Genworth Financial, Inc. reported fourth‑quarter 2025 earnings that fell short of expectations, with earnings per share of $0.02 versus the consensus estimate of $0.11. Net income for the quarter was $2 million, and adjusted operating income stood at $8 million, a decline from the $15 million reported in the same period a year earlier. The company’s full‑year 2025 net income was $223 million and adjusted operating income was $144 million.
Enact, Genworth’s mortgage‑insurance subsidiary, delivered a robust performance, generating adjusted operating income of $146 million in Q4 and $558 million for the full year. In contrast, the Closed Block segment, which includes long‑term care (LTC), posted an adjusted operating loss of $114 million in Q4 and a $159 million loss from LTC alone. The segment’s full‑year loss was $317 million, driven by higher claims and unfavorable assumption updates in the LTC business.
Management outlined guidance for 2026, noting that Enact is expected to generate approximately $405 million in cash, and the company plans to allocate $175 million to $225 million for share repurchases. CareScout, the company’s consumer‑facing care‑planning platform, is targeting at least $25 million in service‑business revenue for 2026, with a nationwide expansion of its Quality Network and the launch of new care‑plan offerings.
"Genworth delivered strong results in 2025 as we continued to execute against our strategic priorities. We took major steps to advance CareScout's strategy, with nationwide expansion of the CareScout Quality Network, the launch of Care Plans, our new innovative consumer‑facing solution, along with the launch and continued buildout of our CareScout insurance offerings," said Tom McInerney, President & CEO. "CareScout is building a human‑centered, tech‑enabled platform to simplify and dignify the aging journey. Our approach combines AI and digital technology with a human touch and reflects our deep expertise in delivering high quality, personalized support for long‑term care decisions." "Our approximately 81% ownership stake in Enact remains a key source of cash to Genworth with $407 million received in 2025, fueling our share repurchases and investments in CareScout," McInerney added.
The market reacted positively, with Genworth’s stock rising 3.55% in pre‑market trading on February 24. Investors focused on the company’s strong cash generation from Enact, the strategic expansion of CareScout, and the perceived undervaluation of the stock, which trades at a price‑to‑book ratio of 0.38.
The earnings miss was largely attributable to the significant losses in the Closed Block segment, especially the $159 million loss from LTC. While Enact’s performance helped offset the impact, the company’s overall margin compression—from 4.2% a year earlier to 3% in 2025—signals ongoing headwinds in its legacy insurance operations. The guidance indicates confidence in Enact’s cash flow and a continued focus on scaling CareScout, suggesting a strategic pivot toward a housing‑and‑aging‑solutions model while managing legacy liabilities.
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