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
November 4, 2020
Date of Report
(Date of earliest event reported)

 

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

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

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

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

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

 

Item 2.02	Results of Operations and Financial Condition.	
On November 4, 2020, Genworth Financial, Inc. (the “Company”) issued (1) a press release announcing its financial results for the quarter ended September 30, 2020, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (2) a financial supplement for the quarter ended September 30, 2020, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information contained in this Current Report on Form 8-K (including the exhibits) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the company under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
 
Item 9.01	Financial Statements and Exhibits.	
The following materials are furnished as exhibits to this Current Report on Form 8-K:

Exhibit
Number	  	Description of Exhibit	
		
99.1	  	Press Release dated November 4, 2020	
		
99.2	  	Financial Supplement for the quarter ended September 30, 2020	
		
104	  	Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document)	

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

	 		 	GENWORTH FINANCIAL, INC.	
				
Date: November 4, 2020	 		 	By:	 	/s/ Matthew D. Farney	
	 		 		 	Matthew D. Farney	
	 		 		 	Vice President and Controller	
	 		 		 	(Principal Accounting Officer)	

Exhibit 99.1

Genworth Financial Announces Third Quarter 2020 Results
Third Quarter Net Income Of $418 Million And Adjusted Operating Income Of $132 Million
 
 	•	 	Merger Agreement With China Oceanwide Holdings Group Co., Ltd (Oceanwide) Extended To November 30, 2020; Oceanwide Has Made Significant Progress On Transaction Funding	
 
 	•	 	U.S. Mortgage Insurance (MI) Segment Adjusted Operating Income Of $141 Million Primarily Driven By Lower Levels Of New Delinquencies And Incurred But Not Reported (IBNR) Favorability	
 
 	•	 	$26.6 Billion In New Insurance Written (NIW) Reflecting Robust Mortgage Origination Market	
 
 	•	 	U.S. Life Insurance Segment Adjusted Operating Income Of $14 Million	
 
 	•	 	LTC1 Adjusted Operating Income Of $59 Million Due To Higher Claim Terminations And Lower Claim Incidence	
 
 	•	 	Life Insurance Adjusted Operating Loss Of $69 Million Due To Unfavorable Performance In Term Life And Term Universal Life Insurance Blocks	
 
 	•	 	Fixed Annuities Adjusted Operating Income Of $24 Million	
 
 	•	 	Holding Company Cash And Liquid Assets Of $814 Million, Including $74 Million Restricted	
 
 	•	 	$436 Million Dividend From U.S. MI To The Holding Company From Proceeds Of The Genworth Mortgage Holdings, Inc. (GMHI)2 Debt Offering Of $750 Million	
Richmond, VA (November 4, 2020) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended September 30, 2020. The company reported net income3 of $418 million, or $0.82 per diluted share, in the third quarter of 2020, compared with net income of $18 million, or $0.04 per diluted share, in the third quarter of 2019. The company reported adjusted operating income4 of $132 million, or $0.26 per diluted share, in the third quarter of 2020, compared with adjusted operating income of $123 million, or $0.24 per diluted share, in the third quarter of 2019.
“Genworth delivered strong operating performance in the third quarter, driven by outstanding top line and bottom line results in our U.S. mortgage insurance business,” said Tom McInerney, President and CEO of

1 	Long term care insurance.	
2 	Genworth’s indirect wholly-owned mortgage insurance subsidiary.	
3 	Unless otherwise stated, all references in this press release to net income (loss), net income (loss) per share, adjusted operating income (loss), adjusted operating income (loss) per share and book value per share should be read as net income (loss) available to Genworth’s common stockholders, net income (loss) available to Genworth’s common stockholders per diluted share, adjusted operating income (loss) available to Genworth’s common stockholders, adjusted operating income (loss) available to Genworth’s common stockholders per diluted share and book value available to Genworth’s common stockholders per share, respectively.	
4 	This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (Non-GAAP). See the Use of Non-GAAP Measures section of this press release for additional information.	
 
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Genworth. “While the economic environment remains unpredictable because of the COVID-19 pandemic, we are confident that we are taking the right steps to enhance liquidity, position our businesses to navigate continued uncertainty and maximize shareholder value. In addition to pursuing the closing of the Oceanwide transaction, we are also making progress against our strategic priorities which include addressing our near-term debt obligations, strengthening our balance sheet and executing our LTC multi-year rate action plan, which remains critical to stabilizing our U.S. life insurance businesses.”
The COVID-19 pandemic continues to evolve and impact Genworth’s businesses in a number of ways. In the current quarter, the company saw sequential improvement in unemployment trends, lower levels of new delinquencies relative to the second quarter and a robust mortgage origination market, which benefited the U.S. MI business. Mortality remained elevated relative to last year, which had a mixed impact on the LTC and life insurance businesses. While uncertainty remains high, the company is continuing to operate effectively, and its mortgage insurance businesses are maintaining strong capital positions to ensure the businesses are resilient across a wide range of scenarios.
Strategic Update
On October 1, Genworth and Oceanwide announced they agreed to extend the merger agreement deadline to not later than November 30, 2020 to provide Oceanwide with additional time to finalize the funding plan for the transaction, which was delayed due to challenges presented by the global pandemic.
On November 2, the company announced that Oceanwide has made significant progress on the Hony Capital funding and has provided satisfactory documentation to Genworth indicating that Hony Capital expects to be able to finalize the $1.8 billion financing in November, and that Oceanwide is continuing to work diligently with the goal of closing the transaction by November 30, 2020, subject to timely receipt of outstanding regulatory re-approvals, confirmations and/or clearances. Oceanwide is also gathering funds in Mainland China to provide the remaining amount required to pay for the total Genworth purchase price of $5.43 per share. In addition, Oceanwide has requested confirmation of the extension of the acceptance of filing from the Chinese National Development and Reform Commission (NDRC) with respect to the transaction.
The parties are hopeful that Oceanwide’s transaction funding will be completed in time to close the transaction by November 30, without the need for an additional extension.
“I am very pleased with Oceanwide’s excellent progress since our last update,” said Tom McInerney, President and CEO of Genworth. “They have made significant strides to finalize the financing with Hony Capital, and to update the filings required to close the transaction. Based on this progress, we are hopeful we will be able to close the transaction by November 30 and deliver the best value to our shareholders.”
 
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LU Zhiqiang, chairman of Oceanwide, continued, “The Oceanwide team and I are working to finalize the remaining steps of the transaction process as quickly as possible. The acquisition of Genworth remains a strategically important priority for Oceanwide, and we remain committed to finalizing the funding plan for the transaction with the goal of closing the transaction by November 30.”
The transaction has now received all U.S. regulatory approvals needed to close the transaction, subject to confirmation from the Delaware Department of Insurance that the acquisition of Genworth’s Delaware-domiciled insurer may proceed under the existing approval. With respect to recent regulatory matters: the Financial Industry Regulatory Authority (FINRA) has confirmed that the transaction may close under FINRA Rule 1017(c) prior to receiving its final approval; the government-sponsored enterprises (GSEs) recently re-approved the transaction, subject to certain conditions; and the North Carolina Department of Insurance extended its previously-granted approval through January 24, 2021. Oceanwide needs to receive clearance for currency conversion and transfer of funds from the State Administration of Foreign Exchange, and the NDRC needs to confirm the extension of the acceptance of filing with respect to the transaction, as its prior acceptance of filing has expired. All other required approvals and clearances have been secured.
Financial Performance

 	  	Three months ended September 30	 	  	 	 		
 	  	2020	 	  	2019	 	  	 	 		
	Consolidated Net Income & Adjusted Operating Income
(Amounts in millions, except per share)	  	Total	 	  	Per
diluted
share	 	  	Total	 	  	Per
diluted
share	 	  	Total
% change	 	
							
Net income available to Genworth’s common stockholders	  	$	418	 	  	$	0.82	 	  	$	18	 	  	$	0.04	 	  	  	NM	5 		
Adjusted operating income	  	$	132	 	  	$	0.26	 	  	$	123	 	  	$	0.24	 	  	 	7	% 		
Weighted-average diluted shares	  	 	511.5	 	  				  	 	511.2	 	  				  					
				
 	  	As of September 30	 	  	 	 		
 	  	2020	 	  	2019	 	  	 	 		
Book value per share	  				  	$	29.19	 	  				  	$	28.57	 	  					
Book value per share, excluding accumulated other comprehensive income (loss)	  				  	$	20.99	 	  				  	$	21.38	 	  					
Net investment gains, net of taxes and other adjustments, increased net income by $285 million in the quarter. The investment gains were driven by sales of U.S. Treasury bonds supporting the company’s LTC business as part of ongoing portfolio optimization and mark-to-market gains on limited partnerships. Net income in the third quarter of 2019 included $5 million from investment gains, net of taxes and other adjustments.

5 	The company defines “NM” as not meaningful for increases or decreases greater than 200 percent.	
 
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Net investment income was $827 million in the quarter, compared to $786 million in the prior quarter and $816 million in the prior year. Net investment income was higher than the prior quarter and prior year as a result of higher income from bond calls and prepayments, limited partnerships and a more favorable inflation impact on U.S. Government Treasury Inflation Protected Securities. The reported yield and the core yield4 for the quarter were 4.82 percent and 4.65 percent, respectively, compared to 4.65 percent and 4.59 percent, respectively, in the prior quarter.
Genworth’s effective tax rate on income from continuing operations for the quarter was approximately 25.6 percent. The effective tax rate was above 21 percent due to the tax effect of forward starting swap gains settled prior to the change in the corporate tax rate under the 2017 Tax Cuts and Jobs Act, which continue to be tax effected at 35 percent as they are amortized into net investment income, as well as by the higher tax expense related to foreign operations.
Adjusted operating income (loss) results by business line are summarized in the table below:

	Adjusted Operating Income (Loss)
 (Amounts in millions)	  	Q3 20	 	  	Q2 20	 	  	Q3 19	 	
U.S. Mortgage Insurance	  	$	141	 	  	$	(3	) 	  	$	137	 		
Australia Mortgage Insurance	  	 	7	 	  	 	1	 	  	 	12	 		
U.S. Life Insurance	  	 	14	 	  	 	(5	) 	  	 	(1	) 		
Runoff	  	 	19	 	  	 	24	 	  	 	10	 		
Corporate and Other	  	 	(49	) 	  	 	(38	) 	  	 	(35	) 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Total Adjusted Operating Income (Loss)	  	$	132	 	  	$	(21	) 	  	$	123	 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Adjusted operating income (loss) represents income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and other adjustments, net of taxes. A reconciliation of net income (loss) to adjusted operating income (loss) is included at the end of this press release.
Unless specifically noted in the discussion of results for the Australia MI business, references to percentage changes exclude the impact of translating foreign denominated activity into U.S. dollars (foreign exchange). Percentage changes that include the impact of foreign exchange are found in a table at the end of this press release.
 
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U.S. Mortgage Insurance

	Operating Metrics
 (Dollar amounts in millions)	  	Q3 20	 	 	Q2 20	 	 	Q3 19	 	
Adjusted operating income (loss)	  	$	141	 	 	$	(3	) 	 	$	137	 		
New insurance written	  				 				 					
Primary6	  	$	26,600	 	 	$	28,400	 	 	$	18,900	 		
Loss ratio	  	 	18	% 	 	 	94	% 	 	 	11	% 		
U.S. MI reported adjusted operating income of $141 million, compared with an adjusted operating loss of $3 million in the prior quarter and adjusted operating income of $137 million in the prior year. U.S. MI’s primary insurance in force increased 15 percent versus the prior year from strong NIW, partially offset by lower persistency. Primary NIW decreased six percent from the prior quarter due to lower estimated market share, which was partially offset by higher purchase originations and was up 41 percent versus the prior year primarily from higher mortgage refinancing originations and a larger private mortgage insurance market. Earned premiums in the quarter increased versus the prior quarter driven by insurance in force growth and higher average premium rates, partially offset by lower single premium policy cancellations. Current quarter earned premiums increased versus the prior year mainly from higher insurance in force and from increased single premium policy cancellations driven by lower persistency and elevated mortgage refinancing, partially offset by lower average premium rates and higher ceded premiums associated with reinsurance transactions.
U.S. MI’s current quarter results reflected losses of $45 million and a loss ratio of 18 percent, which were mainly driven by $61 million of losses from new delinquencies, partially offset by favorable IBNR development. This compares to losses of $228 million and a loss ratio of 94 percent in the prior quarter and losses of $23 million and a loss ratio of 11 percent in the prior year. The significant sequential decline in losses was driven by a 66 percent decrease in new primary delinquencies from 48,373 to 16,664, driven by materially lower servicer reported forbearances since the May 2020 peak. Approximately 75 percent of new primary delinquencies were reported in forbearance plans which may cure at an elevated rate. In addition, U.S. MI released $23 million of the $28 million increase of IBNR reserves established in the prior quarter as new delinquency trends improved. There was no material reserve factor update in the current quarter. Current quarter losses increased versus the prior year primarily driven by COVID-19 related new delinquencies in the current quarter.

6 	In the third quarter of 2020, the company revised the product descriptions in its U.S. Mortgage Insurance segment to conform with industry convention and certain regulatory definitions, including classifications under the PMIERs. Prior year amounts have been reclassified to conform to the current year presentation where applicable.	
 
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Australia Mortgage Insurance

	Operating Metrics
 (Dollar amounts in millions)	  	Q3 20	 	 	Q2 20	 	 	Q3 19	 	
Adjusted operating income	  	$	7	 	 	$	1	 	 	$	12	 		
New insurance written	  				 				 					
Flow	  	$	5,500	 	 	$	4,400	 	 	$	4,600	 		
Bulk	  	$	100	 	 	$	100	 	 	$	—  	 		
Loss ratio	  	 	37	% 	 	 	63	% 	 	 	36	% 		
Australia MI reported adjusted operating income of $7 million, compared with $1 million in the prior quarter and $12 million in the prior year. Favorable sequential performance was driven by lower losses from fewer new delinquencies, higher reported cures and favorable aging of existing delinquencies, while performance versus the prior year continued to be impacted by lower earned premiums and lower net investment income. Australia MI flow NIW increased 14 percent sequentially and increased 17 percent versus the prior year from continued strong lender customer mortgage origination volume supported by ongoing low interest rates. As of the end of the current quarter, approximately 31,000 of Australia MI’s insured loans in force continued to be enrolled in a payment deferral or payment holiday program, down from over 48,000 at the end of the prior quarter. Under regulatory guidance, these loans, unless previously delinquent, are reported as current. To address the COVID-19 related timing impacts on delinquencies and account for the pressured economic conditions caused by the pandemic, the business strengthened its loss reserves, including IBNR reserves, by $24 million in the current quarter. The loss ratio in the quarter was 37 percent, down 26 points sequentially and up one point versus prior year.
U.S. Life Insurance

	Adjusted Operating Income (Loss)
 (Amounts in millions)	  	Q3 20	 	  	Q2 20	 	  	Q3 19	 	
Long Term Care Insurance	  	$	59	 	  	$	48	 	  	$	21	 		
Life Insurance	  	 	(69	) 	  	 	(81	) 	  	 	(25	) 		
Fixed Annuities	  	 	24	 	  	 	28	 	  	 	3	 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Total U.S. Life Insurance	  	$	14	 	  	$	(5	) 	  	$	(1	) 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Long Term Care Insurance
Long term care insurance reported adjusted operating income of $59 million, compared with $48 million in the prior quarter and $21 million in the prior year. Claim terminations in the current quarter were higher compared to the prior year and flat compared to the prior quarter. Although it is not the company’s current practice to track cause of death for LTC policyholders and claimants, current quarter and prior quarter LTC results were impacted by higher claim terminations, likely the result of the COVID-19 pandemic. LTC results also reflected higher net investment income from limited partnerships and U.S. Government Treasury Inflation Protected Securities compared to the prior quarter and prior year. IBNR claim reserves were strengthened by an additional $24 million in the current quarter because the company assumes that the lower LTC new claims incidence is temporary in nature, due to the COVID-19 pandemic, and claim incidence will likely be higher in
 
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future quarters. The IBNR reserve strengthening partially offset the continued favorable development on IBNR claims in the current quarter. Earnings continue to benefit from in force rate actions but were slightly lower than the prior quarter and the prior year, reflecting less favorable impacts from benefit reductions, partially offset by higher premiums.
The company has typically conducted a review of its LTC claims reserve assumptions in the third or fourth quarter of each year and will be completing its review in the fourth quarter. While the work is ongoing, current trends do not indicate a need to strengthen the LTC claims reserve as assumptions appear to be holding up in the aggregate. The company will also complete loss recognition and cash flow testing for all of its U.S. life insurance products in the fourth quarter.
Life Insurance
Life insurance reported an adjusted operating loss of $69 million, compared with $81 million in the prior quarter and $25 million in the prior year. Results reflected higher amortization of deferred acquisition costs (DAC) compared to the prior quarter and prior year, primarily associated with higher lapses from the large 20-year level-premium term life insurance block entering its post-level premium period. Results also reflected reserve increases during the premium grace period in the 10-year term universal life insurance block associated with policies entering the post-level premium period that were higher than the prior year but lower than the prior quarter. Life mortality was higher compared to the prior quarter and prior year, attributable in part to the COVID-19 pandemic. Prior year results included an unfavorable after-tax adjustment of $10 million for higher ceded reinsurance rates.
Fixed Annuities
Fixed annuities reported adjusted operating income of $24 million, compared with $28 million in the prior quarter and $3 million in the prior year. Results versus the prior quarter and prior year reflected lower net spreads and higher mortality in the single premium immediate annuity product. Results in the prior year included unfavorable after-tax charges of $13 million from loss recognition testing on the single premium immediate annuity block from low interest rates.
Runoff
Runoff reported adjusted operating income of $19 million, compared with $24 million in the prior quarter and $10 million in the prior year. Results in the current quarter reflected impacts in the company’s variable annuity products from equity market performance which was less favorable than the prior quarter but more favorable than the prior year.
 
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Corporate And Other
Corporate and Other reported an adjusted operating loss of $49 million, compared with $38 million in the prior quarter and $35 million in the prior year. Current quarter results reflected higher unfavorable tax timing adjustments compared to the prior quarter, while prior year results included favorable tax timing adjustments. Additionally, results in the current quarter reflected lower interest expense compared to the prior year from the early redemption of Genworth Holdings, Inc.’s June 2020 senior notes in January 2020.
Capital & Liquidity
Genworth maintains the following capital positions in its operating subsidiaries:

	Key Capital & Liquidity Metrics
 (Dollar amounts in millions)	  	Q3 20	 	 	Q2 20	 	 	Q3 19	 	
U.S. MI	  				 				 					
Consolidated Risk-To-Capital Ratio7	  	 	12.1:1	 	 	 	12.0:1	 	 	 	11.9:1	 		
Genworth Mortgage Insurance Corporation Risk-To-Capital Ratio7	  	 	12.3:1	 	 	 	12.2:1	 	 	 	12.1:1	 		
Private Mortgage Insurer Eligibility Requirements (PMIERs) Sufficiency Ratio7,8	  	 	132	% 	 	 	143	% 	 	 	129	% 		
Australia MI	  				 				 					
Prescribed Capital Amount (PCA) Ratio7	  	 	179	% 	 	 	177	% 	 	 	198	% 		
U.S. Life Insurance Companies	  				 				 					
Consolidated Risk-Based Capital (RBC) Ratio7	  	 	240	% 	 	 	222	% 	 	 	199	% 		
Holding Company Cash and Liquid Assets9,10	  	$	814	 	 	$	554	 	 	$	366	 		
Key Points
 
 	•	 	U.S. MI’s PMIERs11 sufficiency ratio is estimated to be 132 percent, $1,074 million above published PMIERs requirements, which does not take into consideration the impact of restrictions recently imposed by the GSEs12. The PMIERs sufficiency ratio was down 11 points, or approximately $200 million, sequentially, driven in part by elevated NIW, partially offset by elevated lapse from prevailing low interest rates in the current quarter. Additionally, elevated lapses drove an acceleration of the amortization on existing reinsurance transactions, which caused a reduction in PMIERs capital credit in the current quarter;	

7 	Company estimate for the third quarter of 2020 due to timing of the preparation and filing of statutory statements.	
8 	The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within the published 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 September 30, 2020, June 30, 2020, and September 30, 2019, the PMIERs sufficiency ratios were $1,074 million, $1,275 million and $861 million, respectively, of available assets above the published PMIERs requirements.	
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 $814 million, $504 million and $297 million of cash, cash equivalents and restricted cash as of September 30, 2020, June 30, 2020 and September 30, 2019, respectively, which included $74 million, $10 million and $7 million of restricted cash and cash equivalents, respectively. Genworth Holdings, Inc. also held $50 million and $69 million in U.S. government securities as of June 30, 2020 and September 30, 2019, respectively, which included $49 million and $59 million, respectively, of restricted assets.	
11 	Private Mortgage Insurer Eligibility Requirements.	
12 	The GSEs have imposed certain capital restrictions on the U.S. MI business which remain in effect until certain conditions are met. These restrictions currently require Genworth Mortgage Insurance Corporation, the company’s principal U.S. mortgage insurance subsidiary, to maintain 115 percent of PMIERs minimum required assets among other restrictions.	
 
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 	•	 	Both the current quarter and prior quarter PMIERs sufficiency benefited from a 0.30 multiplier applied to the risk based required asset factor for certain non-performing loans, which resulted in a reduction of the published PMIERs required assets by an estimated $1,217 million at the end of the quarter, compared to $1,057 million at the end of the second quarter;	
 
 	•	 	On October 22, 2020, U.S. MI completed an insurance linked note transaction, which will add $350 million of additional PMIERs capital credit in the fourth quarter of 2020. Had the recently completed transaction occurred in the third quarter of 2020, U.S. MI’s current quarter PMIERs sufficiency would have been $1,424 million or 147 percent above the published PMIERs requirements;	
 
 	•	 	Australia MI’s PCA ratio is estimated to be 179 percent, above the company’s target operating range of 132 to 144 percent. The PCA ratio was up two points sequentially;	
 
 	•	 	Subsequent to the third quarter of 2020, Australia MI redeemed the remainder of its AUD$48 million of Tier 2 debt due July 2025 and has AUD$190 million in Tier 2 subordinated notes remaining due July 2030;	
 
 	•	 	U.S. life insurance companies’ consolidated statutory risk-based capital is estimated to be 240 percent, which is up from the prior quarter primarily from strong statutory income in the quarter driven by LTC results and favorable equity market impacts on variable annuities; and	
 
 	•	 	The holding company ended the quarter with $814 million of cash and liquid assets, including $74 million that is restricted, which is above the company’s target. During the third quarter, the holding company received a $436 million dividend from U.S. MI from the GMHI debt offering of $750 million. Additionally, the holding company repurchased $18 million of its 2021 bonds.	
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the “Investors” section of genworth.com. From time to time, Genworth’s publicly traded subsidiary, Genworth Mortgage Insurance Australia Limited, separately releases financial and other information about its operations. This information can be found at http://www.genworth.com.au.
 
