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Exhibit 99.2

 


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

Table of Contents

   Page  

Investor Letter

     3  

Use of Non-GAAP Measures

     4  

Results of Operations and Selected Operating Performance Measures

     5  

Financial Highlights

     6  

Consolidated Quarterly Results

  

Consolidated Net Income (Loss) by Quarter

     8  

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

     9  

Consolidated Balance Sheets

     10-11  

Consolidated Balance Sheets by Segment

     12-13  

Quarterly Results by Business

  

Adjusted Operating Income, New Insurance Written and Metrics—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 2024

 

Dear Investor,

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

Please see the accompanying press release and summary presentation posted to the company’s website at http://investor.genworth.com for additional information regarding its third quarter 2024 earnings results.

Investors are encouraged to listen to the company’s earnings call on the third quarter 2024 results at 9:00 a.m. (EDT) on November 7, 2024.

Regards,

Brian Johnson, Investor Relations

InvestorInfo@genworth.com

 

3


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

 

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). Management 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) 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 determined 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), among other key performance indicators, 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.

The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. This financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 37 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 2024

 

 

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 estimate cannot be made for the full year. Although the company used the annualized projected effective tax rate during the interim reporting period ending March 31, 2024 for all segments, the company concluded that using an actual effective tax rate reflecting actual year-to-date income (loss) provides a better estimate for its Long-Term Care Insurance and Life and Annuities segments for interim reporting. Accordingly, for the three months ended June 30, 2024 and September 30, 2024, 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. This method was also utilized for the three months ended March 31, 2023, June 30, 2023 and September 30, 2023.

This financial supplement contains selected operating performance measures including “new insurance written,” “insurance in-force” and “risk in-force,” which are commonly used in the insurance industry as measures of operating performance.

Management regularly monitors and reports new insurance written for the company’s Enact segment as a measure of volume of new business generated in a period. 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 mortgage 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 and risk in-force 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. These metrics are presented on a direct basis and exclude reinsurance. 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.

Management also regularly monitors and reports a loss ratio for the company’s Enact segment, which 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 2024

 

 

Financial Highlights

(amounts in millions, except per share data)

 

Balance Sheet Data

   September 30,
  2024  
    June 30,
  2024  
    March 31,
  2024  
    December 31,
  2023  
    September 30,
  2023  
 

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

   $ 10,182     $ 10,146     $ 10,100     $ 10,035     $ 10,276  

Total accumulated other comprehensive income (loss)(1)

     (1,871     (1,687     (2,094     (2,555     (2,220
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

   $ 8,311     $ 8,459     $ 8,006     $ 7,480     $ 8,056  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Book value per share

   $ 19.40     $ 19.49     $ 18.21     $ 16.74     $ 17.80  

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

   $ 23.77     $ 23.38     $ 22.98     $ 22.46     $ 22.70  

Common shares outstanding as of the balance sheet date

     428.4       434.0       439.6       446.8       452.7  
     Twelve months ended  

Twelve Month Rolling Average ROE

   September 30,
2024
    June 30,
2024
    March 31,
2024
    December 31,
2023
    September 30,
2023
 

U.S. GAAP Basis ROE

     0.9     0.3     0.9     0.7     6.6

Operating ROE(2)

     0.3     0.2     (0.2 )%      0.4     6.0
     Three months ended  

Quarterly Average ROE

   September 30,
2024
    June 30,
2024
    March 31,
2024
    December 31,
2023
    September 30,
2023
 

U.S. GAAP Basis ROE

     3.3     3.0     5.5     (8.4 )%      1.1

Operating ROE(2)

     1.9     4.9     3.4     (9.1 )%      1.6

Basic and Diluted Shares

   Three months ended
September 30, 2024
    Nine months ended
September 30, 2024
                   

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

     430.8       436.7        

Potentially dilutive securities:

          

Performance stock units, restricted stock units and other equity-based awards

     5.0       5.6        
  

 

 

   

 

 

       

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

     435.8       442.3        
  

 

 

   

 

 

       

 

(1) 

As of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, total accumulated other comprehensive income (loss) includes $(1,341) million, $624 million, $(334) million, $(1,439) million and $1,826 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 2024

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)

 

     2024      2023  
     3Q      2Q      1Q      Total      4Q     3Q     2Q     1Q     Total  

REVENUES:

                        

Premiums

   $ 874      $ 855      $ 875      $ 2,604      $ 904     $ 915     $ 902     $ 915     $ 3,636  

Net investment income

     777        808        782        2,367        810       801       785       787       3,183  

Net investment gains (losses)

     66        (61      49        54        38       (43     39       (11     23  

Policy fees and other income

     163        167        158        488        159       158       166       163       646  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     1,880        1,769        1,864        5,513        1,911       1,831       1,892       1,854       7,488  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                        

Benefits and other changes in policy reserves

     1,213        1,151        1,203        3,567        1,233       1,199       1,175       1,176       4,783  

Liability remeasurement (gains) losses

     34        39        (8      65        416       116       70       (15     587  

Changes in fair value of market risk benefits and associated hedges

     21        (8      (23      (10      14       (24     (19     17       (12

Interest credited

     102        125        125        352        124       127       126       126       503  

Acquisition and operating expenses, net of deferrals

     259        229        236        724        248       228       226       240       942  

Amortization of deferred acquisition costs and intangibles

     62        60        65        187        63       65       64       72       264  

Interest expense

     28        30        30        88        30       30       29       29       118  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     1,719        1,626        1,628        4,973        2,128       1,741       1,671       1,645       7,185  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     161        143        236        540        (217     90       221       209       303  

