GENWORTH FINANCIAL INC
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2024-05-01
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
May 1, 2024
Date of Report
(Date of earliest event reported)
GENWORTH FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware 001-32195 80-0873306
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
11011 West Broad Street 23060
,
Glen Allen
,
Virginia
(Address of principal executive offices) (Zip Code)
(
804
)
281-6000
(Registrant's telephone number, including area code)
6620 West Broad Street
,
Richmond
,
Virginia
23230
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form
8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction A.2
below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule
14a-12
under the Exchange Act (17 CFR
240.14a-12)
Pre-commencement
communications pursuant to Rule
14d-2(b)
under the Exchange Act (17 CFR
240.14d-2(b))
Pre-commencement
communications pursuant to Rule
13e-4(c)
under the Exchange Act (17 CFR
240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Name of each exchange
Symbol on which registered
Class A Common Stock, par value $.001 per share GNW New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as
defined in Rule 405 of the Securities Act of 1933 ((s)230.405 of this chapter)
or Rule
12b-2
of the Securities Exchange Act of 1934
((s)240.12b-2
of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a)
of the Exchange Act.
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Item 2.02 Results of Operations and Financial Condition.
On May 1, 2024, Genworth Financial, Inc. (the "Company") issued (1) a press
release announcing its financial results for the quarter ended March 31, 2024,
a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein
by reference, and (2) a financial supplement for the quarter ended March 31,
2024, a copy of which is attached hereto as Exhibit 99.2 and is incorporated
herein by reference.
The information contained in this Current Report on Form
8-K
(including the exhibits) is being furnished and shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934 (the
"Exchange Act") or otherwise subject to the liabilities under that Section and
shall not be deemed to be incorporated by reference into any filing of the
company under the Securities Act of 1933, as amended or the Exchange Act,
except as shall be expressly set forth by specific reference in such filing.
The information contained in this Current Report on Form
8-K
shall not be incorporated by reference into any registration statement or
other document pursuant to the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in
any such filing.
Item 9.01 Financial Statements and Exhibits.
The following materials are furnished as exhibits to this Current Report on Form
8-K:
Exhibit Description of Exhibit
Number
99.1 Press Release dated May 1, 2024
99.2 Financial Supplement for the quarter ended March 31, 2024
104 Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENWORTH FINANCIAL, INC.
Date: May 1, 2024 By: /s/ Darren W. Woodell
Darren W. Woodell
Vice President and Controller
(Principal Accounting Officer)
Exhibit 99.1
Genworth Financial Announces First Quarter 2024 Results
Strategic Highlights
. Executed $63M in share repurchases in the quarter; $434M in total
executed through April 30, 2024, at anaverage price of $5.42 per share
. Enact announced an increase to its quarterly dividend, as well as a new share
repurchase program withauthorization to purchase up to $250M of common stock
. Continued progress on the LTC
1
multi-year rate action plan(MYRAP) with $41M of gross incremental premium approvals; $28.3B net present value achieved from
in-force
rate actions (IFAs) since 2012
. CareScout continued to expand the CareScout Quality Network, a
first-of-its-kind
group of long-term care providers who meet high quality standards and are committed to person-centered care
Financial Highlights
. Net income
2
of $139M, or $0.31 per diluted share, andadjusted operating income
2,
3
of $85M, or $0.19 per diluted share
. Enact reported adjusted operating income of $135M
2
;distributed $61M in capital returns to Genworth
. U.S. life insurance companies' RBC
4
ratio of 314%
5
driven by strong statutory income
. Genworth holding company cash and liquid assets of $253M at
quarter-end
Richmond, VA (May 1, 2024) - Genworth Financial, Inc. (NYSE: GNW) today
reported results for the quarter ended March 31,2024.
"I'm pleased with Genworth's solid performance to start the year," said Tom
McInerney, President & CEO. "Enact recorded yet another strong quarter,
evidenced by continued growth in equity andtoday's return of capital
announcements. We further strengthened the financial stability of our LTC legacy
block and returned $63 million to shareholders through share repurchases.
We remain focused on executing our strategy and laying thefoundation for
long-term growth through CareScout. The recently launched CareScout Quality
Network will drive better care outcomes for our LTC policyholders who select
in-network
providers, allowing them
toextend their benefits while
driving significant claims
savings for Genworth."
Consolidated Metrics Q1 2024 Q4 2023 Q1 2023
(Amounts in millions, except per share data)
Net income (loss) $ 139 $ (212 ) $ 122
2
Earnings (loss) per diluted share $ 0.31 $ (0.47 ) $ 0.24
2
Adjusted operating income (loss) $ 85 $ (230 ) $ 144
2,3
Adjusted operating income (loss) per dilutedshare $ 0.19 $ (0.51 ) $ 0.29
2,3
Weighted-average diluted shares 450.3 449.4 500.1
6
1
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Consolidated GAAP Financial Highlights
. Net income in the quarter was driven by Enact, which had very strong operating performance,
as well as positiveLTC earnings, partially offset by losses in Corporate and Other
. Net investment gains, net of taxes, increased net income by $39 million in
the current quarter, comparedwith net investment gains of $30 million in
the prior quarter and net investment losses of $9 million in the prior
year. The investment gains in the current quarter were driven primarily by
mark-to-market
adjustments on limited
partnerships and equity
securities, partially offset
by net trading losses
. Changes in the fair value of market risk benefits, net of taxes, increased
net income by $18 million in thequarter driven primarily by the
favorable change in the interest rate yield curve, compared with decreases
of $11 million in the prior quarter and $13 million in the prior year
. Net investment income was $782 million in the quarter, down from $810 million
in the prior quarterprimarily driven by lower income from limited partnerships
Enact
GAAP Operating Metrics Q1 2024 Q4 2023 Q1 2023
(Dollar amounts in millions)
Adjusted operating income $ 135 $ 129 $ 143
2
Primary new insurance written $ 10,526 $ 10,453 $ 13,154
Loss ratio 8 % 10 % (5 )%
Equity $ 3,846 $ 3,785 $ 3,514
7
. Current quarter results reflect a
pre-tax
reserve release of$54 million primarily from favorable cure performance on
delinquencies from early 2023 and prior. The prior quarter and prior year included
pre-tax
reserve releases of $53 million
and$70 million, respectively
. Net investment income of $57 million in the current quarter was up from $46
million in the prior yearfrom higher yields and higher average invested assets
. Primary insurance
in-force
increased four percent versus the prior yearto $264 billion driven
by new insurance written (NIW) and continued elevated persistency
. Primary NIW was down 20 percent versus the prior year primarily due
to a smaller mortgage insurance marketand elevated mortgage rates
. New delinquencies increased 19 percent to 11,395 from 9,599 in the prior year primarily from the aging
oflarge, newer books. New delinquencies for the quarter were more than offset by strong cure performance
2
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Capital Metric Q1 2024 Q4 2023 Q1 2023
PMIERs Sufficiency Ratio 163 % 161 % 164 %
5,
8
. Enact announced an increase to its quarterly dividend from $0.16 to $0.185 per share, payable in June 2024
. Enact also announced a new share repurchase program with authorization to purchase up to $250 million ofcommon stock
. Enact paid a quarterly dividend of $0.16 per share in the current quarter
. Estimated PMIERs sufficiency ratio of 163 percent, $1,883 million above requirements
Long-Term Care Insurance
GAAP Operating Metrics Q1 2024 Q4 2023 Q1 2023
(Amounts in millions)
Adjusted operating income (loss) $ 3 $ (151 ) $ 23
Premiums $ 578 $ 615 $ 616
Net investment income $ 464 $ 489 $ 473
Liability remeasurement gains (losses) $ 16 $ (188 ) $ 32
Cash flow assumption updates 2 (61 ) (21 )
Actual to expected experience 14 (127 ) 53
. Premiums decreased versus the prior quarter primarily driven by seasonal trends
and versus the prior yearprimarily from policy terminations and policies entering
paid-up
status. While legal settlements have reduced LTC tail-risk, they have accelerated the decline
in renewal premiums, which also decreased thepremium impact from IFAs versus the prior quarter
. Net investment income declined versus the prior quarter and the prior year driven primarily by lower limitedpartnership income
. Current quarter liability remeasurement gain included seasonally high mortality, though lower than the prior year
. Prior quarter included a liability remeasurement loss of $188 million
pre-tax,
which included $61 million of assumption updates
3
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Life and Annuities
GAAP Adjusted Operating Income (Loss) Q1 2024 Q4 2023 Q1 2023
(Amounts in millions)
Life Insurance $ (33 ) $ (206 ) $ (27 )
Fixed Annuities 11 9 14
Variable Annuities 7 14 9
Total Life and Annuities $ (15 ) $ (183 ) $ (4 )
Life Insurance
. Results reflect unfavorable impact from seasonally high mortality, though lower than the prior year
. Premiums and deferred acquisition costs amortization were lower versus the prior year primarily driven by blockrunoff
. Prior quarter included an unfavorable $179 million
after-tax
impactfor annual assumption updates
Annuities
. Fixed annuities results included favorable mortality. Lower net spreads primarily related to block runoff versusthe prior year
. Prior quarter variable annuities results included favorable impacts of annual assumption updates
U.S. Life Insurance Companies
9
Statutory Results and RBC
(Dollar amounts in millions) Q1 2024 Q4 2023 Q1 2023
Statutory $ 258 $ 148 $ 192
Pre-Tax
Income (Loss)
5,
10
Long-Term Care Insurance 151 (9 ) 138
Life Insurance (18 ) 82 (23 )
Fixed Annuities 17 16 25
Variable Annuities 108 59 52
GLIC Consolidated RBC Ratio 314 % 303 % 295 %
5
. Statutory
pre-tax
income was $258 million in the current quarter:
. LTC continued to benefit from premium increases and benefit reductions from IFAs and
legal settlements, as wellas the favorable impacts of seasonally high mortality
. Life insurance results included unfavorable impacts of seasonally high mortality. Prior quarter results includeda $99 million
pre-tax
benefit from annual assumption updates
. Fixed annuities results reflect favorable mortality, but lower net spread income primarily from block runoff
. Variable annuity results included a benefit from the impact of equity market and interest rate performance
4
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. Current quarter GLIC consolidated RBC ratio was 314 percent, up from the
prior quarter driven primarily byearnings in LTC and variable annuities
Corporate and Other
. The current quarter adjusted operating loss was $38 million, up from $25 million in the prior quarterand $18 million
in the prior year primarily driven by $15 million of tax related timing items and higher expenses related to CareScout
Holding Company Cash and Liquid Assets
(Amounts in millions) Q1 2024 Q4 2023 Q1 2023
Holding Company Cash and Liquid Assets $ 253 $ 350 $ 233
11
,
12
. Cash and liquid assets of $253 million remained above the company's cash target of
two-times
annual debt service
. Cash inflows during the current quarter consisted of $61 million from Enact capital returns,
which includeda $21 million quarterly dividend and $40 million in share repurchase proceeds
. Current quarter cash outflows included $78 million primarily related to employee
benefit payments, which arereimbursed by the subsidiary businesses, $63
million in share repurchases, $12 million related to debt servicing costs and
the repurchase of $6 million principal of the company's subordinated notes
Returns to Shareholders
. In the first quarter of 2024, the company repurchased $63 million of its common stock at an
average price of$6.17 per share leaving 440 million shares outstanding at the end of the quarter
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 company focused on
empowering families to navigate the aging journey with confidence, now and in
thefuture. Headquartered in Richmond, Virginia, Genworth provides guidance,
products, and services that help people understand their caregiving options
and fund their long-term care needs. Genworth is also the parent company of
publicly traded EnactHoldings, Inc. (Nasdaq: ACT), a leading U.S. mortgage
insurance provider. For more information on Genworth, visit
genworth.com
, and for more information on Enact Holdings, Inc. visit
enactmi.com
.
5
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Conference Call Information
Investors are encouraged to read this press release, summary presentation and
financial supplement which are now posted on the company's website,
http://investor.genworth.com
.
Genworth will conduct a conference call on May 2, 2024 at 9:00 a.m. (ET) to
discuss its first quarter results,which will be accessible via:
. Telephone:
888-208-1820
or
323-794-2110
(outside the U.S.); conference ID # 9022176; or
. Webcast:
https://investor.genworth.com/news-events/ir-calendar
Allow at least 15 minutes prior to the call time to register for the call. A
replay of the webcast will be available on thecompany's website for one year.
Prior to Genworth's conference call, Enact will hold a conference call on May
2, 2024 at 8:00 a.m. (ET) todiscuss its first quarter results, which will be
accessible via:
. Telephone: Click
here
to obtain a
dial-in
number and unique PINfor Enact's live question and answer session; or
. Webcast:
http://ir.enactmi.com/news-and-events/events
Allow at least 15 minutes prior to the call time to register for the call.
