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Stock Market & Financial Investment News

News Breaks
July 31, 2014
19:35 EDTGNWGenworth provides additional disclosure on long term care insurance
Genworth Financial announced on July 29 that it is conducting a comprehensive review of its long term care insurance claim reserves. Many of the company's investors have asked for additional information about the last in-depth review of the claims reserve, which was conducted in 2012. The company cannot predict how the results of the current review will compare with the results of its review in 2012. As a result of the 2012 claims review, the company established refinements to its claim reserves to reflect how a claim transitions by diagnosis and care facility, trends in benefit utilization, and refinements to claim terminations. The impact to GAAP claim reserves as a result of the new methodology was an increase to reserves of approximately $166M as of September 30, 2012. Separately, the company also made changes to claim reserves to appropriately reflect waiver of premium benefit, shared policies where both lives are on claim, reinsurance on incurred but not reported claims, and the valuation interest rate. The impact to GAAP claim reserves as a result of these changes was a decrease to reserves of approximately $165M as of September 30, 2012. The net impact to GAAP claim reserves as a result of the 2012 claims review was a net increase to reserves of approximately $1M as of September 30, 2012. The primary areas of focus in the current review are an analysis of potential causes of the meaningful increases in adverse claims experience in Q2 and an assessment of the assumptions and methodology underlying the associated reserves, including morbidity, mortality, interest rates and claim terminations. The company intends to complete this review before the release of financial results for Q3. The company continues to believe that the existing assumptions and methodology provide the most reliable best estimate. However, given the review underway that will consider both long-term and recent experience, the company will likely change some of its assumptions, which could increase our long term care insurance claim reserves, and any increase may or may not be material.
News For GNW From The Last 14 Days
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April 20, 2015
10:02 EDTGNWPRA Group names Deborah Cassidy as Chief Information Officer
PRA Group (PRAA) announced the appointment of Deborah G. Cassidy as a new member of PRA Group's executive management team. Cassidy will serve as chief information officer for the company. Most recently, Cassidy was senior vice president and business chief information officer for Genworth Financial (GNW).
April 17, 2015
18:03 EDTGNWGenworth says needs additional $500M-$700M to comply with PMIERs
Genworth Financial responded to the final Private Mortgage Insurer Eligibility Requirements, which were published by the Government Sponsored Enterprises, Fannie Mae and Freddie Mac, in conjunction with the Federal Housing Finance Agency. PMIERs will be used by the GSEs to approve private mortgage insurers that provide mortgage insurance on loans acquired by them. Based on its interpretation of the final PMIERs, the company still estimates $500M-$700M of additional capital will be required to be fully compliant by the effective date. This estimate is based on a number of factors including the company's view of market size and dynamics, planned internal restructuring within U.S. Mortgage Insurance and current affiliate asset valuation. The estimate does not reflect the announcement of changes to GSE fees, the impact of which the company is still evaluating. The final PMIERs lowered the level of required capital from that contained in the draft requirements, primarily benefiting legacy books of business, and also lowering the benefit from captive reinsurance treaties. Additionally, this estimate reflects reductions in affiliate asset valuation due to changes in market value, currency fluctuations and the finalization of the PMIERs. The company still intends to comply with the final PMIERs by the effective date, which is now December 31, 2015. Although the company continues to pursue reinsurance transactions, the lower capital requirements on legacy books of business impact the evaluation of the mix of appropriate sources of capital, which include both reinsurance and holding company cash. As previously disclosed, the company is reviewing a broad range of strategic options that it believes will improve its ability to reduce debt levels, increase capital buffers and improve/grow earnings.
April 15, 2015
10:36 EDTGNWBofA/Merrill U.S. credit analysts hold an analyst/industry conference call
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April 12, 2015
14:23 EDTGNWPE firm JC Flowers said to eye Genworth division, Sky News says
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