I listened to the conference call. Genworth is not spinning off the MI business, simply putting a contingency plan in place, which is smart. This does not warrant a 12% share price gain. I am still bullish on the stock long term but this is an overreaction.
Successfully avoiding a credit downgrade to junk certainly merits today's leap. This is more than a US MI contingency plan - it is also the separation of the holding company bond indentures from MI risk, which has been a huge overhang on this for awhile. Worry of contagion from MI to life/ltc helped drive the price down - with Moody's action today, that risk has apparently been mitigated.
Next steps are to sell Wealth Management and establish ordinary dividends from the life companies to the holding company - that will start the process of improving the credit ratings.