Profile: Genworth Financial Inc (GNW)
20 Oct 2014
Genworth Financial, Inc. (Genworth), incorporated on October 23, 2003, is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff. The Mortgage Insurance Division includes the business segments, such as International Mortgage Insurance and U.S. Mortgage Insurance. The Corporate and Runoff Division includes the Runoff segment and Corporate and Other activities. Effective October 1, 2011, the Company completed the sale of its Medicare supplement insurance business. During the year ended December 31, 2011, the Company exited the mortgage insurance market in New Zealand and ceased offering insurance coverage on new loans. On April 2, 2012, it sold Genworth Financial Investment Services to Cetera Financial Group, Inc. In September 2013, Genworth Financial, Inc closed the sale of its Wealth Management business, including Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, to a partnership of Aquiline Capital Partners and Genstar Capital.
Through the Company’s U.S. Life Insurance segment, it markets a range of life insurance, long-term care insurance and fixed annuities. The Company’s life insurance offerings include term universal and universal life. The Company also offers other universal life insurance products that provide permanent protection for the life of the insured. In addition, it also offers a linked-benefits product for customers who have traditionally self-funded long-term care risk or seek multiple benefits. Its linked-benefits product combines universal life insurance with long-term care insurance coverage in a single policy. Insureds become eligible for covered benefits if they become incapable of performing two activities of daily living.
Long-term care insurance provides coverage for skilled and custodial care provided outside of a hospital or health-related facility. Long-term care insurance claims typically have a duration of approximately two to five years with an average duration of approximately three years. During 2011, the Company began offering access to a Wellness Program. The Company offers fixed single premium deferred annuities, which require a single premium payment at time of issue and provide an accumulation period and an annuity payout period. In December 2011, the Company introduced a fixed indexed annuity. In exchange for a single premium, immediate annuities provide a fixed amount of income for either a defined number of years, the annuitant’s lifetime or the longer of a defined number of years or the annuitant’s lifetime.
The Company distributes its fixed annuity products through brokerage general agencies (BGAs), independent broker/dealers and select banks and national brokerage and financial firms. The Company provides lifestyle protection insurance that is principally offered by financial services companies at the point of sale of consumer products and it has a presence in more than 20 countries. In Europe, the Company provides lifestyle protection insurance. The Company’s lifestyle protection insurance products include primarily protection from illness, accident, involuntary unemployment, disability and death. It also provides third-party administrative services and administer non-risk premium with some relationships in Europe.
Mortgage Insurance Division
Through the Company’s International Mortgage Insurance segment, it provides mortgage insurance in Canada, Australia, Mexico and multiple European countries and has a presence in over 15 countries. Private mortgage insurance enables borrowers to buy homes with low-down-payment mortgages, which are usually defined as loans with a down payment of less than 20% of the home’s value. Low-down-payment mortgages are also referred to as high loan-to-value mortgages. Mortgage insurance protects lenders against loss in the event of a borrower’s default. Private mortgage insurance may also facilitate the sale of mortgage loans in the secondary mortgage market.
Genworth offers primary flow insurance and portfolio credit enhancement insurance. The Company also provides portfolio credit enhancement insurance to lenders that have originated loans with loan-to-value ratios of less than or equal to 80%. In Australia, the Company offers primary flow mortgage insurance, also known as lenders mortgage insurance (LMI), and portfolio credit enhancement policies. Its mortgage insurance products in Europe consist principally of primary flow insurance with single premium payments.
Through Genworth’s U.S. Mortgage Insurance segment, it provides private mortgage insurance. The majority of its U.S. mortgage insurance policies provide default loss protection on a portion (typically 10% to 40%) of the balance of an individual mortgage loan. Its primary mortgage insurance policies are predominantly flow insurance policies, which cover individual loans at the time the loan is originated. Flow insurance is primary mortgage insurance placed on an individual loan when the loan is originated. Under primary bulk insurance, the Company insures a portfolio of loans in a single, bulk transaction. Pool insurance generally covers the loss on a defaulted mortgage loan that either exceeds the claim payment under the primary coverage (if primary insurance is required on that loan) or the total loss (if that loan does not require primary insurance), in each case up to a stated aggregate loss limit on the pool.
Corporate and Runoff Division
The Company’s variable annuities provide contractholders the ability to allocate purchase payments and contract value to underlying investment options available in a separate account format. In January 2011, it discontinued sales of retail and group variable annuities. The Company’s institutional products consist of funding agreements, funding agreements backing notes (FABNs) and guaranteed investment contracts (GICs), which are deposit-type products that pay a guaranteed return to the contractholder on specified dates.
Genworth Financial Inc
6620 West Broad Street
RICHMOND VA 23230