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Jun 30, 2021
Genworth Q2 2021 Earnings Report
Genworth's financial condition was strengthened and long-term shareholder value was created.
Key Takeaways
Genworth Financial reported a strong second quarter with a net income of $240 million and adjusted operating income of $194 million. The company made significant progress on its strategic objectives, including preparations for an IPO of Enact and debt reduction.
Net income was $240 million, or $0.47 per diluted share, compared to a net loss of $441 million, or $0.86 per diluted share, in the second quarter of 2020.
Adjusted operating income was $194 million, or $0.38 per diluted share, compared to an adjusted operating loss of $23 million, or $0.05 per diluted share, in the second quarter of 2020.
Enact's adjusted operating income was $135 million, driven by favorable loss performance from lower new delinquencies.
Holding company cash and liquid assets totaled $842 million, including $19 million restricted.
Forward Guidance
Genworth is focused on strengthening its financial position and creating long-term shareholder value through strategic initiatives.
Positive Outlook
- Continued progress on MYRAP with $49 million incremental annual rate increases approved in the second quarter.
- Planned IPO of Enact remains a key strategic objective.
- Redeemed $513 million of outstanding principal amount of senior notes in July 2021.
- Goal to reduce parent holding company debt to a sustainable level of approximately $1 billion.
- Company is well-positioned to create value over the long-term.
Challenges Ahead
- Planned IPO of Enact is subject to market and other conditions.
- Company is in registration and subject to applicable publicity restrictions, limiting commentary.
- Parent holding company public debt outstanding is $1.7 billion, in addition to the AXA liability of approximately $345 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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