Mortgage insurer Genworth MI Canada posted a net income of $116 million in the second quarter of 2018, down by $34 million year-on-year due to lower total net investment income, as well as higher losses on claims and higher expenses. Its new insurance clocked in at $4.8 billion, 5% lower compared to the amount it earned in the same quarter a year earlier.
"We continue to see strong operating results this year, with another low loss ratio of 14% for the quarter," said President and CEO Stuart Levings.
Levings highlighted that the results were favorably affected by the supportive macroeconomic environment and stable housing market.
Reflecting on their successful efforts in mitigating missed payments, the insurer’s outstanding delinquencies of 1,742 decreased by 67 delinquencies, as compared to the same quarter in 2017.The declines were monitored in Quebec (78), the Pacific region (53), and Alberta (41).
When compared to the previous quarter though, the number of delinquencies outstanding rose by 19 delinquencies, primarily due to an increase in Alberta.
Finally, new delinquencies (excluding cures) peaked at 360, up by 205 when compared to the second quarter of 2017 – primarily due to increases in Ontario (71), Alberta (42), Quebec (41), the Atlantic region (41) and the Prairies region (17).
Compared to the prior quarter, new delinquencies, net of cures, dropped by 5 primarily because of falls in the Atlantic region (11) and the Prairies region (13), which were partially offset by an increase in Alberta (22).
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