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Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10:00 a.m. ET Interim President, Chief Executive Officer, and Chief Financial Officer - Jerome Thomas Upton Head of Investor Relations - Christine Jewell President and CEO of our Closed Block Insurance business - Jamala Arland General Counsel - Gregory Scott Karawan Chief Investment Officer - Kelly A. Saltzgaber CEO of CareScout - Samir Shah CFO of our closed block insurance business - Angela Simoes Operator: I would now like to turn the presentation over to Christine Jewell, Head of Investor Relations. Please proceed. Christine Jewell: Thank you, and good morning. Welcome to Genworth's second quarter 2026 earnings call. The slide presentation that accompanies this call is available on the Investor Relations section of the Genworth website, investor.genworth.com. Our earnings release and financial supplement can also be found there and we encourage you to review these materials. Speaking today will be Jerome Thomas Upton, interim president and chief executive officer and chief financial officer. Following our prepared remarks, we will open the call for questions. In addition to Jerome, Jamala Arland, President and CEO of our Closed Block Insurance business, Gregory Scott Karawan, general counsel Kelly A. Saltzgaber, chief investment officer, Samir Shah, CEO of CareScout and Angela Simoes, CFO of our closed block insurance business, will also be available to take your questions. Together, the leadership team on today's call brings deep institutional knowledge with an average tenure at Genworth of nearly 20 years. During this morning's call, we may make various forward looking statements. Our actual results may differ materially from such statements. We advise you to read the cautionary notes regarding forward looking statements in our earnings release and related presentation as well as the risk factors of our most recent annual report on Form 10-K as filed with the SEC. Today's discussion also includes non GAAP financial measures that we believe may be meaningful to investors. In our investor materials, non GAAP measures have been reconciled to GAAP where required in accordance with SEC rules. Additionally, reference to statutory results are estimates due to the timing of the statutory filings. And now I will turn the call over to Jerome. Jerome Thomas Upton: Thank you, Christine and good morning, everyone. Thank you for taking the time to join our second quarter earnings call. Before turning to our results, I want to acknowledge Tom's leave of absence for medical reasons which we announced last month. On behalf of the board, and our leadership team, we continue to wish Tom well and appreciate the support that has been shown over the last several weeks. We understand that you may have additional questions but we ask that you withhold them for now. We will share any material developments including any timelines as and when appropriate. I have been serving as interim president and CEO since that announcement. While continuing in my role as Chief Financial Officer. Genworth has a deep and experienced leadership team that has been actively engaged with Tom and our board in the development of our strategy. The board remains confident in our strategic direction and the ability of our leadership team to execute against our objectives. I am grateful for the support of our board and leadership team as well as all of our colleagues in Genworth. As we focus on advancing our existing strategy and delivering for our policyholders and shareholders. I will now share a brief overview of our second quarter results. Enact once again generated strong shareholder value We advanced our long term growth strategy through CareScout, and we further strengthen the self sustainability of our closed block. Genworth reported net income of $47 million or $0.12 per share with adjusted operating income excluding the closed block of $112 million or $0.29 per share, Our results this quarter were led by continued strong performance from an act with adjusted operating income of $143 million Turning to Slide 5, I will highlight our progress against each of Genworth's 3 strategic priorities during the second quarter. First, we continue to create shareholder value through Enact's growing book value and capital returns. Our approximate 81% ownership stake in Enact remains a key source of cash flows to Genworth. And helps fuel our disciplined approach to capital allocation. Our balanced capital allocation strategy includes returning capital to shareholders through share repurchases, while also investing in our long term growth opportunities through CareScout. This approach enables us to drive near term shareholder value while still positioning the company for sustainable long term growth. During the second quarter, we received $103 million in capital returns from EnACT. Supported by these strong cash flows, we continued to execute on our share repurchase program. Since the initial authorization of our buyback program in May 2022, we have bought back approximately $922 million worth of shares at an average price of $6.48 per share through July 31. We believe these repurchases have created long term value for shareholders while allowing us to continue investing in CareScout which brings me to our next strategic priority. Turning to slide 6, we continue to drive growth through CareScout. Which represents a significant long term opportunity given the growing demand for aging care including from 70 million baby boomers now aged 62 to 80. We are building a comprehensive aging care platform designed to help people understand, find, and fund the quality long term care they need. We will do this in 3 ways. First, by providing access to a suite of integrated solutions across the aging journey. Second, through expert guidance informed by our data and decades of claims experience. And third, technology enabled human connection delivering that expertise through trained advisers who provide personalized local support. And helping families navigate what is often a complex, fragmented, and emotional process. We are integrating these capabilities across the platform to deliver a seamless experience and build a scalable business for long term growth. Beginning with CareScout services on slide 7, we continue to expand the CareScout network at an impressive pace. In the first quarter, we added our first senior living communities to the network marking an important step in broadening access beyond home care and expanding options available to consumers in the marketplace. As of the end of the second quarter, the network now includes more than 1.1 thousand home care locations and we continue to integrate senior living communities targeting at least 2,000 in the network by the end of this year. Across major markets, the network now includes local advisers, aging care experts who help guide families in their search for high quality senior living communities. Once engaged, they provide personalized guidance helping families navigate what can be a complex and important decision. So far this year, we have doubled the number of local advisers with representation in 26 states as of the end of the quarter. Together with our nationwide network of nurses, these local advisers provide families with access to both expert guidance and clinical expertise. As a reminder, our revenue model for senior living communities differs from our home care model with CareScout earning a 1-time placement fee upon a successful move in consistent with how the broader industry operates. This complements our existing home care preferred pricing model and contributes to a more diversified and scalable stream of revenue. We facilitated approximately 1.45 thousand matches between care seekers and providers in the second quarter. Bringing total matches for the first half of the year to approximately 2.95 thousand over double the number of matches achieved in the first half of 2025. Beyond the end of the quarter, matches have been strong and well ahead of matches in the prior year. We have also made strong progress expanding CareScout's match footprint beyond our existing policyholder base bolstered by senior living matches. As the network continues to scale, and brand awareness grows, we expect to drive increased traction across the platform. We also expect a higher share of Genworth policyholders to utilize network providers and benefit from more efficient care coordination by our team. Hoping to stretch their benefit dollars further while also generating claim savings for our closed block over time. We are continuing to expand our offerings to employers, and select affinity groups. This represents an opportunity to introduce more consumers to the CareScout brand broaden access to our services, and generate additional fee based revenues over time. Turning to CareScout Insurance on slide 8, we are pleased with the progress we have made toward launching our CareAssurance worksite product. A version of our inaugural stand alone long term care product that will be available through employers. The worksite product is approved, and ready for a third quarter launch in at least 34 states. Expanding Care Assurance into an important new distribution channel. We also continue to make progress seeking approvals in additional states. The worksite insurance offering combines long term care, cost protection with immediate access to CareScout's ecosystem of aging care, helping policyholders and their families confidently navigate care needs through care planning care navigation, caregiver support, and the CareScout Quality Network. This combination is differentiated in the marketplace as it helps customers prepare for their own future care needs while providing immediate resources that can support parents or other family members navigating care decisions today. As with our standalone CareAssurance product, the worksite offering is priced and structured for the long term. We remain focused on disciplined growth appropriate risk management, and delivering a strong customer value proposition while driving returns for our shareholders. Our third strategic priority is actively managing our self sustaining customer centric, closed block of LTC, life, And annuity products. This business is being managed with a focus on ensuring long term sustainability, maintaining capital discipline, and delivering supportive policyholder experiences. Our multiyear rate action plan or MIRAB remains our most effective lever for maintaining that sustainability. In the second quarter, we secured $46 million of gross incremental premium approvals compared with $41 million in the prior year. We also received an additional $27 million of approvals in July. We continue to work with regulators to finalize pending rate increase requests but the timing of approvals can be difficult to predict. We expect full-year 2026 premium approvals and benefit reductions to be broadly in line with 2025 levels contributing approximately $1 billion of value on a net present value basis. As we enter the later stages of MyRAP, we expect the relative impact of benefit reductions to increase while the relative impact of premium increases declines. This reflects the shrinking runway of future premium from Genworth policyholders as the closed block ages. We remain focused on executing this program with discipline, to ensure the long term self sustainability of the closed block. I would now like to walk through our second quarter financial results in further detail beginning on Slide 9. Adjusted operating income excluding the closed block was $112 million, driven by strong performance in Enact, partially offset by a loss in Corporate and Other. As a reminder, results of our Closed Block segment are reported separately in our disclosures. EnAct delivered another strong quarter of performance with adjusted operating of $143 million to Genworth. Results included a pretax reserve release of 37 million reflective of continued strong peer performance and loss mitigation activities. Results are up versus the prior quarter from seasonally lower losses and the prior year reflecting higher net investment income partially offset by the lower reserve release. In Corporate and Other, we reported an adjusted operating loss of $31 million for the quarter reflecting debt service cost and a growing CareScout business. Our Closed Block segment reported an adjusted operating loss of $110 million. This was driven by liability remeasurement loss related to the actual variances from expected experience, or A-to-E of $127 million pretax primarily in LTC. Our A to E loss experience in the first half of 2026 has trended above the level implied by our full year expectation of approximately $300 million. While results can vary quarter to quarter, if these trends continue, the full year A to E losses could be higher than that level. As a reminder, these GAAP fluctuations do not impact our cash flows economic value or how we manage the business. Now, taking a closer look at Enact's performance beginning on slide 10. New insurance written of $15 billion in the quarter was seasonally higher than the prior quarter an increase versus the prior year as a result of a larger estimated market size. Primary insurance in force increased 2% year-over-year to $274 billion supported by new insurance written and continued elevated persistency. Earned premiums were $245 million in the quarter, up versus the prior quarter and in line with the prior year. As shown on Slide 11, EnAct's favorable $37 million pretax reserve release drove a loss ratio of 14%. In ACT's estimated PMIER sufficiency ratio remained strong at 161% or approximately $1.9 billion above requirements. Genworth's share of Enact's book value including AOCI was $4.4 billion at the end of the second quarter, compared to $4.3 billion at the end of the first quarter. Enact has continued to deliver