Genworth Financial (GNW) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $47 million ($0.12 per diluted share), with adjusted operating income excluding Closed Block at $109 million ($0.28 per diluted share), reflecting strong Enact performance and continued investment in CareScout Services.

• Enact contributed $140 million in adjusted operating income and $99 million in capital returns, supporting share repurchases and investments in CareScout.

• CareScout expanded its Quality Network, added senior living communities and home care locations, and facilitated over 1,400 matches, targeting 7,500 matches and $25 million in revenue for 2026.

• Share repurchases totaled $66 million in Q1 2026, with $856 million repurchased since program inception and $175 million remaining under current authorization.

• Closed Block segment reported a $32 million adjusted operating loss, with long-term care insurance impacted by higher claims and lower terminations, partially offset by insurance recoveries.

Financial highlights

• Total revenues were $1.78 billion, nearly flat year-over-year; net investment income rose 4% to $766 million.

• Enact’s PMIERS sufficiency ratio was 162%, or $1.9 billion above requirements; primary delinquency rate was 2.6%.

• Legacy insurance companies’ RBC ratio was 289%, down from 300% in the prior quarter.

• Holding company liquidity at $166 million at quarter-end; $66 million in share repurchases during Q1 at $8.61/share.

• Net investment losses of $26 million compared to gains of $27 million in Q1 2025.

Outlook and guidance

• Expect $405 million in capital returns from Enact and $195–$225 million allocated to share repurchases in 2026.

• CareScout targets 7,500 matches and $25 million in service revenue for 2026; investments projected at $50–$55 million.

• Management expects continued capital returns from Enact to fund strategic initiatives, including CareScout growth, share repurchases, and debt reduction.

• Anticipate A to E losses of ~$300 million for Closed Block in 2026; ongoing volatility in long-term care insurance results expected.

• Ongoing rollout of Care Assurance insurance product, with expansion into new states and education initiatives.