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What changed in GENWORTH FINANCIAL INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of GENWORTH FINANCIAL INC's 2024 and 2025 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 2025 report.

+742 added−708 removedSource: 10-K (2026-02-27) vs 10-K (2025-02-28)

Top changes in GENWORTH FINANCIAL INC's 2025 10-K

742 paragraphs added · 708 removed · 576 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

143 edited+49 added−46 removed162 unchanged
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.
Biggest changeRatings actions • On January 15, 2026, S&P revised the outlook to positive from stable and affirmed the financial strength rating of “A-” of EMICO. • On September 18, 2025, A.M. Best revised the outlook to positive from stable and affirmed the financial strength rating of “A-” of EMICO. 14 Table of Contents • On September 17, 2025, A.M.
Certain additional Insurance Laws specific to mortgage insurers are discussed below under “—Enact—Mortgage Insurance Regulation.” Insurance holding company regulation Our principal U.S. insurance subsidiaries are domiciled in Delaware, New York, North Carolina and Virginia and (except for our captive insurers) are required to register as members of an insurance holding company system under their domiciliary state’s insurance holding company act.
Certain additional Insurance Laws specific to mortgage insurers are discussed below under “—Enact—Mortgage Insurance Regulation.” Insurance holding company regulation Our principal U.S. insurance subsidiaries are domiciled in Delaware, New York, North Carolina and Virginia and are required to register as members of an insurance holding company system under their domiciliary state’s insurance holding company act (except for our captive insurers).
The financial requirements of PMIERs mandate that a mortgage insurer’s “Available Assets” (generally only the most liquid assets of an insurer) must meet or exceed “Minimum Required Assets” (which are based on an insurer’s risk in-force and are calculated from tables of factors with several risk dimensions and are subject to a floor amount).
The financial requirements of PMIERs mandate that a mortgage insurer’s “Available Assets” (generally only the most liquid assets of an insurer) must meet or exceed “Minimum Required Assets” (which are based on an insurer’s risk in-force, are calculated from tables of factors with several risk dimensions and are subject to a floor amount).
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.
SB 253 requires in-scope 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.
SB 253 requires disclosures of Scope 1 and Scope 2 emissions beginning in 2026 (using fiscal year ended 2025 data), and Scope 3 emissions disclosures beginning in 2027. Scope 1 and Scope 2 disclosures require limited assurance beginning in 2026 and reasonable assurance beginning in 2030, and limited assurance may be required over Scope 3 disclosures beginning in 2030.
SB 253 requires disclosures of Scope 1 and Scope 2 emissions beginning in 2026 (using fiscal year ended 2025 data), and Scope 3 emissions disclosures beginning in 2027. Scope 1 and Scope 2 disclosures require limited assurance beginning in 2027 and reasonable assurance beginning in 2030, and limited assurance may be required over Scope 3 disclosures beginning in 2030.
For instance, the 2021 Guidance states that an insurer should: (i) incorporate climate risk into its financial risk management, including its ORSA; (ii) manage climate risk through its enterprise risk management functions and ensure that its organizational structure clearly defines roles and responsibilities related to managing such risk; (iii) use scenario analysis when developing business strategies and identifying risks; and (iv) incorporate the management of climate risk into its corporate governance structure at the group or insurer entity level.
For instance, the guidance that states that an insurer should: (i) incorporate climate risk into its financial risk management, including its ORSA; (ii) manage climate risk through its enterprise risk management functions and ensure that its organizational structure clearly defines roles and responsibilities related to managing such risk; (iii) use scenario analysis when developing business strategies and identifying risks; and (iv) incorporate the management of climate risk into its corporate governance structure at the group or insurer entity level.
Best rating Genworth Life Insurance Company (“GLIC”) C++ (9 th highest of 13) Genworth Life and Annuity Insurance Company (“GLAIC”) B- (8 th highest of 13) Genworth Life Insurance Company of New York (“GLICNY”) C++ (9 th highest of 13) The financial strength ratings of our operating companies are not designed to be, and do not serve as, measures of protection or valuation offered to investors.
Best rating Genworth Life Insurance Company C++ (9 th highest of 13) Genworth Life and Annuity Insurance Company (“GLAIC”) B- (8 th highest of 13) Genworth Life Insurance Company of New York (“GLICNY”) C++ (9 th highest of 13) The financial strength ratings of our operating companies are not designed to be, and do not serve as, measures of protection or valuation offered to investors.
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.
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.
Operations and Technology Service and support Enact Holdings and its U.S. mortgage insurance subsidiaries have introduced technology enabled services to help their customers (lenders and servicers) as well as consumers (borrowers and homeowners). Enact Holdings heavily relies upon information technology, and a number of critical aspects are highly automated.
Operations and Technology Service and support Enact Holdings and its U.S. mortgage insurance subsidiaries have introduced technology enabled services to help their customers (lenders and servicers) as well as consumers (borrowers and homeowners). Enact Holdings relies heavily upon technology, and a number of critical aspects are highly automated.
We take a holistic approach to human capital management, including attracting and retaining talent with comprehensive benefits and compensation packages, providing professional development and learning opportunities, facilitating access to dedicated resources that foster an equitable and inclusive environment and encouraging a sincere commitment to community service and involvement.
We take a holistic approach to human capital management, including attracting and retaining talent with comprehensive benefits and compensation packages, providing professional development and learning opportunities, facilitating access to dedicated resources that foster an inclusive environment and encouraging a sincere commitment to community service and involvement.
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.
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 to protect the confidentiality, integrity and availability of that information.
We also cannot predict whether other federal initiatives will be adopted or what impact, if any, such initiatives, if adopted as laws, may have on our business, financial condition or results of operations, or whether existing federal initiatives will be eliminated under the current U.S. Administration.
We also cannot predict whether other federal initiatives will be adopted or what impact, if any, such initiatives, if adopted as laws, may have on our business, financial condition or results of operations, or whether existing federal initiatives or agencies will be eliminated under the current U.S. Administration.
Our website also includes the charters of our audit committee, nominating and corporate governance committee, risk committee, and management development and compensation committee, our governance principles and the Company’s code of ethics. Copies of these materials also are available, without charge, from Genworth Investor Relations, at the above address.
Our website also includes the charters of our audit committee, nominating and corporate governance committee, risk committee, management development and compensation committee, and technology committee, our governance principles and the Company’s code of ethics. Copies of these materials also are available, without charge, from Genworth Investor Relations, at the above address.
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.
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 reflected in their statutory financial statements to provide for claims and other expenses payable in the event of significant economic declines.
For additional information related to reinsurance, including reinsurance provided by Enact Re, see “—Business—Enact Segment” and note 7 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” 14 Table of Contents Ratings Financial Strength Ratings Ratings with respect to the financial strength of operating subsidiaries are an important factor in establishing the competitive position of insurance companies.
For additional information related to reinsurance, including reinsurance provided by Enact Re, see “—Business—Enact Segment” and note 7 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” 13 Table of Contents Ratings Financial strength ratings Ratings with respect to the financial strength of operating subsidiaries are an important factor in establishing the competitive position of insurance companies.
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.
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, health and long-term care insurance, paid time off, paid family leave, identity theft protection, financial planning and a retirement savings plan. • To further support our employees, we 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 long-term care insurance business continues to pursue significant premium rate increases and associated benefit reductions on its insurance in-force. In support of this initiative, we have developed processes that include experience studies to analyze emerging experience, reviews of in-force product performance, an assumption review process, and comprehensive monitoring and reporting.
Our Closed Block business continues to pursue significant premium rate increases and associated benefit reductions on its long-term care insurance in-force. In support of this initiative, we have developed processes that include experience studies to analyze emerging experience, reviews of in-force product performance, an assumption review process, and comprehensive monitoring and reporting.
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.
For additional information on the RBC of our legacy 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.
The updated standards differentiate between bonds held as available assets under PMIERs based on credit quality and liquidity. The updates also establish limits for assets backed by residential mortgages or commercial real estate to mitigate the impact if such assets lose value during periods of housing stress.
The updated standards differentiate between bonds held as available assets under PMIERs based on credit quality and liquidity. The updates also established limits for assets backed by residential mortgages or commercial real estate to mitigate the impact if such assets lose value during periods of housing stress.
See “Item 1A—Risk Factors—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.” Non-U.S.
See “Item 1A—Risk Factors— 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 .” 21 Table of Contents Non-U.S.
Virginia, the domestic state regulator for GLAIC, one of our principal life insurance subsidiaries, has adopted the model regulation. The NAIC developed a group capital calculation (“GCC”) tool using an RBC aggregation methodology for all entities within the insurance holding company system, including non-U.S. entities.
Virginia, the domestic state regulator for GLAIC, one of our principal life insurance subsidiaries, has adopted the model regulation. The NAIC has developed and implemented a group capital calculation (“GCC”) tool using an RBC aggregation methodology for all entities within the insurance holding company system, including non-U.S. entities.
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 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, 2025.
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.
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 potentially weakly capitalized companies for purposes of facilitating regulatory action.
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.
We have built and continue to actively engage strong community connections and partnerships with various 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.
Workplace and inclusion • We are committed to fostering an inclusive work environment that encourages employees to be their authentic selves.
Workplace inclusion • We are committed to fostering an inclusive work environment that encourages employees to be their authentic selves.
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.” 6 Table of Contents 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.
Each approved mortgage insurer is required to provide the GSEs with an annual certification and a quarterly report as to its compliance with PMIERs. As of December 31, 2024, Enact met the PMIERs financial and operational requirements.
Each approved mortgage insurer is required to provide the GSEs with an annual certification and a quarterly report as to its compliance with PMIERs. As of December 31, 2025 , Enact met the PMIERs financial and operational requirements.
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.
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.
Investment strategies, policy and risk management are closely monitored by Genworth Financial’s management investment committee and the risk committee of Genworth Financial’s Board of Directors. 16 Table of Contents Our primary investment objective is to meet our obligations to policyholders and contractholders while increasing value to our stockholders by investing in a diversified, high-quality portfolio, comprised primarily of income producing securities and other assets.
Investment strategies, policy and risk management are closely monitored by Genworth Financial’s management investment committee and the risk committee of Genworth Financial’s Board of Directors. Our primary investment objective is to meet our obligations to policyholders and contractholders while increasing value to our stockholders by investing in a diversified, high-quality portfolio, comprised primarily of income producing securities and other assets.
It imposes restrictions on the permissible use of credit report information and requires mortgage insurance companies to provide adverse action notices to consumers in the event an application for mortgage insurance is declined or offered at less than the best available rate for the loan program applied for due to information contained in a consumer’s credit report. Other U.S.
It imposes restrictions on the permissible use of credit report information and requires mortgage insurance companies to provide adverse action notices to consumers in the event an application for mortgage insurance is declined or offered at less than the best available rate for the loan program applied for due to information contained in a consumer’s credit report.
Subject to limited exceptions, RESPA precludes our U.S. mortgage insurance subsidiaries from providing services to mortgage lenders or other settlement service providers free of charge, charging fees for services that are lower than their reasonable or fair market value, and paying fees for services that others provide that are higher than their reasonable or fair market value.
Subject to limited exceptions, RESPA precludes our U.S. mortgage insurance subsidiaries from providing services 20 Table of Contents to mortgage lenders or other settlement service providers free of charge, charging fees for services that are lower than their reasonable or fair market value, and paying fees for services that others provide that are higher than their reasonable or fair market value.
All loans must pass through its eligibility rules to ensure proper discharge of loans not meeting its guidelines and to maintain thorough underwriting standards. Enact’s underwriting guidelines are largely consistent with those of the GSEs. Many of its customers use the GSEs’ automated loan underwriting systems for making credit determinations.
All loans must pass through its 7 Table of Contents eligibility rules to ensure proper discharge of loans not meeting its guidelines and to maintain thorough underwriting standards. Enact’s underwriting guidelines are largely consistent with those of the GSEs. Many of its customers use the GSEs’ automated loan underwriting systems for making credit determinations.
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.
Other U.S. 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.
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.
We cannot predict the effect of all the regulations adopted under the Dodd-Frank Act or other federal statutes on financial markets generally, or on our businesses specifically, the additional costs associated with compliance with such regulations, 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.
The NAIC implemented a regulatory framework through an actuarial guideline (“AG 48”) applicable to the use of captive insurers in connection with Regulation XXX and Regulation AXXX transactions.
The NAIC implemented a regulatory framework through Actuarial Guideline 48 (“AG 48”) applicable to the use of captive insurers in connection with Regulation XXX and Regulation AXXX transactions.
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.
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 allow deferred or reduced payments for borrowers experiencing financial hardship under certain circumstances.
Enact also periodically receives claim notices that request coverage for costs and expenses associated with items not covered under its policies, such as losses resulting from property damage to a covered home. Enact actively reviews claim notices to ensure it pays only for covered expenses.
Enact also periodically receives claim notices that request coverage for costs and expenses associated with items not covered under its policies, such as losses resulting from property damage to a covered home. Enact actively reviews claim notices in an effort to ensure it pays only for covered expenses.
