Fitch cuts Genworth Life to B+

Fitch Ratings said it downgraded the insurer financial strength ratings of Genworth Life Insurance Co. (GLIC) and Genworth Life Insurance Co. of New York (GLICNY) to B+ (weak) from BB (moderately weak) and removed them from rating watch evolving.

The outlook is negative.

The agency maintained the BB (moderately weak) insurer financial strength ratings of Genworth Life and Annuity Insurance Co. (GLAIC) on rating watch evolving.

Fitch said the actions follow a second extension of the closing deadline of a proposed acquisition of the insurers' parent, Genworth Financial Inc. (GNW), by China Oceanwide Holdings Group Co. Ltd.

“Fitch believes the continued delay increases the uncertainty as to whether the proposed transaction will be approved. With less certainty that the merger will be completed, the ratings of GLIC and GLICNY were downgraded to reflect ongoing concerns regarding the adequacy of their recorded LTC reserves, which is highly dependent on assumptions regarding future rate increases,” the agency said in a news release.

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