PMI Group Reports 20% Gain for First Quarter per Share Operating Earnings

Apr 18, 2001, 01:00 ET from PMI Group, Inc.

    SAN FRANCISCO, April 18 /PRNewswire/ -- The PMI Group, Inc. (NYSE:   PMI)
 today announced operating earnings per share (excluding capital losses) of
 $1.60, an increase in per share earnings of 20 percent over the comparable
 period in 2000.  Net income grew to $71.5 million for the quarter, from
 $60.0 million for first quarter 2000.
     "We are excited with our strong start in 2001," said W. Roger Haughton,
 Chairman and CEO of PMI.  "Very good earnings per share growth, a record first
 quarter volume of new insurance written and credit quality were key components
 of our excellent first quarter results.  We are pleased with the strength of
 the purchase mortgage market in the U.S. and our results reflect that market
 strength."
     Combined(A) new primary mortgage insurance written in first quarter 2001
 was $9.3 billion, compared to $7.3 billion in first quarter 2000.  Secondary
 market transactions accounted for $0.1 billion in first quarter 2001 as
 compared to $1 billion in first quarter 2000.
     Domestic(B) new primary mortgage insurance written was $8.0 billion
 (including $0.1 billion in secondary market transactions) for first quarter
 2001 as opposed to $6.4 billion (including $1 billion in secondary market
 transactions) for the same period in 2000.
     Combined primary mortgage insurance in force grew to $125.2 billion at
 March 31, 2001, a 10.6 percent increase from the $113.9 billion at
 March 31, 2000.  Domestic primary mortgage insurance in force and mortgage
 risk in force grew to $105.1 billion and $25.6 billion respectively at
 March 31, 2001, compared to $94.9 billion and $23.1 billion respectively at
 March 31, 2000.  GSE pool risk grew from $0.7 billion to $0.8 billion, while
 other risk in force grew from $0.1 billion to $0.3 billion between first
 quarter 2000 and first quarter 2001.  The domestic primary mortgage insurance
 persistency rate, or the percentage of primary mortgage insurance remaining in
 force compared to one year ago, was 78.0 percent at March 31, 2001, compared
 to 80.5 percent at December 31, 2000 and 76.4 percent at March 31, 2000.
     Consolidated revenues for the Company in the quarter were
 $204.6 million compared to $179.4 million for the same period a year ago.
 The growth in revenues for the quarter was led by consolidated net premiums
 earned of $170.1 million, which increased 14.4 percent, and investment income
 of $31.2 million, which increased 15.3 percent over first quarter 2000.
     Consolidated losses and loss adjustment expenses totaled $23.0 million for
 the quarter, compared to $28.2 million for the comparable period in 2000.
 Consolidated amortization of policy acquisition costs and other operating
 expenses for first quarter 2001 were $74.9 million compared to
 $59.6 million in first quarter 2000.
     The percentage of the Company's domestic primary mortgage insurance loans
 in default as of March 31, 2001 was 2.09 percent compared to 2.07 percent at
 December 31, 2000 and 1.90 percent at March 31, 2000.  Excluding CMG, the
 percentage of primary mortgage insurance loans in default in PMI's U.S.
 mortgage insurance operations was 2.22 percent at March 31, 2001, compared to
 2.21 percent at December 31, 2000 and 2.01 percent at March 31, 2000.
     PMI's U.S. mortgage insurance operations(C) reported net income of
 $71.1 million and net premiums earned of $132.0 million for the quarter
 compared to $57.5 million and $120.5 million respectively in the comparable
 period in 2000.
     Primary direct claims paid by U.S. mortgage insurance operations
 (excluding CMG) totaled $18.5 million for first quarter 2001, compared to
 $19.2 million for first quarter 2001, a decrease of 3.6 percent.  Average
 primary claim size was $20,628, compared to $20,491 for the prior year period.
     PMI Australia, an indirect wholly owned subsidiary, reported total revenue
 of $8.9 million and net income of $4.3 million for the quarter, with net
 premiums earned of $7.1 million.  The comparable figures for first quarter
 2000 (which only reflect two months of results due to a change in accounting
 period for foreign operations that took place in first quarter 2000) were
 $8.9 million in revenue, $4.4 in net income and $5.6 million in premiums
 earned.  Losses and loss adjustment expenses for PMI Australia were
 $1.0 million for the quarter, while underwriting and other expenses were
 $1.6 million as compared to $0.4 million and $1.5 million respectively for
 first quarter 2000.  (Consolidated results for PMI Australia were impacted by
 a decline in the exchange rate between the U.S. and Australian currencies.
 Between first quarter 2000 and first quarter 2001, the Australian dollar
 declined from an average of $0.64 U.S. dollar to $0.55 U.S. dollar.)
     American Pioneer Title Insurance Company (APTIC), the Company's wholly
 owned title insurance subsidiary, reported total revenue of $31.5 million and
 net income for first quarter 2001 of $1.5 million, compared to
 $23.1 million and $1.4 million respectively in the same period a year ago.
 APTIC's premiums earned for the quarter totaled $31 million, compared to
 $22.6 million for first quarter 2000.  APTIC reported losses and loss
 adjustment expenses of $0.8 million for the quarter and underwriting and other
 expenses of $28.5 million compared to $0.2 million and $20.8 million
 respectively in the prior year period.
     CMG, PMI's joint venture with CUNA Mutual, earned $4.4 million in the
 quarter, compared to $3.6 million in the comparable period in 2000.
     The PMI Group, Inc. is headquartered in San Francisco, California and,
 through its subsidiary, PMI Mortgage Insurance Co., is one of the largest
 private mortgage insurers in the United States.  Private mortgage insurance
 protects mortgage lenders against potential losses in the event of borrower
 default.  By covering default risk on residential first mortgage loans,
 mortgage insurance facilitates the sale of mortgages in the secondary mortgage
 market.  In addition, private mortgage insurance expands homeownership
 opportunities by enabling borrowers to purchase homes with down payments of
 less than 20 percent.  The PMI Group, Inc., through its subsidiaries, also
 provides private mortgage insurance in Australia, New Zealand and the European
 Union as well as mortgage guaranty reinsurance in Hong Kong.  The PMI Group,
 Inc. is a leader in mortgage risk management technology, providing various
 products and services to the home mortgage finance industry as well as title
 insurance.
     The PMI Group, Inc. is an advocate of affordable housing and supports a
 number of initiatives and organizations that foster greater access to
 affordable housing in the United States, including Habitat for Humanity,
 Neighborhood Housing Services of America, Native American Indian Housing
 Council and the Unity Council.
     This release can be accessed through the World Wide Web at
 www.pmigroup.com or a fax copy of this release can be obtained by dialing
 800-758-5804, entering The PMI Group, Inc. company code no. 706963 when
 prompted, and following the automated prompts.
     You may listen to PMI's conference call to discuss the first quarter
 earnings results at 12:00 noon Eastern, 9:00 a.m. Pacific time on
 April 18, 2001 by going to www.pmigroup.com/investor relations.  A replay of
 PMI's call can be heard and seen, beginning approximately two hours after the
 call, by accessing PMI's website (as indicated above).  In addition, a
 transcript will be posted approximately 72 hours after the call.  This will be
 accessible for two weeks following the call.
 
