Last month, S&P Global Ratings raised its credit ratings on Genworth Financial Inc. “This is an important positive development for Enact and for Genworth as Enact will no longer be subject to more stringent capital requirements than its peers once these restrictions are removed, putting Enact on a more level playing field with competitors,” McInerney told securities analysts last month. ![]() Hitting Genworth’s debt-cutting target clears the way to ease restrictions that federal mortgage funders the Federal National Mortgage Association, known as Fannie Mae, and the Federal Home Loan Mortgage Corp., called Freddie Mac, placed on the company. “I’m proud that we’re entering this next chapter for Genworth with very manageable debt - one of the lowest debt-to-capital ratios in the life insurance industry today,” he added. mortgage insurance subsidiary, Enact,” McInerney said. “Addressing our near-term debt maturities has informed many of our strategic decisions over the past several years, including pursuing the Oceanwide transaction, the sale of our majority stakes in our international mortgage insurance businesses, and the IPO of our U.S. The quarterly dividend Genworth’s majority-owned mortgage insurer Enact pays on the shares Genworth retained currently yields $76 million a year. “We believe this is a sustainable level of debt for the company to carry going forward with manageable interest expense obligations of approximately $60 million per year,” Genworth CEO Tom McInerney has said. "I’m proud that we’re entering this next chapter for Genworth with very manageable debt - one of the lowest debt-to-capital ratios in the life insurance industry today," Genworth CEO Tom McInerney said. Those actions brought its total outstanding indebtedness down to $887 million. The Henrico County-based insurer wanted to get its debt down below $1 billion it finally did last year, buying back $143 million of IOUs due in 20, and redeeming $152 million of its 2024 debt. But during the 17 deadline extensions over five years that ended in April 2021, Genworth looked to its own resources to fix things. With its mortgage insurance business hammered by the Great Recession and its long-term care policies falling into the red when decades-old guesses about costs and usage turned out to be wildly wrong, Genworth Financial turned to a white knight, China Oceanwide Holdings Group Ltd., for help. “We have a significant presence here, and these two companies are enormous growth platforms,’’ he said. Frazier, GE Capital’s senior vice president for insurance and investment products and eventually the first CEO of an independent Genworth, speaking of the two Virginia acquisitions as he announced GE’s insurance operations would be headquartered in Richmond. “It was one of those one-plus-one-equals-three scenarios,” said Michael D. 5 on the Fortune 500 – made the Richmond area the headquarters of its multibillion insurance business. How Henrico County-based Genworth is bouncing back from debt and a changing insurance industryĮverything looked rosy a quarter century ago, when General Electric CEO Jack Welch’s shopping frenzies landed him two Virginia insurance stalwarts, and GE - then No.
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