Genworth Financial, Inc.

What they do

Genworth operates two reportable segments: Enact, which sells private mortgage insurance through subsidiaries of publicly traded Enact Holdings (Nasdaq: ACT), and Closed Block, the legacy long-term care, life and annuity business that no longer sells new products. Corporate and Other holds the start-up businesses CareScout Services (care provider network and senior living placement) and CareScout Insurance, which began selling an individual long-term care product in October 2025. Genworth consolidates Enact through an indirect majority voting interest.

Revenue drivers

• Enact (private mortgage insurance) — Primary insurance in-force was $274.0B at Q2 2026; Q2 2026 adjusted operating income was $143M and primary new insurance written was $15,199M. Enact is the main earnings and capital engine, paying a quarterly dividend of $0.24 per share and returning $103M to Genworth in the quarter.
• Closed Block (legacy LTC, life, annuity) — In-force long-term care, life and annuity policies that are no longer sold but are serviced and managed; the segment is managed for self-sustainability, with a legacy RBC ratio of 286% at Q2 2026.
• Net investment income — Total investments were $58,973M at June 30, 2026; Q2 2026 net investment income was $836M, up from $802M a year earlier, helped by limited partnerships and Treasury Inflation-Protected Securities.
• CareScout Services and CareScout Insurance — Fee-based aging-care services and a new long-term care product; Corporate and Other reported an adjusted operating loss of $31M in Q2 2026 from investment in CareScout growth.

Recent performance

Q2 2026 net income was $47M, or $0.12 per diluted share, with adjusted operating income excluding Closed Block of $112M, or $0.29 per diluted share. Total revenues were $1,901M versus $1,796M in Q2 2025, as net investment income rose to $836M and net investment gains of $37M compared with losses of $28M a year earlier. Enact reported adjusted operating income of $143M, a 14% loss ratio, and a PMIERs sufficiency ratio of 161%, $1,894M above requirements. Corporate and Other posted a $31M adjusted operating loss, and the six-month net income available to common stockholders was $94M versus $105M in the first half of 2025.

Strategy

Management's stated priorities are creating value, driving growth, and maintaining self-sustaining legacy insurance subsidiaries. Enact capital returns fund strategic initiatives including new CareScout products, share repurchases and debt reduction; Genworth received $103M from Enact in Q2 2026 and repurchased $62M of shares in the quarter, $918M since program inception through June 30, 2026. CareScout is expanding its provider network and acquired Seniorly in October 2025 to add assisted living communities and direct-to-consumer placement. Genworth ceased LTC sales at GLIC in October 2025 and now sells individual LTC through CareScout Insurance. Care Assurance Worksite was approved in 34 states as of June 30, 2026, ahead of a third-quarter launch.

Risks

• Dependence on Enact dividends — Genworth Financial and Genworth Holdings depend on dividends and distributions from Enact Holdings and its subsidiaries to meet their obligations.
• Reserve and assumption deviations — The company may be required to increase reserves if actual experience deviates from estimates and actuarial assumptions, which could materially affect results.
• New business execution — New lines such as CareScout may not be successful or may subject the company to additional risks.
• Insurance regulation — State insurance regulators have broad powers, including approving premium increases and benefit reductions and setting capital and reserve standards, which could limit growth or raise costs.

Outlook

Management points to the third-quarter 2026 launch of Care Assurance Worksite, which was approved in 34 states as of June 30, 2026, and continued expansion of the CareScout network, which delivered 1,459 matches in the quarter. It expects continued capital returns from Enact to fund CareScout, share repurchases and opportunistic debt reduction. The interim President and CEO said the quarter's actions position Genworth to continue to drive sustainable long-term growth and create shareholder value.