Genworth (NYSE:GNW) Q4 highlights included $518M of debt reduction, including full retirement of senior notes due in August 2023 and reduction of February 2024 senior notes by $118M. As of Dec. 31, 2021, the company had ~$1.2B of parent holding company long-term debt and $356M in cash and liquid assets.
The company will evaluate its shareholder return program once it reaches its holding company debt target of $1.0B and Enact (NASDAQ:ACT) starts its regular common dividend. Recall that Genworth spun off a minority stake in Enact through an IPO in September.
Genworth (GNW) stock rises 0.5% in after-hours trading.
Q4 adjusted operating EPS of $0.32 fell from $0.46 in Q3 and from $0.37 in the year-ago quarter. Total revenue of $1.74B fell short of the $2.01B consensus and dropped from $2.15B a year ago.
Q4 net investment income of $866M rose from $859M in Q3 and $846M in Q4 2020, due to higher variable investment income, primarily driven by income from limited partnerships in the long term care business. Core yield for the current quarter was 5.01% vs 4.95% in Q3.
Adjusted operating income by unit:
Enact — $125M, up from $134M in Q3 and $95M in the year-ago quarter;
U.S. Life Insurance — $41M, down from $93M in the prior quarter and $129M in the year-ago quarter;
Runoff — $16M vs. $11M in Q3 and $13M in Q4 2020.
Book value per share, excluding accumulated other comprehensive income, of $22.96 rose from $22.62 at Sept. 30, 2021.
Conference call on Feb. 2 at 9:00 AM ET.
Earlier, Genworth Financial GAAP EPS of $0.32 misses by $0.08, revenue misses by $270M