Genworth Financial (NYSE:GNW) announced on Thursday a new share repurchase program to buy back up to $350M of outstanding common stock. Shares were -0.46% post market to $8.66. The buybacks may be made at the company’s discretion from time to ...

RICHMOND, Va.--(BUSINESS WIRE)---- $GNW #genworth--Genworth Financial announces new $350 million share repurchase authorization. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-32195 GENWORTH FINANCIAL, INC. (Exact name of registrant as specified in its charter) Delaware 80-0873306 (State or other ...

Financial Data and Key Metrics Changes - Genworth reported net income of $51 million for the quarter, with adjusted operating income of $68 million or $0.16 per share, largely driven by a strong performance from ENACT, contributing $141 million to adjusted operating income [6][7][20] - The liquidity position remains strong, ending the quarter with cash and liquid assets of $248 million [7][31] - Total estimated pretax statutory income for U.S. Life insurance companies was $81 million, primarily influenced by favorable impacts to annuities from equity market and interest rate movements [6][27] Business Line Data and Key Metrics Changes - The long-term care (LTC) insurance segment reported an adjusted operating loss of $37 million, driven by a remeasurement loss related to unfavorable actual variances from expected experience [21] - Life insurance reported an adjusted operating loss of $20 million, while annuities generated adjusted operating income of $13 million [22] - ENACT's primary insurance in force grew by 1% year-over-year to $270 billion, supported by new insurance written and elevated persistency [23] Market Data and Key Metrics Changes - The CareScout quality network expanded access to consumers in all 50 states, with nearly 650 home care providers now part of the network [12] - The network achieved nearly 1,400 successful matches between Genworth LTC policyholders and CareScout providers as of the end of the second quarter, with a full-year estimate raised to 2,850 matches [12][13] Company Strategy and Development Direction - Genworth's strategic priorities include enhancing cash flow from ENACT, maintaining self-sustainability in legacy businesses, and driving long-term growth through CareScout [7][9][34] - The company plans to invest approximately $45 million to $50 million in CareScout services in 2025 to build out the platform [31] - The new CareScout Insurance product is expected to launch later this year, with approvals already secured in 29 jurisdictions [13][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and sustain momentum through the remainder of 2025, highlighting the financial strength and operational performance at ENACT [19][34] - The rising costs of LTC services and the increasing number of seniors are expected to make CareScout's offerings more valuable in the future [17][18] - Management remains optimistic about the growth potential of CareScout and the overall financial health of the company [99][100] Other Important Information - The UK High Court issued a favorable judgment in the AXA Santander litigation, with potential recoveries estimated at approximately $750 million [15][33] - The company plans to use proceeds from the litigation for share buybacks, investments in CareScout, and opportunistic debt repayment [44][99] Q&A Session Summary Question: Update on the appeal process regarding the lawsuit - Management explained that Santander has until August 15 to seek permission from the appellate court, which could take 12 to 18 months if granted [39][40] Question: Consideration of a common stock dividend - Management indicated that the majority of shareholders prefer share buybacks over dividends, but the possibility of initiating a dividend remains open [52][53] Question: Potential for settlement in the lawsuit - Management remains open to discussions regarding settlement but feels confident about prevailing in the case [60][62] Question: Size of the LTC recapture and related gain - The arbitration was with Blue Cross Blue Shield of Nebraska, with a gain of $26 million resulting from a favorable outcome [79][82] Question: New LTC products and their issuance - New LTC products will be issued through the CareScout Insurance Company, which is separate from the legacy companies [86][90]

