Genworth Financial Inc (GNW) 2023 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Genworth's Financial Third Quarter 2023 Earnings Conference Call. My name is Lisa, and I will be your coordinator today.

早安，女士們、先生們，歡迎參加 Genworth 2023 年第三季財務收益電話會議。我叫麗莎，今天我將擔任你們的協調員。

(Operator Instructions)

（操作員說明）

As a reminder, the conference is being recorded for replay purposes.

謹此提醒，會議正在錄製以供重播之用。

(Operator Instructions)

（操作員說明）

I would now like to turn the presentation over to Brian Johnson, Senior Vice President of Financial Planning and Analysis. Please go ahead.

我現在想將簡報交給財務規劃和分析高級副總裁布萊恩·約翰遜 (Brian Johnson)。請繼續。

Thank you, and good morning. Welcome to Genworth's Third Quarter 2023 Earnings Call. The slide presentation that accompanies this call is available on the Investor Relations section of the Genworth's website investor.genworth.com. Our earnings release and financial supplement can also be found there, and we encourage you to review these materials.

謝謝你，早安。歡迎參加 Genworth 2023 年第三季財報電話會議。本次電話會議附帶的幻燈片簡報可在 Genworth 網站 Investor.genworth.com 的投資者關係部分取得。我們的收益發布和財務補充也可以在那裡找到，我們鼓勵您查看這些資料。

Speaking today will be Tom McInerney, President and Chief Executive Officer; and Jerome Upton, Chief Financial Officer. Following our prepared remarks, we will open up the call 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.

今天發言的是總裁兼執行長湯姆‧麥金納尼 (Tom McInerney)；和財務長傑羅姆厄普頓。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；首席投資長 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有重大差異。我們建議您閱讀我們的收益發布和相關簡報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.

今天早上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。在我們的投資者資料中，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執行長湯姆‧麥金納尼 (Tom McInerney)。

Thank you, Brian. Good morning, everyone, and thank you for joining our third quarter earnings call. Genworth continued to make progress against our strategic priorities in the third quarter as we deliver long-term growth and drive shareholder value. In the third quarter, Genworth reported net income of $29 million or $0.06 per diluted share and adjusted operating income of $42 million or $0.09 per diluted share. Enact again, had a very strong quarter with adjusted operating income of $134 million to Genworth.

謝謝你，布萊恩。大家早安，感謝您參加我們的第三季財報電話會議。隨著我們實現長期成長並推動股東價值，Genworth 在第三季度繼續在我們的策略重點方面取得進展。第三季度，Genworth 報告淨利潤為 2,900 萬美元，即稀釋後每股收益 0.06 美元，調整後營業收入為 4,200 萬美元，即稀釋後每股收益 0.09 美元。 Enact 再次迎來了非常強勁的季度，Genworth 調整後營業收入為 1.34 億美元。

We are very pleased with Enact continued strong operating performance and capital levels. LTC had an adjusted operating loss of $71 million, driven by a liability remeasurement loss under LDTI. Investors can refer to Slide 20 in our slide presentation and our commentary from last quarter for more details on how differences in our actual to expected experience drive quarterly volatility in this line item.

我們對 Enact 持續強勁的營運表現和資本水準感到非常滿意。由於 LDTI 下的負債重新計量損失，LTC 的調整後營運虧損為 7,100 萬美元。投資人可以參考我們投影片 20 以及我們上個季度的評論，詳細了解我們的實際經驗與預期經驗的差異如何驅動該行項目的季度波動。

On a statutory accounting basis, pretax income for the U.S. Life Insurance companies is estimated at $30 million, driven by $21 million of pretax earnings in LTC. Complete statutory results for our U.S. Life Insurance companies will be available when we file our third quarter statutory statements later this month.

根據法定會計基礎，美國人壽保險公司的稅前收入估計為 3,000 萬美元，其中 LTC 稅前收入為 2,100 萬美元。當我們在本月稍後提交第三季法定報表時，我們將獲得美國人壽保險公司的完整法定業績。

As a reminder, we believe investors should evaluate LTC results under both U.S. GAAP and U.S. statutory accounting to have a more complete understanding of LTC results. 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 breakeven on a go-forward basis.

提醒一下，我們認為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 的表現。轉向我們的 3 個策略重點。我們主要透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，這是我們使我們傳統 LTC 保險組合在未來實現盈虧平衡的最有效工具。

We achieved a total of $83 million of gross incremental premium approved in the third quarter resulting in a total of $227 million of premium approved year-to-date. This brings our cumulative progress to approximately $25 billion and approvals on a net present value basis since 2012. We are very pleased with our progress year-to-date and now expect our total gross incremental premium improved for the full year to be at least $275 million.

第三季我們核准的總保費增量為 8,300 萬美元，年初至今核准的保費總額為 2.27 億美元。這使我們自 2012 年以來的累積進展達到約 250 億美元，並以淨現值為基礎獲得批准。我們對今年迄今為止的進展感到非常滿意，現在預計全年總增量保費將提高至少 275 美元百萬。

Turning to the next strategic priority. We continue to leverage Genworth's LTC expertise to develop innovative agent care solutions. CareScout Services has made significant progress on the build-out of our quality care 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.

轉向下一個戰略重點。我們繼續利用 Genworth 的 LTC 專業知識來開發創新的座席護理解決方案。 CareScout Services 在建立我們的高級護理提供者優質護理網絡方面取得了重大進展，並首次在德克薩斯州推出。德州是一個大型長期照護保險市場，Genworth 在那裡擁有約 43,000 名保單持有人。

We now 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 at discount rates. We are pleased to share that policyholders have begun to make their first matches with their network providers in Texas.

