Genworth Financial, Inc. provides insurance and homeownership solutions in the United States and internationally. It operates through five segments: U.S. Mortgage Insurance, Canada Mortgage Insurance, Australia Mortgage Insurance, U.S. Life Insurance, and Runoff. The U.S. Mortgage Insurance segment offers mortgage insurance products primarily insure prime-based and individually underwritten residential mortgage loans. The Canada Mortgage Insurance segment provides flow mortgage insurance; and bulk mortgage insurance products and services that aid in the sale of mortgages to the capital markets, as well as helps lenders manage capital and risk in Canada. The Australia Mortgage Insurance segment offers flow mortgage insurance, as well as bulk mortgage insurance that aids in the sale of mortgages to the capital markets in Australia. The U.S. Life Insurance segment offers long-term care insurance products, as well as service traditional life insurance and fixed annuity products in the United States. The Runoff segment covers non-strategic products, which primarily include variable annuity, variable life insurance, institutional, corporate-owned life insurance, and accident and health insurance products. This segment's institutional products include funding agreements, funding agreements backing notes, and guaranteed investment contracts. It distributes its products and services primarily through appointed independent producers and employer groups. Genworth Financial, Inc. was founded in 2003 and is headquartered in Richmond, Virginia.
Business Analysis of Genworth Financial
The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Genworth Financial compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Genworth Financial to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Genworth Financial with an interactive chart.
- Revenue Growth: Genworth Financial reported a revenue growth of -2.1% year-on-year during 2016. Life Insurance Industry grew at -1.7% in the same period
- COGS share of Revenues: As a percentage of revenue, Genworth Financial spent 71.0% of its total revenues on COGS. Life Insurance industry average (COGS share of revenue) in the same period was 71.2%
- R&D share of Revenues: Genworth Financial R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Genworth Financial spent 15.2% of its total revenues on Sales, Marketing, and General Administration (SG&A). Life Insurance industry average SG&A spending in the same period was 10.6%
- Inventory share of Revenues: Genworth Financial Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: Genworth Financial Accounts Payable share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Receivable share of Revenues: As a percentage of revenue, Genworth Financial invested 212.2% of its total revenues on Accounts Receivable (A/R). Life Insurance industry average Accounts Receivable investment in the same period was 38.1%
- PP&E share of Revenues: Genworth Financial PP&E share of Revenues details are not available because either company does not share the data or we do not have it
- Intangibles share of Revenues: As a percentage of revenue, Genworth Financial invested 4.2% of its total revenues on Intangibles. Life Insurance industry average Intangibles investment in the same period was 7.6%
- Net Margins: Genworth Financial Net Margins in the year 2016 were -3.3%. Life Insurance industry average Net Margins in the same period were 4.3%
Sector and Industry Association of Genworth Financial
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Genworth Financial is associated with Financials Sector Group, Insurance Sector, and Life Insurance Industry.
Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:
- Life Insurance industry includes companies engaged principally in life insurance.
- Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
- Surety & Title Insurance industry includes companies providing title & surety insurance.
- Insurance Brokerage industry includes insurance brokers and agencies.
- Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.
Industry Ranking of Genworth Financial
With $8.4 billion revenues, Genworth Financial ranked number 6 of all the companies in the US Life Insurance industry. There were a total of 14 public companies in the US Life Insurance industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Life Insurance industry by revenues during 2016 were:
- MetLife ($63.5 billion)
- Prudential Financial ($58.8 billion)
- Lincoln National ($13.3 billion)
- Reinsurance Group Of America ($11.5 billion)
- Voya Financial ($10.8 billion)
- Genworth Financial ($8.4 billion)
- Torchmark ($3.9 billion)
- American National Insurance ($3.2 billion)
- American Equity Investment Life ($2.2 billion)
- Primerica ($1.5 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of Genworth Financialand its peers on select key performance indicators by clicking the reports provided below