Strategic Highlights
- Executed $35M in share repurchases in the quarter; $384M in
total executed through February 13, 2024, at an average price of
$5.33 per share with approximately 443M shares outstanding
- Significant progress on Long-Term Care Insurance (LTC)
multi-year rate action plan (MYRAP), reducing the estimated
remaining amount left to achieve by $1.5B to approximately $5B
- Achieved $127M of gross incremental premium approved in fourth
quarter in the MYRAP, $28B net present value achieved from in-force
rate actions (IFAs) since 2012
Financial Highlights
- Net loss1 of $212M, or $0.47 per diluted share, and adjusted
operating loss1,2 of $230M, or $0.51 per diluted share
- Received $128M in capital returns from Enact
- Completed annual assumption updates with unfavorable impacts in
life insurance and LTC of $227M, or $0.50 per diluted share
- U.S. life insurance companies’ statutory pre-tax income3 of
$148M4 and RBC5 ratio of 303%4
- Genworth holding company cash and liquid assets of $350M at
year-end
Genworth Financial, Inc. (NYSE: GNW) today reported results for
the quarter ended December 31, 2023.
“I’m proud of Genworth’s progress against our strategic
priorities in 2023,” said Tom McInerney, President & CEO. “We
successfully improved the financial condition of our legacy LTC
business through our multi-year rate action plan, launched the
innovative CareScout Quality Network, and returned $295 million of
capital to shareholders. Enact continued to deliver strong
performance, generating $552 million in adjusted operating income
and $245 million in cash flows to Genworth for the full year.
Looking ahead, we are well positioned with financial flexibility
and a clear strategy to drive shareholder value in 2024 and
beyond.”
Consolidated GAAP
Financial Highlights
Consolidated Metrics
Q4 2023
Q3 2023
Q4 2022
(Amounts in millions, except per share
data)
Net income (loss)1
$
(212)
$
29
$
381
Earnings (loss) per diluted share1
$
(0.47)
$
0.06
$
0.76
Adjusted operating income (loss)1,2
$
(230)
$
42
$
338
Adjusted operating income (loss) per
diluted share1,2
$
(0.51)
$
0.09
$
0.67
Weighted-average diluted shares6
449.4
466.0
502.9
- Net loss and adjusted operating loss reflect losses in LTC and
Life and Annuities, which include annual assumption updates,
partially offset by Enact’s strong operating performance
- Net investment gains, net of taxes, increased net income by $30
million in the current quarter, compared with net investment losses
that decreased net income by $4 million in the prior year. The
investment gains in the current quarter were driven primarily by
mark-to-market adjustments on limited partnership and equity
securities, as well as derivatives gains, partially offset by net
trading losses
- Net investment income was $810 million in the quarter, up from
$787 million in the prior year as higher income from limited
partnerships and investment yields were partially offset by lower
average invested assets
Enact
GAAP Operating Metrics
Q4 2023
Q3 2023
Q4 2022
(Dollar amounts in millions)
Adjusted operating income7
$
129
$
134
$
120
Primary new insurance written
$
10,453
$
14,391
$
15,145
Loss ratio
10%
7%
8%
Equity8
$
3,785
$
3,646
$
3,356
- Current quarter results reflect a favorable pre-tax reserve
release of $53 million, primarily from cure performance on
delinquencies from 2022 and earlier, including delinquencies
related to the coronavirus pandemic (COVID). The prior quarter and
prior year included favorable net pre-tax reserve releases of $55
million and $42 million, respectively
- Net investment income was $57 million in the current quarter,
up from $45 million in the prior year from higher yields and higher
average invested assets
- Primary insurance in-force increased six percent versus the
prior year to $263 billion, driven by new insurance written (NIW)
and continued elevated persistency
- Primary NIW was down 31 percent versus the prior year and 27
