Genworth MI Canada Inc. reported fourth quarter 2013 net income of $93 million or $0.98 per diluted common share and net operating income of $85 million or $0.90 operating earnings per diluted common share.
In a release on February 4, the Company reported that while net operating income was lower by 4 percent as compared to the same quarter in the prior year on an adjusted basis, the Company delivered consistent operating earnings per share.
On a full year basis, the Company reported $349 million in total net operating income, as compared to $339 million on an adjusted basis for the prior year. Compared to the adjusted net operating income in the prior year, net operating income for 2013 represented a $10 million or 3 percent increase. Full year operating earnings per share were $3.60 as compared to $3.43 in the prior year, on an adjusted basis. This represents a 5 percent increase to the prior year. The Company also delivered an operating return on equity of 12 percent during the quarter and on a full year basis.
"We delivered strong performance in 2013," said Brian Hurley, Chairman and Chief Executive Officer of the Company. "We enhanced the customer experience, strengthened the quality of our insurance portfolio, and realized loss ratio improvement. We believe that we are well positioned for continued profitability."
With the implementation of the Protection of Residential Mortgage or Hypothecary Insurance Act (Canada) (PRMHIA) on January 1, 2013, reported net operating income for the fourth quarter and full year in 2012 was $226 million and $470 million, respectively. These reported values included a one-time favourable after-tax item of $137 million on a quarter basis and $122 million on a full year basis related to the reversal of previously accrued exit fees related to the federal government guarantee fund under the previous Government of Canada Guarantee Agreement, which was released with the implementation of PRMHIA. Adjusted net operating income of $89 million in the fourth quarter of 2012 and $339 million for the 2012 full year are being used for comparison purposes.
On November 29, 2013, the Company paid a quarterly dividend of $0.35 per common share.
The Company also announced that its Board of Directors approved a dividend payment of $0.35 per common share, payable on February 28, to shareholders of record at the close of business on February 14.
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