On May 25, 2004, GE sold off 30% of its interest in GEFA through an initial public offering. Genworth Financial, Inc. (Genworth) (Richmond, Va.) [NYSE: GNW] is the new brand name of the former life and mortgage businesses that went public as part of this transaction. Union Fidelity and Heritage Life Insurance companies were not part of the spinoff and will remain with GEFA.
Prior to completion of the offering, Genworth entered into a number of agreements with GE that govern its separation. This included several significant reinsurance agreements with Union Fidelity that consisted of structured settlement contracts with reserve of approximately $12 billion and certain variable annuity and long-term-care insurance contracts.
In addition, following the spinoff of the majority of its life and mortgage business, A.M. Best believes that these two remaining entities are now viewed as ancillary operations, which was formerly factored into the previous financial strength ratings. The revised financial strength ratings of A- (Excellent) reflect this status.