Exhibit 99.1

	NEWS RELEASE
	Investors and Media Contacts:
	Bill Horning / Tom Taggart
	925.658.6193 / 925.658.6511

THE PMI GROUP, INC. REPORTS

FOURTH QUARTER AND YEAR END 2008 FINANCIAL RESULTS

Walnut Creek, CA, March 16, 2009 - The PMI Group, Inc. (NYSE: PMI) (the “Company”) today reported a loss from continuing operations for the fourth quarter of 2008 of $181.0 million, or $2.22 per basic and diluted¹ share. The loss from continuing operations for the full year of 2008 was $887.2 million, or $10.90 per basic and diluted¹ share. The loss from continuing operations for the fourth quarter of 2008 was primarily due to losses and loss adjustment expenses (LAE) in the U.S. Mortgage Insurance Operations and PMI Europe, a decrease in premiums earned and higher net realized investment losses, primarily from the impairment of certain corporate preferred equity securities in U.S. Mortgage Insurance Operations’ investment portfolio.

	Three Months Ended December 31,
(Dollars in thousands, except per share data)	2008			2007
Loss from continuing operations	$	(180,993	)	$	(1,034,303	)
Income from discontinued operations, net of income taxes*		2,148			19,884
Net loss	$	(178,845	)	$	(1,014,419	)
Diluted loss from continuing operations per share	$	(2.22	)	$	(12.76	)
Diluted income from discontinued operations per share		0.03			0.25
Diluted net loss per share	$	(2.19	)	$	(12.51	)

* Includes the results of PMI Australia, PMI Asia and PMI Guaranty.

The PMI Group, Inc. Full Year Results
	Full Year Ended December 31,
(Dollars in thousands, except per share data)	2008			2007
Loss from continuing operations	$	(887,188	)	$	(1,008,682	)
(Loss) income from discontinued operations, net of income taxes*		(41,320	)		93,356
Net loss	$	(928,508	)	$	(915,326	)
Diluted loss from continuing operations per share	$	(10.90	)	$	(11.92	)
Diluted (loss) income from discontinued operations per share		(0.50	)		1.11
Diluted net loss per share	$	(11.40	)	$	(10.81	)

* Includes the results of PMI Australia, PMI Asia and PMI Guaranty.

¹ Due to the net loss in the fourth quarter and full year of 2008, dilutive components of shares outstanding such as stock options were not included in fully diluted shares outstanding as their inclusion would have been anti-dilutive.

Fourth Quarter 2008 Update:

^¡ The Company sold PMI Asia for 92.5% of the net tangible asset value, or approximately $51.6 million, in an all cash sale.

Consolidated Continuing Operating Results

Consolidated net premiums written for the fourth quarter and full year totaled $177.5 million and $768.9 million, respectively, compared with $203.1 million and $813.9 million for the same periods one year ago. The decreases were due primarily to lower levels of new insurance written and premium refunds related to rescissions of insurance previously written.

Consolidated premiums earned for the fourth quarter and full year were $184.1 million and $786.2 million, respectively, compared with $210.0 million and $815.4 million for the same periods one year ago. The decreases were due primarily to lower levels of new insurance written and premium refunds related to rescissions of insurance previously written, partially offset by higher persistency in the U.S. Mortgage Insurance Operations.

Consolidated losses and LAE, which includes paid claims, loss adjustment expenses and additions to reserve for losses, for the fourth quarter and full year were $404.5 million and $1,899.3 million, respectively, compared with $542.7 million and $1,122.9 million for the same periods one year ago. The decrease in the fourth quarter compared with the same period one year ago was primarily due to lower net loss reserve additions as a result of a larger benefit from captive reinsurance in U.S. Mortgage Insurance Operations, partially offset by higher paid claims in U.S. Mortgage Insurance Operations and PMI Europe, as well as higher loss reserves in PMI Europe.

Consolidated reserve for losses and LAE totaled $2.7 billion as of December 31, 2008 compared with $2.5 billion as of September 30, 2008 and $1.2 billion as of December 31, 2007. Reserves for losses and LAE in the U.S. Mortgage Insurance Operations increased in the fourth quarter of 2008 by a gross amount of $274.9 million to $2.6 billion and was partially offset by a $90.0 million credit from reinsurance recoverables, primarily from captive reinsurance agreements. The increase in this quarter, and the year, for reserves for losses and LAE was primarily due to increases in notices of default in the U.S.

Consolidated other underwriting and operating expenses for the fourth quarter and full year were $58.6 million and $218.6 million, respectively, compared with $47.0 million and $192.9 million for the same periods one year ago. The increases in other underwriting and operating expenses in the fourth quarter and full year 2008 compared to the corresponding periods in 2007 were primarily due to severance related costs from workforce reductions.

The PMI Group, Inc. Fourth Quarter Results by Segment
	Fourth Quarter Total Revenues						Fourth Quarter (Loss) Income from     Continuing Operations
(Dollars in millions, except per share data)	2008			2007			2008			2007
U.S. Mortgage Insurance Operations2	$	184.1		$	231.9		$	(174.1	)	$	(236.0	)
International Operations3		(8.9	)		(3.0	)		(30.2	)		(30.8	)
Financial Guaranty4		(0	)		(38.5	)		16.8			(765.4	)
Corporate and Other5		15.8			18.1			6.5			(2.1	)
Total	$	191.0		$	208.5		$	(181.0	)	$	(1,034.3	)
Diluted (Loss) from Continuing Operations Per Share1							$	(2.22	)	$	(12.76	)

May not total due to rounding.

The PMI Group, Inc. Year to Date Results by Segment
	Full Year Ended December 31 Total Revenues						Full Year Ended December 31 (Loss) Income from     Continuing Operations
(Dollars in millions, except per share data)	2008			2007			2008			2007
U.S. Mortgage Insurance Operations2	$	839.4		$	916.0		$	(709.5	)	$	(190.8	)
International Operations3		15.8			10.6			(87.0	)		(35.3	)
Financial Guaranty4		(90.9	)		(38.5	)		(124.0	)		(734.8	)
Corporate and Other5		143.4			35.2			33.4			(47.8	)
Total	$	907.8		$	923.2		$	(887.2	)	$	(1,008.7	)
Diluted (Loss) from Continuing Operations Per Share							$	(10.90	)	$	(11.92	)

May not total due to rounding.

Supplemental Financial Information

• The PMI Group, Inc.’s Fourth Quarter 2008 Financial Supplement, Net Operating Income (NOI) Reconciliation, and Supplemental Portfolio Information can all be found at www.pmi-us.com under Investor Relations.

ABOUT THE PMI GROUP, INC.

The PMI Group, Inc. (NYSE: PMI), headquartered in Walnut Creek, CA, provides innovative credit, capital, and risk transfer solutions that expand homeownership and fund essential services for our customers and the communities they serve. Through its wholly owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products. For more information: www.pmi-us.com.

² “U.S. Mortgage Insurance Operations” includes the results of PMI Mortgage Insurance Co. (PMI), affiliated U.S. reinsurance companies and equity in earnings from CMG Mortgage Insurance Company (CMG MI).

³ “International Operations” includes the results of PMI Europe and PMI Canada.

⁴ “Financial Guaranty” includes our equity investments in FGIC Corporation (FGIC) and RAM Holdings Ltd. (RAM Re).

⁵ The “Corporate and Other” segment primarily consists of the holding company, contract underwriting operations and intercompany eliminations.

Cautionary Statement:

Statements in this press release and supplements 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. 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. Such factors include, among others:

• Potential significant future losses as a result of changes in economic and market conditions, such as a deepening of the current economic recession; decreases in housing demand, mortgage originations or housing values; a further reduction in the liquidity in the capital markets or further contraction of credit markets; further increases in unemployment rates; changes in interest rates or consumer confidence; and/or changes in credit spreads;

• our expectation that, as a result of continued losses, we will need to raise significant additional capital (which could take the form of, among other things, debt or equity offerings; relief under the U.S. Treasury’s Financial Stability Plan; and/or reinsurance) and that such additional capital may be necessary in 2009;

• the risk that pending discussions with lenders to amend financial covenants and events of default under our credit facility are not completed timely or satisfactorily;

• the risk that we may be unable to maintain minimum regulatory risk-to-capital and policyholders surplus requirements;

• the limitations we have placed on new business writings and the concentration of our business among a relatively small number of large customers;

• the potential future impairment of the value of certain securities held in our investment portfolios as a result of the significant volatility in the capital markets;

• the potential that our actual losses may substantially exceed our current loss reserve estimates or that our underwriting policies may not anticipate all risks and/or the magnitude of potential loss;

• heightened regulatory and litigation risks faced by the financial services industry, the mortgage insurance industry and PMI;

• the aging of our mortgage insurance portfolio and changes in severity or frequency of losses associated with our mortgage insurance policies;

• the performance of our insured portfolio of higher risk loans, such as Alternative-A (“Alt-A”) and less than-A loans, and adjustable rate and interest-only loans, which have resulted in increased losses in 2007 and 2008 and are expected to result in further losses;

• the risk that Fannie Mae and/or Freddie Mac (collectively, the “GSEs”) determine that we are no longer an eligible provider of mortgage insurance;

• changes in persistency rates of our mortgage insurance policies caused by, among other things, changes in refinancing activity and home values;

• further downgrades or other ratings actions with respect to our credit ratings or insurer financial strength ratings assigned by the major rating agencies;

• heightened competition from the Federal Housing Administration and the Veterans’ Administration or other private mortgage insurers;

• potential changes in the charters or business practices of the GSEs, the largest purchasers of mortgages;

• volatility in our earnings caused by changes in the fair value of our derivative contracts and our need to reevaluate the premium deficiencies in our mortgage insurance business on a quarterly basis; and

• potential additional losses in our European operations as a result of deteriorating economic conditions and the potential that we must make additional capital contributions to those operations pursuant to a capital support agreement.

Other risks and uncertainties are discussed in our SEC filings, including in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2008, filed March 16, 2009. We undertake no obligation to update forward-looking statements.

