Genworth Jumps as Mortgage Business Improves

Insurer Genworth (GNW) is trading 14% higher today despite missing expectations after the company said its mortgage business was improving.

Genworth posted 17 cents of operating EPS, two cents below analysts’ expectations. Revenue of $2.6 billion met analysts’ expectations. Losses narrowed in the U.S. mortgage division, which has been a very poor performer in recent quarters. In the fourth quarter, the division posted a $94 million loss, versus a $352 million loss a year before. Loan delinquencies have fallen, and the company has been able to grow its mortgage business.

“When you think about our overall loss mitigation efforts, we have through this cycle been focused on number one, what was coming through in the delinquencies and investigating those and making sure loans were properly underwritten. So that’s sort of worked itself through the system,” said Senior VP Kevin Schneider on the company’s conference call.