Genworth Financial Inc (GNW) 2023 Q4 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the Genworth Financial's Fourth quarter 2023 earnings conference call. My name is Jenny, and I will be your coordinator today. (Operator instructions) As a reminder, the conference is being recorded for replay purposes. (Operator Instructions)

早安，女士們，先生們。歡迎參加 Genworth Financial 2023 年第四季財報電話會議。我叫珍妮，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, sir.

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，先生。

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

謝謝你，早安。歡迎參加 Genworth 2023 年第四季財報電話會議。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 the call up for a question-and-answer period. In addition to our speakers, Jamala Arlen, President and CEO of our US Life Insurance business; and Kelly Saltzgaper, Chief Investment Officer, will 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，我們的美國人壽保險業務總裁兼執行長 Jamala Arlen；首席投資長 Kelly Saltzgaper 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.

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。

And now, I'll turn the call over to our President and CEO, Tom McInerney.

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 very much, Brian. Good morning, everyone, and thank you for joining our fourth-quarter earnings call.

非常感謝你，布萊恩。大家早安，感謝您參加我們的第四季財報電話會議。

Before I get to the quarter, I want to welcome Jamala Arlan to her first earnings call in her official capacity as the new President and CEO of our US Life Insurance business. Jamala has been with Genworth for 18 years. She's one of the top actuaries in the LTC insurance industry, and she's been an integral leader in both the development and execution of our multi-year rate action plan. I'm very excited to work with her in her new and broader role.

在介紹本季之前，我想歡迎賈馬拉·阿蘭 (Jamala Arlan) 以美國人壽保險業務新任總裁兼首席執行官的正式身份參加她的第一次財報電話會議。Jamala 已在 Genworth 工作 18 年。她是長期照護保險行業的頂級精算師之一，並且一直是我們多年費率行動計劃的製定和執行過程中不可或缺的領導者。我很高興能與她一起擔任更廣泛的新角色。

I also want to thank Brian Haendiges for his tremendous contributions and accomplishments at Genworth. As you know, Brian recently retired.

我還要感謝 Brian Haendiges 在 Genworth 所做的巨大貢獻和成就。如你所知，布萊恩最近退休了。

In 2023, Genworth made outstanding progress against our three strategic priorities, which enabled us to return significant value to our shareholders. Before I discuss these accomplishments, I'll quickly review our financial performance.

2023 年，Genworth 在我們的三大策略重點方面取得了突出進展，使我們能夠為股東回報可觀的價值。在討論這些成就之前，我將快速回顧我們的財務表現。

For the full year, net income was $76 million or $0.16 per diluted share, and adjusted operating income was $41 million or $0.09 per diluted share. These results were led by Enact, which had an outstanding year, delivering adjusted operating income of $552 million for Genworth.

全年淨利潤為 7,600 萬美元，即稀釋後每股收益 0.16 美元，調整後營業收入為 4,100 萬美元，即稀釋後每股收益 0.09 美元。這些業績由 Enact 領銜，該公司今年表現出色，為 Genworth 帶來了 5.52 億美元的調整後營業收入。

Enact continues to execute on its strategy, maintaining a strong balance sheet and high-quality books of insurance enforced. Enact also expanded its platform in 2023 with the launch of Enact [3] to pursue opportunities in the mortgage insurance market.

Enact 繼續執行其策略，維持強勁的資產負債表和高品質的保險帳簿。Enact 也於 2023 年推出 Enact [3] 擴展了其平台，以尋求抵押貸款保險市場的機會。

In the fourth quarter, Genworth reported a net loss of $212 million or $0.40 per diluted share and an adjusted operating loss of $230 million or $0.51 per diluted share. These results were driven by losses in both life and annuities and in LTC, primarily due to the impact of our annual assumption reviews as well as quarterly actual to expected experience under new LDTI GAAP accounting standards, which Jerome will discuss in more detail.

第四季度，Genworth 淨虧損 2.12 億美元，即稀釋後每股 0.40 美元，調整後營運虧損為 2.3 億美元，即稀釋後每股 0.51 美元。這些結果是由人壽保險、年金保險和長期保險保險的損失推動的，這主要是由於我們的年度假設審查以及新LDTI GAAP 會計標準下的季度實際經驗與預期經驗的影響，傑羅姆將對此進行更詳細的討論。

On a statutory accounting basis, pre-tax income for the US life insurance companies was $148 million for the fourth quarter and $433 million for the full year, driven by a net benefit in variable annuities from better equity markets and higher interest rates and a net favorable impact of assumption updates. The $1.6 billion pre-tax earnings benefits in 2023 from LTC in-force rate actions and settlements were offset by higher claims as the blocks age. Complete statutory results for our US life insurance companies who will be available when we file our fourth-quarter statutory statements later this month.

在法定會計基礎上，美國壽險公司第四季稅前收入為1.48 億美元，全年稅前收入為4.33 億美元，這主要是受到股市改善、利率上升帶來的可變年金淨收益以及淨收益的推動。2023 年，LTC 有效的利率訴訟和和解帶來的 16 億美元稅前收益被隨著區塊老化而增加的索賠額所抵消。我們的美國人壽保險公司的完整法定結果將在我們本月稍後提交第四季度法定報表時提供。

Enact had a very strong fourth quarter with adjusted operating income of $129 million to Genworth. We're pleased with Enact's continued strong operating performance and capital levels. Since Enact's IPO, Genworth has received approximately $615 million in capital from Enact, including $128 million in the fourth quarter. Cash flows from Enact have fueled our share repurchase program and our growth in CareScout.

Enact 第四季業績非常強勁，Genworth 調整後營業收入為 1.29 億美元。我們對 Enact 持續強勁的營運表現和資本水準感到滿意。自 Enact 首次公開募股以來，Genworth 已從 Enact 獲得約 6.15 億美元的資金，其中包括第四季的 1.28 億美元。Enact 的現金流量推動了我們的股票回購計劃和 CareScout 的成長。

Moving to our strategic progress. We continue to further strengthen the financial and operational capabilities of our legacy LTC insurance business. We're achieving this primarily through our multi-year 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 and ensure the self-sustainability of the life companies.

轉向我們的策略進展。我們持續進一步加強傳統長期照護保險業務的財務和營運能力。我們主要透過我們的多年費率行動計劃（MYRAP）來實現這一目標，這是我們擁有的最有效的工具，可以使我們的傳統長期護理保險投資組合在未來的基礎上實現經濟收支平衡，並確保壽險公司的自我永續發展。

2023 was a very successful year for MYRAP on a few different fronts. First, we achieved a total of $354 million in premium rate increase approvals in 2023, well above our forecast of $275 million. In the fourth quarter, premium rate increases totaled $127 million from 13 states with an average percentage increase of 75%, which is one of the strongest quarterly percentage increases we've ever achieved.

2023 年對於 MYRAP 在幾個不同方面都是非常成功的一年。首先，我們在 2023 年批准了總計 3.54 億美元的保費上調，遠高於我們預測的 2.75 億美元。第四季度，13 個州的保費上漲總計 1.27 億美元，平均百分比上漲 75%，這是我們有史以來實現的最強勁的季度百分比上漲之一。

We also saw a significant approvals in our PCS II policies as a result of the new National Association of Insurance Commissioners', or NAIC's, process to develop a multi-state actuarial review to address state inequalities. Perhaps most importantly, in 2023, the value of our MYRAP progress achieved to date increased by $4.5 billion, which reduces the remaining amount currently left to be achieved by $1.5 billion.

由於全國保險專員協會 (NAIC) 制定多州精算審查以解決各州不平等問題的新流程，我們的 PCS II 保單也獲得了重大批准。也許最重要的是，到 2023 年，我們迄今為止取得的 MYRAP 進展價值增加了 45 億美元，這使目前剩餘的金額減少了 15 億美元。

In the past two years, we've reduced the remaining amount left to be achieved by almost $4 billion. While Jerome will discuss our 2023 efforts in more detail, I wanted to note our significant progress and continued momentum on this important strategic priority.

