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Exhibit 99.2                

 

 


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

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 by Select Quarters

     8  

Reconciliation of Net Income to Adjusted Operating Income

     9  

Consolidated Balance Sheets

     10-11  

Consolidated Balance Sheets by Segment

     12-13  

Quarterly Results by Business

  

Adjusted Operating Income and Sales—Enact Segment

     15-20  

Adjusted Operating Income (Loss)—Long-Term Care Insurance Segment

     22  

Adjusted Operating Loss—Life and Annuities Segment

     24-27  

Adjusted Operating Loss—Corporate and Other

     29  

Additional Financial Data

  

Investments Summary

     31  

Fixed Maturity Securities Summary

     32  

U.S. GAAP Net Investment Income Yields

     33  

Net Investment Gains (Losses)—Detail

     34  

Reconciliations of Non-GAAP Measures

  

Reconciliation of Operating Return On Equity (ROE)

     36  

Reconciliation of Consolidated Expense Ratio

     37  

Reconciliation of Reported Yield to Core Yield

     38  

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.

 

2


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Dear Investor,

Beginning in the first quarter of 2023, the company changed its operating segments to better align with how it manages the business. All prior period information has been re-presented to reflect the reorganized segment reporting structure. Under the new structure, the company has the following three operating segments: Enact (mortgage insurance), Long-Term Care Insurance and Life and Annuities (which includes life insurance, fixed annuities and variable annuities). In addition, the company also has Corporate and Other, which includes debt financing expenses that are incurred at the Genworth Holdings, Inc. (Genworth Holdings) level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are reported outside of the operating segments, such as certain international businesses and discontinued operations. Corporate and Other also includes start-up results related to fee-based services, care support and advice, clinical assessments and consulting offered by CareScout LLC to advance the company’s senior care growth initiatives.

On January 1, 2023, the company also adopted new U.S. GAAP accounting guidance that significantly changed the recognition and measurement of long-duration insurance contracts, commonly known as long-duration targeted improvements (LDTI). This accounting guidance impacted the company’s long-term care insurance, life insurance and annuity products and was applied as of January 1, 2021, also known as the transition date. While the new guidance has had a significant impact on existing U.S. GAAP financial statements and disclosures, it does not impact the cash flows or underlying economics of the business, business strategy, statutory net income (loss), risk-based capital of the company’s U.S. life insurance companies, management of capital or the company’s Enact segment and Corporate and Other.

All prior period information has been re-presented to reflect the adoption of LDTI, and the quarterly financial supplement reflects a re-presented consolidated balance sheet and income statement for the fourth quarter and first quarter of 2022, respectively. The company is targeting to re-present the remaining quarters of 2022 by the time of its second quarter earnings announcement in early August.

All financial information in this financial supplement is based on the company’s implementation of LDTI and is currently unaudited. The information is being provided on an unaudited basis to assist investors and others in evaluating the impact of LDTI on the company’s financial position and results of operations. It is possible that the final audited financial results may differ, perhaps materially, from the information included in this financial supplement.

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

Regards,

Sarah E. Crews, Investor Relations

InvestorInfo@genworth.com

 

3


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

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), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items. 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. The company excludes net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating performance.

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 and are net of the portion attributable to noncontrolling interests. Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges are also adjusted for changes in reserves, attributed fees and benefit payments.

The company repurchased $11 million principal amount of Genworth Holdings’ senior notes due in June 2034 and $82 million principal amount of Genworth Holdings’ senior notes due in February 2024 in the first quarters of 2023 and 2022, respectively, for a pre-tax gain (loss) of $1 million and $(3) million, respectively. These transactions were excluded from adjusted operating income as they relate to gains (losses) on the early extinguishment of debt.

The company recorded a pre-tax expense of $3 million in the first quarter of 2023 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no other infrequent or unusual items excluded from adjusted operating income during the periods presented.

The table on page 9 of this financial supplement provides a reconciliation of net income 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 36 to 38 of this financial supplement.

 

4


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

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 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 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.

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. U.S. GAAP generally requires an annualized effective tax rate to be used for interim reporting periods, utilizing projections of full year results. However, in certain circumstances it is appropriate to record the actual effective tax rate for the period if a reliable full year estimate cannot be made. For the three months ended March 31, 2023, the company utilized the actual effective tax rate for the interim period to record the provision for income taxes for its Long-Term Care Insurance and Life and Annuities segments and the annualized projected effective tax rate for its Enact segment and Corporate and Other. The company utilized the effective tax rate for the year ended December 31, 2022 in determining the re-presented provision for income taxes for the three months ended March 31, 2022.

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 included in the company’s Enact segment. The company considers new insurance written to be a measure of the operating performance of its Enact segment because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of revenues or profitability during that period.

Management regularly monitors and reports insurance in-force, risk in-force and a loss ratio for the company’s Enact segment. Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans insured by the company’s U.S. mortgage insurance subsidiaries. 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 the operating performance of its Enact segment 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. The loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance and helps to enhance the understanding of the operating performance of the Enact segment.

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.

 

5


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Financial Highlights

(amounts in millions, except per share data)

 

Balance Sheet Data

   March 31,
        2023        
    March 31,
        2022        
 

Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)

   $ 10,290     $ 9,548  

Total accumulated other comprehensive income (loss)(1)

     (2,858     (4,564
  

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

   $ 7,432     $ 4,984  
  

 

 

   

 

 

 

Book value per share

   $ 15.26     $ 9.77  

Book value per share, excluding accumulated other comprehensive income (loss)

   $ 21.13     $ 18.71  

Common shares outstanding as of the balance sheet date

     486.9       510.3  
     Three months ended  

Quarterly Average ROE

   March 31,
2023
    March 31,
2022
 

U.S. GAAP Basis ROE

     2.4     8.1

Operating ROE(2)

     3.3     5.1

Basic and Diluted Shares

   Three months ended
March 31, 2023
       

Weighted-average common shares used in basic earnings per share calculations

     492.3    

Potentially dilutive securities:

    

Stock options, restricted stock units and other equity-based awards

     7.8    
  

 

 

   

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

     500.1    
  

 

 

   

 

(1) 

As of March 31, 2023 and 2022, total accumulated other comprehensive income (loss) includes $(1,633) million and $(8,462) million, net of taxes, respectively, related to changes in the current discount rate used to remeasure the liability for future policy benefits and related reinsurance recoverables, of which $(1,227) million and $5,482 million, net of taxes, is attributable to changes during the first quarters of 2023 and 2022, respectively.

(2) 

See page 36 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.

