GENWORTH FINANCIAL INC (GNW)

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included herein and with our 2025 Annual Report on Form 10-K. Unless the context otherwise requires, references to “Genworth,” the “Company,” “we” or “our” herein are to Genworth Financial, Inc. on a consolidated basis. References to “Genworth Financial” refer solely to Genworth Financial, Inc., and not to any of its consolidated subsidiaries.

Cautionary note regarding forward-looking statements

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.

Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, inflation, business, competitive, market, regulatory and other factors and risks, including but not limited to, the following:

•the inability to successfully launch new lines of business, including long-term care insurance and other products and services we are pursuing with CareScout;

•our failure to maintain the self-sustainability of Genworth Life Insurance Company and its subsidiaries, collectively referred to as “Closed Block” or our “legacy insurance subsidiaries,” including as a result of the inability to achieve desired levels of in-force management actions and/or the timing of future premium rate increases and associated benefit reductions taking longer to achieve than originally assumed; other regulatory actions negatively impacting our life insurance businesses;

•inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results (including as a result of any changes in connection with quarterly, annual or other reviews);

•the impact on holding company liquidity caused by an inability to receive dividends or any other returns of capital from Enact Holdings, and limited sources of capital and financing and the need to seek additional capital on unfavorable terms;

•the impact on any potential recovery in the AXA and Santander litigation resulting from a successful appeal, significant delays or any other adverse development in the litigation;

•adverse changes to the structure or requirements of Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”) or the U.S. mortgage insurance market; an increase in the number of loans insured through federal government mortgage insurance programs, including those offered by the Federal Housing Administration (“FHA”); the inability of Enact Holdings and/or its U.S. mortgage insurance subsidiaries to continue to meet the requirements mandated by the private mortgage insurer eligibility requirements (“PMIERs”) (or any adverse changes thereto), the inability to meet minimum statutory capital requirements of applicable regulators or the mortgage insurer eligibility requirements of Fannie Mae or Freddie Mac;

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•changes in economic, market and political conditions, labor shortages and fluctuating interest rates; unanticipated financial events, which could lead to market-wide liquidity problems and other significant market disruption resulting in losses, defaults or credit rating downgrades of other financial institutions; deterioration in economic conditions, a recession or a decline in home prices, all of which could be driven by many potential factors, including a U.S. federal government shutdown; an increase in the cost of care impacting our long-term care insurance products included in our Closed Block segment; changes in international trade policy, including the potential impact of new or increased tariffs, retaliatory policies or actions from other countries, and trade wars or other events that lead to political and economic instability; changes in government or monetary policies; changes within regulatory agencies; changes in immigration policy; and fluctuations in international securities markets;

•downgrades in financial strength and credit ratings and potential adverse impacts to liquidity; counterparty credit risks; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of invested assets, including private equity and private credit;

•changes in tax rates or tax laws, or changes in accounting and reporting standards;

•litigation and regulatory investigations or other actions, including commercial and contractual disputes with counterparties;

•the inability to retain, attract and motivate qualified employees or senior management;

•changes in the composition of Enact Holdings’ business or undue concentration by customer or geographic region;

•the impact from deficiencies in our disclosure controls and procedures or internal control over financial reporting;

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

•the inability to effectively manage technology systems (including artificial intelligence), cyber incidents or other failures, disruptions or security breaches of us or our third-party vendors, as well as unknown risks and uncertainties associated with artificial intelligence;

•the inability of third-party vendors to meet their obligations to us;

•the lack of availability, affordability or adequacy of reinsurance to protect us against losses;

•a decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations;

•unanticipated claims resulting from Enact Holdings’ delegated underwriting and loss mitigation programs;

•the impact of medical advances such as genetic research and diagnostic imaging, emerging new technology, including artificial intelligence and related legislation; and

•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 on February 27, 2026.

We provide additional information regarding these risks and uncertainties in our Annual Report on Form 10-K. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Accordingly, for the foregoing reasons, we caution the reader against relying on any forward-looking statements. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities laws.

Overview

Genworth Financial offers mortgage insurance products through its principal mortgage insurance subsidiaries. Genworth Financial also has start-up businesses whereby it offers fee-based services, advice, consulting and other aging care services through CareScout Services and long-term care insurance products through CareScout Insurance. Genworth Financial’s legacy insurance subsidiaries no longer offer or sell long-term care insurance, life insurance or annuity products. However, these subsidiaries continue to service and manage their in-force blocks of business and may still issue a limited number of certificates under existing group long-term care insurance policies.

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We report our business results through two segments: Enact, comprised primarily of mortgage insurance products, and Closed Block, comprised of long-term care insurance, life insurance and annuity products previously sold through our legacy insurance subsidiaries. In addition to our two reportable segments, we also have Corporate and Other, which includes debt financing expenses that are incurred at the Genworth Holdings, Inc. (“Genworth Holdings”) level, unallocated corporate income and expenses, and eliminations of inter-segment transactions. Corporate and Other also includes the results of other businesses that are not individually reportable, such as CareScout Services, CareScout Insurance and certain international businesses.

Genworth Financial is the parent company of Enact Holdings, a leading provider of private mortgage insurance in the United States through its mortgage insurance subsidiaries. Enact Holdings is a public company traded on the Nasdaq Global Select Market exchange under the ticker symbol “ACT.” Genworth Financial maintains control of Enact Holdings through an indirect majority voting interest and accordingly, Enact Holdings remains a consolidated subsidiary of Genworth Financial. Enact Holdings and its mortgage insurance subsidiaries comprise, and can therefore generally be viewed as, our Enact segment, or commonly referred to as “Enact.”

Strategic Update

Create value

We continue to create shareholder value through Enact’s growing market value and capital returns. Enact Holdings provided $99 million of capital returns to Genworth Holdings in the first quarter of 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 April 30, 2026, we have repurchased $875 million worth of shares of Genworth Financial’s common stock. For additional information on our share repurchase program, see “—Liqui

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and related notes included in “Item 8—Financial Statements and Supplementary Data.”

Item 7 of our Annual Report on Form 10-K generally discusses year-to-year comparisons between the years ended December 31, 2025 and 2024. In addition, this Form 10-K also includes discussions of information related to 2023 and year-to-year comparisons between 2024 and 2023 for our Closed Block segment, which has been recast to reflect the change in our reportable segments. All other detailed comparative discussions between 2024 and 2023 that were not

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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, 2024.

Overview

Our business

Genworth Financial offers mortgage insurance products through its majority-owned subsidiary, Enact Holdings, a leading provider of private mortgage insurance in the United States through its mortgage insurance subsidiaries. Genworth Financial also has start-up businesses whereby it offers fee-based services, advice, consulting and other aging-care services through CareScout Services and long-term care insurance products through CareScout Insurance. Genworth Financial’s legacy insurance subsidiaries no longer offer or sell long-term care insurance, life insurance or annuity products. However, these subsidiaries continue to service and manage their in-force blocks of business and may still issue a limited number of certificates under existing group long-term care insurance policies.

We report our business results through two segments: Enact and Closed Block. In addition to our two reportable segments, we disclose other business activities and operating results in Corporate and Other, including our start-up businesses, CareScout Services and CareScout Insurance.

Our financial information

The financial information in this Annual Report on Form 10-K has been derived from our consolidated financial statements.

Revenues and expenses

Our revenues consist primarily of the following:

•Premiums. Premiums consist primarily of premiums earned on insurance products for mortgage, long-term care and term life insurance.

•Net investment income. Net investment income represents the income earned on our investments. For discussion of the change in net investment income, see the comparison for this line item under “—Investments and Derivative Instruments.”

•Net investment gains (losses). Net investment gains (losses) consist primarily of realized gains and losses from the sale of our investments, credit losses, and unrealized gains and losses on equity securities, limited partnership investments and derivative instruments. For discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.”

•Policy fees and other income. Policy fees and other income consist primarily of fees assessed against policyholder and contractholder account values, surrender charges, cost of insurance assessed on universal and term universal life insurance policies, advisory and administration service fees assessed on investment contractholder account values, broker-dealer commission revenues, fee revenue from contract underwriting services and other fees.

