Genworth Financial Postpones Planned IPO of Enact
Genworth Financial (NYSE: GNW) announced the postponement of the initial public offering (IPO) for its subsidiary, Enact Holdings, due to recent volatility in the mortgage insurance sector. The decision was made by Genworth's Board of Directors, who believe current market conditions do not reflect Enact's true value. Genworth maintains a robust liquidity position with approximately $757 million in cash and liquid assets as of March 31, 2021. The company remains optimistic about the long-term outlook for the mortgage insurance sector and will continue to assess market conditions.
- Genworth has $757 million in cash and liquid assets as of March 31, 2021, ensuring liquidity independent of the IPO.
- The Board maintains a positive long-term outlook for the mortgage insurance sector, citing strong housing trends.
- The IPO postponement reflects significant trading volatility in the mortgage insurance sector, indicating potential market instability.
- Current market pricing does not accurately reflect Enact's value, which could affect investor confidence.
RICHMOND, Va., May 13, 2021 /PRNewswire/ -- Genworth Financial, Inc. (NYSE: GNW) (Genworth) today announced that it has postponed the previously announced initial public offering (IPO) of its subsidiary, Enact Holdings, Inc. (Enact).
"In light of the recent significant trading volatility in the mortgage insurance (MI) sector, Genworth's Board of Directors determined that current market pricing for the planned offering does not accurately reflect Enact's value. Therefore, we have decided to postpone the IPO and will continue to evaluate our options as market conditions develop," said Tom McInerney, Genworth President and CEO. "Our primary objective has been and will continue to be protecting the value of Enact. We maintain our positive long-term outlook for the MI sector, given strong trends in the U.S. housing market and expected tailwinds as the economy recovers from COVID-19."
Genworth's liquidity position to meet its near-term obligations is not dependent on the IPO, with the holding company having approximately
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About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
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This communication contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning & include, but are not limited to, statements regarding the outlook for future business and financial performance of Genworth Financial, Inc. (Genworth) and its consolidated subsidiaries. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks, including those discussed at the end of this presentation, as well as in the risk factor section of Genworth's Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission (SEC) on February 26, 2021, Genworth undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
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SOURCE Genworth Financial, Inc.
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