Core Viewpoint - Genworth Financial announced a new share repurchase program to buy back up to $350 million of outstanding common stock [1] Group 1: Share Repurchase Program - The company plans to repurchase shares at its discretion [1] - Following the announcement, shares decreased by 0.46% in post-market trading, settling at $8.66 [1]

Core Viewpoint - Genworth Financial has announced a new share repurchase authorization amounting to $350 million [1] Group 1 - The company is taking steps to enhance shareholder value through this share repurchase program [1]

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Genworth Financial, Inc. for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of income, comprehensive income, changes in equity, and cash flows, along with detailed notes explaining business operations, accounting policies, investment details, derivative instruments, fair value measurements, and other financial disclosures [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :----------------------------------- | :-------------------------- | :------------------ | | **Assets** | | | | Total investments | $58,868 million | $57,928 million | | Cash, cash equivalents and restricted cash | $1,797 million | $2,048 million | | Total assets | $87,336 million | $86,871 million | | **Liabilities** | | | | Future policy benefits | $54,111 million | $53,610 million | | Policyholder account balances | $14,163 million | $14,594 million | | Total liabilities | $77,557 million | $77,440 million | | **Equity** | | | | Total Genworth Financial, Inc.'s stockholders' equity | $8,788 million | $8,494 million | | Total equity | $9,779 million | $9,431 million | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $1,796 million | $1,769 million | $3,582 million | $3,633 million | | Total benefits and expenses | $1,671 million | $1,626 million | $3,331 million | $3,254 million | | Income from continuing operations before income taxes | $125 million | $143 million | $251 million | $379 million | | Provision for income taxes | $35 million | $32 million | $71 million | $98 million | | Income from continuing operations | $90 million | $111 million | $180 million | $281 million | | Loss from discontinued operations, net of taxes | $(7) million | $(1) million | $(12) million | $(2) million | | Net income | $83 million | $110 million | $168 million | $279 million | | Net income available to Genworth Financial, Inc.'s common stockholders | $51 million | $76 million | $105 million | $215 million | | Basic EPS (continuing operations) | $0.14 | $0.18 | $0.28 | $0.49 | | Diluted EPS (continuing operations) | $0.14 | $0.17 | $0.28 | $0.49 | | Basic EPS (net income) | $0.12 | $0.17 | $0.25 | $0.49 | | Diluted EPS (net income) | $0.12 | $0.17 | $0.25 | $0.48 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $83 million | $110 million | $168 million | $279 million | | Total other comprehensive income | $58 million | $407 million | $289 million | $867 million | | Total comprehensive income | $141 million | $517 million | $457 million | $1,146 million | | Total comprehensive income available to Genworth Financial, Inc.'s common stockholders | $100 million | $483 million | $375 million | $1,083 million | [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) | Metric | Balances as of March 31, 2025 | Balances as of June 30, 2025 | | :----------------------------------- | :---------------------------- | :--------------------------- | | Total Genworth Financial, Inc.'s stockholders' equity | $8,710 million | $8,788 million | | Noncontrolling interests | $971 million | $991 million | | Total equity | $9,681 million | $9,779 million | | Metric | Balances as of December 31, 2024 | Balances as of June 30, 2025 | | :----------------------------------- | :----------------------------- | :--------------------------- | | Total Genworth Financial, Inc.'s stockholders' equity | $8,494 million | $8,788 million | | Noncontrolling interests | $937 million | $991 million | | Total equity | $9,431 million | $9,779 million | - For the three months ended June 30, 2025, total comprehensive income was **$141 million**, with **$100 million** attributable to Genworth Financial, Inc.'s common stockholders. Treasury stock acquired in connection with share repurchases amounted to **$30 million**[15](index=15&type=chunk) - For the six months ended June 30, 2025, total comprehensive income was **$457 million**, with **$375 million** attributable to Genworth Financial, Inc.'s common stockholders. Treasury stock acquired in connection with share repurchases amounted to **$76 million**[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash from (used by) operating activities | $40 million | $(100) million | | Net cash from (used by) investing activities | $160 million | $401 million | | Net cash from (used by) financing activities | $(451) million | $(584) million | | Net change in cash, cash equivalents and restricted cash | $(251) million | $(283) million | | Cash, cash equivalents and restricted cash at end of period | $1,797 million | $1,932 million | [Note 1 — Business and Basis of Presentation](index=9&type=section&id=Note%201%20%E2%80%94%20Business%20and%20Basis%20of%20Presentation) Genworth Financial, Inc. operates through three reportable segments: Enact (private mortgage insurance), Long-Term Care Insurance, and Life and Annuities (servicing existing protection and retirement income products) - Genworth Financial, Inc. manages its business through three reportable segments: Enact (private mortgage insurance), Long-Term Care Insurance, and Life and Annuities (servicing existing products)[25](index=25&type=chunk)[27](index=27&type=chunk) - During the six months ended June 30, 2025, Genworth Financial repurchased **10,797,934 shares** of its common stock at an average price of **$6.95 per share**, totaling **$76 million**[30](index=30&type=chunk) - As of July 31, 2025, approximately **$70 million** remained available for repurchase under the existing share repurchase program[30](index=30&type=chunk) [Note 2 — Accounting Changes](index=10&type=section&id=Note%202%20%E2%80%94%20Accounting%20Changes) The FASB issued new accounting guidance in November 2024 requiring disaggregated expense disclosures, effective January 1, 2027, and in December 2023, new guidance to improve income tax disclosures, effective January 1, 2025 - New FASB guidance issued in November 2024 requires disaggregated disclosures of certain expense categories, effective January 1, 2027[31](index=31&type=chunk) - New FASB guidance issued in December 2023 improves income tax disclosures, effective January 1, 2025, expanding disclosures without impacting consolidated financial statements[32](index=32&type=chunk) [Note 3 — Earnings (Loss) Per Share](index=11&type=section&id=Note%203%20%E2%80%94%20Earnings%20(Loss)%20Per%20Share) Basic and diluted earnings per share calculations are provided for income from continuing operations, loss from discontinued operations, and net income for the three and six months ended June 30, 2025 and 2024 | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Weighted-average common shares (basic) | 413.2 million | 436.4 million | 415.7 million | 439.7 million | | Weighted-average common shares (diluted) | 417.5 million | 440.7 million | 420.2 million | 445.5 million | | Basic EPS (continuing operations) | $0.14 | $0.18 | $0.28 | $0.49 | | Diluted EPS (continuing operations) | $0.14 | $0.17 | $0.28 | $0.49 | | Basic EPS (net income) | $0.12 | $0.17 | $0.25 | $0.49 | | Diluted EPS (net income) | $0.12 | $0.17 | $0.25 | $0.48 | [Note 4 — Investments](index=12&type=section&id=Note%204%20%E2%80%94%20Investments) The company's investment portfolio generated $802 million in net investment income for the three months ended June 30, 2025, and $1,541 million for the six months ended June 30, 2025 | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net investment income | $802 million | $808 million | $1,541 million | $1,590 million | | Net investment gains (losses) | $(28) million | $(61) million | $(1) million | $(12) million | | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------------- | :------------ | :---------------- | | Amortized cost of fixed maturity securities | $48,684 million | $48,720 million | | Gross unrealized gains on fixed maturity securities | $685 million | $452 million | | Gross unrealized losses on fixed maturity securities | $(3,672) million | $(4,260) million | | Allowance for credit losses on fixed maturity securities | $(25) million | $(10) million | | Fair value of fixed maturity securities | $45,672 million | $44,902 million | - As of June 30, 2025, the allowance for credit losses on commercial mortgage loans increased to **$56 million** from **$39 million** as of December 31, 2024, primarily due to updates to the analytical model[67](index=67&type=chunk)[74](index=74&type=chunk) - During the three and six months ended June 30, 2025, one commercial mortgage loan in the office property type with an amortized cost of **$9 million** was modified due to the borrower experiencing financial difficulty. The modification extended the contractual term and increased the interest rate[71](index=71&type=chunk) [Note 5 — Derivative Instruments](index=27&type=section&id=Note%205%20%E2%80%94%20Derivative%20Instruments) Genworth uses derivative instruments to mitigate risks from fluctuations in interest rates, equity prices, and currency exchange rates | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Total derivative assets | $42 million | $56 million | | Total derivative liabilities | $1,040 million | $991 million | | Metric | December 31, 2024 | June 30, 2025 | | :----------------------------------- | :------------------ | :------------ | | Total derivatives (notional) | $13,746 million | $14,001 million | | Fixed indexed annuity embedded derivatives (policies) | 4,867 | 4,509 | | Indexed universal life embedded derivatives (policies) | 717 | 699 | | Classification of gain (loss) recognized in net income | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Equity index options | $5 million | $1 million | $1 million | $6 million | | Financial futures | $(50) million | $(15) million | $(17) million | $(79) million | | Forward bond purchase commitments | $(12) million | $(7) million | $(8) million | $(11) million | | Foreign currency forward contracts | $(24) million | $0 million | $(24) million | $0 million | | Fixed indexed annuity embedded derivatives | $(6) million | $(5) million | $(2) million | $(13) million | | Indexed universal life embedded derivatives | $0 million | $2 million | $1 million | $6 million | | Total derivatives not designated as hedges | $(87) million | $(24) million | $(49) million | $(91) million | [Note 6 — Fair Value of Financial Instruments](index=34&type=section&id=Note%206%20%E2%80%94%20Fair%20Value%20of%20Financial%20Instruments) The company measures various financial instruments at fair value, categorized into Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (significant unobservable inputs) | Asset Class | Total (June 30, 2025) | Level 1 | Level 2 | Level 3 | NAV (1) | | :----------------------------------- | :-------------------- | :------ | :------ | :------ | :------ | | Total fixed maturity securities | $45,672 million | $0 million | $42,783 million | $2,889 million | $0 million | | Equity securities | $516 million | $447 million | $28 million | $41 million | $0 million | | Limited partnerships | $2,637 million | $0 million | $0 million | $17 million | $2,620 million | | Total derivative assets | $42 million | $0 million | $19 million | $23 million | $0 million | | Separate account assets | $4,394 million | $4,394 million | $0 million | $0 million | $0 million | | **Total assets** | **$53,272 million** | **$4,841 million** | **$42,841 million** | **$2,970 million** | **$2,620 million** | | Liability Class | Total (June 30, 2025) | Level 1 | Level 2 | Level 3 | | :----------------------------------- | :-------------------- | :------ | :------ | :------ | | Fixed indexed annuity embedded derivatives | $144 million | $0 million | $0 million | $144 million | | Indexed universal life embedded derivatives | $13 million | $0 million | $0 million | $13 million | | Total derivative liabilities | $883 million | $0 million | $781 million | $102 million | | **Total liabilities** | **$1,040 million** | **$0 million** | **$781 million** | **$259 million** | | Asset Class (Level 3) | Fair value (June 30, 2025) | Unobservable input | Range | Weighted-average | | :----------------------------------- | :------------------------- | :----------------- | :---- | :--------------- | | U.S. corporate fixed maturity securities | $1,864 million | Credit spreads | 14bps - 239bps | 126bps | | Non-U.S. corporate fixed maturity securities | $645 million | Credit spreads | 66bps - 191bps | 113bps | | Equity index options | $17 million | Equity index volatility | 6% - 51% | 25% | | Forward bond purchase commitments | $6 million | Counterparty financing spreads | 17bps - 54bps | 31bps | | Net market risk benefits (variable annuities) | $104 million | Lapse rate | 2% - 9% | 5% | | | | Non-performance risk | 42bps - 83bps | 69bps | | | | Equity index volatility | 15% - 29% | 22% | | Liability Class (Level 3) | Fair value (June 30, 2025) | Unobservable input | Range | Weighted-average | | :----------------------------------- | :------------------------- | :------------------------- | :---------- | :--------------- | | Fixed indexed annuity embedded derivatives | $144 million | Expected future interest credited | 1% - 4% | 2% | | Indexed universal life embedded derivatives | $13 million | Expected future interest credited | 3% - 13% | 5% | | Fixed indexed annuities (MRBs) | $53 million | GMWB utilization rate | — % - 82% | 67% | | | | Non-performance risk (credit spreads) | 42bps - 83bps | 69bps | | | | Expected future interest credited | 1% - 4% | 2% | | Variable annuities (MRBs) | $342 million | Lapse rate | 2% - 11% | 5% | | | | GMWB utilization rate | 59% - 90% | 79% | | | | Non-performance risk (credit spreads) | 42bps - 83bps | 69bps | | | | Equity index volatility | 15% - 29% | 22% | | Forward bond purchase commitments | $102 million | Counterparty financing spreads | 23bps - 54bps | 44bps | [Note 7 — Deferred Acquisition Costs](index=55&type=section&id=Note%207%20%E2%80%94%20Deferred%20Acquisition%20Costs) Deferred acquisition costs (DAC) for the company's insurance products totaled $1,680 million as of June 30, 2025, down from $1,779 million as of December 31, 2024 | Segment/Product | Balance as of January 1, 2025 | Amortization (6 months ended June 30, 2025) | Balance as of June 30, 2025 | | :------------------------ | :---------------------------- | :------------------------------------------ | :--------------------------- | | Long term care insurance | $823 million | $(27) million | $796 million | | Life insurance | $812 million | $(61) million | $751 million | | Fixed annuities | $37 million | $(4) million | $33 million | | Variable annuities | $83 million | $(6) million | $77 million | | Enact segment | $24 million | $0 million | $23 million | | **Total deferred acquisition costs** | **$1,779 million** | **$(98) million** | **$1,680 million** | [Note 8 — Future Policy Benefits](index=56&type=section&id=Note%208%20%E2%80%94%20Future%20Policy%20Benefits) The total liability for future policy benefits was $54,111 million as of June 30, 2025, an increase from $53,610 million as of December 31, 2024 | Product | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Long-term care insurance | $41,800 million | $41,172 million | | Life insurance | $1,536 million | $1,564 million | | Fixed annuities | $10,609 million | $10,695 million | | Total future policy benefits | $54,111 million | $53,610 million | - For the six months ended June 30, 2025, long-term care insurance liability increased by **$16 million** due to unfavorable cash flow assumption updates (implementation timing of in-force rate actions) and by **$41 million** due to actual variances (higher benefit utilization), partially offset by a **$26 million** gain from a third-party reinsurance recapture[204](index=204&type=chunk) | Product | Weighted-average interest accretion (locked-in) rate (June 30, 2025) | Weighted-average current discount rate (June 30, 2025) | | :------------------------ | :--------------------------------------------------- | :------------------------------------- | | Long-term care insurance | 5.7% | 5.6% | | Life insurance | 5.8% | 5.1% | | Fixed annuities | 6.8% | 5.5% | [Note 9 — Policyholder Account Balances](index=61&type=section&id=Note%209%20%E2%80%94%20Policyholder%20Account%20Balances) Total policyholder account balances decreased to $14,163 million as of June 30, 2025, from $14,594 million as of December 31, 2024, primarily due to benefit payments, surrenders, and withdrawals in fixed annuity and universal/term universal life insurance products | Product | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Life insurance | $7,075 million | $7,235 million | | Fixed annuities | $3,520 million | $3,789 million | | Variable annuities | $443 million | $467 million | | Fixed indexed annuity embedded derivatives | $144 million | $155 million | | Indexed universal life embedded derivatives | $13 million | $15 million | | Additional insurance liabilities | $2,955 million | $2,920 million | | Total policyholder account balances | $14,163 million | $14,594 million | | Product | Net amount at risk (June 30, 2025) | Cash surrender value (June 30, 2025) | | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Life insurance | $40,583 million | $4,036 million | | Fixed annuities | $29 million | $2,689 million | | Variable annuities | $381 million | $443 million | [Note 10 — Additional Insurance Liabilities](index=64&type=section&id=Note%2010%20%E2%80%94%20Additional%20Insurance%20Liabilities) Additional insurance liabilities, primarily for universal and term universal life insurance products, increased to $2,955 million as of June 30, 2025, from $2,920 million at year-end 2024 | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Ending balance | $2,955 million | $2,920 million | | Weighted-average liability duration (years) | 17.4 | 17.8 | | Interest accretion rate | 3.3% | 3.4% | | Projected crediting rate | 3.8% | 3.8% | - For the six months ended June 30, 2025, additional insurance liabilities increased primarily due to unfavorable mortality experience[229](index=229&type=chunk) [Note 11 — Market Risk Benefits](index=65&type=section&id=Note%2011%20%E2%80%94%20Market%20Risk%20Benefits) Total market risk benefits (MRBs) net liability decreased to $395 million as of June 30, 2025, from $408 million as of December 31, 2024 | Product | Asset (June 30, 2025) | Liability (June 30, 2025) | Net liability (June 30, 2025) | | :------------------------ | :-------------------- | :---------------------- | :-------------------------- | | Fixed indexed annuities | $0 million | $53 million | $53 million | | Variable annuities | $58 million | $400 million | $342 million | | **Total market risk benefits** | **$58 million** | **$453 million** | **$395 million** | | Change Component (6 months ended June 30, 2025) | Fixed indexed annuities | Variable annuities | | :------------------------------------------------ | :---------------------- | :----------------- | | Interest accretion | $1 million | $9 million | | Attributed fees collected | $2 million | $18 million | | Benefit payments | $0 million | $(13) million | | Effect of changes in interest rates | $4 million | $29 million | | Effect of changes in equity markets | $0 million | $(56) million | | Actual policyholder behavior different from expected behavior | $(1) million | $(4) million | [Note 12 — Separate Accounts](index=66&type=section&id=Note%2012%20%E2%80%94%20Separate%20Accounts) Separate account liabilities, primarily from variable annuity products, decreased to $4,394 million as of June 30, 2025, from $4,438 million at year-end 2024 | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Beginning balance as of January 1 | $4,438 million | $4,509 million | | Premiums and deposits | $14 million | $29 million | | Surrenders and withdrawals | $(179) million | $(406) million | | Benefit payments | $(110) million | $(217) million | | Investment performance | $282 million | $631 million | | Ending balance | $4,394 million | $4,438 million | | Cash surrender value | $4,392 million | $4,436 million | | Asset Category | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Equity funds | $2,078 million | $2,087 million | | Balanced funds | $1,813 million | $1,834 million | | Bond funds | $301 million | $313 million | | Money market funds | $202 million | $204 million | | Total | $4,394 million | $4,438 million | [Note 13 — Liability for Policy and Contract Claims](index=67&type=section&id=Note%2013%20%E2%80%94%20Liability%20for%20Policy%20and%20Contract%20Claims) The total liability for policy and contract claims increased to $763 million as of June 30, 2025, from $670 million as of December 31, 2024 | Segment | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Enact segment | $552 million | $525 million | | Life and Annuities segment | $203 million | $139 million | | Other mortgage insurance business | $8 million | $6 million | | Total liability for policy and contract claims | $763 million | $670 million | - For the six months ended June 30, 2025, the Enact segment recorded reserve releases of **$95 million**, primarily due to favorable cure performance on delinquencies from early 2024 and prior[248](index=248&type=chunk) [Note 14 — Income Taxes](index=68&type=section&id=Note%2014%20%E2%80%94%20Income%20Taxes) The effective tax rate for the three and six months ended June 30, 2025, was 28.0% and 28.3%, respectively, higher than the statutory U.S. federal income tax rate of 21% | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Statutory U.S. federal income tax rate | 21.0% | 21.0% | 21.0% | 21.0% | | Effective rate | 28.0% | 22.4% | 28.3% | 25.9% | - The effective tax rate was above the statutory rate primarily due to tax expense on certain forward starting swap gains that are tax effected at the previously enacted federal income tax rate of **35%**[250](index=250&type=chunk) - The company utilizes the actual effective