RICHMOND, Va., May 31 /PRNewswire-FirstCall/ -- Genworth Financial today
announced that its Australian mortgage insurance subsidiary has entered into
an agreement to acquire Vero Lenders Mortgage Insurance Limited (Vero LMI), in
Sydney, Australia, for approximately $165 million (USD) before a substantial
post-closing dividend pending regulatory approval.
Genworth Financial's Australian subsidiary will acquire a portfolio of
Vero LMI's insurance risks underwritten prior to Vero LMI entering into run-
off status in April 2003. Genworth Financial is in a strong position to
manage this run-off portfolio given its leading position in the mortgage
insurance market globally and in Australia.
"The acquisition of Vero LMI is a natural addition to our existing
portfolio in this region," said Brian Hurley, President of Genworth's
International Mortgage Insurance. "We have ongoing business relationships
with 11 of Vero's 12 former customers and a good knowledge of the market."
The proposed transaction has been approved by the Australian Prudential
Regulation Authority ('APRA') and remains subject to approval by the
Australian Competition & Consumer Commission ('ACCC'), as well as certain
other conditions. The transaction is expected to close in early July 2006.
Vero LMI is a subsidiary of Vero Insurance Limited, which in turn is
wholly owned by Promina Group Limited (Promina). Promina provides general
insurance and financial services in Australia and New Zealand.
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. For more information, visit
http://www.genworth.com.
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
regulatory factors.
SOURCE: Genworth Financial, Inc.
CONTACT:
Investors:
Alicia Charity, +1-804-662-2248,
Alicia.Charity@genworth.com, or
Media: Phil Moeller, +1-804-662-2534,
Philip.Moeller@genworth.com
both of Genworth Financial, Inc.
