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.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 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.
