GNW 10-K & 10-Q changes, risk factors and insider trading

CareScout offers fee-based services, advice and consulting through CareScout Services and plansaging-care tofunding offer traditional insurance products,solutions, including long-term care insurance, through CareScout Insurance. These offerings constitute a new linelines of business we are pursuing. There are risks and uncertainties associated with any new line of business. In developing and marketing new lines of business and new products and services, we expecthave to investinvested significant time and resources, including capital,capital. andAs we continue to invest in our growth initiatives, the attention of management and our Board of Directors could be diverted from other business operations. Our planned timeline for the development and introduction of new products or services may not be achieved, our expenditures may exceed revenues for longer than we anticipate, and our price and profitability targets may not prove feasible. Our ability to achieve anticipated business performance and financial results from CareScout could be adversely impacted for a variety of reasons and unforeseen events, including but not limited to, lower than anticipated customer demand, care providers not meeting our credentialing standards or delays in the credentialing process, higher capital needs, experience that differs from our assumptions, staffing shortages and continuedextended workflow disruptions, and impediments to Genworth Holdings’ liquidity caused by, among other things, downturns in the U.S. economy that reduce its strategic investments in CareScout. Furthermore, if customers do not perceive our new offerings as providing significant value, they may fail to accept our new products and services in the way we anticipate. External factors, such as competitive alternatives, including potential U.S. federal government programs, shifting market preferences and commercial and/or regulatory challenges, including the impact of our legacy U.S. life insurance subsidiaries on our ability to achieve desired financial strength ratings or obtain the necessary regulatory approvals offor new insurance products offered by CareScout Insurance, may also impact the successful implementation of a new line of business or a new product or service. Failure to successfully manage these risks in the development and implementation of our new lines of business or new products or services, specificallyand ourspecifically, the inability to achieve anticipated business performance and financial results from CareScout, could have a material adverse effect on our business, results of operations and financial condition.

Many factors, and changes in these factors, can affect future experience, including but not limited to: interest rates; investment returns and volatility; economic and social conditions, such as inflation, unemployment, home price appreciation or depreciation, and health care experience (including the type of care and cost of care); policyholder persistency or lapses (i.e., the probability that a policy or contract will remain in-force from one period to the next); insured mortality (i.e., life expectancy or longevity); insured morbidity (i.e., frequency and severity of claim, including claim termination rates, claim incidence, duration of claim and benefit utilization rates); future premium rate increases and associated benefit reductions; expenses; and doctrines of legal liability and damage awards in litigation. Because these factors are not known in advance, change over time, are difficult to accurately predict and are inherently uncertain, we cannot determine with precision the ultimate amounts we will pay for actual claims or the timing of those payments.

Long-TermClosed Care InsuranceBlock Segment

For our long-term care insurance policies, actual persistency in later policy durations that is higher than our expected persistency assumptions could have a negative impact on profitability. If these policies remain in-force longer than we assumed, then we could be required to make greater benefit payments than we anticipated. A significant number of our long-term care insurance policies have experienced higher persistency than we had originally assumed, which has resulted in higher claims and an adverse effect on profitability.

In addition, if morbidity rates are higher or mortality rates are lower than our valuation assumptions, we could be required to make greater payments and thus establish more reserves under our long-term care insurance policies than we had expected, and such amounts could be significant. Among other factors, changes in economic and interest rate risk, staffing shortages, socio-demographics, behavioral trends (e.g., location of care and level of benefit use) and medical advances, may also have a material adverse impact on our future claims trends. For example, the impact of inflation on claims could be more pronounced for our long-term care insurance businessproducts than our other businesses given the “long tail”long-duration nature of thislong-term business.care insurance. We have observed an increase in the cost of care in recent years due in part to elevated inflation, resulting in higher claim payments in our long-term care insurance business.products in Closed Block. To the extent inflation or other factors cause health care costs to increase more than we anticipated, we will be required to increase our reserves which could negatively impact our profitability. Although we considerconsidered the potential effects of inflation when setting premium rates, our premiums may not fully offset the effects of inflation and may result in our underpricing of the risks we insure. Given these inherent challenges, our ability to precisely forecast future claim costs for long-term care insurance is limited.