Financial Data and Key Metrics Changes - Genworth reported net income of $51 million for the quarter, with adjusted operating income of $68 million or $0.16 per share, largely driven by a strong performance from ENACT, contributing $141 million to adjusted operating income [6][7][21] - Total estimated pretax statutory income for U.S. Life insurance companies was $81 million, primarily influenced by favorable impacts from equity market and interest rate movements [7][30] - The liquidity position remained strong, ending the quarter with cash and liquid assets of $248 million [7][32] Business Line Data and Key Metrics Changes - The long-term care (LTC) insurance segment reported an adjusted operating loss of $37 million, driven by a remeasurement loss related to unfavorable actual variances from expected experience [22] - Life insurance reported income of $18 million, while annuity products reported income of $89 million, reflecting favorable impacts from market movements [30] - ENACT's primary insurance in force grew 1% year-over-year to $270 billion, supported by new insurance written and elevated persistency [24] Market Data and Key Metrics Changes - The CareScout network expanded to nearly 650 home care providers, covering over 90% of the 65+ census population in the U.S. [13] - The average cost of home care has surpassed $77,000 per year, with significant increases noted in recent years [18] Company Strategy and Development Direction - The company continues to focus on three strategic priorities: enhancing cash flow from ENACT, maintaining self-sustainability in legacy businesses, and driving long-term growth through CareScout [7][10][21] - CareScout aims to create value by delivering savings to U.S. life insurance companies, providing new revenue sources, and growing Genworth's valuation over the long term [10][12] - The company plans to re-enter the market with a low-risk standalone LTC insurance product later this year, targeting approvals in 30 to 35 states [14][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and sustain momentum through the remainder of 2025, highlighting the financial strength and operational performance at ENACT [20][92] - The rising costs of LTC services and the increasing number of aging baby boomers are expected to enhance the value of CareScout's offerings [18][19] - Management remains optimistic about the growth potential of CareScout and the overall financial health of the company [92] Other Important Information - The UK High Court issued a favorable judgment in the AXA Santander litigation, with potential recoveries estimated at approximately $750 million, which have not been factored into capital allocation plans [15][35] - The company plans to allocate between $100 million to $150 million for share repurchases in 2025, depending on business performance and market conditions [34] Q&A Session Summary Question: Update on the appeal process regarding the lawsuit - Management explained that Santander has until August 15 to seek permission from the appellate court, which could take two to three months for a decision [40][42] Question: Consideration of a settlement to eliminate the possibility of an appeal - Management remains open to discussions but feels confident about prevailing in the case [57] Question: Possibility of initiating a common stock dividend - Management indicated that the majority of shareholders prefer share buybacks over dividends at this time, but the board continues to evaluate the option [51][52] Question: Details on the LTC recapture and new LTC products - The LTC recapture involved a favorable arbitration outcome, and new LTC products will be issued through CareScout Insurance Company [78][84]

Financial Performance - Genworth reported net income of $51 million, or $0.12 per diluted share, and adjusted operating income of $68 million, or $0.16 per diluted share[12] - Enact's adjusted operating income was $141 million, with $94 million in capital returns distributed to Genworth[12] - U S life insurance companies' RBC ratio was 304%[12] - Genworth holding company cash and liquid assets totaled $248 million at quarter-end[12] Strategic Progress - Enact has provided over $1 billion in capital returns since its IPO[16] - $30 million in share repurchases were executed in 2Q[16] - $620 million in share repurchases have been executed program-to-date through June 30, 2025[16] - Estimated net present value of $31 6 billion achieved from LTC IFAs since 2012[16] CareScout Update - CareScout achieved 55% of its 2025 match target, with 804 matches in 2Q[20, 16] - CareScout is targeting 30-35 jurisdictions for its inaugural LTC product launch[23] Long-Term Care Insurance (LTC) - LTC statutory pre-tax income loss was $(26) million[41] - $41 million of gross incremental LTC premium approvals were obtained in 2Q[16] - The cumulative benefit reduction rate in LTC is 60 0%[16]

Exhibit 99.2 GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2025 | Table of Contents | Page | | --- | --- | | Investor Letter | 3 | | Use of Non-GAAP Measures | 4 | | Results of Operations and Selected Operating Performance Measures | 5 | | Financial Highlights | 6 | | Consolidated Quarterly Results | | | Consolidated Net Income (Loss) by Quarter | 8 | | Reconciliation of Net Income (Loss) to Adjusted Operating Income | 9 | | Consolidated Balance Sheets | 10-11 | | Consolidated Balance Sheets ...

