Genworth Financial Inc. needs to improve the way it manages its long-term care insurance (LTCI) business, according to Thomas McInerney, the company’s president.
“We’re conducting an intense, very broad and deep review of all aspects of our [long-term care] insurance business,” McInerney said during the company’s second-quarter earnings call.
Genworth executives continue to believe that there is an important role for private insurance in the long-term care (LTC) market, McInerney said.
But company executives believe the company has to increase the price of products sold before 2002 to bring them closer to the break-even point; ask for smaller, relatively frequent increases on newer blocks of business; and introduce new products that are designed, underwritten and priced more carefully, McInerney said.
Genworth as a whole is reporting $180 million in net income for the second quarter on $2.4 billion in revenue, up from $109 million in net income for the second quarter of 2012.
LTCI net operating income increased to $26 million, from $14 million.
Individual LTCI sales fell to $38 million, from $53 million, and group sales fell to $5 million, from $7 million.
Results for the quarter included $8 million in extra revenue resulting from LTCI price increases, the company said.