Genworth Financial (GNW)’s Net Investment Gains Help Net Income in Q1 2025

Genworth Financial, Inc. (NYSE:GNW) is one of the Most Undervalued Stocks Under $10 to Buy Now.  During Q1 2025, the company’s net investment gains (net of taxes) rose net income by $21 million as compared to the net investment losses of $32 million in the prior quarter. In the current quarter, the investment gains were mainly aided by mark-to-market adjustments on limited partnerships. Genworth Financial, Inc. (NYSE:GNW) made a strong progress towards the expansion of CareScout Quality Network, enhancing coverage to 90% of the aged 65+ census population in the US.

Genworth Financial (GNW)'s Net Investment Gains Help Net Income in Q1 2025

An individual signing financial documents with a representative from the life insurance company nearby.

Overall, the company’s Q1 2025 results demonstrate consistent execution throughout the strategic priorities, providing value through Enact, ensuring self-sustainability of the legacy insurance companies, as well as scaling CareScout as the growth engine. Notably, Enact Holdings is a leading provider of private mortgage insurance. Genworth Financial, Inc. (NYSE:GNW) increased shareholder value as Enact continues to grow market value. Since its IPO in 2021, the mortgage insurance subsidiary managed to return ~$980 million to Genworth, acting as a reliable and essential source of FCF.

Furthermore, Genworth Financial, Inc. (NYSE:GNW) highlighted that CareScout achieved strong growth in the number of matches between Genworth policyholders and CareScout quality network providers. During Q1 2025, the number of matches rose to 576 as compared to 52 in Q1 2024, over a 10x increase YoY.

Seven Corners Capital, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Genworth Financial, Inc. (NYSE:GNW), 15% position (Cost Basis: $3.75)

GNW increased 2.2% YTD in 2024, following a period of significant outperformance during the preceding 8 quarters vis-a-vis the S&P 500.

GNW trades at a discount to its 81% ownership stake in Enact Holdings (ticker ACT), which at the end of Q1 was valued at $4.6 billion (or 30% greater than GNW’s $3.5 billion aggregate enterprise value, up from 17% six months ago)…” (Click here to read the full text)

While we acknowledge the potential of GNW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GNW and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.