Genworth Financial Inc (GNW) 2023 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Genworth Financial's Second Quarter 2023 Earnings Conference Call. My name is Karen, and I will be your coordinator today. (Operator Instructions) As a reminder, the conference is being recorded for replay purposes. (Operator Instructions) I would now like to turn the presentation over to Sarah Crews, Director of Investor Relations. Please go ahead.

早上好，女士們、先生們，歡迎參加 Genworth Financial 2023 年第二季度收益電話會議。我叫凱倫，今天我將擔任你們的協調員。 （操作員說明）謹此提醒，會議正在錄製以供重播之用。 （操作員指示）我現在想將演示文稿交給投資者關係總監 Sarah Crews。請繼續。

Good morning. Welcome to Genworth's Second Quarter 2023 Earnings Call. A slide presentation that accompanies this call is available on the Investor Relations section of the Genworth's website, investor.genworth.com. Our earnings release can also be found there, and we encourage you to review these materials. Our quarterly financial supplement with updated information for prior periods will be made available at a later date.

早上好。歡迎參加 Genworth 2023 年第二季度收益電話會議。 Genworth 網站 Investor.genworth.com 的投資者關係部分提供了本次電話會議附帶的幻燈片演示。我們的收益發布也可以在那裡找到，我們鼓勵您查看這些材料。我們的季度財務補充資料以及前期的更新信息將在稍後發布。

Speaking today will be Tom McInerney, President and Chief Executive Officer, and Jerome Upton, Chief Financial Officer. Following our prepared remarks, we will open the call up for a question-and-answer period. In addition to our speakers, Brian Haendiges, President of our U.S. life insurance business; and Kelly Saltzgaber, Chief Investment Officer, will also be available to take your questions.

總裁兼首席執行官湯姆·麥金納尼 (Tom McInerney) 和首席財務官杰羅姆·厄普頓 (Jerome Upton) 今天將發表講話。在我們準備好的發言之後，我們將開始問答期。除了我們的演講者之外，還有我們美國人壽保險業務總裁 Brian Haendiges；首席投資官 Kelly Saltzgaber 也將隨時回答您的問題。

During the call this morning, 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.

在今天早上的電話會議中，我們可能會做出各種前瞻性陳述。我們的實際結果可能與此類聲明存在重大差異。我們建議您閱讀我們的收益發布和相關演示文稿中有關前瞻性陳述的警示說明，以及我們向 SEC 提交的最新 10-K 表格年度報告中的風險因素。

This morning'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 in accordance with SEC rules. Also, references to statutory results are estimates due to the timing of the filing of the statutory statements. And now I'll turn the call over to our President and CEO, Tom McInerney.

今天上午的討論還包括我們認為可能對投資者有意義的非公認會計準則財務指標。在我們的投資者材料中，根據 SEC 規則的要求，非 GAAP 指標已與 GAAP 指標進行了調整。此外，對法定結果的引用是由於提交法定報表的時間而估計的。現在我將把電話轉給我們的總裁兼首席執行官湯姆·麥金納尼 (Tom McInerney)。

Thank you, Sarah. Good morning, everyone, and thank you for joining our second quarter earnings call. Genworth continued to make progress against our 3 strategic priorities in the second quarter as we navigated a challenging economic environment. Most notably, I'm pleased our Board authorized an additional $350 million in share repurchases, significantly expanding our existing program. Free cash flow to the holding company remains strong, driven by an act return of capital and tax payments in 2023 from an act and the U.S. life insurance companies. We continue to view returns to shareholders as an attractive use of our capital in the current environment and this is reflected in our stock price, which has increased by over 60% as of the market close on Friday, August 4, since announcing our original share repurchase authorization in May of 2022.

謝謝你，莎拉。大家早上好，感謝您參加我們的第二季度財報電話會議。隨著我們應對充滿挑戰的經濟環境，Genworth 在第二季度繼續在我們的 3 個戰略重點方面取得進展。最值得注意的是，我很高興我們的董事會額外批准了 3.5 億美元的股票回購，從而顯著擴大了我們現有的計劃。受法案和美國人壽保險公司 2023 年資本和稅款返還的推動，流向控股公司的自由現金流依然強勁。我們繼續將股東回報視為在當前環境下對我們資本的一種有吸引力的利用，這反映在我們的股價上，自宣布我們的原始股票以來，截至8 月4 日週五收盤，股價已上漲60% 以上2022年5月獲得回購授權。

We have $86 million remaining on the original share repurchase authority, and this new authorization reflects our strong free cash flow and capital structure as well as the Board's ongoing confidence in our strategy and future. We apologize for the delay in releasing Genworth second quarter earnings. Genworth's adopt the new long-duration target improvements or LDTI GAAP accounting guidance in the first quarter this year for our U.S. life insurance businesses. We have since determined that how we account for the 3 long term care insurance or LTC legal settlements under LDTI should be changed.

我們的原始股票回購授權還剩 8600 萬美元，這項新授權反映了我們強大的自由現金流和資本結構，以及董事會對我們的戰略和未來的持續信心。對於延遲發布 Genworth 第二季度收益，我們深表歉意。 Genworth 在今年第一季度對我們的美國人壽保險業務採用了新的長期目標改進或 LDTI GAAP 會計指南。此後，我們決定更改 LDTI 下 3 項長期護理保險或 LTC 法律和解的會計處理方式。

Genworth is now estimating the cost and expenses associated with these settlements similarly to how we estimate the reserve releases from benefit reductions. Any differences between actual experience and our best estimate assumptions will be reported in future quarters.

Genworth 現在正在估算與這些和解相關的成本和費用，類似於我們估算福利削減帶來的準備金釋放的方式。實際經驗與我們的最佳估計假設之間的任何差異將在未來幾個季度報告。

As previously disclosed, the legal settlements are expected to have a net favorable impact to Genworth because of the significant reduction in tail risk. The cumulative economic value and total LTC settlement expenses will not change and will be based on policyholder reduced benefit elections over the implementation of the settlements. However, under the change we are making, Genworth will make initial best estimate assumptions for reduced benefits and expenses under the legal settlements. To the extent actual settlement results differ from best estimates, the differences will be recorded in subsequent quarters until the settlement implementations are completed.

正如之前披露的，由於尾部風險顯著降低，法律和解預計將對 Genworth 產生淨有利影響。累計經濟價值和 LTC 結算費用總額不會改變，並將基於投保人在實施結算時減少福利的選擇。然而，根據我們正在進行的變更，Genworth 將對法律和解規定的福利和費用減少做出初步最佳估計假設。如果實際結算結果與最佳估計存在差異，則差異將記錄在後續季度中，直至結算實施完成。

For the prior 2 settlements, Choice I and PCS I and II, we have updated our financial statements using the same methodology. Jerome will cover the accounting treatment of our LTC legal settlements and in-force rate actions in more detail but it's important to remember that U.S. GAAP accounting is noneconomic and has no impact on cash flows, capital levels, statutory results or how we manage the business.

對於之前的兩次和解，選擇 I 以及 PCS I 和 II，我們使用相同的方法更新了我們的財務報表。 Jerome 將更詳細地介紹我們的LTC 法律和解和有效利率行動的會計處理，但重要的是要記住，美國GAAP 會計是非經濟的，對現金流、資本水平、法定結果或我們管理業務的方式沒有影響。

Turning to the second quarter results. Genworth reported net income of $137 million and adjusted operating income of $85 million or $0.18 per diluted share. Enact again had a very strong quarter with net income of $137 million and adjusted operating income of $146 million. Insurance in-force at the end of the quarter was $258 billion. We are pleased with Enact's continued strong performance. In addition, Enact increased its quarterly dividend payment to $0.16 per share authorized a new share repurchase program of $100 million and increased the total expected capital return in 2023 by $50 million to $300 million.

轉向第二季度業績。 Genworth 報告淨利潤為 1.37 億美元，調整後營業收入為 8500 萬美元，即稀釋後每股收益 0.18 美元。 Enact 再次迎來了非常強勁的季度，淨利潤為 1.37 億美元，調整後營業收入為 1.46 億美元。截至本季度末，有效保險金額為 2,580 億美元。我們對 Enact 持續強勁的表現感到滿意。此外，Enact 將季度股息支付增加至每股 0.16 美元，授權一項 1 億美元的新股票回購計劃，並將 2023 年的預期資本回報總額增加 5000 萬美元，達到 3 億美元。

Genworth received $54 million of capital returns from Enact in the second quarter. Since Enact's IPO, Genworth has received approximately $465 million in capital returns from Enact, enabling us to fund our strategic initiatives, including share repurchases. We expect our 81.6% ownership of Enact to remain the primary source of free cash flow moving forward.

Genworth 第二季度從 Enact 獲得了 5400 萬美元的資本回報。自 Enact 首次公開募股以來，Genworth 已從 Enact 獲得約 4.65 億美元的資本回報，使我們能夠為包括股票回購在內的戰略舉措提供資金。我們預計我們對 Enact 81.6% 的所有權仍將是未來自由現金流的主要來源。

Our LTC business reported an adjusted operating loss of $43 million in the second quarter, primarily driven by a liability remeasurement loss of $61 million from higher new claims as the LTC blocks age and seasonally lower claim terminations. The estimated LTC statutory pretax loss was $70 million primarily driven by higher new claims, given the aging of the block and seasonally lower claim terminations, partially offset by a net benefit related to the PCS I and II settlement.

我們的 LTC 業務第二季度調整後運營虧損為 4,300 萬美元，主要是由於 LTC 區塊老化和季節性較低的索賠終止導致新索賠增加，導致負債重新計量損失 6,100 萬美元。 LTC 法定稅前損失估計為 7000 萬美元，主要是由於新索賠增加（考慮到該區塊的老化和索賠終止的季節性下降），部分被與 PCS I 和 II 和解相關的淨收益所抵消。

Total pretax statutory income for the U.S. life insurance companies is estimated to be $63 million in the second quarter. Life insurance pretax statutory income is estimated at $26 million, driven by lower mortality and annuities pretax statutory income is estimated to be $107 million, primarily driven by variable annuities as a result of favorable equity markets and higher interest rates. Life and annuity statutory income and noncore statutory income in the second quarter more than offset the LTC statutory loss in the quarter.

美國人壽保險公司第二季度稅前法定總收入預計為 6300 萬美元。人壽保險稅前法定收入估計為2600 萬美元，主要是由於較低的死亡率和年金稅前法定收入估計為1.07 億美元，主要是由於有利的股票市場和較高的利率而產生的可變年金。第二季度的人壽和年金法定收入以及非核心法定收入足以抵消本季度的長期保險法定虧損。

We have pointed out over the last several quarters that investors should evaluate LTC results under both U.S. GAAP and U.S. statutory accounting to have a more complete understanding of LTC results. As Jerome will explain in more detail, LDTI treats unprofitable cap cohorts differently than profitable uncapped cohorts. LDTI requires us to remeasure LTC liabilities each quarter and compare actual performance against best estimate assumptions.

我們在過去幾個季度中指出，投資者應該根據美國公認會計準則和美國法定會計準則評估LTC的業績，以便更全面地了解LTC的業績。正如杰羅姆（Jerome）將更詳細地解釋的那樣，LDTI 對待無盈利的上限群體與盈利的無上限群體的方式不同。 LDTI 要求我們每個季度重新衡量長期TC 負債，並將實際業績與最佳估計假設進行比較。

And unprofitable cap LTC cohorts, for example, a true-up for actual to expected reserve releases for benefit reduction differences in a settlement impacting these cohorts will impact the P&L that quarter. For profitable uncapped LTC cohorts our liability remeasurement or other differences from best estimate assumptions primarily impacts the net premium ratio, reducing the quarterly P&L impact compared to the same impact on unprofitable cap cohorts. Under statutory accounting and similar to pre-LDTI GAAP accounting, all LTC cohorts are treated similarly and results for cap and uncapped cohorts can offset each other during the quarter. Therefore, because of the disparate treatment between statutory and GAAP regarding cap and uncapped cohorts, quarterly LTC statutory results should generally be less volatile than U.S. GAAP results under LDTI.

例如，無盈利上限的 LTC 群體，在影響這些群體的和解中，因福利減少差異而實際釋放的準備金與預期準備金的調整將影響該季度的損益。對於盈利的無上限 LTC 群體，我們的負債重新計量或與最佳估計假設的其他差異主要影響淨保費率，與對無盈利上限群體的相同影響相比，減少了季度損益的影響。根據法定會計製度，與 LDTI 之前的 GAAP 會計製度類似，所有 LTC 群組都受到類似的處理，上限和無上限群組的結果可以在本季度相互抵消。因此，由於法定和 GAAP 在上限和無上限隊列方面的處理方式不同，季度 LTC 法定結果通常應比 LDTI 下的美國 GAAP 結果波動更小。

As we've said before, the U.S. GAAP results for Genworth LTC and life and annuities businesses do not have any impact on free cash flow to the holding company. Free cash flow to the holding company is primarily driven by Enact's excess cash and to a lesser extent, by future tax payments from Enact and U.S. LI if the holding company has tax credits available. Statutory earnings are similar to tax earnings and taxes paid to the holding company can be significantly different than the U.S. GAAP tax rate. Complete statutory results for our U.S. life insurance companies will be available when we file our quarterly statutory statements later this month.

正如我們之前所說，Genworth LTC 以及人壽和年金業務的美國公認會計原則結果不會對控股公司的自由現金流產生任何影響。流向控股公司的自由現金流主要由 Enact 的過剩現金驅動，並且在較小程度上由 Enact 和 U.S. LI 未來繳納的稅款（如果控股公司有稅收抵免）驅動。法定收益與稅收收益類似，並且向控股公司支付的稅款可能與美國公認會計準則稅率有很大不同。當我們在本月晚些時候提交季度法定報表時，我們將獲得美國人壽保險公司的完整法定結果。

Also in the quarter, we received confirmation of trial date and access case against Santander regarding payment protection insurance and the selling case is set for March 2025. As a reminder to investors, Genworth is not a party to the case, but if AXA is successful in pursuing its claims, we will share in recoveries AXA receives from Santander. We continue to monitor the proceedings closely, and we'll update investors on any material developments.

同樣在本季度，我們收到了針對桑坦德銀行有關付款保護保險的審判日期和准入案件的確認，出售案件定於2025 年3 月。謹提醒投資者，Genworth 不是該案件的當事人，但如果AXA 勝訴在追求其索賠的過程中，我們將分享 AXA 從桑坦德銀行收到的追償款項。我們將繼續密切關注整個進程，並將向投資者通報任何重大進展。

Turning to our 3 strategic priorities. We continue to improve the financial condition of our legacy LTC business, primarily through our multiyear rate action plan or MYRAP the most effective tool we have to bring our legacy LTC insurance portfolio to economic breakeven on a go-forward basis. We achieved a total of $94 million of gross incremental premium approved in the second quarter building upon $50 million of premium approved in the first quarter. This brings our cumulative progress to approximately $24.4 billion in approvals on a net present value basis since 2012. We are very pleased with our progress in the first half of the year and now expect our total gross and incremental premium improved for the full year to be approximately $275 million this year, up from previous expectations of $250 million.

轉向我們的 3 個戰略重點。我們主要通過多年費率行動計劃或 MYRAP 繼續改善我們傳統 LTC 業務的財務狀況，MYRAP 是我們使我們傳統 LTC 保險組合在未來實現經濟盈虧平衡的最有效工具。在第一季度批准的保費 5,000 萬美元的基礎上，我們在第二季度批准的保費增量總額達到了 9,400 萬美元。這使我們自 2012 年以來以淨現值計算的累計批准進度達到約 244 億美元。我們對今年上半年的進展感到非常滿意，現在預計我們全年的總保費和增量保費將改善今年約為2.75 億美元，高於之前預期的2.5 億美元。

I also want to mention the report issued by the New York State Department of Financial Services in early June on the long term care insurance market. The report includes important commentary on the overall state of the LTC industry acknowledges the need for LTC premium rate action approvals on New York LTC policies and provides a balanced view of a way forward in sustaining this important insurance market. We appreciate the continued partnership with insurance regulators on efforts to stabilize the LTC industry through premium rate increase approvals and to ensure long-term policyholder commitments are able to be honored.

