EX-99.2

Exhibit 99.2

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020


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		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—Australia Mortgage Insurance Segment		24-27
Adjusted Operating Income (Loss)—U.S. Life Insurance Segment		29-32
Adjusted Operating Income (Loss)—Runoff Segment		34
Adjusted Operating Loss—Corporate and Other Activities		36

*Additional Financial Data*
Investments Summary		38
Fixed Maturity Securities Summary		39
General Account U.S. GAAP Net Investment Income Yields		40
Net Investment Gains (Losses), Net—Detail		41

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		43
Reconciliation of Reported Yield to Core Yield		44

*Corporate Information*
Financial Strength Ratings		46

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), adjusted operating income (loss) per share, book value and book value per share should be read as income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders, income (loss) from continuing operations available 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 (U.S. GAAP) adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, non-GAAP adjusted operating income (loss) available to Genworth Financial, Inc.’s 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

FIRST QUARTER 2020

Dear Investor,

Thank you for your continued interest in Genworth Financial, Inc.

Regards,

Investor Relations

InvestorInfo@genworth.com

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Use of Non-GAAP Measures

This financial supplement includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). 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 (loss) from continuing operations 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 estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. 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 U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth Financial, Inc.’s common stockholders or net income (loss) available to Genworth Financial, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate for the company’s domestic segments and a 30% tax rate for its Australia Mortgage Insurance segment 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 41).

In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings, Inc.’s (Genworth Holdings) senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, the company’s indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. The company also repurchased $14 million principal amount of Genworth Holdings’ senior notes with 2021 maturity dates for a pre-tax gain of $1 million in the first quarter of 2020. These transactions were excluded from adjusted operating income (loss) as they relate to gains (losses) on the early extinguishment of debt.

The company recorded a pre-tax expense of $1 million and $4 million in the first quarters of 2020 and 2019, respectively, related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.

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 for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. This financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 43 and 44 of this financial supplement.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

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 for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.

The company taxes its international businesses at their local jurisdictional tax rates and its domestic businesses at the U.S. corporate federal income tax rate of 21%. The company’s segment tax methodology applies the respective jurisdictional or domestic tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign withholding taxes and permanent differences between U.S. GAAP and local tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.

The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.

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 business generated in a period. Sales refer to new insurance written for mortgage insurance products. The company considers new insurance written to be a measure of the company’s operating performance because it represents a measure of new sales of insurance policies 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 company’s 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 company’s U.S. mortgage insurance business is based on the coverage percentage applied to the estimated current outstanding loan balance. Risk in-force in the Australia mortgage insurance business is computed using 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 business in Australia. The company also has certain risk share arrangements in Australia 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 its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.

Management also regularly monitors and reports a loss ratio for the company’s businesses. For the mortgage insurance businesses, the loss ratio is the ratio of benefits and other changes in policy reserves 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

FIRST QUARTER 2020

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	10,634		$	10,752		$	10,765		$	10,744		$	10,582
Total accumulated other comprehensive income		3,815			3,433			3,622			3,013			2,492

Total Genworth Financial, Inc.’s stockholders’ equity	$	14,449		$	14,185		$	14,387		$	13,757		$	13,074

Book value per share	$	28.61		$	28.17		$	28.57		$	27.32		$	25.98
Book value per share, excluding accumulated other comprehensive income	$	21.05		$	21.35		$	21.38		$	21.34		$	21.03
Common shares outstanding as of the balance sheet date		505.1			503.5			503.5			503.5			503.3

	Twelve months ended
Twelve Month Rolling Average ROE	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
U.S. GAAP Basis ROE		1.0	%		3.2	%		0.3	%		1.5	%		1.7	%
Operating ROE⁽¹⁾		3.3	%		3.9	%		0.9	%		0.6	%		0.2	%

	Three months ended
Quarterly Average ROE	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
U.S. GAAP Basis ROE		(2.5	)%		(0.6	)%		0.7	%		6.3	%		6.6	%
Operating ROE⁽¹⁾		1.2	%		0.9	%		4.6	%		6.7	%		3.6	%


Basic and Diluted Shares	Three months ended March 31, 2020
Weighted-average common shares used in basic earnings per share calculations		504.3
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		—

Weighted-average common shares used in diluted earnings per share calculations⁽²⁾		504.3

⁽¹⁾	See page 43 herein for a reconciliation of U.S. 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 months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.

Consolidated Quarterly Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


	2020			2019
	1Q			4Q			3Q			2Q			1Q		Total
REVENUES:
Premiums	$	1,015		$	1,033		$	1,015		$	1,001		$	988	$	4,037
Net investment income		793			794			816			816			794		3,220
Net investment gains (losses)		(152	)		23			(2	)		(46	)		75		50
Policy fees and other income		181			188			191			223			187		789

Total revenues		1,837			2,038			2,020			1,994			2,044		8,096

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,361			1,346			1,284			1,251			1,282		5,163
Interest credited		141			138			146			146			147		577
Acquisition and operating expenses, net of deferrals		249			249			247			229			237		962
Amortization of deferred acquisition costs and intangibles		116			164			112			84			81		441
Interest expense		52			60			59			60			60		239

Total benefits and expenses		1,919			1,957			1,848			1,770			1,807		7,382

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(82	)		81			172			224			237		714
Provision (benefit) for income taxes		(10	)		26			34			66			69		195

INCOME (LOSS) FROM CONTINUING OPERATIONS		(72	)		55			138			158			168		519
Income (loss) from discontinued operations, net of taxes⁽¹⁾		—			(31	)		(80	)		60			62		11

NET INCOME (LOSS)		(72	)		24			58			218			230		530
Less: net income (loss) from continuing operations attributable to noncontrolling interests		(6	)		19			10			15			20		64
Less: net income from discontinued operations attributable to noncontrolling interests		—			22			30			35			36		123

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	(66	)	$	(17	)	$	18		$	168		$	174	$	343

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	(66	)	$	36		$	128		$	143		$	148	$	455
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders		—			(53	)		(110	)		25			26		(112	)

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	(66	)	$	(17	)	$	18		$	168		$	174	$	343


Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	(0.13	)	$	0.07		$	0.25		$	0.29		$	0.29	$	0.90
Diluted	$	(0.13	)	$	0.07		$	0.25		$	0.28		$	0.29	$	0.89
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	(0.13	)	$	(0.03	)	$	0.04		$	0.33		$	0.35	$	0.68
Diluted	$	(0.13	)	$	(0.03	)	$	0.04		$	0.33		$	0.34	$	0.67
Weighted-average common shares outstanding
Basic		504.3			503.5			503.5			503.4			501.2		502.9
Diluted⁽²⁾		504.3			510.4			511.2			508.7			508.6		509.7

⁽¹⁾

Income (loss) from discontinued operations related to the Canada mortgage insurance business that was sold on December 12, 2019 and the lifestyle protection insurance business that was sold on December 1, 2015. During the fourth quarter of 2019, the company recorded an after-tax loss of $110 million in connection with pending litigation involving two insurance companies that were part of the sale of the lifestyle protection insurance business.

