UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
July 29, 2020
Date of Report
(Date of earliest event reported)

 

GENWORTH FINANCIAL, INC.
(Exact name of registrant as specified in its charter)

 
					
Delaware	 	001-32195	 	80-0873306	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(I.R.S. Employer
Identification No.)	

6620 West Broad Street, Richmond, VA	 	23230	
(Address of principal executive offices)	 	(Zip Code)	
(804) 281-6000
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
 
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Securities registered pursuant to Section 12(b) of the Act:

Title of each class	 	Trading
Symbol	 	Name of each exchange
on which registered	
Class A Common Stock, par value $.001 per share	 	GNW	 	New York Stock Exchange	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Item 2.02	Results of Operations and Financial Condition.	
On July 29, 2020, Genworth Financial, Inc. (the “Company”) issued (1) a press release announcing its financial results for the quarter ended June 30, 2020, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (2) a financial supplement for the quarter ended June 30, 2020, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information contained in this Current Report on Form 8-K (including the exhibits) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the company under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
 
Item 9.01	Financial Statements and Exhibits.	
The following materials are furnished as exhibits to this Current Report on Form 8-K:

Exhibit
Number	  		Description of Exhibit	
			
99.1	  	Press Release dated July 29, 2020		
			
99.2	  	Financial Supplement for the quarter ended June 30, 2020		
			
104	  	Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document)		

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	 		 	GENWORTH FINANCIAL, INC.	
				
Date: July 29, 2020	 		 	By:	 	/s/ Matthew D. Farney	
	 		 		 	Matthew D. Farney	
	 		 		 	Vice President and Controller	
	 		 		 	(Principal Accounting Officer)	

EXHIBIT 99.1

Genworth Financial Announces Second Quarter 2020 Results
Second Quarter Net Loss $441 Million And Adjusted Operating Loss Of $21 Million
 
 	•	 	Merger Agreement With China Oceanwide Holdings Group Co., Ltd (Oceanwide) Extended To Not Later Than September 30, 2020; Interim Milestone By August 31, 2020	
 
 	•	 	Reached Agreement With AXA S.A. (AXA) On July 20, 2020 To Settle Liability For Payment Protection Insurance Mis-Selling, Which Included A Payment Of £100MM Subsequent To Quarter-End	
 
 	•	 	U.S. Mortgage Insurance (MI) Benefited From A Robust Mortgage Origination Market With $28.4 Billion In New Insurance Written (NIW)	
 
 	•	 	U.S. MI Adjusted Operating Loss Of $3 Million Primarily Driven By Higher New Delinquencies Attributable To The COVID-19 Pandemic	
 
 	•	 	U.S. MI’s PMIERs1 Sufficiency Ratio Estimated At 143 Percent, $1,275 Million Above Requirements	
 
 	-	Reinsurance Transaction On 2009-2019 Blocks Providing Approximately $180 Million PMIERs Credit	
 
 	•	 	U.S. Life Insurance Segment Adjusted Operating Loss Of $5 Million Driven By Life Insurance Performance; LTC2 Benefited From Higher Mortality In The Quarter Indicative Of COVID-19	
 
 	•	 	Holding Company Cash And Liquid Assets Of $554 Million, Including $59 Million Restricted, With Repurchases Of $52 Million Principal Amount Of 2021 Senior Notes In The Quarter	
Richmond, VA (July 29, 2020) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended June 30, 2020. The company reported a net loss3 of $441 million, or $0.86 per diluted share, in the second quarter of 2020, compared with net income of $168 million, or $0.33 per diluted share, in the second quarter of 2019. The company reported an adjusted operating loss4 of $21 million, or $0.04 per diluted share, in the second quarter of 2020, compared with adjusted operating income of $178 million, or $0.35 per diluted share, in the second quarter of 2019.
In July 2020, the company reached a settlement agreement with AXA regarding a dispute over payment protection insurance claims underwritten by the company’s former lifestyle protection insurance business that was acquired by AXA in 2015. As a result, Genworth recorded an after-tax loss of $516 million for the settlement as part of discontinued operations in the current quarter.

1 	Private Mortgage Insurer Eligibility Requirements	
2 	Long term care insurance	
3 	Unless otherwise stated, all references in this press release to net income (loss), net income (loss) per share, adjusted operating income (loss), adjusted operating income (loss) per share and book value per share should be read as net income (loss) available to Genworth’s common stockholders, net income (loss) available to Genworth’s common stockholders per diluted share, adjusted operating income (loss) available to Genworth’s common stockholders, adjusted operating income (loss) available to Genworth’s common stockholders per diluted share and book value available to Genworth’s common stockholders per share, respectively.	
4 	This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (Non-GAAP). See the Use of Non-GAAP Measures section of this press release for additional information.	
 
1

COVID-19 Update
The COVID-19 pandemic continued to impact Genworth in the current quarter. Genworth’s priority remains servicing its customers while maintaining the health and safety of all employees and their families. The company successfully transitioned to a fully remote work environment in March, and employees have continued to serve customers and policyholders effectively with minimal disruption. As cases have continued to surge in some regions of the U.S. and given the organization’s seamless transition to remote operations, Genworth has decided to extend remote working conditions until at least January 1, 2021. Genworth is constantly monitoring and evaluating the impact of COVID-19 and will continue to act in the best interests of its investors and employees while effectively addressing customer needs.
The COVID-19 pandemic and related macroeconomic volatility negatively impacted the company’s financial results in the quarter primarily as a result of higher unemployment, increased home borrower participation in forbearance programs and increased new delinquencies which were partly mitigated by the effects of government stimulus. These effects were partially offset by benefits from sequential equity market improvement and higher mortality in the LTC business.
Genworth is closely monitoring macroeconomic indicators and is conducting extensive scenario planning to tailor its actions to mitigate adverse effects of the pandemic. The economic impact to U.S. MI for the remainder of 2020 is uncertain and will depend on the speed of recovery and the amount and duration of government stimulus reaching borrowers. Mortgage originations remained strong during the current quarter driven by the low interest rate environment which resulted in higher refinance origination volumes. New delinquencies increased significantly in the current quarter, peaking in the month of May consistent with forbearance trends seen earlier in the quarter. Although uncertainty remains high, as economic activity resumes and forbearance options provide borrowers with financial stability, higher new delinquencies may be mitigated by higher cure rates in the second half of 2020. In order to preserve capital in the company’s mortgage insurance subsidiaries during this period of uncertainty, Genworth does not expect to receive further dividends from its mortgage insurance businesses in 2020. Additionally, in response to COVID-19, the U.S. MI business is subject to the temporary PMIERs requirement to obtain pre-approval from the government-sponsored enterprises (GSEs) for certain capital related transactions, including dividends. The amount and timing of dividends in 2021 will depend on a variety of factors, including the timing of economic recovery from COVID-19.
In the U.S. life insurance companies, interest rate and equity market movements are expected to continue to impact U.S. GAAP and statutory results. Results may also continue to be impacted by higher mortality,
 
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dependent on the length and severity of the COVID-19 pandemic. The company continues to manage the U.S. life insurance businesses on a standalone basis with no plans to infuse or extract capital other than as committed in connection with the completion of the Oceanwide transaction.
“Genworth’s leadership team and employees have shown incredible resilience and dedication to our customers, policyholders and each other during this difficult period,” said Tom McInerney, President and CEO of Genworth. “While the severity and duration of the pandemic remains to be seen, we continue to plan for various scenarios to ensure we are taking the right steps to best position our businesses to navigate the impacts of the pandemic.”
Strategic Update
On June 30, Genworth and Oceanwide announced they agreed to extend the merger agreement deadline to not later than September 30, 2020, which provides Oceanwide with additional time to secure funding for the transaction and receive clearance for currency conversion and transfer of funds from China’s State Administration of Foreign Exchange (SAFE). Oceanwide has indicated that the financing has been delayed due to the COVID-19 pandemic and uncertain macroeconomic conditions.
“Although the closing process has been further delayed by the COVID-19 pandemic, the Oceanwide transaction continues to represent the best strategic option for Genworth’s shareholders, and benefits policyholders, customers and employees,” said Tom McInerney, president and CEO of Genworth. “The fifteenth waiver and extension of the merger agreement provides both parties with the flexibility needed to navigate this uncertain environment. In order to address our near-term financial obligations including the recently announced AXA settlement, we are moving forward with steps to enhance our liquidity while working diligently towards closing the transaction.”
LU Zhiqiang, chairman of Oceanwide, continued. “The acquisition of Genworth is a strategically important transaction and a priority for China Oceanwide. The financing progress has been delayed given the significant economic impacts of lock-downs associated with the global pandemic, but we remain committed to securing financing for the transaction in order to close the transaction as soon as possible.”
As part of the fifteenth waiver and extension, Genworth and Oceanwide also agreed to additional interim milestones designed to provide more clarity to Genworth on Oceanwide’s progress towards financing the transaction. Specifically, the fifteenth waiver includes provisions for Oceanwide to submit satisfactory evidence to Genworth by August 31, 2020 confirming that:
 
 	•	 	Approximately $1.0 billion is available to Oceanwide from sources in Mainland China to fund the acquisition of Genworth; and	
 
3

 	•	 	Hony Capital and/or other acceptable third parties have committed to provide Oceanwide $1.0 billion or more from sources outside of China to fund the transaction.	
Given the delay in the closing process, Genworth is moving forward with plans to address its near-term liabilities and financial obligations, which include the recently announced settlement agreement with AXA and approximately $1.0 billion of debt maturing in 2021. Genworth expects these steps to include a debt financing in the near term and taking the necessary steps to launch a 19.9 percent initial public offering of its U.S. Mortgage Insurance business, subject to market conditions, in the event the China Oceanwide transaction is terminated.
As previously announced, Genworth paid AXA £100 million, or $125 million, on July 21, 2020 (which amount is in addition to a £100 million interim cash payment Genworth made to AXA in January 2020 and expensed in the fourth quarter of 2019). In addition, Genworth issued a secured promissory note to AXA, pursuant to which Genworth will make deferred cash payments totaling approximately £317 million in two installments: the first on June 30, 2022 and the second on September 30, 2022, subject to certain prepayment obligations. Genworth has also agreed to pay a significant portion of mis-selling losses incurred by AXA from the ongoing processing of previously submitted mis-selling complaints, which losses will be added to and paid with the second installment on September 30, 2022.
Under the terms of the settlement and the sale and purchase agreement, if AXA recovers amounts from third parties related to the mis-selling losses, including from the distributor responsible for the sale of the policies, Genworth has certain rights to share in those recoveries to recoup payments for the underlying mis-selling losses.
 
4

Financial Performance
Consolidated Net Income (Loss) & Adjusted Operating Income (Loss)

 	  	Three months ended June 30	 	  	 	 		
 	  	2020	 	 	2019	 	  	 	 		
	(Amounts in millions, except per share)	  	Total	 	 	Per
diluted
share	 	 	Total	 	  	Per
diluted
share	 	  	Total
% change	 	
Net income (loss) available to Genworth’s common stockholders	  	$	(441	) 	 	$	(0.86	) 	 	$	168	 	  	$	0.33	 	  	  	NM	5 		
Adjusted operating income (loss)	  	$	(21	) 	 	$	(0.04	) 	 	$	178	 	  	$	0.35	 	  	 	(112	)% 		
Weighted-average diluted shares	  	 	512.5	 	 				 	 	508.7	 	  				  					
				
 	  	As of June 30	 	  	 	 		
 	  	2020	 	 	2019	 	  	 	 		
Book value per share	  				 	$	28.96	 	 				  	$	27.32	 	  					
Book value per share, excluding accumulated other comprehensive income (loss)	  				 	$	20.17	 	 				  	$	21.34	 	  					
The net loss in the quarter included investment gains of $101 million, net of taxes and other adjustments. The investment gains were driven by sales of U.S. Treasury bonds and mark-to-market gains on limited partnerships and equity securities. Net income in the second quarter of 2019 included $35 million from investment losses, net of taxes and other adjustments.
Net investment income was $786 million in the quarter, compared to $793 million in the prior quarter and $816 million in the prior year. Net investment income was lower than the prior quarter as a result of lower income from bond calls and prepayments and an unfavorable inflation impact on U.S. Government Treasury Inflation Protected Securities (TIPS) in the quarter compared to favorable inflation in the prior quarter, partially offset by higher income from limited partnerships. Net investment income was lower than the prior year due to unfavorable inflation impact of TIPS in the quarter compared to favorable inflation in the prior year. The reported yield and the core yield4 for the quarter were 4.65 percent and 4.59 percent, respectively, compared to 4.71 percent and 4.57 percent, respectively, in the prior quarter.
Genworth’s effective tax rate on income from continuing operations for the quarter was approximately 31.1 percent. The effective tax rate was increased from the tax effect of forward starting swap gains settled prior to the change in the corporate tax rate under the 2017 Tax Cuts and Jobs Act, which continue to be tax effected at 35 percent as they are amortized into net investment income, as well as by the higher tax expense related to foreign operations and nondeductible goodwill. The effective tax rate on the loss from discontinued operations for the quarter was 21 percent.

5 	The company defines “NM” as not meaningful for increases or decreases greater than 200 percent.	
 
5

Adjusted operating income (loss) results by business line are summarized in the table below:

Adjusted Operating Income (Loss)	
(Amounts in millions)	  	Q2 20	 	  	Q1 20	 	  	Q2 19	 	
U.S. Mortgage Insurance	  	$	(3	) 	  	$	148	 	  	$	147	 		
Australia Mortgage Insurance	  	 	1	 	  	 	9	 	  	 	13	 		
U.S. Life Insurance	  	 	(5	) 	  	 	(70	) 	  	 	66	 		
Runoff	  	 	24	 	  	 	(13	) 	  	 	9	 		
Corporate and Other	  	 	(38	) 	  	 	(41	) 	  	 	(57	) 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Total Adjusted Operating Income (Loss)	  	$	(21	) 	  	$	33	 	  	$	178	 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Adjusted operating income (loss) represents income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and other adjustments, net of taxes. A reconciliation of net income (loss) to adjusted operating income (loss) is included at the end of this press release.
Unless specifically noted in the discussion of results for the Australia MI business, references to percentage changes exclude the impact of translating foreign denominated activity into U.S. dollars (foreign exchange). Percentage changes that include the impact of foreign exchange are found in a table at the end of this press release.
U.S. Mortgage Insurance

Operating Metrics	
(Dollar amounts in millions)	  	Q2 20	 	 	Q1 20	 	 	Q2 19	 	
Adjusted operating income (loss)	  	$	(3	) 	 	$	148	 	 	$	147	 		
New insurance written	  				 				 					
Primary Flow	  	$	28,400	 	 	$	17,900	 	 	$	15,800	 		
Loss ratio	  	 	94	% 	 	 	8	% 	 	 	—  	% 		
U.S. MI reported an adjusted operating loss of $3 million, compared with adjusted operating income of $148 million in the prior quarter and $147 million in the prior year. U.S. MI’s flow insurance in force increased 16 percent versus the prior year from strong NIW, driving continued growth in earned premiums. Flow NIW increased 59 percent from the prior quarter due to higher purchase and refinance originations and was up 80 percent versus the prior year primarily driven by higher refinance originations, a larger private mortgage insurance market and higher estimated market share. Flow insurance in force growth from NIW was partially offset by low persistency, which was 60 percent for the quarter, down from 76 percent in the prior quarter and 82 percent in the prior year. The growth in earned premiums versus the prior quarter and prior year was also driven by increased single premium policy cancellations from lower persistency and higher mortgage refinancing activity, partially offset by lower average premium rates and higher ceded premiums associated with the company’s credit risk transfer program.
 
6

U.S. MI losses of $228 million and loss ratio of 94 percent were up from both the prior year and sequentially driven by an increase in new delinquencies from the COVID-19 pandemic. Total flow delinquencies increased from 15,246 to 53,372 sequentially driven by 48,249 new delinquencies in the quarter, of which 87 percent are subject to a forbearance plan and may cure at an elevated rate. New delinquencies contributed $170 million of loss expense in the quarter, and in addition, losses included approximately $28 million of incremental loss expense associated with incurred but not reported (IBNR) delinquencies. U.S. MI also strengthened reserves on existing delinquencies by $28 million, primarily due to the deterioration of early cure emergence patterns impacting the frequency of claim, along with a modest increase in the estimated claim severity.
Australia Mortgage Insurance

Operating Metrics	
(Dollar amounts in millions)	  	Q2 20	 	 	Q1 20	 	 	Q2 19	 	
Adjusted operating income	  	$	1	 	 	$	9	 	 	$	13	 		
New insurance written	  				 				 					
Flow	  	$	4,400	 	 	$	4,100	 	 	$	3,700	 		
Bulk	  	$	100	 	 	$	200	 	 	$	1,200	 		
Loss ratio	  	 	63	% 	 	 	34	% 	 	 	34	% 		
Australia MI reported adjusted operating income of $1 million, down from $9 million in the prior quarter and $13 million in the prior year primarily from lower earned premiums and higher losses in the current quarter. Australia MI flow NIW increased 15 percent sequentially and increased 32 percent versus the prior year due to higher mortgage origination volume with continued low interest rates and improving consumer confidence. Through the second quarter, over 48,000 of Australia MI’s insured loans, or 4% of its insured loans in force, were enrolled in a payment deferral or payment holiday program. Under regulatory guidance, these loans, unless previously delinquent, are reported as current. The business strengthened its loss reserve by $18 million in the current quarter, including IBNR reserving for the loan payment deferrals, to reflect anticipated economic impacts caused by the COVID-19 pandemic. The loss ratio in the quarter was 63 percent, up 29 points both sequentially and versus prior year primarily due to the increases in loss reserves.
U.S. Life Insurance

Adjusted Operating Income (Loss)	
(Amounts in millions)	  	Q2 20	 	  	Q1 20	 	  	Q2 19	 	
Long Term Care Insurance	  	$	48	 	  	$	1	 	  	$	37	 		
Life Insurance	  	 	(81	) 	  	 	(77	) 	  	 	10	 		
Fixed Annuities	  	 	28	 	  	 	6	 	  	 	19	 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Total U.S. Life Insurance	  	$	(5	) 	  	$	(70	) 	  	$	66	 		

7

Long Term Care Insurance
Long term care insurance reported adjusted operating income of $48 million, compared with $1 million in the prior quarter and $37 million in the prior year. Mortality in the current quarter was higher compared to the prior quarter and prior year, impacting active claims, pending claims and active policies. Although it is not the company’s practice to track cause of death for LTC policyholders and claimants, current quarter LTC results were likely impacted by the COVID-19 pandemic. In light of the significant decrease in LTC new claim incidence the company has experienced during the COVID-19 pandemic, IBNR claim reserves were strengthened $37 million in the current quarter, reflecting the assumption that incidence during the quarter was temporarily delayed. The IBNR reserve strengthening partially offset the continued favorable development on IBNR claims. Premiums from in force rate actions were higher than the prior quarter and prior year, partially offset by less favorable impacts from benefit reductions.
Life Insurance
Life insurance reported an adjusted operating loss of $81 million, compared with an adjusted operating loss of $77 million in the prior quarter and adjusted operating income of $10 million in the prior year. Results reflected higher amortization of deferred acquisition costs (DAC) compared to the prior year, primarily associated with higher lapses from the large 20-year level-premium term life insurance block entering its post-level premium period. Results also reflected reserve increases during the premium grace period in the 10-year term universal life insurance block associated with policies entering the post-level premium period that were higher than the prior year and lower than the prior quarter. Universal life mortality was higher compared to the prior quarter and prior year, attributable in part to the COVID-19 pandemic. Prior year results included a reinsurance correction and a refinement resulting in a net favorable after-tax impact of $17 million.
Fixed Annuities
Fixed annuities reported adjusted operating income of $28 million, compared with $6 million in the prior quarter and $19 million in the prior year. Results versus the prior quarter and prior year reflected favorable reserve changes and DAC amortization due to the favorable equity market changes and higher mortality in the single premium immediate annuity product. Results versus the prior year also reflected lower net spreads and DAC amortization reflecting higher lapses. Results in the prior year included unfavorable after-tax charges of $4 million from loss recognition testing on the single premium immediate annuity block.
Runoff
Runoff reported adjusted operating income of $24 million, compared with an adjusted operating loss of $13 million in the prior quarter and adjusted operating income of $9 million in the prior year. Results in the current quarter reflected impacts in the company’s variable annuity business from favorable equity market performance compared to the prior quarter and prior year.
 
8

Corporate And Other
Corporate and Other reported an adjusted operating loss of $38 million, compared with $41 million in the prior quarter and $57 million in the prior year. Operating expenses in the current quarter were favorable compared to the prior quarter and prior year primarily from lower corporate spending. Additionally, results in the current quarter and prior quarter reflected lower interest expense compared to the prior year from the early redemption of Genworth Holdings, Inc.’s June 2020 senior notes in January 2020.
Capital & Liquidity
Genworth maintains the following capital positions in its operating subsidiaries:

Key Capital & Liquidity Metrics	
(Dollar amounts in millions)	  	Q2 20	 	 	Q1 20	 	 	Q2 19	 	
U.S. MI	  				 				 					
Consolidated Risk-To-Capital Ratio6	  	 	12.0:1	 	 	 	12.2:1	 	 	 	11.8:1	 		
Genworth Mortgage Insurance Corporation Risk-To-Capital Ratio6	  	 	12.2:1	 	 	 	12.4:1	 	 	 	12.1:1	 		
Private Mortgage Insurer Eligibility Requirements (PMIERs) Sufficiency Ratio6,7	  	 	143	% 	 	 	142	% 	 	 	123	% 		
Australia MI	  				 				 					
Prescribed Capital Amount (PCA) Ratio6	  	 	177	% 	 	 	178	% 	 	 	208	% 		
U.S. Life Insurance Companies	  				 				 					
Consolidated Risk-Based Capital (RBC) Ratio6	  	 	220	% 	 	 	194	% 	 	 	191	% 		
Holding Company Cash and Liquid Assets8,9	  	$	554	 	 	$	575	 	 	$	403	 		
Key Points
 
 	•	 	U.S. MI’s PMIERs sufficiency ratio is estimated to be 143 percent, $1,275 million above requirements. The PMIERs sufficiency ratio was up one percent, or $104 million sequentially, with improvement driven primarily from business cash flows, elevated lapse of existing business and an increase in reinsurance credit, partially offset by incremental new delinquencies and capital consumed by NIW. Both the current quarter and prior quarter ratios benefited from a 0.30 multiplier applied to the risk based required asset factor for loans, pursuant to recently announced GSE PMIERs guidance, which resulted in a reduction of PMIERs required assets by an estimated $1,057 million at the end of the quarter;	

6 	Company estimate for the second quarter of 2020 due to timing of the preparation and filing of statutory statements.	
7 	The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. The current period PMIERs sufficiency ratio is an estimate due to the timing of the PMIERs filing for the U.S. mortgage insurance business. As of June 30, 2020, March 31, 2020, and June 30, 2019, the PMIERs sufficiency ratios were in excess of $1.2 billion, $1.1 billion and $0.65 billion, respectively, of available assets above the applicable PMIERs requirements.	
8 	Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc.	
9 	Genworth Holdings, Inc. had $504 million, $525 million and $358 million of cash, cash equivalents and restricted cash as of June 30, 2020, March 31, 2020 and June 30, 2019, respectively, which included $10 million and $7 million of restricted cash and cash equivalents as of June 30, 2020 and June 30, 2019, respectively. Genworth Holdings, Inc. also held $50 million, $50 million and $45 million in U.S. government securities as of June 30, 2020, March 31, 2020 and June 30, 2019, respectively, which included $49 million, $50 million and $42 million, respectively, of restricted assets.	
 
9

 	•	 	In the current quarter, U.S. MI executed an aggregate excess of loss reinsurance transaction which provided up to $300 million of reinsurance coverage on the 2009-2019 book years to provide PMIERs capital credit for elevated delinquencies as a result of COVID-19. The PMIERs sufficiency in the current quarter included approximately $180 million of capital credit in respect of this transaction. Combined with the other outstanding credit risk transfer transactions, including the insurance linked note, the credit risk transfer program provided an aggregate of approximately $1.0 billion of PMIERs capital credit as of June 30, 2020;	
 
 	•	 	Australia MI’s PCA ratio is estimated to be 177 percent, above the company’s target operating range of 132 to 144 percent. The PCA ratio was down one point sequentially;	
 
 	•	 	Subsequent to quarter end, Australia MI executed a series of Tier 2 debt transactions that extended favorable regulatory capital credit;	
 
 	•	 	U.S. life insurance companies’ consolidated statutory risk-based capital is estimated to be 220%, up from the prior quarter primarily due to statutory income on LTC from favorable mortality and favorable equity market impacts on variable annuities during the current quarter; and	
 
 	•	 	The holding company ended the quarter with $554 million of cash and liquid assets, including $59 million that is restricted, which is above the company’s target of two times expected annual debt interest payments excluding restricted cash and liquid assets. During the second quarter, the holding company repurchased $52 million of its 2021 maturities at a $4 million discount. Subsequent to quarter end, the company made a £100 million payment ($125 million) to AXA related to the settlement agreement on July 21, 2020.	
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the “Investors” section of genworth.com. From time to time, Genworth’s publicly traded subsidiary, Genworth Mortgage Insurance Australia Limited, separately releases financial and other information about its operations. This information can be found at http://www.genworth.com.au.
 
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Conference Call And Financial Supplement Information
This press release and the second quarter 2020 financial supplement are now posted on the company’s website. Additional information regarding business results will be posted on the company’s website, http://investor.genworth.com, by 8:00 a.m. on July 30, 2020. Investors are encouraged to review these materials.
Genworth will conduct a conference call on July 30, 2020 at 9:00 a.m. (ET) to discuss business results and provide an update on strategic objectives, including the pending transaction with China Oceanwide. Genworth’s conference call will be accessible via telephone and the Internet. The dial-in number for Genworth’s July 30th conference call is 888 208.1820 or 323 794.2110 (outside the U.S.); conference ID # 6602361. To participate in the call by webcast, register at http://investor.genworth.com at least 15 minutes prior to the webcast to download and install any necessary software.
A replay of the call will be available at 888 203.1112 or 719 457.0820 (outside the U.S.); conference ID # 6602361 through August 14, 2020. The webcast will also be archived on the company’s website for one year.
 
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Use of Non-GAAP Measures
This press release includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.
While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth Financial, Inc.’s common stockholders or net income (loss) available to Genworth Financial, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.
Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21 percent tax rate for the company’s domestic segments and a 30 percent tax rate for its Australia Mortgage Insurance segment and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves.
In the second quarter of 2020, the company recorded a goodwill impairment of $3 million, net of the portion attributable to noncontrolling interests, in its Australia mortgage insurance business.
 
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During the second and first quarters of 2020, the company repurchased $52 million and $14 million, respectively, principal amount of Genworth Holdings, Inc.’s (Genworth Holdings) senior notes with 2021 maturity dates for a pre-tax gain of $3 million and $1 million, respectively. In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, the company’s indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income (loss) as they relate to gains (losses) on the early extinguishment of debt.
The company recorded a pre-tax expense of $1 million in both the second and first quarters of 2020 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.
The tables at the end of this press release provide a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the three months ended June 30, 2020 and 2019, as well as for the three months ended March 31, 2020, and reflect adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.
This press release includes the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP. In addition, the company’s definition of core yield may differ from the definitions used by other companies. A reconciliation of reported U.S. GAAP yield to core yield is included in a table at the end of this press release.
 
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Definition of Selected Operating Performance Measures
The company taxes its international businesses at their local jurisdictional tax rates and its domestic businesses at the U.S. corporate federal income tax rate of 21 percent. The company’s segment tax methodology applies the respective jurisdictional or domestic tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign withholding taxes and permanent differences between U.S. GAAP and local tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.
The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.
The company reports selected operating performance measures including “sales” and “insurance in force” or “risk in force” which are commonly used in the insurance industry as measures of operating performance.
Management regularly monitors and reports sales metrics as a measure of volume of new business generated in a period. Sales refer to new insurance written for mortgage insurance products. The company considers new insurance written to be a measure of the company’s operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of the company’s revenues or profitability during that period.
Management regularly monitors and reports insurance in force and risk in force. Insurance in force for the company’s mortgage insurance businesses is a measure of the aggregate original loan balance for outstanding insurance policies as of the respective reporting date. Risk in force for the company’s U.S. mortgage insurance business is based on the coverage percentage applied to the estimated current outstanding loan balance. Risk in force in the Australia mortgage insurance business is computed using an “effective” risk in force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in force has been calculated by applying to insurance in force a factor of 35 percent that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s mortgage insurance business in Australia. The company also has certain risk share arrangements in Australia where it provides pro-rata coverage of certain loans rather than 100 percent coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. The company considers insurance in force and risk in force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.
Management also regularly monitors and reports a loss ratio for the company’s businesses. For the mortgage insurance businesses, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.
These operating performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company’s
 
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future business and financial performance. Examples of forward-looking statements include statements the company makes relating to the closing of the transaction with China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, Oceanwide), Oceanwide’s funding plans and transactions the company is pursuing to address its near-term liabilities and financial obligations, which may include raising debt through its mortgage insurance subsidiaries and/or transactions to sell a percentage of its ownership interests in its mortgage insurance businesses, as well as statements the company makes regarding the potential impacts of the COVID-19 pandemic. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, business, competitive, market, regulatory and other factors and risks, including, but not limited to, the following:
 
 	•	 	risks related to the proposed transaction with Oceanwide including: the risk that Oceanwide will be unable to raise funding or the company’s inability to complete the Oceanwide transaction in a timely manner or at all, which may adversely affect the company’s business and the price of its common stock; the risk that the company will be unable to address its near-term liabilities and financial obligations, including the risks that it will be unable to raise new debt financing and/or sell a percentage of its ownership interest in its U.S. mortgage insurance business to repay the promissory note to AXA or refinance its debt maturing in 2021 or beyond; the parties’ inability to obtain regulatory approvals, clearances or extensions, or the possibility that such regulatory approvals or clearances may further delay the Oceanwide transaction or may not be received prior to September 30, 2020 (and either or both of the parties may not be willing to further waive their end date termination rights beyond September 30, 2020) or that materially burdensome or adverse regulatory conditions may be imposed or undesirable measures may be required in connection with any such regulatory approvals, clearances or extensions (including those conditions or measures that either or both of the parties may be unwilling to accept or undertake, as applicable) or that with continuing delays, circumstances may arise that make one or more previously obtained regulatory approvals or clearances no longer valid, one or both parties unwilling to proceed with the Oceanwide transaction or unable to comply with the conditions to existing regulatory approvals, or one or both of the parties may be unwilling to accept any new condition under a regulatory approval; the risk that the parties will not be able to obtain other regulatory approvals, clearances or extensions, including in connection with a potential alternative funding structure or the current geo-political environment, or that one or more regulators may rescind or fail to extend existing approvals, or that the revocation by one regulator of approvals will lead to the revocation of approvals by other regulators; the parties’ inability to obtain any necessary regulatory approvals, clearances or extensions for the post-closing capital plan; the risk that a condition to the closing of the Oceanwide transaction may not be satisfied or that a condition to closing that is currently satisfied may not remain satisfied due to the delay in closing the Oceanwide transaction or that the parties will be unable to agree upon a closing date following receipt of all regulatory approvals and clearances; the risk that existing and potential legal proceedings may be instituted against the company in connection with the Oceanwide transaction that may delay the transaction, make it more costly or ultimately preclude it; the risk that the proposed Oceanwide transaction disrupts the company’s current plans and operations as a result of the announcement and consummation of the transaction; potential adverse reactions or changes to the company’s business relationships with clients, employees, suppliers or other parties or other business uncertainties resulting from the announcement of the Oceanwide transaction or during the pendency of the transaction, including but not limited to such changes that could affect the company’s financial performance; certain restrictions during the pendency of the Oceanwide transaction that may impact the company’s ability to pursue certain business opportunities or strategic transactions; continued availability of capital and financing to the company before, or in the absence of, the consummation of the Oceanwide transaction; further rating agency actions and downgrades in the company’s credit or financial strength ratings; changes in applicable laws or regulations; the company’s ability to recognize the anticipated benefits of the Oceanwide transaction; the amount of the costs, fees, expenses and other charges related to the Oceanwide transaction; the risks related to diverting management’s attention from the company’s ongoing business operations; and the company’s ability to attract, recruit, retain and motivate current and prospective employees may be adversely affected;	
 
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 	•	 	strategic risks in the event the proposed transaction with Oceanwide is not consummated including: the company’s inability to successfully execute alternative strategic plans to effectively address its current business challenges (including with respect to stabilizing its U.S. life insurance businesses, debt and other obligations, cost savings, ratings and capital); the risk that the impacts of or uncertainty created by the COVID-19 pandemic delay or hinder alternative transactions or otherwise make alternative plans less attractive; the company’s inability to attract buyers for any businesses or other assets it may seek to sell, or securities it may seek to issue, in each case, in a timely manner and on anticipated terms; failure to obtain any required regulatory, stockholder and/or noteholder approvals or consents for such alternative strategic plans, or the company’s challenges changing or being more costly or difficult to successfully address than currently anticipated or the benefits achieved being less than anticipated; inability to achieve anticipated cost-savings in a timely manner; adverse tax or accounting charges; and the company’s ability to increase the capital needed in its mortgage insurance businesses in a timely manner and on anticipated terms, including through business performance, reinsurance or similar transactions, asset sales, securities offerings or otherwise, in each case as and when required;	
 
 	•	 	risks relating to estimates, assumptions and valuations including: inadequate reserves and the need to increase reserves (including as a result of any changes the company may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews, including reviews it expects to complete and carry out in the fourth quarter of 2020); risks related to the impact of the company’s annual review of assumptions and methodologies related to its long term care insurance claim reserves and margin reviews in the fourth quarter of 2020, including risks that additional information obtained in finalizing its claim reserves and margin reviews in the fourth quarter of 2020 or other changes to assumptions or methodologies materially affect margins; the inability to accurately estimate the impacts of the COVID-19 pandemic; inaccurate models; deviations from the company’s estimates and actuarial assumptions or other reasons in its long term care insurance, life insurance and/or annuity businesses; accelerated amortization of deferred acquisition costs (DAC) and present value of future profits (PVFP) (including as a result of any changes it may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews, including reviews it expects to complete and carry out in the fourth quarter of 2020); adverse impact on the company’s financial results as a result of projected profits followed by projected losses (as is currently the case with its long term care insurance business); adverse impact on the company’s results of operations, including the outcome of its reviews of the premium earnings pattern for its mortgage insurance businesses; and changes in valuation of fixed maturity and equity securities;	
 
 	•	 	risks relating to economic, market and political conditions including: downturns and volatility in global economies and equity and credit markets, including as a result of prolonged unemployment, a sustained low interest rate environment and other displacements caused by the COVID-19 pandemic; interest rates and changes in rates have adversely impacted, and may continue to materially adversely impact, the company’s business and profitability; deterioration in economic conditions or a decline in home prices that adversely affect the company’s loss experience in mortgage insurance; political and economic instability or changes in government policies; and fluctuations in foreign currency exchange rates and international securities markets;	
 
 	•	 	regulatory and legal risks including: extensive regulation of the company’s businesses and changes in applicable laws and regulations (including changes to tax laws and regulations); litigation and regulatory investigations or other actions; dependence on dividends and other distributions from the company’s subsidiaries (particularly its mortgage insurance subsidiaries) and the inability of any subsidiaries to pay dividends or make other distributions to the company, including as a result of the performance of its subsidiaries, heightened regulatory restrictions resulting from the COVID-19 pandemic, and other insurance, regulatory or corporate law restrictions; the inability to successfully seek in force rate action increases (including increased premiums and associated benefit reductions) in the company’s long term care insurance business, including as a result of the COVID-19 pandemic; adverse change in regulatory requirements, including risk-based capital; changes in regulations adversely affecting the company’s Australian mortgage insurance business; inability to continue to maintain the private mortgage insurer eligibility requirements (PMIERs); the impact on capital levels of increased delinquencies caused by the COVID-19 pandemic; inability of the company’s U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements; the influence of Federal	
 
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 	National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and a small number of large mortgage lenders on the U.S. mortgage insurance market and adverse changes to the role or structure of Fannie Mae and Freddie Mac; adverse changes in regulations affecting the company’s mortgage insurance businesses; additional restrictions placed on the company’s U.S. mortgage insurance business by government and government-owned and government-sponsored enterprises (GSEs) in connection with a new debt financing and/or sale of a percentage of its ownership interests therein; inability to continue to implement actions to mitigate the impact of statutory reserve requirements; changes in tax laws; and changes in accounting and reporting standards;	
 
 	•	 	liquidity, financial strength ratings, credit and counterparty risks including: insufficient internal sources to meet liquidity needs and limited or no access to capital (including the ability to obtain further financing, either through raising new debt financing and/or selling a percentage of the company’s ownership interests in its mortgage insurance businesses, or under a secured term loan or credit facility); the impact on holding company liquidity caused by the inability to receive dividends or other returns of capital from the company’s mortgage insurance businesses as a result of the COVID-19 pandemic; the impact of increased leverage as a result of the AXA settlement and related restrictions; continued availability of capital and financing; future adverse rating agency actions, including with respect to rating downgrades or potential downgrades or being put on review for potential downgrade, all of which could have adverse implications for the company, including with respect to key business relationships, product offerings, business results of operations, financial condition and capital needs, strategic plans, collateral obligations and availability and terms of hedging, reinsurance and borrowings; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of the company’s fixed maturity securities portfolio; and defaults on the company’s commercial mortgage loans or the mortgage loans underlying its investments in commercial mortgage-backed securities and volatility in performance;	
 
 	•	 	operational risks including: inability to retain, attract and motivate qualified employees or senior management; ineffective or inadequate risk management in identifying, controlling or mitigating risks; the impact on processes caused by shelter-in-place or other governmental restrictions imposed as a result of the COVID-19 pandemic; reliance on, and loss of, key customer or distribution relationships; competition, including in the company’s mortgage insurance businesses from GSEs offering mortgage insurance; the design and effectiveness of the company’s disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations; and failure or any compromise of the security of the company’s computer systems, disaster recovery systems and business continuity plans and failures to safeguard, or breaches of, its confidential information;	
 
 	•	 	insurance and product-related risks including: the company’s inability to increase premiums and reduce benefits sufficiently, and in a timely manner, on its in force long term care insurance policies, in each case, as currently anticipated and as may be required from time to time in the future (including as a result of a delay or failure to obtain any necessary regulatory approvals, including as a result of the COVID-19 pandemic, or unwillingness or inability of policyholders to pay increased premiums and/or accept reduced benefits), including to offset any negative impact on the company’s long term care insurance margins; availability, affordability and adequacy of reinsurance to protect the company against losses; decreases in the volume of high loan-to-value mortgage originations or increases in mortgage insurance cancellations; increases in the use of alternatives to private mortgage insurance and reductions in the level of coverage selected; potential liabilities in connection with the company’s U.S. contract underwriting services; and medical advances, such as genetic research and diagnostic imaging, and related legislation that impact policyholder behavior in ways adverse to the company;	
 
 	•	 	other risks including: impairments of or valuation allowances against the company’s deferred tax assets and the occurrence of natural or man-made disasters or a pandemic, such as the COVID-19 pandemic, could materially adversely affect its financial condition and results of operations.	
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. This press release does not constitute an offering of any securities.
 
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# # #
Contact Information:
 
Investors:	investorinfo@genworth.com	
 
Media:	Julie Westermann, 804 662.2423	
    	julie.westermann@genworth.com	
 
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Condensed Consolidated Statements of Income
(Amounts in millions, except per share amounts)
(Unaudited)

 	  	Three months ended
June 30,	 	 	Three months ended
March 31,
2020	 	
 	  	  2020  	 	 	  2019  	 				
Revenues:	  				 				 				
Premiums	  	$	1,019	 	 	$	1,001	 	 	$	1,015	 	
Net investment income	  	 	786	 	 	 	816	 	 	 	793	 	
Net investment gains (losses)	  	 	159	 	 	 	(46	) 	 	 	(152	) 	
Policy fees and other income	  	 	174	 	 	 	223	 	 	 	181	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	2,138	 	 	 	1,994	 	 	 	1,837	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses:	  				 				 				
Benefits and other changes in policy reserves	  	 	1,486	 	 	 	1,251	 	 	 	1,361	 	
Interest credited	  	 	139	 	 	 	146	 	 	 	141	 	
Acquisition and operating expenses, net of deferrals	  	 	223	 	 	 	229	 	 	 	249	 	
Amortization of deferred acquisition costs and intangibles	  	 	93	 	 	 	84	 	 	 	116	 	
Goodwill impairment	  	 	5	 	 	 	—  	 	 	 	—  	 	
Interest expense	  	 	44	 	 	 	60	 	 	 	52	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,990	 	 	 	1,770	 	 	 	1,919	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations before income taxes	  	 	148	 	 	 	224	 	 	 	(82	) 	
Provision (benefit) for income taxes	  	 	46	 	 	 	66	 	 	 	(10	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	  	 	102	 	 	 	158	 	 	 	(72	) 	
Income (loss) from discontinued operations, net of taxes	  	 	(520	) 	 	 	60	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	(418	) 	 	 	218	 	 	 	(72	) 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	23	 	 	 	15	 	 	 	(6	) 	
Less: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	35	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	  	$	(441	) 	 	$	168	 	 	$	(66	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders:	  				 				 				
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	  	$	79	 	 	$	143	 	 	$	(66	) 	
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders	  	 	(520	) 	 	 	25	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	  	$	(441	) 	 	$	168	 	 	$	(66	) 	

Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:	  				 				 				
Basic	  	$	0.16	 	 	$	0.29	 	 	$	(0.13	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.15	 	 	$	0.28	 	 	$	(0.13	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:	  				 				 				
Basic	  	$	(0.87	) 	 	$	0.33	 	 	$	(0.13	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	(0.86	) 	 	$	0.33	 	 	$	(0.13	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average common shares outstanding:	  				 				 				
Basic	  	 	505.4	 	 	 	503.4	 	 	 	504.3	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted10	  	 	512.5	 	 	 	508.7	 	 	 	504.3	 	

10 	Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.	
 
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Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)
(Amounts in millions, except per share amounts)
(Unaudited)

 	  	Three
months ended
June 30,	 	 	Three
months ended
March 31,
2020	 	
 	  	2020	 	 	2019	 				
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	  	$	(441	) 	 	$	168	 	 	$	(66	) 	
Add: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	23	 	 	 	15	 	 	 	(6	) 	
Add: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	35	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	(418	) 	 	 	218	 	 	 	(72	) 	
Less: income (loss) from discontinued operations, net of taxes	  	 	(520	) 	 	 	60	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	  	 	102	 	 	 	158	 	 	 	(72	) 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	23	 	 	 	15	 	 	 	(6	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	  	 	79	 	 	 	143	 	 	 	(66	) 	
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders:	  				 				 				
Net investment (gains) losses, net11	  	 	(131	) 	 	 	43	 	 	 	115	 	
Goodwill impairment, net12	  	 	3	 	 	 	—  	 	 	 	—  	 	
(Gains) losses on early extinguishment of debt	  	 	(3	) 	 	 	—  	 	 	 	12	 	
Expenses related to restructuring	  	 	1	 	 	 	—  	 	 	 	1	 	
Taxes on adjustments	  	 	30	 	 	 	(8	) 	 	 	(29	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income (loss)	  	$	(21	) 	 	$	178	 	 	$	33	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income (loss):	  				 				 				
U.S. Mortgage Insurance segment	  	$	(3	) 	 	$	147	 	 	$	148	 	
Australia Mortgage Insurance segment	  	 	1	 	 	 	13	 	 	 	9	 	
U.S. Life Insurance segment:	  				 				 				
Long Term Care Insurance	  	 	48	 	 	 	37	 	 	 	1	 	
Life Insurance	  	 	(81	) 	 	 	10	 	 	 	(77	) 	
Fixed Annuities	  	 	28	 	 	 	19	 	 	 	6	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total U.S. Life Insurance segment	  	 	(5	) 	 	 	66	 	 	 	(70	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Runoff segment	  	 	24	 	 	 	9	 	 	 	(13	) 	
Corporate and Other	  	 	(38	) 	 	 	(57	) 	 	 	(41	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income (loss)	  	$	(21	) 	 	$	178	 	 	$	33	 	

Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:	  				 				 				
Basic	  	$	(0.87	) 	 	$	0.33	 	 	$	(0.13	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	(0.86	) 	 	$	0.33	 	 	$	(0.13	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income (loss) per share:	  				 				 				
Basic	  	$	(0.04	) 	 	$	0.35	 	 	$	0.07	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	(0.04	) 	 	$	0.35	 	 	$	0.07	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average common shares outstanding:	  				 				 				
Basic	  	 	505.4	 	 	 	503.4	 	 	 	504.3	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted10	  	 	512.5	 	 	 	508.7	 	 	 	504.3	 	

11 	For the three months ended June 30, 2020, June 30, 2019 and March 31, 2020, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(4) million, $(3) million and $(11) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $32 million, $—million and $(26) million, respectively.	
12 	For the three months ended June 30, 2020, goodwill impairment was adjusted by $2 million related to the company’s mortgage insurance business in Australia for the portion attributable to noncontrolling interests.	
 
20

Condensed Consolidated Balance Sheets
(Amounts in millions)

 	  	June 30,
2020	 	 	December 31,
2019	 	
 	  	(Unaudited)	 	 	 	 	
Assets	  				 				
Cash, cash equivalents, restricted cash and invested assets	  	$	78,520	 	 	$	75,226	 	
Deferred acquisition costs	  	 	1,718	 	 	 	1,836	 	
Intangible assets and goodwill	  	 	223	 	 	 	201	 	
Reinsurance recoverable, net	  	 	16,900	 	 	 	17,103	 	
Deferred tax and other assets	  	 	740	 	 	 	868	 	
Separate account assets	  	 	5,536	 	 	 	6,108	 	
	  	 	 	 	 	 	 	 	
Total assets	  	$	103,637	 	 	$	101,342	 	
	  	 	 	 	 	 	 	 	
Liabilities and equity	  				 				
Liabilities:	  				 				
Future policy benefits	  	$	41,463	 	 	$	40,384	 	
Policyholder account balances	  	 	22,921	 	 	 	22,217	 	
Liability for policy and contract claims	  	 	11,280	 	 	 	10,958	 	
Unearned premiums	  	 	1,804	 	 	 	1,893	 	
Other liabilities	  	 	2,075	 	 	 	1,428	 	
Non-recourse funding obligations	  	 	—  	 	 	 	311	 	
Long-term borrowings	  	 	2,817	 	 	 	3,277	 	
Separate account liabilities	  	 	5,536	 	 	 	6,108	 	
Liabilities related to discontinued operations	  	 	653	 	 	 	134	 	
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	88,549	 	 	 	86,710	 	
	  	 	 	 	 	 	 	 	
Equity:	  				 				
Common stock	  	 	1	 	 	 	1	 	
Additional paid-in capital	  	 	11,996	 	 	 	11,990	 	
Accumulated other comprehensive income (loss)	  	 	4,447	 	 	 	3,433	 	
Retained earnings	  	 	899	 	 	 	1,461	 	
Treasury stock, at cost	  	 	(2,700	) 	 	 	(2,700	) 	
	  	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	14,643	 	 	 	14,185	 	
Noncontrolling interests	  	 	445	 	 	 	447	 	
	  	 	 	 	 	 	 	 	
Total equity	  	 	15,088	 	 	 	14,632	 	
	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	103,637	 	 	$	101,342	 	

21

Reconciliation of Adjusted Operating Income Previously Reported to Adjusted Operating Income
Re-Presented to Exclude Discontinued Operations
(Amounts in millions)

 	  	Three months ended	 	
 	  	June 30,	 	
 	  	2019	 	
Adjusted operating income as previously reported	  	$	204	 	
Remove Canada Mortgage Insurance segment adjusted operating income reported as discontinued operations	  	 	(41	) 	
Adjustment for corporate overhead allocations, net of taxes13	  	 	(5	) 	
Adjustment for interest on debt that was required to be repaid as a result of the disposal transaction, net of taxes14	  	 	6	 	
Tax adjustments15	  	 	14	 	
	  	 	 	 	
Re-presented adjusted operating income	  	$	178	 	

13 	Expenses previously reported in the Canada MI segment and moved to Corporate and Other Activities.	
14 	Interest on a senior secured term loan facility owed by Genworth Holdings, Inc. previously reported in Corporate and Other Activities and moved to discontinued operations.	
15 	Tax impacts resulting from the classification of Genworth Canada as held-for-sale.	
 