 

6


Consolidated Quarterly Results

  

 

 

 

7


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

Consolidated Net Income by Select Quarters

(amounts in millions, except per share amounts)

 

     2023      2022  
     1Q      1Q  

REVENUES:

       

Premiums

   $ 915      $ 917  

Net investment income

     787        764  

Net investment gains (losses)

     (11      42  

Policy fees and other income

     163        170  
  

 

 

    

 

 

 

Total revenues

     1,854        1,893  
  

 

 

    

 

 

 

BENEFITS AND EXPENSES:

       

Benefits and other changes in policy reserves

     1,172        1,165  

Liability remeasurement (gains) losses

     22        (41

Changes in fair value of market risk benefits and associated hedges

     17        (41

Interest credited

     126        125  

Acquisition and operating expenses, net of deferrals

     283        280  

Amortization of deferred acquisition costs and intangibles

     72        88  

Interest expense

     29        26  
  

 

 

    

 

 

 

Total benefits and expenses

     1,721        1,602  
  

 

 

    

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     133        291  

Provision for income taxes

     39        68  
  

 

 

    

 

 

 

INCOME FROM CONTINUING OPERATIONS

     94        223  

Loss from discontinued operations, net of taxes(1)

     —          (2
  

 

 

    

 

 

 

NET INCOME

     94        221  

Less: net income from continuing operations attributable to noncontrolling interests

     32        30  

Less: net income from discontinued operations attributable to noncontrolling interests

     —          —    
  

 

 

    

 

 

 

NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS

   $ 62      $ 191  
  

 

 

    

 

 

 

NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:

       

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

   $ 62      $ 193  

Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders

     —          (2
  

 

 

    

 

 

 

NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS

   $ 62      $ 191  
  

 

 

    

 

 

 
           

Earnings Per Share Data:

     

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

     

Basic

   $ 0.13      $ 0.38  

Diluted

   $ 0.12      $ 0.37  

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

     

Basic

   $ 0.13      $ 0.38  

Diluted

   $ 0.12      $ 0.37  

Weighted-average common shares outstanding

     

Basic

     492.3        508.3  

Diluted

     500.1        517.4  

 

(1) 

Loss from discontinued operations primarily relates to a settlement agreement involving the company’s former lifestyle protection insurance business that was sold on December 1, 2015.

 

8


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Reconciliation of Net Income to Adjusted Operating Income

(amounts in millions, except per share amounts)

 

     2023      2022  
     1Q      1Q  

NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS

   $ 62      $ 191  

Add: net income from continuing operations attributable to noncontrolling interests

     32        30  

Add: net income from discontinued operations attributable to noncontrolling interests

     —          —    
  

 

 

    

 

 

 

NET INCOME

     94        221  

Less: loss from discontinued operations, net of taxes

     —          (2
  

 

 

    

 

 

 

INCOME FROM CONTINUING OPERATIONS

     94        223  

Less: net income from continuing operations attributable to noncontrolling interests

     32        30  
  

 

 

    

 

 

 

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS

     62        193  
 

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:

       

Net investment (gains) losses

     11        (42

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges(1)

     14        (54

(Gains) losses on early extinguishment of debt

     (1      3  

Expenses related to restructuring

     3        —    

Taxes on adjustments

     (5      20  
  

 

 

    

 

 

 

ADJUSTED OPERATING INCOME

   $ 84      $ 120  
  

 

 

    

 

 

 

ADJUSTED OPERATING INCOME (LOSS):

       

Enact segment

   $ 143      $ 135  

Long-Term Care Insurance segment

     (37      27  

Life and Annuities segment:

       

Life Insurance

     (27      (47

Fixed Annuities

     14        13  

Variable Annuities

     9        4  
  

 

 

    

 

 

 

Total Life and Annuities segment

     (4      (30
  

 

 

    

 

 

 

Corporate and Other

     (18      (12
  

 

 

    

 

 

 

ADJUSTED OPERATING INCOME

   $ 84      $ 120  
  

 

 

    

 

 

 
           

Earnings Per Share Data:

     

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

     

Basic

   $ 0.13      $ 0.38  

Diluted

   $ 0.12      $ 0.37  

Adjusted operating income per share

     

Basic

   $ 0.17      $ 0.24  

Diluted

   $ 0.17      $ 0.23  

Weighted-average common shares outstanding

     

Basic

     492.3        508.3  

Diluted

     500.1        517.4  

 

(1) 

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges were adjusted for changes in reserves, attributed fees and benefit payments (see page 24 for reconciliation).

 

9


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Consolidated Balance Sheets

(amounts in millions)

 

     March 31,
2023
     December 31,
2022
 

ASSETS

       

Investments:

       

Fixed maturity securities available-for-sale, at fair value(1)

   $ 47,381      $ 46,583  

Equity securities, at fair value

     364        319  

Commercial mortgage loans(2)

     6,915        7,032  

Less: Allowance for credit losses

     (24      (22
  

 

 

    

 

 

 

Commercial mortgage loans, net

     6,891        7,010  

Policy loans

     2,133        2,139  

Limited partnerships

     2,456        2,331  

Other invested assets

     617        566  
  

 

 

    

 

 

 

Total investments

     59,842        58,948  

Cash, cash equivalents and restricted cash

     1,752        1,799  

Accrued investment income

     700        643  

Deferred acquisition costs

     2,150        2,211  

Intangible assets

     203        203  

Reinsurance recoverable

     19,606        19,059  

Less: Allowance for credit losses

     (64      (63
  

 

 

    

 

 

 

Reinsurance recoverable, net

     19,542        18,996  

Other assets

     478        488  

Deferred tax asset

     2,004        1,968  

Market risk benefit assets

     28        26  

Separate account assets

     4,479        4,417  
  

 

 

    

 

 

 

Total assets

   $ 91,178      $ 89,699  
  

 

 

    

 

 

 
           

 

(1) 

Amortized cost of $50,461 million and $50,834 million, respectively, and allowance for credit losses of $15 million and $—, respectively, as of March 31, 2023 and December 31, 2022.

(2) 

Net of unamortized balance of loan origination fees and costs of $4 million as of March 31, 2023 and December 31, 2022.

