GNW Genworth Financial

Tim Owens Vice President, Investor Relations
Tom McInerney President & Chief Executive Officer
Dan Sheehan Chief Investment Officer
Kevin Snyder Chief Operating Officer
Howard Mills Deloitte
Sean Perkins Waterfall Asset Management
Manuel Garcia Anchorage
Geoffrey Dunn Dowling & Partners
Howard Amster Amster Trading
Charles Sweat Balyasny
Call transcript
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Good morning ladies and gentlemen, and welcome to the Genworth Financial's Third Quarter 2020 Earnings Conference Call. My name is Jennifer and I will be your coordinator today. At this time, all participants are in a listen-only mode.

We will facilitate a question-and-answer session towards the end of this conference call.

As a reminder, the conference is being recorded for replay purposes [Operator Instructions] I would now like to turn the presentation over to Tim Owens, Vice President of Investor Relations, Mr. Owens.

proceed. may You

Tim Owens

thank earnings and joining third Genworth's Good you XXXX call. quarter morning, for

are this may Our excuse again once speakers remote quality technical any morning, or issues that arise. sound please so

Chief financial supplement Officer earnings you all be Officer, of to Sheehan, our posted Executive referenced Our press our was President hear release were last from We this Chief presentation and night website our our followed Today, and review call. McInerney; these will by Investment released our to during Officer. Chief materials. morning, and will and Tom you and encourage Dan Financial

our prepared a for Following call we comments, up the period. open question-and-answer will

In Kevin will Chief addition available Officer, our Operating Schneider, speakers, questions. to to be take your

morning, may statements. this forward-looking we various make During the call

CEO, And the over I'll to call Tom of foreign Form note references to with to turn statements. all as with where may you we are investors. report please financial And finally, most the earnings accordance believe factors our percentage meaningful be annual non-GAAP statements in when and also the may Our differ advise the statements. notes related our materials, measures measures timing our due have such that statutory results and changes as been the reconciled financial rules. non-GAAP that of now well SEC McInerney. investor President release from materially discussion morning's to of on filing release the presentation estimates impact the regarding We cautionary results In statutory business, to supplement, GAAP as risk includes our forward-looking exchange. Australia Also, required recent This in read to we our talk actual SEC. of XX-K and of the results exclude earnings about filed

Tom McInerney

everyone, Good for and very thank joining you call. morning much, you Tim. Thank our

strong on touch transaction brief our like provide I'll Oceanwide. other strategic priorities turning third Genworth's results First, and call with that other status the and Then significant close progress before the to of Oceanwide Financial across of Chief quarter in over discuss a our Hony pending and several I'd transaction. the funding order Officer. Genworth made announced week, Oceanwide progress to to Dan Earlier towards Capital Shan, requirements this the Genworth's had overview Investment

Genworth, $X.XX As indicated we submitted in pay regulatory remaining amount billion in required can of provide share, so financing the focused expects total Mainland be will timely by XXth, that receipt Oceanwide price also the November in capital finalize is of documentation able Capital to to close that and to the clearances. the purchase per to to Hony approvals the November. transaction funds China on of for the subject $X.X

of acceptance and and Reform or confirmation Additionally, progress updated China regulatory the in Oceanwide of had made information from process, Commission filing Chinese NDRC. extension the requesting of the the submitting the National Development

them as We and and Genworth's are to and a continue steps to dialog extremely this remaining close. they we LU Riepe, regular the I were with will to Jim with throughout Oceanwide Chairman pleased maintained with have progress and update. process, communication maintain Chairman, complete Oceanwide's

the will discuss position those of toward look third We we funding million an our and are be Certain maturing have debt $XXX transaction Dan overall Genworth's completed with our February liquidity transaction. in quarter. ongoing These close to providing part remarks. to his position the forward address without XX, work plans level, remained of order proceeds continuing to of the process, in additional million $XXX transaction hopeful successful parallel enhance transaction executing by updates a include meet the closing as need that will we USMI capital In further of holding company be liquidity extension. in on Oceanwide's completed obligations. raising debt used we as the of the will in November at to our focused XXXX, time which for in which well We to of

We to IPO steps business. USMI for also of prepare a potential to our take continue

We are and launch to progress to making or efforts, China IPO, to good to we'll on conditions, an continue is further ourselves if delayed the position terminated. these steps take subject transaction market Oceanwide

Year-to-date, on Rate a also basis a LTC On approximately incremental premiums approved which premium or XXXX, our or billion stabilizing annual representing care are increases. We essential value premiums, cumulative insurance $XX.X weighted making has received average increase of great legacy on present rate remains Genworth annualized to of achieved in-force $XXX $XXX approvals MYRAP, million Plan LTC business. since multiyear million going Action of we long-term net have our of premium forward. XX% now progress

To recently committed was involvement our continued executive to the focus enhance on options. this NAIC are an to solutions care LTC industry-wide benefit through We with of and vitality long-term formed force. insurance insurance developing the its subgroup long-term end, insurance industry care reduced to task NAIC

