The Treasury Department has ruled that Genworth Financial Inc. is not eligible to participate in the Capital Purchase Program, the company says.
But Genworth, Richmond, Va., says that, despite its low stock price, it continues to have more than enough capital to support its life insurance subsidiaries.
“We remain comfortable with our target of a consolidated life insurance company risk-based capital ratio of 350% or above for year-end 2009,” Genworth Chief Executive Michael Fraizer says in a statement.
“We ended 2008 with about $2 billion of capital across Genworth in excess of levels required for targeted ratings or regulatory requirements,” Fraizer says.
Genworth is evaluating “additional strategic opportunities,” including “selected asset sales” and “other governmental programs that could provide additional financial flexibility,” Fraizer says.
“We will pursue these where we believe it makes sense,” Fraizer says.
The CPP is one part of the federal Troubled Asset Relief Program.
The federal government also has established a Legacy Securities Program and a Legacy Loans Program.