Genworth 4Q21 Earning Summary Presentation
Fourth Quarter 2021
EarningsSummary
February2, 2022
NOTICE: This document contains confidential, non-public company information. Further distribution of this document is strictly prohibited.
Company Confidential ©2022
Cautionary Note Regarding Forward-Looking Statements
This presentation contains certain "forward-looking statements" within the meaning of the United States 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" or words of similar meaning and include, but are not limited to, statements regarding the outlook for future business and financial performance. Examples of forward-looking statements include statements the company makes relating to future reductions of debt, potential dividends or share repurchases, and future strategic investments, including new products and services designed to assist individuals with navigating and financing long term care, as well as statements the company makes regarding the potential impacts of the COVID-19 pandemic. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, business, competitive, market, regulatory and other factors and risks, including those discussed at the end of this presentation, as well as in the risk factor section of
Non-GAAP1 and Other Items
All financial results are as of
For important information regarding the use of non-GAAP and selected operating performance measures, see the Appendix.
Unless otherwise noted, all references in this presentation to net income (loss), net income (loss) per share, adjusted operating income (loss) and adjusted operating income (loss) per share should be read as net income (loss) available to
Statutory Accounting Data
In this presentation, the company presents certain supplemental statutory data for
This supplemental statutory data includes risk-based capital ratios for GLIC and its consolidating life insurance subsidiaries as well as statutory pre-tax earnings of its long term care insurance business and the impact of its in force rate actions. Management uses and provides this supplemental statutory data because it believes it provides a useful measure of among other things the adequacy of capital and the progress and impact of its multi-year rate action plan. Management uses this data to measure against its policy to manage the
1
|
|
1 |
Key Themes for the 4th Quarter of 2021
Financial Performance
2021 full year net income of $904mm, or
Enact segment adjusted operating income of $125mm2, with 9% annual growth in primary insurance in force and a loss ratio of 3%
Enact's PMIERs3 sufficiency ratio estimated at 165%, approximately
Annual
- LTC
U.S. GAAP active life margins remained positive in the prior year range of$0.5 to$1.0b - Net unfavorable impact of $70mm after-tax in life insurance
Significant holding company debt retirement in the fourth quarter of 2021 and approximately
1 Non-GAAP measure, see appendix for additional information; 2 Reflects
|
|
2 |
Go-Forward Strategic Priorities & 4Q21 Highlights
|
Reduce holding |
Maximize value of Enact |
Retucapital to |
|
company debt to |
shareholders |
|
|
Achieve economic |
Advance LTC growth |
|
breakeven/stabilize legacy |
|
|
initiatives |
|
|
LTC block |
|
Fourth Quarter of 2021 Strategic Highlights
Reduced holding company debt by $518mm in the fourth quarter, including full retirement of the senior notes due in
Continued progress against LTC multi-year rate action plan, with an estimated
Shareholder retuprogram will be evaluated once the company reaches its holding company debt target of
|
|
3 |
2021 Results Summary - Genworth Consolidated
Adjusted Operating Income (Loss) ($mm)
Enact: $520mm1
Favorable performance versus prior year driven by improved loss performance
Primary insurance in force increased 9% versus the prior year from strong new insurance written (NIW)
|
2021 |
20202 |
|
765 |
310 |
LTC benefit from in force rate actions, including policyholder elections related to a legal settlement and higher variable investment income
Life results include unfavorable charges related to assumption updates and deferred acquisition costs (DAC) recoverability testing in the current year versus favorable charges related to assumption updates in the prior year
Higher life mortality attributable in part to COVID-19 pandemic; prior year included larger unfavorable impacts associated with term and term universal life insurance products entering the post- level period
520
|
LTC |
381 |
|||
|
445 |
||||
|
267 |
Fixed Annuities |
91 |
||
|
Life |
(269) |
LTC |
237 |
|
|
68 |
Fixed Annuities |
78 |
||
|
54 |
43 |
Life |
(247) |
|
|
(76) |
(182) |
|||
Runoff: $54mm
Variable annuity results driven by favorable equity market performance and interest rate performance
Corporate & Other: $(76)mm
Lower interest expense and lower corporate expenses
|
Enact |
|
Runoff |
Corp/Other |
||||||
|
Net Income |
Net Income |
||||||||
|
904 |
178 |
||||||||
1 Reflects
|
|
4 |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
Disclaimer


Kevin Rabinowitz Joins Relation As Chief Broking Officer
Enact 4Q21 Earnings Summary
Advisor News
- Flourish brings private-bank-like cash solution to MassMutual’s network
- Majority of Americans concerned recent market highs are unsustainable
- GLP-1 users choose between medication and retirement saving
- Gen X and millennials seek new retirement model
- Are families ready for the costs of aging at home?
More Advisor NewsAnnuity News
- Corebridge Financial Introduces Progressive Trigger, a First-of-Its-Kind Index Annuity Strategy Designed to Turn Missed Years into Future Opportunity
- Insurer proposes $1.1M deal to resolve CA teachers’ annuity fee lawsuit
- IMOs get frustrated with slow carrier adoption of faster technology
- New class-action lawsuit targets Delaware Life over annuity disclosures
- A client remarried: Does their annuity still fit?
More Annuity NewsHealth/Employee Benefits News
Life Insurance News