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
February 16, 2021
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 February 16, 2021, Genworth Financial, Inc. (the “Company”) issued (1) a press release announcing its financial results for the quarter ended December 31, 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 December 31, 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 February 16, 2021		
			
99.2	  	Financial Supplement for the quarter ended December 31, 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: February 16, 2021	 		 	By:	 	/s/ Matthew D. Farney	
	 		 		 	Matthew D. Farney	
	 		 		 	Vice President and Controller	
	 		 		 	(Principal Accounting Officer)	

Exhibit 99.1

Genworth Financial Announces Fourth Quarter 2020 Results
Fourth Quarter Net Income Of $267 Million And Adjusted Operating Income Of $173 Million; 2020 Full Year Net Income Of $178 Million And Adjusted Operating Income Of $317 Million
 
 	•	 	U.S. Mortgage Insurance (MI) 2020 Full Year Adjusted Operating Income Of $381 Million; Record New Insurance Written (NIW)	
 
 	•	 	U.S. MI’s PMIERs1 Sufficiency Ratio Estimated At 137 Percent, $1,229 Million Above Published Requirements	
 
 	•	 	Annual U.S. GAAP Assumption Review Completed For U.S. Life Insurance:	
 
 	•	 	Net Favorable Impacts Of $13 Million After-Tax In Long Term Care Insurance (LTC) And $10 Million After-Tax In Life Insurance	
 
 	•	 	LTC Active Life U.S. GAAP Margins Of Approximately $0.5 To $1.0 Billion, Consistent With Prior Year	
 
 	•	 	Continued Progress Toward LTC Multi-Year Rate Action Plan (MYRAP) With $344 Million Incremental Annual Rate Increases Approved In 2020, With An Estimated Net Present Value (NPV) Of Approximately $2.0 Billion	
 
 	•	 	As Of December 31, 2020, Holding Company Cash And Liquid Assets Of $1.1 Billion, Including $71 Million Restricted; Company Fully Paid Its February 2021 Debt Of $338 Million Subsequent To Year End	
Richmond, VA (February 16, 2021) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended December 31, 2020. The company reported net income2 of $267 million, or $0.52 per diluted share, in the fourth quarter of 2020, compared with a net loss of $17 million, or $0.03 per diluted share, in the fourth quarter of 2019. The company reported adjusted operating income3 of $173 million, or $0.34 per diluted share, in the fourth quarter of 2020, compared with adjusted operating income of $24 million, or $0.05 per diluted share, in the fourth quarter of 2019.
The company reported full year net income of $178 million, or $0.35 per diluted share, in 2020, compared with net income of $343 million, or $0.67 per diluted share, in 2019. The company reported adjusted operating income of $317 million, or $0.62 per diluted share, in 2020, compared with adjusted operating income of $420 million, or $0.82 per diluted share, in 2019.

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

Strategic Update
Genworth continues to focus on executing its contingency plan to raise liquidity to address its 2021 obligations and maximize shareholder value. The plan builds on actions the company has taken over the last several years to strengthen its financial position, including the sale of its Canadian mortgage insurance business, the completion of a debt offering at the U.S. MI holding company and the settlement with AXA S.A.
As previously disclosed, Genworth remains focused on preparing for a potential partial initial public offering (IPO) of its U.S. MI business, subject to market conditions as well as the satisfaction of various conditions and approvals. The company is also taking steps to align its expense structure with current business activities. Expense reduction initiatives completed to date are anticipated to result in annualized savings of approximately $50 million.
Additionally, the company continues to manage the U.S. life insurance companies on a standalone basis. Going forward, the U.S. life insurance businesses will continue to rely on their consolidated statutory capital of approximately $2.3 billion dollars (as of September 30, 2020), significant claim and active life reserves, prudent management of in force blocks and actuarially justified rate actions to satisfy policyholder obligations. Genworth made strong progress on its MYRAP in 2020, receiving approvals on $344 million of incremental annual premium increases during the year. In aggregate, the company estimates it has now achieved approximately $14.5 billion in NPV from approved rate increases since 2012. The company continues to work closely with the National Association of Insurance Commissioners and state regulators to demonstrate the broad-based need for actuarially justified rate increases in order to pay future claims.
“I am very pleased with Genworth’s strong fourth quarter performance, which we were able to deliver despite the ongoing uncertainty in our current operating environment,” said Tom McInerney, Genworth President and CEO. “In addition, we have made significant progress towards meeting our obligations in 2021 since our last update, including working towards the potential IPO of the U.S. MI business, streamlining our cost structure and paying our February debt obligation. I look forward to continuing to execute against our contingency plan to further strengthen our financial position and create long-term value.”
On January 4, Genworth and China Oceanwide Holdings Group Co., Ltd (Oceanwide) announced that they decided not to extend the December 31, 2020 “end date” under their merger agreement. The merger agreement between Genworth and Oceanwide remains in effect, although either party is able to terminate the merger agreement at any time. The Oceanwide transaction previously received all U.S. regulatory approvals needed to close the transaction. If Oceanwide is able to secure the required funding to close the transaction, the parties would need to re-engage with their regulators to determine the re-approvals or confirmations that would be necessary to close the transaction.
 
2

Financial Performance

Consolidated Net Income (Loss) &	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	  	 	 		
Adjusted Operating Income	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	  	 	 		
 	  	Three months ended December 31	 	 	 	 	 	Twelve months ended December 31	 	  	 	 		
 	  	2020	 	  	2019	 	 	 	 	 	2020	 	  	2019	 	  	 	 		
 	  	 	 	  	Per	 	  	 	 	 	Per	 	 	 	 	 	 	 	  	Per	 	  	 	 	  	Per	 	  	 	 		
 	  	 	 	  	diluted	 	  	 	 	 	diluted	 	 	Total	 	 	 	 	  	diluted	 	  	 	 	  	diluted	 	  	Total	 		
	(Amounts in millions, except per share)	  	Total	 	  	share	 	  	Total	 	 	share	 	 	% change	 	 	Total	 	  	share	 	  	Total	 	  	share	 	  	% change	 	
Net income (loss) available to Genworth’s common stockholders	  	$	267	 	  	$	0.52	 	  	$	(17	) 	 	$	(0.03	) 	 	 	NM	4 	 	$	178	 	  	$	0.35	 	  	$	343	 	  	$	0.67	 	  	 	(48	)% 		
Adjusted operating income	  	$	173	 	  	$	0.34	 	  	$	24	 	 	$	0.05	 	 	  	NM	4 	 	$	317	 	  	$	0.62	 	  	$	420	 	  	$	0.82	 	  	 	(25	)% 		
Weighted-average diluted common shares	  	 	512.5	 	  				  	 	510.4	 	 				 				 	 	511.6	 	  				  	 	509.7	 	  				  					
									
 	  	As of December 31	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	  	 	 		
 	  	2020	 	  	2019	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	  	 	 		
Book value per share	  				  	$	30.28	 	  				 	$	28.17	 	 				 				  				  				  				  					
Book value per share, excluding accumulated other comprehensive income (loss)	  				  	$	21.54	 	  				 	$	21.35	 	 				 				  				  				  				  					
Net investment gains, net of taxes and other adjustments, increased net income by $125 million in the quarter. The investment gains were driven by mark-to-market gains on limited partnerships in the LTC business and net gains on derivatives, including gains due to guaranteed minimum withdrawal benefits on variable annuities and foreign exchange hedges in Australia MI due to strengthening of the Australian dollar. The net loss in the fourth quarter of 2019 included $12 million from investment gains, net of taxes and other adjustments.
Net investment income was $854 million in the quarter, compared to $827 million in the prior quarter and $794 million in the prior year. Net investment income was higher than the prior quarter and prior year as a result of higher income from limited partnerships, bond calls and commercial mortgage loan (CML) prepayments, primarily in the LTC business. The reported yield and the core yield3 for the quarter were 4.94 percent and 4.67 percent, respectively, compared to 4.82 percent and 4.65 percent, respectively, in the prior quarter.
Genworth’s effective tax rate on income from continuing operations for the quarter was approximately 22 percent. The effective tax rate was above 21 percent due primarily to the higher tax expense on foreign operations and state income taxes.
Adjusted operating income (loss) results by business line are summarized in the table below:

Adjusted Operating Income (Loss)	  	 	 	  	 	 	  	 	 		
	(Amounts in millions)	  	Q4 20	 	  	Q3 20	 	  	Q4 19	 	
U.S. Mortgage Insurance	  	$	95	 	  	$	141	 	  	$	160	 		
Australia Mortgage Insurance	  	 	(16	) 	  	 	7	 	  	 	12	 		
U.S. Life Insurance	  	 	129	 	  	 	14	 	  	 	(115	) 		
Runoff	  	 	13	 	  	 	19	 	  	 	17	 		
Corporate and Other	  	 	(48	) 	  	 	(49	) 	  	 	(50	) 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Total Adjusted Operating Income	  	$	173	 	  	$	132	 	  	$	24	 		

4 	The company defines “NM” as not meaningful for increases or decreases greater than 200 percent.	
 
3

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 is included at the end of this press release.
Unless specifically noted in the discussion of results for the Australia MI business, references to percentage changes exclude the impact of translating foreign denominated activity into U.S. dollars (foreign exchange). Percentage changes that include the impact of foreign exchange are found in a table at the end of this press release.
U.S. Mortgage Insurance

Operating Metrics	  	 	 	 	 	 	 	 	 		
	(Dollar amounts in millions)	  	Q4 20	 	 	Q3 20	 	 	Q4 19	 	
Adjusted operating income	  	$	95	 	 	$	141	 	 	$	160	 		
Primary new insurance written	  	$	27,000	 	 	$	26,600	 	 	$	18,100	 		
Loss ratio	  	 	35	% 	 	 	18	% 	 	 	4	% 		
U.S. MI reported adjusted operating income of $95 million, compared with $141 million in the prior quarter and $160 million in the prior year. U.S. MI’s primary insurance in force increased 14 percent versus the prior year from strong NIW, partially offset by lower persistency. Primary NIW increased two percent from the prior quarter due to continued strong mortgage originations and was up 49 percent versus the prior year primarily from higher mortgage originations and a larger private mortgage insurance market. Earned premiums in the quarter were flat to the prior quarter as insurance in force growth was offset by higher ceded reinsurance premiums and slightly lower average premium rates. 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 from elevated mortgage refinancing, partially offset by a favorable $14 million pre-tax single premium earnings pattern adjustment in the prior year, higher ceded premiums from reinsurance transactions and lower average premium rates.
U.S. MI’s current quarter results reflected losses of $89 million and a loss ratio of 35 percent, which were driven by $50 million of losses from new delinquencies and $37 million pre-tax reserve strengthening on existing delinquencies. New delinquencies decreased by 28 percent from 16,664 in the prior quarter to 11,923. The reserve strengthening in the quarter primarily reflects the company’s expectation that previously reported delinquencies in forbearance plans will have a higher claim rate than the initial best estimate given the slower emergence of cures relative to original expectations, as well as the ongoing economic uncertainty related to the COVID-19 pandemic. Results in the prior quarter and prior year reflected losses of $45 million and $11 million,
 
4

and a loss ratio of 18 percent and four percent, respectively. The sequential increase in losses was mainly driven by the reserve strengthening in the current quarter and the prior quarter incurred but not reported (IBNR) reserve release of $23 million pre-tax, or $18 million after-tax, partially offset by lower losses from new delinquencies. Approximately 56 percent of new primary delinquencies were reported in forbearance plans which may cure at elevated rates relative to historical performance. Current quarter losses increased versus the prior year driven primarily by the current quarter reserve strengthening and higher losses from new delinquencies. Additionally, U.S. MI had an unfavorable $6 million pre-tax charge related to accelerated amortization of deferred acquisition costs (DAC) in the current quarter driven by elevated lapse from high refinance activity.
Australia Mortgage Insurance

Operating Metrics	  	 	 	 	 	 	 	 	 		
	(Dollar amounts in millions)	  	Q4 20	 	 	Q3 20	 	 	Q4 19	 	
Adjusted operating income (loss)	  	$	(16	) 	 	$	7	 	 	$	12	 		
New insurance written	  				 				 					
Flow	  	$	6,700	 	 	$	5,500	 	 	$	4,900	 		
Bulk	  	$	600	 	 	$	100	 	 	$	400	 		
Loss ratio	  	 	122	% 	 	 	37	% 	 	 	30	% 		
Australia MI reported an adjusted operating loss of $16 million, compared to adjusted operating income of $7 million in the prior quarter and adjusted operating income of $12 million in the prior year. Current quarter results included higher losses from reserve strengthening compared with the prior quarter and prior year. Australia MI flow NIW increased 18 percent sequentially and increased 29 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, over 8,100 of Australia MI’s insured loans in force continued to be enrolled in a payment deferral or payment holiday program, down from approximately 31,000 reported at the end of the prior quarter. Under regulatory guidance, these loans, unless previously delinquent, are reported as current. The business strengthened its loss reserves by $88 million pre-tax in the current quarter for both a refinement in its reserving methodology to more closely align with historical delinquency behavior and for loans in payment deferral programs. The reserve strengthening drove a loss ratio in the quarter of 122 percent, which was up 85 points sequentially and up 92 points versus the prior year.
 
5

U.S. Life Insurance

Adjusted Operating Income (Loss)	  	 	 	  	 	 	  	 	 		
	(Amounts in millions)	  	Q4 20	 	  	Q3 20	 	  	Q4 19	 	
Long Term Care Insurance	  	$	129	 	  	$	59	 	  	$	19	 		
Life Insurance	  	 	(20	) 	  	 	(69	) 	  	 	(164	) 		
Fixed Annuities	  	 	20	 	  	 	24	 	  	 	30	 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Total U.S. Life Insurance	  	$	129	 	  	$	14	 	  	$	(115	) 		
	  	 	 	 	  	 	 	 	  	 	 	 		
Long Term Care Insurance
Long term care insurance reported adjusted operating income of $129 million, compared with $59 million in the prior quarter and $19 million in the prior year. Claim terminations in the current quarter were higher compared to the prior quarter and prior year. Although it is not the company’s current practice to track cause of death for LTC policyholders and claimants, the elevated terminations impacting the current and prior quarter were likely the result of the COVID-19 pandemic. LTC results also reflected higher net investment income of $29 million after-tax versus the prior quarter and $40 million after-tax versus the prior year from limited partnerships, bond calls and CML prepayments. New claim incidence remained low in the fourth quarter, which drove continued favorable development on IBNR claim reserves. Since the recent decrease in incidence is assumed to be driven by the COVID-19 pandemic and temporary in nature, IBNR claim reserves were strengthened by an additional $37 million after-tax in the current quarter. The company also assumed that the COVID-19 pandemic has accelerated its mortality experience on the most vulnerable claimants, leaving its overall claim population less likely to terminate compared to the pre-pandemic average population, and therefore strengthened its claim reserves by $72 million after-tax in the current quarter. Earnings continue to benefit from in force rate actions but were lower than the prior quarter and prior year, reflecting less favorable impacts from benefit reductions, partially offset by higher premiums.
Results in the current quarter reflected a net benefit of $13 million after-tax from the completion of the annual review of LTC assumptions and methodologies. The net benefit was primarily related to assumption updates to claim incidence and claim and policy terminations, based on the company’s current long-term view of these assumptions. The COVID-19 pandemic impacts to the LTC business are not currently expected to be indicative of future trends or loss performance.
During the quarter, the company completed its annual review of U.S. GAAP active life margins, also referred to as loss recognition testing. All key margin-testing assumptions were reviewed and updated where appropriate. As of December 31, 2020, the loss recognition testing margins for the LTC business were approximately $0.5 to $1.0 billion, unchanged from the prior year. The 2020 margins reflected updated assumptions including an unfavorable update for recent benefit utilization experience, which was offset by a higher modeled benefit from planned future in force rate actions. The company continues to separately test its LTC acquired block (representing business written prior to late 1995) for recoverability as part of testing its U.S. GAAP loss recognition margins. The loss recognition testing margin for the LTC acquired block was positive and did not require an increase to reserves in the quarter.
 
6

Life Insurance
Life insurance reported an adjusted operating loss of $20 million, compared with $69 million in the prior quarter and $164 million in the prior year. During the quarter, the company completed its annual review of life insurance assumptions and recorded a benefit of $10 million after-tax, which included $60 million of favorable assumption changes primarily related to its term universal life insurance products, partially offset by a $50 million charge from annual DAC recoverability testing in its universal life insurance products. Results in the prior year included charges of $139 million after-tax related to the company’s annual review of life insurance assumptions. Current quarter results also reflected lower DAC amortization compared to the prior quarter and prior year, primarily associated with fewer lapses from the large 20-year level-premium term life insurance block entering its post-level premium period. Results also reflected lower 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 compared to the prior quarter and prior year. Life mortality was higher compared to the prior quarter and prior year, attributable in part to the COVID-19 pandemic.
Fixed Annuities
Fixed annuities reported adjusted operating income of $20 million, compared with $24 million in the prior quarter and $30 million in the prior year. Results versus the prior quarter and prior year reflected lower mortality in the single premium immediate annuity product and lower net spreads.
Runoff
Runoff reported adjusted operating income of $13 million, compared with $19 million in the prior quarter and $17 million in the prior year. Results in the current quarter included a $5 million after-tax charge for the company’s variable annuity products from annual assumption updates.
Corporate And Other
Corporate and Other reported an adjusted operating loss of $48 million, compared with $49 million in the prior quarter and $50 million in the prior year. Current quarter results reflected favorable tax timing adjustments compared to the prior quarter and lower net investment income compared to both the prior quarter and prior year.
 
7

Capital & Liquidity
Genworth maintains the following capital positions in its operating subsidiaries:

Key Capital & Liquidity Metrics	  	 	 	 	 	 	 	 	 		
	(Dollar amounts in millions)	  	Q4 20	 	 	Q3 20	 	 	Q4 19	 	
U.S. MI	  				 				 					
Consolidated Risk-To-Capital Ratio5	  	 	12.1:1	 	 	 	12.1:1	 	 	 	12.2:1	 		
Genworth Mortgage Insurance Corporation Risk-To-Capital Ratio5	  	 	12.3:1	 	 	 	12.3:1	 	 	 	12.5:1	 		
Private Mortgage Insurer Eligibility Requirements (PMIERs) Sufficiency Ratio5, 6	  	 	137	% 	 	 	132	% 	 	 	138	% 		
Australia MI	  				 				 					
Prescribed Capital Amount (PCA) Ratio5	  	 	165	% 	 	 	179	% 	 	 	191	% 		
U.S. Life Insurance Companies	  				 				 					
Consolidated Risk-Based Capital (RBC) Ratio	  	  	N/A	7 	 	 	239	% 	 	 	213	% 		
Holding Company Cash and Liquid Assets8,9	  	$	1,103	 	 	$	814	 	 	$	1,531	 		
Key Points
 
 	•	 	U.S. MI’s PMIERs sufficiency ratio is estimated to be 137 percent, $1,229 million above published PMIERs requirements10. The PMIERs sufficiency ratio was up five points, or $155 million, sequentially, driven in part by the completion of an insurance linked notes transaction, which added $311 million of additional PMIERs capital credit as of December 31, 2020, and elevated lapse from prevailing low interest rates in the current quarter, partially offset by elevated NIW. Additionally, elevated lapse continued to drive an acceleration of the amortization on existing reinsurance transactions, which caused a reduction in PMIERs capital credit in the current quarter;	
 
 	•	 	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 $1,046 million at the end of the current quarter, compared to $1,217 million at the end of the third quarter;	
 
 	•	 	Genworth Mortgage Holdings, Inc.11 held $300 million of cash as of December 31, 2020, unchanged from the prior quarter;	
 
 	•	 	Australia MI’s PCA ratio is estimated to be 165 percent, above the company’s target capital range of 132 to 144 percent; a 14-point sequential decline from higher required capital largely due to levels of new insurance written;	
 
 	•	 	Australia MI renewed its AUD$800 million reinsurance program, effective January 1, 2021;	

5 	Company estimate for the fourth quarter of 2020 due to timing of the preparation and filing of statutory statements.	
6 	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 December 31, 2020, September 30, 2020, and December 31, 2019, the PMIERs sufficiency ratios were $1,229 million, $1,074 million and $1,057 million, respectively, of available assets above the published PMIERs requirements.	
7 	U.S. life insurance companies’ statutory and cash flow testing results will be made available with year-end statutory filings.	
8 	Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc.	
9 	Genworth Holdings, Inc. had $1,078 million, $814 million and $1,461 million of cash, cash equivalents and restricted cash as of December 31, 2020, September 30, 2020 and December 31, 2019, respectively, which included $46 million and $74 million of restricted cash and cash equivalents as of December 31, 2020 and September 30, 2020, respectively. Genworth Holdings, Inc. also held $25 million and $70 million in U.S. government securities as of December 31, 2020 and 2019, respectively, which included $25 million and $48 million, respectively, of restricted assets.	
10 	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.	
11 	Genworth’s indirect wholly-owned mortgage insurance subsidiary.	
 
8

 	•	 	U.S. life insurance companies’ statutory and cash flow testing results remain in process and will be made available with year-end statutory filings; and	
 
 	•	 	The holding company ended the quarter with $1,103 million of cash and liquid assets, including $71 million that is restricted, which was up $289 million compared with the prior quarter’s ending balance. The increase was primarily from intercompany cash tax payments related to taxable income from the third and fourth quarters of 2020. Subsequent to year end, the company retired its February 2021 debt of $338 million. The company has $659 million in principal due in September 2021.	
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.
Conference Call And Financial Supplement Information
This press release and the fourth quarter 2020 financial supplement are now posted on the company’s website. Additional information regarding business results will be posted on the company’s website, http://investor.genworth.com, by 8:00 a.m. on February 17, 2021. Investors are encouraged to review these materials.
Genworth will conduct a conference call on February 17, 2021 at 9:00 a.m. (ET) to discuss the quarter’s results. Genworth’s conference call will be accessible via telephone and the Internet. The dial-in number for Genworth’s February 17th conference call is 888 208.1820 or 323 794.2110 (outside the U.S.); conference ID # 7162731. 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 # 7162731 through March 3, 2021. The webcast will also be archived on the company’s website for one year.
 
