Genworth Financial

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Genworth Financial, Inc.
Type Public
Traded as NYSEGNW
S&P 500 Component
Industry Financial Services
Founded May 2004
Headquarters Richmond, Virginia, United States
Key people Thomas J. McInerney,
President and Chief Executive Officer
Products Life and Long Term Care Insurance, Wealth Management, Mortgage Insurance, Lifestyle Protection Insurance, and Annuities
Employees ~6,300 (2013)
Website www.genworth.com

Genworth Financial is a Fortune 500 financial security company. Genworth was founded as The Life Insurance Company of Virginia in 1871.[1] In 1986, Life of Virginia was acquired by Combined Insurance, which became Aon in 1987. In 1996, Life of Virginia was sold to GE Capital.[2] In May 2004, Genworth Financial was formed out of various insurance businesses of General Electric Company in the largest IPO of that year.[3]

The Genworth Financial family of companies operates through three segments: Retirement & Protection, US Mortgage Insurance, and International. Products and services include life and long-term care insurance, wealth management, mortgage insurance, lifestyle protection insurance, and annuities. Its legal structure is set up as six separate insurance companies, such as the Genworth Life Insurance Company and the Genworth Mortgage Insurance Company.

On April 1, 2013, Genworth announced the completion of a legal entity reorganization, with the net result being the creation of a new ultimate holding company. This restructuring removes the U.S. mortgage insurance subsidiaries from the companies covered by the indenture governing Genworth's senior notes.[4]

Company History[edit]

A.G. McIlwaine was the company’s first president, with D’Arcy Paul and D.B. Tennant as vice presidents.[5] Begun by two dozen Petersburg investors, the Life Insurance Company of Virginia offered its first policies to local customers before expanding to Richmond, Virginia. Under general agent F.W. Chamberlayne, the Richmond Department attracted a large number of new clients. Within the first decade, the company’s client base expanded beyond Virginia and the south, growing to include clients from Baltimore, New York city, and New Orleans.

As the Life Insurance Company of Virginia grew, the headquarters were moved from Petersburg to Richmond, the capital of Virginia, to better manage its increasing client base amidst the rapidly growing financial center of the south.[6] By the turn of the twentieth century, the company offered an array of products through different divisions, which added substantially to its growth and widespread customer appeal. The “Ordinary Division” of the company offered whole life annuity options and related products, the “Intermediate Division” offered term life products, endowment policies, and limited payment policies, and an industrial division offered products for the workplace.

Colloquially known as “Life of Virginia”, the company expanded its portfolio of products throughout the twentieth century. Beginning with its first annuities business written in 1928, the company grew to include different mortgage insurance, lifestyle protection, and long term care products and options.[7]

Over the past few decades, the company has undergone a couple major acquisitions, beginning in 1986 when Life of Virginia was acquired by Combined Insurance for $557 million, which became AON Corporation the following year.[8] In 1995, almost a decade after the acquisition, GE Capital, the financial services unit of General Electric, announced its plan to buy most of AON Corporation’s life insurance business, including Life of Virginia.[9]

Under GE Capital, Life of Virginia became a part of GE Financial Assurance Holdings, Inc., before becoming GE Capital Assurance Company. The company was incorporated as Genworth Financial, Inc. on October 23, 2003,[10] formed out of several GE Capital insurance companies. On May 25, 2004, Genworth became a publically traded company in the largest initial public offering (IPO) of 2004.[11]

GE sold the last of its remaining stake in the company in in 2006 for an estimated $2.8 billion.[12] In 2007, another GE Capital insurance company, First Colony Life Insurance Company, merged with Genworth Life and Annuity Assurance Company, one of the entities within Genworth Financial, Inc. As of December 31, 2011, Genworth Financial, Inc. had more than 15 million customers with a presence in more than 25 countries. "Profile: Genworth Financial Inc (GNW)". Reuters. Retrieved 27 October 2014. 

