Genworth Financial Inc (GNW) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Genworth Financial's second quarter 2024 earnings conference call. My name is Cynthia, and I will be your coordinator today. (Operator Instructions) As a reminder, the conference is being recorded for replay purposes. Also, we ask that you refrain from using cell phones, speakerphones or headsets during the Q&A portion of today's call.

早安，女士們、先生們，歡迎參加 Genworth Financial 2024 年第二季財報電話會議。我叫辛西婭，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。此外，我們要求您在今天通話的問答部分不要使用手機、免持電話或耳機。

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 second quarter 2024 earnings call. The slide presentation that accompanies this call is available on the Investor Relations section of the Genworth website, investor.genworth.com.

謝謝你，早安。歡迎參加 Genworth 2024 年第二季財報電話會議。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。

Our earnings release and financial supplement can also be found there, and we encourage you to review these materials. 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.

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。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。

In addition to our speakers, Jamala Arland, President and CEO of our US Life Insurance businesses; and Kelly Saltzgaber, Chief Investment Officer will be available to take your questions. 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.

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 Arland；首席投資長 Kelly Saltzgaber 將回答您的問題。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 financial measures have been reconciled to GAAP where required in accordance with the 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，非 GAAP 財務指標已根據 SEC 規則的要求與 GAAP 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, Brian. Good morning, everyone and thank you for joining our second-quarter earnings call.

謝謝你，布萊恩。大家早安，感謝您參加我們的第二季財報電話會議。

Genworth continues to make strong progress against our strategic priorities to drive long-term growth and shareholder value. In the second quarter, Genworth reported net income of $76 million or $0.17 per share and adjusted operating income of $125 million or $0.28 per share. Results were led again by Enact, which had a very strong quarter with adjusted operating income of $165 million to Genworth.

Genworth 繼續在我們的策略重點方面取得強勁進展，以推動長期成長和股東價值。第二季度，Genworth 淨利潤為 7,600 萬美元，即每股 0.17 美元，調整後營業收入為 1.25 億美元，即每股 0.28 美元。Enact 的業績再次領先，該季度 Genworth 的調整後營業收入非常強勁，達到 1.65 億美元。

We are very pleased with Enact's continued strong operating performance, capital levels, and shareholder distributions. As a result of its continued momentum, yesterday Enact announced an increase to its expected shareholder return for the full year, which Jerome will cover in more detail later.

我們對 Enact 持續強勁的經營業績、資本水準和股東分配感到非常滿意。由於其持續的發展勢頭，昨天 Enact 宣布上調全年的預期股東回報，傑羅姆稍後將對此進行更詳細的介紹。

Since Enact's IPO, Genworth has received approximately $738 million in capital from Enact, including $63 million in the second quarter. We're very satisfied with our approximately 81% ownership stake in Enact as it continues to generate significant earnings and cash flows that support our capital allocation priorities of share repurchases, opportunistic debt reduction, and growth investments in CareScout.

自 Enact 首次公開募股以來，Genworth 已從 Enact 獲得約 7.38 億美元的資金，其中包括第二季的 6,300 萬美元。我們對 Enact 約 81% 的所有權感到非常滿意，因為它繼續產生可觀的收益和現金流，支持我們的股票回購、機會性債務削減和 CareScout 成長投資等資本配置優先事項。

Our LTC segment reported an adjusted operating loss of $29 million in the second quarter, driven by a liability remeasurement loss. Meanwhile, life and annuities reported an adjusted operating loss of $1 million, driven by losses in life insurance. On the statutory accounting basis, the US Life Insurance companies had a very strong quarter with pre-tax income estimated at $171 million, driven primarily by benefits from LTC rate force actions.

由於負債重新計量損失，我們的 LTC 部門第二季調整後營運虧損為 2,900 萬美元。同時，由於人壽保險損失，人壽和年金業務調整後營業虧損為 100 萬美元。在法定會計基礎上，美國人壽保險公司的季度表現非常強勁，稅前收入估計為 1.71 億美元，這主要是由於 LTC 利率強制行動的好處。

Complete statutory results for US Life Insurance companies will be available when we file our second-quarter statutory statements later this month. Jerome will cover our performance by segment in more detail. As I shared at our annual meeting in May, we refined our strategic priorities to reflect our significant progress to date and more clearly articulate our vision for Genworth's future.

