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Genworth Financial, Inc. is postponing the previously announced initial public offering of its subsidiary Enact Holdings, Inc. The company is citing volatility in the mortgage insurance sector as the reason for its postponement.
"In light of the recent significant trading volatility in the mortgage insurance (MI) sector, Genworth's Board of Directors determined that current market pricing for the planned offering does not accurately reflect Enact's value. Therefore, we have decided to postpone the IPO and will continue to evaluate our options as market conditions develop," said Tom McInerney, Genworth president and CEO. "Our primary objective has been and will continue to be protecting the value of Enact. We maintain our positive long-term outlook for the MI sector, given strong trends in the U.S. housing market and expected tailwinds as the economy recovers from COVID-19."
According to a press release, Genworth's liquidity position to meet its near-term obligations is not dependent on the IPO, with the holding company having approximately $757 million in cash and liquid assets as of March 31, 2021.