Genworth Financial Shares Surge as AIG Drops After Earnings Reports

Genworth Financial Inc. (NYSE:GNW) reported a lower net income in the third quarter compared with a year earlier, falling below analysts’ estimates. Net income for Genworth Financial Inc. fell to $29 million (6 cents per share) vs. $83 million (17 cents per share) a year earlier. This is a decline of 65.1% from the year earlier quarter.  Revenue was $2.52 billion last quarter. GNW fell short of the mean analyst estimate of 20 cents per share. It fell short of the average revenue estimate of $2.63 billion.

“Third quarter reported earnings reflected improvement in Retirement and Protection and consistent overall international performance, excluding tax items,” said Michael D. Fraizer, chairman and chief executive officer. “U.S. Mortgage Insurance losses declined due to good loss mitigation results, stability in the aging of loan delinquencies and higher levels of profitable new business. International capital generation remained strong while revenues slowed reflecting smaller origination markets. We continue to pursue and accelerate value-enhancing strategies to redeploy and optimize capital while maintaining appropriate risk buffers, including strategic management of new business levels and our plan to pursue a minority share IPO of our Australian mortgage insurance business.”

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), Penn Treaty American Corp. (PTYA), Prudential Financial, Inc. (NYSE:PRU), and Lincoln National Corp. (NYSE:LNC).

American International Group Inc (NYSE:AIG) reported its results for the third quarter. Loss widened to $4.11 billion ($2.16 per diluted share) from $2.52 billion (loss of $18.53 per share) in the same quarter a year earlier. AIG fell short of the mean analyst estimate of a loss of 8 cents per share.

“AIG continues to navigate a challenging global economic environment, and our results for the quarter were adversely affected by equity market declines, widening credit spreads, and declining interest rates, as well as property catastrophe losses,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We also took significant impairments at ILFC, reflecting management’s decision on certain aircraft that would be disposed of prior to the end of their previously estimated life in light of technological developments in the aircraft industry, fleet management announcements by certain airlines, and our newly acquired part-out company.”

Competitors to Watch: Hartford Financial Services (NYSE:HIG), HCC Insurance Hldgs., Inc. (NYSE:HCC), American Financial Group (NYSE:AFG), ACE Limited (NYSE:ACE), The Chubb Corporation (NYSE:CB), The Travelers Companies, Inc. (NYSE:TRV), White Mountains Insurance Group, Ltd. (NYSE:WTM), CNA Financial Corporation (NYSE:CNA), and Loews Corporation (NYSE:L).