⁽²⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Reconciliation of Net Income (Loss) to Adjusted Operating Income

(amounts in millions, except per share amounts)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	(66	)	$	(17	)	$	18		$	168		$	174		$	343
Add: net income (loss) from continuing operations attributable to noncontrolling interests		(6	)		19			10			15			20			64
Add: net income from discontinued operations attributable to noncontrolling interests		—			22			30			35			36			123

NET INCOME (LOSS)		(72	)		24			58			218			230			530
Less: income (loss) from discontinued operations, net of taxes		—			(31	)		(80	)		60			62			11

INCOME (LOSS) FROM CONTINUING OPERATIONS		(72	)		55			138			158			168			519
Less: net income (loss) from continuing operations attributable to noncontrolling interests		(6	)		19			10			15			20			64

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(66	)		36			128			143			148			455

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net⁽¹⁾		115			(17	)		(5	)		43			(71	)		(50	)
Losses on early extinguishment of debt		12			—			—			—			—			—
Expenses related to restructuring		1			—			—			—			4			4
Taxes on adjustments		(29	)		5			—			(8	)		14			11

ADJUSTED OPERATING INCOME	$	33		$	24		$	123		$	178		$	95		$	420

ADJUSTED OPERATING INCOME (LOSS):
U.S. Mortgage Insurance segment	$	148		$	160		$	137		$	147		$	124		$	568
Australia Mortgage Insurance segment		9			12			12			13			14			51
U.S. Life Insurance segment:
Long-Term Care Insurance		1			19			21			37			(20	)		57
Life Insurance		(77	)		(164	)		(25	)		10			(2	)		(181	)
Fixed Annuities		6			30			3			19			17			69

Total U.S. Life Insurance segment		(70	)		(115	)		(1	)		66			(5	)		(55	)

Runoff segment		(13	)		17			10			9			20			56
Corporate and Other		(41	)		(50	)		(35	)		(57	)		(58	)		(200	)

ADJUSTED OPERATING INCOME	$	33		$	24		$	123		$	178		$	95		$	420


Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	(0.13	)	$	(0.03	)	$	0.04		$	0.33		$	0.35		$	0.68
Diluted	$	(0.13	)	$	(0.03	)	$	0.04		$	0.33		$	0.34		$	0.67
Adjusted operating income per share
Basic	$	0.07		$	0.05		$	0.25		$	0.35		$	0.19		$	0.84
Diluted	$	0.07		$	0.05		$	0.24		$	0.35		$	0.19		$	0.82
Weighted-average common shares outstanding
Basic		504.3			503.5			503.5			503.4			501.2			502.9
Diluted⁽²⁾		504.3			510.4			511.2			508.7			508.6			509.7

⁽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 41 for reconciliation).

⁽²⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value (amortized cost of $54,136 and allowance for credit losses of $— of March 31, 2020)	$	59,051		$	60,339		$	61,233		$	59,491		$	57,153
Equity securities, at fair value		188			239			239			262			251
Commercial mortgage loans⁽¹⁾		6,944			6,976			7,045			7,030			6,998
Less: Allowance for credit losses		(29	)		(13	)		(12	)		(11	)		(10	)

Commercial mortgage loans, net		6,915			6,963			7,033			7,019			6,988
Policy loans		2,052			2,058			2,069			2,076			1,994
Other invested assets		2,465			1,632			1,693			1,396			1,106

Total investments		70,671			71,231			72,267			70,244			67,492
Cash, cash equivalents and restricted cash		2,483			3,341			1,629			1,715			2,020
Accrued investment income		707			654			643			595			685
Deferred acquisition costs		1,898			1,836			1,881			1,980			2,097
Intangible assets and goodwill		263			201			210			229			250
Reinsurance recoverable		17,122			17,103			17,180			17,211			17,257
Less: Allowance for credit losses		(42	)		—			—			—			—

Reinsurance recoverable, net		17,080			17,103			17,180			17,211			17,257
Other assets		456			443			479			516			467
Deferred tax asset		319			425			236			383			573
Separate account assets		4,967			6,108			6,005			6,187			6,210
Assets held for sale related to discontinued operations⁽²⁾		—			—			5,123			5,246			5,137

Total assets	$	98,844		$	101,342		$	105,653		$	104,306		$	102,188

⁽¹⁾	Net of unamortized balance of loan origination fees and costs of $4 million as of March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019.

⁽²⁾	Prior to the sale on December 12, 2019, the assets for the Canada mortgage insurance business were held for sale related to discontinued operations and segregated in the consolidated balance sheets.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	39,339		$	40,384		$	40,489		$	39,583		$	38,369
Policyholder account balances		22,313			22,217			22,607			22,673			22,651
Liability for policy and contract claims		11,132			10,958			10,780			10,586			10,448
Unearned premiums		1,722			1,893			1,863			1,917			1,964
Other liabilities		1,686			1,562			1,445			1,604			1,564
Non-recourse funding obligations		—			311			311			311			311
Long-term borrowings		2,851			3,277			3,706			3,711			3,711
Separate account liabilities		4,967			6,108			6,005			6,187			6,210
Liabilities held for sale related to discontinued operations⁽¹⁾		—			—			2,302			2,142			2,078

Total liabilities		84,010			86,710			89,508			88,714			87,306

Equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,993			11,990			11,986			11,983			11,989
Accumulated other comprehensive income (loss)		3,815			3,433			3,622			3,013			2,492
Retained earnings		1,340			1,461			1,478			1,460			1,292
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		14,449			14,185			14,387			13,757			13,074
Noncontrolling interests		385			447			1,758			1,835			1,808

Total equity		14,834			14,632			16,145			15,592			14,882

Total liabilities and equity	$	98,844		$	101,342		$	105,653		$	104,306		$	102,188

⁽¹⁾	Prior to the sale on December 12, 2019, the liabilities for the Canada mortgage insurance business were held for sale related to discontinued operations and segregated in the consolidated balance sheets.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Consolidated Balance Sheet by Segment

(amounts in millions)


	March 31, 2020
	U.S. Mortgage Insurance			Australia Mortgage Insurance			U.S. Life Insurance			Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	4,385		$	1,915		$	62,482		$	3,634		$	1,445		$	73,861
Deferred acquisition costs and intangible assets		48			81			1,855			166			11			2,161
Reinsurance recoverable, net		—			4			16,322			754			—			17,080
Deferred tax and other assets		109			146			(95	)		(19	)		634			775
Separate account assets		—			—			—			4,967			—			4,967

Total assets	$	4,542		$	2,146		$	80,564		$	9,502		$	2,090		$	98,844

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—		$	—		$	39,337		$	2		$	—		$	39,339
Policyholder account balances		—			—			18,684			3,629			—			22,313
Liability for policy and contract claims		230			184			10,702			10			6			11,132
Unearned premiums		366			876			476			4			—			1,722
Other liabilities		71			203			733			43			636			1,686
Borrowings		—			122			—			—			2,729			2,851
Separate account liabilities		—			—			—			4,967			—			4,967

Total liabilities		667			1,385			69,932			8,655			3,371			84,010

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,891			395			6,643			850			(1,145	)		10,634
Allocated accumulated other comprehensive income (loss)		(16	)		(19	)		3,989			(3	)		(136	)		3,815

Total Genworth Financial, Inc.’s stockholders’ equity		3,875			376			10,632			847			(1,281	)		14,449
Noncontrolling interests		—			385			—			—			—			385

Total equity		3,875			761			10,632			847			(1,281	)		14,834

Total liabilities and equity	$	4,542		$	2,146		$	80,564		$	9,502		$	2,090		$	98,844

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Consolidated Balance Sheet by Segment

(amounts in millions)


	December 31, 2019
	U.S. Mortgage Insurance		Australia Mortgage Insurance		U.S. Life Insurance		Runoff		Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	4,373	$	2,212	$	63,453	$	2,927	$	2,261		$	75,226
Deferred acquisition costs and intangible assets		49		53		1,757		168		10			2,037
Reinsurance recoverable		—		—		16,386		717		—			17,103
Deferred tax and other assets		82		141		44		33		568			868
Separate account assets		—		—		—		6,108		—			6,108

Total assets	$	4,504	$	2,406	$	81,640	$	9,953	$	2,839		$	101,342

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	—	$	40,382	$	2	$	—		$	40,384
Policyholder account balances		—		—		19,006		3,211		—			22,217
Liability for policy and contract claims		233		208		10,500		9		8			10,958
Unearned premiums		384		1,008		498		3		—			1,893
Non-recourse funding obligations		—		—		311		—		—			311
Other liabilities		90		161		520		46		745			1,562
Borrowings		—		140		—		—		3,137			3,277
Separate account liabilities		—		—		—		6,108		—			6,108

Total liabilities		707		1,517		71,217		9,379		3,890			86,710

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,702		409		7,111		559		(1,029	)		10,752
Allocated accumulated other comprehensive income (loss)		95		33		3,312		15		(22	)		3,433

Total Genworth Financial, Inc.’s stockholders’ equity		3,797		442		10,423		574		(1,051	)		14,185
Noncontrolling interests		—		447		—		—		—			447

