Genworth Financial (GNW) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $54 million ($0.13 per diluted share), with adjusted operating income of $51 million ($0.12 per diluted share), primarily driven by Enact's $137 million contribution and $76 million in capital returns.

• Enact announced a 14% dividend increase, a $350 million share repurchase authorization, and was added to the S&P Small Cap 600 Index.

• CareScout expanded its Quality Network to cover 90% of the U.S. 65+ population, delivering 576 matches in Q1 and receiving inaugural LTC product approval from the Insurance Compact.

• The company continues to focus on value creation through Enact, maintaining self-sustaining legacy insurance, and scaling CareScout's aging care services.

• Share repurchases totaled $45 million in Q1 2025 ($590 million since inception), with $110 million remaining authorized.

Financial highlights

• Q1 2025 adjusted operating income was $51 million, with Enact as the main contributor; net income was $54 million, down from $139 million in Q1 2024.

• Long-term care insurance segment reported a $30 million adjusted operating loss, and life and annuities had a $33 million loss, both impacted by high mortality and lower investment income.

• Corporate and Other reported a $23 million loss, improved from $38 million loss in the prior year due to non-recurring tax timing.

• Total revenues for Q1 2025 were $1.79 billion, down 4% year-over-year; net investment income was $739 million, down 5% year-over-year.

• Genworth ended Q1 with $211 million in cash and liquid assets.

Outlook and guidance

• Enact expects to return similar levels of capital to shareholders in 2025 as in 2024, with a new $350 million share repurchase authorization.

• The company plans to invest $45–$50 million in CareScout Services and $75 million in CareScout Insurance in 2025.

• CareScout's new insurance product is on track for launch in the second half of 2025, targeting approvals in 30–35 states.

• Management expects continued volatility in long-term care insurance results due to assumption updates and experience variances.