Genworth to Sell European Mortgage-Insurance Business
October 27 2015 - 8:50AM
Dow Jones News
Genworth Financial Inc. agreed to sell its European
mortgage-insurance business to AmTrust Financial Services Inc. for
about $60 million in cash.
Based in the U.K., the mortgage-insurance business offers
products in the U.K., Finland, Italy and Germany. As of June 30,
the tangible book value of the operations were about $155
million.
Genworth said earlier this year that it planned to sell some
operations as part of a move to comply with tighter federal
requirements for mortgage insurers that want to do business with
Fannie Mae and Freddie Mac. Genworth officials estimated they
needed an additional $500 million to $700 million to met the
Private Mortgage Insurer Eligibility Requirements by Dec. 31.
The Richmond, Va., insurer said Tuesday's sale will provide it
with additional capital credit toward the requirements. It expects
to record an a loss of about $140 million related to the sale in
the fourth quarter, and the deal is expected to close in the first
quarter.
As for Amtrust, the company said the deal comes as the market
conditions for mortgage insurance in Europe are improving.
Write to Lauren Pollock at lauren.pollock@wsj.com
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(END) Dow Jones Newswires
October 27, 2015 08:35 ET (12:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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