Mortgage

Genworth profitable on improving MI business, cost cuts

Genworth Financial Inc. (GNW) recorded an 85% jump in second-quarter earnings as the company's mortgage insurance business continued to contribute positively.

Per the WSJ:

The company's U.S. mortgage insurance unit returned to profitability in the first quarter, after five years in the red. Genworth had faced persistent investor skepticism over the unit, which had lost about $2 billion since the start of 2008. But the company's executives resisted calls to unload the business, insisting that its returns on policies sold in recent years would outweigh costs from coverage sold before the housing crisis.

In the latest period, the company's U.S. mortgage insurance business reported an operating profit of $13 million, compared with a year-earlier operating loss of $25 million.

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