On Tuesday, Genworth Financial Inc, a mortgage insurer, announced that it is contemplating several possibilities in regards to its U.S. mortgage-insurance operations. One of the possible options would be a spin off, which would drastically raise shares in regards to premarket activity. Other ideas involve asset transfers apart from the U.S., joint ventures to improve capital, and reinsurance transactions.

Genworth has almost $4 billion in cash/cash equivalents, spread throughout their operating companies, and also runs several credit facilities. They recently reduced their commercial paper borrowings to $79 million, but still oversee almost $800 million in cash/cash equivalents in the holding company. Lately, their stock has been floundering due to concerns about their mortgage affairs after the collapse of the American International Group Inc (AIG). AIG was only saved by the government having given them a two year, $85 billion loan, to help keep them afloat.

Over the past year, Genworth´s stock has ranged between $3.51 to $32.33. Shares of the company have boomed from $1.49 to $6.49 in premarket activity, a 30% increase. Michael D. Fraizer, Genworth´s chairman/chief executive, commented on the company´s current standing, saying that "We have demonstrated that, in the current stressed U.S. housing environment, our U.S. Mortgage Insurance business continues to operate from a more sound financial position and lower risk profile than any other U.S. mortgage insurer,...At the same time, progress in our international, wealth management, retirement, life and long-term care insurance businesses has been overshadowed by concerns about the future of U.S. mortgage insurance,".