Genworth Financial, Inc. Q4 FY2025 earnings call

• Strategic priorities: Create shareholder value through Enact's growth and capital returns, advance CareScout as long-term growth strategy with focus on building consumer-focused platform, actively manage self-sustaining legacy LTC, Life and Annuity business.
• Enact: Strong performance with new insurance written, in-force growth, earned premiums, net favorable reserve release, significant capital returns to Genworth.
• CareScout: Made progress in 2025 with CareScout Quality Network expansion, acquisition of Seniorly, momentum in Care Plans, expansion of services and customers in 2026 planned.
• Insurance business: Launched Care Assurance LTC product, engaged with partners for distribution, educating distributors.
• Closed Block: Actively managed LTC risk with benefit reductions and premium increases, achieved $34.5 billion in net present value since 2012, annual assumption reviews held up overall.
• AXA litigation: U.K. High Court favorable judgment, appeal hearing set for July 21 - 23, 2026, expect Court of Appeal decision in 3 - 6 months, total recoveries ~$750 million if ruling upheld.

Genworth reported net income of $2 million with adjusted operating income of $8 million. Fourth quarter adjusted operating income was $8 million, driven by strong performance in Enact ($146 million adjusted operating income) offset by losses in Closed Block ($114 million adjusted operating loss). Full year 2025 adjusted operating income was $144 million, driven by Enact ($558 million adjusted operating income to Genworth). Closed Block segment reported adjusted operating loss of $317 million in 2025. Enact had new insurance written of $14 billion in Q4, primary insurance in-force $273 billion, earned premiums $245 million. Closed Block had LTC adjusted operating loss of $326 million, Life adjusted operating loss of $66 million, Annuities income of $75 million. Enact received $127 million in Q4 from Genworth, full year 2025 received $407 million. Closed Block had net unfavorable impact to GAAP adjusted operating loss of $6 million after tax from annual assumption reviews.

• Enact expects to return ~$500 million of capital to shareholders in 2026, Genworth expects to receive ~$405 million.
• Genworth expects to allocate between $175 million and $225 million to share repurchases in 2026.
• CareScout targets ~7,500 matches in 2026, expects revenue of at least $25 million from services business in 2026, plans to invest ~$50 million to $55 million in CareScout services in 2026.

• Uncertainty around AXA litigation appeal outcome. Potential impact on total recoveries. If appeal doesn't go as expected, could affect capital allocation plans.
• Seasonal trends in Closed Block results may cause fluctuations in financial results. Losses at ~$75 million average level possible in 2026 with seasonal variations.
• Market and economic conditions could impact Enact's performance, CareScout's growth, and the Closed Block's self-sustainability.

Q: Importance of offering both services and insurance under the CareScout umbrella and why it makes sense to invest in both at the same time A: Thomas McInerney said LTC market is fragmented, CareScout services helps baby boomers determine care needs, find providers with discounts, and CareScout insurance targets children and grandchildren of baby boomers who will need LTC care, and they'll rely on CareScout services and be interested in buying insurance. Samir Shah added about aging crisis and supporting consumers through both aspects with Genworth's history of supporting aging consumers