GENWORTH FINANCIAL INC
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
GNW$8.70-2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001628280-26-054344
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001628280-26-071072
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 352 previous paragraphs and 371 current paragraphs.
209 unchanged; 115 reworded; 42 added; 21 removed; 7 previous and 5 current paragraphs rearranged.
Tables are not compared: 33 previous and 33 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
On September 18, 2026, A.M. Best Company, Inc. (“A.M. Best”) upgraded the financial strength rating of Enact Mortgage Insurance Corporation (“EMICO”) to “A” from “A-” and revised the outlook to stable from positive.
Current report
On September 17, 2026, A.M. Best revised the outlook to stable from positive and affirmed the financial strength rating of “C++” of GLIC and Genworth Life Insurance Company of New York. A.M. Best also affirmed the financial strength rating of “B-” of Genworth Life and Annuity Insurance Company and the credit rating of “bb-” of Genworth Financial and Genworth Holdings with an outlook of stable.
Current report
(3)The three and nine months ended September 30, 2025 included a $27 million tax benefit related to a release of a portion of the valuation allowance on certain deferred tax assets.
Current report
(1)As a result of the loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended September 30, 2026, we used basic weighted-average common shares outstanding in the calculation of diluted earnings (loss) per share for the three months ended September 30, 2026, as the inclusion of 5.8 million performance stock units, restricted stock units and other equity-based awards would have been antidilutive to the calculation. Had we not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended September 30, 2026, diluted weighted-average common shares outstanding would have been 381.3 million.
Current report
On October 22, 2026, the President of the United States issued the Decreasing Housing Costs for the American People Executive Order, which contemplates that, if the FHFA determines it is in the best interests of the GSEs, the FHFA and the American public, the FHFA shall direct the GSEs to establish a pilot program applicable only to mortgages made after the program’s establishment and which meet certain specified criteria. Under the pilot program, the GSEs would direct servicers, to the extent permitted by law and operationally feasible, to notify borrowers promptly when mortgage insurance on their mortgage may be canceled. The potential impact on the mortgage insurance industry will depend on the ultimate design and implementation of the pilot program.
Current report
New insurance written of$14.1 billion in thethird quarter of 2026 was relatively consistent with thethird quarter of 2025. Enact’s primary persistency rate was 81% and 83% during the third quarter of 2026 and 2025, respectively.
Current report
Net earned premiums decreased in the third quarter of 2026 compared to the third quarter of 2025 primarily due to slightly lower average premium rates and higher ceded premiums, partially offset by assumed premium and insurance in-force growth.
Current report
Recent transactions
Current report
On September 30, 2026, Enact entered into a quota share reinsurance agreement with a panel of reinsurers. Under the agreement, EMICO will cede approximately 35% of a portion of its expected new insurance written for the 2028 book year.
Current report
(1)Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $2 million for the three months ended September 30, 2026.
Current report
Premiums decreased mainly driven by slightly lower average premium rates and higher ceded premiums, partially offset by assumed premium and insurance in-force growth in the current year.
Current report
Acquisition and operating expenses, net of deferrals, decreased largely due to higher ceding commissions received in the current year.
Current report
Premiums decreased largely driven by slightly lower average premium rates and higher ceded premiums, partially offset by insurance in-force and assumed premium growth in the current year.
Current report
Policy fees and other income increased largely due to higher broker fee rebates related to reinsurance agreements in the current year.
Current report
Benefits and other changes in policy reserves were impacted by favorable prior year reserve development in both years and increased in the current year primarily due to lower reserve releases. Enact released reserves of $113 million in the current year primarily driven by favorable cure performance and loss mitigation activities, compared to reserve releases of $140 million in the prior year.
Current report
Acquisition and operating expenses, net of deferrals, decreased largely due to higher ceding commissions received in the current year.
Current report
The expense ratio decreased for thethree and nine months ended September 30, 2026 primarily driven by higher ceding commissions received in the current year.
Current report
Annual review of cash flow assumptions
Current report
We will complete the required annual review of our cash flow assumptions for our long-term care insurance, life insurance and annuity products in the fourth quarter of 2026.
Current report
For our long-term care insurance products, we are primarily focused on benefit utilization, mortality, claim terminations and management actions, including benefit solutions, in-force rate actions and claim savings from the CareScout Quality Network. For our life insurance and annuity products, we are reviewing mortality, lapse rates and the potential impacts of recent changes in interest rates.
Current report
While our reviews are still underway and not yet complete, based on our early analysis, the financial impacts from our U.S. GAAP assumption updates could be materially unfavorable in the aggregate, particularly in our long-term care insurance products largely due to the cost of care inflation and related utilization trends we are observing. Any impact is expected to be a relatively small percentage change compared to the overall size of our liability for future policy benefits of $44.7 billion, at the locked-in discount rate, for our long-term care insurance products as of September 30, 2026. For capped cohorts, these updates would be reported immediately in earnings. For uncapped cohorts, any changes would impact the net premium ratio and therefore have a more muted impact as further discussed below.
Current report
We will also complete statutory cash flow testing for our legacy insurance subsidiaries in the fourth quarter of 2026. Under cash flow testing for our long-term care insurance products, changes impacting active life reserves are included in our margin review and only impact statutory income if the margin falls below zero. However, changes to our claim reserve assumptions are immediately reflected in statutory income. While our statutory process is not yet complete and work remains, our early assessment is that the margin in GLIC should remain positive.
