EX-99.2

EX-99.2 3 d153437dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021


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

*Consolidated Quarterly Results*
Consolidated Net Income (Loss) by Quarter		8
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)		9
Consolidated Balance Sheets		10-11
Consolidated Balance Sheets by Segment		12-13
Deferred Acquisition Costs (DAC) Rollforward		14

*Quarterly Results by Business*
Adjusted Operating Income (Loss) and Sales - Enact Segment		16-21
Adjusted Operating Income (Loss) - U.S. Life Insurance Segment		23-26
Adjusted Operating Income (Loss) - Runoff Segment		28
Adjusted Operating Loss - Corporate and Other Activities		30

*Additional Financial Data*
Investments Summary		32
Fixed Maturity Securities Summary		33
General Account U.S. GAAP Net Investment Income Yields		34
Net Investment Gains (Losses), Net - Detail		35

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		37
Reconciliation of Reported Yield to Core Yield		38

*Corporate Information*
Financial Strength Ratings		40

Note:

Unless otherwise stated, all references in this financial supplement to income (loss) from continuing operations, income (loss) from continuing operations per share, net income (loss), net income (loss) per share, adjusted operating income (loss), adjusted operating income (loss) per share, book value and book value per share should be read as income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders, income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share, net income (loss) available to Genworth Financial, Inc.’s common stockholders, net income (loss) available to Genworth Financial, Inc.’s common stockholders per share, non-U.S. Generally Accepted Accounting Principles (U.S. GAAP) adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, non-GAAP adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share, book value available to Genworth Financial, Inc.’s common stockholders and book value available to Genworth Financial, Inc.’s common stockholders per share, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Dear Investor,

During the second quarter of 2021, Genworth Mortgage Holdings, Inc., the primary business in the company’s Enact segment (formerly known as the U.S. Mortgage Insurance segment), changed its name to Enact Holdings, Inc. (Enact Holdings). Differences in the results of operations between the company’s Enact segment included herein and the Enact Holdings standalone results are predominantly due to the allocation of corporate overhead expenses, tax differences and operating results of Enact Holdings’ mortgage insurance business in Mexico reported as Corporate and Other activities for Genworth Financial, Inc. but included in Enact Holdings’ standalone results.

On March 3, 2021, the company completed a sale of its entire ownership interest of approximately 52% in Genworth Mortgage Insurance Australia Limited (“Genworth Australia”) through an underwritten agreement. Genworth Australia, previously the primary business in the Australia Mortgage Insurance segment, is reported as discontinued operations for all periods presented. Accordingly, all prior periods reflected herein have been re-presented on this basis. The following table presents a reconciliation of adjusted operating income (loss) as previously reported to adjusted operating income (loss) re-presented to reflect the Australia mortgage insurance business as discontinued operations for the periods indicated:


(Amounts in millions)	2020
(Amounts in millions)	4Q			3Q			2Q			1Q			Total
ADJUSTED OPERATING INCOME (LOSS) AS PREVIOUSLY REPORTED	$	173		$	132		$	(21	)	$	33		$	317
Remove Australia Mortgage Insurance segment adjusted operating (income) loss reported as discontinued operations		16			(7	)		(1	)		(9	)		(1	)
Adjustment for corporate overhead allocations, net of taxes⁽¹⁾		(5	)		(4	)		(4	)		(4	)		(17	)
Tax adjustments⁽²⁾		4			4			3			—			11

RE-PRESENTED ADJUSTED OPERATING INCOME (LOSS)	$	188		$	125		$	(23	)	$	20		$	310

⁽¹⁾	Expenses previously reported in the Australia Mortgage Insurance segment and moved to Corporate and Other activities.

⁽²⁾	Tax impacts resulting from the classification of Genworth Australia as discontinued operations.

Thank you for your continued interest in Genworth Financial, Inc.

Regards,

Investor Relations

InvestorInfo@genworth.com

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Use of Non-GAAP Measures

This financial supplement includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.

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

Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves (see page 35).

In the first quarter of 2021, the company repurchased $146 million principal amount of Genworth Holdings, Inc.’s (Genworth Holdings) senior notes due in September 2021 for a pre-tax loss of $4 million. During 2020, the company repurchased $84 million principal amount of Genworth Holdings’ senior notes with 2021 maturity dates for a pre-tax gain of $3 million and $1 million in the second and first quarters of 2020, respectively. In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, the company’s indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income (loss) as they relate to gains (losses) on the early extinguishment of debt.

The company recorded a pre-tax expense of $5 million and $21 million in the second and first quarters of 2021, respectively, and $1 million in each of the fourth, second and first quarters of 2020 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.

The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. This financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 37 and 38 of this financial supplement.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Results of Operations and Selected Operating Performance Measures

The company’s chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.

The company taxes its businesses at the U.S. corporate federal income tax rate of 21%. Each segment is then adjusted to reflect the unique tax attributes of that segment, such as permanent differences between U.S. GAAP and tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.

The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.

This financial supplement contains selected operating performance measures including “sales” and “insurance in-force” or “risk in-force” which are commonly used in the insurance industry as measures of operating performance.

Management regularly monitors and reports sales metrics as a measure of volume of new business generated in a period. Sales refer to new insurance written for mortgage insurance products included in the company’s Enact segment. The company considers new insurance written to be a measure of the company’s operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of the company’s revenues or profitability during that period.

Management regularly monitors and reports insurance in-force and risk in-force for the company’s Enact segment. Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans the company insures. Risk in-force is based on the coverage percentage applied to the estimated current outstanding loan balance. The company considers insurance in-force and risk in-force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.

Management also regularly monitors and reports a loss ratio for the company’s businesses. For the U.S. mortgage insurance business included in the company’s Enact segment, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long-term care insurance business included in the company’s U.S. Life Insurance segment, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.

These operating performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	11,330		$	11,083		$	10,893		$	10,615		$	10,196
Total accumulated other comprehensive income		3,834			3,675			4,425			4,141			4,447

Total Genworth Financial, Inc.’s stockholders’ equity	$	15,164		$	14,758		$	15,318		$	14,756		$	14,643

Book value per share	$	29.89		$	29.14		$	30.28		$	29.19		$	28.96
Book value per share, excluding accumulated other comprehensive income	$	22.33		$	21.88		$	21.54		$	20.99		$	20.17
Common shares outstanding as of the balance sheet date		507.4			506.5			505.8			505.6			505.6

	Twelve months ended
Twelve Month Rolling Average ROE	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
U.S. GAAP Basis ROE		10.3	%		4.0	%		1.7	%		(1.0	)%		(4.8	)%
Operating ROE⁽¹⁾		6.2	%		4.3	%		2.9	%		1.2	%		1.0	%

	Three months ended
Quarterly Average ROE	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
U.S. GAAP Basis ROE		8.6	%		6.8	%		9.9	%		16.1	%		(16.9	)%
Operating ROE⁽¹⁾		6.9	%		6.1	%		7.0	%		4.8	%		(0.9	)%


Basic and Diluted Shares	Three months ended June 30, 2021		Six months ended June 30, 2021
Weighted-average common shares used in basic earnings per share calculations		507.0		506.5
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		8.0		7.9

Weighted-average common shares used in diluted earnings per share calculations		515.0		514.4

⁽¹⁾	See page 37 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.

Consolidated Quarterly Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


				2021				2020
	2Q			1Q		Total		4Q			3Q		2Q			1Q			Total
REVENUES:
Premiums	$	947		$	968	$	1,915	$	970		$	963	$	957		$	946		$	3,836
Net investment income		844			801		1,645		846			820		779			782			3,227
Net investment gains (losses)		70			33		103		147			351		93			(99	)		492
Policy fees and other income		180			183		363		191			184		174			180			729

Total revenues		2,041			1,985		4,026		2,154			2,318		2,003			1,809			8,284

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,161			1,218		2,379		1,157			1,273		1,447			1,337			5,214
Interest credited		127			131		258		132			137		139			141			549
Acquisition and operating expenses, net of deferrals		304			275		579		253			235		210			237			935
Amortization of deferred acquisition costs and intangibles		86			77		163		174			94		87			108			463
Interest expense		43			51		94		55			47		42			51			195

Total benefits and expenses		1,721			1,752		3,473		1,771			1,786		1,925			1,874			7,356

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		320			233		553		383			532		78			(65	)		928
Provision (benefit) for income taxes		75			59		134		82			130		23			(5	)		230

INCOME (LOSS) FROM CONTINUING OPERATIONS		245			174		419		301			402		55			(60	)		698
Income (loss) from discontinued operations, net of taxes⁽¹⁾		(5	)		21		16		(35	)		34		(473	)		(12	)		(486	)

