Genworth Financial Inc (GNW) Reports Mixed Third Quarter 2023 Results

Net Income Declines While Adjusted Operating Income Shows Resilience Amidst Market Volatility

  • Genworth Financial Inc (GNW) posted a net income of $29 million for Q3 2023, a significant decrease from the previous year's $136 million.
  • Adjusted operating income stood at $42 million, down from $158 million in Q3 2022.
  • Enact segment continues to perform strongly, while Long-Term Care Insurance faces challenges with liability remeasurement.
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On November 8, 2023, Genworth Financial Inc (GNW, Financial) released its earnings report for the third quarter ended September 30, 2023. The company reported a net income of $29 million, a stark decline from the $136 million reported in the same quarter of the previous year. Adjusted operating income also saw a decrease to $42 million, compared to $158 million in Q3 2022. Despite these challenges, President & CEO Tom McInerney expressed satisfaction with the strong financial performance of Enact, a subsidiary of Genworth, and the company's strategic execution to maximize shareholder value.

Financial Performance Overview

Genworth's earnings per diluted share for the quarter were $0.06, a decrease from the $0.27 reported in the third quarter of 2022. Adjusted operating income per diluted share was $0.09, down from $0.31 in the prior year. The weighted-average diluted shares were 466.0 million, reflecting a reduction from 509.3 million in Q3 2022.

Segment Performance Highlights

The Enact segment reported an adjusted operating income of $134 million, a slight decrease from $156 million in Q3 2022. The primary new insurance written was $14,391 million, staying relatively stable compared to the previous year. The loss ratio for the quarter was 7%, showing an improvement from the negative percentages reported in the past.

Long-Term Care Insurance (LTC) faced volatility, with an adjusted operating loss of $71 million, a significant shift from the $26 million income in Q3 2022. Premiums were $621 million, and net investment income was $482 million, both showing a decrease from the previous year. Liability remeasurement losses were reported at $104 million, and the segment experienced unfavorable actual to expected experience adjustments.

The Life and Annuities segment reported a combined adjusted operating loss of $3 million, with life insurance, fixed annuities, and variable annuities contributing to the overall performance.

Capital Position and Shareholder Returns

The PMIERs Sufficiency Ratio, a measure of financial strength for mortgage insurers, stood at 162%, consistent with the previous quarter and down from 174% in Q3 2022. Genworth continues to focus on returning capital to shareholders through share repurchase programs and debt reduction strategies.

Non-GAAP Measures and Forward-Looking Statements

Genworth Financial Inc (GNW, Financial) utilizes non-GAAP financial measures such as adjusted operating income to provide a clearer picture of the company's operating performance. These measures exclude certain items that may not be indicative of the ongoing business operations. The reconciliation of net income to adjusted operating income is provided in the company's financial tables.

While the company has provided forward-looking statements in its earnings release, it cautions readers that these statements are subject to uncertainties and risks that could cause actual results to differ materially.

Conference Call and Additional Information

Genworth will host a conference call on November 9, 2023, to discuss the third quarter results. Investors are encouraged to review the press release, summary presentation, and financial supplement available on the company's website.

For more detailed information on Genworth Financial Inc (GNW, Financial)'s third quarter 2023 financial results, please visit

Explore the complete 8-K earnings release (here) from Genworth Financial Inc for further details.