Colin Devine's questions to Genworth Financial Inc (GNW) leadership • Q2 2025
Question
Colin Devine of C. Devine & Associates asked for more details on the LTC recapture, including the size of the policy and the nature of the gain. He also sought clarification on whether new LTC products are being written out of legacy companies or the new CareScout Insurance entity and its ownership structure.
Answer
Executive VP & CFO Jerome Upton explained the recapture related to a favorable arbitration with Blue Cross Blue Shield of Nebraska, resulting in a $26 million pre-tax gain from a $50 million GAAP reserve. President, CEO & Director Thomas McInerney clarified that all new LTC products are issued by the new CareScout Insurance Company, which was redomiciled to Virginia and is owned directly by the holding company, separate from the legacy life insurance company chain.