Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
The independent financial analyst theScreener just lowered the general evaluation of GENWORTH MGE.IN.AUS. (AU), active in the Property & Casualty Insurance industry. As regards its fundamental valuation, the title still shows 2 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Slightly Negative. As of the analysis date June 29, ...
Stronger investment markets helped no-moat Genworth generate impressive first-quarter 2019 earnings. Statutory net profit after tax, or NPAT, was materially higher at AUD 47.8 million, compared with AUD 8.4 million in first-quarter 2018. An unrealised gain of AUD 25.5 million on its investment portfolio was the primary driver of the big jump in earnings. Underlying NPAT was also higher but by a more moderate, albeit still impressive, 12.1% to AUD 22.3 million. Underlying NPAT also benefited from...
Genworth is Australia's largest lenders mortgage insurer, with about 30% market share. Banks typically use LMI on home loans with loan/value ratios over 80% to manage default risk. The insurer is a high-risk play on Australia’s housing market, given its exposure to the riskiest housing loans. The U.S. housing crash illustrates the leverage of LMI to a severe economic downturn. We expect Genworth to face increasing earnings pressure from lower new business volumes and higher delinquencies, but ...
Stronger investment markets helped no-moat Genworth generate impressive first-quarter 2019 earnings. Statutory net profit after tax, or NPAT, was materially higher at AUD 47.8 million, compared with AUD 8.4 million in first-quarter 2018. An unrealised gain of AUD 25.5 million on its investment portfolio was the primary driver of the big jump in earnings. Underlying NPAT was also higher but by a more moderate, albeit still impressive, 12.1% to AUD 22.3 million. Underlying NPAT also benefited from...
A change in analyst leads to a downgrade to no-moat Genworth’s fair value estimate to AUD 2.55 per share from AUD 2.70. The reduction is prompted by our expectation the recent downturn in the Australian economy, including the systemwide fall in home loan growth to 4.9% in 2018 from 6.8% in 2017 and declining Australian home prices will persist over the near term. This is likely to reduce the level of new insurance written and increase claims. The deterioration in the economy could also lead to...
A change in analyst leads to a downgrade to no-moat Genworth’s fair value estimate to AUD 2.55 per share from AUD 2.70. The reduction is prompted by our expectation the recent downturn in the Australian economy, including the systemwide fall in home loan growth to 4.9% in 2018 from 6.8% in 2017 and declining Australian home prices will persist over the near term. This is likely to reduce the level of new insurance written and increase claims. The deterioration in the economy could also lead to...
A change in analyst leads to a downgrade to no-moat Genworth’s fair value estimate to AUD 2.55 per share from AUD 2.70. The reduction is prompted by our expectation the recent downturn in the Australian economy, including the systemwide fall in home loan growth to 4.9% in 2018 from 6.8% in 2017 and declining Australian home prices will persist over the near term. This is likely to reduce the level of new insurance written and increase claims. The deterioration in the economy could also lead to...
A change in analyst leads to a downgrade to no-moat Genworth’s fair value estimate to AUD 2.55 per share from AUD 2.70. The reduction is prompted by our expectation the recent downturn in the Australian economy, including the systemwide fall in home loan growth to 4.9% in 2018 from 6.8% in 2017 and declining Australian home prices will persist over the near term. This is likely to reduce the level of new insurance written and increase claims. The deterioration in the economy could also lead to...
No-moat Genworth’s full-year 2018 results were in line with our expectations. Moderating Australian housing conditions and an October 2017 earnings curve review led to a 24% decline in net earned premiums, or NEP, and a 51.9% loss ratio, tracking our forecast for a 25% decline and 53% loss ratio. Excluding the impact of the curve review, NEP fell 4.3% in 2018, reflecting challenging end-market conditions, although underlying NPAT of AUD 93.9 million matched our projection. We maintain our AUD ...
