Exhibit 99.2
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
| Page | ||
| 3 | ||
| Quarterly Sales and Select Metrics by Segment |
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| 5-11 | ||
| 12-18 | ||
| 19-29 | ||
| Corporate Information |
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| 31-32 | ||
2
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Selected Operating Performance Measures
This statistical supplement contains selected operating performance measures including “sales,” “assets under management,” “insurance in-force” or “risk in-force” which are commonly used in the insurance and investment industries as measures of operating performance.
Management regularly monitors and reports the sales metrics as a measure of volume of new and renewal business generated in a period. Sales refers to (1) annualized first-year premiums for term life insurance, long-term care insurance and Medicare supplement insurance; (2) new and additional premiums/deposits for universal life insurance, linked-benefits, spread-based and variable products; (3) gross flows and net flows, which represent gross flows less redemptions, for our wealth management(1) business; (4) written premiums and deposits, gross of ceded reinsurance and cancellations, and premium equivalents, where we earn a fee for administrative services only business, for payment protection insurance; (5) new insurance written for mortgage insurance, which in each case reflects the amount of business the company generated during each period presented; and (6) written premiums, net of cancellations, for our Mexican insurance operations. Sales do not include renewal premiums on policies or contracts written during prior periods.
The company considers annualized first-year premiums, new premiums/deposits, gross and net flows, written premiums, premium equivalents and new insurance written to be measures of the company’s operating performance because they represent measures of new sales of insurance policies or contracts during a specified period, rather than measures of the company’s revenues or profitability during that period.
Management regularly monitors and reports assets under management for our wealth management business, insurance in-force and risk in-force. Assets under management for our wealth management business represent third-party assets under management that are not consolidated in our financial statements. Insurance in-force for our life insurance, international mortgage insurance and U.S. mortgage insurance businesses is a measure of the aggregate face value of outstanding insurance policies as of the respective reporting date. Risk in-force for our international mortgage insurance and U.S. mortgage insurance businesses is a measure that recognizes that the loss on any particular mortgage loan will be reduced by the net proceeds received upon sale of the underlying property. The company considers assets under management for our wealth management business, insurance in-force and risk in-force to be measures of the company’s operating performance because they represent measures of the size of our business at a specific date, rather than measures of the company’s revenues or profitability during that period.
These operating measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.
| (1) | Formerly known as Managed Money. |
3
Quarterly Sales and Select Metrics by Segment
4
5
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Sales and Assets Under Management—Wealth Management
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||||||||||
| SALES: |
||||||||||||||||||||||||||||||||
| Sales by Distribution Channel: |
||||||||||||||||||||||||||||||||
| Independent Producers |
$ | 1,229 | $ | 1,105 | $ | 2,334 | $ | 1,217 | $ | 1,382 | $ | 1,427 | $ | 1,400 | $ | 5,426 | ||||||||||||||||
| Dedicated Sales Specialists |
176 | 175 | 351 | 257 | 283 | 332 | 312 | 1,184 | ||||||||||||||||||||||||
| Total Sales |
$ | 1,405 | $ | 1,280 | $ | 2,685 | $ | 1,474 | $ | 1,665 | $ | 1,759 | $ | 1,712 | $ | 6,610 | ||||||||||||||||
| ASSETS UNDER MANAGEMENT: |
||||||||||||||||||||||||||||||||
| Beginning of period |
$ | 20,461 | $ | 21,584 | $ | 21,584 | $ | 21,662 | $ | 20,683 | $ | 18,806 | $ | 17,293 | $ | 17,293 | ||||||||||||||||
| Gross flows |
1,405 | 1,280 | 2,685 | 1,474 | 1,665 | 1,759 | 1,712 | 6,610 | ||||||||||||||||||||||||
| Redemptions |
(1,044 | ) | (1,080 | ) | (2,124 | ) | (797 | ) | (567 | ) | (494 | ) | (431 | ) | (2,289 | ) | ||||||||||||||||
| Net flows |
361 | 200 | 561 | 677 | 1,098 | 1,265 | 1,281 | 4,321 | ||||||||||||||||||||||||
| Market performance |
(537 | ) | (1,323 | ) | (1,860 | ) | (755 | ) | (119 | ) | 612 | 232 | (30 | ) | ||||||||||||||||||
| End of period |
$ | 20,285 | $ | 20,461 | $ | 20,285 | $ | 21,584 | $ | 21,662 | $ | 20,683 | $ | 18,806 | $ | 21,584 | ||||||||||||||||
Wealth Management results represent AssetMark Investment Services, Inc., Genworth Financial Asset Management, Inc., Genworth Financial Advisers Corporation, Genworth Financial Trust Company and Capital Brokerage Corporation.
6
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Sales and Assets Under Management—Retirement Income—Fee-Based
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||||||||||
| SALES: |
||||||||||||||||||||||||||||||||
| Sales by Product: |
||||||||||||||||||||||||||||||||
| Income Distribution Series(1) |
$ | 585 | $ | 586 | $ | 1,171 | $ | 606 | $ | 528 | $ | 472 | $ | 409 | $ | 2,015 | ||||||||||||||||
| Traditional Variable Annuities |
118 | 113 | 231 | 151 | 136 | 153 | 134 | 574 | ||||||||||||||||||||||||
| Variable Life |
2 | 1 | 3 | 3 | 1 | 3 | 1 | 8 | ||||||||||||||||||||||||
| Total Sales |
$ | 705 | $ | 700 | $ | 1,405 | $ | 760 | $ | 665 | $ | 628 | $ | 544 | $ | 2,597 | ||||||||||||||||
| Sales by Distribution Channel: |
||||||||||||||||||||||||||||||||
| Financial Intermediaries |
$ | 662 | $ | 660 | $ | 1,322 | $ | 716 | $ | 609 | $ | 592 | $ | 513 | $ | 2,430 | ||||||||||||||||
| Independent Producers |
15 | 12 | 27 | 10 | 20 | 13 | 12 | 55 | ||||||||||||||||||||||||
| Dedicated Sales Specialists |
28 | 28 | 56 | 34 | 36 | 23 | 19 | 112 | ||||||||||||||||||||||||
| Total Sales |
$ | 705 | $ | 700 | $ | 1,405 | $ | 760 | $ | 665 | $ | 628 | $ | 544 | $ | 2,597 | ||||||||||||||||
| Assets Under Management: | ||||||||||||||||||||||||||||||||
| Income Distribution Series(1) |
||||||||||||||||||||||||||||||||
| Account value, net of reinsurance, beginning of period |
$ | 4,877 | $ | 4,535 | $ | 4,535 | $ | 3,978 | $ | 3,361 | $ | 2,813 | $ | 2,402 | $ | 2,402 | ||||||||||||||||
| Deposits |
596 | 595 | 1,191 | 625 | 543 | 482 | 421 | 2,071 | ||||||||||||||||||||||||
| Surrenders, benefits and product charges |
(112 | ) | (105 | ) | (217 | ) | (98 | ) | (78 | ) | (66 | ) | (60 | ) | (302 | ) | ||||||||||||||||
| Net flows |
484 | 490 | 974 | 527 | 465 | 416 | 361 | 1,769 | ||||||||||||||||||||||||
| Interest credited and investment performance |
(53 | ) | (148 | ) | (201 | ) | 30 | 152 | 132 | 50 | 364 | |||||||||||||||||||||
| Account value, net of reinsurance, end of period |
5,308 | 4,877 | 5,308 | 4,535 | 3,978 | 3,361 | 2,813 | 4,535 | ||||||||||||||||||||||||
| Traditional Variable Annuities |
||||||||||||||||||||||||||||||||
| Account value, net of reinsurance, beginning of period |
2,241 | 2,345 | 2,345 | 2,262 | 2,098 | 1,905 | 1,780 | 1,780 | ||||||||||||||||||||||||
| Deposits |
105 | 108 | 213 | 148 | 133 | 149 | 130 | 560 | ||||||||||||||||||||||||
| Surrenders, benefits and product charges |
(63 | ) | (59 | ) | (122 | ) | (50 | ) | (48 | ) | (56 | ) | (41 | ) | (195 | ) | ||||||||||||||||
| Net flows |
42 | 49 | 91 | 98 | 85 | 93 | 89 | 365 | ||||||||||||||||||||||||
| Interest credited and investment performance |
(5 | ) | (153 | ) | (158 | ) | (15 | ) | 79 | 100 | 36 | 200 | ||||||||||||||||||||
| Account value, net of reinsurance, end of period |
2,278 | 2,241 | 2,278 | 2,345 | 2,262 | 2,098 | 1,905 | 2,345 | ||||||||||||||||||||||||
| Variable Life Insurance |
||||||||||||||||||||||||||||||||
| Account value, beginning of the period |
371 | 403 | 403 | 414 | 408 | 396 | 391 | 391 | ||||||||||||||||||||||||
| Deposits |
5 | 5 | 10 | 6 | 6 | 7 | 5 | 24 | ||||||||||||||||||||||||
| Surrenders, benefits and product charges |
(10 | ) | (10 | ) | (20 | ) | (13 | ) | (15 | ) | (14 | ) | (12 | ) | (54 | ) | ||||||||||||||||
| Net flows |
(5 | ) | (5 | ) | (10 | ) | (7 | ) | (9 | ) | (7 | ) | (7 | ) | (30 | ) | ||||||||||||||||
| Interest credited and investment performance |
7 | (27 | ) | (20 | ) | (4 | ) | 15 | 19 | 12 | 42 | |||||||||||||||||||||
| Account value, end of period |
373 | 371 | 373 | 403 | 414 | 408 | 396 | 403 | ||||||||||||||||||||||||
| Total Retirement Income—Fee-Based |
$ | 7,959 | $ | 7,489 | $ | 7,959 | $ | 7,283 | $ | 6,654 | $ | 5,867 | $ | 5,114 | $ | 7,283 | ||||||||||||||||
| (1) |
The Income Distribution Series products are comprised of our retirement income deferred and immediate variable annuity products, including those variable annuity products with rider options that provide similar income features. These products do not include fixed single premium immediate or deferred annuities, which may also serve income distribution needs. |