 

10


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Consolidated Balance Sheets

(amounts in millions)

 

     March 31,
2023
     December 31,
2022
 

LIABILITIES AND EQUITY

       

Liabilities:

       

Future policy benefits

   $ 57,558      $ 55,349  

Policyholder account balances

     16,202        16,564  

Market risk benefit liabilities

     761        748  

Liability for policy and contract claims

     665        683  

Unearned premiums

     189        203  

Other liabilities

     1,492        1,675  

Long-term borrowings

     1,600        1,611  

Separate account liabilities

     4,479        4,417  

Liabilities related to discontinued operations(1)

     7        8  
  

 

 

    

 

 

 

Total liabilities

     82,953        81,258  
  

 

 

    

 

 

 

Equity:

       

Common stock

     1        1  

Additional paid-in capital

     11,863        11,869  

Accumulated other comprehensive income (loss):

       

Change in the discount rate used to measure future policy benefits(2)

     (1,633      (406

All other

     (1,225      (2,211
  

 

 

    

 

 

 

Total accumulated other comprehensive income (loss)

     (2,858      (2,617

Retained earnings

     1,259        1,197  

Treasury stock, at cost

     (2,833      (2,764
  

 

 

    

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

     7,432        7,686  

Noncontrolling interests

     793        755  
  

 

 

    

 

 

 

Total equity

     8,225        8,441  
  

 

 

    

 

 

 

Total liabilities and equity

   $ 91,178      $ 89,699  
  

 

 

    

 

 

 
           

 

(1) 

Liabilities related to discontinued operations relates to a liability recorded in connection with a settlement agreement reached with AXA and other unrelated liabilities involving the sale of the company’s former lifestyle protection insurance business.    

(2) 

The accumulated change in the current discount rate used to remeasure the liability for future policy benefits and related reinsurance recoverables includes $(1,227) million and $13,538 million, net of taxes, of (decreases) increases to accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and the year ended December 31, 2022, respectively.     

 

11


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Consolidated Balance Sheet by Segment

(amounts in millions)

 

     March 31, 2023  
     Enact     Long-Term
Care Insurance
    Life and
Annuities
    Corporate
and
Other(1)
    Total  

ASSETS

          

Cash and investments

   $ 5,611     $ 35,210     $ 20,112     $ 1,361     $ 62,294  

Deferred acquisition costs and intangible assets

     36       945       1,360       12       2,353  

Reinsurance recoverable, net

     —         7,604       11,938       —         19,542  

Deferred tax and other assets

     194       1,763       214       311 (2)      2,482  

Market risk benefit assets

     —         —         28       —         28  

Separate account assets

     —         —         4,479       —         4,479  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 5,841     $ 45,522     $ 38,131     $ 1,684     $ 91,178  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

          

Liabilities:

          

Future policy benefits

   $ —       $ 43,371     $ 14,187     $ —       $ 57,558  

Policyholder account balances

     —         —         16,202       —         16,202  

Market risk benefit liabilities

     —         —         761       —         761  

Liability for policy and contract claims

     502       —         157       6       665  

Unearned premiums

     189       —         —         —         189  

Other liabilities

     100       658       287       447       1,492  

Borrowings

     743       —         —         857       1,600  

Separate account liabilities

     —         —         4,479       —         4,479  

Liabilities related to discontinued operations

     —         —         —         7       7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     1,534       44,029       36,073       1,317       82,953  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

          

Allocated equity, excluding accumulated other comprehensive income (loss)

     3,776       2,632       3,034       848       10,290  

Allocated accumulated other comprehensive income (loss)

     (262     (1,139     (976     (481     (2,858
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

     3,514       1,493       2,058       367       7,432  

Noncontrolling interests

     793       —         —         —         793  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     4,307       1,493       2,058       367       8,225  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 5,841     $ 45,522     $ 38,131     $ 1,684     $ 91,178  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Includes inter-segment eliminations and other businesses, including start-up growth initiatives and certain international businesses, that are managed outside the operating segments.

(2) 

Deferred tax and other assets in Corporate and Other includes holding company deferred tax assets of $174 million (comprised of Genworth Financial, Inc. and Genworth Holdings).

 

12


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Consolidated Balance Sheet by Segment

(amounts in millions)

 

     December 31, 2022  
     Enact     Long-Term
Care Insurance
    Life and
Annuities
    Corporate
and
Other(1)
    Total  

ASSETS

          

Cash and investments

   $ 5,458     $ 34,334     $ 20,120     $ 1,478     $ 61,390  

Deferred acquisition costs and intangible assets

     35       959       1,413       7       2,414  

Reinsurance recoverable, net

           7,301       11,695       —         18,996  

Deferred tax and other assets

     219       1,547       304       386 (2)      2,456  

Market risk benefit assets

     —         —         26       —         26  

Separate account assets

     —         —         4,417       —         4,417  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 5,712     $ 44,141     $ 37,975     $ 1,871     $ 89,699  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

          

Liabilities:

          

Future policy benefits

   $ —       $ 41,399     $ 13,950     $ —       $ 55,349  

Policyholder account balances

     —         —         16,564       —         16,564  

Market risk benefit liabilities

     —         —         748       —         748  

Liability for policy and contract claims

     519       —         158       6       683  

Unearned premiums

     203       —         —         —         203  

Other liabilities

     136       770       284       485       1,675  

Borrowings

     743       —         —         868       1,611  

Separate account liabilities

     —         —         4,417       —         4,417  

Liabilities related to discontinued operations

     —         —         —         8       8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     1,601       42,169       36,121       1,367       81,258  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

          

Allocated equity, excluding accumulated other comprehensive income (loss)

     3,669       2,615       3,030       989       10,303  

Allocated accumulated other comprehensive income (loss)

     (313     (643     (1,176     (485     (2,617
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

     3,356       1,972       1,854       504       7,686  

Noncontrolling interests

     755       —         —         —         755  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     4,111       1,972       1,854       504       8,441  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 5,712     $ 44,141     $ 37,975     $ 1,871     $ 89,699  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Includes inter-segment eliminations and other businesses, including start-up growth initiatives and certain international businesses, that are managed outside the operating segments.     

(2) 

Deferred tax and other assets in Corporate and Other includes holding company deferred tax assets of $231 million (comprised of Genworth Financial, Inc. and Genworth Holdings).

