EX-99.2

Company

Financial Assurance Company Limited

Financial Insurance Company Limited

EX-99.2 3 d762575dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

Second Quarter Financial Supplement

June 30, 2014

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014


Table of Contents	Page
Investor Letter		3
Use of Non-GAAP Measures and Selected Operating Performance Measures		4-5
Financial Highlights		6

*Second Quarter Results*
Consolidated Net Income by Quarter		8
Net Operating Income by Segment by Quarter		9
Consolidated Balance Sheets		10-11
Consolidated Balance Sheets by Segment		12-13
Deferred Acquisition Costs Rollforward		14

*Quarterly Results*
Net Operating Income and Sales—U.S. Life Insurance Division		16-24
Net Operating Income and Sales—Global Mortgage Insurance Division		26-50
Net Operating Income (Loss) and Sales—Corporate and Other Division		52-63

*Additional Financial Data*
Investments Summary		65
Fixed Maturity Securities Summary		66
Commercial Mortgage Loans Summary		67-68
General Account GAAP Net Investment Income Yields		69
Net Investment Gains (Losses), Net of Taxes and Other Adjustments—Detail		70

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		72
Reconciliation of Core Yield		73

*Corporate Information*
Industry Ratings		75-76

Note:

Unless otherwise noted, 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, book value and book value per common 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, book value available to Genworth Financial, Inc.’s common stockholders and book value available to Genworth Financial, Inc.’s common stockholders per share, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Dear Investor,

On May 21, 2014, the company completed the minority initial public offering of 33.8% of its Australian mortgage insurance business and as a result net income attributable to noncontrolling interests in the Australian mortgage insurance business was $11 million in the second quarter of 2014.

We have added metrics related to flow new insurance written for the U.S. mortgage insurance business on page 43.

Once again, thank you for your continued interest in Genworth Financial.

Please feel free to call with any questions or comments.

Regards,

Amy Corbin

Investor Relations

804 662.2685

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Use of Non-GAAP Measures

This financial supplement includes the non-GAAP⁽¹⁾ financial measure entitled “net operating income (loss).” The chief operating decision maker evaluates segment performance and allocates resources on the basis of net operating income (loss). The company defines net operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income 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 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 impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt and gains (losses) on insurance block transactions are also excluded from net operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Other non-operating items are also excluded from net operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.

The following transactions were excluded from net operating income (loss) for the periods presented as they related to the loss on the early extinguishment of debt. In the second quarter of 2014, the company paid an early redemption payment of approximately $2 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth MI Canada Inc.’s notes that were scheduled to mature in 2015. In the third quarter of 2013, the company paid a make-whole expense of approximately $20 million, net of taxes, related to the early redemption of Genworth Holdings’ notes that were scheduled to mature in 2015.

There were no infrequent or unusual items excluded from net operating income (loss) during the periods presented other than a $13 million, net of taxes, expense recorded in the second quarter of 2013 related to restructuring costs.

While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with GAAP, the company believes that net operating income (loss) and measures that are derived from or incorporate net operating income (loss), including net operating income (loss) per common share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses net 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 net operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Net operating income (loss) and net operating income (loss) per common share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth Financial, Inc.’s common stockholders or net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share on a basic and diluted basis determined in accordance with GAAP. In addition, the company’s definition of net operating income (loss) may differ from the definitions used by other companies.

The table on page 9 of this financial supplement reflects net operating income (loss) as determined in accordance with accounting guidance related to segment reporting, and a reconciliation of net operating income (loss) of the company’s segments and Corporate and Other activities to net income (loss) available to Genworth Financial, Inc.’s common stockholders for the periods presented. The 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 72 and 73 of this financial supplement.

Adjustments to reconcile net income attributable to Genworth Financial, Inc.’s common stockholders and net operating income assume a 35% tax rate 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 70).

⁽¹⁾	U.S. Generally Accepted Accounting Principles

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Operating Performance Measures

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 and renewal business generated in a period. Sales refer to: (1) annualized first-year premiums for term life and long-term care insurance products; (2) annualized first-year deposits plus 5% of excess deposits for universal and term universal life insurance products; (3) 10% of premium deposits for linked-benefits products; (4) new and additional premiums/deposits for fixed annuities; (5) new insurance written for mortgage insurance; and (6) net premiums written for the lifestyle protection insurance business. Sales do not include renewal premiums on policies or contracts written during prior periods. The company considers annualized first-year premiums/ deposits, premium equivalents, new premiums/deposits, new insurance written and net premiums written to be a measure of the company’s operating performance because they represent a measure of new sales of insurance policies or contracts 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 life, international mortgage and U.S. mortgage insurance businesses is a measure of the aggregate face value of outstanding insurance policies as of the respective reporting date. For the risk in-force in the international mortgage insurance business, the company 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 of 35% that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s businesses in Canada and Australia. Risk in-force for the U.S. mortgage insurance business is the obligation that is limited under contractual terms to the amounts less than 100% of the mortgage loan value. The company considers insurance in-force and risk in-force to be measures of the company’s operating performance because they represent measures of the size of the business at a specific date which will generate revenues and profits in a future period, rather than measures of the company’s revenues or profitability during that period.

This financial supplement also includes information related to loss mitigation activities for the U.S. mortgage insurance business. The company defines loss mitigation activities as rescissions, cancellations, borrower loan modifications, repayment plans, lender- and borrower-titled pre-sales, claims administration and other loan workouts. Estimated savings related to rescissions are the reduction in carried loss reserves, net of premium refunds and reinstatement of prior rescissions. Estimated savings related to loan modifications and other cure-related loss mitigation actions represent the reduction in carried loss reserves. Estimated savings related to claims mitigation activities represent amounts deducted or “curtailed” from claims due to acts or omissions by the insured or the servicer with respect to the servicing of an insured loan that is not in compliance with obligations under our master policy. For non-cure related actions, including pre-sales, the estimated savings represent the difference between the full claim obligation and the actual amount paid. Loans subject to our loss mitigation actions, the results of which have been included in our reported estimated loss mitigation savings, are subject to re-default and may result in a potential claim in future periods, as well as potential future loss mitigation savings depending on the resolution of the re-defaulted loan. The company believes that this information helps to enhance the understanding of the operating performance of the U.S. mortgage insurance business as loss mitigation activities specifically impact current and future loss reserves and level of claim payments.

Management also regularly monitors and reports a loss ratio for the company’s businesses. 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. For the mortgage and lifestyle protection insurance businesses, the loss ratio is the ratio of incurred losses and 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.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	June 30, 2014		March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	12,070	$	12,032	$	11,851	$	11,665	$	11,547
Total accumulated other comprehensive income		4,161		3,483		2,542		2,939		3,142

Total Genworth Financial, Inc.’s stockholders’ equity	$	16,231	$	15,515	$	14,393	$	14,604	$	14,689


Book value per common share	$	32.68	$	31.27	$	29.08	$	29.55	$	29.76
Book value per common share, excluding accumulated other comprehensive income	$	24.31	$	24.25	$	23.95	$	23.60	$	23.39
Common shares outstanding as of the balance sheet date		496.6		496.2		494.8		494.2		493.6

	Twelve months ended
Twelve Month Rolling Average ROE	June 30, 2014		March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013

GAAP Basis ROE		5.7%		5.5%		4.8%		4.6%		4.0%
Operating ROE⁽¹⁾		5.8%		5.6%		5.3%		5.1%		5.0%

	Three months ended
Quarterly Average ROE	June 30, 2014		March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013
GAAP Basis ROE		5.8%		6.2%		7.1%		3.7%		4.9%
Operating ROE⁽¹⁾		5.2%		6.5%		6.6%		4.8%		4.6%


Basic and Diluted Shares	Three months ended June 30, 2014		Six months ended June 30, 2014
Weighted-average shares used in basic earnings per common share calculations		496.6		496.2
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		7.0		7.0

Weighted-average shares used in diluted earnings per common share calculations		503.6		503.2

⁽¹⁾	See page 72 herein for a reconciliation of GAAP Basis ROE to Operating ROE.

Second Quarter Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Consolidated Net Income by Quarter

(amounts in millions, except per share amounts)


	2014							2013
	2Q		1Q			Total		4Q		3Q			2Q		1Q			Total
REVENUES:
Premiums	$	1,343	$	1,307		$	2,650	$	1,310	$	1,291		$	1,286	$	1,261		$	5,148
Net investment income		813		805			1,618		835		801			821		814			3,271
Net investment gains (losses)		34		(17	)		17		26		(23	)		21		(61	)		(37	)
Insurance and investment product fees and other		225		227			452		241		248			243		289			1,021

Total revenues		2,415		2,322			4,737		2,412		2,317			2,371		2,303			9,403

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,256		1,194			2,450		1,256		1,169			1,269		1,201			4,895
Interest credited		184		183			367		186		184			184		184			738
Acquisition and operating expenses, net of deferrals		404		378			782		406		407			413		433			1,659
Amortization of deferred acquisition costs and intangibles		138		134			272		128		182			137		122			569
Interest expense		120		127			247		121		124			121		126			492

Total benefits and expenses		2,102		2,016			4,118		2,097		2,066			2,124		2,066			8,353

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		313		306			619		315		251			247		237			1,050
Provision for income taxes		85		87			172		70		105			73		76			324

INCOME FROM CONTINUING OPERATIONS		228		219			447		245		146			174		161			726
Income (loss) from discontinued operations, net of taxes⁽¹⁾		—		—			—		—		2			6		(20	)		(12	)

NET INCOME		228		219			447		245		148			180		141			714
Less: net income attributable to noncontrolling interests		52		35			87		37		40			39		38			154

NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	176	$	184		$	360	$	208	$	108		$	141	$	103		$	560


Earnings Per Share Data:

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.35	$	0.37		$	0.73	$	0.42	$	0.21		$	0.27	$	0.25		$	1.16
Diluted	$	0.35	$	0.37		$	0.72	$	0.42	$	0.21		$	0.27	$	0.25		$	1.15

Net income available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.35	$	0.37		$	0.73	$	0.42	$	0.22		$	0.29	$	0.21		$	1.13
Diluted	$	0.35	$	0.37		$	0.72	$	0.41	$	0.22		$	0.28	$	0.21		$	1.12

Weighted-average shares outstanding
Basic		496.6		495.8			496.2		494.7		494.0			493.4		492.5			493.6
Diluted		503.6		502.7			503.2		501.2		499.3			497.5		496.8			498.7

⁽¹⁾	Income (loss) from discontinued operations related to the wealth management business, which was sold on August 30, 2013.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income by Segment by Quarter

(amounts in millions, except per share amounts)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
U.S. Life Insurance Division
U.S. Life Insurance segment:
Life Insurance	$	39		$	21		$	60		$	56		$	54		$	27		$	36		$	173
Long-Term Care Insurance		6			46			52			42			41			26			20			129
Fixed Annuities		24			27			51			21			16			26			29			92

Total U.S. Life Insurance segment		69			94			163			119			111			79			85			394

Total U.S. Life Insurance Division		69			94			163			119			111			79			85			394

Global Mortgage Insurance Division
International Mortgage Insurance segment:
Canada		47			41			88			44			41			43			42			170
Australia⁽¹⁾		57			62			119			66			61			55			46			228
Other Countries		(7	)		(4	)		(11	)		(9	)		(12	)		(9	)		(7	)		(37	)

Total International Mortgage Insurance segment		97			99			196			101			90			89			81			361
U.S. Mortgage Insurance segment		39			33			72			6			(3	)		13			21			37

Total Global Mortgage Insurance Division		136			132			268			107			87			102			102			398

Corporate and Other Division
International Protection segment		2			7			9			13			4			1			6			24
Runoff segment		15			12			27			19			25			6			16			66
Corporate and Other		(64	)		(51	)		(115	)		(65	)		(88	)		(55	)		(58	)		(266	)

Total Corporate and Other Division		(47	)		(32	)		(79	)		(33	)		(59	)		(48	)		(36	)		(176	)

NET OPERATING INCOME		158			194			352			193			139			133			151			616
ADJUSTMENTS TO NET OPERATING INCOME:
Net investment gains (losses), net		20			(10	)		10			15			(13	)		15			(28	)		(11	)
Expenses related to restructuring, net		—			—			—			—			—			(13	)		—			(13	)
Gains (losses) on early extinguishment of debt, net		(2	)		—			(2	)		—			(20	)		—			—			(20	)
Income (loss) from discontinued operations, net of taxes		—			—			—			—			2			6			(20	)		(12	)

NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		176			184			360			208			108			141			103			560
Add: net income attributable to noncontrolling interests		52			35			87			37			40			39			38			154

NET INCOME	$	228		$	219		$	447		$	245		$	148		$	180		$	141		$	714


Earnings Per Share Data:
Net income available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.35		$	0.37		$	0.73		$	0.42		$	0.22		$	0.29		$	0.21		$	1.13
Diluted	$	0.35		$	0.37		$	0.72		$	0.41		$	0.22		$	0.28		$	0.21		$	1.12
Net operating income per common share
Basic	$	0.32		$	0.39		$	0.71		$	0.39		$	0.28		$	0.27		$	0.31		$	1.25
Diluted	$	0.31		$	0.39		$	0.70		$	0.38		$	0.28		$	0.27		$	0.30		$	1.24
Weighted-average shares outstanding
Basic		496.6			495.8			496.2			494.7			494.0			493.4			492.5			493.6
Diluted		503.6			502.7			503.2			501.2			499.3			497.5			496.8			498.7

⁽¹⁾

Adjusted for 33.8% owned by noncontrolling interests after the initial public offering of the Australian mortgage insurance business on May 21, 2014. The following table shows Australia’s net operating income assuming 100% ownership and then adjusts for the portion related to noncontrolling interests.


	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Australia’s Net Operating Income	$	68	$	55	$	130	$	101
Less: Net Operating Income Attributable to Noncontrolling Interests		11		—		11		—

Australia’s Net Operating Income Available to Genworth Financial, Inc.’s Common Stockholders	$	57	$	55	$	119	$	101

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Consolidated Balance Sheets

(amounts in millions)


	June 30, 2014		March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	62,360	$	60,244	$	58,629	$	59,086	$	58,008
Equity securities available-for-sale, at fair value		320		349		341		379		411
Commercial mortgage loans		5,986		5,894		5,899		5,858		5,831
Restricted commercial mortgage loans related to securitization entities		217		227		233		290		309
Policy loans		1,514		1,438		1,434		1,668		1,671
Other invested assets		1,963		1,875		1,686		1,826		1,976
Restricted other invested assets related to securitization entities		404		398		391		392		392

Total investments		72,764		70,425		68,613		69,499		68,598
Cash and cash equivalents		4,138		4,360		4,214		3,554		3,613
Accrued investment income		642		752		678		705		639
Deferred acquisition costs		5,085		5,177		5,278		5,256		5,237
Intangible assets		266		327		399		404		433
Goodwill		867		866		867		867		867
Reinsurance recoverable		17,276		17,234		17,219		17,224		17,236
Other assets		695		691		639		668		704
Separate account assets		9,911		9,933		10,138		9,957		9,806
Assets associated with discontinued operations⁽¹⁾		—		—		—		—		443

Total assets	$	111,644	$	109,765	$	108,045	$	108,134	$	107,576

⁽¹⁾	The assets associated with discontinued operations related to the wealth management business prior to the sale on August 30, 2013.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Consolidated Balance Sheets

(amounts in millions)


	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	34,497		$	34,076		$	33,705		$	33,612		$	33,437
Policyholder account balances		25,834			25,881			25,528			25,266			24,935
Liability for policy and contract claims		7,223			7,156			7,204			7,271			7,302
Unearned premiums		4,191			4,075			4,107			4,160			4,022
Other liabilities		3,702			3,777			4,096			4,607			4,629
Borrowings related to securitization entities		233			239			242			297			317
Non-recourse funding obligations		2,024			2,030			2,038			2,046			2,054
Long-term borrowings		4,691			5,150			5,161			4,780			4,720
Deferred tax liability		1,074			714			206			293			369
Separate account liabilities		9,911			9,933			10,138			9,957			9,806
Liabilities associated with discontinued operations⁽¹⁾		—			—			—			—			83

Total liabilities		93,380			93,031			92,425			92,289			91,674

Stockholders’ equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,986			12,124			12,127			12,149			12,139

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains on securities not other-than-temporarily impaired		2,109			1,606			914			1,106			1,296
Net unrealized gains (losses) on other-than-temporarily impaired securities		19			18			12			3			(2	)

Net unrealized investment gains (losses)		2,128			1,624			926			1,109			1,294

Derivatives qualifying as hedges		1,652			1,538			1,319			1,442			1,581
Foreign currency translation and other adjustments		381			321			297			388			267

Total accumulated other comprehensive income		4,161			3,483			2,542			2,939			3,142
Retained earnings		2,783			2,607			2,423			2,215			2,107
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		16,231			15,515			14,393			14,604			14,689
Noncontrolling interests		2,033			1,219			1,227			1,241			1,213

Total stockholders’ equity		18,264			16,734			15,620			15,845			15,902

Total liabilities and stockholders’ equity	$	111,644		$	109,765		$	108,045		$	108,134		$	107,576

⁽¹⁾	The liabilities associated with discontinued operations related to the wealth management business prior to the sale on August 30, 2013.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Consolidated Balance Sheet by Segment

(amounts in millions)


	June 30, 2014
	U.S. Life Insurance		International Mortgage Insurance		U.S. Mortgage Insurance			International Protection		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	58,873	$	9,219	$	2,215		$	1,639	$	2,759		$	2,839		$	77,544
Deferred acquisition costs and intangible assets		5,389		190		23			266		331			19			6,218
Reinsurance recoverable		16,319		26		31			39		861			—			17,276
Deferred tax and other assets		335		83		53			172		(6	)		58			695
Separate account assets		—		—		—			—		9,911			—			9,911