Capital Returns and Share Repurchases - Enact Holdings provided $76 million of capital returns to Genworth Holdings in Q1 2025, contributing to strategic initiatives and share repurchases[292] - Genworth Financial has repurchased $600 million worth of shares since the initiation of its share repurchase program in May 2022[292] - Genworth Holdings received $76 million in capital returns from Enact Holdings during the first quarter of 2025, including $53 million from share repurchases and $23 million from dividends[343] - Enact Holdings announced a new share repurchase program allowing for the repurchase of up to $350 million of its common stock[452] - Genworth Financial repurchased 6,516,857 shares at an average price of $6.91 per share for a total of $45 million during the three months ended March 31, 2025[453] Long-Term Care Insurance Performance - The long-term care insurance multi-year in-force rate action plan has achieved an estimated cumulative economic benefit of approximately $31.3 billion since 2012[293] - CareScout Services increased its network of long-term care providers to 543, a 10% increase from December 31, 2024, and had 576 matches in Q1 2025, a 34% increase from Q4 2024[295] - Genworth plans to invest approximately $45 million to $50 million in CareScout Services for the full year 2025 to enhance its offerings[295] - The individual long-term care insurance product, CareScout Care Assurance, was approved for 23 jurisdictions and is set to launch later in 2025[296] - Genworth plans to contribute $75 million of capital to its CareScout Insurance subsidiary for regulatory capital requirements in 2025[296] - The Long-Term Care Insurance segment reported an adjusted operating loss of $30 million in Q1 2025 compared to a profit of $3 million in Q1 2024[317] - Total revenues for the Long-Term Care Insurance segment decreased by 5% to $1.051 billion for the three months ended March 31, 2025, compared to $1.105 billion in the same period in 2024[384] - Premiums in the Long-Term Care Insurance segment decreased by 1% to $571 million, primarily due to lower renewal premiums and policy terminations[384] - The company expects overall claims costs in the Long-Term Care Insurance segment to continue increasing as the average attained ages of insured individuals rise[376] - The company has observed an increase in the cost of care in the Long-Term Care Insurance business, which could adversely impact liquidity and financial condition if the trend persists[378] - The company is pursuing premium rate increases and associated benefit reductions on in-force policies to improve the risk and profitability profile of the Long-Term Care Insurance business[381] - Legal settlements regarding premium increases have covered approximately 70% of the long-term care insurance block, resulting in a net favorable economic impact by reducing tail risk[382] - The long-term care insurance business expects overall claim costs to continue increasing over time as the blocks age, with peak claim years over a decade away[460] - Renewal premiums on the in-force block of the legacy long-term care insurance business are expected to decline over time, partially offset by future approved rate actions[461] Financial Performance Overview - Total revenues decreased by 4% from $1,864 million in Q1 2024 to $1,786 million in Q1 2025[305] - Net income available to common stockholders dropped by 61% from $139 million in Q1 2024 to $54 million in Q1 2025[305] - Adjusted operating income available to common stockholders decreased by 40% from $85 million in Q1 2024 to $51 million in Q1 2025[317] - Income from continuing operations fell by 47% from $170 million in Q1 2024 to $90 million in Q1 2025[305] - Basic earnings per share from continuing operations decreased by 56% from $0.32 in Q1 2024 to $0.14 in Q1 2025[316] - Net investment income declined by 5% from $782 million in Q1 2024 to $739 million in Q1 2025[305] - Policy fees and other income remained stable at $158 million for both Q1 2024 and Q1 2025[305] - Benefits and other changes in policy reserves increased by 1% from $1,203 million in Q1 2024 to $1,217 million in Q1 2025[305] - Interest expense decreased by 13% from $30 million in Q1 2024 to $26 million in Q1 2025[305] - Net income for the first quarter of 2025 was $54 million, down from $139 million in the same period of 2024, with adjusted operating income decreasing from $85 million to $51 million[322] Investment and Capital Management - The investment portfolio as of March 31, 2025, totaled $60.585 billion, an increase from $59.976 billion as of December 31, 2024[434] - The fixed maturity securities portfolio was 97% investment grade, comprising 75% of total invested assets and cash[427] - As of March 31, 2025, the company posted initial