Insured mortgages boost Genworth MI Canada’s Q2 performance

Insured mortgages boost Genworth MI Canada’s Q2 performance

Insured mortgages boost Genworth MI Canada’s Q2 performance

Spurred by robust performance in its insured mortgage arm, Genworth MI Canada reported a strong Q2 2019.

Earlier this week, the company announced that its second quarter saw net income of $110 million, with earnings per fully diluted common share of $1.26.

Net operating income stood at $120 million, with operating earnings per fully diluted common share of $1.38 and an operating return on equity of 12%.

As of June 30, Genworth estimated that its outstanding principal balance of insured mortgages was at approximately $205 billion, which was 40% of the original insured amount.

Meanwhile, as of June 30, the outstanding principal balance for all privately insured mortgages was at roughly $274 billion relative to the $350 billion aggregate outstanding principal limit.

“Having recently marked our 10-year anniversary as a public company, we are pleased with our solid track record of performance, including this quarter, which reflected a 15% loss ratio and a 12% operating return on equity,” president and CEO Stuart Levings said.

“We are encouraged by growth in our premiums written, largely driven by a stronger transactional insurance market. Additionally, we are pleased to have returned capital to shareholders in the quarter of approximately $100 million in the form of share repurchases and a special dividend, in line with our focus on capital efficiency.”

Genworth saw its new insurance written from transactional insurance grow by 12% annually to reach $5.3 billion. The firm specifically pointed at increased housing market activity as a major factor in this trend.

“Compared to the prior quarter, transactional new insurance written increased by $2.4 billion, primarily as a result of typical seasonality,” the company added.