Exhibit 99.1
| | |
| | NEWS RELEASE |
| |
| | Investors and Media Contacts: |
| | Bill Horning / Beth Haiken |
| | 925.658.6193 / 925.658.6192 |
THE PMI GROUP, INC. REPORTS FIRST QUARTER 2007 NET
INCOME OF $102.0 MILLION, OR $1.16 PER DILUTED SHARE
RECORD QUARTERLY REVENUES DRIVEN BY GROWTH IN
U.S. MORTGAGE INSURANCE OPERATIONS
Walnut Creek, CA, April 30, 2007 - The PMI Group, Inc. (NYSE: PMI) (the “Company”) today reported net income for the first quarter of 2007 of $102.0 million compared to net income in the first quarter of 2006 of $105.3 million. Diluted net income per share grew by approximately six percent to $1.16 for the first quarter of 2007 compared to $1.09 for the first quarter of 2006 and was positively influenced by the Company’s redemption of its 2.5% Senior Convertible Debentures in October 2006.
The Company ended the first quarter of 2007 with a book value of $42.21 per share compared to $37.24 at the end of the first quarter of 2006, representing an increase of approximately 13%.
Highlights include:
| | • | | U.S. Mortgage Insurance Operations1 — achieved record total revenues driven by strong growth in net premiums written and earned, and grew primary insurance in force to $106.9 billion. Net premiums written and net premiums earned in the first quarter of 2007 increased approximately 20% and 16%, respectively, compared to the same period one year ago; |
| | • | | International Operations2 — PMI Australia had solid growth in net premiums written driven by insurance in force growth of 27%, compared to the first quarter of 2006, to end at $156.7 billion. PMI Europe reported strong growth in net premiums written of approximately 24% compared to the first quarter of 2006; |
| | • | | Financial Guaranty3 — equity in earnings from FGIC grew by 34% to $29.3 million compared to the first quarter of 2006 as a result of strong premium earnings, increased net investment income and a favorable impact to tax expense from a reduction of contingent tax reserves; |
1 | “U.S. Mortgage Insurance Operations” includes the results of PMI Mortgage Insurance Co. (PMI) and affiliated U.S. reinsurance companies and equity in earnings from CMG Mortgage Insurance Company (CMG MI). |
2 | “International Operations” includes the results of PMI Australia, PMI Europe and PMI Asia. |
3 | “Financial Guaranty” includes PMI Guaranty and our equity in earnings from our investments in Financial Guaranty Insurance Company, Inc. (FGIC) and Ram Reinsurance Company Ltd. (RAM Re). |
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| | • | | Capital Events — the Company repurchased approximately 325,000 common shares for approximately $14 million. The Company’s accelerated stock buyback program is expected to be completed in the second quarter of 2007. |
Consolidated Operating Results
Consolidated net premiums written for the first quarter of 2007 totaled $244.1 million compared to $201.9 million for the same period one year ago. The year over year increase was primarily due to an increase in new insurance written, improved persistency, higher average premium rates and higher average insured loan balances in U.S. Mortgage Insurance Operations and an increase in net premiums written in PMI Australia.
Consolidated premiums earned for the first quarter of 2007 were $236.4 million compared to $206.2 million for the same period one year ago. The increase in the first quarter of 2007 was due to insurance in force growth, higher average premium rates and loan sizes in U.S. Mortgage Insurance Operations and insurance in force growth in PMI Australia.
Consolidated losses and loss adjustment expenses for the first quarter of 2007 were $109.3 million compared to $60.9 million in the same period last year. The increase in first quarter of 2007 was primarily a result of higher incurred losses in U.S. Mortgage Insurance Operations and PMI Australia. The incurred losses increase in U.S. Mortgage Insurance Operations was a result of an increase in claim size and claim rates while the increase in PMI Australia was due to higher claim sizes and an increase in the number of delinquent loans.
Consolidated other underwriting and operating expensesfor the first quarter of 2007 were $62.7 million compared to $58.6 million for the same period one year ago. The increase in the first quarter of 2007 was due primarily to higher stock option expense charges.
Consolidated reserve for losses and loss adjustment expenses totaled $443.0 million as of March 31, 2007 compared to $414.7 million as of December 31, 2006 and $369.9 million as of March 31, 2006. Loss reserves in U.S. Mortgage Insurance Operations increased $19.9 million in the first quarter of 2007 primarily due to lower default cure rates and higher claim sizes. PMI Australia’s reserve for losses and LAE increased $7.8 million in the first quarter of 2007 primarily due to an increase in the number of delinquent loans.
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| The PMI Group, Inc. First Quarter Results by Segment | |
| | |
| | | First Quarter Total Revenues | | | First Quarter Net Income | |
(Dollars in millions, except per share data) | | 2007 | | 2006 | | % Change | | | 2007 | | | 2006 | | | % Change | |
U.S. Mortgage Insurance Operations | | $ | 229.2 | | $ | 197.9 | | 15.8 | % | | $ | 68.9 | | | $ | 70.1 | | | (1.7 | )% |
International Operations | | | 63.8 | | | 56.6 | | 12.7 | % | | | 23.1 | | | | 28.6 | | | (19.2 | )% |
Financial Guaranty | | | 34.2 | | | 23.2 | | 47.4 | % | | | 29.9 | | | | 21.1 | | | 41.7 | % |
Corporate and Other4 | | | 3.8 | | | 10.1 | | n.m. | | | | (19.8 | ) | | | (14.5 | ) | | n.m. | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 331.0 | | $ | 287.9 | | 15.0 | % | | $ | 102.0 | | | $ | 105.3 | | | (3.1 | )% |
| | | | | | | | | | | | | | | | | | | | |
Diluted Net Income Per Share | | | | | | | | | | | $ | 1.16 | | | $ | 1.09 | | | 6.4 | % |
Book Value Per Share | | | | | | | | | | | $ | 42.21 | | | $ | 37.24 | | | 13.3 | % |
May not total due to rounding
n.m. – Not meaningful
Segment Highlights
U.S. Mortgage Insurance Operations
| | • | | Net premiums written in the first quarter of 2007 increased to $195.9 million from $163.5 million in the first quarter of 2006. The increase was due primarily to increases in new insurance written, improved persistency, higher average premium rates and higher average insured loan balances. |
| | • | | The primary persistency rate improved to 70.7% in the first quarter of 2007 compared to 63.1% in the first quarter of 2006. |
| | • | | Total incurred losses in the first quarter of 2007 were $92.8 million compared to $59.1 million in the first quarter of 2006 driven by higher claim sizes and higher claim rates. |
| | • | | Total claims paid increased to $69.3 million for the first quarter of 2007 compared to $55.1 million in the first quarter of 2006 driven by an increase in the number of claims paid and a higher average claim size. |
| | • | | After-tax equity in earnings from CMG MI for the first quarter of 2007 was $3.2 million, compared to $2.9 million for the same period of 2006. CMG MI’s insurance in force grew to $16.7 billion, persistency increased to 78.5% and the primary default rate was just under one percent. |
International Operations
| | • | | PMI Australia reported quarterly net income of $18.0 million for the first quarter of 2007 compared to $24.1 million for the first quarter of 2006. The decrease in net income was due primarily to higher incurred losses partially offset by increases in net investment income and premiums earned. The first quarter of 2007 loss reserve addition was $7.8 million while paid claims for the quarter totaled $8.4 million. |
4 | The “Corporate and Other” segment primarily consists of the holding company, contract underwriting operations and intercompany eliminations. |
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| | • | | PMI Europe reported net income of $3.0 million in the first quarter of 2007 compared to $2.9 million for the same period a year ago. Net income in the first quarter of 2007 was favorably impacted by a decrease in losses and expenses offset by a decline in premiums earned. |
| | • | | PMI Asia’s net income in the first quarter of 2007 totaled $2.2 million compared to $1.6 million for the same period a year ago. |
Financial Guaranty
| | • | | After-tax equity in earnings from FGIC for the first quarter of 2007 totaled $27.1 million compared to $20.3 million for the same period a year ago. |
| | • | | After-tax equity in earnings from RAM Re for the first quarter of 2007 was $1.5 million compared to $0.8 million for the same period one year ago. |
| | • | | PMI Guaranty’s net income in the first quarter of 2007 totaled $1.2 million. PMI Guaranty began operations in the fourth quarter of 2006. |
Corporate and Other
| | • | | The Corporate and Other segment reported a net loss for the first quarter of 2007 totaling $19.8 million compared to a net loss of $14.5 million for the same period a year ago. The increase in the net loss for the first quarter of 2007 compared to 2006 was due primarily to decreased net investment income from a reduction in the size of the investment portfolio and an increase in share-based compensation expense. |
ABOUT THE PMI GROUP, INC.
The PMI Group, Inc. (NYSE: PMI), headquartered in Walnut Creek, CA, is an international provider of credit enhancement products 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, financial guaranty insurance, and financial guaranty reinsurance. Through its subsidiaries, The PMI Group, Inc. is one of the world’s largest providers of private mortgage insurance with operations in the United States, Australia, New Zealand, and the European Union, as well as one of the largest providers of mortgage guaranty reinsurance in Hong Kong.
Cautionary Statement: Statements in this earnings 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. 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 these forward-looking statements. Risks and uncertainties that could affect the Company are discussed in our Form 10-K for the year ended December 31, 2006 and include changes in economic conditions such as interest rates, home values, employment rates and refinance activity. We undertake no obligation to update forward-looking statements.
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THE PMI GROUP, INC. AND SUBSIDIARIES (the “Company”)
FINANCIAL RESULTS AND STATISTICAL INFORMATION FOR THE PERIOD ENDED MARCH 31, 2007
Contents
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Consolidated Statements of Operations and Balance Sheets | | Page 2 |
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Business Segments Results of Operations - Three Months Ended March 31, 2007 and 2006 | | Page 3 |
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Business Segments Balance Sheets | | Page 4 |
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U.S. Mortgage Insurance Operations Analysis of Reserve for Losses and LAE and Financial and Statistical Information | | Page 5 |
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U.S. Mortgage Insurance Operations Financial and Statistical Information | | Page 6 |
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CMG Mortgage Insurance Company, PMI Australia and PMI Europe Financial and Statistical Information | | Page 7 |
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Appendix A - PMI Australia and PMI Europe Quarterly Financial Information | | Page 8 |
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Appendix B - Business Segments Results of Operations by Quarter | | Page 9 |
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Appendix C - PMI Australia Financial and Statistical Information | | Page 10 |
Please refer to the following when noted:
| (1) | For the quarter ended March 31, 2007, the Company’s equity in earnings from unconsolidated subsidiaries include FGIC Corporation, CMG Mortgage Insurance Company (“CMG MI”), RAM Reinsurance Company, Ltd. (“RAM Re”), and certain limited partnership interests. |
| (2) | U.S. Mortgage Insurance Operations include the operating results of PMI Mortgage Insurance Co. (“PMI”) and affiliated U.S. mortgage insurance and reinsurance companies. CMG MI and its affiliates are included under the equity method of accounting in equity in earnings from unconsolidated subsidiaries. |
| (3) | International Operations include PMI Australia, PMI Europe and PMI Asia. PMI Canada is expected to begin offering residential mortgage insurance products to Canadian lenders and mortgage originators in the first half of 2007. |
| (4) | Financial Guaranty represents our equity investments in FGIC Corporation and RAM Re, and also represents PMI Guaranty Co. (“PMI Guaranty”). |
| (5) | The “Corporate and Other” segment includes other income and related operating expenses of PMI Mortgage Services Co.; investment income, interest expense, intercompany eliminations and corporate expenses of The PMI Group, Inc.; the results of Commercial Loan Insurance Corporation and WMAC Credit Insurance Corporation and equity in earnings from certain limited partnerships. |
| (6) | Other underwriting and operating expenses from the “Corporate and Other” segment includes charges of $7.1 million (pre-tax) or $5.0 million (after tax) for stock option expenses and related stock based compensation expenses in the first quarter ended March 31, 2007 compared to pre-tax $5.0 million ($3.7 million after tax) for the corresponding period in 2006. |
| (7) | The expense ratio is expressed as a percentage, of the sum of amortization of deferred policy acquisition costs and other underwriting and operating expenses to net premiums written. The loss ratio is expressed as a percentage, of the sum of losses and loss adjustment expenses to premiums earned. |
| (8) | Pool insurance includes modified pool, GSE pool, old pool and all other pool insurance products for U.S. Mortgage Insurance Operations. |
| (9) | Statutory risk-to-capital ratio is for PMI only. |
| (10) | In March 2007, 325,000 common shares were repurchased for $14.2 million, or $43.81 per common share, under the $400 million program which was authorized by our Board of Directors in July 2006. In February 2007, our Board of Directors authorized another common share repurchase program in an amount not to exceed $150 million. No common shares have been repurchased under the February 2007 program. |
| (11) | Interest expense in our Financial Guaranty segment relates to a $50 million surplus note provided to PMI Guaranty Co. by the Company. The surplus note bears interest at an annual rate of 5.85% and is due October 20, 2026. This is eliminated in the Corporate and Other segment. |
| 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. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| | | | | | |
| | | Three Months Ended March 31, |
| | | 2007 | | 2006 |
| | | (Dollars and shares, except per share data, in thousands) |
Net premiums written | | $ | 244,051 | | $ | 201,904 |
| | | | | | |
| | |
Revenues | | | | | | |
Premiums earned | | $ | 236,361 | | $ | 206,241 |
Income from credit default swaps | | | 1,828 | | | 1,638 |
Net investment income | | | 52,639 | | | 46,867 |
Equity in earnings from unconsolidated subsidiaries(1) | | | 36,509 | | | 27,625 |
Net realized investment gains | | | 1,578 | | | 340 |
Other income | | | 2,082 | | | 5,147 |
| | | | | | |
Total revenues | | | 330,997 | | | 287,858 |
| | | | | | |
| | |
Losses and expenses | | | | | | |
Losses and loss adjustment expenses | | | 109,320 | | | 60,939 |
Amortization of deferred policy acquisition costs | | | 16,445 | | | 16,987 |
Other underwriting and operating expenses(6) | | | 62,701 | | | 58,565 |
Field office restructuring | | | — | | | 1,955 |
Interest expense | | | 8,259 | | | 8,179 |
| | | | | | |
Total losses and expenses | | | 196,725 | | | 146,625 |
| | | | | | |
| | |
Income before income taxes | | | 134,272 | | | 141,233 |
Income taxes | | | 32,239 | | | 35,885 |
| | | | | | |
Net income | | $ | 102,033 | | $ | 105,348 |
| | | | | | |
| | |
Diluted net income per share | | $ | 1.16 | | $ | 1.09 |
| | | | | | |
| | |
Reconciliation of earnings per share | | | | | | |
Net income | | $ | 102,033 | | $ | 105,348 |
Plus: Interest expense on contingently convertible debt, net of income taxes | | | — | | | 1,912 |
| | | | | | |
Net income adjusted for diluted earnings per share calculation | | $ | 102,033 | | $ | 107,260 |
| | | | | | |
| | |
Share data: | | | | | | |
Basic weighted average common shares outstanding | | | 86,968 | | | 89,036 |