Current report
In October 2026, we entered into a replacement reinsurance structure for a portion of our universal life insurance products in response to the National Association of Insurance Commissioners (“NAIC”) Statutory Accounting Principles Working Group interpretation 2024-06, which contained industry-wide changes in statutory accounting guidance that were adopted in December 2025 and are effective as of December 31, 2026. The new structure allows us to retain statutory reserve credit while complying with the new guidance. In the fourth quarter of 2026, we expect the recapture to result in a loss recognized in the statutory summary of operations that will be partially offset by a deferred reinsurance gain on the new cession recognized in statutory surplus that will be amortized over time. As a result, we expect an unfavorable impact on the GLIC consolidated RBC ratio as well. There is no U.S. GAAP impact from the reinsurance restructuring.
Current report
•The adjusted operating loss in our long-term care insurance products increased primarily driven by lower net investment income in the current year as further explained below.
Current report
•Adjusted operating income in our annuity products decreased principally from unfavorable mortality experience in the current year compared to favorable experience in the prior year.
Current report
•Our annuity products decreased $5 million primarily driven by lower interest accretion in the current year principally due to block runoff.
Current report
•Our annuity products had a liability remeasurement loss of $4 million in the current year largely due to unfavorable mortality experience compared to a gain of $7 million in the prior year primarily driven by favorable mortality experience.
Current report
•Our annuity products had a liability remeasurement loss of $3 million in the current year largely due to unfavorable mortality experience compared to a gain of $9 million in the prior year primarily driven by favorable mortality experience.
Current report
(2)The three months ended September 30, 2025 included a $27 million tax benefit related to a release of a portion of the valuation allowance on certain deferred tax assets.
Current report
The adjusted operating loss increased primarily from a $7 million tax benefit related to a release of a portion of the valuation allowance on certain deferred tax assets in the prior year that did not recur.
Current report
(2)The nine months ended September 30, 2025 included a $27 million tax benefit related to a release of a portion of the valuation allowance on certain deferred tax assets.
Current report
•The U.S. Federal Reserve increased interest rates by 25 basis points during the third quarter of 2026 amid ongoing inflationary pressures.
Current report
•Credit spreads widened during the third quarter of 2026 compared to June 30, 2026 but remained near historically low levels. Elevated corporate debt issuance, including issuance to fund artificial intelligence-related capital spending and data center development, contributed to spread volatility during the third quarter of 2026. Equity markets remained strong, with major U.S. equity indices reaching record highs, although market sentiment moderated toward the end of the third quarter of 2026 amid rising interest rates and crude oil prices.
Current report
•We recorded $45 million and $24 million of lower net unrealized gains on limited partnerships and equity securities, respectively, driven by less favorable private and public equity market performance, respectively, in the current year.
Current report
•We recorded $126 million of lower net unrealized gains on limited partnerships driven by less favorable private equity market performance in the current year.
Current report
•Cash and cash equivalents increased $171 million primarily attributable to investment income and premiums received, partially offset by benefit and claim payments in the current year.
Current report
•Deferred acquisition costs decreased $132 million largely driven by amortization in our life and long-term care insurance products in the current year.
Current report
•The deferred tax asset decreased $169 million principally from the net effect of changes in the discount rate used to measure the liability for future policy benefits and related reinsurance recoverables due to an increase in the single-A interest rate. In addition, we increased our valuation allowance related to capital deferred tax assets by $150 million through other comprehensive income (loss) in the third quarter of 2026. The decrease was partially offset by an increase in the deferred tax asset related to net unrealized losses on investments and derivatives due to rising interest rates, as well as increases related to DAC and future annuity and contract benefits in the current year. For a discussion of the increase in the valuation allowance, see note 14 in our unaudited condensed consolidated financial statements under “Item 1—Financial Statements.”
Current report
•Separate account assets decreased $166 million primarily due to surrenders, withdrawals and benefit payments, partially offset by favorable equity market performance in the current year.
Current report
•Market risk benefit liabilities decreased $98 million largely due to favorable interest rate impacts in the current year.
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Removed paragraphs (21)
Previous report
New insurance written of$15.2 billion in thesecond quarter of 2026 increased 15% compared to thesecond quarter of 2025 primarily driven by larger estimated purchase and refinance mortgage insurance markets in the current year. Enact’s primary persistency rate was 80% and 82% during the second quarter of 2026 and 2025, respectively.
Previous report
Net earned premiums in the second quarter of 2026 were consistent with the second quarter of 2025 as slightly lower average premium rates and higher ceded premiums were offset by insurance in-force and assumed premium growth.
Previous report
(1)Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million for the three months ended June 30, 2025.
Previous report
Premiums were consistent as slightly lower average premium rates and higher ceded premiums were offset by insurance in-force and assumed premium growth in the current year.
Previous report
(2)We define “NM” as not meaningful for increases or decreases greater than 200%.
Previous report
Premiums decreased modestly as slightly lower average premium rates and higher ceded premiums were largely offset by insurance in-force and assumed premium growth in the current year.
Previous report
Benefits and other changes in policy reserves in both years were impacted by favorable reserve development related to prior years and increased primarily driven by lower reserve releases in the current year. Enact released reserves of $76 million in the current year primarily driven by favorable cure performance and loss mitigation activities, compared toreserve releases of$95 million in the prior year.
Previous report
Acquisition and operating expenses, net of deferrals, decreased primarily driven by higher ceding commissions, partially offset by higher employee-related expenses in the current year.
Previous report
The expense ratio remained relatively consistent for thethree and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025.
Previous report
•Our life insurance products increased $11 million largely due to higher operating expenses and legal fees in the current year.
Previous report
Premiums
Previous report
•Our long-term care insurance products increased $52 million largely due to higher income of $35 million from limited partnerships, $11 million from TIPS and $10 million from company-owned life insurance investments in the current year.
Previous report
•Our life insurance products increased $15 million largely due to higher operating expenses in the current year.
Previous report
•Our annuity products decreased $6 million mainly driven by lower operating expenses in the current year.