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Conference Call And Financial Supplement Information
This press release and the third quarter 2020 financial supplement are now posted on the company’s website. Additional information regarding business results will be posted on the company’s website, http://investor.genworth.com, by 7:00 a.m. on November 5, 2020. Investors are encouraged to review these materials.
Genworth will conduct a conference call on November 5, 2020 at 8:00 a.m. (ET) to discuss business results and provide an update on strategic objectives, including the pending transaction with Oceanwide. Genworth’s conference call will be accessible via telephone and the Internet. The dial-in number for Genworth’s November 5th conference call is 888 208.1820 or 323 794.2110 (outside the U.S.); conference ID # 6024871. To participate in the call by webcast, register at http://investor.genworth.com at least 15 minutes prior to the webcast to download and install any necessary software.
A replay of the call will be available at 888 203.1112 or 719 457.0820 (outside the U.S.); conference ID # 6024871 through November 20, 2020. The webcast will also be archived on the company’s website for one year.
 
10

Use of Non-GAAP Measures
This press release includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.
While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth Financial, Inc.’s common stockholders or net income (loss) available to Genworth Financial, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.
Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21 percent tax rate for the company’s domestic segments and a 30 percent tax rate for its Australia Mortgage Insurance segment and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves.
In the second quarter of 2020, the company recorded a goodwill impairment of $3 million, net of the portion attributable to noncontrolling interests, in its Australia mortgage insurance business.
During the second quarter of 2020, the company repurchased $52 million principal amount of Genworth Holdings, Inc.’s senior notes with 2021 maturity dates for a pre-tax gain of $3 million. This transaction was excluded from adjusted operating income (loss) as it related to gains on the early extinguishment of debt.
 
11

The company recorded a pre-tax expense of $1 million in the second quarter of 2020 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.
The tables at the end of this press release provide a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the three months ended September 30, 2020 and 2019, as well as for the three months ended June 30, 2020, and reflect adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.
This press release includes the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP. In addition, the company’s definition of core yield may differ from the definitions used by other companies. A reconciliation of reported U.S. GAAP yield to core yield is included in a table at the end of this press release.
 
12

Definition of Selected Operating Performance Measures
The company taxes its international businesses at their local jurisdictional tax rates and its domestic businesses at the U.S. corporate federal income tax rate of 21 percent. The company’s segment tax methodology applies the respective jurisdictional or domestic tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign withholding taxes and permanent differences between U.S. GAAP and local tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.
The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.
The company reports selected operating performance measures including “sales” and “insurance in force” or “risk in force” which are commonly used in the insurance industry as measures of operating performance.
Management regularly monitors and reports sales metrics as a measure of volume of new business generated in a period. Sales refer to new insurance written for mortgage insurance products. The company considers new insurance written to be a measure of the company’s operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of the company’s revenues or profitability during that period.
Management regularly monitors and reports insurance in force and risk in force. Insurance in force for the company’s mortgage insurance businesses is a measure of the aggregate original loan balance for outstanding insurance policies as of the respective reporting date. Risk in force for the company’s U.S. mortgage insurance business is based on the coverage percentage applied to the estimated current outstanding loan balance. Risk in force in the Australia mortgage insurance business is computed using an “effective” risk in force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in force has been calculated by applying to insurance in force a factor of 35 percent that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s mortgage insurance business in Australia. The company also has certain risk share arrangements in Australia where it provides pro-rata coverage of certain loans rather than 100 percent coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. The company considers insurance in force and risk in force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.
Management also regularly monitors and reports a loss ratio for the company’s businesses. For the mortgage insurance businesses, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.
These operating performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company’s
 
13

future business and financial performance. Examples of forward-looking statements include statements the company makes relating to the closing of the transaction with China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, Oceanwide), Oceanwide’s funding plans and transactions the company might pursue to address its near-term liabilities and financial obligations, which may include raising capital through its mortgage insurance subsidiaries and/or transactions to sell a percentage of its ownership interests in its mortgage insurance businesses, as well as statements the company makes regarding the potential impacts of the COVID-19 pandemic. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, business, competitive, market, regulatory and other factors and risks, including, but not limited to, the following:
 
 	•	 	risks related to the proposed transaction with Oceanwide including: the risk that Oceanwide will be unable to raise funding and the company’s inability to complete the Oceanwide transaction on the agreed terms, in a timely manner or at all, which may adversely affect the company’s business and the price of its common stock; the risk that the company will be unable to address its near-term liabilities and financial obligations, including the risks that it will be unable to raise additional capital and/or sell a percentage of its ownership interest in its U.S. mortgage insurance business to repay the promissory note to AXA S.A. (AXA) and repay and/or refinance its debt maturing in 2021 or beyond; the parties’ inability to obtain regulatory approvals, clearances or extensions, or the possibility that such regulatory approvals or clearances may further delay the Oceanwide transaction or may not be received prior to November 30, 2020 (and either or both of the parties may not be willing to further waive their end date termination rights beyond November 30, 2020) or that materially burdensome or adverse regulatory conditions may be imposed or undesirable measures may be required in connection with any such regulatory approvals, clearances or extensions (including those conditions or measures that either or both of the parties may be unwilling to accept or undertake, as applicable) or that with continuing delays, circumstances may arise that make one or more previously obtained regulatory approvals or clearances no longer valid, one or both parties unwilling to proceed with the Oceanwide transaction or unable to comply with the conditions to existing regulatory approvals, or one or both of the parties may be unwilling to accept any new condition under a regulatory approval; the risk that the parties will not be able to obtain other regulatory approvals, clearances or extensions, including in connection with a potential alternative funding structure or the current geo-political environment, or that one or more regulators may rescind or fail to extend existing approvals, or that the revocation by one regulator of approvals will lead to the revocation of approvals by other regulators; the parties’ inability to obtain any necessary regulatory approvals, clearances or extensions for the post-closing capital plan; the risk that a condition to the closing of the Oceanwide transaction may not be satisfied or that a condition to closing that is currently satisfied may not remain satisfied due to the delay in closing the Oceanwide transaction or that the parties will be unable to agree upon a closing date following receipt of all regulatory approvals and clearances; the risk regarding the ongoing availability of any required financing; the risk that existing and potential legal proceedings may be instituted against the company in connection with the Oceanwide transaction that may delay the transaction, make it more costly or ultimately preclude it; the risk that the proposed Oceanwide transaction disrupts the company’s current plans and operations as a result of the announcement and consummation of the transaction; potential adverse reactions or changes to the company’s business relationships with clients, employees, suppliers or other parties or other business uncertainties resulting from the announcement of the Oceanwide transaction or during the pendency of the transaction, including but not limited to such changes that could affect the company’s financial performance; certain restrictions during the pendency of the Oceanwide transaction that may impact the company’s ability to pursue certain business opportunities or strategic transactions; continued availability of capital and financing to the company before, or in the absence of, the consummation of the Oceanwide transaction; further rating agency actions and downgrades in the company’s credit or financial strength ratings; changes in applicable laws or regulations; the company’s ability to recognize the anticipated benefits of the Oceanwide transaction; the amount of the costs, fees, expenses and other charges related to the Oceanwide transaction; the risks related to diverting management’s attention from the company’s ongoing business operations; and the company’s ability to attract, recruit, retain and motivate current and prospective employees may be adversely affected;	
 
14

 	•	 	strategic risks in the event the proposed transaction with Oceanwide is not consummated including: the company’s inability to successfully execute alternative strategic plans to effectively address its current business challenges (including with respect to stabilizing its U.S. life insurance businesses, debt and other obligations, cost savings, ratings and capital); the risk that the impacts of or uncertainty created by the COVID-19 pandemic delay or hinder alternative transactions or otherwise make alternative plans less attractive; the company’s inability to attract buyers for any businesses or other assets it may seek to sell, or securities it may seek to issue, in each case, in a timely manner and on anticipated terms; failure to obtain any required regulatory, stockholder and/or noteholder approvals or consents for such alternative strategic plans, or the company’s challenges changing or being more costly or difficult to successfully address than currently anticipated or the benefits achieved being less than anticipated; inability to achieve anticipated cost-savings in a timely manner; adverse tax or accounting charges; and the company’s ability to raise the capital needed in its mortgage insurance businesses in a timely manner and on anticipated terms, including through business performance, reinsurance or similar transactions, asset sales, securities offerings or otherwise, in each case as and when required;	
 
 	•	 	risks relating to estimates, assumptions and valuations including: inadequate reserves and the need to increase reserves (including as a result of any changes the company may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews, including reviews it expects to complete and carry out in the fourth quarter of 2020); risks related to the impact of the company’s annual review of assumptions and methodologies related to its long term care insurance claim reserves and margin reviews in the fourth quarter of 2020, including risks that additional information obtained in finalizing its claim reserves and margin reviews in the fourth quarter of 2020 or other changes to assumptions or methodologies materially affect margins; the inability to accurately estimate the impacts of the COVID-19 pandemic; inaccurate models; deviations from the company’s estimates and actuarial assumptions or other reasons in its long term care insurance, life insurance and/or annuity businesses; accelerated amortization of deferred acquisition costs (DAC) and present value of future profits (PVFP) (including as a result of any changes it may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews, including reviews it expects to complete and carry out in the fourth quarter of 2020); adverse impact on the company’s financial results as a result of projected profits followed by projected losses (as is currently the case with its long term care insurance business); adverse impact on the company’s results of operations, including the outcome of its reviews of the premium earnings pattern for its mortgage insurance businesses; and changes in valuation of fixed maturity and equity securities;	
 
 	•	 	risks relating to economic, market and political conditions including: downturns and volatility in global economies and equity and credit markets, including as a result of prolonged unemployment, a sustained low interest rate environment and other displacements caused by the COVID-19 pandemic; interest rates and changes in rates have adversely impacted, and may continue to materially adversely impact, the company’s business and profitability; deterioration in economic conditions or a decline in home prices that adversely affect the company’s loss experience in mortgage insurance; political and economic instability or changes in government policies; and fluctuations in foreign currency exchange rates and international securities markets;	
 
 	•	 	regulatory and legal risks including: extensive regulation of the company’s businesses and changes in applicable laws and regulations (including changes to tax laws and regulations); litigation and regulatory investigations or other actions; dependence on dividends and other distributions from the company’s subsidiaries (particularly its mortgage insurance subsidiaries) and the inability of any subsidiaries to pay dividends or make other distributions to the company, including as a result of the performance of its subsidiaries, heightened regulatory restrictions resulting from the COVID-19 pandemic, and other insurance, regulatory or corporate law restrictions; the inability to successfully seek in force rate action increases (including increased premiums and associated benefit reductions) in the company’s long term care insurance business, including as a result of the COVID-19 pandemic; adverse change in regulatory requirements, including risk-based capital; changes in regulations adversely affecting the company’s Australian mortgage insurance business; inability to continue to maintain the private mortgage insurer eligibility requirements (PMIERs), including as a result of the interim conditions and applicable requirements imposed by the GSEs on the company’s U.S. mortgage insurance subsidiary and/or after the benefit of the 0.30 multiplier applied to non-performing loans	
 
15

 	expires under the PMIERs temporary amendments; risks on the company’s U.S. mortgage insurance subsidiary’s ability to pay its holding company dividends as a result of the GSEs’ amendments to PMIERs in response to COVID-19; the impact on capital levels of increased delinquencies caused by the COVID-19 pandemic; inability of the company’s U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements; the influence of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and a small number of large mortgage lenders on the U.S. mortgage insurance market and adverse changes to the role or structure of Fannie Mae and Freddie Mac; adverse changes in regulations affecting the company’s mortgage insurance businesses; additional restrictions placed on the company’s U.S. mortgage insurance business by government and government-owned and government-sponsored enterprises (GSEs) in connection with a new debt financing and/or sale of a percentage of its ownership interests therein; inability to continue to implement actions to mitigate the impact of statutory reserve requirements; changes in tax laws; and changes in accounting and reporting standards;	
 
 	•	 	liquidity, financial strength ratings, credit and counterparty risks including: insufficient internal sources to meet liquidity needs and limited or no access to capital (including the ability to obtain further financing, either by raising capital through a debt/equity financing and/or selling a percentage of the company’s ownership interests in its mortgage insurance businesses, or under a secured term loan or credit facility); the impact on holding company liquidity caused by the inability to receive dividends or other returns of capital from the company’s mortgage insurance businesses as a result of the COVID-19 pandemic; the impact of increased leverage as a result of the AXA settlement and related restrictions; continued availability of capital and financing; future adverse rating agency actions against the company or its U.S. mortgage insurance subsidiary, including with respect to rating downgrades or potential downgrades or being put on review for potential downgrade, all of which could have adverse implications for the company, including with respect to key business relationships, product offerings, business results of operations, financial condition and capital needs, strategic plans, collateral obligations and availability and terms of hedging, reinsurance and borrowings; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of the company’s fixed maturity securities portfolio; and defaults on the company’s commercial mortgage loans or the mortgage loans underlying its investments in commercial mortgage-backed securities and volatility in performance;	
 
 	•	 	operational risks including: inability to retain, attract and motivate qualified employees or senior management; ineffective or inadequate risk management in identifying, controlling or mitigating risks; the impact on processes caused by shelter-in-place or other governmental restrictions imposed as a result of the COVID-19 pandemic; reliance on, and loss of, key customer or distribution relationships; competition, including in the company’s mortgage insurance businesses from GSEs offering mortgage insurance; the design and effectiveness of the company’s disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations; and failure or any compromise of the security of the company’s computer systems, disaster recovery systems and business continuity plans and failures to safeguard, or breaches of, its confidential information;	
 
 	•	 	insurance and product-related risks including: the company’s inability to increase premiums and reduce benefits sufficiently, and in a timely manner, on its in force long term care insurance policies, in each case, as currently anticipated and as may be required from time to time in the future (including as a result of a delay or failure to obtain any necessary regulatory approvals, including as a result of the COVID-19 pandemic, or unwillingness or inability of policyholders to pay increased premiums and/or accept reduced benefits), including to offset any negative impact on the company’s long term care insurance margins; availability, affordability and adequacy of reinsurance to protect the company against losses; decreases in the volume of high loan-to-value mortgage originations or increases in mortgage insurance cancellations; increases in the use of alternatives to private mortgage insurance and reductions in the level of coverage selected; potential liabilities in connection with the company’s U.S. contract underwriting services; and medical advances, such as genetic research and diagnostic imaging, and related legislation that impact policyholder behavior in ways adverse to the company;	
 
16

 	•	 	other risks including: impairments of or valuation allowances against the company’s deferred tax assets and the occurrence of natural or man-made disasters or a pandemic, such as the COVID-19 pandemic, could materially adversely affect its financial condition and results of operations.	
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. This press release does not constitute an offering of any securities
# # #
Contact Information:
 
Investors:	investorinfo@genworth.com	
 
Media:	Julie Westermann, 804 662.2423	
julie.westermann@genworth.com
 
17

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

 	  	Three months ended
September 30,	 	 	Three months ended
June 30,
2020	 	
 	  	2020	 	  	2019	 				
Revenues:	  				  				 				
Premiums	  	$	1,034	 	  	$	1,015	 	 	$	1,019	 	
Net investment income	  	 	827	 	  	 	816	 	 	 	786	 	
Net investment gains (losses)	  	 	375	 	  	 	(2	) 	 	 	159	 	
Policy fees and other income	  	 	184	 	  	 	191	 	 	 	174	 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Total revenues	  	 	2,420	 	  	 	2,020	 	 	 	2,138	 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Benefits and expenses:	  				  				 				
Benefits and other changes in policy reserves	  	 	1,299	 	  	 	1,284	 	 	 	1,486	 	
Interest credited	  	 	137	 	  	 	146	 	 	 	139	 	
Acquisition and operating expenses, net of deferrals	  	 	249	 	  	 	247	 	 	 	223	 	
Amortization of deferred acquisition costs and intangibles	  	 	101	 	  	 	112	 	 	 	93	 	
Goodwill impairment	  	 	—  	 	  	 	—  	 	 	 	5	 	
Interest expense	  	 	49	 	  	 	59	 	 	 	44	 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,835	 	  	 	1,848	 	 	 	1,990	 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Income from continuing operations before income taxes	  	 	585	 	  	 	172	 	 	 	148	 	
Provision for income taxes	  	 	150	 	  	 	34	 	 	 	46	 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Income from continuing operations	  	 	435	 	  	 	138	 	 	 	102	 	
Income (loss) from discontinued operations, net of taxes	  	 	1	 	  	 	(80	) 	 	 	(520	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Net income (loss)	  	 	436	 	  	 	58	 	 	 	(418	) 	
Less: net income from continuing operations attributable to noncontrolling interests	  	 	18	 	  	 	10	 	 	 	23	 	
Less: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	  	 	30	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	  	$	418	 	  	$	18	 	 	$	(441	) 	

Net income (loss) available to Genworth Financial, Inc.’s common stockholders:	  				  				 				
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders	  	$	417	 	  	$	128	 	 	$	79	 	
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders	  	 	1	 	  	 	(110	) 	 	 	(520	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	  	$	418	 	  	$	18	 	 	$	(441	) 	

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:	  				  				 				
Basic	  	$	0.83	 	  	$	0.25	 	 	$	0.16	 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Diluted	  	$	0.82	 	  	$	0.25	 	 	$	0.15	 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:	  				  				 				
Basic	  	$	0.83	 	  	$	0.04	 	 	$	(0.87	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Diluted	  	$	0.82	 	  	$	0.04	 	 	$	(0.86	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Weighted-average common shares outstanding:	  				  				 				
Basic	  	 	505.6	 	  	 	503.5	 	 	 	505.4	 	
	  	 	 	 	  	 	 	 	 	 	 	 	
Diluted	  	 	511.5	 	  	 	511.2	 	 	 	512.5	 	

18

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

 	  	Three
months ended
September 30,	 	 	Three
months ended
June 30,
2020	 	
 	  	2020	 	 	2019	 				
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	  	$	418	 	 	$	18	 	 	$	(441	) 	
Add: net income from continuing operations attributable to noncontrolling interests	  	 	18	 	 	 	10	 	 	 	23	 	
Add: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	30	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	436	 	 	 	58	 	 	 	(418	) 	
Less: income (loss) from discontinued operations, net of taxes	  	 	1	 	 	 	(80	) 	 	 	(520	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	 	435	 	 	 	138	 	 	 	102	 	
Less: net income from continuing operations attributable to noncontrolling interests	  	 	18	 	 	 	10	 	 	 	23	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders	  	 	417	 	 	 	128	 	 	 	79	 	
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:	  				 				 				
Net investment (gains) losses, net13	  	 	(362	) 	 	 	(5	) 	 	 	(131	) 	
Goodwill impairment, net14	  	 	—  	 	 	 	—  	 	 	 	3	 	
(Gains) losses on early extinguishment of debt	  	 	—  	 	 	 	—  	 	 	 	(3	) 	
Expenses related to restructuring	  	 	—  	 	 	 	—  	 	 	 	1	 	
Taxes on adjustments	  	 	77	 	 	 	—  	 	 	 	30	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income (loss)	  	$	132	 	 	$	123	 	 	$	(21	) 	

Adjusted operating income (loss):	  				 				 				
U.S. Mortgage Insurance segment	  	$	141	 	 	$	137	 	 	$	(3	) 	
Australia Mortgage Insurance segment	  	 	7	 	 	 	12	 	 	 	1	 	
U.S. Life Insurance segment:	  				 				 				
Long Term Care Insurance	  	 	59	 	 	 	21	 	 	 	48	 	
Life Insurance	  	 	(69	) 	 	 	(25	) 	 	 	(81	) 	
Fixed Annuities	  	 	24	 	 	 	3	 	 	 	28	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total U.S. Life Insurance segment	  	 	14	 	 	 	(1	) 	 	 	(5	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Runoff segment	  	 	19	 	 	 	10	 	 	 	24	 	
Corporate and Other	  	 	(49	) 	 	 	(35	) 	 	 	(38	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income (loss)	  	$	132	 	 	$	123	 	 	$	(21	) 	

Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:	  				 				 				
Basic	  	$	0.83	 	 	$	0.04	 	 	$	(0.87	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.82	 	 	$	0.04	 	 	$	(0.86	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income (loss) per share:	  				 				 				
Basic	  	$	0.26	 	 	$	0.25	 	 	$	(0.04	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.26	 	 	$	0.24	 	 	$	(0.04	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average common shares outstanding:	  				 				 				
Basic	  	 	505.6	 	 	 	503.5	 	 	 	505.4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	 	511.5	 	 	 	511.2	 	 	 	512.5	 	

13 	For the three months ended September 30, 2020, September 30, 2019 and June 30, 2020, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $1 million, $(3) million and $(4) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $12 million, $(4) million and $32 million, respectively.	
14 	For the three months ended June 30, 2020, goodwill impairment was adjusted by $2 million related to the company’s mortgage insurance business in Australia for the portion attributable to noncontrolling interests.	
 
19

Condensed Consolidated Balance Sheets
(Amounts in millions)

 	  	September 30,
2020	 	 	December 31,
2019	 	
 	  	(Unaudited)	 	 	 	 	
Assets	  				 				
Cash, cash equivalents, restricted cash and invested assets	  	$	79,910	 	 	$	75,226	 	
Deferred acquisition costs	  	 	1,623	 	 	 	1,836	 	
Intangible assets and goodwill	  	 	209	 	 	 	201	 	
Reinsurance recoverable, net	  	 	16,788	 	 	 	17,103	 	
Deferred tax and other assets	  	 	695	 	 	 	868	 	
Separate account assets	  	 	5,700	 	 	 	6,108	 	
	  	 	 	 	 	 	 	 	
Total assets	  	$	104,925	 	 	$	101,342	 	
	  	 	 	 	 	 	 	 	
Liabilities and equity	  				 				
Liabilities:	  				 				
Future policy benefits	  	$	41,995	 	 	$	40,384	 	
Policyholder account balances	  	 	22,731	 	 	 	22,217	 	
Liability for policy and contract claims	  	 	11,373	 	 	 	10,958	 	
Unearned premiums	  	 	1,846	 	 	 	1,893	 	
Other liabilities	  	 	1,913	 	 	 	1,386	 	
Non-recourse funding obligations	  	 	—  	 	 	 	311	 	
Long-term borrowings	  	 	3,570	 	 	 	3,277	 	
Separate account liabilities	  	 	5,700	 	 	 	6,108	 	
Liabilities related to discontinued operations	  	 	565	 	 	 	176	 	
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	89,693	 	 	 	86,710	 	
	  	 	 	 	 	 	 	 	
Equity:	  				 				
Common stock	  	 	1	 	 	 	1	 	
Additional paid-in capital	  	 	11,997	 	 	 	11,990	 	
Accumulated other comprehensive income (loss)	  	 	4,141	 	 	 	3,433	 	
Retained earnings	  	 	1,317	 	 	 	1,461	 	
Treasury stock, at cost	  	 	(2,700	) 	 	 	(2,700	) 	
	  	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	14,756	 	 	 	14,185	 	
Noncontrolling interests	  	 	476	 	 	 	447	 	
	  	 	 	 	 	 	 	 	
Total equity	  	 	15,232	 	 	 	14,632	 	
	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	104,925	 	 	$	101,342	 	

20

Impact of Foreign Exchange on Adjusted Operating Income and Flow New Insurance Written15
Three months ended September 30, 2020

 	  	Percentages
Including Foreign
Exchange	 	 	Percentages
Excluding Foreign
Exchange16	 	
Australia MI:	  				 				
Adjusted operating income	  	 	(42	)% 	 	 	(42	)% 	
Flow new insurance written	  	 	20	% 	 	 	17	% 	
Flow new insurance written (3Q20 vs. 2Q20)	  	 	25	% 	 	 	14	% 	

15 	All percentages are comparing the third quarter of 2020 to the third quarter of 2019 unless otherwise stated.	
16 	The impact of foreign exchange was calculated using the comparable prior period exchange rates.	
 