Total equity		3,797		889		10,423		574		(1,051	)		14,632

Total liabilities and equity	$	4,504	$	2,406	$	81,640	$	9,953	$	2,839		$	101,342

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Deferred Acquisition Costs Rollforward

(amounts in millions)


	U.S. Mortgage Insurance			Australia Mortgage Insurance			U.S. Life Insurance			Runoff			Total
Unamortized balance as of December 31, 2019	$	30		$	37		$	3,039		$	174		$	3,280
Costs deferred		3			3			(2	)		—			4
Amortization, net of interest accretion		(3	)		(3	)		(83	)		(16	)		(105	)
Impact of foreign currency translation		—			(5	)		—			—			(5	)

Unamortized balance as of March 31, 2020		30			32			2,954			158			3,174
Effect of accumulated net unrealized investment (gains) losses		—			—			(1,281	)		5			(1,276	)

Balance as of March 31, 2020	$	30		$	32		$	1,673		$	163		$	1,898

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

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

(amounts in millions)


	2020		2019
	1Q		4Q			3Q		2Q		1Q		Total
REVENUES:
Premiums	$	226	$	237		$	219	$	206	$	194	$	856
Net investment income		33		30			31		28		28		117
Net investment gains (losses)		—		1			—		—		—		1
Policy fees and other income		2		1			1		1		1		4

Total revenues		261		269			251		235		223		978

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		19		11			23		—		16		50
Acquisition and operating expenses, net of deferrals		50		50			51		44		46		191
Amortization of deferred acquisition costs and intangibles		4		4			3		4		4		15

Total benefits and expenses		73		65			77		48		66		256

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		188		204			174		187		157		722
Provision for income taxes		40		43			37		40		33		153

INCOME FROM CONTINUING OPERATIONS		148		161			137		147		124		569

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses		—		(1	)		—		—		—		(1	)
Taxes on adjustments		—		—			—		—		—		—

ADJUSTED OPERATING INCOME	$	148	$	160		$	137	$	147	$	124	$	568


SALES:
Flow New Insurance Written (NIW)	$	17,900	$	18,100		$	18,900	$	15,800	$	9,600	$	62,400

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

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

(amounts in millions)


	2020					2019
	1Q					4Q					3Q					2Q					1Q
	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
Product
Monthly⁽¹⁾	$	16,400		92	%	$	16,300		90	%	$	16,800		89	%	$	13,900		88	%	$	8,400		87	%
Single		1,500		8			1,800		10			2,100		11			1,900		12			1,200		13

Total Flow	$	17,900		100	%	$	18,100		100	%	$	18,900		100	%	$	15,800		100	%	$	9,600		100	%

FICO Scores
Over 735	$	11,200		63	%	$	11,200		62	%	$	11,300		60	%	$	9,200		58	%	$	5,500		57	%
680-735		5,800		32			6,000		33			6,300		33			5,500		35			3,300		35
660-679⁽²⁾		500		3			500		3			700		4			600		4			400		4
620-659		400		2			400		2			600		3			500		3			400		4
<620		—		—			—		—			—		—			—		—			—		—

Total Flow	$	17,900		100	%	$	18,100		100	%	$	18,900		100	%	$	15,800		100	%	$	9,600		100	%

Loan-To-Value Ratio
95.01% and above	$	1,800		10	%	$	2,000		11	%	$	2,900		16	%	$	2,900		18	%	$	1,800		19	%
90.01% to 95.00%		7,700		43			7,900		44			8,000		42			6,900		44			4,200		44
85.01% to 90.00%		5,500		31			5,600		31			5,500		29			4,300		27			2,500		26
85.00% and below		2,900		16			2,600		14			2,500		13			1,700		11			1,100		11

Total Flow	$	17,900		100	%	$	18,100		100	%	$	18,900		100	%	$	15,800		100	%	$	9,600		100	%

Origination
Purchase	$	12,000		67	%	$	12,900		71	%	$	14,900		79	%	$	13,900		88	%	$	8,600		90	%
Refinance		5,900		33			5,200		29			4,000		21			1,900		12			1,000		10

Total Flow	$	17,900		100	%	$	18,100		100	%	$	18,900		100	%	$	15,800		100	%	$	9,600		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

FIRST QUARTER 2020

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	208		$	208		$	213		$	204		$	193		$	818

Flow New Risk Written	$	4,405		$	4,465		$	4,647		$	3,931		$	2,403		$	15,446

Primary Insurance In-Force⁽¹⁾	$	198,500		$	192,100		$	186,300		$	178,500		$	170,400

Risk In-Force
Flow⁽²⁾	$	47,723		$	46,228		$	44,885		$	42,917		$	41,020
Bulk⁽³⁾		143			150			160			167			173

Total Primary		47,866			46,378			45,045			43,084			41,193
Pool		53			56			59			62			66

Total Risk In-Force	$	47,919		$	46,434		$	45,104		$	43,146		$	41,259


Primary Risk In-Force That Is GSE Conforming		92	%		93	%		93	%		93	%		93	%

Expense Ratio (Net Earned Premiums)⁽⁴⁾		24	%		23	%		24	%		24	%		25	%		24	%

Expense Ratio (Net Premiums Written)⁽⁵⁾		26	%		27	%		25	%		24	%		26	%		25	%

Flow Persistency		76	%		74	%		75	%		82	%		86	%

Risk To Capital Ratio⁽⁶⁾		12.2:1			12.2:1			11.9:1			11.8:1			11.9:1

PMIERs Sufficiency Ratio⁽⁷⁾		142	%		138	%		129	%		123	%		123	%

Average Primary Loan Size (in thousands)	$	226		$	223		$	221		$	218		$	215

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 conforms to the presentation under the Private Mortgage Insurer Eligibility Requirements (PMIERs).

⁽³⁾	As of March 31, 2020, 88% 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⁾

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 March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, the PMIERs sufficiency ratios were in excess of $1.1 billion, $1.0 billion, $850 million, $650 million and $600 million, respectively, of available assets above the PMIERs requirements.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Loss Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
Paid claims
Flow
Direct	$	20		$	22		$	28		$	24		$	30		$	104
Assumed⁽¹⁾		—			—			—			—			—			—
Ceded		—			—			—			—			—			—
Loss adjustment expenses		2			2			1			2			2			7

Total Flow		22			24			29			26			32			111
Bulk		—			1			—			—			—			1

Total Primary		22			25			29			26			32			112
Pool		—			—			1			—			—			1

Total Paid Claims	$	22		$	25		$	30		$	26		$	32		$	113


Average Paid Claim (in thousands)	$	45.0		$	39.2		$	44.2		$	45.4		$	49.0

Average Reserve Per Delinquency (in thousands)
Flow	$	14.8		$	14.1		$	15.5		$	16.5		$	17.4
Bulk loans with established reserve	$	12.4		$	13.4		$	13.3		$	14.1		$	13.8

Reserves:
Flow direct case	$	201		$	204		$	216		$	222		$	246
Bulk direct case		4			4			4			4			4
Assumed⁽¹⁾		1			1			1			1			1
All other⁽²⁾		24			24			26			27			29

Total Reserves	$	230		$	233		$	247		$	254		$	280


Beginning Reserves	$	233		$	247		$	254		$	280		$	296		$	296
Paid claims		(22	)		(25	)		(30	)		(26	)		(32	)		(113	)
Increase (decrease) in reserves		19			11			23			—			16			50

Ending Reserves	$	230		$	233		$	247		$	254		$	280		$	233

Loss Ratio⁽³⁾		8	%		4	%		11	%		—	%		8	%		6	%

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

⁽²⁾	Other includes loss adjustment expenses, pool and incurred but not reported reserves.

