Genworth Financial Inc.
) reported fourth-quarter 2013 net operating income of 38 cents
per share. The results were nearly 27% higher than the Zacks
Consensus Estimate and 15% above the year-ago level.
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Net income came in at 41 cents per share, up 21% year over year.
Genworth witnessed robust performance at U.S. Mortgage Insurance
and U.S. Life Insurance. The long-term care insurance continues
to benefit from progress on rate actions.
Following a robust performance, shares of Genworth gained 4.4% in
the after-market session.
Genworth delivered operating net income of $1.24 per share in
2013 on revenues of $9.4 billion.
The bottom line exceeded the Zacks Consensus Estimate by 12% and
the 2012 number by a whopping 51%. The top line however fell
short of the 2012 equivalent by 2.5%.
The company reported net income of $1.12 per share, up 70% year
Genworth's total revenue decreased 2.2% year over year to $2.41
billion. The decline was primarily due to lower net investment
income (down 0.6%), lower premiums (down 0.7%) as well as lower
insurance, investment product fees, and other (down 17.7%). The
top line, however, topped the Zacks Consensus Estimate of $2.39
Total benefits and expenses declined 1.7% year over year to $2.1
Quarterly Review by Segment
U.S. Life Insurance
: Net operating income improved 63% year over year to $119
million. Favorable results across long-term care insurance, U.S.
Insurance and fixed annuity product lines aided the improvement.
Global Mortgage Insurance
: The segment's net operating income of $107 million in the
quarter declined 19% year over year. Robust results at U.S.
Mortgage Insurance (rebounding from a year-ago loss) was
partially offset by soft results at International Mortgage
Corporate and Run-Off
: Net operating loss was $33 million in the reported quarter,
narrower than $45 million loss incurred in the year-ago quarter.
Genworth exited 2013 with cash, cash equivalents and invested
assets of $73.5 billion, down 6.6% year over year.
Genworth's long-term borrowings stood at $5.16 billion as of Dec
31, 2013, up 8.1% year over year due to notes issuance.
In Dec 2013, Genworth completed a $400 million senior notes
offering. It made capital contributions of $300 million to
Genworth Mortgage Holdings, LLC and $100 million to Genworth
Mortgage Insurance Corporation (GMICO) . The contributions were
made in anticipation of higher capital requirements due to be
imposed by government-owned and government-sponsored enterprises
(GSEs) as part of the anticipated revisions to their eligibility
standards for qualifying as mortgage insurers.
Performance of Other Life Insurers
StanCorp Financial Group Inc.
) fourth-quarter 2013 operating earnings of $1.49 per share
exceeded the Zacks Consensus Estimate by 26.3% and the
year-ago number by 67%.
Reinsurance Group of America Inc
) reported fourth-quarter 2013 operating income of $2.17 per
share, significantly exceeding the Zacks Consensus Estimate of
$1.96. Results were, however, down 11.1% year over year.
) reported fourth-quarter 2013 operating net income of $1.46 per
share, in line with the Zacks Consensus Estimate. On a
positive note, the number increased 9.8% year over year.
Genworth presently carries a Zacks Rank #3 (Hold).