Mortgage insurer Genworth Financial Inc. (GNW) posted a second-quarter profit of $76 million, or 16 cents a share, as its U.S. mortgage insurance operations saw notable improvements.
That compares to a net loss of $136 million, or 28 cents a share, for the second quarter of 2011.
Net operating income in 2Q hit $80 million, or 16 cents a share, down from a net operating loss of $113 million, or 23 cents a share, in the second quarter of 2011.
The firm’s total global mortgage insurance division saw its net operating income grow to $51 million from a net operating loss of $177 million a year earlier and a loss of $36 million in the recent first quarter.
The U.S. mortgage insurance division reported a net operating loss of $25 million, up from a loss of $43 million in 1Q and a net loss of $255 million a year earlier.
The American mortgage division reported a net loss that was significantly improved from a year earlier due to a decline in new delinquencies and effective loss mitigation programs, Genworth said in its earnings report.
The mortgage insurance division also benefited from a risk-to-capital waiver in the state of North Carolina that ensures the insurer can continue writing loans in the state under its current capital situation through July 31, 2014. By the end of 2Q, the U.S. mortgage insurance division had a risk-to-capital ratio of 29.5-to-1.
