Net Income of $62 Million and Adjusted
Operating Income of $84 Million
- Enact segment adjusted operating income of $143M; PMIERs1
sufficiency ratio of 164%2
- Continued progress on long-term care insurance (LTC) multi-year
rate action plan, with approximately $23.8B net present value
achieved from in-force rate actions (IFAs) since 2012
- LTC adjusted operating loss of $(37)M and Life and Annuities
adjusted operating loss of $(4)M
- U.S. life insurance companies’ statutory pre-tax income3 of
$192M2 driving RBC4 ratio of 295%2
- Genworth holding company cash and liquid assets of $233M at
quarter-end
- Executed $68M in share repurchases in the quarter; $182M in
total executed through April 2023 at an average price less than
$5.00 per share
Genworth Financial, Inc. (NYSE: GNW) today reported results for
the quarter ended March 31, 2023.
“I am pleased with our performance as we continue to execute our
strategy. Genworth’s recent achievements enable us to further
refine our priorities to maximize long-term shareholder value by
allocating capital from Enact, launching our CareScout services
business, and stabilizing LTC through our multi-year rate action
plan. As we continue to execute on our priorities, we will be
well-positioned to continue returning capital to shareholders.” –
Tom McInerney, President & CEO
Consolidated Metrics
(Amounts in millions, except per share
data)
Q1 2023
Q1 2022
Net income5
$62
$191
Earnings per diluted share5
$0.12
$0.37
Adjusted operating income5,6
$84
$120
Adjusted operating income per diluted
share5,6
$0.17
$0.23
Weighted-average diluted shares
500.1
517.4
Consolidated GAAP Financial
Highlights
- Effective January 1, 2023 the company changed its operating
segments to better align with how it currently manages the
business. Financial information has been updated for all
periods
- On January 1, 2023 the company adopted new GAAP accounting
guidance that significantly changed the recognition and measurement
of long-duration insurance contracts, commonly known as
long-duration targeted improvements (LDTI). The accounting change
impacted the Long-Term Care Insurance and Life and Annuities
segments. There was no impact to the Enact segment, Corporate and
Other or statutory accounting. All prior periods have been
re-presented to reflect this accounting change
- Net income was driven by Enact, which had very strong operating
performance resulting from favorable loss performance
- Net investment losses, net of taxes, decreased net income by $9
million in the current quarter, compared with net investment gains
in the prior year. Changes in fair value of market risk benefits,
net of taxes and other adjustments, decreased net income by $11
million in the current quarter compared with an increase of $43
million in the prior year
- Adjusted operating income reflects Enact’s very strong
operating performance, partially offset by losses in LTC, Life and
Annuities, and Corporate and Other
- Net investment income was $787 million in the quarter, an
increase from $764 million in the prior year due to higher yields
and income from limited partnerships
- Current quarter reported and core yields6 were 4.86 percent and
4.84 percent, an increase of 19 and 23 basis points, respectively,
from the prior year
- The effective tax rate on income from continuing operations was
approximately 29.3 percent in the current quarter, primarily
reflecting a higher tax rate of 35 percent on certain forward
starting swap gains, consistent with prior quarters
Enact
GAAP Operating Metrics (Dollar
amounts in millions)
Q1 2023
Q1 2022
Adjusted operating income7
$143
$135
Primary new insurance written
$13,154
$18,823
Loss ratio
(5)%
(4)%
- Adjusted operating income reflected a pre-tax benefit of $11
million from incurred losses driven by a pre-tax reserve release of
$70 million, primarily from favorable cure performance on COVID-19
delinquencies. The prior year results included a $50 million
pre-tax reserve release, primarily related to 2020 COVID-19
delinquencies
- Net investment income was $46 million pre-tax in the current
quarter, up from $35 million pre-tax in the prior year from rising
interest rates and higher average invested assets
- Primary insurance in-force increased nine percent versus the
prior year to $253 billion, driven by new insurance written (NIW)
and continued high persistency
- Primary NIW was down 30 percent versus the prior year,
primarily from lower originations as a result of elevated interest
rates
- New delinquencies increased 10 percent to 9,599 from 8,724 in
the prior year, primarily from the aging of large, new books