Contact Information:
Investors: Sarah E. Crews
InvestorInfo@genworth.com
Media: Amy Rein
Amy.Rein@genworth.com
6
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Use of
Non-GAAP
Measures
Management uses
non-GAAP
financial measures entitled "adjusted operating income (loss)" and
"adjustedoperating income (loss) per share" to evaluate performance and
allocate resources. Adjusted operating income (loss) per share is derived from
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) attributable to noncontrolling interests, net
investment gains (losses), changes in fair value of market risk benefits
andassociated hedges, gains (losses) on the sale of businesses, gains (losses)
on the early extinguishment of debt, restructuring costs and infrequent or
unusual
non-operating
items. A component of thecompany'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. The company excludes net investment
gains (losses), changes in fair value of market risk benefits andassociated
hedges, gains (losses) on the sale of businesses, gains (losses) on the early
extinguishment of debt, restructuring costs and infrequent or unusual
non-operating
items from adjusted operating income(loss) because, in the company's opinion,
they are not indicative of overall operating performance.
While some of these items may be significantcomponents of net income (loss)
determined in accordance with 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), among other key performance indicators, 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 operatingincome (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) ornet income (loss) per share
on a basic and diluted basis determined in accordance with 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) to adjusted operating income (loss)
assume a 21 percent tax rate and are net of the portion attributable
tononcontrolling interests. Changes in fair value of market risk benefits and
associated hedges are adjusted to exclude changes in reserves, attributed fees
and benefit payments.
The tables at the end of this press release provide a reconciliation of net
income (loss) available to Genworth Financial, Inc.'s common stockholders
toadjusted operating income (loss) for the three months ended March 31, 2024
and 2023, as well as the three months ended December 31, 2023 and reflect
adjusted operating income (loss) as determined in accordance with accounting
guidancerelated to segment reporting.
Statutory Accounting Data
The company presents certain supplemental statutory data for GLIC and its
consolidating life insurance subsidiaries that has been prepared on the basis
ofstatutory accounting principles (SAP). GLIC and its consolidating life
insurance subsidiaries file financial statements with state insurance
regulatory authorities and the National Association of Insurance Commissioners
that are prepared using SAP,an accounting basis either prescribed or permitted
by such authorities. Due to differences in methodology between SAP and GAAP,
the values for assets, liabilities and equity, and the recognition of income
and expenses, reflected in financialstatements prepared in accordance with
GAAP are materially different from those reflected in financial statements
prepared under SAP. This supplemental statutory data should not be viewed as
an alternative to, or used in lieu of, GAAP.
7
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This supplemental statutory data includes the company action level RBC ratio
for GLIC and its consolidatinglife insurance subsidiaries as well as combined
statutory
pre-tax
earnings from the principal U.S. life insurance companies, GLIC, GLAIC and
GLICNY. Statutory
pre-tax
earnings represent the net gain from operations, including the impact from
in-force
rate actions, before dividends to policyholders, refunds to members and
federal income taxes and before realized capitalgains or (losses). The
combined product level statutory
pre-tax
earnings are grouped on a consistent basis as those provided on page six of
the statutory Annual Statements. Management uses and provides thissupplemental
statutory data because it believes it provides a useful measure of, among
other things, statutory
pre-tax
earnings and the adequacy of capital. Management uses this data to measure
against itspolicy to manage the U.S. life insurance companies with internally
generated capital.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.Forward-looking
statements may be identified by words such as "expects," "intends,"
"anticipates," "plans," "believes," "seeks," "estimates," "will" or words of
similarmeaning and include, but are not limited to, statements regarding the
outlook for the company's future business and financial performance. Examples
of forward-looking statements include statements the company makes relating to
potentialdividends or share repurchases; future return of capital by Enact
Holdings, Inc. (Enact Holdings), including share repurchases, and quarterly
and special dividends; the cumulative economic benefit of approved and future
rate actions contemplated inthe company's long-term care insurance multi-year
in-force
rate action plan; future financial performance, including the expectation that
adverse quarterly variances between actual and expected experiencecould
persist resulting in future remeasurement losses in the company's long-term
care insurance business; future financial condition of the company's
businesses; liquidity and new lines of business or new products and services,
such asthose the company is pursuing with its CareScout business (CareScout);
as well as statements the company makes regarding the potential occurrence of
a recession.
Forward-looking statements are based on management's current expectations and
assumptions, which are subject to inherent uncertainties, risks and changesin
circumstances that are difficult to predict. Actual outcomes and results may
differ materially from those in the forward-looking statements due to global
political, economic, inflation, business, competitive, market, regulatory and
other factorsand risks, including but not limited to, the following:
. the inability to successfully launch new lines of business, including long-term care
insurance and other productsand services the company is pursuing with CareScout;
. the company's failure to maintain self-sustainability of its legacy life insurance
subsidiaries, includingas a result of the inability to achieve desired levels of
in-force
rate actions and/or the timing of its future premium rate increases and associated benefit reductions taking longer to
achieve than originallyassumed; other regulatory actions negatively impacting the company's life insurance businesses;
. inaccuracies or changes in estimates, assumptions, methodologies,
valuations, projections and/or models, whichresult in inadequate
reserves or other adverse results (including as a result of any
changes in connection with quarterly, annual or other reviews);
. the impact on holding company liquidity caused by an inability to receive dividends or any other returns ofcapital from
Enact Holdings, and limited sources of capital and financing and the need to seek additional capital on unfavorable terms;
. adverse changes to the structure or requirements of Federal National Mortgage Association
(Fannie Mae), FederalHome Loan Mortgage Corporation (Freddie Mac) or the U.S.
mortgage insurance market; an increase in the number of loans insured through federal
government mortgage insurance programs, including those offered by the Federal Housing
Administration; theinability of Enact Holdings and/or its U.S. mortgage insurance
subsidiaries to continue to meet the requirements mandated by PMIERs (or any adverse changes
thereto), inability to meet minimum statutory capital requirements of applicable
regulatorsor the mortgage insurer eligibility requirements of Fannie Mae or Freddie Mac;
8
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. changes in economic, market and political conditions including as a result of elevated
inflation, labor shortagesand elevated interest rates, which could heighten the
risk of a future recession; unanticipated financial events, which could lead to
market-wide liquidity problems and other significant market disruption resulting in
losses, defaults or creditrating downgrades of other financial institutions; deterioration
in economic conditions, a recession or a decline in home prices, all of which
could be driven by many potential factors; political and economic instability or
changes in governmentpolicies, and fluctuations in international securities markets;
. downgrades in financial strength and credit ratings and potential
adverse impacts to liquidity; counterpartycredit risks; defaults by
counterparties to reinsurance arrangements or derivative instruments;
defaults or other events impacting the value of invested assets;
. changes in tax rates or tax laws, or changes in accounting and reporting standards;
. litigation and regulatory investigations or other actions, including commercial and contractual disputes withcounterparties;
. the inability to retain, attract and motivate qualified employees or senior management;
. the loss of significant key customers and distribution relationships by Enact Holdings;
. the impact from deficiencies in the company's disclosure controls and procedures or internal control overfinancial reporting;
. the occurrence of natural or
man-made
disasters, including geopoliticaltensions and war (including the Russian invasion of Ukraine and
the Israel-Hamas conflict), a public health emergency, including pandemics, or climate change;
. the inability to effectively manage information technology systems (including
artificial intelligence), cyberincidents or other failures, disruptions
or security breaches of the company or its third-party vendors, as well as
unknown risks and uncertainties associated with artificial intelligence;
. the inability of third-party vendors to meet their obligations to the company;
. the lack of availability, affordability or adequacy of reinsurance to protect the company against losses;
. a decrease in the volume of high
loan-to-value
home mortgage originations or an increase in the volume of mortgage insurance cancellations;
. unanticipated claims against Enact Holdings' delegated underwriting program;
. the impact of medical advances such as genetic research and diagnostic imaging,
emerging new technology,including artificial intelligence and related legislation; and
. other factors described in the risk factors contained in Item 1A of the company's Annual Report on Form
10-K
filed with the U.S. Securities and Exchange Commission on February 29, 2024.
The companyprovides additional information regarding these risks and
uncertainties in its Annual Report on Form
10-K.
Unlisted factors may present significant additional obstacles to the
realization of forward-lookingstatements. Accordingly, for the foregoing
reasons, the company cautions you against relying on any forward-looking
statements. The company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of newinformation, future
developments or otherwise, except as may be required under applicable
securities laws.
9
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Condensed Consolidated Statements of Income
(Amounts in millions, except per share amounts)
(Unaudited)
Three Three months
months ended ended
March 31, December 31,
2024 2023 2023
Revenues:
Premiums $ 875 $ 915 $ 904
Net investment 782 787 810
income
Net investment 49 (11 ) 38
gains (losses)
Policy fees and 158 163 159
other income
Total 1,864 1,854 1,911
revenues
Benefits and
expenses:
Benefits and other changes 1,203 1,176 1,233
in policy reserves
Liability remeasurement (8 ) (15 ) 416
(gains) losses
Changes in fair value of market (23 ) 17 14
risk benefits and associated hedges
Interest 125 126 124
credited
Acquisition and operating 236 240 248
expenses, net of deferrals
Amortization of deferred 65 72 63
acquisition costs and intangibles
Interest 30 29 30
expense
Total benefits 1,628 1,645 2,128
and expenses
Income (loss) from continuing 236 209 (217 )
operations before income taxes
Provision (benefit) 66 55 (36 )
for income taxes
Income (loss) from 170 154 (181 )
continuing operations
Loss from discontinued (1 ) -- (2 )
operations, net of taxes
Net income 169 154 (183 )
(loss)
Less: net income attributable 30 32 29
to noncontrolling interests
Net income (loss) available to Genworth $ 139 $ 122 $ (212 )
Financial, Inc.'s common stockholders
Income (loss) from continuing operations available to
Genworth Financial, Inc.'s commonstockholders per share:
Basic $ 0.32 $ 0.25 $ (0.47 )
Diluted $ 0.31 $ 0.24 $ (0.47 )
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders pershare:
Basic $ 0.31 $ 0.25 $ (0.47 )
Diluted $ 0.31 $ 0.24 $ (0.47 )
Weighted-average common
shares outstanding:
Basic 443.0 492.3 449.4
Diluted 450.3 500.1 449.4
6
10
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Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)
(Amounts in millions, except per share amounts)
(Unaudited)
Three Three
months ended months ended
March 31, December 31,
2024 2023 2023
Net income (loss) available to Genworth $ 139 $ 122 $ (212 )
Financial, Inc.'s common stockholders
Add: net income attributable 30 32 29
to noncontrolling interests
Net income 169 154 (183 )
(loss)
Less: loss from discontinued (1 ) -- (2 )
operations, net of taxes
Income (loss) from 170 154 (181 )
continuing operations
Less: net income from continuing operations 30 32 29
attributable to noncontrolling interests
Income (loss) from continuing operations available 140 122 (210 )
to Genworth Financial, Inc.'s commonstockholders
Adjustments to income (loss) from continuing operations
available to Genworth Financial,Inc.'s common stockholders:
Net investment (50 ) 11 (38 )
(gains) losses, net
13
Changes in fair value of market risk benefits attributable (26 ) 14 13
to interest rates, equity markets andassociated hedges
14
(Gains) losses on early (1 ) (1 ) (1 )
extinguishment of debt
Expenses related 7 3 --
to restructuring
Taxes on 15 (5 ) 6
adjustments
Adjusted operating $ 85 $ 144 $ (230 )
income (loss)
Adjusted operating
income (loss):
Enact $ 135 $ 143 $ 129
segment
Long-Term Care 3 23 (151 )
Insurance segment
Life and Annuities
segment:
Life (33 ) (27 ) (206 )
Insurance
Fixed 11 14 9
Annuities
Variable 7 9 14
Annuities
Total Life and (15 ) (4 ) (183 )
Annuities segment
Corporate (38 ) (18 ) (25 )
and Other
Adjusted operating $ 85 $ 144 $ (230 )
income (loss)
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders pershare:
Basic $ 0.31 $ 0.25 $ (0.47 )
Diluted $ 0.31 $ 0.24 $ (0.47 )
Adjusted operating
income (loss) per share:
Basic $ 0.19 $ 0.29 $ (0.51 )
Diluted $ 0.19 $ 0.29 $ (0.51 )
Weighted-average common
shares outstanding:
Basic 443.0 492.3 449.4
Diluted 450.3 500.1 449.4
6
11
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Footnote Definitions
1 Long-term care insurance.
2 All references reflect amounts available to Genworth's common stockholders.
3 This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles(GAAP). See the Use of
Non-GAAP
Measures section of this press release for additional information.
