The earnings report of Genworth Financial Inc (NYSE:GNW) came in and has proved to be the eighth consecutive profitable quarter. Moreover, apart from the profit earned in the quarter, the insurers have also managed to narrow the US mortgage insurance losses which were following the recovery of the market.
In the third quarter report earnings, the company has managed to narrow their loss of $3 million as compared to the loss of $37 million in the United States of America mortgage insurance business last year. Also the underwriters of the company are now expecting greater cuts in the United States of America mortgage insurance business losses for the upcoming quarter. Nine years ago, Genworth Financial Inc was spun off from the industrial conglomerate called General Electric.
The huge losses which Genworth Financial Inc suffered was due to the burst of the United States of America housing bubble which led to large scale mortgage defaulting there by driving up claims over all the unsettled home loans. Being a result of this, the insurers had to suffer the loss.
But with time, things are getting back into place and the insurers who suffered a huge amount of loss are not being benefited from the recovering housing market that is being recovered on a rapid rate.
Genworth Financial Inc is getting the benefits as the low mortgage rates are attracting more and more Americans in to buying new homes.
Also due to this the insurers are getting a net profit of around $108 million. A year ago, Genworth Financial Inc also realized a net profit of $35 million. But the company experienced a drop in the revenue due to poor premium and low investment income. But with time, things changed and now Genworth Financial Inc has a market cap of $7 billion.