Previous report
The adjusted operating loss increased primarily from continued investment in CareScout Services in the current year, partially offset by an increase in revenue as the business grows. The increase was also driven by higher employee-related expenses in the current year.
Previous report
During thethree months ended June 30, 2026, our investment portfolio was impacted, and we believe will continue to be impacted, by the following macroeconomic trends:
Previous report
•The U.S. Federal Reserve kept interest rates unchanged during the second quarter of 2026 while it continued to monitor labor market conditions and inflation, including impacts from rising energy prices due to developments in the Middle East.
Previous report
•Credit spreads tightened during the second quarter of 2026 compared to March 31, 2026 as investor sentiment improved and market conditions stabilized following earlier volatility associated with geopolitical tensions in the Middle East, as well as from moderating concerns regarding the impact of artificial intelligence on software companies. Equity markets mirrored this recovery, with major U.S. equity indices achieving all-time highs during the second quarter of 2026.
Previous report
•We recorded $27 million of higher net unrealized gains on equity securities from more favorable equity market performance in the current year. We recorded $21 million of net unrealized losses on limited partnerships in the current year driven by unfavorable private equity market performance compared to $25 million of net unrealized gains in the prior year driven by favorable performance.
Previous report
•The current year included $22 million of higher net unrealized gains on equity securities driven by more favorable equity market performance. We recorded $18 million of net unrealized losses on limited partnerships in the current year driven by unfavorable private equity market performance compared to $63 million of net unrealized gains in the prior year driven by favorable performance.
Previous report
Under prior agreements between Genworth and AXA, Genworth is entitled to share in funds that AXA recovers from third parties related to the mis-selling losses. In November 2025, we received £15 million ($20 million) from AXA related to a portion of the liability judgment not subject to dispute. If the appeal is resolved in favor of AXA, Genworth could be entitled to receive a total recovery of approximately$750 million, depending upon the applicable exchange rate at that time. Loss recoveries have not been factored into our capital allocation plans, including the sizing of the share repurchase program authorized in September 2025. We would expect to deploy any loss recoveries in line with our stated capital allocation priorities, which are investing in growth through CareScout, returning cash to shareholders through our share repurchase program and opportunistically paying down debt.
Reworded paragraphs (115)
Previous wording
This report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,” “may” or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Examples of forward-looking statements include statements we make relating to potential dividends or share repurchases; future return of capital by Enact Holdings, Inc. (“Enact Holdings”), including share repurchases, and quarterly and special dividends; the cumulative economic benefit of approved and future rate increases and benefit reductions included in our multi-year in-force rate action plan and other reduced benefit options associated with the long-term care insurance products in our Closed Block segment; planned investments in and our outlook for new lines of business or new insurance and other products and services, such as those we are pursuing with our CareScout business (“CareScout”), including through our CareScout services business (“CareScout Services”) and our CareScout insurance business (“CareScout Insurance”); future financial performance, including the expectation that quarterly adverse variances between actual and expected experience could persist resulting in future remeasurement losses in our Closed Block segment; the resolution of the appeal or any potential litigation recovery amounts in connection with the AXA S.A. (“AXA”) and Santander Cards UK Limited (“Santander”) litigation, and Genworth’s planned use of proceeds from any recovery in connection with the litigation, including share repurchases, debt repurchases and investments in new businesses; future financial condition and liquidity of our businesses; and statements we make regarding the outlook of the U.S. economy.
Current wording
This report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,” “may” or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Examples of forward-looking statements include statements we make relating to potential dividends or share repurchases; future return of capital by Enact Holdings, Inc. (“Enact Holdings”), including share repurchases, and quarterly and special dividends; the cumulative economic benefit of approved and future rate increases and benefit reductions included in our multi-year in-force rate action plan and other reduced benefit options associated with the long-term care insurance products in our Closed Block segment; planned investments in and our outlook for new lines of business or new insurance and other products and services, such as those we are pursuing with our CareScout business (“CareScout”), including through our CareScout services business (“CareScout Services”) and our CareScout insurance business (“CareScout Insurance”); future financial performance, including the expectation that quarterly adverse variances between actual and expected experience could persist resulting in future remeasurement losses in our Closed Block segment; any potential future judgment, recovery and/or payment amounts in connection with the AXA S.A. (“AXA”) and Santander Cards UK Limited (“Santander”) litigation, and Genworth’s planned use of proceeds from any potential recovery in connection with the litigation, including share repurchases, debt repurchases and investments in new businesses; future financial condition and liquidity of our businesses; and statements we make regarding the outlook of the U.S. economy.
