Majority of long term care insurance policyholders not affected
RICHMOND, Va., October 21, 2010 ― Genworth Financial, Inc. (NYSE: GNW) announces two of its life insurance subsidiaries, Genworth Life and Genworth Life of New York, will be seeking an 18 percent rate increase on two older blocks of comprehensive long term care insurance. The primary driver of this premium increase is “persistency,” or the number of people who will retain, rather than lapse, their policies over time – leading to higher claims than pricing assumed for these older policies.
The majority of Genworth long term care insurance policyholders will not be affected by this premium increase. For those who are affected, Genworth will offer several options to help them keep their coverage, including:
· accepting the premium increase;
· reducing or changing the daily benefit amount, policy duration, inflation protection or elimination periods to maintain or reduce the policy premium; and
· choosing a limited non-forfeiture option which provides a limited paid-up policy with benefits equal to the total amount of premiums paid less any claims paid.
“These very targeted actions help responsibly position our business to meet policyholders’ anticipated future needs,” said Buck Stinson, president of U.S. insurance products for Genworth Financial. “We are committed to this industry for the long term and are dedicated to maintaining the strength of our long term care insurance products for the future.”
Genworth plans to begin filing for the rate changes in early November and anticipates the earliest an increase will take effect is January 2011. The implementation will take place over the next two to three years.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 global financial security company. Genworth employs approximately 6,000 people with a presence in more than 25 countries. Its products and services help meet the investment, protection, retirement and lifestyle needs of more than 15 million customers. Genworth operates through three segments: Retirement and Protection, U.S. Mortgage Insurance and International. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit genworth.com. From time to time Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to our plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts as well as statements identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.
Media -- Al Orendorff (U.S.), 1.804.662.2534
Investors -- Alicia Charity (U.S.), 1.804.662.2248