Dec 11 Genworth Financial Inc named
Thomas McInerney chief executive as the insurer looks to move
past the billions of dollars in losses from its mortgage
McInerney, who was a member of the global management board
of ING Insurance from October 2009 through December 2010, is now
in charge of a company trying to convince markets and bond
rating agencies of the benefits of its mortgage insurance
Shares of the company were up 5 percent at $7.10 on the New
York Stock Exchange on Tuesday morning.
"This is a positive, but they still have problems. McInerney
has experience, but it's still wait and see," said a Genworth
shareholder, who declined to be named.
Bond rating firm Moody's had said a downgrade is likely
unless the company can insulate itself from continuing losses
from the mortgage insurance unit.
Long-time CEO Michael Frazier resigned in May after the
insurer pushed back plans to sell a minority stake in its
Australian mortgage insurance business through an initial public
The Australian unit's listing would have freed up capital,
which shareholders were hoping would be used for a long-awaited
share buyback program.
Hedge fund Highfield Capital, which owns more than 5 percent
of Genworth, had in June said it expects to discuss options for
the U.S. mortgage business, including a sale.