Aggregate assessments levied against our U.S. insurers were not significant to our consolidated financial statements for the years ended December 31, 2024, 2023 and 2022.
Aggregate assessments levied against our U.S. insurers were not significant to our consolidated financial statements for the years ended December 31, 2025, 2024 and 2023.
U.S. state insurance laws and regulations (“Insurance Laws”) regulate most aspects of our U.S. insurance businesses, and our U.S. insurers are regulated by the insurance departments of the states in which they are domiciled and licensed. Our non-U.S. insurance operations are principally regulated by insurance regulatory authorities in the jurisdictions in which they are domiciled.
U.S. state insurance laws and regulations (“Insurance Laws”) regulate most aspects of our U.S. insurance businesses, and our U.S. insurers are regulated 15 Table of Contents by the insurance departments of the states in which they are domiciled and licensed. Our non-U.S. insurance operations are principally regulated by insurance regulatory authorities in the jurisdictions in which they are domiciled.
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.
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.
We continue to work closely with state regulators on our in-force long-term care insurance rate action plan (including increased premiums and associated benefit reductions) to achieve a shared goal of ensuring that our U.S. life insurance subsidiaries can honor their policyholder commitments in the future.
We continue to work closely with state regulators on our in-force long-term care insurance rate action plan (including increased premiums and associated benefit reductions) to achieve a shared goal of ensuring that our legacy insurance subsidiaries can honor their policyholder commitments in the future.
We have an enterprise risk management framework that includes risk management processes relating to strategic priorities and risks (including emerging risks), product development and pricing, management of in-force business, including certain mitigating strategies and claims risk management, credit risk management, asset-liability management, liquidity management, investment activities (including derivatives), model risk management, portfolio diversification, underwriting and loss mitigation, information systems, information technology risk management, data security and cybersecurity, business acquisitions and dispositions, operational risk assessment capabilities and overall operational risk management.
We have an enterprise risk management framework that includes risk management processes relating to strategic priorities and risks (including emerging risks); product development and pricing; management of in-force business (including certain mitigating strategies and claims risk management); credit risk management; asset-liability management; liquidity management; investment activities (including derivatives); model risk management; portfolio diversification; underwriting and loss mitigation; technology, data and cybersecurity, and artificial intelligence risks; business acquisitions and dispositions; operational risk assessment capabilities; and overall operational risk management.
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 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.
Enact expects to hold capital sufficiency well in excess of these requirements and does not expect the impact of these updates to be material. The ultimate impact of the PMIERs changes will be influenced by investment portfolio maturities, dispositions, reinvestments, and overall business and economic performance between now and the phase-in dates.
Enact expects to hold capital sufficiency well in excess of these requirements and does not expect the impact of these updates to be material to its sufficiency. The ultimate impact of the PMIERs changes will be influenced by investment portfolio maturities, dispositions, reinvestments, and overall business and economic performance through the phase-in dates.
From time to time, Congress and state legislatures consider additional legislation relating to privacy and other aspects of consumer information.
From time to time, Congress and state legislatures consider additional or amended legislation relating to privacy and other aspects of consumer information.
We align philanthropic efforts with our primary business focus areas, our commitment to sustainability and other programs that are important to our employees. • Please read our Sustainability Report to learn more about our collective accomplishments and plans to continue serving our customers, our colleagues, and our community.
We align philanthropic efforts with our primary business focus areas, our commitment to sustainability and other programs that are important to our employees. 26 Table of Contents • Please read our Sustainability Report to learn more about our collective accomplishments and plans to continue serving our customers, our colleagues, and our community.
We cannot currently predict the nature and timing of future developments, including with respect to climate risks. On October 7, 2023, California enacted two climate disclosure laws that will require entities that do business in the state and meet certain annual revenue thresholds to provide climate-related disclosures.
We cannot currently predict the nature and timing of future developments, including with respect to climate risks. 23 Table of Contents On October 7, 2023, California enacted two climate disclosure laws that will require U.S. entities that do business in the state and meet certain annual revenue thresholds to provide climate-related disclosures.
While it will take time to scale the business, we believe our investments in CareScout Services and CareScout Insurance will drive sustainable future growth for Genworth and are aligned with our overarching priority to maximize long-term value for our shareholders.
While it will take time to scale these businesses, we believe our investments in CareScout Services and CareScout Insurance will drive sustainable future growth for Genworth and are aligned with our overarching priority to maximize long-term value for our shareholders.
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.
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 746 as of December 31, 2025 .
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.
As we manage our legacy 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 other management actions, including our long-term care insurance in-force rate actions, to satisfy policyholder obligations.
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 20 Table of Contents state.
As of December 31, 2025, 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.
Since the initial authorization of Genworth Financial’s share repurchase program in May 2022 and through February 20, 2025, we have repurchased $565 million worth of shares of Genworth Financial’s common stock.
Since the initial authorization of Genworth Financial’s share repurchase program in May 2022 and through February 20, 2026, we have repurchased $828 million worth of shares of Genworth Financial’s common stock.
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.
The revisions to the MGI Model Act are extensive, including with respect to risk 19 Table of Contents concentration limits, capital and reserve requirements, reinsurance, underwriting practices and quality assurance.
Pursuant to its statutory authority, the FIO has been assessing how the insurance sector may mitigate climate risks and help achieve national climate-related goals. We expect the current U.S. Administration to bring about a new focus for many federal agencies, impacting rulemaking, supervision, examination and enforcement priorities.
In addition, pursuant to its statutory authority to monitor the U.S. insurance industry under the Dodd-Frank Act, the FIO has been assessing how the insurance sector may mitigate climate risks and help achieve national climate-related goals. We expect the current U.S. Administration to bring about a new focus for many federal agencies, impacting rulemaking, supervision, examination and enforcement priorities.
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.
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 legacy insurance subsidiaries and certain corporate functions, including data entry, transaction processing and functional support.
Starting January 1, 2025, the CIT imposes a new 15% corporate income tax on in-scope entities that are resident in Bermuda or have a Bermuda permanent establishment, without regard to any assurances that had previously been given pursuant to the Exempted Undertakings Tax Protection Act 1966.
Effective January 1, 2025, the Bermuda Corporate Income Tax Act of 2023 imposed a new 15% corporate income tax on in-scope entities that are resident in Bermuda or have a Bermuda permanent establishment, without regard to any assurances that had previously been given pursuant to the Exempted Undertakings Tax Protection Act 1966.
Telephone: 866-229-8413; 201-680-6685 (outside the United States and Canada); and 800-231-5469 (for hearing impaired). 30 Table of Contents
Telephone: 866-229-8413; 201-680-6578 (outside the United States and Canada); and 800-231-5469 (for hearing impaired). 27 Table of Contents
On June 4, 2024, our President and Chief Executive Officer certified to the New York Stock Exchange that he was not aware of any violation by us of the New York Stock Exchange’s corporate governance listing standards. Transfer Agent and Registrar Our transfer agent and registrar is Computershare, P.O. Box 43078, Providence, RI 02940-3078.
On June 6, 2025, our President and Chief Executive Officer certified to the New York Stock Exchange that he was not aware of any violation by us of the New York Stock Exchange’s corporate governance listing standards. Transfer Agent and Registrar Our transfer agent and registrar is Computershare, P.O. Box 43006, Providence, RI 02940-3006.
The proposed amendments would expand the definition of nonpublic personal information; add consumer rights to request access, correction and deletion of nonpublic personal information; and add requirements for contracts with third-party service providers. In November 2024, the PPWG received an extension until December 31, 2025 to finalize the amendments to Model Law 672.
The proposed amendments would expand the definition of nonpublic personal information; add consumer rights to request access, correction and deletion of nonpublic personal information; and add requirements for contracts with third-party service providers. In December 2025, the PPWG received an extension until the NAIC’s fall national meeting, scheduled for November 2026, to finalize the amendments to Model Law 672.
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.
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, operational risk, model risk, and technology, data and cybersecurity, and artificial intelligence risk.
The following table sets forth our exposure, represented by the amount of reinsurance recoverable measured at the locked-in discount rate owed by the principal reinsurers to our U.S. life insurance subsidiaries as of December 31, 2024: (Amounts in millions) Reinsurance recoverable UFLIC (1) $ 12,773 RGA Reinsurance Company 2,415 General Reinsurance Corporation 676 Riversource Life Insurance Company 326 SCOR Global Life USA Reinsurance Company 310 (1) We have several significant reinsurance transactions with Union Fidelity Life Insurance Company (“UFLIC”), an affiliate of General Electric Company, which now operates as GE Aerospace (“GE”), which results in a significant concentration of reinsurance risk.
The following table sets forth our exposure, represented by the amount of reinsurance recoverable measured at the locked-in discount rate owed by the principal reinsurers to our legacy insurance subsidiaries as of December 31, 2025 : (Amounts in millions) Reinsurance recoverable UFLIC (1) $ 12,592 RGA Reinsurance Company 2,629 General Reinsurance Corporation 711 Riversource Life Insurance Company 306 SCOR Global Life USA Reinsurance Company 275 ______________________ (1) We have several significant reinsurance transactions with Union Fidelity Life Insurance Company (“UFLIC”), an affiliate of General Electric Company, which now operates as GE Aerospace (“GE”), which results in a significant concentration of reinsurance risk.
In connection with these processes, our risk management team works closely with our long-term care insurance business to ensure proper governance and to better align the development of assumptions with the identified risks.
In connection with these processes, our risk management team works closely with our Closed Block business to ensure proper governance and to better align the development of assumptions with the identified risks.
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.
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.
The CPRA created the California Privacy Protection Agency to enforce the CCPA and to promulgate regulations thereunder, imposed additional obligations regarding the privacy notice and service provider contracts, created new requirements around the protection of sensitive personal information and eliminated certain exemptions for personal information collected in employment or business-to-business contexts.
The CPRA created the California Privacy Protection Agency to enforce the CCPA and to promulgate regulations thereunder, imposed additional obligations regarding privacy notices to be provided to consumers and service provider contracts, created new requirements related to the collection and use of sensitive personal information and eliminated certain exemptions for personal information collected in employment or business-to-business contexts.
Enact Holdings provided $289 million of capital returns to Genworth Holdings, Inc. (“Genworth Holdings”), our wholly owned subsidiary, in 2024. We believe capital returns from Enact will continue to benefit our shareholders by funding our strategic initiatives, including new CareScout products and services, as well as share repurchases and opportunistic debt reduction.
(“Genworth Holdings”), our wholly-owned subsidiary, in 2025. We believe capital returns from Enact will continue to benefit our shareholders by funding our strategic initiatives, including new CareScout products and services, as well as share repurchases and opportunistic debt reduction.
Premium payments for primary mortgage insurance coverage are typically made by the borrower and are referred to as borrower-paid mortgage insurance. Loans for which premiums are paid by the lender are referred to as lender-paid mortgage insurance. In either case, the payment of premium to Enact is generally the responsibility of the insured.
Loans for which premiums are paid by the lender are referred to as lender-paid mortgage insurance. In either case, the payment of premium to Enact is generally the responsibility of the insured.
On September 27, 2024, the governor of California signed into law final amendments to SB 261 and SB 253, which maintain the effective reporting dates but defer by six months to July 1, 2025, the deadline for the California Air Resources Board to develop and adopt regulations that implement SB 253, including specific reporting deadlines.
On September 27, 2024, the governor of California signed into law final amendments to SB 261 and SB 253, which maintained the effective reporting dates but deferred by six months to July 1, 2025, the deadline for CARB to develop and adopt regulations that implement SB 253, including specific reporting deadlines (which deadline CARB did not meet).
For certain risks related to our long-term care insurance business and in-force rate actions, see “Item 1A—Risk Factors—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.” See “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Long-Term Care Insurance segment” for selected operating performance measures related to our long-term care insurance in-force rate actions.
For certain risks related to our long-term care insurance products and in-force rate actions, see “Item 1A—Risk Factors— The inability to execute in-force management actions (including obtaining in-force rate actions) on our long-term care insurance products in Closed Block could have a material adverse impact on our business, including our results of operations and financial condition .” See “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Closed Block segment” for selected operating performance measures related to our long-term care insurance in-force rate actions.
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.
A s of February 24, 2026, E MICO 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 A2 (6 th highest of 21) Aaa to C Fitch Ratings, Inc. (“Fitch”) A (6 th highest of 21) AAA to C A.M.
Our long-term care insurance multi-year in-force rate action plan continues to be our most effective tool in supporting this strategic priority. We achieved an estimated cumulative economic benefit of approximately $31.2 billion, on a net present value basis, of approved rate actions since 2012 through 2024.
Our long-term care insurance multi-year in-force rate action plan continues to be our most effective tool in supporting this strategic priority. We achieved an estimated cumulative economic benefit of approximately $34.5 billion, on a net present value basis, of 5 Table of Contents approved rate increases and benefit reductions from 2012 through 2025.
Enact’s sales force primarily markets to financial institutions and mortgage originators that impose a requirement for mortgage insurance as part of the borrower’s financing. 9 Table of Contents Enact’s industry presence has enabled it to build active customer relationships with mortgage lenders across the United States.
