A message from Deb Newman:
As a valued distribution partner, we wanted to communicate with you about some recent changes to Genworth Financial’s ratings as a result of last week’s earnings call. As you may have heard, they have received downgrades from A.M. Best, Moody’s and S&P in recent days. We wanted to provide you with some insights and talking points.
First and foremost, ratings don’t impact a company’s ability to pay claims. Genworth currently pays over $5.8 million in LTCI benefits every single day. They have paid over $12.6 billion since they began selling LTCI in 1974.
Other things to note about Genworth’s financial position:
- There is $1.4 billion in the holding company with another $200 million coming into the holding company in July
- Their Risk Based Capital (RBC) is 430
- They have over $26.5 billion in reserves set aside for LTCI claims
- The LTCI unit generated $19 million in operating income last quarter on $633 in premium revenue
Genworth has released some communications for policyholders that can be shared:
Genworth has also just released a detailed Frequently Asked Questions piece for distribution partners and producers that goes into more detail on the changes happening within Genworth to move forward in the Mortgage Insurance and Long Term Care Insurance lines. This communication answers questions about new business deadlines, compensation and pending business.
While I still have confidence in Genworth as a long term care insurance carrier I realize many of you are limited by a company’s ratings either because of your Broker/Dealer or your E & O insurance. We still have tremendous choices in traditional long term care insurance with Mutual of Omaha, Thrivent, Transamerica, and John Hancock as well as a full platform of Linked Benefit and LTCI riders on life products.
Sincerely,
Deb Newman
President
Newman Long Term Care