CUNA Mutual Group Mortgage Insurance is stressing its independence from one of its founding companies, the PMI Mortgage Insurance Company, after Arizona insurance regulators took control of PMI under a court order.
PMI owns 50% of CMH MI, with CUNA Mutual Group owning the other 50%.
Under regulatory ownership, PMI has said it has started paying only 50% of claims.
CMG MI executives made it clear in a press release this week that the company is “a standalone, corporate entity with its own capital and dedicated staffing from its shareholders.”
“We remain dedicated to providing the same excellent service credit unions have grown to expect from our company,” said Kim Shaul, CMG MI senior vice president and co-general manager.
“In addition to the company’s solid operating performance and financial strength, CMG MI continues to enjoy the strong support from its joint venture partner CUNA Mutual Group,” said CUNA Mutual Group Vice President Sean Dilweg.
Dilweg reiterated earlier statements that “CMG MI will continue to benefit from CUNA Mutual’s management and financial strength as well as PMI’s ongoing operational services and expertise. The company is committed to serving credit unions over the long term.”
In support of its confidence, the insurer cited its capital ($1.45 billion through June 2011) and its A (excellent) rating from financial rating firm A.M. Best as well as its capital and reserve ratios.