Genworth (GNW) Announces Sale of Wealth Management Business

In February 2013 Genworth (GNW) named CFO Martin Klein executive vice  president. Adding to the ongoing CFO duties his new role is responsible for, among other duties, positioning the non-core International Protection’s and Wealth Management units’ for eventual sale as outlined in the strategic plan.  We commented at the time that, “It is encouraging to see […]

Genworth (GNW) Takes Further Action on Turnaround

Our Genworth Investment Thesis [Source] noted a lot of moving parts both at the company and macroeconomic level; “the company will likely continue selling at a discount pending further resolution of the many issues that need to be monitored. However, it seems turnaround is underway on both a macro and micro level but largely overlooked […]

Genworth Financial (GNW) Reports 4Q12 Results

Genworth Financial (GNW) reported 4Q12 earnings on February 5, 2013 [Source]. Genworth continues to be a work in progress. Our investment thesis [Source] identified many moving parts that need addressed to restore investor confidence. The 4Q12 report on a quarter to quarter basis is characterized as mixed from an operating perspective. From a longer term value perspective, as our investment […]

Genworth (GNW) Announces Resourceful Capital Plan

This plan is resourceful and a significant catalyst for appreciation in the months to come. The plan utilizes the undervalued assets of the company to address rating agency concerns and preserve the still to be recognized value for existing shareholders. The News Release in Part [Source]: Genworth Financial (GNW) announced today a comprehensive capital plan for […]

Genworth Update

Mortgage Delinquency Rates Continue to Improve: Lender Processing Services, Inc. (LPS) provides analytics on the mortgage and real estate industries with a loan-level database representing approximately 70 percent of the overall market. What better leading indicator and gauge for the health of the mortgage business than those collecting the payments? The table below is LPS’s […]

Genworth Financial: New Leadership

Genworth Financial (GNW) announced that its board of directors selected Thomas J. Mc Inerney as the company’s president and chief executive officer, effective January 1, 2013.  Mc Inerney is a seasoned insurance industry veteran with experience in senior leadership positions at ING Groep and Aetna Financial Services. Most recently he was an advisor with Boston Consulting Group. As presented […]

Genworth (GNW) Investment Thesis: Part I What went wrong?

Genworth Financial, Inc. (GNW): Genworth Financial, Inc. (GNW) provides insurance and financial management in the United States and internationally including fixed annuity products, life and long-term care insurance; payment protection; and mortgage insurance to insure residential mortgage loans. With more than 15 million customers in 25 countries the company was spun off from General Electric, Inc. […]

Genworth (GNW) Investment Thesis: Part II Turnaround and Valuation

In Genworth (GNW) Investment Thesis: Part I we discussed what led to the collapse in the share price and why it is still trading at a huge discount to intrinsic value. The central question: is this deep discount justified or is it a value investing opportunity created by past worries, fear and excessive pessimism? To […]