###

THE PMI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended December 31,						Year Ended December 31,
	2008			2007			2008			2007
	(Unaudited)						(Audited)
	(Dollars and shares in thousands, except per share data)
Net premiums written	$	177,543		$	203,074		$	768,895		$	813,922
Revenues
Premiums earned	$	184,122		$	209,968		$	786,159		$	815,440
Net loss from credit default swaps		(11,714	)		(9,483	)		(11,275	)		(14,447	)
Net investment income		31,552			32,266			138,377			132,552
Net realized investment (losses) gains		(26,348	)		11,151			(48,342	)		13,860
Change in fair value of certain debt instruments		11,647			—			123,595			—
Impairment of unconsolidated subsidiaries		—			(38,499	)		(90,868	)		(38,499	)
Other income		1,722			3,087			10,141			14,279
Total revenues		190,981			208,490			907,787			923,185
Losses and expenses
Losses and loss adjustment expenses		404,457			542,722			1,899,264			1,122,898
Amortization of deferred policy acquisition costs		4,512			48,830			18,285			87,683
Other underwriting and operating expenses		58,606			47,014			218,583			192,917
Interest expense		11,309			8,383			41,007			33,391
Total losses and expenses		478,884			646,949			2,177,139			1,436,889
Loss before equity in losses from unconsolidated subsidiaries and income taxes		(287,903	)		(438,459	)		(1,269,352	)		(513,704	)
Equity in losses from unconsolidated subsidiaries		(5,972	)		(791,155	)		(51,802	)		(741,500	)
Loss from continuing operations before income taxes		(293,875	)		(1,229,614	)		(1,321,154	)		(1,255,204	)
Income tax benefit from continuing operations		(112,882	)		(195,311	)		(433,966	)		(246,522	)
Loss from continuing operations		(180,993	)		(1,034,303	)		(887,188	)		(1,008,682	)
Income (loss) from discontinued operations, net of taxes		2,148			19,884			(41,320	)		93,356
Net loss	$	(178,845	)	$	(1,014,419	)	$	(928,508	)	$	(915,326	)
Diluted loss from continuing operations per share	$	(2.22	)	$	(12.76	)	$	(10.90	)	$	(11.92	)
Diluted income (loss) from discontinued operations per share		0.03			0.25			(0.50	)		1.11
Diluted net loss per share	$	(2.19	)	$	(12.51	)	$	(11.40	)	$	(10.81	)

THE PMI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	December 31, 2008		December 31, 2007
	(Audited)		(Audited)
	(Dollars and shares in thousands, except per share data)
Assets
Investments	$	2,221,595	$	2,437,280
Cash and cash equivalents		1,483,313		354,508
Investments in unconsolidated subsidiaries		150,377		309,800
Reinsurance recoverables		482,678		36,917
Deferred policy acquisition costs		34,791		18,305
Property, equipment and software, net of accumulated depreciation and amortization		131,211		157,308
Other assets		320,434		302,767
Assets - discontinued operations- held for sale		—		1,453,555
Total assets	$	4,824,399	$	5,070,440
Liabilities
Reserve for losses and loss adjustment expenses	$	2,709,286	$	1,177,309
Unearned premiums		111,656		136,921
Debt		481,764		496,593
Other liabilities		243,468		178,275
Liabilities - discontinued operations - held for sale		—		568,380
Total liabilities		3,546,174		2,557,478
Shareholders’ equity		1,278,225		2,512,962
Total liabilities and shareholders’ equity	$	4,824,399	$	5,070,440
Basic shares issued and outstanding		81,688		81,120
Book value per share	$	15.65	$	30.98

Note: Please refer to The PMI Group, Inc. Fourth Quarter 2008 Financial Supplement for additional information.

The PMI Group, Inc.

Fourth Quarter 2008

Financial Supplement

THE PMI GROUP, INC. AND SUBSIDIARIES

FINANCIAL RESULTS AND STATISTICAL INFORMATION FOR THE PERIOD ENDED DECEMBER 31, 2008

Table of Contents

	Page
Notes to Financial Results and Statistical Information	3
Consolidated Results
Consolidated Statements of Operations	4
Consolidated Balance Sheets	5
Business Segments Results of Operations - Three Months Ended December 31, 2008 and 2007	6
Business Segments Results of Operations - Year Ended December 31, 2008 and 2007	7
Business Segments Balance Sheets	8
U.S. Mortgage Insurance Operations Segment Results
U.S. Mortgage Insurance Operations Segment Results of Operations and Balance Sheets	9
U.S. Mortgage Insurance Operations Portfolio Characteristics	10-12
U.S. Mortgage Insurance Operations Default Information	13
U.S. Mortgage Insurance Operations Analysis of Loss Reserves	14
CMG Mortgage Insurance Company Statistical Information	15
International Mortgage Insurance Operations Segment Results
International Operations Segment Results of Operations and Balance Sheets	16
PMI Europe Quarterly Financial Information	17
PMI Europe Statistical Information	18
Financial Guaranty Segment Results
Financial Guaranty Segment Results of Operations and Balance Sheets	19
Corporate and Other Segment Results
Corporate and Other Segment Results of Operations and Balance Sheets	20

Page 2

THE PMI GROUP, INC. AND SUBSIDIARIES

FINANCIAL RESULTS AND STATISTICAL INFORMATION FOR THE PERIOD ENDED DECEMBER 31, 2008

Notes to Financial Results and Statistical Information:

(1) Effective January 1, 2008, The PMI Group, Inc. (the “Company”) adopted SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities—Including an Amendment of FASB Statement No. 115 (“SFAS No. 159”). The Company elected to adopt the fair value option for certain corporate debt on the adoption date. The Company’s net income included a $11.6 million and $123.6 million gain for the three months and year ended December 31, 2008, respectively, related to fair value adjustments for these debt instruments.

(2) At September 30, 2008, the carrying value of our investment in RAM Reinsurance Company, Ltd. (“RAM Re”) was $6.5 million. During the fourth quarter of 2008, we recognized equity in losses from RAM Re of $6.5 million which decreased our investment in RAM Re to zero. Additionally, the Company impaired its investment in FGIC in the first quarter and reduced the carrying value of its investment in FGIC to zero. This reduction resulted in an $88.0 million net realized investment loss in the consolidated statement of operations and $15.6 million loss in other comprehensive income in the first quarter. Due to the Company’s impairment of its investment in FGIC to zero, the Company did not recognize any equity in earnings (losses) from FGIC in 2008.

(3) Other underwriting and operating expenses in the International segment include severance costs related to the reconfiguration of PMI Europe and disposal costs related to PMI Canada in the third and fourth quarters of 2008.

(4) For the quarter and year ended December 31, 2008 and 2007, the Company’s equity in earnings (losses) from unconsolidated subsidiaries include CMG Mortgage Insurance Company, CMG Mortgage Reinsurance Company and CMG Mortgage Assurance Company (collectively, “CMG MI”), RAM Re and certain limited partnership interests.

(5) Due to the net loss in the quarter and year ended December 31, 2008 and 2007, normally dilutive components of shares outstanding such as stock options were not included in fully diluted shares outstanding as their inclusion would have been anti-dilutive.

(6) U.S. Mortgage Insurance Operations segment includes the operating results of PMI Mortgage Insurance Co. and affiliated U.S. mortgage insurance and reinsurance companies (collectively, “PMI”). CMG Mortgage Insurance Company and its affiliates are accounted for under the equity method of accounting and their operating results are in equity in earnings from unconsolidated subsidiaries.

(7) International Operations segment includes PMI Europe and PMI Canada. PMI Australia and PMI Asia are reported as discontinued operations for all periods presented.

(8) Financial Guaranty segment represents our equity investments in FGIC Corporation and RAM Re. PMI Guaranty Co.’s (“PMI Guaranty”) operating results are reported as discontinued operations for all periods presented. The Company merged PMI Guaranty into its U.S. Mortgage Insurance Operations during the fourth quarter of 2008. See Note 2 above for discussion on impairment of the Company’s investments in RAM Re and FGIC.

(9) The Corporate and Other segment includes other income and related operating expenses of PMI Mortgage Services Co.’s investment income, change in fair value of certain debt instruments, interest expense, intercompany eliminations and corporate expenses of the Company; the results of Commercial Loan Insurance Corporation, WMAC Credit Insurance Corporation and equity in earnings (losses) from certain limited partnerships.

(10) The loss ratio is expressed as a ratio of losses and loss adjustment expenses (“LAE”) from continuing operations to premiums earned from continuing operations. The expense ratio is expressed as a ratio of the sum of amortization of deferred policy acquisition costs and other underwriting and operating expenses from continuing operations to net premiums written from continuing operations.

(11) Pool insurance includes modified pool, GSE pool, old pool and all other pool insurance products for U.S. Mortgage Insurance Operations. As of June 30, 2008, we adjusted pool risk in force to appropriately reflect the effect of loan repayments on risk limits.

(12) Loss severity is, for a given period, initial claims paid as a percentage of the total risk in force of loans for which claims were paid. Initial claims paid does not include supplemental and other payments.

(13) PMI’s persistency rate was calculated based upon the percentage of primary insurance in force at the beginning of a 12-month period that remains in force at the end of that period.

(14) The statutory risk-to-capital ratio is for PMI Mortgage Insurance Co. only.

(15) As of data, such as insurance in force, risk in force, policy in force and loans in default, are the same as the recent period end in the total column except for captive agreements which relate to NIW for the periods presented.

(16) Included in Supplemental and other is $8.2 million and $34.0 million for the three months and year ended December 31, 2008, respectively, recovered from two captive trust accounts due to the termination of captive agreements. The recovered amount was excluded from the calculation of average claim size for the three months and year ended December 31, 2008.

Note: The interim financial and statistical information contained in this material is unaudited. Certain prior periods’ information has been reclassified to conform to the current periods’ presentation.

The PMI Group, Inc.’s Investor Relations contacts:

Bill Horning	Kosta Karmaniolas
Vice President, Investor Relations and Corporate Capital Management and Analysis	Director, Investor Relations and Corporate Capital Management and Analysis
(925) 658-6193	(925) 658-6137

Page 3

THE PMI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended Dectember 31,						Year Ended December 31,
	2008			2007			2008			2007
	(Unaudited)						(Audited)
	(Dollars and shares in thousands, except per share data)
Net premiums written	$	177,543		$	203,074		$	768,895		$	813,922
Revenues
Premiums earned	$	184,122		$	209,968		$	786,159		$	815,440
Net loss from credit default swaps		(11,714	)		(9,483	)		(11,275	)		(14,447	)
Net investment income		31,552			32,266			138,377			132,552
Net realized investment (losses) gains		(26,348	)		11,151			(48,342	)		13,860
Change in fair value of certain debt instruments (1)		11,647			—			123,595			—
Impairment of unconsolidated subsidiaries (2)		—			(38,499	)		(90,868	)		(38,499	)
Other income		1,722			3,087			10,141			14,279
Total revenues		190,981			208,490			907,787			923,185
Losses and expenses
Losses and loss adjustment expenses		404,457			542,722			1,899,264			1,122,898
Amortization of deferred policy acquisition costs		4,512			48,830			18,285			87,683
Other underwriting and operating expenses (3)		58,606			47,014			218,583			192,917
Interest expense		11,309			8,383			41,007			33,391
Total losses and expenses		478,884			646,949			2,177,139			1,436,889
Loss before equity in losses from unconsolidated subsidiaries and income taxes		(287,903	)		(438,459	)		(1,269,352	)		(513,704	)
Equity in losses from unconsolidated subsidiaries (4)		(5,972	)		(791,155	)		(51,802	)		(741,500	)
Loss from continuing operations before income taxes		(293,875	)		(1,229,614	)		(1,321,154	)		(1,255,204	)
Income tax benefit from continuing operations		(112,882	)		(195,311	)		(433,966	)		(246,522	)
Loss from continuing operations		(180,993	)		(1,034,303	)		(887,188	)		(1,008,682	)
Income (loss) from discontinued operations, net of taxes		2,148			19,884			(41,320	)		93,356
Net loss	$	(178,845	)	$	(1,014,419	)	$	(928,508	)	$	(915,326	)
Diluted loss from continuing operations per share	$	(2.22	)	$	(12.76	)	$	(10.90	)	$	(11.92	)
Diluted income (loss) from discontinued operations per share		0.03			0.25			(0.50	)		1.11
Diluted net loss per share	$	(2.19	)	$	(12.51	)	$	(11.40	)	$	(10.81	)
Share data:
Basic weighted average common shares outstanding		81,661			81,120			81,423			84,645
Stock options and other dilutive components (5)		—			—			—			—
Diluted weighted average common shares outstanding (5)		81,661			81,120			81,423			84,645

