Strategic Highlights Executed $45M in share repurchases at an average price of $6.91 per share; $590M program-to-date through March 31, 2025 at an average price of $5.73 per share Continued progress on the LTC1 multi-year rate action plan with $24M of gross incremental premium approvals; approximately $31.3B estimated net present value achieved since 2012 from in-force rate actions (IFAs) Strong progress made towards the expansion of the CareScout Quality Network, growing coverage to 90% of the aged 65-plus census population in the United States and delivered 576 matches in the first quarter Financial Highlights Net income2 of $54M, or $0.13 per diluted share, and adjusted operating income2,3 of $51M, or $0.123 per diluted share Enact reported adjusted operating income of $137M2; distributed $76M in capital returns to Genworth U.S. life insurance companies’ RBC4 ratio of 304%5 reflects higher required capital as the limited partnership portfolio grows Genworth holding company cash and liquid assets of $211M6 at quarter-end RICHMOND, Va., April 30, 2025--(BUSINESS WIRE)--Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended March 31, 2025. "Our first quarter results reflect consistent execution across our strategic priorities – delivering value through Enact, ensuring self-sustainability of our legacy insurance companies, and scaling CareScout as a growth engine," said Tom McInerney, President & CEO. "We’re entering the remainder of 2025 with strong momentum and a clear focus on creating value for shareholders and providing innovative solutions for aging Americans." Consolidated Metrics Q1 2025 Q4 2024 Q1 2024 (Amounts in millions, except per share data) Net income (loss)2 $ 54 $ (1 ) $ 139 Net income (loss) per diluted share2 $ 0.13 $ — $ 0.31 Adjusted operating income2,3 $ 51 $ 15 $ 85 Adjusted operating income per diluted share2,3 $ 0.12 $ 0.04 $ 0.19 Weighted-average diluted shares 422.9 431.0 450.3 Consolidated GAAP Financial Highlights Net income in the quarter was driven by Enact, which had strong operating performance Net investment gains, net of taxes, increased net income by $21 million in the current quarter, compared with net investment losses of $32 million in the prior quarter and net investment gains of $39 million in the prior year. The investment gains in the current quarter were driven primarily by mark-to-market adjustments on limited partnerships Changes in the fair value of market risk benefits and associated hedges, net of taxes, decreased net income by $14 million in the quarter driven primarily by the unfavorable change in the yield curve, compared with increases of $2 million in the prior quarter and $18 million in the prior year Net investment income, net of taxes, was $584 million in the quarter, down from $626 million in the prior quarter driven by lower income from limited partnerships, and down from $618 million in the prior year driven by lower income from policy loans and limited partnerships Story Continues Enact GAAP Operating Metrics Q1 2025 Q4 2024 Q1 2024 (Dollar amounts in millions) Adjusted operating income2 $ 137 $ 137 $ 135 Primary new insurance written $ 9,818 $ 13,266 $ 10,526 Loss ratio 12 % 10 % 8 % Equity7 $ 4,159 $ 4,068 $ 3,846 Current quarter results reflected a pre-tax reserve release of $47 million primarily from favorable cure performance. The prior quarter and prior year included pre-tax reserve releases of $56 million and $54 million, respectively Net investment income of $63 million in the current quarter was up from $57 million in the prior year from higher yields and higher average invested assets Primary insurance in-force increased 2% versus the prior year to $268 billion driven by new insurance written (NIW) and continued elevated persistency Primary NIW was down 7% versus the prior year primarily driven by lower estimated market share New delinquencies increased 7% to 12,237 from 11,395 in the prior year primarily from continued seasoning of large, newer books and decreased 11% sequentially primarily from hurricane-related new delinquencies in the prior quarter, which historical experience indicates cure at a higher rate Capital Metric Q1 2025 Q4 2024 Q1 2024 PMIERs Sufficiency Ratio5,8 165 % 167 % 163 % Enact announced an increase to its quarterly dividend from $0.185 to $0.21 per share, payable in June 2025 Enact also announced a new share repurchase program with authorization to purchase up to $350 million of common stock Enact paid a quarterly dividend of $0.185 per share in the current quarter Estimated PMIERs sufficiency ratio of 165%, $1,966 million above requirements Long-Term Care Insurance GAAP Operating Metrics Q1 2025 Q4 2024 Q1 2024 (Amounts in millions) Adjusted operating income (loss) $ (30 ) $ (104 ) $ 3 Premiums $ 571 $ 587 $ 578 Net investment income $ 451 $ 499 $ 464 Liability remeasurement gains (losses) $ 18 $ (117 ) $ 16 Cash flow assumption updates 1 (20 ) 2 Actual variances from expected experience 17 (97 ) 14 Premiums decreased versus the prior quarter primarily driven by seasonal trends and versus the prior year primarily driven by lower renewal premiums as a result of benefit reduction elections in connection with IFAs and prior legal settlements, as well as from policy terminations Net investment income decreased due to lower income from