EXHIBIT 99.1
The PMI Group, Inc.
[PMI LOGO]
NEWS RELEASE
Investor and media contacts:
Glen Corso / Matt Nichols
925.658.6429 / 925.658.6618
FOR IMMEDIATE RELEASE:
THE PMI GROUP, INC. REPORTS SECOND QUARTER 2003
NET INCOME PER SHARE of $0.77
Walnut Creek, CA, July 31, 2003 —The PMI Group, Inc. (NYSE:PMI) today announced net income per share for the quarter and six months ended June 30, 2003 of $0.77 and $1.77, respectively, compared to $0.88 and $1.88 for the same periods in 2002. Net income for the quarter and six months ended June 30, 2003 was $69.5 million and $159.1 million, respectively, compared to $81.1 million and $172.5 million for the same periods a year ago. Combined[1] new primary insurance written in the quarter was $22.6 billion compared to $16.0 billion for the same period a year ago. Combined primary insurance in force at June 30, 2003 was $184.1 billion compared to $169.0 billion a year ago, an increase of 9 percent.
CONSOLIDATED RESULTS SUMMARY
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(Dollars in millions) | Q2 2003 | YTD 2003 | Q2 2002 | YTD 2002 | ||||||||
Total Revenues | $ | 299.3 | $ | 593.5 | $ | 276.2 | $ | 539.6 | ||||
Total Losses and Expenses | $ | 201.3 | $ | 371.0 | $ | 163.6 | $ | 305.3 | ||||
Net income in accordance with GAAP | $ | 69.5 | $ | 159.1 | $ | 81.1 | $ | 172.5 | ||||
Diluted net income per share in accordance with GAAP | $ | 0.77 | $ | 1.77 | $ | 0.88 | $ | 1.88 | ||||
CONSOLIDATED LOSSES AND LOSS ADJUSTMENT EXPENSES
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(Dollars in millions) | Q2 2003 | YTD 2003 | Q2 2002 | YTD 2002 | ||||||||
Claims paid and loss adjustment expenses | $ | 57.4 | $ | 102.5 | $ | 30.5 | $ | 59.3 | ||||
Change in net loss reserves | 5.1 | 11.6 | 9.5 | 19.7 | ||||||||
Losses and loss adjustment expenses | $ | 62.5 | $ | 114.1 | $ | 40.0 | $ | 79.0 | ||||
| 1 | “Combined” includes results from U.S. Mortgage Insurance Operations (“U.S. MIO”), CMG, Mortgage Insurance Company and PMI Australia. |
Consolidated loss and loss adjustment expenses totaled $62.5 million and $114.1 million for the quarter and year-to-date respectively compared to $40.0 million and $79.0 million for the same periods a year ago. Claims paid and loss adjustment expenses increased over the comparable prior year periods primarily due to higher claims payments in U.S. Mortgage Insurance Operations.
Consolidated gross loss reserves grew to $364.7 million at June 30, 2003, a 9 percent increase over the second quarter 2002, led by gross loss reserve increases of $18.2 million in U.S. Mortgage Insurance Operations over the 12-month period.
BUSINESS SEGMENTS
SECOND QUARTER 2003 SEGMENT HIGHLIGHTS
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(Dollars in millions) | U.S. MIO | International2 | Title | Other3 | Total | |||||||||||
Premiums written | $ | 142.3 | $ | 32.9 | $ | 70.6 | $ | — | $ | 245.8 | ||||||
Premiums earned | 145.0 | 23.2 | 70.6 | — | 238.9 | |||||||||||
Equity in earnings | 3.8 | — | — | 1.8 | 5.7 | |||||||||||
Total revenues | 173.5 | 30.8 | 74.9 | 20.2 | 299.3 | |||||||||||
Total losses and expenses | 94.2 | 7.6 | 70.1 | 29.4 | 201.3 | |||||||||||
Net income in accordance with GAAP | $ | 56.1 | $ | 16.6 | $ | 3.1 | ($ | 6.3 | ) | $ | 69.5 | |||||
(Certain amounts do not necessarily total due to rounding.)
U.S. Mortgage Insurance Operations
U.S. Mortgage Insurance Operations reported premiums written of $142.3 million and premiums earned of $145.0 million for the quarter compared to $164.3 million and $154.4 million, respectively, for the same period a year ago. The decrease in premiums written and premiums earned reflects the combined impact of lower persistency (resulting in reduced insurance in force levels from 12 months earlier), higher premium cessions under captive reinsurance agreements, and reduced levels of modified pool insurance writings.
NEW MORTGAGE INSURANCE WRITTEN
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(Dollars in billions) | Q2 2003 | YTD 2003 | Q2 2002 | YTD 2002 | ||||||||
Domestic4 new primary mortgage insurance written | $ | 17.5 | $ | 31.2 | $ | 12.5 | $ | 25.2 | ||||
Excluding CMG | $ | 15.7 | $ | 27.9 | $ | 11.3 | $ | 22.8 | ||||
Bulk transactions | $ | 3.2 | $ | 3.9 | $ | 0.8 | $ | 1.9 | ||||
Domestic mortgage pool insurance written | $ | 2.8 | $ | 5.4 | $ | 7.7 | $ | 12.9 | ||||
| 2 | “International” includes the results of PMI Australia and PMI Europe and results of operations in Hong Kong. |
| 3 | “Other” includes the results from the holding company and PMI Mortgage Services Co. and equity in earnings from Fairbanks Capital, RAM Re and Truman Fund. |
| 4 | “Domestic” includes results from U.S. mortgage insurance operations and CMG. |
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Domestic primary new insurance written totaled $17.5 billion for the quarter compared to $12.5 billion for the same period a year ago due to higher writings of flow and bulk business driven by higher levels of loan originations. The amount of bulk transactions totaled $3.2 billion for the quarter compared to $0.8 billion for the same period a year ago.
MORTGAGE INSURANCE IN FORCE
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(Dollars in billions) | as of 6/30/03 | as of 12/31/02 | as of 6/30/02 | ||||||||||
Domestic primary insurance in force | $ | 115.2 | $ | 118.5 | $ | 119.0 | |||||||
Excluding CMG | 103.5 | 107.6 | 109.3 | ||||||||||
Domestic primary risk in force | 26.7 | 27.7 | 27.9 | ||||||||||
Excluding CMG | 24.1 | 25.2 | 25.6 | ||||||||||
Domestic primary persistency rate | 47.1 | % | 56.6 | % | 60.5 | % | |||||||
Excluding CMG | 46.3 | % | 56.2 | % | 60.3 | % | |||||||
Domestic primary insurance in force totaled $115.2 billion, a decrease of 3 percent from a year ago. The decline in primary insurance in force was a result of record levels of policy cancellations partially offset by strong levels of new primary insurance written.
