A.M. Best Places Ratings of Two Genworth Subsidiaries Under Review With Positive Implications.OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength ratings of A (Excellent) and the issuer credit ratings of "a" of Genworth Life and Health Insurance Company (Genworth L&H) (Windsor, CT) and Professional Insurance Company (Professional) (Frisco, TX) under review with positive implications. These rating actions follow Sun Life Financial Inc.'s (Sun Life) (Toronto, CA) [NYSE NYSE See: New York Stock Exchange :SLF SLF Super Low Frequency (30-300 Hz; 10,000-1,000 km) SLF Self SLF Statens Landbruksforvaltning (Norwegian Agricultural Authority) SLF Sveriges Läkarförbund SLF Saalfeld ] announcement that it has reached an agreement to purchase the U.S. group benefits business of Genworth Financial Genworth Financial is an international financial services organization that offers a portfolio of primarily consumer-focused products through its various companies, including annuities, combination products, investment services, life insurance, long term care insurance, medicare Inc. (Genworth) (Richmond, VA) [NYSE:GNW GNW Genworth Financial (stock symbol) GNW Good News Week (TV show) GNW Great Northwest GNW Great Northern War (1700-1721) GNW Guns 'n' Wankers (band) ], which includes Genworth L&H and Professional and other group related entities for approximately USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 650 million. The ratings of Sun Life and Genworth's key subsidiaries are unchanged by this pending transaction. Genworth L&H provides life, accidental death and dismemberment dismemberment /dis·mem·ber·ment/ (dis-mem´ber-ment) amputation of a limb or a portion of it. dismemberment amputation of a limb or a portion of it. , dental, disability, stop loss and fully insured medical to the small to mid-sized group market. Professional provides supplemental health and term life products to the small to mid-sized group market as well as government organizations. The group business was found not to be a core operation to Genworth following its recently announced restructuring of its business segments. The sale proceeds will most likely be used for capital actions such as share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. , acquisitions or dividends. A.M. Best expects this acquisition will increase the scale of Sun Life's U.S. group business and complement Sun Life's existing product offerings. The addition of Genworth's distribution network is expected to bolster Sun Life's group insurance growth strategy in the United States. The transaction will be financed from existing capital. The ratings of Genworth L&H and Professional will remain under review pending further discussions with Sun Life regarding the strategic fit for the legal entities within the U.S. operations and the capitalization plans for the respective companies. This transaction is expected to close in second quarter 2007, pending regulatory approval. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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