RICHMOND, Va., Sept. 21, 2021 /PRNewswire/ -- Genworth
Financial, Inc. (NYSE: GNW) (Genworth) today announced that it has
successfully retired in full the outstanding balance on its
Promissory Note with AXA, S.A. (AXA) of approximately $296 million. Following the full repayment of the
Promissory Note, AXA has released its 19.9% security interest in
the outstanding common stock of Enact Holdings, Inc.
Genworth's settlement agreement with AXA is related to losses
incurred from mis-selling complaints for Payment Protection
Insurance written by a business that Genworth sold to AXA in 2015.
As part of the agreement, Genworth will also pay a portion of all
future mis-selling losses incurred by AXA, to be invoiced quarterly
by AXA. As of June 30, Genworth's
estimated portion of those remaining potential future mis-selling
losses was approximately $52 million.
Genworth will update the estimated portion of remaining mis-selling
losses with its upcoming results for the quarter ended September 30, 2021.
"We are very pleased to be able to retire the balance of our
Promissory Note to AXA, more than a year ahead of our originally
scheduled maturity date," said Tom
McInerney, Genworth President and CEO. "We are executing
against our plan to improve Genworth's financial position and as a
result, Genworth is now well-positioned to meet its ongoing
financial obligations and chart a path to growth. Further debt
reduction remains a top priority moving forward as we seek to
maximize shareholder value."
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.
Cautionary Note Regarding Forward-Looking
Statements
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. Examples of
forward-looking statements include statements the company makes
relating to the repayment of the promissory note with AXA, S.A. and
future reductions of debt. 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.