Genworth Financial Inc reported a net income of $47 million for the second quarter of fiscal year 2026, driven by strong performance from its mortgage insurance subsidiary, Enact.

The company’s adjusted operating income, excluding the closed block, stood at $112 million. Enact delivered an adjusted operating income of $143 million to Genworth and returned $103 million in capital during the quarter, supporting ongoing share repurchases.

Strategic Priorities and Capital Allocation

Genworth continues to focus on three core areas: leveraging Enact for shareholder value, expanding CareScout, and managing its closed block. The company repurchased $62 million worth of shares at an average price of $8.74 per share during the quarter. Since May 2022, total buybacks amount to approximately $922 million at an average price of $6.48 per share.

For the full year 2026, Genworth expects to receive between $445 million and $485 million from Enact. The company plans to allocate $225 million to $250 million toward share repurchases for the year.

CareScout Expansion

CareScout Services generated $6 million in revenue for the quarter, totaling $12 million for the first half of the year. The network expanded to over 1,100 home care locations, with a target of integrating 2,000 senior living communities by year-end. CareScout facilitated approximately 1,450 matches in the quarter, bringing the first-half total to 2,950, more than double the prior year’s figure.

The company remains on track to invest $50 million to $55 million in CareScout Services during 2026. A new Worksite product is set to launch in at least 34 states in the third quarter.

Closed Block and Investment Portfolio

The closed block segment reported an adjusted operating loss of $110 million, primarily due to a liability remeasurement loss of $127 million pre-tax. In the second quarter, Genworth secured $46 million in gross incremental premium approvals, compared with $41 million in the prior year period.

The investment portfolio remains conservatively positioned, with new money yields at approximately 6.2% and alternative assets targeting 12% returns. Holding company cash and liquid assets ended the quarter at $215 million.

What the Numbers Show

A divergence exists between operational growth and GAAP volatility in the closed block. While Enact drove positive adjusted operating income of $143 million, the closed block’s $110 million adjusted operating loss was heavily influenced by a $127 million pre-tax actual-to-expected variance. This highlights that while cash flows from Enact are robust, GAAP earnings remain sensitive to long-tail liability remeasurements, which management noted do not impact cash flows or economic value.

Genworth Financial (NYSE: GNW) has announced a new Family Caregiver Benefit that allows eligible long-term care insurance policyholders in certain states to use their benefits for qualified care provided by family members. This voluntary election offers greater flexibility by enabling payments for non-medical care delivered by relatives, aligning coverage with modern caregiving realities.

The initiative responds to significant demographic shifts and workforce constraints. More than 59 million Americans currently provide care for adult family members or friends, while demand for professional caregivers continues to outpace supply. By permitting policyholders to modify certain policy features in exchange for this benefit, Genworth aims to support families who rely on trusted individuals rather than external facilities.

Benefit structure and payment limits

The Family Caregiver Benefit is designed as a voluntary coverage election. Eligible policyholders may choose to adjust specific policy features to access this option. When qualified family members provide care, the benefit can pay up to 75% of the median hourly cost for non-medical care. This rate is based on the current annual CareScout Cost of Care Survey.

Jamala Arland, CEO of Genworth Insurance, stated that the benefit provides another option to align coverage with how care is actually delivered. Elizabeth Chu, Chief Product Officer, emphasized that long-term care insurance must reflect current delivery methods as customer needs evolve.

Strategic context and availability

This offering is part of Genworth’s broader Benefit Solutions strategy, which focuses on helping policyholders understand and adapt their coverage over time. The company describes a shift from event-driven interactions to a continuous approach centered on education and planning throughout the aging journey.

The Family Caregiver Benefit is expected to become available on a state-by-state basis following regulatory approvals. Genworth will provide additional details regarding eligibility and availability as these approvals are received. The company notes that the ability to obtain applicable regulatory approvals remains subject to inherent uncertainties.