NET INCOME (LOSS)		240			195		435		266			436		(418	)		(72	)		212
Less: net income from continuing operations attributable to noncontrolling interests		—			—		—		—			—		—			—			—
Less: net income (loss) from discontinued operations attributable to noncontrolling interests		—			8		8		(1	)		18		23			(6	)		34

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S
COMMON STOCKHOLDERS	$	240		$	187	$	427	$	267		$	418	$	(441	)	$	(66	)	$	178

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	245		$	174	$	419	$	301		$	402	$	55		$	(60	)	$	698
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders		(5	)		13		8		(34	)		16		(496	)		(6	)		(520	)

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	240		$	187	$	427	$	267		$	418	$	(441	)	$	(66	)	$	178


Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	0.48		$	0.35	$	0.83	$	0.60		$	0.79	$	0.11		$	(0.12	)	$	1.38
Diluted	$	0.47		$	0.34	$	0.82	$	0.59		$	0.79	$	0.11		$	(0.12	)	$	1.36
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	0.47		$	0.37	$	0.84	$	0.53		$	0.83	$	(0.87	)	$	(0.13	)	$	0.35
Diluted	$	0.47		$	0.37	$	0.83	$	0.52		$	0.82	$	(0.86	)	$	(0.13	)	$	0.35
Weighted-average common shares outstanding
Basic		507.0			506.0		506.5		505.6			505.6		505.4			504.3			505.2
Diluted⁽²⁾		515.0			513.8		514.4		512.5			511.5		512.5			504.3			511.6

⁽¹⁾

Income (loss) from discontinued operations relates to the company’s former Australia mortgage insurance business that was sold on March 3, 2021 and its former lifestyle protection insurance business that was sold on December 1, 2015. Refer to page 30 for operating results of Genworth Australia reported as discontinued operations. In the first quarter of 2021, due to the sale of Genworth Australia, the company recorded an after-tax favorable adjustment of $11 million associated with a refinement to its tax matters agreement liability. During the second and first quarters of 2021 and the fourth, third and second quarters of 2020, the company recorded an after-tax loss of $4 million, $1 million, $30 million, $22 million and $520 million, respectively, related to a secured promissory note with AXA S.A. (AXA) resulting from a settlement agreement reached in 2020 regarding a dispute over payment protection insurance claims sold by the company’s former lifestyle protection insurance business. During the first quarter of 2021 and the third quarter of 2020, based on an updated estimate, the company adjusted a liability associated with underwriting losses on a product sold by a distributor in the company’s former lifestyle protection insurance business which resulted in an after-tax benefit (loss) of $(4) million and $23 million, respectively.

⁽²⁾

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

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

(amounts in millions, except per share amounts)


				2021						2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	240		$	187		$	427		$	267		$	418		$	(441	)	$	(66	)	$	178
Add: net income from continuing operations attributable to noncontrolling interests		—			—			—			—			—			—			—			—
Add: net income (loss) from discontinued operations attributable to noncontrolling interests		—			8			8			(1	)		18			23			(6	)		34

NET INCOME (LOSS)		240			195			435			266			436			(418	)		(72	)		212
Less: income (loss) from discontinued operations, net of taxes		(5	)		21			16			(35	)		34			(473	)		(12	)		(486	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		245			174			419			301			402			55			(60	)		698
Less: net income from continuing operations attributable to noncontrolling interests		—			—			—			—			—			—			—			—

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		245			174			419			301			402			55			(60	)		698
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net⁽¹⁾		(70	)		(33	)		(103	)		(144	)		(350	)		(97	)		88			(503	)
(Gains) losses on early extinguishment of debt		—			4			4			—			—			(3	)		12			9
Expenses related to restructuring		5			21			26			1			—			1			1			3
Taxes on adjustments		14			2			16			30			73			21			(21	)		103

ADJUSTED OPERATING INCOME (LOSS)	$	194		$	168		$	362		$	188		$	125		$	(23	)	$	20		$	310

ADJUSTED OPERATING INCOME (LOSS):
Enact segment	$	135		$	126		$	261		$	95		$	141		$	(3	)	$	148		$	381
U.S. Life Insurance segment:
Long-Term Care Insurance		98			95			193			129			59			48			1			237
Life Insurance		(40	)		(63	)		(103	)		(20	)		(69	)		(81	)		(77	)		(247	)
Fixed Annuities		13			30			43			20			24			28			6			78

Total U.S. Life Insurance segment		71			62			133			129			14			(5	)		(70	)		68

Runoff segment		15			12			27			13			19			24			(13	)		43
Corporate and Other		(27	)		(32	)		(59	)		(49	)		(49	)		(39	)		(45	)		(182	)

ADJUSTED OPERATING INCOME (LOSS)	$	194		$	168		$	362		$	188		$	125		$	(23	)	$	20		$	310


Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	0.47		$	0.37		$	0.84		$	0.53		$	0.83		$	(0.87	)	$	(0.13	)	$	0.35
Diluted	$	0.47		$	0.37		$	0.83		$	0.52		$	0.82		$	(0.86	)	$	(0.13	)	$	0.35
Adjusted operating income (loss) per share
Basic	$	0.38		$	0.33		$	0.71		$	0.37		$	0.25		$	(0.05	)	$	0.04		$	0.61
Diluted	$	0.38		$	0.33		$	0.70		$	0.37		$	0.25		$	(0.05	)	$	0.04		$	0.61
Weighted-average common shares outstanding
Basic		507.0			506.0			506.5			505.6			505.6			505.4			504.3			505.2
Diluted⁽²⁾		515.0			513.8			514.4			512.5			511.5			512.5			504.3			511.6

⁽¹⁾	Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves (see page 35 for reconciliation).

⁽²⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Consolidated Balance Sheets

(amounts in millions)


	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value⁽¹⁾	$	61,649		$	60,231		$	63,495		$	62,372		$	61,579
Equity securities, at fair value		147			238			386			575			154
Commercial mortgage loans⁽²⁾		6,912			6,787			6,774			6,911			6,945
Less: Allowance for credit losses		(33	)		(32	)		(31	)		(31	)		(28	)

Commercial mortgage loans, net		6,879			6,755			6,743			6,880			6,917
Policy loans		2,083			1,976			1,978			2,153			2,182
Other invested assets		2,260			1,759			2,099			2,171			2,362

Total investments		73,018			70,959			74,701			74,151			73,194
Cash, cash equivalents and restricted cash		2,214			1,964			2,561			2,740			2,523
Accrued investment income		573			704			655			635			587
Deferred acquisition costs		1,212			1,247			1,487			1,585			1,682
Intangible assets		151			155			157			165			177
Reinsurance recoverable		16,716			16,788			16,864			16,832			16,942
Less: Allowance for credit losses		(50	)		(44	)		(45	)		(44	)		(44	)

Reinsurance recoverable, net		16,666			16,744			16,819			16,788			16,898
Other assets		403			439			404			419			428
Deferred tax asset		211			314			65			201			235
Separate account assets		6,202			6,032			6,081			5,700			5,536
Assets related to discontinued operations⁽³⁾		—			—			2,817			2,541			2,377

Total assets	$	100,650		$	98,558		$	105,747		$	104,925		$	103,637

⁽¹⁾

Amortized cost of $53,111 million, $53,470 million, $53,417 million, $53,241 million and $52,902 million as of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and allowance for credit losses of $—, $3 million, $4 million, $5 million and $7 million as of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.

⁽²⁾	Net of unamortized balance of loan origination fees and costs of $4 million as of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020.

⁽³⁾	Prior to the sale on March 3, 2021, the assets of Genworth Australia were segregated in the consolidated balance sheets. The major asset categories of Genworth Australia reported as discontinued operations were as follows:


	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	—	$	—	$	2,295	$	2,044	$	1,965
Equity securities, at fair value		—		—		90		54		52
Other invested assets		—		—		154		231		111

Total investments		—		—		2,539		2,329		2,128
Cash, cash equivalents and restricted cash		—		—		95		40		74
Accrued investment income		—		—		16		15		14
Deferred acquisition costs		—		—		42		38		36
Intangible assets and goodwill		—		—		43		44		46
Reinsurance recoverable		—		—		—		—		2
Less: Allowance for credit losses		—		—		—		—		—

Reinsurance recoverable, net		—		—		—		—		2
Other assets		—		—		40		26		26
Deferred tax asset		—		—		42		49		51

Assets related to discontinued operations	$	—	$	—	$	2,817	$	2,541	$	2,377

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Consolidated Balance Sheets

(amounts in millions)


