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What changed in GENWORTH FINANCIAL INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of GENWORTH FINANCIAL INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+805 added−880 removedSource: 10-K (2025-02-28) vs 10-K (2024-02-29)

Top changes in GENWORTH FINANCIAL INC's 2024 10-K

805 paragraphs added · 880 removed · 643 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

163 edited+39 added−39 removed149 unchanged
Biggest changeBest assigned an initial public financial strength rating of “A-” to EMICO, with an outlook of stable. • On April 25, 2023, Fitch upgraded the financial strength rating of EMICO to “A-” from “BBB+” with an outlook of stable. • On March 1, 2023, Moody’s upgraded the credit rating of Genworth Holdings to “Ba1” from “Ba2” and upgraded the financial strength rating of EMICO to “A3” from “Baa1.” The outlooks for the ratings are stable. • On February 16, 2023, S&P upgraded the credit rating of Genworth Financial and Genworth Holdings to “BB-” from “B+” with an outlook of stable and upgraded the financial strength rating of EMICO to “BBB+” from “BBB.” S&P, Moody’s, Fitch, and A.M.
Biggest changeBest affirmed the financial strength rating of “A-” of EMICO with an outlook of stable. • On April 12, 2024, Fitch affirmed the financial strength rating of “A-” of EMICO and changed the outlook to positive from stable. • On March 27, 2024, Moody’s affirmed the financial strength rating of “A3” of EMICO and changed the outlook to positive from stable. • On February 27, 2024, S&P affirmed the credit rating of “BB-” of Genworth Financial and Genworth Holdings with an outlook of stable. • On January 8, 2024, S&P upgraded the financial strength rating of EMICO to “A-” from “BBB+” with an outlook of stable.
In another variation, generally referred to as modified pool insurance, policies are structured to include both an exposure limit for each individual loan, as well as an aggregate loss limit or a deductible for the entire pool. Currently, Enact has an insignificant amount of pool insurance in-force. Enact also performs fee-based contract underwriting services for its customers.
In another variation, generally referred to as modified pool insurance, policies are structured to include both an exposure limit for each individual loan, as well as an aggregate loss limit or a deductible for the entire pool. Currently, Enact has an insignificant amount of pool insurance in-force. Contract underwriting services Enact also performs fee-based contract underwriting services for its customers.
Insurance Regulation Our U.S. insurers are licensed and regulated in all jurisdictions in which they conduct insurance business. The extent of this regulation varies but Insurance Laws generally govern the financial condition of insurers, including standards of solvency, types and concentrations of permissible investments, establishment and maintenance of reserves, credit for reinsurance and requirements of capital adequacy.
Insurance Regulation Our U.S. insurers are licensed and regulated in all jurisdictions in which they conduct insurance business. The extent of this regulation varies but Insurance Laws generally govern the financial condition of insurers, including standards for solvency, types and concentrations of permissible investments, establishment and maintenance of reserves, credit for reinsurance and capital adequacy requirements.
Under the insurance laws of the State of North Carolina (our mortgage insurance subsidiaries’ primary state of domicile), an “extraordinary” dividend or distribution is defined as a dividend or distribution that, together with other dividends and distributions made within the preceding 12 months, exceeds the greater of: (i) 10% of the mortgage insurer’s statutory surplus as of the immediately prior year end; or (ii) the statutory net income during the prior calendar year.
Under the insurance laws of North Carolina (our mortgage insurance subsidiaries’ primary state of domicile), an “extraordinary” dividend or distribution is defined as a dividend or distribution that, together with other dividends and distributions made within the preceding 12 months, exceeds the greater of: (i) 10% of the insurer’s statutory surplus as of the immediately prior year end; or (ii) the statutory net income during the prior calendar year.
See “—Enact—Mortgage Insurance Regulation—State regulation—Reserves.” Surplus and capital requirements Insurance regulators have the discretionary authority, in connection with maintaining the licensing of our U.S. insurers, to limit or restrict insurers from issuing new policies, or policies having a dollar value over certain thresholds, if, in the regulators’ judgment, the insurer is not maintaining a sufficient amount of surplus or is in a hazardous financial condition.
See “—Enact—Mortgage Insurance Regulation—State regulation—Reserves.” Surplus and capital requirements Insurance regulators have discretionary authority, in connection with the licensing of our U.S. insurers, to limit or restrict insurers from issuing new policies, or policies having a dollar value over certain thresholds, if, in the regulators’ judgment, the insurer is not maintaining a sufficient amount of surplus or is in a hazardous financial condition.
We seek to maintain capital management and new business strategies to support meeting related regulatory requirements. Risk-based capital The NAIC has established RBC standards for U.S. life insurers, as well as a Risk-Based Capital for Insurers Model Act (“RBC Model Act”).
We seek to maintain capital management and new business strategies to support meeting related regulatory requirements. Risk-based capital standards The NAIC has established RBC standards for U.S. life insurers, as well as a Risk-Based Capital for Insurers Model Act (“RBC Model Act”).
The FCRA governs the access and use of consumer credit information in credit transactions and requires notices to consumers in certain circumstances.
FCRA governs the access and use of consumer credit information in credit transactions and requires notices to consumers in certain circumstances.
Policy and contract reserve sufficiency analysis The Insurance Laws of our U.S. life insurers’ domiciliary jurisdictions require each such insurer to conduct an annual analysis of the sufficiency of their life and health insurance and annuity reserves. Other jurisdictions where insurers are licensed may have certain reserve requirements that differ from those of their domiciliary jurisdictions.
Policy and contract reserve sufficiency analysis The Insurance Laws of our U.S. life insurers’ domiciliary jurisdictions require each such insurer to conduct an annual analysis of the sufficiency of its life and health insurance and annuity reserves. Other jurisdictions where insurers are licensed may have certain reserve requirements that differ from those of their domiciliary jurisdictions.
Enact competes on pricing, underwriting guidelines, customer relationships, service levels, policy terms, loss mitigation practices, perceived financial strength (including comparative financial strength ratings), reputation, product features, and effective use and ease of technology. There are currently six active mortgage insurers in the United States, including Enact.
Enact competes on pricing, underwriting guidelines, customer relationships, service levels, policy terms, loss mitigation practices, perceived financial strength (including comparative financial strength ratings), reputation, product features, and effective use and ease of technology. There are currently six active private mortgage insurers in the United States, including Enact.
If an insurer’s ACL RBC falls below specified levels, it would be subject to different degrees of regulatory action depending upon the level, ranging from requiring the insurer to propose actions to correct the capital deficiency to placing the insurer under regulatory control.
If an insurer’s ACL RBC ratio falls below specified levels, it would be subject to different degrees of regulatory action depending upon the level, ranging from requiring the insurer to propose actions to correct the capital deficiency to placing the insurer under regulatory control.
Department of Health and Human Services pursuant to the Health Insurance Portability and Accountability Act and various states regulate the disclosure and use of protected health information by health insurers and other covered entities, the physical and procedural safeguards employed to protect the security of that information, and the electronic transmission of such information.
Department of Health and Human Services pursuant to the Health Insurance Portability and Accountability Act (“HIPAA”) and various states regulate the disclosure and use of protected health information by health insurers and other covered entities, the physical and procedural safeguards employed to protect the security of that information, and the electronic transmission of such information.
Our principal U.S. mortgage insurance subsidiaries may pay dividends only from unassigned surplus; payments made from other sources, such as paid-in and contributed surplus, are categorized as distributions. Notice of all dividends must be submitted to the commissioner within five business days after declaration of the dividend, and at least 30 days before payment thereof.
Our principal U.S. mortgage insurance subsidiaries may pay dividends only from unassigned surplus; payments made from other sources, such as paid-in and contributed surplus, are categorized as distributions. Notice of all dividends or distributions must be submitted to the commissioner within five business days after declaration, and at least 30 days before payment thereof.
See note 22 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional information. The North Carolina Department of Insurance’s (“NCDOI”) current regulatory framework by which EMICO’s risk-to-capital ratio is calculated differs from the capital requirements of the GSEs as discussed under “—Other U.S.
See note 20 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional information. The North Carolina Department of Insurance’s (“NCDOI”) current regulatory framework by which EMICO’s risk-to-capital ratio is calculated differs from the capital requirements of the GSEs as discussed under “—Other U.S.
UFLIC’s obligations to us are secured by trust accounts. See note 9 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional details. External new business reinsurance is dependent on a number of factors, including price, availability, risk tolerance and capital levels.
UFLIC’s obligations to us are secured by trust accounts. See note 7 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional details. External new business reinsurance is dependent on a number of factors, including price, availability, risk tolerance and capital levels.
For additional information on the RBC of our U.S. life insurance subsidiaries, see note 22 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” Statutory accounting principles U.S. insurance regulators developed statutory accounting principles (“SAP”) as a basis of accounting used to monitor and regulate the solvency of insurers.
For additional information on the RBC of our U.S. life insurance subsidiaries, see note 20 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” Statutory accounting principles U.S. insurance regulators developed statutory accounting principles (“SAP”) as a basis of accounting used to monitor and regulate the solvency of insurers.
Mortgage insurers are not subject to the NAIC’s RBC requirements, but certain states and other regulators impose another form of capital requirement on mortgage insurers, requiring maintenance of a risk-to-capital ratio not to exceed 25:1. Each of Enact Holdings’ mortgage insurance subsidiaries met its capital requirements as of December 31, 2023.
Mortgage insurers are not subject to the NAIC’s RBC requirements, but certain states and other regulators impose another form of capital requirement on mortgage insurers, requiring maintenance of a risk-to-capital ratio not to exceed 25:1. Each of Enact Holdings’ mortgage insurance subsidiaries met its capital requirements as of December 31, 2024.
Mortgage insurers and their customers are subject to the possible sanctions of this law, which may be enforced by the CFPB, state insurance departments, state attorneys general and other enforcement authorities. The Fair Housing Act and the Fair Credit Reporting Act (“FCRA”) also affect the business of mortgage insurance in various ways.
Mortgage insurers and their customers are subject to the potential sanctions of this law, which may be enforced by the CFPB, state insurance departments, state attorneys general and other enforcement authorities. The Fair Housing Act and the Fair Credit Reporting Act (“FCRA”) also affect the business of mortgage insurance in various ways.
Regulation and Agency Qualification Requirements The GSEs impose eligibility requirements that private mortgage insurers must satisfy in order to be approved to insure loans purchased by the GSEs. The PMIERs aim to ensure that approved insurers possess the financial and operational capacity to serve as strong counterparties to the GSEs throughout various market conditions.
Regulation and Agency Qualification Requirements The GSEs impose eligibility requirements that private mortgage insurers must satisfy in order to be approved to insure loans purchased by the GSEs. PMIERs aims to ensure that approved insurers possess the financial and operational capacity to serve as strong counterparties to the GSEs throughout various market conditions.
In exchange for the accelerated claim payment, mortgage insurance is canceled, and Enact is discharged from any further liability on the identified loans. Distribution and customers Enact distributes its mortgage insurance products through a dedicated sales force located throughout the United States, including in-house sales representatives.
In exchange for the accelerated claim payment, mortgage insurance is canceled and Enact is discharged from any further liability on the identified loans. Distribution and customers Enact distributes its mortgage insurance products through a dedicated sales force located throughout the United States, including inside sales representatives.
Regulatory compliance is determined by a ratio of a company’s total adjusted capital (“TAC”) to its authorized control level RBC (“ACL RBC”). The minimum level of TAC before corrective action commences (“Company Action Level”) is two times the ACL RBC or three times the ACL RBC with a negative trend.
The extent of regulatory action is determined by a ratio of a company’s total adjusted capital (“TAC”) to its authorized control level RBC (“ACL RBC”). The minimum level of TAC before corrective action commences (“Company Action Level”) is two times the ACL RBC or three times the ACL RBC with a negative trend.
The new disclosure standard is consistent with the international Task Force on Climate-Related Financial Disclosures’ framework for reporting climate-related financial information.
The disclosure standard is consistent with the international Task Force on Climate-Related Financial Disclosures’ framework for reporting climate-related financial information.
In 2023, we introduced a new rewards and recognition platform that encourages our employees to recognize one another for exemplifying our values to make it human , make it about others , make it happen and make it better as they serve our current and future customers. • In addition to a competitive compensation program, we also offer our employees benefits such as life and health insurance, paid time off, paid family leave, identity theft protection, financial planning and a retirement savings plan. • To further support our employees, we continue to provide additional financial, health and wellbeing resources, as well as a flexible work schedule to allow employees additional time for self-care and the care of family members.
Our rewards and recognition platform encourages our employees to recognize one another for exemplifying our values to make it human , make it about others , make it happen and make it better as they serve our current and future customers. • In addition to a competitive compensation program, we also offer our employees benefits such as life and health insurance, paid time off, paid family leave, identity theft protection, financial planning and a retirement savings plan. • To further support our employees, we continue to provide additional financial, health and wellbeing resources, as well as a flexible work schedule to allow employees additional time for self-care and the care of family members.
Climate change and financial risks The topic of climate risk has come under increased scrutiny by the NAIC and insurance regulators.
Climate and financial risks The topic of climate risk has come under increased scrutiny by the NAIC and insurance regulators.
In addition, the PMIERs require private mortgage insurers to obtain the prior consent of the GSEs before taking certain actions, which may include entering into various intercompany agreements and commuting or reinsuring risk, among others.
In addition, PMIERs requires private mortgage insurers to obtain the prior consent of the GSEs before taking certain actions, which may include entering into various intercompany agreements and commuting or reinsuring risk, among others.
The New York State Department of Financial Services (“NYDFS”) issued a circular letter in 2020 to New York domestic and foreign authorized insurers, which applies to certain of our subsidiaries, stating that the 26 Table of Contents NYDFS expects insurers to integrate financial risks related to climate change into their governance frameworks, risk management processes and business strategies, and that insurers should develop their approach to climate related financial disclosure.
The New York State Department of Financial Services (“NYDFS”) issued a circular letter in 2020 to New York domestic and foreign authorized insurers, which applies to certain of our subsidiaries, stating that the NYDFS expects insurers to integrate financial risks related to climate change into their governance frameworks, risk management processes and business strategies, and that insurers should develop their approach to climate related financial disclosure.
We manage our assets to meet diversification, credit quality, yield and liquidity requirements of our policy and contract liabilities by investing primarily in fixed maturity securities, including government, municipal and corporate bonds and mortgage-backed and other asset-backed securities. We also hold commercial mortgage loans, limited partnerships and other invested assets, which includes derivatives, bank loans and short-term investments.
We manage our assets to meet diversification, credit quality, yield and liquidity requirements of our policy and contract liabilities by investing primarily in fixed maturity securities, including government, municipal and corporate bonds and mortgage-backed and other asset-backed securities. We also hold commercial mortgage loans, limited partnerships, equity securities and other invested assets, which include derivatives, bank loans and short-term investments.
A future determination that we or our counterparties are systemically significant could impose significant burdens on us, impact the way we conduct our business, increase compliance costs, duplicate state regulation and result in a competitive disadvantage. The Dodd-Frank Act established a Federal Insurance Office (“FIO”) within the U.S. Department of the Treasury.
A future determination that we or our counterparties are systemically important could impose significant burdens on us, impact the way we conduct our business, increase compliance costs, duplicate state regulation and result in a competitive disadvantage. The Dodd-Frank Act established a Federal Insurance Office (“FIO”) within the U.S. Department of the Treasury (“U.S. Treasury Department”).
If a loan becomes delinquent, Enact works closely with the customer, investor and servicer to attempt to cure the delinquency and allow the homeowner to retain ownership of the property. Claims result from delinquencies that are not cured, or from losses on short sales, other third-party sales or deeds-in-lieu of foreclosure that Enact approves.
If a loan becomes delinquent, Enact works closely with the customer, investor and servicer to attempt to cure the delinquency and allow the homeowner to retain ownership of the property. 8 Table of Contents Claims result from delinquencies that are not cured, or from losses on short sales, other third-party sales or deeds-in-lieu of foreclosure that Enact approves.
The primary purpose of the Insurance Laws regulating our insurance businesses and their equivalents in the other countries in which we operate, and the securities laws affecting certain of our products and our broker/dealer, is to protect our policyholders, contractholders and clients, not our stockholders.
The primary purpose of the Insurance Laws regulating our insurance businesses and their equivalents in the other countries in which we operate, and the securities laws affecting certain of our products and our broker-dealer, is to protect our policyholders, contractholders and clients.
For a discussion of the potential risks to our business associated with these amendments, see “Item 1A—Risk Factors—Enact Holdings’ U.S. mortgage insurance subsidiaries are subject to minimum statutory capital requirements, which if not met or waived, would result in restrictions or prohibitions on them doing business and could have a material adverse impact on our business, financial condition and results of operations.” Reserves Insurance Laws require our U.S. mortgage insurers to establish a special statutory contingency reserve in their statutory financial statements to provide for claims and other expenses in the event of significant economic declines.
For a discussion of the potential risks to our business associated with these amendments, see “Item 1A—Risk Factors—Enact Holdings’ U.S. mortgage insurance subsidiaries are subject to minimum statutory capital requirements, which if not met or waived, would result in restrictions or prohibitions on them doing business and could have a material adverse impact on our business, financial condition and results of operations.” 21 Table of Contents Reserves Insurance Laws require our U.S. mortgage insurers to establish a special statutory contingency reserve reflected in their statutory financial statements to provide for claims and other expenses payable in the event of significant economic declines.
Fannie Mae and Freddie Mac are government-sponsored enterprises and are collectively referred to as the “GSEs.” Credit protection and liquidity through secondary market sales allow mortgage lenders to increase their lending capacity, manage risk and expand financing access to prospective homeowners, many of whom are first time home buyers.
Fannie Mae and Freddie Mac are government-sponsored enterprises and are collectively referred to as the 5 Table of Contents “GSEs.” Credit protection and liquidity through secondary market sales allow mortgage lenders to increase their lending capacity, manage risk and expand financing access to prospective homeowners, many of whom are first time home buyers.
Our investment strategy focuses on: • managing interest rate risk, as appropriate, through monitoring asset durations relative to policyholder and contractholder obligations; • selecting assets based on fundamental, research-driven strategies; • emphasizing fixed-income, low-volatility assets while pursuing active strategies to enhance yield; • maintaining sufficient liquidity to meet financial obligations; 16 Table of Contents • regularly evaluating our asset class mix and pursuing additional investment classes when prudent; and • continuously monitoring asset quality and market conditions that could affect our assets.
Our investment strategy focuses on: • managing interest rate risk, as appropriate, through monitoring asset durations relative to policyholder and contractholder obligations; • selecting assets based on fundamental, research-driven strategies; • emphasizing fixed-income, low-volatility assets while pursuing active strategies to enhance yield; • maintaining sufficient liquidity to meet financial obligations; • regularly evaluating our asset class mix and pursuing additional investment classes when prudent; and • continuously monitoring asset quality and market conditions that could affect our assets.
The NAIC has adopted a new standard for insurance companies to report their climate-related risks as part of its annual Climate Risk Disclosure Survey, which applies to insurers that meet the reporting threshold of $100 million in countrywide direct premium and are licensed in one of the participating jurisdictions.
In 2022, the NAIC adopted a standard for insurance companies to report their climate-related risks as part of its annual Climate Risk Disclosure Survey, which applies to insurers that meet the reporting threshold of $100 million in countrywide direct premium and are licensed in one of the participating jurisdictions.
Claim activity is not evenly spread across the coverage period of loans Enact insures. The number of delinquencies may not correlate directly with the number of claims received because the rate at which 8 Table of Contents delinquencies are cured is influenced by borrowers’ financial resources and circumstances, as well as regional economic differences.
Claim activity is not evenly spread across the coverage period of loans Enact insures. The number of delinquencies may not correlate directly with the number of claims received because the rate at which delinquencies are cured is influenced by borrowers’ financial resources and circumstances, as well as regional economic differences.
In addition, through an arrangement with an outsourcing provider, we have a team of professionals in India and the Philippines who provide a variety of services primarily to our U.S. life insurance subsidiaries and certain corporate functions, including data entry, transaction processing and functional support.
In addition, through an arrangement with an outsourcing provider, we have a team of professionals in India and the Philippines who provide a variety of services primarily to our U.S. 12 Table of Contents life insurance subsidiaries and certain corporate functions, including data entry, transaction processing and functional support.
Virginia, our insurance holding company group’s lead state, adopted the amendments in 2022, and we submitted our first annual filing in 2023. It is unclear how the development of a group capital tool by the NAIC will interact with existing capital requirements for U.S. insurance companies.
Virginia, our insurance holding company group’s lead state, adopted the amendments in 2022, and we submitted our first annual filing in 2023. It is unclear how the development of group capital measures by the NAIC will interact with existing capital requirements for U.S. insurance companies.
