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Earnings roundup: Genworth Financial, Markel post YOY income gains in Q4'17

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Earnings roundup: Genworth Financial, Markel post YOY income gains in Q4'17

With earnings season in gear, S&P Global Market Intelligence presents a snapshot of recently reported financial results for companies in the insurance space.

Life and health

Genworth Financial Inc. reported fourth-quarter 2017 adjusted operating income of $326 million, or 65 cents per share, up from an adjusted operating loss of $137 million, or a loss of 27 cents per share, a year ago.

The company logged net income available to stockholders of $353 million, or 70 cents per share, versus a net loss of $122 million, or a loss of 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.

Managed care

Centene Corp. posted fourth-quarter 2017 adjusted net earnings from continuing operations of $173 million, or 97 cents per share, a decrease from $210 million, or $1.19 per share, in the year-ago period.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 93 cents.

Net earnings from continuing operations for the period were $230 million, or $1.30 per share, down from $255 million, or $1.45 per share, in the fourth quarter of 2016.

The company also updated its full-year 2018 guidance. Centene now projects that total revenues for the year will be $60.6 billion to $61.4 billion, up from the prior range of $60.0 billion to $60.8 billion. Centene now expects GAAP EPS to be between $5.91 and $6.25 for the year, compared with the prior range of $4.63 to $4.97.

Full-year 2018 adjusted EPS is now expected to be between $6.95 and $7.35, an increase from the previously expected range of $5.47 to $5.87.

The S&P Capital IQ consensus normalized EPS estimate for 2018 is $6.89.

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WellCare Health Plans Inc. reported fourth-quarter 2017 adjusted net income of $14.2 million, or 32 cents per share, compared with $46.0 million, or $1.03 per share, in the fourth quarter of 2016.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 21 cents.

Net income for the quarter was $60.7 million, or $1.34 per share, up from $44.9 million, or $1.00 per share, in the prior-year quarter.

The company's net income for the quarter included a noncash benefit of $56.1 million, or $1.25 per share, stemming from the company re-evaluating its net deferred tax liability as a result of the recently overhauled U.S. tax code.

For the full year 2018, WellCare Health now expects to see adjusted EPS of between $9.55 and $9.85, up from the prior guidance of $8.40 to $8.65.

The S&P Capital IQ consensus normalized EPS estimate for 2018 is $9.71.

Mortgage guaranty

Genworth MI Canada Inc. reported fourth-quarter 2017 net operating income of C$121 million, or C$1.33 per share, compared with C$105 million, or C$1.14 per share, in the year-ago quarter.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was C$1.19.

Net income was C$132 million, or C$1.45 per share, for the quarter, compared with C$140 million, or C$1.52 per share, in the prior-year period.

Multiline

Horace Mann Educators Corp. reported fourth-quarter 2017 core earnings of $27.2 million, or 65 cents per share, compared with $21.4 million, or 52 cents per share, in the prior-year quarter.

Net income for the quarter was $125.3 million, or $3.00 per share, up from $19.9 million, or 48 cents per share, in the fourth quarter of 2016.

The company said its net income included a one-time benefit of $99.0 million, or $2.37 per share, from the recently overhauled U.S. tax code.

For the full year 2018, the company projects it will see core earnings per share of $2.10 to $2.30.

Property and casualty

Markel Corp. posted comprehensive income to shareholders of $629.2 million for the fourth quarter of 2017, compared with a comprehensive loss to shareholders of $29.1 million in the prior-year period.

The company reported net income per share of $30.39 for the quarter, up from $9.11 per share in the fourth quarter of 2016.

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Intact Financial Corp. reported fourth-quarter 2017 net operating income of C$236 million, or C$1.63 per share, up from C$212 million, or C$1.58 per share, in the fourth quarter of 2016.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was C$1.73.

Net income for the quarter was C$232 million, or C$1.60 per share, compared with C$171 million, or C$1.27 per share, in the year-ago period.