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DATE

Wednesday, May 6, 2026 at 9 a.m. ET

CALL PARTICIPANTS

  • President and Chief Executive Officer — Thomas J. McInerney
  • Chief Financial Officer — Jerome Upton
  • Chief Investment Officer — Kelly Saltsgeber

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TAKEAWAYS

  • Net Income -- $47 million reported for the quarter, reflecting consolidated performance.
  • Adjusted Operating Income (Excluding Closed Block) -- $109 million, led by Enact and offset by Corporate and Other losses.
  • Enact Adjusted Operating Income -- $140 million, including a $39 million pretax reserve release driven by cure performance.
  • Holding Company Liquidity -- $166 million in cash and liquid assets at quarter end.
  • Enact Capital Returns to Parent -- $99 million received, supporting share repurchases and capital allocation.
  • Total Share Repurchases To Date -- $875 million completed at an average price of $6.38 per share as of April 30, 2026.
  • Q1 Share Repurchases -- $66 million executed at $8.61 per share average; $19 million additional through April 30, 2026.
  • Enact New Insurance Written -- $13 billion, lower sequentially due to seasonality but higher year over year from lower early-quarter rates.
  • Enact Primary Insurance in Force -- $272 billion, up year over year from sustained new insurance written and high persistency.
  • Enact Earned Premiums -- $243 million, slightly below both the prior quarter and the prior year.
  • Enact Loss Ratio -- 15% for the quarter, aided by the $39 million pretax reserve release.
  • Enact PMIERs Sufficiency Ratio -- 162%, equating to $1.9 billion above regulatory requirements.
  • Genworth Share of Enact Book Value (Including AOCI) -- $4.3 billion at quarter end, slightly below year-end 2025 due to investment portfolio marks.
  • Closed Block Adjusted Operating Loss -- $32 million, including a $36 million pretax liability remeasurement loss from A to E variances, partially offset by $65 million pretax insurance recoveries.
  • MYRAP Progress -- $5 million of gross incremental premium approvals achieved in Q1, with $45 million already secured in Q2.
  • Closed Block Risk Reduction -- Exposure to 5% compound benefit inflation options has decreased below 36%; lifetime benefit policies now represent 11% of total.
  • Cumulative Value from Rate Actions -- $34.5 billion net present value realized since 2012 through premium increases and benefit reductions.
  • CareScout Service Revenues -- $6 million recognized in the quarter; full-year guidance maintained at $25 million.
  • CareScout Matches -- Approximately 1,500 matches facilitated in the quarter, including first direct-to-consumer matches and growth in senior living communities.
  • CareScout Network Expansion -- Network now covers about 97% of U.S. population aged 65 and older across home care.
  • Planned CareScout Network Reach by End of 2026 -- Expecting over 1,000 home care locations and roughly 2,000 senior living communities in the CareScout Quality Network.
  • CareScout Services Investment -- $50 million to $55 million planned for 2026 to scale platform and expand product offerings.
  • Absa Litigation Update -- Appeal hearing scheduled for July with potential $750 million recovery (no taxes expected), timing contingent on court decision; proceeds not factored into existing capital plans.
  • Holding Company Debt -- Reduced to $778 million following $5 million principal retirement.
  • Cash Interest Coverage Ratio -- Approximately nine times on debt service.
  • Full-Year Enact Capital Return Guidance -- $500 million expected to shareholders, with $405 million to $450 million targeted for Genworth's holding company.
  • Share Repurchase Allocation Guidance -- $195 million to $225 million projected for fiscal 2026, subject to market conditions.
  • CareScout Insurance Investment Outlook -- No new investments planned in 2026 after $85 million spent to launch the initial product last year.
  • Alternative Assets Program -- Targeting 12% returns, predominantly investment grade; 1% of portfolio in middle market loans via a single manager, with no software sector exposure.
  • Private Credit Portfolio -- Minimal direct lending (1% of portfolio), all investment grade except for this segment; sourced through separate accounts and experienced advisers.
  • Investment Yields -- New money yields reached roughly 6.3% in the quarter in the life insurance subsidiaries.
  • GLIC RBC Ratio Commentary -- Targeting above $250 million; ended quarter at 2.89x required capital, "almost three times required capital," per management.
  • Policyholder Behavior -- 61% of those offered benefit reductions have accepted, reducing concentration in high-risk features.

