Genworth MI Canada Jumps as Volumes SurgeEric Lam
Genworth MI Canada Inc., a residential mortgage insurance provider, jumped the most in four months after reporting a surge in new business and a drop in its loan loss ratio that led to better-than-expected earnings.
Genworth rose 4 percent to C$24.63 in Toronto, the most since Sept. 14. The shares have risen 9.5 percent in the past 12 months.
The company, based in Oakville, Ontario, reported fourth-quarter profit of C$226 million compared with C$79 million a year ago, the company said in a statement. Adjusted earnings were 90 Canadian cents a share, compared with the average estimate of 78 cents according to 10 analysts surveyed by Bloomberg.
The loss ratio, which measures the difference between premiums paid to and claims settled by the company, dropped 8 percentage points to 31 percent compared with the year before.
Total new insurance written in the fourth quarter rose 37 percent to C$8.5 billion from C$6.2 billion a year ago, driven by higher volumes.
Genworth’s delinquency rate fell 6 basis points year-over-year to 0.14 percent.
“The delinquency rate continues to be positively influenced by improving economic conditions,” the company said in the statement.