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Exhibit 99.2

 


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i


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

Cautionary Note Regarding Forward-Looking Statements

This financial supplement contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning and include, but are not limited to, statements regarding the outlook for future business and financial performance of Genworth Financial, Inc. and its consolidated subsidiaries. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks, as well as risks discussed in the risk factor section of the company’s Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission on February 28, 2023. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

 

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GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD 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 Quarter

     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) and Statutory Impact of In-Force Rate Actions—Long-Term Care Insurance Segment

     22-23  

Adjusted Operating Income (Loss)—Life and Annuities Segment

     25-28  

Adjusted Operating Loss—Corporate and Other

     30  

Additional Financial Data

  

Investments Summary

     32  

Fixed Maturity Securities Summary

     33  

U.S. GAAP Net Investment Income Yields

     34  

Net Investment Gains (Losses)—Detail

     35  

Reconciliations of Non-GAAP Measures

  

Reconciliation of Operating Return On Equity (ROE)

     37  

Reconciliation of Consolidated Expense Ratio

     38  

Reconciliation of Reported Yield to Core Yield

     39  

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

THIRD QUARTER 2023

 

Dear Investor,

On January 1, 2023, the company 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 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 is currently unaudited. It is possible that the final audited financial results may differ, perhaps materially, from the information included in this financial supplement. In addition, the unaudited financial results reported in this financial supplement are not indicative of future financial results, although as the company has indicated, it does expect the quarterly volatility of results, particularly in its Long-Term Care Insurance and Life and Annuities segments, to extend to future periods with the adoption of LDTI.

There are some changes related to the implementation of LDTI to highlight for the company’s Long-Term Care Insurance and Life and Annuities segments:

 

   

Assumptions are best estimate and updated annually in the fourth quarter. Changes in assumptions now flow through the liability remeasurement (gains) losses financial statement line item in the income statement, which contributes significantly to annual income volatility. However, the company will update cash flow assumptions related to the timing and approval amounts of in-force rate actions on a quarterly basis, which could contribute to quarterly income volatility for its Long-Term Care Insurance segment.

 

   

Assumptions are recorded at a more granular cohort level. Impacts from older less profitable capped cohorts that do not have margin will more heavily influence income statement results than impacts from newer uncapped profitable cohorts that have positive margin.

 

   

The liability remeasurement (gains) losses financial statement line item in the income statement includes the differences between actual experience and best estimate assumptions on a quarterly basis and can be favorable or unfavorable.

 

   

Best estimate assumptions for long-term care insurance products now include an estimate for benefit reductions from both in-force rate actions and legal settlements. Similarly, cash payments made to policyholders who elect certain reduced benefit options in connection with long-term care insurance legal settlements, referred to as “settlement payments,” are also included in the liability for future policyholder benefits. Therefore, the impacts from benefit reductions and settlement payments will only impact the income statement on a quarterly basis to the extent that actual experience differs from expectations as mentioned above. There was no change to how the company accounts for premiums related to in-force rate actions, which are recorded to the income statement when they occur.

 

   

Market risk benefits (primarily variable annuities) are recorded at fair value. The company excludes changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges from adjusted operating income (loss). See page 25 for additional details.

Additional information concerning the company’s long-term care insurance business is included on page 22 of this financial supplement. As disclosed on page 22, in the fourth quarter of 2022, the liability remeasurement gain of $255 million in the company’s long-term care insurance business reflected favorable assumption updates of $303 million, largely from an update to legal settlement elections attributable to the inclusion of a second legal settlement and the resulting expected reserve reduction, net of settlement payments to policyholders. This settlement, comprised of PCS I and PSC II policies, represents approximately 15% of the overall block and impacts older unprofitable capped cohorts. When the company updates its assumptions for its third long-term care insurance legal settlement in the fourth quarter of 2023 for its Choice II policies, which represents approximately 35% of the overall block, any changes would have a muted income statement impact because this settlement impacts profitable uncapped cohorts. As previously disclosed, the company’s blocks with profits or margin have a net premium ratio below 100% and therefore have less impact on liability remeasurement (gains) losses in the income statement.

Page 23 provides further information for investors on the company’s long-term care insurance business and the impact of in-force rate actions, including the legal settlements, on pre-tax statutory earnings.

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

Regards,

Brian Johnson, Investor Relations

InvestorInfo@genworth.com

 

3


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD 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 company’s President and Chief Executive Officer (Principal Executive Officer), who serves as 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 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 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 and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments.

In the third and fourth quarters of 2022, the company incurred $6 million and $2 million, respectively, of pre-tax pension plan termination costs related to one of its defined benefit pension plans. There were no other 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 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 37 to 39 of this financial supplement.

Statutory Accounting Data

The company presents certain supplemental statutory data for Genworth Life Insurance Company (GLIC) and its consolidating life insurance subsidiaries that has been prepared on the basis of statutory accounting principles (SAP). GLIC and its consolidating life insurance subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners that are prepared using SAP, an accounting basis either prescribed or permitted by such authorities. Due to differences in methodology between SAP and U.S. GAAP, the values for assets, liabilities and equity, and the recognition of income and expenses, reflected in financial statements prepared in accordance with U.S. GAAP are materially different from those reflected in financial statements prepared under SAP. This supplemental statutory data should not be viewed as an alternative to, or used in lieu of, U.S. GAAP.

