The PMI Group, Inc. Announces Closing of Common Stock and Convertible Senior Note Offerings and Compliance With Capital Adequacy Requirements for PMI Mortgage Insurance Co.

WALNUT CREEK, Calif., April 30 /PRNewswire-FirstCall/ -- The PMI Group, Inc. (NYSE: PMI) (the "Company') today announced that on April 30, 2010 it completed the sale of common stock and convertible senior notes for aggregate net proceeds of approximately $706 million.  Upon completion, the Company contributed approximately $586 million of the proceeds to PMI Mortgage Insurance Co. ("MIC") in the form of capital and a surplus note.  With this capital contribution, MIC is in compliance with minimum policyholders' position and risk-to-capital regulatory capital requirements applicable to mortgage insurers.

MIC is currently finalizing its statutory financial statements for the quarter ended March 31, 2010, which are due to be filed by May 15, 2010.  On a pro forma basis (including the aforementioned capital contribution), preliminarily at March 31, 2010, MIC's policyholders' position would exceed the minimum policyholders' position required by approximately $529 million, and MIC's risk-to-capital ratio would be approximately 13.4 to 1.  As the capital raise occurred subsequent to the March 31st balance sheet date, the contributed capital will not be reflected in MIC's balance sheet, policyholders' position or risk-to-capital as of the first quarter statutory filing.

"The successful completion of these securities offerings is good news for our shareholders, policyholders, customers, home buyers and our employees," said Steve Smith, Chairman and Chief Executive Officer of PMI. "With the capital contribution to PMI Mortgage Insurance Co., we bring MIC's risk to capital and the minimum policyholders' position substantially within required levels, enabling it to continue writing insurance in all 50 states."    

About The PMI Group, Inc.

The PMI Group, Inc. (NYSE: PMI), headquartered in Walnut Creek, CA, provides credit enhancement solutions that expand homeownership while supporting our customers and the communities they serve. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products.

Cautionary Statement: Statements in this press release that are not historical facts, or that relate to future plans, events or performance are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including those related to MIC's future risk to capital ratio and minimum policyholders' position.  Risks and uncertainties related to PMI and its business are discussed in our SEC filings, including in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2009, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. We undertake no obligation to update forward-looking statements.

SOURCE The PMI Group, Inc.