Does Genworth Negotiate Changes to Policies in Claim Status

[Arthur Rudnick]

"What kind of twisted logic does one need to use to conclude that a company with over $16 BILLION in LTCi RESERVES has "cash flow problems"


Scott,
Didn't you read the earlier post? They teach that in Insurance101 on the planet Krypton. You must have been out that day and missed the class.

 

[retread]

This has got to be one of the most ludicrous statements I've read on this forum in a long time.

Over $16 BILLION in long-term care RESERVES and they have "cash flow" problems?

What kind of twisted logic does one need to use to conclude that a company with over $16 BILLION in LTCi RESERVES has "cash flow problems"?

Gimmeabreak.

Being new to the LTC market and just recently appointed with John Hancock, I was surprised to find that John Hancock Life was bought by the Canadian insurance company, Manulife, in 2004. When I looked at the financials for JH, I see the assets listed at $100 billion. I know this can be deceiving, in that a lot of companies tout the assets of the parent company and not the subsidiary. I know the stock is trading about $10, and has been pretty dismal for most of the past 7 or so years, but the same is true for lot of good companies, given the state of the economy.

How did you find the $16 billion LTCi Reserve figure?

 

[yankee466]

How did you find the $16 billion LTCi Reserve figure?
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Maybe you should try reading a GNW quarterly report. The reserves, as of March 31, 2010, were $16.52 billion.

Since 1974, GNW has paid more than $5.7 billion in LTC
insurance claims.

Maybe they just made up the numbers for the stockholders benefit.

 

[retread]

How did you find the $16 billion LTCi Reserve figure?
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Maybe you should try reading a GNW quarterly report. The reserves, as of March 31, 2010, were $16.52 billion.

Since 1974, GNW has paid more than $5.7 billion in LTC
insurance claims.

Maybe they just made up the numbers for the stockholders benefit.

OK,... perhaps GNW makes this known pubilcly... I was asking about John Hancock that I was studying today, but I see that I confused my comment... (excuse me: senior moment).

I will try to find access to GNW quarterly report... they lost my paperwork and I don't have an appointment with them yet, so I don't have access to their producer site, however, there should be a way to gain access to it from a public site. I gather that the quarterly reports of companies must be reliable or face sanctions from the SEC.

 

[VolAgent]

OK,... perhaps GNW makes this known pubilcly... I was asking about John Hancock that I was studying today, but I see that I confused my comment... (excuse me: senior moment).

I will try to find access to GNW quarterly report... they lost my paperwork and I don't have an appointment with them yet, so I don't have access to their producer site, however, there should be a way to gain access to it from a public site. I gather that the quarterly reports of companies must be reliable or face sanctions from the SEC.

They have to file reserves periodically with the DOI if nothing else. Not sure if its quarterly or annually, but that is what you really want. Probably even drier than SEC quarterly filings, but I'd say the reserves have to be broken down by line for the DOI.

 

[Mr_Ed]

Being new to the LTC market and just recently appointed with John Hancock, I was surprised to find that John Hancock Life was bought by the Canadian insurance company, Manulife, in 2004. When I looked at the financials for JH, I see the assets listed at $100 billion. I know this can be deceiving, in that a lot of companies tout the assets of the parent company and not the subsidiary. I know the stock is trading about $10, and has been pretty dismal for most of the past 7 or so years, but the same is true for lot of good companies, given the state of the economy.

How did you find the $16 billion LTCi Reserve figure?

See attached.

 

[[email protected]]

To: Never A dull... - you are ignorant, naive, an *** or any combination of the three - saw your attachment - anyone who would take what the company issues and buy it should move to planet lala - thank you to those who recognize only a fool doesn't challenge/question how companies got the reported numbers...

I can say my net worth is 16 billion but what is the market value???? degree of liquidity, etc???? Ever hear of domestic captives - the latest in the vehicles being utilized to improve balance sheets for public consumption - too many in sales have no clue as to how to analyze a company and make a judgment on its true financial strength and odds of doing what they profess they will do;

alterning,amending contracts have several components: legal and financial being two but not all and never forget stockholders come first plus it's what we can't or do not see andknow that really matters...

How about we use our time and energy to research companies and find those most likely to deliver on what they promise/sell...


HAGD,

MALinehan

 

[Mr_Ed]

To: Never A dull... - you are ignorant, naive, an *** or any combination of the three - saw your attachment - anyone who would take what the company issues and buy it should move to planet lala - thank you to those who recognize only a fool doesn't challenge/question how companies got the reported numbers...

I can say my net worth is 16 billion but what is the market value???? degree of liquidity, etc???? Ever hear of domestic captives - the latest in the vehicles being utilized to improve balance sheets for public consumption - too many in sales have no clue as to how to analyze a company and make a judgment on its true financial strength and odds of doing what they profess they will do;

alterning,amending contracts have several components: legal and financial being two but not all and never forget stockholders come first plus it's what we can't or do not see andknow that really matters...

How about we use our time and energy to research companies and find those most likely to deliver on what they promise/sell...


HAGD,

MALinehan

spoken like a typical captive agent.

 

[scagnt83]

The actual contract being changed is a huge improbability.

Since insurance products/contracts are approved by the state; to amend or change a core provision of that contract would most likely require them to refile that contract with the state DOI.

Sure a contract can be changed if both parties agree; but dont forget that big brother has to approve insurance "contracts"; so its a bit more complicated than changing a rental agreement or something...


But as stated before; either party can agree to waive a restriction if they both agree to.

Reducing the benefit amount might consitute a material change to the contract provisions. So they might not actually be able to give a lesser amount.

But they could certainly waive the restriction on family members (not that they will... they just could if they wanted to).

If you could prove some important underlying reason that the client needs the family member to be the caregiver; they will be a lot more apt to be lenient.
(why does the client want this?)


It doesnt hurt to ask. Just dont be surprised when they say no; and dont get the clients hopes up.


Also, I doubt they would be worried about setting a precedent, they could very easily have the client and agent sign NDAs for the agreement.
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This has got to be one of the most ludicrous statements I've read on this forum in a long time.

Over $16 BILLION in long-term care RESERVES and they have "cash flow" problems?

What kind of twisted logic does one need to use to conclude that a company with over $16 BILLION in LTCi RESERVES has "cash flow problems"?

Gimmeabreak.

I am not saying they have problems or they dont have problems.

But imo surplus is more important than the reserves as a whole.

Genworth has $1.5 Billion in surplus LTC reserves...

It would be interesting to see a comparison between the top LTC dogs when it comes to surplus

 

[Mr_Ed]

...and never forget stockholders come first plus it's what we can't or do not see andknow that really matters...

How about we use our time and energy to research companies and find those most likely to deliver on what they promise/sell...


HAGD,

MALinehan

MAL,

Stockholders do NOT come first. If stockholders came first then all of the AIG insurance companies would have been liquidated to pay the AIG stockholders.

Policyholders come first. (That is why the AIG stockholders lost a ton of money but all the AIG insurance policyholders still had their claims paid and their cash values protected.)

Reserves are NOT an asset. Reserves are on the books as a liability because they are nothing more than future claims payments.

Bondholders come second.
Stockholders are last on the list to be paid.

This is insurance 101.

Are you a newly licensed agent?