The PMI Group, Inc. Announces Termination of Contingencies Permitting it to Recognize in its Financial Statements the Value of the Contingent Promissory Note Received in Connection with the PMI Australia Sale

The PMI Group, Inc. PMI announced today that QBE Insurance Group Limited has waived the right to make deductions to the value of the contingent promissory note (the "QBE Note") received from QBE in connection with the 2008 sale of PMI Australia to QBE. As a result of the termination of these contingencies, PMI will be able to recognize the value of the QBE Note in its consolidated GAAP and statutory financial statements for the quarter ended June 30, 2011. The payment due date of the QBE Note remains September 30, 2011. As the Company has previously reported, the Company is required, upon receipt of payment of the QBE Note, to make a $25 million payment to PMI Mortgage Insurance Co. under the terms of the agreement pursuant to which MIC assigned and transferred the QBE Note to PMI. In addition, as previously reported, upon payment of the QBE Note, PMI will be required to repay the approximately $50 million outstanding under PMI's credit facility. Following repayment of the credit facility, the Company's next debt principal maturity is scheduled to occur in September 2016. The QBE Note is valued at approximately $208 million (pre-tax) at maturity.