Genworth is Australia's largest lenders mortgage insurer, with around 30% market share. Banks typically use LMI on residential home loans with loan/value ratios over 80% to manage credit risk. The insurer is a high-risk play on the Australian housing market, given the exposure to the riskiest housing loans. The U.S. housing crash illustrates the leverage of LMI to a severe economic downturn. Following a long period of economic growth and a benign credit environment in Australia, we expect increa...
No-moat Genworth’s full-year 2018 results were in line with our expectations. Moderating Australian housing conditions and an October 2017 earnings curve review led to a 24% decline in net earned premiums, or NEP, and a 51.9% loss ratio, tracking our forecast for a 25% decline and 53% loss ratio. Excluding the impact of the curve review, NEP fell 4.3% in 2018, reflecting challenging end-market conditions, although underlying NPAT of AUD 93.9 million matched our projection. We maintain our AUD ...
Moderately higher expected claims results in a reduction in no-moat Genworth’s 2018 underlying net profit after tax, or NPAT, to AUD 93.9 million from to AUD 99.7 million, with its fair value estimate reduced to AUD 2.70 per share from AUD 2.80. The company also continues to experience lower earned premiums due to its earnings curve review implemented in October 2017 but by progressively lower amounts. This review lengthened the time over which premiums are recognised but does not impact the e...
Moderately higher expected claims results in a reduction in no-moat Genworth’s 2018 underlying net profit after tax, or NPAT, to AUD 93.9 million from to AUD 99.7 million, with its fair value estimate reduced to AUD 2.70 per share from AUD 2.80. The company also continues to experience lower earned premiums due to its earnings curve review implemented in October 2017 but by progressively lower amounts. This review lengthened the time over which premiums are recognised but does not impact the e...
Genworth is Australia's largest lenders mortgage insurer, with around 35% market share. Banks typically use LMI on residential home loans with loan/value ratios over 80% to manage credit risk. The insurer is a high-risk play on the Australian housing market, given the exposure to the riskiest housing loans. The U.S. housing crash illustrates the leverage of LMI to a severe economic downturn. Following a long period of economic growth and a benign credit environment in Australia, we expect increa...
No-moat-rated Genworth’s fair value estimate of AUD 2.80 is unchanged following in-line first-half 2018 results. We still forecast underlying net profit after tax of AUD 100 million for 2018 after the company reported underlying NPAT for the half of AUD 50.3 million and statutory NPAT of AUD 41.9 million. We also continue to forecast ordinary and special dividends totalling AUD 24.5 cents per share in 2018, with the company declaring an ordinary interim 2018 dividend of AUD 8 cents and a speci...
No-moat-rated Genworth’s fair value estimate of AUD 2.80 is unchanged following in-line first-half 2018 results. We still forecast underlying net profit after tax of AUD 100 million for 2018 after the company reported underlying NPAT for the half of AUD 50.3 million and statutory NPAT of AUD 41.9 million. We also continue to forecast ordinary and special dividends totalling AUD 24.5 cents per share in 2018, with the company declaring an ordinary interim 2018 dividend of AUD 8 cents and a speci...
Genworth Australia is Australia's largest lenders mortgage insurer, with around 35% market share. Banks typically use LMI on residential home loans with loan/value ratios over 80% to manage credit risk. The insurer is a high-risk play on the Australian housing market, given the exposure to the riskiest housing loans. The U.S. housing crash illustrates the leverage of LMI to a severe economic downturn. Following a long period of economic growth and a benign credit environment in Australia, we exp...
No-moat-rated Genworth’s fair value estimate of AUD 2.80 is unchanged following in-line first-half 2018 results. We still forecast underlying net profit after tax of AUD 100 million for 2018 after the company reported underlying NPAT for the half of AUD 50.3 million and statutory NPAT of AUD 41.9 million. We also continue to forecast ordinary and special dividends totalling AUD 24.5 cents per share in 2018, with the company declaring an ordinary interim 2018 dividend of AUD 8 cents and a speci...
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