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February 07, 2018 at 05:17 AM
Genworth Financial Inc. says the Delaware Department of Insurance is one of the regulatory agencies slowing its efforts to sell itself to China Oceanwide Holdings Group Ltd.
Genworth needs a large amount of cash to handle debts maturing in May. Because regulators are taking so long to approve the China Oceanwide deal, and delaying Genworth’s access to the cash infusion the deal would provide, Genworth will have to try to get secured debt financing, the company says.
(Related: Genworth Talks About May 2018)
The Richmond, Virginia-based insurer talked about the status of the China Oceanwide deal today when it released its earnings for the fourth quarter of 2017.
Earnings
Genworth has been a major issuer of life insurance, annuities and mortgage insurance, and one of the major players in the long-term care insurance (LTCI) market.
The company as a whole is reporting $265 million in net income for the fourth quarter on $1.7 billion in revenue, compared with a net loss of $63 million on $2.2 billion in revenue for the fourth quarter of 2016.
Results for the fourth quarter include a $456 million gain related, partly, to the effects of the new Tax Cuts and Jobs Act.
The company’s operating results exclude the effects of the new tax law and other unusual gains and charges. The company reported a $290 million operating loss before income taxes for the latest quarter, compared with a $56 million operating loss for the year-earlier quarter.
The LTCI unit reported $17 million in operating profits for the quarter, up from a $1 million operating loss for the year-earlier quarter.
New individual LTCI sales held steady at $1 million.
New group LTCI sales increased to $4 million, from $1 million.
