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 30, 2019
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 30, 2019, Genworth Financial, Inc. (the “Company”) issued (1) a press release announcing its financial results for the quarter ended June 30, 2019, 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, 2019, 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 30, 2019.		
			
99.2	  	Financial Supplement for the quarter ended June 30, 2019.		
 
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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 30, 2019	 		 	By:	 	/s/ Matthew D. Farney	
	 		 		 	Matthew D. Farney	
	 		 		 	Vice President and Controller	
	 		 		 	(Principal Accounting Officer)	
 
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Exhibit 99.1

Genworth Financial Announces Second Quarter 2019 Results
Net Income Of $168 Million And Adjusted Operating Income Of $204 Million
 
 	•	 	Merger Agreement With China Oceanwide Holdings Group Co., LTD (Oceanwide) Extended To No Later Than November 30, 2019; Actively Soliciting Interest In Genworth MI Canada	
 
 	•	 	U.S. Mortgage Insurance (MI) Adjusted Operating Income Of $147 Million With $15.8 Billion In New Insurance Written (NIW) And Continued Strong Loss Performance	
 
 	•	 	U.S. MI’s PMIERs 1 Sufficiency Ratio At 123 Percent, In Excess Of $650 Million Above The Revised Standards That Became Effective On March 31, 2019	
 
 	•	 	Continued Strong Capital Levels In Canada And Australia MI With $58 Million In Capital Returned To The Holding Company	
 
 	•	 	Continued Progress With Long Term Care Insurance (LTC) In Force Rate Actions In Line With Plan	
 
 	•	 	Holding Company Cash & Liquid Assets Of $403 Million	
Richmond, VA (July 30, 2019) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended June 30, 2019. The company reported net income 2 of $168 million, or $0.33 per diluted share, in the second quarter of 2019, compared with net income of $190 million, or $0.38 per diluted share, in the second quarter of 2018. The company reported adjusted operating income 3 of $204 million, or $0.40 per diluted share, in the second quarter of 2019, compared with adjusted operating income of $200 million, or $0.40 per diluted share, in the second quarter of 2018.
Strategic Update
Genworth and Oceanwide remain committed to the merger agreement and continue to work towards closing as soon as possible.
On June 30, 2019, Genworth and Oceanwide agreed to an eleventh waiver and extension of the merger agreement to a date not later than November 30, 2019. This waiver and agreement also

1  	Private Mortgage Insurer Eligibility Requirements	
2  	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.	
3  	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.	

stated that Oceanwide has agreed to allow Genworth to solicit interest for a potential disposition of its interest in Genworth MI Canada Inc. (Genworth Canada). In the absence of any substantive progress in discussions with Canadian regulators, the parties concluded that exploring disposition options for Genworth Canada is in their best interests to successfully complete the Oceanwide transaction. Since this announcement, Genworth has received expressions of interest for the Genworth Canada business and continues to work with its advisors to assess the best possible disposition strategy.
With respect to the Oceanwide transaction regulatory review process, the parties have received approvals from all necessary U.S. regulators. The parties are in discussion with certain regulators about the impact of the Genworth Canada disposition on their previously issued approvals for the Oceanwide transaction. Further, Oceanwide will need to receive clearance in China for currency conversion and the transfer of funds.
Genworth and Oceanwide remain committed to the capital investment plan under which Oceanwide and/or its affiliates will contribute an aggregate of $1.5 billion to Genworth over time following the consummation of the merger.
“The extension of the merger agreement provides us with the flexibility to explore our disposition options for Genworth Canada in order to facilitate the Oceanwide transaction and maximize value for Genworth’s stakeholders,” said Tom McInerney, president and CEO of Genworth. “I am pleased with the interest we have received for Genworth Canada, which is a well performing business as demonstrated by its consistent performance this quarter. We remain fully committed to the transaction with Oceanwide and continue to believe that it represents the greatest and most certain value for all Genworth stakeholders. We appreciate Oceanwide’s committed partnership and patience throughout this process and look forward to working towards the successful completion of our transaction.”
LU Zhiqiang, chairman of Oceanwide, added: “Oceanwide remains committed to the transaction at the original purchase price of $5.43 per share. We also remain committed to the $1.5 billion contribution to Genworth over time, following the consummation of the transaction. We look forward to closing the transaction as soon as possible so that we can bring certainty to Genworth stockholders and begin to realize the benefits of our merger.”
 
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Financial Performance

Consolidated Net Income & Adjusted Operating Income	 		
 	  	Three months ended June 30	 	  	 	 		
 	  	2019	 	  	2018	 	  	 	 		
	(Amounts in millions, except per share)	  	Total	 	  	Per
diluted
share	 	  	Total	 	  	Per
diluted
share	 	  	Total
% change	 	
Net income available to Genworth’s common stockholders	  	$	168		  	$	0.33		  	$	190		  	$	0.38		  	 	(12	)% 		
Adjusted operating income	  	$	204		  	$	0.40		  	$	200		  	$	0.40		  	 	2 	% 		
Weighted-average diluted shares	  	 	508.7		  				  	 	502.6		  				  					
				
 	  	As of June 30	 	  	 	 		
 	  	2019	 	  	2018	 	  	 	 		
Book value per share	  				  	$	27.32		  				  	$	25.78		  					
Book value per share, excluding accumulated other comprehensive income (loss)	  				  	$	21.34		  				  	$	21.14		  					
Net investment losses, net of taxes and other adjustments, reduced net income by $35 million in the quarter, driven primarily by derivative losses and net mark-to-market losses from equity securities and limited partnerships. Net income in the second quarter of 2018 was reduced by net investment losses, net of taxes and other adjustments, of $10 million.
Net investment income was $852 million in the quarter, up from $829 million in the prior quarter and $828 million in the prior year. Net investment income increased compared to the prior quarter and the prior year primarily due to favorable prepayment speed adjustments on mortgage-backed securities and inflation impact on U.S. Government Treasury Inflation Protected Securities (TIPS). The reported yield and the core yield 3 for the quarter were 4.82 percent and 4.74 percent, respectively, compared to 4.71 percent and 4.67 percent, respectively, in the prior quarter.
Genworth’s effective tax rate for the quarter was approximately 33 percent. This included $11 million of unfavorable charges related to the Global Intangible Low Taxed Income (GILTI) provision of the 2017 Tax Cuts and Jobs Act. These charges are reflected in Corporate and Other activities and are expected to continue throughout 2019 and into 2020, although a transaction involving the disposition of Genworth Canada would reduce future GILTI impacts. The effective tax rate was also increased by higher jurisdictional rates of foreign operations as well as the tax effect of forward starting swap gains settled prior to the change in the corporate tax rate, which will continue to be tax effected at 35 percent as they are amortized into net investment income.
Adjusted operating income (loss) results by business line are summarized in the table below:

Adjusted Operating Income (Loss)	  	 	 	  	 	 	  	 	 		
	(Amounts in millions)	  	Q2 19	 	  	Q1 19	 	  	Q2 18	 	
U.S. Mortgage Insurance	  	$	147	 	  	$	124	 	  	$	137			
Canada Mortgage Insurance	  	 	41	 	  	 	41	 	  	 	46			
Australia Mortgage Insurance	  	 	13	 	  	 	14	 	  	 	22			
U.S. Life Insurance	  	 	66	 	  	 	(5	) 	  	 	57			
Runoff	  	 	9	 	  	 	20	 	  	 	13			
Corporate and Other	  	 	(72	) 	  	 	(73	) 	  	 	(75	) 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Total Adjusted Operating Income	  	$	204	 	  	$	121	 	  	$	200			

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Adjusted operating income (loss) represents income (loss) from continuing operations excluding net investment gains (losses), 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 to adjusted operating income is included at the end of this press release.
Unless specifically noted in the discussion of results for the MI businesses in Canada and Australia, references to percentage changes exclude the impact of translating foreign denominated activity into U.S. dollars (foreign exchange). Percentage changes, which 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 19	 	 	Q1 19	 	 	Q2 18	 	
Adjusted operating income	  	$	147	 	 	$	124	 	 	$	137	 		
New insurance written	  				 				 					
Primary Flow	  	$	15,800	 	 	$	9,600	 	 	$	11,400	 		
Loss ratio	  	 	—  	% 	 	 	8	% 	 	 	(8	)% 		
U.S. MI reported adjusted operating income of $147 million, U.S. MI’s highest quarterly adjusted operating income since the IPO 4 of Genworth in 2004, compared with $124 million in the prior quarter and $137 million in the prior year. U.S. MI’s flow insurance in force increased 12 percent versus the prior year from strong NIW and persistency, driving continued growth in earned premiums, which exceeded $200 million. The loss ratio in the current quarter was zero, down eight points sequentially and up eight points from the prior year. Losses in the quarter included a favorable $10 million pre-tax reserve adjustment which reduced the loss ratio by five points. Prior year results included a favorable $28 million pre-tax reserve adjustment which reduced that period’s loss ratio by 15 points. Excluding the impact of reserve adjustments, losses continue to develop favorably with strong cure rates.
U.S. MI achieved $15.8 billion in flow NIW in the quarter, up 65 percent from the prior quarter driven primarily by a larger estimated mortgage insurance market, from a seasonally higher purchase originations market as well as a higher refinance originations market as rates have remained low. Flow NIW was up 39 percent versus the prior year driven by an estimated increase in the mortgage insurance market from both a higher purchase and refinance originations market as well as an estimated increase in market share with the continued roll-out of the company’s proprietary risk-based pricing engine, GenRATE, and selective participation in forward commitment transactions.

4  	Initial Public Offering	
 
4

Canada Mortgage Insurance

Operating Metrics	  	 	 	 	 	 	 	 	 		
	(Dollar amounts in millions)	  	Q2 19	 	 	Q1 19	 	 	Q2 18	 	
Adjusted operating income	  	$	41	 	 	$	41	 	 	$	46	 		
New insurance written	  				 				 					
Flow	  	$	3,900	 	 	$	2,200	 	 	$	3,700	 		
Bulk	  	$	1,900	 	 	$	700	 	 	$	900	 		
Loss ratio	  	 	15	% 	 	 	15	% 	 	 	15	% 		
Canada MI reported adjusted operating income of $41 million, consistent with the prior quarter and compared to $46 million in the prior year. Compared to the prior year, results declined primarily due to higher taxes and unfavorable foreign exchange impacts. The loss ratio in the quarter was 15 percent, flat both sequentially and versus the prior year from lower levels of new delinquencies, net of cures, offset by a higher average reserve per delinquency, driven primarily from Alberta.
Flow NIW increased 77 percent 5 sequentially from a seasonally larger originations market and increased 11 percent 5 from the prior year primarily from a modestly larger originations market. Bulk NIW for the quarter increased versus the prior quarter and prior year driven by higher lender demand.
Australia Mortgage Insurance

Operating Metrics	  	 	 	 	 	 	 	 	 		
	(Dollar amounts in millions)	  	Q2 19	 	 	Q1 19	 	 	Q2 18	 	
Adjusted operating income	  	$	13	 	 	$	14	 	 	$	22	 		
New insurance written	  				 				 					
Flow	  	$	3,700	 	 	$	3,400	 	 	$	3,700	 		
Bulk	  	$	1,200	 	 	$	500	 	 	$	900	 		
Loss ratio	  	 	34	% 	 	 	34	% 	 	 	28	% 		
Australia MI reported adjusted operating income of $13 million versus $14 million in the prior quarter and $22 million in the prior year. Results in the prior year were favorably impacted by approximately $4 million after-tax as a result of increased recognition of premiums driven by higher policy cancellations. The loss ratio in the quarter was 34 percent, flat sequentially and up six points from prior year primarily due to lower levels of earned premium from higher levels of policy cancellations in the prior year and seasoning of the in force portfolio.
Flow NIW was up 12 percent 5  sequentially from a seasonally larger originations market and up eight percent 5 from the prior year due to higher mortgage origination volume from certain key customers.

5  	Percent change excludes the impact of foreign exchange.	
 
5

U.S. Life Insurance

Adjusted Operating Income (Loss)	  	 	 	  	 	 	 	 	 		
	(Amounts in millions)	  	Q2 19	 	  	Q1 19	 	 	Q2 18	 	
Long Term Care Insurance	  	$	37		  	$	(20	) 	 	$	22			
Life Insurance	  	 	10		  	 	(2	) 	 	 	4			
Fixed Annuities	  	 	19		  	 	17		 	 	31			
	  	 	 	 	  	 	 	 	 	 	 	 		
Total U.S. Life Insurance	  	$	66		  	$	(5	) 	 	$	57			
	  	 	 	 	  	 	 	 	 	 	 	 		
Long Term Care Insurance
Long term care insurance reported adjusted operating income of $37 million, compared with an adjusted operating loss of $20 million in the prior quarter and adjusted operating income of $22 million in the prior year. Compared to the prior quarter and prior year, results reflected higher earnings from in force rate actions and favorable benefit utilization, partially offset by growth in new claims. Compared to the prior year, results reflected favorable development on prior year incurred but not reported claims. Results also benefitted from seasonally higher claim terminations versus the prior quarter.
Life Insurance
Life insurance reported adjusted operating income of $10 million, compared with an adjusted operating loss of $2 million in the prior quarter and adjusted operating income of $4 million in the prior year. Current quarter results included a reinsurance correction and a refinement resulting in a net favorable after-tax impact of $17 million. Results versus the prior quarter and prior year reflected higher mortality and higher lapses resulting in higher amortization of deferred acquisition costs (DAC) primarily associated with larger 20-year level-premium term life insurance blocks entering their post-level premium periods. Results in the prior quarter also included an unfavorable after-tax impact of $11 million from model corrections.
Fixed Annuities
Fixed annuities reported adjusted operating income of $19 million, compared with $17 million in the prior quarter and $31 million in the prior year. Results included unfavorable charges of $4 million after-tax from loss recognition testing on the single premium immediate annuity block versus $13 million in the prior quarter. Results versus the prior quarter and prior year also reflected lower mortality in the single premium immediate annuity block.
Runoff
Runoff reported adjusted operating income of $9 million, compared with $20 million in the prior quarter and $13 million in the prior year. Results in the current quarter reflected impacts in the company’s variable annuity business from less favorable equity market performance and lower interest rates compared to the prior quarter and higher mortality compared to the prior quarter and prior year.
 
6

Corporate And Other
Corporate and Other reported an adjusted operating loss of $72 million, compared with $73 million in the prior quarter and $75 million in the prior year. Results in the current quarter reflected the previously mentioned unfavorable tax reform impacts related to GILTI. Results in the current quarter also reflected approximately $6 million of unfavorable tax timing adjustments required for interim reporting which, in addition to the $13 million in related tax expenses in the prior quarter, are expected to reverse by year-end.
Capital & Liquidity
Genworth maintains the following capital positions in its operating subsidiaries:

Key Capital & Liquidity Metrics	  	 	 	 	 	 	 	 	 		
	(Dollar amounts in millions)	  	Q2 19	 	 	Q1 19	 	 	Q2 18	 	
	  	 	 	 	 	 	 	 	 	 	 	 		
U.S. MI	  				 				 					
Consolidated Risk-To-Capital Ratio 6  	  	 	11.8:1	 	 	 	11.9:1	 	 	 	12.6:1	 		
Genworth Mortgage Insurance Corporation Risk-To-Capital Ratio 6 	  	 	12.1:1	 	 	 	12.1:1	 	 	 	12.8:1	 		
Private Mortgage Insurer Eligibility Requirements (PMIERs) Sufficiency Ratio 6, 7  	  	 	123	% 	 	 	123	% 	 	 	129	% 		
Canada MI	  				 				 					
Mortgage Insurer Capital Adequacy Test (MICAT) Ratio 6, 8  	  	 	169	% 	 	 	172	% 	 	 	170	% 		
Australia MI	  				 				 					
Prescribed Capital Amount (PCA) Ratio 6	  	 	208	% 	 	 	201	% 	 	 	190	% 		
U.S. Life Insurance Companies	  				 				 					
Consolidated Risk-Based Capital (RBC) Ratio 6 	  	 	190	% 	 	 	195	% 	 	 	277	% 		
Holding Company Cash and Liquid Assets 9 , 10	  	$	403		 	$	405		 	$	622			
Key Points
 
 	•	 	U.S. MI’s PMIERs sufficiency ratio is estimated to be 123 percent under the revised standards that became effective on March 31, 2019, in excess of $650 million above requirements;	
 
 	•	 	Canada MI’s MICAT ratio is estimated to be 169 percent, above both the regulatory minimum requirement of 150 percent and the company’s operating range of 160 to 165 percent;	
 
 	•	 	Australia MI’s PCA ratio increased sequentially to 208 percent, above the company’s target operating range of 132 to 144 percent. The increase in the quarter was driven primarily by lower required capital from policy cancellations and seasoning of the in force portfolio, partially offset by share repurchases during the quarter;	

6  	Company estimate for the second quarter of 2019 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. The periods ending June 30, 2019 and March 31, 2019 reflect the revised PMIERs standards effective March 31, 2019. As of June 30, 2019, March 31, 2019, and June 30, 2018, the PMIERs sufficiency ratios were in excess of $650 million, $600 million and $700 million, respectively, of available assets above the applicable PMIERs requirements.	
8  	MICAT requirements implemented January 1, 2019; the June 30, 2018 period reflects the Minimum Capital Test (MCT) ratio.	
9  	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.	
10  	Genworth Holdings, Inc. had $358 million, $361 million and $547 million of cash, cash equivalents and restricted cash as of June 30, 2019, March 31, 2019 and June 30, 2018, respectively, which included approximately $7 million, $16 million and $16 million of restricted cash, respectively. Genworth Holdings, Inc. also held $45 million, $44 million and $75 million in U.S. government securities as of June 30, 2019, March 31, 2019 and June 30, 2018, respectively, which included $42 million, $37 million and $36 million, respectively, of restricted assets.	
 
7

 	•	 	The U.S. Life insurance companies’ consolidated RBC ratio is estimated to be approximately 190 percent, down from 195 percent in the prior quarter, with in force statutory earnings more than offset by increases in required capital primarily in variable annuities from lower interest rates and growth of new claims in LTC.	
 
 	•	 	The holding company ended the quarter with $403 million of cash and liquid assets, which is approximately $100 million below the company’s target of two times expected annual debt interest payments excluding restricted cash and assets. Holding company cash is expected to benefit from the $1.5 billion of capital from Oceanwide after the closing of the transaction and would also benefit from any potential divestment in Genworth Canada.	
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 subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found at  http://genworth.ca  and http://www.genworth.com.au .
Conference Call And Financial Supplement Information
This press release and the second quarter 2019 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 7:00 a.m. on July 31, 2019. Investors are encouraged to review these materials.
Genworth will conduct a conference call on July 31, 2019 at 8:00 a.m. (ET) to discuss business results and provide an update on strategic objectives, including the pending transaction with China Oceanwide Holdings
 
8

Group Co., Ltd. The conference call will be accessible via telephone and the Internet. The dial-in number for the conference call is 888 208.1820 or 323 794.2110 (outside the U.S.); conference ID # 3003632. 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.
Replays of the call will be available through August 15, 2019 at 888 203.1112 or 719 457.0820 (outside the U.S.); conference ID # 3003632. 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) 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 impairments, 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.
In the first quarter of 2019, the company revised how it taxes the adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) to align the tax rate used in the reconciliation to each segment’s local jurisdictional tax rate. Beginning in the first quarter of 2019, the company used a tax rate of 27 percent and 30 percent for its Canada and Australia Mortgage Insurance segments, respectively, to tax effect their adjustments. Its domestic segments remain at a 21 percent tax rate. In 2018, the company assumed a flat 21 percent tax rate on adjustments for all of its segments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss). These adjustments are also net of the portion attributable to noncontrolling interests and net investment gains (losses) are adjusted for DAC and other intangible amortization and certain benefit reserves.
Prior year amounts have not been re-presented to reflect this revised presentation; however, the previous methodology would not have resulted in a materially different segment-level adjusted operating income (loss).
 
10

In the second quarter of 2019, the company recorded a pre-tax loss of $1 million, net of the portion attributable to noncontrolling interests, related to the early redemption of CAD$100 million of Genworth Canada senior notes originally scheduled to mature in June 2020. The company recorded a pre-tax expense of $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 tables at the end of this press release provide a reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income for the three months ended June 30, 2019 and 2018, as well as for the three months ended March 31, 2019, 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.
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. Sales do not include renewal premiums on policies or contracts written during prior periods. 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. For risk in force in the mortgage insurance businesses in Canada and Australia, the company 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 of 35 percent that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s
 
11

mortgage insurance businesses in Canada and Australia. In Australia, the company has certain risk share arrangements 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 future business and financial performance. Examples of forward-looking statements include statements the company makes relating to the transactions with China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, Oceanwide), the company’s discussions with regulators in connection therewith and any capital contribution resulting therefrom, as well as any statements regarding the potential disposition of the company’s interest in Genworth MI Canada Inc. (Genworth Canada). 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 company’s inability to complete the transaction with Oceanwide in a timely manner or at all; the parties’ inability to obtain regulatory approvals, clearances or extensions, or the possibility that such regulatory approvals may further delay the transaction with Oceanwide or will not be received prior to November 30, 2019 (and either or both of the parties may not be willing to further waive their end date termination rights beyond November 30, 2019) 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 both parties unwilling to proceed with the transaction with Oceanwide or unable to comply with the conditions to existing regulatory approvals; 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 transaction with Oceanwide 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 transaction with Oceanwide; risks relating to any potential disposition of Genworth Canada that are similar to the foregoing, including regulatory, legal or contractual restrictions that may impede	
 
12

 	Genworth’s ability to consummate a disposition of Genworth Canada, the right of Oceanwide to reject the terms of any Genworth Canada sale, in which case the parties will each have the right to terminate the Oceanwide transaction, as well as potential changes in market conditions generally or conditions relating to Genworth Canada’s industry or business that may impede any such sale; the risk that existing and potential legal proceedings may be instituted against the company in connection with the transaction with Oceanwide or the potential sale of Genworth Canada that may delay the transaction with Oceanwide, make it more costly or ultimately preclude it; the risk that the proposed transactions disrupt the company’s current plans and operations as a result of the announcement and consummation of the transactions; certain restrictions during the pendency of the transactions 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 transactions; further rating agency actions and downgrades in the company’s debt or financial strength ratings; changes in applicable laws or regulations; the company’s ability to recognize the anticipated benefits of the transactions; the amount of the costs, fees, expenses and other charges related to the transactions, including costs and expenses related to conditions imposed in connection with regulatory approvals or clearances, which may be material; the risks related to diverting management’s attention from the company’s ongoing business operations; the merger agreement may be terminated in circumstances that would require the company to pay Oceanwide a fee; the company’s ability to attract, recruit, retain and motivate current and prospective employees may be adversely affected; and disruptions and uncertainty relating to the transaction, whether or not it is completed, may harm the company’s relationships with its employees, customers, distributors, vendors or other business partners, and may result in a negative impact on the company’s business;	
 
 	•	 	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 obligations, cost savings, ratings and capital); 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; and 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 in the future to its assumptions, methodologies or otherwise in connection with periodic or other reviews); risks related to the impact of the company’s annual review of assumptions and methodologies relating to its long term care insurance claim reserves and margin, including risks that additional information obtained in the future or other changes to assumptions or methodologies materially affect the company’s margins; 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); 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 annual review 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; interest rates and changes in rates have adversely impacted, and may continue to materially adversely	
 
