Genworth Mortgage Insurance could hand back up to $250 million to its shareholders.
The company is planning a $202 million capital reduction in the form of a 34 cents per share distribution and is also considering a $48 million share buyback.
Genworth says that if shareholders do not approve its distribution and share consolidation resolutions at the May 5 annual general meeting, it may instead look at a $250 million buyback.
"This capital management initiative represents another important step in our ongoing journey to manage our capital base at a level which balances our objectives of meeting our policyholder obligations, delivering long-term shareholder returns and having the flexibility to grow the business in the future," Genworth chief executive Georgette Nicholas said in a statement on Thursday.