Enact’s sales force utilizes a digital marketing program designed to expand its customer reach beyond traditional sales. Enact’s sales force primarily markets to financial institutions and mortgage originators that impose a requirement for mortgage insurance as part of the borrower’s financing. Enact’s industry presence has enabled it to build active customer relationships with mortgage lenders across the United States.
As part of our strategy for our long-term care insurance business, and in connection with our strategic priority to maintain self-sustaining, customer-centric legacy U.S. life insurance subsidiaries, we have been implementing, and expect to continue to pursue, significant premium rate increases and associated benefit reductions on older generation blocks of business in order to reduce the strain on earnings and capital.
As part of our strategy for the long-term care insurance products included in our Closed Block segment, and in connection with our strategic priority to maintain self-sustaining, customer-centric legacy insurance subsidiaries, we have 10 Table of Contents been implementing, and expect to continue to pursue, significant premium rate increases and associated benefit reductions in order to reduce the strain on the segment’s earnings and capital.
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.
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. In 2024, we completed the first phase of the conversion for our term and whole life insurance products.
Customers who purchase primary mortgage insurance select a specific coverage level for each insured loan. A customer may choose the coverage percentage established by a GSE in order to be eligible for purchase by that particular GSE or for loans not sold to the GSEs, the customer determines its desired coverage percentage.
Customers who purchase primary mortgage insurance select a specific coverage level for each insured loan. To be eligible for purchase by a GSE, a low down payment mortgage must comply with the coverage percentages established by that particular GSE. For loans not sold to the GSEs, the customer determines its desired coverage percentage.
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.
Our risk management framework includes seven key components: risk type key attributes; risk exposures; business strategy and planning; governance; risk assessment (both qualitative and quantitative); risk appetite and limits; and stress testing. Our risk management framework also includes the ongoing management, monitoring and reporting of material risks.
Enact Holdings and its mortgage insurance subsidiaries comprise, and can therefore generally be viewed as, our Enact segment, or commonly referred to as “Enact.” Strategic Priorities During 2024, we refined our strategic priorities to reflect our significant progress to date. Creating shareholder value We continue to create shareholder value through Enact’s growing market value and capital returns.
Enact Holdings and its mortgage insurance subsidiaries comprise, and can therefore generally be viewed as, our Enact segment, or commonly referred to as “Enact.” Strategic Priorities Create value We continue to create shareholder value through Enact’s growing market value and capital returns. Enact Holdings provided $407 million of capital returns to Genworth Holdings, Inc.
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.
Best A- (4 th highest of 13) A++ to D A s of February 24, 2026, ou r principal legacy insurance subsidiaries were rated in terms of financial strength by A.M. Best as follows: Company A.M.
The PPWG has released a revised draft of Model Law 672 and has a dedicated drafting group, which includes a representative from the life insurance industry, tasked with leading its model update effort.
The PPWG has a dedicated drafting group, which includes a representative from the life insurance industry, tasked with leading its model update effort. Throughout 2025, the PPWG released revised drafts of Model Law 672 by section in an iterative manner.
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.
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.
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.
The New York State Department of Financial Services (“NYDFS”) has stated that it expects domestic and foreign authorized 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.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf further revisions to the Basel III rules increase the capital requirements of banking organizations with respect to the residential mortgages Enact Holdings insures or do not provide sufficiently favorable treatment for the use of mortgage insurance purchased in respect of a bank’s origination and securitization activities, it could adversely affect the demand for mortgage insurance. 54 Table of Contents 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.
Biggest changeOur legacy 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.
Failure to successfully manage these risks in the development and implementation of our new lines of business or new products or services, specifically our inability to achieve anticipated business performance and financial results from CareScout, could have a material adverse effect on our business, results of operations and financial condition.
Failure to successfully manage these risks in the development and implementation of our new lines of business or new products or services, and specifically, the inability to achieve anticipated business performance and financial results from CareScout, could have a material adverse effect on our business, results of operations and financial condition.
We have implemented and maintain what we believe to be reasonable security controls and back-up measures, but despite this, our computer systems and those of our partners and third-party service providers have been, and may be in the future, vulnerable to physical or electronic intrusions, computer malware, malicious code or other attacks, system failures, programming errors, employee and third-party errors or wrongdoing, and similar disruption or adverse outcomes.
We have implemented and maintain what we believe to be reasonable security controls and back-up measures, but despite this, our computer systems and those of our partners and third-party service providers have been, and may in the future be, vulnerable to physical or electronic intrusions, computer malware, malicious code or other attacks, system failures, programming errors, employee and third-party errors or wrongdoing, and similar disruption or adverse outcomes.
Information assets include both information itself in the form of computer data, written materials, knowledge and supporting processes, and the information technology systems, networks, other electronic devices and storage media used to store, process, retrieve and transmit that information.
Information assets include both information itself in the form of computer data, written materials, knowledge and supporting processes, and the technology systems, networks, other electronic devices and storage media used to store, process, retrieve and transmit that information.
Many factors, and changes in these factors, can affect future experience, including but not limited to: interest rates; investment returns and volatility; economic and social conditions, such as inflation, unemployment, home price appreciation or depreciation, and health care experience (including the 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, claim incidence, duration of claim and benefit utilization rates); future premium rate increases and associated benefit reductions; expenses; and doctrines of legal liability and damage awards in litigation.
Many factors, and changes in these factors, can affect future experience, including but not limited to: interest rates; investment returns and volatility; economic and social conditions, such as inflation, unemployment, home price appreciation or depreciation, and health care experience (including the 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, claim incidence, duration of claim and benefit utilization rates); future premium rate increases and benefit reductions; expenses; and doctrines of legal liability and damage awards in litigation.
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.
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 products .
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.
These administrative powers include, but are not limited to: • licensing companies and agents to transact business; 43 Table of Contents • 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.
Any 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.
Any material weaknesses in internal control over financial reporting, such as those we have reported in the past, or any 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.
However, as we move further from the January 2021 transition date of the accounting guidance for long-duration insurance contracts adopted on January 1, 2023, we may see increased volatility from the uncapped cohorts, with more of the impact related to assumption updates and actual variances from expected experience recognized immediately in net income.
However, as we move further from the January 2021 transition date of the accounting guidance for long-duration insurance contracts adopted on January 1, 2023, we may see increased volatility from the uncapped cohorts, with more of the impact related to assumption updates and actual variances from expected experience recognized immediately in net income (loss).
Although future regulatory changes are unknown, we expect our regulators to continue to pursue new regulation or supplement existing regulations in the areas of environmental, social and corporate governance, as well as cybersecurity and artificial intelligence. Insurance regulatory authorities have broad administrative powers, which at times, are coordinated and communicated across regulatory bodies.
Although future regulatory changes are unknown, we expect certain of our regulators to continue to pursue new regulation or supplement existing regulations in the areas of environmental, social and corporate governance, as well as cybersecurity and artificial intelligence. Insurance regulatory authorities have broad administrative powers, which at times, are coordinated and communicated across regulatory bodies.
These obligations principally include operating expenses, including income taxes, and interest and principal payments on current and future borrowings. We began paying federal income taxes in 2023, resulting in lower intercompany cash tax payments retained by Genworth Holdings from its subsidiaries in 2024 as compared to the amounts retained during recent prior years.
These obligations principally include operating expenses, including income taxes, and interest and principal payments on current and future borrowings. We began paying federal income taxes in 2023, resulting in lower intercompany cash tax payments retained by Genworth Holdings from its subsidiaries in 2024 and 2025 as compared to the amounts retained during recent prior years.
The pricing and expected future profitability of our long-term care insurance, life insurance and annuity products are based in part on expected investment returns. Generally, life and long-term care insurance products are expected to initially produce positive cash flows as customers pay periodic premiums, which we invest as they are received.
The pricing and/or expected future profitability of our long-term care insurance, life insurance and annuity products are based in part on expected investment returns. Generally, life and long-term care insurance products are expected to initially produce positive cash flows as customers pay periodic premiums, which we invest as they are received.
Conversely, our profitable uncapped cohorts have to date had a more modest earnings impact related to assumption updates and variances between actual and expected experience, with a portion of the impact reflected in current period results and the remaining majority of the impact recognized over the life of the cohort.
Our profitable uncapped cohorts have had a more modest earnings impact related to assumption updates and variances between actual and expected experience, to date, with a portion of the impact reflected in current period results and the remaining majority of the impact recognized over the life of the cohort.
Interest rate fluctuations could also have an adverse effect on the results of our investment portfolio by increasing reinvestment risk and reducing our ability to achieve adequate investment returns. During periods of declining market interest rates, the interest we receive on variable interest rate investments decreases.
Interest rate fluctuations could have an adverse effect on the results of our investment portfolio by increasing reinvestment risk and reducing our ability to achieve adequate investment returns. During periods of declining market interest rates, the interest we receive on variable interest rate investments decreases.
Moreover, insurance regulators or the SEC could disagree with our interpretation of these new standards, which could cause us to incur significant costs and suffer reputational harm. In addition, the required adoption and effectiveness of future accounting and reporting standards may result in significant costs to implement.
Moreover, insurance regulators or the SEC could disagree with our interpretation of these new standards, which could cause us to incur significant costs and suffer reputational harm. In addition, the required adoption of future accounting and reporting standards may result in significant costs to implement.
See “—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.” We also manage risk and capital allocated to our long-term care insurance business through utilization of external reinsurance in the form of coinsurance.
See “—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.” We also manage risk and capital in our long-term care insurance products through utilization of external reinsurance in the form of coinsurance.
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.
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 . 30 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.
The long-term profitability of our products depends upon the accuracy of our long-term assumptions used to calculate our reserves and how our actual experience compares with our expected experience. If any of our long-term assumptions prove to be inaccurate, our reserves may be inadequate.
The long-term profitability of these products depends upon the accuracy of our long-term assumptions used to calculate our reserves and how our actual experience compares with our expected experience. If any of our long-term assumptions prove to be inaccurate, our reserves may be inadequate.
Any adopted future legislation or NAIC regulations may be more restrictive on our ability to conduct business than current regulatory requirements or may result in higher costs or increased statutory capital and reserve requirements.
Any adopted future legislation or regulations may be more restrictive on our ability to conduct business than current regulatory requirements or may result in higher costs or increased statutory capital and reserve requirements.
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.
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 legacy 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; 38 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.
We have agreed to new terms with almost all of our counterparties concerning our collateral arrangements given our low ratings and, in most cases, agreed to post excess collateral to maintain our existing derivative agreements.
We have agreed to terms with almost all of our counterparties concerning our collateral arrangements given our low ratings and, in most cases, agreed to post excess collateral to maintain our existing derivative agreements.
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 face intense competition in our industry for key employees with demonstrated ability, including actuarial, finance, legal, investment, risk, compliance, technology and other professional skills.
In this event, we would have to increase our long-term care insurance reserves by amounts that would likely be material and would result in a material adverse impact to earnings. Moreover, if we were to see unexpected, materially adverse experience, securing regulatory approval for all necessary premium rate increases and associated benefit reductions would become more difficult.
In this event, we would have to increase our long-term care insurance reserves in Closed Block by amounts that would likely be material and would result in a material adverse impact to earnings. Moreover, if we were to see unexpected, materially adverse experience, securing regulatory approval for all necessary premium rate increases and associated benefit reductions would become more difficult.
Any compromise of the security of our computer systems or those of our partners and third-party service providers that results in the unauthorized disclosure of customer personal information could damage our reputation in the marketplace, deter people from purchasing our products, subject us to regulatory scrutiny and significant civil and criminal liability and require us to incur significant technical, legal and other expenses.
Any compromise of the security of our computer systems or those of our partners and third-party service providers that results in the unauthorized disclosure of customer personal information or other sensitive business information could damage our reputation in the marketplace, deter people from purchasing our products, subject us to regulatory scrutiny and significant civil and criminal liability and require us to incur significant technical, legal and other expenses.
Furthermore, some states have refused to approve actuarially justified rate actions or have required that approved rate actions be phased in over an extended period of time. We will not be able to realize our future premium rate increases and associated benefit reductions in the future if we cannot obtain the required regulatory approvals.
Furthermore, some states have refused to approve actuarially justified rate actions or have required that approved rate actions be phased in over an extended period of time. We will not be able to implement our future premium rate increases and associated benefit reductions in the future if we cannot obtain the required regulatory approvals.
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.
Failure, by us or any third party on which we rely, to comply with applicable 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.
Although we consider the potential effects of inflation when setting premium rates, our premiums may not fully offset the effects of inflation and may result in our underpricing of the risks we insure. Given these inherent challenges, our ability to precisely forecast future claim costs for long-term care insurance is limited.
Although we considered the potential effects of inflation when setting premium rates, our premiums may not fully offset the effects of inflation and may result in our underpricing of the risks we insure. Given these inherent challenges, our ability to precisely forecast future claim costs for long-term care insurance is limited.
In addition, if we trigger downgrade provisions on risk-hedging or reinsurance arrangements, the counterparties to these arrangements may be able to terminate our arrangements with them or require us to take other measures, such as post additional collateral, contribute capital or provide letters of credit.