margin of $81 million to clearing agents, which was $41 million more than required by the clearinghouse[427] - Net investment gains for the three months ended March 31, 2025, were $27 million, compared to $49 million in the same period of 2024[433] - The company recorded $18 million of lower net realized losses related to the sale of available-for-sale fixed maturity securities in the current year[433] - The carrying value of available-for-sale fixed maturity securities was $31.103 billion, representing 51% of total invested assets as of March 31, 2025[434] - Total assets increased by $385 million from $86,871 million as of December 31, 2024, to $87,256 million as of March 31, 2025[441] - Total liabilities increased by $135 million from $77,440 million as of December 31, 2024, to $77,575 million as of March 31, 2025[442] - Total equity increased by $250 million from $9,431 million as of December 31, 2024, to $9,681 million as of March 31, 2025[443] - Net cash from operating activities was $34 million for the three months ended March 31, 2025, compared to net cash used of $(107) million in the prior year[447] Ratings and Regulatory Actions - Fitch Ratings upgraded the financial strength rating of Enact Mortgage Insurance Corporation to "A" from "A-" with a stable outlook on January 17, 2025[298] - The consolidated risk-based capital ratio for U.S. life insurance subsidiaries was approximately 304% as of March 31, 2025, down from 306% at the end of 2024[324] - State filings approved for in-force rate actions were 19 in Q1 2025, down from 23 in Q1 2024, with impacted in-force premiums decreasing from $166 million to $85 million[396] - The weighted-average percentage rate increase approved rose to 28% in Q1 2025 from 25% in Q1 2024, while gross incremental premiums approved decreased from $41 million to $24 million[396] - The cumulative economic benefit of approved rate actions since 2012 through Q1 2025 was approximately $31.3 billion on a net present value basis[396] - The company continues to pursue significant premium rate increases and associated benefit reductions to maintain the self-sustainability of its legacy U.S. life insurance subsidiaries[393] Market and Economic Conditions - Employee costs have increased due to wage inflation and a competitive labor market, with potential material adverse impacts on liquidity if inflationary pressures persist[462] - Market risk remains unchanged since December 31, 2024, with no material changes in market conditions affecting interest rates[470] - The company has provided a guarantee for AXA's recovery of certain PPI mis-selling losses, with a potential payment obligation of up to £80 million[466] - There have been no material changes to guarantees or contractual obligations compared to the amounts disclosed in the 2024 Annual Report[467]

Financial Data and Key Metrics Changes - Genworth reported net income of $54 million or $0.13 per share for Q1 2025, with adjusted operating income of $51 million [9][24] - The liquidity position remains strong, ending the quarter with cash and liquid assets of $211 million [10][36] - The total estimated pretax statutory loss for U.S. Life insurance companies was $1 million, primarily driven by losses in life and annuities [9][32] Business Line Data and Key Metrics Changes - Enact contributed $137 million in adjusted operating income, reflecting strong performance and reserve releases [9][28] - The long-term care insurance segment reported an adjusted operating loss of $30 million, impacted by lower limited partnership income and anticipated premium declines [25] - Life and Annuities reported an adjusted operating loss of $33 million, with life insurance losses of $34 million due to seasonally high mortality [27][32] Market Data and Key Metrics Changes - CareScout achieved a significant increase in matches between policyholders and providers, growing from 52 matches in Q1 2024 to 576 in Q1 2025, representing over a 10x increase year over year [13] - The CareScout quality network now includes nearly 550 providers, achieving 90% coverage for the aged 65 census population in the U.S. [14][15] Company Strategy and Development Direction - The company continues to focus on three strategic priorities: increasing shareholder value, maintaining self-sustainability of legacy businesses, and expanding CareScout services [10][12] - Genworth is committed to managing U.S. life insurance companies as a closed system, leveraging existing reserves and capital to cover future claims without additional capital injections [31] - The company is developing a hybrid long-term care product and expanding its CareScout network to include assisted living communities [16][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential macroeconomic challenges, including