7
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Sales and Assets under Management—Retirements Income—Spread-Based
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||||||||||
| SALES: |
||||||||||||||||||||||||||||||||
| Sales by Product: |
||||||||||||||||||||||||||||||||
| Structured Settlements |
$ | — | $ | 3 | $ | 3 | $ | 12 | $ | 5 | $ | 30 | $ | 47 | $ | 94 | ||||||||||||||||
| Single Premium Immediate Annuities |
150 | 240 | 390 | 189 | 208 | 218 | 200 | 815 | ||||||||||||||||||||||||
| Fixed Annuities |
298 | 408 | 706 | 185 | 145 | 106 | 167 | 603 | ||||||||||||||||||||||||
| Total Sales |
$ | 448 | $ | 651 | $ | 1,099 | $ | 386 | $ | 358 | $ | 354 | $ | 414 | $ | 1,512 | ||||||||||||||||
| Sales by Distribution Channel: |
||||||||||||||||||||||||||||||||
| Financial Intermediaries |
$ | 360 | $ | 541 | $ | 901 | $ | 299 | $ | 250 | $ | 239 | $ | 275 | $ | 1,063 | ||||||||||||||||
| Independent Producers |
82 | 103 | 185 | 82 | 99 | 109 | 131 | 421 | ||||||||||||||||||||||||
| Dedicated Sales Specialists |
6 | 7 | 13 | 5 | 9 | 6 | 8 | 28 | ||||||||||||||||||||||||
| Total Sales |
$ | 448 | $ | 651 | $ | 1,099 | $ | 386 | $ | 358 | $ | 354 | $ | 414 | $ | 1,512 | ||||||||||||||||
| PREMIUMS BY PRODUCT: |
||||||||||||||||||||||||||||||||
| Single Premium Immediate Annuities |
$ | 111 | $ | 165 | $ | 276 | $ | 124 | $ | 114 | $ | 124 | $ | 111 | $ | 473 | ||||||||||||||||
| Structured Settlements |
— | 2 | 2 | 11 | 4 | 27 | 43 | 85 | ||||||||||||||||||||||||
| Total Premiums |
$ | 111 | $ | 167 | $ | 278 | $ | 135 | $ | 118 | $ | 151 | $ | 154 | $ | 558 | ||||||||||||||||
| ASSETS UNDER MANAGEMENT: |
||||||||||||||||||||||||||||||||
| Fixed Annuities |
||||||||||||||||||||||||||||||||
| Account value, net of reinsurance, beginning of period |
$ | 12,141 | $ | 12,073 | $ | 12,073 | $ | 12,368 | $ | 12,886 | $ | 13,522 | $ | 13,972 | $ | 13,972 | ||||||||||||||||
| Deposits |
333 | 436 | 769 | 215 | 184 | 144 | 207 | 750 | ||||||||||||||||||||||||
| Surrenders, benefits and product charges |
(449 | ) | (474 | ) | (923 | ) | (618 | ) | (815 | ) | (899 | ) | (781 | ) | (3,113 | ) | ||||||||||||||||
| Net flows |
(116 | ) | (38 | ) | (154 | ) | (403 | ) | (631 | ) | (755 | ) | (574 | ) | (2,363 | ) | ||||||||||||||||
| Interest credited |
105 | 106 | 211 | 108 | 113 | 119 | 124 | 464 | ||||||||||||||||||||||||
| Account value, net of reinsurance, end of period |
12,130 | 12,141 | 12,130 | 12,073 | 12,368 | 12,886 | 13,522 | 12,073 | ||||||||||||||||||||||||
| Single Premium Immediate Annuities |
||||||||||||||||||||||||||||||||
| Account value, net of reinsurance, beginning of period |
6,781 | 6,668 | 6,668 | 6,458 | 6,367 | 6,261 | 6,174 | 6,174 | ||||||||||||||||||||||||
| Premiums and deposits |
188 | 291 | 479 | 226 | 247 | 261 | 237 | 971 | ||||||||||||||||||||||||
| Surrenders, benefits and product charges |
(278 | ) | (267 | ) | (545 | ) | (102 | ) | (241 | ) | (240 | ) | (234 | ) | (817 | ) | ||||||||||||||||
| Net flows |
(90 | ) | 24 | (66 | ) | 124 | 6 | 21 | 3 | 154 | ||||||||||||||||||||||
| Interest credited |
90 | 89 | 179 | 86 | 85 | 85 | 84 | 340 | ||||||||||||||||||||||||
| Account value, net of reinsurance, end of period |
6,781 | 6,781 | 6,781 | 6,668 | 6,458 | 6,367 | 6,261 | 6,668 | ||||||||||||||||||||||||
| Structured Settlements |
||||||||||||||||||||||||||||||||
| Account value, net of reinsurance, beginning of period |
1,105 | 1,103 | 1,103 | 1,092 | 1,088 | 1,058 | 1,011 | 1,011 | ||||||||||||||||||||||||
| Premiums and deposits |
1 | 2 | 3 | 12 | 5 | 30 | 47 | 94 | ||||||||||||||||||||||||
| Surrenders, benefits and product charges |
(13 | ) | (14 | ) | (27 | ) | (15 | ) | (15 | ) | (15 | ) | (14 | ) | (59 | ) | ||||||||||||||||
| Net flows |
(12 | ) | (12 | ) | (24 | ) | (3 | ) | (10 | ) | 15 | 33 | 35 | |||||||||||||||||||
| Interest credited |
14 | 14 | 28 | 14 | 14 | 15 | 14 | 57 | ||||||||||||||||||||||||
| Account value, net of reinsurance, end of period |
1,107 | 1,105 | 1,107 | 1,103 | 1,092 | 1,088 | 1,058 | 1,103 | ||||||||||||||||||||||||
| Total Retirement Income—Spread-Based, net of reinsurance |
$ | 20,018 | $ | 20,027 | $ | 20,018 | $ | 19,844 | $ | 19,918 | $ | 20,341 | $ | 20,841 | $ | 19,844 | ||||||||||||||||
8
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Sales and Assets Under Management—Institutional
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||
| SALES: |
||||||||||||||||||||||||
| Sales by Product: |
||||||||||||||||||||||||
| Guaranteed Investment Contracts (GICs) |
$ | 184 | $ | 44 | $ | 228 | $ | 32 | $ | 24 | $ | 42 | $ | 22 | $ | 120 | ||||||||
| Funding Agreements Backing Notes |
675 | 107 | 782 | 520 | 200 | 650 | 600 | 1,970 | ||||||||||||||||
| Funding Agreements |
75 | — | 75 | — | — | 315 | — | 315 | ||||||||||||||||
| Total Sales |
$ | 934 | $ | 151 | $ | 1,085 | $ | 552 | $ | 224 | $ | 1,007 | $ | 622 | $ | 2,405 | ||||||||
Institutional products are sold through specialized brokers and investment brokers, as well as directly to the contractholder.
| 2008 | 2007 | |||||||||||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||||||||||
| ASSETS UNDER MANAGEMENT: |
||||||||||||||||||||||||||||||||
| GICs, Funding Agreements and Funding Agreements Backing Notes |
||||||||||||||||||||||||||||||||
| Account value, net of reinsurance, beginning of period |
$ | 10,655 | $ | 10,982 | $ | 10,982 | $ | 11,292 | $ | 11,515 | $ | 10,724 | $ | 10,483 | $ | 10,483 | ||||||||||||||||
| Deposits(1) |
1,128 | 251 | 1,379 | 762 | 323 | 1,107 | 722 | 2,914 | ||||||||||||||||||||||||
| Surrenders and benefits(1) |
(1,099 | ) | (727 | ) | (1,826 | ) | (1,226 | ) | (710 | ) | (460 | ) | (629 | ) | (3,025 | ) | ||||||||||||||||
| Net flows |
29 | (476 | ) | (447 | ) | (464 | ) | (387 | ) | 647 | 93 | (111 | ) | |||||||||||||||||||
| Interest credited |
96 | 117 | 213 | 147 | 154 | 147 | 141 | 589 | ||||||||||||||||||||||||
| Foreign currency translation |
(7 | ) | 32 | 25 | 7 | 10 | (3 | ) | 7 | 21 | ||||||||||||||||||||||
| Account value, end of period |
$ | 10,773 | $ | 10,655 | $ | 10,773 | $ | 10,982 | $ | 11,292 | $ | 11,515 | $ | 10,724 | $ | 10,982 | ||||||||||||||||
| By Contract Type: |
||||||||||||||||||||||||||||||||
| Guaranteed Investment Contracts |
$ | 1,478 | $ | 1,449 | $ | 1,602 | $ | 1,790 | $ | 1,921 | $ | 2,073 | ||||||||||||||||||||
| Funding Agreements Backing Notes |
7,349 | 6,909 | 6,721 | 6,591 | 6,578 | 5,953 | ||||||||||||||||||||||||||
| Funding Agreements |
1,946 | 2,297 | 2,659 | 2,911 | 3,016 | 2,698 | ||||||||||||||||||||||||||
| $ | 10,773 | $ | 10,655 | $ | 10,982 | $ | 11,292 | $ | 11,515 | $ | 10,724 | |||||||||||||||||||||
| Funding Agreements By Liquidity Provisions: |
||||||||||||||||||||||||||||||||
| 90 day |
$ | 350 | $ | 180 | $ | 170 | $ | 270 | $ | 375 | $ | 425 | ||||||||||||||||||||
| 180 day |
200 | 345 | 500 | 500 | 500 | 450 | ||||||||||||||||||||||||||
| No put |
550 | 925 | 1,135 | 1,285 | 1,285 | 1,235 | ||||||||||||||||||||||||||
| Rolling maturity(2) |
840 | 840 | 840 | 840 | 840 | 575 | ||||||||||||||||||||||||||
| Accrued interest |
6 | 7 | 14 | 16 | 16 | 13 | ||||||||||||||||||||||||||
| Total funding agreements |
$ | 1,946 | $ | 2,297 | $ | 2,659 | $ | 2,911 | $ | 3,016 | $ | 2,698 | ||||||||||||||||||||
| (1) |
“Surrenders and benefits” include contracts that have matured but are redeposited with us and reflected as deposits. For the three months ended June 30, 2008 and 2007, surrenders and deposits that were redeposited and are now reflected under “Deposits” amounted to $195 million and $100 million, respectively. For the six months ended June 30, 2008 and 2007, surrenders and deposits included $295 million and $200 million, respectively, that were redeposited and reflected under “Deposits.” |
| (2) |
Includes products having a 12 and 13 month rolling maturity. |
9
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Sales and In-force—Life Insurance
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||
| SALES: |
||||||||||||||||||||||||
| Sales by Product: |
||||||||||||||||||||||||
| Term Life |
$ | 25 | $ | 23 | $ | 48 | $ | 26 | $ | 28 | $ | 29 | $ | 29 | $ | 112 | ||||||||
| Universal Life: |
||||||||||||||||||||||||
| Annualized first-year deposits |
14 | 13 | 27 | 14 | 15 | 15 | 11 | 55 | ||||||||||||||||
| Excess deposits |
46 | 43 | 89 | 64 | 53 | 41 | 48 | 206 | ||||||||||||||||
| Total Universal Life |
60 | 56 | 116 | 78 | 68 | 56 | 59 | 261 | ||||||||||||||||
| Total Sales |
$ | 85 | $ | 79 | $ | 164 | $ | 104 | $ | 96 | $ | 85 | $ | 88 | $ | 373 | ||||||||
| Sales by Distribution Channel: |
||||||||||||||||||||||||
| Financial Intermediaries |
$ | 1 | $ | 1 | $ | 2 | $ | 2 | $ | 1 | $ | 2 | $ | 1 | $ | 6 | ||||||||
| Independent Producers |
84 | 78 | 162 | 102 | 95 | 83 | 87 | 367 | ||||||||||||||||
| Total Sales |
$ | 85 | $ | 79 | $ | 164 | $ | 104 | $ | 96 | $ | 85 | $ | 88 | $ | 373 | ||||||||
| 2008 | 2007 | ||||||||||||||||||
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||