Stock options and other dilutive components | | | 1,212 | | | 1,413 |
Common stock equivalent shares related to contingently convertible debt | | | — | | | 8,153 |
| | | | | | |
Diluted weighted average common shares outstanding | | | 88,180 | | | 98,602 |
| | | | | | |
| | |
Share repurchase data: | | | | | | |
Common shares repurchased (10) | | | 325 | | | 81 |
| | | | | | |
Average price paid per common share repurchased (including commissions) | | $ | 43.81 | | $ | 43.01 |
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CONSOLIDATED BALANCE SHEETS
| | | | | | | | | |
| | | March 31, 2007 | | December 31,
2006 | | March 31, 2006 |
| | | (Unaudited) | | | | (Unaudited) |
| | | (Dollars and shares, except per share data, in thousands) |
Assets | | | | | | | | | |
Cash and investments, at fair value | | $ | 3,935,240 | | $ | 3,750,140 | | $ | 3,876,953 |
Investments in unconsolidated subsidiaries(1) | | | 1,129,764 | | | 1,100,387 | | | 1,002,707 |
Related party receivables | | | 1,857 | | | 714 | | | 2,779 |
Reinsurance receivables, reinsurance recoverables and prepaid premiums | | | 10,614 | | | 25,315 | | | 20,225 |
Deferred policy acquisition costs | | | 88,772 | | | 87,008 | | | 84,173 |
Other assets | | | 371,589 | | | 356,582 | | | 360,673 |
| | | | | | | | | |
Total assets | | $ | 5,537,836 | | $ | 5,320,146 | | $ | 5,347,510 |
| | | | | | | | | |
| | | |
Liabilities | | | | | | | | | |
Reserve for losses and loss adjustment expenses | | $ | 443,020 | | $ | 414,736 | | $ | 369,914 |
Unearned premiums | | | 537,857 | | | 520,264 | | | 480,460 |
Long-term debt | | | 496,593 | | | 496,593 | | | 819,529 |
Other liabilities | | | 395,405 | | | 319,963 | | | 350,349 |
| | | | | | | | | |
Total liabilities | | | 1,872,875 | | | 1,751,556 | | | 2,020,252 |
| | | |
Shareholders’ equity | | | 3,664,961 | | | 3,568,590 | | | 3,327,258 |
| | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 5,537,836 | | $ | 5,320,146 | | $ | 5,347,510 |
| | | | | | | | | |
| | | |
Basic shares issued and outstanding | | | 86,835 | | | 86,747 | | | 89,354 |
| | | | | | | | | |
| | | |
Book value per share | | $ | 42.21 | | $ | 41.14 | | $ | 37.24 |
| | | | | | | | | |
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THE PMI GROUP, INC. AND SUBSIDIARIES
BUSINESS SEGMENTS RESULTS OF OPERATIONS
| | | | | | | | | | | | | | | | | | |
| | | U.S. Mortgage
Insurance
Operations (2) | | | International
Operations (3) | | | Financial
Guaranty (4) | | Corporate and
Other (5) | | | Consolidated
Total |
| | | Three Months Ended March 31, 2007 (Unaudited) |
| | | (Dollars in thousands) |
Net premiums written | | $ | 195,916 | | | $ | 43,382 | | | $ | 4,741 | | $ | 12 | | | $ | 244,051 |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Revenues | | | | | | | | | | | | | | | | | | |
Premiums earned | | $ | 193,759 | | | $ | 42,382 | | | $ | 207 | | $ | 13 | | | $ | 236,361 |
Income from credit default swaps | | | — | | | | 1,828 | | | | — | | | — | | | | 1,828 |
Net investment income | | | 28,322 | | | | 19,164 | | | | 2,321 | | | 2,832 | | | | 52,639 |
Equity in earnings (losses) from unconsolidated subsidiaries(1) | | | 4,861 | | | | — | | | | 31,703 | | | (55 | ) | | | 36,509 |
Net realized investment gains (losses) | | | 2,267 | | | | 37 | | | | — | | | (726 | ) | | | 1,578 |
Other (loss) income | | | (13 | ) | | | 389 | | | | — | | | 1,706 | | | | 2,082 |
| | | | | | | | | | | | | | | | | | |
Total revenues | | | 229,196 | | | | 63,800 | | | | 34,231 | | | 3,770 | | | | 330,997 |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Losses and expenses | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses | | | 92,784 | | | | 16,536 | | | | — | | | — | | | | 109,320 |
Amortization of deferred policy acquisition costs | | | 12,582 | | | | 3,761 | | | | 102 | | | — | | | | 16,445 |
Other underwriting and operating expenses(6) | | | 27,661 | | | | 10,573 | | | | 454 | | | 24,013 | | | | 62,701 |
Interest expense(11) | | | — | | | | 6 | | | | 731 | | | 7,522 | | | | 8,259 |
| | | | | | | | | | | | | | | | | | |
Total losses and expenses | | | 133,027 | | | | 30,876 | | | | 1,287 | | | 31,535 | | | | 196,725 |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) before income taxes | | | 96,169 | | | | 32,924 | | | | 32,944 | | | (27,765 | ) | | | 134,272 |
Income taxes (benefit) | | | 27,293 | | | | 9,798 | | | | 3,080 | | | (7,932 | ) | | | 32,239 |
| | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 68,876 | | | $ | 23,126 | | | $ | 29,864 | | $ | (19,833 | ) | | $ | 102,033 |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Expense ratio(7) | | | 20.5 | % | | | 33.0 | % | | | | | | | | | | |
Loss ratio(7) | | | 47.9 | % | | | 39.0 | % | | | | | | | | | | |
Combined ratio | | | 68.4 | % | | | 72.0 | % | | | | | | | | | | |
| |
| | | Three Months Ended March 31, 2006 (Unaudited) |
| | | (Dollars in thousands) |
Net premiums written | | $ | 163,474 | | | $ | 38,420 | | | $ | — | | $ | 10 | | | $ | 201,904 |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Revenues | | | | | | | | | | | | | | | | | | |
Premiums earned | | $ | 167,538 | | | $ | 38,686 | | | $ | — | | $ | 17 | | | $ | 206,241 |
Income from credit default swaps | �� | | — | | | | 1,638 | | | | — | | | — | | | | 1,638 |
Net investment income | | | 25,676 | | | | 14,785 | | | | — | | | 6,406 | | | | 46,867 |
Equity in earnings (losses) from unconsolidated subsidiaries(1) | | | 4,492 | | | | — | | | | 23,235 | | | (102 | ) | | | 27,625 |
Net realized investment gains (losses) | | | 237 | | | | 142 | | | | — | | | (39 | ) | | | 340 |
Other (loss) income | | | (23 | ) | | | 1,393 | | | | — | | | 3,777 | | | | 5,147 |
| | | | | | | | | | | | | | | | | | |
Total revenues | | | 197,920 | | | | 56,644 | | | | 23,235 | | | 10,059 | | | | 287,858 |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Losses and expenses | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses | | | 59,147 | | | | 1,792 | | | | — | | | — | | | | 60,939 |
Amortization of deferred policy acquisition costs | | | 13,442 | | | | 3,545 | | | | — | | | — | | | | 16,987 |
Other underwriting and operating expenses(6) | | | 25,911 | | | | 9,789 | | | | — | | | 22,865 | | | | 58,565 |
Field office restructuring | | | 1,955 | | | | — | | | | — | | | — | | | | 1,955 |
Interest expense | | | — | | | | — | | | | — | | | 8,179 | | | | 8,179 |
| | | | | | | | | | | | | | | | | | |
Total losses and expenses | | | 100,455 | | | | 15,126 | | | | — | | | 31,044 | | | | 146,625 |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) before income taxes | | | 97,465 | | | | 41,518 | | | | 23,235 | | | (20,985 | ) | | | 141,233 |
Income tax (benefit) | | | 27,360 | | | | 12,909 | | | | 2,137 | | | (6,521 | ) | | | 35,885 |
| | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 70,105 | | | $ | 28,609 | | | $ | 21,098 | | $ | (14,464 | ) | | $ | 105,348 |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Expense ratio(7) | | | 25.3 | % | | | 34.7 | % | | | | | | | | | | |
Loss ratio(7) | | | 35.3 | % | | | 4.6 | % | | | | | | | | | | |
Combined ratio | | | 60.6 | % | | | 39.3 | % | | | | | | | | | | |
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THE PMI GROUP, INC. AND SUBSIDIARIES
BUSINESS SEGMENTS BALANCE SHEETS
