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.
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.
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