⁽³⁾

The ratio of benefits and other changes in policy reserves to net earned premiums. The company recorded a favorable reserve adjustment of $13 million and a favorable adjustment to net earned premiums of $14 million in the fourth quarter of 2019, which reduced the loss ratio by six percentage points for the three months ended December 31, 2019. The company also recorded a favorable reserve adjustment of $10 million in the second quarter of 2019, which reduced the loss ratio by five percentage points for the three months ended June 30, 2019. These adjustments reduced the loss ratio by three percentage points for the twelve months ended December 31, 2019.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		15,246			16,209			15,575			15,070			15,764
Bulk loans with an established reserve		345			348			375			347			360
Bulk loans with no reserve⁽¹⁾		57			50			55			65			82

Total Number of Primary Delinquencies		15,648			16,607			16,005			15,482			16,206


Beginning Number of Primary Delinquencies		16,607			16,005			15,482			16,206			17,159			17,159
New delinquencies		8,214			8,738			8,650			7,705			8,539			33,632
Delinquency cures		(8,699	)		(7,526	)		(7,451	)		(7,872	)		(8,835	)		(31,684	)
Paid claims		(474	)		(610	)		(676	)		(557	)		(657	)		(2,500	)

Ending Number of Primary Delinquencies		15,648			16,607			16,005			15,482			16,206			16,607

Composition of Cures
Reported delinquent and cured-intraquarter		2,228			1,681			1,803			1,621			2,342
Number of missed payments delinquent prior to cure:
3 payments or less		4,901			4,457			4,280			4,567			4,862
4-11 payments		1,393			1,179			1,132			1,434			1,345
12 payments or more		177			209			236			250			286

Total		8,699			7,526			7,451			7,872			8,835

Primary Delinquencies by Missed Payment Status
3 payments or less		7,757			8,703			8,398			7,807			7,873
4-11 payments		4,953			4,919			4,411			4,243			4,755
12 payments or more		2,938			2,985			3,196			3,432			3,578

Primary Delinquencies		15,648			16,607			16,005			15,482			16,206



	March 31, 2020
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		7,572		$	24		$	351			7	%
4-11 payments in default		4,872			82			230			36	%
12 payments or more in default		2,802			95			142			67	%

Total		15,246		$	201		$	723			28	%


	December 31, 2019
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		8,524		$	27		$	386			7	%
4-11 payments in default		4,836			78			224			35	%
12 payments or more in default		2,849			99			145			68	%

Total		16,209		$	204		$	755			27	%

⁽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 they 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

FIRST QUARTER 2020

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2020			2019
	1Q			4Q			3Q			2Q			1Q
Primary Loans
Primary loans in-force		876,912			860,214			842,692			818,358			792,800
Primary delinquent loans		15,648			16,607			16,005			15,482			16,206
Primary delinquency rate		1.78	%		1.93	%		1.90	%		1.89	%		2.04	%

Flow loans in-force		866,562			849,472			831,586			806,739			780,733
Flow delinquent loans		15,246			16,209			15,575			15,070			15,764
Flow delinquency rate		1.76	%		1.91	%		1.87	%		1.87	%		2.02	%

Bulk loans in-force		10,350			10,742			11,106			11,619			12,067
Bulk delinquent loans		402			398			430			412			442
Bulk delinquency rate		3.88	%		3.71	%		3.87	%		3.55	%		3.66	%

A minus and sub-prime loans in-force		12,243			12,792			13,450			14,180			14,712
A minus and sub-prime delinquent loans		2,077			2,283			2,339			2,367			2,530
A minus and sub-prime delinquency rate		16.96	%		17.85	%		17.39	%		16.69	%		17.20	%

Pool Loans
Pool loans in-force		4,071			4,122			4,261			4,331			4,470
Pool delinquent loans		132			167			168			177			187
Pool delinquency rate		3.24	%		4.05	%		3.94	%		4.09	%		4.18	%

Primary Risk In-Force by Credit Quality
Over 735		58	%		57	%		57	%		57	%		57	%
680-735		33	%		33	%		33	%		32	%		32	%
660-679⁽¹⁾		4	%		5	%		5	%		5	%		5	%
620-659		4	%		4	%		4	%		5	%		5	%
<620		1	%		1	%		1	%		1	%		1	%

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	March 31, 2020
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		6.14	%		7.2	%	$	1,290		0.6	%	$	242		0.5	%		11.02	%
2005 to 2008		5.47	%		48.2			14,870		7.5			3,400		7.1			7.96	%
2009 to 2013		4.22	%		4.0			6,246		3.1			1,465		3.1			1.84	%
2014		4.46	%		4.0			6,492		3.3			1,561		3.3			2.05	%
2015		4.16	%		5.9			13,408		6.8			3,227		6.7			1.52	%
2016		3.89	%		8.7			25,079		12.6			6,031		12.6			1.21	%
2017		4.25	%		9.6			27,335		13.8			6,616		13.8			1.29	%
2018		4.76	%		9.1			29,005		14.6			7,034		14.7			1.21	%
2019		4.26	%		3.3			56,918		28.7			13,912		29.1			0.30	%
2020		3.82	%		—			17,824		9.0			4,378		9.1			0.01	%

Total		4.40	%		100.0	%	$	198,467		100.0	%	$	47,866		100.0	%		1.78	%


	March 31, 2020						December 31, 2019					March 31, 2019
	Primary Risk In-Force			Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate
Lender concentration (by original applicant)	$	47,866			1.78	%	$	46,378		1.93	%	$	41,193		2.04	%
Top 10 lenders	$	15,099			1.82	%	$	14,013		2.03	%	$	11,617		2.38	%
Top 20 lenders	$	19,410			1.75	%	$	18,264		1.91	%	$	15,555		2.27	%

Loan-to-value ratio
95.01% and above	$	8,482			2.00	%	$	8,364		3.29	%	$	7,401		3.46	%
90.01% to 95.00%		24,707			1.50	%		23,958		1.59	%		21,433		1.59	%
80.01% to 90.00%		14,540			1.37	%		13,912		1.50	%		12,195		1.73	%
80.00% and below		137			2.42	%		144		2.21	%		164		2.43	%

Total	$	47,866			1.78	%	$	46,378		1.93	%	$	41,193		2.04	%

Loan grade
Prime	$	47,433			1.57	%	$	45,929		1.69	%	$	40,678		1.76	%
A minus and sub-prime		433			16.96	%		449		17.85	%		515		17.20	%

Total	$	47,866			1.78	%	$	46,378		1.93	%	$	41,193		2.04	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $230 million as of March 31, 2020.

Australia Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Adjusted Operating Income and Sales—Australia Mortgage Insurance Segment

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	69		$	72		$	77		$	80		$	83		$	312
Net investment income		10			11			13			15			16			55
Net investment gains (losses)		(53	)		19			(9	)		1			12			23
Policy fees and other income		1			—			1			—			(1	)		—

Total revenues		27			102			82			96			110			390

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		24			22			28			26			28			104
Acquisition and operating expenses, net of deferrals		17			18			17			17			17			69
Amortization of deferred acquisition costs and intangibles		8			6			9			9			9			33
Interest expense		1			2			2			2			2			8

Total benefits and expenses		50			48			56			54			56			214

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(23	)		54			26			42			54			176
Provision (benefit) for income taxes		(7	)		16			8			13			16			53

INCOME (LOSS) FROM CONTINUING OPERATIONS		(16	)		38			18			29			38			123
Less: net income (loss) from continuing operations attributable to noncontrolling interests		(6	)		19			10			15			20			64

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(10	)		19			8			14			18			59

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net⁽¹⁾		27			(10	)		5			(1	)		(6	)		(12	)
Taxes on adjustments		(8	)		3			(1	)		—			2			4

ADJUSTED OPERATING INCOME⁽²⁾	$	9		$	12		$	12		$	13		$	14		$	51


SALES:
New Insurance Written (NIW)
Flow	$	4,100		$	4,900		$	4,600		$	3,700		$	3,400		$	16,600
Bulk		200			400			—			1,200			500			2,100

Total Australia NIW^(3),(4)	$	4,300		$	5,300		$	4,600		$	4,900		$	3,900		$	18,700


⁽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	$	53		$	(19	)	$	9		$	(1	)	$	(12	)	$	(23	)
Adjustment for net investment gains (losses) attributable to noncontrolling interests		(26	)		9			(4	)		—			6			11

Net investment (gains) losses, net	$	27		$	(10	)	$	5		$	(1	)	$	(6	)	$	( 12	)

⁽²⁾	Adjusted operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $10 million for the three months ended March 31, 2020.

