The LTC insurance business was never for sale, and I see this as good news for policyholders as Genworth refocuses on its core business strengths. Even though the market knocked Genworth down after the announcement, remember that there is a difference between being a sharholder and a policyholder. Short-term changes like these in the stock price are often at the cost to shareholders, but are a benefit to policyholders.
From an article today in the Richmond Times Dispatch:
“Genworth Financial Inc. confirmed Wednesday that it reduced about 220 positions in the first six months of this year as the [Virginia-based] insurer looks to cut costs... And Genworth executives told analysts that the company is no longer looking at selling its life and annuity insurance businesses..."
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