Genworth 4Q21 Earning Summary Presentation - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
February 2, 2022 Newswires
Share
Share
Post
Email

Genworth 4Q21 Earning Summary Presentation

U.S. Regulated Equity Markets (Alternative Disclosure) via PUBT

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 Genworth Financial, Inc. All rights reserved.

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 Genworth's Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission (SEC) on February 26, 2021. Genworth undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. For information regarding forward-looking statements, see the Appendix.

Non-GAAP1 and Other Items

All financial results are as of December 31, 2021 unless otherwise noted. For additional information, please see Genworth's fourth quarter 2021 earnings release and financial supplement posted at genworth.com.

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 Genworth's common stockholders, net income (loss) available to Genworth's common stockholders per diluted share, adjusted operating income (loss) available to Genworth's common stockholders and adjusted operating income (loss) available to Genworth's common stockholders per diluted share, respectively.

Statutory Accounting Data

In this presentation, the company presents certain supplemental statutory data for Genworth Life Insurance Company (GLIC) and its consolidating life insurance subsidiaries that has been prepared on the basis of statutory accounting principles (SAP). GLIC and its consolidating life insurance subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners that are prepared using SAP, an accounting basis either prescribed or permitted by such authorities. Due to differences in methodology between SAP and U.S. GAAP, the values for assets, liabilities and equity reflected in financial statements prepared in accordance with U.S. GAAP are materially different from those reflected in financial statements prepared under SAP. This supplemental statutory data should not be viewed as an alternative to U.S. GAAP or used in lieu of U.S. GAAP.

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 U.S. life insurance businesses with internally generated capital and long term care insurance in-force rate actions with the goal of managing the legacy long term care insurance business on a break-even basis.

1 U.S. Generally Accepted Accounting Principles

Genworth 4Q21 Earnings Presentation - February 2, 2022

1

Key Themes for the 4th Quarter of 2021

Financial Performance

Genworth fourth quarter net income of $163mm, or $0.32 per diluted share, and adjusted operating income1 of $164mm, or $0.32 per diluted share

2021 full year net income of $904mm, or $1.76 per diluted share, and adjusted operating income of $765mm, or $1.48 per diluted share

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 $2.0b above published requirements

U.S. Life Insurance segment adjusted operating income of $41mm driven by long term care insurance (LTC) results benefitting from in force rate actions and higher net investment income

Annual U.S. GAAP assumption review completed for U.S. Life Insurance segment:

  • 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

Strong U.S. Life Insurance companies' statutory income driving estimated year-end RBC to 290% Received $163mm dividend payment from Enact

Significant holding company debt retirement in the fourth quarter of 2021 and approximately $2.1b principal retired in the year

Genworth holding company cash and liquid assets of $356mm at year-end

1 Non-GAAP measure, see appendix for additional information; 2 Reflects Genworth ownership percentage; 3 Private mortgage insurer eligibility requirements

Genworth 4Q21 Earnings Presentation - February 2, 2022

2

Go-Forward Strategic Priorities & 4Q21 Highlights

Reduce holding

Maximize value of Enact

Retucapital to

company debt to ~$1b

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 August 2023 ($400mm principal) and reduction of the February 2024 senior notes by $118mm principal. As of December 31, 2021, Genworth had approximately $1.2b of parent holding company long-term debt outstanding and $356mm in cash and liquid assets.

Continued progress against LTC multi-year rate action plan, with an estimated $19.6b net present value from achieved LTC rate actions since 2012.

Shareholder retuprogram will be evaluated once the company reaches its holding company debt target of $1.0b and Enact initiates its regular common dividend.

Genworth 4Q21 Earnings Presentation - February 2, 2022

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

U.S. Life Insurance: $267mm

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

U.S. Life

Runoff

Corp/Other

Net Income

Net Income

904

178

1 Reflects Genworth ownership percentage, $553mm at 100% less $33mm minority interest; 2 Results re-presented for Genworth Mortgage Insurance Australia Limited sale completed March 2021

Genworth 4Q21 Earnings Presentation - February 2, 2022

4

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Genworth Financial Inc. published this content on 02 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2022 13:01:11 UTC.

Older

Kevin Rabinowitz Joins Relation As Chief Broking Officer

Newer

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 News

Annuity 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 News

Health/Employee Benefits News

  • Blue Cross faces Michigan lawsuit over alleged monopoly and pricing practices
  • SMH, UnitedHealthcare wrangle over coverage
  • Millions lose private Medicare plans and face rising costs
  • State announces rates for 2027 small group health insurance market
  • Rethinking the status quo can lead to long-term savings on healthcare
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Corebridge Financial Introduces Progressive Trigger, a First-of-Its-Kind Index Annuity Strategy Designed to Turn Missed Years into Future Opportunity
  • BILTIR conference draws more than 750 insurance leaders to Bermuda
  • Death and taxes: How the right analysis for life insurance changes the picture
  • Life insurance applications rise 15.2% in September, MIB reports
  • Flourish brings private-bank-like cash solution to MassMutual’s network
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.