(Dover, DE – Insurance News 360) – The application from China Oceanwide Holdings Group Co. Ltd., and its affiliates to acquire Genworth Life Insurance Company and certain affiliates has been approved by Delaware Insurance Commissioner Trinidad Navarro. The application was filed more than two years ago, and in the past two years, the two companies have adjusted the transaction to address different questions posed by regulators at the state, federal, and international levels.
Commissioner Navarro approved the application after a November 28, 2018 public hearing, where the findings of former Vice Chancellor Stephen P. Lamb were explained. Judge Lamb was appointed to preside at the public hearing and present him with findings of facts, conclusions of law, and a recommendation as to whether the proposed transaction meets Delaware’s legal requirements for approval.
The Delaware Department of Insurance used internal expert financial staff, along with outside experts to scrutinize the financial, actuarial and data security aspects of this transaction, agreed to notice the public hearing after the parties recently agreed to deposit $375 million in liquid funds into GLIC. These additional liquid funds will be invested in GLIC and available to pay policyholders was cited in the testimony of the Department witness, by Judge Lamb in his findings, and today by Commissioner Navarro as being vital to the approval of this transaction. “I am satisfied that China Oceanwide brings immediate new value to the policyholders, and I look forward to working with them and with GLIC’s management to assure that the safety of benefits to GLICs policyholders is always considered the top priority.”
Commissioner Navarro’s approval includes certain additional conditions to assure the ongoing safety of GLIC’s policyholders. This includes restrictions on the parties to assure that GLIC’s funds are used for policyholders; prohibiting any dividends without the Department’s prior approval and tasking China Oceanwide and GLIC to establish teams to continuously meet and respond to Department requests focused on measures of financial health.
“I know that no one act will fix all the challenges of long term care, but I am satisfied that this approval is a step forward, to be followed by many future steps to protect the policyholders,” Navarro said.
Source: Delaware Insurance Department.