Favorable ruling for AXA in the UK Payment Protection Insurance Case; Genworth to share in funds that AXA recovers

Delivered 804 matches1 with providers in the CareScout Quality Network in the quarter with over 90% home care coverage of the aged 65-plus census population in the United States

Launched Care Plans, a fee-based service helping consumers evaluate long-term care needs and find caregivers, growing the CareScout product suite

Repurchased $30M shares in the quarter; $620M since program inception

Continued progress on the LTC2 multi-year rate action plan with $41M of gross incremental premium approvals; approximately $31.6B estimated net present value achieved since 2012 from in-force rate actions (IFAs)

Net income3 of $51M, or $0.12 per diluted share, and adjusted operating income3,4 of $68M, or $0.164 per diluted share

Enact reported adjusted operating income of $141M3; distributed $94M in capital returns to Genworth

U.S. life insurance companies’ RBC5 ratio of 304%6 reflects strong statutory earnings offsetting higher required capital as the limited partnership portfolio grows

Genworth holding company cash and liquid assets of $248M7 at quarter-end

Consolidated Metrics

(Amounts in millions, except per share data)

Net income3

Net income per diluted share3

Adjusted operating income3,4

Adjusted operating income per diluted share3,4

Weighted-average diluted shares

Net income in the quarter was driven by Enact, which had strong operating performance

Net investment losses, net of taxes, decreased net income by $22 million in the current quarter, compared with net investment gains of $21 million in the prior quarter and net investment losses of $48 million in the prior year. The investment losses in the current quarter were driven primarily by derivatives and an increase in the allowance for credit losses, partially offset by mark-to-market adjustments on equity securities and limited partnerships

Changes in the fair value of market risk benefits and associated hedges, net of taxes, increased net income by $8 million in the quarter driven primarily by favorable equity market impacts, compared with a decrease of $14 million in the prior quarter and an increase of $6 million in the prior year

Net investment income, net of taxes, was $634 million in the quarter, up from $584 million in the prior quarter driven by higher income from limited partnerships, and down from $638 million in the prior year from lower income from policy loans offsetting higher income from limited partnerships

GAAP Operating Metrics

(Dollar amounts in millions)

Adjusted operating income3

Primary new insurance written

Loss ratio

Equity8

Current quarter results reflected a pre-tax reserve release of $48 million from favorable cure performance and loss mitigation activities. The prior quarter and prior year included pre-tax reserve releases of $47 million and $77 million, respectively

Net investment income of $66 million in the current quarter was up from $59 million in the prior year from higher yields and higher average invested assets

Primary insurance in-force increased 1% versus the prior year to $269.8 billion driven by new insurance written (NIW) and continued elevated persistency

Primary NIW was up 35% from the prior quarter primarily from seasonality in the purchase origination market and modestly down from the prior year

Capital Metric

PMIERs Sufficiency Ratio6,9

Enact paid a quarterly dividend of $0.21 per share in the current quarter

Estimated PMIERs sufficiency ratio of 165%, $1,961 million above requirements

GAAP Operating Metrics

(Amounts in millions)

Adjusted operating loss

Premiums

Net investment income

Liability remeasurement gains (losses)

Cash flow assumption updates

Actual variances from expected experience

Premiums increased primarily driven by IFAs, partially offset by policy terminations

Net investment income increased due to higher income from limited partnerships

Current quarter liability remeasurement loss included unfavorable actual variances from expected experience primarily from lower terminations and higher benefit utilization, partially offset by a $26 million pre-tax gain from a third-party reinsurance recapture of a block of LTC policies previously assumed by Genworth

Prior quarter liability remeasurement gain included favorable actual variances from expected experience primarily from seasonally high mortality

Prior year included a pre-tax benefit from net insurance recoveries of $24 million and favorable cash flow assumption updates

GAAP Adjusted Operating Income (Loss)

(Amounts in millions)

Life Insurance

Annuities

Total Life and Annuities

Current quarter results reflected mortality experience that was favorable versus the prior quarter but unfavorable versus the prior year

Prior year results reflected the unfavorable impact of a legal settlement accrual

Results in the current quarter included unfavorable mortality and lower net spread income from block runoff compared to prior year

(Dollar amounts in millions)

Statutory pre-tax income (loss)6,11

Long-Term Care Insurance

Life Insurance

Annuities

GLIC Consolidated RBC Ratio5,6

Statutory pre-tax income was $81 million in the current quarter

LTC continued to benefit from premium increases and benefit reductions from IFAs, though lower than the prior year as the Choice II legal settlement is complete. Current quarter results reflected seasonally lower mortality than the prior quarter, partially offset by higher limited partnership distributions and a pre-tax gain of $11 million from a third-party reinsurance recapture. The prior year included a benefit from net insurance recoveries

Life insurance results included favorable seasonal impacts versus the prior quarter

Annuity results reflected a net favorable impact of $79 million pre-tax from equity market and interest rate performance in the variable annuity products compared to $23 million in the prior year and a net unfavorable impact of $26 million in the prior quarter

Current quarter estimated GLIC consolidated RBC ratio was 304%, driven by strong earnings which offset higher required capital as the limited partnership portfolio grows

The current quarter adjusted operating loss was $29 million, up from $10 million in the prior year primarily driven by timing of favorable tax-related items of $15 million in the prior year

(Amounts in millions)

Holding Company Cash and Liquid Assets7,12

Cash and liquid assets were $248 million at the end of the current quarter, including approximately $128 million of advance cash payments from the company’s subsidiaries held for future obligations

Cash inflows during the current quarter included $94 million from Enact capital returns

Current quarter cash outflows included $30 million in share repurchases and $18 million related to debt servicing costs

Executed $30 million in share repurchases in the current quarter at an average price of $7.01 per share; $80 million remaining in the authorization at the end of the second quarter of 2025

