One insurer is taking a massive hit on the Stock Exchange after reporting earnings that “widely missed expectations” relating to its long-term care business.
One insurer is taking a massive hit on the Stock Exchange after reporting earnings that “widely missed expectations” relating to its long-term care business.
In morning trading on Thursday of last week, Genworth stock was down nearly 36 per cent to about $9 per share. The previous day, the stock had closed around $14.
At the core of the drop in share prices were the findings from a Genworth review: People are living much longer than had been anticipated.
“The company made changes to its assumptions and methodologies primarily impacting claim terminations,” stated an earnings release from Genworth, reported in Business Insider, “most significantly in later duration claims, and benefit utilization reflecting that claimants are staying on claim longer and utilizing more of their available benefits in aggregate than had previously been assumed in the company's reserve calculations."
At current prices, the company has a market cap of about $4.4 billion, absorbing a hit of $844 million following the review of its long-term care business.
The loss breaks down on a per-share basis of $1.70. The market had been anticipating earnings of $0.19.
In morning trading on Thursday of last week, Genworth stock was down nearly 36 per cent to about $9 per share. The previous day, the stock had closed around $14.
At the core of the drop in share prices were the findings from a Genworth review: People are living much longer than had been anticipated.
“The company made changes to its assumptions and methodologies primarily impacting claim terminations,” stated an earnings release from Genworth, reported in Business Insider, “most significantly in later duration claims, and benefit utilization reflecting that claimants are staying on claim longer and utilizing more of their available benefits in aggregate than had previously been assumed in the company's reserve calculations."
At current prices, the company has a market cap of about $4.4 billion, absorbing a hit of $844 million following the review of its long-term care business.
The loss breaks down on a per-share basis of $1.70. The market had been anticipating earnings of $0.19.
