Kelly L. Groh
results our our capital Tom, and XXXX Thanks, work and morning, after redeeming Oceanwide, quarter second and key drivers, updates our May maturity company good some I plan with context will fully cash around towards cover at provide debt the Today, we finalization. holding everyone. around as our
We financial quarter's of million reported the and net income this $XXX with for operating income adjusted quarter begin Let's million. of performance. $XXX
businesses. last reflect Mortgage in strong and Insurance Our overall to U.S. results our performance continue Canadian very
Our U.S. long Life business results from care insurance and improved performance modest improvement last insurance strong life Insurance significant our continued overall improvement in results quarter in with annuity term were and fixed income.
continue rates which Jobs results to Act, from and rate. overall the Tax tax our XXXX Cuts from overall Our lowered lower effective tax benefit
minutes. negative tax law a As evaluate developments we valuation being positions the tax million of adjustment are to deferred refined, a to interpretations the $XX taxes. and calculations and benefits and few the I'll our our in foreign enacted did record of discuss continue
loss the over solid prior are favorable sustainable performance a businesses MI, in update $XX was million very our as all unemployment with Mortgage the year. our last our a and U.S. fundamentals. we the ratio second Moving reflecting for last growth, months, XXXX. reserve quarter, underwriting favorable to of we've XX severity reported low XX points developments was levels steady have results reserve loss across a the of the prior regions. of second of the quarter and did backdrop was from is saw quarter We in down our after frequency factor strong housing after-tax determining U.S. result in points This trends update from trends factor of and the X%, which most economic Insurance XX negative quarter housing In seen
excluding and loss strong performance. have factor favorably X%, compares periods new quarter with update lower been reserve second continued The to delinquencies cure prior aging favorable this ratio would which and
versus year's have rate from to cure which last remains and continue refinancing driven reduce consistent the lapses. Persistency we rate. business, losses in U.S. earnings interest $XX did We continue believe reserved. the to with by delinquencies our what U.S. In hurricanes these year's last tax MI incremental quarter elevated lower rates, approximately track million reflecting higher the improve
to U.S. tax of reform we in fundamentals U.S. the benefits anticipate in earnings our the XXXX housing continue market the results. and macroeconomic to exceed strong underlying our Given continue, MI assuming
although, from partially was by refinancings. versus by partially year a billion $XX.X originations. up New also larger Insurance Written refinancing or purchase purchase prior offset market; XX% a up primarily seasonally NIW market origination origination lower larger NIW sequentially the XX% from lower was offset
Our mix the the sequentially our of year participation as declined well as in singles due market. prior selective continued to versus
continue customer transaction lower the uncertainty recently with share than some competitors, monitor We concentration. Oceanwide to market given our our ratings our increased and
levels service overall versus although of expect served that this some to period. we pleased are We pressure mitigate do lower product and our the market strong modestly to our be differentiated share capital and have offerings prior
$X a tax effective prior and to performance earnings first in corporate in fundamentals, continued territorial increased prior to businesses from half down versus XXXX, origination expectations tax year Alberta. of reflecting the the has reflects million new now on business in actual loss the rate. year prior rate performance XX% smaller the changes of segment made market, Canada, to XX% although, some loss of of larger Flow recent changes. to the the strong expectations tax increase approximately XX%. Canada from NIW their to business by with we by for approximately points ratio X% The from to a Canadian share modest ratio market of was XX% Genworth's and XX% XX% the remainder benefited Canada's range net versus quarter X of increased reform the primarily the due XX% Canada more strong driven expect a year as closely Turning seasonally U.S. full-year of cures, the regulatory loss the origination Based a sequentially delinquencies, in revised
versus a non-reinsurance versus versus and Losses premiums. Australia, and were been the by points in quarter in Moving that adjusted compared of portion quarter was $X discharged. prior an XX%, promptly of income up pre-tax This by the loans in identify more million prior year points quarter. the mostly $X initiative operating XXXX. to policy GMA modestly quarter cancellations to X earned year result to higher loss the down prior flat as a prior ratio from the X the total million recovery driven sequentially Premiums Genworth's have higher impacted XQ, were up recorded due positively benefit to the approximately
a which is cumulative Australia, GAAP versus curve business resulting As earnings in our reserve of treatment review than earnings of in adjusted a Australia accounting. that when pattern in unearned premiums, fourth reminder, curve This U.S. GAAP The business in Australia metrics of the adjustment applied completed different results XXXX for a earnings was differences retrospectively earnings its the and premium earned in locally. the U.S. the loss quarter IFRS premium adjustment retrospectively. the ratio reports prospectively of
on continued due levels size and in market year regulatory business certain prior down penetration to and XX% standards, from focused up lenders quarter the versus prior as lower New Flow market versus seasonally serviceability. changes origination Australia larger investment XX% from lending as the Our lending well were
half terminations utilizing benefits first expected. benefit than daily in Securities partially claims Moving policyholders higher second is higher more Treasury experience. results we partnerships benefit from businesses. our claim variable quarter insurance Inflation our we Insurance aggregate, which and being annuity unfavorable generally block is their did long that seasonally overall investment in TIPS. or Protected of segment, the higher LTC particularly benefit reflected income and elevated benefited being are of earnings payments limited This our from In utilization experience U.S. business, mortality, care from favorable acquired the term to our muted see year by The in Life resulting and higher by the driven
We as claims continue elevated utilization develop. to continue monitor to the benefit levels
higher on the growing claim population from reflected and see Additionally, block were LTC new frequency sequentially claim Earnings as with the larger favorable experience reserves we the business new growth claims prior of blocks per higher acquired the from our termination quarterly is seeing coming quarter. new daily benefits. as claim up seasonably results our in a mix and average true-up
