Genworth Mortgage Insurance has withdrawn earnings guidance provided just last month as the economy reels from unprecedented measures taken to stop the spread of the COVID-19 pandemic.

“Given the challenges in forecasting the impacts, Genworth considers it is no longer appropriate to maintain its guidance for FY2020 and so is withdrawing its FY2020 guidance from the market,” the company says in a statement to the Australian Stock Exchange.

On February 10, Genworth forecast a full-year loss ratio of 45-55%, compared with 50.6% in 2019. Net earned premium would come in within 5% of 2019’s $298.2 million, it said then.

Former KPMG Partner Pauline Blight-Johnston, who took over as Genworth CEO on March 2 after Georgette Nicholas returned to the US, says the company is uncertain what the ultimate impact of COVID-19 and the still-evolving mitigating customer, government and regulatory initiatives will be.

“Genworth is committed to safeguarding the interests of its people, customers, shareholders and other stakeholders and we are also mindful of our social responsibility to do our part to support the community,” Ms Blight-Johnston said.

Genworth is regularly engaging with more than 100 lenders who are customers to help them support borrowers during this time.

She says the company is well-capitalised with a strong balance sheet, including an investment portfolio of $3.1 billion, of which 81% is held in cash and fixed interest securities with a rating of ‘A-’ or better at 31 December 2019.