Capital Metric
Q1 2023
Q1 2022
PMIERs Sufficiency Ratio2,8
164%
176%
- Government-sponsored enterprises’ restrictions on Enact were
removed on March 1, 2023 after Genworth successfully satisfied
associated financial metric conditions
- Enact’s estimated PMIERs sufficiency ratio was 164 percent,
$2,098 million above requirements, and down one point from year-end
2022
- Enact announced an increase in its quarterly dividend to $0.16
per share
Long-Term Care Insurance
GAAP Operating Metrics (Amounts in
millions)
Q1 2023
Q1 2022
Adjusted operating income (loss)
$(37)
$27
Premiums
$616
$607
Net investment income
$473
$447
- Premiums related to IFAs of $240 million pre-tax, up $30
million versus the prior year
- Higher net investment income of $26 million pre-tax versus the
prior year, primarily from limited partnerships, bank loans and
higher investment yields, partially offset by lower income from
U.S. Government Treasury Inflation-Protected Securities
- Current quarter results reflected an unfavorable quarterly
assumption update related to the implementation timing of certain
IFAs
- Results also reflected higher new claims and benefit
utilization compared to the prior year. Terminations were also
elevated versus expectations, although lower than the prior
year
Life and Annuities
GAAP Adjusted Operating Income
(Loss) (Amounts in millions)
Q1 2023
Q1 2022
Life Insurance
$(27)
$(47)
Fixed Annuities
$14
$13
Variable Annuities
$9
$4
Total Life and Annuities
$(4)
$(30)
Life Insurance
- Current quarter results impacted by unfavorable mortality
experience, though improved versus the prior year as COVID-19
impacts subsided in 2023
- Results in the prior year included a $25 million pre-tax legal
settlement accrual
Annuities
- Fixed annuities results reflected higher fixed payout annuity
mortality versus the prior year, offset by lower net spreads
primarily related to block runoff
- Variable annuities reported higher adjusted operating income
from favorable impacts of the aging of the block, partially offset
by lower fee income driven by lower account value
U.S. Life Insurance Companies Statutory Results and
RBC
(Dollar amounts in millions)
Q1 2023
Q1 2022
Statutory Pre-Tax Income2,9
$192
$212
Long-Term Care Insurance
$138
$247
Life Insurance
$(23)
$(67)
Fixed Annuities
$25
$24
Variable Annuities
$52
$8
GLIC Consolidated RBC Ratio2
295%
296%
- Statutory pre-tax income estimated at $192 million for the
current quarter, driven by:
- LTC, which benefited from premium increases and benefit
reductions from IFAs, including the impacts from a legal
settlement, although lower than the prior year, but was partially
offset by unfavorable new claims growth
- Improved mortality in life insurance and prior year included
the settlement accrual of $25 million pre-tax
- Net favorable impacts from equity market and interest rate
movements related to variable annuity products
- The U.S life insurance companies estimate quarter-end RBC to be
295 percent, up from 291 percent in the prior quarter primarily
from the strong statutory earnings.
Corporate and Other
- The current quarter adjusted operating loss of $18 million was
higher versus the prior year’s adjusted operating loss of $12
million due to expenses related to the company’s new growth
initiatives with its CareScout business and higher interest expense
driven by the floating rate, subordinated debt
Holding Company Cash and Liquid Assets
(Dollar amounts in millions)
Q1 2023
Q1 2022
Holding Company Cash and Liquid
Assets10,11
$233
$215
- Cash and liquid assets of $233 million remained above the
company’s cash target of two-times annual debt service
- Cash inflows during the quarter consisted of $48 million from
intercompany taxes and $37 million from Enact capital returns,
which included a $19 million quarterly dividend and $18 million in
share repurchase proceeds
- Current quarter cash outflows included $70 million primarily
related to employee benefit payments, which are reimbursed by the
subsidiary businesses, $68 million in share repurchases and the
repurchase of $11 million principal of the company’s 2034 debt
obligation
Returns to Shareholders
- The company repurchased $68 million of its common stock at an
average price of $6.08 per share in the first quarter of 2023
- Subsequent to the first quarter of 2023, the company
repurchased an additional $50 million of its common stock at an
average price of $5.48 per share in April 2023
About Genworth Financial Genworth Financial, Inc. (NYSE:
GNW) is a Fortune 500 company focused on empowering families to
navigate the aging journey with confidence, now and in the future.
