What You Need to Know Before Buying
Company Background and Reliability
- Founded: 1871 (as Life Insurance Company of Virginia)
- Years in Business: 154 years (as of 2026)
- Headquarters: Richmond, Virginia
- Company Overview: Genworth Life and Annuity Insurance Company is a subsidiary of Genworth Financial. Although Genworth halted new annuity and life insurance sales starting in 2016, its legacy contracts remain in force and serviced.
- Why It Matters: Genworth no longer issues new annuities, focusing instead on managing existing policies and annuity contracts. If you currently hold one of these, understanding its structure and guarantees is critical.
Financial Strength and Ratings (2026)
- A.M. Best: C++
- S&P: Not Rated
- Moody’s: B3
- Fitch: Not Rated
- Comdex Score: 32
- Why It Matters: Genworth’s C++ rating reflects weak financial strength and below-average claims-paying ability. Since the company no longer issues new annuities and only manages closed blocks of business, policyholders should carefully evaluate whether keeping their contract is worth the risk. In many cases, exploring a 1035 exchange into a higher-rated insurer may provide stronger guarantees and long-term security.
Fixed Annuity Interest Rates
Genworth no longer issues new fixed annuities, but many policyholders still hold older contracts. If you own one, it’s important to compare the credited interest rates on your annuity with the current fixed annuity rates offered by A and A+ rated insurers today. Today’s market may provide significantly higher guaranteed growth opportunities than what your legacy Genworth annuity earns. By understanding how your contract compares, you can decide whether keeping it or exchanging it for a new annuity better supports your retirement goals.
Fixed Income Payout Rates
Although Genworth no longer sells income annuities, existing contracts may have built-in payout options. If you’re approaching retirement, compare the income guarantees in your Genworth annuity with the payout rates available today from stronger insurers. Current income annuities and FIAs with guaranteed lifetime withdrawal benefits often provide higher monthly income backed by stronger-rated carriers. This comparison helps determine whether activating your Genworth income option or moving funds to a new contract gives you the most secure and competitive retirement paycheck.
How to Compare Genworth with Other Companies
- Specialized Strength: Experienced in managing legacy annuity blocks and servicing existing policies.
- Financial Stability: Rated C++, reflecting poor financial strength.
- Product Range: No new products; only administration of legacy contracts remains.
- Independent Benchmarking: If holding a Genworth annuity, comparing your contract’s strength and guarantees with those offered by A+ or AA-rated carriers is especially wise.
Why Use an Independent Annuity Broker
- Brokers can help evaluate whether your Genworth contract should be retained or exchanged via 1035 exchange into a stronger carrier.
- They can compare administrative fees, guarantees, and liquidity features across active annuity providers.
- Using a broker costs you nothing, as commissions are paid by insurers.
Application Process (Step-by-Step)
- Review Existing Contract: Understand the terms, surrender charges, and guarantees currently in place.
- Consider Alternatives: Ask your advisor or broker about annuities currently available from A-rated or higher insurers.
- Evaluate Exchange Benefits: Compare gains, costs, safety, and flexibility of staying vs. 1035 exchange.
- Decision Path: Either hold your Genworth contract under current terms, or transfer to a new annuity with stronger backing and better features.
Other Insurance to Consider
- Life Insurance: Protects loved ones and can restore lost funds if you annuitize.
- Long-Term Care Insurance: Covers nursing home or in-home care costs.
- Disability Insurance: Secures income for working individuals before retirement.
Final Advice
Genworth Life and Annuity no longer issues annuities but continues servicing legacy contracts with a B- rating. While that may be acceptable for some, it’s prudent to consider whether transferring into a modern product from an A-rated or stronger insurer would yield better long-term security or flexibility.
Why Choose The Annuity Expert
- Our service is free of charge, with no obligation.
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- Advisors guide you through every step for a stress-free experience.
Contact The Annuity Expert today for free quotes. We’ll help you find the highest fixed annuity interest rates to grow your savings or the strongest guaranteed income payouts for retirement.
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