PMI further delays filing 10-K
Written on March 11, 2008
The PMI Group Inc. said late Monday it would further delay its fourth-quarter and full-year 2007 financial results because of continued delays in obtaining final year-end 2007 financials from FGIC Corp.
The Walnut Creek mortgage insurer owns a 42 percent stake in bond insurer FGIC. PMI (NYSE: PMI) now expects to deliver its financial reports before the market opens on March 17.
The company also expects to file its annual report with the Securities and Exchange Commission March 17.
On March 3, PMI reported a preliminary fourth-quarter net loss of $236 million in its U.S. mortgage insurance division and said it would file its full results and its annual report on March 12. At the time, PMI said in a filing with the SEC, "FGIC has informed (PMI Group) that it is in the process of completing its financial statements, but that it has not been able to do so due to the time and effort involved in determining the amount of loss reserves related to residential mortgage-backed securities and collateralized debt obligations of asset-backed securities."
PMI is conducting an analysis to determine whether the value of its investment in FGIC was impaired as of Dec http://payday-badcredit.com. 31, 2007. This analysis cannot be completed until the company receives the final financial information from FGIC necessary for the company to complete its consolidated financial statements.
FGIC and other bond insurers such as Ambac and MBIA, which insure public finance and structured finance obligations such as municipal bonds, have been hit hard by the credit and liquidity crisis, and have been struggling to retain their credit ratings and shore up capital.
PMI stock closed at $5.79 Monday, down 3.34 percent, or 20 cents.
Filed in: finance.