We policies are to affordable choices develop no to their working are modifications with provide more customers longer LTC to rate due and to identify contract recommendations increases. regarding options benefits, where

for robust million adjusted to insurance led written Before the market, in year. prior unemployment USMI was remained $XXX $XXX business. third third delivered operating $X we new and XX% of refinance in elevated of million, provide $XXX in in the of our mortgage ratio strong of adjusted impact I quarter, a performance and operating above the driven sequential reported mortgage outstanding The US million mixed Insurance by At adjusted income insurance and achieved second levels but Mortality prior USMI's the compared Genworth's PMIERs insurance mortgage to to incurred, the of mortgage over pandemic continued relative businesses market. In the in business. income the or XXX%, sufficiency million ways. improvement of and operating quarter by improvement the in reported not will Mortgage businesses. LTC of billion income requirements. the originations Dan, adjusted driven million number an higher IBNR and $XXX up prior private quarter, year, lower turn delinquencies during financial impact favorability. sequential on delinquencies, published USMI of origination of the end the the and relative billion a a all by primarily benefited quarter. The US to loss operating high-level with COVID-XX had year call of performance net which was life larger income the insurance of prior saw new trends, in quarter, which overview $X the $XX.X excess versus our lower I a quarter a We

care insurance deferred life quarter economic $X loss of primarily acquisition the Our insurance approximately above $X and Australia of preserving the $XX we targets. new due income million of the will of included a capital further recovery delivered businesses in adjusted In receive on mortgage and strong In still seeing $X MI from in to COVID-XX AUDXXX subsidiaries, mortgage insurance million $X fixed as to $XX income US timing uncertainty are higher costs down as from operating versus not variety $XX due of prior macroeconomic factors, management of loss a up prior response up dividends incidence a annuities. $XX operating environment, million in operating Capital million in year. million including XXXX income business and in million in reported This amount of in from insurance prior million amortization million an to the million remained million, depend from the continued to well we the with offset year, and and higher-than-normal lower prior quarter in adjusted expect terminations the therefore, total care of the In dividends we long-term adjusted operating in prior in levels long-term by from do quarter adjusted and insurance, claim year. insurance, of in The of in Genworth's loss claims. of we life $XX COVID-XX. part timing XXXX. are

our across in continued these of closely. We continuing to as of are our remote whom Out service a we earlier monitor public. general have proud of an trends work closures environment. strengthened to and have X, vaccine execution maintain status abundance all June than open excellent a the am work-from-home offices the result customers office our teams, guidance, reserves continuing any is deliver until and strong our our of to are safe IBNR a to XXXX. recent decided caution, vaccine will not to we available Based widely on I

to businesses. navigate the operate position uncertainty, positions confident that we're taking factors in remains can right and control, we mortgage continuing high, businesses insurance are strong uncertainty our maintaining steps on our focusing to capital While we effectively to the

will improve our our to while merger conclusion Dan. to value Company's shareholders financial that, taking successful the maximize call steps With I'll towards flexibility, with continue now of working a We the Oceanwide. the turn over tirelessly to for proactive by

Dan Sheehan

everyone. and third our good and subsidiaries positions Tom, results Today, cover will quarter, morning, capital I Thanks, financial the our for liquidity. holding of company

period million. with from and the net continue with improved to our moderating appreciated Genworth to mortgage net overall mortgage remained million quarter portfolio We a operating each insurance and by the income market value business the peak. incremental businesses holding when Strips progress through a of from available $XXX of continue pandemic, income of income very uncertainty had areas the our face adjusted gains housing $XXX between market to difference million in improving insurance delinquencies The resilient this primary quarter significantly. I'm in sale US was ratios at large $XXX of pleased prices, those made has origination of the driver and the adjusted liquidity earnings, and company. capital reposition income the we time as of and life market at the home the The reported net Treasury challenges we shareholders with the of securities for these While US operating earlier of created during in strong

reserve strong benefited improvement not or sequentially, and driven and improved in We're financial lower third USMI reported trends. which Our has quality with of pleased but favorability. results participation market, includes and IBNR performance levels primarily the USMI's from credit quarter delinquencies by business the the business loss mortgage fundamentals. new its delinquency underlying incurred of this in

adjusted loss For the income XX%. reported $XXX a million ratio of operating of had USMI and quarter,

approximately still versus cure delinquencies pre-COVID While they down quarter delinquencies during new third may forbearance primary with elevated reported which an were XX% at the in elevated rate. were sequentially, primary plans, XX% new of levels, being

plan. eventual forbearance in for plans for currently once rate with a expectation lower outside quarter's delinquencies higher of a Our delinquencies rate the forbearance claim claims claim blended for or a new rate again delinquencies roll assumed expected of

past materially our forbearance on rely hurricane-related roll to through our to were experience continue prior and effectiveness rates, given of rates the We pandemic. forbearance which lower set roll

$XX $XX trends In improvement delinquencies, USMI as IBNR the established addition was new to that released million in of reserves increase million in delinquency the new prior quarter of improved.