We use best estimate assumptions for our long-term care insurance businessproducts, and the impacts of assumption updates are reflected as liability remeasurement gains or losses in the incomestatements statementof operations based on issue-year cohorts. As a result, cash flow assumption updates as well as actual variances from expected experience on these long-duration products will continue to drive volatility in our long-term care insurance results.results in our Closed Block segment. Approximately 50% of our cohorts currently have net premium ratios capped at 100%. The net premium ratio represents the portion of the gross premiums required to provide for all benefits and certain expenses in our long-term care insurance business.products. These capped cohorts are generally our older long-term care insurance policies, largely sold prior to 2003. The other approximately 50% of our cohorts have a net premium ratio of less than 100% and are currently expected to be profitable.profitable, on a cohort basis. We would expect ongoing income statementearnings impacts and volatility related to assumption updates and variances between actual and expected experience in our older, unprofitable capped cohorts going forward. Conversely, ourOur profitable uncapped cohorts have to date had a more modest earnings impact related to assumption updates and variances between actual and expected experience, to date, with a portion of the impact reflected in current period results and the remaining majority of the impact recognized over the life of the cohort. However, as we move further from the January 2021 transition date of the accounting guidance for long-duration insurance contracts adopted on January 1, 2023, we may see increased volatility from the uncapped cohorts, with more of the impact related to assumption updates and actual variances from expected experience recognized immediately in net income.income (loss). While quarterly variations are typically expected to be relatively small compared to the overall size of our liability for future policy benefits of $43.0$44.1 billion, at the locked-in discount rate, for our long-term care insurance businessproducts as of December 31, 2024,2025, these variations have had, and may in the future have, a material impact on our quarterly results of operations and can result in material losses in our long-term care insurance business.products in our Closed Block segment.

See “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Long-TermClosed Care InsuranceBlock segment” for the impacts of cash flow assumption updates and actual variances from expected experience.

In-force ratemanagement actions

The adequacy of our current long-term care insurance reserves in Closed Block depends significantly on our assumptions regarding our continuing ability to successfullyexecute executein-force management actions, including our multi-year in-force rate action plan (through premium rate increases and associated benefit reductions.reductions) and other reduced benefit options outside of our in-force rate action plan. In measuring our long-term care insurance reserves under U.S. GAAP, ourwe in-force rate actioninclude assumptions includefor significant future premium rate increases and associated benefit reductions resulting from rate actions that have been approved, as well as assumptions for rate actions that are anticipated to be approved (including premium rate increases and associated benefit reductions not yet filed) under our in-force rate action plan.

As part of our cash flow testing process for our U.S. lifelegacy insurance subsidiaries, we also consider incremental benefits from expected future in-force rate actions in our long-term care insurance products that help mitigate the impact of deteriorating experience. We may not be able to obtain regulatory approval for the future in-force rate actions we assumed in connection with our cash flow testing for our U.S. lifelegacy insurance subsidiaries. If we do not obtain regulatory approval, we may be required to significantly further increase statutory reserves which could have a material adverse effect on our business, statutory results of operations and financial condition.