Privacy and cybersecurity In the United States, federal and state laws and regulations require financial institutions, including insurance companies, to protect the privacy and security of consumer financial information and to notify consumers about 27 Table of Contents policies and practices relating to the collection, use and disclosure of consumer information, as well as policies relating to protecting the confidentiality, integrity and availability of that information.
Privacy and cybersecurity In the United States, federal and state laws and regulations require financial institutions, including insurance companies, to protect the privacy and security of consumer financial information and to notify consumers about policies and practices relating to the collection, use and disclosure of consumer information, as well as policies relating to protecting the confidentiality, integrity and availability of that information.
The capital requirement for each is generally determined by applying factors which vary based upon the degree of risk to various asset, premium and reserve items. The formula is an early warning tool to identify possible weakly capitalized companies for purposes of initiating further regulatory action.
The capital requirement for each is generally determined by applying factors which vary based upon the degree of risk to various asset, premium and reserve items. The formula is an early warning tool to identify possible weakly capitalized companies for purposes of facilitating regulatory action.
Regulation and Agency Qualification Requirements.” Selected financial information and operating performance measures regarding our Enact segment are included under “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Enact segment.” Products and services Enact offers the following mortgage insurance products: Primary mortgage insurance Substantially all of Enact’s policies are primary mortgage insurance, which provides protection on individual loans at specified coverage percentages.
Selected financial information and operating performance measures regarding our Enact segment are included under “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Enact segment.” Products and services Enact offers the following mortgage insurance products: Primary mortgage insurance Substantially all of Enact’s policies are primary mortgage insurance, which provides protection on individual loans at specified coverage percentages.
Since insurance regulators are primarily concerned with 20 Table of Contents ensuring an insurer’s ability to pay its current and future obligations to policyholders, statutory accounting conservatively values the assets and liabilities of insurers, generally in accordance with standards specified by the insurer’s domiciliary jurisdiction.
Since insurance regulators are primarily concerned with ensuring an insurer’s ability to pay its current and future obligations to policyholders, statutory accounting conservatively values the assets and liabilities of insurers, generally in accordance with standards specified by the insurer’s domiciliary jurisdiction.
In addition, federal bank regulations require certain bank-regulated counterparties to include in certain derivatives contracts terms that delay or restrict the rights of 25 Table of Contents counterparties, which could adversely affect our ability to terminate, or realize amounts to be received under, such derivatives agreements.
In addition, federal bank regulations require certain bank-regulated counterparties to include in certain derivatives contracts terms that delay or restrict the rights of counterparties, which could adversely affect our ability to terminate, or realize amounts to be received under, such derivatives agreements.
The PMIERs are comprehensive, covering virtually all aspects of our U.S. mortgage insurance subsidiaries’ business and operations as private mortgage insurers of GSE loans, including internal risk management and quality controls, underwriting, claim processing and loss mitigation, among other aspects.
PMIERs is comprehensive, covering virtually all aspects of our U.S. mortgage insurance subsidiaries’ business and operations as private mortgage insurers of GSE loans, including internal risk management and quality controls, underwriting, claim processing and loss mitigation, among other aspects.
For further information related to our invested assets, see “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Investments and Derivative Instruments” and notes 5, 6 and 21 to our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” Regulation General Our insurance operations are subject to a wide variety of laws and regulations.
For further information related to our invested assets, see “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Investments and Derivative Instruments” and notes 4, 5 and 19 to our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” Regulation General Our insurance operations are subject to a wide variety of laws and regulations.
Regulation and Agency Qualification Requirements.” 21 Table of Contents In August 2023, the NAIC adopted amendments to the Mortgage Guaranty Insurance Model Act (the “MGI Model Act”) and is in the process of making conforming revisions to the Statement of Statutory Accounting Principles No. 58—Mortgage Guaranty Insurance.
Regulation and Agency Qualification Requirements.” In August 2023, the NAIC adopted amendments to the Mortgage Guaranty Insurance Model Act (the “MGI Model Act”) and is in the process of making conforming revisions to Statement of Statutory Accounting Principles No. 58—Mortgage Guaranty Insurance.
Our insurance products and businesses are also affected by U.S. federal, state and local tax laws, and the tax laws of non-U.S. jurisdictions. Our securities operations, including our insurance products that are regulated as securities, such as variable annuities, are subject to U.S. federal and state and non-U.S. securities laws and regulations. The U.S. Securities and Exchange Commission (“SEC”), U.S.
Our insurance products and businesses are also affected by U.S. federal, state and local tax laws, and the tax laws of non-U.S. jurisdictions. Our securities operations, including our insurance products that are regulated as securities, such as variable annuities, are subject to U.S. federal and state securities laws and regulations. The U.S.
Typically, a borrower with a higher credit score has a lower likelihood of defaulting on a loan. FICO credit scores range up to 850, with a score of 620 or more generally viewed as a “prime” loan and a score below 620 generally viewed as a “sub-prime” loan.
Typically, a borrower with a higher credit score has a lower likelihood of defaulting on a loan. FICO credit scores range up to 850, with a 7 Table of Contents score of 620 or more generally viewed as a “prime” loan and a score below 620 generally viewed as a “sub-prime” loan.
The majority of the CPRA provisions went into effect on January 1, 2023. Failure to comply with the CCPA risks regulatory fines, and the law grants a private right of action for any unauthorized disclosure of certain personal information not subject to an exemption as a result of failure to maintain reasonable security procedures and practices.
The majority of the CPRA provisions went into effect on January 1, 2023. Failure to comply with the CCPA risks regulatory fines, and the law grants a private right of action for any unauthorized disclosure of certain personal information as a result of failure to maintain reasonable security procedures and practices.
Our risk management framework includes seven key components: risk type key attributes (to ensure full coverage); identification of risk exposures to identify top risks; business strategy and planning; governance; risk assessment (both qualitative and quantitative); risk appetite and limits; and stress testing.
Our risk management framework includes seven key components: risk type key attributes; identification of risk exposures to identify top risks; business strategy and planning; governance; risk assessment (both qualitative and quantitative); risk appetite and limits; and stress testing.
The Real Estate Settlement Procedures Act of 1974 (“RESPA”) applies to most residential mortgages insured by private mortgage insurers. Mortgage insurance is considered a “settlement service” for purposes of loans subject to RESPA.
The Real Estate Settlement Procedures Act of 1974 (“RESPA”) applies to most residential mortgages insured by private mortgage insurers. Mortgage insurance is considered a “settlement service” for purposes of 22 Table of Contents loans subject to RESPA.
The enactment of the CAMT did not have a material impact on our financial statements for the year ended December 31, 2023.
The enactment of the CAMT did not have a material impact on our financial statements for the year ended December 31, 2024 or 2023.
Many of the provisions are no longer applicable, but for loans that became non-performing due to a COVID-19 hardship, PMIERs was temporarily amended with respect to each non-performing loan that (i) had an initial missed monthly payment occurring on or after March 1, 2020 and prior to April 1, 2021 or (ii) is subject to a forbearance plan granted in response to a financial hardship related to COVID-19, the terms of which are materially consistent with terms of 23 Table of Contents forbearance plans offered by the GSEs.
Many of the provisions are no longer applicable, but for loans that became non-performing due to a hardship related to the coronavirus pandemic (“COVID-19”), PMIERs was temporarily amended with respect to each non-performing loan that (i) had an initial missed monthly payment occurring on or after March 1, 2020 and prior to April 1, 2021 or (ii) is subject to a forbearance plan granted in response to a financial hardship related to COVID-19, the terms of which are materially consistent with terms of forbearance plans offered by the GSEs.
Genworth Financial’s U.S. life insurance subsidiaries offer long-term care insurance and also manage in-force blocks of life insurance and annuity products that are no longer sold. Genworth Financial also has a start-up business whereby it offers fee-based services, advice, consulting and other products and services through CareScout, its indirect subsidiary.
Genworth Financial’s legacy U.S. life insurance subsidiaries offer long-term care insurance and also manage in-force blocks of life insurance and annuity products that are no longer sold. Genworth Financial also has a start-up business whereby it offers fee-based services, advice, consulting and other aging care products and services through CareScout.
The NYDFS also amended the regulation that governs enterprise risk management, effective as of August 13, 2021, that requires an insurance group to include certain additional risks, such as climate change risk, in its enterprise risk management function. In addition, the FIO is authorized to monitor the U.S. insurance industry under the Dodd-Frank Act.
The NYDFS also amended the regulation that governs enterprise risk management, effective as of August 13, 2021, to require an insurance group to include certain additional risks, such as climate change risk, in its enterprise risk management function. 26 Table of Contents In addition, the FIO is authorized to monitor the U.S. insurance industry under the Dodd-Frank Act.
Related to these identified risk types and our process for emerging risks, we have classified both our top and emerging risks and report these risks to both senior management and the risk committee of Genworth Financial’s Board of Directors.
Related to these identified risk types and our process for emerging risks, we report both our top and selected emerging risks to senior management and the risk committee of Genworth Financial’s Board of Directors.
Collateral must be maintained in accordance with the rules of the ceding company’s state of domicile and must be readily accessible by the ceding company to cover claims under the reinsurance agreement.
Collateral must be maintained in accordance with the rules of the ceding company’s state of domicile and must be readily accessible by the ceding 13 Table of Contents company to cover claims under the reinsurance agreement.
We cannot predict the effect of all the regulations or legislation adopted under the Dodd-Frank Act on financial markets generally, or on our businesses specifically, the additional costs associated with compliance with such regulations or legislation, or any changes to our operations that may be necessary to comply with the Dodd-Frank Act and the regulations thereunder, any of which could have a material adverse effect on our business, results of operations, cash flows or financial condition.
We cannot predict the effect of all the regulations or legislation adopted under the Dodd-Frank Act or other federal statutes on financial markets generally, or on our businesses specifically, the additional costs associated 25 Table of Contents with compliance with such regulations or legislation, or any changes to our operations that may be necessary to comply with the Dodd-Frank Act or other federal statutes and the regulations thereunder, any of which could have a material adverse effect on our business, results of operations, cash flows or financial condition.
At present, mortgage insurance products are primarily geared towards secondary market sales to the GSEs. Enact’s mortgage insurance products predominantly insure prime-based, individually underwritten residential mortgage loans. 5 Table of Contents The overall U.S. residential mortgage market encompasses both primary and secondary markets.
At present, mortgage insurance products are primarily geared towards secondary market sales to the GSEs. Enact’s mortgage insurance products predominantly insure prime-based, individually underwritten residential mortgage loans. The overall U.S. residential mortgage market encompasses both primary and secondary markets.
Generally, “A minus” loans are loans where the borrowers have FICO credit scores between 575 and 660 and have a blemished credit history. The weighted average FICO score of Enact’s primary insurance in-force was 744 as of December 31, 2023.
Generally, “A minus” loans are loans where the borrowers have FICO credit scores between 575 and 660 and have a blemished credit history. The weighted average FICO score of Enact’s primary insurance in-force was 745 as of December 31, 2024.
These contingency reserves generally are held until the earlier of (i) 10 years or (ii) when loss ratios exceed 35%, in which case the amount above 35% can be released under certain circumstances, although regulators have granted discretionary releases from time to time.
These contingency reserves generally are held until the earlier of (i) 10 years, after which such amounts can be released into surplus, or (ii) when loss ratios exceed 35%, in which case the amount above 35% can be released under certain circumstances, although regulators have granted discretionary releases from time to time.
The new guidance could have the effect of simplifying and shortening the FSOC’s procedures for designating certain financial companies as non-bank SIFIs. We have not been, nor do we believe we will be, designated as systemically significant by the FSOC.
The new guidance could have the effect of simplifying and shortening the FSOC’s procedures for designating certain financial companies as non-bank SIFIs. We have not been, nor do we believe we will be, designated as a non-bank SIFI by the FSOC.
For additional information regarding cybersecurity risk management, see “Item 1C—Cybersecurity.” We have identified the following as the most significant risk types to our business: credit risk, market risk, insurance risk, housing risk, model risk, operational risk and information technology risk.
For additional information regarding cybersecurity risk management, see “Item 1C—Cybersecurity.” 11 Table of Contents We have identified the following as the most significant risk types to our business: credit risk, market risk, insurance risk, housing risk, operational risk, model risk and information technology risk.
We have built 29 Table of Contents and continue to actively engage strong community connections and partnerships with diverse organizations to promote equitable opportunities and have implemented training initiatives to enhance employee inclusivity and self-awareness. • We empower our employees to embrace their differences and commonalities to contribute to a culture of belonging.
We have built and continue to actively engage strong community connections and partnerships with diverse organizations to promote equal opportunities and have implemented training initiatives to enhance employee inclusivity and self-awareness. • We empower our employees to embrace their differences and commonalities to contribute to a culture of belonging.
For additional information on our reinsurance agreements and the associated risks and impacts on our business, see “Item 1A—Risk Factors—Reinsurance may not be available, affordable or adequate to protect us against losses.” Enact Enact Holdings, through Enact Mortgage Insurance Corporation (“EMICO”), its principal U.S. mortgage insurance subsidiary, cedes a portion of its mortgage insurance risk to reduce the risk of loss and to obtain capital credit towards the financial requirements of the GSEs’ PMIERs.
For additional information on our reinsurance agreements and the associated risks and impacts on our business, see “Item 1A—Risk Factors—Reinsurance may not be available, affordable or adequate to protect us against losses.” Enact Enact Holdings, through EMICO, cedes a portion of its mortgage insurance risk to reduce the risk of loss and to obtain capital credit towards the financial requirements of the GSEs’ PMIERs.
Best review their ratings periodically and we cannot assure you that we will maintain our current ratings in the future. These and other agencies may also rate our holding companies or insurance subsidiaries on a solicited or an unsolicited basis.
S&P, Moody’s, Fitch, and A.M. Best review their ratings periodically and we cannot assure you that we will maintain our current ratings in the future. These and other agencies may also rate our holding companies or insurance subsidiaries on a solicited or an unsolicited basis.
Excise tax incurred on our share repurchases is recognized as part of the cost basis of the treasury stock acquired and not reported as part of income tax expense, and it did not have a material impact on our financial position for the year ended December 31, 2023.
Excise tax incurred on our share repurchases is recorded as part of the cost basis of the treasury stock acquired and not reported as part of income tax expense, and it did not have a material impact on our financial position for the years ended December 31, 2024 and 2023.
As of February 27, 2024, EMICO was rated in terms of financial strength as follows: Rating Agency Rating Rating categories S&P A- (7 th highest of 21) AAA to D Moody’s A3 (7 th highest of 21) Aaa to C Fitch Ratings, Inc. (“Fitch”) A- (7 th highest of 21) AAA to C A.M.
As of February 26, 2025, EMICO was rated in terms of financial strength as follows: Rating Agency Rating Rating categories S&P A- (7 th highest of 21) AAA to D Moody’s A3 (7 th highest of 21) Aaa to C Fitch Ratings, Inc. (“Fitch”) A (6 th highest of 21) AAA to C A.M.
SB 253 requires entities with more than $1.0 billion in annual revenue to annually disclose their Scope 1, Scope 2 and Scope 3 emissions in accordance with the Greenhouse Gas Protocol and obtain limited assurance over those disclosures beginning in 2026 and reasonable assurance beginning in 2030.
SB 253 requires entities with more than $1.0 billion in annual revenue to annually disclose their Scope 1, Scope 2 and Scope 3 emissions in accordance with the Greenhouse Gas Protocol and obtain assurance over those disclosures.
In November 2023, the FTC published a final rule further amending the Safeguards Rule to require notification to the FTC of certain data breach events. These additional amendments take effect in May 2024.
In November 2023, the FTC published a final rule further amending the Safeguards Rule to require notification to the FTC of certain data breach events. These additional amendments became effective in May 2024.
No dividend may be paid unless the commissioner has not disapproved or has approved the payment within that 30-day period. Any distribution, regardless of amount, requires that same 30-day notice to the commissioner, but also requires the commissioner’s affirmative approval before being paid.
No dividend may be paid unless the commissioner has not disapproved or has approved the payment within that 30-day period. Any distribution, regardless of amount, requires the commissioner’s affirmative approval before being paid.
In June 2022, we outsourced operational servicing of our life insurance and fixed annuity blocks to a third-party servicer. In connection with the outsourcing, we will convert certain administrative systems to those used 12 Table of Contents by the third-party servicer over the next few years, with a targeted completion date in 2026.
In June 2022, we outsourced operational servicing of our life insurance and fixed annuity blocks to a third-party servicer. In connection with the outsourcing, we are converting certain administrative systems to those used by the third-party servicer over the next few years, with a targeted completion date in 2026.
Financial Industry Regulatory Authority, state securities authorities and similar non-U.S. authorities regulate and supervise these products.
Securities and Exchange Commission (“SEC”), Financial Industry Regulatory Authority, state securities authorities and similar non-U.S. authorities regulate and supervise these products.
Workforce demographics • We are proud to embrace a future where the diversity of our associates, leadership and executives contribute to a culture of belonging and inclusion. • As of December 31, 2023, we employed approximately 2,700 full-time and part-time employees globally, none of which are subject to a collective bargaining agreement.
Workforce • We are proud to embrace a future where our associates, leadership and executives contribute to a culture of belonging and inclusion. • As of December 31, 2024, we employed approximately 2,960 full-time and part-time employees globally, none of which are subject to a collective bargaining agreement.
As of February 27, 2024, Genworth Holdings’ senior unsecured debt was assigned the following credit ratings: Rating Agency Rating Rating categories S&P BB- (13 th highest of 21) AAA to D Moody’s Ba1 (11 th highest of 21) Aaa to C A.M.
As of February 26, 2025, Genworth Holdings’ senior unsecured debt guaranteed by Genworth Financial was assigned the following credit ratings: Rating Agency Rating Rating categories S&P BB- (13 th highest of 21) AAA to D Moody’s Ba1 (11 th highest of 21) Aaa to C A.M.
We manage our U.S. life insurance subsidiaries on a standalone basis. Accordingly, the U.S. life insurance subsidiaries will continue to rely on their statutory capital, significant 4 Table of Contents reserves, prudent management of the in-force blocks and long-term care insurance in-force rate actions to satisfy policyholder obligations.
As we manage our legacy U.S. life insurance subsidiaries on a standalone basis, these entities will continue to rely on their statutory capital, significant reserves, prudent management of the in-force blocks and long-term care insurance in-force rate actions to satisfy policyholder obligations.
These efforts have traditionally involved loan modifications intended to enable qualified borrowers to make restructured loan payments or sell the property, thereby potentially reducing claim amounts. Borrower forbearance plans offered by the GSEs, including as a result of the coronavirus pandemic (“COVID-19”), allow deferred or reduced payments for borrowers experiencing financial hardship under certain circumstances.
These efforts have traditionally involved loan modifications intended to enable qualified borrowers to make restructured loan payments or sell the property, thereby potentially reducing claim amounts. Borrower forbearance plans offered by the GSEs allow deferred or reduced payments for borrowers experiencing financial hardship under certain circumstances.
In addition, we have processes in place to identify, understand and manage emerging risks (such as artificial intelligence), with the 11 Table of Contents goal of mitigating adverse impacts to our business.
In addition, we have processes in place to identify, understand and manage emerging risks (such as artificial intelligence), with the goal of mitigating adverse impacts to our business and to enhance decision making.
Best A- (4 th highest of 13) A++ to D As of February 27, 2024, our principal life insurance subsidiaries were rated in terms of financial strength by A.M. Best as follows: Company A.M.
Best A- (4 th highest of 13) A++ to D As of February 26, 2025, our principal U.S. life insurance subsidiaries were rated in terms of financial strength by A.M. Best as follows: Company A.M.
This reserve reduces the policyholder surplus of our U.S. mortgage insurers, and therefore, their ability to pay dividends to our holding companies. See note 22 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for information on the statutory contingency reserve for our U.S. mortgage insurers.
This reduces the policyholder surplus of our U.S. mortgage insurers, and therefore, their ability to pay dividends to our holding companies until those contingency reserves are released back into surplus. See note 20 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for information on the statutory contingency reserve for our U.S. mortgage insurers.
Generally, Enact’s risk across all policies written is approximately 25% of the underlying primary insurance in-force, but may vary from policy to policy, typically between 6% and 35% coverage. The loan amount and coverage percentage determine Enact’s risk in-force on each insured loan.
Generally, Enact’s risk across all policies written is approximately 25% of the underlying primary insurance in-force, but may vary from policy to policy, typically between 6% and 35% coverage.
There was no other U.S. federal income tax-related legislation or administrative guidance issued in 2023 or 2022 that had a significant impact on our results of operations or financial condition.