9

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.
 
10

During 2020, the company repurchased $84 million 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 in the second and first quarters of 2020, 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 each of the fourth, 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 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 for the three and twelve months ended December 31, 2020 and 2019, as well as for the three months ended September 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.
 
11

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 U.S. mortgage insurance business is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans the company insures. Insurance in force for the company’s Australia mortgage insurance business 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.
 
12

Cautionary Note Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company’s future business and financial performance. Examples of forward-looking statements include statements the company makes relating to the potential termination, extension or closing of the transaction with China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, Oceanwide), Oceanwide’s funding plans and regulatory approvals in the event an extension is pursued, actions the company may take to align its expense structure with anticipated business needs and transactions the company is pursuing to address its near-term liabilities and financial obligations, which may include additional debt financing 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:
 
 	•	 	the company may be unable to successfully execute strategic plans to effectively address its current business challenges including: the company’s inability to successfully execute on any of its strategic plans to effectively address its current business challenges (including with respect to addressing its debt maturities and other near-term liabilities and financial obligations, reducing costs, stabilizing its U.S. life insurance businesses without additional capital contributions, overall capital and ratings); 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; a failure to complete the Oceanwide transaction or the inability to pursue alternative strategic plans pending the outcome of the transaction; 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 (including a potential partial sale through an initial public offering of its U.S. mortgage insurance business) in each case, in a timely manner and on anticipated terms; an inability to increase the capital needed in the company’s businesses in a timely manner and on anticipated terms, including through improved business performance, reinsurance or similar transactions, asset sales, debt issuances, securities offerings or otherwise, in each case as and when required; a failure to obtain any required regulatory, stockholder, noteholder approvals and/or other third-party approvals or consents for such alternative strategic plans; 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; an inability to achieve anticipated cost-savings in a timely manner; and adverse tax or accounting charges;	
 
 	•	 	risks related to the proposed transaction with Oceanwide including: the risk that Oceanwide and/or the company decides to terminate the merger agreement or that Oceanwide will be unable to complete the funding of the transaction and/or the transaction with Oceanwide may not be completed, any of which may adversely affect the company’s business and the price of its common stock; greater difficulty in executing alternative strategic plans to effectively address its near-term liabilities and financial obligations, including the risks that it will be unable to raise additional debt financing and/or sell a percentage of its ownership interest in its U.S. mortgage insurance business to repay/refinance debt maturing in 2021 and beyond and the promissory note to AXA S.A. (AXA); 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, to the extent the transaction is pursued, 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); with continuing delays, circumstances may arise that make one or both parties unwilling to proceed with the transaction with Oceanwide or unable to comply with the conditions to existing regulatory approvals or one or both of the parties may be unwilling to accept any new condition under a regulatory approval; the parties will not be able to obtain regulatory approvals, clearances or extensions, including in connection with a potential alternative funding structure or the current geo-political environment; one or more	
 
13

 	regulators may rescind or fail to extend existing approvals, or the revocation by one regulator of approvals may 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; a condition to closing 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 are unable to agree upon all terms following receipt of all regulatory approvals and clearances; 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; potential legal proceedings may be instituted against the company in connection with the transaction delay and/or its termination; the proposed Oceanwide transaction or its termination disrupts the company’s current plans and operations; 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 or as a result of the termination 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, if the merger agreement is extended, that may impact the company’s ability to pursue certain business opportunities or strategic transactions; continued availability of capital and financing to the company under acceptable terms 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, including costs and expenses related to conditions imposed in connection with regulatory approvals, re-approvals or clearances, which may be material; the inability to reduce costs due to the delay or termination of the transaction, or that cost reductions or other actions taken during a delay in the transaction cause either party to terminate the merger agreement; the amount of the costs, fees, expenses and other charges related to the transaction or the inability to significantly reduce costs in connection with any proposed resource alignment due to the delay or termination of the 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;	
 
 	•	 	risks relating to estimates, assumptions and valuations including: inadequate reserves and the need to increase reserves (including as a result of any changes the company may make in the future to its assumptions, methodologies or otherwise in connection with periodic or other reviews); risks related to the impact of the company’s annual review of assumptions and methodologies related to its long term care insurance claim reserves and margin reviews, including risks that additional information obtained in the future 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 future changes it may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews); adverse impact on the company’s financial results as a result of projected profits followed by projected losses (as is currently the case with its long term care insurance business); adverse impact on the company’s results of operations, including the outcome of its reviews of the premium earnings pattern for its mortgage insurance businesses; and changes in valuation of fixed maturity and equity securities;	
 
 	•	 	liquidity, financial strength ratings, credit and counterparty risks including: insufficient internal sources to meet liquidity needs and limited or no access to capital; an inability to obtain further financing, either by raising capital through issuing additional debt or equity and/or selling a percentage of the company’s ownership interests in its mortgage insurance businesses, including a potential partial initial public offering of the company’s U.S. mortgage insurance business and/or the issuance of debt, convertible or equity-linked securities, prior to the company’s senior notes maturing in September 2021, or ability to obtain 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	
 
14

 	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;	
 
 	•	 	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 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;	
 
 	•	 	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;	
 
15

 	•	 	insurance and product-related risks including: the company’s inability to increase premiums and reduce benefits sufficiently, and in a timely manner, on its in force long term care insurance policies, in each case, as currently anticipated and as may be required from time to time in the future (including as a result of a delay or failure to obtain any necessary regulatory approvals, including as a result of the COVID-19 pandemic, or unwillingness or inability of policyholders to pay increased premiums and/or accept reduced benefits), including to offset any negative impact on the company’s long term care insurance margins; availability, affordability and adequacy of reinsurance to protect the company against losses; decreases in the volume of high loan-to-value mortgage originations or increases in mortgage insurance cancellations; increases in the use of alternatives to private mortgage insurance and reductions in the level of coverage selected; potential liabilities in connection with the company’s U.S. contract underwriting services; and medical advances, such as genetic research and diagnostic imaging, and related legislation that impact policyholder behavior in ways adverse to the company;	
 
 	•	 	other risks including: impairments of or valuation allowances against the company’s deferred tax assets and the occurrence of natural or man-made disasters or a future pandemic, similar to 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	 		
 
16

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

 	  	 	 	 	 	 	 	 	 	 	 	 	 	Three months	 	
 	  	Three months ended	 	 	Twelve months ended	 	 	ended	 	
 	  	December 31,	 	 	December 31,	 	 	September 30,	 	
 	  	2020	 	 	2019	 	 	2020	 	 	2019	 	 	2020	 	
Revenues:	  				 				 				 				 				
Premiums	  	$	1,042	 	 	$	1,033	 	 	$	4,110	 	 	$	4,037	 	 	$	1,034	 	
Net investment income	  	 	854	 	 	 	794	 	 	 	3,260	 	 	 	3,220	 	 	 	827	 	
Net investment gains (losses)	  	 	176	 	 	 	23	 	 	 	558	 	 	 	50	 	 	 	375	 	
Policy fees and other income	  	 	191	 	 	 	188	 	 	 	730	 	 	 	789	 	 	 	184	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	2,263	 	 	 	2,038	 	 	 	8,658	 	 	 	8,096	 	 	 	2,420	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses:	  				 				 				 				 				
Benefits and other changes in policy reserves	  	 	1,245	 	 	 	1,346	 	 	 	5,391	 	 	 	5,163	 	 	 	1,299	 	
Interest credited	  	 	132	 	 	 	138	 	 	 	549	 	 	 	577	 	 	 	137	 	
Acquisition and operating expenses, net of deferrals	  	 	267	 	 	 	249	 	 	 	988	 	 	 	962	 	 	 	249	 	
Amortization of deferred acquisition costs and intangibles	  	 	182	 	 	 	164	 	 	 	492	 	 	 	441	 	 	 	101	 	
Goodwill impairment	  	 	—  	 	 	 	—  	 	 	 	5	 	 	 	—  	 	 	 	—  	 	
Interest expense	  	 	57	 	 	 	60	 	 	 	202	 	 	 	239	 	 	 	49	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,883	 	 	 	1,957	 	 	 	7,627	 	 	 	7,382	 	 	 	1,835	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations before income taxes	  	 	380	 	 	 	81	 	 	 	1,031	 	 	 	714	 	 	 	585	 	
Provision for income taxes	  	 	84	 	 	 	26	 	 	 	270	 	 	 	195	 	 	 	150	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	 	296	 	 	 	55	 	 	 	761	 	 	 	519	 	 	 	435	 	
Income (loss) from discontinued operations, net of taxes	  	 	(30	) 	 	 	(31	) 	 	 	(549	) 	 	 	11	 	 	 	1	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	266	 	 	 	24	 	 	 	212	 	 	 	530	 	 	 	436	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	(1	) 	 	 	19	 	 	 	34	 	 	 	64	 	 	 	18	 	
Less: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	22	 	 	 	—  	 	 	 	123	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	  	$	267	 	 	$	(17	) 	 	$	178	 	 	$	343	 	 	$	418	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders:	  				 				 				 				 				
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders	  	$	297	 	 	$	36	 	 	$	727	 	 	$	455	 	 	$	417	 	
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders	  	 	(30	) 	 	 	(53	) 	 	 	(549	) 	 	 	(112	) 	 	 	1	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	  	$	267	 	 	$	(17	) 	 	$	178	 	 	$	343	 	 	$	418	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:	  				 				 				 				 				
Basic	  	$	0.59	 	 	$	0.07	 	 	$	1.44	 	 	$	0.90	 	 	$	0.83	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.58	 	 	$	0.07	 	 	$	1.42	 	 	$	0.89	 	 	$	0.82	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:	  				 				 				 				 				
Basic	  	$	0.53	 	 	$	(0.03	) 	 	$	0.35	 	 	$	0.68	 	 	$	0.83	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.52	 	 	$	(0.03	) 	 	$	0.35	 	 	$	0.67	 	 	$	0.82	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average common shares outstanding:	  				 				 				 				 				
Basic	  	 	505.6	 	 	 	503.5	 	 	 	505.2	 	 	 	502.9	 	 	 	505.6	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	 	512.5	 	 	 	510.4	 	 	 	511.6	 	 	 	509.7	 	 	 	511.5	 	

17

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

 	  	Three	 	 	Twelve	 	 	Three	 	
 	  	months ended	 	 	months ended	 	 	months ended	 	
 	  	December 31,	 	 	December 31,	 	 	September 30,	 	
 	  	2020	 	 	2019	 	 	2020	 	 	2019	 	 	2020	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	  	$	267	 	 	$	(17	) 	 	$	178	 	 	$	343	 	 	$	418	 	
Add: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	(1	) 	 	 	19	 	 	 	34	 	 	 	64	 	 	 	18	 	
Add: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	22	 	 	 	—  	 	 	 	123	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	266	 	 	 	24	 	 	 	212	 	 	 	530	 	 	 	436	 	
Less: income (loss) from discontinued operations, net of taxes	  	 	(30	) 	 	 	(31	) 	 	 	(549	) 	 	 	11	 	 	 	1	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	 	296	 	 	 	55	 	 	 	761	 	 	 	519	 	 	 	435	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	(1	) 	 	 	19	 	 	 	34	 	 	 	64	 	 	 	18	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders	  	 	297	 	 	 	36	 	 	 	727	 	 	 	455	 	 	 	417	 	
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:	  				 				 				 				 				
Net investment (gains) losses, net12	  	 	(160	) 	 	 	(17	) 	 	 	(538	) 	 	 	(50	) 	 	 	(362	) 	
Goodwill impairment, net13	  	 	—  	 	 	 	—  	 	 	 	3	 	 	 	—  	 	 	 	—  	 	
(Gains) losses on early extinguishment of debt	  	 	—  	 	 	 	—  	 	 	 	9	 	 	 	—  	 	 	 	—  	 	
Expenses related to restructuring	  	 	1	 	 	 	—  	 	 	 	3	 	 	 	4	 	 	 	—  	 	
Taxes on adjustments	  	 	35	 	 	 	5	 	 	 	113	 	 	 	11	 	 	 	77	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income	  	$	173	 	 	$	24	 	 	$	317	 	 	$	420	 	 	$	132	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income (loss):	  				 				 				 				 				
U.S. Mortgage Insurance segment	  	$	95	 	 	$	160	 	 	$	381	 	 	$	568	 	 	$	141	 	
Australia Mortgage Insurance segment	  	 	(16	) 	 	 	12	 	 	 	1	 	 	 	51	 	 	 	7	 	
U.S. Life Insurance segment:	  				 				 				 				 				
Long Term Care Insurance	  	 	129	 	 	 	19	 	 	 	237	 	 	 	57	 	 	 	59	 	
Life Insurance	  	 	(20	) 	 	 	(164	) 	 	 	(247	) 	 	 	(181	) 	 	 	(69	) 	
Fixed Annuities	  	 	20	 	 	 	30	 	 	 	78	 	 	 	69	 	 	 	24	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total U.S. Life Insurance segment	  	 	129	 	 	 	(115	) 	 	 	68	 	 	 	(55	) 	 	 	14	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Runoff segment	  	 	13	 	 	 	17	 	 	 	43	 	 	 	56	 	 	 	19	 	
Corporate and Other	  	 	(48	) 	 	 	(50	) 	 	 	(176	) 	 	 	(200	) 	 	 	(49	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income	  	$	173	 	 	$	24	 	 	$	317	 	 	$	420	 	 	$	132	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:	  				 				 				 				 				
Basic	  	$	0.53	 	 	$	(0.03	) 	 	$	0.35	 	 	$	0.68	 	 	$	0.83	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.52	 	 	$	(0.03	) 	 	$	0.35	 	 	$	0.67	 	 	$	0.82	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted operating income per share:	  				 				 				 				 				
Basic	  	$	0.34	 	 	$	0.05	 	 	$	0.63	 	 	$	0.84	 	 	$	0.26	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.34	 	 	$	0.05	 	 	$	0.62	 	 	$	0.82	 	 	$	0.26	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average common shares outstanding:	  				 				 				 				 				
Basic	  	 	505.6	 	 	 	503.5	 	 	 	505.2	 	 	 	502.9	 	 	 	505.6	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	 	512.5	 	 	 	510.4	 	 	 	511.6	 	 	 	509.7	 	 	 	511.5	 	

12 	For the three months ended December 31, 2020 and December 31, 2019, the twelve months ended December 31, 2020 and 2019 and the three months ended September 30, 2020, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $3 million, $(3) million, $(11) million, $(11) million and $1 million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $13 million, $9 million, $31 million, $11 million and $12 million, respectively.	
13 	For the twelve months ended December 31, 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.	
 
18

Condensed Consolidated Balance Sheets
(Amounts in millions)

 	  	December 31,	 	 	December 31,	 	
 	  	2020	 	 	2019	 	
 	  	(Unaudited)	 	 	 	 	
Assets	  				 				
Cash, cash equivalents, restricted cash and invested assets	  	$	80,567	 	 	$	75,226	 	
Deferred acquisition costs	  	 	1,529	 	 	 	1,836	 	
Intangible assets and goodwill	  	 	200	 	 	 	201	 	
Reinsurance recoverable, net	  	 	16,819	 	 	 	17,103	 	
Deferred tax and other assets	  	 	551	 	 	 	868	 	
Separate account assets	  	 	6,081	 	 	 	6,108	 	
	  	 	 	 	 	 	 	 	
Total assets	  	$	105,747	 	 	$	101,342	 	
	  	 	 	 	 	 	 	 	
Liabilities and equity	  				 				
Liabilities:	  				 				
Future policy benefits	  	$	42,695	 	 	$	40,384	 	
Policyholder account balances	  	 	21,503	 	 	 	22,217	 	
Liability for policy and contract claims	  	 	11,817	 	 	 	10,958	 	
Unearned premiums	  	 	1,968	 	 	 	1,893	 	
Other liabilities	  	 	1,718	 	 	 	1,386	 	
Non-recourse funding obligations	  	 	—  	 	 	 	311	 	
Long-term borrowings	  	 	3,548	 	 	 	3,277	 	
Separate account liabilities	  	 	6,081	 	 	 	6,108	 	
Liabilities related to discontinued operations	  	 	597	 	 	 	176	 	
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	89,927	 	 	 	86,710	 	
	  	 	 	 	 	 	 	 	
Equity:	  				 				
Common stock	  	 	1	 	 	 	1	 	
Additional paid-in capital	  	 	12,008	 	 	 	11,990	 	
Accumulated other comprehensive income (loss)	  	 	4,425	 	 	 	3,433	 	
Retained earnings	  	 	1,584	 	 	 	1,461	 	
Treasury stock, at cost	  	 	(2,700	) 	 	 	(2,700	) 	
	  	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	15,318	 	 	 	14,185	 	
Noncontrolling interests	  	 	502	 	 	 	447	 	
	  	 	 	 	 	 	 	 	
Total equity	  	 	15,820	 	 	 	14,632	 	
	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	105,747	 	 	$	101,342	 	

19

Impact of Foreign Exchange on Adjusted Operating Income (Loss) and Flow New Insurance Written14
Three months ended December 31, 2020

 	  	Percentages	 	 	Percentages	 	
 	  	Including Foreign	 	 	Excluding Foreign	 	
 	  	Exchange	 	 	Exchange15	 	
Australia MI:	  				 				
Adjusted operating income (loss)	  	 	(233	)% 	 	 	(225	)% 	
Flow new insurance written	  	 	37	% 	 	 	29	% 	
Flow new insurance written (4Q20 vs. 3Q20)	  	 	22	% 	 	 	18	% 	

14 	All percentages are comparing the fourth quarter of 2020 to the fourth quarter of 2019 unless otherwise stated.	
15 	The impact of foreign exchange was calculated using the comparable prior period exchange rates.	
 
20

Reconciliation of Reported Yield to Core Yield

 	  	Three	 	
 	  	months ended	 	
 	  	December 31,	 	 	September 30,	 	
 	  	2020	 	 	2020	 	
(Assets - amounts in billions)	  				 				
Reported Total Invested Assets and Cash	  	$	79.9	 	 	$	79.3	 	
Subtract:	  				 				
Securities lending	  	 	0.1	 	 	 	0.1	 	
Unrealized gains (losses)	  	 	10.7	 	 	 	10.0	 	
	  	 	 	 	 	 	 	 	
Adjusted End of Period Invested Assets and Cash	  	$	69.1	 	 	$	69.2	 	
	  	 	 	 	 	 	 	 	
Average Invested Assets and Cash Used in Reported and Core Yield Calculation	  	$	69.2	 	 	$	68.7	 	
	  	 	 	 	 	 	 	 	
(Income - amounts in millions)	  				 				
Reported Net Investment Income	  	$	854	 	 	$	827	 	
Subtract:	  				 				
Bond calls and commercial mortgage loan prepayments	  	 	40	 	 	 	23	 	
Other non-core items16	  	 	6	 	 	 	6	 	
	  	 	 	 	 	 	 	 	
Core Net Investment Income	  	$	808	 	 	$	798	 	
	  	 	 	 	 	 	 	 	
Reported Yield	  	 	4.94	% 	 	 	4.82	% 	
	  	 	 	 	 	 	 	 	
Core Yield	  	 	4.67	% 	 	 	4.65	% 	

 

16 	Includes cost basis adjustments on structured securities and various other immaterial items.	
 
21

Exhibit 99.2

	

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH 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	  	 	16-21	 		
Adjusted Operating Income (Loss) and Sales - Australia Mortgage Insurance Segment	  	 	23-26	 		
Adjusted Operating Income (Loss) - U.S. Life Insurance Segment	  	 	28-31	 		
Adjusted Operating Income (Loss) - Runoff Segment	  	 	33	 		
Adjusted Operating Loss - Corporate and Other Activities	  	 	35	 		
			
Additional Financial Data	  					
Investments Summary	  	 	37	 		
Fixed Maturity Securities Summary	  	 	38	 		
General Account U.S. GAAP Net Investment Income Yields	  	 	39	 		
Net Investment Gains (Losses), Net - Detail	  	 	40	 		
			
Reconciliations of Non-GAAP Measures	  					
Reconciliation of Operating Return On Equity (ROE)	  	 	42	 		
Reconciliation of Reported Yield to Core Yield	  	 	43	 		
			
Corporate Information	  					
Financial Strength Ratings	  	 	45	 		
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
FOURTH 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
FOURTH 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 40).
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 2020, the company repurchased $84 million 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 in the second and first quarters of 2020, 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 each of the fourth, 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 42 and 43 of this financial supplement.
 
4

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH 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 U.S. mortgage insurance business is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans the company insures. Insurance in-force for the company’s Australia mortgage insurance business 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
FOURTH QUARTER 2020
 
Financial Highlights
(amounts in millions, except per share data)

	Balance Sheet Data	  	December 31,
2020	 	 	September 30,
2020	 	 	June 30,
        2020        	 	 	March 31,
        2020        	 	 	December 31,
2019	 	
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	  	$	10,893	 	 	$	10,615	 	 	$	10,196	 	 	$	10,634	 	 	$	10,752	 		
Total accumulated other comprehensive income	  	 	4,425	 	 	 	4,141	 	 	 	4,447	 	 	 	3,815	 	 	 	3,433	 		
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Total Genworth Financial, Inc.’s stockholders’ equity	  	$	15,318	 	 	$	14,756	 	 	$	14,643	 	 	$	14,449	 	 	$	14,185	 		
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Book value per share	  	$	30.28	 	 	$	29.19	 	 	$	28.96	 	 	$	28.61	 	 	$	28.17	 		
Book value per share, excluding accumulated other comprehensive income	  	$	21.54	 	 	$	20.99	 	 	$	20.17	 	 	$	21.05	 	 	$	21.35	 		
Common shares outstanding as of the balance sheet date	  	 	505.8	 	 	 	505.6	 	 	 	505.6	 	 	 	505.1	 	 	 	503.5	 		
			
 	  	Twelve months ended	 		
	Twelve Month Rolling Average ROE	  	December 31,
2020	 	 	September 30,
2020	 	 	June 30,
        2020        	 	 	March 31,
2020	 	 	December 31,
2019	 	
U.S. GAAP Basis ROE	  	 	1.7	% 	 	 	(1.0)	% 	 	 	(4.8)	% 	 	 	1.0	% 	 	 	3.2	% 		
Operating ROE(1)	  	 	3.0	% 	 	 	1.6	% 	 	 	1.5	% 	 	 	3.3	% 	 	 	3.9	% 		
			
 	  	Three months ended	 		
	Quarterly Average ROE	  	December 31,
2020	 	 	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	
U.S. GAAP Basis ROE	  	 	9.9	% 	 	 	15.7	% 	 	 	(16.9)	% 	 	 	(2.5)	% 	 	 	(0.6)	% 		
Operating ROE(1)	  	 	6.4	% 	 	 	5.0	% 	 	 	(0.8)	% 	 	 	1.2	% 	 	 	0.9	% 		

	Basic and Diluted Shares	  	Three months ended
December 31, 2020	 	  	Twelve months ended
December 31, 2020	 	  	 	 	
Weighted-average common shares used in basic earnings per share calculations	  	 	505.6	 	  	 	505.2	 					
Potentially dilutive securities:	  				  								
Stock options, restricted stock units and stock appreciation rights	  	 	6.9	 	  	 	6.4	 					
	  	 	 	 	  	 	 	 					
Weighted-average common shares used in diluted earnings per share calculations	  	 	512.5	 	  	 	511.6	 	  	 	                                               	 		

(1) 	See page 42 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.	