 

13


 

Enact Segment

                      

 

 

 

14


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

Adjusted Operating Income and Sales—Enact Segment

(amounts in millions)

 

     2023      2022  
     1Q      4Q     3Q     2Q     1Q     Total  

REVENUES:

               

Premiums

   $ 235      $ 233     $ 235     $ 238     $ 234     $ 940  

Net investment income

     46        45       39       36       35       155  

Net investment gains (losses)

     —          (1     —         (1     —         (2

Policy fees and other income

     —          —         1       —         1       2  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     281        277       275       273       270       1,095  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

               

Benefits and other changes in policy reserves

     (11      18       (40     (62     (10     (94

Acquisition and operating expenses, net of deferrals

     52        60       55       58       54       227  

Amortization of deferred acquisition costs and intangibles

     3        2       4       3       3       12  

Interest expense

     13        14       12       13       13       52  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     57        94       31       12       60       197  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     224        183       244       261       210       898  

Provision for income taxes

     49        39       53       57       45       194  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS

     175        144       191       204       165       704  

Less: net income from continuing operations attributable to noncontrolling interests

     32        27       35       38       30       130  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS

     143        117       156       166       135       574  
 

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:

               

Net investment (gains) losses

     —          1       —         1       —         2  

Expenses related to restructuring

     —          3       —         —         —         3  

Taxes on adjustments

     —          (1     —         —         —         (1
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 143      $ 120     $ 156     $ 167     $ 135     $ 578  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   

SALES:

             

Primary New Insurance Written (NIW)

   $ 13,154      $ 15,145     $ 15,069     $ 17,448     $ 18,823     $ 66,485  
                   

 

15


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Primary New Insurance Written Metrics—Enact Segment

(amounts in millions)

 

     2023      2022  
     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
 

Payment Type

                            

Monthly

   $ 12,809        97    $ 13,745        91   $ 14,138        94   $ 16,169        93   $ 17,071        91

Single

     318        3        1,368        9       890        6       1,218        7       1,690        9  

Other(1)

     27        —          32        —         41        —         61        —         62        —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 13,154        100    $ 15,145        100   $ 15,069        100   $ 17,448        100   $ 18,823        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Origination

                            

Purchase

   $ 12,761        97    $ 14,744        97   $ 14,634        97   $ 16,802        96   $ 17,326        92

Refinance

     393        3        401        3       435        3       646        4       1,497        8  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 13,154        100    $ 15,145        100   $ 15,069        100   $ 17,448        100   $ 18,823        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

FICO Scores

                            

Over 760

   $ 6,004        46    $ 6,951        46   $ 6,948        46   $ 7,981        45   $ 8,359        45

740 - 759

     2,268        17        2,709        18       2,554        17       2,916        17       3,085        16  

720 - 739

     1,817        14        2,226        15       2,106        14       2,530        15       2,515        13  

700 - 719

     1,296        10        1,489        10       1,531        10       1,917        11       1,952        10  

680 - 699

     954        7        1,035        7       1,085        7       1,099        6       1,316        7  

660 - 679(2)

     517        4        478        3       527        3       598        3       931        5  

640 - 659

     229        2        189        1       234        2       297        2       486        3  

620 - 639

     65        —          66        —         79        1       106        1       173        1  

<620

     4        —          2        —         5        —         4        —         6        —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 13,154        100    $ 15,145        100   $ 15,069        100   $ 17,448        100   $ 18,823        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Loan-To-Value Ratio

                            

95.01% and above

   $ 2,106        16    $ 2,423        16   $ 1,741        11   $ 2,177        12   $ 3,146        17

90.01% to 95.00%

     4,928        38        5,684        37       6,184        41       7,458        43       6,682        35  

85.01% to 90.00%

     4,390        33        4,971        33       5,094        34       5,207        30       5,620        30  

85.00% and below

     1,730        13        2,067        14       2,050        14       2,606        15       3,375        18  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 13,154        100    $ 15,145        100   $ 15,069        100   $ 17,448        100   $ 18,823        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Debt-To-Income Ratio

                            

45.01% and above

   $ 3,538        27    $ 4,294        28   $ 3,728        25   $ 4,067        23   $ 4,452        24

38.01% to 45.00%

     4,940        38        5,518        37       5,681        38       6,436        37       6,361        34  

38.00% and below

     4,676        35        5,333        35       5,660        37       6,945        40       8,010        42  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 13,154        100    $ 15,145        100   $ 15,069        100   $ 17,448        100   $ 18,823        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
                                      

 

(1) 

Includes loans with annual and split payment types.

(2) 

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

 

16


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Other Metrics—Enact Segment

(dollar amounts in millions)

 

    2023      2022  
    1Q      4Q     3Q     2Q     1Q     Total  
 

Primary Insurance In-Force(1)

  $ 252,516      $ 248,262     $ 241,813     $ 237,563     $ 231,853    
 

Risk In-Force

              

Primary(2)

  $ 64,106      $ 62,791     $ 61,124     $ 59,911     $ 58,295    

Pool

    76        79       84       89       97    
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

Total Risk In-Force

  $ 64,182      $ 62,870     $ 61,208     $ 60,000     $ 58,392    
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   
 

Expense Ratio(3)

    23      27     25     26     24     25
 

Primary Persistency Rate

    85      86     82     80     76     80
 

Combined Risk To Capital Ratio(4)

    12.6:1        12.8:1       12.3:1       12.6:1       12.0:1    
 

EMICO Risk To Capital Ratio(4),(5)

    12.7:1        12.9:1       12.3:1       12.6:1       12.1:1    
 

PMIERs Available Assets(6)

  $ 5,357      $ 5,206     $ 5,292     $ 5,147     $ 5,222    
 

PMIERs Required Assets(6)

  $ 3,259      $ 3,156     $ 3,043     $ 3,100     $ 2,961    
 

Available Assets Above PMIERs Requirements(6)

  $ 2,098      $ 2,050     $ 2,249     $ 2,047     $ 2,261    
 

PMIERs Sufficiency Ratio(6)

    164      165     174     166     176  
 

Average Primary Loan Size (in thousands)

  $ 262      $ 259     $ 255     $ 251     $ 246    

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 balance for loans the company’s U.S. mortgage insurance subsidiaries insure.

(2) 

Primary risk in-force represents risk on current loan balances as provided by servicers, lenders and investors.

(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 company’s U.S. mortgage insurance subsidiaries.

(5) 

Enact Mortgage Insurance Corporation (EMICO), the company’s principal U.S. mortgage insurance subsidiary.

(6) 

The Private Mortgage Insurer Eligibility Requirements (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. The PMIERs sufficiency ratios for the four quarters of 2022 did not take into consideration the impact of restrictions previously imposed by the government-sponsored enterprises on EMICO.