過去兩年，我們已將剩餘金額減少了近 40 億美元。雖然傑羅姆將更詳細地討論我們 2023 年的努力，但我想指出我們在這一重要戰略優先事項上取得的重大進展和持續勢頭。

As we've said before, we manage the US life insurance companies on a standalone basis. They operate as a closed system, leveraging existing reserves and capital, current premiums, as well as future new premiums under the LTC MYRAP plan to cover future claims and other obligations. We will not put capital into life insurance companies. And given the long-tail nature of our long-term care insurance policies with peak claim years still well over a decade away, we also do not expect capital returns from this segment.

正如我們之前所說，我們獨立管理美國人壽保險公司。它們作為一個封閉系統運作，利用現有儲備金和資本、當前保費以及 LTC MYRAP 計劃下的未來新保費來支付未來的索賠和其他義務。我們不會投入資金投資壽險公司。考慮到我們的長期照護保險保單的長尾性質，索賠高峰期還需要十多年，我們也不期望該領域的資本回報。

Our second strategic priority is to leverage Genworth's LTC expertise to develop new innovative aging services and solutions. On this front, CareScout achieved several key milestones in 2023. After our initial launch in Texas, the CareScout Quality Network is now available in 20 states. We continue to add providers to the network that meet our quality credentialing standards and that agree to negotiated discount rates.

我們的第二個策略重點是利用 Genworth 的 LTC 專業知識來開發新的創新老化服務和解決方案。在這方面，CareScout 在 2023 年實現了幾個關鍵里程碑。在德州首次推出後，CareScout 品質網路現已在 20 個州推出。我們繼續在網路中新增符合我們的品質認證標準並同意協商折扣率的供應商。

At the end of 2023, we had 125 providers in the network. And by the end of 2024, we anticipate we will have CareScout Quality Network home care coverage from approximately 600 providers that will cover two-thirds of the aged 65-plus census population in the US and also approximately two-thirds of our 1 million LTC policies.

截至 2023 年底，我們的網路中有 125 家供應商。到2024 年底，我們預計將獲得來自約600 家提供者的CareScout Quality Network 家庭護理覆蓋，這將覆蓋美國65 歲以上人口普查人口的三分之二以及我們100 萬長期護理人員中的約三分之二政策。

With the discounted rates negotiated, we will bend the future LTC claim curve and reduce future LTC claim cost. Genworth policies will also be able to extend their available benefits, particularly where they have limited benefits. We continue to forecast claim savings on Genworth LTC claim cost over time of between $1 billion to $1.5 billion on a net present value basis, driving further risk mitigation for the legacy LTC block.

透過協商折扣費率，我們將彎曲未來長期照護索賠曲線並降低未來長期照護索賠成本。Genworth 保單還能夠擴大其可用福利，特別是在福利有限的情況下。我們繼續預測，以淨現值計算，隨著時間的推移，Genworth LTC 索賠成本將節省 10 億至 15 億美元，從而進一步緩解傳統 LTC 區塊的風險。

In addition, we have been focused on building the foundation necessary to re-enter the long-term care insurance business with new funding solutions in 2024 through our new subsidiary, CareScout Insurance. We are focused on product development and pricing, identification of a highly rated reinsurance partner, regulatory engagement, and operational readiness as we prepare to launch new LTC insurance products later in 2024.

此外，我們一直致力於透過我們的新子公司 CareScout Insurance 在 2024 年透過新的融資解決方案重新進入長期照護保險業務奠定必要的基礎。我們準備在 2024 年稍後推出新的 LTC 保險產品，重點關注產品開發和定價、尋找高評價的再保險合作夥伴、監管參與和營運準備。

Moving to our third strategic priority. 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 in 2023, and we remain committed to the execution of our buyback program.

轉向我們的第三個策略重點。我們繼續從 Enact 分配多餘現金，以推動 Genworth 的長期股東價值。我們在 2023 年透過股票回購向股東返還了大量資本，我們仍然致力於執行我們的回購計劃。

In July of last year, the Genworth Board authorized an additional $350 million in share repurchase, and significantly expanding our original share repurchase operation, which we first announced in May of 2022. This step was reflective of the transformative progress we've made as a company in recent years, our strong progress on buybacks, and the Board's confidence in our strategy and in our future.

去年 7 月，Genworth 董事會額外授權進行 3.5 億美元的股票回購，顯著擴大了我們於 2022 年 5 月首次宣布的原始股票回購操作。這一步驟反映了我們作為一家公司近年來取得的變革性進展、我們在回購方面的強勁進展以及董事會對我們的策略和未來的信心。

Since the initial authorization in May 2022, we have repurchased a total of approximately $384 million worth of shares at an average price of $5.33 per share as of February 13, and reduced outstanding shares by 13% from approximately 511 million shares to 443 million shares outstanding.

自2022年5月首次授權以來，截至2月13日，我們已以每股5.33美元的平均價格回購了價值總計約3.84億美元的股票，並將流通股從約5.11億股減少到4.43億股，減少了13% 。

We also invested approximately $30 million in CareScout services in 2023, in line with our guidance. We plan to invest an additional approximately $35 million in 2024 as we build out the CareScout Quality Network. We will continue to prudently scale and diversify CareScout services in a way that we leverage our intellectual property, successfully drive claim savings for Genworth Life Insurance Company in Pitney, and introduce new insurance offerings to the market and drive long-term growth.

根據我們的指導，我們還在 2023 年向 CareScout 服務投資了約 3,000 萬美元。我們計劃在 2024 年額外投資約 3,500 萬美元，用於建立 CareScout 品質網路。我們將繼續審慎地擴大 CareScout 服務規模並使其多元化，利用我們的智慧財產權，成功推動皮特尼 Genworth Life Insurance Company 的索賠節省，並向市場推出新的保險產品並推動長期成長。

Our 2023 achievements have improved Genworth's financial strength, evidenced by our ratings upgrades from both Moody's and S&P, and allowed us to enter 2024 with greater financial flexibility and continued confidence in our long-term strategy to invest in growth, primarily through CareScout, and continue returning capital to our shareholders.

我們2023 年的成就提高了Genworth 的財務實力，穆迪和標準普爾對我們的評級上調證明了這一點，並使我們能夠以更大的財務靈活性進入2024 年，並對我們主要透過CareScout 投資成長的長期策略保持信心，並繼續將資本返還給我們的股東。

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

然後，我會將電話轉給傑羅姆。

Thank you, Tom, and good morning, everyone. We completed our annual LTC and life insurance assumption reviews in the fourth quarter under the new US GAAP accounting standard, LDTI. While our US GAAP earnings were pressured by these assumption updates, I'm very pleased with Genworth's strategic progress in 2023, the ongoing value creation delivered by Enact, and our strong momentum on LTC in-force rate actions, which helped drive positive statutory income in our US life companies for the year.

謝謝你，湯姆，大家早安。我們在第四季度根據新的美國 GAAP 會計準則 LDTI 完成了年度長期TC 和人壽保險假設審查。雖然我們的美國公認會計原則收益受到這些假設更新的壓力，但我對Genworth 在2023 年的戰略進展、Enact 持續創造的價值以及我們在LTC 有效利率行動方面的強勁勢頭感到非常滿意，這有助於推動正法定收入今年我們的美國壽險公司。

I'll discuss Genworth's results and drivers in more detail, including Enact's performance and the results of our assumption reviews. Then I'll provide an update on our investment portfolio and capital position before we open the call for Q&A.

我將更詳細地討論 Genworth 的結果和驅動因素，包括 Enact 的表現和我們的假設審查的結果。然後，在我們開始問答之前，我將提供有關我們的投資組合和資本狀況的最新資訊。

Tom covered our consolidated financial results, so I'll start with Enact's performance on slide 6. Enact delivered very strong fourth-quarter and full-year results, including high-quality growth in its insured portfolio, increasing investment income and strong profitability. Enact's adjusted operating income of $129 million was up 8% versus the prior year.