現在，我們的 CareScout 優質網路覆蓋了約 50% 的德州 65 歲以上人口，供應商符合我們的品質認證標準並同意以折扣價進行談判。我們很高興地告訴大家，保單持有人已經開始與德州的網路供應商進行首次配對。

With the discount of rates negotiated, Genworth policyholders will be able to extend their available benefits and our preliminary projections indicate that Genworth will realize claim savings over time of between $1 billion to $1.5 billion, driving further risk mitigation for the legacy LTC block.

透過協商的費率折扣，Genworth 保單持有人將能夠延長其可用福利，我們的初步預測表明，隨著時間的推移，Genworth 將實現索賠節省10 億至15 億美元，從而進一步緩解傳統LTC 區塊的風險。

CareScout Services offers an attractive value proposition for both policyholders and providers. For providers, join the quality network offers preferred access to qualified care seekers, recognition for quality care and opportunities to strengthen their person-centered care experience. We have strong momentum to expand the network beyond Texas with care providers so far across the country. We are building a regional sales organization and have hired 3 of 6 regional Vice Presidents in the Southwest, Southeast and Mid-Atlantic regions.

CareScout Services 為保單持有人和提供者提供了極具吸引力的價值主張。對於提供者來說，加入優質網路可以優先接觸合格的護理尋求者、對優質護理的認可以及加強以人為本的護理體驗的機會。迄今為止，我們有強勁的勢頭將護理提供者網路擴展到德克薩斯州以外的全國各地。我們正在建立一個區域銷售組織，並在西南、東南和大西洋中部地區聘請了 6 名區域副總裁中的 3 名。

The field sales organization will be responsible for building the CareScout quality network in the regions and will drive new sales of CareScout LTC insurance products when they are introduced later in 2024. We plan to expand CareScout's customer base beyond Genworth policyholders to include other LTC insurance carriers, policyholders and eventually will offer CareScout services and LTC insurance products to all Americans.

現場銷售組織將負責在各地區建立CareScout 品質網絡，並將在2024 年稍後推出CareScout LTC 保險產品時推動新的銷售。我們計劃將CareScout 的客戶群擴展到Genworth 保單持有人之外，包括其他LTC 保險公司、保單持有人，最終將為所有美國人提供 CareScout 服務和 LTC 保險產品。

As we have said before, we believe a successful transformation of the U.S. LTC market will address both financing and services for our customers and ultimately, will help to reduce the likelihood of people needing care and less in the care they need. To enhance the success of CareScout, we are engaging with our state regulators and working with a few highly rated reinsurers to partner with us as we bring new LTC products to the market. We will continue to provide quarterly updates to investors as we move forward in 2024.

正如我們之前所說，我們相信美國長期照護市場的成功轉型將為我們的客戶解決融資和服務問題，最終將有助於減少人們需要照護的可能性以及減少他們需要的照護。為了提高 CareScout 的成功率，我們正在與州監管機構合作，並與一些評價較高的再保險公司合作，將新的長期照護產品推向市場。隨著 2024 年的進展，我們將繼續向投資者提供季度更新。

Moving to our third strategic priority, capital management. We continue to allocate excess cash from Enact to drive Genworth's long-term shareholder value. We returned significant capital to shareholders via share repurchases and have repurchased a total of approximately $334 million of shares at an average price of $5.24 per share since the program's inception in May 2022.

轉向我們的第三個策略重點：資本管理。我們繼續從 Enact 分配多餘現金，以推動 Genworth 的長期股東價值。自 2022 年 5 月該計畫啟動以來，我們透過股票回購向股東返還了大量資本，並以每股 5.24 美元的平均價格回購了總計約 3.34 億美元的股票。

Including the expansion to the program we announced July 31, we have approximately $366 million of outstanding repurchase authority. Cash flows from Enact have also enabled us to invest in long-term growth in CareScout, and we continue to expect approximately $30 million of capital contributions to CareScout this year.

包括我們 7 月 31 日宣布的計畫擴展在內，我們擁有約 3.66 億美元的未償還回購權。 Enact 的現金流量也使我們能夠投資於 CareScout 的長期成長，我們繼續預計今年將向 CareScout 提供約 3,000 萬美元的資本捐助。

Genworth received $26 million of capital from Enact in the third quarter. Since Enact's IPO, Genworth has received approximately $493 million in capital from Enact through October 2023. We expect our 81.6% ownership of Enact to be the primary source of free cash flow moving forward.

Genworth 在第三季從 Enact 獲得了 2,600 萬美元的資金。自 Enact 首次公開募股以來，截至 2023 年 10 月，Genworth 已從 Enact 獲得約 4.93 億美元的資本。我們預計我們對 Enact 81.6% 的所有權將成為未來自由現金流的主要來源。

We recently increased the flexibility we have in our capital management program through a bondholder consent solicitation. The transaction, which Jerome will discuss in more detail, resulted in an amendment to a restrictive covenant that limited our ability to repurchase our 2066 subordinated notes.

最近，我們透過徵求債券持有人同意，提高了資本管理計畫的靈活性。傑羅姆將更詳細地討論該交易，該交易導致對限制性契約的修訂，該契約限制了我們回購 2066 年次級票據的能力。

This amendment gives us more optionality to make opportunistic holding company debt repurchases while prioritizing growth investments and share repurchases. As we have said before, it is important to remember our commitment to managing the U.S. Life companies on a stand-alone basis. They operate as a closed system, leveraging existing reserves and capital, current premiums as well as future new premiums under the LTC multiyear rate action plan to cover liabilities.

