Press release from PR Newswire
Genworth Financial Announces Full Execution Of Comprehensive U.S. Mortgage Insurance Capital Plan
Monday, April 01, 2013
Genworth Financial Announces Full Execution Of Comprehensive U.S. Mortgage Insurance Capital Plan08:36 EDT Monday, April 01, 2013
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 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.
Genworth has approximately 6,300 employees and operates through three divisions: U.S. Life Insurance, which includes life insurance, long term care insurance and fixed annuities; Global Mortgage Insurance, containing U.S. Mortgage Insurance and International Mortgage Insurance segments; and the Corporate and Other division, which includes the International Protection, Wealth Management and Runoff segments. Products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, Inc., headquartered in Richmond, Virginia, traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com. From time to time, Genworth Financial, Inc. releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com.
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to our plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts as well as statements identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.
 Holding company cash and highly liquid securities is comprised of assets held in Genworth Holdings, Inc. ("Old Parent") which is now a subsidiary of Genworth Financial, Inc. ("New Genworth").
SOURCE Genworth Financial, Inc.
For further information: Investors - Georgette Nicholas, +1-804-662-2248, email@example.com, or Media - Al Orendorff, +1-804-662-2534, firstname.lastname@example.org, www.genworth.com/presscenter