4 Risk-based capital ratio based on company action level for GLIC consolidated.
5 Company estimate for the first quarter of 2024 due to timing of the preparation of the filing(s).
6 Under applicable accounting guidance, companies in a loss position are required to use basic weighted-averagecommon
shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the company's loss from
continuing operations available to Genworth Financial, Inc.'s common stockholders for the three months endedDecember
31, 2023, the company was required to use basic weighted-average common shares outstanding in the calculation of
diluted loss per share as the inclusion of shares for performance stock units, restricted stock units and otherequity-based
awards of 6.3 million would have been antidilutive to the calculation. If the company had not incurred a
loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the three months
endedDecember 31, 2023, dilutive potential weighted-average common shares outstanding would have been 455.7 million.
7 Reflects Genworth's ownership of equity including accumulated other comprehensive income and excludingnoncontrolling interests of
$873 million, $855 million and $793 million in the first quarter of 2024 and the fourth and first quarters of 2023, respectively.
8 The Private Mortgage Insurer Eligibility Requirements (PMIERs) sufficiency ratio is
calculated as availableassets divided by required assets as defined within PMIERs.
9 Genworth's principal U.S. life insurance companies: GLIC, GLAIC and GLICNY.
10 Net gain from operations before dividends to policyholders, refunds to members
and federal income taxes forGenworth Life Insurance Company (GLIC), Genworth
Life and Annuity Insurance Company (GLAIC) and Genworth Life Insurance
Company of New York (GLICNY), and before realized capital gains or (losses).
11 Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the
issuer ofoutstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc.
12 Genworth Holdings, Inc. held no short-term investments or U.S. government
securities as of March 31, 2024,December 31, 2023 and March 31, 2023.
13 Net investment (gains) losses were adjusted for the portion attributable to
noncontrolling interests of$1 million for the three months ended March 31, 2024.
14 Changes in fair value of market risk benefits and associated hedges were
adjusted to exclude changes inreserves, attributed fees and benefit
payments of $(3) million for both the three months ended March 31, 2024
and 2023 and $(1) million for the three months ended December 31, 2023.
12
Exhibit 99.2
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
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
Quarterly Results by Business
Adjusted Operating Income and New Insurance Written--EnactSegment 15-20
Adjusted Operating Income (Loss) and Statutory Impact of In-Force Rate Actions--Long-Term Care Insurance Segment 22-23
Adjusted Operating Income (Loss)--Life and AnnuitiesSegment 25-28
Adjusted Operating Loss--Corporate and Other 30
Additional Financial Data
Investments Summary 32
Fixed Maturity Securities Summary 33
U.S. GAAP Net Investment Income Yields 34
Net Investment Gains (Losses)--Detail 35
Reconciliations of Non-GAAP Measures
Reconciliation of Operating Return On Equity (ROE) 37
Reconciliation of Consolidated Expense Ratio 38
Reconciliation of Reported Yield to Core Yield 39
Note:
Unlessotherwise 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), adjustedoperating 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 toGenworth 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 commonstockholders per share,
book value available to Genworth Financial, Inc.'s common stockholders and
book value available to Genworth Financial, Inc.'s common stockholders per
share, respectively.
2
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Dear Investor,
Thank you for your continued interest in Genworth Financial, Inc.
Please see the accompanying press release and summary presentation posted to
the company's website at
http://investor.genworth.com
for additionalinformation regarding its first quarter 2024 earnings results.
Investors are encouraged to listen to the company's earnings call on the first
quarter2024 results at 9:00 a.m. (ET) on May 2, 2024.
Regards,
SarahCrews, Investor Relations
InvestorInfo@genworth.com
3
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
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). Management evaluates segment performance and
allocates resources on the basis of adjusted operating income (loss). The
companydefines adjusted operating income (loss) as income (loss) from
continuing operations excluding the after-tax effects of income (loss)
attributable to noncontrolling interests, net investment gains (losses),
changes in fair value of market riskbenefits and associated hedges, gains
(losses) on the sale of businesses, gains (losses) on the early extinguishment
of debt, restructuring costs and infrequent or unusual non-operating items. 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'sdiscret
ion and are influenced by market opportunities, as well as asset-liability
matching considerations. The company excludes net investment gains (losses),
changes in fair value of market risk benefits and associated hedges, gains
(losses) on thesale of businesses, gains (losses) on the early extinguishment
of debt, restructuring costs and infrequent or unusual non-operating items
from adjusted operating income (loss) because, in the company's opinion, they
are not indicative ofoverall operating performance.
While some of these items may be significant components of net income (loss)
available to Genworth Financial, Inc.'scommon stockholders determined 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),among
other key performance indicators, 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) availableto 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, thecompany's definition of adjusted
operating income (loss) may differ from the definitions used by other
companies.
Adjustments to reconcile netincome (loss) available to Genworth Financial,
Inc.'s common stockholders to adjusted operating income (loss) assume a 21%
tax rate and are net of the portion attributable to noncontrolling interests.
Changes in fair value of market riskbenefits and associated hedges are
adjusted to exclude changes in reserves, attributed fees and benefit payments.
The table on page 9 of this financialsupplement 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 inaccordance 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 activityand
profitability drivers. These additional non-GAAP measures are on pages 37 to
39 of this financial supplement.
Statutory Accounting Data
The company presents certain supplemental statutory data for Genworth Life
Insurance Company (GLIC) and its consolidating life insurance subsidiaries
that hasbeen prepared on the basis of statutory accounting principles (SAP).
GLIC and its consolidating life insurance subsidiaries file financial
statements with state insurance regulatory authorities and the National
Association of Insurance Commissionersthat are prepared using SAP, an
accounting basis either prescribed or permitted by such authorities. Due to
differences in methodology between SAP and U.S. GAAP, the values for assets,
liabilities and equity, and the recognition of income andexpenses, reflected
in financial statements prepared in accordance with U.S. GAAP are materially
different from those reflected in financial statements prepared under SAP.
This supplemental statutory data should not be viewed as an alternative to,or
used in lieu of, U.S. GAAP.
This supplemental statutory data includes the impact from in-force rate
actions on pre-tax long-term care insurancestatutory earnings. Statutory
pre-tax earnings represent the net gain from operations, including the impact
from in-force rate actions, before dividends to policyholders, refunds to
members and federal income taxes and before realized capital gainsor (losses).
Management uses and provides this supplemental statutory data because it
believes it provides a useful measure of, among other things, statutory
pre-tax earnings and the adequacy of capital. Management uses this data to
measure againstits policy to manage the U.S. life insurance companies with
internally generated capital.
4
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Results of Operations and Selected Operating Performance Measures
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
ofthat 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.
The annually-determined tax rates and adjustments to each segment's provision
for income taxes are estimates which are subject to review and could
changefrom year to year. U.S. GAAP generally requires an annualized effective
tax rate to be used for interim reporting periods, utilizing projections of
full year results. However, in certain circumstances, it is appropriate to
record the actualeffective rate for the period if a reliable full year
estimate cannot be made. For the three months ended March 31, 2023, June 30,
2023 and September 30, 2023, the company utilized the actual effective tax
rate for the interim period to record theprovision for income taxes for its
Long-Term Care Insurance and Life and Annuities segments and the annualized
projected effective tax rate for its Enact segment and Corporate and Other.
This financial supplement contains selected operating performance measures
including "new insurance written," "insurance in-force" and"risk in-force,"
which are commonly used in the insurance industry as measures of operating
performance.
Management regularly monitors andreports new insurance written for the
company's Enact segment as a measure of volume of new business generated in a
period. The company considers new insurance written to be a measure of the
operating performance of its Enact segment because itrepresents a measure of
new sales of mortgage insurance policies during a specified period, rather
than a measure of 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
theaggregate unpaid principal balance as of the respective reporting date for
loans insured by the company's U.S. mortgage insurance subsidiaries. Risk
in-force is based on the coverage percentage applied to the estimated current
outstanding loanbalance. These metrics are presented on a direct basis and
exclude reinsurance. The company considers insurance in-force and risk
in-force to be measures of the operating performance of its Enact segment
because they represent measures of the sizeof 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
Enact segment, which is the ratio of benefits and other changes in
policyreserves to net earned premiums. The company considers the loss ratio to
be a measure of underwriting performance and helps to enhance the
understanding of the operating performance of the Enact segment.
These operating performance measures enable the company to compare its
operating performance across periods without regard to revenues or
profitabilityrelated to policies or contracts sold in prior periods or from
investments or other sources.
5
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Financial Highlights
(amounts in millions, except per share data)
Balance March December September June 30, March
Sheet Data 31, 31, 30, 2023 31,
2024 2023 2023 2023
Total Genworth Financial, Inc.'s stockholders' equity, $ 10,100 $ 10,035 $ 10,276 $ 10,321 $ 10,292
excluding accumulated othercomprehensive income (loss)
Total accumulated other (2,094 ) (2,555 ) (2,220 ) (2,861 ) (2,853 )
comprehensive income(loss)
(1)
Total Genworth Financial, $ 8,006 $ 7,480 $ 8,056 $ 7,460 $ 7,439
Inc.'s stockholders' equity
Book value $ 18.21 $ 16.74 $ 17.80 $ 15.98 $ 15.28
per share
Book value per share, excluding accumulated $ 22.98 $ 22.46 $ 22.70 $ 22.11 $ 21.14
other comprehensive income (loss)
Common shares outstanding as 439.6 446.8 452.7 466.8 486.9
of the balance sheet date
Twelve months ended
Twelve Month Rolling March December September June 30, March
Average ROE 31, 31, 30, 2023 31,
2024 2023 2023 2023
U.S. GAAP 0.9 % 0.7 % 6.6 % 7.7 % 8.0 %
Basis ROE
Operating (0.2 )% 0.4 % 6.0 % 7.2 % 8.0 %
ROE
(2)
Three months ended
Quarterly March December September June 30, March
Average ROE 31, 31, 30, 2023 31,
2024 2023 2023 2023
U.S. GAAP 5.5 % (8.4 )% 1.1 % 5.3 % 4.8 %
Basis ROE
Operating 3.4 % (9.1 )% 1.6 % 3.3 % 5.6 %
ROE
(2)
Basic and Three months
Diluted Shares ended
March 31,
2024
Weighted-average common shares used in 443.0
basic earnings per share calculations
Potentially dilutive
securities:
Performance stock units, restricted stock 7.3
units and other equity-based awards
Weighted-average common shares used in 450.3
diluted earnings per share calculations
(1) As of March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023,
totalaccumulated other comprehensive income (loss) includes $(334) million, $(1,439) million, $1,826 million,
$(964) million and $(1,628) million, net of taxes, respectively, related to changes in the discount
rate used to remeasure the liability forfuture policy benefits and related reinsurance recoverables.
(2) See page 37 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.
6
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Consolidated Quarterly Results
7
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Consolidated Net Income (Loss) by Quarter
(amounts in millions, except per share amounts)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
REVENUES:
Premiums $ 875 $ 904 $ 915 $ 902 $ 915 $ 3,636
Net investment 782 810 801 785 787 3,183
income
Net investment 49 38 (43 ) 39 (11 ) 23
gains (losses)
Policy fees and 158 159 158 166 163 646
other income
Total 1,864 1,911 1,831 1,892 1,854 7,488
revenues
BENEFITS AND
EXPENSES:
Benefits and other changes 1,203 1,233 1,199 1,175 1,176 4,783
in policy reserves
Liability remeasurement (8 ) 416 116 70 (15 ) 587
(gains) losses
Changes in fair value of market (23 ) 14 (24 ) (19 ) 17 (12 )
risk benefits and associated hedges
Interest 125 124 127 126 126 503
credited
Acquisition and operating 236 248 228 226 240 942
expenses, net of deferrals
Amortization of deferred 65 63 65 64 72 264
acquisition costs and intangibles
Interest 30 30 30 29 29 118
expense
Total benefits 1,628 2,128 1,741 1,671 1,645 7,185
and expenses
INCOME (LOSS) FROM CONTINUING 236 (217 ) 90 221 209 303
OPERATIONS BEFORE INCOME TAXES
Provision (benefit) 66 (36 ) 30 55 55 104
for income taxes
INCOME (LOSS) FROM 170 (181 ) 60 166 154 199
CONTINUING OPERATIONS
Income (loss) from discontinued (1 ) (2 ) -- 2 -- --
operations, net of taxes
(1)
NET INCOME 169 (183 ) 60 168 154 199
(LOSS)
Less: net income attributable 30 29 31 31 32 123
to noncontrolling interests
NET INCOME (LOSS) AVAILABLE TO GENWORTH $ 139 $ (212 ) $ 29 $ 137 $ 122 $ 76
FINANCIAL, INC.'S COMMON STOCKHOLDERS
Earnings (Loss)
Per Share Data:
Income (loss) from continuing operations available to
Genworth Financial, Inc.'s commonstockholders per share
Basic $ 0.32 $ (0.47 ) $ 0.06 $ 0.28 $ 0.25 $ 0.16
Diluted $ 0.31 $ (0.47 ) $ 0.06 $ 0.28 $ 0.24 $ 0.16
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders pershare
Basic $ 0.31 $ (0.47 ) $ 0.06 $ 0.29 $ 0.25 $ 0.16
Diluted $ 0.31 $ (0.47 ) $ 0.06 $ 0.29 $ 0.24 $ 0.16
Weighted-average common
shares outstanding
Basic 443.0 449.4 460.5 473.2 492.3 468.8
Diluted 450.3 449.4 466.0 478.1 500.1 474.9
(2)
(1) Income (loss) from discontinued operations primarily relates to a settlement agreement involving
thecompany's former lifestyle protection insurance business that was sold on December 1, 2015.