Other Laws and Regulations Changes in tax laws There was no U.S. federal income tax-related legislation or administrative guidance issued in 2024 that had a significant impact on our results of operations or financial condition.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAny material weaknesses in internal control over financial reporting, such as those we have reported in the past, or any other failure to maintain effective disclosure controls and procedures could result in material errors or restatements in our historical financial statements or untimely filings, which could cause investors to lose confidence in our reported financial information, that would result in a material adverse impact on our business and financial condition. 56 Table of Contents Our computer systems and those of our third-party service providers have in the past and may in the future fail or be compromised, including through cybersecurity breaches; we may experience issues from new and complex information technology methodologies such as artificial intelligence; and unanticipated problems could materially adversely impact our disaster recovery systems and business continuity plans, any of which could damage our reputation, impair our ability to conduct business effectively, result in enforcement action or litigation, and materially adversely affect our business, financial condition and results of operations.
Biggest changeOur computer systems and those of our third-party service providers have in the past failed or been compromised and may in the future fail or be compromised, including through cybersecurity breaches; we may experience issues from new and complex information technology methodologies such as artificial intelligence; and unanticipated problems could materially adversely impact our disaster recovery systems and business continuity plans, any of which could expose confidential information such as personal information of our customers or employees, damage our reputation, impair our ability to conduct business effectively, result in enforcement action or litigation, and materially adversely affect our business, financial condition and results of operations.
Liquidity, Financial Strength and Credit Ratings, and Counterparty and Credit Risks • Genworth Financial and Genworth Holdings depend on the ability of Enact Holdings and its subsidiaries to pay dividends and make other payments and distributions to each of them and to meet their obligations. • Our sources of capital have become more limited, and under certain conditions we may need to seek additional capital on unfavorable terms. • Adverse rating agency actions have in the past resulted in a loss of business and adversely affected our results of operations, financial condition and business, and future adverse rating actions could have a further and more significant adverse impact on us. • Defaults by counterparties to our reinsurance arrangements or to derivative instruments we use to hedge our business risks, or defaults by us on agreements we have with these counterparties, may expose us to risks we sought to mitigate, which could have a material adverse effect on our business, results of operations and financial condition. • Defaults or other events impacting the value of our fixed maturity securities portfolio may reduce our income.
Liquidity, Financial Strength and Credit Ratings, and Counterparty and Credit Risks • Genworth Financial and Genworth Holdings depend on the ability of Enact Holdings and its subsidiaries to pay dividends and make other payments and distributions to each of them to meet their obligations. • Our sources of capital have become more limited, and under certain conditions we may need to seek additional capital on unfavorable terms. • Adverse rating agency actions have in the past resulted in a loss of business and adversely affected our results of operations, financial condition and business, and future adverse rating actions could have a further and more significant adverse impact on us. • Defaults by counterparties to our reinsurance arrangements or to derivative instruments we use to hedge our business risks, or defaults by us on agreements we have with these counterparties, may expose us to risks we sought to mitigate, which could have a material adverse effect on our business, results of operations and financial condition. • Defaults or other events impacting the value of our fixed maturity securities portfolio may reduce our income.
Our insurance and investment products, such as those included in our policyholder account balances and separate accounts, are sensitive to interest rate fluctuations and expose us to the risk that declines in interest rates or tightening credit spreads will reduce our interest rate margin or net spreads (the difference between the returns we earn on the investments that support our obligations under these products and the amounts that we pay to policyholders and contractholders).
Our insurance and investment products, such as those included in our policyholder account balances and separate accounts, are sensitive to interest rate fluctuations and expose us to the risk that declines in interest rates or tightening credit spreads will reduce our interest rate margin or net spreads (the difference between the returns we earn on the investments that support our obligations under these products and the amounts we pay to policyholders and contractholders).
Once a customer is accepted into Enact Holdings’ delegated underwriting program, a loan originated by that customer is generally insured without validating the accuracy of the data submitted, investigating for fraud or reviewing to ensure the customer followed the pre-established guidelines for delegated underwriting.
Once a customer is accepted into Enact Holdings’ delegated underwriting program, a loan originated by that customer is generally insured without validating the accuracy of the data submitted, investigating for fraud or reviewing to ensure the customer followed the pre-established delegated underwriting guidelines.
In our insurance operations, we are, have been, or may become subject to class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, increases to in-force long-term care insurance premiums, payment of contingent or other sales commissions, claims payments and procedures, product design, product disclosure, product administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, recommending unsuitable products to customers, our pricing structures and business practices in our mortgage insurance subsidiaries, such as captive reinsurance arrangements with lenders and contract underwriting services, violations of RESPA or related state anti-inducement laws, mortgage insurance policy rescissions and curtailments, and breaching fiduciary or other duties to customers, including but not limited to cybersecurity breaches of customer information.
In our insurance operations, we are, have been, or may become subject to class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, increases to in-force long-term care insurance premiums, payment of contingent or other sales commissions, claims payments and procedures, product design, product disclosure, product administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, recommending unsuitable products to customers, our pricing structures and business practices in our mortgage insurance subsidiaries, such as captive reinsurance arrangements with lenders and contract underwriting services, violations of RESPA or related state anti-inducement laws, and mortgage insurance policy rescissions and curtailments, as well as breaching fiduciary or other duties to customers, including but not limited to cybersecurity breaches of customer information.
The direct or indirect effects of such adverse ratings actions or any future actions could include, but are not limited to: • ceasing and/or reducing new sales of our products or limiting the business opportunities we are presented with; 42 Table of Contents • adversely affecting our relationships with distributors, including the loss of exclusivity under certain agreements with our independent sales intermediaries and distribution partners; • causing us to lose key distributors that have ratings requirements that we may no longer satisfy (or resulting in our renegotiation of new, less favorable arrangements with those distributors); • requiring us to modify some of our existing products or services to remain competitive, including reducing premiums we charge, or introduce new products or services; • materially increasing the number or amount of policy surrenders, withdrawals and loans by contractholders and policyholders; • requiring us to post additional collateral for our derivatives or hedging agreements tied to the credit ratings of our holding companies; • requiring us to provide support, or to arrange for third-party support, in the form of collateral, capital contributions or letters of credit under the terms of certain of our reinsurance and other agreements, or otherwise securing our commercial counterparties for the perceived risk of our financial strength; • adversely affecting our ability to maintain reinsurance or obtain new reinsurance or obtain it on reasonable pricing and other terms; • increasing the capital charge associated with affiliated investments within certain of our U.S. life insurance subsidiaries thereby lowering capital and RBC of these subsidiaries and negatively impacting our financial flexibility; • regulators requiring certain of our subsidiaries to maintain additional capital, limiting thereby our financial flexibility and requiring us to raise additional capital; • adversely affecting our ability to raise capital; • increased scrutiny by the GSEs and/or by customers, potentially resulting in a decrease in the amount of new insurance written; • increasing our cost of borrowing and making it more difficult to borrow in the public debt markets or enter into a credit agreement; and • making it more difficult to execute on CareScout initiatives.
The direct or indirect effects of such adverse ratings actions or any future actions could include, but are not limited to: • ceasing and/or reducing new sales of our products or limiting the business opportunities with which we are presented; • adversely affecting our relationships with existing distributors, including the loss of exclusivity under certain agreements with our independent sales intermediaries and distribution partners, or negatively impacting our ability to establish relationships with new distributors; • causing us to lose key distributors that have ratings requirements that we may no longer satisfy (or resulting in our renegotiation of new, less favorable arrangements with those distributors); • requiring us to modify some of our existing products or services to remain competitive, including reducing premiums we charge, or introduce new products or services; • materially increasing the number or amount of policy surrenders, withdrawals and loans by contractholders and policyholders; • requiring us to post additional collateral for our derivatives or hedging agreements tied to the credit ratings of our holding companies; • requiring us to provide support, or to arrange for third-party support, in the form of collateral, capital contributions or letters of credit under the terms of certain of our reinsurance and other agreements, or otherwise securing our commercial counterparties for the perceived risk of our financial strength; • adversely affecting our ability to maintain reinsurance or obtain new reinsurance or obtain it on reasonable pricing and other terms; • increasing the capital charge associated with affiliated investments within certain of our U.S. life insurance subsidiaries thereby lowering capital and RBC of these subsidiaries and negatively impacting our financial flexibility; • regulators requiring certain of our subsidiaries to maintain additional capital, limiting thereby our financial flexibility and requiring us to raise additional capital; • adversely affecting our ability to raise capital; • increased scrutiny by the GSEs and/or by customers, potentially resulting in a decrease in the amount of new insurance written; 42 Table of Contents • increasing our cost of borrowing and making it more difficult to borrow in the public debt markets or enter into a credit agreement; and • making it more difficult to execute on CareScout initiatives.
More specifically, Enact Holdings’ subsidiaries’ ability to continue to meet the PMIERs financial requirements and maintain a prudent amount of capital in excess of those requirements, given the dynamic nature of asset valuations and requirement changes over time, is dependent upon, among other things: (i) Enact Holdings’ ability to complete credit risk transfer transactions on its anticipated terms and timetable, which as applicable, are subject to market conditions, third-party approvals and other actions (including approval by regulators and the GSEs), and other factors that are outside its control; and (ii) Enact Holdings’ ability to contribute its holding company cash or other sources of capital to satisfy the portion of the financial requirements that are not satisfied through credit risk transfer transactions.
More specifically, Enact Holdings’ subsidiaries’ ability to continue to meet the PMIERs financial requirements and maintain a prudent amount of capital in excess of those requirements, given the dynamic nature of asset valuations and requirement changes over time, is dependent upon, among other things: (i) Enact Holdings’ ability to complete credit risk transfer transactions on its anticipated terms and timetable, which as applicable, are subject to market conditions, third-party approvals and other actions (including approval by the GSEs), and other factors that are outside its control; and (ii) Enact Holdings’ ability to contribute its holding company cash or other sources of capital to satisfy the portion of the financial requirements that are not satisfied through credit risk transfer transactions.
At this time, we cannot predict which states, if any, will adopt the amended MGI Model Act or any of its specific provisions, the effect changes will have on the mortgage guaranty insurance market generally, or on our business specifically, the additional costs associated with compliance with any such changes, or any changes to our operations that may be necessary to comply, any of which could have a material adverse effect on our business, results of operations and financial condition.
At this time, we cannot predict which states, if any, will adopt the amended MGI Model Act or any of its specific provisions, the effect changes in the MGI Model Act will have on the mortgage guaranty insurance market generally, or on our business specifically, the additional costs associated with compliance with any such changes, or any changes to our operations that may be necessary to comply, any of which could have a material adverse effect on our business, results of operations and financial condition.
Regulatory and Legal Risks • Changes in accounting and reporting standards issued by the Financial Accounting Standards Board or other standard-setting bodies and insurance regulators could materially adversely affect our business, financial condition and results of operations. • The inability to obtain in-force rate action increases (including increased premiums and associated benefit reductions) in our long-term care insurance business could have a material adverse impact on our business, including our results of operations and financial condition. • Our insurance businesses are extensively regulated and changes in regulation may reduce our profitability and limit our growth. • Litigation and regulatory investigations or other actions are common in the insurance business and may result in financial losses and harm our reputation. • An adverse change in the regulatory requirements on our U.S. life insurance subsidiaries, including risk-based capital requirements, could have a material adverse impact on our business, results of operations and financial condition. 33 Table of Contents • Changes to the role of the GSEs or to the charters or business practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance, could adversely affect our business, financial condition and results of operations. • If Enact is unable to continue to meet the requirements mandated by PMIERs because the GSEs amend them or the GSEs’ interpretation of the financial requirements requires Enact to hold amounts of capital that are higher than planned or otherwise, Enact may not be eligible to write new insurance on loans acquired by the GSEs, which would have a material adverse effect on our business, results of operations and financial condition. • Enact Holdings’ U.S. mortgage insurance subsidiaries are subject to minimum statutory capital requirements, which if not met or waived, would result in restrictions or prohibitions on them doing business and could have a material adverse impact on our business, financial condition and results of operations. • Changes in regulations that adversely affect the mortgage insurance markets in which Enact Holdings operates could affect its operations significantly and could reduce the demand for mortgage insurance. • Our U.S. life insurance subsidiaries may not be able to continue to mitigate the impact of Regulations XXX or AXXX and, therefore, they may incur higher operating costs that could have a material adverse effect on our business, financial condition and results of operations.
Regulatory and Legal Risks • Changes in accounting and reporting standards issued by the Financial Accounting Standards Board or other standard-setting bodies and insurance regulators could materially adversely affect our business, financial condition and results of operations. • The inability to obtain in-force rate action increases (including increased premiums and associated benefit reductions) in our long-term care insurance business could have a material adverse impact on our business, including our results of operations and financial condition. • Our insurance businesses are extensively regulated and changes in regulation may reduce our profitability and limit our growth. • Litigation and regulatory investigations or other actions are common in the insurance business and may result in financial losses and harm our reputation. • An adverse change in the regulatory requirements on our U.S. life insurance subsidiaries, including risk-based capital requirements, could have a material adverse impact on our business, results of operations and financial condition. 32 Table of Contents • Changes to the charters or practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance, could adversely affect our business, financial condition and results of operations. • If Enact is unable to continue to meet the requirements mandated by PMIERs because the GSEs amend them or the GSEs’ interpretation of the financial requirements requires Enact to hold amounts of capital that are higher than planned or otherwise, Enact may not be eligible to write new insurance on loans acquired by the GSEs, which would have a material adverse effect on our business, results of operations and financial condition. • Enact Holdings’ U.S. mortgage insurance subsidiaries are subject to minimum statutory capital requirements, which if not met or waived, would result in restrictions or prohibitions on them doing business and could have a material adverse impact on our business, financial condition and results of operations. • Changes in regulations that adversely affect the mortgage insurance markets in which Enact Holdings operates could affect its operations significantly and could reduce the demand for mortgage insurance. • Our U.S. life insurance subsidiaries may not be able to continue to mitigate the impact of Regulations XXX or AXXX and, therefore, they may incur higher operating costs that could have a material adverse effect on our business, financial condition and results of operations.
Loss experience in Enact Holdings generally results from adverse economic events, such as a borrower’s reduction of income, unemployment, underemployment, divorce, illness, inability to manage credit, or a change in interest rate levels or home values, that reduce a borrower’s willingness or ability to continue to make mortgage payments.
Loss experience in Enact Holdings generally results from adverse economic or other events, such as a borrower’s reduction of income, unemployment, underemployment, divorce, illness, inability to manage credit, or a change in interest rate levels or home values, that reduce a borrower’s willingness or ability to continue to make mortgage payments.
Increases in crediting rates, as well as surrenders and withdrawals, could have a material adverse effect on our financial condition and results of operations, including the requirement to liquidate fixed-income investments in an unrealized loss position to satisfy surrenders or withdrawals.
Increases in crediting rates, as well as surrenders and withdrawals, could have a material adverse effect on our liquidity, financial condition and results of operations, including the requirement to liquidate fixed-income investments in an unrealized loss position to satisfy surrenders or withdrawals.
These administrative powers include, but are not limited to: • licensing companies and agents to transact business; • calculating the value of assets and determining the eligibility of assets to determine compliance with statutory requirements; • mandating certain insurance benefits; • regulating certain premium rates; • reviewing and approving policy forms; • regulating discrimination in pricing, coverage terms and other insurance practices, as well as unfair trade and claims practices, including through the imposition of restrictions on marketing and sales practices, distribution arrangements and payment of inducements; • establishing and revising statutory capital and reserve requirements and solvency standards; • fixing maximum interest rates on insurance policy loans and minimum rates for guaranteed crediting rates on life insurance policies and annuity contracts; • approving premium increases and associated benefit reductions; • evaluating enterprise risk to an insurer; • approving changes in control of insurance companies; • restricting the payment of dividends and other transactions between affiliates; • regulating the types, amounts and valuation of investments; • restricting the types of insurance products that may be offered; and • imposing insurance eligibility criteria.
These administrative powers include, but are not limited to: • licensing companies and agents to transact business; • calculating the value of assets and determining the eligibility of assets to determine compliance with statutory requirements; • mandating certain insurance benefits; • regulating certain premium rates; • reviewing and approving policy forms; 48 Table of Contents • regulating discrimination in pricing, coverage terms and other insurance practices, as well as unfair trade and claims practices, including through the imposition of restrictions on marketing and sales practices, distribution arrangements and payment of inducements; • establishing and revising statutory capital and reserve requirements and solvency standards; • fixing maximum interest rates on insurance policy loans and minimum rates for guaranteed crediting rates on life insurance policies and annuity contracts; • approving premium increases and associated benefit reductions; • evaluating enterprise risk to an insurer; • approving changes in control of insurance companies; • restricting the payment of dividends and other transactions between affiliates; • regulating the types, amounts and valuation of investments; • restricting the types of insurance products that may be offered; and • imposing insurance eligibility criteria.
Other Emerging Risks • Other emerging risks, such as the occurrence of natural or man-made disasters, including geopolitical tensions and war; a public health emergency, including pandemics; climate change; or unknown risks and uncertainties associated with artificial intelligence could materially adversely affect our business, financial condition and results of operations. 34 Table of Contents Risks Relating to Our Ability to Grow Our New Business, Products or Services New lines of business or new products and services, such as those we are pursuing with CareScout, may not be successful or may subject us to additional risks.
Other Emerging Risks • Other emerging risks, such as the occurrence of natural or man-made disasters, including geopolitical tensions and war; a public health emergency, including pandemics; climate change; or unknown risks and uncertainties associated with artificial intelligence could materially adversely affect our business, financial condition and results of operations. 33 Table of Contents Risks Relating to Our Ability to Grow Our New Business, Products or Services New lines of business or new products and services, such as those we are pursuing with CareScout, may not be successful or may subject us to additional risks.
For additional information on GLICNY asset adequacy testing, see note 22 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” If the NYDFS no longer allows GLICNY to incorporate assumptions for future in-force rate actions in its asset adequacy analysis, this would result in a material decrease in GLICNY’s cash flow testing margin and would require GLICNY to further significantly increase its statutory reserves.
For additional information on GLICNY asset adequacy testing, see note 20 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” If the NYDFS no longer allows GLICNY to incorporate assumptions for future in-force rate actions in its asset adequacy analysis, this would result in a material decrease in GLICNY’s cash flow testing margin and would require GLICNY to further significantly increase its statutory reserves.
Insurance and Product-Related Risks • Enact Holdings may be unable to maintain or increase capital in its mortgage insurance subsidiaries in a timely manner, on anticipated terms or at all, including through improved business performance, reinsurance or similar transactions, securities offerings or otherwise, in each case as and when required. • Reinsurance may not be available, affordable or adequate to protect us against losses. • A decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations could result in a decline in Enact Holdings’ revenue. • The amount of mortgage insurance written by Enact Holdings could decline significantly if alternatives to private mortgage insurance are used or lower coverage levels of mortgage insurance are selected. • Enact Holdings’ delegated underwriting program may subject its mortgage insurance subsidiaries to unanticipated claims. • Medical advances, such as genetic research and diagnostic imaging, emerging new technology, including artificial intelligence and related legislation, could materially adversely affect the financial performance of our life insurance, long-term care insurance and annuity businesses.
Insurance and Product-Related Risks • Enact Holdings may be unable to maintain or increase capital in its mortgage insurance subsidiaries in a timely manner, on anticipated terms or at all, including through improved business performance, reinsurance or similar transactions, securities offerings or otherwise, in each case as and when required. • Reinsurance may not be available, affordable or adequate to protect us against losses. • A decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations could result in a decline in Enact Holdings’ revenue. • The amount of mortgage insurance written by Enact Holdings could decline significantly if alternatives to private mortgage insurance are used or lower coverage levels of mortgage insurance are selected. • Enact Holdings’ delegated underwriting and loss mitigation programs may subject its mortgage insurance subsidiaries to unanticipated claims. • Medical advances, such as genetic research and diagnostic imaging, emerging new technology, including artificial intelligence and related legislation, could materially adversely affect the financial performance of our life insurance, long-term care insurance and annuity businesses.
Enact Holdings’ premium rates vary with the perceived risk of a claim and prepayment on the insured loan and are developed using models based on long term historical experience, which takes into account a number of factors including, but not limited to, the loan-to-value ratio, whether the mortgage provides for fixed payments or variable payments, the term of the mortgage, the borrower’s credit history, the borrower’s income and assets, and home price appreciation.
Enact Holdings’ premium rates vary with the perceived risk of a claim and prepayment on the insured loan and are developed using models based on long term historical experience, which take into account a number of factors including, but not limited to, the loan-to-value ratio, whether the mortgage provides for fixed payments or variable payments, the term of the mortgage, the borrower’s credit history, the borrower’s income and assets, and home price appreciation.
Our international operations, predominantly located in Mexico as well as a new subsidiary of Enact Holdings domiciled in Bermuda, are principally regulated by insurance regulatory authorities in the jurisdictions in which they are domiciled.
Our international operations, predominantly located in Mexico as well as a subsidiary of Enact Holdings domiciled in Bermuda, are principally regulated by insurance regulatory authorities in the jurisdictions in which they are domiciled.
In addition, our insurance reserves are sensitive to movements in interest rates as we are required under LDTI to remeasure our liability for future policy benefits and related reinsurance recoverables at the current discount rate, commonly interpreted to be a single-A rated bond rate. This will likely result in volatility to our stockholders’ equity. For example, if the U.S.
In addition, our insurance reserves are sensitive to movements in interest rates as we are required to remeasure our liability for future policy benefits and related reinsurance recoverables at the current discount rate, commonly interpreted to be a single-A rated bond rate. This will likely result in volatility to our stockholders’ equity. For example, if the U.S.
Factors that tend to reduce the length of time our mortgage insurance remains in-force include: • declining interest rates, which may result in the refinancing of the mortgages underlying the insurance policies with new mortgage loans that may not require mortgage insurance or that Enact Holdings does not insure; • customer concentration levels with certain customers that actively market refinancing opportunities to their existing borrowers; 60 Table of Contents • significant appreciation in the value of homes, which causes the unpaid balance of the mortgage to decrease below 80% of the value of the home and enables the borrower to request cancellation of the mortgage insurance; and • changes in mortgage insurance cancellation requirements or procedures of the GSEs or under applicable law.
Factors that tend to reduce the length of time our mortgage insurance remains in-force include: • declining interest rates, which may result in the refinancing of the mortgages underlying the insurance policies with new mortgage loans that may not require mortgage insurance or that Enact Holdings does not insure; • customer concentration levels with certain customers that actively market refinancing opportunities to their existing borrowers; • significant appreciation in the value of homes, which causes the unpaid balance of the mortgage to decrease below 80% of the value of the home and enables the borrower to request cancellation of the mortgage insurance; and • changes in mortgage insurance cancellation requirements or procedures of the GSEs or under applicable law.
Regulation and Agency Qualification Requirements.” The amount of capital that may be required in the future to maintain the Minimum Required Assets, as defined in PMIERs, is dependent upon, among other things: (i) the way PMIERs are applied and interpreted by the GSEs and the FHFA; (ii) the future performance of the U.S. housing market; (iii) Enact Holdings’ generation of earnings, available assets and risk-based required assets, reducing risk in-force and reducing delinquencies as anticipated, and writing anticipated amounts and types of new mortgage insurance business; and (iv) Enact Holdings’ overall financial performance, capital and liquidity levels.
Regulation and Agency Qualification Requirements.” The amount of capital that may be required to maintain the Minimum Required Assets, as defined in PMIERs, is dependent upon, among other things: (i) the way PMIERs are applied and interpreted by the GSEs and the FHFA; (ii) future PMIERs amendments; (iii) the future performance of the U.S. housing market; (iv) Enact Holdings’ generation of earnings, available assets and minimum required assets, reducing risk in-force and reducing delinquencies as anticipated, and writing anticipated amounts and types of new mortgage insurance business; and (v) Enact Holdings’ overall financial performance, capital and liquidity levels.
As one or more of the alternatives described above, or new alternatives that enter the market, are chosen over private mortgage insurance, Enact Holdings’ revenue could be adversely impacted. The loss of business in general or the specific loss of more profitable business in Enact Holdings could have a material adverse effect on our results of operations and financial condition.
If one or more of the alternatives described above, or new alternatives that enter the market, are chosen over private mortgage insurance, Enact Holdings’ revenue could be adversely impacted. The loss of business in general or the specific loss of more profitable business in Enact Holdings could have a material adverse effect on our results of operations and financial condition.
For our deferred annuity products with GMWBs and guaranteed annuitization benefits, actual persistency that is higher than our persistency assumptions could have an adverse impact on profitability because we could be required to make withdrawal or annuitization payments for a longer period of time than the account value would support.
For our deferred annuity products with guaranteed minimum withdrawal benefits and guaranteed annuitization benefits, actual persistency that is higher than our persistency assumptions could have an adverse impact on profitability because we could be required to make withdrawal or annuitization payments for a longer period of time than the account value would support.
In August 2023, the NAIC adopted amendments to the MGI Model Act and is in the process of making corresponding revisions to the Statement of Statutory Accounting Principles No. 58—Mortgage Guaranty Insurance. The revisions to the MGI Model Act are extensive, including with respect to risk concentration limits, capital and reserve requirements, reinsurance, underwriting practices and quality assurance.
In August 2023, the NAIC adopted amendments to the MGI Model Act and is in the process of making conforming revisions to Statement of Statutory Accounting Principles No. 58—Mortgage Guaranty Insurance. The revisions to the MGI Model Act are extensive, including with respect to risk concentration limits, capital and reserve requirements, reinsurance, underwriting practices and quality assurance.
We routinely execute reinsurance and derivative transactions with reinsurers, brokers/dealers, commercial banks, investment banks and other institutional counterparties to mitigate our risks in various circumstances and to hedge various business risks. Many of these transactions expose us to credit risk in the event of default of our counterparty or client or change in collateral value.
We routinely execute reinsurance and derivative transactions with reinsurers, broker-dealers, commercial banks, investment banks and other institutional counterparties to mitigate our risks in various circumstances and to hedge various business risks. Many of these transactions expose us to credit risk in the event of default of our counterparty or client or change in collateral value.
As a result, after discussions with the NYDFS and through the exercise of professional actuarial judgment, GLICNY incorporated in its 2023 and 2022 asset adequacy analysis assumptions for future in-force rate actions for long-term care insurance products to offset the emerging adverse experience for these products.
As a result, after discussions with the NYDFS and through the exercise of professional actuarial judgment, GLICNY incorporated assumptions for future in-force rate actions for long-term care insurance products in its 2024 and 2023 asset adequacy analysis to offset the emerging adverse experience for these products.
For a further discussion of certain current investigations and proceedings in which we are involved, see note 25 in “Part II—Item 8—Financial Statements and Supplementary Data.” These investigations and proceedings could have a material adverse effect on our liquidity, business, financial condition or results of operations.
For a further discussion of certain current investigations and proceedings in which we are involved, see note 22 in “Part II—Item 8—Financial Statements and Supplementary Data.” These investigations and proceedings could have a material adverse effect on our liquidity, business, financial condition or results of operations.
In 2013, the U.S. federal banking regulators confirmed the role of mortgage insurance as a component of prudential bank regulation for high loan-to-value mortgages. More recently, in July 2023, the U.S. Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency proposed for comment the Basel III Endgame rule.
In 2013, the U.S. federal banking regulators confirmed the role of mortgage insurance as a component of prudential bank regulation for high loan-to-value mortgages. In July 2023, the U.S. Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency proposed for comment the Basel III Endgame rule.
These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Cautionary note regarding forward-looking statements” and the risks of our businesses described elsewhere in this Annual Report on Form 10-K for the year ended December 31, 2023. 32 Table of Contents Risk Factor Summary The following summarizes material risks to the Company and is qualified by the full description contained below.
These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Cautionary note regarding forward-looking statements” and the risks of our businesses described elsewhere in this Annual Report on Form 10-K for the year ended December 31, 2024. 31 Table of Contents Risk Factor Summary The following summarizes material risks to the Company and is qualified by the full description contained below.
For additional information on UFLIC reinsurance, see note 9 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” Defaults or other events impacting the value of our fixed maturity securities portfolio may reduce our income.
For additional information on UFLIC reinsurance, see note 7 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” Defaults or other events impacting the value of our fixed maturity securities portfolio may reduce our income.
Federal and state regulations affect the scope of competitor operations, which influences the size of the mortgage insurance market and the intensity of the competition. This competition includes not only other private mortgage insurers, but also U.S. federal and state governmental and quasi-governmental agencies, principally the FHA and the VA, which are governed by federal regulations.
Federal and state regulations affect the scope of competitor operations, which influences the size of the mortgage insurance market and the intensity of the competition. This competition includes not only other private mortgage insurers, but also federal and state governmental and quasi-governmental agencies, principally the FHA and the VA, which are governed by federal regulations.
Among other factors, changes in economic and interest rate risk, socio-demographics, behavioral trends (e.g., location of care and level of benefit use) and medical advances, may also have a material adverse impact on our future claims trends.
Among other factors, changes in economic and interest rate risk, staffing shortages, socio-demographics, behavioral trends (e.g., location of care and level of benefit use) and medical advances, may also have a material adverse impact on our future claims trends.
If one of Enact Holdings’ U.S. mortgage insurance subsidiaries that is writing business in a particular state fails to maintain that state’s required minimum capital level, it would generally be required to 53 Table of Contents immediately stop writing new business in the state until the insurer re-establishes the required level of capital or receives a waiver of the requirement from the state’s insurance regulator, or until it establishes an alternative source of underwriting capacity acceptable to the regulator.
If one of Enact Holdings’ U.S. mortgage insurance subsidiaries that is writing business in a particular state fails to maintain that state’s required minimum capital level, it would generally be required to immediately stop writing new business in the state until the insurer re-establishes the required level of capital or receives a waiver of the requirement from the state’s insurance regulator, or until it establishes an alternative source of underwriting capacity acceptable to the regulator.
Although the terms of our long-term care insurance policies permit us to increase premiums under certain circumstances during the premium-paying period, these increases generally require regulatory approval, which can often take a long time to obtain and may not be obtained in all relevant jurisdictions or for the full amounts requested.
Although the terms of our long-term care insurance policies permit us to increase premiums under certain circumstances during the premium-paying period, these increases generally require regulatory approval, which 47 Table of Contents can often take a long time to obtain and may not be obtained in all relevant jurisdictions or for the full amounts requested.
Enact Holdings depends on the reliability of third-party servicing of the loans that it insures. If a servicer were to experience adverse effects to its business, such servicer could experience delays in its reporting and premium payment requirements.
Enact Holdings depends on the reliability of third-party servicing of the loans that it insures. If a servicer were to experience adverse effects to its business, Enact Holdings could experience delays in the servicer fulfilling its reporting and premium payment requirements.
Fannie Mae, Freddie Mac and many other mortgage investors generally permit a homeowner to ask the loan servicer to cancel the borrower’s obligation to pay for mortgage insurance when the principal amount of the mortgage falls below 80% of the home’s value.
Fannie Mae, Freddie Mac and many other mortgage investors generally permit a borrower to ask the loan servicer to cancel the borrower’s obligation to pay for mortgage insurance when the principal amount of the mortgage falls below 80% of the home’s value.
If the frequency of lapses is higher than our expected reserve assumption, we would experience lower premiums and could experience higher benefit costs. In addition, it may be that healthy policyholders are the ones who lapse (as they can more easily replace coverage), creating adverse selection where less healthy policyholders remain in our portfolio.
If the frequency of lapses is higher than our expected reserve assumption, we would experience 37 Table of Contents lower premiums and could experience higher benefit costs. In addition, it may be that healthy policyholders are the ones who lapse (as they can more easily replace coverage), creating adverse selection where less healthy policyholders remain in our portfolio.
The ultimate amount of the loss suffered depends, in part, on whether the home of a borrower who defaults on a mortgage can be sold for an amount that will cover the unpaid principal balance, interest and the expenses of the sale.
The ultimate amount of the potential loss depends in part on whether the home of a borrower who defaults on a mortgage can be sold for an amount that will cover the unpaid principal balance, interest and the expenses of the sale.
See “—A deterioration in economic conditions, a severe recession or a decline in home prices, all of which could be driven by many potential factors, may adversely affect Enact Holdings’ loss experience.” As seen prior to 2022, declining interest rates historically have increased the rate at which borrowers refinance their existing mortgages, resulting in cancellations of the mortgage insurance covering the refinanced loans.
See “—A deterioration in economic conditions, a severe recession or a decline in home prices, all of which could be driven by many potential factors, may adversely affect our business, profitability and Enact Holdings’ loss experience.” As seen prior to 2022, declining interest rates historically have increased the rate at which borrowers refinance their existing mortgages, resulting in cancellations of the mortgage insurance covering the refinanced loans.
However, we continue to face challenges in our principal life insurance subsidiaries, particularly those subsidiaries that rely heavily on in-force rate actions as a source of earnings and capital.
However, we continue to face challenges in our principal U.S. life insurance subsidiaries, particularly those subsidiaries that rely heavily on in-force rate actions as a source of earnings and capital.
If Enact is unable to continue to meet the requirements mandated by PMIERs or the GSEs, whether because the GSEs amend them or the GSEs’ interpretation of the financial requirements requires Enact to hold amounts of capital that are higher than planned or otherwise, Enact may not be eligible to write new insurance on loans acquired by the GSEs, which would have a material adverse effect on our business, results of operations and financial condition.
If Enact is unable to continue to meet the requirements mandated by PMIERs, or any additional restrictions which may be imposed on Enact by the GSEs, whether because the GSEs amend them or the GSEs’ interpretation of the financial requirements requires Enact to hold amounts of capital that are higher than planned or otherwise, Enact may not be eligible to write new insurance on loans acquired by the GSEs, which would have a material adverse effect on our business, results of operations and financial condition.
The failure of our 50 Table of Contents insurance subsidiaries to meet applicable RBC requirements or minimum statutory capital and surplus requirements could subject our insurance subsidiaries to further examination or corrective action imposed by state insurance regulators, including limitations on their ability to write additional business, or the addition of state regulatory supervision, rehabilitation, seizure or liquidation.
The failure of our insurance subsidiaries to meet applicable RBC requirements or minimum statutory capital and surplus requirements could subject our insurance subsidiaries to further examination or corrective action imposed by state insurance regulators, including limitations on their ability to write additional business, or the addition of state regulatory supervision, rehabilitation, seizure or liquidation.
Furthermore, it may cause regulators to take regulatory or supervisory actions with respect to our U.S. life insurance subsidiaries, thereby limiting the financial flexibility of our holding company, all of which could have a material adverse effect on our results of operations, financial condition and business.
Furthermore, it may cause regulators to take regulatory or supervisory actions 50 Table of Contents with respect to our U.S. life insurance subsidiaries, thereby limiting the financial flexibility of our holding company, all of which could have a material adverse effect on our results of operations, financial condition and business.
Failure, by us or any third-party on which we rely, to comply with these laws, regulations and rules may result in enforcement action, litigation, monetary fines, or other penalties, which could have a material adverse effect on our business, financial condition, and reputation.
Failure, by us or any third-party on which we rely, to comply with these data privacy and data protection laws, regulations and rules may result in enforcement action, litigation, monetary fines or other penalties, which could have a material adverse effect on our business, financial condition and reputation.
During 2023, we continued to experience lower net spreads on our annuity products due to crediting rates outpacing investment returns, coupled with lower annuity account values driven by block runoff.
During 2024, we continued to experience lower net spreads on our annuity products due to crediting rates outpacing investment returns, coupled with lower annuity account values driven by block runoff.
If Enact Holdings concludes its reserves are insufficient to cover actual or expected claim payments as a result of changes in experience, assumptions or otherwise, it would be required to increase its reserves and incur charges in the period in which the determination was made.
If Enact Holdings concludes its reserves are insufficient to cover actual or expected claim payments as a result of changes in experience, 38 Table of Contents assumptions or otherwise, it would be required to increase its reserves and incur charges in the period in which the determination was made.
In the 39 Table of Contents event the premiums Enact Holdings charges do not adequately compensate for the risks and costs associated with the provided coverage, including costs associated with unforeseen higher claims, it may have a material adverse effect on our business, results of operations and financial condition.
In the event the premiums Enact Holdings charges do not adequately compensate for the risks and costs associated with the provided coverage, including costs associated with unforeseen higher claims, it may have a material adverse effect on our business, results of operations and financial condition.
In addition, Enact Holdings may not continue to meet the conditions contained in the GSE letters granting PMIERs credit for reinsurance and other credit risk transfer transactions including, but not limited to, its ability to remain below a statutory risk-to-capital ratio of 18:1.
In addition, Enact Holdings may not continue 52 Table of Contents to meet the conditions contained in the GSE letters granting PMIERs credit for reinsurance and other credit risk transfer transactions including, but not limited to, its ability to remain below a statutory risk-to-capital ratio of 18:1.
Our U.S. life insurance subsidiaries have executed external reinsurance agreements to reinsure sales of some of their older blocks of long-term care insurance products (10% of new business issued from 2003 to 2008; 20% to 30% of new business issued from 2009 to 2011; and 40% of 59 Table of Contents new business issued from 2011 to early 2013).
Our U.S. life insurance subsidiaries have executed external reinsurance agreements to reinsure sales of some of their older blocks of long-term care insurance products (10% of new business issued from 2003 to 2008; 20% to 30% of new business issued from 2009 to 2011; and 40% of new business issued from 2011 to early 2013).
To the extent inflation or other factors causes health care costs to increase more than we anticipated, we will be required to increase our reserves which could negatively impact our profitability.
To the extent inflation or other factors cause health care costs to increase more than we anticipated, we will be required to increase our reserves which could negatively impact our profitability.
The net result of this could cause a deterioration in the risk profile of our portfolio which could lead to payments to our policyholders and contractholders that are materially higher than anticipated. Any of these events could materially adversely affect our business, results of operations and financial condition.
The net result of this could cause a deterioration in the risk profile of our portfolio which could lead to payments to our policyholders and 62 Table of Contents contractholders that are materially higher than anticipated. Any of these events could materially adversely affect our business, results of operations and financial condition.
The application of these regulations and guidelines by insurers involves interpretations and judgments that may differ from those of state insurance 49 Table of Contents departments. Such differences of opinion may result in regulatory, tax or other challenges to the actions we have taken to date.
The application of these regulations and guidelines by insurers involves interpretations and judgments that may differ from those of state insurance departments. Such differences of opinion may result in regulatory, tax or other challenges to the actions we have taken to date.
We face intense competition in our industry for key employees with demonstrated ability, including actuarial, finance, legal, investment, risk, compliance and other professional skills.
We face intense competition in our industry for key employees with demonstrated ability, including actuarial, finance, legal, investment, risk, compliance, information technology and other professional skills.
We retain confidential information in our computer systems, and we rely on commercial technologies to maintain the security of those systems, including computers or mobile devices.
We retain confidential information in our computer systems, and we rely on commercial technologies to maintain the security, integrity and availability of those systems, including computers or mobile devices.
GAAP, our in-force rate action assumptions include significant future premium rate increases and associated benefit reductions resulting from rate actions that have been approved and related legal settlements, as well as rate actions that are anticipated to be approved (including premium rate increases and associated benefit reductions not yet filed) under our in-force rate action plan.
GAAP, our in-force rate action assumptions include significant future premium rate increases and associated benefit reductions resulting from rate actions that have been approved, as well as rate actions that are anticipated to be approved (including premium rate increases and associated benefit reductions not yet filed) under our in-force rate action plan.
Regulation and Agency Qualification Requirements.” In general, dividends are required to be submitted to an insurer’s domiciliary department of insurance for review, and distributions from sources other than unassigned surplus require affirmative approval before being paid.
Regulation and Agency Qualification Requirements.” 40 Table of Contents In general, dividends are required to be submitted to an insurer’s domiciliary department of insurance for review, and distributions from sources other than unassigned surplus require affirmative approval before being paid.
To the extent actual losses are greater than current loss reserves or if loans in default ultimately become delinquent and go to claim more than expected, it could materially adversely impact our results of operations and financial condition and restrict Enact Holdings’ ability to distribute dividends to Genworth Holdings, thereby negatively impacting our liquidity.
To the extent actual losses are greater than current loss reserves or if loans not in default become delinquent and go to claim, it could materially adversely impact our results of operations and financial condition and restrict Enact Holdings’ ability to distribute dividends to Genworth Holdings, thereby negatively impacting our liquidity.
As of December 31, 2023, the RBC of each of our U.S. life insurance subsidiaries exceeded the level of RBC that would require any of them to take or become subject to any corrective action in their respective domiciliary state.
As of December 31, 2024, the RBC ratio of each of our U.S. life insurance subsidiaries exceeded the level that would require any of them to take or become subject to any corrective action in their respective domiciliary state.
Such a mismatch has the potential to increase product pricing causing a decrease in sales to lower risk individuals resulting in higher risk individuals becoming the more likely buyer. In addition, it is possible that regulators may enforce anti-discrimination provisions even 62 Table of Contents when medical information is available that indicates a purchaser is at higher risk.
Such a mismatch has the potential to increase product pricing causing a decrease in sales to lower risk individuals resulting in higher risk individuals becoming the more likely buyer. In addition, it is possible that regulators may enforce anti-discrimination provisions even when medical information is available that indicates a purchaser is at higher risk.
See “—A decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations could result in a decline in our revenue in our mortgage insurance subsidiaries.” See “Part II—Item 7A—Quantitative and Qualitative Disclosures About Market Risk” for additional information about interest rate risk.