The NYDFS, which regulates GLICNY, our New York insurance subsidiary, also requires specific adequacy testing scenarios that are generally more severe than those deemed acceptable in other states. Moreover, the required testing scenarios by the NYDFS have a disproportionate impact on our long-term care insurance products. In addition, we use New York specific experience for setting assumptions in our long-term care insurance products in GLICNY. While the NYDFS generally does not permit in-force rate increases for long-term care insurance to be used in asset adequacy analysis until such increases have been approved, it has allowed GLICNY to incorporate recently filed in-force rate actions in its asset adequacy analysis prior to approval in the past. As a result, after discussions with the NYDFS and through the exercise of professional actuarial judgment, GLICNY incorporated assumptions for future in-force rate actions for long-term care insurance products in its 2024 and 2023 asset adequacy analysis to offset the emerging adverse experience for these products. With these assumption updates, GLICNY’s 2024 and 2023 asset adequacy analysis produced a negative margin. To address the negative margin, GLICNY recorded an incremental $79 million and $87 million of additional statutory reserves in 2024 and 2023, respectively,2024, which resulted in ana Company Action Level RBC ratio of 200% and 202% for GLICNY as of December 31, 20242024. For GLICNY’s 2025 asset adequacy analysis, which included a conditional approval of an in-force rate action but not an assumption for additional future in-force rate actions, the margin was positive. Accordingly, no additional statutory reserves were required to be recorded and 2023,GLICNY’s respectively.Company Action Level RBC ratio was 207%. For additional information on GLICNY asset adequacy testing, see note 20 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” If the NYDFS nodisapproves longeror allowslimits a filed in-force rate action in the future, or does not allow GLICNY to incorporate assumptions in its asset adequacy analysis for future in-force rate actions it may file in itsthe asset adequacy analysis,future, this wouldcould result in a material decrease in GLICNY’s cash flow testing margin and wouldcould require GLICNY to further significantly increase its statutory reserves. This wouldcould have a material adverse effect on GLICNY’s financial condition and RBC ratio.

For additional information on our in-force rate actions inon our long-term care insurance business,products, see “—The inability to obtainexecute in-force management actions (including obtaining in-force rate action increases (including increased premiums and associated benefit reductionsactions) inon our long-term care insurance businessproducts in Closed Block could have a material adverse impact on our business, including our results of operations and financial condition.”

If mortality rates are higher than our pricing and valuation assumptions, we could be required to make greater payments than we had projected under our life insurance policies. For our universal life insurance contracts, increased persistency that is the result of the sale of contracts by the insured to third parties that continue to make premium payments on contracts that would otherwise have lapsed, also known as life settlements, could have an adverse impact on profitability because of the higher claims rate associated with settled contracts. For our deferred annuity products with guaranteed minimum withdrawal benefits and guaranteed annuitization benefits, actual persistency that is higher than our persistency assumptions could have an adverse impact on profitability because we could be required to make withdrawal or annuitization payments for a longer period of time than the account value would support.

The risk that our lapse experience may differ significantly from our valuation assumptions is also significant for our term life and term universal life insurance products. These products generally have a level premium period for a specified period of years (e.g., 10 years to 30 years) after which the premium increases, which may be significant. If the frequency of lapses is higher than our expected reserve assumption, we would experience lower premiums and could experience higher benefit costs.costs, In addition,as it may be that healthy policyholders are the ones who lapse (as they can more easily replace coverage), creating adverse selection where less healthy policyholders remain in our portfolio. We have experienced both a greater frequency of policyholder lapses and more severe adverse selection after the level premium period than originally assumed, and this experience could continue or worsen. If lapse experience continues or worsens on future 10-, 15- and 20-year level premium period blocks, we would expect volatility in premiums and mortality experience, which would reduce profitability in our term life insurance products, in amounts that could be material, if persistency is lower than our original assumptions. For additional information on our term life insurance reserves, including select sensitivities, see “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates—Liability for future policy benefits.”

Item 7 of our Annual Report on Form 10-K generally discusses year-to-year comparisons between the years ended December 31, 20242025 and 2023.2024. DiscussionsIn addition, this Form 10-K also includes discussions of information related to 20222023 and year-to-year comparisons between 20232024 and 20222023 arefor notour includedClosed Block segment, which has been recast to reflect the change in thisour Formreportable 10-K.segments. ComparativeAll other detailed comparative discussions between 20232024 and 20222023 that were not impacted by the change in reportable segments, including our Enact segment, can be found in “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023.2024.

Our chief operating decision maker (“CODM”) evaluates performance and allocates resources based on a non-GAAP financial measure entitled “adjusted operating income (loss).” Our CODM evaluates adjusted operating income (loss) as a key measure to assess performance and support new business initiatives because the measure more accurately reflects overall operating performance, as it minimizes the impact of macroeconomic volatility. Our legacy U.S. life insurance subsidiaries, which comprise our Long-TermClosed CareBlock Insurance and Life and Annuities segments,segment, are managed on a standalone basis; therefore, we do not allocate capital to our Long-TermClosed CareBlock Insurance and Life and Annuities segments.segment.