Tom 介紹了我們的綜合財務業績，因此我將從投影片 6 上的 Enact 業績開始。Enact 交付了非常強勁的第四季度和全年業績，包括其保險投資組合的高品質成長、投資收入的增加和強勁的獲利能力。Enact 的調整後營業收入為 1.29 億美元，比上年增長 8%。

Primary insurance in-force increased 6% year-over-year to a record $263 billion, driven by new insurance written and continued elevated persistency. Genworth share of Enact's book value, including AOCI, has increased from $3.4 billion at the end of 2022 to $3.8 billion at the end of 2023. While at the same time, Enact has delivered significant dividends to Genworth. The business continues to operate from a position of strength and has had strong loss performance, which has allowed it to release excess reserves.

受新承保保險和持續性持續提高的推動，有效主險保額年增 6%，達到創紀錄的 2,630 億美元。Genworth 在 Enact 帳面價值（包括 AOCI）中所佔份額已從 2022 年底的 34 億美元增加到 2023 年底的 38 億美元。同時，Enact 也為 Genworth 帶來了可觀的股息。該業務繼續保持強勢運營，並出現了強勁的虧損表現，這使其能夠釋放超額準備金。

As shown on slide 7, Enact had a favorable $53 million reserve release in the fourth quarter, which drove a loss ratio of 10%. 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 $55 million and $42 million, respectively.

如投影片 7 所示，Enact 在第四季度釋放了 5,300 萬美元的有利準備金，導致虧損率達到 10%。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都包括有利的淨儲備釋放，總額分別為 5,500 萬美元和 4,200 萬美元。

Enact has a strong estimated PMIER sufficiency ratio of 161%, approximately $1.9 billion above PMIERs requirements. Enact continues to deliver strong cash flows to Genworth, the combination of Enact's quarterly dividend, its special dividend, and its share repurchase program generated a total of $128 million in proceeds to Genworth in the fourth quarter.

Enact 預計 PMIER 充足率高達 161%，比 PMIER 要求高出約 19 億美元。Enact 繼續為 Genworth 提供強勁的現金流，Enact 的季度股息、特別股息和股票回購計劃相結合，在第四季度為 Genworth 帶來了總計 1.28 億美元的收益。

For the full year 2023, Genworth received $245 million from Enact, which enabled us to advance Genworth's strategic initiatives and capital return program. In 2024, Enact has stated that it expects its total capital return will be similar to what it delivered in 2023.

2023 年全年，Genworth 從 Enact 獲得了 2.45 億美元，這使我們能夠推進 Genworth 的戰略舉措和資本回報計劃。Enact 表示，預計 2024 年的總資本回報率將與 2023 年的水準相似。

Turning to long-term care insurance, starting on slide 8. We continue to significantly reduce the tail risk on our legacy LTC block with progress on our multi-year rate action plan, or MYRAP, and legal settlements. As of the end of 2023, we have achieved in-force rate actions worth approximately $28 billion on a net present value basis since 2012 and have seen a cumulative policyholder response rate of 51% to reduce benefits. As Tom mentioned, the year-over-year increase in the economic value of our rate actions achieved to date is significant.

轉向長期照護保險，從幻燈片 8 開始。隨著我們的多年利率行動計劃 (MYRAP) 和法律和解取得進展，我們將繼續大幅降低傳統 LTC 區塊的尾部風險。自 2012 年以來，截至 2023 年底，我們已實施以淨現值計算價值約 280 億美元的有效利率行動，且投保人對減少福利的累積回應率為 51%。正如湯姆所提到的，迄今為止我們的利率行動所實現的經濟價值年增率是顯著的。

As shown on slide 9, this $28 billion reflects $4.5 billion in growth from last year. $2 billion of the increase is attributable to our 2023 rate action approvals and settlement implementations. The benefit reductions associated with these actions not only provide stability to our financials in the period implemented but also continue to provide risk resiliency going forward as the blocks reach peak claim years, helping to protect against any potential deterioration in the future.

如投影片 9 所示，這 280 億美元反映了去年 45 億美元的成長。其中 20 億美元的成長歸因於我們 2023 年費率行動的批准和和解的實施。與這些行動相關的福利減少不僅使我們在實施期間的財務狀況保持穩定，而且隨著索賠金額達到高峰年份，繼續提供未來的風險抵禦能力，有助於防止未來出現任何潛在的惡化。

As such, the value of the benefit reductions connected with our previously achieved rate actions and settlements also increased by an additional $2.5 billion in 2023 from the impact of our assumption updates and ongoing risk reduction measures. The remaining amount we currently have left to achieve is approximately $5 billion which has decreased approximately $1.5 billion from this time last year. Our achieved value reflects progress of 84% toward our latest estimate of approximately $33 billion for the total net present value of premium increases and benefit reductions contemplated in our MYRAP.

因此，由於我們的假設更新和持續的風險降低措施的影響，與我們先前實現的利率行動和和解相關的福利減少的價值在 2023 年也額外增加了 25 億美元。我們目前尚未完成的剩餘金額約為 50 億美元，比去年同期減少了約 15 億美元。我們實現的價值反映了我們最新估計的 MYRAP 中保費增加和福利減少的淨現值總額約為 330 億美元，進步了 84%。

Slides 10 and 11 show more details on the filings approved in recent quarters as well as the 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 MYRAP, recent legal settlements have further reduced risk associated with our legacy LTC book.

幻燈片10 和11 顯示了最近幾個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 MYRAP 之外，最近的法律和解進一步降低了與我們遺留的 LTC 帳簿相關的風險。

In connection with these settlements, many policyholders have elected to reduce their benefits in order to reduce or eliminate their premiums, which allows them to maintain meaningful coverage while reducing Genworth's tail risk on these policies and further protecting our ability to pay claims. The PCS I and II settlement was materially completed as of the end of the quarter. The third and final settlement on our large Choice II block will continue throughout most of 2024 and will further reduce risk through benefit reduction options.

與這些和解相關，許多保單持有人選擇減少福利，以減少或消除保費，這使他們能夠維持有意義的承保範圍，同時減少 Genworth 對這些保單的尾部風險，並進一步保護我們支付索賠的能力。截至本季末，PCS I 和 II 的結算已基本完成。我們大型 Choice II 區塊的第三次也是最後一次和解將在 2024 年的大部分時間持續進行，並將透過福利減少選項進一步降低風險。

Long-term care insurance GAAP results are covered on slide 12. Our LTC segment reported an adjusted operating loss of $151 million in the fourth quarter compared to an adjusted operating loss of $71 million in the prior quarter and adjusted operating income of $204 million in the prior year.

長期照護保險 GAAP 結果請參閱投影片 12。我們的 LTC 部門第四季調整後營運虧損為 1.51 億美元，而上一季調整後營運虧損為 7,100 萬美元，上年調整後營運收入為 2.04 億美元。

In the fourth quarter, LTC had a liability remeasurement pre-tax loss of $188 million, including a $127 million loss on actual to expected experience, principally on our capped cohorts. The experience during the quarter was related to higher claims and unfavorable timing impacts of the PCS I and II legal settlement. Despite the quarterly variation in experience, as I noted, this settlement is now materially complete and has been very favorable to Genworth on a cumulative basis.

第四季度，LTC 的負債重新計量稅前損失為 1.88 億美元，其中實際與預期經驗損失 1.27 億美元，主要是針對我們的上限群體。本季的經驗與較高的索賠額以及 PCS I 和 II 法律和解的不利時間影響有關。正如我所指出的，儘管體驗按季度有所變化，但和解現已基本完成，並且從累積的角度來看，對 Genworth 非常有利。

For the full year 2023, the total liability remeasurement loss from actual to expected experience was $269 million, with a quarterly average of about $65 million. Though this quarterly average represented less than 0.5% of our total liability for future policy benefits of approximately $42 billion, we expect volatility at this average level could continue, particularly for our capped cohorts, and believe this could be a main driver of our quarterly earnings pressure for LTC in 2024. This potential impact will vary based on actual experience and seasonal trends.