CLAIMS PAID
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(Dollars in millions) | Q2 2003 | YTD 2003 | Q2 2002 | YTD 2002 | ||||||||
Claims paid – excluding CMG | ||||||||||||
Primary – traditional flow | $ | 27.2 | $ | 52.8 | $ | 16.3 | $ | 33.3 | ||||
Primary – bulk | $ | 17.8 | $ | 28.9 | $ | 5.8 | $ | 10.8 | ||||
Total Primary | $ | 45.0 | $ | 81.7 | $ | 22.1 | $ | 44.1 | ||||
Pool – all | $ | 4.6 | $ | 7.8 | $ | 3.1 | $ | 4.9 | ||||
Total claims paid – excluding CMG | $ | 49.6 | $ | 89.5 | $ | 25.2 | $ | 49.0 | ||||
PMI’s U.S. Mortgage Insurance Operations reported primary claims paid of $45 million for the quarter, compared to $22.1 million for the same period a year ago. The increase in claims paid was a result of an increase in the average primary claim paid amount and an increase in the percentage of delinquent loans going to claim. The increase in the average primary claim paid amount was primarily caused by increases in the average balance of loans going to claim and deeper coverage amounts, principally on bulk loans which were a larger percentage of all claims in the second quarter and first six months of 2003 than in the same periods in 2002. The increase in the percentage of loans going to claim was caused by higher levels of unemployment in the economy and the seasoning of the primary portfolio. For the six months ended June 30, 2003, the size of the
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primary average claim paid increased to $23,270 compared to $20,272 for the year ended December 31, 2002.
PRIMARY MORTGAGE INSURANCE DEFAULT RATE
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| as of 6/30/03 | as of 12/31/02 | as of 6/30/02 | ||||||||
Domestic primary mortgage insurance in force default rate | 3.75 | % | 3.84 | % | 3.07 | % | ||||
Excluding CMG | 4.12 | % | 4.18 | % | 3.31 | % | ||||
Excluding CMG and bulk transactions | 3.54 | % | 3.52 | % | 2.74 | % | ||||
Bulk transactions only | 8.77 | % | 10.40 | % | 8.25 | % | ||||
In the second quarter of 2003, excluding CMG, PMI’s primary delinquent loan inventory declined to 34,361 from 35,803 at March 31, 2003 and 36,537 at December 31, 2002. The decreases in the delinquent loan inventory since December 31, 2002 were due to a decline in the number of new delinquencies reported to PMI as well as the increase in the number of claims paid during the first six months of 2003. The primary insurance delinquent loan inventory at June 30, 2002 totaled 29,734. The year-over-year increase in primary insurance delinquent loan inventory was due to an increase in delinquencies reported in the third and fourth quarters of 2002. During the second quarter, management assessed the reasonableness of U.S. Mortgage Insurance Operations’ reserves for loss adjustment expenses. The analysis resulted in a decrease in loss adjustment expense reserves by approximately $14 million. U.S. Mortgage Insurance Operations’ case and incurred but not reported reserves were increased by substantially the same amount, resulting in a net increase of $1.3 million to U.S. Mortgage Insurance Operations’ reserves.
PMI’s equity in earnings of CMG Mortgage Insurance Company increased to $3.8 million for the quarter, compared to $3.3 million for the same period a year ago.
PMI Capital Corporation
The results for PMI Capital Corporation include International Mortgage Insurance operations, Title Insurance and equity in the earnings from Fairbanks Capital, RAM Re and the Truman Fund.
PMI CAPITAL CORPORATION COMPONENTS OF NET INCOME
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(Dollars in millions) | Q2 2003 | YTD 2003 | Q2 2002 | YTD 2002 | ||||||||
International mortgage insurance | $ | 16.6 | $ | 30.7 | $ | 7.9 | $ | 25.1 | ||||
Equity in earnings of strategic investments after tax | 1.1 | 8.6 | 6.5 | 12.3 | ||||||||
Title insurance | 3.1 | 6.1 | 3.1 | 5.6 | ||||||||
Net Income in accordance with GAAP | $ | 20.8 | $ | 45.4 | $ | 17.5 | $ | 43.0 | ||||
International Mortgage Insurance Operations
International Mortgage Insurance Operations reported second quarter net income of $16.6 million compared to $7.9 million for the same period a year ago. The increase is primarily the result
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of the increase in underwriting activity which resulted in increases in premiums earned and investment income, as well as the weakening of the U.S. dollar. The impact of the change in foreign exchange rates on net income was an increase of $1.2 million for the quarter and $1.3 million year to date based on the exchange rates at December 31, 2002.
Premiums earned for the second quarter totaled $23.2 million compared to $14.9 million for the same period a year ago. Investment income for the second quarter totaled $7.3 million compared to $4.2 million for the same period a year ago.
Losses and loss adjustment expenses for the second quarter 2003 totaled $0.5 million compared to $2.7 million for the same period a year ago. The decrease is a result of the $1.2 million decline in net loss reserves for PMI Australia due primarily to a decline in delinquent loan inventory to 1,660 from 1,786 at March 31, 2003 and 2,176 at December 31, 2002 as new delinquencies reported slowed.
Primary insurance in force for PMI Australia was $69.0 billion at June 30, 2003 compared to $50.0 billion at June 30, 2002. The increase was primarily attributable to the $5.1 billion of new insurance written during the quarter and $16.6 billion of new insurance written over the previous 12 months, driven by strong mortgage market activity in Australia and a reduction in the number of market participants underwriting mortgage insurance.
Mortgage credit default swap guarantees in force for PMI Europe was $8.6 billion at June 30, 2003 compared to $6.7 billion at March 31, 2003, an increase of 28 percent. The increase in the amount of credit default swap agreements insured was due to $2.5 billion of new credit default swap agreements insured as well as the strengthening of the Euro against the U.S. Dollar during the quarter. At the end of the second quarter, the Euro exchange rate was $1.151 compared to $1.092 at the end the first quarter. Risk in force was $599 million at June 30, 2003 compared to $472 million at June 30, 2002.
Strategic Investments
PMI’s equity in earnings of Fairbanks Capital, RAM Re and the Truman Fund was approximately $1.8 million for the quarter compared to $5.9 million for the same period a year ago.
