GNW: Genworth Financial Names Cheryl C. Whaley to Lead Expanded Capital Markets Group

Genworth Financial Inc. (NYSE: GNW) has named Cheryl C. Whaley senior vice president in charge of the company's newly expanded capital markets and growth ventures unit, created as part of the company's recently announced organizational realignment.

"Leveraging the capital markets in the most effective manner is an important part of our strategy and our future, and Cheryl is uniquely qualified to lead this effort," said Michael D. Fraizer, chairman and chief executive. "Doing so helps us manage risk, optimize our use of capital and product profitability, and support new business models. Genworth has been a market leader in this area, as exemplified by our pioneering term and universal life reserve securitization transactions."

In her new role, Whaley will lead strategies which take advantage of capital markets access and structures across Genworth's business segments and oversee specialized teams with expertise in these areas.

Genworth recently announced a significant repositioning into three operating segments. An expanded Retirement and Protection segment will include retirement income, managed money, life insurance, long term care insurance, and institutional. A new International segment will include international mortgage insurance and payment protection insurance. U.S. Mortgage Insurance is the third operating segment.

"As part of our intensified focus on markets where we have scale and leadership, we must create capital markets solutions that leverage our strengths and enhance our profitability," Whaley said. "I am excited to be working with wonderful teams across our businesses to devise new and improved solutions that help our customers, distributors and investors."

Whaley had been head of Genworth's growth ventures team and a key catalyst in its efforts to build and strengthen competitive strategies.

Prior to joining Genworth, Whaley spent nine years at Genworth's pre-IPO insurance businesses and other GE Insurance entities. She held leadership roles at GE Financial Assurance, including president and CEO of GE Capital Life Assurance Company of New York and American Mayflower Life Insurance Company of New York and previously was the managing director, public finance, at Financial Guaranty Insurance Corporation.

Whaley also has held strategic planning and business development posts at CNBC, and earlier worked at CS First Boston, Northwest Airlines and Bain & Company. Whaley graduated from Wellesley College and holds an MBA from Harvard University.

About Genworth Financial

Genworth is a leading financial security company meeting the retirement, longevity and lifestyle protection, investment and mortgage insurance needs of more than 15 million customers, with a presence in more than 25 countries. For more information, visit http://www.genworth.com

GNW: Genworth Financial Announces Sale of Group Benefits Unit for $650 Million

Genworth Financial Inc. (NYSE: GNW) announced it has reached an agreement to sell its employee benefits group (EBG) life and health business, based in Windsor, CT, to Sun Life Financial Inc., for $650 million.

"This transaction is another key strategic move to better focus Genworth for the future, enabling us to align our core business platforms for growth, efficiency and improving returns," said Michael D. Fraizer, chairman and chief executive officer. He also reaffirmed the company's outlook for 2007 net operating earnings of $3.15 to $3.25 per diluted share, including the impact of this transaction.

"Over the past six years, we have built EBG into a business that today provides group life, disability, medical stop loss and dental insurance to approximately 32,000 organizations and serves 2.9 million plan participants," Fraizer said. "Our 650 EBG associates have done a great job building the operation and increasing its profitability. Based on our strategic assessment, however, we concluded it was better for this business to grow outside of Genworth and we are pleased to have such a top quality buyer that brings scale and a dedication to growth in this market."

The sale is expected to close during the second quarter of 2007, subject to regulatory approval. Genworth expects a modest gain on the sale upon closing. Proceeds from the transaction will be used to fund core growth and other capital priorities, potentially including acquisitions, share repurchase, or dividends. Genworth expects to recognize EBG as part of discontinued operations beginning with first quarter 2007 financial statements. In 2005, EBG reported $31 million in net income on revenues of $717 million, and has reported $24 million in net income on revenues of $554 million through the first nine months of 2006.