Genworth comments on IPO success

The LMI insurer yesterday listed on the ASX, achieving a 13 per cent gain in its first day of trading.

“We’re very pleased to have achieved this significant strategic priority for Genworth Financial and for Genworth Australia,” Genworth Australia chief executive Ellie Comerford said.

“As a publicly listed company, we are committed to maintaining our market-leading position, strong financial foundation, and excellent customer service.”

The IPO consisted of 220 million ordinary shares at an IPO price of $2.65 per ordinary shares, and raised approximately $583 million, subject to certain post-closing market stabilisation activities.

While the company will not retain any net proceeds of the IPO, the listing will provide Genworth Australia with additional financial flexibility and improved access to the capital markets, according to a company statement.

Genworth’s after-tax profit increased from $163.8 million to $179.2 million in 2013, a 9.4 per cent pick-up.

Gross written premiums for 2013 of $596.5 million were 9.47 per cent higher than 2012, mainly attributable to increased mortgage lending by customers owing to improved housing affordability as interest rates remained low in 2013, according to the company’s 2013 financial year accounts.

Genworth Financial, Inc. maintains ownership of between approximately 66 per cent and 69 per cent, subject to the outcome of certain post-closing market stabilisation activities.