Our expenses consist primarily of the following:

•Benefits and other changes in policy reserves. Benefits and other changes in policy reserves consist primarily of benefits paid, interest accretion expense and other reserve activity related to future policy benefits for long-term care insurance, life insurance, and fixed and variable annuities, and claim costs incurred related to mortgage insurance products.

•Liability remeasurement (gains) losses. Liability remeasurement (gains) losses represent changes to the net premium ratio for actual variances from expected experience and updates to cash flow assumptions used to measure long-duration traditional and limited-payment insurance contracts.

•Changes in fair value of market risk benefits and associated hedges. 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.

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•Interest credited. Interest credited represents interest credited on behalf of policyholder and contractholder general account balances.

•Acquisition and operating expenses, net of deferrals. Acquisition and operating expenses, net of deferrals, represent costs and expenses related to the acquisition and ongoing maintenance of insurance and investment contracts, including commissions, policy issuance expenses and other underwriting and general operating costs. These costs and expenses are net of amounts that are capitalized and deferred, which are costs and expenses that are related directly to the successful acquisition of new or renewal insurance policies and investment contracts, such as first-year commissions in excess of ultimate renewal commissions and other policy issuance expenses. We allocate certain corporate expenses to each of our segments using various methodologies.

•Amortization of deferred acquisition costs and intangibles. Amortization of deferred acquisition costs (“DAC”) and intangibles consists primarily of the amortization of capitalized acquisition costs, present value of future profits and capitalized software.

•Interest expense. Interest expense primarily represents interest incurred on borrowings of Genworth Holdings and Enact Holdings.

•Provision (benefit) for income taxes. We allocate tax to our businesses at the U.S. corporate federal income tax rate of 21%. Each segment is then adjusted to reflect the unique tax attributes of that segment, such as permanent differences between U.S. GAAP and tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other.

The effective tax rates disclosed herein are calculated using whole numbers. As a result, the percentages shown may differ from an effective tax rate calculated using rounded numbers.

•Net income (loss) attributable to noncontrolling interests. Net income (loss) attributable to noncontrolling interests represents third-party ownership interests in income (loss) of Enact Holdings, a consolidated subsidiary of Genworth Financial.

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Consolidated Results of Operations

The following table sets forth the consolidated results of operations for the periods indicated:

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(1)We define “NM” as not meaningful for increases or decreases greater than 200%.

Unless otherwise stated, all references to net income (loss), net income (loss) per share, adjusted operating income (loss) and adjusted operating income (loss) per share found in “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read as net income (loss) available to Genworth Financial, Inc.’s common stockholders, net income (loss) available to Genworth Financial, Inc.’s common stockholders per share, adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share, respectively.

Use of non-GAAP measures

Reconciliation of net income (loss) to adjusted operating income (loss)

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

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overall operating performance, as it minimizes the impact of macroeconomic volatility. Our legacy insurance subsidiaries, which comprise our Closed Block segment, are managed on a standalone basis; therefore, we do not allocate capital to our Closed Block segment.

We define adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) attributable to noncontrolling interests, 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 sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items. 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 sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in our opinion, they are not indicative of overall operating performance.

While some of these 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), are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Adjusted operating income (loss) is not a substitute for net income (loss) determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income (loss) may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) to adjusted operating income (loss) assume a 21% current tax rate, 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.

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

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(1)For the years ended December 31, 2025, 2024 and 2023, net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $3 million, $4 million and $2 million, 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 $(8) million, $(30) million and $(10) million for the years ended December 31, 2025, 2024 and 2023, respectively.

(3)(Gains) losses on early extinguishment of debt were net of the portion attributable to noncontrolling interests of $2 million for the year ended December 31, 2024.

(4)The year ended December 31, 2025 included a $24 million tax benefit related to a release of a portion of the valuation allowance on certain deferred tax assets.

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Earnings (loss) per share

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

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(1)We define “NM” as not meaningful for increases or decreases greater than 200%.

Diluted weighted-average common shares outstanding reflect the effects of potentially dilutive securities including performance stock units, restricted stock units and other equity-based awards.

The following table presents a summary of adjusted operating income (loss) for our segments and Corporate and Other for the periods indicated:

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(1)We define “NM” as not meaningful for increases or decreases greater than 200%.

Executive Summary of Consolidated Financial Results

Below is an executive summary of our consolidated financial results for the periods indicated. Amounts within this “Executive Summary of Consolidated Financial Results” and in our discussion of adjusted operating income (loss) within

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“—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%.

For a discussion of selected financial information and detailed descriptions of operating performance measures see “—Results of Operations and Selected Financial and Operating Performance Measures by Segment.”

2025 compared to 2024

•Net income in 2025 and 2024 was $223 million and $299 million, respectively, and adjusted operating income was $144 million and $273 million, respectively.

•Enact segment

•Adjusted operating income decreased primarily due to lower reserve releases and higher new delinquencies, partially offset by higher net investment income and lower operating expenses in 2025.

•Closed Block segment

•The adjusted operating loss in our long-term care insurance products increased primarily driven by unfavorable cash flow assumption updates in 2025 compared to favorable updates in 2024, net insurance recoveries of $22 million in 2024 that did not recur and aging of the in-force block. These adverse developments were partially offset by higher limited partnership income and a $21 million gain related to a third-party reinsurance recapture in 2025.

•The adjusted operating loss in our life insurance products decreased largely due to continued block runoff.

•Adjusted operating income in our annuity products increased primarily from favorable assumption updates of $20 million in 2025 largely related to mortality assumptions compared to unfavorable updates of $14 million in 2024 largely related to lapse assumptions, partially offset by lower spread income in 2025 driven mostly by block runoff.

•Corporate and Other

•The adjusted operating loss decreased primarily from a $17 million tax benefit related to a release of a portion of the valuation allowance on certain deferred tax assets, mostly offset by higher expenses related to CareScout growth initiatives in 2025.

2024 compared to 2023

•Net income in 2024 and 2023 was $299 million and $76 million, respectively, and adjusted operating income was $273 million and $41 million, respectively.

•Enact segment

•Adjusted operating income increased primarily attributable to higher net investment income and premiums, partially offset by higher new delinquencies in 2024.

•Closed Block segment

•The adjusted operating loss in our long-term care insurance products decreased primarily driven by lower liability remeasurement losses, net insurance recoveries and higher income from limited partnerships, partially offset by lower renewal premiums in 2024.

•The adjusted operating loss in our life insurance products decreased primarily from liability remeasurement gains in 2024 compared to losses in 2023, partially offset by lower premiums and a less favorable change in reserves in 2024 in our term life insurance products related to block runoff.

•Adjusted operating income in our annuity products decreased primarily from unfavorable assumption updates of $14 million in 2024 largely related to lapse assumptions compared to favorable assumption updates in 2023 and lower net spreads primarily related to block runoff.

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•Corporate and Other

•The adjusted operating loss increased primarily from higher expenses related to CareScout growth initiatives, partially offset by a higher benefit for income taxes in 2024.

Significant Developments and Key Highlights

Enact segment

•Mortgage insurance portfolio. Enact’s primary persistency rate remained slightly elevated at 82% during 2025, though down from 83% during 2024. Elevated persistency and an increase in new insurance written led to primary insurance in-force growth of $4.3 billion in 2025.

•Loss performance. Enact recorded pre-tax net reserve releases of $200 million in 2025 primarily related to strong cure performance and loss mitigation activities, compared to pre-tax reserve releases of $252 million in 2024.

•PMIERs compliance. Enact’s PMIERs sufficiency ratio was 162% or $1,919 million above the PMIERs requirements as of December 31, 2025.

•Liquidity and financial flexibility. On September 30, 2025, Enact Holdings entered into a $435 million five-year unsecured revolving credit facility (“2025 Credit Facility”), which replaced the previous $200 million revolving credit facility dated June 30, 2022 (“2022 Credit Facility”). The 2025 Credit Facility remained undrawn as of December 31, 2025.

•New share repurchase program. 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.

