Genworth Plunges on China Deal Doubts, Turns to Backup Plan (1)

Genworth Financial Inc. shares plunged after the company said it’s turning to its backup plan, including a potential partial initial public offering for its U.S. mortgage insurance business, after more than four years of delays trying to finalize a $2.7 billion takeover by China Oceanwide Holdings Group Co.

The insurer is also keeping the door open in case China Oceanwide completes its remaining steps in the deal, the company said Monday in a statement. Genworth shares plummeted 25% to $2.83 at 9:42 a.m. in New York.

Genworth’s agreement with China Oceanwide, struck in 2016, was seen as a lifeline ...