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PMI MORTGAGE 'AAA' CLAIMS-PAYING RATING ON FITCHALERT NEGATIVE -- FITCH FINANCIAL WIRE --

 PMI MORTGAGE 'AAA' CLAIMS-PAYING RATING ON FITCHALERT NEGATIVE
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Oct. 8 /PRNewswire/ -- PMI Mortgage Insurance Co.'s 'AAA' claims-paying ability rating is placed on FitchAlert with negative implications. This action is prompted by PMI's announcement today that it could terminate a $300 joint and several reinsurance agreement over the next 9 months. This agreement with AXA RE FRANCE and Capital Reinsurance Co. provides capital support directly to PMI under certain conditions.
 PMI's decision to cancel is based on unexpected deterioration in the agreement's economics and its ultimate cost to PMI. PMI continues to be fully covered under the provisions of the current agreement. Furthermore, under certain circumstances, the current agreement could remain in force for up to five years. PMI is actively pursuing a renegotiation of the current agreement or other comparable coverages that could result in no change in PMI's rating.
 PMI's business and financial fundamentals in 1992 remain very strong. The mortgage insurer is having a record year in earnings and continues to build its statutory capital base, which was over $400 million at June 30. Fitch will closely monitor developments with respect to PMI's capital support agreements as well as the operations of the insurer and its immediate parent, Allstate Insurance Co.
 -0- 10/8/92
 /CONTACT: David P. Wells, CFA, 212-908-0517, or Lygia X. Campbell, 212-908-0695, both of Fitch/ CO: PMI Mortgage Insurance Co. ST: Illinois IN: INS SU: RTG


PS -- NY110 -- 8088 10/08/92 17:10 EDT
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Publication:PR Newswire
Date:Oct 8, 1992
Words:247
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