I've been watching the progress of the PMI Group over the last few months. They provide a large share of the mortgage insurance in the U.S.. They have been selling off assets to improve their cash position. After all, most of their cash is going towards paying claims on defaulted mortgages.
Here is an excerpt from a press release dated September 18, 2008:
"The PMI Group, Inc. (NYSE: PMI) today announced that its Board of Directors has declared a quarterly cash dividend in the amount of 0.25 cents per common share. This represents a reduction of one cent per common share from prior quarters. This quarterly dividend is payable on October 15, 2008 to shareholders of record on September 30, 2008."
Since they're obviously undergoing some of their worst financial losses in their history, it makes you wonder if this just isn't an attempt to persuade the world they are stable.
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