當我們在本月稍後提交第二季度法定報表時，將提供美國人壽保險公司的完整法定結果。傑羅姆將更詳細地介紹我們按細分市場的表現。正如我在 5 月的年會上分享的那樣，我們完善了我們的策略重點，以反映我們迄今為止的重大進展，並更清晰地闡明我們對 Genworth 未來的願景。

Our first strategic priority is to maintain our self-sustaining, customer-centric LTC life and annuity legacy businesses. Our multi-year rate action plan or MYRAP remains critical to this effort as the most effective tool we have to bring our legacy LTC insurance portfolio to breakeven on a go-forward basis.

我們的首要策略重點是維持我們自我維持、以客戶為中心的長期照護壽險和年金傳統業務。我們的多年費率行動計劃（MYRAP）對於這項工作仍然至關重要，因為它是我們使我們的傳統 LTC 保險投資組合在未來實現盈虧平衡的最有效工具。

We had an outstanding quarter under the multi-year rate action plan, achieving a total of $138 million of gross incremental premiums approved, with an average percentage premium increase of 47%. This brings our cumulative progress to an estimated $29.2 billion in approvals on a net present value basis since 2012.

我們在多年費率行動計劃下度過了一個出色的季度，批准的毛增量保費總額為 1.38 億美元，平均保費增長百分比為 47%。這使得自 2012 年以來我們的累計核准進度達到估計淨現值 292 億美元。

Our next strategic priority is to drive future growth through CareScout with innovative, consumer-focused aging care services and funding solutions. We continued to scale our CareScout Quality Network in the second quarter, extending its availability to more than 40 states as of July 30.

我們的下一個策略重點是透過 CareScout 提供創新的、以消費者為中心的老年護理服務和融資解決方案來推動未來的成長。我們在第二季度繼續擴大 CareScout 品質網絡，截至 7 月 30 日將其可用性擴展到 40 多個州。

As a reminder, the initial buildout of the CareScout Quality Network includes only homecare providers and is only accessible to Genworth LTC policyholders. This approach allows us to establish a presence across the US before adding assisted living facilities and other care types to the network and introducing a direct-to-consumer offering in the future.

提醒一下，CareScout 品質網路的初始構建僅包括家庭護理提供者，並且僅可供 Genworth LTC 保單持有人使用。這種方法使我們能夠在美國各地建立業務，然後在網路上添加輔助生活設施和其他護理類型，並在未來推出直接面向消費者的服務。

We previously laid out a 2024 goal of achieving home-care coverage for two-thirds of the age 65-plus census population in the US. I'm pleased to share that as of the end of July, we have already achieved approximately 70% coverage of that group and now expect to achieve between 80% to 85% coverage by the end of the year. The network currently includes over 300 high-quality, person-centered, home-care providers.

我們先前製定了在 2024 年實現美國 65 歲以上人口普查人口三分之二的家庭照護覆蓋的目標。我很高興地告訴大家，截至 7 月底，我們已經實現了該群體約 70% 的覆蓋率，現在預計到年底將實現 80% 至 85% 的覆蓋率。該網路目前包括 300 多家高品質、以人為本的家庭護理提供者。

Further, more than 90% of these providers have agreed to hourly rates below the median cost of care in their respective zip codes, along with meeting our quality credentialing standards. Along with the strong progress on building the network, we are also encouraged by the network's early adoption by our LTC policyholders. We have already helped hundreds of new policyholders on claim find quality care with CareScout Quality Network care providers.

此外，超過 90% 的醫療服務提供者同意每小時收費低於各自郵遞區號地區的醫療費用中位數，同時符合我們的品質認證標準。隨著網路建設取得巨大進展，我們的長期照護保險保單持有人也很早就採用了這個網絡，這也讓我們深受鼓舞。我們已經幫助數百名索賠的新投保人透過 CareScout 品質網路照護提供者找到優質照護。

We've received positive feedback so far from both providers and policyholders who value the balance of quality, price and service offered by our one-of-a-kind network. While it will take time, we remain confident in our previously stated goal to drive savings on Genworth LTC claims over time of between $1 billion to $1.5 billion on a net present value basis, further mitigating risk in our legacy LTC block.

