Q2 2022 Genworth Financial Inc Earnings Call
Yes.
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Good morning, ladies and gentlemen, and welcome to Genworth Financial's second quarter 2022 earnings Conference call.
My name is Katie and I will be your coordinator today.
At this time all participants are in a listen only mode. We will facilitate a question and answer session towards the end of this conference call.
The conference is being recorded for replay purposes also we ask you refrain from using cell phones speaker phones or headsets during the Q&A portion of today's call.
I would now like to turn the presentation over to steer a cruise director of Investor Relations. Please go ahead.
Thank you operator, good morning, and welcome to Genworth second quarter 2022 earnings call. Today, you will hear from our President and Chief Executive Officer, Tom Mcinerney, followed by Dan Sheehan, Our Chief Financial Officer, and Chief Investment Officer.
Slide presentation that accompanies this call is available in the Investor Relations section of the Genworth website, Investor got Genworth Dot Com, our earnings release and financial supplement can also be found there and we encourage you to review these materials.
Following our prepared remarks, we will open the call up for a question and answer period. In addition to our speaker Ryan <unk> President of our U S life insurance segment, and Jerome Upton Deputy Chief Financial Officer, and controller will also 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.
<unk> advises 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.
This morning's discussion also includes non-GAAP financial measures that we believe may be meaningful to investors in our financial supplement earnings release, and Investor materials non-GAAP measures have been reconciled to GAAP, where required in accordance with FCC rules.
Also references to statutory results are estimates due to the timing of the filing of the statutory statements and now I'll turn the call over to our President and CEO Tom Mcinerney.
Thank you Sarah good morning, everyone and thank you for joining our second quarter earnings call.
Genworth delivered strong performance in the second quarter, making continued progress against our strategy to strengthen our financial foundation and create value for our shareholders.
Our strategy is designed to deliver long term growth, while also protecting shareholder value and downside scenarios, which is especially important in today's difficult market environment.
This challenging macro economic backdrop is driven by a confluence of competing factors, including high inflation rising interest rates, new COVID-19 variance equity market volatility and a tight labor market the combination of which has created economic uncertainty.
Well, we should not compare this period to other market downturns I believe that the expected sharp increase in interest rates by the federal reserve to mitigate historic levels of inflation will likely adversely impact the economy in the near to medium term and continuing to create market volatility.
From where we stand today, however, I believe genworth is well positioned to weather this volatility and economic uncertainty because of the strong levels of capital in our businesses are conservatively positioned investment portfolio, a very low debt to capital ratio and modest annual debt service obligations.
Our execution against our strategic priorities reinforces that positioning as we continued to deliver strong performance from our <unk> subsidiary reduce holding company debt and returned value to shareholders in the form of share buybacks.
First let me review, our second quarter results at a high level U S. GAAP net income was 181 million for the second quarter, while adjusted operating income was 176 million or <unk> 34 per share.
These results were led by an act, which reported a 167 million and adjusted operating income.
Life reported adjusted operating income of $29 million for the quarter, driven by LTC insurance or fixed annuities, partially offset by losses in life insurance.
Turning to statutory results in Genworth life insurance company or click we had an estimated pretax statutory loss of approximately $60 million the losses.
Primarily driven by equity market volatility, which required us to adjust reserves and capital in our closed block variable annuity business. Our estimated RBC ratio was 290% as of quarter end.
Final statutory results will be available with our second quarter statutory filings later this month.
Okay.
<unk> continued strong operating performance and a slowing housing market has delivered shareholder returns, including stock price appreciation and dividends of over 19% since the IPO in September of 2021 through Fridays close despite meaningful bunker volatility during that time since the IPO Genworth has received honor it.
And 82 million in dividends from nap, including $19 million in the quarter.
So all of our shareholders benefit from our ownership of <unk> through its quarterly and special dividends, which enabled us to execute against our strategic priorities, including debt reduction share buybacks and the continued development of our long term growth strategy through global care solutions and.
In addition, the market value of <unk> has increased over the last several months and then access trade it in line with comparable peers.
<unk> continued to deliver strong performance as a result of its differentiated strategy balance sheet strength outstanding management team.
<unk> ability to mitigate risk while building a high quality book of insurance in force.
Our next Standalone book value, excluding OCI has increased from $3 9 billion at the end of the second quarter of 2021 to $4 4 billion at the end of the second quarter of 2022.
The business continues to operate from a position of strength righting meaningful levels of NSW and benefiting from higher persistency.
Tony has had strong loss performance, which has allowed us to release reserves excess reserves in the first and second quarters.
And that also continues to maintain a strong balance sheet and strong regulatory capital ratios and executed a $200 million revolving credit facility, providing additional financial flexibility going forward.
Both <unk> and Genworth ratings have steadily improved since the IPO as a result of <unk> strong operating performance and capital levels and a significant deleveraging actions taken by Genworth.
These factors demonstrate our execution against our strategic priority to maximize the value of an act to Genworth shareholders.
Genworth Deleveraged deleveraging has improved our credit profile and we continue to focus on reducing our debt and paying off the remaining 2020 for that by the end of the third quarter, which would bring genworth parent debt to 900 million. This would also bring our debt to capital ratio down to one of the lowest in the life insurance industry, which positions.
As well to weather the market uncertainty in the next 12 to 18 months in.
In the second quarter, we repurchased approximately $48 million of our 2024 debt, leaving approximately $152 million in principal outstanding.
Given our holding company cash position the quarterly dividend from an act and the expectation of receiving a significant special dividend from enact later this year, we plan to retire the remaining.
The remainder of the 2024 debt in the third quarter of 2022.
On July 21, we received another ratings upgrade from Moody's our fourth upgrades from the rating agencies since September which reflects our much improved financial and leverage position.
Upon the retirement of our 2024 debt our credit profile will be enhanced even further and we believe we will be well positioned for rating agencies to continue to reflect those improvements.
As we announced last quarter, given our positive free cash flow outlook balance sheet improvements and continued strong operating performance.
<unk> authorized a share repurchase program of up to $350 million in.
In the second quarter, we repurchased $15 million worth of outstanding shares and subsequent to quarter end, we have completed an incremental $15 million in total we have repurchased over seven 9 million shares at an average price of approximately $3 80 per share.
We remain opportunistic when it comes to buying back shares and believe it is a very effective tool to return value to shareholders in the near term.
As previously mentioned, we expect the majority of our repurchase activity to occur. After we retire the remaining 2024 debt in the third quarter beyond repurchases as we continue to build significant excess cash the board intends to consider paying a quarterly dividend to genworth shareholders in 2023.
With respect to a potential longer term cash flow I wanted to provide an update regarding our settlement with axa and potential recoveries in that case <unk> made a strikeout application in the U K court, which is similar to a motion to dismiss in U S courts. The court recently ruled on that application mostly in <unk>.
Axis favor. This is an excellent development, allowing the case to move forward based on the court schedule and the amount of time. It has taken to get to this point, we believe that a trial in this case is not likely before the first quarter of 2024, we will continue to communicate with Axa seeking to move the case ahead as quickly as possible.
With respect to the potential of recoveries and the Axa matter as we've said before it is premature to predict the amount of potential recoveries. What I can say is that with interest access presently seeking an excess of 800 million from Samsung there based on the current complaint and that amount is likely to be updated at some point.
It's actually prevails in its claims Genworth has significant upside and recouping a significant portion of the approximately $830 million. It has paid and its settlement with axa.
Longer term, we are focused on creating value through the development of our long term care growth strategy to become a comprehensive provider of long term care services and solutions. We continue to take a consumer led approach to this new business and are primarily exploring opportunities and long term care services and care navigation.
As we seek to quickly shift from strategy development to testing and implementation. We made a critical hire in the quarter Dr. Tim packed joined global care solutions to lead our elderly care services business in the U S. Tim is a tested entrepreneur and the elder care space and Harvard trained emergency medicine physician.
He founded to technology enabled Cursors care services businesses coal mine and curve health called.
<unk> was a medical technology startup committed to redesigning health care for seniors by reducing unnecessary hospitalizations through Hulu through a human centered design and scale from there Tim Leverages learnings from call nine to build this next business curve health, which is a telemedicine and data hydro startup connecting <unk>.
<unk> to chronic care patients in long term care and post acute settings, including in nursing homes assisted.
Assisted living and home care I.
I am pleased to welcome Tim who has hit the ground running with a global care solutions team as he focuses on implementing our strategy, which will initially be focused on care services navigation and select test markets next year.
