Genworth Financial Reports Q2 2025 Results with Decreased Net Income and Increased Total Revenues

Genworth Financial, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $51 million, a decrease from $76 million in the same period last year. For the first half of 2025, net income available to common stockholders was $105 million, down from $215 million in the prior year. The company’s total revenues for the second quarter increased slightly to $1.796 billion from $1.769 billion, driven by a rise in premiums, which reached $865 million compared to $855 million in the previous year. However, net investment income fell to $802 million from $808 million, reflecting a challenging investment environment.

The company’s total assets increased to $87.336 billion as of June 30, 2025, up from $86.871 billion at the end of 2024. This growth was primarily attributed to a $770 million increase in fixed maturity securities, which benefited from lower interest rates, and a $195 million rise in limited partnerships. Conversely, cash and cash equivalents decreased by $251 million, largely due to net withdrawals from investment contracts and share repurchases. The total liabilities also saw a modest increase to $77.557 billion, primarily driven by a rise in future policy benefits, which grew to $54.111 billion from $53.610 billion.

Strategically, Genworth continues to focus on its Enact segment, which provides private mortgage insurance. The segment reported a primary persistency rate of 82% and new insurance written of $13.3 billion, a 3% decrease from the previous year. The company also announced a new share repurchase authorization of $350 million, reflecting its commitment to returning capital to shareholders. In addition, Genworth is actively pursuing growth initiatives through its CareScout business, which aims to provide innovative aging care services.

Operationally, Genworth's long-term care insurance segment faced challenges, with an adjusted operating loss of $67 million, compared to a loss of $26 million in the prior year. This increase was driven by unfavorable cash flow assumption updates and a lack of recurring net insurance recoveries. The company reported a cumulative economic benefit of approximately $31.6 billion from approved rate actions since 2012, which is critical for maintaining the self-sustainability of its legacy U.S. life insurance subsidiaries.

Looking ahead, Genworth remains cautious about the macroeconomic environment, including inflation and interest rate fluctuations, which could impact its financial performance. The company is committed to monitoring these trends closely and adjusting its strategies accordingly to enhance shareholder value while managing risks associated with its insurance products.