This supplemental statutory data includes the impact from in-force rate actions on pre-tax long-term care insurance statutory earnings. Statutory pre-tax earnings represent the net gain from operations, including the impact from in-force rate actions, before dividends to policyholders, refunds to members and federal income taxes and before realized capital gains or (losses). Management uses and provides this supplemental statutory data because it believes it provides a useful measure of, among other things, statutory pre-tax earnings and the adequacy of capital. Management uses this data to measure against its policy to manage the U.S. life insurance companies with internally generated capital.

 

4


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

 

Results of Operations and Selected Operating Performance Measures

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, June 30, 2023 and September 30, 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 quarters in 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

THIRD QUARTER 2023

 

Financial Highlights

(amounts in millions, except per share data)

 

Balance Sheet Data

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

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

   $ 10,276     $ 10,321     $ 10,292     $ 10,245     $ 9,892  

Total accumulated other comprehensive income (loss)(1)

     (2,220     (2,861     (2,853     (2,614     (2,632
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

   $ 8,056     $ 7,460     $ 7,439     $ 7,631     $ 7,260  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Book value per share

   $ 17.80     $ 15.98     $ 15.28     $ 15.40     $ 14.44  

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

   $ 22.70     $ 22.11     $ 21.14     $ 20.68     $ 19.68  

Common shares outstanding as of the balance sheet date

     452.7       466.8       486.9       495.4       502.6  
     Three months ended  

Quarterly Average ROE

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

U.S. GAAP Basis ROE

     1.1     5.3     4.8     15.1     5.5

Operating ROE(2)

     1.6     3.3     5.6     13.4     6.4

Basic and Diluted Shares

   Three months ended
September 30, 2023
    Nine months ended
September 30, 2023
                   

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

     460.5       475.3        

Potentially dilutive securities:

          

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

     5.5       6.1        
  

 

 

   

 

 

       

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

     466.0       481.4        
  

 

 

   

 

 

       

 

(1) 

As of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, total accumulated other comprehensive income (loss) includes $1,826 million, $(964) million, $(1,628) million, $(403) million and $115 million, net of taxes, respectively, related to changes in the discount rate used to remeasure the liability for future policy benefits and related reinsurance recoverables.

(2) 

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

 

6


 

 Consolidated Quarterly Results

  

 

 

7


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

Consolidated Net Income by Quarter

(amounts in millions, except per share amounts)

 

    

2023

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

REVENUES:

                     

Premiums

   $ 915      $ 902     $ 915     $ 2,732     $ 918     $ 929     $ 916     $ 917     $ 3,680  

Net investment income

     801        785       787       2,373       787       808       787       764       3,146  

Net investment gains (losses)

     (43      39       (11     (15     (5     (58     19       42       (2

Policy fees and other income

     158        166       163       487       167       169       165       170       671  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     1,831        1,892       1,854       5,577       1,867       1,848       1,887       1,893       7,495  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                     

Benefits and other changes in policy reserves

     1,199        1,175       1,176       3,550       1,209       1,159       768       1,167       4,303  

Liability remeasurement (gains) losses

     116        70       (15     171       (267     17       24       (64     (290

Changes in fair value of market risk benefits and associated hedges

     (24      (19     17       (26     (56     (27     20       (41     (104

Interest credited

     127        126       126       379       125       128       126       125       504  

Acquisition and operating expenses, net of deferrals

     228        226       240       694       225       245       579       236       1,285  

Amortization of deferred acquisition costs and intangibles

     65        64       72       201       74       80       84       88       326  

Interest expense

     30        29       29       88       28       26       26       26       106  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     1,741        1,671       1,645       5,057       1,338       1,628       1,627       1,537       6,130  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     90        221       209       520       529       220       260       356       1,365  

Provision for income taxes

     30        55       55       140       119       54       62       84       319  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS

     60        166       154       380       410       166       198       272       1,046  

Net income (loss) from discontinued operations, net of taxes(1)

     —         2       —        2       (2     5       (1     (2     —   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

     60        168       154       382       408       171       197       270       1,046  

Less: net income from continuing operations attributable to noncontrolling interests

     31        31       32       94       27       35       38       30       130  

Less: net income from discontinued operations attributable to noncontrolling interests

     —         —        —        —        —        —        —        —        —   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 29      $ 137     $ 122     $ 288     $ 381     $ 136     $ 159     $ 240     $ 916  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

                     

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

   $ 29      $ 135     $ 122     $ 286     $ 383     $ 131     $ 160     $ 242     $ 916  

Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders

     —         2       —        2       (2     5       (1     (2     —   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 29      $ 137     $ 122     $ 288     $ 381     $ 136     $ 159     $ 240     $ 916  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                         

Earnings Per Share Data:

                   

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

                   

Basic

   $ 0.06      $ 0.28     $ 0.25     $ 0.60     $ 0.77     $ 0.26     $ 0.32     $ 0.48     $ 1.82  

Diluted

   $ 0.06      $ 0.28     $ 0.24     $ 0.59     $ 0.76     $ 0.26     $ 0.31     $ 0.47     $ 1.79  

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

                   

Basic

   $ 0.06      $ 0.29     $ 0.25     $ 0.61     $ 0.77     $ 0.27     $ 0.31     $ 0.47     $ 1.82  

Diluted

   $ 0.06      $ 0.29     $ 0.24     $ 0.60     $ 0.76     $ 0.27     $ 0.31     $ 0.46     $ 1.79  

Weighted-average common shares outstanding

                   

