Genworth Financial Inc. said Tuesday that Chairman and CEO Michael D. Fraizer has resigned, and the board has tapped Chief Financial Officer Martin P. Klein to fill as CEO while it searches for a successor.
Fraizer helped steer the insurer through its initial public offering by GE in 2004 and the recent financial and housing crisis. In a statement, he said this is “the right time for me to move on to other opportunities.”
The board named James S. Riepe, a company director since 2006, non-executive chairman. Klein, who has been chief financial officer for about a year, will remain on the job while he’s acting CEO.
In addition to the top management changes, Genworth reported that its profit and revenue declined in the first quarter.
The company said net income fell to $47 million, or 9 cents a share, for the three months ended March 31. That compares with $59 million, or 12 cents a share, in the same period last year.
The latest quarter included a loss of $41 million related to a transaction by its U.S. life insurance segment.
Operating income, which excludes investment gains and losses, slipped to $31 million, or 6 cents per share, from $75 million, or 15 cents per share, last year.
Revenue slipped to $2.43 billion from $2.57 billion a year earlier, reflecting lower premiums.
Results missed Street expectations. On average, analysts surveyed by FactSet forecast quarterly operating income of 13 cents per share and revenue of $2.6 billion.
Meanwhile, Genworth announced additional executive changes at its mortgage insurance business.
Kevin Schneider, president and CEO of the company’s U.S. mortgage insurance unit, has shifted over to Genworth’s global mortgage insurance division, where he’ll hold the same executive titles.
Rohit Gupta, who has been chief commercial officer of the U.S. mortgage insurance unit, will take Schneider’s former post.