8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

July 20, 2011

Date of Report

(Date of earliest event reported)

GENWORTH FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-32195	33-1073076
(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))

Item 2.02 Results of Operations and Financial Condition.

On July 20, 2011, Genworth Financial, Inc. issued (1) a press release announcing its preliminary financial results for the quarter ended June 30, 2011, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (2) a preliminary statistical supplement for U.S. Mortgage Insurance for the quarter ended June 30, 2011, 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 the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01 Financial Statements and Exhibits.

The following materials are furnished as exhibits to this Current Report on Form 8-K:

Exhibit Number	Description of Exhibit
99.1	Press Release dated July 20, 2011.
99.2	Preliminary Statistical Supplement – U.S. Mortgage Insurance for the quarter ended June 30, 2011.

2

SIGNATURES

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

	GENWORTH FINANCIAL, INC.
Date: July 20, 2011	By:	/s/ Amy R. Corbin
		Amy R. Corbin
		Vice President and Controller
		(Principal Accounting Officer)

3

Exhibit Index

Exhibit Number	Description of Exhibit
99.1	Press Release dated July 20, 2011.
99.2	Preliminary Statistical Supplement – U.S. Mortgage Insurance for the quarter ended June 30, 2011.

4

EX-99.1

Exhibit 99.1

Genworth Announces Preliminary Second Quarter 2011 Results

Strengthens U.S. Mortgage Insurance Reserves by $300 Million

RICHMOND, VA, July 20, 2011 – Genworth Financial, Inc. (NYSE: GNW) today announced preliminary results for the second quarter of 2011. The company expects to report an estimated net loss¹ of $92 to $112 million, or $0.19 to $0.23 per diluted share, reflecting a reserve strengthening of approximately $300 million in its U.S. Mortgage Insurance (U.S. MI) business. This compares with net income of $42 million, or $0.08 per diluted share, in the second quarter of 2010. The net operating loss² for the quarter is estimated to be $70 to $90 million, or $0.14 to $0.18 per diluted share, compared to net operating income of $118 million, or $0.24 per diluted share, in the second quarter of 2010.

The reserve strengthening, together with U.S. MI operating performance, will result in an expected U.S. MI segment level operating loss of $250 to $255 million in the second quarter. The company is executing a non-cash intercompany transaction to provide capital support to the U.S. MI segment. The company will use a portion of its common shares of Genworth MI Canada Inc. with an estimated market value of $375 million, currently held in a non-U.S. subsidiary in the International segment. Including this transaction, which is subject to customary regulatory approval and will be effective in the second quarter on a statutory basis, the U.S. MI segment expects to report a consolidated risk-to-capital ratio of 25:1 to 26:1.

¹  Unless otherwise stated, all references in this press release to net income (loss), net income (loss) per share, net operating income (loss) and net operating income (loss) 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 share, net operating income (loss) available to Genworth’s common stockholders and net operating income (loss) available to Genworth’s common stockholders per share, respectively.

²  This is a financial measure 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

The company estimates the International segment will report operating income of $105 to $110 million in the second quarter, with all operating entities reporting continued sound capital ratios. Total 2011 dividends from the International segment continue to be estimated at approximately $350 million. The company estimates the Retirement and Protection segment will report operating income of $145 to $150 million in the quarter. The consolidated statutory risk based capital (RBC) ratio for the U.S. life companies at the end of the second quarter is expected to be 380 to 390 percent.

Investment performance continued to improve, with net investment income of approximately $880 million, compared to $830 million in the first quarter. After-tax impairments are expected to decline to approximately $20 million in the second quarter. Net unrealized investment gains are expected to be approximately $235 million, net of tax and other items, as of June 30, 2011, compared with net unrealized investment losses of $37 million as of March 31, 2011.

At the end of the second quarter, the holding company had $667 million of cash and highly liquid securities, after retiring $548 million of debt, including preferred stock, that matured during the quarter.

The company’s decision to record a reserve strengthening in the second quarter was the result of worsening trends in recent experience associated with its U.S. MI business as well as related market trends in an environment of continuing weakness in the U.S. residential real estate market. U.S. MI results reflect a decline in cure rates during the quarter for delinquent loans and continued aging trends in the delinquent loan inventory. These trends are associated with a range of factors, including slow-moving pipelines of mortgages in some stage of foreclosure and delinquent loans under consideration for loan modifications. Specifically, reduced cure rates were driven by lower borrower self-cures and lower levels of lender loan modifications outside of government-sponsored modification programs. After the reserve strengthening, the average flow reserve per delinquency is $29,200 up from

2

$25,400 at the end of the first quarter. Through the first half of 2011, the business achieved loss mitigation savings of approximately $250 million toward the targeted total year savings of $400 to $500 million. The company maintains new business writing flexibility in all states, supported by risk-to-capital waivers in 46 states in its primary writing entity, with the remaining four states written out of other available entities.

Additional information regarding investments and cash positions and a preliminary statistical supplement for U.S. MI, including additional tables on U.S. MI reserving, are posted on the company’s website, http://genworth.com/investor. Genworth is completing its financial close process and will issue its earnings release and financial supplement containing second quarter results after the market closes on July 28, 2011. As previously announced, a conference call will be held on July 29, 2011 at 9:00 a.m. (ET) to discuss the quarter’s results. The earnings release and second quarter financial supplement will be available through the company’s website, http://genworth.com/investor, at the time of their release to the public.