Basic

     460.5        473.2       492.3       475.3       496.5       503.8       508.9       508.3       504.4  

Diluted

     466.0        478.1       500.1       481.4       502.9       509.3       514.1       517.4       510.9  

 

(1) 

Income (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

THIRD QUARTER 2023

 

Reconciliation of Net Income to Adjusted Operating Income

(amounts in millions, except per share amounts)

 

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

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

   $ 29      $ 137     $ 122     $ 288     $ 381     $ 136     $ 159     $ 240     $ 916  

Add: net income from continuing operations attributable to noncontrolling interests

     31        31       32       94       27       35       38       30       130  

Add: net income from discontinued operations attributable to noncontrolling interests

     —         —        —        —        —        —        —        —        —   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

     60        168       154       382       408       171       197       270       1,046  

Less: income (loss) from discontinued operations, net of taxes

     —         2       —        2       (2     5       (1     (2     —   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS

     60        166       154       380       410       166       198       272       1,046  

Less: net income from continuing operations attributable to noncontrolling interests

     31        31       32       94       27       35       38       30       130  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     29        135       122       286       383       131       160       242       916  
 

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

                     

Net investment (gains) losses, net(1)

     43        (41     11       13       5       58       (19     (42     2  

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges(2)

     (26      (23     14       (35     (64     (32     8       (54     (142

(Gains) losses on early extinguishment of debt

     —         —        (1     (1     (1     3       1       3       6  

Expenses related to restructuring

     —         1       3       4       1       —        1       —        2  

Pension plan termination costs

     —         —        —        —        2       6       —        —        8  

Taxes on adjustments

     (4      13       (5     4       12       (8     2       20       26  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 42      $ 85     $ 144     $ 271     $ 338     $ 158     $ 153     $ 169     $ 818  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS):

                     

Enact segment

   $ 134      $ 146     $ 143     $ 423     $ 120     $ 156     $ 167     $ 135     $ 578  

Long-Term Care Insurance segment

     (71      (43     23       (91     204       26       17       73       320  

Life and Annuities segment:

                     

Life Insurance

     (25      (17     (27     (69     1       (28     (37     (47     (111

Fixed Annuities

     17        10       14       41       14       15       20       13       62  

Variable Annuities

     5        9       9       23       8       7       2       4       21  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Life and Annuities segment

     (3      2       (4     (5     23       (6     (15     (30     (28
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate and Other

     (18      (20     (18     (56     (9     (18     (16     (9     (52
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 42      $ 85     $ 144     $ 271     $ 338     $ 158     $ 153     $ 169     $ 818  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                         

Earnings Per Share Data:

                   

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

                   

Basic

   $ 0.06      $ 0.29     $ 0.25     $ 0.61     $ 0.77     $ 0.27     $ 0.31     $ 0.47     $ 1.82  

Diluted

   $ 0.06      $ 0.29     $ 0.24     $ 0.60     $ 0.76     $ 0.27     $ 0.31     $ 0.46     $ 1.79  

Adjusted operating income per share

                   

Basic

   $ 0.09      $ 0.18     $ 0.29     $ 0.57     $ 0.68     $ 0.31     $ 0.30     $ 0.33     $ 1.62  

Diluted

   $ 0.09      $ 0.18     $ 0.29     $ 0.56     $ 0.67     $ 0.31     $ 0.30     $ 0.33     $ 1.60  

Weighted-average common shares outstanding

                   

Basic

     460.5        473.2       492.3       475.3       496.5       503.8       508.9       508.3       504.4  

Diluted

     466.0        478.1       500.1       481.4       502.9       509.3       514.1       517.4       510.9  

 

(1) 

Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests (see page 35 for reconciliation).

(2) 

Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments (see page 25 for reconciliation).

 

9


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

Consolidated Balance Sheets

(amounts in millions)

 

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

ASSETS

             

Investments:

             

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

   $ 43,968      $ 46,070     $ 47,381     $ 46,583     $ 46,215  

Equity securities, at fair value

     363        378       364       319       274  

Commercial mortgage loans(2)

     6,818        6,876       6,915       7,032       7,086  

Less: Allowance for credit losses

     (25      (24     (24     (22     (23
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Commercial mortgage loans, net

     6,793        6,852       6,891       7,010       7,063  

Policy loans

     2,233        2,270       2,133       2,139       2,153  

Limited partnerships

     2,699        2,585       2,456       2,331       2,195  

Other invested assets

     645        648       617       566       590  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total investments

     56,701        58,803       59,842       58,948       58,490  

Cash, cash equivalents and restricted cash

     1,993        2,173       1,752       1,799       1,561  

Accrued investment income

     620        553       700       643       616  

Deferred acquisition costs

     2,042        2,096       2,150       2,211       2,276  

Intangible assets

     199        201       203       203       209  

Reinsurance recoverable

     17,623        19,113       19,606       19,059       18,906  

Less: Allowance for credit losses

     (28      (64     (64     (63     (64
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Reinsurance recoverable, net

     17,595        19,049       19,542       18,996       18,842  

Other assets

     453        445       478       488       493  

Deferred tax asset

     1,580        1,954       2,002       1,983       2,092  

Market risk benefit assets

     39        37       28       26       20  

Separate account assets

     4,244        4,533       4,479       4,417       4,298  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 85,466      $ 89,844     $ 91,176     $ 89,714     $ 88,897  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
                 

 

(1) 

Amortized cost of $49,855 million, $49,864 million, $50,461 million, $50,834 million and $51,248 million as of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively, and allowance for credit losses of $6 million, $4 million and $15 million as of September 30, 2023, June 30, 2023 and March 31, 2023 and $— as of December 31, 2022 and September 30, 2022.