到目前為止，我們已經收到了提供者和保單持有人的正面回饋，他們重視我們獨特的網路所提供的品質、價格和服務的平衡。雖然這需要時間，但我們仍然對先前提出的目標充滿信心，即隨著時間的推移，以淨現值為基礎，將Genworth LTC 索賠節省10 億至15 億美元，進一步降低我們傳統LTC 區塊的風險。

It is important to remember that while we're in the early stages of this business with plan to extend the offering beyond our policyholders to other LTC insurers, policyholders, employers and the broad consumer market where we see a substantial opportunity for growth. We will continue to refine the customer experience with valuable input from our policyholders and network providers and invest thoughtfully as we scale.

重要的是要記住，雖然我們正處於這項業務的早期階段，但我們計劃將產品範圍從我們的保單持有人擴展到其他長期照護保險公司、保單持有人、雇主和廣泛的消費者市場，我們認為這些市場存在著巨大的成長機會。我們將繼續利用保單持有人和網路提供者的寶貴意見來完善客戶體驗，並在規模擴張時進行深思熟慮的投資。

In addition to bringing new agent care services to market, we continue to prepare new long-term care funding solutions for the millions of Americans who are unprepared to meet the cost of care. As I've shared, we are initially working on an individual product with cap coverage limits and conservative assumptions designed to reduce the need for future LTC premium increases. It will also include access to the CareScout Quality Network, which provides significant discounts on care costs to help policyholders optimize their claim dollars.

除了將新的代理護理服務推向市場外，我們還繼續為數百萬尚未準備好支付照護費用的美國人準備新的長期照護資金解決方案。正如我所分享的，我們最初正在開發一種具有上限覆蓋範圍限制和保守假設的單獨產品，旨在減少未來長期護理保險費增加的需求。它還將包括訪問 CareScout 品質網絡，該網絡提供護理費用的大幅折扣，以幫助保單持有人優化他們的索賠金額。

We are currently engaging with the Interstate Insurance Product Regulation Commission known as the Compact, and plan to seek its approval for this product to help us reach scale across the Compact's multiple member states. We also will pursue product approvals from additional jurisdiction. There is significant unmet demand for new and improved LTC funding products among consumers, distributors and regulators.

我們目前正在與州際保險產品監管委員會（稱為契約）合作，並計劃尋求其對該產品的批准，以幫助我們在契約的多個成員國中實現規模化。我們也將尋求其他司法管轄區的產品批准。消費者、經銷商和監管機構對新的和改進的長期TC 融資產品的需求尚未得到滿足。

We are excited with our plan to reenter the market with this product in 2025 and continue innovating on future products to give families more options to plan for the increasing cost of quality care. Our third strategic priority is to create shareholder value to Enact's growing market value and capital returns.

我們計劃在 2025 年憑藉該產品重新進入市場，並繼續對未來產品進行創新，為家庭提供更多選擇，以應對不斷增加的優質護理成本，對此我們感到非常興奮。我們的第三個策略重點是為 Enact 不斷增長的市場價值和資本回報創造股東價值。

We are very pleased with Enact's total shareholder return of 104% as of July 30, since its IPO in 2021. With respect to capital returns in the second quarter, we use cash flows from Enact to repurchase approximately [$36 million] of shares. In total, we have repurchased approximately $470 million of shares at an average price of $5.47 per share since the program's inception in May 2022.

自 2021 年 IPO 以來，截至 7 月 30 日，Enact 的股東總回報率為 104%，我們對此感到非常高興。關於第二季的資本回報，我們利用 Enact 的現金流量回購約 [3,600 萬美元] 的股票。自 2022 年 5 月該計畫啟動以來，我們總共以每股 5.47 美元的平均價格回購了約 4.7 億美元的股票。

We are also leveraging cash flows from Enact to drive long-term growth and continue to expect an investment of approximately $35 million in CareScout services this year as we scale the CareScout Quality Network.

我們也利用 Enact 的現金流來推動長期成長，並預計今年隨著我們擴大 CareScout 品質網絡，CareScout 服務將獲得約 3,500 萬美元的投資。

Before I wrap up, I wanted to take a moment to remind investors that the trial date and access case against Santander regarding the payment protection insurance misselling case is still set for March of 2025. As we have said before, Genworth is not a party to the case, but previously owned the payment protection insurance business before selling it to AXA in 2015.

