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  • Writer's pictureIshfaaq Peerally

Genworth Financial 4Q20 Earnings Analysis


Genworth Financial Stock Analysis

Catalysts

  • Spinoff of PMI business

  • Merger with China Oceanwide - arbitrage opportunity

  • Rising demand for housing

  • Record Low Mortgage rate further increases demand for mortgages and consequently mortgage insurance

  • Asset price inflation - further increase in housing prices

Financial Analysis

  • Revenues of $2.26 billion in 4Q20 vs $2.03 billion in 4Q19

  • Revenues of $8.65 billion in FY20 vs $8.09 billion in FY19

  • Premiums of $4.11 billion in FY20 vs $4.03 billion in FY19

  • Operating income of $173 million in 4Q20 vs $24 million in 4Q19

    • US PMI: $95 million in 4Q20 vs $160 million in 4Q19

    • US Life Insurance: $129 million in 4Q20 vs $115 operating loss in 4Q19

  • Net income of $267 million in 4Q20 vs net loss of $17 million in 4Q19

  • Net income of $178 million in FY20 vs net income of $343 million in FY19

  • US PMI:

    • NIW of $99.9 billion for FY20 vs $62.4 billion for FY19

    • Total Revenues of $1.10 billion for FY20 vs $978 million for FY19

    • Loss Ratio 35%

  • US Life Insurance:

    • Total revenues of $4.84 billion in FY20 vs $6.43 billion in FY19

    • Loss ratio of 65%

  • Assets of $105 billion, liabilities of $89.9 billion and book value of $15.8 billion

  • Investments of $80.5 billion vs $75.2 billion in 4Q19

    • Yield of 4.96%

    • Almost all investment graded with 14% AAA

Genworth Financial Stock Analysis
Genworth Financial Stock Analysis

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