See “—A decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations could result in a decline in Enact Holdings’ revenue.” See “Part II—Item 7A—Quantitative and Qualitative Disclosures About Market Risk” for additional information about interest rate risk.
Its top five customers generated 33% of its new insurance written in 2023. An inability to maintain a relationship with one or more of these customers could have an adverse effect on the amount of new business Enact Holdings is able to write and consequently, our financial condition and results of operations.
Its top five customers generated 34% of its new insurance written in 2024. An inability to maintain a relationship with one or more of these customers could have an adverse effect on the amount of new business Enact Holdings is able to write and consequently, our financial condition and results of operations.
Furthermore, the availability of raising additional capital, including through additional minority equity offerings of Enact Holdings or the issuance of equity or debt, could depend on a variety of factors such as market conditions, regulatory considerations, the general availability of credit, the level of activity and availability of reinsurance, our credit ratings and credit capacity and the performance of and outlook for Enact Holdings.
Furthermore, our ability to raise additional capital, including through additional minority equity offerings of Enact Holdings or the issuance of equity or debt, could depend on a variety of factors such as market conditions, regulatory considerations, the general availability of credit, the level of activity and availability of reinsurance, our credit ratings and credit capacity and the performance of and outlook for Enact Holdings.
Enact Holdings’ inability to fund or raise the capital required in the anticipated timeframes and on the anticipated terms could cause a reduction in its business levels or subject it to a variety of regulatory actions, which would have a material adverse impact on our business, results of operations and financial condition.
Enact Holdings’ inability to fund or raise the capital required in the anticipated timeframes and on the anticipated terms, including refinancing its existing debt, could cause a reduction in its business levels or subject it to a variety of regulatory actions, which would have a material adverse impact on our business, results of operations and financial condition.
While the NYDFS generally does not permit in-force rate increases for long-term care insurance to be used in asset adequacy analysis until such increases have been approved, it has allowed GLICNY to incorporate recently filed in-force rate actions in its asset adequacy analysis prior to 37 Table of Contents approval in the past.
While the NYDFS generally does not permit in-force rate increases for long-term care insurance to be used in asset adequacy analysis until such increases have been approved, it has allowed GLICNY to incorporate recently filed in-force rate actions in its asset adequacy analysis prior to approval in the past.
Although we believe this has allowed us to maintain effective hedging relationships with our counterparties, it has added additional strain on liquidity and collateral sufficiency. Furthermore, we may not be able to maintain these current arrangements in the foreseeable future or at all.
Although we believe this has allowed us to maintain effective hedging relationships with our counterparties, it has added additional strain on liquidity and collateral sufficiency. Furthermore, we may not be able to maintain these 43 Table of Contents current arrangements in the foreseeable future or at all.
Our employees, distribution partners and other vendors use portable computers or mobile devices which may contain similar information to that in our computer 57 Table of Contents systems, and these devices have been and can be lost, stolen or damaged, and therefore subject to the same risks as our other computer systems.
Our employees, distribution partners and other vendors use portable computers or mobile devices which may contain similar information to that in our computer systems, and these devices have been and can be lost, stolen or damaged, and therefore subject to the same risks as our other computer systems.
Those competitors may establish pricing terms and business practices that may be influenced by 61 Table of Contents motives such as advancing social housing policy or stabilizing the mortgage lending industry, which may not be consistent with maximizing return on capital or other profitability measures.
Those competitors may establish pricing terms and business practices that may be influenced by motives such as advancing social housing policy or stabilizing the mortgage lending industry, which may not be consistent with maximizing return on capital or other profitability measures.
Valuations use inputs and assumptions that are less observable or require greater estimation, as well as valuation methods that are more complex or require greater estimation, thereby resulting in values that are less certain and may vary significantly from the value at which the investments may be ultimately sold.
Valuations use inputs and assumptions that 39 Table of Contents are less observable or require greater estimation, as well as valuation methods that are more complex or require greater estimation, thereby resulting in values that are less certain and may vary significantly from the value at which the investments may be ultimately sold.
We have experienced both a greater frequency of policyholder lapses and more severe adverse selection after the level premium period, and this experience could continue or worsen.
We have experienced both a greater frequency of policyholder lapses and more severe adverse selection after the level premium period than originally assumed, and this experience could continue or worsen.
Without reliable, consistent third-party servicing, Enact Holdings may be unable to properly recognize and establish reserves on loans when a delinquency exists or occurs but is not reported. In addition, if these servicers fail to limit and mitigate losses when appropriate, Enact Holdings’ losses may unexpectedly increase.
Without reliable, consistent third-party servicing, Enact Holdings may be unable to properly recognize and establish reserves on loans when a delinquency exists or occurs but is not reported. In addition, if these servicers fail to limit and mitigate losses when appropriate, Enact Holdings’ losses may unexpectedly increase. Enact Holdings regularly reviews its reserves and associated assumptions.
While quarterly variations are typically expected to be relatively small compared to the overall size of our liability for future policy benefits of $42.2 billion, at the locked-in discount rate, for our long-term care insurance business as of December 31, 2023, these variations have had, and may in the future have, a material impact on our quarterly results of operations and can result in material losses in our long-term care insurance business.
While quarterly variations are typically expected to be relatively small compared to the overall size of our liability for future policy benefits of $43.0 billion, at the locked-in discount rate, for our long-term care insurance business as of December 31, 2024, these variations have had, and may in the future have, a material impact on our quarterly results of operations and can result in material losses in our long-term care insurance business.
Risks Relating to Economic and Market Conditions • Interest rates and changes in rates, including changes in monetary policy to combat inflation, could materially adversely affect our business and profitability. • A deterioration in economic conditions, a severe recession or a decline in home prices, all of which could be driven by many potential factors, may adversely affect Enact Holdings’ loss experience.
Risks Relating to Economic and Market Conditions • Interest rates and changes in rates could materially adversely affect our business and profitability. • A deterioration in economic conditions, a severe recession or a decline in home prices, all of which could be driven by many potential factors, may adversely affect our business, profitability and Enact Holdings’ loss experience.
Federal Reserve reverses its monetary tightening by reducing interest rates, our insurance reserves would increase and our stockholders’ equity would decrease by amounts that could be material, which may have a material adverse effect on our financial condition.
Federal Reserve continues to reverse its monetary tightening by reducing interest rates, our insurance reserves would increase and our stockholders’ equity would decrease by amounts that could be material, which may have a material adverse effect on our financial condition.
For example, during the second quarter of 2023, we were notified by PBI Research Services (“PBI”), a third-party vendor, that PBI was subject to the widely reported security events involving the MOVEit file transfer system, which PBI uses in the performance of its services (the “MOVEit Cybersecurity Incident”).
For example, during the second quarter of 2023, we were notified by PBI Research Services (“PBI”), one of our third-party vendors, that PBI was subject to the widely reported security events involving the MOVEit file transfer system (the “MOVEit Cybersecurity Incident”), which PBI uses in the performance of its services.
Under PMIERs, the GSEs require maintenance of at least one rating with a rating agency acceptable to the respective GSEs. The current PMIERs do not include a specific ratings requirement with respect to eligibility, but if this were to change in the future, Enact may become subject to a ratings requirement in order to retain its eligibility status under PMIERs.
Under PMIERs, the GSEs require maintenance of at least one rating with a rating agency acceptable to the respective GSE. The current PMIERs do not include a specific eligibility ratings requirement, but if this were to change, Enact would become subject to a ratings requirement in order to retain its eligibility status under PMIERs.
We attempt to mitigate some of these risks 38 Table of Contents through hedging strategies; however, adverse changes in equity market performance or interest rate fluctuations could devalue the expected benefits to contractholders resulting in the need to increase our MRB reserves, which may have a material adverse effect on our financial condition and results of operations.
We attempt to mitigate some of these risks through hedging strategies; however, adverse changes in equity market performance or interest rate fluctuations could devalue the expected benefits to contractholders resulting in the need to increase our market risk benefit reserves, which may have a material adverse effect on our financial condition and results of operations.
In the event that a government-owned or sponsored entity decides to change prices significantly or alter the terms and conditions of its mortgage insurance or other credit enhancement products in furtherance of social or other goals rather than a profit or risk management motive, Enact Holdings may be unable to compete effectively, which could have a material adverse effect on our business, financial condition and results of operations.
In the event that one of these enterprises decides to change prices significantly or alter the terms and conditions of its mortgage insurance or other credit enhancement products in furtherance of social or other goals rather than a profit or risk management motive, Enact Holdings may be unable to compete effectively, which could have a material adverse effect on our business, financial condition and results of operations.
As a result, assumption updates as well as actual versus expected experience on these long-duration products will continue to drive volatility in our long-term care insurance results. Approximately 50% of our cohorts currently have net premium ratios capped at 100%.
As a result, cash flow assumption updates as well as actual variances from expected experience on these long-duration products will continue to drive volatility in our long-term care insurance results. Approximately 50% of our cohorts currently have net premium ratios capped at 100%.
The adoption of any GSE reform, whether through legislation or administrative action, could impact the current role of private mortgage insurance as a credit enhancement, including its reduction or elimination, which would have an adverse effect on our business, revenue, results of operations and financial condition.
The adoption of any GSE reform, whether through legislation or administrative action, could impact the current role of private mortgage insurance as credit enhancement, which would have an adverse effect on our business, revenue, results of operations and financial condition.
The failure of these systems for any reason could cause significant interruptions to our operations, which could result in a material adverse effect on our business, financial condition or results of operations. Technology continues to expand and plays an ever-increasing role in our business.
The failure of these systems for any 56 Table of Contents reason could cause significant interruptions to our operations, which could result in a material adverse effect on our business, financial condition or results of operations. Technology continues to evolve and plays an ever-increasing role in our business.
A deterioration in economic conditions, a severe recession or a decline in home prices, all of which could be driven by many potential factors, may adversely affect Enact Holdings’ loss experience.
A deterioration in economic conditions, a severe recession or a decline in home prices, all of which could be driven by many potential factors, may adversely affect our business, profitability and Enact Holdings’ loss experience.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIn connection with the MOVEit Cybersecurity Incident, the risk committee was immediately notified by management and regularly briefed on the matter, and worked with management, including Genworth’s CISO and Chief Risk Officer (“CRO”), to assess and manage the risk and implement the Company’s response to the incident.
Biggest changeIn this capacity, the risk committee oversees the Company’s processes for identifying, assessing and managing technology and cybersecurity risk, including a risk-based escalation process, which requires that the risk committee be notified by management and, as necessary, receive regular briefings on the matter, and work with management, including Genworth’s CISO and Chief Risk Officer (“CRO”), to assess and manage the risk and implement the Company’s response to the incident, as appropriate.
As part of our risk management, we have implemented a Data Security and Cybersecurity Program (the “DSCP”) which sets policy expectations, ensures broad coverage over information technology risks, integrates the Information Security and Information Technology Risk Management Framework into our broader risk management systems, establishes clear roles and governance, and aligns control expectations to the National Institute of Standards and Technology (“NIST”).
As part of our overall risk management, we have implemented a Data Security and Cybersecurity Program (the “DSCP”) which sets policy expectations, ensures broad coverage over information technology risks, integrates the Information Security and Information Technology Risk Management Framework into our broader risk management systems, establishes clear roles and governance, and aligns control expectations to the National Institute of Standards and Technology (“NIST”).
We also carry insurance that provides protection against the potential losses arising from a cybersecurity incident. Additionally, we have procedures set forth in the DSCP for reporting and responding to potential security incidents as well as determining applicable disclosure requirements, including timely incident reporting.
We also carry insurance that provides protection against certain losses arising from a cybersecurity incident. Additionally, we have procedures set forth in the DSCP for reporting and responding to potential cybersecurity incidents as well as determining applicable disclosure requirements, including timely incident reporting.
For additional information regarding the risks associated with these matters, see “Item 1A—Risk Factors.” Risk Management Genworth’s risk management framework recognizes the significant operational risk, including risk of losses, from cyber incidents and the importance of a strong cybersecurity program for effective risk management.
For additional information regarding the risks associated with these matters, see “Item 1A—Risk Factors.” Risk Management and Strategy Genworth’s risk management framework recognizes the significant operational risk, including risk of losses, from cybersecurity incidents and the importance of a strong cybersecurity program for effective risk management.
In his 23 years of experience, he has held roles in information technology infrastructure administration, information technology infrastructure, security consulting and security administration. He received a Bachelor of Science Degree in Business Administration from Regent University and is a Certified Information Systems Security Professional (CISSP).
In his 24 years of experience, he has held roles in information technology infrastructure administration, information technology infrastructure, security consulting and security administration. He received a Bachelor of Science Degree in Business Administration from Regent University and is a Certified Information Systems Security Professional (CISSP).
Under the DSCP, we have processes for identifying, assessing and managing technology and cybersecurity risk. The DSCP employs various controls and policies to secure our operations and information, which include monitoring, reporting, managing and remediating cybersecurity threats.
Under the DSCP, we have processes for identifying, assessing, escalating and managing technology and cybersecurity risk. The DSCP employs various controls and policies to secure our operations and information, which include monitoring, reporting, managing and remediating cybersecurity threats and incidents.
We believe that the MOVEit Cybersecurity Incident has not had any impact on any of our information systems, including our financial systems, and that there has not been any material interruption of our business operations.
We do not believe the MOVEit Cybersecurity Incident has had any impact on any of our information systems, including our financial systems, and there has not been any material interruption of our business operations.
Approximately 2.5 to 2.7 million of our policyholders’ or other customers’ personal information, including social security numbers, was exposed to and obtained by the threat actor as a result of the MOVEit Cybersecurity Incident.
We determined that approximately 2.5 million to 2.7 million of our policyholders’ or other customers’ personal information, including social security numbers, was exposed to and obtained by the threat actor as a result of the MOVEit Cybersecurity Incident.
See “Item 1A—Risk Factors—Our computer systems and those of our third-party service providers have in the past and may in the future fail or be compromised, including through cybersecurity breaches; we may experience issues from new and complex information technology methodologies such as artificial intelligence; and unanticipated problems could materially adversely impact our disaster recovery systems and business continuity plans, any of which could damage our reputation, impair our ability to conduct business effectively, result in enforcement action or litigation, and materially adversely affect our business, financial condition and results of operations.” 64 Table of Contents Governance Our Board of Directors recognizes the importance of maintaining the privacy and security of customer information, as well as the availability of our systems, and consequently dedicates meaningful time and attention to oversight of cybersecurity risk.
See “Item 1A—Risk Factors—Our computer systems and those of our third-party service providers have in the past failed or been compromised and may in the future fail or be 6 4 Table of Contents compromised, including through cybersecurity breaches; we may experience issues from new and complex information technology methodologies such as artificial intelligence; and unanticipated problems could materially adversely impact our disaster recovery systems and business continuity plans, any of which could expose confidential information such as personal information of our customers or employees, damage our reputation, impair our ability to conduct business effectively, result in enforcement action or litigation, and materially adversely affect our business, financial condition and results of operations.” Governance Our Board of Directors recognizes the importance of maintaining the privacy and security of customer information, as well as the availability and integrity of our systems, and consequently dedicates meaningful time and attention to the oversight of cybersecurity risk.
Additionally, the CISO and CRO follow a risk-based escalation process to notify the risk committee outside of the regular reporting cycle when they identify potential substantive cybersecurity risks or issues. Genworth’s CISO is an information technology and security professional with 23 years of experience and 11 years of service at Genworth.
Additionally, the CISO and CRO follow a risk-based escalation process to notify the risk committee outside of the regular reporting cycle when they identify actual or potential substantive cybersecurity risks or issues. Genworth’s CISO is an information technology and security professional with 24 years of experience and 12 years of service at Genworth.
Through a cross-functional team, we assess and mitigate risks associated with our third-party providers and have processes in place to regularly monitor and evaluate cybersecurity risks and threats associated with the use of third-party providers.
Through a cross-functional team, we assess and mitigate risks associated with our third-party providers and have processes in place to regularly monitor and evaluate cybersecurity risks, threats and incidents associated with the use of third-party providers, as well as monitoring rights, as appropriate.
In light of these risks, our Board of Directors is actively engaged in the oversight of the Company’s information technology, which includes periodic briefings on cybersecurity threats and participation in cybersecurity preparedness exercises. Furthermore, under its charter, the Board’s risk committee has primary responsibility for cybersecurity oversight.
In light of these risks, our Board of Directors is actively engaged in the oversight of the Company’s information technology, which includes periodic briefings on cybersecurity threats and participation in cybersecurity preparedness exercises. Furthermore, under its charter, the Board’s risk committee has primary responsibility for information technology risk oversight, including as it relates to cybersecurity and data security matters.
Item 1C. Cybersecurity We have identified information technology and cybersecurity risk as some of the most significant risk types to our business. Related to these identified risk types, we have classified our top risks and report these risks to 63 Table of Contents both senior management and the risk committee of Genworth Financial’s Board of Directors.
Item 1C. Cybersecurity We have identified information technology and cybersecurity risk as some of the most significant risk types to our business. Related to these identified risk types, we have classified our top risks and report them to both senior management and the risk committee of Genworth Financial’s Board of Directors, which in turn reports to the Board of Directors.
While we are continuing to measure the impact, including certain remediation expenses and other potential liabilities, we do not currently believe this incident or other known risks from cybersecurity threats are reasonably likely to have a material adverse effect on our business, results of operations or financial condition.
While we are continuing to measure the impact of remediation expenses and other potential liabilities, neither this incident, nor other known cybersecurity threats, has had or is reasonably likely to have a material adverse effect on our business strategy, results of operations or financial condition.
Our information security team, overseen by our Chief Information Security Officer (“CISO”), conducts annual information security awareness training for employees involved in our systems and processes that handle customer data. We have conducted cybersecurity awareness training with management, including a tabletop exercise to simulate a response to a cybersecurity incident, and used these findings to improve our processes and technologies.
Our information security team, overseen by our Chief Information Security Officer (“CISO”), conducts annual information security awareness training for employees involved in our systems and processes that handle customer data. We also conduct periodic cybersecurity awareness training with management and the Board of Directors, including cybersecurity preparedness exercises.
The MOVEit Cybersecurity Incident resulted in the unauthorized acquisition of data by a third party from PBI as well as several organizations and governmental agencies. After being notified of the security event, we, together with PBI, promptly launched an investigation to determine whether and to what extent personal information had been unlawfully accessed.
For example, as disclosed in our Form 8-K filed on June 22, 2023 and our Annual Report on Form 10-K filed on February 29, 2024, after being notified of the MOVEit Cybersecurity Incident, we, together with PBI, promptly launched an investigation to determine whether and to what extent personal information had been unlawfully accessed as a result of that incident.
Removed
For example, as disclosed in our Form 8-K filed on June 22, 2023, we were notified by PBI, a third-party vendor, that PBI was subject to the widely reported security events involving the MOVEit file transfer system, which PBI uses in the performance of its services.
Removed
In this capacity, the risk committee oversees the Company’s processes for identifying, assessing and managing technology and cybersecurity risk.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties Genworth owns a campus facility in Richmond, Virginia, which previously served as its headquarters , consisting of approximately 450,000 square feet in four buildings, as well as one facility in Lynchburg, Virginia with approximately 210,000 square feet.
Biggest changeItem 2. Properties Genworth leases a newly renovated 174,000 square foot facility for use as its headquarters in Richmond, Virginia and owns one facility in Lynchburg, Virginia with approximately 210,000 square feet, both of which are used by our Long-Term Care Insurance and Life and Annuities segments.
In addition, Genworth leases 11,000 square feet in Lynchburg, Virginia, and another 61,000 square feet of office space in four locations throughout the United States. One of Genworth’s international subsidiaries leases office space in Mexico.
In addition, Genworth leases 11,000 square feet in Lynchburg, Virginia, and another 170,000 square feet of office space in five locations throughout the United States. One of Genworth’s international subsidiaries leases approximately 4,000 square feet of office space in Mexico.
Enact Holdings leases its headquarters facility in Raleigh, North Carolina, which consists of approximately 130,000 square feet, and also leases one other office space of approximately 2,000 square feet in Washington, D.C. Genworth has entered into a contract to sell its owned campus facility in Richmond, Virginia.
Enact Holdings leases its headquarters facility in Raleigh, North Carolina, which consists of approximately 130,000 square feet, and leases one other office space of approximately 2,000 square feet in Washington, D.C. 6 5 Table of Contents Genworth also owns a campus facility in Richmond, Virginia, which previously served as its headquarters, consisting of approximately 450,000 square feet in four buildings.
Removed
Genworth has leased and is currently renovating a 174,000 square foot facility in Richmond, Virginia for use as its new headquarters office. Genworth has leased 89,000 square feet of office space in Richmond, Virginia to use as its interim headquarters until the new space is ready.