我還想提一下紐約州金融服務部6月初發布的關於長期護理保險市場的報告。該報告包括對長期保險行業整體狀況的重要評論，承認需要批准紐約長期保險保單的長期保險費率行動，並就維持這一重要保險市場的前進方向提供了平衡的觀點。我們讚賞與保險監管機構的持續合作，通過批准保費上調來穩定長期保險行業，並確保長期保單持有人的承諾能夠得到兌現。

Turning to the next strategic priority. We continue to leverage Genworth's substantial LTC expertise to develop innovative aging care services and solutions and a new CareScout services business. We continue to execute on our growth initiatives around CareScout services to meet the large and growing demand for senior care that is not adequately addressed in the market today.

轉向下一個戰略重點。我們繼續利用 Genworth 豐富的 LTC 專業知識來開發創新的老年護理服務和解決方案以及新的 CareScout 服務業務。我們繼續圍繞 CareScout 服務執行增長計劃，以滿足當今市場上尚未得到充分滿足的老年護理的巨大且不斷增長的需求。

We have planned for several phases of new services and products over the next several years. Our first phase includes the build-out of our CareScout quality network of senior care providers with an initial launch in Texas. Texas is a large LTC insurance market, and Genworth has approximately 43,000 policyholders there. We are pleased to say that we have CareScout quality network coverage for approximately 50% of the age 65 plus Texas population with providers that have met our quality credentialing standards and agreed to negotiate discounted rates. We are in discussions with dozens of other home care providers in the state to join the CareScout quality network and have strong momentum to expand the network throughout Texas and nationwide.

我們計劃在未來幾年內推出幾個階段的新服務和產品。我們的第一階段包括建立 CareScout 高級護理提供者優質網絡，並在德克薩斯州首次啟動。德克薩斯州是一個大型長期護理保險市場，Genworth 在那裡擁有大約 43,000 名保單持有人。我們很高興地說，我們的 CareScout 優質網絡覆蓋了德克薩斯州 65 歲以上人口中約 50% 的人口，其提供商符合我們的質量認證標準並同意協商折扣費率。我們正在與該州數十家其他家庭護理提供商討論加入 CareScout 質量網絡，並有強勁的動力將網絡擴展到德克薩斯州和全國。

Two other large LTC markets, Arizona and Florida are likely to be included in CareScout's next areas of focus. We are very pleased that each of these providers understand CareScout's services value proposition around patient-centered quality care and the potential access to Genworth's 1 million policyholders as well as potential access to other insurers LTC policyholders. At the same time, we made significant progress in developing our new digital technology platform. This platform will facilitate timely matches of Genworth policyholders and new CareScout customers with quality care providers in our network.

另外兩個大型長期護理市場，亞利桑那州和佛羅里達州，可能會成為 CareScout 下一個重點關注的領域。我們非常高興這些提供商都了解 CareScout 圍繞以患者為中心的優質護理的服務價值主張，以及接觸 Genworth 100 萬保單持有人的潛在機會以及接觸其他保險公司 LTC 保單持有人的潛在機會。與此同時，我們在開發新的數字技術平台方面取得了重大進展。該平台將促進 Genworth 保單持有人和新 CareScout 客戶與我們網絡中的優質護理提供商進行及時匹配。

With the discounted rates negotiated, Genworth policyholders will be able to extend their available benefits and Genworth will realize claims savings over time, driving further risk mitigation for the legacy LTC block. As we build out our CareScout services business, we will continue to leverage existing relationships with thousands of care providers, experience from processing over 360,000 LTC claims significant proprietary claim data gathered from LTC policyholders over 4 decades and the strong team we have (inaudible) these efforts.

通過協商的折扣費率，Genworth 保單持有人將能夠延長其可用福利，並且隨著時間的推移，Genworth 將實現索賠節省，從而進一步緩解傳統 LTC 區塊的風險。在我們建立CareScout 服務業務時，我們將繼續利用與數千家護理提供者的現有關係、處理超過360,000 份LTC 索賠的經驗、4 年來從LTC 保單持有人收集的重要專有索賠數據以及我們擁有的強大團隊（聽不清）這些努力。

Over time, with national coverage in the CareScout quality network, we will expand our customer base beyond Genworth policyholders to include other LTC insurance carriers policyholders and then eventually go direct to consumers.

隨著時間的推移，隨著 CareScout 質量網絡覆蓋全國，我們將把我們的客戶群擴展到 Genworth 保單持有人之外，包括其他 LTC 保險公司的保單持有人，然後最終直接面向消費者。

Moving on to our third strategic priority. We significantly increased the pace of share repurchases in the second quarter. We repurchased $112 million worth of shares at an average price of $5.45 per share and repurchased another $20 million in the month of July. This brings the cumulative total to approximately $264 million worth of shares repurchased since the program's inception in May 2022. Including the expansion of the program we announced on July 31, we now have approximately $436 million of outstanding repurchase authority.

繼續我們的第三個戰略重點。第二季度我們大幅加快了股票回購的步伐。我們以每股 5.45 美元的平均價格回購了價值 1.12 億美元的股票，並在 7 月份又回購了 2000 萬美元。這使得自 2022 年 5 月該計劃啟動以來累計回購的股票總額達到約 2.64 億美元。包括我們 7 月 31 日宣布的計劃擴展在內，我們現在擁有約 4.36 億美元的未償還回購權。

We continue to allocate excess cash from Enact to drive Genworth's long-term shareholder value. Cash flows from Enact have fueled our share repurchase program and enabled us to invest in our long-term growth strategy in CareScout. When we think about capital allocation, it is important to remember our commitment to managing the U.S. life insurance companies on a stand-alone basis. They operate as a closed system, leveraging existing reserves and capital earned premiums as well as future new premiums under the LTC multiyear rate action plan to cover liabilities. We have no plans to put additional capital into the U.S. life insurance companies. And given the long tail of our long term care insurance policies with peak claim years still over a decade away, we also do not expect to extract capital from the U.S. Life Companies.

我們繼續從 Enact 分配多餘現金，以推動 Genworth 的長期股東價值。 Enact 的現金流推動了我們的股票回購計劃，並使我們能夠投資於 CareScout 的長期增長戰略。當我們考慮資本配置時，重要的是要記住我們對獨立管理美國人壽保險公司的承諾。它們作為一個封閉的系統運作，利用現有準備金和資本賺取保費以及 LTC 多年利率行動計劃下的未來新保費來彌補負債。我們沒有計劃向美國人壽保險公司追加資本。考慮到我們的長期護理保險保單的長尾特徵，距離索賠高峰期還有十多年，我們也不期望從美國人壽公司提取資金。

While we believe there is tremendous value in the intellectual property, data and experience we've amassed from the LTC business, our view of Genworth's enterprise value and future potential are rooted in our 81.6% ownership stake in Enact and our plans to develop CareScout into a comprehensive set of products and services to address the complex challenges of aging and senior care.

雖然我們相信我們從 LTC 業務中積累的知識產權、數據和經驗具有巨大價值，但我們對 Genworth 企業價值和未來潛力的看法植根於我們持有 Enact 81.6% 的股權以及我們將 CareScout 發展為一套全面的產品和服務，旨在解決老齡化和老年護理的複雜挑戰。

In closing, I am very pleased with Enact's performance and our strong execution against our 3 strategic priorities during the first half of the year. We are working from a significantly improved financial foundation with a high-quality holding company balance sheet and strong free cash flow, primarily from Enact.

最後，我對 Enact 的表現以及我們在今年上半年對 3 個戰略重點的強有力執行感到非常滿意。我們的財務基礎顯著改善，擁有高質量的控股公司資產負債表和強勁的自由現金流（主要來自 Enact）。

With that, I'll turn the call over to Jerome.

這樣，我就把電話轉給杰羅姆。

Thank you, Tom, and good morning, everyone. Today, I will highlight our financial performance and key drivers by segment as well as provide an update on our strong liquidity and capital positions. We are pleased with the progress on our multiyear rate action plan, strong cash position at the holding company and the value generated for shareholders through our share buyback program.

謝謝你，湯姆，大家早上好。今天，我將重點介紹我們的財務業績和各細分市場的關鍵驅動因素，並提供有關我們強勁的流動性和資本狀況的最新信息。我們對多年利率行動計劃的進展、控股公司強勁的現金狀況以及通過股票回購計劃為股東創造的價值感到高興。

For the quarter, we reported $137 million of net income or $0.29 per diluted share and $85 million of adjusted operating income or $0.18 per diluted share. Results were driven by Enact's very strong performance of $146 million in adjusted operating income to Genworth driven by favorable (inaudible) performance. While our GAAP results were impacted by LTC losses, it is important to note that LTC's GAAP performance does not alter Genworth's economics or cash flows. We view the U.S. life insurance companies as having no impact on our enterprise value, and we expect shareholder value to continue to be driven by Enact's strong performance and our investments in future growth through CareScout.