(2) 

Net of unamortized balance of loan origination fees and costs of $4 million as of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022.

 

10


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

 

Consolidated Balance Sheets

(amounts in millions)

 

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

LIABILITIES AND EQUITY

            

Liabilities:

            

Future policy benefits

  $ 51,740      $ 56,443     $ 57,531     $ 55,407     $ 54,553  

Policyholder account balances

    15,590        15,922       16,202       16,564       16,985  

Market risk benefit liabilities

    579        666       761       748       832  

Liability for policy and contract claims

    631        628       665       683       669  

Unearned premiums

    162        175       189       203       213  

Other liabilities

    2,038        1,607       1,510       1,687       1,701  

Long-term borrowings

    1,602        1,601       1,600       1,611       1,622  

Separate account liabilities

    4,244        4,533       4,479       4,417       4,298  

Liabilities related to discontinued operations(1)

    2        2       7       8       6  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    76,588        81,577       82,944       81,328       80,879  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

            

Common stock

    1        1       1       1       1  

Additional paid-in capital

    11,877        11,869       11,863       11,869       11,865  

Accumulated other comprehensive income (loss):

            

Change in the discount rate used to measure future policy benefits

    1,826        (964     (1,628     (403     115  

All other

    (4,046      (1,897     (1,225     (2,211     (2,747
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total accumulated other comprehensive income (loss)

    (2,220      (2,861     (2,853     (2,614     (2,632

Retained earnings

    1,426        1,398       1,261       1,139       760  

Treasury stock, at cost

    (3,028      (2,947     (2,833     (2,764     (2,734
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

    8,056        7,460       7,439       7,631       7,260  

Noncontrolling interests

    822        807       793       755       758  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    8,878        8,267       8,232       8,386       8,018  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

  $ 85,466      $ 89,844     $ 91,176     $ 89,714     $ 88,897  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
                

 

(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.

 

11


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

 

Consolidated Balance Sheet by Segment

(amounts in millions)

 

     September 30, 2023  
     Enact     Long-Term
Care Insurance
     Life and
Annuities
    Corporate
and
Other
(1)
    Total  

ASSETS

           

Cash and investments

   $ 5,750     $ 33,890      $ 18,457     $ 1,217     $ 59,314  

Deferred acquisition costs and intangible assets

     41       917        1,273       10       2,241  

Reinsurance recoverable, net

     —        6,814        10,781       —        17,595  

Deferred tax and other assets

     209       1,306        317       201       2,033  

Market risk benefit assets

     —        —         39       —        39  

Separate account assets

     —        —         4,244       —        4,244  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 6,000     $ 42,927      $ 35,111     $ 1,428     $ 85,466  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

           

Liabilities:

           

Future policy benefits

   $ —      $ 38,928      $ 12,812     $ —      $ 51,740  

Policyholder account balances

     —        —         15,590       —        15,590  

Market risk benefit liabilities

     —        —         579       —        579  

Liability for policy and contract claims

     501       —         123       7       631  

Unearned premiums

     162       —         —        —        162  

Other liabilities

     124       1,175        250       489       2,038  

Borrowings

     745       —         —        857       1,602  

Separate account liabilities

     —        —         4,244       —        4,244  

Liabilities related to discontinued operations

     —        —         —        2       2  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

     1,532       40,103        33,598       1,355       76,588  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Equity:

           

Allocated equity, excluding accumulated other comprehensive income (loss)

     3,974       2,690        2,940       672       10,276  

Allocated accumulated other comprehensive income (loss)

     (328     134        (1,427     (599     (2,220
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

     3,646       2,824        1,513       73       8,056  

Noncontrolling interests

     822       —         —        —        822  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total equity

     4,468       2,824        1,513       73       8,878  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 6,000     $ 42,927      $ 35,111     $ 1,428     $ 85,466  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(1) 

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

 

12


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

 

Consolidated Balance Sheet by Segment

(amounts in millions)

 

     June 30, 2023  
     Enact     Long-Term
Care Insurance
    Life and
Annuities
    Corporate
and
Other
(1)
    Total  

ASSETS

          

Cash and investments

   $ 5,675     $ 35,113     $ 19,449     $ 1,292     $ 61,529  

Deferred acquisition costs and intangible assets

     39       932       1,317       9       2,297  

Reinsurance recoverable, net

     —        7,454       11,595       —        19,049  

Deferred tax and other assets

     208       1,695       237       259       2,399  

Market risk benefit assets

     —        —        37       —        37  

Separate account assets

     —        —        4,533       —        4,533  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 5,922     $ 45,194     $ 37,168     $ 1,560     $ 89,844  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

          

Liabilities:

          

Future policy benefits

   $ —      $ 42,661     $ 13,782     $ —      $ 56,443  

Policyholder account balances

     —        —        15,922       —        15,922  

Market risk benefit liabilities

     —        —        666       —        666  

Liability for policy and contract claims

     490       —        131       7       628  

Unearned premiums

     175       —        —        —        175  

Other liabilities

     125       751       284       447       1,607  

Borrowings

     744       —        —        857       1,601  

Separate account liabilities

     —        —        4,533       —        4,533  

Liabilities related to discontinued operations

     —        —        —        2       2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     1,534       43,412       35,318       1,313       81,577  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