Provision (benefit) for income taxes

     40        32        66        138        (36     30       55       55       104  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     121        111        170        402        (181     60       166       154       199  

Income (loss) from discontinued operations, net of taxes(1)

     (3      (1      (1      (5      (2     —        2       —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME (LOSS)

     118        110        169        397        (183     60       168       154       199  

Less: net income attributable to noncontrolling interests

     33        34        30        97        29       31       31       32       123  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 85      $ 76      $ 139      $ 300      $ (212   $ 29     $ 137     $ 122     $ 76  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                            

Earnings (Loss) Per Share Data:

                      

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

                      

Basic

   $ 0.20      $ 0.18      $ 0.32      $ 0.70      $ (0.47   $ 0.06     $ 0.28     $ 0.25     $ 0.16  

Diluted

   $ 0.20      $ 0.17      $ 0.31      $ 0.69      $ (0.47   $ 0.06     $ 0.28     $ 0.24     $ 0.16  

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

                      

Basic

   $ 0.20      $ 0.17      $ 0.31      $ 0.69      $ (0.47   $ 0.06     $ 0.29     $ 0.25     $ 0.16  

Diluted

   $ 0.19      $ 0.17      $ 0.31      $ 0.68      $ (0.47   $ 0.06     $ 0.29     $ 0.24     $ 0.16  

Weighted-average common shares outstanding

                      

Basic

     430.8        436.4        443.0        436.7        449.4       460.5       473.2       492.3       468.8  

Diluted(2)

     435.8        440.7        450.3        442.3        449.4       466.0       478.1       500.1       474.9  

 

(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.

(2) 

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended December 31, 2023, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended December 31, 2023, as the inclusion of shares for performance stock units, restricted stock units and other equity-based awards of 6.3 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended December 31, 2023, dilutive potential weighted-average common shares outstanding would have been 455.7 million.

 

8


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

 

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

(amounts in millions, except per share amounts)

 

     2024      2023  
     3Q      2Q      1Q      Total      4Q     3Q     2Q     1Q     Total  

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

   $ 85      $ 76      $ 139      $ 300      $ (212   $ 29     $ 137     $ 122     $ 76  

Add: net income attributable to noncontrolling interests

     33        34        30        97        29       31       31       32       123  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME (LOSS)

     118        110        169        397        (183     60       168       154       199  

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

     (3      (1      (1      (5      (2     —        2       —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     121        111        170        402        (181     60       166       154       199  

Less: net income from continuing operations attributable to noncontrolling interests

     33        34        30        97        29       31       31       32       123  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     88        77        140        305        (210     29       135       122       76  
   

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

                        

Net investment (gains) losses, net(1)

     (66      60        (50      (56      (38     43       (41     11       (25

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

     17        (10      (26      (19      13       (26     (23     14       (22

(Gains) losses on early extinguishment of debt, net(3)

     (2      7        (1      4        (1     —        —        (1     (2

Expenses related to restructuring

     —         4        7        11        —        —        1       3       4  

Taxes on adjustments

     11        (13      15        13        6       (4     13       (5     10  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

   $ 48      $ 125      $ 85      $ 258      $ (230   $ 42     $ 85     $ 144     $ 41  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS):

                        

Enact segment

   $ 148      $ 165      $ 135      $ 448      $ 129     $ 134     $ 146     $ 143     $ 552  

Long-Term Care Insurance segment

     (46      (29      3        (72      (151     (71     (43     23       (242

Life and Annuities segment:

                        

Life Insurance

     (40      (23      (33      (96      (206     (25     (17     (27     (275

Fixed Annuities

     6        12        11        29        9       17       10       14       50  

Variable Annuities

     7        10        7        24        14       5       9       9       37  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Life and Annuities segment

     (27      (1      (15      (43      (183     (3     2       (4     (188
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate and Other

     (27      (10      (38      (75      (25     (18     (20     (18     (81
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

   $ 48      $ 125      $ 85      $ 258      $ (230   $ 42     $ 85     $ 144     $ 41  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                            

Earnings (Loss) Per Share Data:

                      

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

                      

Basic

   $ 0.20      $ 0.17      $ 0.31      $ 0.69      $ (0.47   $ 0.06     $ 0.29     $ 0.25     $ 0.16  

Diluted

   $ 0.19      $ 0.17      $ 0.31      $ 0.68      $ (0.47   $ 0.06     $ 0.29     $ 0.24     $ 0.16  

Adjusted operating income (loss) per share

                      

Basic

   $ 0.11      $ 0.29      $ 0.19      $ 0.59      $ (0.51   $ 0.09     $ 0.18     $ 0.29     $ 0.09  

Diluted

   $ 0.11      $ 0.28      $ 0.19      $ 0.58      $ (0.51   $ 0.09     $ 0.18     $ 0.29     $ 0.09  

Weighted-average common shares outstanding

                      

Basic

     430.8        436.4        443.0        436.7        449.4       460.5       473.2       492.3       468.8  

Diluted(4)

     435.8        440.7        450.3        442.3        449.4       466.0       478.1       500.1       474.9  

 

(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).

(3) 

(Gains) losses on early extinguishment of debt are net of the portion attributable to noncontrolling interests of $2 million for the three months ended June 30, 2024.

