Thursday, February 12, 2015

More Layoffs Coming at Genworth

The Henrico insurer is still struggling after the great recession.

Posted By on Thu, Feb 12, 2015 at 3:37 PM

The Great Recession of 2007-2008 seems like a long time ago. But apparently it’s still affecting Genworth, a Henrico-based insurance firm that has 1,200 employees at its headquarters office here.

President and Chief Executive Thomas J. McInerny says there may be job cuts in Richmond and also at the company’s functions in Lynchburg while the firm looks to save $100 million.

Genworth reported losses of $760 million in last year’s fourth quarter and losses of $1.24 billion for all of 2014. The losses appear to come from weaknesses in its long-term health sector.

“The LTC [long term care] margin is positive in the aggregate but as we indicated, might be the case in our past disclosures, the margin turned negative on acquired LTC business which resulted in an after-tax, non-cash GAAP charge of $478 million,” McInerny said in a conference call yesterday.

Genworth, which was spun off from General Electric in 2004 and is one of Richmond’s Fortune 500 companies, took a major hit during the recession because of its big exposure to mortgage lending. It's struggled to recover from that, but has been through layoffs, including one in 2013.

Its stock has stumbled from about $18 a share in April 2014 to $8.33 a share. The price got a small bump after the recent cost-cutting announcement.

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