Page 4

THE PMI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	December 31, 2008			December 31, 2007
	(Audited)			(Audited)
	(Dollars and shares in thousands, except per share data)
Assets
Investments:
Fixed income securities	$	1,997,466		$	2,018,148
Equity securities:
Common		5,593			117,251
Preferred		216,256			299,630
Short term investments		2,280			2,251
Total investments	$	2,221,595		$	2,437,280
Cash and cash equivalents		1,483,313			354,508
Investments in unconsolidated subsidiaries		150,377			309,800
Reinsurance recoverables		482,678			36,917
Deferred policy acquisition costs		34,791			18,305
Property, equipment and software, net of accumulated depreciation and amortization		131,211			157,308
Other assets		320,434			302,767
Assets - discontinued operations - held for sale		—			1,453,555
Total assets	$	4,824,399		$	5,070,440
Liabilities
Reserve for losses and loss adjustment expenses	$	2,709,286		$	1,177,309
Unearned premiums		111,656			136,921
Debt		481,764			496,593
Other liabilities		243,468			178,275
Liabilities - discontinued operations - held for sale		—			568,380
Total liabilities		3,546,174			2,557,478
Shareholders’ equity
Common stock		1,193			1,193
Additional paid-in capital, treasury stock and retained earnings		1,312,711			2,196,692
Accumulated other comprehensive (loss) income, net of deferred taxes		(35,679	)		315,077
Total shareholders’ equity		1,278,225			2,512,962
Total liabilities and shareholders’ equity	$	4,824,399		$	5,070,440
Basic shares issued and outstanding		81,688			81,120
Book value per share	$	15.65		$	30.98

Page 5

THE PMI GROUP, INC. AND SUBSIDIARIES

BUSINESS SEGMENTS RESULTS OF OPERATIONS - THREE MONTHS ENDED DECEMBER 31, 2008 AND 2007

	U.S. Mortgage Insurance Operations (6)			International Operations (7)			Financial Guaranty (8)			Corporate and Other (9)			Consolidated Total
	Three Months Ended December 31, 2008 (Unaudited)
	(Dollars in thousands)
Net premiums written	$	175,658		$	1,875		$	—		$	10		$	177,543
Revenues
Premiums earned	$	180,919		$	3,192		$	—		$	11		$	184,122
Net loss from credit default swaps		—			(11,714	)		—			—			(11,714	)
Net investment income		28,633			509			—			2,410			31,552
Net realized investment losses		(25,451	)		(896	)		—			(1	)		(26,348	)
Change in fair value of certain debt instruments (1)		—			—			—			11,647			11,647
Other income (loss)		6			(23	)		—			1,739			1,722
Total revenues (expenses)		184,107			(8,932	)		—			15,806			190,981
Losses and expenses
Losses and loss adjustment expenses		398,010			6,447			—			—			404,457
Amortization of deferred policy acquisition costs		4,129			383			—			—			4,512
Other underwriting and operating expenses (revenues)		52,237			12,216			—			(5,847	)		58,606
Interest expense		25			—			—			11,284			11,309
Total losses and expenses		454,401			19,046			—			5,437			478,884
(Loss) income before equity in (losses) earnings from unconsolidated subsidiaries and income taxes		(270,294	)		(27,978	)		—			10,369			(287,903	)
Equity in earnings (losses) from unconsolidated subsidiaries (4)		675			—			(6,453	)		(194	)		(5,972	)
(Loss) income from continuing operations before income taxes		(269,619	)		(27,978	)		(6,453	)		10,175			(293,875	)
Income tax (benefit) expense from continuing operations		(95,525	)		2,242			(23,296	)		3,697			(112,882	)
(Loss) income from continuing operations		(174,094	)		(30,220	)		16,843			6,478			(180,993	)
Income (loss) from discontinued operations, net of taxes		—			3,655			(1,507	)		—			2,148
Net (loss) income	$	(174,094	)	$	(26,565	)	$	15,336		$	6,478		$	(178,845	)
Loss ratio (10)		220.0	%
Expense ratio (10)		32.1	%
Combined ratio		252.1	%
	Three Months Ended December 31, 2007 (Unaudited)
	(Dollars in thousands)
Net premiums written	$	200,253		$	2,802		$	—		$	19		$	203,074
Revenues
Premiums earned	$	206,254		$	3,704		$	—		$	10		$	209,968
Net loss from credit default swaps		—			(9,483	)		—			—			(9,483	)
Net investment income		27,281			2,854			—			2,131			32,266
Net realized investment (losses) gains		(1,526	)		8			—			12,669			11,151
Impairment of unconsolidated subsidiaries		—			—			(38,499	)		—			(38,499	)
Other (loss) income		(86	)		(97	)		—			3,270			3,087
Total revenues (expenses)		231,923			(3,014	)		(38,499	)		18,080			208,490
Losses and expenses
Losses and loss adjustment expenses		520,611			22,111			—			—			542,722
Amortization of deferred policy acquisition costs		46,213			2,617			—			—			48,830
Other underwriting and operating expenses		22,717			5,897			—			18,400			47,014
Interest expense		33			—			—			8,350			8,383
Total losses and expenses		589,574			30,625			—			26,750			646,949
Loss before equity in earnings (losses) from unconsolidated subsidiaries and income taxes		(357,651	)		(33,639	)		(38,499	)		(8,670	)		(438,459	)
Equity in earnings (losses) from unconsolidated subsidiaries (4)		3,474			—			(794,637	)		8			(791,155	)
Loss from continuing operations before income taxes		(354,177	)		(33,639	)		(833,136	)		(8,662	)		(1,229,614	)
Income tax benefit from continuing operations		(118,160	)		(2,856	)		(67,767	)		(6,528	)		(195,311	)
Loss from continuing operations		(236,017	)		(30,783	)		(765,369	)		(2,134	)		(1,034,303	)
Income (loss) from discontinued operations, net of taxes		—			20,671			(787	)		—			19,884
Net loss	$	(236,017	)	$	(10,112	)	$	(766,156	)	$	(2,134	)	$	(1,014,419	)
Loss ratio (10)		252.4	%
Expense ratio (10)		34.4	%
Combined ratio		286.8	%

Page 6

THE PMI GROUP, INC. AND SUBSIDIARIES

BUSINESS SEGMENTS RESULTS OF OPERATIONS - YEAR ENDED DECEMBER 31, 2008 AND 2007

	U.S. Mortgage Insurance Operations (6)			International Operations (7)			Financial Guaranty (8)			Corporate and Other (9)			Consolidated Total
	Year Ended December 31, 2008 (Audited)
	(Dollars in thousands)
Net premiums written	$	750,627		$	18,233		$	—		$	35		$	768,895
Revenues
Premiums earned	$	772,173		$	13,942		$	—		$	44		$	786,159
Net loss from credit default swaps		—			(11,275	)					—			(11,275	)
Net investment income		115,219			12,913			—			10,245			138,377
Net realized investment (losses) gains		(47,600	)		261			—			(1,003	)		(48,342	)
Change in fair value of certain debt instruments (1)		—			—			—			123,595			123,595
Impairment of unconsolidated subsidiaries (2)		—			—			(90,868	)		—			(90,868	)
Other (loss) income		(351	)		5			—			10,487			10,141
Total revenues (expenses)		839,441			15,846			(90,868	)		143,368			907,787
Losses and expenses
Losses and loss adjustment expenses		1,835,720			63,544			—			—			1,899,264
Amortization of deferred policy acquisition costs		15,586			2,699			—			—			18,285
Other underwriting and operating expenses		123,368			39,903			—			55,312			218,583
Interest expense		139			—			—			40,868			41,007
Total losses and expenses		1,974,813			106,146			—			96,180			2,177,139
(Loss) income before equity in earnings (losses) from unconsolidated subsidiaries and income taxes		(1,135,372	)		(90,300	)		(90,868	)		47,188			(1,269,352	)
Equity in earnings (losses) from unconsolidated subsidiaries (4)		6,456			—			(57,670	)		(588	)		(51,802	)
(Loss) income from continuing operations before income taxes		(1,128,916	)		(90,300	)		(148,538	)		46,600			(1,321,154	)
Income tax (benefit) expense from continuing operations		(419,371	)		(3,264	)		(24,540	)		13,209			(433,966	)
(Loss) income from continuing operations		(709,545	)		(87,036	)		(123,998	)		33,391			(887,188	)
Loss from discontinued operations, net of taxes		—			(17,200	)		(24,120	)		—			(41,320	)
Net (loss) income	$	(709,545	)	$	(104,236	)	$	(148,118	)	$	33,391		$	(928,508	)
Loss ratio (10)		237.7	%
Expense ratio (10)		18.5	%
Combined ratio		256.2	%
	Year Ended December 31, 2007 (Audited)
	(Dollars in thousands)
Net premiums written	$	799,747		$	14,123		$	—		$	52		$	813,922
Revenues
Premiums earned	$	800,937			14,446		$	—		$	57		$	815,440
Net loss from credit default swaps		—			(14,447	)		—			—			(14,447	)
Net investment income		110,355			10,848			—			11,349			132,552
Net realized investment gains (losses)		4,587			(164	)		—			9,437			13,860
Impairment of unconsolidated subsidiaries (2)		—			—			(38,499	)		—			(38,499	)
Other income (loss)		85			(114	)		—			14,308			14,279
Total revenues (expenses)		915,964			10,569			(38,499	)		35,151			923,185
Losses and expenses
Losses and loss adjustment expenses		1,096,093			26,805			—			—			1,122,898
Amortization of deferred policy acquisition costs		84,214			3,469			—			—			87,683
Other underwriting and operating expenses		95,557			18,104			—			79,256			192,917
Interest expense		108			—			—			33,283			33,391
Total losses and expenses		1,275,972			48,378			—			112,539			1,436,889
Loss before equity in earnings from unconsolidated subsidiaries and income taxes		(360,008	)		(37,809	)		(38,499	)		(77,388	)		(513,704	)
Equity in earnings (losses) from unconsolidated subsidiaries (4)		17,119			—			(758,833	)		214			(741,500	)
Loss from continuing operations before income taxes		(342,889	)		(37,809	)		(797,332	)		(77,174	)		(1,255,204	)
Income tax benefit from continuing operations		(152,073	)		(2,529	)		(62,576	)		(29,344	)		(246,522	)
Loss from continuing operations		(190,816	)		(35,280	)		(734,756	)		(47,830	)		(1,008,682	)
Income from discontinued operations, net of taxes		—			90,270			3,086			—			93,356
Net (loss) income	$	(190,816	)	$	54,990		$	(731,670	)	$	(47,830	)	$	(915,326	)
Loss ratio (10)		136.9	%
Expense ratio (10)		22.5	%
Combined ratio		159.4	%

