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 […]

Value by George Portfolio 2012 Results

Investment results for 2012, our first year, were good on an absolute and a relative basis when compared to the Standard & Poor 500. Calendar year and annualized results are presented below. The investments are made at the time the investment idea is posted. Because the portfolio was built over the course of the year it […]

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 […]

Mortgage Insurance Industry Improving

In a nutshell, our investment thesis on Genworth Financial (GNW) is as U.S housing continues to recover GNW is in a good position to recover with it. Under performance in other areas of the insurer are being addressed and the improving macroeconomic climate will help. Activist shareholders and improvement in the mortgage insurance unit will be the catalyst […]

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 […]