Genworth Financial (GNW) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $47 million ($0.12 per diluted share), with adjusted operating income excluding Closed Block at $109 million ($0.28 per diluted share), reflecting strong Enact performance and continued CareScout growth.

• Enact contributed $140 million in adjusted operating income, distributed $99 million in capital returns, and saw a 30% increase in new insurance written, supported by a $39 million pre-tax reserve release.

• Share repurchases totaled $66 million in Q1 2026, with $175 million remaining under the current authorization as of April 30, 2026, and $856 million repurchased since program inception.

• CareScout expanded its Quality Network to over 2,000 senior living communities and 1,065 home care locations, delivering 1,486 matches and achieving 97% home care coverage for the 65+ population.

• Closed Block segment reported a $32 million adjusted operating loss, improved from a $63 million loss in Q1 2025, with long-term care insurance impacted by higher claims and lower terminations, partially offset by insurance recoveries.

Financial highlights

• Total revenues were $1.78 billion, nearly flat year-over-year, with net investment income rising 4% to $766 million.

• Enact’s PMIERS sufficiency ratio was 162%, or $1.9 billion above requirements, and primary delinquency rate was 2.6%.

• Holding company cash and liquid assets were $166 million at quarter-end.

• Net investment losses of $26 million compared to gains of $27 million in Q1 2025, mainly due to realized losses on fixed maturity securities and lower private equity performance.

• Debt-to-capital ratio maintained at 25% or less; $778 million holding company debt outstanding.

Outlook and guidance

• Expect to receive approximately $405 million in capital returns from Enact for full year 2026, with continued focus on capital returns, CareScout growth, and maintaining self-sustaining legacy insurance operations.

• Plan to allocate $195–$225 million to share repurchases in 2026, subject to market conditions.

• CareScout Services revenue expected to reach $25 million in 2026, targeting 7,500 matches, with $50–$55 million investment planned to support scaling and technology build-out.

• Ongoing rollout of Care Assurance insurance product, with expansion into new states and education initiatives.

• Enact announced an increase in its quarterly dividend from $0.21 to $0.24 per share, payable in June 2026.