In addition, if we trigger downgrade provisions on risk-hedging or reinsurance arrangements, the counterparties to these arrangements may be able to terminate our arrangements with them and take possession of the collateral or require us to take other measures, such as post additional collateral, contribute capital or provide letters of credit.
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. Genetic testing research and discovery is advancing at a rapid pace.
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 products. Genetic testing research and discovery is advancing at a rapid pace.
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.
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, 2025. 28 Table of Contents Risk Factor Summary The following summarizes material risks to the Company and is qualified by the full description contained below.
Moreover, the new terms also removed the credit downgrade provisions from all of the insurance company master swap agreements and replaced them with a provision that allows the counterparty to terminate the derivative transaction if the RBC ratio of the applicable insurance company goes below a certain threshold.
Moreover, these terms also removed the credit downgrade provisions from all of the insurance company master swap agreements and replaced them with a provision that allows the counterparty to terminate the derivative transaction if the RBC ratio of the applicable insurance company goes below a certain threshold.
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.
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 54 Table of Contents 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.
Conversely, slower progressing medical advances, particularly in the areas of cognitive decline, could adversely impact our long-term care insurance business as policyholders may remain on claim for a long period of time resulting in higher severity and duration of claims.
Conversely, slower progressing medical advances, particularly in the areas of cognitive decline, could adversely impact our long-term care insurance products as policyholders may remain on claim for a long period of time resulting in higher severity and duration of claims.
The net premium ratio represents the portion of the gross premiums required to provide for all benefits and certain expenses in our long-term care insurance business. These capped cohorts are generally our older long-term care insurance policies, largely sold prior to 2003.
The net premium ratio represents the portion of the gross premiums required to provide for all benefits and certain expenses in our long-term care insurance products. These capped cohorts are generally our older long-term care insurance policies, largely sold prior to 2003.
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.
GAAP, we include assumptions for significant future premium rate increases and associated benefit reductions resulting from rate actions that have been approved, as well as assumptions for 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.
Specific to Enact Holdings, models may prove to be less predictive than expected for a variety of reasons, including changes in credit scoring and reporting processes, economic conditions that develop differently than forecasted, unique conditions for which we do not have good historical comparators, unexpected economic and unemployment conditions that arise, changes in the law or in PMIERs and the use of short-term financial metrics that do not reveal long-term trends.
Models may prove to be less predictive than expected for a variety of reasons, including changes in credit scoring and reporting processes, economic conditions that develop differently than forecasted, unique conditions for which we do not have good historical comparators, unexpected economic and unemployment conditions that arise, changes in the law or in PMIERs and the use of short-term financial metrics that do not reveal long-term trends.
Recent home price appreciation coupled with high interest rates has placed pressure on housing affordability. The pace of existing single-family home sales remains depressed as homeowners are reluctant to sell their house and pay significantly higher mortgage rates for a new one. Should home values decline, Enact Holdings could experience a higher frequency and severity of defaults.
Recent home price appreciation coupled with high interest rates has placed pressure on housing affordability. The pace of existing single-family home sales remains slow as homeowners are reluctant to sell their house and pay higher mortgage rates for a new one. Should home values decline, Enact Holdings could experience a higher frequency and severity of defaults.
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.
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.
The confidentiality, integrity, security and availability of information are essential to maintaining our reputation and ability to conduct our operations.
The confidentiality, integrity and availability of information are essential to maintaining our reputation and ability to conduct our operations.
In addition, during those periods, we reinvest the cash we receive as interest or return of principal on our investments in 44 Table of Contents lower-yielding high-grade instruments or in lower-credit instruments to maintain comparable returns. Issuers of fixed-income securities may decide to prepay their obligations in order to borrow at lower market rates, which exacerbates our reinvestment risk.
In addition, during those periods, we reinvest the cash we receive as interest or return of principal on our investments in lower-yielding high-grade instruments or in lower-credit instruments to maintain comparable returns. Issuers of fixed-income securities may decide to prepay their obligations in order to borrow at lower market rates, which exacerbates our reinvestment risk.
See “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” and notes 8, 9, 10 and 13 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional information.
See “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” and notes 8, 9, 10 and 11 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional information.
GE is obligated to maintain UFLIC’s RBC above a specified minimum level pursuant to a Capital Maintenance Agreement. If UFLIC becomes insolvent notwithstanding this agreement, and the amounts in the trust accounts are insufficient to pay UFLIC’s obligations to us, it could have a material adverse effect on our financial condition and results of operations.
GE is obligated to maintain UFLIC’s RBC above a specified minimum level pursuant to a Capital Maintenance Agreement. If UFLIC becomes insolvent notwithstanding this agreement, and the amounts in the trust accounts are insufficient to pay UFLIC’s obligations to us, it could have a material adverse effect on our financial condition 39 Table of Contents and results of operations.
If interest rates return to low levels, it would adversely affect the profitability of our long-term care insurance, life insurance and fixed annuity products. Low interest rates may also increase hedging costs on our in-force block of variable annuity products. In addition, certain statutory capital requirements for our U.S. life insurance subsidiaries are based on models that consider interest rates.
If interest rates return to low levels, it would adversely affect the profitability of our long-term care insurance, life insurance and fixed annuity products. Low interest rates may also increase hedging costs on our in-force block of variable annuity products. In addition, certain statutory capital requirements for our legacy insurance subsidiaries are based on models that consider interest rates.
For a further discussion of our liquidity, see “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” 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.
For a further discussion of our liquidity, see “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” 37 Table of Contents 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.
Moreover, our compensation plans cannot guarantee that the services of these employees will continue to be available to us. Changes in the composition of Enact Holdings’ business or undue concentration by customer or geographic region could cause a significant loss of business or adverse performance of a small segment of its portfolio.
Moreover, our compensation plans cannot guarantee that the services of these employees will continue to be available to us. 49 Table of Contents Changes in the composition of Enact Holdings’ business or undue concentration by customer or geographic region could cause a significant loss of business or adverse performance of a small segment of its portfolio.
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%.
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 in our Closed Block segment. Approximately 50% of our cohorts currently have net premium ratios capped at 100%.
We anticipate lower intercompany cash tax payments to be retained going forward as we utilized our remaining foreign tax credits in 2023. We manage our legacy U.S. life insurance subsidiaries on a standalone basis, and accordingly, we do not expect to receive dividends or other capital returns from them.
We anticipate lower intercompany cash tax payments to be retained going forward, as we utilized our remaining foreign tax credits in 2023. We manage our legacy insurance subsidiaries on a standalone basis, and accordingly, we do not expect to receive dividends or other capital returns from them.
In addition to PMIERs, mortgage insurers are required by certain states and other regulators to maintain a minimum amount of statutory capital relative to their level of risk in-force. While formulations of minimum capital vary in certain states, the most common measure applied allows for a maximum permitted risk-to-capital ratio of 25:1.
In addition to PMIERs, mortgage insurers are required by certain states and other regulators to maintain a minimum amount of statutory capital relative to their level of risk in-force. While formulations of minimum capital vary in certain 47 Table of Contents states, the most common measure applied allows for a maximum permitted risk-to-capital ratio of 25:1.
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.
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 48 Table of Contents Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency proposed for comment the Basel III Endgame rule.
Administration may implement through administrative reform, structural and other changes to the GSEs and the functioning of the secondary mortgage market. In the absence of legislation and actions by the U.S. Administration, the FHFA continues to move forward on administrative reform efforts to prepare the GSEs for the end of conservatorship, once fully and adequately capitalized.
Administration may implement through 45 Table of Contents administrative reform, structural and other changes to the GSEs and the functioning of the secondary mortgage market. In the absence of legislation and actions by the U.S. Administration, the FHFA continues to move forward on administrative reform efforts to prepare the GSEs for the end of conservatorship, once fully and adequately capitalized.
Currently, there are some state level restrictions related to an insurer’s access and use of genetic information, and periodically new genetic testing legislation is being introduced. However, further restrictions on the access and use of such medical information could create a mismatch between an assessed risk and the product pricing.
Currently, there are some state level restrictions related to an insurer’s access and use of genetic information, and periodically new genetic testing legislation is being introduced. However, further restrictions on the access and use of such medical information could create a mismatch between an assessed risk and the product pricing for CareScout Insurance.
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.
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.
A decline in home values typically makes it more difficult for borrowers to sell or refinance their homes, 46 Table of Contents increasing the likelihood of a default followed by a claim if borrowers experience a job loss or other life events that reduce their incomes or increase their expenses.
A decline in home values typically makes it more difficult for borrowers to sell or refinance their homes, increasing the likelihood of a default followed by a claim if borrowers experience a job loss or other life events that reduce their incomes or increase their expenses.
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.
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.
Enact Holdings also establishes incurred but not reported (“IBNR”) reserves for estimated losses incurred on loans in default that have not yet been reported by servicers. The sources of uncertainty affecting estimates are numerous and include both internal and external factors.
Enact Holdings also establishes incurred but not reported (“IBNR”) reserves for estimated losses incurred on loans in default that have not yet been 34 Table of Contents reported by servicers. The sources of uncertainty affecting estimates are numerous and include both internal and external factors.
Credit ratings, which rating agencies publish as measures of an entity’s ability to repay its indebtedness, are important to our ability to raise capital through the issuance of debt and other forms of 41 Table of Contents credit and to the cost of such financing. Our ratings are subject to periodic review and could be downgraded.
Credit ratings, which rating agencies publish as measures of an entity’s ability to repay its indebtedness, are important to our ability to raise capital through the issuance of debt and other forms of credit and to the cost of such financing. Our ratings are subject to periodic review and could be downgraded.
Enact—Mortgage Insurance Rising interest rates generally reduce the volume of new mortgage originations and refinances, which could cause new insurance written by Enact Holdings to decline materially and could thereby pressure earnings and 45 Table of Contents lead to an adverse effect on our results of operations and financial condition.
Enact—Mortgage Insurance Rising interest rates generally reduce the volume of new mortgage originations and refinances, which could cause new insurance written by Enact Holdings to decline materially and could thereby pressure earnings and lead to an adverse effect on our results of operations and financial condition.
In addition, some states have adopted or are considering adopting laws that would further limit increases in long-term care insurance premium rates beyond the statutes and regulations previously adopted in certain states, which would adversely impact our ability to achieve anticipated rate increases.
In addition, some states have adopted or are considering adopting laws that would further limit increases in long-term care insurance premium rates beyond the statutes and regulations they had previously adopted, which would adversely impact our ability to achieve anticipated rate increases.
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.
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 evolve and plays an ever-increasing role in our business.
Furthermore, our current plans do not include any additional minority sales resulting in Genworth owning less than 80% of Enact Holdings, and accordingly, 58 Table of Contents Enact Holdings’ ability to raise additional capital by issuing its stock to third parties is limited.
Furthermore, our current plans do not include any additional minority sales resulting in Genworth owning less than 80% of Enact Holdings, and accordingly, Enact Holdings’ ability to raise additional capital by issuing its stock to third parties is limited.
Additionally, the RBC ratio of our U.S. life insurance subsidiaries would be negatively impacted by future increases in our statutory reserves, including results of Actuarial Guideline 38, cash flow testing and assumption reviews, particularly in our long-term care and life insurance products.
Additionally, the RBC ratio of our legacy insurance subsidiaries would be negatively impacted by future increases in our statutory reserves, including results of Actuarial Guideline 38, cash flow testing and assumption reviews, particularly in our long-term care and life insurance products.
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.
If the frequency of lapses is higher than our expected reserve assumption, we would experience lower premiums and could experience higher benefit costs, as 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.
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.
For a discussion of PMIERs requirements and recent amendments to PMIERs, see “Regulation—Enact—Mortgage Insurance Regulation—Other U.S. 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.
An adverse change in our U.S. life insurance subsidiaries’ RBC ratios or our ability to meet other minimum regulatory requirements could cause rating agencies to downgrade the financial strength ratings of our insurance subsidiaries and the credit ratings of Genworth Holdings, which could have an adverse impact on our ability to execute our strategic priorities, including maintaining self-sustaining legacy U.S. life insurance subsidiaries and advancing CareScout’s new lines of business or new products and services, and would further restrict our ability to retain and write new business.
An adverse change in our legacy insurance companies’ RBC ratios or our ability to meet other minimum regulatory requirements could cause rating agencies to downgrade the financial strength ratings of our insurance subsidiaries and the credit ratings of Genworth Holdings, which could have an adverse impact on our ability to execute our strategic priorities, including maintaining self-sustaining legacy insurance subsidiaries and advancing CareScout’s new lines of business or new products and services, and would further restrict our ability to retain and write new business.
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.
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 53 Table of Contents falls below 80% of the home’s value.
Our businesses depend on our relationships with our customers, and in particular, our relationships with our largest lending customers in Enact Holdings. Customers place private mortgage insurance provided by Enact 55 Table of Contents Holdings directly on loans they originate and indirectly through purchases of loans that already have mortgage insurance coverage provided by Enact Holdings.