這項修正案使我們有更多的選擇權進行機會性控股公司債務回購，同時優先考慮成長投資和股票回購。正如我們之前所說，重要的是要記住我們對獨立管理美國壽險公司的承諾。它們作為一個封閉系統運作，利用現有準備金和資本、當前保費以及 LTC 多年利率行動計劃下的未來新保費來彌補負債。

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 year still over a decade away, we also do not expect capital returns from the U.S. Life Insurance companies.

我們沒有計劃向美國人壽保險公司追加資本，而且考慮到我們的長期照護保險保單的長尾效應，距離索賠高峰年還有十多年，我們也不期望美國人壽保險公司獲得資本回報。

Looking ahead, Genworth's enterprise value and future potential are rooted in our 81.6% ownership stake in Enact and our strategy to grow CareScout into a profitable comprehensive provider of long-term care services, insurance and other solutions, leveraging the intellectual property, data expertise and experience we have accumulated over 5 decades.

展望未來，Genworth 的企業價值和未來潛力植根於我們持有Enact 81.6% 的股權，以及我們利用智慧財產權、數據專業知識和技術，將CareScout 發展成為長期照護服務、保險和其他解決方案的獲利性綜合提供者的策略。我們已經累積了 5 年的經驗。

In closing, I'm very pleased with Enact's outstanding performance and our strong execution against our 3 strategic priorities year-to-date. We are working from a strong financial foundation with a significantly improved balance sheet, low annual debt service obligations and increased flexibility in how we allocate cash flows from Enact. With that, I'll turn the call over to Jerome.

最後，我對 Enact 的出色表現以及我們今年迄今為止對 3 個戰略重點的強有力執行感到非常滿意。我們擁有強大的財務基礎、顯著改善的資產負債表、較低的年度償債義務以及我們分配 Enact 現金流的靈活性。這樣，我就把電話轉給傑羅姆。

Thank you, Tom, and good morning, everyone. I'm pleased with the ongoing value creation delivered by Enact, progress on in-force rate actions as well as our progress on capital optimization and improving financial flexibility. I'll first discuss the quarterly results and drivers in more detail and then provide a preview of our fourth quarter assumption review process.

謝謝你，湯姆，大家早安。我對 Enact 持續創造的價值、有效利率行動的進展以及我們在資本優化和提高財務靈活性方面取得的進展感到滿意。我將首先更詳細地討論季度業績和驅動因素，然後預覽我們的第四季度假設審查流程。

I'll also give an update on our capital position and investment portfolio. In the third quarter, Genworth delivered net income of $29 million or $0.06 per diluted share and adjusted operating income of $42 million or $0.09 per diluted share. These results were primarily driven by Enact, which delivered $134 million in adjusted operating income to Genworth, reflecting ongoing solid business fundamentals and favorable loss performance.

我還將介紹我們的資本狀況和投資組合的最新情況。第三季度，Genworth 淨利潤為 2,900 萬美元，即稀釋後每股收益 0.06 美元，調整後營業收入為 4,200 萬美元，即稀釋後每股收益 0.09 美元。這些業績主要是由 Enact 推動的，Enact 為 Genworth 帶來了 1.34 億美元的調整後營業收入，反映出持續穩健的業務基本面和良好的虧損表現。

Enact results are detailed on Slide 6. Primary insurance in force increased 8% year-over-year to a record $262 billion driven by new insurance written and continued elevated persistency. Slide 7 shows Enact had a favorable $55 million reserve release, which drove a loss ratio of 7%. The reserve release primarily reflects favorable cure performance on 2022 and earlier delinquencies. Both Enact's prior quarter and prior year results included favorable net reserve releases as well totaling $63 million and $80 million, respectively. Enact has a strong estimated PMIER sufficiency ratio of 162%, approximately $2 billion above PMIERs requirements.

Enact 的結果詳見幻燈片 6。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 8%，達到創紀錄的 2,620 億美元。投影片 7 顯示 Enact 釋放了 5,500 萬美元的有利準備金，導致損失率達到 7%。準備金釋放主要反映了 2022 年及之前拖欠情況的良好治癒表現。 Enact 上一季和前一年的業績均包括有利的淨儲備釋放，總額分別為 6,300 萬美元和 8,000 萬美元。 Enact 預計 PMIER 充足率高達 162%，比 PMIER 要求高出約 20 億美元。

Enact's quarterly dividend payment of $0.16 per share generated proceeds of $21 million to Genworth in September. Enact recently announced this Board approved a special cash dividend of $113 million payable in December and has reiterated its commitment to return a total of approximately $300 million to its shareholders this year. Based on our 81.6% ownership position, we continue to expect to receive $245 million from Enact through its quarterly dividends, share repurchases and special dividend for the full year.

9 月份，Enact 支付的每股 0.16 美元的季度股息為 Genworth 帶來了 2,100 萬美元的收益。 Enact 最近宣布，董事會批准了 12 月支付的 1.13 億美元特別現金股息，並重申今年向股東返還總計約 3 億美元的承諾。基於我們 81.6% 的所有權地位，我們繼續預計透過全年季度股息、股票回購和特別股息從 Enact 獲得 2.45 億美元。

Sustainable cash flows from Enact will continue to fuel Genworth's strategic initiatives and capital optimization going forward. Turning to long-term care insurance. Starting on Slide 8, we continue to reduce the tail risk on our legacy LTC block with progress on our multiyear rate action plan and legal settlements. As of the end of the quarter, we have achieved in-force rate actions of approximately $25 billion on a net present value basis since 2012 and seen a policyholder response rate of 49% to reduce benefits.

