On the whole
Genworth's overall net income fell to $82 million in the quarter from $178 million in the first quarter of 2010. Revenues improved slightly to $2.5 billion from $2.4 billion. But, in order to evaluate the company's overall performance in the quarter, we need to question the performance of all its three segments individually. Then, we'll have a much better understanding of what's going on here.
Genworth's retirement and protection segment's operating revenue grew 6% year-on-year, triggered by life sales and long term care insurance. The segment's earnings increased to $127 million compared with $122 million a year ago.
The company's international segment performed remarkably well as it witnessed an impressive 36% increase in its net operating income. Earnings and margins in lifestyle protection improved in Canada and Australia while flow new insurance written in Canada went up by 5% from the corresponding quarter last year.
Home on the range
Mortgage insurers are still feeling the heat of the U.S. housing crisis. And Genworth is no exception. Its U.S. mortgage insurance segment incurred an operating loss of $81 million in the quarter -- more than a two-fold increase from last year's loss of $36 million.
Several other mortgage insurers such as MGIC Investment
The Foolish bottom line
The improving credit scenario paints a good picture for Genworth's mortgage business and I expect greater things from the company. But, at this point in time, I would still reiterate my stance about being vigilant of this stock.