Genworth Financial Inc. has hired Vince Bodnar of LTCG to head its long-term care, life and annuities product development.
He is expected to start at Genworth's Richmond, Va., headquarters in a few weeks and will hold the title of senior vice president. Bodnar is currently chief actuary of LTCG, the largest third-party long-term care insurance administrator in the industry.
Bodnar shared his news recently on LinkedIn, and told S&P Global Market Intelligence and others about the move during a conference in Philadelphia. Bodnar was attending the conference to provide state regulators with updates on the Penn Treaty liquidation and information regarding rate increases in a closed meeting.
David O'Leary, president and CEO of Genworth's U.S. life insurance division, confirmed Bodnar's hire, and said he shares the company's "commitment to developing affordable, accessible solutions" to help "give consumers choice and control over how they receive care."
Bodnar said at his new post he will be developing hybrid long-term care products with features that are in line with the modern market. He stressed that long-term care policy development would be important given that his new employer's deal with China Oceanwide Holdings Ltd. is still pending.
China Oceanwide executives have in public statements stressed the importance of expanding the long-term care market in China to address the country's aging population. The deal's deadline was recently extended by the companies to Nov. 30 from Aug. 31. In addition to needing to pass muster with The Committee on Foreign Investment in the United States, the merger also needs to gain several state regulatory approvals.
Traditional long-term care policies that have landed other insurers in trouble, or have caused them to stop writing new long-term care business altogether, were priced too low with actuarial assumptions on longevity and policy lapse rates that proved to be insufficient. Bodnar is familiar with the segment's troubles, and has been providing calculations on estimated liabilities from the Penn Treaty Network America Insurance Co. and American Network Insurance Co. insolvency for at least five years for the National Organization of Life and Health Insurance Guaranty Associations.
The Penn Treaty companies were ordered into liquidation on March 1 by the Commonwealth Court of Pennsylvania.