| | | | | | | | | | | | | | | | | |
| | | U.S. Mortgage
Insurance
Operations (2) | | International
Operations (3) | | Financial
Guaranty (4) | | | Corporate and
Other (5) | | | Consolidated
Total |
| | | March 31, 2007 (unaudited) |
| | | (Dollars in thousands) |
Assets | | | | | | | | | | | | | | | | | |
Cash and investments, at fair value | | $ | 2,162,451 | | $ | 1,398,636 | | $ | 214,180 | | | $ | 159,973 | | | $ | 3,935,240 |
Investments in unconsolidated subsidiaries(1) | | | 137,041 | | | — | | | 977,523 | | | | 15,200 | | | | 1,129,764 |
Related party receivables (payables) | | | 1,811 | | | — | | | 131 | | | | (85 | ) | | | 1,857 |
Reinsurance receivables, recoverables and prepaid premiums | | | 8,984 | | | 1,630 | | | — | | | | — | | | | 10,614 |
Deferred policy acquisition costs | | | 43,193 | | | 43,397 | | | 2,182 | | | | — | | | | 88,772 |
Other assets | | | 201,280 | | | 68,851 | | | 5,284 | | | | 96,174 | | | | 371,589 |
| | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,554,760 | | $ | 1,512,514 | | $ | 1,199,300 | | | $ | 271,262 | | | $ | 5,537,836 |
| | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities | | | | | | | | | | | | | | | | | |
Reserve for losses and loss adjustment expenses | | $ | 386,036 | | $ | 56,984 | | $ | — | | | $ | — | | | $ | 443,020 |
Unearned premiums | | | 108,968 | | | 422,733 | | | 6,123 | | | | 33 | | | | 537,857 |
Long-term debt | | | — | | | — | | | 50,000 | (11) | | | 446,593 | | | | 496,593 |
Other liabilities (assets) | | | 347,720 | | | 78,001 | | | 45,745 | | | | (76,061 | ) | | | 395,405 |
| | | | | | | | | | | | | | | | | |
Total liabilities | | | 842,724 | | | 557,718 | | | 101,868 | | | | 370,565 | | | | 1,872,875 |
| | | | | |
Shareholders’ equity (deficit) | | | 1,712,036 | | | 954,796 | | | 1,097,432 | | | | (99,303 | ) | | | 3,664,961 |
| | | | | | | | | | | | | | | | | |
| | | | | |
Total liabilities and shareholders’ equity | | $ | 2,554,760 | | $ | 1,512,514 | | $ | 1,199,300 | | | $ | 271,262 | | | $ | 5,537,836 |
| | | | | | | | | | | | | | | | | |
| |
| | | December 31, 2006 |
| | | (Dollars in thousands) |
Assets | | | | | | | | | | | | | | | | | |
Cash and investments, at fair value | | $ | 1,990,326 | | $ | 1,349,069 | | $ | 210,277 | | | $ | 200,468 | | | $ | 3,750,140 |
Investments in unconsolidated subsidiaries(1) | | | 132,403 | | | — | | | 950,249 | | | | 17,735 | | | | 1,100,387 |
Related party receivables | | | 735 | | | — | | | — | | | | (21 | ) | | | 714 |
Reinsurance receivables, recoverables and prepaid premiums | | | 16,504 | | | 8,811 | | | — | | | | — | | | | 25,315 |
Deferred policy acquisition costs | | | 43,523 | | | 42,538 | | | 947 | | | | — | | | | 87,008 |
Other assets | | | 209,331 | | | 46,669 | | | 3,161 | | | | 97,421 | | | | 356,582 |
| | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,392,822 | | $ | 1,447,087 | | $ | 1,164,634 | | | $ | 315,603 | | | $ | 5,320,146 |
| | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities | | | | | | | | | | | | | | | | | |
Reserve for losses and loss adjustment expenses | | $ | 366,182 | | $ | 48,554 | | $ | — | | | $ | — | | | $ | 414,736 |
Unearned premiums | | | 106,445 | | | 412,196 | | | 1,589 | | | | 34 | | | | 520,264 |
Long-term debt | | | — | | | — | | | 50,000 | (11) | | | 446,593 | | | | 496,593 |
Other liabilities (assets) | | | 280,678 | | | 73,099 | | | 41,256 | | | | (75,070 | ) | | | 319,963 |
| | | | | | | | | | | | | | | | | |
Total liabilities | | | 753,305 | | | 533,849 | | | 92,845 | | | | 371,557 | | | | 1,751,556 |
| | | | | |
Shareholders’ equity (deficit) | | | 1,639,517 | | | 913,238 | | | 1,071,789 | | | | (55,954 | ) | | | 3,568,590 |
| | | | | | | | | | | | | | | | | |
| | | | | |
Total liabilities and shareholders’ equity | | $ | 2,392,822 | | $ | 1,447,087 | | $ | 1,164,634 | | | $ | 315,603 | | | $ | 5,320,146 |
| | | | | | | | | | | | | | | | | |
| |
| | | March 31, 2006 (unaudited) |
| | | (Dollars in thousands) |
Assets | | | | | | | | | | | | | | | | | |
Cash and investments, at fair value | | $ | 2,203,435 | | $ | 1,094,316 | | $ | — | | | $ | 579,202 | | | $ | 3,876,953 |
Investments in unconsolidated subsidiaries(1) | | | 133,218 | | | — | | | 850,686 | | | | 18,803 | | | | 1,002,707 |
Related party receivables | | | 2,183 | | | — | | | — | | | | 596 | | | | 2,779 |
Reinsurance receivables, recoverables and prepaid premiums | | | 14,986 | | | 5,239 | | | — | | | | — | | | | 20,225 |
Deferred policy acquisition costs | | | 46,987 | | | 37,186 | | | — | | | | — | | | | 84,173 |
Other assets | | | 206,435 | | | 30,560 | | | — | | | | 123,678 | | | | 360,673 |
| | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,607,244 | | $ | 1,167,301 | | $ | 850,686 | | | $ | 722,279 | | | $ | 5,347,510 |
| | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities | | | | | | | | | | | | | | | | | |
Reserve for losses and loss adjustment expenses | | $ | 346,437 | | $ | 23,476 | | $ | — | | | $ | 1 | | | $ | 369,914 |
Unearned premiums | | | 156,993 | | | 323,431 | | | — | | | | 36 | | | | 480,460 |
Long-term debt | | | — | | | — | | | — | | | | 819,529 | | | | 819,529 |
Other liabilities (assets) | | | 282,510 | | | 79,565 | | | 21,148 | | | | (32,874 | ) | | | 350,349 |
| | | | | | | | | | | | | | | | | |
Total liabilities | | | 785,940 | | | 426,472 | | | 21,148 | | | | 786,692 | | | | 2,020,252 |
| | | | | |
Shareholders’ equity (deficit) | | | 1,821,304 | | | 740,829 | | | 829,538 | | | | (64,413 | ) | | | 3,327,258 |
| | | | | | | | | | | | | | | | | |
| | | | | |
Total liabilities and shareholders’ equity | | $ | 2,607,244 | | $ | 1,167,301 | | $ | 850,686 | | | $ | 722,279 | | | $ | 5,347,510 |
| | | | | | | | | | | | | | | | | |
Page 4
THE PMI GROUP, INC. AND SUBSIDIARIES
U.S. MORTGAGE INSURANCE OPERATIONS(2) ANALYSIS OF RESERVE FOR LOSSES AND LAE
| | | | | | | | | | | | | | | |
| | | March 31, 2007 | | December 31, 2006 | | March 31, 2006 |
| | | 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 thousands) |
Primary insurance | | 39,206 | | $ | 348,735 | | 39,997 | | $ | 332,900 | | 37,784 | | $ | 308,843 |
Pool insurance(8) | | 18,500 | | | 37,301 | | 15,898 | | | 33,282 | | 19,069 | | | 37,594 |
| | | | | | | | | | | | | | | |
Total | | 57,706 | | $ | 386,036 | | 55,895 | | $ | 366,182 | | 56,853 | | $ | 346,437 |
| | | | | | | | | | | | | | | |
Reconciliation of Reserve for Losses and LAE
| | | | | | | | | | | |
| | | March 31,
2007 | | | December 31,
2006 | | | Reserve
Change |
| | | (Dollars in thousands) |
Gross reserve for losses and LAE: | | | | | | | | | | | |
Primary insurance | | $ | 348,735 | | | $ | 332,900 | | | $ | 15,835 |
Pool insurance(8) | | | 37,301 | | | | 33,282 | | | | 4,019 |
| | | | | | | | | | | |
Total gross reserve for losses and LAE | | | 386,036 | | | | 366,182 | | | | 19,854 |
| | | |
Ceded reserve for losses: | | | | | | | | | | | |
Primary insurance | | | (2,590 | ) | | | (2,769 | ) | | | 179 |
Pool insurance (8) | | | (79 | ) | | | (79 | ) | | | — |
| | | | | | | | | | | |
Total ceded reserve for losses | | | (2,669 | ) | | | (2,848 | ) | | | 179 |
| | | | | | | | | | | |
| | | |
Net reserve for losses and LAE | | $ | 383,367 | | | $ | 363,334 | | | $ | 20,033 |
| | | | | | | | | | | |
U.S. MORTGAGE INSURANCE OPERATIONS(2) FINANCIAL AND STATISTICAL INFORMATION
