UPDATE 2-Genworth sees tougher path to recovery, shares plunge

Thu Nov 6, 2014 12:56pm EST
 
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* Says plans to stay in long-term care business

* CEO says open to all "strategic alternatives"

* Suspends dividend in life business until end of 2015

* Shares fall as much as 38 pct, top loser on NYSE (Updates to add CEO comment, details)

By Tanya Agrawal

Nov 6 (Reuters) - Genworth Financial Inc lost more than a third of its market value after the life and mortgage insurer said a turnaround in its long-term care business would take longer than expected and posted a surprise quarterly loss.

Shares of Genworth, the largest long-term care insurer in the United States, fell as much as 38 percent, wiping out about $2.7 billion of the company's market value.

A pre-tax charge of $531 million to cover losses in its long-term care insurance business pushed Genworth to a huge loss in the third quarter and raised questions on the future of the business.

The company said on a conference call on Thursday it was open to all "strategic alternatives" but did not provide further details.   Continued...