Total assets	$	80,916	$	9,518	$	2,322		$	2,116	$	13,856		$	2,916		$	111,644

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	34,492	$	—	$	—		$	—	$	5		$	—		$	34,497
Policyholder account balances		22,667		—		—			15		3,152			—			25,834
Liability for policy and contract claims		5,463		371		1,256			117		16			—			7,223
Unearned premiums		612		2,887		143			541		8			—			4,191
Non-recourse funding obligations		2,054		—		—			—		—			(30	)		2,024
Deferred tax and other liabilities		4,510		233		(747	)		403		294			83			4,776
Borrowings and capital securities		—		540		—			—		13			4,371			4,924
Separate account liabilities		—		—		—			—		9,911			—			9,911

Total liabilities		69,798		4,031		652			1,076		13,399			4,424			93,380

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		7,547		2,971		1,650			947		479			(1,524	)		12,070
Allocated accumulated other comprehensive income (loss)		3,571		483		20			93		(22	)		16			4,161

Total Genworth Financial, Inc.’s stockholders’ equity		11,118		3,454		1,670			1,040		457			(1,508	)		16,231
Noncontrolling interests		—		2,033		—			—		—			—			2,033

Total stockholders’ equity		11,118		5,487		1,670			1,040		457			(1,508	)		18,264

Total liabilities and stockholders’ equity	$	80,916	$	9,518	$	2,322		$	2,116	$	13,856		$	2,916		$	111,644

⁽¹⁾	Includes inter-segment eliminations and non-core products.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Consolidated Balance Sheet by Segment

(amounts in millions)


	March 31, 2014
	U.S. Life Insurance		International Mortgage Insurance		U.S. Mortgage Insurance			International Protection		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	57,260	$	8,736	$	2,210		$	1,626	$	3,057		$	2,648		$	75,537
Deferred acquisition costs and intangible assets		5,529		181		20			275		343			22			6,370
Reinsurance recoverable		16,267		21		41			31		874			—			17,234
Deferred tax and other assets		331		100		34			172		9			45			691
Separate account assets		—		—		—			—		9,933			—			9,933

Total assets	$	79,387	$	9,038	$	2,305		$	2,104	$	14,216		$	2,715		$	109,765

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	34,071	$	—	$	—		$	—	$	5		$	—		$	34,076
Policyholder account balances		22,507		—		—			15		3,359			—			25,881
Liability for policy and contract claims		5,298		372		1,355			114		17			—			7,156
Unearned premiums		613		2,772		135			546		9			—			4,075
Non-recourse funding obligations		2,060		—		—			—		—			(30	)		2,030
Deferred tax and other liabilities		4,236		190		(801	)		405		393			68			4,491
Borrowings and capital securities		—		514		—			—		12			4,863			5,389
Separate account liabilities		—		—		—			—		9,933			—			9,933

Total liabilities		68,785		3,848		689			1,080		13,728			4,901			93,031

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		7,624		3,540		1,606			944		528			(2,210	)		12,032
Allocated accumulated other comprehensive income (loss)		2,978		431		10			80		(40	)		24			3,483

Total Genworth Financial, Inc.’s stockholders’ equity		10,602		3,971		1,616			1,024		488			(2,186	)		15,515
Noncontrolling interests		—		1,219		—			—		—			—			1,219

Total stockholders’ equity		10,602		5,190		1,616			1,024		488			(2,186	)		16,734

Total liabilities and stockholders’ equity	$	79,387	$	9,038	$	2,305		$	2,104	$	14,216		$	2,715		$	109,765

⁽¹⁾	Includes inter-segment eliminations and non-core products.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Deferred Acquisition Costs Rollforward

(amounts in millions)


	U.S. Life Insurance⁽¹⁾			International Mortgage Insurance			U.S. Mortgage Insurance			International Protection			Runoff⁽²⁾			Corporate and Other		Total
Unamortized balance as of March 31, 2014	$	4,717		$	147		$	13		$	250		$	325		$	—	$	5,452
Costs deferred		79			16			2			22			1			—		120
Amortization, net of interest accretion		(67	)		(12	)		(1	)		(29	)		(9	)		—		(118	)
Impact of foreign currency translation		—			4			—			(2	)		—			—		2

Unamortized balance as of June 30, 2014		4,729			155			14			241			317			—		5,456
Effect of accumulated net unrealized investment (gains) losses		(365	)		—			—			—			(6	)		—		(371	)

Balance as of June 30, 2014	$	4,364		$	155		$	14		$	241		$	311		$	—	$	5,085

⁽¹⁾	Amortization, net of interest accretion, included $1 million of amortization related to net investment gains for the policyholder account balances.

⁽²⁾	Amortization, net of interest accretion, included $2 million of amortization related to net investment gains for the policyholder account balances.

U.S. Life Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income—U.S. Life Insurance Division

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	762		$	759		$	1,521		$	761		$	751		$	738		$	707		$	2,957
Net investment income		671			660			1,331			675			650			658			638			2,621
Net investment gains (losses)		25			3			28			(2	)		(6	)		17			(12	)		(3	)
Insurance and investment product fees and other		175			171			346			185			192			190			188			755

Total revenues		1,633			1,593			3,226			1,619			1,587			1,603			1,521			6,330

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,087			1,030			2,117			1,036			924			1,041			974			3,975
Interest credited		155			154			309			156			156			155			152			619
Acquisition and operating expenses, net of deferrals		156			161			317			164			154			177			163			658
Amortization of deferred acquisition costs and intangibles		81			75			156			78			139			80			87			384
Interest expense		21			21			42			25			25			24			23			97

Total benefits and expenses		1,500			1,441			2,941			1,459			1,398			1,477			1,399			5,733

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		133			152			285			160			189			126			122			597
Provision for income taxes		47			57			104			40			82			46			45			213

INCOME FROM CONTINUING OPERATIONS		86			95			181			120			107			80			77			384

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(17	)		(1	)		(18	)		(1	)		4			(10	)		8			1
Expenses related to restructuring, net		—			—			—			—			—			9			—			9

NET OPERATING INCOME	$	69		$	94		$	163		$	119		$	111		$	79		$	85		$	394


Effective tax rate (operating income)⁽¹⁾		35.6	%		37.3	%		36.6	%		25.3	%		43.0	%		37.1	%		36.4	%		35.7	%

⁽¹⁾	The operating income (loss) effective tax rate for all pages in this financial supplement was calculated using whole dollars. As a result, the percentages shown may differ from an operating income (loss) effective tax rate calculated using the rounded numbers in this financial supplement.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income—U.S. Life Insurance Division

(amounts in millions)


	U.S. Life Insurance Segment
Three months ended June 30, 2014	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	171		$	577		$	14		$	762		$	762
Net investment income		137			292			242			671			671
Net investment gains (losses)		23			3			(1	)		25			25
Insurance and investment product fees and other		173			—			2			175			175

Total revenues		504			872			257			1,633			1,633

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		257			735			95			1,087			1,087
Interest credited		66			—			89			155			155
Acquisition and operating expenses, net of deferrals		45			97			14			156			156
Amortization of deferred acquisition costs and intangibles		32			27			22			81			81
Interest expense		21			—			—			21			21

Total benefits and expenses		421			859			220			1,500			1,500

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		83			13			37			133			133
Provision for income taxes		29			5			13			47			47

INCOME FROM CONTINUING OPERATIONS		54			8			24			86			86

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(15	)		(2	)		—			(17	)		(17	)

NET OPERATING INCOME	$	39		$	6		$	24		$	69		$	69



Effective tax rate (operating income)		35.4	%		37.1	%		35.5	%		35.6	%		35.6	%


	U.S. Life Insurance Segment
Three months ended June 30, 2013	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	173		$	550		$	15		$	738		$	738
Net investment income		133			277			248			658			658
Net investment gains (losses)		9			(2	)		10			17			17
Insurance and investment product fees and other		187			1			2			190			190

Total revenues		502			826			275			1,603			1,603

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		280			663			98			1,041			1,041
Interest credited		68			—			87			155			155
Acquisition and operating expenses, net of deferrals		50			107			20			177			177
Amortization of deferred acquisition costs and intangibles		33			24			23			80			80
Interest expense		24			—			—			24			24

Total benefits and expenses		455			794			228			1,477			1,477

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		47			32			47			126			126
Provision for income taxes		16			13			17			46			46

INCOME FROM CONTINUING OPERATIONS		31			19			30			80			80
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(6	)		1			(5	)		(10	)		(10	)
Expenses related to restructuring, net		2			6			1			9			9

NET OPERATING INCOME	$	27		$	26		$	26		$	79		$	79



Effective tax rate (operating income)		34.4	%		40.2	%		36.3	%		37.1	%		37.1	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income—U.S. Life Insurance Division

(amounts in millions)


	U.S. Life Insurance Segment
Six months ended June 30, 2014	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	354		$	1,142		$	25		$	1,521		$	1,521
Net investment income		265			582			484			1,331			1,331
Net investment gains (losses)		24			3			1			28			28
Insurance and investment product fees and other		341			1			4			346			346

Total revenues		984			1,728			514			3,226			3,226

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		538			1,399			180			2,117			2,117
Interest credited		132			—			177			309			309
Acquisition and operating expenses, net of deferrals		95			190			32			317			317
Amortization of deferred acquisition costs and intangibles		58			53			45			156			156
Interest expense		42			—			—			42			42

Total benefits and expenses		865			1,642			434			2,941			2,941

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		119			86			80			285			285
Provision for income taxes		43			32			29			104			104

INCOME FROM CONTINUING OPERATIONS		76			54			51			181			181
ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(16	)		(2	)		—			(18	)		(18	)

NET OPERATING INCOME	$	60		$	52		$	51		$	163		$	163



Effective tax rate (operating income)		36.8	%		37.0	%		35.9	%		36.6	%		36.6	%


	U.S. Life Insurance Segment
Six months ended June 30, 2013	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	354		$	1,063		$	28		$	1,445		$	1,445
Net investment income		264			541			491			1,296			1,296
Net investment gains (losses)		5			(5	)		5			5			5
Insurance and investment product fees and other		373			2			3			378			378

Total revenues		996			1,601			527			3,124			3,124

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		544			1,291			180			2,015			2,015
Interest credited		132			—			175			307			307
Acquisition and operating expenses, net of deferrals		100			201			39			340			340
Amortization of deferred acquisition costs and intangibles		73			49			45			167			167
Interest expense		47			—			—			47			47

Total benefits and expenses		896			1,541			439			2,876			2,876

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		100			60			88			248			248
Provision for income taxes		36			23			32			91			91

INCOME FROM CONTINUING OPERATIONS		64			37			56			157			157
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(3	)		3			(2	)		(2	)		(2	)
Expenses related to restructuring, net		2			6			1			9			9

NET OPERATING INCOME	$	63		$	46		$	55		$	164		$	164



Effective tax rate (operating income)		36.3	%		38.2	%		35.9	%		36.7	%		36.7	%

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income and Sales—U.S. Life Insurance Segment—Life Insurance

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	171		$	183		$	354		$	164		$	166		$	173		$	181		$	684
Net investment income		137			128			265			139			138			133			131			541
Net investment gains (losses)		23			1			24			8			—			9			(4	)		13
Insurance and investment product fees and other		173			168			341			183			188			187			186			744

Total revenues		504			480			984			494			492			502			494			1,982

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		257			281			538			241			160			280			264			945
Interest credited		66			66			132			66			68			68			64			266
Acquisition and operating expenses, net of deferrals		45			50			95			47			47			50			50			194
Amortization of deferred acquisition costs and intangibles		32			26			58			31			88			33			40			192
Interest expense		21			21			42			25			25			24			23			97

Total benefits and expenses		421			444			865			410			388			455			441			1,694

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		83			36			119			84			104			47			53			288
Provision for income taxes		29			14			43			22			50			16			20			108

INCOME FROM CONTINUING OPERATIONS		54			22			76			62			54			31			33			180

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(15	)		(1	)		(16	)		(6	)		—			(6	)		3			(9	)
Expenses related to restructuring, net		—			—			—			—			—			2			—			2

NET OPERATING INCOME	$	39		$	21		$	60		$	56		$	54		$	27		$	36		$	173


Effective tax rate (operating income)		35.4	%		39.3	%		36.8	%		25.6	%		47.5	%		34.4	%		37.6	%		37.6	%

SALES:
Sales by Product:
Term Life	$	14		$	13		$	27		$	9		$	5		$	4		$	4		$	22
Term Universal Life		—			—			—			—			—			—			1			1
Universal Life		7			6			13			5			5			5			9			24
Linked-Benefits		5			2			7			3			2			3			2			10

Total Sales	$	26		$	21		$	47		$	17		$	12		$	12		$	16		$	57

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Life Insurance In-Force

(amounts in millions)


	2014				2013
	2Q		1Q		4Q		3Q		2Q		1Q
Term and Whole Life Insurance
Life insurance in-force, net of reinsurance	$	341,383	$	338,372	$	336,015	$	335,039	$	336,008	$	338,014
Life insurance in-force before reinsurance	$	524,743	$	523,925	$	523,694	$	525,171	$	528,874	$	534,194

Term Universal Life Insurance
Life insurance in-force, net of reinsurance	$	130,270	$	131,256	$	132,293	$	133,500	$	134,868	$	136,222
Life insurance in-force before reinsurance	$	131,296	$	132,294	$	133,348	$	134,555	$	135,937	$	137,297

Universal Life Insurance
Life insurance in-force, net of reinsurance	$	42,454	$	42,814	$	43,150	$	43,447	$	43,773	$	44,051
Life insurance in-force before reinsurance	$	49,004	$	49,418	$	49,790	$	50,203	$	50,558	$	50,906

Total Life Insurance
Life insurance in-force, net of reinsurance	$	514,107	$	512,442	$	511,458	$	511,986	$	514,649	$	518,287
Life insurance in-force before reinsurance	$	705,043	$	705,637	$	706,832	$	709,929	$	715,369	$	722,397

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income and Sales—U.S. Life Insurance Segment—Long-Term Care Insurance

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	577		$	565		$	1,142		$	582		$	564		$	550		$	513		$	2,209
Net investment income		292			290			582			291			282			277			264			1,114
Net investment gains (losses)		3			—			3			(4	)		(2	)		(2	)		(3	)		(11	)
Insurance and investment product fees and other		—			1			1			—			2			1			1			4

Total revenues		872			856			1,728			869			846			826			775			3,316

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		735			664			1,399			701			659			663			628			2,651
Interest credited		—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		97			93			190			94			90			107			94			385
Amortization of deferred acquisition costs and intangibles		27			26			53			27			31			24			25			107
Interest expense		—			—			—			—			—			—			—			—

Total benefits and expenses		859			783			1,642			822			780			794			747			3,143

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		13			73			86			47			66			32			28			173
Provision for income taxes		5			27			32			8			26			13			10			57

INCOME FROM CONTINUING OPERATIONS		8			46			54			39			40			19			18			116

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(2	)		—			(2	)		3			1			1			2			7
Expenses related to restructuring, net		—			—			—			—			—			6			—			6

NET OPERATING INCOME	$	6		$	46		$	52		$	42		$	41		$	26		$	20		$	129


Effective tax rate (operating income)		37.1	%		37.0	%		37.0	%		19.8	%		38.6	%		40.2	%		35.4	%		33.3	%

SALES:
Individual Long-Term Care Insurance	$	24		$	21		$	45		$	24		$	37		$	38		$	35		$	134
Group Long-Term Care Insurance		2			1			3			2			3			5			5			15

Total Sales	$	26		$	22		$	48		$	26		$	40		$	43		$	40		$	149



RATIOS:
Loss Ratio⁽¹⁾		73.2	%		63.3	%		68.3	%		68.2	%		63.7	%		66.6	%		66.2	%		66.2	%
Gross Benefits Ratio⁽²⁾		127.3	%		117.5	%		122.4	%		120.4	%		116.8	%		120.3	%		122.8	%		120.0	%

⁽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 the benefits and other changes in policy reserves by net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income and Sales—U.S. Life Insurance Segment—Fixed Annuities

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	14		$	11		$	25		$	15		$	21		$	15		$	13		$	64
Net investment income		242			242			484			245			230			248			243			966
Net investment gains (losses)		(1	)		2			1			(6	)		(4	)		10			(5	)		(5	)
Insurance and investment product fees and other		2			2			4			2			2			2			1			7

Total revenues		257			257			514			256			249			275			252			1,032

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		95			85			180			94			105			98			82			379
Interest credited		89			88			177			90			88			87			88			353
Acquisition and operating expenses, net of deferrals		14			18			32			23			17			20			19			79
Amortization of deferred acquisition costs and intangibles		22			23			45			20			20			23			22			85
Interest expense		—			—			—			—			—			—			—			—

Total benefits and expenses		220			214			434			227			230			228			211			896

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		37			43			80			29			19			47			41			136
Provision for income taxes		13			16			29			10			6			17			15			48

INCOME FROM CONTINUING OPERATIONS		24			27			51			19			13			30			26			88

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			—			—			2			3			(5	)		3			3
Expenses related to restructuring, net		—			—			—			—			—			1			—			1

NET OPERATING INCOME	$	24		$	27		$	51		$	21		$	16		$	26		$	29		$	92


Effective tax rate (operating income)		35.5	%		36.2	%		35.9	%		33.6	%		35.4	%		36.3	%		35.5	%		35.3	%

SALES:
Sales by Product:
Single Premium Immediate Annuities	$	29		$	28		$	57		$	52		$	53		$	48		$	40		$	193
Single Premium Deferred Annuities		400			492			892			678			707			164			67			1,616

Total Sales	$	429		$	520		$	949		$	730		$	760		$	212		$	107		$	1,809

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Operating Performance Measures—U.S. Life Insurance Segment—Fixed Annuities

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Single Premium Deferred Annuities
Account value, beginning of the period	$	12,070		$	11,807		$	11,807		$	11,341		$	10,842		$	10,881		$	11,038		$	11,038
Deposits		404			496			900			686			714			166			68			1,634
Surrenders, benefits and product charges		(320	)		(312	)		(632	)		(300	)		(293	)		(281	)		(302	)		(1,176	)