| IN-FORCE: |
|||||||||||||||||||
| Term life insurance |
|||||||||||||||||||
| Life insurance in-force, net of reinsurance |
$ | 481,430 | $ | 476,503 | $ | 464,411 | $ | 457,001 | $ | 449,654 | $ | 439,380 | |||||||
| Life insurance in-force before reinsurance |
$ | 621,221 | $ | 619,086 | $ | 618,379 | $ | 614,248 | $ | 610,071 | $ | 602,725 | |||||||
| Universal and whole life insurance |
|||||||||||||||||||
| Life insurance in-force, net of reinsurance |
$ | 42,833 | $ | 42,590 | $ | 42,181 | $ | 41,638 | $ | 41,303 | $ | 40,912 | |||||||
| Life insurance in-force before reinsurance |
$ | 51,851 | $ | 51,534 | $ | 51,175 | $ | 50,737 | $ | 50,290 | $ | 49,834 | |||||||
| Total life insurance |
|||||||||||||||||||
| Life insurance in-force, net of reinsurance |
$ | 524,263 | $ | 519,093 | $ | 506,592 | $ | 498,639 | $ | 490,957 | $ | 480,292 | |||||||
| Life insurance in-force before reinsurance |
$ | 673,072 | $ | 670,620 | $ | 669,554 | $ | 664,985 | $ | 660,361 | $ | 652,559 | |||||||
10
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Sales and Loss Ratios—Long-Term Care
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||||||||||
| SALES: |
||||||||||||||||||||||||||||||||
| Sales by Distribution Channel: |
||||||||||||||||||||||||||||||||
| Financial Intermediaries |
$ | 4 | $ | 6 | $ | 10 | $ | 7 | $ | 6 | $ | 7 | $ | 7 | $ | 27 | ||||||||||||||||
| Independent Producers |
24 | 23 | 47 | 25 | 25 | 23 | 24 | 97 | ||||||||||||||||||||||||
| Dedicated Sales Specialist |
16 | 15 | 31 | 13 | 13 | 11 | 10 | 47 | ||||||||||||||||||||||||
| Total Individual Long-Term Care |
44 | 44 | 88 | 45 | 44 | 41 | 41 | 171 | ||||||||||||||||||||||||
| Group Long-Term Care |
1 | 1 | 2 | 1 | — | 1 | — | 2 | ||||||||||||||||||||||||
| Medicare Supplement and Other A&H |
13 | 10 | 23 | 10 | 8 | 7 | 7 | 32 | ||||||||||||||||||||||||
| Linked-Benefits |
8 | 7 | 15 | 10 | 8 | 5 | 4 | 27 | ||||||||||||||||||||||||
| Total Sales |
$ | 66 | $ | 62 | $ | 128 | $ | 66 | $ | 60 | $ | 54 | $ | 52 | $ | 232 | ||||||||||||||||
| LOSS RATIOS: |
||||||||||||||||||||||||||||||||
| Total Long-Term Care |
||||||||||||||||||||||||||||||||
| Earned Premium |
$ | 459 | $ | 443 | $ | 902 | $ | 442 | $ | 444 | $ | 430 | $ | 419 | $ | 1,735 | ||||||||||||||||
| Loss Ratio(1) |
66.9 | % | 66.9 | % | 66.9 | % | 67.5 | % | 70.0 | % | 67.8 | % | 65.4 | % | 66.6 | % | ||||||||||||||||
| Gross Benefits Ratio(2) |
105.2 | % | 105.6 | % | 105.4 | % | 105.0 | % | 106.4 | % | 103.9 | % | 101.0 | % | 102.5 | % | ||||||||||||||||
| Medicare Supplement and A&H(3) |
||||||||||||||||||||||||||||||||
| Earned Premium |
$ | 68 | $ | 68 | $ | 136 | $ | 66 | $ | 65 | $ | 69 | $ | 67 | $ | 267 | ||||||||||||||||
| Loss Ratio(1) |
70.5 | % | 76.2 | % | 73.4 | % | 66.2 | % | 66.8 | % | 68.4 | % | 80.7 | % | 74.5 | % | ||||||||||||||||
| (1) |
We calculate the loss ratio for our long-term care insurance product by dividing benefits and other changes in policy reserves less tabular interest on reserves less loss adjustment expenses by net earned premiums. |
| (2) |
We calculate the gross benefits ratio by dividing the benefits and other changes in policy reserves by net earned premium. |
| (3) |
The Medicare Supplement and A&H earned premium and loss ratio does not include the linked-benefits product. |
11
12
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Sales—International Mortgage Insurance
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||
| SALES |
||||||||||||||||||||||||
| Canada New Insurance Written (NIW) |
||||||||||||||||||||||||
| Flow |
$ | 7,500 | $ | 4,900 | $ | 12,400 | $ | 8,100 | $ | 11,000 | $ | 9,600 | $ | 6,000 | $ | 34,700 | ||||||||
| Bulk |
800 | 1,500 | 2,300 | 7,800 | 1,300 | 11,900 | 400 | 21,400 | ||||||||||||||||
| Total Canada NIW(1) |
$ | 8,300 | $ | 6,400 | $ | 14,700 | $ | 15,900 | $ | 12,300 | $ | 21,500 | $ | 6,400 | $ | 56,100 | ||||||||
| Australia New Insurance Written (NIW) |
||||||||||||||||||||||||
| Flow |
$ | 10,000 | $ | 10,400 | $ | 20,400 | $ | 11,600 | $ | 11,400 | $ | 11,600 | $ | 10,800 | $ | 45,400 | ||||||||
| Bulk |
600 | 1,000 | 1,600 | 900 | 7,000 | 5,900 | 2,300 | 16,100 | ||||||||||||||||
| Total Australia NIW(2) |
$ | 10,600 | $ | 11,400 | $ | 22,000 | $ | 12,500 | $ | 18,400 | $ | 17,500 | $ | 13,100 | $ | 61,500 | ||||||||
| Other International New Insurance Written (NIW) |
||||||||||||||||||||||||
| Flow |
$ | 2,100 | $ | 2,300 | $ | 4,400 | $ | 3,300 | $ | 4,700 | $ | 5,100 | $ | 4,900 | $ | 18,000 | ||||||||
| Bulk |
500 | 700 | 1,200 | 900 | 800 | 400 | 3,800 | 5,900 | ||||||||||||||||
| Total Other International NIW(3) |
$ | 2,600 | $ | 3,000 | $ | 5,600 | $ | 4,200 | $ | 5,500 | $ | 5,500 | $ | 8,700 | $ | 23,900 | ||||||||
| (1) |
New insurance written for our Canada platform adjusted for foreign exchange was $7,700 million and $13,200 million for the three and six months ended June 30, 2008, respectively. |
| (2) |
New insurance written for our Australia platform adjusted for foreign exchange was $9,400 million and $19,300 million for the three and six months ended June 30, 2008, respectively. |
| (3) |
New insurance written for our Other International platform adjusted for foreign exchange was $2,300 million and $5,000 million for the three and six months ended June 30, 2008, respectively. |
13
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Selected Key Performance Measures—International Mortgage Insurance
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||||||||||
| Net Premiums Written |
||||||||||||||||||||||||||||||||
| Canada |
$198 | $130 | $ | 328 | $225 | $301 | $262 | $137 | $925 | |||||||||||||||||||||||
| Australia |
89 | 97 | 186 | 109 | 102 | 108 | 102 | 421 | ||||||||||||||||||||||||
| Other International |
5 | 18 | 23 | 28 | 49 | 58 | 83 | 218 | ||||||||||||||||||||||||
| Total International Net Premiums Written |
$292 | $245 | $ | 537 | $362 | $452 | $428 | $322 | $ | 1,564 | ||||||||||||||||||||||
| Loss Ratio(1) |
||||||||||||||||||||||||||||||||
| Canada |
21 | % | 26 | % | 24 | % | 18 | % | 18 | % | 17 | % | 16 | % | 18 | % | ||||||||||||||||
| Australia |
41 | % | 41 | % | 41 | % | 46 | % | 49 | % | 47 | % | 46 | % | 47 | % | ||||||||||||||||
| Other International |
70 | % | 71 | % | 71 | % | 33 | % | 38 | % | 37 | % | 24 | % | 33 | % | ||||||||||||||||
| Total International Loss Ratio |
33 | % | 37 | % | 35 | % | 29 | % | 32 | % | 31 | % | 29 | % | 30 | % | ||||||||||||||||
| Expense Ratio(2) |
||||||||||||||||||||||||||||||||
| Canada |
16 | % | 23 | % | 19 | % | 13 | % | 12 | % | 7 | % | 12 | % | 11 | % | ||||||||||||||||
| Australia |
27 | % | 27 | % | 27 | % | 18 | % | 18 | % | 17 | % | 17 | % | 17 | % | ||||||||||||||||
| Other International |
362 | % | 104 | % | 163 | % | 100 | % | 38 | % | 34 | % | 23 | % | 40 | % | ||||||||||||||||
| Total International Expense Ratio |
25 | % | 31 | % | 28 | % | 22 | % | 16 | % | 13 | % | 16 | % | 17 | % | ||||||||||||||||
| Expense Ratio Adjusted for Canada Reclassification |
||||||||||||||||||||||||||||||||
| Canada |
9 | % | 10 | % | 15 | % | 11 | % | ||||||||||||||||||||||||
| Total International Expense Ratio |
14 | % | 15 | % | 18 | % | 17 | % | ||||||||||||||||||||||||
| Primary Insurance In-force |
||||||||||||||||||||||||||||||||
| Canada |
$ | 194,100 | $ | 185,000 | $ | 187,900 | $ | 172,400 | $ | 150,000 | $ | 119,700 | ||||||||||||||||||||
| Australia |
249,900 | 234,600 | 221,400 | 224,500 | 205,100 | 185,200 | ||||||||||||||||||||||||||
| Other International |
71,500 | 72,400 | 68,500 | 65,000 | 59,800 | 56,000 | ||||||||||||||||||||||||||
| Total International Primary Insurance In-force |
$ | 515,500 | $ | 492,000 | $ | 477,800 | $ | 461,900 | $ | 414,900 | $ | 360,900 | ||||||||||||||||||||
| Primary Risk In-force(3) |
||||||||||||||||||||||||||||||||
| Canada |
||||||||||||||||||||||||||||||||
| Flow |
$ | 53,400 | $ | 50,700 | $ | 51,200 | $ | 48,400 | $ | 41,800 | $ | 35,900 | ||||||||||||||||||||
| Bulk |
14,500 | 14,100 | 14,600 | 11,900 | 10,700 | 6,000 | ||||||||||||||||||||||||||
| Total Canada |
67,900 | 64,800 | 65,800 | 60,300 | 52,500 | 41,900 | ||||||||||||||||||||||||||
| Australia |
||||||||||||||||||||||||||||||||
| Flow |
76,500 | 71,600 | 67,200 | 68,200 | 64,100 | 59,300 | ||||||||||||||||||||||||||
| Bulk |
11,000 | 10,500 | 10,300 | 10,400 | 7,700 | 5,500 | ||||||||||||||||||||||||||
| Total Australia |
87,500 | 82,100 | 77,500 | 78,600 | 71,800 | 64,800 | ||||||||||||||||||||||||||
| Other International |
||||||||||||||||||||||||||||||||
| Flow |
7,900 | 8,000 | 7,400 | 7,200 | 6,400 | 5,800 | ||||||||||||||||||||||||||
| Bulk |
800 | 800 | 700 | 700 | 900 | 1,100 | ||||||||||||||||||||||||||
| Total Other International |
8,700 | 8,800 | 8,100 | 7,900 | 7,300 | 6,900 | ||||||||||||||||||||||||||
| Total International Primary Risk In-force |
$ | 164,100 | $ | 155,700 | $ | 151,400 | $ | 146,800 | $ | 131,600 | $ | 113,600 | ||||||||||||||||||||
The loss and expense ratios included above are calculated using whole dollars and may be different than the ratios calculated using the rounded numbers included herein.
