Insurance company Genworth Financial, Inc. (GNW) reported Tuesday a profit for the fourth quarter that increased from last year, reflecting lower costs and expenses. Operating earnings per share topped analysts' expectations, while quarterly revenues missed their estimates.
"U.S. mortgage insurance continued its recovery in the fourth quarter, and the company achieved a number of its strategic goals to improve financial flexibility highlighted by the comprehensive U.S. capital plan announced in January," President and CEO Tom McInerney said in a statement.
McInerney added, "However, results in the U.S. Life Insurance Division were mixed, and I am disappointed in our long term care results. We are focused on executing our plans to rebuild shareholder value."
McInerney took over as the new CEO of the company after Chairman and CEO Michael Fraizer resigned from the positions on May 1. in the interim, CFO Martin Klein served as acting CEO.
The Richmond, Virginia-based S&P 500 component posted net income of $166 million or $0.34 per share for the fourth quarter, higher than $142 million or $0.29 per share in the prior-year quarter.
Excluding items, net operating income for the quarter was $167 million or $0.34 per share, compared to $124 million or $0.25 per share in the prior-year quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share for the fourth quarter. Analysts' estimates typically exclude special items.
The company said net income and net operating income for the latest quarter "included a favorable adjustment of $78 million associated with the finalization of the new Government Guarantee framework in Canada."
Total revenues for the quarter declined to $2.54 billion from $2.62 billion in the same quarter last year, but missed seven Wall Street analysts' consensus estimate of $2.56 billion by a whisker.
Total premiums for the quarter declined to $1.32 billion from $1.35 billion, and net investment income grew to $840 million from $827 million last year. Meanwhile, insurance and investment product fees and other revenues decreased to $367 million from $440 million last year.
Total benefits and expenses declined to $2.19 billion from $2.44 billion in the year-ago quarter, with acquisition and operating expenses, net of deferrals, dropping to $330 million from last year's $569 million.
For fiscal 2012, the company reported net income of $323 million or $0.65 per share, sharply higher than $49 million or $0.10 per share in the prior year. Total revenues for the full year declined to $10.02 billion from $10.37 billion in the previous year. Street was looking for earnings of $0.71 per share on annual revenues of $10.01 billion.
GNW closed Tuesday's regular trading session at $9.17, up $0.02 or 0.22% on a volume of 7.82 million shares.
by RTT Staff Writer
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