PMI's Operating Earnings Up, Net Off

PMI Group Inc. said it wrote 55% more insurance in the first quarter and boosted per-share operating earnings by 14%, though net income fell 6.8%.

Its PMI Mortgage Insurance Co. wrote $4.8 billion of mortgage insurance, up from $3.1 billion a year earlier. Operating earnings came to $1.24 a share.

Net income totaled $45.8 million, or $1.40 per share, down from $49.2 million, or $1.43. Capital gains fell from $18.3 million to $8 million

San Francisco-based PMI Group is "well on its way to achieving both market share and insurance in force goals for 1998," said W. Roger Haughton, president and chief executive officer.

Revenues rose to $150.6 million, from $147.5 million a year earlier.

Delinquency and claims results are improving because of the strength of California's housing markets, the company said. Overall, payment of direct claims fell 12%, to $32.9 million. The drop was even sharper in California- 31%, to $18.2 million.

In default on March 31 were 2.36% of PMI's insured loans, up from 2.22% a year earlier but down from 2.38% on Dec. 31.

PMI is the third-largest private mortgage insurer in the United States as measured by insurance in force at yearend.

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