PMI CAPITAL CORPORATION EQUITY IN EARNINGS OF STRATEGIC INVESTMENTS
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(Dollars in millions) | Q2 2003 | YTD 2003 | Q2 2002 | YTD 2002 | |||||||||
Fairbanks Capital | ($ | 0.4 | ) | 6.7 | $ | 4.5 | $ | 8.2 | |||||
Ram Re | 1.1 | 1.4 | 1.0 | 2.0 | |||||||||
Truman Fund | 1.1 | 2.2 | 0.4 | 3.0 | |||||||||
Total | $ | 1.8 | $ | 10.3 | $ | 5.9 | $ | 13.2 | |||||
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The decrease in equity in earnings was primarily a result of the decline in earnings from Fairbanks. Fairbanks’ loss for the quarter was largely a result of re-structuring and litigation settlement charges. In the quarter, Fairbanks’ servicer ratings were reduced to below average by Standard & Poor’s and Moody’s. Fitch reduced its Fairbanks’ ratings to RPS3, or average.
During the second quarter, as previously disclosed, there were some unfortunate developments regarding Fairbanks. With the assistance of its owners, Fairbanks was able to establish a new credit facility and institute significant management and operational changes. Fairbanks is dependent upon this credit facility to meet its daily operating liquidity needs. While we are pleased with these positive developments, earnings contribution, if any, from Fairbanks remains uncertain due to the ongoing FTC and HUD investigations, private litigation and the possibility of further restructuring of its operations. We have evaluated our investment in Fairbanks Capital of approximately $140 million as of June 30, 2003, and determined that there was no other than temporary decline in the carrying value and, accordingly, we have not recognized an impairment charge with respect to the investment. We will continue to evaluate our investment balance for potential impairment.
PMI’s equity in earnings in the second quarter from Ram Re increased to $1.1 million from $1.0 million compared to the second quarter of 2002, but declined year-to-date compared to the same period last year. The increase in the second quarter was due to the increase in PMI’s investment in Ram Re. The year-to-date results were caused by RAM Re’s $4.1 million increase to its provisions for losses in the first quarter, following similar action taken by the primary guarantors reinsured by RAM Re in connection with securities they have guaranteed. PMI’s share of the increase to loss provisions was $0.9 million.
Title Insurance
PMI’s Title Insurance Operations reported net income of $3.1 million for the quarter, unchanged from the same period a year ago. Premiums earned increased to $70.6 million for the quarter from $54.9 million for the same period a year ago. Other underwriting and operating expenses increased to $63.8 million for the quarter from $50.2 million for the same period a year ago. Losses and loss adjustment expense totaled $6.3 million for the quarter compared to $2.7 million for the same period a year ago. Loss reserves increased over the first quarter 2003 to $24.6 million from $20.5 million. The increases in premiums earned and losses and expenses were a result of the high activity level of title policy underwriting as well as a change in the mix of business between direct and agency business in the second quarter of 2003.
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Other
PMI’s Other business segment, which consists of revenue and expenses of the holding company, equity in earnings from unconsolidated subsidiaries other than CMG, and contract underwriting operations, had total revenues of $20.2 million for the quarter compared to $18.3 million for the same period a year ago. The increase in revenues was caused primarily by an increase in contract underwriting fees, offset by a reduction in our equity in the earnings of Fairbanks discussed earlier.
OTHER BUSINESS SEGMENT REVENUE HIGHLIGHTS
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(Dollars in millions) | Q2 2003 | YTD 2003 | Q2 2002 | YTD 2002 | ||||||||||
Contract Underwriting | $ | 14.0 | $ | 24.6 | $ | 8.2 | $ | 15.2 | ||||||
Strategic Investments | $ | 1.8 | $ | 10.3 | $ | 5.9 | $ | 13.2 | ||||||
Limited Partnerships | 0.0 | (2.5 | ) | (0.1 | ) | 0.2 | ||||||||
Contract underwriting fees rose due to higher volumes of loan underwriting for both the quarter and first six months compared to the same periods in 2002. Interest and dividend income for the quarter decreased to $4.1 million and for the first six months to $8.0 million compared to $5.0 million for the second quarter 2002 and $10.0 million for the six months of 2002 due to lower realized yield on investments.
Other underwriting and operating expenses were $24.4 million for the quarter and $42.5 million for the first six months, compared to $16.4 million and $32.0 million for the same period in 2002. The increase was primarily due to greater contract underwriting expenses related to higher loan volume.
ABOUT THE PMI GROUP, INC.
The PMI Group, Inc. (NYSE:PMI) headquartered in Walnut Creek, California is an international provider of credit enhancement products and lender services that promote homeownership and facilitate mortgage transactions in the capital markets. Through its wholly owned subsidiaries and unconsolidated strategic investments, the company offers residential mortgage insurance and credit enhancement products domestically and internationally, lender services and financial guaranty reinsurance.
PMI is an advocate of affordable housing and supports a number of organizations that foster greater access to affordable housing. PMI’s approach to affordable housing lending is to develop products and services that assist responsible borrowers who may not qualify for mortgage loans under traditional underwriting practices.
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Cautionary Statement: Statements in this press release that are not historical facts, and that relate to future plans, events or performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to a number of risks and uncertainties that could cause the Company’s actual results to differ materially from those expressed. Risks and uncertainties that could affect us are discussed in our various Securities and Exchange Commission filings, including our report on Form 10-K for the year ended December 31, 2002 and our report on Form 10-Q for the quarter ended March 31, 2003.