| | | | | | | | |
| | | Three Months Ended March 31, | |
| | | 2007 | | | 2006 | |
Flow insurance written(in millions) | | $ | 7,524 | | | $ | 5,040 | |
Structured insurance written(in millions) | | | 3,439 | | | | 3,047 | |
| | | | | | | | |
Primary new insurance written(in millions) | | $ | 10,963 | | | $ | 8,087 | |
| | | | | | | | |
| | |
Primary new risk written(in millions) | | $ | 2,920 | | | $ | 2,148 | |
| | |
Pool new insurance written(in millions)(8) | | $ | 6,188 | | | $ | 4,726 | |
| | |
Pool new risk written(in millions)(8) | | $ | 178 | | | $ | 104 | |
| | |
Product mix as a % of new insurance written: | | | | | | | | |
Above 97% LTV’s | | | 36 | % | | | 13 | % |
90.01% to 95% LTV’s | | | 21 | % | | | 21 | % |
85.01% to 90% LTV’s | | | 27 | % | | | 46 | % |
90.01% to 95% LTV’s with >= 30% coverage | | | 15 | % | | | 18 | % |
85.01% to 90% LTV’s with >= 25% coverage | | | 24 | % | | | 41 | % |
ARMs | | | 16 | % | | | 39 | % |
Monthlies | | | 95 | % | | | 97 | % |
Refinances | | | 47 | % | | | 39 | % |
Structured transactions | | | 31 | % | | | 38 | % |
| | |
Premiums written(in thousands): | | | | | | | | |
Gross premiums written | | $ | 240,430 | | | $ | 208,135 | |
Ceded premiums, net of assumed premiums | | | (41,135 | ) | | | (41,654 | ) |
Refunded premiums | | | (3,379 | ) | | | (3,007 | ) |
| | | | | | | | |
Net premiums written | | | 195,916 | | | | 163,474 | |
Change in unearned premiums | | | (2,157 | ) | | | 4,064 | |
| | | | | | | | |
Net premiums earned | | $ | 193,759 | | | $ | 167,538 | |
| | | | | | | | |
Page 5
THE PMI GROUP, INC. AND SUBSIDIARIES
U.S. MORTGAGE INSURANCE OPERATIONS(2) FINANCIAL AND STATISTICAL INFORMATION
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3/31/2007 | | | 12/31/2006 | | | 9/30/2006 | | | 6/30/2006 | | | 3/31/2006 | | | 12/31/2005 | |
Primary insurance in force(in millions) | | | | | | | | | | | | | | | | | | | | | | | | |
Flow | | $ | 87,184 | | | $ | 85,086 | | | $ | 84,405 | | | $ | 84,644 | | | $ | 85,685 | | | $ | 86,991 | |
Structured transactions | | | 19,701 | | | | 17,549 | | | | 15,877 | | | | 15,741 | | | | 15,826 | | | | 14,099 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 106,885 | | | $ | 102,635 | | | $ | 100,282 | | | $ | 100,385 | | | $ | 101,511 | | | $ | 101,090 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Primary risk in force(in millions) | | | | | | | | | | | | | | | | | | | | | | | | |
Flow | | $ | 21,837 | | | $ | 21,095 | | | $ | 20,855 | | | $ | 20,883 | | | $ | 21,102 | | | $ | 21,388 | |
Structured transactions | | | 5,138 | | | | 4,616 | | | | 4,193 | | | | 4,127 | | | | 4,147 | | | | 3,583 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 26,975 | | | $ | 25,711 | | | $ | 25,048 | | | $ | 25,010 | | | $ | 25,249 | | | $ | 24,971 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Pool risk in force(in millions)(8) | | $ | 3,373 | | | $ | 3,216 | | | $ | 2,773 | | | $ | 2,737 | | | $ | 2,666 | | | $ | 2,589 | |
| | | | | | |
Primary risk in force—credit score distribution | | | | | | | | | | | | | | | | | | | | | | | | |
Flow 620 or above | | | 93.8 | % | | | 93.7 | % | | | 93.5 | % | | | 93.3 | % | | | 93.2 | % | | | 93.0 | % |
619-575 | | | 4.9 | % | | | 5.0 | % | | | 5.2 | % | | | 5.3 | % | | | 5.4 | % | | | 5.5 | % |
574 or below | | | 1.3 | % | | | 1.3 | % | | | 1.3 | % | | | 1.4 | % | | | 1.4 | % | | | 1.5 | % |
| | | | | | |
Structured transactions 620 or above | | | 85.3 | % | | | 84.7 | % | | | 82.8 | % | | | 80.7 | % | | | 79.2 | % | | | 76.9 | % |
619-575 | | | 9.2 | % | | | 9.8 | % | | | 10.8 | % | | | 12.3 | % | | | 13.2 | % | | | 14.5 | % |
574 or below | | | 5.5 | % | | | 5.5 | % | | | 6.4 | % | | | 7.1 | % | | | 7.6 | % | | | 8.6 | % |
| | | | | | |
Total 620 or above | | | 92.2 | % | | | 92.0 | % | | | 91.7 | % | | | 91.3 | % | | | 90.9 | % | | | 90.7 | % |
619-575 | | | 5.7 | % | | | 5.9 | % | | | 6.1 | % | | | 6.4 | % | | | 6.6 | % | | | 6.8 | % |
574 or below | | | 2.1 | % | | | 2.1 | % | | | 2.2 | % | | | 2.3 | % | | | 2.5 | % | | | 2.5 | % |
| | | | | | |
Primary average loan size(in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
Flow | | $ | 142.8 | | | $ | 140.0 | | | $ | 138.3 | | | $ | 136.9 | | | $ | 135.6 | | | $ | 134.5 | |
Structured transactions | | $ | 159.2 | | | $ | 155.6 | | | $ | 151.8 | | | $ | 150.7 | | | $ | 150.7 | | | $ | 145.4 | |
Total | | $ | 145.5 | | | $ | 142.5 | | | $ | 140.3 | | | $ | 138.9 | | | $ | 137.8 | | | $ | 136.0 | |
| | | | | | |
Loss severity—primary(quarterly) | | | | | | | | | | | | | | | | | | | | | | | | |
Flow | | | 88.5 | % | | | 88.6 | % | | | 83.1 | % | | | 83.2 | % | | | 84.9 | % | | | 85.9 | % |
Structured transactions | | | 90.3 | % | | | 92.4 | % | | | 86.7 | % | | | 86.8 | % | | | 91.2 | % | | | 94.3 | % |
Total | | | 89.0 | % | | | 89.6 | % | | | 84.0 | % | | | 84.1 | % | | | 86.5 | % | | | 87.7 | % |
| | | | | | |
Persistency | | | | | | | | | | | | | | | | | | | | | | | | |
Primary persistency rate | | | 70.7 | % | | | 69.6 | % | | | 67.3 | % | | | 64.9 | % | | | 63.1 | % | | | 61.9 | % |
| | | | | | |
Primary loans, defaults and default rates | | | | | | | | | | | | | | | | | | | | | | | | |
Primary policies in force | | | 734,431 | | | | 720,347 | | | | 714,742 | | | | 722,756 | | | | 736,908 | | | | 743,533 | |
| | | | | | |
Primary loans in default | | | 39,206 | | | | 39,997 | | | | 38,573 | | | | 37,102 | | | | 37,784 | | | | 42,702 | |
| | | | | | |
Primary default rate | | | 5.34 | % | | | 5.55 | % | | | 5.40 | % | | | 5.13 | % | | | 5.13 | % | | | 5.74 | % |
Flow only default rate | | | 4.54 | % | | | 4.75 | % | | | 4.61 | % | | | 4.44 | % | | | 4.55 | % | | | 5.13 | % |
Structured transactions only default rate | | | 9.29 | % | | | 9.86 | % | | | 9.96 | % | | | 9.26 | % | | | 8.59 | % | | | 9.85 | % |
Pool default rate | | | 4.82 | % | | | 4.24 | % | | | 4.81 | % | | | 5.60 | % | | | 6.17 | % | | | 6.84 | % |
| | | | | | |
Claims paid(quarter-to-date in millions) | | | | | | | | | | | | | | | | | | | | | | | | |
Primary claims paid—flow | | $ | 46.6 | | | $ | 43.0 | | | $ | 42.6 | | | $ | 36.2 | | | $ | 37.3 | | | $ | 39.2 | |
Primary claims paid—structured transactions | | | 18.3 | | | | 15.4 | | | | 14.7 | | | | 11.3 | | | | 13.5 | | | | 12.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total primary claims paid | | | 64.9 | | | | 58.4 | | | | 57.3 | | | | 47.5 | | | | 50.8 | | | | 51.5 | |
Total pool and other | | | 4.4 | | | | 3.0 | | | | 4.7 | | | | 4.6 | | | | 4.3 | | | | 5.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total claims paid | | $ | 69.3 | | | $ | 61.4 | | | $ | 62.0 | | | $ | 52.1 | | | $ | 55.1 | | | $ | 56.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Number of primary claims paid(quarter-to-date) | | | 2,362 | | | | 2,195 | | | | 2,346 | | | | 2,038 | | | | 2,058 | | | | 2,138 | |
| | | | | | |
Average primary claim size(quarter-to-date in thousands) | | $ | 27.5 | | | $ | 26.6 | | | $ | 24.4 | | | $ | 23.3 | | | $ | 24.7 | | | $ | 24.1 | |
| | | | | | |
Captive reinsurance arrangements(year-to-date) | | | | | | | | | | | | | | | | | | | | | | | | |
Percentage of flow NIW subject to captive reinsurance arrangements | | | 49.3 | % | | | 68.8 | % | | | 71.6 | % | | | 71.3 | % | | | 69.6 | % | | | 69.0 | % |