Enact 的可持續現金流將繼續推動 Genworth 的策略性舉措和資本優化。轉向長期照護保險。從幻燈片 8 開始，我們繼續降低遺留 LTC 區塊的尾部風險，並在多年利率行動計劃和法律和解方面取得進展。截至本季末，自 2012 年以來，我們已實施了約 250 億美元的有效利率行動（以淨現值計算），保單持有人對減少福利的回應率為 49%。

Slides 9 and 10 show more details on the filings approved in recent quarter as well as positive trend we've seen in policyholder benefit reduction elections, both of which demonstrate the progress we're making on our strategy. In addition to the multiyear rate action plan, recent legal settlements have further reduced LTC risk.

幻燈片 9 和 10 顯示了最近季度批准的申請的更多詳細信息，以及我們在保單持有人福利削減選舉中看到的積極趨勢，這兩者都表明了我們在戰略上取得的進展。除了多年利率行動計劃外，最近的法律和解進一步降低了LTC風險。

In connection with these settlements, many policyholders have elected to reduce their benefits in order to reduce or eliminate their premiums. These are good outcomes for policyholders who are able to maintain meaningful coverage and for Genworth as we are able to reduce our tail risk on these policies and further protect our claims paying ability.

與這些和解相關，許多保單持有人選擇減少他們的福利，以減少或消除他們的保費。對於能夠維持有意義的承保範圍的保單持有人和 Genworth 來說，這些都是良好的結果，因為我們能夠降低這些保單的尾部風險並進一步保護我們的索賠支付能力。

Long-term care insurance GAAP results are covered on Slide 11. Our LTC segment reported an adjusted operating loss of $71 million in the third quarter compared to an adjusted operating loss of $43 million in the prior quarter and adjusted operating income of $26 million in the prior year. There is significant volatility in our quarterly earnings under GAAP accounting as we measure actual to expected quarterly experience on our approximately $42 billion liability for future policy benefits at the locked-in discount rate.

幻燈片11 涵蓋了長期照護保險GAAP 業績。我們的LTC 部門第三季調整後營運虧損為7,100 萬美元，而上一季調整後營運虧損為4,300 萬美元，第二季調整後營運收入為2,600 萬美元。去年。根據 GAAP 會計準則，我們的季度收益存在顯著波動，因為我們以鎖定貼現率衡量未來保單福利約 420 億美元負債的實際與預期季度經驗。

The third quarter loss was driven by a liability remeasurement loss of $104 million principally on our unprofitable or capped cohorts. This reflects differences in our actual to expected experience during the quarter related to the timing of legal settlement impacts as well as higher claims and lower terminations.

第三季虧損是由 1.04 億美元的負債重新計量虧損造成的，主要是我們無利可圖或上限的群體。這反映了我們在本季度的實際經驗與預期經驗的差異，這些差異與法律和解影響的時間以及較高的索賠和較低的終止有關。

As a reminder, in the fourth quarter of 2022, our assumption updates included an approximately $300 million favorable update largely related to the PCS I and II settlement. Despite the quarterly variation and experience, we expect the settlement to be very favorable and materially complete at the end of 2023. Actual to expected differences will continue to impact the quarterly P&L as liability remeasurement is performed quarterly at a granular cohort level under LDTI accounting.

提醒一下，在 2022 年第四季度，我們的假設更新包括約 3 億美元的有利更新，主要與 PCS I 和 II 和解有關。儘管存在季度差異和經驗，但我們預計和解將非常有利，並在 2023 年底基本完成。實際與預期的差異將繼續影響季度損益，因為根據 LDTI 會計，負債重新計量是按季度進行的。

However, it's important to remember these quarterly variations do not impact cash flows the long-term economics or the way we manage the LTC business. Now turning to our Life and Annuity segment, GAAP results on Slide 12. The segment reported an adjusted operating loss of $3 million, driven by an adjusted operating loss in life insurance of $25 million, partially offset by adjusted operating income of $17 million from fixed annuities and $5 million from variable annuities.

然而，重要的是要記住這些季度變化不會影響現金流、長期經濟或我們管理 LTC 業務的方式。現在轉向我們的人壽和年金部門，幻燈片12 上的GAAP 業績。該部門報告調整後營業虧損為300 萬美元，這是由人壽保險調整後營業虧損2500 萬美元推動的，部分被固定資產調整後營業收入1700 萬美元所抵銷。年金和 500 萬美元可變年金。

In life insurance, mortality was favorable versus the prior year and DAC amortization expense was slightly lower due to lower lapses and block runoff. However, results for the quarter also included an unfavorable impact from the voluntary recapture of previously ceded reinsurance. Fixed Annuities results were up versus the prior quarter and prior year due to favorable fixed payout annuity mortality, partially offset by lower net spreads.

在人壽保險方面，死亡率較上一年有所改善，並且由於失誤和集體徑流減少，DAC 攤銷費用略有下降。然而，該季度的業績也包括自願收回先前放棄的再保險所帶來的不利影響。由於有利的固定支付年金死亡率，固定年金業績較上一季度和前一年有所上升，但部分被較低的淨利差所抵消。

Variable annuities were down versus the prior quarter due to unfavorable mortality and down versus the prior year due to lower fee income. Rounding out the third quarter GAAP results, our Corporate and other segment reported an adjusted operating loss of $18 million, which included corporate interest expense and our investment in CareScout. For the full year, we continue to expect to invest about $30 million in CareScout as we scale the services business.

由於死亡率不利，可變年金較上一季下降，由於費用收入較低，可變年金較上一年下降。第三季 GAAP 業績結束後，我們的企業和其他部門報告調整後營運虧損為 1,800 萬美元，其中包括企業利息支出和我們對 CareScout 的投資。全年，隨著我們擴大服務業務，我們預計將繼續向 CareScout 投資約 3,000 萬美元。

I'm now going to discuss statutory results for our U.S. Life Insurance companies. As we have said before, we believe statutory results better represent the underlying performance of the life companies and the way we manage the business.

