Genworth Financial has filed a preliminary prospectus with Canadian securities administrators for an initial public offering (IPO) of minority stake in Genworth’s Canadian mortgage insurance operations. The offering is likely to complete in the third quarter of 2009, subject to customary regulatory reviews and market conditions.
Earlier, the company announced plans to sell up to 49% stake in the Canadian mortgage insurance business and is likely to hold the majority position for the foreseeable future.
Michael Fraizer, Chairman and CEO of Genworth, said: “We believe this IPO, when completed, reinforce our already sound financial foundation, provides us with additional financial flexibility and enables Genworth to continue to benefit from the earnings associated with our majority ownership position in the Canadian mortgage insurance business.”
Genworth Financial is a financial security company operating through three segments, retirement and protection, US mortgage insurance, and international.