Closed Block segment

•Long-term care insurance in-force management actions

•Based on our current updated assumptions, we estimate that the cumulative economic benefit of approved rate increases and benefit reductions from 2012 through 2025 was approximately $34.5 billion, on a net present value basis. This reflects meaningful progress toward our latest estimate of approximately $39.5 billion total net present value included in our multi-year in-force rate action plan, and an estimated $5.0 billion remaining to be achieved, based on our current updated assumptions.

•Annual assumption reviews

•Long-term care insurance. Our long-term care insurance products had an unfavorable pre-tax impact of $47 million from our annual review of cash flow assumptions in the fourth quarter of 2025. Unfavorable benefit utilization and healthy life assumption updates were largely offset by favorable assumption updates reflecting in-force rate action approval experience and benefit reductions as well as favorable claim termination assumption updates. See “—Critical Accounting Estimates—Liability for future policy benefits” for additional information on the impact of changes in our long-term care insurance cash flow assumptions.

•Life insurance. As part of our annual review of cash flow assumptions in the fourth quarter of 2025, our universal and term universal life insurance products had a favorable pre-tax impact of $15 million reflecting updates to interest rate assumptions given the recent rate environment. See “—Critical Accounting Estimates—Policyholder account balances—additional insurance liabilities” for additional information on the impact of changes in our life insurance cash flow assumptions.

•Annuities. As part of our annual review of cash flow assumptions in the fourth quarter of 2025, our annuity products had a favorable pre-tax impact of $25 million to adjusted operating income primarily from fixed annuity mortality assumption updates.

•Capital of legacy insurance subsidiaries

•As of December 31, 2025, the consolidated RBC ratio on a company action level basis of our legacy insurance subsidiaries was approximately 300%, down from 306% as of December 31, 2024

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primarily due to higher required capital as our limited partnership portfolio grows, partially offset by statutory earnings in 2025.

Capital and liquidity

•Holding company liquidity. Genworth Holdings had $234 million of unrestricted cash and cash equivalents as of December 31, 2025, which included approximately $127 million of cash held for future obligations, including advance cash payments from our subsidiaries.

•Share repurchases. During 2025, Genworth Financial executed $245 million of share repurchases, before excise taxes and other associated costs. On September 18, 2025, Genworth Financial announced that its Board of Directors had authorized a new share repurchase program under which Genworth Financial may purchase up to $350 million of its outstanding common stock.

•Capital returns. During 2025, Genworth Holdings received $407 million of capital returns from Enact Holdings. Enact Holdings expects to return approximately $500 million of capital to its shareholders in 2026. Based on our approximately 81% ownership, we expect to receive approximately $405 million in capital returns from Enact Holdings for the full year 2026.

Results of Operations and Selected Financial and Operating Performance Measures by Segment

Enact segment

Trends and conditions

Results of our Enact segment are affected primarily by the following factors: competitor actions; unemployment or underemployment levels; other economic and housing market trends, including interest rates, home prices, the number of first-time homebuyers, and mortgage origination volume mix and practices; the size of the overall private mortgage insurance market and the effect of regulatory actions thereon; the levels and aging of mortgage delinquencies; the effect of seasonal variations; the inventory of unsold homes; loan modification and other servicing efforts; and litigation, among other items. References to “Enact” included in “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Enact segment” are, unless the context otherwise requires, to our Enact segment.

Macroeconomic environment

Throughout 2025, the U.S. economy was subject to significant volatility and uncertainty, largely related to changing economic policies, including new and variable tariffs, continued inflationary pressure, the U.S. federal government shutdown, and certain domestic and geopolitical tensions. 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 decreased to 2.7% year-over-year in December 2025 compared to 2.9% year-over-year in December 2024. The unemployment rate increased to 4.4% in December 2025 compared to 4.1% in December 2024.

Purchase originations in the U.S. mortgage origination market remained relatively slow in response to elevated mortgage rates. Over the past few years, housing affordability has deteriorated as elevated mortgage rates and home price appreciation outpaced median family income, according to the National Association of Realtors Housing Affordability Index. Affordability pressures eased slightly toward the end of 2025 as mortgage rates began to decline and national home price growth has slowed, according to the FHFA Monthly Purchase-Only House Price Index (seasonally adjusted).

Regulatory developments

Private mortgage insurance market penetration and overall market size are affected in part by actions that impact housing or housing finance policy taken by the GSEs and the U.S. government, including but not limited to, the FHA and the FHFA. In the past, these actions have included announced changes, or potential changes, to underwriting standards, including changes to the GSEs’ automated underwriting systems, FHA pricing, GSE guaranty fees, loan limits and alternative products.

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In July 2025, the FHFA announced that it will implement the acceptance of VantageScore 4.0 for mortgages delivered to Fannie Mae and Freddie Mac. The GSEs have not yet released implementation details and timelines, and the full impact of this initiative on Enact’s business, processes and financial results remains uncertain.

Competitive environment

The U.S. private mortgage insurance industry is highly competitive. Enact Holdings’ market share is influenced by the execution of its go to market strategy, including but not limited to, pricing competitiveness relative to its peers and its selective participation in forward commitment transactions. Enact continues to manage the quality of new business through pricing and its underwriting guidelines, which are modified from time to time when circumstances warrant. The market and underwriting conditions, including the mortgage insurance pricing environment, are within Enact’s risk-adjusted return appetite, enabling it to write new business at returns it views as attractive.

Mortgage insurance portfolio

New insurance written of $51.5 billion in 2025 increased 1% compared to 2024. 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 decreased to 82% during 2025 compared to 83% during 2024. Persistency remained slightly elevated due to high interest rates but decreased compared to 2024 due to rate volatility throughout 2025. Elevated persistency and modest new insurance written growth led to an increase in primary insurance in-force of $4.3 billion, or 2%, since December 31, 2024.

Net earned premiums in 2025 were consistent with 2024 as higher average insurance in-force and higher assumed premiums were offset by higher ceded premiums and slightly lower average premium rates.

Loss experience

Enact’s loss ratio was 11% for the year ended December 31, 2025 compared to 4% for the year ended December 31, 2024. Both periods were impacted by net favorable reserve adjustments due to strong cure performance and loss mitigation activities. Enact released reserves of $200 million in 2025, the majority of which were related to prior year delinquencies. A portion of the releases also related to lower expected claim rates on 2025 delinquencies reflecting sustained favorable cure performance and current market expectations. This compares to reserve releases of $252 million in 2024 primarily on delinquencies from prior years.

New primary delinquencies in 2025 increased slightly compared to 2024 primarily due to the normal loss development pattern on newer books of business. New primary delinquencies of 50,481 contributed $299 million of loss expense in 2025, while Enact incurred $287 million of loss expense from 48,537 new primary delinquencies in 2024. In determining the loss expense estimate, considerations were given to recent cure and claim experience and the prevailing and prospective economic conditions.

The severity of loss on loans that go to claim may be negatively impacted by extended forbearance and foreclosure timelines, the associated elevated expenses and the higher loan amount of recent new delinquencies. These negative influences on loss severity could be mitigated in part by embedded home price appreciation. The majority of Enact’s mortgage insurance policies limit the number of months of unpaid interest and associated expenses that are included in the mortgage insurance claim amount to a maximum of 36 months.

Reinsurance transactions

During 2025, Enact executed excess of loss reinsurance transactions that provide approximately $225 million of reinsurance coverage on a portion of new insurance written for the 2025 book year, and $260 million and $170 million of coverage on a portion of expected new insurance written for the 2026 and 2027 book years, respectively. Enact also entered into a quota share reinsurance agreement with a panel of reinsurers under which it will cede approximately 34% of a portion of its expected new insurance written for the 2027 book year. See note 7 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional details on Enact’s reinsurance transactions. Enact may execute future credit risk transfer transactions to maintain a prudent level of financial flexibility in excess of the PMIERs capital requirements in response to potential changes in performance and PMIERs requirements over time.