Headquartered in Richmond, Virginia, Genworth provides guidance,
products, and services that help people understand their caregiving
options and fund their long-term care needs. Genworth is also the
parent company of publicly traded Enact Holdings, Inc. (Nasdaq:
ACT), a leading U.S. mortgage insurance provider. For more
information on Genworth, visit genworth.com, and for more
information on Enact Holdings, Inc. visit enactmi.com.
Conference Call And Financial Supplement Information
Investors are encouraged to read this press release, summary
presentation and financial supplement, which are now posted on the
company’s website, http://investor.genworth.com.
Genworth will conduct a conference call on May 4, 2023 at 9:00
a.m. (ET) to discuss its first quarter results, which will be
accessible via:
- Telephone: 888-208-1820 or 323-794-2110 (outside the U.S.);
conference ID # 9246072; or
- Webcast:
https://investor.genworth.com/news-events/ir-calendar
Allow at least 15 minutes prior to the call time to register for
the call. A replay of the webcast will be available on the
company’s website for one year.
Prior to Genworth’s conference call, Enact will hold a
conference call on May 4, 2023 at 8:00 a.m. (ET) to discuss its
results from the first quarter, which will be accessible via:
- Telephone: Click here to obtain a dial-in number and unique PIN
for Enact’s live question and answer session; or
- Webcast: http://ir.enactmi.com/news-and-events/events
Allow at least 15 minutes prior to the call time to register for
the call.
Use of Non-GAAP Measures This press release includes the
non-GAAP financial measures entitled "adjusted operating income
(loss)" and "adjusted operating income (loss) per share." Adjusted
operating income (loss) per share is derived from adjusted
operating income (loss). The chief operating decision maker
evaluates segment performance and allocates resources on the basis
of adjusted operating income (loss). The company defines adjusted
operating income (loss) as income (loss) from continuing operations
excluding the after-tax effects of income (loss) from continuing
operations attributable to noncontrolling interests, net investment
gains (losses), changes in fair value of market risk benefits
attributable to interest rates, equity markets and associated
hedges, gains (losses) on the sale of businesses, gains (losses) on
the early extinguishment of debt, restructuring costs and
infrequent or unusual non-operating items. A component of the
company’s net investment gains (losses) is the result of estimated
future credit losses, the size and timing of which can vary
significantly depending on market credit cycles. In addition, the
size and timing of other investment gains (losses) can be subject
to the company’s discretion and are influenced by market
opportunities, as well as asset-liability matching considerations.
The company excludes net investment gains (losses), changes in fair
value of market risk benefits attributable to interest rates,
equity markets and associated hedges, gains (losses) on the sale of
businesses, gains (losses) on the early extinguishment of debt,
restructuring costs and infrequent or unusual non-operating items
from adjusted operating income (loss) because, in the company’s
opinion, they are not indicative of overall operating
performance.
While some of these items may be significant components of net
income (loss) in accordance with GAAP, the company believes that
adjusted operating income (loss) and measures that are derived from
or incorporate adjusted operating income (loss), including adjusted
operating income (loss) per share on a basic and diluted basis, are
appropriate measures that are useful to investors because they
identify the income (loss) attributable to the ongoing operations
of the business. Management also uses adjusted operating income
(loss) as a basis for determining awards and compensation for
senior management and to evaluate performance on a basis comparable
to that used by analysts. However, the items excluded from adjusted
operating income (loss) have occurred in the past and could, and in
some cases will, recur in the future. Adjusted operating income
(loss) and adjusted operating income (loss) per share on a basic
and diluted basis are not substitutes for net income (loss) or net
income (loss) per share on a basic and diluted basis determined in
accordance with GAAP. In addition, the company’s definition of
adjusted operating income (loss) may differ from the definitions
used by other companies.