Net flows		84			184			268			386			421			(115	)		(234	)		458
Interest credited		79			79			158			80			78			76			77			311

Account value, end of the period		12,233			12,070			12,233			11,807			11,341			10,842			10,881			11,807


Single Premium Immediate Annuities
Account value, beginning of the period		5,875			5,837			5,837			5,931			6,010			6,319			6,442			6,442
Premiums and deposits		59			49			108			91			80			71			65			307
Surrenders, benefits and product charges		(213	)		(215	)		(428	)		(221	)		(214	)		(228	)		(235	)		(898	)

Net flows		(154	)		(166	)		(320	)		(130	)		(134	)		(157	)		(170	)		(591	)
Interest credited		67			68			135			69			71			72			73			285
Effect of accumulated net unrealized investment gains (losses)		103			136			239			(33	)		(16	)		(224	)		(26	)		(299	)

Account value, end of the period		5,891			5,875			5,891			5,837			5,931			6,010			6,319			5,837


Structured Settlements
Account value, net of reinsurance, beginning of the period		1,092			1,093			1,093			1,095			1,097			1,101			1,101			1,101
Surrenders, benefits and product charges		(21	)		(15	)		(36	)		(16	)		(17	)		(18	)		(15	)		(66	)

Net flows		(21	)		(15	)		(36	)		(16	)		(17	)		(18	)		(15	)		(66	)
Interest credited		14			14			28			14			15			14			15			58

Account value, net of reinsurance, end of the period		1,085			1,092			1,085			1,093			1,095			1,097			1,101			1,093

Total Fixed Annuities	$	19,209		$	19,037		$	19,209		$	18,737		$	18,367		$	17,949		$	18,301		$	18,737

Global Mortgage Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income—Global Mortgage Insurance Division

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	381		$	372		$	753		$	390		$	380		$	392		$	388		$	1,550
Net investment income		86			92			178			93			98			95			107			393
Net investment gains (losses)		12			(3	)		9			9			7			13			3			32
Insurance and investment product fees and other		(3	)		2			(1	)		1			—			—			1			2

Total revenues		476			463			939			493			485			500			499			1,977

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		107			110			217			172			196			177			184			729
Acquisition and operating expenses, net of deferrals		93			82			175			107			91			96			91			385
Amortization of deferred acquisition costs and intangibles		17			17			34			15			15			19			17			66
Interest expense		8			8			16			7			9			8			9			33

Total benefits and expenses		225			217			442			301			311			300			301			1,213

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		251			246			497			192			174			200			198			764
Provision for income taxes		61			80			141			44			45			55			57			201

INCOME FROM CONTINUING OPERATIONS		190			166			356			148			129			145			141			563
Less: net income attributable to noncontrolling interests		52			35			87			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		138			131			269			111			89			106			103			409

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(4	)		1			(3	)		(4	)		(2	)		(5	)		(1	)		(12	)
(Gains) losses on early extinguishment of debt, net		2			—			2			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			1			—			1

NET OPERATING INCOME⁽¹⁾	$	136		$	132		$	268		$	107		$	87		$	102		$	102		$	398


Effective tax rate (operating income)		23.3	%		33.9	%		28.9	%		20.7	%		25.3	%		27.2	%		30.0	%		25.9	%

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the Global Mortgage Insurance Division was $147 million and $295 million for the three and six months ended June 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Three months ended June 30, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	128		$	102		$	7		$	237		$	144		$	381
Net investment income		39			36			—			75			11			86
Net investment gains (losses)		12			—			—			12			—			12
Insurance and investment product fees and other		1			(4	)		(1	)		(4	)		1			(3	)

Total revenues		180			134			6			320			156			476

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		15			24			6			45			62			107
Acquisition and operating expenses, net of deferrals		28			23			8			59			34			93
Amortization of deferred acquisition costs and intangibles		9			6			—			15			2			17
Interest expense		6			2			—			8			—			8

Total benefits and expenses		58			55			14			127			98			225

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		122			79			(8	)		193			58			251
Provision (benefit) for income taxes		32			11			(1	)		42			19			61

INCOME (LOSS) FROM CONTINUING OPERATIONS		90			68			(7	)		151			39			190
Less: net income attributable to noncontrolling interests		41			11			—			52			—			52

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		49			57			(7	)		99			39			138

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(4	)		—			—			(4	)		—			(4	)
(Gains) losses on early extinguishment of debt, net		2			—			—			2			—			2

NET OPERATING INCOME	$	47		$	57		$	(7	)	$	97		$	39		$	136


Effective tax rate (operating income)		26.3	%		10.4	%		11.3	%		18.8	%		32.4	%		23.3	%

	International Mortgage Insurance Segment
Three months ended June 30, 2013	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	141		$	101		$	9		$	251		$	141		$	392
Net investment income		42			42			1			85			10			95
Net investment gains (losses)		12			1			—			13			—			13
Insurance and investment product fees and other		(1	)		—			1			—			—			—

Total revenues		194			144			11			349			151			500

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		35			36			9			80			97			177
Acquisition and operating expenses, net of deferrals		22			27			12			61			35			96
Amortization of deferred acquisition costs and intangibles		10			6			1			17			2			19
Interest expense		5			3			—			8			—			8

Total benefits and expenses		72			72			22			166			134			300

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		122			72			(11	)		183			17			200
Provision (benefit) for income taxes		35			17			(1	)		51			4			55

INCOME (LOSS) FROM CONTINUING OPERATIONS		87			55			(10	)		132			13			145
Less: net income attributable to noncontrolling interests		39			—			—			39			—			39

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		48			55			(10	)		93			13			106

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(5	)		—			—			(5	)		—			(5	)
Expenses related to restructuring, net		—			—			1			1			—			1

NET OPERATING INCOME (LOSS)	$	43		$	55		$	(9	)	$	89		$	13		$	102


Effective tax rate (operating income (loss))		29.3	%		23.5	%		5.7	%		27.8	%		22.9	%		27.2	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Six months ended June 30, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	258		$	199		$	15		$	472		$	281		$	753
Net investment income		78			70			1			149			29			178
Net investment gains (losses)		9			—			—			9			—			9
Insurance and investment product fees and other		3			(4	)		(1	)		(2	)		1			(1	)

Total revenues		348			265			15			628			311			939

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		41			41			10			92			125			217
Acquisition and operating expenses, net of deferrals		49			42			17			108			67			175
Amortization of deferred acquisition costs and intangibles		19			11			—			30			4			34
Interest expense		11			5			—			16			—			16

Total benefits and expenses		120			99			27			246			196			442

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		228			166			(12	)		382			115			497
Provision (benefit) for income taxes		63			36			(1	)		98			43			141

INCOME (LOSS) FROM CONTINUING OPERATIONS		165			130			(11	)		284			72			356
Less: net income attributable to noncontrolling interests		76			11			—			87			—			87

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		89			119			(11	)		197			72			269

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(3	)		—			—			(3	)		—			(3	)
(Gains) losses on early extinguishment of debt, net		2			—			—			2			—			2

NET OPERATING INCOME	$	88		$	119		$	(11	)	$	196		$	72		$	268


Effective tax rate (operating income)		28.8	%		21.2	%		11.0	%		25.3	%		37.2	%		28.9	%

	International Mortgage Insurance Segment
Six months ended June 30, 2013	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	285		$	202		$	18		$	505		$	275		$	780
Net investment income		86			85			2			173			29			202
Net investment gains (losses)		16			—			—			16			—			16
Insurance and investment product fees and other		(1	)		—			1			—			1			1

Total revenues		386			287			21			694			305			999

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		79			84			17			180			181			361
Acquisition and operating expenses, net of deferrals		41			51			21			113			74			187
Amortization of deferred acquisition costs and intangibles		20			12			1			33			3			36
Interest expense		11			6			—			17			—			17

Total benefits and expenses		151			153			39			343			258			601

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		235			134			(18	)		351			47			398
Provision (benefit) for income taxes		67			33			(1	)		99			13			112

INCOME (LOSS) FROM CONTINUING OPERATIONS		168			101			(17	)		252			34			286
Less: net income attributable to noncontrolling interests		77			—			—			77			—			77

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		91			101			(17	)		175			34			209

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(6	)		—			—			(6	)		—			(6	)
Expenses related to restructuring, net		—			—			1			1			—			1

NET OPERATING INCOME (LOSS)	$	85		$	101		$	(16	)	$	170		$	34		$	204


Effective tax rate (operating income (loss))		29.8	%		24.9	%		5.3	%		28.8	%		27.5	%		28.6	%

International Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income—International Mortgage Insurance Segment

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	237		$	235		$	472		$	248		$	243		$	251		$	254		$	996
Net investment income		75			74			149			80			80			85			88			333
Net investment gains (losses)		12			(3	)		9			9			7			13			3			32
Insurance and investment product fees and other		(4	)		2			(2	)		1			(1	)		—			—			—

Total revenues		320			308			628			338			329			349			345			1,361

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		45			47			92			64			73			80			100			317
Acquisition and operating expenses, net of deferrals		59			49			108			72			56			61			52			241
Amortization of deferred acquisition costs and intangibles		15			15			30			14			13			17			16			60
Interest expense		8			8			16			7			9			8			9			33

Total benefits and expenses		127			119			246			157			151			166			177			651

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		193			189			382			181			178			183			168			710
Provision for income taxes		42			56			98			39			46			51			48			184

INCOME FROM CONTINUING OPERATIONS		151			133			284			142			132			132			120			526
Less: net income attributable to noncontrolling interests		52			35			87			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		99			98			197			105			92			93			82			372

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(4	)		1			(3	)		(4	)		(2	)		(5	)		(1	)		(12	)
(Gains) losses on early extinguishment of debt, net		2			—			2			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			1			—			1

NET OPERATING INCOME⁽¹⁾	$	97		$	99		$	196		$	101		$	90		$	89		$	81		$	361


Effective tax rate (operating income)		18.8	%		30.7	%		25.3	%		18.8	%		25.0	%		27.8	%		29.9	%		25.3	%

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Mortgage Insurance segment was $108 million and $223 million for the three and six months ended June 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income and Sales—International Mortgage Insurance Segment—Canada

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	128		$	130		$	258		$	137		$	138		$	141		$	144		$	560
Net investment income		39			39			78			41			43			42			44			170
Net investment gains (losses)		12			(3	)		9			6			9			12			4			31
Insurance and investment product fees and other		1			2			3			—			—			(1	)		—			(1	)

Total revenues		180			168			348			184			190			194			192			760

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		15			26			41			30			30			35			44			139
Acquisition and operating expenses, net of deferrals		28			21			49			29			23			22			19			93
Amortization of deferred acquisition costs and intangibles		9			10			19			8			9			10			10			37
Interest expense		6			5			11			5			6			5			6			22

Total benefits and expenses		58			62			120			72			68			72			79			291

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		122			106			228			112			122			122			113			469
Provision for income taxes		32			31			63			28			38			35			32			133

INCOME FROM CONTINUING OPERATIONS		90			75			165			84			84			87			81			336
Less: net income attributable to noncontrolling interests		41			35			76			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		49			40			89			47			44			48			43			182

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(4	)		1			(3	)		(3	)		(3	)		(5	)		(1	)		(12	)
(Gains) losses on early extinguishment of debt, net		2			—			2			—			—			—			—			—

NET OPERATING INCOME⁽¹⁾	$	47		$	41		$	88		$	44		$	41		$	43		$	42		$	170


Effective tax rate (operating income)		26.3	%		31.6	%		28.8	%		22.9	%		35.0	%		29.3	%		30.2	%		29.5	%

SALES:
New Insurance Written (NIW)
Flow	$	5,000		$	2,900		$	7,900		$	5,000		$	6,000		$	4,700		$	3,300		$	19,000
Bulk		7,500			2,900		$	10,400			2,400			3,900			6,400			2,400			15,100

Total Canada NIW⁽²⁾	$	12,500		$	5,800		$	18,300		$	7,400		$	9,900		$	11,100		$	5,700		$	34,100

⁽¹⁾	Net operating income for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $51 million and $96 million for the three and six months ended June 30, 2014, respectively.

⁽²⁾	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $13,300 million and $19,700 million for the three and six months ended June 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income and Sales—International Mortgage Insurance Segment—Australia

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	102		$	97		$	199		$	98		$	98		$	101		$	101		$	398
Net investment income		36			34			70			38			36			42			43			159
Net investment gains (losses)		—			—			—			—			(2	)		1			(1	)		(2	)
Insurance and investment product fees and other		(4	)		—			(4	)		1			(1	)		—			—			—

Total revenues		134			131			265			137			131			144			143			555

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		24			17			41			21			29			36			48			134
Acquisition and operating expenses, net of deferrals		23			19			42			34			25			27			24			110
Amortization of deferred acquisition costs and intangibles		6			5			11			5			5			6			6			22
Interest expense		2			3			5			2			3			3			3			11

Total benefits and expenses		55			44			99			62			62			72			81			277

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		79			87			166			75			69			72			62			278
Provision for income taxes		11			25			36			9			9			17			16			51

INCOME FROM CONTINUING OPERATIONS		68			62			130			66			60			55			46			227
Less: net income attributable to noncontrolling interests		11			—			11			—			—			—			—			—

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		57			62			119			66			60			55			46			227

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		—			—			—			—			1			—			—			1

NET OPERATING INCOME⁽¹⁾	$	57		$	62		$	119		$	66		$	61		$	55		$	46		$	228


Effective tax rate (operating income)		10.4	%		29.0	%		21.2	%		12.0	%		13.7	%		23.5	%		26.7	%		18.6	%

SALES:
New Insurance Written (NIW)
Flow	$	7,900		$	7,800		$	15,700		$	9,000		$	8,000		$	8,700		$	7,900		$	33,600
Bulk		—			—			—			—			100			900			—			1,000

Total Australia NIW⁽²⁾	$	7,900		$	7,800		$	15,700		$	9,000		$	8,100		$	9,600		$	7,900		$	34,600

⁽¹⁾	Net operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $63 million and $137 million for the three and six months ended June 30, 2014, respectively.

⁽²⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $8,700 million and $17,800 million for the three and six months ended June 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Loss and Sales—International Mortgage Insurance Segment—Other Countries

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	7		$	8		$	15		$	13		$	7		$	9		$	9		$	38
Net investment income		—			1			1			1			1			1			1			4
Net investment gains (losses)		—			—			—			3			—			—			—			3
Insurance and investment product fees and other		(1	)		—			(1	)		—			—			1			—			1

Total revenues		6			9			15			17			8			11			10			46

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		6			4			10			13			14			9			8			44
Acquisition and operating expenses, net of deferrals		8			9			17			9			8			12			9			38
Amortization of deferred acquisition costs and intangibles		—			—			—			1			(1	)		1			—			1
Interest expense		—			—			—			—			—			—			—			—

Total benefits and expenses		14			13			27			23			21			22			17			83

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(8	)		(4	)		(12	)		(6	)		(13	)		(11	)		(7	)		(37	)
Provision (benefit) for income taxes		(1	)		—			(1	)		2			(1	)		(1	)		—			—

LOSS FROM CONTINUING OPERATIONS		(7	)		(4	)		(11	)		(8	)		(12	)		(10	)		(7	)		(37	)
Less: net income attributable to noncontrolling interests		—			—			—			—			—			—			—			—

LOSS FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(7	)		(4	)		(11	)		(8	)		(12	)		(10	)		(7	)		(37	)

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		—			—			—			(1	)		—			—			—			(1	)
Expenses related to restructuring, net		—			—			—			—			—			1			—			1

NET OPERATING LOSS⁽¹⁾	$	(7	)	$	(4	)	$	(11	)	$	(9	)	$	(12	)	$	(9	)	$	(7	)	$	(37	)


Effective tax rate (operating loss)		11.3	%		10.3	%		11.0	%		-15.3	%		11.2	%		5.7	%		4.9	%		3.1	%

SALES:
New Insurance Written (NIW)
Flow	$	500		$	400		$	900		$	500		$	500		$	400		$	400		$	1,800
Bulk		—			—			—			600			—			—			—			600

Total Other Countries NIW⁽²⁾	$	500		$	400		$	900		$	1,100		$	500		$	400		$	400		$	2,400

⁽¹⁾	Net operating loss for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $(6) million and $(10) million for the three and six months ended June 30, 2014, respectively.

⁽²⁾	New insurance written for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $500 million and $900 million for the three and six months ended June 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written
Canada	$	146		$	77		$	223		$	125		$	156		$	134		$	84		$	499
Australia		125			126			251			147			123			132			117			519
Other Countries⁽¹⁾		1			6			7			6			6			7			5			24

Total Net Premiums Written	$	272		$	209		$	481		$	278		$	285		$	273		$	206		$	1,042

Loss Ratio⁽²⁾
Canada		12	%		20	%		16	%		22	%		22	%		25	%		31	%		25	%
Australia		23	%		17	%		20	%		21	%		31	%		35	%		47	%		34	%
Other Countries		90	%		55	%		71	%		102	%		170	%		110	%		90	%		115	%
Total Loss Ratio		19	%		20	%		20	%		25	%		31	%		32	%		39	%		32	%

GAAP Basis Expense Ratio⁽³⁾
Canada⁽⁴⁾		29	%		23	%		26	%		27	%		23	%		22	%		20	%		23	%
Australia		28	%		25	%		27	%		39	%		30	%		32	%		31	%		33	%
Other Countries⁽¹⁾		131	%		107	%		119	%		69	%		106	%		129	%		113	%		101	%
Total GAAP Basis Expense Ratio		32	%		27	%		29	%		34	%		29	%		30	%		27	%		30	%

Adjusted Expense Ratio⁽⁵⁾
Canada⁽⁶⁾		26	%		39	%		30	%		30	%		20	%		23	%		35	%		26	%
Australia		23	%		20	%		21	%		26	%		24	%		25	%		27	%		25	%
Other Countries⁽¹⁾		NM	⁽⁷⁾		142	%		NM	⁽⁷⁾		146	%		136	%		177	%		174	%		158	%
Total Adjusted Expense Ratio		28	%		30	%		29	%		31	%		24	%		28	%		34	%		29	%

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⁾

Includes the impact of settlements and cancelled insurance contracts, primarily with lenders in Europe. Primary flow risk in-force excludes $298 million, $282 million, $316 million, $285 million, $250 million and $225 million of risk in-force in Europe ceded under quota share reinsurance agreements as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively.