22

Impact of Foreign Exchange on Adjusted Operating Income and Flow New Insurance Written16
Three months ended June 30, 2020

 	  	Percentages
Including Foreign
Exchange	 	 	Percentages
Excluding Foreign
Exchange17	 	
Australia MI:	  				 				
Adjusted operating income	  	 	(92	)% 	 	 	(92	)% 	
Flow new insurance written	  	 	19	% 	 	 	32	% 	
Flow new insurance written (2Q20 vs. 1Q20)	  	 	7	% 	 	 	15	% 	

16 	All percentages are comparing the second quarter of 2020 to the second quarter of 2019 unless otherwise stated.	
17 	The impact of foreign exchange was calculated using the comparable prior period exchange rates.	
 
23

Reconciliation of Reported Yield to Core Yield

 	  	Three	 		
 	  	months ended	 		
	(Assets—amounts in billions)	  	June 30,
2020	 	 	March 31,
2020	 	
Reported Total Invested Assets and Cash	  	$	77.9	 	 	$	73.2	 		
Subtract:	  				 					
Securities lending	  	 	0.1	 	 	 	0.1	 		
Unrealized gains (losses)	  	 	9.7	 	 	 	6.0	 		
	  	 	 	 	 	 	 	 		
Adjusted End of Period Invested Assets and Cash	  	$	68.1	 	 	$	67.1	 		
	  	 	 	 	 	 	 	 		
Average Invested Assets and Cash Used in Reported and Core Yield Calculation	  	$	67.6	 	 	$	67.3	 		
	  	 	 	 	 	 	 	 		
	(Income—amounts in millions)	  	 	 	 	 	 	
Reported Net Investment Income	  	$	786	 	 	$	793	 		
Subtract:	  				 					
Bond calls and commercial mortgage loan prepayments	  	 	8	 	 	 	16	 		
Other non-core items18	  	 	2	 	 	 	7	 		
	  	 	 	 	 	 	 	 		
Core Net Investment Income	  	$	776	 	 	$	770	 		
	  	 	 	 	 	 	 	 		
Reported Yield	  	 	4.65	% 	 	 	4.71	% 		
	  	 	 	 	 	 	 	 		
Core Yield	  	 	4.59	% 	 	 	4.57	% 		

18 	Includes cost basis adjustments on structured securities and various other immaterial items.	
 
24

Exhibit 99.2

 

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020

	Table of Contents	  	Page	 	
Investor Letter	  	 	3	 		
Use of Non-GAAP Measures	  	 	4	 		
Results of Operations and Selected Operating Performance Measures	  	 	5	 		
Financial Highlights	  	 	6	 		
			
Consolidated Quarterly Results	  					
Consolidated Net Income (Loss) by Quarter	  	 	8	 		
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)	  	 	9	 		
Consolidated Balance Sheets	  	 	10-11	 		
Consolidated Balance Sheets by Segment	  	 	12-13	 		
Deferred Acquisition Costs (DAC) Rollforward	  	 	14	 		
			
Quarterly Results by Business	  					
Adjusted Operating Income (Loss) and Sales—U.S. Mortgage Insurance Segment	  	 	16-22	 		
Adjusted Operating Income and Sales—Australia Mortgage Insurance Segment	  	 	24-27	 		
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment	  	 	29-32	 		
Adjusted Operating Income (Loss)—Runoff Segment	  	 	34	 		
Adjusted Operating Loss—Corporate and Other Activities	  	 	36	 		
			
Additional Financial Data	  					
Investments Summary	  	 	38	 		
Fixed Maturity Securities Summary	  	 	39	 		
General Account U.S. GAAP Net Investment Income Yields	  	 	40	 		
Net Investment Gains (Losses), Net—Detail	  	 	41	 		
			
Reconciliations of Non-GAAP Measures	  					
Reconciliation of Operating Return On Equity (ROE)	  	 	43	 		
Reconciliation of Reported Yield to Core Yield	  	 	44	 		
			
Corporate Information	  					
Financial Strength Ratings	  	 	46	 		
Note:
Unless otherwise stated, all references in this financial supplement to income (loss) from continuing operations, income (loss) from continuing operations per share, net income (loss), net income (loss) per share, adjusted operating income (loss), adjusted operating income (loss) per share, book value and book value per share should be read as income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders, income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share, net income (loss) available to Genworth Financial, Inc.’s common stockholders, net income (loss) available to Genworth Financial, Inc.’s common stockholders per share, non-U.S. Generally Accepted Accounting Principles (U.S. GAAP) adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, non-GAAP adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share, book value available to Genworth Financial, Inc.’s common stockholders and book value available to Genworth Financial, Inc.’s common stockholders per share, respectively.
 
2

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Dear Investor,
Thank you for your continued interest in Genworth Financial, Inc.
Regards,
Investor Relations
InvestorInfo@genworth.com
 
3

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Use of Non-GAAP Measures
This financial supplement includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.
While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth Financial, Inc.’s common stockholders or net income (loss) available to Genworth Financial, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.
Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate for the company’s domestic segments and a 30% tax rate for its Australia Mortgage Insurance segment and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves (see page 41).
In the second quarter of 2020, the company recorded a goodwill impairment of $3 million, net of the portion attributable to noncontrolling interests, in its Australia mortgage insurance business.
During the second and first quarters of 2020, the company repurchased $52 million and $14 million, respectively, principal amount of Genworth Holdings, Inc.’s (Genworth Holdings) senior notes with 2021 maturity dates for a pre-tax gain of $3 million and $1 million, respectively. In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, the company’s indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income (loss) as they relate to gains (losses) on the early extinguishment of debt.
The company recorded a pre-tax expense of $1 million in both the second and first quarters of 2020 and $4 million in the first quarter of 2019 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.
The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. This financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 43 and 44 of this financial supplement.
 
4

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Results of Operations and Selected Operating Performance Measures
The company’s chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.
The company taxes its international businesses at their local jurisdictional tax rates and its domestic businesses at the U.S. corporate federal income tax rate of 21%. The company’s segment tax methodology applies the respective jurisdictional or domestic tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign withholding taxes and permanent differences between U.S. GAAP and local tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.
The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.
This financial supplement contains selected operating performance measures including “sales” and “insurance in-force” or “risk in-force” which are commonly used in the insurance industry as measures of operating performance.
Management regularly monitors and reports sales metrics as a measure of volume of new business generated in a period. Sales refer to new insurance written for mortgage insurance products. The company considers new insurance written to be a measure of the company’s operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of the company’s revenues or profitability during that period.
Management regularly monitors and reports insurance in-force and risk in-force. Insurance in-force for the company’s mortgage insurance businesses is a measure of the aggregate original loan balance for outstanding insurance policies as of the respective reporting date. Risk in-force for the company’s U.S. mortgage insurance business is based on the coverage percentage applied to the estimated current outstanding loan balance. Risk in-force in the Australia mortgage insurance business is computed using an “effective” risk in-force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor of 35% that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s mortgage insurance business in Australia. The company also has certain risk share arrangements in Australia where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. The company considers insurance in-force and risk in-force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.
Management also regularly monitors and reports a loss ratio for the company’s businesses. For the mortgage insurance businesses, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long-term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.
These operating performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.
 
5

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Financial Highlights
(amounts in millions, except per share data)

	Balance Sheet Data	  	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	 	June 30,
2019	 	
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	  	$	10,196	 	 	$	10,634	 	 	$	10,752	 	 	$	10,765	 	 	$	10,744	 		
Total accumulated other comprehensive income	  	 	4,447	 	 	 	3,815	 	 	 	3,433	 	 	 	3,622	 	 	 	3,013	 		
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Total Genworth Financial, Inc.’s stockholders’ equity	  	$	14,643	 	 	$	14,449	 	 	$	14,185	 	 	$	14,387	 	 	$	13,757	 		
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Book value per share	  	$	28.96	 	 	$	28.61	 	 	$	28.17	 	 	$	28.57	 	 	$	27.32	 		
Book value per share, excluding accumulated other comprehensive income	  	$	20.17	 	 	$	21.05	 	 	$	21.35	 	 	$	21.38	 	 	$	21.34	 		
Common shares outstanding as of the balance sheet date	  	 	505.6	 	 	 	505.1	 	 	 	503.5	 	 	 	503.5	 	 	 	503.5	 		
			
 	  	Twelve months ended	 		
	Twelve Month Rolling Average ROE	  	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	 	June 30,
2019	 	
U.S. GAAP Basis ROE	  	 	(4.8	)% 	 	 	1.0	% 	 	 	3.2	% 	 	 	0.3	% 	 	 	1.5	% 		
Operating ROE(1)	  	 	1.5	% 	 	 	3.3	% 	 	 	3.9	% 	 	 	0.9	% 	 	 	0.6	% 		
			
 	  	Three months ended	 		
	Quarterly Average ROE	  	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	 	June 30,
2019	 	
U.S. GAAP Basis ROE	  	 	(16.9	)% 	 	 	(2.5	)% 	 	 	(0.6	)% 	 	 	0.7	% 	 	 	6.3	% 		
Operating ROE(1)	  	 	(0.8	)% 	 	 	1.2	% 	 	 	0.9	% 	 	 	4.6	% 	 	 	6.7	% 		

	Basic and Diluted Shares	  	Three months ended
June 30, 2020	 	  	Six months ended
June 30, 2020	 	  	                                            	
Weighted-average common shares used in basic earnings per share calculations	  	 	505.4	 	  	 	504.8	 				
Potentially dilutive securities:	  				  							
Stock options, restricted stock units and stock appreciation rights	  	 	7.1	 	  	 	6.3	 				
	  	 	 	 	  	 	 	 				
Weighted-average common shares used in diluted earnings per share calculations	  	 	512.5	 	  	 	511.1	 				

(1) 	See page 43 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.    	
 
6

 
Consolidated Quarterly Results

 
7

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Consolidated Net Income (Loss) by Quarter
(amounts in millions, except per share amounts)

 	  	2020	 	 	2019	 	
 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	 				 				 				 				 				 				 				
Premiums	  	$	1,019	 	 	$	1,015	 	 	$	2,034	 	 	$	1,033	 	 	$	1,015	 	 	$	1,001	 	 	$	988	 	 	$	4,037	 	
Net investment income	  	 	786	 	 	 	793	 	 	 	1,579	 	 	 	794	 	 	 	816	 	 	 	816	 	 	 	794	 	 	 	3,220	 	
Net investment gains (losses)	  	 	159	 	 	 	(152	) 	 	 	7	 	 	 	23	 	 	 	(2	) 	 	 	(46	) 	 	 	75	 	 	 	50	 	
Policy fees and other income	  	 	174	 	 	 	181	 	 	 	355	 	 	 	188	 	 	 	191	 	 	 	223	 	 	 	187	 	 	 	789	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	2,138	 	 	 	1,837	 	 	 	3,975	 	 	 	2,038	 	 	 	2,020	 	 	 	1,994	 	 	 	2,044	 	 	 	8,096	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	1,486	 	 	 	1,361	 	 	 	2,847	 	 	 	1,346	 	 	 	1,284	 	 	 	1,251	 	 	 	1,282	 	 	 	5,163	 	
Interest credited	  	 	139	 	 	 	141	 	 	 	280	 	 	 	138	 	 	 	146	 	 	 	146	 	 	 	147	 	 	 	577	 	
Acquisition and operating expenses, net of deferrals	  	 	223	 	 	 	249	 	 	 	472	 	 	 	249	 	 	 	247	 	 	 	229	 	 	 	237	 	 	 	962	 	
Amortization of deferred acquisition costs and intangibles	  	 	93	 	 	 	116	 	 	 	209	 	 	 	164	 	 	 	112	 	 	 	84	 	 	 	81	 	 	 	441	 	
Goodwill impairment	  	 	5	 	 	 	—  	 	 	 	5	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Interest expense	  	 	44	 	 	 	52	 	 	 	96	 	 	 	60	 	 	 	59	 	 	 	60	 	 	 	60	 	 	 	239	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,990	 	 	 	1,919	 	 	 	3,909	 	 	 	1,957	 	 	 	1,848	 	 	 	1,770	 	 	 	1,807	 	 	 	7,382	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	148	 	 	 	(82	) 	 	 	66	 	 	 	81	 	 	 	172	 	 	 	224	 	 	 	237	 	 	 	714	 	
Provision (benefit) for income taxes	  	 	46	 	 	 	(10	) 	 	 	36	 	 	 	26	 	 	 	34	 	 	 	66	 	 	 	69	 	 	 	195	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	102	 	 	 	(72	) 	 	 	30	 	 	 	55	 	 	 	138	 	 	 	158	 	 	 	168	 	 	 	519	 	
Income (loss) from discontinued operations, net of taxes(1)	  	 	(520	) 	 	 	—  	 	 	 	(520	) 	 	 	(31	) 	 	 	(80	) 	 	 	60	 	 	 	62	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	(418	) 	 	 	(72	) 	 	 	(490	) 	 	 	24	 	 	 	58	 	 	 	218	 	 	 	230	 	 	 	530	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	23	 	 	 	(6	) 	 	 	17	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
Less: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	22	 	 	 	30	 	 	 	35	 	 	 	36	 	 	 	123	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	$	(441	) 	 	$	(66	) 	 	$	(507	) 	 	$	(17	) 	 	$	18	 	 	$	168	 	 	$	174	 	 	$	343	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:	  			 	 				 				 				 				 				 				 				
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	  	$	79	 	 	$	(66	) 	 	$	13	 	 	$	36	 	 	$	128	 	 	$	143	 	 	$	148	 	 	$	455	 	
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders	  	 	(520	) 	 	 	—  	 	 	 	(520	) 	 	 	(53	) 	 	 	(110	) 	 	 	25	 	 	 	26	 	 	 	(112	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	$	(441	) 	 	$	(66	) 	 	$	(507	) 	 	$	(17	) 	 	$	18	 	 	$	168	 	 	$	174	 	 	$	343	 	

Earnings (Loss) Per Share Data:	  				 				 				 				 				 				 				 				
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share	  				 				 				 				 				 				 				 				
Basic	  	$	0.16	 	 	$	(0.13	) 	 	$	0.03	 	 	$	0.07	 	 	$	0.25	 	 	$	0.29	 	 	$	0.29	 	 	$	0.90	 	
Diluted	  	$	0.15	 	 	$	(0.13	) 	 	$	0.03	 	 	$	0.07	 	 	$	0.25	 	 	$	0.28	 	 	$	0.29	 	 	$	0.89	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share	  				 				 				 				 				 				 				 				
Basic	  	$	(0.87	) 	 	$	(0.13	) 	 	$	(1.00	) 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.35	 	 	$	0.68	 	
Diluted	  	$	(0.86	) 	 	$	(0.13	) 	 	$	(0.99	) 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.34	 	 	$	0.67	 	
Weighted-average common shares outstanding	  				 				 				 				 				 				 				 				
Basic	  	 	505.4	 	 	 	504.3	 	 	 	504.8	 	 	 	503.5	 	 	 	503.5	 	 	 	503.4	 	 	 	501.2	 	 	 	502.9	 	
Diluted(2)	  	 	512.5	 	 	 	504.3	 	 	 	511.1	 	 	 	510.4	 	 	 	511.2	 	 	 	508.7	 	 	 	508.6	 	 	 	509.7	 	

(1) 	Income (loss) from discontinued operations relates to the company’s former Canada mortgage insurance business that was sold on December 12, 2019 and its former lifestyle protection insurance business that was sold on December 1, 2015. During the second quarter of 2020, the company recorded an after-tax loss of $520 million in connection with a settlement agreement reached with AXA S.A. (AXA), including legal fees and other expenses, regarding a dispute over payment protection insurance claims sold by its former lifestyle protection insurance business. During the fourth quarter of 2019, the company also recorded an after-tax loss of $110 million prior to reaching the settlement agreement with AXA.	
(2) 	Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.	
 
8

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)
(amounts in millions, except per share amounts)

 	  	2020	 	 	2019	 	
 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	$	(441	) 	 	$	(66	) 	 	$	(507	) 	 	$	(17	) 	 	$	18	 	 	$	168	 	 	$	174	 	 	$	343	 	
Add: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	23	 	 	 	(6	) 	 	 	17	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
Add: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	22	 	 	 	30	 	 	 	35	 	 	 	36	 	 	 	123	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	(418	) 	 	 	(72	) 	 	 	(490	) 	 	 	24	 	 	 	58	 	 	 	218	 	 	 	230	 	 	 	530	 	
Less: income (loss) from discontinued operations, net of taxes	  	 	(520	) 	 	 	—  	 	 	 	(520	) 	 	 	(31	) 	 	 	(80	) 	 	 	60	 	 	 	62	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	102	 	 	 	(72	) 	 	 	30	 	 	 	55	 	 	 	138	 	 	 	158	 	 	 	168	 	 	 	519	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	23	 	 	 	(6	) 	 	 	17	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	 	79	 	 	 	(66	) 	 	 	13	 	 	 	36	 	 	 	128	 	 	 	143	 	 	 	148	 	 	 	455	 	
	 								
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:	  			 	 				 				 				 				 				 				 				
Net investment (gains) losses, net(1)	  	 	(131	) 	 	 	115	 	 	 	(16	) 	 	 	(17	) 	 	 	(5	) 	 	 	43	 	 	 	(71	) 	 	 	(50	) 	
Goodwill impairment, net(2)	  	 	3	 	 	 	—  	 	 	 	3	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
(Gains) losses on early extinguishment of debt	  	 	(3	) 	 	 	12	 	 	 	9	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Expenses related to restructuring	  	 	1	 	 	 	1	 	 	 	2	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	
Taxes on adjustments	  	 	30	 	 	 	(29	) 	 	 	1	 	 	 	5	 	 	 	—  	 	 	 	(8	) 	 	 	14	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	(21	) 	 	$	33	 	 	$	12	 	 	$	24	 	 	$	123	 	 	$	178	 	 	$	95	 	 	$	420	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS):	  			 	 				 				 				 				 				 				 				
U.S. Mortgage Insurance segment	  	$	(3	) 	 	$	148	 	 	$	145	 	 	$	160	 	 	$	137	 	 	$	147	 	 	$	124	 	 	$	568	 	
Australia Mortgage Insurance segment	  	 	1	 	 	 	9	 	 	 	10	 	 	 	12	 	 	 	12	 	 	 	13	 	 	 	14	 	 	 	51	 	
U.S. Life Insurance segment:	  			 	 				 				 				 				 				 				 				
Long-Term Care Insurance	  	 	48	 	 	 	1	 	 	 	49	 	 	 	19	 	 	 	21	 	 	 	37	 	 	 	(20	) 	 	 	57	 	
Life Insurance	  	 	(81	) 	 	 	(77	) 	 	 	(158	) 	 	 	(164	) 	 	 	(25	) 	 	 	10	 	 	 	(2	) 	 	 	(181	) 	
Fixed Annuities	  	 	28	 	 	 	6	 	 	 	34	 	 	 	30	 	 	 	3	 	 	 	19	 	 	 	17	 	 	 	69	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total U.S. Life Insurance segment	  	 	(5	) 	 	 	(70	) 	 	 	(75	) 	 	 	(115	) 	 	 	(1	) 	 	 	66	 	 	 	(5	) 	 	 	(55	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Runoff segment	  	 	24	 	 	 	(13	) 	 	 	11	 	 	 	17	 	 	 	10	 	 	 	9	 	 	 	20	 	 	 	56	 	
Corporate and Other	  	 	(38	) 	 	 	(41	) 	 	 	(79	) 	 	 	(50	) 	 	 	(35	) 	 	 	(57	) 	 	 	(58	) 	 	 	(200	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	(21	) 	 	$	33	 	 	$	12	 	 	$	24	 	 	$	123	 	 	$	178	 	 	$	95	 	 	$	420	 	

Earnings (Loss) Per Share Data:	  				 				 				 				 				 				 				 				
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share	  				 				 				 				 				 				 				 				
Basic	  	$	(0.87	) 	 	$	(0.13	) 	 	$	(1.00	) 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.35	 	 	$	0.68	 	
Diluted	  	$	(0.86	) 	 	$	(0.13	) 	 	$	(0.99	) 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.34	 	 	$	0.67	 	
Adjusted operating income (loss) per share	  				 				 				 				 				 				 				 				
Basic	  	$	(0.04	) 	 	$	0.07	 	 	$	0.02	 	 	$	0.05	 	 	$	0.25	 	 	$	0.35	 	 	$	0.19	 	 	$	0.84	 	
Diluted	  	$	(0.04	) 	 	$	0.07	 	 	$	0.02	 	 	$	0.05	 	 	$	0.24	 	 	$	0.35	 	 	$	0.19	 	 	$	0.82	 	
Weighted-average common shares outstanding	  				 				 				 				 				 				 				 				
Basic	  	 	505.4	 	 	 	504.3	 	 	 	504.8	 	 	 	503.5	 	 	 	503.5	 	 	 	503.4	 	 	 	501.2	 	 	 	502.9	 	
Diluted(3)	  	 	512.5	 	 	 	504.3	 	 	 	511.1	 	 	 	510.4	 	 	 	511.2	 	 	 	508.7	 	 	 	508.6	 	 	 	509.7	 	

(1) 	Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests and DAC and other intangible amortization and certain benefit reserves (see page 41 for reconciliation).	
(2) 	For the three and six months ended June 30, 2020, goodwill impairment was adjusted by $2 million related to the company’s mortgage insurance business in Australia for the portion attributable to noncontrolling interests.	
(3) 	Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.	
 
9

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Consolidated Balance Sheets
(amounts in millions)

 	  	June 30,
2020	 	  	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	 	June 30,
2019	 	
ASSETS	  			 	  				 				 				 				
Investments:	  			 	  				 				 				 				
Fixed maturity securities available-for-sale, at fair value(1)	  	$	63,544	 	  	$	59,051	 	 	$	60,339	 	 	$	61,233	 	 	$	59,491	 	
Equity securities, at fair value	  	 	206	 	  	 	188	 	 	 	239	 	 	 	239	 	 	 	262	 	
Commercial mortgage loans(2)	  	 	6,945	 	  	 	6,944	 	 	 	6,976	 	 	 	7,045	 	 	 	7,030	 	
Less: Allowance for credit losses	  	 	(28	) 	  	 	(29	) 	 	 	(13	) 	 	 	(12	) 	 	 	(11	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial mortgage loans, net	  	 	6,917	 	  	 	6,915	 	 	 	6,963	 	 	 	7,033	 	 	 	7,019	 	
Policy loans	  	 	2,182	 	  	 	2,052	 	 	 	2,058	 	 	 	2,069	 	 	 	2,076	 	
Other invested assets	  	 	2,473	 	  	 	2,465	 	 	 	1,632	 	 	 	1,693	 	 	 	1,396	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total investments	  	 	75,322	 	  	 	70,671	 	 	 	71,231	 	 	 	72,267	 	 	 	70,244	 	
Cash, cash equivalents and restricted cash	  	 	2,597	 	  	 	2,483	 	 	 	3,341	 	 	 	1,629	 	 	 	1,715	 	
Accrued investment income	  	 	601	 	  	 	707	 	 	 	654	 	 	 	643	 	 	 	595	 	
Deferred acquisition costs	  	 	1,718	 	  	 	1,898	 	 	 	1,836	 	 	 	1,881	 	 	 	1,980	 	
Intangible assets and goodwill	  	 	223	 	  	 	263	 	 	 	201	 	 	 	210	 	 	 	229	 	
Reinsurance recoverable	  	 	16,944	 	  	 	17,122	 	 	 	17,103	 	 	 	17,180	 	 	 	17,211	 	
Less: Allowance for credit losses	  	 	(44	) 	  	 	(42	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reinsurance recoverable, net	  	 	16,900	 	  	 	17,080	 	 	 	17,103	 	 	 	17,180	 	 	 	17,211	 	
Other assets	  	 	454	 	  	 	456	 	 	 	443	 	 	 	479	 	 	 	516	 	
Deferred tax asset	  	 	286	 	  	 	319	 	 	 	425	 	 	 	236	 	 	 	383	 	
Separate account assets	  	 	5,536	 	  	 	4,967	 	 	 	6,108	 	 	 	6,005	 	 	 	6,187	 	
Assets held for sale related to discontinued operations(3)	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	5,123	 	 	 	5,246	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	103,637	 	  	$	98,844	 	 	$	101,342	 	 	$	105,653	 	 	$	104,306	 	

 

(1) 	Amortized cost of $54,834 million and $54,136 million as of June 30, 2020 and March 31, 2020, respectively, and allowance for credit losses of $7 million and $— million as of June 30, 2020 and March 31, 2020, respectively.	
(2) 	Net of unamortized balance of loan origination fees and costs of $4 million as of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019.	
(3) 	Prior to the sale on December 12, 2019, the assets of the company’s former Canada mortgage insurance business were held for sale related to discontinued operations and segregated in the consolidated balance sheets.	
 
10

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Consolidated Balance Sheets
(amounts in millions)

 	  	June 30,
2020	 	  	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	 	June 30,
2019	 	
LIABILITIES AND EQUITY	  			 	  				 				 				 				
Liabilities:	  			 	  				 				 				 				
Future policy benefits	  	$	41,463	 	  	$	39,339	 	 	$	40,384	 	 	$	40,489	 	 	$	39,583	 	
Policyholder account balances	  	 	22,921	 	  	 	22,313	 	 	 	22,217	 	 	 	22,607	 	 	 	22,673	 	
Liability for policy and contract claims	  	 	11,280	 	  	 	11,132	 	 	 	10,958	 	 	 	10,780	 	 	 	10,586	 	
Unearned premiums	  	 	1,804	 	  	 	1,722	 	 	 	1,893	 	 	 	1,863	 	 	 	1,917	 	
Other liabilities(1)	  	 	2,075	 	  	 	1,686	 	 	 	1,428	 	 	 	1,445	 	 	 	1,604	 	
Non-recourse funding obligations	  	 	—  	 	  	 	—  	 	 	 	311	 	 	 	311	 	 	 	311	 	
Long-term borrowings	  	 	2,817	 	  	 	2,851	 	 	 	3,277	 	 	 	3,706	 	 	 	3,711	 	
Separate account liabilities	  	 	5,536	 	  	 	4,967	 	 	 	6,108	 	 	 	6,005	 	 	 	6,187	 	
Liabilities held for sale related to discontinued operations(1),(2)	  	 	653	 	  	 	—  	 	 	 	134	 	 	 	2,302	 	 	 	2,142	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	88,549	 	  	 	84,010	 	 	 	86,710	 	 	 	89,508	 	 	 	88,714	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity:	  			 	  				 				 				 				
Common stock	  	 	1	 	  	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	
Additional paid-in capital	  	 	11,996	 	  	 	11,993	 	 	 	11,990	 	 	 	11,986	 	 	 	11,983	 	
Accumulated other comprehensive income (loss)	  	 	4,447	 	  	 	3,815	 	 	 	3,433	 	 	 	3,622	 	 	 	3,013	 	
Retained earnings	  	 	899	 	  	 	1,340	 	 	 	1,461	 	 	 	1,478	 	 	 	1,460	 	
Treasury stock, at cost	  	 	(2,700	) 	  	 	(2,700	) 	 	 	(2,700	) 	 	 	(2,700	) 	 	 	(2,700	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	14,643	 	  	 	14,449	 	 	 	14,185	 	 	 	14,387	 	 	 	13,757	 	
Noncontrolling interests	  	 	445	 	  	 	385	 	 	 	447	 	 	 	1,758	 	 	 	1,835	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	15,088	 	  	 	14,834	 	 	 	14,632	 	 	 	16,145	 	 	 	15,592	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	103,637	 	  	$	98,844	 	 	$	101,342	 	 	$	105,653	 	 	$	104,306	 	

 

(1) 	Certain liability balances have been reclassified as of December 31, 2019 to conform to the current period presentation.	
(2) 	Liabilities related to discontinued operations as of June 30, 2020 relates to a contingent liability recorded in connection with a settlement agreement reached with AXA involving the sale of the company’s former lifestyle protection insurance business. The company also recorded a contingent liability as of December 31, 2019 prior to reaching the settlement agreement with AXA. In addition, prior to the sale on December 12, 2019, the liabilities of the company’s Canada mortgage insurance business were held for sale related to discontinued operations and segregated in the consolidated balance sheets.	
 
11

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Consolidated Balance Sheet by Segment
(amounts in millions)

 	  	June 30, 2020	 	
 	  	U.S.
Mortgage
Insurance	 	  	Australia
Mortgage
Insurance	 	  	U.S. Life
Insurance	 	 	Runoff	 	  	Corporate and
Other(1)	 	 	Total	 	
ASSETS	  				  				  				 				  				 				
Cash and investments	  	$	4,831	 	  	$	2,216	 	  	$	66,136	 	 	$	3,355	 	  	$	1,982	 	 	$	78,520	 	
Deferred acquisition costs and intangible assets	  	 	49	 	  	 	82	 	  	 	1,650	 	 	 	149	 	  	 	11	 	 	 	1,941	 	
Reinsurance recoverable, net	  	 	—  	 	  	 	2	 	  	 	16,164	 	 	 	734	 	  	 	—  	 	 	 	16,900	 	
Deferred tax and other assets	  	 	64	 	  	 	139	 	  	 	(121	) 	 	 	9	 	  	 	649	 	 	 	740	 	
Separate account assets	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	5,536	 	  	 	—  	 	 	 	5,536	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,944	 	  	$	2,439	 	  	$	83,829	 	 	$	9,783	 	  	$	2,642	 	 	$	103,637	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	  				  				  				 				  				 				
Liabilities:	  				  				  				 				  				 				
Future policy benefits	  	$	—  	 	  	$	—  	 	  	$	41,461	 	 	$	2	 	  	$	—  	 	 	$	41,463	 	
Policyholder account balances	  	 	—  	 	  	 	—  	 	  	 	19,317	 	 	 	3,604	 	  	 	—  	 	 	 	22,921	 	
Liability for policy and contract claims	  	 	439	 	  	 	226	 	  	 	10,583	 	 	 	25	 	  	 	7	 	 	 	11,280	 	
Unearned premiums	  	 	340	 	  	 	994	 	  	 	466	 	 	 	4	 	  	 	—  	 	 	 	1,804	 	
Other liabilities	  	 	115	 	  	 	192	 	  	 	1,142	 	 	 	48	 	  	 	578	 	 	 	2,075	 	
Borrowings	  	 	—  	 	  	 	138	 	  	 	—  	 	 	 	—  	 	  	 	2,679	 	 	 	2,817	 	
Separate account liabilities	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	5,536	 	  	 	—  	 	 	 	5,536	 	
Liabilities related to discontinued operations	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	653	 	 	 	653	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	894	 	  	 	1,550	 	  	 	72,969	 	 	 	9,219	 	  	 	3,917	 	 	 	88,549	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Equity:	  				  				  				 				  				 				
Allocated equity, excluding accumulated other comprehensive income (loss)	  	 	3,897	 	  	 	422	 	  	 	6,546	 	 	 	538	 	  	 	(1,207	) 	 	 	10,196	 	
Allocated accumulated other comprehensive income (loss)	  	 	153	 	  	 	22	 	  	 	4,314	 	 	 	26	 	  	 	(68	) 	 	 	4,447	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	4,050	 	  	 	444	 	  	 	10,860	 	 	 	564	 	  	 	(1,275	) 	 	 	14,643	 	
Noncontrolling interests	  	 	—  	 	  	 	445	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	445	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total equity	  	 	4,050	 	  	 	889	 	  	 	10,860	 	 	 	564	 	  	 	(1,275	) 	 	 	15,088	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	4,944	 	  	$	2,439	 	  	$	83,829	 	 	$	9,783	 	  	$	2,642	 	 	$	103,637	 	

(1) 	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.    	
 
12

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Consolidated Balance Sheet by Segment
(amounts in millions)

 	  	March 31, 2020	 	
 	  	U.S.
Mortgage
Insurance	 	 	Australia
Mortgage
Insurance	 	 	U.S. Life
Insurance	 	 	Runoff	 	 	Corporate and
Other(1)	 	 	Total	 	
ASSETS	  				 				 				 				 				 				
Cash and investments	  	$	4,385	 	 	$	1,915	 	 	$	62,482	 	 	$	3,634	 	 	$	1,445	 	 	$	73,861	 	
Deferred acquisition costs and intangible assets	  	 	48	 	 	 	81	 	 	 	1,855	 	 	 	166	 	 	 	11	 	 	 	2,161	 	
Reinsurance recoverable, net	  	 	—  	 	 	 	4	 	 	 	16,322	 	 	 	754	 	 	 	—  	 	 	 	17,080	 	
Deferred tax and other assets	  	 	109	 	 	 	146	 	 	 	(95	) 	 	 	(19	) 	 	 	634	 	 	 	775	 	
Separate account assets	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4,967	 	 	 	—  	 	 	 	4,967	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	4,542	 	 	$	2,146	 	 	$	80,564	 	 	$	9,502	 	 	$	2,090	 	 	$	98,844	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	  				 				 				 				 				 				
Liabilities:	  				 				 				 				 				 				
Future policy benefits	  	$	—  	 	 	$	—  	 	 	$	39,337	 	 	$	2	 	 	$	—  	 	 	$	39,339	 	
Policyholder account balances	  	 	—  	 	 	 	—  	 	 	 	18,684	 	 	 	3,629	 	 	 	—  	 	 	 	22,313	 	
Liability for policy and contract claims	  	 	230	 	 	 	184	 	 	 	10,702	 	 	 	10	 	 	 	6	 	 	 	11,132	 	
Unearned premiums	  	 	366	 	 	 	876	 	 	 	476	 	 	 	4	 	 	 	—  	 	 	 	1,722	 	
Other liabilities	  	 	71	 	 	 	203	 	 	 	733	 	 	 	43	 	 	 	636	 	 	 	1,686	 	
Borrowings	  	 	—  	 	 	 	122	 	 	 	—  	 	 	 	—  	 	 	 	2,729	 	 	 	2,851	 	
Separate account liabilities	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4,967	 	 	 	—  	 	 	 	4,967	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	667	 	 	 	1,385	 	 	 	69,932	 	 	 	8,655	 	 	 	3,371	 	 	 	84,010	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity:	  				 				 				 				 				 				
Allocated equity, excluding accumulated other comprehensive income (loss)	  	 	3,891	 	 	 	395	 	 	 	6,643	 	 	 	850	 	 	 	(1,145	) 	 	 	10,634	 	
Allocated accumulated other comprehensive income (loss)	  	 	(16	) 	 	 	(19	) 	 	 	3,989	 	 	 	(3	) 	 	 	(136	) 	 	 	3,815	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	3,875	 	 	 	376	 	 	 	10,632	 	 	 	847	 	 	 	(1,281	) 	 	 	14,449	 	
Noncontrolling interests	  	 	—  	 	 	 	385	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	385	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	3,875	 	 	 	761	 	 	 	10,632	 	 	 	847	 	 	 	(1,281	) 	 	 	14,834	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	4,542	 	 	$	2,146	 	 	$	80,564	 	 	$	9,502	 	 	$	2,090	 	 	$	98,844	 	

(1) 	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.    	
 
13

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Deferred Acquisition Costs Rollforward
(amounts in millions)

 	  	U.S.
Mortgage
Insurance	 	 	Australia
Mortgage
Insurance	 	 	U.S. Life
Insurance	 	 	Runoff	 	 	Total	 	
Unamortized balance as of March 31, 2020	  	$	30	 	 	$	32	 	 	$	2,954	 	 	$	158	 	 	$	3,174	 	
Costs deferred	  	 	3	 	 	 	3	 	 	 	(1	) 	 	 	—  	 	 	 	5	 	
Amortization, net of interest accretion	  	 	(1	) 	 	 	(3	) 	 	 	(74	) 	 	 	—  	 	 	 	(78	) 	
Impact of foreign currency translation	  	 	—  	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unamortized balance as of June 30, 2020	  	 	32	 	 	 	36	 	 	 	2,879	 	 	 	158	 	 	 	3,105	 	
Effect of accumulated net unrealized investment (gains) losses	  	 	—  	 	 	 	—  	 	 	 	(1,375	) 	 	 	(12	) 	 	 	(1,387	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of June 30, 2020	  	$	32	 	 	$	36	 	 	$	1,504	 	 	$	146	 	 	$	1,718	 	

14

 
U.S. Mortgage Insurance Segment

 
 
15

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Adjusted Operating Income (Loss) and Sales—U.S. Mortgage Insurance Segment
(amounts in millions)

 	 	2020	 	 	2019	 	
 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	 			 	 				 				 				 				 				 				 				
Premiums	 	$	243	 	 	$	226	 	 	$	469	 	 	$	237	 	 	$	219	 	 	$	206	 	 	$	194	 	 	$	856	 	
Net investment income	 	 	31	 	 	 	33	 	 	 	64	 	 	 	30	 	 	 	31	 	 	 	28	 	 	 	28	 	 	 	117	 	
Net investment gains (losses)	 	 	(1	) 	 	 	—  	 	 	 	(1	) 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	
Policy fees and other income	 	 	1	 	 	 	2	 	 	 	3	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	4	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	274	 	 	 	261	 	 	 	535	 	 	 	269	 	 	 	251	 	 	 	235	 	 	 	223	 	 	 	978	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	 			 	 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	 	 	228	 	 	 	19	 	 	 	247	 	 	 	11	 	 	 	23	 	 	 	—  	 	 	 	16	 	 	 	50	 	
Acquisition and operating expenses, net of deferrals	 	 	47	 	 	 	50	 	 	 	97	 	 	 	50	 	 	 	51	 	 	 	44	 	 	 	46	 	 	 	191	 	
Amortization of deferred acquisition costs and intangibles	 	 	4	 	 	 	4	 	 	 	8	 	 	 	4	 	 	 	3	 	 	 	4	 	 	 	4	 	 	 	15	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	 	 	279	 	 	 	73	 	 	 	352	 	 	 	65	 	 	 	77	 	 	 	48	 	 	 	66	 	 	 	256	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	 	 	(5	) 	 	 	188	 	 	 	183	 	 	 	204	 	 	 	174	 	 	 	187	 	 	 	157	 	 	 	722	 	
Provision (benefit) for income taxes	 	 	(1	) 	 	 	40	 	 	 	39	 	 	 	43	 	 	 	37	 	 	 	40	 	 	 	33	 	 	 	153	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	 	 	(4	) 	 	 	148	 	 	 	144	 	 	 	161	 	 	 	137	 	 	 	147	 	 	 	124	 	 	 	569	 	
	 								
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	 			 	 				 				 				 				 				 				 				
Net investment (gains) losses	 	 	1	 	 	 	—  	 	 	 	1	 	 	 	(1)	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	
Taxes on adjustments	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	 	$	(3	) 	 	$	148	 	 	$	145	 	 	$	160	 	 	$	137	 	 	$	147	 	 	$	124	 	 	$	568	 	

SALES:	 				 				 				 				 				 				 				 				
Flow New Insurance Written (NIW)	 	$	28,400	 	 	$	17,900	 	 	$	46,300	 	 	$	18,100	 	 	$	18,900	 	 	$	15,800	 	 	$	9,600	 	 	$	62,400	 	
 
16

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Flow New Insurance Written Metrics—U.S. Mortgage Insurance Segment
(amounts in millions)

 	 	2020	 	 	2019	 	
 	 	2Q	 	 	1Q	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	
 	 	Flow
NIW	 	 	% of
Flow
NIW	 	 	Flow
NIW	 	 	% of
Flow
NIW	 	 	Flow
NIW	 	 	% of
Flow
NIW	 	 	Flow
NIW	 	 	% of
Flow
NIW	 	 	Flow
NIW	 	 	% of
Flow
NIW	 	 	Flow
NIW	 	 	% of
Flow
NIW	 	
Product	 				 			 	 				 				 				 				 				 				 				 				 				 				
Monthly(1)	 	$	25,900	 	 	 	91	% 	 	$	16,400	 	 	 	92	% 	 	$	16,300	 	 	 	90	% 	 	$	16,800	 	 	 	89	% 	 	$	13,900	 	 	 	88	% 	 	$	8,400	 	 	 	87	% 	
Single	 	 	2,500	 	 	 	9	 	 	 	1,500	 	 	 	8	 	 	 	1,800	 	 	 	10	 	 	 	2,100	 	 	 	11	 	 	 	1,900	 	 	 	12	 	 	 	1,200	 	 	 	13	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Flow	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FICO Scores	 				 			 	 				 				 				 				 				 				 				 				 				 				
Over 735	 	$	17,900	 	 	 	63	% 	 	$	11,200	 	 	 	63	% 	 	$	11,200	 	 	 	62	% 	 	$	11,300	 	 	 	60	% 	 	$	9,200	 	 	 	58	% 	 	$	5,500	 	 	 	57	% 	
680-735	 	 	8,900	 	 	 	31	 	 	 	5,800	 	 	 	32	 	 	 	6,000	 	 	 	33	 	 	 	6,300	 	 	 	33	 	 	 	5,500	 	 	 	35	 	 	 	3,300	 	 	 	35	 	
660-679(2)	 	 	900	 	 	 	3	 	 	 	500	 	 	 	3	 	 	 	500	 	 	 	3	 	 	 	700	 	 	 	4	 	 	 	600	 	 	 	4	 	 	 	400	 	 	 	4	 	
620-659	 	 	700	 	 	 	3	 	 	 	400	 	 	 	2	 	 	 	400	 	 	 	2	 	 	 	600	 	 	 	3	 	 	 	500	 	 	 	3	 	 	 	400	 	 	 	4	 	
<620	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Flow	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loan-To-Value Ratio	 				 			 	 				 				 				 				 				 				 				 				 				 				
95.01% and above	 	$	3,200	 	 	 	11	% 	 	$	1,800	 	 	 	10	% 	 	$	2,000	 	 	 	11	% 	 	$	2,900	 	 	 	16	% 	 	$	2,900	 	 	 	18	% 	 	$	1,800	 	 	 	19	% 	
90.01% to 95.00%	 	 	12,300	 	 	 	43	 	 	 	7,700	 	 	 	43	 	 	 	7,900	 	 	 	44	 	 	 	8,000	 	 	 	42	 	 	 	6,900	 	 	 	44	 	 	 	4,200	 	 	 	44	 	
85.01% to 90.00%	 	 	8,100	 	 	 	29	 	 	 	5,500	 	 	 	31	 	 	 	5,600	 	 	 	31	 	 	 	5,500	 	 	 	29	 	 	 	4,300	 	 	 	27	 	 	 	2,500	 	 	 	26	 	
85.00% and below	 	 	4,800	 	 	 	17	 	 	 	2,900	 	 	 	16	 	 	 	2,600	 	 	 	14	 	 	 	2,500	 	 	 	13	 	 	 	1,700	 	 	 	11	 	 	 	1,100	 	 	 	11	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Flow	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Origination	 				 			 	 				 				 				 				 				 				 				 				 				 				
Purchase	 	$	17,400	 	 	 	61	% 	 	$	12,000	 	 	 	67	% 	 	$	12,900	 	 	 	71	% 	 	$	14,900	 	 	 	79	% 	 	$	13,900	 	 	 	88	% 	 	$	8,600	 	 	 	90	% 	
Refinance	 	 	11,000	 	 	 	39	 	 	 	5,900	 	 	 	33	 	 	 	5,200	 	 	 	29	 	 	 	4,000	 	 	 	21	 	 	 	1,900	 	 	 	12	 	 	 	1,000	 	 	 	10	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Flow	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	

 

(1) 	Includes loans with annual and split payment types.    	
(2) 	Loans with unknown FICO scores are included in the 660-679 category.    	
 
17

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Other Metrics—U.S. Mortgage Insurance Segment
(dollar amounts in millions)

 	  	2020	 	 	2019	 	
 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Net Premiums Written	  	$	217	 	 	$	208	 	 	$	425	 	 	$	208	 	 	$	213	 	 	$	204	 	 	$	193	 	 	$	818	 	
	 								
Flow New Risk Written	  	$	7,011	 	 	$	4,405	 	 	$	11,416	 	 	$	4,465	 	 	$	4,647	 	 	$	3,931	 	 	$	2,403	 	 	$	15,446	 	
	 								
Primary Insurance In-Force(1)	  	$	207,400	 	 	$	198,500	 	 				 	$	192,100	 	 	$	186,300	 	 	$	178,500	 	 	$	170,400	 	 				
	 								
Risk In-Force	  			 	 				 				 				 				 				 				 				
Flow(2)	  	$	49,851	 	 	$	47,723	 	 				 	$	46,228	 	 	$	44,885	 	 	$	42,917	 	 	$	41,020	 	 				
Bulk(3)	  	 	135	 	 	 	143	 	 				 	 	150	 	 	 	160	 	 	 	167	 	 	 	173	 	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Primary	  	 	49,986	 	 	 	47,866	 	 				 	 	46,378	 	 	 	45,045	 	 	 	43,084	 	 	 	41,193	 	 				
Pool	  	 	51	 	 	 	53	 	 				 	 	56	 	 	 	59	 	 	 	62	 	 	 	66	 	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Risk In-Force	  	$	50,037	 	 	$	47,919	 	 				 	$	46,434	 	 	$	45,104	 	 	$	43,146	 	 	$	41,259	 	 				

Primary Risk In-Force That Is GSE Conforming	  	 	93	% 	 	 	92	% 	 				 	 	93	% 	 	 	93	% 	 	 	93	% 	 	 	93	% 	 				
	 								
Expense Ratio (Net Earned Premiums)(4)	  	 	21	% 	 	 	24	% 	 	 	22	% 	 	 	23	% 	 	 	24	% 	 	 	24	% 	 	 	25	% 	 	 	24	% 	
	 								
Expense Ratio (Net Premiums Written)(5)	  	 	23	% 	 	 	26	% 	 	 	25	% 	 	 	27	% 	 	 	25	% 	 	 	24	% 	 	 	26	% 	 	 	25	% 	
	 								
Flow Persistency	  	 	60	% 	 	 	76	% 	 				 	 	74	% 	 	 	75	% 	 	 	82	% 	 	 	86	% 	 				
	 								
Risk To Capital Ratio(6)	  	 	12.0:1	 	 	 	12.2:1	 	 				 	 	12.2:1	 	 	 	11.9:1	 	 	 	11.8:1	 	 	 	11.9:1	 	 				
	 								
PMIERs Sufficiency Ratio(7)	  	 	143	% 	 	 	142	% 	 				 	 	138	% 	 	 	129	% 	 	 	123	% 	 	 	123	% 	 				
	 								
Average Primary Loan Size (in thousands)	  	$	229	 	 	$	226	 	 				 	$	223	 	 	$	221	 	 	$	218	 	 	$	215	 	 				
The expense ratios included above were calculated using whole dollars and may be different than the ratios calculated using the rounded numbers included herein.    

(1) 	Primary insurance in-force represents aggregate loan balances for outstanding insurance policies and is used to determine premiums. Original loan balances are presented for policies with level renewal premiums. Amortized loan balances are presented for policies with annual, amortizing renewal premiums.    	
(2) 	Flow risk in-force represents current loan balances as provided by servicers, lenders and investors and conforms to the presentation under the Private Mortgage Insurer Eligibility Requirements (PMIERs).    	
(3) 	As of June 30, 2020, 87% of the bulk risk in-force was related to loans finmanced by lenders who participated in the mortgage programs sponsored by the Federal Home Loan Banks.    	
(4) 	The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.     	
(5) 	The ratio of an insurer’s general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.    	
(6) 	Certain states limit a private mortgage insurer’s risk in-force to 25 times the total of the insurer’s policyholders’ surplus plus the statutory contingency reserve, commonly known as the “risk to capital” requirement. The current period risk to capital ratio is an estimate due to the timing of the filing of statutory statements and is prepared consistent with the presentation of the statutory financial statements in the combined annual statement of the U.S. mortgage insurance business.    	
(7) 	The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. The current period PMIERs sufficiency ratio is an estimate due to the timing of the PMIERs filing for the U.S. mortgage insurance business. As of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, the PMIERs sufficiency ratios were in excess of $1.2 billion, $1.1 billion, $1.0 billion, $850 million, $650 million and $600 million, respectively, of available assets above the PMIERs requirements.    	
 
18

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Loss Metrics—U.S. Mortgage Insurance Segment
(amounts in millions)

 	  	2020	 	 	2019	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Paid claims	  			 	  				 				 				 				 				 				 				
Flow	  			 	  				 				 				 				 				 				 				
Direct	  	$	18	 	  	$	20	 	 	$	38	 	 	$	22	 	 	$	28	 	 	$	24	 	 	$	30	 	 	$	104	 	
Assumed(1)	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Ceded	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Loss adjustment expenses	  	 	1	 	  	 	2	 	 	 	3	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	7	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Flow	  	 	19	 	  	 	22	 	 	 	41	 	 	 	24	 	 	 	29	 	 	 	26	 	 	 	32	 	 	 	111	 	
Bulk	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	  	 	19	 	  	 	22	 	 	 	41	 	 	 	25	 	 	 	29	 	 	 	26	 	 	 	32	 	 	 	112	 	
Pool	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	1	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Paid Claims	  	$	19	 	  	$	22	 	 	$	41	 	 	$	25	 	 	$	30	 	 	$	26	 	 	$	32	 	 	$	113	 	

Average Paid Claim (in thousands)	  	$	47.1	 	  	$	45.0	 	 				 	$	39.2	 	 	$	44.2	 	 	$	45.4	 	 	$	49.0	 	 				
	 								
Average Reserve Per Delinquency (in thousands)	  			 	  				 				 				 				 				 				 				
Flow	  	$	8.1	 	  	$	14.8	 	 				 	$	14.1	 	 	$	15.5	 	 	$	16.5	 	 	$	17.4	 	 				
Bulk loans with established reserve	  	$	11.3	 	  	$	12.4	 	 				 	$	13.4	 	 	$	13.3	 	 	$	14.1	 	 	$	13.8	 	 				
	 								
Reserves:	  			 	  				 				 				 				 				 				 				
Flow direct case	  	$	378	 	  	$	201	 	 				 	$	204	 	 	$	216	 	 	$	222	 	 	$	246	 	 				
Bulk direct case	  	 	4	 	  	 	4	 	 				 	 	4	 	 	 	4	 	 	 	4	 	 	 	4	 	 				
Assumed(1)	  	 	1	 	  	 	1	 	 				 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 				
All other(2)	  	 	56	 	  	 	24	 	 				 	 	24	 	 	 	26	 	 	 	27	 	 	 	29	 	 				
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Reserves	  	$	439	 	  	$	230	 	 				 	$	233	 	 	$	247	 	 	$	254	 	 	$	280	 	 				

Beginning Reserves	  	$	230	 	  	$	233	 	 	$	233	 	 	$	247	 	 	$	254	 	 	$	280	 	 	$	296	 	 	$	296	 	
Paid claims	  	 	(19	) 	  	 	(22	) 	 	 	(41	) 	 	 	(25	) 	 	 	(30	) 	 	 	(26	) 	 	 	(32	) 	 	 	(113	) 	
Increase (decrease) in reserves	  	 	228	 	  	 	19	 	 	 	247	 	 	 	11	 	 	 	23	 	 	 	—  	 	 	 	16	 	 	 	50	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending Reserves	  	$	439	 	  	$	230	 	 	$	439	 	 	$	233	 	 	$	247	 	 	$	254	 	 	$	280	 	 	$	233	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss Ratio(3)	  	 	94	% 	  	 	8	% 	 	 	53	% 	 	 	4	% 	 	 	11	% 	 	 	-	% 	 	 	8	% 	 	 	6	% 	
The loss ratio included above was calculated using whole dollars and may be different than the ratio calculated using the rounded numbers included herein.    

(1) 	Assumed is comprised of reinsurance arrangements with state governmental housing finance agencies.    	
(2) 	Other includes loss adjustment expenses, pool and incurred but not reported reserves.    	
(3) 	The ratio of benefits and other changes in policy reserves to net earned premiums. The company recorded a favorable reserve adjustment of $13 million and a favorable adjustment to net earned premiums of $14 million in the fourth quarter of 2019, which reduced the loss ratio by six percentage points for the three months ended December 31, 2019. The company also recorded a favorable reserve adjustment of $10 million in the second quarter of 2019, which reduced the loss ratio by five percentage points for the three months ended June 30, 2019. These adjustments reduced the loss ratio by three percentage points for the twelve months ended December 31, 2019.    	
 
19

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Delinquency Metrics—U.S. Mortgage Insurance Segment
(dollar amounts in millions)

 	  	2020	 	 	2019	 		
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	      3Q      	 	 	      2Q      	 	 	      1Q      	 	 	Total	 		
Number of Primary Delinquencies	  			 	  				 				 				 				 				 				 					
Flow	  	 	53,372	 	  	 	15,246	 	 				 	 	16,209	 	 	 	15,575	 	 	 	15,070	 	 	 	15,764	 	 					
Bulk loans with an established reserve	  	 	422	 	  	 	345	 	 				 	 	348	 	 	 	375	 	 	 	347	 	 	 	360	 	 					
Bulk loans with no reserve(1)	  	 	100	 	  	 	57	 	 				 	 	50	 	 	 	55	 	 	 	65	 	 	 	82	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total Number of Primary Delinquencies	  	 	53,894	 	  	 	15,648	 	 				 	 	16,607	 	 	 	16,005	 	 	 	15,482	 	 	 	16,206	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Beginning Number of Primary Delinquencies	  	 	15,648	 	  	 	16,607	 	 	 	16,607	 	 	 	16,005	 	 	 	15,482	 	 	 	16,206	 	 	 	17,159	 	 	 	17,159	 		
New delinquencies	  	 	48,557	 	  	 	8,214	 	 	 	56,771	 	 	 	8,738	 	 	 	8,650	 	 	 	7,705	 	 	 	8,539	 	 	 	33,632	 		
Delinquency cures	  	 	(9,890	) 	  	 	(8,699	) 	 	 	(18,589	) 	 	 	(7,526	) 	 	 	(7,451	) 	 	 	(7,872	) 	 	 	(8,835	) 	 	 	(31,684	) 		
Paid claims	  	 	(421	) 	  	 	(474	) 	 	 	(895	) 	 	 	(610	) 	 	 	(676	) 	 	 	(557	) 	 	 	(657	) 	 	 	(2,500	) 		
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Ending Number of Primary Delinquencies	  	 	53,894	 	  	 	15,648	 	 	 	53,894	 	 	 	16,607	 	 	 	16,005	 	 	 	15,482	 	 	 	16,206	 	 	 	16,607	 		
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Composition of Cures	  			 	  				 				 				 				 				 				 					
Reported delinquent and cured-intraquarter	  	 	4,012	 	  	 	2,228	 	 				 	 	1,681	 	 	 	1,803	 	 	 	1,621	 	 	 	2,342	 	 					
Number of missed payments delinquent prior to cure:	  			 	  				 				 				 				 				 				 					
3 payments or less	  	 	4,588	 	  	 	4,901	 	 				 	 	4,457	 	 	 	4,280	 	 	 	4,567	 	 	 	4,862	 	 					
4 - 11 payments	  	 	1,128	 	  	 	1,393	 	 				 	 	1,179	 	 	 	1,132	 	 	 	1,434	 	 	 	1,345	 	 					
12 payments or more	  	 	162	 	  	 	177	 	 				 	 	209	 	 	 	236	 	 	 	250	 	 	 	286	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	 	9,890	 	  	 	8,699	 	 				 	 	7,526	 	 	 	7,451	 	 	 	7,872	 	 	 	8,835	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Primary Delinquencies by Missed Payment Status	  			 	  				 				 				 				 				 				 					
3 payments or less	  	 	43,323	 	  	 	7,757	 	 				 	 	8,703	 	 	 	8,398	 	 	 	7,807	 	 	 	7,873	 	 					
4 - 11 payments	  	 	7,507	 	  	 	4,953	 	 				 	 	4,919	 	 	 	4,411	 	 	 	4,243	 	 	 	4,755	 	 					
12 payments or more	  	 	3,064	 	  	 	2,938	 	 				 	 	2,985	 	 	 	3,196	 	 	 	3,432	 	 	 	3,578	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Primary Delinquencies	  	 	53,894	 	  	 	15,648	 	 				 	 	16,607	 	 	 	16,005	 	 	 	15,482	 	 	 	16,206	 	 					

							
 	  	June 30, 2020	 	 	 	 	 	 	 	 	 	 	 	 	 		
Flow Delinquencies and Percentage	
Reserved by Payment Status	  	Delinquencies	 	  	Direct Case
Reserves(2)	 	 	Risk
In-Force	 	 	Reserves as % of
Risk In-Force	 	 	 	 	 	 	 	 	 	 	 	 	 	
3 payments or less in default	  	 	43,044	 	  	$	162	 	 	$	2,687	 	 	 	6	% 	 				 				 				 					
4 - 11 payments in default	  	 	7,404	 	  	 	111	 	 	 	388	 	 	 	29	% 	 				 				 				 					
12 payments or more in default	  	 	2,924	 	  	 	105	 	 	 	147	 	 	 	71	% 	 				 				 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 				 				 				 					
Total	  	 	53,372	 	  	$	378	 	 	$	3,222	 	 	 	12	% 	 				 				 				 					

 	  	December 31, 2019	 	 	 	 	 	 	 	 	 	 	 	 	 		
Flow Delinquencies and Percentage	
Reserved by Payment Status	  	Delinquencies	 	  	Direct Case
Reserves(2)	 	 	Risk
In-Force	 	 	Reserves as % of
Risk In-Force	 	 	 	 	 	 	 	 	 	 	 	 	 	
3 payments or less in default	  	 	8,524	 	  	$	27	 	 	$	386	 	 	 	7	% 	 				 				 				 					
4 - 11 payments in default	  	 	4,836	 	  	 	78	 	 	 	224	 	 	 	35	% 	 				 				 				 					
12 payments or more in default	  	 	2,849	 	  	 	99	 	 	 	145	 	 	 	68	% 	 				 				 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 				 				 				 					
Total	  	 	16,209	 	  	$	204	 	 	$	755	 	 	 	27	% 	 				 				 				 					

(1) 	Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes they currently have no risk for claim.	
(2) 	Direct flow case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.	
 
20

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

 	  	2020	 	  	2019	 	
 	  	2Q	 	  	1Q	 	  	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	
Primary Loans	  			 	  				  				 				 				 				
Primary loans in-force	  	 	904,753	 	  	 	876,912	 	  	 	860,214	 	 	 	842,692	 	 	 	818,358	 	 	 	792,800	 	
Primary delinquent loans	  	 	53,894	 	  	 	15,648	 	  	 	16,607	 	 	 	16,005	 	 	 	15,482	 	 	 	16,206	 	
Primary delinquency rate	  	 	5.96	% 	  	 	1.78	% 	  	 	1.93	% 	 	 	1.90	% 	 	 	1.89	% 	 	 	2.04	% 	
	 						
Flow loans in-force	  	 	894,715	 	  	 	866,562	 	  	 	849,472	 	 	 	831,586	 	 	 	806,739	 	 	 	780,733	 	
Flow delinquent loans	  	 	53,372	 	  	 	15,246	 	  	 	16,209	 	 	 	15,575	 	 	 	15,070	 	 	 	15,764	 	
Flow delinquency rate	  	 	5.97	% 	  	 	1.76	% 	  	 	1.91	% 	 	 	1.87	% 	 	 	1.87	% 	 	 	2.02	% 	
	 						
Bulk loans in-force	  	 	10,038	 	  	 	10,350	 	  	 	10,742	 	 	 	11,106	 	 	 	11,619	 	 	 	12,067	 	
Bulk delinquent loans	  	 	522	 	  	 	402	 	  	 	398	 	 	 	430	 	 	 	412	 	 	 	442	 	
Bulk delinquency rate	  	 	5.20	% 	  	 	3.88	% 	  	 	3.71	% 	 	 	3.87	% 	 	 	3.55	% 	 	 	3.66	% 	
	 						
A minus and sub-prime loans in-force	  	 	11,712	 	  	 	12,243	 	  	 	12,792	 	 	 	13,450	 	 	 	14,180	 	 	 	14,712	 	
A minus and sub-prime delinquent loans	  	 	2,470	 	  	 	2,077	 	  	 	2,283	 	 	 	2,339	 	 	 	2,367	 	 	 	2,530	 	
A minus and sub-prime delinquency rate	  	 	21.09	% 	  	 	16.96	% 	  	 	17.85	% 	 	 	17.39	% 	 	 	16.69	% 	 	 	17.20	% 	
	 						
Pool Loans	  			 	  				  				 				 				 				
Pool loans in-force	  	 	3,818	 	  	 	4,071	 	  	 	4,122	 	 	 	4,261	 	 	 	4,331	 	 	 	4,470	 	
Pool delinquent loans	  	 	151	 	  	 	132	 	  	 	167	 	 	 	168	 	 	 	177	 	 	 	187	 	
Pool delinquency rate	  	 	3.95	% 	  	 	3.24	% 	  	 	4.05	% 	 	 	3.94	% 	 	 	4.09	% 	 	 	4.18	% 	
	 						
Primary Risk In-Force by Credit Quality	  			 	  				  				 				 				 				
Over 735	  	 	58	% 	  	 	58	% 	  	 	57	% 	 	 	57	% 	 	 	57	% 	 	 	57	% 	
680-735	  	 	33	% 	  	 	33	% 	  	 	33	% 	 	 	33	% 	 	 	32	% 	 	 	32	% 	
660-679(1)	  	 	4	% 	  	 	4	% 	  	 	5	% 	 	 	5	% 	 	 	5	% 	 	 	5	% 	
620-659	  	 	4	% 	  	 	4	% 	  	 	4	% 	 	 	4	% 	 	 	5	% 	 	 	5	% 	
<620	  	 	1	% 	  	 	1	% 	  	 	1	% 	 	 	1	% 	 	 	1	% 	 	 	1	% 	

(1) 	Loans with unknown FICO scores are included in the 660-679 category.    	
 
21

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Portfolio Quality Metrics—U.S. Mortgage Insurance Segment
(amounts in millions)

 	  	June 30, 2020	 		
	Policy Year	  	Average
Rate(1)	 	 	% of Total
Reserves(2)	 	 	Primary Insurance
In-Force	 	  	% of Total	 	 	Primary Risk
In-Force	 	  	% of Total	 	 	Delinquency
Rate	 	
2004 and prior	  	 	6.15	% 	 	 	4.2	% 	 	$	1,241	 	  	 	0.6	% 	 	$	231	 	  	 	0.5	% 	 	 	13.55	% 		
2005 to 2008	  	 	5.47	% 	 	 	30.2	 	 	 	14,017	 	  	 	6.8	 	 	 	3,193	 	  	 	6.4	 	 	 	13.20	% 		
2009 to 2013	  	 	4.23	% 	 	 	2.7	 	 	 	5,461	 	  	 	2.6	 	 	 	1,267	 	  	 	2.5	 	 	 	4.55	% 		
2014	  	 	4.46	% 	 	 	3.1	 	 	 	5,719	 	  	 	2.8	 	 	 	1,367	 	  	 	2.7	 	 	 	5.59	% 		
2015	  	 	4.16	% 	 	 	5.1	 	 	 	11,858	 	  	 	5.7	 	 	 	2,843	 	  	 	5.7	 	 	 	5.51	% 		
2016	  	 	3.89	% 	 	 	9.2	 	 	 	22,566	 	  	 	10.9	 	 	 	5,415	 	  	 	10.8	 	 	 	5.67	% 		
2017	  	 	4.25	% 	 	 	11.5	 	 	 	23,845	 	  	 	11.5	 	 	 	5,752	 	  	 	11.5	 	 	 	6.55	% 		
2018	  	 	4.77	% 	 	 	12.9	 	 	 	24,767	 	  	 	11.9	 	 	 	5,975	 	  	 	12.0	 	 	 	7.29	% 		
2019	  	 	4.25	% 	 	 	18.4	 	 	 	52,068	 	  	 	25.1	 	 	 	12,690	 	  	 	25.4	 	 	 	5.77	% 		
2020	  	 	3.58	% 	 	 	2.7	 	 	 	45,816	 	  	 	22.1	 	 	 	11,253	 	  	 	22.5	 	 	 	1.47	% 		
	  				 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 					
Total	  	 	4.29	% 	 	 	100.0	% 	 	$	207,358	 	  	 	100.0	% 	 	$	49,986	 	  	 	100.0	% 	 	 	5.96	% 		

 	  	June 30, 2020	 	 	March 31, 2020	 	 	June 30, 2019	 	 	 	 		
 	  	Primary Risk
In-Force	 	 	Primary
Delinquency
Rate	 	 	Primary Risk
In-Force	 	  	Primary
Delinquency
Rate	 	 	Primary Risk
In-Force	 	  	Primary
Delinquency
Rate	 	 	 	 		
Lender concentration (by original applicant)	  	$	49,986	 	 	 	5.96	% 	 	$	47,866	 	  	 	1.78	% 	 	$	43,084	 	  	 	1.89	% 	 					
Top 10 lenders	  	$	15,803	 	 	 	6.62	% 	 	$	15,099	 	  	 	1.82	% 	 	$	12,597	 	  	 	2.11	% 	 					
Top 20 lenders	  	$	20,264	 	 	 	6.53	% 	 	$	19,410	 	  	 	1.75	% 	 	$	16,729	 	  	 	2.03	% 	 					
									
Loan-to-value ratio	  				 				 				  				 				  				 					
95.01% and above	  	$	8,789	 	 	 	7.43	% 	 	$	8,482	 	  	 	2.00	% 	 	$	7,837	 	  	 	3.16	% 	 					
90.01% to 95.00%	  	 	25,690	 	 	 	5.85	% 	 	 	24,707	 	  	 	1.50	% 	 	 	22,389	 	  	 	1.49	% 	 					
80.01% to 90.00%	  	 	15,378	 	 	 	5.26	% 	 	 	14,540	 	  	 	1.37	% 	 	 	12,699	 	  	 	1.59	% 	 					
80.00% and below	  	 	129	 	 	 	3.80	% 	 	 	137	 	  	 	2.42	% 	 	 	159	 	  	 	2.43	% 	 					
	  	 	 	 	 				 	 	 	 	  				 	 	 	 	  				 					
Total	  	$	49,986	 	 	 	5.96	% 	 	$	47,866	 	  	 	1.78	% 	 	$	43,084	 	  	 	1.89	% 	 					
	  	 	 	 	 				 	 	 	 	  				 	 	 	 	  				 					
Loan grade	  				 				 				  				 				  				 					
Prime	  	$	49,572	 	 	 	5.76	% 	 	$	47,433	 	  	 	1.57	% 	 	$	42,587	 	  	 	1.63	% 	 					
A minus and sub-prime	  	 	414	 	 	 	21.09	% 	 	 	433	 	  	 	16.96	% 	 	 	497	 	  	 	16.69	% 	 					
	  	 	 	 	 				 	 	 	 	  				 	 	 	 	  				 					
Total	  	$	49,986	 	 	 	5.96	% 	 	$	47,866	 	  	 	1.78	% 	 	$	43,084	 	  	 	1.89	% 	 					

(1) 	Average Annual Mortgage Interest Rate.    	
(2) 	Total reserves were $439 million as of June 30, 2020.         	
 
22

 
Australia Mortgage Insurance Segment

23

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Adjusted Operating Income and Sales—Australia Mortgage Insurance Segment
(amounts in millions)

 	  	2020	 	 	2019	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				
Premiums	  	$	62	 	  	$	69	 	 	$	131	 	 	$	72	 	 	$	77	 	 	$	80	 	 	$	83	 	 	$	312	 	
Net investment income	  	 	8	 	  	 	10	 	 	 	18	 	 	 	11	 	 	 	13	 	 	 	15	 	 	 	16	 	 	 	55	 	
Net investment gains (losses)	  	 	66	 	  	 	(53	) 	 	 	13	 	 	 	19	 	 	 	(9	) 	 	 	1	 	 	 	12	 	 	 	23	 	
Policy fees and other income	  	 	—  	 	  	 	1	 	 	 	1	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	136	 	  	 	27	 	 	 	163	 	 	 	102	 	 	 	82	 	 	 	96	 	 	 	110	 	 	 	390	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	39	 	  	 	24	 	 	 	63	 	 	 	22	 	 	 	28	 	 	 	26	 	 	 	28	 	 	 	104	 	
Acquisition and operating expenses, net of deferrals	  	 	18	 	  	 	17	 	 	 	35	 	 	 	18	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	69	 	
Amortization of deferred acquisition costs and intangibles	  	 	6	 	  	 	8	 	 	 	14	 	 	 	6	 	 	 	9	 	 	 	9	 	 	 	9	 	 	 	33	 	
Goodwill impairment	  	 	5	 	  	 	—  	 	 	 	5	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Interest expense	  	 	2	 	  	 	1	 	 	 	3	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	8	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	70	 	  	 	50	 	 	 	120	 	 	 	48	 	 	 	56	 	 	 	54	 	 	 	56	 	 	 	214	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	66	 	  	 	(23	) 	 	 	43	 	 	 	54	 	 	 	26	 	 	 	42	 	 	 	54	 	 	 	176	 	
Provision (benefit) for income taxes	  	 	20	 	  	 	(7	) 	 	 	13	 	 	 	16	 	 	 	8	 	 	 	13	 	 	 	16	 	 	 	53	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	46	 	  	 	(16	) 	 	 	30	 	 	 	38	 	 	 	18	 	 	 	29	 	 	 	38	 	 	 	123	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	23	 	  	 	(6	) 	 	 	17	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	 	23	 	  	 	(10	) 	 	 	13	 	 	 	19	 	 	 	8	 	 	 	14	 	 	 	18	 	 	 	59	 	
	 								
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:	  			 	  				 				 				 				 				 				 				
Net investment (gains) losses, net(1)	  	 	(34	) 	  	 	27	 	 	 	(7	) 	 	 	(10	) 	 	 	5	 	 	 	(1	) 	 	 	(6	) 	 	 	(12	) 	
Goodwill impairment, net(2)	  	 	3	 	  	 	—  	 	 	 	3	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Taxes on adjustments	  	 	9	 	  	 	(8	) 	 	 	1	 	 	 	3	 	 	 	(1	) 	 	 	—  	 	 	 	2	 	 	 	4	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME(3)	  	$	1	 	  	$	9	 	 	$	10	 	 	$	12	 	 	$	12	 	 	$	13	 	 	$	14	 	 	$	51	 	

SALES:	  				  				 				 				 				 				 				 				
New Insurance Written (NIW)	  				  				 				 				 				 				 				 				
Flow	  	$	4,400	 	  	$	4,100	 	 	$	8,500	 	 	$	4,900	 	 	$	4,600	 	 	$	3,700	 	 	$	3,400	 	 	$	16,600	 	
Bulk	  	 	100	 	  	 	200	 	 	 	300	 	 	 	400	 	 	 	—  	 	 	 	1,200	 	 	 	500	 	 	 	2,100	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Australia NIW(4),(5)	  	$	4,500	 	  	$	4,300	 	 	$	8,800	 	 	$	5,300	 	 	$	4,600	 	 	$	4,900	 	 	$	3,900	 	 	$	18,700	 	

 
(1)  Net investment (gains) losses were adjusted for the portion of net investment gains (losses) attributable to noncontrolling interests as reconciled below:	   	 				 				
									
Net investment (gains) losses, gross	  	$	(66	) 	  	$	53	 	 	$	(13	) 	 	$	(19	) 	 	$	9	 	 	$	(1	) 	 	$	(12	) 	 	$	(23	) 	
Adjustment for net investment gains (losses) attributable to noncontrolling interests	  	 	32	 	  	 	(26	) 	 	 	6	 	 	 	9	 	 	 	(4	) 	 	 	—  	 	 	 	6	 	 	 	11	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment (gains) losses, net	  	$	(34	) 	  	$	27	 	 	$	(7	) 	 	$	(10	) 	 	$	5	 	 	$	(1	) 	 	$	(6	) 	 	$	(12	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(2) 	For the three and six months ended June 30, 2020, goodwill impairment was adjusted by $2 million for the portion attributable to noncontrolling interests.	
(3) 	Adjusted operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $1 million and $11 million for the three and six months ended June 30, 2020, respectively.	
(4) 	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $5,000 million and $9,500 million for the three and six months ended June 30, 2020, respectively.	
(5) 	The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The new insurance written associated with these arrangements is excluded from these metrics.	
 
24

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Selected Key Performance Measures—Australia Mortgage Insurance Segment
(amounts in millions)

 	  	2020	 	 	2019	 		
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 		
Net Premiums Written	  	$	70	 	  	$	62	 	 	$	132	 	 	$	92	 	 	$	70	 	 	$	58	 	 	$	52	 	 	$	272	 		
Loss Ratio(1)	  	 	63	% 	  	 	34	% 	 	 	48	% 	 	 	30	% 	 	 	36	% 	 	 	34	% 	 	 	34	% 	 	 	33	% 		
Expense Ratio (Net Earned Premiums)(2)	  	 	47	% 	  	 	36	% 	 	 	41	% 	 	 	34	% 	 	 	34	% 	 	 	33	% 	 	 	31	% 	 	 	33	% 		
Expense Ratio (Net Premiums Written)(3)	  	 	41	% 	  	 	40	% 	 	 	41	% 	 	 	26	% 	 	 	38	% 	 	 	44	% 	 	 	50	% 	 	 	38	% 		
	 									
Primary Insurance In-Force(4)	  	$	210,200	 	  	$	188,400	 	 				 	$	215,700	 	 	$	206,400	 	 	$	215,600	 	 	$	219,200	 	 					
Primary Risk In-Force(4),(5)	  			 	  				 				 				 				 				 				 					
Flow	  	$	67,700	 	  	$	60,700	 	 				 	$	69,400	 	 	$	66,400	 	 	$	69,100	 	 	$	70,600	 	 					
Bulk	  	 	5,500	 	  	 	5,000	 	 				 	 	5,700	 	 	 	5,500	 	 	 	6,000	 	 	 	5,700	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	$	73,200	 	  	$	65,700	 	 				 	$	75,100	 	 	$	71,900	 	 	$	75,100	 	 	$	76,300	 	 					

						
 	  	June 30, 2020	 	 	 	 	 	March 31, 2020	 	 	 	 		
	Risk In-Force by Loan-To-Value Ratio(4),(6)	  	Primary	 	  	Flow	 	 	Bulk	 	 	 	 	 	Primary	 	 	Flow	 	 	Bulk	 	 	 	 	
95.01% and above	  	$	9,613	 	  	$	9,613	 	 	$	—  	 	 				 	$	8,669	 	 	$	8,669	 	 	$	—  	 	 					
90.01% to 95.00%	  	 	21,066	 	  	 	21,057	 	 	 	9	 	 				 	 	18,719	 	 	 	18,711	 	 	 	8	 	 					
80.01% to 90.00%	  	 	23,481	 	  	 	23,403	 	 	 	78	 	 				 	 	20,899	 	 	 	20,828	 	 	 	71	 	 					
80.00% and below	  	 	19,060	 	  	 	13,675	 	 	 	5,385	 	 				 	 	17,363	 	 	 	12,517	 	 	 	4,846	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	$	73,220	 	  	$	67,748	 	 	$	5,472	 	 				 	$	65,650	 	 	$	60,725	 	 	$	4,925	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 					
The loss and expense ratios included above were calculated using whole dollars and may be different than the ratios calculated using the rounded numbers included herein.

(1) 	The ratio of benefits and other changes in policy reserves to net earned premiums.	
(2) 	The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.	
(3) 	The ratio of an insurer’s general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.	
(4) 	The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The insurance in-force and risk in-force associated with these arrangements are excluded from these metrics. The risk in-force on these transactions was approximately $162 million, $143 million, $162 million, $152 million, $157 million and $157 million as of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, respectively.	
(5) 	The business currently provides 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Australia has computed an “effective risk in-force” amount which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents the highest expected average per-claim payment for any one underwriting year over the life of the business. This factor was 35% for all periods presented. Australia also has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor.	
(6) 	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.	
 
25

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Selected Key Performance Measures—Australia Mortgage Insurance Segment
(dollar amounts in millions)

	Primary Insurance(1)	  	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 2019	 	 	September 30, 2019	 	 	June 30, 2019	 	 	 	 	
Insured loans in-force	  	 	1,236,657	 	 	 	1,284,120	 	 	 	1,290,216	 	 	 	1,293,961	 	 	 	1,308,811	 	 					
Insured delinquent loans	  	 	7,614	 	 	 	7,274	 	 	 	7,221	 	 	 	7,713	 	 	 	7,891	 	 					
Insured delinquency rate	  	 	0.62	% 	 	 	0.57	% 	 	 	0.56	% 	 	 	0.60	% 	 	 	0.60	% 	 					
								
Flow loans in-force	  	 	1,137,784	 	 	 	1,183,889	 	 	 	1,189,019	 	 	 	1,192,282	 	 	 	1,200,603	 	 					
Flow delinquent loans	  	 	7,380	 	 	 	7,055	 	 	 	7,003	 	 	 	7,469	 	 	 	7,642	 	 					
Flow delinquency rate	  	 	0.65	% 	 	 	0.60	% 	 	 	0.59	% 	 	 	0.63	% 	 	 	0.64	% 	 					
								
Bulk loans in-force	  	 	98,873	 	 	 	100,231	 	 	 	101,197	 	 	 	101,679	 	 	 	108,208	 	 					
Bulk delinquent loans	  	 	234	 	 	 	219	 	 	 	218	 	 	 	244	 	 	 	249	 	 					
Bulk delinquency rate	  	 	0.24	% 	 	 	0.22	% 	 	 	0.22	% 	 	 	0.24	% 	 	 	0.23	% 	 					
								
	Loss Metrics	  	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 2019	 	 	September 30, 2019	 	 	June 30, 2019	 	 	 	 	
Beginning Reserves	  	$	184	 	 	$	208	 	 	$	204	 	 	$	209	 	 	$	204	 	 					
Paid claims(2)	  	 	(22	) 	 	 	(21	) 	 	 	(25	) 	 	 	(24	) 	 	 	(20	) 	 					
Increase in reserves	  	 	39	 	 	 	24	 	 	 	22	 	 	 	27	 	 	 	27	 	 					
Impact of changes in foreign exchange rates	  	 	25	 	 	 	(27	) 	 	 	7	 	 	 	(8	) 	 	 	(2	) 	 					
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Ending Reserves	  	$	226	 	 	$	184	 	 	$	208	 	 	$	204	 	 	$	209	 	 					

 	  	June 30, 2020	 	 	March 31, 2020	 	 	June 30, 2019	 		
	State and Territory(1)	  	% of Primary
Risk In-Force	 	 	Primary
Delinquency Rate	 	 	% of Primary
Risk In-Force	 	 	Primary
Delinquency Rate	 	 	% of Primary
Risk In-Force	 	 	Primary
Delinquency Rate	 	
New South Wales	  	 	27	% 	 	 	0.51	% 	 	 	27	% 	 	 	0.44	% 	 	 	27	% 	 	 	0.45	% 		
Queensland	  	 	23	 	 	 	0.78	% 	 	 	23	 	 	 	0.75	% 	 	 	23	 	 	 	0.81	% 		
Victoria	  	 	23	 	 	 	0.46	% 	 	 	23	 	 	 	0.42	% 	 	 	23	 	 	 	0.45	% 		
Western Australia	  	 	13	 	 	 	1.06	% 	 	 	13	 	 	 	1.00	% 	 	 	13	 	 	 	1.10	% 		
South Australia	  	 	6	 	 	 	0.70	% 	 	 	6	 	 	 	0.67	% 	 	 	6	 	 	 	0.68	% 		
Australian Capital Territory	  	 	3	 	 	 	0.27	% 	 	 	3	 	 	 	0.25	% 	 	 	3	 	 	 	0.25	% 		
Tasmania	  	 	2	 	 	 	0.27	% 	 	 	2	 	 	 	0.30	% 	 	 	2	 	 	 	0.31	% 		
New Zealand	  	 	2	 	 	 	0.03	% 	 	 	2	 	 	 	0.02	% 	 	 	2	 	 	 	0.02	% 		
Northern Territory	  	 	1	 	 	 	0.87	% 	 	 	1	 	 	 	0.83	% 	 	 	1	 	 	 	0.83	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.62	% 	 	 	100	% 	 	 	0.57	% 	 	 	100	% 	 	 	0.60	% 		

	By Policy Year(1)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
2011 and prior	  	 	44	% 	 	 	0.55	% 	 	 	46	% 	 	 	0.50	% 	 	 	48	% 	 	 	            0.54	% 		
2012	  	 	5	 	 	 	1.01	% 	 	 	5	 	 	 	0.93	% 	 	 	6	 	 	 	1.11	% 		
2013	  	 	6	 	 	 	1.12	% 	 	 	6	 	 	 	1.06	% 	 	 	7	 	 	 	1.10	% 		
2014	  	 	7	 	 	 	1.10	% 	 	 	7	 	 	 	1.05	% 	 	 	8	 	 	 	0.97	% 		
2015	  	 	7	 	 	 	0.89	% 	 	 	7	 	 	 	0.79	% 	 	 	7	 	 	 	0.82	% 		
2016	  	 	6	 	 	 	0.71	% 	 	 	6	 	 	 	0.64	% 	 	 	7	 	 	 	0.60	% 		
2017	  	 	6	 	 	 	0.57	% 	 	 	6	 	 	 	0.51	% 	 	 	7	 	 	 	0.36	% 		
2018	  	 	7	 	 	 	0.41	% 	 	 	7	 	 	 	0.35	% 	 	 	7	 	 	 	0.15	% 		
2019	  	 	8	 	 	 	0.10	% 	 	 	8	 	 	 	0.04	% 	 	 	3	 	 	 	0.01	% 		
2020	  	 	4	 	 	 	0.01	% 	 	 	2	 	 	 	—  	% 	 	 	—  	 	 	 	—  	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.62	% 	 	 	100	% 	 	 	0.57	% 	 	 	100	% 	 	 	0.60	% 		

(1) 	The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The loans in-force, including delinquent loans, and risk in-force associated with these arrangements are excluded from these metrics.    	
(2) 	Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims.    	
 
26

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Selected Key Performance Measures—Australia Mortgage Insurance Segment
(Australian dollar amounts in millions)

 	  	2020	 	  	2019	 	
 	  	2Q	 	  	1Q	 	 	Total	 	  	4Q	 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Paid Claims(1)	  			 	  				 				  				  				 				 				 				
Flow	  	$	35	 	  	$	31	 	 	$	66	 	  	$	37	 	  	$	35	 	 	$	28	 	 	$	30	 	 	$	130	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Paid Claims	  	$	35	 	  	$	31	 	 	$	66	 	  	$	37	 	  	$	35	 	 	$	28	 	 	$	30	 	 	$	130	 	

Average Paid Claim (in thousands)	  	$	97.0	 	  	$	92.7	 	 				  	$	99.4	 	  	$	97.9	 	 	$	94.1	 	 	$	94.2	 	 				
	 								
Average Reserve Per Delinquency (in thousands)	  	$	43.0	 	  	$	41.3	 	 				  	$	41.1	 	  	$	39.2	 	 	$	37.8	 	 	$	38.4	 	 				
	 								
Loss Metrics	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Beginning Reserves	  	$	301	 	  	$	297	 	 	$	297	 	  	$	302	 	  	$	298	 	 	$	288	 	 	$	279	 	 	$	279	 	
Paid claims(1)	  	 	(35	) 	  	 	(31	) 	 	 	(66	) 	  	 	(37	) 	  	 	(35	) 	 	 	(28	) 	 	 	(30	) 	 	 	(130	) 	
Increase in reserves	  	 	62	 	  	 	35	 	 	 	97	 	  	 	32	 	  	 	39	 	 	 	38	 	 	 	39	 	 	 	148	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending Reserves	  	$	328	 	  	$	301	 	 	$	328	 	  	$	297	 	  	$	302	 	 	$	298	 	 	$	288	 	 	$	297	 	

Loan Amount(2),(3)	  			 	  				 				  				  				 				 				 				
Over $550K	  	 	21	% 	  	 	20	% 	 				  	 	19	% 	  	 	19	% 	 	 	19	% 	 	 	18	% 	 				
$400K to $550K	  	 	22	 	  	 	22	 	 				  	 	22	 	  	 	22	 	 	 	21	 	 	 	21	 	 				
$250K to $400K	  	 	33	 	  	 	32	 	 				  	 	33	 	  	 	33	 	 	 	33	 	 	 	34	 	 				
$100K to $250K	  	 	20	 	  	 	21	 	 				  	 	21	 	  	 	21	 	 	 	22	 	 	 	22	 	 				
$100K or Less	  	 	4	 	  	 	5	 	 				  	 	5	 	  	 	5	 	 	 	5	 	 	 	5	 	 				
	  	 	 	 	  	 	 	 	 				  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 				
Total	  	 	100	% 	  	 	100	% 	 				  	 	100	% 	  	 	100	% 	 	 	100	% 	 	 	100	% 	 				

Average Primary Loan Size (in thousands)(3)	  	$	246	 	  	$	240	 	 				  	$	238	 	  	$	236	 	 	$	235	 	 	$	233	 	 				
All amounts presented in Australian dollars.

(1) 	Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims.    	
(2) 	The percentages in this table are based on the amount of primary insurance in-force in each loan band as a percentage of total insurance in-force.    	
(3) 	The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The loans in-force associated with these arrangements are excluded from these metrics.    	
 
27

U.S. Life Insurance Segment

 
28

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment
(amounts in millions)

 	  	2020	 	 	2019	 	
  	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				
Premiums	  	$	712	 	  	$	718	 	 	$	1,430	 	 	$	722	 	 	$	717	 	 	$	713	 	 	$	709	 	 	$	2,861	 	
Net investment income	  	 	692	 	  	 	695	 	 	 	1,387	 	 	 	705	 	 	 	722	 	 	 	724	 	 	 	701	 	 	 	2,852	 	
Net investment gains (losses)	  	 	118	 	  	 	(70	) 	 	 	48	 	 	 	23	 	 	 	11	 	 	 	(36	) 	 	 	84	 	 	 	82	 	
Policy fees and other income	  	 	142	 	  	 	144	 	 	 	286	 	 	 	153	 	 	 	152	 	 	 	187	 	 	 	151	 	 	 	643	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	1,664	 	  	 	1,487	 	 	 	3,151	 	 	 	1,603	 	 	 	1,602	 	 	 	1,588	 	 	 	1,645	 	 	 	6,438	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	1,213	 	  	 	1,297	 	 	 	2,510	 	 	 	1,307	 	 	 	1,225	 	 	 	1,211	 	 	 	1,236	 	 	 	4,979	 	
Interest credited	  	 	97	 	  	 	100	 	 	 	197	 	 	 	101	 	 	 	106	 	 	 	106	 	 	 	106	 	 	 	419	 	
Acquisition and operating expenses, net of deferrals	  	 	147	 	  	 	151	 	 	 	298	 	 	 	156	 	 	 	158	 	 	 	142	 	 	 	148	 	 	 	604	 	
Amortization of deferred acquisition costs and intangibles	  	 	83	 	  	 	87	 	 	 	170	 	 	 	150	 	 	 	89	 	 	 	67	 	 	 	66	 	 	 	372	 	
Interest expense	  	 	—  	 	  	 	5	 	 	 	5	 	 	 	4	 	 	 	4	 	 	 	4	 	 	 	5	 	 	 	17	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,540	 	  	 	1,640	 	 	 	3,180	 	 	 	1,718	 	 	 	1,582	 	 	 	1,530	 	 	 	1,561	 	 	 	6,391	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	124	 	  	 	(153	) 	 	 	(29	) 	 	 	(115	) 	 	 	20	 	 	 	58	 	 	 	84	 	 	 	47	 	
Provision (benefit) for income taxes	  	 	33	 	  	 	(27	) 	 	 	6	 	 	 	(19	) 	 	 	10	 	 	 	19	 	 	 	24	 	 	 	34	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	91	 	  	 	(126	) 	 	 	(35	) 	 	 	(96	) 	 	 	10	 	 	 	39	 	 	 	60	 	 	 	13	 	
	 								
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				 				 				 				 				 				 				
Net investment (gains) losses, net(1)	  	 	(121	) 	  	 	67	 	 	 	(54	) 	 	 	(24	) 	 	 	(14	) 	 	 	35	 	 	 	(86	) 	 	 	(89	) 	
Losses on early extinguishment of debt	  	 	—  	 	  	 	4	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Expenses related to restructuring	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	4	 	 	 	3	 	
Taxes on adjustments	  	 	25	 	  	 	(15	) 	 	 	10	 	 	 	5	 	 	 	3	 	 	 	(7	) 	 	 	17	 	 	 	18	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	(5	) 	  	$	(70	) 	 	$	(75	) 	 	$	(115	) 	 	$	(1	) 	 	$	66	 	 	$	(5	) 	 	$	(55	) 	

 
(1)  Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:	   	
Net investment (gains) losses, gross	  	$	(118	) 	  	$	70	 	 	$	(48	) 	 	$	(23	) 	 	$	(11	) 	 	$	36	 	 	$	(84	) 	 	$	(82	) 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	(3	) 	  	 	(3	) 	 	 	(6	) 	 	 	(1	) 	 	 	(3	) 	 	 	(1	) 	 	 	(2	) 	 	 	(7	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment (gains) losses, net	  	$	(121	) 	  	$	67	 	 	$	(54	) 	 	$	(24	) 	 	$	(14	) 	 	$	35	 	 	$	(86	) 	 	$	(89	) 	

29

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment—Long-Term Care Insurance
(amounts in millions)

 	  	2020	 	 	2019	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				
Premiums	  	$	649	 	  	$	642	 	 	$	1,291	 	 	$	663	 	 	$	652	 	 	$	640	 	 	$	628	 	 	$	2,583	 	
Net investment income	  	 	422	 	  	 	419	 	 	 	841	 	 	 	424	 	 	 	432	 	 	 	428	 	 	 	406	 	 	 	1,690	 	
Net investment gains (losses)	  	 	129	 	  	 	(55	) 	 	 	74	 	 	 	19	 	 	 	28	 	 	 	(15	) 	 	 	80	 	 	 	112	 	
Policy fees and other income	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(2	) 	 	 	2	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	1,200	 	  	 	1,006	 	 	 	2,206	 	 	 	1,106	 	 	 	1,110	 	 	 	1,055	 	 	 	1,114	 	 	 	4,385	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	876	 	  	 	928	 	 	 	1,804	 	 	 	925	 	 	 	916	 	 	 	896	 	 	 	927	 	 	 	3,664	 	
Interest credited	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Acquisition and operating expenses, net of deferrals	  	 	103	 	  	 	101	 	 	 	204	 	 	 	105	 	 	 	106	 	 	 	93	 	 	 	101	 	 	 	405	 	
Amortization of deferred acquisition costs and intangibles	  	 	21	 	  	 	24	 	 	 	45	 	 	 	25	 	 	 	25	 	 	 	26	 	 	 	25	 	 	 	101	 	
Interest expense	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,000	 	  	 	1,053	 	 	 	2,053	 	 	 	1,055	 	 	 	1,047	 	 	 	1,015	 	 	 	1,053	 	 	 	4,170	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	200	 	  	 	(47	) 	 	 	153	 	 	 	51	 	 	 	63	 	 	 	40	 	 	 	61	 	 	 	215	 	
Provision (benefit) for income taxes	  	 	49	 	  	 	(4	) 	 	 	45	 	 	 	17	 	 	 	19	 	 	 	15	 	 	 	19	 	 	 	70	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	151	 	  	 	(43	) 	 	 	108	 	 	 	34	 	 	 	44	 	 	 	25	 	 	 	42	 	 	 	145	 	
	 								
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				 				 				 				 				 				 				
Net investment (gains) losses	  	 	(129	) 	  	 	55	 	 	 	(74	) 	 	 	(19	) 	 	 	(28	) 	 	 	15	 	 	 	(80	) 	 	 	(112	) 	
Expenses related to restructuring	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	2	 	 	 	1	 	
Taxes on adjustments	  	 	26	 	  	 	(11	) 	 	 	15	 	 	 	4	 	 	 	5	 	 	 	(2	) 	 	 	16	 	 	 	23	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	48	 	  	$	1	 	 	$	49	 	 	$	19	 	 	$	21	 	 	$	37	 	 	$	(20	) 	 	$	57	 	

RATIOS:	  				  				 				 				 				 				 				 				
Loss Ratio(1)	  	 	69	% 	  	 	78	% 	 	 	74	% 	 	 	76	% 	 	 	76	% 	 	 	74	% 	 	 	81	% 	 	 	77	% 	
Gross Benefits Ratio(2)	  	 	135	% 	  	 	145	% 	 	 	140	% 	 	 	140	% 	 	 	140	% 	 	 	140	% 	 	 	148	% 	 	 	142	% 	

(1) 	The loss ratio was calculated by dividing benefits and other changes in policy reserves less tabular interest on reserves less loss adjustment expenses by net earned premiums.	
(2) 	The gross benefits ratio was calculated by dividing benefits and other changes in policy reserves by net earned premiums.	
 
30

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment—Life Insurance
(amounts in millions)

 	  	2020	 	  	2019	 	
 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				
Premiums	  	$	63	 	  	$	76	 	  	$	139	 	  	$	59	 	  	$	65	 	  	$	73	 	  	$	81	 	  	$	278	 	
Net investment income	  	 	127	 	  	 	130	 	  	 	257	 	  	 	128	 	  	 	133	 	  	 	130	 	  	 	133	 	  	 	524	 	
Net investment gains (losses)	  	 	5	 	  	 	1	 	  	 	6	 	  	 	6	 	  	 	(2	) 	  	 	(3	) 	  	 	10	 	  	 	11	 	
Policy fees and other income	  	 	140	 	  	 	141	 	  	 	281	 	  	 	150	 	  	 	151	 	  	 	182	 	  	 	148	 	  	 	631	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	335	 	  	 	348	 	  	 	683	 	  	 	343	 	  	 	347	 	  	 	382	 	  	 	372	 	  	 	1,444	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	289	 	  	 	302	 	  	 	591	 	  	 	335	 	  	 	228	 	  	 	244	 	  	 	242	 	  	 	1,049	 	
Interest credited	  	 	57	 	  	 	59	 	  	 	116	 	  	 	58	 	  	 	60	 	  	 	58	 	  	 	58	 	  	 	234	 	
Acquisition and operating expenses, net of deferrals	  	 	34	 	  	 	39	 	  	 	73	 	  	 	39	 	  	 	40	 	  	 	37	 	  	 	34	 	  	 	150	 	
Amortization of deferred acquisition costs and intangibles	  	 	53	 	  	 	44	 	  	 	97	 	  	 	109	 	  	 	50	 	  	 	28	 	  	 	27	 	  	 	214	 	
Interest expense	  	 	—  	 	  	 	5	 	  	 	5	 	  	 	4	 	  	 	4	 	  	 	4	 	  	 	5	 	  	 	17	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	433	 	  	 	449	 	  	 	882	 	  	 	545	 	  	 	382	 	  	 	371	 	  	 	366	 	  	 	1,664	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	(98	) 	  	 	(101	) 	  	 	(199	) 	  	 	(202	) 	  	 	(35	) 	  	 	11	 	  	 	6	 	  	 	(220	) 	
Provision (benefit) for income taxes	  	 	(21	) 	  	 	(22	) 	  	 	(43	) 	  	 	(43	) 	  	 	(8	) 	  	 	3	 	  	 	1	 	  	 	(47	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	(77	) 	  	 	(79	) 	  	 	(156	) 	  	 	(159	) 	  	 	(27	) 	  	 	8	 	  	 	5	 	  	 	(173	) 	
	 								
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				  				  				  				  				  				  				
Net investment (gains) losses	  	 	(5	) 	  	 	(1	) 	  	 	(6	) 	  	 	(6	) 	  	 	2	 	  	 	3	 	  	 	(10	) 	  	 	(11	) 	
Losses on early extinguishment of debt	  	 	—  	 	  	 	4	 	  	 	4	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Expenses related to restructuring	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	1	 	  	 	1	 	
Taxes on adjustments	  	 	1	 	  	 	(1	) 	  	 	—  	 	  	 	1	 	  	 	—  	 	  	 	(1	) 	  	 	2	 	  	 	2	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	(81	) 	  	$	(77	) 	  	$	(158	) 	  	$	(164	) 	  	$	(25	) 	  	$	10	 	  	$	(2	) 	  	$	(181	) 	

 
31

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Adjusted Operating Income—U.S. Life Insurance Segment—Fixed Annuities
(amounts in millions)

 	  	2020	 	  	2019	 	
 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				
Premiums	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Net investment income	  	 	143	 	  	 	146	 	  	 	289	 	  	 	153	 	  	 	157	 	  	 	166	 	  	 	162	 	  	 	638	 	
Net investment gains (losses)	  	 	(16	) 	  	 	(16	) 	  	 	(32	) 	  	 	(2	) 	  	 	(15	) 	  	 	(18	) 	  	 	(6	) 	  	 	(41	) 	
Policy fees and other income	  	 	2	 	  	 	3	 	  	 	5	 	  	 	3	 	  	 	3	 	  	 	3	 	  	 	3	 	  	 	12	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	129	 	  	 	133	 	  	 	262	 	  	 	154	 	  	 	145	 	  	 	151	 	  	 	159	 	  	 	609	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	48	 	  	 	67	 	  	 	115	 	  	 	47	 	  	 	81	 	  	 	71	 	  	 	67	 	  	 	266	 	
Interest credited	  	 	40	 	  	 	41	 	  	 	81	 	  	 	43	 	  	 	46	 	  	 	48	 	  	 	48	 	  	 	185	 	
Acquisition and operating expenses, net of deferrals	  	 	10	 	  	 	11	 	  	 	21	 	  	 	12	 	  	 	12	 	  	 	12	 	  	 	13	 	  	 	49	 	
Amortization of deferred acquisition costs and intangibles	  	 	9	 	  	 	19	 	  	 	28	 	  	 	16	 	  	 	14	 	  	 	13	 	  	 	14	 	  	 	57	 	
Interest expense	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	107	 	  	 	138	 	  	 	245	 	  	 	118	 	  	 	153	 	  	 	144	 	  	 	142	 	  	 	557	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	22	 	  	 	(5	) 	  	 	17	 	  	 	36	 	  	 	(8	) 	  	 	7	 	  	 	17	 	  	 	52	 	
Provision (benefit) for income taxes	  	 	5	 	  	 	(1	) 	  	 	4	 	  	 	7	 	  	 	(1	) 	  	 	1	 	  	 	4	 	  	 	11	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	17	 	  	 	(4	) 	  	 	13	 	  	 	29	 	  	 	(7	) 	  	 	6	 	  	 	13	 	  	 	41	 	
	 								
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				  				  				  				  				  				  				
Net investment (gains) losses, net(1)	  	 	13	 	  	 	13	 	  	 	26	 	  	 	1	 	  	 	12	 	  	 	17	 	  	 	4	 	  	 	34	 	
Expenses related to restructuring	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	1	 	  	 	1	 	
Taxes on adjustments	  	 	(2	) 	  	 	(3	) 	  	 	(5	) 	  	 	—  	 	  	 	(2	) 	  	 	(4	) 	  	 	(1	) 	  	 	(7	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME	  	$	28	 	  	$	6	 	  	$	34	 	  	$	30	 	  	$	3	 	  	$	19	 	  	$	17	 	  	$	69	 	

 
(1)  Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:	   	  				  				
Net investment (gains) losses, gross	  	$	16	 	  	$	16	 	  	$	32	 	  	$	2	 	  	$	15	 	  	$	18	 	  	$	6	 	  	$	41	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	(3	) 	  	 	(3	) 	  	 	(6	) 	  	 	(1	) 	  	 	(3	) 	  	 	(1	) 	  	 	(2	) 	  	 	(7	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net investment (gains) losses, net	  	$	13	 	  	$	13	 	  	$	26	 	  	$	1	 	  	$	12	 	  	$	17	 	  	$	4	 	  	$	34	 	

32

 
Runoff Segment

 
 
33

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Adjusted Operating Income (Loss)—Runoff Segment
(amounts in millions)

 	  	2020	 	 	2019	 	
  	  	2Q	 	  	1Q	 	  	Total	 	 	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				 				  				  				  				  				
Net investment income	  	$	54	 	  	$	49	 	  	$	103	 	 	$	45	 	  	$	48	 	  	$	47	 	  	$	47	 	  	$	187	 	
Net investment gains (losses)	  	 	4	 	  	 	(75	) 	  	 	(71	) 	 	 	(12	) 	  	 	(9	) 	  	 	(4	) 	  	 	—  	 	  	 	(25	) 	
Policy fees and other income	  	 	32	 	  	 	33	 	  	 	65	 	 	 	35	 	  	 	35	 	  	 	35	 	  	 	35	 	  	 	140	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	90	 	  	 	7	 	  	 	97	 	 	 	68	 	  	 	74	 	  	 	78	 	  	 	82	 	  	 	302	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				 				  				  				  				  				
Benefits and other changes in policy reserves	  	 	4	 	  	 	20	 	  	 	24	 	 	 	5	 	  	 	8	 	  	 	13	 	  	 	1	 	  	 	27	 	
Interest credited	  	 	42	 	  	 	41	 	  	 	83	 	 	 	37	 	  	 	40	 	  	 	40	 	  	 	41	 	  	 	158	 	
Acquisition and operating expenses, net of deferrals	  	 	11	 	  	 	13	 	  	 	24	 	 	 	13	 	  	 	13	 	  	 	13	 	  	 	13	 	  	 	52	 	
Amortization of deferred acquisition costs and intangibles	  	 	(1	) 	  	 	17	 	  	 	16	 	 	 	2	 	  	 	10	 	  	 	4	 	  	 	2	 	  	 	18	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	56	 	  	 	91	 	  	 	147	 	 	 	57	 	  	 	71	 	  	 	70	 	  	 	57	 	  	 	255	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	34	 	  	 	(84	) 	  	 	(50	) 	 	 	11	 	  	 	3	 	  	 	8	 	  	 	25	 	  	 	47	 	
Provision (benefit) for income taxes	  	 	6	 	  	 	(18	) 	  	 	(12	) 	 	 	2	 	  	 	—  	 	  	 	1	 	  	 	5	 	  	 	8	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	28	 	  	 	(66	) 	  	 	(38	) 	 	 	9	 	  	 	3	 	  	 	7	 	  	 	20	 	  	 	39	 	
	 								
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				  				 				  				  				  				  				
Net investment (gains) losses, net(1)	  	 	(5	) 	  	 	67	 	  	 	62	 	 	 	10	 	  	 	9	 	  	 	2	 	  	 	—  	 	  	 	21	 	
Taxes on adjustments	  	 	1	 	  	 	(14	) 	  	 	(13	) 	 	 	(2	) 	  	 	(2	) 	  	 	—  	 	  	 	—  	 	  	 	(4	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	24	 	  	$	(13	) 	  	$	11	 	 	$	17	 	  	$	10	 	  	$	9	 	  	$	20	 	  	$	56	 	

 
(1)  Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:	   	  				  				
Net investment (gains) losses, gross	  	$	(4	) 	  	$	75	 	  	$	71	 	 	$	12	 	  	$	9	 	  	$	4	 	  	$	—  	 	  	$	25	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	(1	) 	  	 	(8	) 	  	 	(9	) 	 	 	(2	) 	  	 	—  	 	  	 	(2	) 	  	 	—  	 	  	 	(4	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net investment (gains) losses, net	  	$	(5	) 	  	$	67	 	  	$	62	 	 	$	10	 	  	$	9	 	  	$	2	 	  	$	—  	 	  	$	21	 	

34

 
Corporate and Other

 
 
35

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Adjusted Operating Loss—Corporate and Other(1) 
(amounts in millions)

 	  	2020	 	 	2019	 	
  	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				
Premiums	  	$	2	 	  	$	2	 	 	$	4	 	 	$	2	 	 	$	2	 	 	$	2	 	 	$	2	 	 	$	8	 	
Net investment income	  	 	1	 	  	 	6	 	 	 	7	 	 	 	3	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	9	 	
Net investment gains (losses)	  	 	(28	) 	  	 	46	 	 	 	18	 	 	 	(8	) 	 	 	5	 	 	 	(7	) 	 	 	(21	) 	 	 	(31	) 	
Policy fees and other income	  	 	(1	) 	  	 	1	 	 	 	—  	 	 	 	(1	) 	 	 	2	 	 	 	—  	 	 	 	1	 	 	 	2	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	(26	) 	  	 	55	 	 	 	29	 	 	 	(4	) 	 	 	11	 	 	 	(3	) 	 	 	(16	) 	 	 	(12	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	2	 	  	 	1	 	 	 	3	 	 	 	1	 	 	 	—  	 	 	 	1	 	 	 	1	 	 	 	3	 	
Acquisition and operating expenses, net of deferrals	  	 	—  	 	  	 	18	 	 	 	18	 	 	 	12	 	 	 	8	 	 	 	13	 	 	 	13	 	 	 	46	 	
Amortization of deferred acquisition costs and intangibles	  	 	1	 	  	 	—  	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	3	 	
Interest expense	  	 	42	 	  	 	46	 	 	 	88	 	 	 	54	 	 	 	53	 	 	 	54	 	 	 	53	 	 	 	214	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	45	 	  	 	65	 	 	 	110	 	 	 	69	 	 	 	62	 	 	 	68	 	 	 	67	 	 	 	266	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	(71	) 	  	 	(10	) 	 	 	(81	) 	 	 	(73	) 	 	 	(51	) 	 	 	(71	) 	 	 	(83	) 	 	 	(278	) 	
Provision (benefit) for income taxes	  	 	(12	) 	  	 	2	 	 	 	(10	) 	 	 	(16	) 	 	 	(21	) 	 	 	(7	) 	 	 	(9	) 	 	 	(53	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LOSS FROM CONTINUING OPERATIONS	  	 	(59	) 	  	 	(12	) 	 	 	(71	) 	 	 	(57	) 	 	 	(30	) 	 	 	(64	) 	 	 	(74	) 	 	 	(225	) 	
	 	 							
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:	  			 	  				 				 				 				 				 				 				
Net investment (gains) losses	  	 	28	 	  	 	(46	) 	 	 	(18	) 	 	 	8	 	 	 	(5	) 	 	 	7	 	 	 	21	 	 	 	31	 	
(Gains) losses on early extinguishment of debt	  	 	(3	) 	  	 	8	 	 	 	5	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Expenses related to restructuring	  	 	1	 	  	 	1	 	 	 	2	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	1	 	
Taxes on adjustments	  	 	(5	) 	  	 	8	 	 	 	3	 	 	 	(1	) 	 	 	—  	 	 	 	(1	) 	 	 	(5	) 	 	 	(7	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING LOSS	  	$	(38	) 	  	$	(41	) 	 	$	(79	) 	 	$	(50	) 	 	$	(35	) 	 	$	(57	) 	 	$	(58	) 	 	$	(200	) 	

 

(1) 	Includes inter-segment eliminations and the results of other businesses that are managed outside the operating segments, including certain smaller international mortgage insurance businesses.	
 
36

 
Additional Financial Data

 
 
37

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Investments Summary
(amounts in millions)

 	  	June 30, 2020	 	  	March 31, 2020	 	 	December 31, 2019	 	 	September 30, 2019	 	 	June 30, 2019	 		
 	  	Carrying
Amount	 	  	% of
Total	 	  	Carrying
Amount	 	  	% of
Total	 	 	Carrying
Amount	 	 	% of
Total	 	 	Carrying
Amount	 	  	% of
Total	 	 	Carrying
Amount	 	  	% of
Total	 		
	Composition of Investment Portfolio	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
Fixed maturity securities:	  				  			 	  				  				 				 				 				  				 				  					
Investment grade:	  				  			 	  				  				 				 				 				  				 				  					
Public fixed maturity securities(1)	  	$	35,802	 	  	 	45	% 	  	$	33,056	 	  	 	46	% 	 	$	33,684	 	 	 	45	% 	 	$	34,280	 	  	 	46	% 	 	$	32,958	 	  	 	46	% 		
Private fixed maturity securities	  	 	13,952	 	  	 	18	 	  	 	12,736	 	  	 	17	 	 	 	13,384	 	 	 	18	 	 	 	13,411	 	  	 	18	 	 	 	13,091	 	  	 	18	 		
Residential mortgage-backed securities(2)	  	 	2,151	 	  	 	3	 	  	 	2,243	 	  	 	3	 	 	 	2,232	 	 	 	3	 	 	 	2,335	 	  	 	3	 	 	 	2,395	 	  	 	3	 		
Commercial mortgage-backed securities	  	 	2,952	 	  	 	4	 	  	 	2,963	 	  	 	4	 	 	 	3,006	 	 	 	4	 	 	 	3,051	 	  	 	4	 	 	 	2,970	 	  	 	4	 		
Other asset-backed securities	  	 	2,921	 	  	 	4	 	  	 	3,061	 	  	 	4	 	 	 	3,257	 	 	 	4	 	 	 	3,337	 	  	 	5	 	 	 	3,287	 	  	 	5	 		
State and political subdivisions(1)	  	 	2,998	 	  	 	4	 	  	 	2,864	 	  	 	4	 	 	 	2,747	 	 	 	4	 	 	 	2,729	 	  	 	4	 	 	 	2,636	 	  	 	4	 		
Non-investment grade fixed maturity securities	  	 	2,768	 	  	 	4	 	  	 	2,128	 	  	 	3	 	 	 	2,029	 	 	 	3	 	 	 	2,090	 	  	 	3	 	 	 	2,154	 	  	 	3	 		
Equity securities:	  				  			 	  				  				 				 				 				  				 				  					
Common stocks and mutual funds	  	 	104	 	  	 	—  	 	  	 	91	 	  	 	—  	 	 	 	105	 	 	 	—  	 	 	 	107	 	  	 	—  	 	 	 	111	 	  	 	—  	 		
Preferred stocks	  	 	102	 	  	 	—  	 	  	 	97	 	  	 	—  	 	 	 	134	 	 	 	—  	 	 	 	132	 	  	 	—  	 	 	 	151	 	  	 	—  	 		
Commercial mortgage loans, net	  	 	6,917	 	  	 	9	 	  	 	6,915	 	  	 	10	 	 	 	6,963	 	 	 	9	 	 	 	7,033	 	  	 	10	 	 	 	7,019	 	  	 	10	 		
Policy loans	  	 	2,182	 	  	 	3	 	  	 	2,052	 	  	 	3	 	 	 	2,058	 	 	 	3	 	 	 	2,069	 	  	 	3	 	 	 	2,076	 	  	 	3	 		
Cash, cash equivalents, restricted cash and short-term investments	  	 	2,809	 	  	 	3	 	  	 	2,696	 	  	 	3	 	 	 	3,601	 	 	 	5	 	 	 	1,839	 	  	 	2	 	 	 	1,907	 	  	 	3	 		
Securities lending	  	 	59	 	  	 	—  	 	  	 	58	 	  	 	—  	 	 	 	51	 	 	 	—  	 	 	 	62	 	  	 	—  	 	 	 	113	 	  	 	—  	 		
Other invested assets:	 	Limited partnerships	  	 	764	 	  	 	1	 	  	 	671	 	  	 	1	 	 	 	634	 	 	 	1	 	 	 	565	 	  	 	1	 	 	 	512	 	  	 	1	 		
	 	Derivatives:	  				  			 	  				  				 				 				 				  				 				  					
	 	Interest rate swaps	  	 	939	 	  	 	1	 	  	 	1,002	 	  	 	1	 	 	 	197	 	 	 	—  	 	 	 	402	 	  	 	1	 	 	 	144	 	  	 	—  	 		
	 	Foreign currency swaps	  	 	17	 	  	 	—  	 	  	 	21	 	  	 	—  	 	 	 	4	 	 	 	—  	 	 	 	10	 	  	 	—  	 	 	 	5	 	  	 	—  	 		
	 	Equity index options	  	 	66	 	  	 	—  	 	  	 	62	 	  	 	—  	 	 	 	81	 	 	 	—  	 	 	 	62	 	  	 	—  	 	 	 	65	 	  	 	—  	 		
	 	Other foreign currency contracts	  	 	2	 	  	 	—  	 	  	 	16	 	  	 	—  	 	 	 	8	 	 	 	—  	 	 	 	13	 	  	 	—  	 	 	 	8	 	  	 	—  	 		
	 	Other	  	 	414	 	  	 	1	 	  	 	422	 	  	 	1	 	 	 	397	 	 	 	1	 	 	 	369	 	  	 	—  	 	 	 	357	 	  	 	—  	 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total invested assets and cash	  	$	77,919	 	  	 	100	% 	  	$	73,154	 	  	 	100	% 	 	$	74,572	 	 	 	100	% 	 	$	73,896	 	  	 	100	% 	 	$	71,959	 	  	 	100	% 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
	Public Fixed Maturity Securities—Credit Quality:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
	NRSRO(3) Designation	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
                           AAA	  	$	10,805	 	  	 	25	% 	  	$	11,025	 	  	 	27	% 	 	$	10,160	 	 	 	24	% 	 	$	10,561	 	  	 	25	% 	 	$	10,195	 	  	 	24	% 		
                             AA	  	 	3,636	 	  	 	8	 	  	 	3,554	 	  	 	8	 	 	 	3,536	 	 	 	8	 	 	 	3,758	 	  	 	9	 	 	 	3,674	 	  	 	9	 		
                               A	  	 	11,970	 	  	 	27	 	  	 	11,268	 	  	 	27	 	 	 	12,315	 	 	 	29	 	 	 	12,040	 	  	 	28	 	 	 	11,690	 	  	 	28	 		
                           BBB	  	 	16,780	 	  	 	37	 	  	 	14,807	 	  	 	35	 	 	 	15,041	 	 	 	36	 	 	 	15,418	 	  	 	35	 	 	 	14,768	 	  	 	36	 		
                             BB	  	 	1,506	 	  	 	3	 	  	 	1,139	 	  	 	3	 	 	 	1,040	 	 	 	3	 	 	 	1,093	 	  	 	3	 	 	 	1,128	 	  	 	3	 		
                               B	  	 	73	 	  	 	—  	 	  	 	50	 	  	 	—  	 	 	 	44	 	 	 	—  	 	 	 	53	 	  	 	—  	 	 	 	76	 	  	 	—  	 		
                     CCC and lower	  	 	24	 	  	 	—  	 	  	 	21	 	  	 	—  	 	 	 	26	 	 	 	—  	 	 	 	25	 	  	 	—  	 	 	 	25	 	  	 	—  	 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total public fixed maturity securities	  	$	44,794	 	  	 	100	% 	  	$	41,864	 	  	 	100	% 	 	$	42,162	 	 	 	100	% 	 	$	42,948	 	  	 	100	% 	 	$	41,556	 	  	 	100	% 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
	Private Fixed Maturity Securities—Credit Quality:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
	NRSRO(3) Designation	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
                           AAA	  	$	1,526	 	  	 	8	% 	  	$	1,382	 	  	 	8	% 	 	$	1,536	 	 	 	8	% 	 	$	1,594	 	  	 	9	% 	 	$	1,504	 	  	 	8	% 		
                             AA	  	 	2,209	 	  	 	12	 	  	 	2,090	 	  	 	12	 	 	 	2,235	 	 	 	12	 	 	 	2,254	 	  	 	12	 	 	 	2,315	 	  	 	13	 		
                               A	  	 	5,320	 	  	 	28	 	  	 	4,914	 	  	 	28	 	 	 	5,182	 	 	 	29	 	 	 	5,296	 	  	 	29	 	 	 	5,286	 	  	 	30	 		
                           BBB	  	 	8,530	 	  	 	46	 	  	 	7,883	 	  	 	46	 	 	 	8,305	 	 	 	46	 	 	 	8,222	 	  	 	45	 	 	 	7,905	 	  	 	44	 		
                             BB	  	 	994	 	  	 	5	 	  	 	819	 	  	 	5	 	 	 	844	 	 	 	5	 	 	 	851	 	  	 	5	 	 	 	865	 	  	 	5	 		
                               B	  	 	160	 	  	 	1	 	  	 	98	 	  	 	1	 	 	 	73	 	 	 	—  	 	 	 	66	 	  	 	—  	 	 	 	58	 	  	 	—  	 		
                     CCC and lower	  	 	11	 	  	 	—  	 	  	 	1	 	  	 	—  	 	 	 	2	 	 	 	—  	 	 	 	2	 	  	 	—  	 	 	 	2	 	  	 	—  	 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total private fixed maturity securities	  	$	18,750	 	  	 	100	% 	  	$	17,187	 	  	 	100	% 	 	$	18,177	 	 	 	100	% 	 	$	18,285	 	  	 	100	% 	 	$	17,935	 	  	 	100	% 		

 

(1) 	Certain fixed maturity securities balances have been reclassified as of December 31, 2019 to conform to the current period presentation.	
(2) 	The company does not have any material exposure to residential mortgage-backed securities collateralized debt obligations (CDOs).	
(3) 	Nationally Recognized Statistical Rating Organizations.	
 
38

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Fixed Maturity Securities Summary
(amounts in millions)

 	  	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 2019	 	 	September 30, 2019	 	 	June 30, 2019	 	
 	  	Fair Value	 	 	% of
Total	 	 	Fair Value	 	 	% of
Total	 	 	Fair Value	 	 	% of
Total	 	 	Fair Value	 	 	% of
Total	 	 	Fair Value	 	 	% of
Total	 	
Fixed Maturity Securities—Security Sector:	  				 			 	 				 				 				 				 				 				 				 				
	 	 									
U.S. government, agencies and government-sponsored enterprises	  	$	5,602	 	 	 	9	%   	 	$	5,771	 	 	 	10	% 	 	$	5,025	 	 	 	8	% 	 	$	5,254	 	 	 	9	% 	 	$	4,987	 	 	 	8	% 	
State and political subdivisions(1)	  	 	2,998	 	 	 	5	 	 	 	2,864	 	 	 	5	 	 	 	2,747	 	 	 	5	 	 	 	2,729	 	 	 	4	 	 	 	2,636	 	 	 	4	 	
Foreign government	  	 	1,542	 	 	 	2	 	 	 	1,201	 	 	 	2	 	 	 	1,350	 	 	 	2	 	 	 	1,359	 	 	 	2	 	 	 	1,336	 	 	 	2	 	
U.S. corporate(1)	  	 	34,395	 	 	 	54	 	 	 	31,077	 	 	 	52	 	 	 	32,111	 	 	 	54	 	 	 	32,424	 	 	 	54	 	 	 	31,329	 	 	 	53	 	
Foreign corporate	  	 	10,885	 	 	 	17	 	 	 	9,799	 	 	 	17	 	 	 	10,525	 	 	 	17	 	 	 	10,656	 	 	 	17	 	 	 	10,462	 	 	 	18	 	
Residential mortgage-backed securities	  	 	2,184	 	 	 	3	 	 	 	2,273	 	 	 	4	 	 	 	2,270	 	 	 	4	 	 	 	2,375	 	 	 	4	 	 	 	2,436	 	 	 	4	 	
Commercial mortgage-backed securities	  	 	2,970	 	 	 	5	 	 	 	2,981	 	 	 	5	 	 	 	3,026	 	 	 	5	 	 	 	3,071	 	 	 	5	 	 	 	2,989	 	 	 	5	 	
Other asset-backed securities	  	 	2,968	 	 	 	5	 	 	 	3,085	 	 	 	5	 	 	 	3,285	 	 	 	5	 	 	 	3,365	 	 	 	5	 	 	 	3,316	 	 	 	6	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturity securities	  	$	63,544	 	 	 	100	% 	 	$	59,051	 	 	 	100	% 	 	$	60,339	 	 	 	100	% 	 	$	61,233	 	 	 	100	% 	 	$	59,491	 	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate Bond Holdings—Industry Sector:	  				 			 	 				 				 				 				 				 				 				 				
	 	 									
Investment Grade:	  				 			 	 				 				 				 				 				 				 				 				
Finance and insurance	  	$	10,611	 	 	 	23	% 	 	$	9,523	 	 	 	23	% 	 	$	9,881	 	 	 	23	% 	 	$	9,995	 	 	 	22	% 	 	$	9,669	 	 	 	23	% 	
Utilities	  	 	6,052	 	 	 	13	 	 	 	5,555	 	 	 	14	 	 	 	5,743	 	 	 	14	 	 	 	5,868	 	 	 	14	 	 	 	5,697	 	 	 	14	 	
Energy	  	 	3,193	 	 	 	7	 	 	 	2,799	 	 	 	7	 	 	 	3,699	 	 	 	9	 	 	 	3,801	 	 	 	9	 	 	 	3,732	 	 	 	9	 	
Consumer—non-cyclical	  	 	6,836	 	 	 	15	 	 	 	6,163	 	 	 	15	 	 	 	6,247	 	 	 	15	 	 	 	6,293	 	 	 	15	 	 	 	6,043	 	 	 	14	 	
Consumer—cyclical	  	 	2,076	 	 	 	5	 	 	 	1,856	 	 	 	4	 	 	 	1,937	 	 	 	5	 	 	 	2,003	 	 	 	5	 	 	 	1,836	 	 	 	4	 	
Capital goods	  	 	3,511	 	 	 	8	 	 	 	3,076	 	 	 	8	 	 	 	3,161	 	 	 	7	 	 	 	3,243	 	 	 	8	 	 	 	3,108	 	 	 	7	 	
Industrial	  	 	2,210	 	 	 	5	 	 	 	2,063	 	 	 	5	 	 	 	2,201	 	 	 	5	 	 	 	2,188	 	 	 	5	 	 	 	2,093	 	 	 	5	 	
Technology and communications	  	 	4,221	 	 	 	9	 	 	 	3,966	 	 	 	10	 	 	 	3,966	 	 	 	9	 	 	 	3,919	 	 	 	9	 	 	 	3,821	 	 	 	10	 	
Transportation	  	 	2,151	 	 	 	5	 	 	 	2,047	 	 	 	5	 	 	 	2,127	 	 	 	5	 	 	 	2,189	 	 	 	5	 	 	 	2,121	 	 	 	5	 	
Other(1)	  	 	1,847	 	 	 	4	 	 	 	1,855	 	 	 	4	 	 	 	1,839	 	 	 	4	 	 	 	1,691	 	 	 	4	 	 	 	1,719	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	42,708	 	 	 	94	 	 	 	38,903	 	 	 	95	 	 	 	40,801	 	 	 	96	 	 	 	41,190	 	 	 	96	 	 	 	39,839	 	 	 	95	 	