tax rate for interim reporting for its Long-Term Care Insurance and Life and Annuities segments, and the annualized projected effective tax rate for its Enact segment and Corporate and Other[253](index=253&type=chunk) [Note 15 — Segment Information](index=69&type=section&id=Note%2015%20%E2%80%94%20Segment%20Information) Genworth's reportable segments are Enact, Long-Term Care Insurance, and Life and Annuities, with performance evaluated based on adjusted operating income (loss) | Segment | Adjusted Operating Income (Loss) (3 months ended June 30, 2025) | Adjusted Operating Income (Loss) (3 months ended June 30, 2024) | | :----------------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Enact | $141 million | $165 million | | Long-Term Care Insurance | $(37) million | $(29) million | | Life and Annuities | $(7) million | $(1) million | | Total reportable segment adjusted operating income | $97 million | $135 million | | Segment | Adjusted Operating Income (Loss) (6 months ended June 30, 2025) | Adjusted Operating Income (Loss) (6 months ended June 30, 2024) | | :----------------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Enact | $278 million | $300 million | | Long-Term Care Insurance | $(67) million | $(26) million | | Life and Annuities | $(40) million | $(16) million | | Total reportable segment adjusted operating income | $171 million | $258 million | | Segment | Total Assets (June 30, 2025) | Total Assets (December 31, 2024) | | :----------------------------------- | :--------------------------- | :----------------------------- | | Enact | $6,777 million | $6,525 million | | Long-Term Care Insurance | $45,725 million | $44,877 million | | Life and Annuities | $33,355 million | $33,797 million | [Note 16 — Commitments and Contingencies](index=72&type=section&id=Note%2016%20%E2%80%94%20Commitments%20and%20Contingencies) The company faces various litigation and regulatory risks, including class action lawsuits related to cost of insurance charges, fraudulent transfer, ERISA fiduciary duties, and data security breaches (MOVEit Cybersecurity Incident) - Genworth is involved in several class action lawsuits, including TVPX ARS, INC. v. GLAIC (cost of insurance charges), Burkhart et al. v. Genworth Financial et al. (fraudulent transfer), Trauernicht et al v. Genworth Financial (ERISA fiduciary duties), and In Re MOVEit Customer Data Security Breach Litigation (data security)[274](index=274&type=chunk)[277](index=277&type=chunk)[280](index=280&type=chunk)[284](index=284&type=chunk) - In M/O Arbitration Between Blue Cross Blue Shield Nebraska and GLIC, the arbitration panel's final decision on May 19, 2025, led to a **$24 million** payment to BCBSNE and a **$50 million** release in insurance reserves, resulting in a pre-tax gain of **$26 million** for Genworth in Q2 2025[283](index=283&type=chunk) - Genworth has commitments to fund **$1,748 million** in limited partnership investments, **$394 million** in private placement investments, **$122 million** of bank loan investments, and **$20 million** in commercial mortgage loan investments as of June 30, 2025[54](index=54&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[191](index=191&type=chunk)[527](index=527&type=chunk) - Genworth provided AXA a guarantee up to **£80 million** for PPI mis-selling losses. A favorable U.K. High Court judgment on July 25, 2025, against Santander could entitle Genworth to recover approximately **$750 million**[292](index=292&type=chunk) [Note 17 — Changes in Accumulated Other Comprehensive Income (Loss)](index=78&type=section&id=Note%2017%20%E2%80%94%20Changes%20in%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Accumulated other comprehensive income (loss) (AOCI) for Genworth Financial, Inc. decreased to $(1,372) million as of June 30, 2025, from $(1,642) million as of January 1, 2025 | Component | Balances as of April 1, 2025 | Current period OCI (3 months ended June 30, 2025) | Balances as of June 30, 2025 | | :----------------------------------- | :--------------------------- | :------------------------------------------------ | :--------------------------- | | Net unrealized investment gains (losses) | $(2,660) million | $134 million | $(2,536) million | | Derivatives qualifying as hedges | $535 million | $(155) million | $380 million | | Change in discount rate used to measure future policy benefits | $704 million | $66 million | $770 million | | Total | $(1,421) million | $58 million | $(1,372) million | | Component | Balances as of January 1, 2025 | Current period OCI (6 months ended June 30, 2025) | Balances as of June 30, 2025 | | :----------------------------------- | :----------------------------- | :------------------------------------------------ | :--------------------------- | | Net unrealized investment gains (losses) | $(3,156) million | $640 million | $(2,536) million | | Derivatives qualifying as hedges | $492 million | $(112) million | $380 million | | Change in discount rate used to measure future policy benefits | $1,023 million | $(253) million | $770 million | | Total | $(1,642) million | $289 million | $(1,372) million | | Reclassification from AOCI (net of taxes) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net unrealized investment (gains) losses | $14 million | $15 million | $17 million | $32 million | | Derivatives qualifying as hedges | $(31) million | $(34) million | $(62) million | $(70) million | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=81&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Genworth Financial's financial condition and results of operations, highlighting strategic updates, consolidated financial performance, and detailed segment-level analysis [Cautionary note regarding forward-looking statements](index=81&type=section&id=Cautionary%20note%20regarding%20forward-looking%20statements) - The report contains forward-looking statements regarding future business and financial performance, including potential dividends, share repurchases, long-term care insurance rate actions, CareScout growth initiatives, and the AXA/Santander litigation[304](index=304&type=chunk) - These statements are subject to inherent uncertainties, risks, and changes in circumstances due to global political, economic, inflation, business, competitive, market, and regulatory factors[305](index=305&type=chunk) [Overview](index=83&type=section&id=Overview) - Genworth Financial offers mortgage and long-term care insurance products through its principal insurance subsidiaries[310](index=310&type=chunk) - The company reports business results through three segments: Enact (private mortgage insurance), Long-Term Care Insurance, and Life and Annuities (servicing existing products)[311](index=311&type=chunk) - Genworth Financial maintains control of Enact Holdings, a public company, through an indirect majority voting interest, consolidating it as the Enact segment[313](index=313&type=chunk) [Strategic Update](index=83&type=section&id=Strategic%20Update) - Genworth Holdings received **$94 million** in capital returns from Enact Holdings in Q2 2025, funding strategic initiatives, including CareScout products and services, share repurchases, and opportunistic debt reduction[314](index=314&type=chunk) - The estimated cumulative economic benefit of approved long-term care insurance rate actions since 2012 through Q2 2025 was approximately **$31.6 billion** on a net present value basis[315](index=315&type=chunk) - CareScout Services expanded its network to nearly **650 home care providers** and launched Care Plans, with planned investments of **$45 million to $50 million** for full year 2025[318](index=318&type=chunk) - CareScout Care Assurance, an individual long-term care insurance product, was approved in **29 jurisdictions** as of June 30, 2025, with a planned capital contribution of **$85 million** to CareScout Insurance for full year 2025[319](index=319&type=chunk) [Creating shareholder value](index=83&type=section&id=Creating%20shareholder%20value) - Enact Holdings provided **$94 million** of capital returns to Genworth Holdings in the second quarter of 2025, supporting strategic initiatives and share repurchases[314](index=314&type=chunk) - Since May 2022 through July 31, 2025, Genworth Financial repurchased **$630 million** worth of its common stock[314](index=314&type=chunk) [Legacy businesses](index=83&type=section&id=Legacy%20businesses) - The company continues to pursue its multi-year in-force rate action plan for long-term care insurance, achieving an estimated cumulative economic benefit of approximately **$31.6 billion** (net present value) of approved rate actions since 2012 through Q2 2025[315](index=315&type=chunk) [CareScout growth initiatives](index=84&type=section&id=CareScout%20growth%20initiatives) - CareScout Services increased its network to nearly **650 home care providers** nationwide, with most offering rates below the median cost of care, and launched 'Care Plans' for virtual care evaluations[318](index=318&type=chunk) - Planned investment in CareScout Services for full year 2025 is approximately **$45 million to $50 million**[318](index=318&type=chunk) - CareScout Care Assurance, an individual long-term care insurance product, was approved by **29 jurisdictions** as of June 30, 2025, with a planned launch later this year[319](index=319&type=chunk) - A capital contribution of **$85 million** is planned for CareScout Insurance subsidiary for full year 2025 to meet regulatory capital requirements, an increase from the previously planned **$75 million**[319](index=319&type=chunk) [Financial Strength and Credit Ratings](index=84&type=section&id=Financial%20Strength%20and%20Credit%20Ratings) - There were no changes in the financial strength ratings of the principal insurance subsidiaries or the credit ratings of Genworth Financial and Genworth Holdings subsequent to February 28, 2025[321](index=321&type=chunk) [Our Financial Information](index=85&type=section&id=Our%20Financial%20Information) - Revenues primarily consist of premiums, net investment income, net investment gains (losses), and policy fees and other income[324](index=324&type=chunk) - Expenses primarily consist of benefits and other changes in policy reserves, liability remeasurement (gains) losses, changes in fair value of market risk benefits and associated hedges, interest credited, acquisition and operating expenses, amortization of deferred acquisition costs and intangibles, and interest expense[324](index=324&type=chunk) [Revenues and expenses](index=85&type=section&id=Revenues%20and%20expenses) - Revenues are primarily derived from premiums, net investment income, net investment gains (losses), and policy fees and other income[324](index=324&type=chunk) - Expenses include benefits and other changes in policy reserves, liability remeasurement (gains) losses, changes in fair value of market risk benefits and associated hedges, interest credited, acquisition and operating expenses, amortization of deferred acquisition costs and intangibles, and interest expense[324](index=324&type=chunk) [Consolidated Results of Operations](index=86&type=section&id=Consolidated%20Results%20of%20Operations) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change (2025 vs. 2024) | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :---------------------- | | Total revenues | $1,796 million | $1,769 million | $27 million (2%) | | Total benefits and expenses | $1,671 million | $1,626 million | $45 million (3%) | | Income from continuing operations before income taxes | $125 million | $143 million | $(18) million (-13%) | | Net income available to Genworth Financial, Inc.'s common stockholders | $51 million | $76 million | $(25) million (-33%) | | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change (2025 vs. 2024) | | :------------------------------------------------- | :----------------------------- | :----------------------------- | :---------------------- | | Total revenues | $3,582 million | $3,633 million | $(51) million (-1%) | | Total benefits and expenses | $3,331 million | $3,254 million | $77 million (2%) | | Income from continuing operations before income taxes | $251 million | $379 million | $(128) million (-34%) | | Net income available to Genworth Financial, Inc.'s common stockholders | $105 million | $215 million | $(110) million (-51%) | [Use of non-GAAP measures](index=87&type=section&id=Use%20of%20non-GAAP%20measures) - Adjusted operating income (loss) is a non-GAAP financial measure used by the chief operating decision maker to assess performance and allocate resources, as it minimizes the impact of macroeconomic volatility[330](index=330&type=chunk)[332](index=332&type=chunk) - Adjusted operating income (loss) excludes after-tax effects of 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 business sales, early extinguishment of debt, restructuring costs, and infrequent non-operating items[332](index=332&type=chunk) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income available to Genworth Financial, Inc.'s common stockholders | $51 million | $76 million | $105 million | $215 million | | Income from continuing operations available to Genworth Financial, Inc.'s common stockholders | $58 million | $77 million | $117 million | $217 million | | Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | $68 million | $125 million | $119 million | $210 million | [Earnings per share](index=90&type=section&id=Earnings%20per%20share) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS (continuing operations) | $0.14 | $0.18 | $0.28 | $0.49 | | Diluted EPS (continuing operations) | $0.14 | $0.17 | $0.28 | $0.49 | | Basic EPS (net income) | $0.12 | $0.17 | $0.25 | $0.49 | | Diluted EPS (net income) | $0.12 | $0.17 | $0.25 | $0.48 | | Basic EPS (adjusted operating income) | $0.16 | $0.29 | $0.29 | $0.48 | | Diluted EPS (adjusted operating income) | $0.16 | $0.28 | $0.28 | $0.47 | | Weighted-average common shares outstanding (basic) | 413.2 million | 436.4 million | 415.7 million | 439.7 million | | Weighted-average common shares outstanding (diluted) | 417.5 million | 440.7 million | 420.2 million | 445.5 million | [Executive Summary of Consolidated Financial Results](index=91&type=section&id=Executive%20Summary%20of%20Consolidated%20Financial%20Results) For the three months ended June 30, 2025, net income was $51 million (down from $76 million YoY) and adjusted operating income was $68 million (down from $125 million YoY) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $51 million | $76 million | $105 million | $215 million | | Adjusted operating income | $68 million | $125 million | $119 million | $210 million | - Enact segment's adjusted operating income decreased primarily due to a lower reserve release and higher new delinquencies, partially offset by higher net investment income[343](index=343&type=chunk)[344](index=344&type=chunk) - Long-Term Care Insurance segment's adjusted operating loss increased due to non-recurring net insurance recoveries in the prior year and a higher remeasurement loss, partially offset by higher limited partnership income[343](index=343&type=chunk)[344](index=344&type=chunk) - Life and Annuities segment's adjusted operating loss increased due to block runoff and unfavorable mortality, and lower net spread income[343](index=343&type=chunk)[344](index=344&type=chunk) [Significant Developments and Key Highlights](index=93&type=section&id=Significant%20Developments%20and%20Key%20Highlights) - Enact's primary persistency rate was **82%** in Q2 2025, and new insurance written decreased **3% YoY**. Enact recorded a pre-tax reserve release of **$48 million** in Q2 2025, down from **$77 million** in Q2 2024[351](index=351&type=chunk) - Enact's PMIERs sufficiency ratio was **165%** (**$1,961 million** above requirements) as of June 30, 2025. Enact Holdings authorized a new **$350 million** share repurchase program on April 30, 2025[351](index=351&type=chunk) - The estimated cumulative economic benefit of approved long-term care insurance rate actions since 2012 through Q2 2025 was approximately **$31.6 billion** (net present value)[347](index=347&type=chunk) - The consolidated risk-based capital ratio of U.S. life insurance subsidiaries was approximately **304%** as of June 30, 2025, a slight decrease from **306%** at December 31, 2024[348](index=348&type=chunk) - Genworth Holdings had **$248 million** of unrestricted cash and cash equivalents as of June 30, 2025, and received **$94 million** in capital returns from Enact Holdings during Q2 2025. Genworth Financial executed **$30 million** in share repurchases during Q2 2025[352](index=352&type=chunk) [Results of Operations and Selected Financial and Operating Performance Measures by Segment](index=93&type=section&id=Results%20of%20Operations%20and%20Selected%20Financial%20and%20Operating%20Performance%20Measures%20by%20Segment) This section provides a detailed breakdown of the financial performance and key operating metrics for each of Genworth's reportable segments: Enact, Long-Term Care Insurance, and Life and Annuities [Enact segment](index=93&type=section&id=Enact%20segment) Enact's adjusted operating income decreased by 15% for the three months and 7% for the six months ended June 30, 2025, primarily due to lower reserve releases and higher new delinquencies, partially offset by increased net investment income | Metric | 3 months ended June 30, 2025 | 3 months ended June 30, 2024 | 6 months ended June 30, 2025 | 6 months ended June 30, 2024 | | :------------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Adjusted operating income | $141 million | $165 million | $278 million | $300 million | | Premiums | $245 million | $244 million | $490 million | $485 million | | Net investment income | $66 million | $59 million | $129 million | $116 million | | Benefits and other changes in policy reserves | $25 million | $(17) million | $56 million | $3 million | | Loss ratio | 10% | (7)% | 11% | 1% | | Expense ratio | 22% | 28% | 21% | 25% | - Enact's adjusted operating income decreased primarily due to a lower reserve release (**$48 million** in Q2 2025 vs. **$77 million** in Q2 2024) and higher new delinquencies (**11,567** in Q2 2025 vs. **10,461** in Q2 2024)[95](index=95&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) | Metric | June 30, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------ | | Primary insurance in-force | $269,754 million | $266,060 million | | Total risk in-force | $70,455 million | $68,943 million | | New insurance written (3 months) | $13,254 million | $13,619 million | | New insurance written (6 months) | $23,072 million | $24,145 million | | Primary persistency rate (Q2) | 82% | 83% | | Delinquency rate | 2.32% | 1.96% | - Enact's PMIERs sufficiency ratio was **165%** or **$1,961 million** above the requirements as of June 30, 2025[365](index=365&type=chunk) - Enact Holdings authorized a new share repurchase program of up to **$350 million** on April 30, 2025[367](index=367&type=chunk) [Long-Term Care Insurance segment](index=105&type=section&id=Long-Term%20Care%20Insurance%20segment) The Long-Term Care Insurance segment's adjusted operating loss increased to $(37) million for the three months and $(67) million for the six months ended June 30, 2025 | Metric | 3 months ended June 30, 2025 | 3 months ended June 30, 2024 | 6 months ended June 30, 2025 | 6 months ended June 30, 2024 | | :------------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Adjusted operating loss | $(37) million | $(29) million | $(67) million | $(26) million | | Premiums | $578 million | $564 million | $1,149 million | $1,142 million | | Net investment income | $516 million | $494 million | $967 million | $958 million | | Liability remeasurement (gains) losses | $50 million | $43 million | $32 million | $27 million | | Acquisition and operating expenses, net of deferrals | $115 million | $82 million | $224 million | $184 million | - The adjusted operating loss increased primarily due to non-recurring net insurance recoveries of **$19 million** in the prior year and a higher remeasurement loss in the current year, partially offset by higher limited partnership income and a **$26 million** gain from a third-party reinsurance recapture[107](index=107&type=chunk)[109](index=109&type=chunk)[283](index=283&type=chunk) - Premiums increased due to **$29 million** (3 months) and **$54 million** (6 months) from newly implemented in-force rate actions, partially offset by lower renewal premiums from prior benefit reduction elections and policy terminations[107](index=107&type=chunk)[109](index=109&type=chunk) | Metric | 3 months ended June 30, 2025 | 3 months ended June 30, 2024 | 6 months ended June 30, 2025 | 6 months ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cash flow assumption updates | $8 million | $(24) million | $7 million | $(26) million | | Actual variances from expected experience | $42 million | $67 million | $25 million | $53 million | | Total liability remeasurement (gains) losses | $50 million | $43 million | $32 million | $27 million | - The estimated cumulative economic benefit of approved rate actions since 2012 through Q2 2025 was approximately **$31.6 billion** on a net present value basis[347](index=347&type=chunk)[437](index=437&type=chunk) [Life and Annuities segment](index=111&type=section&id=Life%20and%20Annuities%20segment) The Life and Annuities segment reported an adjusted operating loss of $(7) million for the three months and $(40) million for the six months ended June 30, 2025 | Metric | 3 months ended June 30, 2025 | 3 months ended June 30, 2024 | 6 months ended June 30, 2025 | 6 months ended June 30, 2024 | | :------------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Adjusted operating loss | $(7) million | $(1) million | $(40) million | $(16) million | | Premiums | $39 million | $44 million | $83 million | $97 million | | Net investment income | $216 million | $250 million | $436 million | $504 million | | Policy fees and other income | $156 million | $164 million | $312 million | $322 million | | Benefits and other changes in policy reserves | $220 million | $237 million | $464 million | $487 million | | Liability remeasurement (gains) losses | $10 million | $(4) million | $32 million | $4 million | | Interest credited | $94 million | $125 million | $193 million | $250 million | - The adjusted operating loss in life insurance products decreased by **$3 million** for the three months ended June 30, 2025, due to a non-recurring legal settlement accrual in the prior year, but increased by **$8 million** for the six months due to block runoff and unfavorable mortality[114](index=114&type=chunk)[117](index=117&type=chunk) - Adjusted operating income in fixed and variable annuities decreased primarily from unfavorable mortality and lower net spread income due to block runoff[114](index=114&type=chunk)[117](index=117&type=chunk) - Net investment income decreased primarily from lower policy loan rates in corporate-owned life insurance products and lower average invested assets in fixed annuity products[114](index=114&type=chunk)[117](index=117&type=chunk) [Corporate and Other](index=119&type=section&id=Corporate%20and%20Other) The Corporate and Other segment's adjusted operating loss increased to $(29) million for the three months and $(52) million for the six months ended June 30, 2025 | Metric | 3 months ended June 30, 2025 | 3 months ended June 30, 2024 | 6 months ended June 30, 2025 | 6 months ended June 30, 2024 | | :------------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Adjusted operating loss | $(29) million | $(10) million | $(52) million | $(48) million | | Net investment income | $4 million | $5 million | $9 million | $12 million | | Net investment gains (losses) | $(28) million | $(2) million | $(28) million | $(6) million | | Acquisition and operating expenses, net of deferrals | $29 million | $22 million | $48 million | $51 million | | Interest expense | $14 million | $17 million | $28 million | $34 million | - The adjusted operating loss increased primarily from higher expenses related to CareScout growth initiatives and lower net investment income, partially offset by lower interest expense[119](index=119&type=chunk)[120](index=120&type=chunk) [Investments and Derivative Instruments](index=121&type=section&id=Investments%20and%20Derivative%20Instruments) The investment portfolio was impacted by a steepening U.S. Treasury yield curve and widening credit spreads in Q2 2025 - The U.S. Treasury yield curve steepened in Q2 2025, with short-term yields decreasing and 30-year yields increasing. Credit spreads widened initially but tightened by quarter-end[486](index=486&type=chunk) | Metric | 3 months ended June 30, 2025 | 3 months ended June 30, 2024 | 6 months ended June 30, 2025 | 6 months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net investment income | $802 million | $808 million | $1,541 million | $1,590 million | | Net investment gains (losses) | $(28) million | $(61) million | $(1) million | $(12) million | | Asset Category | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Total cash, cash equivalents and invested assets | $60,665 million | $59,976 million | | Public fixed maturity securities | $31,077 million | $30,650 million | | Private fixed maturity securities | $14,595 million | $14,252 million | | Limited partnerships | $3,337 million | $3,142 million | | Derivatives | $42 million | $56 million | - The notional value of derivatives increased to **$14,001 million** as of June 30, 2025, primarily due to additions of foreign currency forward contracts and forward bond purchase commitments[502](index=502&type=chunk) [Consolidated Balance Sheets](index=126&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased by $465 million to $87,336 million as of June 30, 2025, driven by increases in fixed maturity securities and limited partnerships, partially offset by a decrease in cash | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Total assets | $87,336 million | $86,871 million | | Total liabilities | $77,557 million | $77,440 million | | Total equity | $9,779 million | $9,431 million | - Invested assets increased by **$940 million**, primarily from **$770 million** in fixed maturity securities (due to lower interest rates increasing fair value) and **$195 million** in limited partnerships[507](index=507&type=chunk) - Future policy benefits increased by **$501 million**, mainly due to a decrease in the single-A interest rate used to discount the liability[507](index=507&type=chunk) - Unrealized gains (losses) on investments increased total equity by **$620 million**, while derivatives qualifying as hedges decreased total equity by **$112 million**[507](index=507&type=chunk) [Liquidity and Capital Resources](index=127&type=section&id=Liquidity%20and%20Capital%20Resources) Genworth's liquidity and capital resources are focused on generating cash flows, borrowing, and raising capital | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash from (used by) operating activities | $40 million | $(100) million | | Net cash from (used by) investing activities | $160 million | $401 million | | Net cash from (used by) financing activities | $(451) million | $(584) million | | Net increase (decrease) in cash and cash equivalents | $(251) million | $(283) million | - Genworth Holdings had **$248 million** of unrestricted cash and cash equivalents as of June 30, 2025, and aims to maintain a cash buffer of two times expected annual external debt interest payments[518](index=518&type=chunk)[519](index=519&type=chunk) - Genworth Holdings received **$170 million** of capital returns from Enact Holdings during the six months ended June 30, 2025, through share repurchases and quarterly dividends[515](index=515&type=chunk) - Genworth Financial repurchased **10,797,934 shares** of common stock for **$75 million** during the six months ended June 30, 2025, with approximately **$70 million** remaining under the program as of July 31, 2025[516](index=516&type=chunk) - Potential recoveries of approximately **$750 million** from the AXA/Santander litigation are expected to be deployed in line with capital allocation priorities: investing in CareScout growth, returning cash to shareholders via share repurchases, and opportunistically paying down debt[529](index=529&type=chunk) [Supplemental Condensed Consolidating Financial Information](index=131&type=section&id=Supplemental%20Condensed%20Consolidating%20Financial%20Information) - Genworth Financial provides a full and unconditional guarantee to the trustee and holders of Genworth Holdings' outstanding senior and subordinated notes[531](index=531&type=chunk) - The company elected to exclude summarized financial information for the issuer and guarantor of registered securities in accordance with Rule 13-01 of Regulation S-X, as their combined assets, liabilities, and results of operations are not material to the consolidated financial position[532](index=532&type=chunk) [PART II—OTHER INFORMATION](index=132&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=131&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section addresses the company's exposure to market risk, which includes potential losses from adverse changes in interest rates, equity prices, and foreign currency exchange rates - Market risk is the risk of loss from adverse changes in market rates and prices (interest rates, equity prices, foreign currency exchange rates)[533](index=533&type=chunk) - There were no material changes in the company's market risks since December 31, 2024[533](index=533&type=chunk) [Item 4. Controls and Procedures](index=131&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective - The company's disclosure controls and procedures were effective as of June 30, 2025[534](index=534&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[535](index=535&type=chunk) [Item 1. Legal Proceedings](index=132&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 16 in the financial statements for a detailed description of all material pending litigation and regulatory matters affecting the company - Material pending litigation and regulatory matters are described in Note 16 to the unaudited condensed consolidated financial statements[536](index=536&type=chunk) [Item 1A. Risk Factors](index=132&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K as of June 30, 2025 - No material changes to the risk factors set forth in the 2024 Annual Report on Form 10-K as of June 30, 2025[537](index=537&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=132&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the three months ended June 30, 2025, Genworth Financial repurchased 4,281,077 shares of its common stock at an average price of $7.06 per share | Period | Total number of shares purchased | Average price paid per share | Approximate dollar amount of shares that may yet be purchased under the program | | :----------------------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------- | | April 1, 2025 through April 30, 2025 | 1,422,395 | $7.03 | $100 million | | May 1, 2025 through May 31, 2025 | 1,441,909 | $6.94 | $90 million | | June 1, 2025 through June 30, 2025 | 1,416,773 | $7.06 | $80 million | | **Total** | **4,281,077** | | | [Item 5. Other Information](index=132&type=section&id=Item%205.%20Other%20Information) No directors or officers of Genworth adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No directors or officers adopted or terminated Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[539](index=539&type=chunk) [Item 6. Exhibits](index=133&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the 2025 Omnibus Incentive Plan, certifications from the CEO and CFO, and various Inline XBRL documents - Exhibits include the 2025 Genworth Financial, Inc. Omnibus Incentive Plan, Certifications of Thomas J. McInerney and Jerome T. Upton (pursuant to Sections 31.1, 31.2, 32.1, 32.2), and Inline XBRL documents (Instance, Schema, Calculation, Label, Presentation, Definition Linkbase Documents, and Cover Page Interactive Data File)[541](index=541&type=chunk) [Signatures](index=134&type=section&id=Signatures) The report was duly signed on behalf of Genworth Financial, Inc. by Darren W. Woodell, Vice President and Controller (Principal Accounting Officer), on July 31, 2025 - The report was signed by Darren W. Woodell, Vice President and Controller (Principal Accounting Officer) of Genworth Financial, Inc. on July 31, 2025[545](index=545&type=chunk)

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]

