Genworth Suspension Notice for MA & NH

A

aclaro

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MA
Just announced today...thoughts?

Okay, so I can't post a url since I haven't earned that right yet...

"Genworth announced the suspension of sales of individual long term care
insurance products in Massachusetts and New Hampshire effective November 6,
2014, with a last home office receipt date of December 6, 2014. Full transition
rules are listed below."

images.solutions.genworth.com/Web/GenworthNorthAmericaCorp/%7B8ff36596-de38-464f-8b6c-e443237124c2%7D_162111_110514_gnw.pdf?elq_mid=5364&elq_cid=406106
 
originally posted by aclaro


Just announced today...thoughts?
"Genworth announced the suspension of sales of individual long term care
insurance products in Massachusetts and New Hampshire effective November 6,
2014, with a last home office receipt date of December 6, 2014.
Click to expand...

According to Genworth's CEO, product was pulled because neither state approved Genworth's rate increases on existing policyholders.
Vermont is next up.

----------

Analysts view Genworth’s long-term care business as worthless
NOV 10, 2014 | BY ZACHARY TRACER

(Bloomberg) -- Genworth Financial Inc. is the largest U.S. seller of long-term care insurance, a position that Chief Executive Officer Tom McInerney is counting on to turn the company around after a record loss.
Yet that business is worthless, according to analysts at Macquarie Group Ltd. and Keefe, Bruyette and Woods.
“We do not think long-term care is a good business,” Sean Dargan, an analyst at Macquarie, wrote in a research note today. “Our preference would be for Genworth to put LTC into runoff in a closed block.”
Genworth posted a third-quarter loss of $844 million on Nov. 5, fueled by costs to set aside more funds for long-term care policies. To revive the business, McInerney has been raising premiums on policies sold in the past, while increasing costs and cutting benefits for new coverage.

The company says it has solid capital positions, strong liquidity, and plans for increasing earnings.
While that may improve results, it’s also weighing on sales of the policies, which help pay for nursing home stays and home health aides. Ryan Krueger, the KBW analyst, estimated the value of the long-term care operation at negative $750 million. The figure no longer assigns any value to fresh sales, he wrote in a research note dated Nov. 9.
“Our thesis that long-term LTC risks wouldn’t play out that badly near-term was wrong, and now we don’t feel comfortable recommending Genworth” as the company conducts another review of reserves, Krueger wrote. He cut his price target to $10.50 from $16 and lowered his rating on the stock to market perform.

Genworth slipped 0.7 percent to $8.35 at 10:30 a.m. in New York. The stock tumbled 40 percent last week after the loss was announced.
After the third-quarter loss, Genworth is conducting another review of its long-term care business and plans to announce preliminary results next month.
Fitch Ratings said last week that it expects Genworth to record pretax charges of $500 million to $1 billion in the fourth quarter, and Standard & Poor’s cut Genworth’s credit grade to junk, citing diminished capital strength and the prospect of the need to set aside more funds.
The actions by ratings firms could limit sales of some products and increase the cost of taking on additional debt, Genworth said today in a regulatory filing.

Genworth has several ways to bolster the affected units before issuing equity or debt, the analysts said. The company has proceeds from the partial sale of an Australian unit this year, and could sell more of that unit or a Canadian business. Genworth also could divest its international protection operation or use reinsurance.
Turning to markets to raise capital is “certainly not something we anticipate doing at this time,” Chief Financial Officer Martin Klein said on a Nov. 6 conference call with analysts. “It’s certainly something we don’t want to do. But we’ll watch and if circumstances change. We’ll certainly have to consider everything involved.”
Even with a long-term care business that has no value, Genworth’s other businesses are worth more than the current share price, Dargan said. He cut his price target to $12 from $16 and has an outperform rating.
“With management credibility compromised and another unknown coming next month with the results of Genworth’s long- term care active life reserve review, the market has punished Genworth shares,” Dargan wrote. “For value-oriented new money, we think this offers an attractive entry point.”
 
Arthur Rudnick said:
originally posted by aclaro




According to Genworth's CEO, product was pulled because neither state approved Genworth's rate increases on existing policyholders.
Vermont is next up.

