Genworth Financial Inc · NYSE:GNW
Genworth Financial — Q1 2024 Earnings Presentation
21 slides from Genworth Financial's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Earnings Summary
First Quarter 2024 Earnings Summary May 1, 2024 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: Genworth Strategic Pillars
Genworth Strategic Pillars Purpose: To help families navigate the aging journey with confidence Vision: To be compassionate, experienced allies for those navigating care now and in the future, with guidance, products and services that meet families where they are in the aging journey STRATEGIC PILL
Slide 4: Highlights for the 1st Quarter of 2024
Highlights for the 1st Quarter of 2024 Strategic Executed $63M in share repurchases in the quarter; $434M in total executed through April 30, 2024, at an average price of $5.42 per share Enact announced an increase to its quarterly dividend, as well as a new share repurchase program with authorizati
Slide 5: 1Q24 Results Summary – Genworth Consolidated (GAAP)
1Q24 Results Summary – Genworth Consolidated (GAAP) Enact: $135M1 Adjusted Operating Income (Loss)1 ($M) — Continued strong loss performance — Higher investment income with higher yields and average invested assets versus the prior year 1Q24 4Q23 1Q23 Long-Term Care Insurance: $3M 85 (230) 144 — Cur
Slide 6: Enact Segment
Enact Segment Primary IIF1 ($B) Earned Premiums ($M) 264 263 253 241 240 235 1Q24 4Q23 1Q23 1Q24 4Q23 1Q23 Primary NIW 10,526 10,453 13,154 Portfolio up 4% year-over-year driven by new insurance Earned premiums were higher versus prior year as IIF growth written (NIW) and continued elevated persiste
Slide 7: Enact Segment
Enact Segment Benefits & Changes in Sufficiency to PMIERs2 ($M) Policy Reserves ($M) (Benefit) / Loss 163% 161% 164% $20 $24 ($11) 2,098 1Q24 4Q23 1Q23 1,883 1,887 Loss Ratio 8% 10% (5)% Primary Delqs (#) 19,492 20,432 18,633 Primary New Delqs (#) 11,395 11,706 9,599 Primary Paid Claims (#) 172 186
Slide 8: Proactively Managing LTC Insurance Risk
Proactively Managing LTC Insurance 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 $28.3B in net present value achieved since 201
Slide 9: LTC In-Force Rate Action Progress
LTC In-Force Rate Action Progress Approvals & Filings Cumulative Policyholder Responses since 2012 Approved Filings 2022 2023 1Q23 1Q24 44.1% 45.5% 50.9% 53.1% State Filings Approved 139 117 23 23 37.3% Impacted In-Force Premium ($M) 1,143 697 78 166 16.4% 18.0% 22.0% 23.7% NFO 11.6% Weighted Averag
Slide 10: 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 ($M) 394 910 257 79 138 151 1,669 1,585 1,482 1,269 Earnings From In-Force Rate Actions4 757 843 906 684 Premiums, Premium Tax, Commissions, Other 378 350 462 150 263 Expenses, Net 585 534 489 219 2
Slide 11: U.S. Life Statutory Results
U.S. Life1 Statutory Results Statutory Pre-Tax Income2,3 ($M) Capital & Surplus2 ($B) and RBC Ratio2 $258 314% 303% $192 295% $148 3.5 3.4 3.2 1Q24 4Q23 1Q23 Long-Term Care Insurance 151 (9) 138 Life Insurance (18) 82 (23) Fixed Annuities 17 16 25 1Q24 4Q23 1Q23 Variable Annuities 108 59 52 Capital
Slide 12: Investment Portfolio Holdings
Investment Portfolio Holdings1 Composition of Portfolio Fixed Maturities by Sector Fixed Maturity Securities Sector Fair Value ($B) % Of Total $61.0B Government & Municipal 6.3 14% Residential & Commercial MBS3 2.2 5% Other Asset-Backed Securities 2.3 5% Fixed Maturities Corporate Bond Holdings: Fix
Slide 13: Holding Company Cash & Liquid Assets
Holding Company Cash & Liquid Assets1 ($M) Variance (97) 61 (63) 350 (12) (5) (78) 253 12/31/2023 Enact capital Share repurchases Debt service Debt retirement Other items 3/31/2024 returns Received $61M in capital returns from Enact: $21M quarterly dividend and $40M share repurchases Completed $63M
Slide 14: Capital Allocation & Shareholder Returns
Capital Allocation & Shareholder Returns Capital Allocation Priorities Share Repurchase Program Invest in long-term growth — Targeting $35M investment to CareScout Services in 2024; invested approximately $30M in 2023 Inception of Share — CareScout Quality Network, a network of long-term care Repurc
Slide 15: Appendix
dix en App se orths,< Ww Gen
Slide 16: LTC Claims Trends by Product – Statutory
LTC Claims Trends by Product – Statutory LTC Direct Paid Claims by Product ($M) Paid claims on newer products continue to increase as policyholders approach peak claim age, as claims on the older 2,484 products past peak claim age decline 105 Flex, MFMP, & 2,196 2,244 Group 72 2,098 86 380 Reduced c
Slide 17: LTC In-Force Policy Information
LTC In-Force1 Policy Information Choice I2 3 as of 3/31/24 Pre PCS PCS I PCS II Choice II PC Flex MFMP PC Flex II PC Flex III 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 ($M) 30 80 266 635 1,023 256 95 70 34 141
Slide 18: Use of Non-GAAP Measures
Use of Non-GAAP Measures Management uses non-GAAP financial measures entitled "adjusted operating income (loss)" and "adjusted operating income (loss) per share” to evaluate performance and allocate resources. Adjusted operating • income (loss) per share is derived from adjusted operating income (lo
Slide 19: Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss) (Unaudited) 2024 2023 1Q 4Q 1Q ($M) NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS $ 139 $ (212) $ 122 Add: net income attributable to noncontrolling interests 30 29 32 NET INCOME (LOSS) 169 (183)
Slide 20: 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 21: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • 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 cancellati