Adjustments to reconcile net income (loss) to adjusted operating income (loss) assume a 21% current tax raterate, plus any associated deferred taxes, and are net of the portion attributable to noncontrolling interests. Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments.

The following table presents a reconciliation of net income (loss) to adjusted operating income (loss) for the years ended December 31:

Earnings (loss) per share

The following table provides basic and diluted earnings (loss) per common share for the periods indicated:

Below is an executive summary of our consolidated financial results for the periods indicated. Amounts included within this “Executive Summary of Consolidated Financial Results” and in our discussion of adjusted operating income (loss) within “—Results of Operations and Selected Financial and Operating Performance Measures by Segment” are net of taxes, unless otherwise indicated. After-tax amounts assume a tax rate of 21%.

Significant Developments and StrategicKey Highlights

The discussion of our business and operations should be read together with the risk factors contained in Item 1A of our 2025 Annual Report on Form 10-K, which together describe various risks and uncertainties to which we are or may become subject. These risks and uncertainties have the potential to affect our business, financial condition, results of operations, cash flows, strategies or prospects in a material and adverse manner. There have been no material changes to the risk factors set forth in the above-referenced filing as of MarchJune 31,30, 2026.

This report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,” “may” or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Examples of forward-looking statements include statements we make relating to potential dividends or share repurchases; future return of capital by Enact Holdings, Inc. (“Enact Holdings”), including share repurchases, and quarterly and special dividends; the cumulative economic benefit of approved and future rate increases and benefit reductions included in our multi-year in-force rate action plan and other reduced benefit options associated with the long-term care insurance products in our Closed Block segment; planned investments in and our outlook for new lines of business or new insurance and other products and services, such as those we are pursuing with our CareScout business (“CareScout”), including through our CareScout services business (“CareScout Services”) and our CareScout insurance business (“CareScout Insurance”); the expected benefits and/or synergies of the Seniorly, Inc. (“Seniorly”) acquisition; future financial performance, including the expectation that quarterly adverse variances between actual and expected experience could persist resulting in future remeasurement losses in our long-term care insurance products in our Closed Block segment; the resolution of the appeal or any potential litigation recovery amounts in connection with the AXA S.A. (“AXA”) and Santander Cards UK Limited (“Santander”) litigation, and Genworth’s planned use of proceeds from any recovery in connection with the litigation, including share repurchases, debt repurchases and investments in new businesses; future financial condition and liquidity of our businesses; and statements we make regarding the outlook of the U.S. economy.

•the occurrence of natural or man-made disasters, including geopolitical tensions and war (including the Russian invasion of Ukraine, instabilityongoing inconflict between Iran and the MiddleUnited EastStates, and economic competition between the United States and China, among others), a public health emergency, including pandemics, or climate change;

•other factors described in the risk factors contained in Item 1A of our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on February 27, 2026.

We continue to create shareholder value through Enact’s growing market value and capital returns. Enact Holdings provided $99$103 million of capital returns to Genworth Holdings in the firstsecond quarter of 2026. Enact Holdings expects to return $550 million to $600 million of capital to its shareholders for the full year 2026, an increase from its earlier expectation of approximately $500 million. Based on our approximate 81% ownership, we expect to receive $445 million to $485 million in capital returns from Enact Holdings for the full year 2026. We expect capital returns from Enact will continue to benefit our shareholders by funding our strategic initiatives, including new CareScout products and services, as well as share repurchases and opportunistic debt reduction. Since the initial authorization of Genworth Financial’s share repurchase program in May 2022 and through AprilJuly 30,31, 2026, we have repurchased $875$922 million worth of shares of Genworth Financial’s common stock. For additional information on our share repurchase program, see “—Liquidity and Capital Resources.”

During the first quarter of 2026, CareScout Services added our first senior living communities to the CareScout Quality Network and continued expanding the home care provider network, with approximately 97% coverage of the age 65 and over U.S. census population across all 50 states. We also continued to see growth in the number of CareScout members who received first-time home care services or moved into a senior living community, including through the direct-to-consumer channel.community. As we continue tofurther integrate senior living communities from our acquisition of Seniorly, Inc.,communities, we are building a more comprehensive network that can support individuals across different stages of the aging journey,journey and over time, we expect will complement our existing home care model with a more diversified and scalable revenue stream. We remain focused on optimizing coverage and pricing efficiency, along with providing a quality experience, to drive long-term scalability. As the CareScout Quality Networknetwork continues to expand and brand awareness grows, we anticipate increased traction across the platform.platform, Weincluding alsogreater expectutilization moreby Genworth policyholders to utilize the network providers,policyholders, helping to stretch their benefit dollars further while generating claims savings in the Closed Block over time.

We continue to expand our offerings to employers and select affinity groups as we seek to introduce the CareScout brand to more consumers, broaden access to our services and generate additional fee-based revenues over time. We expect to invest approximately $50 million to $55 million in CareScout Services for the full year 2026 asto we continue tofurther scale the business. This investment will support the continued build-out of our technology-enabled platform, the addition of new products and care settings, and growth across both consumer and business-to-business channels.

We continue to build out differentiated product offerings and expand our distribution capability in CareScout Insurance. Our Care Assurance worksite product, a version of CareScout Insurance’s individual standalone long-term care insurance product,product that will be available through employers, is ready for launch in the third quarter of 2026. The Care Assurance,Assurance isofferings clearlyare differentiated in the long-term care insurance market by giving customers and their families access to a more holistic aging experience through CareScout Services, including access to the CareScout Quality Network, wellness support tools and care planning services. While we expect adoption to build gradually, we believe thisthe productCare createsAssurance offerings create significant value for both our customers and distribution partners. We plan to launch our Care Assurance worksite product later this year, which will broaden access through employers. We are also developing additional offerings, including hybrid long-term care insurance products, as part of a broader set of funding solutions designed to meet evolving consumer needs and solveaddress critical gaps in retirement income and retirement security in the marketplace. We do not anticipate any additional capital investment in CareScout Insurance in 2026 following the $85 million investment made in 2025 to enable the launch of the business.

While it will take time to scale these businesses, we believe our investments in CareScout Services and CareScout Insurance will drive sustainable future growth for Genworth and are aligned with our overarching priority to maximize long-term value for our shareholders. We will continue to strive to maintaintake a disciplined approach in our capital allocation strategy, balancing investments in CareScout growth initiatives with returning value to shareholders and opportunistically retiring debt.

We continue to actively manage our self-sustaining, customer-centric legacy insurance subsidiaries, comprising long-term care insurance, life insurance and annuity products included in our Closed Block segment. Our long-term care insurance multi-year in-force rate action plan continues to be our most effective tool in supporting this strategic priority. We achieved an estimated cumulative economic benefit of approximately $34.5$34.8 billion, on a net present value basis, of approved rate increases and benefit reductions from 2012 through the firstsecond quarter of 2026. As we manage our legacy insurance subsidiaries on a standalone basis, these entities will continue to rely on their statutory capital, significant reserves, prudent management of the in-force blocks and other management actions, including our long-term care insurance in-force rate actions, to satisfy policyholder obligations. For additional information regarding our in-force rate actions, see “—Results of Operations and Selected Financial and Operating Performance Measures by Segment—Closed Block segment.”

•Changes in fair value of market risk benefits and associated hedges consist of fair value changes of market risk benefits (other than changes attributable to instrument-specific credit risk), net of changes in the fair value of non-qualified derivative instruments that support our market risk benefits.benefits, along with other reserve changes.

