Net Income of $137 Million and Adjusted
Operating Income of $85 Million
Announced $350 Million Expansion of Existing
Share Repurchase Program
- Enact segment adjusted operating income of $146M; PMIERs1
sufficiency ratio of 162%2
- Continued progress on Long-Term Care Insurance (LTC) multi-year
rate action plan, with $94M of gross incremental premium approved
in second quarter and approximately $24.4B net present value
achieved from in-force rate actions (IFAs) since 2012
- LTC adjusted operating loss of $(43)M; Life and Annuities
adjusted operating income of $2M
- U.S. life insurance companies’ statutory pre-tax income3 of
$63M2 driving RBC4 ratio of 293%2
- Genworth holding company cash and liquid assets of $222M at
quarter-end
- Executed $112M in share repurchases in the quarter; $264M in
total executed through July 2023 at an average price of $5.11 per
share
Genworth Financial, Inc. (NYSE: GNW) today reported results for
the quarter ended June 30, 2023.
“Enact continues to perform well and has increased its planned
capital return to Genworth and other shareholders. Based on strong
free cash flow, the Genworth Board increased the share repurchase
authorization by $350 million.” – Tom McInerney, President
& CEO
Consolidated Metrics
Q2 2023
Q1 2023
Q2 2022
(Amounts in millions, except per share
data)
Net income5
$
137
$
122
$
159
Earnings per diluted share5
$
0.29
$
0.24
$
0.31
Adjusted operating income5,6
$
85
$
144
$
153
Adjusted operating income per diluted
share5,6
$
0.18
$
0.29
$
0.30
Weighted-average diluted shares
478.1
500.1
514.1
Consolidated GAAP Financial
Highlights
- Net income was driven by Enact, which had strong operating
performance resulting from favorable loss performance and increased
net investment income
- Net investment gains, net of taxes and other adjustments,
increased net income by $33 million in the current quarter,
compared with $15 million in the prior year. The investment gains
in the current quarter were primarily from mark-to-market
adjustments on limited partnership and equity investments held in
the LTC business, partially offset by net trading losses
- Changes in fair value of market risk benefits and associated
hedges, net of taxes and other adjustments, increased net income by
$18 million in the current quarter compared with a decrease of $6
million in the prior year
- Adjusted operating income reflects Enact’s strong operating
performance, partially offset by losses in LTC and Corporate and
Other
- Net investment income was $785 million in the quarter, a slight
decrease from $787 million in the prior year due to lower income
from limited partnerships and U.S. Government Treasury
Inflation-Protected Securities (TIPS), mostly offset by higher
investment yields
- The effective tax rate on income from continuing operations was
approximately 24.9 percent in the current quarter, primarily
reflecting a higher tax rate of 35 percent on certain forward
starting swap gains, consistent with prior quarters
In the second quarter of 2023, the company changed its
accounting for the liability for future policy benefits under
long-duration targeted improvements accounting guidance (LDTI) to
include an estimate in assumptions for cash payments to
policyholders associated with previously disclosed LTC legal
settlements. This is consistent with the treatment of the estimate
for benefit reductions associated with these settlements as part of
the liability for future policy benefits. The change impacted the
balance sheet and income statement results for prior periods after
the adoption of LDTI on January 1, 2023. All prior period amounts
reflected herein have been updated to reflect this change. LTC’s
GAAP results were impacted as a result, but there was no impact to
Enact, the company’s cash flows, capital levels, or statutory
accounting results.