Percentage of primary NIW subject to captive reinsurance arrangements | | | 34.1 | % | | | 50.4 | % | | | 53.5 | % | | | 51.5 | % | | | 44.8 | % | | | 54.7 | % |
Percentage of primary IIF subject to captive reinsurance arrangements | | | 51.0 | % | | | 52.9 | % | | | 53.9 | % | | | 53.3 | % | | | 53.2 | % | | | 53.4 | % |
Percentage of primary RIF subject to captive reinsurance arrangements | | | 50.8 | % | | | 53.2 | % | | | 54.4 | % | | | 53.9 | % | | | 53.9 | % | | | 54.4 | % |
| | | | | | |
Alt-A primary insurance in force(in millions) | | | | | | | | | | | | | | | | | | | | | | | | |
With FICO scores of 660 and above | | $ | 18,120 | | | $ | 15,738 | | | $ | 14,203 | | | $ | 13,216 | | | $ | 12,575 | | | $ | 11,455 | |
With FICO scores below 660 and above 619 | | | 3,652 | | | | 3,353 | | | | 3,178 | | | | 2,934 | | | | 2,783 | | | | 2,564 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Alt-A primary insurance in force | | $ | 21,772 | | | $ | 19,091 | | | $ | 17,381 | | | $ | 16,150 | | | $ | 15,358 | | | $ | 14,019 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Risk-to-capital ratio(9) | | | 8.3 to 1 | | | | 8.1 to 1 | | | | 8.2 to 1 | | | | 7.7 to 1 | | | | 8.1 to 1 | | | | 8.2 to 1 | |
Page 6
THE PMI GROUP, INC. AND SUBSIDIARIES
CMG MORTGAGE INSURANCE COMPANY FINANCIAL AND STATISTICAL INFORMATION
| | | | | | | | | | | | |
| | | March 31, 2007 | | | December 31, 2006 | | | March 31, 2006 | |
Primary new insurance written (quarter-to-date in millions) | | $ | 1,053 | | | $ | 1,064 | | | $ | 891 | |
| | | |
Primary insurance in force(in millions) | | $ | 16,670 | | | $ | 16,320 | | | $ | 15,476 | |
| | | |
Primary risk in force(in millions) | | $ | 4,085 | | | $ | 3,984 | | | $ | 3,686 | |
| | | |
Policies in force | | | 115,227 | | | | 113,832 | | | | 110,879 | |
| | | |
Persistency | | | 78.5 | % | | | 77.2 | % | | | 72.3 | % |
| | | |
Primary loans in default | | | 1,130 | | | | 1,192 | | | | 992 | |
| | | |
Primary default rate | | | 0.98 | % | | | 1.05 | % | | | 0.89 | % |
| | | |
Primary claims paid(quarter-to-date in thousands) | | $ | 2,131 | | | $ | 1,372 | | | $ | 1,200 | |
| | | |
Number of primary claims paid(quarter-to-date) | | | 75 | | | | 54 | | | | 55 | |
| | | |
Average primary claim size (quarter-to-date in thousands) | | $ | 28.4 | | | $ | 25.4 | | | $ | 21.8 | |
PMI AUSTRALIA FINANCIAL AND STATISTICAL INFORMATION
| | | | | | | | | | | | |
| | | March 31,
2007 | | | December 31,
2006 | | | March 31,
2006 | |
Net premiums written(quarter-to-date in thousands) | | $ | 38,234 | | | $ | 53,238 | | | $ | 34,640 | |
| | | |
Premiums earned(quarter-to-date in thousands) | | $ | 36,364 | | | $ | 34,167 | | | $ | 32,267 | |
| | | |
Flow insurance written(quarter-to-date in millions) | | $ | 4,300 | | | $ | 5,836 | | | $ | 4,152 | |
RMBS insurance written(quarter-to-date in millions) | | | 3,284 | | | | 3,078 | | | | 5,291 | |
| | | | | | | | | | | | |
New insurance written(quarter-to-date in millions) | | $ | 7,584 | | | $ | 8,914 | | | $ | 9,443 | |
| | | | | | | | | | | | |
| | | |
Insurance in force(in millions) | | $ | 156,698 | | | $ | 148,765 | | | $ | 123,050 | |
| | | |
Risk in force(in millions) | | $ | 143,207 | | | $ | 135,541 | | | $ | 112,199 | |
| | | |
Policies in force | | | 1,070,974 | | | | 1,055,057 | | | | 1,026,260 | |
| | | |
Loans in default | | | 3,063 | | | | 2,281 | | | | 1,520 | |
| | | |
Default rate | | | 0.29 | % | | | 0.22 | % | | | 0.15 | % |
| | | |
Claims paid(quarter-to-date in thousands) | | $ | 8,389 | | | $ | 6,584 | | | $ | 1,224 | |
| | | |
Number of claims paid(quarter-to-date) | | | 126 | | | | 118 | | | | 31 | |
| | | |
Average claim size(quarter-to-date in thousands) | | $ | 66.6 | | | $ | 55.8 | | | $ | 39.5 | |
PMI EUROPE FINANCIAL AND STATISTICAL INFORMATION
| | | | | | | | | |
| | | March 31,
2007 | | December 31,
2006 | | March 31,
2006 |
| | | |
Net premiums written(quarter-to-date in thousands) | | $ | 3,404 | | $ | 3,213 | | $ | 2,754 |
| | | |
Premiums earned(quarter-to-date in thousands) | | $ | 3,579 | | $ | 4,212 | | $ | 3,888 |
| | | |
New insurance written(quarter-to-date in millions) | | $ | 136 | | $ | 160 | | $ | 32 |
| | | |
New credit default swaps written(quarter-to-date in millions) | | $ | — | | $ | 5,994 | | $ | 629 |
| | | |
New reinsurance written(quarter-to-date in millions) | | $ | 504 | | $ | 1,028 | | $ | 627 |
| | | |
Insurance in force(in millions) | | $ | 48,121 | | $ | 48,467 | | $ | 39,254 |
| | | |
Risk in force(in millions) | | $ | 3,824 | | $ | 3,850 | | $ | 2,760 |
| | | |
Claims paid including credit default swaps(quarter-to-date in thousands) | | $ | 1,547 | | $ | 1,095 | | $ | 644 |
Page 7
THE PMI GROUP, INC. AND SUBSIDIARIES
APPENDIX A—QUARTERLY FINANCIAL INFORMATION
PMI AUSTRALIA QUARTERLY FINANCIAL INFORMATION
| | | | | | | | | | | | | | | | | | | | |
| | | 2007 | | | 2006 | |
| | | 1st Quarter | | | 4th Quarter | | | 3rd Quarter | | | 2nd Quarter | | | 1st Quarter | |
| | | | | | (Australian $ in thousands, unless otherwise noted) | |
Income Statement Components—Quarter Ended | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Premiums earned | | $ | 46,240 | | | $ | 44,341 | | | $ | 52,634 | | | $ | 52,399 | | | $ | 43,644 | |
Net investment income | | $ | 20,529 | | | $ | 19,453 | | | $ | 18,886 | | | $ | 17,529 | | | $ | 16,712 | |
Net realized investment (losses) gains | | $ | (97 | ) | | $ | (387 | ) | | $ | 3,708 | | | $ | (262 | ) | | $ | 164 | |
Change in fair value of foreign currency put options | | $ | (1,168 | ) | | $ | (109 | ) | | $ | (638 | ) | | $ | (2,640 | ) | | $ | 1,855 | |
Total losses and expenses | | $ | 33,130 | | | $ | 37,656 | | | $ | 28,610 | | | $ | 24,843 | | | $ | 15,789 | |
Net income | | $ | 22,953 | | | $ | 18,073 | | | $ | 32,688 | | | $ | 29,332 | | | $ | 32,546 | |
| | | | | |
Net income(U.S. $ in thousands) | | $ | 18,047 | | | $ | 13,830 | | | $ | 24,732 | | | $ | 21,923 | | | $ | 24,054 | |
| | | | | |
Balance Sheet Components | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Assets | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Cash and investments, at fair value | | $ | 1,375,824 | | | $ | 1,358,525 | | | $ | 1,314,487 | | | $ | 1,257,618 | | | $ | 1,219,179 | |
Total assets | | $ | 1,476,400 | | | $ | 1,442,781 | | | $ | 1,396,072 | | | $ | 1,336,748 | | | $ | 1,302,982 | |
| | | | | |
Liabilities and Shareholder’s Equity | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Reserve for losses and LAE | | $ | 48,439 | | | $ | 38,581 | | | $ | 24,185 | | | $ | 16,150 | | | $ | 11,489 | |
Unearned premiums | | $ | 469,020 | | | $ | 466,644 | | | $ | 441,936 | | | $ | 431,864 | | | $ | 419,207 | |
Shareholder’s equity | | $ | 909,665 | | | $ | 885,595 | | | $ | 874,975 | | | $ | 841,116 | | | $ | 822,918 | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | |
PMI EUROPE QUARTERLY FINANCIAL INFORMATION | |
| | | | | | | | | | | | | | | | | | | | |
| | |
| | | 2007 | | | 2006 | |
| | | 1st Quarter | | | 4th Quarter | | | 3rd Quarter | | | 2nd Quarter | | | 1st Quarter | |
| | | | | | (Euro € in thousands, unless otherwise noted) | |
Income Statement Components—Quarter Ended | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Premiums earned | | € | 2,729 | | | € | 3,264 | | | € | 3,258 | | | € | 3,108 | | | € | 3,232 | |
