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.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.