The insurance company reported operating income of $6 million from Long Term Care Insurance for the second quarter, down from $26 million in the year-ago quarter. The decline was due to a sharp increase in claims in the quarter. Genworth said it will conduct "a comprehensive review of the adequacy of its claim reserves" following the sharp increase, adding that it expects to complete the review before reporting third quarter results.
Following the poor second quarter results analyst firm Compass Point removed Genworth from its Focus List.
TheStreet Ratings team rates GENWORTH FINANCIAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENWORTH FINANCIAL INC (GNW) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."