⁽²⁾

The ratio of incurred losses and loss adjustment expense to net earned premiums. In determining the pricing of the mortgage insurance products, the company develops a pricing loss ratio which uses industry and company loss experience over a number of years, which incorporate both favorable and unfavorable economic environments, differing coverage levels and varying capital requirements. Actual results may vary from pricing loss ratios for a number of reasons, which include differing economic conditions and actual individual product and lender performance.

⁽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⁾	Excluding the impact of debt early redemption payment of $6 million in the second quarter of 2014, the adjusted GAAP basis expense ratio was 24% for the three and six months ended June 30, 2014.

⁽⁵⁾	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.

⁽⁶⁾	Excluding the impact of debt early redemption payment of $6 million in the second quarter of 2014, the adjusted expense ratio was 21% and 27% for the three and six months ended June 30, 2014, respectively.

⁽⁷⁾	“NM” is defined as not meaningful for percentages greater than 200%.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2014				2013
	2Q		1Q		4Q		3Q		2Q		1Q
Primary Insurance In-Force
Canada⁽¹⁾	$	314,500	$	291,900	$	298,000	$	300,700	$	285,200	$	284,700
Australia		288,500		281,000		267,900		275,500		266,500		299,000
Other Countries		26,000		26,200		26,300		32,500		31,300		31,400

Total Primary Insurance In-Force	$	629,000	$	599,100	$	592,200	$	608,700	$	583,000	$	615,100

Primary Risk In-Force⁽²⁾
Canada
Flow	$	84,500	$	80,100	$	82,300	$	83,400	$	79,700	$	80,900
Bulk		25,600		22,100		22,000		21,900		20,100		18,800

Total Canada		110,100		102,200		104,300		105,300		99,800		99,700

Australia
Flow		93,800		91,100		86,700		88,800		85,700		96,100
Bulk		7,200		7,200		7,100		7,600		7,600		8,500

Total Australia		101,000		98,300		93,800		96,400		93,300		104,600

Other Countries
Flow⁽³⁾		3,200		3,300		3,200		4,000		3,900		3,900
Bulk		400		400		400		300		300		300

Total Other Countries		3,600		3,700		3,600		4,300		4,200		4,200

Total Primary Risk In-Force	$	214,700	$	204,200	$	201,700	$	206,000	$	197,300	$	208,500

⁽¹⁾

As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company surveyed its largest customers and obtained updated outstanding balances in Canada. As a result, the company estimates that the outstanding balance of insured mortgages was approximately $141.0 billion as of March 31, 2014, $152.0 billion as of December 31, 2013, $155.0 billion as of September 30, 2013 and $150.0 billion as of June 30, 2013 and March 31, 2013. This is based on the extrapolation of the amounts reported by lenders surveyed to the entire insured population.

⁽²⁾

The businesses in Australia and Canada currently provide 100% coverage on the majority of the loans the company insures in those markets. For the purpose of representing the risk in-force, the company 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 businesses in Australia and Canada. This factor was 35% for all periods presented.

⁽³⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(dollar amounts in millions)



Primary Insurance	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Insured loans in-force⁽¹⁾		1,602,928			1,549,650			1,527,554			1,501,139			1,464,060
Insured delinquent loans		1,703			1,860			1,830			1,778			1,778
Insured delinquency rate⁽²⁾		0.11	%		0.12	%		0.12	%		0.12	%		0.12	%

Flow loans in-force⁽¹⁾		1,213,846			1,197,083			1,187,753			1,171,486			1,151,957
Flow delinquent loans		1,493			1,634			1,591			1,566			1,562
Flow delinquency rate⁽²⁾		0.12	%		0.14	%		0.13	%		0.13	%		0.14	%

Bulk loans in-force⁽¹⁾		389,082			352,567			339,801			329,653			312,103
Bulk delinquent loans		210			226			239			212			216
Bulk delinquency rate⁽²⁾		0.05	%		0.06	%		0.07	%		0.06	%		0.07	%

Loss Metrics	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013

Beginning Reserves	$	97		$	102		$	108		$	112		$	118
Paid claims⁽³⁾		(26	)		(27	)		(33	)		(33	)		(39	)
Increase in reserves		16			26			30			27			36
Impact of changes in foreign exchange rates		3			(4	)		(3	)		2			(3	)

Ending Reserves	$	90		$	97		$	102		$	108		$	112


	June 30, 2014						March 31, 2014						June 30, 2013
Province and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
Ontario		47	%		0.06	%		47	%		0.07	%		47	%		0.07%
British Columbia		15			0.14	%		15			0.17	%		15			0.18%
Alberta		16			0.10	%		16			0.12	%		16			0.15%
Quebec		14			0.18	%		14			0.19	%		14			0.17%
Nova Scotia		2			0.23	%		2			0.24	%		2			0.20%
Saskatchewan		2			0.11	%		2			0.11	%		2			0.14%
Manitoba		2			0.06	%		2			0.08	%		2			0.09%
New Brunswick		1			0.21	%		1			0.24	%		1			0.20%
All Other		1			0.12	%		1			0.11	%		1			0.10%

Total		100	%		0.11	%		100	%		0.12	%		100	%		0.12%


By Policy Year
2006 and prior		33	%		0.03	%		34	%		0.04	%		37	%		0.05%
2007		9			0.18	%		10			0.21	%		10			0.26%
2008		8			0.22	%		8			0.25	%		9			0.28%
2009		5			0.22	%		5			0.25	%		6			0.23%
2010		8			0.26	%		9			0.26	%		9			0.26%
2011		8			0.25	%		8			0.27	%		9			0.23%
2012		12			0.14	%		12			0.14	%		14			0.06%
2013		11			0.05	%		12			0.04	%		6			— %
2014		6			—	%		2			—	%		—			— %

Total		100	%		0.11	%		100	%		0.12	%		100	%		0.12%

⁽¹⁾	Insured loans in-force represent the original number of loans insured for which the coverage term has not expired, and for which no policy level cancellation or termination has been received.

⁽²⁾	Delinquent rates are based on insured loans in-force.

⁽³⁾	Paid claims exclude adjustments for expected recoveries related to loss reserves.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(Canadian dollar amounts in millions)


	2014								2013
	2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	28		$	28		$	56	$	32		$	32		$	39		$	51		$	154
Bulk		—			1			1		2			2			1			2			7

Total Paid Claims	$	28		$	29		$	57	$	34		$	34		$	40		$	53		$	161


Average Paid Claim (in thousands)	$	63.4		$	66.4				$	72.2		$	69.4		$	73.1		$	84.9

Average Reserve Per Delinquency (in thousands)	$	56.4		$	57.5				$	59.0		$	62.5		$	66.1		$	61.3

Loss Metrics

Beginning Reserves	$	107		$	108				$	111		$	118		$	120		$	129
Paid claims		(28	)		(29	)				(34	)		(34	)		(40	)		(53	)
Increase in reserves		17			28					31			27			38			44

Ending Reserves	$	96		$	107				$	108		$	111		$	118		$	120

Loan Amount
Over $550K		5	%		5	%				5	%		5	%		5	%		5	%
$400K to $550K		11			11					10			10			10			10
$250K to $400K		32			32					32			32			32			31
$100K to $250K		47			47					48			48			48			49
$100K or Less		5			5					5			5			5			5

Total		100	%		100	%				100	%		100	%		100	%		100	%

Average Primary Loan Size (in thousands)	$	209		$	208				$	207		$	206		$	205		$	203

Average Effective Loan-To-Value Ratios By Policy Year⁽²⁾

2006 and prior		39	%		39	%				39	%		36	%		38	%		39	%
2007		64	%		65	%				65	%		64	%		66	%		68	%
2008		71	%		71	%				72	%		69	%		71	%		72	%
2009		70	%		70	%				70	%		71	%		73	%		74	%
2010		77	%		77	%				77	%		77	%		80	%		81	%
2011		81	%		81	%				82	%		83	%		86	%		87	%
2012		86	%		87	%				87	%		87	%		90	%		91	%
2013		91	%		91	%				92	%		91	%		92	%		—	%
2014		93	%		—	%				—	%		—	%		—	%		—	%
Total Flow		57	%		57	%				57	%		55	%		56	%		56	%

Total Bulk		41	%		41	%				41	%		34	%		31	%		31	%

Total		54	%		54	%				53	%		51	%		50	%		50	%

All amounts presented in Canadian dollars.

⁽¹⁾	Paid claims exclude adjustments for expected recoveries related to loss reserves.

⁽²⁾

Loan amounts (including capitalized premiums) reflect interest rates at time of loan origination and estimated scheduled principal repayments since loan origination. Home price estimates based on regional home price appreciation/depreciation data from the Canadian Real Estate Association. All data used in the effective loan-to-value ratio calculation reflects conditions as of the end of the previous quarter.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(dollar amounts in millions)


Primary Insurance	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Insured loans in-force		1,481,201			1,477,063			1,474,181			1,463,148			1,459,376
Insured delinquent loans		5,405			5,070			4,980			5,454			5,820
Insured delinquency rate		0.36	%		0.34	%		0.34	%		0.37	%		0.40	%

Flow loans in-force		1,362,236			1,355,635			1,350,571			1,336,901			1,330,157
Flow delinquent loans		5,125			4,813			4,760			5,192			5,513
Flow delinquency rate		0.38	%		0.36	%		0.35	%		0.39	%		0.41	%

Bulk loans in-force		118,965			121,428			123,610			126,247			129,219
Bulk delinquent loans		280			257			220			262			307
Bulk delinquency rate		0.24	%		0.21	%		0.18	%		0.21	%		0.24	%

Loss Metrics	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013

Beginning Reserves	$	168		$	172		$	198		$	200		$	238
Paid claims		(24	)		(27	)		(39	)		(37	)		(45	)
Increase in reserves		24			17			20			30			35
Impact of changes in foreign exchange rates		3			6			(7	)		5			(28	)

Ending Reserves	$	171		$	168		$	172		$	198		$	200


	June 30, 2014						March 31, 2014						June 30, 2013
State and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
New South Wales		29	%		0.33	%		29	%		0.31	%		30	%		0.38%
Victoria		23			0.34	%		23			0.31	%		23			0.33%
Queensland		23			0.48	%		23			0.45	%		22			0.54%
Western Australia		11			0.34	%		11			0.33	%		11			0.36%
South Australia		6			0.43	%		6			0.42	%		6			0.45%
New Zealand		2			0.34	%		2			0.34	%		2			0.54%
Australian Capital Territory		3			0.13	%		3			0.11	%		3			0.10%
Tasmania		2			0.30	%		2			0.29	%		2			0.35%
Northern Territory		1			0.20	%		1			0.20	%		1			0.16%

Total		100	%		0.36	%		100	%		0.34	%		100	%		0.40%

By Policy Year
2006 and prior		33	%		0.23	%		34	%		0.22	%		36	%		0.26%
2007		8			0.72	%		9			0.69	%		10			0.82%
2008		8			0.95	%		8			0.89	%		9			0.98%
2009		9			0.66	%		10			0.64	%		11			0.73%
2010		7			0.40	%		7			0.36	%		8			0.33%
2011		8			0.39	%		8			0.34	%		9			0.27%
2012		10			0.29	%		10			0.22	%		11			0.10%
2013		11			0.10	%		11			0.05	%		6			0.01%
2014		6			—	%		3			—	%		—			— %

Total		100	%		0.36	%		100	%		0.34	%		100	%		0.40%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(Australian dollar amounts in millions)


	2014								2013
	2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims
Flow	$	25		$	30		$	55	$	41		$	39		$	44		$	59		$	183
Bulk		—			—			—		—			2			—			—			2

Total Paid Claims	$	25		$	30		$	55	$	41		$	41		$	44		$	59		$	185


Average Paid Claim (in thousands)	$	60.5		$	65.1				$	71.5		$	79.9		$	80.3		$	81.4

Average Reserve Per Delinquency (in thousands)	$	33.6		$	35.7				$	38.6		$	38.8		$	37.7		$	38.9

Loss Metrics
Beginning Reserves	$	181		$	192				$	212		$	220		$	228		$	241
Paid claims		(25	)		(30	)				(41	)		(41	)		(44	)		(59	)
Increase in reserves		25			19					21			33			36			46

Ending Reserves	$	181		$	181				$	192		$	212		$	220		$	228

Loan Amount

Over $550K		12	%		12	%				12	%		12	%		12	%		12	%
$400K to $550K		18			18					17			17			17			16
$250K to $400K		37			37					37			37			37			37
$100K to $250K		27			27					28			28			28			29
$100K or Less		6			6					6			6			6			6

Total		100	%		100	%				100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	207		$	205				$	203		$	202		$	200		$	198
Average Effective Loan-To-Value Ratios By Policy Year^{(1), (2)}

2006 and prior		38	%		40	%				41	%		43	%		47	%		48	%
2007		61	%		63	%				64	%		66	%		67	%		68	%
2008		68	%		70	%				72	%		74	%		74	%		76	%
2009		70	%		73	%				75	%		77	%		77	%		79	%
2010		76	%		78	%				80	%		83	%		83	%		85	%
2011		77	%		80	%				82	%		85	%		85	%		87	%
2012		78	%		80	%				82	%		85	%		85	%		86	%
2013		82	%		84	%				85	%		87	%		87	%		—	%
2014		87	%		—	%				—	%		—	%		—	%		—	%
Total Flow		61	%		62	%				64	%		65	%		68	%		69	%

Total Bulk		29	%		30	%				31	%		32	%		37	%		38	%
Total		58	%		59	%				60	%		61	%		65	%		66	%

All amounts presented in Australian dollars.

⁽¹⁾

Loan amounts (including capitalized premiums) reflect interest rates at time of loan origination and estimated scheduled principal repayments since loan origination. Home price estimates based on regional home price appreciation/depreciation data from RP Data. All data used in the effective loan-to-value ratio calculation reflects conditions as of the end of the previous quarter. Effective loan-to-value ratios exclude New Zealand and inward reinsurance policies.

⁽²⁾	Beginning in the third quarter of 2013, data from RP Data extended back to 1999. Previously, the data extended back to 2002. Previous periods were not re-presented for this change.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


Risk In-Force by Loan-To-Value Ratio⁽¹⁾	June 30, 2014						March 31, 2014
	Primary		Flow		Bulk		Primary		Flow		Bulk
Canada
95.01% and above	$	38,802	$	38,802	$	—	$	36,468	$	36,468	$	—
90.01% to 95.00%		26,086		26,084		2		24,835		24,833		2
80.01% to 90.00%		20,188		16,450		3,738		18,985		15,739		3,246
80.00% and below		25,013		3,188		21,825		21,888		3,032		18,856

Total Canada	$	110,089	$	84,524	$	25,565	$	102,176	$	80,072	$	22,104

Australia
95.01% and above	$	19,438	$	19,437	$	1	$	18,860	$	18,860	$	—
90.01% to 95.00%		24,467		24,459		8		23,525		23,517		8
80.01% to 90.00%		26,248		26,157		91		25,478		25,386		92
80.00% and below		30,816		23,756		7,060		30,489		23,375		7,114

Total Australia	$	100,969	$	93,809	$	7,160	$	98,352	$	91,138	$	7,214

Other Countries⁽²⁾
95.01% and above	$	618	$	618	$	—	$	629	$	629	$	—
90.01% to 95.00%		1,757		1,695		62		1,766		1,701		64
80.01% to 90.00%		1,028		757		271		1,052		772		280
80.00% and below		222		181		41		223		181		42

Total Other Countries	$	3,625	$	3,251	$	374	$	3,670	$	3,283	$	386

Amounts may not total due to rounding.

⁽¹⁾	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

⁽²⁾	Other Countries flow and primary risk in-force exclude $298 million and $282 million, respectively, of risk in-force in Europe ceded under quota share reinsurance agreements as of June 30, 2014 and March 31, 2014.

