Private mortgage insurer PMI Group Inc. acknowledged it will need to raise "significant additional capital" in order to continue writing new business after posting a $1 billion net loss in the fourth quarter -- much of it through its ownership stake in troubled bond insurer FGIC Corp. Although PMIs own mortgage insurance operations generated a $236 million net loss in the final quarter of 2007, it was the company's 42 percent stake in FGIC that put the biggest dent in the company's bottom line, accounting for $776.1 million of the net loss for the quarter. PMI's net loss for the full year was $915.3 million. FGIC, meanwhile, saw shareholder equity plunge from $2.4 billion at the end of 2006 to $584.4 million as of Dec. 31, as the company recognized $1.9 billion in potential losses in 2007 related to derivative contracts issued on mortgage-related collateralized debt obligations (CDOs). FGIC, which insurers bonds and structured debt issued by governments and cor...
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