Genworth Financial Inc. says it’s actively trying to sell its Genworth MI Canada mortgage insurance unit, and that it intends to complete efforts to be acquired by China Oceanwide Holdings Group Co. Ltd. by Nov. 30.
Genworth and Oceanwide remain committed to the merger agreement and continue to work towards closing as soon as possible,” Genworth said, in comments made in connection with the release of second-quarter earnings.
Tom McInerney, Genworth’s president, said in a statement that Genworth hopes selling the Canadian unit will eliminate the need to get approval for the China Oceanwide deal from Canadian financial services regulators. Canadian regulators have had concerns about the protection of Genworth customers’ personal information.
“We remain fully committed to the transaction with Oceanwide and continue to believe that it represents the greatest and most certain value for all Genworth stakeholders,” McInerney said in a statement. “We appreciate Oceanwide’s committed partnership and patience throughout this process and look forward to working towards the successful completion of our transaction.” ”
Lu Zhiqiang, China Oceanwide’s chairman, said in a statement of his own that his company remains committed to the transaction at the original deal purchase price.
Genworth is descended partly from General Electric Co.’s financial services operations.
It helped develop the U.S. long-term care insurance market, and it was a big player in the U.S. life and annuity markets. It continues to write mortgage insurance in the United States, Canada and Australia.
China Oceanwide, a Beijing-based real estate developer and financial services company, agreed to acquire Genworth in October 2016. The companies have repeatedly postponed the acquisition consummation deadline.
Genworth is reporting $168 million in net income for the second quarter on $2.2 billion in revenue, compared with $190 million in net income on $2.2 billion in revenue for the second quarter of 2018.
The company’s long-term care insurance unit is reporting $37 million in adjusted operating income on $1.1 billion in revenue, up from $22 million in adjusted operating income on $1 billion in revenue for the year-earlier quarter.
A packet of documents related to Genworth’s earnings is available here.
— Read Genworth Filings Could Ease Sale of Genworth Canada, on ThinkAdvisor.