We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • A.M. Best Affirms Rating of Genworth Financial, Inc. and Its Key Life/Health Subsidiaries

    May 13, 2014 by Best's News Service

    Oldwick – A.M. Best has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of Genworth Life Insurance Company (Wilmington, DE), Genworth Life Insurance Company of New York (New York, NY) and Genworth Life and Annuity Insurance Company (Richmond, VA), the key life/health subsidiaries of Genworth Financial, Inc. (Genworth) [NYSE: GNW]. Additionally, A.M. Best has affirmed the ICR of “bbb” of Genworth and its existing debt ratings. The outlook for all ratings is stable. (Please see below for a detailed listing of the debt ratings.)

    The ratings of Genworth and its subsidiaries reflect the group’s continued improvement in overall profitability, enhanced financial flexibility, strong risk-adjusted capitalization and diversified business mix. Genworth continues to improve its overall risk profile through the de-risking of both its investment and product portfolios, more recently with its focus on pricing actions within its older vintage and newly underwritten long-term care (LTC) blocks. The organization’s life insurance segment complements Genworth’s domestic and international mortgage insurance business, providing excellent earnings diversification. Holding company liquidity remains very good, and financial flexibility continues to improve as Genworth has been efficient with its capital management, in addition to demonstrating repeated access to the capital markets. A.M. Best believes Genworth’s financial leverage and interest expense coverage remain at adequate levels for its current ratings.

    Partially offsetting these positive rating factors are Genworth’s sizeable exposure to LTC business, significant interest-sensitive reserves as well as the highly competitive environment in its core life and fixed annuity markets. While A.M. Best remains cautious with regard to LTC, Genworth has been successful in securing various levels of approvals for rate increases on its existing blocks of business from most states and continues to be transparent in its management of these legacy policies. Additionally, core earnings from Genworth’s life insurance segment have been somewhat lackluster in recent periods with some reported mortality volatility in the first quarter of 2014, consistent with many other life insurance peers. The group’s life insurance portfolio continues to evolve, with Genworth shifting to more capital-efficient products and implementing pricing actions within its term life blocks. Moreover, A.M. Best notes the company’s material exposure to economically sensitive business through its various life and annuity offerings, and will continue to monitor for significant spread compression due to guaranteed minimum interest rates and the ongoing low interest rate environment.

    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.

    Factors that could result in a favorable rating action for Genworth in the medium term include material diversification in its business mix to products A. M. Best believes are more creditworthy including ordinary life, sustained favorable statutory operating results across its various core lines of business, sustained profitable management of non-core/legacy blocks of business and an overall reduction in its interest rate liabilities. Factors which could lead to a negative rating action include a material decline in the operating performance in any of its businesses, a significant and sustained decline in its statutory capital and/or a material increase in impairments from its investment portfolio.

    The ICR of “bbb” has been affirmed with a stable outlook for Genworth Holdings, Inc.

    The following debt ratings have been affirmed:

    Genworth Holdings, Inc. (guaranteed by Genworth Financial, Inc.)–

    –“bbb” on $600 million 5.75% senior unsecured notes, due 2014 ($485 million currently outstanding)

    –“bbb” on $300 million 8.625% senior unsecured notes, due 2016

    –“bbb” on $600 million 6.515% senior unsecured notes, due 2018

    –“bbb” on $400 million 7.70% senior unsecured notes, due 2020

    –“bbb” on $400 million 7.20% senior unsecured notes, due 2021

    –“bbb” on $750 million 7.625% senior unsecured notes, due 2021

    –“bbb” on $400 million 4.9% senior unsecured notes, due 2023

    –“bbb” on $400 million 4.8% senior unsecured notes, due 2024

    –“bbb” on $300 million 6.50% senior unsecured notes, due 2034

    –“bb+” on $600 million fixed/floating rate junior subordinated notes, due 2066

    Genworth Global Funding Trusts–“a” program rating

    –“a” on all outstanding notes issued under the program

    Genworth Life Institutional Funding Trust–“a” program rating

    The following indicative debt ratings on securities available under universal shelf registration have been affirmed:

    Genworth Financial, Inc.–

    –“bbb” on senior unsecured debt

    –“bbb-“on subordinated debt

    –“bb+” on preferred stock

    The following indicative debt ratings on securities available under universal shelf registration have been affirmed:

    Genworth Holdings, Inc.–

    –“bbb” on senior unsecured debt

    –“bbb-“on subordinated debt

    –“bb+” on preferred stock

    The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

    A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.

    Originally Posted at A.M. Best on May 9, 2014 by Best's News Service.

    Categories: Industry Articles
    currency