----------

Analysts view Genworth’s long-term care business as worthless
NOV 10, 2014 | BY ZACHARY TRACER

(Bloomberg) -- Genworth Financial Inc. is the largest U.S. seller of long-term care insurance, a position that Chief Executive Officer Tom McInerney is counting on to turn the company around after a record loss.
Yet that business is worthless, according to analysts at Macquarie Group Ltd. and Keefe, Bruyette and Woods.
“We do not think long-term care is a good business,” Sean Dargan, an analyst at Macquarie, wrote in a research note today. “Our preference would be for Genworth to put LTC into runoff in a closed block.”
Genworth posted a third-quarter loss of $844 million on Nov. 5, fueled by costs to set aside more funds for long-term care policies. To revive the business, McInerney has been raising premiums on policies sold in the past, while increasing costs and cutting benefits for new coverage.

The company says it has solid capital positions, strong liquidity, and plans for increasing earnings.
While that may improve results, it’s also weighing on sales of the policies, which help pay for nursing home stays and home health aides. Ryan Krueger, the KBW analyst, estimated the value of the long-term care operation at negative $750 million. The figure no longer assigns any value to fresh sales, he wrote in a research note dated Nov. 9.
“Our thesis that long-term LTC risks wouldn’t play out that badly near-term was wrong, and now we don’t feel comfortable recommending Genworth” as the company conducts another review of reserves, Krueger wrote. He cut his price target to $10.50 from $16 and lowered his rating on the stock to market perform.

Genworth slipped 0.7 percent to $8.35 at 10:30 a.m. in New York. The stock tumbled 40 percent last week after the loss was announced.
After the third-quarter loss, Genworth is conducting another review of its long-term care business and plans to announce preliminary results next month.
Fitch Ratings said last week that it expects Genworth to record pretax charges of $500 million to $1 billion in the fourth quarter, and Standard & Poor’s cut Genworth’s credit grade to junk, citing diminished capital strength and the prospect of the need to set aside more funds.
The actions by ratings firms could limit sales of some products and increase the cost of taking on additional debt, Genworth said today in a regulatory filing.

Genworth has several ways to bolster the affected units before issuing equity or debt, the analysts said. The company has proceeds from the partial sale of an Australian unit this year, and could sell more of that unit or a Canadian business. Genworth also could divest its international protection operation or use reinsurance.
Turning to markets to raise capital is “certainly not something we anticipate doing at this time,” Chief Financial Officer Martin Klein said on a Nov. 6 conference call with analysts. “It’s certainly something we don’t want to do. But we’ll watch and if circumstances change. We’ll certainly have to consider everything involved.”
Even with a long-term care business that has no value, Genworth’s other businesses are worth more than the current share price, Dargan said. He cut his price target to $12 from $16 and has an outperform rating.
“With management credibility compromised and another unknown coming next month with the results of Genworth’s long- term care active life reserve review, the market has punished Genworth shares,” Dargan wrote. “For value-oriented new money, we think this offers an attractive entry point.”
Click to expand...


how many years has it been since you sold a policy?
 
Arthur Rudnick said:
originally posted by Mr_Ed



Why is that a concern to you?

I didn't write the report on Genworth, Bloomberg News did.

I can't wait to hear you put a positive spin on it.

:laugh:
Click to expand...


Was the purpose of this analysis to determine if someone should buy stock in Genworth or was the purpose of this analysis to determine if someone can benefit from owning a Genworth LTCi policy?
 
originally posted by Mr_Ed

Was the purpose of this analysis to determine if someone should buy stock in Genworth or was the purpose of this analysis to determine if someone can benefit from owning a Genworth LTCi policy?
Click to expand...


I have no idea, why not ask Zachary Tracer from Bloomberg News who wrote the article?
 
Exxon loses $47 Billion in market value in the past 5 months, due to plunging crude oil prices.

Financial experts say, "It's clear the oil business is too risky. A 30% drop in prices in only 5 months can't be safe. For the sake of its stockholders, Exxon must leave the oil business soon."

Due to the decrease in oil, and their $47 Billion loss in market capitalization, Exxon is no longer the world's 2nd largest company. It has lost that place to Microsoft.

Some company insiders, speaking on condition of anonymity, suggested that Exxon follow Microsoft's lead and get into the software business. They stated, "At this pace of decline, crude prices will be less than a dollar per barrel by this time next year and Exxon will be forced out of the oil business anyway. Why not just get out of the oil business right now and switch to the much safer, more predictable software business."

“Nothing stays the same forever, and the stronger dollar with weaker oil prices has been the catalyst for this,” Quincy Krosby, a market strategist at Prudential Financial Inc. in Newark, New Jersey, said by phone.

The entire story can be read here:

Microsoft Tops Exxon as 2nd Biggest Company on Oil Drop - Bloomberg


:biggrin:
 
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