- Enact's Strong Performance: Generated $146M adjusted operating income in Q4 2025, contributing significantly to Genworth's financials despite a $114M Closed Block loss from LTC.
- Liquidity Position: Ended the quarter with $234M in cash and liquid assets, supporting strategic initiatives and capital returns.
- Share Repurchases: Repurchased $245M in 2025, totaling $828M since 2022, reducing shares outstanding by 24% to enhance shareholder value.
- CareScout Growth: Achieved 3,255 LTC policyholder matches in 2025, targeting 7,500 in 2026 with $25M+ revenue, backed by $50-55M in 2026 investments.
- Capital Return Strategy: Plans to return ~$500M to shareholders in 2026, including $405M from Enact, alongside a Moody’s ratings upgrade reflecting improved financial strength.
Segment Performance
Enact delivered strong performance, with adjusted operating income of $146 million in the quarter and $558 million for the full year. The Closed Block reported an adjusted operating loss of $114 million in the quarter and $317 million for the full year, primarily driven by LTC losses. As noted by Jerome Upton, Chief Financial Officer, the company continues to proactively manage LTC risk and maintain self-sustainability in the Closed Block through a comprehensive set of in-force management actions.
Valuation and Outlook
Genworth's Price-to-Book Ratio stands at 0.38, indicating that the stock may be undervalued. The company's financial strength has improved, evidenced by a ratings upgrade from Moody's. Genworth is well-positioned for 2026 with greater financial flexibility and continued confidence in its long-term strategy, with a focus on driving durable growth through Enact and CareScout. The company expects to allocate between $175 million and $225 million to share repurchases in 2026 and return approximately $500 million of capital to shareholders.
CareScout Progress
CareScout, Genworth's long-term growth strategy, is making progress, with 925 matches between LTC policyholders and home care providers in the fourth quarter and 3,255 matches nationwide for the full year. The company facilitated revenue of approximately $25 million is expected in 2026, with plans to invest approximately $50 million to $55 million in CareScout services, supporting the continued build-out of the technology platform and growth across both consumer and B2B channels.