本季度，我們報告淨利潤為 1.37 億美元，即稀釋後每股收益 0.29 美元，調整後營業收入為 8500 萬美元，即稀釋後每股收益 0.18 美元。業績的推動因素是 Enact 的強勁表現，Genworth 的調整後營業收入為 1.46 億美元，而良好的（聽不清）業績也推動了這一結果。雖然我們的 GAAP 業績受到 LTC 虧損的影響，但值得注意的是，LTC 的 GAAP 業績不會改變 Genworth 的經濟或現金流。我們認為美國人壽保險公司對我們的企業價值沒有影響，我們預計股東價值將繼續受到 Enact 的強勁業績以及我們通過 CareScout 對未來增長的投資的推動。

Before I review results, I would like to supplement Tom's comments regarding the change we have made to our accounting related to the unique LTC legal settlements. Under LDTI, there is no specific guidance for these unusual legal settlements or how to treat cash payments to policyholders in connection with these legal settlements, known as settlement payments. The accounting change we made for GAAP does not alter the favorable economics of our legal settlements to LTC, it simply impacts the timing and classification of our recognition of the settlement payments. We made this change to align estimates of settlement payments to policyholders with the related estimates of policyholder benefit reductions to ensure that both are recorded in the same financial reporting period.

在審查結果之前，我想補充一下 Tom 關於我們對與獨特的 LTC 法律和解相關的會計變更的評論。根據 LDTI，對於這些不尋常的法律和解或如何處理與這些法律和解相關的向投保人支付的現金（稱為和解付款）沒有具體指導。我們對 GAAP 所做的會計變更不會改變我們與 LTC 的法律和解的有利經濟效益，它只會影響我們確認和解付款的時間和分類。我們做出這一改變是為了將保單持有人的結算付款估算與保單持有人福利減少的相關估算保持一致，以確保兩者記錄在同一財務報告期間。

Prior periods for LTC GAAP results have been adjusted for this change. There are no changes to statutory accounting for these settlements.

LTC GAAP 前期業績已針對這一變化進行了調整。這些和解的法定會計沒有變化。

Now turning to Enact's results on Slide 6. Primary insurance in-force increased 9% year-over-year to $258 billion, driven by new insurance written and continued elevated persistency. Enact is well positioned to continue to drive growth with a well-performing portfolio and strong capital position and will continue to create long-term shareholder value.

現在轉向幻燈片 6 上的 Enact 結果。受新承保保險和持續性持續提高的推動，有效的主要保險同比增長 9%，達到 2,580 億美元。 Enact 處於有利位置，能夠憑藉業績良好的投資組合和強大的資本狀況繼續推動增長，並將繼續創造長期股東價值。

Slide 7, shows Enact had a favorable $63 million reserve release which drove a loss ratio of negative 2%. The reserve release primarily reflects favorable cures on 2020 through first half 2022 delinquencies, including COVID-19-related delinquencies. Both Enact's prior quarter and prior year results included favorable reserve releases as well, $70 million and $96 million, respectively, primarily from cures on COVID-19 delinquencies. Enact's estimated PMIER sufficiency ratio remains strong at 162% or approximately $2 billion above PMIERs requirements.

幻燈片 7 顯示，Enact 釋放了 6300 萬美元的有利準備金，導致損失率達到負 2%。儲備金釋放主要反映了對 2020 年至 2022 年上半年拖欠款項的有利補救措施，包括與 COVID-19 相關的拖欠款項。 Enact 上一季度和上一年的業績都包括有利的準備金釋放，分別為 7000 萬美元和 9600 萬美元，主要來自對 COVID-19 拖欠的治療。 Enact 預計 PMIER 充足率仍高達 162%，即比 PMIER 要求高出約 20 億美元。

As a result of its continued strong performance and confidence in its outlook, Enact increased its quarterly dividend payment last quarter from $0.14 to $0.16 per share, which generated proceeds of $21 million to Genworth in June. Enact now expects to return $300 million of capital to its shareholders this year and authorized a new share repurchase program of $100 million. Based on our 81.6% ownership of Enact, we anticipate receiving approximately $245 million for the full year through a combination of its quarterly dividends, share repurchase program and a special dividend.

由於持續強勁的業績和對前景的信心，Enact 將上季度的季度股息從每股 0.14 美元增加到 0.16 美元，6 月份為 Genworth 帶來了 2100 萬美元的收益。 Enact 目前預計今年將向股東返還 3 億美元的資本，並授權一項 1 億美元的新股票回購計劃。基於我們對 Enact 81.6% 的所有權，我們預計通過季度股息、股票回購計劃和特別股息，全年將獲得約 2.45 億美元的收入。

Year-to-date, through the end of July, we have received $96 million in capital returns from Enact. Going forward, returns of capital from Enact will continue to enable Genworth to generate excess cash flow for capital deployment.

今年迄今為止，截至 7 月底，我們已從 Enact 獲得了 9600 萬美元的資本回報。展望未來，Enact 的資本回報將繼續使 Genworth 能夠產生多餘的現金流用於資本部署。

Turning to long term care insurance. Slide 8, highlights our strategic focus for LTC and the progress on our multiyear rate action plan to protect our claims paying ability and build resiliency for the U.S. life insurance companies to be managed on a stand-alone basis. We have a very successful track record of working with state insurance regulators to achieve premium rate increases as demonstrated over the last 11 years.

轉向長期護理保險。第 8 張幻燈片強調了我們對 LTC 的戰略重點以及我們多年費率行動計劃的進展，以保護我們的索賠支付能力並為美國人壽保險公司建立獨立管理的彈性。正如過去 11 年所證明的那樣，我們在與州保險監管機構合作實現保費上漲方面擁有非常成功的記錄。

Through the second quarter, we have achieved in-force rate actions of $24.4 billion on a net present value basis since 2012. We feel confident in our continued ability to execute on the multiyear rate action plan and favorable reduced benefit impacts from recent legal settlements have accelerated this progress and further reduced the tail risk on the block. To date, we've seen a policyholder response rate of 47.5% to reduce benefits, which significantly reduces risk on these policies as the block ages and new claim counts continue to increase.

自2012 年以來，到第二季度，我們已經實現了按淨現值計算的244 億美元的有效利率行動。我們對我們繼續執行多年利率行動計劃的能力充滿信心，並且最近的法律和解所帶來的有利減少的福利影響已經加速了這一進程，並進一步降低了區塊的尾部風險。迄今為止，我們看到保單持有人對減少福利的響應率為 47.5%，隨著封鎖期限和新索賠數量的持續增加，這顯著降低了這些保單的風險。

Long term care insurance GAAP results are covered on Slides 5, 9 and 10. As we mentioned, we are focused on cash flows in achieving economic breakeven for LTC. Under LDTI accounting, we expect ongoing volatility in our LTC quarterly GAAP results as we remeasure our actual experience versus our best estimate assumptions which are now recorded at a granular policy cohort level. However, these results do not impact our cash flows, economic value or change how we're managing the business.

幻燈片 5、9 和 10 涵蓋了長期護理保險 GAAP 結果。正如我們提到的，我們專注於現金流以實現 LTC 的經濟盈虧平衡。根據 LDTI 會計，我們預計 LTC 季度 GAAP 結果將持續波動，因為我們重新衡量我們的實際經驗與目前記錄在細粒度政策群體水平的最佳估計假設。然而，這些結果不會影響我們的現金流、經濟價值或改變我們管理業務的方式。

As shown on Slide 5, our LTC segment reported an adjusted operating loss of $43 million for the second quarter compared to adjusted operating income of $23 million in the prior quarter and adjusted operating income of $17 million in the prior year.

如幻燈片 5 所示，我們的 LTC 部門第二季度調整後營業虧損為 4300 萬美元，而上一季度調整後營業收入為 2300 萬美元，上年調整後營業收入為 1700 萬美元。

Turning to Slide 9. The second quarter loss was primarily due to a liability remeasurement loss of $61 million, principally on our unprofitable or cap cohorts. The liability remeasurement loss was driven by an $85 million difference in our actual to expected experience from lower terminations and higher claims, partially offset by a favorable $24 million cash flow assumption update related to the timing and amount of anticipated in-force rate actions.

轉向幻燈片 9。第二季度虧損主要是由於 6100 萬美元的負債重新計量虧損，主要是我們無利可圖或上限的群體。負債重新計量損失是由於我們的實際經驗與預期經驗之間的8500 萬美元差異（由於終止次數減少和索賠增加）造成的，部分被與預期有效費率行動的時間和金額相關的有利的2400 萬美元現金流假設更新所抵消。

Referring to Slides 9 and 10, the LTC liability remeasurement under GAAP accounting is relative to our $41.6 billion liability for future policy benefits. Quarterly actual to expected variations on such a large reserve balance and appear to have a significant impact, but do not change cash flows, the long-term economics or reserve adequacy of the LTC business. Going forward, quarterly volatility on the GAAP income statement will be driven by 2 primary factors.

參考幻燈片 9 和 10，按照 GAAP 會計準則重新衡量 LTC 負債是相對於我們未來保單福利的 416 億美元負債而言的。季度實際與預期的變化對如此大的準備金餘額似乎產生了重大影響，但不會改變現金流、長期經濟或長期TC業務的準備金充足性。展望未來，公認會計準則損益表的季度波動將由兩個主要因素驅動。

First, as noted on Slide 10, under LDTI accounting, we are now required to remeasure the liability at a more granular cohort level based on policy issue year. Amongst the policy year cohorts, our LTC book is generally split evenly between cap cohorts, which are unprofitable blocks and have a net premium ratio capped at 100% and uncapped cohorts, which are the profitable blocks with positive margins and net premium ratios below 100%. The policyholders and the profitable uncapped cohorts are generally younger, still over a decade or more away from their peak claim years, and we have more premium runway on those policies with our multiyear rate action plan. In contrast, the cap cohorts are our older unprofitable blocks with higher claims and much shorter premium runways.

首先，如幻燈片 10 所示，根據 LDTI 會計，我們現在需要根據保單簽發年份在更細粒度的群組級別重新衡量負債。在保單年度組中，我們的LTC賬簿通常在上限組和無上限組之間平均分配，上限組是無利可圖的組，其淨保費率上限為100%，而無上限組是利潤率為正且淨保費率低於100%的盈利組。 。保單持有人和盈利的無上限群體一般都比較年輕，距離索賠高峰期還有十多年甚至更長的時間，而且我們通過多年費率行動計劃為這些保單提供了更多的保費跑道。相比之下，上限群體是我們較老的無利可圖的區塊，索賠率較高，保費跑道較短。

Prior to the implementation of LDTI accounting, we did not have this cohorting concept. We would review the block in total, so profitable and unprofitable policies were considered together, resulting in positive margin in the aggregate. Now, however, under LDTI, because the CAP policy cohorts have no margin, the actual to expected experience will be recognized immediately and hit the bottom line. While the profitable uncapped cohorts have margin, their earnings impact, when we evaluate actions to expected experience will be more modest because their margin absorbs experience variations with a recalculation of the net premium ratio. For us, this new LDTI cohorting requirement is a significant change in the accounting, given the dynamics of our legacy LTC block.

在實施LDTI核算之前，我們沒有這種分組的概念。我們會對該區塊進行整體審查，因此盈利和虧損的政策會被一起考慮，從而產生總體上的正利潤率。然而現在，在 LDTI 下，由於 CAP 政策群體沒有餘地，實際的預期經驗將立即得到認可並觸及底線。雖然盈利的無上限群體有利潤，但當我們評估預期經驗的行動時，他們的盈利影響將更加溫和，因為他們的利潤通過重新計算淨保費率吸收了經驗變化。對我們來說，鑑於我們傳統 LTC 區塊的動態，這一新的 LDTI 分組要求是會計方面的重大變化。

The second reason we expect increased volatility in our LTC GAAP results going forward is from the disparate impact of in-force rate actions and legal settlements on the different cohorts under LDTI accounting. Reserves are under best estimate assumptions updated leased annually in the fourth quarter and now include an estimate for benefit reductions from in-force rate actions and settlements, including an estimate for settlement payments. The reserve releases from policyholder reduced benefit elections and settlement payments will impact the income statement on a quarterly basis to the extent that actual experience differs from assumptions, and it will be more pronounced for our unprofitable capped cohorts.

我們預計 LTC GAAP 業績波動性增加的第二個原因是，有效利率行動和法律和解對 LDTI 會計下不同群體的不同影響。儲備金是根據第四季度每年更新的最佳估計假設得出的，現在包括對有效利率行動和和解帶來的福利減少的估計，包括對和解付款的估計。保單持有人減少福利選擇和和解支付而釋放的準備金將影響季度利潤表，實際情況與假設存在差異，對於我們不盈利的上限群體來說，這種影響將更加明顯。

Previously, under old GAAP reserve releases and settlement payments were recorded to the income statement as policyholders made reduced benefit elections similar to statutory. This is a fundamental change between old GAAP accounting and new LDTI cap accounting. While the reserving methodology has changed, there was no change to how the company accounts for premiums related to in-force rate actions. When looking at the impacts from in-force rate actions on a GAAP basis, an investor will not get the full picture of the favorable economics of the in-force rate actions and settlements because the benefit reductions are included in best estimate assumptions.

此前，根據舊的公認會計準則，準備金釋放和和解付款被記錄到損益表中，因為保單持有人做出了與法定類似的減少福利選擇。這是舊 GAAP 會計和新 LDTI 上限會計之間的根本性變化。雖然準備金方法發生了變化，但公司對與有效利率行動相關的保費的會計處理方式沒有變化。當根據公認會計原則考慮生效利率行動的影響時，投資者將無法全面了解生效利率行動和和解的有利經濟效益，因為福利減少包含在最佳估計假設中。

In the fourth quarter of 2022, there was a material liability remeasurement gain for LTC, which reflected a favorable cash flow assumption update of approximately $300 million, largely from an update to our best estimate reserve assumptions for the inclusion of our second legal settlement, which impacted our PCS I and II policies. The approximate $300 million gain is now inclusive of our estimate for PCS I and II settlement payments of approximately $200 million based on the accounting change we highlighted, whereas previously, the settlement payments were recorded over time as incurred.

2022 年第四季度，LTC 出現了重大負債重新計量收益，這反映了約3 億美元的有利現金流假設更新，這主要來自我們為納入第二次法律和解而更新的最佳估計準備金假設，其中影響了我們的 PCS I 和 II 政策。大約 3 億美元的收益現在包括我們根據我們強調的會計變更對 PCS I 和 II 和解付款的估計，即約 2 億美元，而之前，和解付款是在發生時隨時間記錄的。

As we've discussed, the PCS I and II settlement represents approximately 15% of the overall LTC block and impacts older, unprofitable, principally cap cohorts, which is one of the expected net reserve reduction impacted the liability remeasurement line and the income statement.

正如我們所討論的，PCS I 和II 和解約佔整個LTC 區塊的15%，並影響較舊的、無利可圖的、主要是上限的群體，這是影響負債重新計量線和損益表的預期淨準備金減少之一。

As we look ahead, we will be updating our best estimate assumptions later this year for the third legal settlement on our Choice II policies. Choice II is one of our newer blocks with policies written between 2003 and 2011. It accounts for over 35% of our total LTC policies and approximately 90% of the block currently contains profitable uncapped cohorts with margin. The LDTI accounting impact for the Choice II settlement will be very different than the impact we saw for the PCS I and II settlements because the Choice II block is mostly uncapped while PCS I and II blocks were predominantly capped.

展望未來，我們將在今年晚些時候針對我們的選擇 II 保單的第三次法律解決方案更新我們的最佳估計假設。選擇II 是我們較新的保單之一，其保單于2003 年至2011 年之間制定。它占我們的長期護理保單總數的35% 以上，並且該保單中約90% 目前包含盈利的無上限保單和保證金。 Choice II 和解的 LDTI 會計影響將與我們看到的 PCS I 和 II 和解的影響有很大不同，因為 Choice II 區塊大部分沒有上限，而 PCS I 和 II 區塊主要有上限。

Therefore, while we expect the Choice II settlement to result in a significant reduction in Genworth's LTC tail risk and to be a net positive for Genworth over the long term. We expect a very small income statement impact when we update our GAAP assumptions for the Choice II settlement. The benefit to Genworth will depend on the rate at which policyholders elect to reduce benefits. And since these cohorts are mostly uncapped, the majority of the impact will be realized over the lifetime of the cohorts.

