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Life Health > Life Insurance

Genworth posts first-quarter results

By Allison Bell

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Genworth Financial Inc. (NYSE:GNW) says it still wants to strengthen its long-term care insurance (LTCI) capital, earnings and sales, as well as its mortgage insurance business.

The company is reporting $204 million in net income for the quarter on $2.3 billion in revenue, compared with $219 million in net income on $2.3 billion in revenue for the fourth quarter of 2014.

Operating income at the U.S. life operations fell to $81 million, from $94 million in the year-earlier quarter.

In the fourth quarter of 2014, big increases in policy reserves led to a $506 million net operating loss at the LTCI unit. For the first quarter, the unit is reporting a $10 million operating profit, down from $46 million in the year-earlier quarter.

See also: Genworth rebounds as LTCI results better than expected

New LTCI claims were somewhat more severe than older claims, but an increase in beneficiary mortality helped results, the company says.

Net operating income rose to $40 million, from $21 million in the first quarter of 2014, at the U.S. life insurance business.

New LTCI sales fell to $11 million, from $22 million, in part because of the impact of a shift to new, higher-priced products, the company says.

New life sales fell to $17 million, from $21 million.

New fixed annuity sales fell to $326 million, from $520 million, in part because of pressure from low interest rates.

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