Following the reorganization, the U.S. mortgage insurance subsidiaries will no longer be subsidiaries of Genworth, the old parent, and therefore an insolvency event relating to the U.S. mortgage insurance subsidiaries will not cause an event of default under the indenture governing Genworth's senior notes. The reorganization is intended to provide a structural solution for such a potential event of default and to reduce the linkages between U.S. mortgage insurance subsidiaries and Genworth, the old parent, and does not reflect a change in the company's strategic position regarding the U.S. mortgage insurance subsidiaries. The U.S. mortgage insurance subsidiaries remain a key component of the company's Global Mortgage Insurance Division and overall corporate strategy. Also, it does not reflect any expectation that the U.S. mortgage insurance subsidiaries will in fact experience any insolvency related event, enter into a deferred payment order or not be in a position to pay all valid claims. Given the trends of new delinquencies, reserves, new insurance written, loss mitigation benefits and mortgage insurance penetration, and assuming no significant deterioration in the U.S. housing market or material global economic downturns, the company continues to believe these trends create the conditions for continued improvement in earnings for the U.S. mortgage insurance business, with a potential return to breakeven or modest profitability during one or two quarters in 2013. The company will provide additional information on this topic during the scheduled conference call noted below.Conference Call and Supplemental Information
Genworth Financial Announces Comprehensive U.S. Mortgage Insurance Capital Plan
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