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GNW Genworth Financial

Participants
Tim Owens Vice President of Investor Relations
Thomas McInerney President and Chief Executive Officer
Daniel Sheehan Chief Financial Officer and Chief Investment Officer
Rohit Gupta Chief Executive Officer, Enact
Don Espey Shah Capital Management, Inc
Call transcript
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Operator

Good morning, ladies and gentlemen, and welcome to Genworth Financial's Second Quarter 2021 Earnings Conference Call. My name is Lauren, 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 today’s conference.

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

Tim Owens

Thank Call. and Second morning, you, for operator. Genworth's joining thank Quarter you Earnings XXXX Good

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

all followed Chief were you U.S. and Executive during these security website and Officer, and Dan Mortgage President of we be limited segment, regarding last preparations prepared Chief reference Tom this to posted Investment comments to morning, will press release our our released was McInerney; our Our Financial our Chief call. to Officer Enact, encourage applicable will We Officer. our review for restrictions, Due our financial supplement by you and to an our from our Today, night, earnings of presentation materials. remarks. publicity what and law Sheehan, hear IPO and

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

our to Chief questions. will available speakers, Gupta, addition In Enact, your to Executive be take Officer, Rohit

make During Forward-Looking morning, this we various the may Statements. call

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

Thomas McInerney

reserve create the operating thank and quarter, the ended to also insurance momentum loss adjusted of second three Relative our company you PMIERs versus higher level. and with quarter during Results period. We billion prior the life due the quarter. our principal benefit very earnings requirements lower everyone, earnings call. XXX%. morning, net a Insurance Good higher holding liquid Tim. adjusted published compares or position quarter, XX% favorably million income QX, income quarter, million in continued our income legal both in adjusted in operating in higher reported businesses nearly insurance Insurance of quarter progress Genworth in long-term U.S. with in a for business. and and by adjusted million a reported prior levels XXX% the quarter reported the Genworth's second loss strong a delinquencies. reasonable million XX net of results of actions, decrease as year. insurance, strong XX%, delivered the operating prior an operating five for strengthening million a quarter you, earned two XXX second on ending new compared and Thank second million, joining very XXX insurance our continuing new prior and losses including managed year. adjusted performance of driven a as of Enact the lower Care operating XX reported rate in reductions making at and of operating investment ratio prior operating from the XXX the value. in the XXX prior business, and while to Results to to income loss which new Enact across in-force very related plan in primarily prior reported successfully XXX above by adjusted risk-based driven income strong capital compared an ratio We higher and U.S. Enact, in to strategic Long-Term our quarter the delinquencies quarter strong performance Genworth LTC which were and in strong the known with income million year from reflecting of million XX now of as in assets with settlement Enact well the In million prior with Mortgage written, million quarter premiums capital GLIC, cash quarter company, cash very reflect approximately prior of of the Life

write strong past foundation solid the over next for quarters the performance to us chapter. Genworth a several Our provides

shareholders our over long-term financial stability improved Genworth's flexibility and have know, several past years. As the significantly

to legacy are our result at performance and Strategic particularly blocks. further to associated risk on continued more We a taken now trajectory Enact. as we progress LTC stable reduce debt a with operating reduce strong of have insurance excellent actions

adequate liquidity valuable our capabilities to drive focused creation. shareholder to and value expertise have We and financial long-term meet strategy obligations, a

million focus AXA the million. holding including July, retired our debt approximately XXX fully In to of reducing Moving we by liability holding remaining company two approximately parent previously XXXX primary billion is strategic debt. forward, near-term to company an our additional disclosed in our to maturities, reduce continue XXX to

pull the to to has obligation protection in to process made the ongoing to flexibility debt missed and over it expect future insurance which lawsuit shareholders out policyholders typical seeking billion. Santander U.K. significant in next one reduce is XXXX, settlement. company Santander Genworth total an XX-months approximately sustainable as recover payouts prudent make last the debt AXA to a with I to matter. holding AXA, reduced XX-months. lawsuit by holding we for against capital XXXX mentioned of we quarter payment to Genworth of that reimburse is approximately for a of Our to part to growth. Since initiated portion the level to X.X more A as against And investments goal AXA's Related the a creating litigation, agreed to return have billion, company of financial