     Cautionary Statement:  Any of Company's statements in this press release
 and accompanying materials 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
 including, but not limited to, the following factors that could cause the
 Company's actual results to differ materially from those expressed herein:
     Changes in economic conditions, including economic recessions or
 slowdowns, declining housing values, higher unemployment rates, deteriorating
 borrower credit, changes in interest rates, increases in refinancing activity
 caused by declining interest rates, or combinations of these factors, could
 negatively affect the purchase mortgage market and/or reduce the demand for
 mortgage insurance. A decrease in persistency, resulting from policy
 cancellations of older books of business, could materially impact the
 Company's financial results of operations.  While stable or rising interest
 rates may positively contribute to the persistency rate, declining interest
 rates could adversely affect the Company's persistency rate, its premium yield
 and its financial condition and results of operations.  Changes in economic
 conditions also could cause the number and severity of claims on policies
 issued by PMI to increase and this could materially adversely affect the
 Company's financial condition and results of operations.
     The performance of the Company's strategic investments could materially
 and adversely be affected by changes in the real estate, mortgage lending,
 mortgage servicing and financial guaranty markets; future movements in
 interest rates; the ability of those entities to execute future business
 plans; and PMI's dependence upon management to operate those companies in
 which PMI does not own a controlling share.
     Any or all of these factors could affect the Company and cause its
 performance to differ materially from a forward-looking statement.  Other
 risks and uncertainties that could affect the Company are discussed in PMI's
 various Securities and Exchange Commission filings.
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
 
        FINANCIAL AND OPERATING RESULTS FOR PERIOD ENDING MARCH 31, 2001
 
                                    Contents
 
      Consolidated Statements of Operations
      Consolidated Balance Sheet
      Business Segments
      U.S. Mortgage Insurance Results of Operations
      U.S. Mortgage Insurance Balance Sheet
      U.S. Mortgage Insurance Operations Loss Reserves
      U.S. Mortgage Insurance Operations Expense Analysis
      U.S. Mortgage Insurance Operations Statistical Information
      U.S. Mortgage Insurance Operations and CMG Combined Statistical
       Information
      Title Insurance Results of Operations and Balance Sheet
      International Mortgage Insurance Results of Operations and Balance Sheet
 
     Please refer to the following when noted:
     (A) Company obligated mandatory redeemable preferred capital securities of
         subsidiary trust holding solely junior subordinated deferrable
         interest debentures of the Company.
     (B) The U.S. Mortgage Insurance operations include the operating results
         of PMI Mortgage Insurance Co. ("PMI"), Residential Guaranty Co.
         ("RGC"), PMI Mortgage Guaranty Co. ("PMG"), Residential Insurance Co.
         ("RIC"), TPG Insurance Co. ("TIC"), TPG Segregated Portfolio Co.
         ("TSP") and Pinebrook.  In addition, CMG is included under the equity
         earnings method of accounting.  CMG includes CMG Mortgage Insurance
         Company, CMG Mortgage Reinsurance Company and CMG Mortgage Assurance
         Company.
     (C) Effective January 1, 2000, the Company changed its accounting policy
         for foreign operations to report results from foreign subsidiaries and
         affiliates on a one month lag from domestic operations.
     (D) International Mortgage Insurance operations includes PMI Mortgage
         Insurance Ltd ("PMI Ltd"), which was acquired by PMI on August 6, 1999
         and operates in Australia and New Zealand.  Also includes PMI Mortgage
         Insurance Company Limited ("PMI Europe"), which was formed in
         February 2001 and located in Dublin, Ireland.  Financial results of
         International operations are subject to currency rate risk.
     (E) Excludes litigation settlement charges of $0.08 per share after tax.
     (F) Represents statutory risk to capital ratio for PMI Mortgage Insurance
         Co.
     (G) CMG operating statistical amounts are included at 100%
     (H) Includes $10.0 million of commercial paper issued by PG&E, which filed
         for bankruptcy protection on April 6, 2001.
         The obligation is currently in default, however, interest payments are
         current through March 31, 2001.
 
     Certain prior year amounts have been reclassified to conform to current
 year presentation.
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                                  Three Months Ended March 31,
                                                     2001              2000
                                                     (Dollars in thousands,
                                                      except per share data)
 
     Net premiums written                          $171,199          $145,610
 
     Revenues
        Premiums earned                            $170,132          $148,716
        Investment income                            31,232            27,083
        Net realized investment gains
         (losses)                                      (991)              768
        Other income                                  4,200             2,851
 
          Total revenues                            204,573           179,418
 
     Losses and expenses
        Losses and loss adjustment
         expenses                                    23,008            28,223
        Amortization of policy acquisition
         costs                                       20,383            20,709
        Other underwriting and operating
         expenses                                    54,480            38,893
        Interest expense                              2,700             2,370
        Distributions on preferred capital
         securities(A)                                2,077             2,077
 
          Total losses and expenses                 102,648            92,272
 
     Income before income taxes                     101,925            87,146
 
     Income tax expense                              30,394            27,156
 
     Net income                                     $71,531           $59,990
 
     Diluted weighted average common
      shares outstanding (shares in thousands)       45,102            44,767
 
     Diluted net income per share                     $1.59             $1.34
 
     Diluted operating income per share               $1.60             $1.33
 
 
 
                          CONSOLIDATED BALANCE SHEETS
 
                                      March 31,     December 31,    March 31,
                                        2001           2000           2000
                                               (Dollars in thousands,
                                               except per share data)
      Assets
         Cash and investments, at
          fair value                  $2,182,640(H)  $2,100,193(H)  $1,915,194
         Reinsurance recoverable and
          prepaid premiums                53,377         51,328         55,507
         Deferred policy acquisition
          costs                           67,270         67,009         68,827
         Other assets                    184,972        174,127        133,606
 
          Total assets                $2,488,259     $2,392,657     $2,173,134
 
      Liabilities
         Reserve for losses and loss
          adjustment expenses           $294,341       $295,089       $287,073
         Unearned premiums               171,751        170,866        174,949
         Long-term debt                  136,730        136,819        143,269
         Other liabilities               216,602        191,563        199,517
 
          Total liabilities              819,424        794,337        804,808
 
       Redeemable preferred capital
        securities (A)                    99,117         99,109         99,083
 
      Shareholders' equity             1,569,718      1,499,211      1,269,243
 
          Total liabilities and
           shareholders' equity       $2,488,259     $2,392,657     $2,173,134
 
      Book value per share                $35.40         $33.83         $28.50
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
                               BUSINESS SEGMENTS
 
                                    Three Months Ended March 31, 2001
                                         (Dollars in thousands)
 
                                       Inter-
                            U.S.      national
                          Mortgage    Mortgage                          Consol-
                         Insurance    Insurance     Title               idated
                         Operations   Operations  Insurance   Other     Total
                             (B)        (C,D)
 
     Premiums earned      $132,015      $7,127    $30,990       $--    $170,132
 
     Net underwriting
      income (expense)     $77,965      $4,547     $1,768   $(7,817)    $76,463
 