 

17


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Loss Metrics—Enact Segment

(amounts in millions)

 

     2023      2022  
     1Q      4Q     3Q     2Q     1Q     Total  

Average Paid Claim (in thousands)(1)

   $ 46.9      $ 48.7     $ 42.2     $ 50.1     $ 51.6    

Average Reserve Per Primary Delinquency (in thousands)(2)

   $ 24.8      $ 24.0     $ 25.2     $ 27.0     $ 26.2    
 

Reserves:

               

Direct primary case

   $ 462      $ 479     $ 476     $ 526     $ 591    

All other(3)

     40        40       34       33       34    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

Total Reserves

   $ 502      $ 519     $ 510     $ 559     $ 625    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   
 

Beginning Reserves

   $ 519      $ 510     $ 559     $ 625     $ 641     $ 641  

Paid claims

     (6      (9     (9     (4     (6     (28

Increase (decrease) in reserves

     (11      18       (40     (62     (10     (94
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending Reserves

   $ 502      $ 519     $ 510     $ 559     $ 625     $ 519  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss Ratio(4)

     (5 )%       8     (17 )%      (26 )%      (4 )%      (10 )% 
                   

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) 

Average paid claim in the fourth and third quarters of 2022 includes payments in relation to agreements on non-performing loans.

(2) 

Direct primary case reserves divided by primary delinquency count.

(3) 

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

(4) 

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

 

18


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Delinquency Metrics—Enact Segment

(dollar amounts in millions)

 

     2023      2022  
     1Q      4Q     3Q     2Q     1Q     Total  

Primary Loans

               

Primary loans in-force

     965,544        960,306       949,052       946,891       941,689    

Primary delinquent loans

     18,633        19,943       18,856       19,513       22,571    

Primary delinquency rate

     1.93      2.08     1.99     2.06     2.40  
 

Beginning Number of Primary Delinquencies

     19,943        18,856       19,513       22,571       24,820       24,820  

New delinquencies

     9,599        10,304       9,121       7,847       8,724       35,996  

Delinquency cures

     (10,771      (9,024     (9,588     (10,806     (10,860     (40,278

Paid claims

     (126      (190     (187     (90     (107     (574

Rescissions and claim denials

     (12      (3     (3     (9     (6     (21
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending Number of Primary Delinquencies

     18,633        19,943       18,856       19,513       22,571       19,943  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Composition of Cures

               

Reported delinquent and cured-intraquarter

     2,016        1,489       1,598       1,306       1,581    

Number of missed payments delinquent prior to cure:

               

3 payments or less

     5,238        4,179       3,719       4,037       3,902    

4 - 11 payments

     2,431        2,001       2,279       2,484       2,315    

12 payments or more

     1,086        1,355       1,992       2,979       3,062    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

Total

     10,771        9,024       9,588       10,806       10,860    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

Primary Delinquencies by Missed Payment Status

               

3 payments or less

     7,876        8,920       7,446       6,442       6,837    

4 - 11 payments

     6,714        6,466       6,119       6,372       6,875    

12 payments or more

     4,043        4,557       5,291       6,699       8,859    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

Primary Delinquencies

     18,633        19,943       18,856       19,513       22,571    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   
                   
             
     March 31, 2023                    

Direct Primary Case Reserves(1) and Percentage

Reserved by Payment Status

   Direct Primary
Case Reserves
     Risk
In-Force
    Reserves as % of
Risk In-Force
                   

3 payments or less in default

   $ 67      $ 462       14      

4 - 11 payments in default

     182        423       43      

12 payments or more in default

     213        220       97      
  

 

 

    

 

 

         

Total

   $ 462      $ 1,105       42      
  

 

 

    

 

 

         
     December 31, 2022                    

Direct Primary Case Reserves(1) and Percentage

Reserved by Payment Status

   Direct Primary
Case Reserves
     Risk
In-Force
    Reserves as % of
Risk In-Force
                   

3 payments or less in default

   $ 69      $ 509       14      

4 - 11 payments in default

     166        390       43      

12 payments or more in default

     244        248       98      
  

 

 

    

 

 

         

Total

   $ 479      $ 1,147       42      
  

 

 

    

 

 

         

 

(1) 

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

 

19


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Portfolio Quality Metrics—Enact Segment

(amounts in millions)

 

     March 31, 2023  

Policy Year

   % of Direct
Primary Case
Reserves
(1)
    Primary Insurance
In-Force
    % of Total     Primary Risk
In-Force
    % of Total     Delinquency
Rate
 

2008 and prior

     25   $ 6,377       3   $ 1,643       3     8.81

2009-2015

     7       4,659       2       1,238       2       4.03

2016

     5       5,744       2       1,538       2       3.01

2017

     6       6,201       2       1,632       3       3.53

2018

     7       6,570       3       1,672       3       4.08

2019

     10       15,691       6       3,989       6       2.57

2020

     16       52,389       21       13,484       21       1.42

2021

     18       79,377       31       19,917       31       1.23

2022

     6       62,481       25       15,647       24       0.74

2023

     —         13,027           5       3,346           5       0.02
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total

     100   $ 252,516       100   $ 64,106       100     1.93
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
     March 31, 2023     December 31, 2022     March 31, 2022  
     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

   $ 11,545       18   $ 11,136       18   $ 10,379       18

90.01% to 95.00%

     30,589       48       30,079       48       27,987       48  

85.01% to 90.00%

     18,054       28       17,621       28       16,082       27  

85.00% and below

     3,918           6       3,955           6       3,847           7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 64,106       100   $ 62,791       100   $ 58,295       100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     March 31, 2023     December 31, 2022     March 31, 2022  
     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

   $ 26,480       41   $ 25,807       41   $ 23,326       40

740 - 759

     10,418       16       10,154       16       9,267       16  

720 - 739

     9,126       14       8,931       14       8,224       14  

700 - 719

     7,406       12       7,317       12       6,974       12  

680 - 699

     5,481       9       5,428       9       5,334       9  

660 - 679(2)

     2,809       4       2,767       5       2,715       5  

640 - 659

     1,549       3       1,540       2       1,550       3  

620 - 639

     660       1       665       1       699       1  

<620

     177       —         182       —         206       —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 64,106       100   $ 62,791       100   $ 58,295       100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

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

(2) 

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

 

20


 

Long-Term Care Insurance Segment

                      

 

 

 

21


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Adjusted Operating Income (Loss)—Long-Term Care Insurance Segment

(amounts in millions)

 

     2023      2022  
     1Q      1Q  

REVENUES:

       

Premiums

   $ 616      $ 607  

Net investment income

     473        447  

Net investment gains (losses)

     9        41  
  

 

 

    

 

 

 

Total revenues

     1,098        1,095  
  

 

 

    

 

 

 

BENEFITS AND EXPENSES:

       

