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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 18, 2000
THE PMI GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-13664 94-3199675
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
601 Montgomery Street, San Francisco, California 94111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (415) 788-7878
__________________________________________________________________________
(Former name or former address, if changed since last report.)
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Item 5. Other Events
During The PMI Group, Inc.'s ("PMI") third quarter 2000 earnings conference
call, PMI announced that it expected that primary loss reserves should remain
relatively flat for the balance of 2000 and into 2001, assuming there is no
significant change in credit conditions.
Cautionary Statement: The above statement is a forward-looking statement within
the meaning of the Private Securities Litigation Reform Act of 1995. This
forward-looking statement is subject to a number of risks and uncertainties
including, but not limited to, the following factors that could cause the
Company's primary loss reserves to be higher than the levels expressed above:
PMI establishes loss reserves based upon estimates of the claim rate and average
claim amounts, as well as the estimated costs, including legal and other fees,
of settling claims. Such reserves are based on estimates, which are regularly
reviewed and updated. There can be no assurance that PMI's reserves will prove
to be adequate to cover ultimate loss development on incurred defaults. The
Company's financial condition and results of operations could be materially and
adversely affected if PMI's reserve estimates are insufficient to cover the
actual related claims paid and expenses incurred.
A number of factors affecting PMI and the mortgage industry in general could
cause claims on policies issued by PMI to increase and this could materially
adversely affect the Company's financial condition and results of operations.
The loss experience of PMI could be materially and adversely affected by
economic recession, declining housing values, higher employment rates,
deteriorating borrower credit, rising interest rates, legislation impacting
borrowers' rights, or any combination of such factors.
Any or all of these factors could affect the Company and cause PMI's performance
to differ materially from the forward-looking statement contained herein. Other
risks and uncertainties that could affect the Company are discussed in PMI's
various Securities and Exchange Commission filings.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
The PMI Group, Inc.
(Registrant)
October 19, 2000 By: /s/ Victor J. Bacigalupi
Victor J. Bacigalupi
Executive Vice President,
General Counsel and Secretary