prior forbearance plan, quarter, of insurance new with mortgage transactions levels sequentially a quarter. peak We We up $XX.X in refinancing estimate impacted servicer-reported third ended primary cures of the our insurance Our decision primarily in conditions the quarter driven delinquent. prevailing XX,XXX participation trends, to with have our a delinquencies under both market. and year, or written forbearance in be in generally. rate a which adjust by as our of larger with in and of risk from Primary X.X%, XX% are ended the reported delinquencies outpaced pricing policies May will in private leading X.X% delinquencies in our those or USMI but down XX,XXX and which reported new XX% higher versus strong, total of view active sequentially being declined was a indicator delinquency primary quarter in the decreased our as activity more the updated of market commitment the share forward our as billion forbearance

recover to persistency the versus prices, levels. business grown lower partially before to it Australia, declines the stability our economy unemployment In will primary the force insurance has pre-COVID prior home XX% strong year, time in the While new with the offset moderating in rate be economy fully and some although levels. continued in recovers

programs, eligible forbearance During six-month are additional will program, government the Australia's federal original banks the deferral these total allow extended beyond the home X% and of XX% last Australia Approximately loan and from large Australian business which period. quarter, borrowers households utilizing assistance the quarter. down

for are Under X% XXth, MI, and down its initial lower the Australia for these The not XXXX. in $XX premium COVID-XX currently quarter XX% to over prior approximately and regarding XXXX, higher quarter of quarter reported XX,XXX of complete pattern. for to drove payment sequentially to million confidence, Australia and the XX% US from which our business this these was Consistent loans interest NIW, loans delinquency billion June at reserves million insured million Low year. Adjusted $X third flow our patterns review and Australia holiday than last operating earnings For account quarter in programs, year. $XX forbearance fourth XX,XXX as insurance in prior normal the slightly loans down consumer increased from guidelines, of the macroeconomic year. participating GAAP current or deferrals. prior its loans regulatory which quarter from up its in disruption and loss the million, $X in lockdown, quarter up prior mortgage income business $X.X than the prior expected the million versus by following XX%, Australia ratio conditions, of $XX uncertainty are for gradually delinquent. with was was loss XX% annual and is the years, the was prior quarter, improving rates

its business to the assess delinquency and addition, deferrals the of clearer. pace the loss recovery continue including reserves as the holiday appropriateness economic become of patterns, In changes payment will to

adjusted Life. US third segment The operating reported for of $XX to million quarter. Turning income the

sequentially protected reserves to to premium of the to our were in prior DAC long-term in higher was terminations the Our level Net as also claim across their versus year XX-year favorable on well investment to US income third the income higher universal life year products, life flat In our XX-year for the experience partnership experience inflation limited attributable securities. enter as included as COVID-XX post treasury US amortization term term life quarter. up adjustments and on versus negative and mortality continued from and inflation prior pandemic. and significantly businesses care, we blocks quarter insurance they US impacts elevated continue prior the part all period.

certificates result continue some the make we incremental of of trends do were official monitor causes Although direct do not these cannot we for degree require debt we COVID-XX, attribution closely. death, of terminations LTC terminations to to a and believe and

claims experienced decreased Since the COVID-XX new claim further favorable X age, incurrals Choice new development claim on Choice from incidence Although and lower new continue on with favorable blocks driving claim of we've pandemic, X to have IBNR additional overall. IBNR grow submissions start development.

is this do our protocols trend. However, to reflecting due reporting previous resemble we and believe shelter-in-place that distancing that experience more ultimately recent reduction delays and social incidence will temporary, in claims in incidence

investor IBNR of Shifting were the and overall quarter Page As LTC, million recalibrated quarter calculation year, we've prior illustrated the The presentation. our the further during actions a as result, rate our in-force reviewed IBNR review. and lower by XX assumption quarter. than $XX in will on to be benefits prior overall fourth strengthened the for slightly

rate While from large XXXX, in implementations. remained they're several XXXX, to actions which the benefit strong benefited reductions lower from relative state in-force

policyholders filing select. benefit activity of product during actions year. that of past. also accelerated the series new not quarter, and expect the we've more to for the also which They which continue we rate filings a seen These in Our reduction requested variety increases we've third alternatives, remainder the newer include through for include rate

average the actuarially-justified During We million increases. rate the engaged impacting state quarter, approvals XX%. remain of a Genworth importance regulators of rate approval with $XXX weighted premiums received on with of

we're also additional filings quarter secure the approvals current far In hope and the received XXXX. fourth addition so we've during working significant this of to approvals year, on to

quarter versus the prior for Turning mortality to the insurance, prior year. quarter was life and elevated overall

included COVID-XX-related continue impacted post-level approximately than Total the by death prior [ph] during insurance to period by but unfavorable original of certificates would term primarily life third million our The higher level versus prior of received premium estimate have to XX-year the in reduced mortality upon be based short impacts, $XX an insurance The quarter Absent large that year was lapses, earnings negatively amortization, claims, COVID-XX prior business impact in date. higher term premium versus quarter. modestly assumptions lapses the quarter, year. insurance to flat to as more a $XX the is which million quarter. after these the related entered term DAC XXXX business the locked-in non-cash compared tax, the the life term written life life been

we levels post-level to expect policies amortization to into term declined sales As the XXXX XXXX. entering [ph], half the second quarter of the to begin decrease period in fourth in and related

term policies block and be than life by XXXX XXXX. expect place, on also product. Going we thus amortization observed would be forward, losses in results sizes and period impacted Insurance reinsurance what entering post-level agreements continue term negatively DAC lower our in Life smaller in universal in to we given the to far insurance