21

Reconciliation of Reported Yield to Core Yield
										
 	  	Three
months ended	 		
	(Assets - amounts in billions)	  	September 30,
2020	 	 	June 30,
2020	 	
Reported Total Invested Assets and Cash	  	$	79.3	 	 	$	77.9	 		
Subtract:	  				 					
Securities lending	  	 	0.1	 	 	 	0.1	 		
Unrealized gains (losses)	  	 	10.0	 	 	 	9.7	 		
	  	 	 	 	 	 	 	 		
Adjusted End of Period Invested Assets and Cash	  	$	69.2	 	 	$	68.1	 		
	  	 	 	 	 	 	 	 		
Average Invested Assets and Cash Used in Reported and Core Yield Calculation	  	$	68.7	 	 	$	67.6	 		

	(Income - amounts in millions)	  	 	 	 	 	 	
Reported Net Investment Income	  	$	827	 	 	$	786	 		
Subtract:	  				 					
Bond calls and commercial mortgage loan prepayments	  	 	23	 	 	 	8	 		
Other non-core items17	  	 	6	 	 	 	2	 		
	  	 	 	 	 	 	 	 		
Core Net Investment Income	  	$	798	 	 	$	776	 		

Reported Yield	  	 	4.82	% 	 	 	4.65	% 		
	  	 	 	 	 	 	 	 		
Core Yield	  	 	4.65	% 	 	 	4.59	% 		

17 	Includes cost basis adjustments on structured securities and various other immaterial items.	
 
22

Exhibit 99.2

 

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2020

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

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

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

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

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

	Balance Sheet Data	  	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	  	$	10,615	 	 	$	10,196	 	 	$	10,634	 	 	$	10,752	 	 	$	10,765	 		
Total accumulated other comprehensive income	  	 	4,141	 	 	 	4,447	 	 	 	3,815	 	 	 	3,433	 	 	 	3,622	 		
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Total Genworth Financial, Inc.’s stockholders’ equity	  	$	14,756	 	 	$	14,643	 	 	$	14,449	 	 	$	14,185	 	 	$	14,387	 		
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Book value per share	  	$	29.19	 	 	$	28.96	 	 	$	28.61	 	 	$	28.17	 	 	$	28.57	 		
Book value per share, excluding accumulated other comprehensive income	  	$	20.99	 	 	$	20.17	 	 	$	21.05	 	 	$	21.35	 	 	$	21.38	 		
Common shares outstanding as of the balance sheet date	  	 	505.6	 	 	 	505.6	 	 	 	505.1	 	 	 	503.5	 	 	 	503.5	 		
			
 	  	Twelve months ended	 		
	Twelve Month Rolling Average ROE	  	September 30,
2020	 	 	June 30,
        2020        	 	 	March 31,
        2020        	 	 	December 31,
2019	 	 	September 30,
2019	 	
U.S. GAAP Basis ROE	  	 	(1.0)	% 	 	 	(4.8)	% 	 	 	1.0	% 	 	 	3.2	% 	 	 	0.3	% 		
Operating ROE(1)	  	 	1.6	% 	 	 	1.5	% 	 	 	3.3	% 	 	 	3.9	% 	 	 	0.9	% 		
			
 	  	Three months ended	 		
	Quarterly Average ROE	  	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	
U.S. GAAP Basis ROE	  	 	15.7	% 	 	 	(16.9	)% 	 	 	(2.5)	% 	 	 	(0.6)	% 	 	 	0.7	% 		
Operating ROE(1)	  	 	5.0	% 	 	 	(0.8	)% 	 	 	1.2	% 	 	 	0.9	% 	 	 	4.6	% 		

	Basic and Diluted Shares	  	Three months ended
September 30, 2020	 	  	Nine months ended
September 30, 2020	 	  	                                                                 	
Weighted-average common shares used in basic earnings per share calculations	  	 	505.6	 	  	 	505.1	 				
Potentially dilutive securities:	  				  							
Stock options, restricted stock units and stock appreciation rights	  	 	5.9	 	  	 	6.1	 				
	  	 	 	 	  	 	 	 				
Weighted-average common shares used in diluted earnings per share calculations	  	 	511.5	 	  	 	511.2	 				

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

 
Consolidated Quarterly Results

 
7

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

 	  	2020	 	 	2019	 	
 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	 				 				 				 				 				 				 				 				
Premiums	  	$	1,034	 	 	$	1,019	 	 	$	1,015	 	 	$	3,068	 	 	$	1,033	 	 	$	1,015	 	 	$	1,001	 	 	$	988	 	 	$	4,037	 	
Net investment income	  	 	827	 	 	 	786	 	 	 	793	 	 	 	2,406	 	 	 	794	 	 	 	816	 	 	 	816	 	 	 	794	 	 	 	3,220	 	
Net investment gains (losses)	  	 	375	 	 	 	159	 	 	 	(152	) 	 	 	382	 	 	 	23	 	 	 	(2	) 	 	 	(46	) 	 	 	75	 	 	 	50	 	
Policy fees and other income	  	 	184	 	 	 	174	 	 	 	181	 	 	 	539	 	 	 	188	 	 	 	191	 	 	 	223	 	 	 	187	 	 	 	789	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	2,420	 	 	 	2,138	 	 	 	1,837	 	 	 	6,395	 	 	 	2,038	 	 	 	2,020	 	 	 	1,994	 	 	 	2,044	 	 	 	8,096	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	 				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	1,299	 	 	 	1,486	 	 	 	1,361	 	 	 	4,146	 	 	 	1,346	 	 	 	1,284	 	 	 	1,251	 	 	 	1,282	 	 	 	5,163	 	
Interest credited	  	 	137	 	 	 	139	 	 	 	141	 	 	 	417	 	 	 	138	 	 	 	146	 	 	 	146	 	 	 	147	 	 	 	577	 	
Acquisition and operating expenses, net of deferrals	  	 	249	 	 	 	223	 	 	 	249	 	 	 	721	 	 	 	249	 	 	 	247	 	 	 	229	 	 	 	237	 	 	 	962	 	
Amortization of deferred acquisition costs and intangibles	  	 	101	 	 	 	93	 	 	 	116	 	 	 	310	 	 	 	164	 	 	 	112	 	 	 	84	 	 	 	81	 	 	 	441	 	
Goodwill impairment	  	 	—  	 	 	 	5	 	 	 	—  	 	 	 	5	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Interest expense	  	 	49	 	 	 	44	 	 	 	52	 	 	 	145	 	 	 	60	 	 	 	59	 	 	 	60	 	 	 	60	 	 	 	239	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,835	 	 	 	1,990	 	 	 	1,919	 	 	 	5,744	 	 	 	1,957	 	 	 	1,848	 	 	 	1,770	 	 	 	1,807	 	 	 	7,382	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	585	 	 	 	148	 	 	 	(82	) 	 	 	651	 	 	 	81	 	 	 	172	 	 	 	224	 	 	 	237	 	 	 	714	 	
Provision (benefit) for income taxes	  	 	150	 	 	 	46	 	 	 	(10	) 	 	 	186	 	 	 	26	 	 	 	34	 	 	 	66	 	 	 	69	 	 	 	195	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	435	 	 	 	102	 	 	 	(72	) 	 	 	465	 	 	 	55	 	 	 	138	 	 	 	158	 	 	 	168	 	 	 	519	 	
Income (loss) from discontinued operations, net of taxes(1)	  	 	1	 	 	 	(520	) 	 	 	—  	 	 	 	(519	) 	 	 	(31	) 	 	 	(80	) 	 	 	60	 	 	 	62	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	436	 	 	 	(418	) 	 	 	(72	) 	 	 	(54	) 	 	 	24	 	 	 	58	 	 	 	218	 	 	 	230	 	 	 	530	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	18	 	 	 	23	 	 	 	(6	) 	 	 	35	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
Less: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	22	 	 	 	30	 	 	 	35	 	 	 	36	 	 	 	123	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	$	418	 	 	$	(441	) 	 	$	(66	) 	 	$	(89	) 	 	$	(17	) 	 	$	18	 	 	$	168	 	 	$	174	 	 	$	343	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:	  			 	 				 				 				 				 				 				 				 				
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	  	$	417	 	 	$	79	 	 	$	(66	) 	 	$	430	 	 	$	36	 	 	$	128	 	 	$	143	 	 	$	148	 	 	$	455	 	
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders	  	 	1	 	 	 	(520	) 	 	 	—  	 	 	 	(519	) 	 	 	(53	) 	 	 	(110	) 	 	 	25	 	 	 	26	 	 	 	(112	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	$	418	 	 	$	(441	) 	 	$	(66	) 	 	$	(89	) 	 	$	(17	) 	 	$	18	 	 	$	168	 	 	$	174	 	 	$	343	 	

Earnings (Loss) Per Share Data:	  				 				 				 				 				 				 				 				 				
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share	  				 				 				 				 				 				 				 				 				
Basic	  	$	0.83	 	 	$	0.16	 	 	$	(0.13	) 	 	$	0.85	 	 	$	0.07	 	 	$	0.25	 	 	$	0.29	 	 	$	0.29	 	 	$	0.90	 	
Diluted	  	$	0.82	 	 	$	0.15	 	 	$	(0.13	) 	 	$	0.84	 	 	$	0.07	 	 	$	0.25	 	 	$	0.28	 	 	$	0.29	 	 	$	0.89	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share	  				 				 				 				 				 				 				 				 				
Basic	  	$	0.83	 	 	$	(0.87	) 	 	$	(0.13	) 	 	$	(0.18	) 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.35	 	 	$	0.68	 	
Diluted	  	$	0.82	 	 	$	(0.86	) 	 	$	(0.13	) 	 	$	(0.17	) 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.34	 	 	$	0.67	 	
Weighted-average common shares outstanding	  				 				 				 				 				 				 				 				 				
Basic	  	 	505.6	 	 	 	505.4	 	 	 	504.3	 	 	 	505.1	 	 	 	503.5	 	 	 	503.5	 	 	 	503.4	 	 	 	501.2	 	 	 	502.9	 	
Diluted(2)	  	 	511.5	 	 	 	512.5	 	 	 	504.3	 	 	 	511.2	 	 	 	510.4	 	 	 	511.2	 	 	 	508.7	 	 	 	508.6	 	 	 	509.7	 	

(1) 	Income (loss) from discontinued operations relates to the company’s former Canada mortgage insurance business that was sold on December 12, 2019 and its former lifestyle protection insurance business that was sold on December 1, 2015. During the third quarter of 2020, based on an updated estimate, the company reduced a liability associated with underwriting losses on a product sold by a distributor in the company’s former lifestyle protection insurance business which resulted in a benefit of $23 million. In addition, during the third quarter of 2020, the company recognized a loss of $22 million attributable to changes in foreign exchange rates on balances owed to AXA S.A. (AXA) under a settlement agreement reached in the second quarter of 2020 regarding a dispute over payment protection insurance claims sold by the company’s former lifestyle protection insurance business, along with interest expense and other legal fees and expenses. During the second quarter of 2020, the company recorded an after-tax loss of $520 million in connection with the settlement agreement, including legal fees and other expenses. During the fourth quarter of 2019, the company also recorded an after-tax loss of $110 million prior to reaching the settlement agreement with AXA.	
(2) 	Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.	
 
8

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

 	  	2020	 	 	2019	 	
 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	$	418	 	 	$	(441	) 	 	$	(66	) 	 	$	(89	) 	 	$	(17	) 	 	$	18	 	 	$	168	 	 	$	174	 	 	$	343	 	
Add: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	18	 	 	 	23	 	 	 	(6	) 	 	 	35	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
Add: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	22	 	 	 	30	 	 	 	35	 	 	 	36	 	 	 	123	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	436	 	 	 	(418	) 	 	 	(72	) 	 	 	(54	) 	 	 	24	 	 	 	58	 	 	 	218	 	 	 	230	 	 	 	530	 	
Less: income (loss) from discontinued operations, net of taxes	  	 	1	 	 	 	(520	) 	 	 	—  	 	 	 	(519	) 	 	 	(31	) 	 	 	(80	) 	 	 	60	 	 	 	62	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	435	 	 	 	102	 	 	 	(72	) 	 	 	465	 	 	 	55	 	 	 	138	 	 	 	158	 	 	 	168	 	 	 	519	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	18	 	 	 	23	 	 	 	(6	) 	 	 	35	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	 	417	 	 	 	79	 	 	 	(66	) 	 	 	430	 	 	 	36	 	 	 	128	 	 	 	143	 	 	 	148	 	 	 	455	 	
	 									
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:	  			 	 				 				 				 				 				 				 				 				
Net investment (gains) losses, net(1)	  	 	(362	) 	 	 	(131	) 	 	 	115	 	 	 	(378	) 	 	 	(17	) 	 	 	(5	) 	 	 	43	 	 	 	(71	) 	 	 	(50	) 	
Goodwill impairment, net(2)	  	 	—  	 	 	 	3	 	 	 	—  	 	 	 	3	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
(Gains) losses on early extinguishment of debt	  	 	—  	 	 	 	(3	) 	 	 	12	 	 	 	9	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Expenses related to restructuring	  	 	—  	 	 	 	1	 	 	 	1	 	 	 	2	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	
Taxes on adjustments	  	 	77	 	 	 	30	 	 	 	(29	) 	 	 	78	 	 	 	5	 	 	 	—  	 	 	 	(8	) 	 	 	14	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	132	 	 	$	(21	) 	 	$	33	 	 	$	144	 	 	$	24	 	 	$	123	 	 	$	178	 	 	$	95	 	 	$	420	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS):	  			 	 				 				 				 				 				 				 				 				
U.S. Mortgage Insurance segment	  	$	141	 	 	$	(3	) 	 	$	148	 	 	$	286	 	 	$	160	 	 	$	137	 	 	$	147	 	 	$	124	 	 	$	568	 	
Australia Mortgage Insurance segment	  	 	7	 	 	 	1	 	 	 	9	 	 	 	17	 	 	 	12	 	 	 	12	 	 	 	13	 	 	 	14	 	 	 	51	 	
U.S. Life Insurance segment:	  			 	 				 				 				 				 				 				 				 				
Long-Term Care Insurance	  	 	59	 	 	 	48	 	 	 	1	 	 	 	108	 	 	 	19	 	 	 	21	 	 	 	37	 	 	 	(20	) 	 	 	57	 	
Life Insurance	  	 	(69	) 	 	 	(81	) 	 	 	(77	) 	 	 	(227	) 	 	 	(164	) 	 	 	(25	) 	 	 	10	 	 	 	(2	) 	 	 	(181	) 	
Fixed Annuities	  	 	24	 	 	 	28	 	 	 	6	 	 	 	58	 	 	 	30	 	 	 	3	 	 	 	19	 	 	 	17	 	 	 	69	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total U.S. Life Insurance segment	  	 	14	 	 	 	(5	) 	 	 	(70	) 	 	 	(61	) 	 	 	(115	) 	 	 	(1	) 	 	 	66	 	 	 	(5	) 	 	 	(55	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Runoff segment	  	 	19	 	 	 	24	 	 	 	(13	) 	 	 	30	 	 	 	17	 	 	 	10	 	 	 	9	 	 	 	20	 	 	 	56	 	
Corporate and Other	  	 	(49	) 	 	 	(38	) 	 	 	(41	) 	 	 	(128	) 	 	 	(50	) 	 	 	(35	) 	 	 	(57	) 	 	 	(58	) 	 	 	(200	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	132	 	 	$	(21	) 	 	$	33	 	 	$	144	 	 	$	24	 	 	$	123	 	 	$	178	 	 	$	95	 	 	$	420	 	

Earnings (Loss) Per Share Data:	  				 				 				 				 				 				 				 				 				
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share	  				 				 				 				 				 				 				 				 				
Basic	  	$	0.83	 	 	$	(0.87	) 	 	$	(0.13	) 	 	$	(0.18	) 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.35	 	 	$	0.68	 	
Diluted	  	$	0.82	 	 	$	(0.86	) 	 	$	(0.13	) 	 	$	(0.17	) 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.34	 	 	$	0.67	 	
Adjusted operating income (loss) per share	  				 				 				 				 				 				 				 				 				
Basic	  	$	0.26	 	 	$	(0.04	) 	 	$	0.07	 	 	$	0.29	 	 	$	0.05	 	 	$	0.25	 	 	$	0.35	 	 	$	0.19	 	 	$	0.84	 	
Diluted	  	$	0.26	 	 	$	(0.04	) 	 	$	0.07	 	 	$	0.28	 	 	$	0.05	 	 	$	0.24	 	 	$	0.35	 	 	$	0.19	 	 	$	0.82	 	
Weighted-average common shares outstanding	  				 				 				 				 				 				 				 				 				
Basic	  	 	505.6	 	 	 	505.4	 	 	 	504.3	 	 	 	505.1	 	 	 	503.5	 	 	 	503.5	 	 	 	503.4	 	 	 	501.2	 	 	 	502.9	 	
Diluted(3)	  	 	511.5	 	 	 	512.5	 	 	 	504.3	 	 	 	511.2	 	 	 	510.4	 	 	 	511.2	 	 	 	508.7	 	 	 	508.6	 	 	 	509.7	 	

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

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

 	  	September 30,
2020	 	  	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	
ASSETS	  			 	  				 				 				 				
Investments:	  			 	  				 				 				 				
Fixed maturity securities available-for-sale, at fair value(1)	  	$	64,416	 	  	$	63,544	 	 	$	59,051	 	 	$	60,339	 	 	$	61,233	 	
Equity securities, at fair value	  	 	629	 	  	 	206	 	 	 	188	 	 	 	239	 	 	 	239	 	
Commercial mortgage loans(2)	  	 	6,911	 	  	 	6,945	 	 	 	6,944	 	 	 	6,976	 	 	 	7,045	 	
Less: Allowance for credit losses	  	 	(31	) 	  	 	(28	) 	 	 	(29	) 	 	 	(13	) 	 	 	(12	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial mortgage loans, net	  	 	6,880	 	  	 	6,917	 	 	 	6,915	 	 	 	6,963	 	 	 	7,033	 	
Policy loans	  	 	2,153	 	  	 	2,182	 	 	 	2,052	 	 	 	2,058	 	 	 	2,069	 	
Other invested assets	  	 	2,402	 	  	 	2,473	 	 	 	2,465	 	 	 	1,632	 	 	 	1,693	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total investments	  	 
 	 
76,480	 

75,322	 

70,671	 

71,231	 

72,267	 
 	
Cash, cash equivalents and restricted cash	  	 	2,780	 	  	 	2,597	 	 	 	2,483	 	 	 	3,341	 	 	 	1,629	 	
Accrued investment income	  	 	650	 	  	 	601	 	 	 	707	 	 	 	654	 	 	 	643	 	
Deferred acquisition costs	  	 	1,623	 	  	 	1,718	 	 	 	1,898	 	 	 	1,836	 	 	 	1,881	 	
Intangible assets and goodwill	  	 	209	 	  	 	223	 	 	 	263	 	 	 	201	 	 	 	210	 	
Reinsurance recoverable	  	 	16,832	 	  	 	16,944	 	 	 	17,122	 	 	 	17,103	 	 	 	17,180	 	
Less: Allowance for credit losses	  	 	(44	) 	  	 	(44	) 	 	 	(42	) 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reinsurance recoverable, net	  	 	16,788	 	  	 	16,900	 	 	 	17,080	 	 	 	17,103	 	 	 	17,180	 	
Other assets	  	 	445	 	  	 	454	 	 	 	456	 	 	 	443	 	 	 	479	 	
Deferred tax asset	  	 	250	 	  	 	286	 	 	 	319	 	 	 	425	 	 	 	236	 	
Separate account assets	  	 	5,700	 	  	 	5,536	 	 	 	4,967	 	 	 	6,108	 	 	 	6,005	 	
Assets held for sale related to discontinued operations(3)	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	5,123	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	 
$	 
104,925	 
 	  	 
$	 
103,637	 
 	 	 
$	 
98,844	 
 	 	 
$	 
101,342	 
 	 	 
$	 
105,653	 

	  	 	 	 	  				 				 				 				

(1) 	Amortized cost of $55,252 million, $54,834 million and $54,136 million as of September 30, 2020, June 30, 2020 and March 31, 2020, respectively, and allowance for credit losses of $5 million, $7 million and $— as of September 30, 2020, June 30, 2020 and March 31, 2020, respectively.	
(2) 	Net of unamortized balance of loan origination fees and costs of $4 million as of September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019.	
(3) 	Prior to the sale on December 12, 2019, the assets of the company’s former Canada mortgage insurance business were held for sale related to discontinued operations and segregated in the consolidated balance sheets.	
 
