Nov. 13 (Bloomberg) -- Genworth Financial Inc., the insurer ousted from the government program that buys short-term debt from financial firms, surged 53 percent in New York trading after borrowing $930 million from its revolving credit lines.

The insurer advanced 53 cents to $1.53 at 4:00 p.m. in New York Stock Exchange trading. The money will be used to repay debt maturing in 2009, the Richmond, Virginia-based insurer said today in a statement. Genworth said it has no more long-term debt maturing until 2011.

``They've got some flexibility,'' said Julie Burke, an analyst at Fitch Ratings, in an interview before the announcement. Burke said she didn't think tapping the lines would be ``a negative.''

Genworth has lost more than 90 percent of its market value this year as declines in its investment portfolio and losses from insuring U.S. mortgages depleted capital. The company said Nov. 10 it was removed from the U.S. commercial paper program after its credit ratings were downgraded.

Tapping the funds from the $1.7 billion available under the credit lines is ``an important step to navigate today's difficult capital market conditions,'' Chief Executive Officer Michael Fraizer said in the statement.

The insurer has posted $2.8 billion in writedowns and unrealized losses tied to the slumping U.S. mortgage market, part of an industrywide total of more than $120 billion for North American carriers. The company suspended its dividend and announced plans to sell assets or raise capital and posted a third-quarter loss last week.

Genworth, which sells life insurance and retirement products as well as mortgage coverage, has recorded two straight net losses on defaults by U.S. homeowners. Life insurance stocks had their worst month in at least a decade in October as stock and bond investments held to back policies plummeted in value.

Genworth had its credit rating cut by Fitch on Oct. 21 to A- from A+.

To contact the reporter on this story: Andrew Frye in New York at afrye@bloomberg.net

Last Updated: November 13, 2008 16:13 EST