(2) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-averagecommon
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 December 31, 2023, the company was required
to use basic weighted-average common sharesoutstanding in the calculation of diluted loss per share for
the three months ended December 31, 2023, as the inclusion of shares for performance stock units, restricted
stock units and other equity-based awards of 6.3 million would have beenantidilutive to the calculation.
If the company had not incurred a loss from continuing operations for the three months ended December
31, 2023, dilutive potential weighted-average common shares outstanding would have been 455.7 million.
8
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Reconciliation of Net Income (Loss) to Adjusted OperatingIncome (Loss)
(amounts in millions, except per share amounts)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
NET INCOME (LOSS) AVAILABLE TO GENWORTH $ 139 $ (212 ) $ 29 $ 137 $ 122 $ 76
FINANCIAL, INC.'S COMMON STOCKHOLDERS
Add: net income attributable 30 29 31 31 32 123
to noncontrolling interests
NET INCOME 169 (183 ) 60 168 154 199
(LOSS)
Less: income (loss) from discontinued (1 ) (2 ) -- 2 -- --
operations, net of taxes
INCOME (LOSS) FROM 170 (181 ) 60 166 154 199
CONTINUING OPERATIONS
Less: net income from continuing operations 30 29 31 31 32 123
attributable to noncontrolling interests
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE 140 (210 ) 29 135 122 76
TO GENWORTH FINANCIAL, INC.'S COMMONSTOCKHOLDERS
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS
AVAILABLE TO GENWORTH FINANCIAL,INC.'S COMMON STOCKHOLDERS:
Net investment (50 ) (38 ) 43 (41 ) 11 (25 )
(gains) losses, net
(1)
Changes in fair value of market risk benefits attributable (26 ) 13 (26 ) (23 ) 14 (22 )
to interest rates, equity markets andassociated hedges
(2)
(Gains) losses on early (1 ) (1 ) -- -- (1 ) (2 )
extinguishment of debt
Expenses related 7 -- -- 1 3 4
to restructuring
Taxes on 15 6 (4 ) 13 (5 ) 10
adjustments
ADJUSTED OPERATING $ 85 $ (230 ) $ 42 $ 85 $ 144 $ 41
INCOME (LOSS)
ADJUSTED OPERATING
INCOME (LOSS):
Enact $ 135 $ 129 $ 134 $ 146 $ 143 $ 552
segment
Long-Term Care 3 (151 ) (71 ) (43 ) 23 (242 )
Insurance segment
Life and Annuities
segment:
Life (33 ) (206 ) (25 ) (17 ) (27 ) (275 )
Insurance
Fixed 11 9 17 10 14 50
Annuities
Variable 7 14 5 9 9 37
Annuities
Total Life and (15 ) (183 ) (3 ) 2 (4 ) (188 )
Annuities segment
Corporate (38 ) (25 ) (18 ) (20 ) (18 ) (81 )
and Other
ADJUSTED OPERATING $ 85 $ (230 ) $ 42 $ 85 $ 144 $ 41
INCOME (LOSS)
Earnings (Loss)
Per Share Data:
Net income (loss) available to Genworth
Financial, Inc.'s common stockholders pershare
Basic $ 0.31 $ (0.47 ) $ 0.06 $ 0.29 $ 0.25 $ 0.16
Diluted $ 0.31 $ (0.47 ) $ 0.06 $ 0.29 $ 0.24 $ 0.16
Adjusted operating
income (loss) per share
Basic $ 0.19 $ (0.51 ) $ 0.09 $ 0.18 $ 0.29 $ 0.09
Diluted $ 0.19 $ (0.51 ) $ 0.09 $ 0.18 $ 0.29 $ 0.09
Weighted-average common
shares outstanding
Basic 443.0 449.4 460.5 473.2 492.3 468.8
Diluted 450.3 449.4 466.0 478.1 500.1 474.9
(3)
(1) Net investment (gains) losses were adjusted for the portion attributable
to noncontrolling interests (see page35 for reconciliation).
(2) Changes in fair value of market risk benefits and associated hedges were adjusted to exclude
changes inreserves, attributed fees and benefit payments (see page 25 for reconciliation).
(3) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-averagecommon
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 December 31, 2023, the company was required
to use basic weighted-average common sharesoutstanding in the calculation of diluted loss per share for
the three months ended December 31, 2023, as the inclusion of shares for performance stock units, restricted
stock units and other equity-based awards of 6.3 million would have beenantidilutive to the calculation.
If the company had not incurred a loss from continuing operations for the three months ended December
31, 2023, dilutive potential weighted-average common shares outstanding would have been 455.7 million.
9
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Consolidated Balance Sheets
(amounts in millions)
March December September June 30, March
31, 31, 30, 2023 31,
2024 2023 2023 2023
ASSETS
Investments:
Fixed maturity securities $ 46,065 $ 46,781 $ 43,968 $ 46,070 $ 47,381
available-for-sale, at fair value
(1)
Equity securities, 427 396 363 378 364
at fair value
Commercial 6,748 6,829 6,818 6,876 6,915
mortgage loans
(2)
Less: Allowance (29 ) (27 ) (25 ) (24 ) (24 )
for credit losses
Commercial mortgage 6,719 6,802 6,793 6,852 6,891
loans, net
Policy 2,219 2,220 2,233 2,270 2,133
loans
Limited 2,949 2,821 2,699 2,585 2,456
partnerships
Other invested 683 731 645 648 617
assets
Total 59,062 59,751 56,701 58,803 59,842
investments
Cash, cash equivalents 1,952 2,215 1,993 2,173 1,752
and restricted cash
Accrued 707 647 620 553 700
investment income
Deferred 1,934 1,988 2,042 2,096 2,150
acquisition costs
Intangible 197 198 199 201 203
assets
Reinsurance 18,315 19,054 17,623 19,113 19,606
recoverable
Less: Allowance (27 ) (29 ) (28 ) (64 ) (64 )
for credit losses
Reinsurance 18,288 19,025 17,595 19,049 19,542
recoverable, net
Other 516 489 453 445 478
assets
Deferred 1,839 1,952 1,580 1,954 2,002
tax asset
Market risk 52 43 39 37 28
benefit assets
Separate 4,645 4,509 4,244 4,533 4,479
account assets
Total $ 89,192 $ 90,817 $ 85,466 $ 89,844 $ 91,176
assets
(1) Amortized cost of $49,281 million, $49,365 million, $49,855 million, $49,864 million and $50,461 million as
ofMarch 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively,
and allowance for credit losses of $7 million, $7 million, $6 million, $4 million and $15 million as of
March 31, 2024, December 31, 2023,September 30, 2023, June 30, 2023 and March 31, 2023, respectively.
(2) Net of unamortized balance of loan origination fees and costs of $4 million as of March
31, 2024, December 31,2023, September 30, 2023, June 30, 2023 and March 31, 2023.
10
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Consolidated Balance Sheets
(amounts in millions)
March December September June 30, March
31, 31, 30, 2023 31,
2024 2023 2023 2023
LIABILITIES
AND EQUITY
Liabilities:
Future policy $ 55,545 $ 57,655 $ 51,740 $ 56,443 $ 57,531
benefits
Policyholder 15,315 15,540 15,590 15,922 16,202
account balances
Market risk benefit 528 625 579 666 761
liabilities
Liability for policy 673 652 631 628 665
and contract claims
Unearned 139 149 162 175 189
premiums
Other 1,889 1,768 2,038 1,607 1,510
liabilities
Long-term 1,579 1,584 1,602 1,601 1,600
borrowings
Separate account 4,645 4,509 4,244 4,533 4,479
liabilities
Liabilities related to -- -- 2 2 7
discontinuedoperations
(1)
Total 80,313 82,482 76,588 81,577 82,944
liabilities
Equity:
Common 1 1 1 1 1
stock
Additional 11,873 11,884 11,877 11,869 11,863
paid-in capital
Accumulated other
comprehensive income (loss):
Change in the discount rate used (334 ) (1,439 ) 1,826 (964 ) (1,628 )
to measure future policy benefits
All (1,760 ) (1,116 ) (4,046 ) (1,897 ) (1,225 )
other
Total accumulated other (2,094 ) (2,555 ) (2,220 ) (2,861 ) (2,853 )
comprehensive income (loss)
Retained 1,352 1,213 1,426 1,398 1,261
earnings
Treasury (3,126 ) (3,063 ) (3,028 ) (2,947 ) (2,833 )
stock, at cost
Total Genworth Financial, 8,006 7,480 8,056 7,460 7,439
Inc.'s stockholders' equity
Noncontrolling 873 855 822 807 793
interests
Total 8,879 8,335 8,878 8,267 8,232
equity
Total liabilities $ 89,192 $ 90,817 $ 85,466 $ 89,844 $ 91,176
and equity
(1) Liabilities related to discontinued operations relates to a liability recorded in connection with a settlementagreement reached
with AXA and other unrelated liabilities involving the sale of the company's former lifestyle protection insurance business.
11
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Consolidated Balance Sheet by Segment
(amounts in millions)
March 31, 2024
Enact Long-Term Life and Corporate Total
Care Annuities and
Insurance Other
(1)
ASSETS
Cash and $ 6,045 $ 35,652 $ 18,552 $ 1,472 $ 61,721
investments
Deferred acquisition costs 46 886 1,184 15 2,131
and intangible assets
Reinsurance 2 7,228 11,058 -- 18,288
recoverable, net
Deferred tax and 210 1,681 275 189 2,355
other assets
Market risk -- -- 52 -- 52
benefit assets
Separate -- -- 4,645 -- 4,645
account assets
Total $ 6,303 $ 45,447 $ 35,766 $ 1,676 $ 89,192
assets
LIABILITIES
AND EQUITY
Liabilities:
Future policy $ -- $ 42,339 $ 13,206 $ -- $ 55,545
benefits
Policyholder -- -- 15,315 -- 15,315
account balances
Market risk benefit -- -- 528 -- 528
liabilities
Liability for policy 532 -- 134 7 673
and contract claims
Unearned 139 -- -- -- 139
premiums
Other 167 893 293 536 1,889
liabilities
Borrowings 746 -- -- 833 1,579
Separate account -- -- 4,645 -- 4,645
liabilities
Total 1,584 43,232 34,121 1,376 80,313
liabilities
Equity:
Allocated equity, excluding accumulated 4,041 2,727 2,552 780 10,100
other comprehensive income (loss)
Allocated accumulated other (195 ) (512 ) (907 ) (480 ) (2,094 )
comprehensive income (loss)
Total Genworth Financial, 3,846 2,215 1,645 300 8,006
Inc.'s stockholders' equity
Noncontrolling 873 -- -- -- 873
interests
Total 4,719 2,215 1,645 300 8,879
equity
Total liabilities $ 6,303 $ 45,447 $ 35,766 $ 1,676 $ 89,192
and equity
(1) Includes inter-segment eliminations and other businesses, including start-up growth initiatives
and certaininternational businesses, that are managed outside the operating segments.
12
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Consolidated Balance Sheet by Segment
(amounts in millions)
December 31, 2023
Enact Long-Term Life and Corporate Total
Care Annuities and
Insurance Other
(1)
ASSETS
Cash and $ 5,964 $ 35,923 $ 19,032 $ 1,694 $ 62,613
investments
Deferred acquisition costs 44 900 1,228 14 2,186
and intangible assets
Reinsurance 1 7,572 11,452 -- 19,025
recoverable, net
Deferred tax and 184 1,800 253 204 2,441
other assets
Market risk -- -- 43 -- 43
benefit assets
Separate -- -- 4,509 -- 4,509
account assets
Total $ 6,193 $ 46,195 $ 36,517 $ 1,912 $ 90,817
assets
LIABILITIES
AND EQUITY
Liabilities:
Future policy $ -- $ 43,929 $ 13,726 $ -- $ 57,655
benefits
Policyholder -- -- 15,540 -- 15,540
account balances
Market risk benefit -- -- 625 -- 625
liabilities
Liability for policy 518 -- 126 8 652
and contract claims
Unearned 149 -- -- -- 149
premiums
Other 141 775 273 579 1,768
liabilities
Borrowings 745 -- -- 839 1,584
Separate account -- -- 4,509 -- 4,509
liabilities
Total 1,553 44,704 34,799 1,426 82,482
liabilities
Equity:
Allocated equity, excluding accumulated 3,974 2,572 2,552 937 10,035
other comprehensive income (loss)
Allocated accumulated other (189 ) (1,081 ) (834 ) (451 ) (2,555 )
comprehensive income (loss)
Total Genworth Financial, 3,785 1,491 1,718 486 7,480
Inc.'s stockholders' equity
Noncontrolling 855 -- -- -- 855
interests
Total 4,640 1,491 1,718 486 8,335
equity
Total liabilities $ 6,193 $ 46,195 $ 36,517 $ 1,912 $ 90,817
and equity
(1) Includes inter-segment eliminations and other businesses, including start-up growth initiatives
and certaininternational businesses, that are managed outside the operating segments.
