swung to profit in the second quarter, but trailed earnings estimates hurt by declining revenues in the life insurance segment.
Net income for the second quarter came in at $42 million or 8 cents a share, up from a loss of $50 million or 11 cents a share in June 2009. Adjusted for items, net operating income jumped more than 13 times to $118 million or 24 cents a share from $9 million or 2 cents a share a year earlier.
Analysts were expecting 28 cents on $2.56 billion. The stock is down 3.6% to $15.22 in extended trading.
Total revenue declined 3% to $2.41 billion from $2.48 billion a year earlier. Premiums declined 2% to $1.47 billion.
Operating income in the retirement and protection segment declined 8% to $114 million. Life insurance earnings declined 45% to $32 million. International segment profits rose 21% to $105 million on the back of strong performance in Canada and Australia mortgage insurance and life protection.
The U.S. mortgage business narrowed its losses in the second quarter to $40 million from $134 million a year earlier, on the back of lower delinquencies, improved cure rates and increased loss mitigation savings.
--Reported by Shanthi Venkataraman in New York.
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