在結束之前，我想花點時間提醒投資者，針對桑坦德銀行的付款保護保險不當銷售案的審判日期和訪問案件仍定於 2025 年 3 月。正如我們之前所說，Genworth不是該案的當事人，但在2015年將其出售給AXA之前曾擁有支付保障保險業務。

If AXA is successful in pursuing its claims, we will share in the recoveries AXA receives from Santander. We continue to monitor the proceedings closely and will update investors of any material developments. In closing, I am very pleased with our continued progress against our strategic priorities year-to-date along with Enact's strong performance.

如果 AXA 成功索賠，我們將分享 AXA 從桑坦德銀行獲得的賠償。我們將繼續密切關注整個進程，並將向投資者通報任何重大進展。最後，我對今年迄今為止我們在策略重點方面的持續進展以及 Enact 的強勁表​​現感到非常滿意。

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.

謝謝你，湯姆，大家早安。

I'm very pleased with the ongoing value creation delivered by Enact and progress on our LTC in-force rate actions, as well as our capital optimization and continued improvement in financial flexibility in the quarter. I'll first discuss Genworth's results and drivers in more detail. Then, I'll provide an update on our investment portfolio and holding company liquidity before we open the call for Q&A.

我對 Enact 持續創造的價值、LTC 有效利率行動的進展以及本季我們的資本優化和財務靈活性的持續改善感到非常滿意。我將首先更詳細地討論 Genworth 的結果和驅動因素。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控股公司流動性的最新資訊。

Per slide 5, and as Tom mentioned, second quarter adjusted operating income was $125 million, driven primarily by Enact. Our long-term care insurance segment reported an adjusted operating loss of $29 million, primarily driven by a liability remeasurement loss from actual to expected experience, partially offset by favorable variable investment income and net insurance recoveries.

根據投影片 5，如 Tom 所提到的，第二季調整後營業收入為 1.25 億美元，主要由 Enact 推動。我們的長期照護保險部門報告調整後營業虧損為 2,900 萬美元，主要是由於實際經驗與預期經驗的負債重新計量損失所致，部分被有利的可變投資收入和淨保險回收率所抵消。

The favorable seasonal impact from mortality, we observed in the first quarter, subsided as anticipated and we continue to expect LTC GAAP earnings pressure throughout the remainder of the year due to short-term deviations of actual results compared to long-term assumptions. We also expect a liability remeasurement loss from actual-to-expected experience for the full year.

我們在第一季觀察到，死亡率帶來的有利季節性影響已按預期消退，由於實際結果與長期假設相比存在短期偏差，我們繼續預期 LTC GAAP 獲利將在今年剩餘時間內面臨壓力。我們也預計，根據全年的實際經驗和預期經驗，會出現負債重新計量損失。

As we have said before, GAAP results continue to be volatile. We believe statutory results better represent the underlying economics of the LTC business, including the positive impacts resulting from our in-force rate actions and settlements. The strong results from Enact were also partially offset by adjusted operating losses of $1 million in life and annuities and $10 million in corporate and other.

正如我們之前所說，公認會計原則（GAAP）結果持續波動。我們相信法定結果更好地代表了 LTC 業務的基本經濟狀況，包括我們有效的利率行動和和解所產生的正面影響。Enact 的強勁業績也被調整後的人壽和年金業務虧損 100 萬美元以及企業和其他業務虧損 1,000 萬美元所部分抵銷。

Life and annuities included an adjusted operating loss in life insurance at $23 million, improved versus the first quarter, driven by favorable mortality as well as adjusted operating income of $12 million from fixed annuities and $10 million from variable annuities. The $10 million loss in corporate and other was driven by interest expense on holding company debt and investments for our growth initiatives in CareScout offset by favorable corporate tax timing.

人壽和年金業務包括人壽保險調整後營業虧損2,300 萬美元，較第一季有所改善，原因是死亡率良好，以及固定年金調整後營業收入1,200 萬美元和可變年金調整後營業收入1,000 萬美元。企業及其他方面的 1000 萬美元虧損是由控股公司債務的利息支出以及我們對 CareScout 增長計劃的投資造成的，但被有利的企業稅收時機所抵消。

Now taking a closer look at Enact's performance on slide 6. Enact delivered a very strong second quarter, including high-quality growth in its insured portfolio and strong profitability. Enact's adjusted operating income of $165 million to Genworth increased 13% versus the prior year, reflecting favorable losses and net investment income.

