Exhibit 12
Genworth Financial, Inc.
Statement of Ratio of Income to Fixed Charges
(Dollar amounts in millions)
| Nine months ended September 30, 2009 |
Years ended December 31, | |||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
| Income (loss) from continuing operations before income taxes and accounting changes |
$ | (894 | ) | $ | (942 | ) | $ | 1,606 | $ | 1,853 | $ | 1,745 | $ | 1,584 | ||||||
| Less: income attributable to noncontrolling interests before income taxes |
40 | — | — | — | — | — | ||||||||||||||
| Income (loss) from continuing operations before income taxes and accounting changes and excluding income attributable to noncontrolling interests |
$ | (934 | ) | $ | (942 | ) | $ | 1,606 | $ | 1,853 | $ | 1,745 | $ | 1,584 | ||||||
| Fixed charges included in income (loss) from continuing operations: |
||||||||||||||||||||
| Interest expense |
$ | 306 | $ | 470 | $ | 481 | $ | 364 | $ | 293 | $ | 217 | ||||||||
| Interest portion of rental expense |
10 | 18 | 15 | 15 | 13 | 14 | ||||||||||||||
| Subtotal |
316 | 488 | 496 | 379 | 306 | 231 | ||||||||||||||
| Interest credited to investment contractholders |
763 | 1,293 | 1,552 | 1,520 | 1,423 | 1,431 | ||||||||||||||
| Total fixed charges from continuing operations |
1,079 | 1,781 | 2,048 | 1,899 | 1,729 | 1,662 | ||||||||||||||
| Fixed charges included in income from discontinued operations: |
||||||||||||||||||||
| Interest expense |
— | — | — | — | — | — | ||||||||||||||
| Interest portion of rental expense |
— | — | — | — | — | — | ||||||||||||||
| Subtotal |
— | — | — | — | — | — | ||||||||||||||
| Interest credited to investment contractholders |
— | — | 1 | 2 | 2 | 1 | ||||||||||||||
| Total fixed charges from discontinued operations |
— | — | 1 | 2 | 2 | 1 | ||||||||||||||
| Total fixed charges |
$ | 1,079 | $ | 1,781 | $ | 2,049 | $ | 1,901 | $ | 1,731 | $ | 1,663 | ||||||||
| Income (loss) available for fixed charges (including interest credited to investment contractholders) |
$ | 145 | $ | 839 | $ | 3,655 | $ | 3,754 | $ | 3,476 | $ | 3,247 | ||||||||
| Ratio of income (loss) to fixed charges (including interest credited to investment contractholders) |
0.13 | 0.47 | 1.78 | 1.97 | 2.01 | 1.95 | ||||||||||||||
| Income (loss) available for fixed charges (excluding interest credited to investment contractholders) |
$ | (618 | ) | $ | (454 | ) | $ | 2,102 | $ | 2,232 | $ | 2,051 | $ | 1,815 | ||||||
| Ratio of income (loss) to fixed charges (excluding interest credited to investment contractholders) |
(1.96 | ) | (0.93 | ) | 4.24 | 5.89 | 6.70 | 7.86 | ||||||||||||
For the nine months ended September 30, 2009, additional income required to achieve a 1:1 ratio coverage was $934 million.
For the year ended December 31, 2008, additional income required to achieve a 1:1 ratio coverage was $942 million.