⁽³⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $4,500 million for the three months ended March 31, 2020.

⁽⁴⁾	The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The new insurance written associated with these arrangements is excluded from these metrics.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	62		$	92		$	70		$	58		$	52		$	272
Loss Ratio⁽¹⁾		34	%		30	%		36	%		34	%		34	%		33	%
Expense Ratio (Net Earned Premiums)⁽²⁾		36	%		34	%		34	%		33	%		31	%		33	%
Expense Ratio (Net Premiums Written)⁽³⁾		40	%		26	%		38	%		44	%		50	%		38	%

Primary Insurance In-Force⁽⁴⁾	$	188,400		$	215,700		$	206,400		$	215,600		$	219,200
Primary Risk In-Force^(4),(5)
Flow	$	60,700		$	69,400		$	66,400		$	69,100		$	70,600
Bulk		5,000			5,700			5,500			6,000			5,700

Total	$	65,700		$	75,100		$	71,900		$	75,100		$	76,300



	March 31, 2020												December 31, 2019
Risk In-Force by Loan-To-Value Ratio^(4),(6)	Primary			Flow			Bulk						Primary			Flow			Bulk
95.01% and above	$	8,669		$	8,669		$	—					$	10,153		$	10,152		$	1
90.01% to 95.00%		18,719			18,711			8						21,284			21,277			7
80.01% to 90.00%		20,899			20,828			71						23,556			23,487			69
80.00% and below		17,363			12,517			4,846						20,156			14,543			5,613

Total	$	65,650		$	60,725		$	4,925					$	75,149		$	69,459		$	5,690

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.

⁽¹⁾	The ratio of benefits and other changes in policy reserves 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⁾

The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The insurance in-force and risk in-force associated with these arrangements are excluded from these metrics. The risk in-force on these transactions was approximately $143 million, $162 million, $152 million, $157 million and $157 million as of March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, respectively.

⁽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

FIRST QUARTER 2020

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(dollar amounts in millions)


Primary Insurance⁽¹⁾	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
Insured loans in-force		1,284,120			1,290,216			1,293,961			1,308,811			1,323,172
Insured delinquent loans		7,274			7,221			7,713			7,891			7,490
Insured delinquency rate		0.57	%		0.56	%		0.60	%		0.60	%		0.57	%

Flow loans in-force		1,183,889			1,189,019			1,192,282			1,200,603			1,217,050
Flow delinquent loans		7,055			7,003			7,469			7,642			7,265
Flow delinquency rate		0.60	%		0.59	%		0.63	%		0.64	%		0.60	%

Bulk loans in-force		100,231			101,197			101,679			108,208			106,122
Bulk delinquent loans		219			218			244			249			225
Bulk delinquency rate		0.22	%		0.22	%		0.24	%		0.23	%		0.21	%

Loss Metrics	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
Beginning Reserves	$	208		$	204		$	209		$	204		$	196
Paid claims⁽²⁾		(21	)		(25	)		(24	)		(20	)		(22	)
Increase in reserves		24			22			27			27			28
Impact of changes in foreign exchange rates		(27	)		7			(8	)		(2	)		2

Ending Reserves	$	184		$	208		$	204		$	209		$	204


	March 31, 2020						December 31, 2019						March 31, 2019
State and Territory⁽¹⁾	% 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		27	%		0.44	%		27	%		0.42	%		28	%		0.41	%
Queensland		23			0.75	%		23			0.75	%		23			0.74	%
Victoria		23			0.42	%		23			0.41	%		22			0.42	%
Western Australia		13			1.00	%		13			1.00	%		13			1.05	%
South Australia		6			0.67	%		6			0.65	%		6			0.69	%
Australian Capital Territory		3			0.25	%		3			0.24	%		3			0.19	%
Tasmania		2			0.30	%		2			0.29	%		2			0.28	%
New Zealand		2			0.02	%		2			0.02	%		2			0.04	%
Northern Territory		1			0.83	%		1			0.71	%		1			0.76	%

Total		100	%		0.57	%		100	%		0.56	%		100	%		0.57	%


By Policy Year⁽¹⁾
2011 and prior		46	%		0.50	%		47	%		0.50	%		49	%		0.51	%
2012		5			0.93	%		5			0.95	%		6			1.05	%
2013		6			1.06	%		6			1.04	%		7			0.98	%
2014		7			1.05	%		7			1.04	%		8			0.90	%
2015		7			0.79	%		7			0.77	%		8			0.74	%
2016		6			0.64	%		6			0.60	%		7			0.54	%
2017		6			0.51	%		7			0.45	%		7			0.28	%
2018		7			0.35	%		7			0.28	%		7			0.07	%
2019		8			0.04	%		8			0.02	%		1			—	%
2020		2			—	%		—			—	%		—			—	%

Total		100	%		0.57	%		100	%		0.56	%		100	%		0.57	%

⁽¹⁾	The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The loans in-force, including delinquent loans, and risk in-force associated with these arrangements are excluded from these metrics.

⁽²⁾	Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(Australian dollar amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	31		$	37		$	35		$	28		$	30		$	130

Total Paid Claims	$	31		$	37		$	35		$	28		$	30		$	130


Average Paid Claim (in thousands)	$	92.7		$	99.4		$	97.9		$	94.1		$	94.2

Average Reserve Per Delinquency (in thousands)	$	41.3		$	41.1		$	39.2		$	37.8		$	38.4

Loss Metrics
Beginning Reserves	$	297		$	302		$	298		$	288		$	279		$	279
Paid claims⁽¹⁾		(31	)		(37	)		(35	)		(28	)		(30	)		(130	)
Increase in reserves		35			32			39			38			39			148

Ending Reserves	$	301		$	297		$	302		$	298		$	288		$	297


Loan Amount^(2),(3)
Over $550K		20	%		19	%		19	%		19	%		18	%
$400K to $550K		22			22			22			21			21
$250K to $400K		32			33			33			33			34
$100K to $250K		21			21			21			22			22
$100K or Less		5			5			5			5			5

Total		100	%		100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)⁽³⁾	$	240		$	238		$	236		$	235		$	233

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.

⁽³⁾	The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The loans in-force associated with these arrangements are excluded from these metrics.

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

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

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	718		$	722		$	717		$	713		$	709		$	2,861
Net investment income		695			705			722			724			701			2,852
Net investment gains (losses)		(70	)		23			11			(36	)		84			82
Policy fees and other income		144			153			152			187			151			643

Total revenues		1,487			1,603			1,602			1,588			1,645			6,438

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,297			1,307			1,225			1,211			1,236			4,979
Interest credited		100			101			106			106			106			419
Acquisition and operating expenses, net of deferrals		151			156			158			142			148			604
Amortization of deferred acquisition costs and intangibles		87			150			89			67			66			372
Interest expense		5			4			4			4			5			17

Total benefits and expenses		1,640			1,718			1,582			1,530			1,561			6,391

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(153	)		(115	)		20			58			84			47
Provision (benefit) for income taxes		(27	)		(19	)		10			19			24			34

INCOME (LOSS) FROM CONTINUING OPERATIONS		(126	)		(96	)		10			39			60			13

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		67			(24	)		(14	)		35			(86	)		(89	)
Losses from early extinguishment of debt		4			—			—			—			—			—
Expenses related to restructuring		—			—			—			(1	)		4			3
Taxes on adjustments		(15	)		5			3			(7	)		17			18

ADJUSTED OPERATING INCOME (LOSS)	$	(70	)	$	(115	)	$	(1	)	$	66		$	(5	)	$	(55	)


⁽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	$	70		$	(23	)	$	(11	)	$	36		$	(84	)	$	(82	)
Adjustment for DAC and other intangible amortization and certain benefit reserves		(3	)		(1	)		(3	)		(1	)		(2	)		(7	)

Net investment (gains) losses, net	$	67		$	(24	)	$	(14	)	$	35		$	(86	)	$	(89	)

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

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

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	642		$	663		$	652		$	640		$	628		$	2,583
Net investment income		419			424			432			428			406			1,690
Net investment gains (losses)		(55	)		19			28			(15	)		80			112
Policy fees and other income		—			—			(2	)		2			—			—