現在仔細看看投影片 6 上的 Enact 表現。Enact 第二季業績非常強勁，包括其保險投資組合的高品質成長和強勁的獲利能力。Enact 為 Genworth 帶來的調整後營業收入為 1.65 億美元，較上年增長 13%，反映出有利的虧損和淨投資收入。

Primary insurance in-force increased 3% year over year to $266 billion, driven by new insurance written and continued elevated persistency. As shown on slide 7, Enact had a favorable $77 million pre-tax reserve release in the second quarter, which drove a loss ratio of negative 7%.

受新承保保險和持續性持續提高的推動，有效主要保險年增 3%，達到 2,660 億美元。如投影片 7 所示，Enact 在第二季釋放了 7,700 萬美元的稅前準備金，導致虧損率為負 7%。

The reserve release primarily reflects favorable cure performance from 2023 and prior delinquencies. Enact has a strong estimated PMIERs sufficiency ratio of 169%, approximately $2.1 billion above PMIERs' requirements. Genworth's share of Enact's book value, including AOCI, has increased to $3.9 billion at the end of the second quarter of 2024, while at the same time Enact has delivered significant capital returns to Genworth.

儲備金釋放主要反映了 2023 年良好的治癒表現和先前的拖欠情況。Enact 預計 PMIER 的充足率高達 169%，比 PMIER 的要求高出約 21 億美元。截至 2024 年第二季末，Genworth 在 Enact 帳面價值（包括 AOCI）中所佔份額已增至 39 億美元，同時 Enact 為 Genworth 帶來了可觀的資本回報。

The combination of Enact's quarterly dividend and its share repurchase program generated a total of $63 million in proceeds to Genworth in the second quarter. As Enact announced yesterday, it now expects to return a total of between $300 million to $350 million to its shareholders in 2024. Based on our approximately 81% ownership position, we now expect to receive between $245 million to $285 million from Enact for the full year. Enact's shareholder return program provides additional support to Genworth's capital allocation priorities, which I will cover in more detail later.

Enact 的季度股息和股票回購計劃相結合，第二季為 Genworth 帶來了總計 6300 萬美元的收益。正如 Enact 昨天宣布的那樣，它現在預計將在 2024 年向股東返還總計 3 億至 3.5 億美元的資金。基於我們約 81% 的所有權地位，我們現在預計全年將從 Enact 獲得 2.45 億至 2.85 億美元的收入。Enact 的股東回報計劃為 Genworth 的資本配置優先事項提供了額外的支持，我將在稍後詳細介紹。

Turning to long-term care insurance starting on slide 8, we continue to demonstrate the self-sustainability of the life insurance companies as we stabilize the LTC legacy block and protect our claims-paying ability.

從幻燈片 8 開始轉向長期護理保險，隨著我們穩定 LTC 遺留區塊並保護我們的理賠能力，我們將繼續展示人壽保險公司的自我永續性。

The strong progress on our multi-year rate action plan or MYRAP and legal settlements continues to significantly reduce the tail risk on this block. As of the end of the second quarter, we have achieved in-force rate actions estimated at $29.2 billion on a net present value basis and have seen a cumulative policyholder response rate of 55% to reduce benefits.

我們的多年利率行動計劃（MYRAP）和法律解決方案的強勁進展繼續顯著降低該區塊的尾部風險。截至第二季末，我們已採取的有效利率行動以淨現值估計為 292 億美元，且保單持有人對減少福利的累積回應率為 55%。

Slide 9 shows more details on the filings approved in recent periods, including $138 million in the current quarter, as well as the positive trend we've seen in policyholder benefit reduction elections. We continue to expect strong approvals for the full year. We submitted $104 million of in-force premium filings in the first half of the year.

