Genworth Financial Inc · NYSE:GNW
Genworth Financial — Q1 2025 Earnings Presentation
22 slides from Genworth Financial's earnings presentation, May 1, 2025
Slide 1: 1Q Investor Presentation: Earnings Summary
1Q Investor Presentation Earnings Summary April 30, 2025 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation 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,”
Slide 3: Financial Performance in 1st Quarter
Financial Performance in 1st Quarter — Net income1 of $54M, or $0.13 per diluted share, and adjusted operating income1,2 of $51M, or $0.122 per diluted share — Enact reported adjusted operating income of $137M1; distributed $76M in capital returns to Genworth — U.S. life insurance companies’ RBC3 ra
Slide 4: Genworth's Strategic Pillars
Genworth’s Strategic Pillars Maintain Create Value Drive Growth Self-Sustainability Create shareholder value Maintain self-sustaining, Drive future growth through through Enact’s growing customer-centric legacy CareScout with innovative, market value and insurance companies, including consumer-focus
Slide 5: 1st Quarter Progress on Genworth's Strategic Pillars
1st Quarter Progress on Genworth’s Strategic Pillars Maintain Create Value Drive Growth Self-Sustainability $76M capital returns received from CareScout Quality Network (CQN) ~$31.3B estimated NPV2 achieved Enact, with $979M since Enact’s growth; 90% coverage4 and 576 from LTC IFAs3 since 2012 IPO1
Slide 6: 1Q25 CareScout Update
1Q25 CareScout Update CareScout Services: Growing Products and Customers Growth in CareScout Matches Started 2025 with strong progress in 1Q ‒ 34% increase in matches from 4Q24 11x Growth1 ‒ 10% increase in nationwide home care providers from 4Q24 Targeting 2,500 576 matches in 2025 430 ‒ Pilots und
Slide 7: 1Q25 Results Summary – Genworth Consolidated (GAAP)
1Q25 Results Summary – Genworth Consolidated (GAAP) Enact: $137M1 Adjusted Operating Income (Loss)1 ($M) — Continued favorable cure performance driving reserve releases — Higher investment income with higher yields and average 1Q25 4Q24 1Q24 invested assets versus the prior year 51 15 85 Long-Term C
Slide 8: Enact Segment
Enact Segment Primary IIF1 ($B) Earned Premiums ($M) 268 269 264 245 246 241 1Q25 4Q24 1Q24 1Q25 4Q24 1Q24 Primary NIW 9,818 13,266 10,526 Portfolio up 2% year-over-year driven by new insurance Earned premiums were higher versus prior year as higher written (NIW) and continued elevated persistency a
Slide 9: Enact Segment
Enact Segment Benefits & Changes in Sufficiency to PMIERs2 ($M) Policy Reserves ($M) (Benefit) / Loss 165% 167% 163% $31 $24 $20 1,966 2,052 1,883 1Q25 4Q24 1Q24 Loss Ratio 12% 10% 8% Primary Delqs (#) 22,349 23,566 19,492 Primary New Delqs (#) 12,237 13,717 11,395 Primary Paid Claims (#) 179 191 17
Slide 10: Proactively Managing LTC Risk
Proactively Managing LTC Risk Effective in-force management proactively addresses risk in the legacy LTC block by building • resiliency, with focus on 3 key areas: 1 MYRAP1 Progress — The MYRAP continues to be the most effective tool for maintaining ~$31.3B Estimated NPV Achieved since 2012 self-sus
Slide 11: U.S. Life Statutory Results
U.S. Life1 Statutory Results Statutory Pre-Tax Income (Loss)2,3 ($M) 1Q25 4Q24 1Q24 LTC Statutory Pre-Tax Income (Loss) ($M) Long-Term Care Insurance 50 (78) 151 Total 50 (78) 151 Life Insurance (34) 49 (18) 462 Annuities (17) (4) 125 Earnings From IFAs4 340 355 Combined Statutory Pre-Tax Income (Lo
Slide 12: Investment Portfolio Holdings
Investment Portfolio Holdings1 Composition of Portfolio Fixed Maturities by Sector Fixed Maturity Securities Sector Fair Value ($B) % Of Total $60.6B Government & Municipal 6.8 15% Residential & Commercial MBS3 2.2 5% Other Asset-Backed Securities 2.2 5% Fixed Maturities Corporate Bond Holdings: Fix
Slide 13: Holding Company Cash & Liquid Assets
Holding Company Cash & Liquid Assets1 ($M) 76 (45) (8) (106) 2942 2112 12/31/24 Enact capital returns Share repurchases Debt service Other items 3/31/25 $76M in capital returns from Enact received in 1Q25 — $23M from quarterly dividend and $53M in share repurchase proceeds $45M in share repurchases
Slide 14: Capital Allocation & Shareholder Returns
Capital Allocation & Shareholder Returns Capital Allocation Priorities Share Repurchase Program 1 Invest in long-term growth — CareScout Services: Funding to continue through 2025 to Inception of Share support expansion to other LTC carriers, scale for tech- Repurchase Program enabled platform, and
Slide 15: Appendix
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Slide 16: LTC In-Force Rate Action Progress
LTC In-Force Rate Action Progress Approvals & Filings Cumulative Policyholder Responses1 Approved Filings 2023 2024 1Q24 1Q25 52.7% 58.7% 59.3% State Filings Approved (#) 117 97 23 19 NFO2 30.5% 32.7% 33.0% Impacted In-Force Premium ($M) 697 870 166 85 Weighted Average % Rate Increase RBO3 26.0% 26.
Slide 17: LTC Claims Trends by Product – Statutory
LTC Claims Trends by Product – Statutory LTC Direct Paid Claims by Product ($M) — Paid claims on newer products 2,723 continue to increase as 2,484 125 policyholders approach peak claim 105 472 Flex, MFMP, & 2,244 age, as claims on the older products Group 86 380 past peak claim age decline Avg Age
Slide 18: LTC In-Force Policy Information
LTC In-Force1 Policy Information Total As of 3/31/25 Pre PCS PCS I PCS II Choice I2 Choice II PC Flex MFMP3 PC Flex II PC Flex III Individual Group Total Issue Years 1974-1994 1994-1997 1997-2001 2001-2007 2003-2011 2011-2014 2009-2013 2013-2017 2014+ 1999+ 4 Annual Premium ($M) 27 71 248 634 980 26
Slide 19: Use of Non-GAAP Measures
Use of Non-GAAP Measures Management evaluates performance and allocates resources based on a non-GAAP financial measure entitled "adjusted operating income (loss)." Management evaluates adjusted operating income (loss) as a key • measure to assess performance and support new business initiatives bec
Slide 20: Reconciliation of Net Income (Loss) to Adjusted Operating Income
Reconciliation of Net Income (Loss) to Adjusted Operating Income 2025 1Q 4Q 2024 1Q NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S ($M) COMMON STOCKHOLDERS $ 54 $ (1) $ 139 Add: net income attributable to noncontrolling interests 31 31 30 NET INCOME 85 30 169 Less: loss from discontinued
Slide 21: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation 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,”
Slide 22: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • the inability to effectively manage information 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 u