The Genworth Mortgage Insurance Australia’s (Genworth) share price went tumbling last week after the company reported an underlying net loss after tax of $104.3 million for the full year ending December 31, 2020 (FY20), compared to a $97 million net profit after tax in FY19. On Friday (February 12), the insurer’s share price fell by 5.65% to $2.67.
In its financial results for FY20, Genworth revealed an underwriting loss after tax of $234 million, compared to a net profit after tax of $42.1 million in FY19.
Genworth chief executive officer and managing director Pauline Blight-Johnston said Genworth's FY20 results took a hit from the COVID-19 pandemic's impact on the economy.
“While the business achieved strong toppling volume growth in gross written premium (GWP), our statutory and underlying net profit after tax (NPAT) losses were affected by an increase in reserving to reflect anticipated future claims outcomes arising from the economic impacts of COVID-19,” Blight-Johnston said, as reported by The Motley Fool.
“Importantly, Genworth remains in a strong capital position, able to withstand a wide range of future claims and outcomes.”
Genworth said it would not declare an interim or final dividend due to the uncertainty surrounding the coronavirus and the current economic environment. Its board is committed to resuming dividend payments when appropriate.