As was in the a adjusted quarter. from operating GAAP current the negative premium market market reminder, the as which segment the as was higher XXXX, the to annuities. on entering million of this will and it In equity should Though prior of the number year this second grace prior though mortality persist due In mostly policies our annuities, single in runoff and period half the segment, they we immediate quarter. exceed of equity lower The enter the quarter, improvement net the quarter fourth was the and premium premium earnings, which than period performance offsetting spreads during the these of a by the the the policies pressured impact of into smaller number benefited dynamic revenue grace by for of lapsing policies expect prior quarter is after without post-level income first premium reserve was to driven premium build their was as certain third strong in quarter, dynamic XXXX ticket. fixed compared periods. offset $XX not

life we've insurance lines our product each our key our actuarial years. the assumptions companies, in of fourth the completing as process in we're of for For prior US in quarter of done review annual

recognition with insurers impact of long and duration yields, cash view focused flow most with assumptions our current we're statutory As long-term on interest loss rates which portfolio products, to test. related and

to certain from universal separate products a on life using reinvestment In guarantees each June insurance year. of testing require prescribed July addition, with statutory basis our the secondary rate

this during will rates declining in XX the GLIC. to $XXX which statutory roughly that for Given in we increase a by equate point approximately million reserves XXXX, need risk-based we to Genworth believe likely period, reduction currently XX would Company capital Life or Insurance point to

review, LTC, reserve expect the to with quarter. For we review the claims reserve the active also life in concurrent finalize fourth

do work to While not be reserve indicate to ongoing, current need in the assumptions holding as strengthen up claims aggregate. this is appear the trends a

third For loss versus $XX was operating primarily This corporate quarter. prior other, and to tax attributable the million loss adjusted quarter, our adjustments. for higher is the

portfolio Our gain impairments. environment, at the quarter, minimal fixed well the and billion the to reflecting the billion uncertain approximately continues of $XX unrealized to benign cash maturity position end credit markets, macroeconomic migration given $X.X reaching improve, and investment continued perform the credit improvements in

Turning to capital levels.

we requirements with partially the by $X.X prior Our our offset sufficiency PMIERs XXth, our In capital lapses reinsurance The PMIERs amortization insurance approximately businesses was new Australian third transactions. a business decline elevated of ratio positions levels, at quarter September the quarter versus existing acceleration and or US of in maintained billion of published mortgage USMI, by driven the as and end the strong the strong XXXX. and above of XXX% sufficiency finished of the quarter.

of credit against PMIERs XXXX completed with calculation an which as October program, effect eligible excess credit an cash than we of from In normal published PMIERs delinquencies by in provide decreased million The offset continues These will transaction, been our sufficiency risk part contract partially has impacts business the insurance-linked sufficiency COVID-XX. flows. note result XXX% requirements. to of loss only for favorable PMIERs would delinquency additional In include development XX% $XXX were of previously a ratio strong as expected. addition, XXXX capital our credit to the more multiplier of and transfer associated

effect that release, we which in met. press PMIERs capital acquired certain maintained including has As will XXX% assets, GSE the noted USMI of recently remain the business, the are on imposed until certain GEMICO in restrictions requirement conditions our minimum

prescribed XX on of quarter estimate million annuities of remaining quarter, AUDXXX a end primarily RBC Our is the recovery. percentage The the AUDXXX with in which capital Australia or target from We of the of of level or outstanding leaving was LTC XXX%, to of as Post ended the redeemed GLIC, reduction by due action end, ratio the a Tier Insurance capital due approximately MI XXX% Genworth continued points variable performance Company XXXX. business its in XXXX, business the end driven PCA high debt Company quarter million in improvement X amount third market to XXX% Life above of estimated related range be equity portion second up the in approximately the quarter. only as an reserves and management the approximately XXX%. to

holding ended during cash Cash quarter $XXX holding service of that quarter. the million of XXXX in tax cash detail, agreed-upon $XXX $XX the buffer. settlement, debt for million. million from we presentation recent for debt above uses maturity, and in of of assets $XXX at the include we cash including and the as and cash made inflows $XXX cash, notes For plan company million repurchases for is payments open during the February July AXA XXXX approximately which $XXX that paid intercompany in $XX part our issuance time. million windows quarter investor to liquid balance with were the $XX XX USMI debt Approximately million provides Page the targeted ring-fenced quarterly company pay or senior of our to million million the