Benefits and other changes in policy reserves

     940        923  

Liability remeasurement (gains) losses

     5        (65

Acquisition and operating expenses, net of deferrals

     162        140  

Amortization of deferred acquisition costs and intangibles

     18        19  
  

 

 

    

 

 

 

Total benefits and expenses

     1,125        1,017  
  

 

 

    

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (27)        78  

Provision for income taxes

     2        19  
  

 

 

    

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     (29)        59  
 

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

       

Net investment (gains) losses

     (9      (41

Expenses related to restructuring

     (1      —    

Taxes on adjustments

     2        9  
  

 

 

    

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

   $ (37    $ 27  
  

 

 

    

 

 

 
           
           

Gross Benefits Ratio(1)

     153%        152

 

(1) 

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

 

22


 

Life and Annuities Segment

                      

 

23


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

Adjusted Operating Loss—Life and Annuities Segment

(amounts in millions)

 

     2023      2022  
     1Q      1Q  

REVENUES:

       

Premiums

   $ 62      $ 74  

Net investment income

     264        279  

Net investment gains (losses)

     (10)        14  

Policy fees and other income

     163        169  
  

 

 

    

 

 

 

Total revenues

     479        536  
  

 

 

    

 

 

 

BENEFITS AND EXPENSES:

       

Benefits and other changes in policy reserves

     246        255  

Liability remeasurement (gains) losses

     17        24  

Changes in fair value of market risk benefits and associated hedges

     17        (41

Interest credited

     126        125  

Acquisition and operating expenses, net of deferrals

     53        77  

Amortization of deferred acquisition costs and intangibles

     51        66  
  

 

 

    

 

 

 

Total benefits and expenses

     510        506  
  

 

 

    

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (31)        30  

Provision (benefit) for income taxes

     (7)        6  
  

 

 

    

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     (24)        24  
 

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

       

Net investment (gains) losses

     10        (14

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges(1)

     14        (54

Taxes on adjustments

     (4      14  
  

 

 

    

 

 

 

ADJUSTED OPERATING LOSS

   $ (4    $ (30
  

 

 

    

 

 

 
           

 

(1)  Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges were adjusted for changes in reserves, attributed fees and benefit payments as reconciled below:

   

Changes in fair value of market risk benefits and associated hedges

   $ 17      $ (41

Adjustment for changes in reserves, attributed fees and benefit payments

     (3      (13
  

 

 

    

 

 

 

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges

   $ 14      $ (54
  

 

 

    

 

 

 

 

24


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Adjusted Operating Loss—Life and Annuities Segment—Life Insurance

(amounts in millions)

 

     2023      2022  
     1Q      1Q  

REVENUES:

       

Premiums

   $ 62      $ 74  

Net investment income

     164        164  

Net investment gains (losses)

     (2      9  

Policy fees and other income

     134        134  
  

 

 

    

 

 

 

Total revenues

     358        381  
  

 

 

    

 

 

 

BENEFITS AND EXPENSES:

       

Benefits and other changes in policy reserves

     199        203  

Liability remeasurement (gains) losses

     18        22  

Interest credited

     98        94  

Acquisition and operating expenses, net of deferrals

     36        56  

Amortization of deferred acquisition costs and intangibles

     44        57  
  

 

 

    

 

 

 

Total benefits and expenses

     395        432  
  

 

 

    

 

 

 

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (37      (51

Benefit for income taxes

     (8      (11
  

 

 

    

 

 

 

LOSS FROM CONTINUING OPERATIONS

     (29      (40
 

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:

       

Net investment (gains) losses

     2        (9

Taxes on adjustments

     —          2  
  

 

 

    

 

 

 

ADJUSTED OPERATING LOSS

   $ (27    $ (47
  

 

 

    

 

 

 
           

 

25


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

 

Adjusted Operating Income—Life and Annuities Segment—Fixed Annuities

(amounts in millions)

 

     2023      2022  
     1Q      1Q  

REVENUES:

       

Net investment income

   $ 91      $ 108  

Net investment gains (losses)

     (8      5  

Policy fees and other income

     2        2  
  

 

 

    

 

 

 

Total revenues

     85        115  
  

 

 

    

 

 

 

BENEFITS AND EXPENSES:

       

Benefits and other changes in policy reserves

     39        46  

Liability remeasurement (gains) losses

     (1      2  

Changes in fair value of market risk benefits and associated hedges

     8        (13

Interest credited

     27        30  

Acquisition and operating expenses, net of deferrals

     8        9  

Amortization of deferred acquisition costs and intangibles

     3        4  
  

 

 

    

 

 

 

Total benefits and expenses

     84        78  
  

 

 

    

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     1        37  

Provision for income taxes

     —          8  
  

 

 

    

 

 

 

INCOME FROM CONTINUING OPERATIONS

     1        29  
 

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:

       

Net investment (gains) losses

     8        (5

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges(1)

     8        (15

Taxes on adjustments

     (3      4  
  

 

 

    

 

 

 

ADJUSTED OPERATING INCOME

   $ 14      $ 13  
  

 

 

    

 

 

 
           

 

(1)  Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges were adjusted for changes in reserves, attributed fees and benefit payments as reconciled below:

   

Changes in fair value of market risk benefits and associated hedges

   $ 8      $ (13

Adjustment for changes in reserves, attributed fees and benefit payments

     —          (2
  

 

 

    

 

 

 

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges

   $ 8      $ (15
  

 

 

    

 

 

 

 

26


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

 

Adjusted Operating Income—Life and Annuities Segment—Variable Annuities

(amounts in millions)

 

     2023      2022  
     1Q      1Q  

REVENUES:

       

Net investment income

   $ 9      $ 7  

Net investment gains (losses)

     —          —    

Policy fees and other income

     27        33  
  

 

 

    

 

 

 

Total revenues

     36        40  
  

 

 

    

 

 

 

BENEFITS AND EXPENSES:

       

Benefits and other changes in policy reserves

     8        6  

Changes in fair value of market risk benefits and associated hedges

     9        (28

Interest credited

     1        1  

Acquisition and operating expenses, net of deferrals

     9        12  

Amortization of deferred acquisition costs and intangibles

     4        5  
  

 

 

    

 

 

 

Total benefits and expenses

     31        (4
  

 

 

    

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     5        44  

Provision for income taxes

     1        9  
  

 

 

    

 

 

 

INCOME FROM CONTINUING OPERATIONS

     4        35  
 

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:

       

Net investment (gains) losses

     —          —    

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges(1)

     6        (39

Taxes on adjustments

     (1      8  
  

 

 

    

 

 

 

