Genworth Acquisition

[DHK]

Yeah... let's sell CA Partnership LTC policies and partner your long term care needs with the Chinese?

I'd rather have the eggroll.

 

[Mr_Ed]

originally posted by Mr_Ed



Scott,
This move has absolutely nothing to do with Genworth's policyholders.
This move has everything to do with Genworth's shareholders.

As far as the Chinese, keep in mind that the purchaser is a privately held company. How long will they continue to carry a loss of $500 million a year in LTC?

you are so in the dark, i don't have time to explain it to you.

 

[Arthur Rudnick]

Previously posted by Mr_Ed

you are so in the dark, i don't have time to explain it to you.

Forget about me, you might try to explain your concept to James Riepe, non-executive chairman of the Genworth Board of Directors because he was quoted as saying:

The Board is confident that the sale of the company to China Oceanwide is the best path forward for Genworth's stockholders."

Do you honestly believe that any public company puts their customers (policyholders) first before their shareholders?

(That's a rhetorical question, I don't need an explanation thank you)

 

[goillini52]

Genworth needs Delaware regulators' blessing, analysts say | LifeHealthPro

 

[Mr_Ed]

originally posted by Mr_Ed



As far as the Chinese, keep in mind that the purchaser is a privately held company. How long will they continue to carry a loss of $500 million a year in LTC?

this is the statement that is ignorant in multiple ways.

 

[Arthur Rudnick]

originally posted by Mr_Ed

As far as the Chinese, keep in mind that the purchaser is a privately held company. How long will they continue to carry a loss of $500 million a year in LTC?

this is the statement that is ignorant in multiple ways.

The only thing ignorant is how an insurance company must continuously add hundreds of millions of dollars each year to their reserves in order to satisfy state regulators and have enough funds to pay their claims.

 

[ltcadviser]

I don't like the idea of the Chinese buying our life insurance companies.

China Oceanwide agrees to pay $2.7 billion for Genworth | LifeHealthPro

I am sure Swedes said the same thing when Volvo was bought by a Chinese company. But now they are producing great vehicles and sales are way up.

 

[Arthur Rudnick]

From LifeHealth Pro

......Also during the call, Genworth's chief financial officer, Kelly Groh, said the company is adding to the long-term care insurance claim reserves partly because a recently completed claim review turned up interesting information about how long-term care insurance policies with long durations work.

Groh said the company will be increasing long-term care insurance reserves because it now has more information about how long-term care insurance policies designed to reimburse policyholders for actual long-term care expenses really work.

Originally, Genworth's long-term care insurance units, like many other longtime issuers of stand-alone long-term care insurance products, focused on selling indemnity long-term care insurance policies. The indemnity long-term care insurance policies paid the holders who needed long-term care services a fixed amount of cash per month.

In the past, most of the information Genworth had about the performance of long-term care insurance claims had to do with indemnity long-term care insurance claims. Even in 2014, the company had too little information about the performance of reimbursement-type long-term care insurance claims with durations of seven years or more to include reimbursement long-term care insurance data in claim assumption adjustments it made this year.

This year, when the company conducted a new long-term care insurance claim review, information about long reimbursement long-term care insurance claims was still sparse, but the company had enough to use estimates to fine-tune reimbursement long-term care insurance claim assumptions, Groh said

So..............................
Let's see what we have here:
After being in the LTC business for over 40 years, Genworth has now just learned that for all of those years they were anticipating the claims and reserves based on an indemnity basis. They claim that they just didn't have enough information about claims on a reimbursement basis. Even through 2014.

As far as I know, Genworth has always been a reimbursement company. But if they did offer indemnity policies it was most likely prior to 1995 and probably totals less than 5% of their total business.

I read this over 3 times trying to find a reason to give Genworth the benefit of a doubt. Couldn't find one.

Absolutely unbelievable.
You just can't make this stuff up.

 

[goillini52]

I am sure Swedes said the same thing when Volvo was bought by a Chinese company. But now they are producing great vehicles and sales are way up.

Are you saying they didn't already have a great car?

The Volvo with a world-record 3 million miles | New York Post

That's a beauty!

 

[DHK]

CPLTC Partner Contact Info

Of these companies listed, only John Hancock is really left as a viable LTC policy for brokers to sell.

Bankers... no thanks.
Genworth... no thanks.
New York Life... left the market.
CalPERS... is only available to state employees.

The ones below that... also left the marketplace.

The CA Partnership for LTC has imploded.

----------

Are you saying they didn't already have a great car?

The Volvo with a world-record 3 million miles | New York Post

That's a beauty!

Well... that's one.

But I think the owner had more to do with it than Volvo did.