percent versus the prior quarter primarily due to a smaller
estimated private mortgage insurance market as both refinancing and
purchase originations were impacted by elevated mortgage rates
- New delinquencies increased 14 percent to 11,706 from 10,304 in
the prior year, primarily from the aging of large, new books
Capital Metric
Q4 2023
Q3 2023
Q4 2022
PMIERs Sufficiency Ratio4,9
161
%
162
%
165
%
- Enact paid a quarterly dividend of $0.16 per share and a
special dividend of $0.71 per share in the current quarter
- Estimated PMIERs sufficiency ratio was 161 percent, $1,887
million above requirements
Long-Term Care
Insurance
GAAP Operating Metrics
Q4 2023
Q3 2023
Q4 2022
(Amounts in millions)
Adjusted operating income (loss)
$
(151)
$
(71)
$
204
Premiums
$
615
$
621
$
639
Net investment income
$
489
$
482
$
470
Liability remeasurement gains (losses)
$
(188)
$
(104)
$
255
Cash flow assumption updates
(61)
6
303
Actual to expected experience
(127)
(110)
(48)
- Premiums related to IFAs of $255 million pre-tax, up $10
million versus the prior year
- Net investment income up versus the prior quarter and prior
year, driven primarily by higher limited partnership income
- Liability remeasurement loss of $188 million pre-tax;
unfavorable after-tax impact of $149 million
- Unfavorable impact of $61 million pre-tax from assumption
updates, primarily related to updates to healthy life assumptions
to better reflect near-term experience, partially offset by a
favorable update to disabled life mortality assumptions for
expected short-term trends. Updates also included assumptions for
future IFA approvals and benefit reductions based on recent
favorable experience and reflection of the Choice II legal
settlement, which had a muted income statement impact in the
current quarter because it primarily impacted profitable uncapped
cohorts
- Unfavorable actual experience versus best estimate liability
assumptions of $127 million pre-tax, or $0.22 after-tax per diluted
share, primarily on unprofitable capped cohorts driven by higher
claims and unfavorable legal settlement timing impacts
- Liability remeasurement gain of $255 million pre-tax in the
prior year included favorable assumption updates of $303 million
pre-tax, largely related to the PCS I and II legal settlement,
which primarily impacted capped cohorts
Life
and Annuities
GAAP Adjusted Operating Income
(Loss)
Q4 2023
Q3 2023
Q4 2022
(Amounts in millions)
Life Insurance
$
(206)
$
(25)
$
1
Fixed Annuities
9
17
14
Variable Annuities
14
5
8
Total Life and Annuities
$
(183)
$
(3)
$
23
Life Insurance
- Life insurance results included an unfavorable $179 million
after-tax impact for the annual assumption updates in the current
quarter, primarily from persistency assumptions related to certain
universal life (UL) products with secondary guarantees and
mortality assumptions for term UL, UL and term products, including
more modest mortality improvement and expected short-term trends
post-COVID
- Mortality experience was unfavorable in the current quarter
compared to the prior quarter and prior year
- Deferred acquisition costs amortization expense was lower than
prior year, primarily driven by lower lapses and block runoff
Annuities
- Fixed annuities results included less favorable fixed payout
annuity mortality compared to the prior quarter and lower net
spreads primarily related to block runoff compared to the prior
year
- Variable annuities reported higher adjusted operating income
from favorable assumption updates, as well as favorable mortality
compared to the prior quarter
U.S. Life Insurance Companies10 Statutory Results and
RBC
(Dollar amounts in millions)
Q4 2023
Q3 2023
Q4 2022
Statutory Pre-Tax Income (Loss)4
$
148
$
30
$
230
Long-Term Care Insurance
(9)
21
(58)
Life Insurance
82
(40)
144
Fixed Annuities
16
32
31
Variable Annuities
59
17
113
GLIC Consolidated RBC Ratio4
303
%
291
%
291
%
- Statutory pre-tax income was $148 million in the current
quarter, driven by:
