Genworth hit by tough financial markets

Tough times in financial markets flowed through to the bottom line for Genworth, the Henrico County based insurance giant, as net income for 2022 fell by 22%, or $206 million, to $745 million.

Revenue slipped by 4% or $325 million, to $7.51 billion, even as what the company received in premium payments rose by $384 million to $3.72 billion.

But income from its investments declined by $224 million to $3.15 billion, while it saw a $340 million swing when it cashed in investments, with a loss of $17 million versus a 2021 gain of $323 million.

Genworth's long term care insurance business, squeezed hard by rising claims that outpace the premium increases it has been winning, reported operating income fell 67% to $142 million.

Long term care policies remain in effect for decades, and when they were launched decades ago insurers, including Genworth, made projections for how often people would need long term care and for how long they'd need it that proved far off base.

That's sparked requests for double- and triple digit percentage increases in premiums from firms still in the business or that have stopped selling the coverage but remain liable for claims under policies that remain in force.

Losses from Genworth's life insurance business, meanwhile, narrowed by 45% to a loss of $148 million.

Operating income from its mortgage insurance business, the company's largest profit generator, rose 11% to $578 million.

Tom McInerney, Genworth president and chief executive officer, said the company's financial strength improved in 2022.

"I'm proud of the company's accomplishments in 2022, including achieving our long-term holding company debt target, returning capital to shareholders for the first time in over 13 years and receiving multiple ratings upgrades," he said.