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
This press release is now posted on the company's website. Additional information regarding the comprehensive U.S. Mortgage Insurance capital plan is also posted on the company's website, http://investor.genworth.com. Investors are encouraged to review all of these materials.
Genworth will conduct a conference call on January 16, 2013 at 9 a.m. (ET) to discuss the comprehensive U.S. Mortgage Insurance capital plan. The conference call will be accessible via telephone and the Internet. The dial-in number for the conference call is 866 393.0571 or 206 453.2872 (outside the U.S.). To participate in the call by webcast, register at http://investor.genworth.com at least 15 minutes prior to the webcast to download and install any necessary software.Replays of the call will be available through January 30, 2013 at 855 859.2056 or 404 537.3406 (outside the U.S.); the conference ID # for the call is # 89623448. The webcast will also be archived on the company's website. About Genworth Financial Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company dedicated to helping people secure their financial lives, families and futures. Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement -- including life insurance, long term care insurance, financial protection coverages, and independent advisor-based wealth management -- and mortgage insurance that helps consumers achieve home ownership while assisting lenders in managing their risk and capital.