Genworth Financial Inc. cited “adverse long-term care insurance claims experience” as a challenge for the company at the top of its second-quarter earnings release.
Genworth (NYSE:GNW) as a whole is reporting $228 million in net income for the quarter on $2.4 billion in revenue, compared with $174 million in net income on $2.4 billion in revenue for the comparable quarter in 2013.
The global mortgage insurance business increased its net operating income to $136 million, from $102 million in the second quarter of 2013, but the U.S. life division as a whole earned $69 million, down from $79 million. At the U.S. life division, operating profits were higher for life insurance and down a little for fixed annuities.
The long-term care insurance (LTCI) business reported $6 million in net operating income on $872 million in total revenues, compared with $26 million in net operating income on $826 million in total revenues for the second quarter of 2013. Premiums increased to $577 million, from $550 million, and net investment income increased to $292 million, from $277 million. Benefits and other changes in policy reserves increased to $735 million, from $663 million.
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The company recorded $26 million in LTCI sales. That was down from $43 million in the second quarter of 2013 but up from $22 million in the first quarter.