The Maine Bureau of Insurance has scaled back several long-term care insurance rate increases proposed by Genworth Life Insurance Co., following a regulatory review, according to a report from Best Wire.
Superintendent Bob Carey (pictured above) said the agency required any approved increases above 25% to be implemented over two or three years. One of the larger requests involved a 233% increase for certain policies with high lifetime benefit increase options. That request was reduced to 76.3%, to be phased in at 20.8% annually over three years.
Out of 16 proposed increases, the bureau approved 10 at or above 25%, along with three others at 3.1%, 3.5%, and 25%, respectively. A 1.8% increase was approved in full. The bureau said the decisions were based on a review of actuarial data.
“The bureau’s analysis dug into the details to ensure the rate requests were actuarially justified,” Carey said. “While the bureau reduced many of the requested rates, for some policyholders the rate change will still result in a steep annual premium increase. I encourage policyholders to consult with their insurance broker or other trusted resource to consider their options.”
In a statement, Genworth said it will continue to work with regulators in Maine and other states on measures aimed at balancing premium changes with coverage commitments. “The cost of long-term care continues to rise, and Maine is among the highest-cost states in the country,” the company said. “To meet future claims and fulfill our obligations to policyholders, actuarially justified rate adjustments remain necessary.”
Genworth Financial Inc. reported net income of $54 million for the first quarter of 2025, compared to $139 million during the same period in 2024. The company cited continued losses in its life and long-term care segments, offsetting performance from its Enact Holdings Inc. subsidiary.
The company reported $24 million in gross incremental premium approvals in the quarter as part of its multiyear rate action plan for long-term care. Since 2012, Genworth estimates $31.3 billion in net present value from in-force premium adjustments, according to the report.
Genworth’s underwriting companies hold Best’s Financial Strength Ratings ranging from A– (Excellent) to C++ (Marginal).
