PMI Group posts loss

(Reuters) - Mortgage insurer PMI Group Inc (PMI.N: Quote, Profile, Research, Stock Buzz) posted a quarterly loss, its third in a row, hurt by losses stemming from its mortgage insurance operations and exposure to troubled bond insurer, FGIC Corp.

The Walnut Creek, California-based company reported a first-quarter loss of $274 million, or $3.37 a share, compared with a profit of $102 million, or $1.16 a share, for the year-ago period.

PMI said it fully wrote down the value of its investment in FGIC Corp, which resulted in a loss of $88 million in the quarter. PMI's investment had a carrying value of $103.6 million at end December 2007.

PMI is a part owner of FGIC along with several others, including private equity firms Blackstone Group LP (BX.N: Quote, Profile, Research, Stock Buzz), Cypress Group and CIVC Partners LP.

The company said it would not be incurring further losses on the FGIC investment in future quarters and is under no obligation to provide FGIC with additional capital.

Partially offsetting the quarterly loss was an increase in net premiums, which rose 7.2 percent to $207.8 million. Total claims paid more than doubled to $162.6 million from $69.3 million a year earlier.

PMI shares closed at $5.97 on the New York Stock Exchange Friday.

(Reporting by Dinesh Nair; Editing by Anil d'Silva)