     Net income (loss)     $71,127      $4,490     $1,500   $(5,586)    $71,531
 
     Total assets       $2,015,326    $261,467    $53,415  $158,051  $2,488,259
 
                                   Three Months Ended March 31, 2000
                                         (Dollars in thousands)
 
                                       Inter-
                            U.S.      national
                          Mortgage    Mortgage
                          Insurance  Insurance     Title           Consolidated
                         Operations  Operations  Insurance   Other     Total
                              (B)       (C,D)
 
     Premiums earned       $120,536    $5,590    $22,590        $--    $148,716
 
     Net underwriting
      income (expense)      $59,530    $3,719     $1,531    $(1,037)    $63,743
 
     Net income (loss)      $57,480    $4,413     $1,390    $(3,293)    $59,990
 
     Total assets        $1,827,103  $177,799    $47,785   $120,447  $2,173,134
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
                U.S. MORTGAGE INSURANCE RESULTS OF OPERATIONS(B)
 
                                                 Three Months Ended March 31,
                                                    2001              2000
                                                    (Dollars in thousands)
 
     Net premiums written                          $129,791          $116,986
 
     Revenues
        Premiums earned                            $132,015          $120,536
        Investment income                            22,521            21,165
        Net realized investment losses                 (204)              (76)
        Equity earnings - CMG                         2,278             1,775
        Other income                                    195                --
 
         Total revenues                             156,805           143,400
 
     Losses and expenses
        Losses and loss adjustment
         expenses                                    21,215            27,588
        Amortization of policy acquisition
         costs                                       19,430            20,398
        Other operating expenses                     13,600            13,033
 
         Total losses and expenses                   54,245            61,019
 
     Income before income taxes                     102,560            82,381
 
     Income tax expense                              31,433            24,901
 
     Net income                                     $71,127           $57,480
 
     Ratios
     Gross expense ratio                              24.9%             27.3%
     Net expense ratio                                25.4%             28.5%
     Loss ratio                                       16.1%             22.9%
     Combined ratio                                   41.5%             51.4%
 
                   U.S. MORTGAGE INSURANCE BALANCE SHEETS(B)
 
                                       March 31,     December 31,    March 31,
                                         2001           2000           2000
                                              (Dollars in thousands,
                                               except per share data)
      Assets
       Cash and investments, at fair
        value                         $1,742,660(H) $1,746,683(H) $1,608,128
      Reinsurance recoverable and
       prepaid premiums                   53,377         51,328         55,507
      Deferred policy acquisition
       costs                              62,575         63,295         65,814
      Other assets                       156,714        147,017         97,654
 
          Total assets                $2,015,326     $2,008,323     $1,827,103
 
      Liabilities
      Reserve for losses and loss
       adjustment expenses              $280,749       $281,704       $275,502
      Unearned premiums                   94,455         96,561         98,861
      Other liabilities                  154,054        135,738        141,452
 
          Total liabilities              529,258        514,003        515,815
 
      Shareholders' equity             1,486,068      1,494,320      1,311,288
 
          Total liabilities and
           shareholders' equity       $2,015,326     $2,008,323     $1,827,103
 
 
                        THE PMI GROUP, INC. AND SUBSIDIARIES
 
                U.S. MORTGAGE INSURANCE OPERATIONS LOSS RESERVES (B)
 
 
                             March 31,      December 31,         March 31,
                                2001            2000               2000
                        Loans     Reserve   Loans  Reserve     Loans  Reserve
                          in        for      in      for        in      for
                       Default    Losses  Default   Losses    Default  Losses
                                       (Dollars in thousands)
 
     Primary
      insurance        18,318   $232,228  18,093   $232,231  15,400  $217,445
     GSE pool
      insurance         4,856     31,947   4,024     31,947   2,472    26,041
     Old pool
      insurance         1,210     16,574   1,169     17,526   1,399    32,016
         Total         24,384   $280,749  23,286   $281,704  19,271  $275,502
 
 
 
                                        March 31,  December 31,   March 31,
                                           2001        2000         2000
                                               (Dollars in thousands)
 
     Reserves for losses and loss adjustment expenses:
       U.S. mortgage insurance
        operations                         $280,749     $281,704    $275,502
       International mortgage
        insurance operations                 5,229        5,384       3,401
       Title insurance                       8,363        8,001       8,170
         Total reserve for losses         $294,341     $295,089    $287,073
 
 
                        Reconciliation of Reserve for Losses
 
                                   March 31,    December 31,       Reserve
                                      2001           2000            Change
                                            (Dollars in thousands)
     Gross reserves:
       Primary                        $232,228        $232,231           $(3)
       GSE pool                         31,947          31,947            --
       Old pool                         16,574          17,526          (952)
       U.S. mortgage operations
        gross reserves                 280,749         281,704          (955)
 
     Ceded Reserves:
       Primary                           5,766           6,075          (309)
       Old pool                          3,038           3,136           (98)
       Total ceded reserves              8,804           9,211          (407)
 
     U.S. mortgage operations
      net reserves                    $271,945        $272,493         $(548)
 
 
                        THE PMI GROUP, INC. AND SUBSIDIARIES
 
              U.S. MORTGAGE INSURANCE OPERATIONS EXPENSE ANALYSIS (B)
 
             Analysis of Deferred Policy Acquisition Costs ("DPAC")
 
                                                  Three Months Ended March 31,
                                                         2001           2000
                                                       (Dollars in thousands)
 
     Beginning DPAC balance                            $63,295         $67,280
 
     DPAC deferral                                      18,710          18,932
 
     DPAC amortization                                 (19,430)        (20,398)
 
     Ending DPAC balance                               $62,575         $65,814
 
 
                           Analysis of Expense Ratios
 
                                              Three Months Ended
                                   March 31,    December 31,     March 31,
                                      2001           2000            2000
                                            (Dollars in thousands)
 
     Net premiums written           $129,791        $129,251      $116,986
 
     Premiums earned                 132,015         130,862       120,536
 
     Gross operating expenses         32,310          31,585 (E)    31,892
 
     Net operating expenses           33,030          29,488 (E)    33,358
 
     Gross expense ratio                24.9%           24.4%(E)      27.3%
 
     Net expense ratio                  25.4%           22.8%(E)      28.5%
 
     Percentage of NIW generated
      through contract underwriting     31.4%           24.8%         21.5%
 
     Persistency                        77.7%           80.3%          75.6%
 
 
                        THE PMI GROUP, INC. AND SUBSIDIARIES
 
           U.S. MORTGAGE INSURANCE OPERATIONS STATISTICAL INFORMATION (B)
 
 
                                                  Three Months Ended March 31,
                                                         2001           2000
 
 
     New primary insurance written "NIW" (in millions) $7,421         $5,925
 
     New primary risk written (in millions)            $1,779         $1,390
 
     New GSE pool risk written (in millions)              $10            $24
 
     Product mix as a % of new insurance written:
 
       95% LTV's                                           35%            31%
       90% LTV's                                           43%            33%
       95% LTV's/30% coverage                              24%            24%
       90% LTV's/25% coverage                              33%            28%
       ARMs                                                 5%            19%
       Monthlies                                           98%            98%
       Refinances                                          35%            10%
 