SUMMARY

Genworth Financial (GNW +2.54%) advanced its business model by excluding closed block results from consolidated adjusted operating income, signaling a shift to align reporting with strategic direction. Enact's $140 million adjusted operating income and $99 million capital return reinforced the holding company's liquidity and funding of buybacks, while CareScout generated $6 million in service revenue and broadened its service offering to direct-to-consumer matches in new care segments. Management provided precise guidance, expecting up to $450 million capital return from Enact and $25 million CareScout revenue for the year, with targeted investments focused on scaling CareScout’s platform and benefit realization from multiyear rate actions. The Absa litigation, if successful, could add $750 million in cash that is not included in existing capital deployment plans but will follow current priorities if realized.

  • Management stated, "we are well above, at almost three times required capital, what the regulators require" regarding GLIC's RBC position, clarifying statutory capital strategy.
  • The closed block achieved $45 million in additional premium approvals early in the second quarter, indicating ongoing traction in the MYRAP program.
  • CareScout plans to launch its CareAssurance worksite product later this year to expand distribution through employers and associations.
  • Management said, "We continue to integrate new technology and operational capabilities across the organization, enabled by artificial intelligence," establishing tech-driven efficiency as a multi-segment priority.

INDUSTRY GLOSSARY

  • CareScout Quality Network (CQN): Genworth's proprietary network platform connecting aging consumers and families to vetted home care and senior living providers with negotiated service arrangements.
  • MYRAP (Multiyear Rate Action Plan): Strategic initiative to improve long-term care insurance block sustainability through scheduled premium increases and/or benefit reductions.
  • PMIERs (Private Mortgage Insurer Eligibility Requirements): Risk-based capital standards required for private mortgage insurers to operate and insure loans purchased by U.S. government-sponsored enterprises.
  • AOCI (Accumulated Other Comprehensive Income): Reporting component reflecting unrealized gains and losses from specific assets, impacting book value but not net income.
  • A to E (Actual to Expected): Claims experience measurement comparing actual results to assumptions, often driving adjustments in reserves or reported financials.
  • RBC (Risk-Based Capital): Regulatory capital adequacy metric for insurers, measuring minimum capital required to support underwriting and investment risks.
  • GLIC (Genworth Life Insurance Company): The primary Genworth U.S. life and long-term care insurance subsidiary referenced in discussions of statutory capital.

Full Conference Call Transcript

Tom McInerney, President and Chief Executive Officer, and Jerome Upton, Chief Financial Officer. Following our prepared remarks, we will open the call for questions. In addition to our speakers, Jamala Arland, President and CEO of our Closed Block Insurance business, Greg Caruana, General Counsel, Kelly Saltsgeber, Chief Investment Officer, and Samir Shah, CEO of CareScout, will also be available to take your questions. During this morning's call, we may make various forward-looking statements. Our actual results may differ materially from such statements. We advise you to read the cautionary notes regarding forward-looking statements in our earnings release and related presentation as well as the risk factors of our most recent annual report on Form 10-K as filed with the SEC.

Today's discussion also includes non-GAAP financial measures that we believe may be meaningful to investors. In our investor materials, non-GAAP measures have been reconciled to GAAP where required and in accordance with SEC rules. Additionally, references to statutory results are estimates due to the timing of the statutory filing. And now I will turn the call over to our President and CEO, Tom McInerney.

Tom McInerney: Thank you, Christine, and thank you all for taking the time to join our first quarter earnings call this morning. In the first quarter, we continued to execute across our strategic priorities and have once again generated strong shareholder value. We advanced our long-term growth strategy through CareScout, and we further strengthened the self-sustainability of our closed block. Before turning to our results, I would like to briefly address an update to how we present and evaluate our core operating earnings.