10

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

 	  	September 30,
2020	 	  	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 	
LIABILITIES AND EQUITY	  			 	  				 				 				 				
Liabilities:	  			 	  				 				 				 				
Future policy benefits	  	$	41,995	 	  	$	41,463	 	 	$	39,339	 	 	$	40,384	 	 	$	40,489	 	
Policyholder account balances	  	 	22,731	 	  	 	22,921	 	 	 	22,313	 	 	 	22,217	 	 	 	22,607	 	
Liability for policy and contract claims	  	 	11,373	 	  	 	11,280	 	 	 	11,132	 	 	 	10,958	 	 	 	10,780	 	
Unearned premiums	  	 	1,846	 	  	 	1,804	 	 	 	1,722	 	 	 	1,893	 	 	 	1,863	 	
Other liabilities(1)	  	 	1,913	 	  	 	2,033	 	 	 	1,645	 	 	 	1,386	 	 	 	1,404	 	
Non-recourse funding obligations	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	311	 	 	 	311	 	
Long-term borrowings	  	 	3,570	 	  	 	2,817	 	 	 	2,851	 	 	 	3,277	 	 	 	3,706	 	
Separate account liabilities	  	 	5,700	 	  	 	5,536	 	 	 	4,967	 	 	 	6,108	 	 	 	6,005	 	
Liabilities held for sale related to discontinued operations(1),(2)	  	 	565	 	  	 	695	 	 	 	41	 	 	 	176	 	 	 	2,343	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	89,693	 	  	 	88,549	 	 	 	84,010	 	 	 	86,710	 	 	 	89,508	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity:	  			 	  				 				 				 				
Common stock	  	 	1	 	  	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	
Additional paid-in capital	  	 	11,997	 	  	 	11,996	 	 	 	11,993	 	 	 	11,990	 	 	 	11,986	 	
Accumulated other comprehensive income (loss)	  	 	4,141	 	  	 	4,447	 	 	 	3,815	 	 	 	3,433	 	 	 	3,622	 	
Retained earnings	  	 	1,317	 	  	 	899	 	 	 	1,340	 	 	 	1,461	 	 	 	1,478	 	
Treasury stock, at cost	  	 	(2,700	) 	  	 	(2,700	) 	 	 	(2,700	) 	 	 	(2,700	) 	 	 	(2,700	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	14,756	 	  	 	14,643	 	 	 	14,449	 	 	 	14,185	 	 	 	14,387	 	
Noncontrolling interests	  	 	476	 	  	 	445	 	 	 	385	 	 	 	447	 	 	 	1,758	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	15,232	 	  	 	15,088	 	 	 	14,834	 	 	 	14,632	 	 	 	16,145	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	104,925	 	  	$	103,637	 	 	$	98,844	 	 	$	101,342	 	 	$	105,653	 	

 

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

11

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

 	  	September 30, 2020	 	
 	  	U.S.
Mortgage
Insurance	 	  	Australia
Mortgage
Insurance	 	  	U.S. Life
Insurance	 	  	Runoff	 	  	Corporate and
Other(1)	 	 	Total	 	
ASSETS	  				  				  				  				  				 				
Cash and investments	  	$	5,394	 	  	$	2,384	 	  	$	66,549	 	  	$	3,320	 	  	$	2,263	 	 	$	79,910	 	
Deferred acquisition costs and intangible assets	  	 	49	 	  	 	82	 	  	 	1,546	 	  	 	145	 	  	 	10	 	 	 	1,832	 	
Reinsurance recoverable, net	  	 	—  	 	  	 	—  	 	  	 	16,065	 	  	 	723	 	  	 	—  	 	 	 	16,788	 	
Deferred tax and other assets	  	 	51	 	  	 	135	 	  	 	48	 	  	 	13	 	  	 	448	 	 	 	695	 	
Separate account assets	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	5,700	 	  	 	—  	 	 	 	5,700	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total assets	  	$	5,494	 	  	$	2,601	 	  	$	84,208	 	  	$	9,901	 	  	$	2,721	 	 	$	104,925	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	  				  				  				  				  				 				
Liabilities:	  				  				  				  				  				 				
Future policy benefits	  	$	—  	 	  	$	—  	 	  	$	41,993	 	  	$	2	 	  	$	—  	 	 	$	41,995	 	
Policyholder account balances	  	 	—  	 	  	 	—  	 	  	 	19,158	 	  	 	3,573	 	  	 	—  	 	 	 	22,731	 	
Liability for policy and contract claims	  	 	474	 	  	 	238	 	  	 	10,642	 	  	 	11	 	  	 	8	 	 	 	11,373	 	
Unearned premiums	  	 	328	 	  	 	1,052	 	  	 	462	 	  	 	4	 	  	 	—  	 	 	 	1,846	 	
Other liabilities	  	 	130	 	  	 	188	 	  	 	980	 	  	 	48	 	  	 	567	 	 	 	1,913	 	
Borrowings	  	 	738	 	  	 	169	 	  	 	—  	 	  	 	—  	 	  	 	2,663	 	 	 	3,570	 	
Separate account liabilities	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	5,700	 	  	 	—  	 	 	 	5,700	 	
Liabilities related to discontinued operations	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	565	 	 	 	565	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,670	 	  	 	1,647	 	  	 	73,235	 	  	 	9,338	 	  	 	3,803	 	 	 	89,693	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Equity:	  				  				  				  				  				 				
Allocated equity, excluding accumulated other comprehensive income (loss)	  	 	3,640	 	  	 	443	 	  	 	7,043	 	  	 	530	 	  	 	(1,041	) 	 	 	10,615	 	
Allocated accumulated other comprehensive income (loss)	  	 	184	 	  	 	35	 	  	 	3,930	 	  	 	33	 	  	 	(41	) 	 	 	4,141	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	3,824	 	  	 	478	 	  	 	10,973	 	  	 	563	 	  	 	(1,082	) 	 	 	14,756	 	
Noncontrolling interests	  	 	—  	 	  	 	476	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	476	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total equity	  	 	3,824	 	  	 	954	 	  	 	10,973	 	  	 	563	 	  	 	(1,082	) 	 	 	15,232	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	5,494	 	  	$	2,601	 	  	$	84,208	 	  	$	9,901	 	  	$	2,721	 	 	$	104,925	 	

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

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

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

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

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

 	  	U.S.
Mortgage
Insurance	 	 	Australia
Mortgage
Insurance	 	 	U.S. Life
Insurance	 	 	Runoff	 	 	Total	 	
Unamortized balance as of June 30, 2020	  	$	32	 	 	$	36	 	 	$	2,879	 	 	$	158	 	 	$	3,105	 	
Costs deferred	  	 	3	 	 	 	3	 	 	 	(6	) 	 	 	—  	 	 	 	—  	 	
Amortization, net of interest accretion	  	 	(2	) 	 	 	(2	) 	 	 	(79	) 	 	 	(4	) 	 	 	(87	) 	
Impact of foreign currency translation	  	 	—  	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	1	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unamortized balance as of September 30, 2020	  	 	33	 	 	 	38	 	 	 	2,794	 	 	 	154	 	 	 	3,019	 	
Effect of accumulated net unrealized investment (gains) losses	  	 	—  	 	 	 	—  	 	 	 	(1,384	) 	 	 	(12	) 	 	 	(1,396	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of September 30, 2020	  	$	33	 	 	$	38	 	 	$	1,410	 	 	$	142	 	 	$	1,623	 	

14

 
U.S. Mortgage Insurance Segment

 
 
15

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

 	 	2020	 	 	2019	 	
 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	 			 	 				 				 				 				 				 				 				 				
Premiums	 	$	251	 	 	$	243	 	 	$	226	 	 	$	720	 	 	$	237	 	 	$	219	 	 	$	206	 	 	$	194	 	 	$	856	 	
Net investment income	 	 	34	 	 	 	31	 	 	 	33	 	 	 	98	 	 	 	30	 	 	 	31	 	 	 	28	 	 	 	28	 	 	 	117	 	
Net investment gains (losses)	 	 	(2	) 	 	 	(1	) 	 	 	—  	 	 	 	(3	) 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	
Policy fees and other income	 	 	1	 	 	 	1	 	 	 	2	 	 	 	4	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	4	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	284	 	 	 	274	 	 	 	261	 	 	 	819	 	 	 	269	 	 	 	251	 	 	 	235	 	 	 	223	 	 	 	978	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	 			 	 				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	 	 	45	 	 	 	228	 	 	 	19	 	 	 	292	 	 	 	11	 	 	 	23	 	 	 	—  	 	 	 	16	 	 	 	50	 	
Acquisition and operating expenses, net of deferrals	 	 	54	 	 	 	47	 	 	 	50	 	 	 	151	 	 	 	50	 	 	 	51	 	 	 	44	 	 	 	46	 	 	 	191	 	
Amortization of deferred acquisition costs and intangibles	 	 	3	 	 	 	4	 	 	 	4	 	 	 	11	 	 	 	4	 	 	 	3	 	 	 	4	 	 	 	4	 	 	 	15	 	
Interest expense	 	 	6	 	 	 	—  	 	 	 	—  	 	 	 	6	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	 	 	108	 	 	 	279	 	 	 	73	 	 	 	460	 	 	 	65	 	 	 	77	 	 	 	48	 	 	 	66	 	 	 	256	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	 	 	176	 	 	 	(5	) 	 	 	188	 	 	 	359	 	 	 	204	 	 	 	174	 	 	 	187	 	 	 	157	 	 	 	722	 	
Provision (benefit) for income taxes	 	 	37	 	 	 	(1	) 	 	 	40	 	 	 	76	 	 	 	43	 	 	 	37	 	 	 	40	 	 	 	33	 	 	 	153	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	 	 	139	 	 	 	(4	) 	 	 	148	 	 	 	283	 	 	 	161	 	 	 	137	 	 	 	147	 	 	 	124	 	 	 	569	 	
	 									
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	 			 	 				 				 				 				 				 				 				 				
Net investment (gains) losses	 	 	2	 	 	 	1	 	 	 	—  	 	 	 	3	 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	
Taxes on adjustments	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	 	$	141	 	 	$	(3	) 	 	$	148	 	 	$	286	 	 	$	160	 	 	$	137	 	 	$	147	 	 	$	124	 	 	$	568	 	

SALES:	 				 				 				 				 				 				 				 				 				
Primary New Insurance Written (NIW)(1)	 	 
$	 
26,600	 
 	 	$	28,400	 	 	$	17,900	 	 	$	72,900	 	 	$	18,100	 	 	$	18,900	 	 	$	15,800	 	 	$	9,600	 	 	$	62,400	 	

(1) 	In the third quarter of 2020, the company revised the product descriptions in its U.S. Mortgage Insurance segment to conform with industry convention and certain regulatory definitions, including classifications under the Private Mortgage Insurer Eligibility Requirements (PMIERs). Prior year amounts throughout the U.S. Mortgage Insurance segment pages of this quarterly financial supplement have been reclassified to conform to the current year presentation where applicable.	
 
16

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

 	 	2020	 	 	2019	 	
 	 	3Q	 	 	2Q	 	 	1Q	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	
 	 	Primary
NIW	 	 	% of
Primary
NIW	 	 	Primary
NIW	 	 	% of
Primary
NIW	 	 	Primary
NIW	 	 	% of
Primary
NIW	 	 	Primary
NIW	 	 	% of
Primary
NIW	 	 	Primary
NIW	 	 	% of
Primary
NIW	 	 	Primary
NIW	 	 	% of
Primary
NIW	 	 	Primary
NIW	 	 	% of
Primary
NIW	 	
Product	 				 			 	 				 				 				 				 				 				 				 				 				 				 				 				
Monthly	 	$	23,400	 	 	 	88	% 	 	$	25,800	 	 	 	91	% 	 	$	16,200	 	 	 	91	% 	 	$	16,200	 	 	 	89	% 	 	$	16,500	 	 	 	87	% 	 	$	13,800	 	 	 	87	% 	 	$	8,200	 	 	 	85	% 	
Single	 	 	3,100	 	 	 	12	 	 	 	2,500	 	 	 	9	 	 	 	1,500	 	 	 	8	 	 	 	1,800	 	 	 	10	 	 	 	2,100	 	 	 	11	 	 	 	1,800	 	 	 	12	 	 	 	1,300	 	 	 	14	 	
Other(1)	 	 	100	 	 	 	—  	 	 	 	100	 	 	 	—  	 	 	 	200	 	 	 	1	 	 	 	100	 	 	 	1	 	 	 	300	 	 	 	2	 	 	 	200	 	 	 	1	 	 	 	100	 	 	 	1	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	 	$	26,600	 	 	 	100	% 	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FICO Scores	 				 			 	 				 				 				 				 				 				 				 				 				 				 				 				
Over 760	 	$	11,300	 	 	 	43	% 	 	$	12,300	 	 	 	43	% 	 	$	7,500	 	 	 	42	% 	 	$	7,400	 	 	 	41	% 	 	$	7,600	 	 	 	40	% 	 	$	6,100	 	 	 	39	% 	 	$	3,700	 	 	 	39	% 	
740-759	 	 	4,100	 	 	 	15	 	 	 	4,800	 	 	 	17	 	 	 	3,200	 	 	 	18	 	 	 	3,200	 	 	 	18	 	 	 	3,300	 	 	 	17	 	 	 	2,500	 	 	 	16	 	 	 	1,600	 	 	 	17	 	
720-739	 	 	3,500	 	 	 	13	 	 	 	4,200	 	 	 	15	 	 	 	2,600	 	 	 	14	 	 	 	2,800	 	 	 	15	 	 	 	2,700	 	 	 	14	 	 	 	2,300	 	 	 	15	 	 	 	1,400	 	 	 	15	 	
700-719	 	 	3,100	 	 	 	12	 	 	 	3,300	 	 	 	11	 	 	 	2,200	 	 	 	12	 	 	 	2,300	 	 	 	13	 	 	 	2,300	 	 	 	12	 	 	 	2,100	 	 	 	13	 	 	 	1,200	 	 	 	12	 	
680-699	 	 	2,400	 	 	 	9	 	 	 	2,200	 	 	 	8	 	 	 	1,500	 	 	 	8	 	 	 	1,500	 	 	 	8	 	 	 	1,800	 	 	 	10	 	 	 	1,600	 	 	 	10	 	 	 	900	 	 	 	9	 	
660-679(2)	 	 	1,300	 	 	 	5	 	 	 	900	 	 	 	3	 	 	 	500	 	 	 	3	 	 	 	500	 	 	 	3	 	 	 	700	 	 	 	4	 	 	 	600	 	 	 	4	 	 	 	400	 	 	 	4	 	
640-659	 	 	600	 	 	 	2	 	 	 	500	 	 	 	2	 	 	 	300	 	 	 	2	 	 	 	300	 	 	 	2	 	 	 	300	 	 	 	2	 	 	 	400	 	 	 	2	 	 	 	300	 	 	 	3	 	
620-639	 	 	300	 	 	 	1	 	 	 	200	 	 	 	1	 	 	 	100	 	 	 	1	 	 	 	100	 	 	 	—  	 	 	 	200	 	 	 	1	 	 	 	200	 	 	 	1	 	 	 	100	 	 	 	1	 	
<620	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	 	$	26,600	 	 	 	100	% 	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loan-To-Value Ratio	 				 			 	 				 				 				 				 				 				 				 				 				 				 				 				
95.01% and above	 	$	3,700	 	 	 	14	% 	 	$	3,200	 	 	 	11	% 	 	$	1,800	 	 	 	10	% 	 	$	2,000	 	 	 	11	% 	 	$	2,900	 	 	 	16	% 	 	$	2,900	 	 	 	18	% 	 	$	1,800	 	 	 	19	% 	
90.01% to 95.00%	 	 	11,700	 	 	 	44	 	 	 	12,300	 	 	 	43	 	 	 	7,700	 	 	 	43	 	 	 	7,900	 	 	 	44	 	 	 	8,000	 	 	 	42	 	 	 	6,900	 	 	 	44	 	 	 	4,200	 	 	 	44	 	
85.01% to 90.00%	 	 	7,100	 	 	 	27	 	 	 	8,100	 	 	 	29	 	 	 	5,500	 	 	 	31	 	 	 	5,600	 	 	 	31	 	 	 	5,500	 	 	 	29	 	 	 	4,300	 	 	 	27	 	 	 	2,500	 	 	 	26	 	
85.00% and below	 	 	4,100	 	 	 	15	 	 	 	4,800	 	 	 	17	 	 	 	2,900	 	 	 	16	 	 	 	2,600	 	 	 	14	 	 	 	2,500	 	 	 	13	 	 	 	1,700	 	 	 	11	 	 	 	1,100	 	 	 	11	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	 	$	26,600	 	 	 	100	% 	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Origination	 				 			 	 				 				 				 				 				 				 				 				 				 				 				 				
Purchase	 	$	20,000	 	 	 	75	% 	 	$	17,400	 	 	 	61	% 	 	$	12,000	 	 	 	67	% 	 	$	12,900	 	 	 	71	% 	 	$	14,900	 	 	 	79	% 	 	$	13,900	 	 	 	88	% 	 	$	8,600	 	 	 	90	% 	
Refinance	 	 	6,600	 	 	 	25	 	 	 	11,000	 	 	 	39	 	 	 	5,900	 	 	 	33	 	 	 	5,200	 	 	 	29	 	 	 	4,000	 	 	 	21	 	 	 	1,900	 	 	 	12	 	 	 	1,000	 	 	 	10	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	 	$	26,600	 	 	 	100	% 	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	

 

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

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

 	  	2020	 	 	2019	 	
 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Net Premiums Written	  	$	240	 	 	$	217	 	 	$	208	 	 	$	665	 	 	$	208	 	 	$	213	 	 	$	204	 	 	$	193	 	 	$	818	 	
	 									
Primary New Risk Written	  	$	6,668	 	 	$	7,011	 	 	$	4,405	 	 	$	18,084	 	 	$	4,465	 	 	$	4,647	 	 	$	3,931	 	 	$	2,403	 	 	$	15,446	 	
	 									
Primary Insurance In-Force(1)	  	$	212,400	 	 	$	206,600	 	 	$	197,700	 	 				 	$	191,300	 	 	$	185,400	 	 	$	177,500	 	 	$	169,400	 	 				
	 									
Risk In-Force	  			 	 				 				 				 				 				 				 				 				
Primary	  	$	51,393	 	 	$	49,868	 	 	$	47,740	 	 				 	$	46,246	 	 	$	44,903	 	 	$	42,936	 	 	$	41,040	 	 				
Pool	  	 	156	 	 	 	169	 	 	 	179	 	 				 	 	188	 	 	 	201	 	 	 	210	 	 	 	219	 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Risk In-Force	  	$	51,549	 	 	$	50,037	 	 	$	47,919	 	 				 	$	46,434	 	 	$	45,104	 	 	$	43,146	 	 	$	41,259	 	 				

Primary Risk In-Force That Is GSE Conforming	  	 	93	% 	 	 	93	% 	 	 	92	% 	 				 	 	93	% 	 	 	93	% 	 	 	93	% 	 	 	93	% 	 				
	 									
Expense Ratio (Net Earned Premiums)(2)	  	 	23	% 	 	 	21	% 	 	 	24	% 	 	 	23	% 	 	 	23	% 	 	 	24	% 	 	 	24	% 	 	 	25	% 	 	 	24	% 	
	 									
Expense Ratio (Net Premiums Written)(3)	  	 	24	% 	 	 	23	% 	 	 	26	% 	 	 	24	% 	 	 	27	% 	 	 	25	% 	 	 	24	% 	 	 	26	% 	 	 	25	% 	
	 									
Primary Persistency	  	 	60	% 	 	 	60	% 	 	 	76	% 	 				 	 	74	% 	 	 	75	% 	 	 	82	% 	 	 	86	% 	 				
	 									
Risk To Capital Ratio(4)	  	 	12.1:1	 	 	 	12.0:1	 	 	 	12.2:1	 	 				 	 	12.2:1	 	 	 	11.9:1	 	 	 	11.8:1	 	 	 	11.9:1	 	 				
	 									
PMIERs Sufficiency Ratio(5)	  	 	132	% 	 	 	143	% 	 	 	142	% 	 				 	 	138	% 	 	 	129	% 	 	 	123	% 	 	 	123	% 	 				
	 									
Average Primary Loan Size (in thousands)	  	$	232	 	 	$	231	 	 	$	228	 	 				 	$	225	 	 	$	222	 	 	$	220	 	 	$	216	 	 				
 
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) 	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) 	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.	
(5) 	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 and does not take into consideration the impact of restrictions recently imposed by the government-sponsored enterprises (GSEs). As of September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, the PMIERs sufficiency ratios were $1,074 million, $1,275 million, $1,171 million, $1,057 million, $861million, $673 million and $648 million, respectively, of available assets above the published PMIERs requirements. The GSEs have imposed certain capital restrictions on the U.S. mortgage insurance business which remain in effect until certain conditions are met. These restrictions currently require Genworth Mortgage Insurance Corporation, the company’s principal U.S. mortgage insurance subsidiary, to maintain 115% of PMIERs minimum required assets among other restrictions.	
 
18

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

 	  	2020	 	 	2019	 	
 	  	3Q	 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Paid claims	  			 	  				 				 				 				 				 				 				 				
Primary	  			 	  				 				 				 				 				 				 				 				
Direct	  	$	8	 	  	$	18	 	 	$	20	 	 	$	46	 	 	$	22	 	 	$	28	 	 	$	24	 	 	$	30	 	 	$	104	 	
Assumed(1)	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Ceded	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Loss adjustment expenses	  	 	1	 	  	 	1	 	 	 	2	 	 	 	4	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	7	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	  	 	9	 	  	 	19	 	 	 	22	 	 	 	50	 	 	 	24	 	 	 	29	 	 	 	26	 	 	 	32	 	 	 	111	 	
Pool	  	 	1	 	  	 	—  	 	 	 	—  	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	2	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Paid Claims	  	$	10	 	  	$	19	 	 	$	22	 	 	$	51	 	 	$	25	 	 	$	30	 	 	$	26	 	 	$	32	 	 	$	113	 	

Average Paid Claim (in thousands)	  	$	55.6	 	  	$	47.1	 	 	$	45.0	 	 				 	$	39.2	 	 	$	44.2	 	 	$	45.4	 	 	$	49.0	 	 				
	 									
Average Reserve Per Delinquency (in thousands)(2)	  	$	8.8	 	  	$	7.1	 	 	$	13.1	 	 				 	$	12.5	 	 	$	13.8	 	 	$	14.7	 	 	$	15.5	 	 				
	 									
Reserves:	  			 	  				 				 				 				 				 				 				 				
Primary direct case	  	$	436	 	  	$	379	 	 	$	202	 	 				 	$	205	 	 	$	217	 	 	$	223	 	 	$	247	 	 				
Assumed(1)	  	 	1	 	  	 	1	 	 	 	1	 	 				 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 				
All other(3)	  	 	37	 	  	 	59	 	 	 	27	 	 				 	 	27	 	 	 	29	 	 	 	30	 	 	 	32	 	 				
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Reserves	  	$	474	 	  	$	439	 	 	$	230	 	 				 	$	233	 	 	$	247	 	 	$	254	 	 	$	280	 	 				

Beginning Reserves	  	$	439	 	  	$	230	 	 	$	233	 	 	$	233	 	 	$	247	 	 	$	254	 	 	$	280	 	 	$	296	 	 	$	296	 	
Paid claims	  	 	(10	) 	  	 	(19	) 	 	 	(22	) 	 	 	(51	) 	 	 	(25	) 	 	 	(30	) 	 	 	(26	) 	 	 	(32	) 	 	 	(113	) 	
Increase (decrease) in reserves	  	 	45	 	  	 	228	 	 	 	19	 	 	 	292	 	 	 	11	 	 	 	23	 	 	 	—  	 	 	 	16	 	 	 	50	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending Reserves	  	$	474	 	  	$	439	 	 	$	230	 	 	$	474	 	 	$	233	 	 	$	247	 	 	$	254	 	 	$	280	 	 	$	233	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss Ratio(4)	  	 	18	% 	  	 	94	% 	 	 	8	% 	 	 	41	% 	 	 	4	% 	 	 	11	% 	 	 	-	% 	 	 	8	% 	 	 	6	% 	
 
The	loss ratio included above was calculated using whole dollars and may be different than the ratio calculated using the rounded numbers included herein.	