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income (Loss) and Sales—U.S. Mortgage Insurance Segment

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	144		$	137		$	281		$	142		$	137		$	141		$	134		$	554
Net investment income		11			18			29			13			18			10			19			60
Net investment gains (losses)		—			—			—			—			—			—			—			—
Insurance and investment product fees and other		1			—			1			—			1			—			1			2

Total revenues		156			155			311			155			156			151			154			616

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		62			63			125			108			123			97			84			412
Acquisition and operating expenses, net of deferrals		34			33			67			35			35			35			39			144
Amortization of deferred acquisition costs and intangibles		2			2			4			1			2			2			1			6

Total benefits and expenses		98			98			196			144			160			134			124			562

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		58			57			115			11			(4	)		17			30			54
Provision (benefit) for income taxes		19			24			43			5			(1	)		4			9			17

INCOME (LOSS) FROM CONTINUING OPERATIONS		39			33			72			6			(3	)		13			21			37

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			—			—			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	39		$	33		$	72		$	6		$	(3	)	$	13		$	21		$	37


Effective tax rate (operating income (loss))		32.4	%		42.0	%		37.2	%		45.0	%		14.0	%		22.9	%		30.1	%		31.6	%

SALES:
New Insurance Written (NIW)
Flow	$	6,100		$	3,900		$	10,000		$	4,900		$	6,400		$	6,300		$	4,700		$	22,300
Bulk		—			—			—			—			—			—			—			—

Total U.S. Mortgage Insurance NIW	$	6,100		$	3,900		$	10,000		$	4,900		$	6,400		$	6,300		$	4,700		$	22,300

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Flow New Insurance Written Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	2014										2013
	2Q					1Q					4Q					3Q					2Q					1Q
	Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)
Product
Monthly⁽¹⁾	$	5,300		59		$	3,400		58		$	4,300		62		$	5,800		60		$	5,600		58		$	4,300		56
Single		800		197			500		200			600		207			600		210			700		205			400		201

Total Flow	$	6,100				$	3,900				$	4,900				$	6,400				$	6,300				$	4,700


	Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW
FICO Scores
Over 735	$	3,600		59	%	$	2,400		61	%	$	3,100		63	%	$	4,400		69	%	$	4,500		72	%	$	3,400		72	%
680 - 735		2,000		33			1,200		31			1,500		31			1,900		29			1,600		25			1,200		26
660 - 679⁽²⁾		300		5			200		5			200		4			100		2			200		3			100		2
620 - 659		200		3			100		3			100		2			—		—			—		—			—		—
<620		—		—			—		—			—		—			—		—			—		—			—		—

Total Flow	$	6,100		100	%	$	3,900		100	%	$	4,900		100	%	$	6,400		100	%	$	6,300		100	%	$	4,700		100	%

Loan-To-Value Ratio
95.01% and above	$	100		2	%	$	100		3	%	$	200		4	%	$	200		3	%	$	200		3	%	$	100		2	%
90.01% to 95.00%		3,300		54			1,900		49			2,300		47			3,000		47			2,700		43			1,900		41
85.01% to 90.00%		1,900		31			1,300		33			1,600		33			2,200		34			2,300		37			1,700		36
85.00% and below		800		13			600		15			800		16			1,000		16			1,100		17			1,000		21

Total Flow	$	6,100		100	%	$	3,900		100	%	$	4,900		100	%	$	6,400		100	%	$	6,300		100	%	$	4,700		100	%

Origination
Purchase	$	5,100		84	%	$	3,000		77	%	$	3,800		78	%	$	4,600		72	%	$	3,800		60	%	$	2,200		47	%
Refinance		1,000		16			900		23			1,100		22			1,800		28			2,500		40			2,500		53

Total Flow	$	6,100		100	%	$	3,900		100	%	$	4,900		100	%	$	6,400		100	%	$	6,300		100	%	$	4,700		100	%

⁽¹⁾	Includes loans with annual and split payment types.

⁽²⁾	Loans with unknown FICO scores are included in the 660-679 category.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	151		$	144		$	295		$	148		$	140		$	144		$	135		$	567

New Risk Written
Flow	$	1,521		$	960		$	2,481		$	1,196		$	1,577		$	1,478		$	1,091		$	5,342
Bulk		—			—			—			—			—			—			—			—

Total Primary		1,521			960			2,481			1,196			1,577			1,478			1,091			5,342
Pool		—			—			—			—			—			—			—			—

Total New Risk Written	$	1,521		$	960		$	2,481		$	1,196		$	1,577		$	1,478		$	1,091		$	5,342


Primary Insurance In-Force	$	110,500		$	109,100					$	109,300		$	109,000		$	108,800		$	109,300

Risk In-Force
Flow	$	26,880		$	26,405					$	26,327		$	26,194		$	25,957		$	25,626
Bulk⁽¹⁾		434			442						448			456			463			485

Total Primary		27,314			26,847						26,775			26,650			26,420			26,111
Pool		163			171						177			187			196			205

Total Risk In-Force	$	27,477		$	27,018					$	26,952		$	26,837		$	26,616		$	26,316


Primary Risk In-Force Subject To Captives		7	%		8	%					9	%		10	%		11	%		12	%

Primary Risk In-Force That Is GSE Conforming		97	%		97	%					97	%		97	%		97	%		97	%

GAAP Basis Expense Ratio⁽²⁾		25	%		25	%		25	%		26	%		26	%		26	%		30	%		27	%

Adjusted Expense Ratio⁽³⁾		23	%		24	%		24	%		25	%		26	%		25	%		30	%		27	%

Flow Persistency		83	%		85	%					83	%		79	%		81	%		80	%

Gross Written Premiums Ceded To Captives/Total Direct Written Premiums		3	%		3	%					3	%		4	%		4	%		4	%

Risk To Capital Ratio⁽⁴⁾		14.6:1			18.7:1						19.5:1			22.4:1			22.4:1			24.2:1

Average Primary Loan Size (in thousands)	$	178		$	176					$	175		$	174		$	172		$	168

Estimated Savings For Loss Mitigation Activities⁽⁵⁾	$	102		$	114		$	216		$	124		$	136		$	144		$	159		$	563

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

⁽¹⁾	As of June 30, 2014, 84% of our bulk risk in-force was related to loans financed by lenders who participated in the mortgage programs sponsored by the Federal Home Loan Banks.

⁽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 written 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 U.S. mortgage insurance business maintains new business writing flexibility in all states, supported by risk to capital waivers or existing authority to write new business in all 50 states in its primary writing entity, which has maintained a risk to capital ratio below the maximum requirement since June 30, 2013. 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⁾

Loss mitigation activities are defined as rescissions, cancellations, borrower loan modifications, repayment plans, lender- and borrower-titled pre-sales, claims administration and other loan workouts. Estimated savings related to rescissions are the reduction in carried loss reserves, net of premium refunds and reinstatement of prior rescissions. Estimated savings related to loan modifications and other cure related loss mitigation actions represent the reduction in carried loss reserves. Estimated savings related to claims mitigation activities represent amounts deducted or “curtailed” from claims due to acts or omissions by the servicer with respect to the servicing of an insured loan that is not in compliance with obligations under our master policy. For non-cure related actions, including pre-sales, the estimated savings represent the difference between the full claim obligation and the actual amount paid. Loans subject to our loss mitigation actions, the results of which have been included in our reported estimated loss mitigations savings, are subject to re-default and may result in a potential claim in future periods as well as potential future loss mitigation savings depending on the resolution of the re-defaulted loan.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Loss Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow
Direct	$	148		$	178		$	326		$	198		$	216		$	197		$	253		$	864
Assumed⁽¹⁾		6			6			12			8			9			12			13			42
Ceded		(4	)		(15	)		(19	)		(8	)		(9	)		(11	)		(17	)		(45	)
Loss adjustment expenses		4			5			9			6			6			6			6			24

Total Flow		154			174			328			204			222			204			255			885
Bulk		2			2			4			2			3			6			3			14

Total Primary		156			176			332			206			225			210			258			899
Pool		1			1			2			1			1			2			1			5

Total Paid Claims	$	157		$	177		$	334		$	207		$	226		$	212		$	259		$	904


Average Paid Claim (in thousands)	$	47.2		$	43.6					$	45.3		$	45.3		$	45.0		$	44.2

Average Direct Paid Claim (in thousands)⁽²⁾	$	45.6		$	44.5					$	43.5		$	43.5		$	42.3		$	43.5

Average Reserve Per Delinquency (in thousands)
Flow	$	30.0		$	30.3					$	29.4		$	29.6		$	30.0		$	29.8
Bulk loans with established reserve		22.5			19.2						19.7			20.0			20.8			21.9
Bulk loans with no reserve⁽³⁾		—			—						—			—			—			—

Reserves:
Flow direct case	$	1,083		$	1,172					$	1,277		$	1,377		$	1,471		$	1,566
Bulk direct case		24			25						27			28			29			33
Assumed⁽¹⁾		24			29						35			39			51			57
All other⁽⁴⁾		125			129						143			143			145			164

Total Reserves	$	1,256		$	1,355					$	1,482		$	1,587		$	1,696		$	1,820


Beginning Reserves	$	1,355		$	1,482		$	1,482		$	1,587		$	1,696		$	1,820		$	2,009		$	2,009
Paid claims		(162	)		(192	)		(354	)		(215	)		(235	)		(223	)		(276	)		(949	)
Increase in reserves		63			65			128			110			126			99			87			422

Ending Reserves	$	1,256		$	1,355		$	1,256		$	1,482		$	1,587		$	1,696		$	1,820		$	1,482


Beginning Reinsurance Recoverable⁽⁵⁾	$	31		$	44		$	44		$	50		$	56		$	66		$	80		$	80
Ceded paid claims		(5	)		(15	)		(20	)		(8	)		(9	)		(11	)		(17	)		(45	)
Increase in recoverable		1			2			3			2			3			1			3			9

Ending Reinsurance Recoverable	$	27		$	31		$	27		$	44		$	50		$	56		$	66		$	44

Loss Ratio⁽⁶⁾		43	%		46	%		45	%		76	%		90	%		70	%		62	%		74	%

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⁾	Assumed is comprised of reinsurance arrangements with state governmental housing finance agencies.

⁽²⁾	Average direct paid claim excludes loss adjustment expenses, the impact of reinsurance and a negotiated servicer settlement.

⁽³⁾	Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes currently have no risk for claim.

⁽⁴⁾	Other includes loss adjustment expenses, pool and incurred but not reported reserves.

⁽⁵⁾	Reinsurance recoverable excludes ceded unearned premium recoveries and amounts for which cash proceeds have not yet been received.

⁽⁶⁾	The ratio of incurred losses to net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		40,897			43,733						49,255			52,509			55,413			59,789
Bulk loans with an established reserve		1,147			1,434						1,491			1,509			1,526			1,603
Bulk loans with no reserve⁽¹⁾		561			694						713			726			1,260			1,412

Total Number of Primary Delinquencies		42,605			45,861						51,459			54,744			58,199			62,804


Beginning Number of Primary Delinquencies		45,861			51,459			51,459			54,744			58,199			62,804			69,239			69,239
New delinquencies		10,568			12,100			22,668			13,205			14,105			13,192			15,060			55,562
Delinquency cures		(10,545	)		(13,678	)		(24,223	)		(11,974	)		(12,603	)		(13,127	)		(15,677	)		(53,381	)
Paid claims		(3,279	)		(4,020	)		(7,299	)		(4,516	)		(4,957	)		(4,670	)		(5,818	)		(19,961	)

Ending Number of Primary Delinquencies		42,605			45,861			42,605			51,459			54,744			58,199			62,804			51,459

Composition of Cures
Reported delinquent and cured-intraquarter		1,993			3,141						2,107			2,488			2,447			3,519
Number of missed payments delinquent prior to cure:
3 payments or less		5,335			7,252						6,253			6,291			6,748			8,125
4 - 11 payments		2,253			2,391						2,385			2,387			2,737			2,856
12 payments or more		964			894						1,229			1,437			1,195			1,177

Total		10,545			13,678						11,974			12,603			13,127			15,677

Primary Delinquencies by Missed Payment Status
3 payments or less		11,228			11,351						13,992			14,078			13,871			14,674
4 - 11 payments		9,913			11,463						12,410			13,134			14,503			16,804
12 payments or more		21,464			23,047						25,057			27,532			29,825			31,326

Primary Delinquencies		42,605			45,861						51,459			54,744			58,199			62,804



	June 30, 2014
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies			Direct Case Reserves⁽²⁾			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default		10,780		$	76		$	427			18	%
4 - 11 payments in default		9,601			242			398			61	%
12 payments or more in default		20,516			765			1,016			75	%

Total		40,897		$	1,083		$	1,841			59	%


	December 31, 2013
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies			Direct Case Reserves⁽²⁾			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default		13,436		$	121		$	523			23	%
4 - 11 payments in default		11,854			305			486			63	%
12 payments or more in default		23,965			851			1,178			72	%

Total		49,255		$	1,277		$	2,187			58	%

⁽¹⁾	Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes currently have no risk for claim.

⁽²⁾	Direct flow case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2014						2013
	2Q			1Q			4Q			3Q			2Q			1Q
Risk In-Force by Credit Quality⁽¹⁾
Primary by FICO Scores >679		81	%		80	%		79	%		79	%		78	%		76	%
Primary by FICO Scores 620-679		15	%		16	%		17	%		17	%		18	%		19	%
Primary by FICO Scores 575-619		3	%		3	%		3	%		3	%		3	%		4	%
Primary by FICO Scores <575		1	%		1	%		1	%		1	%		1	%		1	%

Flow by FICO Scores >679		81	%		80	%		79	%		79	%		77	%		76	%
Flow by FICO Scores 620-679		15	%		16	%		17	%		17	%		19	%		19	%
Flow by FICO Scores 575-619		3	%		3	%		3	%		3	%		3	%		4	%
Flow by FICO Scores <575		1	%		1	%		1	%		1	%		1	%		1	%

Bulk by FICO Scores >679		89	%		89	%		89	%		89	%		89	%		89	%
Bulk by FICO Scores 620-679		9	%		9	%		9	%		9	%		9	%		9	%
Bulk by FICO Scores 575-619		1	%		1	%		1	%		1	%		1	%		1	%
Bulk by FICO Scores <575		1	%		1	%		1	%		1	%		1	%		1	%

Primary A minus		3	%		3	%		3	%		3	%		3	%		4	%
Primary sub-prime⁽²⁾		2	%		2	%		2	%		2	%		3	%		3	%

Primary Loans
Primary loans in-force		620,415			618,442			624,236			627,536			633,685			649,570
Primary delinquent loans		42,605			45,861			51,459			54,744			58,199			62,804
Primary delinquency rate		6.87	%		7.42	%		8.24	%		8.72	%		9.18	%		9.67	%

Flow loans in-force		585,719			582,553			586,546			589,703			590,949			590,051
Flow delinquent loans		40,897			43,733			49,255			52,509			55,413			59,789
Flow delinquency rate		6.98	%		7.51	%		8.40	%		8.90	%		9.38	%		10.13	%

Bulk loans in-force		34,696			35,889			37,690			37,833			42,736			59,519
Bulk delinquent loans		1,708			2,128			2,204			2,235			2,786			3,015
Bulk delinquency rate		4.92	%		5.93	%		5.85	%		5.91	%		6.52	%		5.07	%

A minus and sub-prime loans in-force		36,219			37,714			39,307			41,081			42,993			44,873
A minus and sub-prime delinquent loans		8,238			8,789			10,023			10,548			10,803			11,484
A minus and sub-prime delinquency rate		22.74	%		23.30	%		25.50	%		25.68	%		25.13	%		25.59	%

Pool Loans
Pool loans in-force		10,336			10,710			11,354			11,657			12,063			12,558
Pool delinquent loans		546			575			628			670			634			674
Pool delinquency rate		5.28	%		5.37	%		5.53	%		5.75	%		5.26	%		5.37	%

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

⁽²⁾	Excludes loans classified as A minus.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	June 30, 2014									March 31, 2014									June 30, 2013
	% of Total Reserves⁽¹⁾			% of Primary Risk In-Force			Primary Delinquency Rate			% of Total Reserves⁽¹⁾			% of Primary Risk In-Force			Primary Delinquency Rate			% of Total Reserves⁽¹⁾			% of Primary Risk In-Force			Primary Delinquency Rate
By Region
Southeast⁽²⁾		30	%		20	%		9.01	%		31	%		20	%		9.85	%		34	%		21	%		12.69	%
South Central⁽³⁾		7			16			4.73	%		8			16			5.10	%		9			16			6.29	%
Northeast⁽⁴⁾		25			15			11.17	%		23			15			11.60	%		17			15			12.50	%
Pacific⁽⁵⁾		10			12			5.28	%		10			12			5.77	%		12			12			7.96	%
North Central⁽⁶⁾		10			11			5.89	%		10			11			6.59	%		11			11			8.62	%
Great Lakes⁽⁷⁾		6			10			4.90	%		6			10			5.33	%		6			9			6.78	%
New England⁽⁸⁾		5			6			6.69	%		5			6			7.15	%		4			6			8.57	%
Mid-Atlantic⁽⁹⁾		5			5			6.79	%		5			5			7.32	%		4			5			8.85	%
Plains⁽¹⁰⁾		2			5			4.50	%		2			5			4.76	%		3			5			5.93	%

Total		100	%		100	%		6.87	%		100	%		100	%		7.42	%		100	%		100	%		9.18	%


By State
California		4	%		7	%		3.42	%		4	%		7	%		3.78	%		5	%		7	%		5.39	%
Texas		3	%		7	%		4.66	%		3	%		7	%		4.89	%		3	%		7	%		5.74	%
New York		11	%		6	%		11.11	%		11	%		7	%		11.34	%		8	%		7	%		11.58	%
Florida		21	%		6	%		15.71	%		22	%		6	%		17.49	%		23	%		7	%		23.12	%
Illinois		6	%		5	%		7.82	%		7	%		5	%		8.73	%		8	%		5	%		11.95	%
New Jersey		10	%		4	%		15.45	%		9	%		4	%		16.27	%		7	%		4	%		18.05	%
Pennsylvania		4	%		4	%		8.25	%		3	%		4	%		8.67	%		3	%		4	%		9.94	%
Georgia		3	%		4	%		6.76	%		3	%		4	%		7.37	%		3	%		4	%		9.73	%
Ohio		2	%		4	%		5.44	%		2	%		4	%		6.01	%		2	%		3	%		7.29	%
North Carolina		2	%		4	%		6.04	%		2	%		4	%		6.58	%		3	%		4	%		8.47	%

⁽¹⁾	Total reserves were $1,256 million, $1,355 million and $1,696 million as of June 30, 2014, March 31, 2014 and June 30, 2013, respectively.

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

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

⁽⁴⁾	New Jersey, New York and Pennsylvania.

⁽⁵⁾	Alaska, California, Hawaii, Nevada, Oregon and Washington.

⁽⁶⁾	Illinois, Minnesota, Missouri and Wisconsin.

⁽⁷⁾	Indiana, Kentucky, Michigan and Ohio.

⁽⁸⁾	Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.

⁽⁹⁾	Delaware, Maryland, Virginia, Washington D.C. and West Virginia.

