Genworth Financial (NYSE:GNW) Q4 2025 Earnings call February 24, 2026 09:00 AM ET Company ParticipantsChristine Jewell - Head of Investor RelationsJerome Upton - CFOSamir Shah - President and CEO of CareScout ServicesTom McInerney - President and CEOOperatorGood morning, ladies and gentlemen, and welcome to Genworth Financial's fourth quarter 2025 earnings conference call. My name is Lisa, and I'll be your coordinator today. At this time, all participants are in a listen-only mode. We will facilitate a ques ...

Financial Data and Key Metrics Changes - Genworth reported net income of $2 million and Adjusted Operating Income of $8 million for Q4 2025, driven by strong performance from Enact, which contributed $146 million to Adjusted Operating Income, partially offset by a loss of $114 million in the closed block, primarily from LTC [4][21] - For the full year 2025, Adjusted Operating Income was $144 million, with Enact contributing $558 million, while the Closed Block segment reported an adjusted operating loss of $317 million [23][24] Business Line Data and Key Metrics Changes - Enact's Adjusted Operating Income for Q4 was $146 million, with a net reserve release of $60 million, while the Closed Block reported an adjusted operating loss of $114 million, primarily due to LTC [21][22] - The LTC segment experienced an adjusted operating loss of $326 million for the year, driven by a remeasurement loss and unfavorable actual-to-expected experience [23][24] Market Data and Key Metrics Changes - The CareScout Quality Network expanded to approximately 790 home care providers with over 1,000 locations, covering 97% of the U.S. population aged 65 and older, facilitating 925 matches in Q4 and ending the year with 3,255 matches, significantly exceeding targets [9][10] - CareScout launched its inaugural standalone LTC insurance product, Care Assurance, in 40 states, aiming for disciplined, scalable growth in the LTC insurance market [12] Company Strategy and Development Direction - Genworth's strategic priorities include creating shareholder value through Enact, advancing CareScout as a long-term growth strategy, and managing the closed block of business focused on existing policyholders [5][13] - The company is leveraging technology and AI to enhance customer service and operational efficiency, aiming to redefine long-term care delivery [8][17] Management's Comments on Operating Environment and Future Outlook - Management highlighted the growing bipartisan focus on healthcare affordability and the sustainability of public programs like Medicaid, emphasizing the need for flexible insurance and support services in the LTC market [16][17] - The company expects to continue scaling CareScout and anticipates significant value creation through its integrated approach to services and insurance [13][44] Other Important Information - Genworth ended Q4 with $234 million in cash and liquid assets, maintaining a disciplined capital structure and a cash interest coverage ratio of approximately 8 times [38][40] - The company secured $100 million in gross incremental LTC premium approvals in Q4, with average premium increases of 35.6% for the year [14] Q&A Session Summary Question: Importance of offering both services and insurance under CareScout - Management emphasized that CareScout is uniquely positioned to deliver the full value chain in the fragmented LTC market, helping families navigate care needs and providing affordable options through its Quality Network [46][47] Question: How CareScout supports consumers - Management noted that CareScout Services will assist the aging baby boomer population in determining care needs and finding providers, while CareScout Insurance will cater to their children and grandchildren, who will face the challenges of LTC costs [47][48]

Genworth Financial (NYSE:GNW) Q4 2025 Earnings call February 24, 2026 09:00 AM ET Speaker2Good morning, ladies and gentlemen, and welcome to Genworth Financial's fourth quarter 2025 earnings conference call. My name is Lisa, and I'll be your coordinator today. At this time, all participants are in a listen-only mode. We will facilitate a question and answer session towards the end of this conference call. As a reminder, the conference is being recorded for replay purposes. Also, we ask that you refrain from ...

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Non-GAAP and Other Items 4Q Investor Presentation Earnings Summary February 23, 2026 1 Cautionary Note Regarding Forward-Looking Statements This presentation 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 ...