13

 	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 international 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 and insurance, regulatory or corporate law restrictions; adverse change in regulatory requirements, including risk-based capital; changes in regulations adversely affecting the company’s international operations; inability to continue to maintain the private mortgage insurer eligibility requirements (PMIERs); inability of the company’s U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements; the influence of Federal 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; inability to continue to implement actions to mitigate the impact of statutory reserve requirements; impact of additional regulations pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act; 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 under an additional secured term loan or credit facility); 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; reliance on, and loss of, key customer or distribution relationships; competition, including in the company’s mortgage insurance businesses from government and government-owned and government-sponsored enterprises (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 associated benefit reductions sufficiently, and in a timely manner, on in force long term care insurance policies, and charge higher premiums on policies, in each case, as currently anticipated and as may be required from time to time in the future (including as a result of the company’s failure to obtain any necessary regulatory approvals or unwillingness or inability of policyholders to pay increased premiums and/or accept reduced benefits), including to offset any impact on the company’s long term care insurance margins; availability, affordability and adequacy of reinsurance to protect the company against losses; inability to realize anticipated benefits of the company’s rescissions, curtailments, loan modifications or other similar programs in its mortgage insurance businesses; premiums for the significant portion of the company’s mortgage insurance risk in force with high loan-to-value ratios may not be sufficient to compensate the company for the greater risks associated with those policies; decreases in the volume	
 
14

 	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; the possibility that in certain circumstances the company will be obligated to make payments to General Electric Company (GE) under the tax matters agreement with GE even if its corresponding tax savings are never realized and payments could be accelerated in the event of certain changes in control; and provisions of the company’s certificate of incorporation and bylaws and the tax matters agreement with GE may discourage takeover attempts and business combinations that stockholders might consider in their best interests; and	
 
 	•	 	risks relating to the company’s common stock including: the continued suspension of payment of dividends; and stock price fluctuations.	
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
# # #
Contact Information :
 
Investors:                     investorinfo@genworth.com		
 
Media:	                        Julie Westermann, 804 662.2423	
                                     julie.westermann@genworth.com
 
15

Condensed Consolidated Statements of Income
(Amounts in millions, except per share amounts)
(Unaudited)

 	  	Three months ended	 	 	Three months ended	 	
 	  	June 30,	 	 	March 31,	 	
 	  	2019	 	 	2018	 	 	2019	 	
Revenues:	  				 				 				
Premiums	  	$	1,126		 	$	1,136		 	$	1,114		
Net investment income	  	 	852		 	 	828		 	 	829		
Net investment gains (losses)	  	 	(45	) 	 	 	(14	) 	 	 	74		
Policy fees and other income	  	 	223		 	 	209		 	 	187		
	  	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	2,156		 	 	2,159		 	 	2,204		
	  	 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses:	  				 				 				
Benefits and other changes in policy reserves	  	 	1,270		 	 	1,205		 	 	1,301		
Interest credited	  	 	146		 	 	152		 	 	147		
Acquisition and operating expenses, net of deferrals	  	 	247		 	 	253		 	 	251		
Amortization of deferred acquisition costs and intangibles	  	 	95		 	 	112		 	 	91		
Interest expense	  	 	73		 	 	77		 	 	72		
	  	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,831		 	 	1,799		 	 	1,862		
	  	 	 	 	 	 	 	 	 	 	 	 	
Income before income taxes	  	 	325		 	 	360		 	 	342		
Provision for income taxes	  	 	107		 	 	111		 	 	112		
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	218		 	 	249		 	 	230		
Less: net income attributable to noncontrolling interests	  	 	50		 	 	59		 	 	56		
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income available to Genworth Financial, Inc.‘s common stockholders	  	$	168		 	$	190		 	$	174		
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income available to Genworth Financial, Inc.‘s common stockholders per share:	  				 				 				
Basic	  	$	0.33		 	$	0.38		 	$	0.35		
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.33		 	$	0.38		 	$	0.34		
	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average common shares outstanding:	  				 				 				
Basic	  	 	503.4		 	 	500.6		 	 	501.2		
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	 	508.7		 	 	502.6		 	 	508.6		

16

Reconciliation of Net Income to Adjusted Operating Income
(Amounts in millions, except per share amounts)
(Unaudited)

 	  	Three
months ended	 	 	Three
months ended	 	
 	  	June 30,	 	 	March 31,	 	
 	  	2019	 	 	2018	 	 	2019	 	
Net income	  	$	218		 	$	249		 	$	230		
Less: net income attributable to noncontrolling interests	  	 	50		 	 	59		 	 	56		
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income available to Genworth Financial, Inc.‘s common stockholders	  	 	168		 	 	190		 	 	174		
Adjustments to net income available to Genworth Financial, Inc.‘s common stockholders:	  				 				 				
Net investment (gains) losses, net 11  	  	 	43		 	 	12		 	 	(71	) 	
(Gains) losses on early extinguishment of debt, net 12  	  	 	1		 	 	—  		 	 	—  		
Expenses related to restructuring	  	 	—  		 	 	—  		 	 	4		
Taxes on adjustments	  	 	(8	) 	 	 	(2	) 	 	 	14		
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income	  	$	204		 	$	200		 	$	121		
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income (loss):	  				 				 				
U.S. Mortgage Insurance segment	  	$	147		 	$	137		 	$	124		
Canada Mortgage Insurance segment	  	 	41		 	 	46		 	 	41		
Australia Mortgage Insurance segment	  	 	13		 	 	22		 	 	14		
U.S. Life Insurance segment:	  				 				 				
Long Term Care Insurance	  	 	37		 	 	22		 	 	(20	) 	
Life Insurance	  	 	10		 	 	4		 	 	(2	) 	
Fixed Annuities	  	 	19		 	 	31		 	 	17		
	  	 	 	 	 	 	 	 	 	 	 	 	
Total U.S. Life Insurance segment	  	 	66		 	 	57		 	 	(5	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Runoff segment	  	 	9		 	 	13		 	 	20		
Corporate and Other	  	 	(72	) 	 	 	(75	) 	 	 	(73	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income	  	$	204		 	$	200		 	$	121		
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income available to Genworth Financial, Inc.‘s common stockholders per share:	  				 				 				
Basic	  	$	0.33		 	$	0.38		 	$	0.35		
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.33		 	$	0.38		 	$	0.34		
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income per share:	  				 				 				
Basic	  	$	0.40		 	$	0.40		 	$	0.24		
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.40		 	$	0.40		 	$	0.24		
	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average common shares outstanding:	  				 				 				
Basic	  	 	503.4		 	 	500.6		 	 	501.2		
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	 	508.7		 	 	502.6		 	 	508.6		

11  	For the three months ended June 30, 2019, June 30, 2018 and March 31, 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million, $(1) million and $(2) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $1 million, $(1) million and $5 million, respectively.	
12  	For the three months ended June 30, 2019, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million.	
 
17

Condensed Consolidated Balance Sheets
(Amounts in millions)

 	  	June 30,	 	 	December 31,	 	
 	  	2019	 	 	2018	 	
 	  	(Unaudited)	 	 	 	 	
Assets	  				 				
Cash, cash equivalents, restricted cash and invested assets	  	$	77,612		 	$	72,966		
Deferred acquisition costs	  	 	2,105		 	 	3,263		
Intangible assets and goodwill	  	 	244		 	 	347		
Reinsurance recoverable	  	 	17,211		 	 	17,278		
Deferred tax and other assets	  	 	947		 	 	1,210		
Separate account assets	  	 	6,187		 	 	5,859		
	  	 	 	 	 	 	 	 	
Total assets	  	$	104,306		 	$	100,923		
	  	 	 	 	 	 	 	 	
Liabilities and equity	  				 				
Liabilities:	  				 				
Future policy benefits	  	$	39,583		 	$	37,940		
Policyholder account balances	  	 	22,673		 	 	22,968		
Liability for policy and contract claims	  	 	10,677		 	 	10,379		
Unearned premiums	  	 	3,488		 	 	3,546		
Deferred tax and other liabilities	  	 	1,751		 	 	1,706		
Non-recourse funding obligations	  	 	311		 	 	311		
Long-term borrowings	  	 	4,044		 	 	4,025		
Separate account liabilities	  	 	6,187		 	 	5,859		
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	88,714		 	 	86,734		
	  	 	 	 	 	 	 	 	
Equity:	  				 				
Common stock	  	 	1		 	 	1		
Additional paid-in capital	  	 	11,983		 	 	11,987		
	  	 	 	 	 	 	 	 	
Accumulated other comprehensive income (loss):	  				 				
Net unrealized investment gains (losses):	  				 				
Net unrealized gains (losses) on securities not other-than-temporarily impaired	  	 	1,294		 	 	585		
Net unrealized gains (losses) on other-than-temporarily impaired securities	  	 	11		 	 	10		
	  	 	 	 	 	 	 	 	
Net unrealized investment gains (losses)	  	 	1,305		 	 	595		
Derivatives qualifying as hedges	  	 	1,983		 	 	1,781		
Foreign currency translation and other adjustments	  	 	(275	) 	 	 	(332	) 	
	  	 	 	 	 	 	 	 	
Total accumulated other comprehensive income (loss)	  	 	3,013		 	 	2,044		
Retained earnings	  	 	1,460		 	 	1,118		
Treasury stock, at cost	  	 	(2,700	) 	 	 	(2,700	) 	
	  	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.‘s stockholders’ equity	  	 	13,757		 	 	12,450		
Noncontrolling interests	  	 	1,835		 	 	1,739		
	  	 	 	 	 	 	 	 	
Total equity	  	 	15,592		 	 	14,189		
	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	104,306		 	$	100,923		

18

Impact of Foreign Exchange on Adjusted Operating Income and Flow New Insurance Written 13
Three months ended June 30, 2019
									
 	  	Percentages
Including Foreign
Exchange	 	 	Percentages
Excluding Foreign
Exchange 14	 	
Canada Mortgage Insurance (MI):	  				 				
Adjusted operating income	  	 	(11	)% 	 	 	(7	)% 	
Flow new insurance written	  	 	5	% 	 	 	11	% 	
Flow new insurance written (2Q19 vs. 1Q19)	  	 	77	% 	 	 	77	% 	
			
Australia MI:	  				 				
Adjusted operating income	  	 	(41	)% 	 	 	(36	)% 	
Flow new insurance written	  	 	—  	% 	 	 	8	% 	
Flow new insurance written (2Q19 vs. 1Q19)	  	 	9	% 	 	 	12	% 	

13  	All percentages are comparing the second quarter of 2019 to the second quarter of 2018 unless otherwise stated.	
14  	The impact of foreign exchange was calculated using the comparable prior period exchange rates.	
 
19

Reconciliation of Reported Yield to Core Yield

 	  	Three
months ended	 	
 	  	June 30,
2019	 	 	March 31,
2019	 	
(Assets - amounts in billions)	  				 				
Reported Total Invested Assets and Cash	  	$	77.0	 	 	$	74.4	 	
Subtract:	  				 				
Securities lending	  	 	0.1	 	 	 	0.1	 	
Unrealized gains (losses)	  	 	5.9	 	 	 	3.8	 	
	  	 	 	 	 	 	 	 	
Adjusted End of Period Invested Assets and Cash	  	$	71.0	 	 	$	70.5	 	
	  	 	 	 	 	 	 	 	
Average Invested Assets and Cash Used in Reported Yield Calculation	  	$	70.8	 	 	$	70.4	 	
Subtract:	  				 				
Restricted commercial mortgage loans related to a securitization entity 15	  	 	—  	 	 	 	0.1	 	
	  	 	 	 	 	 	 	 	
Average Invested Assets and Cash Used in Core Yield Calculation	  	$	70.8	 	 	$	70.3	 	
	  	 	 	 	 	 	 	 	
(Income - amounts in millions)	  				 				
Reported Net Investment Income	  	$	852	 	 	$	829	 	
Subtract:	  				 				
Bond calls and commercial mortgage loan prepayments	  	 	7	 	 	 	6	 	
Other non-core items 16	  	 	7	 	 	 	2	 	
Restricted commercial mortgage loans related to a securitization entity 15	  	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	
Core Net Investment Income	  	$	838	 	 	$	821	 	
	  	 	 	 	 	 	 	 	
Reported Yield	  	 	4.82	% 	 	 	4.71	% 	
	  	 	 	 	 	 	 	 	
Core Yield	  	 	4.74	% 	 	 	4.67	% 	

15  	Represents the incremental assets and investment income related to restricted commercial mortgage loans.	
16  	Includes cost basis adjustments on structured securities and various other immaterial items.	
 
20

Table of Contents
Exhibit 99.2

Table of Contents
 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019

	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 and Sales—U.S. Mortgage Insurance Segment	  	 	16-22	 		
Adjusted Operating Income and Sales—Canada Mortgage Insurance Segment	  	 	24-27	 		
Adjusted Operating Income and Sales—Australia Mortgage Insurance Segment	  	 	29-32	 		
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment	  	 	34-37	 		
Adjusted Operating Income (Loss)—Runoff Segment	  	 	39	 		
Adjusted Operating Loss—Corporate and Other Activities	  	 	41	 		
			
Additional Financial Data	  					
Investments Summary	  	 	43	 		
Fixed Maturity Securities Summary	  	 	44	 		
General Account U.S. GAAP Net Investment Income Yields	  	 	45	 		
Net Investment Gains (Losses), Net—Detail	  	 	46	 		
			
Reconciliations of Non-GAAP Measures	  					
Reconciliation of Operating Return On Equity (ROE)	  	 	48	 		
Reconciliation of Core Yield	  	 	49	 		
			
Corporate Information	  					
Financial Strength Ratings	  	 	51	 		
Note:
Unless otherwise stated, all references in this financial supplement to 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 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

Table of Contents
 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Dear Investor,
Thank you for your continued interest in Genworth Financial, Inc.
Regards,
Investor Relations
InvestorInfo@genworth.com
 
3

Table of Contents
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
 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) 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 impairments, 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.
In the first quarter of 2019, the company revised how it taxes the adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) to align the tax rate used in the reconciliation to each segment’s local jurisdictional tax rate. Beginning in the first quarter of 2019, the company used a tax rate of 27% and 30% for its Canada and Australia Mortgage Insurance segments, respectively, to tax effect their adjustments. Its domestic segments remain at a 21% tax rate. In 2018, the company assumed a flat 21% tax rate on adjustments for all of its segments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss). These adjustments are also net of the portion attributable to noncontrolling interests and net investment gains (losses) are adjusted for DAC and other intangible amortization and certain benefit reserves (see page 46).
Prior year amounts have not been re-presented to reflect this revised presentation; however, the previous methodology would not have resulted in a materially different segment-level adjusted operating income (loss).
In the second quarter of 2019, the company recorded a pre-tax loss of $1 million, net of the portion attributable to noncontrolling interests, related to the early redemption of CAD$100 million of Genworth MI Canada Inc.’s senior notes originally scheduled to mature in June 2020. The company recorded a pre-tax expense of $4 million in the first quarter of 2019 and $2 million in the third quarter of 2018 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 other than fees incurred during the fourth quarter of 2018 related to Genworth Holdings, Inc.’s bond consent solicitation of $6 million for broker, advisor and investment banking fees.
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 48 and 49 of this financial supplement.
 
4

Table of Contents
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
 
 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. Sales do not include renewal premiums on policies or contracts written during prior periods. 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. For risk in-force in the mortgage insurance businesses in Canada and Australia, the company 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 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 businesses in Canada and Australia. In Australia, the company 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. 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

Table of Contents
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
 
 Financial Highlights
(amounts in millions, except per share data)

	Balance Sheet Data	  	June 30,
2019	 	 	March 31,
2019	 	 	December 31,
2018	 	 	September 30,
2018	 	 	June 30,
2018	 	
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	  	$	10,744	 	 	$	10,582	 	 	$	10,406	 	 	$	10,731	 	 	$	10,583	 		
Total accumulated other comprehensive income	  	 	3,013	 	 	 	2,492	 	 	 	2,044	 	 	 	2,067	 	 	 	2,327	 		
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Total Genworth Financial, Inc.’s stockholders’ equity	  	$	13,757	 	 	$	13,074	 	 	$	12,450	 	 	$	12,798	 	 	$	12,910	 		
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Book value per share	  	$	27.32	 	 	$	25.98	 	 	$	24.86	 	 	$	25.56	 	 	$	25.78	 		
Book value per share, excluding accumulated other comprehensive income	  	$	21.34	 	 	$	21.03	 	 	$	20.78	 	 	$	21.43	 	 	$	21.14	 		
Common shares outstanding as of the balance sheet date	  	 	503.5	 	 	 	503.3	 	 	 	500.8	 	 	 	500.8	 	 	 	500.7	 		
			
 	  	Twelve months ended	 		
	Twelve Month Rolling Average ROE	  	June 30,
2019	 	 	March 31,
2019	 	 	December 31,
2018	 	 	September 30,
2018	 	 	June 30,
2018	 	
U.S. GAAP Basis ROE	  	 	1.5	% 	 	 	1.7	% 	 	 	1.1	% 	 	 	7.7	% 	 	 	7.4	% 		
Operating ROE (1)	  	 	1.7	% 	 	 	1.7	% 	 	 	1.7	% 	 	 	7.6	% 	 	 	7.1	% 		
			
 	  	Three months ended	 		
	Quarterly Average ROE	  	June 30,
2019	 	 	March 31,
2019	 	 	December 31,
2018	 	 	September 30,
2018	 	 	June 30,
2018	 	
U.S. GAAP Basis ROE	  	 	6.3	% 	 	 	6.6	% 	 	 	(12.5	)% 	 	 	5.5	% 	 	 	7.2	% 		
Operating ROE (1)	  	 	7.7	% 	 	 	4.6	% 	 	 	(11.0	)% 	 	 	5.4	% 	 	 	7.6	% 		

	Basic and Diluted Shares	  	Three months ended
June 30, 2019	 	  	Six months ended
June 30, 2019	 	
Weighted-average common shares used in basic earnings per share calculations	  	 	503.4	 	  	 	502.3	 		
Potentially dilutive securities:	  				  					
Stock options, restricted stock units and stock appreciation rights	  	 	5.3	 	  	 	6.4	 		
	  	 	 	 	  	 	 	 		
Weighted-average common shares used in diluted earnings per share calculations	  	 	508.7	 	  	 	508.7	 		

(1)  	See page 48 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.	
 
6

Table of Contents
Consolidated Quarterly Results

 
7

Table of Contents
 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Consolidated Net Income (Loss) by Quarter
(amounts in millions, except per share amounts)

 	  	2019	 	  	2018	 	
 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	 	3Q	 	  	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				  				  				 				  				 				 				
Premiums	  	$	1,126	 	  	$	1,114	 	  	$	2,240	 	  	$	1,121	 	 	$	1,122	 	  	$	1,136	 	 	$	1,140	 	 	$	4,519	 	
Net investment income	  	 	852	 	  	 	829	 	  	 	1,681	 	  	 	815	 	 	 	815	 	  	 	828	 	 	 	804	 	 	 	3,262	 	
Net investment gains (losses)	  	 	(45	) 	  	 	74	 	  	 	29	 	  	 	(114	) 	 	 	13	 	  	 	(14	) 	 	 	(31	) 	 	 	(146	) 	
Policy fees and other income	  	 	223	 	  	 	187	 	  	 	410	 	  	 	191	 	 	 	193	 	  	 	209	 	 	 	202	 	 	 	795	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	2,156	 	  	 	2,204	 	  	 	4,360	 	  	 	2,013	 	 	 	2,143	 	  	 	2,159	 	 	 	2,115	 	 	 	8,430	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				 				  				 				 				
Benefits and other changes in policy reserves	  	 	1,270	 	  	 	1,301	 	  	 	2,571	 	  	 	1,847	 	 	 	1,321	 	  	 	1,205	 	 	 	1,311	 	 	 	5,684	 	
Interest credited	  	 	146	 	  	 	147	 	  	 	293	 	  	 	152	 	 	 	151	 	  	 	152	 	 	 	156	 	 	 	611	 	
Acquisition and operating expenses, net of deferrals	  	 	247	 	  	 	251	 	  	 	498	 	  	 	261	 	 	 	243	 	  	 	253	 	 	 	240	 	 	 	997	 	
Amortization of deferred acquisition costs and intangibles	  	 	95	 	  	 	91	 	  	 	186	 	  	 	92	 	 	 	83	 	  	 	112	 	 	 	104	 	 	 	391	 	
Interest expense	  	 	73	 	  	 	72	 	  	 	145	 	  	 	74	 	 	 	72	 	  	 	77	 	 	 	76	 	 	 	299	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,831	 	  	 	1,862	 	  	 	3,693	 	  	 	2,426	 	 	 	1,870	 	  	 	1,799	 	 	 	1,887	 	 	 	7,982	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) BEFORE INCOME TAXES	  	 	325	 	  	 	342	 	  	 	667	 	  	 	(413	) 	 	 	273	 	  	 	360	 	 	 	228	 	 	 	448	 	
Provision (benefit) for income taxes	  	 	107	 	  	 	112	 	  	 	219	 	  	 	(86	) 	 	 	63	 	  	 	111	 	 	 	63	 	 	 	151	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	218	 	  	 	230	 	  	 	448	 	  	 	(327	) 	 	 	210	 	  	 	249	 	 	 	165	 	 	 	297	 	
Less: net income attributable to noncontrolling interests	  	 	50	 	  	 	56	 	  	 	106	 	  	 	2	 	 	 	64	 	  	 	59	 	 	 	53	 	 	 	178	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	$	168	 	  	$	174	 	  	$	342	 	  	$	(329	) 	 	$	146	 	  	$	190	 	 	$	112	 	 	$	119	 	

Earnings (Loss) Per Share Data:	  				  				  				  				 				  				 				 				
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share	  				  				  				  				 				  				 				 				
Basic	  	$	0.33	 	  	$	0.35	 	  	$	0.68	 	  	$	(0.66	) 	 	$	0.29	 	  	$	0.38	 	 	$	0.22	 	 	$	0.24	 	
Diluted	  	$	0.33	 	  	$	0.34	 	  	$	0.67	 	  	$	(0.66	) 	 	$	0.29	 	  	$	0.38	 	 	$	0.22	 	 	$	0.24	 	
Weighted-average common shares outstanding	  				  				  				  				 				  				 				 				
Basic	  	 	503.4	 	  	 	501.2	 	  	 	502.3	 	  	 	500.8	 	 	 	500.7	 	  	 	500.6	 	 	 	499.6	 	 	 	500.4	 	
Diluted (1)	  	 	508.7	 	  	 	508.6	 	  	 	508.7	 	  	 	500.8	 	 	 	503.3	 	  	 	502.6	 	 	 	502.7	 	 	 	504.2	 	

(1)  	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 net loss for the three months ended December 31, 2018, 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 December 31, 2018, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 7.6 million would have been antidilutive to the calculation. If the company had not incurred a net loss for the three months ended December 31, 2018, dilutive potential weighted-average common shares outstanding would have been 508.4 million.    	
 