          

Allocated equity, excluding accumulated other comprehensive income (loss)

     3,864       2,784       2,930       743       10,321  

Allocated accumulated other comprehensive income (loss)

     (283     (1,002     (1,080     (496     (2,861
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

     3,581       1,782       1,850       247       7,460  

Noncontrolling interests

     807       —        —        —        807  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     4,388       1,782       1,850       247       8,267  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 5,922     $ 45,194     $ 37,168     $ 1,560     $ 89,844  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

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

 

13


 

Enact Segment

                      

 

 

 

14


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

Adjusted Operating Income and Sales—Enact Segment

(amounts in millions)

 

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

REVENUES:

                     

Premiums

   $ 243      $ 239     $ 235     $ 717     $ 233     $ 235     $ 238     $ 234     $ 940  

Net investment income

     55        50       46       151       45       39       36       35       155  

Net investment gains (losses)

     —         (13     —        (13     (1     —        (1     —        (2

Policy fees and other income

     1        1       —        2       —        1       —        1       2  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     299        277       281       857       277       275       273       270       1,095  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                     

Benefits and other changes in policy reserves

     18        (4     (11     3       18       (40     (62     (10     (94

Acquisition and operating expenses, net of deferrals

     52        52       52       156       60       55       58       54       227  

Amortization of deferred acquisition costs and intangibles

     3        2       3       8       2       4       3       3       12  

Interest expense

     13        13       13       39       14       12       13       13       52  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     86        63       57       206       94       31       12       60       197  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     213        214       224       651       183       244       261       210       898  

Provision for income taxes

     48        46       49       143       39       53       57       45       194  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS

     165        168       175       508       144       191       204       165       704  

Less: net income from continuing operations attributable to noncontrolling interests

     31        31       32       94       27       35       38       30       130  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     134        137       143       414       117       156       166       135       574  
 

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

                     

Net investment (gains) losses, net(1)

     —         11       —        11       1       —        1       —        2  

Expenses related to restructuring

     —         —        —        —        3       —        —        —        3  

Taxes on adjustments

     —         (2     —        (2     (1     —        —        —        (1
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 134      $ 146     $ 143     $ 423     $ 120     $ 156     $ 167     $ 135     $ 578  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                         

SALES:

                   

Primary New Insurance Written (NIW)

   $ 14,391      $ 15,083     $ 13,154     $ 42,628     $ 15,145     $ 15,069     $ 17,448     $ 18,823     $ 66,485  
                         

 

(1) 

Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $2 million in the second quarter of 2023.

 

15


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

 

Primary New Insurance Written Metrics—Enact Segment

(amounts in millions)

 

     2023     2022  
     3Q      2Q     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
    Primary
NIW
     % of
Primary
NIW
    Primary
NIW
     % of
Primary
NIW
 

Payment Type

                                      

Monthly

   $ 14,099        98    $ 14,774        98   $ 12,809        97   $ 13,745        91   $ 14,138        94   $ 16,169        93   $ 17,071        91

Single

     269        2        281        2       318        3       1,368        9       890        6       1,218        7       1,690        9  

Other(1)

     23        —         28        —        27        —        32        —        41        —        61        —        62        —   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 14,391        100    $ 15,083        100   $ 13,154        100   $ 15,145        100   $ 15,069        100   $ 17,448        100   $ 18,823        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Origination

                                      

Purchase

   $ 14,073        98    $ 14,720        98   $ 12,761        97   $ 14,744        97   $ 14,634        97   $ 16,802        96   $ 17,326        92

Refinance

     318        2        363        2       393        3       401        3       435        3       646        4       1,497        8  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 14,391        100    $ 15,083        100   $ 13,154        100   $ 15,145        100   $ 15,069        100   $ 17,448        100   $ 18,823        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

FICO Scores

                                      

Over 760

   $ 6,679        46    $ 6,911        46   $ 6,004        46   $ 6,951        46   $ 6,948        46   $ 7,981        45   $ 8,359        45

740 - 759

     2,438        17        2,608        17       2,268        17       2,709        18       2,554        17       2,916        17       3,085        16  

720 - 739

     1,928        13        2,097        14       1,817        14       2,226        15       2,106        14       2,530        15       2,515        13  

700 - 719

     1,422        10        1,499        10       1,296        10       1,489        10       1,531        10       1,917        11       1,952        10  

680 - 699

     974        7        1,060        7       954        7       1,035        7       1,085        7       1,099        6       1,316        7  

660 - 679(2)

     592        4        568        4       517        4       478        3       527        3       598        3       931        5  

640 - 659

     282        2        260        2       229        2       189        1       234        2       297        2       486        3  

620 - 639

     74        1        76        —        65        —        66        —        79        1       106        1       173        1  

<620

     2        —         4        —        4        —        2        —        5        —        4        —        6        —   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 14,391        100    $ 15,083        100   $ 13,154        100   $ 15,145        100   $ 15,069        100   $ 17,448        100   $ 18,823        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Loan-To-Value Ratio

                                      

95.01% and above

   $ 2,677        18    $ 2,692        18   $ 2,106        16   $ 2,423        16   $ 1,741        11   $ 2,177        12   $ 3,146        17

90.01% to 95.00%

     5,431        38        5,743        38       4,928        38       5,684        37       6,184        41       7,458        43       6,682        35  