Core Viewpoint - Genworth Financial (GNW) is identified as a unique value case for investors, particularly due to the structure of its holding company as of the start of 2026 [1] Company Analysis - The company operates in the micro-cap market, focusing on financial trends, profit growth, and institutional capital accumulation to identify high-growth, underanalyzed companies [1] - The investment strategy combines technical analysis with the CAN SLIM method, which is aimed at uncovering stocks with significant upside potential [1] - Key indicators prioritized include relative strength, trading volume shifts, and accelerating profit growth, which help in pinpointing stocks with the highest potential [1] Research Approach - The research approach integrates both fundamental and technical analysis, allowing for the identification of strong growth stocks before they gain widespread attention [1] - Writing for Seeking Alpha is part of the investment process, which helps refine strategies, test investment theses, and engage with the investor community [1] - The focus of the articles is on delivering in-depth company analyses, emphasizing stocks with strong growth trends, improving fundamentals, and technical setups that signal potential breakouts [1]

Financial Results Announcements - Enact Holdings, Inc. announced its financial results for the quarter ended December 31, 2025, on February 3, 2026[7] - Genworth Financial, Inc. will release its earnings for the quarter ended December 31, 2025, after market close on February 23, 2026[8] Conference Call - A conference call to discuss the quarterly results is scheduled for February 24, 2026, at 9:00 a.m. (ET)[8]

Core Insights - CareScout has expanded its service offerings nationwide, providing families with a personalized Care Plan created by licensed nurses and access to a credentialed network of home care providers through the CareScout Quality Network [1][2] Service Offerings - The new offerings aim to establish CareScout as a comprehensive platform for aging and long-term care, assisting families in planning, understanding, finding, and funding care with greater clarity [2] - CareScout's Care Plans are based on over 20 years of experience and more than one million nurse-led evaluations, ensuring professional guidance through direct interaction with licensed nurses [4] Care Plan Details - Each Care Plan includes a one-on-one evaluation lasting 45-60 minutes, available in-person or virtually, focusing on daily routines, functional abilities, cognitive changes, safety needs, and personal goals [4][5] - Families receive a customized Care Plan within five business days, which emphasizes understanding the individual behind the needs and provides credible, personalized support [5] Quality Network - The CareScout Quality Network offers families access to home care providers that meet strict credentialing standards and typically offer preferred pricing below market rates [6] - This network aims to enhance transparency and quality in the long-term care sector, helping families confidently identify high-quality home care providers [6][7] Unique Features - CareScout differentiates itself from online lead aggregators by prioritizing family control and providing support tailored to their needs, resulting in a more respectful and transparent experience [7] - The Care Plans include unbiased analysis of physical and cognitive abilities, personalized recommendations, local resource options, and actionable next steps to simplify complex decisions [8] Availability - Care Plans are available nationwide for a one-time fee, and CareScout does not charge families for access to the Quality Network [9]

Core Insights - The article emphasizes the importance of creating engaging and educational financial content for various audiences, particularly for financial advisors and investment firms [1] Group 1: Content Creation - The company specializes in producing written content in multiple formats, including articles, blogs, emails, and social media [1] - There is a focus on thematic investing, market events, and client education to make financial data relatable to everyday investors [1] - The use of empirical data and charts is highlighted as a method to create evidence-based narratives that effectively communicate financial concepts [1] Group 2: Market Analysis - The company expresses enthusiasm for analyzing various asset classes, including stocks, bonds, commodities, currencies, and cryptocurrencies [1] - Macro drivers of these asset classes are identified as key areas of interest for the company [1] - The content aims to provide insights into stock market sectors, ETFs, and economic data to inform investment decisions [1]

