Richmond, Va.-based mortgage insurer Genworth Financial announced it has reached an agreement to sell its Genworth Seguros Mexico, S.A. de C.V. holding to HDI-Gerling International Holding AG.

The companies did not release a price for the sale which includes the automobile, property and casualty, life and personal accident insurance business lines that Seguros, based in Leon, Mexico, distributes through independent professional insurance agents. HDI-Gerling is headquartered in Hanover, Germany.

“This transaction allows Genworth to focus on its core businesses in Mexico–specifically, lifestyle protection insurance and mortgage insurance,” said Alejandro Rivero-Andreu, president of Genworth Financial in Mexico.

The company explained that lifestyle protection insurance maintains customers' monthly repayments on financial commitments such as mortgages, personal loans and credit cards if they are unable to make payments due to involuntary unemployment, accident, sickness or hospitalization.

Mortgage insurance provides an option for homebuyers who want to buy a home with less than a 20 percent down payment on a mortgage loan while protecting lenders against borrower default.

Genworth said in a statement that it is well capitalized to continue growing and maintaining an active market share in Mexico.

“We will focus on the mortgage insurance and lifestyle protection insurance businesses where we have specialized in the past and have significant global experience,” promised Mr. Rivero-Andreu.

“We believe that under HDI-Gerling International Holding AG's management, Genworth Seguros in Mexico will remain a strong and successful business,” he added.

Genworth Seguros employs approximately 340 associates across Mexico.

The company said HDI-Gerling International Holding AG has filed the initial proceedings to obtain the corresponding approvals from the Secretary of the Treasury and Public Credit and the National Insurance and Bonding Commission and that Genworth said it expects closing will take place following regulatory approvals.

Genworth operates through three segments: Retirement & Protection, US Mortgage Insurance and International.

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Genworth Sells Seguros Mexico

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