Previous wording
•our failure to maintain the self-sustainability of Genworth Life Insurance Company and its subsidiaries, collectively referred to as “Closed Block” or our “legacy insurance subsidiaries,” including as a result of the inability to achieve desired levels of in-force management actions and/or the timing of future premium rate increases and associated benefit reductions taking longer to achieve than originally assumed; other regulatory actions negatively impacting our life insurance businesses;
Current wording
•our failure to maintain the self-sustainability of Genworth Life Insurance Company (“GLIC”) and its subsidiaries, collectively referred to as “Closed Block” or our “legacy insurance subsidiaries,” including as a result of the inability to achieve desired levels of in-force management actions and/or the timing of future premium rate increases and associated benefit reductions taking longer to achieve than originally assumed; other regulatory actions negatively impacting our life insurance businesses;
Previous wording
•inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results (including as a result of any changes in connection with quarterly, annual or other reviews);
Current wording
•inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results (including as a result of any changes in connection with quarterly, annual or other reviews, including reviews we expect to complete in the fourth quarter of 2026);
Previous wording
•the impact on any potential recovery in the AXA and Santander litigation resulting from a successful appeal, significant delays or any other adverse development in the litigation;
Current wording
•the impact on any potential recovery and/or payment amounts in the AXA and Santander litigation resulting from a successful appeal (should permission for appeal be granted), significant delays or any other adverse development in the litigation;
Previous wording
•changes in economic, market and political conditions, labor shortages and fluctuating interest rates; unanticipated financial events, which could lead to market-wide liquidity problems and other significant market disruption resulting in losses, defaults or credit rating downgrades of other financial institutions; deterioration in economic conditions, a recession or a decline in home prices, all of which could be driven by many potential factors, including a U.S. federal government shutdown; an increase in the cost of care impacting our long-term care insurance products included in our Closed Block segment; changes in international trade policy, including the potential impact of new or increased tariffs, retaliatory policies or actions from other countries, and trade wars or other events that lead to political and economic instability; changes in government or monetary policies; changes within regulatory agencies; changes in immigration policy; and fluctuations in international securities markets;
Current wording
•changes in economic, market and political conditions, labor shortages and fluctuating interest rates; unanticipated financial events, which could lead to market-wide liquidity problems and other significant market disruption resulting in losses, defaults or credit rating downgrades of other financial institutions; deterioration in economic conditions, a recession or a decline in home prices, all of which could be driven by many potential factors, including a U.S. federal government shutdown; an increase in the cost of care impacting the long-term care insurance products included in our Closed Block segment; changes in international trade policy, including the potential impact of new or increased tariffs, retaliatory policies or actions from other countries, and trade wars or other events that lead to political and economic instability; changes in government or monetary policies; changes within regulatory agencies; changes in immigration policy; and fluctuations in international securities markets;
Previous wording
•the inability to retain, attract and motivate qualified employees or senior management;
Current wording
•the inability to attract, retain and motivate qualified employees or senior management, or our succession plans not operating effectively;
Previous wording
•a decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations;
Current wording
•a decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations, including as a result of a potential Federal Housing Finance Agency (“FHFA”)-directed pilot program in response to a recent executive order issued by the President of the United States;
Previous wording
We continue to create shareholder value through Enact’s growing market value and capital returns. Enact Holdings provided $103 million of capital returns to Genworth Holdings in the second quarter of 2026. Enact Holdings expects to return $550 million to $600 million of capital to its shareholders for the full year 2026, an increase from its earlier expectation of approximately $500 million. Based on our approximate 81% ownership, we expect to receive $445 million to $485 million in capital returns from Enact Holdings for the full year 2026. We expect capital returns from Enact will continue to benefit our shareholders by funding our strategic initiatives, including new CareScout products and services, as well as share repurchases and opportunistic debt reduction. Since the initial authorization of Genworth Financial’s share repurchase program in May 2022 and through July 31, 2026, we have repurchased $922 million worth of shares of Genworth Financial’s common stock. For additional information on our share repurchase program, see “—Liquidity and Capital Resources.”
Current wording
We continue to create shareholder value through Enact’s growing market value and capital returns. Enact Holdings provided $122 million of capital returns to Genworth Holdings in the third quarter of 2026 and expects to return approximately $600 million of capital to its shareholders for the full year 2026. Based on our approximate 81% ownership, we expect to receive capital returns from Enact Holdings of approximately $485 million for the full year 2026. We expect capital returns from Enact will continue to benefit our shareholders by funding our strategic initiatives, including new CareScout products and services, as well as share repurchases and opportunistic debt reduction.
Previous wording
During the second quarter of 2026, CareScout Services expanded the CareScout Quality Network to more than 1,100 active home care locations and continued integrating senior living communities. The network now includes local advisors in major markets who help guide families in their search for high-quality senior living communities. Together with CareScout Services’ nationwide network of nurses, these local advisors provide families with access to both expert guidance and clinical expertise.
Current wording
Through November 2, 2026, CareScout Services expanded the CareScout Quality Network to more than 1,200 active home care locations and approximately 1,200 senior living communities. The network also includes local advisors in major markets who help guide families in their search for high-quality senior living communities. Together with CareScout Services’ nationwide network of nurses, these local advisors provide families with access to both expert guidance and clinical expertise.
Previous wording
We continue to expand our offerings to employers and select affinity groups as we seek to introduce the CareScout brand to more consumers, broaden access to our services and generate additional fee-based revenues over time. We expect to invest approximately $50 million to $55 million in CareScout Services for the full year 2026 to further scale the business. This investment will support the continued build-out of our technology-enabled platform, the addition of new products and growth across both consumer and business-to-business channels.
Current wording
We continue to expand the availability of our offerings by working with other insurance carriers, employers and select affinity groups as we seek to introduce the CareScout brand to more consumers, broaden access to our services and generate additional fee-based revenues over time. We expect to invest approximately $55 million in CareScout Services for the full year 2026 to further scale the business. This investment will support the continued build-out of our technology-enabled platform, the addition of new products, and growth across both consumer and business-to-business channels.
Previous wording
We continue to build out differentiated product offerings and expand our distribution capability in CareScout Insurance. Our Care Assurance worksite product, a version of CareScout Insurance’s individual standalone long-term care insurance product that will be available through employers, is ready for launch in the third quarter of 2026. The Care Assurance offerings are differentiated in the long-term care insurance market by giving customers and their families access to a more holistic aging experience through CareScout Services, including access to the CareScout Quality Network, wellness support tools and care planning services. While we expect adoption to build gradually, we believe the Care Assurance offerings create significant value for both our customers and distribution partners. We are also developing additional offerings, including hybrid long-term care insurance products, as part of a broader set of funding solutions designed to meet evolving consumer needs and address critical gaps in retirement income and retirement security in the marketplace. We do not anticipate any additional capital investment in CareScout Insurance in 2026 following the $85 million investment made in 2025 to enable the launch of the business.
