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Genworth Financial (GNW) investor relations material

Genworth Financial Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary31 Jul, 2025

Executive summary

  • Net income for Q2 2025 was $51M ($0.12 per diluted share), with adjusted operating income of $68M ($0.16 per share), supported by strong Enact contributions and $94M in capital returns.

  • CareScout expanded its Quality Network to cover over 90% of the U.S. 65+ population and launched new Care Plans service.

  • Favorable UK High Court ruling in the AXA Payment Protection Insurance case could yield up to $750M, pending appeals.

  • $30M in share repurchases executed in Q2 2025, with $620M repurchased program-to-date and a 19% reduction in shares outstanding since inception.

Financial highlights

  • Enact contributed $141M to adjusted operating income; primary insurance in force grew 1% year-over-year to $270B, with primary new insurance written up 35% sequentially.

  • LTC insurance segment posted an adjusted operating loss of $37M, impacted by higher benefit utilization and remeasurement losses, partially offset by recapture gains.

  • Life and Annuities reported a $7M adjusted operating loss; annuities income of $13M offset by $20M loss in life insurance.

  • U.S. life insurance companies' RBC ratio at 304%, with holding company cash and liquid assets at $248M at quarter end.

  • Net investment income was $802M, with net investment losses of $28M in Q2 2025.

Outlook and guidance

  • Enact expects to return ~$400M to shareholders in 2025; Genworth anticipates receiving ~$325M based on its 81% stake.

  • CareScout targets 2,850 matches for 2025, with 55% of the annual target achieved by Q2 and expansion to new customers and jurisdictions underway.

  • Investment in CareScout Insurance increased to $85M for 2025, with $45–$50M planned for CareScout Services.

  • Share repurchase allocation for 2025 expected between $100M and $150M, excluding potential AXA litigation proceeds.

  • Management expects continued volatility in LTC results due to assumption updates and experience variances.

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Frequently asked questions

Long-term Care and Life Insurance

Genworth Financial, Inc. is an American financial services company. Its main offerings are life and long-term care and mortgage insurance. In addition to its core insurance products, Genworth also provides annuities and other offerings, providing a suite of services aimed at addressing various aspects of financial planning and risk management. The company is headquartered in Richmond, Virginia, and its shares are listed on the NYSE.

General Electric Spinoff

The modern history of Genworth starts with its time as part of General Electric (GE). In 1996, GE Capital, the financial services unit of General Electric, acquired First Colony Life Insurance, which in turn marked the beginning of GE's expansion into the insurance sector.

Over the following years, GE Capital continued to expand its insurance and financial services operations. It acquired several companies, including life insurance, mortgage insurance, and long-term care insurance providers. This period was marked by significant growth and diversification of services. In 2003 GE spun off its insurance business as Genworth Financial, which in turn had its IPO in 2004. Today, it competes with the likes of MetLife and Prudential Financial.

Life Insurance Offerings

At its core, Genworth Financial specializes in offering various insurance products and services. One of its primary focuses is on life insurance, providing a range of options tailored to meet the diverse needs of individuals and families. This includes term life insurance, which offers protection for a specified period, and whole life insurance, which combines a death benefit with a savings component. These products are designed to offer financial security and peace of mind, ensuring that beneficiaries are supported in the event of the policyholder's death.

Long-Term Care Insurance

Long-term care insurance is another key offering from Genworth Financial. It is designed to cover expenses that are typically not included in traditional health insurance plans, such as assistance with daily living activities and long-term care services. This insurance provides a layer of financial protection, helping individuals and their families manage the potentially significant costs associated with long-term care.

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