Genworth Financial, Inc. (NYSE:GNW) today announced that its Board of Directors has authorized a share repurchase program under which Genworth may repurchase up to $350 million of its outstanding Class A common stock.
“The Board’s decision to authorize a share repurchase program reflects the company’s improved financial position and commitment to our strategic priorities including delivering shareholder returns,” said Tom McInerney, Genworth’s President and Chief Executive Officer. “We have entered a new chapter, and this announcement marks the first authorization to return capital to shareholders in over 13 years. We delivered outstanding financial performance over the last several quarters and are confident in our ability to return capital to shareholders over time while pursuing our growth initiatives.”
Repurchases under the authorized program would be funded from holding company capital, as well as future cash flow generation, including expected future dividends from Genworth’s ownership in Enact Holdings, Inc. Genworth expects the majority of share repurchases to occur following the repayment of its remaining 2024 debt.
Under the program, share repurchases may be made at the company’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and number of shares repurchased under the program will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The authorization has no expiration date and may be modified, suspended or terminated at any time.
