Continues Company Focus on Leadership Positions in Key Business Lines
RICHMOND, VA (January 6, 2011) – As part of ongoing refinement of its business strategies, Genworth Financial, Inc. (NYSE: GNW) today announced key changes to annuity products in its Retirement and Protection segment. It is discontinuing new sales of retail variable annuities and group variable annuities. Genworth continues to provide fixed annuities as well as other leading offerings, including life insurance, long term care insurance and wealth management.
In addition, Genworth is suspending sales of one type of linked benefit offering – which combines annuities and long term care insurance – until that market develops further. The company continues to offer linked benefit products that combine life and long term care insurance.
Current holders of Genworth annuity contracts will not be affected.
Genworth expects to record a pre−tax charge of approximately $12 million in the first quarter of 2011 for severance, outplacement support to assist affected employees during the transition, and other costs associated with this action.
“With this decision, we have taken an additional step in advancing our specialist strategy to concentrate on the markets, customers and products where we have distinct leadership positions and strengths,” said Michael D. Fraizer, chairman and chief executive officer. “Looking ahead, Genworth continues to help people meet their financial security needs by focusing on key protection, wealth accumulation and mortgage insurance offerings across its businesses.”
About Genworth Financial
Genworth Financial, Inc. (NYSE:GNW) is a leading Fortune 500 global financial security company. Genworth has more than $100 billion in assets and employs approximately 6,000 people with a presence in more than 25 countries. Its products and services help meet the investment, protection, retirement and lifestyle needs of more than 15 million customers. Genworth operates through three segments: Retirement and Protection, U.S. Mortgage Insurance and International. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit Genworth.com. From time to time Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of Genworth.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to our plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts as well as statements identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.
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