Slide 1: The PMI Group, Inc.
Exhibit 99.1 The PMI Group, Inc.
Slide 2: Cautionary Statement
Cautionary Statement: Statements in this presentation 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. Forward-looking statements include statements relatin
Slide 3: Business Strategy
Business Strategy PMI intends to deliver shareholder value by Becoming a global provider of credit enhancement Multiple asset and risk classes Expanding domestically and internationally Leveraging core competencies Diversifying domestic and international credit enhancement products Goal of 50% of ne
Slide 4: Company Highlights
Company Highlights Significant value in existing US insurance in force 66% of IIF originated since January 2003* Affordable mortgage rates drive home purchase activity Minority household formation and increasing homeownership rates Int’l mortgage insurance* PMI Australia net income year-to-date up 3
Slide 5: Business Segments
Business Segments Global Credit Enhancement U.S. MORTGAGE INSURANCE Traditional mortgage lenders (bankers, brokers, commercial banks) Credit Unions High LTV market growing faster than overall mortgage market Nationwide home price appreciation INTERNATIONAL MORTGAGE INSURANCE Leading LMI provider: Au
Slide 6: US Mortgage Insurance
US Mortgage Insurance pM
Slide 7: US Mortgage Insurance Operations
US Mortgage Insurance Operations Provider of primary and mortgage pool insurance High loan-to-value credit enhancement provider #2 market share position in U.S. $35 billion of new insurance written since January 2004 (including CMG)* $119 billion of domestic insurance in force (including CMG)* $2.5
Slide 8: PMI Mortgage Insurance Co.
PMI Mortgage Insurance Co. $104.8 billion Insurance in force (excluding CMG) 2004 25% 2003 41% 16% 2002 2001 8% Insurance in force by book year 2% 2000 1999 3% 1998 2% 0.5% 1997 1996 0.5% 2% 1995 40% 30% 20% 10% 0% 50% % of Insurance in force As of September 30, 2004
Slide 9: US Mortgage Insurance Operations: Credit Profile
US Mortgage Insurance Operations PMI Insurance in force credit profile (Excluding CMG) Sept, 2004 11.1% 15.2% 11.2% 3.3% Bulk Non-traditional FICO <620 FICO <575
Slide 10: Homeownership Rates
Homeownership Rates 80% 70% 60% 50% 40% 30% 20% 10% 0% US White Black Hispanic/Latino 2003 1994 Source: US Census Bureau
Slide 11: International Mortgage Insurance
International Mortgage Insurance
Slide 12: International Mortgage Insurance: Australia / New Zealand
International Mortgage Insurance: Australia / New Zealand Australia is the platform for our International Mortgage Insurance Strong Earnings Growth in 2004 21% growth in YTD earned premium first 9 months of 2004 vs. 2003 Market dynamics Strong housing demand has led to property price appreciation St
Slide 13: International Mortgage Insurance: Europe
International Mortgage Insurance: Europe The European MI market is in the early development stage. We have had good early success developing customers and demand AA S&P and Fitch; Aa3 Moody’s Acquired UK MI business from R&SA Market Dynamics: Large volume of EU mortgage debt (60% of US) Growing seco
Slide 14: Financial Guaranty
Financial Guaranty
Slide 15: FGIC Transaction Highlights
FGIC Transaction Highlights Transaction Terms Acquisition Price Multiple of Book Value Multiple of 2002 Earnings $1.9 billion(a) 0.93x(b) 11.0x (a) After dividend paid to GE of approximately $284 million. Includes GE’s common and preferred ownership interest. (b) Excludes FAS 115 and GE dividend. Bo
Slide 16: FGIC Business Overview
FGIC Business Overview 9/30/04 INSURED PORTFOLIO International 0.1% Non-Municipal 13.3% Municipal 86.6% 9/30/04 MUNICIPAL INSURED PORTFOLIO Other 2.5% Transportation & Education 16.8% Water & Sewer 15.8% Tax-Supported 64.9% Leading triple-rated monoline financial guaranty company 91% of portfolio in
Slide 17: FGIC Opportunities
FGIC Opportunities Potential for broad-based expansion into diverse MBS and selected ABS sectors Capacity-constrained sectors offer unique opportunity for ‘newcomer’ FGIC Expansion of FGIC’s international business operations Western Europe’s structured finance and public finance Followed by Australi
Slide 18: 2004 Guidance
2004 Guidance U.S. Mortgage total incurred losses: $220 million - $240 million International net income growth: $16 million - $20 million U.S. insurance in force growth: 0% - 1% Earnings per share accretion from FGIC: $0.20 - $0.30 Consolidated pre-tax investment yield: 4.5% - 5.0%
Slide 19: Contact
Contact GLEN CORSO Group Senior Vice President 925-658-6429 CORPORATE CAPITAL MANAGEMENT AND CORPORATE RELATIONS The PMI Group, Inc. 3003 Oak Road Walnut Creek, CA 94597