Genworth is Cheap but Exposure to Canada, Australia Worrisome

Genworth Financial Inc (NYSE:GNW) has been a good play on the housing recovery so far this year. Indeed, the company still trades at a discount to book value, which, excluding accumulated with other comprehensive income, stood at $23.4 per share at the end of the second quarter. Earnings per share are expected to grow 10% this year and on a forward earnings basis, that makes the company one of the cheapest within the life insurance sector, which trades at a forward P/E of around 10, compared to Genworth’s ratio of 9. Genworth is the company’s exposure to international markets However,…