GE to Divest Itself of Genworth

Genworth Financial, the Richmond, Va.-based parent of what was formerly known as GE Capital Mortgage Insurance Co., Raleigh, N.C., has confirmed that General Electric plans to cut its holdings in the company to below 20% by year-end and fully divest itself of Genworth by the end of 2006.This would complete a process started in May 2004, when the Stamford, Conn.-based GE made an initial public offering that sold 30% of Genworth. GE made the announcement in a Nov. 18 news release, saying it was selling most of its Insurance Solutions unit to Swiss Re. "Since GE's ownership of Insurance Solutions and Genworth will go below 20% and consistent with generally accepted accounting principles, GE will report the majority of Insurance earnings as 'discontinued operations' commencing with the fourth quarter 2005," the company said, adding that it would sell all its ownership in Genworth by the end of 2006.