Exhibit 99.2
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
Table of Contents |
Page | |||
3 | ||||
4 | ||||
Results of Operations and Selected Operating Performance Measures |
5 | |||
6 | ||||
Consolidated Quarterly Results |
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8 | ||||
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss) |
9 | |||
10-11 | ||||
12-13 | ||||
Quarterly Results by Business |
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Adjusted Operating Income, New Insurance Written and MetricsEnact Segment |
15-20 | |||
22-23 | ||||
25-28 | ||||
30 | ||||
Additional Financial Data |
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32 | ||||
33 | ||||
34 | ||||
35 | ||||
Reconciliations of Non-GAAP Measures |
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37 | ||||
38 | ||||
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
Thank you for your continued interest in Genworth Financial, Inc.
Please see the accompanying press release and summary presentation posted to the companys website at http://investor.genworth.com for additional information regarding its third quarter 2024 earnings results.
Investors are encouraged to listen to the companys 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
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 companys 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 companys 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 companys 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 companys 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 segments 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 companys 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 companys 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 companys 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 companys 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
(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 |
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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 | ) | ||||||||||
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Total Genworth Financial, Inc.s stockholders equity |
$ | 8,311 | $ | 8,459 | $ | 8,006 | $ | 7,480 | $ | 8,056 | ||||||||||
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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 |
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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 |
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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 |
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Weighted-average common shares used in basic earnings per share calculations |
430.8 | 436.7 | ||||||||||||||||||
Potentially dilutive securities: |
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Performance stock units, restricted stock units and other equity-based awards |
5.0 | 5.6 | ||||||||||||||||||
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Weighted-average common shares used in diluted earnings per share calculations |
435.8 | 442.3 | ||||||||||||||||||
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(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: |
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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 | |||||||||||||||||||||||||||
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Total revenues |
1,880 | 1,769 | 1,864 | 5,513 | 1,911 | 1,831 | 1,892 | 1,854 | 7,488 | |||||||||||||||||||||||||||
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BENEFITS AND EXPENSES: |
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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 | |||||||||||||||||||||||||||
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Total benefits and expenses |
1,719 | 1,626 | 1,628 | 4,973 | 2,128 | 1,741 | 1,671 | 1,645 | 7,185 | |||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||
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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 | | | ||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||
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NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
$ | 85 | $ | 76 | $ | 139 | $ | 300 | $ | (212 | ) | $ | 29 | $ | 137 | $ | 122 | $ | 76 | |||||||||||||||||
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Earnings (Loss) Per Share Data: |
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Income (loss) from continuing operations available to Genworth Financial, Inc.s common stockholders per share |
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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 |
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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 |
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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 companys 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 | |||||||||||||||||||||||||||
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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 | | | ||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||
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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: |
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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 | ||||||||||||||||||||||||
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ADJUSTED OPERATING INCOME (LOSS) |
$ | 48 | $ | 125 | $ | 85 | $ | 258 | $ | (230 | ) | $ | 42 | $ | 85 | $ | 144 | $ | 41 | |||||||||||||||||
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ADJUSTED OPERATING INCOME (LOSS): |
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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: |
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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 | |||||||||||||||||||||||||||
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Total Life and Annuities segment |
(27 | ) | (1 | ) | (15 | ) | (43 | ) | (183 | ) | (3 | ) | 2 | (4 | ) | (188 | ) | |||||||||||||||||||
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Corporate and Other |
