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

Venafi to Acquire Jetstack to Accelerate and Secure Digital Transformation

Venafi®, the inventor and leading provider of machine identity... Read more »

IHS Markit Acquires Catena Technologies

 IHS Markit (NYSE: INFO), a world leader in critical information, analytics and solutions, today announced the acquisition of Catena Technologies (Catena), a global regulatory... Read more »

Santander strengthens its international trade operations for SMEs with the completion of the investment in Ebury

Banco Santander announced today the completion of its purchase of a c.50.1% stake in Ebury, one of the best international payment, FX and international cash management... Read more »

Tenth Revolution Group Acquires Top AWS Solutions Provider, Rebura

Tenth Revolution Group, a global leader in cloud talent solutions, today announced the acquisition of Rebura, one of the UK’s fastest-growing Amazon Web Services (AWS)... Read more »

Auriga acquires the award-winning ATM cybersecurity solution Lookwise Device Manager from leading managed security services provider S21sec

Auriga, a leading supplier of technological solutions for the omnichannel banking and payments industries, announces the acquisition of Lookwise Device Manager (LDM), a modular... Read more »

TietoEVRY integration progressing as planned – employee consultations initiated to drive merger-related efficiencies

TietoEVRY is taking the next step in the integration to ensure its position as the leading digital services and software company in the Nordics. A unified organization... 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