Genworth Financial said Monday that it cut a deal to sell its Medicare supplement business to healthcare giant Aetna for $290 million.
The move comes just six months after Genworth shed another side of its business as it has worked towards getting its bottom line back into the black in the wake of huge losses during the recession.
In January, the Glen Allen-based company did away with many of its annuities products, resulting in the elimination of 130 local jobs.
It’s unclear whether this latest deal with Aetna would affect any local Genworth employees.
Genworth CEO Michael Fraizer said in a prepared statement that the move is part of the company’s strategy to free up capital.
The deal is expected to close during the fourth quarter. Genworth said the final proceeds of the deal should be around $240 million.
As part of the transaction, Genworth will agree to sell its Continental Life Insurance subsidiary which is based in Brentwood, Tenn., and American Continental Insurance Co.
J.P. Morgan Securities advised Genworth on the deal.
Genworth has approximately 6,500 total employees including 1,300 in its headquarters off West Broad Street in Glen Allen, not far from Innsbrook.
Genworth Financial said Monday that it cut a deal to sell its Medicare supplement business to healthcare giant Aetna for $290 million.
The move comes just six months after Genworth shed another side of its business as it has worked towards getting its bottom line back into the black in the wake of huge losses during the recession.
In January, the Glen Allen-based company did away with many of its annuities products, resulting in the elimination of 130 local jobs.
It’s unclear whether this latest deal with Aetna would affect any local Genworth employees.
Genworth CEO Michael Fraizer said in a prepared statement that the move is part of the company’s strategy to free up capital.
The deal is expected to close during the fourth quarter. Genworth said the final proceeds of the deal should be around $240 million.
As part of the transaction, Genworth will agree to sell its Continental Life Insurance subsidiary which is based in Brentwood, Tenn., and American Continental Insurance Co.
J.P. Morgan Securities advised Genworth on the deal.
Genworth has approximately 6,500 total employees including 1,300 in its headquarters off West Broad Street in Glen Allen, not far from Innsbrook.