RICHMOND, Va., Jan. 20 /PRNewswire-FirstCall/ -- Genworth Financial today
announced that it has entered into an agreement to acquire Continental Life
Insurance Company of Brentwood, TN, a provider of Medicare supplement
insurance for the past 22 years. Genworth will combine its existing Medicare
supplement business with Continental Life and the consolidated operations will
report to Genworth's long term care insurance business.
"The acquisition of Continental Life is a natural addition for Genworth
Financial, given our strategy of serving the fast-growing senior markets with
multiple products," said George Zippel, president and CEO of the company's
Protection Segment. "With its strong market position and extensive
distribution network, Continental Life enhances our presence in the Medicare
supplement insurance space, more than doubling our existing book of business,"
added Buck Stinson, president of Genworth's long term care insurance business.
"I see this as a win, win, win," says Randall Baskin, owner and CEO of
Continental Life. "The financial strength of Genworth allows us to grow, while
maintaining the great service and support our producers and policyholders have
come to expect."
Continental Life was founded in 1983, and has statutory assets of more
than $132 million (as of 06/2005) and 4,200 specialist agents nationwide.
Medicare supplement insurance is sold on an individual or group basis and
helps to fill the gaps in the coverage provided by the original Medicare
program. While Medicare supplement insurance does not duplicate the benefits
provided by Medicare, it does help to pay certain Medicare deductibles and co-
payments, and may cover some services and expenses not covered by Medicare.
Under terms of the agreement, Genworth will pay approximately $145 million
for Continental Life. The transaction is subject to regulatory approval and
is expected to close in the second quarter of 2006.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading insurance holding
company, serving the lifestyle protection, retirement income, investment and
mortgage insurance needs of more than 15 million customers, with operations in
24 countries, including the U.S., Canada, Australia, the U.K. and more than a
dozen other European countries. Within the senior market, Genworth is the
national leader in long term care and income annuities. For more information,
Caution Concerning Forward-Looking Statements
This release includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to our plans,
objectives, expectations and intentions and other statements contained in this
report that are not historical facts as well as statements identified by words
such as "expects," "anticipates," "intends," "plans," "believes," "seeks,"
"estimates," or words of similar meaning. These statements are based on our
current beliefs or expectations and are inherently subject to significant
uncertainties and changes in circumstances, many of which are beyond our
control. Actual results may differ materially from these expectations due to
changes in global political, economic, business, competitive, market and
SOURCE Genworth Financial, Inc.
CONTACT: Investors: Alicia Charity, +1-804-662-2248,
Alicia.Charity@genworth.com, or Media: Neal McGarity, +1-203-708-3460,
Neal.McGarity@genworth.com, both of Genworth Financial, Inc.