(4) 

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended December 31, 2023, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended December 31, 2023, as the inclusion of shares for performance stock units, restricted stock units and other equity-based awards of 6.3 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended December 31, 2023, dilutive potential weighted-average common shares outstanding would have been 455.7 million.

 

9


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

 

Consolidated Balance Sheets

(amounts in millions)

 

    September 30,
2024
     June 30,
2024
    March 31,
2024
    December 31,
2023
    September 30,
2023
 

ASSETS

            

Investments:

            

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

  $ 47,342      $ 45,233     $ 46,065     $ 46,781     $ 43,968  

Equity securities, at fair value

    458        435       427       396       363  

Commercial mortgage loans(2)

    6,570        6,692       6,748       6,829       6,818  

Less: Allowance for credit losses

    (38      (30     (29     (27     (25
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Commercial mortgage loans, net

    6,532        6,662       6,719       6,802       6,793  

Policy loans

    2,316        2,359       2,219       2,220       2,233  

Limited partnerships

    3,100        2,968       2,949       2,821       2,699  

Other invested assets

    772        702       683       731       645  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total investments

    60,520        58,359       59,062       59,751       56,701  

Cash, cash equivalents and restricted cash

    2,057        1,932       1,952       2,215       1,993  

Accrued investment income

    592        549       707       647       620  

Deferred acquisition costs

    1,831        1,884       1,934       1,988       2,042  

Intangible assets

    197        197       197       198       199  

Reinsurance recoverable

    18,626        17,739       18,315       19,054       17,623  

Less: Allowance for credit losses

    (27      (26     (27     (29     (28
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Reinsurance recoverable, net

    18,599        17,713       18,288       19,025       17,595  

Other assets

    443        518       516       489       453  

Deferred tax asset

    1,846        1,784       1,839       1,952       1,580  

Market risk benefit assets

    52        54       52       43       39  

Separate account assets

    4,623        4,553       4,645       4,509       4,244  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 90,760      $ 87,543     $ 89,192     $ 90,817     $ 85,466  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
                

 

(1) 

Amortized cost of $48,961 million, $48,998 million, $49,281 million, $49,365 million and $49,855 million as of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively, and allowance for credit losses of $—, $—, $7 million, $7 million and $6 million as of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.

(2) 

Net of unamortized balance of loan origination fees and costs of $4 million as of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023.

 

10


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

Consolidated Balance Sheets

(amounts in millions)

 

    September 30,
2024
     June 30,
2024
    March 31,
2024
    December 31,
2023
    September 30,
2023
 

LIABILITIES AND EQUITY

            

Liabilities:

            

Future policy benefits

  $ 57,303      $ 53,774     $ 55,545     $ 57,655     $ 51,740  

Policyholder account balances

    14,864        15,047       15,315       15,540       15,590  

Market risk benefit liabilities

    532        500       528       625       579  

Liability for policy and contract claims

    655        649       673       652       631  

Unearned premiums

    121        130       139       149       162  

Other liabilities

    1,859        1,973       1,889       1,768       2,038  

Long-term borrowings

    1,548        1,564       1,579       1,584       1,602  

Separate account liabilities

    4,623        4,553       4,645       4,509       4,244  

Liabilities related to discontinued operations(1)

    —         —        —        —        2  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    81,505        78,190       80,313       82,482       76,588  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

            

Common stock

    1        1       1       1       1  

Additional paid-in capital

    11,868        11,880       11,873       11,884       11,877  

Accumulated other comprehensive income (loss):

            

Change in the discount rate used to measure future policy benefits

    (1,341      624       (334     (1,439     1,826  

All other

    (530      (2,311     (1,760     (1,116     (4,046
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total accumulated other comprehensive income (loss)

    (1,871      (1,687     (2,094     (2,555     (2,220

Retained earnings

    1,512        1,428       1,352       1,213       1,426  

Treasury stock, at cost

    (3,199      (3,163     (3,126     (3,063     (3,028
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

    8,311        8,459       8,006       7,480       8,056  

Noncontrolling interests

    944        894       873       855       822  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    9,255        9,353       8,879       8,335       8,878  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

  $ 90,760      $ 87,543     $ 89,192     $ 90,817     $ 85,466  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
                

 

(1) 

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

 

11


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

 

Consolidated Balance Sheet by Segment

(amounts in millions)

 

     September 30, 2024  
     Enact     Long-Term
Care Insurance
    Life and
Annuities
    Corporate
and
Other
(1)
    Total  

ASSETS

          

Cash and investments

   $ 6,399     $ 36,590     $ 18,461     $ 1,719     $ 63,169  

Deferred acquisition costs and intangible assets

     52       858       1,103       15       2,028  

Reinsurance recoverable, net

     2       7,467       11,130       —        18,599  

Deferred tax and other assets

     146       1,772       193       178       2,289  

Market risk benefit assets

     —        —        52       —        52  

Separate account assets

     —        —        4,623       —        4,623  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 6,599     $ 46,687     $ 35,562     $ 1,912     $ 90,760  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

          

Liabilities:

          

Future policy benefits

   $ —      $ 43,998     $ 13,305     $ —      $ 57,303  

Policyholder account balances

     —        —        14,864       —        14,864  

Market risk benefit liabilities

     —        —        532       —        532  

Liability for policy and contract claims

     510       —        138       7       655  

Unearned premiums

     121       —        —        —        121  

Other liabilities

     184       758       278       639       1,859  

Borrowings

     743       —        —        805       1,548  

Separate account liabilities

     —        —        4,623       —        4,623  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     1,558       44,756       33,740       1,451       81,505  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

          

Allocated equity, excluding accumulated other comprehensive income (loss)

     4,181       2,657       2,444       900       10,182  

Allocated accumulated other comprehensive income (loss)

     (84     (726     (622     (439     (1,871
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

     4,097       1,931       1,822       461       8,311  

Noncontrolling interests

     944       —        —        —        944  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     5,041       1,931       1,822       461       9,255  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 6,599     $ 46,687     $ 35,562     $ 1,912     $ 90,760  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Includes inter-segment eliminations and other businesses, including start-up growth initiatives and certain international businesses, that are not individually reportable.

