Genworth Reports Higher Earnings

Genworth Financial Inc. is posting stronger net earnings than it was a year ago, partly because of better results at its U.S. mortgage insurance unit, and partly because of better results at its long-term care insurance (LTCI) unit.

(Related: Genworth and China Oceanwide Push Deal Deadline Back)

The Richmond, Virginia-based company is reporting $230 million in net income for the first quarter on $2.2 billion in revenue, up from $165 million in net income on $2.1 billion in revenue for the first quarter of 2018.

The company has been trying for more than two years to arrange to be acquired by China Oceanwide Holdings Co. Ltd. of Beijing.

The companies have received all required approvals from U.S. regulators but are continuing to seek approvals from other regulators in other countries.

Genworth noted in its earnings release that it and China Oceanwide have postponed the deal completion deadline, in part because the companies are still waiting for approvals from regulators in Canada.

“The merger agreement extension allows us additional time to continue our pursuit of regulatory approval in Canada, which is taking additional time and involves the complexities associated with national security related issues including the safeguarding of our customers’ personally identifiable information,” Genworth President Tom McInerney said in a statement about the deadline extension.

Results by Unit

The company’s U.S. mortgage insurance unit is reporting $124 million in net income for the latest quarter on $223 million in revenue and $9.6 billion in new insurance written, up from $111 million in net income on $200 million in revenue and $9 billion in new insurance written for the first quarter of 2018.

The company’s LTCI unit is reporting $42 million in net income on $1.1 billion in revenue, compared with a $27 million net loss on $1 billion in revenue.

Net investment gains at the LTCI unit increased to $80 million, from $6 million.