# # #
8
THE PMI GROUP, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING RESULTS FOR PERIOD ENDING JUNE 30, 2003
| Contents | ||
Consolidated Statements of Operations and Balance Sheets | Page 2 | |
Business Segments Results of Operations | Page 3-4 | |
Business Segments Balance Sheets | Page 5 | |
U.S. Mortgage Insurance Operations Analysis of Loss Reserves and Statistical Information | Page 6 | |
U.S. Mortgage Insurance Operations and CMG Statistical Information | Page 7 | |
International Mortgage Insurance Operations | Page 8 | |
Please refer to the following when noted:
| (1) | The Company's investments and equity earnings in unconsolidated subsidiaries include CMG, RAM Reinsurance, Fairbanks Capital, Truman Fund and other limited partnership interests. |
| (2) | Company obligated mandatory redeemable preferred capital securities of subsidiary trust holding solely junior subordinated deferrable interest debentures of the Company. |
| (3) | U.S. Mortgage Insurance Operations include the operating results of PMI Mortgage Insurance Co. and affiliated U.S. mortgage insurance and reinsurance companies. In addition, CMG, and its affiliates, are included under the equity method of accounting in equity earnings of unconsolidated subsidiaries. |
| (4) | International Mortgage Insurance Operations include PMI Australia, PMI Europe and PMI's Hong Kong reinsurance operations. Financial results of International Operations are subject to currency rate risk. |
| (5) | The "Other" segment includes the activity of the holding company, equity investments in unconsolidated subsidiaries, and the operating results of PMI Mortgage Services Co. |
| (6) | Pool insurance includes modified pool, GSE pool, old pool and all other pool insurance products. |
| (7) | Represents statutory risk to capital ratio for PMI Mortgage Insurance Co. |
| (8) | Upon the adoption of Statement of Financial Accounting Standards ("SFAS") No. 142 "Goodwill and Other Intangible Assets" effective January 1, 2002, the Company realized a gain of $7.2 million for the remaining balance of negative goodwill, recorded in connection with the acquisition of PMI Ltd in 1999. There is no tax provision on the change in accounting principle. The amortization of negative goodwill was reported in operating earnings prior to the adoption of SFAS No. 142. |
| (9) | Per share data has been adjusted to reflect the two-for-one stock split effective in June 2002. |
| (10) | The financial information contained in this material are unaudited. Certain prior year information have been reclassified to conform to the current year's presentation. |
Page 1
THE PMI GROUP, INC. AND SUBSIDIARIES
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||
| (Dollars in thousands, except per share data) | (Dollars in thousands, except per share data) | |||||||||||||||
Net premiums written | $ | 245,771 | $ | 241,072 | $ | 481,055 | $ | 464,454 | ||||||||
Revenues | ||||||||||||||||
Premiums earned | $ | 238,851 | $ | 224,169 | $ | 475,429 | $ | 437,131 | ||||||||
Interest and dividend income | 34,887 | 31,745 | 68,679 | 64,748 | ||||||||||||
Equity in earnings of unconsolidated subsidiaries(1) | 5,687 | 9,096 | 14,502 | 19,776 | ||||||||||||
Net realized investment gains (losses) | 2,095 | 393 | 3,403 | (2,039 | ) | |||||||||||
Other income | 17,792 | 10,776 | 31,476 | 19,993 | ||||||||||||
Total revenues | 299,312 | 276,179 | 593,489 | 539,609 | ||||||||||||
Losses and expenses | ||||||||||||||||
Losses and loss adjustment expenses | 62,458 | 39,962 | 114,113 | 79,010 | ||||||||||||
Amortization of policy acquisition costs | 22,069 | 21,469 | 44,074 | 41,820 | ||||||||||||
Other underwriting and operating expenses | 111,721 | 85,030 | 203,328 | 162,538 | ||||||||||||
Lease abandonment and relocation costs | — | 12,183 | — | 12,183 | ||||||||||||
Interest expense | 4,042 | 3,954 | 7,843 | 7,780 | ||||||||||||
Distributions on mandatorily redeemable preferred securities(2) | 1,007 | 1,007 | 1,661 | 2,015 | ||||||||||||
Total losses and expenses | 201,297 | 163,605 | 371,019 | 305,346 | ||||||||||||
Income before income taxes | 98,015 | 112,574 | 222,470 | 234,263 | ||||||||||||
Income taxes | 28,558 | 31,521 | 63,405 | 68,890 | ||||||||||||
Income before cumulative effect of a change in accounting principle(8) | 69,457 | 81,053 | 159,065 | 165,373 | ||||||||||||
Cumulative effect of a change in accounting principle(8) | — | — | — | 7,172 | ||||||||||||
Net income | $ | 69,457 | $ | 81,053 | $ | 159,065 | $ | 172,545 | ||||||||
Diluted weighted average common shares outstanding(shares in thousands) | 89,708 | 92,210 | 89,835 | 91,844 | ||||||||||||
Diluted net income per share(9) | $ | 0.77 | $ | 0.88 | $ | 1.77 | $ | 1.88 | ||||||||
Net realized investment (gains) losses, net of tax | (0.01 | ) | (0.01 | ) | (0.02 | ) | 0.01 | |||||||||
Lease abandonment and relocation costs | — | 0.09 | — | 0.09 | ||||||||||||
Cumulative effect of a change in accounting principle(8) | — | — | — | (0.08 | ) | |||||||||||
Diluted operating income per share(9) | $ | 0.76 | $ | 0.96 | $ | 1.75 | $ | 1.90 | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
| June 30, | December 31, | June 30, | ||||||||||||||
