Genworth Drops Variable Annuities

In the third quarter of 2010, Genworth reported $151 million in total variable annuity sales, down from $217 million in the third quarter of 2009. The company's total retirement income fee-based earnings fell to $10 million, from $11 million.

Genworth expects to record a pre-tax charge of about $12 million in the first quarter in connection with the changes. Some of the money will be spent on severance and outplacement support for employees affected by the realignment.

"With this decision, we have taken an additional step in advancing our specialist strategy to concentrate on the markets, customers and products where we have distinct leadership positions and strengths," Genworth Chairman Michael Fraizer says. "Looking ahead, Genworth continues to help people meet their financial security needs by focusing on key protection, wealth accumulation and mortgage insurance offerings across its businesses."

Genworth has about $100 billion in assets and employs around 6,000 people in more than 25 countries.