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Fitch Places Genworth Life Insurance Company on Rating Watch Negative

^{Published on 2011-07-21 12:35:46 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Fitch Ratings has placed the 'A-' Insurer Financial Strength (IFS) ratings of Genworth Life Insurance Company, Genworth Life and Annuity Insurance Company and Genworth Life Insurance Company of New York (collectively, the Genworth life companies) on Rating Watch Negative. The 'A-' long-term ratings of the Genworth Global Funding Trusts are also placed on Rating Watch Negative.

The rating action follows the announcement that Genworth Financial Corporation (NYSE: GNW) expects to report an estimated net loss of $92 to $122 million in the second quarter of 2011, reflecting a reserve strengthening of approximately $300 million in its U.S. mortgage insurance business. Fitch had previously indicated in its affirmation of the Genworth life company ratings on Feb. 4, 2011 that further unexpected deterioration in the U.S. mortgage insurer results could result in a downgrade of the Genworth life company ratings.

Fitch will conduct a review of the Genworth life companies following the announcement of second quarter 2011 earnings to determine the expected effect, if any, on the Genworth life companies and expects to resolve the Rating Watch at that time. This will include an updated assessment of holding company credit quality and financial flexibility.

Fitch places the following rating on Rating Watch Negative:

Genworth Life Insurance Company;

Genworth Life and Annuity Insurance Company;

Genworth Life Insurance Company of New York;

--IFS 'A-';

Genworth Global Funding Trusts;

--Long-term rating 'A-'.

Additional information is available at '[ www.fitchratings.com ]'.

Applicable Criteria and Related Reserach:

--'Insurance Rating Methodology' (March 31, 2011);

--'Life Insurance Rating Methodology' (March 31, 2011);

--'Insurance Industry: Global Notching Methodology and Recovery Analysis' (March 31, 2011); and

--'Fitch's Approach to Rating Insurance Groups' (Dec. 14, 2010).

Applicable Criteria and Related Research:

Insurance Rating Methodology

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=614266 ]

Life Insurance Rating Methodology

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=612905 ]

Insurance Industry: Global Notching Methodology and Recovery Analysis

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=614265 ]

Fitch's Approach to Rating Insurance Groups

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=586765 ]

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