claims termination expected We LTC of claims quarterly of and of favorable claims for will likely their expect as age. impact pressured utilization The benefits utilization be daily new using claim more trends, less results than policyholders remainder previously blocks reserves. development the by rates, to XXXX the benefit to continue
work work and other the fourth the as any third to impact Accordingly, complete on plan well in the finalized. of yet as However, we on until have the or not is we this will assumptions assumption not is quarter. an work finish this claims reserves estimate
We have continue actuarially pressure. rate plan very mitigate to These been most to good and in approving ours in used assumptions last justified results multiyear with and of have testing seen a focus force our been line be action in will this have margin action year's rate approvals on regulators requests. margin our help
also as lapses entering premium impacted of life acquisition later to plan premiums although updates any Universal associated did term XX-year done their annual Turning be primarily life UL higher year, see Life we post-level results costs. in have to we modest from life experience to which with develops. and Insurance. The Life required on term accelerated an deferred life be to insurance assumption this continues amortization basis We unfavorable improvement term business in large as continues and lower review mortality. and XX-year mortality periods, term blocks
interest their We after-tax we versus million loss investment year during larger quarter trend XXXX, mainly income, our $XX improved year a In the sequentially, XXXX, in lower shock then policy was remainder to per reduce favorable charge to the variable more tax saw annuities and XQ the which recognition XXXXs, in mortality. XX the the mortality, prior with favorable and end fixed to year favorable Results lower during late the earnings less as offset of $X period. in products single-premium by written premium the to expect were $X reached immediate reflecting after-tax non-recurrence XXXX rate approximately from this partially reduce blocks continue further of annuity million level of related rates. results a
and Our segment further refined. foreign calculations of periods the $XX deferred taxes to to under law the Corporate loss million due in tax the prior for than interpretations as reform higher was Other related expense and mainly are tax
the minimize tax Canada certain law local was to intend tax in drafted, above make to over now rates taxes how and in the statutory we elections additional Given and order Australia.
subsidiaries be deferred tax these and the our of views As positions, we we revaluing are will our to our a what liabilities of on ultimate result on views on assets our these taxation foreign align with believe subsidiaries.
hurricanes strong assets partially of U.S. where to very Now, positions. to I'll maintain driven move capital reduced million continue ratio of at cash quarter from levels above or solid from second flows levels, the In a those our XXX% cure Mortgage points quarter quarter. primarily perform required end X positive first of Insurance up million to capital points from improvement higher our written This ratio was XXX% second X quarter of with the as during the businesses delinquencies rate XXX% the this end in and quarter and we from required of performance to expected. The $XXX by of sufficiency year's finished from and last new MI, payment incremental dividend quarter excess continue PMIER sufficiency last strong $XX PMIER by XXXX. business the declined a impact at as the insurance assets
first based managing of remain expecting PMIERs effective If compliance have in this, We capital in confidential early continue estimate are believe new XQ. will we'll Institutions, a operating minimum market and quarter or buffer. received our although standards lower term of XXX% with saw than standards. to quarter, in of in prudent on level we to the capital proposed are an of business, XXXX above the Canadian to are the be standards framework publish the to the near update could standards, with as In as the drafted, of significantly MCT the GSE management the these capital range current the Office the XXXX compliance continues company's XXX% a manage our at Superintendent standards considering would we ratio we updates after or first GSEs we XXX% of remain MI In quarter a target we as PMIER Financial the adopted we released. from guidelines the draft in the which are capital We to OSFI, Canada estimated
amount above Our Australia target estimated which of XXX%, business is capital an ratio our XXX%. the of prescribed ended MI the quarter of with range XXX% to capital management high-end
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redeeming last from quarter's we million. and holding approximately debt $XXX maturity $X.X assets with million billion $XXX the Moving XXXX May to the quarter ended fully after down the of liquid company, cash of
holding quarter to $XX this proceeds net other were million. a to million sources. were net small inflow payments dividends Offsetting of of share in from and from the the and addition million $X total repurchases company tax intercompany During $XX interest
million excess target. June payment noteworthy level the $XXX that debt of of I improving our cash next financial MI's path approximately forward not the million flexibility. is ending in external our was debt in is XXXX. Our until service company maturity holding will $XX dividend remind of X times investors U.S.
We XXXX will from another in once sometime of levels and any cash factors, continue don't finalized. to dividend but anticipate monitor U.S. PMIER's until MI considering other after X.X impacts our
that I last mention that as with transition, $X.X quarter. we capital plan to want let's Oceanwide Now, do investment announced billion
discussed, are Genworth. with investment details on capital of where billion Tom Oceanwide the to contribute will working we As plan $X.X Oceanwide
We have be after and agreed contributed over final XXXX. future in the used due closing amounts by plan Genworth's March retire The condition to XXXX and that Genworth's time, capital in will may this capital XX, will or $X.X billion of come improve financial be opportunities. debt growth further XXXX to of with the for
coming MI of We another which from, that now last public dividend the also Life pursuing U.S. our the GLIC. in to input Life sources equation. are also life I capital we three longer this Company, quarter, annuity U.S. into our entities GLAIC online regarding statements unstacking have want no is Insurance company Genworth with our now important quarter reiterate and
basis, extract no As capital. do we plans plan entities U.S. nor the overall intend current infuse Oceanwide, Life have businesses manage a we to we standalone capital these with to evaluate expect the in to as capital we on
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including strategic U.S. business remain our we While that, business. intended Life With and questions. rate it challenged, let's be focused to other LTC action our open up improve to the continues on plan actions for progress this operational