Page 7

THE PMI GROUP, INC. AND SUBSIDIARIES

BUSINESS SEGMENTS BALANCE SHEETS

	U.S. Mortgage Insurance Operations (6)		International Operations (7)		Financial Guaranty (8)		Corporate and Other (9)			Consolidated Total
	December 31, 2008 (Audited)
	(Dollars in thousands)
Assets
Investments:
Fixed income securities	$	1,722,432	$	139,804	$	—	$	135,230		$	1,997,466
Equity securities:
Common		5,593		—		—		—			5,593
Preferred		216,256		—		—		—			216,256
Short term investments		980		—		—		1,300			2,280
Total investments	$	1,945,261	$	139,804		—	$	136,530		$	2,221,595
Cash and cash equivalents		1,239,490		124,518		—		119,305			1,483,313
Investments in unconsolidated subsidiaries		135,082		—		—		15,295			150,377
Reinsurance recoverables		482,678		—		—		—			482,678
Deferred policy acquisition costs		32,317		2,474		—		—			34,791
Property, equipment and software, net of accumulated depreciation and amortization		54,230		948		—		76,033			131,211
Other assets (liabilities)		262,166		14,424		70,696		(26,852	)		320,434
Total assets	$	4,151,224	$	282,168	$	70,696	$	320,311		$	4,824,399
Liabilities
Reserve for losses and loss adjustment expenses	$	2,624,504	$	84,782	$	—	$	—		$	2,709,286
Unearned premiums		86,187		25,449		—		20			111,656
Debt		—		—		—		481,764			481,764
Other liabilities (assets)		190,348		78,436		—		(25,316	)		243,468
Total liabilities		2,901,039		188,667		—		456,468			3,546,174
Shareholders’ equity (deficit)		1,250,185		93,501		70,696		(136,157	)		1,278,225
Total liabilities and shareholders’ equity	$	4,151,224	$	282,168	$	70,696	$	320,311		$	4,824,399
	December 31, 2007 (Audited)
	(Dollars in thousands)
Assets
Investments:
Fixed income securities	$	1,531,606	$	265,653	$	167,915	$	52,974		$	2,018,148
Equity securities:
Common		116,005		4		—		1,242			117,251
Preferred		277,165		—		22,465		—			299,630
Short term investments		951		—		—		1,300			2,251
Total investments	$	1,925,727	$	265,657	$	190,380	$	55,516		$	2,437,280
Cash and cash equivalents		229,446		62,298		11,252		51,512			354,508
Investments in unconsolidated subsidiaries		131,225		—		163,661		14,914			309,800
Reinsurance recoverables		35,930		987		—		—			36,917
Deferred policy acquisition costs		10,474		3,921		3,910		—			18,305
Property, equipment and software, net of accumulated depreciation and amortization		75,884		2,095		187		79,142			157,308
Other assets		188,018		12,174		52,918		49,657			302,767
Assets - discontinued operations - held for sale		—		1,453,555		—		—			1,453,555
Total assets	$	2,596,704	$	1,800,687	$	422,308	$	250,741		$	5,070,440
Liabilities
Reserve for losses and loss adjustment expenses	$	1,133,080	$	41,579	$	2,650	$	—		$	1,177,309
Unearned premiums		107,200		22,983		6,709		29			136,921
Debt		—		—		50,000		446,593			496,593
Other liabilities (assets)		129,246		46,652		2,892		(515	)		178,275
Liabilities - discontinued operations - held for sale		—		568,380		—		—			568,380
Total liabilities		1,369,526		679,594		62,251		446,107			2,557,478
Shareholders’ equity (deficit)		1,227,178		1,121,093		360,057		(195,366	)		2,512,962
Total liabilities and shareholders’ equity	$	2,596,704	$	1,800,687	$	422,308	$	250,741		$	5,070,440

Page 8

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS SEGMENT ⁽⁶⁾ RESULTS OF OPERATIONS AND BALANCE SHEETS

	2008															2007
Income Statement Components - Quarter Ended	12/31/2008			9/30/2008			6/30/2008			3/31/2008			Total			12/31/2007			9/30/2007			6/30/2007			3/31/2007			Total
	(Dollars in thousands)															(Dollars in thousands)
Revenues
Premiums written:
Gross premiums written	$	243,883		$	249,423		$	251,677		$	262,870		$	1,007,853		$	258,026		$	266,545		$	236,412		$	240,430		$	1,001,413
Ceded and refunded premiums, net of assumed premiums		(68,225	)		(75,515	)		(55,614	)		(57,872	)		(257,226	)		(57,773	)		(52,147	)		(47,232	)		(44,514	)		(201,666	)
Net premiums written		175,658			173,908			196,063			204,998			750,627			200,253			214,398			189,180			195,916			799,747
Change in unearned premiums		5,261			5,887			7,572			2,826			21,546			6,001			(8,859	)		6,205			(2,157	)		1,190
Premiums earned	$	180,919		$	179,795		$	203,635		$	207,824		$	772,173		$	206,254		$	205,539		$	195,385		$	193,759		$	800,937
Net investment income		28,633			29,331			29,255			28,000			115,219			27,281			28,786			25,966			28,322			110,355
Net realized investment (losses) gains		(25,451	)		(50,800	)		(12,900	)		41,551			(47,600	)		(1,526	)		2,865			981			2,267			4,587
Other income (loss)		6			(190	)		(91	)		(76	)		(351	)		(86	)		167			17			(13	)		85
Total revenues		184,107			158,136			219,899			277,299			839,441			231,923			237,357			222,349			224,335			915,964
Losses and expenses
Losses and loss adjustment expenses		398,010			348,201			552,476			537,033			1,835,720			520,611			348,314			134,384			92,784			1,096,093
Amortization of deferred policy acquisition costs		4,129			3,387			3,819			4,251			15,586			46,213			12,809			12,610			12,582			84,214
Other underwriting and operating expenses		52,237			24,633			24,159			22,339			123,368			22,717			18,420			26,759			27,661			95,557
Interest expense		25			53			29			32			139			33			36			39			—			108
Total losses and expenses		454,401			376,274			580,483			563,655			1,974,813			589,574			379,579			173,792			133,027			1,275,972
(Loss) income before equity in earnings (losses) from unconsolidated subsidiaries and income taxes		(270,294	)		(218,138	)		(360,584	)		(286,356	)		(1,135,372	)		(357,651	)		(142,222	)		48,557			91,308			(360,008	)
Equity in earnings (losses) from unconsolidated subsidiaries		675			(85	)		2,986			2,880			6,456			3,474			4,167			4,617			4,861			17,119
(Loss) income before income taxes		(269,619	)		(218,223	)		(357,598	)		(283,476	)		(1,128,916	)		(354,177	)		(138,055	)		53,174			96,169			(342,889	)
Income tax (benefit) expense		(95,525	)		(81,108	)		(131,739	)		(110,999	)		(419,371	)		(118,160	)		(72,833	)		11,627			27,293			(152,073	)
Net (loss) income	$	(174,094	)	$	(137,115	)	$	(225,859	)	$	(172,477	)	$	(709,545	)	$	(236,017	)	$	(65,222	)	$	41,547		$	68,876		$	(190,816	)
Loss ratio (10)		220.0	%		193.7	%		271.3	%		258.4	%		237.7	%		252.4	%		169.5	%		68.8	%		47.9	%		136.9	%
Expense ratio (10)		32.1	%		16.1	%		14.3	%		13.0	%		18.5	%		34.4	%		14.6	%		20.8	%		20.5	%		22.5	%
Combined ratio		252.1	%		209.8	%		285.6	%		271.4	%		256.2	%		286.8	%		184.1	%		89.6	%		68.4	%		159.4	%
Balance Sheet Components - As of Quarter End	12/31/2008			9/30/2008			6/30/2008			3/31/2008						12/31/2007			9/30/2007			6/30/2007			3/31/2007
	(Dollars in thousands)															(Dollars in thousands)
Assets
Investments:
Fixed income securities	$	1,722,432		$	1,726,032		$	1,960,626		$	1,746,902					$	1,531,606		$	1,567,122		$	1,523,285		$	1,540,150
Equity securities:
Common		5,593			9,883			10,927			14,159						116,005			135,738			141,255			129,096
Preferred		216,256			212,703			243,459			260,646						277,165			283,051			236,403			229,948
Short term investments		980			980			977			951						951			951			947			930
Total investments	$	1,945,261		$	1,949,598		$	2,215,989		$	2,022,658					$	1,925,727		$	1,986,862		$	1,901,890		$	1,900,124
Cash and cash equivalents		1,239,490			400,086			106,317			285,074						229,446			91,460			165,114			262,327
Investments in unconsolidated subsidiaries		135,082			132,584			135,580			133,664						131,225			127,206			122,072			137,041
Reinsurance recoverables		482,678			392,701			313,549			123,864						35,930			3,782			2,554			2,669
Deferred policy acquisition costs		32,317			28,091			22,532			15,992						10,474			43,344			43,906			43,193
Property, equipment and software, net of accumulated depreciation and amortization		54,230			60,000			70,330			73,832						75,884			80,170			83,293			84,448
Other assets		262,166			298,908			264,577			242,679						188,018			186,915			139,745			124,958
Total assets	$	4,151,224		$	3,261,968		$	3,128,874		$	2,897,763					$	2,596,704		$	2,519,739		$	2,458,574		$	2,554,760
Liabilities
Reserve for losses and loss adjustment expenses	$	2,624,504		$	2,349,651		$	2,132,632		$	1,589,253					$	1,133,080		$	698,238		$	444,594		$	386,036
Unearned premiums		86,187			90,007			96,739			104,674						107,200			112,634			103,331			108,968
Other liabilities		190,348			200,593			115,973			185,738						129,246			205,749			265,268			347,720
Total liabilities		2,901,039			2,640,251			2,345,344			1,879,665						1,369,526			1,016,621			813,193			842,724
Shareholder’s equity		1,250,185			621,717			783,530			1,018,098						1,227,178			1,503,118			1,645,381			1,712,036
Total liabilities and shareholder’s equity	$	4,151,224		$	3,261,968		$	3,128,874		$	2,897,763					$	2,596,704		$	2,519,739		$	2,458,574		$	2,554,760

