Genworth MI Canada reports Q1 profit
Genworth MI Canada earned a first-quarter profit of $84 million, up from a year ago, helped by an improved economy and housing market. The residential mortgage insurance company said the profit amounted to 71 cents compared with a profit of $74 million or 71 cents per diluted share a year ago.
“We delivered solid first quarter results, highlighting the success of our business model and the strengthening economy,” chairman and chief executive Brian Hurley said in a statement.
“Our proactive risk management approach was a key factor in lowering losses on claims resulting in a loss ratio within our target range.”
Genworth also announced that it has filed a preliminary short form base shelf prospectus that will allow it to raise up to $1.5 billion in debt, preferred or common shares, subscription receipts, warrants and units. The company said it was planning to add debt to its capital structure to take advantage of current favourable market conditions.
Genworth said the debt to total capital ratio is initially targeted at approximately 10 per cent. The company is also planning to return up to $350 million of its capital to shareholders during 2010.