significant capital returns to Genworth. As I noted earlier, EnAct returned $103 million of capital to Genworth during the quarter. Enact's strong balance sheet disciplined underwriting, financial flexibility position it to navigate a dynamic macroeconomic environment and continue creating shareholder value. Turning to our closed block on Slide 12. We continue to proactively manage and reduce LTC risk through prudent in force management. Including benefit reductions and premium rate increases. As of the end of the second quarter, we had achieved an aggregate approximately $34.8 billion of benefit reductions and premium increases on a net present value since 2012. As part of our MIRAP, we offer a suite of options to help policyholders manage premium increases while maintaining meaningful coverage. These benefits solutions enable us to reduce our exposure to certain higher cost features such as 5% compound benefit inflation options and large benefit pools. Cumulatively, about 62% of policyholders offered a benefit reduction have elected to take 1. Lowering our long term risk. These initiatives have helped reduce our exposure to the riskiest LTC features. Notably, our exposure to the 5% compound benefit inflation option has decreased to approximately 35%, down from 57% in 2014 and the percentage of our policies with lifetime benefits has decreased to 11% from 24% in 2014. We remain committed to managing the closed block as a closed system. Leveraging existing reserves and capital to cover future claims. We will not inject capital into these companies and given the long tail nature of our LTC insurance policies, with peak claim years still over a decade away, we also do not expect capital returns. Turning to Slide 13. Our investment portfolio remains resilient, and is conservatively positioned. The majority of our assets are in investment grade fixed maturities held to support our long duration liabilities. New money yields continue to exceed those on sales and maturities with cash in our life insurance companies being invested at yields of approximately 6.2% for the quarter. Our alternative assets program is largely comprised of diversified private equity investments and has targeted returns of approximately 12%, although fluctuations from quarter to quarter are expected. In the second quarter, realizations rebounded from a slow start to the year and helped drive higher investment income. We remain committed to growing our alternative assets portfolio within regulatory limitations due to its robust track record of returns diversification benefits, and natural fit with long term liabilities. Next, turning to the holding company on Slide 14. We ended the quarter with $215 million in cash and liquid assets. When evaluating holding company liquidity for capital allocation purposes, and calculating the buffer to our debt service target. We excluded approximately $81 million of cash held for future obligations at the end of the quarter including advanced cash payments from our subsidiaries. Our liquidity remains supported by recurring capital returns from an act and our disciplined approach to capital deployment. Moving to capital allocation, on Slide 15, our priorities remain unchanged. We will continue to invest in long term growth through CareScout, return cash to shareholders through our share repurchase program, when our share price trades below intrinsic value and opportunistically retire debt. During the quarter, we repurchased $62 million of shares at an average price of $8.74 per share and an additional $4 million in July. We also retired $10 million of principal debt in the quarter at a discount bringing our holding company debt to $768 million We maintain a disciplined capital structure with a cash interest coverage ratio on debt service of approximately 9x. I will now turn to our outlook for 2026 and provide an update on the guidance we previously shared. On its earnings call this morning, Enact shared that it now expects to return approximately $550 to $600 million of capital to its shareholders in 2026. Based on our approximate 81% ownership position, we now expect to receive between $445 million and $485 million from EnACT for the full year. Second, we continue to create value for shareholders through our share repurchase program. For the full year 2026, we now expect to allocate between $225 and $250 million to share repurchases. As we have said before, this range may vary based on market conditions business performance holding company cash, and our share price. Third, turning to CareScout services. We remain focused on growing matches toward our previously discussed 2026 target of approximately 7.5 thousand. Compared with 3.25 thousand in 2025. We continue to make good progress and expect continued growth as we expand the CareScout network integrate additional senior living communities, and increase consumer engagement. However, current match volumes are pacing below the level that would be required to reach the full year target. CareScout services generated $6 million of revenue in the second quarter, and a total of $12 million during the first half of the year. We continue to expect revenue in this business of $25 million for the full year. We also continue to expect investment of approximately $50 to $55 million in CareScout services during 2026. These investments will support the continued expansion of our technology platform the addition of new products, and growth across consumer and B2B channels. We are also deepening carrier partnerships and enhancing operational infrastructure to support higher volumes. Recurring revenue, and long term scalability. For CareScout Insurance, we currently do not anticipate any additional capital investment in 2026 following our initial $85 million investment made in 2025 to support the launch of the business. We have made good progress overall with CareScout and remain confident in its continued growth in 2026. As we have noted previously, scaling these businesses and achieving breakeven will take time. I will now provide an update on the AXA litigation. The appeal hearing occurred in July. We continue to expect the court of appeal to reach a decision within approximately 3 to 6 months following the hearing. If the judgment is ultimately upheld, and all appeals are favorably resolved, we expect to recover a total sum of approximately $750 million, subject to exchange rates at that time. We do not expect to pay taxes on this recovery. As we previously said, recoveries are not factored into our current capital allocation plans. If proceeds are received, we will deploy them in line with our existing priorities. Investing in CareScout returning capital to shareholders and reducing debt. In closing, we are pleased with the progress we made against our priorities and with our financial performance in the second quarter. ENACT continues to deliver strong performance and capital returns. CareScout is expanding its network, products, and distribution capabilities as we build a comprehensive agent care platform. At the same time, we continue to actively manage our closed block and maintain our disciplined and balanced approach to capital allocation. Our focus remains on driving long term shareholder value through an act and CareScout, returning capital to shareholders, maintaining financial flexibility, and proactively managing our liabilities and risk. I also want to recognize our leadership team and colleagues for their continued focus and execution over the past several weeks. Their commitment to our policyholders customers, and shareholders gives me confidence in our ability to execute against our priorities. Now, let's open up the line for questions. Operator: Thank you. Ladies and gentlemen, we will now begin the Q&A portion of the call. As a reminder, please refrain from using cell phones, speakerphones or headsets. Press *1 to ask a question. If at any time your question has already been answered, or you would like to withdraw your question, please press *2 to be removed from the queue. Please press *1 now. We will pause for just a moment to assemble the queue. We will take our first question from Ryan Joel Krueger with KBW. Ryan Joel Krueger: First, I wanted to our best wishes to Tom. For terms of our question, I guess, could on the access Santander hearing, can you give us just any are you able to provide any color on kinda your takeaway and view of how the hearing went in July as it is a bit difficult admittedly to follow it from here sometimes. Jerome Thomas Upton: So, Ryan, first of all, this is Jerome. And thank you for your sentiments expressed, to Tom. Operator: I am going to ask Gregory Scott Karawan, who is here with me, to answer your question around AXA and the July appellate court process? Gregory Scott Karawan: Thanks, Jerome, and thanks for your question, Ryan. The only color commentary I can give you is that I think Axis lawyers did an excellent job. But having been in this business for 40, almost 40 years, I know 1 thing for certain, and that is litigation is inherently uncertain. So we are not going to speculate on the outcome, but we were pleased with the way the hearing went. Ryan Joel Krueger: Thanks, and follow-up just on the potential use of proceeds if successful. I know you mentioned the same priorities you have been executing on, but would you see any or need or desire to accelerate the amount of either debt reduction or investment into CareScout, or should we expect those to continue along a similar path regardless and then most of the incremental proceeds, if successful, could be used more for share repurchase. Jerome Thomas Upton: Well, Ryan, thanks for the question. I would just say, first of all, you have observed that we did up our share buyback guidance to $225 to $250 million So that is number 1. Number 2, I know that you understand and know that any proceeds from AXA are not currently baked into our cash plan as a result of the uncertainty that Gregory just highlighted. I would always go back to the capital allocation process that we use, and that is fund growth at an appropriate return We would always look to return capital. And if we are shares trading below intrinsic value, then we will use share buybacks, which has been predominant our predominant return of capital and then opportunistic opportunistically retire debt. And related to accelerating anything, I if I do not have the cash, it is kind of hard to put the cash to work, and I know that you understand that. Great. Thank you. Great. Operator: As a reminder, you would like to ask a question at this time, please press *1. We will pause for just a moment. It appears that there are no questions at this time. Ladies and gentlemen, I will now turn the call back over to Mr. Upton for closing comments. Jerome Thomas Upton: Thank you, Cynthia, and thanks to all who joined the call today. Before we conclude, I wanted to reiterate my confidence in Genworth's direction and in the strength and depth of our leadership team. We remain focused on delivering for our policyholders, our customers, and our shareholders, advancing CareScout creating value through EnACT, and maintaining a disciplined approach to capital allocation. Thank you for your continued interest and investment in Genworth. We look forward to speaking with you again next quarter. Operator: Ladies and gentlemen, this concludes Genworth Financial's second quarter conference call. Thank you for your participation. At this time, the call will end. Before you buy stock in Genworth Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Genworth Financial wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Genworth (GNW) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Genworth Financial, Inc.? Here are five stocks we like better. Enact led Genworth’s second-quarter performance, contributing $143 million in adjusted operating income and returning $103 million of capital. Genworth raised its 2026 expected Enact capital-return range to $445 million–$485 million. Genworth increased its 2026 share-repurchase outlook to $225 million–$250 million after buying back $62 million of stock in the quarter, while also reducing holding-company debt by $10 million. CareScout continued expanding its aging-care network and worksite insurance offering, but the closed block posted a $110 million adjusted operating loss as long-term-care claims experience worsened; Genworth warned full-year losses could exceed its roughly $300 million expectation. 3 Small-Cap Stocks Trading Under $10 With Room to Run Genworth Financial (NYSE:GNW) reported second-quarter net income of $47 million, or $0.12 per share, while adjusted operating income excluding its closed block business totaled $112 million, or $0.29 per share. The company’s results were led by mortgage insurance subsidiary Enact, while losses in the closed block and continued investment in CareScout weighed on overall performance. Jerome Upton, Genworth’s interim president and chief executive officer and chief financial officer, said the company continues to focus on three priorities: generating shareholder value through Enact, building its CareScout aging-care platform, and managing the self-sustainability of its closed block of long-term care, life insurance and annuity products. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Genworth Financial Stock is Retracing Fine Upton also addressed the medical leave of absence of Tom, whose last name was not provided during the call. Upton said the board remains confident in Genworth’s strategy and leadership team, adding that the company would share material developments when appropriate. Enact contributed $143 million of adjusted operating income to Genworth in the quarter. Its results included a $37 million pre-tax reserve release, reflecting what Upton described as continued strong performance and loss mitigation activity. Enact’s loss ratio was 14% for the quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Forgotten Genworth Financial Stock is Ready to Unlock Value New insurance written at Enact was $15 billion, increasing from the prior-year period due to a larger estimated market size. Primary insurance in force grew 2% year over year to $274 billion, supported by new insurance written and elevated policy persistency. Earned premiums were $245 million, up sequentially and in line with the prior-year quarter. Enact’s estimated PMIER sufficiency ratio stood at 161%, or about $1.9 billion above requirements, at the end of the second quarter. Genworth’s share of Enact’s book value, including accumulated other comprehensive income, rose to $4.4 billion from $4.3 billion at the end of the first quarter. → No Hangover: Revisiting Microsoft One Week After Earnings Enact returned $103 million of capital to Genworth during the quarter. Following Enact’s earnings release, Genworth increased its estimate for full-year capital returns from Enact to between $445 million and $485 million, based on Genworth’s approximately 81% ownership position. Enact expects to return roughly $550 million to $600 million to shareholders during 2026. Genworth repurchased $62 million of shares during the second quarter at an average price of $8.74 per share, followed by another $4 million of repurchases in July. Since its buyback authorization began in May 2022, the company has repurchased approximately $922 million of stock at an average price of $6.48 per share through July 31. The company increased its 2026 share repurchase outlook to a range of $225 million to $250 million. Upton said the amount ultimately deployed could vary based on market conditions, business performance, holding company cash and Genworth’s share price. Genworth also retired $10 million of principal debt at a discount during the quarter, leaving holding company debt at $768 million. The company ended the quarter with $215 million of cash and liquid assets. For capital-allocation purposes, it excluded about $81 million of cash held for future obligations, including advance cash payments from subsidiaries. Upton said Genworth’s capital-allocation priorities remain investing in CareScout growth, repurchasing shares when they trade below intrinsic value, and opportunistically reducing debt. CareScout Services continued expanding its aging-care provider network, which included more than 1,100 home-care locations as of the end of the second quarter. Genworth began adding senior living communities to the network in the first quarter and is targeting at least 2,000 senior living communities by year-end. The company doubled the number of local advisers during the year to date, with advisers represented in 26 states at quarter-end. These advisers help families evaluate senior living options, while CareScout’s nurse network provides clinical expertise. CareScout facilitated approximately 1,450 matches between care seekers and providers in the second quarter, bringing first-half matches to approximately 2,950—more than double the total from the first half of 2025. However, Upton said current match volumes are pacing below the level required to achieve the company’s full-year target of approximately 7,500 matches, compared with 3,255 in 2025. CareScout Services generated $6 million of revenue in the second quarter and $12 million in the first half. Genworth maintained its full-year revenue expectation of $25 million and projected 2026 investment in the business of approximately $50 million to $55 million. Meanwhile, CareScout Insurance’s Care Assurance worksite product was approved for a planned third-quarter launch in at least 34 states. The employer-distributed product combines long-term care cost protection with access to CareScout care-planning, navigation, caregiver-support and provider-network services. Genworth said it does not anticipate additional capital investment in CareScout Insurance during 2026 after making an initial $85 million investment in 2025. Genworth’s closed block segment reported an adjusted operating loss of $110 million, driven by a $127 million pre-tax liability remeasurement loss tied primarily to long-term care actual-versus-expected experience. Upton said first-half actual-versus-expected loss experience trended above the level implied by Genworth’s full-year expectation of about $300 million. If the trend continues, full-year losses could exceed that amount. He said these GAAP fluctuations do not affect the company’s cash flows, economic value or approach to managing the business. The company secured $46 million of gross incremental premium approvals in the second quarter, compared with $41 million a year earlier, and received an additional $27 million of approvals in July. Genworth expects 2026 premium approvals and benefit reductions to be broadly in line with 2025 levels, contributing about $1 billion of value on a net-present-value basis. Since 2012, Genworth has achieved approximately $34.8 billion of benefit reductions and premium increases on a net-present-value basis. About 62% of policyholders offered a benefit reduction have chosen that option, according to the company. Genworth said it will continue to manage the closed block as a closed system using existing reserves and capital to cover future claims. The company does not expect to inject capital into the closed-block companies or receive capital returns from them. Genworth said an appeal hearing related to its AXA litigation took place in July. The company expects the Court of Appeal to issue a decision about three to six months after the hearing. If the judgment is upheld and all appeals are resolved favorably, Genworth expects to recover approximately $750 million, subject to exchange rates at the time. The company said it does not expect to owe taxes on any recovery. Greg Karawan, Genworth’s general counsel, said the company was pleased with how the hearing proceeded but emphasized that litigation is inherently uncertain. Upton said any potential recovery is not incorporated into current capital-allocation plans. If received, proceeds would be allocated according to existing priorities, including CareScout investment, shareholder returns and debt reduction. Genworth Financial (NYSE: GNW) is a leading financial security company offering a broad range of insurance products. Based in Richmond, Virginia, Genworth provides individuals and families with solutions designed to protect against long-term care expenses, secure life insurance needs and support homeownership through private mortgage insurance. With operations spanning the United States, Canada and Australia, the company serves both retail and institutional clients through a diversified portfolio of risk management services. The company's Private Mortgage Insurance (PMI) segment offers coverage to lenders and consumers in the US, Canada and Australia, enabling homebuyers to purchase properties with lower down payments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Genworth Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was anchored by Enact, which remains the primary engine for cash flow and capital allocation flexibility through Genworth's 81% ownership stake. Management is pivoting CareScout from a service provider to a comprehensive aging care platform, integrating senior living communities to diversify revenue beyond the existing home care preferred pricing model by earning one-time placement fees. The Multi-Year Rate Action Plan (MyRAP) is transitioning into a later stage where benefit reductions are expected to outpace premium increases as the closed block ages. Operational focus remains on the 'closed system' philosophy for Long-Term Care (LTC), utilizing existing reserves and rate actions to ensure self-sustainability without parent capital injections. Strategic capital allocation balances near-term shareholder returns via buybacks with long-term growth investments in the CareScout services and insurance infrastructure. Investment strategy prioritizes high-quality fixed maturities to match long-duration liabilities, supplemented by a 12% target return alternative assets program to drive yield. Full-year 2026 premium approvals and benefit reductions are projected to remain broadly in line with 2025 levels, targeting approximately $1 billion in net present value. CareScout match volumes are currently pacing below the trajectory needed to hit the 7.5 thousand annual target, though management expects growth from network expansion. The CareAssurance worksite product is positioned for a third-quarter launch in at least 34 states, marking a strategic entry into employer-based distribution channels. Management raised the 2026 share repurchase guidance to a range of $225 million to $250 million, supported by increased expected capital returns from Enact. A decision on the AXA litigation appeal is anticipated within 3 to 6 months, with a potential recovery of approximately $750 million not yet factored into capital plans. Interim leadership is in place following the CEO's medical leave of absence; management emphasized that strategic objectives and execution timelines remain unchanged. Actual-to-expected (A-to-E) loss experience in the closed block has trended above the $300 million full-year expectation in the first half of 2026. Management flagged that while GAAP fluctuations in the closed block impact reported earnings, they do not affect the underlying cash flows or economic value of the business. Holding company liquidity excludes $81 million in cash held for future obligations and subsidiary advanced payments to maintain a conservative debt service buffer. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed satisfaction with the hearing's proceedings but emphasized that litigation remains inherently uncertain. The company declined to speculate on the specific outcome despite being pleased with the legal presentation in July. Proceeds are not currently 'baked into' the cash plan; if received, they will follow existing priorities: growth investment, share repurchases, and debt retirement. Management indicated that while they have increased buyback guidance, any acceleration of capital deployment is contingent on the actual receipt of cash.

Strategic Highlights Strong capital returns from Enact, with $103M received in the quarter Repurchased $62M of shares in the quarter; $918M since program inception through June 30, 2026 CareScout delivered 1,459 matches1 in the quarter, with continued progress expanding the network Care Assurance Worksite ready for 3Q launch; approved in 34 states as of June 30, 2026 Continued progress on the LTC2 MYRAP3 with approximately $34.8B estimated net present value achieved since 2012 from IFAs4 Financial Highlights Net income5 of $47M, or $0.12 per diluted share, and adjusted operating income, excluding Closed Block5,6 of $112M, or $0.29 per diluted share Enact reported adjusted operating income of $143M5 in the quarter; PMIERs sufficiency ratio7 remains strong at 161%8 Legacy insurance companies’9 RBC ratio10 of 286%8 Genworth holding company cash and liquid assets of $215M11 at quarter-end RICHMOND, Va., August 05, 2026--(BUSINESS WIRE)--Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended June 30, 2026. "Our second quarter results reflect continued execution across our strategic priorities," said Jerome Upton, Interim President & CEO and CFO. "Enact generated strong capital returns that supported our share repurchase program, we expanded the CareScout platform across home care and senior living communities, and we further strengthened the self-sustainability of the Closed Block. Together, these actions position Genworth to continue to drive sustainable long-term growth and create value for shareholders." Consolidated GAAP Financial Highlights Net income was driven by Enact, which had strong operating performance Net investment income, net of taxes, was $660 million in the quarter, up from $605 million in the prior quarter and $634 million in the prior year primarily from higher income from limited partnerships and U.S. Government Treasury Inflation-Protected Securities Net investment gains, net of taxes, increased net income by $29 million in the quarter, compared with losses of $21 million in the prior quarter and $22 million in the prior year. The investment gains in the current quarter were driven primarily by mark-to-market adjustments on equity securities Enact Results in the quarter included a pre-tax reserve release of $37 million reflecting favorable cure performance and loss mitigation activities. The prior quarter and prior year included pre-tax reserve releases of $39 million and $48 million, respectively Pre-tax net investment income of $73 million was up from $66 million in the prior year from higher yields and higher average invested assets Primary new insurance written (NIW) increased 19% versus the prior quarter from seasonality and 15% versus the prior year primarily from a larger estimated market size Primary insurance in-force increased 2% versus the prior year, driven by NIW and continued elevated persistency Enact paid a quarterly dividend of $0.24 per share Estimated PMIERs sufficiency ratio of 161%, $1,894 million above requirements Corporate and Other Current quarter results were primarily driven by continued investment in CareScout to fund growth in the services business and debt service Closed Block Current quarter results were primarily driven by a $127 million pre-tax A/E13 loss Prior quarter included net insurance recoveries of $65 million pre-tax in LTC; prior year included a $26 million pre-tax gain from a third-party reinsurance recapture Results in the prior quarter and prior year reflected pre-tax A/E losses of $36 million and $52 million, respectively Statutory pre-tax income was $6 million in the current quarter Current quarter estimated GLIC consolidated RBC ratio was 286%, down from the prior quarter, primarily from losses in LTC, including higher required capital on claims