Standard & Poor’s (S&P) has upgraded its outlook for Genworth Financial Inc, taking it to stable from negative based on rising profits and progress with its strategic plan.

“We expect Genworth to generate improved earnings for full-year 2013 compared with the prior year,” the ratings agency said.

Net income was $US321 million ($345 million) in the first half of this year, up from $US188 million ($202 million) in the corresponding period last year. The global mortgage insurance division drove much of the improvement.

The company completed the sale of its wealth management business this month, and net proceeds of $US360 million ($387 million) will be held on the Genworth Holdings balance sheet before the retirement of senior notices maturing in June next year.

Genworth has also reported a successful August debt issuance, and earlier this year it outlined a recapitalisation plan for its US mortgage insurance operations.

S&P has also upgraded Genworth Holdings to a stable outlook from negative and affirmed its BBB- long-term counterparty credit ratings on both entities.

“We expect the organisation to maintain a meaningful cash buffer at the holding companies, to pre-fund fixed-charge coverage needs and for financial flexibility,” S&P said.

Holding company cash was $US1 billion ($1.07 billion) at June 30.