limited partnerships Current quarter liability remeasurement gain included favorable actual variances from expected experience primarily from seasonally high mortality Prior quarter liability remeasurement loss included adverse actual variances from expected experience primarily from lower terminations and higher claims and an unfavorable impact from assumption updates Life and Annuities GAAP Adjusted Operating Income (Loss) Q1 2025 Q4 2024 Q1 2024 (Amounts in millions) Life Insurance $ (44 ) $ 2 $ (33 ) Annuities 11 3 18 Total Life and Annuities $ (33 ) $ 5 $ (15 ) Life Insurance Results in the current quarter reflected unfavorable impacts from seasonally high mortality, which was more unfavorable than the prior year Prior quarter included a net favorable $30 million pre-tax impact from model and assumption updates Annuities Results in the current quarter included lower net spread income from block runoff Prior quarter included an unfavorable $18 million pre-tax impact from annual assumption updates U.S. Life Insurance Companies9 Statutory Results5 and RBC5 (Dollar amounts in millions) Q1 2025 Q4 2024 Q1 2024 Statutory pre-tax income (loss)5,10 $ (1 ) $ (33 ) $ 258 Long-Term Care Insurance 50 (78 ) 151 Life Insurance (34 ) 49 (18 ) Annuities (17 ) (4 ) 125 GLIC Consolidated RBC Ratio4,5 304 % 306 % 314 % Statutory pre-tax loss was $1 million in the current quarter LTC continued to benefit from premium increases and benefit reductions from IFAs, though lower than the prior quarter and prior year as the Choice II legal settlement was materially complete in 2024. LTC also benefitted from seasonally high mortality, partially offset by higher benefit utilization and lower renewal premiums in the current quarter. The prior quarter included a $79 million increase in cash flow testing reserves in GLICNY, partially offset by a net $20 million pre-tax benefit from assumption updates Life insurance results included unfavorable impacts from seasonally high mortality; the prior quarter included a favorable $75 million pre-tax impact from assumption updates Annuity results reflected a net unfavorable impact of $26 million pre-tax from interest rate and equity market performance in the variable annuity products and lower net spread income; the prior quarter included an unfavorable $50 million pre-tax assumption update Current quarter estimated GLIC consolidated RBC ratio was 304%, driven by higher required capital as the limited partnership portfolio grows Corporate and Other The current quarter adjusted operating loss was $23 million, down from $38 million in the prior year primarily driven by timing of tax-related items in the prior year Holding Company Cash and Liquid Assets (Amounts in millions) Q1 2025 Q4 2024 Q1 2024 Holding Company Cash and Liquid Assets11 $ 2116 $ 2946 $ 253 Cash and liquid assets were $211 million at the end of the current quarter, including approximately $98 million of advance cash payments from the company’s subsidiaries held for future obligations Cash inflows during the current quarter consisted of $76 million from Enact capital returns Current quarter cash outflows included $106 million primarily related to annual employee benefit payments, which are reimbursed by the subsidiary businesses throughout the year, $45 million in share repurchases and $8 million related to debt servicing costs Capital Allocation and Shareholder Returns The CareScout Insurance inaugural LTC product was approved in April by the Interstate Insurance Product Regulation Commission (Compact), including 23 jurisdictions Executed $45 million in share repurchases in the current quarter; $110 million remaining in the authorization at the end of the first quarter of 2025 Holding company debt outstanding at the end of the current quarter was $790 million About Genworth Financial Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 company focused on empowering families to navigate the aging journey with confidence, now and in the future. Headquartered in Richmond, Virginia, Genworth provides guidance, products, and services that help people understand their caregiving options and fund their long-term care needs. Genworth is also the parent company of publicly traded Enact Holdings, Inc. (Nasdaq: ACT), a leading U.S. mortgage insurance provider. For more information on Genworth, visit genworth.com, and for more information on Enact Holdings, Inc. visit enactmi.com. Conference Call Information Investors are encouraged to read this press release, summary presentation and financial supplement which are now posted on the company’s website, https://investor.genworth.com. Genworth will conduct a conference call on May 1, 2025 at 10:00 a.m. (ET) to discuss its first quarter results, which will be accessible via: Telephone: 888-208-1820 or 323-794-2110 (outside the U.S.); conference ID # 3161071; or Webcast: https://investor.genworth.com/news-events/ir-calendar Allow at least 15 minutes prior to the call time to register for the call. A replay of the webcast will be available on the company’s website for one year. Prior to Genworth’s conference call, Enact will hold a conference call on May 1, 2025 at 8:00 a.m. (ET) to discuss its first quarter results, which will be accessible via: Telephone: Click here to obtain a dial-in number and unique PIN for Enact’s live