Earnings Summary February 18, 2025 1 Cautionary Note Regarding Forward-Looking Statements 4Q Investor Presentation 3 — Net loss1 of $1M, and adjusted operating income1,2 of $15M in the fourth quarter — Enact reported adjusted operating income of $137M1 in the fourth quarter; distributed $84M in capital returns to Genworth — Completed annual assumption updates with unfavorable impacts to adjusted operating income (loss) in LTC and Life and Annuities of $52M — U.S. life insurance companies' RBC3 ratio of 306% ...

Financial Results Announcements - Enact Holdings, Inc. announced its financial results for Q4 2024 on February 4, 2025[4] - Genworth Financial, Inc. will release its earnings for Q4 2024 after market close on February 18, 2025[5] Conference Call Information - A conference call to discuss the quarterly results is scheduled for February 19, 2025, at 9:00 a.m. ET[5]

Financial 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].

Financial Performance and Key Metrics - Genworth reported net income of $85 million or $0.19 per share and adjusted operating income of $48 million, $0.11 per share, with the U.S. life insurance segment contributing $148 million to adjusted operating income [8][9][10] - The liquidity position remains strong with cash and liquid assets of $369 million, including approximately $162 million in advanced cash payments [10][53] - The adjusted operating loss for the long-term care (LTC) insurance segment was $46 million, driven by a liability remeasurement loss [31][33] Business Line Performance - Enact delivered $148 million in adjusted operating income, a 10% year-over-year increase, with primary insurance in force growing 2% year-over-year to $268 billion [35][36] - The life insurance segment reported an adjusted operating loss of $40 million due to unfavorable mortality, partially offset by positive contributions from fixed and variable annuities [33][34] - The corporate and other segment reported a $27 million loss, primarily due to interest expenses and growth investments in CareScout [34] Market Data and Key Metrics - The U.S. life insurance companies reported an estimated pre-tax loss of $18 million in the third quarter, down from income in the prior quarter due to higher claims and unfavorable mortality [43] - Statutory income for the U.S. life insurance companies generated pre-tax income of $411 million year-to-date, with a risk-based capital ratio of 317% [44][45] Company Strategy and Industry Competition - The company is focused on three strategic priorities: creating shareholder value through Enact, maintaining self-sustaining customer-centric LTC businesses, and driving future growth through CareScout [11][13][17] - The MYRAP has secured $124 million in gross premium approvals with an average premium increase of 53%, contributing to the long-term sustainability of the legacy LTC business [14][38] - CareScout is expanding its network to cover 85% of the aged 65-plus population in the U.S. by the end of the year, with plans to introduce new offerings in 2025 [18][20][24] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the rising costs of long-term care and the need for public-private partnerships to address these challenges [25][26] - The company is optimistic about the growth potential of CareScout and plans to invest significantly in this area [21][24][93] - Management expects continued GAAP earnings volatility in LTC due to short-term results deviating from long-term assumptions [32][46] Other Important Information - The company has reduced its debt from $4.2 billion in 2013 to $821 million today, enhancing its financial flexibility [23] - The company plans to allocate between $160 million to $180 million to share repurchases in 2024, with a total of $503 million repurchased since May 2022 [55][56] Q&A Session Summary Question: AXA Santander lawsuit and potential use of proceeds - Management indicated that if they win the case, proceeds would likely be used to return capital to shareholders through share repurchase programs and invest in CareScout services [61][62] Question: CareScout revenue model beyond LTC claims savings - The revenue model involves a portion of savings from discounted care services being allocated to CareScout, with the remainder benefiting policyholders [64] Question: Clarification on CareScout coverage percentage - Coverage is defined by the presence of at least one care provider in the ZIP code where individuals aged 65 and older reside [66][67] Question: CareScout's impact on parent company finances - CareScout's expenses are currently reflected in the corporate segment, with revenues generated from savings for policyholders [78][79] Question: Current GLIC reserve margin - The statutory margin for GLIC is expected to remain in the $0.5 billion to $1 billion range [90]

Financial Performance - Total stockholders' equity for Genworth Financial, Inc. was $8,311 million as of September 30, 2024, compared to $8,459 million in the previous quarter[8] - Book value per share was $19.40, a slight decrease from $19.49 in the prior quarter[8] - Adjusted operating income for the third quarter of 2024 was reported at $25 million, reflecting a significant increase from a loss of $10 million in the same quarter last year[7] - The company reported a U.S. GAAP basis Return on Equity (ROE) of 3.3% for the third quarter of 2024, up from 3.0% in the previous quarter[8] - Total revenues for Q3 2024 were $1,880 million, an increase from $1,769 million in Q2 2024[10] - Net income available to common stockholders for Q3 2024 was $85 million, compared to $76 million in Q2 2024[10] - Basic earnings per share for Q3 2024 was $0.20, up from $0.18 in Q2 2024[10] - Adjusted operating income for Q3 2024 was $48 million, down from $125 million in Q2 2024 and $85 million in Q3 2023[11] - The company reported a loss from discontinued operations of $3 million in Q3 2024[10] - The company reported a total of $1,859 million in other liabilities, down from $1,973 million, representing a decrease of 5.8%[15] Insurance Segment Performance - New insurance written for the Enact segment was $3,200 million, representing a 15% increase compared to the previous quarter[7] - Insurance in-force for the Enact segment reached $50 billion, indicating a growth of 10% year-over-year[7] - The loss ratio for the Enact segment was reported at 25%, which is consistent with the previous quarter's performance[7] - Long-term care insurance segment reported premiums of $581 million in Q3 2024, up from $564 million in Q2 2024, and total revenues of $1.723 billion year-to-date[30] - The Long-Term Care Insurance segment reported an adjusted operating loss of $46 million in Q3 2024, compared to a loss of $29 million in Q2 2024[11] Investment Performance - Net investment income for Q3 2024 was $777 million, a decrease from $808 million in Q2 2024[10] - The company reported net investment gains of $17 million in Q3 2024, a significant recovery from losses of $66 million in Q2 2024[11] - The company reported a total of $32,539 million in public fixed maturity securities, a 5.5% increase from $30,851 million[40] - The total amount of securities due in one year or less was $1,311 million, representing 3% of total fixed maturity securities[42] - The annualized yield on fixed maturity securities - taxable was 4.6% in Q3 2024, compared to 4.7% in Q2 2024[43] Market Outlook and Strategy - The company plans to expand its market presence through strategic partnerships and new product offerings in the upcoming quarters[6] - Genworth is focusing on enhancing its technology capabilities to improve operational efficiency and customer experience[6] - The company anticipates a gradual recovery in the long-term care insurance market, projecting a 5% growth in premiums for the next fiscal year[6] Asset and Liability Management - Total assets as of September 30, 2024, were $90.76 billion, an increase from $87.54 billion as of June 30, 2024[12] - Total liabilities rose to $81,505 million, compared to $78,190 million in the previous quarter, marking an increase of 4.0%[15] - Future policy benefits amounted to $57,303 million, up from $53,774 million, indicating a growth of 6.0%[15] - Total accumulated other comprehensive income (loss) was $(1,871) million, compared to $(1,687) million in the previous quarter, indicating a worsening of 10.9%[15] Operational Efficiency - The company continues to focus on restructuring efforts, with expenses related to restructuring recorded at $11 million in Q3 2024[11] - The adjusted expense ratio for the third quarter of 2024 was 25%, a decrease from 27% in the second quarter of 2024[48] - The company’s operating return on equity (ROE) is defined as adjusted operating income divided by average ending stockholders' equity, excluding accumulated other comprehensive income[46]

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Genworth 兴。 | --- | --- | |-------------------------------|-------| | | | | | | | 2Q Investor | | | Presentation Earnings Summary | | | July 31, 2024 | | 2 Cautionary Note Regarding Forward-Looking Statements This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will" or words of si ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-32195 GENWORTH FINANCIAL, INC. (Exact name of registrant as specified in its charter) Delaware 80-0873306 (State or other ...

Financial Data and Key Metrics Changes - Genworth reported net income of $76 million or $0.17 per share and adjusted operating income of $125 million or $0.28 per share for Q2 2024 [6][16] - Adjusted operating income was primarily driven by Enact, which contributed $165 million, reflecting a 13% increase year-over-year [6][19] - The long-term care (LTC) segment reported an adjusted operating loss of $29 million, while life and annuities reported an adjusted operating loss of $1 million [8][16] Business Line Data and Key Metrics Changes - Enact's primary insurance in-force increased by 3% year-over-year to $266 billion, driven by new insurance written and elevated persistency [19] - The LTC segment's MYRAP achieved $138 million in gross incremental premiums approved, with an average premium increase of 47% [10][21] - Life insurance within the life and annuities segment reported an adjusted operating loss of $23 million, improved from the previous quarter [18] Market Data and Key Metrics Changes - The U.S. Life Insurance companies reported strong pre-tax income estimated at $171 million, driven by LTC rate actions [8][23] - The consolidated risk-based capital ratio for Genworth Life Insurance Company was 319% at the end of June, up from 314% at the end of March [24] Company Strategy and Development Direction - The company aims to maintain self-sustaining, customer-centric LTC life and annuity businesses, with a focus on the MYRAP to achieve breakeven [9][22] - Future growth is targeted through CareScout, with plans to expand the CareScout Quality Network to cover 80% to 85% of the age 65-plus population by year-end [11][32] - The company plans to reenter the market with new long-term care funding solutions in 2025, addressing unmet demand for improved LTC products [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing value creation from Enact and the stabilization of the LTC legacy block [16][30] - The company anticipates continued GAAP earnings pressure in the LTC segment due to short-term deviations from long-term assumptions [17] - Management highlighted the importance of the CareScout initiative in providing high-quality care at reduced costs, expecting revenue growth starting in 2025 [32] Other Important Information - Genworth received approximately $738 million in capital from Enact since its IPO, including $63 million in Q2 2024 [7][20] - The company repurchased approximately $36 million of shares in Q2 2024, with a total of $470 million repurchased since the program's inception [14][30] - The trial date for the case against Santander regarding payment protection insurance is set for March 2025, with potential recoveries for Genworth if AXA is successful [15] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with closing remarks from management [31][34]

Financial Performance - In Q2 2024, Genworth Financial reported total revenues of $1,769 million, a decrease from $1,864 million in Q1 2024[13]. - Net income available to common stockholders for Q2 2024 was $76 million, compared to $139 million in Q1 2024[13]. - The company experienced a net investment loss of $61 million in Q2 2024, contrasting with a gain of $49 million in Q1 2024[13]. - Total benefits and expenses for Q2 2024 were $1,626 million, slightly down from $1,628 million in Q1 2024[13]. - Income from continuing operations before income taxes was $143 million in Q2 2024, down from $236 million in Q1 2024[13]. - The diluted earnings per share for Q2 2024 was $0.17, compared to $0.31 in Q1 2024[13]. - The company reported benefits and other changes in policy reserves of $1,151 million in Q2 2024, compared to $1,203 million in Q1 2024[13]. - Net income available to common stockholders for Q2 2024 was $76 million, compared to $137 million in Q2 2023, reflecting a decrease of 44.6%[15]. - Adjusted operating income for Q2 2024 was $125 million, up from $85 million in Q1 2024, indicating a 47.1% increase[15]. - The company reported a basic earnings per share of $0.17 for Q2 2024, compared to $0.29 in Q2 2023, a decrease of 41.4%[15]. Assets and Liabilities - Total assets as of June 30, 2024, were $87.543 billion, a decrease from $90.817 billion as of December 31, 2023[16]. - Total liabilities decreased to $78.190 billion as of June 30, 2024, from $82.482 billion at the end of 2023, representing a reduction of 5.2%[19]. - Future policy benefits liabilities were $53.774 billion as of June 30, 2024, down from $57.655 billion at the end of 2023, a decline of 6.5%[19]. - Cash and cash equivalents stood at $1.932 billion as of June 30, 2024, slightly down from $2.215 billion at the end of 2023[16]. - Total investments were $58.359 billion as of June 30, 2024, a decrease from $59.751 billion at the end of 2023[16]. - Total assets as of June 30, 2024, amounted to $87,543 million, an increase from $89,192 million as of March 31, 2024[20][21]. - Total liabilities were reported at $78,190 million as of June 30, 2024, compared to $80,313 million as of March 31, 2024[20][21]. Insurance Segment Performance - New insurance written for the Enact segment was reported at $Z million, indicating the volume of new business generated during the quarter[7]. - The loss ratio for the Enact segment was reported at A%, providing insight into underwriting performance for the period[7]. - The Enact segment reported adjusted operating income of $165 million in Q2 2024, compared to $135 million in Q1 2024, a growth of 22.2%[15]. - The Long-Term Care Insurance segment reported an adjusted operating loss of $29 million in Q2 2024, compared to a profit of $3 million in Q1 2024[15]. Investment Performance - Net investment income for Q2 2024 was $808 million, an increase from $782 million in Q1 2024, totaling $1.590 billion for the first half of 2024[53]. - Gross investment income before expenses and fees reached $833 million in Q2 2024, compared to $805 million in Q1 2024, totaling $1.638 billion for the first half of 2024[53]. - The annualized yield for fixed maturity securities - taxable was 4.7% in Q2 2024, up from 4.5% in Q1 2024[53]. - Total net realized investment losses for Q2 2024 amounted to $(60) million, with a total of $(10) million for the first half of 2024[54]. - The net unrealized gains on equity securities still held were $12 million in Q2 2024, increasing to $44 million for the total period[54]. - The company reported net investment gains (losses), gross of $(61) million in Q2 2024, with a total of $(12) million for the first half of 2024[54]. Shareholder Equity - Total stockholders' equity for Genworth Financial, Inc. increased to $8,459 million as of June 30, 2024, compared to $8,006 million on March 31, 2024, reflecting a growth of 5.6%[9]. - Book value per share rose to $19.49 as of June 30, 2024, up from $18.21 as of March 31, 2024, representing an increase of 7.0%[9]. - The number of common shares outstanding decreased to 434.0 million as of June 30, 2024, down from 439.6 million as of March 31, 2024[9]. - The company’s total equity stood at $9,353 million as of June 30, 2024, down from $8,879 million as of March 31, 2024[20][21]. Operational Metrics - Management continues to focus on enhancing operational performance through strategic measures, including monitoring key performance indicators such as insurance in-force and risk in-force[7]. - The weighted-average common shares outstanding for diluted calculations were 440.7 million in Q2 2024, down from 450.3 million in Q1 2024[13]. - The expense ratio increased by five percentage points for the three months ended June 30, 2024[27]. - The primary delinquency rate improved to 1.96% in Q2 2024 from 2.01% in Q1 2024, indicating a decrease of 0.05 percentage points[31]. - The total number of primary delinquencies at the end of Q2 2024 was 19,051, a decrease from 20,432 in Q4 2023[31].