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1. Company Snapshot

1.a. Company Description

Genworth Financial, Inc.provides insurance products in the United States and internationally.The company operates in three segments: Enact, U.S. Life Insurance, and Runoff.


The Enact segment offers mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and pool mortgage insurance products.The U.S. Life Insurance segment offers long-term care insurance products; and service traditional life insurance and fixed annuity products in the United States.The Runoff segment includes variable annuity, variable life insurance, and corporate-owned life insurance, as well as funding agreements.


It distributes its products through sales force, in-house sales representatives, and digital marketing programs.The company was founded in 1871 and is headquartered in Richmond, Virginia.

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1.b. Last Insights on GNW

Genworth Financial's recent performance was negatively impacted by decreased positions from major asset managers, including Allianz Asset Management GmbH, which lowered its stake by 34.6%, and Assenagon Asset Management S.A., which reduced its stake by 9.1%. Additionally, Universal Beteiligungs und Servicegesellschaft mbH decreased its stake by 72.5%. The company's Q4 2025 earnings call and results, which included a $0.16 per share earnings expectation, may have also contributed to investor skepticism. Despite a $350 million share buyback authorization, long-term care liabilities remain a concern.

1.c. Company Highlights

2. Genworth Financial's Q4 2025 Earnings: A Mixed Bag

Genworth Financial reported a net income of $2 million and adjusted operating income of $8 million in the fourth quarter of 2025, with earnings per share (EPS) coming in at $0.02, missing analyst estimates of $0.16. The company's revenue growth is expected to decline by 3.4% next year, according to analyst estimates. The company's financial performance was driven by strong results from Enact, which contributed $146 million to Genworth's adjusted operating income, partially offset by a loss of $114 million in the Closed Block, primarily from long-term care (LTC) business. The company's investment portfolio continued to perform well, with new investments achieving yields of approximately 6.5% for the quarter.

Publication Date: Feb -25

📋 Highlights
  • 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.

3. NewsRoom

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Citigroup Inc. Sells 369,799 Shares of Genworth Financial, Inc. $GNW

Mar -09

Source: defenseworld.net

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Genworth Financial, Inc. (GNW) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

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Genworth Financial Announces Fourth Quarter 2025 Results

Feb -23

Source: businesswire.com

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Genworth Financial (GNW) Expected to Announce Earnings on Monday

Feb -22

Source: defenseworld.net

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Donald Smith & Co's Strategic Moves: Equinox Gold Corp Sees a -2.9% Impact

Feb -12

Source: gurufocus.com

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Genworth Financial: A Deep Value Sum-Of-The-Parts Opportunity

Feb -10

Source: seekingalpha.com

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Genworth Financial, Inc. $GNW Stock Position Lowered by Allianz Asset Management GmbH

Feb -09

Source: defenseworld.net

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Universal Beteiligungs und Servicegesellschaft mbH Sells 337,753 Shares of Genworth Financial, Inc. $GNW

Feb -01

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.16%)

6. Segments

Long-term Care Insurance

Expected Growth: 4.73%

The 4.73% growth of Genworth Financial, Inc.'s Long-term Care Insurance is driven by increasing life expectancy, aging population, and rising healthcare costs. Additionally, the lack of government support for long-term care and the desire for independence among seniors contribute to the demand for private insurance solutions.

Life and Annuities

Expected Growth: 4.77%

Genworth Financial, Inc.'s Life and Annuities segment growth of 4.77% is driven by increasing demand for long-term care insurance, expansion in international markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved underwriting, and pricing discipline have contributed to the growth. Furthermore, the segment has benefited from the rising interest rates, which have increased investment income and improved profitability.

Enact

Expected Growth: 7.43%

Enact from Genworth Financial, Inc. growth of 7.43% driven by increasing demand for long-term care insurance, expansion into new markets, and strategic partnerships. Additionally, favorable regulatory environment, rising healthcare costs, and an aging population contribute to the growth.

Corporate and Other

Expected Growth: 5.07%

Genworth Financial's Corporate and Other segment growth of 5.07% is driven by effective cost management, favorable tax rates, and a decrease in interest expenses. Additionally, the company's strategic initiatives, such as the sale of its stake in Sino Mercury, have contributed to the segment's growth.

7. Detailed Products

Long-Term Care Insurance

Provides financial protection to individuals who require long-term care due to chronic illness, disability, or aging.

Mortgage Insurance

Provides insurance to lenders and investors in the event of borrower default, allowing for more accessible mortgage financing.

U.S. Mortgage Insurance

Offers mortgage insurance products to lenders and borrowers in the United States, helping to facilitate homeownership.

International Mortgage Insurance

Provides mortgage insurance products to lenders and borrowers in international markets, supporting homeownership globally.

Life Insurance

Offers a range of life insurance products, including term life, universal life, and whole life insurance, to help individuals and families achieve their financial goals.

Annuities

Provides fixed and variable annuity products to help individuals save for retirement and achieve a steady income stream in retirement.

8. Genworth Financial, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Genworth Financial, Inc. operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand recognition and diversified product offerings help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Genworth Financial, Inc.'s customers have some bargaining power due to the availability of alternative products and services. However, the company's strong relationships with its customers and its ability to offer customized solutions help to reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Genworth Financial, Inc. has a diversified supplier base, which reduces the bargaining power of suppliers. The company's strong relationships with its suppliers and its ability to negotiate favorable terms also help to mitigate the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants in the insurance industry is low due to the high barriers to entry, including regulatory hurdles and the need for significant capital investments. Genworth Financial, Inc.'s established brand and strong distribution network also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The insurance industry is highly competitive, and Genworth Financial, Inc. faces intense rivalry from established players. The company's ability to differentiate itself through its products and services, as well as its strong brand recognition, help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.57%
Debt Cost 9.38%
Equity Weight 82.43%
Equity Cost 9.38%
WACC 9.38%
Leverage 21.31%

11. Quality Control: Genworth Financial, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Globe Life

A-Score: 6.3/10

Value: 6.8

Growth: 6.3

Quality: 7.8

Yield: 1.0

Momentum: 8.5

Volatility: 7.7

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CNO Financial Group

A-Score: 6.0/10

Value: 6.6

Growth: 6.4

Quality: 4.4

Yield: 4.0

Momentum: 6.0

Volatility: 8.3

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Primerica

A-Score: 5.9/10

Value: 5.4

Growth: 7.2

Quality: 6.8

Yield: 3.0

Momentum: 4.0

Volatility: 9.0

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F&G Annuities & Life

A-Score: 5.7/10

Value: 8.8

Growth: 8.6

Quality: 5.9

Yield: 5.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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American Equity

A-Score: 5.4/10

Value: 9.5

Growth: 7.3

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Genworth Financial

A-Score: 4.9/10

Value: 7.5

Growth: 2.4

Quality: 4.9

Yield: 0.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.99$

Current Price

7.99$

Potential

-0.00%

Expected Cash-Flows