- LTC continues to benefit from premium increases and benefit
reductions from IFAs, including more favorable impacts from reserve
releases related to legal settlements compared to the prior
quarter, but this benefit was more than offset by higher claims as
the block ages
- LTC results also included a $87 million increase in cash flow
testing reserves in GLICNY, partially offset by a net $29 million
pre-tax benefit from assumption updates
- Life insurance results included a $99 million pre-tax favorable
impact from assumption updates, primarily related to certain UL
products with secondary guarantees, as a favorable change in the
prescribed reinvestment rate more than offset the unfavorable
assumption updates for persistency and mortality
- Fixed annuities reflect less favorable mortality as well as
lower net spread income from block runoff
- Variable annuity reserves include net benefit as equity market
and interest rate movements were more favorable than the prior
quarter
- Current quarter GLIC consolidated RBC ratio was 303 percent, up
from the prior year driven primarily by earnings in annuities,
including a net benefit to variable annuities from the impact of
equity market and interest rate performance in the year, and the
net favorable impact of assumption updates, primarily in life
insurance
- Cash flow testing margin in GLIC for 2023 was within the
$0.5-$1.0 billion range after the completion of assumption
updates
Corporate and Other
- The current quarter adjusted operating loss was $25 million, up
from $18 million in the prior quarter and $9 million in the prior
year, primarily from taxes and expenses related to new growth
initiatives with CareScout
Holding Company Cash and Liquid
Assets
(Amounts in millions)
Q4 2023
Q3 2023
Q4 2022
Holding Company Cash and Liquid
Assets11,12
$
350
$
232
$
307
- Cash and liquid assets of $350 million remained above the
company’s cash target of two-times annual debt service
- Cash inflows during the current quarter consisted of $64
million from intercompany tax payments and $128 million from Enact
capital returns, which included a $21 million quarterly dividend, a
$92 million special dividend and $15 million in share repurchase
proceeds
- Current quarter cash outflows included $35 million in share
repurchases, $21 million related to debt servicing costs and the
repurchase of $21 million principal of the company’s 2034 and 2066
debt
Returns to Shareholders
- In the fourth quarter of 2023, the company repurchased $35
million of its common stock at an average price of $5.90 per
share
- Subsequently, the company repurchased an additional $25 million
of its common stock at an average price of $6.13 per share,
approximately 443 million shares were outstanding as of February
13, 2024
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, 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 February 22, 2024 at
9:00 a.m. (ET) to discuss its fourth quarter results, which will be
accessible via:
- Telephone: 888-208-1820 or 323-794-2110 (outside the U.S.);
conference ID # 6245584; 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 Management uses non-GAAP
financial measures entitled "adjusted operating income (loss)" and
"adjusted operating income (loss) per share” to evaluate
performance and allocate resources. Adjusted operating income
(loss) per share is derived from 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), among other key performance indicators, 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 (loss) available to Genworth
Financial, Inc.'s common stockholders to adjusted operating income
(loss) for the three and twelve months ended December 31, 2023 and
2022, as well as the three months ended September 30, 2023 and
reflect adjusted operating income (loss) as determined in
accordance with accounting guidance related to segment
reporting.
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 to, or used
in lieu of, GAAP.
