Genworth Reports Softness In The LTC Market
Genworth Financial Inc. has put long term care insurance on its list of products that are lagging behind expectations.
General Electric Company, Fairfield, Conn., spun off the Richmond, Va., financial services giant as a stand-alone company with a May stock offering.
Genworth argues that comparing its latest results with past results is tricky because of the many underwriting costs, accounting changes, business changes, and other changes and expenses resulting from the spin-off. The company prefers to talk about its pro forma net operating earnings, which attempt to iron out the distortions. The companys pro forma net operating earnings increased to $279 million for the second quarter on $2.9 billion in revenue from $256 million on $2.9 billion in revenue for the second quarter of 2003.
Genworth reported $268 million in net income for the latest quarter, compared with $364 million in net income for the comparable quarter in 2003.
Sales and operating profits for most products were strong, and the launch of a successful new fixed annuity product in the first quarter helped increase annualized “spread retail” product sales 71%, to $728 million.