Genworth Financial Inc. will undertake a restructuring that in essence separates out its U.S. and European mortgage insurance operations from its life insurance operations. The move, the company said, will increase capital and reduce the risk-to-capital ratio by between 12 and 15 points.

Even so, the company plans include setting up a clean-sheet mortgage insurer to write new business in case Genworth Mortgage Insurance Co. can no longer do so because of elevated risk-to-capital ratios or the loss of regulatory waivers of going over the risk-to-capital ratio.

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