2023年全年，從實際經驗到預期經驗的負債重新計量損失總額為2.69億美元，季度平均值約為6500萬美元。儘管本季平均值僅占我們約420 億美元的未來保單福利總負債的不到0.5%，但我們預計這一平均的波動可能會持續下去，特別是對於我們的上限群體而言，並相信這可能是我們季度收益的主要驅動力2024 年 LTC 面臨的壓力。這種潛在影響將根據實際經驗和季節性趨勢而有所不同。

Importantly, the quarterly US GAAP fluctuations do not impact cash flows our long-term economics or the way we manage the LTC business. We continue to primarily manage the LTC business by seeking to maximize net present value economics under the MYRAP. We believe statutory pre-tax results better reflect our execution and fully reflect the performance of all books of business as the concept of capped versus uncapped cohorts does not exist.

重要的是，美國公認會計準則的季度波動不會影響我們的長期經濟現金流或我們管理 LTC 業務的方式。我們繼續透過在 MYRAP 下尋求最大化淨現值經濟來主要管理 LTC 業務。我們認為，法定稅前業績更好地反映了我們的執行情況，並充分反映了所有業務帳簿的業績，因為不存在上限與不上限群體的概念。

As I mentioned, this is the first quarter that we are reporting long-term assumption updates for US GAAP under the new LDTI accounting standard. As a reminder, we no longer perform loss recognition testing for our LTC active life reserves. LTC assumptions are now reflected at best estimate with any changes recorded through our income statement.

正如我所提到的，這是我們根據新的 LDTI 會計準則報告美國公認會計原則長期假設更新的第一季。謹此提醒，我們不再對 LTC 活躍壽險儲備進行損失確認測試。LTC 假設現在反映了最佳估計，並透過我們的損益表記錄了任何變化。

LTC assumption updates in the fourth quarter resulted in an additional $61 million pre-tax remeasurement loss in LTC, as shown on slide 13, compared to a $303 million remeasurement gain in the fourth quarter of 2022. The gain in 2022 was largely related to the PCS I and II legal settlement, which primarily impacted capped cohorts. We made a similar assumption update to reflect the positive impact of the Choice II legal settlement in the fourth quarter. However, the P&L impact was muted because this settlement primarily impacted uncapped cohorts.

如投影片 13 所示，第四季 LTC 假設更新導致 LTC 額外產生 6,100 萬美元的稅前重新計量損失，而 2022 年第四季的重新計量收益為 3.03 億美元。2022 年的收益很大程度上與 PCS I 和 II 法律和解有關，這主要影響了上限群體。我們進行了類似的假設更新，以反映第四季度選擇 II 法律和解的正面影響。然而，由於這項和解主要影響的是無上限群體，因此對損益的影響不大。

The assumption changes implemented better align near-term projections with our recent experience for cost of care, mortality, incidents and lapses for our healthy lives, which had a net unfavorable impact in the fourth quarter. We also updated our disabled life mortality assumption to reflect continued favorable expectations over the next few years as we emerge from COVID.

實施的假設變更更好地使近期預測與我們最近在護理成本、死亡率、事故和健康生活失誤方面的經驗保持一致，這在第四季度產生了不利的淨影響。我們也更新了殘疾人生命死亡率假設，以反映未來幾年隨著我們擺脫新冠疫情的持續有利預期。

Based on favorable recent rate increase, approval, experience, and feedback from regulators, we have updated our assumption for future approvals and benefit reductions to reflect additional future value. This assumption update demonstrates our confidence and expectation of continued success and achieving actuarially justified LTC rate increases.

根據近期有利的升息、批准、經驗和監管機構的回饋，我們更新了對未來批准和福利減少的假設，以反映額外的未來價值。這項假設更新顯示了我們對持續成功並實現精算合理的長期照護費率成長的信心和期望。

Unlike the GAAP earnings impact resulting from LDTI, updates to best estimate assumptions for LTC healthy lives are reflected in cash flow testing margin on a statutory basis. However, assumption updates for disabled life reserves are reflected in statutory income similar to GAAP. The assumption updates and cash flow testing resulted in a net $58 million increase in statutory reserves.

與 LDTI 對 GAAP 收益的影響不同，LTC 健康生活的最佳估計假設的更新反映在法定的現金流量測試利潤中。然而，與公認會計準則類似，身心障礙者壽險準備金的假設更新也反映在法定收入中。假設更新和現金流量測試導致法定準備金淨增加 5,800 萬美元。

I will now turn to our Life and Annuities segment GAAP results on slide 14. The segment reported an adjusted operating loss of $183 million, driven by an adjusted operating loss and life insurance of $206 million, partially offset by adjusted operating income of $9 million from fixed annuities and $14 million from variable annuities.

我現在將轉向幻燈片 14 上的人壽和年金部分 GAAP 結果。該部門報告調整後經營虧損為1.83 億美元，主要由調整後經營虧損和人壽保險2.06 億美元推動，部分被固定年金調整後營業收入900 萬美元和可變年金調整後營業收入1400 萬美元所抵消。

In life insurance, results were primarily driven by unfavorable long-term assumption updates which had a pre-tax impact of $226 million. Mortality was also unfavorable compared to the prior quarter and prior year. The DAC amortization expense was slightly lower than the prior year due to lower lapses and block runoff. Unlike LTC, which is split approximately 50-50 between capped and uncapped cohorts, currently, the term life insurance business is primarily in uncapped cohorts, which mutes the impact of the actual to expected experience.

在人壽保險領域，業績主要是由不利的長期假設更新推動的，該更新產生了 2.26 億美元的稅前影響。與上一季和前一年相比，死亡率也不利。由於失誤和區塊徑流減少，DAC 攤提費用略低於去年。與 LTC 不同的是，LTC 在上限和無上限群體之間約佔 50-50 分，目前，定期壽險業務主要集中在無上限群體中，這削弱了實際體驗對預期體驗的影響。

Fixed annuities results were down versus the prior quarter due to less favorable fixed payout annuity mortality and down versus the prior year from lower net spreads. Variable annuities were up versus the prior quarter and prior year due to the favorable impact from assumption updates in the fourth quarter.

由於固定支付年金死亡率較不有利，固定年金業績較上一季下降，而淨利差較低則較上年下降。由於第四季度假設更新的有利影響，可變年金較上一季和上一年有所上升。

As shown on slide 15, the $226 million life assumption impact primarily reflected unfavorable updates to persistency assumptions for certain universal life products with secondary guarantees, or ULSG, and unfavorable mortality updates, including more modest mortality improvement in term and UL products.

如投影片15 所示，2.26 億美元的壽險假設影響主要反映了對某些具有二級保證的萬能壽險產品（ULSG）的持續性假設的不利更新，以及不利的死亡率更新，包括期限和UL產品的死亡率改善較為溫和。

These updates are similar to those made by other insurers. However, 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, leading to a smaller relative impact. The impact also reflects an expectation that mortality across all of our life products will remain elevated in the short-term as we emerge from the pandemic, similar to the adjustment made to LTC disabled life mortality.

這些更新與其他保險公司的更新類似。然而，我們的 ULSG 區塊規模約為 40 億美元，與業內其他區塊相比規模相對較小，而且是一個封閉區塊，自 2016 年以來沒有發布新業務，因此相對影響較小。這一影響也反映出一種預期，即隨著我們擺脫大流行，我們所有壽險產品的死亡率在短期內仍將保持較高水平，類似於對長期照護者殘疾生命死亡率所做的調整。

Assumptions for universal life and term universal life were always on the best estimate basis with changes recorded through income, as was the case under the old accounting guidance. And now under LDTI, assumption updates to our term life insurance business also impact income instead of loss recognition testing margin.

