Genworth Financial Inc. reported net earnings Friday from continuing operations for the first quarter of $322 million, or 65 cents per diluted share.
Net earnings from continuing operations in the first quarter of 2004 were $260 million, or 53 cents per diluted share, said the Richmond, Va., insurer that was partially spun off by General Electric last year. (GE remains a majority stockholder.) The unaudited pro forma 2004 operating results do not meet generally accepted accounting principles, the company said, but were presented to provide a basis for comparison.
Net operating earnings for this year's quarter were $326 million, or 66 cents a share, compared with pro forma net operating earnings of $244 million, or 50 cents a share, a year earlier.
The net operating earnings consist of net earnings from continuing operations and exclude after-tax net realized investment losses of $4 million in this year's first quarter. They included about $16 million, or 3 cents a share, of investment income related to bond calls, prepayments, recoveries, and partnership income.
Pro forma net operating earnings consist of pro forma net earnings from continuing operations excluding after-tax net realized investment gains of $10 million in the first quarter of 2004.
"We are pleased with solid results across all operating segments this quarter. Earnings in our mortgage insurance business were particularly favorable, primarily related to lower than anticipated domestic delinquencies and favorable foreign exchange," Michael D. Fraizer, the company's chairman and chief executive officer, said in a press release. Genworth will release further details April 28 and hold a conference call to discuss the results on April 29, he said.
Management said it believes the presentation of net operating earnings enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. In connection with the initial public offering completed last May 28, the company reorganized, making significant reinsurance, recapitalization, and separation transactions.
The pro forma financial information for 2004 reflects those transactions to enable a more meaningful comparison, the company said. It has prepared its financial information as if it had been in existence throughout all relevant periods.
