Genworth Financial Announces Third Quarter 2024 Results

In This Article:

Strategic Highlights

  • Continued progress on the LTC1 multi-year rate action plan (MYRAP) with $124M of gross incremental premium approvals; approximately $30B estimated net present value achieved from in-force rate actions (IFAs) since 2012

  • Expanded the CareScout Quality Network to 49 states through October, covering over 75% of the aged 65-plus Census population in the United States; on track to achieve 80% to 85% coverage by year-end

  • Executed $36M in share repurchases in the quarter; $144M executed year-to-date through October at an average price of $6.29 per share

  • Repurchased $17M in principal of holding company debt at a discount

Financial Highlights

  • Net income2 of $85M, or $0.19 per diluted share, and adjusted operating income2,3 of $48M, or $0.11 per diluted share

  • Enact reported adjusted operating income of $148M2; distributed $81M in capital returns to Genworth

  • U.S. life insurance companies’ RBC4 ratio of 317%5 reflects strong year-to-date statutory pre-tax income

  • Genworth holding company cash and liquid assets of $369M6 at quarter-end

RICHMOND, Va., November 06, 2024--(BUSINESS WIRE)--Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended September 30, 2024.

"Genworth made substantial progress against our strategic priorities in the third quarter, supported by strong performance and capital returns from Enact," said Tom McInerney, President & CEO. "The expansion of the CareScout Quality Network is progressing ahead of schedule, and we are excited about our plan to bring a CareScout insurance offering to market next year to help meet increasing demand for long-term care funding solutions. While laying the foundation for future growth, we remain committed to returning capital to shareholders through our share repurchase program and advancing our multi-year rate action plan to improve the financial condition of our legacy LTC business."

Consolidated Metrics

 

 

Q3 2024

 

Q2 2024

 

Q3 2023

 

(Amounts in millions, except per share data)

 

 

 

 

 

Net income2

 

 

$

85

 

$

76

 

$

29

 

Earnings per diluted share2

 

 

$

0.19

 

$

0.17

 

$

0.06

 

Adjusted operating income2,3

 

 

$

48

 

$

125

 

$

42

 

Adjusted operating income per diluted share2,3

 

 

$

0.11

 

$

0.28

 

$

0.09

 

Weighted-average diluted shares

 

 

 

435.8

 

 

440.7

 

 

466.0

 

Consolidated GAAP Financial Highlights

  • Net income in the quarter was driven by Enact, which had very strong operating performance

  • Net investment gains, net of taxes, increased net income by $52 million in the current quarter, compared with net investment losses of $48 million in the prior quarter and $34 million in the prior year. The investment gains in the current quarter were driven primarily by mark-to-market adjustments on limited partnerships and equity securities

  • Changes in the fair value of market risk benefits and associated hedges, net of taxes, decreased net income by $17 million in the quarter driven primarily by an unfavorable change in interest rates, compared with increases of $6 million in the prior quarter and $19 million in the prior year

  • Net investment income, net of taxes, was $614 million in the quarter, down from $638 million in the prior quarter driven by lower income from policy loans and U.S. Government Treasury Inflation-Protected Securities (TIPS)

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