Boyle, currently aged 54, was the President of John Hancock Financial Services Inc., and according to the statement published by Genworth, the U.S. division of Manulife Financial Corp., as the CEO of the division Boyle will be overseeing long-term care and life insurance as well as the annuities business of the organization.
Chief Executive Officer Tom McInerney said in his statement that James Boyle brings the necessary experience and expertise to turn around the U.S. life insurance division of the company. He also said that Boyle will be working with the managers with a mission to improve the profitability of the division and also for greater financial strength and capital generation and ultimately helping the division to accelerate its return to profitability and growth.
It is well evident from his statement that McInerney is focusing upon both long-term care coverage and retirement products but according to Mark Palmer, an analyst for BTIG LLC, things might not be as simple and straight as they are expected. During a telephonic interview just before the announcement was made Palmer told that what GNW actually needs is someone with an ability to add value across different multiple units and who is also well grounded in several different areas of the insurance business.
In an interview on December 4 last year, McInerney said that in order to maintain its profit targets the company is certainly counting on increasing its periodic long-term care coverage rate to 4% from 2%. According to a report published by GNW, during the first nine months of 2013, Long-term care accounted for around 52% of the total revenue generated by the company that included $1.63 billion as premium paid by policy holders and $800 million as investment income.
With his more than 30 years of experience in the world of financial services Boyle will be in charge of both LTC insurance and mutual funds and will be reporting directly to McInerney. As the CEO of Genworth Financial Inc. Boyle is replacing Patrick Kelleher who has been working with Genworth since 2007 and his departure was announced October last year and since then McInerney was serving as the interim CEO.
