Financial Stocks Finishing in Green Following Earnings Reports
Genworth Financial Inc. (NYSE:GNW) reported its results for the fourth quarter. Reported a profit of $107 million (22 cents per diluted share) in the quarter. The life insurance company had a net loss of $161 million or a loss of 33 cents per share in the year earlier quarter. Revenue was $2.6 billion last quarter. Genworth Financial Inc. beat the mean analyst estimate of 18 cents per share. Analysts were expecting revenue of $2.58 billion.
“For Genworth, 2011 was a year of repositioning actions to move the company to move through an uncertain environment and provide a foundation for improved shareholder value. We made progress in several areas and will maintain an intense execution focus during 2012. At business portfolio and product line levels, we took important steps to improve our focus, strengthen risk buffers and capital generation, and support future redeployment of capital,” said Michael D. Fraizer, chairman and chief executive officer. “Actions completed or that we continue to pursue include, the planned minority IPO of Australia Mortgage Insurance, shifting new business mix and volumes, selling or exiting non-strategic lines and blocks of business, further streamlining our cost base, and adding to our holding company capital flexibility. Fourth quarter earnings improved from the prior year driven by U.S. Life Insurance and U.S. Mortgage Insurance (U.S. MI) results. International platform capital generation remained strong.”
Competitors to Watch: CNO Financial Group, Inc. (NYSE:CNO), American National Insurance Co. (NASDAQ:ANAT), AEGON N.V. (NYSE:AEG), MetLife, Inc. (NYSE:MET), Atlantic American Corp. (NASDAQ:AAME), Torchmark Corporation (NYSE:TMK), StanCorp Financial Group, Inc. (NYSE:SFG), American Insurance Group (NYSE:AIG), Prudential Financial, Inc. (NYSE:PRU), and Lincoln National Corp. (NYSE:LNC).
Principal Financial Group Inc. (NYSE:PFG) reported its results for the fourth quarter. Net income for the asset management company fell to $164 million (54 cents per share) vs. $199.3 million (62 cents per share) a year earlier. This is a decline of 17.7% from the year earlier quarter. Revenue fell 0.2% to $2.1 billion from the year earlier quarter. Principal Financial Group Inc. fell short of the mean analyst estimate of 75 cents per share. Analysts were expecting revenue of $2.1 billion.
“In 2011 we delivered solid operating earnings despite market challenges during the year. We again benefitted from business and geographic diversification with Principal International, Principal Global Investors and U.S. Insurance Solutions each delivering double-digit earnings growth for the year. The Retirement and Investor Service Accumulation2 businesses, which are directly impacted by the pace of the economic recovery, continue to show improvement with impressive sales growth and improved net cash flows,” said Larry D. Zimpleman, chairman, president and chief executive officer of Principal Financial Group, Inc. “I am more confident today than ever that The Principal is positioned for long-term growth with the right business mix and the right global footprint.”
Competitors to Watch: Unum Group (NYSE:UNM), AFLAC Incorporated (NYSE:AFL), American Independence Corp. (NASDAQ:AMIC), CIGNA Corporation (NYSE:CI), WellPoint, Inc. (NYSE:WLP), Universal American Corp. (NYSE:UAM), Humana Inc. (NYSE:HUM), HealthMarkets, Inc. (NYSE:UCI), American Insurance Group (NYSE:AIG) and Triple-S Management Corp. (NYSE:GTS).
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