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Michael Fraizer, Chairman and Chief Executive Officer, said, "Genworth continued to make substantial progress across our business lines with improved sequential sales, emerging benefits from sound price increases in several lines, lower losses and strong financial flexibility."
For the third quarter, the Richmond, Virginia-based company posted net income of $45 million or $0.10 per share, compared to a net loss of $258 million or $0.60 per share in the prior-year quarter. Net income available to Genworth's common stockholders were $19 million or $0.04 per share, compared to net loss available to common stockholders of $258 million or $0.60 per share in the year-ago quarter.
Net operating income available to Genworth's common stockholders for the quarter dropped to $81 million or $0.18 per share from $220 million or $0.51 per share in the year-ago quarter. Net operating income, which excludes provision for non-controlling interests declined to $106 million or $0.24 per share from $220 million or $0.51 per share last year.
Genworth noted that foreign exchange negatively impacted net operating income by $6 million.
On average, 17 analysts polled by Thomson Reuters expected the company to post a loss of $0.02 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.
In the preceding second quarter, Genworth posted a net loss of $50 million or $0.11 per share , compared to a net loss of $109 million or $0.25 per share in the prior year quarter. Net operating income plunged to $9 million or $0.02 per share from $212 million or $0.49 per share in the year-ago quarter.
Total revenues for the recent third quarter rose to $2.39 billion from $2.17 billion in the year earlier period. Street analysts' had a consensus revenue estimate of $2.52 billion for the quarter.
Net investment losses, net of tax and other adjustments, for the quarter narrowed significantly to $62 million from $478 million, while net unrealized investment losses were to $1.4 billion, compared to $3.0 billion in the prior year quarter.
Premiums for the quarter dropped to $1.50 billion from $1.74 billion in the previous year quarter, while net investment income decreased to $759 million from $918 million last year.
Segment wise, Retirement and Protection net operating income for the quarter earned $120 million, down from $178 million in the prior year quarter. International earnings decreased to $96 million from $166 million last year. Net operating loss for the U.S. Mortgage Insurance segment narrowed to $116 million from $121 million in the year earlier period and included a $62 million charge from a previously announced settlement of an arbitration proceeding with a lender.
Corporate and other operating loss widened to $19 million from $3 million in the year-ago quarter, primarily from lower expenses in the third quarter of 2008. U.S. mortgage insurance business achieved three consecutive quarters of increased loss mitigation savings and decreased losses and had net loss mitigation savings of $224 million in the quarter, bringing the year to date total to $557 million.
During the third quarter of 2009, Genworth completed an equity offering of 55.2 million shares for net proceeds of $622 million, bringing total outstanding shares at the end of the quarter to 488.5 million. Genworth's book value per share grew 10% on a sequential basis, reflecting improvement in the investment environment and the additional equity capital partially offset by an increased number of shares.
At September 30, 2009, Genworth's stockholders' equity increased to $12.4 billion or $25.42 per share, compared to $10.5 billion or $24.24 per share as at September 30, 2008.
Amongst others in the industry, New York-based Life insurer MetLife Inc. (MET | Quote | Chart | News | PowerRating), reported a loss for the third quarter, hurt mainly by derivative losses, and wider investment losses. However, the company's quarterly operating earnings grew by 18% over last year. The company's third quarter revenues slipped 1% to $12.41 billion from $12.57 billion in the same quarter last year.
Prudential Financial Inc. (PRU | Quote | Chart | News | PowerRating) is slated to report its third quarter results on November 4, with analysts projecting earnings of $1.33 per share on revenues of $6.65 billion
GNW closed Thursday's regular trading at $10.18, up $1.49 or 17.15%, on a volume of 43.87 million shares on the NYSE. In after hours, the stock further gained $1.17 or 11.49%, trading at $11.28. In the past 52 weeks, the stock trended in a broad range of $0.70 - $13.68, with a three-month average volume of 22.61 million shares.
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