* Co to take an after-tax charge of about $40 mln
* Shares rise about 3 percent in extended trade
March 27 Genworth Financial Inc will
sell its wealth management and alternative investment businesses
to private equity firms Aquiline Capital Partners and Genstar
Capital for about $412.5 million as the insurer looks to raise
funds to repay debt.
Genworth, once part of industrial conglomerate General
Electric, is selling the businesses as it faces increased
scrutiny from ratings agencies, largely due to losses in its
Reuters reported in February that the two private equity
firms were in negotiations with Genworth to buy the two
Genworth will take an after-tax charge of about $40 million
related to the sale, with about $35 million recorded in the
first quarter, the company said.
Analysts are expecting earnings of $160 million in the first
quarter, according to Thomson Reuters I/B/E/S.
Genworth sold its tax and accounting financial adviser unit
to California-based Cetera Financial Group last April.
The company said in January it was reorganizing itself to
separate its mortgage insurance business from the rest of the
company, reducing the risk of default on its bonds.
Genworth shares were up about 3 percent at $10.48 in
extended trade. They closed at $10.19 on the New York Stock
Exchange on Wednesday.