 

12


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

Consolidated Balance Sheet by Segment

(amounts in millions)

 

     June 30, 2024  
     Enact     Long-Term
Care Insurance
     Life and
Annuities
    Corporate
and
Other
(1)
    Total  

ASSETS

           

Cash and investments

   $ 6,115     $ 35,095      $ 18,061     $ 1,569     $ 60,840  

Deferred acquisition costs and intangible assets

     50       872        1,144       15       2,081  

Reinsurance recoverable, net

     1       6,994        10,718       —        17,713  

Deferred tax and other assets

     185       1,598        299       220       2,302  

Market risk benefit assets

     —        —         54       —        54  

Separate account assets

     —        —         4,553       —        4,553  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 6,351     $ 44,559      $ 34,829     $ 1,804     $ 87,543  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

           

Liabilities:

           

Future policy benefits

   $ —      $ 41,024      $ 12,750     $ —      $ 53,774  

Policyholder account balances

     —        —         15,047       —        15,047  

Market risk benefit liabilities

     —        —         500       —        500  

Liability for policy and contract claims

     508       —         135       6       649  

Unearned premiums

     130       —         —        —        130  

Other liabilities

     135       934        288       616       1,973  

Borrowings

     742       —         —        822       1,564  

Separate account liabilities

     —        —         4,553       —        4,553  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

     1,515       41,958        33,273       1,444       78,190  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Equity:

           

Allocated equity, excluding accumulated other comprehensive income (loss)

     4,136       2,593        2,541       876       10,146  

Allocated accumulated other comprehensive income (loss)

     (194     8        (985     (516     (1,687
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

     3,942       2,601        1,556       360       8,459  

Noncontrolling interests

     894       —         —        —        894  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total equity

     4,836       2,601        1,556       360       9,353  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 6,351     $ 44,559      $ 34,829     $ 1,804     $ 87,543  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(1) 

Includes inter-segment eliminations and other businesses, including start-up growth initiatives and certain international businesses, that are not individually reportable.

 

13


 

Enact Segment

  

 

 

 

14


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

Adjusted Operating Income—Enact Segment

(amounts in millions)

 

     2024     2023  
     3Q      2Q     1Q     Total     4Q     3Q      2Q     1Q     Total  

REVENUES:

                      

Premiums

   $ 249      $ 244     $ 241     $ 734     $ 240     $ 243      $ 239     $ 235     $ 957  

Net investment income

     62        59       57       178       57       55        50       46       208  

Net investment gains (losses)

     (1      (8     (6     (15     (1     —         (13     —        (14

Policy fees and other income

     —         3       —        3       —        1        1       —        2  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     310        298       292       900       296       299        277       281       1,153  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                      

Benefits and other changes in policy reserves

     12        (17     20       15       24       18        (4     (11     27  

Acquisition and operating expenses, net of deferrals

     53        65       51       169       56       52        52       52       212  

Amortization of deferred acquisition costs and intangibles

     3        2       2       7       3       3        2       3       11  

Interest expense

     13        13       13       39       13       13        13       13       52  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     81        63       86       230       96       86        63       57       302  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     229        235       206       670       200       213        214       224       851  

Provision for income taxes

     49        51       45       145       43       48        46       49       186  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS

     180        184       161       525       157       165        168       175       665  

Less: net income attributable to noncontrolling interests

     33        34       30       97       29       31        31       32       123  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

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

     147        150       131       428       128       134        137       143       542  
   

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

                      

Net investment (gains) losses, net(1)

     1        7       5       13       1       —         11       —        12  

(Gains) losses on early extinguishment of debt, net(2)

     —         9       —        9       —        —         —        —        —   

Expenses related to restructuring

     —         3       —        3       —        —         —        —        —   

Taxes on adjustments

     —         (4     (1     (5     —        —         (2     —        (2
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 148      $ 165     $ 135     $ 448     $ 129     $ 134      $ 146     $ 143     $ 552  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
                          
                        

Direct Primary New Insurance Written (NIW)

   $ 13,591      $ 13,619     $ 10,526     $ 37,736     $ 10,453     $ 14,391      $ 15,083     $ 13,154     $ 53,081  
                          

 

(1) 

Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million in the second and first quarters of 2024 and $2 million in the second quarter of 2023.

(2) 

(Gains) losses on early extinguishment of debt are net of the portion attributable to noncontrolling interests of $2 million for the three months ended June 30, 2024.