September have in maturing holding million, we of XXXX. company principal maturing debt upcoming obligations, balances in $XXX million February XXXX For $XXX and

of XXXX the insurance we subsidiaries To business expecting USMI in last maturity, XX these fully rest we of preserve quarter, market As noted mortgage the for if COVID-XX. our to the from with uncertainty continue September conditions, prepare the delayed further dividends IPO transaction or given our to terminated. for is an Oceanwide to not address capital of businesses we're subject

our steps liquidity well the as Our position this to of uncertain past pleased the pursue to remain on of financial Oceanwide company to with or we've business liquidity affords In our and to agreement and providing improve times. position. With navigate us other open We're closing, it our to with flexibility numerous flexibility progress as taken that, strengthen stakeholders. our financial these key let's value focused all up to questions. holding


[Operator Deloitte. Mills Instructions] to We'll Howard go first with

Howard Mills

No, intend I'm not you. ask to sorry, did Thank I question.


[Operator Instructions] [ph]. open. line next Stan, Mercer We'll go is to your Stan

Unidentified Analyst

not intend sorry. to I I'm a ask did question,


Perkins Sean to next Asset Waterfall go Management. We'll with

Sean Perkins

Thanks equity the potential guys. wanted all? IPO potential of Oceanwide related if at of those Could the just I to sequencing and/or couple call, the USMI clarify closing a events, to of walk things subsidiary. -- possible through IPO for having the we

Tom McInerney

question. the for Thanks Sean. Sure,

submitted China. week, Genworth, on gathering have So is in in as lot expect mean, of cash the based occur Hony I they're funding that Mainland promotion wide Capital the funds. disclosed documentation in different sources will of a and November, earlier information we we and to that obviously, they the

the for best NDRC need with that the from month extension. we to in put gathering end if authorized But the exchange. everything -- hopeful to Based do an on close an we that we're know, of approval they're need will, by So no and say can re-approval, they account. you it

cautious, there a will operate the obviously, that continuing USMI although deal isn't to optimistic assuming we the IPO, we're cautiously be deal. able close to On we're to closed, be

SEC, of call here, are I so And the to the have all we're be probably steps, with up a on think lot with familiar [indiscernible] filings doing etcetera, done the there that. them that

And so in obviously, pretty to COVID-XX. from view doing And positive. launch subject USMI conditions. business be Right an they're the is that to now, we well, recovering market is would IPO, our a position

is an in our would next so half be current deal, sometime of And first the if year. IPO to plans, there no launch

Sean Perkins

with exclusive, of they're that mutually USMI? transaction move such would there in in And IPO any closed scenario it. is form of and forward China you Got still which Oceanwide any

Tom McInerney

almost. would valuable don't think us the I question, of performance think, PMIERs years. team And rating a the full has I earnings there the awesome business. mean I our had, team They've think for look, good say USMI been the here now, They results another I business. -- give eight that's say, would the got USMI do that management significant well Sean. over I to side. credit I've yes, we're there above I on -- is on capital, continue agencies years disappointed last I the requirements. team terrific mean the that eight excess very

As if we're Dan quarter, mentioned, at ILN fourth in did you the conclude we deal the XXX%.

performance with of on for a that agencies competitors. think have the why of of competitors, So more degree ratings. ratings public USMI aren't equal some do not, I or for the significant there's did we be the the is, an than and I or so our ratings positive our GSEs don't should should higher. that be consistent float to some we know MI rating better Whether the most the deal higher is and if U.S. USMI And given one the things IPO, we're with working

by obviously, -- sense. to a is would makes deserve possible. allows that we is it's closing, the If it'll up be So doing that anyway. IPO the do goal the to that we that decide ratings think to possibility if to -- we that, now, get but the new post that there us

Sean Perkins

appreciate that does, disclosure. Yes, really I and it

earmarked there on settlement? AXA Oceanwide form -- would AXA proceeds the the China from or the would earmarked the any of for any to relates the closing settlement, it As same just been be be that on have

Tom McInerney

question, good Sean. Another

we by that billion the month. from end We shareholders at transaction closing, that's Oceanwide to April, $X.X $X.XX Genworth, capital do 'XX, the July. there's in of the But going billion in that one -- at price, million into purchase of the of coming the the the $XXX the one new one billion So that end the end at in close apart per January end $X.X $X.X of provide of think goes come share. at of the the to tranches each, of will three

so, just that $X.X $X.X And about, an of hand, on as $XXX billion. IPO, with $XXX talked have million and with believe million, we we million of Sean. $X.X the billion, -- cash cash that's those the potentially we But

think And go investment so And is which further we in expectation from XXXX in And two the towards I -- how around AXA debt, -- other other that that so liabilities that billion the be off the -- what in will different our the on tranches note that, using the XXXX. is proceeds the the we the there cash XXXX. be from liability the get MI the in is are by will owe businesses. XXXX pay in certainly, that AXA billion. on under retire then dividends think the of will to used? of $X reducing in year $X.X Oceanwide, subsidiaries we then debt possibilities, terms future in But any And focus hand. main investments next and cash plus

Sean Perkins

much. Very Thanks so helpful.

