On 5 August 2015 Genworth Mortgage Insurance Australia (Genworth) released its 1H15 results with a 25% fall in net profit
Genworth Mortgage Insurance Australia (Genworth) reported a 25% fall in net profit after tax (NPAT) to $113.0m when it released its results on 5 August 2015. Whilst underlying NPAT was steady at $132.9m, an increase in mark-to-market investment losses drove the lower bottom line profit number.
We expect Genworth to call its 4.75% floating rate subordinated notes at first opportunity in June 2016 but expect continued negative news flow surrounding contract renewals and parent ownership in the near term.
Key figures from the results included:
- NPAT of $113.0m, down 25.4% from 1H14, driven by $19.9m of mark-to-market losses
- Underlying NPAT of $132.9m, unchanged from 1H14
- Gross Written Premium (GWP) of $285.4m, down 9.0% as the loss of the Westpac contract takes hold
- Closing delinquencies of 5,900, up 9.2% from 30 June 2014, represents a delinquency ratio of 0.40%
- Loss ratio of 22.1% up from 19.6% in 1H14
- Investment income of $51.2m which includes $28.4m of mark-to-market losses
- Cash and fixed interest investment portfolio of $4.1bn with 2.4 year duration
- Regulatory prescribed capital amount (PCA) solvency ratio of 1.64 times
- Interim dividend of 12.5c per share plus special dividend of 18.5c per share
For further details of the results see Genworth's 1H15 Earnings Release report or presentation.