(Bloomberg) — Genworth Financial Inc. posted its biggest intraday gain since 2009 after reporting a second-straight quarterly profit as Chief Executive Officer Tom McInerney reshapes the insurer to rebound from losses on long-term care coverage.
The insurer rose 74 cents, or 27 percent, to $3.49 at 9:37 a.m. in New York, narrowing its loss for the year to about 6 percent. Genworth reported Tuesday that net income in the three months ended June 30 was $172 million, compared with a loss of $193 million during the same period a year earlier. Operating profit, which excludes some investment results, was 25 cents a share, beating by 5 cents the average estimate of seven analysts surveyed by Bloomberg.
McInerney has been selling European units to help pay down debt after posting a $1.24 billion loss in 2014 on higher-than-expected costs for long-term care insurance, which pays for home health aides and nursing home stays. The company benefited in the second quarter from a gain on the sale of Treasury Inflation Protected Securities and improved results in the U.S. unit that backs home loans.