Page 9

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS PORTFOLIO CHARACTERISTICS (1)

	2008															2007
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			Total			12/31/2007			9/30/2007			6/30/2007			3/31/2007			Total
	(Dollars in millions)															(Dollars in millions)
New Insurance Written
Flow insurance written	$	5,725		$	6,156		$	4,364		$	5,952		$	22,197		$	8,701		$	11,091		$	10,268		$	7,524		$	37,584
Structured insurance written		24			67			184			167			442			369			3,404			1,337			3,439			8,549
Primary new insurance written	$	5,749		$	6,223		$	4,548		$	6,119		$	22,639		$	9,070		$	14,495		$	11,605		$	10,963		$	46,133
Primary new risk written	$	1,322		$	1,413		$	985		$	1,417		$	5,137		$	2,215		$	3,533		$	2,806		$	2,920		$	11,474
Pool new insurance written (11)	$	—		$	—		$	—		$	274		$	274		$	968		$	1,953		$	5,270		$	6,188		$	14,379
Pool new risk written (11)	$	—		$	—		$	—		$	4		$	4		$	14		$	41		$	122		$	178		$	355
Product mix as a % of primary new insurance written:
High LTV (above 97% LTV’s)		0	%		0	%		4	%		15	%		5	%		21	%		31	%		35	%		36	%		32	%
95.01% to 97% LTV’s		3	%		4	%		5	%		2	%		3	%		2	%		2	%		3	%		3	%		3	%
90.01% to 95% LTV’s		31	%		26	%		22	%		23	%		26	%		26	%		26	%		21	%		22	%		24	%
85.01% to 90% LTV’s		52	%		55	%		49	%		44	%		50	%		40	%		30	%		31	%		27	%		31	%
85% and below		14	%		15	%		20	%		16	%		16	%		11	%		11	%		10	%		12	%		10	%
Less than A quality loans		0	%		0	%		1	%		4	%		1	%		8	%		12	%		10	%		9	%		10	%
Alt-A loans		0	%		1	%		8	%		13	%		5	%		15	%		22	%		32	%		38	%		27	%
Interest only loans		2	%		5	%		6	%		8	%		5	%		12	%		18	%		24	%		26	%		20	%
Payment option ARMS		0	%		0	%		0	%		0	%		0	%		1	%		2	%		3	%		3	%		3	%
ARMs		1	%		1	%		2	%		2	%		1	%		3	%		8	%		8	%		16	%		9	%
Monthlies		93	%		92	%		97	%		98	%		95	%		98	%		86	%		98	%		95	%		94	%
Refinances		25	%		22	%		41	%		45	%		33	%		36	%		31	%		38	%		47	%		37	%
Structured transactions		0	%		1	%		4	%		3	%		2	%		4	%		23	%		12	%		31	%		19	%

Page 10

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS PORTFOLIO CHARACTERISTICS (2)

	2008												2007
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007			9/30/2007			6/30/2007			3/31/2007
	(Dollars in millions, except loan size)
Primary Insurance and Risk in Force
Primary insurance in force
Flow	$	106,147		$	104,336		$	103,626		$	103,860		$	102,410		$	98,105		$	91,864		$	87,184
Structured transactions		18,118			18,806			19,525			20,403			21,213			21,864			19,803			19,701
Total	$	124,265		$	123,142		$	123,151		$	124,263		$	123,623		$	119,969		$	111,667		$	106,885
Primary risk in force
Flow	$	26,329		$	25,981		$	25,983		$	26,156		$	25,852		$	24,754		$	23,075		$	21,837
Structured transactions		4,276			4,458			4,650			4,896			5,115			5,324			5,016			5,138
Total	$	30,605		$	30,439		$	30,633		$	31,052		$	30,967		$	30,078		$	28,091		$	26,975
Pool risk in force (11)	$	2,722		$	2,762		$	2,812		$	3,443		$	3,464		$	3,476		$	3,461		$	3,373
Primary risk in force - credit score distribution
Flow
620 or above		94.1	%		93.7	%		93.4	%		93.2	%		93.1	%		93.1	%		93.6	%		93.8	%
619-575		4.6	%		4.9	%		5.1	%		5.3	%		5.3	%		5.3	%		5.0	%		4.9	%
574 or below		1.3	%		1.4	%		1.5	%		1.5	%		1.6	%		1.6	%		1.4	%		1.3	%
Structured transactions
620 or above		86.2	%		86.2	%		86.2	%		86.2	%		86.1	%		86.1	%		85.4	%		85.3	%
619-575		8.7	%		8.7	%		8.7	%		8.7	%		8.8	%		8.8	%		9.2	%		9.2	%
574 or below		5.1	%		5.1	%		5.1	%		5.1	%		5.1	%		5.1	%		5.4	%		5.5	%
Total
620 or above		93.0	%		92.6	%		92.4	%		92.1	%		91.9	%		91.9	%		92.1	%		92.2	%
619-575		5.2	%		5.5	%		5.6	%		5.8	%		5.9	%		5.9	%		5.8	%		5.7	%
574 or below		1.8	%		1.9	%		2.0	%		2.1	%		2.2	%		2.2	%		2.1	%		2.1	%
Primary average loan size (in thousands)
Flow	$	160.3		$	158.3		$	157.0		$	155.6		$	153.7		$	150.6		$	146.6		$	142.8
Structured transactions	$	159.4		$	159.9		$	160.3		$	160.8		$	161.7		$	162.0		$	159.6		$	159.2
Total	$	160.2		$	158.6		$	157.5		$	156.4		$	155.0		$	152.6		$	148.7		$	145.5
Loss severity (12) - primary (quarterly)
Flow		87.4	%		100.7	%		98.8	%		95.7	%		95.5	%		90.6	%		87.9	%		88.5	%
Structured transactions		91.9	%		98.9	%		98.2	%		98.9	%		94.6	%		92.0	%		92.5	%		90.3	%
Total		89.0	%		100.0	%		98.6	%		96.9	%		95.2	%		91.1	%		89.3	%		89.0	%
Persistency (13)
Primary persistency rate		82.2	%		81.0	%		79.6	%		77.6	%		75.5	%		73.3	%		71.7	%		70.7	%
Risk-to-capital ratio (14)		18.5 to 1			15.8 to 1			12.6 to 1			12.0 to 1			10.8 to 1			9.6 to 1			8.6 to 1			8.3 to 1

Page 11

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS PORTFOLIO CHARACTERISTICS (3)

					12/31/2008					9/30/2008					12/31/2007
Policy Year As a Percentage of Primary Risk in Force (RIF)					Primary Risk in Force			Percent of Total		Primary Risk in Force			Percent of Total		Primary Risk in Force			Percent of Total
					(In millions)					(In millions)					(In millions)
Prior to 1999					$	336		1.1	%	$	359		1.2	%	$	436		1.4	%
1999						273		0.9	%		279		0.9	%		312		1.0	%
2000						122		0.4	%		126		0.4	%		144		0.5	%
2001						438		1.4	%		457		1.5	%		539		1.7	%
2002						956		3.1	%		998		3.3	%		1,173		3.8	%
2003						2,577		8.4	%		2,691		8.8	%		3,174		10.2	%
2004						2,755		9.0	%		2,862		9.4	%		3,344		10.8	%
2005						4,029		13.2	%		4,189		13.8	%		4,829		15.6	%
2006						5,175		16.9	%		5,384		17.7	%		6,191		20.0	%
2007						9,068		29.6	%		9,435		31.0	%		10,825		35.0	%
2008						4,876		16.0	%		3,659		12.0	%		—		0.0	%
Total					$	30,605				$	30,439				$	30,967
					12/31/2008					9/30/2008					12/31/2007
					% of Primary RIF			Primary Default Rate		% of Primary RIF			Primary Default Rate		% of Primary RIF			Primary Default Rate
Top 10 States as a Percentage of Primary Risk in Force, (Ranking based on 12/31/08 RIF)
Florida						10.3	%	27.8	%		10.5	%	22.6	%		10.8	%	10.6	%
California						8.0	%	24.7	%		8.2	%	21.0	%		8.1	%	10.9	%
Texas						7.3	%	9.4	%		7.2	%	8.0	%		7.2	%	6.0	%
Illinois						5.2	%	14.8	%		5.1	%	12.6	%		5.0	%	8.2	%
Georgia						4.7	%	14.6	%		4.7	%	12.3	%		4.7	%	9.5	%
New York						3.9	%	11.3	%		3.8	%	9.6	%		3.6	%	6.8	%
Ohio						3.8	%	13.5	%		3.8	%	12.6	%		3.8	%	10.8	%
Pennsylvania						3.3	%	10.8	%		3.3	%	9.7	%		3.3	%	7.5	%
New Jersey						3.2	%	14.2	%		3.1	%	12.0	%		3.0	%	7.5	%
Washington						3.1	%	8.1	%		3.1	%	6.4	%		3.1	%	3.6	%
	2008									2007
	12/31/2008		9/30/2008		6/30/2008			3/31/2008		12/31/2007			9/30/2007		6/30/2007			3/31/2007
As a Percentage of Primary Risk in Force - loan to value ratios
High LTV (above 97% LTV’s)	21.5	%	22.6	%		24.0	%	24.4	%		24.6	%	23.9	%		22.4	%	20.3	%
95.01% to 97% LTV’s	4.1	%	4.0	%		3.9	%	3.8	%		3.8	%	4.0	%		4.3	%	4.5	%
90.01% to 95% LTV’s	29.9	%	29.4	%		29.3	%	29.4	%		29.5	%	29.3	%		29.4	%	30.1	%
85.01% to 90% LTV’s	37.5	%	36.9	%		35.7	%	35.3	%		35.0	%	34.9	%		35.7	%	36.5	%
85% and below	7.0	%	7.1	%		7.1	%	7.1	%		7.1	%	7.9	%		8.2	%	8.6	%
As a Percentage of Primary Risk in Force:
Less-than-A quality (FICO scores below 620)	7.1	%	7.4	%		7.7	%	7.9	%		8.1	%	8.1	%		7.9	%	7.8	%
Less-than-A quality (FICO scores below 575) (A)	1.8	%	1.9	%		2.0	%	2.1	%		2.2	%	2.2	%		2.1	%	2.1	%
Alt-A Loans:
With FICO scores of 660 and above	16.3	%	17.4	%		19.0	%	19.4	%		19.6	%	20.0	%		19.3	%	18.3	%
With FICO scores below 660 and above 619	2.5	%	2.6	%		2.9	%	3.0	%		3.2	%	3.4	%		3.7	%	3.8	%
Total Alt-A Loans	18.8	%	20.0	%		21.9	%	22.4	%		22.8	%	23.4	%		23.0	%	22.1	%
ARMs (B)	10.3	%	11.0	%		11.6	%	12.1	%		12.8	%	14.1	%		16.0	%	17.7	%
Interest Only (C)	11.8	%	12.5	%		13.8	%	14.0	%		14.2	%	14.2	%		13.6	%	12.1	%
Payment Option ARMs	3.4	%	3.6	%		3.7	%	3.7	%		3.8	%	3.9	%		4.2	%	4.3	%

(A) Less-than-A quality loans with FICO scores below 575 is a subset of PMI’s less-than-A quality loan portfolio.