Current wording
We continue to build out differentiated product offerings and expand our distribution capability in CareScout Insurance. In the third quarter of 2026, we launched our Care Assurance worksite product, a version of CareScout Insurance’s individual standalone long-term care insurance product that is available through employers. The Care Assurance offerings are differentiated in the long-term care insurance market by giving customers and their families access to a more holistic aging experience through CareScout Services, including access to the CareScout Quality Network, wellness support tools and care planning services. We do not anticipate any additional capital investment in CareScout Insurance in 2026 following the $85 million investment made in 2025 to enable the launch of the business. Future capital contributions may vary based on sales volume and mix, investment performance and operating expenses.
Previous wording
While it will take time to scale these businesses, we believe our investments in CareScout Services and CareScout Insurance will drive sustainable future growth for Genworth and are aligned with our overarching priority to maximize long-term value for our shareholders. We will continue to take a disciplined approach in our capital allocation strategy, balancing investments in CareScout growth initiatives with returning value to shareholders and opportunistically retiring debt.
Current wording
While it will take time to scale these businesses, we believe our investments in CareScout will drive sustainable future growth for Genworth and are aligned with our overarching priority to maximize long-term value for our shareholders. We will continue to take a disciplined approach in our capital allocation strategy, balancing investments in CareScout growth initiatives with returning value to shareholders and opportunistically retiring debt.
Previous wording
We continue to actively manage our self-sustaining, customer-centric legacy insurance subsidiaries, comprising long-term care insurance, life insurance and annuity products included in our Closed Block segment. Our long-term care insurance multi-year in-force rate action plan continues to be our most effective tool in supporting this strategic priority. We achieved an estimated cumulative economic benefit of approximately $34.8 billion, on a net present value basis, of approved rate increases and benefit reductions from 2012 through the second quarter of 2026. As we manage our legacy insurance subsidiaries on a standalone basis, these entities will continue to rely on their statutory capital, significant reserves, prudent management of the in-force blocks and other management actions, including our long-term care insurance in-force rate actions, to satisfy policyholder obligations. For additional information regarding our in-force rate actions, see “—Results of Operations and Selected Financial and Operating Performance Measures by Segment—Closed Block segment.”
Current wording
We continue to actively manage our self-sustaining, customer-centric legacy insurance subsidiaries, comprising long-term care insurance, life insurance and annuity products included in our Closed Block segment. Our long-term care insurance multi-year in-force rate action plan continues to be our most effective tool in supporting this strategic priority. We achieved an estimated cumulative economic benefit of approximately $35.0 billion, on a net present value basis, of approved rate increases and benefit reductions from 2012 through the third quarter of 2026. As we manage our legacy insurance subsidiaries on a standalone basis, these entities will continue to rely on their statutory capital, significant reserves, prudent management of the in-force blocks and other management actions, including our long-term care insurance in-force rate actions, to satisfy policyholder obligations. For additional information regarding our in-force rate actions, see “—Results of Operations and Selected Financial and Operating Performance Measures by Segment—Closed Block segment.”
Previous wording
There were no changes in the financial strength ratings of our principal insurance subsidiaries or the credit ratings of Genworth Financial and Genworth Holdings subsequent to February 27, 2026, the date we filed our 2025 Annual Report on Form 10-K. For additional information regarding the financial strength ratings of Genworth Financial’s insurance subsidiaries and the credit ratings of Genworth Financial and Genworth Holdings, including their importance to our business, see “Item 1—Business—Ratings” in our 2025 Annual Report on Form 10-K.
Current wording
There were no other changes in the financial strength ratings of our principal insurance subsidiaries or the credit ratings of Genworth Financial and Genworth Holdings subsequent to February 27, 2026, the date we filed our 2025 Annual Report on Form 10-K. For additional information regarding the financial strength ratings of Genworth Financial’s insurance subsidiaries and the credit ratings of Genworth Financial and Genworth Holdings, including their importance to our business, see “Item 1—Business—Ratings” in our 2025 Annual Report on Form 10-K.
Previous wording
•Changes in fair value of market risk benefits and associated hedges consist of fair value changes of market risk benefits (other than changes attributable to instrument-specific credit risk), net of changes in the fair value of non-qualified derivative instruments that support our market risk benefits, along with other reserve changes.
Current wording
•Changes in fair value of market risk benefits and associated hedges consist of fair value changes of market risk benefits (other than changes attributable to instrument-specific credit risk), including reserve changes related to policyholder behavior and the effects of interest rates and changes in equity markets, net of changes in the fair value of non-qualified derivative instruments that support our market risk benefits.
Previous wording
(1)Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million for the three months ended June 30, 2025 and $1 million and $2 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
(1)Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $2 million for the three months ended September 30, 2026, and $3 million and $2 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
(2)Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(6) million and $(5) million for the three months ended June 30, 2026 and 2025, respectively, and $(7) million and $(4) million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
(2)Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(4) million and $(2) million for the three months ended September 30, 2026 and 2025, respectively, and $(11) million and $(6) million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
•Net income for thethree months ended June 30, 2026 and 2025 was$47 million and$51 million, respectively, and adjusted operating income, excluding Closed Block was$112 million for both periods.
Current wording
•Net income (loss) for thethree months ended September 30, 2026 and 2025 was$(41) million and$116 million, respectively, and adjusted operating income, excluding Closed Block was$102 million and $113 million, respectively.
Previous wording
•Net income for thesix months ended June 30, 2026 and 2025 was$94 million and$105 million, respectively, and adjusted operating income, excluding Closed Block was$221 million and$226 million, respectively.
Current wording
•Net income for thenine months ended September 30, 2026 and 2025 was$53 million and$221 million, respectively, and adjusted operating income, excluding Closed Block was$323 million and$339 million, respectively.
