Lenders mortgage insurer Genworth Financial's mooted $800mm IPO is likely to take place in 2014 rather than this year due to regulatory/economic uncertainty,...
Lenders mortgage insurer Genworth Financial's mooted $800mm IPO is likely to take place in 2014 rather than this year due to regulatory/economic uncertainty, says global boss Tom McInerney. Genworth put its IPO on ice last year following first-quarter losses caused by higher claims and delinquencies. The parent company has been trying to list 30-40% of its Australian unit for about two years now. McInerney pointed to regulatory uncertainty and risks associated with Australia's reliance on commodities as some of the hurdles the company was weighing up. It was also not clear how new bank capital rules would affect lenders' use of home loan guarantees. Goldman Sachs and law firm Ashurst are believed to be busily working on Genworth's IPO prospectus, however, whether the float will take place this year remains to be seen. (VIEW LINK)
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