 
     Net premiums written (in thousands):
 
       Monthlies                                      $127,697       $106,908
       Annuals and singles                              13,084         15,750
       Pools                                             5,234          4,856
       Refunds, assumed & ceded premiums               (16,224)       (10,528)
     Net premiums written                             $129,791       $116,986
 
 
 
     Supplemental Reserve, Claims and Delinquency Data for Primary Mortgage
                                   Insurance
 
     For the Quarter Ended:        Reserve for     Direct Claims  Average
 Claims
                                     Losses            Paid          Size
     (Dollars in thousands)
     Jun-98                          191,142          34,468         24.51
     Sep-98                          198,398          26,639         21.39
     Dec-98                          203,360          24,493         23.32
     Mar-99                          206,280          22,981         22.37
     Jun-99                          205,734          18,668         20.87
     Sep-99                          209,832          20,356         20.40
     Dec-99                          211,793          17,609         20.18
     Mar-00                          217,445          19,229         20.49
     Jun-00                          221,450          15,378         19.45
     Sep-00                          231,348          14,986         19.05
     Dec-00                          232,231          17,156         18.97
     Mar-01                          232,228          18,545         20.63
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
 
         U.S. MORTGAGE INSURANCE OPERATIONS STATISTICAL INFORMATION (B)
 
                                   March 31,       December 31,   March 31,
                                      2001            2000          2000
 
     Direct primary insurance
      in force (in millions)         $97,813         $96,914       $88,885
 
     Direct primary risk
      in force (in millions)         $23,759         $23,559       $21,670
 
     Direct GSE pool risk
      in force (in millions)            $796            $786          $705
 
     Direct old pool risk
      in force (in millions)          $1,383          $1,392        $1,407
 
     Other risk in force
      (in millions)                     $269            $233          $144
 
     Risk-to-capital ratio(F)      13.7 to 1       14.1 to 1     14.6 to 1
 
     Insured primary loans           825,241         820,213       764,578
 
     Persistency                        77.7%           80.3%         75.6%
 
     Primary Loans in default         18,318          18,093        15,400
 
     Default rate                       2.22%           2.21%         2.01%
 
     Direct primary claims paid
      (year-to-date in millions)       $18.5           $66.7         $19.2
 
     Direct primary claims paid
      number (year-to-date)              899           3,518           937
 
     Average primary claim size
      (year-to-date)                 $20,628         $18,973       $20,491
 
 
 
     COMBINED STATISTICAL INFORMATION WITH CMG MORTGAGE INSURANCE COMPANY (G)
 
                                    March 31,      December 31,     March 31,
                                       2001            2000            2000
 
     Direct primary new
      insurance written
      (year-to-date in millions)      $8,026         $29,519        $6,380
 
     Direct primary insurance
      in force (in millions)        $105,144        $103,987       $94,854
 
     Direct primary risk in
      force (in millions)            $25,561         $25,306       $23,141
 
     Insured primary loans           889,024         882,161       817,843
 
     Persistency                        78.0%           80.5%         76.4%
 
     Primary loans in default         18,555          18,303        15,572
 
     Primary default rate               2.09%           2.07%         1.90%
 
     Direct primary claims paid
      (year-to-date in millions)       $18.7           $67.5         $19.4
 
     Direct primary claims
      paid number (year-to-date)         912           3,565           948
 
     Average primary claims size
      (year-to-date)                 $20,504         $18,948       $20,464
 
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
 
                     TITLE INSURANCE RESULTS OF OPERATIONS
 
                                                  Three Months Ended March 31,
                                                        2001           2000
                                                      (Dollars in thousands)
 
 
 
     Net premiums written                             $30,990        $22,590
 
     Revenues
 
     Premiums earned                                  $30,990        $22,590
      Investment income                                   518            457
      Other income                                          6              7
         Total revenues                                31,514         23,054
 
     Losses and expenses
      Losses and loss adjustment expenses                 777            227
      Underwriting and operating expenses              28,452         20,839
         Total losses and expenses                     29,229         21,066
 
     Income before income taxes                         2,285          1,988
 
     Income tax expense                                   785            598
 
     Net income                                        $1,500         $1,390
 
     Ratios
     Expense ratio                                       91.8%          92.3%
     Loss ratio                                           2.5%           1.0%
     Combined ratio                                      94.3%          93.3%
 
 
 
                         TITLE INSURANCE BALANCE SHEETS
 
                                    March 31,      December 31,     March 31,
                                       2001            2000           2000
                                              (Dollars in thousands)
 
     Assets
     Cash and investments,
      at fair value                  $39,442         $38,952       $34,956
     Other assets                     13,973          14,323        12,829
 
         Total assets                $53,415         $53,275       $47,785
 
     Liabilities
     Reserve for losses and
      loss adjustment expenses        $8,363          $8,001        $8,170
     Other liabilities                 8,671          10,459         6,470
 
         Total liabilities            17,034          18,460        14,640
 
     Shareholders' equity             36,381          34,815        33,145
 
         Total liabilities and
          shareholders' equity       $53,415         $53,275       $47,785
 
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
 
          INTERNATIONAL MORTGAGE INSURANCE RESULTS OF OPERATIONS (C,D)
 
                                                  Three Months Ended March 31,
                                                        2001            2000
                                                     (US dollars in thousands)
 
     Net premiums written                             $10,417         $6,034
 
     Revenues
      Premiums earned                                  $7,127         $5,590
      Investment income                                 2,612          2,484
      Net realized investment gains (losses)             (558)           844
 
         Total revenues                                 9,181          8,918
 
     Losses and expenses
      Losses and loss adjustment expenses               1,016            409
      Amortization of policy acquisition costs            953            311
      Other operating expenses                          1,287          1,671
 
         Total losses and expenses                      3,256          2,391
 
     Income before income taxes                         5,925          6,527
 
     Income tax expense                                 1,435          2,114
 
     Net income                                        $4,490         $4,413
 
     Ratios
      Expense ratio                                      15.0%          32.9%
      Loss ratio                                         14.3%           7.3%
      Combined ratio                                     29.3%          40.2%
 
              INTERNATIONAL MORTGAGE INSURANCE BALANCE SHEET (C,D)
 
                                    March 31,      December 31,    March 31,
                                       2001            2000          2000
                                             (US dollars in thousands)
 
     Assets
 
     Cash and investments,
      at fair value                 $250,095        $164,766      $170,587
     Deferred policy
      acquisition costs                4,695           3,714         3,013
     Other assets                      6,677           5,526         4,199
 
         Total assets               $261,467        $174,006      $177,799
 
     Liabilities
 
     Reserve for losses and loss
      adjustment expenses             $5,229          $5,384        $3,401
     Unearned premiums                77,296          74,305        76,088
     Long-term debt                   37,104          37,210        43,710
     Other liabilities                11,851           8,884        16,973
 
         Total liabilities           131,480         125,783       140,172
 
     Shareholder's equity            129,987          48,223        37,627
 
     Total liabilities and
      shareholder's equity          $261,467        $174,006       $177,799
 
 

