We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Genworth: Growth Prospects Bright, Low Interest Rates a Drag
Read MoreHide Full Article
On Jun 14, 2016, we issued an updated research report on Genworth Financial, Inc. (GNW - Free Report) .
The life insurer’s first-quarter 2016 earnings outperformed the Zacks Consensus Estimate but declined year over year. The company recorded lower revenues owing to a decline in premiums and policy fees as well as an increase in expenses during the first quarter. Moreover, the company stalled sales of traditional life insurance and fixed-annuity products in the first quarter.
Genworth remains focused on its mortgage insurance business and on the process of separating long-term care businesses. In addition, the life insurer is strategically making divestments to streamline its businesses. Such asset sales are expected to improve performance, enhance financial and strategic flexibility, strengthen mortgage insurance, increase excess capital, earnings and return on equity (ROE) and restructure the US Life business.
Also, the company intends to rationalize costs for annual cash savings. This apart, Genworth expects annualized cash expense reductions of $150 million or more by second-quarter 2016.
Solid performance by the mortgage division has boosted the company’s dividend receipts. For 2016, Genworth expects dividends between $100 million and $150 million. However, the company’s capital management efforts could raise dividend to $200 million in 2016. Dividends from Canada and Australia are projected between $100 million and $150 million in 2016.
However, exposure to a low interest rate environment has been weighing on the company’s investment results, which is not expected to show substantial improvement any time soon.
Zacks Rank and Stocks to Consider
Currently, Genworth carries a Zacks Rank #3 (Hold). Some better-ranked life insurers are Manulife Financial Corporation (MFC - Free Report) , Health Insurance Innovations, Inc. and GWG Holdings, Inc. . While both Manulife and Health Insurance Innovations sport a Zacks Rank #1 (Strong Buy), GWG Holdings holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Genworth: Growth Prospects Bright, Low Interest Rates a Drag
On Jun 14, 2016, we issued an updated research report on Genworth Financial, Inc. (GNW - Free Report) .
The life insurer’s first-quarter 2016 earnings outperformed the Zacks Consensus Estimate but declined year over year. The company recorded lower revenues owing to a decline in premiums and policy fees as well as an increase in expenses during the first quarter. Moreover, the company stalled sales of traditional life insurance and fixed-annuity products in the first quarter.
Genworth remains focused on its mortgage insurance business and on the process of separating long-term care businesses. In addition, the life insurer is strategically making divestments to streamline its businesses. Such asset sales are expected to improve performance, enhance financial and strategic flexibility, strengthen mortgage insurance, increase excess capital, earnings and return on equity (ROE) and restructure the US Life business.
Also, the company intends to rationalize costs for annual cash savings. This apart, Genworth expects annualized cash expense reductions of $150 million or more by second-quarter 2016.
Solid performance by the mortgage division has boosted the company’s dividend receipts. For 2016, Genworth expects dividends between $100 million and $150 million. However, the company’s capital management efforts could raise dividend to $200 million in 2016. Dividends from Canada and Australia are projected between $100 million and $150 million in 2016.
However, exposure to a low interest rate environment has been weighing on the company’s investment results, which is not expected to show substantial improvement any time soon.
Zacks Rank and Stocks to Consider
Currently, Genworth carries a Zacks Rank #3 (Hold). Some better-ranked life insurers are Manulife Financial Corporation (MFC - Free Report) , Health Insurance Innovations, Inc. and GWG Holdings, Inc. . While both Manulife and Health Insurance Innovations sport a Zacks Rank #1 (Strong Buy), GWG Holdings holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>