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

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

 	  	2020	 	 	2019	 		
 	  	3Q	 	  	      2Q      	 	 	1Q	 	 	Total	 	 	      4Q      	 	 	      3Q      	 	 	      2Q      	 	 	      1Q      	 	 	Total	 		
Beginning Number of Primary Delinquencies	  	 	53,587	 	  	 	15,417	 	 	 	16,392	 	 	 	16,392	 	 	 	15,758	 	 	 	15,227	 	 	 	15,934	 	 	 	16,860	 	 	 	16,860	 		
New delinquencies	  	 	16,664	 	  	 	48,373	 	 	 	8,114	 	 	 	73,151	 	 	 	8,658	 	 	 	8,547	 	 	 	7,606	 	 	 	8,424	 	 	 	33,235	 		
Delinquency cures	  	 	(20,404	) 	  	 	(9,795	) 	 	 	(8,649	) 	 	 	(38,848	) 	 	 	(7,464	) 	 	 	(7,382	) 	 	 	(7,791	) 	 	 	(8,726	) 	 	 	(31,363	) 		
Paid claims	  	 	(152	) 	  	 	(404	) 	 	 	(440	) 	 	 	(996	) 	 	 	(558	) 	 	 	(631	) 	 	 	(515	) 	 	 	(619	) 	 	 	(2,323	) 		
Rescissions and claim denials	  	 	(3	) 	  	 	(4	) 	 	 	—  	 	 	 	(7	) 	 	 	(2	) 	 	 	(3	) 	 	 	(7	) 	 	 	(5	) 	 	 	(17	) 		
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Ending Number of Primary Delinquencies	  	 	49,692	 	  	 	53,587	 	 	 	15,417	 	 	 	49,692	 	 	 	16,392	 	 	 	15,758	 	 	 	15,227	 	 	 	15,934	 	 	 	16,392	 		
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Composition of Cures	  			 	  				 				 				 				 				 				 				 					
Reported delinquent and cured-intraquarter	  	 	1,939	 	  	 	3,992	 	 	 	2,236	 	 				 	 	1,700	 	 	 	1,818	 	 	 	1,621	 	 	 	2,339	 	 					
Number of missed payments delinquent prior to cure:	  			 	  				 				 				 				 				 				 				 					
3 payments or less	  	 	13,022	 	  	 	4,522	 	 	 	4,850	 	 				 	 	4,390	 	 	 	4,110	 	 	 	4,510	 	 	 	4,786	 	 					
4 - 11 payments	  	 	5,239	 	  	 	1,122	 	 	 	1,389	 	 				 	 	1,167	 	 	 	1,215	 	 	 	1,417	 	 	 	1,323	 	 					
12 payments or more	  	 	204	 	  	 	159	 	 	 	174	 	 				 	 	207	 	 	 	239	 	 	 	243	 	 	 	278	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	 	20,404	 	  	 	9,795	 	 	 	8,649	 	 				 	 	7,464	 	 	 	7,382	 	 	 	7,791	 	 	 	8,726	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Primary Delinquencies by Missed Payment Status	  			 	  				 				 				 				 				 				 				 					
3 payments or less	  	 	13,904	 	  	 	43,158	 	 	 	7,650	 	 				 	 	8,618	 	 	 	8,294	 	 	 	7,704	 	 	 	7,768	 	 					
4 - 11 payments	  	 	32,366	 	  	 	7,448	 	 	 	4,909	 	 				 	 	4,876	 	 	 	4,360	 	 	 	4,197	 	 	 	4,700	 	 					
12 payments or more	  	 	3,422	 	  	 	2,981	 	 	 	2,858	 	 				 	 	2,898	 	 	 	3,104	 	 	 	3,326	 	 	 	3,466	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Primary Delinquencies	  	 	49,692	 	  	 	53,587	 	 	 	15,417	 	 				 	 	16,392	 	 	 	15,758	 	 	 	15,227	 	 	 	15,934	 	 					

									
 	  	September 30, 2020	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Primary Delinquencies and Percentage	
Reserved by Payment Status	  	Direct Case
Reserves(1)	 	  	Risk
In-Force	 	 	Reserves as % of
Risk In-Force	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
3 payments or less in default	  	$	49	 	  	$	763	 	 	 	6	% 	 				 				 				 				 				 					
4 - 11 payments in default	  	 	264	 	  	 	2,014	 	 	 	13	% 	 				 				 				 				 				 					
12 payments or more in default	  	 	123	 	  	 	168	 	 	 	73	% 	 				 				 				 				 				 					
	  	 	 	 	  	 	 	 	 				 				 				 				 				 				 					
Total	  	$	436	 	  	$	2,945	 	 	 	15	% 	 				 				 				 				 				 					

 	  	December 31, 2019	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Primary Delinquencies and Percentage	
Reserved by Payment Status	  	Direct Case
Reserves(1)	 	  	Risk In-
Force	 	 	Reserves as % of
Risk In-Force	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
3 payments or less in default	  	$	28	 	  	$	386	 	 	 	7	% 	 				 				 				 				 				 					
4 - 11 payments in default	  	 	78	 	  	 	225	 	 	 	35	% 	 				 				 				 				 				 					
12 payments or more in default	  	 	99	 	  	 	146	 	 	 	68	% 	 				 				 				 				 				 					
	  	 	 	 	  	 	 	 	 				 				 				 				 				 				 					
Total	  	$	205	 	  	$	757	 	 	 	27	% 	 				 				 				 				 				 					

(1) 	Direct primary case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.	
 
20

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

 	  	2020	 	 	2019	 	
 	  	3Q	 	  	2Q	 	 	1Q	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	
Primary Loans	  			 	  				 				 				 				 				 				
Primary loans in-force	  	 	913,974	 	  	 	896,232	 	 	 	868,111	 	 	 	851,070	 	 	 	833,215	 	 	 	808,428	 	 	 	782,471	 	
Primary delinquent loans	  	 	49,692	 	  	 	53,587	 	 	 	15,417	 	 	 	16,392	 	 	 	15,758	 	 	 	15,227	 	 	 	15,934	 	
Primary delinquency rate	  	 	5.44	% 	  	 	5.98	% 	 	 	1.78	% 	 	 	1.93	% 	 	 	1.89	% 	 	 	1.88	% 	 	 	2.04	% 	
	 							
A minus and sub-prime loans in-force	  	 	10,984	 	  	 	11,610	 	 	 	12,141	 	 	 	12,688	 	 	 	13,345	 	 	 	14,074	 	 	 	14,599	 	
A minus and sub-prime delinquent loans	  	 	2,342	 	  	 	2,453	 	 	 	2,061	 	 	 	2,266	 	 	 	2,320	 	 	 	2,352	 	 	 	2,512	 	
A minus and sub-prime delinquency rate	  	 	21.32	% 	  	 	21.13	% 	 	 	16.98	% 	 	 	17.86	% 	 	 	17.38	% 	 	 	16.71	% 	 	 	17.21	% 	
	 							
Pool Loans	  			 	  				 				 				 				 				 				
Pool loans in-force	  	 	11,888	 	  	 	12,339	 	 	 	12,872	 	 	 	13,266	 	 	 	13,738	 	 	 	14,261	 	 	 	14,799	 	
Pool delinquent loans	  	 	434	 	  	 	458	 	 	 	363	 	 	 	382	 	 	 	415	 	 	 	432	 	 	 	459	 	
Pool delinquency rate	  	 	3.65	% 	  	 	3.71	% 	 	 	2.82	% 	 	 	2.88	% 	 	 	3.02	% 	 	 	3.03	% 	 	 	3.10	% 	
	 							
Primary Risk In-Force by Credit Quality	  			 	  				 				 				 				 				 				
Over 760	  	 	38	% 	  	 	38	% 	 	 	38	% 	 	 	38	% 	 	 	38	% 	 	 	38	% 	 	 	38	% 	
740—759	  	 	16	 	  	 	17	 	 	 	17	 	 	 	17	 	 	 	16	 	 	 	16	 	 	 	16	 	
720—739	  	 	15	 	  	 	15	 	 	 	15	 	 	 	14	 	 	 	14	 	 	 	14	 	 	 	14	 	
700—719	  	 	12	 	  	 	12	 	 	 	12	 	 	 	12	 	 	 	12	 	 	 	12	 	 	 	12	 	
680—699	  	 	9	 	  	 	9	 	 	 	9	 	 	 	9	 	 	 	9	 	 	 	9	 	 	 	9	 	
660—679(1)	  	 	5	 	  	 	4	 	 	 	4	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	
640—659	  	 	3	 	  	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	
620—639	  	 	1	 	  	 	1	 	 	 	1	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	
<620	  	 	1	 	  	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	  	 	100	% 	  	 	100	% 	 	 	100	% 	 	 	100	% 	 	 	100	% 	 	 	100	% 	 	 	100	% 	

 

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

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

 	  	September 30, 2020	 		
	Policy Year	  	Average
Rate(1)	 	 	% of Total
Reserves(2)	 	 	Primary Insurance
In-Force	 	  	% of Total	 	 	Primary Risk
In-Force	 	  	% of Total	 	 	Delinquency
Rate	 	
2004 and prior	  	 	6.08	% 	 	 	3.7	% 	 	$	870	 	  	 	0.4	% 	 	$	212	 	  	 	0.4	% 	 	 	16.85	% 		
2005 to 2008	  	 	5.43	% 	 	 	27.8	 	 	 	12,940	 	  	 	6.1	 	 	 	2,932	 	  	 	5.7	 	 	 	13.22	% 		
2009 to 2012	  	 	4.20	% 	 	 	1.3	 	 	 	1,858	 	  	 	0.9	 	 	 	404	 	  	 	0.8	 	 	 	5.51	% 		
2013	  	 	4.13	% 	 	 	1.3	 	 	 	2,567	 	  	 	1.2	 	 	 	613	 	  	 	1.2	 	 	 	4.87	% 		
2014	  	 	4.45	% 	 	 	3.1	 	 	 	4,944	 	  	 	2.3	 	 	 	1,174	 	  	 	2.3	 	 	 	5.80	% 		
2015	  	 	4.15	% 	 	 	5.3	 	 	 	10,336	 	  	 	4.9	 	 	 	2,465	 	  	 	4.8	 	 	 	5.56	% 		
2016	  	 	3.88	% 	 	 	9.2	 	 	 	19,715	 	  	 	9.3	 	 	 	4,727	 	  	 	9.2	 	 	 	5.53	% 		
2017	  	 	4.24	% 	 	 	11.4	 	 	 	20,541	 	  	 	9.7	 	 	 	4,938	 	  	 	9.6	 	 	 	6.59	% 		
2018	  	 	4.75	% 	 	 	13.4	 	 	 	21,282	 	  	 	10.0	 	 	 	5,119	 	  	 	9.9	 	 	 	7.73	% 		
2019	  	 	4.20	% 	 	 	18.2	 	 	 	46,638	 	  	 	21.9	 	 	 	11,346	 	  	 	22.1	 	 	 	5.79	% 		
2020	  	 	3.42	% 	 	 	5.3	 	 	 	70,745	 	  	 	33.3	 	 	 	17,463	 	  	 	34.0	 	 	 	1.24	% 		
	  				 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 					
Total	  	 	4.06	% 	 	 	100.0	% 	 	$	212,436	 	  	 	100.0	% 	 	$	51,393	 	  	 	100.0	% 	 	 	5.44	% 		

 	  	September 30, 2020	 	 	June 30, 2020	 	 	September 30, 2019	 	 	 	 		
 	  	Primary Risk
In-Force	 	 	Primary
Delinquency
Rate	 	 	Primary Risk
In-Force	 	  	Primary
Delinquency
Rate	 	 	Primary Risk
In-Force	 	  	Primary
Delinquency
Rate	 	 	 	 		
Lender concentration (by original applicant)	  	$	51,393	 	 	 	5.44	% 	 	$	49,868	 	  	 	5.98	% 	 	$	44,903	 	  	 	1.89	% 	 					
Top 10 lenders	  	$	15,683	 	 	 	6.11	% 	 	$	15,803	 	  	 	6.62	% 	 	$	13,474	 	  	 	2.03	% 	 					
Top 20 lenders	  	$	20,263	 	 	 	6.03	% 	 	$	20,264	 	  	 	6.52	% 	 	$	17,647	 	  	 	1.87	% 	 					
Loan-to-value ratio	  				 				 				  				 				  				 					
95.01% and above	  	$	9,196	 	 	 	6.96	% 	 	$	8,789	 	  	 	7.43	% 	 	$	8,238	 	  	 	3.19	% 	 					
90.01% to 95.00%	  	 	26,403	 	 	 	5.37	% 	 	 	25,686	 	  	 	5.85	% 	 	 	23,309	 	  	 	1.52	% 	 					
80.01% to 90.00%	  	 	15,772	 	 	 	4.58	% 	 	 	15,370	 	  	 	5.26	% 	 	 	13,331	 	  	 	1.53	% 	 					
80.00% and below	  	 	22	 	 	 	5.81	% 	 	 	23	 	  	 	5.91	% 	 	 	25	 	  	 	2.36	% 	 					
	  	 	 	 	 				 	 	 	 	  				 	 	 	 	  				 					
Total	  	$	51,393	 	 	 	5.44	% 	 	$	49,868	 	  	 	5.98	% 	 	$	44,903	 	  	 	1.89	% 	 					
	  	 	 	 	 				 	 	 	 	  				 	 	 	 	  				 					
Loan grade	  				 				 				  				 				  				 					
Prime	  	$	51,000	 	 	 	5.24	% 	 	$	49,454	 	  	 	5.78	% 	 	$	44,430	 	  	 	1.64	% 	 					
A minus and sub-prime	  	 	393	 	 	 	21.32	% 	 	 	414	 	  	 	21.13	% 	 	 	473	 	  	 	17.38	% 	 					
	  	 	 	 	 				 	 	 	 	  				 	 	 	 	  				 					
Total	  	$	51,393	 	 	 	5.44	% 	 	$	49,868	 	  	 	5.98	% 	 	$	44,903	 	  	 	1.89	% 	 					

(1) 	Average Annual Mortgage Interest Rate.    	
(2) 	Total reserves were $474 million as of September 30, 2020.         	
 
22

 
Australia Mortgage Insurance Segment

 
 
23

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

 	  	2020	 	 	2019	 	
 	  	3Q	 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				 				
Premiums	  	$	71	 	  	$	62	 	 	$	69	 	 	$	202	 	 	$	72	 	 	$	77	 	 	$	80	 	 	$	83	 	 	$	312	 	
Net investment income	  	 	7	 	  	 	8	 	 	 	10	 	 	 	25	 	 	 	11	 	 	 	13	 	 	 	15	 	 	 	16	 	 	 	55	 	
Net investment gains (losses)	  	 	24	 	  	 	66	 	 	 	(53	) 	 	 	37	 	 	 	19	 	 	 	(9	) 	 	 	1	 	 	 	12	 	 	 	23	 	
Policy fees and other income	  	 	—  	 	  	 	—  	 	 	 	1	 	 	 	1	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	102	 	  	 	136	 	 	 	27	 	 	 	265	 	 	 	102	 	 	 	82	 	 	 	96	 	 	 	110	 	 	 	390	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	26	 	  	 	39	 	 	 	24	 	 	 	89	 	 	 	22	 	 	 	28	 	 	 	26	 	 	 	28	 	 	 	104	 	
Acquisition and operating expenses, net of deferrals	  	 	19	 	  	 	18	 	 	 	17	 	 	 	54	 	 	 	18	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	69	 	
Amortization of deferred acquisition costs and intangibles	  	 	7	 	  	 	6	 	 	 	8	 	 	 	21	 	 	 	6	 	 	 	9	 	 	 	9	 	 	 	9	 	 	 	33	 	
Goodwill impairment	  	 	—  	 	  	 	5	 	 	 	—  	 	 	 	5	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Interest expense	  	 	2	 	  	 	2	 	 	 	1	 	 	 	5	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	8	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	54	 	  	 	70	 	 	 	50	 	 	 	174	 	 	 	48	 	 	 	56	 	 	 	54	 	 	 	56	 	 	 	214	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	48	 	  	 	66	 	 	 	(23	) 	 	 	91	 	 	 	54	 	 	 	26	 	 	 	42	 	 	 	54	 	 	 	176	 	
Provision (benefit) for income taxes	  	 	15	 	  	 	20	 	 	 	(7	) 	 	 	28	 	 	 	16	 	 	 	8	 	 	 	13	 	 	 	16	 	 	 	53	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	33	 	  	 	46	 	 	 	(16	) 	 	 	63	 	 	 	38	 	 	 	18	 	 	 	29	 	 	 	38	 	 	 	123	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	18	 	  	 	23	 	 	 	(6	) 	 	 	35	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	 	15	 	  	 	23	 	 	 	(10	) 	 	 	28	 	 	 	19	 	 	 	8	 	 	 	14	 	 	 	18	 	 	 	59	 	
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:	  			 	  				 				 				 				 				 				 				 				
Net investment (gains) losses, net(1)	  	 	(12	) 	  	 	(34	) 	 	 	27	 	 	 	(19	) 	 	 	(10	) 	 	 	5	 	 	 	(1	) 	 	 	(6	) 	 	 	(12	) 	
Goodwill impairment, net(2)	  	 	—  	 	  	 	3	 	 	 	—  	 	 	 	3	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Taxes on adjustments	  	 	4	 	  	 	9	 	 	 	(8	) 	 	 	5	 	 	 	3	 	 	 	(1	) 	 	 	—  	 	 	 	2	 	 	 	4	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME(3)	  	$	7	 	  	$	1	 	 	$	9	 	 	$	17	 	 	$	12	 	 	$	12	 	 	$	13	 	 	$	14	 	 	$	51	 	

SALES:	  				  				 				 				 				 				 				 				 				
New Insurance Written (NIW)	  				  				 				 				 				 				 				 				 				
Flow	  	$	5,500	 	  	$	4,400	 	 	$	4,100	 	 	$	14,000	 	 	$	4,900	 	 	$	4,600	 	 	$	3,700	 	 	$	3,400	 	 	$	16,600	 	
Bulk	  	 	100	 	  	 	100	 	 	 	200	 	 	 	400	 	 	 	400	 	 	 	—  	 	 	 	1,200	 	 	 	500	 	 	 	2,100	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Australia NIW(4),(5)	  	$	5,600	 	  	$	4,500	 	 	$	4,300	 	 	$	14,400	 	 	$	5,300	 	 	$	4,600	 	 	$	4,900	 	 	$	3,900	 	 	$	18,700	 	

 
(1)  Net investment (gains) losses were adjusted for the portion of net investment gains (losses) attributable to noncontrolling interests as reconciled below:	   	
										
Net investment (gains) losses, gross	  	$	(24	) 	  	$	(66	) 	 	$	53	 	 	$	(37	) 	 	$	(19	) 	 	$	9	 	 	$	(1	) 	 	$	(12	) 	 	$	(23	) 	
Adjustment for net investment gains (losses) attributable to noncontrolling interests	  	 	12	 	  	 	32	 	 	 	(26	) 	 	 	18	 	 	 	9	 	 	 	(4	) 	 	 	—  	 	 	 	6	 	 	 	11	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment (gains) losses, net	  	$	(12	) 	  	$	(34	) 	 	$	27	 	 	$	(19	) 	 	$	(10	) 	 	$	5	 	 	$	(1	) 	 	$	(6	) 	 	$	(12	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(2) 	For the three months ended June 30, 2020, goodwill impairment was adjusted by $2 million for the portion attributable to noncontrolling interests.	
(3) 	Adjusted operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $7 million and $18 million for the three and nine months ended September 30, 2020, respectively.	
(4) 	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $5,500 million and $15,000 million for the three and nine months ended September 30, 2020, respectively.	
(5) 	The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The new insurance written associated with these arrangements is excluded from these metrics.	
 
24

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

 	  	2020	 	 	2019	 		
 	  	3Q	 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 		
Net Premiums Written	  	$	91	 	  	$	70	 	 	$	62	 	 	$	 223	 	 	$	92	 	 	$	70	 	 	$	58	 	 	$	52	 	 	$	 272	 		
Loss Ratio(1)	  	 	37	% 	  	 	63	% 	 	 	34	% 	 	 	44	% 	 	 	30	% 	 	 	36	% 	 	 	34	% 	 	 	34	% 	 	 	33	% 		
Expense Ratio (Net Earned Premiums)(2)	  	 	37	% 	  	 	47	% 	 	 	36	% 	 	 	40	% 	 	 	34	% 	 	 	34	% 	 	 	33	% 	 	 	31	% 	 	 	33	% 		
Expense Ratio (Net Premiums Written)(3)	  	 	29	% 	  	 	41	% 	 	 	40	% 	 	 	36	% 	 	 	26	% 	 	 	38	% 	 	 	44	% 	 	 	50	% 	 	 	38	% 		
Primary Insurance In-Force(4)	  	$	215,800	 	  	$	210,200	 	 	$	188,400	 	 				 	$	215,700	 	 	$	206,400	 	 	$	215,600	 	 	$	219,200	 	 					
Primary Risk In-Force(4),(5)	  			 	  				 				 				 				 				 				 				 					
Flow	  	$	69,700	 	  	$	67,700	 	 	$	60,700	 	 				 	$	69,400	 	 	$	66,400	 	 	$	69,100	 	 	$	70,600	 	 					
Bulk	  	 	5,500	 	  	 	5,500	 	 	 	5,000	 	 				 	 	5,700	 	 	 	5,500	 	 	 	6,000	 	 	 	5,700	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	$	75,200	 	  	$	73,200	 	 	$	65,700	 	 				 	$	75,100	 	 	$	71,900	 	 	$	75,100	 	 	$	76,300	 	 					

							
 	  	September 30, 2020	 	 	 	 	 	June 30, 2020	 	 	 	 	 	 	 		
	Risk In-Force by Loan-To-Value Ratio(4),(6)	  	Primary	 	  	Flow	 	 	Bulk	 	 	 	 	 	Primary	 	 	Flow	 	 	Bulk	 	 	 	 	 	 	 	
95.01% and above	  	$	9,781	 	  	$	9,781	 	 	$	—  	 	 				 	$	9,613	 	 	$	9,613	 	 	$	—  	 	 				 					
90.01% to 95.00%	  	 	21,842	 	  	 	21,831	 	 	 	11	 	 				 	 	21,066	 	 	 	21,057	 	 	 	9	 	 				 					
80.01% to 90.00%	  	 	24,435	 	  	 	24,354	 	 	 	81	 	 				 	 	23,481	 	 	 	23,403	 	 	 	78	 	 				 					
80.00% and below	  	 	19,153	 	  	 	13,729	 	 	 	5,424	 	 				 	 	19,060	 	 	 	13,675	 	 	 	5,385	 	 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 				 					
Total	  	$	75,211	 	  	$	69,695	 	 	$	5,516	 	 				 	$	73,220	 	 	$	67,748	 	 	$	5,472	 	 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 				 					
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 $168 million, $162 million, $143 million, $162 million, $152 million, $157 million and $157 million as of September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, respectively.	
(5) 	The business currently provides 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Australia has computed an “effective risk in-force” amount which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents the highest expected average per-claim payment for any one underwriting year over the life of the business. This factor was 35% for all periods presented. Australia also has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor.	
(6) 	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.	
 