[Investor Letter](index=3&type=section&id=Investor%20Letter) Provides an introductory note to investors, directing them to the company's website for Q2 2025 earnings and call details [Investor Letter Content](index=3&type=section&id=Investor%20Letter%20Content) Directs investors to the company's website for Q2 2025 earnings results and provides details for the upcoming earnings call - Investors are directed to the company's website (https://investor.genworth.com) for additional information regarding Q2 2025 earnings results, including the accompanying press release and summary presentation[8](index=8&type=chunk) - Details for the Q2 2025 earnings call are provided, scheduled for July 31, 2025, at 9:00 a.m. (ET), accessible via telephone (888-208-1820 or 323-794-2110, conference ID 8808137) and webcast (http://investor.genworth.com)[9](index=9&type=chunk) [Use of Non-GAAP Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Measures) Explains the company's use of non-GAAP financial measures, specifically adjusted operating income (loss) and statutory accounting data [Adjusted Operating Income (Loss) Definition](index=4&type=section&id=Adjusted%20Operating%20Income%20(Loss)%20Definition) Defines 'adjusted operating income (loss)' as a key non-GAAP measure used by management to assess performance and allocate resources, excluding specific non-operating items - Management uses **'adjusted operating income (loss)'** as a key non-GAAP measure to evaluate performance and allocate resources, believing it more accurately reflects overall operating performance by minimizing macroeconomic volatility[11](index=11&type=chunk) - Adjusted operating income (loss) is defined as income (loss) from continuing operations, excluding after-tax effects of noncontrolling interests, net investment gains (losses), changes in fair value of market risk benefits, gains (losses) on business sales, gains (losses) on early extinguishment of debt, restructuring costs, and infrequent/unusual non-operating items[12](index=12&type=chunk) - The company's legacy U.S. life insurance subsidiaries (Long-Term Care Insurance and Life and Annuities segments) are managed on a standalone basis, with no capital allocated to them[11](index=11&type=chunk) [Statutory Accounting Data](index=4&type=section&id=Statutory%20Accounting%20Data) Presents supplemental statutory accounting data for GLIC and its subsidiaries, prepared using SAP, to measure statutory pre-tax earnings and capital adequacy - Supplemental statutory data for Genworth Life Insurance Company (GLIC) and its subsidiaries is presented, prepared using Statutory Accounting Principles (SAP)[16](index=16&type=chunk) - This statutory data includes the impact from in-force rate actions on pre-tax long-term care insurance statutory earnings, which management uses to assess statutory pre-tax earnings and capital adequacy[17](index=17&type=chunk) - SAP financial statements differ materially from U.S. GAAP due to methodological differences, and this supplemental data should not be viewed as an alternative to U.S. GAAP[16](index=16&type=chunk) [Results of Operations and Selected Operating Performance Measures](index=5&type=section&id=Results%20of%20Operations%20and%20Selected%20Operating%20Performance%20Measures) Details the company's operational results and key performance metrics, including tax allocation methods and segment-specific measures [Tax Allocation and Reporting](index=5&type=section&id=Tax%20Allocation%20and%20Reporting) Outlines the company's tax allocation methodology, applying a 21% U.S. corporate federal income tax rate with segment-specific adjustments and varying effective tax rate applications - Tax is allocated to businesses at a **21% U.S. corporate federal income tax rate**, with adjustments for each segment's unique tax attributes[20](index=20&type=chunk) - For the three months ended June 30, 2025, March 31, 2025, September 30, 2024, and June 30, 2024, the actual effective tax rate was used for Long-Term Care Insurance and Life and Annuities segments[21](index=21&type=chunk) - For the same periods, an annualized projected effective tax rate was used for the Enact segment and Corporate and Other[21](index=21&type=chunk) [Operating Performance Measures for Enact Segment](index=5&type=section&id=Operating%20Performance%20Measures%20for%20Enact%20Segment) Monitors the Enact segment's operating performance using key metrics like new insurance written, insurance in-force, risk in-force, and loss ratio to assess business volume and underwriting - Key operating performance measures for the Enact segment include **'new insurance written' (NIW)**, **'insurance in-force'**, **'risk in-force'**, and **'loss ratio'**[22](index=22&type=chunk) - NIW measures the volume of new mortgage insurance policies sold, while insurance in-force and risk in-force indicate the size of the business that will generate future revenues and profits[23](index=23&type=chunk)[24](index=24&type=chunk) - The loss ratio, calculated as benefits and other changes in policy reserves to net earned premiums, is used to measure underwriting performance[25](index=25&type=chunk) [Financial Highlights](index=6&type=section&id=Financial%20Highlights) Presents key financial data including balance sheet metrics, return on equity trends, and shares outstanding [Balance Sheet Data](index=6&type=section&id=Balance%20Sheet%20Data) Highlights Genworth Financial, Inc.'s stockholders' equity, excluding AOCI, remaining stable around **$10.1 billion**, with total equity increasing to **$8,788 million** by June 2025 Selected Balance Sheet Data (Amounts in millions, except per share data) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------------------------------- | :------------ | :------------- | :------------------ | :------------------- | :------------ | | Total Genworth Financial, Inc.'s stockholders' equity, excluding AOCI | $10,160 | $10,131 | $10,136 | $10,182 | $10,146 | | Total accumulated other comprehensive income (loss) | $(1,372) | $(1,421) | $(1,642) | $(1,871) | $(1,687) | | Total Genworth Financial, Inc.'s stockholders' equity | $8,788 | $8,710 | $8,494 | $8,311 | $8,459 | | Book value per share | $21.35 | $20.94 | $20.16 | $19.40 | $19.49 | | Book value per share, excluding AOCI | $24.68 | $24.36 | $24.05 | $23.77 | $23.38 | | Common shares outstanding | 411.7 | 415.9 | 421.4 | 428.4 | 434.0 | - Total accumulated other comprehensive income (loss) improved from **$(1,687) million** as of June 30, 2024, to **$(1,372) million** as of June 30, 2025, primarily due to changes in the discount rate for future policy benefits[29](index=29&type=chunk) [Return on Equity (ROE)](index=6&type=section&id=Return%20on%20Equity%20(ROE)) Details fluctuations in U.S. GAAP Basis ROE and Operating ROE, with Q2 2025 Operating ROE at **2.7%**, up from Q1 2025 Return on Equity (ROE) Trends | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------- | :------------ | :------------- | :------------------ | :------------------- | :------------ | | **Twelve Month Rolling Average ROE** | | | | | | | U.S. GAAP Basis ROE | 1.9% | 2.1% | 3.0% | 0.9% | 0.3% | | Operating ROE | 1.8% | 2.4% | 2.7% | 0.3% | 0.2% | | **Quarterly Average ROE** | | | | | | | U.S. GAAP Basis ROE | 2.0% | 2.1% | —% | 3.3% | 3.0% | | Operating ROE | 2.7% | 1.5% | 0.6% | 1.9% | 4.9% | [Shares Outstanding](index=6&type=section&id=Shares%20Outstanding) Reports weighted-average common shares for basic EPS at **413.2 million** for Q2 2025, with diluted shares slightly higher due to dilutive securities Weighted-Average Common Shares Outstanding (Millions) | Metric | Three months ended June 30, 2025 | Six months ended June 30, 2025 | | :-------------------------------------------------- | :------------------------------- | :----------------------------- | | Weighted-average common shares used in basic EPS | 413.2 | 415.7 | | Potentially dilutive securities | 4.3 | 4.5 | | Weighted-average common shares used in diluted EPS | 417.5 | 420.2 | [Consolidated Quarterly Results](index=7&type=section&id=Consolidated%20Quarterly%20Results) Provides a consolidated overview of quarterly financial performance, including net income, balance sheets, and segment-specific breakdowns [Consolidated Net Income (Loss) by Quarter](index=8&type=section&id=Consolidated%20Net%20Income%20(Loss)%20by%20Quarter) Reports Genworth Financial, Inc.'s Q2 2025 net income at **$83 million**, a slight decrease from Q1 2025 but an improvement year-over-year Consolidated Net Income (Loss) by Quarter (Amounts in millions, except per share amounts) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Premiums | $865 | $862 | $1,727 | $876 | $874 | $855 | $875 | $3,480 | | Net investment income | $802 | $739 | $1,541 | $793 | $777 | $808 | $782 | $3,160 | | Total revenues | $1,796 | $1,786 | $3,582 | $1,782 | $1,880 | $1,769 | $1,864 | $7,295 | | Total benefits and expenses | $1,671 | $1,660 | $3,331 | $1,727 | $1,719 | $1,626 | $1,628 | $6,700 | | Income from continuing operations before income taxes | $125 | $126 | $251 | $55 | $161 | $143 | $236 | $595 | | Net income | $83 | $85 | $168 | $30 | $118 | $110 | $169 | $427 | | Net income (loss) available to common stockholders | $51 | $54 | $105 | $(1) | $85 | $76 | $139 | $299 | | Basic EPS (Net income available to common stockholders) | $0.12 | $0.13 | $0.25 | $0.00 | $0.20 | $0.17 | $0.31 | $0.69 | - Net investment gains (losses) shifted from a gain of **$27 million** in Q1 2025 to a loss of **$(28) million** in Q2 2025[33](index=33&type=chunk) - Loss from discontinued operations, net of taxes, was **$(7) million** in Q2 2025, primarily related to legal costs from litigation involving the former lifestyle protection insurance business[33](index=33&type=chunk) [Reconciliation of Net Income (Loss) to Adjusted Operating Income](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20Operating%20Income) Details the reconciliation of net income to adjusted operating income, which increased to **$68 million** in Q2 2025 from **$51 million** in Q1 2025 Reconciliation of Net Income (Loss) to Adjusted Operating Income (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :------------------------------------------------------------------------------------------------ | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $51 | $54 | $105 | $(1) | $85 | $76 | $139 | $299 | | Income from continuing operations available to Genworth Financial, Inc.'s common stockholders | $58 | $59 | $117 | $4 | $88 | $77 | $140 | $309 | | Net investment (gains) losses, net (adjustment) | $27 | $(28) | $(1) | $39 | $(66) | $60 | $(50) | $(17) | | Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (adjustment) | $(15) | $19 | $4 | $(24) | $17 | $(10) | $(26) | $(43) | | Adjusted operating income | $68 | $51 | $119 | $15 | $48 | $125 | $85 | $273 | | Adjusted operating income per share (Basic) | $0.16 | $0.12 | $0.29 | $0.04 | $0.11 | $0.29 | $0.19 | $0.63 | Adjusted Operating Income (Loss) by Segment (Amounts in millions) | Segment | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :-------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Enact segment | $141 | $137 | $278 | $137 | $148 | $165 | $135 | $585 | | Long-Term Care Insurance | $(37) | $(30) | $(67) | $(104) | $(46) | $(29) | $3 | $(176) | | Life and Annuities segment | $(7) | $(33) | $(40) | $5 | $(27) | $(1) | $(15) | $(38) | | Corporate and Other | $(29) | $(23) | $(52) | $(23) | $(27) | $(10) | $(38) | $(98) | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) Reports total assets of **$87,336 million** and total liabilities of **$77,557 million** as of June 30, 2025, with stockholders' equity increasing to **$8,788 million** Consolidated Balance Sheet Highlights (Amounts in millions) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------------------- | :------------ | :------------- | :------------------ | :------------------- | :------------ | | **ASSETS** | | | | | | | Total investments | $58,868 | $58,694 | $57,928 | $60,520 | $58,359 | | Reinsurance recoverable, net | $17,639 | $17,719 | $17,655 | $18,599 | $17,713 | | Total assets | $87,336 | $87,256 | $86,871 | $90,760 | $87,543 | | **LIABILITIES AND EQUITY** | | | | | | | Future policy benefits | $54,111 | $54,158 | $53,610 | $57,303 | $53,774 | | Policyholder account balances | $14,163 | $14,447 | $14,594 | $14,864 | $15,047 | | Total liabilities | $77,557 | $77,575 | $77,440 | $81,505 | $78,190 | | Total Genworth Financial, Inc.'s stockholders' equity | $8,788 | $8,710 | $8,494 | $8,311 | $8,459 | | Noncontrolling interests | $991 | $971 | $937 | $944 | $894 | | Total equity | $9,779 | $9,681 | $9,431 | $9,255 | $9,353 | - Fixed maturity securities available-for-sale, at fair value, remained stable at approximately **$45.6 billion** in Q2 2025 and Q1 2025[39](index=39&type=chunk) - Accumulated other comprehensive income (loss) improved from **$(1,687) million** in Q2 2024 to **$(1,372) million** in Q2 2025, primarily due to a positive change in the discount rate used to measure future policy benefits[42](index=42&type=chunk) [Consolidated Balance Sheets by Segment](index=12&type=section&id=Consolidated%20Balance%20Sheets%20by%20Segment) Presents the consolidated balance sheet by segment, showing Long-Term Care Insurance with the largest assets and liabilities, and Enact with the highest allocated equity, excluding AOCI Consolidated Balance Sheet by Segment (June 30, 2025, Amounts in millions) | Metric | Enact | Long-Term Care Insurance | Life and Annuities | Corporate and Other | Total | | :---------------------------------------------------- | :---- | :----------------------- | :----------------- | :------------------ | :---- | | **ASSETS** | | | | | | | Cash and investments | $6,589 | $36,013 | $17,281 | $1,338 | $61,221 | | Total assets | $6,777 | $45,725 | $33,355 | $1,479 | $87,336 | | **LIABILITIES AND EQUITY** | | | | | | | Future policy benefits | $— | $41,800 | $12,311 | $— | $54,111 | | Total liabilities | $1,542 | $42,938 | $31,821 | $1,256 | $77,557 | | Allocated equity, excluding AOCI | $4,329 | $2,668 | $2,440 | $723 | $10,160 | | Total Genworth Financial, Inc.'s stockholders' equity | $4,244 | $2,787 | $1,534 | $223 | $8,788 | | Noncontrolling interests | $991 | $— | $— | $— | $991 | - The Long-Term Care Insurance segment accounts for the largest share of future policy benefits at **$41,800 million** as of June 30, 2025[45](index=45&type=chunk) - The Enact segment's total assets were **$6,777 million**, with **$6,589 million** in cash and investments, and **$991 million** in noncontrolling interests as of June 30, 2025[45](index=45&type=chunk) [Quarterly Results by Business](index=14&type=section&id=Quarterly%20Results%20by%20Business) Analyzes quarterly financial performance across individual business segments, including adjusted operating income and key operating metrics [Adjusted Operating Income and Operating Metrics—Enact Segment](index=15&type=section&id=Adjusted%20Operating%20Income%20and%20Operating%20Metrics%E2%80%94Enact%20Segment) Reports Enact segment's adjusted operating income at **$141 million** in Q2 2025, with Direct Primary New Insurance Written significantly increasing to **$13,254 million** and a **10%** loss ratio Enact Segment Adjusted Operating Income (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Premiums | $245 | $245 | $490 | $246 | $249 | $244 | $241 | $980 | | Net investment income | $66 | $63 | $129 | $62 | $62 | $59 | $57 | $240 | | Total revenues | $304 | $307 | $611 | $302 | $310 | $298 | $292 | $1,202 | | Total benefits and expenses | $90 | $95 | $185 | $94 | $81 | $63 | $86 | $324 | | Adjusted operating income | $141 | $137 | $278 | $137 | $148 | $165 | $135 | $585 | Enact Segment Key Metrics (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :------------------------------------ | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Direct Primary New Insurance Written | $13,254 | $9,818 | $23,072 | $13,266 | $13,591 | $13,619 | $10,526 | $51,002 | | Direct Primary Insurance In-Force | $269,754| $268,366| | $268,825| $268,003| $266,060| $263,645| | | Direct Primary Risk In-Force | $70,401 | $69,937 | | $69,985 | $69,611 | $68,878 | $67,950 | | | Loss Ratio | 10% | 12% | 11% | 10% | 5% | (7)% | 8% | 4% | | Available Assets Above PMIERs Requirements | $1,961 | $1,966 | | $2,052 | $2,190 | $2,057 | $1,883 | | | PMIERs Sufficiency Ratio | 165% | 165% | | 167% | 173% | 169% | 163% | | - Primary delinquencies decreased slightly from **22,349** in Q1 2025 to **22,118** in Q2 2025, while new delinquencies also saw a decrease from **12,237** to **11,567**[55](index=55&type=chunk) [Adjusted Operating Income (Loss) and Statutory Impact of In-Force Rate Actions—Long-Term Care Insurance Segment](index=18&type=section&id=Adjusted%20Operating%20Income%20(Loss)%20and%20Statutory%20Impact%20of%20In-Force%20Rate%20Actions%E2%80%94Long-Term%20Care%20Insurance%20Segment) Reports Long-Term Care Insurance segment's adjusted operating loss of **$(37) million** in Q2 2025, with statutory earnings from in-force rate actions at **$342 million** Long-Term Care Insurance Segment Adjusted Operating Income (Loss) (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Premiums | $578 | $571 | $1,149 | $587 | $581 | $564 | $578 | $2,310 | | Net investment income | $516 | $451 | $967 | $499 | $483 | $494 | $464 | $1,940 | | Total revenues | $1,119 | $1,051 | $2,170 | $1,065 | $1,135 | $1,011 | $1,105 | $4,316 | | Total benefits and expenses | $1,132 | $1,052 | $2,184 | $1,210 | $1,112 | $1,077 | $1,039 | $4,438 | | Adjusted operating income (loss) | $(37) | $(30) | $(67) | $(104) | $(46) | $(29) | $3 | $(176) | Statutory Impact of In-Force Rate Actions—Long-Term Care Insurance Segment (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :------------------------------------------ | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Premiums, premium tax, commissions and other expenses, net | $247 | $240 | $487 | $245 | $232 | $220 | $217 | $914 | | Reserve changes | $95 | $97 | $192 | $97 | $90 | $102 | $114 | $403 | | Statutory earnings from in-force rate actions | $342 | $340 | $682 | $355 | $410 | $445 | $462 | $1,672 | - Liability remeasurement (gains) losses were **$50 million** in Q2 2025, primarily due to actual variances from expected experience (**$42 million**)[60](index=60&type=chunk) [Adjusted Operating Income (Loss)—Life and Annuities Segment](index=21&type=section&id=Adjusted%20Operating%20Income%20(Loss)%E2%80%94Life%20and%20Annuities%20Segment) Reports Life and Annuities segment's adjusted operating loss of **$(7) million** in Q2 2025, a significant improvement from Q1 2025, with total revenues at **$394 million** Life and Annuities Segment Adjusted Operating Income (Loss) (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Premiums | $39 | $44 | $83 | $40 | $42 | $44 | $53 | $179 | | Net investment income | $216 | $220 | $436 | $227 | $228 | $250 | $254 | $959 | | Total revenues | $394 | $421 | $815 | $412 | $429 | $454 | $461 | $1,756 | | Total benefits and expenses | $406 | $481 | $887 | $390 | $486 | $449 | $459 | $1,784 | | Adjusted operating income (loss) | $(7) | $(33) | $(40) | $5 | $(27) | $(1) | $(15) | $(38) | - The segment's adjusted operating loss improved significantly from **$(33) million** in Q1 2025 to **$(7) million** in Q2 2025[68](index=68&type=chunk) - Liability remeasurement (gains) losses were **$10 million** in Q2 2025, primarily due to actual variances from expected experience[68](index=68&type=chunk) [Adjusted Operating Income (Loss)—Life and Annuities Segment—Life Insurance](index=22&type=section&id=Adjusted%20Operating%20Income%20(Loss)%E2%80%94Life%20and%20Annuities%20Segment%E2%80%94Life%20Insurance) Reports Life Insurance sub-segment's adjusted operating loss of **$(20) million** in Q2 2025, an improvement from Q1 2025, with total revenues at **$299 million** Life Insurance Adjusted Operating Income (Loss) (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Premiums | $39 | $44 | $83 | $40 | $42 | $44 | $53 | $179 | | Net investment income | $139 | $144 | $283 | $147 | $146 | $167 | $167 | $627 | | Total revenues | $299 | $317 | $616 | $309 | $321 | $352 | $354 | $1,336 | | Total benefits and expenses | $334 | $373 | $707 | $310 | $373 | $377 | $391 | $1,451 | | Adjusted operating income (loss) | $(20) | $(44) | $(64) | $2 | $(40) | $(23) | $(33) | $(94) | [Adjusted Operating Income—Life and Annuities Segment—Fixed Annuities](index=23&type=section&id=Adjusted%20Operating%20Income%E2%80%94Life%20and%20Annuities%20Segment%E2%80%94Fixed%20Annuities) Reports Fixed Annuities sub-segment's adjusted operating income of **$8 million** in Q2 2025, doubling from Q1 2025, with total revenues at **$63 million** Fixed Annuities Adjusted Operating Income (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Net investment income | $70 | $70 | $140 | $73 | $76 | $77 | $80 | $306 | | Total revenues | $63 | $73 | $136 | $70 | $75 | $70 | $73 | $288 | | Total benefits and expenses | $58 | $75 | $133 | $59 | $80 | $59 | $62 | $260 | | Adjusted operating income | $8 | $4 | $12 | $1 | $6 | $12 | $11 | $30 | [Adjusted Operating Income—Life and Annuities Segment—Variable Annuities](index=24&type=section&id=Adjusted%20Operating%20Income%E2%80%94Life%20and%20Annuities%20Segment%E2%80%94Variable%20Annuities) Reports Variable Annuities sub-segment's adjusted operating income of **$5 million** in Q2 2025, a decrease from Q1 2025, with total revenues at **$32 million** Variable Annuities Adjusted Operating Income (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Net investment income | $7 | $6 | $13 | $7 | $6 | $6 | $7 | $26 | | Policy fees and other income | $25 | $25 | $50 | $26 | $27 | $26 | $27 | $106 | | Total revenues | $32 | $31 | $63 | $33 | $33 | $32 | $34 | $132 | | Total benefits and expenses | $14 | $33 | $47 | $21 | $33 | $13 | $6 | $73 | | Adjusted operating income | $5 | $7 | $12 | $2 | $7 | $10 | $7 | $26 | [Adjusted Operating Loss—Corporate and Other](index=26&type=section&id=Adjusted%20Operating%20Loss%E2%80%94Corporate%20and%20Other) Reports Corporate and Other segment's adjusted operating loss of **$(29) million** in Q2 2025, an increase from Q1 2025, primarily due to net investment losses Corporate and Other Adjusted Operating Loss (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Premiums | $3 | $2 | $5 | $3 | $2 | $3 | $3 | $11 | | Net investment income | $4 | $5 | $9 | $5 | $4 | $5 | $7 | $21 | | Net investment gains (losses) | $(28) | $— | $(28) | $(5) | $— | $(2) | $(4) | $(11) | | Total revenues | $(21) | $7 | $(14) | $3 | $6 | $6 | $6 | $21 | | Total benefits and expenses | $43 | $32 | $75 | $33 | $40 | $37 | $44 | $154 | | Adjusted operating loss | $(29) | $(23) | $(52) | $(23) | $(27) | $(10) | $(38) | $(98) | - The segment includes inter-segment eliminations and results from other non-reportable businesses, such as CareScout and certain international businesses[78](index=78&type=chunk) [Additional Financial Data](index=27&type=section&id=Additional%20Financial%20Data) Provides supplementary financial information, including detailed investment portfolio composition, credit quality, and net investment income yields [Investments Summary](index=28&type=section&id=Investments%20Summary) Summarizes