Adverse U.S. market conditions drove decision
TORONTO, Aug. 7 /CNW/ - PMI Mortgage Insurance Company Canada (PMI
Canada), a subsidiary of PMI Mortgage Insurance Co., today announced its
withdrawal from Canada and the closure of its Canadian office. PMI Mortgage
Insurance Co. is the principal U.S. operating subsidiary of The PMI Group,
Inc. (NYSE: PMI).
"PMI has conducted a strategic review of its overall organization and has
determined that the closure of PMI Canada is a necessary step in the
fulfillment of its five-point plan to allow PMI to focus on the company's core
business and maintenance of financial strength," stated Janet Martin,
President and CEO, PMI Canada.
"This was a difficult decision driven by market conditions and PMI
continues to have a positive view of mortgage insurance opportunities in the
Canadian mortgage market," said Steve Smith, Chairman and CEO of PMI. "We
appreciate the welcome we received from market participants and the
cooperation extended by the Government of Canada."
Mr. Smith continued, "Our colleagues at PMI Canada have demonstrated
commitment of the highest order to PMI and we thank them for their dedication,
perseverance and professionalism in establishing and building a solid
foundation in Canada.
"PMI continues to focus on the strategy laid out in its five-point plan.
We remain committed to executing our five-point plan for progress while
focusing on sustainable homeownership and booking high quality business,"
PMI Canada has begun the wind down process with a top priority of
continuing to meet customer needs while exploring arrangements to transition
existing insurance coverage to another approved Canadian mortgage insurer.
About PMI Canada
PMI Mortgage Insurance Company Canada (PMI Canada), a subsidiary of The
PMI Group, Inc. (NYSE: PMI), was established to serve the needs of residential
mortgage lenders and investors in Canada. PMI Canada is licensed to offer
loan-level primary mortgage insurance for residential mortgages as well as
portfolio insurance, which is mortgage insurance applied to a specific group
of loans. PMI's products protect lenders and investors against losses
associated with borrower default on residential mortgage loans. For more
Cautionary Statement: Statements in this 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. Many factors could cause actual results and
developments to differ materially from those expressed or implied by
forward-looking statements, including changes in business and other
conditions, including general market conditions in the United States and
Canada. Risks and uncertainties are discussed in PMI's SEC filings, including
its Form 10-K for the year ended December 31, 2007 and its Form 10-Q for the
quarter ended March 31, 2008. PMI undertakes no obligation to update
For further information:
For further information: Investor Contact (U.S.), Bill Horning, (925)
658-6193; Media Contact (U.S.), Tom Taggart, (925) 658-6511; Media Contact
(Canada), Caroline Spivak, (416) 645-8281