8

Table of Contents
 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)
(amounts in millions, except per share amounts)

 	  	2019	 	 	2018	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
NET INCOME (LOSS)	  	$	218	 	  	$	230	 	 	$	448	 	 	$	(327	) 	 	$	210	 	 	$	249	 	 	$	165	 	 	$	297	 	
Less: net income attributable to noncontrolling interests	  	 	50	 	  	 	56	 	 	 	106	 	 	 	2	 	 	 	64	 	 	 	59	 	 	 	53	 	 	 	178	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	 	168	 	  	 	174	 	 	 	342	 	 	 	(329	) 	 	 	146	 	 	 	190	 	 	 	112	 	 	 	119	 	
ADJUSTMENTS TO NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:	  			 	  				 				 				 				 				 				 				
Net investment (gains) losses, net (1)	  	 	43	 	  	 	(71	) 	 	 	(28	) 	 	 	42	 	 	 	(3	) 	 	 	12	 	 	 	17	 	 	 	68	 	
(Gains) losses on early extinguishment of debt, net (2)	  	 	1	 	  	 	—  	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Expenses related to restructuring	  	 	—  	 	  	 	4	 	 	 	4	 	 	 	—  	 	 	 	2	 	 	 	—  	 	 	 	—  	 	 	 	2	 	
Fees associated with bond consent solicitation	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	6	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	6	 	
Taxes on adjustments	  	 	(8	) 	  	 	14	 	 	 	6	 	 	 	(10	) 	 	 	—  	 	 	 	(2	) 	 	 	(4	) 	 	 	(16	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	204	 	  	$	121	 	 	$	325	 	 	$	(291	) 	 	$	145	 	 	$	200	 	 	$	125	 	 	$	179	 	

ADJUSTED OPERATING INCOME (LOSS):	  			 	  				 				 				 				 				 				 				
U.S. Mortgage Insurance segment	  	$	147	 	  	$	124	 	 	$	271	 	 	$	124	 	 	$	118	 	 	$	137	 	 	$	111	 	 	$	490	 	
Canada Mortgage Insurance segment	  	 	41	 	  	 	41	 	 	 	82	 	 	 	48	 	 	 	44	 	 	 	46	 	 	 	49	 	 	 	187	 	
Australia Mortgage Insurance segment	  	 	13	 	  	 	14	 	 	 	27	 	 	 	18	 	 	 	17	 	 	 	22	 	 	 	19	 	 	 	76	 	
U.S. Life Insurance segment:	  			 	  				 				 				 				 				 				 				
Long-Term Care Insurance	  	 	37	 	  	 	(20	) 	 	 	17	 	 	 	(314	) 	 	 	(24	) 	 	 	22	 	 	 	(32	) 	 	 	(348	) 	
Life Insurance	  	 	10	 	  	 	(2	) 	 	 	8	 	 	 	(108	) 	 	 	(2	) 	 	 	4	 	 	 	(1	) 	 	 	(107	) 	
Fixed Annuities	  	 	19	 	  	 	17	 	 	 	36	 	 	 	(3	) 	 	 	23	 	 	 	31	 	 	 	28	 	 	 	79	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total U.S. Life Insurance segment	  	 	66	 	  	 	(5	) 	 	 	61	 	 	 	(425	) 	 	 	(3	) 	 	 	57	 	 	 	(5	) 	 	 	(376	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Runoff segment	  	 	9	 	  	 	20	 	 	 	29	 	 	 	(2	) 	 	 	14	 	 	 	13	 	 	 	10	 	 	 	35	 	
Corporate and Other	  	 	(72	) 	  	 	(73	) 	 	 	(145	) 	 	 	(54	) 	 	 	(45	) 	 	 	(75	) 	 	 	(59	) 	 	 	(233	) 	

ADJUSTED OPERATING INCOME (LOSS)	  	$	204	 	  	$	121	 	 	$	325	 	 	$	(291	) 	 	$	145	 	 	$	200	 	 	$	125	 	 	$	179	 	

									
Earnings (Loss) Per Share Data:	  				  				 				 				 				 				 				 				
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share	  				  				 				 				 				 				 				 				
Basic	  	$	0.33	 	  	$	0.35	 	 	$	0.68	 	 	$	(0.66	) 	 	$	0.29	 	 	$	0.38	 	 	$	0.22	 	 	$	0.24	 	
Diluted	  	$	0.33	 	  	$	0.34	 	 	$	0.67	 	 	$	(0.66	) 	 	$	0.29	 	 	$	0.38	 	 	$	0.22	 	 	$	0.24	 	
Adjusted operating income (loss) per share	  				  				 				 				 				 				 				 				
Basic	  	$	0.40	 	  	$	0.24	 	 	$	0.65	 	 	$	(0.58	) 	 	$	0.29	 	 	$	0.40	 	 	$	0.25	 	 	$	0.36	 	
Diluted	  	$	0.40	 	  	$	0.24	 	 	$	0.64	 	 	$	(0.58	) 	 	$	0.29	 	 	$	0.40	 	 	$	0.25	 	 	$	0.36	 	
Weighted-average common shares outstanding	  				  				 				 				 				 				 				 				
Basic	  	 	503.4	 	  	 	501.2	 	 	 	502.3	 	 	 	500.8	 	 	 	500.7	 	 	 	500.6	 	 	 	499.6	 	 	 	500.4	 	
Diluted (3)	  	 	508.7	 	  	 	508.6	 	 	 	508.7	 	 	 	500.8	 	 	 	503.3	 	 	 	502.6	 	 	 	502.7	 	 	 	504.2	 	

(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 46 for reconciliation).	
(2)  	For the three months ended June 30, 2019, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million.	
(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 net loss for the three months ended December 31, 2018, 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 December 31, 2018, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 7.6 million would have been antidilutive to the calculation. If the company had not incurred a net loss for the three months ended December 31, 2018, dilutive potential weighted-average common shares outstanding would have been 508.4 million.	
 
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Table of Contents
 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Consolidated Balance Sheets
(amounts in millions)

 	  	June 30,
2019	 	  	March 31,
2019	 	  	December 31,
2018	 	  	September 30,
2018	 	  	June 30,
2018	 	
ASSETS	  			 	  				  				  				  				
Investments:	  			 	  				  				  				  				
Fixed maturity securities available-for-sale, at fair value	  	$	63,774	 	  	$	61,360	 	  	$	59,661	 	  	$	59,404	 	  	$	60,032	 	
Equity securities, at fair value	  	 	644	 	  	 	635	 	  	 	655	 	  	 	783	 	  	 	758	 	
Commercial mortgage loans (1)	  	 	7,019	 	  	 	6,988	 	  	 	6,749	 	  	 	6,655	 	  	 	6,570	 	
Policy loans	  	 	2,076	 	  	 	1,994	 	  	 	1,861	 	  	 	1,859	 	  	 	1,872	 	
Other invested assets	  	 	1,535	 	  	 	1,208	 	  	 	1,188	 	  	 	1,354	 	  	 	1,650	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total investments	  	 	75,048	 	  	 	72,185	 	  	 	70,114	 	  	 	70,055	 	  	 	70,882	 	
Cash, cash equivalents and restricted cash	  	 	1,938	 	  	 	2,221	 	  	 	2,177	 	  	 	2,505	 	  	 	2,243	 	
Accrued investment income	  	 	626	 	  	 	726	 	  	 	675	 	  	 	657	 	  	 	602	 	
Deferred acquisition costs	  	 	2,105	 	  	 	2,219	 	  	 	3,263	 	  	 	3,336	 	  	 	3,086	 	
Intangible assets and goodwill	  	 	244	 	  	 	265	 	  	 	347	 	  	 	355	 	  	 	354	 	
Reinsurance recoverable	  	 	17,211	 	  	 	17,257	 	  	 	17,278	 	  	 	17,351	 	  	 	17,385	 	
Other assets	  	 	564	 	  	 	532	 	  	 	474	 	  	 	467	 	  	 	574	 	
Deferred tax asset	  	 	383	 	  	 	573	 	  	 	736	 	  	 	650	 	  	 	601	 	
Separate account assets	  	 	6,187	 	  	 	6,210	 	  	 	5,859	 	  	 	6,745	 	  	 	6,750	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total assets	  	$	104,306	 	  	$	102,188	 	  	$	100,923	 	  	$	102,121	 	  	$	102,477	 	

(1)  	Included restricted commercial mortgage loans of $56 million, $59 million, $62 million, $87 million and $90 million, respectively, as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018 related to a securitization entity.	
 
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Table of Contents
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Consolidated Balance Sheets
(amounts in millions)

 	  	June 30,
2019	 	  	March 31,
2019	 	 	December 31,
2018	 	 	September 30,
2018	 	 	June 30,
2018	 	
LIABILITIES AND EQUITY	  			 	  				 				 				 				
Liabilities:	  			 	  				 				 				 				
Future policy benefits	  	$	39,583	 	  	$	38,369	 	 	$	37,940	 	 	$	38,018	 	 	$	37,913	 	
Policyholder account balances	  	 	22,673	 	  	 	22,651	 	 	 	22,968	 	 	 	22,993	 	 	 	23,366	 	
Liability for policy and contract claims	  	 	10,677	 	  	 	10,536	 	 	 	10,379	 	 	 	9,844	 	 	 	9,665	 	
Unearned premiums	  	 	3,488	 	  	 	3,482	 	 	 	3,546	 	 	 	3,668	 	 	 	3,669	 	
Other liabilities	  	 	1,723	 	  	 	1,682	 	 	 	1,682	 	 	 	1,830	 	 	 	1,965	 	
Borrowings related to a securitization entity	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	20	 	 	 	28	 	
Non-recourse funding obligations	  	 	311	 	  	 	311	 	 	 	311	 	 	 	310	 	 	 	310	 	
Long-term borrowings	  	 	4,044	 	  	 	4,035	 	 	 	4,025	 	 	 	4,051	 	 	 	4,047	 	
Deferred tax liability	  	 	28	 	  	 	30	 	 	 	24	 	 	 	21	 	 	 	23	 	
Separate account liabilities	  	 	6,187	 	  	 	6,210	 	 	 	5,859	 	 	 	6,745	 	 	 	6,750	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	88,714	 	  	 	87,306	 	 	 	86,734	 	 	 	87,500	 	 	 	87,736	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity:	  			 	  				 				 				 				
Common stock	  	 	1	 	  	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	
Additional paid-in capital	  	 	11,983	 	  	 	11,989	 	 	 	11,987	 	 	 	11,983	 	 	 	11,981	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accumulated other comprehensive income (loss):	  			 	  				 				 				 				
Net unrealized investment gains (losses):	  			 	  				 				 				 				
Net unrealized gains (losses) on securities not other-than-temporarily impaired	  	 	1,294	 	  	 	932	 	 	 	585	 	 	 	598	 	 	 	726	 	
Net unrealized gains (losses) on other-than-temporarily impaired securities	  	 	11	 	  	 	11	 	 	 	10	 	 	 	10	 	 	 	10	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net unrealized investment gains (losses)	  	 	1,305	 	  	 	943	 	 	 	595	 	 	 	608	 	 	 	736	 	
Derivatives qualifying as hedges	  	 	1,983	 	  	 	1,850	 	 	 	1,781	 	 	 	1,717	 	 	 	1,863	 	
Foreign currency translation and other adjustments	  	 	(275	) 	  	 	(301	) 	 	 	(332	) 	 	 	(258	) 	 	 	(272	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total accumulated other comprehensive income	  	 	3,013	 	  	 	2,492	 	 	 	2,044	 	 	 	2,067	 	 	 	2,327	 	
Retained earnings	  	 	1,460	 	  	 	1,292	 	 	 	1,118	 	 	 	1,447	 	 	 	1,301	 	
Treasury stock, at cost	  	 	(2,700	) 	  	 	(2,700	) 	 	 	(2,700	) 	 	 	(2,700	) 	 	 	(2,700	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	13,757	 	  	 	13,074	 	 	 	12,450	 	 	 	12,798	 	 	 	12,910	 	
Noncontrolling interests	  	 	1,835	 	  	 	1,808	 	 	 	1,739	 	 	 	1,823	 	 	 	1,831	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	15,592	 	  	 	14,882	 	 	 	14,189	 	 	 	14,621	 	 	 	14,741	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	104,306	 	  	$	102,188	 	 	$	100,923	 	 	$	102,121	 	 	$	102,477	 	

 
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Table of Contents
 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Consolidated Balance Sheet by Segment
(amounts in millions)

 	 	June 30, 2019	 	
 	 	U.S.
Mortgage
Insurance	 	 	Canada
Mortgage
Insurance	 	 	Australia
Mortgage
Insurance	 	 	U.S. Life
Insurance	 	 	Runoff	 	 	Corporate and
Other (1) 	 	 	Total	 	
ASSETS	 				 				 				 				 				 				 				
Cash and investments	 	$	3,846	 	 	$	5,060	 	 	$	2,303	 	 	$	62,499	 	 	$	2,896	 	 	$	1,008	 	 	$	77,612	 	
Deferred acquisition costs and intangible assets	 	 	50	 	 	 	140	 	 	 	65	 	 	 	1,911	 	 	 	173	 	 	 	10	 	 	 	2,349	 	
Reinsurance recoverable	 	 	—  	 	 	 	—  	 	 	 	2	 	 	 	16,474	 	 	 	735	 	 	 	—  	 	 	 	17,211	 	
Deferred tax and other assets	 	 	81	 	 	 	72	 	 	 	154	 	 	 	118	 	 	 	27	 	 	 	495	 	 	 	947	 	
Separate account assets	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	6,187	 	 	 	—  	 	 	 	6,187	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	$	3,977	 	 	$	5,272	 	 	$	2,524	 	 	$	81,002	 	 	$	10,018	 	 	$	1,513	 	 	$	104,306	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	 				 				 				 				 				 				 				
Liabilities:	 				 				 				 				 				 				 				
Future policy benefits	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	39,581	 	 	$	2	 	 	$	—  	 	 	$	39,583	 	
Policyholder account balances	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	19,434	 	 	 	3,239	 	 	 	—  	 	 	 	22,673	 	
Liability for policy and contract claims	 	 	254	 	 	 	91	 	 	 	209	 	 	 	10,102	 	 	 	13	 	 	 	8	 	 	 	10,677	 	
Unearned premiums	 	 	419	 	 	 	1,571	 	 	 	997	 	 	 	497	 	 	 	4	 	 	 	—  	 	 	 	3,488	 	
Non-recourse funding obligations	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	311	 	 	 	—  	 	 	 	—  	 	 	 	311	 	
Deferred tax and other liabilities	 	 	79	 	 	 	183	 	 	 	185	 	 	 	560	 	 	 	52	 	 	 	692	 	 	 	1,751	 	
Borrowings and capital securities	 	 	—  	 	 	 	333	 	 	 	140	 	 	 	—  	 	 	 	—  	 	 	 	3,571	 	 	 	4,044	 	
Separate account liabilities	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	6,187	 	 	 	—  	 	 	 	6,187	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	752	 	 	 	2,178	 	 	 	1,531	 	 	 	70,485	 	 	 	9,497	 	 	 	4,271	 	 	 	88,714	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity:	 				 				 				 				 				 				 				
Allocated equity, excluding accumulated other comprehensive income (loss)	 	 	3,148	 	 	 	1,947	 	 	 	453	 	 	 	7,419	 	 	 	515	 	 	 	(2,738	) 	 	 	10,744	 	
Allocated accumulated other comprehensive income (loss)	 	 	77	 	 	 	(188	) 	 	 	40	 	 	 	3,098	 	 	 	6	 	 	 	(20	) 	 	 	3,013	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	 	 	3,225	 	 	 	1,759	 	 	 	493	 	 	 	10,517	 	 	 	521	 	 	 	(2,758	) 	 	 	13,757	 	
Noncontrolling interests	 	 	—  	 	 	 	1,335	 	 	 	500	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,835	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	 	 	3,225	 	 	 	3,094	 	 	 	993	 	 	 	10,517	 	 	 	521	 	 	 	(2,758	) 	 	 	15,592	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	 	$	3,977	 	 	$	5,272	 	 	$	2,524	 	 	$	81,002	 	 	$	10,018	 	 	$	1,513	 	 	$	104,306	 	

(1)  	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.	
 
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Table of Contents
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Consolidated Balance Sheet by Segment
(amounts in millions)

 	 	March 31, 2019	 	
 	 	U.S.
Mortgage
Insurance	 	 	Canada
Mortgage
Insurance	 	 	Australia
Mortgage
Insurance	 	 	U.S. Life
Insurance	 	 	Runoff	 	 	Corporate and
Other (1) 	 	 	Total	 	
ASSETS	 				 				 				 				 				 				 				
Cash and investments	 	$	3,652	 	 	$	4,935	 	 	$	2,300	 	 	$	61,882	 	 	$	2,918	 	 	$	(555	) 	 	$	75,132	 	
Deferred acquisition costs and intangible assets	 	 	50	 	 	 	137	 	 	 	69	 	 	 	2,029	 	 	 	189	 	 	 	10	 	 	 	2,484	 	
Reinsurance recoverable	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	16,513	 	 	 	740	 	 	 	—  	 	 	 	17,257	 	
Deferred tax and other assets	 	 	106	 	 	 	74	 	 	 	160	 	 	 	195	 	 	 	25	 	 	 	545	 	 	 	1,105	 	
Separate account assets	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	6,210	 	 	 	—  	 	 	 	6,210	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	$	3,808	 	 	$	5,146	 	 	$	2,533	 	 	$	80,619	 	 	$	10,082	 	 	$	—  	 	 	$	102,188	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	 				 				 				 				 				 				 				
Liabilities:	 				 				 				 				 				 				 				
Future policy benefits	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	38,367	 	 	$	2	 	 	$	—  	 	 	$	38,369	 	
Policyholder account balances	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	19,442	 	 	 	3,209	 	 	 	—  	 	 	 	22,651	 	
Liability for policy and contract claims	 	 	280	 	 	 	88	 	 	 	204	 	 	 	9,946	 	 	 	10	 	 	 	8	 	 	 	10,536	 	
Unearned premiums	 	 	421	 	 	 	1,518	 	 	 	1,031	 	 	 	508	 	 	 	4	 	 	 	—  	 	 	 	3,482	 	
Non-recourse funding obligations	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	311	 	 	 	—  	 	 	 	—  	 	 	 	311	 	
Deferred tax and other liabilities	 	 	104	 	 	 	169	 	 	 	177	 	 	 	618	 	 	 	48	 	 	 	596	 	 	 	1,712	 	
Borrowings and capital securities	 	 	—  	 	 	 	324	 	 	 	141	 	 	 	—  	 	 	 	—  	 	 	 	3,570	 	 	 	4,035	 	
Separate account liabilities	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	6,210	 	 	 	—  	 	 	 	6,210	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	805	 	 	 	2,099	 	 	 	1,553	 	 	 	69,192	 	 	 	9,483	 	 	 	4,174	 	 	 	87,306	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity:	 				 				 				 				 				 				 				
Allocated equity, excluding accumulated other comprehensive income (loss)	 	 	2,973	 	 	 	1,960	 	 	 	450	 	 	 	8,726	 	 	 	598	 	 	 	(4,125	) 	 	 	10,582	 	
Allocated accumulated other comprehensive income (loss)	 	 	30	 	 	 	(229	) 	 	 	38	 	 	 	2,701	 	 	 	1	 	 	 	(49	) 	 	 	2,492	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	 	 	3,003	 	 	 	1,731	 	 	 	488	 	 	 	11,427	 	 	 	599	 	 	 	(4,174	) 	 	 	13,074	 	
Noncontrolling interests	 	 	—  	 	 	 	1,316	 	 	 	492	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,808	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	 	 	3,003	 	 	 	3,047	 	 	 	980	 	 	 	11,427	 	 	 	599	 	 	 	(4,174	) 	 	 	14,882	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	 	$	3,808	 	 	$	5,146	 	 	$	2,533	 	 	$	80,619	 	 	$	10,082	 	 	$	—  	 	 	$	102,188	 	

(1)  	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.	
 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Deferred Acquisition Costs Rollforward
(amounts in millions)

 	  	U.S.
Mortgage
Insurance	 	 	Canada
Mortgage
Insurance	 	 	Australia
Mortgage
Insurance	 	 	U.S. Life
Insurance	 	 	Runoff	 	 	Total	 	
Unamortized balance as of March 31, 2019	  	$	28	 	 	$	122	 	 	$	38	 	 	$	3,320	 	 	$	188	 	 	$	3,696	 	
Costs deferred	  	 	3	 	 	 	11	 	 	 	2	 	 	 	2	 	 	 	—  	 	 	 	18	 	
Amortization, net of interest accretion	  	 	(3	) 	 	 	(10	) 	 	 	(3	) 	 	 	(62	) 	 	 	(4	) 	 	 	(82	) 	
Impact of foreign currency translation	  	 	—  	 	 	 	2	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unamortized balance as of June 30, 2019	  	 	28	 	 	 	125	 	 	 	37	 	 	 	3,260	 	 	 	184	 	 	 	3,634	 	
Effect of accumulated net unrealized investment (gains) losses	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1,510	) 	 	 	(19	) 	 	 	(1,529	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of June 30, 2019	  	$	28	 	 	$	125	 	 	$	37	 	 	$	1,750	 	 	$	165	 	 	$	2,105	 	

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U.S. Mortgage Insurance Segment

 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Adjusted Operating Income and Sales—U.S. Mortgage Insurance Segment
(amounts in millions)

 	  	2019	 	  	2018	 	
 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	 	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				 				  				
Premiums	  	$	206	 	  	$	194	 	  	$	400	 	  	$	193	 	  	$	190	 	  	$	184	 	 	$	179	 	  	$	746	 	
Net investment income	  	 	28	 	  	 	28	 	  	 	56	 	  	 	26	 	  	 	23	 	  	 	23	 	 	 	21	 	  	 	93	 	
Net investment gains (losses)	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	
Policy fees and other income	  	 	1	 	  	 	1	 	  	 	2	 	  	 	—  	 	  	 	1	 	  	 	1	 	 	 	—  	 	  	 	2	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Total revenues	  	 	235	 	  	 	223	 	  	 	458	 	  	 	219	 	  	 	214	 	  	 	208	 	 	 	200	 	  	 	841	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				 				  				
Benefits and other changes in policy reserves	  	 	—  	 	  	 	16	 	  	 	16	 	  	 	14	 	  	 	20	 	  	 	(14	) 	 	 	16	 	  	 	15,800	 	
Acquisition and operating expenses, net of deferrals	  	 	44	 	  	 	46	 	  	 	90	 	  	 	44	 	  	 	41	 	  	 	45	 	 	 	39	 	  	 	169	 	
Amortization of deferred acquisition costs and intangibles	  	 	4	 	  	 	4	 	  	 	8	 	  	 	3	 	  	 	4	 	  	 	3	 	 	 	4	 	  	 	14	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	48	 	  	 	66	 	  	 	114	 	  	 	61	 	  	 	65	 	  	 	34	 	 	 	59	 	  	 	219	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
INCOME BEFORE INCOME TAXES	  	 	187	 	  	 	157	 	  	 	344	 	  	 	158	 	  	 	149	 	  	 	174	 	 	 	141	 	  	 	622	 	
Provision for income taxes	  	 	40	 	  	 	33	 	  	 	73	 	  	 	34	 	  	 	31	 	  	 	37	 	 	 	30	 	  	 	132	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
NET INCOME	  	 	147	 	  	 	124	 	  	 	271	 	  	 	124	 	  	 	118	 	  	 	137	 	 	 	111	 	  	 	490	 	
	 								
ADJUSTMENTS TO NET INCOME:	  			 	  				  				  				  				  				 				  				
Net investment (gains) losses	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	
Taxes on adjustments	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME	  	$	147	 	  	$	124	 	  	$	271	 	  	$	124	 	  	$	118	 	  	$	137	 	 	$	111	 	  	$	490	 	

SALES:	  				  				  				  				  				  				 				  				
Flow New Insurance Written (NIW)	  	$	15,800	 	  	$	9,600	 	  	$	25,400	 	  	$	9,300	 	  	$	10,300	 	  	$	11,400	 	 	$	9,000	 	  	$	40,000	 	
 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Flow New Insurance Written Metrics—U.S. Mortgage Insurance Segment
(amounts in millions)

 	 	2019	 	 	2018	 	
 	 	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)	 	$	13,900	 	 	 	88	% 	  	$	8,400	 	  	 	87	% 	 	$	7,900	 	  	 	85	% 	 	$	8,400	 	  	 	82	% 	 	$	9,700	 	  	 	85	% 	 	$	7,300	 	  	 	81	% 	
Single	 	 	1,900	 	 	 	12	 	  	 	1,200	 	  	 	13	 	 	 	1,400	 	  	 	15	 	 	 	1,900	 	  	 	18	 	 	 	1,700	 	  	 	15	 	 	 	1,700	 	  	 	19	 	
	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Total Flow	 	$	15,800	 	 	 	100	% 	  	$	9,600	 	  	 	100	% 	 	$	9,300	 	  	 	100	% 	 	$	10,300	 	  	 	100	% 	 	$	11,400	 	  	 	100	% 	 	$	9,000	 	  	 	100	% 	
	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
FICO Scores	 				 			 	  				  				 				  				 				  				 				  				 				  				
Over 735	 	$	9,200	 	 	 	58	% 	  	$	5,500	 	  	 	57	% 	 	$	5,200	 	  	 	56	% 	 	$	6,000	 	  	 	58	% 	 	$	6,900	 	  	 	60	% 	 	$	5,300	 	  	 	59	% 	
680-735	 	 	5,500	 	 	 	35	 	  	 	3,300	 	  	 	35	 	 	 	3,200	 	  	 	35	 	 	 	3,300	 	  	 	32	 	 	 	3,700	 	  	 	32	 	 	 	3,000	 	  	 	33	 	
660-679 (2)	 	 	600	 	 	 	4	 	  	 	400	 	  	 	4	 	 	 	500	 	  	 	5	 	 	 	500	 	  	 	5	 	 	 	400	 	  	 	4	 	 	 	400	 	  	 	5	 	
620-659	 	 	500	 	 	 	3	 	  	 	400	 	  	 	4	 	 	 	400	 	  	 	4	 	 	 	500	 	  	 	5	 	 	 	400	 	  	 	4	 	 	 	300	 	  	 	3	 	
<620	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	
	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Total Flow	 	$	15,800	 	 	 	100	% 	  	$	9,600	 	  	 	100	% 	 	$	9,300	 	  	 	100	% 	 	$	10,300	 	  	 	100	% 	 	$	11,400	 	  	 	100	% 	 	$	9,000	 	  	 	100	% 	
	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Loan-To-Value Ratio	 				 			 	  				  				 				  				 				  				 				  				 				  				
95.01% and above	 	$	2,900	 	 	 	18	% 	  	$	1,800	 	  	 	19	% 	 	$	2,000	 	  	 	21	% 	 	$	2,000	 	  	 	19	% 	 	$	2,400	 	  	 	21	% 	 	$	1,600	 	  	 	18	% 	
90.01% to 95.00%	 	 	6,900	 	 	 	44	 	  	 	4,200	 	  	 	44	 	 	 	4,000	 	  	 	43	 	 	 	4,500	 	  	 	44	 	 	 	4,900	 	  	 	43	 	 	 	3,900	 	  	 	43	 	
85.01% to 90.00%	 	 	4,300	 	 	 	27	 	  	 	2,500	 	  	 	26	 	 	 	2,300	 	  	 	25	 	 	 	2,800	 	  	 	27	 	 	 	2,900	 	  	 	25	 	 	 	2,500	 	  	 	28	 	
85.00% and below	 	 	1,700	 	 	 	11	 	  	 	1,100	 	  	 	11	 	 	 	1,000	 	  	 	11	 	 	 	1,000	 	  	 	10	 	 	 	1,200	 	  	 	11	 	 	 	1,000	 	  	 	11	 	
	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Total Flow	 	$	15,800	 	 	 	100	% 	  	$	9,600	 	  	 	100	% 	 	$	9,300	 	  	 	100	% 	 	$	10,300	 	  	 	100	% 	 	$	11,400	 	  	 	100	% 	 	$	9,000	 	  	 	100	% 	
	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Origination	 				 			 	  				  				 				  				 				  				 				  				 				  				
Purchase	 	$	13,900	 	 	 	88	% 	  	$	8,600	 	  	 	90	% 	 	$	8,800	 	  	 	95	% 	 	$	9,800	 	  	 	95	% 	 	$	10,700	 	  	 	94	% 	 	$	8,000	 	  	 	89	% 	
Refinance	 	 	1,900	 	 	 	12	 	  	 	1,000	 	  	 	10	 	 	 	500	 	  	 	5	 	 	 	500	 	  	 	5	 	 	 	700	 	  	 	6	 	 	 	1,000	 	  	 	11	 	
	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Total Flow	 	$	15,800	 	 	 	100	% 	  	$	9,600	 	  	 	100	% 	 	$	9,300	 	  	 	100	% 	 	$	10,300	 	  	 	100	% 	 	$	11,400	 	  	 	100	% 	 	$	9,000	 	  	 	100	% 	

(1)  	Includes loans with annual and split payment types.	
(2)  	Loans with unknown FICO scores are included in the 660-679 category.	
 
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Table of Contents
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Other Metrics—U.S. Mortgage Insurance Segment
(dollar amounts in millions)

 	  	2019	 	 	2018	 	
 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Net Premiums Written	  	$	204	 	 	$	193	 	 	$	397	 	 	$	192	 	 	$	195	 	 	$	191	 	 	$	185	 	 	$	763	 	
	 								
Flow New Risk Written	  	$	3,931	 	 	$	2,403	 	 	$	6,334	 	 	$	2,300	 	 	$	2,559	 	 	$	2,866	 	 	$	2,247	 	 	$	9,972	 	
	 								
Primary Insurance In-Force (1)	  	$	178,500	 	 	$	170,400	 	 				 	$	166,700	 	 	$	163,200	 	 	$	159,500	 	 	$	154,900	 	 				
Risk In-Force	  			 	 				 				 				 				 				 				 				
Flow (2)	  	$	42,917	 	 	$	41,020	 	 				 	$	40,115	 	 	$	39,304	 	 	$	38,433	 	 	$	37,252	 	 				
Bulk (3)	  	 	167	 	 	 	173	 	 				 	 	178	 	 	 	188	 	 	 	195	 	 	 	202	 	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Primary	  	 	43,084	 	 	 	41,193	 	 				 	 	40,293	 	 	 	39,492	 	 	 	38,628	 	 	 	37,454	 	 				
Pool	  	 	62	 	 	 	66	 	 				 	 	69	 	 	 	72	 	 	 	75	 	 	 	80	 	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Risk In-Force	  	$	43,146	 	 	$	41,259	 	 				 	$	40,362	 	 	$	39,564	 	 	$	38,703	 	 	$	37,534	 	 				

Primary Risk In-Force That Is GSE Conforming	  	 	93	% 	 	 	93	% 	 				 	 	94	% 	 	 	94	% 	 	 	94	% 	 	 	94	% 	 				
	 								
Expense Ratio (Net Earned Premiums) (4)	  	 	24	% 	 	 	25	% 	 	 	25	% 	 	 	24	% 	 	 	23	% 	 	 	26	% 	 	 	24	% 	 	 	25	% 	
	 								
Expense Ratio (Net Premiums Written) (5)	  	 	24	% 	 	 	26	% 	 	 	25	% 	 	 	25	% 	 	 	23	% 	 	 	25	% 	 	 	23	% 	 	 	24	% 	
	 								
Flow Persistency	  	 	82	% 	 	 	86	% 	 				 	 	86	% 	 	 	84	% 	 	 	83	% 	 	 	84	% 	 				
	 								
Risk To Capital Ratio (6)	  	 	11.8:1	 	 	 	11.9:1	 	 				 	 	12.2:1	 	 	 	12.3:1	 	 	 	12.6:1	 	 	 	12.5:1	 	 				
	 								
PMIERs Sufficiency Ratio (7)	  	 	123	% 	 	 	123	% 	 				 	 	129	% 	 	 	130	% 	 	 	129	% 	 	 	124	% 	 				
	 								
Average Primary Loan Size (in thousands)	  	$	218	 	 	$	215	 	 				 	$	213	 	 	$	211	 	 	$	209	 	 	$	207	 	 				
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, 2019, 88% of the bulk risk in-force was related to loans financed 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, 2019 and March 31, 2019, the PMIERs sufficiency ratios were in excess of $650 million and $600 million, respectively, of available assets above the PMIERs requirements. As of December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, the PMIERs sufficiency ratios were in excess of $750 million, $750 million, $700 million and $600 million, respectively, of available assets above the prior PMIERs requirements.	
 
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Table of Contents
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Loss Metrics—U.S. Mortgage Insurance Segment
(amounts in millions)

 	  	2019	 	 	2018	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Paid claims	  			 	  				 				 				 				 				 				 				
Flow	  			 	  				 				 				 				 				 				 				
Direct	  	$	24	 	  	$	30	 	 	$	54	 	 	$	34	 	 	$	52	 	 	$	45	 	 	$	53	 	 	$	184	 	
Assumed (1)	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	1	 	
Ceded	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	(1	) 	
Loss adjustment expenses	  	 	2	 	  	 	2	 	 	 	4	 	 	 	—  	 	 	 	3	 	 	 	2	 	 	 	2	 	 	 	7	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Flow	  	 	26	 	  	 	32	 	 	 	58	 	 	 	34	 	 	 	55	 	 	 	47	 	 	 	55	 	 	 	191	 	
Bulk	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	1	 	 	 	2	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	  	 	26	 	  	 	32	 	 	 	58	 	 	 	34	 	 	 	56	 	 	 	47	 	 	 	56	 	 	 	193	 	
Pool	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	1	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Paid Claims	  	$	26	 	  	$	32	 	 	$	58	 	 	$	34	 	 	$	56	 	 	$	48	 	 	$	56	 	 	$	194	 	

Average Paid Claim (in thousands)	  	$	45.4	 	  	$	49.0	 	 				 	$	41.4	 	 	$	45.9	 	 	$	43.1	 	 	$	47.5	 	 				
	 								
Average Reserve Per Delinquency (in thousands)	  			 	  				 				 				 				 				 				 				
Flow	  	$	16.5	 	  	$	17.4	 	 				 	$	17.3	 	 	$	18.8	 	 	$	19.6	 	 	$	20.2	 	 				
Bulk loans with established reserve	  	$	14.1	 	  	$	13.8	 	 				 	$	14.6	 	 	$	17.6	 	 	$	18.4	 	 	$	17.6	 	 				
	 								
Reserves:	  			 	  				 				 				 				 				 				 				
Flow direct case	  	$	222	 	  	$	246	 	 				 	$	261	 	 	$	280	 	 	$	314	 	 	$	372	 	 				
Bulk direct case	  	 	4	 	  	 	4	 	 				 	 	5	 	 	 	7	 	 	 	8	 	 	 	8	 	 				
Assumed (1)	  	 	1	 	  	 	1	 	 				 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 				
All other (2)	  	 	27	 	  	 	29	 	 				 	 	28	 	 	 	28	 	 	 	28	 	 	 	33	 	 				
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Reserves	  	$	254	 	  	$	280	 	 				 	$	296	 	 	$	317	 	 	$	352	 	 	$	415	 	 				

Beginning Reserves	  	$	    280	 	  	$	    296	 	 	$	    296	 	 	$	    317	 	 	$	    352	 	 	$	    415	 	 	$	    455	 	 	$	    455	 	
Paid claims	  	 	(26	) 	  	 	(32	) 	 	 	(58	) 	 	 	(34	) 	 	 	(56	) 	 	 	(48	) 	 	 	(57	) 	 	 	(195	) 	
Increase (decrease) in reserves	  	 	—  	 	  	 	16	 	 	 	16	 	 	 	13	 	 	 	21	 	 	 	(15	) 	 	 	17	 	 	 	36	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending Reserves	  	$	254	 	  	$	280	 	 	$	254	 	 	$	296	 	 	$	317	 	 	$	352	 	 	$	415	 	 	$	296	 	

Beginning Reinsurance Recoverable (3)	  	$	—  	 	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	1	 	 	$	1	 	
Ceded paid claims	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	(1	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending Reinsurance Recoverable	  	$	—  	 	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss Ratio (4)	  	 	—  	% 	  	 	8	% 	 	 	4	% 	 	 	7	% 	 	 	11	% 	 	 	(8	)% 	 	 	9	% 	 	 	5	% 	
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)  	Reinsurance recoverable excludes ceded unearned premium recoveries and amounts for which cash proceeds have not yet been received.	
(4)  	The ratio of benefits and other changes in policy reserves to net earned premiums. During the second quarter of 2019, the company recorded a favorable reserve adjustment of $10 million, which reduced the loss ratio by five percentage points for the three months ended June 30, 2019. During the second quarter of 2018, the company recorded a favorable reserve adjustment of $28 million, which reduced the loss ratio by four percentage points for the twelve months ended December 31, 2018 and 15 percentage points for the three months ended June 30, 2018.	
 
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Table of Contents
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Delinquency Metrics—U.S. Mortgage Insurance Segment
(dollar amounts in millions)

 	  	2019	 	 	2018	 		
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 		
Number of Primary Delinquencies	  			 	  				 				 				 				 				 				 					
Flow	  	 	15,070	 	  	 	15,764	 	 				 	 	16,670	 	 	 	16,367	 	 	 	17,505	 	 	 	20,007	 	 					
Bulk loans with an established reserve	  	 	347	 	  	 	360	 	 				 	 	403	 	 	 	415	 	 	 	445	 	 	 	494	 	 					
Bulk loans with no reserve (1)	  	 	65	 	  	 	82	 	 				 	 	86	 	 	 	92	 	 	 	101	 	 	 	101	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total Number of Primary Delinquencies	  	 	15,482	 	  	 	16,206	 	 				 	 	17,159	 	 	 	16,874	 	 	 	18,051	 	 	 	20,602	 	 					

Beginning Number of Primary Delinquencies	  	 	16,206	 	  	 	17,159	 	 	 	17,159	 	 	 	16,874	 	 	 	18,051	 	 	 	20,602	 	 	 	23,188	 	 	 	23,188	 		
New delinquencies	  	 	7,705	 	  	 	8,539	 	 	 	16,244	 	 	 	8,719	 	 	 	7,884	 	 	 	7,049	 	 	 	8,409	 	 	 	32,061	 		
Delinquency cures	  	 	(7,872	) 	  	 	(8,835	) 	 	 	(16,707	) 	 	 	(7,601	) 	 	 	(7,857	) 	 	 	(8,488	) 	 	 	(9,840	) 	 	 	(33,786	) 		
Paid claims	  	 	(557	) 	  	 	(657	) 	 	 	(1,214	) 	 	 	(833	) 	 	 	(1,204	) 	 	 	(1,112	) 	 	 	(1,155	) 	 	 	(4,304	) 		
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Ending Number of Primary Delinquencies	  	 	15,482	 	  	 	16,206	 	 	 	15,482	 	 	 	17,159	 	 	 	16,874	 	 	 	18,051	 	 	 	20,602	 	 	 	17,159	 		
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Composition of Cures	  			 	  				 				 				 				 				 				 					
Reported delinquent and cured-intraquarter	  	 	1,621	 	  	 	2,342	 	 				 	 	1,767	 	 	 	1,651	 	 	 	1,514	 	 	 	2,288	 	 					
Number of missed payments delinquent prior to cure:	  			 	  				 				 				 				 				 				 					
3 payments or less	  	 	4,567	 	  	 	4,862	 	 				 	 	4,131	 	 	 	3,951	 	 	 	4,568	 	 	 	5,413	 	 					
4 - 11 payments	  	 	1,434	 	  	 	1,345	 	 				 	 	1,382	 	 	 	1,943	 	 	 	2,070	 	 	 	1,719	 	 					
12 payments or more	  	 	250	 	  	 	286	 	 				 	 	321	 	 	 	312	 	 	 	336	 	 	 	420	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	 	7,872	 	  	 	8,835	 	 				 	 	7,601	 	 	 	7,857	 	 	 	8,488	 	 	 	9,840	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Primary Delinquencies by Missed Payment Status	  			 	  				 				 				 				 				 				 					
3 payments or less	  	 	7,807	 	  	 	7,873	 	 				 	 	8,578	 	 	 	7,853	 	 	 	7,539	 	 	 	8,335	 	 					
4 - 11 payments	  	 	4,243	 	  	 	4,755	 	 				 	 	4,689	 	 	 	4,745	 	 	 	5,657	 	 	 	6,875	 	 					
12 payments or more	  	 	3,432	 	  	 	3,578	 	 				 	 	3,892	 	 	 	4,276	 	 	 	4,855	 	 	 	5,392	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Primary Delinquencies	  	 	15,482	 	  	 	16,206	 	 				 	 	17,159	 	 	 	16,874	 	 	 	18,051	 	 	 	20,602	 	 					

							
 	  	June 30, 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	  	 	7,629	 	  	$	26	 	 	$	341	 	 	 	8	% 	 				 				 				 					
4 - 11 payments in default	  	 	4,162	 	  	 	75	 	 	 	190	 	 	 	39	% 	 				 				 				 					
12 payments or more in default	  	 	3,279	 	  	 	121	 	 	 	167	 	 	 	72	% 	 				 				 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 				 				 				 					
Total	  	 	15,070	 	  	$	222	 	 	$	698	 	 	 	32	% 	 				 				 				 					

 	  	December 31, 2018	 	 	 	 	 	 	 	 	 	 	 	 	 		
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	  	 	8,360	 	  	$	31	 	 	$	365	 	 	 	8	% 	 				 				 				 					
4 - 11 payments in default	  	 	4,591	 	  	 	88	 	 	 	208	 	 	 	42	% 	 				 				 				 					
12 payments or more in default	  	 	3,719	 	  	 	142	 	 	 	188	 	 	 	76	% 	 				 				 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 				 				 				 					
Total	  	 	16,670	 	  	$	261	 	 	$	761	 	 	 	34	% 	 				 				 				 					

(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.	
 
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Table of Contents
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

 	  	2019	 	 	2018	 		
 	  	2Q	 	  	1Q	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 		
	Primary Loans	  			 	  				 				 				 				 				
Primary loans in-force	  	 	818,358	 	  	 	792,800	 	 	 	783,288	 	 	 	773,290	 	 	 	762,727	 	 	 	749,145	 		
Primary delinquent loans	  	 	15,482	 	  	 	16,206	 	 	 	17,159	 	 	 	16,874	 	 	 	18,051	 	 	 	20,602	 		
Primary delinquency rate	  	 	1.89	% 	  	 	2.04	% 	 	 	2.19	% 	 	 	2.18	% 	 	 	2.37	% 	 	 	2.75	% 		
	 							
Flow loans in-force	  	 	806,739	 	  	 	780,733	 	 	 	770,657	 	 	 	759,965	 	 	 	748,497	 	 	 	734,411	 		
Flow delinquent loans	  	 	15,070	 	  	 	15,764	 	 	 	16,670	 	 	 	16,367	 	 	 	17,505	 	 	 	20,007	 		
Flow delinquency rate	  	 	1.87	% 	  	 	2.02	% 	 	 	2.16	% 	 	 	2.15	% 	 	 	2.34	% 	 	 	2.72	% 		
	 							
Bulk loans in-force	  	 	11,619	 	  	 	12,067	 	 	 	12,631	 	 	 	13,325	 	 	 	14,230	 	 	 	14,734	 		
Bulk delinquent loans	  	 	412	 	  	 	442	 	 	 	489	 	 	 	507	 	 	 	546	 	 	 	595	 		
Bulk delinquency rate	  	 	3.55	% 	  	 	3.66	% 	 	 	3.87	% 	 	 	3.80	% 	 	 	3.84	% 	 	 	4.04	% 		
	 							
A minus and sub-prime loans in-force	  	 	14,180	 	  	 	14,712	 	 	 	15,348	 	 	 	16,087	 	 	 	16,928	 	 	 	17,964	 		
A minus and sub-prime delinquent loans	  	 	2,367	 	  	 	2,530	 	 	 	2,727	 	 	 	2,817	 	 	 	3,058	 	 	 	3,557	 		
A minus and sub-prime delinquency rate	  	 	16.69	% 	  	 	17.20	% 	 	 	17.77	% 	 	 	17.51	% 	 	 	18.06	% 	 	 	19.80	% 		
	 							
	Pool Loans	  			 	  				 				 				 				 				
Pool loans in-force	  	 	4,331	 	  	 	4,470	 	 	 	4,535	 	 	 	4,636	 	 	 	4,774	 	 	 	4,961	 		
Pool delinquent loans	  	 	177	 	  	 	187	 	 	 	220	 	 	 	215	 	 	 	204	 	 	 	220	 		
Pool delinquency rate	  	 	4.09	% 	  	 	4.18	% 	 	 	4.85	% 	 	 	4.64	% 	 	 	4.27	% 	 	 	4.43	% 		
	 							
	Primary Risk In-Force by Credit Quality	  			 	  				 				 				 				 				
Over 735	  	 	57	% 	  	 	57	% 	 	 	57	% 	 	 	57	% 	 	 	57	% 	 	 	57	% 		
680-735	  	 	32	% 	  	 	32	% 	 	 	32	% 	 	 	32	% 	 	 	32	% 	 	 	32	% 		
660-679 (1)	  	 	5	% 	  	 	5	% 	 	 	5	% 	 	 	5	% 	 	 	5	% 	 	 	5	% 		
620-659	  	 	5	% 	  	 	5	% 	 	 	5	% 	 	 	5	% 	 	 	5	% 	 	 	5	% 		
<620	  	 	1	% 	  	 	1	% 	 	 	1	% 	 	 	1	% 	 	 	1	% 	 	 	1	% 		

(1)  	Loans with unknown FICO scores are included in the 660-679 category.	
 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Portfolio Quality Metrics—U.S. Mortgage Insurance Segment
(amounts in millions)

 	  	June 30, 2019	 		
	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	  	 	6.10	% 	 	 	8.4	% 	 	$	1,515	 	  	 	0.9	% 	 	$	285	 	  	 	0.7	% 	 	 	11.39	% 		
2005 to 2008	  	 	5.47	% 	 	 	58.2	 	 	 	17,576	 	  	 	9.8	 	 	 	4,037	 	  	 	9.4	 	 	 	7.79	% 		
2009 to 2012	  	 	4.29	% 	 	 	2.2	 	 	 	3,934	 	  	 	2.2	 	 	 	913	 	  	 	2.1	 	 	 	1.80	% 		
2013	  	 	4.11	% 	 	 	1.8	 	 	 	4,755	 	  	 	2.7	 	 	 	1,162	 	  	 	2.7	 	 	 	1.44	% 		
2014	  	 	4.45	% 	 	 	4.4	 	 	 	8,277	 	  	 	4.6	 	 	 	2,013	 	  	 	4.7	 	 	 	1.80	% 		
2015	  	 	4.15	% 	 	 	6.2	 	 	 	16,648	 	  	 	9.3	 	 	 	4,023	 	  	 	9.3	 	 	 	1.27	% 		
2016	  	 	3.89	% 	 	 	7.5	 	 	 	30,515	 	  	 	17.1	 	 	 	7,348	 	  	 	17.0	 	 	 	0.93	% 		
2017	  	 	4.25	% 	 	 	7.2	 	 	 	33,245	 	  	 	18.6	 	 	 	8,087	 	  	 	18.8	 	 	 	0.90	% 		
2018	  	 	4.77	% 	 	 	3.9	 	 	 	36,887	 	  	 	20.7	 	 	 	9,025	 	  	 	20.9	 	 	 	0.49	% 		
2019	  	 	4.75	% 	 	 	0.2	 	 	 	25,129	 	  	 	14.1	 	 	 	6,191	 	  	 	14.4	 	 	 	0.07	% 		
	  				 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 					
Total	  	 	4.53	% 	 	 	100.0	% 	 	$	178,481	 	  	 	100.0	% 	 	$	43,084	 	  	 	100.0	% 	 	 	1.89	% 		

 	  	June 30, 2019	 	 	March 31, 2019	 	 	June 30, 2018	 	 	 	 		
 	  	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)	  	$	43,084	 	 	 	1.89	% 	 	$	41,193	 	  	 	2.04	% 	 	$	38,628	 	  	 	2.37	% 	 					
Top 10 lenders	  	$	12,597	 	 	 	2.11	% 	 	$	11,617	 	  	 	2.38	% 	 	$	11,249	 	  	 	2.83	% 	 					
Top 20 lenders	  	$	16,729	 	 	 	2.03	% 	 	$	15,555	 	  	 	2.27	% 	 	$	15,014	 	  	 	2.75	% 	 					
									
Loan-to-value ratio	  				 				 				  				 				  				 					
95.01% and above	  	$	7,837	 	 	 	3.16	% 	 	$	7,401	 	  	 	3.46	% 	 	$	6,594	 	  	 	4.22	% 	 					
90.01% to 95.00%	  	 	22,389	 	 	 	1.49	% 	 	 	21,433	 	  	 	1.59	% 	 	 	20,088	 	  	 	1.75	% 	 					
80.01% to 90.00%	  	 	12,699	 	 	 	1.59	% 	 	 	12,195	 	  	 	1.73	% 	 	 	11,762	 	  	 	2.05	% 	 					
80.00% and below	  	 	159	 	 	 	2.43	% 	 	 	164	 	  	 	2.43	% 	 	 	184	 	  	 	2.81	% 	 					
	  	 	 	 	 				 	 	 	 	  				 	 	 	 	  				 					
Total	  	$	43,084	 	 	 	1.89	% 	 	$	41,193	 	  	 	2.04	% 	 	$	38,628	 	  	 	2.37	% 	 					
	  	 	 	 	 				 	 	 	 	  				 	 	 	 	  				 					
Loan grade	  				 				 				  				 				  				 					
Prime	  	$	42,587	 	 	 	1.63	% 	 	$	40,678	 	  	 	1.76	% 	 	$	38,035	 	  	 	2.01	% 	 					
A minus and sub-prime	  	 	497	 	 	 	16.69	% 	 	 	515	 	  	 	17.20	% 	 	 	593	 	  	 	18.06	% 	 					
	  	 	 	 	 				 	 	 	 	  				 	 	 	 	  				 					
Total	  	$	43,084	 	 	 	1.89	% 	 	$	41,193	 	  	 	2.04	% 	 	$	38,628	 	  	 	2.37	% 	 					

(1)  	Average Annual Mortgage Interest Rate.	
(2)  	Total reserves were $254 million as of June 30, 2019.	
 
