Detailed Narrative
CareScout's Integrated Growth Strategy
CareScout is positioned as Genworth's long-term growth engine, aiming to redefine long-term care through an innovative, consumer-focused platform. It combines a services business, which helps families navigate care decisions and find providers, with an insurance product, Care Assurance, offering financial protection. This integrated approach leverages technology and AI for improved customer service, underwriting, and product development, targeting both current care needs and future planning for the aging population.
CareScout Services Expansion and Seniorly Integration
CareScout Services made significant progress in 2025, expanding its Quality Network to approximately 790 home care providers across over 1,000 locations, covering 97% of the U.S. population aged 65 and older. The network facilitated 3,255 matches in FY25, exceeding targets. The acquisition of Seniorly in Q4 FY25 for $15 million expanded CareScout's reach into the direct-to-consumer market and added senior living options, with credentialing of major providers expected by the end of 2026.
Care Assurance Product Launch and Distribution
CareScout successfully launched Care Assurance, its inaugural stand-alone LTC insurance product, in Q4 FY25, now live in 40 states with 4 more pending approval. This product reestablishes Genworth's presence in the LTC insurance market with a conservative and durable structure. It differentiates through integrated services like access to the Quality Network and care planning. The company plans to broaden distribution channels with worksite and association group offerings later in 2026.
Closed Block Management and Resegmentation
Genworth continues to actively manage its self-sustaining Closed Block of LTC, Life, and Annuity businesses, now focused exclusively on existing policyholders. A resegmentation was completed in Q4 FY25 to better align reporting with business management, reflecting the cessation of new LTC sales in GLIC. The company remains committed to managing these entities as a closed system, leveraging existing reserves without injecting new capital, and aims for a high-quality policyholder experience and sustainable risk management.
In-Force Rate Actions and Risk Mitigation
The multiyear rate action plan (MYRAP) continues to be a key lever for stabilizing the Closed Block, achieving $34.5 billion in net present value since 2012, including $1 billion from 2025 approvals. These actions, combined with benefit reduction options, have significantly reduced exposure to risky LTC policy features, such as 5% compound benefit inflation options (down to <36% from 57% in 2014) and lifetime benefits (down to 11%). The CareScout Quality Network and Live Well | Age Well program are also expected to deliver claim savings and mitigate inflation risk.
Annual Assumption Reviews and Statutory Results
Genworth completed its annual assumption reviews for the Closed Block in Q4 FY25, with assumptions holding up in aggregate. The updates resulted in a net unfavorable impact of $6 million after tax to GAAP adjusted operating loss, primarily from LTC due to updated healthy life and near-term cost of care inflation assumptions, partially offset by favorable claim termination experience. GLIC's consolidated risk-based capital ratio was 300% at year-end 2025, with capital and surplus of $3.6 billion.