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Genworth has been doing just fine since its birth as an independent company. More flexible and innovative now, the insurance giant is expanding overseas and boosting financial performance.
by Peter Galuszka
Working under management maven Jack Welch can try the soul of any corporate executive. The General Electric chairman was famous for setting high performance measures for company profit centers. Company divisions were expected to generate returns on equity (ROE) of 20 percent or higher. Managers who couldn’t keep up faced an unpleasant visit with Welch... or worse.
And that may be the best thing that ever happened to GE Financial, now Genworth. The management philosophy that worked for refrigerators, aircraft engines and broadcast television didn't necessarily translate well into insurance products. Since emerging as an independent firm nearly two years ago, Genworth has boosted ROE from about nine percent to a predicted 10.7 percent this year.
In a flat stock market, Genworth's stock price has climbed from $19.50/share at its Initial Public Offering in the spring of 2004 to the low $30/share-level today. In November, ratings service Standard & Poor’s announced that Genworth was replacing California-based energy company Calpine Corp. on its famed S&P 500 index of select companies.
Genworth has achieved a number of milestones in those two years, the most daunting of which was establishing a new identity. The old-line insurance company has completely re-branded itself in an advertising market where insurance services are highly saturated. Progress so far has been good. More.
Top Business News...
Genworth Acquires Continental Life for $145 Million Genworth Financial has entered into an agreement to
acquire Continental Life Insurance Company of "The acquisition of Continental Life is a natural addition for Genworth Financial, given our strategy of serving the fast-growing senior markets with multiple products," said George Zippel, president and CEO of the company's Protection Segment. (Jan. 20, 2006) More.
Gilbert-Krupin Expands to Richmond
Gilbert-Krupin, a Beverly Hills, Calif.-based insurance firm serving athletes, entertainers and other high net-worth individuals, has opened an office in Richmond to better serve its more than 1,000 clients on the East Coast. The company recruited Barry Myers, who had been employed with a local insurance firm, to run the office.
Said Partner Mike Krupin: "We are very excited to reconnect and get back into the Richmond market where my original practice began. Barry Myers and I have known and worked with each other since 1979 and he is a welcome addition to our firm." (Dec. 19 2005) More.
Zutz
Struts its Stuff Hilb Rogal & Hobbs Company, the world's tenth largest insurance and risk management intermediary, has agreed to buy the stock of Zutz Associates, Inc., Delaware's largest independently-owned insurance agency. Zutz generated 2005 revenues of $11.3 million and premium volume of $100 million. (Feb. 23, 2005) More.
Hilb
Rogal Buys The Welch Company Hilb Rogal & Hobbs Company has acquired the
operating assets of The Welch Company, an employee benefits
firm in Houston, Tex., with 2005 revenues
of approximately $900,000. Said HRH CEO Martin L. (Mell) Vaughan, III: “Our
partnership with Welch will enhance our employee benefits
capabilities in our Houston
branch and increase the Welch employees' geographic presence
to a national level. (March 2, 2005) More. TIMCOR Exchange Opens
Richmond
Office The TIMCOR Exchange Corporation, a
subsidiary of Commercial Capital Bancorp, has opened a
regional office in Richmond. TIMCOR, based in Irvine, Calif.,
facilitates tax-deferred
exchanges pursuant to Section 1031 of the Internal Revenue
Code. (Feb. 9, 2006) More.
Earnings...
Genworth 2005 Earnings up 5 Percent
Genworth Financial, Inc., has reported 4Q net earnings of $307 million, down from $346 million the same quarter the previous year. But earnings for the entire year were $1,221 million, compared to $1,157 for 2004. Said CEO Michael D. Fraizer: "Genworth's strong performance … is a testament to our execution focus and growth strategies. We have continued to effectively generate and redeploy capital, delivering solid improvement in our operating return on equity." (Jan. 26, 2006) More.
Markel Earnings Battered by Hurricanes
Markel Corporation has reported net income of $14.80 per share for the 4Q of 2005, down from $16.41 in the same quarter the year before. That includes $246.3 million in losses related to Hurricanes Katrina, Rita and Wilma, compared to Hurricane-related losses of $79.8 million the year before (Jan. 25, 2006) More.
