The mortgage and bond insurance sector is experiencing strong buying interest during Thursday's trading. The positive sentiment came after PMI Group, Inc. (PMI) announced it has sold its operations in Australia.
PMI stock posted one of the biggest gains among the sector, jumping nearly 63%. Meanwhile, shares of Syncora Holdings Ltd. (SCA), LandAmerica Financial Group, Inc. (LFG), MGIC Investment Corp. (MTG) and Ambac Financial Group (ABK) all rose more than 15%.
Around 1:00 pm Eastern Time, PMI shares were up $1.71 to $4.50 a share, while Syncora stock was up 40 cents at $2.33 and shares of LandAmerica were up $2.24 at $16.05. Meanwhile, MGIC stock was up $1.01 at $8.12 and Ambac shares were up 60 cents at $4.54.
Other stocks moving notably to the upside include MBIA Inc. (MBI), First American Corp. (FAF), American International Group, Inc. (AIG) and Fidelity National Financial Inc. (FNF).
Before the opening bell on Thursday, PMI said it agreed to sell its Australian operations to QBE Insurance Group Ltd. for approximately $920 million, subject to adjustments.
Under the deal, PMI will sell its mortgage insurance subsidiary and related Australian holding company to Australia's general insurance and reinsurance group to enhance PMI's overall liquidity as well as to provide opportunities for its U.S. mortgage insurance operations.
The company said it will receive 80% of cash at closing and 20% in the form of an interest-bearing promissory note issued by QBE.
PMI's chairman and CEO Steve Smith stated, "This transaction also represents an important step in our five-point plan for progress, specifically maintaining our financial strength and focusing on our core U.S. mortgage insurance business."
Related to this transaction, PMI will also fund premiums of approximately $46.5 million to assist in procuring an excess of loss reinsurance cover for PMI Australia. The agreement provides for reinsurance profit-sharing for one-half of the reinsurance premiums at the end of the three-year policy life, subject to certain conditions.
PMI Mortgage Insurance Co. acquired the Australian operations from AMP Ltd in 1999 and CGU's Australian mortgage insurance company in 2001. The combined operations of the AMP and CGU acquisitions became PMI Australia.
Closing of this transaction is expected to be before the end of September 2008. Credit Suisse and Caliburn Partnership acted as financial co-advisors to The PMI Group.
Additionally, PMI and QBE have reached an agreement for the sale of Hong Kong-based PMI Asia. As of June 30, the net tangible assets of PMI Asia were approximately $55 million. PMI said further details of this transaction will be announced after the parties sign a definitive agreement.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.