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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 driven by the strong performance of Enact Holdings, its long-term growth platform, which reached exciting milestones, including the expansion of its services. The company's share buybacks returned value to shareholders, offsetting ongoing struggles in the long-term care and life insurance segments. Additionally, a favorable $750 million legal ruling for AXA SA against Santander significantly improved Genworth's financial position, independent of Enact's performance. Furthermore, Genworth received a ratings upgrade from Moody's, indicating improved creditworthiness.

1.c. Company Highlights

2. Genworth Financial's Q3 2025 Earnings: A Mixed Bag

Genworth Financial reported a net income of $116 million and adjusted operating income of $17 million, or $0.04 per share, for the third quarter of 2025, missing analyst estimates of $0.1 per share. The results were driven by a strong performance from Enact, its mortgage insurance subsidiary, which contributed $134 million to Genworth's adjusted operating income. The company's cash and liquid assets stood at $254 million at the end of the quarter, bolstered by $110 million of capital returns from Enact.

Publication Date: Nov -09

📋 Highlights
  • Enact's Strong Contribution:: Enact, Genworth's mortgage insurance subsidiary, contributed $134 million to adjusted operating income despite a 9% YoY decline, maintaining a PMIER sufficiency ratio of 162%.
  • Capital Returns:: Genworth received $110 million in capital from Enact this quarter, totaling $1.2 billion since 2021, with $500 million expected in 2025 and $405 million revised for the full year.
  • Share Repurchase Momentum:: A $350 million repurchase authorization was announced, with $105 million spent in Q3 and October, supporting a $200–225 million annual buyback target.
  • CareScout Expansion:: Achieved 2,500 senior living matches in 48 states, acquired Seniorly, and launched Care Assurance (approved in 37 states), signaling growth in LTC services.
  • Financial Flexibility:: Genworth ended Q3 with $254 million in cash, a 303% consolidated risk-based capital ratio, and $3.6 billion in GLIC capital, alongside $790 million in low-cost debt (7x interest coverage).

Segment Performance

The long-term care Insurance segment reported an adjusted operating loss of $100 million, driven by a remeasurement loss. In contrast, Enact delivered $134 million in adjusted operating income, down 9% versus the prior year, with an estimated PMIER sufficiency ratio of 162%. The Life Insurance segment reported a loss of $2 million, while the Annuity segment reported $65 million in income, driven by equity market and interest rate movements.

Strategic Progress

Genworth made progress in its self-sustaining and customer-centric LTC, life, and annuity legacy businesses, securing $44 million of gross incremental premium approvals with an average premium increase of 63%. The company's multiyear rate action plan achieved $31.8 billion in net present value since it began in 2012. CareScout, the company's senior living platform, made significant announcements, including the acquisition of Seniorly.

Valuation and Outlook

With a Price-to-Book Ratio of 0.4, Genworth's valuation appears reasonable, considering its book value is largely driven by Enact's strong performance. The company's guidance for full-year 2025 Enact capital returns has been raised to around $405 million, up from the prior estimate of $325 million. Analysts estimate next year's revenue growth at -4.6%. The company's ability to maintain momentum and deliver on its objectives going forward will be crucial in justifying its current valuation.

Share Repurchase and Capital Management

Genworth continues to execute its share repurchase strategy, with a new $350 million repurchase authorization announced on September 18. The company repurchased $76 million in shares in the third quarter and an additional $29 million in October, with plans to allocate $200-225 million to share repurchases for the full year 2025.

3. NewsRoom

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Donald Smith & Co's Strategic Moves: Honda Motor Co Ltd Takes Center Stage

Nov -25

Source: gurufocus.com

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Donald Smith & Co Reduces Stake in Galiano Gold Inc

Nov -15

Source: gurufocus.com

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Donald Smith & Co's Recent Transaction with Chatham Lodging Trust

Nov -15

Source: gurufocus.com

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Donald Smith & Co Reduces Stake in Beazer Homes USA Inc

Nov -15

Source: gurufocus.com

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Donald Smith & Co Increases Stake in Allegiant Travel Co

Nov -15

Source: gurufocus.com

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Donald Smith & Co Reduces Stake in Algoma Steel Group Inc

Nov -15

Source: gurufocus.com

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Genworth: Modest Valuation, Strong Momentum, And Fresh Growth Catalysts

Nov -09

Source: seekingalpha.com

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Genworth Financial, Inc. (GNW) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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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CNO Financial Group

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Value: 6.7

Growth: 6.4

Quality: 5.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.3

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A-Score: 6.1/10

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Quality: 6.5

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A-Score: 5.9/10

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Growth: 8.4

Quality: 6.2

Yield: 5.0

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Volatility: 6.0

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A-Score: 5.4/10

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Growth: 7.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 3.3

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Genworth Financial

A-Score: 5.0/10

Value: 7.3

Growth: 2.4

Quality: 6.0

Yield: 0.0

Momentum: 7.5

Volatility: 6.7

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

8.66$

Current Price

8.66$

Potential

-0.00%

Expected Cash-Flows