RICHMOND, Va., Dec. 2, 2015 /PRNewswire/ -- Genworth Financial, Inc. (NYSE: GNW) announced that it has closed the sale of its lifestyle protection insurance business to AXA. The adjusted sale price was approximately $490 million1 and net proceeds from the transaction, net of pension settlement costs, transaction related expenses and gains related to foreign exchange hedging are expected to be approximately $4151,2 million. A majority of the net proceeds are expected to be applied to the company's debt which becomes due in 2016. The company will reflect any revisions to the loss on sale in the fourth quarter of 2015, based on the finalization of its post-closing adjustments. The closing of this transaction is another important step toward simplifying the business portfolio and increasing the financial flexibility and strength of Genworth.
Barclays and Sidley Austin LLP advised Genworth on this transaction.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company committed to helping families become more financially secure, self-reliant and prepared for the future. Genworth has leadership positions in mortgage insurance and long term care insurance and product offerings in life insurance and fixed annuities that assist consumers in solving their home ownership, insurance and retirement needs. To help families start "the talk" about their futures and long term care planning, Genworth recently completed the first stage of its national #LetsTalk Tour to encourage conversations and information sharing. 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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Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements regarding the financial impact from the transaction to dispose of the Company's lifestyle protection insurance business and the planned use of transaction proceeds. 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 the items identified under "Part I—Item 1A—Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (SEC) on March 2, 2015 and as updated in Genworth's Form 10-Qs filed with the SEC on April 29, 2015, August 5, 2015 and October 30, 2015.
We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
1 Estimated sale price of €465 million and foreign exchange rate of 1.0589 (€ to US$) as of December 1, 2015 and is subject to change based upon final post-closing adjustments.
2 Net proceeds includes an estimated payment for pension liability, and uses an estimated balance sheet as of November 30, 2015, both of which remain subject to final post-closing adjustments.
SOURCE Genworth Financial, Inc.