Enact
GAAP Operating Metrics
Q2 2023
Q1 2023
Q2 2022
(Dollar amounts in millions)
Adjusted operating income7
$
146
$
143
$
167
Primary new insurance written
$
15,083
$
13,154
$
17,448
Loss ratio
(2)%
(5)%
(26)%
- Adjusted operating income reflected a pre-tax benefit of $4
million from incurred losses driven by a favorable pre-tax reserve
release of $63 million, primarily from cure performance on 2020
through first half 2022 delinquencies, including COVID-19 related
delinquencies. The prior quarter and prior year included favorable
pre-tax reserves releases of $70 million and $96 million,
respectively, primarily related to cures on COVID-19
delinquencies
- Net investment income was $50 million pre-tax in the current
quarter, up from $36 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 $258 billion, driven by new insurance written (NIW)
and continued elevated persistency
- Primary NIW was down 14 percent versus the prior year,
primarily from lower originations as a result of elevated interest
rates, and increased 15 percent sequentially primarily driven by
higher originations
- New delinquencies increased 17 percent to 9,205 from 7,847 in
the prior year, primarily from the aging of large, new books
Capital Metric
Q2 2023
Q1 2023
Q2 2022
PMIERs Sufficiency Ratio2,8
162
%
164
%
166
%
- Enact announced on August 1, 2023 that its Board of Directors
has authorized a new share repurchase program of $100 million
shares. Enact increased its full year 2023 capital return guidance
and now expects to return a total of $300 million of capital to its
shareholders
- Enact paid a quarterly dividend of $0.16 per share in the
current quarter
- Estimated PMIERs sufficiency ratio was 162 percent, $1,958
million above requirements, down two points from the prior quarter
as a result of NIW, partially offset by lapse
Long-Term Care Insurance
GAAP Operating Metrics
Q2 2023
Q1 2023
Q2 2022
(Amounts in millions)
Adjusted operating income (loss)
$
(43
)
$
23
$
17
Premiums
$
611
$
616
$
617
Net investment income
$
470
$
473
$
486
Liability remeasurement gains (losses)
$
(61
)
$
32
$
(23
)
Cash flow assumption updates
24
(21
)
20
Actual to expected experience
(85
)
53
(43
)
- Premiums related to IFAs of $245 million pre-tax, up $19
million versus the prior year
- Lower net investment income of $16 million pre-tax versus the
prior year, primarily from limited partnerships and TIPS, partially
offset by higher bank loan income and investment yields
- Current quarter results reflected a liability remeasurement
loss of $61 million pre-tax. The unfavorable actual experience
versus best estimate liability assumptions of $85 million was
driven by lower terminations and higher claims as the blocks age,
primarily on unprofitable, capped LTC cohorts. This was partially
offset by a favorable quarterly assumption update of $24 million
related to the implementation timing and approval amounts of
certain IFAs
Life and
Annuities
GAAP Adjusted Operating Income
(Loss)
Q2 2023
Q1 2023
Q2 2022
(Amounts in millions)
Life Insurance
$
(17
)
$
(27
)
$
(37
)
Fixed Annuities
$
10
$
14
$
20
Variable Annuities
$
9
$
9
$
2
Total Life and Annuities
$
2
$
(4
)
$
(15
)
Life Insurance
- Current quarter results reflected lower mortality
experience
- Deferred acquisition costs amortization expense was lower,
primarily driven by lower lapses and block runoff
Annuities
- Fixed annuities results reflected lower fixed payout annuity
mortality and lower net spreads, primarily related to block
runoff
- Variable annuities reported higher adjusted operating income
versus the prior year from favorable impacts of the aging of the
block
U.S. Life Insurance Companies Statutory Results and
RBC
(Dollar amounts in millions)
Q2 2023
Q1 2023
Q2 2022
Statutory Pre-Tax Income2,9
$
63
$
192
$
(62
)
Long-Term Care Insurance
(71
)
138
18
Life Insurance
26
(23
)
8
Fixed Annuities
14
25
49
Variable Annuities
94
52
(137
)
GLIC Consolidated RBC Ratio2
293
%
295
%
290
%
- Statutory pre-tax income estimated at $63 million for the
current quarter, driven by:
- LTC, which continues to benefit from premium increases and
benefit reductions from IFAs, including more favorable impacts from
reduced benefit selections on policies subject to legal settlements
versus the prior year, but experienced pressure from seasonally
lower terminations, higher claims as the blocks age, and legal
settlement expenses
- Improved mortality in life insurance
- Favorable impacts to variable annuity reserves from equity
market and interest rate movements
- The U.S life insurance companies estimate quarter-end RBC to be
293 percent, down slightly from the prior quarter
Corporate and Other
- The current quarter adjusted operating loss of $20 million was
higher versus the prior quarter and prior year’s adjusted operating
losses of $18 million and $16 million, respectively. Expenses
related to the company’s new growth initiatives with its CareScout
business increased versus the prior year
Holding Company Cash and Liquid Assets
(Amounts in millions)
Q2 2023
Q1 2023
Q2 2022
Holding Company Cash and Liquid
Assets10,11
$
222
$
233
$
228
- Cash and liquid assets of $222 million remained above the
company’s cash target of two-times annual debt service
- Cash inflows during the quarter consisted of $63 million from
intercompany tax payments and $54 million from Enact capital
returns, which included a $21 million quarterly dividend and $33
million in share repurchase proceeds
- Current quarter cash outflows included $112 million in share
repurchases and $19 million related to debt servicing costs
Returns to Shareholders
- The company announced on July 31, 2023 that its Board of
Directors has authorized the repurchase of an additional $350
million of shares of Class A common stock under its existing share
repurchase program. After increasing the authorization, as of July
31, 2023, an aggregate of approximately $436 million will be
available for purchase under the program
- In the second quarter of 2023, the company repurchased $112
million of its common stock at an average price of $5.45 per share.
