On February 5, shares of Genworth Financial (NYSE:GNW) plunged by 20% as of 11 a.m. ET, after reporting the end of another low quarter the Thursday before. The company reported a net loss of $292 million.
Earlier that day, Genworth announced its decision to suspend sales of all its traditional life insurance and fixed annuity products, including Total Living Coverage. The suspension will take effect March 7 in all markets except Arkansas, South Dakota, and Texas, where sales will continue until appropriate regulatory notice and/or approval periods have run.
The move will free up capital to consolidate the company’s position in Long Term Care.
According to the company’s official bulletin:
“Genworth has decided to direct its efforts exclusively on the market opportunity that provides the most potential for profitable growth and takes the greatest advantage of our expertise, long term care insurance experience, and competitive strength: providing solutions that address the financial challenges of aging.”
Stay tuned for updates as this story develops.