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Capital requirements

As of December 31, 2025, EMICO’s risk-to-capital ratio under the current regulatory framework as established under North Carolina law and enforced by the NCDOI, EMICO’s domestic insurance regulator, was approximately 10.1:1, compared with a risk-to-capital ratio of 10.5:1 as of December 31, 2024. 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 December 31, 2025, Enact had estimated available assets of $5,015 million against $3,096 million net required assets under PMIERs, compared to available assets of $5,095 million against $3,043 million net required assets as of December 31, 2024. The sufficiency ratio as of December 31, 2025 was 162% or $1,919 million above the PMIERs requirements, compared to 167% or $2,052 million above the PMIERs requirements as of December 31, 2024. Enact’s PMIERs required assets benefited from a reinsurance credit of $1,932 million and $1,885 million as of December 31, 2025 and 2024, respectively, related to third-party reinsurance transactions. Enact’s PMIERs required assets as of December 31, 2024 benefited $28 million from the application of a 0.30 multiplier applied to the risk-based required asset amount factor for certain non-performing loans as defined under PMIERs. Per guidance released by the GSEs, use of the multiplier was discontinued effective March 31, 2025.

On August 21, 2024, the GSEs and the FHFA released updated PMIERs requirements phasing in a revision to the available assets standards between March 31, 2025 and September 30, 2026. Enact expects to hold capital sufficiency well in excess of these requirements and does not expect the impact of these updates to be material to its sufficiency. For additional details, see “Item 1—Regulation—Enact—Mortgage Insurance Regulation—Other U.S. regulation and agency qualification requirements.”

Capital returns

EMICO paid dividends to Enact Holdings during each quarter of 2025 that support Enact Holdings’ ability to return capital to shareholders. On May 1, 2024, Enact Holdings announced the approval by its board of directors of a share repurchase program under which Enact Holdings could repurchase up to $250 million of its common stock. Enact Holdings completed the repurchase of shares under this authorization in the second quarter of 2025. On April 30, 2025, Enact Holdings announced the authorization of a new share repurchase program that allows for the repurchase of up to an additional $350 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. In addition to its share repurchase program, Enact Holdings pays a quarterly dividend. As the majority shareholder, Genworth Holdings received $407 million of capital returns from Enact Holdings during 2025, comprised of $309 million of share repurchases and $98 million of quarterly dividends.

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 new share repurchase program in order to maintain its ownership interest in Enact Holdings.

Returning capital to shareholders, balanced with growth and risk management priorities, remains a key commitment for Enact Holdings as it looks to enhance shareholder value through time. Future return of capital will be shaped by Enact Holdings’ capital prioritization framework, which sets the following priorities: supporting its existing policyholders, growing its mortgage insurance business, funding attractive new business opportunities and returning capital to shareholders. Enact Holdings’ total return of capital will also be based on its view of the prevailing and prospective macroeconomic conditions, regulatory landscape and business performance.

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Segment results of operations

The following table sets forth the results of operations relating to our Enact segment for the periods indicated:

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(1)For the years ended December 31, 2025, 2024 and 2023, net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $3 million, $4 million and $2 million, respectively.

(2)For the year ended December 31, 2024, (gains) losses on the early extinguishment of debt were net of the portion attributable to noncontrolling interests of $2 million.

2025 compared to 2024

Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders

Adjusted operating income decreased primarily due to lower reserve releases and higher new delinquencies, partially offset by higher net investment income and lower operating expenses in 2025.

Revenues

Premiums were flat as insurance-in force growth and higher assumed premiums were offset by higher ceded premiums and slightly lower average premium rates in 2025.

Net investment income increased primarily from higher investment yields and higher average invested assets in 2025.

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For a discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.”

Benefits and expenses

Benefits and other changes in policy reserves increased largely from lower reserve releases and higher new delinquencies in 2025. Both periods were impacted by favorable reserve adjustments due to strong cure performance and loss mitigation activities. Enact released reserves of $200 million in 2025, the majority of which were related to prior year delinquencies. A portion of the releases also related to lower expected claim rates on 2025 delinquencies reflecting sustained favorable cure performance and current market expectations. During 2024, Enact recorded reserve releases of $252 million.

Acquisition and operating expenses, net of deferrals, decreased primarily due to an $11 million loss in 2024 on the early redemption of Enact Holdings’ 6.50% senior notes due in August 2025 (“2025 Notes”) that did not recur. The decrease was also driven by lower restructuring expenses and operating costs in 2025.

Provision (benefit) for income taxes. The effective tax rate was 21.5% and 21.6% for the years ended December 31, 2025 and 2024, respectively, consistent with the U.S. corporate federal income tax rate.

Enact selected operating performance measures

Management regularly monitors and reports insurance in-force and risk in-force for our Enact segment. Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans insured by our U.S. mortgage insurance subsidiaries. Risk in-force is based on the coverage percentage applied to the estimated current outstanding loan balance. These metrics are presented on a direct basis and exclude reinsurance. We consider insurance in-force and risk in-force to be measures of Enact’s operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.

Management also regularly monitors and reports new insurance written for our Enact segment as a measure of volume of new business generated in a period. We consider new insurance written to be a measure of Enact’s operating performance because it represents a measure of new sales of mortgage insurance policies during a specified period, rather than a measure of revenues or profitability during that period.

The following table sets forth selected operating performance measures regarding Enact as of and for the dates indicated:

2025 compared to 2024

Primary insurance in-force and risk in-force

Primary insurance in-force increased mainly from new insurance written and elevated persistency, partially offset by lapses and cancellations. The primary persistency rate was 82% and 83% for the years ended December 31, 2025 and 2024, respectively. Total risk in-force increased primarily as a result of higher primary insurance in-force.

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New insurance written

Changes in new insurance written are primarily impacted by the size of the mortgage insurance market and Enact’s market share.

Loss and expense ratios

Management regularly monitors and reports a loss ratio and an expense ratio for our Enact segment. We consider the loss ratio, which is the ratio of benefits and other changes in policy reserves to net earned premiums, to be a measure of underwriting performance. The expense ratio is the ratio of general expenses to net earned premiums. Enact’s general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. We believe these ratios help to enhance the understanding of Enact’s operating performance.

The following table sets forth the loss and expense ratios for Enact for the dates indicated:

The loss ratio increased largely from lower net favorable reserve adjustments and higher new delinquencies in 2025.

The expense ratio decreased primarily due to an $11 million loss in 2024 on the early redemption of Enact Holdings’ 2025 Notes that did not recur, which increased the expense ratio by one percentage point in 2024. The decrease was also driven by lower restructuring expenses and operating costs in 2025.

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Mortgage insurance loan portfolio

The following table sets forth selected financial information regarding Enact’s loan portfolio as of December 31:

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(1)Fair Isaac Company.

(2)Loans with unknown FICO scores are included in the 660-679 category.

The FICO credit score is one indicator of a borrower’s credit quality. Enact continues to underwrite predominantly prime loan new business. Based upon FICO at loan closing, the weighted average FICO score of Enact’s primary insurance in-force was 746 as of December 31, 2025.

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Delinquent loans and claims

Enact’s delinquency management process begins with notification by the loan servicer of a delinquency on an insured loan. “Delinquency” is defined in Enact’s master policies as the borrower’s failure to pay when due an amount equal to the scheduled monthly mortgage payment under the terms of the mortgage. Generally, the master policies require an insured to notify Enact of a delinquency if the borrower fails to make two consecutive monthly mortgage payments prior to the due date of the next mortgage payment. Borrowers default for a variety of reasons, including a reduction of income, unemployment, divorce, illness/death, inability to manage credit, falling home prices and interest rate levels. Borrowers may cure delinquencies by making all of the delinquent loan payments, agreeing to a loan modification or by selling the property in full satisfaction of all amounts due under the mortgage. In most cases, delinquencies that are not cured result in a claim under Enact’s policy.

The following table sets forth the number of loans insured, the number of delinquent loans and the delinquency rate for Enact’s loan portfolio as of December 31:

The delinquency rate as of December 31, 2025 increased compared to December 31, 2024 primarily due to new delinquencies exceeding cures and paid claims.

The following tables set forth primary delinquencies, direct primary case reserves and risk in-force by aged missed payment status in Enact’s loan portfolio as of December 31:

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(1)Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves.

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(1)Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves.

Total reserves as a percentage of risk in-force as of December 31, 2025 was flat compared to December 31, 2024.

