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  • 10 Reasons Why Genworth Is A Good Value [View article]
    I agree. Nice points on investor interest and the lack of a short interest. Genworth is definitely battered by the market and down in value. But, there are some flaws when considering BV/share, BV/cash, P/Revenue, or P/FCF of life insurance companies, especially one who's estimated reserves have been so consistently strengthened (ie, missed) as GNW's. A look at their 10-K reveals that in 2011, they had to add $651m in reserves to cover claims they should have reserved for in 2010. They added almost $800m in 2010 to cover their 2009 estimate, and over $400m in 2009 to cover their 2008 estimate. As an insurance company, Genworth has to honor the commitments it is making today. I think part of why it trades at such a seeming discount is because investors question whether Genworth can price business profitably since it seems like they've missed it so badly in the past.
    Oct 7, 2012. 01:52 AM | 1 Like Like |Link to Comment
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