| 2003 | 2002 | 2002 | ||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and investments, at fair value | $ | 2,952,387 | $ | 2,737,482 | $ | 2,587,053 | ||||||||||
Investments in unconsolidated subsidiaries(1) | 331,695 | 289,795 | 222,302 | |||||||||||||
Reinsurance recoverable and prepaid premiums | 51,309 | 63,924 | 68,148 | |||||||||||||
Deferred policy acquisition costs | 91,573 | 85,210 | 83,049 | |||||||||||||
Accounts receivable affiliates | 28,158 | 3,860 | 4,030 | |||||||||||||
Other assets | 373,238 | 336,778 | 338,879 | |||||||||||||
Total assets | $ | 3,828,360 | $ | 3,517,049 | $ | 3,303,461 | ||||||||||
Liabilities | ||||||||||||||||
Reserve for losses and loss adjustment expenses | $ | 364,692 | $ | 350,841 | $ | 334,718 | ||||||||||
Unearned premiums | 267,606 | 232,877 | 245,028 | |||||||||||||
Long-term debt | 422,950 | 422,950 | 422,950 | |||||||||||||
Other liabilities(3) | 294,935 | 268,048 | 238,452 | |||||||||||||
Total liabilities | 1,350,183 | 1,274,716 | 1,241,148 | |||||||||||||
Mandatorily redeemable preferred securities(2) | 48,500 | 48,500 | 48,500 | |||||||||||||
Shareholders' equity | 2,429,677 | 2,193,833 | 2,013,813 | |||||||||||||
Total liabilities, mandatorily redeemable preferred securities and shareholders' equity | $ | 3,828,360 | $ | 3,517,049 | $ | 3,303,461 | ||||||||||
Book value per share(9) | $ | 27.35 | $ | 24.42 | $ | 22.34 | ||||||||||
Page 2
THE PMI GROUP, INC. AND SUBSIDIARIES
BUSINESS SEGMENTS RESULTS OF OPERATIONS
| U.S. Mortgage Insurance Operations (3) | International Mortgage Insurance Operations (4) | Title Insurance | Other (5) | Consolidated Total | ||||||||||||||
| Three Months Ended June 30, 2003 | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
Net premiums written | $ | 142,257 | $ | 32,876 | $ | 70,638 | $ | — | $ | 245,771 | ||||||||
Revenues | ||||||||||||||||||
Premiums earned | $ | 144,976 | $ | 23,237 | $ | 70,638 | $ | — | $ | 238,851 | ||||||||
Interest and dividend income | 22,673 | 7,316 | 762 | 4,136 | 34,887 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries(1) | 3,846 | — | — | 1,841 | 5,687 | |||||||||||||
Net realized investment gains (losses) | 2,016 | (91) | 29 | 141 | 2,095 | |||||||||||||
Other income | 4 | 310 | 3,439 | 14,039 | 17,792 | |||||||||||||
Total revenues | 173,515 | 30,772 | 74,868 | 20,157 | 299,312 | |||||||||||||
Losses and expenses | ||||||||||||||||||
Losses and loss adjustment expenses | 55,652 | 526 | 6,280 | — | 62,458 | |||||||||||||
Amortization of policy acquisition costs | 19,536 | 2,533 | — | — | 22,069 | |||||||||||||
Other underwriting and operating expenses | 18,953 | 4,503 | 63,818 | 24,447 | 111,721 | |||||||||||||
Interest expense | 49 | — | — | 3,993 | 4,042 | |||||||||||||
Distributions on redeemable preferred securities(2) | — | — | — | 1,007 | 1,007 | |||||||||||||
Total losses and expenses | 94,190 | 7,562 | 70,098 | 29,447 | 201,297 | |||||||||||||
Income (loss) before income taxes | 79,325 | 23,210 | 4,770 | (9,290) | 98,015 | |||||||||||||
Income tax (benefit) | 23,221 | 6,648 | 1,646 | (2,957) | 28,558 | |||||||||||||
Net income (loss) | $ | 56,104 | $ | 16,562 | $ | 3,124 | $ | (6,333) | $ | 69,457 | ||||||||
Gross expense ratio | 27.5 | % | 23.0 | % | 86.2 | % | n/a | n/a | ||||||||||
Net expense ratio | 27.1 | % | 21.4 | % | 86.2 | % | n/a | n/a | ||||||||||
Loss ratio | 38.4 | % | 2.3 | % | 8.5 | % | n/a | n/a | ||||||||||
Combined ratio | 65.5 | % | 23.7 | % | 94.7 | % | n/a | n/a | ||||||||||
| Three Months Ended June 30, 2002 | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
Net premiums written | $ | 164,279 | $ | 21,934 | $ | 54,859 | $ | — | $ | 241,072 | ||||||||
Revenues | ||||||||||||||||||
Premiums earned | $ | 154,409 | $ | 14,901 | $ | 54,859 | $ | — | $ | 224,169 | ||||||||
Interest and dividend income | 21,972 | 4,213 | 584 | 4,976 | 31,745 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries(1) | 3,271 | — | — | 5,825 | 9,096 | |||||||||||||
Net realized investment gains (losses) | 2,697 | (1,606) | — | (698) | 393 | |||||||||||||
Other income | 324 | 2 | 2,274 | 8,176 | 10,776 | |||||||||||||
Total revenues | 182,673 | 17,510 | 57,717 | 18,279 | 276,179 | |||||||||||||
Losses and expenses | ||||||||||||||||||
Losses and loss adjustment expenses | 34,513 | 2,728 | 2,721 | — | 39,962 | |||||||||||||
Amortization of policy acquisition costs | 18,912 | 2,557 | — | — | 21,469 | |||||||||||||
Other underwriting and operating expenses | 17,522 | 892 | 50,177 | 16,439 | 85,030 | |||||||||||||
Lease abandonment and relocation costs | 9,281 | — | — | 2,902 | 12,183 | |||||||||||||
Interest expense | 52 | 6 | — | 3,896 | 3,954 | |||||||||||||
Distributions on redeemable preferred securities(2) | — | — | — | 1,007 | 1,007 | |||||||||||||
Total losses and expenses | 80,280 | 6,183 | 52,898 | 24,244 | 163,605 | |||||||||||||
Income (loss) before income taxes | 102,393 | 11,327 | 4,819 | (5,965) | 112,574 | |||||||||||||
Income tax (benefit) | 30,020 | 3,432 | 1,748 | (3,679) | 31,521 | |||||||||||||
Net income (loss) | $ | 72,373 | $ | 7,895 | $ | 3,071 | $ | (2,286) | $ | 81,053 | ||||||||
Gross expense ratio | 20.8 | % | 19.9 | % | 87.8 | % | n/a | n/a | ||||||||||
Net expense ratio | 22.2 | % | 15.7 | % | 87.8 | % | n/a | n/a | ||||||||||