Our businesses depend on our relationships with our customers, and in particular, our relationships with our largest lending customers in Enact Holdings. Customers place private mortgage insurance provided by Enact Holdings directly on loans they originate and indirectly through purchases of loans that already have mortgage insurance coverage provided by Enact Holdings.
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.
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- 55 Table of Contents discrimination provisions even when medical information is available that indicates a purchaser is at higher risk.
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.
Its top five customers generated 33% of its new insurance written in 2025. 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.
We also perform cash flow testing or “asset adequacy analysis” separately for each of our U.S. life insurance subsidiaries on a statutory accounting basis. To the extent that the cash flow testing margin is negative in any of our U.S. life insurance subsidiaries, we would need to increase statutory reserves in that company, which would decrease our RBC ratios.
We also perform cash flow testing or “asset adequacy analysis” separately for each of our legacy insurance subsidiaries on a statutory accounting basis. To the extent that the cash flow testing margin is negative in any of our legacy insurance subsidiaries, we would need to increase statutory reserves in that company, which would decrease our RBC ratios.
As of December 31, 2024, Genworth Holdings had $790 million aggregate principal amount of outstanding debt that matures starting in 2034. Absent receiving dividends or other capital returns from Enact Holdings as anticipated, we would likely need to access additional liquidity through third-party sources.
As of December 31, 2025 , Genworth Holdings had $783 million aggregate principal amount of outstanding debt that matures starting in 2034. Absent receiving dividends or other capital returns from Enact Holdings as anticipated, we would likely need to access additional liquidity through third-party sources.
If this were to occur, the duration of payments made by us under certain forms of life insurance policies or annuity contracts would likely increase thereby reducing our profitability on those products.
If this were to occur, the duration of payments made by our legacy insurance subsidiaries under certain forms of life insurance policies or annuity contracts would likely increase thereby reducing our profitability on those products.
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.
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.
For example, our U.S. life insurance subsidiaries’ low financial strength ratings may reduce the availability of certain types of reinsurance and have made it more costly when it is available, as reinsurers have been less willing to take on credit risk in the volatile market.
For example, our legacy insurance subsidiaries’ low financial strength ratings may reduce the availability of certain types of reinsurance and have made it more costly when it is available, as reinsurers have been less willing to take on credit risk in the volatile market.
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.
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.
Moreover, absent the availability and affordability to enter into new credit risk transfer transactions, the ability of Enact Holdings to obtain PMIERs or statutory credit for new transactions would be adversely impacted.
Moreover, absent the availability and affordability to enter into 52 Table of Contents new credit risk transfer transactions, the ability of Enact Holdings to obtain PMIERs or statutory credit for new transactions would be adversely impacted.
The risk of a public health emergency, including from a pandemic, exposes us to risks similar to those experienced during COVID-19. A future natural or man-made disaster could disrupt our computer systems and our ability to conduct or process business, as well as lead to unexpected changes in mortgage borrower, policyholder and contractholder behavior.
The risk of a public health emergency, including from a pandemic, exposes us to risks similar to those experienced during the coronavirus pandemic (“COVID-19”). A future natural or man-made disaster could disrupt our computer systems and our ability to conduct or process business, as well as lead to unexpected changes in mortgage borrower, policyholder and contractholder behavior.
Given the claims history in our long-term care insurance business and its related pressure to reserve levels and earnings, and the expectation that claims will continue to rise due to the aging of the block and from higher incidence and severity, among other factors, our results of operations, capital levels, RBC and financial condition would be materially adversely affected absent future premium rate increases and associated benefit reductions.
Given the claims history in our long-term care insurance products in Closed Block and its related pressure to reserve levels and earnings, and the expectation that claims will continue to rise due to the aging of the block and from higher incidence and severity, among other factors, our results of operations, capital levels, RBC levels and financial condition would be materially adversely affected absent future premium rate increases and associated benefit reductions, and implementing other reduced benefit options.
Basel III Basel III, issued by the Basel Committee on Banking Supervision, established RBC and leverage capital requirements for most U.S. banking organizations (although banks with less than $10.0 billion in total assets may choose to comply with an alternative community bank leverage ratio framework established by the Federal Banking Agencies in 2019).
Basel III Basel III, issued by the Basel Committee on Banking Supervision following the financial crisis of 2008, established RBC and leverage capital requirements for most U.S. banking organizations (although banks with less than $10.0 billion in total assets may choose to comply with an alternative community bank leverage ratio framework established by the Federal Banking Agencies in 2019).
In our investment-related operations, we are subject to litigation involving commercial disputes with counterparties. We also from time to time have had, and may in the future have, disputes with reinsurance partners relating to the parties’ rights and obligations under reinsurance treaties and/or related 49 Table of Contents administration agreements.
We also from time to time have had, and may in the future have, disputes with reinsurance partners relating to the parties’ rights and obligations under reinsurance treaties and/or related administration agreements. In our investment-related operations, we are subject to litigation involving commercial disputes with counterparties.
As part of our cash flow testing process for our U.S. life insurance subsidiaries, we also consider incremental benefits from expected future in-force rate actions in our long-term care insurance products that help mitigate the impact of deteriorating experience.
As part of our cash flow testing process for our legacy insurance subsidiaries, we also consider incremental benefits from expected future in-force rate actions in our long-term care insurance products that help mitigate the impact of deteriorating experience.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeGenworth’s CISO and CRO, both members of management, support the cybersecurity risk oversight responsibilities of the Board and the risk committee and involve applicable management personnel in cybersecurity risk management. The risk committee receives periodic reports from the CISO and CRO on the Company’s technology and cybersecurity risk profiles, information security program and key cybersecurity initiatives.
Biggest changeGenworth’s Chief Information Officer (“CIO”), CISO and CRO, all members of management, support the cybersecurity risk oversight responsibilities of the Board and its committees and involve relevant management personnel in cybersecurity risk management.
In addition, the DSCP includes an incident response plan, which coordinates the activities we take to prepare for, detect, respond to and recover from cybersecurity incidents, which include processes to assess the materiality of the incident, escalate, contain, investigate and remediate the incident, as well as to comply with potentially applicable legal reporting and other obligations and mitigate reputational damage.
In addition, the DSCP includes an incident response plan, which coordinates the activities we take to prepare for, detect, respond to and recover from cybersecurity incidents, which include processes to assess the materiality of the incident, escalate, contain, investigate and remediate the incident, as well as to comply with potentially applicable legal reporting and other obligations and to mitigate reputational damage.
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.
Item 1C. Cybersecurity We have identified 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.
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”).
As part of our overall risk management, we have implemented a formal Data Security and Cybersecurity Program (the “DSCP”) which sets policy expectations, ensures broad coverage over technology and cybersecurity risks, integrates the 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”) Cybersecurity Framework.
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.
For additional information regarding the risks associated with these matters, see “Item 1A—Risk Factors.” 56 Table of Contents 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.
Key features of the DSCP include access controls, security training, system security testing, dedicated security personnel, security event monitoring, and when necessary, consultation with third-party data security experts.
Key features of the DSCP include access controls, security training, system security testing, dedicated security personnel, security event monitoring and regular consultation with third-party data security experts.
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).
In his more than 25 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).
Genworth’s CRO has served in information technology and risk management leadership roles for over twenty years, including oversight of enterprise risk management and operational risk, as well as oversight for financial reporting systems, operational and technology platforms, and testing and quality assurance programs.
Genworth’s CRO has served in technology and risk management leadership roles for over 20 years, including oversight of enterprise risk management and operational risk, as well as oversight for financial reporting systems, operational and technology systems, and testing and quality assurance programs.
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.
See “Item 1A—Risk Factors— Our computer systems, as well as those of our third-party service providers, have experienced failures or security compromises in the past and may do so again in the future, including as a result of cybersecurity incidents; we may experience issues from new and complex 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 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.
Additionally, the CRO follows a formal risk-based escalation process to notify the risk committee outside of the regular reporting cycle when actual or potential substantive cybersecurity risks or issues are identified. 57 Table of Contents Genworth’s CISO is an information technology and security professional with over 25 years of experience and 15 years of service at Genworth.
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.
Our information security team, overseen by our Chief Information Security Officer (“CISO”), conducts annual, role-based information security awareness training for employees. We also conduct periodic cybersecurity awareness training with management and the Board of Directors, including regular cybersecurity preparedness and response exercises.
He received a Bachelor of Science Degree in Decision Support Systems from Virginia Polytechnic Institute (Virginia Tech) and graduated from the Tuck Global Executive Leadership Program through Dartmouth in 2020. For more information about our CRO, see “Part III—Item 10—Directors, Executive Officers and Corporate Governance.”
He received a Bachelor of Science Degree in Decision Support Systems from Virginia Polytechnic Institute (Virginia Tech) and graduated from the Tuck Global Executive Leadership Program through Dartmouth in 2020.
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.
As of the date of this report, no known cybersecurity threats have had or, in our assessment, are reasonably likely to have a material adverse effect on our business strategy, results of operations or financial condition.
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.
In light of these risks, our Board of Directors is actively engaged in the oversight of the Company’s technology, which includes periodic briefings on cybersecurity threats and participation in cybersecurity preparedness exercises. Our Board of Directors has established a technology committee to assist in its oversight responsibilities relating to Genworth’s technology initiatives, strategy, investments and innovation, and the DSCP.
Removed
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.
Added
Furthermore, under its charter, the Board’s risk committee has primary responsibility for technology and cybersecurity risk oversight.
Removed
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.
Added
The technology committee receives regular reports from the CIO on technology initiatives and strategy, periodically reviews and oversees Genworth’s DSCP and receives regular updates, at least annually, related to data security and cybersecurity matters from the CISO. The risk committee receives periodic reports from the CRO on the Company’s risks related to technology and cybersecurity.
Removed
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.
Added
For more information about our CRO, see “Part III—Item 10—Directors, Executive Officers and Corporate Governance.” Genworth’s CIO has served in technology leadership roles for over 30 years, including oversight of technology strategy, business development, modernization and cybersecurity matters. He received a Bachelor of Science Degree in Finance from Virginia Commonwealth University.
Added
For more information about our CIO, see “Part III—Item 10—Directors, Executive Officers and Corporate Governance.”

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeEnact 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.
Biggest changeEnact 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. On December 11, 2025, Genworth sold its former headquarters facility in Richmond, Virginia, for a pre-tax gain of approximately $9 million.
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.
In addition, Genworth leases 11,000 square feet in Lynchburg, Virginia, and another 154,000 square feet of office space in four locations throughout the United States. One of Genworth’s international subsidiaries leases approximately 4,000 square feet of office space in Mexico.
Item 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.
Item 2. Properties Genworth leases a 174,000 square foot facility for use as its corporate headquarters in Richmond, Virginia and owns one facility in Lynchburg, Virginia with approximately 210,000 square feet, both of which are used by our Closed Block segment.
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.
Prior to the sale, the asset group was classified as held-for-sale and was included within other assets in our consolidated balance sheet as of December 31, 2024.

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 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.
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. 2020 2021 2022 2023 2024 2025 Genworth Financial, Inc. $ 100.00 $ 107.14 $ 139.95 $ 176.72 $ 184.92 $ 238.89 S&P 500 ® $ 100.00 $ 128.71 $ 105.40 $ 133.10 $ 166.40 $ 196.16 S&P 500 Insurance Index $ 100.00 $ 132.12 $ 145.50 $ 158.97 $ 201.61 $ 209.85 S&P SmallCap 600 Index $ 100.00 $ 126.82 $ 106.40 $ 123.48 $ 134.22 $ 142.30 S&P SmallCap 600 Insurance Index $ 100.00 $ 105.02 $ 87.62 $ 95.14 $ 122.56 $ 144.09 59 Table of Contents Dividends In November 2008, Genworth Financial’s Board of Directors suspended the payment of dividends to its shareholders indefinitely.
The timing and number of future shares repurchased under the program will depend on a variety of factors, including Genworth Financial’s stock price and trading volume, and general business and market conditions, among other factors. The authorization has no expiration date and may be modified, suspended or terminated at any time.
The timing and number of future shares repurchased under the share repurchase program will depend on a variety of factors, including Genworth Financial’s stock price and trading volume, and general business and market conditions, among other factors. The authorization has no expiration date and may be modified, suspended or terminated at any time.
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
For additional information on the share repurchase programs, including certain repurchases made subsequent to periods provided in the chart above, see “Part II— Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” Item 6. Reserved
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.
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 24, 2026 , we had 397 holders of record of our Common Stock.
In 2022, Genworth Financial’s Board of Directors approved a new share repurchase program. Any amounts used for the purpose of returning capital to Genworth Financial’s shareholders, including share repurchases or dividends if a new dividend policy is ultimately approved, will be dependent on many factors.
In 2025, Genworth Financial finalized purchases under its share repurchase program that began in 2022, and its Board of Directors approved a new share repurchase program. Any amounts used for the purpose of returning capital to Genworth Financial’s shareholders, including share repurchases or dividends if a new dividend policy is ultimately approved, will be dependent on many factors.
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.
