- A volatile late session for Genworth Financial (NYSE:GNW), which has swung from heavy after-hours declines of -16% to turn positive, +3.7%, after its Q4 report.
- All eyes were on the size of the hole in the company's long-term care reserves, and Genworth took an after-tax GAAP charge of $478M "related to the LTC active life margin review of its blocks acquired before 1996." Estimates varied widely for the difficult-to-calculate figure.
- "I am disappointed by the continued challenges in our older LTC blocks and how it is overshadowing otherwise strong performance and momentum in other businesses," says CEO Tom McInerney.
- Cushioning the reserves blow were results in U.S. mortgage insurance, up to $21M from a prior loss of $2M.
- Press release