Loss ratio | 22.4 | % | 18.3 | % | 4.8 | % | n/a | n/a | ||||||||||
Combined ratio | 44.6 | % | 34.0 | % | 92.6 | % | n/a | n/a | ||||||||||
Page 3
THE PMI GROUP, INC. AND SUBSIDIARIES
BUSINESS SEGMENTS RESULTS OF OPERATIONS
| U.S. Mortgage Insurance Operations(3) | International Mortgage Insurance Operations (4) | Title Insurance | Other(5) | Consolidated Total | |||||||||||||||
| Six Months Ended June 30, 2003 | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
Net premiums written | $ | 293,957 | $ | 55,853 | $ | 131,245 | $ | — | $ | 481,055 | |||||||||
Revenues | |||||||||||||||||||
Premiums earned | $ | 301,581 | $ | 42,603 | $ | 131,245 | $ | — | $ | 475,429 | |||||||||
Interest and dividend income | 45,975 | 13,179 | 1,499 | 8,026 | 68,679 | ||||||||||||||
Equity in earnings of unconsolidated subsidiaries(1) | 6,710 | — | — | 7,792 | 14,502 | ||||||||||||||
Net realized investment gains | 1,537 | 250 | 47 | 1,569 | 3,403 | ||||||||||||||
Other income | 173 | 310 | 6,408 | 24,585 | 31,476 | ||||||||||||||
Total revenues | 355,976 | 56,342 | 139,199 | 41,972 | 593,489 | ||||||||||||||
Losses and expenses | |||||||||||||||||||
Losses and loss adjustment expenses | 103,106 | (135 | ) | 11,142 | — | 114,113 | |||||||||||||
Amortization of policy acquisition costs | 39,011 | 5,063 | — | — | 44,074 | ||||||||||||||
Other underwriting and operating expenses | 33,778 | 8,347 | 118,735 | 42,468 | 203,328 | ||||||||||||||
Interest expense | 74 | — | — | 7,769 | 7,843 | ||||||||||||||
Distributions on preferred capital securities(2) | — | — | — | 1,661 | 1,661 | ||||||||||||||
Total losses and expenses | 175,969 | 13,275 | 129,877 | 51,898 | 371,019 | ||||||||||||||
Income (loss) before income taxes | 180,007 | 43,067 | 9,322 | (9,926 | ) | 222,470 | |||||||||||||
Income tax (benefit) | 51,897 | 12,320 | 3,206 | (4,018 | ) | 63,405 | |||||||||||||
Net income (loss) | $ | 128,110 | $ | 30,747 | $ | 6,116 | $ | (5,908 | ) | $ | 159,065 | ||||||||
Gross expense ratio | 25.3 | % | 25.4 | % | 86.3 | % | n/a | n/a | |||||||||||
Net expense ratio | 24.8 | % | 24.0 | % | 86.3 | % | n/a | n/a | |||||||||||
Loss ratio | 34.2 | % | -0.3 | % | 8.1 | % | n/a | n/a | |||||||||||
Combined ratio | 59.0 | % | 23.7 | % | 94.4 | % | n/a | n/a | |||||||||||
| Six Months Ended June 30, 2002 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
Net premiums written | $ | 320,640 | $ | 40,819 | $ | 102,995 | $ | — | $ | 464,454 | ||||||||||
Revenues | ||||||||||||||||||||
Premiums earned | $ | 307,039 | $ | 27,097 | $ | 102,995 | $ | — | $ | 437,131 | ||||||||||
Interest and dividend income | 43,454 | 10,160 | 1,135 | 9,999 | 64,748 | |||||||||||||||
Equity in earnings of unconsolidated subsidiaries(1) | 6,389 | — | — | 13,387 | 19,776 | |||||||||||||||
Net realized investment gains (losses) | 219 | (1,325 | ) | — | (933 | ) | (2,039 | ) | ||||||||||||
Other income | 447 | 2 | 4,320 | 15,224 | 19,993 | |||||||||||||||
Total revenues | 357,548 | 35,934 | 108,450 | 37,677 | 539,609 | |||||||||||||||
Losses and expenses | ||||||||||||||||||||
Losses and loss adjustment expenses | 70,573 | 3,321 | 5,116 | — | 79,010 | |||||||||||||||
Amortization of policy acquisition costs | 38,064 | 3,756 | — | — | 41,820 | |||||||||||||||
Other underwriting and operating expenses | 32,644 | 3,262 | 94,626 | 32,006 | 162,538 | |||||||||||||||
Lease abandonment and relocation costs | 9,281 | — | 2,902 | 12,183 | ||||||||||||||||
Interest expense | 71 | 6 | — | 7,703 | 7,780 | |||||||||||||||
Distributions on preferred capital securities(2) | — | — | 2,015 | 2,015 | ||||||||||||||||
Total losses and expenses | 150,633 | 10,345 | 99,742 | 44,626 | 305,346 | |||||||||||||||
Income (loss) before income taxes | 206,915 | 25,589 | 8,708 | (6,949 | ) | 234,263 | ||||||||||||||
Income tax (benefit) | 63,196 | 7,643 | 3,130 | (5,079 | ) | 68,890 | ||||||||||||||
Income (loss) before cumulative effect of a change in accounting principle | 143,719 | 17,946 | 5,578 | (1,870 | ) | 165,373 | ||||||||||||||
Cumulative effect of a change in accounting principle | — | 7,172 | — | — | 7,172 | |||||||||||||||
Net income (loss) | $ | 143,719 | $ | 25,118 | $ | 5,578 | $ | (1,870 | ) | $ | 172,545 | |||||||||
Gross expense ratio | 21.5 | % | 21.1 | % | 88.2 | % | n/a | n/a | ||||||||||||
Net expense ratio | 22.1 | % | 17.2 | % | 88.2 | % | n/a | n/a | ||||||||||||
Loss ratio | 23.0 | % | 12.3 | % | 4.8 | % | n/a | n/a | ||||||||||||
Combined ratio | 45.1 | % | 29.5 | % | 93.0 | % | n/a | n/a | ||||||||||||
Page 4
THE PMI GROUP, INC. AND SUBSIDIARIES
BUSINESS SEGMENTS BALANCE SHEETS
| U.S. Mortgage Insurance Operations (3) | International Mortgage Insurance Operations (4) | Title Insurance | Other (5) | Consolidated Total | |||||||||||
| June 30, 2003 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash and investments, at fair value | $ | 1,852,366 | $ | 632,200 | $ | 87,658 | $ | 380,163 | $ | 2,952,387 | |||||
Investments in unconsolidated subsidiaries(1) | 91,190 | — | — | 240,505 | 331,695 | ||||||||||
Reinsurance recoverable and prepaid premiums | 39,042 | 12,267 | — | — | 51,309 | ||||||||||
Deferred policy acquisition costs | 66,066 | 25,507 | — | — | 91,573 | ||||||||||
