Genworth Financial Ends Merger Agreement with China-Based Company After Four Years of Delay | Economic news

History of Genworth Financial

1871: The Life Insurance Company of Virginia, known as Life of Virginia, was founded by two dozen investors in Petersburg and offered its first policies to local clients. The company then expanded and moved its headquarters to Richmond.

1927: The company has expanded its portfolio to include annuities.

1961: The company has added mortgage insurance to its insurance offerings.

1967: Richmond Corp. was established to serve as a holding company for Life of Virginia and Lawyers Title Insurance Corp.

1974: The company started offering long term care insurance policies.

1977: Richmond Corp. was sold to the Continental Group Inc. for $ 370 million to form the Richmond Co., later known as Continental Financial Services Co.

1984: Richmond-based Universal Leaf Tobacco Co. Inc. acquired Lawyers Title from Continental Financial Services for $ 115 million. Universal Corp. established Lawyers Title as an independent company in 1991.

1986: Combined Insurance, a Chicago-based holding company, bought Life of Virginia for $ 557 million and became AON Corp. the next year.

1996: GE Capital, the financial services unit of General Electric, has announced plans to buy out most of AON Corp.’s life insurance business, including Life of Virginia. Under GE Capital, Life of Virginia joined GE Financial Assurance Holdings Inc., before becoming GE Capital Assurance Co.

1997: GE Financial Assurance has moved its headquarters from Stamford, Connecticut to the Brookfield office complex in western Henrico County.

October 2003: Genworth Financial was created by the amalgamation of several GE Capital insurance companies.

May 2004: Genworth went public on the New York Stock Exchange in a $ 2.8 billion initial public offering at $ 19.50 per share. Michael D. Fraizer, former president, president and chief executive officer of GE Financial Assurance, becomes president, president and chief executive officer of Genworth.

2008: Genworth reports $ 572 million in losses for the year as collapsing real estate market forces it to make huge payments in its mortgage insurance business, while a decline in the stock market hurt its investments , lowering the company’s stock price. The company laid off around 1,000 employees.

May 2012: Michael D. Fraizer has resigned as president and chief executive officer of Genworth. James S. Riepe appointed non-executive chairman.

December 2012: Long-time insurance industry leader Thomas J. McInerney is appointed President and CEO of Genworth.

December 31, 2013: Genworth stock closed at $ 15.53 after doubling for the year, with the company’s U.S. mortgage insurance business posting its first annual profit since 2007.

2013-2014: As the mortgage insurance business stabilized, Genworth suffered losses in its long-term care insurance business. The company reported a loss of $ 1.2 billion for 2014 after setting aside hundreds of millions of dollars to cover long-term care insurance costs.

May 2014: Genworth raised $ 545 million by selling a stake in its Australian mortgage insurer.

March 2, 2015: Genworth reported a significant weakness in its accounting for long-term care coverage. The shares fell 5.4% to $ 7.33.

April 29, 2015: McInerney said he would be open to privatizing Genworth if a buyer was willing and able to accept the risks.

February 4, 2016: Genworth suspended sales of traditional life insurance and fixed annuity products after posting a loss in the fourth quarter.

October 2016: Genworth has agreed to be acquired by China Oceanwide Holdings Group Ltd., a Beijing-based private and family-owned international financial holding company, for $ 5.43 per share or $ 2.7 billion.

March 2017: Genworth shareholders voted in favor of China Oceanwide’s acquisition of the company.

2017-2020: Completion of the China Oceanwide deal has been repeatedly delayed as Genworth has sought approval from numerous state insurance regulators and federal regulators.

June 2018: The Committee on Foreign Investments in the United States, or CFIUS, has approved the proposed deal with China Oceanwide. The CFIUS is a joint committee of federal government agencies that reviews acquisitions of U.S. companies by foreign entities for national security reasons. As part of its efforts to gain approval, Genworth has agreed to use a US-based third-party service provider to manage and protect the data of its US policyholders.

August 2019: After being unable to secure approval from Canadian regulators for the China Oceanwide deal, Genworth agreed to sell its Canadian mortgage insurance business to Brookfield Business Partners LP, a Toronto-based investment firm.

December 12, 2020: Genworth said China’s economic management agency – the National Development and Reform Commission, or NDRC – had re-approved the deal. Genworth and China Oceanwide are extending the deal deadline for a 17th time until December 31 to give China Oceanwide more time to complete the financing.

January 4, 2021: Genworth said the merger has been on indefinite suspension, although the two companies have said they may still be in a position to strike a deal. Genworth said it was focused on pursuing a contingency plan that could include a partial initial public offering of shares for its mortgage insurance business in the United States.

April 6, 2021: Genworth said it exercised its right to terminate its merger agreement with China Oceanwide, allowing the company to continue with its revised strategic plan without restrictions and without uncertainty as to its final ownership.

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