Dec. 2 (Bloomberg) — Genworth Financial Inc. fell in New York trading as JPMorgan Chase & Co. cut its price target, citing a reserve shortfall at the insurer.

The stock declined 2.2 percent to $8.99 at 9:58 a.m. in New York, the biggest drop in the 21-company Standard & Poor's 500 Insurance Index.

Jimmy Bhullar, an analyst at JPMorgan, lowered his price target for Genworth shares to $11 from $18 today, citing a "cautious" outlook for the insurer's main businesses such as mortgage guaranties and life coverage. Bhullar said Genworth may record costs of $200 million to $300 million to bolster reserves at its long-term care businesses in the current quarter, and that the company's ultimate shortfall may be more than $2 billion.

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