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Mar 31
Genworth Q1 2025 Earnings Report
Reported results for the quarter ended March 31, 2025
Key Takeaways
Genworth Financial reported net income of $54 million and adjusted operating income of $51 million for the first quarter of 2025. The results were driven by strong performance in the Enact segment, while the Long-Term Care Insurance and Life and Annuities segments reported adjusted operating losses.
Net income was $54 million, or $0.13 per diluted share.
Adjusted operating income was $51 million, or $0.12 per diluted share.
Enact reported adjusted operating income of $137 million and distributed $76 million in capital returns to Genworth.
Holding company cash and liquid assets were $211 million at quarter-end.
Genworth
Genworth
Genworth Revenue by Segment
Revenue by Segment
Enact Revenue
CapyFin.comLong-Term Care Insurance Premiums Revenue
CapyFin.comLife and Annuities Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
Genworth is focused on executing across its strategic priorities, including delivering value through Enact, ensuring self-sustainability of legacy insurance companies, and scaling CareScout. The company plans to continue share repurchases and Enact announced an increased quarterly dividend and a new share repurchase program.
Positive Outlook
- Continued progress on the LTC multi-year rate action plan with $24M of gross incremental premium approvals.
- Strong progress made towards the expansion of the CareScout Quality Network, growing coverage to 90% of the aged 65-plus census population.
- Enact announced an increase to its quarterly dividend from $0.185 to $0.21 per share.
- Enact also announced a new share repurchase program with authorization to purchase up to $350 million of common stock.
- The CareScout Insurance inaugural LTC product was approved by the Compact in 23 jurisdictions.
Challenges Ahead
- The inability to successfully launch new lines of business, including long-term care insurance and other products and services with CareScout.
- Failure to maintain the self-sustainability of legacy U.S. life insurance subsidiaries due to the inability to achieve desired levels of in-force rate actions or timing delays.
- Inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results.
- Impact on holding company liquidity caused by an inability to receive dividends or other returns of capital from Enact Holdings, and limited sources of capital and financing.
- Adverse changes to the structure or requirements of Fannie Mae, Freddie Mac or the U.S. mortgage insurance market.