RICHMOND, Va., Oct. 27, 2015 /PRNewswire/ -- Genworth Financial,
Inc. (NYSE: GNW) (the company or Genworth) announced today that
Genworth Mortgage Insurance Corporation (GMICO), a wholly-owned
indirect subsidiary of the company, has entered into an agreement
to sell its European mortgage insurance business to AmTrust
Financial Services, Inc. that is expected to result in net proceeds
of approximately $55 million.
These proceeds will provide additional capital credit to GMICO
under the private mortgage insurer eligibility requirements
(PMIERs). Prior to this transaction, GMICO did not receive capital
credit under PMIERs for its ownership of the European mortgage
insurance business.
The company expects to record a decrease in GMICO statutory
surplus of approximately $90 million
in the third quarter of 2015 related to the anticipated sale, with
a slight impact to its statutory risk-to-capital ratio of less than
one point. Additionally, the company expects to record an after-tax
GAAP loss of approximately $140
million related to the sale in the fourth quarter of 2015.
The transaction is expected to close in the first quarter of 2016
and is subject to customary conditions, including requisite
regulatory approvals. Genworth will provide further details
regarding the transaction on its earnings conference call for the
third quarter of 2015.
Lazard and Sidley Austin LLP advised Genworth on this
transaction.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500
insurance holding company committed to helping families become more
financially secure, self-reliant and prepared for the future.
Genworth has leadership positions in mortgage insurance and long
term care insurance and product offerings in life insurance and
fixed annuities that assist consumers in solving their home
ownership, insurance and retirement needs. To help families start
"the talk" about their futures and long term care planning,
Genworth recently completed the first stage of its national
#LetsTalk Tour to encourage conversations and information sharing.
Headquartered in Richmond,
Virginia, Genworth traces its roots back to 1871 and became
a public company in 2004. For more information, visit
genworth.com.
From time to time, Genworth releases important information via
postings on its corporate website. Accordingly, investors and other
interested parties are encouraged to enroll to receive automatic
email alerts and Really Simple Syndication (RSS) feeds regarding
new postings. Enrollment information is found under the "Investors"
section of genworth.com. From time to time, Genworth's
publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth
Mortgage Insurance Australia Limited, separately release financial
and other information about their operations. This information can
be found at http://genworth.ca and
http://www.genworth.com.au.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be identified by words such
as "expects," "intends," "anticipates," "plans," "believes,"
"seeks," "estimates," "will," or words of similar meaning and
include, but are not limited to, statements regarding the proposed
transaction to sell the European mortgage insurance business and
its anticipated financial impact. The proposed transaction remains
subject to certain closing conditions, including regulatory
approvals, and the company cannot predict with certainty whether or
when this transaction will close or what the actual financial
impact will be. Forward-looking statements are based on
management's current expectations and assumptions, which are
subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Actual outcomes and
results may differ materially due to global political, economic,
business, competitive, market, regulatory and other factors and
risks, including the items identified under "Part I—Item 1A—Risk
Factors" of our Annual Report on Form 10-K for the year ended
December 31, 2014, filed with the Securities and Exchange
Commission (SEC) on March 2, 2015 and
as updated in Genworth's quarterly reports on Form 10-Q filed with
the SEC on April 29, 2015 and
August 5, 2015.
We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
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SOURCE Genworth Financial, Inc.