SOURCE PMI Group, Inc.
    SAN FRANCISCO, April 18 /PRNewswire/ -- The PMI Group, Inc. (NYSE:   PMI)
 today announced operating earnings per share (excluding capital losses) of
 $1.60, an increase in per share earnings of 20 percent over the comparable
 period in 2000.  Net income grew to $71.5 million for the quarter, from
 $60.0 million for first quarter 2000.
     "We are excited with our strong start in 2001," said W. Roger Haughton,
 Chairman and CEO of PMI.  "Very good earnings per share growth, a record first
 quarter volume of new insurance written and credit quality were key components
 of our excellent first quarter results.  We are pleased with the strength of
 the purchase mortgage market in the U.S. and our results reflect that market
 strength."
     Combined(A) new primary mortgage insurance written in first quarter 2001
 was $9.3 billion, compared to $7.3 billion in first quarter 2000.  Secondary
 market transactions accounted for $0.1 billion in first quarter 2001 as
 compared to $1 billion in first quarter 2000.
     Domestic(B) new primary mortgage insurance written was $8.0 billion
 (including $0.1 billion in secondary market transactions) for first quarter
 2001 as opposed to $6.4 billion (including $1 billion in secondary market
 transactions) for the same period in 2000.
     Combined primary mortgage insurance in force grew to $125.2 billion at
 March 31, 2001, a 10.6 percent increase from the $113.9 billion at
 March 31, 2000.  Domestic primary mortgage insurance in force and mortgage
 risk in force grew to $105.1 billion and $25.6 billion respectively at
 March 31, 2001, compared to $94.9 billion and $23.1 billion respectively at
 March 31, 2000.  GSE pool risk grew from $0.7 billion to $0.8 billion, while
 other risk in force grew from $0.1 billion to $0.3 billion between first
 quarter 2000 and first quarter 2001.  The domestic primary mortgage insurance
 persistency rate, or the percentage of primary mortgage insurance remaining in
 force compared to one year ago, was 78.0 percent at March 31, 2001, compared
 to 80.5 percent at December 31, 2000 and 76.4 percent at March 31, 2000.
     Consolidated revenues for the Company in the quarter were
 $204.6 million compared to $179.4 million for the same period a year ago.
 The growth in revenues for the quarter was led by consolidated net premiums
 earned of $170.1 million, which increased 14.4 percent, and investment income
 of $31.2 million, which increased 15.3 percent over first quarter 2000.
     Consolidated losses and loss adjustment expenses totaled $23.0 million for
 the quarter, compared to $28.2 million for the comparable period in 2000.
 Consolidated amortization of policy acquisition costs and other operating
 expenses for first quarter 2001 were $74.9 million compared to
 $59.6 million in first quarter 2000.
     The percentage of the Company's domestic primary mortgage insurance loans
 in default as of March 31, 2001 was 2.09 percent compared to 2.07 percent at
 December 31, 2000 and 1.90 percent at March 31, 2000.  Excluding CMG, the
 percentage of primary mortgage insurance loans in default in PMI's U.S.
 mortgage insurance operations was 2.22 percent at March 31, 2001, compared to
 2.21 percent at December 31, 2000 and 2.01 percent at March 31, 2000.
     PMI's U.S. mortgage insurance operations(C) reported net income of
 $71.1 million and net premiums earned of $132.0 million for the quarter
 compared to $57.5 million and $120.5 million respectively in the comparable
 period in 2000.
     Primary direct claims paid by U.S. mortgage insurance operations
 (excluding CMG) totaled $18.5 million for first quarter 2001, compared to
 $19.2 million for first quarter 2001, a decrease of 3.6 percent.  Average
 primary claim size was $20,628, compared to $20,491 for the prior year period.
     PMI Australia, an indirect wholly owned subsidiary, reported total revenue
 of $8.9 million and net income of $4.3 million for the quarter, with net
 premiums earned of $7.1 million.  The comparable figures for first quarter
 2000 (which only reflect two months of results due to a change in accounting
 period for foreign operations that took place in first quarter 2000) were
 $8.9 million in revenue, $4.4 in net income and $5.6 million in premiums
 earned.  Losses and loss adjustment expenses for PMI Australia were
 $1.0 million for the quarter, while underwriting and other expenses were
 $1.6 million as compared to $0.4 million and $1.5 million respectively for
 first quarter 2000.  (Consolidated results for PMI Australia were impacted by
 a decline in the exchange rate between the U.S. and Australian currencies.
 Between first quarter 2000 and first quarter 2001, the Australian dollar
 declined from an average of $0.64 U.S. dollar to $0.55 U.S. dollar.)
     American Pioneer Title Insurance Company (APTIC), the Company's wholly
 owned title insurance subsidiary, reported total revenue of $31.5 million and
 net income for first quarter 2001 of $1.5 million, compared to
 $23.1 million and $1.4 million respectively in the same period a year ago.
 APTIC's premiums earned for the quarter totaled $31 million, compared to
 $22.6 million for first quarter 2000.  APTIC reported losses and loss
 adjustment expenses of $0.8 million for the quarter and underwriting and other
 expenses of $28.5 million compared to $0.2 million and $20.8 million
 respectively in the prior year period.
     CMG, PMI's joint venture with CUNA Mutual, earned $4.4 million in the
 quarter, compared to $3.6 million in the comparable period in 2000.
     The PMI Group, Inc. is headquartered in San Francisco, California and,
 through its subsidiary, PMI Mortgage Insurance Co., is one of the largest
 private mortgage insurers in the United States.  Private mortgage insurance
 protects mortgage lenders against potential losses in the event of borrower
 default.  By covering default risk on residential first mortgage loans,
 mortgage insurance facilitates the sale of mortgages in the secondary mortgage
 market.  In addition, private mortgage insurance expands homeownership
 opportunities by enabling borrowers to purchase homes with down payments of
 less than 20 percent.  The PMI Group, Inc., through its subsidiaries, also
 provides private mortgage insurance in Australia, New Zealand and the European
 Union as well as mortgage guaranty reinsurance in Hong Kong.  The PMI Group,
 Inc. is a leader in mortgage risk management technology, providing various
 products and services to the home mortgage finance industry as well as title
 insurance.
     The PMI Group, Inc. is an advocate of affordable housing and supports a
 number of initiatives and organizations that foster greater access to
 affordable housing in the United States, including Habitat for Humanity,
 Neighborhood Housing Services of America, Native American Indian Housing
 Council and the Unity Council.
     This release can be accessed through the World Wide Web at
 www.pmigroup.com or a fax copy of this release can be obtained by dialing
 800-758-5804, entering The PMI Group, Inc. company code no. 706963 when
 prompted, and following the automated prompts.
     You may listen to PMI's conference call to discuss the first quarter
 earnings results at 12:00 noon Eastern, 9:00 a.m. Pacific time on
 April 18, 2001 by going to www.pmigroup.com/investor relations.  A replay of
 PMI's call can be heard and seen, beginning approximately two hours after the
 call, by accessing PMI's website (as indicated above).  In addition, a
 transcript will be posted approximately 72 hours after the call.  This will be
 accessible for two weeks following the call.
 
