See Notes to Schedule II

See Report of Independent Registered Public Accounting Firm

Schedule II

Genworth Financial, Inc.

(Parent Company Only)

Statements of Income

(Amounts in millions)


	Years ended December 31,
	2021			2020			2019
Revenues:
Net investment income	$	(3	)	$	(3	)	$	(3	)

Total revenues		(3	)		(3	)		(3	)

Expenses:
Acquisition and operating expenses, net of deferrals		25			31			20
Interest expense		(1	)		1			3

Total expenses		24			32			23

Loss before income taxes and equity in income of subsidiaries		(27	)		(35	)		(26	)
Benefit from income taxes		(1	)		(2	)		(3	)
Equity in income of subsidiaries		930			210			366

Income from continuing operations		904			177			343
Income from discontinued operations, net of taxes		—			1			—

Net income available to Genworth Financial, Inc.’s common stockholders	$	904		$	178		$	343

See Notes to Schedule II

See Report of Independent Registered Public Accounting Firm

Schedule II

Genworth Financial, Inc.

(Parent Company Only)

Statements of Comprehensive Income

(Amounts in millions)


	Years ended December 31,
	2021			2020			2019
Net income available to Genworth Financial, Inc.’s common stockholders	$	904		$	178		$	343
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities without an allowance for credit losses		(334	)		764			—
Net unrealized gains (losses) on securities with an allowance for credit losses		6			(6	)		—
Net unrealized gains (losses) on securities not other-than-temporarily impaired		—			—			859
Net unrealized gains (losses) on other-than-temporarily impaired securities		—			—			2
Derivatives qualifying as hedges		(186	)		209			221
Foreign currency translation and other adjustments		(24	)		25			307

Total other comprehensive income (loss)		(538	)		992			1,389

Total comprehensive income available to Genworth Financial, Inc.’s common stockholders	$	366		$	1,170		$	1,732

See Notes to Schedule II

See Report of Independent Registered Public Accounting Firm

Schedule II

Genworth Financial, Inc.

(Parent Company Only)

Statements of Cash Flows

(Amounts in millions)


	Years ended December 31,
	2021			2020			2019
Cash flows from (used by) operating activities:
Net income available to Genworth Financial, Inc.’s common stockholders	$	904		$	178		$	343
Less income from discontinued operations, net of taxes		—			(1	)		—
Adjustments to reconcile net income available to Genworth Financial, Inc.’s common stockholders to net cash from (used by) operating activities:
Equity in income from subsidiaries		(930	)		(210	)		(366	)
Dividends from subsidiaries		—			—			250
Deferred income taxes		—			(1	)		1
Stock-based compensation expense		40			39			26
Change in certain assets and liabilities:
Accrued investment income and other assets		(1	)		2			—
Current tax liabilities		(5	)		(1	)		16
Other liabilities and other policy-related balances		(13	)		11			(17	)

Net cash from (used by) operating activities		(5	)		17			253

Cash flows used by investing activities:
Intercompany notes receivable, net		—			(10	)		(119	)
Capital contributions paid to subsidiaries		(2	)		(2	)		(5	)

Net cash used by investing activities		(2	)		(12	)		(124	)

Cash flows from (used by) financing activities:
Intercompany notes payable, net		12			—			(122	)
Other, net		(5	)		(5	)		(7	)

Net cash from (used by) financing activities		7			(5	)		(129	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash		—			—			—

Cash, cash equivalents and restricted cash at beginning of year		—			—			—

Cash, cash equivalents and restricted cash at end of year	$	—		$	—		$	—

See Notes to Schedule II

See Report of Independent Registered Public Accounting Firm

Schedule II

Genworth Financial, Inc.

(Parent Company Only)

Notes to Schedule II

Years Ended December 31, 2021, 2020 and 2019

(1) Organization and Purpose

Genworth Holdings (formerly known as Genworth Financial, Inc.) was incorporated in Delaware in 2003 in preparation for an IPO of its common stock, which was completed on May 28, 2004. On April 1, 2013, Genworth Holdings completed a holding company reorganization pursuant to which Genworth Holdings became a direct, 100% owned subsidiary of a new public holding company that it had formed. The new public holding company was incorporated in Delaware on December 5, 2012, in connection with the reorganization, and was renamed Genworth Financial upon the completion of the reorganization.

Genworth Financial is a holding company whose subsidiaries offer mortgage and long-term care insurance products and service life insurance, as well as annuities and other investment products.

(2) Accounting Changes

On January 1, 2021, Genworth Financial adopted new accounting guidance related to simplifying the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. Genworth Financial adopted this new accounting guidance using the retrospective method or modified retrospective method for certain changes and prospective method for all other changes, which did not have a significant impact on Genworth Financial’s financial statements and disclosures.

(3) Commitments

Genworth Financial provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding senior and subordinated notes and the holders of the senior and subordinated notes, on an unsecured unsubordinated and subordinated basis, respectively, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, each outstanding series of senior notes and outstanding subordinated notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the senior and subordinated notes indentures in respect of such senior and subordinated notes. Genworth Financial and Genworth Holdings have joint and several guarantees associated with the Tax Matters Agreement.

(4) Income Taxes

As of December 31, 2021 and 2020, Genworth Financial had a deferred tax asset of $4 million and $13 million, respectively, primarily comprised of share-based compensation. Genworth Financial had a current income tax receivable of $2 million as of December 31, 2021 and a current income tax payable of $3 million as of December 31, 2020. Net cash received (paid) for taxes was $(4) million, $— and $21 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(5) Supplemental Cash Flow Information

In 2020, Genworth Financial forgave an intercompany loan of $129 million due from Genworth Holdings. The extinguishment of the loan between the related parties was treated as a

non-cash

capital contribution to Genworth Holdings and accordingly had no impact on Genworth Financial’s cash flows for the year ended December 31, 2020.

Schedule II

Genworth Financial, Inc.

(Parent Company Only)

Notes to Schedule II

Years Ended December 31, 2021, 2020 and 2019

(6) Sale of Business

On December 1, 2015, Genworth Financial completed the sale of its lifestyle protection insurance business to AXA through its subsidiaries. In 2017, AXA sued GFIH, Genworth Financial’s wholly-owned indirect subsidiary, and Genworth Holdings for damages on an indemnity in the 2015 agreement related to alleged remediation it paid to customers who purchased PPI. On July 20, 2020, Genworth Holdings reached a settlement agreement related to losses incurred from

mis-selling

complaints on policies sold from 1970 through 2004 and agreed to make payments for certain PPI

mis-selling

claims, along with a significant portion of future claims that are still being processed. Under the settlement agreement, Genworth Holdings issued a secured promissory note to AXA and agreed to make deferred cash payments in two installments in 2022. The promissory note and associated loss from discontinued operations of $549 million reflected in Genworth Financial’s consolidated statement of income for the year ended December 31, 2020 related primarily to Genworth Holdings as it was the entity named as the primary defendant in the lawsuit and the obligor in the settlement agreement. Accordingly, the associated amounts reported as discontinued operations are included within equity in income of subsidiaries in the parent company statement of income for the year ended December 31, 2020.

In addition, Genworth Financial completed the sale of Genworth Australia and Genworth Canada on March 3, 2021 and December 12, 2019, respectively, through its subsidiaries. Income from discontinued operations related to the sale of these businesses is also included within equity in income of subsidiaries in the parent company statement of income for the periods presented herein.

Income from discontinued operations presented in the parent company statement of income for the year ended December 31, 2020 relates to tax adjustments incurred by Genworth Financial related to previously disposed businesses.