NYSE$GNW

Genworth Financial Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Genworth reported strong results driven by the Enact IPO and in-force rate actions in the U.S. life insurance segment.

Genworth Financial reported a net income of $314 million and adjusted operating income of $239 million for the third quarter of 2021. The successful completion of the Enact IPO improved the company's financial position and drove ratings improvements. The U.S. life insurance segment benefited from long-term care insurance results.

  • Completed IPO of Enact with net proceeds of $529 million to Genworth, reducing ownership of Enact from 100 percent to 81.6 percent
  • Received ratings upgrades from Moody’s Investors Service and S&P Global Ratings following the IPO, in recognition of improvement in Genworth Holdings, Inc.’s credit risk profile and increased financial flexibility
  • Significantly reduced holding company debt, including the retirement of the AXA S.A. (AXA) promissory note ($296 million) and AXA’s corresponding release of the 19.9% of Enact common stock pledged as collateral for the note, as well as the redemption of the remaining principal amount of the September 2021 debt maturity ($513 million)
  • Continued progress against LTC multi-year rate action plan, with $117 million in annual premium rate increases and benefit reductions approved in the third quarter of 2021, bringing total net present value from LTC rate actions to over $16.3 billion since 2012

Headline financials

Total Revenue

$2.07B

Previous: $2.42B-14.5%
EPS (adj)

$0.46

Previous: $0.26+76.9%
Adjusted Operating Income

$239M

Previous: $132M+81.1%
Holding Co. Cash

$638M

Previous: $814M-21.6%
Free Cash Flow

$314M

Previous: $418M-24.9%
Net Income

$314M

Previous: $418M-24.9%
Operating Income

$239M

Previous: $132M+81.1%
Gross Profit

$804M

Previous: $984M-18.3%
Cash & Equivalents

$75.3B

Previous: $740M+10073.1%
Total Assets

$99.9B

Previous: $105B-4.8%
Stock-Based Comp

$7M

Previous: $3M+133.3%

Revenue & EPS history

Genworth · Revenue · Quarterly

$2.07B

Q3 2021-14.5%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Genworth did not provide specific forward guidance in this earnings report.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-1.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+3.1%

Avg return

30 days after

47%

34 / 72 earnings

Positive

+25.4%

Q2 2016

Best reaction

-37.7%

Q3 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%+2.1%-2.5%
Q4 2025+2.6%+1.7%+0.1%
Q3 2025+0.2%-0.9%+1.1%
Q1 2025-1.0%+0.1%+2.8%
Q4 2024-7.9%+1.0%-9.0%
Q3 2024+7.0%+9.9%+14.3%
Q2 2024-3.2%-9.5%+2.5%
Q1 2024+8.9%+12.3%+6.1%
Q4 2023-2.8%+0.0%+2.8%
Q3 2023-9.5%-7.9%+2.6%
Q2 2023+0.8%-3.1%-10.5%
Q1 2023-13.5%-4.4%+3.3%
Q4 2022-5.2%+3.0%+6.6%
Q3 2022+1.7%-2.4%+8.4%
Q2 2022-1.6%-0.7%-0.7%
Q1 2022+11.1%+9.2%+10.0%
Q4 2021+1.5%+1.3%+3.6%
Q3 2021-1.1%-0.7%-9.8%
Q2 2021+0.6%+7.5%+11.3%
Q1 2021-1.8%-2.5%-4.5%
Q4 2020-18.2%-20.2%-15.3%
Q3 2020+3.7%+4.9%+16.1%
Q2 2020-13.7%-12.0%+1.7%
Q1 2020-10.7%-8.1%-1.2%
Q4 2019-3.2%+18.2%-7.6%
Q3 2019+3.5%+0.0%-4.5%
Q2 2019+2.3%+1.0%+14.6%
Q1 2019-1.3%+0.5%-20.2%
Q4 2018-1.9%-4.4%-21.2%
Q3 2018+1.4%-1.4%+11.8%
Q2 2018+1.7%+0.0%+1.3%
Q1 2018+7.6%+9.4%+24.6%
Q4 2017+2.8%-4.2%+5.9%
Q3 2017+0.9%+1.5%+0.3%
Q2 2017-1.5%-0.3%+0.0%
Q1 2017+1.3%+0.8%-2.4%
Q4 2016-3.1%-2.0%+13.7%
Q3 2016-4.1%-3.6%-1.7%
Q2 2016+25.4%+24.6%+68.2%
Q1 2016+16.3%
Q4 2015-12.1%
Q3 2015-11.2%
Q2 2015-18.9%
Q1 2015+13.1%
Q4 2014+5.7%
Q3 2014-37.7%
Q2 2014-14.3%
Q1 2014+5.1%
Q4 2013+4.4%
Q3 2013-0.2%
Q2 2013-2.2%
Q1 2013+3.3%
Q4 2012-2.7%
Q3 2012+8.8%
Q4 2011+6.6%
Q2 2012-12.2%
Q1 2012+2.2%
Q3 2011-0.4%
Q2 2011-2.6%
Q1 2011+0.3%
Q4 2010+1.1%
Q3 2010-7.9%
Q2 2010-13.4%
Q1 2009-6.8%
Q1 2010+5.7%
Q4 2007-0.3%
Q4 2009-0.3%
Q4 2008-0.3%
Q3 2008+2.4%
Q3 2009+2.4%
Q2 2009-1.7%
Q2 2008-1.7%

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