Genworth's Third-Quarter Loss of $41 Million Reflects a Deeper Long-Term Care Statutory Loss, While Enact Earns $132 Million and the Company Authorises a New $500 Million Buyback

Genworth Financial, Inc. released its third-quarter 2026 results on November 4, 2026, with a conference call on November 5. The company reported a net loss, a lower adjusted operating result excluding its legacy Closed Block, a steady contribution from its mortgage insurance subsidiary Enact and a deterioration in the statutory results of its long-term care business. It also announced a larger share repurchase authorisation. This article reports the figures from the earnings release filed with the U.S. Securities and Exchange Commission, noting that some capital figures are company estimates because statutory statements were not final when the release was issued.

Headline results

Net loss available to common stockholders was $41 million, or $0.11 per diluted share. A year earlier the company reported net income of $116 million, or $0.28 per share, and in the second quarter of 2026 it reported $47 million, or $0.12. Diluted weighted-average shares were 375.5 million, down from 413.3 million a year earlier, a reduction of about 9% calculated here.

Adjusted operating income excluding the Closed Block, the measure that best reflects the ongoing business, was $102 million, or $0.27 per share, against $113 million, or $0.28, and $112 million, or $0.29, in the second quarter. Total adjusted operating income, which includes the Closed Block, was a loss of $44 million, against income of $17 million a year earlier and $2 million in the second quarter. Net investment losses reduced net income by $9 million, against gains of $78 million in the year-earlier quarter, which helps explain why net income moved so far from adjusted operating income.

Segments

Enact earned $132 million, against $134 million a year earlier and $143 million in the second quarter. Corporate and Other lost $30 million, against $21 million. The Closed Block lost $146 million, against $96 million a year earlier and $110 million in the second quarter.

The Closed Block's actual-versus-expected losses were $111 million before tax, against $127 million in the second quarter and $100 million a year earlier. The release attributes the main drivers to lower terminations, mostly from mortality, and higher long-term care benefit utilisation. In plain terms, policyholders were living longer or using benefits more than the company had assumed.

Legacy insurers

Genworth does not report long-term care, life and annuities as separate segments. They appear instead as statutory pre-tax results of the legacy insurers. Long-term care was a loss of $151 million, against a loss of $75 million a year earlier and $82 million in the second quarter. Life was a loss of $31 million, against $2 million and $22 million. Annuities earned $39 million, against $65 million and $110 million. The total statutory pre-tax result was a loss of $143 million, against a loss of $12 million a year earlier and a gain of $6 million in the second quarter.

The release says long-term care results continued to benefit from premium increases and benefit reductions under its in-force rate actions, with an estimated net present value of about $35.0 billion achieved since 2012. It does not, in the portion reviewed, explain the doubling of the quarterly statutory loss beyond the experience drivers described above.

Enact

Enact's primary new insurance written was $14.1 billion, against $14.0 billion a year earlier and $15.2 billion in the second quarter. The company attributes the 7% sequential decline to higher mortgage rates. Primary insurance in force was $275.1 billion, up about 1%. The loss ratio was 20%, against 15% a year earlier and 14% in the second quarter, and the pre-tax reserve release was $37 million, against $45 million. Pre-tax net investment income was $74 million, against $68 million.

Enact's equity was $4.21 billion, against $4.32 billion. Its PMIERs sufficiency ratio, the regulatory measure of capital against requirements for private mortgage insurers, was 158% against 162%, with $1.83 billion above requirements. Enact paid a quarterly dividend of $0.24 per share and entered into a quota share reinsurance agreement covering the 2028 book year. Genworth received $122 million of Enact capital returns at the holding level.

Capital and liquidity

The estimated risk-based capital ratio for the legacy insurance companies on a consolidated basis was 274%, down from 303% a year earlier and 286% in the second quarter. The company notes that RBC and PMIERs figures are estimates. Net investment income, net of taxes, was $603 million, down from $631 million a year earlier and $660 million in the second quarter.

Genworth Holdings had cash and liquid assets of $320 million, up from $254 million a year earlier and $215 million in the second quarter, with about $200 million held for future obligations. Outflows in the quarter included $80 million for share repurchases, $21 million to repurchase holding company debt at a discount and $6 million of debt service. Holding company debt principal fell by $21 million in the quarter.

Share repurchases

Genworth repurchased $80 million of its shares in the quarter at an average price of $10.05. Year to date it has repurchased $208 million at an average of $9.16, and since the programme began it has repurchased $998 million at an average of $6.66. The company announced a new $500 million authorisation. The release does not state a timetable for using it.

Management commentary

Chief executive Tom McInerney said Genworth "will be well positioned to drive sustainable long-term growth" as it executes its strategy. The portion of the release reviewed does not provide numerical guidance.

Reading the quarter

The picture is of two businesses moving in different directions. Enact remains profitable and well capitalised against its regulatory requirement, though its loss ratio rose. The legacy insurers lost more on long-term care and their capital ratio fell by 29 points over the year, calculated here. Share buybacks continued, and the holding company's reported cash inflow in the quarter was the $122 million of Enact capital returns. Policyholders should note that the RBC figure applies to the legacy insurers that issue their policies, while investors should note that the company's own adjusted measure excludes the Closed Block losses.