Holding Company Cash and Liquid Assets Cash and liquid assets were $215 million at the end of the current quarter, which included approximately $81 million of cash held for future obligations, including advance cash payments from the company’s subsidiaries Cash inflows during the current quarter included $103 million from Enact capital returns Current quarter cash outflows included $62 million in share repurchases, $17 million related to debt servicing costs and the repurchase of $10 million in principal of holding company debt at a discount Capital Allocation and Shareholder Returns Executed $62 million in share repurchases in the quarter at an average price of $8.74 per share Executed $128 million in share repurchases at an average price of $8.67 per share year-to-date through June 30, 2026 Executed $918 million in share repurchases since the program’s inception through June 30, 2026 at an average price of $6.47 per share About Genworth FinancialGenworth Financial, Inc. (NYSE: GNW) is a publicly traded holding company headquartered in Richmond, Virginia. Through its family of brands—including CareScout, Genworth, and Enact—Genworth uses its more than 150 years of experience to help families navigate the aging journey with clarity and confidence, offering guidance, products, and services that support caregiving decisions, long-term care planning, and the financial challenges of aging. Genworth is the majority owner of Enact Holdings, Inc. (Nasdaq: ACT), a leading U.S. mortgage insurance provider. For more information, visit https://www.genworth.com. Conference Call InformationInvestors are encouraged to read this press release, summary presentation and financial supplement which are now posted on the company’s website, https://investor.genworth.com. Genworth will conduct a conference call on August 6, 2026 at 10:00 a.m. (ET) to discuss its second quarter results, which will be accessible via: Telephone: 800-330-6710 or 213-279-1505 (outside the U.S.); conference ID # 2307160; or Webcast: https://investor.genworth.com/news-events/ir-calendar Allow at least 15 minutes prior to the call time to register for the call. A replay of the webcast will be available on the company’s website for one year. Prior to Genworth’s conference call, Enact will hold a conference call on August 6, 2026 at 8:00 a.m. (ET) to discuss its second quarter results, which will be accessible via: Telephone: Click here to obtain a dial-in number and unique PIN for Enact’s live question and answer session; or Webcast: https://ir.enactmi.com/news-and-events/events Allow at least 15 minutes prior to the call time to register for the call. Use of Non-GAAP MeasuresThe company uses non-GAAP financial measures entitled "adjusted operating income (loss)" and "adjusted operating income (loss), excluding Closed Block." These non-GAAP financial measures are evaluated by management and the company’s Board of Directors to assess performance, manage capital allocation, and in the case of adjusted operating income (loss), excluding Closed Block, as a factor for determining annual incentive awards and compensation for senior management. These measures have been established to more accurately reflect overall operating performance, as they minimize the impact of macroeconomic volatility. Management believes using adjusted operating income (loss), excluding Closed Block as a consolidated measure of profit or loss better aligns with the company’s strategy and capital allocation framework, as no capital is allocated to the Closed Block segment, which operates on a standalone basis, using existing capital and reserves, along with in-force management actions, to meet future obligations. The company also continues to report adjusted operating income (loss) for the Closed Block segment, as it believes it is the appropriate measure of profit or loss in accordance with segment reporting. Although adjusted operating income (loss) and adjusted operating income (loss), excluding Closed Block are non-GAAP financial measures, the company believes these measures aid in understanding the underlying performance of its operations. The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding: net income (loss) attributable to noncontrolling interests, net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs, and infrequent or unusual non-operating items. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. The company excludes the items listed above from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating performance. Adjustments to reconcile net income (loss) to adjusted operating income (loss) assume a 21% current tax rate, plus any associated deferred taxes, and are net of the portion attributable to noncontrolling interests. Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments. Adjusted operating income (loss), excluding Closed Block is derived from adjusted operating income (loss) and excludes adjusted operating income (loss) of the company’s Closed Block segment. While some of the excluded items may be significant components of net income (loss) determined in accordance with GAAP, the company believes that adjusted operating income (loss), and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss), excluding Closed Block, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the company. Adjusted operating income (loss) and adjusted operating income (loss), excluding Closed Block are not measures of complete profitability; therefore, they should not be considered in isolation or viewed as substitutes for GAAP net income (loss). In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies. In reporting non-GAAP measures in the future, the company may make other adjustments to exclude items it does not consider reflective of its core operating performance. The company may also disclose other non-GAAP operating measures in the future if it believes that such measures would be helpful to investors in their evaluation of the company. A table at the end of this press release provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) and adjusted operating income (loss), excluding Closed Block for the three months ended June 30, 2026 and 2025, as well as the three months ended March 31, 2026. Management also reports revenues of its CareScout services business (CareScout Services) to monitor growth of the business. CareScout Services revenues, which are included in Corporate and Other, primarily consist of fees from the CareScout Quality Network and placement fees earned when placing a care seeker in a senior living community, along with service fees such as eligibility assessments and Care Plans. To arrive at CareScout Services revenues, Corporate and Other revenues are adjusted to exclude intercompany eliminations, revenues from other businesses not individually reportable, including the company’s CareScout insurance business (CareScout Insurance) and international businesses, and other sources of revenue such as corporate net investment income and net investment gains (losses). See the table at the end of this press release for a reconciliation of total Corporate and Other revenues to CareScout Services revenues. Statutory Accounting DataThe company presents certain supplemental statutory data for GLIC and its consolidating life insurance subsidiaries that has been prepared on the basis of statutory accounting principles (SAP). GLIC and its consolidating life insurance subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners that are prepared using SAP, an accounting basis either prescribed or permitted by such authorities. Due to differences in methodology between SAP and GAAP, the values for assets, liabilities and equity, and the recognition of income and expenses, reflected in financial statements prepared in accordance with GAAP are materially different from those reflected in financial statements prepared under SAP. This supplemental statutory data should not be viewed as an alternative to, or used in lieu of, GAAP. This supplemental statutory data includes the company action level RBC ratio for GLIC and its consolidating life insurance subsidiaries as well as combined statutory pre-tax earnings from the principal legacy insurance companies, GLIC, GLAIC and GLICNY. Statutory pre-tax earnings represent the net gain from operations, including the impact from in-force rate actions, before dividends to policyholders, refunds to members and federal income taxes and before realized capital gains or (losses). The combined product level statutory pre-tax earnings are grouped on a consistent basis as those provided on page six of the statutory Annual Statements. Management uses and provides this supplemental statutory data because it believes it provides a useful measure of, among other things, statutory pre-tax earnings and the adequacy of capital. Management uses this data to measure against its policy to manage the legacy insurance companies with internally generated capital. Cautionary Note Regarding Forward-Looking StatementsThis press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," "may" or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company’s future business and financial performance. Examples of forward-looking statements include statements the company makes relating to potential dividends or share repurchases; future return of capital by Enact Holdings, Inc. (Enact Holdings), including share repurchases, and quarterly and special dividends; the cumulative economic benefit of approved and future rate increases and benefit reductions included in the multi-year in-force rate action plan and other reduced benefit options associated with the long-term care insurance products in the company’s Closed Block segment; planned investments in and the company’s outlook for new lines of business or new insurance and other products and services, such as those it is pursuing with its CareScout business (CareScout), including through its CareScout services business (CareScout Services) and its CareScout insurance business (CareScout Insurance); future financial performance, including the expectation that quarterly adverse variances between actual and expected experience could persist resulting in future remeasurement losses in the company’s Closed Block segment; the resolution of the appeal or any potential litigation recovery amounts in connection with the AXA S.A. (AXA) and Santander Cards UK Limited (Santander) litigation, and Genworth’s planned use of proceeds from any recovery in connection with the litigation, including share repurchases, debt repurchases and investments in new businesses; future financial condition and liquidity of the company’s businesses; and statements the company makes regarding the outlook of the U.S. economy. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, inflation, business, competitive, market, regulatory and other factors and risks, including but not limited to, the following: the inability to successfully launch new lines of business, including long-term care insurance and other products and services the company is pursuing with CareScout; the company’s failure to maintain the self-sustainability of GLIC and its subsidiaries, collectively referred to as "Closed Block" or its "legacy insurance subsidiaries," including as a result of the inability to achieve desired levels of in-force management actions and/or the timing of future premium rate increases and associated benefit reductions taking longer to achieve than originally assumed; other regulatory actions negatively impacting the company’s life insurance businesses; inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results (including as a result of any changes in connection with quarterly, annual or other reviews); the impact on holding company liquidity caused by an inability to receive dividends or any other returns of capital from Enact Holdings, and limited sources of capital and financing and the need to seek additional capital on unfavorable terms; the impact on any potential recovery in the AXA and Santander litigation resulting from a successful appeal, significant delays or any other adverse development in the litigation; adverse changes to the structure or requirements of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or the U.S. mortgage insurance market; an increase in the number of loans insured through federal government mortgage insurance programs, including those offered by the Federal Housing Administration; the inability of Enact Holdings and/or its U.S. mortgage insurance subsidiaries to continue to meet the requirements mandated by PMIERs (or any adverse changes thereto), the inability to meet minimum statutory capital requirements of applicable regulators or the mortgage insurer eligibility requirements of Fannie Mae or Freddie Mac; changes in economic, market and political conditions, labor shortages and fluctuating interest rates; unanticipated financial events, which could lead to market-wide liquidity problems and other significant market disruption resulting in losses, defaults or credit rating downgrades of other financial institutions; deterioration in economic conditions, a recession or a decline in home prices, all of which could be driven by many potential factors, including a U.S. federal government shutdown; an increase in the cost of care impacting the company’s long-term care insurance products included in its Closed Block segment; changes in international trade policy, including the potential impact of new or increased tariffs, retaliatory policies or actions from other countries, and trade wars or other events that lead to political and economic instability; changes in government or monetary policies; changes within regulatory agencies; changes in immigration policy; and fluctuations in international securities markets; downgrades in financial strength and credit ratings and potential adverse impacts to liquidity; counterparty credit risks; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of invested assets, including private equity and private credit; changes in tax rates or tax laws, or changes in accounting and reporting standards; litigation and regulatory investigations or other actions, including commercial and contractual disputes with counterparties; the inability to retain, attract and motivate qualified employees or senior management; changes in the composition of Enact Holdings’ business or undue concentration by customer or geographic region; the impact from deficiencies in the company’s disclosure controls and procedures or internal control over financial reporting; the occurrence of natural or man-made disasters, including geopolitical tensions and war (including the Russian invasion of Ukraine, ongoing conflict between Iran and the United States, and economic competition between the United States and China, among others), a public health emergency, including pandemics, or climate change; the inability to effectively manage technology systems (including artificial intelligence), cyber incidents or other failures, disruptions or security breaches of the company or its third-party vendors, as well as unknown risks and uncertainties associated with artificial intelligence; the inability of third-party vendors to meet their obligations to the company; the lack of availability, affordability or adequacy of reinsurance to protect the company against losses; a decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations; unanticipated claims resulting from Enact Holdings’ delegated underwriting and loss mitigation programs; the impact of medical advances such as genetic research and diagnostic imaging, emerging new technology, including artificial intelligence and related legislation; and other factors described in the risk factors contained in Item 1A of the company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 27, 2026. The company provides additional information regarding these risks and uncertainties in its Annual Report on Form 10-K. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Accordingly, for the foregoing reasons, the company cautions the reader against relying on any forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities laws. Footnote Definitions View source version on businesswire.com: https://www.businesswire.com/news/home/20260805657842/en/ Contacts Investors: Christine [email protected] Media: Evans [email protected]

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Enact Holdings has delivered an 89.3% return over the past three years, and with the stock recently closing at US$46.52, the question is whether that run still lines up with what its current valuation signals suggest. Enact Holdings' 89.3% three year return highlights how strongly the stock has rewarded investors over a medium time frame, which raises the bar for what the current price implies about future progress. Expectations around the company’s ability to keep generating reliable earnings from its mortgage insurance activities can support the current share price. At the same time, any shift in investor confidence linked to broader Genworth Financial leadership changes may weigh on how much of a premium investors are willing to pay. With a valuation score of 4 out of 6, Enact Holdings screens as having some signs of being undervalued on the key checks, but it is a mixed picture rather than a straightforward bargain. For investors, the debate is whether Enact Holdings' strong three year share price performance is already pricing in its fundamentals, or if the current valuation still leaves room for further upside. Enact Holdings delivered 36.0% returns over the last year. See how this stacks up to the rest of the Diversified Financial industry. The P/E ratio is a reasonable fit for Enact Holdings because earnings are a key focus for mortgage insurers. Enact Holdings currently trades at about 9.6x earnings, which is below both the Diversified Financial industry average of roughly 15.9x and a peer group average of around 8.7x. That means the stock trades at a discount to the broader sector but at a modest premium to closer peers. A fair P/E ratio implied by the model is about 11.5x, based on Enact Holdings' profitability profile, size and risk characteristics. Compared with this level, the current multiple is lower. This points to a gap between where the stock trades and where the model suggests it might trade if sentiment and fundamentals were more closely aligned. Despite Genworth Financial's leadership transition creating an overhang for some investors, Enact Holdings still trades below this tailored P/E benchmark. On balance, Enact Holdings appears undervalued on its current P/E multiple relative to the fair ratio implied by its fundamentals and industry position. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Enact Holdings act as the bridge from the P/E puzzle to a clearer picture of what assumptions on future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price. They sit on the company’s Community page. Each one frames Enact Holdings' estimated fair value as a thesis about the business that can be revisited over time rather than a one off snapshot. If you have a number driven view on whether Genworth Financial's leadership changes meaningfully shift Enact Holdings' risk and return profile, share a Narrative in the Simply Wall St community to set out your case. It is a chance to put clear assumptions on the table and see how they stack up as new results and news arrive. Do you think there's more to the story for Enact Holdings? Head over to our Community to see what others are saying! For Enact Holdings, the current P/E based view points to the stock looking undervalued relative to what its earnings profile and tailored fair multiple suggest, but the broader valuation checks are mixed rather than emphatically cheap. That leaves the key question whether the current discount is compensation for risks around mortgage insurance earnings quality and Genworth Financial related leadership changes, or if it reflects overly cautious sentiment. From here, the crux of the bull versus bear debate is whether earnings stay resilient enough for the market to close some of that gap in the multiple over time. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ACT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Genworth Financial, Inc.? Here are five stocks we like better. Genworth reported Q1 2026 net income of $47 million and adjusted operating income of $109 million excluding the Closed Block, while management said it will now present core earnings without that legacy segment to better reflect ongoing performance. Enact remained the key cash engine, generating $140 million of adjusted operating income for Genworth and $99 million of capital returns in the quarter, with the unit still expected to return about $500 million of capital in 2026. CareScout is becoming the main growth initiative, with Genworth planning $50 million to $55 million of 2026 investment, expanding its care network, and targeting 7,500 matches this year as it builds out aging-care services and products. Genworth Financial Stock is Retracing Fine Genworth Financial (NYSE:GNW) reported first-quarter 2026 net income of $47 million and adjusted operating income excluding its Closed Block segment of $109 million, as management emphasized continued cash generation from Enact Holdings, investment in CareScout and efforts to manage legacy long-term care insurance liabilities. President and CEO Tom McInerney said the company is changing how it presents its core operating earnings by excluding the Closed Block of legacy insurance products from consolidated adjusted operating income. He said the Closed Block is managed separately and is intended to be self-sustaining, while quarter-to-quarter GAAP volatility “does not reflect the underlying economics or how the business is strategically positioned for the long term.” Genworth will continue to disclose adjusted operating income for the Closed Block separately. → Wells Fargo’s Comeback Is Real—But Not Risk-Free Forgotten Genworth Financial Stock is Ready to Unlock Value “We believe this view of our operating performance better aligns with our strategy and capital allocation framework, driving current and future shareholder returns through Enact and long-term growth opportunities with CareScout,” McInerney said. Genworth’s first-quarter results were led by Enact, which generated adjusted operating income of $140 million attributable to Genworth. Chief Financial Officer Jerome Upton said Enact’s results included a pre-tax reserve release of $39 million, reflecting continued strong cure performance. Enact’s adjusted operating income was lower than the prior quarter because of a smaller reserve release, but higher than the prior year due to increased investment income and favorable expenses. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Enact wrote $13 billion of new insurance in the quarter, down from the prior quarter mainly due to seasonal trends, but higher than the prior year as lower interest rates early in the quarter supported activity. Primary insurance in force rose year over year to $272 billion. Earned premiums were $243 million, slightly lower than both the prior quarter and prior-year period. Enact’s loss ratio was 15%, and its estimated PMIERs sufficiency ratio was 162%, or about $1.9 billion above requirements. Genworth received $99 million in total capital returns from Enact during the quarter. Upton said Enact continues to expect to return approximately $500 million of capital to its shareholders in 2026, implying about $405 million for Genworth based on its roughly 81% ownership stake. → The Great Crypto Thaw: Regulation Ignites an Infrastructure Boom Genworth ended the quarter with $166 million of cash and liquid assets at the holding company. Upton said that, for capital allocation purposes, the company excludes about $50 million of cash held for future obligations, including advance cash payments from subsidiaries. The company repurchased $66 million of shares during the quarter at an average price of $8.61 per share and bought back an additional $19 million through April 30. Since the current buyback authorization began, Genworth has repurchased $875 million of shares at an average price of $6.38 as of April 30, McInerney said. For full-year 2026, Genworth now expects to allocate between $195 million and $225 million to share repurchases, depending on market conditions, business performance, holding company cash and the company’s share price. Genworth also retired approximately $5 million of principal debt during the quarter, bringing holding company debt to $778 million. Upton said the company has a cash interest coverage ratio on debt service of approximately 9 times. Management highlighted CareScout as Genworth’s long-term growth opportunity, describing it as a capital-light platform designed to help families understand, find and fund long-term care. McInerney said the business is being built around comprehensive services, expert guidance and “technology-enabled human connection.” During the quarter, CareScout expanded its CareScout Quality Network, including the addition of its first senior living communities. McInerney said the company expects the network to include more than 1,000 home care locations and about 2,000 senior living communities by the end of 2026. He said the senior living model differs from home care, with CareScout earning a one-time placement fee upon a successful move-in. CareScout facilitated approximately 1,500 matches between care seekers and providers in the first quarter, including its first direct-to-consumer matches in both home care and senior living communities. The company continues to target about 7,500 matches in 2026, up from 3,255 in 2025. CareScout Services generated $6 million of revenue in the first quarter, and management reiterated its expectation for $25 million in service revenue for the full year. Upton said Genworth plans to invest approximately $50 million to $55 million in CareScout Services in 2026 to support technology development, new products and care settings, and growth in consumer and business-to-business channels. He said no additional 2026 investments are currently expected for CareScout Insurance after the company’s $85 million investment last year to launch its inaugural product. McInerney also said Genworth plans to launch its CareAssurance worksite product later this year and is developing hybrid long-term care insurance products that pair a minimum long-term care benefit with low-cost fixed income and equity accounts designed for accumulation. Genworth’s Closed Block segment reported an adjusted operating loss of $32 million in the first quarter, driven by a $36 million pre-tax liability remeasurement loss related to actual variances from expected experience, primarily in long-term care. Upton said long-term care results were favorably impacted by $65 million of pre-tax net insurance recoveries. He added that mortality in both long-term care and life insurance was seasonally higher than the prior quarter but lower than the prior year. Upton said Genworth expects actual-to-expected losses of approximately $300 million for full-year 2026, while noting that GAAP fluctuations do not affect cash flows, economic value or how the company manages the business. The company continues to pursue its Multi-Year Rate Action Plan, which McInerney called its most effective tool for maintaining Closed Block sustainability. Genworth secured $5 million of gross incremental premium approvals in the first quarter and another $45 million early in the second quarter. McInerney said full-year 2026 premium approvals and benefit reductions are expected to be broadly in line with 2025 levels, contributing about $1 billion of economic value on a net present value basis. Since 2012, Genworth has achieved approximately $34.5 billion in net