Total revenues		1,006			1,106			1,110			1,055			1,114			4,385

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		928			925			916			896			927			3,664
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		101			105			106			93			101			405
Amortization of deferred acquisition costs and intangibles		24			25			25			26			25			101
Interest expense		—			—			—			—			—			—

Total benefits and expenses		1,053			1,055			1,047			1,015			1,053			4,170

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(47	)		51			63			40			61			215
Provision (benefit) for income taxes		(4	)		17			19			15			19			70

INCOME (LOSS) FROM CONTINUING OPERATIONS		(43	)		34			44			25			42			145

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		55			(19	)		(28	)		15			(80	)		(112	)
Expenses related to restructuring		—			—			—			(1	)		2			1
Taxes on adjustments		(11	)		4			5			(2	)		16			23

ADJUSTED OPERATING INCOME (LOSS)	$	1		$	19		$	21		$	37		$	(20	)	$	57


RATIOS:
Loss Ratio⁽¹⁾		78	%		76	%		76	%		74	%		81	%		77	%
Gross Benefits Ratio⁽²⁾		145	%		140	%		140	%		140	%		148	%		142	%

⁽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

FIRST QUARTER 2020

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

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	76		$	59		$	65		$	73		$	81		$	278
Net investment income		130			128			133			130			133			524
Net investment gains (losses)		1			6			(2	)		(3	)		10			11
Policy fees and other income		141			150			151			182			148			631

Total revenues		348			343			347			382			372			1,444

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		302			335			228			244			242			1,049
Interest credited		59			58			60			58			58			234
Acquisition and operating expenses, net of deferrals		39			39			40			37			34			150
Amortization of deferred acquisition costs and intangibles		44			109			50			28			27			214
Interest expense		5			4			4			4			5			17

Total benefits and expenses		449			545			382			371			366			1,664

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(101	)		(202	)		(35	)		11			6			(220	)
Provision (benefit) for income taxes		(22	)		(43	)		(8	)		3			1			(47	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(79	)		(159	)		(27	)		8			5			(173	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(1	)		(6	)		2			3			(10	)		(11	)
Losses from early extinguishment of debt		4			—			—			—			—			—
Expenses related to restructuring		—			—			—			—			1			1
Taxes on adjustments		(1	)		1			—			(1	)		2			2

ADJUSTED OPERATING INCOME (LOSS)	$	(77	)	$	(164	)	$	(25	)	$	10		$	(2	)	$	(181	)

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Adjusted Operating Income—U.S. Life Insurance Segment—Fixed Annuities

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		146			153			157			166			162			638
Net investment gains (losses)		(16	)		(2	)		(15	)		(18	)		(6	)		(41	)
Policy fees and other income		3			3			3			3			3			12

Total revenues		133			154			145			151			159			609

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		67			47			81			71			67			266
Interest credited		41			43			46			48			48			185
Acquisition and operating expenses, net of deferrals		11			12			12			12			13			49
Amortization of deferred acquisition costs and intangibles		19			16			14			13			14			57
Interest expense		—			—			—			—			—			—

Total benefits and expenses		138			118			153			144			142			557

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(5	)		36			(8	)		7			17			52
Provision (benefit) for income taxes		(1	)		7			(1	)		1			4			11

INCOME (LOSS) FROM CONTINUING OPERATIONS		(4	)		29			(7	)		6			13			41

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		13			1			12			17			4			34
Expenses related to restructuring		—			—			—			—			1			1
Taxes on adjustments		(3	)		—			(2	)		(4	)		(1	)		(7	)

ADJUSTED OPERATING INCOME	$	6		$	30		$	3		$	19		$	17		$	69


⁽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	$	16		$	2		$	15		$	18		$	6		$	41
Adjustment for DAC and other intangible amortization and certain benefit reserves		(3	)		(1	)		(3	)		(1	)		(2	)		(7	)

Net investment (gains) losses, net	$	13		$	1		$	12		$	17		$	4		$	34

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Adjusted Operating Income (Loss)—Runoff Segment

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q		Total
REVENUES:
Net investment income	$	49		$	45		$	48		$	47		$	47	$	187
Net investment gains (losses)		(75	)		(12	)		(9	)		(4	)		—		(25	)
Policy fees and other income		33			35			35			35			35		140

Total revenues		7			68			74			78			82		302

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		20			5			8			13			1		27
Interest credited		41			37			40			40			41		158
Acquisition and operating expenses, net of deferrals		13			13			13			13			13		52
Amortization of deferred acquisition costs and intangibles		17			2			10			4			2		18

Total benefits and expenses		91			57			71			70			57		255

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(84	)		11			3			8			25		47
Provision (benefit) for income taxes		(18	)		2			—			1			5		8

INCOME (LOSS) FROM CONTINUING OPERATIONS		(66	)		9			3			7			20		39

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		67			10			9			2			—		21
Taxes on adjustments		(14	)		(2	)		(2	)		—			—		(4	)

ADJUSTED OPERATING INCOME (LOSS)	$	(13	)	$	17		$	10		$	9		$	20	$	56


⁽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	$	75		$	12		$	9		$	4		$	—	$	25
Adjustment for DAC and other intangible amortization and certain benefit reserves		(8	)		(2	)		—			(2	)		—		(4	)

Net investment (gains) losses, net	$	67		$	10		$	9		$	2		$	—	$	21

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Adjusted Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	2		$	2		$	2		$	2		$	2		$	8
Net investment income		6			3			2			2			2			9
Net investment gains (losses)		46			(8	)		5			(7	)		(21	)		(31	)
Policy fees and other income		1			(1	)		2			—			1			2

Total revenues		55			(4	)		11			(3	)		(16	)		(12	)

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1			1			—			1			1			3
Acquisition and operating expenses, net of deferrals		18			12			8			13			13			46
Amortization of deferred acquisition costs and intangibles		—			2			1			—			—			3
Interest expense		46			54			53			54			53			214

Total benefits and expenses		65			69			62			68			67			266

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(10	)		(73	)		(51	)		(71	)		(83	)		(278	)
Provision (benefit) for income taxes		2			(16	)		(21	)		(7	)		(9	)		(53	)

LOSS FROM CONTINUING OPERATIONS		(12	)		(57	)		(30	)		(64	)		(74	)		(225	)

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(46	)		8			(5	)		7			21			31
Losses on early extinguishment of debt		8			—			—			—			—			—
Expenses related to restructuring		1			—			—			1			—			1
Taxes on adjustments		8			(1	)		—			(1	)		(5	)		(7	)

ADJUSTED OPERATING LOSS	$	(41	)	$	(50	)	$	(35	)	$	(57	)	$	(58	)	$	(200	)

⁽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.

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Investments Summary

(amounts in millions)


		March 31, 2020					December 31, 2019					September 30, 2019					June 30, 2019					March 31, 2019
		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⁽¹⁾		$	33,056		46	%	$	33,684		45	%	$	34,280		46	%	$	32,958		46	%	$	31,497		46	%
Private fixed maturity securities			12,736		17			13,384		18			13,411		18			13,091		18			12,566		18
Residential mortgage-backed securities⁽²⁾			2,243		3			2,232		3			2,335		3			2,395		3			2,498		4
Commercial mortgage-backed securities			2,963		4			3,006		4			3,051		4			2,970		4			2,943		4
Other asset-backed securities			3,061		4			3,257		4			3,337		5			3,287		5			3,021		4
State and political subdivisions⁽¹⁾			2,864		4			2,747		4			2,729		4			2,636		4			2,546		4
Non-investment grade fixed maturity securities			2,128		3			2,029		3			2,090		3			2,154		3			2,082		3
Equity securities:
Common stocks and mutual funds			91		—			105		—			107		—			111		—			103		—
Preferred stocks			97		—			134		—			132		—			151		—			148		—
Commercial mortgage loans, net			6,915		10			6,963		9			7,033		10			7,019		10			6,988		10
Policy loans			2,052		3			2,058		3			2,069		3			2,076		3			1,994		3
Cash, cash equivalents, restricted cash and short-term investments			2,696		3			3,601		5			1,839		2			1,907		3			2,117		3
Securities lending			58		—			51		—			62		—			113		—			106		—
Other invested assets:	Limited partnerships		671		1			634		1			565		1			512		1			462		1
	Derivatives:
	Interest rate swaps		1,002		1			197		—			402		1			144		—			59		—
	Foreign currency swaps		21		—			4		—			10		—			5		—			3		—
	Equity index options		62		—			81		—			62		—			65		—			60		—
	Other foreign currency contracts		16		—			8		—			13		—			8		—			5		—
	Other		422		1			397		1			369		—			357		—			314		—

