Voya Financial will save up to $130 million in annual expenses after the company sells its annuity business, chairman and CEO Rod Martin said Wednesday.<\/p>\n
Once the annuity sale closes in the second or third quarter, the company will review its life insurance portfolio.<\/p>\n
But it would be \u201cpremature to draw a conclusion that we\u2019ve made any decision other than we are again going to examine every single thoughtful option,\u201d Martin told analysts in a conference call.<\/p>\n
The sale of Voya\u2019s annuity business is expected to recast the company into a leaner and more nimble organization focused on institutional asset management, benefits and retirement.<\/p>\n
Voya reported a first-quarter loss of $143.5 million, after reporting a profit in the same period a year earlier.<\/p>\n
On a per-share basis, the New York-based company said it had a loss of 75 cents. Earnings, adjusted for non-recurring costs, came to 81 cents per share.<\/p>\n
The results beat Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of 74 cents per share.<\/p>\n
The retirement, investment and insurance company posted revenue of $2.21 billion in the period. Its adjusted revenue was $303.2 million, which also topped Street forecasts. Fourteen analysts surveyed by Zacks expected $293.8 million.<\/p>\n
Unum executives on Wednesday moved to reassure analysts that the company\u2019s long-term care business is different from that of GE\u2019s.<\/p>\n
GE said in January that it would boost reserves by about $15 billion over seven years and take a $6.2 billion charge against the fourth quarter following a review and reserve testing for GE Capital\u2019s run-off insurance portfolio.<\/p>\n
The announcement led analysts to wonder if other insurers were adequately reserved to cover their respective long-term care businesses.<\/p>\n
Large blocks of Unum\u2019s long-term care business rest with group long-term care, not individual long-term care, said Unum CFO Jack McGarry.<\/p>\n
Group long-term care is employer funded, follows conservative plan designs and paid premiums come with different lapse expectations, he said.<\/p>\n
Unum has carried out two long-term care reviews, one in 2011 and another in 2014, compared with GE\u2019s one-time review, McGarry said.<\/p>\n
On Tuesday, Unum reported first-quarter profit of $273.5 million.<\/p>\n
On a per-share basis, the Chattanooga, Tennessee-based company said it had net income of $1.23. Earnings, adjusted for non-recurring costs, were $1.24 per share.<\/p>\n
The results fell short of Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.25 per share.<\/p>\n
The insurance company posted revenue of $2.9 billion in the period, beating Street forecasts. Three analysts surveyed by Zacks expected $2.88 billion.<\/p>\n
Unum shares have declined 13 percent since the beginning of the year, while the Standard & Poor’s 500 index has decreased almost 1 percent.<\/p>\n
Genworth and China Oceanwide have agreed to extend to July 1 the deadline to terminate a previously announced merger agreement.<\/p>\n
The extension, the fourth since the proposed merger was announced in late 2016, was filed with the Committee on Foreign Investment in the United States, or CFIUS.<\/p>\n
The companies requested the extension due to delays in receiving state regulatory approvals, Genworth said.<\/p>\n
Genworth, which sells mortgage and long-term care insurance, sees the merger as the best solution in facing the challenges in the long-term care market.<\/p>\n
For China Oceanwide, the deal represents a foothold in the U.S., a market with millions of aging baby boomers looking for long-term care.<\/p>\n
Genworth on Tuesday reported first-quarter earnings of $112 million.<\/p>\n
The Richmond, Virginia-based company said it had net income of 22 cents per share. Earnings, adjusted for non-recurring costs, were 25 cents per share.<\/p>\n
The financial services company posted revenue of $2.12 billion in the period. Its adjusted revenue was $2.15 billion.<\/p>\n
InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at cyril.tuohy@innfeedback.com.<\/span><\/em><\/p>\n \u00a9 Entire contents copyright 2018 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.<\/span><\/strong><\/p>\n The post Voya, Unum, Genworth Earnings Calls<\/a> appeared first on InsuranceNewsNet<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Voya Financial will save up to $130 million in annual expenses after the company sells its annuity business, chairman and…<\/p>\n The post Voya, Unum, Genworth Earnings Calls<\/a> appeared first on InsuranceNewsNet<\/a>.<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/8425"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=8425"}],"version-history":[{"count":1,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/8425\/revisions"}],"predecessor-version":[{"id":8426,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/8425\/revisions\/8426"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=8425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=8425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=8425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}