by John Darer® CLU ChFC MSSC RSP CLTC
Genworth announced in a February 4, 2016 news release that it has "decided to suspend all sales of traditional life insurance and fixed annuity products in the first quarter of 2016 given the continued impact of ratings and recent sales levels of these products." Genworth quickly moved to reassure customers and agents that this will not affect in-force policies.
Read the Genworth announcement here Download Genworth 2-4-2016 announcement from CEO re suspension of life and annuity sales and outlook
Read the Genworth earnings release here
Much of Genworth's troubles stem from its Long Term Care portfolio where claims have exceeded expectations. Genworth is the largest writer of long term care insurance in the USA. The company is seeking potential restructuring solutions to isolate the business segment
Genworth and its predecessor companies wrote structured settlement annuities until August 26, 2006. Genworth was a spin off from a GE Capital Corporation subsidiary called GE Financial Services. Among the former structured settlement annuity issuers folded into the Genworth family were:
- First Colony Life Insurance Company
- American Mayflower Life Insurance Company
- GE Capital Life Insurance Company
- GE Capital Life Assurance Company of New York
- United Pacific Life
- Federal Home Life
CASH NOW VULTURE ALERT!
Annuitants who are receiving structured settlement payments from Genworth Life companies are highly likely to be targeted by the vultures of the structured settlement secondary market seeking to "help them out". Genworth annuitants may be harassed by phone calls, mailers, calls to their private cell phones and worse.
The best thing a Genworth annuitant can do is to only seek advice from a licensed insurance agent or agency, or a licensed financial adviser, preferably one that actually placed the business. Always ask for proof of licensing or research through the producer or agent/broker look up on the website of your state's insurance department. Generally these people do not have the conflict of interest that the cash now vultures have.
Vultures in the structured settlement secondary market have made huge profits stalking and preying upon annuitants from:
- AIG subsidiaries in 2008, days after the US government bailout of the parent company. AIG is still standing and its subsidiaries have a strong surplus reserve and are making their structured settlement payments
- John Hancock and Allstate annuitants when those companies merely said they had stopped writing structured settlements. Both those companies still standing and making their structured settlement payments.
- Scares about rising interest rates starting in 2010 that didn't happen. The scare tactics may have needlessly resulted in huge financial losses for those who succumbed to the terror.