Genworth Sells Wealth Management Business, Incurs Loss

Published March 28, 2013, 3:44 p.m. EDT

1 Min Read

Genworth Financial Inc. is selling its wealth management business to the Aquiline Capital Partners-Genstar Capital partnership for an expected sale price of $412.5 million.

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The sale includes the firm’s alternative solutions provider Altegris. This transaction is “another step” in executing Genworth’s strategic goal “to generate capital from a noncore business” and increase financial flexibility, said executive vice president and chief financial officer, Martin Klein.

That goal, however, comes with a price tag.

Genworth said it will record an after-tax loss of approximately $40 million, of which $35 million will be included in the first quarter 2013 earnings and $5 million after closing the deal in the second half of 2013.

According to executives, the sale is expected to generate strong business growth going forward.

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