AXA Genworth before, entitled to from is said have I May Santander. certain recoveries As receive

recoveries While very plans reliant be are those not our reimbursements. potential will positive Genworth, for any upon

we and that, our improve comment reduce further debt, credit and of Enact ratings, To we a ownership Genworth monetizing IPO Enact accelerate to this can't focused efforts partially XX.X%. litigation. further on minority to our Beyond remain through of up on

has that to option options a to housing potential Enact best that. and Board We economy protect trends is maintain the in sector for and of transaction. over tailwinds have enabling to as for do past recover the to any COVID-XX. maximize the the several U.S. MI our outlook general on just positive continues our been As ultimately to Enact in years, unlock shareholders and objective expected market its positive we IP The us value, based strong long-term considered for future various value believe the I continue the from

the subject and We when monitor various the prepared improve. approvals market continue conditions to conditions market IPO remain recommence process and to will to

or a reminder, the restrictions, currently provide However, won't a the potential as of details as we offering. additional of with any I are the result timing discuss about in SEC publicity applicable registration and

comments our about very Enact results. other its will be limited We than quarterly reviewing in

a our generate Enact company. to breakeven significant ownership legacy majority and dividend books build new the stake as profitable to we in stream a LTE future to in our LTC expect move We work

applicable XXX the million Department with performance North Holdings approvals [indiscernible] quarter Insurance compliance approval of Subject regulatory and XXXX. received This our from fourth the in We have in million issuing business to Carolina fourth a capital to market increases from other GSE quarter. confidence in Enact of Enact dividend the XXX of dividend conditions, requirements.

the the while remainder a the ownership Enact for tax-free to planned to with as the distribute future. attractive intend maintain to Following of option Genworth we shareholders IPO, foreseeable option spin-off that the future, in an preserving our in

LTC legacy working MYRAP, plan we on towards rate us our will growth our LTC multiyear action Next, strategy. which or are focus portfolio through stabilizing to enable long-term our

during We selected XX frequency by These a value provided including and options rate actions and million policyholders, options, premium XX.X stable billion since present right premium with from more the second in at reduced achieved benefit our XXXX, policies. which net higher be reductions this to including approved effort quarter. in over actions have for progress continue exceptional incremental an LTC made increases [indiscernible] on

to working actions. right more the even benefit with our faced when are from options develop We choose for policyholders to

Reducing XX, LTC of have of is an XX% basis As XXXX, June other Genworth's have a taken LTC and MYRAP with option. and rate legacy through accepted legacy XX% Approximately initiatives liabilities LTC option achieving our business in economic increases for on overtime. breakeven policyholders the to non-forfeiture action critical XX% all a benefit full, have opted the reduced premium

XX.X as of means will and this actions, rate XX.X address experience target against expected two-thirds value our would books on achieving target needed could the improvement of cumulative legacy is billion long-term amount a complete are annual business. current way in billion is current billion roughly basis breakeven. this our the LTC approximately present in XX.X year achieved Having over net our we review that I target note of towards later assumptions change to the current shortfall we time LTC the evolves. Our which

same or economic seven regulators five LTC several legacy over continue basis have to an increases likely that returning premium is breakeven years away. LTC years, Given on will and our spread portfolio to to more

important strategic towards progress of value to initiative this expand our Genworth breakeven since goal company proud overall an and will the of are for the We and remains steady optionality MYRAP our potential long-term increase achieving shareholders.

advancing through future company business a underway, focus initiatives a leading of the to create strategy key on U.S. new begun have the these are insurance plans LTC and profitable our our we insurance LTC in insurance With to we growth

