Comfort Long Term Care
  • TakeCare!
    • LTC Awareness
    • Hybrid LTC Insurance Info
    • Partnership LTC Insurance
    • Tax Guide
    • Claims
    • Glossary
  • LTC Rate Increases
  • News
  • About
    • Bill Comfort
    • Companies
    • Rinny
  • Contact

Genworth's Stock Decline Is Good for Policyholders

11/6/2014

0 Comments

 
Bad news for INVESTORS.  Good news for POLICYHOLDERS.
OR: Shareholders lost value.  Policyholders gained security.

Stock price (shareholder value and return) and claims paying ability (policyholder security) are two separate issues.

The reason for the downdraft in Genworth's stock price is actually a good thing for policyholders.  The company put more than a half-BILLION dollars into its policyholder reserves.  What I take from this is that instead of simply pursuing yet another round of rate increases (which take a long time), the company has taken a charge to earnings which hurts shareholders in the short run in order to keep promises to policyholders for the long run.  

There may, or may not, be additional premium increases on older policies, but this should not be read as bad news for LTC policyholders, quite the opposite in my opinion.

From the web:
  • After completing the Long Term Care Insurance comprehensive claim review, Genworth (GNW -30.3%) boosts reserves by $531M and takes an after-tax earnings charge of $345M.
  • Q3's net operating loss of $317M or $0.64 per share stands against net operating income of $139M or $0.28 per share one year ago.
  • CEO: Tom McInerney: "The turnaround in this business will be more difficult and prolonged because of the poor performance of the older generation products."​​
http://seekingalpha.com/news/2102685-genworth-plummets-after-ltc-charge
This information is not intended to be investment advice, nor a solicitation to buy or sell any particular stock or investment, but is presented as information about LTC insurance.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Scroll down
    ​for older posts

    Author

    Bill Comfort
    CSA, CLTC, LTCCP
    The LTCpro®

    Categories

    All
    Alzheimer's
    Caregiving
    Commentary
    LTC Insurance
    LTC Planning
    LTC Tax Planning
    Medicare
    News
    Rate Increases
    Video

    Archives

    November 2023
    October 2022
    December 2021
    February 2021
    December 2020
    October 2020
    August 2020
    June 2020
    May 2020
    April 2020
    March 2020
    January 2020
    November 2019
    September 2019
    May 2019
    March 2019
    February 2019
    October 2018
    August 2018
    March 2018
    January 2018
    August 2017
    July 2017
    March 2017
    February 2017
    November 2016
    October 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    January 2016
    November 2015
    October 2015
    August 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014

    RSS Feed

CLICK HERE to download the updated NAIC "Shopper’s Guide to LTC Insurance"
Comfort Long Term Care is an independent insurance brokerage agency specializing exclusively in LTC insurance. Agency owner, Bill Comfort, The LTCpro® is a LTC specialist celebrating 30+ years of experience since 1991! We are based in the Raleigh, Durham, Chapel Hill, North Carolina Triangle region, but we serve clients throughout NC and across the country. We also have an office in St. Louis, Missouri.
​Click here to learn more about us!
Picture
Picture
Picture
Picture

HOME
CONTACT

​© 2014-2025 Comfort Assurance Group, LLC.,
dba Comfort Long Term Care.  All rights reserved.
The LTCpro® is a registered trademark.
Terms of Service
Privacy Policy
Security Certification​
Notice
Licenses
CA License: 440988
The information on this website is for general informational and educational purposes only, and it is not intended to be a direct solicitation for the sale of any specific insurance company or policy form.  Not all policy types, options, or riders discussed in general terms on this site are available in every state.  Individual requests for specific company or policy information will be directed to a properly-licensed agent for the applicable state of residence.  For complete information about any specific coverage - including limitations and exclusions - refer to a company-specific illustration and Outline of Coverage.
  • TakeCare!
    • LTC Awareness
    • Hybrid LTC Insurance Info
    • Partnership LTC Insurance
    • Tax Guide
    • Claims
    • Glossary
  • LTC Rate Increases
  • News
  • About
    • Bill Comfort
    • Companies
    • Rinny
  • Contact