Industry News

PMI waiting on FGIC to release Q4 results

Insurer discontinuing coverage of 'above 97' loans

Private mortgage insurer PMI Group Inc. said it will postpone releasing of fourth-quarter and year-end financial results because of delays in financial reporting at another company it owns a large stake in -- troubled bond insurer FGIC Corp. PMI Group, which reported an $86.8 million third-quarter loss in October on increased claims and loss reserves, said it has compiled fourth-quarter results for its own U.S. mortgage insurance and international operations but is waiting on fourth-quarter results from FGIC that will affect the company's bottom line. According to its last quarterly report, PMI Group owns a 42 percent stake in FGIC Corp., the holding company of Financial Guaranty Insurance Co. FGIC has applied to New York regulators to spin off its municipal bond business into a separate company to insulate it from losses on riskier guarantees of securities with exposure to losses in mortgage lending. FGIC is one of several "monoline" bond insurers contemplating reorganiza...