Genworth Financial Inc. increased long-term care insurance sales in the third quarter in spite of the effects of price increases and tougher underwriting sales.
Genworth, Richmond, Va. (NYSE:GNW), sales individual LTCI sales rose to $54 million in the latest quarter, from $38 million in the third quarter of 2010.
Michael Fraizer, the president of Genworth, said during the company’s earnings call that the performance of the LTCI line has been mixed.
But “the new block is performing well,” Fraizer said.
The Genworth LTCI business is reporting $49 million in net income for the latest quarter on $891 million in revenue, up from $40 million in net income on $819 million in revenue for the third quarter of 2010.
Net operating income, which includes net investment gains and losses, fell to $31 million, from $44 million.
LTCI revenue for the latest quarter includes $602 million in premium revenue and $246 million in net investment income. The company spent $663 million on benefits and changes in policy reserves.
In the third quarter of 2010, LTCI revenue included $577 million in premiums and $232 million in net investment income. The company spent $602 million on benefits and policy reserve changes.
Sales by dedicated sales specialists increased to $14 million, from $12 million.