Tom McInerney

welcome. questions. for Thanks All the Sean. right, very


go Anchorage. to We'll with Garcia Manuel next

Manuel Garcia

received? bunch $X.X the the it. just all matter of a $X.X now was for billion reasons have Hi were approved of one approval? describe going think the all capital, to for a Hony and it's to that I couple getting provide billion, been you guys, isn't them Has the already one a regulatory that the LPs Capital, of the behind holdup get of they past, providing Hony the itself questions, in there Do that the funding

Tom McInerney

shape I I the the Thanks we're question. very say good Yes, $X.X Manuel. think would billion. on for in

support comes XX% conversations believe NDRC I together, on have the We are based the obviously, arranged regulators, was I Obviously, mean, the on I get how works. think don't SAFE the Mainland $X.X approval the to decision LU think the I've the deal. Chinese Hony with their so been and partners much those had we very shape. number beginning, the that's they a to of -- conversion make, of authorization, funding funding to pretty ahead do that dependent China, the good the a We Chairman actual that, billion think the from it's that of the all but them. of then on want do from close that the and process I to continue and of of window

or would today SAFE and So, end X we to able in NDRC the the it Mainland so transfer then November, Hony then by and out the the from of Capital plan. be close weeks so, approvals next wired be its of November the we'd then three hope that's would China those deal money come billion and and in $X.X would be

Manuel Garcia

Hony The concern been Yes, the no, the no. regulator, have answer been has answer concern $X.X don't really billion. I guess is, I it is, does the think the has I does. the guess yes?

Tom McInerney

based I think --

Manuel Garcia

Or not yet?

Tom McInerney

on Based shape. in the is we everything have good billion think Hony we $X.X Capital heard,

Manuel Garcia

shape, good It's okay. in

Okay, for that. thank you

billion? source actually I three the already tranches. had Second it capital getting and question of be a the financed subsequent the Is Any coming deal is, process updated of locked the $X.X for new is billion that into of going year that of new capital What's entity in? Or money approved? uncertainty closing? $X.X post next and there that to

Tom McInerney

back significant regulators deal, billion. Genworth going reason to that supportive a the beginning are $X.X of of the is deal way Again, the the of because all the that

So $X.X the of all it's of and due itself and big transaction done think the Genworth a have diligence their on regulators I billion. Genworth of part the

total the capital. so on rely their around world on And and can businesses that, Oceanwide

as are in had scheduled. $XXX we conversations based again on so, And tranches and the will those billion, documentation that million $X.X on comfortable and the come the we've regulators

Manuel Garcia

losing my then you in though, the USMI share a had final talked be and was market question I still mortgage Okay pretty solid about on business, sorry, share. obviously you commentary some think some

conservative. quarter? pricing last this What competitors? you your more You a you more than see made approach conservative Did talked weaken take little being a about

Tom McInerney

Yes, more would because things, that's perspective. think we very to the Manuel I I you -- on Kevin a opportunities saw from little I'll but how new a was in lot we Officer the can did a when Kevin say, going of terms the NIW you the business and I our a business think strong be who careful details but quarter, in answer to precise be bit what on give think of more based market give share I'll at Operating quarter-to-quarter you a is Chief Snyder, ask different look little

So, Kevin, over to you.

Kevin Snyder

quarter. including, continually impacted price our is particularly to -- our Tom. selective from -- our not down I estimate of commitment competitiveness last is in that's some limited, prior our in relative that by market execution year share our our Thanks, but strategy share and peers is the forward to go-to-market and the participation in We transactions. the do

some, business do market. what back I And available manage always to and we trade managing basis. of trim this our This competitive around, share's sensitive competitive of to of chose is perhaps quite strong our forward price that to progression is the eye a some moves like -- share commitment good on risk extensive But we level Managing in share tell be we and an with level didn't maintain we think come are poised trying lose the very going we some that we're a was the it we additional achieve And share As to we the off drive still going volume associated feel returns forward. much the our always down bit. with and gain would market on share level and it's and the I business. the with continue think We're new a trying a it. return regularly volumes about for customer reward the in pulled react to to quarter-to-quarter market areas our market we in Tom guess at. you and business. We is some portfolio. We will that to with time, little back the mentioned, as

Manuel Garcia

understand that is back of highlighted? agree pricing terms as look that I a idea more Was you want not it of you you concerned? market what market just -- business think to program if in not sense you point back Just think and pull the a -- that share, like criticism maintaining just bit you fully are that did environment that it's you point. good there in see say said. weaken, but a pull increasing see a did you on what a risk of you that's that Just is share I like-for-like valid, made bad and I basis, totally think to lower you see It's you to more try made that get a trying make as you

