EX-99.2

Exhibit 99.2

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016


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

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

*Quarterly Results by Business*
Adjusted Operating Income and Sales—U.S. Mortgage Insurance Segment		16-22
Adjusted Operating Income and Sales—Canada Mortgage Insurance Segment		24-27
Adjusted Operating Income and Sales—Australia Mortgage Insurance Segment		29-32
Adjusted Operating Income (Loss) and Sales—U.S. Life Insurance Segment		34-37
Adjusted Operating Income (Loss)—Runoff Segment		39
Adjusted Operating Loss—Corporate and Other Activities		41

*Additional Financial Data*
Investments Summary		43
Fixed Maturity Securities Summary		44
General Account GAAP Net Investment Income Yields		45
Net Investment Gains (Losses), Net—Detail		46

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		48
Reconciliation of Core Yield		49

*Corporate Information*
Financial Strength Ratings		51

Note:

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Dear Investor,

Thank you for your continued interest in Genworth Financial.

Regards,

Investor Relations

InvestorInfo@genworth.com

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

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

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

Adjustments to reconcile net income (loss) attributable to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) assume a 35% tax rate (unless otherwise indicated) and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves (see page 46).

In June 2016, the company completed the sale of its term life insurance new business platform and recorded a pre-tax gain of $12 million. In May 2016, the company completed the sale of its mortgage insurance business in Europe and recorded an additional pre-tax loss of $2 million. In the first quarter of 2016, the company recorded an estimated pre-tax loss of $7 million and a tax benefit of $27 million related to the planned sale of the mortgage insurance business in Europe. The company also recognized an estimated pre-tax loss of $140 million in the fourth quarter of 2015 for the planned sale of this business. The company also incurred a $6 million tax benefit in the fourth quarter of 2015 related to the planned sale as well as a tax charge of $7 million in the third quarter of 2015 from potential business portfolio changes related to this business. These transactions were excluded from adjusted operating income (loss) for the periods presented as they related to a gain (loss) on the sale of businesses.

In June 2016, the company settled restricted borrowings of $70 million related to a securitization entity and recorded a $64 million pre-tax gain related to the early extinguishment of debt. In January 2016, the company paid a pre-tax make-whole expense of $20 million related to the early redemption of Genworth Holdings, Inc.’s (Genworth Holdings) 2016 notes. The company also repurchased $28 million principal amount of Genworth Holdings’ notes with various maturity dates for a pre-tax gain of $4 million in the first quarter of 2016. In the third quarter of 2015, the company paid an early redemption payment of approximately $1 million, net of the portion attributable to noncontrolling interests, related to the early redemption of Genworth Financial Mortgage Insurance Pty Limited’s notes that were scheduled to mature in 2021. In the third quarter of 2015, the company also repurchased approximately $50 million principal amount of Genworth Holdings’ notes with various maturity dates for a pre-tax loss of $1 million. These transactions were excluded from adjusted operating income (loss) for the periods presented as they related to a gain (loss) on the early extinguishment of debt.

In the first quarter of 2016, the company completed a life block transaction resulting in a pre-tax loss of $9 million in connection with the early extinguishment of non-recourse funding obligations. In the third quarter of 2015, the company recorded a pre-tax DAC impairment of $455 million on certain term life insurance policies in connection with entering into an agreement to complete a life block transaction.

In the third, second and first quarters of 2016, the company recorded a pre-tax expense of $2 million, $5 million and $15 million, respectively, related to restructuring costs as part of an expense reduction plan as the company evaluates and appropriately sizes its organizational needs and expenses. In the fourth and second quarters of 2015, the company also recorded a pre-tax expense of $5 million and $3 million, respectively, related to restructuring costs.

There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented other than fees incurred during the first quarter of 2016 related to Genworth Holdings’ bond consent solicitation of $18 million for broker, advisor and investment banking fees.

The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. The financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 48 and 49 of this financial supplement.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Results of Operations and Selected Operating Performance Measures

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

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

Management regularly monitors and reports sales metrics as a measure of volume of new and renewal business generated in a period. Sales refer to: (1) new insurance written for mortgage insurance; (2) annualized first-year premiums for long-term care and term life insurance products; (3) annualized first-year deposits plus 5% of excess deposits for universal and term universal life insurance products; (4) 10% of premium deposits for linked-benefits products; and (5) new and additional premiums/deposits for fixed annuities. Sales do not include renewal premiums on policies or contracts written during prior periods. The company considers new insurance written, annualized first-year premiums/deposits, premium equivalents and new premiums/deposits to be a measure of the company’s operating performance because they represent a measure of new sales of insurance policies or contracts during a specified period, rather than a measure of the company’s revenues or profitability during that period.

Management regularly monitors and reports insurance in-force and risk in-force. Insurance in-force for the mortgage insurance businesses is a measure of the aggregate original loan balance for outstanding insurance policies as of the respective reporting date. Risk in-force for the U.S. mortgage insurance business is based on the coverage percentage applied to the estimated current outstanding loan balance. For risk in-force in the mortgage insurance businesses in Canada and Australia, the company has computed an “effective” risk in-force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor of 35% that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s mortgage insurance businesses in Canada and Australia. In Australia, the company has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. The company considers insurance in-force and risk in-force to be measures of the company’s operating performance because they represent measures of the size of the business at a specific date which will generate revenues and profits in a future period, rather than measures of the company’s revenues or profitability during that period.

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	December 31, 2016			September 30, 2016		June 30, 2016		March 31, 2016			December 31, 2015
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	9,550		$	9,669	$	10,045	$	9,870		$	9,814
Total accumulated other comprehensive income		3,094			5,202		5,088		4,185			3,010

Total Genworth Financial, Inc.’s stockholders’ equity	$	12,644		$	14,871	$	15,133	$	14,055		$	12,824

Book value per common share	$	25.37		$	29.84	$	30.37	$	28.19		$	25.76
Book value per common share, excluding accumulated other comprehensive income	$	19.16		$	19.40	$	20.16	$	19.80		$	19.71
Common shares outstanding as of the balance sheet date		498.4			498.4		498.3		498.5			497.8

	Twelve months ended
Twelve Month Rolling Average ROE	December 31, 2016			September 30, 2016		June 30, 2016		March 31, 2016			December 31, 2015
GAAP Basis ROE		-2.8	%		-4.5%		-3.5%		-7.0	%		-6.0	%
Operating ROE⁽¹⁾		-3.2	%		-2.6%		2.1%		2.0	%		2.5	%

	Three months ended
Quarterly Average ROE	December 31, 2016			September 30, 2016		June 30, 2016		March 31, 2016			December 31, 2015
GAAP Basis ROE		-5.1	%		-15.4%		6.9%		2.2	%		-11.7	%
Operating ROE⁽¹⁾		-5.7	%		-16.4%		4.9%		4.2	%		-3.3	%


Basic and Diluted Shares	Three months ended December 31, 2016		Twelve months ended December 31, 2016
Weighted-average common shares used in basic earnings per common share calculations		498.4		498.3
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights⁽²⁾		—		—

Weighted-average common shares used in diluted earnings per common share calculations		498.4		498.3

⁽¹⁾	See page 48 herein for a reconciliation of GAAP Basis ROE to Operating ROE.

⁽²⁾

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three and twelve months ended December 31, 2016, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three and twelve months ended December 31, 2016, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.5 million and 2.0 million, respectively, would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three and twelve months ended December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.9 million and 500.3 million, respectively.

Consolidated Quarterly Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	1,131		$	1,108		$	1,127		$	794		$	4,160		$	1,157		$	1,145		$	1,134		$	1,143		$	4,579
Net investment income		786			805			779			789			3,159			781			783			793			781			3,138
Net investment gains (losses)		41			20			30			(19	)		72			(16	)		(51	)		8			(16	)		(75	)
Policy fees and other income		240			217			300			221			978			234			223			222			227			906

Total revenues		2,198			2,150			2,236			1,785			8,369			2,156			2,100			2,157			2,135			8,548

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,530			1,662			1,193			860			5,245			1,435			1,290			1,232			1,192			5,149
Interest credited		173			173			173			177			696			180			179			181			180			720
Acquisition and operating expenses, net of deferrals		283			269			327			394			1,273			433			314			295			267			1,309
Amortization of deferred acquisition costs and intangibles		193			94			112			99			498			207			563			101			95			966
Interest expense		75			77			80			105			337			104			105			103			107			419

Total benefits and expenses		2,254			2,275			1,885			1,635			8,049			2,359			2,451			1,912			1,841			8,563

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(56	)		(125	)		351			150			320			(203	)		(351	)		245			294			(15	)
Provision (benefit) for income taxes		3			222			110			23			358			(36	)		(134	)		70			91			(9	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(59	)		(347	)		241			127			(38	)		(167	)		(217	)		175			203			(6	)
Income (loss) from discontinued operations, net of taxes⁽¹⁾		(4	)		15			(21	)		(19	)		(29	)		(73	)		(21	)		(314	)		1			(407	)

NET INCOME (LOSS)		(63	)		(332	)		220			108			(67	)		(240	)		(238	)		(139	)		204			(413	)
Less: net income attributable to noncontrolling interests		59			48			48			55			210			52			46			54			50			202

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		$ (122	)	$	(380	)	$	172		$	53		$	(277	)	$	(292	)	$	(284	)	$	(193	)	$	154		$	(615	)


Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(0.24	)	$	(0.79	)	$	0.39		$	0.14		$	(0.50	)	$	(0.44	)	$	(0.53	)	$	0.24		$	0.31		$	(0.42	)
Diluted	$	(0.24	)	$	(0.79	)	$	0.39		$	0.14		$	(0.50	)	$	(0.44	)	$	(0.53	)	$	0.24		$	0.31		$	(0.42	)
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(0.25	)	$	(0.76	)	$	0.35		$	0.11		$	(0.56	)	$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)
Diluted	$	(0.25	)	$	(0.76	)	$	0.34		$	0.11		$	(0.56	)	$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)
Weighted-average common shares outstanding
Basic		498.4			498.3			498.5			498.0			498.3			497.6			497.4			497.4			497.0			497.4
Diluted⁽²⁾		498.4			498.3			500.4			499.4			498.3			497.6			497.4			499.3			498.9			497.4

⁽¹⁾

Income (loss) from discontinued operations related to the lifestyle protection business that was sold on December 1, 2015. During the fourth, third, second and first quarters of 2016, the company recorded an additional after-tax gain (loss) of approximately $(4) million, $15 million, $(21) million and $(19) million, respectively, as it finalized the closing balance sheet purchase price adjustments.

⁽²⁾

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations, 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 stock options, restricted stock units and stock appreciation rights of 2.5 million, 2.2 million, 1.4 million and 1.3 million, respectively, for the three months ended December 31, 2016, September 30, 2016, December 31, 2015 and September 30, 2015 and 2.0 million and 1.6 million, respectively, for the twelve months ended December 31, 2016 and December 31, 2015 would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations in these periods, dilutive potential weighted-average common shares outstanding would have been 500.9 million, 500.5 million, 499.0 million and 498.7 million, respectively, for the three months ended December 31, 2016, September 30, 2016, December 31, 2015 and September 30, 2015 and 500.3 million and 499.0 million, respectively, for the twelve months ended December 31, 2016 and December 31, 2015.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

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

(amounts in millions, except per share amounts)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	(122	)	$	(380	)	$	172		$	53		$	(277	)	$	(292	)	$	(284	)	$	(193	)	$	154		$	(615	)
Add: net income attributable to noncontrolling interests		59			48			48			55			210			52			46			54			50			202

NET INCOME (LOSS)		(63	)		(332	)		220			108			(67	)		(240	)		(238	)		(139	)		204			(413	)
Income (loss) from discontinued operations, net of taxes		(4	)		15			(21	)		(19	)		(29	)		(73	)		(21	)		(314	)		1			(407	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(59	)		(347	)		241			127			(38	)		(167	)		(217	)		175			203			(6	)
Less: income from continuing operations attributable to noncontrolling interests		59			48			48			55			210			52			46			54			50			202

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(118	)		(395	)		193			72			(248	)		(219	)		(263	)		121			153			(208	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net⁽¹⁾		(28	)		(18	)		(39	)		19			(66	)		1			33			(5	)		1			30
(Gains) losses on sale of businesses		—			—			(10	)		7			(3	)		140			—			—			—			140
(Gains) losses on early extinguishment of debt, net⁽²⁾		—			—			(64	)		16			(48	)		—			2			—			—			2
Losses from life block transactions		—			—			—			9			9			—			455			—			—			455
Expenses related to restructuring		—			2			5			15			22			5			—			3			—			8
Fees associated with bond consent solicitation		—			—			—			18			18			—			—			—			—			—
Taxes on adjustments		9			6			38			(53	)		—			(9	)		(163	)		—			—			(172	)

