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  • Writer's pictureIshfaaq Peerally

Genworth Financial 4Q21 Earnings Analysis


Genworth Financial Stock Analysis

Catalysts


  • Partial IPO of Enact generated $535 million for Genworth Financial, which they used to repay part of their debts, that is, $296 million of the AXA Promissory notes

  • Still owns 81.6% of Enact, currently valued at $2.96 billion

    • Rising demand for housing

    • Low Mortgage rate further increases demand for mortgages and consequently mortgage insurance

    • Asset price inflation - further increase in housing prices

  • Can buyback more debt, and possibly buyback shares and pay dividends


Risks


  • Rising mortgage rates

  • Emerging Housing bubble

  • Rising liabilities of Life Insurance Business

  • Most of the profits come from the US Mortgage Insurance Business

  • Low interest rates


Financial Analysis


Genworth Financial Stock Analysis

Genworth Financial Stock Analysis

Genworth Financial Stock Analysis

Genworth Financial Stock Analysis

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