Genworth Aussie Unit to Buy Vero MI

The Australian mortgage insurance subsidiary of Genworth Financial, Richmond, Va., has agreed to acquire Vero Lenders Mortgage Insurance Ltd., Sydney, Australia, in a deal valued at US$165 million.There will be a "substantial post-closing dividend" paid pending regulatory approval that will affect the compensation. Vero's book of business has been in runoff status since April 2003. Genworth said it is in a strong position to manage the runoff portfolio because of its position in the mortgage insurance business both in Australia and globally. "The acquisition of Vero LMI is a natural addition to our existing portfolio in this region," said Brian Hurley, president of Genworth's international mortgage insurance. "We have ongoing business relationships with 11 of Vero's 12 former customers and a good knowledge of the market." Vero LMI is a subsidiary of Vero Insurance Ltd., which in turn is wholly owned by Promina Group Ltd., a general insurance and financial services provider in Australia and New Zealand.