WALNUT CREEK, Calif., Dec. 22 /PRNewswire-FirstCall/ -- PMI Mortgage Insurance Co. today announced the restructuring of certain modified pool policies which resulted in positive statutory capital benefits to PMI. In connection with the restructuring, PMI paid the counterparty aggregate accelerated discounted claim payments of approximately $264 million (subject to certain adjustments). The positive impact that the restructurings had on PMI's loss reserves for the fourth quarter of 2009 resulted in an estimated aggregate statutory benefit to PMI of approximately $51 million.
About PMI Mortgage Insurance Co.
PMI Mortgage Insurance Co. , is headquartered in Walnut Creek, CA and provides credit enhancement solutions that expand homeownership while supporting our customers and the communities they serve. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products. For more information: http://www.pmi-us.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. 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:
-- our expectation that, as a result of continued losses, we will need to raise significant additional capital and/or achieve significant statutory capital relief; -- the risk that we may be unable to maintain minimum regulatory risk-to-capital and policyholders surplus requirements in Arizona and other states; -- there is no assurance that the Arizona Department of Insurance will exercise its discretion to permit PMI to write new business in the event PMI does not meet the minimum policyholders position required by Arizona law. Moreover, even if the Arizona Department of Insurance permits PMI to continue writing new business, it may be unable to write new business in other states in which PMI fails to meet regulatory capital requirements, and regulators in other states could take the position that PMI must suspend writing new business nationwide. In states that do not have capital adequacy requirements, it is not clear what actions the applicable regulators would take if PMI failed to meet the capital adequacy requirement established by another state. Accordingly, if PMI fails to meet the capital adequacy requirements in one or more states, PMI may have to immediately suspend writing business in some or all states in which it does business.
Other risks and uncertainties are discussed in our SEC filings, including in Item 1A of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, and our Annual Report on Form 10-K for the year ended December 31, 2008. We undertake no obligation to update forward-looking statements.
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PMI Mortgage Insurance Co.
CONTACT: Investors, Bill Horning of The PMI Mortgage Insurance Co.,
+1-925-658-6193, or Media, Tom Taggart of The PMI Mortgage Insurance Co.,
+1-925-658-6511
Web Site: http://www.pmi-us.com/
