Genworth's MI Unit Won't be Profitable Until 2011

Genworth Financial, whose mortgage insurance division has been bloodied by claims payments tied to record delinquencies, said the business will not turn an operating profit until mid-2011. Company CEO Michael Frazier said at the firm's annual investor day meeting in New York that the business will have to get through more delinquencies. He said losses will be mitigated by steps Genworth has taken to head off claims. According to figures compiled by NMN, Genworth operates the nation's fourth largest MI in terms of policies-in-force: $133 billion as of Sept. 30. Even though Genworth's MI unit continues to lose money it recently loosened some of its underwriting standards. Mr. Frazier said he expects U.S. mortgage delinquencies to peak in the coming year.