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- August 31, 2012
Genworth Financial completes its strategic review
The management and board of directors of Henrico County-based Genworth Financial Inc. have completed a strategic review of its operations, but at press time the company had not disclosed if any of its businesses will be spun off or sold.
Virginia Business reported on possible changes at the Fortune 500 company in its August issue. According to analysts interviewed by Dow Jones Newswires, Genworth might consider selling: its majority stake in its Canadian mortgage insurance subsidiary, some or all of its Australian mortgage insurance unit, or its U.S. wealth management business.
Analysts told Dow Jones, however, that Genworth might not want to sell its U.S. mortgage insurance unit because of improving business conditions and tax benefits the company has accrued from previous losses.
In a conference call with investors on Aug. 1, acting CEO Martin P. Klein said that “to optimize our ability to execute and to avoid creating undue market expectations and distractions, we will not discuss specific transactions until the appropriate times.”
During the conference call, Klein added that options for spinning off or selling the U.S. mortgage insurance unit “may not be viable at this time due to potential capital required to execute the transaction.”
Second-quarter earnings released on July 31 were $76 million, or 16 cents per diluted share, compared with a loss of $136 million, or 28 cents per diluted share, during the same quarter last year.
Tuition increases average 4.1 percent
Gov. Bob McDonnell announced in August that the average tuition increase at state colleges and universities this year is 4.1 percent, down from 7.9 percent last year. Tuition at state schools had nearly doubled in the past 10 years.
“Too many Virginia students graduate from college with significant debt, making the high cost of a college education both a deterrent and an ongoing financial burden,” the governor said.
McDonnell said $230 million allocated by the General Assembly to higher education for the next two years helped keep tuition in check.
Virginia Business looked at the effects of rising student debt in the August issue.