Genworth Financial reports $109 million net loss for second quarter

From staff and wire reports
Published: July 30, 2008

RICHMOND — Genworth Financial this week reported a net loss of $109 million, or 25 cents per diluted share, for the second quarter of 2008.

Much of that loss was driven by investment losses and decreases in the mortgage insurance sector, fueled by high foreclosure rates.

In the second quarter of 2007, the company had net income of $379 million.

Before taxes, interest payments and investment losses, the company had income of $212 million in the second quarter of 2008.

Genworth’s life insurance division is headquartered in Lynchburg. Life insurance earnings increased 16 percent compared to the second quarter of 2007.

There were decreases in the company’s retirement income services and long-term care insurance.

The company maintained that it believes it will reach earnings of $2.25 per share by the end of the year.

“We continue to manage through a difficult environment in the U.S. housing and financial markets,” said Michael D. Fraizer, chairman and CEO. “We are actively mitigating risk in U.S. Mortgage Insurance as we build a strong 2008 book based on stringent guidelines and higher prices.”