Mortgage insurance company The PMI Group Inc. (NYSE: PMI) narrowed its loss for the third quarter, citing a decline in losses and loss adjustment expenses (LAE) and its European operations which posted a net income from continuing operations of $27.4 million, helped by a tax benefit and net gains from credit default transactions. Q3 2009 loss from continuing operations came to $87.9 million, or $1.06 per basic and diluted share, compared with the year-ago quarter’s loss from continuing operations of $149.3 million, or $1.83 per basic and diluted share. The PMI Mortgage Insurance Co. unit has increased its statutory capital by about $139 million, attributable to completion of various capital initiatives including restructuring of certain modified pool policies, the company reported.