WALNUT CREEK, Calif.,
July 5, 2011 /PRNewswire/ -- The PMI
Group, Inc. (NYSE: PMI) (the "Company" or "PMI") announced today
that QBE Insurance Group Limited ("QBE") has waived the right to
make deductions to the value of the contingent promissory note (the
"QBE Note") received from QBE in connection with the 2008 sale of
PMI Australia to QBE. As a result of the termination of these
contingencies, PMI will be able to recognize the value of the QBE
Note in its consolidated GAAP and statutory financial statements
for the quarter ended June 30, 2011.
The payment due date of the QBE Note remains September 30, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20061023/SFM058LOGO)
As the Company has previously reported, the Company is required,
upon receipt of payment of the QBE Note, to make a $25 million payment to PMI Mortgage Insurance Co.
("MIC") under the terms of the agreement pursuant to which MIC
assigned and transferred the QBE Note to PMI (MIC's holding
company).
In addition, as previously reported, upon payment of the QBE
Note, PMI will be required to repay the approximately $50 million outstanding under PMI's credit
facility. Following repayment of the credit facility, the
Company's next debt principal maturity is scheduled to occur in
September 2016.
The QBE Note is valued at approximately $208 million (pre-tax) at maturity.
In a separate transaction, on June 30,
2011, MIC received a $25
million profit commission from QBE relating to a reinsurance
transaction between the parties. This profit commission will
be reflected in MIC's second quarter statutory financial
statements.
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. For more
information: www.pmi-us.com.
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. Readers
are cautioned that forward-looking statements by their very nature
involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. Many factors
could cause actual results and developments to differ materially
from those expressed or implied by forward-looking statements.
Such factors include, among others, the risk that payment of
the QBE Note is not made when and as contractually required.
In addition, statements in this press release are solely
intended, and are strictly limited, to describing the transactions
and occurrences described herein and are not to be construed as
being indicative of the Company's overall results for the quarter
ended June 30, 2011 or for any other
period. The Company's results for the quarter ended
June 30, 2011 will be reported at a
later date.
Other risks and uncertainties are discussed in our SEC filings,
including in Item 1A of our Quarterly Report on Form 10-Q for the
quarter ended March 31, 2010 and our
Annual Report on Form 10-K for the year ended December 31, 2010. We undertake no
obligation to update forward-looking statements.
SOURCE The PMI Group, Inc.