Mortgage insurer PMI Group says it swung to a first-quarter loss, due to hefty payouts on default claims amid the nation’s subprime mortgage crisis.

Walnut Creek, Calif.-based PMI Group Inc. says losses totaled $274 million, or $3.37 per share, compared with year-ago earnings of $102 million, or $1.16 per share. The latest period includes mortgage insurance losses of $172.5 million due to more claims, added loss reserves and a charge on PMI’s investment in bond insurer FGIC.

Revenues rose to $315.9 million, compared with $294.5 million in the same period last year.

Analysts surveyed by Thomson Financial expected a loss of $1.96 per share on revenue of $288.8 million.

The company affirmed its outlook for 2008 paid mortgage insurance claims of $825 million to $975 million.

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AP Business Writer Jennifer Malloy