	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	42,165		$	40,634		$	42,695		$	41,995		$	41,463
Policyholder account balances		19,944			19,999			21,503			22,731			22,921
Liability for policy and contract claims		11,546			11,415			11,486			11,135			11,054
Unearned premiums		695			728			775			794			810
Other liabilities		1,664			1,710			1,614			1,822			1,941
Long-term borrowings		2,924			2,922			3,403			3,401			2,679
Separate account liabilities		6,202			6,032			6,081			5,700			5,536
Liabilities related to discontinued operations⁽¹⁾		346			360			2,370			2,115			2,145

Total liabilities		85,486			83,800			89,927			89,693			88,549

Equity:
Common stock		1			1			1			1			1
Additional paid-in capital		12,018			12,011			12,008			11,997			11,996
Accumulated other comprehensive income (loss)		3,834			3,675			4,425			4,141			4,447
Retained earnings		2,011			1,771			1,584			1,317			899
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		15,164			14,758			15,318			14,756			14,643
Noncontrolling interests		—			—			502			476			445

Total equity		15,164			14,758			15,820			15,232			15,088

Total liabilities and equity	$	100,650		$	98,558		$	105,747		$	104,925		$	103,637

⁽¹⁾

Liabilities related to discontinued operations relates to a liability recorded in connection with a settlement agreement reached with AXA involving the sale of the company’s former lifestyle protection insurance business. Liabilities related to discontinued operations also includes an unrelated liability associated with underwriting losses on a product sold by a distributor in the company’s former lifestyle protection insurance business. In addition, prior to the sale on March 3, 2021, the liabilities of Genworth Australia were segregated in the consolidated balance sheets. The major liability categories of Genworth Australia reported as discontinued operations were as follows:


	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
LIABILITIES
Liability for policy and contract claims	$	—	$	—	$	331	$	238	$	226
Unearned premiums		—		—		1,193		1,052		994
Other liabilities		—		—		104		91		92
Long-term borrowings		—		—		145		169		138

Liabilities related to discontinued operations	$	—	$	—	$	1,773	$	1,550	$	1,450

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Consolidated Balance Sheet by Segment

(amounts in millions)


	June 30, 2021
	Enact		U.S. Life Insurance		Runoff		Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	5,735	$	65,209	$	2,548	$	2,313		$	75,805
Deferred acquisition costs and intangible assets		40		1,195		117		11			1,363
Reinsurance recoverable, net		—		16,001		665		—			16,666
Deferred tax and other assets		70		117		61		366			614
Separate account assets		—		—		6,202		—			6,202

Total assets	$	5,845	$	82,522	$	9,593	$	2,690		$	100,650

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	42,163	$	2	$	—		$	42,165
Policyholder account balances		—		16,968		2,976		—			19,944
Liability for policy and contract claims		624		10,897		15		10			11,546
Unearned premiums		264		428		3		—			695
Other liabilities		107		770		43		744			1,664
Borrowings		739		—		—		2,185			2,924
Separate account liabilities		—		—		6,202		—			6,202
Liabilities related to discontinued operations		—		—		—		346			346

Total liabilities		1,734		71,226		9,241		3,285			85,486

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,951		7,613		345		(579	)		11,330
Allocated accumulated other comprehensive income (loss)		160		3,683		7		(16	)		3,834

Total Genworth Financial, Inc.’s stockholders’ equity		4,111		11,296		352		(595	)		15,164
Noncontrolling interests		—		—		—		—			—

Total equity		4,111		11,296		352		(595	)		15,164

Total liabilities and equity	$	5,845	$	82,522	$	9,593	$	2,690		$	100,650

⁽¹⁾	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Consolidated Balance Sheet by Segment

(amounts in millions)


	March 31, 2021
	Enact		U.S. Life Insurance			Runoff		Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	5,572	$	63,435		$	2,640	$	1,980		$	73,627
Deferred acquisition costs and intangible assets		42		1,226			123		11			1,402
Reinsurance recoverable, net		—		16,064			680		—			16,744
Deferred tax and other assets		69		(373	)		46		1,011			753
Separate account assets		—		—			6,032		—			6,032

Total assets	$	5,683	$	80,352		$	9,521	$	3,002		$	98,558

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	40,632		$	2	$	—		$	40,634
Policyholder account balances		—		16,969			3,030		—			19,999
Liability for policy and contract claims		603		10,785			17		10			11,415
Unearned premiums		281		444			3		—			728
Other liabilities		105		824			49		732			1,710
Borrowings		739		—			—		2,183			2,922
Separate account liabilities		—		—			6,032		—			6,032
Liabilities related to discontinued operations		—		—			—		360			360

Total liabilities		1,728		69,654			9,133		3,285			83,800

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,816		7,660			381		(774	)		11,083
Allocated accumulated other comprehensive income (loss)		139		3,038			7		491			3,675

Total Genworth Financial, Inc.’s stockholders’ equity		3,955		10,698			388		(283	)		14,758
Noncontrolling interests		—		—			—		—			—

Total equity		3,955		10,698			388		(283	)		14,758

Total liabilities and equity	$	5,683	$	80,352		$	9,521	$	3,002		$	98,558

⁽¹⁾	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Deferred Acquisition Costs Rollforward

(amounts in millions)


	Enact			U.S. Life Insurance			Runoff			Total
Unamortized balance as of March 31, 2021	$	29		$	2,567		$	147		$	2,743
Costs deferred		1			—			—			1
Amortization, net of interest accretion		(2	)		(71	)		(5	)		(78	)

Unamortized balance as of June 30, 2021		28			2,496			142			2,666
Effect of accumulated net unrealized investment (gains) losses		—			(1,426	)		(28	)		(1,454	)

Balance as of June 30, 2021	$	28		$	1,070		$	114		$	1,212

Enact Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Adjusted Operating Income (Loss) and Sales—Enact Segment

(amounts in millions)


				2021						2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q		Total
REVENUES:
Premiums	$	243		$	252		$	495		$	251		$	251		$	243		$	226	$	971
Net investment income		35			35			70			35			34			31			33		133
Net investment gains (losses)		(2	)		(1	)		(3	)		(1	)		(2	)		(1	)		—		(4	)
Policy fees and other income		—			2			2			2			1			1			2		6

Total revenues		276			288			564			287			284			274			261		1,106

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		30			55			85			89			45			228			19		381
Acquisition and operating expenses, net of deferrals		63			57			120			55			54			47			50		206
Amortization of deferred acquisition costs and intangibles		4			4			8			10			3			4			4		21
Interest expense		12			13			25			12			6			—			—		18

Total benefits and expenses		109			129			238			166			108			279			73		626

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		167			159			326			121			176			(5	)		188		480
Provision (benefit) for income taxes		35			34			69			26			37			(1	)		40		102

INCOME (LOSS) FROM CONTINUING OPERATIONS		132			125			257			95			139			(4	)		148		378

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		2			1			3			1			2			1			—		4
Expenses related to restructuring		2			—			2
Taxes on adjustments		(1	)		—			(1	)		(1	)		—			—			—		(1	)

ADJUSTED OPERATING INCOME (LOSS)	$	135		$	126		$	261		$	95		$	141		$	(3	)	$	148	$	381


SALES:
Primary New Insurance Written (NIW)	$	26,700		$	24,900		$	51,600		$	27,000		$	26,600		$	28,400		$	17,900	$	99,900

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Primary New Insurance Written Metrics—Enact Segment

(amounts in millions)


						2021					2020
	2Q					1Q					4Q					3Q					2Q					1Q
	Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW
Product
Monthly	$	24,900		94	%	$	23,400		94	%	$	24,700		92	%	$	23,400		88	%	$	25,800		91	%	$	16,200		91	%
Single		1,700		6			1,400		6			2,200		8			3,100		12			2,500		9			1,500		8
Other⁽¹⁾		100		—			100		—			100		—			100		—			100		—			200		1

Total Primary	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%

Origination
Purchase	$	21,100		79	%	$	15,500		62	%	$	17,800		66	%	$	20,000		75	%	$	17,400		61	%	$	12,000		67	%
Refinance		5,600		21			9,400		38			9,200		34			6,600		25			11,000		39			5,900		33

Total Primary	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%

FICO Scores
Over 760	$	11,800		44	%	$	10,500		42	%	$	10,500		39	%	$	11,300		43	%	$	12,300		43	%	$	7,500		42	%
740 - 759		4,000		15			3,800		15			4,300		16			4,100		15			4,800		17			3,200		18
720 - 739		3,500		13			3,400		14			4,000		15			3,500		13			4,200		15			2,600		14
700 - 719		3,100		12			3,000		12			3,600		13			3,100		12			3,300		11			2,200		12
680 - 699		2,500		9			2,500		10			2,700		10			2,400		9			2,200		8			1,500		8
660 - 679⁽²⁾		1,100		4			1,000		4			1,100		4			1,300		5			900		3			500		3
640 - 659		500		2			500		2			600		2			600		2			500		2			300		2
620 - 639		200		1			200		1			200		1			300		1			200		1			100		1
<620		—		—			—		—			—		—			—		—			—		—			—		—