Issuer Purchases of Common Stock The following table sets forth information regarding Genworth Financial’s share repurchases during the three months ended December 31, 2025: (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 programs Approximate dollar amount of shares that may yet be purchased under the program (1) October 1, 2025 through October 31, 2025 3,302,403 $ 8.76 3,302,403 $ 325 November 1, 2025 through November 30, 2025 5,251,328 $ 8.57 5,251,328 $ 280 December 1, 2025 through December 31, 2025 2,292,660 $ 8.72 2,292,660 $ 260 Total 10,846,391 10,846,391 _____________ (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.
On July 31, 2023, Genworth Financial’s Board of Directors authorized an additional $350 million of share repurchases under the existing share repurchase program. Under the program, share repurchases may be made at the Company’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans.
Under the new program, share repurchases may be made at Genworth’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans.
Added
On July 31, 2023, Genworth Financial’s Board of Directors authorized an additional $350 million of share repurchases under this existing program. Genworth Financial completed the repurchase of shares under the July 2023 authorization in October 2025.
Added
On September 18, 2025, Genworth Financial announced that its Board of Directors had authorized a new share repurchase program under which Genworth Financial may purchase up to $350 million of its outstanding common stock.

Item 7. Management's Discussion & Analysis

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

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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.
Biggest changeInterest rate performance had an unfavorable impact in 2025 compared to a favorable impact in 2024. 81 Table of Contents Segment results of operations The following table sets forth the results of operations relating to our Closed Block segment for the periods indicated: Years ended December 31, Increase (decrease) and percentage change (Amounts in millions) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Revenues: Premiums $ 2,508 $ 2,489 $ 2,670 $ 19 1 % $ (181) (7) % Net investment income 2,840 2,899 2,956 (59) (2) % (57) (2) % Net investment gains (losses) 103 46 65 57 124 % (19) (29) % Policy fees and other income 612 638 646 (26) (4) % (8) (1) % Total revenues 6,063 6,072 6,337 (9) — % (265) (4) % Benefits and expenses: Benefits and other changes in policy reserves 4,719 4,736 4,765 (17) — % (29) (1) % Liability remeasurement (gains) losses 313 153 587 160 105 % (434) (74) % Changes in fair value of market risk benefits and associated hedges 3 (13) (12) 16 123 % (1) (8) % Interest credited 386 453 503 (67) (15) % (50) (10) % Acquisition and operating expenses, net of deferrals 688 658 665 30 5 % (7) (1) % Amortization of deferred acquisition costs and intangibles 217 235 252 (18) (8) % (17) (7) % Total benefits and expenses 6,326 6,222 6,760 104 2 % (538) (8) % Income (loss) from continuing operations before income taxes (263) (150) (423) (113) (75) % 273 65 % Provision (benefit) for income taxes (31) (5) (62) (26) NM⁽¹⁾ 57 92 % Income (loss) from continuing operations (232) (145) (361) (87) (60) % 216 60 % Adjustments to income (loss) from continuing operations: Net investment (gains) losses (103) (46) (65) (57) (124) % 19 29 % Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) (5) (43) (22) 38 88 % (21) (95) % Expenses related to restructuring — 1 — (1) (100) % 1 NM⁽¹⁾ Taxes on adjustments 23 19 18 4 21 % 1 6 % Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ (317) $ (214) $ (430) $ (103) (48) % $ 216 50 % _______________________ (1) We define “NM” as not meaningful for increases or decreases greater than 200%.
Our profitable uncapped cohorts have to date had a more modest earnings impact related to assumption updates and actual variances from expected experience, as a portion of the impact is reflected in current period results with the remaining majority of the impact recognized over the life of the cohort.
Our profitable uncapped cohorts have had a more modest earnings impact related to assumption updates and actual variances from expected experience, to date, as a portion of the impact is reflected in current period results with the remaining majority of the impact recognized over the life of the cohort.
The liability for loss reserves is reviewed regularly, with changes in estimates of future claims recorded through net income. Estimation of losses is based on historical claim and cure experience and covered exposures and is inherently judgmental. Future developments may result in losses greater or less than the liability for loss reserves provided.
The liability for loss reserves is reviewed regularly, with changes in estimates of future claims recorded through net income (loss). Estimation of losses is based on historical claim and cure experience and covered exposures and is inherently judgmental. Future developments may result in losses greater or less than the liability for loss reserves provided.
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.
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 and distributions 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.
In the fourth quarter of 2024, liability remeasurement gains (losses) within net income included unfavorable cash flow assumption updates of $20 million primarily related to updates to healthy life and near-term benefit utilization assumptions to better align with recent experience, including cost of care inflation.
In the fourth quarter of 2024, liability remeasurement gains (losses) within net income (loss) included unfavorable cash flow assumption updates of $20 million primarily related to updates to healthy life and near-term benefit utilization assumptions to better align with recent experience, including cost of care inflation.
Genworth Financial has the right to appoint a majority of directors to the board of directors of Enact Holdings; however, actions taken by Enact Holdings and its board of directors are subject to and may be limited by the interests of Enact Holdings, including but not limited to, its use of capital for growth opportunities and regulatory requirements.
Genworth Financial has the right to appoint a majority of directors to Enact Holdings’ board of directors; however, actions taken by Enact Holdings and its board of directors are subject to and may be limited by the interests of Enact Holdings, including but not limited to, its use of capital for growth opportunities and regulatory requirements.
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.
In addition, we also expect 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.
These unfavorable impacts were partially offset by favorable assumption updates for future in-force rate action approvals given our current plans for rate increase filings and our recent experience regarding approvals and regulatory support.
These unfavorable impacts were partially offset by favorable assumption updates for future in-force rate action approvals given our plans for rate increase filings and our recent experience regarding approvals and regulatory support.
Use of non-GAAP measures Reconciliation of net income (loss) to adjusted operating income (loss) Our chief operating decision maker (“CODM”) evaluates performance and allocates resources based on a non-GAAP financial measure entitled “adjusted operating income (loss).” Our CODM evaluates adjusted 71 Table of Contents operating income (loss) as a key measure to assess performance and support new business initiatives because the measure more accurately reflects overall operating performance, as it minimizes the impact of macroeconomic volatility.
Use of non-GAAP measures Reconciliation of net income (loss) to adjusted operating income (loss) Our chief operating decision maker (“CODM”) evaluates performance and allocates resources based on a non-GAAP financial measure entitled “adjusted operating income (loss).” Our CODM evaluates adjusted operating income (loss) as a key measure to assess performance and support new business initiatives because the measure more accurately reflects 63 Table of Contents overall operating performance, as it minimizes the impact of macroeconomic volatility.
As a result, the percentages shown may differ from an effective tax rate calculated using rounded numbers. • Net income attributable to noncontrolling interests.
As a result, the percentages shown may differ from an effective tax rate calculated using rounded numbers. • Net income (loss) attributable to noncontrolling interests.
Management regularly monitors and reports new insurance written for our Enact segment as a measure of volume of new business generated in a period.
Management also regularly monitors and reports new insurance written for our Enact segment as a measure of volume of new business generated in a period.
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.
Additionally, we have observed an increase in the cost of care in our long-term care insurance products, 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.
In-force rate actions represent the remaining premium rate increases and associated benefit reductions not yet achieved in our long-term care insurance multi-year in-force rate action plan and are based on our best estimate given our current plans for rate increase filings and our historical experience regarding rate increase approvals.
In-force rate actions represent the remaining premium rate increases and associated benefit reductions not yet achieved in our long-term care insurance multi-year in-force rate action plan in Closed Block and are based on our best estimate given our current plans for rate increase filings and our historical experience regarding rate increase approvals.
The unfavorable 88 Table of Contents impacts were also partially offset by favorable updates to our short-term incidence assumptions for IBNR claims, reducing sufficiency held through a period of heightened uncertainty around incidence during and immediately following COVID-19.
The unfavorable impacts were also partially 96 Table of Contents offset by favorable updates to our short-term incidence assumptions for IBNR claims, reducing sufficiency held through a period of heightened uncertainty around incidence during and immediately following COVID-19.
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.
Policy fees and other income consist 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.
For a discussion of certain risks associated with our liquidity and dependency on dividends paid by Enact Holdings, see “Item 1A—Risk Factors—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,” and “Item 1A—Risk Factors—Our sources of capital have become more limited, and under certain conditions we may need to seek additional capital on unfavorable terms.” During 2024 and 2023, Genworth Holdings repurchased $66 million and $32 million, respectively, principal amount of its debt.
For a discussion of certain risks associated with our liquidity and dependency on dividends paid by Enact Holdings, see “Item 1A—Risk Factors— 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 ,” and “Item 1A—Risk Factors— Our sources of capital have become more limited, and under certain conditions we may need to seek additional capital on unfavorable terms .” During 2025 and 2024 , Genworth Holdings repurchased $7 million and $66 million , respectively, principal amount of its debt.
In 2024, given the current interest rate environment, Genworth Holdings entered into an interest rate swap designed to hedge the variable interest payments on $100 million aggregate principal amount of its floating rate 114 Table of Contents junior subordinated notes due in 2066 (“2066 Notes”), locking in an approximate 5.5% fixed interest rate for a period of five years from the hedge origination date.
In 2024, given the current interest rate environment, Genworth Holdings entered into an interest rate swap designed to hedge the variable interest payments on $100 million aggregate principal amount of its floating rate junior subordinated notes due in 2066 (“2066 Notes”), locking in an approximate 5.5% fixed interest rate for a period of five years from the hedge origination date.
Genworth Holdings’ guarantees Genworth Holdings has provided a limited guarantee of up to $175 million, subject to adjustments, to one of its insurance subsidiaries to support its mortgage insurance business in Mexico. In January 2022, Genworth Holdings terminated this limited guarantee in regard to new business.
Genworth Holdings has provided a limited guarantee of up to $175 million, subject to adjustments, to one of its insurance subsidiaries to support its mortgage insurance business in Mexico. In January 2022, Genworth Holdings terminated this limited guarantee in regard to new business.
The timing and number of future shares repurchased under the program will depend on a variety of factors, including Genworth Financial’s stock price and trading volume, and general business and market conditions, among other factors. The authorization has no expiration date and may be modified, suspended or terminated at any time.
The timing and number of future shares repurchased under the new share repurchase program will depend on a variety of factors, including Genworth Financial’s stock price and trading volume, and general business and market conditions, among other factors. The authorization has no expiration date and may be modified, suspended or terminated at any time.
In addition, none of Genworth Financial’s direct or indirect subsidiaries, other than Genworth Holdings, are issuers or guarantors of any guaranteed securities. Therefore, in 116 Table of Contents accordance with Rule 13-01 of Regulation S-X, we are permitted, and we elected, to exclude the summarized financial information for both the issuer and guarantor of the registered securities.
In addition, none of Genworth Financial’s direct or indirect subsidiaries, other than Genworth Holdings, are issuers or guarantors of any guaranteed securities. Therefore, in accordance with Rule 13-01 of Regulation S-X, we are permitted, and we elected, to exclude the summarized financial information for both the issuer and guarantor of the registered securities.
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.
Investments and Derivative Instruments Trends and conditions Investments During the year ended December 31, 2025 , our investment portfolio was impacted, and we believe will continue to be impacted, by the following macroeconomic trends: • The U.S.
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.
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. • Changes in fair value of market risk benefits and associated hedges .
Genworth Holdings may move below or above this targeted cash buffer during any given quarter due to the timing of cash outflows and inflows or as a result of planned future actions. Management of Genworth Financial continues to evaluate Genworth Holdings’ target level of liquidity as circumstances warrant.
Genworth Holdings may move below or above this targeted cash buffer during any given quarter due to the timing of cash outflows and inflows or as a result of planned future actions. 103 Table of Contents Management of Genworth Financial continues to evaluate Genworth Holdings’ target level of liquidity as circumstances warrant.
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.
The liability remeasurement loss in our life insurance products in 2023 was principally driven by unfavorable cash flow assumption 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.
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.
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.” Results of our life insurance and annuity products and the financial condition of our long-term care insurance products are also impacted by interest rates.
The tables below set forth the dispersion of direct primary case reserves and primary delinquency rates for the 10 largest states and the 10 largest Metropolitan Statistical Areas (“MSA”) or Metro Divisions (“MD”) by Enact’s primary risk in-force as of the dates indicated.
The tables below set forth the dispersion of direct primary case reserves and primary delinquency rates for the 10 largest states and the 10 largest Metropolitan Statistical Areas (“MSA”) or Metro 76 Table of Contents Divisions (“MD”) by Enact’s primary risk in-force as of the dates indicated.
The change in the liability for future policy benefits, at the locked-in discount rate, resulting from cash flow assumption updates and variances between actual and expected experience is reflected as liability remeasurement (gains) losses in the consolidated statements of income.
The change in the liability for future policy benefits, at the locked-in discount rate, resulting from cash flow assumption updates and actual variances from expected experience is reflected as liability remeasurement (gains) losses in the consolidated statements of operations .
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).
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).