Primary insurance delinquency rates differ from region to region in the United States at any one time depending upon economic conditions and cyclical growth patterns. The tables below set forth the dispersion of direct primary case reserves and primary delinquency rates for the 10 largest states and the 10 largest Metropolitan Statistical Areas (“MSA”) or Metro

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Divisions (“MD”) by Enact’s primary risk in-force as of the dates indicated. Delinquency rates are shown by region based upon the location of the underlying property rather than the location of the lender.

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(1)Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves.

(2)Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed.

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(1)Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves.

The number of delinquencies may not correlate directly with the number of claims received because delinquencies may cure. The rate at which delinquencies cure is influenced by borrowers’ financial resources and circumstances and regional economic differences. Whether a delinquency leads to a claim correlates highly with the borrower’s equity at the time of delinquency, as it influences the borrower’s willingness to continue to make payments, and the borrower’s or the insured’s ability to sell the home for an amount sufficient to satisfy all amounts due under the mortgage loan, as well as the borrower’s financial ability to continue making payments. When Enact receives notice of a delinquency, it uses its proprietary model to determine whether a delinquent loan is a candidate for a modification. When the model identifies such a candidate, Enact’s loan workout specialists prioritize cases for loss mitigation based upon the likelihood that the loan will result in a claim. Loss mitigation actions include loan modification, extension of credit to bring a loan current, foreclosure forbearance, pre-foreclosure sale and deed-in-lieu. These loss mitigation efforts often are an effective way to reduce Enact’s claim exposure and ultimate payouts.

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The following table sets forth the dispersion of Enact’s direct primary case reserves, primary insurance in-force and risk in-force by year of policy origination, as well as weighted average mortgage interest rate and delinquency rate as of December 31, 2025:

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(1)Average annual mortgage interest rate weighted by insurance in-force.

(2)Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves.

Loss reserves in policy years 2008 and prior are outsized compared to their representation of risk in-force. The size of these policy years at origination, particularly 2005 through 2008, combined with the significant decline in home prices led to significant losses in policy years prior to 2009. Although uncertainty remains with respect to the ultimate losses Enact will experience on these policy years, they have become a smaller percentage of its total mortgage insurance portfolio. The concentration of loss reserves has shifted to newer book years in line with changes in risk in-force. As of December 31, 2025, Enact’s 2018 and newer policy years represented approximately 96% of its primary risk in-force and 85% of its total direct primary case reserves.

The ratio of the claim paid to the current risk in-force for a loan is referred to as “claim severity.” The current risk in-force is equal to the unpaid principal amount multiplied by the coverage percentage. The main determinants of claim severity are the age of the mortgage loan, the value of the underlying property, accrued interest on the loan, expenses advanced by the insured and foreclosure expenses. These amounts depend partly upon the time required to complete foreclosure, which varies depending upon state laws. Pre-foreclosure sales, acquisitions and other early workout and claim administration actions help to reduce overall claim severity. Enact’s average primary mortgage insurance claim severity was 96%, 99% and 97% for the years ended December 31, 2025, 2024 and 2023, respectively, and was impacted by low claim volumes and lifetime home price appreciation. The average claim severities do not include the effects of agreements on non-performing loans.

Closed Block segment

We no longer solicit sales of the long-term care insurance, life insurance and annuity products included in our Closed Block segment. However, our legacy insurance subsidiaries continue to service and manage their in-force blocks of business and may still issue a limited number of certificates under existing group long-term care insurance policies.

Trends and conditions

Many factors can affect the results of our long-term care insurance, life insurance and annuity products, as further discussed below. 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. Results of the products in our Closed Block segment depend significantly upon the extent to which our actual future experience is consistent with assumptions and methodologies we have used in calculating our

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reserves. We will continue to monitor our experience and assumptions closely and make changes to our assumptions and methodologies, as appropriate, for these products. Even small changes in assumptions or small deviations of actual experience from assumptions could have, and in the past have had, material impacts on our reserve levels, results of operations and financial condition.

For a discussion of potential impacts of assumption updates and actual variances from expected experience on our results of operations, see “Item 1A—Risk Factors—We may be required to increase our reserves as a result of deviations from our estimates and actuarial assumptions or other reasons, which could have a material adverse effect on our business, results of operations and financial condition.”

Results of our life insurance and annuity products and the financial condition of our long-term care insurance products are also impacted by interest rates. We remeasure our liability for future policy benefits and the related reinsurance recoverables at the single-A bond rate each quarter. As a result, our reported insurance liabilities are sensitive to movements in interest rates, which will likely result in continued volatility to our reserve balances and equity. For a discussion of the potential impacts and risks associated with changes in interest rates, see “Item 1A—Risk Factors—Interest rates and changes in rates could materially adversely affect our business and profitability.”

Fourth quarter assumption review

We completed the required annual review of our cash flow assumptions for our long-term care insurance, life insurance and annuity products in the fourth quarter of 2025. While our 2025 assumption review considered trends during and following the pandemic years, our updates to long-term assumptions generally exclude or adjust experience data from 2020 to 2022, as we do not have sufficient information around the long-term effects of COVID-19.

In our long-term care insurance products, we had an unfavorable pre-tax impact of $47 million from cash flow assumption updates in the fourth quarter of 2025. Unfavorable benefit utilization and healthy life assumption updates were largely offset by favorable assumption updates reflecting in-force rate action approval experience and benefit reductions as well as favorable claim termination assumption updates. Our benefit utilization assumption updates included near-term experience related to cost of care inflation, and our healthy life assumptions were updated to better align with recent mortality and incidence trends, incorporating post-COVID-19 trends. Our claim termination assumption updates also incorporated post-COVID-19 trends.

In our universal and term universal life insurance products, we had a favorable pre-tax impact of $15 million from cash flow assumption updates reflecting favorable updates to interest rate assumptions given the recent rate environment. Certain of our universal life insurance products with secondary guarantees are subject to additional reserves on a statutory basis using regulatory prescribed assumptions, including mortality improvement and the reinvestment rate. The updates to the prescribed mortality improvement assumption had a favorable impact from a statutory income (loss) perspective.

In our annuity products, we had a favorable pre-tax impact of $25 million to adjusted operating income primarily from mortality assumption updates in our fixed annuity products.

We also completed statutory cash flow testing for our legacy insurance subsidiaries in the fourth quarter of 2025 and concluded that the margin in those companies was positive.

Long-term care insurance

The results of our long-term care insurance products depend upon how our actual experience compares with our valuation assumptions, including but not limited to in-force rate actions, morbidity, mortality and persistency. Estimates for in-force rate actions reflect certain simplifying assumptions that may vary materially from actual results, including but not limited to consistent policyholder behavior over time in addition to a uniform rate of coinsurance and premium taxes. Actual policyholder behavior may differ significantly from these assumptions. Results of our long-term care insurance products are also influenced by our ability to improve investment yields and manage expenses and reinsurance, among other factors. Changes in laws or government programs, including long-term care insurance rate action legislation, regulation and/or practices, also impact our long-term care insurance products either positively or negatively.

Our actual claims experience will emerge over many years, or decades. Average claim reserves for new claims have trended higher over time as the mix of claims continues to evolve, with an increasing number of policies with higher daily benefit amounts and higher inflation factors going on claim. Although new claim counts on certain of our oldest long-term

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care insurance blocks of business have reached their peak claim years and will decrease as the blocks run off, we expect overall claims costs to continue to increase as the approximately 592,000 insured individuals in our two largest blocks, Choice I and Choice II, with average attained ages of 78 and 75, respectively, reach their peak claim years, which are age 85 and over.

Additionally, we have observed an increase in the cost of care in our long-term care insurance products, due in part to elevated inflation. Increases in cost of care have resulted in higher claim payments, which could have a material adverse impact on our liquidity, results of operations and financial condition if the increases persist.