Hilb Rogal Reports Strong Quarter
Hilb Rogal & Hobbs Company has reported net income of $19.5 million in the 4Q of 2005, up from $15.3 million the same quarter a year before. CEO Martin L. (Mell) Vaughan, III, expressed optimism for continued improvement: “We [have] welcomed to HRH an unprecedented number of insurance brokerage executives and professionals. Although we know it will take 12 to 24 months for these new additions to become fully productive, we believe this ... provides a once-in-a-generation opportunity to strengthen HRH's prospects for sustaining long-term growth.” (Feb. 22, 2006) More.
Dynex Bleeds Red Ink in 4Q
Dynex Capital, Inc., has reported a net loss to common shareholders of $382,000 in the quarter ended December 31, 2005, down from a $13.7 million profit for the same quarter the previous year. Said Chairman Thomas B. Akin: "Our results for the fourth quarter and full year 2005 continue to reflect our current conservative investment strategy. Given that the yield curve is now inverted, we have been and will continue to be cautious in our investment activities, electing to forego deploying investment capital in meaningful amounts.” (March 1, 2006) More.
Saxon Delays 4Q Earnings Release
Saxon Capital, Inc., a residential mortgage lending and servicing real estate investment trust (REIT), has delayed release its 4Q and year-end earnings results. Management is reviewing its accounting of derivative transactions used in its interest-rate hedging strategy. (Feb 28, 2006) More.
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Business Harris
Williams Launches Transportation and Logistics Group.
Harris Williams
& Co., an investment banking firm serving mid-cap
companies, has launched a dedicated Transportation &
Logistics Group. Bram Hall, Director of Harris Williams
& Co., will head the firm’s efforts in the sector.
Said Hall: “We have closed numerous deals within this
category already, and believe there is potential for
significant future growth with a dedicated effort.” (Feb.
28, 2006) More.
Genworth Introduces Fixed Indexed Annuity. Genworth Financial, Inc. has introduced the SecureLiving Classic Indexed Annuity for investors seeking to protect principal while achieving tax-deferred growth. Said executive Pam Schultz: "There are more than 240 index products on the market today with lots of moving parts and complexity. … We've designed a simpler product.." (Feb. 15, 2006) More. Harris
Williams Opens Genworth Lands Paychex 401 (k) Plan. Paychex, Inc., has selected Genworth Financial’s ClearCourse as an investment option for its 401(k) plan. Paychex has more than 10,000 employees and current 401(k) plan assets of over $400 million. (March 6, 2006) More. Saxon’s Retail Business Takes New Name. Saxon Capital, Inc. has begun conducting retail business under the trade name, "Saxon Home Mortgage." Said Saxon executive James V. Smith: "This name change is an important step in the company's continuing effort to restructure its direct-to-consumer lending platform.” (Jan. 5, 2006) More. People Wachovia Securities Taps Connelly. Wachovia Securities has hired Marge Connelly as COO and president of the Business Services Group, effective April 3. Connelly, who comes from a senior position at Capital One, will serve on Wachovia Securities’ senior executive panel. (March 9, 2006) More. Hays to Head Wachovia Securities Private Client Group. James E. Hays has been named president of the Wachovia Securities Private Client Group, succeeding James T. Donley. Hays, who had served as managing director of Merrill Lynch’s Private Banking and Investment Group, will oversee some 6,000 financial advisors nationwide. (Dec. 15, 2005) More. Delaney to Direct Wachovia Securities Operations. Wachovia Securities has appointed Linda A. Delaney as the brokerage firm's director of operations and head of the Broker Services and Support Group with senior responsibility for critical operations, processing and corporate support functions. (Jan. 19, 2006) More.
SunTrust
Mortgage Rakes in Reed.
SunTrust
Mortgage, Inc., has named Anthony "Tuck" Reed as
executive vice president and head of secondary marketing,
overseeing all aspects of SunTrust Mortgage's capital
markets operation. ( BB&T
Hires Chemical Analysts.
BB&T
Capital Markets has hired a renowned team of New York
City-based equity analysts led by Frank Mitsch to cover the
chemicals industry. ( Genworth
Names Chief Risk Officer.
Genworth
Financial, Inc has named Samuel D. Marsico senior vice
president and chief risk officer (CRO). He will oversee more
than 150 professionals dedicated to risk management across
Genworth. (
Hilb
Rogal Appoints New Controller.
Hilb
Rogal & Hobbs Company has appointed John (Jack) Hamerski
to the position of vice president and controller, succeeding
Rob Blanton. Hamerski joins HRH from Inyx, Inc., a specialty
pharmaceutical company.
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