Genworth(US:GNW)2025-11-06 21:21Capital Returns and Share Repurchases - Enact Holdings provided $110 million of capital returns to Genworth Holdings in Q3 2025, supporting strategic initiatives and share repurchases [294]. - Genworth Financial has repurchased $725 million worth of its common stock since the initial authorization of its share repurchase program in May 2022 [294]. - Genworth Financial executed $76 million of share repurchases during the third quarter of 2025, with a new share repurchase program authorized for up to $350 million [334]. Financial Performance - Total revenues for Q3 2025 were $1,935 million, a 3% increase from $1,880 million in Q3 2024 [312]. - Premiums earned in Q3 2025 were $886 million, up 1% from $874 million in Q3 2024 [312]. - Net investment gains increased by 50% to $99 million in Q3 2025, compared to $66 million in Q3 2024 [312]. - Net income available to common stockholders for Q3 2025 was $116 million, a 36% increase from $85 million in Q3 2024 [312]. - For the nine months ended September 30, 2025, total revenues were $5,517 million, a slight increase from $5,513 million in the same period of 2024 [314]. - Net investment income for the nine months ended September 30, 2025, decreased by 1% to $2,340 million from $2,367 million in 2024 [314]. - Income from continuing operations for Q3 2025 was $155 million, representing a 28% increase from $121 million in Q3 2024 [312]. - The provision for income taxes in Q3 2025 was $9 million, a significant decrease of 78% from $40 million in Q3 2024 [312]. - Total benefits and expenses for Q3 2025 were $1,771 million, a 3% increase from $1,719 million in Q3 2024 [312]. Long-Term Care Insurance - The long-term care insurance multi-year in-force rate action plan has achieved an estimated cumulative economic benefit of approximately $31.8 billion since 2012 [295]. - The liability for future policy benefits for the long-term care insurance business is $43.5 billion as of September 30, 2025, sensitive to interest rate movements [392]. - Legal settlements regarding premium increases for long-term care insurance policies covered approximately 70% of the long-term care insurance block, resulting in a favorable economic impact [398]. - Future approved rate actions are expected to partially offset the decline in renewal premiums as the block runs off [399]. - Premiums for the Long-Term Care Insurance segment increased by $16 million (3%) to $597 million in Q3 2025 compared to Q3 2024, driven by higher premiums from newly implemented in-force rate actions [400]. CareScout Services - CareScout Services expanded its network to over 700 home care providers with more than 950 locations nationwide, offering rates below the median cost of care [297]. - Genworth Financial acquired Seniorly on October 31, 2025, enhancing the CareScout Quality Network and expanding into the direct-to-consumer market [299]. - The CareScout Care Assurance product was launched in October 2025, approved in 37 states, featuring customizable coverage and access to the CareScout Quality Network [302]. - Genworth Financial plans to invest approximately $45 million to $50 million in CareScout Services for the full year 2025, excluding the Seniorly acquisition [301]. Ratings and Outlook - Moody's upgraded Genworth Holdings' senior unsecured debt rating to "Baa3" and Enact Mortgage Insurance Corporation's financial strength rating to "A2" in August 2025 [304]. - A.M. Best revised the outlook to positive for Genworth Life Insurance Company and affirmed the financial strength rating of "C++" in September 2025 [305]. - Genworth Financial anticipates that investments in CareScout Services and CareScout Insurance will drive sustainable future growth and maximize long-term shareholder value [303]. Investment and Assets - As of September 30, 2025, the consolidated risk-based capital ratio of U.S. domiciled life insurance subsidiaries was approximately 303%, down from 306% as of December 31, 2024 [331]. - Genworth Holdings had $254 million of unrestricted cash and cash equivalents as of September 30, 2025, including $145 million for future obligations [334]. - As of September 30, 2025, Enact had estimated available assets of $4,974 million against $3,070 million net required assets under PMIERs [349]. - Enact's risk-to-capital ratio was 10.2:1 as of September 30, 2025, down from 10.5:1 at the end of 2024 [348]. - The total cash, cash equivalents, and invested assets increased to $61,449 million as of September 30, 2025, up from $59,976 million at the end of 2024, reflecting a 2.5% growth [472]. Delinquencies and Loss Ratios - New primary delinquencies in Q3 2025 were 12,998, resulting in $79 million of loss expense, compared to 12,964 delinquencies and $75 million of loss expense in Q3 2024 [345]. - The delinquency rate for primary insurance increased to 2.45% as of September 30, 2025, compared to 2.17% in the prior year, attributed to new delinquencies exceeding cures and paid claims [379]. - The loss ratio for the nine months ended September 30, 2025, increased to 12% from 10% in 2024, largely due to lower reserve releases and higher new delinquencies [376]. Tax Rates - The effective tax rate for Q3 2025 was 22.1%, compared to 21.3% in Q3 2024 [360]. - The effective tax rate for the nine months ended September 30, 2025, was 21.8%, consistent with the U.S. corporate federal income tax rate [368]. - The effective tax rate increased to 38.9% for the three months ended September 30, 2025, compared to 22.7% for the same period in 2024 [441]. - The effective tax rate decreased to 23.5% from 23.9% year-over-year, primarily due to tax benefits from tax-favored items [452]. Corporate and Other - Total revenues for Corporate and Other increased by $9 million, a 150% increase year-over-year [453]. - Adjusted operating loss available to common stockholders for Corporate and Other decreased by $6 million, a 22% improvement compared to the previous year [453]. - Total revenues for the nine months ended September 30, 2025, decreased by $17 million, a 94% decline compared to the same period in 2024 [458].