我現在要討論我們美國人壽保險公司的法定結果。正如我們之前所說，我們相信法定業績更好地代表了壽險公司的基本業績以及我們管理業務的方式。

Slide 13 illustrates the continued benefit the in-force rate actions and legal settlements have on our LTC business, as shown through the $1.1 billion benefit the statutory income on a pretax basis recognized year-to-date. Overall, statutory earnings in LTC were $88 million through the first 9 months of the year, which are down significantly from the $315 million during the same period of 2022, driven by higher claims as the block ages, lower variable investment income and block runoff, partially offset by growth in the impact of in-force rate actions and legal settlements.

投影片 13 說明了有效的利率訴訟和法律和解對我們的 LTC 業務帶來的持續好處，如年初至今確認的稅前法定收入 11 億美元的好處所示。總體而言，今年前 9 個月，LTC 的法定收益為 8,800 萬美元，較 2022 年同期的 3.15 億美元大幅下降，原因是區塊老化導致的索賠增加、可變投資收入下降和區塊徑流，部分被有效的費率訴訟和法律和解影響的成長所抵銷。

Our primary focus for the LTC block remains to continue pursuing premium increases and reducing risk through benefit reductions, the combination of which gets us closer to economic breakeven. Slide 14 shows that paid claims are increasing as the blocks age and temporary trends through the pandemic subside. Paid claims will continue to increase as peak claim years on our largest blocks, Choice I and II are over a decade away.

我們對 LTC 區塊的主要關注點仍然是繼續追求保費增加並透過福利減少來降低風險，這兩者的結合使我們更接近經濟盈虧平衡。投影片 14 顯示，隨著區塊老化和疫情期間的暫時趨勢消退，有償索賠正在增加。隨著我們最大區塊（選擇 I 和 II）的索賠高峰年到來，付費索賠將繼續增加。

This trend is expected and incorporated in our long-term assumptions and reserve methodology. We will continue to monitor new claims growth and benefit utilization trends as experience emerges. Slide 15 shows our third quarter total pretax statutory income for the U.S. Life Insurance companies. This is estimated at $30 million, driven by pretax earnings of $21 million in LTC as a result of continued benefits from in-force rate actions and the related settlements as well as in fixed annuities from favorable mortality.

這一趨勢是我們預期的，並已納入我們的長期假設和準備金方法中。隨著經驗的積累，我們將繼續監控新索賠的成長和福利利用趨勢。投影片 15 顯示了美國人壽保險公司第三季度的稅前法定收入總額。據估計，這一數字為 3000 萬美元，主要是由於有效利率行動和相關和解帶來的持續收益以及有利死亡率帶來的固定年金帶來的 2100 萬美元 LTC 稅前收益的推動。

This was partially offset by a pretax loss in the life insurance products, including a $45 million negative impact from recaptured previously ceded reinsurance. This was primarily related to the Scottish Re recapture, whereby we wrote off assets and liabilities associated with the reinsurance through the P&L as required under statutory accounting. However, this did not significantly impact GLIC's capital position as the non-admitted and unauthorized reinsurance were previously captured in surplus and subsequently released.

這部分被人壽保險產品的稅前損失所抵消，其中包括收回先前分出的再保險帶來的 4500 萬美元的負面影響。這主要與蘇格蘭再保險的收回有關，根據法定會計的要求，我們透過損益表沖銷了與再保險相關的資產和負債。然而，這並沒有對 GLIC 的資本狀況產生重大影響，因為未經認可和未經授權的再保險之前已計入盈餘，隨後又被釋放。

This had an immaterial impact on our GAAP results. The consolidated risk-based capital ratio for Genworth Life Insurance Company, or GLIC, is estimated at 291% at the end of September. GLIC's consolidated balance sheet remains sound with capital and surplus as of September 30, estimated at $3.2 billion.

這對我們公認的會計準則結果產生了非實質影響。截至 9 月底，Genworth 人壽保險公司 (GLIC) 的綜合風險資本比率估計為 291%。截至 9 月 30 日，GLIC 的合併資產負債表依然穩健，資本和盈餘估計為 32 億美元。

Our final statutory results will be available on our investor website with our third quarter filings later this month. Looking ahead, I'd like to discuss our approach to this year's annual assumption review, which will be completed in the fourth quarter. Although our reviews are not complete, we have been monitoring emerging trends and wanted to provide an update on our observations.

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三季文件一起公佈。展望未來，我想討論我們今年年度假設審查的方法，該審查將於第四季度完成。儘管我們的審查尚未完成，但我們一直在監測新興趨勢，並希望提供我們觀察結果的最新資訊。

Under GAAP accounting, the impact of LTC assumption updates for both healthy and disabled lives will be reflected as remeasurement gains or losses on the income statement with key differences based on cohorts. For unprofitable capped cohorts, any assumption changes from current best estimates would be reported immediately in the P&L.

根據 GAAP 會計準則，LTC 假設更新對健康和殘疾生活的影響將反映為損益表中的重新計量收益或損失，並根據群體進行關鍵差異。對於不盈利的上限群組，當前最佳估計的任何假設變化都將立即在損益表中報告。

For profitable uncapped cohorts, any changes would primarily impact the net premium ratio and therefore, would have a more muted impact on results in the quarter. We will update assumptions for the Choice II legal settlement in the fourth quarter. Because the Choice II settlement primarily impacts uncapped cohorts, any changes would have a muted income statement impact in the fourth quarter.