萬能壽險和定期萬能壽險的假設始終基於最佳估計，並透過收入記錄變化，就像舊會計準則下的情況一樣。現在，根據 LDTI，我們定期人壽保險業務的假設更新也會影響收入，而不是損失確認測試邊際。

Under GAAP accounting, these liability assumption updates were only partially offset by a favorable update in our UL products for the current interest rate environment. However, statutory updates in life were net favorable due to a significant increase in the regulatory prescribed reinvestment rate in our ULSG products, which more than offset the other liability assumption changes.

根據 GAAP 會計準則，這些負債假設更新僅由我們針對當前利率環境的 UL 產品的有利更新所部分抵銷。然而，由於我們的 ULSG 產品監管規定的再投資率大幅提高，壽險的法定更新是淨有利的，這遠遠抵消了其他責任假設的變化。

Note that for both life and LTC, our assumptions do not reflect any potential long-term impacts from COVID as we continue to monitor emerging experience. Rounding out the fourth-quarter GAAP results, Corporate and Other reported an adjusted operating loss of $25 million, up from $18 million in the prior quarter, reflecting growth investments in CareScout and taxes.

請注意，對於人壽保險和長期照護保險來說，隨著我們繼續監測新出現的經驗，我們的假設並未反映新冠疫情的任何潛在長期影響。在第四季度 GAAP 業績結束後，企業及其他部門報告調整後營運虧損為 2,500 萬美元，高於上一季的 1,800 萬美元，反映了 CareScout 和稅收投資的成長。

Turning now to our statutory results for our US life insurance companies, which we believe better represents their underlying performance and our primary focus in managing these companies. Slide 16 illustrates the continued benefit the in-force rate actions and legal settlements have on our LTC business, as shown through the $1.6 billion benefit to statutory income on a pre-tax basis recognized year-to-date. Overall, statutory earnings in LTC were $79 million in 2023, down from the $257 million during 2022, primarily due to higher claims as the block ages and block run-off, which is partially offset by larger impacts from in-force rate actions and legal settlements.

現在轉向我們美國人壽保險公司的法定業績，我們認為這更好地代表了他們的基本業績以及我們管理這些公司的主要重點。投影片 16 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 16 億美元的好處所示。總體而言，2023 年LTC 的法定收益為7,900 萬美元，低於2022 年的2.57 億美元，這主要是由於區塊老化和區塊徑流導致的索賠增加，但有效利率訴訟和法律訴訟的更大影響部分抵消了這一影響。

Slide 17 shows that paid claims are increasing as the blocks age and pandemic trends subside. Paid claims will continue to increase as peak claim years on our largest blocks, Choice I and Choice II, are over a decade away. 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.

幻燈片 17 顯示，隨著區塊老化和流行病趨勢消退，付費索賠正在增加。隨著我們最大的區塊（Choice I 和 Choice II）的索賠高峰年還有十多年，付費索賠將繼續增加。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。我們將繼續監控新索賠成長和福利利用趨勢。

Slide 18 shows our fourth quarter total pre-tax statutory income for the US life insurance companies of $148 million. This is driven primarily by variable annuities from the net favorable impact of equity market and interest rate movements in the quarter as well as net favorable impacts from assumption updates in the quarter, primarily in life insurance.

投影片 18 顯示美國人壽保險公司第四季稅前法定總收入為 1.48 億美元。這主要是由本季股票市場和利率變動的淨有利影響所產生的可變年金以及本季假設更新（主要是人壽保險）的淨有利影響所推動的。

LTC had a $467 million pre-tax benefit from in-force rate actions and legal settlements, but this was largely offset by higher claims as the block ages. The consolidated risk-based capital ratio for Genworth Life Insurance Company, or GLIC, was 303% at the end of the year compared to 291% in the prior year. GLIC's consolidated balance sheet remains sound, with capital and surplus as of the end of the year of $3.4 billion.

LTC 從有效的費率訴訟和法律和解中獲得了 4.67 億美元的稅前收益，但這在很大程度上被隨著區塊老化而增加的索賠額所抵消。Genworth 人壽保險公司 (GLIC) 的綜合風險資本比率截至年底為 303%，而前一年為 291%。GLIC 的綜合資產負債表依然穩健，截至年底資本和盈餘為 34 億美元。

Cash flow testing margin in our life insurance companies remain positive at the end of the year, with GLIC's margin ending within the $0.5 billion to $1 billion range after the assumption updates. Our final statutory results will be available on our investor website with our annual statement filings later this month.

我們的人壽保險公司的現金流測試利潤率在年底仍然為正，假設更新後，GLIC 的利潤率最終在 5 億至 10 億美元的範圍內。我們的最終法定結果將於本月稍後在我們的投資者網站上與我們的年度報表文件一起發布。

Moving to our investment portfolio, which is summarized on slide 19. We remain confident in our positioning and believe we have the right strategy, given the products in our portfolio and the duration of our liabilities.

轉向我們的投資組合，投影片 19 對此進行了總結。我們對自己的定位仍然充滿信心，並相信考慮到我們投資組合中的產品和負債期限，我們擁有正確的策略。

As a reminder, the majority of our assets are in investment-grade fixed maturities that we generally buy and hold to support the US life insurance company's 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.

提醒一下，我們的大部分資產都是投資等級固定期限資產，我們通常會購買並持有這些資產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。

The portfolio continues to benefit from the high interest rate environment. New money is currently being invested between 5.75% and 6%, excluding alternative investments which have targeted returns of approximately 12%. The current attractive new money rates will benefit the portfolio over time.

該投資組合繼續受益於高利率環境。目前新資金的投資比例在 5.75% 至 6% 之間，不包括目標回報率約 12% 的另類投資。隨著時間的推移，當前有吸引力的新貨幣利率將使投資組合受益。

Our net investment income reflects both solid base portfolio performance and strong returns in our alternative assets program, which is comprised mainly of diversified private equity. Our commercial real estate exposure is approximately 16% of our total portfolio and is concentrated in higher quality, investment-grade assets with office exposure of approximately 19% of our real estate investments.

我們的淨投資收入反映了我們的另類資產計畫的堅實基礎投資組合表現和強勁回報，該計畫主要由多元化私募股權組成。我們的商業房地產投資約占我們總投資組合的 16%，主要集中在更高品質的投資等級資產，其中辦公室投資約占我們房地產投資的 19%。

Next, turning to the holding company on slide 20. We continued to return capital to shareholders via share repurchases in the fourth quarter, repurchasing $35 million at an average price of $5.90 per share and another $25 million through February 13. We received $128 million of capital from Enact and $64 million from intercompany tax payments in the fourth quarter. We ended the year with $350 million of cash and liquid assets.

接下來，轉向投影片 20 上的控股公司。第四季度，我們繼續透過股票回購向股東返還資本，以每股 5.90 美元的平均價格回購了 3,500 萬美元，並在 2 月 13 日之前回購了 2,500 萬美元。第四季度，我們從 Enact 獲得了 1.28 億美元的資金，並從公司間納稅中獲得了 6,400 萬美元。年底，我們擁有 3.5 億美元的現金和流動資產。

For the full year, we received a total of $234 million of net intercompany tax payments. We have now fully utilized our available tax assets, meaning we will have less net cash inflows during 2024 to deploy.

全年，我們共收到 2.34 億美元的公司間淨稅。我們現在已經充分利用了可用的稅務資產，這意味著我們在 2024 年部署的淨現金流入將減少。

Tom reviewed 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 share repurchase program when our share price is below intrinsic value, and opportunistically pay down debt when attractive to us. We're very pleased with the value created for shareholders through our share repurchase program.

