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Genworth earnings boosted by Canadian change

Genworth Financial fourth quarter earnings rise, boosted by Canadian guarantee change

Associated Press

RICHMOND, Va. (AP) -- Genworth Financial Inc. said Tuesday that its earnings rose 16 percent in the fourth quarter after it benefited from a change in how mortgages are guaranteed in Canada.

Net income in the fourth quarter rose to $166 million, or 34 cents a share, in the fourth quarter from $142 million, or 29 cents a share, in the same period a year ago.

Stripping out one-time items from investment gains and losses, the company said operating earnings were $167 million, or 34 cents a share.

On that basis, the results beat analysts' consensus forecasts that called for earnings of 28 cents a share, according to FactSet.

Total fourth-quarter revenue fell 2.5 percent to $2.54 billion. Analysts forecast $2.57 billion.

Net operating income at the company's Global Mortgage Insurance unit was $131 million, compared with a loss of $13 million in the same period a year ago. The unit's earnings were boosted after a new framework for mortgage guarantees was finalized, the Richmond, Va.-based company said. Exit fees were terminated, reversing an accumulated $78 million liability.

Net income for all of 2012 was $323 million, or 65 cents a share, compared with $49 million, or 10 cents a share, in 2011. Total revenue was $10.02 billion compared with $10.37 billion.

The company's stock fell 15 cents to $9.02 in after-hours trading.

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