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Genworth Financial, Inc. Message Board

  • soulec soulec Nov 1, 2013 7:17 PM Flag

    Rpschom, or other insurance guru's....

    If Genworth can settle for less than the $834M with BofA, lets just say its 560M, how does that change the balance sheet when in flows thru the company, I'll assume its a one time payout.

    That is still a lot of money, is that money held in reserves(loss) and a known amount, with no changes to current balance sheet, etc? Would the settlement of lets say 560M+-(less than reserves) actually benefit Genworth BS if the amount is already in loss reserves?

    I'm not a insurance expert, by no means!


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    • Assuming the amount of the reserve set aside is 834M and the settlement is for an amount less than the difference will go to the will go to the P&L (and EPS) as a favorable item. GNW has the cash to pay. Does anyone know the amount of the reserve that was set aside for this issue?

      Sentiment: Strong Buy

    • This is old news and accounted for. At this point it can only turn into good news if the settlement is for less.

    • I am certainly no insurance expert, guru or CPA, Soule but my humble opinion on this potential settlement should resolve to the positive for GNW. Bottom line reasoning, it is less than the amount reserved by GNW for the suit resolution---hence leaving a positive balance---as opposed to the negative, requiring more cash reserved. Where this residual balance money will be placed in the BS presently or in the future resides with the decisions by the professionals employed at headquarters. I am certain they will have it categorized for maximum benefit as to their overall plan moving forward. What flexibility and opportunities they create--- remains to be seen.
      Cheers that the street views these decisions as positive and their trade continues to support our SP ascent!
      Have a great week end!

      Sentiment: Strong Buy

    • With all the news about BAC's mortgages being garbage I think BAc would settle for 50 cents on the dollar.
      just to get something in their win column.

      GNW reserved the money and so they can put back the difference to our cash or some other asset that is not reserved, if they already expensed any of it then we get to add it back as income as well.


    • you are over thinking this sir, keep it simple. BAC was suing GNW for 834M.....GNW already has that money in reserve and ready to disperse. even if they pay 833M thats a positive for GNW. Same thing like JPM and BP . They over saved and thats cool. Monday we fly to the sky.

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