85.01% to 90.00%

     4,568        32        4,753        31       4,390        33       4,971        33       5,094        34       5,207        30       5,620        30  

85.00% and below

     1,715        12        1,895        13       1,730        13       2,067        14       2,050        14       2,606        15       3,375        18  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 14,391        100    $ 15,083        100   $ 13,154        100   $ 15,145        100   $ 15,069        100   $ 17,448        100   $ 18,823        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Debt-To-Income Ratio

                                      

45.01% and above

   $ 4,437        31    $ 4,467        30   $ 3,538        27   $ 4,294        28   $ 3,728        25   $ 4,067        23   $ 4,452        24

38.01% to 45.00%

     4,936        34        5,214        34       4,940        38       5,518        37       5,681        38       6,436        37       6,361        34  

38.00% and below

     5,018        35        5,402        36       4,676        35       5,333        35       5,660        37       6,945        40       8,010        42  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Primary

   $ 14,391        100    $ 15,083        100   $ 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

THIRD QUARTER 2023

 

Other Metrics—Enact Segment

(dollar amounts in millions)

 

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

Primary Insurance In-Force(1)

  $ 262,014     $ 257,816     $ 252,516       $ 248,262     $ 241,813     $ 237,563     $ 231,853    
   

Risk In-Force

                   

Primary(2)

  $ 67,056     $ 65,714     $ 64,106       $ 62,791     $ 61,124     $ 59,911     $ 58,295    

Pool

    70       73       76         79       84       89       97    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Total Risk In-Force

  $ 67,126     $ 65,787     $ 64,182       $ 62,870     $ 61,208     $ 60,000     $ 58,392    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   
   

Expense Ratio(3)

    23     23     23     23     27     25     26     24     23
   

Primary Persistency Rate

    84     84     85     84     86     82     80     76     85
   

Combined Risk To Capital Ratio(4)

    11.6:1       11.8:1       12.6:1         12.8:1       12.3:1       12.6:1       12.0:1    
   

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

    11.6:1       11.9:1       12.7:1         12.9:1       12.3:1       12.6:1       12.1:1    
   

PMIERs Available Assets(6)

  $ 5,268     $ 5,093     $ 5,357       $ 5,206     $ 5,292     $ 5,147     $ 5,222    
   

PMIERs Required Assets(6)

  $ 3,251     $ 3,135     $ 3,259       $ 3,156     $ 3,043     $ 3,100     $ 2,961    
   

Available Assets Above PMIERs Requirements(6)

  $ 2,017     $ 1,958     $ 2,098       $ 2,050     $ 2,249     $ 2,047     $ 2,261    
   

PMIERs Sufficiency Ratio(6)

    162     162     164       165     174     166     176  
   

Average Primary Loan Size (in thousands)

  $ 268     $ 265     $ 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

THIRD QUARTER 2023

 

Loss Metrics—Enact Segment

(amounts in millions)

 

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

Average Paid Claim (in thousands)(1)

   $ 46.8      $ 46.6     $ 46.9       $ 48.7     $ 42.2     $ 50.1     $ 51.6    

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

   $ 23.9      $ 25.0     $ 24.8       $ 24.0     $ 25.2     $ 27.0     $ 26.2    
 

Reserves:

                     

Direct primary case

   $ 460      $ 452     $ 462       $ 479     $ 476     $ 526     $ 591    

All other(3)

     41        38       40         40       34       33       34    
  

 

 

    

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Total Reserves

   $ 501      $ 490     $ 502       $ 519     $ 510     $ 559     $ 625    
  

 

 

    

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   
 

Beginning Reserves

   $ 490      $ 502     $ 519     $ 519     $ 510     $ 559     $ 625     $ 641     $ 641  

Paid claims

     (7      (8     (6     (21     (9     (9     (4     (6     (28

Increase (decrease) in reserves

     18        (4     (11     3       18       (40     (62     (10     (94
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending Reserves

   $ 501      $ 490     $ 502     $ 501     $ 519     $ 510     $ 559     $ 625     $ 519  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss Ratio(4)

     7      (2 )%      (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 third and fourth 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

THIRD QUARTER 2023

 

Delinquency Metrics—Enact Segment

(dollar amounts in millions)

 

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

Primary Loans

                   

Primary loans in-force

    977,832       973,280       965,544         960,306       949,052       946,891       941,689    

Primary delinquent loans

    19,241       18,065       18,633         19,943       18,856       19,513       22,571    

Primary delinquency rate

    1.97     1.86     1.93       2.08     1.99     2.06     2.40  
 

Beginning Number of Primary Delinquencies

    18,065       18,633       19,943       19,943       18,856       19,513       22,571       24,820       24,820  

New delinquencies

    11,107       9,205       9,599       29,911       10,304       9,121       7,847       8,724       35,996  

Delinquency cures

    (9,778     (9,609     (10,771     (30,158     (9,024     (9,588     (10,806     (10,860     (40,278

Paid claims

    (147     (156     (126     (429     (190     (187     (90     (107     (574

Rescissions and claim denials

    (6     (8     (12     (26     (3     (3     (9     (6     (21
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending Number of Primary Delinquencies

    19,241       18,065       18,633       19,241       19,943       18,856       19,513       22,571       19,943  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Composition of Cures

                   

Reported delinquent and cured-intraquarter

    1,877       1,661       2,016         1,489       1,598       1,306       1,581    

Number of missed payments delinquent prior to cure:

