EX-99.2

Exhibit 99.2

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021


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

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

*Quarterly Results by Business*
Adjusted Operating Income (Loss) and Sales - U.S. Mortgage Insurance Segment		16-21
Adjusted Operating Income (Loss) - U.S. Life Insurance Segment		23-26
Adjusted Operating Income (Loss) - Runoff Segment		28
Adjusted Operating Loss - Corporate and Other Activities		30

*Additional Financial Data*
Investments Summary		32
Fixed Maturity Securities Summary		33
General Account U.S. GAAP Net Investment Income Yields		34
Net Investment Gains (Losses), Net - Detail		35

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		37
Reconciliation of Reported Yield to Core Yield		38

*Corporate Information*
Financial Strength Ratings		40

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 2021

Dear Investor,

On March 3, 2021, the company completed a sale of its entire ownership interest of approximately 52% in Genworth Mortgage Insurance Australia Limited (“Genworth Australia”) through an underwritten agreement. The company sold its approximately 214.3 million shares of Genworth Australia for AUD2.28 per share and received $370 million in net cash proceeds. In the first quarter of 2021, the company recorded an after-tax loss on sale of $3 million.

Genworth Australia, previously the primary business in the Australia Mortgage Insurance segment, is reported as discontinued operations for all periods presented. Accordingly, all prior periods reflected herein have been re-presented on this basis. The following table presents a reconciliation of adjusted operating income (loss) as previously reported to adjusted operating income (loss) re-presented to reflect the Australia mortgage insurance business as discontinued operations for the periods indicated:


	2020
(Amounts in millions)	4Q			3Q			2Q			1Q			Total
ADJUSTED OPERATING INCOME (LOSS) AS PREVIOUSLY REPORTED	$	173		$	132		$	(21	)	$	33		$	317
Remove Australia Mortgage Insurance segment adjusted operating (income) loss reported as discontinued operations		16			(7	)		(1	)		(9	)		(1	)
Adjustment for corporate overhead allocations, net of taxes⁽¹⁾		(5	)		(4	)		(4	)		(4	)		(17	)
Tax adjustments⁽²⁾		4			4			3			—			11

RE-PRESENTED ADJUSTED OPERATING INCOME (LOSS)	$	188		$	125		$	(23	)	$	20		$	310

⁽¹⁾	Expenses previously reported in the Australia Mortgage Insurance segment and moved to Corporate and Other Activities.

⁽²⁾	Tax impacts resulting from the classification of Genworth Australia as discontinued operations.

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

Regards,

Investor Relations

InvestorInfo@genworth.com

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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), 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. 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. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves (see page 35).

In the first quarter of 2021, the company repurchased $146 million principal amount of Genworth Holdings, Inc.’s (Genworth Holdings) senior notes due in September 2021 for a pre-tax loss of $4 million. During 2020, the company repurchased $84 million principal amount of Genworth Holdings’ senior notes with 2021 maturity dates for a pre-tax gain of $3 million and $1 million in the second and first quarters of 2020, respectively. In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of 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. 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 $21 million in the first quarter of 2021 and $1 million in each of the fourth, second and first quarters of 2020 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 (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. This financial supplement 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 37 and 38 of this financial supplement.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Results of Operations and Selected Operating Performance Measures

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

The company taxes its businesses at the U.S. corporate federal income tax rate of 21%. Each segment is then adjusted to reflect the unique tax attributes of that segment, such as permanent differences between U.S. GAAP and 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 for the company’s U.S. mortgage insurance business. Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans the company insures. Risk in-force is based on the coverage percentage applied to the estimated current outstanding loan balance. 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 U.S. mortgage insurance business, 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 2021

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	11,083		$	10,893		$	10,615		$	10,196		$	10,634
Total accumulated other comprehensive income		3,675			4,425			4,141			4,447			3,815

Total Genworth Financial, Inc.’s stockholders’ equity	$	14,758		$	15,318		$	14,756		$	14,643		$	14,449

Book value per share	$	29.14		$	30.28		$	29.19		$	28.96		$	28.61
Book value per share, excluding accumulated other comprehensive income	$	21.88		$	21.54		$	20.99		$	20.17		$	21.05
Common shares outstanding as of the balance sheet date		506.5			505.8			505.6			505.6			505.1

	Twelve months ended
Twelve Month Rolling Average ROE	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
U.S. GAAP Basis ROE		4.0	%		1.7	%		(1.0	)%		(4.8	)%		1.0	%
Operating ROE⁽¹⁾		4.3	%		2.9	%		1.2	%		1.0	%		2.8	%

	Three months ended
Quarterly Average ROE	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
U.S. GAAP Basis ROE		6.8	%		9.9	%		16.1	%		(16.9	)%		(2.5	)%
Operating ROE⁽¹⁾		6.1	%		7.0	%		4.8	%		(0.9	)%		0.7	%


Basic and Diluted Shares	Three months ended March 31, 2021
Weighted-average common shares used in basic earnings per share calculations		506.0
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		7.8

Weighted-average common shares used in diluted earnings per share calculations		513.8

⁽¹⁾	See page 37 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.

Consolidated Quarterly Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


	2021		2020
	1Q		4Q			3Q		2Q			1Q			Total
REVENUES:
Premiums	$	968	$	970		$	963	$	957		$	946		$	3,836
Net investment income		801		846			820		779			782			3,227
Net investment gains (losses)		33		147			351		93			(99	)		492
Policy fees and other income		183		191			184		174			180			729

Total revenues		1,985		2,154			2,318		2,003			1,809			8,284

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,218		1,157			1,273		1,447			1,337			5,214
Interest credited		131		132			137		139			141			549
Acquisition and operating expenses, net of deferrals		275		253			235		210			237			935
Amortization of deferred acquisition costs and intangibles		77		174			94		87			108			463
Interest expense		51		55			47		42			51			195

Total benefits and expenses		1,752		1,771			1,786		1,925			1,874			7,356

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		233		383			532		78			(65	)		928
Provision (benefit) for income taxes		59		82			130		23			(5	)		230

INCOME (LOSS) FROM CONTINUING OPERATIONS		174		301			402		55			(60	)		698
Income (loss) from discontinued operations, net of taxes⁽¹⁾		21		(35	)		34		(473	)		(12	)		(486	)

NET INCOME (LOSS)		195		266			436		(418	)		(72	)		212
Less: net income (loss) from continuing operations attributable to noncontrolling interests		—		—			—		—			—			—
Less: net income (loss) from discontinued operations attributable to noncontrolling interests		8		(1	)		18		23			(6	)		34

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	187	$	267		$	418	$	(441	)	$	(66	)	$	178

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	174	$	301		$	402	$	55		$	(60	)	$	698
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders		13		(34	)		16		(496	)		(6	)		(520	)

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	187	$	267		$	418	$	(441	)	$	(66	)	$	178


Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	0.35	$	0.60		$	0.79	$	0.11		$	(0.12	)	$	1.38
Diluted	$	0.34	$	0.59		$	0.79	$	0.11		$	(0.12	)	$	1.36
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	0.37	$	0.53		$	0.83	$	(0.87	)	$	(0.13	)	$	0.35
Diluted	$	0.37	$	0.52		$	0.82	$	(0.86	)	$	(0.13	)	$	0.35
Weighted-average common shares outstanding
Basic		506.0		505.6			505.6		505.4			504.3			505.2
Diluted⁽²⁾		513.8		512.5			511.5		512.5			504.3			511.6

⁽¹⁾

Income (loss) from discontinued operations relates to the company’s former Australia mortgage insurance business that was sold on March 3, 2021 and its former lifestyle protection insurance business that was sold on December 1, 2015. Refer to page 30 for operating results of Genworth Australia reported as discontinued operations. In the first quarter of 2021, due to the sale of Genworth Australia, the company recorded an after-tax favorable adjustment of $11 million associated with a refinement to its tax matters agreement liability. During the first quarter of 2021 and the fourth, third and second quarters of 2020, the company recorded an after-tax loss of $1 million, $30 million, $22 million and $520 million, respectively, related to a secured promissory note with AXA S.A. (AXA) resulting from a settlement agreement reached in 2020 regarding a dispute over payment protection insurance claims sold by the company’s former lifestyle protection insurance business. During the first quarter of 2021 and the third quarter of 2020, based on an updated estimate, the company adjusted a liability associated with underwriting losses on a product sold by a distributor in the company’s former lifestyle protection insurance business which resulted in an after-tax benefit (loss) of $(4) million and $23 million, respectively.

⁽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.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions, except per share amounts)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	187		$	267		$	418		$	(441	)	$	(66	)	$	178
Add: net income (loss) from continuing operations attributable to noncontrolling interests		—			—			—			—			—			—
Add: net income (loss) from discontinued operations attributable to noncontrolling interests		8			(1	)		18			23			(6	)		34

NET INCOME (LOSS)		195			266			436			(418	)		(72	)		212
Less: income (loss) from discontinued operations, net of taxes		21			(35	)		34			(473	)		(12	)		(486	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		174			301			402			55			(60	)		698
Less: net income (loss) from continuing operations attributable to noncontrolling interests		—			—			—			—			—			—

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		174			301			402			55			(60	)		698

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net⁽¹⁾		(33	)		(144	)		(350	)		(97	)		88			(503	)
(Gains) losses on early extinguishment of debt		4			—			—			(3	)		12			9
Expenses related to restructuring		21			1			—			1			1			3
Taxes on adjustments		2			30			73			21			(21	)		103

ADJUSTED OPERATING INCOME (LOSS)	$	168		$	188		$	125		$	(23	)	$	20		$	310

ADJUSTED OPERATING INCOME (LOSS):
U.S. Mortgage Insurance segment	$	126		$	95		$	141		$	(3	)	$	148		$	381
U.S. Life Insurance segment:
Long-Term Care Insurance		95			129			59			48			1			237
Life Insurance		(63	)		(20	)		(69	)		(81	)		(77	)		(247	)
Fixed Annuities		30			20			24			28			6			78

Total U.S. Life Insurance segment		62			129			14			(5	)		(70	)		68

Runoff segment		12			13			19			24			(13	)		43
Corporate and Other		(32	)		(49	)		(49	)		(39	)		(45	)		(182	)

ADJUSTED OPERATING INCOME (LOSS)	$	168		$	188		$	125		$	(23	)	$	20		$	310


Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	0.37		$	0.53		$	0.83		$	(0.87	)	$	(0.13	)	$	0.35
Diluted	$	0.37		$	0.52		$	0.82		$	(0.86	)	$	(0.13	)	$	0.35
Adjusted operating income (loss) per share
Basic	$	0.33		$	0.37		$	0.25		$	(0.05	)	$	0.04		$	0.61
Diluted	$	0.33		$	0.37		$	0.25		$	(0.05	)	$	0.04		$	0.61
Weighted-average common shares outstanding
Basic		506.0			505.6			505.6			505.4			504.3			505.2
Diluted⁽²⁾		513.8			512.5			511.5			512.5			504.3			511.6

⁽¹⁾	Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves (see page 35 for reconciliation).

⁽²⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value⁽¹⁾	$	60,231		$	63,495		$	62,372		$	61,579		$	57,396
Equity securities, at fair value		238			386			575			154			146
Commercial mortgage loans⁽²⁾		6,787			6,774			6,911			6,945			6,944
Less: Allowance for credit losses		(32	)		(31	)		(31	)		(28	)		(29	)

Commercial mortgage loans, net		6,755			6,743			6,880			6,917			6,915
Policy loans		1,976			1,978			2,153			2,182			2,052
Other invested assets		1,759			2,099			2,171			2,362			2,338

Total investments		70,959			74,701			74,151			73,194			68,847
Cash, cash equivalents and restricted cash		1,964			2,561			2,740			2,523			2,406
Accrued investment income		704			655			635			587			693
Deferred acquisition costs		1,247			1,487			1,585			1,682			1,866
Intangible assets		155			157			165			177			214
Reinsurance recoverable		16,788			16,864			16,832			16,942			17,118
Less: Allowance for credit losses		(44	)		(45	)		(44	)		(44	)		(42	)

Reinsurance recoverable, net		16,744			16,819			16,788			16,898			17,076
Other assets		439			404			419			428			418
Deferred tax asset		314			65			201			235			271
Separate account assets		6,032			6,081			5,700			5,536			4,967
Assets related to discontinued operations⁽³⁾		—			2,817			2,541			2,377			2,086

Total assets	$	98,558		$	105,747		$	104,925		$	103,637		$	98,844

⁽¹⁾

Amortized cost of $53,470 million, $53,417 million, $53,241 million, $52,902 million and $52,502 million as of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively, and allowance for credit losses of $3 million, $4 million, $5 million, $7 million and $— as of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively.

⁽²⁾	Net of unamortized balance of loan origination fees and costs of $4 million as of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020.

⁽³⁾	Prior to the sale on March 3, 2021, the assets of Genworth Australia were segregated in the consolidated balance sheets. The major asset categories of Genworth Australia reported as discontinued operations were as follows:


	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	—	$	2,295	$	2,044	$	1,965	$	1,655
Equity securities, at fair value		—		90		54		52		42
Other invested assets		—		154		231		111		127

Total investments		—		2,539		2,329		2,128		1,824
Cash, cash equivalents and restricted cash		—		95		40		74		77
Accrued investment income		—		16		15		14		14
Deferred acquisition costs		—		42		38		36		32
Intangible assets and goodwill		—		43		44		46		49
Reinsurance recoverable		—		—		—		2		4
Less: Allowance for credit losses		—		—		—		—		—

Reinsurance recoverable, net		—		—		—		2		4
Other assets		—		40		26		26		38
Deferred tax asset		—		42		49		51		48

Assets related to discontinued operations	$	—	$	2,817	$	2,541	$	2,377	$	2,086

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	40,634		$	42,695		$	41,995		$	41,463		$	39,339
Policyholder account balances		19,999			21,503			22,731			22,921			22,313
Liability for policy and contract claims		11,415			11,486			11,135			11,054			10,948
Unearned premiums		728			775			794			810			846
Other liabilities		1,710			1,614			1,822			1,941			1,543
Long-term borrowings		2,922			3,403			3,401			2,679			2,729
Separate account liabilities		6,032			6,081			5,700			5,536			4,967
Liabilities related to discontinued operations⁽¹⁾		360			2,370			2,115			2,145			1,325

