(PMI) PMI Group Incorporated – Bear of the Day

PMI Group Inc.’s (PMI) second-quarter operating loss was worse than the Zacks Consensus Estimate and widened year over year as the company continued to suffer mortgage losses. We expect losses and loss adjustment expenses from mortgage insurance operations, increased valuation allowances, lower premiums earned and shrunken investment income will continue to pressure PMI’s earnings.

While increasing persistency levels will drive domestic growth, it will put additional pressure on capital. PMI Group is not able to sell new policies.

To add to its woes, Arizona-based PMI Mortgage Insurance Co., the main subsidiary, is short of funds, which is required to meet regulatory requirements in Arizona. As such, the State Insurance Department will likely bar it from selling new policies, which might result in either rehabilitation or liquidation of the unit.

PMI GROUP (PMI): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | Financial | Surety & Title Insurance

RSS feeds: PMI | PMI Group Inc. | Financial | Surety & Title Insurance |

Other Posts by | RSS Feed for this author