This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Genworth Financial Announces Full Execution Of Comprehensive U.S. Mortgage Insurance Capital Plan

RICHMOND, Va., April 1, 2013 /PRNewswire/ -- Genworth Financial, Inc. (NYSE: GNW) announces the comprehensive U.S. Mortgage Insurance capital plan has received all necessary approvals and been fully implemented as of April 1, 2013. The capital plan, announced on January 16, 2013, consisted of several actions including transferring ownership of the European mortgage insurance subsidiaries to Genworth Mortgage Insurance Corporation (GMICO) that was completed on January 31, 2013 and implementing an internal legal entity reorganization which created a new public holding company structure that removes the U.S. mortgage insurance subsidiaries from the companies covered by the indenture governing Genworth's senior notes that was completed on April 1, 2013.

Cash and highly liquid securities held by the holding company[1] are estimated to be approximately $950 million as of March 31, 2013. Subsequently, as part of the comprehensive capital plan, Genworth contributed $100 million to GMICO on April 1, 2013. The company continues to expect to maintain holding company cash and highly liquid securities balances of two times its annual debt service expense plus a $350 million buffer.

Also, as part of the plan, Genworth continues to have the future option, under certain adverse conditions, should they occur, to implement a "NewCo" type structure, for the continued writing of new business in all 50 states. The company anticipates the risk-to-capital ratio of our flagship writer, GMICO, will be reduced by approximately 15 points and the combined risk-to-capital ratio of the U.S. mortgage insurance subsidiaries will be reduced by approximately 10 points from this plan.

"We are very pleased to have received all the necessary regulatory approvals and fully implement the comprehensive capital plan for the U.S. mortgage insurance business announced in January 2013," said Martin P. Klein, executive vice president and chief financial officer. "U.S. mortgage insurance is a key component of our Global Mortgage Insurance Division, and the plan increases our financial flexibility while bolstering capital in the business to continue writing profitable new business and returning the business to profitability over time."

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs