PMI Group Inc. has agreed to buy MGICA Ltd., an Australian mortgage insurer, from AMP General Insurance Holdings Ltd. for $77.6 million.

PMI said the deal will add immediately to earnings.

The purchase is expected to close in the third quarter, pending approvals by U.S. and Australian regulators. PMI was advised by Morgan Stanley Dean Witter; Allen, Allen & Helmsley; and Deloitte & Touche.

With 25% market share, MGICA is the second-largest private mortgage insurer in Australia.

PMI is the second-largest U.S. mortgage insurer in the first quarter, based on new insurance written.

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