PARIS (dpa-AFX) - Genworth Financial, Inc. (GNW) said it has entered into exclusive negotiations with French insurer AXA S.A. (AXAHY.PK) after receiving an irrevocable offer to purchase its lifestyle protection insurance business.
The sale price is expected to be approximately $510 million and the company will record an after-tax loss of approximately $310 million in the second quarter, related to the expected sale and pension settlement costs.
The company expects to accept the offer and execute an associated purchase agreement upon completion of the French works council consultation process. The sale is expected to close by the end of 2015.
Net proceeds from the transaction, net of pension settlement costs and transaction related expenses, are estimated to be approximately $400 million.
Genworth plans to use these proceeds to advance compliance with the Private Mortgage Insurer Eligibility Requirements and to reduce debt levels.
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