Added
Genworth has entered into a contract to sell this facility. As of December 31, 2024, the asset group was classified as held-for-sale and was included within other assets in our consolidated balance sheet.
Removed
The contract purchaser is conducting its due diligence as permitted under the contract. 65 Table of Contents

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following graph compares the cumulative total stockholder return on our Class A Common Stock with the cumulative total stockholder return on the S&P 500 Stock Index, S&P 500 Insurance Index, S&P SmallCap 600 Index and S&P SmallCap 600 Insurance Index. 2018 2019 2020 2021 2022 2023 Genworth Financial, Inc. $ 100.00 $ 94.42 $ 81.12 $ 86.91 $ 113.52 $ 143.35 S&P 500 ® $ 100.00 $ 131.49 $ 155.68 $ 200.37 $ 164.08 $ 207.21 S&P 500 Insurance Index $ 100.00 $ 129.38 $ 128.81 $ 170.19 $ 187.42 $ 204.78 S&P SmallCap 600 Index $ 100.00 $ 122.78 $ 136.64 $ 173.29 $ 145.39 $ 168.73 S&P SmallCap 600 Insurance Index $ 100.00 $ 114.89 $ 117.89 $ 123.81 $ 103.30 $ 112.17 67 Table of Contents Dividends In November 2008, Genworth Financial’s Board of Directors suspended the payment of dividends to its shareholders indefinitely.
Biggest changeThe following graph compares the cumulative total stockholder return on our Common Stock with the cumulative total stockholder return on the S&P 500 Stock Index, S&P 500 Insurance Index, S&P SmallCap 600 Index and S&P SmallCap 600 Insurance Index. 2019 2020 2021 2022 2023 2024 Genworth Financial, Inc. $ 100.00 $ 85.91 $ 92.05 $ 120.23 $ 151.82 $ 158.86 S&P 500 ® $ 100.00 $ 118.40 $ 152.39 $ 124.79 $ 157.59 $ 197.02 S&P 500 Insurance Index $ 100.00 $ 99.56 $ 131.54 $ 144.86 $ 158.28 $ 200.73 S&P SmallCap 600 Index $ 100.00 $ 111.29 $ 141.13 $ 118.41 $ 137.42 $ 149.37 S&P SmallCap 600 Insurance Index $ 100.00 $ 102.61 $ 107.76 $ 89.91 $ 97.63 $ 125.76 67 Table of Contents Dividends In November 2008, Genworth Financial’s Board of Directors suspended the payment of dividends to its shareholders indefinitely.
These factors will include, in addition to any other factors that may arise in the future, the receipt of dividends and/or other returns of capital from Enact Holdings, Genworth’s operating results and financial condition, the capital requirements of our subsidiaries, legal requirements, regulatory constraints, debt obligations of Genworth Holdings and Enact Holdings, our credit and financial strength ratings, the capital needs of our subsidiaries for future growth and other factors Genworth Financial’s Board of Directors deems relevant.
These factors will include, in addition to any other factors that may arise in the future, the receipt of dividends and/or other returns of capital from Enact Holdings, Genworth’s operating results and financial condition, legal requirements, regulatory constraints, debt obligations of Genworth Holdings and Enact Holdings, our credit and financial strength ratings, the capital requirements of our subsidiaries, including for future growth, and other factors Genworth Financial’s Board of Directors deems relevant.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market for Common Stock Our Class A Common Stock is listed on the New York Stock Exchange under the symbol “GNW.” As of February 15, 2024, we had 272 holders of record of our Class A Common Stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market for Common Stock Our Common Stock is listed on the New York Stock Exchange under the symbol “GNW.” As of February 20, 2025, we had 273 holders of record of our Common Stock.
Issuer Purchases of Common Stock The following table sets forth information regarding Genworth Financial’s share repurchases during the three months ended December 31, 2023: (Dollar amounts in millions, except per share amounts) Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced program Approximate dollar amount of shares that may yet be purchased under the program (1) October 1, 2023 through October 31, 2023 1,717,825 $ 5.82 1,717,825 $ 366 November 1, 2023 through November 30, 2023 2,581,077 $ 5.81 2,581,077 $ 351 December 1, 2023 through December 31, 2023 1,600,446 $ 6.14 1,600,446 $ 341 Total 5,899,348 5,899,348 (1) On May 2, 2022, Genworth Financial’s Board of Directors authorized a share repurchase program under which Genworth Financial could repurchase up to $350 million of its outstanding Class A common stock.
Issuer Purchases of Common Stock The following table sets forth information regarding Genworth Financial’s share repurchases during the three months ended December 31, 2024: (Dollar amounts in millions, except per share amounts) Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced program Approximate dollar amount of shares that may yet be purchased under the program (1) October 1, 2024 through October 31, 2024 1,401,753 $ 6.84 1,401,753 $ 197 November 1, 2024 through November 30, 2024 2,461,584 $ 7.34 2,461,584 $ 179 December 1, 2024 through December 31, 2024 3,151,349 $ 7.52 3,151,349 $ 155 Total 7,014,686 7,014,686 (1) On May 2, 2022, Genworth Financial’s Board of Directors authorized a share repurchase program under which Genworth Financial could repurchase up to $350 million of its outstanding common stock.
For additional information on the share repurchase program, see “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”
For additional information on the share repurchase program, including certain repurchases made subsequent to periods provided in the chart above, see “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” Item 6. Reserved

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeIn the future, equity and interest rate market performance and volatility could result in additional gains or losses in these products although associated hedging activities are expected to partially mitigate these impacts. 99 Table of Contents Segment results of operations The following table sets forth the results of operations relating to our Life and Annuities segment for the periods indicated: Years ended December 31, Increase (decrease) and percentage change (Amounts in millions) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 Revenues: Premiums $ 207 $ 234 $ (136 ) $ (27 ) (12 )% $ 370 NM (1) Net investment income 1,042 1,083 1,195 (41 ) (4 )% (112 ) (9 )% Net investment gains (losses) (49 ) (4 ) 74 (45 ) NM (1) (78 ) (105 )% Policy fees and other income 646 669 718 (23 ) (3 )% (49 ) (7 )% Total revenues 1,846 1,982 1,851 (136 ) (7 )% 131 7 % Benefits and expenses: Benefits and other changes in policy reserves 963 620 648 343 55 % (28 ) (4 )% Liability remeasurement (gains) losses 266 27 174 239 NM (1) (147 ) (84 )% Changes in fair value of market risk benefits and associated hedges (12 ) (104 ) (160 ) 92 88 % 56 35 % Interest credited 503 504 511 (1 ) — % (7 ) (1 )% Acquisition and operating expenses, net of deferrals 213 604 233 (391 ) (65 )% 371 159 % Amortization of deferred acquisition costs and intangibles 181 240 291 (59 ) (25 )% (51 ) (18 )% Total benefits and expenses 2,114 1,891 1,697 223 12 % 194 11 % Income (loss) from continuing operations before income taxes (268 ) 91 154 (359 ) NM (1) (63 ) (41 )% Provision (benefit) for income taxes (59 ) 16 30 (75 ) NM (1) (14 ) (47 )% Income (loss) from continuing operations (209 ) 75 124 (284 ) NM (1) (49 ) (40 )% Adjustments to income (loss) from continuing operations: Net investment (gains) losses 49 4 (74 ) 45 NM (1) 78 105 % Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) (22 ) (142 ) (210 ) 120 85 % 68 32 % Expenses related to restructuring — (1 ) 5 1 100 % (6 ) (120 )% Pension plan termination costs — 8 — (8 ) (100 )% 8 NM (1) Taxes on adjustments (6 ) 28 59 (34 ) (121 )% (31 ) (53 )% Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders $ (188 ) $ (28 ) $ (96 ) $ (160 ) NM (1) $ 68 71 % (1) We define “NM” as not meaningful for increases or decreases greater than 200%.
Biggest changeIn the fourth quarter of 2024, our variable annuity products had an unfavorable pre-tax impact of $6 million from an update to our lapse assumptions. 94 Table of Contents Segment results of operations The following table sets forth the results of operations relating to our Life and Annuities segment for the periods indicated: Increase (decrease) and Years ended December 31, percentage change (Amounts in millions) 2024 2023 2022 2024 vs. 2023 Revenues: Premiums $ 179 $ 207 $ 234 $ (28 ) (14 )% Net investment income 959 1,042 1,083 (83 ) (8 )% Net investment gains (losses) (20 ) (49 ) (4 ) 29 59 % Policy fees and other income 638 646 669 (8 ) (1 )% Total revenues 1,756 1,846 1,982 (90 ) (5 )% Benefits and expenses: Benefits and other changes in policy reserves 962 963 620 (1 ) — % Liability remeasurement (gains) losses (19 ) 266 27 (285 ) (107 )% Changes in fair value of market risk benefits and associated hedges (13 ) (12 ) (104 ) (1 ) (8 )% Interest credited 453 503 504 (50 ) (10 )% Acquisition and operating expenses, net of deferrals 235 213 604 22 10 % Amortization of deferred acquisition costs and intangibles 166 181 240 (15 ) (8 )% Total benefits and expenses 1,784 2,114 1,891 (330 ) (16 )% Income (loss) from continuing operations before income taxes (28 ) (268 ) 91 240 90 % Provision (benefit) for income taxes (8 ) (59 ) 16 51 86 % Income (loss) from continuing operations (20 ) (209 ) 75 189 90 % Adjustments to income (loss) from continuing operations: Net investment (gains) losses 20 49 4 (29 ) (59 )% Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (1) (43 ) (22 ) (142 ) (21 ) (95 )% Expenses related to restructuring — — (1 ) — — % Pension plan termination costs — — 8 — — % Taxes on adjustments 5 (6 ) 28 11 183 % Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders $ (38 ) $ (188 ) $ (28 ) $ 150 80 % (1) For the years ended December 31, 2024, 2023 and 2022, changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(30) million, $(10) million and $(38) million, respectively. 95 Table of Contents The following table sets forth adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for the products included in our Life and Annuities segment for the periods indicated: Increase (decrease) and Years ended December 31, percentage change (Amounts in millions) 2024 2023 2022 2024 vs. 2023 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: Life insurance $ (94 ) $ (275 ) $ (111 ) $ 181 66 % Fixed annuities 30 50 62 (20 ) (40 )% Variable annuities 26 37 21 (11 ) (30 )% Total adjusted operating loss available to Genworth Financial, Inc.’s common stockholders $ (38 ) $ (188 ) $ (28 ) $ 150 80 % 2024 compared to 2023 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders • The adjusted operating loss in our life insurance products decreased primarily from liability remeasurement gains in 2024 compared to losses in 2023, partially offset by lower premiums and a less favorable change in reserves in 2024 in our term life insurance products related to block runoff. • Adjusted operating income in our fixed annuity products decreased mainly from unfavorable assumption updates of $9 million primarily related to our fixed indexed annuity lapse assumptions in 2024, as well as lower net spreads primarily related to block runoff. • Adjusted operating income in our variable annuity products decreased largely from an unfavorable lapse assumption update of $5 million in 2024 compared to favorable assumption updates in 2023.
We remeasure our liability for future policy benefits and related reinsurance recoverables at the single-A bond rate each quarter. As a result, our reported insurance liabilities are sensitive to movements in interest rates, which will likely result in continued volatility to our reserve balances and equity.
We remeasure our liability for future policy benefits and the related reinsurance recoverables at the single-A bond rate each quarter. As a result, our reported insurance liabilities are sensitive to movements in interest rates, which will likely result in continued volatility to our reserve balances and equity.
Cash flow assumptions, as applicable, used to estimate the liability for future policy benefits include health care experience (including type of care and cost of care), policyholder persistency or lapses (i.e., the probability that a policy or contract will remain in-force from one period to the next), insured mortality (i.e., life expectancy or longevity), insured morbidity (i.e., frequency and severity of claim, including claim termination rates and benefit utilization rates), estimates of future in-force rate actions, which include premium rate increases and benefit reductions associated with our long-term care insurance products.
Cash flow assumptions, as applicable, used to estimate the liability for future policy benefits include health care experience (including type of care and cost of care), policyholder persistency or lapses (i.e., the probability that a policy or contract will remain in-force from one period to the next), insured mortality (i.e., life expectancy or longevity), insured morbidity (i.e., frequency and severity of claim, including claim termination rates and benefit utilization rates), and estimates of future in-force rate actions, which include premium rate increases and benefit reductions associated with our long-term care insurance products.
We consider new insurance written to be a measure of our Enact segment’s operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of revenues or profitability during that period. Management also regularly monitors and reports insurance in-force and risk in-force for our Enact segment.
We consider new insurance written to be a measure of our Enact segment’s operating performance because it represents a measure of new sales of mortgage insurance policies during a specified period, rather than a measure of revenues or profitability during that period. Management also regularly monitors and reports insurance in-force and risk in-force for our Enact segment.
We use hedging strategies as well as liquidity planning and asset-liability management to help mitigate the impacts. In addition, we have used reinsurance to help mitigate volatility in our variable annuity results. Equity market volatility and interest rate movements have caused fluctuations in the results of our variable annuity products and regulatory capital requirements.
We use hedging strategies as well as liquidity planning and asset-liability management to help mitigate these impacts. In addition, we have used reinsurance to help mitigate volatility in our variable annuity results. Equity market volatility and interest rate movements have caused fluctuations in the results of our variable annuity products and regulatory capital requirements.
Valuation of fixed maturity securities. Our portfolio of fixed maturity securities comprises primarily investment grade securities, which are carried at fair value. The methodologies, estimates and assumptions used in valuing our fixed maturity securities evolve over time and are subject to different interpretations, all of which can lead to materially different estimates of fair value.
Our portfolio of fixed maturity securities comprises primarily investment grade securities, which are carried at fair value. The methodologies, estimates and assumptions used in valuing our fixed maturity securities evolve over time and are subject to different interpretations, all of which can lead to materially different estimates of fair value.
For a discussion of potential impacts of assumption updates and actual versus expected experience on our results of operations, see “Item 1A—Risk Factors—We may be required to increase our reserves as a result of deviations from our estimates and actuarial assumptions or other reasons, which could have a material adverse effect on our business, results of operations and financial condition.” The financial condition of our long-term care insurance business is also impacted by interest rates.
For a discussion of potential impacts of assumption updates and actual variances from expected experience on our results of operations, see “Item 1A—Risk Factors—We may be required to increase our reserves as a result of deviations from our estimates and actuarial assumptions or other reasons, which could have a material adverse effect on our business, results of operations and financial condition.” The financial condition of our long-term care insurance business is also impacted by interest rates.
Management regularly monitors and reports on in-force rate actions, including state filing approvals; impacted in-force premiums; weighted-average percentage rate increases approved; and gross incremental premiums approved in our Long-Term Care Insurance segment.
Management regularly monitors and reports in-force rate actions, including state filing approvals; impacted in-force premiums; weighted-average percentage rate increases approved; and gross incremental premiums approved in our Long-Term Care Insurance segment.
Net investment gains (losses) consist primarily of realized gains and losses from the sale of our investments, credit losses, unrealized and realized gains and losses from our equity securities, limited partnership investments and derivative instruments.
Net investment gains (losses) consist primarily of realized gains and losses from the sale of our investments, credit losses, and unrealized gains and losses on equity securities, limited partnership investments and derivative instruments.
Future dividends will be subject to quarterly review and approval by Enact Holdings’ board of directors and Genworth Financial and will also be dependent on a variety of economic, market and business conditions, among other considerations. Insurance laws and regulations regulate the payment of dividends and other distributions to Genworth Financial and Genworth Holdings by their insurance subsidiaries.
Future dividends will be subject to quarterly review and approval by Enact Holdings’ board of directors and Genworth Financial and will also be dependent on a variety of economic, market and business conditions, among other considerations. In addition, insurance laws and regulations regulate the payment of dividends and other distributions to Genworth Financial and Genworth Holdings by their insurance subsidiaries.
Variable annuities Results of our variable annuity products are affected primarily by investment performance, interest rate levels, the slope of the interest rate yield curve, net interest spreads, equity market conditions, mortality, surrenders and scheduled maturities. In addition, the results of our variable annuity products can significantly impact our regulatory capital requirements, distributable earnings and liquidity.
Variable annuities Results of our variable annuity products are affected primarily by investment performance, interest rate levels, the slope of the interest rate yield curve, net interest spreads, equity market conditions, mortality, surrenders and scheduled maturities. In addition, the results of our variable annuity products can significantly impact our regulatory capital requirements and liquidity.
For more information on our tax obligations, refer to note 18 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data.” Management’s focus is predominantly on Genworth Holdings’ liquidity given it is the issuer of our outstanding public debt.
For more information on our tax obligations, refer to note 16 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data.” Management’s focus is predominantly on Genworth Holdings’ liquidity given it is the issuer of our outstanding public debt.
The primary uses of funds at Genworth Financial and Genworth Holdings include payments of principal, interest and other expenses on borrowings or other obligations, payment of holding company general operating expenses (including employee benefits and taxes), payments under guarantees (including guarantees of certain subsidiary obligations), payments to subsidiaries (and, in the case of Genworth Holdings, to Genworth Financial) under tax sharing agreements, contributions to subsidiaries, repurchases of debt securities, repurchases of Genworth Financial’s common stock and, in the case of Genworth Holdings, loans, dividends or other distributions to Genworth Financial.
The primary uses of funds at Genworth Financial and Genworth Holdings include payments of principal, interest and other expenses on borrowings or other obligations, payment of holding company general operating expenses (including employee benefits and taxes), payments under guarantees (including guarantees of certain subsidiary obligations), payments to subsidiaries (or, in the case of Genworth Holdings, to Genworth Financial) under tax sharing agreements, investments in CareScout, repurchases of debt securities, repurchases of Genworth Financial’s common stock and, in the case of Genworth Holdings, loans, dividends or other distributions to Genworth Financial.
See “Cautionary Note Regarding Forward-looking Statements.” For a detailed discussion of our significant accounting policies, see note 2 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data.” 113 Table of Contents The sensitivities in the tables below are changes that we consider to be reasonably possible given historical changes in market conditions and our experience with these products.
See “Cautionary Note Regarding Forward-looking Statements.” For a detailed discussion of our significant accounting policies, see note 2 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data.” The sensitivities in the tables below are changes that we consider to be reasonably possible given historical changes in market conditions and our experience with these products.
See “Item 7A—Quantitative and Qualitative Disclosures About Market Risk—Sensitivity Analysis—Interest Rate Risk” for the impact of hypothetical changes in interest rates on our investments portfolio. Our valuation techniques maximize the use of observable inputs.
See “Item 7A—Quantitative and Qualitative Disclosures About Market Risk—Sensitivity Analysis—Interest Rate Risk” for the impact of hypothetical changes in interest rates on our investment portfolio. Our valuation techniques maximize the use of observable inputs.
Based upon fair value, public fixed maturity securities represented 69% and 68%, respectively, of total fixed maturity securities as of December 31, 2023 and 2022. Private fixed maturity securities represented 31% and 32%, respectively, of total fixed maturity securities as of December 31, 2023 and 2022. We diversify our corporate securities by industry and issuer.
Based upon fair value, public fixed maturity securities represented 68% and 69%, respectively, of total fixed maturity securities as of December 31, 2024 and 2023. Private fixed maturity securities represented 32% and 31%, respectively, of total fixed maturity securities as of December 31, 2024 and 2023. We diversify our corporate securities by industry and issuer.
When Enact receives notice of a delinquency, it uses its proprietary model to determine whether a delinquent loan is a candidate for a modification. When the model identifies such a candidate, Enact’s loan workout 89 Table of Contents specialists prioritize cases for loss mitigation based upon the likelihood that the loan will result in a claim.
When Enact receives notice of a delinquency, it uses its proprietary model to determine whether a delinquent loan is a candidate for a modification. When the model identifies such a candidate, Enact’s loan workout specialists prioritize cases for loss mitigation based upon the likelihood that the loan will result in a claim.
As a result, variances between actual experience and our expectations for benefit reductions and settlement payments will be reflected in liability remeasurement (gains) losses in our operating results on a quarterly basis.
As a result, variances between actual experience and our expectations for benefit reductions will be reflected in liability remeasurement (gains) losses in our operating results on a quarterly basis.
See note 21 to our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data” for additional information related to fair value. 110 Table of Contents The following table presents our public, private and total fixed maturity securities by the Nationally Recognized Statistical Rating Organizations (“NRSRO”) designations and/or equivalent ratings, as well as the percentage, based upon fair value that each designation comprises.
See note 19 to our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data” for additional information related to fair value. 102 Table of Contents The following table presents our public, private and total fixed maturity securities by the Nationally Recognized Statistical Rating Organizations (“NRSRO”) designations and/or equivalent ratings, as well as the percentage, based upon fair value that each designation comprises.
