Reinsurance News

Genworth sells shares in Australian mortgage business

2nd March 2021 - Author: Katie Baker

Genworth Financial’s wholly owned subsidiaries Genworth Financial International Holdings and Genworth Holdings have announced that they have sold approximately 214.3 million shares in Genworth Mortgage Insurance Australia, at A$2.28 per share.

genworth-logoThis represents Genworth’s entire ownership position in Genworth Australia. Settlement of the sale will occur early March.

Completion of this transaction will result in a payment of approximately USD$247 million, after which the net proceeds available to Genworth will be approximately USD$123 million.

As previously announced, Genworth will continue to prepare for a potential partial IPO of Genworth’s U.S. Mortgage Insurance business, subject to market conditions as well as the satisfaction of various conditions and approvals.

Tom McInerney, Genworth President and CEO commented: “We’re pleased to take this additional step in our revised strategic plan. This transaction will help enhance our holding company liquidity ahead of our near-term obligations, including our debt due in September 2021 and upcoming AXA liabilities due in 2022.”


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