* Third-quarter net profit $108 mln vs $35 mln year earlier
* U.S. mortgage insurance loss $3 mln vs $37 mln last year
* Operating earnings 24 cents/shr vs est of 25 cents/shr
* Total revenue down 6 percent
Oct 29 Life and mortgage insurer Genworth
Financial Inc reported its eighth straight quarterly
profit as losses narrowed in its U.S. mortgage insurance
business due to a recovering housing market.
The U.S. mortgage insurance business reported a loss of $3
million in the third quarter, much smaller than its loss of $37
million a year earlier.
Genworth, which was spun off from industrial conglomerate
General Electric Co nine years ago, said it expects a
marginal net loss in the fourth quarter in the U.S. mortgage
insurance business due to seasonality.
Mortgage insurers such as Genworth, Radian Group Inc
and MGIC Investment Corp struggled to recoup losses
after the housing bubble burst and foreclosures soared, leaving
them with large claims on unpaid home loans.
However, the companies that survived the crunch have
benefited in more recent times from a recovering U.S. housing
market as low mortgage rates prompt more Americans to buy homes.
Genworth's net profit jumped to $108 million, or 22 cents
per share, in the third quarter ended Sept. 30, from $35
million, or 7 cents per share, a year earlier.
Total revenue, however, fell about 6 percent to $2.32
million as both premium and investment income dipped.
On an operating basis, Genworth earned 24 cents per share,
which was a cent below analysts' estimates, according to Thomson
Mortgage insurers cover losses when homeowners default and
foreclosures fail to recoup costs. Typically, coverage is
required when homeowners make a downpayment of less than 20
percent on a property.
MGIC reported its second straight quarterly profit earlier
Shares of Genworth, which has a market value of more than $7
billion, were down about 2 percent after the bell. They closed
at $14.57 on the New York Stock Exchange on Tuesday.