Income from credit default swaps | | € | 1,397 | | | € | 2,067 | | | € | 769 | | | € | 1,691 | | | € | 1,356 | |
Net investment income | | € | 1,837 | | | € | 1,803 | | | € | 1,891 | | | € | 1,797 | | | € | 1,898 | |
Net realized investment gains | | € | 87 | | | € | 35 | | | € | 511 | | | € | 361 | | | € | 17 | |
Change in fair value of foreign currency put options | | € | (76 | ) | | € | — | | | € | (2 | ) | | € | (42 | ) | | € | (43 | ) |
Total losses and expenses | | € | 2,566 | | | € | 3,001 | | | € | 4,026 | | | € | 2,635 | | | € | 2,692 | |
Net income | | € | 2,272 | | | € | 2,718 | | | € | 1,559 | | | € | 2,780 | | | € | 2,451 | |
| | | | | |
Net income(U.S. $ in thousands) | | $ | 2,979 | | | $ | 3,506 | | | $ | 1,987 | | | $ | 3,498 | | | $ | 2,949 | |
| | | | | |
Balance Sheet Components | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Assets | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Cash and investments, at fair value | | € | 166,322 | | | € | 163,148 | | | € | 162,858 | | | € | 160,424 | | | € | 182,304 | |
Total assets | | € | 188,090 | | | € | 184,404 | | | € | 182,503 | | | € | 174,624 | | | € | 192,990 | |
| | | | | |
Liabilities and Shareholder’s Equity | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Reserve for losses and LAE | | € | 13,170 | | | € | 13,567 | | | € | 13,340 | | | € | 12,521 | | | € | 12,581 | |
Unearned premiums | | € | 15,813 | | | € | 15,943 | | | € | 16,703 | | | € | 17,648 | | | € | 19,077 | |
Shareholder’s equity | | € | 143,331 | | | € | 141,419 | | | € | 138,766 | | | € | 134,518 | | | € | 132,900 | |
Page 8
THE PMI GROUP, INC. AND SUBSIDIARIES
APPENDIX B- BUSINESS SEGMENTS RESULTS OF OPERATIONS BY QUARTER
| | | | | | | | | | | | | | | | | | | | |
| | | 2007 | | | 2006 | |
| | | 1st Quarter | | | 4th Quarter | | | 3rd Quarter | | | 2nd Quarter | | | 1st Quarter | |
| | | (Dollars in thousands) | |
U.S. Mortgage Insurance Operations(2) | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net premiums written | | $ | 195,916 | | | $ | 175,730 | | | $ | 160,468 | | | $ | 158,904 | | | $ | 163,474 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | |
Premiums earned | | $ | 193,759 | | | $ | 184,511 | | | $ | 168,118 | | | $ | 167,826 | | | $ | 167,538 | |
Net investment income | | | 28,322 | | | | 26,071 | | | | 27,082 | | | | 27,064 | | | | 25,676 | |
Equity in earnings from unconsolidated subsidiaries(1) | | | 4,861 | | | | 5,077 | | | | 5,010 | | | | 5,729 | | | | 4,492 | |
Net realized investment gains | | | 2,267 | | | | 1,627 | | | | 1,620 | | | | 305 | | | | 237 | |
Other (loss) income | | | (13 | ) | | | (30 | ) | | | (22 | ) | | | 7 | | | | (23 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total revenues | | | 229,196 | | | | 217,256 | | | | 201,808 | | | | 200,931 | | | | 197,920 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Losses and expenses | | | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses | | | 92,784 | | | | 72,039 | | | | 67,699 | | | | 64,153 | | | | 59,147 | |
Amortization of deferred policy acquisition costs | | | 12,582 | | | | 12,544 | | | | 12,830 | | | | 13,162 | | | | 13,442 | |
Other underwriting expenses and operating expenses | | | 27,661 | | | | 28,956 | | | | 23,618 | | | | 22,970 | | | | 25,911 | |
Field office restructuring | | | — | | | | — | | | | — | | | | — | | | | 1,955 | |
Litigation (recovery) settlement | | | — | | | | (1,840 | ) | | | (999 | ) | | | — | | | | — | |
Interest expense | | | — | | | | — | | | | 1 | | | | 1 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total losses and expenses | | | 133,027 | | | | 111,699 | | | | 103,149 | | | | 100,286 | | | | 100,455 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income before income taxes | | | 96,169 | | | | 105,557 | | | | 98,659 | | | | 100,645 | | | | 97,465 | |
Income taxes | | | 27,293 | | | | 28,349 | | | | 27,819 | | | | 28,480 | | | | 27,360 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 68,876 | | | $ | 77,208 | | | $ | 70,840 | | | $ | 72,165 | | | $ | 70,105 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
International Operations(3) | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net premiums written | | $ | 43,382 | | | $ | 58,129 | | | $ | 51,942 | | | $ | 52,900 | | | $ | 38,420 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | |
Premiums earned | | $ | 42,382 | | | $ | 41,219 | | | $ | 46,766 | | | $ | 45,801 | | | $ | 38,686 | |
Income from credit default swaps | | | 1,828 | | | | 2,687 | | | | 978 | | | | 2,128 | | | | 1,638 | |
Net investment income | | | 19,164 | | | | 17,990 | | | | 17,442 | | | | 15,625 | | | | 14,785 | |
Net realized investment gains (losses) | | | 37 | | | | (244 | ) | | | 3,452 | | | | 252 | | | | 142 | |
Other income (loss) | | | 389 | | | | (189 | ) | | | (40 | ) | | | (1,910 | ) | | | 1,393 | |
| | | | | | | | | | | | | | | | | | | | |
Total revenues | | | 63,800 | | | | 61,463 | | | | 68,598 | | | | 61,896 | | | | 56,644 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Losses and expenses | | | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses | | | 16,536 | | | | 18,492 | | | | 11,907 | | | | 7,708 | | | | 1,792 | |
Amortization of deferred policy acquisition costs | | | 3,761 | | | | 3,748 | | | | 3,871 | | | | 4,632 | | | | 3,545 | |
Other underwriting and operating expenses | | | 10,573 | | | | 11,064 | | | | 11,205 | | | | 10,461 | | | | 9,789 | |
Interest expense | | | 6 | | | | 1 | | | | 124 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total losses and expenses | | | 30,876 | | | | 33,305 | | | | 27,107 | | | | 22,801 | | | | 15,126 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income before income taxes | | | 32,924 | | | | 28,158 | | | | 41,491 | | | | 39,095 | | | | 41,518 | |
Income taxes | | | 9,798 | | | | 8,193 | | | | 12,048 | | | | 13,598 | | | | 12,909 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 23,126 | | | $ | 19,965 | | | $ | 29,443 | | | $ | 25,497 | | | $ | 28,609 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Financial Guaranty(4) | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net premiums written | | $ | 4,741 | | | $ | 1,590 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | |
Premiums Earned | | $ | 207 | | | $ | 1 | | | $ | — | | | $ | — | | | $ | — | |
Equity in earnings from unconsolidated subsidiaries(1) | | | 31,703 | | | | 30,953 | | | | 26,549 | | | | 26,476 | | | | 23,235 | |
Net investment income | | | 2,321 | | | | 2,036 | | | | (1 | ) | | | 2 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total revenues | | | 34,231 | | | | 32,990 | | | | 26,548 | | | | 26,478 | | | | 23,235 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Losses and expenses | | | | | | | | | | | | | | | | | | | | |
Amortization of deferred policy acquisition costs | | | 102 | | | | 1 | | | | — | | | | — | | | | — | |
Other underwriting and operating expenses | | | 454 | | | | 716 | | | | — | | | | — | | | | — | |
Interest expense(11) | | | 731 | | | | 569 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total losses and expenses | | | 1,287 | | | | 1,286 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income before income taxes | | | 32,944 | | | | 31,704 | | | | 26,548 | | | | 26,478 | | | | 23,235 | |
