Earnings

Despite LTC loss, Genworth sees net income growth, CareScout expansion

By Doug Bailey

Genworth Financial reported results for Q4 and full-year 2024, with net income reaching $299 million, driven by disciplined cost management, strong investment performance, and continued success in long-term care rate actions. The company also repurchased $51 million in shares in Q4, bringing total 2024 buybacks to $186 million at an average price of $6.52 per share.

CEO Tom McInerney highlighted Genworth’s strategic focus on capital returns, strengthening financial flexibility, and expanding CareScout’s Quality Network as key priorities for the year.
‘We continue to execute on our strategy to maximize shareholder value while investing in businesses that align with our long-term growth objectives,” he said.

McInerney highlighted significant milestones for 2024, including the 12th year of the Multi-Year Rate Action Plan (MYRAP), which has achieved 87% of its total projected value, contributing $31.2 billion in net present value to the legacy LTC business since 2012.

CareScout Quality Network, launched earlier in 2024, now covers 86% of the U.S. population aged 65 and older, with nearly 500 providers in all 50 states. This initiative is expected to drive $1 billion to $1.5 billion in LTC claim savings over time. The company plans to invest $75 million in CareScout Insurance in 2025 to support the launch of its first new LTC insurance product, designed with mid-teen return targets and access to the CareScout Quality Network.

Fourth quarter adjusted operating income was $15 million, led by Enact's performance, which contributed $137 million.

Progress on LTC rate actions

• Genworth secured $40 million in gross incremental premium approvals in Q4 for its LTC multi-year rate action plan.

• The estimated net present value of in-force rate actions reached $31.2 billion since 2012, bolstering future financial stability.

Quarterly Snapshot

Net Income: $299 million ($0.68 per diluted share)
Adjusted Operating Income: $273 million ($0.62 per diluted share)
Q4 Share Repurchases: $51 million (Total 2024: $186 million)
Enact Holdings Adjusted Operating Income: $137 million
U.S. Life Insurance Risk-Based Capital Ratio: 306%
Holding Company Liquidity: $294 million

Management Perspective

CEO Tom McInerney emphasized Genworth’s strong financial discipline and shareholder-focused strategies, including capital returns and a measured approach to long-term care cost adjustments.

“We remain committed to optimizing our balance sheet, returning capital to shareholders, and growing our businesses with strategic investments in areas like CareScout,” McInerney said. “With a strong capital position, we are well-positioned for long-term success.”
McInerney said the company’s liquidity position remains strong.

“We ended the fourth quarter with holding company cash and liquid assets of $294 million, which includes approximately $186 million in cash set aside for future obligations,” he said. “In the fourth quarter, we made considerable progress against our…strategic priorities.”
CFO Jerome Upton reinforced that Genworth’s financial strength allows for continued share repurchases and long-term investments.

By The Numbers

Total Revenue: $1.78 billion (-6.8% Y/Y)
Net Income (loss): $299 million 2024, $1 million loss 4Q
Earnings Per Share (EPS): $0.68 (diluted)
Share Repurchases: $51 million in Q4, $186 million total in 2024
Stock Price Movement: $6.76 per share, down 7.6% in mid-day trading Wednesday, down 3% YTD.

Life Picture

Adjusted Earnings: The U.S. Life Insurance segment reported an adjusted operating quarterly loss of $104 million, impacted by assumption updates and liability remeasurement losses.

For 2024: $2 million 4Q

Annuity Picture
Adjusted Earnings: $3 m, 4Q, $56m

LTC Picture

Operating loss: $104 million

Looking Ahead

With strong capital reserves, continued LTC rate adjustments, and expansion of CareScout, Genworth is well-positioned for sustained growth and further shareholder returns in 2025. The company will evaluate additional capital deployment strategies while maintaining a disciplined approach to financial and risk management.

While Enact continues to deliver strong results and capital returns, challenges persist in the U.S. Life Insurance segment. The company remains optimistic about scaling CareScout and launching new insurance products to capture demand in the aging care market.

Correction: An earlier version of the article mistakenly named Dan Sheehan as CFO, rather than current CFO Jerome Upton.