Genworth Financial, Inc. (NYSE:GNW) 2024 First Quarter Earnings Report Call Record May 2, 2024
Genworth Financial wasn't among the 30 most popular stocks among hedge funds at the end of the third quarter (see the details).
operator: Good morning everyone. Welcome to Genworth Financial's Q1 2024 Earnings Conference Call. My name is Cynthia. I will be the coordinator today. [Operator Instructions]. I would now like to turn the presentation over to Sarah Cruz, Director of Investor Relations. Please move on.
Sarah Cruz: Thank you and good morning. Welcome to Genworth's Q1 2024 earnings call. A slide presentation accompanying this conference call will be available on the Investor Relations section of Genworth's website at investor.genworth.com. Our earnings releases and financial supplements are also available there and we encourage you to review these materials. Tom McInerney, President and CEO, will be speaking today. Jerome Upton Chief Financial Officer. After his prepared remarks, he will have time for questions and answers. In addition to the speakers, Mr. Jamara Arland, President and Chief Executive Officer of the U.S. Life Insurance Business; Chief Investment Officer Kelly Saltzgaber also takes questions.
We may make various forward-looking statements on this morning's conference call. Our actual results may differ materially from such statements. We encourage you to read the cautionary statements regarding forward-looking statements in our financial results announcement and related presentations and the risk factors in our most recent Annual Report on Form 10-K filed with the SEC. This morning's discussion also includes non-GAAP financial measures that may be meaningful to investors. In our investor relations materials, non-GAAP measures are reconciled to GAAP as appropriate in accordance with SEC rules. It also includes references to statutory results or estimates due to the timing of the filing of statutory reports. I will now turn the call over to Tom McInerney, our president and CEO.
Thomas McInerney: Thank you very much, Sarah. Good morning everyone. Thank you for participating in the first quarter results briefing. Genworth continued to make strong progress in the first quarter, consistent with our strategic priorities of driving long-term growth and shareholder value. In the first quarter, Genworth reported net income of $139 million, or $0.31 per share, and adjusted operating income of $85 million, or $0.19 per share. Results were once again led by Enact, which had a very strong quarter with adjusted operating income of $135 million for Genworth. Enact also announced that it will expand its stock repurchase program by $250 million and increase its common dividend from $0.16 to $0.185 per share. We are very pleased with Enact's continued strong performance, capital levels and shareholder distributions.
Since Enact's IPO, Genworth has received approximately $675 million in capital from Enact. This includes his $61 million in the first quarter. We are very satisfied with our approximately 81% ownership interest in Enact. This is because Enact continues to generate significant revenues and is a significant source of cash flow, helping to fuel our stock repurchase program, opportunistic debt reduction and growth investments in CareScout. is. Our LTC division reported adjusted operating income of $3 million for the quarter due to seasonal increases in claims volume. Meanwhile, our Life and Annuities segment reported an adjusted operating loss of $15 million due to life insurance losses. Jerome will discuss the performance of these segments in more detail later. On a statutory basis, the US life insurance company had a very strong quarter, with pre-tax profits estimated at $258 million. This was primarily driven by gains from his LTC in-force interest litigation, including the impact of legal settlements.
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