Genworth Financial Reports 4% Revenue Decline and 61% Drop in Net Income for Q1 2025

Genworth Financial, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenues of $1.786 billion, down from $1.864 billion in the same period last year, representing a decrease of 4%. The company's net income available to common stockholders was $54 million, or $0.13 per share, compared to $139 million, or $0.31 per share, in the prior year, marking a significant drop of 61%. The decrease in net income was attributed to lower premiums and net investment income, alongside increased benefits and expenses.

The company's premium income fell to $862 million from $875 million year-over-year, while net investment income also decreased to $739 million from $782 million. The decline in net investment gains was notable, dropping to $27 million from $49 million. Total benefits and expenses increased to $1.660 billion from $1.628 billion, driven by higher policy reserves and interest credited to policyholder accounts. The company reported a pre-tax income from continuing operations of $126 million, down from $236 million in the previous year.

In terms of operational metrics, Genworth's mortgage insurance segment, Enact, reported a primary persistency rate of 84%, with new insurance written decreasing by 7% compared to the previous year. The segment's loss ratio increased to 12% from 8%, reflecting a rise in new primary delinquencies. The company also noted a pre-tax reserve release of $47 million in the first quarter of 2025, down from $54 million in the same quarter of 2024, indicating a shift in loss performance.

Strategically, Genworth continues to focus on its legacy U.S. life insurance subsidiaries, particularly in long-term care insurance. The company has implemented a multi-year in-force rate action plan, achieving an estimated cumulative economic benefit of approximately $31.3 billion since 2012. Additionally, Genworth is expanding its CareScout services, which saw a 10% increase in its network of long-term care providers. The company plans to invest $45 million to $50 million in CareScout Services for the full year 2025, aiming to enhance its offerings in aging care solutions.

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 maintaining a disciplined capital allocation strategy, balancing investments in growth initiatives with returning value to shareholders through share repurchases and dividends. As of March 31, 2025, Genworth had $211 million in unrestricted cash and cash equivalents, reflecting its ongoing focus on liquidity and capital management.