Total liabilities		83,800			89,927			89,693			88,549			84,010

Equity:
Common stock		1			1			1			1			1
Additional paid-in capital		12,011			12,008			11,997			11,996			11,993
Accumulated other comprehensive income (loss)		3,675			4,425			4,141			4,447			3,815
Retained earnings		1,771			1,584			1,317			899			1,340
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		14,758			15,318			14,756			14,643			14,449
Noncontrolling interests		—			502			476			445			385

Total equity		14,758			15,820			15,232			15,088			14,834

Total liabilities and equity	$	98,558		$	105,747		$	104,925		$	103,637		$	98,844

⁽¹⁾

Liabilities related to discontinued operations relates to a liability recorded in connection with a settlement agreement reached with AXA involving the sale of the company’s former lifestyle protection insurance business. Liabilities related to discontinued operations also includes an unrelated liability associated with underwriting losses on a product sold by a distributor in the company’s former lifestyle protection insurance business. In addition, prior to the sale on March 3, 2021, the liabilities of Genworth Australia were segregated in the consolidated balance sheets. The major liability categories of Genworth Australia reported as discontinued operations were as follows:


	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
LIABILITIES
Liability for policy and contract claims	$	—	$	331	$	238	$	226	$	184
Unearned premiums		—		1,193		1,052		994		876
Other liabilities		—		104		91		92		102
Long-term borrowings		—		145		169		138		122

Liabilities related to discontinued operations	$	—	$	1,773	$	1,550	$	1,450	$	1,284

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Balance Sheet by Segment

(amounts in millions)


	March 31, 2021
	U.S. Mortgage Insurance		U.S. Life Insurance			Runoff		Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	5,572	$	63,435		$	2,640	$	1,980		$	73,627
Deferred acquisition costs and intangible assets		42		1,226			123		11			1,402
Reinsurance recoverable, net		—		16,064			680		—			16,744
Deferred tax and other assets		69		(373	)		46		1,011			753
Separate account assets		—		—			6,032		—			6,032

Total assets	$	5,683	$	80,352		$	9,521	$	3,002		$	98,558

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	40,632		$	2	$	—		$	40,634
Policyholder account balances		—		16,969			3,030		—			19,999
Liability for policy and contract claims		603		10,785			17		10			11,415
Unearned premiums		281		444			3		—			728
Other liabilities		105		824			49		732			1,710
Borrowings		739		—			—		2,183			2,922
Separate account liabilities		—		—			6,032		—			6,032
Liabilities related to discontinued operations		—		—			—		360			360

Total liabilities		1,728		69,654			9,133		3,285			83,800

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,816		7,660			381		(774	)		11,083
Allocated accumulated other comprehensive income (loss)		139		3,038			7		491			3,675

Total Genworth Financial, Inc.’s stockholders’ equity		3,955		10,698			388		(283	)		14,758
Noncontrolling interests		—		—			—		—			—

Total equity		3,955		10,698			388		(283	)		14,758

Total liabilities and equity	$	5,683	$	80,352		$	9,521	$	3,002		$	98,558

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Balance Sheet by Segment

(amounts in millions)


	December 31, 2020
	U.S. Mortgage Insurance		U.S. Life Insurance			Runoff		Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	5,528	$	67,149		$	2,786	$	2,454		$	77,917
Deferred acquisition costs and intangible assets		44		1,448			142		10			1,644
Reinsurance recoverable, net		—		16,122			697		—			16,819
Deferred tax and other assets		55		(48	)		29		433			469
Separate account assets		—		—			6,081		—			6,081
Assets related to discontinued operations		—		—			—		2,817			2,817

Total assets	$	5,627	$	84,671		$	9,735	$	5,714		$	105,747

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	42,693		$	2	$	—		$	42,695
Policyholder account balances		—		18,385			3,118		—			21,503
Liability for policy and contract claims		555		10,908			12		11			11,486
Unearned premiums		307		465			3		—			775
Other liabilities		121		715			42		736			1,614
Borrowings		738		—			—		2,665			3,403
Separate account liabilities		—		—			6,081		—			6,081
Liabilities related to discontinued operations		—		—			—		2,370			2,370

Total liabilities		1,721		73,166			9,258		5,782			89,927

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,696		7,352			437		(592	)		10,893
Allocated accumulated other comprehensive income (loss)		210		4,153			40		22			4,425

Total Genworth Financial, Inc.’s stockholders’ equity		3,906		11,505			477		(570	)		15,318
Noncontrolling interests		—		—			—		502			502

Total equity		3,906		11,505			477		(68	)		15,820

Total liabilities and equity	$	5,627	$	84,671		$	9,735	$	5,714		$	105,747

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Deferred Acquisition Costs Rollforward

(amounts in millions)


	U.S. Mortgage Insurance			U.S. Life Insurance			Runoff			Total
Unamortized balance as of December 31, 2020	$	29		$	2,629		$	151		$	2,809
Costs deferred		2			—			—			2
Amortization, net of interest accretion		(2	)		(62	)		(4	)		(68	)

Unamortized balance as of March 31, 2021		29			2,567			147			2,743
Effect of accumulated net unrealized investment (gains) losses		—			(1,469	)		(27	)		(1,496	)

Balance as of March 31, 2021	$	29		$	1,098		$	120		$	1,247

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q		Total
REVENUES:
Premiums	$	252		$	251		$	251		$	243		$	226	$	971
Net investment income		35			35			34			31			33		133
Net investment gains (losses)		(1	)		(1	)		(2	)		(1	)		—		(4	)
Policy fees and other income		2			2			1			1			2		6

Total revenues		288			287			284			274			261		1,106

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		55			89			45			228			19		381
Acquisition and operating expenses, net of deferrals		57			55			54			47			50		206
Amortization of deferred acquisition costs and intangibles		4			10			3			4			4		21
Interest expense		13			12			6			—			—		18

Total benefits and expenses		129			166			108			279			73		626

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		159			121			176			(5	)		188		480
Provision (benefit) for income taxes		34			26			37			(1	)		40		102

INCOME (LOSS) FROM CONTINUING OPERATIONS		125			95			139			(4	)		148		378

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		1			1			2			1			—		4
Taxes on adjustments		—			(1	)		—			—			—		(1	)

ADJUSTED OPERATING INCOME (LOSS)	$	126		$	95		$	141		$	(3	)	$	148	$	381


SALES:
Primary New Insurance Written (NIW)	$	24,900		$	27,000		$	26,600		$	28,400		$	17,900	$	99,900

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions)


	2021					2020
	1Q					4Q					3Q					2Q					1Q
	Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW
Product
Monthly	$	23,400		94	%	$	24,700		92	%	$	23,400		88	%	$	25,800		91	%	$	16,200		91	%
Single		1,400		6			2,200		8			3,100		12			2,500		9			1,500		8
Other⁽¹⁾		100		—			100		—			100		—			100		—			200		1

Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%

Origination
Purchase	$	15,500		62	%	$	17,800		66	%	$	20,000		75	%	$	17,400		61	%	$	12,000		67	%
Refinance		9,400		38			9,200		34			6,600		25			11,000		39			5,900		33

Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%

FICO Scores
Over 760	$	10,500		42	%	$	10,500		39	%	$	11,300		43	%	$	12,300		43	%	$	7,500		42	%
740-759		3,800		15			4,300		16			4,100		15			4,800		17			3,200		18
720-739		3,400		14			4,000		15			3,500		13			4,200		15			2,600		14
700-719		3,000		12			3,600		13			3,100		12			3,300		11			2,200		12
680-699		2,500		10			2,700		10			2,400		9			2,200		8			1,500		8
660-679⁽²⁾		1,000		4			1,100		4			1,300		5			900		3			500		3
640-659		500		2			600		2			600		2			500		2			300		2
620-639		200		1			200		1			300		1			200		1			100		1
<620		—		—			—		—			—		—			—		—			—		—

Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%

Loan-To-Value Ratio
95.01% and above	$	2,200		9	%	$	2,900		11	%	$	3,700		14	%	$	3,200		11	%	$	1,800		10	%
90.01% to 95.00%		9,500		38			11,100		41			11,700		44			12,300		43			7,700		43
85.01% to 90.00%		8,400		34			8,100		30			7,100		27			8,100		29			5,500		31
85.00% and below		4,800		19			4,900		18			4,100		15			4,800		17			2,900		16

Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%

Debt-To-Income Ratio
45.01% and above	$	2,600		10	%	$	3,100		11	%	$	3,100		12	%	$	4,000		14	%	$	3,500		20	%
38.01% to 45.00%		8,700		35			10,200		38			9,900		37			9,600		34			6,000		33
38.00% and below		13,600		55			13,700		51			13,600		51			14,800		52			8,400		47

Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		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 2021

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	226		$	229		$	240		$	217		$	208		$	894

Primary Insurance In-Force⁽¹⁾	$	210,200		$	207,900		$	203,000		$	197,000		$	188,000

Risk In-Force
Primary⁽²⁾	$	52,866		$	52,475		$	51,393		$	49,868		$	47,740
Pool		134			146			156			169			179

Total Risk In-Force	$	53,000		$	52,621		$	51,549		$	50,037		$	47,919


Expense Ratio (Net Earned Premiums)⁽³⁾		24	%		26	%		23	%		21	%		24	%		23	%

Primary Persistency		56	%		57	%		59	%		59	%		74	%		59	%

Combined Risk To Capital Ratio⁽⁴⁾		11.7:1			12.1:1			12.1:1			12.0:1			12.2:1

GMICO Risk To Capital Ratio^(4),(5)		11.9:1			12.3:1			12.3:1			12.2:1			12.4:1

PMIERs Available Assets⁽⁶⁾	$	4,769		$	4,588		$	4,451		$	4,218		$	3,974

PMIERs Net Required Assets⁽⁶⁾	$	3,005		$	3,359		$	3,377		$	2,943		$	2,803

Available Assets Above PMIERs Requirements⁽⁶⁾	$	1,764		$	1,229		$	1,074		$	1,275		$	1,171

PMIERs Sufficiency Ratio⁽⁶⁾		159	%		137	%		132	%		143	%		142	%

Average Primary Loan Size (in thousands)	$	228		$	225		$	222		$	220		$	217

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

⁽¹⁾	Primary insurance in-force represents aggregate unpaid principal balance for loans the company insures. Original loan balances are primarily used to determine premiums.

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

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

⁽⁴⁾

Certain states limit a private mortgage insurer’s risk in-force to 25 times the total of the insurer’s policyholders’ surplus plus the statutory 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.

⁽⁵⁾	Genworth Mortgage Insurance Corporation (GMICO), the company’s principal U.S. mortgage insurance subsidiary.

⁽⁶⁾

The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within the published PMIERs. The current period PMIERs sufficiency is an estimate due to the timing of the PMIERs filing for the U.S. mortgage insurance business and does not take into consideration the impact of restrictions recently imposed by the government-sponsored enterprises (GSEs). The GSEs have imposed certain capital restrictions on the U.S. mortgage insurance business which remain in effect until certain conditions are met. These restrictions currently require GMICO to maintain 115% of published PMIERs minimum required assets among other restrictions.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Loss Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
Average Paid Claim (in thousands)	$	54.7		$	47.2		$	55.6		$	47.1		$	45.0

Average Reserve Per Primary Delinquency (in thousands)⁽¹⁾	$	13.6		$	11.5		$	8.8		$	7.1		$	13.1

Reserves:
Primary direct case	$	564		$	517		$	436		$	379		$	202
All other⁽²⁾		39			38			38			60			28

Total Reserves	$	603		$	555		$	474		$	439		$	230


Beginning Reserves	$	555		$	474		$	439		$	230		$	233		$	233
Paid claims		(7	)		(8	)		(10	)		(19	)		(22	)		(59	)
Increase in reserves		55			89			45			228			19			381

Ending Reserves	$	603		$	555		$	474		$	439		$	230		$	555


Loss Ratio⁽³⁾		22	%		35	%		18	%		94	%		8	%		39	%

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⁾	Primary direct case reserves divided by primary delinquency count.

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

⁽³⁾	The ratio of benefits and other changes in policy reserves to net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
Primary Loans
Primary loans in-force		922,186			924,624			913,974			896,232			868,111
Primary delinquent loans		41,332			44,904			49,692			53,587			15,417
Primary delinquency rate		4.48	%		4.86	%		5.44	%		5.98	%		1.78	%

Beginning Number of Primary Delinquencies		44,904			49,692			53,587			15,417			16,392			16,392
New delinquencies		10,053			11,923			16,664			48,373			8,114			85,074
Delinquency cures		(13,478	)		(16,548	)		(20,404	)		(9,795	)		(8,649	)		(55,396	)
Paid claims		(134	)		(152	)		(152	)		(404	)		(440	)		(1,148	)
Rescissions and claim denials		(13	)		(11	)		(3	)		(4	)		—			(18	)

Ending Number of Primary Delinquencies		41,332			44,904			49,692			53,587			15,417			44,904

Composition of Cures
Reported delinquent and cured-intraquarter		1,549			1,433			1,939			3,992			2,236
Number of missed payments delinquent prior to cure:
3 payments or less		4,812			5,567			13,022			4,522			4,850
4 - 11 payments		6,849			9,347			5,239			1,122			1,389
12 payments or more		268			201			204			159			174

Total		13,478			16,548			20,404			9,795			8,649

Primary Delinquencies by Missed Payment Status
3 payments or less		8,296			10,484			13,904			43,158			7,650
4 - 11 payments		21,011			30,324			32,366			7,448			4,909
12 payments or more		12,025			4,096			3,422			2,981			2,858

Primary Delinquencies		41,332			44,904			49,692			53,587			15,417



	March 31, 2021
Primary Direct Case Reserves⁽¹⁾ and Percentage Reserved by Payment Status	Direct Case Reserves			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default	$	40		$	436			9	%
4 - 11 payments in default		227			1,232			18	%
12 payments or more in default		297			724			41	%

Total	$	564		$	2,392			24	%


	December 31, 2020
Primary Direct Case Reserves⁽¹⁾ and Percentage Reserved by Payment Status	Direct Case Reserves			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default	$	43		$	549			8	%
4 - 11 payments in default		331			1,853			18	%
12 payments or more in default		143			204			70	%

Total	$	517		$	2,606			20	%

⁽¹⁾	Primary direct case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	March 31, 2021
Policy Year	Average Rate⁽¹⁾			% of Direct Case Reserves⁽²⁾			Primary Insurance In-Force		% of Total			Primary Risk In-Force		% of Total			Delinquency Rate
2004 and prior		6.15	%		3	%	$	663		—	%	$	189		—	%		16.74	%
2005 to 2008		5.53	%		26			9,837		5			2,516		5			13.27	%
2009 to 2013		4.22	%		2			2,394		1			651		1			6.29	%
2014		4.47	%		3			3,176		1			859		2			6.21	%
2015		4.16	%		5			6,729		3			1,795		3			5.69	%
2016		3.88	%		9			13,214		6			3,503		7			5.32	%
2017		4.25	%		11			13,817		7			3,556		7			6.58	%
2018		4.77	%		13			14,618		7			3,671		7			7.86	%
2019		4.21	%		19			33,429		16			8,361		16			5.73	%
2020		3.27	%		9			87,599		42			21,787		41			1.36	%
2021		2.89	%		—			24,711		12			5,978		11			0.03	%

Total		3.75	%		100	%	$	210,187		100	%	$	52,866		100	%		4.48	%


	March 31, 2021						December 31, 2020					March 31, 2020
	Primary Risk In-Force			Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force
Loan-to-value ratio
95.01% and above	$	9,151			17	%	$	9,279		18	%	$	8,482		18	%
90.01% to 95.00%		26,637			51			26,774		51			24,703		52
80.01% to 90.00%		17,060			32			16,401		31			14,532		30
80.00% and below		18			—			21		—			23		—

Total	$	52,866			100	%	$	52,475		100	%	$	47,740		100	%


	March 31, 2021						December 31, 2020					March 31, 2020
	Primary Risk In-Force			Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force
Credit Quality
Over 760	$	19,829			37	%	$	19,691		37	%	$	18,216		38	%
740-759		8,442			16			8,497		16			7,986		17
720-739		7,715			15			7,673		15			6,970		15
700-719		6,678			13			6,579		12			5,688		12
680-699		5,231			10			5,100		10			4,417		9
660-679⁽³⁾		2,484			5			2,442		5			2,110		4
640-659		1,485			3			1,472		3			1,322		3
620-639		734			1			737		1			701		1
<620		268			—			284		1			330		1

Total	$	52,866			100	%	$	52,475		100	%	$	47,740		100	%

⁽¹⁾	Average annual mortgage interest rate weighted by insurance in-force.

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

⁽³⁾	Loans with unknown FICO scores are included in the 660-679 category.

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	714		$	717		$	711		$	712		$	718		$	2,858
Net investment income		716			765			726			692			695			2,878
Net investment gains (losses)		42			121			348			118			(70	)		517
Policy fees and other income		148			157			152			142			144			595

Total revenues		1,620			1,760			1,937			1,664			1,487			6,848

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,155			1,050			1,221			1,213			1,297			4,781
Interest credited		90			91			95			97			100			383
Acquisition and operating expenses, net of deferrals		192			164			158			147			151			620
Amortization of deferred acquisition costs and intangibles		68			161			87			83			87			418
Interest expense		—			—			—			—			5			5

Total benefits and expenses		1,505			1,466			1,561			1,540			1,640			6,207

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		115			294			376			124			(153	)		641
Provision (benefit) for income taxes		32			70			87			33			(27	)		163

INCOME (LOSS) FROM CONTINUING OPERATIONS		83			224			289			91			(126	)		478

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		(41	)		(123	)		(348	)		(121	)		67			(525	)
Losses on early extinguishment of debt		—			—			—			—			4			4
Expenses related to restructuring		14			1			—			—			—			1
Taxes on adjustments		6			27			73			25			(15	)		110

ADJUSTED OPERATING INCOME (LOSS)	$	62		$	129		$	14		$	(5	)	$	(70	)	$	68


⁽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	$	(42	)	$	(121	)	$	(348	)	$	(118	)	$	70		$	(517	)
Adjustment for DAC and other intangible amortization and certain benefit reserves		1			(2	)		—			(3	)		(3	)		(8	)

Net investment (gains) losses, net	$	(41	)	$	(123	)	$	(348	)	$	(121	)	$	67		$	(525	)

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	646		$	668		$	661		$	649		$	642		$	2,620
Net investment income		465			499			456			422			419			1,796
Net investment gains (losses)		27			118			347			129			(55	)		539
Policy fees and other income		2			3			2			—			—			5

Total revenues		1,140			1,288			1,466			1,200			1,006			4,960

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		829			863			901			876			928			3,568
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		141			114			108			103			101			426
Amortization of deferred acquisition costs and intangibles		24			21			25			21			24			91
Interest expense		—			—			—			—			—			—

Total benefits and expenses		994			998			1,034			1,000			1,053			4,085

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		146			290			432			200			(47	)		875
Provision (benefit) for income taxes		38			69			99			49			(4	)		213

INCOME (LOSS) FROM CONTINUING OPERATIONS		108			221			333			151			(43	)		662
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(27	)		(118	)		(347	)		(129	)		55			(539	)
Expenses related to restructuring		10			1			—			—			—			1
Taxes on adjustments		4			25			73			26			(11	)		113

ADJUSTED OPERATING INCOME	$	95		$	129		$	59		$	48		$	1		$	237


RATIOS:
Loss Ratio⁽¹⁾		62	%		65	%		71	%		69	%		78	%		71	%
Gross Benefits Ratio⁽²⁾		128	%		129	%		136	%		135	%		145	%		136	%

⁽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 2021

Adjusted Operating Loss—U.S. Life Insurance Segment—Life Insurance

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	68		$	49		$	50		$	63		$	76		$	238
Net investment income		125			131			131			127			130			519
Net investment gains (losses)		12			10			4			5			1			20
Policy fees and other income		143			151			148			140			141			580

Total revenues		348			341			333			335			348			1,357

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		282			131			269			289			302			991
Interest credited		56			55			57			57			59			228
Acquisition and operating expenses, net of deferrals		40			38			39			34			39			150
Amortization of deferred acquisition costs and intangibles		41			133			52			53			44			282
Interest expense		—			—			—			—			5			5

Total benefits and expenses		419			357			417			433			449			1,656

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(71	)		(16	)		(84	)		(98	)		(101	)		(299	)
Benefit for income taxes		(15	)		(3	)		(18	)		(21	)		(22	)		(64	)

LOSS FROM CONTINUING OPERATIONS		(56	)		(13	)		(66	)		(77	)		(79	)		(235	)

