Pam Schutz, EVP of Retirement & Protection for Genworth Financial had mentioned earlier this year at the Wachovia Securities Summit that “We also continue to explore other ways to safeguard the risk of outliving ones income including potentially longevity insurance and reverse mortgage offerings”. Last Thursday this became a reality when Senior Financial, Inc., a wholly owned venture investment subsidiary of Genworth Financial, Inc. announced that is has entered into an agreement to acquire Liberty Reverse Mortgage, Inc.
According to the press release Senior Finance will pay $50 million for Liberty at closing along with potential additional performance-based financial consideration. “This acquisition is a natural extension of our commitment to the senior market and our vision to deliver financial security to consumers,” said Schultz. “Liberty will allow Genworth to offer senior market consumers new products that provide liquidity, retirement income, and enable funding of their retirement safety net.” The deal is subject to various state and government approvals but is expected to close in the fourth quarter of 2007. To read a copy of the press release click the link below.