2/2/2012 10:59 PM ET
(RTTNews) - Insurance company Genworth Financial, Inc. (GNW: News ) reported Thursday a profit for the fourth quarter compared to a loss last year, reflecting strong results from U.S. Life Insurance and U.S. Mortgage Insurance divisions. The company's international platform capital generation also remained strong. Adjusted earnings per share missed analysts' expectations by two cents, while quarterly revenues topped their estimates.
The Richmond, Virginia-based company posted net income of $107 million or $0.22 per share for the fourth quarter, compared to a net loss of $161 million or $0.33 per share in the prior-year quarter.
Excluding items, net operating income for the quarter was $86 million or or $0.17 per share, compared to loss of $135 million or $0.28 per share in the year-ago quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter edged up to $2.60 billion from $2.59 billion in the same quarter last year, and topped three Wall Street analysts' consensus estimate of $2.58 billion.
Total premiums for the quarter declined to $1.35 billion from $1.47 billion last year, and net investment income also decreased to $827 million from $863 million. Insurance and investment product fees and other revenues increased to $416 million from $300 million last year.
The company noted that beginning in the quarter it has resegmented its financial presentation as it began to operate through three divisions: Insurance and Wealth Management, Mortgage Insurance, and the Corporate and Runoff.
On a segmental basis, insurance and wealth management division earnings increased 12 percent to $145 million from a year ago, driven by U.S. Life Insurance results. Mortgage insurance division net operating loss sharply narrowed to $16 million from $254 million a year ago, driven by U.S. Mortgage Insurance results.
Corporate and runoff division net operating loss was $43 million, up from $11 million in the prior year.
For fiscal 2011, the company reported net income of $122 million or $0.25 per share, lower than $142 million or $0.29 per share in the prior year.
Excluding items, net operating income for the year grew to $214 million or or $0.43 per share from $126 million or $0.25 per share in the year ago. Analysts expected the company to report earnings of $0.45 per share for fiscal 2011.
Total revenues for the full year edged up to $10.34 billion from $10.09 billion in the previous year. Street was looking for full-year 2011 revenues of $10.54 billion.
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