 
6

 
Consolidated Quarterly Results

 
7

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2020

Consolidated Net Income (Loss) by Quarter
(amounts in millions, except per share amounts)

 	  	2020	 	 	2019	 	
 	  	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	 				 				 				 				 				 				 				 				 				
Premiums	  	$	1,042	 	 	$	1,034	 	 	$	1,019	 	 	$	1,015	 	 	$	4,110	 	 	$	1,033	 	 	$	1,015	 	 	$	1,001	 	 	$	988	 	 	$	4,037	 	
Net investment income	  	 	854	 	 	 	827	 	 	 	786	 	 	 	793	 	 	 	3,260	 	 	 	794	 	 	 	816	 	 	 	816	 	 	 	794	 	 	 	3,220	 	
Net investment gains (losses)	  	 	176	 	 	 	375	 	 	 	159	 	 	 	(152	) 	 	 	558	 	 	 	23	 	 	 	(2	) 	 	 	(46	) 	 	 	75	 	 	 	50	 	
Policy fees and other income	  	 	191	 	 	 	184	 	 	 	174	 	 	 	181	 	 	 	730	 	 	 	188	 	 	 	191	 	 	 	223	 	 	 	187	 	 	 	789	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	2,263	 	 	 	2,420	 	 	 	2,138	 	 	 	1,837	 	 	 	8,658	 	 	 	2,038	 	 	 	2,020	 	 	 	1,994	 	 	 	2,044	 	 	 	8,096	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	 				 				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	1,245	 	 	 	1,299	 	 	 	1,486	 	 	 	1,361	 	 	 	5,391	 	 	 	1,346	 	 	 	1,284	 	 	 	1,251	 	 	 	1,282	 	 	 	5,163	 	
Interest credited	  	 	132	 	 	 	137	 	 	 	139	 	 	 	141	 	 	 	549	 	 	 	138	 	 	 	146	 	 	 	146	 	 	 	147	 	 	 	577	 	
Acquisition and operating expenses, net of deferrals	  	 	267	 	 	 	249	 	 	 	223	 	 	 	249	 	 	 	988	 	 	 	249	 	 	 	247	 	 	 	229	 	 	 	237	 	 	 	962	 	
Amortization of deferred acquisition costs and intangibles	  	 	182	 	 	 	101	 	 	 	93	 	 	 	116	 	 	 	492	 	 	 	164	 	 	 	112	 	 	 	84	 	 	 	81	 	 	 	441	 	
Goodwill impairment	  	 	—  	 	 	 	—  	 	 	 	5	 	 	 	—  	 	 	 	5	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Interest expense	  	 	57	 	 	 	49	 	 	 	44	 	 	 	52	 	 	 	202	 	 	 	60	 	 	 	59	 	 	 	60	 	 	 	60	 	 	 	239	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	1,883	 	 	 	1,835	 	 	 	1,990	 	 	 	1,919	 	 	 	7,627	 	 	 	1,957	 	 	 	1,848	 	 	 	1,770	 	 	 	1,807	 	 	 	7,382	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	380	 	 	 	585	 	 	 	148	 	 	 	(82	) 	 	 	1,031	 	 	 	81	 	 	 	172	 	 	 	224	 	 	 	237	 	 	 	714	 	
Provision (benefit) for income taxes	  	 	84	 	 	 	150	 	 	 	46	 	 	 	(10	) 	 	 	270	 	 	 	26	 	 	 	34	 	 	 	66	 	 	 	69	 	 	 	195	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	296	 	 	 	435	 	 	 	102	 	 	 	(72	) 	 	 	761	 	 	 	55	 	 	 	138	 	 	 	158	 	 	 	168	 	 	 	519	 	
Income (loss) from discontinued operations, net of taxes(1)	  	 	(30	) 	 	 	1	 	 	 	(520	) 	 	 	—  	 	 	 	(549	) 	 	 	(31	) 	 	 	(80	) 	 	 	60	 	 	 	62	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	266	 	 	 	436	 	 	 	(418	) 	 	 	(72	) 	 	 	212	 	 	 	24	 	 	 	58	 	 	 	218	 	 	 	230	 	 	 	530	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	(1	) 	 	 	18	 	 	 	23	 	 	 	(6	) 	 	 	34	 	 	 	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	  	$	267	 	 	$	418	 	 	$	(441	) 	 	$	(66	) 	 	$	178	 	 	$	(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	  	$	297	 	 	$	417	 	 	$	79	 	 	$	(66	) 	 	$	727	 	 	$	36	 	 	$	128	 	 	$	143	 	 	$	148	 	 	$	455	 	
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders	  	 	(30	) 	 	 	1	 	 	 	(520	) 	 	 	—	 	 	 	(549	) 	 	 	(53	) 	 	 	(110	) 	 	 	25	 	 	 	26	 	 	 	(112	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	$	267	 	 	$	418	 	 	$	(441	) 	 	$	(66	) 	 	$	178	 	 	$	(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	  	$	0.59	 	 	$	0.83	 	 	$	0.16	 	 	$	(0.13	) 	 	$	1.44	 	 	$	0.07	 	 	$	0.25	 	 	$	0.29	 	 	$	0.29	 	 	$	0.90	 	
Diluted	  	$	0.58	 	 	$	0.82	 	 	$	0.15	 	 	$	(0.13	) 	 	$	1.42	 	 	$	0.07	 	 	$	0.25	 	 	$	0.28	 	 	$	0.29	 	 	$	0.89	 	
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share	  				 				 				 				 				 				 				 				 				 				
Basic	  	$	0.53	 	 	$	0.83	 	 	$	(0.87	) 	 	$	(0.13	) 	 	$	0.35	 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.35	 	 	$	0.68	 	
Diluted	  	$	0.52	 	 	$	0.82	 	 	$	(0.86	) 	 	$	(0.13	) 	 	$	0.35	 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.34	 	 	$	0.67	 	
Weighted-average common shares outstanding	  				 				 				 				 				 				 				 				 				 				
Basic	  	 	505.6	 	 	 	505.6	 	 	 	505.4	 	 	 	504.3	 	 	 	505.2	 	 	 	503.5	 	 	 	503.5	 	 	 	503.4	 	 	 	501.2	 	 	 	502.9	 	
Diluted(2)	  	 	512.5	 	 	 	511.5	 	 	 	512.5	 	 	 	504.3	 	 	 	511.6	 	 	 	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. In July 2020, the company reached a settlement agreement with AXA S.A. (AXA) regarding a dispute over payment protection insurance claims sold by the company’s former lifestyle protection insurance business and issued a secured promissory note to AXA. During the fourth quarter of 2020, the company recorded a loss of $26 million attributable to changes in foreign exchange rates, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate the company’s exposure to the installment payments to be made in British Pounds in 2022. 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, 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
FOURTH QUARTER 2020
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)
(amounts in millions, except per share amounts)

 	  	2020	 	 	2019	 	
 	  	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	$	267	 	 	$	418	 	 	$	(441	) 	 	$	(66	) 	 	$	178	 	 	$	(17	) 	 	$	18	 	 	$	168	 	 	$	174	 	 	$	343	 	
Add: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	(1	) 	 	 	18	 	 	 	23	 	 	 	(6	) 	 	 	34	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
Add: net income from discontinued operations attributable to noncontrolling interests	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	22	 	 	 	30	 	 	 	35	 	 	 	36	 	 	 	123	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME (LOSS)	  	 	266	 	 	 	436	 	 	 	(418	) 	 	 	(72	) 	 	 	212	 	 	 	24	 	 	 	58	 	 	 	218	 	 	 	230	 	 	 	530	 	
Less: income (loss) from discontinued operations, net of taxes	  	 	(30	) 	 	 	1	 	 	 	(520	) 	 	 	—  	 	 	 	(549	) 	 	 	(31	) 	 	 	(80	) 	 	 	60	 	 	 	62	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	296	 	 	 	435	 	 	 	102	 	 	 	(72	) 	 	 	761	 	 	 	55	 	 	 	138	 	 	 	158	 	 	 	168	 	 	 	519	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	(1	) 	 	 	18	 	 	 	23	 	 	 	(6	) 	 	 	34	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	 	297	 	 	 	417	 	 	 	79	 	 	 	(66	) 	 	 	727	 	 	 	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)	  	 	(160	) 	 	 	(362	) 	 	 	(131	) 	 	 	115	 	 	 	(538	) 	 	 	(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	 	 	 	1	 	 	 	3	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	
Taxes on adjustments	  	 	35	 	 	 	77	 	 	 	30	 	 	 	(29	) 	 	 	113	 	 	 	5	 	 	 	—  	 	 	 	(8	) 	 	 	14	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	173	 	 	$	132	 	 	$	(21	) 	 	$	33	 	 	$	317	 	 	$	24	 	 	$	123	 	 	$	178	 	 	$	95	 	 	$	420	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS):	  			 	 				 				 				 				 				 				 				 				 				
U.S. Mortgage Insurance segment	  	$	95	 	 	$	141	 	 	$	(3	) 	 	$	148	 	 	$	381	 	 	$	160	 	 	$	137	 	 	$	147	 	 	$	124	 	 	$	568	 	
Australia Mortgage Insurance segment	  	 	(16	) 	 	 	7	 	 	 	1	 	 	 	9	 	 	 	1	 	 	 	12	 	 	 	12	 	 	 	13	 	 	 	14	 	 	 	51	 	
U.S. Life Insurance segment:	  			 	 				 				 				 				 				 				 				 				 				
Long-Term Care Insurance	  	 	129	 	 	 	59	 	 	 	48	 	 	 	1	 	 	 	237	 	 	 	19	 	 	 	21	 	 	 	37	 	 	 	(20	) 	 	 	57	 	
Life Insurance	  	 	(20	) 	 	 	(69	) 	 	 	(81	) 	 	 	(77	) 	 	 	(247	) 	 	 	(164	) 	 	 	(25	) 	 	 	10	 	 	 	(2	) 	 	 	(181	) 	
Fixed Annuities	  	 	20	 	 	 	24	 	 	 	28	 	 	 	6	 	 	 	78	 	 	 	30	 	 	 	3	 	 	 	19	 	 	 	17	 	 	 	69	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total U.S. Life Insurance segment	  	 	129	 	 	 	14	 	 	 	(5	) 	 	 	(70	) 	 	 	68	 	 	 	(115	) 	 	 	(1	) 	 	 	66	 	 	 	(5	) 	 	 	(55	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Runoff segment	  	 	13	 	 	 	19	 	 	 	24	 	 	 	(13	) 	 	 	43	 	 	 	17	 	 	 	10	 	 	 	9	 	 	 	20	 	 	 	56	 	
Corporate and Other	  	 	(48	) 	 	 	(49	) 	 	 	(38	) 	 	 	(41	) 	 	 	(176	) 	 	 	(50	) 	 	 	(35	) 	 	 	(57	) 	 	 	(58	) 	 	 	(200	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	173	 	 	$	132	 	 	$	(21	) 	 	$	33	 	 	$	317	 	 	$	24	 	 	$	123	 	 	$	178	 	 	$	95	 	 	$	420	 	

Earnings (Loss) Per Share Data:	  				 				 				 				 				 				 				 				 				 				
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share	  				 				 				 				 				 				 				 				 				 				
Basic	  	$	0.53	 	 	$	0.83	 	 	$	(0.87	) 	 	$	(0.13	) 	 	$	0.35	 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.35	 	 	$	0.68	 	
Diluted	  	$	0.52	 	 	$	0.82	 	 	$	(0.86	) 	 	$	(0.13	) 	 	$	0.35	 	 	$	(0.03	) 	 	$	0.04	 	 	$	0.33	 	 	$	0.34	 	 	$	0.67	 	
Adjusted operating income (loss) per share	  				 				 				 				 				 				 				 				 				 				
Basic	  	$	0.34	 	 	$	0.26	 	 	$	(0.04	) 	 	$	0.07	 	 	$	0.63	 	 	$	0.05	 	 	$	0.25	 	 	$	0.35	 	 	$	0.19	 	 	$	0.84	 	
Diluted	  	$	0.34	 	 	$	0.26	 	 	$	(0.04	) 	 	$	0.07	 	 	$	0.62	 	 	$	0.05	 	 	$	0.24	 	 	$	0.35	 	 	$	0.19	 	 	$	0.82	 	
Weighted-average common shares outstanding	  				 				 				 				 				 				 				 				 				 				
Basic	  	 	505.6	 	 	 	505.6	 	 	 	505.4	 	 	 	504.3	 	 	 	505.2	 	 	 	503.5	 	 	 	503.5	 	 	 	503.4	 	 	 	501.2	 	 	 	502.9	 	
Diluted(3)	  	 	512.5	 	 	 	511.5	 	 	 	512.5	 	 	 	504.3	 	 	 	511.6	 	 	 	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 40 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
FOURTH QUARTER 2020
Consolidated Balance Sheets
(amounts in millions)

 	  	December 31,
2020	 	  	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	
ASSETS	  			 	  				 				 				 				
Investments:	  			 	  				 				 				 				
Fixed maturity securities available-for-sale, at fair value(1)	  	$	65,790	 	  	$	64,416	 	 	$	63,544	 	 	$	59,051	 	 	$	60,339	 	
Equity securities, at fair value	  	 	476	 	  	 	629	 	 	 	206	 	 	 	188	 	 	 	239	 	
Commercial mortgage loans(2)	  	 	6,774	 	  	 	6,911	 	 	 	6,945	 	 	 	6,944	 	 	 	6,976	 	
Less: Allowance for credit losses	  	 	(31	) 	  	 	(31	) 	 	 	(28	) 	 	 	(29	) 	 	 	(13	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial mortgage loans, net	  	 	6,743	 	  	 	6,880	 	 	 	6,917	 	 	 	6,915	 	 	 	6,963	 	
Policy loans	  	 	1,978	 	  	 	2,153	 	 	 	2,182	 	 	 	2,052	 	 	 	2,058	 	
Other invested assets	  	 	2,253	 	  	 	2,402	 	 	 	2,473	 	 	 	2,465	 	 	 	1,632	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total investments	  	 	77,240	 	  	 	76,480	 	 	 	75,322	 	 	 	70,671	 	 	 	71,231	 	
Cash, cash equivalents and restricted cash	  	 	2,656	 	  	 	2,780	 	 	 	2,597	 	 	 	2,483	 	 	 	3,341	 	
Accrued investment income	  	 	671	 	  	 	650	 	 	 	601	 	 	 	707	 	 	 	654	 	
Deferred acquisition costs	  	 	1,529	 	  	 	1,623	 	 	 	1,718	 	 	 	1,898	 	 	 	1,836	 	
Intangible assets and goodwill	  	 	200	 	  	 	209	 	 	 	223	 	 	 	263	 	 	 	201	 	
Reinsurance recoverable	  	 	16,864	 	  	 	16,832	 	 	 	16,944	 	 	 	17,122	 	 	 	17,103	 	
Less: Allowance for credit losses	  	 	(45	) 	  	 	(44	) 	 	 	(44	) 	 	 	(42	) 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reinsurance recoverable, net	  	 	16,819	 	  	 	16,788	 	 	 	16,900	 	 	 	17,080	 	 	 	17,103	 	
Other assets	  	 	444	 	  	 	445	 	 	 	454	 	 	 	456	 	 	 	443	 	
Deferred tax asset	  	 	107	 	  	 	250	 	 	 	286	 	 	 	319	 	 	 	425	 	
Separate account assets	  	 	6,081	 	  	 	5,700	 	 	 	5,536	 	 	 	4,967	 	 	 	6,108	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	105,747	 	  	$	104,925	 	 	$	103,637	 	 	$	98,844	 	 	$	101,342	 	

 

(1) 	Amortized cost of $55,676 million, $55,252 million, $54,834 million and $54,136 million as of December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively, and allowance for credit losses of $4 million, $5 million, $7 million and $— as of December 31, 2020, 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 December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019.	
 
10

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

 	  	December 31,
2020	 	  	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 	
LIABILITIES AND EQUITY	  			 	  				 				 				 				
Liabilities:	  			 	  				 				 				 				
Future policy benefits	  	$	42,695	 	  	$	41,995	 	 	$	41,463	 	 	$	39,339	 	 	$	40,384	 	
Policyholder account balances	  	 	21,503	 	  	 	22,731	 	 	 	22,921	 	 	 	22,313	 	 	 	22,217	 	
Liability for policy and contract claims	  	 	11,817	 	  	 	11,373	 	 	 	11,280	 	 	 	11,132	 	 	 	10,958	 	
Unearned premiums	  	 	1,968	 	  	 	1,846	 	 	 	1,804	 	 	 	1,722	 	 	 	1,893	 	
Other liabilities(1)	  	 	1,718	 	  	 	1,913	 	 	 	2,033	 	 	 	1,645	 	 	 	1,386	 	
Non-recourse funding obligations	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	311	 	
Long-term borrowings	  	 	3,548	 	  	 	3,570	 	 	 	2,817	 	 	 	2,851	 	 	 	3,277	 	
Separate account liabilities	  	 	6,081	 	  	 	5,700	 	 	 	5,536	 	 	 	4,967	 	 	 	6,108	 	
Liabilities related to discontinued operations(1),(2)	  	 	597	 	  	 	565	 	 	 	695	 	 	 	41	 	 	 	176	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	89,927	 	  	 	89,693	 	 	 	88,549	 	 	 	84,010	 	 	 	86,710	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity:	  			 	  				 				 				 				
Common stock	  	 	1	 	  	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	
Additional paid-in capital	  	 	12,008	 	  	 	11,997	 	 	 	11,996	 	 	 	11,993	 	 	 	11,990	 	
Accumulated other comprehensive income (loss)	  	 	4,425	 	  	 	4,141	 	 	 	4,447	 	 	 	3,815	 	 	 	3,433	 	
Retained earnings	  	 	1,584	 	  	 	1,317	 	 	 	899	 	 	 	1,340	 	 	 	1,461	 	
Treasury stock, at cost	  	 	(2,700	) 	  	 	(2,700	) 	 	 	(2,700	) 	 	 	(2,700	) 	 	 	(2,700	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	15,318	 	  	 	14,756	 	 	 	14,643	 	 	 	14,449	 	 	 	14,185	 	
Noncontrolling interests	  	 	502	 	  	 	476	 	 	 	445	 	 	 	385	 	 	 	447	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	15,820	 	  	 	15,232	 	 	 	15,088	 	 	 	14,834	 	 	 	14,632	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	105,747	 	  	$	104,925	 	 	$	103,637	 	 	$	98,844	 	 	$	101,342	 	

 

(1) 	Certain liability balances have been reclassified to conform to the current period presentation.    	
(2) 	Liabilities related to discontinued operations as of December 31, 2020, 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.    	

 
11

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

 	  	December 31, 2020	 	
 	  	U.S.
Mortgage
Insurance	 	  	Australia
Mortgage
Insurance	 	  	U.S. Life
Insurance	 	 	Runoff	 	  	Corporate
and
Other(1)	 	 	Total	 	
ASSETS	  				  				  				 				  				 				
Cash and investments	  	$	5,528	 	  	$	2,650	 	  	$	67,149	 	 	$	2,786	 	  	$	2,454	 	 	$	80,567	 	
Deferred acquisition costs and intangible assets	  	 	44	 	  	 	85	 	  	 	1,448	 	 	 	142	 	  	 	10	 	 	 	1,729	 	
Reinsurance recoverable, net	  	 	—  	 	  	 	—  	 	  	 	16,122	 	 	 	697	 	  	 	—  	 	 	 	16,819	 	
Deferred tax and other assets	  	 	55	 	  	 	149	 	  	 	(48	) 	 	 	29	 	  	 	366	 	 	 	551	 	
Separate account assets	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	6,081	 	  	 	—  	 	 	 	6,081	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total assets	  	$	5,627	 	  	$	2,884	 	  	$	84,671	 	 	$	9,735	 	  	$	2,830	 	 	$	105,747	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	  				  				  				 				  				 				
Liabilities:	  				  				  				 				  				 				
Future policy benefits	  	$	—  	 	  	$	—  	 	  	$	42,693	 	 	$	2	 	  	$	—  	 	 	$	42,695	 	
Policyholder account balances	  	 	—  	 	  	 	—  	 	  	 	18,385	 	 	 	3,118	 	  	 	—  	 	 	 	21,503	 	
Liability for policy and contract claims	  	 	555	 	  	 	331	 	  	 	10,908	 	 	 	12	 	  	 	11	 	 	 	11,817	 	
Unearned premiums	  	 	307	 	  	 	1,193	 	  	 	465	 	 	 	3	 	  	 	—  	 	 	 	1,968	 	
Other liabilities	  	 	121	 	  	 	205	 	  	 	715	 	 	 	42	 	  	 	635	 	 	 	1,718	 	
Borrowings	  	 	738	 	  	 	145	 	  	 	—  	 	 	 	—  	 	  	 	2,665	 	 	 	3,548	 	
Separate account liabilities	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	6,081	 	  	 	—  	 	 	 	6,081	 	
Liabilities related to discontinued operations	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	597	 	 	 	597	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,721	 	  	 	1,874	 	  	 	73,166	 	 	 	9,258	 	  	 	3,908	 	 	 	89,927	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Equity:	  				  				  				 				  				 				
Allocated equity, excluding accumulated other comprehensive income (loss)	  	 	3,696	 	  	 	443	 	  	 	7,352	 	 	 	437	 	  	 	(1,035	) 	 	 	10,893	 	
Allocated accumulated other comprehensive income (loss)	  	 	210	 	  	 	65	 	  	 	4,153	 	 	 	40	 	  	 	(43	) 	 	 	4,425	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total Genworth Financial, Inc.’s stockholders’ equity	  	 	3,906	 	  	 	508	 	  	 	11,505	 	 	 	477	 	  	 	(1,078	) 	 	 	15,318	 	
Noncontrolling interests	  	 	—  	 	  	 	502	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	502	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total equity	  	 	3,906	 	  	 	1,010	 	  	 	11,505	 	 	 	477	 	  	 	(1,078	) 	 	 	15,820	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	5,627	 	  	$	2,884	 	  	$	84,671	 	 	$	9,735	 	  	$	2,830	 	 	$	105,747	 	

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

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH 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.	
 
