Genworth Financial Expects $85M Tax Benefit

RICHMOND, Va. (AP) — Insurance company Genworth Financial Inc. said Thursday it expects to recover about $85 million in federal income taxes it has paid.

The refund is due to recently enacted legislation, the company said.

The exact amount of the recovery will be determined by results for the remainder of this year, with any statutory tax benefit being recorded in the fourth quarter of 2009.

The legislation expands the carryback period for certain net operating losses to five years from two years.

Most of the recovery will benefit the U.S. Mortgage Insurance business, and is expected to reduce the regulatory risk-to-capital ratio by 0.5 to 1.0 points by year-end 2009.

Genworth shares fell 43 cents, or 3.7 percent, to close at $11.17.