Kevin Snyder

share the environment but And downcycle, No, happen cautious whack. We really overall. the has we've business, compare -- play stronger to with a what's out on just out credit there pricing -- QX, smaller say a COVID QX. in And was it's and very of competition strong. writing remain We we business had to think there you much been it the market the going in of last big would nothing very and this quality been volume. I some was enhanced strong when

but So, competition, business. of a all of in little business bit US of the Mortgage days maybe Insurance just the

Tom McInerney

quarters $XX The only that I writing for tell we'd any can thing this be of expect billion not more operating plan in our we would than our if look new did I I Manuel at XXXX, you NIW year.

back we $XX and to this if -- the billion. go over it So quarter, you quarter was over billion $XX second

we well what you I perspective goals but team NIW at very pleased for the Kevin, the the and know disappointed to And of people we're competitors lower the as terms even it's we think have with I running Rohit doing, that well of looking extremely some we other think USMI Despite I again think than by our above issue. my expectations competitors, hard better being are the ratings. year or that ratings operate has know, We and execution Gupta, of rating the and though as their are because in USMI well done. they're from I'm -- think competitors, always good say, wrong are with than that, it's we USMI, do they written. the think all So, this think how I

the pleased in very important with continue the the and thing as we new price NIW is we're level mentioned most So, to mid-teens. and business Kevin

a over at basis I And think adds lot the value free so, two quarters billion pricing that XX $XX to and business Genworth. rate, if mid-teens, do point NIW the in to you to risk look ultimately amount of USMI of the a in last

Manuel Garcia

right, very Yes. guys thank All you much


to Dunn Partners. go with We'll next Dowling Geoffrey &

Geoffrey Dunn

in decline loss Thanks, aspects traditional I of you Is good my other up line to your Or follow the the with the commitment that back contract? share to wanted sequentially, market of just forward -- in flow on that is questioning. sense due morning. are primarily market? pulling

Kevin Snyder

say… would I

Tom McInerney

say, questions question, thanks to the the I I to for to yes, have USMI. to turn Kevin was it answer on going

Kevin Snyder

little as channel that it's was And I that bit were a would the most we I business. is not of anything, our It in participation say, selective we Geoff. market. conscious. necessary lost mentioned, if more probably price-sensitive in But that the

and we, so And it rest it, level really of the the was that from at pressure not space. market

Geoffrey Dunn

think average think XX% pre-COVID. is case? up was, Okay. I XX%, in that quarter And consensus the Do pricing the then on from second was you generally the general back still

Kevin Snyder

that's forbearance come period. the seeing the we we're And still -- and as of it's bit, down little it's doing about a as, into and decline the -- overall probably to above in against starting that but start was performance probably think it's as it's level good as the Geoff to this that as entered reflect a cures I ballpark. off we are trends backed We job the and probably some new -- delinquency the still delinquencies.

trend. So, good it's we see a good pretty and a overall environment on

So, up bit. compared we a not I to but think off we're little started, still where XX%, backed the maybe full

Geoffrey Dunn

savings is in and Okay, of to maintain in terms winning of pushing shift returns? and through rates, ends passed that the that scenario the in the spring tax pricing industry 'XX, corporate up your actually tax increased need what sense and then in last back Biden question. all power pricing on If to

Tom McInerney

subsequent cost, from maintain a under are the think the pricing respond -- returns tax change and we are negatively returns in we're I Yes we'd presidency, impacted and approach if to our have -- our customers. cost to existing to our Biden a

that of So, some up. along I if We may we that the took back taxes of -- and tax passed went push have to would think when it to down. customers, the we advantage go rate

Geoffrey Dunn

you. Okay, thank


to Amster Trading. with go We'll Howard next Amster

Howard Amster

AXA, that? Congratulations sold from back where on the you want a to you're the some for line What's Tom. of that's over, banks time might increases a again, on proposing the that just how is, second wondering care? question you get that money great insurance? some the I And quarter, the the I'm And did ask can on you question long-term going? go

Tom McInerney

Howard, for Good those questions. of Thanks, both Sure. morning.

on we So settlement. made AXA, the

some of we still will AXA, are there invoices little as settlement, million in, that's in of And the view think the much new all we we're I but that the invoices thought that of be from a gave proceeding through. would passed sort that part GBPXXX we coming -- market pretty a As and that be over expected.

number XX said As on in I a Howard, spent you have I years previous calls of and Europe. know, as

insurers because banking in So in these developed is I'm the insurance did the terms And they the cases familiar -- very cases of with of precedent end, misselling. banking and the partner held banking partners the were selling almost not, that all and in all the responsible.

