New Business, Delinquency Worse at Genworth M.I.

Feb. 07--Genworth Financial Inc.'s mortgage insurance unit saw increased income despite higher delinquency and losses at its parent. New business fell, but the book of business expanded.

In its fourth-quarter 2017 report, Genworth disclosed a $290 million loss from continuing operations before income taxes during the three months ended Dec. 31.

Losses at the Richmond, Virginia-based firm widened from $56 million in the final three months of 2016 and swung from a $286 million profit three months earlier.

But within just its U.S. mortgage insurance business, Genworth saw income increase to $117 million from $95 million a year prior and $113 million three months prior.

Genworth Mortgage Insurance wrote $10.200 billion in new insurance during the most-recent period. Business fell from $11.300 billion in the third quarter and $11.100 billion in the fourth-quarter 2016.

For all four quarters of last year, $38.900 billion in new insurance was written, less than $42.700 billion written during all of 2016.

Refinance share widened to 11 percent in the fourth-quarter 2017 from 9 percent the preceding quarter.

Primary insurance in force was $151.800 billion as of year-end 2017, more than $148.000 billion as of Sept. 30 and $137.500 billion as of Dec. 31, 2016.

Based on the number of loans insured, primary insurance in force grew to 742,094 loans from 730,174 units three months prior and 699,841 loans as of year-end 2016.

Delinquency worsened to 3.12 percent from 2.81 percent but was still lower than 3.67 percent at the end of the fourth-quarter 2016.

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