Tom 回顧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，當我們的股價低於內在價值時，透過我們的股票回購計畫向股東返還現金，並機會主義地償還債務當債務對我們有吸引力時。我們對透過股票回購計畫為股東創造的價值感到非常滿意。

In 2023, we fully completed the initial $350 million program that began in May 2022. We have an additional $316 million remaining under our current authorization as of February 13. And in 2024, we expect to allocate roughly $125 million to $150 million to share repurchases. This range could be higher or lower depending on our cash position, share price, and market condition and is lower than the amount we've repurchased in 2023, given that we have fully utilized our tax assets.

2023 年，我們全面完成了 2022 年 5 月開始的 3.5 億美元初步計畫。截至 2 月 13 日，我們目前的授權還剩餘 3.16 億美元。到 2024 年，我們預計將分配約 1.25 億至 1.5 億美元用於股票回購。這個範圍可能會更高或更低，具體取決於我們的現金狀況、股價和市場狀況，並且低於我們在 2023 年回購的金額，因為我們已經充分利用了我們的稅務資產。

Also in 2023, we completed a successful consent solicitation from bondholders, representing the majority in principal amount of our senior notes due in 2034. This transaction amended a restrictive covenant that limited our ability to repurchase our 2066 subordinated notes. We now have greater optionality to opportunistically buy back holding company debt when it's attractive relative to our other uses of capital.

同樣在 2023 年，我們成功徵求了債券持有人的同意，這些債券持有人占我們 2034 年到期的優先票據本金的大部分。這項交易修改了一項限制性契約，限制了我們回購 2066 張次級票據的能力。現在，當控股公司債務相對於我們的其他資本用途更具吸引力時，我們有更大的選擇機會回購控股公司債務。

In the fourth quarter, we repurchased $21 million of debt, reducing our total holding company debt to $856 million. After achieving our target debt level in 2022, we strive to maintain a debt-to-capital ratio of 25% or below attributing no equity value to LTC, life, and annuities. As of year-end, our debt-to-capital ratio was strong and below this target. We are pleased with our financial flexibility, given our liquidity level, sustainable cash flows from Enact, and manageable debt level.

第四季度，我們回購了 2,100 萬美元的債務，將控股公司債務總額減少至 8.56 億美元。在 2022 年實現目標債務水準後，我們努力將債務與資本比率維持在 25% 或以下，並且不將股權價值賦予長期TC、人壽保險和年金。截至年底，我們的債務與資本比率很高，但低於這一目標。鑑於我們的流動性水平、Enact 的可持續現金流以及可控的債務水平，我們對我們的財務靈活性感到滿意。

In closing, we are delivering on our strategic priorities while proactively managing our liabilities and risk. The multi-year rate action plan and the additional benefit from the three LTC legal settlements are enhancing our ability to honor policyholder commitments and further stabilize the legacy LTC block. Enact is a strong driver of shareholder value, as evidenced by its stable earnings, increasing book value, and capital returns. Looking ahead, we will continue to focus on delivering sustainable long-term growth through CareScout while returning meaningful value to shareholders through share repurchases.

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。多年費率行動計劃和三個 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並進一步穩定傳統 LTC 區塊的能力。Enact 是股東價值的強大驅動力，其穩定的收益、不斷增加的帳面價值和資本回報就證明了這一點。展望未來，我們將繼續專注於透過 CareScout 實現可持續的長期成長，同時透過股票回購為股東回報有意義的價值。

Now, let's open up the line for questions.

現在，讓我們開放提問熱線。

Thank you. (Operator Instructions) Ryan Krueger, KBW.

謝謝。（操作員說明）Ryan Krueger，KBW。

Hey. Good morning. I had a few questions on long-term care. The first one was on CareScout. I believe you said you expected $1 billion to $1.5 billion of present value of claim savings related to CareScout over time. I guess, first, I just wanted to understand. Did you already assume that in your reserve projections, or is that something that you would view as a possibility that you haven't reflected yet?

嘿。早安.我有一些關於長期照護的問題。第一個是在 CareScout 上。我相信您說過，您預計隨著時間的推移，與 CareScout 相關的索賠節省現值將達到 10 億至 15 億美元。我想，首先，我只是想了解一下。您是否已經在您的儲備預測中假設了這一點，或者您認為這是尚未反映的可能性？

So Ryan, great question, and it's the latter. So we assume the savings will be in that range, $1 billion to $1.5 billion, but we're just rolling out the network. We've had some matches, probably about 30 so far, since we're just starting. So as we get more information on how many are using the quality network versus another provider and how big the discounts are, our goals are to be the discounts between 10% and 20%. So far, we're able to achieve discounts at the higher end of that range.

瑞安，這是一個很好的問題，是後者。因此，我們假設節省的費用將在該範圍內，即 10 億至 15 億美元，但我們剛剛推出該網路。我們已經進行了一些比賽，到目前為止大概有 30 場，因為我們才剛開始。因此，當我們獲得更多關於有多少人使用優質網路與其他提供者以及折扣有多大的信息時，我們的目標是折扣在 10% 到 20% 之間。到目前為止，我們能夠實現該範圍高端的折扣。

So as we gain more experience, at some point, we'll view it as statistically significant. And at that point, you'll see us assume that. And that would reduce the amount of premium increases that we need in the future by that amount. So to your question, it's what we project, but we haven't factored it into -- and assumed in our projections, the value of it yet.

因此，當我們獲得更多經驗時，在某些時候，我們會認為它具有統計意義。到那時，你會看到我們這樣假設。這將減少我們未來所需的保費增加金額。所以對於你的問題，這就是我們的預測，但我們還沒有將其考慮在內，並且在我們的預測中假設了它的價值。

Understood. And then, secondly, I guess, I wanted to understand -- if you get to a point of economic breakeven on long-term care, obviously, you want to be in that place. But what are the broader implications for Genworth once you get to that place?

明白了。其次，我想，我想了解——如果你在長期照護方面達到了經濟收支平衡點，顯然，你希望處於那個位置。但一旦你到達那個地方，對 Genworth 來說更廣泛的影響是什麼？

Well, yeah, great question. So it's been a long-term effort and we've achieved -- I mean, we're very pleased with the results of adding $28 billion to the economics of the business. We think by the end of 2026, that will be a largely breakeven self-sustainability. And at that point, I would say, in most states -- so let's say, 35, 40 states -- we'll be done with premium increases.

嗯，是的，很好的問題。因此，這是一項長期的努力，我們已經取得了成果——我的意思是，我們對為企業經濟效益增加 280 億美元的結果感到非常滿意。我們認為，到 2026 年底，這將在很大程度上實現收支平衡的自我維持。到那時，我想說，在大多數州——比如說 35、40 個州——我們將不再增加保費。

As we've said before over the quarters, Ryan, as you know, there are a number of states who are well below average. I do think in those states, even beyond 2026, we'll continue to pursue rate increases until we get those states to the average of all the states.

正如我們之前在各個季度中所說的那樣，瑞安，如您所知，有許多州的情況遠低於平均水平。我確實認為，在這些州，即使在 2026 年之後，我們也將繼續追求升息，直到我們使這些州達到所有州的平均水平。

Thanks. And then just one last one. You've obviously made a lot of progress on achieving rate actions. But I think if you look back over time, either your loss recognition testing margin or your cash flow testing margin has remained about the same despite a very high level of achieved rate increases and benefit reductions, which implies a similar level of adverse reserve development from assumption updates over that same period. So I guess what gives you the confidence that this time, once you've achieved these rate increases, you won't have further offsets from negative reserve adjustments?