(B) Approximately 1.0% and 0.6% of RIF are subject to initial payment adjustment in 2009 and 2010, respectively.

(C) Approximately 97.8% and 95.4% of interest only loans written in 2007 and 2008, respectively, have an initial deferral period of 5 years or greater.

Page 12

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS DEFAULT INFORMATION

	2008															2007
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			Total (15)			12/31/2007			9/30/2007			6/30/2007			3/31/2007			Total (15)
	(Dollars in millions, except claim size)															(Dollars in millions, except claim size)
Primary loans, defaults and default rates
Primary policies in force		775,841			776,544			781,867			794,323			775,841			797,419			786,301			750,835			734,431			797,419
Primary loans in default		109,580			93,670			80,895			69,718			109,580			63,197			50,742			42,349			39,206			63,197
Primary default rate		14.12	%		12.06	%		10.35	%		8.78	%		14.12	%		7.93	%		6.45	%		5.64	%		5.34	%		7.93	%
Flow only default rate		13.00	%		10.93	%		9.26	%		7.57	%		13.00	%		6.74	%		5.38	%		4.70	%		4.54	%		6.74	%
Structured transactions only default rate		20.70	%		18.41	%		16.25	%		15.14	%		20.70	%		13.92	%		11.65	%		10.37	%		9.29	%		13.92	%
Pool default rate		15.54	%		12.74	%		10.76	%		9.20	%		15.54	%		7.76	%		6.18	%		5.17	%		4.82	%		7.76	%
Primary default rates by loan type
Alt-A loans		30.56	%		25.79	%		21.67	%		17.47	%		30.56	%		13.86	%		9.92	%		7.32	%		6.06	%		13.86	%
Less than A quality loans		30.81	%		27.25	%		23.27	%		20.74	%		30.81	%		20.21	%		17.27	%		16.83	%		16.94	%		20.21	%
Above 97s		18.28	%		15.23	%		12.39	%		10.18	%		18.28	%		9.11	%		6.98	%		6.02	%		5.74	%		9.11	%
ARMs (excluding 2/28 Hybrid ARMs)		32.00	%		27.40	%		23.41	%		19.03	%		32.00	%		15.48	%		11.74	%		9.72	%		8.43	%		15.48	%
2/28 Hybrid ARMs		48.46	%		47.38	%		45.38	%		42.95	%		48.46	%		38.62	%		31.00	%		22.06	%		18.08	%		38.62	%
Payment option ARMs		38.87	%		32.60	%		26.72	%		19.59	%		38.87	%		14.46	%		9.28	%		6.32	%		4.34	%		14.46	%
Interest Only		28.62	%		23.53	%		19.25	%		15.04	%		28.62	%		10.98	%		7.11	%		5.02	%		4.15	%		10.98	%
Claims paid
Primary claims paid - flow	$	143.7		$	130.1		$	117.2		$	93.0		$	484.0		$	71.0		$	57.7		$	46.7		$	46.9		$	222.3
Primary claims paid - structured transactions		79.7			76.9			71.8			59.9			288.3			34.7			29.4			21.6			18.4			104.1
Supplemental and other (16)		(7.4	)		(24.6	)		0.9			1.8			(29.3	)		3.5			0.6			(0.5	)		(0.4	)		3.2
Total primary claims paid		216.0			182.4			189.9			154.7			743.0			109.2			87.7			67.8			64.9			329.6
Total pool and other		8.5			17.7			2.8			7.9			36.9			5.3			4.9			4.5			4.4			19.1
Total claims paid		224.5			200.1			192.7			162.6			779.9			114.5			92.6			72.3			69.3			348.7
Loss adjustment expenses		11.6			10.2			6.1			6.2			34.1			3.4			3.3			3.4			3.5			13.6
Total claims paid including loss adjustment expenses	$	236.1		$	210.3		$	198.8		$	168.8		$	814.0		$	117.9		$	95.9		$	75.7		$	72.8		$	362.3
Number of primary claims paid		5,044			4,371			4,329			3,722			17,466			2,889			2,675			2,336			2,362			10,262
Average primary claim size (in thousands) (16)	$	44.4		$	47.6		$	43.9		$	41.6		$	44.5		$	37.8		$	32.8		$	29.0		$	27.5		$	32.1
Captive reinsurance arrangements
Percentage of flow NIW subject to captive reinsurance arrangements		23.2	%		19.6	%		50.8	%		68.4	%		39.8	%		74.3	%		64.2	%		60.9	%		49.2	%		62.7	%
Percentage of primary NIW subject to captive reinsurance arrangements		23.1	%		19.4	%		48.7	%		66.5	%		39.0	%		71.3	%		49.1	%		53.9	%		34.0	%		51.1	%
Percentage of primary IIF subject to captive reinsurance arrangements		49.0	%		50.0	%		53.0	%		53.0	%		51.2	%		52.2	%		50.2	%		50.3	%		51.0	%		52.2	%
Percentage of primary RIF subject to captive reinsurance arrangements		49.5	%		50.4	%		53.1	%		53.1	%		51.5	%		52.3	%		50.2	%		50.2	%		50.8	%		52.3	%

Page 13

THE PMI GROUP, INC. AND SUBSIDIARIES

U.S. MORTGAGE INSURANCE OPERATIONS ANALYSIS OF LOSS RESERVES

Loss Reserve Analysis	2008												2007
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007			9/30/2007			6/30/2007			3/31/2007
	(Dollars in millions)												(Dollars in millions)
Beginning reserves for losses and LAE,	$	2,349.7		$	2,132.6		$	1,589.3		$	1,133.1		$	698.2		$	444.6		$	386.0		$	366.2
Reinsurance recoverables		(392.7	)		(313.5	)		(123.9	)		(35.9	)		(3.8	)		(2.6	)		(2.7	)		(2.9	)
Net balance at beginning of the period		1,957.0			1,819.1			1,465.4			1,097.2			694.4			442.0			383.3			363.3
Loss and LAE incurred (principally with respect to defaults occuring in):
Current year		473.8			393.5			480.4			363.2			474.8			238.1			101.4			80.1
Prior years		(45.8	)		(45.3	)		72.1			173.8			45.8			110.2			33.0			12.7
Total incurred		428.0			348.2			552.5			537.0			520.6			348.3			134.4			92.8
Loss and LAE payments (principally with respect to defaults occuring in):
Current year		(72.7	)		(22.7	)		(5.4	)		(0.1	)		(31.3	)		(11.3	)		(0.9	)		(0.1	)
Prior years		(170.5	)		(187.6	)		(193.4	)		(168.7	)		(86.5	)		(84.6	)		(74.8	)		(72.7	)
Total payments		(243.2	)		(210.3	)		(198.8	)		(168.8	)		(117.8	)		(95.9	)		(75.7	)		(72.8	)
Net ending balance		2,141.8			1,957.0			1,819.1			1,465.4			1,097.2			694.4			442.0			383.3
Reinsurance recoverables (A)		482.7			392.7			313.5			123.9			35.9			3.8			2.6			2.7
Ending reserves for losses and LAE	$	2,624.5		$	2,349.7		$	2,132.6		$	1,589.3		$	1,133.1		$	698.2		$	444.6		$	386.0
Loss Reserves by Book Year				12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007			12/31/2006			12/31/2005
				(Dollars in thousands)												(Dollars in thousands)
2002 and prior				$	137,136		$	131,268		$	125,014		$	134,477		$	117,987		$	103,053		$	149,157
2003					118,672			111,493			101,505			95,622			87,713			65,107			80,443
2004					166,420			157,722			152,214			133,461			119,017			76,606			80,865
2005					406,224			382,756			371,433			298,904			238,077			83,339			35,071
2006					774,871			687,187			633,559			462,662			345,918			38,077			—
2007					928,065			821,026			725,815			461,633			224,368			—			—
2008					93,116			58,199			23,092			2,494			—			—			—
Total Loss Reserves				$	2,624,504		$	2,349,651		$	2,132,632		$	1,589,253		$	1,133,080		$	366,182		$	345,536

	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
	Loans in Default	Reserve for Losses and LAE		Loans in Default	Reserve for Losses and LAE		Loans in Default	Reserve for Losses and LAE		Loans in Default	Reserve for Losses and LAE		Loans in Default	Reserve for Losses and LAE
	(Dollars in millions)
Primary insurance	109,580	$	2,340.0	93,670	$	2,195.3	80,895	$	2,037.4	69,718	$	1,498.9	63,197	$	1,054.3
Pool insurance (11)	50,770		261.6	42,741		154.4	37,640		95.2	33,536		90.4	29,143		78.8
Surety (B)	—		22.9	—		—	—		—	—		—	—		—
Total	160,350	$	2,624.5	136,411	$	2,349.7	118,535	$	2,132.6	103,254	$	1,589.3	92,340	$	1,133.1

(A) Reinsurance recoverables includes captive reinsurance agreements and other reinsurance recoverables.

(B) Reserve for losses and LAE relates to loss reserves on PMI Guaranty’s surety business with FGIC which was commutated and merged into the Company’s U.S. Mortgage Insurance Operations in the fourth quarter of 2008.