13

GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH 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 September 30, 2020	  	$	33	 	 	$	38	 	 	$	2,794	 	 	$	154	 	 	$	3,019	 	
Costs deferred	  	 	4	 	 	 	3	 	 	 	(1	) 	 	 	—  	 	 	 	6	 	
Amortization, net of interest accretion(1)	  	 	(8	) 	 	 	(3	) 	 	 	(164	) 	 	 	(3	) 	 	 	(178	) 	
Impact of foreign currency translation	  	 	—  	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unamortized balance as of December 31, 2020	  	 	29	 	 	 	42	 	 	 	2,629	 	 	 	151	 	 	 	2,851	 	
Effect of accumulated net unrealized investment (gains) losses	  	 	—  	 	 	 	—  	 	 	 	(1,310	) 	 	 	(12	) 	 	 	(1,322	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2020	  	$	29	 	 	$	42	 	 	$	1,319	 	 	$	139	 	 	$	1,529	 	

(1) 	Amortization, net of interest accretion, includes a $63 million DAC impairment in the company’s universal life insurance products due principally to lower estimated future gross profits.	
 
14

 
U.S. Mortgage Insurance Segment

 
15

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

 	 	2020	 	 	2019	 	
 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	 			 	 				 				 				 				 				 				 				 				 				
Premiums	 	$	251	 	 	$	251	 	 	$	243	 	 	$	226	 	 	$	971	 	 	$	237	 	 	$	219	 	 	$	206	 	 	$	194	 	 	$	856	 	
Net investment income	 	 	35	 	 	 	34	 	 	 	31	 	 	 	33	 	 	 	133	 	 	 	30	 	 	 	31	 	 	 	28	 	 	 	28	 	 	 	117	 	
Net investment gains (losses)	 	 	(1	) 	 	 	(2	) 	 	 	(1	) 	 	 	—  	 	 	 	(4	) 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	
Policy fees and other income	 	 	2	 	 	 	1	 	 	 	1	 	 	 	2	 	 	 	6	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	4	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	287	 	 	 	284	 	 	 	274	 	 	 	261	 	 	 	1,106	 	 	 	269	 	 	 	251	 	 	 	235	 	 	 	223	 	 	 	978	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	 			 	 				 				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	 	 	89	 	 	 	45	 	 	 	228	 	 	 	19	 	 	 	381	 	 	 	11	 	 	 	23	 	 	 	—  	 	 	 	16	 	 	 	50	 	
Acquisition and operating expenses, net of deferrals	 	 	55	 	 	 	54	 	 	 	47	 	 	 	50	 	 	 	206	 	 	 	50	 	 	 	51	 	 	 	44	 	 	 	46	 	 	 	191	 	
Amortization of deferred acquisition costs and intangibles	 	 	10	 	 	 	3	 	 	 	4	 	 	 	4	 	 	 	21	 	 	 	4	 	 	 	3	 	 	 	4	 	 	 	4	 	 	 	15	 	
Interest expense	 	 	12	 	 	 	6	 	 	 	—  	 	 	 	—  	 	 	 	18	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	 	 	166	 	 	 	108	 	 	 	279	 	 	 	73	 	 	 	626	 	 	 	65	 	 	 	77	 	 	 	48	 	 	 	66	 	 	 	256	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	 	 	121	 	 	 	176	 	 	 	(5	) 	 	 	188	 	 	 	480	 	 	 	204	 	 	 	174	 	 	 	187	 	 	 	157	 	 	 	722	 	
Provision (benefit) for income taxes	 	 	26	 	 	 	37	 	 	 	(1	) 	 	 	40	 	 	 	102	 	 	 	43	 	 	 	37	 	 	 	40	 	 	 	33	 	 	 	153	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	 	 	95	 	 	 	139	 	 	 	(4	) 	 	 	148	 	 	 	378	 	 	 	161	 	 	 	137	 	 	 	147	 	 	 	124	 	 	 	569	 	
	 										
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	 			 	 				 				 				 				 				 				 				 				 				
Net investment (gains) losses	 	 	1	 	 	 	2	 	 	 	1	 	 	 	—  	 	 	 	4	 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	
Taxes on adjustments	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	 	$	95	 	 	$	141	 	 	$	(3	) 	 	$	148	 	 	$	381	 	 	$	160	 	 	$	137	 	 	$	147	 	 	$	124	 	 	$	568	 	

SALES:	 				 				 				 				 				 				 				 				 				 				
Primary New Insurance Written (NIW)	 	$	27,000	 	 	$	26,600	 	 	$	28,400	 	 	$	17,900	 	 	$	99,900	 	 	$	18,100	 	 	$	18,900	 	 	$	15,800	 	 	$	9,600	 	 	$	62,400	 	
 
16

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

 	 	2020	 	 	2019	 	
 	 	4Q	 	 	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	 	 	Primary
NIW	 	 	% of
Primary
NIW	 	
Product	 				 			 	 				 				 				 				 				 				 				 				 				 				 				 				 				 				
Monthly	 	$	24,700	 	 	 	92	% 	 	$	23,400	 	 	 	88	% 	 	$	25,800	 	 	 	91	% 	 	$	16,200	 	 	 	91	% 	 	$	16,200	 	 	 	89	% 	 	$	16,500	 	 	 	87	% 	 	$	13,800	 	 	 	87	% 	 	$	8,200	 	 	 	85	% 	
Single	 	 	2,200	 	 	 	8	 	 	 	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	 	 	 	—  	 	 	 	100	 	 	 	—  	 	 	 	200	 	 	 	1	 	 	 	100	 	 	 	1	 	 	 	300	 	 	 	2	 	 	 	200	 	 	 	1	 	 	 	100	 	 	 	1	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	 	$	27,000	 	 	 	100	% 	 	$	26,600	 	 	 	100	% 	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Origination	 				 			 	 				 				 				 				 				 				 				 				 				 				 				 				 				 				
Purchase	 	$	17,800	 	 	 	66	% 	 	$	20,000	 	 	 	75	% 	 	$	17,400	 	 	 	61	% 	 	$	12,000	 	 	 	67	% 	 	$	12,900	 	 	 	71	% 	 	$	14,900	 	 	 	79	% 	 	$	13,900	 	 	 	88	% 	 	$	8,600	 	 	 	90	% 	
Refinance	 	 	9,200	 	 	 	34	 	 	 	6,600	 	 	 	25	 	 	 	11,000	 	 	 	39	 	 	 	5,900	 	 	 	33	 	 	 	5,200	 	 	 	29	 	 	 	4,000	 	 	 	21	 	 	 	1,900	 	 	 	12	 	 	 	1,000	 	 	 	10	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	 	$	27,000	 	 	 	100	% 	 	$	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	 	$	10,500	 	 	 	39	% 	 	$	11,300	 	 	 	43	% 	 	$	12,300	 	 	 	43	% 	 	$	7,500	 	 	 	42	% 	 	$	7,400	 	 	 	41	% 	 	$	7,600	 	 	 	40	% 	 	$	6,100	 	 	 	39	% 	 	$	3,700	 	 	 	39	% 	
740-759	 	 	4,300	 	 	 	16	 	 	 	4,100	 	 	 	15	 	 	 	4,800	 	 	 	17	 	 	 	3,200	 	 	 	18	 	 	 	3,200	 	 	 	18	 	 	 	3,300	 	 	 	17	 	 	 	2,500	 	 	 	16	 	 	 	1,600	 	 	 	17	 	
720-739	 	 	4,000	 	 	 	15	 	 	 	3,500	 	 	 	13	 	 	 	4,200	 	 	 	15	 	 	 	2,600	 	 	 	14	 	 	 	2,800	 	 	 	15	 	 	 	2,700	 	 	 	14	 	 	 	2,300	 	 	 	15	 	 	 	1,400	 	 	 	15	 	
700-719	 	 	3,600	 	 	 	13	 	 	 	3,100	 	 	 	12	 	 	 	3,300	 	 	 	11	 	 	 	2,200	 	 	 	12	 	 	 	2,300	 	 	 	13	 	 	 	2,300	 	 	 	12	 	 	 	2,100	 	 	 	13	 	 	 	1,200	 	 	 	12	 	
680-699	 	 	2,700	 	 	 	10	 	 	 	2,400	 	 	 	9	 	 	 	2,200	 	 	 	8	 	 	 	1,500	 	 	 	8	 	 	 	1,500	 	 	 	8	 	 	 	1,800	 	 	 	10	 	 	 	1,600	 	 	 	10	 	 	 	900	 	 	 	9	 	
660-679(2)	 	 	1,100	 	 	 	4	 	 	 	1,300	 	 	 	5	 	 	 	900	 	 	 	3	 	 	 	500	 	 	 	3	 	 	 	500	 	 	 	3	 	 	 	700	 	 	 	4	 	 	 	600	 	 	 	4	 	 	 	400	 	 	 	4	 	
640-659	 	 	600	 	 	 	2	 	 	 	600	 	 	 	2	 	 	 	500	 	 	 	2	 	 	 	300	 	 	 	2	 	 	 	300	 	 	 	2	 	 	 	300	 	 	 	2	 	 	 	400	 	 	 	2	 	 	 	300	 	 	 	3	 	
620-639	 	 	200	 	 	 	1	 	 	 	300	 	 	 	1	 	 	 	200	 	 	 	1	 	 	 	100	 	 	 	1	 	 	 	100	 	 	 	—  	 	 	 	200	 	 	 	1	 	 	 	200	 	 	 	1	 	 	 	100	 	 	 	1	 	
<620	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	 	$	27,000	 	 	 	100	% 	 	$	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	 	$	2,900	 	 	 	11	% 	 	$	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%	 	 	11,100	 	 	 	41	 	 	 	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%	 	 	8,100	 	 	 	30	 	 	 	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	 	 	4,900	 	 	 	18	 	 	 	4,100	 	 	 	15	 	 	 	4,800	 	 	 	17	 	 	 	2,900	 	 	 	16	 	 	 	2,600	 	 	 	14	 	 	 	2,500	 	 	 	13	 	 	 	1,700	 	 	 	11	 	 	 	1,100	 	 	 	11	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	 	$	27,000	 	 	 	100	% 	 	$	26,600	 	 	 	100	% 	 	$	28,400	 	 	 	100	% 	 	$	17,900	 	 	 	100	% 	 	$	18,100	 	 	 	100	% 	 	$	18,900	 	 	 	100	% 	 	$	15,800	 	 	 	100	% 	 	$	9,600	 	 	 	100	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt-To-Income Ratio	 				 			 	 				 				 				 				 				 				 				 				 				 				 				 				 				 				
45.01% and above	 	$	3,100	 	 	 	11	% 	 	$	3,100	 	 	 	12	% 	 	$	4,000	 	 	 	14	% 	 	$	3,500	 	 	 	20	% 	 	$	3,800	 	 	 	21	% 	 	$	4,000	 	 	 	21	% 	 	$	3,600	 	 	 	23	% 	 	$	2,200	 	 	 	23	% 	
38.01% to 45.00%	 	 	10,200	 	 	 	38	 	 	 	9,900	 	 	 	37	 	 	 	9,600	 	 	 	34	 	 	 	6,000	 	 	 	33	 	 	 	6,100	 	 	 	34	 	 	 	6,300	 	 	 	33	 	 	 	5,500	 	 	 	35	 	 	 	3,400	 	 	 	35	 	
38.00% and below	 	 	13,700	 	 	 	51	 	 	 	13,600	 	 	 	51	 	 	 	14,800	 	 	 	52	 	 	 	8,400	 	 	 	47	 	 	 	8,200	 	 	 	45	 	 	 	8,600	 	 	 	46	 	 	 	6,700	 	 	 	42	 	 	 	4,000	 	 	 	42	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Primary	 	$	27,000	 	 	 	100	% 	 	$	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
FOURTH QUARTER 2020
 
Other Metrics—U.S. Mortgage Insurance Segment
(dollar amounts in millions)

 	  	2020	 	 	2019	 	
 	  	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Net Premiums Written	  	$	229	 	 	$	240	 	 	$	217	 	 	$	208	 	 	$	894	 	 	$	208	 	 	$	213	 	 	$	204	 	 	$	193	 	 	$	818	 	
	 										
Primary Insurance In-Force(1)	  	$	207,900	 	 	$	203,000	 	 	$	197,000	 	 	$	188,000	 	 				 	$	181,800	 	 	$	176,100	 	 	$	168,000	 	 	$	160,500	 	 				
	 										
Risk In-Force	  			 	 				 				 				 				 				 				 				 				 				
Primary(2)	  	$	52,475	 	 	$	51,393	 	 	$	49,868	 	 	$	47,740	 	 				 	$	46,246	 	 	$	44,903	 	 	$	42,936	 	 	$	41,040	 	 				
Pool	  	 	146	 	 	 	156	 	 	 	169	 	 	 	179	 	 				 	 	188	 	 	 	201	 	 	 	210	 	 	 	219	 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Risk In-Force	  	$	52,621	 	 	$	51,549	 	 	$	50,037	 	 	$	47,919	 	 				 	$	46,434	 	 	$	45,104	 	 	$	43,146	 	 	$	41,259	 	 				

Expense Ratio (Net Earned Premiums)(3)	  	 	26	% 	 	 	23	% 	 	 	21	% 	 	 	24	% 	 	 	23	% 	 	 	23	% 	 	 	24	% 	 	 	24	% 	 	 	25	% 	 	 	24	% 	
	 										
Primary Persistency(1)	  	 	57	% 	 	 	59	% 	 	 	59	% 	 	 	74	% 	 	 	59	% 	 	 	72	% 	 	 	75	% 	 	 	79	% 	 	 	84	% 	 	 	76	% 	
	 										
Combined Risk To Capital Ratio(4)	  	 	12.1:1	 	 	 	12.1:1	 	 	 	12.0:1	 	 	 	12.2:1	 	 				 	 	12.2:1	 	 	 	11.9:1	 	 	 	11.8:1	 	 	 	11.9:1	 	 				
	 										
GMICO Risk To Capital Ratio(4),(5)	  	 	12.3:1	 	 	 	12.3:1	 	 	 	12.2:1	 	 	 	12.4:1	 	 				 	 	12.5:1	 	 	 	12.1:1	 	 	 	12.1:1	 	 	 	12.1:1	 	 				
	 										
PMIERs Available Assets(6)	  	$	4,588	 	 	$	4,451	 	 	$	4,218	 	 	$	3,974	 	 				 	$	3,811	 	 	$	3,833	 	 	$	3,600	 	 	$	3,457	 	 				
	 										
PMIERs Required Assets(6)	  	$	3,359	 	 	$	3,377	 	 	$	2,943	 	 	$	2,803	 	 				 	$	2,754	 	 	$	2,972	 	 	$	2,927	 	 	$	2,809	 	 				
	 										
Available Assets Above PMIERs Requirements(6)	  	$	1,229	 	 	$	1,074	 	 	$	1,275	 	 	$	1,171	 	 				 	$	1,057	 	 	$	861	 	 	$	673	 	 	$	648	 	 				
	 										
PMIERs Sufficiency Ratio(6)	  	 	137	% 	 	 	132	% 	 	 	143	% 	 	 	142	% 	 				 	 	138	% 	 	 	129	% 	 	 	123	% 	 	 	123	% 	 				
	 										
Average Primary Loan Size (in thousands)(1)	  	$	225	 	 	$	222	 	 	$	220	 	 	$	217	 	 				 	$	214	 	 	$	211	 	 	$	208	 	 	$	205	 	 				
The expense ratio included above was calculated using whole dollars and may be different than the ratio calculated using the rounded numbers included herein.

(1) 	In the fourth quarter of 2020, the company revised the presentation of its U.S. mortgage insurance segment’s primary insurance in-force to represent aggregate unpaid principal balance for loans the company insures. Prior period amounts have been reclassified to conform to the current period presentation. Original loan balances are primarily used to determine premiums.	
(2) 	Primary risk in-force represents risk on current loan balances as provided by servicers, lenders and investors and conforms to the presentation under the Private Mortgage Insurer Eligibility Requirements (PMIERs).	
(3) 	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.	
(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) 	Genworth Mortgage Insurance Corporation (GMICO), the company’s principal U.S. mortgage insurance subsidiary.	
(6) 	The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within the published PMIERs. The current period PMIERs sufficiency 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). 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 GMICO to maintain 115% of published PMIERs minimum required assets among other restrictions.	
 
18

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

 
																																									
 	  	2020	 	 	2019	 	
 	  	4Q	 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Average Paid Claim (in thousands)	  	$	47.2	 	  	$	55.6	 	 	$	47.1	 	 	$	45.0	 	 				 	$	39.2	 	 	$	44.2	 	 	$	45.4	 	 	$	49.0	 	 				
	 										
Average Reserve Per Primary Delinquency (in thousands)(1)	  	$	11.5	 	  	$	8.8	 	 	$	7.1	 	 	$	13.1	 	 				 	$	12.5	 	 	$	13.8	 	 	$	14.7	 	 	$	15.5	 	 				
	 										
Reserves:	  			 	  				 				 				 				 				 				 				 				 				
Primary direct case	  	$	517	 	  	$	436	 	 	$	379	 	 	$	202	 	 				 	$	205	 	 	$	217	 	 	$	223	 	 	$	247	 	 				
All other(2)	  	 	38	 	  	 	38	 	 	 	60	 	 	 	28	 	 				 	 	28	 	 	 	30	 	 	 	31	 	 	 	33	 	 				
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total Reserves	  	$	555	 	  	$	474	 	 	$	439	 	 	$	230	 	 				 	$	233	 	 	$	247	 	 	$	254	 	 	$	280	 	 				

Beginning Reserves	  	$	474	 	  	$	439	 	 	$	230	 	 	$	233	 	 	$	233	 	 	$	247	 	 	$	254	 	 	$	280	 	 	$	296	 	 	$	296	 	
Paid claims	  	 	(8	) 	  	 	(10	) 	 	 	(19	) 	 	 	(22	) 	 	 	(59	) 	 	 	(25	) 	 	 	(30	) 	 	 	(26	) 	 	 	(32	) 	 	 	(113	) 	
Increase in reserves	  	 	89	 	  	 	45	 	 	 	228	 	 	 	19	 	 	 	381	 	 	 	11	 	 	 	23	 	 	 	—  	 	 	 	16	 	 	 	50	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending Reserves	  	$	555	 	  	$	474	 	 	$	439	 	 	$	230	 	 	$	555	 	 	$	233	 	 	$	247	 	 	$	254	 	 	$	280	 	 	$	233	 	

Loss Ratio(3)	  	 	35	% 	  	 	18	% 	 	 	94	% 	 	 	8	% 	 	 	39	% 	 	 	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) 	Primary direct case reserves divided by primary delinquency count.	
(2) 	Other includes loss adjustment expenses, pool, incurred but not reported and reinsurance reserves.	
(3) 	The ratio of benefits and other changes in policy reserves to net earned premiums. The company recorded a favorable reserve adjustment of $13 million and a favorable adjustment to net earned premiums of $14 million in the fourth quarter of 2019, which reduced the loss ratio by six percentage points for the three months ended December 31, 2019. The company also recorded a favorable reserve adjustment of $10 million in the second quarter of 2019, which reduced the loss ratio by five percentage points for the three months ended June 30, 2019. These adjustments reduced the loss ratio by three percentage points for the twelve months ended December 31, 2019.	

