Pre-nationalisation Genworth runs down more capital

Friday 3 November 2017

I always enjoy looking through GMA accounts when they arrive:

Business model? Very amusing. What we have here is $271bn of insurance secured against $2.1bn of capital for a leverage ration of a cool 128x.

This is a pre-nationalisation quango masquerading as a business.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.