Europeans thinking anew about insurance Genworth sells [Richmond Times-Dispatch, Va.]

May 13--There's nothing like a slow economy to get you thinking, and that's what Genworth Financial Inc. Chairman and Chief Executive Michael D. Fraizer thinks is happening in Europe these days.

Europe has seen higher unemployment and slower progress from the slump than the U.S. and, most recently, has been shaken by the financial troubles of Greece.

And the continent's troubles are making Europeans think anew about the life, disability, sickness and unemployment -- insurance Genworth sells. "It's a teachable moment," Fraizer said after yesterday's annual shareholders meeting.

In good times, people tend to figure they don't need those kinds of "lifestyle protection" policies, he said. In harder times, they see value in them that they hadn't noticed before.

Genworth's European business has been slower than its other overseas operations in recent months, but all its overseas operations point to a key strength of the company -- its international diversification, Fraizer told stockholders.

Now, Henrico County-based Genworth is adjusting prices and terms of its European insurance, and Fraizer said he sees good potential for growth there.

The company's strong results from its mortgage insurance businesses in Australia and Canada helped the company during what was a difficult time for U.S. and European financial services firms in 2009, Fraizer said.

Fraizer said he expects Genworth's U.S. mortgage insurance business to return to profitability over the next several quarters. He said Genworth expects the mortgage insurance operation to be consistently profitable by the middle of 2011.

One reason is tighter standards for issuing coverage -- but another is the company's aggressive efforts to help homeowners find alternatives to foreclosure, Fraizer said. Genworth has helped about 30,000 families stay in their homes in 2009 and so far this year, he said.

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Contact David Ress at (804) 6496051 or [email protected].

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