Genworth profit tumbles, plans partial sale of Australian mortgage biz
While mortgage insurer Genworth Financial (GNW) saw its mortgage losses decline in the third quarter, the company's net income tumbled to $29 million, or 6 cents per share, for the period. That compares to a net income of $83 million, or 17 cents per share, in the third quarter of 2010. Investment losses of $60 million cut into the firm's earnings. Genworth also announced it's pursuing a minority public offering of its Australian mortgage insurance business. Genworth said it anticipates selling 40% of its holdings in the Australian business segment. The company reported that its U.S. mortgage insurance business posted a net loss of $79 million, which is improved from a loss of $152 million a year earlier. Genworth claims its mortgage insurance losses fell on good loss mitigation results, improved stability in the aging of loan delinquencies and higher levels of profitability tied to new business. In Canada, the company's stream of newly written insurance rose 6% sequentially, while falling 4% from last year. Within the U.S. segment, total delinquencies on mortgages insured by Genworth fell 11% from last year, while rising 1% from the previous period. ?Write to Kerri Panchuk.