Genworth (ASX:GMA) announces AU$100M buyback; how shares are faring

August 03, 2022 01:33 PM AEST | By Ashish

Genworth (ASX:GMA) announces AU$100M buyback; how shares are faring — Image source: © nespix | Megapixl.com

Highlights

Genworth Mortgage Insurance Australia announced an on-market share buyback of AU$100 million.

The company reported statutory net profit after tax (NPAT) stood at AU$18.9 million.

Underlying NPAT stood at AU$134.3 million.

Genworth Mortgage Insurance Australia Ltd (ASX:GMA) on Wednesday announced an on-market share buyback of AU$100 million. The buyback would represent 9.2% of the firm’s issued share capital or nearly 34.7 million shares.

Genworth, which is a provider of lenders mortgage insurance (LMI), had received the nod for shareholders to buy back up to 60 million shares at the annual general meeting (AGM) held this year.

Meanwhile, the ASX-listed firm reported statutory net profit after tax (NPAT) stood at AU$18.9 million. On the other hand, the underlying NPAT was AU$134.3 million. “Statutory NPAT was materially lower than Underlying NPAT as a result of unrealised mark to market investment losses of $162.1 million,” Genworth said in its financial results for the half year ended 30 June 2022 (1H22).

The board of the Australian firm also announced a fully franked interim ordinary dividend of 12 cents per share. The dividend would be paid on 31 August 2022.

What did the company say?

Genworth Chief Executive Officer and Managing Director, Ms. Pauline Blight-Johnston, said, “We are pleased to be delivering another strong underlying financial performance, and that Genworth remains well positioned to continue to support Australians through the changing economic environment ahead.

“Underlying NPAT was well up on the prior period, driven by a strong underwriting result due to higher-earned premium and negative net claims incurred. Whilst rising bond yields have caused the short-term mark to market investment losses, increased bond yields are positive for future profitability,” added Johnson.

Outlook and FY22 guidance

Genworth expects gross written premium (GWP) for FY22 to remain below the 2021 levels on account of the slowing of fresh loan commitments. The company also expects the net earned premium to be in the range of AU$375 million to AU$435 million, up from the previous guidance range of AU$315 million to AU$375 million provided in the financial year 2021.

How are Genworth shares performing today?

By 12:15 PM (AEST), shares of Genworth were trading at AU$2.88, down 0.0050 points, or 0.17%. The share price has risen over 19% on a year-to-date (YTD) basis. In the past 12 months, the stock is up nearly 36%. In the past month, the stock has risen nearly 22%. The 52-week high and low of the stock stands at AU$3.19 and AU$2.02, respectively.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.