GENWORTH, THE END?

[scagnt83]

This was once A+ rated carrier with a great reputation. Then POOF.

Perhaps the worst "bet" in the history of the insurance industry. They went all in on LTCI and priced it to be the most aggressive to win the most business.

Modern medicine combined with many other societal factors increasing longevity, totally destroyed their actuarial assumptions.

They could have gone all in on life insurance and they would still be A+ rated today. But they went all in on an untested product with a short claims history and did not hedge accordingly with other product lines.

Management should have been booted a decade ago.

 

[somarco]

I never got into the LTC side of things, but did use them in the medical stop loss biz in the early 90's. Portfolio issues (real estate as I recall) got them in trouble long before LTC did them in.

 

[Northeast Agent]

Genworth Might Resume Long-Term Care Insurance Sales by July | ThinkAdvisor

• The effects of the COVID-19 pandemic continue to help stand-alone LTCI operating earnings.
• Genworth is starting by working to increase long-term care support services sales.
• The company would issue new, relatively low-risk LTCI products with help from a reinsurance partner.

 

[Allen Trent]

Genworth Might Resume Long-Term Care Insurance Sales by July | ThinkAdvisor

• The effects of the COVID-19 pandemic continue to help stand-alone LTCI operating earnings.
• Genworth is starting by working to increase long-term care support services sales.
• The company would issue new, relatively low-risk LTCI products with help from a reinsurance partner.

So, all the Covid deaths are helping to change the projections of existing insureds using policies they have or those already on claim will no longer be on claim?

I am not normally a conspiracy person, but didn't a Chinese company buy GE LTC holdings. And didn't earlier said Covid virus, that is helping GE balance sheet, also originate in China............

 

[yankee466]

So, all the Covid deaths are helping to change the projections of existing insureds using policies they have or those already on claim will no longer be on claim?

I am not normally a conspiracy person, but didn't a Chinese company buy GE LTC holdings. And didn't earlier said Covid virus, that is helping GE balance sheet, also originate I'm China............

LOL...the China Worldwide deal fell through....so they launched the virus for nothing!!! :-)

 

[goillini52]

Perhaps the worst "bet" in the history of the insurance industry. They went all in on LTCI and priced it to be the most aggressive to win the most business.

Modern medicine combined with many other societal factors increasing longevity, totally destroyed their actuarial assumptions.

They could have gone all in on life insurance and they would still be A+ rated today. But they went all in on an untested product with a short claims history and did not hedge accordingly with other product lines.

Management should have been booted a decade ago.

Aetna's doing very well with the Med Supp/Ancillary business they bought from Genworth, so they screwed themselves if that field too,

 

[WinoBlues]

Perhaps the worst "bet" in the history of the insurance industry. They went all in on LTCI and priced it to be the most aggressive to win the most business.

Modern medicine combined with many other societal factors increasing longevity, totally destroyed their actuarial assumptions.

They could have gone all in on life insurance and they would still be A+ rated today. But they went all in on an untested product with a short claims history and did not hedge accordingly with other product lines.

Management should have been booted a decade ago.

Age old Morbidity v Mortality fight rages on. Mortality still wins in the end, however, we have added more rounds to the fight.

Oh, and those late rounds can be ugly.

 

[Life Hawk]

so they launched the virus for nothing!!! :-)

I think the backup plan was to sale face masks. Sometimes you have to work your market and some times you have to create a market.

Sorta like care insurance.

 

[goillini52]

some times you have to create a market.

Like the Cancer industry.