Genworth on Review

[Arthur Rudnick]

originally posted by Mr_Ed

... and the stock is up 3% already today!

Impressive, considering the stock is down 53% from a year ago.

 

[Mr_Ed]

originally posted by Mr_Ed



Impressive, considering the stock is down 53% from a year ago.

The stock is up 1,000% from when I bought it at .79 cents per share six years ago.

 

[billberry12]

+1 , 2008 was a good bad year.

 

[Arthur Rudnick]

Genworth rebounds as LTCI results better than expected | LifeHealthPro

 

[VolAgent]

I find it interesting that the numbers posted show a loss even after accounting for the charges related to reserves. Are there even more reserves being set aside than the article references, or is Genworth just bleeding money?

 

[Arthur Rudnick]

Originally posted by VolAgent

I find it interesting that the numbers posted show a loss even after accounting for the charges related to reserves. Are there even more reserves being set aside than the article references, or is Genworth just bleeding money?

I hope so......
They have added almost $1 BILLION to prop up their Reseves in only the last 2 quarters.

Their net loss was $761 million and of that, $478 million were due to the Reserve shortage.

Now, totally they have tons of billions of money set aside in their Reserves. But they have huge amounts of claims against specific blocks of business where the Reserves are under what the DOI mandates. So, it's these particular blocks ("policies the firm acquired", which leads me to believe it was the Traveler's blocks from the mid-90's) which are hurting them.

 

[VolAgent]

I hope so......
They have added almost $1 BILLION to prop up their Reseves in only the last 2 quarters.

Their net loss was $761 million and of that, $478 million were due to the Reserve shortage.

Now, totally they have tons of billions of money set aside in their Reserves. But they have huge amounts of claims against specific blocks of business where the Reserves are under what the DOI mandates. So, it's these particular blocks ("policies the firm acquired", which leads me to believe it was the Traveler's blocks from the mid-90's) which are hurting them.

So if they lost 761 and 478 of that was reserves, that still means they actually lost $283 million due to ongoing operations in that quarter. That is pretty scary. It means they are losing money on an ongoing basis, completely ignoring the one-time charges for reserves.

Now, is that due to LTC or some other business unit, I don't know. But it does mean that at is currently sits, Genworth as a company is not profitable.

 

[Justin Bilyj]

That is pretty scary. It means they are losing money on an ongoing basis, completely ignoring the one-time charges for reserves.

Sounds like its ripe to become a government agency, I wouldn't be surprised if the coming boomer tsunami doesn't cause some progressive lawmakers to think about nationalizing such companies.

 

[Arthur Rudnick]

For those who are interested, here's Genworth's 4th Qtr. announcement from their website.


http://finance.yahoo.com/news/genworth-financial-announces-fourth-quarter-220200214.html

 

[Mr_Ed]

So if they lost 761 and 478 of that was reserves, that still means they actually lost $283 million due to ongoing operations in that quarter. That is pretty scary. It means they are losing money on an ongoing basis, completely ignoring the one-time charges for reserves.

Now, is that due to LTC or some other business unit, I don't know. But it does mean that at is currently sits, Genworth as a company is not profitable.

They wrote off the balance of their goodwill.
It's just a loss on paper, like depreciation.
It's not a loss on cash or operations.



"The company also recorded non-cash charges of $340 million after-tax reflecting the write off of remaining life insurance and LTC goodwill"