(Bloomberg) — Genworth Financial Inc., the insurer battered by losses on long-term care policies, promoted Kevin Schneider to chief operating officer as the company seeks to reverse a stock slide that led to its removal from the Standard & Poor’s 500 Index.
Schneider, 53, the executive vice president of global mortgage insurance, will report to Chief Executive Officer Tom McInerney in the new role while maintaining oversight of the business that backs home loans, Richmond, Virginia-based Genworth said Wednesday in a statement.
McInerney has been seeking to stabilize operations after the insurer was burned by losses on its long-term care business, which pays for home-health aides and nursing home stays. The company has divested some European units and blocks of life policies, after suspending an initial plan to sell off an entire life-and-annuity operation.
“I am pleased he now will expand his influence as he assumes the responsibility for the U.S. life insurance businesses, in addition to his existing oversight of the mortgage insurance businesses,” McInerney said in the statement. “This appointment will enable me to focus on driving Genworth’s overall strategy, including the continued pursuit of our strategic priorities.”
Schneider is taking on a more prominent role after the departure of Martin Klein, who resigned in October as chief financial officer to take the same post at Athene Holding Ltd., the annuity provider with ties to Apollo Global Management LLC. McInerney promoted Kelly Groh, the company’s controller and principal accounting officer, to CFO.
Genworth said in an October regulatory filing that its board had approved cash retention awards of $2 million to Schneider and Chief Investment Officer Daniel Sheehan after the departure of Klein.
The insurer’s share price has plunged 55 percent this year through Tuesday after dropping 45 percent in 2014.