We use non-U.S. GAAP (“non-GAAP”) financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss), excluding Closed Block.” These non-GAAP financial measures are evaluated by management and our Board of Directors to assess performance, manage capital allocation, and in the case of adjusted operating income (loss), excluding Closed Block, as a basisfactor for determining annual incentive awards and compensation for senior management. These measures have been established to more accurately reflect overall operating performance, as they minimize the impact of macroeconomic volatility. Management believes using adjusted operating income (loss), excluding Closed Block as a consolidated measure of profit or loss better aligns with our strategy and capital allocation framework, as no capital is allocated to the Closed Block segment, which operates on a standalone basis, using existing capital and reserves, along with in-force management actions, to meet future obligations. We also continue to report adjusted operating income (loss) for the Closed Block segment, as we believe it is the appropriate measure of profit or loss in accordance with segment reporting. Although adjusted operating income (loss) and adjusted operating income (loss), excluding Closed Block are non-GAAP financial measures, we believe these measures aid in understanding the underlying performance of our operations.

•the after-tax effects ofnet income (loss) attributable to noncontrolling interests,

A component of our net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. We exclude net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the saleitems oflisted businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating itemsabove from adjusted operating income (loss) because, in our opinion, they are not indicative of overall operating performance.

Adjusted operating income (loss), excluding Closed Block is derived from adjusted operating income (loss) and excludes adjusted operating income (loss) of our Closed Block segment. While some of thesethe excluded items may be significant components of net income (loss) determined in accordance with U.S. GAAP, we believe that adjusted operating income (loss), and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss), excluding Closed Block, are appropriate measures that are useful to investors because they identify the income (loss) attributable to theour ongoing operations of the business.operations. Adjusted operating income (loss) and adjusted operating income (loss), excluding Closed Block are not measures of complete profitability; therefore, they should not be considered in isolation or viewed as substitutes for U.S. GAAP net income (loss). In addition, our definition of adjusted operating income (loss) may differ from the definitions used by other companies. In reporting non-GAAP measures in the future, we may make other adjustments to exclude items we do not consider reflective of our core operating performance. We may also disclose other non-GAAP operating measures in the future if we believe that such measures would be helpful to investors in their evaluation of our company.

(1)Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million for both the three months ended MarchJune 31,30, 2025 and $1 million and $2 million for the six months ended June 30, 2026 and 2025.2025, respectively.

(2)Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(16) million and $1$(5) million for the three months ended MarchJune 31,30, 2026 and 2025, respectively, and $(7) million and $(4) million for the six months ended June 30, 2026 and 2025, respectively.

•Net income for the three months ended MarchJune 31,30, 2026 and 2025 was $47 million and $54$51 million, respectively, and adjusted operating income, excluding Closed Block was $109$112 million andfor $114both million, respectively.periods.

•AdjustedFor the three and six months ended June 30, 2026, adjusted operating income, excluding Closed Block reflected strong operating performance in Enact mostly attributable to favorable cure performance, resulting in a pre-tax reserve releasereleases of $39$37 million inand the$76 currentmillion, year,respectively, partially offset by continued investment in CareScout Services and interest expense on Genworth Holdings’ debt.

•Mortgage insurance portfolio. New insurance written increased 30%15% in the firstsecond quarter of 2026 compared to the firstsecond quarter of 2025. Enact’s primary persistency rate was 80% and 84%82% in the firstsecond quarter of 2026 and 2025, respectively.

•PMIERs compliance. Enact’s PMIERs sufficiency ratio was 162%161% or $1,919$1,894 million above the PMIERs requirements as of MarchJune 31,30, 2026.

•In-force rate actions. We estimate that the cumulative economic benefit of approved rate increases and benefit reductions in our long-term care insurance multi-year in-force rate action plan from 2012 through the firstsecond quarter of 2026 was approximately $34.5$34.8 billion, on a net present value basis.

•Risk-based capital ratio. As of MarchJune 31,30, 2026, the consolidated risk-based capital ratio on a company action level basis of our legacy insurance subsidiaries was approximately 289%,286%, down from 300% as of December 31, 2025. The decrease was primarily driven by a statutory loss and higher required capital on long-term care insurance claims in the current year.