The impacts of assumption updates and actual variances from expected experience will continue to drive volatility in our long-term care insurance results, particularly for our unprofitable capped cohorts. Our profitable uncapped cohorts have had a more modest earnings impact related to assumption updates and actual variances from expected experience, to date, as a portion of the impact is reflected in current period results with the remaining majority of the impact recognized over the life of the cohort. However, we may see increased volatility as the uncapped cohorts continue to age, with more of the impact related to assumption updates and actual variances from expected experience recognized immediately in net income (loss). It is important to note that quarterly variations resulting from assumption updates and actual variances from expected experience are typically expected to be relatively small compared to the overall size of our liability for future policy benefits of $44.1 billion, at the locked-in discount rate, for our long-term care insurance products as of December 31, 2025.

In-force management actions

Given the ongoing challenges in our long-term care insurance products, we continue to pursue initiatives to improve the risk and profitability profile of our business, including premium increases and benefit reductions on our in-force policies. Executing on our multi-year long-term care insurance in-force rate action plan with premium rate increases and associated benefit reductions on our in-force long-term care insurance policies is critical to Closed Block. Although approvals in 2025 were lower than previous years due to past successes in achieving approvals, this does not impact our overall strategy for rate actions. In some cases, we received large approvals that either materially completed the current multi-year rate action plan or resulted in multi-year implementations. For an update on in-force rate actions, refer to the selected operating performance measures below.

In addition, we previously reached three legal settlements regarding alleged disclosure deficiencies in premium increases for certain long-term care insurance policies. These legal settlements covered approximately 70% of our long-term care insurance in-force in Closed Block and accelerated benefit reductions. The legal settlements resulted in an overall net favorable economic impact to our long-term care insurance products as they reduced tail risk on these long-duration liabilities.

While we expect renewal premiums to decline over time as the block runs off, benefit reductions elected by policyholders in connection with our in-force rate actions and legal settlements have accelerated that decline. However, we expect this decline to be partially offset by future approved rate actions.

We also plan to continue to offer existing, and to design and implement additional, reduced benefit options outside of in-force rate actions to enhance sustainability of our legacy insurance subsidiaries and to reduce the risk on certain product features of our long-term care insurance policies.

Life insurance

Results of our life insurance products are impacted primarily by mortality, persistency, investment yields, expenses, reinsurance and statutory reserve requirements, among other factors.

Mortality levels may deviate each period from historical trends; however, we typically experience seasonally unfavorable mortality in the first quarter of each year. Mortality improved slightly during the fourth quarter of 2025 compared to third quarter of 2025 but was in line with the fourth quarter of 2024. We have also experienced unfavorable mortality compared to our then-current and priced-for assumptions in recent years for our universal life insurance block. Reinsurance costs typically increase due to natural aging of the yearly renewable term reinsured blocks. In prior periods, we have received some yearly renewable term reinsurance premium increases from some of our reinsurance partners that reflect unfavorable mortality.

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Annuities

Results of our fixed and variable annuity products are affected primarily by investment performance, interest rate levels, the slope of the interest rate yield curve, net interest spreads, equity market conditions, mortality, persistency, expense and commission levels, surrenders and scheduled maturities.

We monitor and change crediting rates on fixed deferred annuities on a regular basis to maintain spreads and targeted returns, if applicable. However, we have seen and could continue to see declines in our fixed annuity spreads and margins as interest rates change, depending on the severity of the change.

Equity market volatility and interest rate movements have caused, and may continue to cause, fluctuations in the results of our fixed indexed and variable annuity products and can significantly impact our regulatory capital requirements and liquidity. We use hedging strategies as well as liquidity planning and asset-liability management to help mitigate these impacts. In addition, we have used reinsurance to help mitigate volatility in our variable annuity results.

Equity market performance was more favorable in 2025 compared to 2024. Interest rate performance had an unfavorable impact in 2025 compared to a favorable impact in 2024.

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Segment results of operations

The following table sets forth the results of operations relating to our Closed Block segment for the periods indicated:

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(1)We define “NM” as not meaningful for increases or decreases greater than 200%.

(2)For the years ended December 31, 2025, 2024 and 2023, changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(8) million, $(30) million and $(10) million, respectively.

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The following table sets forth adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for the products included in our Closed Block segment for the periods indicated:

2025 compared to 2024

Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders

•The adjusted operating loss in our long-term care insurance products increased primarily driven by unfavorable cash flow assumption updates in 2025 compared to favorable updates in 2024, net insurance recoveries of $22 million in 2024 that did not recur and aging of the in-force block. These adverse developments were partially offset by higher limited partnership income and a $21 million gain related to a third-party reinsurance recapture in 2025.

•The adjusted operating loss in our life insurance products decreased largely due to continued block runoff.

•Adjusted operating income in our annuity products increased primarily from favorable assumption updates of $20 million in 2025 largely related to mortality assumptions compared to unfavorable updates of $14 million in 2024 largely related to lapse assumptions, partially offset by lower spread income in 2025 driven mostly by block runoff.

Revenues

Premiums

•Our long-term care insurance products increased $34 million primarily driven by $97 million of higher premiums in 2025 from newly implemented in-force rate actions, partially offset by lower renewal premiums from prior benefit reduction elections made by policyholders in connection with our in-force rate actions and legal settlements. Policy terminations also drove lower renewal premiums in 2025.

•Our life insurance products decreased $15 million largely due to the continued runoff of our in-force blocks.

Net investment income

•Our long-term care insurance products increased $28 million largely due to $44 million of higher income from limited partnerships, partially offset by lower investment yields in 2025.

•Our life insurance products decreased $52 million primarily from lower policy loan rates in our corporate-owned life insurance products in 2025.

•Our annuity products decreased $35 million primarily attributable to lower average invested assets in 2025 driven mostly by block runoff.

Net investment gains (losses). For a discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.”

Policy fees and other income. The decrease was primarily driven by our life insurance and annuity products principally due to block runoff.

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Benefits and expenses

Benefits and other changes in policy reserves

•Our long-term care insurance products increased $74 million primarily from a higher unfavorable change in reserves due to an increase in net premiums collected and from aging of the in-force block, including higher interest accretion, in 2025.

•Our life insurance products decreased $87 million largely due to continued block runoff.

Liability remeasurement (gains) losses

•Our long-term care insurance products had a liability remeasurement loss of $316 million in 2025 largely due to unfavorable actual variances from expected experience primarily driven by higher claims and lower terminations, partially offset by a $26 million gain related to a third-party recapture of a block of long-term care insurance policies. For additional information on the third-party reinsurance recapture, see note 22 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data.” The liability remeasurement loss also included unfavorable cash flow assumption updates primarily related to benefit utilization and healthy life assumptions, largely offset by favorable assumption updates reflecting in-force rate action approval experience and benefit reductions as well as favorable claim termination assumption updates.

Our long-term care insurance products had a liability remeasurement loss of $172 million in 2024 mainly attributable to adverse actual variances from expected experience principally driven by lower terminations and higher claims. This was partially offset by net favorable cash flow assumption updates largely related to approval amounts and implementation timing of our in-force rate action plan and a favorable update to our short-term incidence assumption for IBNR claims.

See “—Critical Accounting Estimates—Liability for future policy benefits—Long-term care insurance” for a discussion of the fourth quarter annual review of assumptions.

•Our life insurance products had a liability remeasurement loss of $28 million in 2025 primarily driven by unfavorable actual variances from expected experience largely due to unfavorable mortality. This was partially offset by favorable cash flow assumption updates primarily related to interest rate assumptions given the recent rate environment. Our life insurance products had a gain of $12 million in 2024, which included a $58 million model refinement related to certain universal life insurance products with secondary guarantees, partially offset by $28 million of unfavorable updates to our mortality assumptions for universal life insurance contracts and our interest rate assumptions. See “—Critical Accounting Estimates—Policyholder account balances – additional insurance liabilities” for a discussion of the fourth quarter annual review of assumptions.

•The liability remeasurement gain in our annuity products increased $24 million largely due to favorable cash flow assumption updates in 2025 related to fixed annuity mortality assumptions.

Changes in fair value of market risk benefits and associated hedges. The change to a loss in 2025 from a gain in 2024 was primarily attributable to unfavorable interest rate impacts in our annuity products in 2025 compared to favorable impacts in 2024, partially offset by lower derivative losses and more favorable equity market impacts in 2025. We also had favorable interest rate assumption updates in 2025 compared to unfavorable lapse assumption updates in 2024.