Page 14

THE PMI GROUP, INC. AND SUBSIDIARIES

CMG MORTGAGE INSURANCE COMPANY STATISTICAL INFORMATION

	2008															2007
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			Total (15)			12/31/2007			9/30/2007			6/30/2007			3/31/2007			Total (15)
	(Dollars in millions, except claims paid and claim size)															(Dollars in millions, except claims paid and claim size)
Primary new insurance written	$	1,148		$	1,466		$	1,877		$	1,353		$	5,844		$	1,389		$	1,621		$	1,566		$	1,053		$	5,629
Primary insurance in force	$	22,015		$	21,446		$	20,627		$	19,530		$	22,015		$	18,942		$	18,265		$	17,415		$	16,670		$	18,942
Primary risk in force	$	5,465		$	5,334		$	5,137		$	4,871		$	5,465		$	4,721		$	4,532		$	4,292		$	4,085		$	4,721
Policies in force		140,128			137,979			134,451			129,032			140,128			126,342			123,164			118,933			115,224			126,342
Primary loans in default		3,565			2,795			2,157			1,832			3,565			1,796			1,516			1,259			1,130			1,796
Primary default rate		2.54	%		2.03	%		1.60	%		1.42	%		2.54	%		1.42	%		1.23	%		1.06	%		0.98	%		1.42	%
Persistency		85.4	%		84.1	%		82.6	%		81.6	%		85.4	%		81.6	%		80.7	%		79.2	%		78.5	%		81.6	%
Primary claims paid (in thousands)	$	8,432		$	5,929		$	6,051		$	4,033		$	24,445		$	3,726		$	3,235		$	2,392		$	2,131		$	11,484
Number of primary claims paid		232			169			173			118			692			112			116			83			75			386
Average primary claim size (in thousands)	$	36.3		$	35.1		$	35.0		$	34.2		$	35.3		$	33.3		$	27.9		$	28.8		$	28.4		$	29.8

Page 15

THE PMI GROUP, INC. AND SUBSIDIARIES

INTERNATIONAL OPERATIONS SEGMENT ⁽⁷⁾ RESULTS OF OPERATIONS AND BALANCE SHEETS

	2008															2007
Income Statement Components - Quarter Ended	12/31/2008			9/30/2008			6/30/2008			3/31/2008			Total			12/31/2007			9/30/2007			6/30/2007			3/31/2007			Total
	(U.S. dollars in thousands)															(U.S. dollars in thousands)
Net premiums written	$	1,875		$	2,577		$	6,093		$	7,688		$	18,233		$	2,802		$	4,419		$	3,497		$	3,405		$	14,123
Revenues
Premiums earned	$	3,192		$	3,776		$	3,769		$	3,205		$	13,942		$	3,704		$	3,644		$	3,519		$	3,579		$	14,446
Net (losses) gains from credit default swaps		(11,714	)		(9,911	)		9,550			800			(11,275	)		(9,483	)		(8,371	)		1,579			1,828			(14,447	)
Net investment income		509			3,875			3,762			4,767			12,913			2,854			2,866			2,719			2,409			10,848
Net realized investment (losses) gains		(896	)		1,868			(480	)		(231	)		261			8			(267	)		(16	)		111			(164	)
Other (loss) income		(23	)		(23	)		23			28			5			(97	)		91			(9	)		(99	)		(114	)
Total (expenses) revenues		(8,932	)		(415	)		16,624			8,569			15,846			(3,014	)		(2,037	)		7,792			7,828			10,569
Losses and expenses
Losses and loss adjustment expenses		6,447			34,488			3,589			19,020			63,544			22,111			2,719			1,611			364			26,805
Amortization of deferred policy acquisition costs		383			1,568			403			345			2,699			2,617			341			284			227			3,469
Other underwriting and operating expenses (3)		12,216			13,048			7,658			6,981			39,903			5,897			5,217			4,110			2,880			18,104
Total losses and expenses		19,046			49,104			11,650			26,346			106,146			30,625			8,277			6,005			3,471			48,378
(Loss) income from continuing operations before income taxes		(27,978	)		(49,519	)		4,974			(17,777	)		(90,300	)		(33,639	)		(10,314	)		1,787			4,357			(37,809	)
Income tax expense (benefits) from continuing operations		2,242			(3,510	)		340			(2,336	)		(3,264	)		(2,856	)		(1,567	)		446			1,448			(2,529	)
(Loss) income from continuing operations		(30,220	)		(46,009	)		4,634			(15,441	)		(87,036	)		(30,783	)		(8,747	)		1,341			2,909			(35,280	)
Income (loss) from discontinued operations, net of taxes		1,914			(51	)		26,469			33,217			61,549			20,671			22,626			26,756			20,217			90,270
Gain (loss) on sale from discontinued operations, net of taxes		1,741			(80,490	)		—			—			(78,749	)		—			—			—			—			—
					—
Net (loss) income	$	(26,565	)	$	(126,550	)	$	31,103		$	17,776		$	(104,236	)	$	(10,112	)	$	13,879		$	28,097		$	23,126		$	54,990

Loss ratio, expense ratio and combined ratio for the International Operations segement are not meaningful due to the sale of PMI Australia and PMI Asia, which were classified as discontinued operations.

Balance Sheet Components - As of Quarter End	12/31/2008		9/30/2008		6/30/2008		3/31/2008		12/31/2007		9/30/2007		6/30/2007		3/31/2007
	(U.S. dollars in thousands)								(U.S. dollars in thousands)
Assets
Investments:
Fixed income and equity securities	$	139,804	$	158,171	$	285,814	$	288,047	$	265,657	$	263,807	$	197,165	$	198,445
Cash and cash equivalents		124,518		164,276		64,566		61,732		62,298		63,836		106,853		23,662
Reinsurance recoverables		—		953		1,066		1,068		987		965		916		904
Deferred policy acquisition costs		2,474		2,945		4,965		5,006		3,921		5,346		4,366		3,821
Property, equipment and software, net of accumulated depreciation and amortization		948		1,709		1,901		2,065		2,095		2,100		1,616		1,344
Other assets		14,424		18,596		15,815		16,837		12,174		11,457		9,585		14,809
Assets - discontinued operations - held for sale		—		1,324,795		1,618,497		1,522,347		1,453,555		1,437,828		1,353,067		1,261,338
Total assets	$	282,168	$	1,671,445	$	1,992,624	$	1,897,102	$	1,800,687	$	1,785,339	$	1,673,568	$	1,504,323
Liabilities
Reserve for losses and loss adjustment expenses	$	84,782	$	90,856	$	62,664	$	60,736	$	41,579	$	20,634	$	18,083	$	17,587
Unearned premiums		25,449		27,296		31,660		29,378		22,983		23,347		21,390		21,117
Other liabilities		78,436		63,124		48,915		52,694		46,652		39,436		25,304		26,793
Liabilities - discontinued operations - held for sale		—		543,830		615,441		576,681		568,380		548,164		521,888		484,030
Total liabilities		188,667		725,106		758,680		719,489		679,594		631,581		586,665		549,527
Shareholder’s equity		93,501		946,339		1,233,944		1,177,613		1,121,093		1,153,758		1,086,903		954,796
Total liabilities and shareholder’s equity	$	282,168	$	1,671,445	$	1,992,624	$	1,897,102	$	1,800,687	$	1,785,339	$	1,673,568	$	1,504,323

Page 16

THE PMI GROUP, INC. AND SUBSIDIARIES

PMI EUROPE QUARTERLY FINANCIAL INFORMATION

	2008															2007
Income Statement Components - Quarter Ended	12/31/2008			9/30/2008			6/30/2008			3/31/2008			Total			12/31/2007			9/30/2007			6/30/2007			3/31/2007			Total
	(U.S. dollars in thousands, unless otherwise noted)															(U.S. dollars in thousands, unless otherwise noted)
Net premiums written	$	1,875		$	2,577		$	6,093		$	5,368		$	15,913		$	2,802		$	4,420		$	3,497		$	3,404		$	14,123
Revenues
Premiums earned	$	3,051		$	3,598		$	3,660		$	3,156		$	13,465		$	3,704		$	3,644		$	3,519		$	3,579		$	14,446
Net (losses) gains from credit default swaps		(11,714	)		(9,911	)		9,550			800			(11,275	)		(9,483	)		(8,371	)		1,579			1,828			(14,447	)
Net investment income		282			3,221			2,971			3,972			10,446			1,919			2,080			2,225			2,408			8,632
Net realized investment (losses) gains		(4,377	)		874			(480	)		(231	)		(4,214	)		6			(267	)		(15	)		112			(164	)
Other loss		—			—			—			—			—			—			(8	)		(26	)		(100	)		(134	)
Total (expenses) revenues		(12,758	)		(2,218	)		15,701			7,697			8,422			(3,854	)		(2,922	)		7,282			7,827			8,333
								—
Losses and expenses
Losses and loss adjustment expenses		6,288			34,386			3,589			18,975			63,238			22,111			2,719			1,611			364			26,805
Amortization of deferred policy acquisition costs		311			1,565			401			345			2,622			2,617			341			284			227			3,469
Other underwriting and operating expenses (3)		6,069			9,813			5,587			4,633			26,102			4,283			3,880			3,108			2,769			14,040
Total losses and expenses		12,668			45,764			9,577			23,953			91,962			29,011			6,940			5,003			3,360			44,314
(Loss) income before income taxes		(25,426	)		(47,982	)		6,124			(16,256	)		(83,540	)		(32,865	)		(9,862	)		2,279			4,467			(35,981	)
Income tax expense (benefit)		2,255			(3,510	)		340			(2,336	)		(3,251	)		(3,281	)		(1,417	)		624			1,488			(2,586	)
Net (loss) income	$	(27,681	)	$	(44,472	)	$	5,784		$	(13,920	)	$	(80,289	)	$	(29,584	)	$	(8,445	)	$	1,655		$	2,979		$	(33,395	)
Net (loss) income (Euros in thousands)	€	(20,011	)	€	(29,410	)	€	3,704		€	(8,857	)	€	(54,574	)	€	(21,715	)	€	(6,144	)	€	1,227		€	2,272		€	(24,360	)
Loss ratio, expense ratio and combined ratio for PMI Europe are not meaningful.
Balance Sheet Components - As of Quarter End	12/31/2008			9/30/2008			6/30/2008			3/31/2008						12/31/2007			9/30/2007			6/30/2007			3/31/2007
	(U.S. dollars in thousands)															(U.S. dollars in thousands)
Assets
Investments:
Fixed income securities	$	136,856		$	145,746		$	220,099		$	222,364					$	200,825		$	203,992		$	197,165		$	198,445
Cash and cash equivalents		107,420			109,440			58,256			53,765						53,335			47,715			36,316			23,662
Reinsurance recoverables		—			954			1,066			1,068						987			965			916			904
Deferred policy acquisition costs		2,228			2,580			4,581			4,623						3,921			5,346			4,366			3,821
Property, equipment and software, net of accumulated depreciation and amortization		948			1,165			1,269			1,372						1,323			1,317			1,293			1,344
Other assets		14,332			18,279			15,287			15,837						11,780			10,094			9,327			14,809
Total assets	$	261,784		$	278,164		$	300,558		$	299,029					$	272,171		$	269,429		$	249,383		$	242,985
Liabilities
Reserve for losses and loss adjustment expenses	$	84,503		$	90,715		$	62,620		$	60,692					$	41,579		$	20,634		$	18,083		$	17,587
Unearned premiums		23,948			25,417			29,521			27,140						22,983			23,347			21,390			21,117
Other liabilities		76,814			61,269			47,284			50,432						45,534			36,772			24,154			26,697
Total liabilities		185,265			177,401			139,425			138,264						110,096			80,753			63,627			65,401
Shareholder’s equity		76,519			100,763			161,133			160,765						162,075			188,676			185,756			177,584
Total liabilities and shareholder’s equity	$	261,784		$	278,164		$	300,558		$	299,029					$	272,171		$	269,429		$	249,383		$	242,985

