Genworth Financial Inc · NYSE:GNW
Genworth Financial — Q4 2024 Earnings Presentation
26 slides from Genworth Financial's earnings presentation, Feb 5, 2025
Slide 1: 4Q Investor Presentation Earnings Summary
4Q Investor Presentation Earnings Summary February 18, 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 4th Quarter
Financial Performance in 4th Quarter — Net loss1 of $1M, and adjusted operating income1,2 of $15M in the fourth quarter — Enact reported adjusted operating income of $137M1 in the fourth quarter; distributed $84M in capital returns to Genworth — Completed annual assumption updates with unfavorable i
Slide 4: 4th Quarter Progress on Genworth's Strategic Pillars
4th Quarter Progress on Genworth’s Strategic Pillars 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, consumer-focused aging care capital returns including t
Slide 5: CareScout Quality Network Build-Out
CareScout Quality Network Build-Out 4Q24 CareScout Update Percentage of Aged 65+ U.S. Census Coverage, Number Strong continued progress for CareScout Services in 2024 of Network Providers and Number of Active States hitting several key objectives 100% 600 ‒ CQN nationwide with ~500 providers and 86%
Slide 6: 4Q24 Results Summary – Genworth Consolidated (GAAP)
4Q24 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 4Q24 3Q24 4Q23 invested assets versus the prior year 15 48 (230) Long-Ter
Slide 7: 2024 YTD Results Summary – Genworth Consolidated (GAAP)
2024 YTD Results Summary – Genworth Consolidated (GAAP) Enact: $585M1 Adjusted Operating Income (Loss)1 ($M) — Higher investment income with higher yields and average invested assets — Continued favorable cure performance driving reserve releases 2024 2023 Long-Term Care Insurance: $(176)M 273 41 —
Slide 8: Enact Segment
Enact Segment Primary IIF1 ($B) Earned Premiums ($M) 269 268 263 246 249 240 4Q24 3Q24 4Q23 4Q24 3Q24 4Q23 Primary NIW 13,266 13,591 10,453 Portfolio up 2% year-over-year driven by new insurance Earned premiums were lower versus prior quarter driven by written (NIW) and continued elevated persistenc
Slide 9: Enact Segment
Enact Segment Benefits & Changes in Sufficiency to PMIERs2 ($M) Policy Reserves ($M) (Benefit) / Loss 167% 173% 4Q24 3Q24 4Q23 161% $24 $24 2,190 $12 2,052 1,887 Loss Ratio 10% 5% 10% Primary Delqs (#) 23,566 21,027 20,432 Primary New Delqs (#) 13,717 12,964 11,706 Primary Paid Claims (#) 191 220 18
Slide 10: Proactively Managing LTC Risk
Proactively Managing LTC Risk Stabilizing LTC legacy block through the MYRAP to protect claims-paying ability Focused on cash flows, economic value, and statutory earnings — GAAP results do not impact cash flows or economic value Approximately $31.2B2 in estimated net present value achieved since 20
Slide 11: Value of Rate Action Program (GLIC + GLICNY)
Value of Rate Action Program (GLIC + GLICNY) • Estimated NPV of rate actions since 2012 through 12/31/24 ($B) Total Value from MYRAP Value Achieved to Date 35.8 2024 +2.5 31.2 2024 +3.2 2023 33.3 +2.5 2023 28.0 +2.5 The MYRAP is the most effective tool to ensure the $2.1B rate increase approvals and
Slide 12: LTC In-Force Rate Action Progress
LTC In-Force Rate Action Progress Approvals & Filings Cumulative Policyholder Responses1 58.3% Approved Filings 2022 2023 2024 44.1% 45.5% 50.9% 37.3% 22.0% 28.3% State Filings Approved 139 117 97 NFO 11.6% 16.4% 18.0% Impacted In-Force Premium ($M) 1,143 697 870 27.7% 27.5% 28.9% 30.0% RBO 25.7% We
Slide 13: Impact of In-Force Rate Actions on Pre-Tax LTC Statutory Earnings
