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Genworth Financial identifies material weakness in accounting

Genworth Financial said on Monday it has identified material weakness in its accounting.

The mortgage insurer's shares were down 6.7 percent at $7.23 following the announcement. (Get the latest quote here.)

The company said it failed to identify $44 million after-tax calculation error as it does not have adequate controls to ensure correctly implemented changes to long-term care insurance claim reserves review in the third quarter.

Genworth said failure of disaster recovery systems and business continuity plans could adversely impact profitability and business, and said it aims to complete implementation of the control enhancements during 2015

Up to Friday's close, the stock is down 49 percent in the past 12 months