Previous wording
•For thethree and six months ended June 30, 2026, adjusted operating income, excluding Closed Block reflected strong operating performance in Enact mostly attributable to favorable cure performance, resulting in pre-tax reserve releases of $37 million and $76 million, respectively, partially offset by continued investment in CareScout Services and interest expense on Genworth Holdings’ debt.
Current wording
•For thethree and nine months ended September 30, 2026, adjusted operating income, excluding Closed Block reflected strong operating performance in Enact mostly attributable to favorable cure performance, resulting in pre-tax reserve releases of $37 million and $113 million, respectively, partially offset by continued investment in CareScout Services and interest expense on Genworth Holdings’ debt.
Previous wording
•Mortgage insurance portfolio. New insurance written increased 15% in thesecond quarter of 2026 compared to thesecond quarter of 2025. Enact’s primary persistency rate was 80% and 82%in thesecond quarter of 2026 and 2025, respectively.
Current wording
•Mortgage insurance portfolio. New insurance written of$14.1 billionin thethird quarter of 2026 was relatively consistent with thethird quarter of 2025. Enact’s primary persistency rate was 81% and 83%in thethird quarter of 2026 and 2025, respectively.
Previous wording
•PMIERs compliance. Enact’s PMIERs sufficiency ratio was 161% or $1,894 million above the PMIERs requirements as of June 30, 2026.
Current wording
•PMIERs compliance. Enact’s PMIERs sufficiency ratio was 158%, or $1,827 million above the PMIERs requirements, as of September 30, 2026.
Previous wording
•In-force rate actions. We estimate that the cumulative economic benefit of approved rate increases and benefit reductions in our long-term care insurance multi-year in-force rate action plan from 2012 through thesecond quarter of 2026 was approximately$34.8 billion, on a net present value basis.
Current wording
•In-force rate actions. We estimate that the cumulative economic benefit of approved rate increases and benefit reductions in our long-term care insurance multi-year in-force rate action plan from 2012 through thethird quarter of 2026 was approximately$35.0 billion, on a net present value basis.
Previous wording
•Risk-based capital ratio. As of June 30, 2026, the consolidated risk-based capital ratio on a company action level basis of our legacy insurance subsidiaries was approximately 286%, down from 300% as of December 31, 2025. The decrease was primarily driven by a statutory loss andhigher required capital on long-term care insurance claims in the current year.
Current wording
•Risk-based capital ratio. As of September 30, 2026, the consolidated risk-based capital (“RBC”) ratio on a company action level basis of our legacy insurance subsidiaries was approximately 274%, down from 300% as of December 31, 2025. The decrease was mainly driven by a statutory lossin the current year primarily in our long-term care insurance products.
Previous wording
•Holding company liquidity. Genworth Holdings had$215 million of unrestricted cash and cash equivalents as of June 30, 2026, which included approximately$81 million of cash held for future obligations, including advance cash payments from our subsidiaries.
Current wording
•Holding company liquidity. Genworth Holdings had$320 million of unrestricted cash and cash equivalents as of September 30, 2026, which included approximately$200 million of cash held for future obligations, including advance cash payments from our subsidiaries.
Previous wording
•Capital returns from Enact Holdings. Genworth Holdings received$103 million of capital returns from Enact Holdings during thesecond quarter of 2026.
Current wording
•Capital returns from Enact Holdings. Genworth Holdings received$122 million of capital returns from Enact Holdings during thethird quarter of 2026.
Previous wording
•Share repurchases. Genworth Financial executed$62 million of share repurchases, before excise taxes and other associated costs, during thesecond quarter of 2026.
Current wording
•Share repurchases. On September 2, 2026, Genworth Financial’s Board of Directors authorized an additional $500 million of share repurchases under the existing share repurchase program. Genworth Financial executed$80 million of share repurchases, before excise taxes and other associated costs, during thethird quarter of 2026.
Previous wording
Through the second quarter of 2026, the U.S. economy continued to be subject to significant volatility and uncertainty, largely related to geopolitical tensions, including the Iran conflict, changing economic policies and continued inflationary pressure. The ancillary effects of these factors on the domestic and global economies could materially impact the U.S. housing market and Enact’s business.
Current wording
Through the third quarter of 2026, the U.S. economy continued to be subject to significant volatility and uncertainty, largely related to geopolitical tensions, including the Iran conflict, changing economic policies and continued inflationary pressure. The ancillary effects of these factors on the domestic and global economies could materially impact the U.S. housing market and Enact’s business.
Previous wording
The U.S. Bureau of Labor Statistics reported that the Consumer Price Index inflation was 3.5%year-over-year in June 2026 compared to 3.3% year-over-year in March 2026, while the unemployment rate fell slightly to 4.2% in June 2026 from 4.3% in March 2026.
Current wording
The U.S. Bureau of Labor Statistics reported that the Consumer Price Index inflation was 3.7% year-over-year in September 2026 compared to 3.5% year-over-year in June 2026, while the unemployment rate remained unchanged at 4.2% in September 2026 compared to June 2026.
Previous wording
U.S. mortgage rates remained elevated into thesecond quarter of 2026. Over the past few years, housing affordability has deteriorated as elevated mortgage rates and home price appreciation have outpaced median family income, according to the National Association of Realtors Housing Affordability Index. Despite slowing of home price growth nationally in 2026, according to the Federal Housing Finance Agency (“FHFA”) Monthly Purchase-Only House Price Index (seasonally adjusted), affordability remains challenged.
Current wording
U.S. mortgage rates remained elevated, increasing during thethird quarter of 2026. Over the past few years, housing affordability has deteriorated as elevated mortgage rates and home price appreciation have outpaced median family income, according to the National Association of Realtors Housing Affordability Index. Despite slowing of home price growth nationally in 2026, according to the FHFA Monthly Purchase-Only House Price Index (seasonally adjusted), affordability remains challenged.