25

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

	Primary Insurance(1)	  	September 30, 2020	 	 	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 2019	 	 	September 30, 2019	 	 	 	 	
Insured loans in-force	  	 	1,193,072	 	 	 	1,236,657	 	 	 	1,284,120	 	 	 	1,290,216	 	 	 	1,293,961	 	 					
Insured delinquent loans	  	 	7,422	 	 	 	7,614	 	 	 	7,274	 	 	 	7,221	 	 	 	7,713	 	 					
Insured delinquency rate	  	 	0.62	% 	 	 	0.62	% 	 	 	0.57	% 	 	 	0.56	% 	 	 	0.60	% 	 					
								
Flow loans in-force	  	 	1,096,679	 	 	 	1,137,784	 	 	 	1,183,889	 	 	 	1,189,019	 	 	 	1,192,282	 	 					
Flow delinquent loans	  	 	7,171	 	 	 	7,380	 	 	 	7,055	 	 	 	7,003	 	 	 	7,469	 	 					
Flow delinquency rate	  	 	0.65	% 	 	 	0.65	% 	 	 	0.60	% 	 	 	0.59	% 	 	 	0.63	% 	 					
								
Bulk loans in-force	  	 	96,393	 	 	 	98,873	 	 	 	100,231	 	 	 	101,197	 	 	 	101,679	 	 					
Bulk delinquent loans	  	 	251	 	 	 	234	 	 	 	219	 	 	 	218	 	 	 	244	 	 					
Bulk delinquency rate	  	 	0.26	% 	 	 	0.24	% 	 	 	0.22	% 	 	 	0.22	% 	 	 	0.24	% 	 					
								
	Loss Metrics	  	September 30, 2020	 	 	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 2019	 	 	September 30, 2019	 	 	 	 	
Beginning Reserves	  	$	226	 	 	$	184	 	 	$	208	 	 	$	204	 	 	$	209	 	 					
Paid claims(2)	  	 	(23	) 	 	 	(22	) 	 	 	(21	) 	 	 	(25	) 	 	 	(24	) 	 					
Increase in reserves	  	 	26	 	 	 	39	 	 	 	24	 	 	 	22	 	 	 	27	 	 					
Impact of changes in foreign exchange rates	  	 	9	 	 	 	25	 	 	 	(27	) 	 	 	7	 	 	 	(8	) 	 					
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Ending Reserves	  	$	238	 	 	$	226	 	 	$	184	 	 	$	208	 	 	$	204	 	 					

 	  	September 30, 2020	 	 	June 30, 2020	 	 	September 30, 2019	 		
	State and Territory(1)	  	% of Primary
Risk In-Force	 	 	Primary
Delinquency Rate	 	 	% of Primary
    Risk In-Force    	 	 	Primary
Delinquency Rate	 	 	% of Primary
Risk In-Force	 	 	Primary
Delinquency Rate	 	
New South Wales	  	 	28	% 	 	 	0.50	% 	 	 	27	% 	 	 	0.51	% 	 	 	28	% 	 	 	0.45	% 		
Queensland	  	 	23	 	 	 	0.77	% 	 	 	23	 	 	 	0.78	% 	 	 	23	 	 	 	0.80	% 		
Victoria	  	 	23	 	 	 	0.49	% 	 	 	23	 	 	 	0.46	% 	 	 	22	 	 	 	0.43	% 		
Western Australia	  	 	13	 	 	 	1.04	% 	 	 	13	 	 	 	1.06	% 	 	 	13	 	 	 	1.06	% 		
South Australia	  	 	6	 	 	 	0.69	% 	 	 	6	 	 	 	0.70	% 	 	 	6	 	 	 	0.69	% 		
Australian Capital Territory	  	 	3	 	 	 	0.25	% 	 	 	3	 	 	 	0.27	% 	 	 	3	 	 	 	0.26	% 		
Tasmania	  	 	2	 	 	 	0.24	% 	 	 	2	 	 	 	0.27	% 	 	 	2	 	 	 	0.31	% 		
New Zealand	  	 	1	 	 	 	0.05	% 	 	 	2	 	 	 	0.03	% 	 	 	2	 	 	 	0.02	% 		
Northern Territory	  	 	1	 	 	 	0.92	% 	 	 	1	 	 	 	0.87	% 	 	 	1	 	 	 	0.85	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.62	% 	 	 	100	% 	 	 	0.62	% 	 	 	100	% 	 	 	0.60	% 		

	By Policy Year(1)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
2011 and prior	  	 	41	% 	 	 	0.59	% 	 	 	44	% 	 	 	0.55	% 	 	 	47	% 	 	 	            0.53	% 		
2012	  	 	5	 	 	 	0.99	% 	 	 	5	 	 	 	1.01	% 	 	 	6	 	 	 	1.04	% 		
2013	  	 	6	 	 	 	1.06	% 	 	 	6	 	 	 	1.12	% 	 	 	6	 	 	 	1.13	% 		
2014	  	 	7	 	 	 	1.08	% 	 	 	7	 	 	 	1.10	% 	 	 	8	 	 	 	1.01	% 		
2015	  	 	7	 	 	 	0.83	% 	 	 	7	 	 	 	0.89	% 	 	 	7	 	 	 	0.86	% 		
2016	  	 	6	 	 	 	0.68	% 	 	 	6	 	 	 	0.71	% 	 	 	7	 	 	 	0.60	% 		
2017	  	 	6	 	 	 	0.52	% 	 	 	6	 	 	 	0.57	% 	 	 	7	 	 	 	0.41	% 		
2018	  	 	7	 	 	 	0.41	% 	 	 	7	 	 	 	0.41	% 	 	 	7	 	 	 	0.22	% 		
2019	  	 	8	 	 	 	0.17	% 	 	 	8	 	 	 	0.10	% 	 	 	5	 	 	 	0.01	% 		
2020	  	 	7	 	 	 	0.01	% 	 	 	4	 	 	 	0.01	% 	 	 	—  	 	 	 	—  	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.62	% 	 	 	100	% 	 	 	0.62	% 	 	 	100	% 	 	 	0.60	% 		

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

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

 	  	2020	 	 	2019	 	
 	  	3Q	 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Paid Claims(1)	  			 	  				 				 				 				 				 				 				 				
Flow	  	$	33	 	  	$	35	 	 	$	31	 	 	$	99	 	 	$	37	 	 	$	35	 	 	$	28	 	 	$	30	 	 	$	130	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Paid Claims	  	$	33	 	  	$	35	 	 	$	31	 	 	$	99	 	 	$	37	 	 	$	35	 	 	$	28	 	 	$	30	 	 	$	130	 	

Average Paid Claim (in thousands)	  	$	99.4	 	  	$	97.0	 	 	$	92.7	 	 				 	$	99.4	 	 	$	97.9	 	 	$	94.1	 	 	$	94.2	 	 				
	 									
Average Reserve Per Delinquency (in thousands)	  	$	44.7	 	  	$	43.0	 	 	$	41.3	 	 				 	$	41.1	 	 	$	39.2	 	 	$	37.8	 	 	$	38.4	 	 				
	 									
Loss Metrics	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beginning Reserves	  	$	328	 	  	$	301	 	 	$	297	 	 	$	297	 	 	$	302	 	 	$	298	 	 	$	288	 	 	$	279	 	 	$	279	 	
Paid claims(1)	  	 	(33	) 	  	 	(35	) 	 	 	(31	) 	 	 	(99	) 	 	 	(37	) 	 	 	(35	) 	 	 	(28	) 	 	 	(30	) 	 	 	(130	) 	
Increase in reserves	  	 	36	 	  	 	62	 	 	 	35	 	 	 	133	 	 	 	32	 	 	 	39	 	 	 	38	 	 	 	39	 	 	 	148	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending Reserves	  	$	331	 	  	$	328	 	 	$	301	 	 	$	331	 	 	$	297	 	 	$	302	 	 	$	298	 	 	$	288	 	 	$	297	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loan Amount(2),(3)	  			 	  				 				 				 				 				 				 				 				
Over $550K	  	 	21	% 	  	 	21	% 	 	 	20	% 	 				 	 	19	% 	 	 	19	% 	 	 	19	% 	 	 	18	% 	 				
$400K to $550K	  	 	23	 	  	 	22	 	 	 	22	 	 				 	 	22	 	 	 	22	 	 	 	21	 	 	 	21	 	 				
$250K to $400K	  	 	33	 	  	 	33	 	 	 	32	 	 				 	 	33	 	 	 	33	 	 	 	33	 	 	 	34	 	 				
$100K to $250K	  	 	19	 	  	 	20	 	 	 	21	 	 				 	 	21	 	 	 	21	 	 	 	22	 	 	 	22	 	 				
$100K or Less	  	 	4	 	  	 	4	 	 	 	5	 	 				 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 				
	  	 	 	 	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total	  	 	100	% 	  	 	100	% 	 	 	100	% 	 				 	 	100	% 	 	 	100	% 	 	 	100	% 	 	 	100	% 	 				

Average Primary Loan Size (in thousands)(3)	  	$	252	 	  	$	246	 	 	$	240	 	 				 	$	238	 	 	$	236	 	 	$	235	 	 	$	233	 	 				
All amounts presented in Australian dollars.

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

U.S. Life Insurance Segment

 
28

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

 	 	2020	 	 	2019	 	
  	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	 			 	 				 				 				 				 				 				 				 				
Premiums	 	$	711	 	 	$	712	 	 	$	718	 	 	$	2,141	 	 	$	722	 	 	$	717	 	 	$	713	 	 	$	709	 	 	$	2,861	 	
Net investment income	 	 	726	 	 	 	692	 	 	 	695	 	 	 	2,113	 	 	 	705	 	 	 	722	 	 	 	724	 	 	 	701	 	 	 	2,852	 	
Net investment gains (losses)	 	 	348	 	 	 	118	 	 	 	(70	) 	 	 	396	 	 	 	23	 	 	 	11	 	 	 	(36	) 	 	 	84	 	 	 	82	 	
Policy fees and other income	 	 	152	 	 	 	142	 	 	 	144	 	 	 	438	 	 	 	153	 	 	 	152	 	 	 	187	 	 	 	151	 	 	 	643	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	1,937	 	 	 	1,664	 	 	 	1,487	 	 	 	5,088	 	 	 	1,603	 	 	 	1,602	 	 	 	1,588	 	 	 	1,645	 	 	 	6,438	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	 			 	 				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	 	 	1,221	 	 	 	1,213	 	 	 	1,297	 	 	 	3,731	 	 	 	1,307	 	 	 	1,225	 	 	 	1,211	 	 	 	1,236	 	 	 	4,979	 	
Interest credited	 	 	95	 	 	 	97	 	 	 	100	 	 	 	292	 	 	 	101	 	 	 	106	 	 	 	106	 	 	 	106	 	 	 	419	 	
Acquisition and operating expenses, net of deferrals	 	 	158	 	 	 	147	 	 	 	151	 	 	 	456	 	 	 	156	 	 	 	158	 	 	 	142	 	 	 	148	 	 	 	604	 	
Amortization of deferred acquisition costs and intangibles	 	 	87	 	 	 	83	 	 	 	87	 	 	 	257	 	 	 	150	 	 	 	89	 	 	 	67	 	 	 	66	 	 	 	372	 	
Interest expense	 	 	—  	 	 	 	—  	 	 	 	5	 	 	 	5	 	 	 	4	 	 	 	4	 	 	 	4	 	 	 	5	 	 	 	17	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expense	 	 	1,561	 	 	 	1,540	 	 	 	1,640	 	 	 	4,741	 	 	 	1,718	 	 	 	1,582	 	 	 	1,530	 	 	 	1,561	 	 	 	6,391	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	 	 	376	 	 	 	124	 	 	 	(153	) 	 	 	347	 	 	 	(115	) 	 	 	20	 	 	 	58	 	 	 	84	 	 	 	47	 	
Provision (benefit) for income taxes	 	 	87	 	 	 	33	 	 	 	(27	) 	 	 	93	 	 	 	(19	) 	 	 	10	 	 	 	19	 	 	 	24	 	 	 	34	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	 	 	289	 	 	 	91	 	 	 	(126	) 	 	 	254	 	 	 	(96	) 	 	 	10	 	 	 	39	 	 	 	60	 	 	 	13	 	
	 									
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	 			 	 				 				 				 				 				 				 				 				
Net investment (gains) losses, net(1)	 	 	(348	) 	 	 	(121	) 	 	 	67	 	 	 	(402	) 	 	 	(24	) 	 	 	(14	) 	 	 	35	 	 	 	(86	) 	 	 	(89	) 	
Losses on early extinguishment of debt	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Expenses related to restructuring	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	4	 	 	 	3	 	
Taxes on adjustments	 	 	73	 	 	 	25	 	 	 	(15	) 	 	 	83	 	 	 	5	 	 	 	3	 	 	 	(7	) 	 	 	17	 	 	 	18	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	 	$	14	 	 	$	(5	) 	 	$	(70	) 	 	$	(61	) 	 	$	(115	) 	 	$	(1	) 	 	$	66	 	 	$	(5	) 	 	$	(55	) 	

 
(1)  Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:	   	
Net investment (gains) losses, gross	 	$	(348	) 	 	$	(118	) 	 	$	70	 	 	$	(396	) 	 	$	(23	) 	 	$	(11	) 	 	$	36	 	 	$	(84	) 	 	$	(82	) 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	 	 	—  	 	 	 	(3	) 	 	 	(3	) 	 	 	(6	) 	 	 	(1	) 	 	 	(3	) 	 	 	(1	) 	 	 	(2	) 	 	 	(7	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment (gains) losses, net	 	$	(348	) 	 	$	(121	) 	 	$	67	 	 	$	(402	) 	 	$	(24	) 	 	$	(14	) 	 	$	35	 	 	$	(86	) 	 	$	(89	) 	

29

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

 	  	2020	 	 	2019	 	
 	  	3Q	 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				 				
Premiums	  	$	661	 	  	$	649	 	 	$	642	 	 	$	1,952	 	 	$	663	 	 	$	652	 	 	$	640	 	 	$	628	 	 	$	2,583	 	
Net investment income	  	 	456	 	  	 	422	 	 	 	419	 	 	 	1,297	 	 	 	424	 	 	 	432	 	 	 	428	 	 	 	406	 	 	 	1,690	 	
Net investment gains (losses)	  	 	347	 	  	 	129	 	 	 	(55	) 	 	 	421	 	 	 	19	 	 	 	28	 	 	 	(15	) 	 	 	80	 	 	 	112	 	
Policy fees and other income	  	 	2	 	  	 	—  	 	 	 	—  	 	 	 	2	 	 	 	—  	 	 	 	(2	) 	 	 	2	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	1,466	 	  	 	1,200	 	 	 	1,006	 	 	 	3,672	 	 	 	1,106	 	 	 	1,110	 	 	 	1,055	 	 	 	1,114	 	 	 	4,385	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	901	 	  	 	876	 	 	 	928	 	 	 	2,705	 	 	 	925	 	 	 	916	 	 	 	896	 	 	 	927	 	 	 	3,664	 	
Interest credited	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Acquisition and operating expenses, net of deferrals	  	 	108	 	  	 	103	 	 	 	101	 	 	 	312	 	 	 	105	 	 	 	106	 	 	 	93	 	 	 	101	 	 	 	405	 	
Amortization of deferred acquisition costs and intangibles	  	 	25	 	  	 	21	 	 	 	24	 	 	 	70	 	 	 	25	 	 	 	25	 	 	 	26	 	 	 	25	 	 	 	101	 	
Interest expense	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,034	 	  	 	1,000	 	 	 	1,053	 	 	 	3,087	 	 	 	1,055	 	 	 	1,047	 	 	 	1,015	 	 	 	1,053	 	 	 	4,170	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	432	 	  	 	200	 	 	 	(47	) 	 	 	585	 	 	 	51	 	 	 	63	 	 	 	40	 	 	 	61	 	 	 	215	 	
Provision (benefit) for income taxes	  	 	99	 	  	 	49	 	 	 	(4	) 	 	 	144	 	 	 	17	 	 	 	19	 	 	 	15	 	 	 	19	 	 	 	70	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	333	 	  	 	151	 	 	 	(43	) 	 	 	441	 	 	 	34	 	 	 	44	 	 	 	25	 	 	 	42	 	 	 	145	 	
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				 				 				 				 				 				 				 				
Net investment (gains) losses	  	 	(347	) 	  	 	(129	) 	 	 	55	 	 	 	(421	) 	 	 	(19	) 	 	 	(28	) 	 	 	15	 	 	 	(80	) 	 	 	(112	) 	
Expenses related to restructuring	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	2	 	 	 	1	 	
Taxes on adjustments	  	 	73	 	  	 	26	 	 	 	(11	) 	 	 	88	 	 	 	4	 	 	 	5	 	 	 	(2	) 	 	 	16	 	 	 	23	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	59	 	  	$	48	 	 	$	1	 	 	$	108	 	 	$	19	 	 	$	21	 	 	$	37	 	 	$	(20	) 	 	$	57	 	

RATIOS:	  				  				 				 				 				 				 				 				 				
Loss Ratio(1)	  	 	71	% 	  	 	69	% 	 	 	78	% 	 	 	73	% 	 	 	76	% 	 	 	76	% 	 	 	74	% 	 	 	81	% 	 	 	77	% 	
Gross Benefits Ratio(2)	  	 	136	% 	  	 	135	% 	 	 	145	% 	 	 	139	% 	 	 	140	% 	 	 	140	% 	 	 	140	% 	 	 	148	% 	 	 	142	% 	

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

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

 	  	2020	 	  	2019	 	
 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				  				
Premiums	  	$	50	 	  	$	63	 	  	$	76	 	  	$	189	 	  	$	59	 	  	$	65	 	  	$	73	 	  	$	81	 	  	$	278	 	
Net investment income	  	 	131	 	  	 	127	 	  	 	130	 	  	 	388	 	  	 	128	 	  	 	133	 	  	 	130	 	  	 	133	 	  	 	524	 	
Net investment gains (losses)	  	 	4	 	  	 	5	 	  	 	1	 	  	 	10	 	  	 	6	 	  	 	(2	) 	  	 	(3	) 	  	 	10	 	  	 	11	 	
Policy fees and other income	  	 	148	 	  	 	140	 	  	 	141	 	  	 	429	 	  	 	150	 	  	 	151	 	  	 	182	 	  	 	148	 	  	 	631	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	333	 	  	 	335	 	  	 	348	 	  	 	1,016	 	  	 	343	 	  	 	347	 	  	 	382	 	  	 	372	 	  	 	1,444	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	269	 	  	 	289	 	  	 	302	 	  	 	860	 	  	 	335	 	  	 	228	 	  	 	244	 	  	 	242	 	  	 	1,049	 	
Interest credited	  	 	57	 	  	 	57	 	  	 	59	 	  	 	173	 	  	 	58	 	  	 	60	 	  	 	58	 	  	 	58	 	  	 	234	 	
Acquisition and operating expenses, net of deferrals	  	 	39	 	  	 	34	 	  	 	39	 	  	 	112	 	  	 	39	 	  	 	40	 	  	 	37	 	  	 	34	 	  	 	150	 	
Amortization of deferred acquisition costs and intangibles	  	 	52	 	  	 	53	 	  	 	44	 	  	 	149	 	  	 	109	 	  	 	50	 	  	 	28	 	  	 	27	 	  	 	214	 	
Interest expense	  	 	—  	 	  	 	—  	 	  	 	5	 	  	 	5	 	  	 	4	 	  	 	4	 	  	 	4	 	  	 	5	 	  	 	17	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	417	 	  	 	433	 	  	 	449	 	  	 	1,299	 	  	 	545	 	  	 	382	 	  	 	371	 	  	 	366	 	  	 	1,664	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	(84	) 	  	 	(98	) 	  	 	(101	) 	  	 	(283	) 	  	 	(202	) 	  	 	(35	) 	  	 	11	 	  	 	6	 	  	 	(220	) 	
Provision (benefit) for income taxes	  	 	(18	) 	  	 	(21	) 	  	 	(22	) 	  	 	(61	) 	  	 	(43	) 	  	 	(8	) 	  	 	3	 	  	 	1	 	  	 	(47	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	(66	) 	  	 	(77	) 	  	 	(79	) 	  	 	(222	) 	  	 	(159	) 	  	 	(27	) 	  	 	8	 	  	 	5	 	  	 	(173	) 	
	 									
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				  				  				  				  				  				  				  				
Net investment (gains) losses	  	 	(4	) 	  	 	(5	) 	  	 	(1	) 	  	 	(10	) 	  	 	(6	) 	  	 	2	 	  	 	3	 	  	 	(10	) 	  	 	(11	) 	
Losses on early extinguishment of debt	  	 	—  	 	  	 	—  	 	  	 	4	 	  	 	4	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Expenses related to restructuring	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	1	 	  	 	1	 	
Taxes on adjustments	  	 	1	 	  	 	1	 	  	 	(1	) 	  	 	1	 	  	 	1	 	  	 	—  	 	  	 	(1	) 	  	 	2	 	  	 	2	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	(69	) 	  	$	(81	) 	  	$	(77	) 	  	$	(227	) 	  	$	(164	) 	  	$	(25	) 	  	$	10	 	  	$	(2	) 	  	$	(181	) 	