Adjustments to reconcile net income (loss) to adjusted operating
income (loss) assume a 21 percent tax rate and are net of the
portion attributable to noncontrolling interests. Changes in fair
value of market risk benefits attributable to interest rates,
equity markets and associated hedges are also adjusted for changes
in reserves, attributed fees and benefit payments.
The tables at the end of this press release provide a
reconciliation of net income available to Genworth Financial,
Inc.'s common stockholders to adjusted operating income for the
three months ended March 31, 2023 and 2022 and reflect adjusted
operating income (loss) as determined in accordance with accounting
guidance related to segment reporting.
This press release includes the non-GAAP financial measure
entitled "core yield" as a measure of investment yield. The company
defines core yield as the investment yield adjusted for items that
do not reflect the underlying performance of the investment
portfolio. Management believes that analysis of core yield enhances
understanding of the investment yield of the company. However, core
yield is not a substitute for investment yield determined in
accordance with GAAP. In addition, the company's definition of core
yield may differ from the definitions used by other companies. A
reconciliation of reported GAAP yield to core yield is included in
a table at the end of this press release.
Re-segmentation Beginning in the first quarter of 2023,
the company changed its operating segments to better align with how
it manages the business. All prior period information has been
re-presented to reflect the reorganized segment reporting
structure. Under the new structure, the company has the following
three operating segments: Enact (mortgage insurance), Long-Term
Care Insurance and Life and Annuities (which includes life
insurance, fixed annuities and variable annuities). In addition,
the company also has Corporate and Other, which includes debt
financing expenses that are incurred at the Genworth Holdings
level, unallocated corporate income and expenses, eliminations of
inter-segment transactions and the results of other businesses that
are reported outside of the operating segments, such as certain
international businesses and discontinued operations. Corporate and
Other also includes start-up results related to fee-based services,
care support and advice, clinical assessments and consulting
offered by CareScout LLC (CareScout), to advance the company’s
senior care growth initiatives.
Long-duration targeted improvements On January 1, 2023,
the company also adopted new GAAP accounting guidance that
significantly changed the recognition and measurement of
long-duration insurance contracts, commonly known as LDTI. This
accounting guidance impacted the company’s LTC, life insurance and
annuity products and was applied as of January 1, 2021. While the
new guidance has had a significant impact on existing GAAP
financial statements and disclosures, it does not impact the cash
flows or underlying economics of the business, business strategy,
statutory net income (loss) or RBC of the U.S. life insurance
companies, and it does not have an impact on the Enact segment,
Corporate and Other or management of capital. All prior period
information has been re-presented to reflect the adoption of
LDTI.
All financial information in this press release is based on the
company's implementation of LDTI and is currently unaudited. The
information in this document is being provided on an unaudited
basis to assist investors and others in evaluating the impact of
LDTI on the company's financial position and results of operations.
It is possible that the final audited financial results may differ,
perhaps materially, from the information included in this press
release.
Statutory Accounting Data The company presents certain
supplemental statutory data for GLIC and its consolidating life
insurance subsidiaries that has been prepared on the basis of
statutory accounting principles (SAP). GLIC and its consolidating
life insurance subsidiaries file financial statements with state
insurance regulatory authorities and the National Association of
Insurance Commissioners that are prepared using SAP, an accounting
basis either prescribed or permitted by such authorities. Due to
differences in methodology between SAP and GAAP, the values for
assets, liabilities and equity reflected in financial statements
prepared in accordance with GAAP are materially different from
those reflected in financial statements prepared under SAP. This
supplemental statutory data should not be viewed as an alternative
to GAAP or used in lieu of GAAP.
