Genworth Financial To Lay Off 21 At Virginia Offices

Genworth Financial Inc. is laying off about 80 employees, including 21 workers at the company’s corporate headquarters in Henrico County.

The insurance giant said about 35 people also will be laid off from the company’s operation in Lynchburg. The rest are remote workers.

Genworth is temporarily suspending the sales of individual long-term care insurance and income Assurance Annuity products through brokerage general agencies.

Instead, the company will be distributing these products directly to consumers and through affinity and association programs along with other distribution channels.

The company will continue to sell group long-term care insurance through traditional channels, spokeswoman Julie Westermann said.

Genworth continues to try fixing its long-term care insurance business, which provides coverage for nursing home and at-home care.

The company has sold long-term policies for many years, but the business unit has struggled on and off with losses because coverage costs turned out to be higher than anticipated on older policies and low interest rates hurt investment returns.

“Our commitment to helping Americans address the financial challenges of aging remains as strong as ever, and we look forward to bringing new products and services to market that will enable people who need care as they age live their lives as they wish, how and where they prefer to receive that care,” Westermann said.

Genworth is being acquired by China Oceanwide Holdings Group Co. Ltd in a deal valued at $2.7 billion.

The company said in late January that it and the China-based company have agreed to extend the deadline for the merger to Friday. The acquisition was first announced in October 2016.

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