 

15


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

Direct Primary New Insurance Written Metrics—Enact Segment

(amounts in millions)

 

    2024     2023  
    3Q     2Q     1Q     4Q     3Q     2Q     1Q  
    Direct
Primary
NIW
     % of
Direct
Primary
NIW
    Direct
Primary
NIW
     % of
Direct
Primary
NIW
    Direct
Primary
NIW
     % of
Direct
Primary
NIW
    Direct
Primary
NIW
     % of
Direct
Primary
NIW
    Direct
Primary
NIW
     % of
Direct
Primary
NIW
    Direct
Primary
NIW
     % of
Direct
Primary
NIW
    Direct
Primary
NIW
     % of
Direct
Primary
NIW
 

Payment Type

                                    

Monthly

  $ 12,851        95   $ 13,177        97   $ 10,034        95   $ 10,187        98   $ 14,099        98   $ 14,774        98   $ 12,809        97

Single

    722        5       422        3       475        5       246        2       269        2       281        2       318        3  

Other(1)

    18        —        20        —        17        —        20        —        23        —        28        —        27        —   
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

  $ 13,591        100   $ 13,619        100   $ 10,526        100   $ 10,453        100   $ 14,391        100   $ 15,083        100   $ 13,154        100
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Origination

                                    

Purchase

  $ 12,982        96   $ 13,173        97   $ 10,072        96   $ 10,169        97   $ 14,073        98   $ 14,720        98   $ 12,761        97

Refinance

    609        4       446        3       454        4       284        3       318        2       363        2       393        3  
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

  $ 13,591        100   $ 13,619        100   $ 10,526        100   $ 10,453        100   $ 14,391        100   $ 15,083        100   $ 13,154        100
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

FICO Scores

                                    

Over 760

  $ 6,433        47   $ 6,471        47   $ 5,218        49   $ 5,086        49   $ 6,679        46   $ 6,911        46   $ 6,004        46

740 - 759

    2,172        16       2,113        16       1,664        16       1,680        16       2,438        17       2,608        17       2,268        17  

720 - 739

    1,855        14       1,839        13       1,368        13       1,378        13       1,928        13       2,097        14       1,817        14  

700 - 719

    1,398        10       1,334        10       990        9       997        10       1,422        10       1,499        10       1,296        10  

680 - 699

    905        7       893        7       629        6       664        6       974        7       1,060        7       954        7  

660 - 679(2)

    446        3       562        4       388        4       409        4       592        4       568        4       517        4  

640 - 659

    268        2       289        2       193        2       181        2       282        2       260        2       229        2  

620 - 639

    105        1       111        1       73        1       53        —        74        1       76        —        65        —   

<620

    9        —        7        —        3        —        5        —        2        —        4        —        4        —   
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

  $ 13,591        100   $ 13,619        100   $ 10,526        100   $ 10,453        100   $ 14,391        100   $ 15,083        100   $ 13,154        100
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Loan-To-Value Ratio

                                    

95.01% and above

  $ 2,766        20   $ 2,707        20   $ 2,262        21   $ 1,820        18   $ 2,677        18   $ 2,692        18   $ 2,106        16

90.01% to 95.00%

    5,232        39       5,228        38       3,876        37       3,759        36       5,431        38       5,743        38       4,928        38  

85.01% to 90.00%

    4,044        30       4,190        31       3,177        30       3,489        33       4,568        32       4,753        31       4,390        33  

85.00% and below

    1,549        11       1,494        11       1,211        12       1,385        13       1,715        12       1,895        13       1,730        13  
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

  $ 13,591        100   $ 13,619        100   $ 10,526        100   $ 10,453        100   $ 14,391        100   $ 15,083        100   $ 13,154        100
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Debt-To-Income Ratio

                                    

45.01% and above

  $ 3,742        28   $ 4,039        30   $ 3,165        30   $ 3,158        30   $ 4,437        31   $ 4,467        30   $ 3,538        27

38.01% to 45.00%

    5,026        37       5,036        37       3,824        36       3,816        37       4,936        34       5,214        34       4,940        38  

38.00% and below

    4,823        35       4,544        33       3,537        34       3,479        33       5,018        35       5,402        36       4,676        35  
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

  $ 13,591        100   $ 13,619        100   $ 10,526        100   $ 10,453        100   $ 14,391        100   $ 15,083        100   $ 13,154        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 2024

 

Other Metrics—Enact Segment

(dollar amounts in millions)

 

     2024     2023  
     3Q     2Q     1Q     Total     4Q     3Q     2Q     1Q     Total  
 

Direct Primary Insurance In-Force

   $ 268,003     $ 266,060     $ 263,645       $ 262,937     $ 262,014     $ 257,816     $ 252,516    
 

Direct Risk In-Force

                    

Primary

   $ 69,611     $ 68,878     $ 67,950       $ 67,529     $ 67,056     $ 65,714     $ 64,106    

Pool

     60       65       67         69       70       73       76    
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Total Direct Risk In-Force

   $ 69,671     $ 68,943     $ 68,017       $ 67,598     $ 67,126     $ 65,787     $ 64,182    
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   
 

Expense Ratio(1)

     22     28     22     24     25     23     23     23     23
 

Primary Persistency Rate

     83     83     85     83     86     84     84     85     85
 

Combined Risk To Capital Ratio(2)

     10.5:1       10.8:1       11.2:1         11.6:1       11.6:1       11.8:1       12.6:1    
 

EMICO Risk To Capital Ratio(2),(3)

     10.4:1       10.8:1       11.2:1         11.6:1       11.6:1       11.9:1       12.7:1    
 

PMIERs Available Assets(4)

   $ 5,194     $ 5,024     $ 4,853       $ 5,006     $ 5,268     $ 5,093     $ 5,357    
 

PMIERs Required Assets(4)

