Genworth Swings to a Loss as Closed Block Widens

The Tip Desk · November 11, 2026 · 3 min read

The holding company reported a $41 million net loss, or $0.11 a share, as Closed Block adjusted operating loss reached $146 million.

Genworth Financial (GNW), a Richmond-based holding company that owns a majority of mortgage insurer Enact, reported a net loss of $41 million, or $0.11 a share, for the quarter ended September 30, 2026, reversing net income of $47 million, or $0.12 a share, in the prior quarter.

The company said the GAAP loss was driven by Closed Block, partially offset by Enact. Adjusted operating income excluding Closed Block was $102 million, or $0.27 a share.

Closed Block’s adjusted operating loss widened to $146 million from $110 million in the second quarter. The company said the current-quarter result was primarily driven by a $111 million pre-tax actual-versus-expected loss from lower terminations, primarily from mortality, and higher benefit utilization in long-term care, plus lower net investment income. Prior-quarter and prior-year results had reflected pre-tax A/E losses of $127 million and $100 million, respectively.

Statutory pre-tax results swung to a $143 million loss from $6 million of income in the prior quarter. Long-term care statutory pre-tax loss was $151 million, versus $82 million in the second quarter. Life insurance statutory pre-tax loss was $31 million. Annuities posted a $39 million statutory pre-tax profit. The company said mortality was favorable to the prior quarter but unfavorable to the prior year, and that claims continued to grow as the block ages. GLIC consolidated RBC ratio was estimated at 274%, down from 286%, which the company attributed to the statutory loss, primarily in LTC.

Enact reported adjusted operating income of $132 million, down from $143 million in the prior quarter. Primary new insurance written decreased 7% versus the prior quarter to $14.11 billion from $15.20 billion, which the company attributed to higher mortgage rates. Primary insurance in-force was $275.1 billion. The loss ratio rose to 20% from 14%, which the company said was driven by a normal seasonal increase in new delinquencies versus the prior quarter and a lower reserve release versus the prior year. The quarter included a $37 million pre-tax reserve release; the prior year included a $45 million release. Pre-tax net investment income was $74 million. The estimated PMIERs sufficiency ratio was 158%, $1.827 billion above requirements. Enact entered into a quota share reinsurance agreement covering the 2028 book year and paid a quarterly dividend of $0.24 a share.

Consolidated net investment income, net of taxes, was $603 million, down from $660 million in the prior quarter, primarily from lower income from limited partnerships and U.S. Government TIPS. Net investment results flipped to a $9 million net-of-tax loss from $29 million of net-of-tax gains, driven primarily by net trading losses and derivatives. Total revenues were $1.794 billion.

Corporate and Other adjusted operating loss was $30 million, versus $31 million in the prior quarter, primarily from continued investment in CareScout and debt service. CareScout delivered 1,532 matches, versus 1,459 in the second quarter. Care Assurance Worksite launched in the quarter and was approved in 40 states as of September 30, 2026, versus 34 states as of June 30. CareScout Services revenues were $7 million.

Holding company cash and liquid assets rose to $320 million from $215 million at the end of the prior quarter, including approximately $200 million held for future obligations. Cash inflows included $122 million from Enact capital returns. Outflows included $80 million in share repurchases at an average price of $10.05 a share, the repurchase of $21 million in principal of holding company debt at a discount, and $6 million related to debt servicing costs. Since program inception through September 30, 2026, the company had repurchased $998 million of shares at an average price of $6.66 a share. It announced a new $500 million share repurchase authorization.