Genworth (previously First Colony), a carrier for Life, Long Term Care and Annuity products, has recently gone through a downgrade in their financial strength rating status from A- to B++, and they have suspended the sale of any new Life Insurance and Fixed Annuity Products. As a company they have made a decision not to send a notification to policyholders; instead they have posted an open letter on their website.
Why should this matter to policyholders? A company’s financial strength rating is a reflection of their ability to meet their financial obligations. The reasoning behind the downgrade can be found here. This is the type of information that should be shared with consumers, and at Early, Cassidy & Schilling, Inc. we see it as our obligation to policyholders to let them know what this means for them.
Early, Cassidy & Schilling, Inc. has taken a proactive approach and is reaching out to our current policy holders. Below is a copy of the letter that has gone out from one of our Principals, Paul J. Phelan, CFP®, regarding the situation and the action we are taking. Our clients can continue to rely on Early, Cassidy & Schilling, Inc. to keep them informed about market changes with any of our carriers.
Our records indicate that at some point in time, you or employees of your business were covered by a policy issued by Genworth (formerly First Colony), and we recently learned that the A.M. Best Company (a recognized provider of news, credit ratings and financial data products and services for the insurance industry) has downgraded Genworth from A- to B++.
Since an insurance company’s financial condition can have a significant impact on their ability to meet their current and future claims responsibilities, we are providing you with the above information to enable you to make an informed judgment as to whether you wish to continue coverage with Genworth. Early, Cassidy & Schilling, Inc. has multiple carriers who would potentially be able to quote replacement coverage for you. Many of these carriers have a higher AM Best rating but may charge higher premiums.
More information regarding Genworth’s recent earnings release and their decision to suspend the sales of traditional life insurance and fixed annuity products can be found at their website: https://www.genworth.com.
Please feel free to contact me with any questions about your Genworth or First Colony policy or any other Life, Long Term Care or Disability Insurance questions you may have.
Paul J. Phelan, CFP®