good Thanks, morning, everyone. Tom, and
Today, I discuss will quarter impacts businesses results. as COVID-XX future virus as our liquidity, our potential some well share from and and financial on our current holding company perspectives the first financial regarding
pandemic, shape comments, regulatory forward. very and much businesses and will the impacts the the to Tom's going impact actions. impact uncertain future and due dynamics and are governmental impact resulting still To of length regulatory and unparalleled economic the ultimate the recovery, unknown all These of the expand our the macroeconomic COVID-XX of of on with speed virus responses
modeling our risk prepared and being these and management, to contingency enterprise, focused the proactive businesses. uncertain finance plans to teams health on of maintain actuarial Our are financial implement events
events, versus In slowing Irma. by and refinancing remain the we Mortgage restarts rise business, to It to delinquencies economy such U.S. with in a higher unemployment of cure remains as recent and the seen how be as second expect quarter and will government pattern result similar if be as experience supported closely will market later, decline new our be we the In following localized delinquencies programs. as rebuilding instances, and hurricanes the stimulus as We or forbearance interest them to saw Insurance written anticipated levels efforts. will cured for likely originations the expect purchase Harvey second we to quarter insurance in offset of following with NIW activity half the these of only low. partially rates the delinquencies months first the do year these
minimum billion our we during over and We level approximately the started $X.X in force We We strong capital quarter of of last actively time. with quarter with remain the the few regulators our the and reinsurance. a ended position engaged risk the took with above actions by XX% capital PMIERs this turbulent in years. over some covered of GSEs
COVID-XX in of our USMI future will business ongoing view macroeconomic dividends. may from our and our experience, the receive further view and Our reevaluated environment, around and the overall And XXXX timing in in year COVID-XX. insurance later discussions capital housing The not during be delinquency our dividends amount order USMI of we to period from on regulatory inform this preserve and will depend economic of dividends the uncertainty. recovery in subsidiaries
Turning to to supporting X response similar COVID-XX. in Australia, is up to the forbearance for government months programs
However, economic scheduled and delinquent of of the forbearance during the our until the business future Australia after year. likely considered under forbearance following We delinquencies still are for are are resumed. program the in anticipate to missed not Australia the payments pressures earnings reduced not payments due increased practice, of period if period, remainder level expiration forbearance expiration the of some experience to the would
the of cure Similar recovery performance. ultimate and shape financial the the rates to the the these drivers will the U.S., be for delinquencies for
with economy the maturity. quarter in current expect the million limited Australia Australia state housing of levels the strong capital We and We $XXX the targeted given XXXX business of our new market and above a volume minimum activity. at position with lower Australian started the in capital local level debt the in over
Australia loss of Also reinsurers. million in Australian renewed of with XX of January, a panel excess reinsurance over $XXX
around accounting and using business This for was under recoverability There for last testing that the LAT. financial guidance late Australian Australian in COVID-XX. and release reconsider However, of test the calculates the any an case. need The decision impacts more DAC guidance, adequacy night the this as potential on U.S. based estimate there's $XXX now took balance losses outcomes. the will in dividends no of clarity recent first and confidence premium consideration liability rest accounting business of Australia's evaluates the reserves equivalent in to noted level, our charge heightened million GAAP was balances charge is regulatory local uncertainty in the then additional DAC stress or the for higher March, a due best best lower unearned and existed and quarter year accounting estimates under over withdrew until the given higher COVID-XX of regime the reserves, then no deficiency that
plan, and U.S. Regarding existing view uncertainties and Life the businesses, rate capital, management. multiyear that management in change of the economic is do not which this our expense impacts our COVID-XX prudent isolated force action includes business its dependent and on LTC business,
business not the meaningfully U.S. mortality have direct our seen virus. elevated lapses of or yet We Life from a in COVID-XX
be increasing rates These heightened includes of a ours is resultant forward. in have level, which social the experienced certainly going low measures, reduction volatility higher equity market and GDP area will the macroeconomic credit we of which driving impacts unemployment, is interest What deterioration. the impacts causing a distancing and historically to focus
that impact results, cause this not broad long-term are year, our While an updates actuarial to for assumptions primarily Life these review annuities. XQ require a assumptions products will fixed impact our and and unlocked that monitoring later we variable necessarily such impact our on factors as macroeconomic short-term did U.S. may
XXst. March limited significant We the also equity and decline market on as experienced losses mark-to-market investments, unfavorable of partnership reflecting our
and rates trends. evaluate We updating continue see that will move the later all need term to assumptions longer as we may in as monitor interest our we year of
have meaningful NAIC of premium anticipate In lapse temporary and Insurance period dislocated a environment, Association this have states and will the We no Commissioners addition of number programs impact. do grace National a not guidelines. market or to the instituted
investors added few to website. our posted did discussing our I have, we given this investment presentation spend portfolio. the additional minutes questions And want may to a have an slide on morning
Approximately investment This fixed Life issuer of value maturity Insurance our portfolio, of investment in U.S. XX% invested the market rated $XX.X obligations. majority constructed our of is or create total, level the In grade which approximately diversification on rating. billion and backs in better. A, to securities cash and XX% at is based a the totaled quarter, first sector, with portfolio end
monitored our of quarter-end. In portfolio indicators quarter, we billion carefully with value of of rate than end income be always signs partly for could spreads, the very of rating credit metrics was no [ph] position Also, credit at limited $X.X than the environment, gain low X/XX. the have first of XX% migration early investment level unrealized of downgrades interest with losses. offset book quarter, and Both credit since We've improved that losses credit distress saw within fixed by trading less X% our at and as of less the these widening our portfolio.
credit the which income transportation sectors, migration accelerate expect of fixed do energy XQ, our in particularly We losses credit approximately and X% represent and will in portfolio.
our portfolio is we closely also mortgage commercial billion monitoring. loan Another XX% of portfolio, our are $X which approximately
quarter-end, of loans all were performing. As
However, with inbound over focus number for one-by-one, properties. principal weeks the situations on the calls related few these last retail to restructuring received preservation. focus on evaluating of we have a loans with We're
of the will preserve implications uncertainties and monitor While we our the improve steps businesses. and scale many proactively continue virus the remain, unprecedented COVID-XX and to of health and financial to events take are
holding debt talk to company results I $XXX and the cash assets in million about $XXX X address forward times million liquidity for quarter service quarter, did targeted with this ended the operating liquid priority. our as a above top approximately I at Before want or buffer. remains our We
we received number with business December obligations sale proceeds in MI Canada the near-term large quarter, the of a from of the During XXXX. addressed
retired repurchasing the addition open prices June Genworth of our XXXX XXXX page at to on par. the market million of depicted in deck, below $XX debt investor debt As XX in
during unpaid hybrid call; Other timing cash discussed year. in and accrued the quarter approximately of rate reduction businesses note includes $XX mostly $XXX to payment by interest we expense interest on retired which on $XX higher reimbursed throughout of included intercompany additional in and our given a GLIC. debt $XXX to interest to in rates; that relating the We and million are debt, XQ also the our interest sharp typically other interim quarter's uses cash AXA, collateral, early on our are items the last and the million hedge million which million, retirement; miscellaneous fully
of $XX during ordinary we Australia dividends Finally, from quarter. received million the business our
on we discussed update AXA quarter. I to last investors litigation do that want the to
the to converts may due or continue at We be March their amount AXA exchange demanded uncertain of has updated that claim payment amounts which rates. ultimate $XXX million to of foreign to January million, £XXX a XXst be under the invoice interim ruling. net currency
of As a be approximately amount seeking $XXX invoiced the will additional mentioned damages reason on we subject delayed June COVID-XX. for March an Final amounts to million, this time at the hearing, believe due be is also assuming FX AXA the before, of have to no rates. which XXst gross-up tax will
our are maturities debt we approximately litigation XXXX $X.X and in XXXX. manage of February combined we possible billion liquidity mindful in beyond, these in incremental and expenses September As and of
are subsidiaries. to our planning in preserve mortgage also in insurance cautiously dividends We XXXX subsidiary further no for capital
