Genworth sees advancements in long-term care

Calls for long-term care policies are moving faster than Genworth Financial once again thought, but the Henrico-based Fortune 500 company says it is making progress on striking the right balance in a business that has largely been abandoned.

Meanwhile Another Richmond Fortune 500 company said: The increase in cigarette prices helped offset the impact of the slowdown in cigarette sales in the convenience store segment. Meanwhile, homeowners’ warnings about home improvement projects have caused sales of Henrico flooring companies to plummet.

Genworth said claims in the July-September quarter were $110 million above expectations. As a result, this segment of the business posted an operating loss of $71 million, compared with revenue of $26 million a year ago.

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Genworth Financial Inc. is at 6620 West Broad St. in Richmond.

Daniel Sangjib Min from TIMES-DISPATCH

Like few insurance companies that still offer long-term care insurance policies that help pay for nursing home or other long-term care, which often includes home health services, Genworth has seen a surge in claims. come more often and for larger amounts than expected while the amount Policyholders let their coverage end for less than they thought.

As a result, premiums are not in line with claims on the old policy. Meanwhile, newer policies are not built up quickly enough to provide necessary reserves as policyholders age. and began making more and more demands.

To address this, Genworth and other long-term care insurance companies that is still in use It has asked state regulators to increase double-digit and triple-digit premium percentages. At the same time, policyholders are asked to consider receiving reduced benefits to control premiums.

in the third trimester This resulted in states Approvals increased by an average of 56%, Genworth said in a presentation to Wall Street analysts, up from the same period last year when regulators approved an average increase of 38%.

A growing number of policyholders have also agreed to reduce their coverage benefits: 49% have done so, Genworth told analysts.

Henrico’s Genworth sees progress in long-term care

But the long-term care business remains under stress considering those policies haven’t seen premium rates increase since 2012. Genworth’s pre-tax loss widened from $786 million a year ago to 1.03. Billion dollars in third quarter 2023

An increase in approved premium rates means more policies will be added. That generated pre-tax income in the third quarter of $674 million, up from $619 million a year ago.

Those revenues are important because claims on Genworths’ older policies, on which the average policyholder is in their 80s, continue to process at more than $900 million per quarter, according to an analysis of data the company presented to analysts. Richmond Times’ Wall Street

Claims on policies where policyholders are age 70 increased from $689 million last year to $815 million in the 2023 quarter.

Overall, with revenue from its holdings of mortgage insurance company Enact, it offset some of the impact of the loss of long-term care. Genworth’s third-quarter profit fell 79% to $29 million.

Enact revenue helps the company reduce debt, which is a key goal.

Separately, Performance Food Group, another Fortune 500 company in the area, reported that higher cigarette and food prices have led to an increase in the company’s convenience store business unit.

But the number of boxes sent to convenience stores decreased, the company said.

Performance Food Group says sales to restaurants are up. This is because they reduce the price of the food they sell.

The Goochland-based Fortune 500 company said sales in the July-September quarter, its first fiscal year, rose 1.5 percent to $14.9 billion.

Snack food operations led the way, increasing 14.7% to $1.3 billion. But falling cigarette sales caused convenience store revenue to fall 0.8% to $6.3 billion. Sales to restaurants fell 0.7% to $7.3 billion.

Net income increased 26.1% to $120.7 million.

Meanwhile High interest rates and low consumer confidence continue to pressure homeowners’ interest in home improvements, Henrico County-based LL Flooring Holdings Inc. said.

Third-quarter sales fell 19.7% to $215.8 million, while losses widened to $36 million from a loss of $3.8 million a year ago.

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