Lively sales of term life insurance and fixed annuities helped Genworth Financial Inc. overcome weak benefits sales during the second quarter.[@@]
Genworth, Richmond, Va., is reporting $285 million in net income for the latest quarter on $2.6 billion in revenue, compared with $268 million in net income on $2.9 billion in revenue for the second quarter of 2004.
Genworth, a company that separated from General Electric Company, Fairfield, Conn., through a public stock offering in May 2004, says its “pro forma” revenue for the second quarter of 2004 was $2.6 billion.
Term life sales rose 48% during the latest quarter and fixed annuity sales doubled, but long term care insurance sales rose only 2%, and group benefits sales fell 5%.
Expanded bank distribution improved fixed annuity sales, Genworth says.
Andrew Kligerman, an analyst at UBS Securities L.L.C., New York, is attributing the sluggish LTC growth rate to rate increases and overall industry weakness.