Genworth’s U.S. mortgage insurance business recorded a profit for the second quarter in a row, as it earned $13 million in 2Q13, down from 1Q13’s $21 million, but much improved from the $25 million loss recorded in 2Q12.
Its international mortgage insurance operations, which include its share of the spun-out Canadian MI business, had an $89 million profit, an improvement over 1Q13’s $81 million profit and 2Q12’s $76 million profit.
The U.S. MI business wrote $6.3 billion of new insurance written during the quarter, compared with $4.7 billion in 1Q13 and $3.6 billion in 2Q12. In comparison,
In addition, the company had $2.2 billion of Home Affordable Refinance Program coverage written in the quarter which it does not classify as NIW.
Genworth’s risk-to-capital ratio as of June 30 is estimated at 22.4-to-1, reflecting the $100 million capital contribution made in April.
In its press release, Genworth said it “currently expects the U.S. mortgage insurance business to be modestly profitable in 2013 and expects that its 2014 results should improve over 2013. The company continues to expect seasonality in the remainder of 2013, which could cause the second half of the year to return to a marginal net loss profile.”
Overall, Genworth had net income for the quarter of $141 million, up from $76 million one year prior.