This supplemental statutory data includes company action level
RBC ratios for GLIC and its consolidating life insurance
subsidiaries as well as combined statutory pre-tax earnings from
the principal U.S. life insurance companies, GLIC, GLAIC and
GLICNY. Statutory pre-tax earnings represent the net gain from
operations before dividends to policyholders, refunds to members
and federal income taxes and before realized capital gains or
(losses). The combined product level statutory pre-tax earnings are
grouped on a consistent basis as those provided on page six of the
statutory Annual Statements. Management uses and provides this
supplemental statutory data because it believes it provides a
useful measure of among other things the adequacy of capital.
Management uses this data to measure against its policy to manage
the U.S. life insurance companies with internally generated
capital.
Cautionary Note Regarding Forward-Looking Statements This
press release contains certain “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements may be identified by words such as
“expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,”
“estimates,” “will” or words of similar meaning and include, but
are not limited to, statements regarding the outlook for the
company’s future business and financial performance. Examples of
forward-looking statements include statements the company makes
relating to potential dividends or share repurchases; future return
of capital by Enact Holdings, Inc. (Enact Holdings), including
share repurchases, and quarterly and special dividends; the
cumulative amount of rate action benefits required for the
company’s long-term care insurance business to achieve economic
break-even status; future financial performance and condition of
the company’s businesses; liquidity and future strategic
investments, including new senior care services and products;
future business and financial performance of CareScout; as well as
statements the company makes regarding the potential of a recession
or the re-emergence of the coronavirus pandemic (COVID-19).
Forward-looking statements are based on management’s current
expectations and assumptions, which are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Actual outcomes and results may differ
materially from those in the forward-looking statements due to
global political, economic, inflation, business, competitive,
market, regulatory and other factors and risks, including but not
limited to, the following:
- the company’s inability to successfully execute its strategic
plans;
- failure by the company to achieve economic break-even on or
stabilize its legacy long-term care insurance in-force block,
including as a result of the inability to achieve desired levels of
in-force rate actions and/or the timing of its future premium rate
increases and associated benefit reductions taking longer to
achieve than originally assumed; other regulatory actions
negatively impacting the company’s life insurance businesses and/or
the inability to establish new long-term care insurance
business;
- inaccuracies or changes in estimates, assumptions,
methodologies, valuations, projections and/or models, which result
in inadequate reserves or other adverse results (including as a
result of any changes in connection with quarterly, annual or other
reviews);
- the impact on holding company liquidity caused by any inability
to receive dividends or other returns of capital from Enact
Holdings, and limited sources of capital and financing;
- adverse changes to the structure, or requirements of Federal
National Mortgage Association (Fannie Mae), Federal Home Loan
Mortgage Corporation (Freddie Mac) or the U.S. mortgage insurance
market; an increase in the number of loans insured through federal
government mortgage insurance programs, including those offered by
the Federal Housing Administration; the inability of Enact Holdings
and/or its U.S. mortgage insurance subsidiaries to continue to meet
the requirements mandated by PMIERs (or any adverse changes
thereto), inability to meet minimum statutory capital requirements
of applicable regulators or the mortgage insurer eligibility
requirements of Fannie Mae or Freddie Mac;
- changes in economic, market and political conditions including
as a result of high inflation, supply chain disruptions, labor
shortages, displacement related to COVID-19 and elevated interest
rates, including actions taken by the U.S. Federal Reserve to
increase interest rates to combat inflation and slow economic
growth, which could heighten the risk of a future recession;
unanticipated financial events such as the recent closures and
disruption experienced by the banking sector, which could lead to
market-wide liquidity problems and other significant market
disruption resulting in losses, defaults or credit rating
downgrades of other financial institutions; deterioration in
economic conditions, a recession or a decline in home prices, all
of which could be driven by many potential factors, including
inflation, may adversely affect Enact Holdings’ loss experience
and/or business levels; political and economic instability or
changes in government policies, and fluctuations in international
securities markets;
- rating downgrades or potential downgrades in liquidity,
financial strength and credit ratings; counterparty credit risks;
defaults by counterparties to reinsurance arrangements or
derivative instruments; defaults or other events impacting the
value of invested assets;
- changes in tax rates or tax laws, or changes in accounting and
reporting standards (including new accounting guidance the company
adopted on January 1, 2023 related to long-duration insurance
contracts);
- litigation and regulatory investigations or other actions,
including commercial and contractual disputes with
counterparties;
- the company’s inability to achieve anticipated business
performance and financial results from CareScout and its senior
care growth initiatives through fee-based services, advice,
consulting and products;
- the inability to retain, attract and motivate qualified
employees or senior management;
- the occurrence of natural or man-made disasters, including
geopolitical tensions and war (including the Russian invasion of
Ukraine), a public health emergency, including pandemics, climate
change or cybersecurity breaches; and
- other factors described in the risk factors contained in Item
1A of the company’s Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission on February 28, 2023.
