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Genworth Financial Inc (NYSE:GNW) released its second quarter 2025 investor presentation on July 30, revealing mixed performance across its business segments. The insurance holding company reported net income of $51 million, or $0.12 per diluted share, and adjusted operating income of $68 million, or $0.16 per diluted share. In after-hours trading, Genworth shares declined 0.5% to $7.96.
Quarterly Performance Highlights
Genworth’s financial results for the second quarter showed continued strength in its Enact mortgage insurance business, while its long-term care (LTC) segment faced challenges. The company maintained a solid capital position with holding company cash and liquid assets of $248 million at quarter-end.
As shown in the following financial performance summary:
The company received $94 million in capital returns from Enact during the quarter, bringing the total capital returns from Enact to over $1 billion since its IPO. Genworth also continued its share repurchase program, executing $30 million in buybacks during Q2, with program-to-date repurchases totaling $620 million through June 30, 2025.
Segment Performance Analysis
Enact remained the standout performer for Genworth, reporting adjusted operating income of $141 million. The segment benefited from strong cure performance and maintained a solid capital position with a PMIERs sufficiency ratio of 165%, representing $1.96 billion above requirements.
The company’s segment results are illustrated in the following chart:
In contrast to Enact’s strong performance, the Long-Term Care Insurance segment reported a loss of $37 million, reflecting a remeasurement loss. The Life and Annuities segment posted a $7 million loss, with Life insurance showing a $20 million loss partially offset by Annuities income of $13 million. The Corporate and Other segment recorded a $29 million loss, driven by continued investment in CareScout and debt service.
Enact’s primary insurance in force increased 1% year-over-year to $270 billion, driven by new insurance written and continued elevated persistency. Primary new insurance written increased 35% compared to the prior quarter, reflecting seasonal trends.
The mortgage insurance segment maintained strong performance metrics with a loss ratio of 10% and paid claims of 218, while experiencing 11,580 primary cures during the quarter.
Strategic Initiatives
Genworth continues to focus on its three strategic pillars: creating shareholder value through Enact, maintaining self-sustainability in legacy insurance businesses, and driving future growth through CareScout.
The company highlighted significant progress in its CareScout business, which saw a 40% increase in matches versus the prior quarter and an 18% increase in nationwide home care providers since March 31, 2025.
In its long-term care business, Genworth continues to proactively manage risk through its Multi-Year Rate Action (WA:ACT) Plan (MYRAP) and other initiatives. The company has achieved an estimated net present value of $31.6 billion from in-force rate actions since 2012 and secured $41 million of gross incremental LTC premium approvals in Q2.
The U.S. life insurance companies maintained a risk-based capital (RBC) ratio of 304%, reflecting strong statutory earnings that offset higher required capital as the limited partnership portfolio grows.
Capital Allocation & Outlook
Genworth’s capital allocation strategy balances investing in long-term growth, returning capital to shareholders, and managing debt. The company executed $75 million in share repurchases year-to-date through June 30, 2025, with $80 million remaining in its share repurchase authorization.
The following chart illustrates the company’s holding company cash and liquid assets:
Looking forward, Genworth continues to invest in CareScout Services and CareScout Insurance as key growth drivers. The inaugural LTC product has been approved in 29 jurisdictions, and the company is preparing for a 2025 return to the market.
The company maintains a strong investment portfolio with $45.7 billion in fixed maturities, representing 75% of the total portfolio. The unrealized loss position improved to $3.0 billion as of June 30, 2025, compared to $3.2 billion at the end of the previous quarter. Notably, 97% of total fixed maturities are rated BBB or higher, indicating a high-quality portfolio despite exposure to commercial real estate at approximately 15% of the total portfolio.
Genworth’s Q2 results follow a first quarter that saw the company miss analyst expectations with an EPS of $0.12 against a forecast of $0.18. The continued EPS of $0.12 in the second quarter suggests ongoing challenges in translating Enact’s strong performance into overall earnings growth, as investments in growth initiatives and legacy business challenges offset gains.
Full presentation:
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