Genworth Takes $109M Loss in 2Q

Genworth Financial Inc., Richmond, Va., has reported a net loss of $109 million ($0.25 per share) for the second quarter, compared with net income of $379 million ($0.84 per share) in the same period of last year. The company reported net investment losses of $321 million for the period as it took a $326 million impairment related to subprime and alternative-A residential mortgage and asset-backed securities, the majority of which are now rated below single-A. Its U.S. mortgage insurance operations had a net operating loss of $59 million, compared with net operating income of $66 million one year ago. The company said 28% earned premium growth was more than offset by higher incurred losses. Genworth's international business saw an increase in net operating income, from $142 million a year ago to $183 million for the most recent quarter. It affirmed its outlook for 2008 operating earnings to be in the range of $2.25-$2.65 per share. "We continue to manage through a difficult environment in the U.S. housing and financial markets," said Michael D. Fraizer, chairman and chief executive. "We are actively mitigating risk in U.S. mortgage insurance as we build a strong 2008 book based on stringent guidelines and higher prices." The company can be found online at http://www.genworth.com.