GNW - Genworth Q3 earnings and revenue drop hurt by challenging macro factors

Genworth ( NYSE: GNW ) Q3 earnings and revenue declined from both the previous and year-ago quarter as premiums slipped, in the face of a challenging macroeconomic environment.

Q3 adjusted EPS of $0.31, exceeding the sole analyst estimate of $0.23, dropped from $0.34 in the prior quarter and $0.46 in the year-ago quarter. Genworth ( GNW ) stock was unchanged at 5:26 PM ET in after-hours trading.

Revenue of $1.84B slipped from $1.88B in Q2 and from $2.07B in the year-ago quarter. Premiums of $927M fell from $931M in Q2 and from $947M in Q3 2021.

Long-term borrowings of $1.62B a Sept. 30 declined from $1.90B at Dec. 31, 2021.

"Genworth ( GNW ) achieved our debt target, further stabilized our legacy LTC book and initiated a program to return capital to our shareholders, while also delivering solid financial results,” said President and CEO Tom McInerney. “Looking ahead, Genworth expects to have higher free cash flow going forward, which offers financial flexibility and greater opportunity for increased capital return to shareholders and investments in growth.”

Q3 net investment income of $808M increased from $787M in the prior quarter and fell from $859M in the year-ago quarter.

Adjusted operating income by segment:

Enact — $156M vs. $167M in Q2 and $134M in Q3 2021.

U.S. Life Insurance — $11M vs. $21M in the prior quarter and $93M in the year-ago quarter.

Runoff — $9M vs. $2M in the prior quarter and $11M in the year-ago quarter.

Book value of $18.49 at Sept. 30, 2022 declined from $23.28 at June 30.

Q3 total benefits and expenses of $1.65B increased from $1.59B in the prior quarter and declined from $1.70B in the year-ago quarter.

Conference call on Nov. 2 at 9:00 AM ET

Earlier, Genworth Financial non-GAAP EPS of $0.31 beats by $0.08, revenue of $1.84B

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