Ah yes, ye auld peak of cycle moment, from the AFR:
Genworth Mortgage Insurance Australia faces investor and analyst backlash on Monday after the lenders mortgage insurance giant revealed late on Friday that its chief executive, Ellie Comerford, was leaving the company.
Genworth, which has a market valuation of $1.6 billion, announced Ms Comerford was retiring from the insurer and will remain in an advisory role until May 31 to “assist with transitional matters”.
Ross Curran, an insurance analyst at Commonwealth Bank of Australia, said Ms Comerford’s resignation would likely come as a surprise at a time when the share price has been trading close to record lows.
Smart gal:
According its March accounts Genworth carries $316 billion dollars in insurance in force yet it only carries $2.738 in regulatory capital, disgorging a shocking leverage ratio of 115.4x. Even allowing for some re-insurance that’s worrying to say the least.
If there is one Australian stock with a ripping prospect of going to zero it is GMA. Indeed, it is the MB contention that GMA is Australia’s AIG, the insurance patsy holding the toxic asset bag. Genworth began life as a government operation and, like AIG, that’s where it may well end.