                   

3 payments or less

    4,792       4,516       5,238         4,179       3,719       4,037       3,902    

4 - 11 payments

    2,265       2,448       2,431         2,001       2,279       2,484       2,315    

12 payments or more

    844       984       1,086         1,355       1,992       2,979       3,062    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Total

    9,778       9,609       10,771         9,024       9,588       10,806       10,860    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Primary Delinquencies by Missed Payment Status

                   

3 payments or less

    9,398       8,162       7,876         8,920       7,446       6,442       6,837    

4 - 11 payments

    6,381       6,229       6,714         6,466       6,119       6,372       6,875    

12 payments or more

    3,462       3,674       4,043         4,557       5,291       6,699       8,859    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Primary Delinquencies

    19,241       18,065       18,633         19,943       18,856       19,513       22,571    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   
                       
    September 30, 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

  $ 80     $ 568       14            

4 - 11 payments in default

    192       426       45            

12 payments or more in default

    188       201       94            
 

 

 

   

 

 

               

Total

  $ 460     $ 1,195       38            
 

 

 

   

 

 

               
    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

THIRD QUARTER 2023

 

Portfolio Quality Metrics—Enact Segment

(amounts in millions)

 

     September 30, 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

     20   $ 5,859       2   $ 1,510       2     8.67

2009-2015

     5       3,819       1       1,004       2       4.20

2016

     4       4,948       2       1,327       2       3.07

2017

     6       5,582       2       1,471       2       3.62

2018

     6       5,993       2       1,535       2       4.18

2019

     9       14,372       6       3,676       5       2.58

2020

     15       46,881       18       12,228       18       1.53

2021

     21       73,141       28       18,524       28       1.48

2022

     13       60,258       23       15,129       23       1.28

2023

     1       41,161       16       10,652       16       0.25
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total

     100   $ 262,014       100   $ 67,056       100     1.97
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
     September 30, 2023     December 31, 2022     September 30, 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

   $ 12,595       19   $ 11,136       18   $ 10,809       18

90.01% to 95.00%

     31,696       47       30,079       48       29,379       48  

85.01% to 90.00%

     18,945       28       17,621       28       17,019       28  

85.00% and below

     3,820       6       3,955       6       3,917       6  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 67,056       100   $ 62,791       100   $ 61,124       100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     September 30, 2023     December 31, 2022     September 30, 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

   $ 28,014       42   $ 25,807       41   $ 24,965       41

740 - 759

     11,009       17       10,154       16       9,808       16  

720 - 739

     9,553       14       8,931       14       8,656       14  

700 - 719

     7,615       12       7,317       12       7,200       12  

680 - 699

     5,582       8       5,428       9       5,356       9  

660 - 679(2)

     2,901       4       2,767       5       2,739       4  

640 - 659

     1,569       2       1,540       2       1,541       3  

620 - 639

     647       1       665       1       672       1  

<620

     166       —        182       —        187       —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 67,056       100   $ 62,791       100   $ 61,124       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

THIRD QUARTER 2023

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

(amounts in millions)

 

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

REVENUES:

                     

Premiums

   $ 621      $ 611     $ 616     $ 1,848     $ 639     $ 637     $ 617     $ 607     $ 2,500  

Net investment income

     482        470       473       1,425       470       497       486       447       1,900  

Net investment gains (losses)

     (21      62       9       50       20       (47     5       41       19  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     1,082        1,143       1,098       3,323       1,129       1,087       1,108       1,095       4,419  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                     

Benefits and other changes in policy reserves

     953        941       944       2,838       965       956       942       925       3,788  

Liability remeasurement (gains) losses

     104        61       (32     133       (255     3       23       (88     (317

Acquisition and operating expenses, net of deferrals

     109        108       119       336       100       122       95       96       413  

Amortization of deferred acquisition costs and intangibles

     17        18       18       53       18       19       18       19       74  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     1,183        1,128       1,049       3,360       828       1,100       1,078       952       3,958  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (101      15       49       (37     301       (13     30       143       461  

Provision (benefit) for income taxes

     (13      10       18       15       79       (1     9       38       125  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     (88      5       31       (52     222       (12     21       105       336  

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

                     

Net investment (gains) losses

     21        (62     (9     (50     (20     47       (5     (41     (19

Expenses related to restructuring

     —         1       (1     —        (2     —        1       —        (1

Taxes on adjustments

     (4      13       2       11       4       (9     —        9       4  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

   $ (71    $ (43   $ 23     $ (91   $ 204     $ 26     $ 17     $ 73     $ 320  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liability remeasurement (gains) losses:

                     

Cash flow assumption updates

   $ (6    $ (24   $ 21     $ (9   $ (303   $ (10   $ (20   $ (2   $ (335

Actual to expected experience

     110        85       (53     142       48       13       43       (86     18  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 104      $ 61     $ (32   $ 133     $ (255   $ 3     $ 23     $ (88   $ (317
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of the liability remeasurement (gains) losses to beginning reserves(2)

     0.25      0.15     (0.08 )%      0.32     (0.62 )%      —      0.06     (0.22 )%      (0.78 )% 
                         

 

(1) 

In the fourth quarter of 2022, the liability remeasurement gain of $255 million in the company’s long-term care insurance business reflected favorable assumption updates of $303 million, largely from an update to legal settlement elections attributable to the inclusion of a second legal settlement and the resulting expected reserve reduction. This settlement, comprised of PCS I and PCS II policies, represents approximately 15% of the overall block and impacts older unprofitable capped cohorts. While a favorable assumption impact was recognized in the fourth quarter of 2022, differences between actual experience and expectations will flow through earnings in subsequent periods. The company’s long-term care insurance business also updated its interest rate assumptions to reflect the impact of the higher interest rate environment.

