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Genworth Financial is a leading insurance company in the U.S. with an expanding international presence serving the life and lifestyle protection retirement income investment and mortgage insurance needs of their customers. They distribute their products and services through an extensive and diversified distribution network that includes financial intermediaries independent producers and dedicated sales specialists. Genworth Financial Inc. has a market cap of $5.11 billion; its shares were traded at around $10.62 with and P/S ratio of 0.51. Highlight of Business Operations: We also have Corporate and Other activities which include debt financing expenses that are incurred at our holding company level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of non-core businesses that are managed outside of our operating segments. For the three months ended September 30, 2009, Corporate and Other activities’ net loss available to Genworth Financial, Inc.’s common stockholders and net operating loss available to Genworth Financial, Inc.’s common stockholders were $57 million and $19 million, respectively. For the nine months ended September 30, 2009, Corporate and Other activities’ net loss available to Genworth Financial, Inc.’s common stockholders and net operating loss available to Genworth Financial, Inc.’s common stockholders were $171 million and $105 million, respectively.
Our loss mitigation activities, including those relating to workouts, loan modifications, pre-sales and rescissions, have resulted in a reduction of loss exposure of approximately $557 million for the nine months ended September 30, 2009. In the process, we approved approximately 17,600 workouts, loan modifications and pre-sales during this period resulting in a reduction of loss exposure of approximately $173 million. The workouts and loan modifications could be subject to potential re-default by the underlying borrowers. In addition, as a result of investigation activities on certain insured delinquent loans, we found significant levels of misrepresentation and non-compliance with certain terms and conditions of our underlying master insurance policies, as well as fraud. These findings resulted in rescission actions that reflect approximately $384 million of further reduction in our exposure for future losses for the nine months ended September 30, 2009. Our investigations process and rescission actions along with expanded loan modification efforts given various related lender and government programs, are expected to continue and have had a significant benefit; however, going forward, there is no assurance regarding what specific level of benefits will result.
Read the The complete ReportGNW is in the portfolios of Arnold Schneider of Schneider Capital Management, NWQ Managers of NWQ Investment Management Co, Edward Lampert of ESL Investments, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Dodge & Cox, David Dreman of Dreman Value Management.
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