Genworth Financial Reports $299 Million Net Income for 2024, Significant Growth from 2023

Genworth Financial Inc. reported a net income of $299 million for the year ended December 31, 2024, a significant increase from the $76 million reported in 2023. Adjusted operating income, a key metric used by the company's chief operating decision-maker, also saw substantial growth, rising from $41 million in 2023 to $273 million in 2024. The company attributes these improvements to various factors across its segments, including higher net investment income and premiums in the Enact segment, and lower liability remeasurement losses in the Long-Term Care Insurance segment.

Significant changes compared to the previous year include a decrease in premiums earned across several segments, partially offset by increased net investment income and favorable reserve adjustments. The Enact segment experienced a 4% decrease in new insurance written, but this was counterbalanced by a higher persistency rate, resulting in primary insurance in-force growth of $5.9 billion. In the Long-Term Care Insurance segment, the estimated cumulative economic benefit of approved rate actions since 2012 reached approximately $31.2 billion.

Strategic developments during the year focused on CareScout growth initiatives. CareScout Services expanded its network to all 50 states, adding approximately 500 home care providers. The company plans to invest between $45 million and $50 million in CareScout Services in 2025 and a further $75 million in CareScout Insurance to support the launch of a new individual long-term care insurance product, CareScout Care Assurance, planned for 2025. Genworth also repurchased $565 million worth of its common stock since May 2022.

Key operational developments included a primary insurance in-force of $268.8 billion for the Enact segment as of December 31, 2024, and a primary persistency rate of 83%. The Long-Term Care Insurance segment reported unfavorable variances between actual and expected experience, resulting in a pre-tax impact of $241 million. The company employed approximately 2,960 full-time and part-time employees globally as of December 31, 2024. Several rating agencies updated their ratings for Genworth and its subsidiaries during the year, with some upgrades and affirmations.

Genworth's outlook anticipates continued investment in CareScout, balancing this with shareholder returns and debt reduction. The company acknowledges several risks, including the success of CareScout initiatives, the accuracy of its models and assumptions, economic and market conditions, regulatory changes, and operational risks such as cybersecurity threats. The company also notes the dependence on Enact Holdings' ability to pay dividends to meet its obligations.