The Committee on Foreign Investment in the United States (CFIUS), an agency that oversees the ramifications of foreign investments in the U.S., has recently approved the acquisition of U.S. insurance giant, Genworth Financial. In an effort to strengthen Genworth’s financial position, plans to be acquired by China Oceanwide Holding Group Company Ltd. will move forward. Final approval of the purchase hangs in the hands of insurance regulators in several United States jurisdictions and China.
While Genworth might be better known for its role in the mortgage insurance industry:
“[…] Genworth was also a major player in the life insurance, annuity and long-term care insurance markets in the United States. Genworth continues to have large blocks of life insurance, annuities and long-term care insurance on its books. It has suspended new sales of life insurance and annuities in recent years because of concerns about reserves for long-term care insurance obligations.”
Finally, according to Lu Zhiqiang, chairman of China Oceanwide “Successfully concluding the CFIUS process is a major step in our efforts to complete this transaction, which will strengthen Genworth’s financial position and allow us to bring Genworth’s insurance expertise to China.”
Read the full article by Think Advisor: Genworth Clears Major Obstacle to Completing China Oceanwide Deal