The PMI Group, a provider of financial products, has reported a net loss of $274 million for the first quarter of 2008, compared to a net income of $102 million for the same quarter of 2007.
The net loss was primarily due to a net loss of $172.5 million in the US mortgage insurance operations due to increases in paid claims, loss adjustment expenses and additions to the reserve for losses and an other-than-temporary impairment of the company’s investment in FGIC.
The company said that these losses were partially offset by higher net income from international operations.
Consolidated net premiums written for the quarter totaled $255.3 million, an increase from $244.1 million for the comparable period in 2007. Consolidated premiums earned for the period improved to $262 million, when compared with $236.4 million for the corresponding quarter in 2007.
For the quarter, consolidated other underwriting and operating expenses were $58.9 million compared to $62.7 million for the same period in 2007. The decrease was primarily a result of lower employee compensation expenses.