Genworth Financial has announced its financial results for the third quarter of 2025, with net income driven by the performance of its Enact segment.
Net investment income, net of taxes, totaled $631 million for the quarter, slightly lower than the previous quarter’s $634 million but higher than the $614 million reported in the same period last year. The increase over the prior year was attributed to higher income from limited partnerships.
Net investment gains, net of taxes, contributed $78 million to net income, compared to net investment losses of $22 million in the previous quarter and gains of $52 million in the prior year. Genworth also recorded a $34 million tax benefit related to the release of a portion of the valuation allowance on certain deferred tax assets.
Enact, Genworth’s mortgage insurance business, reported a pre-tax reserve release of $45 million, reflecting favorable cure performance. The prior quarter and prior year included pre-tax reserve releases of $48 million and $65 million, respectively.
Net investment income for Enact was $68 million, up from $62 million in the prior year, supported by higher yields and increased invested assets.
Genworth’s recent financial performance has also been shaped by developments in the second quarter. The company reported net income of $51 million and adjusted operating income of $68 million for the period. In addition, Genworth executed $30 million in share repurchases during the second quarter, bringing the total to $620 million since the program’s inception.
President and CEO Tom McInerney (pictured above) said, “I’m proud of the significant progress we’ve made advancing Genworth’s strategic priorities.” He noted the launch of CareScout’s inaugural stand-alone long term care insurance product and the acquisition of Seniorly, as well as the board’s authorization of a new $350 million share repurchase program.
Primary insurance in-force for Enact increased 2% year-over-year to $272.3 billion, driven by new insurance written and continued elevated persistency. Primary new insurance written rose 6% from the previous quarter, reflecting seasonal trends, and was up 3% from the prior year.
Enact entered a quota share reinsurance agreement and, in October, announced an excess of loss reinsurance agreement, both covering the 2027 book year. The segment also closed a new $435 million revolving credit facility and paid a quarterly dividend of $0.21 per share. The estimated PMIERs sufficiency ratio stood at 162%, or $1.9 billion above requirements.
In the long-term care insurance segment, premiums increased, primarily due to in-force rate actions, partially offset by policy terminations. Net investment income rose compared to the prior year but declined from the previous quarter, reflecting changes in limited partnership income. The liability remeasurement loss in all periods included unfavorable actual variances from expected experience, mainly from lower terminations and higher benefit utilization.
For the corporate and other segment, the current quarter adjusted operating loss was $21 million, down from $29 million in the prior quarter and $27 million in the prior year. This change was primarily driven by a $7 million tax benefit related to the release of a portion of the valuation allowance on certain deferred tax assets.
“Supported by Enact’s strong cash flows, we remain focused on delivering value to our shareholders and to the millions of families we serve,” McInerney said.
