Genworth reports Q1 earnings, shifts focus to exclude legacy blocks

Genworth Financial continues to grow its CareScout brand while doubling down on efforts to proactively manage its mispriced long-term care insurance blocks.

The insurer reported first-quarter earnings Wednesday and held a conference call with Wall Street analysts. CEO Tom McInerney said Genworth will now report consolidated adjusted operating income excluding its closed block of legacy long-term care, life and annuity products — a move executives said better reflects the underlying performance of its ongoing insurance operations.

“Our closed block of legacy insurance products is separate from other business lines and self-sustaining,” McInerney explained. “The quarter-to-quarter gap volatility does not reflect the underlying economics or how the business is strategically positioned for the long term.”

For the first quarter, Genworth reported net income of $47 million and adjusted operating income of $109 million, excluding the closed block. Results were driven largely by strong performance at mortgage insurance subsidiary Enact Holdings, which generated $140 million in adjusted operating income.

From an insurance perspective, Genworth’s results underscore the continued importance of diversified earnings streams, particularly as legacy long-term care exposures remain a drag on reported results.

Enact continues to serve as the company’s primary earnings engine, benefiting from disciplined underwriting, strong persistency and a solid capital position. Executives said the mortgage insurer remains well positioned despite macroeconomic uncertainty, including interest rate volatility and housing market pressures.

An LTC journey

Genworth continues to actively manage its closed block of LTC insurance — a segment that has posed challenges across the industry due to adverse claims experience, longevity trends and pricing mismatches.

Since 2012, Genworth has received about $34.5 billion worth of benefit reductions and premium increases, said Jerome T. Upton, executive vice president and chief financial officer. These actions have reduced exposure to high-risk policy features, including rich inflation riders and lifetime benefits.

“We continue to proactively manage and reduce LTC risk and improve self-sustainability through prudent in-force management, including benefit reductions and premium rate increases,” Upton said. “We offer a suite of options to help policyholders manage premium increases while maintaining meaningful coverage.”

The company reiterated that the block is self-sustaining and will not require additional capital injections.

Expected 2026 premium approvals and benefit reductions will remain broadly in line with 2025 levels, contributing roughly $1 billion in economic value, executives said.

CareScout evolves

A key strategic priority for Genworth — and a notable development from an industry standpoint — is the buildout of its CareScout platform, which aims to integrate insurance with aging services.

Genworth is positioning CareScout as a hybrid model combining long-term care insurance, care coordination and provider matching. The platform is designed to address growing demand from an aging U.S. population, particularly as traditional LTC insurance penetration remains low.

Genworth said its CareScout Quality Network now covers approximately 97% of Americans aged 65 and older and is expanding beyond home care into senior living communities. The company expects to facilitate about 7,500 care matches in 2026, up from 3,255 in 2025.

“By the end of 2026, we anticipate having more than 1,000 home care locations and approximately 2,000 senior living communities as part of the CareScout Quality Network,” McInerney said.

Executives also highlighted opportunities to partner with other insurers managing LTC blocks, potentially creating a broader ecosystem and new fee-based revenue streams.

From an insurance industry perspective, the model reflects a broader shift toward integrating care delivery and financing — a trend gaining traction as insurers look to better manage claims costs and improve customer engagement.

Genworth continues to balance shareholder returns with investment in growth initiatives. The company repurchased $66 million in shares during the quarter and expects to allocate up to $225 million for buybacks in 2026.

At the same time, it plans to invest up to $55 million this year to scale CareScout’s services business.

Quarterly Highlights

• Net investment income, net of taxes, was $605 million in the quarter, down from $620 million in the prior quarter and up from $584 million in the prior year primarily from changes in limited partnership income.
• Mortality in LTC and life insurance closed blocks increased sequentially with seasonal trends, but was lower than the prior year.
• Genworth holding company cash and liquid assets of $166 million at the end of the quarter.

By The Numbers

• Total Revenue: $1.78 billion ($1.79 billion in Q1 2025)
• Net Income: $47 million ($54 million in Q1 2025)
• Earnings Per Share: 28 cents per share (27 cents in Q1 2025)
• Share Repurchases: $66 million in Q1 2026
• Dividend Declared: None
• Stock Price Movement: Shares rose 2.7% to $9.12

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