     Cautionary Statement:  Any of Company's statements in this press release
 and accompanying materials 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
 including, but not limited to, the following factors that could cause the
 Company's actual results to differ materially from those expressed herein:
     Changes in economic conditions, including economic recessions or
 slowdowns, declining housing values, higher unemployment rates, deteriorating
 borrower credit, changes in interest rates, increases in refinancing activity
 caused by declining interest rates, or combinations of these factors, could
 negatively affect the purchase mortgage market and/or reduce the demand for
 mortgage insurance. A decrease in persistency, resulting from policy
 cancellations of older books of business, could materially impact the
 Company's financial results of operations.  While stable or rising interest
 rates may positively contribute to the persistency rate, declining interest
 rates could adversely affect the Company's persistency rate, its premium yield
 and its financial condition and results of operations.  Changes in economic
 conditions also could cause the number and severity of claims on policies
 issued by PMI to increase and this could materially adversely affect the
 Company's financial condition and results of operations.
     The performance of the Company's strategic investments could materially
 and adversely be affected by changes in the real estate, mortgage lending,
 mortgage servicing and financial guaranty markets; future movements in
 interest rates; the ability of those entities to execute future business
 plans; and PMI's dependence upon management to operate those companies in
 which PMI does not own a controlling share.
     Any or all of these factors could affect the Company and cause its
 performance to differ materially from a forward-looking statement.  Other
 risks and uncertainties that could affect the Company are discussed in PMI's
 various Securities and Exchange Commission filings.
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
 
        FINANCIAL AND OPERATING RESULTS FOR PERIOD ENDING MARCH 31, 2001
 
                                    Contents
 
      Consolidated Statements of Operations
      Consolidated Balance Sheet
      Business Segments
      U.S. Mortgage Insurance Results of Operations
      U.S. Mortgage Insurance Balance Sheet
      U.S. Mortgage Insurance Operations Loss Reserves
      U.S. Mortgage Insurance Operations Expense Analysis
      U.S. Mortgage Insurance Operations Statistical Information
      U.S. Mortgage Insurance Operations and CMG Combined Statistical
       Information
      Title Insurance Results of Operations and Balance Sheet
      International Mortgage Insurance Results of Operations and Balance Sheet
 
     Please refer to the following when noted:
     (A) Company obligated mandatory redeemable preferred capital securities of
         subsidiary trust holding solely junior subordinated deferrable
         interest debentures of the Company.
     (B) The U.S. Mortgage Insurance operations include the operating results
         of PMI Mortgage Insurance Co. ("PMI"), Residential Guaranty Co.
         ("RGC"), PMI Mortgage Guaranty Co. ("PMG"), Residential Insurance Co.
         ("RIC"), TPG Insurance Co. ("TIC"), TPG Segregated Portfolio Co.
         ("TSP") and Pinebrook.  In addition, CMG is included under the equity
         earnings method of accounting.  CMG includes CMG Mortgage Insurance
         Company, CMG Mortgage Reinsurance Company and CMG Mortgage Assurance
         Company.
     (C) Effective January 1, 2000, the Company changed its accounting policy
         for foreign operations to report results from foreign subsidiaries and
         affiliates on a one month lag from domestic operations.
     (D) International Mortgage Insurance operations includes PMI Mortgage
         Insurance Ltd ("PMI Ltd"), which was acquired by PMI on August 6, 1999
         and operates in Australia and New Zealand.  Also includes PMI Mortgage
         Insurance Company Limited ("PMI Europe"), which was formed in
         February 2001 and located in Dublin, Ireland.  Financial results of
         International operations are subject to currency rate risk.
     (E) Excludes litigation settlement charges of $0.08 per share after tax.
     (F) Represents statutory risk to capital ratio for PMI Mortgage Insurance
         Co.
     (G) CMG operating statistical amounts are included at 100%
     (H) Includes $10.0 million of commercial paper issued by PG&E, which filed
         for bankruptcy protection on April 6, 2001.
         The obligation is currently in default, however, interest payments are
         current through March 31, 2001.
 
     Certain prior year amounts have been reclassified to conform to current
 year presentation.
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                                  Three Months Ended March 31,
                                                     2001              2000
                                                     (Dollars in thousands,
                                                      except per share data)
 
     Net premiums written                          $171,199          $145,610
 
     Revenues
        Premiums earned                            $170,132          $148,716
        Investment income                            31,232            27,083
        Net realized investment gains
         (losses)                                      (991)              768
        Other income                                  4,200             2,851
 
          Total revenues                            204,573           179,418
 
     Losses and expenses
        Losses and loss adjustment
         expenses                                    23,008            28,223
        Amortization of policy acquisition
         costs                                       20,383            20,709
        Other underwriting and operating
         expenses                                    54,480            38,893
        Interest expense                              2,700             2,370
        Distributions on preferred capital
         securities(A)                                2,077             2,077
 
          Total losses and expenses                 102,648            92,272
 
     Income before income taxes                     101,925            87,146
 
     Income tax expense                              30,394            27,156
 
     Net income                                     $71,531           $59,990
 
     Diluted weighted average common
      shares outstanding (shares in thousands)       45,102            44,767
 
     Diluted net income per share                     $1.59             $1.34
 
     Diluted operating income per share               $1.60             $1.33
 
 
 
                          CONSOLIDATED BALANCE SHEETS
 
                                      March 31,     December 31,    March 31,
                                        2001           2000           2000
                                               (Dollars in thousands,
                                               except per share data)
      Assets
         Cash and investments, at
          fair value                  $2,182,640(H)  $2,100,193(H)  $1,915,194
         Reinsurance recoverable and
          prepaid premiums                53,377         51,328         55,507
         Deferred policy acquisition
          costs                           67,270         67,009         68,827
         Other assets                    184,972        174,127        133,606
 
          Total assets                $2,488,259     $2,392,657     $2,173,134
 
      Liabilities
         Reserve for losses and loss
          adjustment expenses           $294,341       $295,089       $287,073
         Unearned premiums               171,751        170,866        174,949
         Long-term debt                  136,730        136,819        143,269
         Other liabilities               216,602        191,563        199,517
 
          Total liabilities              819,424        794,337        804,808
 
       Redeemable preferred capital
        securities (A)                    99,117         99,109         99,083
 
      Shareholders' equity             1,569,718      1,499,211      1,269,243
 
          Total liabilities and
           shareholders' equity       $2,488,259     $2,392,657     $2,173,134
 
      Book value per share                $35.40         $33.83         $28.50
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
                               BUSINESS SEGMENTS
 
                                    Three Months Ended March 31, 2001
                                         (Dollars in thousands)
 
                                       Inter-
                            U.S.      national
                          Mortgage    Mortgage                          Consol-
                         Insurance    Insurance     Title               idated
                         Operations   Operations  Insurance   Other     Total
                             (B)        (C,D)
 
     Premiums earned      $132,015      $7,127    $30,990       $--    $170,132
 
     Net underwriting
      income (expense)     $77,965      $4,547     $1,768   $(7,817)    $76,463
 
     Net income (loss)     $71,127      $4,490     $1,500   $(5,586)    $71,531
 
     Total assets       $2,015,326    $261,467    $53,415  $158,051  $2,488,259
 
                                   Three Months Ended March 31, 2000
                                         (Dollars in thousands)
 