Genworth's investment portfolio as of June 30, 2025, with total invested assets and cash at **$60,665 million**, primarily in investment grade fixed maturity securities Composition of Investment Portfolio (June 30, 2025, Amounts in millions) | Investment Type | Carrying Amount | % of Total | | :------------------------------------------ | :-------------- | :--------- | | Public fixed maturity securities (Investment grade) | $26,326 | 43% | | Private fixed maturity securities (Investment grade) | $11,341 | 19% | | Commercial mortgage loans, net | $6,334 | 10% | | Policy loans | $2,366 | 4% | | Limited partnerships | $3,337 | 6% | | Cash, cash equivalents, restricted cash and short-term investments | $1,808 | 3% | | Other invested assets | $643 | 1% | | Total invested assets and cash | $60,665 | 100% | Public Fixed Maturity Securities—Credit Quality (June 30, 2025, Amounts in millions) | NRSRO Designation | Carrying Amount | % of Total | | :---------------- | :-------------- | :--------- | | AAA | $1,498 | 5% | | AA | $7,063 | 23% | | A | $9,031 | 29% | | BBB | $12,951 | 41% | | BB | $488 | 2% | | B | $46 | —% | | Total | $31,077 | 100% | Private Fixed Maturity Securities—Credit Quality (June 30, 2025, Amounts in millions) | NRSRO Designation | Carrying Amount | % of Total | | :---------------- | :-------------- | :--------- | | AAA | $652 | 4% | | AA | $1,580 | 11% | | A | $4,310 | 30% | | BBB | $7,118 | 49% | | BB | $828 | 6% | | B | $71 | —% | | CCC and lower | $21 | —% | | Not rated | $15 | —% | | Total | $14,595 | 100% | [Fixed Maturity Securities Summary](index=29&type=section&id=Fixed%20Maturity%20Securities%20Summary) Details fixed maturity securities as of June 30, 2025, with a total fair value of **$45,672 million**, predominantly U.S. corporate bonds and investment grade holdings Fixed Maturity Securities - Security Sector (June 30, 2025, Amounts in millions) | Security Sector | Fair Value | % of Total | | :------------------------------------------ | :--------- | :--------- | | U.S. government, agencies and government-sponsored enterprises | $3,527 | 8% | | State and political subdivisions | $2,135 | 5% | | Foreign government | $1,121 | 2% | | U.S. corporate | $27,154 | 59% | | Foreign corporate | $7,302 | 16% | | Residential mortgage-backed securities | $1,044 | 2% | | Commercial mortgage-backed securities | $1,340 | 3% | | Other asset-backed securities | $2,049 | 5% | | Total fixed maturity securities | $45,672 | 100% | Corporate Bond Holdings - Industry Sector (June 30, 2025, Amounts in millions) | Industry Sector | Investment Grade | Non-Investment Grade | Total | | :------------------------ | :--------------- | :------------------- | :---- | | Finance and insurance | $8,587 | $135 | $8,722 | | Utilities | $5,043 | $69 | $5,112 | | Energy | $3,265 | $129 | $3,394 | | Consumer - non-cyclical | $4,871 | $137 | $5,008 | | Consumer - cyclical | $1,403 | $249 | $1,652 | | Capital goods | $2,818 | $143 | $2,961 | | Industrial | $1,641 | $166 | $1,807 | | Technology and communications | $3,345 | $206 | $3,551 | | Transportation | $1,495 | $— | $1,495 | | Other | $697 | $57 | $754 | | Total | $33,165 | $1,291 | $34,456 | Fixed Maturity Securities - Contractual Maturity Dates (June 30, 2025, Amounts in millions) | Maturity Period | Fair Value | % of Total | | :-------------------------------- | :--------- | :--------- | | Due in one year or less | $1,481 | 3% | | Due after one year through five years | $8,573 | 19% | | Due after five years through ten years | $11,040 | 24% | | Due after ten years | $20,145 | 44% | | Mortgage and asset-backed securities | $4,433 | 10% | | Total | $45,672 | 100% | [U.S. GAAP Net Investment Income Yields](index=30&type=section&id=U.S.%20GAAP%20Net%20Investment%20Income%20Yields) Reports Genworth's Q2 2025 U.S. GAAP net investment income at **$802 million**, with an annualized yield of **5.0%**, and limited partnerships yielding **8.4%** U.S. GAAP Net Investment Income (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Fixed maturity securities - taxable | $570 | $559 | $1,129 | $556 | $557 | $571 | $554 | $2,238 | | Commercial mortgage loans | $72 | $73 | $145 | $73 | $74 | $75 | $75 | $297 | | Policy loans | $32 | $36 | $68 | $37 | $38 | $56 | $58 | $189 | | Limited partnerships | $69 | $8 | $77 | $60 | $36 | $36 | $20 | $152 | | Net investment income | $802 | $739 | $1,541 | $793 | $777 | $808 | $782 | $3,160 | Annualized Yields | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Fixed maturity securities - taxable | 4.7% | 4.6% | 4.6% | 4.6% | 4.6% | 4.7% | 4.5% | 4.6% | | Commercial mortgage loans | 4.6% | 4.6% | 4.6% | 4.5% | 4.5% | 4.5% | 4.4% | 4.5% | | Policy loans | 5.5% | 6.2% | 5.8% | 6.4% | 6.5% | 9.8% | 10.5% | 8.3% | | Limited partnerships | 8.4% | 1.0% | 4.8% | 7.7% | 4.7% | 4.9% | 2.8% | 5.1% | | Net investment income | 5.0% | 4.6% | 4.8% | 5.0% | 4.9% | 5.0% | 4.9% | 4.9% | - Yields are annualized and calculated as net investment income as a percentage of average quarterly asset carrying values, excluding unrealized fair value adjustments for fixed maturity securities and derivatives[88](index=88&type=chunk) [Net Investment Gains (Losses)—Detail](index=31&type=section&id=Net%20Investment%20Gains%20(Losses)%E2%80%94Detail) Details Genworth's Q2 2025 net investment losses of **$(28) million**, a shift from Q1 2025 gains, driven by realized losses on securities and derivatives Net Investment Gains (Losses)—Detail (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Total net realized investment gains (losses) | $(14) | $(3) | $(17) | $— | $(7) | $(19) | $(22) | $(48) | | Net change in allowance for credit losses on available-for-sale fixed maturity securities | $(11) | $(4) | $(15) | $(10) | $— | $7 | $— | $(3) | | Net unrealized gains (losses) on equity securities still held | $32 | $(14) | $18 | $17 | $22 | $12 | $32 | $83 | | Net unrealized gains (losses) on limited partnerships | $25 | $38 | $63 | $(3) | $55 | $(52) | $43 | $43 | | Derivative instruments | $(36) | $6 | $(30) | $(21) | $10 | $(8) | $1 | $(18) | | Net investment gains (losses), gross | $(28) | $27 | $(1) | $(41) | $66 | $(61) | $49 | $13 | - Realized losses on U.S. corporate fixed maturity securities were **$(15) million** in Q2 2025[91](index=91&type=chunk) - Net change in allowance for credit losses on available-for-sale fixed maturity securities was **$(11) million** in Q2 2025[91](index=91&type=chunk) [Reconciliations of Non-GAAP Measures](index=32&type=section&id=Reconciliations%20of%20Non-GAAP%20Measures) Provides detailed reconciliations for non-GAAP financial measures, including Operating ROE, consolidated expense ratio, and core investment yield [Reconciliation of Operating ROE](index=33&type=section&id=Reconciliation%20of%20Operating%20ROE) Reconciles Operating ROE, which was **1.8%** for the twelve months ended June 30, 2025, and **2.7%** for Q2 2025 on an annualized basis Twelve Month Rolling Average ROE | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------------------------------------------------------------------ | :------------ | :------------- | :------------------ | :------------------- | :------------ | | Net income available to Genworth Financial, Inc.'s common stockholders for the twelve months ended | $189 | $214 | $299 | $88 | $32 | | Adjusted operating income for the twelve months ended | $182 | $239 | $273 | $28 | $22 | | U.S. GAAP Basis ROE | 1.9% | 2.1% | 3.0% | 0.9% | 0.3% | | Operating ROE | 1.8% | 2.4% | 2.7% | 0.3% | 0.2% | Quarterly Average ROE | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------------------------------------------------------------------ | :------------ | :------------- | :------------------ | :------------------- | :------------ | | Net income (loss) available to Genworth Financial, Inc.'s common stockholders for the period ended | $51 | $54 | $(1) | $85 | $76 | | Adjusted operating income for the period ended | $68 | $51 | $15 | $48 | $125 | | Annualized U.S. GAAP Quarterly Basis ROE | 2.0% | 2.1% | —% | 3.3% | 3.0% | | Annualized Operating Quarterly Basis ROE | 2.7% | 2.0% | 0.6% | 1.9% | 4.9% | - Operating ROE is a non-GAAP measure that management believes enhances understanding of capital deployment efficiency, but it is not a substitute for U.S. GAAP net income (loss) ROE[95](index=95&type=chunk) [Reconciliation of Consolidated Expense Ratio](index=34&type=section&id=Reconciliation%20of%20Consolidated%20Expense%20Ratio) Reconciles the consolidated expense ratio, showing a GAAP Basis Expense Ratio of **29%** and an Adjusted Expense Ratio of **24%** for Q2 2025 Consolidated Expense Ratio Reconciliation (Amounts in millions) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Acquisition and operating expenses, net of deferrals | $249 | $236 | $485 | $253 | $259 | $229 | $236 | $977 | | Premiums | $865 | $862 | $1,727 | $876 | $874 | $855 | $875 | $3,480 | | GAAP Basis Expense Ratio | 29% | 27% | 28% | 29% | 30% | 27% | 27% | 28% | | Adjusted acquisition and operating expenses, net of deferrals | $249 | $236 | $485 | $255 | $261 | $244 | $241 | $1,001 | | Adjusted revenues | $1,022 | $1,020 | $2,042 | $1,030 | $1,037 | $1,022 | $1,033 | $4,122 | | Adjusted expense ratio | 24% | 23% | 24% | 25% | 25% | 24% | 23% | 24% | - The adjusted expense ratio is a non-GAAP measure used to enhance understanding of operating performance by highlighting underlying business activity and profitability drivers[100](index=100&type=chunk) [Reconciliation of Reported Yield to Core Yield](index=35&type=section&id=Reconciliation%20of%20Reported%20Yield%20to%20Core%20Yield) Reconciles Reported Yield to Core Yield, with Q2 2025 Reported Yield at **5.04%** and Core Yield at **5.00%**, adjusting for non-core investment items Reconciliation of Reported Yield to Core Yield (Amounts in billions for assets, millions for income) | Metric | 2Q 2025 | 1Q 2025 | Total 2025 YTD | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | Total 2024 | | :---------------------------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------ | :------ | :--------- | | Reported - Total Invested Assets and Cash | $60.7 | $60.6 | $60.7 | $60.0 | $62.6 | $60.3 | $61.0 | $60.0 | | Average Invested Assets and Cash Used in Reported and Core Yield Calculation | $63.6 | $63.7 | $63.7 | $63.9 | $64.0 | $64.0 | $64.3 | $64.1 | | Reported - Net Investment Income | $802 | $739 | $1,541 | $793 | $777 | $808 | $782 | $3,160 | | Core Net Investment Income | $796 | $735 | $1,531 | $788 | $772 | $803 | $779 | $3,142 | | Reported Yield | 5.04% | 4.64% | 4.84% | 4.97% | 4.86% | 5.04% | 4.87% | 4.93% | | Core Yield | 5.00% | 4.62% | 4.81% | 4.93% | 4.82% | 5.02% | 4.85% | 4.91% | - Adjustments to reconcile reported yield to core yield include subtracting bond calls and commercial mortgage loan prepayments, and other non-core items like cost basis adjustments on structured securities[104](index=104&type=chunk)[106](index=106&type=chunk) - Core yield is a non-GAAP measure that management believes enhances understanding of the investment portfolio's underlying performance[105](index=105&type=chunk)

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]