Previous wording
In July 2025, the FHFA announced that it would implement the acceptance of VantageScore 4.0 for mortgages delivered to Fannie Mae and Freddie Mac. Enact began accepting VantageScore 4.0 on mortgages during the second quarter of 2026, though volume remains immaterial to date.
Current wording
In July 2025, the FHFA announced that it would implement the acceptance of VantageScore 4.0 for mortgages delivered to Fannie Mae and Freddie Mac. Enact began accepting VantageScore 4.0 on mortgages during the second quarter of 2026. Volume, while increasing, remains immaterial to date.
Previous wording
Enact’s loss ratio for thethree months ended June 30, 2026 and 2025 was 14% and 10%, respectively. Both periods were impacted by favorable reserve development. Enact released reserves of $37 million during thesecond quarter of 2026 primarily driven by favorable cure performance and loss mitigation activities, compared to areserve release of$48 million in the second quarter of 2025.
Current wording
Enact’s loss ratio for thethree months ended September 30, 2026 and 2025 was 20% and 15%, respectively. Both periods were impacted by favorable prior year reserve development. Enact released reserves of $37 million during thethird quarter of 2026 primarily driven by favorable cure performance and loss mitigation activities, compared to areserve release of$45 million in the third quarter of 2025.
Previous wording
New primary delinquencies in the second quarter of 2026 increased compared to the second quarter of 2025 primarily due to the normal loss development pattern on newer books of business. New primary delinquencies of 12,299 contributed $68 million of loss expense in the second quarter of 2026, while Enact incurred $69 million of loss expense from 11,567 new primary delinquencies in the second quarter of 2025. In determining the loss expense estimate, considerations were given to recent cure and claim experience and the prevailing and prospective economic conditions. Loss expense on new delinquencies in the second quarter of 2026 reflected a reduction in expected claim rates made in late 2025 resulting from sustained favorable cure performance and Enact’s market expectations.
Current wording
New primary delinquencies in the third quarter of 2026 increased compared to the third quarter of 2025 primarily due to the expected loss development pattern on newer books of business. New primary delinquencies of 14,401 contributed $83 million of loss expense in the third quarter of 2026, while Enact incurred $79 million of loss expense from 12,998 new primary delinquencies in the third quarter of 2025. In determining the loss expense estimate, considerations were given to recent cure and claim experience and the prevailing and prospective economic conditions. Loss expense on new delinquencies in the third quarter of 2026 reflected a reduction in expected claim rates made in the fourth quarter of 2025 resulting from sustained favorable cure performance and Enact’s market expectations.
Previous wording
As of June 30, 2026, Enact Mortgage Insurance Corporation’s (“EMICO”) estimated risk-to-capital ratio under North Carolina law and enforced by the North Carolina Department of Insurance (“NCDOI”), EMICO’s domestic insurance regulator, was 9.9:1, compared with risk-to-capital ratios of 10.1:1 and 10.3:1 as of December 31, 2025 and June 30, 2025, respectively. EMICO’s risk-to-capital ratio remains below the NCDOI’s maximum risk-to-capital ratio of 25:1. North Carolina’s calculation of risk-to-capital excludes the risk in-force for delinquent loans given the established loss reserves against all delinquencies. EMICO’s ongoing risk-to-capital ratio will depend principally on the magnitude of future losses incurred by EMICO, the effectiveness of ongoing loss mitigation activities, new business volume and profitability, the impact of quota share reinsurance, the amount of policy lapses and the amount of additional capital that is generated or distributed by the business.
Current wording
As of September 30, 2026, EMICO’s estimated risk-to-capital ratio under North Carolina law and enforced by the North Carolina Department of Insurance (“NCDOI”), EMICO’s domestic insurance regulator, was 9.9:1, compared with risk-to-capital ratios of 10.1:1 and 10.2:1 as of December 31, 2025 and September 30, 2025, respectively. EMICO’s risk-to-capital ratio remains below the NCDOI’s maximum risk-to-capital ratio of 25:1. North Carolina’s calculation of risk-to-capital excludes the risk in-force for delinquent loans given the established loss reserves against all delinquencies. EMICO’s ongoing risk-to-capital ratio will depend principally on the magnitude of future losses incurred by EMICO, the effectiveness of ongoing loss mitigation activities, new business volume and profitability, the impact of quota share reinsurance, the amount of policy lapses and the amount of additional capital that is generated or distributed by the business.
Previous wording
Under PMIERs, Enact is subject to operational and financial requirements that private mortgage insurers must meet in order to remain eligible to insure loans that are purchased by the GSEs. As of June 30, 2026, Enact had estimated available assets of $5,002 million against $3,108 million net required assets under PMIERs compared to available assets of $5,016 million against $3,097 million net required assets as of March 31, 2026. The sufficiency ratio as of June 30, 2026 was 161% or $1,894 million above the PMIERs requirements, compared to 162% or $1,919 million as of March 31, 2026. Enact’s PMIERs required assets benefited from a reinsurance credit of $1,931 million and $1,944 million as of June 30, 2026 and March 31, 2026, respectively, related to third-party reinsurance.
Current wording
Under PMIERs, Enact is subject to operational and financial requirements that private mortgage insurers must meet in order to remain eligible to insure loans that are purchased by the GSEs. As of September 30, 2026, Enact had estimated available assets of $4,966 million against $3,139 million net required assets under PMIERs compared to available assets of $5,002 million against $3,108 million net required assets as of June 30, 2026. The sufficiency ratio as of September 30, 2026 was 158%, or $1,827 million above the PMIERs requirements, compared to 161%, or $1,894 million above the PMIERs requirements, as of June 30, 2026. Enact’s PMIERs required assets benefited from a reinsurance credit of $1,969 million and $1,931 million as of September 30, 2026 and June 30, 2026, respectively, related to third-party reinsurance.