Income taxes | | | 3,080 | | | | 3,281 | | | | 2,820 | | | | 2,469 | | | | 2,137 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 29,864 | | | $ | 28,423 | | | $ | 23,728 | | | $ | 24,009 | | | $ | 21,098 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Corporate and Other(5) | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net premiums written | | $ | 12 | | | $ | 19 | | | $ | 16 | | | $ | 11 | | | $ | 10 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | |
Premiums earned | | $ | 13 | | | $ | 12 | | | $ | 19 | | | $ | 16 | | | $ | 17 | |
Net investment income | | | 2,832 | | | | 3,643 | | | | 5,157 | | | | 6,324 | | | | 6,406 | |
Equity in (losses) earnings from unconsolidated subsidiaries(1) | | | (55 | ) | | | (124 | ) | | | (68 | ) | | | 82 | | | | (102 | ) |
Net realized investment (losses) gains | | | (726 | ) | | | (248 | ) | | | (4,346 | ) | | | (1 | ) | | | (39 | ) |
Other income | | | 1,706 | | | | 2,829 | | | | 3,204 | | | | 3,712 | | | | 3,777 | |
| | | | | | | | | | | | | | | | | | | | |
Total revenues | | | 3,770 | | | | 6,112 | | | | 3,966 | | | | 10,133 | | | | 10,059 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Losses and expenses | | | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses | | | — | | | | 1 | | | | (3 | ) | | | — | | | | — | |
Other underwriting expenses and operating expenses(6) | | | 24,013 | | | | 27,916 | | | | 21,484 | | | | 19,442 | | | | 22,865 | |
Net costs to exchange and extinguish long-term debt | | | — | | | | 1,169 | | | | 875 | | | | — | | | | — | |
Interest expense | | | 7,522 | | | | 11,753 | | | | 9,361 | | | | 8,066 | | | | 8,179 | |
| | | | | | | | | | | | | | | | | | | | |
Total losses and expenses | | | 31,535 | | | | 40,839 | | | | 31,717 | | | | 27,508 | | | | 31,044 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Loss before income tax benefits | | | (27,765 | ) | | | (34,727 | ) | | | (27,751 | ) | | | (17,375 | ) | | | (20,985 | ) |
Income tax benefits | | | (7,932 | ) | | | (9,581 | ) | | | (7,978 | ) | | | (5,319 | ) | | | (6,521 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net loss | | $ | (19,833 | ) | | $ | (25,146 | ) | | $ | (19,773 | ) | | $ | (12,056 | ) | | $ | (14,464 | ) |
| | | | | | | | | | | | | | | | | | | | |
Page 9
THE PMI GROUP, INC. AND SUBSIDIARIES
APPENDIX C—PMI AUSTRALIA FINANCIAL AND STATISTICAL INFORMATION
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3/31/2007 | | | 12/31/2006 | | | 9/30/2006 | | | 6/30/2006 | | | 3/31/2006 | | | 12/31/2005 | |
Insurance in Force(U.S. $ in millions) | | | | | | | | | | | | | | | | | | | | | | | | |
Flow | | $ | 98,630 | | | $ | 94,529 | | | $ | 86,026 | | | $ | 86,215 | | | $ | 81,503 | | | $ | 82,236 | |
RMBS | | | 58,068 | | | | 54,236 | | | | 48,975 | | | | 49,314 | | | | 41,547 | | | | 37,679 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 156,698 | | | $ | 148,765 | | | $ | 135,001 | | | $ | 135,529 | | | $ | 123,050 | | | $ | 119,915 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Risk in Force(U.S. $ in millions) | | | | | | | | | | | | | | | | | | | | | | | | |
Flow | | $ | 85,349 | | | $ | 81,490 | | | $ | 74,328 | | | $ | 74,956 | | | $ | 70,773 | | | $ | 71,160 | |
RMBS | | | 57,858 | | | | 54,051 | | | | 48,831 | | | | 49,183 | | | | 41,426 | | | | 37,591 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 143,207 | | | $ | 135,541 | | | $ | 123,159 | | | $ | 124,139 | | | $ | 112,199 | | | $ | 108,751 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average loan size(U.S. $ in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
Flow | | $ | 150.7 | | | $ | 145.6 | | | $ | 134.8 | | | $ | 128.2 | | | $ | 122.5 | | | $ | 125.0 | |
RMBS | | $ | 139.4 | | | $ | 133.7 | | | $ | 125.9 | | | $ | 122.6 | | | $ | 115.1 | | | $ | 116.3 | |
Total | | $ | 146.3 | | | $ | 141.0 | | | $ | 131.5 | | | $ | 126.1 | | | $ | 119.9 | | | $ | 122.1 | |
| | | | | | |
Loss severity (quarterly) | | | | | | | | | | | | | | | | | | | | | | | | |
Flow | | | 22.1 | % | | | 20.5 | % | | | 21.9 | % | | | 18.2 | % | | | 15.8 | % | | | 15.7 | % |
RMBS | | | 16.6 | % | | | 15.5 | % | | | 21.7 | % | | | 1.6 | % | | | 3.9 | % | | | 11.3 | % |
Total | | | 21.7 | % | | | 19.9 | % | | | 21.9 | % | | | 18.2 | % | | | 15.3 | % | | | 15.6 | % |
| | | | | | |
| Primary loans, defaults and default rates | | | | | | | | | | | | | | | | | | | | | | | | |
Policies in force—Flow | | | 654,296 | | | | 649,261 | | | | 638,139 | | | | 672,347 | | | | 665,336 | | | | 657,713 | |
Policies in force—RMBS | | | 416,678 | | | | 405,796 | | | | 388,851 | | | | 402,271 | | | | 360,924 | | | | 324,019 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Policies in force—Total | | | 1,070,974 | | | | 1,055,057 | | | | 1,026,990 | | | | 1,074,618 | | | | 1,026,260 | | | | 981,732 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loans in default—Flow | | | 2,642 | | | | 2,021 | | | | 1,826 | | | | 1,478 | | | | 1,314 | | | | 1,094 | |
Loans in default —RMBS | | | 421 | | | | 260 | | | | 273 | | | | 253 | | | | 206 | | | | 170 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans in default —Total | | | 3,063 | | | | 2,281 | | | | 2,099 | | | | 1,731 | | | | 1,520 | | | | 1,264 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Default rate —Flow | | | 0.40 | % | | | 0.31 | % | | | 0.29 | % | | | 0.22 | % | | | 0.20 | % | | | 0.17 | % |
Default rate —RMBS | | | 0.10 | % | | | 0.06 | % | | | 0.07 | % | | | 0.06 | % | | | 0.06 | % | | | 0.05 | % |
Default rate —Total | | | 0.29 | % | | | 0.22 | % | | | 0.20 | % | | | 0.16 | % | | | 0.15 | % | | | 0.13 | % |
| | | | | | |
Net claims paid(quarter to date in U.S. $ in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
Net claims paid—Flow | | $ | 7,923 | | | $ | 5,999 | | | $ | 4,123 | | | $ | 3,179 | | | $ | 1,211 | | | $ | 1,421 | |
Net claims paid—RMBS | | | 466 | | | | 585 | | | | 411 | | | | 2 | | | | 13 | | | | 33 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net claims paid—Total | | | 8,389 | | | | 6,584 | | | | 4,534 | | | | 3,181 | | | | 1,224 | | | | 1,454 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Number of claims paid—Flow | | | 115 | | | | 107 | | | | 72 | | | | 72 | | | | 30 | | | | 36 | |
Number of claims paid—RMBS | | | 11 | | | | 11 | | | | 8 | | | | 1 | | | | 1 | | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Number of claims paid—Total | | | 126 | | | | 118 | | | | 80 | | | | 73 | | | | 31 | | | | 37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average claim size- Flow | | $ | 68.9 | | | $ | 56.1 | | | $ | 57.3 | | | $ | 44.2 | | | $ | 40.4 | | | $ | 39.5 | |
Average claim size- RMBS | | $ | 42.4 | | | $ | 53.2 | | | $ | 51.4 | | | $ | 1.5 | | | $ | 13.6 | | | $ | 33.4 | |
Average claim size- Total | | $ | 66.6 | | | $ | 55.8 | | | $ | 56.7 | | | $ | 43.6 | | | $ | 39.5 | | | $ | 39.3 | |
| | | | | | |
| Combined Ratio | | | | | | | | | | | | | | | | | | | | | | | | |
Loss Ratio | | | 44.4 | % | | | 52.1 | % | | | 26.4 | % | | | 17.3 | % | | | 3.8 | % | | | 5.3 | % |
Expense Ratio | | | 28.3 | % | | | 21.4 | % | | | 23.6 | % | | | 24.2 | % | | | 30.1 | % | | | 28.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Combined Ratio | | | 72.7 | % | | | 73.5 | % | | | 50.0 | % | | | 41.5 | % | | | 33.9 | % | | | 33.3 | % |
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