                                       Inter-
                            U.S.      national
                          Mortgage    Mortgage
                          Insurance  Insurance     Title           Consolidated
                         Operations  Operations  Insurance   Other     Total
                              (B)       (C,D)
 
     Premiums earned       $120,536    $5,590    $22,590        $--    $148,716
 
     Net underwriting
      income (expense)      $59,530    $3,719     $1,531    $(1,037)    $63,743
 
     Net income (loss)      $57,480    $4,413     $1,390    $(3,293)    $59,990
 
     Total assets        $1,827,103  $177,799    $47,785   $120,447  $2,173,134
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
                U.S. MORTGAGE INSURANCE RESULTS OF OPERATIONS(B)
 
                                                 Three Months Ended March 31,
                                                    2001              2000
                                                    (Dollars in thousands)
 
     Net premiums written                          $129,791          $116,986
 
     Revenues
        Premiums earned                            $132,015          $120,536
        Investment income                            22,521            21,165
        Net realized investment losses                 (204)              (76)
        Equity earnings - CMG                         2,278             1,775
        Other income                                    195                --
 
         Total revenues                             156,805           143,400
 
     Losses and expenses
        Losses and loss adjustment
         expenses                                    21,215            27,588
        Amortization of policy acquisition
         costs                                       19,430            20,398
        Other operating expenses                     13,600            13,033
 
         Total losses and expenses                   54,245            61,019
 
     Income before income taxes                     102,560            82,381
 
     Income tax expense                              31,433            24,901
 
     Net income                                     $71,127           $57,480
 
     Ratios
     Gross expense ratio                              24.9%             27.3%
     Net expense ratio                                25.4%             28.5%
     Loss ratio                                       16.1%             22.9%
     Combined ratio                                   41.5%             51.4%
 
                   U.S. MORTGAGE INSURANCE BALANCE SHEETS(B)
 
                                       March 31,     December 31,    March 31,
                                         2001           2000           2000
                                              (Dollars in thousands,
                                               except per share data)
      Assets
       Cash and investments, at fair
        value                         $1,742,660(H) $1,746,683(H) $1,608,128
      Reinsurance recoverable and
       prepaid premiums                   53,377         51,328         55,507
      Deferred policy acquisition
       costs                              62,575         63,295         65,814
      Other assets                       156,714        147,017         97,654
 
          Total assets                $2,015,326     $2,008,323     $1,827,103
 
      Liabilities
      Reserve for losses and loss
       adjustment expenses              $280,749       $281,704       $275,502
      Unearned premiums                   94,455         96,561         98,861
      Other liabilities                  154,054        135,738        141,452
 
          Total liabilities              529,258        514,003        515,815
 
      Shareholders' equity             1,486,068      1,494,320      1,311,288
 
          Total liabilities and
           shareholders' equity       $2,015,326     $2,008,323     $1,827,103
 
 
                        THE PMI GROUP, INC. AND SUBSIDIARIES
 
                U.S. MORTGAGE INSURANCE OPERATIONS LOSS RESERVES (B)
 
 
                             March 31,      December 31,         March 31,
                                2001            2000               2000
                        Loans     Reserve   Loans  Reserve     Loans  Reserve
                          in        for      in      for        in      for
                       Default    Losses  Default   Losses    Default  Losses
                                       (Dollars in thousands)
 
     Primary
      insurance        18,318   $232,228  18,093   $232,231  15,400  $217,445
     GSE pool
      insurance         4,856     31,947   4,024     31,947   2,472    26,041
     Old pool
      insurance         1,210     16,574   1,169     17,526   1,399    32,016
         Total         24,384   $280,749  23,286   $281,704  19,271  $275,502
 
 
 
                                        March 31,  December 31,   March 31,
                                           2001        2000         2000
                                               (Dollars in thousands)
 
     Reserves for losses and loss adjustment expenses:
       U.S. mortgage insurance
        operations                         $280,749     $281,704    $275,502
       International mortgage
        insurance operations                 5,229        5,384       3,401
       Title insurance                       8,363        8,001       8,170
         Total reserve for losses         $294,341     $295,089    $287,073
 
 
                        Reconciliation of Reserve for Losses
 
                                   March 31,    December 31,       Reserve
                                      2001           2000            Change
                                            (Dollars in thousands)
     Gross reserves:
       Primary                        $232,228        $232,231           $(3)
       GSE pool                         31,947          31,947            --
       Old pool                         16,574          17,526          (952)
       U.S. mortgage operations
        gross reserves                 280,749         281,704          (955)
 
     Ceded Reserves:
       Primary                           5,766           6,075          (309)
       Old pool                          3,038           3,136           (98)
       Total ceded reserves              8,804           9,211          (407)
 
     U.S. mortgage operations
      net reserves                    $271,945        $272,493         $(548)
 
 
                        THE PMI GROUP, INC. AND SUBSIDIARIES
 
              U.S. MORTGAGE INSURANCE OPERATIONS EXPENSE ANALYSIS (B)
 
             Analysis of Deferred Policy Acquisition Costs ("DPAC")
 
                                                  Three Months Ended March 31,
                                                         2001           2000
                                                       (Dollars in thousands)
 
     Beginning DPAC balance                            $63,295         $67,280
 
     DPAC deferral                                      18,710          18,932
 
     DPAC amortization                                 (19,430)        (20,398)
 
     Ending DPAC balance                               $62,575         $65,814
 
 
                           Analysis of Expense Ratios
 
                                              Three Months Ended
                                   March 31,    December 31,     March 31,
                                      2001           2000            2000
                                            (Dollars in thousands)
 
     Net premiums written           $129,791        $129,251      $116,986
 
     Premiums earned                 132,015         130,862       120,536
 
     Gross operating expenses         32,310          31,585 (E)    31,892
 
     Net operating expenses           33,030          29,488 (E)    33,358
 
     Gross expense ratio                24.9%           24.4%(E)      27.3%
 
     Net expense ratio                  25.4%           22.8%(E)      28.5%
 
     Percentage of NIW generated
      through contract underwriting     31.4%           24.8%         21.5%
 
     Persistency                        77.7%           80.3%          75.6%
 
 
                        THE PMI GROUP, INC. AND SUBSIDIARIES
 
           U.S. MORTGAGE INSURANCE OPERATIONS STATISTICAL INFORMATION (B)
 
 
                                                  Three Months Ended March 31,
                                                         2001           2000
 
 
     New primary insurance written "NIW" (in millions) $7,421         $5,925
 
     New primary risk written (in millions)            $1,779         $1,390
 
     New GSE pool risk written (in millions)              $10            $24
 
     Product mix as a % of new insurance written:
 
       95% LTV's                                           35%            31%
       90% LTV's                                           43%            33%
       95% LTV's/30% coverage                              24%            24%
       90% LTV's/25% coverage                              33%            28%
       ARMs                                                 5%            19%
       Monthlies                                           98%            98%
       Refinances                                          35%            10%
 
 
     Net premiums written (in thousands):
 