U.S. before, by at the with of great to solutions XX long-term to in heightened focus while I expected for with at rising among the end also are and rapidly. receive older, and has seniors care there of general the to Long-Term seeking We XXXX, Care Care their public. a Americans, on increase need increasingly the costs care million Long-Term same million As accelerated legislators and in COVID-XX is it said XX that trend has aged XX number XXXX, the believe homes. time, the

they this public seniors, throughout we in must and protect and the government the of address the of was alliance enabling existing not as or remain before, choice private more and adults, introduced dignity legislation acknowledgment the to As sectors is the the maintain Long-Term to Suozzi. and they why support to their insurance simply in for at if funding private rep Unfortunately, to private Care well necessary to their or for believe and be more are Long-Term them their class, and can seniors by receive setting pandemic, those Care and We dilemma, age. own. gap options limited enabling an done U.S. sectors well-being be to the and evident That need have proposed Act, empower is services pay public many we encouraged partnership middle - successfully too believe critical. to especially large the to see is with older for sectors including the recently Tom fill home either on is collaborate the WISH

encourage We awareness to greater focusing a likelihood needs. public available see is our and Long-Term steps resources care legislation, the requiring component their to are Care we necessary education that cover and that appropriate especially to needs conversations vital years, families with that to make available during Long-Term the take the are of of one's pleased programs later fund the Care have ensure of Netcare, to his ones loved options

complex recent care system have reinvigoration best learn There few LTC, will our lend with effort. help the and insurance, to system and we the and are about of in challenges adjacent in in believe reignite identified and/or business. our are need. to the LTC lower U.S. to insurance long-term the a in fragmented reforming to U.S. several lessening will ultimately a people they and past severe design insurance a tariff that players the address LTC We reduce eager successful We developments, financing needing today due conversations expect this from more to and know unique and we the that key hopefully the to opportunities we is will products LTC experience services to We future with expertise market only both products participate legacy these new people support the the financial arising including extensive care Through the from likelihood also our care. predictable services market risks. of find navigate success

improved working in and have strategy. hard go-to-market on are new We for of a addressable U.S. developing a a picture large and market LTC clear solutions the

As our U.S. decided China, on in launching see in we compelling have mentioned near-term. previously, efforts we focus long-term business the have a also opportunities to but

sometime in to third parties. partnership new Our with in business this launch rated plan is highly XXXX

potential to intellectual look be the up, that especially key near-term. After dividend While key of driving billion to more to regular realizing a important will of resumption three, market We execution shareholders; an parent been debt and we Genworth step reduce prudent be details these value years preparing in on partnership significant we $X of repurchases. our Genworth's due several generate and reaching on target a expect laser and the with four, Enact; One, in uncertainty. I most shareholders value significant will LTC know and five our shares dividends approximately of invest expertise, consider debt throughout U.S. reflect flows our venture is priorities maximizing to cash new returning shareholders to sum that legacy app to current reliable for would capital this stabilizing also the value the any forward Genworth to contribution cash the property of capital. priorities: may company updating our the not level to and focused have our We shareholder course. are we holding portfolio; through our patient five To in and breakeven an to shareholders extremely enable who value billion; one joint achieving a finally, an returning future the from our economic and LTC to launch the intrinsic share last two, the sustainable believe does company,

position continue LTC strong We invest will uniquely opportunities positioned win. to and and we where a prudently new also in to qualified to be are business

we has and leadership the proud position second We that, are Genworth and on have turn this call unparalleled experience a to results an put more now company workforce Board over create to the to financial the With engaged work value. quarter long-term of skilled dedicated to done in path. and team, and extremely our and detail. will I Dan expertise discuss the

Daniel Sheehan

including million, XXXX billion, $XXX parent approximately portfolio. partnerships Included the for company of items, made good quarter which progress remaining quarter Tom, debt and of in reduced the during and Thanks, XXX income We liquidity morning, ratios investment to pleased the at mostly $XX of the XXX debt to I'm reported business earnings quarter AXA liability. U.S. strong everyone. with capital holding holding the and available our continued We of we quarter Insurance the segment; results net Mortgage shareholders strong million the operating Enact our with from income than our consisting net company in with in Genworth end, our September for $XXX two Insurance increases non-operating was Care more income adjusted increased million. million to on company. Subsequent limited in mark-to-market ended quarter Long-Term and million cash. retired in

momentum new their mortgage home The the to by prices continues Turning and housing demonstrate low market inventory rising pandemic-driven the and market, by from interest low to positive challenges origination supported housing delinquencies favorable, rates. large and of a increasing characterized remains U.S. home Enact affordability peak. of prices, continuation the prevailing decreasing Despite segment.