幻燈片 9 顯示了近期批准的申請的更多詳細信息，包括本季度的 1.38 億美元，以及我們在保單持有人福利削減選舉中看到的積極趨勢。我們繼續預計全年將獲得強勁批准。今年上半年，我們提交了 1.04 億美元的有效保費申請。

Though we expect this amount to increase in the second half of the year, we expect the total in-force premium filings submitted this year to be lower than previous years as in some cases, prior large approvals or multi-year implementations have delayed the need for additional filings.

儘管我們預計這筆金額將在今年下半年增加，但我們預計今年提交的有效保費申請總數將低於往年，因為在某些情況下，先前的大規模批准或多年實施推遲了需求以獲得額外的備案。

We are pleased with this progress and, as Tom noted, the demonstrated success with the MYRAP, which continues to be our most effective tool in maintaining the self-sustainability of the legacy LTC business. I will add that approximately $33 billion of projected value from the MYRAP has and may continue to increase over time with changes to liability assumptions, but this impact also increases the value of previously approved rate increases and associated benefit reductions.

我們對這一進展感到高興，正如 Tom 指出的那樣，MYRAP 所取得的成功仍然是我們維持傳統 LTC 業務自我可持續性的最有效工具。我要補充的是，隨著責任假設的變化，MYRAP 的預期價值已經並可能繼續隨著時間的推移而增加，約為330 億美元，但這種影響也增加了先前批准的加息和相關福利減少的價值。

This speaks to the resiliency of our business that has been strengthened through reduction of exposure to more costly benefit features like 5% compound benefit inflation option and unlimited benefits.

這說明了我們業務的彈性，透過減少 5% 複合福利通膨選項和無限福利等更昂貴的福利功能的暴露，我們的業務彈性得到了加強。

As shown on slide 10, in-force rate actions and legal settlements drove a $907 million benefit to LTC statutory income on a pre-tax basis in the first half of the year, which is $186 million higher than in the first half of 2023 and which more than offset the impact of unfavorable experience driving total LTC statutory pre-tax income of $257 million.

如投影片 10 所示，有效的稅率訴訟和法律和解為 LTC 上半年的稅前法定收入帶來了 9.07 億美元的收益，比 2023 年上半年增加了 1.86 億美元，這足以抵消不利經歷導致LTC法定稅前總收入達到2.57 億美元的影響。

Slide 11 shows our strong overall pre-tax statutory income for US Life Insurance companies of $171 million in the second quarter, driven by the favorable impacts of in-force rate actions and legal settlements in LTC, which we expect to decline in the second half of the year as the implementation of the third and final legal settlement winds down.

幻燈片11 顯示，我們第二季度為美國人壽保險公司帶來1.71 億美元的強勁整體稅前法定收入，這得益於LTC 的有效費率訴訟和法律和解的有利影響，我們預計LTC 的收入將在下半年下降隨著第三次也是最後一次法律解決方案的實施逐漸結束。

Second quarter results also reflect the net unfavorable impact, seasonally lower mortality compared to the prior quarter. Strong statutory earnings drove a consolidated risk-based capital ratio for Genworth Life Insurance Company, or GLIC, of 319% at the end of June compared to 314% at the end of March.

第二季的業績也反映了淨不利影響，即與上一季相比季節性較低的死亡率。強勁的法定獲利推動 Genworth Life Insurance Company (GLIC) 的綜合創投比率在 6 月底達到 319%，而 3 月底為 314%。

GLIC's consolidated balance sheet remains sound with capital and surplus of $3.6 billion as of the end of June. Our final statutory results will be available on our investor website with our second quarter filings later this month. 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 to cover future claims and other obligations.

GLIC 的綜合資產負債表依然穩健，截至 6 月底資本和盈餘為 36 億美元。我們的最終法定結果將於本月晚些時候在我們的投資者網站上與我們的第二季文件一起公佈。正如我們之前所說，我們獨立管理美國人壽保險公司。它們作為一個封閉的系統運作，利用現有的儲備和資本來支付未來的索賠和其他義務。

We will not put capital into the legacy life insurance companies and given the long-term nature of our LTC insurance policies with peak claim years at least a decade away, we also do not expect capital returns from these companies.

我們不會向傳統人壽保險公司投入資金，考慮到我們的長期照護保險保單的長期性質，索賠高峰年至少還有十年，我們也不期望這些公司有資本回報。

Moving to our investment portfolio, which is summarized on slide 12. We remain confident in our positioning and believe we have the right strategy given the products in our portfolio and the long duration of our liabilities.

