Genworth Financial Inc. reported a fourth-quarter 2017 adjusted operating income of $326 million, or 65 cents per share, compared to an adjusted operating loss of $137 million, or 27 cents per share, a year ago.
The company logged a net income available to stockholders of $353 million, or 70 cents per share, versus a net loss of $122 million, or 25 cents per share, in the fourth quarter of 2016.
The fourth-quarter figures benefited from net investment gains, net of taxes and other adjustments of $27 million. Net investment income was $812 million, compared with $786 million in the prior-year period.
Total revenues for the quarter were $1.69 billion, down from $2.20 billion in the year-ago period. Premiums were $622 million, down from $1.13 billion in the fourth quarter of 2016.
Genworth completed its annual review of GAAP active life margins and life insurance assumptions. GAAP loss recognition testing margins for the long-term care business were lowered to about $500 million to $1.0 billion as higher expected future claim costs were somewhat offset by the effect of higher future in-force rate actions.
The company recorded an after-tax charge of $74 million associated with its universal life products. The negative impact was mostly driven by assumption changes due to emerging mortality experience and adjustments from lower forward interest rates.
The U.S. life insurance division posted an adjusted operating loss of $69 million, compared with such a loss of $154 million a year earlier. The U.S. mortgage insurance business recorded adjusted operating income of $74 million, up from $61 million a year ago. The Canada mortgage business saw adjusted operating income of $43 million, compared with $39 million in the fourth quarter of 2016. The Australia mortgage insurance business posted adjusted operating loss of $125 million, down from an operated income of $14 million in the prior-year period. The company reported an adjusted operating income of $390 million for the corporate and other division, compared with a loss of $103 million in the year-ago quarter.
Book value per share as of Dec. 31, 2017, was $26.88, compared with $25.37 as of Dec. 31, 2016. Excluding accumulated other comprehensive income, book value per share was $20.82 as of Dec. 31, 2017, up slightly from $19.16 as of Dec. 31, 2016.
For the full year 2017, the company reported an adjusted operating income of $696 million, or $1.39 per share, compared with adjusted operating loss of $316 million, or 63 cents per share in 2016.
The net income available to common shareholders for 2017 was $817 million, or $1.63 per share, compared with a net loss of $227 million, or 56 cents per share, a year earlier.
