Long term care insurance may be starting to stage a comeback at Genworth Financial Inc.
Genworth, Richmond, Va., is reporting $1.2 billion in net income for the fourth quarter of 2005 on $10.5 billion in revenue, compared with $1.2 billion in net income on $10 billion in pro forma revenue for the fourth quarter of 2004.
Weak investment returns and low policy terminations on older blocks caused LTC insurance profits to fall to $43 million, from $46 million, but increased coverage elections by members of group LTC plans helped boost LTC sales to $46 million, from $41 million.
Although LTC insurance sales growth may be modest this year, market sentiment seems to be shifting in its favor, and a new federal law that will expand the state LTC partnership program could help in 2007, according to analysts at Fox-Pitt, Kelton, New York.
In other earnings news: