Genworth Financial Announces $350 Million Share Repurchase Authorization

Rhea-AI Summary

Genworth Financial (NYSE: GNW) has launched a $350 million share repurchase program, the first in over 13 years. This decision reflects an improved financial position and a commitment to return capital to shareholders. Genworth plans to fund repurchases from holding company capital and future cash flows, including dividends from its investment in Enact Holdings (NASDAQ: ACT). The program allows flexibility in timing and method of repurchase, with no expiration date set. CEO Tom McInerney emphasized the company's strong financial performance and future growth initiatives.

Positive

• Share repurchase program authorized for $350 million, reflecting improved financial standing.
• First capital return program in over 13 years, signaling confidence in future performance.
• Funding planned from holding company capital and future cash flow, enhancing shareholder returns.

Negative

• None.

RICHMOND, Va.--(BUSINESS WIRE)-- Genworth Financial, Inc. (NYSE: GNW) today announced that its Board of Directors has authorized a share repurchase program under which Genworth may repurchase up to $350 million of its outstanding Class A common stock.

“The Board’s decision to authorize a share repurchase program reflects the company’s improved financial position and commitment to our strategic priorities including delivering shareholder returns,” said Tom McInerney, Genworth’s President and Chief Executive Officer. “We have entered a new chapter, and this announcement marks the first authorization to return capital to shareholders in over 13 years. We delivered outstanding financial performance over the last several quarters and are confident in our ability to return capital to shareholders over time while pursuing our growth initiatives.”

Repurchases under the authorized program would be funded from holding company capital, as well as future cash flow generation, including expected future dividends from Genworth’s ownership in Enact Holdings, Inc. Genworth expects the majority of share repurchases to occur following the repayment of its remaining 2024 debt.

Under the program, share repurchases may be made at the company’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and number of shares repurchased under the program will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The authorization has no expiration date and may be modified, suspended or terminated at any time.

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 provider of products, services and solutions that help families address the financial challenges of aging. Headquartered in Richmond, Virginia, we apply our nearly 150 years of experience each day to helping people navigate caregiving options and fund their long-term care needs. Genworth is also the parent company of publicly traded Enact Holdings, Inc. (Nasdaq: ACT), a leading U.S. mortgage insurance provider. For more information on Genworth, visit genworth.com, and for more information on Enact visit enactmi.com.

Cautionary Note Regarding Forward-Looking Statements

This communication contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements regarding the outlook for future business and financial performance of Genworth Financial, Inc. (Genworth) and its consolidated subsidiaries. Examples of forward-looking statements include statements Genworth makes relating to future reductions of debt, potential dividends or share repurchases. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks, as well as risks discussed in the risk factor section of Genworth's Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission (SEC) on February 28, 2022. Genworth undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220502005626/en/

Contact Information:

Investors:

Sarah Crews

InvestorInfo@genworth.com



Media:

Amy Rein

Amy.Rein@genworth.com

Source: Genworth Financial, Inc.

FAQ

What is the purpose of Genworth's $350 million share repurchase program?

The share repurchase program aims to return capital to shareholders and reflects Genworth's improved financial position.

When was the last time Genworth authorized a share repurchase program?

Genworth's recent authorization is the first share repurchase program in over 13 years.

How will the repurchases be funded?

Repurchases will be funded through holding company capital and future cash flows, including dividends from Enact Holdings.

Is there an expiration date for Genworth's share repurchase program?

The share repurchase authorization has no expiration date and can be modified or suspended at any time.

What stock symbols are associated with Genworth and its holdings?

Genworth Financial is listed under NYSE: GNW, while its subsidiary Enact Holdings is listed as NASDAQ: ACT.