| (1) |
The ratio of incurred losses and loss adjustment expense to net premiums earned. In determining the pricing of our mortgage insurance products, we develop a pricing loss ratio which uses industry and company loss experience over a number of years, which incorporates both favorable and unfavorable economic environments, differing coverage levels and varying capital requirements. Actual results may vary from pricing loss ratios for a number of reasons, which include differing economic conditions and actual individual product and lender performance. New business pricing loss ratios for our international businesses are as follows: Canada 35-40%, Australia 30-40% and Europe 60-65%. |
| (2) |
The ratio of an insurer’s general expenses to net premiums written. In our business, general expenses consist of acquisition and insurance expenses, net of deferrals, and amortization of DAC and intangibles. |
| (3) |
Our businesses in Australia, New Zealand and Canada currently provide 100% coverage on the majority of the loans we insure in those markets. For the purpose of representing our risk in-force, we have computed an “Effective Risk In-force” amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents our highest expected average per-claim payment for any one underwriting year over the life of our businesses in Australia, New Zealand and Canada. This factor was 35% for all periods presented. |
14
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Selected Key Performance Measures—International Mortgage Insurance—Canada
(dollar amounts in millions)
| Primary Insurance |
June 30, 2008 |
March 31, 2008 |
June 30, 2007 |
||||||||
| Insured loans in-force |
1,108,423 | 1,080,874 | 955,063 | ||||||||
| Insured delinquent loans |
2,340 | 2,410 | 1,704 | ||||||||
| Insured delinquency rate |
0.21 | % | 0.22 | % | 0.18 | % | |||||
| Flow loans in-force |
842,863 | 815,980 | 727,342 | ||||||||
| Flow delinquent loans |
2,140 | 2,198 | 1,576 | ||||||||
| Flow delinquency rate |
0.25 | % | 0.27 | % | 0.22 | % | |||||
| Bulk loans in-force |
265,560 | 264,894 | 227,721 | ||||||||
| Bulk delinquent loans |
200 | 212 | 128 | ||||||||
| Bulk delinquency rate |
0.08 | % | 0.08 | % | 0.06 | % | |||||
| Loss Metrics |
June 30, 2008 |
||||||||||
| Beginning Reserves |
$ | 106 | |||||||||
| Paid claims |
(20 | ) | |||||||||
| Increase (decrease) in reserves |
30 | ||||||||||
| Impact of changes in foreign exchange rates |
1 | ||||||||||
| Ending Reserves |
$ | 117 | |||||||||
| June 30, 2008 | March 31, 2008 | ||||||||||
| Province and Territory |
% of Primary Risk In-force |
Primary Delinquency Rate |
% of Primary Risk In-force |
||||||||
| Ontario |
48 | % | 0.23 | % | 49 | % | |||||
| British Columbia |
16 | 0.09 | % | 16 | |||||||
| Alberta |
15 | 0.18 | % | 14 | |||||||
| Quebec |
14 | 0.25 | % | 13 | |||||||
| Nova Scotia |
2 | 0.20 | % | 2 | |||||||
| Saskatchewan |
2 | 0.08 | % | 1 | |||||||
| Manitoba |
1 | 0.11 | % | 1 | |||||||
| New Brunswick |
1 | 0.31 | % | 1 | |||||||
| All Other |
1 | 0.16 | % | 3 | |||||||
| Total |
100 | % | 0.20 | % | 100 | % | |||||
| By Policy Year |
|||||||||||
| 2000 and Prior |
9 | % | 0.04 | % | 9 | % | |||||
| 2001 |
3 | 0.07 | % | 3 | |||||||
| 2002 |
5 | 0.08 | % | 6 | |||||||
| 2003 |
7 | 0.14 | % | 7 | |||||||
| 2004 |
11 | 0.20 | % | 11 | |||||||
| 2005 |
12 | 0.29 | % | 12 | |||||||
| 2006 |
15 | 0.45 | % | 16 | |||||||
| 2007 |
30 | 0.24 | % | 32 | |||||||
| 2008 |
8 | 0.01 | % | 4 | |||||||
| Total |
100 | % | 0.20 | % | 100 | % | |||||
| Loan Amount (in CAD)(1) |
|||||||||||
| Over $250K |
33 | % | 33 | % | |||||||
| Over $100K to $250K |
58 | 59 | |||||||||
| $100K or Less |
9 | 8 | |||||||||
| Total |
100 | % | 100 | % | |||||||
| Average Primary Loan Size (CAD in thousands)(1) |
$ | 178 | $ | 176 | |||||||
| (1) |
Loan amount and size presented in Canadian dollars. |
15
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Selected Key Performance Measures—International Mortgage Insurance—Australia
(dollar amounts in millions)
| Primary Insurance |
June 30, 2008 |
March 31, 2008 |
June 30, 2007 |
||||||||
| Insured loans in-force |
1,422,851 | 1,406,731 | 1,390,164 | ||||||||
| Insured delinquent loans |
5,026 | 4,571 | 4,584 | ||||||||
| Insured delinquency rate |
0.35 | % | 0.32 | % | 0.33 | % | |||||
| Flow loans in-force |
1,240,020 | 1,222,667 | 1,240,566 | ||||||||
| Flow delinquent loans |
4,926 | 4,489 | 4,485 | ||||||||
| Flow delinquency rate |
0.40 | % | 0.37 | % | 0.36 | % | |||||
| Bulk loans in-force |
182,831 | 184,064 | 149,598 | ||||||||
| Bulk delinquent loans |
100 | 82 | 99 | ||||||||
| Bulk delinquency rate |
0.05 | % | 0.04 | % | 0.07 | % | |||||
| Loss Metrics |
June 30, 2008 |
||||||||||
| Beginning Reserves |
$ | 157 | |||||||||
| Paid claims |
(36 | ) | |||||||||
| Increase (decrease) in reserves |
35 | ||||||||||
| Impact of changes in foreign exchange rates |
8 | ||||||||||
| Ending Reserves |
$ | 164 | |||||||||
| June 30, 2008 | March 31, 2008 | ||||||||||
| State and Territory |
% of Primary Risk In-force |
Primary Delinquency Rate |
% of Primary Risk In-force |
||||||||
| New South Wales |
33 | % | 0.67 | % | 33 | % | |||||
| Victoria |
22 | 0.32 | % | 22 | |||||||
| Queensland |
21 | 0.17 | % | 21 | |||||||
| Western Australia |
10 | 0.13 | % | 10 | |||||||
| South Australia |
5 | 0.20 | % | 5 | |||||||
| New Zealand |
4 | 0.30 | % | 4 | |||||||
| Australian Capital Territory |
2 | 0.08 | % | 2 | |||||||
| Tasmania |
2 | 0.14 | % | 2 | |||||||
| Northern Territory |
1 | 0.08 | % | 1 | |||||||
| Total |
100 | % | 0.35 | % | 100 | % | |||||
| By Policy Year |
|||||||||||
| 2000 and Prior |
10 | % | 0.04 | % | 10 | % | |||||
| 2001 |
4 | 0.06 | % | 4 | |||||||
| 2002 |
6 | 0.11 | % | 7 | |||||||
| 2003 |
8 | 0.27 | % | 8 | |||||||
| 2004 |
10 | 0.58 | % | 11 | |||||||
| 2005 |
15 | 0.72 | % | 15 | |||||||
| 2006 |
19 | 0.66 | % | 20 | |||||||
| 2007 |
20 | 0.32 | % | 20 | |||||||
| 2008 |
8 | 0.03 | % | 5 | |||||||
| Total |
100 | % | 0.35 | % | 100 | % | |||||
| Loan Amount (in AUD)(1) |
|||||||||||
| Over $250K |
54 | % | 53 | % | |||||||
| Over $100K to $250K |
37 | 38 | |||||||||
| $100K or Less |
9 | 9 | |||||||||
| Total |
100 | % | 100 | % | |||||||
| Average Primary Loan Size (AUD in thousands)(1) |
$ | 183 | $ | 183 | |||||||
| (1) |
Loan amount and size presented in Australian dollars. |
16
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Selected Key Performance Measures—International Mortgage Insurance
(amounts in millions)
| June 30, 2008 | March 31, 2008 | |||||||||||||||||
| Risk In-force by Loan-To-Value Ratio(1) |
Primary | Flow | Bulk | Primary | Flow | Bulk | ||||||||||||
| Canada |
||||||||||||||||||
| 95.01% and above |
$ | 21,563 | $ | 21,563 | $ | — | $ | 20,108 | $ | 20,108 | $ | — | ||||||
| 90.01% to 95.00% |
18,271 | 18,269 | 3 | 17,471 | 17,468 | 3 | ||||||||||||
| 80.01% to 90.00% |
12,138 | 11,512 | 626 | 11,568 | 11,084 | 484 | ||||||||||||
| 80.00% and below |
15,966 | 2,119 | 13,847 | 15,592 | 2,012 | 13,580 | ||||||||||||
| Total Canada |
$ | 67,938 | $ | 53,463 | $ | 14,476 | $ | 64,739 | $ | 50,672 | $ | 14,067 | ||||||
| Australia |
||||||||||||||||||
| 95.01% and above |
$ | 9,873 | $ | 9,872 | $ | 1 | $ | 8,773 | $ | 8,772 | $ | 1 | ||||||
| 90.01% to 95.00% |
14,899 | 14,883 | 16 | 13,949 | 13,933 | 16 | ||||||||||||
| 80.01% to 90.00% |
21,091 | 20,919 | 172 | 19,849 | 19,681 | 168 | ||||||||||||
| 80.00% and below |
41,582 | 30,780 | 10,802 | 39,544 | 29,223 | 10,321 | ||||||||||||
| Total Australia |
$ | 87,445 | $ | 76,454 | $ | 10,991 | $ | 82,115 | $ | 71,609 | $ | 10,506 | ||||||
| Other International |
||||||||||||||||||
| 95.01% and above |
$ | 2,644 | $ | 2,564 | $ | 81 | $ | 2,692 | $ | 2,607 | $ | 85 | ||||||
| 90.01% to 95.00% |
3,261 | 3,153 | 107 | 3,288 | 3,190 | 98 | ||||||||||||
| 80.01% to 90.00% |
2,558 | 2,031 | 526 | 2,604 | 2,083 | 521 | ||||||||||||
| 80.00% and below |
244 | 166 | 78 | 236 | 157 | 79 | ||||||||||||
| Total Other International |
$ | 8,707 | $ | 7,914 | $ | 792 | $ | 8,820 | $ | 8,037 | $ | 783 | ||||||
Amounts may not total due to rounding.