ADJUSTED OPERATING INCOME (LOSS)	$	(137	)	$	(405	)	$	123		$	103		$	(316	)	$	(82	)	$	64		$	119		$	154		$	255

ADJUSTED OPERATING INCOME (LOSS):
U.S. Mortgage Insurance segment	$	61		$	67		$	61		$	61		$	250		$	41		$	37		$	49		$	52		$	179
Canada Mortgage Insurance segment		39			36			38			33			146			37			38			37			40			152
Australia Mortgage Insurance segment		14			14			15			19			62			22			21			29			30			102
U.S. Life Insurance segment:
Long-Term Care Insurance		(1	)		(270	)		37			34			(200	)		19			(10	)		10			10			29
Life Insurance		(193	)		48			31			31			(83	)		(173	)		31			22			40			(80	)
Fixed Annuities		40			15			(13	)		26			68			19			19			25			31			94

Total U.S. Life Insurance segment		(154	)		(207	)		55			91			(215	)		(135	)		40			57			81			43

Runoff segment		6			12			6			4			28			11			(4	)		9			11			27
Corporate and Other		(103	)		(327	)		(52	)		(105	)		(587	)		(58	)		(68	)		(62	)		(60	)		(248	)

ADJUSTED OPERATING INCOME (LOSS)	$	(137	)	$	(405	)	$	123		$	103		$	(316	)	$	(82	)	$	64		$	119		$	154		$	255


Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(0.25	)	$	(0.76	)	$	0.35		$	0.11		$	(0.56	)	$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)
Diluted	$	(0.25	)	$	(0.76	)	$	0.34		$	0.11		$	(0.56	)	$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)
Adjusted operating income (loss) per common share
Basic	$	(0.27	)	$	(0.81	)	$	0.25		$	0.21		$	(0.63	)	$	(0.17	)	$	0.13		$	0.24		$	0.31		$	0.51
Diluted	$	(0.27	)	$	(0.81	)	$	0.25		$	0.21		$	(0.63	)	$	(0.17	)	$	0.13		$	0.24		$	0.31		$	0.51
Weighted-average common shares outstanding
Basic		498.4			498.3			498.5			498.0			498.3			497.6			497.4			497.4			497.0			497.4
Diluted⁽³⁾		498.4			498.3			500.4			499.4			498.3			497.6			497.4			499.3			498.9			497.4

⁽¹⁾	Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests and DAC and other intangible amortization and certain benefit reserves (see page 46 for reconciliation).

⁽²⁾	For the three months ended September 30, 2015, losses on early extinguishment of debt were adjusted by $1 million related to the mortgage insurance business in Australia for the portion attributable to noncontrolling interests.

⁽³⁾

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations, 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 stock options, restricted stock units and stock appreciation rights of 2.5 million, 2.2 million, 1.4 million and 1.3 million, respectively, for the three months ended December 31, 2016, September 30, 2016, December 31, 2015 and September 30, 2015 and 2.0 million and 1.6 million, respectively, for the twelve months ended December 31, 2016 and December 31, 2015 would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations in these periods, dilutive potential weighted-average common shares outstanding would have been 500.9 million, 500.5 million, 499.0 million and 498.7 million, respectively, for the three months ended December 31, 2016, September 30, 2016, December 31, 2015 and September 30, 2015 and 500.3 million and 499.0 million, respectively, for the twelve months ended December 31, 2016 and December 31, 2015. Since it had adjusted operating income for the three months ended September 30, 2015 and the twelve months ended December 31, 2015, the company used 498.7 million and 499.0 million, respectively, diluted weighted-average common shares outstanding in the calculation of diluted adjusted operating income per common share.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Consolidated Balance Sheets

(amounts in millions)


	December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	60,572	$	63,780	$	62,828	$	60,290	$	58,197
Equity securities available-for-sale, at fair value		632		590		481		431		310
Commercial mortgage loans		6,111		6,017		6,121		6,179		6,170
Restricted commercial mortgage loans related to securitization entities		129		134		141		155		161
Policy loans		1,742		1,751		1,754		1,565		1,568
Other invested assets		2,071		2,676		2,510		2,923		2,309
Restricted other invested assets related to securitization entities		312		312		312		422		413

Total investments		71,569		75,260		74,147		71,965		69,128
Cash and cash equivalents		2,784		3,078		3,457		4,043		5,965
Accrued investment income		659		677		601		720		653
Deferred acquisition costs		3,571		3,982		4,046		4,235		4,398
Intangible assets and goodwill		348		258		267		291		357
Reinsurance recoverable		17,755		17,542		17,564		17,587		17,245
Other assets		673		570		640		577		520
Deferred tax asset		—		—		—		—		155
Separate account assets		7,299		7,485		7,484		7,624		7,883
Assets held for sale⁽¹⁾		—		—		—		131		127

Total assets	$	104,658	$	108,852	$	108,206	$	107,173	$	106,431

⁽¹⁾	Assets held for sale related to the European mortgage insurance business (prior to its sale on May 9, 2016).

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Consolidated Balance Sheets

(amounts in millions)


	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	37,063		$	37,405		$	37,154		$	36,776		$	36,475
Policyholder account balances		25,662			25,867			26,182			26,354			26,209
Liability for policy and contract claims		9,256			8,869			8,289			8,177			8,095
Unearned premiums		3,378			3,464			3,412			3,378			3,308
Other liabilities		2,916			3,280			3,197			3,596			3,004
Borrowings related to securitization entities		74			78			85			173			179
Non-recourse funding obligations		310			310			310			310			1,920
Long-term borrowings		4,180			4,194			4,191			4,232			4,570
Deferred tax liability		53			1,151			893			449			24
Separate account liabilities		7,299			7,485			7,484			7,624			7,883
Liabilities held for sale⁽¹⁾		—			—			—			131			127

Total liabilities		90,191			92,103			91,197			91,200			91,794

Equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,962			11,959			11,955			11,952			11,949

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		1,253			2,836			2,770			2,043			1,236
Net unrealized gains (losses) on other-than-temporarily impaired securities		9			24			19			14			18

Net unrealized investment gains (losses)		1,262			2,860			2,789			2,057			1,254

Derivatives qualifying as hedges		2,085			2,493			2,439			2,302			2,045
Foreign currency translation and other adjustments		(253	)		(151	)		(140	)		(174	)		(289	)

Total accumulated other comprehensive income		3,094			5,202			5,088			4,185			3,010
Retained earnings		287			409			789			617			564
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		12,644			14,871			15,133			14,055			12,824
Noncontrolling interests		1,823			1,878			1,876			1,918			1,813

Total equity		14,467			16,749			17,009			15,973			14,637

Total liabilities and equity	$	104,658		$	108,852		$	108,206		$	107,173		$	106,431

⁽¹⁾	Liabilities held for sale related to the European mortgage insurance business (prior to its sale on May 9, 2016).

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Consolidated Balance Sheet by Segment

(amounts in millions)


	December 31, 2016
	U.S. Mortgage Insurance			Canada Mortgage Insurance			Australia Mortgage Insurance		U.S. Life Insurance		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	2,587		$	4,686		$	2,562	$	61,251	$	2,961		$	965		$	75,012
Deferred acquisition costs and intangible assets		44			137			45		3,430		255			8			3,919
Reinsurance recoverable		2			—			—		16,907		846			—			17,755
Other assets		41			61			12		345		(9	)		223			673
Separate account assets		—			—			—		—		7,299			—			7,299

Total assets	$	2,674		$	4,884		$	2,619	$	81,933	$	11,352		$	1,196		$	104,658

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—		$	—		$	—	$	37,060	$	3		$	—		$	37,063
Policyholder account balances		—			—			—		22,285		3,377			—			25,662
Liability for policy and contract claims		635			112			211		8,276		15			7			9,256
Unearned premiums		342			1,595			850		586		5			—			3,378
Non-recourse funding obligations		—			—			—		310		—			—			310
Deferred tax and other liabilities		(373	)		137			95		2,436		(30	)		704			2,969
Borrowings and capital securities		—			322			142		—		12			3,778			4,254
Separate account liabilities		—			—			—		—		7,299			—			7,299

Total liabilities		604			2,166			1,298		70,953		10,681			4,489			90,191

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		2,065			1,751			575		7,712		670			(3,223	)		9,550
Allocated accumulated other comprehensive income (loss)		5			(186	)		76		3,268		1			(70	)		3,094

Total Genworth Financial, Inc.’s stockholders’ equity		2,070			1,565			651		10,980		671			(3,293	)		12,644
Noncontrolling interests		—			1,153			670		—		—			—			1,823

Total equity		2,070			2,718			1,321		10,980		671			(3,293	)		14,467

Total liabilities and equity	$	2,674		$	4,884		$	2,619	$	81,933	$	11,352		$	1,196		$	104,658

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Consolidated Balance Sheet by Segment

(amounts in millions)


	September 30, 2016
	U.S. Mortgage Insurance			Canada Mortgage Insurance			Australia Mortgage Insurance		U.S. Life Insurance		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	2,582		$	4,796		$	2,731	$	64,157	$	3,003		$	1,746		$	79,015
Deferred acquisition costs and intangible assets		43			140			50		3,746		253			8			4,240
Reinsurance recoverable		2			—			—		16,736		804			—			17,542
Other assets		40			47			13		377		(42	)		135			570
Separate account assets		—			—			—		—		7,485			—			7,485

Total assets	$	2,667		$	4,983		$	2,794	$	85,016	$	11,503		$	1,889		$	108,852

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—		$	—		$	—	$	37,402	$	3		$	—		$	37,405
Policyholder account balances		—			—			—		22,436		3,431			—			25,867
Liability for policy and contract claims		658			112			215		7,861		16			7			8,869
Unearned premiums		329			1,628			922		579		6			—			3,464
Non-recourse funding obligations		—			—			—		310		—			—			310
Deferred tax and other liabilities		(409	)		140			114		3,531		(65	)		1,120			4,431
Borrowings and capital securities		—			330			150		—		11			3,781			4,272
Separate account liabilities		—			—			—		—		7,485			—			7,485

Total liabilities		578			2,210			1,401		72,119		10,887			4,908			92,103

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		2,049			1,716			544		7,713		612			(2,965	)		9,669
Allocated accumulated other comprehensive income (loss)		40			(115	)		143		5,184		4			(54	)		5,202

Total Genworth Financial, Inc.’s stockholders’ equity		2,089			1,601			687		12,897		616			(3,019	)		14,871
Noncontrolling interests		—			1,172			706		—		—			—			1,878

Total equity		2,089			2,773			1,393		12,897		616			(3,019	)		16,749

Total liabilities and equity	$	2,667		$	4,983		$	2,794	$	85,016	$	11,503		$	1,889		$	108,852

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Deferred Acquisition Costs Rollforward

(amounts in millions)


	U.S. Mortgage Insurance			Canada Mortgage Insurance			Australia Mortgage Insurance			U.S. Life Insurance⁽¹⁾			Runoff⁽²⁾			Corporate and Other		Total
Unamortized balance as of September 30, 2016	$	27		$	123		$	34		$	4,011		$	249		$	—	$	4,444
Costs deferred		3			11			2			10			—			—		26
Amortization, net of interest accretion		(2	)		(10	)		(3	)		(205	)		(4	)		—		(224	)
Impact of foreign currency translation		—			(3	)		(2	)		—			—			—		(5	)

Unamortized balance as of December 31, 2016		28			121			31			3,816			245			—		4,241
Effect of accumulated net unrealized investment (gains) losses		—			—			—			(667	)		(3	)		—		(670	)

Balance as of December 31, 2016	$	28		$	121		$	31		$	3,149		$	242		$	—	$	3,571

⁽¹⁾	Amortization, net of interest accretion, included $5 million of amortization related to net investment losses for the policyholder account balances.

⁽²⁾	Amortization, net of interest accretion, included $4 million of amortization related to net investment gains for the policyholder account balances.

