On August 16, 2006, Genworth Financial announced it would stop writing new structured settlement business as of August 25, 2006.
Genworth Structured Settlement Underwriting Subsidiaries
The Genworth Life companies include:
- Genworth Life Insurance Company (formerly GE Capital Assurance Company
- Genworth Life Insurance Company of New York (formerly GE Capital Life Assurance Company of New York
- First Colony Life Insurance Company, and
- American Mayflower Life Insurance Company of New York.
Why is Genworth Exiting New Structured Settlement Business?
Attorneys, structured settlement recipients, and others should know that these companies aren’t going out of business—they’ve just decided to stop writing new structured settlement business.
Faced increased competition
Competition in the market has grown in recent years, and according to a news release from Paul Haley, Senior VP at Genworth Financial, the company feels it can no longer provide value or meet its targeted investment return at meaningful volumes.
Genworth companies have had a long standing structured settlement industry presence
- Although Genworth is a relatively new name, its companies have a longstanding presence as annuity issuers in the structured settlement industry, predating both the spin-off from GE Capital that formed Genworth and GE Capital’s acquisition of the two predecessor companies.
- Fifteen years ago, Lynchburg, VA-based First Colony Life was among the premier and most competitive structured settlement providers, with a 25-year history of issuing structured settlement annuities. While it is unfortunate to see markets exit the business—and there is hope that friends at Genworth will retain their positions—it is reassuring that management remains committed to its business plan, focusing on its existing portfolio and ensuring security for contract holders and policyholders across all lines of business.
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