present value through premium increases and benefit reductions. Upton said about 61% of policyholders offered a benefit reduction have elected one. He also said exposure to 5% compound benefit inflation options has fallen below 36%, down from 57% in 2014, and policies with lifetime benefits now represent 11%. In response to an analyst question about the risk-based capital ratio at Genworth’s life entities, McInerney said the company targets an RBC ratio of 250 or more and is “very comfortable” with its position. Upton said the first quarter ratio of 289 remained “a good ratio,” though it was pressured by mortality, long-term care results and life insurance pressure from the post-level term block. He reiterated that the company does not expect to inject capital into its closed insurance companies. On the investment portfolio, Chief Investment Officer Kelly Saltzgaber said Genworth has minimal exposure to middle-market direct lending, with about 1% of the portfolio in middle-market loans through a separately managed account with an external manager. She said the company’s private investments are “almost exclusively investment grade,” except for that middle-market loan exposure. McInerney also provided an update on the AXA litigation, saying an appeal hearing is scheduled for July 21 through July 23. If the judgment is upheld and appeals are favorably resolved, Genworth expects to recover about $750 million, subject to exchange rates, and does not expect to pay taxes on the recovery. He said any proceeds are not included in current capital allocation plans and would be deployed toward CareScout investment, shareholder returns and debt reduction. Management said Genworth is monitoring macroeconomic uncertainty, including uneven consumer spending and the potential for higher inflation and interest rates. McInerney said the company believes it is well positioned for 2026 and beyond, supported by Enact’s free cash flow, disciplined underwriting and strong capital position. Genworth Financial (NYSE: GNW) is a leading financial security company offering a broad range of insurance products. Based in Richmond, Virginia, Genworth provides individuals and families with solutions designed to protect against long-term care expenses, secure life insurance needs and support homeownership through private mortgage insurance. With operations spanning the United States, Canada and Australia, the company serves both retail and institutional clients through a diversified portfolio of risk management services. The company's Private Mortgage Insurance (PMI) segment offers coverage to lenders and consumers in the US, Canada and Australia, enabling homebuyers to purchase properties with lower down payments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Genworth Financial Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Genworth Financial reported past first-quarter 2026 results with revenue of US$1,777 million and net income of US$47 million, alongside earnings per share of US$0.12, all slightly lower than a year earlier. The company also advanced its capital return and growth plans, completing over 5% in share repurchases under its 2025 buyback, while highlighting Enact’s contribution and expansion of its Care Scout platform. Next, we’ll examine how Genworth’s continued share repurchases and capital allocation choices shape the company’s investment narrative for investors. Capitalize on the AI infrastructure supercycle with our selection of the 40 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own Genworth today, you have to be comfortable with a story that leans on disciplined capital returns, a still‑complex legacy insurance book and newer growth initiatives like Enact and CareScout. The latest quarter keeps that story intact rather than transforming it: revenue and earnings softened slightly, but operating cash flow improved and management kept leaning into buybacks, retiring just over 5% of shares under the current program. That supports per‑share metrics in the near term, even as profitability and return on equity remain modest and below many peers. Short‑term catalysts still center on how aggressively Genworth continues repurchases and whether Enact and CareScout can keep pulling more weight. The earnings slip is unlikely to be a major turning point, but it does keep execution risk firmly in focus. However, the combination of a rich earnings multiple and low returns is something investors should understand. Genworth Financial's shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value. Simply Wall St Community members currently cluster around a single fair value estimate near US$1.05, while our earlier discussion highlights execution risk around buybacks and lean profitability that could sway how you interpret such a low anchor. Explore another fair value estimate on Genworth Financial - why the stock might be worth less than half the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Genworth Financial research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision. Our free Genworth Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Genworth Financial's overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: Invest in the nuclear renaissance through our list of 91 elite nuclear energy infrastructure plays powering the global AI revolution. Rare earth metals are the new gold rush. Find out which 33 stocks are leading the charge. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GNW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Tuesday, Feb. 24, 2026 at 9:00 a.m. ET President and Chief Executive Officer — Thomas McInerney Chief Financial Officer — Jerome Upton Head of Investor Relations — Christine Jewell President and Chief Executive Officer, Closed Block Insurance — Jamala Arland General Counsel — Gregory Karawan Chief Investment Officer — Kelly Saltzgaber Chief Executive Officer, CareScout Services — Samir Shah Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good morning, ladies and gentlemen, and welcome to Genworth Financial's Fourth Quarter 2025 Earnings Conference Call. My name is Lisa, and I'll be your coordinator today. [Operator Instructions]. As a reminder, the conference is being recorded for replay purposes. [Operator Instructions]. I would now like to turn the call over to Christine Jewell, Head of Investor Relations. Please go ahead. Christine Jewell: Thank you, and good morning. Welcome to Genworth's Fourth Quarter 2025 Earnings Call. The slide presentation that accompanies this call is available on the Investor Relations section of the Genworth's website investor.genworth.com. Our earnings release and financial supplement can also be found there, and we encourage you to review these materials. Speaking today will be Thomas McInerney, President and Chief Executive Officer; and Jerome Upton, Chief Financial Officer. Following our prepared remarks, we will open the call for questions. In addition to our speakers, Jamala Arland, President and CEO of our Closed Block Insurance business; Gregory Karawan, General Counsel; Kelly Saltzgaber, Chief Investment Officer; and Samir Shah, CEO of CareScout Services, will also be available to take your questions. During this morning's call, we may make various forward-looking statements. Our actual results may differ materially from such statements. We advise you to read the cautionary notes regarding forward-looking statements in our earnings release and related presentation as well as the risk factors of our most recent annual report on Form 10-K as filed with the SEC. Today's discussion also includes non-GAAP financial measures that we believe may be meaningful to investors. In our investor materials, non-GAAP measures have been reconciled to GAAP where required in accordance with SEC rules. Additionally, references to statutory results are estimates due to the timing of the statutory filings. And now I'll turn the call over to our President and CEO, Tom McInerney. Thomas McInerney: Thank you, Christine. And thank you for taking the time to join our fourth quarter earnings call this morning. Genworth reported net income of $2 million with adjusted operating income of $8 million. This quarter's results were driven primarily by strong performance from Enact, which contributed $146 million to Genworth's adjusted operating income, partially offset by a loss of $114 million in our Closed Block, primarily from LTC. Our estimated pretax statutory income for our U.S. life insurance companies was approximately $71 million for the full year, including the net favorable impacts to annuities from equity market and interest rate movements. We will provide full statutory results in our annual filings later this month. Genworth ended the quarter with a healthy liquidity position, holding $234 million of cash and liquid assets. We also continue to advance our strategic priorities in 2025. First, we continue to create shareholder value through Enact's growing market value and capital returns. Our approximately 81% ownership stake in Enact remains a key source of cash to Genworth with $407 million received in 2025, fueling our share repurchases and investments in CareScout. Supported by these strong cash flows, we continue to execute our share repurchase strategy throughout the fourth quarter, making progress on our $350 million authorization announced in September. In 2025, we repurchased $245 million of shares. Since May 2022, we have repurchased approximately $828 million of stock as of February 20, reducing shares outstanding by about 24% from 511 million to 388 million. These share repurchases create meaningful long-term value for shareholders by deploying capital at prices we believe represent a discount to Genworth's intrinsic value. Turning to our second strategic priority. CareScout represents our long-term growth strategy and our vision for how aging care should work in the future. We are building an innovative consumer-focused platform that helps people understand, find and fund the quality long-term care they need while creating a capital-light, scalable, data-driven business for the future. CareScout is designed to engage families across the aging journey from navigating care decisions today to preparing for future needs. Our services business often begins with adult children helping their parents find care, many of whom will become the next generation of long-term care insurance customers. Our insurance products are being built with that in mind, combining financial protection with access to personalized services when customers and their family members need them the most. This integrated approach allows us to support families in moments of urgency while building long-term relationships and recurring revenue streams. Underpinning it all is continued investment in technology and AI. We are leveraging and plan to continue exploring additional capabilities for AI-enabled tools and automation to improve human-centered customer service at scale in order to strengthen underwriting risk management and enable more efficient capital deployment and product development and marketing. Together, these and other capabilities will position CareScout to lead in a large and growing addressable market and to redefine how long-term care is delivered over time. Let's begin with a closer look at CareScout services, where we made significant progress in 2025, maintaining a rapid pace of network expansion. The CareScout Quality Network now includes roughly 790 home care providers with more than 1,000 locations nationwide, covering 97% of the U.S. population aged 65 and older. Each provider in the network must meet CareScout's rigorous credentialing standards, ensuring quality and consistency for people who rely on our services. The team executed well in the fourth quarter, facilitating 925 matches between LTC policyholders and home care providers in our network. We ended the year with 3,255 matches nationwide, well above our original target of 2,500 and our updated estimate of 3,000 and representing a 3x increase versus 2024. In the fourth quarter, we closed the acquisition of Seniorly, a leading platform with a large network of senior living communities that helps families with care planning and placement. Integration is progressing well and is expanding our reach into the direct-to-consumer market. Seniorly's team has brought deep industry and consumer experience, accelerating our efforts to scale beyond Genworth's preexisting policyholder base and add senior living options to our network. Credentialing of major national senior living providers is underway and is expected to be complete by the end of 2026. In Care Plans, our fee-for-service offering that delivers personalized guidance, we continue to see momentum with consumers and B2B audiences. Notably, we now have the ability to deliver care plans both in person and virtually on a nationwide basis. Care plans are built on a proven and growing assessment capability, enabling faster and more consistent care recommendations at scale. We continue to expand partnerships with employee assistance programs and carriers with referral volumes exceeding our expectations in 2025. Assessment volumes continue to grow and are expected to scale over time, supported by strong operational execution and cost discipline. Care Plans and Assessments enable recurring fee-for-service revenue opportunities supported by increased capabilities due to expanded distribution across carrier, employer and EAP partnerships. In 2026, we will continue to expand the range of services CareScout offers and the number of customers we serve. As the CareScout Quality Network continues to expand and brand awareness grows, we will drive increased traction with consumers. We also expect more of Genworth's long-term care claimants to choose CQM providers, stretching policyholders' dollars further while generating claim savings for Genworth over time. Turning to the Insurance business. We successfully launched