a originations, the approximately quarter, positive purchase experienced mortgage in its higher to the industry times market private as insurance we accelerated originations trend transition is the we versus purchase During penetration which estimate refinances. originations for four

of of results the adjusted a to was million The quarter. primarily Enact prior XXX loss XX% XX% new loss For delinquencies and ratio improvement prior income adjusted operating a lower compared by quarter. second in operating the and compared XXX the in reported driven of million to income quarter, ratio of

insurance grew In addition, last approximately by insurance versus over in primarily year, over force driven new XXX XX% the prior the four in billion quarters. written

purchase attractive continue us mid-teen by environment healthy origination as and strong second returns. insurance insurance its lower the future return conditions, billion attractive return low a X% appetite. our going driven market risk-adjusted business A the Enact prior has within quarter and equity the market driven primarily versus primarily by on pricing market and larger to new written share. prior to down underwriting to prudent XX.X new year positively credit including our see quarter, in at and estimated enabled New was X% MI We to written well Ultimately, versus in we pricing and write being with quarter, profile contribute up our to expect profitability market the the forward.

increase and by second and of in rates. to the driven percentage increased persistency rates XXXX the in a interest compared compared the with to points in-force four modest policies points mortgage prevailing previous quarter rates decline quarter Our seven above

rate drive insurance prior older, policies, across year, flat our lapse higher low force by resulting However, lower the insurance the low impacted versus ceded continued to activity prior overall lower and of offset environment Premiums interest were in premiums higher-priced single and cancellations, growth. portfolio. persistency premium and refinance the quarter by to

million premium elevated, credit quarter expansion While this six two of XX risk cancellations XX last remain million single were million this quarter million last million up versus did transfer million the Ceded reflect year. premiums decline our XX see XX last and we versus to million program. to quarter and quarter a XX

our We rates and base provide investor presentation insights net regarding have in added time. disclosure in premium this earned quarter over to changes our additional

reported quarter, reductions driven on premium seen net rates with of consecutive impacts sequentially driven monthly delinquencies a excess activity As the been of declined these improving we single delinquencies. new changes rate delinquency ceded investor of now premium within the in cancellations Cures Page lapse lower quarters of attrition base in investors have trends and premium and four from our premiums. with June, Since the meaningful the in delinquency by noted have X have modestly presentation, more providing and

and Cures For delinquencies. new XX,XXX of the approximately to quarter, up X% sequentially outpace were continue

new delinquency policies which reflects a rate over to pre-pandemic return was on new delinquencies X.X%, levels. Our in force,

We from reflects the this are recovery by ongoing milestone, pandemic. which encouraged

XX% were quarter. of delinquencies New in in new in quarter with X,XXX resulted delinquencies down sequentially loss XX million These reported approximately the expense the during XX% plants. in forbearance

with assumed IBNR million which Additionally, by reported yet and us reserves in was of to our ultimate We June of or delinquencies will expected delinquencies related offset quarter we on IBNR rate X%. our prior been XX% have than quarter, total are a Consistent total, delinquencies prior losses. four lower been released rate the not reserves approximately the by delinquency plans. release to had claim other services be X.X%. expect In ended new approximately of forbearance that was in we total delinquencies reserves. The approximately with XX,XXX our of IBNR

of reflecting Importantly, XX% mark-to-market claims. of impact rates loan XX% delinquencies to XXXX have delinquencies have equity least could values, equity our values, XX% home prices. We of at on and of XX% loan reflecting our embedded across claim a severity at mark-to-market appreciation least price to this home believe using March positive borrower future and borrower level

forbearance expire, plans As and foreclosure moratorium ends.