However, Enact Holdings may choose not to pay dividends in 2024 at this level as it may retain capital for future growth or to meet regulatory or other capital requirements.
However, Enact Holdings may choose not to pay dividends in 2025 at this level as it may retain capital for future growth or to meet regulatory or other capital requirements.
We define adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), changes in fair value of market risk benefits and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items.
We define adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) attributable to noncontrolling interests, net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items.
The availability of additional capital resources will depend on a variety of factors such as market 122 Table of Contents conditions, regulatory considerations, the general availability of credit, credit ratings and the performance of and outlook for Enact Holdings and the payment of dividends and other returns of capital therefrom.
The availability of additional capital resources will depend on a variety of factors such as market conditions, regulatory considerations, the general availability of credit, credit ratings and the performance of and outlook for Enact Holdings and the payment of dividends and other returns of capital therefrom.
We completed statutory cash flow testing for our life insurance subsidiaries in the fourth quarter of 2023 and concluded that the margin in GLIC was positive and within the $0.5 billion to $1.0 billion range. However, GLICNY had a negative margin and recorded additional statutory reserves of $87 million in 2023.
We completed statutory cash flow testing for our life insurance subsidiaries in the fourth quarter of 2024 and concluded that the margin in GLIC was positive and within the $0.5 billion to $1.0 billion range. However, GLICNY had a negative margin and recorded additional statutory reserves of $79 million in 2024.
Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and related notes included in “Item 8—Financial Statements and Supplementary Data.” Item 7 of our Annual Report on Form 10-K generally discusses year-to-year comparisons between the years ended December 31, 2023 and 2022.
Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and related notes included in “Item 8—Financial Statements and Supplementary Data.” 68 Table of Contents Item 7 of our Annual Report on Form 10-K generally discusses year-to-year comparisons between the years ended December 31, 2024 and 2023.
We are also required to establish additional benefit reserves for guarantees or product 116 Table of Contents features in addition to the contract value where the additional benefit reserves are calculated by applying a benefit ratio to accumulated contractholder assessments, and then deducting accumulated paid claims, commonly referred to as the additional insurance liability.
We are also required to establish additional benefit reserves for guarantees or product features in addition to the contract value where the additional benefit reserves are calculated by applying a benefit ratio to accumulated contractholder assessments, and then deducting accumulated paid claims, commonly referred to as the additional insurance liability.
As of December 31, 2023, 6% of our total fixed maturity securities related to Level 3 fixed maturity securities valued using internal pricing models.
As of December 31, 2024, 6% of our total fixed maturity securities related to Level 3 fixed maturity securities valued using internal pricing models.
Changes in fair value of market risk benefits and associated hedges consist of fair value changes of market risk benefits (other than changes attributable to instrument-specific credit risk), net of changes in the fair value of non-qualified derivative instruments associated with our market risk benefits. • Interest credited.
Changes in fair value of market risk benefits and associated hedges consist of fair value changes of market risk benefits (other than changes attributable to instrument-specific credit risk), net of changes in the fair value of non-qualified derivative instruments that support our market risk benefits. • Interest credited.
See note 22 in our consolidated financial statements under “Item 8—Financial Statements 123 Table of Contents and Supplementary Data” for additional information regarding the payment of dividends. In general, dividends are required to be submitted to an insurer’s domiciliary department of insurance for review, and distributions from sources other than unassigned surplus require affirmative approval before being paid.
See note 20 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data” for additional information regarding the payment of dividends. In general, dividends are required to be submitted to an insurer’s domiciliary department of insurance for review, and distributions from sources other than unassigned surplus require affirmative approval before being paid.
Investments and Derivative Instruments Trends and conditions Investments During the year ended December 31, 2023, our investments portfolio was impacted, and we believe will continue to be impacted, by the following macroeconomic trends. • The U.S.
Investments and Derivative Instruments Trends and conditions Investments During the year ended December 31, 2024, our investment portfolio was impacted, and we believe will continue to be impacted, by the following macroeconomic trends: • The U.S.
Based on estimated statutory results as of December 31, 2023, in accordance with applicable dividend restrictions, Enact Holdings’ U.S. mortgage insurance subsidiaries could pay dividends from unassigned surplus of approximately $336 million in 2024 without affirmative regulatory approval.
Based on estimated statutory results as of December 31, 2024, in accordance with applicable dividend restrictions, Enact Holdings’ U.S. mortgage insurance subsidiaries could pay dividends from unassigned surplus of approximately $153 million in 2025 without affirmative regulatory approval.
As of December 31, 2023, our total cash, cash equivalents and invested assets were $62.0 billion. Our investments in privately placed fixed maturity securities, commercial mortgage loans, policy loans, bank loans, limited partnership investments and select mortgage-backed and asset-backed securities are relatively illiquid.
As of December 31, 2024, our total cash, cash equivalents and invested assets were $60.0 billion. Our investments in privately placed fixed maturity securities, commercial mortgage loans, policy loans, bank loans, limited partnership investments and select mortgage-backed and asset-backed securities are relatively illiquid.
(2) Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(10) million, $(38) million and $(50) million for the years ended December 31, 2023, 2022 and 2021, respectively.
(2) Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(30) million, $(10) million and $(38) million for the years ended December 31, 2024, 2023 and 2022, respectively.
Under the program, share repurchases may be made at Genworth’s discretion from time to time in open market transactions, privately negotiated transactions, or by other means, including through Rule 10b5-1 trading plans.
Under the program, share repurchases may be made at Genworth’s discretion from time to time in open market transactions, privately negotiated 113 Table of Contents transactions, or by other means, including through Rule 10b5-1 trading plans.
We allocate corporate expenses to each of our operating segments using various methodologies. • Amortization of deferred acquisition costs and intangibles. Amortization of deferred acquisition costs (“DAC”) and intangibles consists primarily of the amortization of acquisition costs that are capitalized, present value of future profits and capitalized software. • Interest expense.
We allocate certain corporate expenses to each of our segments using various methodologies. • Amortization of deferred acquisition costs and intangibles. Amortization of deferred acquisition costs (“DAC”) and intangibles consists primarily of the amortization of capitalized acquisition costs, present value of future profits and capitalized software. • Interest expense.
We exclude net investment gains (losses), changes in fair value of market risk benefits and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in our opinion, they are not indicative of overall operating performance.
We exclude net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in our opinion, they are not indicative of overall operating performance.
Enact’s PMIERs required assets as of December 31, 2023 and 2022 benefited from the application of a 0.30 multiplier applied to the risk-based required asset amount factor for certain non-performing loans.
Enact’s PMIERs required assets as of December 31, 2024 and 2023 benefited from the application of a 0.30 multiplier applied to the risk based required asset amount factor for certain non-performing loans as defined under PMIERs.
For further information about our borrowings, refer to note 17 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data.” Regulated insurance subsidiaries Insurance laws and regulations regulate the payment of dividends and other distributions to us by our insurance subsidiaries.
For further information about Genworth Holdings’ and Enact Holdings’ borrowings, refer to note 15 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data.” Regulated insurance subsidiaries Insurance laws and regulations regulate the payment of dividends and other distributions to us by our insurance subsidiaries.
As of December 31, 2023, approximately 7% of our investment holdings recorded at fair value was based on significant inputs that were not market observable and were classified as Level 3 measurements.
As of December 31, 2024, approximately 6% of our investment holdings recorded at fair value was based on significant inputs that were not market observable and were classified as Level 3 measurements.
We may also from time to time seek to repurchase or redeem outstanding debt (with cash on hand, proceeds from the issuance of new debt and/or the proceeds from asset or stock sales) in open market purchases, tender offers, privately negotiated transactions or otherwise.
In addition, we also expect to continue to repurchase or redeem outstanding debt from time to time (with cash on hand, proceeds from the issuance of new debt and/or the proceeds from asset or stock sales) in open market purchases, tender offers, privately negotiated transactions or otherwise.
Our cash flows from operating activities are affected by the timing of premiums, fees and investment income received and benefits, claims and expenses paid. Positive cash flows from operating activities are then invested to support the obligations of our insurance and investment products and required capital supporting these products.
Cash flows related to operating activities are affected by the timing of premiums, fees and investment income received and benefits, claims and expenses paid. Cash flows from operating activities have been invested to support the obligations of our insurance and investment products and required capital supporting these products.
Liability remeasurement (gains) losses represent changes to the net premium ratio for actual versus expected experience and updates to cash flow assumptions used to measure long-duration traditional and limited-payment insurance contracts. • Changes in fair value of market risk benefits and associated hedges.
Liability remeasurement (gains) losses represent changes to the net premium ratio for actual variances from expected experience and updates to cash flow assumptions used to measure long-duration traditional and limited-payment insurance contracts. 69 Table of Contents • Changes in fair value of market risk benefits and associated hedges.
Long-term care insurance Key cash flow assumptions used to estimate the liability for future policy benefits for our long-term care insurance products include claim termination rates, incidence and benefit utilization rates, mortality, lapse rates and in-force rate actions. Claim termination rates represent the expected rates at which claims end. Incidence rates represent the likelihood the policyholder will go on claim.
Key cash flow assumptions used to estimate the liability for future policy benefits include claim termination rates, incidence and benefit utilization rates, mortality, lapse rates and in-force rate actions. Claim termination rates represent the expected rates at which claims end. Incidence rates represent the likelihood the policyholder will go on claim.
Benefits and other changes in policy reserves consist primarily of benefits paid, interest accretion expense and other reserve activity related to current claims, as well as future policy benefits on insurance and investment products for long-term care insurance, life insurance, fixed and variable annuities, and claim costs incurred related to mortgage insurance products. • Liability remeasurement (gains) losses.
Benefits and other changes in policy reserves consist primarily of benefits paid, interest accretion expense, and other reserve activity related to future policy benefits for long-term care insurance, life insurance, and fixed and variable annuities, and claim costs incurred related to mortgage insurance products. • Liability remeasurement (gains) losses.
A summary of certain of our significant estimates and assumptions used in the calculation of our fixed annuities liability for future policy benefits, net of reinsurance recoverable, was as follows for the years ended December 31: Increase (decrease) and percentage change (Amounts in millions) 2023 2022 2023 vs. 2022 Total present value of expected future policy benefits (1) $ 2,691 $ 2,897 $ (206 ) (7 )% (1) At the locked-in discount rate.
A summary of certain of our significant estimates and assumptions used in the calculation of our fixed annuities liability for future policy benefits, net of reinsurance recoverable, was as follows for the years ended December 31: Increase (decrease) and percentage change (Amounts in millions) 2024 2023 2024 vs. 2023 Total present value of expected future policy benefits (1) $ 2,518 $ 2,691 $ (173 ) (6 )% (1) At the locked-in discount rate.
These inflationary pressures have not had a significant impact on our liquidity to date; however, if these conditions persist for a long period of time, they could have a material adverse impact on our liquidity, results of operations and financial condition. We will continue to monitor macroeconomic trends, including inflation, to help mitigate any potential adverse impacts to our liquidity.
These inflationary pressures have not had a significant impact on our liquidity to date; however, if these 115 Table of Contents conditions persist, they could have a material adverse impact on our liquidity, results of operations and financial condition. We will continue to monitor macroeconomic trends, including inflation, to help mitigate any potential adverse impacts to our liquidity.
It is important to note that quarterly variations resulting from assumption updates and actual versus expected experience are typically expected to be relatively small compared to the overall size of our liability for future policy benefits of $42.2 billion, at the locked-in discount rate, for our long-term care insurance business as of December 31, 2023.
It is important to note that quarterly variations resulting from assumption updates and actual variances from expected experience are typically expected to be relatively small compared to the overall size of our liability for future policy benefits of $43.0 billion, at the locked-in discount rate, for our long-term care insurance business as of December 31, 2024.
Additionally, in our long-term care insurance business, we have observed an increase in the cost of care principally attributable to elevated inflation. Increases in cost of care have resulted in higher claim payments in our long-term care insurance business, which could have a material adverse impact on our liquidity, results of operations and financial condition if it persists.
Additionally, we have observed an increase in the cost of care in our long-term care insurance business, due in part to elevated inflation. Increases in cost of care have resulted in higher claim payments, which could have a material adverse impact on our liquidity, results of operations and financial condition if the increases persist.
Under LDTI, the impacts of assumption updates and actual versus expected experience will continue to drive volatility in our long-term care insurance results, particularly for our unprofitable capped cohorts.
The impacts of assumption updates and actual variances from expected experience will continue to drive volatility in our long-term care insurance results, particularly for our unprofitable capped cohorts.
Genworth Financial’s U.S. life insurance subsidiaries offer long-term care insurance and also manage in-force blocks of life insurance and annuity products which are no longer sold. We report our business results through three operating business segments: Enact; Long-Term Care Insurance; and Life and Annuities.
Genworth Financial’s U.S. life insurance subsidiaries offer long-term care insurance and also manage in-force blocks of life insurance and annuity products which are no longer sold. We report our business results through three segments: Enact; Long-Term Care Insurance; and Life and Annuities. In addition to our three segments, we report certain of our results of operations in Corporate and Other.
The following sensitivities reflect hypothetical unfavorable changes to certain of our significant estimates and assumptions and the associated impact it would have on liability remeasurement gains (losses) within pre-tax income for the year ended December 31, 2023: (Amounts in millions) 100 basis point decrease in projected crediting rates $ (50 ) 10% increase in persistency $ (213 ) 2% higher mortality $ (42 ) Liability for policy and contract claims The liability for policy and contract claims represents the amount needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the end of the respective reporting period.
The following sensitivities reflect hypothetical unfavorable changes to certain of our significant estimates and assumptions and the associated impact it would have on liability remeasurement gains (losses) within pre-tax income for the year ended December 31, 2024: (Amounts in millions) 100 basis point decrease in projected crediting rates $ (36 ) 10% decrease in lapses $ (226 ) 2% increase in mortality $ (43 ) 108 Table of Contents Liability for policy and contract claims The liability for policy and contract claims represents the amount needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the end of the respective reporting period.
The exposure to the largest single corporate issuer held as of December 31, 2023 was $273 million, which was less than 1% of our total cash, cash equivalents and invested assets. See note 5 to our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional information on diversification by sector.
The exposure to the largest single corporate issuer held as of December 31, 2024 was $274 million, which was less than 1% of our total cash, cash 103 Table of Contents equivalents and invested assets. See note 4 to our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional information on diversification by sector.
Genworth Financial provides a full and unconditional guarantee to the trustee and holders of Genworth Holdings’ outstanding senior and subordinated notes, on an unsecured unsubordinated and subordinated basis, respectively, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, the outstanding senior and subordinated notes and their respective indentures.
Supplemental Condensed Consolidating Financial Information Genworth Financial provides a full and unconditional guarantee to the trustee and holders of Genworth Holdings’ outstanding senior and subordinated notes (registered securities under the Securities Act of 1933), on an unsecured unsubordinated and subordinated basis, respectively, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, the outstanding senior and subordinated notes and their respective indentures.
The following table sets forth the number of loans insured, the number of delinquent loans and the delinquency rate for Enact’s loan portfolio as of December 31: 2023 2022 2021 Primary insurance: Insured loans in-force 974,516 960,306 937,350 Delinquent loans 20,432 19,943 24,820 Percentage of delinquent loans (delinquency rate) 2.10 % 2.08 % 2.65 % The delinquency rate as of December 31, 2023 increased compared to December 31, 2022 primarily from an increase in total delinquencies mostly driven by new delinquencies outpacing cures and paid claims.
The following table sets forth the number of loans insured, the number of delinquent loans and the delinquency rate for Enact’s loan portfolio as of December 31: 2024 2023 2022 Primary insurance: Insured loans in-force 962,849 974,516 960,306 Delinquent loans 23,566 20,432 19,943 Percentage of delinquent loans (delinquency rate) 2.45 % 2.10 % 2.08 % The delinquency rate as of December 31, 2024 increased compared to December 31, 2023 primarily from an increase in total delinquencies mostly driven by new delinquencies outpacing cures and paid claims.
Given the challenging macroeconomic environment in 2022 and 2023, employee costs were higher driven in part by wage inflation, the competitive labor market and low labor participation. Additionally, in our long-term care insurance business, we have observed an increase in the cost of care principally attributable to elevated inflation.
Given the challenging macroeconomic environment in 2023 and 2024, employee costs have increased driven in part by wage inflation, the competitive labor market and low labor participation. Additionally, in our long-term care insurance business, we have observed an increase in the cost of care due in part to elevated inflation.
As of December 31, 2023, our combined holdings in the 10 corporate issuers to which we had the greatest exposure was $1.8 billion, which was 111 Table of Contents approximately 3% of our total cash, cash equivalents and invested assets.
As of December 31, 2024, our combined holdings in the 10 corporate issuers to which we had the greatest exposure was $1.7 billion, which was approximately 3% of our total cash, cash equivalents and invested assets.
The FHFA also announced in October 2022 its validation and approval of certain credit score models for use by the GSEs and changed the required number of credit reports provided by lenders from all three nationwide consumer reporting agencies to only two.
On October 24, 2022, the FHFA announced its validation and approval of certain credit score models for anticipated use by the GSEs and proposed changing the required number of credit reports provided by lenders from all three nationwide consumer reporting agencies to only two.
The net losses in 2023 were primarily related to portfolio repositioning and liquidity management, as well as regional bank exposure management, including a $15 million loss related to the sale of First Republic Bank U.S. corporate bonds. • We recorded net unrealized gains on equity securities of $53 million in 2023 driven by favorable equity market performance compared to net unrealized losses of $35 million in 2022 from unfavorable performance.
The net losses in 2023 were primarily from sales related to portfolio repositioning and liquidity management, as well as reducing regional bank exposure, including a $15 million loss related to the sale of First Republic Bank U.S. corporate bonds. • We recorded $30 million of higher net unrealized gains on equity securities driven by more favorable equity market performance in 2024.
Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans insured by our U.S. mortgage insurance subsidiaries. Risk in-force is based on the coverage percentage applied to the estimated current outstanding loan balance.
Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans insured by our U.S. mortgage insurance subsidiaries. Risk in-force is based on the coverage percentage applied to the estimated current outstanding loan balance. These metrics are presented on a direct basis and exclude reinsurance.
As of December 31, 2023, we posted initial margin of $79 million to our clearing agents, which represented $39 million more than was otherwise required by the clearinghouse.
As of December 31, 2024, we posted initial margin of $74 million to our clearing agents, which represented $37 million more than was otherwise required by the clearinghouse.
Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments. 72 Table of Contents The following table presents a reconciliation of net income to adjusted operating income for the years ended December 31: (Amounts in millions) 2023 2022 2021 Net income available to Genworth Financial, Inc.’s common stockholders $ 76 $ 916 $ 850 Add: net income from continuing operations attributable to noncontrolling interests 123 130 33 Add: net income from discontinued operations attributable to noncontrolling interests — — 8 Net income 199 1,046 891 Less: income from discontinued operations, net of taxes — — 27 Income from continuing operations 199 1,046 864 Less: net income from continuing operations attributable to noncontrolling interests 123 130 33 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders 76 916 831 Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (25 ) 2 (322 ) Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) (22 ) (142 ) (210 ) (Gains) losses on early extinguishment of debt (3) (2 ) 6 45 Expenses related to restructuring 4 2 34 Pension plan termination costs — 8 — Taxes on adjustments 10 26 96 Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 41 $ 818 $ 474 (1) For the year ended December 31, 2023, net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $2 million.
Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments. 72 Table of Contents The following table presents a reconciliation of net income to adjusted operating income for the years ended December 31: (Amounts in millions) 2024 2023 2022 Net income available to Genworth Financial, Inc.’s common stockholders $ 299 $ 76 $ 916 Add: net income attributable to noncontrolling interests 128 123 130 Net income 427 199 1,046 Less: loss from discontinued operations, net of taxes (10 ) — — Income from continuing operations 437 199 1,046 Less: net income from continuing operations attributable to noncontrolling interests 128 123 130 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders 309 76 916 Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (17 ) (25 ) 2 Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) (43 ) (22 ) (142 ) (Gains) losses on early extinguishment of debt (3) 2 (2 ) 6 Expenses related to restructuring 12 4 2 Pension plan termination costs — — 8 Taxes on adjustments 10 10 26 Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 273 $ 41 $ 818 (1) For the years ended December 31, 2024 and 2023, net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $4 million and $2 million, respectively.
As of December 31, 2023, Enact had estimated available assets of $5,006 million against $3,119 million net required assets under PMIERs compared to available assets of $5,206 million against $3,156 million net required assets as of December 31, 2022.
As of December 31, 2024, Enact had estimated available assets of $5,095 million against $3,043 million net required assets under PMIERs compared to available assets of $5,006 million against $3,119 million net required assets as of December 31, 2023.