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(12	)		(10	)		(4	)		(5	)		(1	)		(20	)
Losses on early extinguishment of debt		—			—			—			—			4			4
Expenses related to restructuring		3			—			—			—			—			—
Taxes on adjustments		2			3			1			1			(1	)		4

ADJUSTED OPERATING LOSS	$	(63	)	$	(20	)	$	(69	)	$	(81	)	$	(77	)	$	(247	)

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		126			135			139			143			146			563
Net investment gains (losses)		3			(7	)		(3	)		(16	)		(16	)		(42	)
Policy fees and other income		3			3			2			2			3			10

Total revenues		132			131			138			129			133			531

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		44			56			51			48			67			222
Interest credited		34			36			38			40			41			155
Acquisition and operating expenses, net of deferrals		11			12			11			10			11			44
Amortization of deferred acquisition costs and intangibles		3			7			10			9			19			45
Interest expense		—			—			—			—			—			—

Total benefits and expenses		92			111			110			107			138			466

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		40			20			28			22			(5	)		65
Provision (benefit) for income taxes		9			4			6			5			(1	)		14

INCOME (LOSS) FROM CONTINUING OPERATIONS		31			16			22			17			(4	)		51

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		(2	)		5			3			13			13			34
Expenses related to restructuring		1			—			—			—			—			—
Taxes on adjustments		—			(1	)		(1	)		(2	)		(3	)		(7	)

ADJUSTED OPERATING INCOME	$	30		$	20		$	24		$	28		$	6		$	78


⁽¹⁾ Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	(3	)	$	7		$	3		$	16		$	16		$	42
Adjustment for DAC and other intangible amortization and certain benefit reserves		1			(2	)		—			(3	)		(3	)		(8	)

Net investment (gains) losses, net	$	(2	)	$	5		$	3		$	13		$	13		$	34

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Adjusted Operating Income (Loss)—Runoff Segment

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Net investment income	$	49		$	52		$	55		$	54		$	49		$	210
Net investment gains (losses)		(6	)		30			15			4			(75	)		(26	)
Policy fees and other income		33			32			33			32			33			130

Total revenues		76			114			103			90			7			314

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		8			17			7			4			20			48
Interest credited		41			41			42			42			41			166
Acquisition and operating expenses, net of deferrals		13			12			12			11			13			48
Amortization of deferred acquisition costs and intangibles		5			3			4			(1	)		17			23

Total benefits and expenses		67			73			65			56			91			285

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		9			41			38			34			(84	)		29
Provision (benefit) for income taxes		1			8			8			6			(18	)		4

INCOME (LOSS) FROM CONTINUING OPERATIONS		8			33			30			28			(66	)		25

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net⁽¹⁾		5			(25	)		(14	)		(5	)		67			23
Taxes on adjustments		(1	)		5			3			1			(14	)		(5	)

ADJUSTED OPERATING INCOME (LOSS)	$	12		$	13		$	19		$	24		$	(13	)	$	43


⁽¹⁾ Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	6		$	(30	)	$	(15	)	$	(4	)	$	75		$	26
Adjustment for DAC and other intangible amortization and certain benefit reserves		(1	)		5			1			(1	)		(8	)		(3	)

Net investment (gains) losses, net	$	5		$	(25	)	$	(14	)	$	(5	)	$	67		$	23

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Adjusted Operating Loss—Corporate and Other^(1),(2)

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	2		$	2		$	1		$	2		$	2		$	7
Net investment income		1			(6	)		5			2			5			6
Net investment gains (losses)		(2	)		(3	)		(10	)		(28	)		46			5
Policy fees and other income		—			—			(2	)		(1	)		1			(2	)

Total revenues		1			(7	)		(6	)		(25	)		54			16

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			1			—			2			1			4
Acquisition and operating expenses, net of deferrals		13			22			11			5			23			61
Amortization of deferred acquisition costs and intangibles		—			—			—			1			—			1
Interest expense		38			43			41			42			46			172

Total benefits and expenses		51			66			52			50			70			238

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(50	)		(73	)		(58	)		(75	)		(16	)		(222	)
Benefit for income taxes		(8	)		(22	)		(2	)		(15	)		—			(39	)

LOSS FROM CONTINUING OPERATIONS		(42	)		(51	)		(56	)		(60	)		(16	)		(183	)

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		2			3			10			28			(46	)		(5	)
(Gains) losses on early extinguishment of debt		4			—			—			(3	)		8			5
Expenses related to restructuring		7			—			—			1			1			2
Taxes on adjustments		(3	)		(1	)		(3	)		(5	)		8			(1	)

ADJUSTED OPERATING LOSS	$	(32	)	$	(49	)	$	(49	)	$	(39	)	$	(45	)	$	(182	)

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

⁽²⁾

Income (loss) from discontinued operations is considered part of Corporate and Other activities but is excluded from the above table. Income (loss) from discontinued operations on pages 8 and 9 herein include operating results of Genworth Australia that was sold on March 3, 2021 and amounts related to the company’s former lifestyle protection insurance business that was sold on December 1, 2015. Operating results of Genworth Australia reported as discontinued operations were as follows:


	2021			2020
	1Q			4Q			3Q		2Q		1Q			Total
REVENUES:
Premiums	$	51		$	72		$	71	$	62	$	69		$	274
Net investment income		4			8			7		7		11			33
Net investment gains (losses)		(5	)		29			24		66		(53	)		66
Policy fees and other income		—			—			—		—		1			1

Total revenues		50			109			102		135		28			374

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		11			88			26		39		24			177
Acquisition and operating expenses, net of deferrals		7			14			14		13		12			53
Amortization of deferred acquisition costs and intangibles		6			8			7		6		8			29
Goodwill impairment		—			—			—		5		—			5
Interest expense		1			2			2		2		1			7

Total benefits and expenses		25			112			49		65		45			271

INCOME (LOSS) BEFORE INCOME TAXES AND LOSS ON SALE		25			(3	)		53		70		(17	)		103
Provision (benefit) for income taxes		7			2			20		23		(5	)		40

INCOME (LOSS) BEFORE LOSS ON SALE		18			(5	)		33		47		(12	)		63
Loss on sale, net of taxes		(3	)		—			—		—		—			—

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES		15			(5	)		33		47		(12	)		63

Less: net income (loss) from discontinued operations attributable to noncontrolling interests		8			(1	)		18		23		(6	)		34

INCOME (LOSS) FROM DISCONTINUED OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	7		$		(4)	$	15	$	24	$		(6)	$	29

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Investments Summary

(amounts in millions)