Total invested assets and cash		$	73,154		100	%	$	74,572		100	%	$	73,896		100	%	$	71,959		100	%	$	69,512		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽³⁾ Designation
AAA		$	11,025		27	%	$	10,160		24	%	$	10,561		25	%	$	10,195		24	%	$	9,995		25	%
AA			3,554		8			3,536		8			3,758		9			3,674		9			3,558		9
A			11,268		27			12,315		29			12,040		28			11,690		28			11,431		28
BBB			14,807		35			15,041		36			15,418		35			14,768		36			13,872		35
BB			1,139		3			1,040		3			1,093		3			1,128		3			1,081		3
B			50		—			44		—			53		—			76		—			76		—
CCC and lower			21		—			26		—			25		—			25		—			25		—

Total public fixed maturity securities		$	41,864		100	%	$	42,162		100	%	$	42,948		100	%	$	41,556		100	%	$	40,038		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽³⁾ Designation
AAA		$	1,382		8	%	$	1,536		8	%	$	1,594		9	%	$	1,504		8	%	$	1,480		9	%
AA			2,090		12			2,235		12			2,254		12			2,315		13			2,165		13
A			4,914		28			5,182		29			5,296		29			5,286		30			5,032		29
BBB			7,883		46			8,305		46			8,222		45			7,905		44			7,538		44
BB			819		5			844		5			851		5			865		5			839		5
B			98		1			73		—			66		—			58		—			59		—
CCC and lower			1		—			2		—			2		—			2		—			2		—

Total private fixed maturity securities		$	17,187		100	%	$	18,177		100	%	$	18,285		100	%	$	17,935		100	%	$	17,115		100	%

⁽¹⁾	Certain fixed maturity securities balances have been reclassified as of December 31, 2019 to conform to the current period presentation.

⁽²⁾	The company does not have any material exposure to residential mortgage-backed securities collateralized debt obligations (CDOs).

⁽³⁾	Nationally Recognized Statistical Rating Organizations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Fixed Maturity Securities Summary

(amounts in millions)


	March 31, 2020					December 31, 2019					September 30, 2019					June 30, 2019					March 31, 2019
	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	$	5,771		10	%	$	5,025		8	%	$	5,254		9	%	$	4,987		8	%	$	4,731		8	%
State and political subdivisions⁽¹⁾		2,864		5			2,747		5			2,729		4			2,636		4			2,546		4
Foreign government		1,201		2			1,350		2			1,359		2			1,336		2			1,311		2
U.S. corporate⁽¹⁾		31,077		52			32,111		54			32,424		54			31,329		53			29,872		53
Foreign corporate		9,799		17			10,525		17			10,656		17			10,462		18			10,149		19
Residential mortgage-backed securities		2,273		4			2,270		4			2,375		4			2,436		4			2,540		4
Commercial mortgage-backed securities		2,981		5			3,026		5			3,071		5			2,989		5			2,962		5
Other asset-backed securities		3,085		5			3,285		5			3,365		5			3,316		6			3,042		5

Total fixed maturity securities	$	59,051		100	%	$	60,339		100	%	$	61,233		100	%	$	59,491		100	%	$	57,153		100	%

Corporate Bond Holdings—Industry Sector:

Investment Grade:
Finance and insurance	$	9,523		23	%	$	9,881		23	%	$	9,995		22	%	$	9,669		23	%	$	9,255		24	%
Utilities		5,555		14			5,743		14			5,868		14			5,697		14			5,491		14
Energy		2,799		7			3,699		9			3,801		9			3,732		9			3,596		9
Consumer—non-cyclical		6,163		15			6,247		15			6,293		15			6,043		14			5,735		14
Consumer—cyclical		1,856		4			1,937		5			2,003		5			1,836		4			1,731		4
Capital goods		3,076		8			3,161		7			3,243		8			3,108		7			2,956		7
Industrial		2,063		5			2,201		5			2,188		5			2,093		5			1,981		5
Technology and communications		3,966		10			3,966		9			3,919		9			3,821		10			3,580		9
Transportation		2,047		5			2,127		5			2,189		5			2,121		5			2,051		5
Other⁽¹⁾		1,855		4			1,839		4			1,691		4			1,719		4			1,770		4

Subtotal		38,903		95			40,801		96			41,190		96			39,839		95			38,146		95


Non-Investment Grade:
Finance and insurance		211		1			212		1			208		—			216		1			200		1
Utilities		77		—			83		—			85		—			100		—			94		—
Energy		391		1			319		1			346		1			331		1			308		1
Consumer—non-cyclical		196		1			138		—			138		—			155		—			168		—
Consumer—cyclical		225		1			220		1			233		1			243		1			237		1
Capital goods		149		—			155		—			137		—			157		—			146		—
Industrial		193		—			183		—			224		1			207		—			189		—
Technology and communications		418		1			417		1			425		1			465		2			452		2
Transportation		29		—			8		—			8		—			8		—			13		—
Other		84		—			100		—			86		—			70		—			68		—

Subtotal		1,973		5			1,835		4			1,890		4			1,952		5			1,875		5

Total	$	40,876		100	%	$	42,636		100	%	$	43,080		100	%	$	41,791		100	%	$	40,021		100	%

Fixed Maturity Securities—Contractual Maturity Dates:

Due in one year or less	$	1,421		2	%	$	1,434		2	%	$	1,587		3	%	$	1,684		3	%	$	1,777		3	%
Due after one year through five years		8,949		15			9,381		16			9,655		16			9,689		16			9,380		16
Due after five years through ten years		12,642		21			12,296		20			12,387		20			11,985		20			11,554		20
Due after ten years		27,700		48			28,647		48			28,793		47			27,392		46			25,898		46

Subtotal		50,712		86			51,758		86			52,422		86			50,750		85			48,609		85
Mortgage and asset-backed securities		8,339		14			8,581		14			8,811		14			8,741		15			8,544		15

Total fixed maturity securities	$	59,051		100	%	$	60,339		100	%	$	61,233		100	%	$	59,491		100	%	$	57,153		100	%

⁽¹⁾	Certain fixed maturity securities balances have been reclassified as of December 31, 2019 to conform to the current period presentation.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

General Account U.S. GAAP Net Investment Income Yields

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
U.S. GAAP Net Investment Income
Fixed maturity securities—taxable	$	622		$	616		$	631		$	634		$	613		$	2,494
Fixed maturity securities—non-taxable		2			2			2			2			2			8
Commercial mortgage loans		85			94			87			85			82			348
Equity securities		2			3			4			5			4			16
Other invested assets		49			50			49			47			44			190
Limited partnerships		(2	)		4			13			12			15			44
Policy loans		49			42			47			45			46			180
Cash, cash equivalents, restricted cash and short-term investments		11			9			8			11			11			39

Gross investment income before expenses and fees		818			820			841			841			817			3,319
Expenses and fees		(25	)		(26	)		(25	)		(25	)		(23	)		(99	)

Net investment income	$	793		$	794		$	816		$	816		$	794		$	3,220

Annualized Yields
Fixed maturity securities—taxable		4.6	%		4.6	%		4.7	%		4.7	%		4.6	%		4.6	%
Fixed maturity securities—non-taxable		5.2	%		6.0	%		6.1	%		6.1	%		6.1	%		6.1	%
Commercial mortgage loans		4.9	%		5.4	%		5.0	%		4.9	%		4.8	%		5.0	%
Equity securities		3.8	%		5.0	%		6.4	%		7.8	%		6.1	%		6.3	%
Other invested assets⁽¹⁾		47.8	%		52.2	%		54.0	%		56.1	%		65.7	%		57.2	%
Limited partnerships⁽²⁾		(1.2	)%		2.7	%		9.7	%		9.9	%		13.8	%		8.5	%
Policy loans		9.5	%		8.1	%		9.1	%		8.8	%		9.5	%		8.9	%
Cash, cash equivalents, restricted cash and short-term investments		1.4	%		1.3	%		1.7	%		2.2	%		2.1	%		1.7	%

Gross investment income before expenses and fees		4.9	%		4.9	%		5.1	%		5.1	%		5.0	%		5.0	%
Expenses and fees		(0.2	)%		(0.2	)%		(0.2	)%		(0.1	)%		(0.2	)%		(0.1	)%

Net investment income		4.7	%		4.7	%		4.9	%		5.0	%		4.8	%		4.9	%

Yields are based on net investment income as reported under U.S. 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 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 44 herein for average invested assets and cash used in the yield calculation.