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Canada Mortgage Insurance Segment

 
 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Adjusted Operating Income and Sales—Canada Mortgage Insurance Segment
(amounts in millions)

 	  	2019	 	  	2018	 	
 	  	2Q	 	  	1Q	 	 	Total	 	  	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				  				 				 				 				 				
Premiums	  	$	125	 	  	$	126	 	 	$	251	 	  	$	128	 	 	$	127	 	 	$	131	 	 	$	139	 	 	$	525	 	
Net investment income	  	 	35	 	  	 	34	 	 	 	69	 	  	 	36	 	 	 	34	 	 	 	34	 	 	 	34	 	 	 	138	 	
Net investment gains (losses)	  	 	1	 	  	 	(1	) 	 	 	—  	 	  	 	(136	) 	 	 	29	 	 	 	(15	) 	 	 	(15	) 	 	 	(137	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	161	 	  	 	159	 	 	 	320	 	  	 	28	 	 	 	190	 	 	 	150	 	 	 	158	 	 	 	526	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				  				 				 				 				 				
Benefits and other changes in policy reserves	  	 	19	 	  	 	19	 	 	 	38	 	  	 	23	 	 	 	18	 	 	 	19	 	 	 	18	 	 	 	78	 	
Acquisition and operating expenses, net of deferrals	  	 	22	 	  	 	20	 	 	 	42	 	  	 	16	 	 	 	17	 	 	 	20	 	 	 	17	 	 	 	70	 	
Amortization of deferred acquisition costs and intangibles	  	 	11	 	  	 	10	 	 	 	21	 	  	 	11	 	 	 	11	 	 	 	11	 	 	 	10	 	 	 	43	 	
Interest expense	  	 	5	 	  	 	4	 	 	 	9	 	  	 	5	 	 	 	4	 	 	 	4	 	 	 	5	 	 	 	18	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	57	 	  	 	53	 	 	 	110	 	  	 	55	 	 	 	50	 	 	 	54	 	 	 	50	 	 	 	209	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) BEFORE INCOME TAXES	  	 	104	 	  	 	106	 	 	 	210	 	  	 	(27	) 	 	 	140	 	 	 	96	 	 	 	108	 	 	 	317	 	
Provision (benefit) for income taxes	  	 	29	 	  	 	29	 	 	 	58	 	  	 	(7	) 	 	 	37	 	 	 	24	 	 	 	30	 	 	 	84	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	75	 	  	 	77	 	 	 	152	 	  	 	(20	) 	 	 	103	 	 	 	72	 	 	 	78	 	 	 	233	 	
Less: net income (loss) attributable to noncontrolling interests	  	 	35	 	  	 	36	 	 	 	71	 	  	 	(6	) 	 	 	46	 	 	 	32	 	 	 	36	 	 	 	108	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	 	40	 	  	 	41	 	 	 	81	 	  	 	(14	) 	 	 	57	 	 	 	40	 	 	 	42	 	 	 	125	 	
	 								
ADJUSTMENTS TO NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:	  			 	  				 				  				 				 				 				 				
Net investment (gains) losses, net (1)	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	78	 	 	 	(17	) 	 	 	8	 	 	 	9	 	 	 	78	 	
(Gains) losses on early extinguishment of debt, net (2)	  	 	1	 	  	 	—  	 	 	 	1	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Taxes on adjustments	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	(16	) 	 	 	4	 	 	 	(2	) 	 	 	(2	) 	 	 	(16	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (3)	  	$	41	 	  	$	41	 	 	$	82	 	  	$	48	 	 	$	44	 	 	$	46	 	 	$	49	 	 	$	187	 	

									
SALES:	  				  				 				  				 				 				 				 				
New Insurance Written (NIW)	  				  				 				  				 				 				 				 				
Flow	  	$	3,900	 	  	$	2,200	 	 	$	6,100	 	  	$	3,300	 	 	$	4,200	 	 	$	3,700	 	 	$	2,500	 	 	$	13,700	 	
Bulk	  	 	1,900	 	  	 	700	 	 	 	2,600	 	  	 	900	 	 	 	600	 	 	 	900	 	 	 	900	 	 	 	3,300	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Canada NIW (4)	  	$	5,800	 	  	$	2,900	 	 	$	8,700	 	  	$	4,200	 	 	$	4,800	 	 	$	4,600	 	 	$	3,400	 	 	$	17,000	 	

 
(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	  	$	(1	) 	  	$	1	 	 	$	—  		  	$	136	 	 	$	(29	) 	 	$	15	 	 	$	15	 	 	$	137	 	
Adjustment for net investment gains (losses) attributable to noncontrolling interests	  	 	1	 	  	 	(1	) 	 	 	—  	 	  	 	(58	) 	 	 	12	 	 	 	(7	) 	 	 	(6	) 	 	 	(59	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment (gains) losses, net	  	$	—  	 	  	$	—  	 	 	$	—  	 	  	$	78	 	 	$	(17	) 	 	$	8	 	 	$	9	 	 	$	78	 	

(2)  	For the three months ended June 30, 2019, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million.	
(3)  	Adjusted operating income for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $43 million and $87 million for the three and six months ended June 30, 2019, respectively.	
(4)  	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $6,100 million and $9,100 million for the three and six months ended June 30, 2019, respectively.	
 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Selected Key Performance Measures—Canada Mortgage Insurance Segment
(amounts in millions)

 	  	2019	 	 	2018	 		
 	  	2Q	 	  	1Q	 	 	  Total  	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 		
Net Premiums Written	  	$	145	 	  	$	79	 	 	$	224	 	 	$	119	 	 	$	150	 	 	$	133	 	 	$	92	 	 	$	494	 		
Loss Ratio (1)	  	 	15	% 	  	 	15	% 	 	 	15	% 	 	 	18	% 	 	 	14	% 	 	 	15	% 	 	 	13	% 	 	 	15	% 		
Expense Ratio (Net Earned Premiums) (2)	  	 	26	% 	  	 	24	% 	 	 	25	% 	 	 	21	% 	 	 	22	% 	 	 	23	% 	 	 	20	% 	 	 	22	% 		
Expense Ratio (Net Premiums Written) (3)	  	 	22	% 	  	 	39	% 	 	 	28	% 	 	 	23	% 	 	 	19	% 	 	 	23	% 	 	 	30	% 	 	 	23	% 		
	 									
Primary Insurance In-Force (4)	  	$	395,700	 	  	$	382,200	 	 				 	$	372,000	 	 	$	389,400	 	 	$	380,200	 	 	$	384,600	 	 					
Primary Risk In-Force (5)	  			 	  				 				 				 				 				 				 					
Flow	  	$	94,900	 	  	$	91,600	 	 				 	$	89,000	 	 	$	92,800	 	 	$	89,800	 	 	$	90,500	 	 					
Bulk	  	 	43,600	 	  	 	42,200	 	 				 	 	41,200	 	 	 	43,500	 	 	 	43,300	 	 	 	44,100	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	$	138,500	 	  	$	133,800	 	 				 	$	130,200	 	 	$	136,300	 	 	$	133,100	 	 	$	134,600	 	 					

						
 	  	June 30, 2019	 	 	March 31, 2019	 	 	 	 	 	 	 		
	Risk In-Force by Loan-To-Value Ratio (6) 	  	Primary	 	  	Flow	 	 	Bulk	 	 	Primary	 	 	Flow	 	 	Bulk	 	 	 	 	 	 	 	
95.01% and above	  	$	47,842	 	  	$	47,842	 	 	$	—  	 	 	$	45,964	 	 	$	45,964	 	 	$	—  	 	 				 					
90.01% to 95.00%	  	 	27,898	 	  	 	27,898	 	 	 	—  	 	 	 	26,987	 	 	 	26,987	 	 	 	—  	 	 				 					
80.01% to 90.00%	  	 	15,974	 	  	 	15,974	 	 	 	—  	 	 	 	15,532	 	 	 	15,532	 	 	 	—  	 	 				 					
80.00% and below	  	 	46,774	 	  	 	3,152	 	 	 	43,622	 	 	 	45,303	 	 	 	3,075	 	 	 	42,228	 	 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 					
Total	  	$	138,488	 	  	$	94,866	 	 	$	43,622	 	 	$	133,786	 	 	$	91,558	 	 	$	42,228	 	 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 					
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)  	As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding balances in Canada from almost all of its customers. As a result, the company estimates that the outstanding balance of insured mortgages was approximately $157.0 billion, $154.0 billion, $152.0 billion, $163.0 billion, $162.0 billion and $168.0 billion as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively. This is based on the extrapolation of the amounts reported by lenders to the entire insured population. The current period reported amount is an estimate due to the timing of information received by the company’s customers.	
(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, Canada 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.	
(6)  	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.	
 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Selected Key Performance Measures—Canada Mortgage Insurance Segment
(dollar amounts in millions)

	Primary Insurance	  	June 30, 2019	 	 	March 31, 2019	 	 	December 31, 2018	 	 	September 30, 2018	 	 	June 30, 2018	 	 	 	 	
Insured loans in-force (1),(2)	  	 	2,174,084	 	 	 	2,152,048	 	 	 	2,143,191	 	 	 	2,133,618	 	 	 	2,137,221	 	 					
Insured delinquent loans	  	 	1,701	 	 	 	1,760	 	 	 	1,684	 	 	 	1,695	 	 	 	1,742	 	 					
Insured delinquency rate (2),(3)	  	 	0.08	% 	 	 	0.08	% 	 	 	0.08	% 	 	 	0.08	% 	 	 	0.08	% 	 					
								
Flow loans in-force (1)	  	 	1,523,128	 	 	 	1,507,283	 	 	 	1,499,304	 	 	 	1,486,859	 	 	 	1,470,826	 	 					
Flow delinquent loans	  	 	1,340	 	 	 	1,384	 	 	 	1,310	 	 	 	1,327	 	 	 	1,406	 	 					
Flow delinquency rate (3)	  	 	0.09	% 	 	 	0.09	% 	 	 	0.09	% 	 	 	0.09	% 	 	 	0.10	% 	 					
								
Bulk loans in-force (1)	  	 	650,956	 	 	 	644,765	 	 	 	643,887	 	 	 	646,759	 	 	 	666,395	 	 					
Bulk delinquent loans	  	 	361	 	 	 	376	 	 	 	374	 	 	 	368	 	 	 	336	 	 					
Bulk delinquency rate (3)	  	 	0.06	% 	 	 	0.06	% 	 	 	0.06	% 	 	 	0.06	% 	 	 	0.05	% 	 					
								
	Loss Metrics	  	June 30, 2019	 	 	March 31, 2019	 	 	December 31, 2018	 	 	September 30, 2018	 	 	June 30, 2018	 	 	 	 	
Beginning Reserves	  	$	88	 	 	$	84	 	 	$	82	 	 	$	83	 	 	$	84	 	 					
Paid claims (4)	  	 	(18	) 	 	 	(19	) 	 	 	(18	) 	 	 	(19	) 	 	 	(20	) 	 					
Increase in reserves	  	 	19	 	 	 	21	 	 	 	24	 	 	 	17	 	 	 	21	 	 					
Impact of changes in foreign exchange rates	  	 	2	 	 	 	2	 	 	 	(4	) 	 	 	1	 	 	 	(2	) 	 					
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Ending Reserves	  	$	91	 	 	$	88	 	 	$	84	 	 	$	82	 	 	$	83	 	 					

 	  	June 30, 2019	 	 	March 31, 2019	 	 	June 30, 2018	 		
	Province and Territory	  	% of Primary
Risk In-Force	 	 	Primary
Delinquency Rate	 	 	% of Primary
Risk In-Force	 	 	Primary
Delinquency Rate	 	 	% of Primary
Risk In-Force	 	 	Primary
Delinquency Rate	 	
Ontario	  	 	47	% 	 	 	0.03	% 	 	 	47	% 	 	 	0.03	% 	 	 	47	% 	 	 	0.03	% 		
Alberta	  	 	17	 	 	 	0.21	% 	 	 	17	 	 	 	0.19	% 	 	 	16	 	 	 	0.17	% 		
British Columbia	  	 	14	 	 	 	0.04	% 	 	 	14	 	 	 	0.04	% 	 	 	14	 	 	 	0.04	% 		
Quebec	  	 	13	 	 	 	0.07	% 	 	 	13	 	 	 	0.09	% 	 	 	13	 	 	 	0.10	% 		
Saskatchewan	  	 	3	 	 	 	0.27	% 	 	 	3	 	 	 	0.29	% 	 	 	3	 	 	 	0.28	% 		
Nova Scotia	  	 	2	 	 	 	0.13	% 	 	 	2	 	 	 	0.13	% 	 	 	2	 	 	 	0.15	% 		
Manitoba	  	 	2	 	 	 	0.09	% 	 	 	2	 	 	 	0.11	% 	 	 	2	 	 	 	0.10	% 		
New Brunswick	  	 	1	 	 	 	0.08	% 	 	 	1	 	 	 	0.13	% 	 	 	1	 	 	 	0.15	% 		
All Other	  	 	1	 	 	 	0.20	% 	 	 	1	 	 	 	0.20	% 	 	 	2	 	 	 	0.20	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.08	% 	 	 	100	% 	 	 	0.08	% 	 	 	100	% 	 	 	0.08	% 		

	By Policy Year	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
2010 and prior	  	 	39	% 	 	 	0.04	% 	 	 	39	% 	 	 	0.04	% 	 	 	41	% 	 	 	0.05	% 		
2011	  	 	5	 	 	 	0.14	% 	 	 	5	 	 	 	0.15	% 	 	 	5	 	 	 	0.13	% 		
2012	  	 	6	 	 	 	0.16	% 	 	 	6	 	 	 	0.17	% 	 	 	6	 	 	 	0.18	% 		
2013	  	 	6	 	 	 	0.16	% 	 	 	6	 	 	 	0.18	% 	 	 	6	 	 	 	0.15	% 		
2014	  	 	7	 	 	 	0.17	% 	 	 	7	 	 	 	0.17	% 	 	 	8	 	 	 	0.16	% 		
2015	  	 	10	 	 	 	0.11	% 	 	 	11	 	 	 	0.12	% 	 	 	11	 	 	 	0.11	% 		
2016	  	 	13	 	 	 	0.08	% 	 	 	13	 	 	 	0.08	% 	 	 	13	 	 	 	0.08	% 		
2017	  	 	7	 	 	 	0.09	% 	 	 	7	 	 	 	0.08	% 	 	 	7	 	 	 	0.04	% 		
2018	  	 	5	 	 	 	0.03	% 	 	 	5	 	 	 	0.02	% 	 	 	3	 	 	 	—  	% 		
2019	  	 	2	 	 	 	—  	% 	 	 	1	 	 	 	—  	% 	 	 	—  	 	 	 	—  	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.08	% 	 	 	100	% 	 	 	0.08	% 	 	 	100	% 	 	 	0.08	% 		

(1)  	Insured loans in-force represent the original number of loans insured for which the coverage term has not expired, and for which no policy level cancellation or termination has been received.	
(2)  	As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding loans in-force in Canada from almost all of its customers. As a result, the company estimates that the outstanding loans in-force were 901,000 as of June 30, 2019, 902,000 as of March 31, 2019, 910,000 as of December 31, 2018, 924,000 as of September 30, 2018 and 935,000 as of June 30, 2018. This is based on the extrapolation of the amounts reported by lenders to the entire insured population. The corresponding insured delinquency rate was 0.19% as of June 30, 2019, 0.20% as of March 31, 2019, 0.18% as of December 31, 2018 and September 30, 2018 and 0.19% as of June 30, 2018. The current period reported amounts are estimates due to the timing of information received by the company’s customers.	
(3)  	Delinquency rates are based on insured loans in-force.	
(4)  	Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims.	
 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Selected Key Performance Measures—Canada Mortgage Insurance Segment
(Canadian dollar amounts in millions)

 	  	2019	 	  	2018	 	
 	  	2Q	 	  	1Q	 	 	Total	 	  	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Paid claims (1) 	  			 	  				 				  				 				 				 				 				
Flow	  	$	22	 	  	$	26	 	 	$	48	 	  	$	18	 	 	$	23	 	 	$	26	 	 	$	23	 	 	$	90	 	
Bulk	  	 	1	 	  	 	1	 	 	 	2	 	  	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	7	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Paid Claims	  	$	23	 	  	$	27	 	 	$	50	 	  	$	20	 	 	$	25	 	 	$	27	 	 	$	25	 	 	$	97	 	

Average Paid Claim (in thousands)	  	$	67.0	 	  	$	81.2	 	 				  	$	58.1	 	 	$	67.4	 	 	$	79.4	 	 	$	68.5	 	 				
	 	 							
Average Reserve Per Delinquency (in thousands)	  	$	69.9	 	  	$	66.4	 	 				  	$	68.0	 	 	$	62.6	 	 	$	62.5	 	 	$	62.7	 	 				
	 	 							
Loss Metrics	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beginning Reserves	  	$	117	 	  	$	115	 	 	$	115	 	  	$	106	 	 	$	109	 	 	$	108	 	 	$	109	 	 	$	109	 	
Paid claims (1)	  	 	(23	) 	  	 	(27	) 	 	 	(50	) 	  	 	(20	) 	 	 	(25	) 	 	 	(27	) 	 	 	(25	) 	 	 	(97	) 	
Increase in reserves	  	 	25	 	  	 	29	 	 	 	54	 	  	 	29	 	 	 	22	 	 	 	28	 	 	 	24	 	 	 	103	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending Reserves	  	$	119	 	  	$	117	 	 	$	119	 	  	$	115	 	 	$	106	 	 	$	109	 	 	$	108	 	 	$	115	 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loan Amount (2) 	  			 	  				 				  				 				 				 				 				
Over $550K	  	 	9	% 	  	 	9	% 	 				  	 	9	% 	 	 	9	% 	 	 	9	% 	 	 	8	% 	 				
$400K to $550K	  	 	15	 	  	 	15	 	 				  	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 				
$250K to $400K	  	 	35	 	  	 	35	 	 				  	 	35	 	 	 	34	 	 	 	34	 	 	 	34	 	 				
$100K to $250K	  	 	38	 	  	 	38	 	 				  	 	38	 	 	 	39	 	 	 	39	 	 	 	39	 	 				
$100K or Less	  	 	3	 	  	 	3	 	 				  	 	3	 	 	 	3	 	 	 	3	 	 	 	4	 	 				
	  	 	 	 	  	 	 	 	 				  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total	  	 	100	% 	  	 	100	% 	 				  	 	100	% 	 	 	100	% 	 	 	100	% 	 	 	100	% 	 				

Average Primary Loan Size (in thousands)	  	$	238	 	  	$	237	 	 				  	$	237	 	 	$	236	 	 	$	234	 	 	$	233	 	 				
All amounts presented in Canadian 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.	
 
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Australia Mortgage Insurance Segment

 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Adjusted Operating Income and Sales—Australia Mortgage Insurance Segment
(amounts in millions)

 	  	2019	 	  	2018	 	
 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				
Premiums	  	$	80	 	  	$	83	 	  	$	163	 	  	$	82	 	  	$	87	 	  	$	106	 	  	$	98	 	  	$	373	 	
Net investment income	  	 	15	 	  	 	16	 	  	 	31	 	  	 	15	 	  	 	17	 	  	 	18	 	  	 	17	 	  	 	67	 	
Net investment gains (losses)	  	 	1	 	  	 	12	 	  	 	13	 	  	 	(19	) 	  	 	1	 	  	 	12	 	  	 	(9	) 	  	 	(15	) 	
Policy fees and other income	  	 	—  	 	  	 	(1	) 	  	 	(1	) 	  	 	1	 	  	 	—  	 	  	 	—  	 	  	 	1	 	  	 	2	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	96	 	  	 	110	 	  	 	206	 	  	 	79	 	  	 	105	 	  	 	136	 	  	 	107	 	  	 	427	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	26	 	  	 	28	 	  	 	54	 	  	 	24	 	  	 	27	 	  	 	29	 	  	 	30	 	  	 	110	 	
Acquisition and operating expenses, net of deferrals	  	 	17	 	  	 	17	 	  	 	34	 	  	 	16	 	  	 	15	 	  	 	17	 	  	 	17	 	  	 	65	 	
Amortization of deferred acquisition costs and intangibles	  	 	9	 	  	 	9	 	  	 	18	 	  	 	10	 	  	 	10	 	  	 	12	 	  	 	11	 	  	 	43	 	
Interest expense	  	 	2	 	  	 	2	 	  	 	4	 	  	 	2	 	  	 	3	 	  	 	2	 	  	 	2	 	  	 	9	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	54	 	  	 	56	 	  	 	110	 	  	 	52	 	  	 	55	 	  	 	60	 	  	 	60	 	  	 	227	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME BEFORE INCOME TAXES	  	 	42	 	  	 	54	 	  	 	96	 	  	 	27	 	  	 	50	 	  	 	76	 	  	 	47	 	  	 	200	 	
Provision for income taxes	  	 	13	 	  	 	16	 	  	 	29	 	  	 	8	 	  	 	15	 	  	 	23	 	  	 	14	 	  	 	60	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
NET INCOME	  	 	29	 	  	 	38	 	  	 	67	 	  	 	19	 	  	 	35	 	  	 	53	 	  	 	33	 	  	 	140	 	
Less: net income attributable to noncontrolling interests	  	 	15	 	  	 	20	 	  	 	35	 	  	 	8	 	  	 	18	 	  	 	27	 	  	 	17	 	  	 	70	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	 	14	 	  	 	18	 	  	 	32	 	  	 	11	 	  	 	17	 	  	 	26	 	  	 	16	 	  	 	70	 	
	 								
ADJUSTMENTS TO NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:	  			 	  				  				  				  				  				  				  				
Net investment (gains) losses, net (1)	  	 	(1	) 	  	 	(6	) 	  	 	(7	) 	  	 	10	 	  	 	—  	 	  	 	(6	) 	  	 	4	 	  	 	8	 	
Taxes on adjustments	  	 	—  	 	  	 	2	 	  	 	2	 	  	 	(3	) 	  	 	—  	 	  	 	2	 	  	 	(1	) 	  	 	(2	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME (2)	  	$	13	 	  	$	14	 	  	$	27	 	  	$	18	 	  	$	17	 	  	$	22	 	  	$	19	 	  	$	76	 	

SALES:	  				  				  				  				  				  				  				  				
New Insurance Written (NIW)	  				  				  				  				  				  				  				  				
Flow	  	$	3,700	 	  	$	3,400	 	  	$	7,100	 	  	$	4,000	 	  	$	3,800	 	  	$	3,700	 	  	$	3,400	 	  	$	14,900	 	
Bulk	  	 	1,200	 	  	 	500	 	  	 	1,700	 	  	 	800	 	  	 	—  	 	  	 	900	 	  	 	—  	 	  	 	1,700	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Australia NIW (3),(4)	  	$	4,900	 	  	$	3,900	 	  	$	8,800	 	  	$	4,800	 	  	$	3,800	 	  	$	4,600	 	  	$	3,400	 	  	$	16,600	 	

 
(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	  	$	(1	) 	  	$	(12	) 	  	$	(13	) 	  	$	19	 	  	$	(1	) 	  	$	(12	) 	  	$	9	 	  	$	15	 	
Adjustment for net investment gains (losses) attributable to noncontrolling interests	  	 	—  	 	  	 	6	 	  	 	6	 	  	 	(9	) 	  	 	1	 	  	 	6	 	  	 	(5	) 	  	 	(7	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net investment (gains) losses, net	  	$	(1	) 	  	$	(6	) 	  	$	(7	) 	  	$	10	 	  	$	—  	 	  	$	(6	) 	  	$	4	 	  	$	8	 	

(2)  	Adjusted operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $14 million and $30 million for the three and six months ended June 30, 2019, respectively.	
(3)  	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $5,400 million and $9,600 million for the three and six months ended June 30, 2019, respectively.	
(4)  	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.	
 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Selected Key Performance Measures—Australia Mortgage Insurance Segment
(amounts in millions)

 	  	2019	 	 	2018	 		
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 		
Net Premiums Written	  	$	58	 	  	$	52	 	 	$	110	 	 	$	70	 	 	$	56	 	 	$	56	 	 	$	60	 	 	$	242	 		
Loss Ratio (1) 	  	 	34	% 	  	 	34	% 	 	 	34	% 	 	 	29	% 	 	 	31	% 	 	 	28	% 	 	 	30	% 	 	 	30	% 		
Expense Ratio (Net Earned Premiums) (2) 	  	 	33	% 	  	 	31	% 	 	 	32	% 	 	 	32	% 	 	 	29	% 	 	 	27	% 	 	 	29	% 	 	 	29	% 		
Expense Ratio (Net Premiums Written) (3) 	  	 	44	% 	  	 	50	% 	 	 	47	% 	 	 	38	% 	 	 	46	% 	 	 	50	% 	 	 	47	% 	 	 	45	% 		
	 									
Primary Insurance In-Force (4) 	  	$	215,600	 	  	$	219,200	 	 				 	$	218,200	 	 	$	222,500	 	 	$	229,400	 	 	$	246,300	 	 					
Primary Risk In-Force (4),(5) 	  			 	  				 				 				 				 				 				 					
Flow	  	$	69,100	 	  	$	70,600	 	 				 	$	70,300	 	 	$	71,900	 	 	$	74,000	 	 	$	79,600	 	 					
Bulk	  	 	6,000	 	  	 	5,700	 	 				 	 	5,700	 	 	 	5,600	 	 	 	5,900	 	 	 	6,100	 	 					
	  	 	 	 	  	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	$	75,100	 	  	$	76,300	 	 				 	$	76,000	 	 	$	77,500	 	 	$	79,900	 	 	$	85,700	 	 					

						
 	  	June 30, 2019	 	 	March 31, 2019	 	 	 	 	 	 	 		
	Risk In-Force by Loan-To-Value Ratio (4),(6) 	  	Primary	 	  	Flow	 	 	Bulk	 	 	Primary	 	 	Flow	 	 	Bulk	 	 	 	 	 	 	 	
95.01% and above	  	$	10,624	 	  	$	10,624	 	 	$	—  	 	 	$	11,045	 	 	$	11,045	 	 	$	—  	 	 				 	 	        	 		
90.01% to 95.00%	  	 	20,938	 	  	 	20,932	 	 	 	6	 	 	 	21,247	 	 	 	21,242	 	 	 	5	 	 				 					
80.01% to 90.00%	  	 	22,722	 	  	 	22,656	 	 	 	66	 	 	 	22,845	 	 	 	22,783	 	 	 	62	 	 				 					
80.00% and below	  	 	20,809	 	  	 	14,924	 	 	 	5,885	 	 	 	21,170	 	 	 	15,511	 	 	 	5,659	 	 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 					
Total	  	$	75,093	 	  	$	69,136	 	 	$	5,957	 	 	$	76,307	 	 	$	70,581	 	 	$	5,726	 	 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 					
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 $157 million, $157 million, $154 million, $158 million, $159 million and $160 million as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, 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.	
 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Selected Key Performance Measures—Australia Mortgage Insurance Segment
(dollar amounts in millions)

	Primary Insurance (1) 	  	June 30, 2019	 	 	March 31, 2019	 	 	December 31, 2018	 	 	September 30, 2018	 	 	June 30, 2018	 	 	 	 	
Insured loans in-force	  	 	1,308,811	 	 	 	1,323,172	 	 	 	1,332,906	 	 	 	1,335,133	 	 	 	1,354,614	 					
Insured delinquent loans	  	 	7,891	 	 	 	7,490	 	 	 	7,145	 	 	 	7,350	 	 	 	7,306	 					
Insured delinquency rate	  	 	0.60	% 	 	 	0.57	% 	 	 	0.54	% 	 	 	0.55	% 	 	 	0.54	% 					
Flow loans in-force	  	 	1,200,603	 	 	 	1,217,050	 	 	 	1,226,219	 	 	 	1,229,558	 	 	 	1,247,229	 					
Flow delinquent loans	  	 	7,642	 	 	 	7,265	 	 	 	6,931	 	 	 	7,133	 	 	 	7,076	 					
Flow delinquency rate	  	 	0.64	% 	 	 	0.60	% 	 	 	0.57	% 	 	 	0.58	% 	 	 	0.57	% 					
Bulk loans in-force	  	 	108,208	 	 	 	106,122	 	 	 	106,687	 	 	 	105,575	 	 	 	107,385	 					
Bulk delinquent loans	  	 	249	 	 	 	225	 	 	 	214	 	 	 	217	 	 	 	230	 					
Bulk delinquency rate	  	 	0.23	% 	 	 	0.21	% 	 	 	0.20	% 	 	 	0.21	%	 	 	0.21	% 					
	Loss Metrics	  	June 30, 2019	 	 	March 31, 2019	 	 	December 31, 2018	 	 	September 30, 2018	 	 	June 30, 2018	 				
Beginning Reserves	  	$	204	 	 	$	196	 	 	$	201	 	 	$	206	 	 	$	211	 					
Paid claims (2)	  	 	(20	) 	 	 	(22	) 	 	 	(25	) 	 	 	(27	) 	 	 	(25	) 					
Increase in reserves	  	 	27	 	 	 	28	 	 	 	25	 	 	 	26	 	 	 	29	 					
Impact of changes in foreign exchange rates	  	 	(2	) 	 	 	2	 	 	 	(5	) 	 	 	(4	) 	 	 	(9	) 					
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Ending Reserves	  	$	209	 	 	$	204	 	 	$	196	 	 	$	201	 	 	$	206	 					

 	  	June 30, 2019	 	 	March 31, 2019	 	 	June 30, 2018	 		
	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	% 	 	 	0.45	% 	 	 	28	% 	 	 	0.41	% 	 	 	28	% 	 	 	0.37	% 		
Queensland	  	 	23	 	 	 	0.81	% 	 	 	23	 	 	 	0.74	% 	 	 	23	 	 	 	0.73	% 		
Victoria	  	 	23	 	 	 	0.45	% 	 	 	22	 	 	 	0.42	% 	 	 	23	 	 	 	0.42	% 		
Western Australia	  	 	13	 	 	 	1.10	% 	 	 	13	 	 	 	1.05	% 	 	 	12	 	 	 	0.99	% 		
South Australia	  	 	6	 	 	 	0.68	% 	 	 	6	 	 	 	0.69	% 	 	 	6	 	 	 	0.67	% 		
Australian Capital Territory	  	 	3	 	 	 	0.25	% 	 	 	3	 	 	 	0.19	% 	 	 	3	 	 	 	0.18	% 		
Tasmania	  	 	2	 	 	 	0.31	% 	 	 	2	 	 	 	0.28	% 	 	 	2	 	 	 	0.34	% 		
New Zealand	  	 	2	 	 	 	0.02	% 	 	 	2	 	 	 	0.04	% 	 	 	2	 	 	 	0.06	% 		
Northern Territory	  	 	1	 	 	 	0.83	% 	 	 	1	 	 	 	0.76	% 	 	 	1	 	 	 	0.61	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.60	% 	 	 	100	% 	 	 	0.57	% 	 	 	100	% 	 	 	0.54	% 		

	By Policy Year (1) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
2010 and prior	  	 	44	% 	 	 	0.52	% 	 	 	45	% 	 	 	0.49	% 	 	 	47	% 	 	 	0.49	% 		
2011	  	 	4	 	 	 	0.80	% 	 	 	4	 	 	 	0.78	% 	 	 	5	 	 	 	0.75	% 		
2012	  	 	6	 	 	 	1.11	% 	 	 	6	 	 	 	1.05	% 	 	 	6	 	 	 	0.92	% 		
2013	  	 	7	 	 	 	1.10	% 	 	 	7	 	 	 	0.98	% 	 	 	7	 	 	 	0.87	% 		
2014	  	 	8	 	 	 	0.97	% 	 	 	8	 	 	 	0.90	% 	 	 	9	 	 	 	0.79	% 		
2015	  	 	7	 	 	 	0.82	% 	 	 	8	 	 	 	0.74	% 	 	 	8	 	 	 	0.59	% 		
2016	  	 	7	 	 	 	0.60	% 	 	 	7	 	 	 	0.54	% 	 	 	8	 	 	 	0.35	% 		
2017	  	 	7	 	 	 	0.36	% 	 	 	7	 	 	 	0.28	% 	 	 	7	 	 	 	0.11	% 		
2018	  	 	7	 	 	 	0.15	% 	 	 	7	 	 	 	0.07	% 	 	 	3	 	 	 	—  	% 		
2019	  	 	3	 	 	 	0.01	% 	 	 	1	 	 	 	—  	% 	 	 	—  	 	 	 	—  	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.60	% 	 	 	100	% 	 	 	0.57	% 	 	 	100	% 	 	 	0.54	% 		

(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.	
 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Selected Key Performance Measures—Australia Mortgage Insurance Segment
(Australian dollar amounts in millions)

 	  	2019	 	  	2018	 		
 	  	2Q	 	  	1Q	 	 	Total	 	  	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 		
Paid Claims (1)	  			 	  				 				  				 				 				 				 					
Flow	  	$	28	 	  	$	30	 	 	$	58	 	  	$	34	 	 	$	38	 	 	$	33	 	 	$	44	 	 	$	149	 		
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Total Paid Claims	  	$	28	 	  	$	30	 	 	$	58	 	  	$	34	 	 	$	38	 	 	$	33	 	 	$	44	 	 	$	149	 		

Average Paid Claim (in thousands)	  	$	94.1	 	  	$	94.2	 	 				  	$	104.2	 	 	$	117.2	 	 	$	110.1	 	 	$	119.5	 	 					
	 									
Average Reserve Per Delinquency (in thousands)	  	$	37.8	 	  	$	38.4	 	 				  	$	39.0	 	 	$	37.9	 	 	$	38.2	 	 	$	39.4	 	 					
	 									
	Loss Metrics	  			 	  				 				  				 				 				 				 				
Beginning Reserves	  	$	288	 	  	$	279	 	 	$	279	 	  	$	278	 	 	$	279	 	 	$	274	 	 	$	280	 	 	$	280	 		
Paid claims (1)	  	 	(28	) 	  	 	(30	) 	 	 	(58	) 	  	 	(34	) 	 	 	(38	) 	 	 	(33	) 	 	 	(44	) 	 	 	(149	) 		
Increase in reserves	  	 	38	 	  	 	39	 	 	 	77	 	  	 	35	 	 	 	37	 	 	 	38	 	 	 	38	 	 	 	148	 		
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Ending Reserves	  	$	298	 	  	$	288	 	 	$	298	 	  	$	279	 	 	$	278	 	 	$	279	 	 	$	274	 	 	$	279	 		
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
	Loan Amount (2),(3) 	  			 	  				 				  				 				 				 				 				
Over $550K	  	 	19	% 	  	 	18	% 	 				  	 	18	% 	 	 	18	% 	 	 	17	% 	 	 	17	% 	 					
$400K to $550K	  	 	21	 	  	 	21	 	 				  	 	21	 	 	 	21	 	 	 	21	 	 	 	20	 	 					
$250K to $400K	  	 	33	 	  	 	34	 	 				  	 	34	 	 	 	34	 	 	 	34	 	 	 	35	 	 					
$100K to $250K	  	 	22	 	  	 	22	 	 				  	 	22	 	 	 	22	 	 	 	23	 	 	 	23	 	 					
$100K or Less	  	 	5	 	  	 	5	 	 				  	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 					
	  	 	 	 	  	 	 	 	 				  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	 	100	% 	  	 	100	% 	 				  	 	100	% 	 	 	100	% 	 	 	100	% 	 	 	100	% 	 					

Average Primary Loan Size (in thousands) (3) 	  	$	235	 	  	$	233	 	 				  	$	232	 	 	$	231	 	 	$	229	 	 	$	228	 	 					
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.	
 
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U.S. Life Insurance Segment

 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment
(amounts in millions)

 	  	2019	 	 	2018	 	
 	  	2Q	 	  	1Q	 	  	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				  				 				 				 				 				 				
Premiums	  	$	713	 	  	$	709	 	  	$	1,422	 	 	$	716	 	 	$	717	 	 	$	712	 	 	$	722	 	 	$	2,867	 	
Net investment income	  	 	724	 	  	 	701	 	  	 	1,425	 	 	 	690	 	 	 	696	 	 	 	707	 	 	 	688	 	 	 	2,781	 	
Net investment gains (losses)	  	 	(36	) 	  	 	84	 	  	 	48	 	 	 	38	 	 	 	(7	) 	 	 	(10	) 	 	 	8	 	 	 	29	 	
Policy fees and other income	  	 	187	 	  	 	151	 	  	 	338	 	 	 	154	 	 	 	155	 	 	 	169	 	 	 	163	 	 	 	641	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	1,588	 	  	 	1,645	 	  	 	3,233	 	 	 	1,598	 	 	 	1,561	 	 	 	1,578	 	 	 	1,581	 	 	 	6,318	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	1,211	 	  	 	1,236	 	  	 	2,447	 	 	 	1,767	 	 	 	1,248	 	 	 	1,163	 	 	 	1,238	 	 	 	5,416	 	
Interest credited	  	 	106	 	  	 	106	 	  	 	212	 	 	 	113	 	 	 	113	 	 	 	116	 	 	 	119	 	 	 	461	 	
Acquisition and operating expenses, net of deferrals	  	 	142	 	  	 	148	 	  	 	290	 	 	 	153	 	 	 	144	 	 	 	146	 	 	 	141	 	 	 	584	 	
Amortization of deferred acquisition costs and intangibles	  	 	67	 	  	 	66	 	  	 	133	 	 	 	55	 	 	 	53	 	 	 	78	 	 	 	71	 	 	 	257	 	
Interest expense	  	 	4	 	  	 	5	 	  	 	9	 	 	 	4	 	 	 	4	 	 	 	4	 	 	 	4	 	 	 	16	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,530	 	  	 	1,561	 	  	 	3,091	 	 	 	2,092	 	 	 	1,562	 	 	 	1,507	 	 	 	1,573	 	 	 	6,734	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) BEFORE INCOME TAXES	  	 	58	 	  	 	84	 	  	 	142	 	 	 	(494	) 	 	 	(1	) 	 	 	71	 	 	 	8	 	 	 	(416	) 	
Provision (benefit) for income taxes	  	 	19	 	  	 	24	 	  	 	43	 	 	 	(101	) 	 	 	6	 	 	 	21	 	 	 	6	 	 	 	(68	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	39	 	  	 	60	 	  	 	99	 	 	 	(393	) 	 	 	(7	) 	 	 	50	 	 	 	2	 	 	 	(348	) 	
	 								
ADJUSTMENTS TO NET INCOME (LOSS):	  			 	  				  				 				 				 				 				 				
Net investment (gains) losses, net (1)	  	 	35	 	  	 	(86	) 	  	 	(51	) 	 	 	(41	) 	 	 	6	 	 	 	9	 	 	 	(9	) 	 	 	(35	) 	
Expenses related to restructuring	  	 	(1	) 	  	 	4	 	  	 	3	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Taxes on adjustments	  	 	(7	) 	  	 	17	 	  	 	10	 	 	 	9	 	 	 	(2	) 	 	 	(2	) 	 	 	2	 	 	 	7	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	66	 	  	$	(5	) 	  	$	61	 	 	$	(425	) 	 	$	(3)	 	 	$	57	 	 	$	(5)	 	 	$	(376	) 	

 
(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	  	$	36	 	  	$	(84	) 	  	$	(48	) 	 	$	(38	) 	 	$	7	 	 	$	10	 	 	$	(8	) 	 	$	(29	) 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	(1	) 	  	 	(2	) 	  	 	(3	) 	 	 	(3	) 	 	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(6	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment (gains) losses, net	  	$	35	 	  	$	(86	) 	  	$	(51	) 	 	$	(41	) 	 	$	6	 	 	$	9	 	 	$	(9	) 	 	$	(35	) 	

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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment—Long-Term Care Insurance
(amounts in millions)

 	  	2019	 	 	2018	 	
 	  	2Q	 	  	1Q	 	  	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				  				 				 				 				 				 				
Premiums	  	$	640	 	  	$	628	 	  	$	1,268	 	 	$	650	 	 	$	648	 	 	$	632	 	 	$	631	 	 	$	2,561	 	
Net investment income	  	 	428	 	  	 	406	 	  	 	834	 	 	 	398	 	 	 	397	 	 	 	399	 	 	 	382	 	 	 	1,576	 	
Net investment gains (losses)	  	 	(15	) 	  	 	80	 	  	 	65	 	 	 	46	 	 	 	4	 	 	 	3	 	 	 	6	 	 	 	59	 	
Policy fees and other income	  	 	2	 	  	 	—  	 	  	 	2	 	 	 	—  	 	 	 	(1	) 	 	 	1	 	 	 	1	 	 	 	1	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	1,055	 	  	 	1,114	 	  	 	2,169	 	 	 	1,094	 	 	 	1,048	 	 	 	1,035	 	 	 	1,020	 	 	 	4,197	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	896	 	  	 	927	 	  	 	1,823	 	 	 	1,311	 	 	 	944	 	 	 	874	 	 	 	928	 	 	 	4,057	 	
Interest credited	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Acquisition and operating expenses, net of deferrals	  	 	93	 	  	 	101	 	  	 	194	 	 	 	105	 	 	 	99	 	 	 	101	 	 	 	93	 	 	 	398	 	
Amortization of deferred acquisition costs and intangibles	  	 	26	 	  	 	25	 	  	 	51	 	 	 	25	 	 	 	24	 	 	 	22	 	 	 	27	 	 	 	98	 	
Interest expense	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,015	 	  	 	1,053	 	  	 	2,068	 	 	 	1,441	 	 	 	1,067	 	 	 	997	 	 	 	1,048	 	 	 	4,553	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) BEFORE INCOME TAXES	  	 	40	 	  	 	61	 	  	 	101	 	 	 	(347	) 	 	 	(19	) 	 	 	38	 	 	 	(28	) 	 	 	(356	) 	
Provision (benefit) for income taxes	  	 	15	 	  	 	19	 	  	 	34	 	 	 	(69	) 	 	 	1	 	 	 	14	 	 	 	(1	) 	 	 	(55	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	25	 	  	 	42	 	  	 	67	 	 	 	(278	) 	 	 	(20	) 	 	 	24	 	 	 	(27	) 	 	 	(301	) 	
	 								
ADJUSTMENTS TO NET INCOME (LOSS):	  			 	  				  				 				 				 				 				 				
Net investment (gains) losses	  	 	15	 	  	 	(80	) 	  	 	(65	) 	 	 	(46	) 	 	 	(4	) 	 	 	(3	) 	 	 	(6	) 	 	 	(59	) 	
Expenses related to restructuring	  	 	(1	) 	  	 	2	 	  	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Taxes on adjustments	  	 	(2	) 	  	 	16	 	  	 	14	 	 	 	10	 	 	 	—  	 	 	 	1	 	 	 	1	 	 	 	12	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	37	 	  	$	(20	) 	  	$	17	 	 	$	(314	) 	 	$	(24	) 	 	$	22	 	 	$	(32	) 	 	$	(348	) 	

RATIOS:	  				  				  				 				 				 				 				 				
Loss Ratio (1)	  	 	74	% 	  	 	81	% 	  	 	78	% 	 	 	138	% 	 	 	83	% 	 	 	75	% 	 	 	84	% 	 	 	95	% 	
Gross Benefits Ratio (2)	  	 	140	% 	  	 	148	% 	  	 	144	% 	 	 	202	% 	 	 	146	% 	 	 	138	% 	 	 	147	% 	 	 	158	% 	

(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.	
 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment—Life Insurance
(amounts in millions)

 	  	2019	 	 	2018	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				
Premiums	  	$	73	 	  	$	81	 	 	$	154	 	 	$	66	 	 	$	69	 	 	$	80	 	 	$	91	 	 	$	306	 	
Net investment income	  	 	130	 	  	 	133	 	 	 	263	 	 	 	127	 	 	 	128	 	 	 	125	 	 	 	124	 	 	 	504	 	
Net investment gains (losses)	  	 	(3	) 	  	 	10	 	 	 	7	 	 	 	(5	) 	 	 	(4	) 	 	 	(2	) 	 	 	5	 	 	 	(6	) 	
Policy fees and other income	  	 	182	 	  	 	148	 	 	 	330	 	 	 	151	 	 	 	152	 	 	 	164	 	 	 	159	 	 	 	626	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	382	 	  	 	372	 	 	 	754	 	 	 	339	 	 	 	345	 	 	 	367	 	 	 	379	 	 	 	1,430	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	244	 	  	 	242	 	 	 	486	 	 	 	367	 	 	 	239	 	 	 	225	 	 	 	247	 	 	 	1,078	 	
Interest credited	  	 	58	 	  	 	58	 	 	 	116	 	 	 	61	 	 	 	59	 	 	 	60	 	 	 	61	 	 	 	241	 	
Acquisition and operating expenses, net of deferrals	  	 	37	 	  	 	34	 	 	 	71	 	 	 	35	 	 	 	33	 	 	 	33	 	 	 	35	 	 	 	136	 	
Amortization of deferred acquisition costs and intangibles	  	 	28	 	  	 	27	 	 	 	55	 	 	 	14	 	 	 	16	 	 	 	42	 	 	 	29	 	 	 	101	 	
Interest expense	  	 	4	 	  	 	5	 	 	 	9	 	 	 	4	 	 	 	4	 	 	 	4	 	 	 	4	 	 	 	16	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	371	 	  	 	366	 	 	 	737	 	 	 	481	 	 	 	351	 	 	 	364	 	 	 	376	 	 	 	1,572	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) BEFORE INCOME TAXES	  	 	11	 	  	 	6	 	 	 	17	 	 	 	(142	) 	 	 	(6	) 	 	 	3	 	 	 	3	 	 	 	(142	) 	
Provision (benefit) for income taxes	  	 	3	 	  	 	1	 	 	 	4	 	 	 	(30	) 	 	 	(1	) 	 	 	1	 	 	 	—  	 	 	 	(30	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	8	 	  	 	5	 	 	 	13	 	 	 	(112	) 	 	 	(5	) 	 	 	2	 	 	 	3	 	 	 	(112	) 	
	 								
ADJUSTMENTS TO NET INCOME (LOSS):	  			 	  				 				 				 				 				 				 				
Net investment (gains) losses	  	 	3	 	  	 	(10	) 	 	 	(7	) 	 	 	5	 	 	 	4	 	 	 	2	 	 	 	(5	) 	 	 	6	 	
Expenses related to restructuring	  	 	—  	 	  	 	1	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Taxes on adjustments	  	 	(1	) 	  	 	2	 	 	 	1	 	 	 	(1	) 	 	 	(1	) 	 	 	—  	 	 	 	1	 	 	 	(1	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	10	 	  	$	(2	) 	 	$	8	 	 	$	(108	) 	 	$	(2	) 	 	$	4	 	 	$	(1	) 	 	$	(107	) 	

 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment—Fixed Annuities
(amounts in millions)

 	  	2019	 	 	2018	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				
Premiums	  	$	—  	 	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	
Net investment income	  	 	166	 	  	 	162	 	 	 	328	 	 	 	165	 	 	 	171	 	 	 	183	 	 	 	182	 	 	 	701	 	
Net investment gains (losses)	  	 	(18	) 	  	 	(6	) 	 	 	(24	) 	 	 	(3	) 	 	 	(7	) 	 	 	(11	) 	 	 	(3	) 	 	 	(24	) 	
Policy fees and other income	  	 	3	 	  	 	3	 	 	 	6	 	 	 	3	 	 	 	4	 	 	 	4	 	 	 	3	 	 	 	14	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	151	 	  	 	159	 	 	 	310	 	 	 	165	 	 	 	168	 	 	 	176	 	 	 	182	 	 	 	691	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	71	 	  	 	67	 	 	 	138	 	 	 	89	 	 	 	65	 	 	 	64	 	 	 	63	 	 	 	281	 	
Interest credited	  	 	48	 	  	 	48	 	 	 	96	 	 	 	52	 	 	 	54	 	 	 	56	 	 	 	58	 	 	 	220	 	
Acquisition and operating expenses, net of deferrals	  	 	12	 	  	 	13	 	 	 	25	 	 	 	13	 	 	 	12	 	 	 	12	 	 	 	13	 	 	 	50	 	
Amortization of deferred acquisition costs and intangibles	  	 	13	 	  	 	14	 	 	 	27	 	 	 	16	 	 	 	13	 	 	 	14	 	 	 	15	 	 	 	58	 	
Interest expense	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	    144	 	  	 	    142	 	 	 	    286	 	 	 	    170	 	 	 	    144	 	 	 	    146	 	 	 	    149	 	 	 	    609	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) BEFORE INCOME TAXES	  	 	7	 	  	 	17	 	 	 	24	 	 	 	(5	) 	 	 	24	 	 	 	30	 	 	 	33	 	 	 	82	 	
Provision (benefit) for income taxes	  	 	1	 	  	 	4	 	 	 	5	 	 	 	(2	) 	 	 	6	 	 	 	6	 	 	 	7	 	 	 	17	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	6	 	  	 	13	 	 	 	19	 	 	 	(3	) 	 	 	18	 	 	 	24	 	 	 	26	 	 	 	65	 	
	 								
ADJUSTMENTS TO NET INCOME (LOSS):	  			 	  				 				 				 				 				 				 				
Net investment (gains) losses, net (1)	  	 	17	 	  	 	4	 	 	 	21	 	 	 	—  	 	 	 	6	 	 	 	10	 	 	 	2	 	 	 	18	 	
Expenses related to restructuring	  	 	—  	 	  	 	1	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Taxes on adjustments	  	 	(4	) 	  	 	(1	) 	 	 	(5	) 	 	 	—  	 	 	 	(1	) 	 	 	(3	) 	 	 	—  	 	 	 	(4	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	19	 	  	$	17	 	 	$	36	 	 	$	(3	) 	 	$	23	 	 	$	31	 	 	$	28	 	 	$	79	 	

 
(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	  	$	18	 	  	$	6	 	 	$	24	 	 	$	3	 	 	$	7	 	 	$	11	 	 	$	3	 	 	$	24	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	(1	) 	  	 	(2	) 	 	 	(3	) 	 	 	(3	) 	 	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(6	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment (gains) losses, net	  	$	17	 	  	$	4	 	 	$	21	 	 	$	—  	 	 	$	6	 	 	$	10	 	 	$	2	 	 	$	18	 	

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Runoff Segment

 
38

Table of Contents
 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Adjusted Operating Income (Loss)—Runoff Segment
(amounts in millions)

 	  	2019	 	  	2018	 	
 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				
Net investment income	  	$	47	 	  	$	47	 	  	$	94	 	  	$	45	 	  	$	44	 	  	$	43	 	  	$	42	 	  	$	174	 	
Net investment gains (losses)	  	 	(4	) 	  	 	—  	 	  	 	(4	) 	  	 	(15	) 	  	 	(3	) 	  	 	(1	) 	  	 	(14	) 	  	 	(33	) 	
Policy fees and other income	  	 	35	 	  	 	35	 	  	 	70	 	  	 	37	 	  	 	38	 	  	 	38	 	  	 	40	 	  	 	153	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	78	 	  	 	82	 	  	 	160	 	  	 	67	 	  	 	79	 	  	 	80	 	  	 	68	 	  	 	294	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	13	 	  	 	1	 	  	 	14	 	  	 	17	 	  	 	7	 	  	 	7	 	  	 	8	 	  	 	39	 	
Interest credited	  	 	40	 	  	 	41	 	  	 	81	 	  	 	39	 	  	 	38	 	  	 	36	 	  	 	37	 	  	 	150	 	
Acquisition and operating expenses, net of deferrals	  	 	13	 	  	 	13	 	  	 	26	 	  	 	14	 	  	 	14	 	  	 	14	 	  	 	15	 	  	 	57	 	
Amortization of deferred acquisition costs and intangibles	  	 	4	 	  	 	2	 	  	 	6	 	  	 	13	 	  	 	5	 	  	 	8	 	  	 	7	 	  	 	33	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	70	 	  	 	57	 	  	 	127	 	  	 	83	 	  	 	64	 	  	 	65	 	  	 	67	 	  	 	279	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) BEFORE INCOME TAXES	  	 	8	 	  	 	25	 	  	 	33	 	  	 	(16	) 	  	 	15	 	  	 	15	 	  	 	1	 	  	 	15	 	
Provision (benefit) for income taxes	  	 	1	 	  	 	5	 	  	 	6	 	  	 	(3	) 	  	 	2	 	  	 	3	 	  	 	—  	 	  	 	2	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
NET INCOME (LOSS)	  	 	7	 	  	 	20	 	  	 	27	 	  	 	(13	) 	  	 	13	 	  	 	12	 	  	 	1	 	  	 	13	 	
	 								
ADJUSTMENTS TO NET INCOME (LOSS):	  			 	  				  				  				  				  				  				  				
Net investment (gains) losses, net (1)	  	 	2	 	  	 	—  	 	  	 	2	 	  	 	13	 	  	 	1	 	  	 	1	 	  	 	12	 	  	 	27	 	
Taxes on adjustments	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(2	) 	  	 	—  	 	  	 	—  	 	  	 	(3	) 	  	 	(5	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	9	 	  	$	20	 	  	$	29	 	  	$	(2	) 	  	$	14	 	  	$	13	 	  	$	10	 	  	$	35	 	

 
(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	 	  	$	—  	 	  	$	4	 	  	$	15	 	  	$	3	 	  	$	1	 	  	$	14	 	  	$	33	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	(2	) 	  	 	—  	 	  	 	(2	) 	  	 	(2	) 	  	 	(2	) 	  	 	—  	 	  	 	(2	) 	  	 	(6	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net investment (gains) losses, net	  	$	2	 	  	$	—  	 	  	$	2	 	  	$	13	 	  	$	1	 	  	$	1	 	  	$	12	 	  	$	27	 	

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Corporate and Other

40

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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Adjusted Operating Loss—Corporate and Other (1)
(amounts in millions)

 	  	2019	 	  	2018	 	
 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				
Premiums	  	$	2	 	  	$	2	 	  	$	4	 	  	$	2	 	  	$	1	 	  	$	3	 	  	$	2	 	  	$	8	 	
Net investment income	  	 	3	 	  	 	3	 	  	 	6	 	  	 	3	 	  	 	1	 	  	 	3	 	  	 	2	 	  	 	9	 	
Net investment gains (losses)	  	 	(7	) 	  	 	(21	) 	  	 	(28	) 	  	 	18	 	  	 	(7	) 	  	 	—  	 	  	 	(1	) 	  	 	10	 	
Policy fees and other income	  	 	—  	 	  	 	1	 	  	 	1	 	  	 	(1	) 	  	 	(1	) 	  	 	1	 	  	 	(2	) 	  	 	(3	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	(2)	 	  	(15)	 	  	(17)	 	  	22	 	  	(6)	 	  	7	 	  	1	 	  	24	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	1	 	  	 	1	 	  	 	2	 	  	 	2	 	  	 	1	 	  	 	1	 	  	 	1	 	  	 	5	 	
Acquisition and operating expenses, net of deferrals	  	 	9	 	  	 	7	 	  	 	16	 	  	 	18	 	  	 	12	 	  	 	11	 	  	 	11	 	  	 	52	 	
Amortization of deferred acquisition costs and intangibles	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	1	 	  	 	1	 	
Interest expense	  	 	62	 	  	 	61	 	  	 	123	 	  	 	63	 	  	 	61	 	  	 	67	 	  	 	65	 	  	 	256	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	72	 	  	69	 	  	141	 	  	83	 	  	74	 	  	79	 	  	78	 	  	314	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
LOSS BEFORE INCOME TAXES	  	 	(74	) 	  	 	(84	) 	  	 	(158	) 	  	 	(61	) 	  	 	(80	) 	  	 	(72	) 	  	 	(77	) 	  	 	(290	) 	
Provision (benefit) for income taxes	  	 	5	 	  	 	5	 	  	 	10	 	  	 	(17	) 	  	 	(28	) 	  	 	3	 	  	 	(17	) 	  	 	(59	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
NET LOSS	  	 	(79	) 	  	 	(89	) 	  	 	(168	) 	  	 	(44	) 	  	 	(52	) 	  	 	(75	) 	  	 	(60	) 	  	 	(231	) 	
	 								
ADJUSTMENTS TO NET LOSS:	  			 	  				  				  				  				  				  				  				
Net investment (gains) losses	  	 	7	 	  	 	21	 	  	 	28	 	  	 	(18	) 	  	 	7	 	  	 	—  	 	  	 	1	 	  	 	(10	) 	
Expenses related to restructuring	  	 	1	 	  	 	—  	 	  	 	1	 	  	 	—  	 	  	 	2	 	  	 	—  	 	  	 	—  	 	  	 	2	 	
Fees associated with bond consent solicitation	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	6	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	6	 	
Taxes on adjustments	  	 	(1	) 	  	 	(5	) 	  	 	(6	) 	  	 	2	 	  	 	(2	) 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING LOSS	  	$	(72	) 	  	$	(73	) 	  	$	(145	) 	  	$	(54	) 	  	$	(45	) 	  	$	(75	) 	  	$	(59	) 	  	$	(233	) 	

 

(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.	
 
41

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Additional Financial Data

 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Investments Summary
(amounts in millions)

 	  	June 30, 2019	 	  	March 31, 2019	 	 	December 31, 2018	 	 	September 30, 2018	 	 	June 30, 2018	 		
 	  	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	  	$	35,114	 	  	 	45	% 	  	$	33,634	 	  	 	45	% 	 	$	32,630	 	 	 	45	% 	 	$	32,496	 	  	 	45	% 	 	$	32,813	 	  	 	45	% 		
Private fixed maturity securities	  	 	14,501	 	  	 	19	 	  	 	13,838	 	  	 	19	 	 	 	13,000	 	 	 	18	 	 	 	12,628	 	  	 	17	 	 	 	12,362	 	  	 	17	 		
Residential mortgage-backed securities (1)	  	 	2,697	 	  	 	4	 	  	 	2,908	 	  	 	4	 	 	 	2,998	 	 	 	4	 	 	 	3,178	 	  	 	5	 	 	 	3,522	 	  	 	5	 		
Commercial mortgage-backed securities	  	 	2,970	 	  	 	4	 	  	 	2,943	 	  	 	4	 	 	 	3,007	 	 	 	4	 	 	 	3,146	 	  	 	4	 	 	 	3,340	 	  	 	5	 		
Other asset-backed securities	  	 	3,698	 	  	 	5	 	  	 	3,405	 	  	 	5	 	 	 	3,414	 	 	 	5	 	 	 	3,044	 	  	 	4	 	 	 	2,950	 	  	 	4	 		
State and political subdivisions	  	 	2,636	 	  	 	3	 	  	 	2,546	 	  	 	3	 	 	 	2,552	 	 	 	4	 	 	 	2,795	 	  	 	4	 	 	 	2,855	 	  	 	4	 		
Non-investment grade fixed maturity securities	  	 	2,158	 	  	 	3	 	  	 	2,086	 	  	 	3	 	 	 	2,060	 	 	 	3	 	 	 	2,117	 	  	 	3	 	 	 	2,190	 	  	 	3	 		
Equity securities:	  				  			 	  				  				 				 				 				  				 				  					
Common stocks and mutual funds	  	 	111	 	  	 	—  	 	  	 	103	 	  	 	—  	 	 	 	141	 	 	 	—  	 	 	 	171	 	  	 	—  	 	 	 	164	 	  	 	—  	 		
Preferred stocks	  	 	533	 	  	 	1	 	  	 	532	 	  	 	1	 	 	 	514	 	 	 	1	 	 	 	612	 	  	 	1	 	 	 	594	 	  	 	1	 		
Commercial mortgage loans	  	 	6,963	 	  	 	9	 	  	 	6,929	 	  	 	9	 	 	 	6,687	 	 	 	9	 	 	 	6,568	 	  	 	9	 	 	 	6,480	 	  	 	9	 		
Restricted commercial mortgage loans related to a securitization entity	  	 	56	 	  	 	—  	 	  	 	59	 	  	 	—  	 	 	 	62	 	 	 	—  	 	 	 	87	 	  	 	—  	 	 	 	90	 	  	 	—  	 		
Policy loans	  	 	2,076	 	  	 	3	 	  	 	1,994	 	  	 	3	 	 	 	1,861	 	 	 	3	 	 	 	1,859	 	  	 	3	 	 	 	1,872	 	  	 	3	 		
Cash, cash equivalents, restricted cash and short-term investments	  	 	2,211	 	  	 	3	 	  	 	2,360	 	  	 	3	 	 	 	2,407	 	 	 	3	 	 	 	2,864	 	  	 	4	 	 	 	2,951	 	  	 	4	 		
Securities lending	  	 	113	 	  	 	—  	 	  	 	106	 	  	 	—  	 	 	 	103	 	 	 	—  	 	 	 	166	 	  	 	—  	 	 	 	211	 	  	 	—  	 		
Other invested assets:	 	Limited partnerships	  	 	512	 	  	 	1	 	  	 	462	 	  	 	1	 	 	 	409	 	 	 	1	 	 	 	372	 	  	 	1	 	 	 	335	 	  	 	—  	 		
	 	Derivatives: (2)	  				  			 	  				  				 				 				 				  				 				  					
	 	Long-term care (LTC) forward starting swap—cash flow	  	 	144	 	  	 	—  	 	  	 	59	 	  	 	—  	 	 	 	42	 	 	 	—  	 	 	 	36	 	  	 	—  	 	 	 	49	 	  	 	—  	 		
	 	Other cash flow	  	 	5	 	  	 	—  	 	  	 	3	 	  	 	—  	 	 	 	6	 	 	 	—  	 	 	 	2	 	  	 	—  	 	 	 	2	 	  	 	—  	 		
	 	Equity index options—non-qualified	  	 	65	 	  	 	—  	 	  	 	60	 	  	 	—  	 	 	 	39	 	 	 	—  	 	 	 	80	 	  	 	—  	 	 	 	70	 	  	 	—  	 		
	 	Other non-qualified	  	 	66	 	  	 	—  	 	  	 	65	 	  	 	—  	 	 	 	91	 	 	 	—  	 	 	 	127	 	  	 	—  	 	 	 	109	 	  	 	—  	 		
	 	Other	  	 	357	 	  	 	—  	 	  	 	314	 	  	 	—  	 	 	 	268	 	 	 	—  	 	 	 	212	 	  	 	—  	 	 	 	166	 	  	 	—  	 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total invested assets and cash	  	$	76,986	 	  	 	100	% 	  	$	74,406	 	  	 	100	% 	 	$	72,291	 	 	 	100	% 	 	$	72,560	 	  	 	100	% 	 	$	73,125	 	  	 	100	% 		
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
	Public Fixed Maturity Securities—Credit Quality:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
	NRSRO (3) Designation	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
AAA	 		  	$	10,856	 	  	 	24	% 	  	$	10,778	 	  	 	25	% 	 	$	10,799	 	 	 	26	% 	 	$	11,642	 	  	 	28	% 	 	$	12,269	 	  	 	29	% 		
AA	 		  	 	4,202	 	  	 	10	 	  	 	4,084	 	  	 	10	 	 	 	4,117	 	 	 	10	 	 	 	4,358	 	  	 	10	 	 	 	4,428	 	  	 	10	 		
A	 		  	 	12,555	 	  	 	29	 	  	 	12,301	 	  	 	29	 	 	 	12,005	 	 	 	29	 	 	 	11,984	 	  	 	28	 	 	 	12,174	 	  	 	28	 		
BBB	 		  	 	15,171	 	  	 	34	 	  	 	14,240	 	  	 	33	 	 	 	13,669	 	 	 	32	 	 	 	12,994	 	  	 	31	 	 	 	12,929	 	  	 	30	 		
BB	 		  	 	1,128	 	  	 	3	 	  	 	1,081	 	  	 	3	 	 	 	1,149	 	 	 	3	 	 	 	1,156	 	  	 	3	 	 	 	1,221	 	  	 	3	 		
B	 		  	 	76	 	  	 	—  	 	  	 	76	 	  	 	—  	 	 	 	93	 	 	 	—  	 	 	 	130	 	  	 	—  	 	 	 	123	 	  	 	—  	 		
CCC and lower	 		  	 	25	 	  	 	—  	 	  	 	25	 	  	 	—  	 	 	 	25	 	 	 	—  	 	 	 	27	 	  	 	—  	 	 	 	31	 	  	 	—  	 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total public fixed maturity securities	  	$	44,013	 	  	 	100	% 	  	$	42,585	 	  	 	100	% 	 	$	41,857	 	 	 	100	% 	 	$	42,291	 	  	 	100	% 	 	$	43,175	 	  	 	100	% 		
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
	Private Fixed Maturity Securities—Credit Quality:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
	NRSRO (3) Designation	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
AAA	 		  	$	2,726	 	  	 	14	% 	  	$	2,545	 	  	 	14	% 	 	$	2,540	 	 	 	14	% 	 	$	2,109	 	  	 	12	% 	 	$	2,045	 	  	 	12	% 		
AA	 		  	 	2,507	 	  	 	13	 	  	 	2,364	 	  	 	13	 	 	 	2,198	 	 	 	13	 	 	 	2,224	 	  	 	13	 	 	 	2,156	 	  	 	13	 		
A	 		  	 	5,496	 	  	 	28	 	  	 	5,228	 	  	 	28	 	 	 	4,866	 	 	 	27	 	 	 	4,695	 	  	 	27	 	 	 	4,750	 	  	 	28	 		
BBB	 		  	 	8,103	 	  	 	41	 	  	 	7,734	 	  	 	41	 	 	 	7,407	 	 	 	42	 	 	 	7,281	 	  	 	43	 	 	 	7,091	 	  	 	42	 		
BB	 		  	 	869	 	  	 	4	 	  	 	843	 	  	 	4	 	 	 	737	 	 	 	4	 	 	 	724	 	  	 	4	 	 	 	733	 	  	 	4	 		
B	 		  	 	58	 	  	 	—  	 	  	 	59	 	  	 	—  	 	 	 	54	 	 	 	—  	 	 	 	78	 	  	 	1	 	 	 	80	 	  	 	1	 		
CCC and lower	 		  	 	2	 	  	 	—  	 	  	 	2	 	  	 	—  	 	 	 	2	 	 	 	—  	 	 	 	2	 	  	 	—  	 	 	 	2	 	  	 	—  	 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total private fixed maturity securities	  	$	19,761	 	  	 	100	% 	  	$	18,775	 	  	 	100	% 	 	$	17,804	 	 	 	100	% 	 	$	17,113	 	  	 	100	% 	 	$	16,857	 	  	 	100	% 		

 

(1)  	The company does not have any material exposure to residential mortgage-backed securities collateralized debt obligations (CDOs).	
(2)  	Certain derivative balances have been reclassified as of June 30, 2018 to conform to the current period presentation.	
(3)  	Nationally Recognized Statistical Rating Organizations.	
 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Fixed Maturity Securities Summary
(amounts in millions)

 	 	June 30, 2019	 	 	March 31, 2019	 	 	December 31, 2018	 	 	September 30, 2018	 	 	June 30, 2018	 	
 	 	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	 	$	4,987	 	 	 	8	%   	 	$	4,731	 	 	 	8	% 	 	$	4,631	 	 	 	8	% 	 	$	5,181	 	 	 	9	% 	 	$	5,353	 	 	 	9	% 	
State and political subdivisions	 	 	2,636	 	 	 	4	 	 	 	2,546	 	 	 	4	 	 	 	2,552	 	 	 	4	 	 	 	2,795	 	 	 	5	 	 	 	2,855	 	 	 	5	 	
Foreign government	 	 	2,649	 	 	 	4	 	 	 	2,518	 	 	 	4	 	 	 	2,393	 	 	 	4	 	 	 	2,289	 	 	 	4	 	 	 	2,380	 	 	 	4	 	
U.S. corporate	 	 	31,401	 	 	 	49	 	 	 	29,941	 	 	 	49	 	 	 	28,762	 	 	 	48	 	 	 	27,538	 	 	 	46	 	 	 	27,569	 	 	 	46	 	
Foreign corporate	 	 	12,647	 	 	 	20	 	 	 	12,286	 	 	 	20	 	 	 	11,837	 	 	 	20	 	 	 	12,173	 	 	 	20	 	 	 	12,002	 	 	 	20	 	
Residential mortgage-backed securities	 	 	2,738	 	 	 	4	 	 	 	2,950	 	 	 	5	 	 	 	3,044	 	 	 	5	 	 	 	3,222	 	 	 	6	 	 	 	3,567	 	 	 	6	 	
Commercial mortgage-backed securities	 	 	2,989	 	 	 	5	 	 	 	2,962	 	 	 	5	 	 	 	3,016	 	 	 	5	 	 	 	3,156	 	 	 	5	 	 	 	3,349	 	 	 	5	 	
Other asset-backed securities	 	 	3,727	 	 	 	6	 	 	 	3,426	 	 	 	5	 	 	 	3,426	 	 	 	6	 	 	 	3,050	 	 	 	5	 	 	 	2,957	 	 	 	5	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturity securities	 	$	63,774	 	 	 	100	% 	 	$	61,360	 	 	 	100	% 	 	$	59,661	 	 	 	100	% 	 	$	59,404	 	 	 	100	% 	 	$	60,032	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate Bond Holdings—Industry Sector:	 				 			 	 				 				 				 				 				 				 				 				
	 	 									
