A.M. Best has placed the financial strength rating of A-
(Excellent) and the issuer credit ratings (ICR) of “a-” of the key
life/health subsidiaries of Genworth Financial, Inc. (Genworth)
(Richmond, VA) [NYSE:GNW] under review with developing implications.
Additionally, the ICR of “bbb-” of Genworth and its existing debt
ratings have been placed under review with developing implications.
The actions follow Genworth’s statements during its first quarter 2015
earnings conference call that it is assessing market interest and
considering the merits of selling its life and annuity businesses. The
under review status reflects the ambiguity surrounding the structure and
components of a potential sale. Additionally, A.M. Best’s view of a
divestiture of businesses that provide both stable earnings and
diversification to the enterprise would likely be a credit negative.
Moreover, if a transaction is consummated, the impact of proceeds would
need to be considered.
A.M. Best anticipates that Genworth’s ratings will likely remain under
review until the completion of the company’s strategic review is
announced, or if a buyer for the life and/or annuity businesses is
identified.
For a complete listing of Genworth Financial, Inc. and its
subsidiaries’ FSRs, ICRs and debt ratings, please visit Genworth
Financial, Inc.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Best’s Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
-
Insurance Holding Company and Debt Ratings
-
Rating Members of Insurance Groups
-
Risk Management and the Rating Process for Insurance Companies
This press release relates to rating(s) that have been published on
A.M. Best's website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please visit A.M. Best’s Ratings
& Criteria Center.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS
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Copyright Business Wire 2015