   $ 3,004     $ 2,967     $ 2,970       $ 3,119     $ 3,251     $ 3,135     $ 3,259    
 

Available Assets Above PMIERs Requirements(4)

   $ 2,190     $ 2,057     $ 1,883       $ 1,887     $ 2,017     $ 1,958     $ 2,098    
 

PMIERs Sufficiency Ratio(4)

     173     169     163       161     162     162     164  
 

Average Primary Loan Size (in thousands)

   $ 277     $ 274     $ 272       $ 270     $ 268     $ 265     $ 262    

 

(1) 

The ratio of an insurer’s general expenses to net earned premiums. Enact’s general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. The expense ratio is calculated using whole dollars and may be different than the ratio calculated using the rounded numbers included herein. In the second quarter of 2024, the company incurred an $11 million loss on the early redemption of Enact Holdings, Inc.’s senior notes due in 2025, which increased the expense ratio by five percentage points for the three months ended June 30, 2024 and two percentage points for the nine months ended September 30, 2024.

(2) 

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.

(3) 

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

(4) 

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.

 

17


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

Loss Metrics—Enact Segment

(amounts in millions)

 

     2024     2023  
     3Q      2Q     1Q     Total     4Q     3Q     2Q     1Q     Total  

Average Direct Primary Paid Claim (in thousands)(1)

   $ 39.7      $ 39.3     $ 37.5       $ 37.2     $ 38.7     $ 37.4     $ 39.0    

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

   $ 21.9      $ 24.3     $ 24.9       $ 23.3     $ 23.9     $ 25.0     $ 24.8    
 

Reserves:

                     

Direct primary case(3)

   $ 461      $ 462     $ 486       $ 477     $ 460     $ 452     $ 462    

All other(3)

     49        46       46         41       41       38       40    
  

 

 

    

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Total Reserves

   $ 510      $ 508     $ 532       $ 518     $ 501     $ 490     $ 502    
  

 

 

    

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   
 

Beginning Reserves

   $ 508      $ 532     $ 518     $ 518     $ 501     $ 490     $ 502     $ 519     $ 519  

Paid claims

     (10      (7     (6     (23     (7     (7     (8     (6     (28

Increase (decrease) in reserves

     12        (17     20       15       24       18       (4     (11     27  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending Reserves

   $ 510      $ 508     $ 532     $ 510     $ 518     $ 501     $ 490     $ 502     $ 518  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss Ratio(4)

     5      (7 )%      8     2     10     7     (2 )%      (5 )%      3
                         

 

(1) 

Paid claims on direct primary case reserves divided by the number of paid claims. Average direct primary paid claims in the third, second and first quarters of 2024 and the fourth quarter of 2023 include payments in relation to agreements on non-performing loans. Prior year amounts have been reclassified to conform to the current year presentation.

(2) 

Direct primary case reserves divided by primary delinquency count.

(3) 

Direct primary case reserves exclude loss adjustment expenses (LAE), pool, incurred but not reported (IBNR) and reinsurance reserves. Other includes LAE, pool, IBNR and reinsurance reserves.

(4) 

The loss ratio is calculated using whole dollars and may be different than the ratio calculated using the rounded numbers included herein.

 

18


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

Delinquency Metrics—Enact Segment

(dollar amounts in millions)

 

    2024     2023  
    3Q     2Q     1Q     Total     4Q     3Q     2Q     1Q     Total  

Primary Loans

                   

Primary loans in-force

    967,501         969,767         969,866          974,516        977,832        973,280         965,544    

Primary delinquent loans

    21,027       19,051       19,492         20,432       19,241       18,065       18,633    

Primary delinquency rate

    2.17     1.96     2.01       2.10     1.97     1.86     1.93  
 

Beginning Number of Primary Delinquencies

    19,051       19,492       20,432       20,432       19,241       18,065       18,633       19,943       19,943  

New delinquencies

    12,964       10,461       11,395       34,820       11,706       11,107       9,205       9,599       41,617  

Delinquency cures

    (10,749     (10,731     (12,160     (33,640     (10,317     (9,778     (9,609     (10,771     (40,475

Paid claims

    (220     (160     (172     (552     (186     (147     (156     (126     (615

Rescissions and claim denials

    (19     (11     (3     (33     (12     (6     (8     (12     (38
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending Number of Primary Delinquencies

    21,027       19,051       19,492         21,027       20,432       19,241       18,065       18,633         20,432  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Composition of Cures

                   

Reported delinquent and cured-intraquarter

    2,304       1,886       2,726         2,058       1,877       1,661       2,016    

Number of missed payments delinquent prior to cure:

                   

3 payments or less

    5,556       5,587       5,994         5,235       4,792       4,516       5,238    

4 - 11 payments

    2,305       2,573       2,749         2,331       2,265       2,448       2,431    

12 payments or more

    584       685       691         693       844       984       1,086    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Total

    10,749       10,731       12,160         10,317       9,778       9,609       10,771    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Primary Delinquencies by Missed Payment Status

                   

3 payments or less

    11,132       9,704       9,506         10,166       9,398       8,162       7,876    

4 - 11 payments

    6,831       6,306       6,853         6,934       6,381       6,229       6,714    

12 payments or more

    3,064       3,041       3,133         3,332       3,462       3,674       4,043    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

Primary Delinquencies

    21,027       19,051       19,492         20,432       19,241       18,065       18,633    
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   
                       
