As part of Genworth Financial Inc.'s (GNW; BBB/Negative/A-2) quarterly results, Genworth Australia has today reported significant reserve strengthening and a loss ratio of 154% for the first quarter of 2012, and confirmed the delay of the IPO planned for the first half of 2012. We are affirming our financial strength and issuer credit ratings on Genworth Australia at 'AA-'. The outlook is stable. The affirmation reflects our expectations that this reserve strengthening is an isolated event, and is not an indication of a structural deterioration in earnings, or threat to Genworth Australia's very strong capitalization. Standard&Poor's Ratings Services today affirmed its 'AA-' financial strength and issuer credit ratings on Genworth Financial Mortgage Insurance Pty Ltd. (Genworth Australia). The
