Genworth Financial Inc. GNW, -5.64% said Thursday it has decided to postpone the planned initial public offering of its mortgage insurer Enact Holdings Inc., citing trading volatility in that sector. “In light of the recent significant trading volatility in the mortgage insurance (MI) sector, Genworth’s Board of Directors determined that current market pricing for the planned offering does not accurately reflect Enact’s value,” Genworth Chief Executive Tom McInerney said in a statement. “Therefore, we have decided to postpone the IPO and will continue to evaluate our options as market conditions develop.” The company remains positive on its long-term outlook for the mortgage insurance sector given strong trends in the U.S. housing market, and expects further tailwinds as the economy recovers from the coronavirus pandemic, he added. Genworth has sufficient liquidity to meet near-term needs and is not dependent on the IPO, he said. Shares fell 2.6% premarket, but have gained 1.6% in the year through Wednesday, while the S&)P 500 SPX, -2.14% has gained 8%.
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