NEW YORK (
saw its shares drop some 54% after the mortgage insurer announced it may have to stop writing new insurance in several states due to inadequate capital levels in one of its major subsidiaries, PMI Mortgage Insurance Co. (MIC).
"In light of the Company's results in the second quarter of 2011, the Company expects that the number of states in which MIC is precluded from writing new business will significantly increase," PMI stated in its second-quarter filing.
PMI lost $135 million, or 83 cents per share, compared to $151 million, or $1.11 per share a year ago. Shares were down 55% to 40 cents in midday trading. Two other mortgage insurers,
MGIC Investment Corp.
were both down more than 16%.
-- Written by Dan Freed in New York
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