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Adjusted Operating Income and Sales—U.S. Mortgage Insurance Segment

(amounts in millions)


	2016												2015
	4Q		3Q		2Q		1Q			Total			4Q		3Q			2Q		1Q		Total
REVENUES:
Premiums	$	171	$	169	$	160	$	160		$	660		$	153	$	146		$	153	$	150	$	602
Net investment income		17		16		15		15			63			14		12			13		19		58
Net investment gains (losses)		—		—		—		(1	)		(1	)		—		1			—		—		1
Policy fees and other income		1		1		1		1			4			1		2			—		1		4

Total revenues		189		186		176		175			726			168		161			166		170		665

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		48		36		38		38			160			59		63			50		50		222
Acquisition and operating expenses, net of deferrals		42		45		41		39			167			42		38			38		37		155
Amortization of deferred acquisition costs and intangibles		4		3		2		3			12			3		3			2		2		10

Total benefits and expenses		94		84		81		80			339			104		104			90		89		387

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		95		102		95		95			387			64		57			76		81		278
Provision for income taxes		34		36		34		34			138			23		20			27		29		99

INCOME FROM CONTINUING OPERATIONS		61		66		61		61			249			41		37			49		52		179
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses		—		—		—		1			1			—		(1	)		—		—		(1	)
Expenses related to restructuring		—		1		—		—			1			—		—			—		—		—
Taxes on adjustments		—		—		—		(1	)		(1	)		—		1			—		—		1

ADJUSTED OPERATING INCOME	$	61	$	67	$	61	$	61		$	250		$	41	$	37		$	49	$	52	$	179



SALES:
New Insurance Written (NIW)
Flow	$	11,100	$	12,800	$	11,400	$	7,400		$	42,700		$	7,800	$	9,300		$	8,200	$	6,300	$	31,600
Bulk		—		—		—		—			—			—		—			—		—		—

Total U.S. Mortgage Insurance NIW	$	11,100	$	12,800	$	11,400	$	7,400		$	42,700		$	7,800	$	9,300		$	8,200	$	6,300	$	31,600

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

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

(amounts in millions)


	2016																				2015
	4Q					3Q					2Q					1Q					4Q					3Q					2Q					1Q
	Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)
Product
Monthly⁽¹⁾	$	8,800		53		$	10,000		54		$	8,400		55		$	5,400		59		$	5,900		60		$	7,000		60		$	6,500		60		$	4,400		60
Single		2,300		162			2,800		167			3,000		161			2,000		164			1,900		168			2,300		171			1,700		172			1,900		160

Total Flow	$	11,100				$	12,800				$	11,400				$	7,400				$	7,800				$	9,300				$	8,200				$	6,300


	Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW
FICO Scores
Over 735	$	7,000		63	%	$	8,100		63	%	$	7,100		62	%	$	4,400		60	%	$	4,600		59	%	$	5,500		59	%	$	5,000		61	%	$	3,700		59	%
680-735		3,300		30			3,800		30			3,400		30			2,400		32			2,500		32			3,000		32			2,500		30			2,100		33
660-679⁽²⁾		500		4			500		4			500		4			300		4			400		5			500		6			400		5			300		5
620-659		300		3			400		3			400		4			300		4			300		4			300		3			300		4			200		3
<620		—		—			—		—			—		—			—		—			—		—			—		—			—		—			—		—

Total Flow	$	11,100		100	%	$	12,800		100	%	$	11,400		100	%	$	7,400		100	%	$	7,800		100	%	$	9,300		100	%	$	8,200		100	%	$	6,300		100	%

Loan-To-Value Ratio
95.01% and above	$	1,000		9	%	$	1,000		8	%	$	700		6	%	$	400		5	%	$	400		5	%	$	500		5	%	$	400		5	%	$	300		5	%
90.01% to 95.00%		5,000		45			6,100		48			5,900		52			3,700		50			4,000		51			4,900		53			4,200		51			3,100		49
85.01% to 90.00%		3,400		31			4,000		31			3,400		30			2,400		33			2,500		32			3,000		32			2,600		32			2,000		32
85.00% and below		1,700		15			1,700		13			1,400		12			900		12			900		12			900		10			1,000		12			900		14

Total Flow	$	11,100		100	%	$	12,800		100	%	$	11,400		100	%	$	7,400		100	%	$	7,800		100	%	$	9,300		100	%	$	8,200		100	%	$	6,300		100	%

Origination
Purchase	$	8,400		76	%	$	10,500		82	%	$	9,400		82	%	$	6,000		81	%	$	6,500		83	%	$	8,100		87	%	$	6,500		79	%	$	4,300		68	%
Refinance		2,700		24			2,300		18			2,000		18			1,400		19			1,300		17			1,200		13			1,700		21			2,000		32

Total Flow	$	11,100		100	%	$	12,800		100	%	$	11,400		100	%	$	7,400		100	%	$	7,800		100	%	$	9,300		100	%	$	8,200		100	%	$	6,300		100	%

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	185		$	193		$	190		$	176		$	744		$	171		$	171		$	170		$	170		$	682

New Risk Written
Flow	$	2,673		$	3,188		$	2,865		$	1,845		$	10,571		$	1,964		$	2,364		$	2,040		$	1,557		$	7,925
Bulk		—			—			—			—			—			—			—			—			—			—

Total Primary		2,673			3,188			2,865			1,845			10,571			1,964			2,364			2,040			1,557			7,925
Pool		—			—			—			—			—			—			—			—			—			—

Total New Risk Written	$	2,673		$	3,188		$	2,865		$	1,845		$	10,571		$	1,964		$	2,364		$	2,040		$	1,557		$	7,925


Primary Insurance In-Force⁽¹⁾	$	137,500		$	133,700		$	128,400		$	124,100					$	122,400		$	120,400		$	117,100		$	115,200

Risk In-Force
Flow⁽²⁾	$	32,891		$	32,067		$	30,760		$	29,620					$	29,142		$	28,563		$	27,623		$	27,025
Bulk⁽³⁾		278			290			314			318						326			349			360			387

Total Primary		33,169			32,357			31,074			29,938						29,468			28,912			27,983			27,412
Pool		100			104			111			116						120			129			137			142

Total Risk In-Force	$	33,269		$	32,461		$	31,185		$	30,054					$	29,588		$	29,041		$	28,120		$	27,554


Primary Risk In-Force That Is GSE Conforming		95	%		96	%		96	%		96	%					96	%		97	%		97	%		97	%

Expense Ratio (Net Earned Premiums)⁽⁴⁾		27	%		28	%		27	%		26	%		27	%		29	%		28	%		26	%		26	%		27	%

Expense Ratio (Net Premiums Written)⁽⁵⁾		25	%		24	%		23	%		24	%		24	%		26	%		24	%		23	%		23	%		24	%

Flow Persistency		78	%		77	%		77	%		82	%					81	%		80	%		79	%		81	%

Risk To Capital Ratio⁽⁶⁾		14.4:1			15.0:1			15.0:1			15.3:1						16.3:1			14.3:1			13.7:1			14.1:1

PMIERs Sufficiency Ratio⁽⁷⁾		115	%		117	%		115	%		113	%					109	%		NA			NA			NA

Average Primary Loan Size (in thousands)	$	196		$	195		$	192		$	189					$	188		$	186		$	184		$	182

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

⁽¹⁾

Primary insurance in-force represents aggregate loan balances for outstanding insurance policies and is used to determine premiums. Original loan balances are presented for policies with level renewal premiums. Amortized loan balances are presented for policies with annual, amortizing renewal premiums.

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

⁽³⁾	As of December 31, 2016, 89% of the bulk risk in-force was related to loans financed by lenders who participated in the mortgage programs sponsored by the Federal Home Loan Banks.

⁽⁴⁾	The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

⁽⁵⁾	The ratio of an insurer’s general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

⁽⁶⁾

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

⁽⁷⁾

PMIERs became effective December 31, 2015. The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. The current period PMIERs sufficiency ratio is an estimate due to the timing of the PMIERs filing for the U.S. mortgage insurance business. As of December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, the PMIERs sufficiency ratios were in excess of $350 million, $400 million, $350 million, $300 million and $200 million, respectively, of available assets above the PMIERs requirements.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Loss Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow
Direct⁽¹⁾	$	65		$	80		$	94		$	112		$	351		$	158		$	98		$	131		$	130		$	517
Assumed⁽²⁾		1			1			1			2			5			1			3			4			5			13
Ceded		—			—			(1	)		(3	)		(4	)		(1	)		—			(1	)		(16	)		(18	)
Loss adjustment expenses		3			2			3			3			11			3			3			3			4			13

Total Flow		69			83			97			114			363			161			104			137			123			525
Bulk		1			1			1			2			5			1			1			2			2			6

Total Primary		70			84			98			116			368			162			105			139			125			531
Pool		1			—			1			—			2			1			—			1			1			3

Total Paid Claims	$	71		$	84		$	99		$	116		$	370		$	163		$	105		$	140		$	126		$	534


Average Paid Claim (in thousands)⁽³⁾	$	50.0		$	53.6		$	50.8		$	51.9					$	63.6		$	54.0		$	50.8		$	46.5

Average Reserve Per Delinquency (in thousands)
Flow	$	25.1		$	25.9		$	27.8		$	28.3					$	27.2		$	29.4		$	30.6		$	31.0
Bulk loans with established reserve		18.5			18.8			21.1			21.2						19.9			20.0			21.5			21.2

Reserves:
Flow direct case	$	579		$	599		$	640		$	698					$	775		$	870		$	909		$	992
Bulk direct case		13			14			14			15						17			17			18			20
Assumed⁽²⁾		5			6			6			7						8			9			12			15
All other⁽⁴⁾		38			39			47			48						49			57			57			60

Total Reserves	$	635		$	658		$	707		$	768					$	849		$	953		$	996		$	1,087


Beginning Reserves	$	658		$	707		$	768		$	849		$	849		$	953		$	996		$	1,087		$	1,180		$	1,180
Paid claims⁽¹⁾		(71	)		(84	)		(99	)		(119	)		(373	)		(164	)		(105	)		(141	)		(142	)		(552	)
Increase in reserves		48			35			38			38			159			60			62			50			49			221

Ending Reserves	$	635		$	658		$	707		$	768		$	635		$	849		$	953		$	996		$	1,087		$	849


Beginning Reinsurance Recoverable⁽⁵⁾	$	2		$	2		$	2		$	5		$	5		$	6		$	6		$	7		$	24		$	24
Ceded paid claims		—			—			—			(3	)		(3	)		(1	)		—			(1	)		(16	)		(18	)
Decrease in recoverable		—			—			—			—			—			—			—			—			(1	)		(1	)

Ending Reinsurance Recoverable	$	2		$	2		$	2		$	2		$	2		$	5		$	6		$	6		$	7		$	5

Loss Ratio⁽⁶⁾		28	%		21	%		24	%		24	%		24	%		39	%		43	%		33	%		33	%		37	%

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

⁽¹⁾	Direct paid claims and paid claims in the fourth quarter of 2015 included payment of a previously disclosed negotiated servicer settlement reached in 2014 and payment in relation to an agreement on non-performing loans.

⁽²⁾	Assumed is comprised of reinsurance arrangements with state governmental housing finance agencies.

⁽³⁾	Average paid claim in the fourth quarter of 2015 reflected the non-recurring payment to extinguish the risk on prior paid claims pursuant to a previously disclosed servicer settlement reached in 2014.

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

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

⁽⁶⁾	The ratio of incurred losses and loss adjustment expenses to net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		24,631			24,720			24,753			26,491						30,416			31,678			31,876			34,220
Bulk loans with an established reserve		756			778			732			776						889			917			908			984
Bulk loans with no reserve⁽¹⁾		322			305			313			335						358			394			415			461

Total Number of Primary Delinquencies		25,709			25,803			25,798			27,602						31,663			32,989			33,199			35,665


Beginning Number of Primary Delinquencies		25,803			25,798			27,602			31,663			31,663			32,989			33,199			35,665			39,786			39,786
New delinquencies		9,504			9,609			8,265			8,761			36,139			10,043			10,192			9,061			9,554			38,850
Delinquency cures		(8,201	)		(8,043	)		(8,137	)		(10,602	)		(34,983	)		(8,835	)		(8,484	)		(8,800	)		(10,988	)		(37,107	)
Paid claims		(1,397	)		(1,561	)		(1,932	)		(2,220	)		(7,110	)		(2,534	)		(1,918	)		(2,727	)		(2,687	)		(9,866	)

Ending Number of Primary Delinquencies		25,709			25,803			25,798			27,602			25,709			31,663			32,989			33,199			35,665			31,663


Composition of Cures
Reported delinquent and cured-intraquarter		1,742			1,798			1,597			2,503						1,740			1,805			1,658			2,271
Number of missed payments delinquent prior to cure:
3 payments or less		4,660			4,276			4,335			5,775						5,005			4,630			4,260			6,112
4 - 11 payments		1,301			1,413			1,577			1,443						1,330			1,487			2,250			1,912
12 payments or more		498			556			628			881						760			562			632			693

Total		8,201			8,043			8,137			10,602						8,835			8,484			8,800			10,988


Primary Delinquencies by Missed Payment Status
3 payments or less		9,703			9,405			8,529			8,395						10,487			10,226			9,432			9,271
4 - 11 payments		6,548			6,212			6,323			7,254						7,577			7,376			7,824			9,086
12 payments or more		9,458			10,186			10,946			11,953						13,599			15,387			15,943			17,308

Primary Delinquencies		25,709			25,803			25,798			27,602						31,663			32,989			33,199			35,665




	December 31, 2016
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies			Direct Case Reserves⁽²⁾			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default		9,355		$	49		$	382			13	%
4 - 11 payments in default		6,364			147			268			55	%
12 payments or more in default		8,912			383			434			88	%

Total		24,631		$	579		$	1,084			53	%


	December 31, 2015
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies			Direct Case Reserves⁽²⁾			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default		10,103		$	52		$	405			13	%
4 - 11 payments in default		7,366			180			307			59	%
12 payments or more in default		12,947			543			638			85	%