| (1) |
Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable. |
17
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Sales—Payment Protection Insurance
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||
| SALES |
||||||||||||||||||||||||
| Payment Protection |
||||||||||||||||||||||||
| Traditional indemnity premiums |
$ | 390 | $ | 334 | $ | 724 | $ | 362 | $ | 378 | $ | 584 | $ | 364 | $ | 1,688 | ||||||||
| Premium equivalents for administrative services only business |
30 | 35 | 65 | 33 | 44 | 40 | 50 | 167 | ||||||||||||||||
| Reinsurance premiums assumed accounted for under the deposit method |
301 | 270 | 571 | 253 | 232 | 244 | 172 | 901 | ||||||||||||||||
| Total Payment Protection(1) |
721 | 639 | 1,360 | 648 | 654 | 868 | 586 | 2,756 | ||||||||||||||||
| Mexico operations |
20 | 21 | 41 | 22 | 19 | 18 | 19 | 78 | ||||||||||||||||
| Total Sales |
$ | 741 | $ | 660 | $ | 1,401 | $ | 670 | $ | 673 | $ | 886 | $ | 605 | $ | 2,834 | ||||||||
| SALES BY REGION |
||||||||||||||||||||||||
| Payment Protection |
||||||||||||||||||||||||
| Established European Regions |
||||||||||||||||||||||||
| Western region |
$ | 120 | $ | 130 | $ | 250 | $ | 129 | $ | 173 | $ | 175 | $ | 198 | $ | 675 | ||||||||
| Central region |
182 | 153 | 335 | 150 | 157 | 146 | 122 | 575 | ||||||||||||||||
| Southern region |
174 | 137 | 311 | 152 | 127 | 145 | 112 | 536 | ||||||||||||||||
| Nordic region |
97 | 85 | 182 | 78 | 73 | 77 | 68 | 296 | ||||||||||||||||
| New Markets |
63 | 56 | 119 | 61 | 50 | 43 | 34 | 188 | ||||||||||||||||
| Structured Deals(2) |
85 | 78 | 163 | 78 | 74 | 282 | 52 | 486 | ||||||||||||||||
| Total Payment Protection |
721 | 639 | 1,360 | 648 | 654 | 868 | 586 | 2,756 | ||||||||||||||||
| Mexico operations |
20 | 21 | 41 | 22 | 19 | 18 | 19 | 78 | ||||||||||||||||
| Total Sales |
$ | 741 | $ | 660 | $ | 1,401 | $ | 670 | $ | 673 | $ | 886 | $ | 605 | $ | 2,834 | ||||||||
| (1) |
Sales adjusted for foreign exchange for our payment protection insurance business was $645 million and $1,223 million for the three months and six months ended June 30, 2008, respectively. |
| (2) |
Structured deals represent in-force blocks of business acquired through reinsurance arrangements and ongoing reciprocal arrangements in place with certain clients. |
18
19
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Sales—U.S. Mortgage Insurance
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||
| SALES |
||||||||||||||||||||||||
| New Insurance Written (NIW) |
||||||||||||||||||||||||
| Flow |
$ | 14,000 | $ | 15,000 | $ | 29,000 | $ | 16,000 | $ | 13,200 | $ | 10,800 | $ | 6,900 | $ | 46,900 | ||||||||
| Bulk |
400 | 100 | 500 | 2,200 | 2,800 | 11,100 | 6,100 | 22,200 | ||||||||||||||||
| Pool |
200 | 100 | 300 | 100 | 100 | 200 | 100 | 500 | ||||||||||||||||
| Total U.S. Mortgage NIW |
$ | 14,600 | $ | 15,200 | $ | 29,800 | $ | 18,300 | $ | 16,100 | $ | 22,100 | $ | 13,100 | $ | 69,600 | ||||||||
20
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Growth Metrics—U.S. Mortgage Insurance
(amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||||||||||
| Net Premiums Written |
$ | 214 | $ | 202 | $ | 416 | $ | 188 | $ | 167 | $ | 152 | $ | 140 | $ | 647 | ||||||||||||||||
| New Risk Written |
||||||||||||||||||||||||||||||||
| Flow |
$ | 3,465 | $ | 3,768 | $ | 7,233 | $ | 4,117 | $ | 3,330 | $ | 2,658 | $ | 1,695 | $ | 11,800 | ||||||||||||||||
| Bulk(1) |
25 | 4 | 29 | 42 | 62 | 320 | 195 | 619 | ||||||||||||||||||||||||
| Total Primary |
3,490 | 3,772 | 7,262 | 4,159 | 3,392 | 2,978 | 1,890 | 12,419 | ||||||||||||||||||||||||
| Pool |
7 | 5 | 12 | 6 | 5 | 7 | 3 | 21 | ||||||||||||||||||||||||
| Total New Risk Written |
$ | 3,497 | $ | 3,777 | $ | 7,274 | $ | 4,165 | $ | 3,397 | $ | 2,985 | $ | 1,893 | $ | 12,440 | ||||||||||||||||
| Primary Insurance In-force |
$ | 174,900 | $ | 166,700 | $ | 157,600 | $ | 144,800 | $ | 135,500 | $ | 120,500 | ||||||||||||||||||||
| Risk In-force |
||||||||||||||||||||||||||||||||
| Flow |
$ | 34,667 | $ | 32,398 | $ | 29,817 | $ | 26,687 | $ | 24,442 | $ | 23,013 | ||||||||||||||||||||
| Bulk(1) |
1,371 | 1,355 | 1,361 | 1,323 | 1,268 | 952 | ||||||||||||||||||||||||||
| Total Primary |
36,038 | 33,753 | 31,178 | 28,010 | 25,710 | 23,965 | ||||||||||||||||||||||||||
| Pool |
381 | 383 | 393 | 414 | 428 | 436 | ||||||||||||||||||||||||||
| Total Risk In-force |
$ | 36,419 | $ | 34,136 | $ | 31,571 | $ | 28,424 | $ | 26,138 | $ | 24,401 | ||||||||||||||||||||
| Other Metrics—U.S. Mortgage Insurance |
||||||||||||||||||||||||||||||||
| GAAP Basis Expense Ratio(2) |
25 | % | 25 | % | 25 | % | 25 | % | 25 | % | 28 | % | 29 | % | 27 | % | ||||||||||||||||
| Adjusted Expense Ratio(3) |
22 | % | 23 | % | 22 | % | 23 | % | 24 | % | 27 | % | 29 | % | 25 | % | ||||||||||||||||
| Flow Persistency |
85 | % | 83 | % | 85 | % | 82 | % | 78 | % | 78 | % | ||||||||||||||||||||
| Gross written premiums ceded to captives/total direct written premiums |
20 | % | 20 | % | 21 | % | 21 | % | 22 | % | 22 | % | ||||||||||||||||||||
| Risk to Capital Ratio(4) |
13.2:1 | 12.4:1 | 11.3:1 | 9.2:1 | 8.8:1 | 8.8:1 | ||||||||||||||||||||||||||
| Average primary loan size (in thousands) |
$ | 169 | $ | 166 | $ | 164 | $ | 160 | ||||||||||||||||||||||||
| Primary risk in-force subject to captives |
55 | % | 58 | % | 60 | % | 61 | % | ||||||||||||||||||||||||
| Primary risk in-force that is GSE conforming |
95 | % | 95 | % | 95 | % | 95 | % | ||||||||||||||||||||||||
| Interest only risk in-force with initial reset > 5 years |
95 | % | 94 | % | 94 | % | 93 | % | ||||||||||||||||||||||||
| Primary risk in-force with potential to reset in 2008(5) |
1.3 | % | 1.4 | % | 1.6 | % | 2.0 | % | ||||||||||||||||||||||||
| Primary risk in-force with potential to reset in 2009(5) |
1.4 | % | 1.6 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||
The expense ratios included above are calculated using whole dollars and may be different than the ratios calculated using the rounded numbers included herein.
| (1) |
The amounts previously presented for new risk written and risk in-force have been revised to exclude deductible amounts specific to our GSE Alt-A and portfolio deals where we are in a first loss position. |
| (2) |
The ratio of an insurer’s general expenses to net earned premiums. In our business, general expenses consist of acquisition and insurance expenses, net of deferrals, and amortization of DAC and intangibles. |
| (3) |
The ratio of an insurer’s general expenses to net written premiums. In our business, general expenses consist of acquisition and insurance expenses, net of deferrals, and amortization of DAC and intangibles. |
| (4) |
Certain states limit a private mortgage insurer’s risk in-force to 25 times the total of the insurer’s policyholders’ surplus plus the statutory contingent reserve, commonly known as the “risk to capital” requirement. The risk to capital ratio for our U.S. mortgage insurance business was computed as of the beginning of the period indicated. |
| (5) |
Represents < 5 year adjustable rate mortgages with 2% annual adjustment cap. |
21
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Loss Metrics—U.S. Mortgage Insurance
(dollar amounts in millions)
| 2008 | 2007 | |||||||||||||||||||||||||||||||
| Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | |||||||||||||||||||||||||
| Paid Claims |
||||||||||||||||||||||||||||||||
| Flow |
$ | 89 | $ | 79 | $ | 168 | $ | 64 | $ | 49 | $ | 40 | $ | 38 | $ | 191 | ||||||||||||||||
| Bulk |
3 | 5 | 8 | 1 | — | 1 | — | 2 | ||||||||||||||||||||||||
| Total Primary |
92 | 84 | 176 | 65 | 49 | 41 | 38 | 193 | ||||||||||||||||||||||||
| Pool |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| Total Paid Claims |
$ | 92 | $ | 84 | $ | 176 | $ | 65 | $ | 49 | $ | 41 | $ | 38 | $ | 193 | ||||||||||||||||
| Average Paid Claim (in thousands) |
$ | 42.9 | $ | 42.4 | $ | 39.2 | $ | 35.8 | $ | 32.5 | $ | 32.2 | ||||||||||||||||||||
| Number of Primary Delinquencies |
||||||||||||||||||||||||||||||||
| Flow |
46,700 | 38,316 | 35,489 | 27,609 | 22,970 | 21,804 | ||||||||||||||||||||||||||
| Bulk(1) |
11,105 | 8,210 | 5,470 | 3,147 | 2,086 | 1,566 | ||||||||||||||||||||||||||
| Average Reserve Per Delinquency (in thousands) |
||||||||||||||||||||||||||||||||
| Flow |
$ | 19.1 | $ | 15.8 | $ | 12.4 | $ | 12.0 | $ | 11.4 | $ | 11.3 | ||||||||||||||||||||
| Bulk(1) |
7.3 | 6.8 | 5.1 | 4.4 | 3.1 | 2.1 | ||||||||||||||||||||||||||
| Beginning Reserves |
$ | 661 | $ | 467 | $ | 467 | $ | 345 | $ | 270 | $ | 251 | $ | 237 | $ | 237 | ||||||||||||||||
| Paid claims |
(92 | ) | (84 | ) | (176 | ) | (65 | ) | (49 | ) | (41 | ) | (38 | ) | (193 | ) | ||||||||||||||||
| Increase (decrease) in reserves |
404 | 278 | 682 | 187 | 124 | 60 | 52 | 423 | ||||||||||||||||||||||||
| Ending Reserves |
$ | 973 | $ | 661 | $ | 973 | $ | 467 | $ | 345 | $ | 270 | $ | 251 | $ | 467 | ||||||||||||||||
| Captive Reinsurance Recoverable(2) |
$ | 131 | $ | 21 | $ | 2 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||||
| Loss Ratio(3) |
155 | % | 142 | % | 149 | % | 109 | % | 78 | % | 41 | % | 38 | % | 68 | % | ||||||||||||||||
|
The loss ratio included above is calculated using whole dollars and may be different than the ratio calculated using the rounded numbers included herein.