13
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Enact Segment
14
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Adjusted Operating Income--Enact Segment
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
REVENUES:
Premiums $ 241 $ 240 $ 243 $ 239 $ 235 $ 957
Net investment 57 57 55 50 46 208
income
Net investment (6 ) (1 ) -- (13 ) -- (14 )
gains (losses)
Policy fees and -- -- 1 1 -- 2
other income
Total 292 296 299 277 281 1,153
revenues
BENEFITS AND
EXPENSES:
Benefits and other changes 20 24 18 (4 ) (11 ) 27
in policy reserves
Acquisition and operating 51 56 52 52 52 212
expenses, net of deferrals
Amortization of deferred 2 3 3 2 3 11
acquisition costs and intangibles
Interest 13 13 13 13 13 52
expense
Total benefits 86 96 86 63 57 302
and expenses
INCOME FROM CONTINUING 206 200 213 214 224 851
OPERATIONS BEFORE INCOME TAXES
Provision for 45 43 48 46 49 186
income taxes
INCOME FROM 161 157 165 168 175 665
CONTINUING OPERATIONS
Less: net income attributable 30 29 31 31 32 123
to noncontrolling interests
INCOME FROM CONTINUING OPERATIONS AVAILABLE TO 131 128 134 137 143 542
GENWORTH FINANCIAL, INC.'S COMMONSTOCKHOLDERS
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE
TO GENWORTH FINANCIAL, INC.'SCOMMON STOCKHOLDERS:
Net investment 5 1 -- 11 -- 12
(gains) losses, net
(1)
Taxes on (1 ) -- -- (2 ) -- (2 )
adjustments
ADJUSTED $ 135 $ 129 $ 134 $ 146 $ 143 $ 552
OPERATING INCOME
Direct Primary New $ 10,526 $ 10,453 $ 14,391 $ 15,083 $ 13,154 $ 53,081
Insurance Written (NIW)
(1) Net investment (gains) losses were adjusted for the portion attributable to noncontrolling
interests of $1million in the first quarter of 2024 and $2 million in the second quarter of 2023.
15
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Direct Primary New Insurance Written Metrics--Enact Segment
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q
Direct % of Direct % of Direct % of Direct % of Direct % of
Primary Direct Primary Direct Primary Direct Primary Direct Primary Direct
NIW Primary NIW Primary NIW Primary NIW Primary NIW Primary
NIW NIW NIW NIW NIW
Payment
Type
Monthly $ 10,034 95 % $ 10,187 98 % $ 14,099 98 % $ 14,774 98 % $ 12,809 97 %
Single 475 5 246 2 269 2 281 2 318 3
Other 17 -- 20 -- 23 -- 28 -- 27 --
(1)
Total $ 10,526 100 % $ 10,453 100 % $ 14,391 100 % $ 15,083 100 % $ 13,154 100 %
Origination
Purchase $ 10,072 96 % $ 10,169 97 % $ 14,073 98 % $ 14,720 98 % $ 12,761 97 %
Refinance 454 4 284 3 318 2 363 2 393 3
Total $ 10,526 100 % $ 10,453 100 % $ 14,391 100 % $ 15,083 100 % $ 13,154 100 %
FICO
Scores
Over $ 5,218 49 % $ 5,086 49 % $ 6,679 46 % $ 6,911 46 % $ 6,004 46 %
760
740 - 1,664 16 1,680 16 2,438 17 2,608 17 2,268 17
759
720 - 1,368 13 1,378 13 1,928 13 2,097 14 1,817 14
739
700 - 990 9 997 10 1,422 10 1,499 10 1,296 10
719
680 - 629 6 664 6 974 7 1,060 7 954 7
699
660 - 388 4 409 4 592 4 568 4 517 4
679
(2)
640 - 193 2 181 2 282 2 260 2 229 2
659
620 - 73 1 53 -- 74 1 76 -- 65 --
639
<620 3 -- 5 -- 2 -- 4 -- 4 --
Total $ 10,526 100 % $ 10,453 100 % $ 14,391 100 % $ 15,083 100 % $ 13,154 100 %
Loan-To-Value
Ratio
95.01% and $ 2,262 21 % $ 1,820 18 % $ 2,677 18 % $ 2,692 18 % $ 2,106 16 %
above
90.01% to 3,876 37 3,759 36 5,431 38 5,743 38 4,928 38
95.00%
85.01% to 3,177 30 3,489 33 4,568 32 4,753 31 4,390 33
90.00%
85.00% and 1,211 12 1,385 13 1,715 12 1,895 13 1,730 13
below
Total $ 10,526 100 % $ 10,453 100 % $ 14,391 100 % $ 15,083 100 % $ 13,154 100 %
Debt-To-Income
Ratio
45.01% and $ 3,165 30 % $ 3,158 30 % $ 4,437 31 % $ 4,467 30 % $ 3,538 27 %
above
38.01% to 3,824 36 3,816 37 4,936 34 5,214 34 4,940 38
45.00%
38.00% and 3,537 34 3,479 33 5,018 35 5,402 36 4,676 35
below
Total $ 10,526 100 % $ 10,453 100 % $ 14,391 100 % $ 15,083 100 % $ 13,154 100 %
(1) Includes loans with annual and split payment types.
(2) Loans with unknown FICO scores are included in the 660-679 category.
16
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Other Metrics--Enact Segment
(dollar amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
Direct Primary Insurance In-Force $ 263,645 $ 262,937 $ 262,014 $ 257,816 $ 252,516
Direct Risk In-Force
Primary $ 67,950 $ 67,529 $ 67,056 $ 65,714 $ 64,106
Pool 67 69 70 73 76
Total Direct Risk In-Force $ 68,017 $ 67,598 $ 67,126 $ 65,787 $ 64,182
Expense Ratio 22 % 25 % 23 % 23 % 23 % 23 %
(1)
Primary Persistency Rate 85 % 86 % 84 % 84 % 85 % 85 %
Combined Risk To Capital Ratio 11.2:1 11.6:1 11.6:1 11.8:1 12.6:1
(2)
EMICO Risk To Capital Ratio 11.2:1 11.6:1 11.6:1 11.9:1 12.7:1
(2),(3)
PMIERs Available Assets $ 4,853 $ 5,006 $ 5,268 $ 5,093 $ 5,357
(4)
PMIERs Required Assets $ 2,970 $ 3,119 $ 3,251 $ 3,135 $ 3,259
(4)
Available Assets Above PMIERsRequirements $ 1,883 $ 1,887 $ 2,017 $ 1,958 $ 2,098
(4)
PMIERs Sufficiency Ratio 163 % 161 % 162 % 162 % 164 %
(4)
Average Primary Loan Size (in thousands) $ 272 $ 270 $ 268 $ 265 $ 262
(1) The ratio of an insurer's general expenses to net earned premiums. In the business,
general expensesconsist of acquisition and operating expenses, net of deferrals, and
amortization of DAC and intangibles. The expense ratio is calculated using whole dollars
and may be different than the ratio calculated using the rounded numbers included herein.
(2) Certain states limit a private mortgage insurer's risk in-force to 25 times the total of the insurer'spolicyholders' 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 isprepared consistent with the presentation
of the statutory financial statements in the combined annual statement of the company's U.S. mortgage insurance subsidiaries.
(3) Enact Mortgage Insurance Corporation (EMICO), the company's principal U.S. mortgage insurance subsidiary.
(4) The Private Mortgage Insurer Eligibility Requirements (PMIERs)
sufficiency ratio is calculated as availableassets 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.
17
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Loss Metrics--Enact Segment
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
Average Direct Primary Paid Claim (in thousands) $ 37.5 $ 37.2 $ 38.7 $ 37.4 $ 39.0
(1)
Average Reserve Per Primary Delinquency (in thousands) $ 24.9 $ 23.3 $ 23.9 $ 25.0 $ 24.8
(2)
Reserves:
Direct primary case $ 486 $ 477 $ 460 $ 452 $ 462
(3)
All other 46 41 41 38 40
(3)
Total Reserves $ 532 $ 518 $ 501 $ 490 $ 502
Beginning Reserves $ 518 $ 501 $ 490 $ 502 $ 519 $ 519
Paid claims (6 ) (7 ) (7 ) (8 ) (6 ) (28 )
Increase (decrease) in reserves 20 24 18 (4 ) (11 ) 27
Ending Reserves $ 532 $ 518 $ 501 $ 490 $ 502 $ 518
Loss Ratio 8 % 10 % 7 % (2 )% (5 )% 3 %
(4)
(1) Paid claims on direct primary case reserves divided by the number of paid claims.
Average direct primary paidclaims in the first quarter of 2024 and the fourth quarter
of 2023 include payments in relation to agreements on non-performing loans. Prior
year amounts have been reclassified to conform to the current year presentation.
(2) Direct primary case reserves divided by primary delinquency count.
(3) Direct primary case reserves exclude loss adjustment expenses (LAE), pool, incurred but not
reported (IBNR) andreinsurance reserves. Other includes LAE, pool, IBNR and reinsurance reserves.
(4) The loss ratio is calculated using whole dollars and may be different
than the ratio calculated using therounded numbers included herein.
18
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Delinquency Metrics--Enact Segment
(dollar amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
Primary
Loans
Primary loans 969,866 974,516 977,832 973,280 965,544
in-force
Primary 19,492 20,432 19,241 18,065 18,633
delinquent loans
Primary 2.01 % 2.10 % 1.97 % 1.86 % 1.93 %
delinquency rate
Beginning Number of 20,432 19,241 18,065 18,633 19,943 19,943
Primary Delinquencies
New 11,395 11,706 11,107 9,205 9,599 41,617
delinquencies
Delinquency (12,160 ) (10,317 ) (9,778 ) (9,609 ) (10,771 ) (40,475 )
cures
Paid (172 ) (186 ) (147 ) (156 ) (126 ) (615 )
claims
Rescissions and (3 ) (12 ) (6 ) (8 ) (12 ) (38 )
claim denials
Ending Number of 19,492 20,432 19,241 18,065 18,633 20,432
Primary Delinquencies
Composition
of Cures
Reported delinquent and 2,726 2,058 1,877 1,661 2,016
cured-intraquarter
Number of missed payments
delinquent prior to cure:
3 payments 5,994 5,235 4,792 4,516 5,238
or less
4 - 11 2,749 2,331 2,265 2,448 2,431
payments
12 payments 691 693 844 984 1,086
or more
Total 12,160 10,317 9,778 9,609 10,771
Primary Delinquencies by
Missed Payment Status
3 payments 9,506 10,166 9,398 8,162 7,876
or less
4 - 11 6,853 6,934 6,381 6,229 6,714
payments
12 payments 3,133 3,332 3,462 3,674 4,043
or more
Primary 19,492 20,432 19,241 18,065 18,633
Delinquencies
March 31,
2024
Direct Primary Direct Direct Reserves
Case Reserves Primary Primary as % of
(1) Case Risk Risk
and Reserves In-Force In-Force
Percentage
Reserved by
Payment Status
3 payments or $ 87 $ 600 14 %
less in default
4 - 11 payments 220 468 47 %
in default
12 payments or 179 197 91 %
more in default
Total $ 486 $ 1,265 38 %
December
31, 2023
Direct Primary Direct Direct Reserves
Case Reserves Primary Primary as % of
(1) Case Risk Risk
and Reserves In-Force In-Force
Percentage
Reserved by
Payment Status
3 payments or $ 88 $ 629 14 %
less in default
4 - 11 payments 205 469 44 %
in default
12 payments or 184 200 92 %
more in default
Total $ 477 $ 1,298 37 %
(1) Direct primary case reserves exclude loss adjustment expenses, pool, incurred but not reported and reinsurancereserves.