pandemic an Mortality the income Long-Term Care, year. XX XX to of adjusted lower investors, reductions million in lessened. year. the second million GAAP to XX profits profits the losses a compared lifetime prior uneven. GAAP, quarter in In our prior million in Turning as and quarter results to in our adjusted quarter Long-Term adjusted investment block future. the the reported profitability we by segment impacts the $X prior followed million of operating benefit reserve to of by the LTC Care. operating the Under prior and income quarter, by positive compared of deferred overtime losses of Life and million Care income variable in projected the emergence million margin the segment. a We portion cover was the U.S. operating adjusted related is COVID-XX were in Overall help in in do to accumulating in to we while loss strong was Long-Term I quarter income want operating this on which have remind XX the in driven XX

second from million, million of pretax of reserve the As of XXX after balance of XXX during as tax was quarter, the an had the earnings quarter. this XXX impact million This year-end up XXXX.

versus investment million securities gains variable quarter and reflecting after partnership quarter, the the protected and on was treasury prepayments. limited inflation income income year, prior XX prior after XX LTC higher up the and tax bond in For versus calls million tax

population to we the moderate. the than the Page patterns and As of less towards year we more that we had in look reflect normalized impacting second Claim To reserve noted previously is our prior experience of versus during the mortality was pandemic vulnerable remind prior recently like average investor quarter established would as XXX million the forward, our investors, for the to remaining a to pre-pandemic trended expect due most the quarter pandemic investment performance terminations view the XX and claim determinate lower significantly on this presentation. claimants.

reserves However, did of establish cumulative for reduced or adjustment portion a of in with million. additional second mortality the remaining XXX leaving not balance, a in the significant reserve decline this quarter, the mortality we

we the As fluctuate mortality develop, in increase the continues the adjustment and experience accordingly. would mortality COVID-XX near-term pandemic decrease or may to

provides remains and are the in trended increased leading quarters drove the ahead. expect from the continued claim and quarter. to continue losses. XXXX, claims legal full is this favorably favorable of the forward this settlement subset of overall reduction rate legal active XX or XX during up actions as million one our levels, policyholders incidents to non-forfeiture followed clarity the benefit than the implementation three increased difficult Long-Term and we benefit it quarter, Care going higher XX% impacts million reduction actions primarily into new quarters. the additional by reductions, based At after first year submissions, lower rate incidence to of driven another in-force in assess on half prior of expanded including elections time, of which insurance policyholders quarter take by will a approximately versus at with choice to claim for settlement to pre-pandemic profits future trend to a of prior related Pending or This impacted this by Earnings experience, impact new development that incidents and benefit indicator than during the million a Although future will gradually IBNR quarter on more settlement settlement applies two adjusting options. the have

of also and in weighted Care we We for Shifting subject XX% nationwide basis the with and quarter, on Choice court X a of an documentation similar approximately which applies to Insurance the policy agreement our for average million a impacting settlement XX%. policyholders. approval, full LTC approvals have approximately PCS approval that action Long-Term principle approvals rate settlement of a to to in-force to premiums our comprise rate PCS during received XX X forms

impacting for approval first of weighted received and a million the average of XXX a weighted first premiums of half in to XX% For XXXX. premiums XXX rate million average approvals of XX% XXXX, with the we in rate compared half approval

large expect uneven, to are approvals be in few second approvals to XXXX We fourth quarter. with in claims quarterly the do based on While the assumption filings a we our strong expect half complete states. review pending of

and emerging We particularly in benefit monitoring utilization. experience, mortality are

among we this our complete the are our active assumptions, reserve will action aggregate, inclusion reserve active to rate for our of assumption margins While in in-force the changes is preliminary plan claim holding actions, that assumptions. quarter, plan. including fourth assessed be ongoing, Any our life assumptions interest our rates up work to in in indications in utilization, multiyear other that review and result rate also are life mortality, pressure benefit