Total Primary	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%

Loan-To-Value Ratio
95.01% and above	$	2,800		11	%	$	2,200		9	%	$	2,900		11	%	$	3,700		14	%	$	3,200		11	%	$	1,800		10	%
90.01% to 95.00%		10,700		40			9,500		38			11,100		41			11,700		44			12,300		43			7,700		43
85.01% to 90.00%		8,600		32			8,400		34			8,100		30			7,100		27			8,100		29			5,500		31
85.00% and below		4,600		17			4,800		19			4,900		18			4,100		15			4,800		17			2,900		16

Total Primary	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%

Debt-To-Income Ratio
45.01% and above	$	3,300		12	%	$	2,600		10	%	$	3,100		11	%	$	3,100		12	%	$	4,000		14	%	$	3,500		20	%
38.01% to 45.00%		9,200		35			8,700		35			10,200		38			9,900		37			9,600		34			6,000		33
38.00% and below		14,200		53			13,600		55			13,700		51			13,600		51			14,800		52			8,400		47

Total Primary	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		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 2021

Other Metrics—Enact Segment

(dollar amounts in millions)


				2021						2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	225		$	226		$	451		$	229		$	240		$	217		$	208		$	894

Primary Insurance In-Force⁽¹⁾	$	217,500		$	210,200					$	207,900		$	203,000		$	197,000		$	188,000

Risk In-Force
Primary⁽²⁾	$	54,643		$	52,866					$	52,475		$	51,393		$	49,868		$	47,740
Pool		123			134						146			156			169			179

Total Risk In-Force	$	54,766		$	53,000					$	52,621		$	51,549		$	50,037		$	47,919


Expense Ratio (Net Earned Premiums)⁽³⁾		27	%		24	%		26	%		26	%		23	%		21	%		24	%		23	%

Primary Persistency		63	%		56	%		59	%		57	%		59	%		59	%		74	%		59	%

Combined Risk To Capital Ratio⁽⁴⁾		11.8:1			11.7:1						12.1:1			12.1:1			12.0:1			12.2:1

GMICO Risk To Capital Ratio^(4),(5)		12.0:1			11.9:1						12.3:1			12.3:1			12.2:1			12.4:1

PMIERs Available Assets⁽⁶⁾	$	4,926		$	4,769					$	4,588		$	4,451		$	4,218		$	3,974

PMIERs Required Assets⁽⁶⁾	$	2,985		$	3,005					$	3,359		$	3,377		$	2,943		$	2,803

Available Assets Above PMIERs Requirements⁽⁶⁾	$	1,941		$	1,764					$	1,229		$	1,074		$	1,275		$	1,171

PMIERs Sufficiency Ratio⁽⁶⁾		165	%		159	%					137	%		132	%		143	%		142	%

Average Primary Loan Size (in thousands)	$	233		$	228					$	225		$	222		$	220		$	217

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

⁽¹⁾	Primary insurance in-force represents aggregate unpaid balance for loans the company insures. Original loan balances are primarily used to determine premiums.

⁽²⁾	Primary risk in-force represents risk on current loan balances as provided by servicers, lenders and investors and conforms to the presentation under the Private Mortgage Insurer Eligibility Requirements (PMIERs).

⁽³⁾

The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. Expenses associated with the preparation of a strategic transaction and restructuring costs increased the expense ratio by approximately two percentage points for both the three and six months ended June 30, 2021.

⁽⁴⁾

Certain states limit a private mortgage insurer’s risk in-force to 25 times the total of the insurer’s policyholders’ surplus plus the statutory contingency reserve, commonly known as the “risk to capital” requirement. The current period risk to capital ratio is an estimate due to the timing of the filing of statutory statements and is prepared consistent with the presentation of the statutory financial statements in the combined annual statement of the company’s U.S. mortgage insurance subsidiaries.

⁽⁵⁾	Genworth Mortgage Insurance Corporation (GMICO), the company’s principal U.S. mortgage insurance subsidiary.

⁽⁶⁾

The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. The current period PMIERs sufficiency ratio is an estimate due to the timing of the PMIERs filing and does not take into consideration the impact of restrictions recently imposed by the government-sponsored enterprises (GSEs). The GSEs have imposed certain capital restrictions on the company’s Enact segment which remain in effect until certain conditions are met. These restrictions currently require GMICO to maintain 115% of published PMIERs minimum required assets among other restrictions.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Loss Metrics—Enact Segment

(amounts in millions)


				2021						2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Average Paid Claim (in thousands)	$	63.1		$	54.7					$	47.2		$	55.6		$	47.1		$	45.0

Average Reserve Per Primary Delinquency (in thousands)⁽¹⁾	$	17.5		$	13.6					$	11.5		$	8.8		$	7.1		$	13.1

Reserves:
Primary direct case	$	589		$	564					$	517		$	436		$	379		$	202
All other⁽²⁾		35			39						38			38			60			28

Total Reserves	$	624		$	603					$	555		$	474		$	439		$	230


Beginning Reserves	$	603		$	555		$	555		$	474		$	439		$	230		$	233		$	233
Paid claims		(9	)		(7	)		(16	)		(8	)		(10	)		(19	)		(22	)		(59	)
Increase in reserves		30			55			85			89			45			228			19			381

Ending Reserves	$	624		$	603		$	624		$	555		$	474		$	439		$	230		$	555

Loss Ratio⁽³⁾		12	%		22	%		17	%		35	%		18	%		94	%		8	%		39	%

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

⁽¹⁾	Primary direct case reserves divided by primary delinquency count.

⁽²⁾	Other includes loss adjustment expenses, pool, incurred but not reported and reinsurance reserves.

⁽³⁾	The ratio of benefits and other changes in policy reserves to net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Delinquency Metrics—Enact Segment

(dollar amounts in millions)


				2021						2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Primary Loans
Primary loans in-force		933,616			922,186						924,624			913,974			896,232			868,111
Primary delinquent loans		33,568			41,332						44,904			49,692			53,587			15,417
Primary delinquency rate		3.60	%		4.48	%					4.86	%		5.44	%		5.98	%		1.78	%

Beginning Number of Primary Delinquencies		41,332			44,904			44,904			49,692			53,587			15,417			16,392			16,392
New delinquencies		6,862			10,053			16,915			11,923			16,664			48,373			8,114			85,074
Delinquency cures		(14,473	)		(13,478	)		(27,951	)		(16,548	)		(20,404	)		(9,795	)		(8,649	)		(55,396	)
Paid claims		(143	)		(134	)		(277	)		(152	)		(152	)		(404	)		(440	)		(1,148	)
Rescissions and claim denials		(10	)		(13	)		(23	)		(11	)		(3	)		(4	)		—			(18	)

Ending Number of Primary Delinquencies		33,568			41,332			33,568			44,904			49,692			53,587			15,417			44,904

Composition of Cures
Reported delinquent and cured-intraquarter		1,149			1,549						1,433			1,939			3,992			2,236
Number of missed payments delinquent prior to cure:
3 payments or less		4,179			4,812						5,567			13,022			4,522			4,850
4 - 11 payments		6,055			6,849						9,347			5,239			1,122			1,389
12 payments or more		3,090			268						201			204			159			174

Total		14,473			13,478						16,548			20,404			9,795			8,649

Primary Delinquencies by Missed Payment Status
3 payments or less		6,030			8,296						10,484			13,904			43,158			7,650
4 - 11 payments		12,378			21,011						30,324			32,366			7,448			4,909
12 payments or more		15,160			12,025						4,096			3,422			2,981			2,858

Primary Delinquencies		33,568			41,332						44,904			49,692			53,587			15,417



	June 30, 2021
Primary Direct Case Reserves⁽¹⁾ and Percentage Reserved by Payment Status	Direct Case Reserves			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default	$	32		$	318			10	%
4 - 11 payments in default		151			717			21	%
12 payments or more in default		406			914			44	%

Total	$	589		$	1,949			30	%


	December 31, 2020
Primary Direct Case Reserves⁽¹⁾ and Percentage Reserved by Payment Status	Direct Case Reserves			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default	$	43		$	549			8	%
4 - 11 payments in default		331			1,853			18	%
12 payments or more in default		143			204			70	%

Total	$	517		$	2,606			20	%

⁽¹⁾	Primary direct case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Portfolio Quality Metrics—Enact Segment

(amounts in millions)