Products and Services[edit]

Genworth Financial offers a range of products and services, including long term care insurance, annuities, life insurance, and mortgage insurance. As Life of Virginia, the company began offering life insurance in 1871, and over time grew to expand into other products and services. In 2012, Genworth’s U.S. companies paid over $3.2 billion in benefits to life insurance, long term care insurance, and annuity policyholders and beneficiaries.[13]

Long Term Care Insurance[edit]

Genworth provides a range of options for personalized long term care insurance plans, including individual long term care insurance, group long term care insurance for employers offering benefits to employees, linked benefits that incorporate both long term care and life insurance, and caregiver support services.[14] Long term care insurance protects customers’ money by reimbursing people for long term care expenses, such as nursing home care, a home health aide, respite or hospice care, personal care in your home, services in assisted living facilities, and other expenses that may not be covered by health insurance, Medicare, and Medicaid.

Annuities[edit]

Genworth offers a diverse array of different annuities, all of which fall into one of three annuity options: fixed immediate annuities, traditional fixed deferred annuities, and fixed index annuities.[15][16]

Life Insurance[edit]

Life insurance was the company’s first product, and as of December 2013, Genworth Life and Annuity Insurance Company and Genworth Life Insurance Company have over $728 billion in force.[17] There are four types of life insurance products offered by Genworth: term life insurance, whole life insurance, guarantee universal life insurance, and index universal life insurance.[18]

Mortgage Insurance[edit]

Genworth’s mortgage insurance products enable customers to safely and responsibly purchase a home without fear of defaulting on their mortgage if a financial setback occurs. In addition to mortgage insurance, Genworth offers other benefits, such as homebuyer privileges, which provides rebates to items purchased for the home, and the homeowner assistance program, in which Genworth professionals work with homeowners and lenders to structure a feasible loan repayment program.[19]

References[edit]

  1. ^ "Profile: Genworth Financial Inc (GNW)". Reuters. Retrieved 17 September 2013. 
  2. ^ GE Capital To Acquire An Insurer
  3. ^ "US recorded largest number of IPOs in 2004 since internet bubble". AltAssets. Investor Networks Limited. 1 March 2005. Retrieved 17 September 2013. 
  4. ^ "A.M. Best Revises Outlook to Stable for Genworth Financial, Inc. and Its Key Life/Health Subsidiaries" (Press release). A.M. Best. 24 May 2013. Retrieved 17 September 2013. 
  5. ^ "A Guide to the Life Insurance Company of Virginia Records, 1871-1920". Virginia Historical Society. Retrieved 27 October 2014. 
  6. ^ "A Guide to the Life Insurance Company of Virginia Records, 1871-1920". Virginia Historical Society. Retrieved 27 October 2014. 
  7. ^ "Genworth Financial 10th Anniversary Timeline". Genworth Financial. Retrieved 27 October 2014. 
  8. ^ "A Guide to the Life Insurance Company of Virginia Records, 1871-1920". Virginia Historical Society. Retrieved 27 October 2014. 
  9. ^ "GE Capital to Acquire an Insurer". New York Times. 27 December 1995. Retrieved 27 October 2014. 
  10. ^ "Genworth Financial Inc.". CNN Money. Retrieved 27 October 2014. 
  11. ^ "DIGITAL DOMAIN; Google Shmoogle. The Biggest I.P.O's Went Unnoticed". New York Times. 29 August 2004. Retrieved 27 October 2014. 
  12. ^ "GE Sells Remaining $2.8 Billion Genworth Stock". Bloomberg. 27 February 2006. Retrieved 27 October 2014. 
  13. ^ "Focusing on our strength". Genworth Financial. Retrieved 4 December 2014. 
  14. ^ "Long Term Care". Genworth Financial. 13 November 2014. Retrieved 4 December 2014. 
  15. ^ "Prospectuses". Genworth Financial. 28 August 2014. Retrieved 4 December 2014. 
  16. ^ "Make an Informed Decision". Genworth Financial. 25 April 2013. Retrieved 4 December 2014. 
  17. ^ "Buying life insurance: It starts here.". Genworth Financial. 17 October 2014. 
  18. ^ "Life insurance types and options". Genworth Financial. 29 September 2013. Retrieved 4 December 2014. 
  19. ^ "Mortgage Insurance". Genworth Financial. Retrieved 4 December 2014. 

External links[edit]