Genworth shares fall after insurer discloses 'material weakness' in how it checks accounting

MarketsAssociated Press

Shares of insurer Genworth Financial Inc. fell Monday after the company disclosed an issue with its accounting.

The company said it failed to notice a $44 million after-tax calculation error due to a "material weakness" in how it checks its accounting. Genworth said in a filing with the U.S. Securities and Exchange Commission Monday that the error did not have a significant effect on its financial statements.

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The Richmond, Virginia-based company said it is working to fix the problem.

Genworth shares fell 42 cents, or 5.4 percent, to $7.33 in afternoon trading Monday.