MET MetLife Inc

Genworth Financial Trust Company, a subsidiary of Genworth Financial, Inc. (GNW) launched its Cash Advantage service to provide custody services for the clients of independent financial advisors.

The new service, Cash Advantage – Checking, will help clients to link an investment account to a checking account offered through The Bancorp Bank, wholly owned subsidiary of The Bancorp, Inc. (TBBK).

The Cash Advantage – Checking Account includes overdraft protection through a linked GFTC custodial account, an option to make automatic monthly transfers, online account access, free checks and debit card.

It also includes an interest-bearing cash management solution with all the features of a checking account to meet everyday banking needs while keeping assets working toward long-term investment goals.

We believe introducing new services will help Genworth to continue to record higher revenues going forward. In 2010, Genworth posted a 11% year over year growth in revenue grossing $10.09 billion.

However, we expect the elevated unemployment rate to continue pressuring the mortgage insurance business. Though the business is showing signs of improvement, the line is still experiencing losses. Additionally, the improvements in its other business lines are expected to be slow given the economy’s sluggish recovery.

The Zacks Consensus Estimate for first-quarter 2011 is 22 cents per share. For fiscal years 2011 and 2012, the Zacks Consensus Estimates are a respective $1.09 per share and $1.70 per share.

We maintain our Underperform recommendation on Genworth. The quantitative Zacks #4 Rank (short-term Sell rating) for the company indicates downward pressure on the shares over the near term.

Based in Richmond, Virginia, Genworth Financial offers a variety of products to customers in areas such as life insurance and lifestyle protection, long-term care insurance, annuities, asset management and mortgage insurance through financial intermediaries, advisors, independent distributors and sales specialists. It competes with MetLife Inc. (MET) and Prudential Financial, Inc. (PRU).

 
GENWORTH FINL (GNW): Free Stock Analysis Report
 
METLIFE INC (MET): Free Stock Analysis Report
 
PRUDENTIAL FINL (PRU): Free Stock Analysis Report
 
BANCORP BNK/THE (TBBK): Free Stock Analysis Report
 
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