Total		30,416		$	775		$	1,350			57	%

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2016												2015
	4Q			3Q			2Q			1Q			4Q			3Q			2Q			1Q
Primary Loans
Primary loans in-force		699,841			686,789			668,951			655,300			651,668			647,126			636,640			631,591
Primary delinquent loans		25,709			25,803			25,798			27,602			31,663			32,989			33,199			35,665
Primary delinquency rate		3.67	%		3.76	%		3.86	%		4.21	%		4.86	%		5.10	%		5.21	%		5.65	%

Flow loans in-force		678,168			665,821			647,100			632,010			627,349			620,430			608,615			601,472
Flow delinquent loans		24,631			24,720			24,753			26,491			30,416			31,678			31,876			34,220
Flow delinquency rate		3.63	%		3.71	%		3.83	%		4.19	%		4.85	%		5.11	%		5.24	%		5.69	%

Bulk loans in-force		21,673			20,968			21,851			23,290			24,319			26,696			28,025			30,119
Bulk delinquent loans		1,078			1,083			1,045			1,111			1,247			1,311			1,323			1,445
Bulk delinquency rate		4.97	%		5.17	%		4.78	%		4.77	%		5.13	%		4.91	%		4.72	%		4.80	%

A minus and sub-prime loans in-force		23,063			24,281			25,552			26,995			28,332			29,745			31,051			33,805
A minus and sub-prime delinquent loans		5,252			5,306			5,220			5,546			6,448			6,642			6,530			7,019
A minus and sub-prime delinquency rate		22.77	%		21.85	%		20.43	%		20.54	%		22.76	%		22.33	%		21.03	%		20.76	%

Pool Loans
Pool loans in-force		5,742			5,896			6,196			6,406			6,620			7,284			7,709			7,979
Pool delinquent loans		325			343			356			369			386			426			447			468
Pool delinquency rate		5.66	%		5.82	%		5.75	%		5.76	%		5.83	%		5.85	%		5.80	%		5.87	%

Primary Risk In-Force by Credit Quality
Over 735		55	%		55	%		54	%		53	%		53	%		52	%		52	%		52	%
680-735		31	%		31	%		32	%		32	%		31	%		31	%		31	%		31	%
660-679⁽¹⁾		6	%		6	%		6	%		6	%		7	%		7	%		7	%		7	%
620-659		6	%		6	%		6	%		7	%		7	%		7	%		7	%		7	%
< 620		2	%		2	%		2	%		2	%		2	%		3	%		3	%		3	%

⁽¹⁾	Loans with unknown FICO scores are included in the 660-679 category.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	December 31, 2016
Policy Year	Average Rate⁽¹⁾			% of Total Reserves⁽²⁾			Primary Insurance In-Force		% of Total			Primary Risk In-Force		% of Total			Delinquency Rate
2004 and prior		6.02	%		11.3	%	$	2,957		2.2	%	$	580		1.7	%		14.02	%
2005		5.62	%		10.8			2,688		2.0			650		2.0			13.14	%
2006		5.77	%		16.5			4,729		3.4			1,113		3.3			13.08	%
2007		5.70	%		34.7			12,371		9.0			2,845		8.6			11.84	%
2008		5.25	%		16.5			10,286		7.5			2,407		7.3			6.58	%
2009		4.95	%		0.8			1,201		0.9			258		0.8			2.63	%
2010		4.68	%		0.7			1,577		1.1			360		1.1			1.91	%
2011		4.53	%		0.7			2,188		1.6			522		1.6			1.67	%
2012		3.84	%		0.8			5,823		4.2			1,429		4.3			0.84	%
2013		4.03	%		1.6			10,422		7.6			2,555		7.7			0.88	%
2014		4.41	%		2.7			15,163		11.0			3,717		11.2			1.10	%
2015		4.11	%		2.3			26,725		19.4			6,574		19.8			0.62	%
2016		3.86	%		0.6			41,374		30.1			10,159		30.6			0.14	%

Total		4.53	%		100.0	%	$	137,504		100.0	%	$	33,169		100.0	%		3.67	%


	December 31, 2016						September 30, 2016					December 31, 2015
	Primary Risk In-Force			Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate			Primary Risk In-Force⁽³⁾		Primary Delinquency Rate
Lender concentration (by original applicant)	$	33,169			3.67	%	$	32,357		3.76	%	$	29,468		4.86	%
Top 10 lenders		10,478			4.64	%		10,538		4.63	%		10,913		6.47	%
Top 20 lenders		13,737			4.52	%		13,696		4.56	%		13,500		5.68	%

Loan-to-value ratio
95.01% and above	$	5,677			6.97	%	$	5,685		6.92	%	$	5,879		8.17	%
90.01% to 95.00%		16,738			2.51	%		16,168		2.55	%		13,828		3.36	%
80.01% to 90.00%		10,495			3.24	%		10,235		3.41	%		9,458		4.57	%
80.00% and below		259			3.27	%		269		3.19	%		303		3.39	%

Total	$	33,169			3.67	%	$	32,357		3.76	%	$	29,468		4.86	%

Loan grade
Prime	$	32,357			3.02	%	$	31,503		3.09	%	$	28,470		4.05	%
A minus and sub-prime		812			22.77	%		854		21.85	%		998		22.76	%

Total	$	33,169			3.67	%	$	32,357		3.76	%	$	29,468		4.86	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $635 million as of December 31, 2016.

⁽³⁾

Beginning in the second quarter of 2016, all flow risk in-force metrics are based upon more current loan balances as provided by servicers, lenders and investors and conform to the presentation under PMIERs. Previously, certain flow risk in-force metrics were based on original loan balances when current loan balances were not available. The prior period has been re-presented to reflect these modified metrics.

Canada Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Adjusted Operating Income and Sales—Canada Mortgage Insurance Segment

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	124		$	124		$	122		$	111		$	481		$	115		$	116		$	116		$	119		$	466
Net investment income		32			33			32			29			126			31			32			33			34			130
Net investment gains (losses)		25			—			(8	)		20			37			(11	)		(23	)		20			(18	)		(32	)
Policy fees and other income		1			(1	)		1			—			1			—			(1	)		—			1			—

Total revenues		182			156			147			160			645			135			124			169			136			564

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		23			30			25			26			104			26			24			21			25			96
Acquisition and operating expenses, net of deferrals		19			21			19			18			77			16			16			22			12			66
Amortization of deferred acquisition costs and intangibles		10			10			10			9			39			9			9			9			9			36
Interest expense		5			5			4			4			18			4			5			4			5			18

Total benefits and expenses		57			66			58			57			238			55			54			56			51			216

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		125			90			89			103			407			80			70			113			85			348
Provision for income taxes		37			24			23			29			113			20			17			31			22			90

INCOME FROM CONTINUING OPERATIONS		88			66			66			74			294			60			53			82			63			258
Less: income from continuing operations attributable to noncontrolling interests		41			30			30			34			135			27			24			38			29			118

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		47			36			36			40			159			33			29			44			34			140

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net⁽¹⁾		(14	)		—			4			(11	)		(21	)		7			13			(11	)		10			19
Taxes on adjustments		6			—			(2	)		4			8			(3	)		(4	)		4			(4	)		(7	)

ADJUSTED OPERATING INCOME⁽²⁾	$	39		$	36		$	38		$	33		$	146		$	37		$	38		$	37		$	40		$	152



SALES:
New Insurance Written (NIW)
Flow	$	3,900		$	5,300		$	4,400		$	2,500		$	16,100		$	4,700		$	6,600		$	5,400		$	3,300		$	20,000
Bulk		3,700			5,100			19,700			3,200			31,700			7,300			4,800			3,300			5,000			20,400

Total Canada NIW⁽³⁾	$	7,600		$	10,400		$	24,100		$	5,700		$	47,800		$	12,000		$	11,400		$	8,700		$	8,300		$	40,400


⁽¹⁾Net investment (gains) losses were adjusted for the portion of net investment gains (losses) attributable to noncontrolling interests as reconciled below:
Net investment (gains) losses, gross	$	(25	)	$	—		$	8		$	(20	)	$	(37	)	$	11		$	23		$	(20	)	$	18		$	32
Adjustment for net investment gains (losses) attributable to noncontrolling interests		11			—			(4	)		9			16			(4	)		(10	)		9			(8	)		(13	)

Net investment (gains) losses, net	$	(14	)	$	—		$	4		$	(11	)	$	(21	)	$	7		$	13		$	(11	)	$	10		$	19

⁽²⁾	Adjusted operating income for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $40 million and $155 million for the three and twelve months ended December 31, 2016, respectively.

⁽³⁾	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $7,600 million and $50,100 million for the three and twelve months ended December 31, 2016, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Selected Key Performance Measures—Canada Mortgage Insurance Segment

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	129		$	172		$	191		$	84		$	576		$	162		$	204		$	166		$	109		$	641
Loss Ratio⁽¹⁾		18	%		24	%		20	%		24	%		22	%		23	%		21	%		17	%		22	%		21	%
Expense Ratio (Net Earned Premiums)⁽²⁾		24	%		24	%		24	%		24	%		24	%		22	%		22	%		27	%		18	%		22	%
Expense Ratio (Net Premiums Written)⁽³⁾		23	%		18	%		15	%		32	%		20	%		15	%		12	%		19	%		20	%		16	%

Primary Insurance In-Force⁽⁴⁾	$	345,600		$	347,300		$	341,600		$	317,400					$	292,600		$	292,000		$	300,900		$	288,800
Primary Risk In-Force⁽⁵⁾
Flow	$	81,600		$	82,300		$	81,400		$	79,900					$	74,300		$	75,500		$	78,500		$	75,700
Bulk		39,400			39,200			38,100			31,200						28,100			26,700			26,800			25,400

Total	$	121,000		$	121,500		$	119,500		$	111,100					$	102,400		$	102,200		$	105,300		$	101,100



	December 31, 2016									September 30, 2016
Risk In-Force by Loan-To-Value Ratio⁽⁶⁾	Primary			Flow			Bulk			Primary			Flow			Bulk
95.01% and above	$	39,726		$	39,726		$	—		$	39,938		$	39,938		$	—
90.01% to 95.00%		24,366			24,366			—			24,616			24,616			—
80.01% to 90.00%		14,569			14,566			3			14,787			14,784			3
80.00% and below		42,289			2,939			39,350			42,198			2,973			39,225

Total	$	120,950		$	81,597		$	39,353		$	121,539		$	82,311		$	39,228

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

Amounts may not total due to rounding.

⁽¹⁾	The ratio of incurred losses and loss adjustment expenses to net earned premiums.

⁽²⁾	The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

⁽³⁾	The ratio of an insurer’s general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

⁽⁴⁾

As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding balances in Canada from most of its customers. As a result, the company estimates that the outstanding balance of insured mortgages was approximately $166.0 billion, $170.0 billion, $170.0 billion, $152.0 billion, $139.0 billion, $138.0 billion, $142.0 billion and $137.0 billion as of December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively. This is based on the extrapolation of the amounts reported by lenders to the entire insured population.

⁽⁵⁾

The business currently provides 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Canada has computed an “effective risk in-force” amount which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents the highest expected average per-claim payment for any one underwriting year over the life of the business. This factor was 35% for all periods presented.