	June 30, 2021
Policy Year	Average Rate⁽¹⁾			% of Direct Case Reserves⁽²⁾			Primary Insurance In-Force		% of Total			Primary Risk In-Force		% of Total			Delinquency Rate
2004 and prior		6.18	%		3	%	$	621		—	%	$	177		—	%		15.47	%
2005 to 2008		5.55	%		25			9,061		4			2,317		4			11.87	%
2009 to 2013		4.25	%		2			1,961		1			528		1			5.89	%
2014		4.48	%		3			2,709		1			732		1			5.65	%
2015		4.16	%		5			5,810		3			1,549		3			4.99	%
2016		3.88	%		8			11,499		5			3,052		6			4.65	%
2017		4.26	%		11			11,763		6			3,032		5			5.84	%
2018		4.78	%		13			12,289		6			3,086		6			6.98	%
2019		4.20	%		19			28,842		13			7,225		13			5.01	%
2020		3.26	%		11			82,308		38			20,536		38			1.36	%
2021		3.01	%		—			50,614		23			12,409		23			0.14	%

Total		3.65	%		100	%	$	217,477		100	%	$	54,643		100	%		3.60	%


	June 30, 2021						March 31, 2021					June 30, 2020
	Primary Risk In-Force			Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force
Loan-to-value ratio
95.01% and above	$	9,228			17	%	$	9,151		17	%	$	8,789		18	%
90.01% to 95.00%		27,308			50			26,637		51			25,686		51
85.01% to 90.00%		14,776			27			13,997		26			12,957		26
85.00% and below		3,331			6			3,081		6			2,436		5

Total	$	54,643			100	%	$	52,866		100	%	$	49,868		100	%


	June 30, 2021						March 31, 2021					June 30, 2020
	Primary Risk In-Force			Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force
Credit Quality
Over 760	$	20,908			38	%	$	19,829		37	%	$	19,046		38	%
740-759		8,628			16			8,442		16			8,303		17
720-739		7,879			14			7,715		15			7,312		15
700-719		6,848			13			6,678		13			6,016		12
680-699		5,385			10			5,231		10			4,629		9
660-679⁽³⁾		2,531			5			2,484		5			2,180		4
640-659		1,494			3			1,485		3			1,358		3
620-639		720			1			734		1			707		1
<620		250			—			268		—			317		1

Total	$	54,643			100	%	$	52,866		100	%	$	49,868		100	%

⁽¹⁾	Average annual mortgage interest rate weighted by insurance in-force.

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

⁽³⁾	Loans with unknown FICO scores are included in the 660-679 category.

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Adjusted Operating Income (Loss)—U.S. Life Insurance Segment

(amounts in millions)


	2021									2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	703		$	714		$	1,417		$	717		$	711		$	712		$	718		$	2,858
Net investment income		763			716			1,479			765			726			692			695			2,878
Net investment gains (losses)		66			42			108			121			348			118			(70	)		517
Policy fees and other income		145			148			293			157			152			142			144			595

Total revenues		1,677			1,620			3,297			1,760			1,937			1,664			1,487			6,848

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,129			1,155			2,284			1,050			1,221			1,213			1,297			4,781
Interest credited		87			90			177			91			95			97			100			383
Acquisition and operating expenses, net of deferrals		219			192			411			164			158			147			151			620
Amortization of deferred acquisition costs and intangibles		77			68			145			161			87			83			87			418
Interest expense		—			—			—			—			—			—			5			5

Total benefits and expenses		1,512			1,505			3,017			1,466			1,561			1,540			1,640			6,207

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		165			115			280			294			376			124			(153	)		641
Provision (benefit) for income taxes		42			32			74			70			87			33			(27	)		163

INCOME (LOSS) FROM CONTINUING OPERATIONS		123			83			206			224			289			91			(126	)		478

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		(67	)		(41	)		(108	)		(123	)		(348	)		(121	)		67			(525	)
Losses on early extinguishment of debt		—			—			—			—			—			—			4			4
Expenses related to restructuring		2			14			16			1			—			—			—			1
Taxes on adjustments		13			6			19			27			73			25			(15	)		110

ADJUSTED OPERATING INCOME (LOSS)	$	71		$	62		$	133		$	129		$	14		$	(5	)	$	(70	)	$	68


⁽¹⁾ Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	(66	)	$	(42	)	$	(108	)	$	(121	)	$	(348	)	$	(118	)	$	70		$	(517	)
Adjustment for DAC and other intangible amortization and certain benefit reserves		(1	)		1			—			(2	)		—			(3	)		(3	)		(8	)

Net investment (gains) losses, net	$	(67	)	$	(41	)	$	(108	)	$	(123	)	$	(348	)	$	(121	)	$	67		$	(525	)

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Adjusted Operating Income—U.S. Life Insurance Segment—Long-Term Care Insurance

(amounts in millions)


	2021									2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	648		$	646		$	1,294		$	668		$	661		$	649		$	642		$	2,620
Net investment income		509			465			974			499			456			422			419			1,796
Net investment gains (losses)		67			27			94			118			347			129			(55	)		539
Policy fees and other income		2			2			4			3			2			—			—			5

Total revenues		1,226			1,140			2,366			1,288			1,466			1,200			1,006			4,960

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		822			829			1,651			863			901			876			928			3,568
Interest credited		—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		176			141			317			114			108			103			101			426
Amortization of deferred acquisition costs and intangibles		27			24			51			21			25			21			24			91
Interest expense		—			—			—			—			—			—			—			—

Total benefits and expenses		1,025			994			2,019			998			1,034			1,000			1,053			4,085

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		201			146			347			290			432			200			(47	)		875
Provision (benefit) for income taxes		50			38			88			69			99			49			(4	)		213

INCOME (LOSS) FROM CONTINUING OPERATIONS		151			108			259			221			333			151			(43	)		662

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(67	)		(27	)		(94	)		(118	)		(347	)		(129	)		55			(539	)
Expenses related to restructuring		1			10			11			1			—			—			—			1
Taxes on adjustments		13			4			17			25			73			26			(11	)		113

ADJUSTED OPERATING INCOME	$	98		$	95		$	193		$	129		$	59		$	48		$	1		$	237


RATIOS:
Loss Ratio⁽¹⁾		62	%		62	%		62	%		65	%		71	%		69	%		78	%		71	%
Gross Benefits Ratio⁽²⁾		127	%		128	%		128	%		129	%		136	%		135	%		145	%		136	%
⁽¹⁾ The loss ratio was calculated by dividing benefits and other changes in policy reserves less tabular interest on reserves less loss adjustment expenses by net earned premiums.
⁽²⁾ The gross benefits ratio was calculated by dividing benefits and other changes in policy reserves by net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Adjusted Operating Loss—U.S. Life Insurance Segment—Life Insurance

(amounts in millions)


	2021									2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	55		$	68		$	123		$	49		$	50		$	63		$	76		$	238
Net investment income		126			125			251			131			131			127			130			519
Net investment gains (losses)		6			12			18			10			4			5			1			20
Policy fees and other income		142			143			285			151			148			140			141			580

Total revenues		329			348			677			341			333			335			348			1,357

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		245			282			527			131			269			289			302			991
Interest credited		53			56			109			55			57			57			59			228
Acquisition and operating expenses, net of deferrals		34			40			74			38			39			34			39			150
Amortization of deferred acquisition costs and intangibles		43			41			84			133			52			53			44			282
Interest expense		—			—			—			—			—			—			5			5

Total benefits and expenses		375			419			794			357			417			433			449			1,656

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(46	)		(71	)		(117	)		(16	)		(84	)		(98	)		(101	)		(299	)
Benefit for income taxes		(10	)		(15	)		(25	)		(3	)		(18	)		(21	)		(22	)		(64	)

LOSS FROM CONTINUING OPERATIONS		(36	)		(56	)		(92	)		(13	)		(66	)		(77	)		(79	)		(235	)

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(6	)		(12	)		(18	)		(10	)		(4	)		(5	)		(1	)		(20	)
Losses on early extinguishment of debt		—			—			—			—			—			—			4			4
Expenses related to restructuring		1			3			4			—			—			—			—			—
Taxes on adjustments		1			2			3			3			1			1			(1	)		4

ADJUSTED OPERATING LOSS	$	(40	)	$	(63	)	$	(103	)	$	(20	)	$	(69	)	$	(81	)	$	(77	)	$	(247	)

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Adjusted Operating Income—U.S. Life Insurance Segment—Fixed Annuities

(amounts in millions)


	2021									2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		128			126			254			135			139			143			146			563
Net investment gains (losses)		(7	)		3			(4	)		(7	)		(3	)		(16	)		(16	)		(42	)
Policy fees and other income		1			3			4			3			2			2			3			10

Total revenues		122			132			254			131			138			129			133			531

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		62			44			106			56			51			48			67			222
Interest credited		34			34			68			36			38			40			41			155
Acquisition and operating expenses, net of deferrals		9			11			20			12			11			10			11			44
Amortization of deferred acquisition costs and intangibles		7			3			10			7			10			9			19			45
Interest expense		—			—			—			—			—			—			—			—