		March 31, 2021					December 31, 2020					September 30, 2020					June 30, 2020					March 31, 2020
		Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total
Composition of Investment Portfolio
Fixed maturity securities:
Investment grade:
Public fixed maturity securities		$	33,376		47	%	$	35,678		46	%	$	34,742		45	%	$	34,868		46	%	$	32,313		45	%
Private fixed maturity securities			13,402		18			13,734		18			13,522		17			13,148		17			12,025		17
Residential mortgage-backed securities⁽¹⁾			1,766		2			1,900		2			2,042		3			2,151		3			2,243		3
Commercial mortgage-backed securities			2,770		4			2,955		4			2,957		4			2,952		4			2,963		4
Other asset-backed securities			2,806		4			3,076		4			3,028		4			2,708		4			2,873		4
State and political subdivisions			3,135		4			3,165		4			3,110		4			2,995		4			2,861		4
Non-investment grade fixed maturity securities			2,976		4			2,987		4			2,971		4			2,757		4			2,118		3
Equity securities:
Common stocks and mutual funds			155		—			296		—			475		1			52		—			49		—
Preferred stocks			83		—			90		—			100		—			102		—			97		—
Commercial mortgage loans, net			6,755		9			6,743		9			6,880		9			6,917		9			6,915		10
Policy loans			1,976		3			1,978		3			2,153		3			2,182		3			2,052		3
Cash, cash equivalents, restricted cash and short-term investments			1,981		3			2,606		3			2,788		3			2,629		3			2,499		4
Securities lending			68		—			67		—			75		—			59		—			58		—
Other invested assets:	Limited partnerships		1,160		2			1,049		1			844		1			764		1			671		1
	Derivatives:
	Interest rate swaps		84		—			468		1			708		1			939		1			1,002		1
	Foreign currency swaps		—		—			1		—			10		—			17		—			21		—
	Equity index options		53		—			63		—			67		—			66		—			62		—
	Other foreign currency contracts		27		—			42		—			17		—			—		—			11		—
	Other		350		—			364		1			402		1			411		1			420		1

Total invested assets and cash		$	72,923		100	%	$	77,262		100	%	$	76,891		100	%	$	75,717		100	%	$	71,253		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	8,308		20	%	$	9,252		21	%	$	9,409		21	%	$	10,292		24	%	$	10,691		26	%
AA			3,500		8			3,699		8			3,661		8			3,613		8			3,478		8
A			10,986		26			11,784		26			11,852		27			11,751		27			11,078		27
BBB			17,581		42			18,327		41			17,275		40			16,583		38			14,644		36
BB			1,579		4			1,634		4			1,607		4			1,496		3			1,130		3
B			69		—			74		—			71		—			73		—			50		—
CCC and lower			6		—			6		—			42		—			24		—			21		—

Total public fixed maturity securities		$	42,029		100	%	$	44,776		100	%	$	43,917		100	%	$	43,832		100	%	$	41,092		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	973		5	%	$	1,103		6	%	$	1,099		6	%	$	1,027		6	%	$	979		6	%
AA			1,882		10			2,020		11			2,010		11			1,957		11			1,825		11
A			5,188		29			5,482		29			5,377		29			5,179		29			4,792		29
BBB			8,837		49			8,841		47			8,718		47			8,420		47			7,791		48
BB			1,117		6			1,042		6			1,054		6			993		6			818		5
B			197		1			219		1			183		1			160		1			98		1
CCC and lower			8		—			12		—			14		—			11		—			1		—

Total private fixed maturity securities		$	18,202		100	%	$	18,719		100	%	$	18,455		100	%	$	17,747		100	%	$	16,304		100	%

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

⁽²⁾	Nationally Recognized Statistical Rating Organizations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Fixed Maturity Securities Summary

(amounts in millions)


	March 31, 2021					December 31, 2020					September 30, 2020					June 30, 2020					March 31, 2020
	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	$	4,273		7	%	$	4,805		8	%	$	4,792		8	%	$	5,602		9	%	$	5,771		10	%
State and political subdivisions		3,135		5			3,165		5			3,110		5			2,995		5			2,861		5
Foreign government		820		1			854		1			747		1			689		1			616		1
U.S. corporate		34,107		57			35,857		56			35,004		56			34,184		55			30,894		54
Foreign corporate		10,485		17			10,811		17			10,595		17			10,201		17			9,104		16
Residential mortgage-backed securities		1,774		3			1,909		3			2,075		3			2,184		4			2,273		4
Commercial mortgage-backed securities		2,794		5			2,974		5			2,976		5			2,970		5			2,981		5
Other asset-backed securities		2,843		5			3,120		5			3,073		5			2,754		4			2,896		5

Total fixed maturity securities	$	60,231		100	%	$	63,495		100	%	$	62,372		100	%	$	61,579		100	%	$	57,396		100	%

Corporate Bond Holdings—Industry Sector:

Investment Grade:
Finance and insurance	$	10,807		25	%	$	11,303		25	%	$	10,723		24	%	$	10,299		22	%	$	9,248		23	%
Utilities		5,736		13			6,019		13			5,985		13			6,000		14			5,518		14
Energy		3,417		8			3,496		7			3,337		7			3,170		7			2,782		7
Consumer - non-cyclical		6,545		15			6,977		15			6,867		15			6,744		15			6,089		15
Consumer - cyclical		1,922		4			1,944		4			2,043		4			2,004		5			1,797		4
Capital goods		3,275		7			3,431		7			3,485		8			3,469		8			3,040		8
Industrial		2,299		5			2,390		5			2,273		5			2,205		5			2,057		5
Technology and communications		4,376		10			4,589		10			4,258		9			4,150		9			3,905		10
Transportation		1,877		4			2,053		4			2,135		5			2,120		5			2,023		5
Other		1,516		3			1,639		4			1,702		4			1,664		4			1,576		4

Subtotal		41,770		94			43,841		94			42,808		94			41,825		94			38,035		95


Non-Investment Grade:
Finance and insurance		243		1			275		1			288		1			256		1			210		1
Utilities		94		—			97		—			95		—			97		—			76		—
Energy		712		1			767		2			738		2			673		2			389		1
Consumer - non-cyclical		243		1			233		—			219		—			217		—			195		1
Consumer - cyclical		389		1			374		1			347		1			295		1			223		1
Capital goods		152		—			136		—			152		—			130		—			148		—
Industrial		356		1			340		1			340		1			288		1			193		—
Technology and communications		488		1			463		1			451		1			434		1			416		1
Transportation		18		—			17		—			56		—			49		—			29		—
Other		127		—			125		—			105		—			121		—			84		—

Subtotal		2,822		6			2,827		6			2,791		6			2,560		6			1,963		5

Total	$	44,592		100	%	$	46,668		100	%	$	45,599		100	%	$	44,385		100	%	$	39,998		100	%

Fixed Maturity Securities - Contractual Maturity Dates:

Due in one year or less	$	1,291		2	%	$	1,305		2	%	$	1,375		2	%	$	1,406		2	%	$	1,255		2	%
Due after one year through five years		8,926		15			9,185		14			8,998		15			8,809		14			8,022		14
Due after five years through ten years		14,904		24			14,759		23			14,548		23			14,182		23			12,344		22
Due after ten years		27,699		46			30,243		48			29,327		47			29,274		48			27,625		48

Subtotal		52,820		87			55,492		87			54,248		87			53,671		87			49,246		86
Mortgage and asset-backed securities		7,411		13			8,003		13			8,124		13			7,908		13			8,150		14

Total fixed maturity securities	$	60,231		100	%	$	63,495		100	%	$	62,372		100	%	$	61,579		100	%	$	57,396		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