As we have discussed, our closed block of legacy insurance products is separate from our other business lines and self-sustaining, and the quarter-to-quarter GAAP volatility does not reflect the underlying economics or how the business is strategically positioned for the long term. As a result, going forward, we will report Genworth Financial, Inc.'s consolidated adjusted operating income excluding the closed block. We believe this view of our operating performance better aligns with our strategy and capital allocation framework, driving current and future shareholder returns through Enact and long-term growth opportunities with CareScout. We will continue to report the adjusted operating income for the closed block separately in our disclosures.

For the first quarter, Genworth Financial, Inc. reported net income of $47 million with adjusted operating income, excluding the closed block, of $109 million. Our results this quarter were led by continued strong performance from Enact, with adjusted operating income of $140 million. The holding company ended the quarter with a solid liquidity position, holding $166 million of cash and liquid assets. Turning to our strategic priorities, I am pleased with our progress as we execute with discipline across the businesses. First, we continue to create shareholder value through Enact's growing market value and capital returns.

Our approximately 81% ownership stake in Enact remains a key source of cash flows to Genworth Financial, Inc. and helps fuel our disciplined approach to capital allocation. This strategy includes returning capital to shareholders through share repurchases while also investing in our long-term growth opportunities through CareScout. This balanced approach enables us to drive near-term value while still positioning the company for sustainable long-term growth. In the first quarter, we received $99 million in total capital returns from Enact. Supported by these strong cash flows, we continue to execute on our share repurchase program.

Since the initial authorization of our current buyback program, we have bought back a total of $875 million worth of shares at an average price of $6.38 as of April 30, 2026. Turning to our next strategic priority, we continue to drive growth from CareScout, which represents a significant long-term opportunity given the growing demand for aging care, including from 70 million baby boomers now aged 62 to 80 in 2026. We are building a comprehensive aging platform designed to help people understand, find, and fund the quality long-term care they need, all in one place. We do this in three ways.

First, comprehensive solutions, providing access to a full suite of services across the aging journey from care planning and guidance to finding providers to funding care. Second, expert guidance, leveraging our data, technology, and decades of claims experience to match individuals with the right care provider options and help them make informed decisions with confidence. And third, technology-enabled human connection, delivering that expertise through trained advisers who provide personalized local support and help families navigate what is often a complex, fragmented, and emotional process. Under Samir Shah's leadership, we are integrating these capabilities across the platform to deliver a seamless experience and build a capital-light, scalable business for long-term growth.

During the first quarter, we continued to expand the CareScout Quality Network, or CQN, at an impressive pace across both home care and senior living communities. In the first quarter, we added our first senior living communities to the network. This development marks another important step in broadening access beyond home care and expanding options available to consumers in the marketplace. As we continue to integrate senior living communities from our acquisition of SeniorLeaf, we are building a more comprehensive network that can support people across different stages of the aging journey. By the end of 2026, we anticipate having more than 1,000 home care locations and approximately 2,000 senior living communities as part of the CQN.

As a reminder, our revenue model for senior living communities differs from our home care model, with CareScout earning a one-time placement fee upon a successful move-in, consistent with how the broader industry operates. Over time, we expect this to complement our existing home care discount model and contribute to a more diversified, scalable, and substantial stream of revenue in the business. In home care, our network now covers approximately 97% of the U.S. population aged 65 and older. We continue to see strong interest from more providers every day as we expand into additional markets and strengthen coverage in geographies with high demand.

As the network grows, we remain focused on optimizing coverage and pricing efficiency while ensuring quality, consistency, and long-term scalability. We facilitated approximately 1,500 matches between care seekers and providers in the first quarter, reflecting strong sequential and year-over-year growth. This was driven in part by the expansion beyond home care matches and into senior living communities. The Q1 figure includes our first direct-to-consumer matches, which we are making in both home care and senior living communities. While quarterly pacing may vary, we are building momentum and remain on track toward our previously discussed target of approximately 7,500 matches in 2026, compared to 3,255 matches in 2025.

