.... As Expected....

[Mr_Ed]

Mortgage insurer Genworth Financial Inc, one of the few remaining players in the long-term care insurance market, is expected to report a first-quarter profit in line with analysts' estimates, according to Thomson Reuters StarMine data. The company's long-term care unit will be in focus, after it took charges of about $1.5 billion in the prior two quarters.


What to Watch in the Day Ahead - Tuesday, April 28 | Reuters

 

[Arthur Rudnick]

originally posted by Mr_Ed

Mortgage insurer Genworth Financial Inc, one of the few remaining players in the long-term care insurance market, is expected to report a first-quarter profit in line with analysts' estimates, according to Thomson Reuters StarMine data. The company's long-term care unit will be in focus, after it took charges of about $1.5 billion in the prior two quarters.

And, your point is?
Shouldn't your concern be the results of their LTC division and not their Mortgage and/or other divisions?

They can lose money again in their LTC division, but still make a profit as a company.

After all, this is a LTCi Forum and not a Mortgage Forum.

 

[Mr_Ed]

originally posted by Mr_Ed




And, your point is?
Shouldn't your concern be the results of their LTC division and not their Mortgage and/or other divisions?

They can lose money again in their LTC division, but still make a profit as a company.

After all, this is a LTCi Forum and not a Mortgage Forum.

Their LTCi division will report a profit.

 

[yankee466]

Their LTCi division will report a profit.

Would a "smaller than expected loss" suffice in this argument?

I own a lot of their stock....so I am obviously hoping for a good report.

 

[Mr_Ed]

Would a "smaller than expected loss" suffice in this argument?

I own a lot of their stock....so I am obviously hoping for a good report.

I tripled my money in GNW stock back in 2009.... I wish I'd have kept it longer. I would have earned 10x that.

 

[Arthur Rudnick]

Genworth 1st Quarter Report:

Long Term Care Insurance


Long Term Care Insurance LTC net operating income was $10 million, compared with a net operating loss of $506 million in the prior quarter and net operating income of $46 million in the prior year. Benefits and other changes in policy reserves decreased $506 million after-tax versus the prior quarter and increased $66 million after-tax versus the prior year. The current quarter included favorable mortality on existing claims versus both the prior quarter and prior year partially offset by unfavorable severity given the mix of new claims with a higher average reserve. Results in the quarter included net unfavorable items of $7 million after-tax reflecting a refinement to a reserve calculation on the acquired block of business, partially offset primarily by a correction related to reinsurance. During the quarter, the company began implementing a process to accrue for profits followed by losses on business written since late 1995, but it had no impact on the current quarter financial results. The prior quarter impact of the unlocking of assumptions associated with the active life reserves on the acquired block, as well as additional adjustments to reserves, was $494 million after-tax. The loss ratio in the current quarter was 72 percent.

Results for the quarter included lower benefits from reduced benefit options of $3 million after-tax versus the prior quarter related to the premium increases approved and implemented to date.

Individual LTC sales of $10 million were lower than the prior quarter and the prior year. Sales are expected to continue at low levels in the near term due to the 2014 introduction of a higher priced product and ratings pressure, but build over time as new products are introduced.

 

[Mr_Ed]

Genworth 1st Quarter Report:

Long Term Care Insurance


Long Term Care Insurance LTC net operating income was $10 million, compared with a net operating loss of $506 million in the prior quarter and net operating income of $46 million in the prior year. Benefits and other changes in policy reserves decreased $506 million after-tax versus the prior quarter and increased $66 million after-tax versus the prior year. The current quarter included favorable mortality on existing claims versus both the prior quarter and prior year partially offset by unfavorable severity given the mix of new claims with a higher average reserve. Results in the quarter included net unfavorable items of $7 million after-tax reflecting a refinement to a reserve calculation on the acquired block of business, partially offset primarily by a correction related to reinsurance. During the quarter, the company began implementing a process to accrue for profits followed by losses on business written since late 1995, but it had no impact on the current quarter financial results. The prior quarter impact of the unlocking of assumptions associated with the active life reserves on the acquired block, as well as additional adjustments to reserves, was $494 million after-tax. The loss ratio in the current quarter was 72 percent.

Results for the quarter included lower benefits from reduced benefit options of $3 million after-tax versus the prior quarter related to the premium increases approved and implemented to date.

Individual LTC sales of $10 million were lower than the prior quarter and the prior year. Sales are expected to continue at low levels in the near term due to the 2014 introduction of a higher priced product and ratings pressure, but build over time as new products are introduced.

... that's about a billion dollars more income than you expected their LTCi division to make, Arthur.

 

[Arthur Rudnick]

Originally posted by Mr_Ed

... that's about a billion dollars more income than you expected their LTCi division to make, Arthur.

Scott,
I've got no dog in this fight, other than I want GNW to do well and continue to sell LTC product.

I would assume those are the same hopes of every agent out there.

 

[ltcadviser]

I tripled my money in GNW stock back in 2009.... I wish I'd have kept it longer. I would have earned 10x that.

In 15 minutes I saved 15% on my car insurance with GEICO. But everyone knows this.

 

[Arthur Rudnick]

Genworth considers strategic options, including going private​

(Reuters) - Life and mortgage insurer Genworth Financial Inc is considering going private and would be open to selling its long-term care insurance unit, among other strategic options, Chief Executive Tom McInerney said.

McInerney said that, although Genworth would be open to selling its long-term care insurance unit, it could be difficult to find a buyer. Asked whether a sale of this business is possible, he said: "We are open to that but I don't put much weight on that being something that'd be viable some time soon."

Genworth's shares rose as much as 11 percent on Wednesday.

The company, which was valued at about $4 billion as of Tuesday, controls 30-35 percent of the U.S. long-term care market.

Several insurers have exited the long-term care business in the past few years, bringing down the number of companies offering these policies to less than 20 currently from about 100 in 2002.

McInerney said in February that it was a mistake on the part of big insurers such as Metlife and Unum group to exit the business, which he considered to be attractive in the long run.

Genworth had also said at the time that the long-term care business remained "a priority".

McInerney said on Wednesday that long-term care was a "very complex business" with "a lot of challenges."

"But my view would be that it is very unlikely that anybody would be interested in that business at this point," he told Reuters.

Long-term care insurance assists people suffering from chronic conditions by covering costs for extended care at home or in assisted living facilities.

McInerney also confirmed that Genworth was considering a sale of its life and annuity business.

Bloomberg reported earlier this month that Genworth was looking to sell Genworth Life and Annuity Insurance Co (GLAIC).

"We're in the early stages of talking to players who might be interested in the GLAIC entity," McInerney said.

He said he expected a "significant loss" on the sale of the company's lifestyle protection business, which offers credit-linked insurance against illness, accident, unemployment, disability and death.

Genworth reported a profit for the first quarter on Tuesday after posting losses in the prior two quarters due to charges related to its long-term care business.

The company's shares were up 10 percent at $8.79 in late morning trading. The stock was among the top percentage gainers on the New York Stock Exchange. (Editing by Simon Jennings and Kirti Pandey)
04/29/2015