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.