Event Brief of Q4 2004 The PMI Group, Inc. Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

CORPORATE PARTICIPANTS

. Glen Corso, PMI Group, Inc., Group SVP, Corporate Capital Management & Corporate Relations . Roger Haughton, PMI Group, Inc., Chairman & CEO . Don Lofe, PMI Group, Inc., EVP & CFO . Steve Smith, PMI Group, Inc., President & CEO, PMI Mortgage Insurance Co. . Brad Shuster, PMI Group, Inc., President & CEO, PMI Capital Corporation

OVERVIEW

4Q04 consolidated revenues from continuing operations exceeded $1b up 16% YoverY. Consolidated net income from continuing operations up approximately 34% to more than $366m, up from approximately $274m YoverY net income.Grew total consolidated net income by $399m, or $3.87 per share in 2004 up from 299m or $3.09 per share in 2003. Total incurred losses for U.S. Mortgage Insurance operations expected to range between $250-275m. Q&A focus: Credit quality and outlook.

FINANCIAL DATA

A. Key Data From Call 1. 3Q04 Consolidated revenues from continuing operations exceeded $1b. 2. Consolidated net income from continuing operations up approximately 34% to more than $366m. 3. Grew total consolidated net income by $399m, or $3.87 per share in 2004. 4. Primary insurance in force, up nearly 13%, to approximately

$270b in 2004, from approximately $240b YoverY. 5. Total incurred losses for U.S. Mortgage Insurance operations expected to range between $250-275m.

PRESENTATION SUMMARY

S1. Business Review (R.H.) 1. Business Review 4Q04: 1. Highlights:

1. 2004 had rebound vs. 2003 2. Past year reported record levels of both consolidated revenues and net income. 3. Consolidated revenues from continuing operations exceeded $1b, up 16% YoverY.

4. Consolidated net income from continuing operations up approximately 34% to more than $366m, up from approximately $274m in 2003 net income.

5. Grew total consolidated net income by $399m, or $3.87 per

share in 2004, up from $299m or $3.09 per share in 2003. 6. Set a record for consolidated primary insurance in force, up nearly 13%, to approximately $270b in 2004, from approximately $240b YoverY.

2. US Mortgage Insurance Operations: 1. Realized gains in 2004, highlighted by growing market share and new insurance written volume. 2. Domestic persitency continued to improve, up to 61.8% at year end 2004 from 45.1% YoverY. 3. Primary risk enforce up YoverY increasing $1b to $25.7b. 4. This increase contributed to the growth of net premiums earned which totaled $168m for 4Q04 and $634m for the year respectively, vs. $145m and $593m YoverY.

5. 4Q04 YoverY growth nearly 16%. 6. PMI capital corporation represented 4% of consolidated net operating income in 2004, vs. 33% YoverY. 7. Increase met goal of having PMI capital corporation

generating 40 to 50% of the PMI group's consolidated net operating income. 3. Financial Guaranty: 1. Believe investment in FGIC has been a timely investment, considering the large volume of mortgage-related

securitizations in the market in 2004. 2. Issuers of mortgage-backed securities purchased bond insurance for $79b in new transactions of 2004, up from $32b YoverY. 3. FGIC was awarded the largest share of that business, providing credit enhancement of approximately 30% of all ensured MBS issued in 2004. 4. According to one industry source FGIC moved from fourth to second in the Financial Guaranty, which includes all insured publicly issued ABS and MBS issuance. 5. FGIC has been increasing business volume by expanding the breadth of asset classes it will guaranty. 6. FGIC contributed $56.6m in equity earnings to PMI's consolidated net income in 2004, approx. midpoint of guidance. 7. PMI and FGIC participated in two transactions in 2004. 4. International Operations: 1. Premiums earned totals $136m for 2004, vs. $100m 2003, up 31% YoverY. 2. PMI Australia delivered on a record of net income growth outstanding claims and delinquency performance. 3. PMI Europe more than doubled its operating income; launched first PMI Europe continental office establishing a presence in Milan, Italy.

4. Hong Kong branch exceeded previous results. 5. Two weeks ago executed a letter of intent granting an option to Credit Suisse First Boston to purchase interest in select portfolios servicing or SPS. 6. If option be exercised by July 31st, 2005, transaction will complete to a two-pronged strategy of Mortgage Insurance and

Financial Guaranty with the ultimate objective of being a global credit enhancement provider. 5. U.S. Mortgage Insurance Industry in 2005: 1. Regarding credit quality and competition from piggyback or 801010 loans, believe have consistently followed a balanced and competitive risk management philosophy that's focused on prudent growth while avoiding excessive concentrations of risk. 2. On the competitive front, U.S. mortgage insurance industry faced considerable competition from 801010 loans in 2004. 3. Expect this dynamic to continue in 2005. 4. Believe some of the factors that gave rise to the growth of these products will begin to change in 2005. 5. Believe mortgage insurance industry is a fundamental and critical component of U.S. housing finance system.

S2. Financials (D.L.) 1. Letter of Intent, Sale of SPS: 1. Details:

1. Signed a letter of intent with Credit Suisse First Boston

and affiliate to enter into an option purchase agreement regarding SPS. 2. Under the terms of the proposed transaction, CS First Boston has the option to acquire 100% of the outstanding stock of

SPS. 3. Option expires on July 31st, 2005. CS First Boston will sell mortgage servicing rights with an aggregate balance of $3m to SPS with an additional $3b to be sold to SPS by December 31st, 2005, if CS First Boston does not exercise their option to purchase SPS. 4. Based upon the financial terms of the proposed financial transaction, PMI realizes a capital loss for 4Q04 related to the invest of SPS of …