Genworth Financial Inc (NYSE:GNW) has Updated FY2017 Guidance and Finalized its Premium Earning Pattern

The stock of Genworth Financial Inc (NYSE:GNW) closed at $3.05 losing 5.57% in yesterday’s trading session. Genworth Mortgage Insurance Australia Limited (GMA) is one of the subsidiaries of Genworth Financial, Inc. One of the most recent developments by Genworth Mortgage is the finalization of a review of its earnings curve or premium earning pattern.

This announcement was made today by Genworth Financial which is looking forward to sharpens its competitive edge in the market. If everything goes according to plan, GMA hopes to witness immense success in line with being able to modify its premium earning pattern by the time it would be nearing concluding its review.

An analyst following closely on the company’s developments opined, “The aggregate, will lengthen the average duration of the period over which GMA recognizes its revenue, but it does not affect the total amount of revenue earned over time from premiums already written. GMA included in its press release the estimated impact of the modification on its fourth quarter financial results.”

Currently, Genworth is still undertaking a review of the financial effect of GMA’s modified earning pattern and of course that is in line with the consolidated financial statements falling under the U.S. generally accepted accounting principles.

The way in which Genworth usually treats GMA’s modified earnings pattern under U.S. GAAP sharply contrasts the treatment of GMA under the Australian GAAP. The expectation is that in the long run the financial impact to Genworth turns out to be conspicuously different from what GMA anticipates. By the fourth quarter of 2017 Genworth is confident that it will have succeeded in its efforts and will thus make the announcement regarding the results obtained.

For someone who never looks at Genworth critically, there is usually the temptation of thinking that things usually play out perfectly for the company. It is not the case according to one of the company’s top officials who was recently interviewed by several news reporters. He said that in their daily operations they came across numerous challenges but they are delighted that most of the times they came out better and even stronger.

 

Enter Email Here

START HERE: Get Your
FREE Report On This Stock

To reeive our FREE investing report and weekly alerts, enter your information below!

Your privacy is important to us. We’ll never share your information.

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of USmarketsDaily.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:

https://www.USmarketsDaily.com/disclaimer

 











 

John Eisler

John Eisler

John is a special projects and general assignment reporter, noted for breaking several exclusive stories.