Genworth Q3 2021 Earnings Report
Key Takeaways
Genworth Financial reported a net income of $314 million and adjusted operating income of $239 million for the third quarter of 2021. The successful completion of the Enact IPO improved the company's financial position and drove ratings improvements. The U.S. life insurance segment benefited from long-term care insurance results.
Completed IPO of Enact with net proceeds of $529 million to Genworth, reducing ownership of Enact from 100 percent to 81.6 percent
Received ratings upgrades from Moody’s Investors Service and S&P Global Ratings following the IPO, in recognition of improvement in Genworth Holdings, Inc.’s credit risk profile and increased financial flexibility
Significantly reduced holding company debt, including the retirement of the AXA S.A. (AXA) promissory note ($296 million) and AXA’s corresponding release of the 19.9% of Enact common stock pledged as collateral for the note, as well as the redemption of the remaining principal amount of the September 2021 debt maturity ($513 million)
Continued progress against LTC multi-year rate action plan, with $117 million in annual premium rate increases and benefit reductions approved in the third quarter of 2021, bringing total net present value from LTC rate actions to over $16.3 billion since 2012
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Forward Guidance
Genworth did not provide specific forward guidance in this earnings report.