19
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Portfolio Quality Metrics--Enact Segment
(amounts in millions)
March 31, 2024
Policy Year % of Direct Direct Primary % of Total Direct % of Total Delinquency
Primary Case Insurance Primary Risk Rate
Reserves In-Force In-Force
(1)
2008 and prior 15 % $ 5,420 2 % $ 1,397 2 % 8.12 %
2009-2016 7 7,368 3 1,943 3 3.74 %
2017 4 5,015 2 1,324 2 3.41 %
2018 6 5,524 2 1,419 2 4.13 %
2019 8 13,126 5 3,403 5 2.70 %
2020 14 42,183 16 11,181 16 1.67 %
2021 22 66,971 25 17,174 25 1.63 %
2022 19 58,051 22 14,629 22 1.61 %
2023 5 49,556 19 12,810 19 0.67 %
2024 -- 10,431 4 2,670 4 0.02 %
Total 100 % $ 263,645 100 % $ 67,950 100 % 2.01 %
March 31, 2024 December 31, 2023 March 31, 2023
Direct Primary % of Total Direct Primary % of Total Direct Primary % of Total
Risk In-Force Risk In-Force Risk In-Force
Loan-to-value ratio
95.01% and above $ 13,250 20 % $ 12,878 19 % $ 11,545 18 %
90.01% to 95.00% 31,881 47 31,781 47 30,589 48
85.01% to 90.00% 19,265 28 19,163 28 18,054 28
85.00% and below 3,554 5 3,707 6 3,918 6
Total $ 67,950 100 % $ 67,529 100 % $ 64,106 100 %
March 31, 2024 December 31, 2023 March 31, 2023
Direct Primary % of Total Direct Primary % of Total Direct Primary % of Total
Risk In-Force Risk In-Force Risk In-Force
Credit Quality
Over 760 $ 28,703 42 % $ 28,363 42 % $ 26,480 41 %
740 - 759 11,167 17 11,096 17 10,418 16
720 - 739 9,669 14 9,621 14 9,126 14
700 - 719 7,629 11 7,623 11 7,406 12
680 - 699 5,524 8 5,557 8 5,481 9
660 - 679 2,908 4 2,908 4 2,809 4
(2)
640 - 659 1,562 3 1,565 3 1,549 3
620 - 639 632 1 635 1 660 1
<620 156 -- 161 -- 177 --
Total $ 67,950 100 % $ 67,529 100 % $ 64,106 100 %
(1) Direct primary case reserves exclude loss adjustment expenses, pool, incurred but not reported and reinsurancereserves.
(2) Loans with unknown FICO scores are included in the 660-679 category.
20
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Long-Term CareInsurance Segment
21
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Adjusted Operating Income (Loss)--Long-Term Care Insurance Segment
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
(1)
REVENUES:
Premiums $ 578 $ 615 $ 621 $ 611 $ 616 $ 2,463
Net investment 464 489 482 470 473 1,914
income
Net investment 63 64 (21 ) 62 9 114
gains (losses)
Total 1,105 1,168 1,082 1,143 1,098 4,491
revenues
BENEFITS AND
EXPENSES:
Benefits and other changes 936 964 953 941 944 3,802
in policy reserves
Liability remeasurement (16 ) 188 104 61 (32 ) 321
(gains) losses
Acquisition and operating 102 116 109 108 119 452
expenses, net of deferrals
Amortization of deferred 17 18 17 18 18 71
acquisition costs and intangibles
Total benefits 1,039 1,286 1,183 1,128 1,049 4,646
and expenses
INCOME (LOSS) FROM CONTINUING 66 (118 ) (101 ) 15 49 (155 )
OPERATIONS BEFORE INCOME TAXES
Provision (benefit) 14 (18 ) (13 ) 10 18 (3 )
for income taxes
INCOME (LOSS) FROM 52 (100 ) (88 ) 5 31 (152 )
CONTINUING OPERATIONS
ADJUSTMENTS TO INCOME (LOSS)
FROM CONTINUING OPERATIONS:
Net investment (63 ) (64 ) 21 (62 ) (9 ) (114 )
(gains) losses
Expenses related 1 -- -- 1 (1 ) --
to restructuring
Taxes on 13 13 (4 ) 13 2 24
adjustments
ADJUSTED OPERATING $ 3 $ (151 ) $ (71 ) $ (43 ) $ 23 $ (242 )
INCOME (LOSS)
Liability remeasurement
(gains) losses:
Cash flow $ (2 ) $ 61 $ (6 ) $ (24 ) $ 21 $ 52
assumption updates
Actual to expected (14 ) 127 110 85 (53 ) 269
experience
Total $ (16 ) $ 188 $ 104 $ 61 $ (32 ) $ 321
Ratio of the liability remeasurement (0.04 )% 0.45 % 0.25 % 0.15 % (0.08 )% 0.77 %
(gains) losses to beginning reserves
(2)
(1) In the fourth quarter of 2023, the liability remeasurement loss of $188
million in the company's long-termcare insurance business reflected an
unfavorable impact from annual cash flow assumption updates of $61
million, including updates to its healthy life assumptions to better align
near-term experience for cost of care, mortality, incidence and lapse.These
adverse assumption updates were partially offset by a favorable
update to disabled life mortality assumptions to reflect an expectation
that mortality will continue at elevated levels in the near term post
the coronaviruspandemic (COVID-19). The company also evaluated its assumptions regarding expectations of future premium
rate increase approvals and benefit reductions and made no significant changes to its 2023 multi-year in-force rate
action plan. However, thecompany did increase its assumption for future approvals and benefit reductions given its
current plans for rate increase filings and historical experience regarding approvals and regulatory support, as well
as benefit reductions and legalsettlement results. In addition, the company updated its assumptions for the third
long-term care insurance legal settlement primarily impacting its Choice II policies, which represents approximately 35%
of the overall block. As previouslydisclosed, the third legal settlement was mostly comprised of profitable uncapped
cohorts and therefore had a muted favorable impact on the liability remeasurement (gain) loss in the income statement.
(2) The ratio of the liability remeasurement (gains) losses to beginning
reserves is calculated by dividing theliability remeasurement
(gains) losses by the beginning liability for future policy benefits
at the locked-in discount rate as of each applicable quarter.
22
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Statutory Impact of In-Force Rate Actions--Long-TermCare Insurance Segment
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
Impact of in-force rate actions on pre-tax statutory earnings
(1)
Premiums, premium tax, commissions and other expenses, net $ 217 $ 232 $ 231 $ 224 $ 219 $ 906
(2)
Reserve changes 114 119 99 104 94 416
(2)
Settlement impacts - reserve changes 240 232 169 97 93 591
Settlement impacts - litigation expenses and settlement payments (109 ) (116 ) (102 ) (54 ) (56 ) (328 )
Settlement impacts, net 131 116 67 43 37 263
Statutory earnings from in-force rate actions $ 462 $ 467 $ 397 $ 371 $ 350 $ 1,585
(1) Includes all implemented in-force rate actions since 2012.
(2) Earned premium and reserve change estimates for statutory earnings reflect certain simplifying
assumptionsthat may vary materially from actual historical results, including but not limited to, a uniform
rate of coinsurance and premium taxes in addition to consistent policyholder behavior over time. Actual
behavior may differ significantly from theseassumptions and these impacts exclude reserve updates.
23
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Life andAnnuities Segment
24
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Adjusted Operating Income (Loss)--Life and Annuities Segment
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
(1)
REVENUES:
Premiums $ 53 $ 47 $ 48 $ 50 $ 62 $ 207
Net 254 256 261 261 264 1,042
investment
income
Net (4 ) (14 ) (18 ) (7 ) (10 ) (49 )
investment
gains
(losses)
Policy 158 160 158 165 163 646
fees and
other
income
Total 461 449 449 469 479 1,846
revenues
BENEFITS
AND
EXPENSES:
Benefits and 250 248 229 240 246 963
other changes
in policy
reserves
Liability 8 228 12 9 17 266
remeasurement
(gains)
losses
Changes in fair (23 ) 14 (24 ) (19 ) 17 (12 )
value of market
risk benefits and
associated hedges
Interest 125 124 127 126 126 503
credited
Acquisition 54 55 54 51 53 213
and operating
expenses, net
of deferrals
Amortization 45 41 45 44 51 181
of deferred
acquisition costs
and intangibles
Total 459 710 443 451 510 2,114
benefits
and
expenses
INCOME (LOSS) 2 (261 ) 6 18 (31 ) (268 )
FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES
Provision -- (56 ) 1 3 (7 ) (59 )
(benefit)
for income
taxes
INCOME 2 (205 ) 5 15 (24 ) (209 )
(LOSS) FROM
CONTINUING
OPERATIONS
ADJUSTMENTS TO
INCOME (LOSS)
FROM CONTINUING
OPERATIONS:
Net 4 14 18 7 10 49
investment
(gains)
losses
Changes in fair value of market (26 ) 13 (26 ) (23 ) 14 (22 )
risk benefits attributable
to interest rates, equity
markets andassociated hedges
(2)
Taxes 5 (5 ) -- 3 (4 ) (6 )
on
adjustments
ADJUSTED $ (15 ) $ (183 ) $ (3 ) $ 2 $ (4 ) $ (188 )
OPERATING
INCOME
(LOSS)
(1)
In the fourth quarter of 2023, the liabilityremeasurement loss of $228 million
was primarily driven by an unfavorable impact from cash flow assumption
updates in the company's life insurance products reflecting updates to persistency
and mortality assumptions. Additional information isincluded on page 26.
(2)
Changes in fairvalue of market risk benefits
and associated hedges were adjusted to
exclude changes in reserves, attributed fees
and benefit payments as reconciled below:
Changes in fair $ (23 ) $ 14 $ (24 ) $ (19 ) $ 17 $ (12 )
value of market
risk benefits and
associated hedges
Adjustment for (3 ) (1 ) (2 ) (4 ) (3 ) (10 )
changes in reserves,
attributed fees and
benefit payments
Changes in fair value of market $ (26 ) $ 13 $ (26 ) $ (23 ) $ 14 $ (22 )
risk benefits attributable
to interest rates, equity
markets andassociated hedges
25
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Adjusted Operating Loss--Life and Annuities Segment--Life Insurance
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
(1),(2)
REVENUES:
Premiums $ 53 $ 47 $ 48 $ 50 $ 62 $ 207
Net investment income 167 167 169 165 164 665
Net investment gains (losses) 5 (6 ) -- (1 ) (2 ) (9 )
Policy fees and other income 129 131 130 136 134 531
Total revenues 354 339 347 350 358 1,394
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves 208 207 184 197 199 787
Liability remeasurement (gains) losses 11 229 22 7 18 276
Interest credited 99 98 99 98 98 393
Acquisition and operating expenses, net of deferrals 35 38 36 34 36 144
Amortization of deferred acquisition costs and intangibles 38 35 38 36 44 153
Total benefits and expenses 391 607 379 372 395 1,753
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (37 ) (268 ) (32 ) (22 ) (37 ) (359 )
Benefit for income taxes (8 ) (57 ) (7 ) (5 ) (8 ) (77 )
LOSS FROM CONTINUING OPERATIONS (29 ) (211 ) (25 ) (17 ) (29 ) (282 )
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses (5 ) 6 -- 1 2 9
Taxes on adjustments 1 (1 ) -- (1 ) -- (2 )
ADJUSTED OPERATING LOSS $ (33 ) $ (206 ) $ (25 ) $ (17 ) $ (27 ) $ (275 )
(1) In the fourth quarter of 2023, the company's life insurance products had an unfavorable impact from
cashflow assumption updates of $226 million reflecting updates to its persistency and mortality
assumptions. The company made an unfavorable update to its persistency assumptions particularly
in certain universal life insurance products with secondaryguarantees to better reflect emerging
experience, consistent with others in the industry. The company also made unfavorable updates to
its mortality assumption in its term universal, universal and term life insurance products to
better reflectemerging experience related to more modest mortality improvement and to include
an expectation that mortality will continue at elevated levels in the near term post-COVID-19.
(2) Effective December 31, 2023, the company entered into a binding letter
of intent with a third-party to cede, ona yearly renewable term basis,
certain term and universal life insurance products. Policy fees and other
income included $5 million of ceded deposits and the remeasurement
loss reflected higher ceded universal life insurance reserves of $40
million.As a result, this transaction resulted in a gain of $35 million
that was deferred as cost of reinsurance in benefits and other changes
in policy reserves. Therefore, there was no impact to net income (loss).