Page 17

THE PMI GROUP, INC. AND SUBSIDIARIES

PMI EUROPE STATISTICAL INFORMATION

	2008										2007
	12/31/2008		9/30/2008		6/30//2008		3/31/2008		Total (15)		12/31/2007		9/30/2007		6/30/2007		3/31/2007		Total (15)
	(U.S. dollars in millions, except claims paid)										(U.S. dollars in millions, except claims paid)
New insurance written	$	172	$	90	$	129	$	95	$	486	$	236	$	132	$	141	$	136	$	645
New credit default swaps written	$	—	$	—	$	—	$	—	$	—	$	12,067	$	1,919	$	—	$	—	$	13,986
New reinsurance written	$	—	$	—	$	3,627	$	1,934	$	5,561	$	617	$	1,402	$	1,778	$	504	$	4,301
Insurance in force	$	46,290	$	55,143	$	62,422	$	63,103	$	46,290	$	62,929	$	51,707	$	48,120	$	48,121	$	62,929
Risk in force	$	7,367	$	7,972	$	9,182	$	9,628	$	7,367	$	9,420	$	5,711	$	3,813	$	3,824	$	9,420
Claims paid including credit default swaps (in thousands)	$	11,988	$	2,461	$	3,593	$	3,562	$	21,604	$	2,898	$	3,207	$	2,577	$	1,547	$	10,229

Page 18

THE PMI GROUP, INC. AND SUBSIDIARIES

FINANCIAL GUARANTY SEGMENT ⁽⁸⁾ RESULTS OF OPERATIONS AND BALANCE SHEETS

	2008															2007
Income Statement Components - Quarter Ended	12/31/2008			9/30/2008			6/30/2008			3/31/2008			Total			12/31/2007			9/30/2007			6/30/2007		3/31/2007		Total
	(Dollars in thousands)															(Dollars in thousands)
Net premiums written	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—	$	—
Revenues
Premiums earned	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—	$	—
Net investment income		—			—			—			—			—			—			—			—		—		—
Net realized investment gains		—			—			—			—			—			—			—			—		—		—
Impairment of unconsolidated subsidiaries (2)		—			(2,887	)		—			(87,981	)		(90,868	)		(38,499	)		—			—		—		(38,499	)
Total (expneses) revenues		—			(2,887	)		—			(87,981	)		(90,868	)		(38,499	)		—			—		—		(38,499	)
Losses and expenses																											—
Losses and loss adjustment expenses		—			—			—			—			—			—			—			—		—		—
Amortization of deferred policy acquisition costs		—			—			—			—			—			—			—			—		—		—
Other underwriting and operating expenses		—			—			—			—			—			—			—			—		—		—
Total losses and expenses		—			—			—			—			—			—			—			—		—		—
Loss before equity in (losses) earnings from unconsolidated subsidiaries and income taxes		—			(2,887	)		—			(87,981	)		(90,868	)		(38,499	)		—			—		—		(38,499	)
																											0
Equity in (losses) earnings from unconsolidated subsidiaries		(6,453	)		9,340			(24,321	)		(36,236	)		(57,670	)		(794,637	)		(26,741	)		30,842		31,703		(758,833	)
(Loss) income from continuing operations before income taxes		(6,453	)		6,453			(24,321	)		(124,217	)		(148,538	)		(833,136	)		(26,741	)		30,842		31,703		(797,332	)
Income tax (benefit) expense from continuing operations		(23,296	)		—			—			(1,244	)		(24,540	)		(67,767	)		(1,113	)		3,264		3,040		(62,576	)
(Loss) income from continuing operations	$	16,843		$	6,453		$	(24,321	)	$	(122,973	)	$	(123,998	)	$	(765,369	)	$	(25,628	)	$	27,578	$	28,663	$	(734,756	)
(Loss) income from discontinued operations, net of taxes		(1,507	)		437			(21,785	)		(1,265	)		(24,120	)		(787	)		1,236			1,436		1,201		3,086
Net (loss) income	$	15,336		$	6,890		$	(46,106	)	$	(124,238	)	$	(148,118	)	$	(766,156	)	$	(24,392	)	$	29,014	$	29,864	$	(731,670	)
Balance Sheet Components - As of Quarter End	12/31/2008			9/30/2008			6/30/2008			3/31/2008						12/31/2007			9/30/2007			6/30/2007		3/31/2007
	(Dollars in thousands)															(Dollars in thousands)
Assets
Investments:
Fixed income securities	$	—		$	617		$	117,607		$	163,534					$	167,915		$	167,276		$	165,422	$	133,461
Equity securities: preferred		—			—			20,097			21,102						22,465			26,880			25,131		24,459
Total investments	$	—		$	617		$	137,704		$	184,636					$	190,380		$	194,156		$	190,553	$	157,920
Cash and cash equivalents		—			30,220			29,276			7,419						11,252			11,610			15,414		56,260
Investments in unconsolidated subsidiaries		—			6,453			—			25,998						163,661			984,417			996,431		977,523
Deferred policy acquisition costs		—			—			—			3,600						3,910			3,902			3,312		2,182
Property, equipment and software, net of accumulated depreciation and amortization		—			—			162			174						187			131			132		133
Other assets		70,696			60,414			67,520			7,323						52,918			3,838			4,282		5,282
Total assets	$	70,696		$	97,704		$	234,662		$	229,150					$	422,308		$	1,198,054		$	1,210,124	$	1,199,300
Liabilities
Reserve for losses and loss adjustment expenses	$	—		$	22,900		$	7,241		$	(878	)				$	2,650		$	—		$	—	$	—
Unearned premiums		—			—			820			6,331						6,709			6,748			6,984		6,123
Long-term debt		—			—			50,000			50,000						50,000			50,000			50,000		50,000
Other (assets) liabilities		—			(2,000	)		2,897			(45,082	)					2,892			37,766			40,817		45,745
Total liabilities		—			20,900			60,958			10,371						62,251			94,514			97,801		101,868
Shareholder’s equity		70,696			76,804			173,704			218,779						360,057			1,103,540			1,112,323		1,097,432
Total liabilities and shareholder’s equity	$	70,696		$	97,704		$	234,662		$	229,150					$	422,308		$	1,198,054		$	1,210,124	$	1,199,300

Page 19

THE PMI GROUP, INC. AND SUBSIDIARIES

CORPORATE AND OTHER SEGMENT ⁽⁹⁾ RESULTS OF OPERATIONS AND BALANCE SHEETS

	2008															2007
Income Statement Components - Quarter Ended	12/31/2008			9/30/2008			6/30/2008			3/31/2008			Total			12/31/2007			9/30/2007			6/30/2007			3/31/2007			Total
	(Dollars in thousands)															(Dollars in thousands)
Net premiums written	$	10		$	12		$	5		$	8		$	35		$	19		$	14		$	7		$	12		$	52
Revenues
Premiums earned	$	11		$	10		$	11		$	12		$	44		$	10		$	18		$	16		$	13		$	57
Net investment income		2,410			3,136			2,757			1,942			10,245			2,131			2,666			2,989			3,563			11,349
Net realized investment (losses) gains		(1	)		(988	)		(3	)		(11	)		(1,003	)		12,669			(1,886	)		(620	)		(726	)		9,437
Change in fair value of certain debt instruments (1)		11,647			66,283			16,957			28,708			123,595			—			—			—			—			—
Other income		1,739			2,186			3,319			3,243			10,487			3,270			4,563			4,769			1,706			14,308
Total revenues		15,806			70,627			23,041			33,894			143,368			18,080			5,361			7,154			4,556			35,151
Losses and expenses
Losses and loss adjustment expenses		—			—			—			—			—			—			—			—			—			—
Other underwriting and operating (income) expenses		(5,847	)		21,731			21,145			18,283			55,312			18,400			16,918			19,925			24,013			79,256
Interest expense		11,284			11,370			9,883			8,331			40,868			8,350			8,322			8,358			8,253			33,283
Total losses and expenses		5,437			33,101			31,028			26,614			96,180			26,750			25,240			28,283			32,266			112,539
Income (loss) before equity in (losses) earnings from unconsolidated subsidiaries and income taxes		10,369			37,526			(7,987	)		7,280			47,188			(8,670	)		(19,879	)		(21,129	)		(27,710	)		(77,388	)
Equity in (losses) earnings from unconsolidated subsidiaries		(194	)		(152	)		(121	)		(121	)		(588	)		8			(28	)		289			(55	)		214
Income (loss) before income taxes		10,175			37,374			(8,108	)		7,159			46,600			(8,662	)		(19,907	)		(20,840	)		(27,765	)		(77,174	)
Income tax expense (benefit)		3,697			10,012			(2,684	)		2,184			13,209			(6,528	)		(8,869	)		(6,015	)		(7,932	)		(29,344	)
Net income (loss)	$	6,478		$	27,362		$	(5,424	)	$	4,975		$	33,391		$	(2,134	)	$	(11,038	)	$	(14,825	)	$	(19,833	)	$	(47,830	)
Balance Sheet Components - As of Quarter End	12/31/2008			9/30/2008			6/30/2008			3/31/2008						12/31/2007			9/30/2007			6/30/2007			3/31/2007
	(Dollars in thousands)															(Dollars in thousands)
Assets
Investments:
Fixed income securities	$	135,230		$	134,222		$	50,080		$	51,979					$	52,974		$	53,088		$	53,120		$	53,849
Equity securities: common		—			—			987			1,242						1,242			1,275			3,477			4,250
Short term investments		1,300			1,300			1,300			1,300						1,300			1,301			1,300			1,300
Total investments	$	136,530		$	135,522		$	52,367		$	54,521					$	55,516		$	55,664		$	57,897		$	59,399
Cash and cash equivalents		119,305			118,659			224,779			40,214						51,512			45,335			163,700			100,574
Investments in unconsolidated subsidiaries		15,295			15,360			15,646			15,493						14,914			15,158			15,224			15,200
Property, equipment and software, net of accumulated depreciation and amortization		76,033			77,136			78,042			78,627						79,142			79,594			80,807			81,867
Other (liabilities) assets		(26,852	)		(17,281	)		(5,837	)		8,821						49,657			39,901			42,165			14,222
Total assets	$	320,311		$	329,396		$	364,997		$	197,676					$	250,741		$	235,652		$	359,793		$	271,262
Liabilities
Unearned premiums	$	20		$	21		$	18		$	26					$	29		$	21		$	25		$	33
Debt		481,764			532,177			554,694			364,378						446,593			446,593			446,593			446,593
Other (assets) liabilities		(25,316	)		(10,820	)		(7,122	)		7,893						(515	)		(16,256	)		(2,423	)		(76,061	)
Total liabilities		456,468			521,378			547,590			372,297						446,107			430,358			444,195			370,565
Shareholder’s deficit		(136,157	)		(191,982	)		(182,593	)		(174,621	)					(195,366	)		(194,706	)		(84,402	)		(99,303	)
Total liabilities and shareholder’s deficit	$	320,311		$	329,396		$	364,997		$	197,676					$	250,741		$	235,652		$	359,793		$	271,262

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