⁽¹⁾	Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation.

⁽²⁾	Limited partnership investments are primarily equity-based and do not have fixed returns by period.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Net Investment Gains (Losses), Net—Detail

(amounts in millions)


	2020			2019
	1Q			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	2		$	(2	)	$	11		$	(16	)	$	30		$	23
U.S. government, agencies and government-sponsored enterprises		—			—			—			2			33			35
Foreign corporate		—			1			1			(1	)		(1	)		—
Foreign government		5			4			2			2			—			8
State and political subdivisions		—			—			—			—			—			—
Mortgage-backed securities		—			—			1			1			(2	)		—
Asset-backed securities		—			—			—			—			(1	)		(1	)
Foreign exchange		6			2			1			1			(1	)		3

Total net realized gains (losses) on available-for-sale securities		13			5			16			(11	)		58			68

Impairments:
Bank loans		—			(1	)		—			—			—			(1	)

Total impairments		—			(1	)		—			—			—			(1	)

Net change in allowance for credit losses on available-for-sale fixed maturity securities		—			—			—			—			—			—
Net realized gains (losses) on equity securities sold		—			—			6			—			3			9
Net unrealized gains (losses) on equity securities still held		(19	)		1			(4	)		5			12			14
Limited partnerships		(40	)		19			6			(11	)		15			29
Commercial mortgage loans		—			(1	)		(1	)		1			(1	)		(2	)
Derivative instruments		(105	)		(1	)		(29	)		(30	)		(12	)		(72	)
Other		(1	)		1			4			—			—			5

Net investment gains (losses), gross		(152	)		23			(2	)		(46	)		75			50
Adjustment for DAC and other intangible amortization and certain benefit reserves		11			3			3			3			2			11
Adjustment for net investment (gains) losses attributable to noncontrolling interests		26			(9	)		4			—			(6	)		(11	)

Net investment gains (losses), net	$	(115	)	$	17		$	5		$	(43	)	$	71		$	50

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
U.S. GAAP Basis ROE
Net income available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	103		$	343		$	31		$	159		$	181
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income⁽²⁾	$	10,695		$	10,650		$	10,646		$	10,609		$	10,539
U.S. GAAP Basis ROE^(1)/(2)		1.0	%		3.2	%		0.3	%		1.5	%		1.7	%

Operating ROE
Adjusted operating income for the twelve months ended⁽¹⁾	$	358		$	420		$	91		$	67		$	19
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income⁽²⁾	$	10,695		$	10,650		$	10,646		$	10,609		$	10,539
Operating ROE^(1)/(2)		3.3	%		3.9	%		0.9	%		0.6	%		0.2	%

Quarterly Average ROE	Three months ended
	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
U.S. GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	(66	)	$	(17	)	$	18		$	168		$	174
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income⁽⁴⁾	$	10,693		$	10,759		$	10,755		$	10,663		$	10,494
Annualized U.S. GAAP Quarterly Basis ROE^(3)/(4)		(2.5	)%		(0.6	)%		0.7	%		6.3	%		6.6	%

Operating ROE
Adjusted operating income for the period ended⁽³⁾	$	33		$	24		$	123		$	178		$	95
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income⁽⁴⁾	$	10,693		$	10,759		$	10,755		$	10,663		$	10,494
Annualized Operating Quarterly Basis ROE^(3)/(4)		1.2	%		0.9	%		4.6	%		6.7	%		3.6	%

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 U.S. 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 from page 9 herein.

⁽²⁾	Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, for the most recent five quarters.

⁽³⁾	Net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income from page 9 herein.

⁽⁴⁾	Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Reconciliation of Reported Yield to Core Yield


		2020			2019
	(Assets—amounts in billions)		1Q			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	73.2		$	74.6		$	73.9		$	72.0		$	69.5		$	74.6
	Subtract:
	Securities lending		0.1			0.1			0.1			0.1			0.1			0.1
	Unrealized gains (losses)		6.0			6.9			7.5			5.7			3.7			6.9

	Adjusted end of period invested assets and cash	$	67.1		$	67.6		$	66.3		$	66.2		$	65.7		$	67.6

(A)	Average Invested Assets and Cash Used in Reported and Core Yield Calculation	$	67.3		$	66.9		$	66.2		$	66.0		$	65.7		$	66.3

	(Income—amounts in millions)

(B)	Reported—Net Investment Income	$	793		$	794		$	816		$	816		$	794		$	3,220
	Subtract:
	Bond calls and commercial mortgage loan prepayments		16			23			13			7			6			49
	Other non-core items⁽¹⁾		7			(2	)		8			7			2			15

(C)	Core Net Investment Income	$	770		$	773		$	795		$	802		$	786		$	3,156


(B) / (A)	Reported Yield		4.71	%		4.74	%		4.93	%		4.95	%		4.83	%		4.86	%
(C) / (A)	Core Yield		4.57	%		4.62	%		4.80	%		4.86	%		4.79	%		4.76	%

Note: 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 U.S. GAAP.

⁽¹⁾	Includes cost basis adjustments on structured securities and various other immaterial items.

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2020

Financial Strength Ratings As Of May 4, 2020


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)	Baa3 (Adequate)	N/A
Genworth Financial Mortgage Insurance Pty Limited (Australia)⁽¹⁾	A (Strong)	N/A	N/A
Genworth Life Insurance Company⁽²⁾	N/A	N/A	C++ (Marginal)
Genworth Life and Annuity Insurance Company⁽²⁾	N/A	N/A	B (Fair)
Genworth Life Insurance Company of New York⁽²⁾	N/A	N/A	C++ (Marginal)

The S&P, Moody’s, A.M. Best, HR Ratings and Fitch Rating Service (Fitch) ratings included herewith represent those solicited by the company and 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 an insurer rated “A” (Strong) has strong financial security characteristics that outweigh any vulnerabilities and is highly likely to have the ability to meet financial commitments. 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 rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “A” and “BB+” ratings are the sixth- and eleventh-highest of S&P’s 21 ratings categories.

Moody’s states that insurance companies rated “Baa” (Adequate) offer adequate financial security. The “Baa” (Adequate) range is the fourth-highest of nine financial strength rating ranges assigned by Moody’s, which range from “Aaa” to “C.” Numeric modifiers are used to refer to the ranking within the groups, 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 “Baa3” rating is the tenth-highest of Moody’s 21 ratings categories.

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

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, Fitch and HR Ratings review their ratings periodically and the company cannot assure you that it will maintain the current ratings in the future. These and other agencies may also rate the company or its insurance subsidiaries on a solicited or an unsolicited basis. The company does not provide information to agencies issuing unsolicited ratings and cannot ensure that any agencies that rate the company or its insurance subsidiaries on an unsolicited basis will continue to do so.

⁽¹⁾	Genworth Financial Mortgage Insurance Pty Limited (Australia) is also rated “A+” by Fitch.

⁽²⁾

In April 2020, the company notified S&P and Moody’s of its decision to discontinue the solicitation of financial strength ratings of its principal life insurance subsidiaries. While the company does not provide non-public information to rating agencies issuing unsolicited ratings, it cannot ensure that rating agencies will discontinue their ratings of the company or its insurance subsidiaries on an unsolicited basis going forward.