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Genworth Financial (GNW 0.48%)
Q2 2022 Earnings Call
Aug 02, 2022, 9:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good morning, girls and gents, and welcome to Genworth Financial’s second quarter 2022 earnings convention name. My identify is Katie, and I will probably be your coordinator at this time. [Operator instructions] As a reminder, the convention is being recorded for replay functions. [Operator instructions] I might now like to show the presentation over to Sarah Crews, director of investor relations.
Please go forward.
Sarah Crews — Director of Investor Relations
Thank you, operator. Good morning, and welcome to Genworth’s second quarter 2022 earnings name. Today, you’ll hear from our president and chief government officer, Tom McInerney, adopted by Dan Sheehan, our chief monetary officer and chief funding officer. The slide presentation that accompanies this name is on the market within the investor relations part of the Genworth web site, investor.genworth.com.
Our earnings launch and monetary complement will also be discovered there, and we encourage you to evaluation these supplies. Following our ready remarks, we’ll open the decision up for a question-and-answer interval. In addition to our audio system, Brian Haendiges, president of our U.S. Life Insurance phase, and Jerome Upton, deputy chief monetary officer and controller, may also be accessible to take your questions.
During the decision this morning, we could make varied forward-looking statements. Our precise outcomes could differ materially from such statements. We advise you to learn the cautionary notes concerning forward-looking statements in our earnings launch and associated presentation in addition to the chance elements of our most up-to-date annual report on Form 10-Ok as filed with the SEC. This morning’s dialogue additionally consists of non-GAAP monetary measures that we consider could also be significant to buyers.
In our monetary complement, earnings launch and investor supplies, non-GAAP measures have been reconciled to GAAP the place required in accordance with SEC guidelines. Also, references to statutory outcomes are estimates as a result of timing of the submitting of the statutory statements. And now I’ll flip the decision over to our president and CEO, Tom McInerney.
Tom McInerney — President and Chief Executive Officer
Thank you, Sarah. Good morning, everybody, and thanks for becoming a member of our second quarter earnings name. Genworth delivered sturdy efficiency within the second quarter, making continued progress in opposition to our technique to strengthen our monetary basis and create worth for our shareholders. Our technique is designed to ship long-term development whereas additionally defending shareholder worth in draw back situations, which is very vital in at this time’s troublesome market setting.
This difficult macroeconomic backdrop is pushed by a confluence of competing elements, together with excessive inflation, rising rates of interest, new COVID-19 variants, fairness market volatility, and a decent labor market. The mixture of which has created financial uncertainty. While we should always not examine this era to different market downturns, I consider that the anticipated sharp improve in rates of interest by the Federal Reserve to mitigate historic ranges of inflation will doubtless adversely impression the financial system within the close to to medium time period and proceed to create market volatility. From the place we stand at this time, nonetheless, I consider Genworth is effectively positioned to climate this volatility and financial uncertainty due to sturdy ranges of capital in our companies, a conservatively positioned funding portfolio, a really low debt-to-capital ratio and modest annual debt service obligations.
Our execution in opposition to our strategic priorities reinforces that positioning as we proceed to ship sturdy efficiency from our Enact subsidiary, cut back holding firm debt, and return worth to shareholders within the type of share buybacks. First, let me evaluation our second quarter outcomes at a excessive stage. U.S. GAAP internet earnings was $181 million for the second quarter, whereas adjusted working earnings was $176 million or $0.34 per share.
These outcomes had been led by Enact, which reported $167 million in adjusted working earnings. U.S. Life reported adjusted working earnings of $21 million for the quarter, pushed by LTC insurance coverage and stuck annuities, partially offset by losses in life insurance coverage. Turning to statutory leads to Genworth Life Insurance Company, or GLIC.
We had an estimated pre-tax statutory lack of roughly $60 million. The loss is primarily pushed by fairness market volatility, which required us to regulate reserves and capital in a closed block variable annuity enterprise. Our estimated RBC ratio was 290% as of quarter finish. Our remaining statutory outcomes will probably be accessible with our second quarter statutory filings later this month.
Enact’s continued sturdy working efficiency in a slowing housing market has delivered shareholder returns together with inventory value appreciation and dividends of over 19% for the reason that IPO in September of 2021 by way of Friday’s shut regardless of significant market volatility throughout that point. Since the IPO, Genworth has obtained $182 million in dividends from Enact, together with $19 million within the quarter. Genworth’s shareholders profit from our possession of Enact by way of its quarterly and particular dividends which have enabled us to execute in opposition to our strategic priorities, together with debt discount, share buybacks, and the continued improvement of our long-term development technique by way of world care options. In addition, the market worth of Enact has elevated over the past a number of months and Enact has traded in keeping with comparable friends.
Enact has continued to ship sturdy efficiency because of its differentiated technique, steadiness sheet energy, excellent administration staff, and talent to mitigate threat whereas constructing a high-quality e-book of insurance coverage in-force. Enact’s stand-alone e-book worth, excluding AOCI, has elevated from $3.9 billion on the finish of the second quarter of 2021 to $4.4 billion on the finish of the second quarter of 2022. The enterprise continues to function from a place of energy, writing significant ranges of NIW and benefiting from greater persistency. The firm has had sturdy loss efficiency, which has allowed it to launch reserves, extra reserves within the first and second quarters.
Enact additionally continues to take care of a powerful steadiness sheet and robust regulatory capital ratios and executed a $200 million revolving credit score facility, offering extra monetary flexibility going ahead. Both Enact’s and Genworth’s rankings have steadily improved for the reason that IPO because of Enact’s sturdy working efficiency and capital ranges and the numerous deleveraging actions taken by Genworth. These elements reveal our execution in opposition to our strategic precedence to maximise the worth of Enact to Genworth shareholders. Genworth’s deleveraging has improved our credit score profile, and we proceed to concentrate on decreasing our debt and paying off the remaining 2024 debt by the tip of the third quarter, which might deliver Genworth’s father or mother debt to $900 million.
This would additionally deliver our debt-to-capital ratio right down to one of many lowest within the life insurance coverage business which positions us effectively to climate the market uncertainty within the subsequent 12 to 18 months. In the second quarter, we repurchased roughly $48 million of our 2024 debt leaving roughly $152 million in principal excellent. Given our holding firm money place, the quarterly dividend from Enact and the expectation of receiving a major particular dividend from Enact later this yr, we plan to retire the rest of the 2024 debt within the third quarter of 2022. On July 21, we obtained one other rankings improve from Moody’s, our fourth improve from the ranking company since September, which displays our a lot improved monetary and leverage place.
Upon the retirement of our 2024 debt, our credit score profile will probably be enhanced even additional. And we consider we will probably be effectively positioned for ranking businesses to proceed to mirror these enhancements. As we introduced final quarter, given our constructive free money stream outlook, steadiness sheet enhancements and continued sturdy working efficiency, our board approved a share repurchase program of as much as $350 million. In the second quarter, we repurchased $15 million price of excellent shares.
And subsequent to quarter finish, we’ve accomplished an incremental $15 million. In whole, we’ve repurchased over 7.9 million shares at a median value of roughly $3.80 per share. We stay opportunistic in the case of shopping for again shares and consider it’s a very efficient instrument to return worth to shareholders within the close to time period. As beforehand talked about, we anticipate nearly all of our repurchase exercise to happen after we retire the remaining 2024 debt within the third quarter.
Beyond repurchases, as we proceed to construct important extra money, the board intends to think about paying a quarterly dividend to Genworth shareholders in 2023. With respect to our potential longer-term money stream, I needed to offer an replace concerning our settlement with AXA and potential recoveries in that case. Santander made a strike out utility within the U.Ok. courtroom, which is analogous to a movement dismissed in U.S.
courts. The courtroom lately dominated on that utility, principally in AXA’s favor. This is a superb improvement, permitting the case to maneuver ahead. Based on the courtroom schedule and the period of time it has taken to get up to now, we consider {that a} trial on this case is just not doubtless earlier than the primary quarter of 2024.
We will proceed to speak with AXA in search of to maneuver the case forward as shortly as doable. With respect to the potential of recoveries within the AXA matter, as we have mentioned earlier than, it’s untimely to foretell the quantity of potential recoveries. What I can say is that with curiosity, AXA is presently in search of an extra of $800 million from Santander primarily based on the present grievance, and that quantity is prone to be up to date sooner or later. If AXA prevails in its claims, Genworth has important upside in recouping a good portion of the roughly $830 million it has paid in its settlement with AXA.
Longer time period, we’re targeted on creating worth by way of the event of our long run care development technique to grow to be a complete supplier of long run care companies and options. We proceed to take a consumer-led strategy to this new enterprise and are primarily exploring alternatives in long run care companies and care navigation. As we search to shortly shift from technique improvement to testing and implementation, we made a essential rent within the quarter. Dr.
Tim Peck joined Global Care Solutions to guide our aged care companies enterprise within the U.S. Tim is a examined entrepreneur within the elder care area and a Harvard-trained emergency drugs doctor. He based two technology-enabled care companies companies, Call9, and Curve Health. Call9 was a medical expertise start-up dedicated to redesigning healthcare for seniors by decreasing pointless hospitalizations by way of human heart design and scale.
From there, Tim leverages learnings from Call9 to construct his subsequent enterprise, Curve Health, which is a telemedicine and information high-growth start-up connecting physicians to power care sufferers in long-term care and post-acute settings, together with in nursing houses, assisted dwelling and residential care. I’m happy to welcome Tim who has hit the bottom working with the Global Care Solutions staff as he focuses on implementing our technique, which can initially be targeted on care service navigation in choose take a look at markets subsequent yr. Shifting gears, I need to briefly contact on our precedence to additional stabilize our legacy long run care portfolio by way of the continued execution of our multiyear price motion plan or MYRAP. We have achieved $153 million in annual premium price improve approvals yr thus far by way of the second quarter, bringing our cumulative progress in opposition to the MYRAP program to $20.7 billion on a internet current worth foundation since 2012.
In closing, I’m more than happy with our progress in the course of the first half of the yr and consider Genworth is effectively positioned to climate no matter comes at us within the second half. Genworth has a really sturdy steadiness sheet, expectations of continued sturdy money stream from Enact and improved rankings. Further, I sit up for persevering with to develop our long-term development technique in long run care as we search to redefine the way forward for long run care. With that, I’ll flip the decision over to Dan to offer extra particulars on our second quarter outcomes, our monetary place and our capital allocation technique going ahead.
Dan Sheehan — Chief Financial Officer and Chief Investment Officer
Thank you, Tom, and good morning, everybody. In the second quarter, we generated sturdy working outcomes and continued to reinforce our monetary place amid a difficult market backdrop. We’re particularly happy with the sturdy earnings and money stream delivered by Enact, the return of capital to shareholders and the continued deleveraging of our steadiness sheet. As Tom talked about, within the second quarter, we repurchased $48 million of our 2024 debt maturity, leaving a steadiness of $152 million which we plan to name later this month, enabling us to have it totally retired by the tip of the third quarter.
At that point, we could have $900 million of debt excellent, attaining our strategic precedence of lower than $1 billion of debt. Moody’s Investors Service lately acknowledged our enhanced monetary energy with a two-notch improve to BA2, reflecting our improved liquidity place and monetary flexibility. We’re happy that our rankings proceed to mirror the substantial progress we have made, which in flip have had favorable impacts to Genworth and Enact. We will proceed to work with the ranking businesses to make sure their views mirror our enhanced credit score profile by way of rankings enhancements.
In phrases of returning capital to shareholders, we have repurchased $30 million of Genworth inventory thus far, representing roughly eight million shares at a median value of roughly $3.80 per share. There’s roughly $320 million remaining on our authorization. Once we attain our debt goal and start to build up extra money, we’ll be ready to extend the tempo of our share repurchase program. Now I’ll flip to an in depth dialogue of the second quarter outcomes, starting on Slide 5.
Second quarter internet earnings was $181 million and adjusted working earnings was $176 million or $0.34 per diluted share. In the prior quarter, we had internet earnings of $149 million and adjusted working earnings of $131 million or $0.25 per share. Results within the present quarter had been greater, reflecting adjusted working earnings of $167 million from Enact, $21 million from our U.S. Life Insurance phase and $2 million from our Runoff phase, partially offset by an adjusted working lack of $14 million from company and different actions.
Interest charges continued to rise within the present quarter. In the brief time period, greater charges will trigger slowing bond name and industrial mortgage mortgage prepayment volumes, however we’ll profit from our inflation-protected and floating price securities. Portfolio yields may also profit as we’re in a position to reinvest new cash at greater charges. In the second quarter, the acquisition yields for long-term care had been the very best they have been in three years.
For Enact, rising charges will assist a extra significant yield impression as a result of shorter period of the portfolio. Given that Enact hosted its earnings name earlier this morning and offered an intensive replace, I’ll concentrate on the important thing highlights. As proven on Slide 5, Enact’s adjusted working earnings to Genworth was $167 million, a rise of 24% from the primary quarter. Turning to Slide 6.
Insurance in-force elevated 9% yr overyear to $238 billion, pushed by sturdy new insurance coverage written and better persistency given rising mortgage charges, which principally lowered refinancing exercise. Moving to Slide 7. Current quarter outcomes mirrored a positive $96 million pre-tax reserve launch, which drove a loss ratio of adverse 26%. The reserve launch was pushed predominantly by elevated remedy exercise associated to COVID-19 delinquencies.
The estimated PMIER sufficiency ratio of 166% or roughly $2 billion above printed necessities remained sturdy and was down barely versus the prior quarter, primarily from Enact’s working firm distribution to its holding firm. We’re more than happy with Enact’s continued sturdy efficiency within the second quarter, which additionally marked their first quarterly dividend cost of $0.14 per share that generated roughly $19 million to Genworth. The quarterly dividend, together with the potential for added return of capital from Enact later this yr, will proceed to strengthen our holding firm steadiness sheet. I’ll now cowl our U.S.
Life Insurance phase outcomes beginning on Slide 8. Segment reported adjusted working earnings of $21 million, reflecting working earnings of $34 million from LTC and $21 million from fastened annuities, partially offset by an working lack of $34 million in life. In our LTC enterprise, adjusted working earnings was $34 million, in comparison with $59 million within the prior quarter and $98 million within the prior yr. Current quarter outcomes mirrored decrease terminations in each our declare and wholesome life populations as mortality declined.
In the primary quarter, we usually see greater seasonal mortality, it is decreased within the second quarter. In addition, the elevated mortality we have seen for the reason that second quarter of 2020 with the onset of the pandemic was decrease within the present quarter, which is according to nationwide COVID-19 mortality tendencies. The sequential lower in energetic declare mortality depend may be seen on Slide 9. During the quarter, we lowered our beforehand established COVID-19 mortality reserve by $15 million pre-tax, bringing the remaining steadiness to $110 million.
We did see a better stage of pending new claims within the first half of the yr in comparison with 2021, a sign that new declare incidents whereas nonetheless under 2019 ranges, as proven on Slide 9, might develop and pattern again to its historic ranges. New declare severity continued to extend within the present quarter, primarily reflecting the anticipated growing older of our newer blocks of enterprise, which are likely to have greater inflation protection and every day profit quantities than the older blocks. In addition, in the course of the pandemic, a bigger share of our claimants sought residence care as a substitute of facility-based care, and in latest quarters, we have seen that pattern reverse. We proceed to make important progress in addressing threat in our legacy LTC portfolio by way of the multiyear price motion plan, as you’ll be able to see on Slides 10 and 11.
During the primary half of 2022, we obtained LTC in-force price motion approvals impacting $487 million of premiums with a weighted common approval price of 31%. The ensuing $153 million in annual premium price will increase brings the entire internet current worth from achieved LTC price actions to $20.7 billion since 2012, up roughly $1.1 billion since yr finish. Reserve releases ensuing from profit reductions decreased from the prior quarter and prior yr because the implementation of the Choice 1 authorized settlement was materially accomplished within the first quarter. The pending settlement associated to PCS I and II insurance policies, which mixed, symbolize roughly 15% of our LTC block, grew to become remaining on July 29.
We anticipate to start implementation of the settlement within the third quarter, however given the 90-day policyholder election window, we might anticipate monetary impacts starting within the fourth quarter. Because the mailings happen within the policyholder anniversary date, nearly all of the impacts will probably be in 2023. We’ve additionally obtained preliminary approval from the courtroom on the pending settlement associated to our Choice 2 insurance policies which represents roughly 35% of our LTC block. The remaining courtroom listening to to approve that settlement is scheduled for November.
Should we obtain remaining approval and haven’t any appeals, we might anticipate to start implementing the settlement 2023. The two new settlement agreements are much like the Choice 1 settlement and relying on policyholder election charges and the varieties of elections chosen, we might anticipate general favorable impacts. Turning to Slide 12 and our Life Insurance product. We reported an adjusted working lack of $34 million in comparison with working losses of $79 million within the prior quarter and $40 million within the prior yr.
The key driver of the advance seen within the present quarter was decrease mortality. COVID-19 claims accounted for under $3 million of the loss, which was considerably decrease than the prior quarter. In the present quarter, whole time period deferred acquisition price, or DAC, amortization was $22 million after tax, which was greater than the prior quarter and prior yr, primarily from a rise in lapses as our 20-year time period block issued in 2002 skilled greater lapses because it exited the extent premium interval. We recorded a $12 million after-tax cost for DAC recoverability testing in our common life insurance coverage merchandise associated to continued block runoff and mortality expertise in comparison with $19 million within the prior quarter and $13 million within the prior yr.
Regarding fastened annuities, adjusted working earnings was $21 million in comparison with $16 million within the prior quarter and $13 million within the prior yr, reflecting greater mortality in our single premium instant annuity product and decrease DAC amortization within the fastened index annuity product as a result of rise in rates of interest. In the Runoff phase, our adjusted working earnings was $2 million for the present quarter in comparison with $9 million within the prior quarter and $15 million within the prior yr. Our Runoff phase is made up primarily of variable annuity and variable life insurance coverage merchandise with $3.9 billion in property underneath administration and is 22% smaller than on the finish of 2020. Current quarter outcomes had been adversely impacted by the unfavorable fairness market efficiency.
As indicated on Slide 14, we’re estimating the consolidated risk-based capital ratio for Genworth Life Insurance Company, or GLIC, to be 290% at June 30, a slight decline from 296% at March 31 and in keeping with 2021 year-end outcomes. The lower displays the impression of unfavorable fairness market efficiency on our variable annuity merchandise, which is extra pronounced than our statutory outcomes and GAAP adjusted working earnings. You will see on Slide 14 that the statutory steadiness sheet of U.S. Life firms has strengthened materially over the previous few years, with important enhancements within the capital and surplus quantities and unassigned surplus.
As a reminder, the life insurance coverage business will probably be implementing a brand new accounting commonplace in January 2023, the long-duration focused enhancements, or LDTI, which would require us to symbolize our GAAP financials from January 2021 ahead. This change impacts our U.S. Life Insurance and Runoff segments however not the Enact phase or Corporate and Other, and it’ll not impression our financial worth, money flows, statutory accounting or how we handle the enterprise. We are on observe to implement this main accounting change.
And we’ll present an replace on our progress and anticipated transition impacts later this yr. Turning to the holding firm on Slide 15. We ended the quarter with $228 million of money and liquid property. Key money exercise included an influx of $58 million from internet intercompany tax funds and the $19 million dividend from Enact in addition to a $49 million outflow, reflecting debt discount.
As I famous earlier, we anticipate to realize our debt goal of $900 million within the third quarter. Once we accomplish that milestone, our subsequent debt maturity is just not till 2034. In addition, the continuing quarterly dividends from Enact will greater than cowl our debt service prices of roughly $50 million per yr. We additionally anticipate to obtain a further return of capital from Enact within the fourth quarter of 2022 primarily based on Enact’s expectation to return roughly $250 million to its shareholders in 2022 and adjusting for our majority possession of 81.6%, we might anticipate to obtain roughly $150 million of extra return of capital to Genworth on prime of the quarterly dividend funds from Enact.
Further, we proceed to anticipate the holding firm will obtain roughly $200 million to $250 million from internet intercompany tax funds this yr. This expectation is topic to the taxable earnings generated by our subsidiary companies and given the potential for macroeconomic headwinds, it might change. For the primary half of the yr, the holding firm has obtained $122 million in internet intercompany tax funds. We anticipate our holding firm tax attributes to be exhausted in 2023.
Our capital priorities, which information our capital allocation selections, stay constant. Upon reaching our debt goal on the finish of the third quarter, we’ll deploy our extra money towards our development initiatives and shareholder return initiatives. Our first precedence will probably be investments in development, specifically our Global Care Solutions enterprise, the place our preliminary focus will probably be on long run care recommendation and repair choices, that are much less capital-intensive than insurance coverage choices. We may also preserve our dedication to returning capital to shareholders by way of share repurchases.
We proceed to consider our inventory value is buying and selling under intrinsic worth and that repurchases are an efficient solution to capitalize on that disconnect whereas returning worth to Genworth shareholders. Before I shut, I needed to notice that regardless of the $2 billion unrealized loss steadiness in our funding portfolio due to the numerous improve in rates of interest within the second quarter, our credit score profile stays very sturdy with rankings upgrades within the basic account meaningfully outpacing downgrades. The funding portfolio stays effectively positioned to handle by way of the present financial uncertainty. In reality, we proactively managed our holdings forward of Russia’s invasion of Ukraine and haven’t any remaining direct publicity to both nation.
And after all, we’re investing new cash on the most engaging yields in a few years. In closing, I’m happy with our outcomes this quarter and with the continued progress towards our strategic targets. The excellent efficiency from Enact continues to offer a gentle money stream stream, which can enable us to fulfill our debt goal within the third quarter and generate extra money stream shifting ahead. We proceed to make progress closing the hole within the legacy LTC e-book, and the Life Company steadiness sheet stays sturdy within the face of financial challenges.
While there continues to be uncertainty across the present financial setting, I’m optimistic that Genworth is effectively positioned to proceed to carry out and execute on our technique. With that, we’ll open it up for questions.
Questions & Answers:
Operator
Thank you. [Operator instructions] We’ll take a query from Ryan Krueger with KBW.
Ryan Krueger — Keefe, Bruyette and Woods — Analyst
Hi. Good morning. My first query is on the intercompany tax attribute. Was your remark that the tax attributes will probably be exhausted on the finish of this yr and you wouldn’t anticipate an extra profit in 2023? Or would you anticipate some additional profit in 2023 earlier than they’re exhausted?
Tom McInerney — President and Chief Executive Officer
Thanks for the query, and we’ll give that one to Dan.
Dan Sheehan — Chief Financial Officer and Chief Investment Officer
Thanks, Tom. I assume the way in which I might say it at this time is that there is nonetheless plenty of uncertainty within the financial setting. We will use nearly all of the remaining tax attributes in 2022 and in the end exhaust them sooner or later in 2023. And that may very well be midyear, it may very well be a little bit earlier or a little bit later simply relying on the subsidiary outcomes.
Ryan Krueger — Keefe, Bruyette and Woods — Analyst
Got it. And then on the AXA-Santander lawsuit, are you able to simply remind us how the precise sharing of the restoration works? Is there a particular proportion of a restoration that you’d obtain? Or are you able to give any extra shade there?
Tom McInerney — President and Chief Executive Officer
I believe, Ryan, I actually cannot add a lot to that aside from what I mentioned in my remarks. To the extent that AXA prevails within the litigation provided that we have reimbursed AXA for a major quantity of losses that they had, we might anticipate important recoveries. But precisely how that may play out, it is to be decided as we undergo the litigation course of or AXA and Santander goes by way of the litigation course of.
Ryan Krueger — Keefe, Bruyette and Woods — Analyst
Got it. And then final query was on Global Care Solutions. I assume are you able to give us any sense like the way you’re excited about the potential monetary impression of this and over what time-frame it’s possible you’ll begin to generate earnings from this new enterprise?
Tom McInerney — President and Chief Executive Officer
Ryan, good query. So I might say, initially, it is a capital-light enterprise. We do not want rankings. We need not put in capital to cowl risk-bearing like we’ve with the legacy enterprise.
And so I believe it should be primarily based on a digital expertise platform. And what we’re principally going to be doing on this first section is we’ve a nurse community, about 35,000 nurses. So whether or not it is a Genworth policyholder or somebody with no current relationship with Genworth, we’ll assess the incapacity really helpful care plan. And then we’re going to negotiate and develop a most popular supplier community primarily based on high quality and reductions.
