Genworth Financial Q2 Earnings Call Highlights

Genworth Financial reported second-quarter net income of $47 million, or $0.12 per share, while adjusted operating income excluding its closed block business totaled $112 million, or $0.29 per share. The company’s results were led by mortgage insurance subsidiary Enact, while losses in the closed block and continued investment in CareScout weighed on overall performance. Jerome Upton, Genworth’s interim president and chief executive officer and chief financial officer, said the company continues to focus on three priorities: generating shareholder value through Enact, building its CareScout aging-care platform, and managing the self-sustainability of its closed block of long-term care, life insurance and annuity products. Enact contributed $143 million of adjusted operating income to Genworth in the quarter. Its results included a $37 million pre-tax reserve release, reflecting what Upton described as continued strong performance and loss mitigation activity. Enact’s loss ratio was 14% for the quarter. New insurance written at Enact was $15 billion, increasing from the prior-year period due to a larger estimated market size. Primary insurance in force grew 2% year over year to $274 billion, supported by new insurance written and elevated policy persistency. Earned premiums were $245 million, up sequentially and in line with the prior-year quarter. Enact’s estimated PMIER sufficiency ratio stood at 161%, or about $1.9 billion above requirements, at the end of the second quarter. Genworth’s share of Enact’s book value, including accumulated other comprehensive income, rose to $4.4 billion from $4.3 billion at the end of the first quarter. Enact returned $103 million of capital to Genworth during the quarter. Following Enact’s earnings release, Genworth increased its estimate for full-year capital returns from Enact to between $445 million and $485 million, based on Genworth’s approximately 81% ownership position. Enact expects to return roughly $550 million to $600 million to shareholders during 2026. Genworth repurchased $62 million of shares during the second quarter at an average price of $8.74 per share, followed by another $4 million of repurchases in July. Since its buyback authorization began in May 2022, the company has repurchased approximately $922 million of stock at an average price of $6.48 per share through July 31. The company increased its 2026 share repurchase out...