Total benefits and expenses		112			92			204			111			110			107			138			466

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		10			40			50			20			28			22			(5	)		65
Provision (benefit) for income taxes		2			9			11			4			6			5			(1	)		14

INCOME (LOSS) FROM CONTINUING OPERATIONS		8			31			39			16			22			17			(4	)		51

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		6			(2	)		4			5			3			13			13			34
Expenses related to restructuring		—			1			1			—			—			—			—			—
Taxes on adjustments		(1	)		—			(1	)		(1	)		(1	)		(2	)		(3	)		(7	)

ADJUSTED OPERATING INCOME	$	13		$	30		$	43		$	20		$	24		$	28		$	6		$	78


⁽¹⁾ Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	7		$	(3	)	$	4		$	7		$	3		$	16		$	16		$	42
Adjustment for DAC and other intangible amortization and certain benefit reserves		(1	)		1			—			(2	)		—			(3	)		(3	)		(8	)

Net investment (gains) losses, net	$	6		$	(2	)	$	4		$	5		$	3		$	13		$	13		$	34

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Adjusted Operating Income (Loss)—Runoff Segment

(amounts in millions)


	2021									2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Net investment income	$	43		$	49		$	92		$	52		$	55		$	54		$	49		$	210
Net investment gains (losses)		10			(6	)		4			30			15			4			(75	)		(26	)
Policy fees and other income		35			33			68			32			33			32			33			130

Total revenues		88			76			164			114			103			90			7			314

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		2			8			10			17			7			4			20			48
Interest credited		40			41			81			41			42			42			41			166
Acquisition and operating expenses, net of deferrals		14			13			27			12			12			11			13			48
Amortization of deferred acquisition costs and intangibles		4			5			9			3			4			(1	)		17			23

Total benefits and expenses		60			67			127			73			65			56			91			285

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		28			9			37			41			38			34			(84	)		29
Provision (benefit) for income taxes		6			1			7			8			8			6			(18	)		4

INCOME (LOSS) FROM CONTINUING OPERATIONS		22			8			30			33			30			28			(66	)		25

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		(9	)		5			(4	)		(25	)		(14	)		(5	)		67			23
Taxes on adjustments		2			(1	)		1			5			3			1			(14	)		(5	)

ADJUSTED OPERATING INCOME (LOSS)	$	15		$	12		$	27		$	13		$	19		$	24		$	(13	)	$	43


⁽¹⁾ Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	(10	)	$	6		$	(4	)	$	(30	)	$	(15	)	$	(4	)	$	75		$	26
Adjustment for DAC and other intangible amortization and certain benefit reserves		1			(1	)		—			5			1			(1	)		(8	)		(3	)

Net investment (gains) losses, net	$	(9	)	$	5		$	(4	)	$	(25	)	$	(14	)	$	(5	)	$	67		$	23

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Adjusted Operating Loss—Corporate and Other^(1),(2)

(amounts in millions)


	2021									2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	1		$	2		$	3		$	2		$	1		$	2		$	2		$	7
Net investment income		3			1			4			(6	)		5			2			5			6
Net investment gains (losses)		(4	)		(2	)		(6	)		(3	)		(10	)		(28	)		46			5
Policy fees and other income		—			—			—			—			(2	)		(1	)		1			(2	)

Total revenues		—			1			1			(7	)		(6	)		(25	)		54			16

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			—			—			1			—			2			1			4
Acquisition and operating expenses, net of deferrals		8			13			21			22			11			5			23			61
Amortization of deferred acquisition costs and intangibles		1			—			1			—			—			1			—			1
Interest expense		31			38			69			43			41			42			46			172

Total benefits and expenses		40			51			91			66			52			50			70			238

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(40	)		(50	)		(90	)		(73	)		(58	)		(75	)		(16	)		(222	)
Benefit for income taxes		(8	)		(8	)		(16	)		(22	)		(2	)		(15	)		—			(39	)

LOSS FROM CONTINUING OPERATIONS		(32	)		(42	)		(74	)		(51	)		(56	)		(60	)		(16	)		(183	)

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		4			2			6			3			10			28			(46	)		(5	)
(Gains) losses on early extinguishment of debt		—			4			4			—			—			(3	)		8			5
Expenses related to restructuring		1			7			8			—			—			1			1			2
Taxes on adjustments		—			(3	)		(3	)		(1	)		(3	)		(5	)		8			(1	)

ADJUSTED OPERATING LOSS	$	(27	)	$	(32	)	$	(59	)	$	(49	)	$	(49	)	$	(39	)	$	(45	)	$	(182	)

⁽¹⁾	Includes inter-segment eliminations and the results of other businesses that are managed outside the operating segments, including certain international mortgage insurance businesses.

⁽²⁾

Income (loss) from discontinued operations is considered part of Corporate and Other activities but is excluded from the above table. Income (loss) from discontinued operations on pages 8 and 9 herein include operating results of Genworth Australia that was sold on March 3, 2021 and amounts related to the company’s former lifestyle protection insurance business that was sold on December 1, 2015. Operating results of Genworth Australia reported as discontinued operations were as follows:


	2021								2020
	2Q		1Q			Total			4Q			3Q		2Q		1Q			Total
REVENUES:
Premiums	$	—	$	51		$	51		$	72		$	71	$	62	$	69		$	274
Net investment income		—		4			4			8			7		7		11			33
Net investment gains (losses)		—		(5	)		(5	)		29			24		66		(53	)		66
Policy fees and other income		—		—			—			—			—		—		1			1

Total revenues		—		50			50			109			102		135		28			374

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—		11			11			88			26		39		24			177
Acquisition and operating expenses, net of deferrals		—		7			7			14			14		13		12			53
Amortization of deferred acquisition costs and intangibles		—		6			6			8			7		6		8			29
Goodwill impairment		—		—			—			—			—		5		—			5
Interest expense		—		1			1			2			2		2		1			7

Total benefits and expenses		—		25			25			112			49		65		45			271

INCOME (LOSS) BEFORE INCOME TAXES AND LOSS ON SALE		—		25			25			(3	)		53		70		(17	)		103
Provision (benefit) for income taxes		—		8			8			2			20		23		(5	)		40

INCOME (LOSS) BEFORE LOSS ON SALE		—		17			17			(5	)		33		47		(12	)		63
Loss on sale, net of taxes		—		(3	)		(3	)		—			—		—		—			—

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES		—		14			14			(5	)		33		47		(12	)		63

Less: net income (loss) from discontinued operations attributable to noncontrolling interests		—		8			8			(1	)		18		23		(6	)		34

INCOME (LOSS) FROM DISCONTINUED OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	—	$	6		$	6		$	(4	)	$	15	$	24	$	(6	)	$	29

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Investments Summary

(amounts in millions)


		June 30, 2021					March 31, 2021					December 31, 2020					September 30, 2020					June 30, 2020
		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		$	34,610		47	%	$	33,376		47	%	$	35,678		46	%	$	34,742		45	%	$	34,868		46	%
Private fixed maturity securities			13,722		18			13,402		18			13,734		18			13,522		17			13,148		17
Residential mortgage-backed securities⁽¹⁾			1,683		2			1,766		2			1,900		2			2,042		3			2,151		3
Commercial mortgage-backed securities			2,714		4			2,770		4			2,955		4			2,957		4			2,952		4
Other asset-backed securities			2,500		3			2,806		4			3,076		4			3,028		4			2,708		4
State and political subdivisions			3,371		4			3,135		4			3,165		4			3,110		4			2,995		4
Non-investment grade fixed maturity securities			3,049		4			2,976		4			2,987		4			2,971		4			2,757		4
Equity securities:
Common stocks and mutual funds			63		—			155		—			296		—			475		1			52		—
Preferred stocks			84		—			83		—			90		—			100		—			102		—
Commercial mortgage loans, net			6,879		9			6,755		9			6,743		9			6,880		9			6,917		9
Policy loans			2,083		3			1,976		3			1,978		3			2,153		3			2,182		3
Cash, cash equivalents, restricted cash and short-term investments			2,335		3			1,981		3			2,606		3			2,788		3			2,629		3
Securities lending			105		—			68		—			67		—			75		—			59		—
Other invested assets:	Limited partnerships		1,354		2			1,160		2			1,049		1			844		1			764		1
	Derivatives:
	Interest rate swaps		280		—			84		—			468		1			708		1			939		1
	Foreign currency swaps		2		—			—		—			1		—			10		—			17		—
	Equity index options		47		—			53		—			63		—			67		—			66		—
	Other foreign currency contracts		24		—			27		—			42		—			17		—			—		—
	Other		327		1			350		—			364		1			402		1			411		1