對於獲利的無上限群體來說，任何變化都將主要影響淨保費率，因此對本季業績的影響較小。我們將在第四季更新選擇 II 法律和解的假設。由於選擇 II 的和解主要影響無上限群體，因此任何變化都將對第四季度的損益表產生輕微影響。

This is in contrast to the large favorable impact I mentioned in the fourth quarter of 2022 when we updated assumptions largely for the PCS I and II settlement, which primarily impacted capped cohorts. While GAAP assumption updates are accounted for differently and capped versus uncapped cohorts, both legal settlements are expected to significantly reduce Genworth's LTC tail risk and therefore, be a net positive over the long term.

這與我在 2022 年第四季提到的巨大有利影響形成鮮明對比，當時我們主要更新了 PCS I 和 II 和解的假設，這主要影響了上限群體。雖然GAAP 假設更新的解釋方式有所不同，並且有上限和無上限群組的情況不同，但兩項法律和解預計將顯著降低Genworth 的LTC 尾部風險，因此從長遠來看，將產生淨積極影響。

Other long-term assumptions that we are reviewing for LTC include lapses, benefit utilization, mortality and in-force rate actions. We're also evaluating potential short-term impacts emerging after the pandemic and aligning near-term projections with recent experience. While work is ongoing, the LTC assumption updates could be negative in the aggregate as experience has been mixed.

我們正在審查的 LTC 的其他長期假設包括失誤、福利利用率、死亡率和有效率行動。我們也正在評估疫情後出現的潛在短期影響，並將近期預測與最近的經驗結合。雖然工作正在進行中，但由於經驗參差不齊，LTC 假設更新總體上可能是負面的。

For our life and annuity products, we expect to review lapse assumptions on universal life policies with secondary guarantees or ULSG, and as well as mortality assumptions, including mortality improvement. At approximately $4 billion, our ULSG block is relatively small compared to others in the industry and is a closed block that has not issued new business since 2016. Therefore, any impact would likely be smaller than what we've seen from others in the industry with larger blocks.

對於我們的壽險和年金產品，我們預計將審查帶有二級保證或 ULSG 的萬能壽險保單的失效假設，以及死亡率假設，包括死亡率改善。我們的ULSG 區塊規模約為40 億美元，與業內其他公司相比相對較小，並且是一個封閉區塊，自2016 年以來沒有發布新業務。因此，任何影響可能比我們從業內其他公司看到的影響要小具有更大的塊。

We will assess near-term trends together with our review of LTC mortality and emerging post pandemic trends as we continue to gather data to better understand the long-term implications of COVID. Again, work is ongoing, but the assumption updates for life and annuities, we are considering an aggregate could pressure our results in the fourth quarter.

隨著我們繼續收集數據以更好地了解新冠病毒的長期影響，我們將評估近期趨勢，同時審查長期照護者死亡率和疫情後出現的趨勢。同樣，工作仍在進行中，但壽險和年金的假設已更新，我們正在考慮總體可能會對我們第四季度的業績造成壓力。

In parallel with the product assumption reviews, we will also complete statutory cash flow testing for our life insurance companies in the fourth quarter. As a reminder, there are significant differences in the way assumption updates are reflected on a statutory basis compared to GAAP, including the concepts of regular unlocking of assumptions and cohorting under LDTI which do not exist under statutory accounting.

在產品假設審查的同時，我們也將在第四季完成壽險公司的法定現金流量測試。需要提醒的是，與 GAAP 相比，法定基礎上反映假設更新的方式存在顯著差異，包括 LDTI 下定期解鎖假設和分組的概念，而法定會計中不存在這些概念。

Another key difference is that under GAAP changes to all LTC assumptions are reflected in income, while on the statutory basis, generally only changes to our best estimate disabled life reserve assumptions are reflected in income. Assumptions impacting healthy lives are included in our cash flow testing margin review, which only impacts income if the margin falls below 0. While our process is not yet complete and significant work remains, our early assessment is that GLIC's margin should remain positive.

另一個主要區別是，根據公認會計準則，所有長期照護費用假設的變化都會反映在收入中，而根據法定基礎，通常只有我們最佳估計的傷殘人壽準備金假設的變化才會反映在收入中。影響健康生活的假設包含在我們的現金流量測試利潤率審查中，只有當利潤率低於0 時，才會影響收入。雖然我們的流程尚未完成並且仍有大量工作要做，但我們的早期評估是GLIC 的利潤率應維持為正值。

Certain of our ULSG products are subject to additional reserves on a statutory basis using the regulatory prescribed reinvestment rate from July 2022 to June 2023. Given the increasing rates during this period, we currently anticipate a favorable benefit from the reinvestment rate. From a statutory income perspective, we believe the reinvestment rate benefit will help offset potential negative assumption updates. We will discuss the results of our assumption reviews and statutory cash flow testing on our fourth quarter earnings call. Next, moving to our investment portfolio. We remain confident in our conservative positioning and believe we have the right strategy to remain resilient and navigate a challenging macro environment.

從2022年7月至2023年6月，我們的某些ULSG產品須依監管規定的再投資利率依法繳納額外準備金。鑑於在此期間利率不斷上升，我們目前預計再投資利率將帶來有利的收益。從法定收入的角度來看，我們認為再投資率的好處將有助於抵消潛在的負面假設更新。我們將在第四季財報電話會議上討論假設審查和法定現金流量測試的結果。接下來，轉向我們的投資組合。我們對保守的定位仍然充滿信心，並相信我們擁有正確的策略來保持彈性並應對充滿挑戰的宏觀環境。

Our portfolio holdings are summarized on Slide 16. The high interest rate environment continues to allow us to invest at attractive new money rates, which will benefit the portfolio over time. Average new money rates in the third quarter, including investments in alternatives were approximately 6.5% to 7%. The majority of our assets remain in investment-grade fixed maturities that are listed as available for sale.