ADJUSTED OPERATING INCOME

   $ 9      $ 4  
  

 

 

    

 

 

 
           

 

(1)  Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges were adjusted for changes in reserves, attributed fees and benefit payments as reconciled below:

   

Changes in fair value of market risk benefits and associated hedges

   $ 9      $ (28

Adjustment for changes in reserves, attributed fees and benefit payments

     (3      (11
  

 

 

    

 

 

 

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges

   $ 6      $ (39
  

 

 

    

 

 

 

 

27


 

Corporate and Other

  

 

 

 

28


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

Adjusted Operating Loss—Corporate and Other(1)

(amounts in millions)

 

     2023      2022  
     1Q      4Q      3Q      2Q      1Q      Total  

REVENUES:

                   

Premiums

   $ 2      $ 1      $ 2      $ 1      $ 2      $ 6  

Net investment income

     4        4        1        —          3        8  

Net investment gains (losses)

     (10      (21      4        15        (13      (15

Policy fees and other income

     —          —          (1      1        —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

     (4      (16      6        17        (8      (1
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BENEFITS AND EXPENSES:

                   

Benefits and other changes in policy reserves

     (3      —          (4      (4      (3      (11

Acquisition and operating expenses, net of deferrals

     16        11        11        10        9        41  

Interest expense

     16        14        14        13        13        54  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total benefits and expenses

     29        25        21        19        19        84  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (33      (41      (15      (2      (27      (85

Provision (benefit) for income taxes

     (5      (19      2        3        (2      (16
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

LOSS FROM CONTINUING OPERATIONS

     (28      (22      (17      (5      (25      (69
 

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:

                   

Net investment (gains) losses

     10        21        (4      (15      13        15  

(Gains) losses on early extinguishment of debt

     (1      (1      3        1        3        6  

Expenses related to restructuring

     4        1        —          —          —          1  

Taxes on adjustments

     (3      (5      —          3        (3      (5
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED OPERATING LOSS

   $ (18    $ (6    $ (18    $ (16    $ (12    $ (52
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                       

 

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

   

 

 

29


 

Additional Financial Data

 

30


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

Investments Summary

(amounts in millions)

 

     March 31, 2023      December 31, 2022     September 30, 2022     June 30, 2022     March 31, 2022  
     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

   $ 26,894        44    $ 26,047        43   $ 25,550        43   $ 27,342        43   $ 30,897        45

Private fixed maturity securities

     11,182        18        11,126        19       10,997        18       11,727        19       12,873        19  

Residential mortgage-backed securities(1)

     986        2        995        2       1,069        2       1,213        2       1,320        2  

Commercial mortgage-backed securities

     1,814        3        1,900        3       1,980        3       2,126        3       2,349        3  

Other asset-backed securities

     2,113        3        2,117        3       2,139        4       2,009        3       2,016        3  

State and political subdivisions

     2,403        4        2,399        4       2,532        4       2,849        5       3,134        5  

Non-investment grade fixed maturity securities

     1,989        3        1,999        3       1,948        3       2,020        3       2,438        4  

Equity securities:

                            

Common stocks and mutual funds

     306        1        258        1       204        —         172        —         151        —    

Preferred stocks

     58        —          61        —         70        —         71        —         79        —    

Commercial mortgage loans, net

     6,891        11        7,010        11       7,063        11       7,065        12       6,913        10  

Policy loans

     2,133        3        2,139        3       2,153        4       2,178        3       2,028        3  

Limited partnerships

     2,456        4        2,331        4       2,195        4       2,123        3       2,007        3  

Cash, cash equivalents, restricted cash and short-term investments

     1,759        3        1,802        3       1,563        3       1,774        3       1,367        2  

Other invested assets:

   Derivatives:                             
  

Interest rate swaps

     42        —          24        —         25        —         30        —         162        —    
  

Foreign currency swaps

     17        —          20        —         32        —         17        —         5        —    
  

Equity index options

     10        —          6        —         38        —         30        —         30        —    
  

Other

     541        1        513        1       493        1       446        1       398        1  
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total invested assets and cash

   $ 61,594        100    $ 60,747        100   $ 60,051        100   $ 63,192        100   $ 68,167        100
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Public Fixed Maturity Securities—Credit Quality:

                                                                  
    NRSRO(2) Designation                                                                        
   

                           AAA

   $ 6,112        19    $ 6,067        19   $ 6,174        20   $ 6,713        20   $ 7,484        20

                             AA

     2,872        9        2,859        9       2,958        9       3,245        10       3,538        9  

                               A

     8,699        27        8,398        27       8,278        26       8,886        26       9,880        26  

                           BBB

     14,056        43        13,623        43       13,322        43       14,155        42       16,177        42  

                             BB

     786        2        776        2       780        2       846        2       1,079        3  

                               B

     41        —          34        —         33        —         33        —         61        —    

                     CCC and lower

     —          —          —          —         —          —         —          —         —          —    
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total public fixed maturity securities

   $ 32,566        100    $ 31,757        100   $ 31,545        100   $ 33,878        100   $ 38,219        100
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Private Fixed Maturity Securities—Credit Quality:

                                                                  

NRSRO(2) Designation

                          
   

                           AAA

   $ 860        6    $ 825        6   $ 830        6   $ 806        5   $ 775        5

                             AA

     1,422        10        1,421        10       1,407        10       1,421        9       1,554        9  

                               A

     4,217        28        4,170        28       4,059        28       4,308        28       4,773        28  

                           BBB

     7,154        48        7,221        48       7,239        48       7,732        50       8,408        50  

                             BB

     1,012        7        1,076        7       1,028        7       1,015        7       1,159        7  

                               B

     150        1        113        1       107        1       120        1       131        1  

                     CCC and lower

     —          —          —          —         —          —         6        —         8        —    
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total private fixed maturity securities

   $ 14,815        100    $ 14,826        100   $ 14,670        100   $ 15,408        100   $ 16,808        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.