 
19

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

 	  	2020	 	 	2019	 		
 	  	4Q	 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 		
Primary Loans	  			 	  				 				 				 				 				 				 				 				 					
Primary loans in-force	  	 	924,624	 	  	 	913,974	 	 	 	896,232	 	 	 	868,111	 	 				 	 	851,070	 	 	 	833,215	 	 	 	808,428	 	 	 	782,471	 	 					
Primary delinquent loans	  	 	44,904	 	  	 	49,692	 	 	 	53,587	 	 	 	15,417	 	 				 	 	16,392	 	 	 	15,758	 	 	 	15,227	 	 	 	15,934	 	 					
Primary delinquency rate	  	 	4.86	% 	  	 	5.44	% 	 	 	5.98	% 	 	 	1.78	% 	 				 	 	1.93	% 	 	 	1.89	% 	 	 	1.88	% 	 	 	2.04	% 	 					
	 											
Beginning Number of Primary Delinquencies	  	 	49,692	 	  	 	53,587	 	 	 	15,417	 	 	 	16,392	 	 	 	16,392	 	 	 	15,758	 	 	 	15,227	 	 	 	15,934	 	 	 	16,860	 	 	 	16,860	 		
New delinquencies	  	 	11,923	 	  	 	16,664	 	 	 	48,373	 	 	 	8,114	 	 	 	85,074	 	 	 	8,659	 	 	 	8,547	 	 	 	7,606	 	 	 	8,424	 	 	 	33,236	 		
Delinquency cures	  	 	(16,548	) 	  	 	(20,404	) 	 	 	(9,795	) 	 	 	(8,649	) 	 	 	(55,396	) 	 	 	(7,464	) 	 	 	(7,382	) 	 	 	(7,791	) 	 	 	(8,726	) 	 	 	(31,363	) 		
Paid claims	  	 	(152	) 	  	 	(152	) 	 	 	(404	) 	 	 	(440	) 	 	 	(1,148	) 	 	 	(558	) 	 	 	(631	) 	 	 	(515	) 	 	 	(619	) 	 	 	(2,323	) 		
Rescissions and claim denials	  	 	(11	) 	  	 	(3	) 	 	 	(4	) 	 	 	—  	 	 	 	(18	) 	 	 	(3	) 	 	 	(3	) 	 	 	(7	) 	 	 	(5	) 	 	 	(18	) 		
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Ending Number of Primary Delinquencies	  	 	44,904	 	  	 	49,692	 	 	 	53,587	 	 	 	15,417	 	 	 	44,904	 	 	 	16,392	 	 	 	15,758	 	 	 	15,227	 	 	 	15,934	 	 	 	16,392	 		
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Composition of Cures	  			 	  				 				 				 				 				 				 				 				 					
Reported delinquent and cured-intraquarter	  	 	1,433	 	  	 	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	  	 	5,567	 	  	 	13,022	 	 	 	4,522	 	 	 	4,850	 	 				 	 	4,390	 	 	 	4,110	 	 	 	4,510	 	 	 	4,786	 	 					
4 - 11 payments	  	 	9,347	 	  	 	5,239	 	 	 	1,122	 	 	 	1,389	 	 				 	 	1,167	 	 	 	1,215	 	 	 	1,417	 	 	 	1,323	 	 					
12 payments or more	  	 	201	 	  	 	204	 	 	 	159	 	 	 	174	 	 				 	 	207	 	 	 	239	 	 	 	243	 	 	 	278	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	 	16,548	 	  	 	20,404	 	 	 	9,795	 	 	 	8,649	 	 				 	 	7,464	 	 	 	7,382	 	 	 	7,791	 	 	 	8,726	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Primary Delinquencies by Missed Payment Status	  			 	  				 				 				 				 				 				 				 				 					
3 payments or less	  	 	10,484	 	  	 	13,904	 	 	 	43,158	 	 	 	7,650	 	 				 	 	8,618	 	 	 	8,294	 	 	 	7,704	 	 	 	7,768	 	 					
4 - 11 payments	  	 	30,324	 	  	 	32,366	 	 	 	7,448	 	 	 	4,909	 	 				 	 	4,876	 	 	 	4,360	 	 	 	4,197	 	 	 	4,700	 	 					
12 payments or more	  	 	4,096	 	  	 	3,422	 	 	 	2,981	 	 	 	2,858	 	 				 	 	2,898	 	 	 	3,104	 	 	 	3,326	 	 	 	3,466	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Primary Delinquencies	  	 	44,904	 	  	 	49,692	 	 	 	53,587	 	 	 	15,417	 	 				 	 	16,392	 	 	 	15,758	 	 	 	15,227	 	 	 	15,934	 	 					

										
 	  	December 31, 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	  	$	43	 	  	$	549	 	 	 	8	% 	 				 				 				 				 				 				 					
4 - 11 payments in default	  	 	331	 	  	 	1,853	 	 	 	18	% 	 				 				 				 				 				 				 					
12 payments or more in default	  	 	143	 	  	 	204	 	 	 	70	% 	 				 				 				 				 				 				 					
	  	 	 	 	  	 	 	 	 				 				 				 				 				 				 				 					
Total	  	$	517	 	  	$	2,606	 	 	 	20	% 	 				 				 				 				 				 				 					

 	  	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
FOURTH QUARTER 2020
 
Portfolio Quality Metrics—U.S. Mortgage Insurance Segment
(amounts in millions)

 	  	December 31, 2020	 		
	Policy Year	  	Average
Rate(1)	 	 	% of Direct Case
Reserves(2)	 	 	Primary Insurance
In-Force	 	  	% of Total	 	 	Primary Risk
In-Force	 	  	% of Total	 	 	Delinquency
Rate	 	
2004 and prior	  	 	6.12	% 	 	 	3	% 	 	$	708	 	  	 	—  	% 	 	$	202	 	  	 	—  	% 	 	 	16.82	% 		
2005 to 2008	  	 	5.50	% 	 	 	25	 	 	 	10,614	 	  	 	5	 	 	 	2,716	 	  	 	5	 	 	 	13.35	% 		
2009 to 2012	  	 	4.25	% 	 	 	1	 	 	 	1,210	 	  	 	1	 	 	 	320	 	  	 	1	 	 	 	6.31	% 		
2013	  	 	4.14	% 	 	 	1	 	 	 	1,820	 	  	 	1	 	 	 	512	 	  	 	1	 	 	 	4.84	% 		
2014	  	 	4.46	% 	 	 	3	 	 	 	3,699	 	  	 	2	 	 	 	999	 	  	 	2	 	 	 	6.06	% 		
2015	  	 	4.16	% 	 	 	5	 	 	 	7,887	 	  	 	4	 	 	 	2,104	 	  	 	4	 	 	 	5.66	% 		
2016	  	 	3.88	% 	 	 	9	 	 	 	15,385	 	  	 	7	 	 	 	4,063	 	  	 	8	 	 	 	5.46	% 		
2017	  	 	4.25	% 	 	 	12	 	 	 	16,289	 	  	 	8	 	 	 	4,180	 	  	 	8	 	 	 	6.51	% 		
2018	  	 	4.76	% 	 	 	14	 	 	 	17,235	 	  	 	8	 	 	 	4,322	 	  	 	8	 	 	 	7.70	% 		
2019	  	 	4.20	% 	 	 	19	 	 	 	39,463	 	  	 	19	 	 	 	9,840	 	  	 	19	 	 	 	5.60	% 		
2020	  	 	3.29	% 	 	 	8	 	 	 	93,637	 	  	 	45	 	 	 	23,217	 	  	 	44	 	 	 	1.09	% 		
	  				 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 					
Total	  	 	3.89	% 	 	 	100	% 	 	$	207,947	 	  	 	100	% 	 	$	52,475	 	  	 	100	% 	 	 	4.86	% 		

 	  	December 31, 2020	 	 	September 30, 2020	 	 	December 31, 2019	 	 	 	 		
 	  	Primary Risk
In-Force	 	 	Percent of
Primary Risk
In-Force	 	 	Primary Risk
In-Force	 	  	Percent of
Primary Risk
In-Force	 	 	Primary Risk
In-Force(3)	 	  	Percent of
Primary Risk
In-Force	 	 	 	 		
Loan-to-value ratio	  				 				 				  				 				  				 					
95.01% and above	  	$	9,279	 	 	 	18	% 	 	$	9,196	 	  	 	18	% 	 	$	8,365	 	  	 	18	% 	 					
90.01% to 95.00%	  	 	26,774	 	 	 	51	 	 	 	26,403	 	  	 	51	 	 	 	23,953	 	  	 	52	 	 					
80.01% to 90.00%	  	 	16,401	 	 	 	31	 	 	 	15,772	 	  	 	31	 	 	 	13,903	 	  	 	30	 	 					
80.00% and below	  	 	21	 	 	 	—  	 	 	 	22	 	  	 	—  	 	 	 	25	 	  	 	—  	 	 					
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 					
Total	  	$	52,475	 	 	 	100	% 	 	$	51,393	 	  	 	100	% 	 	$	46,246	 	  	 	100	% 	 					

 	  	December 31, 2020	 	 	September 30, 2020	 	 	December 31, 2019	 	 	 	 		
 	  	Primary Risk
In-Force	 	 	Percent of
Primary Risk
In-Force	 	 	Primary Risk
In-Force	 	  	Percent of
Primary Risk
In-Force	 	 	Primary Risk
In-Force	 	  	Percent of
Primary Risk
In-Force	 	 	 	 		
Credit Quality	  				 				 				  				 				  				 					
Over 760	  	$	19,691	 	 	 	37	% 	 	$	19,549	 	  	 	38	% 	 	$	17,606	 	  	 	38	% 	 					
740-759	  	 	8,497	 	 	 	16	 	 	 	8,424	 	  	 	16	 	 	 	7,685	 	  	 	17	 	 					
720-739	  	 	7,673	 	 	 	15	 	 	 	7,489	 	  	 	15	 	 	 	6,717	 	  	 	14	 	 					
700-719	  	 	6,579	 	 	 	12	 	 	 	6,288	 	  	 	12	 	 	 	5,464	 	  	 	12	 	 					
680-699	  	 	5,100	 	 	 	10	 	 	 	4,864	 	  	 	9	 	 	 	4,286	 	  	 	9	 	 					
660-679(4)	  	 	2,442	 	 	 	5	 	 	 	2,331	 	  	 	5	 	 	 	2,113	 	  	 	5	 	 					
640-659	  	 	1,472	 	 	 	3	 	 	 	1,423	 	  	 	3	 	 	 	1,322	 	  	 	3	 	 					
620-639	  	 	737	 	 	 	1	 	 	 	725	 	  	 	1	 	 	 	709	 	  	 	1	 	 					
<620	  	 	284	 	 	 	1	 	 	 	300	 	  	 	1	 	 	 	344	 	  	 	1	 	 					
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 					
Total	  	$	52,475	 	 	 	100	% 	 	$	51,393	 	  	 	100	% 	 	$	46,246	 	  	 	100	% 	 					

(1)	Average annual mortgage interest rate weighted by insurance in-force.	
(2)	Direct primary case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.	
(3)	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 PMIERs. Primary risk in-force by loan-to-value ratio as of December 31, 2019 has been reclassified to conform to the current year presentation.	
(4)	Loans with unknown FICO scores are included in the 660-679 category.	
 
21

 
Australia Mortgage Insurance Segment

 
22

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

 
																																									
 	  	2020	 	 	2019	 	
 	  	4Q	 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				 				 				
Premiums	  	$	72	 	  	$	71	 	 	$	62	 	 	$	69	 	 	$	274	 	 	$	72	 	 	$	77	 	 	$	80	 	 	$	83	 	 	$	312	 	
Net investment income	  	 	7	 	  	 	7	 	 	 	8	 	 	 	10	 	 	 	32	 	 	 	11	 	 	 	13	 	 	 	15	 	 	 	16	 	 	 	55	 	
Net investment gains (losses)	  	 	29	 	  	 	24	 	 	 	66	 	 	 	(53	) 	 	 	66	 	 	 	19	 	 	 	(9	) 	 	 	1	 	 	 	12	 	 	 	23	 	
Policy fees and other income	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	1	 	 	 	1	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	108	 	  	 	102	 	 	 	136	 	 	 	27	 	 	 	373	 	 	 	102	 	 	 	82	 	 	 	96	 	 	 	110	 	 	 	390	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	88	 	  	 	26	 	 	 	39	 	 	 	24	 	 	 	177	 	 	 	22	 	 	 	28	 	 	 	26	 	 	 	28	 	 	 	104	 	
Acquisition and operating expenses, net of deferrals	  	 	20	 	  	 	19	 	 	 	18	 	 	 	17	 	 	 	74	 	 	 	18	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	69	 	
Amortization of deferred acquisition costs and intangibles	  	 	8	 	  	 	7	 	 	 	6	 	 	 	8	 	 	 	29	 	 	 	6	 	 	 	9	 	 	 	9	 	 	 	9	 	 	 	33	 	
Goodwill impairment	  	 	—  	 	  	 	—  	 	 	 	5	 	 	 	—  	 	 	 	5	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Interest expense	  	 	2	 	  	 	2	 	 	 	2	 	 	 	1	 	 	 	7	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	8	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	118	 	  	 	54	 	 	 	70	 	 	 	50	 	 	 	292	 	 	 	48	 	 	 	56	 	 	 	54	 	 	 	56	 	 	 	214	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	(10	) 	  	 	48	 	 	 	66	 	 	 	(23	) 	 	 	81	 	 	 	54	 	 	 	26	 	 	 	42	 	 	 	54	 	 	 	176	 	
Provision (benefit) for income taxes	  	 	(4	) 	  	 	15	 	 	 	20	 	 	 	(7	) 	 	 	24	 	 	 	16	 	 	 	8	 	 	 	13	 	 	 	16	 	 	 	53	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	(6	) 	  	 	33	 	 	 	46	 	 	 	(16	) 	 	 	57	 	 	 	38	 	 	 	18	 	 	 	29	 	 	 	38	 	 	 	123	 	
Less: net income (loss) from continuing operations attributable to noncontrolling interests	  	 	(1	) 	  	 	18	 	 	 	23	 	 	 	(6	) 	 	 	34	 	 	 	19	 	 	 	10	 	 	 	15	 	 	 	20	 	 	 	64	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	  	 	(5	) 	  	 	15	 	 	 	23	 	 	 	(10	) 	 	 	23	 	 	 	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)	  	 	(16	) 	  	 	(12	) 	 	 	(34	) 	 	 	27	 	 	 	(35	) 	 	 	(10	) 	 	 	5	 	 	 	(1	) 	 	 	(6	) 	 	 	(12	) 	
Goodwill impairment, net(2)	  	 	—  	 	  	 	—  	 	 	 	3	 	 	 	—  	 	 	 	3	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Taxes on adjustments	  	 	5	 	  	 	4	 	 	 	9	 	 	 	(8	) 	 	 	10	 	 	 	3	 	 	 	(1	) 	 	 	—  	 	 	 	2	 	 	 	4	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)(3)	  	$	(16	) 	  	$	7	 	 	$	1	 	 	$	9	 	 	$	1	 	 	$	12	 	 	$	12	 	 	$	13	 	 	$	14	 	 	$	51	 	

SALES:	  				  				 				 				 				 				 				 				 				 				
New Insurance Written (NIW)	  				  				 				 				 				 				 				 				 				 				
Flow	  	$	6,700	 	  	$	5,500	 	 	$	4,400	 	 	$	4,100	 	 	$	20,700	 	 	$	4,900	 	 	$	4,600	 	 	$	3,700	 	 	$	3,400	 	 	$	16,600	 	
Bulk	  	 	600	 	  	 	100	 	 	 	100	 	 	 	200	 	 	 	1,000	 	 	 	400	 	 	 	—  	 	 	 	1,200	 	 	 	500	 	 	 	2,100	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Australia NIW(4),(5)	  	$	7,300	 	  	$	5,600	 	 	$	4,500	 	 	$	4,300	 	 	$	21,700	 	 	$	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	  	$	(29	) 	  	$	(24	) 	 	$	(66	) 	 	$	53	 	 	$	(66	) 	 	$	(19	) 	 	$	9	 	 	$	(1	) 	 	$	(12	) 	 	$	(23	) 	
Adjustment for net investment gains (losses) attributable to noncontrolling interests	  	 	13	 	  	 	12	 	 	 	32	 	 	 	(26	) 	 	 	31	 	 	 	9	 	 	 	(4	) 	 	 	—  	 	 	 	6	 	 	 	11	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment (gains) losses, net	  	$	(16	) 	  	$	(12	) 	 	$	(34	) 	 	$	27	 	 	$	(35	) 	 	$	(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 (loss) for the Australian platform adjusted for foreign exchange as compared to the prior year period was $(15) million and $3 million for the three and twelve months ended December 31, 2020, respectively.	
(4)	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $6,900 million and $21,900 million for the three and twelve months ended December 31, 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.	
 
23

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

 	  	2020	 	 	2019	 		
 	  	4Q	 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 		
Net Premiums Written	  	$	130	 	  	$	91	 	 	$	70	 	 	$	62	 	 	$	353	 	 	$	92	 	 	$	70	 	 	$	58	 	 	$	52	 	 	$	272	 		
Loss Ratio(1)	  	 	122	% 	  	 	37	% 	 	 	63	% 	 	 	34	% 	 	 	65	% 	 	 	30	% 	 	 	36	% 	 	 	34	% 	 	 	34	% 	 	 	33	% 		
Expense Ratio (Net Earned Premiums)(2)	  	 	38	% 	  	 	37	% 	 	 	47	% 	 	 	36	% 	 	 	39	% 	 	 	34	% 	 	 	34	% 	 	 	33	% 	 	 	31	% 	 	 	33	% 		
Expense Ratio (Net Premiums Written)(3)	  	 	21	% 	  	 	29	% 	 	 	41	% 	 	 	40	% 	 	 	30	% 	 	 	26	% 	 	 	38	% 	 	 	44	% 	 	 	50	% 	 	 	38	% 		
Insurance In-Force(4)	  	$	235,400	 	  	$	215,800	 	 	$	210,200	 	 	$	188,400	 	 				 	$	215,700	 	 	$	206,400	 	 	$	215,600	 	 	$	219,200	 	 					
Risk In-Force(4),(5)	  			 	  				 				 				 				 				 				 				 				 					
Flow	  	$	76,100	 	  	$	69,700	 	 	$	67,700	 	 	$	60,700	 	 				 	$	69,400	 	 	$	66,400	 	 	$	69,100	 	 	$	70,600	 	 					
Bulk	  	 	6,000	 	  	 	5,500	 	 	 	5,500	 	 	 	5,000	 	 				 	 	5,700	 	 	 	5,500	 	 	 	6,000	 	 	 	5,700	 	 					
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Total	  	$	82,100	 	  	$	75,200	 	 	$	73,200	 	 	$	65,700	 	 				 	$	75,100	 	 	$	71,900	 	 	$	75,100	 	 	$	76,300	 	 					

								
 	  	December 31, 2020	 	 	 	 	 	 	 	 	September 30, 2020	 	 	 	 	 	 	 		
	Risk In-Force by Loan-To-Value Ratio(4),(6)	  	Total	 	  	Flow	 	 	Bulk	 	 	 	 	 	 	 	 	Total	 	 	Flow	 	 	Bulk	 	 	 	 	 	 	 	
95.01% and above	  	$	10,322	 	  	$	10,322	 	 	$	—  	 	 				 				 	$	9,781	 	 	$	9,781	 	 	$	—  	 	 				 					
90.01% to 95.00%	  	 	24,144	 	  	 	24,133	 	 	 	11	 	 				 				 	 	21,842	 	 	 	21,831	 	 	 	11	 	 				 					
80.01% to 90.00%	  	 	27,099	 	  	 	27,014	 	 	 	85	 	 				 				 	 	24,435	 	 	 	24,354	 	 	 	81	 	 				 					
80.00% and below	  	 	20,489	 	  	 	14,578	 	 	 	5,911	 	 				 				 	 	19,153	 	 	 	13,729	 	 	 	5,424	 	 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 				 	 	 	 	 	 	 	 	 	 	 	 	 				 					
Total	  	$	82,054	 	  	$	76,047	 	 	$	6,007	 	 				 				 	$	75,211	 	 	$	69,695	 	 	$	5,516	 	 				 					
	  	 	 	 	  	 	 	 	 	 	 	 	 				 				 	 	 	 	 	 	 	 	 	 	 	 	 				 					
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 $181 million, $168 million, $162 million, $143 million, $162 million, $152 million, $157 million and $157 million as of December 31, 2020, 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.	
 
24

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

	Insured Loans(1)	  	December 31, 2020	 	 	September 30, 2020	 	 	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 2019	 	 	 	 	
Insured loans in-force	  	 	1,195,907	 	 	 	1,193,072	 	 	 	1,236,657	 	 	 	1,284,120	 	 	 	1,290,216	 	 					
Insured delinquent loans	  	 	6,964	 	 	 	7,422	 	 	 	7,614	 	 	 	7,274	 	 	 	7,221	 	 					
Insured delinquency rate	  	 	0.58	% 	 	 	0.62	% 	 	 	0.62	% 	 	 	0.57	% 	 	 	0.56	% 	 					
								
Flow loans in-force	  	 	1,099,408	 	 	 	1,096,679	 	 	 	1,137,784	 	 	 	1,183,889	 	 	 	1,189,019	 	 					
Flow delinquent loans	  	 	6,717	 	 	 	7,171	 	 	 	7,380	 	 	 	7,055	 	 	 	7,003	 	 					
Flow delinquency rate	  	 	0.61	% 	 	 	0.65	% 	 	 	0.65	% 	 	 	0.60	% 	 	 	0.59	% 	 					
								
Bulk loans in-force	  	 	96,499	 	 	 	96,393	 	 	 	98,873	 	 	 	100,231	 	 	 	101,197	 	 					
Bulk delinquent loans	  	 	247	 	 	 	251	 	 	 	234	 	 	 	219	 	 	 	218	 	 					
Bulk delinquency rate	  	 	0.26	% 	 	 	0.26	% 	 	 	0.24	% 	 	 	0.22	% 	 	 	0.22	% 	 					
								
	Loss Metrics	  	December 31, 2020	 	 	September 30, 2020	 	 	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 2019	 	 	 	 	
Beginning Reserves	  	$	238	 	 	$	226	 	 	$	184	 	 	$	208	 	 	$	204	 	 					
Paid claims(2)	  	 	(16	) 	 	 	(23	) 	 	 	(22	) 	 	 	(21	) 	 	 	(25	) 	 					
Increase in reserves	  	 	88	 	 	 	26	 	 	 	39	 	 	 	24	 	 	 	22	 	 					
Impact of changes in foreign exchange rates	  	 	21	 	 	 	9	 	 	 	25	 	 	 	(27	) 	 	 	7	 	 					
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 					
Ending Reserves	  	$	331	 	 	$	238	 	 	$	226	 	 	$	184	 	 	$	208	 	 					

 	  	December 31, 2020	 	 	September 30, 2020	 	 	December 31, 2019	 		
	State and Territory(1)	  	Percent of
Risk In-Force	 	 	Delinquency Rate	 	 	Percent of
Risk In-Force	 	 	Delinquency
Rate	 	 	Percent of
Risk In-Force	 	 	Delinquency Rate	 	
New South Wales	  	 	28	% 	 	 	0.47	% 	 	 	28	% 	 	 	0.50	% 	 	 	27	% 	 	 	0.42	% 		
Queensland	  	 	23	 	 	 	0.70	% 	 	 	23	 	 	 	0.77	% 	 	 	23	 	 	 	0.75	% 		
Victoria	  	 	23	 	 	 	0.47	% 	 	 	23	 	 	 	0.49	% 	 	 	23	 	 	 	0.41	% 		
Western Australia	  	 	13	 	 	 	0.97	% 	 	 	13	 	 	 	1.04	% 	 	 	13	 	 	 	1.00	% 		
South Australia	  	 	6	 	 	 	0.66	% 	 	 	6	 	 	 	0.69	% 	 	 	6	 	 	 	0.65	% 		
Australian Capital Territory	  	 	3	 	 	 	0.23	% 	 	 	3	 	 	 	0.25	% 	 	 	3	 	 	 	0.24	% 		
Tasmania	  	 	2	 	 	 	0.25	% 	 	 	2	 	 	 	0.24	% 	 	 	2	 	 	 	0.29	% 		
New Zealand	  	 	1	 	 	 	0.06	% 	 	 	1	 	 	 	0.05	% 	 	 	2	 	 	 	0.02	% 		
Northern Territory	  	 	1	 	 	 	0.80	% 	 	 	1	 	 	 	0.92	% 	 	 	1	 	 	 	0.71	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.58	% 	 	 	100	% 	 	 	0.62	% 	 	 	100	% 	 	 	0.56	% 		

	By Policy Year(1)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
2011 and prior	  	 	41	% 	 	 	0.57	% 	 	 	41	% 	 	 	0.59	% 	 	 	47	% 	 	 	            0.50	% 		
2012	  	 	5	 	 	 	0.91	% 	 	 	5	 	 	 	0.99	% 	 	 	5	 	 	 	0.95	% 		
2013	  	 	6	 	 	 	0.94	% 	 	 	6	 	 	 	1.06	% 	 	 	6	 	 	 	1.04	% 		
2014	  	 	6	 	 	 	1.01	% 	 	 	7	 	 	 	1.08	% 	 	 	7	 	 	 	1.04	% 		
2015	  	 	6	 	 	 	0.84	% 	 	 	7	 	 	 	0.83	% 	 	 	7	 	 	 	0.77	% 		
2016	  	 	6	 	 	 	0.64	% 	 	 	6	 	 	 	0.68	% 	 	 	6	 	 	 	0.60	% 		
2017	  	 	6	 	 	 	0.53	% 	 	 	6	 	 	 	0.52	% 	 	 	7	 	 	 	0.45	% 		
2018	  	 	6	 	 	 	0.41	% 	 	 	7	 	 	 	0.41	% 	 	 	7	 	 	 	0.28	% 		
2019	  	 	8	 	 	 	0.18	% 	 	 	8	 	 	 	0.17	% 	 	 	8	 	 	 	0.02	% 		
2020	  	 	10	 	 	 	0.02	% 	 	 	7	 	 	 	0.01	% 	 	 	—  	 	 	 	—  	% 		
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 					
Total	  	 	100	% 	 	 	0.58	% 	 	 	100	% 	 	 	0.62	% 	 	 	100	% 	 	 	0.56	% 		

(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.	
 