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company with more than $100 billion in assets that is dedicated to helping people secure their financial lives, families and futures. Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement – including life insurance, long term care insurance, financial protection coverages, and independent advisor-based wealth management – and mortgage insurance that helps consumers achieve homeownership while assisting lenders in managing their risk and capital.

Genworth has approximately 6,500 employees and operates through three segments: Retirement and Protection, U.S. Mortgage Insurance and International. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. 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

3

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.

Use of Non-GAAP Measures

This press release includes the non-GAAP financial measure entitled “net operating income (loss).” The chief operating decision maker evaluates segment performance and allocates resources on the basis of net operating income (loss) available to Genworth Financial, Inc.’s common stockholders. The company defines net operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding net income attributable to noncontrolling interests, after-tax net investment gains (losses) and other adjustments and infrequent or unusual non-operating items. This metric excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Infrequent or unusual non-operating items are also excluded from net operating income (loss) available to Genworth Financial, Inc.’s common stockholders 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 GAAP, the company believes that net operating income (loss) available to Genworth Financial, Inc.’s common stockholders and measures that are derived from or incorporate net operating income (loss) available to Genworth Financial, Inc.’s common stockholders, including net operating income available to Genworth Financial, Inc.’s common stockholders per common 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. However, net operating income (loss) available to Genworth Financial, Inc.’s common

4

stockholders and net operating income available to Genworth Financial, Inc.’s common stockholders per common 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 available to Genworth Financial, Inc.’s common stockholders per common share on a basic and diluted basis determined in accordance with GAAP. In addition, the company’s definition of net operating income (loss) available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies. There were no infrequent or unusual non-operating items excluded from net operating income (loss) available to Genworth Financial, Inc.’s common stockholders during the periods presented. The table at the end of this press release is a reconciliation of net operating income (loss) to net income (loss) available to Genworth Financial, Inc.’s common stockholders for the three months ended June 30, 2011 and 2010.

Definition of Selected Operating Performance Measures

This press release includes information related to loss mitigation activities for the U.S. mortgage insurance business. The company defines loss mitigation activities as rescissions, cancellations, borrower loan modifications, repayment plans, lender- and borrower-titled presales and other loan workouts and claim mitigation actions. Estimated savings related to rescissions are the reduction in carried loss reserves, net of premium refunds and reinstatement of prior rescissions. Estimated savings related to loan modifications and other cure related loss mitigation actions represent the reduction in carried loss reserves. For non-cure related actions, including presales, the estimated savings represent the difference between the full claim obligation and the actual amount paid. The company believes that this information helps to enhance the understanding of the operating performance of the U.S. mortgage insurance business as they specifically impact current and future loss reserves and level of claim payments.

This operating measure enables 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

Cautionary Note Regarding Forward-Looking Statements

As the company has not completed its quarterly financial close process and its analysis of the second quarter of 2011, the results presented in this press release are estimated and preliminary and, therefore, may change.

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. 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 due to global political, economic, business, competitive, market, regulatory and other factors and risks, including the following:

• Risks relating to the company’s businesses, including downturns and volatility in global economies and equity and credit markets, downgrades in the company’s financial strength or credit ratings, interest rate fluctuations and levels, adverse capital and credit market conditions, the valuation of fixed maturity, equity and trading securities, defaults, downgrade or other events impacting the value of the company’s fixed maturity securities portfolio, defaults on the company’s commercial mortgage loans or the mortgage loans underlying the company’s investments in commercial mortgage-backed securities and volatility in performance, goodwill impairments, default by counterparties to reinsurance arrangements or derivative instruments, an adverse change in risk based capital and other regulatory requirements, insufficiency of reserves, legal constraints on dividend distributions by the company’s subsidiaries, competition, availability, affordability and adequacy of reinsurance, loss of key distribution partners, regulatory restrictions on the company’s operations and changes in applicable laws and regulations, legal or regulatory investigations or actions, the failure or any compromise of the security of the company’s computer systems, the occurrence of natural or man-made

6

disasters or a pandemic, the effect of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, changes in the accounting standards issued by the Financial Accounting Standards Board or other standard-setting bodies and impairments of or valuation allowances against the company’s deferred tax assets;

• Risks relating to the company’s Retirement and Protection segment, including changes in morbidity and mortality, accelerated amortization of deferred acquisition costs and present value of future profits, reputational risks as a result of rate increases on certain in force long term care insurance products, medical advances, such as genetic research and diagnostic imaging, and related legislation, unexpected changes in persistency rates, ability to continue to implement actions to mitigate the impact of statutory reserve requirements and the failure of demand for long term care insurance to increase;

• Risks relating to the company’s International segment, including political and economic instability or changes in government policies, foreign exchange rate fluctuations, unexpected changes in unemployment rates, unexpected increases in mortgage insurance default rates or severity of defaults, the significant portion of high loan to value insured international mortgage loans which generally result in more and larger claims than lower loan-to-value ratios, competition with government owned and government sponsored enterprises offering mortgage insurance and changes in regulations;

• Risks relating to the company’s U.S. Mortgage Insurance segment, including increases in mortgage insurance default rates, failure to meet, or have waived to the extent needed, the minimum statutory capital requirements and hazardous financial condition standards, uncertain results of continued investigations of insured U.S. mortgage loans, possible rescissions of coverage and the results of objections to our rescissions, the extent to which loan modifications and other similar programs may provide benefits to the company, unexpected changes in unemployment and underemployment rates, further deterioration in economic conditions or a further decline in home prices, problems associated with foreclosure process defects that may defer claim payments, changes to the role or structure of Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac), competition with government owned and government sponsored enterprises offering mortgage

