Genworth moves to 3Q loss, withdraws guidance

The company also withdrew its full-year guidance said it would suspend its quarterly dividend and stock buyback program. Genworth also said it will consider asset sales.

For the three months ended Sept. 30, Genworth said it lost $258 million, or 60 cents per share, compared with a profit of $339 million, or 76 cents per share, in the year-ago period. The per-share results reflect a 3 percent reduction in the number of outstanding shares.

Revenue slid 25 percent to $2.17 billion from $2.88 billion.

Analysts polled by Thomson Financial, on average, expected profit of 55 cents per share on revenue of $3.07 billion.

The latest quarter's loss reflected $478 million in net investment losses, including $153 million related to subprime and Alt-A residential mortgage and asset-backed securities, and $145 million in corporate bonds of large financial services firms.

"This was a disappointing quarter for the company, which was compounded by the ongoing turmoil in the credit, equity and housing markets," said Chairman and Chief Executive Michael D. Fraizer in a statement. The company has suspended its dividend and its share repurchase program to preserve cash, he said, and its holding company pumped $500 million into the life insurance subsidiary. The company is also considering asset sales, debt refinancing or a possible capital raise.

"These steps may be needed to navigate continued market uncertainty and turmoil in the credit markets, while effectively positioning Genworth for the future," Fraizer said.

Genworth is planning to reduce annual expenses by $100 million to $150 million. That could result in a restructuring charge in the fourth quarter, the company said.

The company also withdrew its earnings outlook for the year. In its second-quarter report, Genworth said it expected full-year profit between $2.25 and $2.65 per share.