Now comes the news on Genworth, the new name and spin off of the old GE Capital life markets, that Moody's has down graded them to A1 claims paying ability from it's prior AA. Is this going to be the next candidate for a whisper campaign from factoring and crooked sales agents to get people out of their Genworth annuity contracts and buy new product or factor out of structures?
It's hard to say but I can tell my readers one thing, that for almost 6 weeks now Genworth has been one of the most searched items on our server and keywords, indicating to me that there have been concerns circulating for quite some time. What this tells me, and some quick research validates, is that there has been mounting concern about the company since it's spin off, despite the quality of the life markets it holds.
I'll get on this topic later this week, but as of right now I want to repeat to Genworth annuity holders in structured settlements, which comprise First Colony Life among other big names, that once again you shouldn't be stressed or panic about the credit rating issues of a corporate parent. As the AIG experience showed and as events unfolded, the state regulations protecting policyholders and insureds work and that even if the corporate parent is having issues, that there is no reason to fall prey to sleazy scare tactics designed to get you out of your annuity contract and into another vehicle. If you have a question about safety call your state insurance commissioner, discuss financial protection and insurance insolvency funds in your state and get informed before you make an expensive mistake.
The Legal Broadcast Network will have video commentary on the Genworth situation later this week.