Key Highlights

  • The quarter ended with a USD 41 million GAAP deficit, or USD 0.11 per diluted share, compared with a USD 47 million gain in the prior quarter and a USD 116 million gain a year ago.
  • Excluding the Closed Block, adjusted Operating Income reached USD 102 million, or USD 0.27 a diluted share, down from USD 112 million sequentially, with the year-earlier period at USD 113 million.
  • Share repurchases totaled USD 80 million at an average of USD 10.05, pushing cumulative Buybacks to USD 998 million, and a USD 500 million program was newly authorized.
  • The Closed Block adjusted operating loss deepened to USD 146 million from USD 96 million, reflecting a USD 111 million pre-tax actual-to-expected shortfall.

Closed Block Results Turn the Third Quarter Negative

Genworth Financial (NYSE:GNW) disclosed its third-quarter 2026 figures on November 4, 2026. The GAAP Bottom Line was a USD 41 million deficit, equal to USD 0.11 for each diluted share, a sharp Reversal from the USD 116 million profit, or USD 0.28 per share, recorded in the same period of 2025. Management assigned most of the shortfall to the Closed Block segment. Excluding that block, adjusted operating income landed at USD 102 million, or USD 0.27 per diluted share, slightly under the USD 112 million from the second quarter and the USD 113 million from a year earlier. Diluted shares averaged 375.5 million, down from 413.3 million, which shrinks the per-share divisor.

Enact Holdings Adds Earnings and Upstreams Cash

Enact Holdings (NASDAQ:ACT) is the Mortgage insurer where Genworth holds a controlling stake. Its adjusted operating income came to USD 132 million, versus USD 134 million a year ago and USD 143 million in the prior quarter, helped by a USD 37 million pre-tax reserve release. Its loss ratio widened to 20% from 15%, as delinquencies rose seasonally and the release was smaller than the USD 45 million recorded last year. New primary insurance written totaled USD 14,106 million, a 7% decline sequentially, which the company tied to higher mortgage rates. Enact's Capital cushion stood at 158% of requirements, or USD 1,827 million above the threshold, and it moved USD 122 million up to Genworth while paying a USD 0.24 quarterly dividend.

Legacy Insurers Post a Steep Statutory Loss as Capital Ratio Declines

Long-term care is the pressure point. Statutory pre-tax results for the legacy Business show a USD 143 million loss, and long-term care alone accounts for USD 151 million of that figure, with claims expected to keep rising as policies age. Within the Closed Block, the adjusted operating loss widened as terminations slowed and benefit usage climbed. The risk-based capital ratio for the legacy insurers fell to 274%, compared with 286% three months earlier and 303% a year back. At the holding company, cash and Liquid assets climbed to USD 320 million from USD 215 million, roughly USD 200 million of which is earmarked for future obligations, even after USD 80 million in buybacks and USD 21 million of discounted Debt repurchases.

Where Things Stand

The Closed Block is what pulled the quarter under water. Outside that segment, Genworth still produced USD 102 million of adjusted operating income, though long-term care costs keep mounting and the legacy capital ratio has slipped for two quarters. Watch the November 5, 2026 earnings calls, CareScout's growth after 1,532 matches this quarter, and how quickly the new USD 500 million authorization gets used.