Genworth Financial (GNW -1.64%) reported a net income of $560 million for the full year in 2013, and $208 million in the fourth quarter, improvements of 72% and 24%, respectively, over 2012 levels.
In total, Genworth saw its net operating income rise 20% from the fourth quarter of 2012 to the fourth quarter of 2013. The global mortgage insurance division saw income fall from $133 million to $107 million, or 20%. However, this was largely the result of a $78 million tax adjustment from last year. Genworth's U.S. Life Insurance business watched its operating income jump 63%, from $73 million to $119 million.
The biggest reason for the jump in its Life Insurance income was from its long-term care (LTC) insurance operations, where net operating income rose to $42 million versus just $7 million in the fourth quarter of 2012. The company highlighted that the business benefited from both "premium increases and reduced benefits," and that its loss ratio was five percentage points lower than the fourth quarter of 2012, standing at 68%.
The LTC division at Genworth saw sales plummet from $60 million to $24 million as a result of the end of its AARP-branded products. It noted that it "is investing in distribution and marketing to increase LTC sales," and that it anticipates a new product launch by the middle of this year. In addition, it continues its premium rate increases that were announced in 2012, and it has received approval from 41 states. This represents two-thirds of its 2017 goal of $250 million to $300 million in additional annual premiums.
"We made significant progress in 2013 accelerating the turnaround of Genworth," added CEO and President, Tom McInerney. "Our fourth quarter of 2013 results were strong and we are particularly pleased with the progress in improving our long term care insurance business and with the good operational performance in the Global Mortgage Insurance Division."