(27 | ) | (10 | ) | (38 | ) | (75 | ) | (25 | ) | (18 | ) | (20 | ) | (18 | ) | (81 | ) | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|||||||||||||||||||
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
(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
(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 companys 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 IncomeEnact 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 MetricsEnact 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 |
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Payment Type |
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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 | | ||||||||||||||||||||||||||||||||||||||||||
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Total |
$ | 13,591 | 100 | % | $ | 13,619 | 100 | % | $ | 10,526 | 100 | % | $ | 10,453 | 100 | % | $ | 14,391 | 100 | % | $ | 15,083 | 100 | % | $ | 13,154 | 100 | % | ||||||||||||||||||||||||||||
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Origination |
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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 | ||||||||||||||||||||||||||||||||||||||||||
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Total |
$ | 13,591 | 100 | % | $ | 13,619 | 100 | % | $ | 10,526 | 100 | % | $ | 10,453 | 100 | % | $ | 14,391 | 100 | % | $ | 15,083 | 100 | % | $ | 13,154 | 100 | % | ||||||||||||||||||||||||||||
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FICO Scores |
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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 | | ||||||||||||||||||||||||||||||||||||||||||
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Total |
$ | 13,591 | 100 | % | $ | 13,619 | 100 | % | $ | 10,526 | 100 | % | $ | 10,453 | 100 | % | $ | 14,391 | 100 | % | $ | 15,083 | 100 | % | $ | 13,154 | 100 | % | ||||||||||||||||||||||||||||
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Loan-To-Value Ratio |
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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 | ||||||||||||||||||||||||||||||||||||||||||
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Total |
$ | 13,591 | 100 | % | $ | 13,619 | 100 | % | $ | 10,526 | 100 | % | $ | 10,453 | 100 | % | $ | 14,391 | 100 | % | $ | 15,083 | 100 | % | $ | 13,154 | 100 | % | ||||||||||||||||||||||||||||
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Debt-To-Income Ratio |
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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 | ||||||||||||||||||||||||||||||||||||||||||
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Total |
$ | 13,591 | 100 | % | $ | 13,619 | 100 | % | $ | 10,526 | 100 | % | $ | 10,453 | 100 | % | $ | 14,391 | 100 | % | $ | 15,083 | 100 | % | $ | 13,154 | 100 | % | ||||||||||||||||||||||||||||
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(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 MetricsEnact 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 |
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Primary |
$ | 69,611 | $ | 68,878 | $ | 67,950 | $ | 67,529 | $ | 67,056 | $ | 65,714 | $ | 64,106 | ||||||||||||||||||||||
Pool |
60 | 65 | 67 | 69 | 70 | 73 | 76 | |||||||||||||||||||||||||||||
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Total Direct Risk In-Force |
$ | 69,671 | $ | 68,943 | $ | 68,017 | $ | 67,598 | $ | 67,126 | $ | 65,787 | $ | 64,182 | ||||||||||||||||||||||
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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 insurers general expenses to net earned premiums. Enacts 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 insurers risk in-force to 25 times the total of the insurers 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 companys U.S. mortgage insurance subsidiaries. |
(3) | Enact Mortgage Insurance Corporation (EMICO), the companys 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 MetricsEnact 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: |
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Direct primary case(3) |
$ | 461 | $ | 462 | $ | 486 | $ | 477 | $ | 460 | $ | 452 | $ | 462 | ||||||||||||||||||||||
All other(3) |
49 | 46 | 46 | 41 | 41 | 38 | 40 | |||||||||||||||||||||||||||||
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Total Reserves |
$ | 510 | $ | 508 | $ | 532 | $ | 518 | $ | 501 | $ | 490 | $ | 502 | ||||||||||||||||||||||
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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 | ||||||||||||||||||||||||
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Ending Reserves |
$ | 510 | $ | 508 | $ | 532 | $ | 510 | $ | 518 | $ | 501 | $ | 490 | $ | 502 | $ | 518 | ||||||||||||||||||
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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 MetricsEnact Segment
(dollar amounts in millions)
2024 | 2023 | |||||||||||||||||||||||||||||||||||
3Q | 2Q | 1Q | Total | 4Q | 3Q | 2Q | 1Q | Total | ||||||||||||||||||||||||||||
Primary Loans |
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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 | ) | ||||||||||||||||||
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Ending Number of Primary Delinquencies |
21,027 | 19,051 | 19,492 | 21,027 | 20,432 | 19,241 | 18,065 | 18,633 | 20,432 | |||||||||||||||||||||||||||
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Composition of Cures |
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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: |
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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 | |||||||||||||||||||||||||||||
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Total |
10,749 | 10,731 | 12,160 | 10,317 | 9,778 | 9,609 | 10,771 | |||||||||||||||||||||||||||||
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Primary Delinquencies by Missed Payment Status |
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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 | |||||||||||||||||||||||||||||
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Primary Delinquencies |