7

insurance, changes in regulations that affect the U.S. mortgage insurance business, the influence of Fannie Mae, Freddie Mac and a small number of large mortgage lenders and investors, 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 by lenders in the level of coverage they select, the impact of the use of reinsurance with reinsurance companies affiliated with mortgage lending customers, legal actions under the Real Estate Settlement Procedures Act of 1974 and potential liabilities in connection with the company’s underwriting services;

• Other risks, including the possibility that in certain circumstances the company will be obligated to make payments to General Electric Company (GE) under the tax matters agreement with GE even if the company’s corresponding tax savings are never realized and payments could be accelerated in the event of certain changes in control and provisions of the company’s certificate of incorporation and bylaws, the tax matters agreement with GE may discourage takeover attempts and business combinations that stockholders might consider in their best interests, and the fact that the company has not yet completed its quarterly financial close process and its analysis of the second quarter of 2011 and therefore the preliminary results presented in this press release may change; and

• Risks relating to the company’s common stock, including the suspension of dividends and stock price fluctuations.

The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

###

8

Contact Information:

Investors – Diana Hickert-Hill, 804 662.2643

diana.hickert-hill@genworth.com

Media – Al Orendorff, 804 662.2534

al.orendorff@genworth.com

www.genworth.com/presscenter

9

Reconciliation of Net Operating Income (Loss) to Net Income (Loss)

(Amounts in millions, except per share amounts)

	Three months ended June 30, 2011						Three months ended June 30, 2010
	Estimated
	Low			High			Actual
Net operating income (loss)	$	(90	)	$	(70	)	$	118
Adjustment to net operating income (loss):
Net investment gains (losses)		(22	)		(22	)		(76	)
Net income (loss) available to Genworth Financial, Inc.’s common stockholders		(112	)		(92	)		42
Add: net income attributable to noncontrolling interests		35			40			35
Net income (loss)	$	(77	)	$	(52	)	$	77
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share:
Basic	$	(0.23	)	$	(0.19	)	$	0.09
Diluted	$	(0.23	)	$	(0.19	)	$	0.08
Net operating income (loss) per common share:
Basic	$	(0.18	)	$	(0.14	)	$	0.24
Diluted	$	(0.18	)	$	(0.14	)	$	0.24
Weighted-average common shares outstanding:
Basic		490.6			490.6			489.1
Diluted		490.6			490.6			494.2

10

EX-99.2

Exhibit 99.2

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Table of Contents	Page
Performance Measures—Other Metrics		3
Performance Measures—Loss Metrics		4
Performance Measures—Portfolio Quality Metrics		5-9
Performance Measures—Other Metrics-Bulk Risk In-Force		10
Performance Measures—Aggregate Book Year Analysis Provided to Illustrate Directional Progression Toward Captive Attachment		11

Note:

As the company has not completed its quarterly financial close process and its analysis of the second quarter of 2011, the results presented in this statistical supplement are estimated and preliminary and, therefore, may change.

Selected Operating Performance Measures

This preliminary statistical supplement contains selected operating performance measures including “insurance in-force” or “risk in-force” which are commonly used in the insurance and investment industries as measures of operating performance.

Management regularly monitors and reports insurance in-force and risk in-force for the U.S. mortgage insurance business. Insurance in-force is a measure of the aggregate face value of outstanding insurance policies as of the respective reporting date. Risk in-force is the obligation that is limited under contractual terms to the amounts less than 100% of the mortgage loan value. The company considers insurance in-force and risk in-force to be a measure of the company’s operating performance because they represent a measure of the size of the business at a specific date which will generate revenues and profits in a future period, rather than a measure of the company’s revenues or profitability during that period.

This preliminary statistical supplement also includes information related to loss mitigation activities for the U.S. mortgage insurance business. The company defines loss mitigation activities as rescissions, cancellations, borrower loan modifications, repayment plans, lender- and borrower-titled presales, claims curtailment and other loan workouts and claim mitigation actions. Estimated savings related to rescissions are the reduction in carried loss reserves, net of premium refunds and reinstatement of prior rescissions. Estimated savings related to loan modifications and other cure related loss mitigation actions represent the reduction in carried loss reserves. For non-cure related actions, including presales, the estimated savings represent the difference between the full claim obligation and the actual amount paid. The company believes that this information helps to enhance the understanding of the operating performance of the U.S. mortgage insurance business as they specifically impact current and future loss reserves and level of claim payments.

These operating 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.

2

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Other Metrics

(dollar amounts in millions)

