BULLETIN- PMI Group Inc. and PMI Europe Ratings Not Affected by Acquisition.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 6, 2003

(Standard & Poor's)--Standard & Poor's Ratings Services said today that its ratings on PMI Group Inc. (NYSE:PMI) (A+/Negative/--) and PMI's wholly owned subsidiary, PMI Mortgage Insurance Co. Ltd. (PMI Europe) (AA/Negative/--), will not be affected by the company's announcement earlier today that it has acquired the U.K. lenders' mortgage insurance (LMI) business of Royal & Sun Alliance Insurance PLC (R&SA).

As of July 1, 2003, R&SA's LMI portfolio had aggregate remaining exposure of $2.14 billion and generated paid claims totaling $4.6 million in 2002. Standard & Poor's will monitor the performance of the book of business given the magnitude of the assumed portfolio relative to PMI Europe's invested asset base of $108.4 million as of June 30, 2003.

Until now, PMI Europe has engaged primarily in investment-grade excess-of-loss mortgage insurance credit default swaps to gain a foothold in the nascent European mortgage insurance market. Standard & Poor's believes that the acquisition of R&SA's LMI business provides PMI Europe with the significant multiyear book of primary mortgage insurance initially envisioned when the company was formed in Jan. 2001.

For additional information on Standard & Poor's visit our web site at http://www.standardandpoors.com.