Genworth Holdings agreed to participate in order to maintain its overall ownership at its current level. As the majority shareholder, Genworth Holdings received $245 million of capital returns from Enact Holdings in 2023, comprised of quarterly dividends, a special dividend and share repurchases.
Genworth Holdings has agreed to participate in order to maintain its overall ownership at approximately its current level. As the majority shareholder, Genworth Holdings received $289 million of capital returns from Enact Holdings in 2024, comprised of quarterly dividends and share repurchases.
The liability remeasurement loss in 2023 was largely driven by adverse actual versus expected experience primarily related to higher claims and unfavorable timing impacts from the second legal settlement.
The liability remeasurement loss in 2023 was largely driven by adverse actual variances from expected experience primarily related to higher claims and unfavorable timing impacts from the second legal settlement. In addition, cash flow assumption updates were unfavorable in 2023.
The following table sets forth filing approvals as part of our multi-year in-force rate action plan for the years ended December 31: (Dollar amounts in millions) 2023 2022 2021 State filings approved 117 139 173 Impacted in-force premiums $ 697 $ 1,143 $ 1,095 Weighted-average percentage rate increase approved 51 % 48 % 37 % Gross incremental premiums approved $ 354 $ 549 $ 403 We estimate that the cumulative economic benefit of approved rate actions in our long-term care insurance multi-year in-force rate action plan from 2012 through December 31, 2023 was approximately $28.0 billion, on a net present value basis, which includes our current updated assumptions regarding future premiums and benefit reductions from approved rate actions and legal settlements.
The following table sets forth filing approvals as part of our multi-year in-force rate action plan for the years ended December 31: (Dollar amounts in millions) 2024 2023 2022 State filings approved 97 117 139 Impacted in-force premiums $ 870 $ 697 $ 1,143 Weighted-average percentage rate increase approved 39 % 51 % 48 % Gross incremental premiums approved $ 343 $ 354 $ 549 We estimate that the cumulative economic benefit of approved rate actions in our multi-year in-force rate action plan from 2012 through December 31, 2024 was approximately $31.2 billion, on a net present value basis, based on our current updated assumptions regarding future premiums and benefit reductions from approved rate actions.
The following sensitivities reflect hypothetical unfavorable changes to certain of our significant estimates and assumptions and the associated impact it would have on liability remeasurement gains (losses) within pre-tax income for the year ended December 31, 2023: (Amounts in millions) 2% higher mortality $ (20 ) 10% increase in lapses $ (60 ) Fixed annuities The key cash flow assumption used to estimate the liability for future policy benefits for our fixed annuity products is mortality.
The following sensitivities reflect hypothetical unfavorable changes to certain of our significant estimates and assumptions and the associated impact it would have on liability remeasurement gains (losses) within pre-tax income for the year ended December 31, 2024: (Amounts in millions) 2% increase in mortality $ (25 ) 10% increase in lapses $ (65 ) Fixed annuities The key cash flow assumption used to estimate the liability for future policy benefits for our fixed annuity products is mortality. 107 Table of Contents In the fourth quarters of 2024 and 2023, our annual review of cash flow assumptions did not have a significant impact on liability remeasurement gains (losses) within net income for our fixed annuity products.
Enact segment Trends and conditions Results of our Enact segment are affected primarily by the following factors: competitor actions; unemployment or underemployment levels; other economic and housing market trends, including interest rates, home prices, the number of first-time homebuyers, and mortgage origination volume mix and practices; the size of the overall private mortgage insurance market and the effect of regulatory actions thereon; the levels and aging of mortgage delinquencies; the effect of seasonal variations; the inventory of unsold homes; loan modification and other servicing efforts; and litigation, among other items.
See “Part I—Item 1—Business—Strategic Priorities—CareScout growth initiatives.” Results of Operations and Selected Financial and Operating Performance Measures by Segment Enact segment Trends and conditions Results of our Enact segment are affected primarily by the following factors: competitor actions; unemployment or underemployment levels; other economic and housing market trends, including interest rates, home prices, the number of first-time homebuyers, and mortgage origination volume mix and practices; the size of the overall private mortgage insurance market and the effect of regulatory actions thereon; the levels and aging of mortgage delinquencies; the effect of seasonal variations; the inventory of unsold homes; loan modification and other servicing efforts; and litigation, among other items.
The effective tax rates disclosed herein are calculated using whole numbers. As a result, the percentages shown may differ from an effective tax rate calculated using rounded numbers. • Net income from continuing operations attributable to noncontrolling interests.
As a result, the percentages shown may differ from an effective tax rate calculated using rounded numbers. • Net income attributable to noncontrolling interests.
Overview of cash flows—Genworth and subsidiaries The following table sets forth our condensed consolidated cash flows for the years ended December 31: (Amounts in millions) 2023 2022 2021 Net cash from operating activities $ 597 $ 1,049 $ 437 Net cash from investing activities 1,261 733 896 Net cash used by financing activities (1,443 ) (1,554 ) (2,419 ) Net increase (decrease) in cash before foreign exchange effect $ 415 $ 228 $ (1,086 ) Our principal sources of cash include sales of our products and services, income from our investment portfolio and proceeds from sales of investments.
Overview of cash flows—Genworth and subsidiaries The following table sets forth our condensed consolidated cash flows for the years ended December 31: (Amounts in millions) 2024 2023 2022 Net cash from operating activities $ 88 $ 597 $ 1,049 Net cash from investing activities 861 1,261 733 Net cash used by financing activities (1,115 ) (1,443 ) (1,554 ) Net increase (decrease) in cash before foreign exchange effect $ (166 ) $ 415 $ 228 Our principal sources of cash include premiums and other payments received on our insurance products and services, income from our investment portfolio and proceeds from sales and maturities of investments.
Enact’s loss reserves were $518 million and $519 million as of December 31, 2023 and 2022, respectively.
Enact’s loss reserves were $525 million and $518 million as of December 31, 2024 and 2023, respectively.
As of December 31, 2023, the risk in-force of active policies was approximately $893 million.
As of December 31, 2024, the risk in-force of active policies was approximately $766 million.
For fixed indexed annuities, equity market and interest rate performance and volatility could also result in additional gains or losses, although associated hedging activities are expected to partially mitigate these impacts.
In the future, equity market and interest rate performance and volatility could result in additional gains or losses in these products, although associated hedging activities are expected to partially mitigate these impacts.
Policy fees and other income consists primarily of fees assessed against policyholder and contractholder account values, surrender charges, cost of insurance assessed on universal and term universal life insurance policies, advisory and administration service fees assessed on investment contractholder account values, broker/dealer commission revenues, fee revenue from contract underwriting services and other fees. 69 Table of Contents Our expenses consist primarily of the following: • Benefits and other changes in policy reserves.
Policy fees and other income consists primarily of fees assessed against policyholder and contractholder account values, surrender charges, cost of insurance assessed on universal and term universal life insurance policies, advisory and administration service fees assessed on investment contractholder account values, broker-dealer commission revenues, fee revenue from contract underwriting services and other fees.
Management regularly monitors and reports sales metrics as a measure of volume of new business generated in a period. Sales refer to new insurance written for mortgage insurance products included in our Enact segment.
Management regularly monitors and reports new insurance written for our Enact segment as a measure of volume of new business generated in a period.
Although uncertainty remains with respect to the ultimate losses Enact will experience on these policy years, they have become a smaller percentage of its total mortgage insurance portfolio. Loss reserves have shifted to newer book years, largely 2020 and later given their significant representation of risk in-force.
Although uncertainty remains with respect to the ultimate losses Enact will experience on these policy years, they have become a smaller percentage of its total mortgage insurance portfolio. The concentration of loss reserves has shifted to newer book years in line with changes in risk in-force.
Under statutory accounting, only changes to our claim reserve assumptions are reflected in statutory income. Assumption changes impacting active life reserves are included in cash flow testing margin, which only impacts statutory income if the margin falls below zero.
Under statutory cash flow testing, changes impacting active life reserves are included in our margin review and only impact statutory income if the margin falls below zero. However, changes to our claim reserve assumptions are immediately reflected in statutory income.
Under LDTI, we elected to update the net premium ratio quarterly for actual versus expected experience; therefore, forecasted cash flow assumptions will be replaced with actual cash flows each quarter with any difference recorded in net income (loss).
GAAP financial results. We update the net premium ratio quarterly for actual variances from expected experience; therefore, forecasted cash flow assumptions will be replaced with actual cash flows each quarter with any difference recorded in net income (loss).
The sufficiency ratio as of December 31, 2023 was 161% or $1,887 million above the PMIERs requirements, compared to 165% or $2,050 million above the published PMIERS requirements as of December 31, 2022.
The sufficiency ratio as of December 31, 2024 was 167% or $2,052 million above the PMIERs requirements, compared to 161% or $1,887 million above the PMIERs requirements as of December 31, 2023.
We monitor these selected operating performance measures for in-force rate actions to track our progress on ensuring the continued self-sustainability of our long-term care insurance business over time. We consider these in-force rate actions metrics to be measures of financial performance and help to enhance the understanding of the operating performance of our Long-Term Care Insurance segment.
We monitor these selected operating performance measures for in-force rate actions to track our progress on maintaining the self-sustainability of our legacy U.S. life insurance subsidiaries. We consider these in-force rate action metrics to be measures of financial performance and help to enhance the understanding of the operating performance of our Long-Term Care Insurance segment.
The increase in the liability remeasurement loss was largely attributable to a $244 million increase in our life insurance products principally driven by unfavorable updates to our persistency assumptions for certain universal life insurance products with secondary guarantees and unfavorable mortality updates, including more modest mortality improvement, in our term universal, universal and term life insurance products.
The liability remeasurement loss in our life insurance products in 2023 was principally driven by unfavorable updates of $256 million primarily related to our persistency assumptions for certain universal life insurance products with secondary guarantees and unfavorable mortality updates, including more modest mortality improvement.
Executing on our multi-year long-term care insurance in-force rate action plan with premium rate increases and associated benefit reductions on our legacy long-term care insurance policies is critical to the business.
Executing on our multi-year long-term care insurance in-force rate action plan with premium rate increases and associated benefit reductions on our legacy long-term care insurance policies is critical to the business. For an update on in-force rate actions, refer to the selected operating performance measures below.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeUnder this model, with all other factors constant and assuming no offsetting change in the value of our liabilities, we estimated that such an increase in interest rates would cause the fair value of our fixed maturity securities to decrease by approximately $3.1 billion based on the fair value of our fixed maturity securities as of December 31, 2023, as compared to an estimated decrease of $3.2 billion under this model as of December 31, 2022.
Biggest changeUnder this model, with all other factors constant and assuming no offsetting change in the value of our liabilities, we estimated that such an increase in interest rates would cause the fair value of our fixed maturity securities to decrease by approximately $3.0 billion based on the fair value of our fixed maturity securities as of December 31, 2024, as compared to an estimated decrease of $3.1 billion under this model as of December 31, 2023. 118 Table of Contents We performed a similar sensitivity analysis on our derivatives portfolio and noted that a 100 basis point increase in interest rates resulted in a decrease in fair value of $675 million based on our derivatives portfolio as of December 31, 2024, as compared to an estimated decline of $655 million under this model as of December 31, 2023.
While we enter into derivatives to mitigate certain market risks, our agreements with futures commission merchants and derivative counterparties require that we provide securities for initial margin to future commission merchants and securities as collateral to our derivative counterparties to reflect changes in the fair value of our derivatives.
While we enter into derivatives to mitigate certain market risks, our agreements with futures commission merchants and derivative counterparties require that we provide securities for initial margin to futures commission merchants and securities as collateral to our derivative counterparties to reflect changes in the fair value of our derivatives.
Market risk is directly influenced by the volatility and liquidity in the markets in which the related underlying financial instruments are traded.
Market risk is directly influenced by the volatility and liquidity in the markets in which the related financial instruments are traded.
We also performed a similar sensitivity analysis on our variable annuity market risk benefits and noted that a 100 basis point increase in interest rates, with all other factors held constant, would result in a decrease in the fair value of the net liability after reinsurance of approximately $100 million as of December 31, 2023, as compared to a decrease of $120 million as of December 31, 2022.
We also performed a similar sensitivity analysis on our variable annuity market risk benefits and noted that a 100 basis point increase in interest rates, with all other factors held constant, would result in a decrease in the fair value of the net liability after reinsurance of approximately $75 million as of December 31, 2024, as compared to a decrease of approximately $100 million as of December 31, 2023.
We performed a similar sensitivity analysis on our equity market derivatives and noted that a 10% decline in equity market prices would result in an increase in fair value of $51 million and $54 million based on our equity market derivatives as of December 31, 2023 and 2022, respectively.
We performed a similar sensitivity analysis on our equity market derivatives and noted that a 10% decline in equity market prices would result in an increase in fair value of $40 million and $51 million based on our equity market derivatives as of December 31, 2024 and 2023, respectively.
Under this model, with all other factors constant, we estimated that such a decline in equity market prices would cause the fair value of our equity investments to decline by approximately $35 million based on our equity positions as of December 31, 2023, as compared to an estimated decline of $26 million under this model as of December 31, 2022.
Under this model, with all other factors constant, we estimated that such a decline in equity market prices would cause the fair value of our equity investments to decline by approximately $45 million based on our equity positions as of December 31, 2024, as compared to a decline of approximately $35 million under this model as of December 31, 2023.
For additional information on interest rate risks associated with our insurance and investment contract liabilities, see “Item 1A—Risk Factors—Interest rates and changes in rates, including changes in monetary policy to combat inflation, could materially adversely affect our business and profitability.” Interest rate fluctuations could also have an adverse effect on the results of our investment portfolio.
For additional information on interest rate risks associated with our insurance and investment contract liabilities, see “Item 1A—Risk Factors—Interest rates and changes in rates could materially adversely affect our business and profitability.” Interest rate fluctuations could also have an adverse effect on the results of our investment portfolio.
The estimated decrease in fair value of our derivatives portfolio would also require us to post collateral to certain derivative counterparties of $590 million and would require us to post cash margin related to our cleared swaps and futures contracts of $129 million based on our derivatives portfolio as of December 31, 2023.
The estimated decrease in fair value of our derivatives portfolio would also require us to post collateral to certain derivative counterparties of $620 million and would require us to post cash margin related to our cleared swaps and futures contracts of $105 million based on our derivatives portfolio as of December 31, 2024.
As of December 31, 2023, Genworth Holdings had outstanding principal of $856 million of long-term debt, with no debt maturities until June 2034, and Enact Holdings had outstanding principal of $750 million of long-term debt due in August 2025. We continue to monitor the interest rate environment and other market influences to evaluate repurchasing Genworth Holdings’ debt prior to maturity.
As of December 31, 2024, Genworth Holdings had outstanding principal of $790 million of long-term debt, with no debt maturities until June 2034, and Enact Holdings had outstanding principal of $750 million of long-term debt due in May 2029. We continue to monitor the interest rate environment and other market influences to evaluate repurchasing Genworth Holdings’ debt prior to maturity.
Of the $655 million estimated decrease in fair value of our derivatives portfolio as of December 31, 2023, $65 million related to non-qualified derivatives used to mitigate interest rate risk associated with our variable annuity market risk benefits.
Of the $675 million estimated decrease in fair value of our derivatives portfolio as of December 31, 2024, $50 million related to non-qualified derivatives used to mitigate interest rate risk associated with our variable annuity market risk benefits.
The carrying value of our investment portfolio as of December 31, 2023 and 2022 was $59.8 billion and $58.9 billion, of which 78% and 79%, respectively, was invested in fixed maturity securities. The primary market risk to our investment portfolio is interest rate risk associated with investments in fixed maturity securities.
The carrying value of our investment portfolio as of December 31, 2024 and 2023 was $57.9 billion and $59.8 billion, respectively, of which 78% was invested in fixed maturity securities for both periods. The primary market risk to our investment portfolio is interest rate risk associated with investments in fixed maturity securities.
We also performed a similar sensitivity analysis on our variable annuity market risk benefits and noted that a 10% broad-based decline in equity market prices, with all other factors held constant, would result in an increase in the fair value of the net liability after reinsurance of approximately $70 million as of December 31, 2023, as compared to an increase of approximately $80 million as of December 31, 2022. 128 Table of Contents
We also performed a similar sensitivity analysis on our variable annuity market risk benefits and noted that a 10% broad-based decline in equity market prices, with all other factors held constant, would result in an increase in the fair value of the net liability after reinsurance of approximately $60 million as of December 31, 2024, as compared to an increase of approximately $70 million as of December 31, 2023. 119 Table of Contents 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The model is a floating rate coupon model using the risk premium or spread assumption to derive the valuation. Equity Market Risk One means of assessing exposure to changes in equity market prices is to estimate the potential changes in market values on our equity investments resulting from a hypothetical broad-based decline in equity market prices of 10%.
Equity Market Risk One means of assessing exposure to changes in equity market prices is to estimate the potential changes in market values on our equity investments resulting from a hypothetical broad-based decline in equity market prices of 10%.
Genworth Holdings’ variable interest rate debt is comprised of junior subordinated notes due in November 2066. In the third quarter of 2023, Genworth Holdings’ 2066 Notes transitioned from an annual interest rate equal to the three-month LIBOR plus 2.0025% to the three-month Term SOFR Reference Rate, plus a tenor spread adjustment of 0.26161%, plus an additional spread of 2.0025%.
In the third quarter of 2023, Genworth Holdings’ 2066 Notes transitioned from an annual interest rate equal to the three-month London Interbank Offered Rate plus 2.0025% to the three-month Term Secured Overnight Financing Rate (“SOFR”) plus a tenor spread adjustment of 0.26161%, plus an additional spread of 2.0025%.
We use these derivatives to mitigate certain interest rate risk by reducing the risk between the timing of the receipt of cash and its investment in the market and better aligning the duration of assets with the duration of the liabilities.
We use these derivatives to mitigate certain interest rate risk by reducing the risk between the timing of the receipt of cash and its investment in the market and better aligning the duration of assets with the duration of the liabilities. 117 Table of Contents As a matter of policy, we have not and will not engage in derivative market-making, speculative derivative trading or other speculative derivative activities.
While we are exposed to interest rate risk from Genworth Holdings’ 2066 Notes, we attempt to mitigate the interest rate risk by investing in variable rate assets that back this obligation. We use derivative instruments, such as interest rate swaps, financial futures and option-based financial instruments, as part of our risk management strategy.
We use derivative instruments, such as interest rate swaps, financial futures and option-based financial instruments, as part of our risk management strategy.
As a matter of policy, we have not and will not engage in derivative market-making, speculative derivative trading or other speculative derivative activities. 126 Table of Contents Equity Market Risk Our exposure to equity market risk within our insurance companies primarily relates to variable annuities and life insurance products and certain equity linked products.
Equity Market Risk Our exposure to equity market risk within our insurance companies primarily relates to variable annuities and life insurance products and certain equity-linked products.
The principal amount, weighted-average interest rate and fair value of Genworth Holdings’ 2066 Notes were as follows as of December 31: (Dollar amounts in millions) 2023 2022 Principal amount $ 593 $ 600 Weighted-average interest rate 7.27 % 3.81 % Fair value (1) $ 443 $ 378 (1) The fair value methodology is based on the then-current coupon, revalued based on the three-month Term SOFR Reference Rate or LIBOR, as applicable, set and commercially available data using the current spread assumption.
The principal amount, weighted-average interest rate and fair value of Genworth Holdings’ 2066 Notes were as follows as of December 31: (Dollar amounts in millions) 2024 2023 Principal amount $ 546 $ 593 Weighted-average interest rate (1) 7.44 % 7.27 % Fair value (2) $ 451 $ 443 (1) Excludes the impact of the interest rate swap Genworth Holdings entered into in 2024, which locked in an approximate 5.5% fixed interest rate on $100 million aggregate principal amount of the 2066 Notes for a period of five years.
Removed
We performed a similar sensitivity analysis on our derivatives portfolio and noted that a 100 basis point increase in interest rates resulted in a decrease in fair value of $655 million based on our derivatives portfolio as 127 Table of Contents of December 31, 2023, as compared to an estimated decline of $496 million under this model as of December 31, 2022.
Added
While we are exposed to interest rate risk from Genworth Holdings’ 2066 Notes, we attempt to mitigate this risk through an interest rate swap designed to hedge the variable interest payments. See “—Liquidity and Capital Resources” for additional information.
Removed
See note 17 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data” for additional information.
Added
Genworth Holdings’ variable interest rate debt is comprised of junior subordinated notes due in November 2066.
Added
See “—Liquidity and Capital Resources.” (2) The fair value methodology is based on the then-current coupon, revalued based on the three-month Term SOFR Reference Rate set and commercially available data using the current spread assumption. The model is a floating rate coupon model using the risk premium or spread assumption to derive the valuation.

Other GNW 10-K year-over-year comparisons