Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

GENWORTH FINANCIAL, INC.

(GNW)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Long-term care policies loom over U.S. life insurance results

10/26/2018 | 10:53am EDT
A MetLife Inc  building is shown in Irvine, California

(Reuters) - Big U.S. life insurers are bracing for elevated payouts to owners of long-term care policies, which cover expenses like assisted living for infirmed and elderly customers.

Insurers that have long-term care businesses likely set aside more funds for claims on older policies during the third quarter, analysts said.

Unum Group said on Wednesday that it had boosted long-term care reserves by $593 million, after taxes, partly reflecting its expectation that claims would remain elevated going forward. MetLife Inc and Genworth Financial Inc are among those scheduled to report next week. Canada's Manulife Financial Corp is due to report on Nov. 7.

The pattern will continue for long-term care insurers through 2019, with many boosting reserves by at least ten percent, Fitch Ratings said in a recent report.

Some insurers have been reviewing assumptions they made when writing policies many years ago, when life expectancies were shorter and health care expenses were lower. Premiums they initially set have not been enough to cover claims from customers who live well into their 80s or 90s and require increasingly expensive care in nursing homes or their own homes.

"The good news is that we're living longer and the bad news is that we're living longer," said Michael Frank, an actuary and president of Aquarius Capital, a consultancy in Port Chester, New York. "Long-term care insurers are dealing with multiple crises."

In August, Prudential Financial Inc said it was boosting long-term care reserves by $1.5 billion, a move that analysts said could be a harbinger for others.

At issue was an assumption about so-called "morbidity improvement," a term that actuaries use to describe people becoming healthier and needing less long-term care in the future.

Some state regulators allow insurers to predict brighter outcomes, thereby lessening reserves, but others, including New York, forbid that assumption, industry and regulatory sources told Reuters.

"This is a hot-button item in the world of long-term care insurance," said Fred Andersen, who leads a National Association of Insurance Commissioners group examining morbidity improvement assumptions, along with other factors that affect reserves and premiums.

Prudential stopped selling long-term care insurance in 2012, but still faces substantial costs from old policies. The insurer no longer considers morbidity improvement when calculating long-term care reserves, Chief Financial Officer Robert Falzon told analysts in August.

Prudential's decision may cause other insurers to consider dropping the assumption too, said Moody's Senior Credit Officer Laura Bazer.

(Reporting by Suzanne Barlyn; editing by Lauren Tara LaCapra and Chizu Nomiyama)

By Suzanne Barlyn


© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
FIRST FINANCIAL CORPORATION -0.37% 42.66 Delayed Quote.10.22%
GENWORTH FINANCIAL, INC. -0.67% 4.47 Delayed Quote.18.25%
JUST GROUP PLC -0.49% 91.55 Delayed Quote.30.97%
MANULIFE FINANCIAL CORPORATION 0.04% 25.06 Delayed Quote.10.60%
METLIFE, INC. -1.19% 65.81 Delayed Quote.40.17%
PRUDENTIAL FINANCIAL, INC. -0.64% 113.27 Delayed Quote.45.09%
UNUM GROUP -2.65% 27.87 Delayed Quote.24.80%
WILL GROUP, INC. -0.38% 1298 End-of-day quote.29.03%
All news about GENWORTH FINANCIAL, INC.
09/27GENWORTH FINANCIAL : Gets Debt Rating Upgrades from Moody's, S&P
MT
09/27GENWORTH FINANCIAL : Receives Ratings Upgrades from Moody's and S&P
PR
09/23GENWORTH FINANCIAL INC : Completion of Acquisition or Disposition of Assets, Financial Sta..
AQ
09/23GENWORTH FINANCIAL : Unaudited Pro Forma Condensed Consolidated Financial Statements (Form..
PU
09/21GENWORTH FINANCIAL : Settles About $296 Million Promissory Note with AXA
MT
09/21GENWORTH FINANCIAL : Announces Retirement in Full of its Promissory Note with AXA
PR
09/20GENWORTH FINANCIAL : Completes Enact Subsidiary IPO
MT
09/16ENACT : Shares Rise in Stock Market Debut
MT
09/13Genworth Revives Enact Holdings IPO, Targets over $3 Bn Valuation
CI
09/13Enact Holdings Announces IPO of Shares Offered by Genworth Holdings
MT
More news
Analyst Recommendations on GENWORTH FINANCIAL, INC.
More recommendations
Financials (USD)
Sales 2021 7 997 M - -
Net income 2021 - - -
Net Debt 2021 - - -
P/E ratio 2021 2,85x
Yield 2021 -
Capitalization 2 268 M 2 268 M -
Capi. / Sales 2021 0,28x
Capi. / Sales 2022 0,28x
Nbr of Employees 3 000
Free-Float 84,3%
Chart GENWORTH FINANCIAL, INC.
Duration : Period :
Genworth Financial, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GENWORTH FINANCIAL, INC.
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 2
Last Close Price 4,47 $
Average target price 4,00 $
Spread / Average Target -10,5%
EPS Revisions
Managers and Directors
Thomas J. McInerney President, Chief Executive Officer & Director
Daniel J. Sheehan EVP, Chief Financial & Investment Officer
Melina E. Higgins Independent Non-Executive Chairman
G. Kent Conrad Independent Non-Executive Director
Debra J. Perry Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
GENWORTH FINANCIAL, INC.18.25%2 283
ALLIANZ SE-1.06%94 587
MARSH & MCLENNAN COMPANIES, INC.41.75%84 024
CHUBB LIMITED20.50%83 406
ZURICH INSURANCE GROUP LTD6.37%64 137
BAJAJ FINSERV LIMITED108.88%39 555