Genworth Says It Needs $6 Billion in Additional LTCI Rate Hikes
May 7, 2019 by Allison Bell
Executives from Genworth Financial Inc. said Wednesday that the company’s Genworth Life Insurance Company (GLIC) unit could see its solvency level deteriorate if state insurance regulators fail to approve $6 billion in additional long-term care insurance (LTCI) rate increases.
Kelly Groh, the Richmond, Virginia-based insurer’s chief financial officer, talked about GLIC’s risk-based capital (RBC) ratio and overall capital levels during a conference call the company held to go over first-quarter earnings with securities analysts.
The company reported that its long-struggling LTCI unit generated $42 million in net income for the quarter on $1.1 billion in revenue, compared with a $27 million net loss on $1 billion in revenue for the year-earlier quarter.
The LTCI unit did a little better than GLIC’s closed blocks of life and annuity business.
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