The Genworth and China Oceanwide merger continues to slowly move forward. On January 30, 2019, Genworth and Oceanwide extend merger agreement. This marks the eight waiver and agreement of each party’s right to terminate the previously announced waiver agreement.
The transaction has received all required U.S. insurance regulatory approvals. The closing of the transaction remains subject to other conditions, including the receipt of other required regulatory approvals in Canada and by the U.S. Financial Industry Regulatory Authority (FINRA). In addition, Oceanwide will need to receive clearance in China for currency conversion and the transfer of funds
For a deeper look at the history of this proposed merger including links to documents and rating agencies outlooks, take a look at Investors Like Delaware Hearing on China Oceanwide-Genworth Deal.
Just in: Genworth Financial Announces Fourth Quarter 2018 Results. Fourth Quarter Net Loss Of $329 Million And Adjusted Operating Loss Of $291 Million. Full Year Net Income Of $119 Million And Adjusted Operating Income Of $179 Million. The release includes an update on Genworth’s multi-year LTC rate action plan.
Genworth LTC policy holders should continue to stay the course and monitor their policies annually.
Long Term Care Premium Rate Increase (with any company): If a long term care premium rate increase occurs, keep in mind that other types of policies have rate increases such as auto insurance, homeowners and especially health insurance. The key is to not focus on the rate increase itself but rather on the value of the insurance with the new premium. Does it still make financial sense to keep the policy (is your leverage good when you compare the premiums to the potential benefits)? Can you afford the premium? And of course, do you still need the coverage? Remember, it’s about the coverage that you need, the premium required and the value received.