26
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Adjusted Operating Income--Life and Annuities Segment--Fixed Annuities
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
REVENUES:
Net investment $ 80 $ 82 $ 85 $ 87 $ 91 $ 345
income
Net investment (9 ) (8 ) (18 ) (5 ) (8 ) (39 )
gains (losses)
Policy fees and 2 2 1 2 2 7
other income
Total 73 76 68 84 85 313
revenues
BENEFITS AND
EXPENSES:
Benefits and other changes 36 35 36 35 39 145
in policy reserves
Liability remeasurement (3 ) (1 ) (10 ) 2 (1 ) (10 )
(gains) losses
Changes in fair value of market (7 ) 16 (18 ) (4 ) 8 2
risk benefits and associated hedges
Interest 25 26 26 27 27 106
credited
Acquisition and operating 8 8 9 7 8 32
expenses, net of deferrals
Amortization of deferred 3 2 3 4 3 12
acquisition costs and intangibles
Total benefits 62 86 46 71 84 287
and expenses
INCOME (LOSS) FROM CONTINUING 11 (10 ) 22 13 1 26
OPERATIONS BEFORE INCOME TAXES
Provision (benefit) 2 (2 ) 5 3 -- 6
for income taxes
INCOME (LOSS) FROM 9 (8 ) 17 10 1 20
CONTINUING OPERATIONS
ADJUSTMENTS TO INCOME (LOSS)
FROM CONTINUING OPERATIONS:
Net investment 9 8 18 5 8 39
(gains) losses
Changes in fair value of market risk benefits attributable (7 ) 14 (18 ) (5 ) 8 (1 )
to interest rates, equity markets andassociated hedges
(1)
Taxes on -- (5 ) -- -- (3 ) (8 )
adjustments
ADJUSTED $ 11 $ 9 $ 17 $ 10 $ 14 $ 50
OPERATING INCOME
(1)
Changes in fair value of market risk benefitsand associated hedges were adjusted to
exclude changes in reserves, attributed fees and benefit payments as reconciled below:
Changes in fair value of market $ (7 ) $ 16 $ (18 ) $ (4 ) $ 8 $ 2
risk benefits and associated hedges
Adjustment for changes in reserves, -- (2 ) -- (1 ) -- (3 )
attributed fees and benefit payments
Changes in fair value of market risk benefits attributable $ (7 ) $ 14 $ (18 ) $ (5 ) $ 8 $ (1 )
to interest rates, equity markets andassociated hedges
27
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Adjusted Operating Income--Life and AnnuitiesSegment--Variable Annuities
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
REVENUES:
Net investment $ 7 $ 7 $ 7 $ 9 $ 9 $ 32
income
Net investment -- -- -- (1 ) -- (1 )
gains (losses)
Policy fees and 27 27 27 27 27 108
other income
Total 34 34 34 35 36 139
revenues
BENEFITS AND
EXPENSES:
Benefits and other changes 6 6 9 8 8 31
in policy reserves
Changes in fair value of market (16 ) (2 ) (6 ) (15 ) 9 (14 )
risk benefits and associated hedges
Interest 1 -- 2 1 1 4
credited
Acquisition and operating 11 9 9 10 9 37
expenses, net of deferrals
Amortization of deferred 4 4 4 4 4 16
acquisition costs and intangibles
Total benefits 6 17 18 8 31 74
and expenses
INCOME FROM CONTINUING 28 17 16 27 5 65
OPERATIONS BEFORE INCOME TAXES
Provision for 6 3 3 5 1 12
income taxes
INCOME FROM 22 14 13 22 4 53
CONTINUING OPERATIONS
ADJUSTMENTS TO INCOME FROM
CONTINUING OPERATIONS:
Net investment -- -- -- 1 -- 1
(gains) losses
Changes in fair value of market risk benefits attributable (19 ) (1 ) (8 ) (18 ) 6 (21 )
to interest rates, equity markets andassociated hedges
(1)
Taxes on 4 1 -- 4 (1 ) 4
adjustments
ADJUSTED $ 7 $ 14 $ 5 $ 9 $ 9 $ 37
OPERATING INCOME
(1)
Changes in fair value of market risk benefitsand associated hedges were adjusted to
exclude changes in reserves, attributed fees and benefit payments as reconciled below:
Changes in fair value of market $ (16 ) $ (2 ) $ (6 ) $ (15 ) $ 9 $ (14 )
risk benefits and associated hedges
Adjustment for changes in reserves, (3 ) 1 (2 ) (3 ) (3 ) (7 )
attributed fees and benefit payments
Changes in fair value of market risk benefits attributable $ (19 ) $ (1 ) $ (8 ) $ (18 ) $ 6 $ (21 )
to interest rates, equity markets andassociated hedges
28
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Corporate and Other
29
-------------------------------------------------------------------------------
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Adjusted Operating Loss--Corporate and Other
(1)
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
REVENUES:
Premiums $ 3 $ 2 $ 3 $ 2 $ 2 $ 9
Net investment income 7 8 3 4 4 19
Net investment gains (losses) (4 ) (11 ) (4 ) (3 ) (10 ) (28 )
Policy fees and other income -- (1 ) (1 ) -- -- (2 )
Total revenues 6 (2 ) 1 3 (4 ) (2 )
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves (3 ) (3 ) (1 ) (2 ) (3 ) (9 )
Acquisition and operating expenses, net of deferrals 29 21 13 15 16 65
Amortization of deferred acquisition costs and intangibles 1 1 -- -- -- 1
Interest expense 17 17 17 16 16 66
Total benefits and expenses 44 36 29 29 29 123
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (38 ) (38 ) (28 ) (26 ) (33 ) (125 )
Provision (benefit) for income taxes 7 (5 ) (6 ) (4 ) (5 ) (20 )
LOSS FROM CONTINUING OPERATIONS (45 ) (33 ) (22 ) (22 ) (28 ) (105 )
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses 4 11 4 3 10 28
(Gains) losses on early extinguishment of debt (1 ) (1 ) -- -- (1 ) (2 )
Expenses related to restructuring 6 -- -- -- 4 4
Taxes on adjustments (2 ) (2 ) -- (1 ) (3 ) (6 )
ADJUSTED OPERATING LOSS $ (38 ) $ (25 ) $ (18 ) $ (20 ) $ (18 ) $ (81 )
(1) Includes inter-segment eliminations and the results of other businesses, including start-up growth
initiativesand certain international businesses, that are managed outside the operating segments.
30
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AdditionalFinancial Data
31
-------------------------------------------------------------------------------
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Investments Summary
(amounts in millions)
March December September June 30, March
31, 31, 2023 30, 2023 2023 31,
2024 2023
Carrying % of Carrying % of Carrying % of Carrying % of Carrying %
Amount Total Amount Total Amount Total Amount Total Amount T
Composition
of
Investment
Portfolio
Fixed
maturity
securities:
Investment
grade:
Public $ 26,667 43 % $ 27,302 43 % $ 25,148 42 % $ 26,413 43 % $ 26,894
fixed
maturity
securities
Private 11,021 18 11,016 18 10,432 17 10,808 18 11,182
fixed
maturity
securities
Residential 876 1 907 1 891 2 935 1 986
mortgage-backedsecurities
(1)
Commercial 1,315 2 1,413 2 1,495 3 1,674 3 1,814
mortgage-backed
securities
Other 2,264 4 2,199 4 2,163 4 2,164 4 2,113
asset-backed
securities
State 2,266 4 2,302 4 2,164 4 2,343 4 2,403
and
political
subdivisions
Non-investment 1,656 3 1,642 3 1,675 3 1,733 3 1,989
grade
fixed
maturity
securities
Equity
securities:
Common 377 1 347 1 316 1 326 1 306
stocks
and
mutual
funds
Preferred 50 -- 49 -- 47 -- 52 -- 58 --
stocks
Commercial 6,719 11 6,802 10 6,793 11 6,852 11 6,891
mortgage
loans,
net
Policy 2,219 4 2,220 4 2,233 4 2,270 4 2,133
loans
Limited 2,949 5 2,821 5 2,699 5 2,585 4 2,456
partnerships
Cash, 1,962 3 2,242 4 2,023 3 2,196 3 1,759
cash
equivalents,
restricted
cash
and
short-term
investments
Other Derivatives:
invested
assets:
Interest 35 -- 55 -- 12 -- 30 -- 42 --
rate
swaps
Foreign 11 -- 10 -- 15 -- 16 -- 17 --
currency
swaps
Equity 20 -- 15 -- 11 -- 15 -- 10 --
index
options
Forward 41 -- 51 -- -- -- -- -- -- --
bond
purchase
commitments
Other 566 1 573 1 577 1 564 1 541
Total $ 61,014 100 % $ 61,966 100 % $ 58,694 100 % $ 60,976 100 % $ 61,594
invested
assets
and
cash
Public
Fixed
Maturity
Securities--CreditQuality:
NRSRO
(2)
Designation
AAA $ 2,472 8 % $ 2,559 8 % $ 2,533 8 % $ 5,936 19 % $ 6,112 19 %
AA 6,113 19 6,170 19 5,650 19 2,896 9 2,872 9
A 8,945 28 9,287 29 8,359 28 8,597 27 8,699
BBB 13,336 43 13,645 42 12,923 43 13,649 43 14,056 43
BB 519 2 498 2 519 2 564 2 786 2
B 27 -- 30 -- 20 -- 23 -- 41 --
CCC -- -- -- -- -- -- -- -- -- --
and
lower
Total $ 31,412 100 % $ 32,189 100 % $ 30,004 100 % $ 31,665 100 % $ 32,566
public
fixed
maturity
securities
Private
Fixed
Maturity
Securities--CreditQuality:
NRSRO
(2)
Designation
AAA $ 851 6 % $ 832 6 % $ 867 6 % $ 863 6 % $ 860 6 %
AA 1,570 11 1,477 10 1,352 10 1,416 10 1,422 10
A 4,078 28 4,043 28 3,960 28 4,135 29 4,217
BBB 7,044 47 7,126 48 6,649 48 6,845 47 7,154 48
BB 991 7 975 7 993 7 1,016 7 1,012 7
B 104 1 117 1 121 1 122 1 150
CCC -- -- 7 -- 7 -- 8 -- -- --
and
lower
Not 15 -- 15 -- 15 -- -- -- -- --
rated
Total $ 14,653 100 % $ 14,592 100 % $ 13,964 100 % $ 14,405 100 % $ 14,815
private
fixed
maturity
securities
of
otal
44 %
18
2
3
3
4
3
1
11
3
4
3
1
100 %
27
100 %
28
1
100 %
(1) The company does not have any material exposure to residential mortgage-backed securities collateralized debtobligations (CDOs).
(2) Nationally Recognized Statistical Rating Organizations.
