Fairfield, Conn. (Nov. 20, 2003) — Global technology and services conglomerate GE said it would spin off its life and mortgage insurance operations in an initial public offering of a newly formed entity to be named Genworth Financial Inc.
The IPO is expected to be completed by the first half of 2004.
Although GE executives were restricted on comment regarding details due to SEC guidelines, included in that financial-services spin-off would most likely be broker/dealer GE Independent Accountants Network. The Schaumburg, Ill.-based unit has roughly 1,200 reps.
“It will be business as usual,” said a GE spokesman.
GE said it would sell roughly 30 percent of the equity in Genworth and, over a three-year period, reduce its stake in the concern.
The plan is part of the company’s previously announced strategy of paring down the percentage of its insurance-related assets from 40 percent, to 15 percent.
— WebCPA staff
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