Executed $620 million in share repurchases since program inception through June 30, 2025 at an average price of $5.78 per share

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the inability to successfully launch new lines of business, including long-term care insurance and other products and services the company is pursuing with CareScout;

the company’s failure to maintain the self-sustainability of its legacy U.S. life insurance subsidiaries, including as a result of the inability to achieve desired levels of in-force rate 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 the company’s life insurance businesses;

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);

the impact on holding company liquidity caused by an inability to receive dividends or any other returns of capital from Enact Holdings, and limited sources of capital and financing and the need to seek additional capital on unfavorable terms;

adverse changes to the structure or requirements of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or the U.S. mortgage insurance market; an increase in the number of loans insured through federal government mortgage insurance programs, including those offered by the Federal Housing Administration; the inability of Enact Holdings and/or its U.S. mortgage insurance subsidiaries to continue to meet the requirements mandated by PMIERs (or any adverse changes thereto), the inability to meet minimum statutory capital requirements of applicable regulators or the mortgage insurer eligibility requirements of Fannie Mae or Freddie Mac;

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; an increase in the cost of care impacting the company’s long-term care insurance business; 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, including U.S. federal tax laws, such as the One Big Beautiful Bill Act that was signed into law on July 4, 2025, tax rates or interest rates; changes within regulatory agencies as a result of the change in the U.S. Administration in January 2025; changes in immigration policy; and fluctuations in international securities markets;

downgrades in financial strength and credit ratings and potential adverse impacts to liquidity; counterparty credit risks; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of invested assets;

changes in tax rates or tax laws, or changes in accounting and reporting standards;

litigation and regulatory investigations or other actions, including commercial and contractual disputes with counterparties;

the inability to retain, attract and motivate qualified employees or senior management;

changes in the composition of Enact Holdings’ business or undue concentration by customer or geographic region;

the impact from deficiencies in the company’s disclosure controls and procedures or internal control over financial reporting;

the occurrence of natural or man-made disasters, including geopolitical tensions and war (including the Russian invasion of Ukraine, the Israel-Hamas conflict and economic competition between the United States and China), a public health emergency, including pandemics, or climate change;

the inability to effectively manage information technology systems (including artificial intelligence), cyber incidents or other failures, disruptions or security breaches of the company or its third-party vendors, as well as unknown risks and uncertainties associated with artificial intelligence;

the inability of third-party vendors to meet their obligations to the company;

the lack of availability, affordability or adequacy of reinsurance to protect the company against losses;

a decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations;

unanticipated claims against Enact Holdings’ delegated underwriting and loss mitigation programs;

the impact of medical advances such as genetic research and diagnostic imaging, emerging new technology, including artificial intelligence and related legislation; and

other factors described in the risk factors contained in Item 1A of the company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 28, 2025.

Revenues:

Premiums

Net investment income

Net investment gains (losses)

Policy fees and other income

Total revenues

Benefits and expenses:

Benefits and other changes in policy reserves

Liability remeasurement (gains) losses

Changes in fair value of market risk benefits and associated hedges

Interest credited

Acquisition and operating expenses, net of deferrals

Amortization of deferred acquisition costs and intangibles

Interest expense

Total benefits and expenses

Income from continuing operations before income taxes

Provision for income taxes

Income from continuing operations

Loss from discontinued operations, net of taxes

Net income

Less: net income attributable to noncontrolling interests

Net income available to Genworth Financial, Inc.’s common stockholders

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Net income available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted

Net income available to Genworth Financial, Inc.’s common stockholders

Add: net income attributable to noncontrolling interests

Net income

Less: loss from discontinued operations, net of taxes

Income from continuing operations

Less: net income from continuing operations attributable to noncontrolling interests

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders

Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:

Net investment (gains) losses, net13

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges14

(Gains) losses on early extinguishment of debt, net15

Expenses related to restructuring

Taxes on adjustments

Adjusted operating income

Adjusted operating income (loss):

Enact segment

Long-Term Care Insurance segment

Life and Annuities segment:

Life Insurance

Fixed Annuities

Variable Annuities

Total Life and Annuities segment

Corporate and Other

Adjusted operating income

Net income available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Adjusted operating income per share:

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted

A match is identified when CareScout validates and approves an invoice from a CareScout Quality Network provider that demonstrates a CareScout member has received services for the first time, and the appropriate discount was applied.

Long-term care insurance.

All references reflect amounts available to Genworth’s common stockholders.

This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (GAAP). See the Use of Non-GAAP Measures section of this press release for additional information.

Risk-based capital ratio based on company action level for Genworth Life Insurance Company (GLIC) consolidated.

Company estimate for the second quarter of 2025 due to timing of the preparation and filing of the statutory financial statement(s).

Includes approximately $128 million, $98 million and $95 million of advance cash payments from the company’s subsidiaries held for future obligations as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

Reflects Genworth’s ownership of equity including accumulated other comprehensive income (loss) and excluding noncontrolling interests of $991 million, $971 million and $894 million as of June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

The Private Mortgage Insurer Eligibility Requirements (PMIERs) sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs.

Genworth’s principal U.S. life insurance companies: GLIC, Genworth Life and Annuity Insurance Company (GLAIC) and Genworth Life Insurance Company of New York (GLICNY).

Net gain (loss) from operations before dividends to policyholders, refunds to members and federal income taxes for GLIC, GLAIC and GLICNY, and before realized capital gains or (losses).

Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc.

Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million for all periods presented.

Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(5) million and $(2) million for the three months ended June 30, 2025 and 2024, respectively, and $1 million for the three months ended March 31, 2025.

(Gains) losses on early extinguishment of debt were net of the portion attributable to noncontrolling interests of $2 million for the three months ended June 30, 2024.