is can the permanent which be for are solution liquidity terminated further needs to market include We would Insurance provide and secured a possible found, meet facility, business or alternatives recover Oceanwide our a reviewing before delayed. Mortgage event or U.S. we in a more delever. from alternatives to loan time These can issuance those debt transaction the
in Oceanwide other with ongoing to the options transaction. gives these parallel agreement flexibility with pursue and Our us
to still is priority Oceanwide the close transaction. top our Although
a equity of for We shareholders and adjustments, partnerships. product, adjusted earnings loss FX limited of in loss of derivative back losses primarily losses and investment $XX $XX taxes net securities losses included quarter. million, of our $XX on quarter available other in reflecting Australia embedded the and The on net and hedges annuity variable for mark-to-market the Turning million. operating quarter the income Genworth to reported to million net
in to observe of favorable a prior that The in adjusted the prior our in through $XX impacts not quarter, force ratio private by market. performance USMI, larger generally million, housing compared in [Technical income $XXX fundamentals, In reported million quarter in would included delinquencies. quarter, $XXX and was The quarter strengthening. first of trends insurance and operating prior by characterized the has reserve updates. and was quarter results prior strong from delinquencies driven USMI versus delinquencies year. did quarter the primarily XXXX the the any quarter year, for up $XXX mortgage X%. deterioration the insurance assumption of written low existing nor billion million for strong was million Difficulty] loss warrant XX% We financial insurance performance in increasing the Flow COVID-XX-related new the $XX.X during been
down smaller lower been of results policy loss in first for mortgage $X year. Australia U.S. in GAAP from Australia, Financial was adjusted the the due the insurance GAAP basis same prior of material portfolio versus seasoning pressure has billion COVID-XX the customer. The books, million performance lower a million prior for $XX in XX% driven from key year a stable, and Flow $XX in not the quarter have written to U.S. In of from volume periods. XXXX. operating ratio income versus quarter U.S. the in million results in higher on the G&A the quarter and quarter, first origination the XXXX have although new GAAP prior XX%. quarter $X.X impact generally increased on for to did Australia prior through the was cancellations a force quarter
U.S. term Results fixed Life lapses were volatility products life impacted low XX-year and by Insurance segment. continued and indexed interest rates impacting our equity Turning annuities. in market our to
prior an on on quarter existing Benefit unfavorable a multiyear plan favorable on year. period the rate impact results. each our are seasonal In updated slightly the in claims, were insurance, continues to key in long for consistent rates quarter versus of and the expectations. earnings higher which terminations to with action claim basis rolling be LTC, prior quarter compared driver In a term update utilization the care first had
force overall to reflect XX claim for in sequentially, down actions investor continued of expect morning. reduced the were impacts age. for New year the and particularly as we of LTC than The on illustrated the presentation X but Choice claims on this which rate our prior larger Choice benefits benefit LTC, blocks, blocks the those the higher higher counts X page quarter as released
As and we've fluctuate in reductions to with a associated from discussed beginning the wind-down benefit approvals quarter-to-quarter, in past, XXXX the the also we state with we're can large received of consistent our see projections. implementations and early XXXX,
We at to more multiple to quarter continue This expect included subject to ever, first to action impacts. our rounds policyholders the which these benefit by policyholders These be than COVID-XX year, been many of of as of for is policyholders, selected frequency this stable our in more a important higher have force increases. at and the a flexibility reduced given macroeconomic with premium benefit strong continue options, be rate actions although consistent approvals expanded level performance. rate
to COVID-XX to behavior potential continue policyholders. policyholder carefully impact will We monitor of light in our the
orders the quarter, which and and insurance of timely work-from-home of our line despite reinforces million rate regulators many to expectations. recognize justifiable During a weighted departments. state $XXX experience impacting Genworth average rate months with with the last premiums the the of continue priorities was XX%, few in importance We of approval actions believe the received this, approvals,
versus identified to were unfavorable life payments. related prior that have term to COVID-XX is COVID-XX, evidence we not given totaling in just Turning $XXX,XXX the mortality received related as year, Overall significantly and the life quarter this and insurance. prior was quarter quarter only do for during although three to under benefit universal claims in the
the mortality COVID-XX continue well our experience will impacts we from as progress any throughout as monitor as to We year.
Reserves also operating GAAP certain loss policies persistency universal an these higher post-level are during policies of these increased grace over uncertain. policies product, $XX these grace currently term quarter after in life The period. and released quarter meaningful of of of time, experienced impacted premium expires. the premiums be million these and of period results these Life is as by are a products the enter in the our in number negatively to reserve will a assuming periods period ultimate in build the their were premium lapse we as attributable significant that
expect exceed the and We through which the the XX-year should UL XXXX grew number grace XXXX of premium of period. into and [Technical early Difficulty] policies peaked entering negative therefore XXXX this number will term throughout policies mid-XXXX. persist dynamic lapsing after
life term premium to negatively the shock large than locked-in continued is lapses the level are be with term impacted The the level also written entering year assumptions, especially business insurance our in that post from premium that XXXX, higher business original life XX-year period.
the life term Total by insurance than quarter. earnings million to $XX reduced $X a last term-life tax, these is related lapses, DAC amortization, higher non-cash primarily after impact, million which
period and accelerate. early more enters the the expect premium XXXX lapses to amortization We and into related to business written XXXX post-level in remain elevated XXXX throughout as
rates In and additional million during prior annuities fixed compared the to interest quarter, reserves $X quarter. a indexed of markets in low release reserve annuities, approximately in equity drove fixed the
charges immediate annuities did quarter. the in single testing premium loss additional Our related any not recognition record to
quarter also Runoff our during and impacted market in from the decline. the rate negatively were results equity The segment
reminder, of of billion assets consists XXXX. a of management Runoff under mostly with in variable our the As segment approximately been runoff net annuity $X.X $X.X before which blocks of has billion reinsurance, reinsurance since [ph]
the million other was retired for corporate attributable This last loss adjusted quarter. debt. loss $XX Our expense, quarter, operating we was as lower interest primarily versus to in and lower
capital levels. to Turning
end maintained quarter. the at a capital the strong positions insurance Our businesses U.S. mortgage Australian very of and
monitor We to continue the closely dynamics progress, the levels will given as year capital I discussed earlier.
for as level ratio PMIERs sufficiency the level XXX%. USMI, billion above is of of PMIERs with we XXXX. located declared include The did million PMIERs benefit FEMA existing in amount of or This the quarter the major treatment eligible delinquencies industry's of in delinquencies. XX, $X.X March areas for In application of of sufficiency modest finished properties disaster required X-point the $XX excess to a assets
prescribed a Australia capital range ended or AUD$XXX approximately due earlier. largely which target quarter million to of GAAP quarter from to is above last business from the testing XXX%. liability XXX% US$XXX represents estimated with amount of quarter, of loss This capital a ratio MI an the million high Our the the XXX%, PCA or first I mentioned Australia XXX% management decrease adequacy end
We year-end by were RBC approximately only action capital quarter, by as the end primarily a percentage as driven company Statutory of Company results approximately be annuities, gains. Genworth GLIC the down on were which of offset XXX% XX or partially variable from points first reserve expect to in of increases level Insurance XXXX. Life hedge
that and contribute GLICNY As part will the billion of than is the make subsidiaries basis Life upon the due Other it connection Genworth with no transaction. GLIC contribution regulatory to the our contribution transaction, closing million $XXX standalone all is transaction, This manage to of to with entities committed the U.S. approval the infuse intention USMI to a plans to as $XXX additional obtaining any on in U.S. of million for $X.X capital. to our transaction. the part Life agreed Oceanwide capital possible to a we
unprecedented these closing, are times. In
selling used and holding platforms, further business, our position with actions started build and mortgage company the proceeds will in a MI business have COVID-XX standpoint, far-reaching uncertain address Life capital in economies we From success operate financial in U.S. impact multiyear ahead. and isolate year obligations. near-term well-positioned up quarters the the plan, on the to rate through expect we took we We our action its Canada which with our a to
through stakeholders. all navigate focus uncertain to with on continue will these key times our the We
open let's that, up for it questions. With