As our network continues to scale and brand awareness grows, we expect to drive increased traction across the platform. We also expect a higher share of Genworth Financial, Inc. policyholders to utilize CQN providers and benefit from more efficient care coordination by our team, helping to stretch their benefit dollars further while generating claim savings for the closed block over time. We also continue to work with other insurance carriers managing closed LTC blocks to leverage the CareScout Quality Network. Integrating other LTC insurance carriers along with select affinity groups represents an important opportunity to introduce more consumers to the CareScout brand, extend our platform beyond Genworth Financial, Inc., and generate additional fee-based revenues over time.

In parallel, we are scaling our fee-for-service offerings that generate recurring revenue streams and create additional pathways for CareScout's growth. Overall, we continue to expect $25 million of CareScout service revenues in 2026, and we are making steady progress towards that goal. Turning to CareScout Insurance, we continue to build out our differentiated product offerings and expand our distribution capabilities. Our new CareAssurance product is clearly differentiated in the LTC insurance market by giving customers and their families access to a more holistic aging experience through our services business, including access to the CareScout Quality Network, wellness support tools, and care planning services.

We believe this integrated approach provides a distinct advantage in a market that remains fragmented and very underserved relative to the growing demand for long-term care over time. Looking ahead, we plan to launch our CareAssurance worksite product later this year. The worksite channel will broaden access through employers and associations. We are also developing additional offerings, including hybrid LTC insurance products with innovative designs that pair a minimum LTC benefit with low-cost fixed income and equity accounts designed for accumulation. Hybrid products offer a broader set of funding solutions designed to meet evolving customer needs and solve critical gaps in retirement income and retirement security in the marketplace.

As the U.S. population ages, CareScout will continue to broaden its capabilities with a focus on ensuring families can more easily access the support, guidance, and resources they need to navigate the complexities of aging. Turning to our third priority, we continue to actively manage our self-sustaining, customer-centric closed block of LTC, life, and annuity products. This business is being managed with a focus on delivering high-quality policyholder experiences, maintaining capital discipline, and ensuring long-term sustainability as we position Genworth Financial, Inc. for growth through CareScout. Our multiyear rate action plan, or MYRAP, remains our most effective lever for maintaining that sustainability. In the first quarter, we secured $5 million of gross incremental premium approvals.

We have built on this progress in the second quarter, already achieving another $45 million. As we enter the later stages of the MYRAP program, we expect premium approvals to be lower and benefit reductions to be higher because the future premium runway is shortened as Genworth Financial, Inc. policyholders age, as shown on Appendix Slide 20. That said, we expect full-year 2026 premium approvals and benefit reductions to be broadly in line with 2025 levels, contributing approximately $1 billion of economic value on a net present value basis. Since the program began in 2012, we have achieved approximately $34.5 billion in net present value through a combination of premium increases and benefit reductions.

We remain focused on executing this program with discipline to ensure the long-term self-sustainability of the closed block. Next, I will provide a brief update on the Absa litigation. The appeal hearing is scheduled for July. We expect the Court of Appeal to reach a decision within approximately three to six months of that hearing. If the judgment is ultimately upheld and all appeals are favorably resolved, we expect to recover a total sum of approximately $750 million, subject to exchange rates at that time. We do not expect to pay taxes on this recovery. As we said previously, any potential recoveries are not factored into our capital allocation plans.

If proceeds are received, we would deploy them in line with our existing priorities: investing in CareScout, returning capital to shareholders, and reducing debt. Before I turn it over to Jerome, I would like to briefly address the current macroeconomic backdrop. We continue to closely monitor an uncertain and dynamic external environment, including uneven consumer spending and the potential for higher inflation and interest rates. We believe Genworth Financial, Inc. is well positioned to navigate a range of market conditions in 2026 and beyond. Enact continues to operate from a position of strength supported by disciplined underwriting and a strong capital position and provides Genworth Financial, Inc. with strong free cash flow.

We continue to integrate new technology and operational capabilities across the organization, enabled by artificial intelligence. We have several AI and generative AI initiatives underway with key partners focused on improving efficiencies in claim management, enhancing the policyholder and customer service experience, and supporting more scalable growth across CareScout. Even as we advance these capabilities, our approach remains grounded in the tech-enabled, human-centered support our policyholders rely on throughout the aging journey. In closing, we are pleased with the progress we have made in the first quarter across our strategic priorities, supported by another quarter of strong performance from Enact.

