Genworth Enters Into Exclusive Negotiations With AXA S.A. To Sell Lifestyle Protection Insurance Business

Genworth Enters Into Exclusive Negotiations With AXA S.A. To Sell Lifestyle Protection Insurance Business
22.07.2015 01:00 am

Genworth Enters Into Exclusive Negotiations With AXA S.A. To Sell Lifestyle Protection Insurance Business

M&A Deals

Genworth Financial, Inc. (NYSE: GNW) announces it has entered into exclusive negotiations with AXA S.A. after receiving an irrevocable offer to purchase its lifestyle protection insurance business. The company expects to accept the offer and execute an associated purchase agreement upon completion of the French works council1consultation process. The sale price is expected to be approximately $510 million2 and the company will record an after-tax loss of approximately $310 million2 in the second quarter of 2015 related to the expected sale and pension settlement costs. Net proceeds from the transaction, net of pension settlement costs and transaction related expenses, are estimated to be approximately $400 million2. Genworth plans to use these proceeds to advance compliance with the Private Mortgage Insurer Eligibility Requirements and to reduce debt levels. The sale is expected to close by the end of 2015 and is subject to other customary conditions, including requisite regulatory approvals.

"This transaction is another important step toward simplifying our business portfolio and increasing the financial flexibility and strength of Genworth," said Tom McInerney, President and CEO. "This sale also provides the opportunity for our employees in the business and the purchaser to have a strong business to grow going forward." 

Since October 2012, the company has identified its lifestyle protection insurance business as non-core and communicated its interest to sell it as economic and business conditions permitted.

Barclays and Sidley Austin LLP are advising Genworth on this transaction.

Related News

Cornerstone Completes Acquisition of FXPress Payment Services Following Consent of the FCA

Cornerstone Brands is pleased to announce the completion of its acquisition of FXPress Payment Services Ltd. (“FXPress”) following the consent... Read more »

Pure Storage to Acquire the Leading Kubernetes Data Services Platform Portworx

Pure Storage (NYSE: PSTG), the IT pioneer that delivers storage as-a-service in a multi-cloud world, today announced it has entered into a definitive agreement... Read more »

Ohpen acquires Europe’s #1 STP loan and mortgage software company Davinci

Ohpen, the first fintech platform to bring a bank to the cloud, today announces its acquisition of cross-border loan and mortgages Software as a Service (SaaS... Read more »

Cornerstone to Acquire FXPress Payment Services

Cornerstone Brands is pleased to announce that shareholders have approved the intended acquisition of FXPress Payments Services Ltd, a... Read more »

ConsenSys Acquires Quorum® Platform from J.P. Morgan

ConsenSys, an industry-leading blockchain software company, today announced the acquisition... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel