Workflow
Genworth(GNW) - 2024 Q2 - Earnings Call Transcript
GNWGenworth(GNW)2024-08-01 16:12
Filings
Slide

Financial Data and Key Metrics Changes - Genworth reported net income of 76millionor76 million or 0.17 per share and adjusted operating income of 125millionor125 million or 0.28 per share for Q2 2024 [6][16] - Adjusted operating income was primarily driven by Enact, which contributed 165million,reflectinga13165 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 1million[8][16]BusinessLineDataandKeyMetricsChanges−Enact′sprimaryinsurancein−forceincreasedby31 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 138millioningrossincrementalpremiumsapproved,withanaveragepremiumincreaseof47138 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 171million,drivenbyLTCrateactions[8][23]−Theconsolidatedrisk−basedcapitalratioforGenworthLifeInsuranceCompanywas319171 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 63millioninQ22024[7][20]−Thecompanyrepurchasedapproximately63 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]