Shifting gears I want to briefly touch on our priority to further stabilize our legacy long term care portfolio through the continued execution of our multiyear rate action plan or my route.
We have achieved $153 million in annual premium rate increase approvals year to date through the second quarter, bringing our cumulative progress against the <unk> My Rep program to $20 7 billion on a net present value basis since 2012.
In closing I am very pleased with our progress during the first half of the year and believe Genworth is well positioned to wet weather whatever comes at us in the second half.
<unk> has a very strong balance sheet expectations of continued strong cash flow from an act and improved ratings further I look forward to continuing to develop our long term growth strategy and long term care as we seek to redefine the future of long term care.
With that I'll turn the call over to Dan to provide more details on our second quarter results, our financial position and our capital allocation strategy going forward.
Thank you Tom and good morning, everyone in the second quarter, we generated strong operating results and continued to enhance our financial position amid a challenging market backdrop.
We're especially pleased with the strong earnings and cash flow delivered by an act.
The return of capital to shareholders and the continued deleveraging of our balance sheet.
As Tom mentioned in the second quarter, we repurchased $48 million of our 2024 debt maturity.
Leaving a balance of $152 million, which we plan to call later this month.
Willing us to have it fully retired by the end of the third quarter at that time, we will have $900 million of debt outstanding achieved.
Achieving our strategic priority of less than $1 billion of debt.
Moody's investors service recently recognized our enhanced financial strength with a two notch upgrade to <unk>, reflecting our improved liquidity position and financial flexibility.
We're pleased that our ratings continue to reflect the substantial progress we've made which in turn have had favorable impacts to genworth and enact.
We will continue to work with the rating agencies to ensure their views reflect our enhanced credit profile through ratings improvements.
Terms of returning capital to shareholders, we repurchased $30 million of Genworth stock to date, representing approximately 8 million shares at an average price of approximately $3 80 per share.
Approximately $320 million remaining on our authorization.
Once we reach our debt target and begin to accumulate excess cash will be in a position to increase the pace of our share repurchase program.
Now I'll turn to a detailed discussion of the second quarter results beginning on slide five.
Second quarter net income was $181 million and adjusted operating income was $176 million or 34 cents per diluted share.
In the prior quarter, we had net income of $149 million and adjusted operating income of $131 million 25 per share.
Results in the current quarter were higher reflecting adjusted operating income of $167 million from enact 21 billion from our U S life insurance segment and $2 million from our runoff segment.
Partially offset by an adjusted operating loss of $14 million from corporate and other activities.
Interest rates continue to rise in the current quarter and the short term higher rates will cause flowing bond call and commercial mortgage loan prepayment volumes.
But we will benefit from our inflation protected and floating rate securities.
Portfolio yields will also benefit as we are able to reinvest new money at higher rates.
In the second quarter, the purchase yields for long term care.
They've been in three years.
For an act rising rates will support a more meaningful yield impact due to the shorter duration of the portfolio.
Given that enact hosted its earnings call earlier this morning, and provided a thorough update I will focus on the key highlights.
As shown on slide five <unk> adjusted operating income to Genworth was $167 million, an increase of 24% from the first quarter.
Turning to slide six insurance in force increased 9% year over year to 238 billion driven.
Driven by strong new insurance, written and higher persistency, given rising mortgage rates, which principally reduced refinancing activity.
Moving to slide seven current quarter results reflected a favorable $96 million pre tax reserve release, which drove a loss ratio of negative 26%.
The reserve release was driven predominantly by elevated cure activity related to COVID-19 delinquencies.
The estimated pmiers sufficiency ratio of 166% or approximately 2 billion above published requirements remained strong and was down slightly versus the prior quarter, primarily from an axe operating company distribution to its holding company.
We're very pleased with <unk> continued strong performance in the second quarter, which also marked our first quarterly dividend payment of <unk> 14 per share generated approximately $19 million to genworth.
Quarterly dividend along with the potential for additional return of capital from an act later this year.
Continue to strengthen our holding company balance sheet.
I will now cover our U S life insurance segment results starting on slide eight.
Segment reported adjusted operating income of $21 million.
Reflecting operating income of $34 million from LTC and $21 million from fixed annuities.
Partially offset by an operating loss of $34 million in life.
And our LTC business adjusted operating income was $34 million compared to 59 million in the prior quarter and $98 million in the prior year.
