We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (16,884)
  • Industry Conferences (3)
  • Industry Job Openings (3)
  • Negative Media (139)
  • Positive Media (73)
  • Sheryl's Articles (625)
  • Sheryl's Blogs (178)
  • Wink's Articles (242)
  • Wink's Blogs (225)
  • Wink's Press Releases (93)
  • Blog Archives

  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • A.M. Best Downgrades Ratings of Genworth Financial, Inc. and Its Subsidiaries

    February 9, 2016 by Best's New's Service

    FOR IMMEDIATE RELEASE

    OLDWICK – FEBRUARY 09, 2016
    A.M. Best has downgraded the financial strength rating (FSR) to B++ (Good) from A- (Excellent) and the issuer credit ratings (ICR) to “bbb+” from “a-” of Genworth Life and Annuity Insurance Company (GLAIC) (Richmond, VA). Concurrently, A.M. Best has downgraded the FSR to B++ (Good) from A- (Excellent) and the ICR to “bbb” from “a-” of Genworth Life Insurance Company (GLIC) (Wilmington, DE) and Genworth Life Insurance Company of New York (New York, NY). Additionally, A.M. Best has downgraded the ICR to “bb+” from “bbb-” of Genworth Financial, Inc. (Genworth) [NYSE: GNW] and its existing issue ratings by one notch. The outlook for all ratings is negative, except for GLAIC’s FSR outlook, which has been revised to stable from negative. (Please see below for a detailed list of the issue ratings.)

    The rating downgrades reflect the uncertainty and material execution risk of obtaining the required regulatory approvals associated with Genworth’s recent strategic announcement during the company’s fourth quarter 2015 earnings presentation on Feb. 5, 2016. A.M. Best notes that, in addition to the announcement, Genworth reported a material reserve charge associated with the company’s universal life business, which drove an operating loss in the U.S. Life Insurance segment on a GAAP basis during the quarter. The company’s year-end 2015 operating results continue to reflect varying degrees of volatility and macroeconomic pressures occurring in many of the company’s business segments, including its mortgage insurance operations.

    Genworth’s strategic announcement includes the unstacking and restructure of various life and health insurance entities, subject to regulatory approval, coupled with the suspension of marketing of all traditional life and annuity business. As such, if completely executed, GLIC’s business profile will become even more heavily concentrated in long term care (LTC) business, which A.M. Best views as one of the least creditworthy insurance products in the market presently. While Genworth has achieved some success in attaining rate increases to date, the profitability of the company’s LTC business is heavily dependent on continued rate increases and pricing actions to offset incorrect assumptions associated with legacy blocks of business. Given Genworth’s intent to isolate the liabilities of the LTC operations, A. M. Best believes that the company anticipates additional challenges in the management of this business.

    The rating reflects A.M. Best’s belief that GLAIC is no longer considered a core business within the Genworth organization. Additionally, while GLAIC’s risk-adjusted capitalization would likely benefit with the execution of the proposed run-off status, the company may become a material source for holding company debt service in the next few years. A.M. Best is concerned that if substantial dividends were moved out of the entity to the holding company level, it could drive a decline in current capitalization levels.

    Genworth continues to maintain an adequate level of financial flexibility with financial leverage of approximately 27% as of Dec. 31, 2015. Holding company cash is currently just over $1 billion, reflecting the recent redemption of the company’s 2016 debt maturity. The next debt maturity, with approximately $600 million outstanding, occurs in 2018. Currently, Genworth’s international mortgage operations have been the sole providers of debt service to the holding company and A.M. Best believes that financial flexibility of the overall organization is likely to become increasingly more limited in the next few years.

    The ICR has been downgraded to “bb+” from “bbb-” with the outlook remaining negative for Genworth Holdings, Inc. and Genworth Financial Inc.

    The following issue ratings have been downgraded with the outlook remaining negative:

    Genworth Holdings, Inc. (guaranteed by Genworth Financial, Inc.)—

    — to “bb+” from “bbb-” on $600 million 6.515% senior unsecured notes, due 2018

    — to “bb+” from “bbb-” on $400 million 7.70% senior unsecured notes, due 2020

    — to “bb+” from “bbb-” on $400 million 7.20% senior unsecured notes, due 2021

    — to “bb+” from “bbb-” on $750 million 7.625% senior unsecured notes, due 2021

    — to “bb+” from “bbb-” on $400 million 4.9% senior unsecured notes, due 2023

    — to “bb+” from “bbb-” on $400 million 4.8% senior unsecured notes, due 2024

    — to “bb+” from “bbb-” on $300 million 6.50% senior unsecured notes, due 2034

    — to “bb-” from “bb” on $600 million fixed/floating rate junior subordinated notes, due 2066

    The following indicative ratings on securities available under the universal shelf registration have been downgraded:

    Genworth Financial Inc.

    — to “bb+” from “bbb-” on senior unsecured debt

    — to “bb” from “bb+” on subordinated debt

    — to “bb-” from “bb” on preferred stock

    Genworth Holdings, Inc.

    — to “bb+” from “bbb-” on senior unsecured debt

    — to “bb” from “bb+” on subordinated debt

    — to “bb-” from “bb” on preferred stock

    Genworth Global Funding Trusts—program rating to “bbb+” from “a-”

    — to “bbb+” from “a-” on all outstanding notes issued under the program

    This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activityweb page.

    A.M. Best is the world’s oldest and most authoritative insurance rating and information source.

     

    CONTACTS:
    Kate Steffanelli
    Senior Financial Analyst
    (908) 439-2200, ext. 5063
    kate.steffanelli@ambest.com

    Joseph Zazzera, MBA
    Assistant Vice President
    (908) 439-2200, ext. 5797
    joseph.zazzera@ambest.com

    Christopher Sharkey
    Manager, Public Relations
    (908) 439-2200, ext. 5159
    christopher.sharkey@ambest.com

    Jim Peavy
    Assistant Vice President, Public Relations
    (908) 439-2200, ext. 5644
    james.peavy@ambest.com

    Originally Posted at AM Best on February 9, 2016 by Best's New's Service.

    Categories: Industry Articles
    currency