Genworth's (NYSE: GNW) Q4 2015 earnings release and earnings call was excellent. LTC reserve assumptions were proven accurate and expected profit margin even increased. Mortgage Insurance in the U.S., Australia, and Canada all did exceptionally well despite the fear that slowing growth in China and low commodity prices would result in massive defaults. LTC even showed a profit this quarter.
The life insurance one-time expense was primarily a deferred acquisition cost ("DAC") unlock, which is very common in life insurance. DAC is amortized over the life of the insurance policy based on expected profitability in that contract. So the company has to project profits 20 or more years into the future. That is impossible to do with accuracy, and
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