RICHMOND, Va., Dec. 14, 2017 /PRNewswire/ -- Genworth Financial, Inc. (NYSE: GNW) (Genworth) today announced that its majority owned subsidiary, Genworth Mortgage Insurance Australia Limited (GMA), issued a press release reporting that it had finalized its annual review of the premium earning pattern or earnings curve. GMA will modify the premium earning pattern in line with the conclusions of this review. As a result, the change, in the aggregate, will lengthen the average duration of the period over which GMA recognizes its revenue, but it does not affect the total amount of revenue earned over time from premiums already written. GMA included in its press release the estimated impact of the modification on its fourth quarter financial results, including minimal impact to its regulatory solvency ratio, as well as resulting changes to its 2017 full year outlook.
Genworth continues to review the financial impact of GMA's modified earning pattern on its consolidated financial statements under U.S. generally accepted accounting principles (GAAP). Genworth's treatment of GMA's modified earnings pattern under U.S. GAAP may be different than GMA's treatment under Australian GAAP with the result that the financial impact to Genworth may be materially different than that recognized by GMA. Genworth expects to announce its conclusion with its results for the fourth quarter of 2017.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com. From time to time, Genworth's publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found at http://genworth.ca and http://www.genworth.com.au.
Cautionary Note Regarding Forward-Looking Statements
This communication includes certain statements that may constitute "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements regarding future financial results of Genworth and Genworth Mortgage Insurance Australia Limited. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements and factors that may cause such a difference include, but are not limited to, risks and uncertainties related to: (i) different accounting treatment and (ii) other risks and uncertainties described in Genworth's Annual Report on Form 10-K, filed with the SEC on February 27, 2017. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Genworth's consolidated financial condition, results of operations, credit rating or liquidity. Accordingly, forward-looking statements should not be relied upon as representing Genworth's views as of any subsequent date, and Genworth does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
SOURCE Genworth Financial, Inc.