Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Long-Term Care Planning

Genworth posts $63 million net loss

Your article was successfully shared with the contacts you provided.

Genworth Financial Inc. reported a significant loss for the fourth quarter of 2016, and a drop in long-term care insurance activity.

The Richmond, Virginia-based company is reporting a net loss of $63 million for the latest quarter on $2.2 billion in revenue, compared with a net loss of $240 million on $2.2 billion in revenue for the fourth quarter of 2015.

The loss from continuing operations before income taxes narrowed to $56 million, from $2.4 billion.

Related: Genworth’s would-be buyer helped build modern China

Sales of new individual long-term care insurance fell to $1 million, from $8 million, and sales of new group LTCI coverage fell to $1 million, from $8 million.

The LTCI unit is reporting a $15 million loss from continuing operations on $986 million in revenue, compared with $32 million in income from continuing operations on $983 million in revenue for the fourth quarter of 2015.

LTCI premium revenue increased to $650 million, from $633 million.

Most of the net loss for the quarter was related to changes in universal life insurance assumptions, Genworth said.

Beijing-based China Oceanwide Holdings Group Co. Ltd. announced plans in October to pay $2.7 billion for Genworth.

Genworth expects to have shareholders vote on the deal March 7.

Some speculators have questioned whether China Oceanwide will really complete the deal.

Tom McInerney, Genworth’s president, said in a statement included in the earnings announcement that the Genworth board believes the deal is in the best interest of stockholders and unanimously recommends approval of the transaction.

The earnings announcement also included a statement from Lu Zhiqiang, the chairman of China Oceanwide.

“China Oceanwide is continuing to work diligently with Genworth to obtain all regulatory approvals and satisfy other necessary conditions to closing,” Lu said in the statement.

In the past, Genworth has held conference calls with securities analysts to discuss its earnings. The company said it does not plan to continue to host earnings calls while the China Oceanwide deal is pending.


Genworth reaffirms commitment to long-term care insurance

Genworth says higher LTCI rates beat liquidation

We’re on Facebook, are you?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.