⁽⁶⁾	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Selected Key Performance Measures—Canada Mortgage Insurance Segment

(dollar amounts in millions)


Primary Insurance	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Insured loans in-force^(1),(2)		2,029,400			2,006,484			1,968,171			1,860,978			1,835,916
Insured delinquent loans		2,070			2,027			1,961			2,034			1,829
Insured delinquency rate^(2),(3)		0.10	%		0.10	%		0.10	%		0.11	%		0.10	%

Flow loans in-force⁽¹⁾		1,394,067			1,379,020			1,358,927			1,341,636			1,331,773
Flow delinquent loans		1,693			1,715			1,669			1,711			1,550
Flow delinquency rate⁽³⁾		0.12	%		0.12	%		0.12	%		0.13	%		0.12	%

Bulk loans in-force⁽¹⁾		635,333			627,464			609,244			519,342			504,143
Bulk delinquent loans		377			312			292			323			279
Bulk delinquency rate⁽³⁾		0.06	%		0.05	%		0.05	%		0.06	%		0.06	%

Loss Metrics	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Beginning Reserves	$	112		$	104		$	102		$	87		$	83
Paid claims⁽⁴⁾		(20	)		(20	)		(21	)		(18	)		(18	)
Increase in reserves		23			29			23			26			25
Impact of changes in foreign exchange rates		(3	)		(1	)		—			7			(3	)

Ending Reserves	$	112		$	112		$	104		$	102		$	87


	December 31, 2016						September 30, 2016						December 31, 2015
Province and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
Ontario		47	%		0.04	%		46	%		0.04	%		47	%		0.05	%
Alberta		16			0.22	%		16			0.22	%		17			0.12	%
British Columbia		15			0.06	%		15			0.07	%		14			0.08	%
Quebec		13			0.15	%		13			0.15	%		13			0.19	%
Saskatchewan		3			0.28	%		3			0.27	%		3			0.17	%
Nova Scotia		2			0.18	%		2			0.20	%		2			0.18	%
Manitoba		2			0.07	%		2			0.08	%		2			0.09	%
New Brunswick		1			0.19	%		1			0.15	%		1			0.20	%
All Other		1			0.17	%		2			0.14	%		1			0.13	%

Total		100	%		0.10	%		100	%		0.10	%		100	%		0.10	%


By Policy Year
2007 and prior		30	%		0.04	%		30	%		0.04	%		36	%		0.04	%
2008		5			0.17	%		4			0.16	%		6			0.19	%
2009		4			0.14	%		4			0.16	%		4			0.16	%
2010		6			0.19	%		6			0.19	%		7			0.21	%
2011		5			0.25	%		6			0.27	%		6			0.26	%
2012		7			0.23	%		7			0.21	%		7			0.22	%
2013		7			0.20	%		8			0.19	%		9			0.16	%
2014		9			0.18	%		9			0.17	%		10			0.09	%
2015		12			0.07	%		13			0.06	%		15			0.01	%
2016		15			0.02	%		13			0.01	%		—			—	%

Total		100	%		0.10	%		100	%		0.10	%		100	%		0.10	%

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

⁽²⁾

As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding loans in-force in Canada from most of its customers. As a result, the company estimates that the outstanding loans in-force were 969,000 as of December 31, 2016, 973,000 as of September 30, 2016, 968,000 as of June 30, 2016, 883,000 as of March 31, 2016 and 870,000 as of December 31, 2015. This is based on the extrapolation of the amounts reported by lenders to the entire insured population. The corresponding insured delinquency rate was 0.21% as of December 31, 2016 and September 30, 2016, 0.20% as of June 30, 2016, 0.23% as of March 31, 2016 and 0.21% as of December 31, 2015.

⁽³⁾	Delinquency rates are based on insured loans in-force.

⁽⁴⁾	Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Selected Key Performance Measures—Canada Mortgage Insurance Segment

(Canadian dollar amounts in millions)


	2016														2015
	4Q			3Q			2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	25		$	26		$	25		$	24		$	100	$	23		$	25		$	25		$	25		$	98
Bulk		1			1			2			1			5		1			1			1			2			5

Total Paid Claims	$	26		$	27		$	27		$	25		$	105	$	24		$	26		$	26		$	27		$	103


Average Paid Claim (in thousands)	$	66.3		$	62.0		$	62.5		$	67.8				$	63.7		$	66.2		$	58.7		$	67.9

Average Reserve Per Delinquency (in thousands)	$	72.9		$	72.8		$	69.1		$	65.0				$	65.7		$	64.2		$	63.6		$	60.4

Loss Metrics

Beginning Reserves	$	148		$	136		$	132		$	120				$	110		$	106		$	108		$	106
Paid claims⁽¹⁾		(26	)		(27	)		(27	)		(25	)				(24	)		(26	)		(26	)		(27	)
Increase in reserves		29			39			31			37					34			30			24			29

Ending Reserves	$	151		$	148		$	136		$	132				$	120		$	110		$	106		$	108

Loan Amount⁽²⁾

Over $550K		8	%		8	%		8	%		7	%				7	%		7	%		6	%		6	%
$400K to $550K		14			14			14			13					13			12			12			12
$250K to $400K		34			33			34			34					33			33			33			33
$100K to $250K		40			41			40			42					43			44			44			44
$100K or Less		4			4			4			4					4			4			5			5

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


Average Primary Loan Size (in thousands)	$	229		$	227		$	225		$	222				$	221		$	218		$	216		$	215

All amounts presented in Canadian dollars.

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

⁽²⁾	The percentages in this table are based on the amount of primary insurance in-force in each loan band as a percentage of total insurance in-force.

Australia Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Adjusted Operating Income and Sales—Australia Mortgage Insurance Segment

(amounts in millions)


	2016														2015
	4Q			3Q			2Q			1Q		Total			4Q			3Q			2Q		1Q			Total
REVENUES:
Premiums	$	82		$	88		$	86		$	81	$	337		$	86		$	92		$	90	$	89		$	357
Net investment income		22			23			25			24		94			25			28			29		32			114
Net investment gains (losses)		3			4			2			—		9			2			3			—		1			6
Policy fees and other income		—			—			—			—		—			1			(1	)		1		(4	)		(3	)

Total revenues		107			115			113			105		440			114			122			120		118			474

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		24			37			31			21		113			15			27			25		14			81
Acquisition and operating expenses, net of deferrals		29			23			25			19		96			24			27			25		22			98
Amortization of deferred acquisition costs and intangibles		3			4			4			3		14			4			4			5		5			18
Interest expense		2			2			3			3		10			3			3			2		2			10

Total benefits and expenses		58			66			63			46		233			46			61			57		43			207

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		49			49			50			59		207			68			61			63		75			267
Provision for income taxes		16			16			16			19		67			20			18			18		24			80

INCOME FROM CONTINUING OPERATIONS		33			33			34			40		140			48			43			45		51			187
Less: income from continuing operations attributable to noncontrolling interests		18			18			18			21		75			25			22			16		21			84

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		15			15			16			19		65			23			21			29		30			103

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

ADJUSTED OPERATING INCOME⁽³⁾	$	14		$	14		$	15		$	19	$	62		$	22		$	21		$	29	$	30		$	102



SALES:
New Insurance Written (NIW)
Flow	$	5,000		$	4,600		$	5,000		$	4,400	$	19,000		$	4,600		$	6,300		$	6,500	$	5,800		$	23,200
Bulk		—			—			800			—		800			—			—			1,700		—			1,700

Total Australia NIW⁽⁴⁾	$	5,000		$	4,600		$	5,800		$	4,400	$	19,800		$	4,600		$	6,300		$	8,200	$	5,800		$	24,900

⁽¹⁾	Net investment (gains) losses were adjusted for the portion of net investment gains (losses) attributable to noncontrolling interests as reconciled below:


Net investment (gains) losses, gross	$	(3	)	$	(4	)	$	(2	)	$	—	$	(9	)	$	(2	)	$	(3	)	$	—	$	(1	)	$	(6	)
Adjustment for net investment gains (losses) attributable to noncontrolling interests		1			2			1			—		4			—			2			—		1			3

Net investment (gains) losses, net	$	(2	)	$	(2	)	$	(1	)	$	—	$	(5	)	$	(2	)	$	(1	)	$	—	$	—		$	(3	)

⁽²⁾	For the three months ended September 30, 2015, (gains) losses on early extinguishment of debt were adjusted by $1 million for the portion attributable to noncontrolling interests.

⁽³⁾	Adjusted operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $13 million and $64 million for the three and twelve months ended December 31, 2016, respectively.

⁽⁴⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $4,700 million and $20,200 million for the three and twelve months ended December 31, 2016, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	62		$	57		$	65		$	47		$	231		$	55		$	79		$	107		$	87		$	328
Loss Ratio^(1),(2)		30	%		42	%		36	%		26	%		34	%		17	%		29	%		28	%		15	%		23	%
Expense Ratio (Net Earned Premiums)⁽³⁾		39	%		31	%		33	%		27	%		33	%		31	%		34	%		33	%		30	%		32	%
Expense Ratio (Net Premiums Written)⁽⁴⁾		51	%		48	%		44	%		47	%		47	%		49	%		40	%		28	%		31	%		35	%

Primary Insurance In-Force	$	234,000		$	247,900		$	241,100		$	246,800					$	233,600		$	224,100		$	243,800		$	240,900
Primary Risk In-Force⁽⁵⁾
Flow	$	76,000		$	80,400		$	78,300		$	80,300					$	76,000		$	72,900		$	79,100		$	78,600
Bulk		5,400			5,900			5,700			5,700						5,500			5,500			6,200			5,700

Total	$	81,400		$	86,300		$	84,000		$	86,000					$	81,500		$	78,400		$	85,300		$	84,300



	December 31, 2016									September 30, 2016
Risk In-Force by Loan-To-Value Ratio⁽⁶⁾	Primary			Flow			Bulk			Primary			Flow			Bulk
95.01% and above	$	13,775		$	13,775		$	—		$	14,933		$	14,933		$	—
90.01% to 95.00%		21,593			21,587			6			22,670			22,664			6
80.01% to 90.00%		21,971			21,910			61			23,153			23,087			66
80.00% and below		24,094			18,745			5,349			25,536			19,743			5,793

Total	$	81,433		$	76,017		$	5,416		$	86,292		$	80,427		$	5,865

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

Amounts may not total due to rounding.

⁽¹⁾	The ratio of incurred losses and loss adjustment expenses to net earned premiums.

⁽²⁾

During the third quarter of 2015, the company increased reserves $9 million mainly related to the estimate of the period of time it takes for a delinquent loan to be reported and increased net earned premiums $8 million from refinements to premium recognition factors. These adjustments unfavorably impacted the loss ratio by seven percentage points for the three months ended September 30, 2015. During the first quarter of 2015, the company accrued a $7 million pre-tax receivable for expected recoveries relating to paid claims reflecting its experience of successful borrower recovery activity, which favorably impacted the loss ratio by nine percentage points for the three months ended March 31, 2015.

⁽³⁾

The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. The debt early redemption payment of $2 million in the third quarter of 2015 unfavorably impacted this expense ratio by two percentage points for the three months ended September 30, 2015.

⁽⁴⁾

The ratio of an insurer’s general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. The debt early redemption payment of $2 million in the third quarter of 2015 unfavorably impacted this expense ratio by two percentage points for the three months ended September 30, 2015.

⁽⁵⁾

The business currently provides 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Australia has computed an “effective risk in-force” amount which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents the highest expected average per-claim payment for any one underwriting year over the life of the business. This factor was 35% for all periods presented. Australia also has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor.

⁽⁶⁾	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(dollar amounts in millions)


Primary Insurance	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Insured loans in-force		1,464,139			1,470,302			1,477,826			1,479,544			1,478,434
Insured delinquent loans		6,731			6,844			6,413			5,889			5,552
Insured delinquency rate		0.46	%		0.47	%		0.43	%		0.40	%		0.38	%

Flow loans in-force		1,354,616			1,358,286			1,364,756			1,366,914			1,364,628
Flow delinquent loans		6,451			6,574			6,143			5,633			5,317
Flow delinquency rate		0.48	%		0.48	%		0.45	%		0.41	%		0.39	%

Bulk loans in-force		109,523			112,016			113,070			112,630			113,806
Bulk delinquent loans		280			270			270			256			235
Bulk delinquency rate		0.26	%		0.24	%		0.24	%		0.23	%		0.21	%

Loss Metrics	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Beginning Reserves	$	215		$	190		$	181		$	165		$	156
Paid claims⁽¹⁾		(16	)		(18	)		(17	)		(13	)		(14	)
Increase in reserves		25			37			31			20			17
Impact of changes in foreign exchange rates		(13	)		6			(5	)		9			6

Ending Reserves	$	211		$	215		$	190		$	181		$	165


	December 31, 2016						September 30, 2016						December 31, 2015
State and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
New South Wales		28	%		0.30	%		28	%		0.32	%		29	%		0.27%
Queensland		23			0.66	%		23			0.67	%		23			0.53%
Victoria		23			0.38	%		23			0.39	%		23			0.33%
Western Australia		12			0.74	%		12			0.69	%		11			0.46%
South Australia		6			0.61	%		6			0.62	%		6			0.51%
Australian Capital Territory		3			0.17	%		3			0.20	%		3			0.17%
Tasmania		2			0.35	%		2			0.37	%		2			0.32%
New Zealand		2			0.07	%		2			0.10	%		2			0.17%
Northern Territory		1			0.36	%		1			0.33	%		1			0.17%

Total		100	%		0.46	%		100	%		0.47	%		100	%		0.38%


By Policy Year
2007 and prior		34	%		0.30	%		34	%		0.31	%		36	%		0.29%
2008		6			1.03	%		6			1.07	%		6			0.89%
2009		7			0.87	%		7			0.93	%		8			0.71%
2010		5			0.56	%		5			0.59	%		6			0.46%
2011		5			0.68	%		6			0.66	%		6			0.46%
2012		8			0.80	%		8			0.72	%		8			0.49%
2013		8			0.61	%		9			0.62	%		10			0.37%
2014		10			0.51	%		10			0.45	%		11			0.19%
2015		9			0.23	%		9			0.17	%		9			0.02%
2016		8			0.03	%		6			0.01	%		—			— %

Total		100	%		0.46	%		100	%		0.47	%		100	%		0.38%

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(Australian dollar amounts in millions)


	2016														2015
	4Q			3Q			2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	21		$	24		$	23		$	18		$	86	$	22		$	21		$	19		$	17		$	79
Bulk		—			—			—			—			—		—			—			—			1			1

Total Paid Claims	$	21		$	24		$	23		$	18		$	86	$	22		$	21		$	19		$	18		$	80


Average Paid Claim (in thousands)	$	67.1		$	73.3		$	79.2		$	65.8				$	71.0		$	65.9		$	66.9		$	62.5

Average Reserve Per Delinquency (in thousands)	$	43.5		$	41.0		$	39.9		$	40.1				$	40.7		$	38.3		$	35.2		$	36.4

Loss Metrics
Beginning Reserves	$	281		$	256		$	236		$	226				$	222		$	208		$	196		$	186
Paid claims⁽¹⁾		(21	)		(24	)		(23	)		(18	)				(22	)		(21	)		(19	)		(18	)
Increase in reserves		33			49			43			28					26			35			31			28

Ending Reserves	$	293		$	281		$	256		$	236				$	226		$	222		$	208		$	196

Loan Amount⁽²⁾

Over $550K		16	%		15	%		15	%		15	%				15	%		15	%		14	%		13	%
$400K to $550K		20			20			20			20					19			19			19			19
$250K to $400K		35			36			36			36					36			36			36			37
$100K to $250K		24			24			24			24					25			25			25			26
$100K or Less		5			5			5			5					5			5			6			5

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


Average Primary Loan Size (in thousands)	$	221		$	220		$	219		$	218				$	217		$	216		$	213		$	211

All amounts presented in Australian dollars.

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

⁽²⁾	The percentages in this table are based on the amount of primary insurance in-force in each loan band as a percentage of total insurance in-force.

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

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

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	753		$	725		$	756		$	436		$	2,670		$	797		$	784		$	769		$	778		$	3,128
Net investment income		677			695			670			684			2,726			673			680			677			671			2,701
Net investment gains (losses)		9			21			114			(16	)		128			17			(16	)		(7	)		(4	)		(10	)
Policy fees and other income		194			175			180			177			726			187			177			182			180			726

Total revenues		1,633			1,616			1,720			1,281			6,250			1,674			1,625			1,621			1,625			6,545

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,419			1,556			1,089			758			4,822			1,324			1,155			1,122			1,091			4,692
Interest credited		138			140			143			144			565			148			148			150			150			596
Acquisition and operating expenses, net of deferrals		135			149			199			165			648			178			176			167			163			684
Amortization of deferred acquisition costs and intangibles		172			69			84			78			403			194			530			75			73			872
Interest expense		3			2			5			28			38			23			22			22			25			92

Total benefits and expenses		1,867			1,916			1,520			1,173			6,476			1,867			2,031			1,536			1,502			6,936

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(234	)		(300	)		200			108			(226	)		(193	)		(406	)		85			123			(391	)
Provision (benefit) for income taxes		(83	)		(106	)		70			39			(80	)		(68	)		(144	)		31			43			(138	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(151	)		(194	)		130			69			(146	)		(125	)		(262	)		54			80			(253	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		(4	)		(21	)		(119	)		11			(133	)		(20	)		10			4			1			(5	)
(Gains) losses on sale of businesses		—			—			(1	)		—			(1	)		—			—			—			—			—
Losses from life block transactions		—			—			—			9			9			—			455			—			—			455
Expenses related to restructuring		—			1			3			15			19			3			—			2			—			5
Taxes on adjustments		1			7			42			(13	)		37			7			(163	)		(3	)		—			(159	)

ADJUSTED OPERATING INCOME (LOSS)	$	(154	)	$	(207	)	$	55		$	91		$	(215	)	$	(135	)	$	40		$	57		$	81		$	43

⁽¹⁾	Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:


Net investment (gains) losses, gross	$	(9	)	$	(21	)	$	(114	)	$	16		$	(128	)	$	(17	)	$	16		$	7		$	4		$	10
Adjustment for DAC and other intangible amortization and certain benefit reserves		5			—			(5	)		(5	)		(5	)		(3	)		(6	)		(3	)		(3	)		(15	)

Net investment (gains) losses, net	$	(4	)	$	(21	)	$	(119	)	$	11		$	(133	)	$	(20	)	$	10		$	4		$	1		$	(5	)

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Adjusted Operating Income (Loss) and Sales—U.S. Life Insurance Segment—Long-Term Care Insurance

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	650		$	610		$	636		$	618		$	2,514		$	633		$	618		$	597		$	589		$	2,437
Net investment income		356			353			344			329			1,382			325			327			320			313			1,285
Net investment gains (losses)		(21	)		17			139			4			139			24			4			(3	)		3			28
Policy fees and other income		1			—			—			1			2			1			—			1			—			2

Total revenues		986			980			1,119			952			4,037			983			949			915			905			3,752

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		889			1,262			806			776			3,733			797			825			780			766			3,168
Interest credited		—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		94			95			93			95			377			110			112			98			95			415
Amortization of deferred acquisition costs and intangibles		26			25			26			26			103			25			24			24			26			99
Interest expense		—			—			—			—			—			—			—			—			—			—

Total benefits and expenses		1,009			1,382			925			897			4,213			932			961			902			887			3,682

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(23	)		(402	)		194			55			(176	)		51			(12	)		13			18			70
Provision (benefit) for income taxes		(8	)		(142	)		68			20			(62	)		19			(5	)		5			6			25

INCOME (LOSS) FROM CONTINUING OPERATIONS		(15	)		(260	)		126			35			(114	)		32			(7	)		8			12			45

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		21			(17	)		(139	)		(4	)		(139	)		(24	)		(4	)		3			(3	)		(28	)
Expenses related to restructuring		—			1			2			3			6			2			—			1			—			3
Taxes on adjustments		(7	)		6			48			—			47			9			1			(2	)		1			9

ADJUSTED OPERATING INCOME (LOSS)	$	(1	)	$	(270	)	$	37		$	34		$	(200	)	$	19		$	(10	)	$	10		$	10		$	29



SALES:
Individual Long-Term Care Insurance	$	1		$	2		$	4		$	5		$	12		$	8		$	7		$	8		$	10		$	33
Group Long-Term Care Insurance		1			3			2			2			8			2			1			1			1			5

Total Sales	$	2		$	5		$	6		$	7		$	20		$	10		$	8		$	9		$	11		$	38

RATIOS:
Loss Ratio⁽¹⁾		78.6	%		145.5	%		70.1	%		67.6	%		90.0	%		72.9	%		76.4	%		72.6	%		72.4	%		73.6	%
Gross Benefits Ratio⁽²⁾		136.9	%		207.0	%		126.7	%		125.5	%		148.5	%		125.9	%		133.5	%		130.5	%		130.2	%		130.0	%

⁽¹⁾	The loss ratio was calculated by dividing benefits and other changes in policy reserves less tabular interest on reserves less loss adjustment expenses by net earned premiums.

⁽²⁾	The gross benefits ratio was calculated by dividing benefits and other changes in policy reserves by net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

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

(amounts in millions)


	2016															2015
		4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums⁽¹⁾	$	103		$	115		$	120		$	(185	)	$	153		$	160		$	162		$	169		$	179		$	670
Net investment income		116			128			117			133			494			125			126			127			127			505
Net investment gains (losses)		19			4			(1	)		2			24			15			(8	)		3			3			13
Policy fees and other income		190			171			176			173			710			183			175			178			178			714

Total revenues		428			418			412			123			1,381			483			455			477			487			1,902

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves⁽¹⁾		470			216			231			(87	)		830			446			248			266			250			1,210
Interest credited		66			64			65			64			259			68			66			68			66			268
Acquisition and operating expenses, net of deferrals		36			31			39			51			157			50			48			52			51			201
Amortization of deferred acquisition costs and intangibles		133			27			27			33			220			150			487			33			30			700
Interest expense		3			2			5			28			38			23			22			22			25			92

Total benefits and expenses		708			340			367			89			1,504			737			871			441			422			2,471

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(280	)		78			45			34			(123	)		(254	)		(416	)		36			65			(569	)
Provision (benefit) for income taxes		(100	)		28			16			12			(44	)		(90	)		(147	)		13			23			(201	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(180	)		50			29			22			(79	)		(164	)		(269	)		23			42			(368	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(19	)		(4	)		1			(2	)		(24	)		(15	)		8			(3	)		(3	)		(13	)
(Gains) losses on sale of businesses		—			—			(1	)		—			(1	)		—			—			—			—			—
Losses from life block transactions		—			—			—			9			9			—			455			—			—			455
Expenses related to restructuring		—			—			2			8			10			—			—			1			—			1
Taxes on adjustments		6			2			—			(6	)		2			6			(163	)		1			1			(155	)

ADJUSTED OPERATING INCOME (LOSS)	$	(193	)	$	48		$	31		$	31		$	(83	)	$	(173	)	$	31		$	22		$	40		$	(80	)

SALES:
Term Life	$	—		$	—		$	2		$	5		$	7		$	6		$	7		$	9		$	9		$	31
Universal Life		—			1			1			2			4			3			2			4			4			13
Linked-Benefits		—			—			1			2			3			1			3			2			4			10

Total Sales	$	—		$	1		$	4		$	9		$	14		$	10		$	12		$	15		$	17		$	54

⁽¹⁾

In January 2016, as part of a life block transaction, the company entered into a new reinsurance agreement to cede certain of its term life insurance policies. This new reinsurance agreement primarily reduced premiums by $326 million and reduced benefits and other changes in policy reserves by $331 million for the amounts initially ceded.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Adjusted Operating Income (Loss) and Sales—U.S. Life Insurance Segment—Fixed Annuities

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	3		$	3		$	4		$	4		$	3		$	10		$	21
Net investment income		205			214			209			222			850			223			227			230			231			911
Net investment gains (losses)		11			—			(24	)		(22	)		(35	)		(22	)		(12	)		(7	)		(10	)		(51	)
Policy fees and other income		3			4			4			3			14			3			2			3			2			10

Total revenues		219			218			189			206			832			208			221			229			233			891

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves⁽¹⁾		60			78			52			69			259			81			82			76			75			314
Interest credited		72			76			78			80			306			80			82			82			84			328
Acquisition and operating expenses, net of deferrals⁽²⁾		5			23			67			19			114			18			16			17			17			68
Amortization of deferred acquisition costs and intangibles		13			17			31			19			80			19			19			18			17			73
Interest expense		—			—			—			—			—			—			—			—			—			—

Total benefits and expenses		150			194			228			187			759			198			199			193			193			783

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		69			24			(39	)		19			73			10			22			36			40			108
Provision (benefit) for income taxes		25			8			(14	)		7			26			3			8			13			14			38

INCOME (LOSS) FROM CONTINUING OPERATIONS		44			16			(25	)		12			47			7			14			23			26			70

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽³⁾		(6	)		—			19			17			30			19			6			4			7			36
Expenses related to restructuring		—			—			(1	)		4			3			1			—			—			—			1
Taxes on adjustments		2			(1	)		(6	)		(7	)		(12	)		(8	)		(1	)		(2	)		(2	)		(13	)

ADJUSTED OPERATING INCOME (LOSS)	$	40		$	15		$	(13	)	$	26		$	68		$	19		$	19		$	25		$	31		$	94


SALES:
Single Premium Deferred Annuities	$	—		$	1		$	8		$	159		$	168		$	297		$	248		$	211		$	306		$	1,062
Single Premium Immediate Annuities		—			—			1			9			10			17			12			13			20			62

Total Sales	$	—		$	1		$	9		$	168		$	178		$	314		$	260		$	224		$	326		$	1,124


⁽¹⁾ In the second quarter of 2016, benefits and other changes in policy reserves included $45 million of lower assumed reinsurance in connection with the recapture by a third party. ⁽²⁾ In the second quarter of 2016, acquisition and operating expenses, net of deferrals, included a $55 million ceding commission paid in connection with the recapture by a third party. ⁽³⁾ Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	(11	)	$	—		$	24		$	22		$	35		$	22		$	12		$	7		$	10		$	51
Adjustment for DAC and other intangible amortization and certain benefit reserves		5			—			(5	)		(5	)		(5	)		(3	)		(6	)		(3	)		(3	)		(15	)

Net investment (gains) losses, net	$	(6	)	$	—		$	19		$	17		$	30		$	19		$	6		$	4		$	7		$	36

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Adjusted Operating Income (Loss)—Runoff Segment

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	1		$	—		$	1
Net investment income		39			37			36			35			147			35			32			40			31			138
Net investment gains (losses)		3			4			(13	)		(8	)		(14	)		(30	)		(25	)		(8	)		(6	)		(69	)
Policy fees and other income		42			43			42			42			169			45			46			49			49			189

