Net operating income for the current quarter period fell by 58% to $31m, or $0.06 per diluted share, including a loss of $41m from the life block sale transaction, compared to a net operating income of $75m, or $0.15 per diluted share, during the same period a year ago.
Genworth Financial acting chief executive officer Martin Klein said that the company is very disappointed about performance of our Australia MI business this quarter and its impact on the timing of the minority IPO.
"The completed life block sale transaction, the sale of Genworth Financial Investment Services, and a $100 million life company dividend payment in April for a portion of the Medicare supplement sale proceeds are all important steps as we rebuild value," Klein said.
For the quarter ended on 31 March 2012, its net investment gains, net of tax and other adjustments, summed up to $16m against net investment losses of $16m during the same quarter in 2011.
Insurance and Wealth Management division earnings stood at $81m versus earnings of $127m during the corresponding quarter last year, driven by US Life Insurance results.
US life insurance segment earnings grew to $105m, excluding the impact of the life block sale transaction, from $92m in previous year same quarter while its Wealth Management Segment earnings were $12m, compared to $10m in the prior year first quarter.
For the current quarter, its global mortgage insurance division sustained a net operating loss of $36m, versus a net operating income of $16m during the same period last fiscal.
International Mortgage Insurance segment operating earnings were $7 million, compared with $99 million a year ago, from the current quarter reserve strengthening in Australia.
