Genworth Canada second-quarter profit slips five per cent to $110 million

TORONTO – Genworth MI Canada Inc. says its net income slipped five per cent to $110 million in the second quarter.

The company, which says it is the largest private residential mortgage insurer in the country, earned $1.26 per diluted share for the three months ended June 30, compared with $1.29 per share or $116 million a year earlier.

Genworth attributed the decrease to losses from derivatives and foreign exchange, lower premiums earned, and modestly higher losses on claims.

Net operating income increased $3 million to $120 million.

New insurance written from transactional insurance increased 12 per cent to $5.3 billion primarily due to increased housing market activity. Corresponding premiums increased by the same proportion to $187 million.

The loss ratio, as a percentage of premiums earned, grew one per cent from a year ago to 15 per cent while losses on claims increased by $1 million to reach $26 million.

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