The PMI Group (PMIR) Stock Analysis & Winston Score

PMI Group was a private mortgage insurance company based in the United States. It sold insurance policies that protected mortgage lenders when homebuyers could not afford a 20% down payment. Its main customers were banks and other lenders who wanted protection against borrowers defaulting on their home loans. The company earned money by collecting premiums from lenders and homeowners in exchange for covering potential losses on risky mortgages. PMI Group operated primarily in the U.S. but also had some international exposure through subsidiaries. The company was deeply damaged by the 2008 housing crisis, when a wave of mortgage defaults far exceeded what it had reserved for losses. By 2011, regulators placed its main insurance subsidiary into receivership, and the parent company filed for bankruptcy. The ticker and financial data shown today reflect a shell with no meaningful operating business, making the extreme negative margins and near-zero market cap a reflection of a company that has effectively ceased normal operations.