Genworth Mortgage Insurance has changed its reserving methodology and will now hold re-delinquency claims reserves for all policies that have experienced delinquency as opposed to holding reserves against re-delinquencies which were cured in the last six months.
With no change in its earnings curve, the longer-term earnings outlooks remains unchanged, notes Macquarie.
Continuing to see value in the company, Macquarie retains its Outperform rating with the target falling to $2.50 from $2.75.
Sector: Banks.
Target price is $2.50.Current Price is $2.25. Difference: $0.25 – (brackets indicate current price is over target). If GMA meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