Accounts receivable affiliates | 3,798 | — | — | 24,360 | 28,158 | ||||||||||
Other assets | 224,842 | 19,772 | 16,027 | 112,597 | 373,238 | ||||||||||
Total assets | $ | 2,277,304 | $ | 689,746 | $ | 103,685 | $ | 757,625 | $ | 3,828,360 | |||||
Liabilities | |||||||||||||||
Reserve for losses and loss adjustment expenses | $ | 321,140 | $ | 18,985 | $ | 24,567 | $ | — | $ | 364,692 | |||||
Unearned premiums | 79,752 | 187,854 | — | — | 267,606 | ||||||||||
Long-term debt | — | — | — | 422,950 | 422,950 | ||||||||||
Other liabilities | 152,658 | 26,107 | 18,614 | 97,556 | 294,935 | ||||||||||
Total liabilities | 553,550 | 232,946 | 43,181 | 520,506 | 1,350,183 | ||||||||||
Redeemable preferred capital securities(2) | — | — | — | 48,500 | 48,500 | ||||||||||
Shareholders' equity | 1,727,554 | 456,800 | 60,504 | 184,819 | 2,429,677 | ||||||||||
Total liabilities, mandatorily redeemable preferred securities and shareholders’ equity | $ | 2,277,304 | $ | 689,746 | $ | 103,685 | $ | 757,625 | $ | 3,828,360 | |||||
| December 31, 2002 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash and investments, at fair value | $ | 1,816,039 | $ | 495,778 | $ | 68,728 | $ | 356,937 | $ | 2,737,482 | |||||
Investments in unconsolidated subsidiaries(1) | 83,234 | — | — | 206,561 | 289,795 | ||||||||||
Reinsurance recoverable and prepaid premiums | 53,626 | 10,298 | — | — | 63,924 | ||||||||||
Deferred policy acquisition costs | 64,380 | 20,830 | — | — | 85,210 | ||||||||||
Accounts receivable affiliates | 2,802 | — | — | 1,058 | 3,860 | ||||||||||
Other assets | 293,776 | 13,479 | 16,328 | 13,195 | 336,778 | ||||||||||
Total assets | $ | 2,313,857 | $ | 540,385 | $ | 85,056 | $ | 577,751 | $ | 3,517,049 | |||||
Liabilities | |||||||||||||||
Reserve for losses and loss adjustment expenses | $ | 315,721 | $ | 17,849 | $ | 17,271 | $ | — | $ | 350,841 | |||||
Unearned premiums | 87,118 | 145,759 | — | — | 232,877 | ||||||||||
Long-term debt | — | — | — | 422,950 | 422,950 | ||||||||||
Other liabilities | 159,323 | 17,385 | 14,951 | 76,389 | 268,048 | ||||||||||
Total liabilities | 562,162 | 180,993 | 32,222 | 499,339 | 1,274,716 | ||||||||||
Redeemable preferred capital securities(2) | — | — | — | 48,500 | 48,500 | ||||||||||
Shareholders' equity | 1,751,695 | 359,392 | 52,834 | 29,912 | 2,193,833 | ||||||||||
Total liabilities, mandatorily redeemable preferred securities and shareholders' equity | $ | 2,313,857 | $ | 540,385 | $ | 85,056 | $ | 577,751 | $ | 3,517,049 | |||||
| June 30, 2002 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash and investments, at fair value | $ | 1,733,071 | $ | 451,657 | $ | 56,287 | $ | 346,038 | $ | 2,587,053 | |||||
Investments in unconsolidated subsidiaries(1) | 75,586 | — | — | 146,716 | 222,302 | ||||||||||
Reinsurance recoverable and prepaid premiums | 53,158 | 14,990 | — | — | 68,148 | ||||||||||
Deferred policy acquisition costs | 62,672 | 20,377 | — | — | 83,049 | ||||||||||
Accounts receivable affiliates | 4,030 | — | — | — | 4,030 | ||||||||||
Other assets | 309,251 | 13,137 | 15,851 | 640 | 338,879 | ||||||||||
Total assets | $ | 2,237,768 | $ | 500,161 | $ | 72,138 | $ | 493,394 | $ | 3,303,461 | |||||
Liabilities | |||||||||||||||
Reserve for losses and loss adjustment expenses | $ | 302,947 | $ | 17,051 | $ | 14,720 | $ | — | $ | 334,718 | |||||
Unearned premiums | 102,342 | 142,686 | — | 245,028 | |||||||||||
Long-term debt | — | — | — | 422,950 | 422,950 | ||||||||||
Other liabilities | 166,324 | 26,142 | 12,482 | 33,504 | 238,452 | ||||||||||
Total liabilities | 571,613 | 185,879 | 27,202 | 456,454 | 1,241,148 | ||||||||||
Redeemable preferred capital securities (2) | — | — | — | 48,500 | 48,500 | ||||||||||
Shareholders' equity | 1,666,155 | 314,282 | 44,936 | (11,560) | 2,013,813 | ||||||||||
Total liabilities, mandatorily redeemable preferred securities and shareholders' equity | $ | 2,237,768 | $ | 500,161 | $ | 72,138 | $ | 493,394 | $ | 3,303,461 | |||||
13
THE PMI GROUP, INC. AND SUBSIDIARIES
U.S. MORTGAGE INSURANCE OPERATIONS ANALYSIS OF LOSS RESERVE(3)
| June 30, 2003 | March 31, 2003 | June 30, 2002 | |||||||||||||
| Loans in Default | Reserve for Losses | Loans in Default | Reserve for Losses | Loans in Default | Reserve for Losses | ||||||||||
| (Dollars in thousands) | |||||||||||||||
Primary insurance | 34,361 | $ | 284,599 | 35,803 | $ | 282,434 | 29,734 | $ | 267,220 | ||||||
Pool insurance | 15,559 | 36,541 | 18,836 | 37,974 | 11,124 | 35,727 | |||||||||
Total | 49,920 | $ | 321,140 | 54,639 | $ | 320,408 | 40,858 | $ | 302,947 | ||||||
Reconciliation of Reserve for Losses
| June 30, 2003 | March 31, 2003 | Reserve Change | ||||||||
| (Dollars in thousands) | ||||||||||
Gross reserves: | ||||||||||
Primary insurance | $ | 284,599 | $ | 282,434 | $ | 2,165 | ||||
Pool insurance | 36,541 | 37,974 | (1,433 | ) | ||||||
U.S. Mortgage Insurance operations gross loss reserves | 321,140 | 320,408 | 732 | |||||||
Ceded Reserves: | ||||||||||
Primary insurance | 2,988 | 3,354 | (366 | ) | ||||||
Pool insurance | 150 | 310 | (160 | ) | ||||||
Total ceded loss reserves | 3,138 | 3,664 | (526 | ) | ||||||
U.S. Mortgage Insurance operations net loss reserves | $ | 318,002 | $ | 316,744 | $ | 1,258 | ||||