因此，我們預計 Choice II 和解將導致 Genworth 的 LTC 尾部風險顯著降低，並從長遠來看對 Genworth 產生淨積極影響。當我們更新選擇 II 和解的 GAAP 假設時，我們預計對損益表的影響非常小。 Genworth 的收益將取決於保單持有人選擇減少收益的比率。由於這些群體大多沒有上限，因此大部分影響將在群體的生命週期內實現。

For these reasons, we encourage investors to review our statutory results, which we believe better represent the underlying performance of the U.S. life insurance companies and particularly LTC.

出於這些原因，我們鼓勵投資者審查我們的法定業績，我們認為這些業績更能代表美國人壽保險公司，尤其是 LTC 的基本業績。

As shown on Slide 11, LTC statutory pretax earnings of $67 million for the first half of the year are down significantly from the $265 million in the first half of 2022, driven by a second quarter estimated loss of $71 million from seasonally lower terminations and higher claims partially offset by continued favorable premium increases and benefit reductions from in-force rate actions, including from the PCS I and II legal settlement. Statutory results provide more visibility into the positive economic impact the in-force rate actions and legal settlements have on our business. As a reminder, we had a number of favorable impacts in the prior quarter and prior year that did not reoccur at the same level.

如幻燈片11 所示，LTC 上半年法定稅前收益為6700 萬美元，較2022 年上半年的2.65 億美元大幅下降，原因是第二季度因季節性終止合同數量減少和合同終止數量增加而估計損失7100 萬美元。索賠額被持續有利的保費上漲和有效費率訴訟（包括 PCS I 和 II 法律和解）帶來的福利減少所部分抵消。法定結果使我們能夠更清楚地了解有效的費率訴訟和法律和解對我們業務的積極經濟影響。提醒一下，我們在上一季度和上一年產生了許多有利影響，但這些影響並未以同一水平再次發生。

Last quarter, we saw seasonally high LTC claim terminations and second quarter terminations were lower as expected, in line with pre-pandemic seasonal trends. In the second quarter of 2022, we had higher terminations, likely some continued impacts from COVID and higher variable investment income. As the implementation of Choice II legal settlement ramps up in the second half of the year, we expect it to have positive impacts on our LTC statutory results.

上個季度，我們看到長期護理索賠終止數量呈季節性高位，而第二季度的終止索賠數量則低於預期，與大流行前的季節性趨勢一致。 2022 年第二季度，我們的終止合同數量有所增加，這可能是新冠疫情和可變投資收入增加帶來的持續影響。隨著下半年選擇 II 法律和解的實施力度加大，我們預計它將對我們的 LTC 法定業績產生積極影響。

Slide 12 illustrates the trend we've been seeing that paid claims continue to increase as the blocks age and will continue to do so as peak claim years on our largest Choice II block are over a decade away. The average age on our Choice II block is 73 as shown on Slide 21. Peak claims years occur when attained age is in the mid-80s. The average attained age for the 2 smallest and oldest blocks, pre-PCS and PCS I are 89 and 87, respectively. Claims on those blocks will decrease but will be more than offset by increasing claims on our Choice I and Choice II blocks, which represent 58% of total LTC in-force lives.

幻燈片12 說明了我們所看到的趨勢，即隨著區塊的老化，付費索賠繼續增加，並且隨著我們最大的Choice II 區塊的索賠高峰年還有十多年，這種趨勢還將繼續增加。如幻燈片 21 所示，我們的選擇 II 組的平均年齡為 73 歲。索賠高峰期出現在 80 多歲中期。 2 個最小和最古老的區塊（PCS 之前和 PCS I）的平均年齡分別為 89 歲和 87 歲。這些區塊的索賠將會減少，但會被我們的 Choice I 和 Choice II 區塊的索賠增加所抵消，這兩個區塊佔 LTC 有效壽命總數的 58%。

We saw reduced claims growth in 2020 through 2022 driven by the COVID-19 pandemic as terminations were high for both healthy and disabled lives and people appear to have delayed seeking care and going on claim. We will continue to monitor new claims growth and we have considered this trend and our plans to bring the LTC block to breakeven. To that end, we made further progress on our multiyear rate action plan this quarter, achieving $94 million of gross premium approvals as shown on Slide 13. As I mentioned, our cumulative net present value of achieved in-force rate actions is now $24.4 billion, up $600 million from $23.8 billion at the end of the first quarter of 2023.

我們看到，在 COVID-19 大流行的推動下，2020 年至 2022 年的索賠增長有所減少，因為健康人和殘疾人的終止妊娠率都很高，而且人們似乎推遲了尋求護理和索賠。我們將繼續監控新索賠的增長，我們已經考慮了這一趨勢以及我們使 LTC 區塊實現盈虧平衡的計劃。為此，我們本季度在多年費率行動計劃方面取得了進一步進展，批准了9400 萬美元的毛保費，如幻燈片13 所示。正如我提到的，我們已實現的有效費率行動的累計淨現值現已達到244 億美元，較 2023 年第一季度末的 238 億美元增加 6 億美元。

In addition to the multiyear rate action plan, the LTC legal settlements have been greatly beneficial to both Genworth and our policyholders. For policyholders, many have elected to reduce their benefits while maintaining meaningful coverage and, in turn, reduce or eliminate their premiums. For Genworth, benefit reductions allow us to release reserves and reduce our tail risk on these policies.

除了多年費率行動計劃外，LTC 法律和解對 Genworth 和我們的保單持有人都大有裨益。對於保單持有人來說，許多人選擇減少他們的福利，同時保持有意義的保險範圍，從而減少或取消他們的保費。對於 Genworth 來說，福利減少使我們能夠釋放準備金並降低這些保單的尾部風險。

Slide 14, shows the increase year-over-year we've seen in policyholder benefit reductions.

幻燈片 14 顯示了我們看到保單持有人福利減少的逐年增加。

Turning to Slide 15. Our Life and Annuity segment reported adjusted operating income of $2 million driven by an adjusted operating loss in life insurance of $17 million, offset by adjusted operating income from fixed annuities of $10 million and $9 million from variable annuities. Life and annuities were also impacted by the seasonally low mortality this quarter. In life insurance, mortality was improved versus the prior quarter and prior year and results reflected lower DAC amortization expense due to lower lapses and block runoff. Fixed annuities results were down versus the prior quarter and prior year from unfavorable fixed payout annuity mortality and lower net spreads. Variable annuities were flat versus the prior quarter and up versus the prior year from favorable impacts from the aging of the block, partially offset by lower fee income.

轉向幻燈片15。我們的人壽和年金部門報告調整後營業收入為200 萬美元，原因是人壽保險調整後營業虧損1700 萬美元，被固定年金1000 萬美元和可變年金900 萬美元調整後營業收入所抵消。本季度季節性低死亡率也影響了人壽和年金。在人壽保險領域，死亡率較上一季度和上年有所改善，結果反映出由於失誤和集體流失減少而導致 DAC 攤銷費用降低。由於不利的固定支付年金死亡率和較低的淨利差，固定年金業績較上一季度和上一年有所下降。由於區塊老化的有利影響，可變年金與上一季度持平，與上一年相比有所上升，但部分被費用收入下降所抵消。

As shown on Slide 16, we are estimating second quarter pretax statutory income for our U.S. life insurance companies in total to be $63 million, results were driven by strong variable annuity performance from net favorable equity markets and interest rate impacts and by life insurance earnings from seasonally low mortality which were partially offset by the LTC pretax loss of $71 million that I previously mentioned. The consolidated risk-based capital ratio for Genworth Life Insurance Company, or GLIC, is estimated at 293% at the end of June, down slightly from 295% in the first quarter as a result of higher required capital as the LTC block ages.

如幻燈片 16 所示，我們預計美國壽險公司第二季度的稅前法定收入總計為 6,300 萬美元，這一結果是由淨有利的股票市場和利率影響帶來的強勁可變年金表現以及來自季節性的低死亡率被我之前提到的7100 萬美元的LTC 稅前損失部分抵消。截至 6 月底，Genworth 人壽保險公司 (GLIC) 的綜合風險資本比率估計為 293%，略低於第一季度的 295%，原因是隨著 LTC 區塊老化，所需資本增加。

Our final statutory results will be available on our investor website with our second quarter filings later this month. We will continue to manage our U.S. life insurance companies on a stand-alone basis. Our focus is on stabilizing the legacy LTC block through our multiyear rate action plan as it is our most effective tool for managing LTC's risk. We do not expect to receive dividends from the business or to contribute capital into it. Therefore, we think it would be reasonable for investors valuing Genworth as a whole, to ascribe no value to the U.S. life insurance companies other than the intellectual property we are leveraging for our CareScout initiatives. We see tremendous value in Enact as evidenced by their strong capital returns and in our ability to grow CareScout over time.

我們的最終法定結果將於本月晚些時候在我們的投資者網站上與我們的第二季度文件一起公佈。我們將繼續獨立管理我們的美國人壽保險公司。我們的重點是通過我們的多年利率行動計劃來穩定傳統的 LTC 區塊，因為它是我們管理 LTC 風險的最有效工具。我們不期望從該企業獲得股息或向該企業注資。因此，我們認為，對於對 Genworth 整體進行估值的投資者來說，除了我們用於 CareScout 計劃的知識產權之外，不賦予美國人壽保險公司任何價值是合理的。我們看到 Enact 的巨大價值，他們強大的資本回報以及我們隨著時間的推移發展 CareScout 的能力就證明了這一點。

Rounding out GAAP results for the quarter. Corporate and Others current quarter adjusted operating loss of $20 million was higher compared to the prior year, driven by investment in future growth of CareScout.

完善本季度 GAAP 業績。受 CareScout 未來增長投資的推動，本季度企業及其他部門調整後運營虧損較上年同期增加 2,000 萬美元。

Moving to our investment portfolio. We remain well positioned to manage through ongoing economic uncertainty. We have not seen any notable deterioration in the macro environment since our last quarterly update. However, given the heightened focus on investment holdings, especially in commercial real estate, we continue to disclose our portfolio positions on Slide 17 and 18 in our investor presentation. With the regional bank pressures, we've rebalanced and optimized our holdings to exit higher-risk regional banks and trim our overall exposure.

轉向我們的投資組合。我們仍然處於有利地位，能夠應對持續的經濟不確定性。自上次季度更新以來，我們尚未看到宏觀環境出現任何顯著惡化。然而，鑑於對投資控股的高度關注，尤其是商業房地產，我們繼續在投資者演示文稿中的幻燈片 17 和 18 中披露我們的投資組合頭寸。面對區域性銀行的壓力，我們重新平衡並優化了我們的持股，以退出風險較高的區域性銀行並削減我們的整體風險敞口。

We said last quarter that we had sold our position in First Republic Bank and the corresponding $9 million pretax loss is reflected in our net investment gain number this quarter. The portfolio continues to benefit from the high interest rate environment, which allows us to invest at attractive new money rates. As a reminder, the majority of our assets are in investment-grade fixed maturities that are listed as available for sale, but we generally buy and hold the bonds to support the U.S. life insurance company's liabilities. Because the liabilities are very long duration, especially for LTC, we have limited liquidity risk.

我們上季度表示，我們已經出售了第一共和銀行的頭寸，相應的 900 萬美元稅前損失反映在我們本季度的淨投資收益中。該投資組合繼續受益於高利率環境，這使我們能夠以有吸引力的新貨幣利率進行投資。提醒一下，我們的大部分資產都是投資級固定期限的，被列為可供出售，但我們通常購買並持有這些債券以支持美國人壽保險公司的負債。由於負債期限很長，尤其是LTC，因此我們的流動性風險有限。

As seen on Slide 18, our commercial real estate holdings continue to account for approximately 16% of our total portfolio and are concentrated in higher quality investment-grade assets with modest office exposure of less than 20% on a weighted average basis. Broad credit performance has been stable across the quarter, and we remain confident in the quality of our commercial real estate portfolio and that it's well positioned amidst volatility.

如幻燈片 18 所示，我們的商業房地產持有量繼續占我們總投資組合的約 16%，並且集中於較高質量的投資級資產，而寫字樓的比重按加權平均計算低於 20%。本季度整體信貸表現一直穩定，我們對商業房地產投資組合的質量及其在波動中的良好定位充滿信心。

Turning to the holding company on Slide 19. After repurchasing $112 million worth of shares in the quarter, we ended the period with $222 million of cash and liquid assets. After reaching our holding company target last September, we strive to maintain a debt-to-capital ratio of 25% or below, which attributes no equity value to the U.S. life insurance companies. As of the second quarter, our debt-to-capital ratio was 23%, which we view as optimal given our low debt service relative to our size.

轉向幻燈片 19 上的控股公司。在本季度回購了價值 1.12 億美元的股票後，我們在本季度結束時擁有 2.22 億美元的現金和流動資產。去年9月達到控股公司目標後，我們努力將債務與資本比率維持在25%或以下，這對美國人壽保險公司來說沒有股權價值。截至第二季度，我們的債務與資本比率為 23%，考慮到我們的償債相對於我們的規模較低，我們認為這是最佳的。

We received $54 million of capital from Enact and $63 million from intercompany tax payments in the quarter. Year-to-date, we've received $111 million in tax payments. And for the full year, we continue to expect a total of approximately $175 million to $200 million. There's approximately $75 million of remaining holding company deferred tax assets, mainly foreign tax credits that we expect to utilize this year dependent on the taxable income generated by our subsidiaries. Once these tax assets are exhausted, we anticipate becoming a federal taxpayer.

本季度，我們從 Enact 獲得了 5400 萬美元的資本，並從公司間納稅中獲得了 6300 萬美元。今年迄今為止，我們已收到 1.11 億美元的稅款。對於全年，我們仍然預計總額約為 1.75 億至 2 億美元。控股公司剩餘的遞延稅資產約為 7500 萬美元，主要是我們預計今年將根據我們子公司產生的應稅收入使用的外國稅收抵免。一旦這些稅收資產耗盡，我們預計將成為聯邦納稅人。

Tom described our capital allocation strategy, and I'll reiterate that our top priorities remain investing in long-term growth through CareScout and returning cash to shareholders through our expanded share repurchase program. We're very pleased the Board authorized the expansion of our share repurchase program by $350 million. Through July, we completed 75% of the initial $350 million program that began in May 2022, and we expect to complete the remaining amount by the end of this year. The program's expansion allows us to continue to return capital to shareholders as we head into 2024.

Tom 描述了我們的資本配置策略，我將重申，我們的首要任務仍然是通過 CareScout 投資於長期增長，並通過擴大的股票回購計劃向股東返還現金。我們非常高興董事會授權將我們的股票回購計劃擴大 3.5 億美元。截至 7 月，我們已完成 2022 年 5 月開始的 3.5 億美元初始計劃的 75%，預計在今年年底前完成剩餘金額。該計劃的擴展使我們能夠在進入 2024 年時繼續向股東返還資本。

Through the first half of this year, we delivered on our strategic priorities to drive value for our shareholders while proactively managing our liabilities and the risk in our legacy long term care insurance block. The multiyear rate action plan continues to be successful and with the additional benefit from the 3 legal settlements, it enhances our ability to honor policyholder commitments and stabilize the legacy LTC block. I'm excited about the future of Genworth as we utilize our deep knowledge in the senior care space to innovate new aging care services and solutions with CareScout.

今年上半年，我們實現了為股東創造價值的戰略重點，同時積極管理我們遺留的長期護理保險板塊的負債和風險。多年利率行動計劃繼續取得成功，並從 3 項法律和解中獲得額外好處，它增強了我們履行保單持有人承諾和穩定傳統 LTC 區塊的能力。我對 Genworth 的未來感到興奮，因為我們利用我們在老年護理領域的深厚知識，與 CareScout 一起創新新的老年護理服務和解決方案。

Enact remains very well positioned in the mortgage insurance market and their business performance and increased capital return guidance will enable us to continue to return capital to Genworth shareholders. Now let's open up the line for questions.