25

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

 	  	2020	 	 	2019	 	
 	  	4Q	 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Paid Claims(1)	  			 	  				 				 				 				 				 				 				 				 				
Flow	  	$	22	 	  	$	33	 	 	$	35	 	 	$	31	 	 	$	121	 	 	$	37	 	 	$	35	 	 	$	28	 	 	$	30	 	 	$	130	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Paid Claims	  	$	22	 	  	$	33	 	 	$	35	 	 	$	31	 	 	$	121	 	 	$	37	 	 	$	35	 	 	$	28	 	 	$	30	 	 	$	130	 	

Average Paid Claim (in thousands)	  	$	95.9	 	  	$	99.4	 	 	$	97.0	 	 	$	92.7	 	 				 	$	99.4	 	 	$	97.9	 	 	$	94.1	 	 	$	94.2	 	 				
	 										
Average Reserve Per Delinquency (in thousands)	  	$	61.7	 	  	$	44.7	 	 	$	43.0	 	 	$	41.3	 	 				 	$	41.1	 	 	$	39.2	 	 	$	37.8	 	 	$	38.4	 	 				
	 										
Loss Metrics	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beginning Reserves	  	$	331	 	  	$	328	 	 	$	301	 	 	$	297	 	 	$	297	 	 	$	302	 	 	$	298	 	 	$	288	 	 	$	279	 	 	$	279	 	
Paid claims(1)	  	 	(22	) 	  	 	(33	) 	 	 	(35	) 	 	 	(31	) 	 	 	(121	) 	 	 	(37	) 	 	 	(35	) 	 	 	(28	) 	 	 	(30	) 	 	 	(130	) 	
Increase in reserves	  	 	121	 	  	 	36	 	 	 	62	 	 	 	35	 	 	 	254	 	 	 	32	 	 	 	39	 	 	 	38	 	 	 	39	 	 	 	148	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending Reserves	  	$	430	 	  	$	331	 	 	$	328	 	 	$	301	 	 	$	430	 	 	$	297	 	 	$	302	 	 	$	298	 	 	$	288	 	 	$	297	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loan Amount(2),(3)	  			 	  				 				 				 				 				 				 				 				 				
Over $550K	  	 	22	% 	  	 	21	% 	 	 	21	% 	 	 	20	% 	 				 	 	19	% 	 	 	19	% 	 	 	19	% 	 	 	18	% 	 				
$400K to $550K	  	 	23	 	  	 	23	 	 	 	22	 	 	 	22	 	 				 	 	22	 	 	 	22	 	 	 	21	 	 	 	21	 	 				
$250K to $400K	  	 	32	 	  	 	33	 	 	 	33	 	 	 	32	 	 				 	 	33	 	 	 	33	 	 	 	33	 	 	 	34	 	 				
$100K to $250K	  	 	19	 	  	 	19	 	 	 	20	 	 	 	21	 	 				 	 	21	 	 	 	21	 	 	 	22	 	 	 	22	 	 				
$100K or Less	  	 	4	 	  	 	4	 	 	 	4	 	 	 	5	 	 				 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 				
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total	  	 	100	% 	  	 	100	% 	 	 	100	% 	 	 	100	% 	 				 	 	100	% 	 	 	100	% 	 	 	100	% 	 	 	100	% 	 				

Average Loan Size (in thousands)(3)	  	$	256	 	  	$	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 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.	
 
26

 

	  		
U.S. Life Insurance Segment

 
27

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

 	 	2020	 	 	2019	 	
  	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	 			 	 				 				 				 				 				 				 				 				 				
Premiums	 	$	717	 	 	$	711	 	 	$	712	 	 	$	718	 	 	$	2,858	 	 	$	722	 	 	$	717	 	 	$	713	 	 	$	709	 	 	$	2,861	 	
Net investment income	 	 	765	 	 	 	726	 	 	 	692	 	 	 	695	 	 	 	2,878	 	 	 	705	 	 	 	722	 	 	 	724	 	 	 	701	 	 	 	2,852	 	
Net investment gains (losses)	 	 	121	 	 	 	348	 	 	 	118	 	 	 	(70	) 	 	 	517	 	 	 	23	 	 	 	11	 	 	 	(36	) 	 	 	84	 	 	 	82	 	
Policy fees and other income	 	 	157	 	 	 	152	 	 	 	142	 	 	 	144	 	 	 	595	 	 	 	153	 	 	 	152	 	 	 	187	 	 	 	151	 	 	 	643	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	1,760	 	 	 	1,937	 	 	 	1,664	 	 	 	1,487	 	 	 	6,848	 	 	 	1,603	 	 	 	1,602	 	 	 	1,588	 	 	 	1,645	 	 	 	6,438	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	 			 	 				 				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	 	 	1,050	 	 	 	1,221	 	 	 	1,213	 	 	 	1,297	 	 	 	4,781	 	 	 	1,307	 	 	 	1,225	 	 	 	1,211	 	 	 	1,236	 	 	 	4,979	 	
Interest credited	 	 	91	 	 	 	95	 	 	 	97	 	 	 	100	 	 	 	383	 	 	 	101	 	 	 	106	 	 	 	106	 	 	 	106	 	 	 	419	 	
Acquisition and operating expenses, net of deferrals	 	 	164	 	 	 	158	 	 	 	147	 	 	 	151	 	 	 	620	 	 	 	156	 	 	 	158	 	 	 	142	 	 	 	148	 	 	 	604	 	
Amortization of deferred acquisition costs and intangibles	 	 	161	 	 	 	87	 	 	 	83	 	 	 	87	 	 	 	418	 	 	 	150	 	 	 	89	 	 	 	67	 	 	 	66	 	 	 	372	 	
Interest expense	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	5	 	 	 	5	 	 	 	4	 	 	 	4	 	 	 	4	 	 	 	5	 	 	 	17	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	 	 	1,466	 	 	 	1,561	 	 	 	1,540	 	 	 	1,640	 	 	 	6,207	 	 	 	1,718	 	 	 	1,582	 	 	 	1,530	 	 	 	1,561	 	 	 	6,391	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	 	 	294	 	 	 	376	 	 	 	124	 	 	 	(153	) 	 	 	641	 	 	 	(115	) 	 	 	20	 	 	 	58	 	 	 	84	 	 	 	47	 	
Provision (benefit) for income taxes	 	 	70	 	 	 	87	 	 	 	33	 	 	 	(27	) 	 	 	163	 	 	 	(19	) 	 	 	10	 	 	 	19	 	 	 	24	 	 	 	34	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	 	 	224	 	 	 	289	 	 	 	91	 	 	 	(126	) 	 	 	478	 	 	 	(96	) 	 	 	10	 	 	 	39	 	 	 	60	 	 	 	13	 	
	 										
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	 			 	 				 				 				 				 				 				 				 				 				
Net investment (gains) losses, net(1)	 	 	(123	) 	 	 	(348	) 	 	 	(121	) 	 	 	67	 	 	 	(525	) 	 	 	(24	) 	 	 	(14	) 	 	 	35	 	 	 	(86	) 	 	 	(89	) 	
Losses on early extinguishment of debt	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Expenses related to restructuring	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	4	 	 	 	3	 	
Taxes on adjustments	 	 	27	 	 	 	73	 	 	 	25	 	 	 	(15	) 	 	 	110	 	 	 	5	 	 	 	3	 	 	 	(7	) 	 	 	17	 	 	 	18	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	 	$	129	 	 	$	14	 	 	$	(5	) 	 	$	(70	) 	 	$	68	 	 	$	(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	 	$	(121	) 	 	$	(348	) 	 	$	(118	) 	 	$	70	 	 	$	(517	) 	 	$	(23	) 	 	$	(11	) 	 	$	36	 	 	$	(84	) 	 	$	(82	) 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	 	 	(2	) 	 	 	—	 	 	 	(3	) 	 	 	(3	) 	 	 	(8	) 	 	 	(1	) 	 	 	(3	) 	 	 	(1	) 	 	 	(2	) 	 	 	(7	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment (gains) losses, net	 	$	(123	) 	 	$	(348	) 	 	$	(121	) 	 	$	67	 	 	$	(525	) 	 	$	(24	) 	 	$	(14	) 	 	$	35	 	 	$	(86	) 	 	$	(89	) 	

28

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

 	  	2020	 	 	2019	 	
 	  	4Q	 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
REVENUES:	  			 	  				 				 				 				 				 				 				 				 				
Premiums	  	$	668	 	  	$	661	 	 	$	649	 	 	$	642	 	 	$	2,620	 	 	$	663	 	 	$	652	 	 	$	640	 	 	$	628	 	 	$	2,583	 	
Net investment income	  	 	499	 	  	 	456	 	 	 	422	 	 	 	419	 	 	 	1,796	 	 	 	424	 	 	 	432	 	 	 	428	 	 	 	406	 	 	 	1,690	 	
Net investment gains (losses)	  	 	118	 	  	 	347	 	 	 	129	 	 	 	(55	) 	 	 	539	 	 	 	19	 	 	 	28	 	 	 	(15	) 	 	 	80	 	 	 	112	 	
Policy fees and other income	  	 	3	 	  	 	2	 	 	 	—  	 	 	 	—  	 	 	 	5	 	 	 	—  	 	 	 	(2	) 	 	 	2	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	1,288	 	  	 	1,466	 	 	 	1,200	 	 	 	1,006	 	 	 	4,960	 	 	 	1,106	 	 	 	1,110	 	 	 	1,055	 	 	 	1,114	 	 	 	4,385	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				 				 				 				 				 				 				 				 				
Benefits and other changes in policy reserves	  	 	863	 	  	 	901	 	 	 	876	 	 	 	928	 	 	 	3,568	 	 	 	925	 	 	 	916	 	 	 	896	 	 	 	927	 	 	 	3,664	 	
Interest credited	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Acquisition and operating expenses, net of deferrals	  	 	114	 	  	 	108	 	 	 	103	 	 	 	101	 	 	 	426	 	 	 	105	 	 	 	106	 	 	 	93	 	 	 	101	 	 	 	405	 	
Amortization of deferred acquisition costs and intangibles	  	 	21	 	  	 	25	 	 	 	21	 	 	 	24	 	 	 	91	 	 	 	25	 	 	 	25	 	 	 	26	 	 	 	25	 	 	 	101	 	
Interest expense	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total benefits and expenses	  	 	998	 	  	 	1,034	 	 	 	1,000	 	 	 	1,053	 	 	 	4,085	 	 	 	1,055	 	 	 	1,047	 	 	 	1,015	 	 	 	1,053	 	 	 	4,170	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	290	 	  	 	432	 	 	 	200	 	 	 	(47	) 	 	 	875	 	 	 	51	 	 	 	63	 	 	 	40	 	 	 	61	 	 	 	215	 	
Provision (benefit) for income taxes	  	 	69	 	  	 	99	 	 	 	49	 	 	 	(4	) 	 	 	213	 	 	 	17	 	 	 	19	 	 	 	15	 	 	 	19	 	 	 	70	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	221	 	  	 	333	 	 	 	151	 	 	 	(43	) 	 	 	662	 	 	 	34	 	 	 	44	 	 	 	25	 	 	 	42	 	 	 	145	 	
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				 				 				 				 				 				 				 				 				
Net investment (gains) losses	  	 	(118	) 	  	 	(347	) 	 	 	(129	) 	 	 	55	 	 	 	(539	) 	 	 	(19	) 	 	 	(28	) 	 	 	15	 	 	 	(80	) 	 	 	(112	) 	
Expenses related to restructuring	  	 	1	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	2	 	 	 	1	 	
Taxes on adjustments	  	 	25	 	  	 	73	 	 	 	26	 	 	 	(11	) 	 	 	113	 	 	 	4	 	 	 	5	 	 	 	(2	) 	 	 	16	 	 	 	23	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	129	 	  	$	59	 	 	$	48	 	 	$	1	 	 	$	237	 	 	$	19	 	 	$	21	 	 	$	37	 	 	$	(20	) 	 	$	57	 	

RATIOS:	  				  				 				 				 				 				 				 				 				 				
Loss Ratio(1)	  	 	65	% 	  	 	71	% 	 	 	69	% 	 	 	78	% 	 	 	71	% 	 	 	76	% 	 	 	76	% 	 	 	74	% 	 	 	81	% 	 	 	77	% 	
Gross Benefits Ratio(2)	  	 	129	% 	  	 	136	% 	 	 	135	% 	 	 	145	% 	 	 	136	% 	 	 	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.	
 
29

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

 	  	2020	 	  	2019	 	
 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				  				  				
Premiums	  	$	49	 	  	$	50	 	  	$	63	 	  	$	76	 	  	$	238	 	  	$	59	 	  	$	65	 	  	$	73	 	  	$	81	 	  	$	278	 	
Net investment income	  	 	131	 	  	 	131	 	  	 	127	 	  	 	130	 	  	 	519	 	  	 	128	 	  	 	133	 	  	 	130	 	  	 	133	 	  	 	524	 	
Net investment gains (losses)	  	 	10	 	  	 	4	 	  	 	5	 	  	 	1	 	  	 	20	 	  	 	6	 	  	 	(2	) 	  	 	(3	) 	  	 	10	 	  	 	11	 	
Policy fees and other income	  	 	151	 	  	 	148	 	  	 	140	 	  	 	141	 	  	 	580	 	  	 	150	 	  	 	151	 	  	 	182	 	  	 	148	 	  	 	631	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	341	 	  	 	333	 	  	 	335	 	  	 	348	 	  	 	1,357	 	  	 	343	 	  	 	347	 	  	 	382	 	  	 	372	 	  	 	1,444	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	131	 	  	 	269	 	  	 	289	 	  	 	302	 	  	 	991	 	  	 	335	 	  	 	228	 	  	 	244	 	  	 	242	 	  	 	1,049	 	
Interest credited	  	 	55	 	  	 	57	 	  	 	57	 	  	 	59	 	  	 	228	 	  	 	58	 	  	 	60	 	  	 	58	 	  	 	58	 	  	 	234	 	
Acquisition and operating expenses, net of deferrals	  	 	38	 	  	 	39	 	  	 	34	 	  	 	39	 	  	 	150	 	  	 	39	 	  	 	40	 	  	 	37	 	  	 	34	 	  	 	150	 	
Amortization of deferred acquisition costs and intangibles	  	 	133	 	  	 	52	 	  	 	53	 	  	 	44	 	  	 	282	 	  	 	109	 	  	 	50	 	  	 	28	 	  	 	27	 	  	 	214	 	
Interest expense	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	5	 	  	 	5	 	  	 	4	 	  	 	4	 	  	 	4	 	  	 	5	 	  	 	17	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	357	 	  	 	417	 	  	 	433	 	  	 	449	 	  	 	1,656	 	  	 	545	 	  	 	382	 	  	 	371	 	  	 	366	 	  	 	1,664	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	(16	) 	  	 	(84	) 	  	 	(98	) 	  	 	(101	) 	  	 	(299	) 	  	 	(202	) 	  	 	(35	) 	  	 	11	 	  	 	6	 	  	 	(220	) 	
Provision (benefit) for income taxes	  	 	(3	) 	  	 	(18	) 	  	 	(21	) 	  	 	(22	) 	  	 	(64	) 	  	 	(43	) 	  	 	(8	) 	  	 	3	 	  	 	1	 	  	 	(47	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	(13	) 	  	 	(66	) 	  	 	(77	) 	  	 	(79	) 	  	 	(235	) 	  	 	(159	) 	  	 	(27	) 	  	 	8	 	  	 	5	 	  	 	(173	) 	
	 										
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				  				  				  				  				  				  				  				  				
Net investment (gains) losses	  	 	(10	) 	  	 	(4	) 	  	 	(5	) 	  	 	(1	) 	  	 	(20	) 	  	 	(6	) 	  	 	2	 	  	 	3	 	  	 	(10	) 	  	 	(11	) 	
Losses on early extinguishment of debt	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	4	 	  	 	4	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Expenses related to restructuring	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	1	 	  	 	1	 	
Taxes on adjustments	  	 	3	 	  	 	1	 	  	 	1	 	  	 	(1	) 	  	 	4	 	  	 	1	 	  	 	—  	 	  	 	(1	) 	  	 	2	 	  	 	2	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	(20	) 	  	$	(69	) 	  	$	(81	) 	  	$	(77	) 	  	$	(247	) 	  	$	(164	) 	  	$	(25	) 	  	$	10	 	  	$	(2	) 	  	$	(181	) 	

 
30

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

 
																																									
 	  	2020	 	  	2019	 	
 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				  				  				
Premiums	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Net investment income	  	 	135	 	  	 	139	 	  	 	143	 	  	 	146	 	  	 	563	 	  	 	153	 	  	 	157	 	  	 	166	 	  	 	162	 	  	 	638	 	
Net investment gains (losses)	  	 	(7	) 	  	 	(3	) 	  	 	(16	) 	  	 	(16	) 	  	 	(42	) 	  	 	(2	) 	  	 	(15	) 	  	 	(18	) 	  	 	(6	) 	  	 	(41	) 	
Policy fees and other income	  	 	3	 	  	 	2	 	  	 	2	 	  	 	3	 	  	 	10	 	  	 	3	 	  	 	3	 	  	 	3	 	  	 	3	 	  	 	12	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	131	 	  	 	138	 	  	 	129	 	  	 	133	 	  	 	531	 	  	 	154	 	  	 	145	 	  	 	151	 	  	 	159	 	  	 	609	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	56	 	  	 	51	 	  	 	48	 	  	 	67	 	  	 	222	 	  	 	47	 	  	 	81	 	  	 	71	 	  	 	67	 	  	 	266	 	
Interest credited	  	 	36	 	  	 	38	 	  	 	40	 	  	 	41	 	  	 	155	 	  	 	43	 	  	 	46	 	  	 	48	 	  	 	48	 	  	 	185	 	
Acquisition and operating expenses, net of deferrals	  	 	12	 	  	 	11	 	  	 	10	 	  	 	11	 	  	 	44	 	  	 	12	 	  	 	12	 	  	 	12	 	  	 	13	 	  	 	49	 	
Amortization of deferred acquisition costs and intangibles	  	 	7	 	  	 	10	 	  	 	9	 	  	 	19	 	  	 	45	 	  	 	16	 	  	 	14	 	  	 	13	 	  	 	14	 	  	 	57	 	
Interest expense	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	111	 	  	 	110	 	  	 	107	 	  	 	138	 	  	 	466	 	  	 	118	 	  	 	153	 	  	 	144	 	  	 	142	 	  	 	557	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	20	 	  	 	28	 	  	 	22	 	  	 	(5	) 	  	 	65	 	  	 	36	 	  	 	(8	) 	  	 	7	 	  	 	17	 	  	 	52	 	
Provision (benefit) for income taxes	  	 	4	 	  	 	6	 	  	 	5	 	  	 	(1	) 	  	 	14	 	  	 	7	 	  	 	(1	) 	  	 	1	 	  	 	4	 	  	 	11	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	16	 	  	 	22	 	  	 	17	 	  	 	(4	) 	  	 	51	 	  	 	29	 	  	 	(7	) 	  	 	6	 	  	 	13	 	  	 	41	 	
	 										