21,027 | 19,051 | 19,492 | 20,432 | 19,241 | 18,065 | 18,633 | |||||||||||||||||||||||||||||
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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 |
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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 | % | ||||||||||||||||||||||||||||||||
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Total |
$ | 461 | $ | 1,394 | 33 | % | ||||||||||||||||||||||||||||||
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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 |
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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 | % | ||||||||||||||||||||||||||||||||
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Total |
$ | 477 | $ | 1,298 | 37 | % | ||||||||||||||||||||||||||||||
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(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 MetricsEnact 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 | % | |||||||||||||||||
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|||||||||||||||
Total |
100 | % | $ | 268,003 | 100 | % | $ | 69,611 | 100 | % | 2.17 | % | ||||||||||||
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|
|
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 | ||||||||||||||||||
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Total |
$ | 69,611 | 100 | % | $ | 67,529 | 100 | % | $ | 67,056 | 100 | % | ||||||||||||
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|
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 | | ||||||||||||||||||
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Total |
$ | 69,611 | 100 | % | $ | 67,529 | 100 | % | $ | 67,056 | 100 | % | ||||||||||||
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(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 | |||||||||||||||||||||||||
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Total revenues |
1,135 | 1,011 | 1,105 | 3,251 | 1,168 | 1,082 | 1,143 | 1,098 | 4,491 | |||||||||||||||||||||||||||
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|||||||||||||||||||
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 | |||||||||||||||||||||||||||
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Total benefits and expenses |
1,112 | 1,077 | 1,039 | 3,228 | 1,286 | 1,183 | 1,128 | 1,049 | 4,646 | |||||||||||||||||||||||||||
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|||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
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|||||||||||||||||||
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 | |||||||||||||||||||||||||
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|||||||||||||||||||
ADJUSTED OPERATING INCOME (LOSS) |
$ | (46 | ) | $ | (29 | ) | $ | 3 | $ | (72 | ) | $ | (151 | ) | $ | (71 | ) | $ | (43 | ) | $ | 23 | $ | (242 | ) | |||||||||||
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|||||||||||||||||||
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 | |||||||||||||||||||||||||
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Total |
$ | 28 | $ | 43 | $ | (16 | ) | $ | 55 | $ | 188 | $ | 104 | $ | 61 | $ | (32 | ) | $ | 321 | ||||||||||||||||
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|||||||||||||||||||
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 companys 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 ActionsLong-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 | ) | ||||||||||||||||||
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|||||||||||||||||||
Settlement impacts, net |
88 | 123 | 131 | 342 | 116 | 67 | 43 | 37 | 263 | |||||||||||||||||||||||||||
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|||||||||||||||||||
Statutory earnings from in-force rate actions |
$ | 410 | $ | 445 | $ | 462 | $ | 1,317 | $ | 467 | $ | 397 | $ | 371 | $ | 350 | $ | 1,585 | ||||||||||||||||||
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|||||||||||||||||||
(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 | |||||||||||||||||||||||||||
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|||||||||||||||||||
Total revenues |
429 | 454 | 461 | 1,344 | 449 | 449 | 469 | 479 | 1,846 | |||||||||||||||||||||||||||
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|||||||||||||||||||
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 | |||||||||||||||||||||||||||
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|||||||||||||||||||
Total benefits and expenses |
486 | 449 | 459 | 1,394 | 710 | 443 | 451 | 510 | 2,114 | |||||||||||||||||||||||||||
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|||||||||||||||||||
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 | ) | ||||||||||||||||||||||
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|||||||||||||||||||
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 | ) | |||||||||||||||||||||||
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|||||||||||||||||||
ADJUSTED OPERATING INCOME (LOSS) |
$ | (27 | ) | $ | (1 | ) | $ | (15 | ) | $ | (43 | ) | $ | (183 | ) | $ | (3 | ) | $ | 2 | $ | (4 | ) | $ | (188 | ) | ||||||||||
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|||||||||||||||||||
(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 companys life insurance products reflecting updates to persistency and mortality assumptions. Additional information is included on page 26.
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| |||||||||||||||||||||||||||||||||||
(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 | ) | ||||||||||||||||||
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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 | ) | ||||||||||||
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25
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2024
Adjusted Operating LossLife and Annuities SegmentLife 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 | |||||||||||||||||||||||||||
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|||||||||||||||||||
Total revenues |
321 | 352 | 354 | 1,027 | 339 | 347 | 350 | 358 | 1,394 | |||||||||||||||||||||||||||
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|||||||||||||||||||
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 |