Financial Data and Key Metrics Changes - U.S. GAAP net income for Q1 2022 was $149 million, while adjusted operating income was $131 million or $0.25 per share, compared to $163 million and $0.32 per share in the prior quarter [7][23] - The consolidated balance sheet of General Life Insurance Company (GLIC) showed capital and surplus of approximately $2.9 billion as of year-end 2021, up from $2.1 billion at the end of 2020 [8] - GLIC's risk-based capital (RBC) ratio was estimated at 296% as of March 31, 2022, an increase from 289% at year-end 2021 [8][39] Business Line Data and Key Metrics Changes - Enact, the mortgage insurance subsidiary, reported adjusted operating income of $135 million, contributing significantly to overall results [7][24] - The U.S. Life insurance segment reported an adjusted operating loss of $4 million, driven by an operating loss of $79 million in life insurance, partially offset by $59 million in long-term care (LTC) insurance [7][29] - LTC insurance adjusted operating income was $59 million, down from $190 million in the prior quarter, primarily due to a decline in variable investment income [29] Market Data and Key Metrics Changes - Enact's insurance in-force increased 10% year-over-year to $232 billion, driven by strong new insurance written and higher persistency [26] - The PMIER sufficiency ratio for Enact was 176%, indicating strong business results and capital credit from reinsurance transactions [27] Company Strategy and Development Direction - The company is focused on maximizing shareholder value through debt reduction and capital return strategies, including a new share repurchase program of up to $350 million [11][43] - Genworth aims to stabilize its legacy LTC portfolio while exploring new LTC products and services, with an emphasis on less capital-intensive offerings [18][19] - The multiyear rate action plan (MYRAP) has been effective in reducing the legacy LTC premium shortfall, achieving $101 million in annual premium rate increase approvals in Q1 2022 [14][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial position and ability to return capital to shareholders, citing improved cash flow and reduced debt [10][12] - The company anticipates that it could take five more years to reach economic breakeven on its legacy LTC blocks due to regulatory challenges [17] - Management highlighted the importance of navigating the complex caregiving market and the potential for significant demand for LTC services [47] Other Important Information - Genworth received a ratings upgrade from S&P in March 2022, reflecting substantial improvement in its credit profile [10][22] - The company plans to fund share repurchases from excess holding company cash, with the majority of activity expected after redeeming remaining debt [11][43] Q&A Session Summary Question: Addressable market and competition for LTC advice and service offerings - Management indicated that the addressable market for LTC services is significant, with approximately 50 million people needing help navigating caregiving challenges, and emphasized a focus on advice and counsel rather than traditional insurance products [47] Question: Holding company cash and expense trends - Management clarified that first-quarter expenses included employee benefit payments that would be reimbursed later in the year, and they increased cash flow forecasts due to positive performance [50]

Genworth Financial, Inc. (NYSE:GNW) Q4 2021 Earnings Conference Call February 2, 2022 9:00 AM ET Company Participants Tom McInerney - President & Chief Executive Officer Dan Sheehan - Chief Financial Officer & Chief Investment Officer Conference Call Participants Ryan Krueger - KBW Joshua Esterov - CreditSights Ryan Gilbert - BTIG Operator Good morning, ladies and gentlemen, and welcome to Genworth Financial's Fourth Quarter 2021 Earnings Conference Call. My name is Jennifer, and I will be your coordinator ...

Genworth Financial, Inc. (NYSE:GNW) Q3 2021 Earnings Conference Call November 3, 2021 9:00 AM ET Company Participants Tim Owens - VP of IR Tom McInerney - President and CEO Dan Sheehan - CFO and Chief Investment Officer Conference Call Participants Ryan Krueger - KBW Ryan Gilbert - BTIG Joshua Esterov - CreditSights Geoffrey Dunn - Dowling & Partners Operator Good morning, ladies and gentlemen, and welcome to Genworth Financial's Third Quarter 2021 Earnings Conference Call. My name is Katie, and I will be y ...

