Genworth Financial Inc. (NYSE:GNW) said it will stop selling AARP-branded long-term care insurance (LTCI) June 1.
Genworth, a major writer of LTCI coverage, has been writing the AARP-branded products through its Genworth Life Insurance Company and Genworth Life Insurance Company of New York units since 2007.
Existing AARP LTCI coverage will not be affected by the change, the company said.
AARP is a nonprofit group for people ages 50 and older. It has 37 million members.
Jeff Davis, an AARP representative, said that Genworth is still offering caregiver support services through AARP, and that AARP has been working with Genworth to develop a new long-term care program.
Although the Genworth suspension of AARP-branded LTCI sales ends the exclusive branding arrangement Genworth has had with AARP, AARP is not actively seeking another LTCI provider, Davis said.
AARP would be open to talking to other insurers, Davis said.
“We’re committed to education on long-term care and what is best for 50-plus consumers and our members,” Davis said.
Genworth announced the AARP move around the same time the company was holding a conference call with securities analysts to discuss first-quarter earnings.
Genworth is reporting a total of $141 million in net income for the first quarter on $2.3 billion in revenue, compared with $46 million in net income on $2.3 billion in revenue for the first quarter of 2012.
The LTCI unit, a part of Genworth’s U.S. life insurance division, is reporting $20 million in net operating income for the latest quarter on $775 million in revenue, compared with $35 million in net operating income on $775 million in revenue for the first quarter of 2012, according to a financial supplement.
Premium revenue fell to $513 million, from $521 million, and net investment gains increased to $264 million, from $255 million.
Group LTCI sales increased to $5 million, from $3 million. Individual sales fell to $35 million, from $45 million, in part because, in the year-ago quarter, consumers flocked to buy coverage before pending price increases took effect, the company said.