WASHINGTON (dpa-AFX) - Genworth Financial Inc. (GNW) reported a fourth-quarter net loss to shareholders of $760 million or $1.53 per share, compared to profit of $208 million or $0.41 per share, prior year. The net operating loss for the fourth quarter of 2014 was $416 million, or $0.84 per share.
The company noted that its current quarter results included an after-tax GAAP charge of $478 million related to the LTC active life margin review of its blocks acquired before 1996.
The company's New York subsidiary had a preliminary incremental negative margin of $195 million. The company also recorded non-cash charges of $340 million after-tax reflecting the write off of remaining life insurance and LTC goodwill, as well as a tax charge related to a change in its permanent reinvestment assertion in Australia mortgage insurance and a tax benefit in connection with the plan to sell the lifestyle protection insurance business.
On average, eight analysts polled by Thomson Reuters expected the company to report a loss per share of $0.13 for the quarter. Analysts' estimates typically exclude special items.
Revenue increased to $2.42 billion from $2.41 billion last year. Analysts expected revenue of $2.41 billion for the quarter.
In response to current market realities, the company is embarking on a multistep restructuring plan targeting cash savings in excess of $100 million pre-tax over the next two years. In January, the company began the consolidation of its U.S. Life Insurance Division and corporate holding company functions, which resulted in the reduction of key leadership positions.
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