(Corrects to remove reference to Canadian shares in third paragraph. Follows clarifying information from Genworth that it is not using Canadian subsidiary shares to increase reserves in mortgage unit.)
* Shares fall 7.5 pct after hours
* Genworth forecasts second quarter loss
NEW YORK, July 20 (Reuters) - Insurer Genworth Financial Inc (GNW.N) forecast a second-quarter loss on Wednesday and said it will increase reserves in its mortgage insurance unit.
Genworth expects a net loss of $92 million to $112 million, or 19 cents to 23 cents per share. On an operating basis, it expects to lose 14 cents to 18 cents per share. Analysts polled by Thomson Reuters I/B/E/S expected on average a profit of 25 cents per share.
Genworth said it would increase reserves in its mortgage insurance unit by $300 million.
Earlier this week, the largest publicly traded mortgage insurer, MGIC Investment Corp (MTG.N), lost a quarter of its value after it posted a loss on spiking mortgage defaults.
Genworth shares fell 7.5 percent in after-hours trading following the warning. (Reporting by Ben Berkowitz; editing by Andre Grenon)