Interest credited

•Our life insurance products decreased $54 million primarily driven by lower policy loan rates in our corporate-owned life insurance products in 2025.

•Our annuity products decreased $13 million largely due to block runoff.

Acquisition and operating expenses, net of deferrals. The increase was primarily driven by our long-term care insurance products principally from $28 million of net insurance recoveries in 2024 that did not recur related to previously incurred legal settlement expenses. The increase was also driven by higher operating costs, including higher employee-related expenses, in 2025.

Amortization of deferred acquisition costs and intangibles. The decrease was primarily driven by lower DAC amortization in our life insurance products in 2025 due to block runoff.

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Provision (benefit) for income taxes. The tax benefit in 2025 and 2024 was primarily attributable to the tax benefit on the pre-tax loss, partially offset by tax expense on certain forward starting swap gains that are tax effected at the previously enacted federal income tax rate of 35% as they are amortized into net investment income.

2024 compared to 2023

Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders

•The adjusted operating loss in our long-term care insurance products decreased primarily driven by lower liability remeasurement losses, net insurance recoveries and higher income from limited partnerships, partially offset by lower renewal premiums in 2024.

•The adjusted operating loss in our life insurance products decreased primarily from liability remeasurement gains in 2024 compared to losses in 2023, partially offset by lower premiums and a less favorable change in reserves in 2024 in our term life insurance products related to block runoff.

•Adjusted operating income in our annuity products decreased primarily from unfavorable assumption updates of $14 million in 2024 largely related to lapse assumptions compared to favorable assumption updates in 2023 and lower net spreads primarily related to block runoff.

Revenues

Premiums

•Our long-term care insurance products decreased $153 million primarily driven by lower renewal premiums from benefit reduction elections made by policyholders in connection with our in-force rate actions and legal settlements and from policy terminations in 2024. The decrease was partially offset by $7 million of higher premiums in 2024 from newly implemented in-force rate actions.

•Our life insurance products decreased $28 million largely due to the continued runoff of our in-force blocks.

Net investment income

•Our long-term care insurance products increased $26 million largely due to higher income from limited partnerships in 2024.

•Our life insurance products decreased $38 million largely from lower policy loan rates in our corporate-owned life insurance products in 2024.

•Our annuity products decreased $45 million primarily attributable to lower average invested assets in 2024 driven mostly by block runoff.

Net investment gains (losses). For a discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.”

Benefits and expenses

Benefits and other changes in policy reserves

•Our long-term care insurance products decreased $28 million primarily due to lower net premiums collected resulting from benefit reduction elections made by policyholders in connection with our in-force rate actions and legal settlements and from policy terminations. This was partially offset by aging of the in-force block, including higher interest accretion, and higher loss adjustment expenses in 2024.

•Our life insurance products increased $21 million primarily from a less favorable change in reserves in our term life insurance products in 2024 related to block runoff and a favorable flooring adjustment in 2023 that did not recur. These increases were partially offset by an increase in cost of reinsurance reserves related to a ceded reinsurance transaction in 2023 that did not recur.

•Our annuity products decreased $22 million largely attributable to block runoff and higher reserve releases in 2024.

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Liability remeasurement (gains) losses

•Our long-term care insurance products had a liability remeasurement loss of $172 million in 2024 largely due to adverse actual variances from expected experience primarily driven by lower terminations and higher claims. This was partially offset by net favorable cash flow assumption updates primarily related to approval amounts and implementation timing of our in-force rate action plan and a favorable update to our short-term incidence assumption for IBNR claims.

Our long-term care insurance products had a liability remeasurement loss of $321 million in 2023 largely driven by adverse actual variances from expected experience primarily related to higher claims and unfavorable timing impacts from the second legal settlement. In addition, cash flow assumption updates were unfavorable in 2023 primarily driven by unfavorable updates to our healthy life assumptions to better reflect near-term experience, partially offset by a favorable update to our disabled life mortality assumptions.

•Our life insurance products had a liability remeasurement gain of $12 million in 2024 compared to a $276 million loss in 2023. The liability remeasurement gain in 2024 included a $58 million model refinement related to certain universal life insurance products with secondary guarantees, partially offset by $28 million of unfavorable updates to our mortality assumptions for universal life insurance contracts and our interest rate assumptions.

The liability remeasurement loss in our life insurance products in 2023 was principally driven by unfavorable cash flow assumption updates of $256 million primarily related to our persistency assumptions for certain universal life insurance products with secondary guarantees and unfavorable mortality updates, including more modest mortality improvement. These unfavorable updates were partially offset by net favorable impacts related to a ceded reinsurance transaction.

Changes in fair value of market risk benefits and associated hedges. The gain increased slightly as favorable interest rate impacts were mostly offset by unfavorable lapse assumption updates of $13 million in our annuity products in 2024 compared to favorable assumption updates in 2023. Our variable annuity products also had higher derivative losses in 2024.

Interest credited

•Our life insurance products decreased $37 million primarily driven by lower policy loan rates in our corporate-owned life insurance products in 2024.

•Our annuity products decreased $13 million largely due to block runoff, partially offset by higher crediting rates in 2024.

Acquisition and operating expenses, net of deferrals

•Our long-term care insurance products decreased $29 million principally from $28 million of net insurance recoveries in 2024 related to previously incurred legal settlement expenses, as well as a $13 million accrual for legal settlement costs in 2023 that did not recur. These decreases were partially offset by higher employee-related expenses in 2024.

•Our life insurance products increased $13 million primarily driven by higher operating costs and a $5 million legal settlement accrual in 2024.

•Our annuity products increased $9 million mainly from higher operating costs in 2024.

Amortization of deferred acquisition costs and intangibles. The decrease was largely due to block runoff in our term life insurance products.

Provision (benefit) for income taxes. The tax benefit decreased primarily due to a lower pre-tax loss in 2024. The tax benefit in 2024 and 2023 was partially offset by tax expense on certain forward starting swap gains that are tax effected at the previously enacted federal income tax rate of 35% as they are amortized into net investment income.

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Closed Block selected operating performance measures

Long-term care insurance

Liability remeasurement (gains) losses

We include expectations for benefit reductions related to in-force rate actions in our assumptions for the liability for future policy benefits, which have impacted and will continue to impact our reported U.S. GAAP financial results. In the fourth quarter of 2025, we also included estimates of other benefit reductions outside of in-force rate actions in our assumptions. We update the net premium ratio quarterly for actual variances from expected experience; therefore, forecasted cash flow assumptions will be replaced with actual cash flows each quarter with any difference recorded in net income (loss). As a result, variances between actual experience and our expectations for benefit reductions will be reflected in liability remeasurement (gains) losses in our operating results on a quarterly basis.

The following table sets forth the pre-tax components of the liability remeasurement (gains) losses, net of reinsurance, of our long-term care insurance products for the periods indicated:

_______________________

(1)We define “NM” as not meaningful for increases or decreases greater than 200%.

For additional discussion of liability remeasurement (gains) losses, see the comparison for this line item above.

In-force management actions

As part of our strategy for our long-term care insurance products in our Closed Block segment, we have been implementing, and expect to continue to pursue, significant premium rate increases and associated benefit reductions as well as other reduced benefit options outside of in-force rate actions in order to maintain the self-sustainability of our legacy insurance subsidiaries and reduce the strain on earnings and capital in our Closed Block segment.

Management regularly monitors and reports in-force rate actions, including state filing approvals; impacted in-force premiums; weighted-average percentage rate increases approved; and gross incremental premiums approved for the long-term care insurance products included in our Closed Block segment.

We also estimate the cumulative economic benefit of approved rate actions in our long-term care insurance multi-year in-force rate action plan on a net present value basis, discounted at our investment portfolio yield. This is based on current assumptions and is defined as the net present value of historical and future expected premium increases and benefit reductions as a result of rate increases approved on our long-term care insurance policies. It also includes the net present value of reserve reductions related to prior legal settlements less cash payments made to policyholders who elected certain reduced benefit options in connection with the legal settlements, referred to as settlement payments. We monitor these selected operating performance measures for in-force management actions to track our progress on maintaining the self-sustainability of our legacy insurance subsidiaries. We consider these in-force management action metrics to be measures of financial performance and help to enhance the understanding of the operating performance of our Closed Block segment.

