Rating agencies react to Genworth reserve announcement
November 7, 2014 by Allison Bell
The companies that grade insurers’ financial strength reacted quickly to news that Genworth Financial Inc. (NYSE:GNW) is increasing long-term care insurance (LTCI) claim reserves and reducing the state value of its life and LTCI businesses.
Standard & Poor’s Ratings Services lowered the long-term counterparty credit and senior unsecured debt ratings it assigns the parent company to BB plus, from BBB minus. The rating agency also lowered its financial strength ratings on Genworth’s Life Insurance Company, Genworth Life and Annuity Insurance Company, and Genworth Life Insurance Company of New York units to BBB plus, from A minus. The outlook on the ratings is negative. Click here to read…