Genworth Financial says its long-term care insurance unit earned more in the second quarter of this year than in the second quarter of 2015.
The Richmond, Virginia-based insurer reported a total of $220 million in net income for the quarter on $2.2 billion in revenue, compared with a $193 million net loss on $2.2 billion in revenue for the year-earlier quarter.
Income from all continuing operations increased to $351 million, from $245 million.
The long-term care insurance unit generated $37 million in net operating income on $1.1 billion in revenue, up from $10 million in net operating income on $915 million in revenue.
Sales of individual long-term care insurance fell to $4 million, from $8 million in the second quarter of 2015.
Sales of group long-term care insurance increased to $2 million, from $1 million.
Genworth is working to “separate and isolate” its long-term care insurance business from the rest of the company. The company wants to use about $175 million from its U.S. life companies to carry out that strategy. Using cash for that purpose “is subject to ongoing regulatory discussions and approvals,” the company says.
Like many other long-term care insurance issuers, Genworth has been increasing LTCI premiums. Some policyholders have simply agreed to pay higher premiums, but enough have accepted lower benefits levels or let policies lapse to let Genworth release $26 million in reserves, the company says.
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