Genworth Financial — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $41 million ($0.11 per diluted share) for the quarter ended September 30, 2026, compared to net income of $116 million ($0.28 per diluted share) in the prior year quarter and net income of $47 million ($0.12 per diluted share) in the prior quarter.
• Adjusted operating income, excluding Closed Block, was $102 million ($0.27 per diluted share), down from $113 million ($0.28 per diluted share) in the prior year quarter and $112 million ($0.29 per diluted share) in the prior quarter.
• Net investment income, net of taxes, was $603 million, down from $660 million in the prior quarter and $631 million in the prior year, primarily due to lower income from limited partnerships and U.S. Government Treasury Inflation Protected Securities.
• Net investment losses, net of taxes, decreased net income by $9 million, compared to net investment gains of $29 million in the prior quarter and $78 million in the prior year.
• Holding company cash and liquid assets totaled $320 million at quarter-end, up from $215 million in the prior quarter and $254 million in the prior year quarter.

Guidance and Future Outlook:

• Management stated the company is well-positioned to drive sustainable long-term growth and deliver long-term value to shareholders while executing its strategy.
• Forward-looking statements indicate expectations that quarterly adverse variances between actual and expected experience could persist, resulting in future remeasurement losses in the Closed Block segment.
• The company anticipates completing reviews in the fourth quarter of 2026 that may impact estimates, assumptions, and valuations.

Business Segments and Product Lines:

• Enact: Reported adjusted operating income of $132 million, down from $134 million in the prior year quarter and $143 million in the prior quarter. Primary new insurance written was $14.1 billion, a 7% decrease from the prior quarter due to higher mortgage rates, while primary insurance in-force increased 1% year-over-year to $275.1 billion. The loss ratio was 20%, up from 15% in the prior year quarter. Enact entered a quota share reinsurance agreement covering the 2028 book year and paid a quarterly dividend of $0.24 per share.
• CareScout: Delivered 1,532 matches in the quarter and continued expanding the CareScout Quality Network. Care Assurance Worksite launched in the quarter and was approved in 40 states as of September 30, 2026. CareScout Services revenues were $7 million, up from $3 million in the prior year quarter and $6 million in the prior quarter.
• Closed Block: Reported adjusted operating loss of $146 million, compared to a loss of $96 million in the prior year quarter and $110 million in the prior quarter. Results were driven by an $111 million pre-tax adverse experience loss from lower terminations (primarily mortality) and higher benefit utilization in long-term care. Statutory pre-tax loss for the legacy insurance companies was $143 million.
• Corporate and Other: Reported adjusted operating loss of $30 million, compared to a loss of $21 million in the prior year quarter and $31 million in the prior quarter, driven by continued investment in CareScout and debt service.

Market and Competitive Landscape:

• Enact's PMIERs sufficiency ratio remained strong at 158%, $1,827 million above requirements, down from 162% in the prior year quarter and 161% in the prior quarter.
• Legacy insurance companies' Risk-Based Capital (RBC) ratio was 274%, down from 303% in the prior year quarter and 286% in the prior quarter.
• Primary new insurance written decreased due to higher mortgage rates, while insurance in-force grew as new business outpaced lapses and cancellations.

Risks and Challenges:

• Risks include the inability to successfully launch new lines of business, failure to maintain the self-sustainability of the Closed Block, and delays in achieving desired in-force management actions or premium rate increases.
• Potential impacts from litigation involving AXA S.A. and Santander Cards UK Limited, including uncertainties regarding potential recovery amounts or appeals.
• Regulatory risks related to PMIERs requirements, Fannie Mae/Freddie Mac eligibility, and changes in the U.S. mortgage insurance market.
• Economic risks such as recession, declining home prices, and adverse changes in interest rates or credit cycles.
• Risks associated with the inability to receive dividends or capital returns from Enact Holdings, which could impact holding company liquidity.

Management Commentary and Tone:

• Tom McInerney, President & CEO, stated that Genworth executed with discipline in the third quarter, advancing progress against three strategic priorities: capital returns from Enact, expanding CareScout's reach, and strengthening the self-sustainability of the Closed Block.
• Management highlighted a balanced approach to capital allocation supported by Enact's significant capital returns.

Other Key Points:

• Repurchased $80 million of shares in the quarter at an average price of $10.05 per share; total repurchases since inception through September 30, 2026, reached $998 million at an average price of $6.66 per share.
• Announced a new $500 million share repurchase authorization.
• Received $122 million in capital returns from Enact during the quarter.
• Reduced holding company debt principal outstanding by $21 million in the quarter and $36 million year-to-date, repurchased at a discount.
• Approximately $35.0 billion estimated net present value has been achieved since 2012 from In-Force Rate Actions (IFAs) on the LTC2 MYRAP.
• Enact paid a quarterly dividend of $0.24 per share.