 
31

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

 	  	2020	 	  	2019	 	
 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				  				
Premiums	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Net investment income	  	 	139	 	  	 	143	 	  	 	146	 	  	 	428	 	  	 	153	 	  	 	157	 	  	 	166	 	  	 	162	 	  	 	638	 	
Net investment gains (losses)	  	 	(3	) 	  	 	(16	) 	  	 	(16	) 	  	 	(35	) 	  	 	(2	) 	  	 	(15	) 	  	 	(18	) 	  	 	(6	) 	  	 	(41	) 	
Policy fees and other income	  	 	2	 	  	 	2	 	  	 	3	 	  	 	7	 	  	 	3	 	  	 	3	 	  	 	3	 	  	 	3	 	  	 	12	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	138	 	  	 	129	 	  	 	133	 	  	 	400	 	  	 	154	 	  	 	145	 	  	 	151	 	  	 	159	 	  	 	609	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	51	 	  	 	48	 	  	 	67	 	  	 	166	 	  	 	47	 	  	 	81	 	  	 	71	 	  	 	67	 	  	 	266	 	
Interest credited	  	 	38	 	  	 	40	 	  	 	41	 	  	 	119	 	  	 	43	 	  	 	46	 	  	 	48	 	  	 	48	 	  	 	185	 	
Acquisition and operating expenses, net of deferrals	  	 	11	 	  	 	10	 	  	 	11	 	  	 	32	 	  	 	12	 	  	 	12	 	  	 	12	 	  	 	13	 	  	 	49	 	
Amortization of deferred acquisition costs and intangibles	  	 	10	 	  	 	9	 	  	 	19	 	  	 	38	 	  	 	16	 	  	 	14	 	  	 	13	 	  	 	14	 	  	 	57	 	
Interest expense	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	110	 	  	 	107	 	  	 	138	 	  	 	355	 	  	 	118	 	  	 	153	 	  	 	144	 	  	 	142	 	  	 	557	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	28	 	  	 	22	 	  	 	(5	) 	  	 	45	 	  	 	36	 	  	 	(8	) 	  	 	7	 	  	 	17	 	  	 	52	 	
Provision (benefit) for income taxes	  	 	6	 	  	 	5	 	  	 	(1	) 	  	 	10	 	  	 	7	 	  	 	(1	) 	  	 	1	 	  	 	4	 	  	 	11	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	22	 	  	 	17	 	  	 	(4	) 	  	 	35	 	  	 	29	 	  	 	(7	) 	  	 	6	 	  	 	13	 	  	 	41	 	
	 									
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				  				  				  				  				  				  				  				
Net investment (gains) losses, net(1)	  	 	3	 	  	 	13	 	  	 	13	 	  	 	29	 	  	 	1	 	  	 	12	 	  	 	17	 	  	 	4	 	  	 	34	 	
Expenses related to restructuring	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	1	 	  	 	1	 	
Taxes on adjustments	  	 	(1	) 	  	 	(2	) 	  	 	(3	) 	  	 	(6	) 	  	 	—  	 	  	 	(2	) 	  	 	(4	) 	  	 	(1	) 	  	 	(7	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME	  	$	24	 	  	$	28	 	  	$	6	 	  	$	58	 	  	$	30	 	  	$	3	 	  	$	19	 	  	$	17	 	  	$	69	 	

 
(1)  Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:	   	  				  				
Net investment (gains) losses, gross	  	$	3	 	  	$	16	 	  	$	16	 	  	$	35	 	  	$	2	 	  	$	15	 	  	$	18	 	  	$	6	 	  	$	41	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	—  	 	  	 	(3	) 	  	 	(3	) 	  	 	(6	) 	  	 	(1	) 	  	 	(3	) 	  	 	(1	) 	  	 	(2	) 	  	 	(7	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net investment (gains) losses, net	  	$	3	 	  	$	13	 	  	$	13	 	  	$	29	 	  	$	1	 	  	$	12	 	  	$	17	 	  	$	4	 	  	$	34	 	

32

 
Runoff Segment

 
 
33

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

 	  	2020	 	  	2019	 	
  	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				  				
Net investment income	  	$	55	 	  	$	54	 	  	$	49	 	  	$	158	 	  	$	45	 	  	$	48	 	  	$	47	 	  	$	47	 	  	$	187	 	
Net investment gains (losses)	  	 	15	 	  	 	4	 	  	 	(75	) 	  	 	(56	) 	  	 	(12	) 	  	 	(9	) 	  	 	(4	) 	  	 	—  	 	  	 	(25	) 	
Policy fees and other income	  	 	33	 	  	 	32	 	  	 	33	 	  	 	98	 	  	 	35	 	  	 	35	 	  	 	35	 	  	 	35	 	  	 	140	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	103	 	  	 	90	 	  	 	7	 	  	 	200	 	  	 	68	 	  	 	74	 	  	 	78	 	  	 	82	 	  	 	302	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	7	 	  	 	4	 	  	 	20	 	  	 	31	 	  	 	5	 	  	 	8	 	  	 	13	 	  	 	1	 	  	 	27	 	
Interest credited	  	 	42	 	  	 	42	 	  	 	41	 	  	 	125	 	  	 	37	 	  	 	40	 	  	 	40	 	  	 	41	 	  	 	158	 	
Acquisition and operating expenses, net of deferrals	  	 	12	 	  	 	11	 	  	 	13	 	  	 	36	 	  	 	13	 	  	 	13	 	  	 	13	 	  	 	13	 	  	 	52	 	
Amortization of deferred acquisition costs and intangibles	  	 	4	 	  	 	(1	) 	  	 	17	 	  	 	20	 	  	 	2	 	  	 	10	 	  	 	4	 	  	 	2	 	  	 	18	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	65	 	  	 	56	 	  	 	91	 	  	 	212	 	  	 	57	 	  	 	71	 	  	 	70	 	  	 	57	 	  	 	255	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	38	 	  	 	34	 	  	 	(84	) 	  	 	(12	) 	  	 	11	 	  	 	3	 	  	 	8	 	  	 	25	 	  	 	47	 	
Provision (benefit) for income taxes	  	 	8	 	  	 	6	 	  	 	(18	) 	  	 	(4	) 	  	 	2	 	  	 	—  	 	  	 	1	 	  	 	5	 	  	 	8	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	30	 	  	 	28	 	  	 	(66	) 	  	 	(8	) 	  	 	9	 	  	 	3	 	  	 	7	 	  	 	20	 	  	 	39	 	
	 									
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				  				  				  				  				  				  				  				
Net investment (gains) losses, net(1)	  	 	(14	) 	  	 	(5	) 	  	 	67	 	  	 	48	 	  	 	10	 	  	 	9	 	  	 	2	 	  	 	—  	 	  	 	21	 	
Taxes on adjustments	  	 	3	 	  	 	1	 	  	 	(14	) 	  	 	(10	) 	  	 	(2	) 	  	 	(2	) 	  	 	—  	 	  	 	—  	 	  	 	(4	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	19	 	  	$	24	 	  	$	(13	) 	  	$	30	 	  	$	17	 	  	$	10	 	  	$	9	 	  	$	20	 	  	$	56	 	

 
(1)  Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:	   	  				  				
Net investment (gains) losses, gross	  	$	(15	) 	  	$	(4	) 	  	$	75	 	  	$	56	 	  	$	12	 	  	$	9	 	  	$	4	 	  	$	—  	 	  	$	25	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	1	 	  	 	(1	) 	  	 	(8	) 	  	 	(8	) 	  	 	(2	) 	  	 	—  	 	  	 	(2	) 	  	 	—  	 	  	 	(4	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net investment (gains) losses, net	  	$	(14	) 	  	$	(5	) 	  	$	67	 	  	$	48	 	  	$	10	 	  	$	9	 	  	$	2	 	  	$	—  	 	  	$	21	 	

34

 
Corporate and Other

 
 
35

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

 	  	2020	 	 	2019	 	
  	  	3Q	 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				 				
Premiums	  	$	1	 	  	$	2	 	 	$	2	 	 	$	5	 	 	$	2	 	 	$	2	 	 	$	2	 	 	$	2	 	 	$	8	 	
Net investment income	  	 	5	 	  	 	1	 	 	 	6	 	 	 	12	 	 	 	3	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	9	 	
Net investment gains (losses)	  	 	(10	) 	  	 	(28	) 	 	 	46	 	 	 	8	 	 	 	(8	) 	 	 	5	 	 	 	(7	) 	 	 	(21	) 	 	 	(31	) 	
Policy fees and other income	  	 	(2	) 	  	 	(1	) 	 	 	1	 	 	 	(2	) 	 	 	(1	) 	 	 	2	 	 	 	—  	 	 	 	1	 	 	 	2	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	(6	) 	  	 	(26	) 	 	 	55	 	 	 	23	 	 	 	(4	) 	 	 	11	 	 	 	(3	) 	 	 	(16	) 	 	 	(12	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	—  	 	  	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	—  	 	 	 	1	 	 	 	1	 	 	 	3	 	
Acquisition and operating expenses, net of deferrals	  	 	6	 	  	 	—  	 	 	 	18	 	 	 	24	 	 	 	12	 	 	 	8	 	 	 	13	 	 	 	13	 	 	 	46	 	
Amortization of deferred acquisition costs and intangibles	  	 	—  	 	  	 	1	 	 	 	—  	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	3	 	
Interest expense	  	 	41	 	  	 	42	 	 	 	46	 	 	 	129	 	 	 	54	 	 	 	53	 	 	 	54	 	 	 	53	 	 	 	214	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	47	 	  	 	45	 	 	 	65	 	 	 	157	 	 	 	69	 	 	 	62	 	 	 	68	 	 	 	67	 	 	 	266	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	(53	) 	  	 	(71	) 	 	 	(10	) 	 	 	(134	) 	 	 	(73	) 	 	 	(51	) 	 	 	(71	) 	 	 	(83	) 	 	 	(278	) 	
Provision (benefit) for income taxes	  	 	3	 	  	 	(12	) 	 	 	2	 	 	 	(7	) 	 	 	(16	) 	 	 	(21	) 	 	 	(7	) 	 	 	(9	) 	 	 	(53	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LOSS FROM CONTINUING OPERATIONS	  	 	(56	) 	  	 	(59	) 	 	 	(12	) 	 	 	(127	) 	 	 	(57	) 	 	 	(30	) 	 	 	(64	) 	 	 	(74	) 	 	 	(225	) 	
	 									
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:	  			 	  				 				 				 				 				 				 				 				
Net investment (gains) losses	  	 	10	 	  	 	28	 	 	 	(46	) 	 	 	(8	) 	 	 	8	 	 	 	(5	) 	 	 	7	 	 	 	21	 	 	 	31	 	
(Gains) losses on early extinguishment of debt	  	 	—  	 	  	 	(3	) 	 	 	8	 	 	 	5	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Expenses related to restructuring	  	 	—  	 	  	 	1	 	 	 	1	 	 	 	2	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	1	 	
Taxes on adjustments	  	 	(3	) 	  	 	(5	) 	 	 	8	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	(1	) 	 	 	(5	) 	 	 	(7	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING LOSS	  	$	(49	) 	  	$	(38	) 	 	$	(41	) 	 	$	(128	) 	 	$	(50	) 	 	$	(35	) 	 	$	(57	) 	 	$	(58	) 	 	$	(200	) 	

 

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

 
Additional Financial Data

 
 
37

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

 	  	September 30, 2020	 	  	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 2019	 	 	September 30, 2019	 		
 	  	Carrying
Amount	 	  	% of
Total	 	  	Carrying
Amount	 	  	% of
Total	 	 	Carrying
Amount	 	  	% of
Total	 	 	Carrying
Amount	 	  	% of
Total	 	 	Carrying
Amount	 	  	% of
Total	 		
	Composition of Investment Portfolio	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
Fixed maturity securities:	  				  			 	  				  				 				  				 				  				 				  					
Investment grade:	  				  			 	  				  				 				  				 				  				 				  					
Public fixed maturity securities(1)	  	$	35,637	 	  	 	44	% 	  	$	35,802	 	  	 	45	% 	 	$	33,056	 	  	 	46	% 	 	$	33,684	 	  	 	45	% 	 	$	34,280	 	  	 	46	% 		
Private fixed maturity securities	  	 	14,444	 	  	 	18	 	  	 	13,952	 	  	 	18	 	 	 	12,736	 	  	 	17	 	 	 	13,384	 	  	 	18	 	 	 	13,411	 	  	 	18	 		
Residential mortgage-backed securities(2)	  	 	2,042	 	  	 	3	 	  	 	2,151	 	  	 	3	 	 	 	2,243	 	  	 	3	 	 	 	2,232	 	  	 	3	 	 	 	2,335	 	  	 	3	 		
Commercial mortgage-backed securities	  	 	2,957	 	  	 	4	 	  	 	2,952	 	  	 	4	 	 	 	2,963	 	  	 	4	 	 	 	3,006	 	  	 	4	 	 	 	3,051	 	  	 	4	 		
Other asset-backed securities	  	 	3,241	 	  	 	4	 	  	 	2,921	 	  	 	4	 	 	 	3,061	 	  	 	4	 	 	 	3,257	 	  	 	4	 	 	 	3,337	 	  	 	5	 		
State and political subdivisions(1)	  	 	3,115	 	  	 	4	 	  	 	2,998	 	  	 	4	 	 	 	2,864	 	  	 	4	 	 	 	2,747	 	  	 	4	 	 	 	2,729	 	  	 	4	 		
Non-investment grade fixed maturity securities	  	 	2,980	 	  	 	4	 	  	 	2,768	 	  	 	4	 	 	 	2,128	 	  	 	3	 	 	 	2,029	 	  	 	3	 	 	 	2,090	 	  	 	3	 		
Equity securities:	  				  			 	  				  				 				  				 				  				 				  					
Common stocks and mutual funds	  	 	529	 	  	 	1	 	  	 	104	 	  	 	—  	 	 	 	91	 	  	 	—  	 	 	 	105	 	  	 	—  	 	 	 	107	 	  	 	—  	 		
Preferred stocks	  	 	100	 	  	 	—  	 	  	 	102	 	  	 	—  	 	 	 	97	 	  	 	—  	 	 	 	134	 	  	 	—  	 	 	 	132	 	  	 	—  	 		
Commercial mortgage loans, net	  	 	6,880	 	  	 	8	 	  	 	6,917	 	  	 	9	 	 	 	6,915	 	  	 	10	 	 	 	6,963	 	  	 	9	 	 	 	7,033	 	  	 	10	 		
Policy loans	  	 	2,153	 	  	 	3	 	  	 	2,182	 	  	 	3	 	 	 	2,052	 	  	 	3	 	 	 	2,058	 	  	 	3	 	 	 	2,069	 	  	 	3	 		
Cash, cash equivalents, restricted cash and short-term investments	  	 	3,054	 	  	 	4	 	  	 	2,809	 	  	 	3	 	 	 	2,696	 	  	 	3	 	 	 	3,601	 	  	 	5	 	 	 	1,839	 	  	 	2	 		
Securities lending	  	 	75	 	  	 	—  	 	  	 	59	 	  	 	—  	 	 	 	58	 	  	 	—  	 	 	 	51	 	  	 	—  	 	 	 	62	 	  	 	—  	 		
Other invested assets:	 	Limited partnerships	  	 	844	 	  	 	1	 	  	 	764	 	  	 	1	 	 	 	671	 	  	 	1	 	 	 	634	 	  	 	1	 	 	 	565	 	  	 	1	 		
	 	Derivatives:	  				  			 	  				  				 				  				 				  				 				  					
	 	Interest rate swaps	  	 	708	 	  	 	1	 	  	 	939	 	  	 	1	 	 	 	1,002	 	  	 	1	 	 	 	197	 	  	 	—  	 	 	 	402	 	  	 	1	 		
	 	Foreign currency swaps	  	 	10	 	  	 	—  	 	  	 	17	 	  	 	—  	 	 	 	21	 	  	 	—  	 	 	 	4	 	  	 	—  	 	 	 	10	 	  	 	—  	 		
	 	Equity index options	  	 	67	 	  	 	—  	 	  	 	66	 	  	 	—  	 	 	 	62	 	  	 	—  	 	 	 	81	 	  	 	—  	 	 	 	62	 	  	 	—  	 		
	 	Other foreign currency contracts	  	 	19	 	  	 	—  	 	  	 	2	 	  	 	—  	 	 	 	16	 	  	 	—  	 	 	 	8	 	  	 	—  	 	 	 	13	 	  	 	—  	 		
	 	Other	  	 	405	 	  	 	1	 	  	 	414	 	  	 	1	 	 	 	422	 	  	 	1	 	 	 	397	 	  	 	1	 	 	 	369	 	  	 	—  	 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total invested assets and cash	  	$	79,260	 	  	 	100	% 	  	$	77,919	 	  	 	100	% 	 	$	73,154	 	  	 	100	% 	 	$	74,572	 	  	 	100	% 	 	$	73,896	 	  	 	100	% 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
	Public Fixed Maturity Securities -  Credit Quality:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
	NRSRO(3) Designation	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
                           AAA	  	$	9,732	 	  	 	22	% 	  	$	10,805	 	  	 	25	% 	 	$	11,025	 	  	 	27	% 	 	$	10,160	 	  	 	24	% 	 	$	10,561	 	  	 	25	% 		
                             AA	  	 	3,788	 	  	 	8	 	  	 	3,636	 	  	 	8	 	 	 	3,554	 	  	 	8	 	 	 	3,536	 	  	 	8	 	 	 	3,758	 	  	 	9	 		
                               A	  	 	12,094	 	  	 	27	 	  	 	11,970	 	  	 	27	 	 	 	11,268	 	  	 	27	 	 	 	12,315	 	  	 	29	 	 	 	12,040	 	  	 	28	 		
                           BBB	  	 	17,497	 	  	 	39	 	  	 	16,780	 	  	 	37	 	 	 	14,807	 	  	 	35	 	 	 	15,041	 	  	 	36	 	 	 	15,418	 	  	 	35	 		
                             BB	  	 	1,616	 	  	 	4	 	  	 	1,506	 	  	 	3	 	 	 	1,139	 	  	 	3	 	 	 	1,040	 	  	 	3	 	 	 	1,093	 	  	 	3	 		
                               B	  	 	71	 	  	 	—  	 	  	 	73	 	  	 	—  	 	 	 	50	 	  	 	—  	 	 	 	44	 	  	 	—  	 	 	 	53	 	  	 	—  	 		
                     CCC and lower	  	 	42	 	  	 	—  	 	  	 	24	 	  	 	—  	 	 	 	21	 	  	 	—  	 	 	 	26	 	  	 	—  	 	 	 	25	 	  	 	—  	 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total public fixed maturity securities	  	$	44,840	 	  	 	100	% 	  	$	44,794	 	  	 	100	% 	 	$	41,864	 	  	 	100	% 	 	$	42,162	 	  	 	100	% 	 	$	42,948	 	  	 	100	% 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
	Private Fixed Maturity Securities -  Credit Quality:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
	NRSRO(3) Designation	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
                           AAA	  	$	1,610	 	  	 	8	% 	  	$	1,526	 	  	 	8	% 	 	$	1,382	 	  	 	8	% 	 	$	1,536	 	  	 	8	% 	 	$	1,594	 	  	 	9	% 		
                             AA	  	 	2,342	 	  	 	12	 	  	 	2,209	 	  	 	12	 	 	 	2,090	 	  	 	12	 	 	 	2,235	 	  	 	12	 	 	 	2,254	 	  	 	12	 		
                               A	  	 	5,522	 	  	 	28	 	  	 	5,320	 	  	 	28	 	 	 	4,914	 	  	 	28	 	 	 	5,182	 	  	 	29	 	 	 	5,296	 	  	 	29	 		
                           BBB	  	 	8,851	 	  	 	46	 	  	 	8,530	 	  	 	46	 	 	 	7,883	 	  	 	46	 	 	 	8,305	 	  	 	46	 	 	 	8,222	 	  	 	45	 		
                             BB	  	 	1,054	 	  	 	5	 	  	 	994	 	  	 	5	 	 	 	819	 	  	 	5	 	 	 	844	 	  	 	5	 	 	 	851	 	  	 	5	 		
                               B	  	 	183	 	  	 	1	 	  	 	160	 	  	 	1	 	 	 	98	 	  	 	1	 	 	 	73	 	  	 	—  	 	 	 	66	 	  	 	—  	 		
                     CCC and lower	  	 	14	 	  	 	—  	 	  	 	11	 	  	 	—  	 	 	 	1	 	  	 	—  	 	 	 	2	 	  	 	—  	 	 	 	2	 	  	 	—  	 		
	 		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total private fixed maturity securities	  	$	19,576	 	  	 	100	% 	  	$	18,750	 	  	 	100	% 	 	$	17,187	 	  	 	100	% 	 	$	18,177	 	  	 	100	% 	 	$	18,285	 	  	 	100	% 		

 

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

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

 	  	September 30, 2020	 	 	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 2019	 	 	September 30, 2019	 	
 	  	Fair Value	 	 	% of
Total	 	 	Fair Value	 	 	% of
Total	 	 	Fair Value	 	 	% of
Total	 	 	Fair Value	 	 	% of
Total	 	 	Fair Value	 	 	% of
Total	 	
Fixed Maturity Securities - Security Sector:	  				 			 	 				 				 				 				 				 				 				 				
	 	 									
U.S. government, agencies and government-sponsored enterprises	  	$	4,792	 	 	 	7	%  	 	$	5,602	 	 	 	9	% 	 	$	5,771	 	 	 	10	% 	 	$	5,025	 	 	 	8	% 	 	$	5,254	 	 	 	9	% 	
State and political subdivisions(1)	  	 	3,115	 	 	 	5	 	 	 	2,998	 	 	 	5	 	 	 	2,864	 	 	 	5	 	 	 	2,747	 	 	 	5	 	 	 	2,729	 	 	 	4	 	
Foreign government	  	 	1,395	 	 	 	2	 	 	 	1,542	 	 	 	2	 	 	 	1,201	 	 	 	2	 	 	 	1,350	 	 	 	2	 	 	 	1,359	 	 	 	2	 	
U.S. corporate(1)	  	 	35,234	 	 	 	55	 	 	 	34,395	 	 	 	54	 	 	 	31,077	 	 	 	52	 	 	 	32,111	 	 	 	54	 	 	 	32,424	 	 	 	54	 	
Foreign corporate	  	 	11,543	 	 	 	18	 	 	 	10,885	 	 	 	17	 	 	 	9,799	 	 	 	17	 	 	 	10,525	 	 	 	17	 	 	 	10,656	 	 	 	17	 	
Residential mortgage-backed securities	  	 	2,075	 	 	 	3	 	 	 	2,184	 	 	 	3	 	 	 	2,273	 	 	 	4	 	 	 	2,270	 	 	 	4	 	 	 	2,375	 	 	 	4	 	
Commercial mortgage-backed securities	  	 	2,976	 	 	 	5	 	 	 	2,970	 	 	 	5	 	 	 	2,981	 	 	 	5	 	 	 	3,026	 	 	 	5	 	 	 	3,071	 	 	 	5	 	
Other asset-backed securities	  	 	3,286	 	 	 	5	 	 	 	2,968	 	 	 	5	 	 	 	3,085	 	 	 	5	 	 	 	3,285	 	 	 	5	 	 	 	3,365	 	 	 	5	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturity securities	  	$	64,416	 	 	 	100	% 	 	$	63,544	 	 	 	100	% 	 	$	59,051	 	 	 	100	% 	 	$	60,339	 	 	 	100	% 	 	$	61,233	 	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate Bond Holdings - Industry Sector:	  				 			 	 				 				 				 				 				 				 				 				
	 	 									