We estimate that the cumulative economic benefit of approved rate increases and benefit reductions from 2012 through 2025 was approximately $34.5 billion, on a net present value basis. This represents a significant increase in estimated rate increases and benefit reductions achieved since December 31, 2024, including $1.0 billion of value from rate action approvals in 2025 and an increase of $2.3 billion in the value of benefit reductions connected with our previously achieved rate actions and legal settlements from the impact of our assumption updates.

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The following table sets forth filing approvals as part of our multi-year in-force rate action plan for the years ended December 31:

During the year ended December 31, 2025, we also submitted 83 new filings on approximately $763 million in annualized in-force premiums.

The approval process for in-force rate actions and the amount and timing of the premium rate increases and associated benefit reductions approved vary by state and product. In certain states, the decision to approve or disapprove a rate increase can take a significant amount of time, and the approved amount may be phased in over time. After approval, insureds are provided with written notice of the increase, and increases are generally applied on the insured’s next policy anniversary date. At that time, policyholders make an election to either pay the full increase or reduce their benefits, and therefore, mitigate some or all of the rate increase. As a result, the benefits of any rate increase are not fully realized until the implementation cycle is complete and are, therefore, expected to be realized over time.

We continue to work closely with the NAIC and state regulators to demonstrate the broad-based need for actuarially justified rate increases in order to pay future claims. Because obtaining actuarially justified rate increases and associated benefit reductions is important to our ability to pay future claims and reduces cross-state premium inequities, we will consider litigation against states that decline to approve those actuarially justified rate increases. As of December 31, 2025, we were in litigation with one state that has refused to approve actuarially justified rate increases for certain products.

Life insurance

Liability remeasurement (gains) losses

The following table sets forth the pre-tax components of the liability remeasurement (gains) losses, net of reinsurance, of our life insurance products for the periods indicated:

_______________________

(1)We define “NM” as not meaningful for increases or decreases greater than 200%.

For additional discussion of liability remeasurement (gains) losses, see the comparison for this line item above.

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Annuities

Liability remeasurement (gains) losses

The following table sets forth the pre-tax components of the liability remeasurement (gains) losses, net of reinsurance, of our annuity products for the periods indicated:

_______________________

(1)We define “NM” as not meaningful for increases or decreases greater than 200%.

For additional discussion of liability remeasurement (gains) losses, see the comparison for this line item above.

Corporate and Other

Results of operations

The following table sets forth the results of operations relating to Corporate and Other for the periods indicated:

_______________________

(1)We define “NM” as not meaningful for increases or decreases greater than 200%.

(2)The year ended December 31, 2025 included a $24 million tax benefit related to a release of a portion of the valuation allowance on certain deferred tax assets.

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2025 compared to 2024

Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders

The adjusted operating loss decreased primarily from a $17 million tax benefit related to a release of a portion of the valuation allowance on certain deferred tax assets, mostly offset by higher expenses related to CareScout growth initiatives in 2025.

Revenues

For a discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.”

Benefits and expenses

Acquisition and operating expenses, net of deferrals, increased primarily from higher expenses related to CareScout growth initiatives in 2025.

Interest expense decreased from a lower floating interest rate on Genworth Holdings’ junior subordinated notes in 2025 and from the repurchase of Genworth Holdings’ debt in 2024.

The increase in the benefit for income taxes was primarily related to a $41 million release of a portion of the valuation allowance on certain deferred tax assets in 2025.

Investments and Derivative Instruments

Trends and conditions

Investments

During the year ended December 31, 2025, our investment portfolio was impacted, and we believe will continue to be impacted, by the following macroeconomic trends:

•The U.S. Federal Reserve decreased interest rates by 75 basis points in 2025 while it continued to monitor labor market conditions and inflation, including any impacts from rising tariffs, which will influence its plan for any additional changes to interest rates in 2026.

•During the fourth quarter of 2025, the U.S. Treasury yield curve steepened compared to both September 30, 2025 and December 31, 2024 as short-term yields decreased more than changes experienced in long-term yields driven by mixed economic data and increased concerns with the U.S. federal government’s fiscal deficit.

•Credit spreads ended the fourth quarter of 2025 wider compared to September 30, 2025 as the U.S. federal government shutdown and expectations for high artificial intelligence-driven data center capital expenditures resulted in periods of credit spread widening during the quarter. However, the market shifted towards a more positive sentiment towards the end of the fourth quarter of 2025, and credit spreads began to tighten as the U.S. federal government shutdown ended and strong demand from yield-focused investors supported a renewed shift toward a willingness to take on higher risk. Equity markets mirrored these trends and fluctuations, achieving all-time highs by the end of the fourth quarter of 2025.

•As of December 31, 2025, our fixed maturity securities portfolio, which was 97% investment grade, comprised 75% of our total invested assets and cash.

Derivatives

•As of December 31, 2025, $1.0 billion notional of our derivatives portfolio was cleared through the Chicago Mercantile Exchange (“CME”).

•The customer swap agreements that govern our cleared derivatives contain provisions that enable our clearing agents to request initial margin in excess of CME requirements. As of December 31, 2025, we posted initial margin of $76 million to our clearing agents, which represented $38 million more than was otherwise required by the clearinghouse. Because our clearing agents serve as guarantors of our obligations

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to the CME, the customer agreements contain broad termination provisions that are not specifically dependent on ratings.

•As of December 31, 2025, $12.7 billion notional of our derivatives portfolio was in bilateral OTC derivative transactions pursuant to which we have posted aggregate independent amounts of $585 million and are holding collateral from counterparties in the amount of $17 million.

Investment results

The following table sets forth information about investment income, excluding net investment gains (losses), for each component of our investment portfolio for the years ended December 31:

_______________________

(1)Limited partnership investments are primarily equity-based and do not have fixed returns by period.

(2)Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation.

Yields are based on net investment income as reported under U.S. GAAP and are consistent with how we measure our investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments.

Gross annualized weighted-average investment yields were unchanged for 2025 compared to 2024 from lower net investment income on lower average invested assets in 2025. Net investment income decreased as higher income from limited partnerships was more than offset by lower policy loan rates in our corporate-owned life insurance products, lower amortization of terminated cash flow hedges and lower returns on our short-term investments due to a decrease in interest rates in 2025.

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The following table sets forth net investment gains (losses) for the years ended December 31:

2025 compared to 2024

•We recorded $69 million of higher unrealized gains on limited partnerships driven by more favorable private equity market performance in 2025. We recorded $27 million of lower net unrealized gains on equity securities driven by less favorable public equity market performance in 2025.

•During 2025, we increased the provision for credit losses for commercial mortgage loans primarily as a result of updates to the analytical model used to determine the adequacy of the allowance for credit losses. During 2024, we increased the provision for credit losses for both commercial mortgage loans and bank loan investments as a result of annual updates to the underlying metrics included in the analytical model used to determine the adequacy of the allowance for credit losses, as well as updates to certain assumptions for bank loan investments. We also recorded a higher net change in the allowance for credit losses on available-for-sale fixed maturity securities of $10 million in 2025.

Investment portfolio

The following table sets forth our cash, cash equivalents and invested assets as of December 31:

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For a discussion of the change in cash, cash equivalents and invested assets, see the comparison for these line items under “—Consolidated Balance Sheets.” See note 4 to our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data” for additional information related to our investment portfolio.

We hold fixed maturity and equity securities, limited partnerships, derivatives, embedded derivatives and certain other financial instruments, which are carried at fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. As of December 31, 2025, approximately 6% of our investment holdings recorded at fair value was based on significant inputs that were not market observable and were classified as Level 3 measurements. See note 19 to our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data” for additional information related to fair value.

The following table presents our public, private and total fixed maturity securities by the Nationally Recognized Statistical Rating Organizations (“NRSRO”) designations and/or equivalent ratings, as well as the percentage, based upon fair value that each designation comprises. Certain fixed maturity securities that are not rated by an NRSRO are shown based upon internally prepared credit evaluations.