The company provides additional information regarding these
risks and uncertainties in its Annual Report on Form 10-K. Unlisted
factors may present significant additional obstacles to the
realization of forward-looking statements. Accordingly, for the
foregoing reasons, the company cautions you against relying on any
forward-looking statements. The company undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as may
be required under applicable securities laws.
Condensed Consolidated
Statements of Income
(Amounts in millions, except
per share amounts)
(Unaudited)
Three months ended
March 31,
2023
2022
(As adjusted)
Revenues:
Premiums
$
915
$
917
Net investment income
787
764
Net investment gains (losses)
(11
)
42
Policy fees and other income
163
170
Total revenues
1,854
1,893
Benefits and expenses:
Benefits and other changes in policy
reserves
1,172
1,165
Liability remeasurement (gains) losses
22
(41
)
Changes in fair value of market risk
benefits and associated hedges
17
(41
)
Interest credited
126
125
Acquisition and operating expenses, net of
deferrals
283
280
Amortization of deferred acquisition costs
and intangibles
72
88
Interest expense
29
26
Total benefits and expenses
1,721
1,602
Income from continuing operations before
income taxes
133
291
Provision for income taxes
39
68
Income from continuing operations
94
223
Loss from discontinued operations, net of
taxes
—
(2
)
Net income
94
221
Less: net income from discontinued
operations attributable to noncontrolling interests
32
30
Less: net income from discontinued
operations attributable to noncontrolling interests
—
—
Net income available to Genworth
Financial, Inc.'s common stockholders
$
62
$
191
Net income available to Genworth
Financial, Inc.'s common stockholders:
Income from continuing operations
available to Genworth Financial, Inc.'s common stockholders
$
62
$
193
Loss from discontinued operations
available to Genworth Financial, Inc.'s common stockholders
—
(2
)
Net income available to Genworth
Financial, Inc.'s common stockholders
$
62
$
191
Income from continuing operations
available to Genworth Financial, Inc.'s common stockholders per
share:
Basic
$
0.13
$
0.38
Diluted
$
0.12
$
0.37
Net income available to Genworth
Financial, Inc.'s common stockholders per share:
Basic
$
0.13
$
0.38
Diluted
$
0.12
$
0.37
Weighted-average common shares
outstanding:
Basic
492.3
508.3
Diluted
500.1
517.4
Reconciliation of Net Income
to Adjusted Operating Income
(Amounts in millions, except
per share amounts)
(Unaudited)
Three
months ended
March 31,
2023
2022
Net income available to Genworth
Financial, Inc.'s common stockholders
$
62
$
191
Add: net income from continuing operations
attributable to noncontrolling interests
32
30
Add: net income from discontinued
operations attributable to noncontrolling interests
—
—
Net income
94
221
Less: loss from discontinued operations,
net of taxes
—
(2
)
Income from continuing operations
94
223
Less: net income from continuing
operations attributable to noncontrolling interests
32
30
Income from continuing operations
available to Genworth Financial, Inc.'s common stockholders
62
193
Adjustments to income from continuing
operations available to Genworth Financial, Inc.'s common
stockholders:
Net investment (gains) losses
11
(42
)
Changes in fair value of market risk
benefits attributable to changes in interest rates, equity markets
and associated hedges12
14
(54
)
(Gains) losses on early extinguishment of
debt
(1
)
3
Expenses related to restructuring
3
—
Taxes on adjustments
(5
)
20
Adjusted operating income
$
84
