This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

A.M. Bests Affirms Rating Of Genworth Financial, Inc. And Its Key Life/Health Subsidiaries

While Genworth’s mortgage insurance businesses provide additional product diversification, both the domestic and international segments have reported volatility in recent years, driven by macroeconomic pressures within certain real estate markets. However, in 2013 and into 2014, the group has reported increasingly favorable results in these segments, tied to recovery in most markets, as well as increasingly stringent underwriting processes. While some seasonality is apparent in select markets, the general trend reflected improved delinquencies relative to prior periods. Genworth recently announced its intent to resume the process of a partial initial public offering (IPO) of its Australian mortgage insurance business. The execution of the IPO is subject to market conditions and valuation considerations, including business performance. Proceeds from the IPO would be available to ensure the operating businesses remain appropriately capitalized and to make progress on the company’s medium-term leverage targets. Also, in December 2013, Genworth raised $400 million from a debt issuance for the purpose of prefunding anticipated government-sponsored entity requirements within its domestic mortgage insurance operations, which are expected to be implemented later this year.

Genworth has improved the quality of its investment portfolio over the past few years, while retaining adequate yield in the current low interest rate environment. The company has reported a continued lower level of impairments, and like several of its peers, has opportunistically purchased securities within certain riskier asset classes to bolster yield. In addition to its typical investment grade corporate bonds and structured securities, A.M. Best notes that Genworth continues to take mortgage risk on both sides of its balance sheet, which somewhat increases the risk of this asset class to the company. However, the company has reported minimal impairments related to commercial mortgage loan investments, and overall investment exposure to this asset class is generally consistent with peers. A.M. Best will continue to closely monitor Genworth’s overall investment performance for material losses going forward.

2 of 4

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,856.78 -278.94 -1.54%
S&P 500 2,071.26 -29.78 -1.42%
NASDAQ 4,927.37 -55.4390 -1.11%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs