Genworth Financial Announces Third Quarter 2016 Results

RICHMOND, Va., Nov. 3, 2016

• Net Loss¹ And Net Operating Loss² Included $548 Million After-Tax, Or $1.10 Per Diluted Share, Of Net Unfavorable Items Relating To Increase To Long Term Care Insurance (LTC) Claim Reserves & Deferred Tax Charges
• Strong Loss Ratio, New Insurance Written (NIW) And Capital Levels In U.S. Mortgage Insurance (MI)
• Strong Loss Ratio In Canada MI; Loss Ratio Higher In Australia MI From Continued Pressure In Queensland And Western Australia
• Completed Repatriation Of Bermuda Subsidiary On October 1, 2016 As Part Of U.S. Life Insurance Restructuring Plan
• Holding Company Cash And Liquid Assets Increased To Approximately $1.2 Billion

Genworth Financial, Inc. (NYSE: GNW) today reported results for the period ended September 30, 2016. The company reported a net loss of $380 million, or $0.76 per diluted share, in the third quarter of 2016, compared with a net loss of $284 million, or $0.57 per diluted share, in the third quarter of 2015. The net operating loss for the third quarter of 2016 was $405 million, or $0.81 per diluted share, compared with net operating income of $64 million, or $0.13 per diluted share, in the third quarter of 2015. The net loss and net operating loss included $548 million after-tax, or $1.10 per diluted share, of net unfavorable items discussed below.

As previously announced, during the third quarter of 2016, the company completed a review of its LTC claim reserves. The company made several changes to its assumptions and methodologies primarily impacting claim terminations, benefit utilization and incurred but not reported reserves. As a result of these changes, claim reserves were increased by approximately $435 million pre-tax resulting in a charge to earnings of $283 million after-tax, or $0.57 per diluted share. Additionally, the company recorded a non-cash charge of $265 million, or $0.53 per diluted share, related to deferred tax assets that are not expected to be utilized before their expiration in light of the company's latest financial projections, including the impact to current and future earnings associated with higher expected claim costs in LTC and sustained low interest rates.

"While our mortgage insurance performance remained strong, it was overshadowed by the previously announced charges related to the review of our LTC claim reserves and taxes," said Tom McInerney, President and CEO. "LTC remains challenged, but we continue to receive significant premium rate increases and remain focused on executing our multi-year rate action plan."

Financial Performance

Consolidated Net Loss &
Net Operating Income (Loss)   ARIVA.DE Börsen-Geflüster Kurse Genworth Financial 5,88 $ 0,00%
			Three months ended September 30
			(Unaudited)
			2016						2015
						Per						Per
						diluted						diluted			Total
(Amounts in millions, except per share)			Total			share			Total			share			% change
Net loss available to Genworth's common stockholders			$	(380)		$	(0.76)		$	(284)		$	(0.57)		(34)%
Net operating income (loss)			$	(405)		$	(0.81)		$	64		$	0.13		NM3
Weighted-average diluted shares4				498.3						497.4
			Three months ended September 30
			(Unaudited)
			2016						2015
Book value per common share						$	29.84					$	27.29
Book value per common share, excluding accumulated other comprehensive income (loss)						$	19.40					$	20.30

The net loss was impacted by net investment gains, net of taxes and other adjustments, of $12 million in the quarter, compared to net investment losses of $21 million in the prior year. The net loss in the prior year reflected an after-tax loss of $296 million related to a write-off of deferred acquisition costs (DAC) from entering into a life block sale.

Net investment income increased to $805 million in the quarter, up from $779 million in the prior quarter and up from $783 million in the prior year. Prepayment speed adjustments related to residential mortgage-backed securities were favorable versus both the prior quarter and prior year in addition to favorable variable investment income compared to the prior quarter. The reported yield and core yield² for the current quarter were 4.62 percent and 4.51 percent, respectively.

Net operating income (loss) results are summarized in the table below:

Net Operating Income (Loss)
(Amounts in millions)				Q3 16			Q2 16			Q3 15
U.S. Mortgage Insurance				$	67		$	61		$	37
Canada Mortgage Insurance					36			38			38
Australia Mortgage Insurance					14			15			21
U.S. Life Insurance					(207)			55			40
Runoff					12			6			(4)
Corporate and Other					(327)			(52)			(68)
Total Net Operating Income (Loss)				$	(405)		$ Werbung Mehr Nachrichten zur Genworth Financial Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 18.04.24 - PR Newswire Fidelity Japan Trust Plc - Transaction in Own Shares 18.04.24 - PR Newswire Norges Bank - Form 8.3 - International Distributions Services plc Auf zur INVEST am 26.+ 27.04.2024    Foto: Landesmesse Stuttgart GmbH - Jetzt kostenloses Ticket sichern! weiterlesen» Anzeige wo-site-teaser-box-16688_site-teaser-box_2024-04-17_09%253A00%253A00_2024-04-22_09%253A00%253A59