Total invested assets and cash		$	75,232		100	%	$	72,923		100	%	$	77,262		100	%	$	76,891		100	%	$	75,717		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	8,505		20	%	$	8,308		20	%	$	9,252		21	%	$	9,409		21	%	$	10,292		24	%
AA			3,872		9			3,500		8			3,699		8			3,661		8			3,613		8
A			11,158		26			10,986		26			11,784		26			11,852		27			11,751		27
BBB			18,208		41			17,581		42			18,327		41			17,275		40			16,583		38
BB			1,637		4			1,579		4			1,634		4			1,607		4			1,496		3
B			45		—			69		—			74		—			71		—			73		—
CCC and lower			6		—			6		—			6		—			42		—			24		—

Total public fixed maturity securities		$	43,431		100	%	$	42,029		100	%	$	44,776		100	%	$	43,917		100	%	$	43,832		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	862		5	%	$	973		5	%	$	1,103		6	%	$	1,099		6	%	$	1,027		6	%
AA			1,850		10			1,882		10			2,020		11			2,010		11			1,957		11
A			5,183		28			5,188		29			5,482		29			5,377		29			5,179		29
BBB			8,962		49			8,837		49			8,841		47			8,718		47			8,420		47
BB			1,190		7			1,117		6			1,042		6			1,054		6			993		6
B			162		1			197		1			219		1			183		1			160		1
CCC and lower			9		—			8		—			12		—			14		—			11		—

Total private fixed maturity securities		$	18,218		100	%	$	18,202		100	%	$	18,719		100	%	$	18,455		100	%	$	17,747		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 2021

Fixed Maturity Securities Summary

(amounts in millions)


	June 30, 2021					March 31, 2021					December 31, 2020					September 30, 2020					June 30, 2020
	Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total
Fixed Maturity Securities—Security Sector:

U.S. government, agencies and government-sponsored enterprises	$	4,484		7	%	$	4,273		7	%	$	4,805		8	%	$	4,792		8	%	$	5,602		9	%
State and political subdivisions		3,371		6			3,135		5			3,165		5			3,110		5			2,995		5
Foreign government		802		1			820		1			854		1			747		1			689		1
U.S. corporate		35,289		57			34,107		57			35,857		56			35,004		56			34,184		55
Foreign corporate		10,744		18			10,485		17			10,811		17			10,595		17			10,201		17
Residential mortgage-backed securities		1,691		3			1,774		3			1,909		3			2,075		3			2,184		4
Commercial mortgage-backed securities		2,734		4			2,794		5			2,974		5			2,976		5			2,970		5
Other asset-backed securities		2,534		4			2,843		5			3,120		5			3,073		5			2,754		4

Total fixed maturity securities	$	61,649		100	%	$	60,231		100	%	$	63,495		100	%	$	62,372		100	%	$	61,579		100	%

Corporate Bond Holdings—Industry Sector:

Investment Grade:
Finance and insurance	$	11,155		24	%	$	10,807		25	%	$	11,303		25	%	$	10,723		24	%	$	10,299		22	%
Utilities		5,948		13			5,736		13			6,019		13			5,985		13			6,000		14
Energy		3,592		8			3,417		8			3,496		7			3,337		7			3,170		7
Consumer - non-cyclical		6,726		15			6,545		15			6,977		15			6,867		15			6,744		15
Consumer - cyclical		1,979		4			1,922		4			1,944		4			2,043		4			2,004		5
Capital goods		3,371		7			3,275		7			3,431		7			3,485		8			3,469		8
Industrial		2,344		5			2,299		5			2,390		5			2,273		5			2,205		5
Technology and communications		4,518		10			4,376		10			4,589		10			4,258		9			4,150		9
Transportation		1,924		4			1,877		4			2,053		4			2,135		5			2,120		5
Other		1,596		4			1,516		3			1,639		4			1,702		4			1,664		4

Subtotal		43,153		94			41,770		94			43,841		94			42,808		94			41,825		94


Non-Investment Grade:
Finance and insurance		234		1			243		1			275		1			288		1			256		1
Utilities		88		—			94		—			97		—			95		—			97		—
Energy		759		1			712		1			767		2			738		2			673		2
Consumer - non-cyclical		243		1			243		1			233		—			219		—			217		—
Consumer - cyclical		368		1			389		1			374		1			347		1			295		1
Capital goods		141		—			152		—			136		—			152		—			130		—
Industrial		368		1			356		1			340		1			340		1			288		1
Technology and communications		520		1			488		1			463		1			451		1			434		1
Transportation		26		—			18		—			17		—			56		—			49		—
Other		133		—			127		—			125		—			105		—			121		—

Subtotal		2,880		6			2,822		6			2,827		6			2,791		6			2,560		6

Total	$	46,033		100	%	$	44,592		100	%	$	46,668		100	%	$	45,599		100	%	$	44,385		100	%

Fixed Maturity Securities—Contractual Maturity Dates:

Due in one year or less	$	1,291		2	%	$	1,291		2	%	$	1,305		2	%	$	1,375		2	%	$	1,406		2	%
Due after one year through five years		9,030		15			8,926		15			9,185		14			8,998		15			8,809		14
Due after five years through ten years		15,158		25			14,904		24			14,759		23			14,548		23			14,182		23
Due after ten years		29,211		47			27,699		46			30,243		48			29,327		47			29,274		48

Subtotal		54,690		89			52,820		87			55,492		87			54,248		87			53,671		87
Mortgage and asset-backed securities		6,959		11			7,411		13			8,003		13			8,124		13			7,908		13

Total fixed maturity securities	$	61,649		100	%	$	60,231		100	%	$	63,495		100	%	$	62,372		100	%	$	61,579		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

General Account U.S. GAAP Net Investment Income Yields

(amounts in millions)


	2021									2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
U.S. GAAP Net Investment Income
Fixed maturity securities - taxable	$	608		$	599		$	1,207		$	618		$	625		$	594		$	611		$	2,448
Fixed maturity securities - non-taxable		1			2			3			1			2			1			2			6
Equity securities		2			3			5			5			3			2			2			12
Commercial mortgage loans		103			78			181			94			82			84			85			345
Other invested assets		58			58			116			65			57			52			49			223
Limited partnerships		54			31			85			38			22			14			(2	)		72
Policy loans		40			50			90			50			51			49			49			199
Cash, cash equivalents, restricted cash and short-term investments		—			—			—			—			1			4			10			15

Gross investment income before expenses and fees		866			821			1,687			871			843			800			806			3,320
Expenses and fees		(22	)		(20	)		(42	)		(25	)		(23	)		(21	)		(24	)		(93	)

Net investment income	$	844		$	801		$	1,645		$	846		$	820		$	779		$	782		$	3,227

Annualized Yields
Fixed maturity securities - taxable		4.6	%		4.5	%		4.5	%		4.6	%		4.7	%		4.5	%		4.7	%		4.7	%
Fixed maturity securities - non-taxable		3.1	%		6.3	%		4.7	%		3.1	%		6.2	%		2.6	%		5.2	%		4.3	%
Equity securities		4.1	%		3.8	%		3.9	%		4.2	%		3.3	%		5.3	%		4.8	%		4.2	%
Commercial mortgage loans		6.0	%		4.6	%		5.3	%		5.5	%		4.8	%		4.9	%		4.9	%		5.0	%
Other invested assets⁽¹⁾		68.6	%		65.0	%		67.1	%		67.9	%		56.2	%		50.0	%		48.2	%		56.0	%
Limited partnerships⁽²⁾		17.2	%		11.2	%		14.3	%		16.1	%		10.9	%		7.8	%		(1.2	)%		9.1	%
Policy loans		7.9	%		10.1	%		8.9	%		9.7	%		9.4	%		9.3	%		9.5	%		9.5	%
Cash, cash equivalents, restricted cash and short-term investments		—	%		—	%		—	%		—	%		0.1	%		0.6	%		1.4	%		0.5	%

Gross investment income before expenses and fees		5.2	%		5.0	%		5.1	%		5.2	%		5.1	%		4.9	%		4.9	%		5.0	%
Expenses and fees		(0.1	)%		(0.2	)%		(0.1	)%		(0.1	)%		(0.2	)%		(0.1	)%		(0.1	)%		(0.1	)%

Net investment income		5.1	%		4.8	%		5.0	%		5.1	%		4.9	%		4.8	%		4.8	%		4.9	%

Yields are based on net investment income as reported under U.S. GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability. See page 38 herein for average invested assets and cash used in the yield calculation.

⁽¹⁾	Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation.

