Arthur Rudnick
Guru
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Re: Genworth Update
By Zachary Tracer Dec 17, 2014 5:05 PM ET
Genworth Financial Inc. (GNW) said it will take until next year to release the results of its latest review into whether it has adequate reserves for long-term care insurance. The stock declined in extended trading.
"While our original intent was to communicate results in December, the review is taking longer than previously anticipated," Tom McInerney, chief executive officer of the Richmond, Virginia-based insurer, said today in a statement.
McInerney is under pressure to provide clarity on costs after announcing a record quarterly loss on Nov. 5 tied to a review of long-term care claims that found a $531 million reserve shortfall. The next day, the stock fell 38 percent, and Genworth said the results of another review would be available in December.
The insurer said today that it will receive a review from a third party and announce results on or before the date when it posts fourth-quarter earnings. The company dropped 5.9 percent to $7.46 at 4:59 p.m. in New York. The delay was announced after the close of regular trading.
Genworth is the largest U.S. seller of long-term care policies, which help pay for nursing home stays and home health aides. McInerney has said he's committed to the business even after larger rivals MetLife Inc. and Prudential Financial Inc. discontinued selling new policies, citing narrower margins due to rising costs and lower bond yields.
Genworth Delays Result of Reserves Review After Shortfall
By Zachary Tracer Dec 17, 2014 5:05 PM ET
Genworth Financial Inc. (GNW) said it will take until next year to release the results of its latest review into whether it has adequate reserves for long-term care insurance. The stock declined in extended trading.
"While our original intent was to communicate results in December, the review is taking longer than previously anticipated," Tom McInerney, chief executive officer of the Richmond, Virginia-based insurer, said today in a statement.
McInerney is under pressure to provide clarity on costs after announcing a record quarterly loss on Nov. 5 tied to a review of long-term care claims that found a $531 million reserve shortfall. The next day, the stock fell 38 percent, and Genworth said the results of another review would be available in December.
The insurer said today that it will receive a review from a third party and announce results on or before the date when it posts fourth-quarter earnings. The company dropped 5.9 percent to $7.46 at 4:59 p.m. in New York. The delay was announced after the close of regular trading.
Genworth is the largest U.S. seller of long-term care policies, which help pay for nursing home stays and home health aides. McInerney has said he's committed to the business even after larger rivals MetLife Inc. and Prudential Financial Inc. discontinued selling new policies, citing narrower margins due to rising costs and lower bond yields.