	2011									2010
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
New Insurance Written (NIW)	$	1,900		$	2,400		$	4,300		$	3,200		$	2,700		$	2,200		$	1,700		$	9,800
Net Premiums Written	$	145		$	142		$	287		$	151		$	148		$	152		$	142		$	593
New Risk Written
Flow	$	461		$	439		$	900		$	565		$	552		$	480		$	335		$	1,932
Bulk		—			27			27			36			16			5			8			65
Total Primary		461			466			927			601			568			485			343			1,997
Pool		—			—			—			—			—			—			—			—
Total New Risk Written	$	461		$	466		$	927		$	601		$	568		$	485		$	343		$	1,997
Primary Insurance In-Force	$	120,900		$	123,300					$	125,900		$	129,100		$	131,900		$	134,800
Risk In-Force
Flow	$	27,489		$	27,984					$	28,498		$	29,199		$	29,836		$	30,206
Bulk		540			559						539			519			509			523
Total Primary		28,029			28,543						29,037			29,718			30,345			30,729
Pool		278			288						297			308			314			322
Total Risk In-Force	$	28,307		$	28,831					$	29,334		$	30,026		$	30,659		$	31,051
GAAP Basis Expense Ratio(1)		27	%		27	%		27	%		28	%		22	%		25	%		26	%		25	%
Adjusted Expense Ratio(2)		27	%		27	%		27	%		28	%		23	%		25	%		26	%		25	%
Flow Persistency		86	%		86	%					82	%		84	%		88	%		86	%
Gross Written Premiums Ceded To Captives/Total Direct Written Premiums		15	%		17	%					18	%		19	%		18	%		20	%
Risk To Capital Ratio(3)		N/A			25.0:1						21.9:1			17.8:1			15.1:1			14.9:1
Average Primary Loan Size (in thousands)	$	162		$	162					$	161		$	161		$	161		$	160
Primary Risk In-Force Subject To Captives		38	%		41	%					43	%		45	%		47	%		48	%
Primary Risk In-Force That Is GSE Conforming		96	%		96	%					96	%		96	%		96	%		96	%
Beginning Number of Primary Delinquencies		89,018			95,395			95,395			98,613			101,759			107,104			122,279			122,279
New delinquencies		21,272			23,866			45,138			25,771			27,180			26,034			31,126			110,111
Delinquency cures		(17,908	)		(23,908	)		(41,816	)		(21,199	)		(22,923	)		(25,868	)		(41,272	)(4)		(111,262	)
Paid claims		(4,918	)		(6,335	)		(11,253	)		(7,790	)		(7,403	)		(5,511	)		(5,029	)		(25,733	)
Ending Number of Primary Delinquencies		87,464			89,018			87,464			95,395			98,613			101,759			107,104			95,395
Primary Delinquencies by Payment Status
3 payments or less in default		21,125			20,920						25,131			26,292			26,374			28,646
4 – 11 payments in default		26,969			31,070						34,639			37,180			42,993			49,663
12 payments or more in default		39,370			37,028						35,625			35,141			32,392			28,795
Primary Delinquencies		87,464			89,018						95,395			98,613			101,759			107,104

The expense ratios included above were calculated using whole dollars and may be different than the ratios calculated using the rounded numbers included herein.

⁽¹⁾  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 deferred acquisition costs (DAC) and intangibles.

⁽²⁾  The ratio of an insurer’s general expenses to net written premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals and amortization of DAC and intangibles.

⁽³⁾  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 risk to capital ratio for the U.S. mortgage insurance business is not available for the current period due to the timing of the statutory statement filings.

⁽⁴⁾  In the first quarter of 2010, the company reached a settlement with a GSE counterparty regarding certain bulk Alt-A business. Delinquency cures included approximately 10,100 cures related to this settlement.

3

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Loss Metrics

(dollar amounts in millions)

	2011									2010
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Paid Claims
Flow	$	199		$	249		$	448		$	263		$	224		$	187		$	219		$	893
Bulk		3			3			6			4			19			48			209			280
Total Primary		202			252			454			267			243			235			428			1,173
Pool		1			1			2			1			—			1			—			2
Total Net Paid Claims	$	203		$	253		$	456		$	268		$	243		$	236	(6)	$	428	(8)	$	1,175
Average Paid Claim (in thousands)	$	40.8		$	39.7					$	34.2		$	32.8		$	42.6	(7)	$	84.7	(9)
Average Direct Net Paid Claim (in thousands)(1)	$	49.7		$	50.8					$	51.1		$	51.2		$	49.3		$	49.6
Number of Primary Delinquencies
Flow		84,442			85,758						92,225			95,567			98,771			102,389
Bulk loans with established reserve		1,569			1,814						1,713			1,607			1,510			2,155
Bulk loans with no reserve(2)		1,453			1,446						1,457			1,439			1,478			2,560
Average Reserve Per Delinquency (in thousands)
Flow	$	29.2		$	25.4					$	24.3		$	20.4		$	19.5		$	19.2
Bulk loans with established reserve		23.7			19.9						20.6			15.7			12.8			21.7
Bulk loans with no reserve(2)		—			—						—			—			—			—
Beginning Reserves	$	2,220		$	2,282		$	2,282		$	1,973		$	1,952		$	2,016		$	2,289		$	2,289
Paid claims		(286	)		(362	)		(648	)		(438	)		(439	)		(335	)(6)		(503	)(8)		(1,715	)
Increase in reserves		572			300			872			747			460			271	(6)		230	(8)		1,708
Ending Reserves	$	2,506		$	2,220		$	2,506		$	2,282		$	1,973		$	1,952		$	2,016		$	2,282
Beginning Reinsurance Recoverable(3)	$	264		$	351		$	351		$	463		$	591		$	634		$	674		$	674
Ceded paid claims		(83	)		(109	)		(192	)		(170	)		(196	)		(99	)		(75	)		(540	)
Increase in recoverable		45			22			67			58			68			56			35			217
Ending Reinsurance Recoverable	$	226		$	264		$	226		$	351		$	463		$	591		$	634		$	351
Loss Ratio(4)		369	%		197	%		283	%		457	%		263	%		141	%		138	%		251	%
Estimated Savings For Loss Mitigation Activities(5)	$	130		$	122		$	252		$	126		$	158		$	217		$	233		$	734

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⁾  Average direct net paid claim excludes the impact of reinsurance and negotiated servicer and GSE settlements.

⁽²⁾  Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes currently have no risk for claim.

⁽³⁾  Reinsurance recoverable excludes ceded unearned premium recoveries and amounts for which cash proceeds have not yet been received.

⁽⁴⁾  The ratio of incurred losses and loss adjustment expense to net earned premiums. Excluding the GSE Alt-A business settlements in the first and second quarters of 2010, the loss ratio was 253% for the twelve months ended December 31, 2010 and 144% and 141% for the three months ended June 30, 2010 and March 31, 2010, respectively.

⁽⁵⁾  Loss mitigation activities include rescissions, cancellations, borrower loan modifications, repayment plans, lender- and borrower-titled pre-sales, claims curtailment and other loan workouts and claim mitigation actions. Estimated savings for rescissions represent the reduction in carried loss reserves, net of premium refunds and reinstatement of prior rescissions. Estimated savings for loan modifications and other cure related loss mitigation actions represent the reduction in carried loss reserves. For non-cure related actions, including pre-sales, the estimated savings represent the difference between the full claim obligation and the actual amount paid.

⁽⁶⁾  Net paid claims and change in reserves include the impact of settlements that the company reached during the second quarter of 2010 with a GSE counterparty regarding certain bulk Alt-A business and with a servicer regarding rescissions.

⁽⁷⁾  Excluding the GSE Alt-A business and the servicer settlements in the second quarter of 2010, the average paid claim was approximately $45,800 in the second quarter of 2010.

⁽⁸⁾  In the first quarter of 2010, the company reached a settlement with a GSE counterparty regarding certain bulk Alt-A business. Net paid claims included $180 million and the change in reserves included a decrease of $185 million related to this settlement.

⁽⁹⁾  Excluding the GSE Alt-A business settlement in the first quarter of 2010, the average paid claim was approximately $49,100 in the first quarter of 2010.

4

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Portfolio Quality Metrics

	2011						2010
	2Q			1Q			4Q			3Q			2Q			1Q
Risk In-Force by Credit Quality(1)
Primary by FICO Scores >679		67	%		66	%		66	%		65	%		65	%		64	%
Primary by FICO Scores 620-679		26	%		27	%		27	%		27	%		27	%		28	%
Primary by FICO Scores 575-619		5	%		5	%		5	%		6	%		6	%		6	%
Primary by FICO Scores <575		2	%		2	%		2	%		2	%		2	%		2	%
Flow by FICO Scores >679		66	%		66	%		66	%		65	%		65	%		64	%
Flow by FICO Scores 620-679		27	%		27	%		27	%		27	%		27	%		28	%
Flow by FICO Scores 575-619		5	%		5	%		5	%		6	%		6	%		6	%
Flow by FICO Scores <575		2	%		2	%		2	%		2	%		2	%		2	%
Bulk by FICO Scores >679		89	%		89	%		89	%		88	%		88	%		87	%
Bulk by FICO Scores 620-679		9	%		9	%		9	%		10	%		10	%		11	%
Bulk by FICO Scores 575-619		1	%		1	%		1	%		1	%		1	%		1	%
Bulk by FICO Scores <575		1	%		1	%		1	%		1	%		1	%		1	%
Primary A minus		5	%		5	%		5	%		5	%		5	%		5	%
Primary Sub-prime(2)		5	%		5	%		5	%		5	%		5	%		5	%
Primary Loans
Primary loans in-force		746,740			763,439			781,024			802,090			821,617			840,618
Primary delinquent loans		87,464			89,018			95,395			98,613			101,759			107,104
Primary delinquency rate		11.71	%		11.66	%		12.21	%		12.29	%		12.39	%		12.74	%
Flow loans in-force		658,251			673,276			687,964			705,754			723,301			735,564
Flow delinquent loans		84,442			85,758			92,225			95,567			98,771			102,389
Flow delinquency rate		12.83	%		12.74	%		13.41	%		13.54	%		13.66	%		13.92	%
Bulk loans in-force		88,489			90,163			93,060			96,336			98,316			105,054
Bulk delinquent loans		3,022			3,260			3,170			3,046			2,988			4,715
Bulk delinquency rate		3.42	%		3.62	%		3.41	%		3.16	%		3.04	%		4.49	%
A minus and sub-prime loans in-force		73,211			75,421			77,822			80,774			83,859			86,185
A minus and sub-prime delinquent loans		20,284			20,656			22,827			23,882			24,867			26,387
A minus and sub-prime delinquency rate		27.71	%		27.39	%		29.33	%		29.57	%		29.65	%		30.62	%
Pool Loans
Pool loans in-force		16,943			17,421			17,880			18,759			19,473			19,907
Pool delinquent loans		931			913			989			939			831			783
Pool delinquency rate		5.49	%		5.24	%		5.53	%		5.01	%		4.27	%		3.93	%

⁽¹⁾  Loans with unknown FICO scores are included in the 620-679 category.

⁽²⁾  Excludes loans classified as A minus.

5

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Portfolio Quality Metrics

	June 30, 2011									March 31, 2011									June 30, 2010
	% of  Total Reserves(1)			% of Primary Risk In-Force			Primary Delinquency Rate			% of  Total Reserves(1)			% of Primary Risk In-Force			Primary Delinquency Rate			% of  Total Reserves(1)			% of Primary Risk In-Force			Primary Delinquency Rate
By Region
Southeast(2)		35	%		22	%		16.37	%		34	%		22	%		16.26	%		31	%		23	%		17.06	%
South Central(3)		12			16			9.90	%		13			16			10.01	%		15			16			11.41	%
Northeast(4)		12			14			11.71	%		11			14			11.44	%		10			14			10.85	%
North Central(5)		11			12			11.36	%		12			12			11.06	%		12			11			11.50	%
Pacific(6)		13			11			13.29	%		14			11			13.64	%		15			11			15.83	%
Great Lakes(7)		7			9			8.49	%		7			9			8.44	%		7			9			9.08	%
Plains(8)		3			6			7.75	%		3			6			7.73	%		3			6			7.59	%
New England(9)		3			5			10.36	%		3			5			10.43	%		3			5			11.11	%
Mid-Atlantic(10)		4			5			10.12	%		3			5			10.09	%		4			5			11.23	%
Total		100	%		100	%		11.71	%		100	%		100	%		11.66	%		100	%		100	%		12.39	%
By State
Florida		24	%		7	%		28.35	%		23	%		7	%		28.09	%		20	%		8	%		28.86	%
Texas		3	%		7	%		7.61	%		3	%		7	%		7.63	%		3	%		7	%		8.80	%
New York		5	%		7	%		9.71	%		4	%		7	%		9.59	%		4	%		6	%		8.88	%
California		7	%		5	%		12.24	%		7	%		5	%		12.89	%		8	%		5	%		16.40	%
Illinois		7	%		5	%		15.90	%		8	%		5	%		15.44	%		7	%		5	%		15.79	%
Georgia		4	%		4	%		14.70	%		4	%		4	%		15.12	%		4	%		4	%		17.13	%
North Carolina		3	%		4	%		10.93	%		2	%		4	%		10.73	%		2	%		4	%		11.12	%
New Jersey		5	%		4	%		17.73	%		4	%		4	%		17.53	%		4	%		4	%		16.36	%
Pennsylvania		2	%		4	%		10.81	%		2	%		4	%		10.32	%		2	%		4	%		10.34	%
Ohio		2	%		3	%		8.00	%		2	%		3	%		7.97	%		2	%		3	%		7.85	%

⁽¹⁾  Total reserves were $2,506 million, $2,220 million and $1,952 million as of June 30, 2011, March 31, 2011 and June 30, 2010, respectively.

⁽²⁾  Alabama, Arkansas, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee

⁽³⁾  Arizona, Colorado, Louisiana, New Mexico, Oklahoma, Texas and Utah

⁽⁴⁾  New Jersey, New York and Pennsylvania

⁽⁵⁾  Illinois, Minnesota, Missouri and Wisconsin

⁽⁶⁾  Alaska, California, Hawaii, Nevada, Oregon and Washington

⁽⁷⁾  Indiana, Kentucky, Michigan and Ohio

⁽⁸⁾  Idaho, Iowa, Kansas, Montana, Nebraska, North Dakota, South Dakota and Wyoming

⁽⁹⁾  Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont

⁽¹⁰⁾  Delaware, Maryland, Virginia, Washington D.C. and West Virginia

6

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Portfolio Quality Metrics

(amounts in millions)

Primary Risk In-Force:	June 30, 2011		% of Total			March 31, 2011		% of Total			June 30, 2010		% of Total
Lender concentration (by original applicant)	$	28,029				$	28,543				$	30,345
Top 10 lenders		14,000					14,322					15,098
Top 20 lenders		15,982					16,366					17,528
Loan-to-value ratio
95.01% and above	$	7,065		25	%	$	7,181		25	%	$	7,633		25	%
90.01% to 95.00%		9,740		35			9,875		35			10,491		35
80.01% to 90.00%		10,747		38			10,992		38			11,775		39
80.00% and below		477		2			495		2			446		1
Total	$	28,029		100	%	$	28,543		100	%	$	30,345		100	%
Loan grade
Prime	$	25,296		90	%	$	25,730		90	%	$	27,220		90	%
A minus and sub-prime		2,733		10			2,813		10			3,125		10
Total	$	28,029		100	%	$	28,543		100	%	$	30,345		100	%
Loan type(1)
First mortgages
Fixed rate mortgage
Flow	$	26,914		96	%	$	27,384		96	%	$	29,152		96	%
Bulk		519		2			538		2			486		2
Adjustable rate mortgage
Flow		575		2			600		2			684		2
Bulk		21		—			21		—			23		—
Second mortgages		—		—			—		—			—		—
Total	$	28,029		100	%	$	28,543		100	%	$	30,345		100	%
Type of documentation
Alt-A
Flow	$	807		3	%	$	837		3	%	$	958		3	%
Bulk		39		—			40		—			43		—
Standard(2)
Flow		26,682		95			27,147		95			28,878		95
Bulk		501		2			519		2			466		2
Total	$	28,029		100	%	$	28,543		100	%	$	30,345		100	%
Mortgage term
15 years and under	$	462		2	%	$	459		2	%	$	369		1	%
More than 15 years		27,567		98			28,084		98			29,976		99
Total	$	28,029		100	%	$	28,543		100	%	$	30,345		100	%

⁽¹⁾  For loan type in this table, any loan with an interest rate that is fixed for an initial term of five years or more is categorized as a fixed rate mortgage.

⁽²⁾  Standard includes loans with reduced or different documentation requirements that meet specifications of GSE approved underwriting systems with historical and expected delinquency rates consistent with historical and expected delinquency rates consistent with the company’s standard portfolio.

7

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Portfolio Quality Metrics

(dollar amounts in millions)

	June 30, 2011
Policy Year	Average Rate(1)			% of Total Reserves(2)			Primary Insurance In-Force		% of Total			Primary Risk In-Force		% of Total
2000 and prior		7.84	%		1.3	%	$	1,876		1.6	%	$	481		1.7	%
2001		7.58	%		0.7			954		0.8			240		0.9
2002		6.64	%		1.5			2,358		2.0			581		2.1
2003		5.65	%		3.7			9,603		7.9			1,622		5.8
2004		5.88	%		4.2			5,963		4.9			1,354		4.8
2005		5.98	%		12.6			9,710		8.0			2,501		8.9
2006		6.49	%		19.7			13,144		10.9			3,216		11.5
2007		6.56	%		40.0			29,077		24.0			7,171		25.6
2008		6.15	%		15.8			26,922		22.3			6,685		23.8
2009		5.08	%		0.3			7,982		6.6			1,386		4.9
2010		4.66	%		0.2			9,085		7.5			1,872		6.7
2011		4.63	%		—			4,264		3.5			920		3.3
Total		6.08	%		100.0	%	$	120,938		100.0	%	$	28,029		100.0	%
	June 30, 2011
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies			Direct Case Reserves(3)			Risk In-Force		Reserves as % of Risk In-Force
3 payments or less in default		20,255		$	193		$	810		24	%
4 - 11 payments in default		26,099			714			1,186		60	%
12 payments or more in default		38,088			1,349			1,901		71	%
Total		84,442		$	2,256		$	3,897		58	%
	December 31, 2010
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies			Direct Case Reserves(3)			Risk In-Force		Reserves as % of Risk In-Force
3 payments or less in default		24,104		$	152		$	959		16	%
4 - 11 payments in default		33,635			754			1,546		49	%
12 payments or more in default		34,486			1,142			1,757		65	%
Total		92,225		$	2,048		$	4,262		48	%
Occupancy and Property Type	June 30, 2011			March 31, 2011
Occupancy Status % of Primary Risk In-Force
Primary residence		93.8	%		93.7	%
Second home		3.9			3.9
Non-owner occupied		2.3			2.4
Total		100.0	%		100.0	%
Property Type % of Primary Risk In-Force
Single family detached		85.8	%		85.8	%
Condominium and co-operative		11.4			11.3
Multi-family and other		2.8			2.9
Total		100.0	%		100.0	%

⁽¹⁾  Average Annual Mortgage Interest Rate

⁽²⁾  Total reserves were $2,506 million as of June 30, 2011.

⁽³⁾  Direct flow case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.

8

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Portfolio Quality Metrics

(amounts in billions)

	FICO > 679						FICO 620 - 679(1)						FICO < 620						Total
	2011						2011						2011						2011
Primary Risk In-Force	2Q			1Q			2Q			1Q			2Q			1Q			2Q			1Q
Total Primary Risk In-Force	$	18.7		$	18.9		$	7.3		$	7.6		$	2.0		$	2.0		$	28.0		$	28.5
Delinquency rate(2)		7.4	%		7.4	%		18.7	%		18.5	%		28.1	%		27.8	%		11.7	%		11.7	%
2011 policy year	$	0.8		$	0.5		$	0.1		$	—		$	—		$	—		$	0.9		$	0.5
Delinquency rate		—	%		—	%		0.1	%		—	%		2.8	%		—	%		—	%		—	%
2010 policy year	$	1.8		$	1.8		$	0.1		$	0.1		$	—		$	—		$	1.9		$	1.9
Delinquency rate		0.1	%		0.1	%		0.4	%		0.3	%		2.8	%		1.8	%		0.1	%		0.1	%
2009 policy year	$	1.3		$	1.3		$	0.1		$	0.1		$	—		$	—		$	1.4		$	1.4
Delinquency rate		0.5	%		0.4	%		1.8	%		1.8	%		6.6	%		5.6	%		0.5	%		0.5	%
2008 policy year	$	5.1		$	5.2		$	1.3		$	1.4		$	0.3		$	0.3		$	6.7		$	6.9
Delinquency rate		6.5	%		6.3	%		14.9	%		14.7	%		24.9	%		24.7	%		8.9	%		8.7	%
2007 policy year	$	4.0		$	4.2		$	2.3		$	2.4		$	0.8		$	0.8		$	7.1		$	7.4
Delinquency rate		12.8	%		12.6	%		22.7	%		22.6	%		32.7	%		32.5	%		18.3	%		18.2	%
2006 policy year	$	1.8		$	1.9		$	1.1		$	1.1		$	0.3		$	0.3		$	3.2		$	3.3
Delinquency rate		13.9	%		13.6	%		22.5	%		22.4	%		29.0	%		28.8	%		18.3	%		18.0	%
2005 and prior policy year	$	3.9		$	4.0		$	2.3		$	2.5		$	0.6		$	0.6		$	6.8		$	7.1
Delinquency rate		7.8	%		7.5	%		17.4	%		16.9	%		23.9	%		23.5	%		11.9	%		11.6	%
Fixed rate mortgage	$	18.4		$	18.6		$	7.1		$	7.4		$	1.9		$	1.9		$	27.4		$	27.9
Delinquency rate		7.1	%		7.1	%		18.5	%		18.3	%		27.9	%		27.6	%		11.4	%		11.4	%
Adjustable rate mortgage	$	0.3		$	0.3		$	0.2		$	0.2		$	0.1		$	0.1		$	0.6		$	0.6
Delinquency rate		25.0	%		24.8	%		28.1	%		27.4	%		36.3	%		36.1	%		27.1	%		26.7	%
Loan-to-value > 95%	$	3.8		$	3.8		$	2.5		$	2.6		$	0.8		$	0.8		$	7.1		$	7.2
Delinquency rate		9.4	%		9.3	%		20.8	%		20.7	%		31.4	%		31.3	%		16.2	%		16.1	%
Alt-A(3)	$	0.6		$	0.6		$	0.2		$	0.3		$	—		$	—		$	0.8		$	0.9
Delinquency rate		18.7	%		18.8	%		32.9	%		32.7	%		33.3	%		34.7	%		23.0	%		23.0	%
Interest only and option ARMs	$	1.4		$	1.4		$	0.5		$	0.5		$	0.1		$	0.1		$	2.0		$	2.0
Delinquency rate		26.9	%		26.9	%		37.2	%		37.3	%		43.5	%		42.7	%		30.3	%		30.3	%

⁽¹⁾  Loans with unknown FICO scores are included in the 620-679 category.

⁽²⁾  Delinquency rate represents the number of lender reported delinquencies divided by the number of remaining policies consistent with mortgage insurance practices.

⁽³⁾  Alt-A consists of loans with reduced documentation or verification of income or assets and a higher historical and expected delinquency rate than standard documentation loans.

9

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Other Metrics—Bulk Risk In-Force

(dollar amounts in millions)

	June 30, 2011			March 31, 2011			June 30, 2010
GSE Alt-A
Risk in-force	$	27		$	27		$	29
Average FICO score		732			732			732
Loan-to-value ratio		81	%		81	%		81	%
Standard documentation(1)		11	%		11	%		11	%
Stop loss		100	%		100	%		100	%
Deductible		—	%		—	%		—	%
FHLB
Risk in-force	$	442		$	459		$	399
Average FICO score		757			757			755
Loan-to-value ratio		75	%		75	%		75	%
Standard documentation(1)		97	%		97	%		97	%
Stop loss		94	%		94	%		91	%
Deductible		100	%		100	%		100	%
Other
Risk in-force	$	71		$	73		$	81
Average FICO score		692			692			692
Loan-to-value ratio		92	%		92	%		92	%
Standard documentation(1)		97	%		97	%		97	%
Stop loss		8	%		8	%		9	%
Deductible		—	%		—	%		—	%
Total Bulk Risk In-Force	$	540		$	559		$	509

⁽¹⁾  Standard documentation includes loans with reduced or different documentation requirements that meet specifications of GSE approved underwriting systems with historical and expected delinquency rates consistent with the standard portfolio.

10

GENWORTH FINANCIAL, INC.

PRELIMINARY STATISTICAL SUPPLEMENT—U.S. MORTGAGE INSURANCE

SECOND QUARTER 2011

Aggregate Book Year Analysis Provided to Illustrate Directional Progression Toward Captive Attachment⁽¹⁾

				June 30, 2011						March 31, 2011
Book Year(2)	Original Book Risk In-Force ($B)(3)		Progression To Attachment Point	Current Risk In-Force ($B)		Ever-To-Date Incurred Losses ($MM)(3)		Captive Benefits ($MM)		Current Risk In-Force ($B)		Ever-To-Date Incurred Losses ($MM)(3)		Captive Benefits ($MM)
2004			0%-50%	$	—	$	2			$	—	$	4
2004			50%-75%		0.1		10				0.2		29
2004			75%-99%		0.3		52				0.2		31
2004			Attached		0.3		71				0.3		44
2004 Total	$	3.1		$	0.7	$	135	$	13	$	0.7	$	108	$	2
2005			0%-50%	$	—	$	1			$	—	$	1
2005			50%-75%		—		—				—		—
2005			75%-99%		—		—				—		1
2005			Attached		1.0		296				1.5		451
2005 Total	$	2.5		$	1.0	$	297		1	$	1.5	$	453		2
2006			0%-50%	$	—	$	1			$	—	$	1
2006			50%-75%		—		—				—		—
2006			75%-99%		—		1				—		—
2006			Attached		1.0		384				1.6		640
2006 Total	$	2.2		$	1.0	$	386		10	$	1.6	$	641		9
2007			0%-50%	$	—	$	1			$	—	$	1
2007			50%-75%		—		—				—		—
2007			75%-99%		—		—				—		1
2007			Attached		1.9		683				3.4		1,133
2007 Total	$	3.2		$	1.9	$	684		2	$	3.4	$	1,135		4
2008			0%-50%	$	0.1	$	1			$	0.3	$	8
2008			50%-75%		0.2		12				0.2		8
2008			75%-99%		0.1		5				0.1		4
2008			Attached		0.8		156				1.3		161
2008 Total	$	1.8		$	1.2	$	174		19	$	1.9	$	181		4
Captive Benefits In Quarter ($MM)								$	45					$	21

⁽¹⁾  Data presented in aggregate for all trusts. Actual trust attachment and exit points will vary by individual lender contract. For purposes of this illustration, ever-to-date incurred losses equal current reserves plus ever-to-date paid claims. The information presented excludes quota share captive reinsurance data. Progress toward captive attachment is determined at a lender level for each book year by dividing ever-to-date incurred losses by original risk in-force for that book year.

⁽²⁾  Book year amounts may include loans from additional periods pursuant to reinsurance agreement terms and conditions.

⁽³⁾  Original book risk in-force and ever-to-date incurred losses include amounts for active captive books only.

11