我們的投資組合持股總結於投影片 16。高利率環境繼續使我們能夠以有吸引力的新貨幣利率進行投資，隨著時間的推移，這將使投資組合受益。第三季的平均新貨幣利率（包括另類投資）約為 6.5% 至 7%。我們的資產大部分仍處於投資等級固定期限，列為可供出售。

We generally buy and hold the bonds to support the U.S. Life Insurance companies' liabilities with unrealized gains and losses impacting equity through changes in other comprehensive income. Because the liabilities are very long duration, especially for LTC, we have very limited liquidity risk. Our commercial real estate holdings are concentrated in high-quality investment-grade assets and continue to perform very well.

我們通常會購買並持有債券來支持美國人壽保險公司的負債，未實現的損益透過其他綜合收益的變化影響股本。由於負債的久期非常長，尤其是LTC，因此我們的流動性風險非常有限。我們持有的商業房地產主要集中於優質投資等級資產，並持續表現出色。

In addition, we've continued to reduce our exposure to small- and medium-sized regional banks since the end of the first quarter. Turning to the holding company on Slide 17. We continue to return significant capital to shareholders via share repurchases in the third quarter, repurchasing 80 million at an average price of $5.69 per share and another 10 million in the month of October. We ended the third quarter with $232 million of cash and liquid assets. We received $26 million of capital from Enact and $59 million from intercompany tax payments in the quarter.

此外，自第一季末以來，我們繼續減少對中小型區域銀行的曝險。轉向幻燈片17 上的控股公司。我們在第三季度繼續透過股票回購向股東返還大量資本，以每股5.69 美元的平均價格回購了8,000 萬股，並在10 月又回購了1,000 萬股。第三季末，我們擁有 2.32 億美元的現金和流動資產。本季度，我們從 Enact 獲得了 2,600 萬美元的資本，並從公司間納稅中獲得了 5,900 萬美元。

We expect to receive a total of approximately $190 million to $210 million of net intercompany tax payments for the year. We expect to fully utilize our available foreign tax credits this year dependent on the taxable income generated by our subsidiaries. We expect to become a federal taxpayer this year. Tom described our capital allocation strategy, and I'll reiterate that our top priorities remain to invest in long-term growth through CareScout services, return cash to shareholders through our expanded share repurchase program went below intrinsic value and opportunistically pay down debt when attractive to us.

我們預計今年將收到總計約 1.9 億至 2.1 億美元的公司間淨稅。我們預計今年將根據我們子公司產生的應稅收入充分利用我們可用的外國稅收抵免。我們預計今年將成為聯邦納稅人。湯姆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透過CareScout 服務投資於長期成長，透過我們擴大的股票回購計劃向股東返還現金，低於內在價值，並在對股東有吸引力時機會主義地償還債務。我們。

We're pleased with the value created for shareholders through our share repurchase program. Through October, we've completed most 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, subject to our share price relative to our assessment of intrinsic value. The expansion to the program that we announced last quarter allows us to continue to return capital to shareholders as we head into 2024.

我們對透過股票回購計畫為股東創造的價值感到滿意。截至 10 月，我們已經完成了 2022 年 5 月開始的 3.5 億美元初始計劃的大部分，我們預計在今年年底前完成剩餘金額，具體取決於我們的股價相對於我們對內在價值的評估。我們上季宣布的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。

We will also consider opportunistically retiring debt when it's attractive relative to our other uses of capital. After reaching our holding company target last September, we strive to maintain a debt-to-capital ratio of 25% or below attributing no equity value to U.S. Life Insurance companies. As of the third quarter, our debt-to-capital ratio was below this target, which we view as optimal given our low debt service relative to our size.

當債務相對於我們的其他資本用途具有吸引力時，我們還將考慮機會性地償還債務。去年 9 月實現控股公司目標後，我們努力將債務與資本比率維持在 25% 或以下，並且不賦予美國人壽保險公司任何股權價值。截至第三季度，我們的債務與資本比率低於此目標，鑑於我們的償債相對於我們的規模較低，我們認為這是最佳目標。

Through the recent bondholder consent solicitation, which closed in October, we were able to amend a restrictive covenant that prevented us from paying down our 2066 hybrid, floating rate notes unless the balance on the 2034s was below $100 million. Under the amended covenant, we can now repay, redeem or repurchase $2,000 of principal amount of 2066 notes for each $1,000 principal amount of 2034 debt repaid.

透過最近於 10 月結束的債券持有人同意徵求，我們能夠修改一項限制性契約，該契約阻止我們償還 2066 年混合浮動利率票據，除非 2034 年的餘額低於 1 億美元。根據修訂後的契約，我們現在可以為每償還 1,000 美元本金的 2034 年債務償還、贖回或回購 2,000 美元的 2066 年票據本金。

In connection with this transaction, we repurchased $13.5 million principal amount of the 2034 notes at 90% of par value. This gives us access to repurchase $27 million of the 2066 notes at market value. We are pleased with the additional flexibility created by the amendment. After growth investments and share buybacks, we view opportunistic debt paydown as another available lever to drive shareholder value by purchasing the debt below par and further reducing Genworth's annual debt service obligations over time.

就本次交易而言，我們以票面價值的 90% 回購了 1,350 萬美元的 2034 年票據本金。這使我們能夠以市場價值回購 2,700 萬美元的 2066 年票據。我們對修正案帶來的額外彈性感到滿意。在成長投資和股票回購之後，我們認為機會主義債務償還是透過購買低於面額的債務並隨著時間的推移進一步減少 Genworth 的年度償債義務來推動股東價值的另一個可用槓桿。

In closing, we are delivering on our strategic priorities, while proactively managing our liabilities and risk. The multiyear rate action plan and the additional benefit from the 3 LTC legal settlements are enhancing our ability to honor policyholder commitments and stabilize the legacy LTC block. We see tremendous value in Enact as evidenced by its strong capital returns and our ability to grow CareScout over time and in our ability to drive shareholder value through capital returns.