Care Assurance, CareScout's inaugural stand-alone LTC insurance product in the fourth quarter. Care Assurance is now live in 40 states with 4 more pending approval. The launch of Care Assurance reestablishes our presence in the long-term care insurance market and lays the foundation for disciplined, scalable growth. We are actively engaging with partners to broaden our distribution channels and plan to launch worksite and association group offerings later this year. Importantly, Care Assurance has been designed and priced for the long term, reflecting the evolution of the market and a more conservative and durable product structure aligned with today's LTC environment. Care Assurance will be differentiated through a variety of additional services, which create a holistic care experience for our customers and their families, such as access to the CQN, wellness support tools and care planning services. This is a unique offering in today's market, blending coverage and services in a way others don't. To support sales, we're actively educating and equipping distributors to position Care Assurance effectively with our clients. While we expect adoption to build gradually, we are confident this product will create significant value for consumers and distribution partners alike. From services to insurance, CareScout is building a human-centered tech-enabled platform to simplify and dignify the aging journey. Our approach combines AI and digital technology with a human touch and reflects our deep expertise in delivering high-quality, personalized support for long-term care decisions. As we expand into new care settings, products and customer segments, we'll continue to grow organically while evaluating select inorganic add-on opportunities like Seniorly. Turning to our third strategic priority. We continue to actively manage our self-sustaining customer-centric LTC, Life and Annuity legacy business. Notably, this business is now focused exclusively on serving existing policyholders with no new sales and is being managed as a closed block. Our priorities here are clear. We aim to deliver a high-quality policyholder experience, maintain capital discipline and ensure long-term sustainable risk management. We are also leveraging AI and digital technology to drive more efficient and lower cost processes around customer service and operating performance. Jerome will provide additional detail on the resegmentation of our Closed Block later in the call. Genworth secured $100 million of gross incremental LTC premium approvals in the fourth quarter and $209 million for the full year in 2025, with average premium increases of 35.6% and 38%, respectively. We are in the 13th year of our multiyear rate action plan, which has achieved $34.5 billion in net present value since 2012, driven primarily by benefit reductions and premium increases. The MYRAP continues to be our most effective lever for stabilizing our Closed Block business. Next, I'll provide a brief update on the AXA litigation. As shared on our second quarter earnings call, the U.K. High Court issued a favorable judgment in July. Santander was granted permission in October to appeal the claim on which AXA prevailed and AXA was recently granted permission to cross appeal with respect to one of the claims, which was denied. The hearing on the appeal has now been set for July 21 through 23 of this year, and we expect the Court of Appeal to reach a decision within approximately 3 to 6 months of the hearing. If the ruling is upheld, we expect our total recoveries to be approximately $750 million, subject to exchange rates at the time. We do not expect to pay taxes on this recovery and recoveries are not factored into our capital allocation plans, but if and when received, would be deployed in line with our priorities, investing in CareScout, returning capital to shareholders and reducing debt. Before I turn it over to Jerome, I'd like to briefly reflect on the broader LTC environment. Recent federal budget debates have underscored a growing bipartisan focus on health care affordability and the long-term sustainability of public programs like Medicaid, particularly as the U.S. population ages. The very high LTC-related costs continue to be a meaningful part of that conversation. As demand continues to rise much faster than available resources, families are being asked to navigate an increasingly complex care landscape for their loved ones. This dynamic reinforces our conviction that the future of LTC will require not only flexible insurance and financing options, but also greater transparency, coordination, accessibility and support services for policyholders and their families. We are designing CareScout to help aging Americans and their families understand, find and fund the long-term care they need. As the nearly 70 million baby boomers continue to age, CareScout will serve as a complete solution in a very fragmented market built for the realities of today and in the future. Now let me turn the call over to Jerome to walk you through our financials and business trends in more detail. Jerome Upton: Thank you, Tom, and good morning, everyone. I am pleased with our strong performance in 2025. We continue to advance our strategic priorities and further position the company for long-term success. Our disciplined capital allocation balanced returning capital to shareholders, reinvesting in opportunities that support long-term growth through CareScout and continuing to strengthen our financial flexibility. Enact delivered another quarter of strong performance, supported by a strong balance sheet and capital and liquidity positions with returns that enabled our own capital allocation priorities. At the same time, we continue to make meaningful progress advancing CareScout and enhance the self-sustainability of our Closed Block. I will begin this morning's discussion with our fourth quarter and full year financial results, followed by an update on our annual assumption reviews before covering our investment portfolio and an update on our holding company liquidity. Finally, I will share some guidance for 2026 before we open the call for Q&A. Before I cover the financial results in more detail, I would like to discuss the resegmentation we completed in the quarter to report our Long-Term Care, Life and Annuity businesses under a new Closed Block segment. With the launch of our new CareScout Care Assurance product, we formally ceased LTC sales in Genworth Life Insurance Company or GLIC. In recent years, there was very limited business being issued from GLIC. And now that new policies will be issued from CareScout, this new presentation better aligns with the way we run the business, including our continued commitment to manage these entities as a closed system. This is a presentation change only and does not change the economics of Long-Term Care, Life and Annuity products. We will continue to provide a breakdown of our results by product within the new Closed Block segment. Now turning to the financial results on Slide 9. Fourth quarter adjusted operating income was $8 million, driven by strong performance in Enact, offset by losses in our Closed Block and Corporate and Other. Enact delivered another strong performance in the quarter with adjusted operating income of $146 million to Genworth. The net reserve release of $60 million was higher than the prior quarter and prior year, reflecting continued strong cure performance. Our Closed Block reported an adjusted operating loss of $114 million. This was driven by LTC with an adjusted operating loss of $159 million as a result of a liability remeasurement loss related to the actual variances from expected experience or A/E as well as the net unfavorable impact of assumption updates. The unfavorable LTC A/E of $124 million pretax was driven primarily by higher claims and lower terminations in the capped cohorts. Life Insurance and Annuities reported adjusted operating income of $13 million and $32 million, respectively, both reflecting the favorable impacts of assumption updates. In Corporate and Other, we reported an adjusted operating loss of $24 million for the fourth quarter, reflecting continued investment in CareScout and ongoing holding company debt service, partially offset by favorable tax items. Turning to our full year results on Slide 10. Adjusted operating income for 2025 was $144 million, driven by Enact. 2025 was another year of strong execution and value creation at Enact with adjusted operating income to Genworth of $558 million. Genworth's share of Enact's book value, including AOCI, has increased to $4.4 billion at year-end 2025, up from $4.1 billion at year-end 2024. These results underscore Enact's continued contribution to Genworth's earnings and value. Our Closed Block segment reported an adjusted operating loss of $317 million in 2025. In LTC, the adjusted operating loss of $326 million was primarily driven by a remeasurement loss, including unfavorable A/E and cash flow assumption updates in the capped cohorts. In Life, the adjusted operating loss of $66 million for the year reflected continued block runoff, partially offset by a favorable impact from assumption updates. Annuities income of $75 million was driven by favorable assumption updates and spread income, though lower than the prior year as the block runs off. Since adopting LDTI, the Closed Block has experienced A/E losses driven by short-term experience relative to long-term assumptions. In 2025, these losses averaged $75 million per quarter, and we could continue to see losses at this level in 2026. However, results may vary with seasonal trends around the $75 million average as we typically experience net favorable impacts from higher mortality in the first quarter that trend worse through the remainder of the year. As a reminder, fluctuations in our U.S. GAAP financial results do not impact actual cash flows, long-term economics or the way we manage the Closed Block. Rounding out the full year performance, Corporate and Other reported a $97 million loss for the year, which was in line with the prior year, reflecting continued investments in CareScout and debt service expense, partially offset by favorable tax items in the current year. Now taking a closer look at Enact's performance underlying its strong financial results, beginning on Slide 11. New insurance written of $14 billion in the quarter increased versus the prior quarter and prior year. Primary insurance in-force grew slightly year-over-year to $273 billion, supported by both the growth in new insurance written and continued elevated persistency. Earned premiums in the quarter were $245 million, relatively flat to the prior quarter and prior year. As shown on Slide 12, Enact's net favorable $60 million pretax reserve release drove a loss ratio of 7%. Enact's estimated PMIERs sufficiency ratio remained strong at 162% or approximately $1.9 billion above requirements. While maintaining its strong balance sheet, Enact has continued to deliver significant capital returns to Genworth. We received $127 million from Enact in the fourth quarter. For the full year, Enact generated a total of $407 million in proceeds to Genworth, basically in line with our expectations for the year. Enact announced earlier this month that it received Board approval for a new share repurchase authorization of $500 million. Genworth will participate in the share repurchase program in order to maintain its overall ownership at approximately 81%. Enact ended the year with a strong balance sheet, well positioned for another successful year in 2026. Turning to a discussion of our Closed Block starting on Slide 13. We continue to proactively manage LTC risk and maintain and improve self-sustainability in the Closed Block through a comprehensive set of in-force management actions. Benefit reductions and premium rate increases continue to be our most effective tools for mitigating tail risk in LTC. As of the end of the fourth quarter, we have achieved approximately $34.5 billion of in-force rate actions on a net present value basis since 2012. This includes $1 billion related to rate increase approvals this year. These approvals were lower than in recent years, in line with our expectations following the large approvals we've secured previously. As part of this program, we offer a suite of options to help policyholders manage premium increases while maintaining meaningful coverage. These options enable us to reduce our exposure to certain higher cost features such as 5% compound benefit inflation options and large benefit pools. About 61% of our policyholders offered a benefit reduction have elected to take one, lowering our long-term risk. These initiatives have helped reduce our exposure to the riskiest LTC policy features. Notably, our exposure to the 5% compound benefit inflation option has decreased to less than 36%, down from 57% in 2014, and the percentage of our policies with lifetime benefits has decreased to 11%. Benefit reductions continue to provide risk resiliency beyond the point of election, helping to protect against potential assumption pressure in the future. The value recognized from benefit reductions already achieved increased by $2.3 billion in conjunction with our annual assumption updates this year and could continue to increase over time with any future changes to liability assumptions and as we approach peak claim years. Looking ahead, the remaining value we currently have left to achieve is approximately $5 billion. We will continue to work with state insurance regulators to maintain and strengthen our claims paying ability through premium rate increases while supporting customers with a wide range of benefit reduction options as demonstrated by our strong track record over the past 13 years. In addition to the rate increase program and other benefit reduction options, we're reducing risk in innovative ways through the CareScout Quality Network