Genworth Financial today said it is examining a number of strategic alternatives regarding its U.S. mortgage insurance business, including a possible spin-off, to determine the best alternative for the insurance firm, its customers and shareholders.
It also reaffirmed its sound financial foundation and cash availability to meet liquidity requirements across the company.
"We have demonstrated that, in the current stressed U.S. housing environment, our U.S. Mortgage Insurance business continues to operate from a more sound financial position and lower risk profile than any other U.S. mortgage insurer," said Michael Fraizer, chairman and chief executive officer. "At the same time, progress in our international, wealth management, retirement, life and long-term care insurance businesses has been overshadowed by concerns about the future of U.S. mortgage insurance."
The firm now reduced its commercial paper borrowings to $79 million, and maintains more than $800 million in cash and cash equivalents at the holding company, carries nearly $4 billion of cash and cash equivalents in its operating companies, and maintains substantial credit facilities.