最後，我們正在實現我們的策略重點，同時積極管理我們的負債和風險。多年利率行動計畫和 3 個 LTC 法律和解帶來的額外好處正在增強我們履行保單持有人承諾和穩定遺留 LTC 區塊的能力。我們看到 Enact 的巨大價值，這體現在其強勁的資本回報、我們不斷發展 CareScout 的能力以及我們透過資本回報推動股東價值的能力。

Now let's open up the line for questions.

現在讓我們開放提問熱線。

(Operator Instructions)

（操作員說明）

And we'll move to our first question. [Gordon] George with Ardent Financial as our first question.

我們將討論第一個問題。 [戈登]喬治，Ardent Financial 是我們的第一個問題。

Yes. So I have like 2 questions that I wanted to ask. First one is around that (inaudible) concern, but it seems like you've addressed that. So another question that I wanted to ask was around the negative (inaudible) at year-end. I think the balance was around $659 million as you're saying that you see this finance you can really have dividend or money being used for some of your life insurance companies. So I wanted to ask how far -- where is that balance at the moment? And are you addressing any -- can you expect to see any changes around like the (inaudible) from those companies intention?

是的。所以我想問兩個問題。第一個是圍繞著這個（聽不清楚）的問題，但似乎你已經解決了這個問題。所以我想問的另一個問題是關於年底的負面（聽不清楚）。我認為餘額約為 6.59 億美元，正如您所說，您看到這筆資金確實可以為您的一些人壽保險公司帶來股息或資金。所以我想問一下，目前這種平衡在哪裡？您是否正在解決任何問題 - 您是否可以期望看到任何變化，例如這些公司意圖的（聽不清楚）？

So you were breaking up a little bit, so I'm not sure I got all of the question, but -- so our plan at this point for excess cash is to invest in our CareScout business to grow that, and we're making good progress on that and to buy back shares. At this point, we do not have -- we don't pay a regular dividend nor do we anticipate doing that in the near future given that when we talk to our shareholders, the overwhelming majority of them would prefer that we return excess cash and share repurchases versus dividends. So that's why we've chosen to return capital through the buyback program.

所以你們分手了一點，所以我不確定我是否回答了所有問題，但是 - 所以我們目前的多餘現金計劃是投資於我們的 CareScout 業務以發展該業務，我們正在做在此方面取得良好進展併回購股票。目前，我們不支付定期股息，也不預計在不久的將來這樣做，因為當我們與股東交談時，絕大多數人希望我們返還多餘的現金，並且股票回購與股息。這就是我們選擇透過回購計畫返還資本的原因。

Okay. And then my second question was just around the negative unassigned surplus. Last year, year end it was around [$849 million], you have an update in terms of like where is (inaudible)?

好的。然後我的第二個問題是關於負的未分配盈餘。去年年底，大約是 [8.49 億美元]，您有更新，例如在哪裡（聽不清楚）？

Gordon, this is Jerome Upton. Thank you for the question. Our unassigned surplus in our GLIC, which is our consolidating life insurance company, it's not positive, it's negative, and it's roughly around $700 million. And as you probably know, when you have negative unassigned surplus, it's very difficult to get any type of dividend out of those regulated entities. And I think I would just highlight for you in Tom's prepared remarks, he actually indicated that we would not put capital in the U.S. Life business nor extract capital out of the U.S. Life business. So the numbers that I have are the unassigned surplus is actually negative $700 million.

戈登，這是傑羅姆·厄普頓。感謝你的提問。我們的 GLIC（我們的合併人壽保險公司）的未分配盈餘不是正值，而是負值，大約 7 億美元左右。正如您可能知道的那樣，當未分配盈餘為負值時，很難從這些受監管實體中獲得任何類型的股息。我想我想在湯姆準備好的演講中向大家強調，他實際上表示我們不會向美國壽業務投入資金，也不會從美國壽業務中提取資金。所以我掌握的數字是未分配盈餘其實是負 7 億美元。

(Operator Instructions)

（操作員說明）

Ladies and gentlemen, as there are no further questions, I will now turn the call back over to Mr. McInerney for closing comments.

女士們、先生們，由於沒有其他問題了，我現在將把電話轉回給麥金納尼先生進行總結評論。

Thank you very much, Lisa, and thanks to all of you for joining the call today. In closing, we are very pleased with Enact's strong operating performance, our progress with CareScout, the progress we've made on Genworth's 3 strategic priorities, and we are confident in our long-term strategy. I want to thank all of our investors and others on the call for your interest and support to Genworth and we'll see you next quarter. And with that, I'll turn the call back over to Lisa to close the call.

非常感謝你，麗莎，也感謝大家今天加入電話會議。最後，我們對 Enact 強勁的營運業績、我們與 CareScout 的進展以及我們在 Genworth 的 3 個策略重點方面取得的進展感到非常滿意，並且我們對我們的長期策略充滿信心。我要感謝所有投資者和其他參加電話會議的人對 Genworth 的興趣和支持，我們下個季度再見。然後，我會將電話轉回給麗莎以結束通話。

Ladies and gentlemen, this concludes Genworth Financial's third quarter conference call. Thank you for your participation. At this time, the call will end.

女士們先生們，Genworth Financial 第三季電話會議到此結束。感謝您的參與。這時，通話就會結束。