Total revenues		84			84			65			69			302			50			53			82			74			259

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		16			2			9			15			42			8			18			11			7			44
Interest credited		35			33			30			33			131			32			31			31			30			124
Acquisition and operating expenses, net of deferrals		14			20			18			16			68			19			17			21			19			76
Amortization of deferred acquisition costs and intangibles		4			7			12			6			29			(3	)		17			10			5			29
Interest expense		—			1			—			—			1			—			—			1			—			1

Total benefits and expenses		69			63			69			70			271			56			83			74			61			274

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		15			21			(4	)		(1	)		31			(6	)		(30	)		8			13			(15	)
Provision (benefit) for income taxes		4			6			(2	)		(2	)		6			(3	)		(12	)		2			3			(10	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		11			15			(2	)		1			25			(3	)		(18	)		6			10			(5	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		(7	)		(4	)		12			4			5			22			21			5			1			49
Taxes on adjustments		2			1			(4	)		(1	)		(2	)		(8	)		(7	)		(2	)		—			(17	)

ADJUSTED OPERATING INCOME (LOSS)	$	6		$	12		$	6		$	4		$	28		$	11		$	(4	)	$	9		$	11		$	27


⁽¹⁾ Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:

Net investment (gains) losses, gross	$	(3	)	$	(4	)	$	13		$	8		$	14		$	30		$	25		$	8		$	6		$	69
Adjustment for DAC and other intangible amortization and certain benefit reserves		(4	)		—			(1	)		(4	)		(9	)		(8	)		(4	)		(3	)		(5	)		(20	)

Net investment (gains) losses, net	$	(7	)	$	(4	)	$	12		$	4		$	5		$	22		$	21		$	5		$	1		$	49

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Adjusted Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	1		$	2		$	3		$	6		$	12		$	6		$	7		$	5		$	7		$	25
Net investment income		(1	)		1			1			2			3			3			(1	)		1			(6	)		(3	)
Net investment gains (losses)⁽²⁾		1			(9	)		(65	)		(14	)		(87	)		6			9			3			11			29
Policy fees and other income⁽³⁾		2			(1	)		76			1			78			—			—			(10	)		—			(10	)

Total revenues		3			(7	)		15			(5	)		6			15			15			(1	)		12			41

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			1			1			2			4			3			3			3			5			14
Acquisition and operating expenses, net of deferrals⁽⁴⁾		44			11			25			137			217			154			40			22			14			230
Amortization of deferred acquisition costs and intangibles		—			1			—			—			1			—			—			—			1			1
Interest expense		65			67			68			70			270			74			75			74			75			298

Total benefits and expenses		109			80			94			209			492			231			118			99			95			543

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(106	)		(87	)		(79	)		(214	)		(486	)		(216	)		(103	)		(100	)		(83	)		(502	)
Provision (benefit) for income taxes		(5	)		246			(31	)		(96	)		114			(28	)		(33	)		(39	)		(30	)		(130	)

LOSS FROM CONTINUING OPERATIONS		(101	)		(333	)		(48	)		(118	)		(600	)		(188	)		(70	)		(61	)		(53	)		(372	)

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(1	)		9			65			14			87			(6	)		(9	)		(3	)		(11	)		(29	)
(Gains) losses on sale of businesses		—			—			(9	)		7			(2	)		140			—			—			—			140
(Gains) losses on early extinguishment of debt, net		—			—			(64	)		16			(48	)		—			1			—			—			1
Expenses related to restructuring		—			—			2			—			2			2			—			1			—			3
Fees associated with bond consent solicitation		—			—			—			18			18			—			—			—			—			—
Taxes on adjustments		(1	)		(3	)		2			(42	)		(44	)		(6	)		10			1			4			9

ADJUSTED OPERATING LOSS	$	(103	)	$	(327	)	$	(52	)	$	(105	)	$	(587	)	$	(58	)	$	(68	)	$	(62	)	$	(60	)	$	(248	)

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

⁽²⁾	In the second quarter of 2016, net investment gains (losses) included a $64 million loss from the write-off of residual interest in certain policy loan securitization entities.

⁽³⁾	In the second quarter of 2016, the company settled restricted borrowings of $70 million related to a securitization entity and recorded a $64 million pre-tax gain related to the early extinguishment of debt, which was included in policy fees and other income.

⁽⁴⁾

In the first quarter of 2016, acquisition and operating expenses, net of deferrals, included the following: $83 million of legal fees and expenses, including $69 million related to the settlement of the long-term care insurance class action lawsuit; $20 million of make-whole expense on the early redemption of Genworth Holdings’ 2016 senior notes in January 2016; $18 million associated with Genworth Holdings’ bond consent solicitation for broker, advisor and investment banking fees; and an additional estimated loss of $7 million related to the planned sale of the mortgage insurance business in Europe. In the fourth quarter of 2015, acquisition and operating expenses, net of deferrals, included an estimated loss of $140 million related to the planned sale of the mortgage insurance business in Europe.

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Investments Summary

(amounts in millions)


		December 31, 2016					September 30, 2016					June 30, 2016					March 31, 2016					December 31, 2015
		Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total
Composition of Investment Portfolio
Fixed maturity securities:
Investment grade:
Public fixed maturity securities		$	33,733		46	%	$	35,544		45	%	$	35,003		45	%	$	33,362		44	%	$	31,969		43	%
Private fixed maturity securities			11,261		15			11,669		15			11,370		15			10,867		14			10,822		15
Residential mortgage-backed securities⁽¹⁾			4,314		6			4,742		6			4,981		6			5,041		7			4,998		7
Commercial mortgage-backed securities			3,106		4			3,148		4			2,940		4			2,633		4			2,475		3
Other asset-backed securities			3,140		4			3,310		4			3,279		4			3,287		4			3,253		4
State and political subdivisions			2,647		4			2,823		4			2,751		4			2,517		3			2,428		3
Non-investment grade fixed maturity securities			2,371		3			2,544		3			2,504		3			2,583		3			2,252		3
Equity securities:
Common stocks and mutual funds			179		—			175		—			140		—			108		—			37		—
Preferred stocks			453		1			415		1			341		1			323		—			273		—
Commercial mortgage loans			6,111		8			6,017		8			6,121		8			6,179		8			6,170		8
Restricted commercial mortgage loans related to securitization entities			129		—			134		—			141		—			155		—			161		—
Policy loans			1,742		2			1,751		2			1,754		2			1,565		2			1,568		2
Cash, cash equivalents and short-term investments			3,136		4			3,420		4			3,730		5			4,217		6			6,162		8
Securities lending			534		1			417		1			328		—			415		1			347		—
Other invested assets:	Limited partnerships		199		—			188		—			181		—			177		—			188		—
	Derivatives:
	Long-term care (LTC) forward starting swap—cash flow		237		—			735		1			627		1			1,087		1			629		1
	Other cash flow		4		—			6		—			7		—			7		—			8		—
	Equity index options—non-qualified		72		—			61		—			57		—			36		—			30		—
	Other non-qualified		395		1			529		1			578		1			537		1			445		1
	Trading portfolio		259		1			384		1			441		1			471		1			447		1
	Restricted other invested assets related to securitization entities		312		—			312		—			312		—			422		1			413		1
	Other		19		—			14		—			18		—			19		—			18		—

Total invested assets and cash		$	74,353		100	%	$	78,338		100	%	$	77,604		100	%	$	76,008		100	%	$	75,093		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾Designation
AAA		$	14,264		32	%	$	15,608		33	%	$	15,714		33	%	$	15,385		34	%	$	14,785		34	%
AA			4,283		9			4,536		9			4,455		10			4,174		10			4,121		10
A			12,659		28			13,317		28			13,122		28			12,664		28			12,155		28
BBB			12,380		28			12,632		27			12,154		26			11,213		25			10,720		25
BB			1,334		3			1,464		3			1,440		3			1,464		3			1,200		3
B			151		—			145		—			149		—			141		—			63		—
CCC and lower			60		—			53		—			56		—			77		—			92		—

Total public fixed maturity securities		$	45,131		100	%	$	47,755		100	%	$	47,090		100	%	$	45,118		100	%	$	43,136		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾Designation
AAA		$	1,661		11	%	$	1,731		11	%	$	1,683		10	%	$	1,614		10	%	$	1,531		10	%
AA			1,970		13			2,071		13			2,013		13			1,923		13			1,899		13
A			4,719		30			4,937		31			4,864		31			4,725		31			4,731		31
BBB			6,265		41			6,404		40			6,319		40			6,009		40			6,003		40
BB			763		5			815		5			734		5			772		5			777		5
B			51		—			51		—			102		1			104		1			104		1
CCC and lower			12		—			16		—			23		—			25		—			16		—

Total private fixed maturity securities		$	15,441		100	%	$	16,025		100	%	$	15,738		100	%	$	15,172		100	%	$	15,061		100	%

⁽¹⁾	The company does not have any material exposure to residential mortgage-backed securities collateralized debt obligations (CDOs).

⁽²⁾	Nationally Recognized Statistical Rating Organizations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Fixed Maturity Securities Summary

(amounts in millions)


	December 31, 2016					September 30, 2016					June 30, 2016					March 31, 2016					December 31, 2015
	Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total
Fixed Maturity Securities—Security Sector:
U.S. government, agencies and government-sponsored enterprises	$	6,036		10	%	$	6,703		11	%	$	6,806		11	%	$	6,524		11	%	$	6,203		11	%
State and political subdivisions		2,647		4			2,824		4			2,751		4			2,517		4			2,438		4
Foreign government		2,107		3			2,227		3			2,113		3			2,080		3			2,015		3
U.S. corporate		26,828		45			27,695		44			26,984		43			25,389		43			24,401		42
Foreign corporate		12,295		21			13,008		20			12,833		21			12,629		21			12,199		21
Residential mortgage-backed securities		4,379		7			4,823		8			5,055		8			5,122		8			5,101		9
Commercial mortgage-backed securities		3,129		5			3,173		5			2,979		5			2,713		4			2,559		4
Other asset-backed securities		3,151		5			3,327		5			3,307		5			3,316		6			3,281		6

Total fixed maturity securities	$	60,572		100	%	$	63,780		100	%	$	62,828		100	%	$	60,290		100	%	$	58,197		100	%

Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	8,408		23	%	$	8,756		23	%	$	8,499		23	%	$	8,128		23	%	$	7,746		22	%
Utilities		5,475		15			5,637		15			5,507		15			5,275		15			4,453		13
Energy		2,944		8			2,961		8			2,949		8			2,908		8			3,839		11
Consumer—non-cyclical		5,268		14			5,483		14			5,292		14			4,894		14			4,619		13
Consumer—cyclical		1,853		5			2,034		5			2,039		5			2,150		6			2,119		6
Capital goods		2,665		7			2,623		7			2,613		7			2,444		7			2,361		7
Industrial		1,908		5			2,006		5			1,971		5			1,980		5			1,915		6
Technology and communications		3,220		9			3,418		9			3,272		9			3,019		8			2,872		8
Transportation		1,839		5			1,868		5			1,860		5			1,750		5			1,689		5
Other		3,406		9			3,605		9			3,538		9			3,162		9			3,049		9

Subtotal		36,986		100	%		38,391		100	%		37,540		100	%		35,710		100	%		34,662		100	%

Non-Investment Grade:
Finance and insurance		227		11	%		242		11	%		285		13	%		306		13	%		359		19	%
Utilities		44		2			73		3			74		3			78		4			83		4
Energy		687		32			713		31			679		30			693		30			348		18
Consumer—non-cyclical		180		8			217		9			217		9			226		10			229		12
Consumer—cyclical		119		6			131		6			131		6			86		4			82		4
Capital goods		128		6			152		7			153		7			216		9			193		10
Industrial		273		13			303		13			263		11			279		12			244		13
Technology and communications		365		17			355		15			335		15			320		14			309		16
Transportation		28		1			30		1			30		1			2		—			2		—
Other		86		4			96		4			110		5			102		4			89		4

Subtotal		2,137		100	%		2,312		100	%		2,277		100	%		2,308		100	%		1,938		100	%

Total	$	39,123		100	%	$	40,703		100	%	$	39,817		100	%	$	38,018		100	%	$	36,600		100	%

Fixed Maturity Securities—Contractual Maturity Dates:
Due in one year or less	$	1,721		3	%	$	1,775		3	%	$	1,851		3	%	$	1,879		3	%	$	1,744		3	%
Due after one year through five years		10,938		18			11,309		18			11,024		18			10,730		18			10,192		18
Due after five years through ten years		12,647		21			13,129		20			12,708		20			11,964		20			11,917		20
Due after ten years		24,607		41			26,244		41			25,904		41			24,566		41			23,403		40

Subtotal		49,913		83			52,457		82			51,487		82			49,139		82			47,256		81
Mortgage and asset-backed securities		10,659		17			11,323		18			11,341		18			11,151		18			10,941		19

Total fixed maturity securities	$	60,572		100	%	$	63,780		100	%	$	62,828		100	%	$	60,290		100	%	$	58,197		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

