RICHMOND, Va., Feb. 26, 2019 /PRNewswire/ -- Genworth Financial, Inc. (GNW) announced today its statutory capital and cash flow testing (CFT) results for its U.S. life insurance companies for the year ended December 31, 2018. Additional financial information for the year ended December 31, 2018 will be included in the company's upcoming Annual Report on Form 10-K to be filed with the Securities and Exchange Commission. The statutory capital and CFT results include:
- The aggregated CFT results for Genworth Life Insurance Company (GLIC) resulted in a positive margin of approximately $1.5 billion after including approximately $2.1 billion of provisions for adverse deviation (PADs). The 2018 margin results improved by approximately $0.9 billion, reflecting a modest increase in benefits of future expected premiums and associated benefit reductions, along with other aging and modeling updates, partially offset by the impact from higher expected future claims.
- The aggregated CFT results for Genworth Life Insurance Company of New York (GLICNY) indicate no incremental CFT reserves beyond those held at December 31, 2017. These results include approximately $1.2 billion of New York Department of Financial Services (NYDFS) required PADs. During 2018, the NYDFS approved a previously filed premium rate increase, which along with other assumption and methodology updates, resulted in the elimination of the need for the phase-in of additional CFT reserves previously agreed to with NYDFS. The NYDFS currently does not allow rate increases for long-term care insurance business to be used in CFT until such increases have been approved. As of year-end 2018, the company action level risk-based capital (RBC) ratio for GLICNY is 223 percent.
- Stand-alone testing (Actuarial Guideline 38) of universal life insurance products with secondary guarantees resulted in a $123 million increase in statutory reserves in the fourth quarter of 2018 for Genworth Life and Annuity Insurance Company (GLAIC). This included the final $95 million of a previously agreed upon phase-in of Actuarial Guideline 38 Section 8D reserves. The remaining reserve addition was primarily driven by an update to our mortality expectations. As of year-end 2018, the company action level RBC ratio for GLAIC is 422 percent.
- The consolidated U.S. life insurance company action level RBC ratio of GLIC is 199 percent as of year-end 2018. This result included the above impacts, fourth quarter assumption updates and RBC changes related to tax reform.
About Genworth Financial
Genworth Financial, Inc. (GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
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