Genworth Financial has reported that its net operating income for the first quarter of 2008 was $244 million compared to net operating income of $340 million for the same quarter of 2007.

Income from continuing operations for the quarter was $116 million, a decrease from $314 million recorded in the comparable quarter of 2007.

First quarter net investment losses of $128 million, net of tax and amortization of deferred acquisition costs, included $121 million of impairments, net of tax, $75 million of which is related to sub-prime and Alt-A residential mortgage and asset-backed securities, and $13 million of hedging ineffectiveness on income distribution series products.

Michael Fraizer, chairman and CEO of Genworth Financial, said: Genworth had a challenging quarter with weakness in US housing and financial markets, which impacted results in our US mortgage insurance and other domestic product lines, partly offset by solid performance in our international platforms.