謝謝。然後只有最後一張。顯然，您在實現利率行動方面取得了很大進展。但我認為，如果你回顧一段時間，你的損失確認測試邊際或現金流量測試邊際都保持大致相同，儘管實現的利率增長和福利減少水平非常高，這意味著不利準備金發展的水平相似假設在同一時期更新。因此，我想是什麼讓您有信心，這一次，一旦您實現了這些加息，您將不會進一步抵消負準備金調整的影響？

Yeah, another great question, and there's a lot embedded in that. I would say that we've now paid 360,000 claims and $26 billion value of claims. And if you look at that one slide, it shows the claims we've actually paid in the last so many years. And every year, we look at -- the new claims get added to the total claims. And based on those, we determine whether there are any of our long-term assumptions that need be changed.

是的，這是另一個很好的問題，其中包含很多內容。我想說，我們現在已經支付了 36 萬起索賠，索賠價值達 260 億美元。如果你看那一張投影片，它顯示了我們在過去這麼多年中實際支付的索賠。每年，我們都會看到新的索賠金額會加到索賠總額中。基於這些，我們確定是否有任何需要改變的長期假設。

So my view is we're getting near the end. I think if you look at that, there's another slide that shows what the net present value total that we're looking to achieve to get to that breakeven is $33.3 billion. And we've achieved $28 billion to date. That $33.3 billion could go up, but potentially could go down over time.

所以我的觀點是我們已經接近尾聲了。我想如果你看一下，還有另一張投影片顯示了我們希望實現的損益兩平淨現值總額為 333 億美元。迄今為止，我們已實現 280 億美元的目標。這 333 億美元可能會上升，但隨著時間的推移也可能會下降。

And so I think while there likely are some assumptions that, based on new claims, we might change, I think based on 10 or 11 years of looking at it, I think we're getting near the end. So I don't think there's a lot left. The other way we sort of look at things, we think we're 85% of the way to being at breakeven or sustainability.

因此，我認為，雖然可能存在一些基於新主張的假設，我們可能會改變，但我認為基於 10 或 11 年的觀察，我認為我們已經接近終點。所以我認為剩下的不多了。從另一個角度來看，我們認為我們已經 85% 實現了損益平衡或永續發展。

Tom, could I just add one comment for Ryan to consider. And that is our block has gone through measurable settlement activity. And it provides risk resiliency to the block overall through the actions that have been taken, the selections that have been made by the policyholder. So should we see adverse development there, those reductions that have occurred through the settlement will add meaningful value to us and really cuts off tail risk for the block.

湯姆，我可以添加一條評論供瑞安考慮嗎？這就是我們的區塊已經經歷了可衡量的結算活動。它透過保單持有人所採取的行動和做出的選擇，為整個區塊提供風險抵禦能力。因此，如果我們看到那裡的不利發展，透過和解而發生的那些削減將為我們增加有意義的價值，並真正消除該區塊的尾部風險。

I agree with that. Good point. Jamala, anything you want to add?

我同意這一點。好點子。賈馬拉，您還有什麼要補充的嗎？

Great. I appreciate the answer.

偉大的。我很欣賞你的回答。

Thank you for the introduction at the beginning, Tom, and thank you for the good questions, Ryan. I reiterate what Jerome added in terms of the resiliency of the benefit reductions in settlement adding additional support, as we think about how -- the development of adverse assumptions in the future. Thank you.

謝謝你一開始的介紹，湯姆，也謝謝你提出的好問題，瑞安。我重申傑羅姆在和解中福利減少的彈性方面所補充的內容，增加了額外的支持，正如我們思考如何——未來不利假設的發展。謝謝。

Thanks, Jamala.

謝謝，賈馬拉。

Thank you.

謝謝。

Anything else, Ryan?

還有別的事嗎，瑞安？

I think that was it. I appreciate the answers.

我想就是這樣。我很欣賞這些答案。

All right. Thanks so much. Thanks for your questions.

好的。非常感謝。感謝您的提問。

(Operator Instructions) [Christopher Bolton], Private Investor.

（操作員說明）[Christopher Bolton]，私人投資者。

Who did you ask to have a question?

你問誰有問題？

Christopher, your line is open.

克里斯托弗，您的線路已開通。

Oh, thank you. In listening to the call, you mentioned that the GLIC risk-based capital ratio was 303%. Could you give a risk-based capital ratio for GLIAC?

哦謝謝。您在聽取電話會議時提到，GLIC 的創投率為 303%。您能否給出 GLIAC 基於風險的資本比率？

We did not. But Jamala or Jerome, we have that number if you want to give it.

我們沒有。但是賈馬拉或傑羅姆，如果您願意的話，我們有這個號碼。

Yes. I would --

是的。我會--

Chris, we have not provided that number, but it's north of 400%. And it's going up throughout the course of 2023. We've had particularly good results on the variable annuity block, given the equity market conditions. So it's north of 400%.

Chris，我們沒有提供這個數字，但已經超過 400%。在整個 2023 年，這一數字都會持續上升。考慮到股票市場的狀況，我們在可變年金領域取得了特別好的結果。所以它在 400% 以上。

And Christopher, just to follow up on that. In Genworth Life Insurance and Annuity Company, or GLIAC, there's very little of any LTC policies. It's mostly a life and annuity company. So its RBC is significantly better because it hasn't had the statutory losses of the past that we had in the LTC companies.

克里斯托弗，只是跟進此事。在 Genworth 人壽保險和年金公司 (GLIAC) 中，LTC 保單非常少。它主要是一家人壽和年金公司。因此，它的 RBC 明顯更好，因為它沒有像 LTC 公司那樣出現過去的法定損失。

Chris, I want to add one thing. All of our statutory filings will be coming soon. So you will be able to access and see the metrics in specific detail. But thank you for your question. Yeah, go ahead.

克里斯，我想補充一件事。我們所有的法定文件都將很快提交。因此，您將能夠訪問並查看指標的具體細節。但謝謝你的提問。是的，繼續吧。

Okay. Well, I have one more question. In view of GLIAC's strong risk-based capital ratio -- and I would say 400% could be characterized as strong. When do you think -- why do you feel that A.M. Best is still only giving GLIAC a fair best rating?

好的。嗯，我還有一個問題。鑑於 GLIAC 強大的基於風險的資本比率——我想說 400% 可以被描述為強勁。你什麼時候認為－為什麼你覺得 A.M. Best 仍然只給 GLIAC 一個公平的最佳評級？

Yeah. Look, I would say we don't always agree with the rating agencies. I think GLIAC is a very strong company. I think any RBC ratio, really, above 350 is usually deemed to be a strong investment grade.

是的。聽著，我想說我們並不總是同意評級機構的觀點。我認為GLIAC是一家非常強大的公司。我認為，實際上，任何高於 350 的 RBC 比率通常都被視為較高的投資等級。

But I think, Christopher, the rating agencies, so A.M. Best and probably S&P and Moody's, because we've said that we're not going to put any more shareholder capital into the life companies, and that's all three, that they're a closed system, they operate on their own, I think -- and therefore, we're relying on premium rate increases. I think the rating agencies have based the rating on that.

但我認為，克里斯托弗，評級機構，所以 A.M.最好的可能是標準普爾和穆迪，因為我們已經說過，我們不會再向壽險公司投入更多的股東資本，這三者都是，我認為它們是一個封閉的系統，它們自行運作— —因此，我們依賴保費上漲。我認為評級機構是以此為基礎進行評級的。

And so we're disappointed. We think they should be higher, but that's where they are. That's a good question.

所以我們很失望。我們認為它們應該更高，但事實就是如此。這是個好問題。

Good. Thanks. Thank you, sir, for the information. I appreciate it.

好的。謝謝。謝謝先生提供的資訊。我很感激。

Thank you.

謝謝。

(Operator Instructions) Arthur Tetyevsky, Cantor Fitzgerald.

（操作員說明）Arthur Tetyevsky、Cantor Fitzgerald。

Good morning. Thanks for the call. My question refers to the bottom of slide number 20 of your presentation. You talked about the share repurchases, as well as the repurchased $21 million of principal of 2034, and your 2066 final maturity subs. I'm wondering if you can share any plans to continue to repurchase both of these bonds going forward and if you could also provide some detail in terms of the proportionality of that $21 million bought back, broken down between the 2034 and 2066 notes. Thank you so much.

