DOW JONES NEWSWIRES Genworth Financial Inc. (GNW) said Thursday it would cut 1,000 jobs, or about 14% of its global work force, to boost its cost and capital positions.
The job cuts and other moves are expected to reduce operating expenses by $100 million to $150 million a year by the end of 2009.
The insurance and financial-services company expects to record a $45 million charge in the fourth quarter for severance, outplacement and other costs related to the job cuts and other restructuring.
Genworth saw its credit ratings cut last month after it suspended its dividend and share-repurchase plan and contributed $500 million to its life-operating companies from the holding-company level.
The company also is considering asset sales, raising equity or debt capital and reviewing its U.S. mortgage-insurance business as it cuts costs.
On Thursday, Genworth predicted its life companies' risk-based capital ratio for year-end 2008 would be at or above 360%. It also said that at the holding-company level, it has repurchased $302 million of its $1.1 billion senior debt scheduled to mature in the first half of 2009.
Last month, Genworth said it swung to a third-quarter net loss on investment losses and a 25% drop in revenue.
Genworth and other mortgage insurers have been hurt by rising defaults amid an unprecedented decline in U.S. housing prices. Mortgage-insurance policies cover losses when borrowers default and lenders are unable to recover their losses.
Genworth's shares were at $3.41, up 2.1%, in after-hours trading. They have fallen 87% in the past year.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com
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Publié le 18 Décembre 2008 Copyright © 2008 Dowjones