This supplemental statutory data includes the company action
level RBC ratio 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). 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, 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; future financial
performance, including the expectation that adverse quarterly
variation from actual to expected variances in the company’s
long-term care insurance business could persist resulting in future
remeasurement losses; future financial condition of the company’s
businesses; liquidity and new lines of business or new products and
services, such as those the company is pursuing with our CareScout
business (CareScout); as well as statements the company makes
regarding the potential occurrence 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 inability to successfully launch new lines of business or
new products and services, such as those the company is pursuing
with CareScout;
- the company’s failure to maintain self-sustainability of its
long-term care insurance business, 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 high inflation, labor shortages, displacements
related to COVID 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, 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
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;
- litigation and regulatory investigations or other actions,
including commercial and contractual disputes with
counterparties;
- 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 and the Israel-Hamas conflict), 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 of 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 ended
Twelve months ended
Three months
ended
December 31,
December 31,
September 30,
2023
2022
2023
2022
2023
Revenues:
Premiums
$
904
$
918
$
3,636
$
3,680
$
915
Net investment income
810
787
3,183
3,146
801
Net investment gains (losses)
38
(5
)
23
(2
)
(43
)
Policy fees and other income
159
167
646
671
158
Total revenues
1,911
1,867
7,488
7,495
1,831
Benefits and expenses:
Benefits and other changes in policy
reserves
1,233
1,209
4,783
4,303
1,199
Liability remeasurement (gains) losses
416
(267
)
587
(290
)
116
Changes in fair value of market risk
benefits and associated hedges
14
(56
)
(12
)
(104
)
(24
)
Interest credited
124
125
503
504
127
Acquisition and operating expenses, net of
deferrals
248
225
942
1,285
228
Amortization of deferred acquisition costs
and intangibles
63
74
264
326
65
Interest expense
30
28
118
106
30
Total benefits and expenses
2,128
1,338
7,185
6,130
1,741
Income (loss) from continuing operations
before income taxes
(217
)
529
303
1,365
90
Provision (benefit) for income taxes
(36
)
119
104
319
30
Income (loss) from continuing
operations
(181
)
410
199
1,046
60
Loss from discontinued operations, net of
taxes
(2
)
(2
)
—
—
—
Net income (loss)
(183
)
408
199
1,046
60
Less: net income from continuing
operations attributable to noncontrolling interests
29
27
123
130
31
Less: net income from discontinued
operations attributable to noncontrolling interests
—
—
—
—
—
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders
$
(212
)
$
381
$
76
$
916
$
29
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders:
Income (loss) from continuing operations
available to Genworth Financial, Inc.'s common stockholders
$
(210
)
$
383
$
76
$
916
$
29
Loss from discontinued operations
available to Genworth Financial, Inc.'s common stockholders
(2
)
(2
)
—
—
—
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders
$
(212
)
$
381
$
76
$
916
$
29
Income (loss) from continuing operations
available to Genworth Financial, Inc.'s common stockholders per
share:
Basic
$
(0.47
)
$
0.77
$
0.16
$
1.82
$
0.06
Diluted
$
(0.47
)
$
0.76
$
0.16
$
1.79
$
0.06
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders per share:
Basic
$
(0.47
)
$
0.77
$
0.16
$
1.82
$
0.06
Diluted
$
(0.47
)
$
0.76
$
0.16
$
1.79
$
0.06
Weighted-average common shares
outstanding:
Basic
449.4
496.5
468.8
504.4
460.5
Diluted6
449.4
502.9
474.9
510.9
466.0
Reconciliation of Net Income
(Loss) to Adjusted Operating Income (Loss)
(Amounts in millions, except
per share amounts)
(Unaudited)
Three
Twelve
Three
months ended
months ended
months ended
December 31,
December 31,
September 30,
2023
2022
2023
2022
2023
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders
$
(212
)
$
381
$
76
$
916
$
29
Add: net income from continuing operations
attributable to noncontrolling interests
29
27
123
130
31
Add: net income from discontinued
operations attributable to noncontrolling interests
—
—
—
—
—
Net income (loss)
(183
)
408
199
1,046
60
Less: loss from discontinued operations,
net of taxes
(2
)
(2
)
—
—
—
Income (loss) from continuing
operations
(181
)
