in thousands)	€	368	€	(1,295	)	€	20,494		€	(10,693	)	€	5,715		€	14,221

Loss ratio, expense ratio and combined ratio for PMI Europe are not meaningful.


	3/31/2010		12/31/2009		9/30/2009		6/30/2009			3/31/2009
	*(U.S. dollars in thousands)*
Balance Sheet Components - As of Quarter End
Assets
Investments:
Fixed income securities	$	132,829	$	129,355	$	131,439	$	110,107		$	96,586
Cash and cash equivalents		34,569		42,695		70,751		100,102			117,336
Deferred policy acquisition costs		—		—		1,412		1,627			1,811
Property, equipment and software, net of accumulated depreciation and amortization		16		27		38		52			688
Other assets (liabilities)		10,775		11,269		11,763		(8,462	)		10,581

Total assets	$	178,189	$	183,346	$	215,403	$	203,426		$	227,002

Liabilities
Reserve for losses and loss adjustment expenses	$	34,573	$	35,957	$	35,874	$	49,281		$	60,637
Unearned premiums		8,052		9,234		18,497		20,629			23,167
Other liabilities		33,677		36,820		58,584		61,981			64,220

Total liabilities		76,302		82,011		112,955		131,891			148,024

Shareholders’ equity		101,887		101,335		102,448		71,535			78,978

Total liabilities and shareholders’ equity	$	178,189	$	183,346	$	215,403	$	203,426		$	227,002

Page 16

THE PMI GROUP, INC. AND SUBSIDIARIES

PMI EUROPE STATISTICAL INFORMATION


	2010		2009
	3/31/2010		12/31/2009		9/30/2009		6/30/2009		3/31/2009		Total ⁽¹³⁾
	*(U.S. dollars in millions, except claims paid)*
New insurance written	$	—	$	—	$	—	$	—	$	—	$	—
New reinsurance written	$	—	$	—	$	—	$	—	$	—	$	—
Insurance in force	$	9,350	$	14,071	$	36,289	$	39,196	$	41,552	$	14,071
Risk in force	$	2,092	$	4,876	$	5,252	$	6,812	$	6,611	$	4,876
Claims paid including credit default swaps (in thousands)	$	2,474	$	4,023	$	18,675	$	19,676	$	23,570	$	65,944

Page 17

THE PMI GROUP, INC. AND SUBSIDIARIES

CORPORATE AND OTHER SEGMENT ⁽⁶⁾ RESULTS OF OPERATIONS AND BALANCE SHEETS


	2010			2009
	3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009			Total
				*(Dollars in thousands)*
Income Statement Components - Quarter Ended
Net premiums written	$	—		$	—		$	(1	)	$	—		$	5		$	4

Revenues
Premiums earned	$	—		$	2		$	4		$	7		$	8		$	21
Net investment income		130			309			351			727			1,975			3,362
Net realized investment losses		—			—			(1	)		—			(18	)		(19	)
Change in fair value of certain debt instruments ⁽¹⁾		(40,813	)		34,000			3,125			(39,079	)		18,476			16,522
Other income		—			—			5			105			2,269			2,379

Total (expenses) revenues		(40,683	)		34,311			3,484			(38,240	)		22,710			22,265

Losses and expenses
Other underwriting and operating expenses		2,023			7,202			2,059			3,062			3,710			16,033
Interest expense		9,449			10,081			9,326			11,715			11,836			42,958

Total losses and expenses		11,472			17,283			11,385			14,777			15,546			58,991

(Loss) income before equity in losses from unconsolidated subsidiaries and income taxes		(52,155	)		17,028			(7,901	)		(53,017	)		7,164			(36,726	)
Equity in losses from unconsolidated subsidiaries		(121	)		(135	)		(109	)		(171	)		(152	)		(567	)

(Loss) income before income taxes		(52,276	)		16,893			(8,010	)		(53,188	)		7,012			(37,293	)
Income tax (benefit) expense		(17,055	)		165			(3,320	)		(19,790	)		1,437			(21,508	)

Net (loss) income	$	(35,221	)	$	16,728		$	(4,690	)	$	(33,398	)	$	5,575		$	(15,785	)


	3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009
				*(Dollars in thousands)*
Balance Sheet Components - As of Quarter End
Assets
Investments:
Fixed income securities	$	2,054		$	15,839		$	16,053		$	15,606		$	117,718
Equity securities: common		288			—			—			—			—
Short term investments		—			1,210			1,210			1,300			1,300

Total investments	$	2,342		$	17,049		$	17,263		$	16,906		$	119,018
Cash and cash equivalents		50,956			71,717			69,491			86,798			135,952
Investments in unconsolidated subsidiaries		14,850			14,949			14,999			15,064			15,170
Property, equipment and software, net of accumulated depreciation and amortization		65,260			66,260			73,146			73,827			74,927
Other assets		70,656			60,310			12,891			44,282			32,365

Total assets	$	204,064		$	230,285		$	187,790		$	236,877		$	377,432

Liabilities
Unearned premiums	$	—		$	3		$	5		$	9		$	16
Debt		424,570			389,991			417,757			427,116			457,054
Other assets		(10,887	)		(8,303	)		(60,656	)		(22,651	)		(22,268	)

Total liabilities		413,683			381,691			357,106			404,474			434,802

Shareholders’ deficit		(209,619	)		(151,406	)		(169,316	)		(167,597	)		(57,370	)

Total liabilities and shareholders’ deficit	$	204,064		$	230,285		$	187,790		$	236,877		$	377,432

Page 18

PMI GROUP INC - FORM 8-K - EX-99.2 - THE PMI GROUP, INC. FIRST QUARTER 2010 FINANCIAL SUPPLEMENT. - April 26, 2010

Attached files

PMI GROUP INC Reports