轉向我們的投資組合，投影片 12 對此進行了總結。我們對我們的定位仍然充滿信心，並相信鑑於我們投資組合中的產品和長期負債，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 higher interest rate environment and macroeconomic conditions. New money was invested at approximately 6.20% in the quarter, excluding alternative investments which have targeted returns of approximately 12%. Our net investment income reflects both solid base portfolio performance and steady returns in our alternative asset program, which is composed mainly of diversified private equity.

該投資組合繼續受益於較高的利率環境和宏觀經濟狀況。本季新資金投資利率約為 6.20%，不包括目標回報率約為 12% 的另類投資。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穩定回報，該計畫主要由多元化私募股權組成。

We remain confident in our commercial real estate exposure, which is approximately 15% of our total portfolio and is concentrated in higher-quality investment-grade assets, with office exposure less than 20% of our real estate investments.

我們對商業房地產投資仍充滿信心，該投資約占我們總投資組合的 15%，且集中於較高品質的投資等級資產，而辦公室投資占我們房地產投資的比例不到 20%。

Next, turning to the holding company on slide 13. We received $63 million of capital from Enact during the second quarter, which included accelerated returns from its share repurchase program. We ended the quarter with $281 million of cash and liquid assets. Included in our cash and liquid assets, we hold approximately $95 million of advanced cash payments from our subsidiaries for future obligations. We do not consider this cash when evaluating holding company liquidity for the purpose of capital allocation or calculating the buffer to our debt service target.

接下來，轉向投影片 13 上的控股公司。第二季我們從 Enact 獲得了 6,300 萬美元的資金，其中包括其股票回購計畫的加速回報。本季結束時，我們擁有 2.81 億美元的現金和流動資產。包括我們的現金和流動資產在內，我們持有子公司預付的約 9,500 萬美元現金，以應付未來的債務。在出於資本配置目的評估控股公司流動性或計算償債目標緩衝時，我們不考慮這筆現金。

Tom reviewed our capital allocation strategy, and I'll reiterate that our top priorities shown on slide 14 are to invest in long-term growth through CareScout, 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 continue to return capital to shareholders via share repurchases in the second quarter, repurchasing $36 million at an average price of $6.29 per share and another $12 million through July 31.

Tom 回顧了我們的資本配置策略，我將重申投影片14 中顯示的我們的首要任務是透過CareScout 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，以及當對我們有吸引力時，機會主義地償還債務。第二季度，我們繼續透過股票回購向股東返還資本，以每股 6.29 美元的平均價格回購 3,600 萬美元，並在 7 月 31 日之前回購 1,200 萬美元。

We have $230 million remaining under our current authorization as of the end of July and now expect to allocate between $150 million to $170 million to share repurchases in 2024, up from our previous expectations of $125 million to $150 million, as a result of our improved cash expectations, which include Enact's increased capital return.

截至7 月底，我們目前的授權尚有2.3 億美元，現在預計將在2024 年分配1.5 億至1.7 億美元用於股票回購，高於我們先前預期的1.25 億至1.5 億美元，這是由於我們改進了現金預期，其中包括 Enact 增加的資本回報。

Our expected range for the full year may vary depending on our share price and market conditions and, as a reminder, is lower than the amount we repurchased in 2023, given that we have fully utilized our holding company tax assets. Since the initial authorization in May 2022, we have reduced outstanding shares by 15% from approximately 511 million shares to 432 million shares outstanding as of July 31, 2024.

我們對全年的預期範圍可能會根據我們的股價和市場狀況而有所不同，並提醒一下，鑑於我們已充分利用控股公司稅務資產，我們的預期範圍低於我們在 2023 年回購的金額。自2022年5月首次授權以來，截至2024年7月31日，我們已將流通股從約5.11億股減少至4.32億股，減少了15%。

We're very pleased with the value created for shareholders through our share repurchase program. We also repurchased $12 million in principle of long-dated subordinated notes in the second quarter for $10 million, reducing our total holding company debt to $838 million. We maintain a debt-to-capital ratio below 25%, attributing no equity value to LTC life and annuities. We are pleased with our financial flexibility given our liquidity level, sustainable cash flows from Enact and manageable debt level.