32
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Fixed Maturity Securities Summary
(amounts in millions)
March December September June 30, March
31, 31, 2023 30, 2023 2023 31,
2024 2023
Fair % of Fair % of Fair % of Fair % of Fair % of
Value Total Value Total Value Total Value Total Value Total
Fixed Maturity
Securities
- Security
Sector:
U.S. government, $ 3,460 8 % $ 3,494 7 % $ 3,112 7 % $ 3,389 7 % $ 3,441 7 %
agencies and
government-sponsored
enterprises
State and 2,266 5 2,302 5 2,164 5 2,343 5 2,403 5
political
subdivisions
Foreign 613 1 626 1 583 1 625 1 630 1
government
U.S. 27,437 59 27,985 60 25,956 60 27,043 59 27,872 59
corporate
Foreign 7,802 17 7,811 17 7,554 17 7,838 17 8,059 17
corporate
Residential 876 2 907 2 891 2 934 2 985 2
mortgage-backed
securities
Commercial 1,321 3 1,418 3 1,503 3 1,690 4 1,831 4
mortgage-backed
securities
Other 2,290 5 2,238 5 2,205 5 2,208 5 2,160 5
asset-backed
securities
Total $ 46,065 100 % $ 46,781 100 % $ 43,968 100 % $ 46,070 100 % $ 47,381 100 %
fixed
maturity
securities
Corporate
Bond Holdings
- Industry
Sector:
Investment
Grade:
Finance $ 8,876 25 % $ 9,045 25 % $ 8,541 26 % $ 8,871 26 % $ 9,149 26 %
and
insurance
Utilities 4,902 14 4,904 14 4,503 13 4,653 14 4,788 13
Energy 3,153 9 3,181 9 2,967 9 3,022 9 2,882 8
Consumer 4,981 15 4,979 14 4,573 14 4,863 14 4,998 14
-
non-cyclical
Consumer 1,588 5 1,659 5 1,497 4 1,558 4 1,602 4
-
cyclical
Capital 2,559 7 2,593 7 2,406 7 2,490 7 2,554 7
goods
Industrial 1,832 5 1,869 5 1,773 5 1,857 5 1,944 6
Technology 3,491 10 3,686 10 3,422 10 3,599 10 3,713 10
and
communications
Transportation 1,466 4 1,498 4 1,371 4 1,428 4 1,459 4
Other 870 2 895 3 933 3 973 3 1,022 3
Subtotal 33,718 96 34,309 96 31,986 95 33,314 96 34,111 95
Non-Investment
Grade:
Finance 204 1 181 1 176 1 154 -- 164 1
and
insurance
Utilities 52 -- 54 -- 72 -- 46 -- 47 --
Energy 197 1 218 1 218 1 228 1 407 1
Consumer 139 -- 142 -- 135 -- 139 -- 150 --
-
non-cyclical
Consumer 260 1 211 1 262 1 273 1 291 1
-
cyclical
Capital 134 -- 149 -- 157 1 172 1 178 1
goods
Industrial 170 -- 161 -- 145 -- 149 -- 155 --
Technology 213 1 228 1 212 1 226 1 247 1
and
communications
Transportation 27 -- 28 -- 29 -- 35 -- 37 --
Other 125 -- 115 -- 118 -- 145 -- 144 --
Subtotal 1,521 4 1,487 4 1,524 5 1,567 4 1,820 5
Total $ 35,239 100 % $ 35,796 100 % $ 33,510 100 % $ 34,881 100 % $ 35,931 100 %
Fixed Maturity
Securities -
Contractual
Maturity Dates:
Due in $ 1,298 3 % $ 1,372 3 % $ 1,426 3 % $ 1,375 3 % $ 1,328 3 %
one
year or
less
Due after 8,112 18 8,205 18 8,115 18 8,000 17 8,245 17
one year
through
five years
Due after 11,851 26 12,114 26 11,368 26 11,662 25 11,746 25
five years
through
ten years
Due 20,317 43 20,527 43 18,460 43 20,201 44 21,086 44
after
ten
years
Subtotal 41,578 90 42,218 90 39,369 90 41,238 89 42,405 89
Mortgage 4,487 10 4,563 10 4,599 10 4,832 11 4,976 11
and
asset-backed
securities
Total $ 46,065 100 % $ 46,781 100 % $ 43,968 100 % $ 46,070 100 % $ 47,381 100 %
fixed
maturity
securities
33
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
U.S. GAAP Net Investment Income Yields
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
U.S. GAAP Net
Investment Income
Fixed maturity $ 554 $ 557 $ 559 $ 567 $ 561 $ 2,244
securities - taxable
Fixed maturity 1 -- 1 1 1 3
securities - non-taxable
Equity 2 5 1 3 2 11
securities
Commercial 75 75 76 75 76 302
mortgage loans
Policy 58 57 58 54 55 224
loans
Limited 20 41 31 17 28 117
partnerships
Other invested 68 72 69 70 68 279
assets
Cash, cash equivalents, restricted 27 27 28 22 18 95
cash and short-term investments
Gross investment income 805 834 823 809 809 3,275
before expenses and fees
Expenses (23 ) (24 ) (22 ) (24 ) (22 ) (92 )
and fees
Net investment $ 782 $ 810 $ 801 $ 785 $ 787 $ 3,183
income
Annualized
Yields
Fixed maturity 4.5 % 4.5 % 4.5 % 4.5 % 4.4 % 4.5 %
securities - taxable
Fixed maturity 10.8 % -- % 5.6 % 4.9 % 4.6 % 4.2 %
securities - non-taxable
Equity 1.9 % 5.3 % 1.1 % 3.2 % 2.3 % 3.0 %
securities
Commercial 4.4 % 4.4 % 4.5 % 4.4 % 4.4 % 4.4 %
mortgage loans
Policy 10.5 % 10.2 % 10.3 % 9.8 % 10.3 % 10.2 %
loans
Limited 2.8 % 5.9 % 4.7 % 2.7 % 4.7 % 4.5 %
partnerships
(1)
Other invested 47.7 % 50.1 % 48.3 % 50.7 % 51.6 % 50.5 %
assets
(2)
Cash, cash equivalents, restricted 5.1 % 5.1 % 5.3 % 4.5 % 4.0 % 4.7 %
cash and short-term investments
Gross investment income 5.0 % 5.2 % 5.1 % 5.0 % 5.0 % 5.1 %
before expenses and fees
Expenses (0.1 )% (0.2 )% (0.1 )% (0.1 )% (0.1 )% (0.2 )%
and fees
Net investment 4.9 % 5.0 % 5.0 % 4.9 % 4.9 % 4.9 %
income
Yields are based on net investment income as reported under U.S. GAAP and are
consistent with how the company measures itsinvestment 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
andderivative counterparty collateral, which exclude unrealized fair value
adjustments. See page 39 herein for average invested assets and cash used in
the yield calculation.
(1) Limited partnership investments are primarily equity-based and do not have fixed returns by period.
(2) Investment income for other invested assets includes amortization of terminated cash
flow hedges, which have nocorresponding book value within the yield calculation.
34
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Net Investment Gains (Losses)--Detail
(amounts in millions)
2024 2023
1Q 4Q 3Q 2Q 1Q Total
Realized investment
gains (losses):
Net realized gains (losses) on
available-for-sale securities:
Fixed maturity
securities:
U.S. $ (17 ) $ (15 ) $ (5 ) $ (39 ) $ (8 ) $ (67 )
corporate
U.S. government, agencies and 1 (30 ) 2 1 1 (26 )
government-sponsored enterprises
Foreign (3 ) (5 ) (3 ) 1 (3 ) (10 )
corporate
Foreign -- -- -- -- (1 ) (1 )
government
Mortgage-backed (3 ) (18 ) (5 ) (2 ) (5 ) (30 )
securities
Asset-backed -- -- -- 9 -- 9
securities
Total net realized gains (losses) (22 ) (68 ) (11 ) (30 ) (16 ) (125 )
on available-for-sale securities
Net realized gains (losses) -- -- -- (1 ) -- (1 )
on equity securities sold
Total net realized (22 ) (68 ) (11 ) (31 ) (16 ) (126 )
investment gains (losses)
Net change in allowance for credit losses on -- (1 ) (2 ) 11 (15 ) (7 )
available-for-sale fixed maturity securities
Write-down of available-for-sale -- -- -- (1 ) -- (1 )
fixed maturity securities
Net unrealized gains (losses) 32 33 (12 ) 21 11 53
on equity securities still held
Net unrealized gains (losses) 43 57 14 40 -- 111
on limited partnerships
Commercial (2 ) (2 ) (1 ) -- (2 ) (5 )
mortgage loans
Derivative 1 24 (28 ) (1 ) 12 7
instruments
Other (3 ) (5 ) (3 ) -- (1 ) (9 )
Net investment gains 49 38 (43 ) 39 (11 ) 23
(losses), gross
Adjustment for net investment (gains) losses 1 -- -- 2 -- 2
attributable to noncontrolling interests
Net investment gains $ 50 $ 38 $ (43 ) $ 41 $ (11 ) $ 25
(losses), net
35
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Reconciliationsof Non-GAAP Measures
36
-------------------------------------------------------------------------------
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Reconciliation of Operating ROE
(amounts in millions)
Twelve Month Rolling Average ROE Twelve months ended
U.S. GAAP March December September June 30, March
Basis ROE 31, 31, 30, 2023 31,
2024 2023 2023 2023
Net income available to Genworth Financial, Inc.'s $ 93 $ 76 $ 669 $ 776 $ 798
common stockholders for the twelve monthsended
(1)
Quarterly average Genworth Financial, Inc.'s stockholders' $ 10,205 $ 10,234 $ 10,205 $ 10,104 $ 9,964
equity, excluding accumulatedother comprehensive income (loss)
(2)
U.S. GAAP 0.9 % 0.7 % 6.6 % 7.7 % 8.0 %
Basis ROE
(1)/(2)
Operating
ROE
Adjusted operating income (loss) $ (18 ) $ 41 $ 609 $ 725 $ 793
for the twelve months ended
(1)
Quarterly average Genworth Financial, Inc.'s stockholders' $ 10,205 $ 10,234 $ 10,205 $ 10,104 $ 9,964
equity, excluding accumulatedother comprehensive income (loss)
(2)
Operating (0.2 )% 0.4 % 6.0 % 7.2 % 8.0 %
ROE
(1)/(2)
Quarterly Average ROE Three months ended
U.S. March December September June 30, March
GAAP 31, 31, 30, 2023 31,
Basis 2024 2023 2023 2023
ROE
Net income (loss) available $ 139 $ (212 ) $ 29 $ 137 $ 122
to Genworth Financial,
Inc.'s common stockholders
for the periodended
(3)
Quarterly average Genworth Financial, $ 10,068 $ 10,156 $ 10,299 $ 10,307 $ 10,269
Inc.'s stockholders' equity for
the period,excluding accumulated
other comprehensive income (loss)
(4)
Annualized 5.5 % (8.4 )% 1.1 % 5.3 % 4.8 %
U.S. GAAP
Quarterly
BasisROE
(3)/(4)
Operating
ROE
Adjusted $ 85 $ (230 ) $ 42 $ 85 $ 144
operating income
(loss) for the
periodended
(3)
Quarterly average Genworth Financial, $ 10,068 $ 10,156 $ 10,299 $ 10,307 $ 10,269
Inc.'s stockholders' equity for
the period,excluding accumulated
other comprehensive income (loss)
(4)
Annualized 3.4 % (9.1 )% 1.6 % 3.3 % 5.6 %
Operating
Quarterly
BasisROE
(3)/(4)
Non-GAAP Definition for Operating ROE
The company references the non-GAAP financial measure entitled "operating
return on equity" or "operating ROE." The company definesoperating ROE as
adjusted operating income (loss) divided by average ending Genworth Financial,
Inc.'s stockholders' equity, excluding accumulated other comprehensive income
(loss). Management believes that analysis of operating ROEenhances
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
GenworthFinancial, 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
toGenworth 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 othercomprehensive income (loss), is derived by averaging
ending Genworth Financial, Inc.'s stockholders' equity, excluding accumulated
other comprehensive income (loss), 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 othercomprehensive income (loss), is derived by averaging
ending Genworth Financial, Inc.'s stockholders' equity, excluding accumulated
other comprehensive income (loss), over two consecutive quarters.
37
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Reconciliation of Consolidated Expense Ratio
(amounts in millions)
2024 2023
GAAP Basis 1Q 4Q 3Q 2Q 1Q Total
Expense Ratio
(A) Acquisition and operating $ 236 $ 248 $ 228 $ 226 $ 240 $ 942
expenses, net of deferrals
(B) Premiums $ 875 $ 904 $ 915 $ 902 $ 915 $ 3,636
(A) / GAAP Basis 27 % 27 % 25 % 25 % 26 % 26 %
(B) Expense Ratio
Adjusted
Expense Ratio
Acquisition and operating $ 236 $ 248 $ 228 $ 226 $ 240 $ 942
expenses, net of deferrals
Less: Legal settlement (4 ) -- -- 1 13 14
(recoveries) expenses
(1)
(C) Adjusted acquisition and operating $ 240 $ 248 $ 228 $ 225 $ 227 $ 928
expenses, net of deferrals
Premiums $ 875 $ 904 $ 915 $ 902 $ 915 $ 3,636
Add: Policy fees 158 159 158 166 163 646
and other income
(D) Adjusted $ 1,033 $ 1,063 $ 1,073 $ 1,068 $ 1,078 $ 4,282
revenues
(C) / Adjusted 23 % 23 % 21 % 21 % 21 % 22 %
(D) expense ratio
Non-GAAP Definition for Adjusted Expense Ratio
The company references the non-GAAP financial measure entitled "adjusted
expense ratio" as a measure of its operating performance. The companydefines
adjusted expense ratio as acquisition and operating expenses, net of
deferrals, less certain reinsurance expenses, less legal settlement expenses
incurred in the company's long-term care insurance business divided by the sum
ofpremiums, policy fees and other income. Management believes that the expense
ratio analysis enhances understanding of the operating performance of the
company. However, the adjusted expense ratio as defined by the company should
not be viewed as asubstitute for the GAAP basis expense ratio.
(1) Estimated pre-tax class action attorney fees incurred in connection with legal settlements in
thecompany's long-term care insurance business. These amounts are accrued in the period the court
settlement occurs. Amounts in the first quarter of 2024 represent insurance recoveries on legal costs
incurred in connection with legal settlementsin the company's long-term care insurance business.
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GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2024
Reconciliation of Reported Yield to Core Yield
2024 2023
(Assets - amounts 1Q 4Q 3Q 2Q 1Q Total
in billions)
Reported - Total $ 61.0 $ 62.0 $ 58.7 $ 61.0 $ 61.6 $ 62.0
Invested Assets and Cash
Subtract:
Unrealized (3.1 ) (2.4 ) (5.8 ) (3.7 ) (3.0 ) (2.4 )
gains (losses)
Adjusted end of period $ 64.1 $ 64.4 $ 64.5 $ 64.7 $ 64.6 $ 64.4
invested assets and cash
(A) Average Invested Assets and Cash Used $ 64.3 $ 64.5 $ 64.6 $ 64.6 $ 64.8 $ 64.6
in Reported and Core Yield Calculation
(Income - amounts
in millions)
(B) Reported - Net $ 782 $ 810 $ 801 $ 785 $ 787 $ 3,183
Investment Income
Subtract:
Bond calls and commercial 1 -- 1 -- 2 3
mortgage loan prepayments
Other non-core 2 4 1 3 1 9
items
(1)
(C) Core Net $ 779 $ 806 $ 799 $ 782 $ 784 $ 3,171
Investment Income
(B) / Reported 4.87 % 5.03 % 4.96 % 4.86 % 4.86 % 4.92 %
(A) Yield
(C) / Core 4.85 % 5.00 % 4.95 % 4.84 % 4.84 % 4.91 %
(A) Yield
Note: Yields have been annualized.
Non-GAAP Definition for Core Yield
The company referencesthe 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.
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