⁽²⁾	Limited partnership investments are primarily equity-based and do not have fixed returns by period.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Net Investment Gains (Losses), Net—Detail

(amounts in millions)


	2021									2020
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	2		$	4		$	6		$	7		$	2		$	2		$	2		$	13
U.S. government, agencies and government-sponsored enterprises		—			—			—			—			316			94			—			410
Foreign corporate		(2	)		1			(1	)		5			1			(1	)		—			5
Foreign government		1			—			1			—			—			1			—			1
Tax exempt		—			—			—			1			—			—			—			1
Mortgage-backed securities		—			(1	)		(1	)		11			—			4			—			15
Asset-backed securities		—			—			—			(1	)		—			(2	)		—			(3	)

Total net realized gains (losses) on available-for-sale securities		1			4			5			23			319			98			2			442

Net change in allowance for credit losses on available-for-sale fixed maturity securities		(4	)		(2	)		(6	)		—			2			(7	)		—			(5	)
Write-down of available-for-sale fixed maturity securities		—			(1	)		(1	)		—			(4	)		—			—			(4	)
Net realized gains (losses) on equity securities sold		(2	)		(5	)		(7	)		2			(3	)		—			—			(1	)
Net unrealized gains (losses) on equity securities still held		6			(8	)		(2	)		8			3			5			(12	)		4
Limited partnerships		65			37			102			84			31			37			(40	)		112
Commercial mortgage loans		(1	)		(1	)		(2	)		—			(3	)		1			—			(2	)
Derivative instruments		4			8			12			26			9			(36	)		(48	)		(49	)
Other		1			1			2			4			(3	)		(5	)		(1	)		(5	)

Net investment gains (losses), gross		70			33			103			147			351			93			(99	)		492
Adjustment for DAC and other intangible amortization and certain benefit reserves		—			—			—			(3	)		(1	)		4			11			11

Net investment gains (losses), net	$	70		$	33		$	103		$	144		$	350		$	97		$	(88	)	$	503

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
U.S. GAAP Basis ROE	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	1,112		$	431		$	178		$	(106	)	$	(506	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income⁽²⁾	$	10,823		$	10,684		$	10,618		$	10,592		$	10,618
U.S. GAAP Basis ROE ^(1)/(2)		10.3	%		4.0	%		1.7	%		(1.0	)%		(4.8	)%

Operating ROE
Adjusted operating income for the twelve months ended⁽¹⁾	$	675		$	458		$	310		$	125		$	109
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income⁽²⁾	$	10,823		$	10,684		$	10,618		$	10,592		$	10,618
Operating ROE ^(1)/(2)		6.2	%		4.3	%		2.9	%		1.2	%		1.0	%

Quarterly Average ROE	Three months ended
U.S. GAAP Basis ROE	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	240		$	187		$	267		$	418		$	(441	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income⁽⁴⁾	$	11,207		$	10,988		$	10,754		$	10,406		$	10,415
Annualized U.S. GAAP Quarterly Basis ROE ^(3)/(4)		8.6	%		6.8	%		9.9	%		16.1	%		(16.9	)%

Operating ROE
Adjusted operating income (loss) for the period ended⁽³⁾	$	194		$	168		$	188		$	125		$	(23	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income⁽⁴⁾	$	11,207		$	10,988		$	10,754		$	10,406		$	10,415
Annualized Operating Quarterly Basis ROE ^(3)/(4)		6.9	%		6.1	%		7.0	%		4.8	%		(0.9	)%

Non-GAAP Definition for Operating ROE

The company references the non-GAAP financial measure entitled “operating return on equity” or “operating ROE.” The company defines operating ROE as adjusted operating income (loss) divided by average ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss) in average ending Genworth Financial, Inc.’s stockholders’ equity. Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders divided by average ending Genworth Financial, Inc.’s stockholders’ equity determined in accordance with U.S. GAAP.

⁽¹⁾	The twelve months ended information is derived by adding the four quarters of net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) from page 9 herein.

⁽²⁾	Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, for the most recent five quarters.

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Reconciliation of Reported Yield to Core Yield


		2021									2020
	(Assets - amounts in billions)		2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
	Reported - Total Invested Assets and Cash	$	75.2		$	72.9		$	75.2		$	77.3		$	76.9		$	75.7		$	71.3		$	77.3
	Subtract:
	Securities lending		0.1			0.1			0.1			0.1			0.1			0.1			0.1			0.1
	Unrealized gains (losses)		8.9			6.9			8.9			10.7			9.9			9.7			6.0			10.7

	Adjusted end of period invested assets and cash	$	66.2		$	65.9		$	66.2		$	66.5		$	66.9		$	65.9		$	65.2		$	66.5

(A)	Average Invested Assets and Cash Used in Reported and Core Yield Calculation	$	66.1		$	66.2		$	66.2		$	66.7		$	66.4		$	65.6		$	65.3		$	66.0

	(Income - amounts in millions)

(B)	Reported - Net Investment Income	$	844		$	801		$	1,645		$	846		$	820		$	779		$	782		$	3,227
	Subtract:
	Bond calls and commercial mortgage loan prepayments		39			15			54			40			23			8			16			87
	Other non-core items⁽¹⁾		3			2			5			6			6			2			7			21

(C)	Core Net Investment Income	$	802		$	784		$	1,586		$	800		$	791		$	769		$	759		$	3,119


(B) / (A)	Reported Yield		5.11	%		4.84	%		4.97	%		5.07	%		4.94	%		4.75	%		4.79	%		4.89	%
(C) / (A)	Core Yield		4.85	%		4.73	%		4.79	%		4.80	%		4.76	%		4.69	%		4.65	%		4.73	%

Note: Yields have been annualized.

Non-GAAP Definition for Core Yield

The company references the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP.

⁽¹⁾	Includes cost basis adjustments on structured securities and various other immaterial items.

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

Financial Strength Ratings As Of August 2, 2021


Company	Standard & Poor’s Financial Services LLC (S&P)	Moody’s Investors Service, Inc. (Moody’s)	A.M. Best Company, Inc. (A.M. Best)
Genworth Mortgage Insurance Corporation	BB+ (Marginal)	Baa3 (Adequate)	N/A
Genworth Life Insurance Company	N/A	N/A	C++ (Marginal)
Genworth Life and Annuity Insurance Company	N/A	N/A	B (Fair)
Genworth Life Insurance Company of New York	N/A	N/A	C++ (Marginal)

The ratings included herewith represent those solicited by the company and are not designed to be, and do not serve as, measures of protection or valuation offered to investors. These financial strength ratings should not be relied on with respect to making an investment in the company’s securities.

S&P states that an insurer rated “BB” (Marginal) has marginal financial security characteristics. The “BB” range is the fifth-highest of nine financial strength rating ranges assigned by S&P, which range from “AAA” to “R.” A plus (+) or minus (-) shows relative standing within a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “BB+” rating is the eleventh-highest of S&P’s 21 ratings categories.

Moody’s states that insurance companies rated “Baa” (Adequate) offer adequate financial security. The “Baa” (Adequate) range is the fourth-highest of nine financial strength rating ranges assigned by Moody’s, which range from “Aaa” to “C.” Numeric modifiers are used to refer to the ranking within the groups, with 1 being the highest and 3 being the lowest. These modifiers are not added to ratings in the “Aaa” category or to ratings below the “Caa” category. Accordingly, the “Baa3” rating is the tenth-highest of Moody’s 21 ratings categories.

A.M. Best states that its “B” (Fair) rating is assigned to companies that have, in its opinion, a fair ability to meet their ongoing insurance obligations while “C++” (Marginal) is assigned to those companies that have, in its opinion, a marginal ability to meet their ongoing insurance obligations. The “B” (Fair) and “C++” (Marginal) ratings are the seventh- and ninth-highest of 15 ratings assigned by A.M. Best, which range from “A++” to “F.”

The company also solicits a rating from HR Ratings on a local scale for Genworth Seguros de Credito a la Vivienda S.A. de C.V., its Mexican mortgage insurance subsidiary, with a short-term rating of “HR1” and long-term rating of “HR AA.” For short-term ratings, HR Ratings states that “HR1” rated companies are viewed as exhibiting high capacity for timely payment of debt obligations in the short-term and maintain low credit risk. The “HR1” short-term rating category is the highest of six short-term rating categories, which range from “HR1” to “HR D.” For long-term ratings, HR Ratings states that “HR AA” rated companies are viewed as having high credit quality and offer high safety for timely payment of debt obligations and maintain low credit risk under adverse economic scenarios. The “HR AA” long-term rating is the second-highest of HR Ratings’ eight long-term rating categories, which range from “HR AAA” to “HR D.”

S&P, Moody’s, A.M. Best and HR Ratings review their ratings periodically and the company cannot assure you that it will maintain the current ratings in the future. These and other agencies may also rate the company or its insurance subsidiaries on a solicited or an unsolicited basis. The company does not provide information to agencies issuing unsolicited ratings and cannot ensure that any agencies that rate the company or its insurance subsidiaries on an unsolicited basis will continue to do so.