"We did not expect the speed or degree of the unprecedented turn of the housing market," Chief Executive Officer Michael Fraizer said in a conference call today. Fraizer has said Genworth covered too many mortgages in Florida, where the foreclosure rate is above the national average.
Genworth Warns, May Post Loss in 2008
Genworth Financial, the fifth-largest mortgage insurer, warned that borrower defaults may to push it into the red in 2008 (hat tip, Calculated Risk). In an investor presentation on Tuesday, the company forecast a potential loss as large as 25 cents per share next year, driven in large part by the company's mortgage business. From Bloomberg: