Genworth Targets B Valuation in Mortgage Insurance Unit's IPO

Genworth Financial Inc. on Monday revived plans for an initial
public offering (IPO) of Enact Holdings, aiming for a valuation of
more than $3 billion for its mortgage insurance unit, according to
a regulatory filing.

The company had deferred the IPO
https://www.reuters.com/article/us-enact-ipo-idUSKBN2CU0ZR in May
due to market volatility, with Chief Executive Officer Tom
McInerney saying the market pricing did not accurately reflect the
company's value.

Enact's existing shareholders plan to raise as much as $266.21
million by selling about 13.31 million shares in the IPO, priced
between $19 and $20 per share. Proceeds from the sale will not go
to the company.

At the upper end of the price range, the company is eyeing a
valuation of nearly $3.3 billion.

Founded in 1981, Raleigh, North Carolina-based Enact provides
credit protection to mortgage lenders and investors and operates in
all 50 U.S. states and the District of Columbia.

Enact generated a profit of $370 million last year, compared to
$678 million a year earlier, the
filing showed, due to higher loss reserves related to the
COVID-19 pandemic.

Net insurance policies written in the same period grew to $99.9
billion from $62.4 billion a year earlier.

Bayview Asset Management, which is focused on investments in
mortgage and consumer credit, has agreed to purchase shares of
Enact's common stock in a private placement concurrent with the
IPO.

Goldman Sachs and J.P. Morgan are the lead book-running managers
for the offering, after which Enact will be listed on the Nasdaq
under the symbol "ACT."

(Reporting by Sohini Podder in Bengaluru; Editing by Vinay
Dwivedi)