Catalysts
Deal with China Oceanwide did not go through
Recently sold Australian business to focus on life insurance
Spinoff of PMI business into Enact
Genworth will still own 83% of Enact after the IPO, which is set to raise $497 million
Valuation of Enact will be about $3.85 billion, giving Genworth about $3 billion valuation
Enact currently has a book value of $3.95 billion
Rising demand for housing
Record Low Mortgage rate further increases demand for mortgages and consequently mortgage insurance
Asset price inflation - further increase in housing prices
Risks
Rising mortgage rates
Emerging Housing bubble
Financial Analysis
Revenues of $1.98 billion in 1Q21 vs $1.80 billion in 1Q20
Revenues of $8.65 billion in FY20 vs $8.09 billion in FY19
Premiums of $4.11 billion in FY20 vs $4.03 billion in FY19
Operating income of $168 million in 4Q20 vs $20 million in 1Q20
US PMI: $126 million in 1Q21 vs $95 million in 1Q20
US Life Insurance: $62 million in 1Q21 vs $7 operating loss in 1Q20
Net income of $195 million in 1Q21 vs net loss of $72 million in 1Q20
Net income of $178 million in FY20 vs net income of $343 million in FY19
US PMI:
NIW of $99.9 billion for FY20 vs $62.4 billion for FY19
Total Revenues of $1.10 billion for FY20 vs $978 million for FY19
Loss Ratio 35%
US Life Insurance:
Total revenues of $4.84 billion in FY20 vs $6.43 billion in FY19
Loss ratio of 65%
Assets of $98.5 billion, liabilities of $83.8 billion, and book value of $14.7 billion
Investments of $73.6 billion vs $77.9 billion in 4Q20
Yield of 4.84%
Almost all investment graded
Read the full analysis on my Research Partnership: https://ishfaaqpeerally.teachable.com/courses/662813/lectures/32196778
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