Investment Grade:	 				 			 	 				 				 				 				 				 				 				 				
Finance and insurance	 	$	10,009	 	 	 	23	% 	 	$	9,605	 	 	 	22	% 	 	$	9,062	 	 	 	22	% 	 	$	8,712	 	 	 	22	% 	 	$	8,616	 	 	 	22	% 	
Utilities	 	 	5,944	 	 	 	13	 	 	 	5,718	 	 	 	14	 	 	 	5,665	 	 	 	14	 	 	 	5,674	 	 	 	14	 	 	 	5,785	 	 	 	15	 	
Energy	 	 	3,898	 	 	 	9	 	 	 	3,757	 	 	 	9	 	 	 	3,449	 	 	 	8	 	 	 	3,358	 	 	 	8	 	 	 	3,310	 	 	 	8	 	
Consumer—non-cyclical	 	 	6,107	 	 	 	14	 	 	 	5,798	 	 	 	14	 	 	 	5,595	 	 	 	14	 	 	 	5,232	 	 	 	13	 	 	 	5,042	 	 	 	13	 	
Consumer—cyclical	 	 	2,055	 	 	 	5	 	 	 	1,950	 	 	 	5	 	 	 	1,900	 	 	 	5	 	 	 	1,887	 	 	 	5	 	 	 	1,875	 	 	 	5	 	
Capital goods	 	 	3,158	 	 	 	7	 	 	 	3,005	 	 	 	7	 	 	 	2,876	 	 	 	7	 	 	 	2,788	 	 	 	7	 	 	 	2,815	 	 	 	7	 	
Industrial	 	 	2,142	 	 	 	5	 	 	 	2,029	 	 	 	5	 	 	 	1,957	 	 	 	5	 	 	 	1,899	 	 	 	5	 	 	 	2,028	 	 	 	5	 	
Technology and communications	 	 	3,964	 	 	 	9	 	 	 	3,720	 	 	 	9	 	 	 	3,582	 	 	 	9	 	 	 	3,424	 	 	 	9	 	 	 	3,346	 	 	 	8	 	
Transportation	 	 	2,244	 	 	 	5	 	 	 	2,164	 	 	 	5	 	 	 	2,017	 	 	 	5	 	 	 	1,945	 	 	 	5	 	 	 	1,973	 	 	 	5	 	
Other	 	 	2,571	 	 	 	6	 	 	 	2,602	 	 	 	6	 	 	 	2,625	 	 	 	6	 	 	 	2,879	 	 	 	7	 	 	 	2,836	 	 	 	7	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	42,092	 	 	 	96	 	 	 	40,348	 	 	 	96	 	 	 	38,728	 	 	 	95	 	 	 	37,798	 	 	 	95	 	 	 	37,626	 	 	 	95	 	

Non-Investment Grade:	 				 			 	 				 				 				 				 				 				 				 				
Finance and insurance	 	 	216	 	 	 	1	 	 	 	200	 	 	 	—  	 	 	 	183	 	 	 	—  	 	 	 	177	 	 	 	—  	 	 	 	196	 	 	 	—  	 	
Utilities	 	 	100	 	 	 	—  	 	 	 	94	 	 	 	—  	 	 	 	51	 	 	 	—  	 	 	 	57	 	 	 	—  	 	 	 	56	 	 	 	—  	 	
Energy	 	 	331	 	 	 	1	 	 	 	308	 	 	 	1	 	 	 	339	 	 	 	1	 	 	 	357	 	 	 	1	 	 	 	359	 	 	 	1	 	
Consumer—non-cyclical	 	 	155	 	 	 	—  	 	 	 	168	 	 	 	1	 	 	 	192	 	 	 	1	 	 	 	193	 	 	 	1	 	 	 	201	 	 	 	1	 	
Consumer—cyclical	 	 	243	 	 	 	1	 	 	 	237	 	 	 	1	 	 	 	217	 	 	 	1	 	 	 	220	 	 	 	1	 	 	 	220	 	 	 	1	 	
Capital goods	 	 	157	 	 	 	—  	 	 	 	146	 	 	 	—  	 	 	 	130	 	 	 	—  	 	 	 	154	 	 	 	—  	 	 	 	157	 	 	 	—  	 	
Industrial	 	 	211	 	 	 	—  	 	 	 	193	 	 	 	—  	 	 	 	226	 	 	 	1	 	 	 	219	 	 	 	1	 	 	 	232	 	 	 	1	 	
Technology and communications	 	 	465	 	 	 	1	 	 	 	452	 	 	 	1	 	 	 	438	 	 	 	1	 	 	 	448	 	 	 	1	 	 	 	442	 	 	 	1	 	
Transportation	 	 	8	 	 	 	—  	 	 	 	13	 	 	 	—  	 	 	 	23	 	 	 	—  	 	 	 	13	 	 	 	—  	 	 	 	6	 	 	 	—  	 	
Other	 	 	70	 	 	 	—  	 	 	 	68	 	 	 	—  	 	 	 	72	 	 	 	—  	 	 	 	75	 	 	 	—  	 	 	 	76	 	 	 	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	1,956	 	 	 	4	 	 	 	1,879	 	 	 	4	 	 	 	1,871	 	 	 	5	 	 	 	1,913	 	 	 	5	 	 	 	1,945	 	 	 	5	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	$	44,048	 	 	 	100	% 	 	$	42,227	 	 	 	100	% 	 	$	40,599	 	 	 	100	% 	 	$	39,711	 	 	 	100	% 	 	$	39,571	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed Maturity Securities—Contractual Maturity Dates:	 				 			 	 				 				 				 				 				 				 				 				
	 	 									
Due in one year or less	 	$	1,973	 	 	 	3	% 	 	$	2,021	 	 	 	3	% 	 	$	1,874	 	 	 	3	% 	 	$	1,719	 	 	 	3	% 	 	$	1,701	 	 	 	3	% 	
Due after one year through five years	 	 	11,602	 	 	 	18	 	 	 	11,105	 	 	 	18	 	 	 	10,952	 	 	 	18	 	 	 	10,987	 	 	 	18	 	 	 	11,149	 	 	 	19	 	
Due after five years through ten years	 	 	13,197	 	 	 	21	 	 	 	12,770	 	 	 	21	 	 	 	12,463	 	 	 	21	 	 	 	12,531	 	 	 	21	 	 	 	12,601	 	 	 	21	 	
Due after ten years	 	 	27,548	 	 	 	43	 	 	 	26,126	 	 	 	43	 	 	 	24,886	 	 	 	42	 	 	 	24,739	 	 	 	42	 	 	 	24,708	 	 	 	41	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	54,320	 	 	 	85	 	 	 	52,022	 	 	 	85	 	 	 	50,175	 	 	 	84	 	 	 	49,976	 	 	 	84	 	 	 	50,159	 	 	 	84	 	
Mortgage and asset-backed securities	 	 	9,454	 	 	 	15	 	 	 	9,338	 	 	 	15	 	 	 	9,486	 	 	 	16	 	 	 	9,428	 	 	 	16	 	 	 	9,873	 	 	 	16	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturity securities	 	$	63,774	 	 	 	100	% 	 	$	61,360	 	 	 	100	% 	 	$	59,661	 	 	 	100	% 	 	$	59,404	 	 	 	100	% 	 	$	60,032	 	 	 	100	% 	

 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
General Account U.S. GAAP Net Investment Income Yields
(amounts in millions)

 	  	2019	 	 	2018	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
U.S. GAAP Net Investment Income	  			 	  				 				 				 				 				 				 				
Fixed maturity securities—taxable	  	$	665	 	  	$	643	 	 	$	1,308	 	 	$	648	 	 	$	643	 	 	$	651	 	 	$	635	 	 	$	2,577	 	
Fixed maturity securities—non-taxable	  	 	2	 	  	 	2	 	 	 	4	 	 	 	2	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	11	 	
Commercial mortgage loans	  	 	84	 	  	 	81	 	 	 	165	 	 	 	80	 	 	 	81	 	 	 	77	 	 	 	82	 	 	 	320	 	
Restricted commercial mortgage loans related to a securitization entity	  	 	1	 	  	 	1	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	7	 	
Equity securities	  	 	10	 	  	 	9	 	 	 	19	 	 	 	9	 	 	 	11	 	 	 	10	 	 	 	10	 	 	 	40	 	
Other invested assets	  	 	47	 	  	 	44	 	 	 	91	 	 	 	49	 	 	 	41	 	 	 	42	 	 	 	37	 	 	 	169	 	
Limited partnerships	  	 	12	 	  	 	15	 	 	 	27	 	 	 	(4	) 	 	 	3	 	 	 	11	 	 	 	2	 	 	 	12	 	
Policy loans	  	 	45	 	  	 	46	 	 	 	91	 	 	 	44	 	 	 	41	 	 	 	41	 	 	 	43	 	 	 	169	 	
Cash, cash equivalents, restricted cash and short-term investments	  	 	11	 	  	 	12	 	 	 	23	 	 	 	12	 	 	 	13	 	 	 	14	 	 	 	12	 	 	 	51	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross investment income before expenses and fees	  	 	877	 	  	 	853	 	 	 	1,730	 	 	 	842	 	 	 	837	 	 	 	851	 	 	 	826	 	 	 	3,356	 	
Expenses and fees	  	 	(25	) 	  	 	(24	) 	 	 	(49	) 	 	 	(27	) 	 	 	(22	) 	 	 	(23	) 	 	 	(22	) 	 	 	(94	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment income	  	$	852	 	  	$	829	 	 	$	1,681	 	 	$	815	 	 	$	815	 	 	$	828	 	 	$	804	 	 	$	3,262	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Annualized Yields	  			 	  				 				 				 				 				 				 				
Fixed maturity securities—taxable	  	 	4.6	% 	  	 	4.5	% 	 	 	4.5	% 	 	 	4.5	% 	 	 	4.5	% 	 	 	4.5	% 	 	 	4.4	% 	 	 	4.5	% 	
Fixed maturity securities—non-taxable	  	 	6.1	% 	  	 	6.1	% 	 	 	6.1	% 	 	 	3.7	% 	 	 	3.9	% 	 	 	3.8	% 	 	 	3.7	% 	 	 	4.0	% 	
Commercial mortgage loans	  	 	4.8	% 	  	 	4.8	% 	 	 	4.8	% 	 	 	4.8	% 	 	 	5.0	% 	 	 	4.8	% 	 	 	5.2	% 	 	 	4.9	% 	
Restricted commercial mortgage loans related to a securitization entity	  	 	7.0	% 	  	 	6.7	% 	 	 	6.8	% 	 	 	10.8	% 	 	 	4.5	% 	 	 	8.4	% 	 	 	7.8	% 	 	 	7.9	% 	
Equity securities	  	 	6.3	% 	  	 	5.6	% 	 	 	5.9	% 	 	 	5.0	% 	 	 	5.7	% 	 	 	5.1	% 	 	 	5.1	% 	 	 	5.3	% 	
Other invested assets (1)	  	 	56.1	% 	  	 	65.7	% 	 	 	61.1	% 	 	 	99.0	% 	 	 	107.9	% 	 	 	150.0	% 	 	 	129.8	% 	 	 	111.9	% 	
Limited partnerships (2)	  	 	9.9	% 	  	 	13.8	% 	 	 	11.7	% 	 	 	(4.1	)% 	 	 	3.4	% 	 	 	13.8	% 	 	 	2.9	% 	 	 	3.6	% 	
Policy loans	  	 	8.8	% 	  	 	9.5	% 	 	 	9.2	% 	 	 	9.5	% 	 	 	8.8	% 	 	 	9.0	% 	 	 	9.6	% 	 	 	9.2	% 	
Cash, cash equivalents, restricted cash and short-term investments	  	 	1.9	% 	  	 	2.0	% 	 	 	2.0	% 	 	 	1.8	% 	 	 	1.8	% 	 	 	1.7	% 	 	 	1.3	% 	 	 	1.6	% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross investment income before expenses and fees	  	 	5.0	% 	  	 	4.8	% 	 	 	4.9	% 	 	 	4.8	% 	 	 	4.8	% 	 	 	4.8	% 	 	 	4.8	% 	 	 	4.8	% 	
Expenses and fees	  	 	(0.2	)% 	  	 	(0.1	)% 	 	 	(0.1	)% 	 	 	(0.2	)% 	 	 	(0.2	)% 	 	 	(0.1	)% 	 	 	(0.2	)% 	 	 	(0.2	)% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment income	  	 	4.8	% 	  	 	4.7	% 	 	 	4.8	% 	 	 	4.6	% 	 	 	4.6	% 	 	 	4.7	% 	 	 	4.6	% 	 	 	4.6	% 	

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 49 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.	
 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Net Investment Gains (Losses), Net—Detail
(amounts in millions)

 	  	2019	 	 	2018	 	
 	  	2Q	 	  	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Net realized gains (losses) on available-for-sale securities:	  			 	  				 				 				 				 				 				 				
Fixed maturity securities:	  			 	  				 				 				 				 				 				 				
U.S. corporate	  	$	(15	) 	  	$	30	 	 	$	15	 	 	$	10	 	 	$	(6	) 	 	$	(7	) 	 	$	(3	) 	 	$	(6	) 	
U.S. government, agencies and government-sponsored enterprises	  	 	2	 	  	 	33	 	 	 	35	 	 	 	54	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	55	 	
Foreign corporate	  	 	(1	) 	  	 	(1	) 	 	 	(2	) 	 	 	(6	) 	 	 	—  	 	 	 	(2	) 	 	 	(3	) 	 	 	(11	) 	
Foreign government	  	 	11	 	  	 	1	 	 	 	12	 	 	 	(4	) 	 	 	(2	) 	 	 	—  	 	 	 	—  	 	 	 	(6	) 	
State and political subdivisions	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	
Mortgage-backed securities	  	 	1	 	  	 	(2	) 	 	 	(1	) 	 	 	(5	) 	 	 	(2	) 	 	 	2	 	 	 	(2	) 	 	 	(7	) 	
Asset-backed securities	  	 	—  	 	  	 	(1	) 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	(1	) 	
Foreign exchange	  	 	1	 	  	 	(1	) 	 	 	—  	 	 	 	2	 	 	 	1	 	 	 	—  	 	 	 	(1	) 	 	 	2	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total net realized gains (losses) on available-for-sale securities	  	 	(1	) 	  	 	59	 	 	 	58	 	 	 	50	 	 	 	(8	) 	 	 	(8	) 	 	 	(9	) 	 	 	25	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net realized gains (losses) on equity securities sold	  	 	—  	 	  	 	3	 	 	 	3	 	 	 	1	 	 	 	—  	 	 	 	8	 	 	 	2	 	 	 	11	 	
Net unrealized gains (losses) on equity securities still held	  	 	(12	) 	  	 	8	 	 	 	(4	) 	 	 	(83	) 	 	 	—  	 	 	 	3	 	 	 	(18	) 	 	 	(98	) 	
Limited partnerships	  	 	(11	) 	  	 	15	 	 	 	4	 	 	 	3	 	 	 	3	 	 	 	(2	) 	 	 	7	 	 	 	11	 	
Commercial mortgage loans	  	 	1	 	  	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Derivative instruments	  	 	(22	) 	  	 	(10	) 	 	 	(32	) 	 	 	(85	) 	 	 	18	 	 	 	(15	) 	 	 	(13	) 	 	 	(95	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment gains (losses), gross	  	 	(45	) 	  	 	74	 	 	 	29	 	 	 	(114	) 	 	 	13	 	 	 	(14	) 	 	 	(31	) 	 	 	(146	) 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	3	 	  	 	2	 	 	 	5	 	 	 	5	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	12	 	
Adjustment for net investment (gains) losses attributable to noncontrolling interests	  	 	(1	) 	  	 	(5	) 	 	 	(6	) 	 	 	67	 	 	 	(13	) 	 	 	1	 	 	 	11	 	 	 	66	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment gains (losses), net	  	$	(43	) 	  	$	71	 	 	$	28	 	 	$	(42	) 	 	$	3	 	 	$	(12	) 	 	$	(17	) 	 	$	(68	) 	

 
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Reconciliations of Non-GAAP Measures

 
 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Reconciliation of Operating ROE
(amounts in millions)

	Twelve Month Rolling Average ROE	  	Twelve months ended	 	
 	  	June 30,
2019	 	  	March 31,
2019	 	  	December 31,
2018	 	 	September 30,
2018	 	  	June 30,
2018	 		
U.S. GAAP Basis ROE	  				  				  				 				  					
Net income available to Genworth Financial, Inc.’s common stockholders for the twelve months ended (1)	  	$	159	 	  	$	181	 	  	$	119	 	 	$	801	 	  	$	762	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (2)	  	$	10,609	 	  	$	10,539	 	  	$	10,500	 	 	$	10,426	 	  	$	10,264	 		
U.S. GAAP Basis ROE (1)/(2)	  	 	1.5	% 	  	 	1.7	% 	  	 	1.1	% 	 	 	7.7	% 	  	 	7.4	% 		
							
Operating ROE	  				  				  				 				  					
Adjusted operating income for the twelve months ended (1)	  	$	179	 	  	$	175	 	  	$	179	 	 	$	796	 	  	$	727	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (2)	  	$	10,609	 	  	$	10,539	 	  	$	10,500	 	 	$	10,426	 	  	$	10,264	 		
Operating ROE (1)/(2)	  	 	1.7	% 	  	 	1.7	% 	  	 	1.7	% 	 	 	7.6	% 	  	 	7.1	% 		
			
	Quarterly Average ROE	  	Three months ended	 	
 	  	June 30,
2019	 	  	March 31,
2019	 	  	December 31,
2018	 	 	September 30,
2018	 	  	June 30,
2018	 		
U.S. GAAP Basis ROE	  				  				  				 				  					
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended (3)	  	$	168	 	  	$	174	 	  	$	(329	) 	 	$	146	 	  	$	190	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (4)	  	$	10,663	 	  	$	10,494	 	  	$	10,569	 	 	$	10,657	 	  	$	10,487	 		
Annualized U.S. GAAP Quarterly Basis ROE (3)/(4)	  	 	6.3	% 	  	 	6.6	% 	  	 	(12.5	)% 	 	 	5.5	% 	  	 	7.2	% 		
							
Operating ROE	  				  				  				 				  					
Adjusted operating income (loss) for the period ended (3)	  	$	204	 	  	$	121	 	  	$	(291	) 	 	$	145	 	  	$	200	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (4)	  	$	10,663	 	  	$	10,494	 	  	$	10,569	 	 	$	10,657	 	  	$	10,487	 		
Annualized Operating Quarterly Basis ROE (3)/(4)	  	 	7.7	% 	  	 	4.6	% 	  	 	(11.0	)% 	 	 	5.4	% 	  	 	7.6	% 		
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.	
 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Reconciliation of Core Yield

 	  	 	  	2019	 	 	2018	 	
	  	(Assets—amounts in billions)	  	 	2Q	 	  	 	1Q	 	 	 	Total	 	 	 	4Q	 	 	 	3Q	 	 	 	2Q	 	 	 	1Q	 	 	 	Total	 	
	  	Reported—Total Invested Assets and Cash	  	$	77.0	 	  	$	74.4	 	 	$	77.0	 	 	$	72.3	 	 	$	72.6	 	 	$	73.1	 	 	$	74.6	 	 	$	72.3	 	
	  	Subtract:	  			 	  				 				 				 				 				 				 				
	  	Securities lending	  	 	0.1	 	  	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.2	 	 	 	0.2	 	 	 	0.2	 	 	 	0.1	 	
	  	Unrealized gains (losses)	  	 	5.9	 	  	 	3.8	 	 	 	5.9	 	 	 	1.9	 	 	 	2.2	 	 	 	2.7	 	 	 	3.7	 	 	 	1.9	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Adjusted end of period invested assets and cash	  	$	71.0	 	  	$	70.5	 	 	$	71.0	 	 	$	70.3	 	 	$	70.2	 	 	$	70.2	 	 	$	70.7	 	 	$	70.3	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(A)	  	Average Invested Assets and Cash Used in Reported Yield Calculation	  	$	70.8	 	  	$	70.4	 	 	$	70.6	 	 	$	70.2	 	 	$	70.2	 	 	$	70.4	 	 	$	70.7	 	 	$	70.4	 	
	  	Subtract:	  			 	  				 				 				 				 				 				 				
	  	Restricted commercial mortgage loans related to a securitization entity (1)	  	 	—  	 	  	 	0.1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	0.1	 	 	 	—  	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(B)	  	Average Invested Assets and Cash Used in Core Yield Calculation	  	$	70.8	 	  	$	70.3	 	 	$	70.6	 	 	$	70.2	 	 	$	70.2	 	 	$	70.4	 	 	$	70.6	 	 	$	70.4	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	(Income—amounts in millions)	  			 	  				 				 				 				 				 				 				
		 								
(C)	  	Reported—Net Investment Income	  	$	852	 	  	$	829	 	 	$	1,681	 	 	$	815	 	 	$	815	 	 	$	828	 	 	$	804	 	 	$	3,262	 	
	  	Subtract:	  			 	  				 				 				 				 				 				 				
	  	Bond calls and commercial mortgage loan prepayments	  	 	7	 	  	 	6	 	 	 	13	 	 	 	8	 	 	 	8	 	 	 	9	 	 	 	11	 	 	 	36	 	
	  	Other non-core items (2)	  	 	7	 	  	 	2	 	 	 	9	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	(2	) 	 	 	3	 	
	  	Restricted commercial mortgage loans related to a securitization entity (1)	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	1	 	 	 	1	 	 	 	—  	 	 	 	1	 	 	 	3	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(D)	  	Core Net Investment Income	  	$	838	 	  	$	821	 	 	$	1,659	 	 	$	804	 	 	$	805	 	 	$	817	 	 	$	794	 	 	$	3,220	 	

(C) / (A)	  	Reported Yield	  	 	4.82	% 	  	 	4.71	% 	 	 	4.76	% 	 	 	4.64	% 	 	 	4.64	% 	 	 	4.70	% 	 	 	4.55	% 	 	 	4.63	% 	
(D) / (B)	  	Core Yield	  	 	4.74	% 	  	 	4.67	% 	 	 	4.70	% 	 	 	4.58	% 	 	 	4.59	% 	 	 	4.64	% 	 	 	4.50	% 	 	 	4.58	% 	
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)  	Represents the incremental assets and investment income related to restricted commercial mortgage loans.	
(2)  	Includes cost basis adjustments on structured securities and various other immaterial items.	
 
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Corporate Information

 
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 GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2019
Financial Strength Ratings As Of July 29, 2019

	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 Company Canada (1)	  	A+ (Strong)	  	N/A	  	N/A		
Genworth Financial Mortgage Insurance Pty Limited (Australia) (2)	  	A (Strong)	  	N/A	  	N/A		
Genworth Life Insurance Company	  	B- (Weak)	  	B3 (Poor)	  	B- (Fair)		
Genworth Life and Annuity Insurance Company	  	B- (Weak)	  	B1 (Poor)	  	B+ (Good)		
Genworth Life Insurance Company of New York	  	B- (Weak)	  	B3 (Poor)	  	B- (Fair)		
The S&P, Moody’s, A.M. Best, Dominion Bond Rating Service (DBRS) and Fitch Rating Service (Fitch) ratings included 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), “BB” (Marginal) or “B” (Weak) have strong, marginal or weak financial security characteristics, respectively. The “A,” “BB” and “B” ranges are the third-, fifth- and sixth-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+,” “A,” “BB+” and “B-” ratings are the fifth-, sixth-, eleventh- and sixteenth-highest of S&P’s 21 ratings categories.
Moody’s states that insurance companies rated “Baa” (Adequate) offer adequate financial security and those rated “B” (Poor) offer questionable financial security. The “Baa” (Adequate) and “B” (Poor) ranges are the fourth- and sixth-highest, respectively, 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,” “B1” and “B3” ratings are the tenth-, fourteenth- and sixteenth-highest, respectively, of Moody’s 21 ratings categories.
A.M. Best states that its “B+” (Good) rating is assigned to companies that have, in its opinion, a good ability to meet their ongoing insurance obligations while “B-” (Fair) is assigned to those companies that have, in its opinion, a fair ability to meet their ongoing insurance obligations. The “B+” (Good) and “B-” (Fair) ratings are the sixth- and eighth-highest of 15 ratings assigned by A.M. Best, which range from “A++” to “F.”
DBRS states that long-term obligations rated “AA” are of superior credit quality. Given the restrictive definition DBRS has for the “AAA” category, entities rated “AA” are also considered to be strong credits, typically exemplifying above-average strength in key areas of consideration and unlikely to be significantly affected by reasonably foreseeable events.
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 fifth-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, DBRS, 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.

(1)  	Genworth Financial Mortgage Insurance Company Canada is also rated “AA” by DBRS.	
(2)  	Genworth Financial Mortgage Insurance Pty Limited (Australia) is also rated “A+” by Fitch.	
 
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