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July 24, 2019 at 06:36 PM
Genworth Financial Inc. is taking a public step toward selling its Canadian mortgage insurance business, and its mortgage insurance businesses elsewhere in the world.
The Richmond, Virginia-based company has announced an effort to change the terms governing $3.2 billion in notes.
The effort — a consent solicitation — would give Genworth official authorization, under the terms of notes’ “indentures,” to sell all or part of the company’s non-U.S. mortgage insurance businesses and assets, including the Genworth Canada business.
(Related: Genworth and China Oceanwide Push Deal Deadline Back)
Genworth has agreed to pay the note holders who give their consent $2.50 per $1,000 of note principal.
Consents are due at 5 p.m. Eastern Daylight Time Aug. 9.
The History
Genworth was a major player in the U.S. life, annuity and mortgage insurance markets, and it helped create the U.S. market for stand-alone long-term care insurance.
The company continues to sell new mortgage insurance in the United States, Canada and Australia.
The company has suspended sales of new life insurance and annuities. The company appears to be selling some new LTCI coverage, but it has stopped reporting on new LTCI sales.
China Oceanwide Holdings Group Co. Ltd., a Beijing-based real estate developer and financial services company, agreed in October 2016 to buy Genworth.
The companies have pushed the deal completion deadline back many times. The current deadline is Nov. 30. The companies say they have now received most of the regulatory approvals they need to complete the deal. They said when they announced the latest deadline extension that one obstacle has been Canadian regulators’ concerns about how the companies would protect Genworth customers’ personally identifiable information.
