Genworth returns to 4Q profit, driven by improved mortgage unit
Genworth Financial ($10.78 0%) reported net income of $107 million, or 22 cents a share, compared with a net loss of $161 million, or 33 cents a share, in the fourth quarter of 2010, driven in part by mortgage insurance results.
"For Genworth, 2011 was a year of repositioning ... to move through an uncertain environment and provide a foundation for improved shareholder value," said Michael Fraizer, chairman and CEO. "We took important steps to improve our focus, strengthen risk buffers and capital generation, and support future redeployment of capital."
Fourth-quarter earnings improvements were driven by U.S. life and mortgage insurance results, Genworth said.
The mortgage insurance division net operating loss was $16 million, compared with a net operating loss of $254 million a year ago, driven by U.S. mortgage results. The U.S. division narrowed its loss to $94 million from $352 million a year ago.
The improvement reflects a decrease in new delinquencies along with a favorable geographical mix of new delinquencies, fewer net cures associated with lower levels of loan modifications and a stable delinquency aging profile, Genworth said.
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