Subsequently, in July 2023, the company repurchased an additional
$20 million of its common stock at an average price of $5.40
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 Information Investors are encouraged to
read this press release and summary presentation, which are now
posted on the company’s website, http://investor.genworth.com.
Genworth will conduct a conference call on August 9, 2023 at
9:00 a.m. (ET) to discuss its second quarter results, which will be
accessible via:
- Telephone: 888-208-1820 or 323-794-2110 (outside the U.S.);
conference ID # 4877504; 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.
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 company’s President and Chief
Executive Officer (Principal Executive Officer), who serves as 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 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 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 and associated hedges are adjusted to
exclude 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 June 30, 2023 and 2022, as well as the three
months ended March 31, 2023 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.
Long-duration targeted improvements 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 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 herein 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. 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, and the recognition of income and
expenses, 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 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, including the impact from in-force rate actions, before
dividends to policyholders, refunds to members and federal income
taxes and before realized capital gains or (losses). Management
uses and provides this supplemental statutory data because it
believes it provides a useful measure of, among other things,
statutory pre-tax earnings and 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 LLC
(CareScout); as well as statements the company makes regarding the
potential of a recession.
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 an inability
to receive dividends or any 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 inflation and supply chain disruptions related to
the coronavirus pandemic (COVID-19), a potential recession,
unanticipated financial events such as the closure of financial
institutions and disruption experienced by the banking sector;
changes in interest rates; deterioration in economic conditions or
a decline in home prices or home sales that 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 other products and services;
- 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, or
climate change;
- the inability to effectively manage information technology
systems, cyber incidents or other failures, disruptions or security
breaches to the company or its third-party vendors such as the
MOVEit cybersecurity incident; 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
Three months ended
ended
June 30,
March 31,
2023
2022
2023
Revenues:
Premiums
$
902
$
916
$
915
Net investment income
785
787
787
Net investment gains (losses)
39
19
(11
)
Policy fees and other income
166
165
163
Total revenues
1,892
1,887
1,854
Benefits and expenses:
Benefits and other changes in policy
reserves
1,175
768
1,176
Liability remeasurement (gains) losses
70
24
(15
)
Changes in fair value of market risk
benefits and associated hedges
(19
)
20
17
Interest credited
126
126
126
Acquisition and operating expenses, net of
deferrals
226
579
240
Amortization of deferred acquisition costs
and intangibles
64
84
72
Interest expense
29
26
29
Total benefits and expenses
1,671
1,627
1,645
Income from continuing operations before
income taxes
221
260
209
Provision for income taxes
55
62
55
Income from continuing operations
166
198
154
Income (loss) from discontinued
operations, net of taxes
2
(1
)
—
Net income
168
197
154
Less: net income from continuing
operations attributable to noncontrolling
interests
31
38
32
Less: net income from discontinued
operations attributable to noncontrolling
interests
—
—
—
Net income available to Genworth
Financial, Inc.'s common stockholders
$
137
$
159
$
122
Net income available to Genworth
Financial, Inc.'s common stockholders:
Income from continuing operations
available to Genworth Financial, Inc.'s
common stockholders
$
135
$
160
$
122
Income (loss) from discontinued operations
available to Genworth
