Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Genworth Financial Inc. (GNW - Analyst Report) has entered into an agreement to sell its Wealth Management Business to the joint venture company, Aquiline Capital Partners and Genstar Capital for approximately $412.5 million. The Wealth Management Business of Genworth consists of Genworth Financial Wealth Management and Altegris companies. Altegris is an alternative solutions provider.

Subject to regulatory approvals and other closing conditions, the deal is expected to culminate in the second half of 2013. Genworth expects to incur a loss of $40 million from the divestiture with $35 million incurring in the first quarter of 2013 and the remaining upon closing of the deal. The company will use the proceeds from the transaction and net of transaction related expenses to repay the debt scheduled to mature in 2014.

The company has been working toward its goal to strengthen its business through increased financial flexibility and generating capital by divesting its non-core businesses. Through the sale of its Wealth Management Business, Genworth is trying to move towards achieving this goal. Sustained lower margins in the Wealth Management segment over the past few years also led Genworth to hive this business.

Genworth had earlier sought to fortify its core asset management business within the Wealth Management segment.  Towards this end, in Apr 2012, the company divested Genworth Financial Investment Services ("GFIS"), its tax and accounting financial advisor unit. The divestiture was made to Cetera Financial Group for an undisclosed amount.

Among other insurers engaging in divesting activities, The Hartford Financial Services Group Inc. (HIG - Analyst Report) closed three previously announced divestitures in Jan 2013. The company has completed the sale of its Retirement Plans business to Massachusetts Mutual Life Insurance Company, Individual Life Insurance business to Prudential Financial Inc. (PRU - Analyst Report) and Individual Annuity new business facilities to Forethought Financial Group Inc. The deal is expected to enhance the financial flexibility of the company.

Genworth currently carries a Zacks Rank #3 (Hold). Among others from the industry, Lincoln National Corp. (LNC - Analyst Report) carries a favorable Zacks Rank #2 (Buy) and is worth noting.  
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ANI PHARMACE ANIP 29.54 +15.62%
FEDERATED NA FNHC 20.70 +4.18%
ALLIANCE FIB AFOP 17.95 +3.64%
GENTHERM INC THRM 36.91 +2.95%
GREEN PLAINS GPRE 29.78 +2.87%