 

31


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

Fixed Maturity Securities Summary

(amounts in millions)

 

     March 31, 2023      December 31, 2022     September 30, 2022     June 30, 2022     March 31, 2022  
     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

   $ 3,441        7    $ 3,341        7   $ 3,307        7   $ 3,627        7   $ 4,097        8

State and political subdivisions

     2,403        5        2,399        5       2,532        6       2,849        6       3,134        6  

Foreign government

     630        1        645        1       622        1       682        1       784        1  

U.S. corporate

     27,872        59        27,119        59       26,562        58       28,243        58       31,823        58  

Foreign corporate

     8,059        17        8,010        17       7,947        17       8,482        17       9,453        17  

Residential mortgage-backed securities

     985        2        995        2       1,069        2       1,213        2       1,320        2  

Commercial mortgage-backed securities

     1,831        4        1,908        4       1,989        4       2,137        5       2,361        4  

Other asset-backed securities

     2,160        5        2,166        5       2,187        5       2,053        4       2,055        4  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total fixed maturity securities

   $ 47,381        100    $ 46,583        100   $ 46,215        100   $ 49,286        100   $ 55,027        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Corporate Bond Holdings—Industry Sector:

                            
   

Investment Grade:

                            

Finance and insurance

   $ 9,149        26    $ 8,986        26   $ 8,858        26   $ 9,313        25   $ 10,235        25

Utilities

     4,788        13        4,591        13       4,476        13       4,857        14       5,450        14  

Energy

     2,882        8        2,813        8       2,790        8       3,043        8       3,372        8  

Consumer - non-cyclical

     4,998        14        4,872        14       4,782        14       5,221        15       5,967        15  

Consumer - cyclical

     1,602        4        1,594        5       1,557        5       1,576        4       1,758        4  

Capital goods

     2,554        7        2,517        7       2,505        7       2,677        7       2,972        7  

Industrial

     1,944        6        1,863        5       1,806        5       1,877        5       2,092        5  

Technology and communications

     3,713        10        3,564        10       3,481        10       3,681        10       4,224        10  

Transportation

     1,459        4        1,439        4       1,385        4       1,465        4       1,642        4  

Other

     1,022        3        1,048        3       1,072        3       1,147        3       1,298        3  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Subtotal

     34,111        95        33,287        95       32,712        95       34,857        95       39,010        95  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Non-Investment Grade:

                            

Finance and insurance

     164        1        153        1       159        1       168        1       185        —    

Utilities

     47        —          47        —         48        —         56        —         62        —    

Energy

     407        1        409        1       399        1       431        1       568        1  

Consumer - non-cyclical

     150        —          151        —         140        —         141        —         192        1  

Consumer - cyclical

     291        1        299        1       302        1       290        1       321        1  

Capital goods

     178        1        167        1       158        1       146        —         159        —    

Industrial

     155        —          152        —         146        —         171        1       209        1  

Technology and communications

     247        1        277        1       266        1       286        1       372        1  

Transportation

     37        —          36        —         35        —         29        —         29        —    

Other

     144        —          151        —         144        —         150        —         169        —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Subtotal

     1,820        5        1,842        5       1,797        5       1,868        5       2,266        5  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 35,931        100    $ 35,129        100   $ 34,509        100   $ 36,725        100   $ 41,276        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Fixed Maturity Securities—Contractual Maturity Dates:

                            
   

Due in one year or less

   $ 1,328        3    $ 1,234        3   $ 1,128        2   $ 1,314        3   $ 1,420        3

Due after one year through five years

     8,245        17        7,931        17       7,856        17       7,958        16       8,501        15  

Due after five years through ten years

     11,746        25        11,915        26       11,751        25       12,765        26       13,943        25  

Due after ten years

     21,086        44        20,434        43       20,235        45       21,846        44       25,427        47  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Subtotal

     42,405        89        41,514        89       40,970        89       43,883        89       49,291        90  

Mortgage and asset-backed securities

     4,976        11        5,069        11       5,245        11       5,403        11       5,736        10  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total fixed maturity securities

   $ 47,381        100    $ 46,583        100   $ 46,215        100   $ 49,286        100   $ 55,027        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
                                      

 

32


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

U.S. GAAP Net Investment Income Yields

(amounts in millions)

 

     2023      2022  
     1Q      4Q     3Q     2Q     1Q     Total  

U.S. GAAP Net Investment Income

               

Fixed maturity securities - taxable

   $ 561      $ 562     $ 576     $ 578     $ 580     $ 2,296  

Fixed maturity securities - non-taxable

     1        1       2       1       1       5  

Equity securities

     2        3       3       2       2       10  

Commercial mortgage loans

     76        81       81       78       81       321  

Policy loans

     55        55       55       51       50       211  

Limited partnerships

     28        22       38       32       7       99  

Other invested assets

     68        71       67       66       63       267  

Cash, cash equivalents, restricted cash and short-term investments

     18        12       7       1       —         20  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment income before expenses and fees

     809        807       829       809       784       3,229  

Expenses and fees

     (22      (20     (21     (22     (20     (83
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

   $ 787      $ 787     $ 808     $ 787     $ 764     $ 3,146  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Annualized Yields

               

Fixed maturity securities - taxable

     4.4      4.4     4.5     4.5     4.4     4.5

Fixed maturity securities - non-taxable

     4.6      4.0     7.1     3.6     3.6     4.7

Equity securities

     2.3      4.0     4.6     3.4     3.7     4.0

Commercial mortgage loans

     4.4      4.6     4.6     4.5     4.7     4.6

Policy loans

     10.3      10.3     10.2     9.7     9.8     10.0

Limited partnerships(1)

     4.7      3.9     7.0     6.2     1.4     4.7

Other invested assets(2)

     51.6      56.6     57.0     62.6     64.8     59.9

Cash, cash equivalents, restricted cash and short-term investments

     4.0      2.9     1.7     0.3     —       1.2
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment income before expenses and fees

     5.0      5.0     5.1     4.9     4.8     5.0

Expenses and fees

     (0.1 )%       (0.2 )%      (0.1 )%      (0.1 )%      (0.1 )%      (0.2 )% 
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     4.9      4.8     5.0     4.8     4.7     4.8
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   

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. See page 38 herein for average invested assets and cash used in the yield calculation.

 

(1) 

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

(2) 

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

 

33


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

Net Investment Gains (Losses)—Detail

(amounts in millions)

 

     2023      2022  
     1Q      4Q     3Q     2Q     1Q     Total  

Realized investment gains (losses):

               

Net realized gains (losses) on available-for-sale securities:

               

Fixed maturity securities:

               

U.S. corporate

   $ (8    $ (25   $ (23   $ (2   $ (12   $ (62

U.S. government, agencies and government-sponsored enterprises

     1        —         9       —         6       15  

Foreign corporate

     (3      (6     (7     (1     (2     (16

Foreign government

     (1      —         —         —         —         —    

Mortgage-backed securities

     (5      (4     (5     (1     —         (10

Asset-backed securities

     —          —         (1     —         —         (1
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized gains (losses) on available-for-sale securities

     (16      (35     (27     (4     (8     (74

Net realized gains (losses) on equity securities sold