Pre-foreclosure sales, acquisitions and other early workout and claim administration actions help to reduce overall claim severity. Enact’s average primary mortgage insurance claim severity was 99%, 97% and 94% for the years ended December 31, 2024, 2023 and 2022, respectively, and was impacted by low claim volumes and lifetime home price appreciation.
Pre-foreclosure sales, acquisitions and other early workout and claim administration actions help to reduce overall claim severity. Enact’s average primary mortgage insurance claim severity was 96%, 99% and 97% for the years ended December 31, 2025, 2024 and 2023, respectively, and was impacted by low claim volumes and lifetime home price appreciation.
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.
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. 61 Table of Contents • Interest credited .
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.
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, 2025 and 2024.
As of December 31, 2024, 6% of our total fixed maturity securities related to Level 3 fixed maturity securities valued using internal pricing models.
As of December 31, 2025 , 6% of our total fixed maturity securities related to Level 3 fixed maturity securities valued using internal pricing models.
For information on discounted and undiscounted expected future benefit payments, see note 8 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data.” We also expect renewal premiums on the in-force block of our legacy long-term care insurance business to decline over time as the block runs off and as policyholders elect benefit reductions in connection with our in-force rate actions and legal settlements; however, we expect this decline to be partially offset by future approved rate actions.
For information on discounted and undiscounted expected future benefit payments, see note 8 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data.” We also expect renewal premiums on the in-force block of our long-term care insurance products in Closed Block to decline over time as the block runs off and as policyholders elect benefit reductions in connection with our in-force rate actions; however, we expect this decline to be partially offset by future approved rate actions.
We consider insurance in-force and risk in-force to be measures of our Enact segment’s operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.
We consider insurance in-force and risk in-force to be measures of Enact’s operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.
Revenues For a discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.” Benefits and expenses Acquisition and operating expenses, net of deferrals, increased primarily from higher expenses related to CareScout growth initiatives, as well as higher employee-related expenses.
Revenues For a discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.” Benefits and expenses Acquisition and operating expenses, net of deferrals, increased primarily from higher expenses related to CareScout growth initiatives in 2025.
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.
Given the challenging macroeconomic environment in 2024 and 2025 , 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 products, we have observed an increase in the cost of care due in part to elevated inflation.
The liability remeasurement gain in 2024 was primarily due to a $58 million model refinement related to certain universal life insurance products with secondary guarantees, partially offset by $28 million of unfavorable updates to our mortality assumptions for universal life insurance contracts and our interest rate assumptions.
The liability remeasurement gain in 2024 included a $58 million model refinement related to certain universal life insurance products with secondary guarantees, partially offset by $28 million of unfavorable updates to our mortality assumptions for universal life insurance contracts and our interest rate assumptions.
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.
Based on estimated statutory results as of December 31, 2025 , in accordance with applicable dividend restrictions, Enact Holdings’ U.S. mortgage insurance subsidiaries could pay dividends from unassigned surplus of approximately $3 million in 2026 without affirmative regulatory approval.
Based on the risk in-force of policies subject to the guarantee, we estimate that Genworth Holdings’ exposure under the guarantee was approximately $145 million as of December 31, 2024. We believe this insurance subsidiary has adequate reserves to cover its underlying obligations.
Based on the risk in-force of policies subject to the guarantee, we estimate that Genworth Holdings’ exposure under the guarantee was approximately $135 million as of December 31, 2025. We believe this insurance subsidiary has adequate reserves to cover its underlying obligations.
The unfavorable updates in 2023 were partially offset by net favorable impacts related to a ceded reinsurance transaction. Changes in fair value of market risk benefits and associated hedges .
These unfavorable updates were partially offset by net favorable impacts related to a ceded reinsurance transaction. Changes in fair value of market risk benefits and associated hedges.
We manage our legacy U.S. life insurance subsidiaries on a standalone basis and accordingly, do not expect to receive any dividends or other returns of capital from them.
We manage our legacy insurance subsidiaries on a standalone basis and accordingly, do not expect to receive any dividends or other returns of capital from them.
Management also regularly monitors and reports a loss ratio and an expense ratio for our Enact segment. We consider the loss ratio, which is the ratio of benefits and other changes in policy reserves to net earned premiums, to be a measure of underwriting performance. The expense ratio is the ratio of general expenses to net earned premiums.
Loss and expense ratios Management regularly monitors and reports a loss ratio and an expense ratio for our Enact segment. We consider the loss ratio, which is the ratio of benefits and other changes in policy reserves to net earned premiums, to be a measure of underwriting performance.
(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.
(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 $(8) million, $(30) million and $(10) million for the years ended December 31, 2025, 2024 and 2023, respectively.
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.
As of December 31, 2025 , our combined holdings in the 10 corporate issuers to which we had the greatest exposure was $1.6 billion , which was approximately 3% of our total cash, cash equivalents and invested assets.
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.
Based upon fair value, public and private fixed maturity securities represented 68% and 32% , respectively, of total fixed maturity securities as of both December 31, 2025 and 2024 . We diversify our corporate securities by industry and issuer.
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.
The exposure to the largest single corporate issuer held as of December 31, 2025 was $256 million , which was less than 1% of our total cash, cash 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.
Based upon FICO at loan closing, the weighted average FICO score of Enact’s primary insurance in-force was 745 as of December 31, 2024. 84 Table of Contents Delinquent loans and claims Enact’s delinquency management process begins with notification by the loan servicer of a delinquency on an insured loan.
Based upon FICO at loan closing, the weighted average FICO score of Enact’s primary insurance in-force was 746 as of December 31, 2025 . 75 Table of Contents Delinquent loans and claims Enact’s delinquency management process begins with notification by the loan servicer of a delinquency on an insured loan.
Although new claim counts on certain of our oldest long-term care insurance blocks of business have reached their peak claim years and will decrease as the blocks run off, we expect overall claims costs to continue to increase as the approximately 609,000 insured individuals in our two largest blocks, Choice I and Choice II, with average attained ages of 77 and 74, respectively, reach their peak claim years, which are over age 85.
Although new claim counts on certain of our oldest long-term 79 Table of Contents care insurance blocks of business have reached their peak claim years and will decrease as the blocks run off, we expect overall claims costs to continue to increase as the approximately 592,000 insured individuals in our two largest blocks, Choice I and Choice II, with average attained ages of 78 and 75, respectively, reach their peak claim years, which are age 85 and over.
(2) Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed. % of primary risk in-force as of December 31, 2024 % of direct primary case reserves as of December 31, 2024 (1) Delinquency rate as of December 31, 2024 2023 2022 By MSA or MD: Phoenix, AZ MSA 3 % 3 % 2.41 % 2.01 % 1.83 % Chicago-Naperville, IL MD 3 % 4 % 3.29 % 2.88 % 2.84 % Atlanta, GA MSA 3 % 3 % 3.02 % 2.40 % 2.42 % New York, NY MD 2 % 6 % 3.53 % 3.60 % 3.75 % Houston, TX MSA 2 % 3 % 3.58 % 2.67 % 2.60 % Dallas, TX MD 2 % 2 % 2.38 % 1.92 % 1.86 % Washington-Arlington, DC MD 2 % 2 % 2.03 % 2.01 % 1.85 % Riverside-San Bernardino, CA MSA 2 % 3 % 3.25 % 2.83 % 2.89 % Los Angeles-Long Beach, CA MD 2 % 2 % 2.65 % 2.39 % 2.18 % Denver-Aurora-Lakewood, CO MSA 2 % 1 % 1.38 % 1.12 % 1.12 % (1) Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves.
(2) Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed. % of primary risk in-force as of December 31, 2025 % of direct primary case reserves as of December 31, 2025⁽¹⁾ Delinquency rate as of December 31, 2025 2024 2023 By MSA or MD: Phoenix, AZ MSA 3 % 3 % 2.85 % 2.41 % 2.01 % Chicago-Naperville, IL MD 3 % 4 % 3.31 % 3.29 % 2.88 % Atlanta, GA MSA 3 % 3 % 3.59 % 3.02 % 2.40 % Dallas, TX MD 2 % 2 % 2.49 % 2.38 % 1.92 % Houston, TX MSA 2 % 3 % 3.54 % 3.58 % 2.67 % New York, NY MD 2 % 5 % 3.70 % 3.53 % 3.60 % Washington-Arlington, DC MD 2 % 2 % 2.62 % 2.03 % 2.01 % Riverside-San Bernardino, CA MSA 2 % 3 % 3.53 % 3.25 % 2.83 % Los Angeles-Long Beach, CA MD 2 % 3 % 3.26 % 2.65 % 2.39 % Denver-Aurora-Lakewood, CO MSA 2 % 1 % 1.85 % 1.38 % 1.12 % _______________________ (1) Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves.
In the fourth quarter of 2024, our annual review of cash flow assumptions did not have a significant impact on liability remeasurement gains (losses) within net income for our life insurance products.
In the fourth quarters of 2025 and 2024, our annual review of cash flow assumptions did not have a significant impact on liability remeasurement gains (losses) within net income (loss) for our life insurance products.
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.
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 $44.1 billion, at the locked-in discount rate, for our long-term care insurance products as of December 31, 2025.
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.
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.
Our insurance subsidiaries’ principal cash inflows from operations are derived from premiums, annuity deposits and insurance and investment product fees and other income, including commissions, cost of insurance, mortality, expense and surrender charges, contract underwriting fees, investment management fees, investment income and dividends and distributions from their subsidiaries.
Our insurance subsidiaries’ principal cash inflows from operating activities are derived from premiums, annuity deposits and insurance and investment product fees and other income, including commissions, cost of insurance, mortality, expense and surrender charges, contract underwriting fees, investment management fees, investment income, and 104 Table of Contents dividends and distributions from their subsidiaries.
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.
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) 2025 2024 2025 vs. 2024 Present value of expected future policy benefits (1) $ 2,322 $ 2,518 $ (196) (8) % _______________________ (1) At the locked-in discount rate.
The primary persistency rate was 83% and 85% for the years ended December 31, 2024 and 2023, respectively. Total risk in-force increased primarily as a result of higher primary insurance in-force. New insurance written Changes in new insurance written are primarily impacted by the size of the mortgage insurance market and Enact’s market share.
The primary persistency rate was 82% and 83% for the years ended December 31, 2025 and 2024 , respectively. Total risk in-force increased primarily as a result of higher primary insurance in-force. 73 Table of Contents New insurance written Changes in new insurance written are primarily impacted by the size of the mortgage insurance market and Enact’s market share.
For a discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.” 90 Table of Contents Benefits and expenses Benefits and other changes in policy reserves decreased primarily due to lower net premiums collected resulting from benefit reduction elections made by policyholders in connection with our in-force rate actions and legal settlements and from policy terminations.
For a discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.” Benefits and expenses Benefits and other changes in policy reserves • Our long-term care insurance products decreased $28 million primarily due to lower net premiums collected resulting from benefit reduction elections made by policyholders in connection with our in-force rate actions and legal settlements and from policy terminations.
In-force rate actions and legal settlements Given the ongoing challenges in our long-term care insurance business, we continue to pursue initiatives to improve the risk and profitability profile of our business, including premium rate increases and associated benefit reductions on our in-force policies.
In-force management actions Given the ongoing challenges in our long-term care insurance products, we continue to pursue initiatives to improve the risk and profitability profile of our business, including premium increases and benefit reductions on our in-force policies.
A hypothetical decrease of 10% to our mortality assumption would have an unfavorable impact of $60 million on liability remeasurement gains (losses) within pre-tax income for the year ended December 31, 2024.
A hypothetical decrease of 10% to our mortality assumption would have an unfavorable impact of approximately $50 million on liability remeasurement gains (losses) within pre-tax income (loss) for the year ended December 31, 2025 .
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.
Under the new program, share repurchases may be made at Genworth’s discretion from time to time in open market transactions, privately negotiated transactions or other means, including through Rule 10b5-1 trading plans.
As of December 31, 2024, Genworth Holdings had $790 million aggregate principal amount of outstanding debt, with no maturities due until June 2034.
As of December 31, 2025 , Genworth Holdings had $783 million aggregate principal amount of outstanding debt, with no maturities due until June 2034.
Because our clearing agents serve as guarantors of our obligations to the CME, the customer agreements contain broad termination provisions that are not specifically dependent on ratings. • As of December 31, 2024, $12.6 billion notional of our derivatives portfolio was in bilateral OTC derivative transactions pursuant to which we have posted aggregate independent amounts of $554 million and are holding collateral from counterparties in the amount of $11 million.
Because our clearing agents serve as guarantors of our obligations 90 Table of Contents to the CME, the customer agreements contain broad termination provisions that are not specifically dependent on ratings. • As of December 31, 2025 , $12.7 billion notional of our derivatives portfolio was in bilateral OTC derivative transactions pursuant to which we have posted aggregate independent amounts of $585 million and are holding collateral from counterparties in the amount of $17 million .
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.
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 for the long-term care insurance products included in our Closed Block segment.
While we expect renewal premiums to decline over time as the block runs off, benefit reductions elected by policyholders in connection with our in-force rate actions and legal settlements have accelerated that decline.