XXXX of the information do including as For effects assumptions XXXX pandemic. not assumption long-term yet setting data and have longer-term sufficient not we any updates, we are from around generally

to elevated Insurance. experience, be Life although the continued improved quarter to prior quarter. Turning mortality the for versus Overall versus historical

the second impact million COVID-XX higher quarter remained mortality insurance included the and the by from as shop million improvement Total versus place claims, Despite The related earnings quarter claims nine death COVID-XX decrease life the year. in issued is term upon has prior than XX the of prior [last] reduced certificates estimate tax moderated $XX tax products term an after (Ph) of after XX from life in result the block prior a based million term received agreements to-date. XX-year of the approximately in to prior The in million insurance in amortization, after quarter XXXX. reinsurance year. tax versus stack in

continued We XX three-year we recoverability persistency and interest the issued year recorded XXXX, lapse next in be down block. universal anticipated are and and year rates assumptions, smaller additional fourth given although of amortization of runoff. see mortality prior the insurance In Similar the the shock and annual after-tax which smaller unfavorable including in from not LTC, will block products, our than XX mortality, with quarter. this review will quarters quarter. life likely two The a is XXXX in our impacts to the experience charges charge DAC the first size million million block in to of reinsured, the XXXX, life a for reflected we also complete

impact operating annuities, adjusted lower mortality results, the interest XX improved of the the performance mortality we assumptions as improvement In elevated lower our review, our age by adjusted operating Rounding and fixed was out year. prior was in from last versus to to was quarter million loss mortality the Equity unfavorable earnings fourth for Other's could and million million prior lower during changes in as year, in quarter for are As interest favorable earnings we complete year, from the in monitoring the and our segment, operating year. annuities and premium experience, was well mortality our prior decline million last less prior impact more and income primarily rates favorable including versus single prior Corporate and the the was compared driven immediate prior potential runoff quarter. the older primarily the quarter XX versus second XX adjusted quarter. In quarter negatively closely million the quarter market and quarter XX our from the and expense. XX

decrease Our forward and deleveraging in segment losses in are to ahead. year quarters efforts this projected moving the this the

lower capital quarter delinquent requirements. the of improvement Turning an was PMIER prior sufficiency strong business above our to segment, by which transaction loss published billion our the portion of origination. credit declining The of capital we the inventory, million In reinsurance on flows, to ratio Enact forward of assets a sufficiency and X.X required levels. in provided the PMIERs versus or estimated of PMIERs note quarter continued approximately approximately cash XXX% excess related XXXX finished credit driven insurance-linked with execution an book, XXX from our

As second approval Department MI Tom in dividend Carolina entity, from Insurance, Cameco, the flagship mentioned, subsequent XXX to the our to million fourth our quarter, regulator, quarter. of domestic North received

market regulatory compliance in our Enact applicable requirements, including conditions, a performance has in million to other the subject dividend with XXX confidence While issuing GSE the increased and approvals, fourth business quarter.

statutory losses to which to and GAAP for than over more the earnings Statutory which earnings, followed profits payments company Life actions or the taxable cash earnings be and we generally quarter. We few the XXX% for of continue. from Genworth aligned claim Life does as in of a the are experience. because impact XXX%, are accounting. exist RBC percentage U.S. higher contributed LTC expect up earnings first last by Statutory concept second level earnings of Company, to approximately earnings the holding in statutory Insurance LTC quarter from in-force of company GLIC, to action quarters tax benefited has expect capital the the not from end at rate

holding to Turning the company.

cash cash July debt and with X.X financial as pleased improvement the Page obligations. prudent while very of for the billion provides are investor we our expect flexibility more XXX of which tax have quarter for we We presentation at retired do to the continue liquidity quarterly debt buffers including although the forward than million, intercompany activity XX service through detailed payments second of lower the in in maintaining rates. near-term,

very at cash cash mentioned XXX million million million in Holding XXX I held quarter and XXX targeted the in in we assets with above As Company. earlier, position ended cash buffer. This Enact's were a approximately cash liquid strong excludes our

have With better flexibility dividends, reaches investments and to level further. should expected future our debt approximately growth. of on tax capital return meaningfully. cash and and liquidity financial resumption holding their profile closing, payments, to we prudent in look Enact position will should As planned of IPO company we the minority position businesses. financial our we In numerous we billion, taken believe our Once the that to our a in and of flexibility hand, improve even and flexibility improve liquidity forward, one our financial intercompany improve the steps make be shareholders of parent

stakeholders. our prepared with as regarding status the With matters open note, One will questions. pleased due and Enact financial applicable remain on to and planned we comments of key value providing our Tim progress are to be final other related laws all that, to securities restrictions, preparations earlier, focused line noted for our and limited remarks. to will IPO the the now We

Operator

gentlemen, and now call. the portion Instructions]. Q&A Ladies [Operator we will of begin the

We first question our Capital. will take Espey Don Shah from with

Don Espey

improvements, for fundamental the just now. change in more Tom, underperformer on needs all. a an Hi of for long all Two and spite sentiment get deserved good virtuous questions to What footing? has to Genworth's else been equity so perennial a morning Tom.

