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Genworth Financial to Cooperate With SEC Loss Mitigation Insurance Product Investigation

RICHMOND, Va., May 12 /PRNewswire-FirstCall/ -- Genworth Financial, Inc. today said that it received a subpoena from the United States Securities and Exchange Commission on May 11, 2005 seeking documents relating to "certain loss mitigation insurance products." Genworth intends to fully cooperate with the SEC's request. Genworth understands that a number of other insurance and reinsurance companies have received similar subpoenas from the SEC.

Genworth conducted an initial review of its reinsurance arrangements early in the fourth quarter of 2004 and did not identify issues of concern. In light of recent market events, the evolving nature of insurance industry examinations, as well as the receipt of the subpoena, Genworth will continue its review as it cooperates with the SEC.

About Genworth Financial

Genworth (NYSE: GNW) is a leading insurance holding company, serving the lifestyle protection, retirement income, investment and mortgage insurance needs of more than 15 million customers, and has operations in 22 countries, including the U.S., Canada, Australia, the U.K. and more than a dozen other European countries. For more information, visit http://www.genworth.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company's future business and financial performance. Forward- looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors, including the following:

  • Risks relating to the company's businesses, including interest rate fluctuations, downturns and volatility in equity markets, defaults in portfolio securities, downgrades in the company's financial strength and credit ratings, unexpected changes in mortality and morbidity rates, accelerated amortization of deferred acquisition costs and present value of future profits, impairment of the value of goodwill, failure of demand for long-term care insurance to increase as expected, decreases in the volume of mortgage originations, increases in mortgage insurance cancellations, increases in the use of captive reinsurance in the mortgage insurance market, the influence of large mortgage lenders and investors, foreign exchange rate fluctuations, insufficiency of reserves, legal constraints on dividend distributions by subsidiaries, illiquid investments, competition, inability to attract or retain independent sales intermediaries and dedicated sales specialists, defaults by counterparties, regulatory restrictions on the company's operations, changes in applicable laws and regulations, legal or regulatory actions or investigations and increased regulatory scrutiny into some aspects of the company's operations, political or economic instability and the threat of terrorism; and

  • Risks relating to the company's separation from GE, including the loss of benefits associated with GE's brand and reputation, the company's need to establish the new Genworth brand identity quickly and effectively, the company's inability to present financial information in SEC filings that accurately represents the results the company would have achieved as a stand-alone company, the possibility that the company will not be able to replace services previously provided by GE on comparable terms, uncertainty of amounts and timing of payments that the company has agreed to make to GE under the company's Tax Matters Agreement and other matters relating to that agreement, potential conflicts of interest with GE and GE's engaging in the same type of business as the company does in the future.

The company undertakes no obligation to publicly update any forward- looking statement, whether as a result of new information, future developments or otherwise.

SOURCE Genworth Financial, Inc.

CONTACT: Investors: Jean Peters, +1-804-662-2693, jean.peters@genworth.com, or Alicia Charity, +1-804-662-2248, alicia.charity@genworth.com; or Media: Mike Kachel, +1-804-662-2534, mike.kachel@genworth.com, all of Genworth Financial, Inc.