Genworth(US:GNW)2024-11-07 22:02Financial Performance - Total revenues for Q3 2024 were $1,880 million, an increase of 3% compared to $1,831 million in Q3 2023[178]. - Premiums decreased by 4% to $874 million in Q3 2024 from $915 million in Q3 2023[178]. - Net investment income fell by 3% to $777 million in Q3 2024, down from $801 million in Q3 2023[178]. - Income from continuing operations increased by 102% to $121 million in Q3 2024, compared to $60 million in Q3 2023[178]. - Net income for Q3 2024 was $118 million, a 97% increase from $60 million in Q3 2023[178]. - Total benefits and expenses decreased by 1% to $1,719 million in Q3 2024 from $1,741 million in Q3 2023[178]. - For the nine months ended September 30, 2024, total revenues were $5,513 million, a decrease of 1% from $5,577 million in the same period of 2023[179]. - Net income available to common stockholders for the nine months ended September 30, 2024, was $300 million, up 4% from $288 million in the same period of 2023[179]. - Adjusted operating income for the three months ended September 30, 2024, was $48 million, up from $42 million in the prior year, reflecting a 14% increase[185]. - The adjusted operating income for the nine months ended September 30, 2024, was $258 million, down from $271 million in the prior year, indicating a decrease of 5%[185]. Capital Management - Enact Holdings provided $81 million of capital returns to Genworth Holdings in Q3 2024, with expected total returns for 2024 between $245 million and $285 million[169]. - Genworth has repurchased $503 million worth of its common stock since the initiation of its share repurchase program in May 2022[169]. - Genworth Financial executed $135 million of share repurchases during the nine months ended September 30, 2024[197]. - Genworth Holdings received $205 million in capital returns from Enact Holdings during the nine months ended September 30, 2024, with expectations of total returns between $245 million and $285 million for the full year[293]. - Genworth Financial repurchased 21,551,602 shares at an average price of $6.26 per share for a total of $135 million during the nine months ended September 30, 2024[293]. Ratings and Outlook - Moody's affirmed Genworth Holdings' senior unsecured debt rating at "Ba1" with a positive outlook as of October 9, 2024[172]. - A.M. Best upgraded Genworth Financial's credit rating to "bb-" from "b+" with a stable outlook on August 28, 2024[173]. - Genworth Life Insurance Company and Genworth Life Insurance Company of New York maintained a financial strength rating of "C++" with a stable outlook[173]. Long-Term Care Insurance - Genworth achieved an estimated cumulative economic benefit of approximately $30 billion from approved rate actions in long-term care insurance since 2012[170]. - The company expects continued overall growth in new claims as policyholders reach their peak claim years, despite mixed experience in long-term care insurance[229]. - Legal settlements covering approximately 70% of the long-term care insurance block are expected to result in a net favorable economic impact, reducing tail risk on long-duration liabilities[234]. - The total liability for future policy benefits for long-term care insurance is $42.4 billion, sensitive to interest rate movements, which may cause volatility in reserve balances[231]. - Long-term care insurance premiums decreased by $40 million (6%) from $621 million in Q3 2023 to $581 million in Q3 2024[235]. - Total revenues for the Long-Term Care Insurance segment increased by $53 million (5%) from $1,082 million in Q3 2023 to $1,135 million in Q3 2024[235]. Investment Performance - Net investment income rose by 13% to $62 million in Q3 2024, compared to $55 million in Q3 2023, primarily due to higher investment yields[210]. - The company recorded $66 million in net investment gains for the three months ended September 30, 2024, compared to a net loss of $43 million in the same period last year[281]. - Net unrealized gains on limited partnerships increased by $41 million in the current year, driven by favorable private equity market performance[282]. - The company reported $10 million in net investment gains related to derivatives, a significant improvement from $28 million in net investment losses in the prior year[282]. Insurance Operations - The Long-Term Care Insurance segment reported an adjusted operating loss of $46 million for the three months ended September 30, 2024, an improvement from a loss of $71 million in the same period last year[185]. - Enact's primary persistency rate was 83%, contributing to insurance in-force growth despite a 6% decrease in new insurance written compared to the third quarter of 2023[192]. - The delinquency rate for primary insurance increased to 2.17% as of September 30, 2024, compared to 2.10% on December 31, 2023, and 1.97% on September 30, 2023[222]. - The primary insurance in-force for loans with a FICO score over 760 increased to $114,424 million in 2024 from $109,701 million in 2023[221]. Market Conditions - The unemployment rate remained flat at 4.1% in September 2024, with approximately 6.8 million unemployed Americans[202]. - The U.S. Federal Reserve decreased interest rates by 50 basis points in September 2024, with forecasts for additional decreases in Q4 2024[276]. - Credit spreads tightened during the third quarter of 2024, indicating strong overall credit market performance[276]. - The company continues to monitor changes in interest rates as part of its market risk assessment[300]. Cash Flow and Liquidity - Net cash inflows from operating activities decreased to $61 million in 2024 from $450 million in 2023, primarily due to higher benefit payments and lower premiums collected in the long-term care insurance business[291]. - Net cash inflows from investing activities fell to $641 million in 2024 compared to $913 million in 2023, mainly due to lower net sales and maturities of fixed maturity securities[291]. - Net cash outflows from financing activities improved to $(860) million in 2024 from $(1,170) million in 2023, driven by lower net withdrawals from investment contracts[291]. - As of September 30, 2024, Genworth Holdings had $369 million in unrestricted cash and cash equivalents, an increase from $350 million at the end of 2023[294].