•Holding company liquidity. Genworth Holdings had $166$215 million of unrestricted cash and cash equivalents as of MarchJune 31,30, 2026, which included approximately $50$81 million of cash held for future obligations, including advance cash payments from our subsidiaries.

•Capital returns from Enact Holdings. Genworth Holdings received $99$103 million of capital returns from Enact Holdings during the firstsecond quarter of 2026.

•Share repurchases. Genworth Financial executed $66$62 million of share repurchases, before excise taxes and other associated costs, during the firstsecond quarter of 2026.

DuringThrough the firstsecond quarter of 2026, the U.S. economy continued to be subject to significant volatility and uncertainty, largely related to geopolitical tensions, including the Iran conflict, changing economic policies and continued inflationary pressure. The ancillary effects of these factors on the domestic and global economies could materially impact the U.S. housing market and Enact’s business.

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index inflation was 3.5% year-over-year in June 2026 compared to 3.3% year-over-year in March 2026 compared to 2.7% year-over-year in December 2025,2026, while the unemployment rate fell slightly to 4.2% in June 2026 from 4.3% in March 2026 from 4.4% in December 2025.2026.

U.S. mortgage rates wereremained especiallyelevated volatile duringinto the firstsecond quarter of 2026. Lower rates earlier in the quarter drove higher refinance volume in the market, while the mortgage origination market remained relatively slow, particularly as rates rose later in the quarter. Over the past few years, housing affordability has deteriorated as elevated mortgage rates and home price appreciation have outpaced median family income, according to the National Association of Realtors Housing Affordability Index. Despite slowing of home price growth nationally in 2026, according to the Federal Housing Finance Agency (“FHFA”) Monthly Purchase-Only House Price Index (seasonally adjusted), affordability remains challenged.

In July 2025, the FHFA announced that it willwould implement the acceptance of VantageScore 4.0 for mortgages delivered to Fannie Mae and Freddie Mac. TheEnact GSEsbegan haveaccepting sinceVantageScore released4.0 preliminaryon implementationmortgages details and timelines, butduring the fullsecond impactquarter of this2026, initiativethough on Enact’s business, processes and financial resultsvolume remains uncertain.immaterial to date.

New insurance written of $12.8$15.2 billion in the firstsecond quarter of 2026 increased 30%15% compared to the firstsecond quarter of 2025 primarily driven by elevatedlarger estimated purchase and refinance mortgage refinanceinsurance volumemarkets in the current year. Changes in new insurance written are primarily impacted by the size of the mortgage insurance market and Enact’s market share. Enact’s primary persistency rate ofwas 80% and 82% during the firstsecond quarter of 2026 decreased from 84% in the first quarter of 2025 largely due to lapse driven by mortgage rate volatility and higher2025, refinance activity in the first quarter of 2026.respectively.

Net earned premiums decreased modestly in the firstsecond quarter of 2026 comparedwere toconsistent with the firstsecond quarter of 2025 primarilyas drivenslightly bylower average premium rates and higher ceded premiums and lapse-driven premium rate decline, largelywere offset by insurance in-force and assumed premium growth.

Enact’s loss ratio for the three months ended MarchJune 31,30, 2026 and 2025 was 15%14% and 12%,10%, respectively. Both periods were impacted by favorable reserve development. Enact released reserves of $39$37 million during the firstsecond quarter of 2026 primarily driven by favorable cure performance and loss mitigation activities, compared to a reserve release of $47$48 million in the firstsecond quarter of 2025 primarily driven by favorable cure performance on prior year delinquencies.2025.

New primary delinquencies in the firstsecond quarter of 2026 increased compared to the firstsecond quarter of 2025 primarily due to the normal loss development pattern on newer books of business. New primary delinquencies of 13,55912,299 contributed $76$68 million of loss expense in the firstsecond quarter of 2026, while Enact incurred $75$69 million of loss expense from 12,23711,567 new primary delinquencies in the firstsecond quarter of 2025. In determining the loss expense estimate, considerations were given to recent cure and claim experience and the prevailing and prospective economic conditions. Loss expense on new delinquencies in the second quarter of 2026 reflected a reduction in expected claim rates made in late 2025 resulting from sustained favorable cure performance and Enact’s market expectations.

