Genworth Declines as Long-Term Care Insurance FaltersZachary Tracer
Genworth Financial Inc. fell the most in a month as Chief Executive Officer Tom McInerney said he was disappointed by lower profit from long-term care coverage.
Genworth dropped 3.2 percent to $8.88 at 9:53 a.m. in New York. The shares have advanced about 18 percent this year.
Profit at the long-term care business slid to $7 million in the fourth quarter from $28 million a year earlier. Long-term care policies have proven more costly than Genworth had forecast, and the company is seeking premium increases on some policies it’s sold as low interest rates weigh on results.
“McInerney and his team still have plenty of work ahead of them in terms of improving the company’s core life insurance and long-term care businesses,” Mark Palmer, an analyst at BTIG LLC., wrote in a research note.
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