Genworth Financial said Tuesday that its chief financial officer plans to step down and will be replaced by Dan Sheehan, the insurer’s current chief investment officer, as it continues to work toward being acquired by China Oceanwide Holdings.
Sheehan has been with the Virginia-based insurance company and its predecessor company, a General Electric unit, for more than two decades, serving in leadership roles in the investments and risk teams, the company said. He became the CIO in April 2012 and managed Genworth's $73 billion investment portfolio. The company plans for him to retain his CIO role even as he takes on the new job.
“I am confident Dan will seamlessly assume these responsibilities, with the support of our outstanding finance and investments teams, as we seek to execute near-term actions to support Genworth's liquidity and continue to pursue the transaction with China Oceanwide,” said Tom McInerney, president and chief executive officer of Genworth.
China Oceanwide Holdings Group’s $2.7 billion acquisition of Genworth Financial has been in the works since October 2016, with the companies agreeing to a 15th waiver pushing off deadlines in June. The previous deadline of June 30 was extended to no later than Sept. 30 of this year.
Genworth Financial said at the time that the extension would give the company time to address its approximately $1 billion in debt maturing in 2021 and its liabilities under the lawsuit brought against the company by French insurer AXA on payment protection insurance mis-selling claims.
In July, the company said it reached an agreement with AXA to settle the dispute, agreeing to pay the French insurer an additional GBP 100 million ($125 million), on top of the interim cash payment made in the beginning of the year. The mortgage insurer also agreed to issue a secured promissory note to AXA.
Sheehan will be succeeding Kelly Groh, who has been with the company for 24 years. Groh plans to retire in early August after the completion of the company’s second-quarter financial close process, Genworth said.
McInerney said that Groh had expressed a desire to retire “to be closer to her family on the west coast,” adding that the company has a transition plan in place that, “We believe creates a strong foundation for Genworth's future.”
"In her five years as CFO, Kelly's guidance has been critical as we worked to improve our liquidity and overcome hurdles throughout the China Oceanwide transaction process,” McInerney said.
Additionally, Genworth said it is appointing Brian Haendiges as executive vice president and chief risk officer. The role will be effective on Sept. 8 and he will assume the CRO responsibilities from Groh, who had been serving as interim CRO since the beginning of the year, Genworth said.
Most recently, Haendiges was a senior vice president of U.S. pricing and product management at MassMutual, and prior to his nine years at MassMutual, Haendiges worked at ING and Aetna, the company said.