• Net Loss (Q4 2024): $1 million.
• Adjusted Operating Income (Q4 2024): $15 million.
• Net Income (Full Year 2024): $299 million or $0.68 per share.
• Adjusted Operating Income (Full Year 2024): $273 million.
• Debt Reduction (End of 2024): $790 million in holding company debt, down from $856 million at the end of 2023.
• Share Repurchase Program: $565 million spent since May 2022, reducing outstanding shares by 18%.
• CareScout Network Coverage (End of 2024): 86% of the age 65+ census population in the US.
• Adjusted Operating Income Contribution from NAC (Q4 2024): $137 million.
• Pre-tax Statutory Loss (Q4 2024): $33 million.
• Statutory Pre-tax Income (Full Year 2024): $378 million.
• Holding Company Cash and Liquid Assets (End of Q4 2024): $294 million.
• Capital Returns from Enact (Full Year 2024): $289 million.
• Gross Incremental Premium Approvals (Q4 2024): $40 million with an average percentage increase of 23%.
• Total Enforced Rate Action Approvals (Full Year 2024): $343 million with an average percentage increase of 39%.
• Net Present Value (NPV) of MYRAP (2024): Increased by $3.2 billion.
• Adjusted Operating Loss in LTC (Q4 2024): $104 million.
• Adjusted Operating Income in Life and Annuities (Q4 2024): $5 million.
• Corporate and Other Loss (Q4 2024): $23 million.
• Primary Insurance in Force (End of 2024): $269 billion.
• Loss Ratio (Q4 2024): 10%.
• Capital Returns from Enact (Q4 2024): $84 million.
• Share Repurchases (Q4 2024): $51 million at an average price of $7.32 per share.
• Debt Retirement (Q4 2024): $31 million of principal debt for $27 million in cash.

• Warning! GuruFocus has detected 5 Warning Sign with GNW.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Genworth Financial Inc (NYSE:GNW) achieved significant debt reduction, ending 2024 with $790 million in holding company debt, down from $4.2 billion in 2013.
• The company has made substantial progress with its multi-year rate action plan (MYRAP), achieving 87% of the total projected value, contributing $31.2 billion in NPV to its legacy business since 2012.
• Genworth Financial Inc (NYSE:GNW) has successfully expanded its CareScout Quality Network, covering 86% of the age 65+ census population in the US, with nearly 500 providers joining the network.
• The company reported strong statutory pre-tax income of $378 million for the full year, including a $355 million benefit from legal settlements.
• Genworth Financial Inc (NYSE:GNW) has effectively executed its share repurchase program, reducing outstanding shares by 18% since May 2022, and plans to allocate $100 million to $120 million for share repurchases in 2025.

Negative Points

• Genworth Financial Inc (NYSE:GNW) reported a net loss of $1 million for the fourth quarter of 2024.
• The long-term care insurance segment experienced an adjusted operating loss of $104 million due to liability remeasurement losses and unfavorable assumption updates.
• The company anticipates continued volatility and potential losses related to assumption updates and actual variances from expected experience (A to E) in its long-term care insurance segment.
• Corporate and other segments reported a $98 million loss for the year, primarily driven by investments in CareScout business growth initiatives.
• The company faces challenges in its life and annuities segment, with an adjusted operating loss of $38 million for the year, reflecting unfavorable impacts of block runoff.

Q & A Highlights

Q: Can you provide more details on how CareScout Services is expected to generate revenue, and do you anticipate revenue generation in 2025? A: Thomas McInerney, President and CEO, explained that CareScout Services already generates revenue through its assessment business. The new revenue will come from matches between Genworth policyholders and the CareScout Quality Network, where they share part of the discount negotiated with providers. Samir Shah, CEO of CareScout Services, added that they negotiate discounts with providers and share the savings with insurers and policyholders. For example, a 20% discount on home care costs results in CareScout keeping $250 monthly for maintaining the network.

Q: Do you have an update on the timing of the UK court case involving ASA and Sender? A: Thomas McInerney stated that the court case is scheduled to start in early March. If it proceeds to trial without a settlement, it is expected to last about six weeks.

Q: Will the $75 million capital contribution to the new CareScout insurance entity be funded from existing holding company resources? A: Jerome Upton, CFO, confirmed that the funding for the growth initiatives, including the $75 million capital contribution, is included in the base operating plan from a cash flow perspective. The court case with ASA is not included in this base plan.

Q: How is Genworth progressing with its multi-year rate action plan (MYRAP) and what impact has it had? A: Thomas McInerney highlighted that Genworth achieved $343 million in enforced rate action approvals in 2024, with an average percentage increase of 39%. The MYRAP has contributed $31.2 billion in net present value to the legacy business since 2012, achieving 87% of the projected value as of December 31, 2024.

Q: What are the strategic priorities for Genworth moving forward? A: Thomas McInerney outlined three strategic priorities: creating shareholder value through ownership in Enact, maintaining self-sustaining legacy LTC, life, and annuity businesses through MYRAP, and driving future growth with CareScout by expanding its network and services.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.