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				  				  				  				  				  				  				  				  				
Net investment (gains) losses, net(1)	  	 	5	 	  	 	3	 	  	 	13	 	  	 	13	 	  	 	34	 	  	 	1	 	  	 	12	 	  	 	17	 	  	 	4	 	  	 	34	 	
Expenses related to restructuring	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	1	 	  	 	1	 	
Taxes on adjustments	  	 	(1	) 	  	 	(1	) 	  	 	(2	) 	  	 	(3	) 	  	 	(7	) 	  	 	—  	 	  	 	(2	) 	  	 	(4	) 	  	 	(1	) 	  	 	(7	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME	  	$	20	 	  	$	24	 	  	$	28	 	  	$	6	 	  	$	78	 	  	$	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	  	$	7	 	  	$	3	 	  	$	16	 	  	$	16	 	  	$	42	 	  	$	2	 	  	$	15	 	  	$	18	 	  	$	6	 	  	$	41	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	(2	) 	  	 	—  	 	  	 	(3	) 	  	 	(3	) 	  	 	(8	) 	  	 	(1	) 	  	 	(3	) 	  	 	(1	) 	  	 	(2	) 	  	 	(7	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net investment (gains) losses, net	  	$	5	 	  	$	3	 	  	$	13	 	  	$	13	 	  	$	34	 	  	$	1	 	  	$	12	 	  	$	17	 	  	$	4	 	  	$	34	 	

31

 
Runoff Segment

 
32

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

 
																																									
 	  	2020	 	 	2019	 	
  	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	 	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				 				  				  				  				  				
Net investment income	  	$	52	 	  	$	55	 	  	$	54	 	  	$	49	 	  	$	210	 	 	$	45	 	  	$	48	 	  	$	47	 	  	$	47	 	  	$	187	 	
Net investment gains (losses)	  	 	30	 	  	 	15	 	  	 	4	 	  	 	(75	) 	  	 	(26	) 	 	 	(12	) 	  	 	(9	) 	  	 	(4	) 	  	 	—  	 	  	 	(25	) 	
Policy fees and other income	  	 	32	 	  	 	33	 	  	 	32	 	  	 	33	 	  	 	130	 	 	 	35	 	  	 	35	 	  	 	35	 	  	 	35	 	  	 	140	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	114	 	  	 	103	 	  	 	90	 	  	 	7	 	  	 	314	 	 	 	68	 	  	 	74	 	  	 	78	 	  	 	82	 	  	 	302	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				 				  				  				  				  				
Benefits and other changes in policy reserves	  	 	17	 	  	 	7	 	  	 	4	 	  	 	20	 	  	 	48	 	 	 	5	 	  	 	8	 	  	 	13	 	  	 	1	 	  	 	27	 	
Interest credited	  	 	41	 	  	 	42	 	  	 	42	 	  	 	41	 	  	 	166	 	 	 	37	 	  	 	40	 	  	 	40	 	  	 	41	 	  	 	158	 	
Acquisition and operating expenses, net of deferrals	  	 	12	 	  	 	12	 	  	 	11	 	  	 	13	 	  	 	48	 	 	 	13	 	  	 	13	 	  	 	13	 	  	 	13	 	  	 	52	 	
Amortization of deferred acquisition costs and intangibles	  	 	3	 	  	 	4	 	  	 	(1	) 	  	 	17	 	  	 	23	 	 	 	2	 	  	 	10	 	  	 	4	 	  	 	2	 	  	 	18	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	73	 	  	 	65	 	  	 	56	 	  	 	91	 	  	 	285	 	 	 	57	 	  	 	71	 	  	 	70	 	  	 	57	 	  	 	255	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	41	 	  	 	38	 	  	 	34	 	  	 	(84	) 	  	 	29	 	 	 	11	 	  	 	3	 	  	 	8	 	  	 	25	 	  	 	47	 	
Provision (benefit) for income taxes	  	 	8	 	  	 	8	 	  	 	6	 	  	 	(18	) 	  	 	4	 	 	 	2	 	  	 	—	 	  	 	1	 	  	 	5	 	  	 	8	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
INCOME (LOSS) FROM CONTINUING OPERATIONS	  	 	33	 	  	 	30	 	  	 	28	 	  	 	(66	) 	  	 	25	 	 	 	9	 	  	 	3	 	  	 	7	 	  	 	20	 	  	 	39	 	
	 										
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:	  			 	  				  				  				  				 				  				  				  				  				
Net investment (gains) losses, net(1)	  	 	(25	) 	  	 	(14	) 	  	 	(5	) 	  	 	67	 	  	 	23	 	 	 	10	 	  	 	9	 	  	 	2	 	  	 	—  	 	  	 	21	 	
Taxes on adjustments	  	 	5	 	  	 	3	 	  	 	1	 	  	 	(14	) 	  	 	(5	) 	 	 	(2	) 	  	 	(2	) 	  	 	—  	 	  	 	—  	 	  	 	(4	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING INCOME (LOSS)	  	$	13	 	  	$	19	 	  	$	24	 	  	$	(13	) 	  	$	43	 	 	$	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	  	$	(30	) 	  	$	(15	) 	  	$	(4	) 	  	$	75	 	  	$	26	 	 	$	12	 	  	$	9	 	  	$	4	 	  	$	—  	 	  	$	25	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	5	 	  	 	1	 	  	 	(1	) 	  	 	(8	) 	  	 	(3	) 	 	 	(2	) 	  	 	—  	 	  	 	(2	) 	  	 	—  	 	  	 	(4	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net investment (gains) losses, net	  	$	(25	) 	  	$	(14	) 	  	$	(5	) 	  	$	67	 	  	$	23	 	 	$	10	 	  	$	9	 	  	$	2	 	  	$	—  	 	  	$	21	 	

33

 
Corporate and Other

 
34

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

 	  	2020	 	  	2019	 	
  	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	  	4Q	 	  	3Q	 	  	2Q	 	  	1Q	 	  	Total	 	
REVENUES:	  			 	  				  				  				  				  				  				  				  				  				
Premiums	  	$	2	 	  	$	1	 	  	$	2	 	  	$	2	 	  	$	7	 	  	$	2	 	  	$	2	 	  	$	2	 	  	$	2	 	  	$	8	 	
Net investment income	  	 	(5)	 	  	 	5	 	  	 	1	 	  	 	6	 	  	 	7	 	  	 	3	 	  	 	2	 	  	 	2	 	  	 	2	 	  	 	9	 	
Net investment gains (losses)	  	 	(3)	 	  	 	(10)	 	  	 	(28)	 	  	 	46	 	  	 	5	 	  	 	(8)	 	  	 	5	 	  	 	(7)	 	  	 	(21)	 	  	 	(31)	 	
Policy fees and other income	  	 	—  	 	  	 	(2)	 	  	 	(1)	 	  	 	1	 	  	 	(2)	 	  	 	(1)	 	  	 	2	 	  	 	—  	 	  	 	1	 	  	 	2	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenues	  	 	(6)	 	  	 	(6)	 	  	 	(26)	 	  	 	55	 	  	 	17	 	  	 	(4)	 	  	 	11	 	  	 	(3)	 	  	 	(16)	 	  	 	(12)	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
BENEFITS AND EXPENSES:	  			 	  				  				  				  				  				  				  				  				  				
Benefits and other changes in policy reserves	  	 	1	 	  	 	—  	 	  	 	2	 	  	 	1	 	  	 	4	 	  	 	1	 	  	 	—  	 	  	 	1	 	  	 	1	 	  	 	3	 	
Acquisition and operating expenses, net of deferrals	  	 	16	 	  	 	6	 	  	 	—  	 	  	 	18	 	  	 	40	 	  	 	12	 	  	 	8	 	  	 	13	 	  	 	13	 	  	 	46	 	
Amortization of deferred acquisition costs and intangibles	  	 	—  	 	  	 	—  	 	  	 	1	 	  	 	—  	 	  	 	1	 	  	 	2	 	  	 	1	 	  	 	—  	 	  	 	—  	 	  	 	3	 	
Interest expense	  	 	43	 	  	 	41	 	  	 	42	 	  	 	46	 	  	 	172	 	  	 	54	 	  	 	53	 	  	 	54	 	  	 	53	 	  	 	214	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total benefits and expenses	  	 	60	 	  	 	47	 	  	 	45	 	  	 	65	 	  	 	217	 	  	 	69	 	  	 	62	 	  	 	68	 	  	 	67	 	  	 	266	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	(66)	 	  	 	(53)	 	  	 	(71)	 	  	 	(10)	 	  	 	(200)	 	  	 	(73)	 	  	 	(51)	 	  	 	(71)	 	  	 	(83)	 	  	 	(278)	 	
Provision (benefit) for income taxes	  	 	(16)	 	  	 	3	 	  	 	(12)	 	  	 	2	 	  	 	(23)	 	  	 	(16)	 	  	 	(21)	 	  	 	(7)	 	  	 	(9)	 	  	 	(53)	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
LOSS FROM CONTINUING OPERATIONS	  	 	(50)	 	  	 	(56)	 	  	 	(59)	 	  	 	(12)	 	  	 	(177)	 	  	 	(57)	 	  	 	(30)	 	  	 	(64)	 	  	 	(74)	 	  	 	(225)	 	
	 										
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:	  			 	  				  				  				  				  				  				  				  				  				
Net investment (gains) losses	  	 	3	 	  	 	10	 	  	 	28	 	  	 	(46)	 	  	 	(5)	 	  	 	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	  	 	(1)	 	  	 	(3)	 	  	 	(5)	 	  	 	8	 	  	 	(1)	 	  	 	(1)	 	  	 	—  	 	  	 	(1)	 	  	 	(5)	 	  	 	(7)	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
ADJUSTED OPERATING LOSS	  	$	(48)	 	  	$	(49)	 	  	$	(38)	 	  	$	(41)	 	  	$	(176)	 	  	$	(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.	
 
35

 
Additional Financial Data

 
36

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

 	  	December 31, 2020	 	  	September 30, 2020	 	 	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 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	  	$	36,698	 	  	 	46	% 	  	$	35,637	 	  	 	44	% 	 	$	35,802	 	  	 	45	% 	 	$	33,056	 	  	 	46	% 	 	$	33,684	 	  	 	45	% 		
Private fixed maturity securities	  	 	14,771	 	  	 	18	 	  	 	14,444	 	  	 	18	 	 	 	13,952	 	  	 	18	 	 	 	12,736	 	  	 	17	 	 	 	13,384	 	  	 	18	 		
Residential mortgage-backed securities(1)	  	 	1,900	 	  	 	2	 	  	 	2,042	 	  	 	3	 	 	 	2,151	 	  	 	3	 	 	 	2,243	 	  	 	3	 	 	 	2,232	 	  	 	3	 		
Commercial mortgage-backed securities	  	 	2,955	 	  	 	4	 	  	 	2,957	 	  	 	4	 	 	 	2,952	 	  	 	4	 	 	 	2,963	 	  	 	4	 	 	 	3,006	 	  	 	4	 		
Other asset-backed securities	  	 	3,301	 	  	 	4	 	  	 	3,241	 	  	 	4	 	 	 	2,921	 	  	 	4	 	 	 	3,061	 	  	 	4	 	 	 	3,257	 	  	 	4	 		
State and political subdivisions	  	 	3,170	 	  	 	4	 	  	 	3,115	 	  	 	4	 	 	 	2,998	 	  	 	4	 	 	 	2,864	 	  	 	4	 	 	 	2,747	 	  	 	4	 		
Non-investment grade fixed maturity securities	  	 	2,995	 	  	 	4	 	  	 	2,980	 	  	 	4	 	 	 	2,768	 	  	 	4	 	 	 	2,128	 	  	 	3	 	 	 	2,029	 	  	 	3	 		
Equity securities:	  				  			 	  				  				 				  				 				  				 				  					
Common stocks and mutual funds	  	 	386	 	  	 	1	 	  	 	529	 	  	 	1	 	 	 	104	 	  	 	—  	 	 	 	91	 	  	 	—  	 	 	 	105	 	  	 	—  	 		
Preferred stocks	  	 	90	 	  	 	—  	 	  	 	100	 	  	 	—  	 	 	 	102	 	  	 	—  	 	 	 	97	 	  	 	—  	 	 	 	134	 	  	 	—  	 		
Commercial mortgage loans, net	  	 	6,743	 	  	 	9	 	  	 	6,880	 	  	 	8	 	 	 	6,917	 	  	 	9	 	 	 	6,915	 	  	 	10	 	 	 	6,963	 	  	 	9	 		
Policy loans	  	 	1,978	 	  	 	2	 	  	 	2,153	 	  	 	3	 	 	 	2,182	 	  	 	3	 	 	 	2,052	 	  	 	3	 	 	 	2,058	 	  	 	3	 		
Cash, cash equivalents, restricted cash and short-term investments	  	 	2,839	 	  	 	3	 	  	 	3,054	 	  	 	4	 	 	 	2,809	 	  	 	3	 	 	 	2,696	 	  	 	3	 	 	 	3,601	 	  	 	5	 		
Securities lending	  	 	67	 	  	 	—  	 	  	 	75	 	  	 	—  	 	 	 	59	 	  	 	—  	 	 	 	58	 	  	 	—  	 	 	 	51	 	  	 	—  	 		
Other invested assets:	  	Limited partnerships	  	 	1,049	 	  	 	1	 	  	 	844	 	  	 	1	 	 	 	764	 	  	 	1	 	 	 	671	 	  	 	1	 	 	 	634	 	  	 	1	 		
	  	Derivatives:	  				  			 	  				  				 				  				 				  				 				  					
	  	Interest rate swaps	  	 	468	 	  	 	1	 	  	 	708	 	  	 	1	 	 	 	939	 	  	 	1	 	 	 	1,002	 	  	 	1	 	 	 	197	 	  	 	—  	 		
	  	Foreign currency swaps	  	 	1	 	  	 	—  	 	  	 	10	 	  	 	—  	 	 	 	17	 	  	 	—  	 	 	 	21	 	  	 	—  	 	 	 	4	 	  	 	—  	 		
	  	Equity index options	  	 	63	 	  	 	—  	 	  	 	67	 	  	 	—  	 	 	 	66	 	  	 	—  	 	 	 	62	 	  	 	—  	 	 	 	81	 	  	 	—  	 		
	  	Other foreign currency contracts	  	 	55	 	  	 	—  	 	  	 	19	 	  	 	—  	 	 	 	2	 	  	 	—  	 	 	 	16	 	  	 	—  	 	 	 	8	 	  	 	—  	 		
	  	Other	  	 	367	 	  	 	1	 	  	 	405	 	  	 	1	 	 	 	414	 	  	 	1	 	 	 	422	 	  	 	1	 	 	 	397	 	  	 	1	 		
	  		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total invested assets and cash	  	$	79,896	 	  	 	100	% 	  	$	79,260	 	  	 	100	% 	 	$	77,919	 	  	 	100	% 	 	$	73,154	 	  	 	100	% 	 	$	74,572	 	  	 	100	% 		
	  		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
	Public Fixed Maturity Securities - Credit Quality:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
	NRSRO(2) Designation	  	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
                           AAA	  	$	9,488	 	  	 	21	% 	  	$	9,732	 	  	 	22	% 	 	$	10,805	 	  	 	25	% 	 	$	11,025	 	  	 	27	% 	 	$	10,160	 	  	 	24	% 		
                             AA	  	 	3,983	 	  	 	9	 	  	 	3,788	 	  	 	8	 	 	 	3,636	 	  	 	8	 	 	 	3,554	 	  	 	8	 	 	 	3,536	 	  	 	8	 		
                               A	  	 	12,080	 	  	 	26	 	  	 	12,094	 	  	 	27	 	 	 	11,970	 	  	 	27	 	 	 	11,268	 	  	 	27	 	 	 	12,315	 	  	 	29	 		
                           BBB	  	 	18,551	 	  	 	40	 	  	 	17,497	 	  	 	39	 	 	 	16,780	 	  	 	37	 	 	 	14,807	 	  	 	35	 	 	 	15,041	 	  	 	36	 		
                             BB	  	 	1,641	 	  	 	4	 	  	 	1,616	 	  	 	4	 	 	 	1,506	 	  	 	3	 	 	 	1,139	 	  	 	3	 	 	 	1,040	 	  	 	3	 		
                               B	  	 	74	 	  	 	—  	 	  	 	71	 	  	 	—  	 	 	 	73	 	  	 	—  	 	 	 	50	 	  	 	—  	 	 	 	44	 	  	 	—  	 		
                     CCC and lower	  	 	6	 	  	 	—  	 	  	 	42	 	  	 	—  	 	 	 	24	 	  	 	—  	 	 	 	21	 	  	 	—  	 	 	 	26	 	  	 	—  	 		
	  		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total public fixed maturity securities	  	$	45,823	 	  	 	100	% 	  	$	44,840	 	  	 	100	% 	 	$	44,794	 	  	 	100	% 	 	$	41,864	 	  	 	100	% 	 	$	42,162	 	  	 	100	% 		
	  		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
	Private Fixed Maturity Securities - Credit Quality:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
	NRSRO(2) Designation	  	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	
                           AAA	  	$	1,666	 	  	 	8	% 	  	$	1,610	 	  	 	8	% 	 	$	1,526	 	  	 	8	% 	 	$	1,382	 	  	 	8	% 	 	$	1,536	 	  	 	8	% 		
                             AA	  	 	2,422	 	  	 	12	 	  	 	2,342	 	  	 	12	 	 	 	2,209	 	  	 	12	 	 	 	2,090	 	  	 	12	 	 	 	2,235	 	  	 	12	 		
                               A	  	 	5,626	 	  	 	28	 	  	 	5,522	 	  	 	28	 	 	 	5,320	 	  	 	28	 	 	 	4,914	 	  	 	28	 	 	 	5,182	 	  	 	29	 		
                           BBB	  	 	8,979	 	  	 	46	 	  	 	8,851	 	  	 	46	 	 	 	8,530	 	  	 	46	 	 	 	7,883	 	  	 	46	 	 	 	8,305	 	  	 	46	 		
                             BB	  	 	1,043	 	  	 	5	 	  	 	1,054	 	  	 	5	 	 	 	994	 	  	 	5	 	 	 	819	 	  	 	5	 	 	 	844	 	  	 	5	 		
                               B	  	 	219	 	  	 	1	 	  	 	183	 	  	 	1	 	 	 	160	 	  	 	1	 	 	 	98	 	  	 	1	 	 	 	73	 	  	 	—  	 		
                     CCC and lower	  	 	12	 	  	 	—  	 	  	 	14	 	  	 	—  	 	 	 	11	 	  	 	—  	 	 	 	1	 	  	 	—  	 	 	 	2	 	  	 	—  	 		
	  		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 		
Total private fixed maturity securities	  	$	19,967	 	  	 	100	% 	  	$	19,576	 	  	 	100	% 	 	$	18,750	 	  	 	100	% 	 	$	17,187	 	  	 	100	% 	 	$	18,177	 	  	 	100	% 		

 

(1) 	The company does not have any material exposure to residential mortgage-backed securities collateralized debt obligations (CDOs).	
(2) 	Nationally Recognized Statistical Rating Organizations.	
 