While we expect renewal premiums to decline over time as the block runs off, benefit reductions elected by policyholders in connection with our in-force rate actions and legal settlements have accelerated that decline. However, we expect this decline to be partially offset by future approved rate actions.
Delinquency rates are shown by region based upon the location of the underlying property, rather than the location of the lender. % of primary risk in-force as of December 31, 2024 % of direct primary case reserves as of December 31, 2024 (1) Delinquency rate as of December 31, 2024 2023 2022 By State: California 12 % 12 % 2.53 % 2.22 % 2.09 % Texas 9 % 9 % 2.64 % 2.22 % 2.12 % Florida (2) 8 % 12 % 3.67 % 2.39 % 2.54 % New York (2) 5 % 10 % 3.30 % 3.05 % 2.95 % Illinois (2) 4 % 6 % 2.96 % 2.61 % 2.54 % Arizona 4 % 3 % 2.35 % 1.93 % 1.78 % Michigan 4 % 3 % 2.14 % 1.94 % 1.79 % Georgia 3 % 4 % 3.02 % 2.23 % 2.23 % North Carolina 3 % 2 % 2.14 % 1.56 % 1.59 % Pennsylvania 3 % 3 % 2.17 % 2.19 % 2.17 % (1) Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves.
Delinquency rates are shown by region based upon the location of the underlying property rather than the location of the lender. % of primary risk in-force as of December 31, 2025 % of direct primary case reserves as of December 31, 2025⁽¹⁾ Delinquency rate as of December 31, 2025 2024 2023 By State: California 12 % 13 % 2.84 % 2.53 % 2.22 % Texas 9 % 9 % 2.81 % 2.64 % 2.22 % Florida (2) 8 % 13 % 3.35 % 3.67 % 2.39 % New York (2) 5 % 9 % 3.38 % 3.30 % 3.05 % Illinois (2) 4 % 5 % 3.15 % 2.96 % 2.61 % Arizona 4 % 4 % 2.78 % 2.35 % 1.93 % Michigan 4 % 3 % 2.33 % 2.14 % 1.94 % Georgia 3 % 4 % 3.33 % 3.02 % 2.23 % North Carolina 3 % 2 % 2.07 % 2.14 % 1.56 % Pennsylvania 3 % 3 % 2.29 % 2.17 % 2.19 % _______________________ (1) Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves.
The market and underwriting conditions, including the mortgage insurance pricing environment, are within Enact’s risk adjusted return appetite, enabling it to write new business at returns it views as attractive. Mortgage insurance portfolio New insurance written of $51.0 billion in 2024 decreased 4% compared to 2023.
The market and underwriting conditions, including the mortgage insurance pricing environment, are within Enact’s risk-adjusted return appetite, enabling it to write new business at returns it views as attractive. Mortgage insurance portfolio New insurance written of $51.5 billion in 2025 increased 1% compared to 2024.
Genworth Holdings had $294 million and $350 million of unrestricted cash and cash equivalents as of December 31, 2024 and 2023, respectively. The decrease was principally driven by repurchases of Genworth Financial’s common stock, as well as interest payments on and repurchases of Genworth Holdings’ debt, partially offset by capital returns from Enact Holdings.
Genworth Holdings had $234 million and $294 million of unrestricted cash and cash equivalents as of December 31, 2025 and 2024 , respectively. The decrease was principally driven by repurchases of Genworth Financial’s common stock, capital contributions to CareScout and interest payments on Genworth Holdings’ debt, partially offset by capital returns from Enact Holdings.
Short-term investments decreased from net maturities and sales. Derivatives The activity associated with derivative instruments can generally be measured by the change in notional value over the periods presented. However, for fixed indexed annuity and indexed universal life embedded derivatives, the change between periods is best illustrated by the number of policies.
Short-term investments increased from net purchases in 2025. 94 Table of Contents Derivatives The activity associated with derivative instruments can generally be measured by the change in notional value over the periods presented. However, for fixed indexed annuity and indexed universal life embedded derivatives, the change between periods is best illustrated by the number of policies.
For example, based on Enact’s actual experience during the three-year period ended December 31, 2024, a quarterly change of 4% in its average claim rate would change the gross loss reserve amount for such quarter by approximately $72 million, and a change of 3% in its average severity rate would change the gross loss reserve amount for such quarter by approximately $15 million. 109 Table of Contents Valuation of fixed maturity securities.
For example, based on Enact’s actual experience during the three-year period ended December 31, 2025 , a quarterly change of 4% in its average claim rate would change the gross loss reserve amount for such quarter by approximate ly $79 million, and a change of 3% in its average severity rate would change the gross loss reserve amount for such quarter by approximately $16 million. 99 Table of Contents Valuation of fixed maturity securities.
These negative influences on loss severity could be mitigated in part by embedded home price appreciation. For loans insured on or after October 1, 2014, Enact’s mortgage insurance policies limit the number of months of unpaid interest and associated expenses that are included in the mortgage insurance claim amount to a maximum of 36 months.
These negative influences on loss severity could be mitigated in part by embedded home price appreciation. The majority of Enact’s mortgage insurance policies limit the number of months of unpaid interest and associated expenses that are included in the mortgage insurance claim amount to a maximum of 36 months.
On January 27, 2025, Enact executed two excess of loss reinsurance transactions that provide approximately $225 million and $260 million, respectively, of reinsurance coverage on a portion of expected new insurance written for the 2025 and 2026 book years.
Reinsurance transactions During 2025, Enact executed excess of loss reinsurance transactions that provide approximately $225 million of reinsurance coverage on a portion of new insurance written for the 2025 book year, and $260 million and $170 million of coverage on a portion of expected new insurance written for the 2026 and 2027 book years, respectively.
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.
Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments. 64 Table of Contents The following table presents a reconciliation of net income (loss) to adjusted operating income (loss) for the years ended December 31: (Amounts in millions) 2025 2024 2023 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 223 $ 299 $ 76 Add: net income (loss) attributable to noncontrolling interests 127 128 123 Net income (loss) 350 427 199 Less: income (loss) from discontinued operations, net of taxes 1 (10) — Income (loss) from continuing operations 349 437 199 Less: net income (loss) from continuing operations attributable to noncontrolling interests 127 128 123 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders 222 309 76 Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (62) (17) (25) Changes in fair value of market risk benefits attributable to changes in interest rates, equity markets and associated hedges (2) (5) (43) (22) (Gains) losses on early extinguishment of debt, net (3) (1) 2 (2) Expenses related to restructuring — 12 4 Taxes on adjustments (4) (10) 10 10 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 144 $ 273 $ 41 _____________ (1) For the years ended December 31, 2025, 2024 and 2023, net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $3 million, $4 million and $2 million, respectively.
As we manage our legacy U.S. life insurance subsidiaries on a standalone basis, they 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.
We manage our legacy insurance subsidiaries on a standalone basis. Accordingly, these subsidiaries will continue to rely on their statutory capital, significant reserves, prudent management of the in-force blocks and other management actions, including our long-term care insurance in-force rate actions, to satisfy policyholder obligations.
Interest credited • Our life insurance products decreased $37 million primarily driven by lower policy loan rates in our corporate-owned life insurance products in 2024. • Our fixed annuity products decreased $13 million largely due to block runoff, partially offset by higher crediting rates in 2024. Acquisition and operating expenses, net of deferrals.
Interest credited • Our life insurance products decreased $37 million primarily driven by lower policy loan rates in our corporate-owned life insurance products in 2024. • Our annuity products decreased $13 million largely due to block runoff, partially offset by higher crediting rates in 2024.
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.
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) and insured morbidity (i.e., frequency and severity of claim, including claim termination rates and benefit utilization rates).
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.
As of December 31, 2025 , we posted initial margin of $76 million to our clearing agents, which represented $38 million more than was otherwise required by the clearinghouse.
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.
As of December 31, 2025, Enact had estimated available assets of $5,015 million against $3,096 million net required assets under PMIERs, compared to available assets of $5,095 million against $3,043 million net required assets as of December 31, 2024.
While our 2024 assumption review considered trends during the pandemic years, our updates to long-term assumptions generally exclude or adjust experience data after 2019, as we do not have sufficient information around the long-term effects of COVID-19.
While our 2025 assumption review considered trends during and following the pandemic years, our updates to long-term assumptions generally exclude or adjust experience data from 2020 to 2022, as we do not have sufficient information around the long-term effects of COVID-19.
While our 2024 assumption review considered trends during the pandemic years, our updates to long-term assumptions generally exclude or adjust experience data after 2019, as we do not have sufficient information around the long-term effects of COVID-19.
While our 2025 assumption review considered trends during and following the pandemic years, our updates to long-term assumptions generally exclude or adjust experience data from 2020 to 2022, as we do not have sufficient information around the long-term effects of COVID-19.
Adjustments to reconcile net income (loss) to adjusted operating income (loss) assume a 21% tax rate and are net of the portion attributable to noncontrolling interests.
Adjustments to reconcile net income (loss) to adjusted operating income (loss) assume a 21% current tax rate, plus any associated deferred taxes, and are net of the portion attributable to noncontrolling interests.
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.
We monitor these selected operating performance measures for in-force management actions to track our progress on maintaining the self-sustainability of our legacy insurance subsidiaries. We consider these in-force management action metrics to be measures of financial performance and help to enhance the understanding of the operating performance of our Closed Block segment.

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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 $3.0 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.
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 b illion based on the fair value of our fixed maturity securities as of December 31, 2025 , as compared to an estimated decrease of $3.0 billion under this model as of December 31, 2024 .
During periods of increasing interest rates, market values of lower-yielding assets will decline resulting in unrealized losses on our investment portfolio. In addition, the value of our interest rate hedges will decline during periods of increasing interest rates, requiring us to post/return additional collateral with our derivative counterparties, which could add additional strain to our short-term liquidity.
During periods of increasing interest rates, market values of lower-yielding assets will decline resulting in unrealized losses on our investment portfolio. In addition, the value of our interest rate hedges will decline during periods of increasing interest rates, requiring us to post/return additional collateral with/to our derivative counterparties, which could add additional strain to our short-term liquidity.
If we do not have sufficient high-quality securities to provide as collateral, we may need to sell certain other securities to purchase assets that would be eligible for collateral posting, which could adversely impact our future investment income. Interest Rate Risk We enter into market-sensitive instruments primarily for purposes other than trading.
If we do not have sufficient high-quality securities to provide as collateral, we may need to sell certain other securities to purchase assets that would be eligible for collateral posting, which could adversely impact our future investment income. 106 Table of Contents Interest Rate Risk We enter into market-sensitive instruments primarily for purposes other than trading.
Certain fixed and variable annuity products have market risk benefits that expose us to equity market risk if the performance of the underlying investments in the contractholder accounts experiences downturns or volatility for an extended period of time.
Certain fixed and variable annuity products have market risk 107 Table of Contents benefits that expose us to equity market risk if the performance of the underlying investments in the contractholder accounts experiences downturns or volatility for an extended period of time.
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.
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 $50 million based on our equity positions as of December 31, 2025 , as compared to a decline of approximately $45 million under this model as of December 31, 2024 .
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.
Of the $605 million estimated decrease in fair value of our derivatives portfolio as of December 31, 2025, $50 million related to non-qualified derivatives used to mitigate interest rate risk associated with our variable annuity market risk benefits.
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.
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 based on our equity market derivatives as of both December 31, 2025 and 2024.
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.
The estimated decrease in fair value of our derivatives portfolio would also require us to post collateral to certain derivative counterparties of $555 million and would require us to post cash margin related to our cleared swaps and futures contracts of $95 million based on our derivatives portfolio as of December 31, 2025.
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.
The carrying value of our investment portfolio as of December 31, 2025 and 2024 was $59.2 billion and $57.9 billion , respectively, of which 77% and 78% , 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.
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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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 $55 million as of December 31, 2025 , as compared to an increase of approximately $60 million as of December 31, 2024 . 109 Table of Contents
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.
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.
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 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 both December 31, 2025 and 2024 . 108 Table of Contents 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%.
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.
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.
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.
The weighted-average interest rate 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.
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.
As of December 31, 2025 , Genworth Holdings had outstanding principal of $783 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 .
Genworth Holdings’ variable interest rate debt is comprised of junior subordinated notes due in November 2066.
We continue to monitor the interest rate environment and other market influences to evaluate repurchasing Genworth Holdings’ debt prior to maturity. Genworth Holdings’ variable interest rate debt is comprised of junior subordinated notes due in November 2066.
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.
As a matter of policy, we have not and will not engage in derivative market-making, speculative derivative trading or other speculative derivative activities. 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.
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%.
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) 2025 2024 Principal amount $ 539 $ 546 Weighted-average interest rate (1) 6.53 % 7.44 % Fair value (2) $ 453 $ 451 _______________________ (1) Genworth Holdings’ 2066 Notes have an annual interest rate equal 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%.
Removed
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%.
Added
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 $605 million based on our derivatives portfolio as of December 31, 2025, as compared to an estimated decline of $675 million under this model as of December 31, 2024.

Other GNW 10-K year-over-year comparisons