We are short Genworth: We See Almost No Chance Of Regulatory Approval. This Deal Would Be A Disaster For Policyholders. $GNW
hindenburgresearch.com/genworth-we-se…
hindenburgresearch.com/genworth-we-se…
Genworth’s proposed acquirer, China Oceanwide, looks to be in the midst of a deep liquidity crunch. $GNW 
Following multiple FOIA requests, we were able to locate audits for the opaque Chinese conglomerate that show consistently negative cash flow and debt levels spiking to clearly unsustainable levels. $GNW
We see no chance of regulators approving this deal. Doing so would hand control of $GNW's $70b in policyholder assets to a faltering entity in a jurisdiction with limited recourse.
A deep dive into $GNW's insurance carriers show that the company looks starkly under-reserved. Our analysis indicates that Genworth’s LTC exposure is under-reserved by at least $9.9 billion.
Overall we see this deal failing followed by an unwinding of Genworth. We’ve taken a significant short position in $GNW's equity.
