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Genworth's life division struggled to generate new sales in 2018


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Genworth's life division struggled to generate new sales in 2018

Genworth Financial Inc. generated little in the way of new product sales in 2018, as new premiums accounted for a tiny fraction of total premiums.

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Genworth's combined new premiums, reported as first-year and single premiums within regulatory filings, have fallen since the insurer decided to suspend all sales of traditional life insurance and fixed annuity products at the beginning of 2016. At that time, CEO Thomas McInerney said the insurer's commercial activity would focus on individual and group long-term care products as well as a new immediate annuity, Income Assurance. He also expected near-term sales of long-term care to remain low.

Genworth is not alone in seeing depressed new sales, as fewer than 72,000 new individual long-term care policies were issued in 2017, down from 208,000 in 2010.

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Although regulatory filings only capture new premiums under the accident and health line of business, the majority of Genworth's accident and health premiums are from its long-term care policies.

Genworth's new premiums in 2018 for individual accident and health and annuities were $5.5 million and $26.5 million, respectively. A spokesperson cited the low sales as the reason the company temporarily suspended sales of individual long-term care and the Income Assurance annuity within the brokerage general agency channel. Genworth will continue to offer group long-term care.

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Among the types of policies Genworth was offering for new sales in 2018, the number of policies or certificates issued during the year was lower than the number of policies that left its book of business during the period. Genworth only issued 1,619 new individual accident and health policies in 2018.

A merger between China Oceanwide Holdings Ltd. and Genworth is still pending. The deal deadline has been extended multiple times and is currently set to expire March 15.

For more specific long-term care details, U.S. insurers submit Long-Term Care Experience Reporting Exhibits Results within their annual statements. The long-term exhibit is available within the supplement section, which is filed with the National Association of Insurance Commissioners on April 1.

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Click here to view a template that shows a large array of NAIC exhibits for life insurers for a single period.