AM Best Affirms Ratings of Genworth Financial, Inc. and Its Key Life/Health ... Benzinga
OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating ( FSR ) of A (Excellent) and issuer credit ratings (ICR) of “a” of Genworth Life Insurance Company (Wilmington, DE), Genworth Life Insurance Company of New York (New York, NY) and Genworth Life and Annuity Insurance Company , the key life/health subsidiaries of Genworth Financial, Inc. (Genworth) [NYSE:GNW]. Additionally, A.M. Best has affirmed the ICR of “bbb” of Genworth and all its existing debt ratings. The outlook for all ratings is negative. All companies are domiciled in Richmond, VA, unless otherwise specified. (Please see below for a detailed listing of the companies and debt ratings.)
These ratings reflect Genworth’s diversified business profile across multiple product lines, consistently favorable operating company liquidity and adequate risk-adjusted capital position. Over the last year, Genworth has strengthened its balance sheet by completing several capital raising initiatives, de-risking its product and investment portfolios and implementing improved risk management practices within its U.S. mortgage insurance business. The ratings acknowledge Genworth’s established presence in the term life, long-term care, retirement and wealth management markets. These product lines have traditionally provided excellent earnings diversification and complemented Genworth’s domestic and international mortgage insurance business as well as its lifestyle protection business during more favorable economic environments. Holding company liquidity is adequate to meet near-term debt repayments, and financial leverage remains within acceptable rating guidelines, although interest coverage has declined in recent years.
