Genworth Financial Inc. (GNW) stock plummeted 8.36% in intraday trading on Wednesday, following the release of its fourth-quarter 2024 earnings report and disappointing outlook for future rate increases on its long-term care insurance policies.

The company reported a net loss of $1 million for the quarter and adjusted operating income of $15 million, weighed down by a $104 million loss in its long-term care insurance segment. This was driven by unfavorable actual-to-expected experience and assumption updates, including lower expectations for future rate action approvals.

While Genworth made progress on its multi-year rate action plan with $343 million in premium rate increase approvals in 2024, the company lowered its outlook for the total remaining value to be achieved from rate actions to $4.6 billion, down $0.7 billion from prior estimates. This reduction in expected future rate increases on long-term care policies appears to have spooked investors.