U.S. MORTGAGE INSURANCE OPERATIONS STATISTICAL INFORMATION(3)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||
Primary new insurance written(in millions) | $ | 15,674 | $ | 11,308 | $ | 27,916 | $ | 22,796 | ||||||||
Primary new risk written(in millions) | $ | 3,622 | $ | 2,778 | $ | 6,462 | $ | 5,475 | ||||||||
Pool insurance written(in millions)(6) | $ | 2,771 | $ | 7,684 | $ | 5,424 | $ | 12,851 | ||||||||
Pool risk written(in millions)(6) | $ | 78 | $ | 362 | $ | 156 | $ | 578 | ||||||||
Product mix as a % of new insurance written: | ||||||||||||||||
95% LTV's | 25 | % | 34 | % | 27 | % | 33 | % | ||||||||
90% LTV's | 37 | % | 41 | % | 39 | % | 43 | % | ||||||||
95% LTV's/30% coverage | 19 | % | 25 | % | 20 | % | 24 | % | ||||||||
90% LTV's/25% coverage | 28 | % | 30 | % | 30 | % | 32 | % | ||||||||
ARMs | 12 | % | 8 | % | 10 | % | 7 | % | ||||||||
Monthlies | 91 | % | 93 | % | 92 | % | 94 | % | ||||||||
Refinances | 49 | % | 35 | % | 50 | % | 42 | % | ||||||||
Bulk transactions | 20 | % | 7 | % | 14 | % | 9 | % | ||||||||
Premiums Written(in thousands): | ||||||||||||||||
Gross premiums written | $ | 178,916 | $ | 189,641 | $ | 366,067 | $ | 371,371 | ||||||||
Ceded premiums, net of assumed premiums | (30,878 | ) | (22,344 | ) | (61,705 | ) | (43,430 | ) | ||||||||
Refunded premiums | (5,781 | ) | (3,018 | ) | (10,405 | ) | (7,301 | ) | ||||||||
Net premiums written | 142,257 | 164,279 | 293,957 | 320,640 | ||||||||||||
Change in unearned premiums | 2,719 | (9,870 | ) | 7,624 | (13,601 | ) | ||||||||||
Net premiums earned | $ | 144,976 | $ | 154,409 | $ | 301,581 | $ | 307,039 | ||||||||
Page 6
THE PMI GROUP, INC. AND SUBSIDIARIES
U.S. MORTGAGE INSURANCE OPERATIONS STATISTICAL INFORMATION(3)
| June 30, | March 31, | June 30, | ||||||||||
| 2003 | 2003 | 2002 | ||||||||||
Primary insurance in force(in millions) | $ | 103,506 | $ | 105,518 | $ | 109,310 | ||||||
Primary risk in force(in millions) | $ | 24,089 | $ | 24,676 | $ | 25,628 | ||||||
Pool risk in force(in millions)(6) | $ | 2,830 | $ | 3,110 | $ | 2,789 | ||||||
Risk-to-capital ratio (7) | 10.3 to 1 | 10.7 to 1 | 11.8 to 1 | |||||||||
Insured primary loans | 834,207 | 854,506 | 897,407 | |||||||||
Persistency | 46.3 | % | 52.7 | % | 60.3 | % | ||||||
Primary loans in default | 34,361 | 35,803 | 29,734 | |||||||||
Primary default rate | 4.12 | % | 4.19 | % | 3.31 | % | ||||||
Primary claims paid(year-to-date in thousands) | $ | 81,679 | $ | 36,662 | $ | 44,143 | ||||||
Number of primary claims paid(year-to-date) | 3,510 | 1,624 | 2,224 | |||||||||
Average primary claim size(year-to-date in thousands) | $ | 23.3 | $ | 22.6 | $ | 19.8 | ||||||
Percentage of NIW subject to captive reinsurance arrangements(year-to-date) | 54.1 | % | 57.0 | % | 50.5 | % | ||||||
Percentage of IIF subject to captive reinsurance arrangements(year-to-date) | 46.9 | % | 45.5 | % | 38.0 | % | ||||||
CMG MORTGAGE INSURANCE COMPANY STATISTICAL INFORMATION
| June 30, | March 31, | June 30, | ||||||||||
| 2003 | 2003 | 2002 | ||||||||||
Primary new insurance written(year-to-date in millions) | $ | 3,308 | $ | 1,498 | $ | 2,437 | ||||||
Primary insurance in force(in millions) | $ | 11,677 | $ | 11,104 | $ | 9,665 | ||||||
Primary risk in force (in millions) | $ | 2,591 | $ | 2,480 | $ | 2,240 | ||||||
Insured primary loans | 93,792 | 90,119 | 81,168 | |||||||||
Persistency | 55.9 | % | 59.0 | % | 62.6 | % | ||||||
Primary loans in default | 481 | 494 | 307 | |||||||||
Primary default rate(year-to-date) | 0.51 | % | 0.55 | % | 0.38 | % | ||||||
Primary claims paid(year-to-date in thousands) | $ | 1,172 | $ | 629 | $ | 491 | ||||||
Number of primary claims paid (year-to-date) | 54 | 25 | 31 | |||||||||
Average primary claims size(year-to-date in thousands) | $ | 21.7 | $ | 25.2 | $ | 15.8 | ||||||
15
THE PMI GROUP, INC. AND SUBSIDIARIES
| INTERNATIONAL INSURANCE OPERATIONS STATISTICAL INFORMATION (4) | |||||||||
| June 30, | March 31, | June 30, | |||||||
| 2003 | 2003 | 2002 | |||||||
PMI Australia | |||||||||
Net premium written(year-to-date in thousands) | $ | 49,621 | $ | 21,253 | $ | 36,360 | |||
Premium earned(year-to-date in thousands) | $ | 37,062 | $ | 17,264 | $ | 24,423 | |||
New insurance written(year-to-date in millions) | $ | 9,231 | $ | 4,125 | $ | 7,187 | |||
Insurance in force(in millions) | $ | 68,954 | $ | 60,227 | $ | 50,021 | |||
Risk in force(in millions) | $ | 62,913 | $ | 54,749 | $ | 45,324 | |||
Loans in default | 1,660 | 1,786 | 2,062 | ||||||
Claims paid(year-to-date in millions) | $ | 1,591 | $ | 886 | $ | 3,167 | |||
Number claims paid(year-to-date) | 136 | 73 | 286 | ||||||
PMI Europe | |||||||||
Net premium written(year-to-date in thousands) | $ | 3,341 | $ | 843 | $ | 829 | |||
Premium earned(year-to-date in thousands) | $ | 3,007 | $ | 851 | $ | 767 | |||
New credit default swap written(year-to-date in millions) | $ | 2,483 | $ | — | $ | 2,076 | |||
Credit default swap in force(in millions) | $ | 8,586 | $ | 6,710 | $ | 5,113 | |||
Risk in force(in millions) | $ | 599 | $ | 537 | $ | 472 | |||
Loans in default | — | — | — | ||||||
Claims paid(year-to-date in millions) | $ | — | $ | — | $ | — | |||
Number claims paid(year-to-date) | — | — | — | ||||||
Page 8