    September 30, 2024                                      

Direct Primary Case Reserves(1) and Percentage

Reserved by Payment Status

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

3 payments or less in default

  $ 102     $ 715       14            

4 - 11 payments in default

    188       477       39            

12 payments or more in default

    171       202       85            
 

 

 

   

 

 

               

Total

  $ 461     $ 1,394       33            
 

 

 

   

 

 

               
    December 31, 2023                                      

Direct Primary Case Reserves(1) and Percentage

Reserved by Payment Status

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

3 payments or less in default

  $ 88     $ 629       14            

4 - 11 payments in default

    205       469       44            

12 payments or more in default

    184       200       92            
 

 

 

   

 

 

               

Total

  $ 477     $ 1,298       37            
 

 

 

   

 

 

               

 

(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 2024

 

Portfolio Quality Metrics—Enact Segment

(amounts in millions)

 

                                                                                                                                                                       
     September 30, 2024  

Policy Year

   % of Direct
Primary Case
Reserves
(1)
    Direct  Primary
Insurance

In-Force
    % of Total     Direct
Primary Risk
In-Force
     % of Total     Delinquency
Rate
 

2008 and prior

     12   $ 5,011       2   $ 1,296        2     8.16

2009-2016

     7       5,933       2       1,552        2       4.30

2017

     4       4,205       2       1,114        2       4.06

2018

     5       5,037       2       1,297        2       4.23

2019

     8       11,924       4       3,113        4       3.02

2020

     15       36,958       14       10,042        14       1.92

2021

     22       60,342       22       15,710        23       1.90

2022

     18       54,878       20       13,892        20       1.99

2023

     8       47,387       18       12,271        18       1.27

2024

     1       36,328       14       9,324        13       0.27
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

Total

     100   $ 268,003        100   $ 69,611        100     2.17
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

                                                                                                                                                                       
     September 30, 2024     December 31, 2023     September 30, 2023  
     Direct Primary
Risk In-Force
    % of Total     Direct Primary
Risk In-Force
     % of Total     Direct Primary
Risk In-Force
     % of Total  

Loan-to-value ratio

              

95.01% and above

   $ 14,141       20   $ 12,878        19   $ 12,595        19

90.01% to 95.00%

     32,579       47       31,781        47       31,696        47  

85.01% to 90.00%

     19,649       28       19,163        28       18,945        28  

85.00% and below

     3,242       5       3,707        6       3,820        6  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 69,611        100   $ 67,529        100   $ 67,056        100
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

                                                                                                                                                                       
     September 30, 2024     December 31, 2023     September 30, 2023  
     Direct Primary
Risk In-Force
    % of Total     Direct Primary
Risk In-Force
     % of Total     Direct Primary
Risk In-Force
     % of Total  

Credit Quality

              

Over 760

   $ 29,644       43   $ 28,363        42   $ 28,014        42

740 - 759

     11,423       17       11,096        17       11,009        17  

720 - 739

     9,912       14       9,621        14       9,553        14  

700 - 719

     7,751       11       7,623        11       7,615        12  

680 - 699

     5,553       8       5,557        8       5,582        8  

660 - 679(2)

     2,951       4       2,908        4       2,901        4  

640 - 659

     1,592       2       1,565        3       1,569        2  

620 - 639

     636       1       635        1       647        1  

<620

     149       —        161        —        166        —   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 69,611        100   $ 67,529        100   $ 67,056        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 2024

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

(amounts in millions)

 

    2024      2023  
    3Q      2Q      1Q      Total      4Q(1)     3Q     2Q     1Q     Total  

REVENUES:

                       

Premiums

  $ 581      $ 564      $ 578      $ 1,723      $ 615     $ 621     $ 611     $ 616     $ 2,463  

Net investment income

    483        494        464        1,441        489       482       470       473       1,914  

Net investment gains (losses)

    71        (47      63        87        64       (21     62       9       114  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

    1,135        1,011        1,105        3,251        1,168       1,082       1,143       1,098       4,491  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                       

Benefits and other changes in policy reserves

    949        934        936        2,819        964       953       941       944       3,802  

Liability remeasurement (gains) losses

    28        43        (16      55        188       104       61       (32     321  

Acquisition and operating expenses, net of deferrals

    118        82        102        302        116       109       108       119       452  

Amortization of deferred acquisition costs and intangibles

    17        18        17        52        18       17       18       18       71  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

    1,112        1,077        1,039        3,228        1,286       1,183       1,128       1,049       4,646  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

    23        (66      66        23        (118     (101     15       49       (155

Provision (benefit) for income taxes

    13        —         14        27        (18     (13     10       18       (3
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

    10        (66      52        (4      (100     (88     5       31       (152

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

                       

Net investment (gains) losses

    (71      47        (63      (87      (64     21       (62     (9     (114

Expenses related to restructuring

    —         —         1        1        —        —        1       (1     —   

Taxes on adjustments

    15        (10      13        18        13       (4     13       2       24  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

  $ (46    $ (29    $ 3      $ (72    $ (151   $ (71   $ (43   $ 23     $ (242
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liability remeasurement (gains) losses:

                       

Cash flow assumption updates

  $ (63    $ (24    $ (2    $ (89    $ 61     $ (6   $ (24   $ 21     $ 52  

Actual to expected experience

    91        67        (14      144        127       110       85       (53     269  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 28      $ 43      $ (16    $ 55      $ 188     $ 104     $ 61     $ (32   $ 321  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    0.07      0.10      (0.04 )%       0.13      0.45     0.25     0.15     (0.08 )%      0.77
                           

 

(1) 