Enact 在抵押貸款保險市場中仍然處於非常有利的地位，他們的業務表現和增加的資本回報指導將使我們能夠繼續向 Genworth 股東返還資本。現在讓我們開放提問熱線。

(Operator Instructions) We'll take our first question from Joshua Esterov with CreditSights.

（操作員說明）我們將接受 CreditSights 的 Joshua Esterov 提出的第一個問題。

Maybe two questions, if I can, on LDTI and LTC. First, with regards to the intercompany tax-sharing payments, can you remind me whether Genworth's parent's ability to build its subsidiaries based on GAAP or statutory profitability? And basically, what I'm trying to get a sense of is whether or not the quarterly volatility in GAAP LTC earnings from implementation of LDTI might impact these intercompany tax payment.

如果可以的話，也許有兩個關於 LDTI 和 LTC 的問題。首先，關於公司間稅收共享支付，您能否提醒我Genworth母公司是否有能力根據GAAP或法定盈利能力建立子公司？基本上，我想了解的是，實施 LDTI 所帶來的 GAAP LTC 收益的季度波動是否會影響這些公司間納稅。

So I'll -- Jerome, I'll take the first part of that and just say that it's a good question. Our statutory results are much closer to tax results and therefore, looking at the ability to utilize those remaining tax credits, it's more driven by -- it's taxable earnings, but it's closer to statutory where GAAP going to be quite different.

所以我會——杰羅姆，我會回答第一部分，只是說這是一個很好的問題。我們的法定結果更接近於稅收結果，因此，考慮利用這些剩餘稅收抵免的能力，它更多地是由應稅收入驅動的，但它更接近法定結果，而公認會計原則將有很大不同。

Got it. And then second, with regards to LTC. How should we expect GAAP reserves to develop relative to statutory reserves under the LDTI regime? And I understand that LDTI doesn't impact the statutory financials. But over time, should we expect GAAP reserves potentially to drift away from statutory reserves unless there's some kind of unlocking event?

知道了。其次，關於 LTC。相對於 LDTI 制度下的法定準備金，我們應該如何預期 GAAP 準備金的發展？據我了解，LDTI 不會影響法定財務狀況。但隨著時間的推移，我們是否應該預期 GAAP 準備金可能會偏離法定準備金，除非發生某種解鎖事件？

So Jerome, do you want to take that?

杰羅姆，你想接受嗎？

Yes. Josh, I would just describe this as LDTI is totally different basis of accounting. So GAAP is a totally different basis of accounting from stat and the reserves under U.S. GAAP are going to be on a best estimate basis, are going to be discounted at a locked-in rate and then further discounted and this is only -- this only impacts the balance sheet, but they're further discounted based on the single A rate, and that really just impacts reserves on the balance sheet when you go to the single A rate. But you also have the locked-in rate.

是的。喬什，我只是將其描述為 LDTI 是完全不同的會計基礎。因此，GAAP 是與統計數據完全不同的會計基礎，美國 GAAP 下的準備金將以最佳估計為基礎，將以鎖定利率貼現，然後進一步貼現，這只是——這只是影響資產負債表，但它們會根據單一A 利率進一步貼現，而當您採用單一A 利率時，這實際上只會影響資產負債表上的準備金。但你也有鎖定率。

On the statutory side, you have a very prescriptive methodology that we use, particularly on the active life reserve. And so it would be very difficult for me to tell you that they're going to combine or go together versus drift apart. If I had to, I would just say that there will be demonstrative differences between the two. Would be very difficult to quantify for you.

在法定方面，我們使用非常規範的方法，特別是在活躍生命儲備方面。因此，我很難告訴你他們會結合或在一起，還是會分道揚鑣。如果必須的話，我只想說兩者之間存在示範性差異。對你來說很難量化。

And you know from an LDTI perspective, I would just also highlight that I mean we've said that we really focus on statutory accounting. The LDTI income will be volatile because half of our block has cap cohorts, thus versus the other half with uncapped cohorts. And statutory accounting is really our focus because it's what we review with our regulators. It's what we review with our rating agencies. And it's been a consistent basis of accounting that highlights the progress we're making with the company on breakeven.

您知道，從 LDTI 的角度來看，我還要強調一點，我的意思是我們已經說過，我們真正關注法定會計。 LDTI 收入將會波動，因為我們區塊的一半有上限隊列，而另一半則有無上限隊列。法定會計確實是我們的重點，因為這是我們與監管機構一起審查的內容。這是我們與評級機構一起審查的內容。這是一個一致的會計基礎，突顯了我們在公司盈虧平衡方面所取得的進展。

(Operator Instructions) Ladies and gentlemen, I will now turn the call back over to Mr. McInerney for closing comments.

（操作員指示）女士們、先生們，我現在將把電話轉回給 McInerney 先生徵求結束意見。

Thank you very much. In closing, I would just say that -- as both Jerome and I have talked about, we believe it's important for investors and analysts to evaluate LTC and life and annuities under both U.S. GAAP and statutory accounting, U.S. GAAP results will generally be more volatile, as we've said, than statutory because of the disparate treatment of the different LTC cohorts that are roughly 50-50 between the older capped unprofitable and relatively newer uncapped and profitable blocks. But we also want to emphasize that because we look at U.S. LI or the life companies as a closed system. They have little impact on holding company cash and capital other than the tax payments, assuming that we have tax credits to offset that.

非常感謝。最後，我只想說，正如杰羅姆和我所談到的，我們認為投資者和分析師根據美國公認會計準則和法定會計準則評估長期TC、人壽和年金非常重要，美國公認會計準則的結果通常會更加波動正如我們所說，這比法定的要多，因為不同LTC 群體的待遇不同，較舊的有上限的無盈利區塊和相對較新的無上限且盈利區塊之間的比例大約為50-50。但我們也想強調這一點，因為我們將美國壽險公司或壽險公司視為一個封閉的系統。除了納稅之外，它們對控股公司的現金和資本幾乎沒有影響，假設我們有稅收抵免來抵消。

We value and have valued and have said to investors for a long time that we value the life company (inaudible) at this point because we're not putting capital in or taking it out. And I was -- the main effort is the focus on the multiyear rate action plan and to get the LTC business to breakeven. We think that's a few years out. And our focus is -- the enterprise value is really more based on our 81.6% holdings in that. And we're very encouraged by the early days in CareScout.

我們重視並一直重視並向投資者表示，我們目前重視壽險公司（聽不清），因為我們沒有投入或取出資本。我的主要工作是關注多年費率行動計劃並讓 LTC 業務實現收支平衡。我們認為這還需要幾年的時間。我們的重點是——企業價值實際上更多地基於我們持有的 81.6% 的股份。 CareScout 的早期發展讓我們深受鼓舞。

We talked about, Jerome talked about the great progress in Texas. We launched that earlier this year, and we've got about 50% of the stake covered in terms of -- by our approved quality network covering about 50% of the 65-plus group. We're proud of the progress against our 3 strategic priorities, and I went through those. And obviously, we're very pleased with Enact's continued strong results. We continue to allocate the excess cash from Enact which had another great quarter to drive long-term shareholder value, both investing in CareScout going forward as well as returning capital to shareholders through the share repurchase program that we're pleased that the Board authorized, significant increase of another $350 million.

我們談到，杰羅姆談到了德克薩斯州的巨大進步。我們於今年早些時候推出了該服務，我們已獲得約 50% 的股份，通過我們批准的質量網絡覆蓋了 65 歲以上群體的約 50%。我們為我們的 3 個戰略重點所取得的進展感到自豪，我也經歷了這些。顯然，我們對 Enact 持續強勁的業績感到非常滿意。我們繼續分配 Enact 的多餘現金，該季度又一個出色的季度來推動長期股東價值，既投資 CareScout 的未來，又通過股票回購計劃向股東返還資本，我們很高興董事會批准了該計劃，又大幅增加3.5 億美元。

Thank you all for your interest and support of Genworth. We really appreciate it. We'll see you next quarter. And with that, operator, I'll turn it back over to you.

感謝大家對 Genworth 的關注和支持。我們真的很感激。我們下季度見。這樣，接線員，我會將其轉回給您。

Ladies and gentlemen, this concludes Genworth Financial's Second Quarter Conference Call. Thank you for your participation. At this time, the call will end.

女士們、先生們，Genworth Financial 第二季度電話會議到此結束。感謝您的參與。這時，通話就會結束。