Genworth Financial, Inc. (NYSE: GNW) and China Oceanwide Holdings Group Co., Ltd. (Oceanwide) today announced that Oceanwide has submitted supplemental materials to the New York State Department of Financial Services (NYDFS) and other U.S. insurance regulators to document the conditions that are expected to facilitate a reapproval by the NYDFS of the proposed acquisition of control by Oceanwide of Genworth’s New York-domiciled insurance company, Genworth Life Insurance Company of New York (GLICNY).
The filings reflect, among other items, Genworth’s agreement with the NYDFS to make the previously disclosed $100 million capital contribution to GLICNY at closing of the proposed acquisition through the issuance by GLICNY of a surplus note to a Genworth holding company. Genworth believes that the use of a surplus note to make the capital contribution to GLICNY at closing and the other conditions to facilitate the reapproval by the NYDFS of the proposed acquisition are acceptable to the NYDFS and other U.S. insurance regulators. The reapproval by the NYDFS remains subject to their review of the final submitted documentation. Fintech News
In addition, the parties are providing supplemental information to certain U.S. insurance regulators to reflect the passage of time since their prior approval of the Oceanwide transaction. These regulators will need to review the supplemental information to determine whether it has any impact on their existing approvals. If the parties are able to obtain the NYDFS reapproval and confirm the other U.S. regulatory approvals, Oceanwide will also need to receive clearance in China for the currency conversion and transfer of funds in order to complete the transaction.
Genworth and Oceanwide are targeting closing the transaction on or about March 31, 2020. However, both parties acknowledge that they may need to be flexible with the specific closing date given potential uncertainties or timing delays that may arise because of the impact of the coronavirus outbreak in the United States and China and the resulting remote work policies in effect.