       Monthlies                                      $127,697       $106,908
       Annuals and singles                              13,084         15,750
       Pools                                             5,234          4,856
       Refunds, assumed & ceded premiums               (16,224)       (10,528)
     Net premiums written                             $129,791       $116,986
 
 
 
     Supplemental Reserve, Claims and Delinquency Data for Primary Mortgage
                                   Insurance
 
     For the Quarter Ended:        Reserve for     Direct Claims  Average
 Claims
                                     Losses            Paid          Size
     (Dollars in thousands)
     Jun-98                          191,142          34,468         24.51
     Sep-98                          198,398          26,639         21.39
     Dec-98                          203,360          24,493         23.32
     Mar-99                          206,280          22,981         22.37
     Jun-99                          205,734          18,668         20.87
     Sep-99                          209,832          20,356         20.40
     Dec-99                          211,793          17,609         20.18
     Mar-00                          217,445          19,229         20.49
     Jun-00                          221,450          15,378         19.45
     Sep-00                          231,348          14,986         19.05
     Dec-00                          232,231          17,156         18.97
     Mar-01                          232,228          18,545         20.63
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
 
         U.S. MORTGAGE INSURANCE OPERATIONS STATISTICAL INFORMATION (B)
 
                                   March 31,       December 31,   March 31,
                                      2001            2000          2000
 
     Direct primary insurance
      in force (in millions)         $97,813         $96,914       $88,885
 
     Direct primary risk
      in force (in millions)         $23,759         $23,559       $21,670
 
     Direct GSE pool risk
      in force (in millions)            $796            $786          $705
 
     Direct old pool risk
      in force (in millions)          $1,383          $1,392        $1,407
 
     Other risk in force
      (in millions)                     $269            $233          $144
 
     Risk-to-capital ratio(F)      13.7 to 1       14.1 to 1     14.6 to 1
 
     Insured primary loans           825,241         820,213       764,578
 
     Persistency                        77.7%           80.3%         75.6%
 
     Primary Loans in default         18,318          18,093        15,400
 
     Default rate                       2.22%           2.21%         2.01%
 
     Direct primary claims paid
      (year-to-date in millions)       $18.5           $66.7         $19.2
 
     Direct primary claims paid
      number (year-to-date)              899           3,518           937
 
     Average primary claim size
      (year-to-date)                 $20,628         $18,973       $20,491
 
 
 
     COMBINED STATISTICAL INFORMATION WITH CMG MORTGAGE INSURANCE COMPANY (G)
 
                                    March 31,      December 31,     March 31,
                                       2001            2000            2000
 
     Direct primary new
      insurance written
      (year-to-date in millions)      $8,026         $29,519        $6,380
 
     Direct primary insurance
      in force (in millions)        $105,144        $103,987       $94,854
 
     Direct primary risk in
      force (in millions)            $25,561         $25,306       $23,141
 
     Insured primary loans           889,024         882,161       817,843
 
     Persistency                        78.0%           80.5%         76.4%
 
     Primary loans in default         18,555          18,303        15,572
 
     Primary default rate               2.09%           2.07%         1.90%
 
     Direct primary claims paid
      (year-to-date in millions)       $18.7           $67.5         $19.4
 
     Direct primary claims
      paid number (year-to-date)         912           3,565           948
 
     Average primary claims size
      (year-to-date)                 $20,504         $18,948       $20,464
 
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
 
                     TITLE INSURANCE RESULTS OF OPERATIONS
 
                                                  Three Months Ended March 31,
                                                        2001           2000
                                                      (Dollars in thousands)
 
 
 
     Net premiums written                             $30,990        $22,590
 
     Revenues
 
     Premiums earned                                  $30,990        $22,590
      Investment income                                   518            457
      Other income                                          6              7
         Total revenues                                31,514         23,054
 
     Losses and expenses
      Losses and loss adjustment expenses                 777            227
      Underwriting and operating expenses              28,452         20,839
         Total losses and expenses                     29,229         21,066
 
     Income before income taxes                         2,285          1,988
 
     Income tax expense                                   785            598
 
     Net income                                        $1,500         $1,390
 
     Ratios
     Expense ratio                                       91.8%          92.3%
     Loss ratio                                           2.5%           1.0%
     Combined ratio                                      94.3%          93.3%
 
 
 
                         TITLE INSURANCE BALANCE SHEETS
 
                                    March 31,      December 31,     March 31,
                                       2001            2000           2000
                                              (Dollars in thousands)
 
     Assets
     Cash and investments,
      at fair value                  $39,442         $38,952       $34,956
     Other assets                     13,973          14,323        12,829
 
         Total assets                $53,415         $53,275       $47,785
 
     Liabilities
     Reserve for losses and
      loss adjustment expenses        $8,363          $8,001        $8,170
     Other liabilities                 8,671          10,459         6,470
 
         Total liabilities            17,034          18,460        14,640
 
     Shareholders' equity             36,381          34,815        33,145
 
         Total liabilities and
          shareholders' equity       $53,415         $53,275       $47,785
 
 
 
                      THE PMI GROUP, INC. AND SUBSIDIARIES
 
          INTERNATIONAL MORTGAGE INSURANCE RESULTS OF OPERATIONS (C,D)
 
                                                  Three Months Ended March 31,
                                                        2001            2000
                                                     (US dollars in thousands)
 
     Net premiums written                             $10,417         $6,034
 
     Revenues
      Premiums earned                                  $7,127         $5,590
      Investment income                                 2,612          2,484
      Net realized investment gains (losses)             (558)           844
 
         Total revenues                                 9,181          8,918
 
     Losses and expenses
      Losses and loss adjustment expenses               1,016            409
      Amortization of policy acquisition costs            953            311
      Other operating expenses                          1,287          1,671
 
         Total losses and expenses                      3,256          2,391
 
     Income before income taxes                         5,925          6,527
 
     Income tax expense                                 1,435          2,114
 
     Net income                                        $4,490         $4,413
 
     Ratios
      Expense ratio                                      15.0%          32.9%
      Loss ratio                                         14.3%           7.3%
      Combined ratio                                     29.3%          40.2%
 
              INTERNATIONAL MORTGAGE INSURANCE BALANCE SHEET (C,D)
 
                                    March 31,      December 31,    March 31,
                                       2001            2000          2000
                                             (US dollars in thousands)
 
     Assets
 
     Cash and investments,
      at fair value                 $250,095        $164,766      $170,587
     Deferred policy
      acquisition costs                4,695           3,714         3,013
     Other assets                      6,677           5,526         4,199
 
         Total assets               $261,467        $174,006      $177,799
 
     Liabilities
 
     Reserve for losses and loss
      adjustment expenses             $5,229          $5,384        $3,401
     Unearned premiums                77,296          74,305        76,088
     Long-term debt                   37,104          37,210        43,710
     Other liabilities                11,851           8,884        16,973
 
         Total liabilities           131,480         125,783       140,172
 
     Shareholder's equity            129,987          48,223        37,627
 
     Total liabilities and
      shareholder's equity          $261,467        $174,006       $177,799
 
 SOURCE  PMI Group, Inc.

RELATED LINKS

http://www.pmigroup.com/investor/index.html