Its total net income growth was even more impressive, growing by almost 80%, from $103 million in the first quarter of last year to $184 million in the first quarter of this year. However this was largely the result of almost $50 million in losses on investments and discontinued operations realized in the first quarter of 2013, versus a loss of just $10 million in the most recent quarter.
Genworth saw gains in income across its three major lines of business. Its life and long-term care insurance arm saw income rise from $85 million to $94 million. Its global international mortgage insurance unit had income rise 22% from $81 million to $99 million. It also saw impressive growth in its mortgage insurance operations in the U.S., where income rose by $12 million, or nearly 60%, to $33 million.
In total, revenue at Genworth was up by 1% to $2.3 billion. However it did see a significant decline in its operating expenses, which fell by 13%, or $55 million. It total expenses fell by $50 million, or 2% to $2.1 billion.
"Genworth's first quarter 2014 results reflect continued progress in our turnaround strategy," noted the President and CEO of Genworth, Tom McInerney, in the earnings announcement. "Our mortgage insurance businesses benefited from improved loss ratios, and long term care premium increases continued to positively impact earnings in our U.S. Life Insurance Division."
Genworth highlighted it still plans to sell up to 40% of its mortgage insurance arm in Australia. It anticipates this will be done within the first six months of this year. However it did note the timing of the IPO, "is subject to market conditions and valuation considerations, including business performance."
As a result of the improvements over the last year, Genworth's book value stands at $24.25 per share, up 5% from the $23.11 posted in the first quarter of 2013.