GNW - Genworth Q4 earnings revenue rise company achieves debt target

Genworth ( NYSE: GNW ) stock gained 1.6% in Monday after-hours trading after its Q4 earnings and revenue increased. The year's accomplishments included achieving its long-term holding company debt target and returning capital to shareholders for the first time in more than 13 years, said President and CEO Tom McInerney.

Q4 adjusted EPS of $0.33, beating the sole analyst estimate of $0.23, rose from $0.31 in Q3 and from $0.32 in Q4 2021.

Revenue rose to $1.90B from $1.84B in the prior quarter and from $1.74B in the year-ago period. Premiums of $927M were unchanged from Q3 and rose from $576M in Q4 2021.

Long-term borrowings of $1.66B at Dec. 31, 2022 vs. $1.62B at Sept. 30 and $1.90B at Dec. 31, 2021.

Genworth's holding company ended Q4 with $307M of cash and liquid assets, an increase of $145M from the end of the prior quarter, primarily from capital returns of $168M it received from Enact ( NASDAQ: ACT ) late in Q4 2022.

Q4 net investment income of $787M declined from $808M in the prior quarter and from $866M in the year-ago quarter. Net investment income decreased from the prior quarter as a result of lower income from limited partnerships and the inflation impact on Treasury Inflation-Protected Securities, primarily in the LTC business. Net investment income fell from a year ago on lower variable investment income, primarily driven by lower income from bond calls, commercial mortgage loan prepayments and limited partnerships.

Core yield for the current quarter was 4.81% vs. 4.93% in the prior quarter.

Adjusted operating income by segment:

• Enact ( ACT ) — $120M vs. $156M in Q3 and $125M in Q4 2021.
• U.S. Life Insurance — $38M vs. $11M in the prior quarter and $41M in the year-ago period.
• Runoff — $17M vs. $9M in the prior quarter and $16M a year earlier.

Book value of $20.15 per share at Dec. 31, 2022, rose from $18.49 at Sept. 30 and dropped from $30.57 at Dec. 31, 2021.

Q4 total benefits and expenses of $1.64B slipped from $1.65B in the prior quarter and increased from $1.48B in the year-ago period.

Conference call on Feb. 7 at 9:00 AM ET.

Earlier, Genworth Financial ( GNW ) non-GAAP EPS of $0.33 beats by $0.10, revenue of $1.9B.

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