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

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)

EX-99.1

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.

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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.

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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.

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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,

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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.

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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.

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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.

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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.

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• 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 17^th 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.

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Use of Non-GAAP Measures

This press release includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) 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

EX-99.2

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.

42

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.

43

Corporate Information

44

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.

45

XML

Document and Entity Information	Feb. 16, 2021
Cover [Abstract]
Entity Registrant Name	GENWORTH FINANCIAL INC
Amendment Flag	false
Entity Central Index Key	0001276520
Document Type	8-K
Document Period End Date	Feb. 16, 2021
Entity Incorporation State Country Code	DE
Entity File Number	001-32195
Entity Tax Identification Number	80-0873306
Entity Address, Address Line One	6620 West Broad Street
Entity Address, City or Town	Richmond
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23230
City Area Code	(804)
Local Phone Number	281-6000
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Class A Common Stock, par value $.001 per share
Trading Symbol	GNW
Security Exchange Name	NYSE
Entity Emerging Growth Company	false