tariff negotiations and possible recession scenarios, while emphasizing the growing demand for aging care products [20][21] - The company anticipates continued strong growth in CareScout and expects to return similar levels of capital to shareholders in 2025 as in 2024 [29][38] Other Important Information - The company is actively engaged with policymakers regarding the WISH Act, which aims to provide financial support for long-term care [17][66] - Genworth has agreed to cover up to £80 million of AXA's losses in ongoing litigation, aligning interests for maximum recovery [41][42] Q&A Session Summary Question: Clarification on AXA litigation agreement - Management clarified that the agreement with AXA ensures alignment of interests for maximum recovery, with AXA claiming damages of approximately $700 million [41][42] Question: Future capital contributions for CareScout - Management indicated that while significant upfront capital is required for the new insurance entity, future contributions are expected to be manageable, potentially in the range of $20 million to $25 million over time [44][48] Question: Breakeven timeline for CareScout quality network - Management noted that while CareScout is not yet at breakeven, the projected savings from the network could significantly impact Genworth's claim costs, adding value to the company [50][54] Question: Tailwinds from the WISH Act for CareScout - Management discussed how the WISH Act could provide a framework for catastrophic coverage, aligning well with CareScout's offerings and addressing the long-term care financing gap [58][66]

Financial Data and Key Metrics Changes - Genworth reported net income of $54 million or $0.13 per share for the first quarter of 2025, with adjusted operating income of $51 million [9][24] - The total estimated pretax statutory loss for U.S. Life insurance companies was $1 million, primarily driven by losses in life and annuities [10][31] - Liquidity remains strong with cash and liquid assets of $211 million at the end of the first quarter [11][34] Business Line Data and Key Metrics Changes - Enact contributed $137 million in adjusted operating income, reflecting strong performance and reserve releases [9][27] - The long-term care insurance segment reported an adjusted operating loss of $30 million, impacted by lower limited partnership income and anticipated premium declines [25] - Life and Annuities reported an adjusted operating loss of $33 million, with Life Insurance reflecting a loss of $44 million due to seasonally high mortality [26][31] Market Data and Key Metrics Changes - CareScout achieved a dramatic increase in matches between Genworth policyholders and quality network providers, rising to 576 from 52 year-over-year [14] - The CareScout quality network now includes nearly 550 providers, achieving 90% coverage for the aged 65 census population in the U.S. [15][16] Company Strategy and Development Direction - Genworth is focused on three strategic priorities: increasing shareholder value, maintaining self-sustainability of legacy businesses, and expanding CareScout services [11][12][13] - The company is actively engaging with policymakers regarding the WISH Act, which aims to provide financial support for long-term care [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential macroeconomic challenges, including a moderate recession, due to low holding company debt and strong liquidity [21][22] - The demand for aging care products is expected to rise significantly as the baby boomer population ages, regardless of economic conditions [22][23] Other Important Information - Genworth's share repurchase program has repurchased a total of $600 million worth of shares at an average price of $5.75 per share since its initial authorization [12] - The company is developing a hybrid long-term care product and has received product approval from 23 states [17] Q&A Session Summary Question: Clarification on AXA litigation agreement - Management clarified that the agreement with AXA involves covering up to £80 million of losses, aligning interests for maximum recovery [41][42][43] Question: Future capital contributions for CareScout - Management indicated that the initial capital contribution of $75 million is significant, but future contributions would be manageable, likely in the range of $20-25 million over time [44][46][48] Question: Breakeven timeline for CareScout quality network - Management noted that while breakeven may take time, the projected savings from the network could already add significant value to the company [49][50][53] Question: Tailwinds from the WISH Act for CareScout - Management discussed how the WISH Act could provide a framework for catastrophic coverage, aligning well with CareScout's offerings [57][62][63]