Genworth Financial Inc said it would separate its mortgage insurance business into a new company, as the company looks to insulate itself from its troubled mortgage insurance unit, sending its shares up 4 percent before the bell.Mortgage insurers have been struggling to recoup their losses after the housing bubble burst and foreclosures soared, leaving them with large claims on unpaid home loans.Genworth on Wednesday said the restructuring will help protect the company from insolvency events related to its U.S. mortgage insurance subsidiaries and will not lead to a default under the indenture governing Genworth's senior notes.Bond rating firm Moody's in September said it would likely downgrade Genworth unless the company could insulate itself from continuing losses from its mortgage insurance unit.
Genworth Financial, Inc. (Genworth) is a financial security company. Shares of GNW remained unchanged at $8.13. In the past year, the shares have traded as low as $4.06 and as high as $9.68. On average, 10162500 shares of GNW exchange hands on a given day and today's volume is recorded at 107381.
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