Genworth Financial to Sell Part of Its Stake in Australia Segment

Genworth Financial Inc. said Monday that has agreed to sell a portion of its interest in Genworth Mortgage Insurance Australia Ltd., a year after the company sold a chunk of the business through an initial public offering.

The Richmond, Va., mortgage-insurance company said its wholly owned subsidiaries, Brookfield Life Assurance Co. and Genworth Financial International Holdings Inc., have agreed to sell 92.3 million shares at 3.08 Australian dollars (US$2.43) a share.

The transaction represents about 14.2% of Genworth Australia's share capital and is being conducted via a fully underwritten selldown to equity market investors. The sellers will retain an approximate 52% stake in Genworth Australia.

The sale "represents an important step toward the execution of our strategic initiative to increase the financial flexibility and strength of Genworth" and "advances Genworth's ability to support compliance...and reduce debt levels," Chief Executive Tom McInerney said.

Last May, Genworth sold about 30% of its Australian insurance business through an initial public offering. The IPO raised about $583 million.

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