General Electric to get out of Genworth Financial

General Electric has said that the company plans to sell its entire stake in the Genworth Financial Inc. This would fetch them around $2.8 billion and this announcement comes just around 2 years after it took the life and mortgage insurance unit public.

The decision to sell the stake in this company comes as the company is aiming to get out of the insurance sector and focus on faster-growing businesses. GE Chief Executive Jeffrey Immelt had highlighted this plan in the media sometime ago.

GE already has agreed to sell much of its reinsurance business to Swiss Re for up to $7.6 billion. The latest deal from the company would see them sell 71 million Genworth Class A shares to investors.

They are also planning to sell 15 million Genworth Class B shares to Genworth at the same net price per share. This is worth around $490 million as per the current share price of the company in the stock market.