⁽¹⁰⁾	Idaho, Iowa, Kansas, Montana, Nebraska, North Dakota, South Dakota and Wyoming.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	June 30, 2014					March 31, 2014					June 30, 2013
	Primary Risk In-Force		Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate
Lender concentration (by original applicant)	$	27,314		6.87	%	$	26,847		7.42	%	$	26,420		9.18	%
Top 10 lenders		12,393		7.96	%		12,450		8.41	%		12,806		10.66	%
Top 20 lenders		14,328		7.88	%		14,337		8.32	%		14,555		10.27	%

Loan-to-value ratio
95.01% and above	$	7,107		8.91	%	$	7,267		9.24	%	$	7,480		10.93	%
90.01% to 95.00%		10,738		5.86	%		10,187		6.57	%		9,469		8.55	%
80.01% to 90.00%		9,081		6.73	%		8,999		7.30	%		9,058		9.09	%
80.00% and below		388		3.45	%		394		3.59	%		413		4.61	%

Total	$	27,314		6.87	%	$	26,847		7.42	%	$	26,420		9.18	%

Loan grade
Prime	$	25,965		5.88	%	$	25,446		6.38	%	$	24,840		8.02	%
A minus and sub-prime		1,349		22.74	%		1,401		23.30	%		1,580		25.13	%

Total	$	27,314		6.87	%	$	26,847		7.42	%	$	26,420		9.18	%

Loan type⁽¹⁾
First mortgages
Fixed rate mortgage
Flow	$	26,581		6.79	%	$	26,090		7.30	%	$	25,583		9.14	%
Bulk		419		4.72	%		427		5.66	%		446		6.30	%
Adjustable rate mortgage
Flow		299		27.80	%		315		27.84	%		374		28.96	%
Bulk		15		11.09	%		15		14.48	%		17		13.93	%
Second mortgages		—		—	%		—		—	%		—		—	%

Total	$	27,314		6.87	%	$	26,847		7.42	%	$	26,420		9.18	%

Type of documentation
Alt-A
Flow	$	432		29.50	%	$	453		30.16	%	$	532		32.16	%
Bulk		29		11.53	%		30		11.88	%		31		16.77	%
Standard⁽²⁾
Flow		26,448		6.65	%		25,952		7.15	%		25,425		8.96	%
Bulk		405		4.51	%		412		5.56	%		432		5.86	%

Total	$	27,314		6.87	%	$	26,847		7.42	%	$	26,420		9.18	%

Mortgage term
15 years and under	$	1,115		0.80	%	$	1,118		0.77	%	$	992		1.16	%
More than 15 years		26,199		7.31	%		25,729		7.91	%		25,428		9.74	%

Total	$	27,314		6.87	%	$	26,847		7.42	%	$	26,420		9.18	%

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	June 30, 2014
Policy Year	Average Rate⁽¹⁾			% of Total Reserves⁽²⁾			Primary Insurance In-Force			% of Total			Primary Risk In-Force		% of Total			Deliquency Rate
2003 and prior		6.41	%		7.4	%	$	3,962			3.6	%	$	903		3.3	%		15.27	%
2004		5.74	%		5.2			2,631			2.4			628		2.3			12.36	%
2005		5.71	%		12.4			5,154			4.6			1,372		5.0			14.33	%
2006		5.96	%		17.8			7,857			7.1			1,992		7.3			13.87	%
2007		5.89	%		37.4			18,641			16.9			4,670		17.1			13.23	%
2008		5.42	%		17.7			16,547			15.0			4,175		15.3			7.38	%
2009		4.98	%		0.6			2,996			2.7			672		2.5			1.76	%
2010		4.69	%		0.6			3,950			3.6			924		3.4			1.10	%
2011		4.49	%		0.4			5,305			4.8			1,310		4.8			0.85	%
2012		3.78	%		0.3			12,812			11.6			3,157		11.5			0.28	%
2013		3.95	%		0.2			20,775			18.8			5,048		18.5			0.16	%
2014		4.48	%		—			9,881			8.9			2,463		9.0			0.03	%

Total		5.08	%		100.0	%	$	110,511			100.0	%	$	27,314		100.0	%		6.87	%


	June 30, 2014						March 31, 2014
Occupancy and Property Type	% of Primary Risk In-Force			Deliquency Rate			% of Primary Risk In-Force			Deliquency Rate
Occupancy Status
Primary residence		94.8	%		6.79	%		94.6	%		7.34	%
Second home		2.7			7.60	%		2.8			8.09	%
Non-owner occupied		2.5			8.14	%		2.6			8.60	%

Total		100.0	%		6.87	%		100.0	%		7.42	%

Property Type
Single family detached		88.5	%		6.61	%		88.2	%		7.12	%
Condominium and co-operative		9.9			7.86	%		10.1			8.59	%
Multi-family and other		1.6			13.86	%		1.7			14.81	%

Total		100.0	%		6.87	%		100.0	%		7.42	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $1,256 million as of June 30, 2014.

Corporate and Other Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Loss—Corporate and Other Division

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	200		$	176		$	376		$	159		$	160		$	156		$	166		$	641
Net investment income		56			53			109			67			53			68			69			257
Net investment gains (losses)		(3	)		(17	)		(20	)		19			(24	)		(9	)		(52	)		(66	)
Insurance and investment product fees and other		53			54			107			55			56			53			100			264

Total revenues		306			266			572			300			245			268			283			1,096

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		62			54			116			48			49			51			43			191
Interest credited		29			29			58			30			28			29			32			119
Acquisition and operating expenses, net of deferrals		155			135			290			135			162			140			179			616
Amortization of deferred acquisition costs and intangibles		40			42			82			35			28			38			18			119
Interest expense		91			98			189			89			90			89			94			362

Total benefits and expenses		377			358			735			337			357			347			366			1,407

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(71	)		(92	)		(163	)		(37	)		(112	)		(79	)		(83	)		(311	)
Benefit for income taxes		(23	)		(50	)		(73	)		(14	)		(22	)		(28	)		(26	)		(90	)

LOSS FROM CONTINUING OPERATIONS		(48	)		(42	)		(90	)		(23	)		(90	)		(51	)		(57	)		(221	)
Income (loss) from discontinued operations, net of taxes		—			—			—			—			2			6			(20	)		(12	)

NET LOSS		(48	)		(42	)		(90	)		(23	)		(88	)		(45	)		(77	)		(233	)
ADJUSTMENTS TO NET LOSS:
Net investment (gains) losses, net		1			10			11			(10	)		11			—			21			22
(Gains) losses on early extinguishment of debt, net		—			—			—			—			20			—			—			20
Expenses related to restructuring, net		—			—			—			—			—			3			—			3
(Income) loss from discontinued operations, net of taxes		—			—			—			—			(2	)		(6	)		20			12

NET OPERATING LOSS	$	(47	)	$	(32	)	$	(79	)	$	(33	)	$	(59	)	$	(48	)	$	(36	)	$	(176	)


Effective tax rate (operating loss)		33.0	%		57.5	%		45.9	%		37.5	%		8.1	%		35.9	%		28.2	%		27.4	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Three months ended June 30, 2014	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	199		$	1		$	—		$	200
Net investment income		22			33			1			56
Net investment gains (losses)		—			3			(6	)		(3	)
Insurance and investment product fees and other		2			52			(1	)		53

Total revenues		223			89			(6	)		306

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		56			6			—			62
Interest credited		—			29			—			29
Acquisition and operating expenses, net of deferrals		126			20			9			155
Amortization of deferred acquisition costs and intangibles		30			10			—			40
Interest expense		9			1			81			91

Total benefits and expenses		221			66			90			377

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		2			23			(96	)		(71	)
Provision (benefit) for income taxes		—			5			(28	)		(23	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		2			18			(68	)		(48	)

NET INCOME (LOSS)		2			18			(68	)		(48	)

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net		—			(3	)		4			1

NET OPERATING INCOME (LOSS)	$	2		$	15		$	(64	)	$	(47	)


Effective tax rate (operating income (loss))		6.8	%		16.1	%		28.8	%		33.0	%
Three months ended June 30, 2013	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	154		$	2		$	—		$	156
Net investment income		31			34			3			68
Net investment gains (losses)		16			(20	)		(5	)		(9	)
Insurance and investment product fees and other		1			53			(1	)		53

Total revenues		202			69			(3	)		268

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		41			10			—			51
Interest credited		—			29			—			29
Acquisition and operating expenses, net of deferrals		110			22			8			140
Amortization of deferred acquisition costs and intangibles		26			8			4			38
Interest expense		11			1			77			89

Total benefits and expenses		188			70			89			347

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		14			(1	)		(92	)		(79	)
Provision (benefit) for income taxes		5			—			(33	)		(28	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		9			(1	)		(59	)		(51	)
Loss from discontinued operations, net of taxes		—			—			6			6

NET INCOME (LOSS)		9			(1	)		(53	)		(45	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(11	)		7			4			—
Expenses related to restructuring, net		3			—			—			3
(Income) loss from discontinued operations, net of taxes		—			—			(6	)		(6	)

NET OPERATING INCOME (LOSS)	$	1		$	6		$	(55	)	$	(48	)


Effective tax rate (operating income (loss))		38.7	%		40.9	%		36.7	%		35.9	%

⁽¹⁾	Includes inter-segment eliminations and non-core products.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Six months ended June 30, 2014	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	374		$	2		$	—		$	376
Net investment income		52			65			(8	)		109
Net investment gains (losses)		1			(10	)		(11	)		(20	)
Insurance and investment product fees and other		3			105			(1	)		107

Total revenues		430			162			(20	)		572

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		102			14			—			116
Interest credited		—			58			—			58
Acquisition and operating expenses, net of deferrals		235			40			15			290
Amortization of deferred acquisition costs and intangibles		60			21			1			82
Interest expense		24			1			164			189

Total benefits and expenses		421			134			180			735

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		9			28			(200	)		(163	)
Provision (benefit) for income taxes		(1	)		5			(77	)		(73	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		10			23			(123	)		(90	)

NET INCOME (LOSS)		10			23			(123	)		(90	)

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net		(1	)		4			8			11

NET OPERATING INCOME (LOSS)	$	9		$	27		$	(115	)	$	(79	)


Effective tax rate (operating income (loss))		-13.1	%		20.2	%		38.7	%		45.9	%
Six months ended June 30, 2013	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	319		$	3		$	—		$	322
Net investment income		64			68			5			137
Net investment gains (losses)		22			(68	)		(15	)		(61	)
Insurance and investment product fees and other		2			109			42			153

Total revenues		407			112			32			551

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		80			14			—			94
Interest credited		—			61			—			61
Acquisition and operating expenses, net of deferrals		220			42			57			319
Amortization of deferred acquisition costs and intangibles		54			(5	)		7			56
Interest expense		25			1			157			183

Total benefits and expenses		379			113			221			713

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		28			(1	)		(189	)		(162	)
Provision (benefit) for income taxes		9			3			(66	)		(54	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		19			(4	)		(123	)		(108	)
Income (loss) from discontinued operations, net of taxes		—			—			(14	)		(14	)

NET INCOME (LOSS)		19			(4	)		(137	)		(122	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(15	)		26			10			21
Expenses related to restructuring, net		3			—			—			3
(Income) loss from discontinued operations, net of taxes		—			—			14			14

NET OPERATING INCOME (LOSS)	$	7		$	22		$	(113	)	$	(84	)


Effective tax rate (operating income (loss))		28.2	%		43.8	%		35.1	%		32.8	%

⁽¹⁾	Includes inter-segment eliminations and non-core products.

International Protection Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income and Sales—International Protection Segment

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	199		$	175		$	374		$	158		$	159		$	154		$	165		$	636
Net investment income		22			30			52			29			26			31			33			119
Net investment gains (losses)		—			1			1			4			1			16			6			27
Insurance and investment product fees and other		2			1			3			1			1			1			1			4

Total revenues		223			207			430			192			187			202			205			786

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		56			46			102			39			40			41			39			159
Interest credited		—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		126			109			235			107			106			110			110			433
Amortization of deferred acquisition costs and intangibles		30			30			60			27			25			26			28			106
Interest expense		9			15			24			8			9			11			14			42

Total benefits and expenses		221			200			421			181			180			188			191			740

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		2			7			9			11			7			14			14			46
Provision (benefit) for income taxes		—			(1	)		(1	)		(5	)		3			5			4			7

INCOME FROM CONTINUING OPERATIONS		2			8			10			16			4			9			10			39

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			(1	)		(1	)		(3	)		—			(11	)		(4	)		(18	)
Expenses related to restructuring, net		—			—			—			—			—			3			—			3

NET OPERATING INCOME⁽¹⁾	$	2		$	7		$	9		$	13		$	4		$	1		$	6		$	24



Effective tax rate (operating income)		6.8	%		-22.3	%		-13.1	%		-95.6	%		36.7	%		38.7	%		26.1	%		-5.1	%

Net Premiums Written
Northern Europe	$	104		$	115		$	219		$	104		$	113		$	106		$	106		$	429
Southern Europe		86			108			194			72			71			74			78			295
Structured Deals⁽²⁾		41			30			71			37			37			49			28			151
New Markets		15			11			26			9			9			14			21			53

Pre-Deposit Accounting Basis⁽³⁾		246			264			510			222			230			243			233			928

Deposit Accounting Adjustments		47			68			115			70			76			94			80			320

Total⁽⁴⁾	$	199		$	196		$	395		$	152		$	154		$	149		$	153		$	608


Loss Ratio		28	%		26	%		27	%		25	%		25	%		26	%		24	%		25	%

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⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Protection segment was $2 million and $9 million for the three and six months ended June 30, 2014, respectively.

⁽²⁾	Structured deals represent in-force blocks of business acquired through reinsurance arrangements and ongoing reciprocal arrangements in place with certain clients.

⁽³⁾

This business has reinsurance agreements that do not qualify for risk transfer under GAAP. This analysis shows the net premiums written activity as if these reinsurance agreements, except for the reciprocal arrangements, were accounted for as reinsurance accounting (“pre-deposit accounting basis”) and not as deposit accounting. While this is a non-GAAP measure, management believes that “net premiums written on a pre-deposit accounting basis” represent an economic view of written premiums and enhances the understanding of the underlying performance of the business. However, net premiums written on a pre-deposit accounting basis is not a substitute for net premiums written determined in accordance with GAAP.

⁽⁴⁾	Net premiums written adjusted for foreign exchange as compared to the prior year period for the International Protection segment were $188 million and $381 million for the three and six months ended June 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income (Pre-Deposit Accounting Basis)—International Protection Segment

(amounts in millions)


	2Q 2014									1Q 2014									Total 2014
	Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis
REVENUES:
Premiums	$	199		$	41		$	240		$	175		$	43		$	218		$	374			84		$	458
Net investment income		22			(7	)		15			30			(10	)		20			52			(17	)		35
Net investment gains (losses)		—			—			—			1			—			1			1			—			1
Insurance and investment product fees and other		2			—			2			1			—			1			3			—			3

Total revenues		223			34			257			207			33			240			430			67			497

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		56			20			76			46			20			66			102			40			142
Interest credited		—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		126			8			134			109			9			118			235			17			252
Amortization of deferred acquisition costs and intangibles		30			9			39			30			10			40			60			19			79
Interest expense		9			(3	)		6			15			(6	)		9			24			(9	)		15

Total benefits and expenses		221			34			255			200			33			233			421			67			488

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		2			—			2			7			—			7			9			—			9
Provision (benefit) for income taxes		—			—			—			(1	)		—			(1	)		(1	)		—			(1	)

INCOME FROM CONTINUING OPERATIONS		2			—			2			8			—			8			10			—			10

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			—			—			(1	)		—			(1	)		(1	)		—			(1	)

NET OPERATING INCOME⁽¹⁾	$	2		$	—		$	2		$	7		$	—		$	7		$	9		$	—		$	9

Effective tax rate (operating income)		6.8	%					6.8	%		-22.3	%					-22.3	%		-13.1	%					-13.1	%

Other Metrics:
Premiums	$	199		$	41		$	240		$	175		$	43		$	218			374		$	84		$	458
Benefits and other changes in policy reserves		56			20			76			46			20			66			102			40			142
Commissions⁽²⁾		96			8			104			81			9			90			177			17			194

Margin before profit sharing		47			13			60			48			14			62			95			27			122
Profit share⁽²⁾		18			10			28			19			9			28			37			19			56

Underwriting profit⁽³⁾	$	29		$	3		$	32		$	29		$	5		$	34		$	58		$	8		$	66


Loss Ratio		28	%					32	%		26	%					30	%		27	%					31	%

Underwriting Margin⁽³⁾		15	%					13	%		17	%					16	%		16	%					14	%

Combined Ratio⁽⁴⁾		107	%					104	%		106	%					103	%		106	%					103	%

This page is provided as supplemental analysis related to the lifestyle protection insurance business. This business has reinsurance agreements that do not qualify for risk transfer under GAAP. This analysis shows the income statement activity as if these reinsurance agreements, except for the reciprocal arrangements, were accounted for as reinsurance accounting (“pre-deposit accounting basis”) and not as deposit accounting. There is no impact on net income available to Genworth Financial, Inc.’s common stockholders or to segment net operating income. While “pre-deposit accounting basis” is a non-GAAP measure, management believes that it represents an economic view of the underlying performance of the business. However, pre-deposit accounting basis is not a substitute for income statement activity determined in accordance with GAAP.

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

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Protection segment was $2 million and $9 million for the three and six months ended June 30, 2014, respectively.

⁽²⁾	Commissions include commissions which are included above in acquisition and operating expenses, net of deferrals, and amortization of DAC.

⁽³⁾	The underwriting margin is calculated as underwriting profit divided by net earned premiums.