AXA And would And pursuing we successful that. our view case. with ultimately ultimately the I would part in as Banco would agreement And we The forward, bank we've going in recoveries. think we said, so share of be my made here the is Santander. AXA, to that's as is payments still -- extent

through that a more really go AXA's precedent decision in we the at But to has the recovery. all ours. point than would would that and future, some get again, process So that's say

of they're receive we fourth states, do quarter, if I expect anticipate the a million. LTC very, queue, in On will the come [ph] very we we big $XXX where obviously they're in. side, I that have LTC a basis, because tell present now went mean will some approval exactly But when million XX.X% the I'm value you, premium $XXX increases. day. meaningful. is little that's we states numbers, good in large our hard average have cumulative will, always approval premiums, predict I our more success. you It's a through to XX%. net we'll Overall, of several good In And they'll pleased.

every year assumptions been multiyear we plan action XXXX, Our we've that as updated are working rate since on updated.

be increases. think claims So this you And long-term NAIC continues reserves. We're or care on more we are know force, I there's less, would LTC think that commissioners, that. to, able I increase with assumptions, the -- and large, offset case. support pay that change And XX And assumptions, are to approving goes it say increase their I to I the premium claims the task that states, would by the all paying. NAIC premium all obligation our increases. make those of It's to these sure to say strongly in end, almost in part -- that's policyholders.

I in, five come them years for like. And whole are all think requirement they to willing open are I three the more or They've last think and do LTC, And the go think well. seen continue them. is industry, the if as that regulators that increases premium the four they actuarially-justified, like their five I They been think premium the to or more than spread years. grant have six I are claims well will actuarially-justified increases. last would I So, that going six over have for because today years it out these versus continue. the ago, seems or

multiyear doing anticipated the plan. make which value understandable. our a is we policyholders, under it I think to easier that that they're rate present action that net But getting we for still are

So, I think that's a plus.

Howard Amster

Thank you very much.

Tom McInerney

thanks. Howard, Welcome


Balyasny. from coming time gentlemen, we final Charles and question have Ladies for with one Sweat

Charles Sweat


United are buying estate to similar. from I about pretty real the for mute. regarding a the documents available, I some Oceanwide. financing was where Genworth Oceanwide numbers question the sure Capital because And follow up appears Sorry, thing I in transaction. want on there projects is Wanted assets transactions estate the since wanted aren't real subject for the States transaction that they the corporate to financing to to we're provided financing has the be just that that pretty complicated is just structure. that Hony clarify isn't the one on closing And make Oceanwide those talking to

Tom McInerney

the to by listed transaction, a separate years two at the it's deal then -- bridge Capital is counterparty Francisco great of a that Hony fund. that totally real And Charles, loan it's And Hony The and San funds property question. are of the are looking for Capital Francisco So there the the Oceanwide, funds a estate the that Hony Capital San funds LP, our sort Capital. Hony which the provided Fund a in is then Mezzanine is fund transaction. property, -- for

real mezzanine One with Hony debt limited Capital and is general estate these partner different and fund. both different So, funds other fund is the are partners, a is a priorities.

Charles Sweat

thanks. Great,


call Ladies to McInerney over turn for the Mr. back and gentlemen. I comments. will closing now

Tom McInerney

everybody Jennifer. the much, joining to thank I want And to also want call. questions. very the you Thank I for also thank

questions, in. of all a asked think investors I know you are lot of interested very I good and

additional that little of final made for Monday. as do it's That hopeful perspective Hony that the I We full be end we re-approval can by did. value holding think our look company the But we'll reiterate that USMI And close we're In shareholders, the hopeful we're strategic level, XX for the -- bit China. based years strides and the updating level and we thank the update ongoing chance they as coming the those. we've that the great the filings. IPO. than to that. through speed because Oceanwide at financing fantastic was term So well want without in challenges higher and transaction the And had best they've previous the NDRC Australia pleased meantime, the very on they're waiting on one on the I priorities, running Obviously, good insurance give we're business with you we to financing still able think think the focusing the then The debt you and had a that the end USMI a the assumptions -- that we we're extension. from [ph] quarter. have at for lapse to, everything of all progress the are shape actions. and are Mainland life a Company, is our the the business made making were in the close in in finalizing that think million approval rates I ahead of did results, a ago. good with an we I us the more or with from all XX years that's written gave if received I SAFE the quarter, ago we Capital necessary know November. $XXX a to the including since they're documentation think, in we on lot They've

gave And has million think you a which that so -- on for That's was that. little life that, And fixed $XX it despite impact an quarter. overall, $XX annuities, and respectively, But -- that a LTC non-cash the perspective the includes division, bit a we division, at of and US million on that. and I charge. Dan expect good

COVID-XX. global a USMI as challenged as as put economy we're it context I at country say and in with guess, the So still particularly, think, I I'd you of and particularly a

So it's the third the and obviously. think when quarter, operating I I income $XXX well, look $XXX and at very a quarter, the bodes income, net adjusted just million of strong million that

Oceanwide Chairman China quarterly encouraged the and think by results. I is

going see a cases that continue. how and will Obviously, that is hopefully so issue, And out. still significant COVID-XX plays we'll are The up.

with So, call to for And as on. shareholders. Again, turn to I'll that, the everybody your it's something and support over obviously your Jennifer. to be back thanks focused of interest Genworth


participation. gentlemen, your this time, concludes call end. Financial's Genworth this will for Thank At Ladies the you and quarter conference call. third