General Account U.S. GAAP Net Investment Income Yields

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
U.S. GAAP Net Investment Income
Fixed maturity securities - taxable	$	599		$	618		$	625		$	594		$	611		$	2,448
Fixed maturity securities - non-taxable		2			1			2			1			2			6
Equity securities		3			5			3			2			2			12
Commercial mortgage loans		78			94			82			84			85			345
Other invested assets		58			65			57			52			49			223
Limited partnerships		31			38			22			14			(2	)		72
Policy loans		50			50			51			49			49			199
Cash, cash equivalents, restricted cash and short-term investments		—			—			1			4			10			15

Gross investment income before expenses and fees		821			871			843			800			806			3,320
Expenses and fees		(20	)		(25	)		(23	)		(21	)		(24	)		(93	)

Net investment income	$	801		$	846		$	820		$	779		$	782		$	3,227

Annualized Yields
Fixed maturity securities - taxable		4.5	%		4.6	%		4.7	%		4.5	%		4.7	%		4.7	%
Fixed maturity securities - non-taxable		6.3	%		3.1	%		6.2	%		2.6	%		5.2	%		4.3	%
Equity securities		3.8	%		4.2	%		3.3	%		5.3	%		4.8	%		4.2	%
Commercial mortgage loans		4.6	%		5.5	%		4.8	%		4.9	%		4.9	%		5.0	%
Other invested assets⁽¹⁾		65.0	%		67.9	%		56.2	%		50.0	%		48.2	%		56.0	%
Limited partnerships⁽²⁾		11.2	%		16.1	%		10.9	%		7.8	%		(1.2	)%		9.1	%
Policy loans		10.1	%		9.7	%		9.4	%		9.3	%		9.5	%		9.5	%
Cash, cash equivalents, restricted cash and short-term investments		—	%		—	%		0.1	%		0.6	%		1.4	%		0.5	%

Gross investment income before expenses and fees		5.0	%		5.2	%		5.1	%		4.9	%		4.9	%		5.0	%
Expenses and fees		(0.2	)%		(0.1	)%		(0.2	)%		(0.1	)%		(0.1	)%		(0.1	)%

Net investment income		4.8	%		5.1	%		4.9	%		4.8	%		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 38 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 2021

Net Investment Gains (Losses), Net—Detail

(amounts in millions)


	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	4		$	7		$	2		$	2		$	2		$	13
U.S. government, agencies and government-sponsored enterprises		—			—			316			94			—			410
Foreign corporate		1			5			1			(1	)		—			5
Foreign government		—			—			—			1			—			1
Tax exempt		—			1			—			—			—			1
Mortgage-backed securities		(1	)		11			—			4			—			15
Asset-backed securities		—			(1	)		—			(2	)		—			(3	)

Total net realized gains (losses) on available-for-sale securities		4			23			319			98			2			442

Net change in allowance for credit losses on available-for-sale fixed maturity securities		(2	)		—			2			(7	)		—			(5	)
Write-down of available-for-sale fixed maturity securities		(1	)		—			(4	)		—			—			(4	)
Net realized gains (losses) on equity securities sold		(5	)		2			(3	)		—			—			(1	)
Net unrealized gains (losses) on equity securities still held		(8	)		8			3			5			(12	)		4
Limited partnerships		37			84			31			37			(40	)		112
Commercial mortgage loans		(1	)		—			(3	)		1			—			(2	)
Derivative instruments		8			26			9			(36	)		(48	)		(49	)
Other		1			4			(3	)		(5	)		(1	)		(5	)

Net investment gains (losses), gross		33			147			351			93			(99	)		492
Adjustment for DAC and other intangible amortization and certain benefit reserves		—			(3	)		(1	)		4			11			11

Net investment gains (losses), net	$	33		$	144		$	350		$	97		$	(88	)	$	503

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
U.S. GAAP Basis ROE	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	431		$	178		$	(106)		$	(506)		$	103
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income⁽²⁾	$	10,684		$	10,618		$	10,592		$	10,618		$	10,695
U.S. GAAP Basis ROE ^(1)/(2)		4.0	%		1.7	%		(1.0)	%		(4.8)	%		1.0	%

Operating ROE
Adjusted operating income for the twelve months ended⁽¹⁾	$	458		$	310		$	125		$	109		$	295
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income⁽²⁾	$	10,684		$	10,618		$	10,592		$	10,618		$	10,695
Operating ROE ^(1)/(2)		4.3	%		2.9	%		1.2	%		1.0	%		2.8	%

Quarterly Average ROE	Three months ended
U.S. GAAP Basis ROE	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	187		$	267		$	418		$	(441)		$	(66)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income⁽⁴⁾	$	10,988		$	10,754		$	10,406		$	10,415		$	10,693
Annualized U.S. GAAP Quarterly Basis ROE ^(3)/(4)		6.8	%		9.9	%		16.1	%		(16.9)	%		(2.5)	%

Operating ROE
Adjusted operating income (loss) for the period ended⁽³⁾	$	168		$	188		$	125		$	(23)		$	20
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income⁽⁴⁾	$	10,988		$	10,754		$	10,406		$	10,415		$	10,693
Annualized Operating Quarterly Basis ROE ^(3)/(4)		6.1	%		7.0	%		4.8	%		(0.9)	%		0.7	%

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 (loss) 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 (loss) 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 2021

Reconciliation of Reported Yield to Core Yield


		2021			2020
	(Assets - amounts in billions)		1Q			4Q			3Q			2Q			1Q			Total
	Reported - Total Invested Assets and Cash	$	72.9		$	77.3		$	76.9		$	75.7		$	71.3		$	77.3
	Subtract:
	Securities lending		0.1			0.1			0.1			0.1			0.1			0.1
	Unrealized gains (losses)		6.9			10.7			9.9			9.7			6.0			10.7

	Adjusted end of period invested assets and cash	$	65.9		$	66.5		$	66.9		$	65.9		$	65.2		$	66.5

(A)	Average Invested Assets and Cash Used in Reported and Core Yield Calculation	$	66.2		$	66.7		$	66.4		$	65.6		$	65.3		$	66.0

	(Income - amounts in millions)

(B)	Reported - Net Investment Income	$	801		$	846		$	820		$	779		$	782		$	3,227
	Subtract:
	Bond calls and commercial mortgage loan prepayments		15			40			23			8			16			87
	Other non-core items⁽¹⁾		2			6			6			2			7			21

(C)	Core Net Investment Income	$	784		$	800		$	791		$	769		$	759		$	3,119


(B) / (A)	Reported Yield		4.84	%		5.07	%		4.94	%		4.75	%		4.79	%		4.89	%
(C) / (A)	Core Yield		4.73	%		4.80	%		4.76	%		4.69	%		4.65	%		4.73	%

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 2021

Financial Strength Ratings As Of April 28, 2021


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 Life Insurance Company	N/A	N/A	C++ (Marginal)
Genworth Life and Annuity Insurance Company	N/A	N/A	B (Fair)
Genworth Life Insurance Company of New York	N/A	N/A	C++ (Marginal)

The 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 “BB” (Marginal) has marginal financial security characteristics. The “BB” range is the 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 “BB+” rating is the 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 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 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.