AM Best Revises Outlooks to Positive for Genworth Financial Group’s Members; Affirms Credit Ratings of Genworth Financial, Inc. and Genworth Life and Annuity Insurance Company

SEPTEMBER 17, 2025 03:29 PM (EDT)

AM Best Revises Outlooks to Positive for Genworth Financial Group's Members; Affirms Credit Ratings of Genworth Financial, Inc. and Genworth Life and Annuity Insurance Company

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FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 17, 2025 03:29 PM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of C++ (Marginal) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "b+" (Marginal) of Genworth Life Insurance Company (GLIC) (Wilmington, DE) and Genworth Life Insurance Company of New York (GLICNY) (New York, NY). These companies are referred to as Genworth Financial Group. In addition, AM Best has affirmed the FSR of B- (Fair) and the Long-Term ICR of "bb-" (Fair) of Genworth Life and Annuity Insurance Company (GLAIC) (Richmond, VA). Concurrently, AM Best has affirmed the Long-Term ICRs of bb-" (Fair) of Genworth Financial, Inc. and Genworth Holdings, Inc. (both domiciled in Delaware), as well as their Long-Term Issue Credit Ratings (Long-Term IRs). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed list of the Long-Term IRs.)

Additionally, the ratings reflect Genworth Financial Group's balance sheet strength, which AM Best assesses as weak, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The ratings of GLAIC reflect its balance sheet strength, which AM Best assesses as weak, as well as its adequate operating performance, limited business profile and appropriate ERM.

The ratings of GLAIC also reflect its adequate level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). The company's adequate operating performance reflects a trend of positive operating earnings in recent years and has contributed to modest BCAR score improvements. AM Best will continue to monitor the company's ability to improve its current balance sheet metrics as the company manages its runoff businesses.

The revised outlook to positive from stable of Genworth Financial Group reflects its risk-adjusted capitalization, as measured by BCAR, and other capital metrics. While these metrics remain low and volatile, they have shown continued improvement. Management continues to achieve positive results from the execution of its strategy of obtaining actuarially supported premium rate increases and reducing future benefit obligations on in-force, long-term care (LTC) policies. This has contributed to sustained capital levels, supported by improved in-force management and strong investment returns. However, the timing and effectiveness of premium rate increase approvals and benefit reductions remain a key financial risk as the group is still anticipating peak LTC claims.

The ratings of Genworth Financial, Inc. and Genworth Holdings, Inc. reflect their recent trend of an improved balance sheet and operating performance. AM Best does note their dependence on dividends from Enact Holdings, Inc [Nasdaq: ACT], to service debt obligations, which supports both companies' capital allocation priorities of share repurchases, opportunistic debt reduction and growth investments in CareScout.

The following Long-Term IRs have been affirmed with stable outlooks:

Genworth Holdings, Inc.-

- "bb-" (Fair) on $300 million 6.50% senior unsecured notes, due 2034

- "b" (Marginal) on $600 million fixed/floating rate junior subordinated notes, due 2066

The following indicative Long-Term IRs have been affirmed with stable outlooks:

Genworth Holdings, Inc.-

- "bb-" (Fair) on senior unsecured debt

- "b+" (Marginal) on subordinated debt

- "b" (Marginal) on preferred stock

Genworth Financial, Inc.-

- "bb-" (Fair) on senior unsecured debt

- "b+" (Marginal) on subordinated debt

- "b" (Marginal) on preferred stock

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activityweb page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.