Genworth Announces Comprehensive US Mortgage Insurance Capital Plan

Genworth Financial GNW today announced a comprehensive U.S. Mortgage Insurance capital plan that, when implemented, will reduce Genworth Mortgage Insurance Company's (GMICO), the company's main U.S. mortgage insurance subsidiary, risk-to-capital by 12 to 15 points, decrease the likelihood that the U.S. mortgage insurance subsidiaries will require additional capital for the foreseeable future, ensure the continued ability to write new business and reduce the risk of a default under the indenture governing Genworth's senior notes. The capital plan consists of several actions, some of which are still subject to regulatory approval: (1) transferring ownership of the European mortgage insurance subsidiaries to GMICO; (2) enabling the future option, under certain adverse conditions, should they occur, to implement a "NewCo" type structure, for the continued writing of new business in all 50 states; and (3) implementing an internal legal entity reorganization which creates a new holding company structure that will remove the U.S. mortgage insurance subsidiaries from the companies covered by the indenture governing Genworth's senior notes. Genworth will also contribute $100 million to GMICO as part of the See full press release