37

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

 	  	December 31, 2020	 	 	September 30, 2020	 	 	June 30, 2020	 	 	March 31, 2020	 	 	December 31, 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	  	$	4,805	 	 	 	7	% 	 	$	4,792	 	 	 	7	% 	 	$	5,602	 	 	 	9	% 	 	$	5,771	 	 	 	10	% 	 	$	5,025	 	 	 	8	% 	
State and political subdivisions	  	 	3,170	 	 	 	5	 	 	 	3,115	 	 	 	5	 	 	 	2,998	 	 	 	5	 	 	 	2,864	 	 	 	5	 	 	 	2,747	 	 	 	5	 	
Foreign government	  	 	1,559	 	 	 	2	 	 	 	1,395	 	 	 	2	 	 	 	1,542	 	 	 	2	 	 	 	1,201	 	 	 	2	 	 	 	1,350	 	 	 	2	 	
U.S. corporate	  	 	36,114	 	 	 	55	 	 	 	35,234	 	 	 	55	 	 	 	34,395	 	 	 	54	 	 	 	31,077	 	 	 	52	 	 	 	32,111	 	 	 	54	 	
Foreign corporate	  	 	11,914	 	 	 	18	 	 	 	11,543	 	 	 	18	 	 	 	10,885	 	 	 	17	 	 	 	9,799	 	 	 	17	 	 	 	10,525	 	 	 	17	 	
Residential mortgage-backed securities	  	 	1,909	 	 	 	3	 	 	 	2,075	 	 	 	3	 	 	 	2,184	 	 	 	3	 	 	 	2,273	 	 	 	4	 	 	 	2,270	 	 	 	4	 	
Commercial mortgage-backed securities	  	 	2,974	 	 	 	5	 	 	 	2,976	 	 	 	5	 	 	 	2,970	 	 	 	5	 	 	 	2,981	 	 	 	5	 	 	 	3,026	 	 	 	5	 	
Other asset-backed securities	  	 	3,345	 	 	 	5	 	 	 	3,286	 	 	 	5	 	 	 	2,968	 	 	 	5	 	 	 	3,085	 	 	 	5	 	 	 	3,285	 	 	 	5	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturity securities	  	$	65,790	 	 	 	100	% 	 	$	64,416	 	 	 	100	% 	 	$	63,544	 	 	 	100	% 	 	$	59,051	 	 	 	100	% 	 	$	60,339	 	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate Bond Holdings - Industry Sector:	  				 			 	 				 				 				 				 				 				 				 				
	 	 									
Investment Grade:	  				 			 	 				 				 				 				 				 				 				 				
Finance and insurance	  	$	11,692	 	 	 	24	% 	 	$	11,064	 	 	 	24	% 	 	$	10,611	 	 	 	23	% 	 	$	9,523	 	 	 	23	% 	 	$	9,881	 	 	 	23	% 	
Utilities	  	 	6,098	 	 	 	13	 	 	 	6,057	 	 	 	13	 	 	 	6,052	 	 	 	13	 	 	 	5,555	 	 	 	14	 	 	 	5,743	 	 	 	14	 	
Energy	  	 	3,529	 	 	 	7	 	 	 	3,372	 	 	 	7	 	 	 	3,193	 	 	 	7	 	 	 	2,799	 	 	 	7	 	 	 	3,699	 	 	 	9	 	
Consumer - non-cyclical	  	 	7,060	 	 	 	15	 	 	 	6,954	 	 	 	15	 	 	 	6,836	 	 	 	15	 	 	 	6,163	 	 	 	15	 	 	 	6,247	 	 	 	15	 	
Consumer - cyclical	  	 	2,027	 	 	 	4	 	 	 	2,131	 	 	 	5	 	 	 	2,076	 	 	 	5	 	 	 	1,856	 	 	 	4	 	 	 	1,937	 	 	 	5	 	
Capital goods	  	 	3,481	 	 	 	7	 	 	 	3,531	 	 	 	7	 	 	 	3,511	 	 	 	8	 	 	 	3,076	 	 	 	8	 	 	 	3,161	 	 	 	7	 	
Industrial	  	 	2,396	 	 	 	5	 	 	 	2,279	 	 	 	5	 	 	 	2,210	 	 	 	5	 	 	 	2,063	 	 	 	5	 	 	 	2,201	 	 	 	5	 	
Technology and communications	  	 	4,673	 	 	 	10	 	 	 	4,331	 	 	 	9	 	 	 	4,221	 	 	 	9	 	 	 	3,966	 	 	 	10	 	 	 	3,966	 	 	 	9	 	
Transportation	  	 	2,094	 	 	 	4	 	 	 	2,173	 	 	 	5	 	 	 	2,151	 	 	 	5	 	 	 	2,047	 	 	 	5	 	 	 	2,127	 	 	 	5	 	
Other	  	 	2,143	 	 	 	5	 	 	 	2,086	 	 	 	4	 	 	 	1,847	 	 	 	4	 	 	 	1,855	 	 	 	4	 	 	 	1,839	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	45,193	 	 	 	94	 	 	 	43,978	 	 	 	94	 	 	 	42,708	 	 	 	94	 	 	 	38,903	 	 	 	95	 	 	 	40,801	 	 	 	96	 	

Non-Investment Grade:	  				 			 	 				 				 				 				 				 				 				 				
Finance and insurance	  	 	276	 	 	 	1	 	 	 	289	 	 	 	1	 	 	 	258	 	 	 	1	 	 	 	211	 	 	 	1	 	 	 	212	 	 	 	1	 	
Utilities	  	 	97	 	 	 	—  	 	 	 	95	 	 	 	—  	 	 	 	97	 	 	 	—  	 	 	 	77	 	 	 	—  	 	 	 	83	 	 	 	—  	 	
Energy	  	 	769	 	 	 	2	 	 	 	741	 	 	 	2	 	 	 	676	 	 	 	1	 	 	 	391	 	 	 	1	 	 	 	319	 	 	 	1	 	
Consumer - non-cyclical	  	 	234	 	 	 	—  	 	 	 	220	 	 	 	—  	 	 	 	218	 	 	 	1	 	 	 	196	 	 	 	1	 	 	 	138	 	 	 	—  	 	
Consumer - cyclical	  	 	376	 	 	 	1	 	 	 	349	 	 	 	1	 	 	 	297	 	 	 	1	 	 	 	225	 	 	 	1	 	 	 	220	 	 	 	1	 	
Capital goods	  	 	136	 	 	 	—  	 	 	 	152	 	 	 	—  	 	 	 	130	 	 	 	—  	 	 	 	149	 	 	 	—  	 	 	 	155	 	 	 	—  	 	
Industrial	  	 	340	 	 	 	1	 	 	 	340	 	 	 	1	 	 	 	288	 	 	 	1	 	 	 	193	 	 	 	—  	 	 	 	183	 	 	 	—  	 	
Technology and communications	  	 	465	 	 	 	1	 	 	 	452	 	 	 	1	 	 	 	437	 	 	 	1	 	 	 	418	 	 	 	1	 	 	 	417	 	 	 	1	 	
Transportation	  	 	17	 	 	 	—  	 	 	 	56	 	 	 	—  	 	 	 	49	 	 	 	—  	 	 	 	29	 	 	 	—  	 	 	 	8	 	 	 	—  	 	
Other	  	 	125	 	 	 	—  	 	 	 	105	 	 	 	—  	 	 	 	122	 	 	 	—  	 	 	 	84	 	 	 	—  	 	 	 	100	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	2,835	 	 	 	6	 	 	 	2,799	 	 	 	6	 	 	 	2,572	 	 	 	6	 	 	 	1,973	 	 	 	5	 	 	 	1,835	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	48,028	 	 	 	100	% 	 	$	46,777	 	 	 	100	% 	 	$	45,280	 	 	 	100	% 	 	$	40,876	 	 	 	100	% 	 	$	42,636	 	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed Maturity Securities - Contractual Maturity Dates:	  				 			 	 				 				 				 				 				 				 				 				
	 	 									
Due in one year or less	  	$	1,447	 	 	 	2	% 	 	$	1,499	 	 	 	2	% 	 	$	1,517	 	 	 	2	% 	 	$	1,421	 	 	 	2	% 	 	$	1,434	 	 	 	2	% 	
Due after one year through five years	  	 	10,586	 	 	 	16	 	 	 	10,265	 	 	 	16	 	 	 	10,054	 	 	 	16	 	 	 	8,949	 	 	 	15	 	 	 	9,381	 	 	 	16	 	
Due after five years through ten years	  	 	15,177	 	 	 	23	 	 	 	14,863	 	 	 	23	 	 	 	14,478	 	 	 	23	 	 	 	12,642	 	 	 	21	 	 	 	12,296	 	 	 	20	 	
Due after ten years	  	 	30,352	 	 	 	46	 	 	 	29,452	 	 	 	46	 	 	 	29,373	 	 	 	46	 	 	 	27,700	 	 	 	48	 	 	 	28,647	 	 	 	48	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	57,562	 	 	 	87	 	 	 	56,079	 	 	 	87	 	 	 	55,422	 	 	 	87	 	 	 	50,712	 	 	 	86	 	 	 	51,758	 	 	 	86	 	
Mortgage and asset-backed securities	  	 	8,228	 	 	 	13	 	 	 	8,337	 	 	 	13	 	 	 	8,122	 	 	 	13	 	 	 	8,339	 	 	 	14	 	 	 	8,581	 	 	 	14	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturity securities	  	$	65,790	 	 	 	100	% 	 	$	64,416	 	 	 	100	% 	 	$	63,544	 	 	 	100	% 	 	$	59,051	 	 	 	100	% 	 	$	60,339	 	 	 	100	% 	

 
38

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

 
																																									
 	  	2020	 	 	2019	 	
	  	 	4Q	 	  	 	3Q	 	 	 	2Q	 	 	 	1Q	 	 	 	Total	 	 	 	4Q	 	 	 	3Q	 	 	 	2Q	 	 	 	1Q	 	 	 	Total	 	
U.S. GAAP Net Investment Income	  			 	  				 				 				 				 				 				 				 				 				
Fixed maturity securities - taxable	  	$	625	 	  	$	632	 	 	$	601	 	 	$	622	 	 	$	2,480	 	 	$	616	 	 	$	631	 	 	$	634	 	 	$	613	 	 	$	2,494	 	
Fixed maturity securities - non-taxable	  	 	1	 	  	 	2	 	 	 	1	 	 	 	2	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	8	 	
Equity securities	  	 	6	 	  	 	3	 	 	 	2	 	 	 	2	 	 	 	13	 	 	 	3	 	 	 	4	 	 	 	5	 	 	 	4	 	 	 	16	 	
Commercial mortgage loans	  	 	94	 	  	 	82	 	 	 	84	 	 	 	85	 	 	 	345	 	 	 	94	 	 	 	87	 	 	 	85	 	 	 	82	 	 	 	348	 	
Other invested assets	  	 	65	 	  	 	57	 	 	 	52	 	 	 	49	 	 	 	223	 	 	 	50	 	 	 	49	 	 	 	47	 	 	 	44	 	 	 	190	 	
Limited partnerships	  	 	38	 	  	 	22	 	 	 	14	 	 	 	(2	) 	 	 	72	 	 	 	4	 	 	 	13	 	 	 	12	 	 	 	15	 	 	 	44	 	
Policy loans	  	 	50	 	  	 	51	 	 	 	49	 	 	 	49	 	 	 	199	 	 	 	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	  	 	879	 	  	 	851	 	 	 	807	 	 	 	818	 	 	 	3,355	 	 	 	820	 	 	 	841	 	 	 	841	 	 	 	817	 	 	 	3,319	 	
Expenses and fees	  	 	(25	) 	  	 	(24	) 	 	 	(21	) 	 	 	(25	) 	 	 	(95	) 	 	 	(26	) 	 	 	(25	) 	 	 	(25	) 	 	 	(23	) 	 	 	(99	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment income	  	$	854	 	  	$	827	 	 	$	786	 	 	$	793	 	 	$	3,260	 	 	$	794	 	 	$	816	 	 	$	816	 	 	$	794	 	 	$	3,220	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Annualized Yields	  			 	  				 				 				 				 				 				 				 				 				
Fixed maturity securities - taxable	  	 	4.5	% 	  	 	4.6	% 	 	 	4.4	% 	 	 	4.6	% 	 	 	4.5	% 	 	 	4.6	% 	 	 	4.7	% 	 	 	4.7	% 	 	 	4.6	% 	 	 	4.6	% 	
Fixed maturity securities - non-taxable	  	 	3.1	% 	  	 	6.2	% 	 	 	2.6	% 	 	 	5.2	% 	 	 	4.3	% 	 	 	6.0	% 	 	 	6.1	% 	 	 	6.1	% 	 	 	6.1	% 	 	 	6.1	% 	
Equity securities	  	 	4.3	% 	  	 	2.9	% 	 	 	4.1	% 	 	 	3.8	% 	 	 	3.7	% 	 	 	5.0	% 	 	 	6.4	% 	 	 	7.8	% 	 	 	6.1	% 	 	 	6.3	% 	
Commercial mortgage loans	  	 	5.5	% 	  	 	4.8	% 	 	 	4.9	% 	 	 	4.9	% 	 	 	5.0	% 	 	 	5.4	% 	 	 	5.0	% 	 	 	4.9	% 	 	 	4.8	% 	 	 	5.0	% 	
Other invested assets(1)	  	 	67.4	% 	  	 	55.7	% 	 	 	49.8	% 	 	 	47.8	% 	 	 	55.6	% 	 	 	52.2	% 	 	 	54.0	% 	 	 	56.1	% 	 	 	65.7	% 	 	 	57.2	% 	
Limited partnerships(2)	  	 	16.1	% 	  	 	10.9	% 	 	 	7.8	% 	 	 	(1.2	)% 	 	 	9.1	% 	 	 	2.7	% 	 	 	9.7	% 	 	 	9.9	% 	 	 	13.8	% 	 	 	8.5	% 	
Policy loans	  	 	9.7	% 	  	 	9.4	% 	 	 	9.3	% 	 	 	9.5	% 	 	 	9.5	% 	 	 	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	% 	 	 	0.6	% 	 	 	1.3	% 	 	 	1.7	% 	 	 	2.2	% 	 	 	2.1	% 	 	 	1.7	% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross investment income before expenses and fees	  	 	5.1	% 	  	 	5.0	% 	 	 	4.8	% 	 	 	4.9	% 	 	 	4.9	% 	 	 	4.9	% 	 	 	5.1	% 	 	 	5.1	% 	 	 	5.0	% 	 	 	5.0	% 	
Expenses and fees	  	 	(0.2	)% 	  	 	(0.2	)% 	 	 	(0.1	)% 	 	 	(0.2	)% 	 	 	(0.1	)% 	 	 	(0.2	)% 	 	 	(0.2	)% 	 	 	(0.1	)% 	 	 	(0.2	)% 	 	 	(0.1	)% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment income	  	 	4.9	% 	  	 	4.8	% 	 	 	4.7	% 	 	 	4.7	% 	 	 	4.8	% 	 	 	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 43 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.	
 
39

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

 	  	2020	 	 	2019	 	
 	  	4Q	 	  	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	 	4Q	 	 	3Q	 	 	2Q	 	 	1Q	 	 	Total	 	
Net realized gains (losses) on available-for-sale securities:	  			 	  				 				 				 				 				 				 				 				 				
Fixed maturity securities:	  			 	  				 				 				 				 				 				 				 				 				
U.S. corporate	  	$	7	 	  	$	2	 	 	$	2	 	 	$	2	 	 	$	13	 	 	$	(2	) 	 	$	11	 	 	$	(16	) 	 	$	30	 	 	$	23	 	
U.S. government, agencies and government-sponsored enterprises	  	 	—  	 	  	 	316	 	 	 	94	 	 	 	—  	 	 	 	410	 	 	 	—  	 	 	 	—  	 	 	 	2	 	 	 	33	 	 	 	35	 	
Foreign corporate	  	 	5	 	  	 	1	 	 	 	4	 	 	 	—  	 	 	 	10	 	 	 	1	 	 	 	1	 	 	 	(1	) 	 	 	(1	) 	 	 	—  	 	
Foreign government	  	 	—  	 	  	 	12	 	 	 	10	 	 	 	5	 	 	 	27	 	 	 	4	 	 	 	2	 	 	 	2	 	 	 	—  	 	 	 	8	 	
Tax exempt	  	 	1	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Mortgage-backed securities	  	 	11	 	  	 	—  	 	 	 	4	 	 	 	—  	 	 	 	15	 	 	 	—  	 	 	 	1	 	 	 	1	 	 	 	(2	) 	 	 	—  	 	
Asset-backed securities	  	 	(1	) 	  	 	—  	 	 	 	(2	) 	 	 	—  	 	 	 	(3	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	(1	) 	
Foreign exchange	  	 	(2	) 	  	 	(1	) 	 	 	2	 	 	 	6	 	 	 	5	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	(1	) 	 	 	3	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total net realized gains (losses) on available-for-sale securities	  	 	21	 	  	 	330	 	 	 	114	 	 	 	13	 	 	 	478	 	 	 	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	  	 	2	 	  	 	(3	) 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	6	 	 	 	—  	 	 	 	3	 	 	 	9	 	
Net unrealized gains (losses) on equity securities still held	  	 	9	 	  	 	3	 	 	 	9	 	 	 	(19	) 	 	 	2	 	 	 	1	 	 	 	(4	) 	 	 	5	 	 	 	12	 	 	 	14	 	
Limited partnerships	  	 	84	 	  	 	31	 	 	 	37	 	 	 	(40	) 	 	 	112	 	 	 	19	 	 	 	6	 	 	 	(11	) 	 	 	15	 	 	 	29	 	
Commercial mortgage loans	  	 	—  	 	  	 	(3	) 	 	 	1	 	 	 	—  	 	 	 	(2	) 	 	 	(1	) 	 	 	(1	) 	 	 	1	 	 	 	(1	) 	 	 	(2	) 	
Derivative instruments	  	 	56	 	  	 	22	 	 	 	10	 	 	 	(105	) 	 	 	(17	) 	 	 	(1	) 	 	 	(29	) 	 	 	(30	) 	 	 	(12	) 	 	 	(72	) 	
Other	  	 	4	 	  	 	(3	) 	 	 	(5	) 	 	 	(1	) 	 	 	(5	) 	 	 	1	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	5	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment gains (losses), gross	  	 	176	 	  	 	375	 	 	 	159	 	 	 	(152	) 	 	 	558	 	 	 	23	 	 	 	(2	) 	 	 	(46	) 	 	 	75	 	 	 	50	 	
Adjustment for DAC and other intangible amortization and certain benefit reserves	  	 	(3	) 	  	 	(1	) 	 	 	4	 	 	 	11	 	 	 	11	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	2	 	 	 	11	 	
Adjustment for net investment (gains) losses attributable to noncontrolling interests	  	 	(13	) 	  	 	(12	) 	 	 	(32	) 	 	 	26	 	 	 	(31	) 	 	 	(9	) 	 	 	4	 	 	 	—  	 	 	 	(6	) 	 	 	(11	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment gains (losses), net	  	$	160	 	  	$	362	 	 	$	131	 	 	$	(115	) 	 	$	538	 	 	$	17	 	 	$	5	 	 	$	(43	) 	 	$	71	 	 	$	50	 	

 
40

 
Reconciliations of Non-GAAP Measures

 
41

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

 
																						
	Twelve Month Rolling Average ROE	  	Twelve months ended	 	
U.S. GAAP Basis ROE	  	December 31,
2020	 	 	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 		
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended(1)	  	$	178	 	 	$	(106	) 	 	$	(506	) 	 	$	103	 	 	$	343	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income(2)	  	$	10,618	 	 	$	10,592	 	 	$	10,618	 	 	$	10,695	 	 	$	10,650	 		
U.S. GAAP Basis ROE(1)/(2)	  	 	1.7	% 	 	 	(1.0	)% 	 	 	(4.8	)% 	 	 	1.0	% 	 	 	3.2	% 		
							
Operating ROE	  				 				 				 				 					
Adjusted operating income for the twelve months ended(1)	  	$	317	 	 	$	168	 	 	$	159	 	 	$	358	 	 	$	420	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income(2)	  	$	10,618	 	 	$	10,592	 	 	$	10,618	 	 	$	10,695	 	 	$	10,650	 		
Operating ROE(1)/(2)	  	 	3.0	% 	 	 	1.6	% 	 	 	1.5	% 	 	 	3.3	% 	 	 	3.9	% 		
			
	Quarterly Average ROE	  	Three months ended	 	
U.S. GAAP Basis ROE	  	December 31,
2020	 	 	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 	 	December 31,
2019	 		
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended(3)	  	$	267	 	 	$	418	 	 	$	(441	) 	 	$	(66	) 	 	$	(17	) 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income(4)	  	$	10,754	 	 	$	10,625	 	 	$	10,415	 	 	$	10,693	 	 	$	10,759	 		
Annualized U.S. GAAP Quarterly Basis ROE(3)/(4)	  	 	9.9	% 	 	 	15.7	% 	 	 	(16.9	)% 	 	 	(2.5	)% 	 	 	(0.6	)% 		
							
Operating ROE	  				 				 				 				 					
Adjusted operating income (loss) for the period ended(3)	  	$	173	 	 	$	132	 	 	$	(21	) 	 	$	33	 	 	$	24	 		
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income(4)	  	$	10,754	 	 	$	10,625	 	 	$	10,415	 	 	$	10,693	 	 	$	10,759	 		
Annualized Operating Quarterly Basis ROE(3)/(4)	  	 	6.4	% 	 	 	5.0	% 	 	 	(0.8	)% 	 	 	1.2	% 	 	 	0.9	% 		
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
FOURTH QUARTER 2020
 
Reconciliation of Reported Yield to Core Yield

 	  	 	  	2020	 	 	2019	 	
	  	(Assets - amounts in billions)	  	 	4Q	 	  	 	3Q	 	 	 	2Q	 	 	 	1Q	 	 	 	Total	 	 	 	4Q	 	 	 	3Q	 	 	 	2Q	 	 	 	1Q	 	 	 	Total	 	
	  	Reported - Total Invested Assets and Cash	  	$	79.9	 	  	$	79.3	 	 	$	77.9	 	 	$	73.2	 	 	$	79.9	 	 	$	74.6	 	 	$	73.9	 	 	$	72.0	 	 	$	69.5	 	 	$	74.6	 	
	  	Subtract:	  			 	  				 				 				 				 				 				 				 				 				
	  	Securities lending	  	 	0.1	 	  	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	
	  	Unrealized gains (losses)	  	 	10.7	 	  	 	10.0	 	 	 	9.7	 	 	 	6.0	 	 	 	10.7	 	 	 	6.9	 	 	 	7.5	 	 	 	5.7	 	 	 	3.7	 	 	 	6.9	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Adjusted end of period invested assets and cash	  	$	69.1	 	  	$	69.2	 	 	$	68.1	 	 	$	67.1	 	 	$	69.1	 	 	$	67.6	 	 	$	66.3	 	 	$	66.2	 	 	$	65.7	 	 	$	67.6	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(A)	  	Average Invested Assets and Cash Used in Reported and Core Yield Calculation	  	$	69.2	 	  	$	68.7	 	 	$	67.6	 	 	$	67.3	 	 	$	68.2	 	 	$	66.9	 	 	$	66.2	 	 	$	66.0	 	 	$	65.7	 	 	$	66.3	 	
		 										
	  	(Income - amounts in millions)	  			 	  				 				 				 				 				 				 				 				 				
		 										
(B)	  	Reported - Net Investment Income	  	$	854	 	  	$	827	 	 	$	786	 	 	$	793	 	 	$	3,260	 	 	$	794	 	 	$	816	 	 	$	816	 	 	$	794	 	 	$	3,220	 	
	  	Subtract:	  			 	  				 				 				 				 				 				 				 				 				
	  	Bond calls and commercial mortgage loan prepayments	  	 	40	 	  	 	23	 	 	 	8	 	 	 	16	 	 	 	87	 	 	 	23	 	 	 	13	 	 	 	7	 	 	 	6	 	 	 	49	 	
	  	Other non-core items(1)	  	 	6	 	  	 	6	 	 	 	2	 	 	 	7	 	 	 	21	 	 	 	(2	) 	 	 	8	 	 	 	7	 	 	 	2	 	 	 	15	 	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(C)	  	Core Net Investment Income	  	$	808	 	  	$	798	 	 	$	776	 	 	$	770	 	 	$	3,152	 	 	$	773	 	 	$	795	 	 	$	802	 	 	$	786	 	 	$	3,156	 	

(B) / (A)	  	Reported Yield	  	 	4.94	% 	  	 	4.82	% 	 	 	4.65	% 	 	 	4.71	% 	 	 	4.78	% 	 	 	4.74	% 	 	 	4.93	% 	 	 	4.95	% 	 	 	4.83	% 	 	 	4.86	% 	
(C) / (A)	  	Core Yield	  	 	4.67	% 	  	 	4.65	% 	 	 	4.59	% 	 	 	4.57	% 	 	 	4.62	% 	 	 	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

 
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2020
Financial Strength Ratings As Of February 12, 2021

	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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