410
199
1,046
60
Less: net income from continuing
operations attributable to noncontrolling interests
29
27
123
130
31
Income (loss) from continuing operations
available to Genworth Financial, Inc.'s common stockholders
(210
)
383
76
916
29
Adjustments to income (loss) from
continuing operations available to Genworth Financial, Inc.'s
common stockholders:
Net investment (gains) losses, net13
(38
)
5
(25
)
2
43
Changes in fair value of market risk
benefits attributable to interest rates, equity markets and
associated hedges14
13
(64
)
(22
)
(142
)
(26
)
(Gains) losses on early extinguishment of
debt
(1
)
(1
)
(2
)
6
—
Expenses related to restructuring
—
1
4
2
—
Pension plan termination costs
—
2
—
8
—
Taxes on adjustments
6
12
10
26
(4
)
Adjusted operating income (loss)
$
(230
)
$
338
$
41
$
818
$
42
Adjusted operating income (loss):
Enact segment
$
129
$
120
$
552
$
578
$
134
Long-Term Care Insurance segment
(151
)
204
(242
)
320
(71
)
Life and Annuities segment:
Life Insurance
(206
)
1
(275
)
(111
)
(25
)
Fixed Annuities
9
14
50
62
17
Variable Annuities
14
8
37
21
5
Total Life and Annuities segment
(183
)
23
(188
)
(28
)
(3
)
Corporate and Other
(25
)
(9
)
(81
)
(52
)
(18
)
Adjusted operating income (loss)
$
(230
)
$
338
$
41
$
818
$
42
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders per share:
Basic
$
(0.47
)
$
0.77
$
0.16
$
1.82
$
0.06
Diluted
$
(0.47
)
$
0.76
$
0.16
$
1.79
$
0.06
Adjusted operating income (loss) per
share:
Basic
$
(0.51
)
$
0.68
$
0.09
$
1.62
$
0.09
Diluted
$
(0.51
)
$
0.67
$
0.09
$
1.60
$
0.09
Weighted-average common shares
outstanding:
Basic
449.4
496.5
468.8
504.4
460.5
Diluted6
449.4
502.9
474.9
510.9
466.0
_________________________________________
1
All references reflect amounts available
to Genworth’s common stockholders.
2
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.
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
Company estimate for the fourth quarter of
2023 due to timing of the preparation of the filing(s).
5
Risk-based capital ratio based on company
action level for GLIC consolidated.
6
Under applicable accounting guidance,
companies in a loss position are required to use basic
weighted-average common shares outstanding in the calculation of
diluted loss per share. Therefore, as a result of the company’s
loss from continuing operations available to Genworth Financial,
Inc.’s common stockholders for the three months ended December 31,
2023, the company was required to use basic weighted-average common
shares outstanding in the calculation of diluted loss per share as
the inclusion of shares for performance stock units, restricted
stock units and other equity-based awards of 6.3 million would have
been antidilutive to the calculation. If the company had not
incurred a loss from continuing operations available to Genworth
Financial, Inc.’s common stockholders for the three months ended
December 31, 2023, dilutive potential weighted-average common
shares outstanding would have been 455.7 million.
7
Reflects Genworth’s ownership excluding
noncontrolling interests of $28 million, $31 million and $27
million in the fourth and third quarters of 2023 and fourth quarter
of 2022, respectively.
8
Reflects Genworth’s ownership of equity
including accumulated other comprehensive income and excluding
noncontrolling interests of $855 million, $822 million and $755
million in the fourth and third quarters of 2023 and fourth quarter
of 2022, respectively.
9
The Private Mortgage Insurer Eligibility
Requirements (PMIERs) sufficiency ratio is calculated as available
assets divided by required assets as defined within PMIERs.
10
Genworth’s principal U.S. life insurance
companies: GLIC, GLAIC and GLICNY.
11
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.
12
Genworth Holdings, Inc. held no short-term
investments or U.S. government securities as of December 31, 2023,
September 30, 2023 and December 31, 2022.
13
Net investment (gains) losses were
adjusted for the portion attributable to noncontrolling interests
of $2 million for the twelve months ended December 31,
2023.
14
Changes in fair value of market risk
benefits and associated hedges were adjusted to exclude changes in
reserves, attributed fees and benefit payments of $(1) million and
$(8) million for the three months ended December 31, 2023 and 2022,
respectively, $(10) million and $(38) million for the twelve months
ended December 31, 2023 and 2022, respectively, and $(2) million
for the three months ended September 30, 2023.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240220615637/en/
Investors: Brian Johnson InvestorInfo@genworth.com
Media: Amy Rein Amy.Rein@genworth.com
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