Genworth Financial, Inc. (GNW) - NYSE
  • Fri, Feb. 5, 3:07 PM
    • Following Genworth's (GNW -22.4%) decision to suspend sales of life and fixed annuity products (because of already low credit ratings), and the move to isolate the LTC business, Moody's cuts the company's senior unsecured credit rating to Ba3 from Ba!.
    • An improvement in financial flexibility, including a clear path to managing debt maturities in 2018 and 2020/21 could lead to an upgrade, says Moody's. Conversely, another downgrade is possible on a further decline in finances or non-compliance with the GSE's capital standards.
    | Fri, Feb. 5, 3:07 PM | 9 Comments
  • Fri, Feb. 5, 9:28 AM
    • The headlines from Genworth's (NYSE:GNW) Q4 report aren't pretty, but they're overshadowing a number of positives, says BTIG's Mark Palmer, reiterating a Buy rating, but slashing the price target to $5 from $10.
    • Among those positives are much-needed stability in the troubled long-term care unit, as well as the Australian and Canadian mortgage insurance operations.
    • Isolating LTC from the rest of the company will be far easier, says Palmer, if operating performance is stable, and that's what it was in Q4 - the unit posting net operating income of $19M, the third profitable quarter in the past four.
    • Australia and Canada units both performed well despite the effects of the commodity crash on those economies. Aussie NOI of $22M was up $1M from Q3, and Canada NOI of $37M lost $1M.
    • Palmer's $5 price target is 0.25x book value (ex-AOIC) of $20.07.
    • Shares are lower by 28% premarket to $2.03.
    | Fri, Feb. 5, 9:28 AM | 13 Comments
  • Fri, Feb. 5, 9:17 AM
    | Fri, Feb. 5, 9:17 AM | 10 Comments
  • Thu, Feb. 4, 5:39 PM
    | Thu, Feb. 4, 5:39 PM
  • Thu, Feb. 4, 5:09 PM
    • Q4 net operating loss of $82M or $0.17 per share vs. $415M and $0.83 one year ago. This year's result includes after-tax charges of $184M or $0.37 per share mostly driven by assumption changes in universal life insurance.
    • The company will begin moves aimed at separating and isolating the long-term care business. In addition, Genworth (NYSE:GNW) is suspending all sales of traditional life insurance and fixed annuity products, which should save about $50M annually (will post a $15M pre-tax charge in 2016 Q1).
    • Book value per share, excluding AOCI, of $19.71 vs. $21.09 one year ago.
    • Conference call tomorrow at 8 ET
    • Previously: Genworth Financial EPS of -$0.59 (Feb. 4)
    • GNW -15.8% after hours to $2.35.
    | Thu, Feb. 4, 5:09 PM | 6 Comments
  • Thu, Feb. 4, 5:03 PM
    • Genworth Financial (NYSE:GNW): Q4 EPS of -$0.59 may not be comparable to consensus of $0.21.
    • Revenue of $2.16B (-3.1% Y/Y) misses by $10M.
    • Shares -12.2% AH.
    | Thu, Feb. 4, 5:03 PM | 22 Comments
  • Wed, Feb. 3, 5:35 PM
  • Mon, Jan. 4, 3:33 PM
    • The bull case according to many, writes Mark Palmer, is a break-up of the company allowing the value of the mortgage insurance units to be separated from the losses in long-term care.
    • Standing in the way of that split, says Palmer, is $4.3B of debt at the Genworth (GNW +1.3%) holdco, an amount management has promised to cut by $1B-$2B. But how can this paring happen given regulatory roadblocks to send any capital upstream from the company's U.S. Life unit (in which LTC is housed).
    • Though he believes delevering the holdco may not happen, Palmer thinks strategic options can be expanded if the company can stabilize operations for a few quarters. Complicating that though are lower commodity prices which raise questions about Genworth's Australian and Canadian MI units being able to avoid a surge in delinquencies and losses.
    • He rates the stock a Buy with $10 price target (vs. current price of $3.78).
    | Mon, Jan. 4, 3:33 PM | 14 Comments
  • Dec. 16, 2015, 7:58 AM
    • Kevin Schneider is promoted to the newly-created role of COO, effective Jan. 1. Schneider has been EVP of Global Mortgage Insurance since May, and prior to that was in a number of senior leadership roles at the company.
