Bloomberg News

PMI Says Investor Ends Talks After Weighing Stake

April 01, 2013

PMI Group Inc. (PPMIQ:US), the mortgage insurer that filed for bankruptcy protection in 2011, said a “well- known private-equity investor” ended talks about taking a minority stake in the reorganized company.

“The potential investor recently terminated such negotiations, and the company expects not to proceed with a transaction,” San Ramon, California-based PMI said today in a regulatory filing.

The insurer said it hasn’t yet decided whether it will pursue other outside investors. PMI didn’t give a reason why the talks, disclosed in December, ended.

A rebound in the housing market is fueling investor interest in mortgage insurance after companies like PMI and Triad Guaranty Inc. (TGIC:US) were hobbled by losses in the real estate slump. NMI Holdings Inc. raised $550 million last year to open a mortgage insurer, and MGIC Investment Corp. (MTG:US) and Radian Group Inc. (RDN:US) have sold common stock and convertible senior notes this year to bolster their units that back home loans.

To contact the reporter on this story: Noah Buhayar in New York at nbuhayar@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net


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