Genworth Financial (GNW) 1Q14 Executing and Getting Stronger

Genworth Financial (GNW) reported 1Q14 earnings on April 29, 2014 [Source] The company reported net income of $184 million, or $0.37 per diluted share, compared with net income of $103 million, or $0.21 per diluted share, in the first quarter of 2013 for a 79% year over year improvement. The 1Q14 net operating income was […]

Genworth Financial (GNW) Long Term Care Looks Good

As you recall we invested in Genworth when their two primary business units; U.S. mortgage insurance and long term care (LTC) insurance were performing poorly. The housing crisis and escalating long term care costs raised questions about the viability of the company’s main business lines. Our investment thesis [Source] centered on a turnaround that was […]

Genworth Financial (GNW) Update and 3Q13 Results

Genworth Financial (GNW) reported 3Q13 earnings on October 29 [Source] and held their earnings conference call the following morning. Results are good and the prospects for continued improvement are encouraging. The stock traded down after headlines like Bloomberg’s “Genworth’s Profit Surges as U.S. Mortgage-Unit Results Improve” and Associated Press “Genworth Financial profits more than triple”. The […]

Genworth Financial (GNW) Reports 1Q13 Results

Genworth Financial (GNW) reported 1Q13 earnings on April 30, 2013 [Source]. At the fourth quarter 2012 earnings release we described Genworth as “a work in progress” this quarter it is more about “progress in works”. Reported results are good and considering the fundamental progress behind the scenes for the future, the results are excellent. Our thesis […]

Genworth (GNW) Announces Sale of Wealth Management Business

In February 2013 Genworth (GNW) named CFO Martin Klein executive vice  president. Adding to the ongoing CFO duties his new role is responsible for, among other duties, positioning the non-core International Protection’s and Wealth Management units’ for eventual sale as outlined in the strategic plan.  We commented at the time that, “It is encouraging to see […]

Genworth (GNW) Takes Further Action on Turnaround

Our Genworth Investment Thesis [Source] noted a lot of moving parts both at the company and macroeconomic level; “the company will likely continue selling at a discount pending further resolution of the many issues that need to be monitored. However, it seems turnaround is underway on both a macro and micro level but largely overlooked […]

Genworth (GNW) Announces Resourceful Capital Plan

This plan is resourceful and a significant catalyst for appreciation in the months to come. The plan utilizes the undervalued assets of the company to address rating agency concerns and preserve the still to be recognized value for existing shareholders. The News Release in Part [Source]: Genworth Financial (GNW) announced today a comprehensive capital plan for […]

Genworth (GNW) Investment Thesis: Part I What went wrong?

Genworth Financial, Inc. (GNW): Genworth Financial, Inc. (GNW) provides insurance and financial management in the United States and internationally including fixed annuity products, life and long-term care insurance; payment protection; and mortgage insurance to insure residential mortgage loans. With more than 15 million customers in 25 countries the company was spun off from General Electric, Inc. […]

Genworth (GNW) Investment Thesis: Part II Turnaround and Valuation

In Genworth (GNW) Investment Thesis: Part I we discussed what led to the collapse in the share price and why it is still trading at a huge discount to intrinsic value. The central question: is this deep discount justified or is it a value investing opportunity created by past worries, fear and excessive pessimism? To […]