Impact of In-Force Rate Actions on Pre-Tax LTC Statutory Earnings1,2,3 LTC Statutory Pre-Tax Earnings ($M) 394 910 257 79 170 Earnings From In-Force Rate Actions4 Reserve Changes, Net Legal Settlement Impacts, Net Premiums, Premium Tax, Commissions, Other Expenses, Net Earnings Excluding In-Force Ra
Slide 14: LTC Annual Assumption Review
LTC Annual Assumption Review 4Q24 FINANCIAL IMPACTS Accounting Basis Impacts GAAP Assumption changes resulted in a $20M unfavorable pre-tax adjustment for cash flow updates Cash flow testing reserve in GLICNY increased by $79M Statutory Net favorable impact to statutory earnings of $20M pre-tax from
Slide 15: Life and Annuities Annual Assumption Review
Life and Annuities Annual Assumption Review 4Q24 FINANCIAL IMPACTS Accounting Basis Impacts Life insurance assumption updates resulted in a $28M unfavorable pre-tax adjustment in universal life (UL) and term UL products GAAP Annuity assumption changes resulted in a $18M1 unfavorable pre-tax adjustme
Slide 16: U.S. Life Statutory Results
U.S. Life1 Statutory Results Statutory Pre-Tax Income2,3 ($M) Capital & Surplus2 ($B) and RBC Ratio2 306% 317% $148 303% 3.7 3.5 3.4 ($33) ($18) 4Q24 3Q24 4Q23 Long-Term Care Insurance (78) (9) (9) Life Insurance 49 (29) 82 Fixed Annuities 6 3 16 4Q24 3Q24 4Q23 Variable Annuities (10) 17 59 Capital
Slide 17: Investment Portfolio Holdings
Investment Portfolio Holdings1 Composition of Portfolio Fixed Maturities by Sector Fixed Maturity Securities Sector Fair Value ($B) % Of Total $60.0B Government & Municipal 6.6 15% Residential & Commercial MBS3 2.1 5% Other Asset-Backed Securities 2.1 5% Fixed Maturities Corporate Bond Holdings: Fix
Slide 18: Holding Company Cash & Liquid Assets
Holding Company Cash & Liquid Assets1 ($M) 84 (102) 3692 (51) (27) (19) 40 2942 9/30/2024 Enact capital Net tax Share Debt retirement Debt service Other items 12/31/2024 returns payments repurchases $84M in capital returns from Enact received in 4Q24 - $23M from quarterly dividend and $61M in share
Slide 19: Capital Allocation & Shareholder Returns
Capital Allocation & Shareholder Returns Capital Allocation Priorities Invest in long-term growth Share Repurchase Program — Continued investment in CareScout Services; Plan to make investment in CareScout Insurance as it enters the market in 2025 — CQN is available in 50 states through December and
Slide 20: Appendix
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Slide 21: LTC Claims Trends by Product – Statutory
LTC Claims Trends by Product – Statutory Paid claims on newer products continue to increase as policyholders approach LTC Direct Paid Claims by Product ($M) peak claim age, as claims on the older 2,723 products past peak claim age decline 125 Flex, MFMP, & 2,484 Group 105 2,244 472 Lower claim payme
Slide 22: LTC In-Force Policy Information
LTC In-Force1 Policy Information Total as of 12/31/24 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+ Annual Premium ($M)4 27 74 250 631 970 26
Slide 23: Use of Non-GAAP Measures
Use of Non-GAAP Measures Management evaluates performance and allocates resources based on a non-GAAP financial measure entitled "adjusted operating income (loss).“ Management evaluates adjusted operating income (loss) as a key • measure to assess performance and support new business initiatives bec
Slide 24: Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss) 2024 2023 4Q 3Q Full Year 4Q Full Year ($M) (unaudited) (unaudited) (unaudited) (unaudited) NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS $ (1) $ 85 $ 299 $ (212) $ 76 Add: net income attributable
Slide 25: 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 26: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • 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