(1) The reserve per delinquency calculation includes loans where we were in a secondary loss position for which no reserve has been established due to an existing deductible. Excluding these loans, the number of delinquencies for bulk loans were as follows: |
| |||||||||||||||||||||||||||||||
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||
| 4,475 | 3,768 | 2,404 | 1,338 | 881 | 554 | |||||||||||||||||||||||||||
| (2) |
Reinsurance recoverable includes amounts for book years of business that have reached specified captive attachment levels under non-quota share captive reinsurance arrangements. These amounts do not include captive benefit and paid claim recoveries under quota share and non-captive reinsurance arrangements or any ceded unearned premium recoveries. |
| (3) |
The ratio of incurred losses and loss adjustment expense to net premiums earned. |
22
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Portfolio Quality Metrics—U.S. Mortgage Insurance
| 2008 | 2007 | |||||||||||||||||
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||
| Risk In-force by Credit Quality(1) |
||||||||||||||||||
| Primary by FICO Scores >679 (%) |
62 | % | 60 | % | 59 | % | 59 | % | 59 | % | 60 | % | ||||||
| Primary by FICO Scores 620-679 |
30 | % | 31 | % | 32 | % | 32 | % | 32 | % | 32 | % | ||||||
| Primary by FICO Scores 575-619 |
6 | % | 7 | % | 7 | % | 7 | % | 7 | % | 6 | % | ||||||
| Primary by FICO Scores <575 |
2 | % | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||
| Flow by FICO Scores >679 (%) |
60 | % | 59 | % | 58 | % | 58 | % | 58 | % | 58 | % | ||||||
| Flow by FICO Scores 620-679 |
31 | % | 32 | % | 33 | % | 33 | % | 33 | % | 33 | % | ||||||
| Flow by FICO Scores 575-619 |
7 | % | 7 | % | 7 | % | 7 | % | 7 | % | 7 | % | ||||||
| Flow by FICO Scores <575 |
2 | % | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||
| Bulk by FICO Scores >679 (%) |
84 | % | 84 | % | 83 | % | 83 | % | 84 | % | 83 | % | ||||||
| Bulk by FICO Scores 620-679 |
14 | % | 14 | % | 15 | % | 15 | % | 14 | % | 15 | % | ||||||
| Bulk by FICO Scores 575-619 |
1 | % | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||
| Bulk by FICO Scores <575 |
1 | % | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||
| Primary A minus and sub-prime |
12 | % | 13 | % | 13 | % | 13 | % | 12 | % | 12 | % | ||||||
| Primary Loans |
||||||||||||||||||
| Insured loans in-force |
1,034,697 | 1,001,430 | 963,218 | 905,412 | 858,550 | 800,110 | ||||||||||||
| Insured delinquent loans |
57,805 | 46,526 | 40,959 | 30,756 | 25,056 | 23,370 | ||||||||||||
| Insured delinquency rate |
5.59 | % | 4.65 | % | 4.25 | % | 3.40 | % | 2.92 | % | 2.92 | % | ||||||
| Flow loans in-force |
849,292 | 812,061 | 769,481 | 715,970 | 674,730 | 646,004 | ||||||||||||
| Flow delinquent loans |
46,700 | 38,316 | 35,489 | 27,609 | 22,970 | 21,804 | ||||||||||||
| Flow delinquency rate |
5.50 | % | 4.72 | % | 4.61 | % | 3.86 | % | 3.40 | % | 3.38 | % | ||||||
| Bulk loans in-force |
185,405 | 189,369 | 193,737 | 189,442 | 183,820 | 154,106 | ||||||||||||
| Bulk delinquent loans(2) |
11,105 | 8,210 | 5,470 | 3,147 | 2,086 | 1,566 | ||||||||||||
| Bulk delinquency rate |
5.99 | % | 4.34 | % | 2.82 | % | 1.66 | % | 1.13 | % | 1.02 | % | ||||||
| A minus and sub-prime loans in-force |
110,979 | 112,383 | 109,262 | 100,512 | 89,023 | 79,405 | ||||||||||||
| A minus and sub-prime delinquent loans |
16,171 | 13,254 | 12,863 | 9,632 | 7,646 | 6,875 | ||||||||||||
| A minus and sub-prime delinquency rate |
14.57 | % | 11.79 | % | 11.77 | % | 9.58 | % | 8.59 | % | 8.66 | % | ||||||
| Pool Loans |
||||||||||||||||||
| Insured loans in-force |
20,266 | 19,536 | 19,081 | 21,118 | 20,653 | 20,074 | ||||||||||||
| Pool delinquent loans |
464 | 415 | 428 | 442 | 398 | 415 | ||||||||||||
| Pool delinquency rate |
2.29 | % | 2.12 | % | 2.24 | % | 2.09 | % | 1.93 | % | 2.07 | % | ||||||
|
(1) Loans with unknown FICO scores are included in the 620-679 category (2) Includes loans where we were in a secondary loss position for which no reserve has been established due to an existing deductible. Excluding these loans, bulk delinquent loans were as follows: |
| |||||||||||||||||
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||
| 4,475 | 3,768 | 2,404 | 1,338 | 881 | 554 | |||||||||||||
23
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Portfolio Quality Metrics—U.S. Mortgage Insurance
| June 30, 2008 | March 31, 2008 | June 30, 2007 | ||||||||||||||||
| % of Primary Risk In-force |
Primary Delinquency Rate |
% of Primary Risk In-force |
Primary Delinquency Rate |
% of Primary Risk In-force |
Primary Delinquency Rate |
|||||||||||||
| By Region |
||||||||||||||||||
| Southeast(1) |
24 | % | 7.54 | % | 25 | % | 6.16 | % | 26 | % | 3.33 | % | ||||||
| South Central(2) |
17 | 4.52 | % | 17 | 3.77 | % | 17 | 2.73 | % | |||||||||
| Northeast(3) |
13 | 4.52 | % | 13 | 3.97 | % | 13 | 3.12 | % | |||||||||
| Pacific(4) |
12 | 7.11 | % | 11 | 5.11 | % | 9 | 1.59 | % | |||||||||
| North Central(5) |
11 | 4.55 | % | 11 | 3.89 | % | 12 | 2.70 | % | |||||||||
| Great Lakes(6) |
8 | 6.12 | % | 8 | 5.51 | % | 9 | 4.42 | % | |||||||||
| Plains(7) |
6 | 3.13 | % | 6 | 2.91 | % | 6 | 2.26 | % | |||||||||
| Mid-Atlantic(8) |
5 | 4.60 | % | 5 | 3.70 | % | 4 | 2.05 | % | |||||||||
| New England(9) |
4 | 4.83 | % | 4 | 4.21 | % | 4 | 2.55 | % | |||||||||
| Total |
100 | % | 5.59 | % | 100 | % | 4.65 | % | 100 | % | 2.92 | % | ||||||
| By State |
||||||||||||||||||
| Florida |
9 | % | 12.57 | % | 9 | % | 9.61 | % | 9 | % | 2.95 | % | ||||||
| Texas |
7 | % | 4.02 | % | 7 | % | 3.62 | % | 7 | % | 3.20 | % | ||||||
| California |
6 | % | 9.28 | % | 6 | % | 6.63 | % | 4 | % | 1.40 | % | ||||||
| New York |
6 | % | 3.42 | % | 6 | % | 3.07 | % | 6 | % | 2.46 | % | ||||||
| Illinois |
5 | % | 5.30 | % | 5 | % | 4.37 | % | 5 | % | 3.06 | % | ||||||
| Georgia |
4 | % | 6.72 | % | 4 | % | 5.88 | % | 4 | % | 4.00 | % | ||||||
| North Carolina |
4 | % | 4.31 | % | 4 | % | 3.89 | % | 4 | % | 3.38 | % | ||||||
| Pennsylvania |
4 | % | 5.05 | % | 4 | % | 4.56 | % | 4 | % | 3.90 | % | ||||||
| New Jersey |
4 | % | 5.95 | % | 3 | % | 4.95 | % | 3 | % | 3.28 | % | ||||||
| Arizona |
3 | % | 7.27 | % | 3 | % | 5.21 | % | 3 | % | 1.79 | % | ||||||
| (1) |
Alabama, Arkansas, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee |
| (2) |
Arizona, Colorado, Louisiana, New Mexico, Oklahoma, Texas and Utah |
| (3) |
New Jersey, New York and Pennsylvania |
| (4) |
Alaska, California, Hawaii, Nevada, Oregon and Washington |
| (5) |
Illinois, Minnesota, Missouri and Wisconsin |
| (6) |
Indiana, Kentucky, Michigan and Ohio |
| (7) |
Idaho, Iowa, Kansas, Montana, Nebraska, North Dakota, South Dakota and Wyoming |
| (8) |
Delaware, Maryland, Virginia, Washington D.C. and West Virginia |
| (9) |
Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont |
24
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Portfolio Quality Metrics—U.S. Mortgage Insurance
(amounts in millions)
| June 30, 2008 |
March 31, 2008 |
June 30, 2007 | |||||||
| Primary risk-in-force lender concentration (by original applicant) |
$ | 36,038 | $ | 33,753 | $ | 25,710 | |||
| Top 10 lenders |
17,232 | 15,004 | 9,910 | ||||||
| Top 20 lenders |
20,974 | 18,811 | 13,242 | ||||||
| Loan-to-value ratio |
|||||||||
| 95.01% and above |
$ | 9,417 | $ | 9,274 | $ | 6,786 | |||
| 90.01% to 95.00% |
12,097 | 11,045 | 8,329 | ||||||
| 80.01% to 90.00% |
13,494 | 12,177 | 9,422 | ||||||
| 80.00% and below |
1,030 | 1,257 | 1,173 | ||||||
| Total |
$ | 36,038 | $ | 33,753 | $ | 25,710 | |||
| Loan grade |
|||||||||
| Prime |
$ | 31,816 | $ | 29,503 | $ | 22,549 | |||
| A minus and sub-prime |
4,222 | 4,250 | 3,161 | ||||||
| Total |
$ | 36,038 | $ | 33,753 | $ | 25,710 | |||
| Loan type(1) |
|||||||||
| Fixed rate mortgage |
|||||||||
| Flow |
$ | 33,552 | $ | 31,248 | $ | 23,221 | |||
| Bulk |
752 | 735 | 640 | ||||||
| Adjustable rate mortgage |
|||||||||
| Flow |
1,115 | 1,151 | 1,221 | ||||||
| Bulk |
619 | 619 | 628 | ||||||
| Total |
$ | 36,038 | $ | 33,753 | $ | 25,710 | |||
| Type of documentation |
|||||||||
| Alt-A |
|||||||||
| Flow |
$ | 1,467 | $ | 1,526 | $ | 1,456 | |||
| Bulk |
337 | 337 | 267 | ||||||
| Standard(2) |
|||||||||
| Flow |
33,200 | 30,872 | 22,986 | ||||||
| Bulk |
1,034 | 1,018 | 1,001 | ||||||
| Total |
$ | 36,038 | $ | 33,753 | $ | 25,710 | |||
| Mortgage term |
|||||||||
| 15 years and under |
$ | 430 | $ | 377 | $ | 372 | |||
| More than 15 years |
35,608 | 33,376 | 25,338 | ||||||
| Total |
$ | 36,038 | $ | 33,753 | $ | 25,710 | |||
| (1) |
For loan type in this table, any loan with an interest rate that is fixed for an initial term of five years or more is categorized as a fixed rate mortgage. |
| (2) |
Standard includes loans with reduced or different documentation requirements that meet specifications of GSE approved underwriting systems with historical and expected delinquency rates consistent with our standard portfolio. |
25
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Portfolio Quality Metrics—U.S. Mortgage Insurance
(amounts in millions)
| As of June 30, 2008 | ||||||||||||||||
| Policy Year |
Average Rate | Primary Insurance In-force |
Percent of Total |
Primary Risk In-force |
Percent of Total |
|||||||||||
| 1997 and Prior |
8.13 | % | $ | 1,698 | 1.0 | % | $ | 422 | 1.2 | % | ||||||
| 1998 |
7.15 | % | 724 | 0.4 | 191 | 0.5 | ||||||||||
| 1999 |
7.31 | % | 875 | 0.5 | 221 | 0.6 | ||||||||||
| 2000 |
8.16 | % | 574 | 0.3 | 140 | 0.4 | ||||||||||
| 2001 |
7.41 | % | 1,954 | 1.1 | 494 | 1.4 | ||||||||||
| 2002 |
6.60 | % | 4,862 | 2.8 | 1,193 | 3.3 | ||||||||||
| 2003 |
5.64 | % | 19,315 | 11.0 | 3,229 | 9.0 | ||||||||||
| 2004 |
5.86 | % | 10,489 | 6.0 | 2,275 | 6.3 | ||||||||||
| 2005 |
5.97 | % | 15,752 | 9.0 | 3,901 | 10.8 | ||||||||||
| 2006 |
6.64 | % | 28,482 | 16.3 | 5,409 | 15.0 | ||||||||||
| 2007 |
6.76 | % | 61,158 | 35.0 | 11,410 | 31.7 | ||||||||||
| 2008 |
6.22 | % | 29,022 | 16.6 | 7,153 | 19.8 | ||||||||||
| Total portfolio |
$ | 174,905 | 100.0 | % | $ | 36,038 | 100.0 | % | ||||||||
| Occupancy and Property Type |
As of June 30, 2008 |
As of March 31, 2008 |
||||||||||||||
| Occupancy Status % of Primary Risk In-force |
||||||||||||||||
| Primary residence |
92.6 | % | 92.4 | % | ||||||||||||
| Second home |
4.2 | 4.2 | ||||||||||||||
| Non-owner occupied |
3.2 | 3.4 | ||||||||||||||
| Total |
100.0 | % | 100.0 | % | ||||||||||||
| Property Type % of Primary Risk In-force |
||||||||||||||||
| Single family detached |
85.5 | % | 85.5 | % | ||||||||||||
| Condominium |
11.0 | 10.8 | ||||||||||||||
| Multi-family and other |
3.5 | 3.7 | ||||||||||||||
| Total |
100.0 | % | 100.0 | % | ||||||||||||
26
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Portfolio Quality Metrics—U.S. Mortgage Insurance
(amounts in billions)
| FICO > 679 | FICO 620 - 679(1) | FICO < 620 | Total | |||||||||||||||||||||||||||||
| 2008 | 2008 | 2008 | 2008 | |||||||||||||||||||||||||||||
| Primary Risk In-force |
Q2 | Q1 | Q2 | Q1 | Q2 | Q1 | Q2 | Q1 | ||||||||||||||||||||||||
| Total Primary Risk In-force |
$ | 22.2 | $ | 20.2 | $ | 10.8 | $ | 10.5 | $ | 3.0 | $ | 3.0 | $ | 36.0 | $ | 33.8 | ||||||||||||||||
| Delinquency rate(2) |
3.3 | % | 2.6 | % | 8.1 | % | 6.8 | % | 15.4 | % | 12.7 | % | 5.6 | % | 4.7 | % | ||||||||||||||||
| 2008 policy year |
$ | 5.3 | $ | 2.6 | $ | 1.5 | $ | 0.9 | $ | 0.3 | $ | 0.2 | $ | 7.2 | $ | 3.7 | ||||||||||||||||
| Delinquency rate |
0.3 | % | 0.1 | % | 1.2 | % | 0.3 | % | 17.1 | % | 1.0 | % | 0.7 | % | 0.2 | % | ||||||||||||||||
| 2007 policy year |
$ | 6.6 | $ | 6.7 | $ | 3.6 | $ | 3.7 | $ | 1.2 | $ | 1.3 | $ | 11.4 | $ | 11.7 | ||||||||||||||||
| Delinquency rate |
4.4 | % | 2.9 | % | 7.5 | % | 5.2 | % | 17.1 | % | 12.3 | % | 6.6 | % | 4.5 | % | ||||||||||||||||
| 2006 policy year |
$ | 3.2 | $ | 3.3 | $ | 1.7 | $ | 1.8 | $ | 0.5 | $ | 0.5 | $ | 5.4 | $ | 5.6 | ||||||||||||||||
| Delinquency rate |
6.5 | % | 4.5 | % | 11.4 | % | 8.8 | % | 17.6 | % | 15.1 | % | 8.9 | % | 6.6 | % | ||||||||||||||||
| 2005 policy year |
$ | 2.3 | $ | 2.4 | $ | 1.3 | $ | 1.4 | $ | 0.3 | $ | 0.3 | $ | 3.9 | $ | 4.1 | ||||||||||||||||
| Delinquency rate |
4.1 | % | 3.2 | % | 9.5 | % | 8.1 | % | 15.1 | % | 13.2 | % | 6.7 | % | 5.5 | % | ||||||||||||||||
| 2004 & prior policy years |
$ | 4.9 | $ | 5.2 | $ | 2.6 | $ | 2.8 | $ | 0.6 | $ | 0.6 | $ | 8.2 | $ | 8.6 | ||||||||||||||||
| Delinquency rate |
2.2 | % | 1.9 | % | 8.6 | % | 8.2 | % | 15.1 | % | 14.0 | % | 4.9 | % | 4.5 | % | ||||||||||||||||
| Fixed rate mortgage |
$ | 21.1 | $ | 19.1 | $ | 10.3 | $ | 10.0 | $ | 2.9 | $ | 2.9 | $ | 34.3 | $ | 32.0 | ||||||||||||||||
| Delinquency rate |
2.6 | % | 2.0 | % | 7.6 | % | 6.4 | % | 15.0 | % | 12.3 | % | 5.0 | % | 4.2 | % | ||||||||||||||||
| Adjustable rate mortgage |
$ | 1.2 | $ | 1.2 | $ | 0.5 | $ | 0.5 | $ | 0.1 | $ | 0.1 | $ | 1.7 | $ | 1.8 | ||||||||||||||||
| Delinquency rate |
12.3 | % | 9.1 | % | 17.2 | % | 14.6 | % | 29.2 | % | 25.3 | % | 13.9 | % | 10.8 | % | ||||||||||||||||
| LTV > 95% |
$ | 4.7 | $ | 4.5 | $ | 3.5 | $ | 3.5 | $ | 1.2 | $ | 1.2 | $ | 9.4 | $ | 9.3 | ||||||||||||||||
| Delinquency rate |
2.8 | % | 2.2 | % | 8.9 | % | 7.1 | % | 18.7 | % | 15.2 | % | 7.2 | % | 5.9 | % | ||||||||||||||||
| Alt-A(3) |
$ | 1.2 | $ | 1.3 | $ | 0.5 | $ | 0.5 | $ | 0.1 | $ | 0.1 | $ | 1.8 | $ | 1.9 | ||||||||||||||||
| Delinquency rate |
10.1 | % | 6.7 | % | 17.8 | % | 13.9 | % | 26.1 | % | 20.9 | % | 12.2 | % | 8.6 | % | ||||||||||||||||
| Interest only & option ARMs |
$ | 3.0 | $ | 2.9 | $ | 1.0 | $ | 1.0 | $ | 0.2 | $ | 0.2 | $ | 4.1 | $ | 4.1 | ||||||||||||||||
| Delinquency rate |
10.6 | % | 7.3 | % | 16.2 | % | 12.0 | % | 25.3 | % | 19.7 | % | 12.0 | % | 8.5 | % | ||||||||||||||||
Amounts may not total due to rounding.