Non-Investment Grade:	  				 			 	 				 				 				 				 				 				 				 				
Finance and insurance	  	 	258	 	 	 	1	 	 	 	211	 	 	 	1	 	 	 	212	 	 	 	1	 	 	 	208	 	 	 	—  	 	 	 	216	 	 	 	1	 	
Utilities	  	 	97	 	 	 	—  	 	 	 	77	 	 	 	—  	 	 	 	83	 	 	 	—  	 	 	 	85	 	 	 	—  	 	 	 	100	 	 	 	—  	 	
Energy	  	 	676	 	 	 	1	 	 	 	391	 	 	 	1	 	 	 	319	 	 	 	1	 	 	 	346	 	 	 	1	 	 	 	331	 	 	 	1	 	
Consumer—non-cyclical	  	 	218	 	 	 	1	 	 	 	196	 	 	 	1	 	 	 	138	 	 	 	—  	 	 	 	138	 	 	 	—  	 	 	 	155	 	 	 	—  	 	
Consumer—cyclical	  	 	297	 	 	 	1	 	 	 	225	 	 	 	1	 	 	 	220	 	 	 	1	 	 	 	233	 	 	 	1	 	 	 	243	 	 	 	1	 	
Capital goods	  	 	130	 	 	 	—  	 	 	 	149	 	 	 	—  	 	 	 	155	 	 	 	—  	 	 	 	137	 	 	 	—  	 	 	 	157	 	 	 	—  	 	
Industrial	  	 	288	 	 	 	1	 	 	 	193	 	 	 	—  	 	 	 	183	 	 	 	—  	 	 	 	224	 	 	 	1	 	 	 	207	 	 	 	—  	 	
Technology and communications	  	 	437	 	 	 	1	 	 	 	418	 	 	 	1	 	 	 	417	 	 	 	1	 	 	 	425	 	 	 	1	 	 	 	465	 	 	 	2	 	
Transportation	  	 	49	 	 	 	—  	 	 	 	29	 	 	 	—  	 	 	 	8	 	 	 	—  	 	 	 	8	 	 	 	—  	 	 	 	8	 	 	 	—  	 	
Other	  	 	122	 	 	 	—  	 	 	 	84	 	 	 	—  	 	 	 	100	 	 	 	—  	 	 	 	86	 	 	 	—  	 	 	 	70	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	2,572	 	 	 	6	 	 	 	1,973	 	 	 	5	 	 	 	1,835	 	 	 	4	 	 	 	1,890	 	 	 	4	 	 	 	1,952	 	 	 	5	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	45,280	 	 	 	100	% 	 	$	40,876	 	 	 	100	% 	 	$	42,636	 	 	 	100	% 	 	$	43,080	 	 	 	100	% 	 	$	41,791	 	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed Maturity Securities—Contractual Maturity Dates:	  				 			 	 				 				 				 				 				 				 				 				
	 	 									
Due in one year or less	  	$	1,517	 	 	 	2	% 	 	$	1,421	 	 	 	2	% 	 	$	1,434	 	 	 	2	% 	 	$	1,587	 	 	 	3	% 	 	$	1,684	 	 	 	3	% 	
Due after one year through five years	  	 	10,054	 	 	 	16	 	 	 	8,949	 	 	 	15	 	 	 	9,381	 	 	 	16	 	 	 	9,655	 	 	 	16	 	 	 	9,689	 	 	 	16	 	
Due after five years through ten years	  	 	14,478	 	 	 	23	 	 	 	12,642	 	 	 	21	 	 	 	12,296	 	 	 	20	 	 	 	12,387	 	 	 	20	 	 	 	11,985	 	 	 	20	 	
Due after ten years	  	 	29,373	 	 	 	46	 	 	 	27,700	 	 	 	48	 	 	 	28,647	 	 	 	48	 	 	 	28,793	 	 	 	47	 	 	 	27,392	 	 	 	46	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	55,422	 	 	 	87	 	 	 	50,712	 	 	 	86	 	 	 	51,758	 	 	 	86	 	 	 	52,422	 	 	 	86	 	 	 	50,750	 	 	 	85	 	
Mortgage and asset-backed securities	  	 	8,122	 	 	 	13	 	 	 	8,339	 	 	 	14	 	 	 	8,581	 	 	 	14	 	 	 	8,811	 	 	 	14	 	 	 	8,741	 	 	 	15	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturity securities	  	$	63,544	 	 	 	100	% 	 	$	59,051	 	 	 	100	% 	 	$	60,339	 	 	 	100	% 	 	$	61,233	 	 	 	100	% 	 	$	59,491	 	 	 	100	% 	

 

(1) 	Certain fixed maturity securities balances have been reclassified as of December 31, 2019 to conform to the current period presentation.	
 
39

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
General Account U.S. GAAP Net Investment Income Yields
(amounts in millions)

 	  	2020	 	 	2019	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
U.S. GAAP Net Investment Income	  			 	  				 				 				 				 				 				 				
Fixed maturity securities—taxable	  	$	601	 	  	$	622	 	 	$	1,223	 	 	$	616	 	 	$	631	 	 	$	634	 	 	$	613	 	 	$	2,494	 	
Fixed maturity securities—non-taxable	  	 	1	 	  	 	2	 	 	 	3	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	8	 	
Commercial mortgage loans	  	 	84	 	  	 	85	 	 	 	169	 	 	 	94	 	 	 	87	 	 	 	85	 	 	 	82	 	 	 	348	 	
Equity securities	  	 	2	 	  	 	2	 	 	 	4	 	 	 	3	 	 	 	4	 	 	 	5	 	 	 	4	 	 	 	16	 	
Other invested assets	  	 	52	 	  	 	49	 	 	 	101	 	 	 	50	 	 	 	49	 	 	 	47	 	 	 	44	 	 	 	190	 	
Limited partnerships	  	 	14	 	  	 	(2	) 	 	 	12	 	 	 	4	 	 	 	13	 	 	 	12	 	 	 	15	 	 	 	44	 	
Policy loans	  	 	49	 	  	 	49	 	 	 	98	 	 	 	42	 	 	 	47	 	 	 	45	 	 	 	46	 	 	 	180	 	
Cash, cash equivalents, restricted cash and short-term investments	  	 	4	 	  	 	11	 	 	 	15	 	 	 	9	 	 	 	8	 	 	 	11	 	 	 	11	 	 	 	39	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross investment income before expenses and fees	  	 	807	 	  	 	818	 	 	 	1,625	 	 	 	820	 	 	 	841	 	 	 	841	 	 	 	817	 	 	 	3,319	 	
Expenses and fees	  	 	(21	) 	  	 	(25	) 	 	 	(46	) 	 	 	(26	) 	 	 	(25	) 	 	 	(25	) 	 	 	(23	) 	 	 	(99	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment income	  	$	786	 	  	$	793	 	 	$	1,579	 	 	$	794	 	 	$	816	 	 	$	816	 	 	$	794	 	 	$	3,220	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Annualized Yields	  			 	  				 				 				 				 				 				 				
Fixed maturity securities—taxable	  	 	4.4	% 	  	 	4.6	% 	 	 	4.5	% 	 	 	4.6	% 	 	 	4.7	% 	 	 	4.7	% 	 	 	4.6	% 	 	 	4.6	% 	
Fixed maturity securities—non-taxable	  	 	2.6	% 	  	 	5.2	% 	 	 	4.1	% 	 	 	6.0	% 	 	 	6.1	% 	 	 	6.1	% 	 	 	6.1	% 	 	 	6.1	% 	
Commercial mortgage loans	  	 	4.9	% 	  	 	4.9	% 	 	 	4.9	% 	 	 	5.4	% 	 	 	5.0	% 	 	 	4.9	% 	 	 	4.8	% 	 	 	5.0	% 	
Equity securities	  	 	4.1	% 	  	 	3.8	% 	 	 	3.8	% 	 	 	5.0	% 	 	 	6.4	% 	 	 	7.8	% 	 	 	6.1	% 	 	 	6.3	% 	
Other invested assets(1)	  	 	49.8	% 	  	 	47.8	% 	 	 	49.0	% 	 	 	52.2	% 	 	 	54.0	% 	 	 	56.1	% 	 	 	65.7	% 	 	 	57.2	% 	
Limited partnerships(2)	  	 	7.8	% 	  	 	(1.2	)% 	 	 	3.5	% 	 	 	2.7	% 	 	 	9.7	% 	 	 	9.9	% 	 	 	13.8	% 	 	 	8.5	% 	
Policy loans	  	 	9.3	% 	  	 	9.5	% 	 	 	9.3	% 	 	 	8.1	% 	 	 	9.1	% 	 	 	8.8	% 	 	 	9.5	% 	 	 	8.9	% 	
Cash, cash equivalents, restricted cash and short-term investments	  	 	0.6	% 	  	 	1.4	% 	 	 	1.0	% 	 	 	1.3	% 	 	 	1.7	% 	 	 	2.2	% 	 	 	2.1	% 	 	 	1.7	% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross investment income before expenses and fees	  	 	4.8	% 	  	 	4.9	% 	 	 	4.8	% 	 	 	4.9	% 	 	 	5.1	% 	 	 	5.1	% 	 	 	5.0	% 	 	 	5.0	% 	
Expenses and fees	  	 	(0.1	)% 	  	 	(0.2	)% 	 	 	(0.1	)% 	 	 	(0.2	)% 	 	 	(0.2	)% 	 	 	(0.1	)% 	 	 	(0.2	)% 	 	 	(0.1	)% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment income	  	 	4.7	% 	  	 	4.7	% 	 	 	4.7	% 	 	 	4.7	% 	 	 	4.9	% 	 	 	5.0	% 	 	 	4.8	% 	 	 	4.9	% 	

Yields are based on net investment income as reported under U.S. GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability. See page 44 herein for average invested assets and cash used in the yield calculation.

(1) 	Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation.	
(2) 	Limited partnership investments are primarily equity-based and do not have fixed returns by period.	
 
40

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Net Investment Gains (Losses), Net—Detail
(amounts in millions)

 	  	2020	 	 	2019	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Net realized gains (losses) on available-for-sale securities:	  			 	  				 				 				 				 				 				 				
Fixed maturity securities:	  			 	  				 				 				 				 				 				 				
U.S. corporate	  	$	2	 	  	$	2	 	 	$	4	 	 	$	(2	) 	 	$	11	 	 	$	(16	) 	 	$	30	 	 	$	23	 	
U.S. government, agencies and government-sponsored enterprises	  	 	94	 	  	 	—  	 	 	 	94	 	 	 	—  	 	 	 	—  	 	 	 	2	 	 	 	33	 	 	 	35	 	
Foreign corporate	  	 	4	 	  	 	—  	 	 	 	4	 	 	 	1	 	 	 	1	 	 	 	(1	) 	 	 	(1	) 	 	 	—  	 	
Foreign government	  	 	10	 	  	 	5	 	 	 	15	 	 	 	4	 	 	 	2	 	 	 	2	 	 	 	—  	 	 	 	8	 	
State and political subdivisions	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Mortgage-backed securities	  	 	4	 	  	 	—  	 	 	 	4	 	 	 	—  	 	 	 	1	 	 	 	1	 	 	 	(2	) 	 	 	—  	 	
Asset-backed securities	  	 	(2	) 	  	 	—  	 	 	 	(2	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	(1	) 	
Foreign exchange	  	 	2	 	  	 	6	 	 	 	8	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	(1	) 	 	 	3	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total net realized gains (losses) on available-for-sale securities	  	 	114	 	  	 	13	 	 	 	127	 	 	 	5	 	 	 	16	 	 	 	(11	) 	 	 	58	 	 	 	68	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairments:	  			 	  				 				 				 				 				 				 				
Bank loans	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total impairments	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in allowance for credit losses on available-for-sale fixed maturity securities	  	 	(7	) 	  	 	—  	 	 	 	(7	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Net realized gains (losses) on equity securities sold	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	6	 	 	 	—  	 	 	 	3	 	 	 	9	 	
Net unrealized gains (losses) on equity securities still held	  	 	9	 	  	 	(19	) 	 	 	(10	) 	 	 	1	 	 	 	(4	) 	 	 	5	 	 	 	12	 	 	 	14	 	
Limited partnerships	  	 	37	 	  	 	(40	) 	 	 	(3	) 	 	 	19	 	 	 	6	 	 	 	(11	) 	 	 	15	 	 	 	29	 	
Commercial mortgage loans	  	 	1	 	  	 	—  	 	 	 	1	 	 	 	(1	) 	 	 	(1	) 	 	 	1	 	 	 	(1	) 	 	 	(2	) 	
Derivative instruments	  	 	10	 	  	 	(105	) 	 	 	(95	) 	 	 	(1	) 	 	 	(29	) 	 	 	(30	) 	 	 	(12	) 	 	 	(72	) 	
Other	  	 	(5	) 	  	 	(1	) 	 	 	(6	) 	 	 	1	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	5	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment gains (losses), gross	  	 	159	 	  	 	(152	) 	 	 	7	 	 	 	23	 	 	 	(2	) 	 	 	(46	) 	 	 	75	 	 	 	50	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	4	 	  	 	11	 	 	 	15	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	2	 	 	 	11	 	
Adjustment for net investment (gains) losses attributable to noncontrolling interests	  	 	(32	) 	  	 	26	 	 	 	(6	) 	 	 	(9	) 	 	 	4	 	 	 	—  	 	 	 	(6	) 	 	 	(11	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment gains (losses), net	  	$	131	 	  	$	(115	) 	 	$	16	 	 	$	17	 	 	$	5	 	 	$	(43	) 	 	$	71	 	 	$	50	 	

 
41

 
Reconciliations of Non-GAAP Measures

 
 
42

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Reconciliation of Operating ROE
(amounts in millions)

	Twelve Month Rolling Average ROE	  	Twelve months ended	 	
 	  	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	  	June 30,
2019	 		
U.S. GAAP Basis ROE	  				 				 				 				  					
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended(1)	  	$	(506	) 	 	$	103	 	 	$	343	 	 	$	31	 	  	$	159	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income(2)	  	$	10,618	 	 	$	10,695	 	 	$	10,650	 	 	$	10,646	 	  	$	10,609	 		
U.S. GAAP Basis ROE(1)/(2)	  	 	(4.8	)% 	 	 	1.0	% 	 	 	3.2	% 	 	 	0.3	% 	  	 	1.5	% 		
							
Operating ROE	  				 				 				 				  					
Adjusted operating income for the twelve months ended(1)	  	$	159	 	 	$	358	 	 	$	420	 	 	$	91	 	  	$	67	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income(2)	  	$	10,618	 	 	$	10,695	 	 	$	10,650	 	 	$	10,646	 	  	$	10,609	 		
Operating ROE(1)/(2)	  	 	1.5	% 	 	 	3.3	% 	 	 	3.9	% 	 	 	0.9	% 	  	 	0.6	% 		
			
	Quarterly Average ROE	  	Three months ended	 	
 	  	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	  	June 30,
2019	 		
U.S. GAAP Basis ROE	  				 				 				 				  					
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended(3)	  	$	(441	) 	 	$	(66	) 	 	$	(17	) 	 	$	18	 	  	$	168	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income(4)	  	$	10,415	 	 	$	10,693	 	 	$	10,759	 	 	$	10,755	 	  	$	10,663	 		
Annualized U.S. GAAP Quarterly Basis ROE(3)/(4)	  	 	(16.9	)% 	 	 	(2.5	)% 	 	 	(0.6	)% 	 	 	0.7	% 	  	 	6.3	% 		
							
Operating ROE	  				 				 				 				  					
Adjusted operating income (loss) for the period ended(3)	  	$	(21	) 	 	$	33	 	 	$	24	 	 	$	123	 	  	$	178	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income(4)	  	$	10,415	 	 	$	10,693	 	 	$	10,759	 	 	$	10,755	 	  	$	10,663	 		
Annualized Operating Quarterly Basis ROE(3)/(4)	  	 	(0.8	)% 	 	 	1.2	% 	 	 	0.9	% 	 	 	4.6	% 	  	 	6.7	% 		
Non-GAAP Definition for Operating ROE
The company references the non-GAAP financial measure entitled “operating return on equity” or “operating ROE.” The company defines operating ROE as adjusted operating income (loss) divided by average ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss) in average ending Genworth Financial, Inc.’s stockholders’ equity. Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders divided by average ending Genworth Financial, Inc.’s stockholders’ equity determined in accordance with U.S. GAAP.

(1) 	The twelve months ended information is derived by adding the four quarters of net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) from page 9 herein.	
(2) 	Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, for the most recent five quarters.	
(3) 	Net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) from page 9 herein.	
(4) 	Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income.	
 
43

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
 
Reconciliation of Reported Yield to Core Yield

																																			
 	  	 	  	2020	 	 	2019	 	
	  	(Assets—amounts in billions)	  	 	2Q	 	  	 	1Q	 	 	 	Total	 	 	 	4Q	 	 	 	3Q	 	 	 	2Q	 	 	 	1Q	 	 	 	Total	 	
	  	Reported—Total Invested Assets and Cash	  	$	77.9	 	  	$	73.2	 	 	$	77.9	 	 	$	74.6	 	 	$	73.9	 	 	$	72.0	 	 	$	69.5	 	 	$	74.6	 	
	  	Subtract:	  			 	  				 				 				 				 				 				 				
	  	Securities lending	  	 	0.1	 	  	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	
	  	Unrealized gains (losses)	  	 	9.7	 	  	 	6.0	 	 	 	9.7	 	 	 	6.9	 	 	 	7.5	 	 	 	5.7	 	 	 	3.7	 	 	 	6.9	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Adjusted end of period invested assets and cash	  	$	68.1	 	  	$	67.1	 	 	$	68.1	 	 	$	67.6	 	 	$	66.3	 	 	$	66.2	 	 	$	65.7	 	 	$	67.6	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(A)	  	Average Invested Assets and Cash Used in Reported and Core Yield Calculation	  	$	67.6	 	  	$	67.3	 	 	$	67.6	 	 	$	66.9	 	 	$	66.2	 	 	$	66.0	 	 	$	65.7	 	 	$	66.3	 	
		 								
	  	(Income—amounts in millions)	  			 	  				 				 				 				 				 				 				
		 								
(B)	  	Reported—Net Investment Income	  	$	786	 	  	$	793	 	 	$	1,579	 	 	$	794	 	 	$	816	 	 	$	816	 	 	$	794	 	 	$	3,220	 	
	  	Subtract:	  			 	  				 				 				 				 				 				 				
	  	Bond calls and commercial mortgage loan prepayments	  	 	8	 	  	 	16	 	 	 	24	 	 	 	23	 	 	 	13	 	 	 	7	 	 	 	6	 	 	 	49	 	
	  	Other non-core items(1)	  	 	2	 	  	 	7	 	 	 	9	 	 	 	(2	) 	 	 	8	 	 	 	7	 	 	 	2	 	 	 	15	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(C)	  	Core Net Investment Income	  	$	776	 	  	$	770	 	 	$	1,546	 	 	$	773	 	 	$	795	 	 	$	802	 	 	$	786	 	 	$	3,156	 	

(B) / (A)	  	Reported Yield	  	 	4.65	% 	  	 	4.71	% 	 	 	4.67	% 	 	 	4.74	% 	 	 	4.93	% 	 	 	4.95	% 	 	 	4.83	% 	 	 	4.86	% 	
(C) / (A)	  	Core Yield	  	 	4.59	% 	  	 	4.57	% 	 	 	4.57	% 	 	 	4.62	% 	 	 	4.80	% 	 	 	4.86	% 	 	 	4.79	% 	 	 	4.76	% 	
Note:    Yields have been annualized.
Non-GAAP Definition for Core Yield
The company references the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP.

(1) 	Includes cost basis adjustments on structured securities and various other immaterial items.	
 
44

 
Corporate Information

 
 
45

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2020
Financial Strength Ratings As Of July 28, 2020

	Company	  	Standard & Poor’s Financial
Services LLC (S&P)	  	Moody’s Investors Service,
Inc. (Moody’s)	  	A.M. Best Company, Inc.
(A.M. Best)	
Genworth Mortgage Insurance Corporation	  	BB+ (Marginal)	  	Baa3 (Adequate)	  	N/A		
Genworth Financial Mortgage Insurance Pty Limited (Australia)(1)	  	A (Strong)	  	N/A	  	N/A		
Genworth Life Insurance Company	  	N/A	  	N/A	  	C++ (Marginal)		
Genworth Life and Annuity Insurance Company	  	N/A	  	N/A	  	B (Fair)		
Genworth Life Insurance Company of New York	  	N/A	  	N/A	  	C++ (Marginal)		
The S&P, Moody’s, A.M. Best, HR Ratings and Fitch Rating Service (Fitch) ratings included herewith represent those solicited by the company and are not designed to be, and do not serve as, measures of protection or valuation offered to investors. These financial strength ratings should not be relied on with respect to making an investment in the company’s securities.
S&P states that an insurer rated “A” (Strong) has strong financial security characteristics that outweigh any vulnerabilities and is highly likely to have the ability to meet financial commitments. Insurers rated “A” (Strong) or “BB” (Marginal) have strong or marginal financial security characteristics, respectively. The “A” and “BB” ranges are the third- and fifth-highest of nine financial strength rating ranges assigned by S&P, which range from “AAA” to “R.” A plus (+) or minus (-) shows relative standing within a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “A” and “BB+” ratings are the sixth- and eleventh-highest of S&P’s 21 ratings categories.
Moody’s states that insurance companies rated “Baa” (Adequate) offer adequate financial security. The “Baa” (Adequate) range is the fourth-highest of nine financial strength rating ranges assigned by Moody’s, which range from “Aaa” to “C.” Numeric modifiers are used to refer to the ranking within the groups, with 1 being the highest and 3 being the lowest. These modifiers are not added to ratings in the “Aaa” category or to ratings below the “Caa” category. Accordingly, the “Baa3” rating is the tenth-highest of Moody’s 21 ratings categories.
A.M. Best states that its “B” (Fair) rating is assigned to companies that have, in its opinion, a fair ability to meet their ongoing insurance obligations while “C++” (Marginal) is assigned to those companies that have, in its opinion, a marginal ability to meet their ongoing insurance obligations. The “B” (Fair) and “C++” (Marginal) ratings are the seventh- and ninth-highest of 15 ratings assigned by A.M. Best, which range from “A++” to “F.”
The Australian mortgage insurance subsidiary also solicits a rating from Fitch. Fitch states that “A” (Strong) rated insurance companies are viewed as possessing strong capacity to meet policyholder and contract obligations. The “A” rating category is the third-highest of nine financial strength rating categories, which range from “AAA” to “C.” The symbol (+) or (-) may be appended to a rating to indicate the relative position of a credit within a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “B” category. Accordingly, the “A” rating is the sixth-highest of Fitch’s 21 ratings categories.
The company also solicits a rating from HR Ratings on a local scale for Genworth Seguros de Credito a la Vivienda S.A. de C.V., its Mexican mortgage insurance subsidiary, with a short-term rating of “HR1” and long-term rating of “HR AA.” For short-term ratings, HR Ratings states that “HR1” rated companies are viewed as exhibiting high capacity for timely payment of debt obligations in the short-term and maintain low credit risk. The “HR1” short-term rating category is the highest of six short-term rating categories, which range from “HR1” to “HR D.” For long-term ratings, HR Ratings states that “HR AA” rated companies are viewed as having high credit quality and offer high safety for timely payment of debt obligations and maintain low credit risk under adverse economic scenarios. The “HR AA” long-term rating is the second-highest of HR Rating’s eight long-term rating categories, which range from “HR AAA” to “HR D.”
S&P, Moody’s, A.M. Best, Fitch and HR Ratings review their ratings periodically and the company cannot assure you that it will maintain the current ratings in the future. These and other agencies may also rate the company or its insurance subsidiaries on a solicited or an unsolicited basis. The company does not provide information to agencies issuing unsolicited ratings and cannot ensure that any agencies that rate the company or its insurance subsidiaries on an unsolicited basis will continue to do so.

(1) 	Genworth Financial Mortgage Insurance Pty Limited (Australia) is also rated “A” by Fitch.	
 
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