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。我們也在第二季以 1,000 萬美元原則上回購了 1,200 萬美元的長期次級票據，將我們的控股公司債務總額減少至 8.38 億美元。我們將債務與資本比率維持在 25% 以下，LTC 壽險和年金沒有股權價值。鑑於我們的流動性水平、Enact 的可持續現金流和可控的債務水平，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 further stabilizing the legacy LTC block.

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。多年費率行動計劃以及三項 LTC 法律和解帶來的額外好處正在進一步穩定傳統的 LTC 區塊。

Enact is a key driver of shareholder value, as evidenced by its strong earnings, increasing book value and increased capital returns. Looking ahead, we will continue to focus on delivering sustainable long-term growth through Enact and CareScout, while returning meaningful value to shareholders through share repurchases and opportunistically repurchasing holding company debt.

Enact 是股東價值的關鍵驅動力，其強勁的盈利、不斷增加的帳面價值和不斷增加的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 Enact 和 CareScout 實現可持續的長期成長，同時透過股票回購和機會性回購控股公司債務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。

Ladies and gentlemen, we will now begin the Q&A portion of the call. (Operator Instructions)

女士們先生們，我們現在開始電話會議的問答部分。（操作員說明）

It appears that there are no questions at this time. Ladies and gentlemen, I will now turn the call back over to Mr. McInerney for closing comments.

目前看來沒有任何疑問。女士們先生們，我現在將把電話轉回麥金納尼先生以徵求結束意見。

Thank you very much, Cynthia, and thanks for everybody on the call today. In closing, I'd like to emphasize four key takeaways for the second quarter.

非常感謝你，辛西婭，也感謝今天參加電話會議的所有人。最後，我想強調第二季的四個關鍵要點。

First, it was a solid quarter for earnings, led again by Enact. We had excellent MYRAP results, $138 million for the quarter and a total net present value benefit to Genworth of $29.2 billion, since we started the multi-year rate action plan in 2012. We had strong progress in CareScout, particularly building the CareScout Quality Network.

首先，在 Enact 的帶領下，本季的獲利表現穩健。自 2012 年啟動多年利率行動計畫以來，我們取得了出色的 MYRAP 業績，本季為 1.38 億美元，Genworth 的總淨現值收益為 292 億美元。我們在 CareScout 方面取得了巨大進展，特別是建立了 CareScout 品質網路。

Our full-year 2024 target was to have 65% of the US population for 60-plus-year-olds covered by the end of the year. We're now at 70% and we expect to be at 85% by the end of the year. So with effective national coverage by the end of the year, we look to then provide high-quality care at significant reduced costs for Americans.

我們的 2024 年全年目標是到年底覆蓋美國 65% 的 60 歲以上人口。目前，這一比例為 70%，預計到年底將達到 85%。因此，隨著年底有效的全國覆蓋，我們希望能夠以大幅降低的成本為美國人提供高品質的護理。

And we have three target groups to focus on to bring the CQN network, first, Genworth policyholders, then other policyholders of other insurers and then ultimately consumers. So we expect good revenue growth going forward starting really in 2025 and beyond. And the revenue growth will come from -- at least from the CareScout Quality Network as a percentage of the cost savings delivered by the CQN.

我們要專注於三個目標群體來引入 CQN 網絡，首先是 Genworth 保單持有人，然後是其他保險公司的其他保單持有人，最後是消費者。因此，我們預計從 2025 年及以後真正開始收入將出現良好成長。營收成長將來自——至少來自 CareScout 品質網絡，佔 CQN 成本節約的一定比例。

And finally, we had significant free cash flow again generated by Enact. They announced that they're increasing their capital return for the year, gave a range and again a significant amount of that capital, free cash flow will ultimately return to shareholders with a balance used to reduce debt and invest in the CareScout businesses.

最後，我們再次獲得了由 Enact 產生的大量自由現金流。他們宣布將增加今年的資本回報，並再次提供大量資本，自由現金流最終將返回股東，餘額用於減少債務和投資 CareScout 業務。

Thank you for your interest and support for Genworth in attending the call. And with that, I'll turn the call back over to Cynthia.

感謝您對 Genworth 參加電話會議的興趣和支持。然後，我會將電話轉回給辛西亞。

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

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