(2) 

The ratio of the liability remeasurement (gains) losses to beginning reserves is calculated by dividing the liability remeasurement (gains) losses by the beginning liability for future policy benefits at the original discount rate as of each applicable quarter.

 

22


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

 

Statutory Impact of In-Force Rate Actions—Long-Term Care Insurance Segment

(amounts in millions)

 

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

Impact of in-force rate actions on pre-tax statutory earnings(1)

                     

Premiums, premium tax, commissions and other expenses, net(2)

   $ 231      $ 224     $ 219     $ 674     $ 224     $ 220     $ 207     $ 192     $ 843  

Reserve changes(2)

     99        104       94       297       124       120       113       132       489  
 

Settlement impacts - reserve changes

     169        97       93       359       78       9       19       148       254  

Settlement impacts - litigation expenses and settlement payments

     (102      (54     (56     (212     (45     (10     (6     (43     (104
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Settlement impacts, net

     67        43       37       147       33       (1     13       105       150  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Statutory earnings from in-force rate actions

   $ 397      $ 371     $ 350     $ 1,118     $ 381     $ 339     $ 333     $ 429     $ 1,482  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                         

 

(1) 

Includes all implemented in-force rate actions since 2012.

(2) 

Earned premium and reserve change estimates for statutory earnings reflect certain simplifying assumptions that may vary materially from actual historical results, including but not limited to, a uniform rate of coinsurance and premium taxes in addition to consistent policyholder behavior over time. Actual behavior may differ significantly from these assumptions and these impacts exclude reserve updates.

 

23


 

Life and Annuities Segment

                      

 

24


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

Adjusted Operating Income (Loss)—Life and Annuities Segment

(amounts in millions)

 

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

REVENUES:

                     

Premiums

   $ 48      $ 50     $ 62     $ 160     $ 45     $ 55     $ 60     $ 74     $ 234  

Net investment income

     261        261       264       786       268       271       265       279       1,083  

Net investment gains (losses)

     (18      (7     (10     (35     (3     (15     —        14       (4

Policy fees and other income

     158        165       163       486       167       169       164       169       669  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     449        469       479       1,397       477       480       489       536       1,982  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                     

Benefits and other changes in policy reserves

     229        240       246       715       226       247       (108     255       620  

Liability remeasurement (gains) losses

     12        9       17       38       (12     14       1       24       27  

Changes in fair value of market risk benefits and associated hedges

     (24      (19     17       (26     (56     (27     20       (41     (104

Interest credited

     127        126       126       379       125       128       126       125       504  

Acquisition and operating expenses, net of deferrals

     54        51       53       158       54       57       416       77       604  

Amortization of deferred acquisition costs and intangibles

     45        44       51       140       54       57       63       66       240  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     443        451       510       1,404       391       476       518       506       1,891  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     6        18       (31     (7     86       4       (29     30       91  

Provision (benefit) for income taxes

     1        3       (7     (3     17       —        (7     6       16  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     5        15       (24     (4     69       4       (22     24       75  
 

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

                     

Net investment (gains) losses

     18        7       10       35       3       15       —        (14     4  

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

     (26      (23     14       (35     (64     (32     8       (54     (142

Expenses related to restructuring

     —         —        —        —        (1     —        —        —        (1

Pension plan termination costs

     —         —        —        —        2       6       —        —        8  

Taxes on adjustments

     —         3       (4     (1     14       1       (1     14       28  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

   $ (3    $ 2     $ (4   $ (5   $ 23     $ (6   $ (15   $ (30   $ (28
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                         

 

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

 

   

Changes in fair value of market risk benefits and associated hedges

   $ (24    $ (19   $ 17     $ (26   $ (56   $ (27   $  20     $ (41   $ (104

Adjustment for changes in reserves, attributed fees and benefit payments

     (2      (4     (3     (9     (8     (5     (12     (13     (38
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ (26    $ (23   $ 14     $ (35   $ (64   $ (32   $ 8     $ (54   $ (142
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

25


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

 

Adjusted Operating Income (Loss)—Life and Annuities Segment—Life Insurance

(amounts in millions)

 

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

REVENUES:

                     

Premiums

   $ 48      $ 50     $ 62     $ 160     $ 45     $ 55     $ 60     $ 74     $ 234  

Net investment income

     169        165       164       498       167       166       164       164       661  

Net investment gains (losses)

     —         (1     (2     (3     1       (7     2       9       5  

Policy fees and other income

     130        136       134       400       138       138       133       134       543  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     347        350       358       1,055       351       352       359       381       1,443  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                     

Benefits and other changes in policy reserves

     184        197       199       580       181       197       217       203       798  

Liability remeasurement (gains) losses

     22        7       18       47       (10     16       4       22       32  

Interest credited

     99        98       98       295       97       98       96       94       385  

Acquisition and operating expenses, net of deferrals

     36        34       36       106       39       40       32       56       167  

Amortization of deferred acquisition costs and intangibles

     38        36       44       118       45       49       55       57       206  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     379        372       395       1,146       352       400       404       432       1,588