As we move towards the midway point of the year, we remain focused on disciplined execution and building long-term value for our shareholders. And with that, I will turn the call over to Jerome.

Jerome Upton: Thank you, Tom, and good morning, everyone. We entered 2026 with strong momentum, and as Tom highlighted, we continued to execute against our strategic priorities while enhancing our financial flexibility and positioning the company for long-term success. Enact's first quarter results reflected continued strategic and operational strength underpinned by its strong balance sheet and liquidity profile that continue to create value and fuel our capital allocation priorities. We also made further progress scaling CareScout and strengthening the self-sustainability of our closed block. I will begin with an overview of our first quarter financial results and key drivers, followed by a discussion of our investment portfolio and holding company liquidity.

I will then cover our capital allocation priorities and provide an update on our guidance for 2026 before we open the call for Q&A. Starting with the financial results on Slide 9, as Tom mentioned, going forward, we are updating the presentation of our consolidated earnings to exclude results from our Closed Block segment to better align with our strategy and capital allocation framework managing the closed block on a standalone basis. We will continue to report the adjusted operating income for the closed block separately in our disclosures. First quarter adjusted operating income, excluding the closed block, was $109 million, driven by strong performance in Enact, partially offset by losses in Corporate and Other.

Enact delivered another strong quarter of performance with adjusted operating income of $140 million to Genworth Financial, Inc. Results included a pretax reserve release of $39 million reflective of continued strong cure performance. Results are down versus the prior quarter reflecting a lower reserve release and up versus the prior year reflecting increased investment income and favorable expenses. In Corporate and Other, we reported an adjusted operating loss of $31 million for the quarter, reflecting continued investment in CareScout and ongoing holding company debt service. The prior quarter included a benefit from favorable tax-related items. Our Closed Block segment reported an adjusted operating loss of $32 million.

This was driven by a liability remeasurement loss related to the actual variances from expected experience, or A to E, of $36 million pretax, primarily in LTC. Our results in LTC were favorably impacted by net insurance recoveries in the quarter of $65 million pretax. Mortality in both LTC and life insurance was seasonally higher sequentially but lower than the prior year. While results can vary quarter to quarter, we expect to see A to E losses in the range of approximately $300 million for the full year 2026. As a reminder, these GAAP fluctuations do not impact our cash flows, economic value, or how we manage the business.

Now taking a closer look at Enact's performance underlying its strong financial results beginning on Slide 10, new insurance written of $13 billion in the quarter decreased versus the prior quarter primarily based on seasonal trends but increased versus the prior year as a result of lower interest rates early in the quarter. Primary insurance in force increased year over year to $272 billion supported by the growth in new insurance written and continued elevated persistency. Earned premiums in the quarter were $243 million, down slightly versus the prior quarter and prior year. As shown on Slide 11, Enact's favorable $39 million pretax reserve release drove a loss ratio of 15%.

Enact's estimated PMIERs sufficiency ratio remains strong at 162%, or approximately $1.9 billion above requirements. Genworth Financial, Inc.'s share of Enact's book value, including AOCI, was $4.3 billion at the end of the first quarter, down slightly from $4.4 billion at year-end 2025, driven by movements in the market value of the investment portfolio as a result of increased interest rates. While maintaining its strong balance sheet, Enact has continued to deliver significant capital returns to Genworth Financial, Inc. We received $99 million from Enact in the first quarter. Looking ahead, Enact remains well positioned to navigate the current macroeconomic environment supported by its strong balance sheet and disciplined underwriting.

Turning to our Closed Block segment on Slide 12, we continue to proactively manage and reduce LTC risk and improve self-sustainability through prudent in-force management, including benefit reductions and premium rate increases. As of the end of the first quarter, we had achieved approximately $34.5 billion of benefit reductions and premium increases on a net present value basis since 2012. As part of our multiyear rate action plan, we offer a suite of options to help policyholders manage premium increases while maintaining meaningful coverage. These benefit solutions enable us to reduce our exposure to certain higher-cost features, such as 5% compound benefit inflation options and large benefit pools.