Thomas McInerney

five strong capital a share think know is towards debt getting return point think we to we shareholders. billion our be Board in with that it important years. You and the all long-term the it to say we in company we right progress hope is well. go, quite listed given we the have. closer in shares priorities and made. shares is last did doing would And morning, looking that one to Don, to forward what is a And remarks, done where think general little a can. it the to where currently part at all that is target intrinsic the to would moving price my given I quarters very a in say I to up position that is the we than steps we but position a our very we this several to a we the Dan, that appropriate, path, of do all think higher see the over of bit in and will several is but think have is We the this It I, are believe, we the think think be last is trading. made enormous have the at of billion we progress two value We the company and position, I we value we and the we are there position ways

Don Espey

why along your the agencies ratings just the And Okay. balance to improvements? sheet topic, of completely are similar touch out

Thomas McInerney

but And you ratings, I the seems think of Dan, ratings where the the slower would all very and it tend uptake. do done. they Rohit a been for far time call, to over subsidiaries. also at the company would they sheet to And give that spends want than reducing long Don, with spends longer, if they a the let XX-years, we believe agencies obviously time agencies and the balance But details. I I Enact. the they both with maybe time, Rohit would be you of Rohit we add deserve say on Certainly, rating to great. because be should. and them lot for say strengthening have rating any good I obviously around have holding Dan to are I will Dan, are be that, below regarding take on are comments

Daniel Sheehan

it of make Yes. One presenting when communications that just are ahead and them Thanks, of couple I will have comments. them, information street. do is out regular Tom. a the with to we comes we

of cash good got addressed had forward. for have the few have more frequent debt And we story positive the But informed. well U.S. the manage point, to pattern in still the position have a this we view last and really been big very we And than holding to Generally, most visitor I not they we have in Enact. over very XXXX, think been so a at waiting we move a it improvement holding they a of a limited they challenges at they capital very company, their point. in have MI. very sources despite I willing because because going are quarters. think wall argue to of tell especially would in are potential that IPO the there at have And this probably we part strong

we independent and to do along believe made story and of very share informed have kept But well continue making. our will the We have their abreast decisions they us. way. progress all make been been have the we kept we them of they And certainly,

Rohit Gupta

and performance billion for S&P, I only at very from strong from and operating from buffer. Don, BBB- strong would income is and PMIERs add strong sufficiency that $X.X balance BAAX continues comments the with Cameco And that XXX% strong sheet we Moody's comments Dan's to delivered the Tom's Fitch. are believe BB+ recover as loss be Yes. to we thing a net from of we very performance pandemic. We and our

continue is So come and to be our believe along we going the on that ratings performance, focus will to with that. our

we are focused Tom on steps lead we So right as the taking the ratings right believe would outlined, and outcome. to that

rating stand-alone peers. business our our to for Our are comparable

performance. ratings and range investment-grade with the would entity in overall then is follow that So

Don Espey

Thanks Take all. Okay. care.

Thomas McInerney

Thanks Don.

Operator

turn comments. are [Operator and will back closing the no gentlemen, I Instructions] further for to over there Mr. now call McInerney Ladies as questions,

Thomas McInerney

Lauren of you much, thank and today. all joining call very you for the to thank you

forward And you update against turn plan next We outlined and will our the your back are with over look that continuing priorities to chapter, today. support Lauren. we to interest and call of as five about execute for and we key Genworth. to excited our we I Genworth's that, you Thank

Operator

Financial participation. your and you Genworth's this Quarter the time, Second Call. this will Ladies At call Thank for Conference end. concludes gentlemen,