Boston, MA 03/24/2014 (wallstreetpr) – Genworth Financial Inc (NYSE:GNW) has been upgraded by Moody by one level to Ba1 in the mortgage insurance division. This change in financial rating indicates strength coming back in the long term care insurance industry and mortgage insurance division. Genworth has stayed as one of the important financial security companies in Fortune 500 with a presence in more than 25 countries
The future ahead
The sector has witnessed turbulent times after the financial crisis of 2008. But Genworth Financial Inc (NYSE:GNW) has managed to expand its business significantly in the mortgage insurance division and has become a global leader in managing mortgage default risk. Continuing with the same strategies GNW is thinking to bring an initial public offering this year in Australia where it will sell a minority stake in its Australia mortgage insurer division. The final decision will be made in consideration with the other factors like the state of the market, economy, fulfilment of pending regulations and others. Apart from Australia GNW has its good hold in home loans sector in Canada also.
The present picture
The consideration of bringing the initial public offering is the outcome of the good results posted by GNW. There has been a significant rise in the profits from insuring U.S. mortgages. The company has posted operating profit of $6 million at its U.S. mortgage insurer in the fourth quarter. The future prospects are looking quite good as it is a complete turnover from the performance of last few years. The growth is expected to continue in U.S. mortgage insurer in the year 2014.
The strength
The mortgage guarantee is a boon for the mortgage insurer companies as it now provides a cushion to protect them in the event of mortgage borrower defaults on a loan. They have the required resource in hand which can help them to get the amount overdue easily when the proceeds of the sale of the property fall short to pay the outstanding debt. Rising rates for home loans and the backing mortgages used to purchase homes are the two important factors helping Genworth Financial Inc (NYSE:GNW) to come out of the dark shadows of the financial crisis.
