Genworth Financial (NYSE:GNW) reported second-quarter net income of $47 million, or $0.12 per share, while adjusted operating income excluding its closed block business totaled $112 million, or $0.29 per share. The company’s results were led by mortgage insurance subsidiary Enact, while losses in the closed block and continued investment in CareScout weighed on overall performance.
Jerome Upton, Genworth’s interim president and chief executive officer and chief financial officer, said the company continues to focus on three priorities: generating shareholder value through Enact, building its CareScout aging-care platform, and managing the self-sustainability of its closed block of long-term care, life insurance and annuity products.
Enact Drives Operating Results and Capital Returns
Enact contributed $143 million of adjusted operating income to Genworth in the quarter. Its results included a $37 million pre-tax reserve release, reflecting what Upton described as continued strong performance and loss mitigation activity. Enact’s loss ratio was 14% for the quarter.
New insurance written at Enact was $15 billion, increasing from the prior-year period due to a larger estimated market size. Primary insurance in force grew 2% year over year to $274 billion, supported by new insurance written and elevated policy persistency. Earned premiums were $245 million, up sequentially and in line with the prior-year quarter.
Enact’s estimated PMIER sufficiency ratio stood at 161%, or about $1.9 billion above requirements, at the end of the second quarter. Genworth’s share of Enact’s book value, including accumulated other comprehensive income, rose to $4.4 billion from $4.3 billion at the end of the first quarter.
Enact returned $103 million of capital to Genworth during the quarter. Following Enact’s earnings release, Genworth increased its estimate for full-year capital returns from Enact to between $445 million and $485 million, based on Genworth’s approximately 81% ownership position. Enact expects to return roughly $550 million to $600 million to shareholders during 2026.
Buybacks, Debt Reduction and Holding Company Liquidity
Genworth repurchased $62 million of shares during the second quarter at an average price of $8.74 per share, followed by another $4 million of repurchases in July. Since its buyback authorization began in May 2022, the company has repurchased approximately $922 million of stock at an average price of $6.48 per share through July 31.
The company increased its 2026 share repurchase outlook to a range of $225 million to $250 million. Upton said the amount ultimately deployed could vary based on market conditions, business performance, holding company cash and Genworth’s share price.
Genworth also retired $10 million of principal debt at a discount during the quarter, leaving holding company debt at $768 million. The company ended the quarter with $215 million of cash and liquid assets. For capital-allocation purposes, it excluded about $81 million of cash held for future obligations, including advance cash payments from subsidiaries.
Upton said Genworth’s capital-allocation priorities remain investing in CareScout growth, repurchasing shares when they trade below intrinsic value, and opportunistically reducing debt.
CareScout Expands Network and Worksite Insurance Offering
CareScout Services continued expanding its aging-care provider network, which included more than 1,100 home-care locations as of the end of the second quarter. Genworth began adding senior living communities to the network in the first quarter and is targeting at least 2,000 senior living communities by year-end.
The company doubled the number of local advisers during the year to date, with advisers represented in 26 states at quarter-end. These advisers help families evaluate senior living options, while CareScout’s nurse network provides clinical expertise.
CareScout facilitated approximately 1,450 matches between care seekers and providers in the second quarter, bringing first-half matches to approximately 2,950—more than double the total from the first half of 2025. However, Upton said current match volumes are pacing below the level required to achieve the company’s full-year target of approximately 7,500 matches, compared with 3,255 in 2025.
CareScout Services generated $6 million of revenue in the second quarter and $12 million in the first half. Genworth maintained its full-year revenue expectation of $25 million and projected 2026 investment in the business of approximately $50 million to $55 million.
Meanwhile, CareScout Insurance’s Care Assurance worksite product was approved for a planned third-quarter launch in at least 34 states. The employer-distributed product combines long-term care cost protection with access to CareScout care-planning, navigation, caregiver-support and provider-network services. Genworth said it does not anticipate additional capital investment in CareScout Insurance during 2026 after making an initial $85 million investment in 2025.
Closed Block Results and Rate Actions
Genworth’s closed block segment reported an adjusted operating loss of $110 million, driven by a $127 million pre-tax liability remeasurement loss tied primarily to long-term care actual-versus-expected experience.
Upton said first-half actual-versus-expected loss experience trended above the level implied by Genworth’s full-year expectation of about $300 million. If the trend continues, full-year losses could exceed that amount. He said these GAAP fluctuations do not affect the company’s cash flows, economic value or approach to managing the business.
The company secured $46 million of gross incremental premium approvals in the second quarter, compared with $41 million a year earlier, and received an additional $27 million of approvals in July. Genworth expects 2026 premium approvals and benefit reductions to be broadly in line with 2025 levels, contributing about $1 billion of value on a net-present-value basis.
Since 2012, Genworth has achieved approximately $34.8 billion of benefit reductions and premium increases on a net-present-value basis. About 62% of policyholders offered a benefit reduction have chosen that option, according to the company.
Genworth said it will continue to manage the closed block as a closed system using existing reserves and capital to cover future claims. The company does not expect to inject capital into the closed-block companies or receive capital returns from them.
AXA Litigation Remains Uncertain
Genworth said an appeal hearing related to its AXA litigation took place in July. The company expects the Court of Appeal to issue a decision about three to six months after the hearing.
If the judgment is upheld and all appeals are resolved favorably, Genworth expects to recover approximately $750 million, subject to exchange rates at the time. The company said it does not expect to owe taxes on any recovery.
Greg Karawan, Genworth’s general counsel, said the company was pleased with how the hearing proceeded but emphasized that litigation is inherently uncertain. Upton said any potential recovery is not incorporated into current capital-allocation plans. If received, proceeds would be allocated according to existing priorities, including CareScout investment, shareholder returns and debt reduction.
About Genworth Financial (NYSE:GNW)
Genworth Financial (NYSE: GNW) is a leading financial security company offering a broad range of insurance products. Based in Richmond, Virginia, Genworth provides individuals and families with solutions designed to protect against long-term care expenses, secure life insurance needs and support homeownership through private mortgage insurance. With operations spanning the United States, Canada and Australia, the company serves both retail and institutional clients through a diversified portfolio of risk management services.
The company’s Private Mortgage Insurance (PMI) segment offers coverage to lenders and consumers in the US, Canada and Australia, enabling homebuyers to purchase properties with lower down payments.