    • CEO Tom McInerney: "This appointment will enable me to focus on driving Genworth's (NYSE:GNW) overall strategy, including the continued pursuit of our strategic priorities."
    | Dec. 16, 2015, 7:58 AM | 6 Comments
  • Nov. 9, 2015, 5:40 PM
    • Synchrony Financial (NYSE:SYF) will replace former GE unit Genworth Financial (NYSE:GNW) in the S&P 500 on Nov. 17. GE is set to fully spin off its Synchrony stake through a share exchange.
    • SYF +1.3% after hours. GNW -1.3%.
    | Nov. 9, 2015, 5:40 PM | 1 Comment
  • Oct. 30, 2015, 11:03 AM
    • BTIG's Mark Palmer continues to believe the best way to maximize shareholder value is through a split of Genworth (GNW -10.2%) into two companies - one including the U.S. Life and Long-Term Care (LTC) units, and the other its mortgage insurance operations.
    • Job one, though, is assuring these individual businesses are stable, and last night's earnings report may have fallen a bit short.
    • Still, with the stock trading for about 0.25x book value (ex. AOCI), a big bounce is in order if management can achieve its goal of reducing holdco debt by $1B-$2B, and is able to sustain stable operating performance for a few quarters.
    • Reiterating his Buy rating, Palmer cuts the price target to $10 from $13.
    • Previously: Genworth Financial misses by $0.09, misses on revenue (Oct. 29)
    | Oct. 30, 2015, 11:03 AM
  • Oct. 29, 2015, 5:36 PM
    | Oct. 29, 2015, 5:36 PM | 16 Comments
  • Oct. 29, 2015, 5:23 PM
    • Genworth Financial (NYSE:GNW): Q3 EPS of $0.13 misses by $0.09.
    • Revenue of $2.1B (-4.1% Y/Y) misses by $80M.
    | Oct. 29, 2015, 5:23 PM | 3 Comments
  • Oct. 28, 2015, 5:35 PM
  • Oct. 27, 2015, 12:10 PM
    • The vastly improved credit performance at Radian (RDN -10.6%) may be old news at this point, and investors might be looking for more growth.
    • Speaking on the earnings call, CEO Sanford Ibrahim says he expects lower refinance business next year, but it should be offset by greater penetration in the new purchase area (MI is far more likely on purchases than refinances). Overall, he says, the market for mortgage insurance next year should be similar to 2015.
    • Webcast and presentation slides
    • Turning to the "high level" of competition, Ibrahim says his company "has opted not to compete" with certain discounts currently being offered. The decision has modestly hurt market share, he says, though quickly pointing out the company has been able to offset at least some of this.
    • MGIC Investment (MTG -6.4%), Genworth (GNW -4.5%), Essent Group (ESNT -2.9%), NMI Holdings (NMIH -2.2%)
    • Previously: More on Radian's Q3 miss (Oct. 27)
    • Previously: Radian Group misses by $0.05, beats on revenue (Oct. 27)
    | Oct. 27, 2015, 12:10 PM
  • Oct. 27, 2015, 7:44 AM
    • Genworth (NYSE:GNW) subsidiary GMICO agrees to sell its European mortgage insurance operation to AmTrust Financial (NASDAQ:AFSI), with the deal expected to result in net proceeds to the company of about $55M.
    • The money will used to provide an additional capital credit to GMICO to help it meet the new PMIERs. Prior to the sale GIMCO received no capital credit under PMIERs for its ownership of this business.
    • The company expects to book an after-tax GAAP loss of roughly $140M in Q4 thanks to the sale.
    • The deal is expected to close in Q1.
    | Oct. 27, 2015, 7:44 AM
Company Description
Genworth Financial, Inc. is a financial services company, which provides insurance, wealth management, investment and financial solutions. It operates its business through three divisions: U.S. Life Insurance, Global Mortgage Insurance, and Corporate and Other. The U.S. Life Insurance division... More
Sector: Financial
Industry: Life Insurance
Country: United States