And so we might then anticipate to, as soon as we give you a care plan with our new consumer, refer them into the popular community. They’ll get a reduction and the income revenue margins for us will probably be primarily based on — the consumer pays Genworth a payment for assessing the declare, arising with a care plan and getting them positioned in a high-quality supplier wherever they’re situated. So the revenue margins will come from the consumer with an all-in. The consumer pays lower than they might in the event that they did this all on their very own.
So we do all of the work for them, get them positioned and we earn a payment on that. It’s exhausting to foretell. As I mentioned, it is not plenty of capital aside from to cowl working capital prices, the price of the staff that we’ll be hiring, IT engineers to develop the software program. So these would be the bills.
And then we do anticipate the — it is about 50 million of the newborn boomers will in the end want care. And they will want recommendation and companies. It’s a really fragmented market at this time. There are some fintech firms which can be doing comparable issues to us, however most of them are one-stop outlets, and we expect we are able to present the entire service for an all-in price to the consumer lower than they might do on their very own.
So sure, as we develop the enterprise, there’s plenty of leverage, and it needs to be a reasonably excessive return enterprise provided that it does not require plenty of capital.
Ryan Krueger — Keefe, Bruyette and Woods — Analyst
Thank you.
Operator
We’ll take our subsequent query from Geoffrey Dunn with Dowling & Partners.
Geoffrey Dunn — Dowling and Partners — Analyst
Thanks. Good morning. I simply needed to revisit the prospect for share repurchase and your evaluation of intrinsic worth. When you are trying on the intrinsic worth of GNW, is that the money flows and steadiness sheet, excluding the Life platform? Are you factoring any worth to the legacy Life platform that you simply at present have?
Tom McInerney — President and Chief Executive Officer
Yes. I believe what we have been saying, Geoff, for a few years is once we have a look at intrinsic worth, we have a look at the worth of Enact, and we assume the intrinsic worth over the housing cycle. And so usually, our view is Enact within the MI has traded at 1x e-book or higher. So that is how we worth Enact.
And then for now, we’re placing 0 worth in for the Life Companies. I do assume we might discover down the street for legacy enterprise, there’s life and annuity enterprise clearly has some capital related to that, that has some worth. And then clearly, we’re not assuming any worth but for our new enterprise, however we expect that in the end it might have worth. And so it is actually the intrinsic worth of Enact as we see it, as I described, zero for the Life Companies after which the online money, internet debt, and internet company place.
Geoffrey Dunn — Dowling and Partners — Analyst
Right. Just need to make clear that. Thank you.
Operator
Ladies and gents, I’ll now flip the decision again over to Mr. McInerney for closing feedback.
Tom McInerney — President and Chief Executive Officer
Thank you very a lot, Katie, and due to all of you for becoming a member of the decision at this time. I might say we’re proud and inspired by our progress thus far with the enterprise in 2022 regardless of all of the challenges within the macro financial system. We additionally assume we’re doing effectively on our technique to create long run care worth, decreasing the debt, shopping for again shares, returning capital to shareholders. We sit up for updating you sooner or later as we obtain new milestones.
And we do anticipate to have an investor replace in all probability within the February, March, April timeframe on the Global Care Solutions. We would hope by then to have launched the enterprise in a minimum of some take a look at markets, some pilots. And we’ll have extra definitive to say on the enterprise and what the enterprise mannequin and the monetary mannequin by way of how we’ll earn earnings over time with that. So we’re enthusiastic about that.
We’ve acquired staff. I discussed Tim Peck who — Dr. Tim Peck who we employed this yr, on this quarter. And he is working with Joost Heideman and we’re constructing a staff.
I believe we’re as much as worker quantity 4, so we’re making progress and sit up for that. But because of Ryan and Geoff for his or her questions. And thanks all to your curiosity and assist of Genworth, and we’ll see you subsequent quarter. So with that, Katie, I’ll flip it again over to you.
Operator
[Operator signoff]
Duration: 0 minutes
Call members:
Sarah Crews — Director of Investor Relations
Tom McInerney — President and Chief Executive Officer
Dan Sheehan — Chief Financial Officer and Chief Investment Officer
Ryan Krueger — Keefe, Bruyette and Woods — Analyst
Geoffrey Dunn — Dowling and Partners — Analyst
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