Genworth Financial Inc. says the capital level at its Genworth Life Insurance Company of New York (GLICNY) unit may have fallen between the end of 2016 and the end of 2017.
GLICNY has written life insurance, annuities and stand-alone long-term care insurance (LTCI) in New York state.
Genworth estimates that GLICNY ended 2017 with about 280% to 290% of the amount of risk-based capital needed to be above insurance regulators’ company action level, the company said Wednesday in an announcement.
A copy of the announcement is available here.
GLICNY ended 2016 with a 438% company-action-level risk-based capital ratio, according to a similar announcement Genworth posted a year ago. A copy of that announcement is available here.
(Related: Genworth Asks to Change Terms of Notes)
Genworth says it tested the cash flow at the GLICNY unit and found that the unit now has a total “negative margin,” or gap between actual performance and expected performance, of about $400 million, after accounting for reserves Genworth set aside in case the unit performed worse than expected.
For 2016, the unit had a total negative margin of about $110 million.
Genworth did not add any cash to GLICNY reserves for 2016.