February 23, 2010 / 8:21 PM / in 8 years

UPDATE 1-Genworth sees US mortgage insurance losses peaking

* Sees U.S. mortgage insurance losses peaking in mid-2010

* Says no plan to sell stake in Canada MI business

* Says to reinvest additional $1 bln-$2 bln by mid-2010

Feb 23 (Reuters) - Insurer Genworth Financial Inc (GNW.N) said U.S. mortgage insurance losses from 2005-2007 books are moderating, and expects losses from the business to peak in mid-2010.

The company also said at the Bank of America Merrill Lynch 2010 insurance conference it currently has no plans to sell its 57.5 percent stake in Genworth Mortgage Insurance Canada.

Genworth, a life and mortgage insurer, plans to reinvest an additional $1 billion to $2 billion by mid-2010, it said.

Mortgage insurance is bought by homebuyers securing loans with down payments of less than 20 percent to repay the lender if there is a default. Genworth clung to its U.S. mortgage business even as the nation’s housing market nosedived.

Battered by losses from the downturn in the U.S. housing markets, Genworth said in December its U.S. mortgage insurance business would not turn an operating profit until mid-2011. [ID:nN15226955]

Shares of the Richmond, Virginia-based company were trading down 3 percent at $15.33 Tuesday afternoon on the New York Stock Exchange. They rose 3 percent to touch a 52-week high of $16.33 earlier in the day. (Reporting by Abhinav Sharma in Bangalore; Editing by Unnikrishnan Nair)

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