EX-12 2 dex12.htm EXHIBIT 12 Exhibit 12

Exhibit 12

Genworth Financial, Inc.

Statement of Ratio of Income to Fixed Charges

(Dollar amounts in millions)

 

    Nine months
ended
September 30,
2009		     Years ended December 31,
    2008     2007   2006   2005   2004

Income (loss) from continuing operations before income taxes and accounting changes

   $ (894 )    $ (942 )    $ 1,606   $ 1,853   $ 1,745   $ 1,584

Less: income attributable to noncontrolling interests before income taxes

     40       —          —       —       —       —  
                                       

Income (loss) from continuing operations before income taxes and accounting changes and excluding income attributable to noncontrolling interests

   $ (934 )    $ (942 )    $ 1,606   $ 1,853   $ 1,745   $ 1,584
                                       

Fixed charges included in income (loss) from continuing operations:

            

Interest expense

   $ 306      $ 470      $ 481   $ 364   $ 293   $ 217

Interest portion of rental expense

     10        18        15     15     13     14
                                       

Subtotal

     316        488        496     379     306     231

Interest credited to investment contractholders

     763        1,293        1,552     1,520     1,423     1,431
                                       

Total fixed charges from continuing operations

     1,079        1,781        2,048     1,899     1,729     1,662
                                       

Fixed charges included in income from discontinued operations:

            

Interest expense

     —          —          —       —       —       —  

Interest portion of rental expense

     —          —          —       —       —       —  
                                       

Subtotal

     —          —          —       —       —       —  

Interest credited to investment contractholders

     —          —          1     2     2     1
                                       

Total fixed charges from discontinued operations

     —          —          1     2     2     1
                                       

Total fixed charges

   $ 1,079      $ 1,781      $ 2,049   $ 1,901   $ 1,731   $ 1,663
                                       

Income (loss) available for fixed charges (including interest credited to investment contractholders)

   $ 145      $ 839      $ 3,655   $ 3,754   $ 3,476   $ 3,247
                                       

Ratio of income (loss) to fixed charges (including interest credited to investment contractholders)

     0.13        0.47        1.78     1.97     2.01     1.95
                                       

Income (loss) available for fixed charges (excluding interest credited to investment contractholders)

   $ (618 )    $ (454 )    $ 2,102   $ 2,232   $ 2,051   $ 1,815
                                       

Ratio of income (loss) to fixed charges (excluding interest credited to investment contractholders)

     (1.96 )      (0.93 )      4.24     5.89     6.70     7.86
                                       

For the nine months ended September 30, 2009, additional income required to achieve a 1:1 ratio coverage was $934 million.

For the year ended December 31, 2008, additional income required to achieve a 1:1 ratio coverage was $942 million.