Capital Returns and Share Repurchases - Enact Holdings provided $110 million of capital returns to Genworth Holdings in Q3 2025, supporting strategic initiatives and share repurchases [294]. - Genworth Financial has repurchased $725 million worth of its common stock since the initial authorization of its share repurchase program in May 2022 [294]. - Genworth Financial executed $76 million of share repurchases during the third quarter of 2025, with a new share repurchase program authorized for up to $350 million [334]. Financial Performance - Total revenues for Q3 2025 were $1,935 million, a 3% increase from $1,880 million in Q3 2024 [312]. - Premiums earned in Q3 2025 were $886 million, up 1% from $874 million in Q3 2024 [312]. - Net investment gains increased by 50% to $99 million in Q3 2025, compared to $66 million in Q3 2024 [312]. - Net income available to common stockholders for Q3 2025 was $116 million, a 36% increase from $85 million in Q3 2024 [312]. - For the nine months ended September 30, 2025, total revenues were $5,517 million, a slight increase from $5,513 million in the same period of 2024 [314]. - Net investment income for the nine months ended September 30, 2025, decreased by 1% to $2,340 million from $2,367 million in 2024 [314]. - Income from continuing operations for Q3 2025 was $155 million, representing a 28% increase from $121 million in Q3 2024 [312]. - The provision for income taxes in Q3 2025 was $9 million, a significant decrease of 78% from $40 million in Q3 2024 [312]. - Total benefits and expenses for Q3 2025 were $1,771 million, a 3% increase from $1,719 million in Q3 2024 [312]. Long-Term Care Insurance - The long-term care insurance multi-year in-force rate action plan has achieved an estimated cumulative economic benefit of approximately $31.8 billion since 2012 [295]. - The liability for future policy benefits for the long-term care insurance business is $43.5 billion as of September 30, 2025, sensitive to interest rate movements [392]. - Legal settlements regarding premium increases for long-term care insurance policies covered approximately 70% of the long-term care insurance block, resulting in a favorable economic impact [398]. - Future approved rate actions are expected to partially offset the decline in renewal premiums as the block runs off [399]. - Premiums for the Long-Term Care Insurance segment increased by $16 million (3%) to $597 million in Q3 2025 compared to Q3 2024, driven by higher premiums from newly implemented in-force rate actions [400]. CareScout Services - CareScout Services expanded its network to over 700 home care providers with more than 950 locations nationwide, offering rates below the median cost of care [297]. - Genworth Financial acquired Seniorly on October 31, 2025, enhancing the CareScout Quality Network and expanding into the direct-to-consumer market [299]. - The CareScout Care Assurance product was launched in October 2025, approved in 37 states, featuring customizable coverage and access to the CareScout Quality Network [302]. - Genworth Financial plans to invest approximately $45 million to $50 million in CareScout Services for the full year 2025, excluding the Seniorly acquisition [301]. Ratings and Outlook - Moody's upgraded Genworth Holdings' senior unsecured debt rating to "Baa3" and Enact Mortgage Insurance Corporation's financial strength rating to "A2" in August 2025 [304]. - A.M. Best revised the outlook to positive for Genworth Life Insurance Company and affirmed the financial strength rating of "C++" in September 2025 [305]. - Genworth Financial anticipates that investments in CareScout Services and CareScout Insurance will drive sustainable future growth and maximize long-term shareholder value [303]. Investment and Assets - As of September 30, 2025, the consolidated risk-based capital ratio of U.S. domiciled life insurance subsidiaries was approximately 303%, down from 306% as of December 31, 2024 [331]. - Genworth Holdings had $254 million of unrestricted cash and cash equivalents as of September 30, 2025, including $145 million for future obligations [334]. - As of September 30, 2025, Enact had estimated available assets of $4,974 million against $3,070 million net required assets under PMIERs [349]. - Enact's risk-to-capital ratio was 10.2:1 as of September 30, 2025, down from 10.5:1 at the end of 2024 [348]. - The total cash, cash equivalents, and invested assets increased to $61,449 million as of September 30, 2025, up from $59,976 million at the end of 2024, reflecting a 2.5% growth [472]. Delinquencies and Loss Ratios - New primary delinquencies in Q3 2025 were 12,998, resulting in $79 million of loss expense, compared to 12,964 delinquencies and $75 million of loss expense in Q3 2024 [345]. - The delinquency rate for primary insurance increased to 2.45% as of September 30, 2025, compared to 2.17% in the prior year, attributed to new delinquencies exceeding cures and paid claims [379]. - The loss ratio for the nine months ended September 30, 2025, increased to 12% from 10% in 2024, largely due to lower reserve releases and higher new delinquencies [376]. Tax Rates - The effective tax rate for Q3 2025 was 22.1%, compared to 21.3% in Q3 2024 [360]. - The effective tax rate for the nine months ended September 30, 2025, was 21.8%, consistent with the U.S. corporate federal income tax rate [368]. - The effective tax rate increased to 38.9% for the three months ended September 30, 2025, compared to 22.7% for the same period in 2024 [441]. - The effective tax rate decreased to 23.5% from 23.9% year-over-year, primarily due to tax benefits from tax-favored items [452]. Corporate and Other - Total revenues for Corporate and Other increased by $9 million, a 150% increase year-over-year [453]. - Adjusted operating loss available to common stockholders for Corporate and Other decreased by $6 million, a 22% improvement compared to the previous year [453]. - Total revenues for the nine months ended September 30, 2025, decreased by $17 million, a 94% decline compared to the same period in 2024 [458].