Investment Grade:	  				 			 	 				 				 				 				 				 				 				 				
Finance and insurance	  	$	11,064	 	 	 	24	% 	 	$	10,611	 	 	 	23	% 	 	$	9,523	 	 	 	23	% 	 	$	9,881	 	 	 	23	% 	 	$	9,995	 	 	 	22	% 	
Utilities	  	 	6,057	 	 	 	13	 	 	 	6,052	 	 	 	13	 	 	 	5,555	 	 	 	14	 	 	 	5,743	 	 	 	14	 	 	 	5,868	 	 	 	14	 	
Energy	  	 	3,372	 	 	 	7	 	 	 	3,193	 	 	 	7	 	 	 	2,799	 	 	 	7	 	 	 	3,699	 	 	 	9	 	 	 	3,801	 	 	 	9	 	
Consumer - non-cyclical	  	 	6,954	 	 	 	15	 	 	 	6,836	 	 	 	15	 	 	 	6,163	 	 	 	15	 	 	 	6,247	 	 	 	15	 	 	 	6,293	 	 	 	15	 	
Consumer - cyclical	  	 	2,131	 	 	 	5	 	 	 	2,076	 	 	 	5	 	 	 	1,856	 	 	 	4	 	 	 	1,937	 	 	 	5	 	 	 	2,003	 	 	 	5	 	
Capital goods	  	 	3,531	 	 	 	7	 	 	 	3,511	 	 	 	8	 	 	 	3,076	 	 	 	8	 	 	 	3,161	 	 	 	7	 	 	 	3,243	 	 	 	8	 	
Industrial	  	 	2,279	 	 	 	5	 	 	 	2,210	 	 	 	5	 	 	 	2,063	 	 	 	5	 	 	 	2,201	 	 	 	5	 	 	 	2,188	 	 	 	5	 	
Technology and communications	  	 	4,331	 	 	 	9	 	 	 	4,221	 	 	 	9	 	 	 	3,966	 	 	 	10	 	 	 	3,966	 	 	 	9	 	 	 	3,919	 	 	 	9	 	
Transportation	  	 	2,173	 	 	 	5	 	 	 	2,151	 	 	 	5	 	 	 	2,047	 	 	 	5	 	 	 	2,127	 	 	 	5	 	 	 	2,189	 	 	 	5	 	
Other(1)	  	 	2,086	 	 	 	4	 	 	 	1,847	 	 	 	4	 	 	 	1,855	 	 	 	4	 	 	 	1,839	 	 	 	4	 	 	 	1,691	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	43,978	 	 	 	94	 	 	 	42,708	 	 	 	94	 	 	 	38,903	 	 	 	95	 	 	 	40,801	 	 	 	96	 	 	 	41,190	 	 	 	96	 	

Non-Investment Grade:	  				 			 	 				 				 				 				 				 				 				 				
Finance and insurance	  	 	289	 	 	 	1	 	 	 	258	 	 	 	1	 	 	 	211	 	 	 	1	 	 	 	212	 	 	 	1	 	 	 	208	 	 	 	—  	 	
Utilities	  	 	95	 	 	 	—  	 	 	 	97	 	 	 	—  	 	 	 	77	 	 	 	—  	 	 	 	83	 	 	 	—  	 	 	 	85	 	 	 	—  	 	
Energy	  	 	741	 	 	 	2	 	 	 	676	 	 	 	1	 	 	 	391	 	 	 	1	 	 	 	319	 	 	 	1	 	 	 	346	 	 	 	1	 	
Consumer - non-cyclical	  	 	220	 	 	 	—  	 	 	 	218	 	 	 	1	 	 	 	196	 	 	 	1	 	 	 	138	 	 	 	—  	 	 	 	138	 	 	 	—  	 	
Consumer - cyclical	  	 	349	 	 	 	1	 	 	 	297	 	 	 	1	 	 	 	225	 	 	 	1	 	 	 	220	 	 	 	1	 	 	 	233	 	 	 	1	 	
Capital goods	  	 	152	 	 	 	—  	 	 	 	130	 	 	 	—  	 	 	 	149	 	 	 	—  	 	 	 	155	 	 	 	—  	 	 	 	137	 	 	 	—  	 	
Industrial	  	 	340	 	 	 	1	 	 	 	288	 	 	 	1	 	 	 	193	 	 	 	—  	 	 	 	183	 	 	 	—  	 	 	 	224	 	 	 	1	 	
Technology and communications	  	 	452	 	 	 	1	 	 	 	437	 	 	 	1	 	 	 	418	 	 	 	1	 	 	 	417	 	 	 	1	 	 	 	425	 	 	 	1	 	
Transportation	  	 	56	 	 	 	—  	 	 	 	49	 	 	 	—  	 	 	 	29	 	 	 	—  	 	 	 	8	 	 	 	—  	 	 	 	8	 	 	 	—  	 	
Other	  	 	105	 	 	 	—  	 	 	 	122	 	 	 	—  	 	 	 	84	 	 	 	—  	 	 	 	100	 	 	 	—  	 	 	 	86	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	2,799	 	 	 	6	 	 	 	2,572	 	 	 	6	 	 	 	1,973	 	 	 	5	 	 	 	1,835	 	 	 	4	 	 	 	1,890	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	46,777	 	 	 	100	% 	 	$	45,280	 	 	 	100	% 	 	$	40,876	 	 	 	100	% 	 	$	42,636	 	 	 	100	% 	 	$	43,080	 	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed Maturity Securities - Contractual Maturity Dates:	  				 			 	 				 				 				 				 				 				 				 				
	 	 									
Due in one year or less	  	$	1,499	 	 	 	2	% 	 	$	1,517	 	 	 	2	% 	 	$	1,421	 	 	 	2	% 	 	$	1,434	 	 	 	2	% 	 	$	1,587	 	 	 	3	% 	
Due after one year through five years	  	 	10,265	 	 	 	16	 	 	 	10,054	 	 	 	16	 	 	 	8,949	 	 	 	15	 	 	 	9,381	 	 	 	16	 	 	 	9,655	 	 	 	16	 	
Due after five years through ten years	  	 	14,863	 	 	 	23	 	 	 	14,478	 	 	 	23	 	 	 	12,642	 	 	 	21	 	 	 	12,296	 	 	 	20	 	 	 	12,387	 	 	 	20	 	
Due after ten years	  	 	29,452	 	 	 	46	 	 	 	29,373	 	 	 	46	 	 	 	27,700	 	 	 	48	 	 	 	28,647	 	 	 	48	 	 	 	28,793	 	 	 	47	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	56,079	 	 	 	87	 	 	 	55,422	 	 	 	87	 	 	 	50,712	 	 	 	86	 	 	 	51,758	 	 	 	86	 	 	 	52,422	 	 	 	86	 	
Mortgage and asset-backed securities	  	 	8,337	 	 	 	13	 	 	 	8,122	 	 	 	13	 	 	 	8,339	 	 	 	14	 	 	 	8,581	 	 	 	14	 	 	 	8,811	 	 	 	14	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturity securities	  	$	64,416	 	 	 	100	% 	 	$	63,544	 	 	 	100	% 	 	$	59,051	 	 	 	100	% 	 	$	60,339	 	 	 	100	% 	 	$	61,233	 	 	 	100	% 	

 

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

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

 	  	2020	 	 	2019	 	
	  	 	3Q	 	  	 	2Q	 	 	 	1Q	 	 	 	Total	 	 	 	4Q	 	 	 	3Q	 	 	 	2Q	 	 	 	1Q	 	 	 	Total	 	
U.S. GAAP Net Investment Income	  			 	  				 				 				 				 				 				 				 				
Fixed maturity securities - taxable	  	$	632	 	  	$	601	 	 	$	622	 	 	$	1,855	 	 	$	616	 	 	$	631	 	 	$	634	 	 	$	613	 	 	$	2,494	 	
Fixed maturity securities - non-taxable	  	 	2	 	  	 	1	 	 	 	2	 	 	 	5	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	8	 	
Equity securities	  	 	3	 	  	 	2	 	 	 	2	 	 	 	7	 	 	 	3	 	 	 	4	 	 	 	5	 	 	 	4	 	 	 	16	 	
Commercial mortgage loans	  	 	82	 	  	 	84	 	 	 	85	 	 	 	251	 	 	 	94	 	 	 	87	 	 	 	85	 	 	 	82	 	 	 	348	 	
Other invested assets	  	 	57	 	  	 	52	 	 	 	49	 	 	 	158	 	 	 	50	 	 	 	49	 	 	 	47	 	 	 	44	 	 	 	190	 	
Limited partnerships	  	 	22	 	  	 	14	 	 	 	(2	) 	 	 	34	 	 	 	4	 	 	 	13	 	 	 	12	 	 	 	15	 	 	 	44	 	
Policy loans	  	 	51	 	  	 	49	 	 	 	49	 	 	 	149	 	 	 	42	 	 	 	47	 	 	 	45	 	 	 	46	 	 	 	180	 	
Cash, cash equivalents, restricted cash and short-term investments	  	 	2	 	  	 	4	 	 	 	11	 	 	 	17	 	 	 	9	 	 	 	8	 	 	 	11	 	 	 	11	 	 	 	39	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross investment income before expenses and fees	  	 	851	 	  	 	807	 	 	 	818	 	 	 	2,476	 	 	 	820	 	 	 	841	 	 	 	841	 	 	 	817	 	 	 	3,319	 	
Expenses and fees	  	 	(24	) 	  	 	(21	) 	 	 	(25	) 	 	 	(70	) 	 	 	(26	) 	 	 	(25	) 	 	 	(25	) 	 	 	(23	) 	 	 	(99	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment income	  	$	827	 	  	$	786	 	 	$	793	 	 	$	2,406	 	 	$	794	 	 	$	816	 	 	$	816	 	 	$	794	 	 	$	3,220	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Annualized Yields	  			 	  				 				 				 				 				 				 				 				
Fixed maturity securities - taxable	  	 	4.6	% 	  	 	4.4	% 	 	 	4.6	% 	 	 	4.6	% 	 	 	4.6	% 	 	 	4.7	% 	 	 	4.7	% 	 	 	4.6	% 	 	 	4.6	% 	
Fixed maturity securities - non-taxable	  	 	6.2	% 	  	 	2.6	% 	 	 	5.2	% 	 	 	4.7	% 	 	 	6.0	% 	 	 	6.1	% 	 	 	6.1	% 	 	 	6.1	% 	 	 	6.1	% 	
Equity securities	  	 	2.9	% 	  	 	4.1	% 	 	 	3.8	% 	 	 	3.0	% 	 	 	5.0	% 	 	 	6.4	% 	 	 	7.8	% 	 	 	6.1	% 	 	 	6.3	% 	
Commercial mortgage loans	  	 	4.8	% 	  	 	4.9	% 	 	 	4.9	% 	 	 	4.8	% 	 	 	5.4	% 	 	 	5.0	% 	 	 	4.9	% 	 	 	4.8	% 	 	 	5.0	% 	
Other invested assets(1)	  	 	55.7	% 	  	 	49.8	% 	 	 	47.8	% 	 	 	51.4	% 	 	 	52.2	% 	 	 	54.0	% 	 	 	56.1	% 	 	 	65.7	% 	 	 	57.2	% 	
Limited partnerships(2)	  	 	10.9	% 	  	 	7.8	% 	 	 	(1.2	)% 	 	 	6.2	% 	 	 	2.7	% 	 	 	9.7	% 	 	 	9.9	% 	 	 	13.8	% 	 	 	8.5	% 	
Policy loans	  	 	9.4	% 	  	 	9.3	% 	 	 	9.5	% 	 	 	9.4	% 	 	 	8.1	% 	 	 	9.1	% 	 	 	8.8	% 	 	 	9.5	% 	 	 	8.9	% 	
Cash, cash equivalents, restricted cash and short-term investments	  	 	0.3	% 	  	 	0.6	% 	 	 	1.4	% 	 	 	0.7	% 	 	 	1.3	% 	 	 	1.7	% 	 	 	2.2	% 	 	 	2.1	% 	 	 	1.7	% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross investment income before expenses and fees	  	 	5.0	% 	  	 	4.8	% 	 	 	4.9	% 	 	 	4.9	% 	 	 	4.9	% 	 	 	5.1	% 	 	 	5.1	% 	 	 	5.0	% 	 	 	5.0	% 	
Expenses and fees	  	 	(0.2	)% 	  	 	(0.1	)% 	 	 	(0.2	)% 	 	 	(0.2	)% 	 	 	(0.2	)% 	 	 	(0.2	)% 	 	 	(0.1	)% 	 	 	(0.2	)% 	 	 	(0.1	)% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment income	  	 	4.8	% 	  	 	4.7	% 	 	 	4.7	% 	 	 	4.7	% 	 	 	4.7	% 	 	 	4.9	% 	 	 	5.0	% 	 	 	4.8	% 	 	 	4.9	% 	

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

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

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

 	  	2020	 	 	2019	 	
 	  	3Q	 	  	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Net realized gains (losses) on available-for-sale securities:	  			 	  				 				 				 				 				 				 				 				
Fixed maturity securities:	  			 	  				 				 				 				 				 				 				 				
U.S. corporate	  	$	2	 	  	$	2	 	 	$	2	 	 	$	6	 	 	$	(2	) 	 	$	11	 	 	$	(16	) 	 	$	30	 	 	$	23	 	
U.S. government, agencies and government-sponsored enterprises	  	 	316	 	  	 	94	 	 	 	—  	 	 	 	410	 	 	 	—  	 	 	 	—  	 	 	 	2	 	 	 	33	 	 	 	35	 	
Foreign corporate	  	 	1	 	  	 	4	 	 	 	—  	 	 	 	5	 	 	 	1	 	 	 	1	 	 	 	(1	) 	 	 	(1	) 	 	 	—  	 	
Foreign government	  	 	12	 	  	 	10	 	 	 	5	 	 	 	27	 	 	 	4	 	 	 	2	 	 	 	2	 	 	 	—  	 	 	 	8	 	
Mortgage-backed securities	  	 	—  	 	  	 	4	 	 	 	—  	 	 	 	4	 	 	 	—  	 	 	 	1	 	 	 	1	 	 	 	(2	) 	 	 	—  	 	
Asset-backed securities	  	 	—  	 	  	 	(2	) 	 	 	—  	 	 	 	(2	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	(1	) 	
Foreign exchange	  	 	(1	) 	  	 	2	 	 	 	6	 	 	 	7	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	(1	) 	 	 	3	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total net realized gains (losses) on available-for-sale securities	  	 	330	 	  	 	114	 	 	 	13	 	 	 	457	 	 	 	5	 	 	 	16	 	 	 	(11	) 	 	 	58	 	 	 	68	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairments:	  			 	  				 				 				 				 				 				 				 				
Bank loans	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total impairments	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in allowance for credit losses on available-for-sale fixed maturity securities	  	 	2	 	  	 	(7	) 	 	 	—  	 	 	 	(5	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Write-down of available-for-sale fixed maturity securities	  	 	(4	) 	  	 	—  	 	 	 	—  	 	 	 	(4	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Net realized gains (losses) on equity securities sold	  	 	(3	) 	  	 	—  	 	 	 	—  	 	 	 	(3	) 	 	 	—  	 	 	 	6	 	 	 	—  	 	 	 	3	 	 	 	9	 	
Net unrealized gains (losses) on equity securities still held	  	 	3	 	  	 	9	 	 	 	(19	) 	 	 	(7	) 	 	 	1	 	 	 	(4	) 	 	 	5	 	 	 	12	 	 	 	14	 	
Limited partnerships	  	 	31	 	  	 	37	 	 	 	(40	) 	 	 	28	 	 	 	19	 	 	 	6	 	 	 	(11	) 	 	 	15	 	 	 	29	 	
Commercial mortgage loans	  	 	(3	) 	  	 	1	 	 	 	—  	 	 	 	(2	) 	 	 	(1	) 	 	 	(1	) 	 	 	1	 	 	 	(1	) 	 	 	(2	) 	
Derivative instruments	  	 	22	 	  	 	10	 	 	 	(105	) 	 	 	(73	) 	 	 	(1	) 	 	 	(29	) 	 	 	(30	) 	 	 	(12	) 	 	 	(72	) 	
Other	  	 	(3	) 	  	 	(5	) 	 	 	(1	) 	 	 	(9	) 	 	 	1	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	5	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment gains (losses), gross	  	 	375	 	  	 	159	 	 	 	(152	) 	 	 	382	 	 	 	23	 	 	 	(2	) 	 	 	(46	) 	 	 	75	 	 	 	50	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	(1	) 	  	 	4	 	 	 	11	 	 	 	14	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	2	 	 	 	11	 	
Adjustment for net investment (gains) losses attributable to noncontrolling interests	  	 	(12	) 	  	 	(32	) 	 	 	26	 	 	 	(18	) 	 	 	(9	) 	 	 	4	 	 	 	—  	 	 	 	(6	) 	 	 	(11	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment gains (losses), net	  	$	362	 	  	$	131	 	 	$	(115	) 	 	$	378	 	 	$	17	 	 	$	5	 	 	$	(43	) 	 	$	71	 	 	$	50	 	

 
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Reconciliations of Non-GAAP Measures

 
 
42

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

	Twelve Month Rolling Average ROE	  	Twelve months ended	 	
U.S. GAAP Basis ROE	  	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 		
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended(1)	  	$	(106	) 	 	$	(506	) 	 	$	103	 	 	$	343	 	 	$	31	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income(2)	  	$	10,592	 	 	$	10,618	 	 	$	10,695	 	 	$	10,650	 	 	$	10,646	 		
U.S. GAAP Basis ROE(1)/(2)	  	 	(1.0	)% 	 	 	(4.8	)% 	 	 	1.0	% 	 	 	3.2	% 	 	 	0.3	% 		
							
Operating ROE	  				 				 				 				 					
Adjusted operating income for the twelve months ended(1)	  	$	168	 	 	$	159	 	 	$	358	 	 	$	420	 	 	$	91	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income(2)	  	$	10,592	 	 	$	10,618	 	 	$	10,695	 	 	$	10,650	 	 	$	10,646	 		
Operating ROE(1)/(2)	  	 	1.6	% 	 	 	1.5	% 	 	 	3.3	% 	 	 	3.9	% 	 	 	0.9	% 		
			
	Quarterly Average ROE	  	Three months ended	 	
U.S. GAAP Basis ROE	  	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	 	September 30,
2019	 		
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended(3)	  	$	418	 	 	$	(441	) 	 	$	(66	) 	 	$	(17	) 	 	$	18	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income(4)	  	$	10,625	 	 	$	10,415	 	 	$	10,693	 	 	$	10,759	 	 	$	10,755	 		
Annualized U.S. GAAP Quarterly Basis ROE(3)/(4)	  	 	15.7	% 	 	 	(16.9	)% 	 	 	(2.5	)% 	 	 	(0.6	)% 	 	 	0.7	% 		
							
Operating ROE	  				 				 				 				 					
Adjusted operating income (loss) for the period ended(3)	  	$	132	 	 	$	(21	) 	 	$	33	 	 	$	24	 	 	$	123	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income(4)	  	$	10,625	 	 	$	10,415	 	 	$	10,693	 	 	$	10,759	 	 	$	10,755	 		
Annualized Operating Quarterly Basis ROE(3)/(4)	  	 	5.0	% 	 	 	(0.8	)% 	 	 	1.2	% 	 	 	0.9	% 	 	 	4.6	% 		
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
THIRD QUARTER 2020
 
Reconciliation of Reported Yield to Core Yield

 	  	 	  	2020	 	 	2019	 	
	  	(Assets - amounts in billions)	  	 	3Q	 	  	 	2Q	 	 	 	1Q	 	 	 	Total	 	 	 	4Q	 	 	 	3Q	 	 	 	2Q	 	 	 	1Q	 	 	 	Total	 	
	  	Reported - Total Invested Assets and Cash	  	$	79.3	 	  	$	77.9	 	 	$	73.2	 	 	$	79.3	 	 	$	74.6	 	 	$	73.9	 	 	$	72.0	 	 	$	69.5	 	 	$	74.6	 	
	  	Subtract:	  			 	  				 				 				 				 				 				 				 				
	  	Securities lending	  	 	0.1	 	  	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	
	  	Unrealized gains (losses)	  	 	10.0	 	  	 	9.7	 	 	 	6.0	 	 	 	10.0	 	 	 	6.9	 	 	 	7.5	 	 	 	5.7	 	 	 	3.7	 	 	 	6.9	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Adjusted end of period invested assets and cash	  	$	69.2	 	  	$	68.1	 	 	$	67.1	 	 	$	69.2	 	 	$	67.6	 	 	$	66.3	 	 	$	66.2	 	 	$	65.7	 	 	$	67.6	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(A)	  	Average Invested Assets and Cash Used in Reported and Core Yield Calculation	  	$	68.7	 	  	$	67.6	 	 	$	67.3	 	 	$	68.0	 	 	$	66.9	 	 	$	66.2	 	 	$	66.0	 	 	$	65.7	 	 	$	66.3	 	
		 									
	  	(Income - amounts in millions)	  			 	  				 				 				 				 				 				 				 				
		 									
(B)	  	Reported - Net Investment Income	  	$	827	 	  	$	786	 	 	$	793	 	 	$	2,406	 	 	$	794	 	 	$	816	 	 	$	816	 	 	$	794	 	 	$	3,220	 	
	  	Subtract:	  			 	  				 				 				 				 				 				 				 				
	  	Bond calls and commercial mortgage loan prepayments	  	 	23	 	  	 	8	 	 	 	16	 	 	 	47	 	 	 	23	 	 	 	13	 	 	 	7	 	 	 	6	 	 	 	49	 	
	  	Other non-core items(1)	  	 	6	 	  	 	2	 	 	 	7	 	 	 	15	 	 	 	(2	) 	 	 	8	 	 	 	7	 	 	 	2	 	 	 	15	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(C)	  	Core Net Investment Income	  	$	798	 	  	$	776	 	 	$	770	 	 	$	2,344	 	 	$	773	 	 	$	795	 	 	$	802	 	 	$	786	 	 	$	3,156	 	

(B) / (A)	  	Reported Yield	  	 	4.82	% 	  	 	4.65	% 	 	 	4.71	% 	 	 	4.72	% 	 	 	4.74	% 	 	 	4.93	% 	 	 	4.95	% 	 	 	4.83	% 	 	 	4.86	% 	
(C) / (A)	  	Core Yield	  	 	4.65	% 	  	 	4.59	% 	 	 	4.57	% 	 	 	4.60	% 	 	 	4.62	% 	 	 	4.80	% 	 	 	4.86	% 	 	 	4.79	% 	 	 	4.76	% 	
Note:    Yields have been annualized.
Non-GAAP Definition for Core Yield
The company references the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP.

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

 
 
45

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2020
Financial Strength Ratings As Of November 3, 2020

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

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