Genworth Financial Inc (NYSE:GNW) Shares Advance 20% on Strong Q1 Earnings Report

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Genworth Financial Inc (NYSE:GNW) shares were up 20.10% to $3.43 on Friday on stronger than expected earnings data from the company.

Genworth Financial Inc (NYSE:GNW) stock prices jumped to a high of $3.48 before the end of trading last week after the company printed its latest earnings figures. Genworth operating earnings per share came in at $0.21, beating the consensus estimate of $0.13.

For some analysts, this is more than enough to erase doubts on the company’s troubled long-term care insurance business, which is being isolated from its life insurance and annuity business. This also eases the path for the company’s operational restructuring. Still, Genworth Financial Inc (NYSE:GNW) could have a long way to go before being able to access capital markets at reasonable rates.

On April 28, the company terminated a credit agreement dated as of September 26, 2013 without incurring any termination penalties. Earlier in the week, it was reported that Genworth Financial Inc (NYSE:GNW) has plans to sell its Main Street building in Lynchburg to Pacific Life Insurance Company.

This sale would be part of the agreement in which Pacific Life would buy Genworth’s new business capabilities for term life insurance. This involves the company’s new business information technology platform and intellectual property related to term life insurance. The Main Street building is an asset related to the sale of term life plans.

However, this does not involve the existing in-term portfolio of Genworth Financial Inc (NYSE:GNW) life insurance policies. This means that Genworth could continue to provide services related to these policies it sold prior to the agreement being signed.

Genworth Financial Inc (NYSE:GNW) is engaged in providing the insurance, retirement and home ownership needs of its customers. It operates through three main divisions: US life insurance, global mortgage insurance, and corporate and other.

 

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