早安.感謝您的來電。我的問題涉及您簡報第 20 號投影片的底部。您談到了股票回購，以及 2034 年回購的 2,100 萬美元本金，以及 2066 年最終到期的次級債券。我想知道您是否可以分享未來繼續回購這兩種債券的任何計劃，以及您是否還可以提供有關 2,100 萬美元回購比例（在 2034 年和 2066 年票據之間細分）的一些細節。太感謝了。

Thanks, Arthur. I'll start out and then turn it over to Jerome, our CFO, to give you more details. But we negotiated in 2023 a very good adjustment to the bond offering. So prior to a consent from bondholders, we couldn't really repurchase the 2066s, which have traded well below par in the last several years.

謝謝，亞瑟。我將首先將其交給我們的財務長傑羅姆（Jerome），以向您提供更多詳細資訊。但我們在 2023 年對債券發行進行了非常好的調整。因此，在獲得債券持有人同意之前，我們無法真正回購 2066，因為過去幾年 2066 的交易價格遠低於面額。

So we agreed with them in exchange for repurchasing some of the 34s. Going forward, for every dollar of 2034 debt that we repurchase, we can buy $2 of the 2066 debt. And because both are traded below par, but particularly the 2066, we have been opportunistically repurchasing debt.

所以我們同意他們的要求，作為交換，我們重新買了一些 34。展望未來，我們每回購 1 美元的 2034 年債務，就可以購買 2 美元的 2066 年債務。由於兩者的交易價格均低於面額，尤其是 2066，我們一直在伺機回購債務。

Our priority is still to focus more on repurchasing shares because that's a better economic return for our stakeholders, shareholders, in particular, but we'll continue to do opportunistic debt. So we did a reasonable amount in '23. And Jerome -- I'll ask Jerome to give you the specific numbers. But going forward, I think you can expect repurchases sort of in that range going forward. But Jerome, do you want to give an update on the specifics?

我們的首要任務仍然是更專注於回購股票，因為這對我們的利害關係人，特別是股東來說是更好的經濟回報，但我們將繼續進行機會主義債務。所以我們在 23 年做了合理的數量。傑羅姆——我會請傑羅姆給你具體的數字。但展望未來，我認為你可以預期回購會在這個範圍內進行。但是傑羅姆，您想提供具體細節的最新資訊嗎？

Yeah, Arthur. Thank you for the question. We're pleased with the modification of the replacement capital covenant. And I would say in the $21 million that you highlight on slide 20, the majority of that was the 2034s that was part of what we agreed to as part of the consent and there was a smaller piece of the 2066s.

是的，亞瑟。感謝你的提問。我們對置換資本契約的修改感到滿意。我想說的是，在您在投影片 20 上強調的 2,100 萬美元中，其中大部分是 2034，這是我們同意的一部分，也是同意的一部分，還有一小部分是 2066。

And I would just say, as you think about adding shareholder value, I agree with Tom. Our focus is going to be on share buybacks, as you think about economic value. We just feel very good about where we're buying. I think you've seen the [ever-to-date] results on our share repurchase program, which is just a little above $5 million, and we're very pleased with that.

我只想說，當你考慮增加股東價值時，我同意湯姆的觀點。當你考慮經濟價值時，我們的重點將是股票回購。我們只是對購買的地方感覺非常好。我想您已經看到了我們股票回購計劃的[迄今為止的]結果，該計劃的金額略高於 500 萬美元，我們對此感到非常滿意。

So we'll continue to allocate and focus on share buybacks at pricing levels that we've highlighted. We'll continue to be opportunistic. But proportionately, we're in a good place from a leverage perspective. We're well below our target right now, and you'll see the preponderance of our capital allocation going to share buybacks.

因此，我們將繼續按照我們強調的定價水準分配並專注於股票回購。我們將繼續保持機會主義。但按比例來說，從槓桿角度來看，我們處於有利位置。我們目前遠低於我們的目標，您會看到我們的資本配置大部分用於股票回購。

Got it. Thank you so very much for clarifying that. Much appreciated.

知道了。非常感謝您澄清這一點。非常感激。

Yeah. Thank you. Yeah. Thank you, Arthur. Thanks for your question. So Jenny, back to you. I think it looks like that's all the questions we have. But if you can confirm that, and then I'll just wrap up.

是的。謝謝。是的。謝謝你，亞瑟。謝謝你的提問。珍妮，回到你身邊。我想這就是我們所有的問題了。但如果你能證實這一點，那麼我就結束了。

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

好的。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，請他發表結束意見。

Thank you very much, Jenny, and thanks to everybody on the call. Thanks to Ryan, Christopher, and Arthur for your great questions. I think they are very good ones. And hopefully, we gave you good responses.

非常感謝你，珍妮，也感謝參加電話會議的所有人。感謝 Ryan、Christopher 和 Arthur 提出了很好的問題。我認為他們都是非常好的人。希望我們為您帶來了好的回應。

But in closing, just to sum up, we're very pleased with Enact's strong performance. We're very pleased with the move forward we've made with our MYRAP getting to $28 billion of net present value achieved. We're pleased with the progress in CareScout, particularly with building the quality care network now to 125 providers that are credentialed, have been approved for quality, and were bending the cost curve by negotiating discounts.

但最後，總而言之，我們對 Enact 的強勁表​​現感到非常滿意。我們對 MYRAP 淨現值達到 280 億美元所取得的進展感到非常高興。我們對 CareScout 的進展感到高興，特別是現在已為 125 家擁有資格的提供者建立了優質護理網絡，這些提供者已獲得品質批准，並透過談判折扣來彎曲成本曲線。

And no other LTC insurers have ever really tried to do that. So we're the first one. The health insurers have had a lot of success at that over time. So we're pleased with that.

沒有其他長期照護保險公司真正嘗試過這樣做。所以我們是第一個。隨著時間的推移，健康保險公司在這方面取得了巨大的成功。所以我們對此感到滿意。

As I said, we hope, by the end of the year, to have 600 providers that are credentialed in our network. And if we get to that level, we'll have two-thirds of our policyholders and two-thirds across the country of 65-year-olds covered by a quality care network provider or home care provider in their ZIP code.

正如我所說，我們希望到今年年底，我們的網路中擁有 600 家獲得認證的提供者。如果我們達到這一水平，我們將有三分之二的保單持有人和全國三分之二的 65 歲老年人在其郵政編碼中受到優質護理網絡提供者或家庭護理提供者的覆蓋。

And then, finally, we'll continue to focus on share repurchases. As we said to Arthur opportunistically, we'll look to buy back a little bit of debt. But we've added value. Hopefully, shareholders are pleased with the improvement in our share price over the last couple of years, and we look to continue to do that.

最後，我們將繼續關注股票回購。正如我們機會主義地對亞瑟所說，我們將尋求回購一些債務。但我們已經增加了價值。希望股東對過去幾年我們股價的改善感到滿意，我們希望繼續這樣做。

And in the end, through CareScout, our goal is to, long-term, increase value by expanding our long-term care services and insurance business through CareScout and helping many more families navigate very challenging aging journey that they face with confidence.

最後，透過 CareScout，我們的長期目標是透過 CareScout 擴大我們的長期照護服務和保險業務，並幫助更多家庭充滿信心地應對充滿挑戰的老化旅程，從而增加價值。

So thank you, all, all of the investors and others, for your interest and support of Genworth and your investment in our company. And we'll see you next quarter.

感謝所有投資者和其他人對 Genworth 的興趣和支持以及對我們公司的投資。我們下個季度再見。

And with that, Jenny will end the call.

說完，珍妮就結束了通話。

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

女士們、先生們，Genworth 第四季財務電話會議到此結束。感謝您的參與。這時，通話就會結束。