RICHMOND, Va., Jan. 9 /PRNewswire-FirstCall/ -- Genworth Financial Inc.
(NYSE: GNW) today announced a significant organizational repositioning to more
directly align high-growth international, mortgage insurance and retirement
and protection business opportunities. Genworth also announced that Patrick B.
Kelleher will join the company as senior vice president and chief financial
Kelleher will come to Genworth from Transamerica Reinsurance, where he
held a similar position since 1998, and was responsible for accounting,
controllership, corporate actuarial, and capital and risk management. He
previously held a variety of financial management positions at Manulife
Financial from 1992-1998 and at Sun Life from 1980-1992. He is a fellow in
the Society of Actuaries and a Canadian certified general accountant.
Under the reorganization, Genworth will have four business segments:
Retirement and Protection; International; U.S. Mortgage Insurance; and,
Corporate and Other.
The Retirement and Protection segment will be led by Pamela S. Schutz, and
both the International and U.S. Mortgage Insurance segments will be led by
Thomas H. Mann. Schutz and Mann have been promoted to be executive vice
presidents of Genworth.
"This reorganization demonstrates our ongoing commitment to strengthen and
better align our core business platforms for growth, efficiency and improving
returns," said Michael D. Fraizer, chairman and chief executive. "We are
pleased to have Pam Schutz and Tom Mann assume these expanded roles in order
to take our organization to a new level. We are also excited to have Pat
Kelleher join Genworth as CFO, bringing with him the business acumen and
experience to provide strong strategic leadership to our finance team."
George Zippel, former President of Genworth's Protection Segment, has
resigned his executive position and will leave the company following a
transition period. "George has been a key part of our team in taking Genworth
through the IPO and establishing it as a public company," said Fraizer. "I
would like to thank George for his contributions and wish him the best in his
The Retirement and Protection Segment will include the following
operations: retirement income, managed money, life insurance, long term care
insurance, and institutional. Genworth's employee benefits group business
will now report directly to the CEO.
The U. S. Mortgage Insurance segment will be led by Kevin Schneider, who
continues as president - U.S. Mortgage Insurance, reporting to Mann. On the
international front, two business unit heads will report to Mann: Robert J.
Brannock has been named president of European and Canadian operations; and
Brian L. Hurley has been named president of international development and
"We are making these strategic moves to better focus Genworth for the
future," Fraizer said. "We have a clear opportunity to advance our
competitiveness in key markets, and enhance our positioning as a global leader
providing financial security through facilitating home ownership, offering
lifestyle and longevity protection, helping people build retirement income and
providing related support services."
Fraizer reaffirmed Genworth's 2007 outlook for net operating earnings of
$3.15 to $3.25 per diluted share. No restructuring charge will occur at this
time, as the newly aligned businesses are undergoing cost studies to determine
greatest opportunities for improved efficiency and functional consolidation.
These studies are expected to be completed by the second quarter of 2007. The
new segmentation will be reported beginning with the first quarter of 2007,
and the company expects to provide comparable historical data and
organizational structure prior to that time.
"We have laid out a solid outlook for double-digit earnings per share
growth in 2007, and a path to achieving a 13-14 percent operating return on
equity by the 2010-2011 timeframe," said Fraizer. "These changes support and
accelerate our operating strategies by helping us better serve consumers,
penetrate and support distribution channels, leverage our capital markets
expertise and continue to drive efficiencies. We look forward to discussing
our new operating platforms in more detail with investors on our fourth
quarter conference call on February 2."
About Genworth Financial
Genworth 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 24 countries. For more
information, visit www.genworth.com.
Caution Concerning Forward-Looking Statements
This document 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
report 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
Use of Non-GAAP Measures
This press release includes the non-GAAP financial measure entitled "net
operating earnings." The company defines net operating earnings as net
earnings excluding after-tax net investment gains (losses), which can
fluctuate significantly from period to period, changes in accounting
principles and infrequent or unusual non-operating items. Management
believes that analysis of net operating earnings enhances understanding and
comparability of performance by highlighting underlying business activity and
profitability drivers. However, net operating earnings should not be viewed as
a substitute for GAAP net earnings. In addition, the company's definition of
net operating earnings may differ from the definitions used by other
companies. Due to the unpredictable nature of the items excluded from the
company's definition of net operating earnings, the company is unable to
reconcile its outlook for net operating earnings to net earnings presented in
accordance with GAAP.
This press release also references the non-GAAP financial measure entitled
"operating return on equity" or "operating ROE." The company defines operating
ROE as net operating earnings divided by average stockholders' equity,
excluding accumulated other comprehensive income (AOCI) in average
stockholders' equity. Management believes that analysis of operating ROE
enhances understanding of the efficiency with which the company deploys its
capital. However, operating ROE as defined by the company should not be viewed
as a substitute for GAAP net earnings divided by average stockholders' equity.
Due to the unpredictable nature of net earnings and average stockholders'
equity excluding AOCI, the company is unable to reconcile its outlook for
operating ROE to GAAP net earnings divided by average stockholders' equity.
SOURCE Genworth Financial Inc.
CONTACT: Investors, Alicia Charity, +1-804-662-2248,
Alicia.Charity@genworth.com, or Media, Philip Moeller, +1-804-662-2534,
Philip.Moeller@genworth.com, both for Genworth Financial Inc.
Web site: http://www.genworth.com