Genworth Said to Seek Buyers for GLAIC Life, Annuity Unit
11:07 AM EDT
April 2, 2015
Genworth Financial Inc., the insurer weighing a breakup after steep losses on policies covering long-term medical care, is seeking buyers for a life and annuity unit, according to people familiar with the matter.
The firm is working with Goldman Sachs Group Inc. on a sale of Genworth Life and Annuity Insurance Co., or GLAIC, said the people, who asked not to be identified because the matter isn’t public.
Genworth will consider selling GLAIC in parts if it can’t find a buyer for the entire unit, two of the people said.
In a sale, GLAIC would fetch a discount to its year-end capital and surplus of about $2.1 billion, one person said. Capital and surplus represents the difference between the value of an insurer’s assets and liabilities.
Genworth rose 3.6 percent to $7.59 a share as of 11:09 a.m. in New York, giving the company a market value of about $3.8 billion.
Al Orendorff, a spokesman for Richmond, Virginia-based Genworth declined to comment, as did Leslie Shribman, a spokeswoman for Goldman Sachs.
Genworth announced a strategic review in February, after losing about $1.6 billion in the second half of 2014 because it didn’t have enough money set aside to cover payouts on long-term care policies, which help incapacitated people pay for nursing homes and health-care aides. It’s also selling a European unit that helps people pay bills if they can’t work.
GLAIC, which sells annuities, individual life insurance and employee-provided insurance, earned about $200 million last year, according to its 2014 annual statement. GLAIC is the second-largest of Genworth’s four main life insurance subsidiaries, with about $24 billion of assets and more than $20 billion in liabilities at year-end.
People buy annuities to ensure they have a steady source of income after they retire. Axa SA, CNA Financial Corp., Hartford Financial Services Group Inc. and other insurers in recent yea
Maybe they're talking about the news organizations with their misleading headlines and articles...making it seem like it's a brand new never before seen/heard of news before yesterday.
The organizations probably know they screwed up today but it's too late and they're going to just not do anything to make themselves look bad and incompetent...no research before releasing the articles.
Do you think that all the organizations that mislead/lied to the public/investors will put out an apology & correction? Emailed WSJ the pertinent info/quote but not sure if they will admit to their "error".
The Truth Hurts...Liberals Hate Unbiased News Reports like they have on Fox News...Libs prefer Censored & Biased.
Now we know why GNW was down big yesterday...on the leaked news about the S&P rating cut/affirm (see info below). Thought it couldn't be the Australian news since that came out really early on Tuesday morning & GNW finished up $0.15 after the news that day.
S&P Cuts Genworth Financial (GNW), U.S. Subsidiaries Two Notches to 'BBB-'
February 19, 2015 9:57 AM EST
Standard & Poor's Ratings Services said today that it lowered its counterparty credit and financial strength ratings on Genworth Financial Inc.'s (NYSE: GNW) U.S. life insurance subsidiaries--Genworth Life Insurance Co., Genworth Life & Annuity Insurance Co., and Genworth Life Insurance Co. of New York--to 'BBB-' from 'BBB+'. At the same time, Standard & Poor's lowered its counterparty credit ratings on Genworth Financial Inc. and Genworth Holdings Inc. to 'BB-' from 'BB+'. The outlook on all of these companies is negative.
In addition, Standard & Poor's took the following actions on Genworth's various other subsidiaries:
We affirmed our 'A+' counterparty credit and financial strength ratings on Genworth Financial Mortgage Insurance Co. Canada and our 'BBB+' counterparty credit rating on Canadian holding company Genworth MI Canada Inc. We revised the outlook on these companies to stable from negative.
We affirmed our 'A+' counterparty credit and financial strength ratings on Genworth Financial Mortgage Insurance Pty Ltd. and Genworth Financial Mortgage Insurance Pty Ltd. (NZ Branch), (Genworth Australia), the active Australian lenders' mortgage insurance (LMI) business. We also affirmed our 'A-' rating on Australian LMI run-off subsidiary Genworth Financial Mortgage Indemnity Ltd. We revised our outlook on Genworth Australia to developing from negative, and we revised our outlook on Genworth Financial Mortgage Indemnity Ltd. to developing from stable.
Very nice info & write up. I'm a bit surprised that SUNE is not up fairly big on it's report but maybe SCTY is affecting SUNE's afterhours action. Maybe SUNE will be trading positive tomorrow after their conference call.
It's amazing how fast & far SUNE has already come over the last year & the incredible growth it continues to have going forward. This has to be a $50+ stock in the next year or so imo.
Congrats & good luck!
Guidance is usually what analysts & investors think is most important, so we'll have to wait until we know more but overall the report looks great & SunEdison future looks amazing imo.
What Zack hit piece...Zack has been a strong sell with consent negative comments on GNW since it was trading around $1 per share. Thanks and good luck.
The Australian news came out really early Tuesday morning & GNW was up +$0.15 that day. Not sure what is affecting the price this (Wed) morning. Notice other insurers are currenlty down at the moment too but not nearly as much.
They say factually that all of the jobs are part time (many illegal) immigration type of workers. This is unacceptable to the US poor & middle class!!!
Presidents & CEO of major companies unlike Obama a local community organizer...LMAO!! Why you playing games??? We know you & most people don't like Obama as a person/leader or leader...only like him because he's a Liberal/Democrat.
Idiot Obama & Joe "Stooges" Biden are 2 of the dumbest people in the world... They both keep sticking their feet in their mouths. They are like a comedy team except they're not trying to be funny! Obama makes Carter look competent LMAO!
We all wish we had global warming temps like South FL year around!
A Few Known College Dropouts:
Frank Lloyd Wright
A Few Known College Dropouts:
Frank Lloyd Wright
Amazing earnings! Congrats and good luck!