Genworth to Lay Off About 70 Employees in US Life, Information Technology Operations
May 11, 2012 by Fran Matso Lysiak
Best’s News Service – May 09, 2012 01:57 PM
RICHMOND, Va. – Mortgage and life insurer Genworth Financial Inc. is laying off about 70 employees in Virginia who work in its U.S. life insurance and information technology organizations.
The organizational changes “are designed to drive cost efficiencies within U.S. life insurance, as well as move our technological capabilities deeper within the businesses and closer to the customers we serve,” said Al Orendorff, a spokesman for the Richmond, Va.-based Genworth Financial (NYSE: GNW).
The layoffs involve “fewer than 40” employees in Richmond and “fewer than 30” in Lynchburg, Va., he said, noting they will receive help with their transition to other roles at Genworth or external opportunities.
The week of May 1, Michael D. Fraizer, who led Genworth through its initial public offering by General Electric in 2004, abruptly resigned as chairman of the board and CEO. Chief Financial Officer Martin P. Klein was named acting CEO, while James S. Riepe was named nonexecutive chairman (Best’s News Service, May 1, 2012).
Genworth “continues to actively hire and fill open positions throughout the company,” Orendorff said.
The company’s first-quarter net income declined 20% to $47 million on $36 million in losses on its mortgage insurance business in Australia but Klein said Genworth remains committed to working on ways to generate and manage capital.
On May 7, A.M. Best Co. affirmed the financial strength rating of A (Excellent) and issuer credit ratings of a of Genworth Life Insurance Co., Genworth Life Insurance Company of New York and Genworth Life and Annuity Insurance Co., the key life/health subsidiaries of Genworth Financial. A.M. Best also affirmed the ICR of bbb of Genworth and all of its existing debt ratings. The outlook for all ratings is negative (Best’s News Service, May 7, 2012).
On the early afternoon of May 9, Genworth Financial’s stock was trading at $5.59 a share, down 3.95% from the previous close. (By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com) BN-NJ-05-09-2012 1357 ET #
