Genworth Financial Inc. (GNW), Thursday reported a profit for the second quarter, compared to a loss last year, reflecting lower expenses that more than offset a decline in revenues. Adjusted operating earnings for the quarter came in ahead of analysts' estimates.
The Richmond, Virginia-based company's net income available to common stockholders was $42 million or $0.08 per share for the second quarter, compared to a loss of $50 million or $0.11 per share in the previous year.
Genworth's results for the quarter included net operating income of $114 million from the Retirement and Protection segment and $105 million from the International segment, partially offset by lower net operating losses of $40 million in the U.S. Mortgage Insurance segment and a loss of $61 million in Corporate and Other.
The impact of foreign exchange on net operating income in the second quarter of 2010 was a favorable $13 million versus the prior-year quarter.
Net operating income available to common stockholders was $118 million or $0.24 per share, compared to $9 million or $0.02 per share in the year-ago quarter.
Net operating income, before provision for non-controlling interests, for the second quarter of 2010 was $153 million or $0.31 per share, compared to net operating income of $9 million or $0.02 per share in the second quarter of 2009.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues declined to $2.41 billion from $2.48 billion in the second quarter of 2009. Analysts estimated revenue of $2.56 billion for the quarter.
Michael Fraizer, chairman and chief executive officer, said, "Genworth continued strategic progress on all fronts delivering strong international results, good sales momentum and improved performance in U.S. Mortgage Insurance and investment income."
Total policy benefits and expenses for the quarter declined to $2.34 billion from $2.54 billion a year ago.
Total assets under management increased to $46.43 billion from $42.98 billion a year ago.
Amongst others in the industry, New York-based Life insurer MetLife Inc. (MET), today posted a profit for the second quarter, driven by hefty investment gains, as well as higher investment income. Net income attributable to common stockholders was $1.5 billion or $1.84 per share for the second quarter, compared to a loss of $1.4 billion or $1.74 per share in the prior-year quarter. Second quarter operating revenues increased 5% to $12.83 billion from $12.23 billion in the same quarter last year.
Prudential Financial Inc. (PRU) is slated to report its second-quarter earnings on August 4. Analysts estimate earnings of $1.31 per share, on revenues of $7.26 billion for the second quarter.
GNW closed Thursday's regular trading at $15.79, up $0.23 or 1.48%, on a volume of 13.62 million shares on the NYSE. In after hours, the stock declined $0.79 or 5.00%, trading at $15.00. In the past 52-week period, the stock trended in a range of $6.45 to $19.36, with a 3-month average volume of 10.69 million shares.
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