Current quarter results reflected lower terminations in both our claim and healthy life populations as mortality declined and.
In the first quarter, we generally see higher seasonal mortality.
Decrease in the second quarter.
In addition, the elevated mortality we've seen since the second quarter of 2020.
Onset of the pandemic was lower in the current quarter, which is consistent with nationwide COVID-19 mortality trends.
The sequential decrease in active claim mortality counts can be seen on slide nine.
During the quarter, we reduced our previously established COVID-19 mortality reserve like $15 million pre tax, bringing the remaining balance to $110 million.
You did see a higher level of pending new claims in the first half of the year compared to 2021 and indication that new claim incidents while still below 2019 levels as shown on slide nine could grow and trend back towards historical levels.
Claims severity continued to increase in the current quarter, primarily reflecting expected aging of our newer blocks of business, which tend to have higher inflation coverage and daily benefit amounts than the older blocks.
In addition, during the pandemic.
Largest share of our claimants that homecare instead of facility based care and in recent quarters, we've seen that trend reverse.
We continue to make significant progress in addressing risk in our legacy LTC portfolio through the multi year rate action plan as you can see on slides 10 and 11.
During the first half of 2022, we received LTC in force rate action approvals impacting $487 million of premiums with a weighted average approval rate of 31%.
The resulting $153 million in annual premium rate increases brings the total net present value from achieve LTC rate actions to $20 7 billion since 2012.
Up approximately $1 1 billion since year end.
Reserve releases, resulting from benefit reductions decreased from the prior quarter and prior year as the implementation of the choice one legal settlement was materially completed in the first quarter.
The pending settlement related to Pcs, one and two policies, which combined represent approximately 15% of our LTC block became final on July 29th.
We expect to begin implementation of the settlement in the third quarter, but given the 90 day policyholder election window, we would anticipate financial impact beginning in the fourth quarter.
Because the mailings occur in the policyholder anniversary date, the majority of the impacts will be in 2023.
We have also received preliminary approval from the court on the pending settlement related to our choice II policies, which represents approximately 35% of our LTC block.
Final court hearing to approve that settlement is scheduled for November .
Should we receive final approval and have no appeals.
I would expect to begin implementing the settlement 2023.
The two new settlement agreements are similar to the choice one settlement and depending on policyholder election rates and the types of elections chosen we would expect overall favorable impacts.
Turning to slide 12, and our life insurance products, we reported an adjusted operating loss of $34 million.
Appeared to operating losses of 79 million in the prior quarter and $40 million in the prior year.
Key driver of the improvement seen in the current quarter was lower mortality.
COVID-19 claims accounted for only $3 million of loss, which was significantly lower than the prior quarter.
In the current quarter totaled term deferred acquisition costs or DAC amortization was $22 million after tax which was higher than the prior quarter. Prior year, primarily from an increase in lapses as our 20 year term block issued in 2002 experienced higher lapses as it exited the level premium period.
We recorded a $12 million after tax charge for DAC Recoverability testing in our Universal life insurance products related to <unk> block runoff and mortality experience.
Year to $19 million in the prior quarter.
$13 million in the prior year.
Regarding fixed annuities adjusted operating income was $21 million compared to $16 million in the prior quarter and $13 million in the prior year.
Reflecting higher mortality in our single premium immediate annuity product and lower DAC amortization in the fixed index annuity product due to the rise in interest rates.
And the run off segment, our adjusted operating income was $2 million for the current quarter compared to $9 million in the prior quarter and 15 million in the prior year.
The runoff segment is made up primarily of variable annuity and variable life insurance products with $3 9 billion in assets under management and is 22% smaller and at the end of 2020.
Current quarter results were adversely impacted by the unfavorable equity market performance.
As indicated on slide 14, we are estimating the consolidated risk based capital ratio for Genworth life insurance company or click to be 290% at June 30th.
The slight decline from 296% at March 31, and in line with 2021 year end results.
The decrease reflects the impact of unfavorable equity market performance on our variable annuity products, which is more pronounced in our statutory results and GAAP adjusted operating income.
You will see on slide 14 that the statutory balance sheet in the U S life companies has strengthened materially over the past few years, the significant improvements in the capital and surplus amounts and unassigned surplus.
As a reminder.
Life insurance industry will be implementing a new accounting standard in January 2023, the long duration targeted improvements or L. DTI, which will require us to represent our GAAP financials from January 2021 forward.
This change impacts our U S life insurance, and <unk> segments, but not the enact segment or corporate and other.
And it will not impact our economic value cash flows.
Naturally accounting for how we manage the business.
We are on track to implement this major accounting change and we will provide an update on our progress and anticipated transition impacts later this year.
Turning to the holding company on Slide 15, we ended the quarter with $228 million of cash and liquid assets.
Cash activity included an inflow of $58 million from net intercompany tax payments.
$19 million dividend from an act as well as a $49 million outflow, reflecting debt reduction.
As I noted earlier, we expect to achieve our debt target of $900 million in the third quarter.
Once we accomplish that milestone our next debt maturity is not until 2034.
In addition, the ongoing quarterly dividends from an act will more than cover our debt service costs of approximately $50 million per year.
We also expect to receive an additional return of capital from an act in the fourth quarter of 2022.
Based on an ex expectation to return approximately $250 million to its shareholders in 2022 and adjusting for our majority ownership of 81, 6%. We would expect to receive approximately $150 million of additional return of capital to Genworth.
For the quarterly dividend payments from an act.
Further we continue to expect the holding company will receive approximately $200 million to $250 million from net intercompany tax payments this year.
This expectation is subject to the taxable income generated by our subsidiary businesses and given the potential for macroeconomic headwinds it could change.
In the first half of the year, the holding company has received $122 million and net intercompany tax payments.
We expect our holding company tax attributes to be exhausted in 2023.
Our capital priorities, which guide our capital allocation decisions remain consistent.
Upon reaching our debt target at the end of the third quarter, we will deploy our excess cash towards our growth initiatives and shareholder return initiatives.
Our first priority will be investments in growth, namely our global care solutions business, where our initial focus will be on long term care advice and service offerings, which are less capital intensive and insurance offerings.
We will also maintain our commitment to returning capital to shareholders through share repurchases.
We continue to believe our stock price is trading below intrinsic value and that repurchases are an effective way to capitalize on that disconnect for returning value to genworth shareholders.
Before I close I wanted to note that despite the 2 billion unrealized loss balance in our investment portfolio because of the significant increase in interest rates in the second quarter. Our credit profile remains very strong with ratings upgrades in the general account meaningfully outpacing downgrades the.
The investment portfolio remains well positioned to manage through the current economic uncertainty.
In fact, we proactively managed our holdings head of Russia's invasion of Ukraine, and have no remaining direct exposure to either country.
And of course, we're investing new money at the most attractive yields in many years.
In closing I'm pleased with our results this quarter and with the continued progress toward our strategic goals.
Outstanding performance from an act continues to provide a steady cash flow stream, which will allow us to meet our debt target in the third quarter and generate excess cash flow moving forward.
We continue to make progress closing the gap in the legacy LTC book.
In the life company balance sheet remained strong in the face of economic challenges.
While there continues to be uncertainty around the current economic environment I am optimistic that genworth is well positioned to continue to perform and execute on our strategy.
With that we'll open it up for questions.
Thank you ladies and gentlemen, we will now begin the Q&A portion of the call. As a reminder, please refrain from using cell phones speaker phones or headsets. Please press star one to ask a question.
Anytime you question has been answered or you would like to withdraw your question. Please press star two.
It will be removed from the queue. Please press star one now.
We'll take a question from Ryan Krueger with K B W.
Hi, Good morning. My first question is on the intercompany tax attribute.
Was your comment.
That the tax attributes will be exhausted at the end of this year and you would not expect a further benefit in 2023 or would you expect some further benefit in 2023 before they are adopted.
Thanks for the question and we'll give that one to Dan.
Thanks, Tom.
I guess the way I would say today is that there is a still a lot of uncertainty in the economic environment.
We will use the majority of the remaining tax attributes.
In 2022, and ultimately exhaust them.
At some point in 2023 and that could be mid year, it could be a little earlier or a little later just depending on the subsidiaries' results.
Got it.
And then on the.
The asset can pay their lawsuit can you just remind us how the actual sharing of the recovery work is there a specific percentage of a recovery that you would receive but can you give any more color there.
I think Ryan I really can't add much to that other than what I said in my remarks.
To the extent that Axa prevails in the litigation given that we've.