question and answer session; or Webcast: https://ir.enactmi.com/news-and-events/events Allow at least 15 minutes prior to the call time to register for the call. Use of Non-GAAP Measures Management evaluates performance and allocates resources based on a non-GAAP financial measure entitled "adjusted operating income (loss)." Management evaluates adjusted operating income (loss) as a key measure to assess performance and support new business initiatives because the measure more accurately reflects overall operating performance, as it minimizes the impact of macroeconomic volatility. The company’s legacy U.S. life insurance subsidiaries, which comprise the Long-Term Care Insurance and Life and Annuities segments, are managed on a standalone basis; therefore, the company does not allocate capital to its Long-Term Care Insurance and Life and Annuities segments. The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) attributable to noncontrolling interests, net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. The company excludes net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating performance. While some of these items may be significant components of net income (loss) determined in accordance with GAAP, the company believes that adjusted operating income (loss), and measures that are derived from or incorporate adjusted operating income (loss), are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Adjusted operating income (loss) is not a substitute for net income (loss) determined in accordance with GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies. Adjustments to reconcile net income (loss) to adjusted operating income (loss) assume a 21% tax rate and are net of the portion attributable to noncontrolling interests. Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments. The tables at the end of this press release provide a reconciliation of net income (loss) available to Genworth Financial, Inc.'s common stockholders to adjusted operating income for the three months ended March 31, 2025 and 2024, as well as the three months ended December 31, 2024 and reflect adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. Statutory Accounting Data The company presents certain supplemental statutory data for GLIC and its consolidating life insurance subsidiaries that has been prepared on the basis of statutory accounting principles (SAP). GLIC and its consolidating life insurance subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners that are prepared using SAP, an accounting basis either prescribed or permitted by such authorities. Due to differences in methodology between SAP and GAAP, the values for assets, liabilities and equity, and the recognition of income and expenses, reflected in financial statements prepared in accordance with GAAP are materially different from those reflected in financial statements prepared under SAP. This supplemental statutory data should not be viewed as an alternative to, or used in lieu of, GAAP. This supplemental statutory data includes the company action level RBC ratio for GLIC and its consolidating life insurance subsidiaries as well as combined statutory pre-tax earnings from the principal U.S. life insurance companies, GLIC, GLAIC and GLICNY. Statutory pre-tax earnings represent the net gain from operations, including the impact from in-force rate actions, before dividends to policyholders, refunds to members and federal income taxes and before realized capital gains or (losses). The combined product level statutory pre-tax earnings are grouped on a consistent basis as those provided on page six of the statutory Annual Statements. Management uses and provides this supplemental statutory data because it believes it provides a useful measure of, among other things, statutory pre-tax earnings and the adequacy of capital. Management uses this data to measure against its policy to manage the U.S. life insurance companies with internally generated capital. Cautionary Note Regarding Forward-Looking Statements This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," "may" or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company’s future business and financial performance. Examples of forward-looking statements include statements the company makes relating to potential dividends or share repurchases; future return of capital by Enact Holdings, Inc. (Enact Holdings), including share repurchases, and quarterly and special dividends; the cumulative economic benefit of approved and future rate actions included in the company’s long-term care insurance multi-year in-force rate action plan; planned investments in and the company’s outlook for new lines of business or new insurance and other products and services, such as those it is pursuing with its CareScout business (CareScout), including through its CareScout services business (CareScout Services) and its CareScout insurance business (CareScout Insurance); the timing of any future insurance offering through CareScout Insurance; future financial performance, including the expectation that quarterly adverse variances between actual and expected experience could persist resulting in future remeasurement losses in the company’s long-term care insurance business; future financial condition and liquidity of the company’s businesses; and statements the company makes regarding the outlook of the U.S. economy. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, inflation, business, competitive, market, regulatory and other factors and risks, including but not limited to, the following: the inability to successfully launch new lines of business, including long-term care insurance and other products and services the company is pursuing with CareScout; the company’s failure to maintain the self-sustainability of its legacy U.S. life insurance subsidiaries, including as a result of the inability to achieve desired levels of in-force rate actions and/or the timing of future premium rate increases and associated benefit reductions taking longer to achieve than originally assumed; other regulatory actions negatively impacting the company’s life insurance businesses; inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results (including as a result of any changes in connection with quarterly, annual or other reviews); the impact on holding company liquidity caused by an inability to receive dividends or any other returns of capital from Enact Holdings, and limited sources of capital and financing and the need to seek additional capital on unfavorable terms; adverse changes to the structure or requirements of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or the U.S. mortgage insurance market; an increase in the number of loans insured through federal government mortgage insurance programs, including those offered by the Federal Housing Administration; the inability of Enact Holdings and/or its U.S. mortgage insurance subsidiaries to continue to meet the requirements mandated by PMIERs (or any adverse changes thereto), the inability to meet minimum statutory capital requirements of applicable regulators or the mortgage insurer eligibility requirements of Fannie Mae or Freddie Mac; changes in economic, market and political conditions, labor shortages and fluctuating interest rates; unanticipated financial events, which could lead to market-wide liquidity problems and other significant market disruption resulting in losses, defaults or credit rating downgrades of other financial institutions; deterioration in economic conditions, a recession or a decline in home prices, all of which could be driven by many potential factors; changes in international trade policy, including the potential impact of new or increased tariffs, retaliatory policies or actions from other countries, and trade wars or other events that lead to political and economic instability; changes in government or monetary policies, including U.S. federal tax laws, tax rates or interest rates; changes within regulatory agencies as a result of the change in the U.S. Administration in January 2025; and fluctuations in international securities markets; downgrades in financial strength and credit ratings and potential adverse impacts to liquidity; counterparty credit risks; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of invested assets; changes in tax rates or tax laws, or changes in accounting and reporting standards; litigation and regulatory investigations or other actions, including commercial and contractual disputes with counterparties; the inability to retain, attract and motivate qualified employees or senior management; changes in the composition of Enact Holdings’ business or undue concentration by customer or geographic region; the impact from deficiencies in the company’s disclosure controls and procedures or internal control over financial reporting; the occurrence of natural or man-made disasters, including geopolitical tensions and war (including the Russian invasion of Ukraine, the Israel-Hamas conflict and economic competition between the United States and China), a public health emergency, including pandemics, or climate change; the inability to effectively manage information technology systems (including artificial intelligence), cyber incidents or other failures, disruptions or security breaches of the company or its third-party vendors, as well as unknown risks and uncertainties associated with artificial intelligence; the inability of third-party vendors to meet their obligations to the company; the lack of availability, affordability or adequacy of reinsurance to protect the company against losses; a decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations; unanticipated claims against Enact Holdings’ delegated underwriting and loss mitigation programs; the impact of medical advances such as genetic research and diagnostic imaging, emerging new technology, including artificial intelligence and related legislation; and other factors described in the risk factors contained in Item 1A of the company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 28, 2025. The company provides additional information regarding these risks and uncertainties in its Annual Report on Form 10-K. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Accordingly, for the foregoing reasons, the company cautions the reader against relying on any forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities laws. Condensed Consolidated Statements of Income (Amounts in millions, except per share amounts) (Unaudited) Three months ended March 31, Three months ended December 31, 2025 2024 2024 Revenues: Premiums $ 862 $ 875 $ 876 Net investment income 739 782 793 Net investment gains (losses) 27 49 (41 ) Policy fees and other income 158 158 154 Total revenues 1,786 1,864 1,782 Benefits and expenses: Benefits and other changes in policy reserves 1,217 1,203 1,199 Liability remeasurement (gains) losses 4 (8 ) 88 Changes in fair value of market risk benefits and associated hedges 18 (23 ) (3 ) Interest credited 99 125 101 Acquisition and operating expenses, net of deferrals 236 236 253 Amortization of deferred acquisition costs and intangibles 60 65 62 Interest expense 26 30 27 Total benefits and expenses 1,660 1,628 1,727 Income from continuing operations before income taxes 126 236 55 Provision for income taxes 36 66 20 Income from continuing operations 90 170 35 Loss from discontinued operations, net of taxes (5 ) (1 ) (5 ) Net income 85 169 30 Less: net income attributable to noncontrolling interests 31 30 31 Net income (loss) available to Genworth Financial, Inc.'s common stockholders $ 54 $ 139 $ (1 ) Income from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: Basic $ 0.14 $ 0.32 $ 0.01 Diluted $ 0.14 $ 0.31 $ 0.01 Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: Basic $ 0.13 $ 0.31 $ — Diluted $ 0.13 $ 0.31 $ — Weighted-average common shares outstanding: Basic 418.3 443.0 425.3 Diluted 422.9 450.3 431.0 Reconciliation of Net Income (Loss) to Adjusted Operating Income (Amounts in millions, except per share amounts) (Unaudited) Three months ended March 31, Three months ended December 31, 2025 2024 2024 Net income (loss) available to Genworth Financial, Inc.'s common stockholders $ 54 $ 139 $ (1 ) Add: net income attributable to noncontrolling interests 31 30 31 Net income 85 169 30 Less: loss from discontinued operations, net of taxes (5 ) (1 ) (5 ) Income from continuing operations 90 170 35 Less: net income from continuing operations attributable to noncontrolling interests 31 30 31 Income from continuing operations available to Genworth Financial, Inc.'s common stockholders 59 140 4 Adjustments to income from continuing operations available to Genworth Financial, Inc.'s common stockholders: Net investment (gains) losses, net12 (28 ) (50 ) 39 Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges13 19 (26 ) (24 ) (Gains) losses on early extinguishment of debt, net — (1 ) (2 ) Expenses related to restructuring (1 ) 7 1 Taxes on adjustments 2 15 (3 ) Adjusted operating income $ 51 $ 85 $ 15 Adjusted operating income (loss): Enact segment $ 137 $ 135 $ 137 Long-Term Care Insurance segment (30 ) 3 (104 ) Life and Annuities segment: Life Insurance (44 ) (33 ) 2 Fixed Annuities 4 11 1 Variable Annuities 7 7 2 Total Life and Annuities segment (33 ) (15 ) 5 Corporate and Other (23 ) (38 ) (23 ) Adjusted operating income $ 51 $ 85 $ 15 Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: Basic $ 0.13 $ 0.31 $ — Diluted $ 0.13 $ 0.31 $ — Adjusted operating income per share: Basic $ 0.12 $ 0.19 $ 0.04 Diluted $ 0.12 $ 0.19 $ 0.04 Weighted-average common shares outstanding: Basic 418.3 443.0 425.3 Diluted 422.9 450.3 431.0 Footnote Definitions ___________________________ 1 Long-term care insurance. 2 All references reflect amounts available to Genworth’s common stockholders. 3 This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (GAAP). See the Use of Non-GAAP Measures section of this press release for additional information. 4 Risk-based capital ratio based on company action level for Genworth Life Insurance Company (GLIC) consolidated. 5 Company estimate for the first quarter of 2025 due to timing of the preparation and filing of the statutory financial statement(s). 6 Includes approximately $98 million and $186 million of advance cash payments from the company’s subsidiaries held for future obligations as of March 31, 2025 and December 31, 2024, respectively. 7 Reflects Genworth’s ownership of equity including accumulated other comprehensive income (loss) and excluding noncontrolling interests of $971 million, $937 million and $873 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively. 8 The Private Mortgage Insurer Eligibility Requirements (PMIERs) sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. 9 Genworth’s principal U.S. life insurance companies: GLIC, Genworth Life and Annuity Insurance Company (GLAIC) and Genworth Life Insurance Company of New York (GLICNY). 10 Net gain from operations before dividends to policyholders, refunds to members and federal income taxes for GLIC, GLAIC and GLICNY, and before realized capital gains or (losses). 11 Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc. 12 Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million for both the three months ended March 31, 2025 and 2024 and $2 million for the three months ended December 31, 2024. 13 Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $1 million and $(3) million for the three months ended March 31, 2025 and 2024, respectively, and $(21) million for the three months ended December 31, 2024. View source version on businesswire.com: https://www.businesswire.com/news/home/20250430163075/en/ Contacts Investors: Christine Jewell [email protected] Media: Amy Rein [email protected] View Comments
Genworth Financial Announces First Quarter 2025 Results
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