Genworth Financial - Believe It When You See It

Genworth Financial – Extending and Pretending Again

MergerTalk: China Oceanwide/Genworth Update-The Wealth Spread

MergerTalk: Genworth Financial Holdings (GNW US) Update-Assessing The Risk-Reward Proposition

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

Genworth Financial Inc Cl A / Equity Bottom-Up

*Poor Result Despite Mortgage Unit Gains: After the market close, Genworth Financial (GNW.US) [Genworth] reported 2Q20 adjusted earnings per share loss of USD 0.04, which was worse than consensus of USD 0.03 per share;* AXA Settlement Increases Risk: Post-2Q20, Genworth announced that it had agreed to a settlement with AXA (AXA.FP). Under the terms of the settlement, Genworth has agreed to pay AXA approximately USD 521 mn, with USD 125 mn payable on July 23, 2020 and the balance deferred to 2022. As such, post payment the stated USD 554 mn in cash on Genworth’s balance sheet dwindles by USD 125 mn or 22.5% to USD 429 mn, while restricted cash amounts to USD 59mm. Unfortunately, there appears to be no mention of a liability cap on AXA’s future PPI losses; and*China Oceanwide Wasting Time: Genworth’s transaction with China Oceanwide (715.HK) appears increasingly in doubt following the 15th extension on June 30, 2020 due to China Oceanwide’s continued inability to fund this transaction. China Oceanwide is required to provide evidence of deal funding by August 31st.

*Poor Result Despite Mortgage Unit Gains: After the market close, Genworth Financial (GNW.US) [Genworth] reported 2Q20 adjusted earnings per share loss of USD 0.04, which was worse than consensus of USD 0.03 per share;* AXA Settlement Increases Risk: Post-2Q20, Genworth announced that it had agreed to a settlement with AXA (AXA.FP). Under the terms of the settlement, Genworth has agreed to pay AXA approximately USD 521 mn, with USD 125 mn payable on July 23, 2020 and the balance deferred to 2022. As such, post payment the stated USD 554 mn in cash on Genworth’s balance sheet dwindles by USD 125 mn or 22.5% to USD 429 mn, while restricted cash amounts to USD 59mm. Unfortunately, there appears to be no mention of a liability cap on AXA’s future PPI losses; and*China Oceanwide Wasting Time: Genworth’s transaction with China Oceanwide (715.HK) appears increasingly in doubt following the 15th extension on June 30, 2020 due to China Oceanwide’s continued inability to fund this transaction. China Oceanwide is required to provide evidence of deal funding by August 31st. 

Pennymac Mortgage Investment Trust (PMT US)

ジェンワース・ファイナンシャル – 大規模な経営幹部向け印刷物、不確実性は続く