Genworth Financial (NYSE: GNW) reported Q4 EPS of $0.65, may not compare to the analyst estimate of $0.21.

Strategic Update

Genworth and China Oceanwide Holdings Group Co., Ltd. (Oceanwide) continue to work towards closing their previously announced proposed transaction as soon as possible.

Genworth and Oceanwide have re-filed their joint voluntary notice with the Committee on Foreign Investment in the United States (CFIUS). In connection with the new joint voluntary notice, the parties have provided CFIUS with detailed information about an additional data security risk mitigation proposal involving a U.S. third-party service provider. The acceptance of the refiling of a joint voluntary notice by CFIUS triggers a new 30-day review period, which may be followed by an additional 45-day investigation period. Additional information about the CFIUS review process can be found in the definitive proxy statement filed by Genworth with the Securities and Exchange Commission on January 25, 2017.

The parties also continue to engage with the Delaware Department of Insurance (Delaware). The delay in the review process is due to the difference in opinion of the fair market value for Genworth Life and Annuity Insurance Company (GLAIC), which must be agreed upon in order to complete the unstacking transaction. The parties continue to work towards an acceptable solution in order to move forward in the transaction approval process.

In addition to clearance by CFIUS and approval from Delaware, the closing of the proposed transaction remains subject to the receipt of required regulatory approvals in the U.S., China, and other international jurisdictions and other closing conditions. Genworth and Oceanwide continue to be actively engaged with the relevant regulators regarding the pending applications.

Due to the delay in obtaining regulatory approvals and the closing of the proposed transaction, Genworth has decided to pursue a secured debt transaction in order to address its upcoming 2018 debt maturity. More details with respect to the terms and structure of the secured debt transaction will be announced upon the planned launch in the near future.

"Our strong full year and fourth quarter results, as well as the continued progress towards achieving our multi-year LTC rate action plan, demonstrate Genworth's operational discipline and focus on maximizing long-term value for our stakeholders," said Tom McInerney, president and CEO of Genworth. "We continue to believe the transaction with Oceanwide represents the greatest and most certain value for our stockholders, and we are pursuing a secured debt transaction to address our 2018 debt obligation, and are continuously evaluating the strategic alternatives we may need to exercise to insulate our U.S. mortgage insurance business from continued ratings pressure."

LU Zhiqiang, chairman of Oceanwide, added: "Despite the delays in receiving regulatory approvals, Oceanwide continues to work diligently with Genworth towards closing the transaction as soon as possible. We remain committed to the transaction, which would provide Oceanwide with the opportunity to enhance our global insurance expertise and bring better insurance market solutions to China."

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