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Genworth Financial Announces Business Realignment and Names Patrick B. Kelleher CFO; Promotes Mann and Schutz to Executive Vice Presidents


RICHMOND, Va., Jan. 9 /PRNewswire-FirstCall/ -- Genworth Financial Inc. (NYSE: GNW) today announced a significant organizational repositioning to more directly align high-growth international, mortgage insurance and retirement and protection business opportunities. Genworth also announced that Patrick B. Kelleher will join the company as senior vice president and chief financial officer.

Kelleher will come to Genworth from Transamerica Reinsurance, where he held a similar position since 1998, and was responsible for accounting, controllership, corporate actuarial, and capital and risk management. He previously held a variety of financial management positions at Manulife Financial from 1992-1998 and at Sun Life from 1980-1992. He is a fellow in the Society of Actuaries and a Canadian certified general accountant.

Under the reorganization, Genworth will have four business segments: Retirement and Protection; International; U.S. Mortgage Insurance; and, Corporate and Other.

The Retirement and Protection segment will be led by Pamela S. Schutz, and both the International and U.S. Mortgage Insurance segments will be led by Thomas H. Mann. Schutz and Mann have been promoted to be executive vice presidents of Genworth.

"This reorganization demonstrates our ongoing commitment to strengthen and better align our core business platforms for growth, efficiency and improving returns," said Michael D. Fraizer, chairman and chief executive. "We are pleased to have Pam Schutz and Tom Mann assume these expanded roles in order to take our organization to a new level. We are also excited to have Pat Kelleher join Genworth as CFO, bringing with him the business acumen and experience to provide strong strategic leadership to our finance team."

George Zippel, former President of Genworth's Protection Segment, has resigned his executive position and will leave the company following a transition period. "George has been a key part of our team in taking Genworth through the IPO and establishing it as a public company," said Fraizer. "I would like to thank George for his contributions and wish him the best in his future endeavors."

The Retirement and Protection Segment will include the following operations: retirement income, managed money, life insurance, long term care insurance, and institutional. Genworth's employee benefits group business will now report directly to the CEO.

The U. S. Mortgage Insurance segment will be led by Kevin Schneider, who continues as president - U.S. Mortgage Insurance, reporting to Mann. On the international front, two business unit heads will report to Mann: Robert J. Brannock has been named president of European and Canadian operations; and Brian L. Hurley has been named president of international development and Australian operations.

"We are making these strategic moves to better focus Genworth for the future," Fraizer said. "We have a clear opportunity to advance our competitiveness in key markets, and enhance our positioning as a global leader providing financial security through facilitating home ownership, offering lifestyle and longevity protection, helping people build retirement income and providing related support services."

Fraizer reaffirmed Genworth's 2007 outlook for net operating earnings of $3.15 to $3.25 per diluted share. No restructuring charge will occur at this time, as the newly aligned businesses are undergoing cost studies to determine greatest opportunities for improved efficiency and functional consolidation. These studies are expected to be completed by the second quarter of 2007. The new segmentation will be reported beginning with the first quarter of 2007, and the company expects to provide comparable historical data and organizational structure prior to that time.

"We have laid out a solid outlook for double-digit earnings per share growth in 2007, and a path to achieving a 13-14 percent operating return on equity by the 2010-2011 timeframe," said Fraizer. "These changes support and accelerate our operating strategies by helping us better serve consumers, penetrate and support distribution channels, leverage our capital markets expertise and continue to drive efficiencies. We look forward to discussing our new operating platforms in more detail with investors on our fourth quarter conference call on February 2."

About Genworth Financial

Genworth is a leading insurance holding company, serving the lifestyle protection, retirement income, investment and mortgage insurance needs of more than 15 million customers, and has operations in 24 countries. For more information, visit

Caution Concerning Forward-Looking Statements

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to our plans, objectives, expectations and intentions and other statements contained in this report that are not historical facts as well as statements identified by words such as "expects," "anticipates," "intends," plans," "believes," "seeks," "estimates," or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.

Use of Non-GAAP Measures

This press release includes the non-GAAP financial measure entitled "net operating earnings." The company defines net operating earnings as net earnings excluding after-tax net investment gains (losses), which can fluctuate significantly from period to period, changes in accounting principles and infrequent or unusual non-operating items. Management believes that analysis of net operating earnings enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. However, net operating earnings should not be viewed as a substitute for GAAP net earnings. In addition, the company's definition of net operating earnings may differ from the definitions used by other companies. Due to the unpredictable nature of the items excluded from the company's definition of net operating earnings, the company is unable to reconcile its outlook for net operating earnings to net earnings presented in accordance with GAAP.

This press release also references the non-GAAP financial measure entitled "operating return on equity" or "operating ROE." The company defines operating ROE as net operating earnings divided by average stockholders' equity, excluding accumulated other comprehensive income (AOCI) in average stockholders' equity. Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE as defined by the company should not be viewed as a substitute for GAAP net earnings divided by average stockholders' equity. Due to the unpredictable nature of net earnings and average stockholders' equity excluding AOCI, the company is unable to reconcile its outlook for operating ROE to GAAP net earnings divided by average stockholders' equity.

SOURCE Genworth Financial Inc.
CONTACT: Investors, Alicia Charity, +1-804-662-2248,, or Media, Philip Moeller, +1-804-662-2534,, both for Genworth Financial Inc.
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