Genworth subsidiary sells European mortgage insurance business
Genworth Financial Inc. announced Tuesday that its mortgage insurance subsidiary has agreed to sell its European business for $55 million.
Genworth Mortgage Insurance Corp. (GMICO) agreed to sell the business to AmTrust Financial Services Inc. Proceeds of the sale will provide additional capital credit to GMICO under the private mortgage insurer eligibility requirements.
Genworth expects to record an after-tax loss of $140 million related to the sale in the fourth quarter of 2015.
The transaction is expected to close in the first quarter of 2016 and is subject to customary conditions and regulatory approvals.
Lazard and Sidley Austin LLP advised Genworth on this transaction.