⁽⁴⁾	The combined ratio is calculated as benefits and other changes in policy reserves, commissions (including amortization of DAC), profit share and other operating expenses divided by net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income (Pre-Deposit Accounting Basis)—International Protection Segment

(amounts in millions)


	4Q 2013									3Q 2013									2Q 2013									1Q 2013									Total 2013
	Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis
REVENUES:
Premiums	$	158		$	43		$	201		$	159		$	47		$	206		$	154		$	52		$	206		$	165		$	62		$	227		$	636		$	204		$	840
Net investment income		29			(8	)		21			26			(6	)		20			31			(9	)		22			33			(11	)		22			119			(34	)		85
Net investment gains (losses)		4			—			4			1			—			1			16			—			16			6			—			6			27			—			27
Insurance and investment product fees and other		1			—			1			1			—			1			1			—			1			1			—			1			4			—			4

Total revenues		192			35			227			187			41			228			202			43			245			205			51			256			786			170			956

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		39			15			54			40			22			62			41			21			62			39			33			72			159			91			250
Interest credited		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		107			11			118			106			6			112			110			13			123			110			9			119			433			39			472
Amortization of deferred acquisition costs and intangibles		27			8			35			25			13			38			26			11			37			28			14			42			106			46			152
Interest expense		8			1			9			9			—			9			11			(2	)		9			14			(5	)		9			42			(6	)		36

Total benefits and expenses		181			35			216			180			41			221			188			43			231			191			51			242			740			170			910


INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		11			—			11			7			—			7			14			—			14			14			—			14			46			—			46
Provision (benefit) for income taxes		(5	)		—			(5	)		3			—			3			5			—			5			4			—			4			7			—			7

INCOME FROM CONTINUING OPERATIONS		16			—			16			4			—			4			9			—			9			10			—			10			39			—			39

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(3	)		—			(3	)		—			—			—			(11	)		—			(11	)		(4	)		—			(4	)		(18	)		—			(18	)
Expenses related to restructuring, net		—			—			—			—			—			—			3			—			3			—			—			—			3			—			3

NET OPERATING INCOME	$	13		$	—		$	13		$	4		$	—		$	4		$	1		$	—		$	1		$	6		$	—		$	6		$	24		$	—		$	24

Effective tax rate (operating income)		-95.6	%					-95.6	%		36.7	%					36.7	%		38.7	%					38.7	%		26.1	%					26.1	%		-5.1	%					-5.1	%

Other Metrics:
Premiums	$	158		$	43		$	201		$	159		$	47		$	206		$	154		$	52		$	206		$	165		$	62		$	227		$	636		$	204		$	840
Benefits and other changes in policy reserves		39			15			54			40			22			62			41			21			62			39			33			72			159			91			250
Commissions⁽¹⁾		74			10			84			75			12			87			75			11			86			80			12			92			304			45			349

Margin before profit sharing		45			18			63			44			13			57			38			20			58			46			17			63			173			68			241
Profit share⁽¹⁾		20			10			30			18			8			26			18			13			31			18			11			29			74			42			116

Underwriting profit⁽²⁾	$	25		$	8		$	33		$	26		$	5		$	31		$	20		$	7		$	27		$	28		$	6		$	34		$	99		$	26		$	125


Loss Ratio		25	%					27	%		25	%					30	%		26	%					30	%		24	%					32	%		25	%					30	%

Underwriting Margin⁽²⁾		16	%					16	%		16	%					15	%		13	%					13	%		17	%					15	%		16	%					15	%

Combined Ratio⁽³⁾		109	%					103	%		108	%					103	%		115	%					108	%		107	%					103	%		110	%					104	%

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

⁽¹⁾	Commissions include commissions which are included above in acquisition and operating expenses, net of deferrals, and amortization of DAC.

⁽²⁾	The underwriting margin is calculated as underwriting profit divided by net earned premiums.

⁽³⁾	The combined ratio is calculated as benefits and other changes in policy reserves, commissions (including amortization of DAC), profit share and other operating expenses divided by net earned premiums.

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Income—Runoff Segment

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	1		$	1		$	2		$	1		$	1		$	2		$	1		$	5
Net investment income		33			32			65			38			33			34			34			139
Net investment gains (losses)		3			(13	)		(10	)		24			(14	)		(20	)		(48	)		(58	)
Insurance and investment product fees and other		52			53			105			54			53			53			56			216

Total revenues		89			73			162			117			73			69			43			302

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		6			8			14			9			9			10			4			32
Interest credited		29			29			58			30			28			29			32			119
Acquisition and operating expenses, net of deferrals		20			20			40			21			18			22			20			81
Amortization of deferred acquisition costs and intangibles		10			11			21			9			2			8			(13	)		6
Interest expense		1			—			1			1			—			1			—			2

Total benefits and expenses		66			68			134			70			57			70			43			240

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		23			5			28			47			16			(1	)		—			62
Provision (benefit) for income taxes		5			—			5			15			(5	)		—			3			13

INCOME (LOSS) FROM CONTINUING OPERATIONS		18			5			23			32			21			(1	)		(3	)		49

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(3	)		7			4			(13	)		4			7			19			17

NET OPERATING INCOME	$	15		$	12		$	27		$	19		$	25		$	6		$	16		$	66


Effective tax rate (operating income)		16.1	%		25.1	%		20.2	%		28.1	%		-6.9	%		40.9	%		44.8	%		25.5	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Selected Operating Performance Measures—Runoff Segment

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Variable Annuities—Income Distribution Series
Account value, beginning of the period	$	5,990		$	6,061		$	6,061		$	6,044		$	5,983		$	6,202		$	6,141		$	6,141
Deposits		13			16			29			19			19			18			20			76
Surrenders, benefits and product charges		(210	)		(198	)		(408	)		(212	)		(186	)		(183	)		(173	)		(754	)

Net flows		(197	)		(182	)		(379	)		(193	)		(167	)		(165	)		(153	)		(678	)
Interest credited and investment performance		191			111			302			210			228			(54	)		214			598

Account value, end of the period		5,984			5,990			5,984			6,061			6,044			5,983			6,202			6,061

Traditional Variable Annuities
Account value, net of reinsurance, beginning of the period		1,598			1,643			1,643			1,620			1,601			1,674			1,662			1,662
Deposits		4			3			7			4			4			2			3			13
Surrenders, benefits and product charges		(80	)		(78	)		(158	)		(71	)		(67	)		(80	)		(81	)		(299	)

Net flows		(76	)		(75	)		(151	)		(67	)		(63	)		(78	)		(78	)		(286	)
Interest credited and investment performance		61			30			91			90			82			5			90			267

Account value, net of reinsurance, end of the period		1,583			1,598			1,583			1,643			1,620			1,601			1,674			1,643

Variable Life Insurance
Account value, beginning of the period		313			316			316			302			293			301			292			292
Deposits		2			2			4			3			2			2			2			9
Surrenders, benefits and product charges		(8	)		(11	)		(19	)		(9	)		(10	)		(11	)		(9	)		(39	)

Net flows		(6	)		(9	)		(15	)		(6	)		(8	)		(9	)		(7	)		(30	)
Interest credited and investment performance		10			6			16			20			17			1			16			54

Account value, end of the period		317			313			317			316			302			293			301			316

Total	$	7,884		$	7,901		$	7,884		$	8,020		$	7,966		$	7,877		$	8,177		$	8,020


Guaranteed Investment Contracts, Funding Agreements Backing Notes and Funding Agreements
Account value, beginning of the period	$	891		$	896		$	896		$	1,036		$	1,077		$	1,970		$	2,153		$	2,153
Surrenders and benefits		(225	)		(7	)		(232	)		(142	)		(43	)		(900	)		(167	)		(1,252	)

Net flows		(225	)		(7	)		(232	)		(142	)		(43	)		(900	)		(167	)		(1,252	)
Interest credited		1			2			3			2			2			7			15			26
Foreign currency translation		—			—			—			—			—			—			(31	)		(31	)

Account value, end of the period	$	667		$	891		$	667		$	896		$	1,036		$	1,077		$	1,970		$	896

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		1			(9	)		(8	)		—			(6	)		3			2			(1	)
Net investment gains (losses)		(6	)		(5	)		(11	)		(9	)		(11	)		(5	)		(10	)		(35	)
Insurance and investment product fees and other		(1	)		—			(1	)		—			2			(1	)		43			44

Total revenues		(6	)		(14	)		(20	)		(9	)		(15	)		(3	)		35			8

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			—			—			—			—			—			—			—
Interest credited		—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		9			6			15			7			38			8			49			102
Amortization of deferred acquisition costs and intangibles		—			1			1			(1	)		1			4			3			7
Interest expense		81			83			164			80			81			77			80			318

Total benefits and expenses		90			90			180			86			120			89			132			427

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(96	)		(104	)		(200	)		(95	)		(135	)		(92	)		(97	)		(419	)
Benefit for income taxes		(28	)		(49	)		(77	)		(24	)		(20	)		(33	)		(33	)		(110	)

LOSS FROM CONTINUING OPERATIONS		(68	)		(55	)		(123	)		(71	)		(115	)		(59	)		(64	)		(309	)
Income (loss) from discontinued operations, net of taxes⁽²⁾		—			—			—			—			2			6			(20	)		(12	)

NET LOSS		(68	)		(55	)		(123	)		(71	)		(113	)		(53	)		(84	)		(321	)

ADJUSTMENTS TO NET LOSS:
Net investment (gains) losses, net		4			4			8			6			7			4			6			23
(Gains) losses on early extinguishment of debt, net		—			—			—			—			20			—			—			20
(Income) loss from discontinued operations, net of taxes		—			—			—			—			(2	)		(6	)		20			12

NET OPERATING LOSS	$	(64	)	$	(51	)	$	(115	)	$	(65	)	$	(88	)	$	(55	)	$	(58	)	$	(266	)


Effective tax rate (operating loss)		28.8	%		47.8	%		38.7	%		24.8	%		6.3	%		36.7	%		33.5	%		24.9	%

⁽¹⁾	Includes inter-segment eliminations and non-core products.

⁽²⁾	Operating results associated with discontinued operations related to the wealth management business prior to the sale on August 30, 2013.

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Investments Summary

(amounts in millions)


		June 30, 2014					March 31, 2014					December 31, 2013					September 30, 2013					June 30, 2013
		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		$	36,726		48	%	$	35,526		48	%	$	34,666		48	%	$	35,503		49	%	$	34,486		48	%
Private fixed maturity securities			11,608		15			11,125		15			10,563		15			10,277		14			10,368		14
Residential mortgage-backed securities⁽¹⁾			5,057		7			4,945		7			5,069		7			5,187		7			5,282		7
Commercial mortgage-backed securities			2,630		3			2,656		4			2,639		4			2,520		4			2,533		4
Other asset-backed securities			3,700		5			3,343		4			3,119		4			2,992		4			2,655		4
Tax-exempt			353		—			317		—			295		—			263		—			262		—
Non-investment grade fixed maturity securities			2,286		3			2,332		3			2,278		3			2,344		3			2,422		3
Equity securities:
Common stocks and mutual funds			227		—			260		—			258		—			303		1			332		1
Preferred stocks			93		—			89		—			83		—			76		—			79		—
Commercial mortgage loans			5,986		8			5,894		8			5,899		8			5,858		8			5,831		8
Restricted commercial mortgage loans related to securitization entities			217		—			227		—			233		—			290		—			309		—
Policy loans			1,514		2			1,438		2			1,434		2			1,668		2			1,671		2
Cash, cash equivalents and short-term investments			4,220		5			4,492		6			4,434		6			3,767		5			3,777		5
Securities lending			277		—			261		—			187		—			154		—			163		—
Other invested assets:	Limited partnerships		263		1			267		—			282		1			297		1			318		1
	Derivatives:
	Long-term care (LTC) forward starting swap—cash flow		197		—			137		—			79		—			147		—			166		—
	Other cash flow		20		—			30		—			46		—			3		—			3		—
	Fair value		—		—			—		—			1		—			1		—			1		—
	Equity index options—non-qualified		4		—			11		—			13		—			6		—			13		—
	Other non—qualified		395		1			352		1			332		1			370		1			397		1
	Trading portfolio		226		—			247		—			239		—			278		—			287		—
	Counterparty collateral		417		1			355		1			199		—			272		—			377		1
	Restricted other invested assets related to securitization entities		404		1			398		1			391		1			392		1			392		1
	Other		82		—			83		—			88		—			85		—			87		—

Total invested assets and cash		$	76,902		100	%	$	74,785		100	%	$	72,827		100	%	$	73,053		100	%	$	72,211		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	15,552		33	%	$	15,338		34	%	$	15,148		34	%	$	15,859		35	%	$	15,928		36	%
AA			5,056		11			4,759		10			4,627		11			4,776		11			4,204		10
A			13,470		29			12,920		29			12,488		28			12,674		28			12,530		28
BBB			11,162		24			10,847		24			10,720		24			10,426		23			10,044		23
BB			1,232		3			1,251		3			1,148		3			1,134		3			1,096		3
B			82		—			87		—			132		—			128		—			145		—
CCC and lower			113		—			114		—			112		—			130		—			182		—

Total public fixed maturity securities		$	46,667		100	%	$	45,316		100	%	$	44,375		100	%	$	45,127		100	%	$	44,129		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	1,636		10	%	$	1,554		10	%	$	1,483		11	%	$	1,453		10	%	$	1,326		10	%
AA			1,800		12			1,661		11			1,570		11			1,551		11			1,499		11
A			5,027		32			4,593		31			4,331		30			4,247		31			4,198		30
BBB			6,371		40			6,240		42			5,984		42			5,756		41			5,857		42
BB			723		5			740		5			736		5			798		6			819		6
B			57		—			57		—			56		—			63		—			83		—
CCC and lower			79		1			83		1			94		1			91		1			97		1

Total private fixed maturity securities		$	15,693		100	%	$	14,928		100	%	$	14,254		100	%	$	13,959		100	%	$	13,879		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.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Fixed Maturity Securities Summary

(amounts in millions)


	June 30, 2014					March 31, 2014					December 31, 2013					September 30, 2013					June 30, 2013
	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	$	5,483		9	%	$	5,214		9	%	$	4,810		8	%	$	5,325		9	%	$	5,048		9	%
Tax-exempt		353		1			317		—			295		—			263		—			262		—
Foreign government		2,132		3			2,153		4			2,146		4			2,232		4			2,247		4
U.S. corporate		26,847		43			26,060		43			25,035		43			24,782		42			24,742		43
Foreign corporate		15,749		25			15,141		25			15,071		26			15,276		26			14,618		25
Residential mortgage-backed securities		5,212		8			5,102		8			5,225		9			5,397		9			5,590		10
Commercial mortgage-backed securities		2,845		5			2,881		5			2,898		5			2,790		5			2,814		5
Other asset-backed securities		3,739		6			3,376		6			3,149		5			3,021		5			2,687		4

Total fixed maturity securities	$	62,360		100	%	$	60,244		100	%	$	58,629		100	%	$	59,086		100	%	$	58,008		100	%

Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	7,908		19	%	$	7,506		19	%	$	7,382		19	%	$	7,344		19	%	$	7,167		19	%
Utilities and energy		9,890		24			9,494		24			9,213		24			9,084		24			9,097		24
Consumer—non-cyclical		4,825		12			4,837		12			4,669		12			4,722		12			4,674		12
Consumer—cyclical		2,408		6			2,337		6			2,282		6			2,185		6			2,157		6
Capital goods		2,402		6			2,335		6			2,238		6			2,276		6			2,332		6
Industrial		2,885		7			2,734		7			2,595		7			2,592		7			2,507		7
Technology and communications		3,066		8			2,978		8			2,867		8			2,928		8			2,864		8
Transportation		1,702		4			1,653		4			1,595		4			1,593		4			1,550		4
Other		5,699		14			5,469		14			5,471		14			5,534		14			5,245		14

Subtotal		40,785		100	%		39,343		100	%		38,312		100	%		38,258		100	%		37,593		100	%

Non-Investment Grade:
Finance and insurance		306		17	%		332		18	%		337		19	%		376		21	%		376		21	%
Utilities and energy		338		19			335		18			297		16			338		19			332		19
Consumer—non-cyclical		217		12			229		12			194		11			170		9			186		11
Consumer—cyclical		55		3			60		3			71		4			107		6			107		6
Capital goods		297		16			291		15			295		16			272		15			250		14
Industrial		252		14			254		14			267		15			243		14			236		13
Technology and communications		318		17			330		18			316		18			257		14			234		13
Transportation		16		1			15		1			5		—			26		1			29		2
Other		12		1			12		1			12		1			11		1			17		1

Subtotal		1,811		100	%		1,858		100	%		1,794		100	%		1,800		100	%		1,767		100	%

Total	$	42,596		100	%	$	41,201		100	%	$	40,106		100	%	$	40,058		100	%	$	39,360		100	%

Fixed Maturity Securities—Contractual Maturity Dates:

Due in one year or less	$	2,784		4	%	$	3,118		5	%	$	2,974		5	%	$	2,772		5	%	$	2,670		4	%
Due after one year through five years		10,701		17			10,257		17			10,187		17			10,563		18			10,313		18
Due after five years through ten years		13,401		22			12,915		21			12,526		22			12,570		21			11,880		20
Due after ten years		23,678		38			22,595		38			21,670		37			21,973		37			22,054		38

Subtotal		50,564		81			48,885		81			47,357		81			47,878		81			46,917		80
Mortgage and asset-backed securities		11,796		19			11,359		19			11,272		19			11,208		19			11,091		20

Total fixed maturity securities	$	62,360		100	%	$	60,244		100	%	$	58,629		100	%	$	59,086		100	%	$	58,008		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Commercial Mortgage Loans Summary

(amounts in millions)


	June 30, 2014						March 31, 2014						December 31, 2013						September 30, 2013						June 30, 2013
	Carrying Amount			% of Total			Carrying Amount			% of Total			Carrying Amount			% of Total			Carrying Amount			% of Total			Carrying Amount			% of Total
Geographic Region
Pacific	$	1,607			27	%	$	1,601			27	%	$	1,590			27	%	$	1,624			28	%	$	1,621			28	%
South Atlantic		1,565			26			1,526			26			1,535			26			1,558			26			1,515			26
Middle Atlantic		812			13			823			14			828			14			792			13			780			13
Mountain		514			9			494			8			478			8			462			8			466			8
East North Central		409			7			399			7			404			7			384			7			389			7
West North Central		366			6			370			6			377			6			366			6			368			6
New England		350			6			335			6			337			6			327			6			340			6
West South Central		254			4			238			4			241			4			237			4			247			4
East South Central		136			2			138			2			142			2			143			2			142			2

Subtotal		6,013			100	%		5,924			100	%		5,932			100	%		5,893			100	%		5,868			100	%

Allowance for losses		(27	)					(30	)					(33	)					(36	)					(38	)
Unamortized fees and costs		—						—						—						1						1

