Adjusting for the cost of its U.S. mortgage insurance losses led PMI Group
PMI's net loss of $126.8 million for this quarter improved from a net loss of $157.0 million for the first quarter of 2010. Reserves for losses and loss adjustment expenses fell to $2.9 billion, from $3.2 billion as of March 31, 2010. Revenue rose 11% year over year, but this gain owed to the appreciation in fair value of debt instruments. Alas, it doesn't really imply an improvement in the company's overall revenue-generating capacity.
In fact, most of PMI's revenue items have declined from the year-ago period. Premiums earned in the quarter fell by 21%, while net investment income dropped by 37%.
The Foolish bottom line
As I had mentioned in my article on Genworth Financial
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