Leading insurance company Genworth Financial (NYSE:GNW) reported impressive earnings results in its last-reported quarter. However, how will its failure to merge with China Oceanwide affect its prospects? Let’s find out.The stock of leading insurance company Genworth Financial, Inc. (GNW) has gained 104.3% over the past nine months to close yesterday’s trading session at $4.29. This can be attributed primarily to its increase in newly underwritten policies. And record low interest rates have spurred demand for its mortgage insurance, especially among first-home buyers.
However, the stock is currently trading 9.9% below its $4.76 52-week high. After years of uncertainty, this month the company terminated its merger agreement with China Oceanwide Holdings Group Co., Ltd.. GNW announced on May 4 that Genworth Mortgage Holdings has commenced an IPO and is expected to trade on the Nasdaq Global Select Market under the ticker symbol ‘ACT.’ The company is expected to be rebranded as Enact Holdings, Inc.
While the company’s underwriting performance is expected to improve this year due to a better employment and housing market outlook, analysts don’t expect GNW to report convincing revenues and earnings in the near term. So, the stock’s near-term prospects look uncertain.