Assets

Investments:

Fixed maturity securities available-for-sale, at fair value

Equity securities, at fair value

Commercial mortgage loans ($53 are restricted related to a securitization entity)

Policy loans

Other invested assets

Total investments

Cash, cash equivalents and restricted cash

Accrued investment income

Deferred acquisition costs

Intangible assets and goodwill

Reinsurance recoverable

Other assets

Deferred tax asset

Separate account assets

Assets held for sale related to discontinued operations

Total assets

Liabilities and equity

Liabilities:

Future policy benefits

Policyholder account balances

Liability for policy and contract claims

Unearned premiums

Other liabilities

Non-recourse funding obligations

Long-term borrowings

Separate account liabilities

Liabilities held for sale related to discontinued operations

Total liabilities

Commitments and contingencies

Equity:

Class A common stock, $0.001 par value; 1.5 billion shares authorized; 592 million shares issued; 504 million shares outstanding

Additional paid-in capital

Accumulated other comprehensive income (loss):

Net unrealized investment gains (losses):

Net unrealized gains (losses) on securities not other-than-temporarily impaired

Net unrealized gains (losses) on other-than-temporarily impaired securities

Net unrealized investment gains (losses)

Derivatives qualifying as hedges

Foreign currency translation and other adjustments

Total accumulated other comprehensive income (loss)

Retained earnings

Treasury stock, at cost (88 million shares)

Total Genworth Financial, Inc.’s stockholders’ equity

Noncontrolling interests

Total equity

Total liabilities and equity

Adjustment reflects the net proceeds received in connection with the Sale. Proceeds are net of expenses related to the Sale, including transaction related closing costs. The Company assumed these expenses were paid on September 30, 2019.

Adjustments reflect the disposition of the assets and liabilities of the Sale Company previously presented as assets and liabilities held for sale related to discontinued operations. Adjustments also reflect the de-recognition of cumulative net unrealized investment gains and cumulative losses from currency translation adjustments included in other comprehensive income (loss) of the Sale Company, and the deconsolidation of the ownership interest attributable to noncontrolling interests of the Sale Company.

Included in the adjustment of the disposition of the assets of the Sale Company was an after-tax impairment loss of $164 million recognized in the Company’s third quarter report filed on Form 10-Q. This loss has not been reflected in the pro forma condensed consolidated statements of income as it is considered to be nonrecurring in nature.

Revenues:

Premiums

Net investment income

Net investment gains (losses)

Policy fees and other income

Total revenues

Benefits and expenses:

Benefits and other changes in policy reserves

Interest credited

Acquisition and operating expenses, net of deferrals

Amortization of deferred acquisition costs and intangibles

Interest expense

Total benefits and expenses

Income from continuing operations before income taxes

Provision for income taxes

Income from continuing operations

Income from discontinued operations, net of taxes

Net income

Less: net income attributable to noncontrolling interests

Net income (loss) available to Genworth Financial, Inc.’s common stockholders

Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted

Revenues:

Premiums

Net investment income

Net investment gains (losses)

Policy fees and other income

Total revenues

Benefits and expenses:

Benefits and other changes in policy reserves

Interest credited

Acquisition and operating expenses, net of deferrals

Amortization of deferred acquisition costs and intangibles

Interest expense

Total benefits and expenses

Income from continuing operations before income taxes

Benefit for income taxes

Income from continuing operations

Loss from discontinued operations, net of taxes

Net income

Less: net income (loss) attributable to noncontrolling interests

Net income available to Genworth Financial, Inc.’s common stockholders

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Net income available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted

Revenues:

Premiums

Net investment income

Net investment gains (losses)

Policy fees and other income

Total revenues

Benefits and expenses:

Benefits and other changes in policy reserves

Interest credited

Acquisition and operating expenses, net of deferrals

Amortization of deferred acquisition costs and intangibles

Interest expense

Total benefits and expenses

Income (loss) from continuing operations before income taxes

Provision for income taxes

Loss from continuing operations

Loss from discontinued operations, net of taxes

Net loss

Less: net income attributable to noncontrolling interests

Net loss available to Genworth Financial, Inc.’s common stockholders

Loss from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Net loss available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted

Adjustments reflect the elimination of revenues and expenses of the Sale Company, including operations attributable to noncontrolling interests, from the Company’s historical results as if the Sale occurred on January 1, 2016.

Interest on debt that will be assumed by Brookfield Business Partners L.P. of $18 million in each year and interest on debt required to be repaid as a result of the Sale of $25 million in 2018, was removed from the historical amounts.

Adjustment represents the income tax effect of the elimination of the revenue and expenses of the Sale Company. The tax effect was calculated using the historical statutory rates in effect for the periods presented.

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 elimination of revenues and expenses of the Sale Company and the resulting pro forma loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the year ended December 31, 2018, the Company used 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 3.8 million would have been antidilutive to the calculation.