Financial, Inc.'s common stockholders
2
(1
)
—
Net income available to Genworth
Financial, Inc.'s common stockholders
$
137
$
159
$
122
Income from continuing operations
available to Genworth Financial, Inc.'s
common stockholders per share:
Basic
$
0.28
$
0.32
$
0.25
Diluted
$
0.28
$
0.31
$
0.24
Net income available to Genworth
Financial, Inc.'s common stockholders
per share:
Basic
$
0.29
$
0.31
$
0.25
Diluted
$
0.29
$
0.31
$
0.24
Weighted-average common shares
outstanding:
Basic
473.2
508.9
492.3
Diluted
478.1
514.1
500.1
Reconciliation of Net Income
to Adjusted Operating Income
(Amounts in millions, except
per share amounts)
(Unaudited)
Three
Three
months ended
months ended
June 30,
March 31,
2023
2022
2023
Net income available to Genworth
Financial, Inc.'s common stockholders
$
137
$
159
$
122
Add: net income from continuing operations
attributable to noncontrolling interests
31
38
32
Add: net income from discontinued
operations attributable to noncontrolling
interests
—
—
—
Net income
168
197
154
Less: income (loss) from discontinued
operations, net of taxes
2
(1
)
—
Income from continuing operations
166
198
154
Less: net income from continuing
operations attributable to noncontrolling interests
31
38
32
Income from continuing operations
available to Genworth Financial, Inc.'s
common stockholders
135
160
122
Adjustments to income from continuing
operations available to Genworth
Financial, Inc.'s common stockholders:
Net investment (gains) losses, net12
(41
)
(19
)
11
Changes in fair value of market risk
benefits attributable to interest rates, equity
markets and associated hedges13
(23
)
8
14
(Gains) losses on early extinguishment of
debt
—
1
(1
)
Expenses related to restructuring
1
1
3
Taxes on adjustments
13
2
(5
)
Adjusted operating income
$
85
$
153
$
144
Adjusted operating income (loss):
Enact segment
$
146
$
167
$
143
Long-Term Care Insurance segment
(43
)
17
23
Life and Annuities segment:
Life Insurance
(17
)
(37
)
(27
)
Fixed Annuities
10
20
14
Variable Annuities
9
2
9
Total Life and Annuities segment
2
(15
)
(4
)
Corporate and Other
(20
)
(16
)
(18
)
Adjusted operating income
$
85
$
153
$
144
Net income available to Genworth
Financial, Inc.'s common stockholders
per share:
Basic
$
0.29
$
0.31
$
0.25
Diluted
$
0.29
$
0.31
$
0.24
Adjusted operating income per share:
Basic
$
0.18
$
0.30
$
0.29
Diluted
$
0.18
$
0.30
$
0.29
Weighted-average common shares
outstanding:
Basic
473.2
508.9
492.3
Diluted
478.1
514.1
500.1
Reconciliation of Reported
Yield to Core Yield
Three months ended
June 30,
March 31,
(Assets
- amounts in billions)
2023
2023
Reported Total Invested Assets
and Cash
$
61.0
$
61.6
Subtract:
Unrealized gains (losses)
(3.7)
(3.0)
Adjusted End of Period Invested
Assets and Cash
$
64.7
$
64.6
Average Invested Assets and Cash
Used in Reported and Core Yield Calculation
$
64.6
$
64.8
(Income
- amounts in millions)
Reported Net Investment
Income
$
785
$
787
Subtract:
Bond calls and commercial
mortgage loan prepayments
—
2
Other non-core items14
3
1
Core Net Investment Income
$
782
$
784
Reported Yield
4.86
%
4.86
%
Core Yield
4.84
%
4.84
%
___________________
1 Private Mortgage Insurer Eligibility
Requirements.
2 Company estimate for the second 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 $31 million, $32 million and $38
million in the second and first quarters of 2023 and second quarter
of 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 $222
million, $233 million and $178 million of cash and cash equivalents
as of June 30, 2023, March 31, 2023 and June 30, 2022,
respectively. Genworth Holdings, Inc. also held $50 million in U.S.
government securities as of June 30, 2022.
12 Net investment (gains) losses were
adjusted for the portion of net investment losses attributable to
noncontrolling interests of $2 million for the three months ended
June 30, 2023.
13 Changes in fair value of market risk
benefits and associated hedges were adjusted to exclude changes in
reserves, attributed fees and benefit payments of $(4) million and
$(12) million for the three months ended June 30, 2023 and 2022,
respectively, and $(3) million for the three months March 31,
2023.
14 Includes cost basis adjustments on
structured securities and various other immaterial items.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230808328414/en/
Investors: Sarah E. Crews InvestorInfo@genworth.com
Media: Amy Rein Amy.Rein@genworth.com
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