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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) April 26, 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
On April 26, 2000, The PMI Group, Inc. issued a press release relating to
projected operating earnings of the Company for the year 2001. The information
contained in this Form 8-K should be substituted in its entirety for the
information contained in the section of the press release entitled "Cautionary
Statement."
The Company's statements in the press release that are not historical facts, and
that relate to future plans, events or performance are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include, but are not limited to, PMI's
estimate that operating earnings for the year 2001 likely will increase between
17 and 19 percent, PMI's belief that stronger persistency and contributions from
its international operations, investments and subsidiaries will continue to
drive growth, and the Company's belief that it may experience slightly higher
losses and claims in 2001. These forward-looking statements are subject to a
number of risks and uncertainties including, but not limited to, the following
factors that could cause the Company's actual results to differ materially from
those expressed herein:
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. A decrease in
persistency, resulting from policy cancellations of older books of business,
could materially impact the Company's financial results of operations. While
stable or rising interest rates may positively contribute to the persistency
rate, declining interest rates could adversely affect the Company's persistency
rate, its premium yield and its financial condition and results of operations.
The Company's financial condition and results of operations could be
materially and adversely affected by delays in the introduction by PMI of new
products or a decrease in customer demand for new and existing products. In
addition, there can be no assurance that newly introduced products will be as
profitable as the Company's existing products or programs.
The Company's financial condition and results of operations may be
materially and adversely affected by changes to the current legal environment,
including, but not limited to, legislation that would affect the ability of
Fannie Mae or Freddie Mac to offer a substitute for mortgage insurance,
legislation that would increase statutory lending limits of FHA and VA, and
proposed risk-based capital regulations developed by the Office of Federal
Housing Enterprise Oversight. PMI's financial condition and results of
operations may be materially and adversely affected by a reduction in the amount
of mortgage insurance coverage required by Fannie Mae and Freddie Mac.
The performance of the Company's Australian subsidiary could be
materially and adversely affected by various factors affecting the Australian
economy including, but not limited to, a weakening in the demand for housing,
interest rate volatility, and/or an increase in claims. The performance of the
Company's other strategic investments could materially and adversely be affected
by changes in the real estate, mortgage lending, mortgage servicing and
financial guaranty markets; future movements in interest rates; those
operations' future financial condition and performance; the ability of those
entities to execute future business plans; and PMI's
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dependence upon management to operate those companies in which PMI does not own
a controlling share.
Any or all of these factors could affect the Company and cause PMI's
performance to differ materially from the forward-looking statements contained
in this press release. Other risks and uncertainties that could affect the
Company are discussed in PMI's various Securities and Exchange Commission
filings.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
None.
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)
May 1, 2000 By: /s/ Victor J. Bacigalupi
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Victor J. Bacigalupi
Executive Vice President,
General Counsel and Secretary
