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Genworth Announces Cost Cutting

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A large financial services company says it will be reducing some expenses and investing some of the savings in its operations.

Genworth Financial Inc., Richmond, Va., says it hopes to eliminate about $220 million costs over the next 2 years thanks to “recently completed legal entity mergers and the combination of multiple functional teams.”

But Genworth is aiming for a 20% expansion in the number of U.S.-based wholesalers and sales support staff serving its retirement, life insurance and long term care insurance lines in order to maximize distribution capabilities. The company also is increasing investments overseas, the company says.

Genworth notes that it will be taking a $15 million charge to reflect the cost of the realignment, and it will be treating its group life and health business as part of discontinued operations.

Genworth has agreed to sell the group life and health business to another company.

Genworth also notes that its U.S. mortgage insurance business is now separate from its other operations.