Total	$	5,986					$	5,894					$	5,899					$	5,858					$	5,831

Property Type
Retail	$	2,162			36	%	$	2,103			36	%	$	2,073			35	%	$	2,005			34	%	$	2,000			34	%
Industrial		1,585			26			1,580			27			1,581			27			1,571			27			1,565			27
Office		1,533			26			1,509			25			1,558			26			1,610			27			1,585			27
Apartments		480			8			493			8			491			8			473			8			490			8
Mixed use/other		253			4			239			4			229			4			234			4			228			4

Subtotal		6,013			100	%		5,924			100	%		5,932			100	%		5,893			100	%		5,868			100	%

Allowance for losses		(27	)					(30	)					(33	)					(36	)					(38	)
Unamortized fees and costs		—						—						—						1						1

Total	$	5,986					$	5,894					$	5,899					$	5,858					$	5,831

Allowance for Losses on Commercial Mortgage Loans
Beginning balance	$	30					$	33					$	36					$	38					$	40
Release		(3	)					(3	)					(3	)					(2	)					(2	)

Ending balance	$	27					$	30					$	33					$	36					$	38

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Commercial Mortgage Loans Summary

(amounts in millions)


	June 30, 2014					March 31, 2014					December 31, 2013					September 30, 2013					June 30, 2013
Loan Size	Principal Balance		% of Total			Principal Balance		% of Total			Principal Balance		% of Total			Principal Balance		% of Total			Principal Balance		% of Total
Under $5 million	$	2,415		40	%	$	2,405		41	%	$	2,435		41	%	$	2,393		41	%	$	2,384		41	%
$5 million but less than $10 million		1,687		28			1,645		28			1,638		28			1,594		27			1,594		27
$10 million but less than $20 million		1,380		23			1,376		23			1,358		23			1,315		22			1,321		23
$20 million but less than $30 million		232		4			204		3			205		3			227		4			204		3
$30 million and over		299		5			294		5			296		5			364		6			365		6

Total	$	6,013		100	%	$	5,924		100	%	$	5,932		100	%	$	5,893		100	%	$	5,868		100	%

Commercial Mortgage Loan Information by Vintage as of June 30, 2014

(loan amounts in millions)


Loan Year	Total Recorded Investment ⁽¹⁾		Number of Loans		Average Balance Per Loan		Loan-To-Value⁽²⁾			Delinquent Principal Balance		Number of Delinquent Loans		Average Balance Per Delinquent Loan
2004 and prior	$	835		437	$	2		40	%	$	—		—	$	—
2005		980		244	$	4		55	%		—		—	$	—
2006		918		235	$	4		62	%		33		6	$	5
2007		788		153	$	5		68	%		—		—	$	—
2008		234		51	$	5		67	%		6		1	$	6
2009		—		—	$	—		—	%		—		—	$	—
2010		132		60	$	2		44	%		—		—	$	—
2011		268		53	$	5		57	%		—		—	$	—
2012		657		96	$	7		63	%		—		—	$	—
2013		855		138	$	6		66	%		—		—	$	—
2014		346		61	$	—		68	%		—		—	$	—

Total	$	6,013		1,528	$	4		59	%	$	39		7	$	5

⁽¹⁾	Total recorded investment reflects the balance sheet carrying value gross of related allowance and the unamortized balance of loan origination fees and costs.

⁽²⁾	Represents weighted-average loan-to-value as of June 30, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

General Account GAAP Net Investment Income Yields

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
GAAP Net Investment Income
Fixed maturity securities—taxable	$	666		$	648		$	1,314		$	663		$	651		$	672		$	656		$	2,642
Fixed maturity securities—non-taxable		3			3			6			2			3			2			2			9
Commercial mortgage loans		81			83			164			91			81			81			82			335
Restricted commercial mortgage loans related to securitization entities		4			4			8			1			8			7			7			23
Equity securities		4			4			8			4			3			6			4			17
Other invested assets		26			39			65			33			33			33			46			145
Limited partnerships		13			11			24			24			8			6			2			40
Restricted other invested assets related to securitization entities		1			1			2			4			—			—			—			4
Policy loans		32			31			63			32			33			32			32			129
Cash, cash equivalents and short-term investments		7			5			12			4			4			5			7			20

Gross investment income before expenses and fees		837			829			1,666			858			824			844			838			3,364
Expenses and fees		(24	)		(24	)		(48	)		(23	)		(23	)		(23	)		(24	)		(93	)

Net investment income	$	813		$	805		$	1,618		$	835		$	801		$	821		$	814		$	3,271

Annualized Yields
Fixed maturity securities—taxable		4.7	%		4.6	%		4.7	%		4.7	%		4.7	%		4.9	%		4.7	%		4.8	%
Fixed maturity securities—non-taxable		3.5	%		3.7	%		3.6	%		2.6	%		4.2	%		2.9	%		2.7	%		3.1	%
Commercial mortgage loans		5.5	%		5.6	%		5.5	%		6.2	%		5.5	%		5.5	%		5.6	%		5.7	%
Restricted commercial mortgage loans related to securitization entities		6.7	%		7.0	%		7.1	%		1.5	%		10.5	%		8.6	%		8.4	%		7.6	%
Equity securities		5.3	%		5.1	%		5.2	%		4.7	%		3.2	%		5.7	%		3.4	%		4.2	%
Other invested assets		40.5	%		56.9	%		49.3	%		44.9	%		42.1	%		29.4	%		28.3	%		32.8	%
Limited partnerships⁽¹⁾		19.6	%		16.1	%		17.7	%		33.2	%		10.4	%		7.5	%		2.4	%		12.8	%
Restricted other invested assets related to securitization entities		1.0	%		1.0	%		1.0	%		4.2	%		—	%		—	%		—	%		1.1	%
Policy loans		8.7	%		8.6	%		8.6	%		8.3	%		7.9	%		7.8	%		8.0	%		8.1	%
Cash, cash equivalents and short-term investments		0.6	%		0.4	%		0.5	%		0.4	%		0.4	%		0.5	%		0.7	%		0.5	%

Gross investment income before expenses and fees		4.7	%		4.7	%		4.7	%		4.9	%		4.8	%		4.9	%		4.8	%		4.8	%
Expenses and fees		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%

Net investment income		4.6	%		4.6	%		4.6	%		4.8	%		4.7	%		4.8	%		4.7	%		4.7	%

Yields are based on net investment income as reported under 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 and equity 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 73 herein for average invested assets and cash used in the yield calculation.

⁽¹⁾	Limited partnership investments are equity-based and do not have fixed returns by period.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Net Investment Gains (Losses), Net of Taxes and Other Adjustments—Detail⁽¹⁾

(amounts in millions)


	2014									2013
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	(6	)	$	(9	)	$	(15	)	$	(5	)	$	1		$	22		$	4		$	22
U.S. government, agencies and government-sponsored enterprises		2			—			2			5			2			1			—			8
Foreign corporate		13			(2	)		11			1			—			8			1			10
Foreign government		—			—			—			2			(2	)		8			4			12
Tax-exempt		—			(1	)		(1	)		—			—			—			(2	)		(2	)
Mortgage-backed securities		—			—			—			(2	)		(9	)		(15	)		(20	)		(46	)
Asset-backed securities		—			—			—			(6	)		(5	)		(11	)		(8	)		(30	)
Equity securities		6			1			7			5			6			8			3			22
Foreign exchange		1			—			1			—			—			—			—			—

Total net realized gains (losses) on available-for-sale securities		16			(11	)		5			—			(7	)		21			(18	)		(4	)

Impairments:
Sub-prime residential mortgage-backed securities		—			—			—			(1	)		(1	)		—			(2	)		(4	)
Commercial mortgage-backed securities		—			—			—			(2	)		(1	)		(2	)		(1	)		(6	)
Corporate fixed maturity securities		—			—			—			—			—			—			(4	)		(4	)
Commercial mortgage loans		(1	)		(1	)		(2	)		—			(1	)		(2	)		—			(3	)

Total impairments		(1	)		(1	)		(2	)		(3	)		(3	)		(4	)		(7	)		(17	)

Net unrealized gains (losses) on trading securities		5			8			13			(5	)		(5	)		(11	)		6			(15	)
Derivative instruments		(4	)		(14	)		(18	)		9			(12	)		(2	)		(27	)		(32	)
Limited partnerships		(1	)		—			(1	)		—			(2	)		—			—			(2	)
Commercial mortgage loans held-for-sale market valuation allowance		2			2			4			(1	)		2			1			1			3
Contingent purchase price valuation change		—			—			—			—			—			(1	)		1			—
Net gains (losses) related to securitization entities		6			4			10			17			13			9			6			45
Other		—			—			—			—			—			—			(1	)		(1	)

Net investment gains (losses), net of taxes		23			(12	)		11			17			(14	)		13			(39	)		(23	)
Adjustment for DAC and other intangible amortization and certain benefit reserves, net of taxes		1			1			2			—			4			5			12			21
Adjustment for net investment (gains) losses attributable to noncontrolling interests, net of taxes		(4	)		1			(3	)		(2	)		(3	)		(3	)		(1	)		(9	)

Net investment gains (losses), net	$	20		$	(10	)	$	10		$	15		$	(13	)	$	15		$	(28	)	$	(11	)

⁽¹⁾	All adjustments for income taxes assume a 35% tax rate.

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	676		$	641		$	560		$	520		$	447
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,833		$	11,699		$	11,550		$	11,412		$	11,302
GAAP Basis ROE^(1)/(2)		5.7	%		5.5	%		4.8	%		4.6	%		4.0	%

Operating ROE
Net operating income (loss) for the twelve months ended⁽¹⁾	$	684		$	659		$	616		$	584		$	562
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,833		$	11,699		$	11,550		$	11,412		$	11,302
Operating ROE^(1)/(2)		5.8	%		5.6	%		5.3	%		5.1	%		5.0	%

Quarterly Average ROE	Three months ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	176		$	184		$	208		$	108		$	141
Average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	12,051		$	11,942		$	11,758		$	11,606		$	11,473
Annualized GAAP Quarterly Basis ROE^(3)/(4)		5.8	%		6.2	%		7.1	%		3.7	%		4.9	%

Operating ROE
Net operating income (loss) for the period ended⁽³⁾	$	158		$	194		$	193		$	139		$	133
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	12,051		$	11,942		$	11,758		$	11,606		$	11,473
Annualized Operating Quarterly Basis ROE^(3)/(4)		5.2	%		6.5	%		6.6	%		4.8	%		4.6	%

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 net 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 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 net operating income (loss) from page 9 herein.

⁽²⁾

Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss), is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss), but including equity related to discontinued operations for the most recent five quarters.

⁽³⁾	Net income (loss) available to Genworth Financial, Inc.’s common stockholders and net operating income (loss) from page 9 herein.

⁽⁴⁾	Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss), is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss).

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Reconciliation of Core Yield


		2014									2013
	(Assets—amounts in billions)	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	76.9		$	74.8		$	76.9		$	72.8		$	73.1		$	72.2		$	76.5		$	72.8
	Subtract:
	Securities lending		0.3			0.3			0.3			0.2			0.2			0.2			0.2			0.2
	Unrealized gains (losses)		5.6			4.3			5.6			2.8			3.3			3.7			6.7			2.8
	Derivative counterparty collateral		0.4			0.4			0.4			0.2			0.3			0.4			0.6			0.2

	Adjusted end of period invested assets and cash	$	70.6		$	69.8		$	70.6		$	69.6		$	69.3		$	67.9		$	69.0		$	69.6

(A)	Average Invested Assets And Cash Used in Reported Yield Calculation	$	70.2		$	69.7		$	70.0		$	69.5		$	68.6		$	68.5		$	69.4		$	69.0
	Subtract:
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		0.2			0.2			0.2			0.3			0.3			0.2			0.3			0.3

(B)	Average Invested Assets And Cash Used in Core Yield Calculation		70.0			69.5			69.8			69.2			68.3			68.3			69.1			68.7
	Subtract:
	Portfolios supporting floating products and non-recourse funding obligations⁽²⁾		4.2			4.3			4.3			4.4			4.6			5.2			5.7			5.0

(C)	Average Invested Assets And Cash Used in Core Yield (excl. Floating and Non-Recourse Funding) Calculation	$	65.8		$	65.2		$	65.5		$	64.8		$	63.7		$	63.1		$	63.4		$	63.7

	(Income—amounts in millions)
(D)	Reported—Net Investment Income	$	813		$	805		$	1,618		$	835		$	801		$	821		$	814		$	3,271
	Subtract:
	Bond calls and commercial mortgage loan prepayments		7			10			17			8			15			14			10			47
	Reinsurance⁽³⁾		13			22			35			20			17			21			22			80
	Other non-core items⁽⁴⁾		12			5			17			17			4			19			2			42
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		3			3			6			3			4			4			4			15

(E)	Core Net Investment Income		778			765			1,543			787			761			763			776			3,087
	Subtract:
	Investment income from portfolios supporting floating products and non-recourse funding obligations⁽²⁾		23			21			44			27			24			25			25			101

(F)	Core Net Investment Income (excl. Floating and Non-Recourse Funding)	$	755		$	744		$	1,499		$	760		$	737		$	738		$	751		$	2,986


(D) / (A)	Reported Yield		4.63	%		4.62	%		4.62	%		4.81	%		4.67	%		4.79	%		4.69	%		4.74	%
(E) / (B)	Core Yield		4.45	%		4.40	%		4.43	%		4.55	%		4.46	%		4.47	%		4.49	%		4.49	%
(F) / (C)	Core Yield (excl. Floating and Non-Recourse Funding)		4.59	%		4.56	%		4.58	%		4.69	%		4.63	%		4.68	%		4.74	%		4.68	%

Notes:

Columns may not add due to rounding. 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 GAAP.

⁽¹⁾	Represents the incremental assets and investment income related to restricted commercial mortgage loans and other invested assets.

⁽²⁾	Floating products refer to institutional products and the non-recourse funding obligations that support certain term and universal life insurance reserves in the company’s life insurance business.

⁽³⁾	Represents imputed investment income related to reinsurance agreements in the lifestyle protection insurance business.

⁽⁴⁾	Includes cost basis adjustments on structured securities, preferred stock income and various other immaterial items.

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Financial Strength Ratings

The company’s principal life insurance subsidiaries are rated in terms of financial strength by Standard & Poor’s Financial Services LLC (S&P), Moody’s Investors Service, Inc. (Moody’s) and A.M. Best Company, Inc. (A.M. Best) as follows:


Company	S&P	Moody’s	A.M. Best
Genworth Life Insurance Company	A-	A3	A
Genworth Life and Annuity Insurance Company	A-	A3	A
Genworth Life Insurance Company of New York	A-	A3	A

The company’s principal mortgage insurance subsidiaries are rated in terms of financial strength by S&P and Moody’s as follows:


Company	S&P	Moody’s
Genworth Mortgage Insurance Corporation	BB-	Ba1
Genworth Residential Mortgage Insurance Corporation of NC	BB-	Ba1
Genworth Financial Mortgage Insurance Pty. Limited (Australia)	AA-	A3
Genworth Financial Mortgage Insurance Limited (Europe)	BBB-	Not rated
Genworth Financial Mortgage Insurance Company Canada⁽¹⁾	AA-	Not rated
Genworth Seguros de Credito a la Vivienda S.A. de C.V.⁽²⁾	Not rated	Aa3.mx

⁽¹⁾	Genworth Financial Mortgage Insurance Company Canada is also rated “AA” by Dominion Bond Rating Service (DBRS).

⁽²⁾	Genworth Seguros de Credito a la Vivienda S.A. de C.V. is also rated “Baa3” by Moody’s on a Global Scale Insurance financial strength basis.

The company’s principal lifestyle protection insurance subsidiaries are rated in terms of financial strength by S&P as follows:

The S&P, Moody’s, A.M. Best and DBRS ratings included 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.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

Financial Strength Ratings

S&P states that an insurer rated “AA” (Very Strong) has very strong financial security characteristics that outweigh any vulnerabilities, and is highly likely to have the ability to meet financial commitments. Insurers rated “AA” (Very Strong), “A” (Strong), “BBB” (Good) or “BB” (Marginal) have very strong, strong, good, or marginal financial security characteristics, respectively. The “AA,” “A,” “BBB” and “BB” ranges are the second-, third-, fourth- 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 in a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “AA-,” “A-,” “BBB-” and “BB-” ratings are the fourth-, seventh-, tenth- and thirteenth-highest of S&P’s 21 ratings categories.

Moody’s states that insurance companies rated “A” (Good) offer good financial security and that insurance companies rated “Ba” (Questionable) offer questionable financial security. The “A” (Good) and “Ba” (Questionable) ranges are the third- and fifth-highest, respectively, 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 “A3” and “Ba1” ratings are the seventh- and eleventh-highest, respectively, of Moody’s 21 ratings categories. Issuers or issues rated “Aa.mx” demonstrate very strong creditworthiness relative to other issuers in Mexico.

A.M. Best states that the “A” (Excellent) rating is assigned to those companies that have, in its opinion, an excellent ability to meet their ongoing insurance obligations. The “A” (Excellent) rating is the third-highest of 15 ratings assigned by A.M. Best, which range from “A++” to “F.”

DBRS states that long-term obligations rated “AA” are of superior credit quality. The capacity for the payment of financial obligations is considered high and unlikely to be significantly vulnerable to future events. Credit quality differs from “AAA” only to a small degree.

S&P, Moody’s, A.M. Best and DBRS review their ratings periodically and the company cannot assure you that it will maintain the current ratings in the future. Other agencies may also rate the company or its insurance subsidiaries on a solicited or an unsolicited basis.

About Genworth Financial

Genworth is a leading financial services company meeting the retirement, longevity and lifestyle protection, investment and mortgage insurance needs of its customers, with a presence in more than 25 countries. For more information, visit www.genworth.com.

Inquiries:

Amy Corbin, 804-662-2685

Amy.Corbin@genworth.com