Thomas McInerney,, president and chief executive officer of Genworth Financial Inc., listens to a question during a Bloomberg Television interview in New York, U.S., on Friday, June 27, 2014. Thomas McInerney (Photo: Victor J. Blue/BB)

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.

The life insurance unit earned $5 million on $372 million in revenue, compared with $3 million on $372 million in revenue for the year-earlier quarter.

The fixed annuities unit earned $13 million on $159 million in revenue, down from $26 million on $182 million in revenue for the year-earlier quarter.

Taxes

The LTCI unit is the only major Genworth life and health unit with income taxes that increased. It accumulated $19 million in income tax obligations in the first quarter. For the first quarter of 2018, the company was expecting to get about $1 million back on its income taxes.

Risk-Based Capital

An insurer’s risk-based capital ratio, or RBC ratio, is a rough measure of the amount of resources a company has to meet its obligations.

Genworth says the consolidated RBC ratio at its U.S. life insurance companies fell to 195% during the quarter. That was down from 199% in the fourth quarter of 2018, and down from 279% in the first quarter of 2018.

Resources

Links to Genworth’s latest earnings release and financial supplement are available here.

Information about how to listen to the Genworth conference call is available here.

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