Genworth Changes Management of Investment, Mortgage Insurance Businesses

RICHMOND, Va., Jun 20, 2008 (A. M. Best via COMTEX) -- GNW | Quote | Chart | News | PowerRating -- Multiline insurer Genworth Financial Inc. said Chief Investment Officer Mark Griffin is leaving the company ?to pursue other career interests.? The company had reported significant losses in its investment portfolio in April.

The Richmond, Va.-based insurer made several management changes ?to enhance growth, improve competitiveness and simplify operations,? Chief Executive Officer Michael D. Fraizer said in a statement.

Dan Sheehan, currently senior vice president of portfolio management, will serve as acting chief investment officer.

Genworth?s U.S. mortgage insurance unit now will report directly to Fraizer. Thomas Mann, an executive vice president who had supervised U.S. mortgage insurance and international operations, will focus on the international business.

Vic Moses, 60, senior vice president for Actuarial and Risk, will retire on Oct. 1, 2008, Genworth (NYSE: GNW | Quote | Chart | News | PowerRating) said. The actuarial function will report to Pat Kelleher, senior vice president and chief financial officer, while the risk management function will report directly to the Fraizer.

Efforts to obtain comment from the company were not immediately successful.

Genworth, a life, long-term-care and mortgage insurer, was hit in April with a 64.2% decrease in first-quarter net income, to $116 million. It suffered significant investment losses, including $121 million of impairments of which $75 million were related to subprime and Alt-A residential mortgage and asset-backed securities, and $13 million of hedging ineffectiveness on income distribution series products. The mortgage insurance unit also produced poor results in the quarter (BestWire, April 24, 2008.)

Genworth Life and Annuity Insurance Co. currently has a Best?s Financial Strength Rating of A+ (Superior).

Shares of Genworth Financial were trading at $19.30 in afternoon trading on June 20, down 2.9% from the previous close.

(By Alyn Ackermann, senior associate editor, BestWeek: Alyn.Ackermann@ambest.com)

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