The New York State Department of Financial Services today cleared one of the major obstacles to China Oceanwide Holdings Group Co. Ltd. acquiring Genworth Financial Inc.
The department has reapproved the Beijing-based real estate and financial services company’s efforts to acquire control over a Genworth subsidiary that’s legally based in New York, Genworth Life Insurance Company of New York.
China Oceanwide has been trying to acquire Genworth since October 2016.
The original New York state deal approval expired in March 2019.
Genworth has promised New York regulators that it will contribute $100 million to the New York subsidiary when the China Oceanwide-Genworth deal closes, Genworth and China Oceanwide said in the announcement of the New York state deal reapproval.
Genworth has noted in the past that it would then have to get approval for the New York capital contribution from insurance regulators in other U.S. states.
Genworth and China Oceanwide have told the other state insurance regulators about the terms of the agreement with New York state and “believe that these terms are acceptable to them as well,” the companies said.
The companies are still answering some questions from the other regulators.
Once those items are resolved, China Oceanwide can ask its own regulators in China for permission to convert currency and transfer funds to pay for the deal, the companies said.
Genworth is a Richmond, Virginia-based company that’s decended from GE Capital’s insurance business. It has large mortgage insurance operations in the United States and Australia. It was a leader in the stand-alone long-term care insurance market and still has large blocks of life and annuity business on its books.
— Read New Coronavirus Hangs Over China Oceanwide Affiliate’s Board Meeting, on ThinkAdvisor.