PMI Provides Statement on Prime Focus of U.S. Mortgage Insurance Business

PMI Provides Statement on Prime Focus of U.S. Mortgage Insurance Business

March 16, 2007

Presentation Highlights Portfolio Characteristics


    WALNUT CREEK, Calif., March 16 /Xinhua-PRNewswire/ --
In response to current conditions affecting the mortgage
market, The PMI Group, Inc. (NYSE: PMI) today posted a
presentation outlining the characteristics of the Company's
mortgage insurance portfolio in the United States on its
website at http://www.pmigroup.com/shareholders .

    ( Logo: 
http://www.newscom.com/cgi-bin/prnh/20061023/SFM058LOGO )

    "In the current market, we believe it's important
to differentiate ourselves and clarify the prime focus of
our business in the United States," said Steve Smith,
CEO of The PMI Group, Inc. "Our principal focus is on
sustainable homeownership for individuals and families
purchasing homes with less than a 20 percent down payment
who have 'A' or prime quality credit. Ultimately we believe
that the increased recognition of risk in the mortgage
marketplace will be a positive for PMI and the market
overall."

    Although there is no official definition of less than
'A' quality loans, often referred to as subprime, the
mortgage industry generally defines them as loans having
credit scores of 619 or below. Some market participants use
a score of 580 or 575 or below as the demarcation line. At
2006 year end, 92 percent of PMI's U.S. portfolio's risk in
force (RIF) was 'A' or prime credit quality, defined as
having a credit score of 620 or higher. The remaining 8
percent is composed of 5.9 percent with credit scores from
575 to 619, with only 2.1 percent having credit scores
below 575. The less than 'A' quality loans PMI does insure
are balanced by borrower, loan, and property
characteristics that mitigate against risk layering.

    According to the Mortgage Bankers' Association,
subprime loans comprise about 14 percent of the total
number of outstanding mortgages in the United States.  

    David Katkov, President of PMI Mortgage Insurance Co.,
PMI's U.S. subsidiary, explained, "Our mortgage
insurance portfolio in the United States is focused in core
housing, meaning loans of moderate size to first-time
homebuyers purchasing a primary residence. The majority of
the loans we insure have fixed rates. We believe that we
have taken a prudent approach, managing the dispersion of
risk by credit score, loan and property type, geographic
region, and other key characteristics."

    General Characteristics of PMI's U.S. Mortgage
Insurance Portfolio as of December 31, 2006: 

    -- Prime loans (credit scores of 620 and above)
represent 92 percent of 
       primary risk in force. 
    -- Fixed rate loans account for 81 percent of primary
risk in force. 
    -- Approximately 89 percent of loans are for primary
residences.
    -- Average primary loan size is $142,500.
    -- The portfolio is well diversified across all 50
states.

     The presentation is available at
http://www.pmigroup.com/shareholders .

    About The PMI Group, Inc.

    The PMI Group, Inc. (NYSE: PMI), headquartered in
Walnut Creek, CA, is an international provider of credit
enhancement products that promote homeownership and
facilitate mortgage transactions in the capital markets.
Through its wholly owned subsidiaries and unconsolidated
strategic investments, the company offers residential
mortgage insurance and credit enhancement products
domestically and internationally, financial guaranty
insurance, and financial guaranty reinsurance. Through its
subsidiaries, The PMI Group, Inc. is one of the world's
largest providers of private mortgage insurance with
operations in the United States, Australia, New Zealand,
and the European Union, as well as one of the largest
providers of mortgage guaranty reinsurance in Hong Kong. 
For more information: http://www.pmigroup.com.

    Cautionary Statement: Statements in this release that
are not historical facts, or 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 our beliefs with respect to the
diversification and performance of our U.S. mortgage
insurance portfolio and with respect to our credit risk
management approach.  Readers are cautioned that
forward-looking statements by their nature involve risk and
uncertainty because they relate to events and depend on
circumstances that will occur in the future.  Many factors
could cause actual results and developments to differ
materially from those expressed or implied by
forward-looking statements.  Our US Mortgage Insurance
Operations' losses incurred may be negatively affected by
many factors including, among others, national or regional
recessions, declines in housing values, higher unemployment
rates, higher levels of consumer credit, deteriorating
borrower credit, higher interest rates, war or terrorist
activity, adverse weather events, the seasoning of our U.S.
mortgage insurance portfolio, and unexpected performance
within our U.S. mortgage insurance portfolio, which
includes high LTV loans, ARMs, less-than-A quality loans,
interest only loans, and payment option ARMs, for which we
generally expect higher default and claim rates.  Other
risks and uncertainties are discussed in our SEC filings,
including our Form 10-K for the year ended December 31,
2006.  We undertake no obligation to update forward-looking
statements.


    For more information, please contact:

    Investors: 
     Bill Horning
     The PMI Group, Inc. 
     Tel:   [phone]

    Media: 
     Beth Haiken 
     The PMI Group, Inc. 
     Tel:   [phone]