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis of financial performance, market risks, and internal controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements show decreased assets, improved net income, and reduced operating cash flow for the nine months ended September 30, 2021 Condensed Consolidated Balance Sheets Consolidated Balance Sheet Summary (in millions) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$99,875** | **$105,747** | | Total Investments | $72,718 | $74,701 | | Assets related to discontinued operations | $— | $2,817 | | **Total Liabilities** | **$83,823** | **$89,927** | | Long-term borrowings | $2,412 | $3,403 | | Liabilities related to discontinued operations | $36 | $2,370 | | **Total Equity** | **$16,052** | **$15,820** | Condensed Consolidated Statements of Income Consolidated Income Statement Summary (in millions, except per share data) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $2,070 | $2,318 | $6,096 | $6,130 | | **Income from continuing operations** | $306 | $402 | $725 | $397 | | **Net Income (Loss)** | $318 | $436 | $753 | $(54) | | **Net Income (Loss) available to common stockholders** | $314 | $418 | $741 | $(89) | | **Diluted EPS from continuing operations** | $0.59 | $0.79 | $1.40 | $0.78 | | **Diluted Net EPS** | $0.61 | $0.82 | $1.44 | $(0.17) | Condensed Consolidated Statements of Comprehensive Income Consolidated Comprehensive Income Summary (in millions) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (Loss)** | $318 | $436 | $753 | $(54) | | **Total Other Comprehensive Income (Loss)** | $(9) | $(293) | $(453) | $711 | | **Total Comprehensive Income** | $309 | $143 | $300 | $657 | Condensed Consolidated Statements of Changes in Equity Changes in Total Equity (in millions) | Metric | Nine Months Ended Sep 30, 2021 | | :--- | :--- | | **Balance as of Dec 31, 2020** | **$15,820** | | Initial sale of subsidiary shares to noncontrolling interests | $576 | | Sale of business that included noncontrolling interests | $(657) | | Net income | $753 | | Other comprehensive loss, net of taxes | $(453) | | Stock-based compensation and other | $13 | | **Balance as of Sep 30, 2021** | **$16,052** | Condensed Consolidated Statements of Cash Flows Consolidated Cash Flow Summary (in millions) | Cash Flow Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | **Net cash from operating activities** | **$290** | **$1,452** | | **Net cash from (used by) investing activities** | **$469** | **$(1,279)** | | **Net cash used by financing activities** | **$(1,478)** | **$(734)** | | Net change in cash, cash equivalents and restricted cash | $(719) | $(561) | | Cash, cash equivalents and restricted cash at end of period | $1,937 | $2,780 | Notes to Condensed Consolidated Financial Statements - The company operates through three segments: Enact (U.S. Mortgage Insurance), U.S. Life Insurance (long-term care, life insurance, fixed annuities), and Runoff (non-strategic products)[25](index=25&type=chunk) - The company completed the sale of its ownership in Genworth Mortgage Insurance Australia Limited in March 2021, which is now reported as discontinued operations[27](index=27&type=chunk) - Management believes current liquidity is sufficient to meet financial obligations for one year from the financial statement issuance date, citing proceeds from the Genworth Australia sale and the Enact Holdings IPO[31](index=31&type=chunk) - New accounting guidance for long-duration insurance contracts, effective January 1, 2023, is expected to have a significant impact on the consolidated financial statements and significantly reduce equity at transition[38](index=38&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=80&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strategic plans to improve liquidity and financial strength through debt reduction and segment performance, notably in Enact and U.S. Life Insurance Strategic Update and Executive Summary - The company is executing a strategic plan to raise liquidity, address debt maturities, and strengthen its financial position, with key actions including the minority IPO of Enact Holdings and the sale of Genworth Australia[277](index=277&type=chunk) - A primary goal is to reduce debt at Genworth Holdings to approximately **$1 billion** over time, with **$1.7 billion** of long-term debt as of September 30, 2021, and no maturities until August 2023[278](index=278&type=chunk) - Stabilizing the U.S. life insurance business remains a long-term goal, primarily through a multi-year long-term care insurance in-force rate action plan, achieving approximately **$16.3 billion** in net present value of approved rate increases since 2012[279](index=279&type=chunk) Financial Results Summary (in millions) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Income available to common stockholders | $314 | $418 | $741 | $(89) | | Adjusted Operating Income available to common stockholders | $239 | $125 | $601 | $122 | Segment Analysis: Enact - As of September 30, 2021, the Enact segment's PMIERs sufficiency ratio was **181%**, with **$2,287 million** in available assets above the required amount[286](index=286&type=chunk) Enact Segment Adjusted Operating Income (in millions) | Period | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Adjusted Operating Income | $134 | $141 | $395 | $286 | Enact Segment Key Metrics (in billions) | Metric | Sep 30, 2021 | Sep 30, 2020 | | :--- | :--- | :--- | | Primary insurance in-force | $222.5 | $203.1 | | Total risk in-force | $56.0 | $51.5 | Segment Analysis: U.S. Life Insurance - The U.S. Life Insurance business is impacted by a pattern of projected profits followed by projected losses in its long-term care insurance block, with **$1,120 million** accrued as of September 30, 2021[289](index=289&type=chunk) - The company received approvals for approximately **$323 million** of incremental annual premiums from its long-term care insurance in-force rate action plan during the first nine months of 2021[289](index=289&type=chunk) U.S. Life Insurance Segment Adjusted Operating Income (Loss) (in millions) | Business Line | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Long-term care insurance | $133 | $59 | $326 | $108 | | Life insurance | $(68) | $(69) | $(171) | $(227) | | Fixed annuities | $28 | $24 | $71 | $58 | | **Total U.S. Life Insurance** | **$93** | **$14** | **$226** | **$(61)** | Segment Analysis: Runoff Runoff Segment Adjusted Operating Income (in millions) | Period | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Adjusted Operating Income | $11 | $19 | $38 | $30 | - The decrease in Q3 2021 adjusted operating income was predominantly due to higher mortality in corporate-owned life insurance products and unfavorable equity market performance[489](index=489&type=chunk) Segment Analysis: Corporate and Other Activities Corporate and Other Adjusted Operating Income (Loss) (in millions) | Period | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Adjusted Operating Income (Loss) | $1 | $(49) | $(58) | $(133) | - The improvement in Q3 2021 was primarily related to lower interest expense and a tax benefit of **$21 million** from a reduction in uncertain tax positions[508](index=508&type=chunk) Investments and Derivative Instruments - As of September 30, 2021, the fixed maturity securities portfolio was **95%** investment grade and comprised **82%** of total invested assets and cash[522](index=522&type=chunk) Net Investment Income (in millions) | Period | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Investment Income | $859 | $820 | $2,504 | $2,381 | Net Investment Gains (Losses) (in millions) | Period | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Investment Gains (Losses) | $88 | $351 | $191 | $345 | Liquidity and Capital Resources - Genworth Holdings had **$635 million** of unrestricted cash, cash equivalents, and liquid assets as of September 30, 2021[576](index=576&type=chunk) - In 2021, Genworth Holdings redeemed its **7.625%** senior notes due September 2021 and its **7.20%** senior notes due February 2021[575](index=575&type=chunk) - The Board of Directors has suspended stockholder dividends and stock repurchases indefinitely[565](index=565&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=158&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risks, including interest rate, foreign currency, and equity price risks, since December 31, 2020 - There were no material changes in the company's market risks since December 31, 2020[603](index=603&type=chunk) [Controls and Procedures](index=158&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2021[604](index=604&type=chunk) - There were no changes in internal control over financial reporting during the third quarter of 2021 that have materially affected, or are reasonably likely to materially affect, internal controls[605](index=605&type=chunk) [PART II—OTHER INFORMATION](index=159&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and exhibits filed with the report [Legal Proceedings](index=159&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 in the financial statements for details on material pending litigation and regulatory matters - For a description of material pending litigation and regulatory matters, refer to Note 11 in the unaudited condensed consolidated financial statements[606](index=606&type=chunk) [Risk Factors](index=159&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2020 Annual Report on Form 10-K as of September 30, 2021 - There have been no material changes to the risk factors set forth in the company's 2020 Annual Report on Form 10-K as of September 30, 2021[607](index=607&type=chunk) [Exhibits](index=160&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL interactive data files - The exhibits filed with this report include certifications from the CEO (Thomas J. McInerney) and CFO (Daniel J. Sheehan IV), as well as XBRL data files[608](index=608&type=chunk)[609](index=609&type=chunk)