As of MarchJune 31,30, 2026, Enact Mortgage Insurance Corporation’s (“EMICO”) estimated risk-to-capital ratio under North Carolina law and enforced by the North Carolina Department of Insurance (“NCDOI”), EMICO’s domestic insurance regulator, was 10.09.9:1, compared with risk-to-capital ratios of 10.1:1 and 10.510.3:1 as of December 31, 2025 and MarchJune 31,30, 2025, respectively. EMICO’s risk-to-capital ratio remains below the NCDOI’s maximum risk-to-capital ratio of 25:1. North Carolina’s calculation of risk-to-capital excludes the risk in-force for delinquent loans given the established loss reserves against all delinquencies. EMICO’s ongoing risk-to-capital ratio will depend principally on the magnitude of future losses incurred by EMICO, the effectiveness of ongoing loss mitigation activities, new business volume and profitability, the impact of quota share reinsurance, the amount of policy lapses and the amount of additional capital that is generated or distributed by the business.

Under PMIERs, Enact is subject to operational and financial requirements that private mortgage insurers must meet in order to remain eligible to insure loans that are purchased by the GSEs. As of MarchJune 31,30, 2026, Enact had estimated available assets of $5,002 million against $3,108 million net required assets under PMIERs compared to available assets of $5,016 million against $3,097 million net required assets under PMIERs compared to available assets of $5,015 million against $3,096 million net required assets as of DecemberMarch 31, 2025.2026. The sufficiency ratio as of MarchJune 31,30, 2026 andwas December161% 31,or 2025$1,894 wasmillion above the PMIERs requirements, compared to 162% or $1,919 million aboveas theof PMIERsMarch requirements.31, 2026. Enact’s PMIERs required assets benefited from a reinsurance credit of $1,944$1,931 million and $1,932$1,944 million as of MarchJune 31,30, 2026 and DecemberMarch 31, 2025,2026, respectively, related to third-party reinsurance.

During the first quarter of 2026, EMICO paid a dividend to Enact Holdings that supports Enact Holdings’ ability to return capital to shareholders, and Enact Holdings completed the repurchase of shares under the $350 million share repurchase authorization that it had announced on April 30, 2025. On February 3, 2026, Enact Holdings announced the authorization of a new share repurchase program under which it may repurchase up to $500 million of its common stock. Genworth Holdings entered into an agreement with Enact Holdings to participate in the share repurchase program in order to maintain its ownership interest in Enact Holdings. As the majority shareholder, Genworth Holdings received $99$103 million of capital returns from Enact Holdings during the firstsecond quarter of 2026, comprised of $75$76 million of share repurchases and $24$27 million of quarterly dividends. On May 5, 2026, Enact Holdings announced an increase of its quarterly dividend from $0.21 to $0.24 per share, payable in June 2026.

(1)Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million for both the three months ended MarchJune 31, 2026 and30, 2025.

Adjusted operating income increased primarily due to higher net investment income,income and lower operating expenses, partially offset by a lower reserve release in the current year.

Premiums decreasedwere modestlyconsistent mainlyas drivenslightly bylower average premium rates and higher ceded premiums and lapse-driven premium rate decline, largelywere offset by insurance in-force and assumed premium growth in the current year.

Benefits and other changes in policy reserves in both years were impacted by favorable reserve development inrelated bothto prior years and increased primarily driven by a lower reserve release in the current year. Enact released reserves of $39$37 million during the firstsecond quarter of 2026 primarily driven by favorable cure performance and loss mitigation activities, compared to a reserve release of $47$48 million in the firstsecond quarter of 2025 primarily driven by favorable cure performance on prior year delinquencies.2025.

Provision (benefit) for income taxes. The effective tax rate was 21.4%20.5% and 21.6%21.8% for the three months ended MarchJune 31,30, 2026 and 2025, respectively, consistent with the U.S. corporate federal income tax rate.