$
120
Adjusted operating income (loss):
Enact segment
$
143
$
135
Long-Term Care Insurance segment
(37
)
27
Life and Annuities segment:
Life Insurance
(27
)
(47
)
Fixed Annuities
14
13
Variable Annuities
9
4
Total Life and Annuities segment
(4
)
(30
)
Corporate and Other
(18
)
(12
)
Adjusted operating income
$
84
$
120
Net income available to Genworth
Financial, Inc.'s common stockholders per share:
Basic
$
0.13
$
0.38
Diluted
$
0.12
$
0.37
Adjusted operating income per share:
Basic
$
0.17
$
0.24
Diluted
$
0.17
$
0.23
Weighted-average common shares
outstanding:
Basic
492.3
508.3
Diluted
500.1
517.4
Reconciliation of Reported
Yield to Core Yield
Three months ended
March 31,
December 31,
(Assets - amounts
in billions)
2023
2022
Reported Total Invested Assets and
Cash
$
61.6
$
60.7
Subtract:
Unrealized gains (losses)
(3.0
)
(4.2
)
Adjusted End of Period Invested Assets and
Cash
$
64.6
$
64.9
Average Invested Assets and Cash Used in
Reported and Core Yield Calculation
$
64.8
$
65.0
(Income - amounts
in millions)
Reported Net Investment Income
$
787
$
787
Subtract:
Bond calls and commercial
mortgage loan prepayments
2
6
Other non-core items13
1
(1
)
Core Net Investment Income
$
784
$
782
Reported Yield
4.86
%
4.84
%
Core Yield
4.84
%
4.81
%
1 Private Mortgage Insurer Eligibility
Requirements.
2 Company estimate for the first quarter
of 2023 due to timing of the preparation of the filing(s).
3 Net gain from operations before
dividends to policyholders, refunds to members and federal income
taxes for Genworth Life Insurance Company (GLIC), Genworth Life and
Annuity Insurance Company (GLAIC) and Genworth Life Insurance
Company of New York (GLICNY), and before realized capital gains or
(losses).
4 Risk-based capital ratio based on
company action level for GLIC consolidated.
5 All references reflect amounts available
to Genworth’s common stockholders excluding noncontrolling
interests.
6 This is a financial measure that is not
calculated based on U.S. Generally Accepted Accounting Principles
(GAAP). See the Use of Non-GAAP Measures section of this press
release for additional information.
7 Reflects Genworth’s ownership excluding
noncontrolling interests of $32 million and $30 million in the
first quarters of 2023 and 2022, respectively.
8 The PMIERs sufficiency ratio is
calculated as available assets divided by required assets as
defined within PMIERs.
9 Genworth’s principal U.S. life insurance
companies: GLIC, GLAIC and GLICNY.
10 Holding company cash and liquid assets
comprises assets held in Genworth Holdings, Inc. (the issuer of
outstanding public debt) which is a wholly-owned subsidiary of
Genworth Financial, Inc.
11 Genworth Holdings, Inc. had $233
million and $140 million of cash, cash equivalents and restricted
cash as of March 31, 2023 and March 31, 2022, respectively.
Genworth Holdings, Inc. also held $75 million in U.S. government
securities as of March 31, 2022, which included $1 million of
restricted assets.
12 Changes in fair value of market risk
benefits attributable to interest rates, equity markets and
associated hedges were adjusted for changes in reserves, attributed
fees and benefit payments of $(3) million and $(13) million for the
three months ended March 31, 2023 and 2022, respectively.
13 Includes cost basis adjustments on
structured securities and various other immaterial items.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503005773/en/
Investors: Sarah E. Crews InvestorInfo@genworth.com
Media: Amy Rein Amy.Rein@genworth.com
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