Insurance company Genworth Financial, Inc. (GNW: Quote) reported Tuesday a profit for the second quarter compared to a loss from last year as loss at the U.S. mortgage insurance division sharply narrowed. Operating earnings per share missed analysts' expectations, while quarterly revenues came in line with their estimates.
"Total net operating income increased both year over year and sequentially, with substantial improvement in Global Mortgage Insurance results partly offset by declines in Insurance and Wealth Management," Acting CEO and CFO Martin Klein said in a statement.
The company is yet to find a permanent CEO after Chairman and CEO Michael Fraizer resigned from the positions on May 1.
The Richmond, Virginia-based company posted net income of $76 million or $0.16 per share for the second quarter, compared to a net loss of $136 million or $0.28 per share in the prior-year quarter.
Excluding items, net operating income for the quarter was $80 million or $0.16 per share, compared to a net loss of $113 million or $0.23 per share in the prior-year quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the second quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined to $2.52 billion from $2.66 billion in the same quarter last year, but matched five Wall Street analysts' consensus estimate of $2.52 billion.
The company's results were positively impacted by the improvement in global mortgage insurance division amid the continued improvement in results at U.S. mortgage insurance.
Total premiums for the quarter declined to $1.30 billion from $1.46 billion, and net investment income was down to $846 million from $881 million last year. Insurance and investment product fees and other revenues increased to $409 million from $359 million last year.
"In long term care, we are implementing significant rate actions and product changes as part of a company-wide focus on improving business performance, which is key in achieving our longer term goals and objectives as a company," Klein added.
GNW closed Tuesday's regular trading session at $5.04, up $0.06 or 1.18% on a volume of 9.12 million shares. However, the stock lost $0.33 or 6.55% in after-hours trading.
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by RTT Staff Writer
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