| (1) |
Loans with unknown FICO scores are included in the 620 - 679 category. |
| (2) |
Delinquency rate represents the number of lender reported delinquencies divided by the number of remaining policies consistent with mortgage insurance practices. |
| (3) |
Alt-A consists of loans with reduced documentation or verification of income or assets and a higher historical and expected delinquency rate than standard documentation loans. |
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GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Other Metrics—U.S. Mortgage Insurance Bulk Risk In-force
(dollar amounts in millions)
| June 30, 2008 |
March 31, 2008 |
December 31, 2007 |
||||||||||
| GSE Alt-A |
||||||||||||
| Risk in-force |
$ | 340 | $ | 340 | $ | 340 | ||||||
| Average FICO score |
718 | 718 | 719 | |||||||||
| Loan-to-value ratio |
79 | % | 79 | % | 79 | % | ||||||
| Standard documentation(1) |
22 | % | 28 | % | 28 | % | ||||||
| Stop loss |
100 | % | 100 | % | 100 | % | ||||||
| Deductible |
81 | % | 85 | % | 85 | % | ||||||
| Portfolio |
||||||||||||
| Risk in-force |
$ | 524 | $ | 527 | $ | 532 | ||||||
| Average FICO score |
723 | 723 | 724 | |||||||||
| Loan-to-value ratio |
76 | % | 76 | % | 76 | % | ||||||
| Standard documentation |
97 | % | 97 | % | 97 | % | ||||||
| Stop loss |
100 | % | 100 | % | 100 | % | ||||||
| Deductible |
22 | % | 27 | % | 27 | % | ||||||
| FHLB |
||||||||||||
| Risk in-force |
$ | 408 | $ | 385 | $ | 382 | ||||||
| Average FICO score |
744 | 743 | 743 | |||||||||
| Loan-to-value ratio |
69 | % | 68 | % | 68 | % | ||||||
| Standard documentation |
86 | % | 88 | % | 88 | % | ||||||
| Stop loss |
91 | % | 96 | % | 96 | % | ||||||
| Deductible |
100 | % | 100 | % | 100 | % | ||||||
| Other |
||||||||||||
| Risk in-force |
$ | 99 | $ | 103 | $ | 107 | ||||||
| Average FICO score |
717 | 717 | 727 | |||||||||
| Loan-to-value ratio |
93 | % | 93 | % | 94 | % | ||||||
| Standard documentation |
96 | % | 99 | % | 100 | % | ||||||
| Stop loss |
11 | % | 9 | % | 11 | % | ||||||
| Deductible |
— | % | — | % | — | % | ||||||
| Total Bulk Risk In-force |
$ | 1,371 | $ | 1,355 | $ | 1,361 | ||||||
| (1) |
Standard documentation includes loans with reduced or different documentation requirements that meet specifications of GSE approved underwriting systems with historical and expected delinquency rates consistent with our standard portfolio. |
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GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Aggregate Book Year Analysis Provided to Illustrate Directional Progression Toward Captive Attachment(1)
| Book Year(2) |
Original Book RIF ($B) |
Progression to Attachment Point |
June 30, 2008 | March 31, 2008 | December 31, 2007 | ||||||||||||||||||||||||||||||||
| Current RIF ($B) |
Ever to Date Incurred Losses ($MM) |
Captive Benefit ($MM) |
Current RIF ($B) |
Ever to Date Incurred Losses ($MM) |
Captive Benefit ($MM) |
Current RIF ($B) |
Ever to Date Incurred Losses ($MM) |
Captive Benefit ($MM) |
|||||||||||||||||||||||||||||
| 2005 |
0-50% |
$ | 0.4 | $ | 10 | $ | 0.5 | $ | 10 | $ | 0.8 | $ | 16 | ||||||||||||||||||||||||
| 2005 |
50-75% | 0.4 | 22 | 1.6 | 72 | 1.5 | 56 | ||||||||||||||||||||||||||||||
| 2005 |
75-99% | 1.1 | 72 | 0.2 | 11 | 0.4 | 15 | ||||||||||||||||||||||||||||||
| 2005 |
Attached | 0.6 | 44 | 0.3 | 20 | — | 2 | ||||||||||||||||||||||||||||||
| 2005 Total |
$ | 4.4 | $ | 2.5 | $ | 148 | $ | 6 | $ | 2.6 | $ | 113 | $ | 1 | $ | 2.7 | $ | 89 | $ | — | |||||||||||||||||
| 2006 |
0-50% | $ | 0.2 | $ | 2 | $ | 0.5 | $ | 11 | $ | 0.7 | $ | 10 | ||||||||||||||||||||||||
| 2006 |
50-75% | 0.4 | 17 | 0.3 | 8 | 1.8 | 55 | ||||||||||||||||||||||||||||||
| 2006 |
75-99% | 0.4 | 26 | 0.5 | 23 | 0.8 | 31 | ||||||||||||||||||||||||||||||
| 2006 |
Attached | 2.1 | 185 | 2.0 | 113 | 0.1 | 5 | ||||||||||||||||||||||||||||||
| 2006 Total |
$ | 4.2 | $ | 3.1 | $ | 230 | 61 | $ | 3.3 | $ | 155 | 17 | $ | 3.4 | $ | 101 | 1 | ||||||||||||||||||||
| 2007 |
0-50% | $ | 1.0 | $ | 17 | $ | 4.3 | $ | 77 | $ | 6.9 | $ | 56 | ||||||||||||||||||||||||
| 2007 |
50-75% | 1.0 | 33 | 1.0 | 23 | — | — | ||||||||||||||||||||||||||||||
| 2007 |
75-99% | 2.2 | 77 | 0.8 | 25 | — | — | ||||||||||||||||||||||||||||||
| 2007 |
Attached | 2.2 | 128 | 0.5 | 22 | — | — | ||||||||||||||||||||||||||||||
| 2007 Total |
$ | 6.9 | $ | 6.4 | $ | 255 | 43 | $ | 6.6 | $ | 147 | 1 | $ | 6.9 | $ | 56 | — | ||||||||||||||||||||
| Captive Benefit In Quarter ($MM) |
$ | 110 | $ | 19 | $ | 1 | |||||||||||||||||||||||||||||||
| (1) |
Data presented in aggregate for all trusts. Actual trust attachment and exit points will vary by individual lender contract. For purposes of this illustration, incurred losses equals change in reserves plus paid claims. The information presented excludes quota share captive reinsurance data. Progress toward captive attachment is determined at a lender level for each book year by dividing ever to date incurred losses by original RIF for that book year. |
| (2) |
Book year figures may include loans from additional periods pursuant to reinsurance agreement terms and conditions. |
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CORPORATE INFORMATION
30
GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Our principal life insurance subsidiaries are rated by A.M. Best, Standard and Poor’s (S&P), Moody’s and Fitch as follows:
| Company |
A.M. Best |
S&P |
Moody’s |
Fitch | ||||
| Genworth Life Insurance Company |
A+ | AA- | Aa3 | AA- | ||||
| Genworth Life Insurance Company (short-term rating) |
Not rated | A-1+ | P-1 | Not rated | ||||
| Genworth Life and Annuity Insurance Company |
A+ | AA- | Aa3 | AA- | ||||
| Genworth Life and Annuity Insurance Company (short-term rating) |
Not rated | A-1+ | P-1 | Not rated | ||||
| Genworth Life Insurance Company of New York |
A+ | AA- | Aa3 | AA- | ||||
| Continental Life Insurance Company of Brentwood, Tennessee |
A | Not rated | Not rated | Not rated | ||||
| American Continental Insurance Company |
A- | Not rated | Not rated | Not rated |
Our mortgage insurance subsidiaries are rated by S&P, Moody’s and Fitch as follows:
| Company |
S&P |
Moody’s |
Fitch | |||||
| Genworth Mortgage Insurance Corporation |
AA | Aa3 | AA | |||||
| Genworth Financial Mortgage Insurance Pty. Limited |
AA | Aa3 | AA | |||||
| Genworth Financial Mortgage Insurance Limited |
AA | Aa3 | AA | |||||
| Genworth Residential Mortgage Insurance Corporation of NC |
AA | Aa3 | AA | |||||
| Genworth Financial Assurance Corporation |
Not rated | Aa3 | AA | |||||
| Genworth Financial Mortgage Insurance Company Canada(1) |
AA | Not rated | Not rated | |||||
| Genworth Seguros de Credito a la Vivienda S.A. de C.V. |
mxAAA | Aaa.mx | AAA(mex) |
| (1) |
Genworth Financial Mortgage Insurance Company Canada is also rated “AA” by Dominion Bond Rating Service (DBRS). |
The A.M. Best, S&P, Moody’s and Fitch ratings are not designed to be, and do not serve as, measures of protection or valuation offered to investors. These financial strength ratings should not be relied on with respect to making an investment in our securities.
A.M. Best states that its “A+” (Superior) rating is assigned to those companies that have, in its opinion, a superior ability to meet their ongoing obligations to policyholders. The “A” and “A-” (Excellent) ratings are assigned to companies that have, in its opinion, an excellent ability to meet their ongoing insurance obligations. The “A+” (Superior), “A” and “A-” (Excellent) ratings are the second-, third- and fourth-highest of fifteen ratings assigned by A.M. Best, which range from “A++” to “F.”
S&P states that an insurer rated “AA” (Very Strong) has very strong financial security characteristics that outweigh any vulnerabilities, and is highly likely to have the ability to meet financial commitments. The “AA” range is the second-highest of the four ratings ranges that meet these criteria, and also is the second-highest of nine financial strength rating ranges assigned by S&P, which range from “AAA” to “R.” A plus (+) or minus (-) shows relative standing in a rating category. Accordingly, the “AA” and “AA-” ratings are the third- and fourth-highest of S&P’s 21 ratings categories. The short-term “A-1” rating is the highest rating and shows the capacity to meet financial commitments is strong. Within this category, the designation of a plus sign (+) indicates capacity to meet its financial commitments is extremely strong. An obligor rated “mxAAA” has a very strong capacity to meet its financial commitments relative to that of other Mexican obligors. The “mxAAA” rating is the highest enterprise credit rating assigned on S&P’s CaVal national scale.
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GENWORTH FINANCIAL, INC.
2Q 2008 STATISTICAL SUPPLEMENT
Industry Ratings (continued)
Moody’s states that insurance companies rated “Aa” (Excellent) offer excellent financial security. Moody’s states that companies in this group constitute what are generally known as high-grade companies. The “Aa” range is the second-highest of nine financial strength rating ranges assigned by Moody’s, which range from “Aaa” to “C.” Numeric modifiers are used to refer to the ranking within the group, with 1 being the highest and 3 being the lowest. Accordingly, the “Aa2” and “Aa3” ratings are the third- and fourth-highest of Moody’s 21 ratings categories. Short-term rating “P-1” is the highest rating and shows superior ability for repayment of short-term debt obligations. Issuers or issues rated “Aaa.mx” demonstrate the strongest creditworthiness relative to other issuers in Mexico.
Fitch states that “AA” (Very Strong) rated insurance companies are viewed as possessing very strong capacity to meet policyholder and contract obligations, risk factors are modest, and the impact of any adverse business and economic factors is expected to be very small. The “AA” rating category is the second-highest of eight financial strength rating categories, which range from “AAA” to “C.” The symbol (+) or (-) may be appended to a rating to indicate the relative position of a credit within a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “AA” and “AA-” ratings are the third- and fourth-highest of Fitch’s 21 ratings categories. The “AAA(mex)” rating denotes the highest rating assigned within the scale for Mexico. The rating is assigned to the policyholder obligations of the “best” insurance entities relative to all other issuers or issues in Mexico, across all industries and obligation types.
DBRS states that long-term debt rated “AA” is of superior credit quality, and protection of interest and principal is considered high. In many cases they differ from long-term debt rated “AAA” only to a small degree. Given the extremely restrictive definition DBRS has for the “AAA” category, entities rated “AA” are also considered to be strong credits, typically exemplifying above-average strength in key areas of consideration and unlikely to be significantly affected by reasonably foreseeable events.
A.M. Best, S&P, Moody’s, Fitch and DBRS review their ratings periodically and we cannot assure you that we will maintain our current ratings in the future. Other agencies may also rate our company or our insurance subsidiaries on a solicited or an unsolicited basis.
About Genworth Financial
Genworth is a leading financial security company meeting the retirement, longevity and lifestyle protection, investment and mortgage insurance needs of more than 15 million customers, with a presence in more than 25 countries. For more information, visit www.genworth.com.
Inquiries:
Alicia Charity, 804-662-2248
Alicia.Charity@genworth.com
Kelly Groh, 804-281-6321
Kelly.Groh@genworth.com
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