NU Online News Service, Jan. 20, 2004, 6:09 p.m. EST – Underwriters have filed a thick registration statement for the insurance operations of General Electric Company with the U.S. Securities and Exchange Commission.[@@]
General Electric, a Fairfield, Conn., conglomerate, hopes to spin the operations off as a separate, publicly traded company, Genworth Financial Inc., through an initial public offering.
If the IPO is successful, Genworth will have 5,640 employees, $28.6 billion in assets, headquarters in Richmond, Va., and offices in 19 countries outside the United States. It will sell mortgage insurance and investment products as well as individual life insurance, long term care insurance, retirement savings products, and group life and health products.
Genworth will be trying to profit from the effects of the aging of the population in developed countries and growth of home ownership in the United States, Asia and Europe, according to the registration statement.
Most of the operations that GE plans to put in Genworth are now part of General Electric’s GE Financial Assurance Holdings Inc. unit.
If Genworth were a stand-alone company, it would have reported $1.2 billion in net income for 2002 on $11.2 billion in revenue, compared with $1.4 billion in net income on $11.1 billion in revenue for 2001, according to the registration statement.
For the first 9 months of 2003, the company’s protection segment generated $392 million in net income on $4.6 billion in revenue, compared with $393 million in net income on $4.2 billion in revenue for the first 9 months of 2002.
The company as a whole is reporting $749 million in net income for the first 9 months of 2003 on $8.6 billion in revenue, compared with $982 million in net income on $8.2 billion in revenue.
New life sales fell to $133 million during the first 9 months of 2003, from $144 million, and new LTC insurance sales fell to $186 million, from $196 million. Life revenue held steady at $1.1 billion, but LTC revenue increased to $1.8 billion, from $1.5 billion.
The registration statement is available on the Web site of the U.S. Securities and Exchange Commission, at http://www.sec.gov/Archives/edgar/data/1276520/000104746904001169/a2126637zs-1.htm