General Account GAAP Net Investment Income Yields

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
GAAP Net Investment Income
Fixed maturity securities—taxable	$	635		$	655		$	634		$	641		$	2,565		$	634		$	647		$	645		$	632		$	2,558
Fixed maturity securities—non-taxable		3			3			3			3			12			3			3			3			3			12
Commercial mortgage loans		81			79			77			81			318			85			84			83			85			337
Restricted commercial mortgage loans related to securitization entities		2			3			3			2			10			4			3			3			4			14
Equity securities		8			8			7			5			28			4			3			4			4			15
Other invested assets		34			29			33			32			128			30			22			17			33			102
Limited partnerships		2			5			—			6			13			2			4			20			7			33
Restricted other invested assets related to securitization entities		—			—			1			2			3			2			1			1			1			5
Policy loans		39			38			34			35			146			36			33			35			33			137
Cash, cash equivalents and short-term investments		4			5			6			5			20			3			3			4			3			13

Gross investment income before expenses and fees		808			825			798			812			3,243			803			803			815			805			3,226
Expenses and fees		(22	)		(20	)		(19	)		(23	)		(84	)		(22	)		(20	)		(22	)		(24	)		(88	)

Net investment income	$	786		$	805		$	779		$	789		$	3,159		$	781		$	783		$	793		$	781		$	3,138

Annualized Yields
Fixed maturity securities—taxable		4.5	%		4.6	%		4.6	%		4.7	%		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%
Fixed maturity securities—non-taxable		3.7	%		3.7	%		3.6	%		3.6	%		3.6	%		3.5	%		3.5	%		3.5	%		3.5	%		3.5	%
Commercial mortgage loans		5.3	%		5.2	%		5.0	%		5.2	%		5.2	%		5.5	%		5.5	%		5.4	%		5.6	%		5.5	%
Restricted commercial mortgage loans related to securitization entities		6.1	%		7.4	%		8.0	%		5.1	%		7.1	%		9.5	%		6.4	%		7.2	%		8.2	%		8.0	%
Equity securities		5.2	%		5.8	%		5.8	%		5.1	%		5.6	%		5.1	%		4.0	%		5.6	%		6.1	%		5.2	%
Other invested assets		46.2	%		31.6	%		31.9	%		29.4	%		34.5	%		27.4	%		22.2	%		24.2	%		60.6	%		30.7	%
Limited partnerships⁽¹⁾		4.1	%		10.9	%		—	%		13.2	%		7.0	%		4.2	%		7.8	%		37.0	%		12.0	%		15.5	%
Restricted other invested assets related to securitization entities		—	%		—	%		1.1	%		2.0	%		0.9	%		2.0	%		1.0	%		1.0	%		1.0	%		1.3	%
Policy loans		8.9	%		8.7	%		8.2	%		8.9	%		8.7	%		9.2	%		8.4	%		9.1	%		8.8	%		8.9	%
Cash, cash equivalents and short-term investments		0.5	%		0.6	%		0.6	%		0.4	%		0.5	%		0.2	%		0.3	%		0.3	%		0.2	%		0.3	%

Gross investment income before expenses and fees		4.6	%		4.7	%		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%
Expenses and fees		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%

Net investment income		4.5	%		4.6	%		4.5	%		4.5	%		4.5	%		4.5	%		4.5	%		4.5	%		4.5	%		4.5	%

Yields are based on net investment income as reported under GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity and equity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability. See page 49 herein for average invested assets and cash used in the yield calculation.

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Net Investment Gains (Losses), Net—Detail

(amounts in millions)


	2016															2015
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	(1	)	$	2		$	—		$	(7	)	$	(6	)	$	12		$	(3	)	$	—		$	—		$	9
U.S. government, agencies and government-sponsored enterprises		(19	)		15			137			7			140			3			—			—			1			4
Foreign corporate		1			(1	)		(6	)		(8	)		(14	)		(6	)		(1	)		(2	)		(7	)		(16	)
Foreign government		1			4			—			—			5			(2	)		—			1			1			—
Tax-exempt		—			—			—			—			—			(1	)		—			—			—			(1	)
Mortgage-backed securities		13			(1	)		—			—			12			—			(3	)		2			—			(1	)
Asset-backed securities		(1	)		(5	)		(10	)		—			(16	)		(2	)		(2	)		—			—			(4	)
Equity securities		2			1			—			1			4			1			3			12			7			23
Foreign exchange		2			—			1			—			3			2			2			1			1			6

Total net realized gains (losses) on available-for-sale securities		(2	)		15			122			(7	)		128			7			(4	)		14			3			20

Impairments:
Corporate fixed maturity securities		—			—			(16	)		(8	)		(24	)		(15	)		(6	)		—			—			(21	)
Foreign government		—			—			(1	)		—			(1	)		—			—			—			—			—
Limited partnerships		—			—			—			(3	)		(3	)		—			—			—			—			—
Commercial mortgage loans		—			—			(4	)		—			(4	)		—			(1	)		—			(3	)		(4	)
Commercial mortgage-backed securities		—			—			(1	)		—			(1	)		—			—			—			—			—
Other asset-backed securities		—			—			—			—			—			—			(2	)		—			—			(2	)
Equity securities		(5	)		(2	)		—			—			(7	)		—			—			—			—			—

Total impairments		(5	)		(2	)		(22	)		(11	)		(40	)		(15	)		(9	)		—			(3	)		(27	)

Net unrealized gains (losses) on trading securities		(30	)		(4	)		16			28			10			(9	)		12			(16	)		6			(7	)
Limited partnerships		6			—			—			—			6			—			—			—			—			—
Commercial mortgage loans held-for-sale market valuation allowance		—			(1	)		1			1			1			2			1			2			2			7
Net gains (losses) related to securitization entities		1			2			(61	)		8			(50	)		(4	)		(1	)		2			8			5
Derivative instruments		72			10			(24	)		(38	)		20			3			(53	)		6			(32	)		(76	)
Contingent purchase price valuation change		—			—			(2	)		—			(2	)		—			2			—			—			2
Other		(1	)		—			—			—			(1	)		—			1			—			—			1

Net investment gains (losses), gross		41			20			30			(19	)		72			(16	)		(51	)		8			(16	)		(75	)
Adjustment for DAC and other intangible amortization and certain benefit reserves		(1	)		—			6			9			14			11			10			6			8			35
Adjustment for net investment (gains) losses attributable to noncontrolling interests		(12	)		(2	)		3			(9	)		(20	)		4			8			(9	)		7			10

Net investment gains (losses), net	$	28		$	18		$	39		$	(19	)	$	66		$	(1	)	$	(33	)	$	5		$	(1	)	$	(30	)

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	(277	)	$	(447	)	$	(351	)	$	(716	)	$	(615	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	9,790		$	9,900		$	10,042		$	10,160		$	10,281
GAAP Basis ROE^(1)/(2)		-2.8	%		-4.5	%		-3.5	%		-7.0	%		-6.0	%

Operating ROE
Adjusted operating income (loss) for the twelve months ended⁽¹⁾	$	(316	)	$	(261	)	$	208		$	204		$	255
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	9,790		$	9,900		$	10,042		$	10,160		$	10,281
Operating ROE^(1)/(2)		-3.2	%		-2.6	%		2.1	%		2.0	%		2.5	%

Quarterly Average ROE	Three months ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	(122	)	$	(380	)	$	172		$	53		$	(292	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	9,610		$	9,857		$	9,958		$	9,842		$	9,958
Annualized GAAP Quarterly Basis ROE^(3)/(4)		-5.1	%		-15.4	%		6.9	%		2.2	%		-11.7	%

Operating ROE
Adjusted operating income (loss) for the period ended⁽³⁾	$	(137	)	$	(405	)	$	123		$	103		$	(82	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	9,610		$	9,857		$	9,958		$	9,842		$	9,958
Annualized Operating Quarterly Basis ROE^(3)/(4)		-5.7	%		-16.4	%		4.9	%		4.2	%		-3.3	%

Non-GAAP Definition for Operating ROE

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

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

⁽²⁾	Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (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 other comprehensive income (loss), is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss).

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Reconciliation of Core Yield


		2016															2015
	(Assets—amounts in billions)	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	74.4		$	78.3		$	77.6		$	76.0		$	74.4		$	75.1		$	75.6		$	75.3		$	77.9		$	75.1
	Subtract:
	Securities lending		0.5			0.4			0.3			0.4			0.5			0.3			0.4			0.3			0.3			0.3
	Unrealized gains (losses)		4.3			7.7			7.6			6.3			4.3			4.2			5.4			4.9			7.8			4.2

	Adjusted end of period invested assets and cash	$	69.6		$	70.2		$	69.7		$	69.3		$	69.6		$	70.6		$	69.8		$	70.1		$	69.8		$	70.6

(A)	Average Invested Assets and Cash Used in Reported Yield Calculation	$	69.8		$	69.7		$	69.5		$	70.0		$	69.8		$	70.2		$	70.0		$	70.0		$	69.7		$	70.0
	Subtract:
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		0.1			0.3			0.1			0.2			0.2			0.2			0.2			0.2			0.2			0.2

(B)	Average Invested Assets and Cash Used in Core Yield Calculation	$	69.7		$	69.4		$	69.4		$	69.8		$	69.6		$	70.0		$	69.8		$	69.8		$	69.5		$	69.8


	(Income—amounts in millions)

(C)	Reported—Net Investment Income	$	786		$	805		$	779		$	789		$	3,159		$	781		$	783		$	793		$	781		$	3,138
	Subtract:
	Bond calls and commercial mortgage loan prepayments		22			14			5			11			52			18			12			17			14			61
	Other non-core items⁽²⁾		(17	)		8			(6	)		15			—			(2	)		1			(4	)		7			2
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		2			1			2			3			8			3			2			2			3			10

(D)	Core Net Investment Income	$	779		$	782		$	778		$	760		$	3,099		$	762		$	768		$	778		$	757		$	3,065


(C) / (A)	Reported Yield		4.50	%		4.62	%		4.48	%		4.51	%		4.53	%		4.45	%		4.47	%		4.53	%		4.48	%		4.48	%
(D) / (B)	Core Yield		4.47	%		4.51	%		4.48	%		4.36	%		4.45	%		4.35	%		4.40	%		4.46	%		4.36	%		4.39	%

Notes:

Columns may not add due to rounding.

Yields have been annualized.

Non-GAAP Definition for Core Yield

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

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

⁽²⁾	Includes cost basis adjustments on structured securities and various other immaterial items.

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

Financial Strength Ratings As Of February 6, 2017


Company	Standard & Poor’s Financial Services LLC (S&P)	Moody’s Investors Service, Inc. (Moody’s)	A.M. Best Company, Inc. (A.M. Best)
Genworth Mortgage Insurance Corporation	BB+ (Marginal)	Ba1 (Questionable)	Not rated
Genworth Financial Mortgage Insurance Company Canada⁽¹⁾	A+ (Strong)	Not rated	Not rated
Genworth Financial Mortgage Insurance Pty Limited (Australia)⁽²⁾	A+ (Strong)	A3 (Good)	Not rated
Genworth Life Insurance Company	BB- (Marginal)	Ba2 (Questionable)	B (Fair)
Genworth Life and Annuity Insurance Company	BB- (Marginal)	Baa2 (Adequate)	B++ (Good)
Genworth Life Insurance Company of New York	BB- (Marginal)	Ba2 (Questionable)	B (Fair)

The S&P, Moody’s, A.M. Best, Dominion Bond Rating Service (DBRS) and Fitch Rating Service (Fitch) ratings included are not designed to be, and do not serve as, measures of protection or valuation offered to investors. These financial strength ratings should not be relied on with respect to making an investment in the company’s securities.

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

Moody’s states that insurance companies rated “A” (Good) offer good financial security, that insurance companies rated “Baa” (Adequate) offer adequate financial security and that insurance companies rated “Ba” (Questionable) offer questionable financial security. The “A” (Good), “Baa” (Adequate) and “Ba” (Questionable) ranges are the third-, fourth- and fifth-highest, respectively, of nine financial strength rating ranges assigned by Moody’s, which range from “Aaa” to “C.” Numeric modifiers are used to refer to the ranking within the group, with 1 being the highest and 3 being the lowest. These modifiers are not added to ratings in the “Aaa” category or to ratings below the “Caa” category. Accordingly, the “A3,” “Baa2,” “Ba1” and “Ba2” ratings are the seventh-, ninth-, eleventh- and twelfth-highest, respectively, of Moody’s 21 ratings categories.

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

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

The Australian mortgage insurance subsidiary also solicits a rating from Fitch. Fitch states that “A” (Strong) rated insurance companies are viewed as possessing strong capacity to meet policyholder and contract obligations. The “A” rating category is the third-highest of nine 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 “B” category. Accordingly, the “A+” rating is the fifth-highest of Fitch’s 21 ratings categories.

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

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

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

⁽²⁾	Genworth Financial Mortgage Insurance Pty Limited (Australia) is also rated “A+” by Fitch.