Delaware Gives China Oceanwide-Genworth Update

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Officials at the Delaware Department of Insurance say they’re still reviewing efforts by China Oceanwide Holdings Group Co. Ltd. to acquire Genworth Financial Inc.

China Oceanwide has been trying to acquire Genworth since October. Once challenge the companies have been facing is resistance from the Committee on Foreign Investment in the United States (CFIUS).

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CFIUS, a secretive agency that reviews international deals for national security concerns, seems to have raised questions about the possibility that China Oceanwide could get access to Genworth policyholders’ personal information.

Genworth has been a major provider of life insurance, annuities and stand-alone long-term care insurance.

Delaware officials note Genworth and China Oceanwide are also seeking approvals from other regulators inside and outside the United States as well as from CFIUS.

Genworth is based in Richmond, Virginia, but it needs approval from Delaware because one of its major subsidiaries, Genworth Life Insurance Company (GLIC), has its official domicile in Delaware.

Genworth and China Oceanwide are taking longer than they had hoped to complete the deal, and the Delaware department will need more information to complete its review, officials say.

“Genworth and [China Oceanwide] have stated that they will continue to work with the department to respond to its outstanding inquiries and information requests focused on Delaware’s separate statutory and regulatory requirements, including assuring that any proposed transaction is fair to GLIC’s policyholders and the public and that the surviving long-term care company is sufficiently solvent,” Delaware officials say in their Genworth deal status update.

In Delaware, “the most significant issue remaining is an agreement on the valuation of the remaining companies if the life insurance company is separated from the long-term care company, as is presently proposed,” officials say.

“At this point, no timeframe can be estimated as to whether and when the department might make a final determination and, if appropriate, schedule a hearing,” officials say.

—Read Genworth Talks About May 2018 on ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on Facebook and Twitter.

Genworth says it’s talking to an outside company about ‘mitigation strategies.’

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