Cumulatively, about 61% of policyholders offered a benefit reduction have elected to take one, lowering our long-term risk. These initiatives have helped reduce our exposure to the riskiest LTC policy features. Notably, our exposure to the 5% compound benefit inflation option has decreased below 36%, down from 57% in 2014, and the percentage of our policies with lifetime benefits has decreased to 11%. We remain committed to managing GLIC and its subsidiaries as a closed system, leveraging their existing reserves and capital to cover future claims. We will not inject capital into these companies and, given the long-tail nature of our LTC insurance policies, with peak claim years still over a decade away, we also do not expect capital returns.

Turning to Slide 13, our investment portfolio remains resilient and is conservatively positioned. The majority of our assets are in investment-grade fixed maturities held to support our long-duration liabilities. New money yields continue to exceed those on sales and maturities, with cash in our life insurance companies being invested at yields of approximately 6.3% for the quarter. Our alternative assets program is largely comprised of diversified private equity investments and has targeted returns of approximately 12%. Quarterly realizations fluctuate, with first quarter transactions affected by geopolitical tensions. We remain committed to growing our alternative assets portfolio within regulatory limitations due to its robust track record of returns, diversification benefits, and natural fit with long-term liabilities.

Next, turning to the holding company on Slide 14, we ended the quarter with $166 million in cash and liquid assets. When evaluating holding company liquidity for the purpose of capital allocation, and calculating the buffer to our debt service target, we excluded approximately $50 million of cash held for future obligations, including advanced cash payments from our subsidiaries. Moving to capital allocation on Slide 15, our priorities remain unchanged. We will continue to invest in long-term growth through CareScout, return cash to shareholders through our share repurchase program when our share price trades below intrinsic value, and opportunistically retire debt. During the quarter, we repurchased $66 million of shares at an average price of $8.61 per share.

We repurchased an additional $19 million through April 30, 2026. We also retired approximately $5 million of principal debt in the quarter, bringing our holding company debt down to $778 million. We maintain a disciplined capital structure with a cash interest coverage ratio on debt service of approximately nine times. I will now turn to our outlook for 2026 and provide an update on the guidance we shared in February on our fourth quarter earnings call. As announced yesterday, Enact has increased its quarterly dividend and continues to expect to return approximately $500 million of capital to its shareholders in 2026.

Based on our approximate 81% ownership position, we continue to expect to receive around $405 million to $450 million from Enact for the full year. Second, we continue to create value for our shareholders through our share repurchase program. For the full year 2026, we now expect to allocate between $195 million and $225 million to share repurchases. As we have said before, this range may vary depending on market conditions, business performance, holding company cash, and our share price. Third, turning to CareScout. As Tom indicated, in the services business, we continue to target approximately 7,500 matches in 2026, including matches across both home care providers and senior living communities.

CareScout services generated $6 million in revenue in the first quarter, and we continue to expect revenue in this business of $25 million for the full year. We plan to invest approximately $50 million to $55 million in services in 2026 as we continue scaling the business and expanding its reach. These investments will support the continued build-out of our technology platform, the addition of new products and care settings, and growth across both consumer and B2B channels. We are also deepening carrier partnerships and enhancing operational infrastructure to support higher volumes, recurring revenue, and long-term scalability.

For insurance, we currently do not expect any additional investments in 2026 following our $85 million investment to launch our inaugural product last year. As we expand our product suite, grow our distribution network and sales levels, and refine our operating platform, we will make appropriate investments in the business. We have made good progress overall with CareScout and remain confident in its continued growth in 2026. As we have noted previously, scaling these businesses and achieving breakeven will take time. In closing, we are delivering on our strategic priorities and enhancing financial flexibility while proactively managing our liabilities and risk.

