GNW

Strategic Priorities Execution

• Shareholder Value Creation via Enact: Genworth's ~81% Enact stake remains a core source of cash flow, supporting a balanced capital allocation strategy that combines share repurchases with long-term growth investments in CareScout. Through July 31, 2026, Genworth has repurchased ~$922 million worth of shares since program launch in May 2022 at an average price of $6.48 per share. Enact returned $103 million in capital to Genworth in Q2 2026.
• Long-Term Growth via CareScout: CareScout is building a comprehensive aging care platform to serve growing demand from 70 million baby boomers aged 62 to 80, via integrated care solutions, data-driven expert guidance, and technology-enabled personalized advisor support. As of Q2 end, the network includes over 1,100 home care locations, with senior living community integration underway targeting 2,000 total network locations by year-end 2026. The number of local advisors has doubled year-to-date, with coverage in 26 states, complementing the existing nationwide nurse network. Q2 2026 saw ~1,450 care matches, bringing H1 2026 total matches to ~2,950 (over double H1 2025 volumes). The Care Assurance Worksite standalone long-term care insurance product is approved for Q2 2026 launch in at least 34 states, with additional state approvals pending. This product combines long-term care cost protection with immediate access to CareScout's navigation ecosystem.
• Closed Block Risk Management: The closed block of LTC, life, and annuity products is actively managed to maintain long-term self-sustainability, with no future capital injections planned from Genworth. The Multi-Year Rate Action Plan (MIRAP) secured $46 million in gross incremental premium approvals in Q2 2026 (vs $41 million in Q2 2025), with an additional $27 million in approvals in July 2026. Cumulatively since 2012, MIRAP has delivered ~$34.8 billion in net present value of premium increases and benefit reductions. Exposure to high-risk LTC features has fallen significantly: 5% compound benefit inflation option exposure is down to 35% from 57% in 2014, and lifetime benefit policy share is down to 11% from 24% in 2014. 62% of policyholders offered benefit reductions have elected the option, lowering long-term risk.

Investment and Balance Sheet Highlights

• The investment portfolio remains conservatively positioned, with most assets held in investment-grade fixed maturities to match long-duration liabilities. New money cash invested in life insurance companies yielded ~6.2% in the quarter. The diversified alternative assets program (primarily private equity) targets ~12% returns, with Q2 2026 realizations rebounding from a slow start to the year and lifting investment income.
• Holding company liquidity at Q2 end totaled $215 million in cash and liquid assets, after excluding ~$81 million in restricted cash for future obligations. Holding company debt totaled $768 million after $10 million in principal was retired at a discount in the quarter, with a cash interest coverage ratio of ~9x.

• Enact now expects to return $550-$600 million in total capital to shareholders in 2026, meaning Genworth (81% owner) expects to receive $445-$485 million from Enact for the full year, up from prior expectations.
• Full year 2026 share repurchase guidance is updated to $225-$250 million, with the range subject to adjustment based on market conditions, business performance, holding company cash, and Genworth's share price.
• Full year 2026 CareScout Services revenue guidance is maintained at $25 million, with full year investment guidance maintained at $50-$55 million to support platform expansion, product additions, and channel growth. While match volume is currently pacing below the level needed to hit the 2026 target of 7,500 total matches, management still expects continued growth through year end.
• No additional capital investment is expected for CareScout Insurance in 2026, following the $85 million initial investment in 2025 to support product launch.
• Full year 2026 MIRAP premium approvals and benefit reductions are expected to be broadly in line with 2025 levels, contributing ~$1 billion in net present value.
• A decision on the ACSA litigation appeal is expected 3-6 months after the July 2026 hearing. If Genworth prevails, it expects to recover ~$750 million, which will be deployed per existing capital priorities (investing in CareScout, debt reduction, share repurchases).

1. Enact: Adjusted operating income of $143 million (contributing 127.7% of total adjusted operating income excluding closed block), with new insurance written of $15 billion, primary insurance in force of $274 billion (up 2% YoY), earned premiums of $245 million, and a pre-tax reserve release of $37 million. Genworth holds an approximate 81% ownership stake in Enact, and Genworth's share of Enact's book value including AOCI was $4.4 billion at quarter end.
2. CareScout (included in Corporate and Other): Generated $6 million in revenue in Q2 2026, with $12 million in total revenue for the first half of 2026. Operating losses from CareScout's growth investments contributed to the corporate segment loss.
3. Corporate and Other: Reported an adjusted operating loss of $31 million for the quarter, driven by debt service costs and growing CareScout business investments.
4. Closed Block Insurance: Reported an adjusted operating loss of $110 million, driven by a $127 million pre-tax liability remeasurement loss from actual-to-experience (A-to-E) variances primarily in long-term care (LTC) policies.

• Timing of MIRAP rate increase approvals from regulators is difficult to predict, which could impact the pace of closed block risk reduction.
• A-to-E loss experience for LTC policies in H1 2026 has trended above management's full year expectation of ~$300 million; if current trends continue, full year A-to-E losses will be higher than expected.
• Litigation outcome for the ACSA appeal is inherently uncertain, with no guarantee of a favorable ruling or recovery.
• Scaling the CareScout business to achieve profitability will take extended time, and requires sustained investment that may not deliver expected returns.
• The long-tailed nature of LTC policies means peak claim years remain over a decade away, creating ongoing uncertainty around closed block future liabilities.

Q: What is management's takeaway from the July ACSA litigation appeal hearing, and how would potential recovery proceeds be allocated? / A: Management reported that the hearing went as well as could be expected, but emphasized that litigation outcomes are inherently unpredictable and they will not speculate on the final ruling. Any recovery proceeds are not included in current cash plans, given this uncertainty. If proceeds are received, they will be allocated per Genworth's existing capital allocation framework: funding CareScout growth, opportunistic debt reduction, and prioritizing share repurchases if Genworth stock trades below intrinsic value, with the updated 2026 share repurchase guidance already reflecting a planned increase to repurchase activity.