Previous wording
On August 21, 2024, the GSEs and the FHFA released updated PMIERs requirements phasing in a revision to the available assets standards between March 31, 2025 and September 30, 2026. The updated standards differentiate between bonds held as available assets under PMIERs based on credit quality and liquidity. The updates also establish limits for assets backed by residential mortgages or commercial real estate to mitigate the impact if such assets lose value during periods of housing stress. Enact expects to hold capital sufficiency well in excess of these requirements and does not expect the impact of these updates to be material to its sufficiency.
Current wording
On August 21, 2024, the GSEs and the FHFA released updated PMIERs requirements phasing in a revision to the available assets standards between March 31, 2025 and September 30, 2026. The updated standards differentiated between bonds held as available assets under PMIERs based on credit quality and liquidity. The updates also established limits for assets backed by residential mortgages or commercial real estate to mitigate the impact if such assets lose value during periods of housing stress. These updates have been fully phased in and the impact has not been material to Enact’s sufficiency.
Previous wording
During the first quarter of 2026, Enact Holdings completed the repurchase of shares under the $350 million share repurchase authorization it had announced on April 30, 2025. On February 3, 2026, Enact Holdings announced the authorization of a new share repurchase program under which it may repurchase up to $500 million of its common stock. Genworth Holdings entered into an agreement with Enact Holdings to participate in the share repurchase program in order to maintain its ownership interest in Enact Holdings. As the majority shareholder, Genworth Holdings received $103 million of capital returns from Enact Holdings during the second quarter of 2026, comprised of $76 million of share repurchases and $27 million of quarterly dividends.
Current wording
During the first quarter of 2026, Enact Holdings completed the repurchase of shares under the $350 million share repurchase authorization it had announced on April 30, 2025. On February 3, 2026, Enact Holdings announced the authorization of a new share repurchase program under which it may repurchase up to $500 million of its common stock. Genworth Holdings entered into an agreement with Enact Holdings to participate in the share repurchase program in order to maintain its ownership interest in Enact Holdings. As the majority shareholder, Genworth Holdings received $122 million of capital returns from Enact Holdings during the third quarter of 2026, comprised of $95 million of share repurchases and $27 million of quarterly dividends.
Previous wording
Adjusted operating income increased primarily due to higher net investment income and lower operating expenses, partially offset by a lower reserve release in the current year.
Current wording
Adjusted operating income decreased primarily due to a lower reserve release and higher new delinquencies, partially offset by higher net investment income in the current year.
Previous wording
Benefits and other changes in policy reserves in both years were impacted by favorable reserve development related to prior years and increased primarily driven by a lower reserve release in the current year. Enact released reserves of $37 million during thesecond quarter of 2026 primarily driven by favorable cure performance and loss mitigation activities, compared to areserve release of$48 million in the second quarter of 2025.
Current wording
Benefits and other changes in policy reserves were impacted by favorable prior year reserve development in both years and increased in the current year primarily due to a lower reserve release and higher new delinquencies. Enact released reserves of $37 million during thethird quarter of 2026 primarily driven by favorable cure performance and loss mitigation activities, compared to areserve release of$45 million in the third quarter of 2025.
Previous wording
Provision (benefit) for income taxes. The effective tax rate was 20.5% and 21.8% for the three months ended June 30, 2026 and 2025, respectively, consistent with the U.S. corporate federal income tax rate.
Current wording
Provision (benefit) for income taxes. The effective tax rate was 21.7% and 22.1% for the three months ended September 30, 2026 and 2025, respectively, consistent with the U.S. corporate federal income tax rate.
Showing the first 40 of 115 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
On September 2, 2026, Genworth Financial’s Board of Directors authorized an additional $500 million of share repurchases under the existing share repurchase program. Since the initial authorization of Genworth Financial’s share repurchase program in May 2022 and through October 31, 2026, we have repurchased over $1.0 billion worth of shares of Genworth Financial’s common stock. For additional information on our share repurchase program, see “—Liquidity and Capital Resources.”
Current report — wording carried from elsewhere
(loss). It is important to note that quarterly variations resulting from assumption updates and actual variances from expected experience are typically expected to be relatively small compared to the overall size of our liability for future policy benefits.
Current report — wording carried from elsewhere
•Our life insurance products increased $6 million largely due to unfavorable overall mortality experience in the current year.
Current report — wording carried from elsewhere
•We recorded $14 million of higher net realized losses related to the sale of available-for-sale fixed maturity securities in the current year.
Current report — wording carried from elsewhere
Federal Home Loan Banks; the issuance of debt and equity securities; the repayment or repurchase of borrowings; the repurchase of common stock presented as treasury stock; and other capital transactions.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
•Our life insurance products increased $7 million principally from higher policy loan rates in our corporate-owned life insurance products in the current year.
Previous report — wording carried elsewhere
Acquisition and operating expenses, net of deferrals
Previous report — wording carried elsewhere
•Our long-term care insurance products increased $6 million primarily driven by higher employee-related expenses in the current year.
Previous report — wording carried elsewhere
•Our life insurance products increased $18 million largely due to lower ceded premiums in the current year, partially offset by the continued runoff of our in-force blocks.
Previous report — wording carried elsewhere
•Our annuity products decreased $12 million primarily due to block runoff and lower annuitizations in the current year as the block ages.
Previous report — wording carried elsewhere
Acquisition and operating expenses, net of deferrals
Previous report — wording carried elsewhere
•During the prior year, we increased the provision for credit losses for commercial mortgage loans by $17 million primarily as a result of updates to the analytical model used to determine the adequacy of the allowance for credit losses. We also increased the allowance for credit losses on available-for-sale fixed maturity securities by $15 million in the prior year.