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Genworth Launches IPO, Rebrands as Enact

Genworth Mortgage Holdings Inc. has announced that it has commenced an initial public offering (IPO) of 22,576,140 shares of common stock, all of which are being offered by the selling stockholder, Genworth Holdings Inc. (GHI), a wholly-owned subsidiary of Genworth Financial. The IPO price is expected to be between $20.00 and $24.00 per share, and shares are expected to trade on the Nasdaq Global Select Market under the ticker symbol "ACT."

Genworth has also announced that the company is fully re-branding, changing its name to Enact Holdings Inc.

In addition to the shares being sold in the IPO, certain investment funds managed by Bayview Asset Management LLC have agreed to purchase four million shares of Enact's common stock from GHI in a concurrent private sale at a price per share equal to the IPO price less the underwriting discount per share. The private sale is contingent upon the IPO, and is subject to customary closing conditions.

Genworth’s U.S. Mortgage Insurance division reported an income of $126 million in Q1 of 2021, compared to $95 million in Q4 of 2020, and $148 million in the prior year. U.S. MI's current quarter results reflected losses of $55 million and a loss ratio of 22%, which were driven by $44 million of losses from new delinquencies and $10 million pre-tax reserve strengthening on pre-COVID-19 delinquencies. New delinquencies decreased by 16% from 11,923 in the prior quarter to 10,053. Approximately 54% of new primary delinquencies in the current quarter were reported in forbearance plans which may cure at elevated rates relative to historical performance.

"I am pleased with the company's strong first quarter performance, as well as our progress on our strategic plan," said Tom McInerney, Genworth President and CEO. "We have remained nimble and taken decisive actions to ensure Genworth is well positioned to create value for our stakeholders into the future."

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.
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