Reimbursed axa for a significant amount of losses. They had we would expect significant recoveries, but exactly how that will play out.
It's to be determined as we go through the litigation process or accidents, and Antero goes through the litigation process.
Got it and then last question is on global care solution.
Can you give us any.
So how are you thinking about.
The financial impact of this.
And over what timeframe.
May start to generate income from net new business.
Ryan Good question. So I would say first of all it's a capital light business. We're not it doesn't we don't need ratings, we don't need.
To put in capital to cover.
Risk bearing like we did with like we have with the legacy business.
And so I think it's.
It's going to be based on a digital.
Digital technology platform and what we're basically going to be doing in this first phase is we.
We will we have.
The nurse network about 35000 nurses so.
Whether it's to Genworth.
Policyholder or.
Someone with no existing relationship with Genworth will assess the disability.
Recommend a care plan and then we are going to negotiate and develop a preferred provider network based on quality and discounts and so we would then expect to once we come up with a care plan with our new client.
<unk>.
We refer them into the preferred network that will get a discount and the revenue profit margins for us will be based on.
Bob.
The client will will paid genworth a fee for that.
Assessing the claim coming up with the care plan and getting them placed within a high quality provider wherever they're located so the profit margins will come from.
Yeah.
The client with an all in the client will pay less than they would if they did this all on their own. So we do all the work for them get them placed.
And we earn a fee on that.
It's hard it's hard to predict as I said, it's not a lot of capital.
Other than to cover working capital cost the cost of the employees that we will be hiring.
Engineers to develop the software so those would be the expenses and then.
We do expect there that's about $50 million.
The baby Boomers will ultimately need care.
And theyre going to need advice and services, it's a very fragmented market. Today. There is there are some fintech companies.
That are doing similar things to us, but most of them are one stop.
Shops, and we think we can provide.
Total service for an all in cost to the client less than they could do on their own so yes.
As we grow the business.
There's a lot of leverage and it should be fairly high return business given that it doesn't require a lot of capital.
Thank you.
Okay.
We will take our next question from Geoffrey Dunn with Dowling and partners.
Thanks, Good morning.
Wanted to revisit the prospect for share repurchase and your assessment of intrinsic value.
When youre looking at the intrinsic value of GSW.
Is that the cash flows and balance sheet. Excluding life platform are you factoring any.
Value to the legacy life platform that you currently have.
I think what we've been saying Jeff for many years is when we look at intrinsic value, we look at the value of an app.
And we assume the intrinsic value over.
The housing.
Cycle and so generally our view is.
And after the <unk> trade at one times book or better. So that's how we value an app and then for now we're putting zero value in for the life companies I do think we could find down the road for the legacy business.
Life and annuity business clearly has some capital associated with that.
And that has some value and then obviously, we're not assuming any value yet for our new business, but we think that ultimately could have value and then so it's really.
The intrinsic value of an act as we see it as I described.
Zero for the life companies.
And then the net the net cash net debt net corporate positions.
Great just wanted to clarify that thank you.
Sure Jeff.
Ladies and gentlemen.
Ladies and gentlemen, I'll now turn the call back over to Mr. Mcinerney for closing comments.
Thank you very much Katie and thanks to all of you for joining the call today I would say, we're proud of and encouraged by our progress to date.
With the business in 2022, despite all the challenges.
Macro economy.
So thanks for joining.
Well on our strategy to create long term care value, reducing the debt buying back shares returning capital to shareholders.
We look forward to updating you in the future as we achieved new milestones and we do expect to have.
An investor update.
Globally in the February March April timeframe on the global care solutions we.
Hope.
By then to have launched.
The business at least some test markets some pilots and we'll have more to definitive to say on the business and what the business model and the financial model in terms of how we will earn profits over time with that so we're excited about that we've got a good team I mentioned.
Tim Pack, who Dr. Tim <unk>, who we hired this year.
In this quarter. He is working with <unk> and we're building a team I think we're up to employee number for someone.
We're making progress.
And I look forward to that but thanks to.
Ryan as you have further questions.
Thank you all for your interest and support of Genworth and we will.
We'll see you next quarter.
With that Katie I'll turn it back over to you.
Thank you ladies and gentlemen, this concludes Genworth Financial's second quarter conference call. Thank you for your participation at this time Nicole blend.
Okay.
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