Genworth Financial taking the offensive after years of LTCi rate struggles

Genworth Financial is no longer on the defensive thanks to its growing CareScout platform and its return to the individual long-term care insurance market after nearly a decade away.

The standalone Care Assurance LTC product launched in October and is live in 40 states, with four more pending approval. It comes with conservative pricing and benefit limits to avoid the steep premium hikes seen in Genworth’s legacy policies.

CEO Tom McInerney and his executive team met with Wall Street analysts Tuesday morning to discuss fourth-quarter and full-year 2025 results. It was a one-sided presentation that generated no questions, extremely unusual for an earnings call.

“CareScout represents our long-term growth strategy and our vision for how agent care should work in the future,” McInerney said. “We are building an innovative, consumer-focused platform that helps people understand and find the quality long-term care they need, while creating a capital-light, scalable, data-driven business for the future.”

While headline profits remain elusive, investors like what Genworth is doing. Company shares rose more than 3% on Tuesday morning.

Beginning with the fourth quarter of 2025, Genworth is breaking out its reportable segments into two main areas: Enact, its private mortgage insurance products; and Closed Block, its long-term care insurance, life insurance and annuity products.

Enact served as the primary profit engine, with $558 million in profit for the year, while the Closed Block segment reported significant operational losses (-$317 million) due to legacy insurance challenges.

Efforts to stabilize the closed blocks of LTCi policies continue, McInerney said. Genworth received $100 million of LTCi premium approvals in the fourth quarter, and $209 million for the full year, he explained, with average premium increases of 35.6% and 38%, respectively.

“We are in the 13th year of a multi-year rate action plan, which has achieved $34.5 billion in net present value since 2012, driven primarily by benefit reductions and premium increases,” McInerney said.

In Other News

Seniorly acquisition. CareScout closed on its acquisition of Seniorly Inc. during the fourth quarter. Seniorly is a leading technology platform and advisor network that connects families with senior living communities and resources. Over the coming months, Seniorly, its advisor network and partners will transition to the CareScout platform, Genworth said in a news release.

The acquisition was funded from Genworth’s existing holding company cash, with total cash consideration amounting to approximately $15 million.

The acquisition of Seniorly “strengthens CareScout’s direct-to-consumer capabilities and accelerates its strategic roadmap to simplify and dignify how families understand, find, and pay for long-term care,” the release said.

“Seniorly’s team has brought deep industry and consumer experience, accelerating our efforts to scale beyond Genworth’s pre-existing policyholder base and add senior living options to our network,” McInerney said.

Quarterly Snapshot

• Closed blocks of LTC, life and annuities lost $114 million in the quarter, up from a $96 million loss in the third quarter and a $99 million loss in the year-ago quarter.
• Home care network includes 1,058 locations across 789 providers, up 60% from the fourth quarter of 2024.
• Closed blocks of life, $13 million, and annuity, $32 million, returned profits based on favorable annual assumption review updates.
• The corporate segment reported a $24 million loss, driven by continued investment in CareScout and debt service, partially offset by favorable tax-related items.

Management Perspective

“CareScout is building a human-centered, tech-enabled platform to simplify and dignify the aging journey. Our approach combines AI and digital technology with a human touch and reflects our deep expertise in delivering high quality, personalized support for long-term care decisions.”

CEO Tom McInerney on Genworth’s use of AI

By The Numbers

• Net Income: $2 million (-$1 million in Q4 2024)
• Adjusted Operating Income: $8 million ($15 million in Q4 2024)
• Earnings Per Share: $0.02 per share ($0.04 per share in Q4 2024)
• Share Repurchases: $94 million in Q4 2025
• Dividend Declared: None
• Stock Price Movement: Shares up about 3% at midday Tuesday

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.