Genworth Financial (NYSE: GNW) reported Q2 EPS of $0.24, $0.02 worse than the analyst estimate of $0.26. Revenue for the quarter came in at $2.16 billion versus the consensus estimate of $2.39 billion.

Strategic UpdateIn May 2015, the company sold 92.3 million shares, or approximately 14 percent, in Genworth Mortgage Insurance Australia Limited. On July 22, 2015, the company announced it had entered into exclusive negotiations with AXA S.A. after receiving an irrevocable offer to purchase its lifestyle protection insurance business, which has been previously identified as non-core. These transactions increase the financial flexibility and strength of the company as it advances the ability to support compliance with the private mortgage insurer eligibility requirements (PMIERs) and reduce debt levels.

As of June 30, 2015, the company believes its U.S. mortgage insurance business would be compliant with the PMIERs capital requirements when including a series of transactions that have been executed to generate approximately $500 million of additional PMIERs capital credit and the completion of a planned internal restructuring. The transactions include:

• Execution of two excess of loss reinsurance transactions with a panel of reinsurers, both effective as of July 1, 2015, that are expected to provide approximately $300 million of PMIERs capital credit as of December 31, 2015. One of the transactions has been approved by the government-sponsored enterprises (GSEs) while the second is pending final approval from the GSEs.
• An intercompany sale of the U.S. mortgage insurance business' ownership interest in affiliated preferred securities in exchange for approximately $200 million of cash from Genworth Holdings, Inc. (proceeds used were primarily from the Australia mortgage insurance sell down) that resulted in a corresponding increase in available assets under PMIERs. The transaction did not affect statutory risk-to-capital ratios in the quarter, and the cash from Genworth Holdings, Inc. was transferred in July 2015.

The company will look to execute future capital transactions over the remainder of the year that provide a prudent level of financial flexibility in excess of the PMIERs capital requirements, including additional reinsurance transactions and contributions of holding company cash.

In connection with the company's plan to target cash savings in excess of $100 million pre-tax by the end of 2016, actions were taken in the first half of 2015 to reduce headcount and program spend that are expected to reduce cash expenses by approximately $30 million pre-tax in 2015 and $40 to $50 million pre-tax in 2016.

For earnings history and earnings-related data on Genworth Financial (GNW) click here.