and our Live Well | Age Well intervention program. The CareScout Quality Network provides direct claim savings and mitigates inflation risk via provider discounts. We continue to expect to benefit from these savings of $1 billion to $1.5 billion on a net present value basis in our Closed Block. Our Live Well | Age Well program delivers value for policyholders while also driving claim savings over time by delaying the onset of a claim. We continue to see strong engagement from our policyholders participating in the program. Connecting with our policyholders on Live Well | Age Well is also an opportunity to refer them to the CareScout Quality Network, which can further reduce the risk in our closed LTC block. We remain confident in the value these initiatives are expected to deliver to our in-force management program over time, and we'll continue to monitor their progress as they mature before incorporating them into our assumptions. As we have said before, we are committed to managing GLIC and its subsidiaries as a closed system, leveraging their existing reserves and capital to cover future claims. We will not put capital into these companies. And given the long-tail nature of our LTC insurance policies with peak claim years still over a decade away, we also do not expect capital returns. Next, turning to Slide 14. We completed our annual assumption reviews for the Closed Block in the fourth quarter. We are pleased that assumptions held up in the aggregate, and we remain confident in our ability to manage these companies as a closed system. Overall, the updates resulted in a net unfavorable impact to the GAAP adjusted operating loss in the Closed Block segment of $6 million after tax. As part of this year's review, we updated the LTC healthy life and near-term cost of care inflation assumptions to better align with recent trends. These updates also recognized favorable claim termination experience and reflected continued favorable experience in the future rate increase and benefit reduction outlook. These changes resulted in a net unfavorable $47 million pretax impact to the adjusted operating loss. The favorable $15 million pretax impact to life insurance adjusted operating income was related to updates to reflect the recent interest rate environment. Annuity assumption changes resulted in a favorable $25 million pretax impact to adjusted operating income, primarily related to mortality. Impacts to statutory pretax income were primarily driven by favorable changes to the prescribed assumptions for certain universal life and term universal life products with secondary guarantees, including mortality improvement. This was partially offset by unfavorable impacts in LTC and annuities. Slide 15 shows the pretax statutory income for the U.S. life insurance companies of $3 million in the quarter, including the net favorable impact of assumption updates. On a full year basis, we had pretax income of $71 million, down from the prior year, where results included a $355 million benefit from LTC legal settlements, which were materially complete by the end of 2024. Though the total statutory earnings from in-force rate actions decreased as a result of the lower settlement benefits, we continue to see higher income from IFA premiums as we successfully execute and implement our rate increase program. GLIC's consolidated risk-based capital ratio was 300% at the end of 2025 with capital and surplus of $3.6 billion. This was down from 306% at the end of 2024, reflecting higher required capital as we continue to grow our limited partnership portfolio, partially offset by statutory earnings in the year. The cash flow testing margin in GLIC remain in the $0.5 billion to $1 billion range at the end of 2025. Our final statutory results will be available on our investor website with our annual filings at the end of this month. Turning to our investment results on Slide 16. Our portfolio continued to perform well in a dynamic market environment. We remain primarily allocated to investment-grade fixed maturities that support our long-duration liabilities. Reinvestment activity continued to benefit the portfolio with new money yields again exceeding those on sales and maturities. New investments made within our life insurance companies, including alternatives, achieved yields of approximately 6.5% for the quarter. Net investment income benefited from solid base portfolio performance, along with steady contributions from our alternative asset program. Primarily comprised of diversified private equity, our alternative assets generated approximately 9% returns for the year. We continue to monitor our commercial real estate exposure. The portfolio is concentrated in high-quality investment-grade assets with conservative office exposure and performance has remained stable. Looking ahead, our liability structure supports a stable liquidity profile, allowing us to invest for the long term, hold high-quality assets through cycles and grow alternatives prudently within regulatory limits. Next, turning to the holding company on Slide 17. We ended the year with $234 million in cash and liquid assets. When evaluating holding company liquidity for the purpose of capital allocation and calculating the buffer to our debt service target, we exclude approximately $127 million cash held for future obligations, including advanced cash payments from our subsidiaries. Moving to Slide 18. Our capital priorities remain unchanged. We will continue to invest in long-term growth through CareScout, return cash to shareholders through our share repurchase program when our share price trades below intrinsic value and opportunistically retire debt. We invested $85 million in the CareScout Insurance Company in 2025 to support regulatory requirements as we advanced our strategy to launch modern funding solutions for long-term care. Additionally, we invested approximately $50 million to fund working capital in CareScout services in 2025 as we scale the platform, expanded its customer base and positioned the business for sustainable long-term growth. We also invested $15 million through the purchase of Seniorly, and we are very pleased with the value of that investment and the progress of the integration. We continue to return significant capital to shareholders, repurchasing $245 million of shares in 2025, including $94 million in the fourth quarter at an average price of $8.66 per share. We also repurchased an additional $38 million through February 20, 2026. Finally, we also retired approximately $7 million of principal debt in 2025 for $6 million in cash, bringing our holding company debt down to $783 million. We maintain a disciplined capital structure with a cash interest coverage ratio on debt service of approximately 8x. Building on the strong execution of our strategy and disciplined capital deployment in 2025, I'll now turn to our outlook and walk through some guidance and how we'll continue this momentum into 2026. First, as indicated on this earnings call earlier this month, Enact expects to return approximately $500 million of capital to its shareholders in 2026. Based on our approximately 81% ownership position, we expect to receive around $405 million from Enact for the full year. Second, we continue to create value for our shareholders through our share repurchase program. For the full year of 2026, we expect to allocate between $175 million and $225 million to share repurchases. As we have said before, this range may vary depending on market conditions, business performance, holding company cash and our share price. Third, turning to CareScout. In the services business, building on the success of our match growth in 2025, we are targeting approximately 7,500 matches in 2026, including matches to providers in both the home care and assisted living space. In addition to matches, we are also sharing our first revenue outlook. For the full year 2026, we expect revenue of at least $25 million from the services business. This reflects growing external demand as well as the revenue contribution from our legacy insurance companies, which continue to play a meaningful role as we scale the platform. We plan to invest approximately $50 million to $55 million in CareScout services in '26 as we continue scaling the business and expanding its reach. These investments will support the continued build-out of our technology platform, the addition of new products and care settings and growth across both consumer and B2B channels. We are also deepening carrier partnerships and enhancing operational infrastructure to support higher volumes, recurring revenue and long-term scalability. Following our $85 million investment to launch CareScout Insurance in 2025, which funded regulatory capital and start-up costs, we expect our incremental investment in 2026 to be much lower. The level of investment will vary based on sales volume and mix, investment performance and operating expenses associated with scaling the business. We are pleased with the progress we've made in CareScout this year and our continued expected growth in 2026. As we have said previously, it will take time to scale these businesses and reach breakeven. In closing, we are delivering on our strategic priorities while proactively managing our liabilities and risk. As we look to the year ahead, our focus remains on driving durable growth through Enact and CareScout, which serve as the foundation of our long-term value creation strategy. Our 2025 achievements have improved Genworth's financial strength, evidenced by our ratings upgrade from Moody's and positioned us well for 2026. We have greater financial flexibility and continued confidence in our long-term strategy, including our investment in growth through CareScout, our commitment to return capital to shareholders through targeted share repurchases and opportunistic debt retirement. Now let's open up the line for questions. Operator: [Operator Instructions] I will turn the call back to Ms. Jewell to read questions received via e-mail. Christine Jewell: Thank you, Lisa. We received a question around the importance of offering both services and insurance under the CareScout umbrella and why it makes sense to invest in both at the same time. Tom, can you please provide some additional color around this one? Thomas McInerney: I think that's a very important question about CareScout's future growth. I'd start by saying the LTC market is fragmented. LTC care is very expensive and the annual cost of care inflation is significant and as shown in the CareScout cost of care survey that we've been doing for about 20 years, CareScout is the only LTC competitor that can deliver the full value chain in the LTC ecosystem. First, CareScout services is focused on delivering LTC care advice, providing assessments of LTC care needs, working with families to develop care plans and providing access to the extensive and cost-efficient CareScout Quality Network. CareScout services' target market is the 70 million baby boomers, 95% of whom never bought LTC insurance. CareScout services will help these baby boomers determine the care they need and help them find care providers and the 20% discounts from providers in the CareScout Quality Network will make the LTC care more affordable. For CareScout insurance, the very large population segments of the children and grandchildren of the baby boomers are about to find out how difficult it is to navigate the LTC ecosystem for their parents and grandparents as they're looking for care for them. And I think they'll be shocked at the very high cost of LTC care at $76,000 a year for home care and $125,000 in some markets for nursing home care. And we think the target market for CareScout insurance, the children and grandchildren of the baby boomers will rely on CareScout services to help their parents, and we believe they'll be interested in buying CareScout insurance and funding products to be better prepared for their own LTC care needs and the high cost when they reach their peak claim years when they're in their 80s. Samir, anything you want to add to that? Samir Shah: Tom, thank you for that holistic contextual answer. I agree. Look, we're in the middle of an aging crisis, which many 70-year-old-plus population are feeling. And as we talk to the generation that follows after them, they are watching their long-term needs play out in front of them. Our ability to support consumers through both aspects of this through the history we've had over the last 40 years of supporting aging consumers and playing claims gives us a unique perspective to how consumers age and help them across their family needs, helping aging parents and in-laws with our services offering and then creating a lineup of insurance products that help folks with funding needs and services needs as they age through the process. Christine Jewell: Great. Thank you, Tom and Samir, for that additional context. So Lisa, I'll turn the call back over to you, please, to take any live questions. Operator: [Operator Instructions] It appears that there are no questions at this time. Ladies and gentlemen, I will turn the call back over to Mr. McInerney for closing comments. Thomas McInerney: Thank you very much, Lisa. And in closing, I want to say we're pleased with the strong progress we've made across Genworth's 3 strategic priorities in 2025, supported primarily by Enact's performance and we're excited to continue executing on those priorities in 2026. We're confident in our ability to maintain this momentum and deliver on our objectives going forward. And I want to thank all of you who joined the call today and your investment and interest in Genworth, and we look forward to talking to you again next quarter. Operator: And ladies and gentlemen, this concludes Genworth Financial's Fourth Quarter Conference Call. Thank you for your participation. At this time, the call will end. 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