In the fourth quarter of 2023, the liability remeasurement loss of $188 million in the company’s long-term care insurance business reflected an unfavorable impact from annual cash flow assumption updates of $61 million, including updates to its healthy life assumptions to better align near-term experience for cost of care, mortality, incidence and lapse. These adverse assumption updates were partially offset by a favorable update to disabled life mortality assumptions to reflect an expectation that mortality will continue at elevated levels in the near term post the coronavirus pandemic (COVID-19). The company also evaluated its assumptions regarding expectations of future premium rate increase approvals and benefit reductions and made no significant changes to its 2023 multi-year in-force rate action plan. However, the company did increase its assumption for future approvals and benefit reductions given its current plans for rate increase filings and historical experience regarding approvals and regulatory support, as well as benefit reductions and legal settlement results. In addition, the company updated its assumptions for the third long-term care insurance legal settlement primarily impacting its Choice II policies, which represents approximately 35% of the overall block. As previously disclosed, the third legal settlement was mostly comprised of profitable uncapped cohorts and therefore had a muted favorable impact on the liability remeasurement (gain) loss in the income statement.

(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 locked-in discount rate as of each applicable quarter.

 

22


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

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

(amounts in millions)

 

     2024     2023  
     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)

   $ 232      $ 220      $ 217     $ 669     $ 232     $ 231     $ 224     $ 219     $ 906  

Reserve changes(2)

     90        102        114       306       119       99       104       94       416  
 

Settlement impacts - reserve changes

     133        222        240       595       232       169       97       93       591  

Settlement impacts - litigation expenses and settlement payments

     (45      (99      (109     (253     (116     (102     (54     (56     (328
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Settlement impacts, net

     88        123        131       342       116       67       43       37       263  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Statutory earnings from in-force rate actions

   $ 410      $ 445      $ 462     $ 1,317     $ 467     $ 397     $ 371     $ 350     $ 1,585  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                          

 

(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 2024

Adjusted Operating Income (Loss)—Life and Annuities Segment

(amounts in millions)

 

     2024      2023  
     3Q      2Q      1Q     Total      4Q(1)     3Q     2Q     1Q     Total  

REVENUES:

                       

Premiums

   $ 42      $ 44      $ 53     $ 139      $ 47     $ 48     $ 50     $ 62     $ 207  

Net investment income

     228        250        254       732        256       261       261       264       1,042  

Net investment gains (losses)

     (4      (4      (4     (12      (14     (18     (7     (10     (49

Policy fees and other income

     163        164        158       485        160       158       165       163       646  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     429        454        461       1,344        449       449       469       479       1,846  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                       

Benefits and other changes in policy reserves

     253        237        250       740        248       229       240       246       963  

Liability remeasurement (gains) losses

     6        (4      8       10        228       12       9       17       266  

Changes in fair value of market risk benefits and associated hedges

     21        (8      (23     (10      14       (24     (19     17       (12

Interest credited

     102        125        125       352        124       127       126       126       503  

Acquisition and operating expenses, net of deferrals

     63        60        54       177        55       54       51       53       213  

Amortization of deferred acquisition costs and intangibles

     41        39        45       125        41       45       44       51       181  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     486        449        459       1,394        710       443       451       510       2,114  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (57      5        2       (50      (261     6       18       (31     (268

Provision (benefit) for income taxes

     (13      1        —        (12      (56     1       3       (7     (59
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     (44      4        2       (38      (205     5       15       (24     (209
 

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

                       

Net investment (gains) losses

     4        4        4       12        14       18       7       10       49  

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

     17        (10      (26     (19      13       (26     (23     14       (22

Taxes on adjustments

     (4      1        5       2        (5     —        3       (4     (6
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

   $ (27    $ (1    $ (15   $ (43    $ (183   $ (3   $ 2     $ (4   $ (188
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                           

 

(1)  In the fourth quarter of 2023, the liability remeasurement loss of $228 million was primarily driven by an unfavorable impact from cash flow assumption updates in the company’s life insurance products reflecting updates to persistency and mortality assumptions. Additional information is included on page 26.

 

   

(2)  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

   $ 21      $ (8    $ (23   $ (10    $ 14     $ (24   $ (19   $ 17     $ (12

Adjustment for changes in reserves, attributed fees and benefit payments

     (4      (2      (3     (9      (1     (2     (4     (3     (10
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 17      $ (10    $ (26   $ (19    $ 13     $ (26   $ (23   $ 14     $ (22
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

25


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

 

Adjusted Operating Loss—Life and Annuities Segment—Life Insurance

(amounts in millions)

 

     2024      2023  
     3Q      2Q      1Q      Total      4Q(1),(2)      3Q     2Q     1Q     Total  

REVENUES:

                         

Premiums

   $ 42      $ 44      $ 53      $ 139      $ 47      $ 48     $ 50     $ 62     $ 207  

Net investment income

     146        167        167        480        167        169       165       164       665  

Net investment gains (losses)

     (2      5        5        8        (6      —        (1     (2     (9

Policy fees and other income

     135        136        129        400        131        130       136       134       531  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     321        352        354        1,027        339        347       350       358       1,394  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                         

Benefits and other changes in policy reserves

     213        200        208        621        207        184       197       199       787  

Liability remeasurement (gains) losses

     5        —         11        16        229        22       7       18       276  

Interest credited

     78        101        99        278        98        99       98       98       393  

Acquisition and operating expenses, net of deferrals

     41        43        35        119        38