Genworth Financial Bouncing Back Despite High Payout Demands

Genworth Financial, a US-based mortgage insurance company, slowly bounces back in the Australian stock market.

The company, however, is still dealing with high demands of payouts, which has forced it to shelve stock market listings last March.

Its latest accounts showed promise as Genworth had a $US44 million profit in the quarter ending last June. Sales also rose to eight percent, which helped many of its borrowers even as high claims are still affecting the company’s overall profits.

Experts say that Genworth is probably paying out a little under $1 for every $2 sales it meets at the stocks.

The worldwide operations of Genworth, meanwhile, are doing well. Its US-based office has recently posted a $US76 million gain, bouncing back after a loss last year.

Genworth refuses to discuss what went on with the payout demands last March.

But according to some experts, its exposure in Queensland’s tourism hot spots has caused the company this misstep. Other mortgage companies were too careful with this, deciding to take a more aggressive stance against Queensland exposures to prevent risks.

The company is said to be the largest mortgage insurance business in the country. Last year, it reported a $250.9 million profit in its operations.