Virginia-based insurance giant Genworth Financial Inc. said Monday that documents has been submitted to insurance regulators in New York to get a reapproval of the company's long-delayed acquisition by a China-based company.
China Oceanwide Holdings Group Co. Ltd. submitted the supplemental materials to the New York Department of Financial Services, Genworth said.
The agency's previous approval of the acquisition had expired. After a second review, the agency wanted Genworth to provide additional capital to its New York-domiciled insurance company, Genworth Life Insurance Co. of New York, or GLICNY.
Genworth, which sells long-term care and home mortgage insurance, said the filings reflect the company's agreement to make a $100 million capital contribution to Genworth Life at the closing of the proposed acquisition. The capital contribution would come through the life insurance company issuing a surplus note to a Genworth holding company.
The deal for China Oceanwide to acquire Genworth for $5.43 a share was first announced in October 2016, and Genworth shareholders approved the acquisition in March 2017. Since then, however, the acquisition has been delayed 13 times as Genworth has sought approval by numerous state, national and international regulatory agencies.
Genworth and Oceanwide are trying to close the acquisition around March 31. The companies also are submitting supplemental information to other U.S. insurance regulators.
"However, both parties acknowledge that they may need to be flexible with the specific closing date given potential uncertainties or timing delays that may arise because of the impact of the coronavirus outbreak in the United States and China and the resulting remote work policies in effect," Genworth said in a statement Monday.
Like some other Richmond-area companies, Genworth said last week it was asking its employees to work at home to help curb the spread of the coronavirus.
Oceanwide also still needs to get clearance from regulators in China for the currency conversion and transfer of funds to complete the transaction.
Shares of Genworth fell 5.22%, or 21 cents, to close at $3.90.