Our focus remains on driving durable growth through Enact and CareScout, which serve as a foundation of our long-term value creation strategy. At the same time, we are strengthening the self-sustainability of our closed block, maintaining our commitment to return capital to shareholders through share repurchases, and opportunistically retiring debt. These actions position Genworth Financial, Inc. to deliver long-term value for our shareholders. We will now open the call for questions. Now, let us open up the line for questions. Thank you.

Operator: Ladies and gentlemen, we will now begin the Q&A portion of the call. As a reminder, please refrain from using cell phones, speakerphones, or headsets. Please press star 1 to ask a question. We will go first to a question from Joshua Estrach with Credit Insights. Your line is open. Please go ahead.

Analyst: Hey. Good morning, folks. Thanks for taking my question. So, modest decline in the estimated RBC ratio at GLIC at quarter-end, and I know you folks have been adamant for years that no capital contributions to life entities are planned. But I am wondering if there is, like, a specific RBC ratio level at which you would either be forced or consider contributing capital, or, you know, alternatively, if there is a lever you can pull to bolster RBC in the life units to the extent it becomes necessary without a capital contribution.

Tom McInerney: Thank you for your question, Josh. Our target is to have RBC at $250 million or more, and so we are very comfortable with where we are. Obviously, the RBC did go down in the first quarter because of the statutory loss, but that is why we have quite a bit of room. There is no requirement from a regulatory perspective. I mean, we are well above, at almost three times required capital, what the regulators require.

Jerome Upton: Josh, good morning. Thanks for the question. Look, we felt some pressure in the first quarter, as Tom indicated, down to 2.89. That is still a good ratio. We did see mortality; it went up in the quarter, but it certainly was not at the level that we would have expected. I think that impacted LTC, but I believe that was felt across the industry as well. We also saw some life pressure from our post-level term block coming through and some reserve build. We do not expect that to continue. What I would highlight to you is we are going to continue to execute our strategy.

That strategy and our statutory results are premised upon our ability to get the multiyear rate action plan, which, as Tom highlighted, has been very successful, our benefit solutions, and our Live Well, Age Well program as well as our CareScout Quality Network. We are active in achieving those benefits, and those will be key drivers of our RBC and our statutory results going forward.

Operator: Thank you very much.

Analyst: And if you do not mind, maybe I can sneak in one more here and pivot a little bit. I appreciate the color and the commentary you gave earlier on the investment portfolio front, but if maybe you can give a little bit more detailed color on the private credit portfolio, maybe even just at a high level, the characteristics either from a ratings or asset class or sector basis, and maybe you can just briefly tell us how you perhaps source the investments or any of the partnerships you might have to bolster your private credit capabilities.

Jerome Upton: Sure. Thanks for the question. Kelly is on the call, so we will ask Kelly to comment.

Kelly Saltsgeber: Yes, thanks, Josh, for the question. Private credit has been referred to in the media of late really as what we call direct lending or middle market loans, which are private loans to small companies, and we have very minimal exposure there. We have about 1% of our portfolio in middle market loans, and we access that market through a well-regarded and experienced manager through a separately managed account. Our direct lending portfolio actually has no exposure to what is classified as the software category, and so it is very different from what you are reading about with some of the BDCs. Now, we have other private investments.

We have been in the private placement market for decades, and that is an investment-grade portfolio. We also have recently started accessing private asset-based finance, also primarily through external managers, and that is an investment-grade mandate with an average rating of single-A or triple-B. We also access the private equity market mainly through advisers that are very experienced in the space, including Neuberger and JPMorgan. I would say our private exposure is almost exclusively investment grade with the exception of the 1% in middle market loans that I mentioned.

Analyst: Got it. Thank you very much. I appreciate everyone's time this morning.

Jerome Upton: Thanks, Josh.

Operator: Once again, ladies and gentlemen, it is star 1 if you have a question. It appears there are no questions at this time. Ladies and gentlemen, I will now turn the call back over to Mr. McInerney for closing comments.

Tom McInerney: Thank you all very much for joining the call today and for your continued support and interest in Genworth Financial, Inc. At this point, I will turn the call back over to Jess to have her close it.

Operator: Thank you, sir. Ladies and gentlemen, that will conclude the call. We thank you for your participation. You may disconnect at this time.