Genworth reports higher profit in fourth quarter
THE TAKE: Henrico County-based Genworth Financial Inc, a Fortune 500 insurance holding company, saw net income rise 17 percent in the fourth quarter of 2012..
New income: $166 million in the fourth quarter, up from $142 million in the same quarter in 2011.
Earnings per share: 34 cents per diluted share, up from 29 cents
Net operating income: $167 million, or $0.34 per diluted share, compared with $124 million, or 25 cents per diluted share.
Current quarter net income and net operating income included a favorable adjustment of $78 million associated with the finalization of the new Government Guarantee framework in Canada.
THE COMPANY’S TAKE:: “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,” Tom McInerney, the company’s president and CEO. “However, results in the U.S. Life Insurance Division were mixed …”
Net investment gains, net of tax and other adjustments, were $1 million in the quarter and in the prior year. Total impairments, net of tax, were $14 million in the current quarter and $70 million for the year ended December 31, 2012. In the fourth quarter of 2011, a non-cash impairment charge of $19 million after-tax was recorded in Corporate and Other activities to write-off all of the goodwill associated with the reverse mortgage business.