Genworth Revenue Rises as Investment Gains Counter LTC Strain
Net investment income reached $836 million on stronger partnership and inflation-linked returns.
Genworth Financial (GNW), the insurance holding company, reported a 6% increase in second-quarter revenue as stronger investment returns outweighed mounting long-term-care claims. Revenue rose to $1.901 billion from $1.796 billion a year earlier and increased 7% sequentially.
The quarter extended a divergence between Genworth’s investment portfolio and its legacy insurance operations. After-tax net investment income rose to $660 million from $605 million in the first quarter, primarily reflecting higher limited-partnership and Treasury Inflation-Protected Securities income. Investment results swung to a $29 million gain from a $21 million loss sequentially.
Net income held at $47 million, or $0.12 a diluted share, compared with the first quarter and declined from $51 million a year earlier. Adjusted operating income excluding the Closed Block increased 3% sequentially to $112 million and was unchanged from the year-earlier period.
Enact contributed $143 million of adjusted operating income, up from $140 million in the first quarter and $141 million a year earlier. Primary new insurance written jumped 19% sequentially to $15.20 billion, reversing the prior quarter’s seasonal decline, while insurance in force increased 2% from a year earlier to $274.0 billion. The mortgage insurer’s loss ratio improved to 14% from 15% sequentially, though its capital cushion narrowed slightly.
Pressure remained concentrated in the Closed Block, where the adjusted operating loss widened to $110 million from $32 million in the first quarter. A $127 million pretax actual-to-expected loss reflected continued growth in long-term-care claims. The consolidated risk-based capital ratio at Genworth Life Insurance Co. fell to 286% from 289% sequentially and 304% a year earlier, primarily because of those losses and higher required claims capital.
CareScout recorded 1,459 care-provider matches, down 2% sequentially and up 81% from a year earlier, while services revenue held at $6 million. Care Assurance Worksite has received approval in 34 states and is ready for a third-quarter launch, expanding the lineup introduced with its standalone Care Assurance product in October 2025.
Holding-company cash and liquid assets increased to $215 million from $166 million in the first quarter after $103 million of Enact capital returns. Genworth spent $62 million on share repurchases, lifting cumulative buybacks to $918 million and reducing weighted-average diluted shares 7% from a year earlier to 386.3 million.