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Exhibit 99.2

 


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

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

     9  

Consolidated Balance Sheets

     10-11  

Consolidated Balance Sheets by Segment

     12-13  

Quarterly Results by Business

  

Adjusted Operating Income and Operating Metrics—Enact Segment

     15-16  

Adjusted Operating Income (Loss) and Statutory Impact of In-Force Rate Actions—Long-Term Care Insurance Segment

     18-19  

Adjusted Operating Income (Loss)—Life and Annuities Segment

     21-24  

Adjusted Operating Loss—Corporate and Other

     26  

Additional Financial Data

  

Investments Summary

     28  

Fixed Maturity Securities Summary

     29  

U.S. GAAP Net Investment Income Yields

     30  

Net Investment Gains (Losses)—Detail

     31  

Reconciliations of Non-GAAP Measures

  

Reconciliation of Operating Return On Equity (ROE)

     33  

Reconciliation of Consolidated Expense Ratio

     34  

Reconciliation of Reported Yield to Core Yield

     35  

Note:

Unless otherwise stated, all references in this financial supplement to income (loss) from continuing operations, income (loss) from continuing operations per share, net income (loss), net income (loss) per share, adjusted operating income (loss), adjusted operating income (loss) per share, book value and book value per share should be read as income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders, income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share, net income (loss) available to Genworth Financial, Inc.’s common stockholders, net income (loss) available to Genworth Financial, Inc.’s common stockholders per share, non-U.S. Generally Accepted Accounting Principles (U.S. GAAP) adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, non-GAAP adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share, book value available to Genworth Financial, Inc.’s common stockholders and book value available to Genworth Financial, Inc.’s common stockholders per share, respectively.

 

2


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

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 https://investor.genworth.com for additional information regarding its first quarter 2025 earnings results.

Beginning with the first quarter of 2025 financial supplement, the company is only providing adjusted operating income and a limited set of key metrics for its Enact segment. Additional information related to the Enact segment is available in the current quarter Quarterly Financial Supplement posted to Enact’s website at the link provided on page 16.

Investors are encouraged to listen to the company’s earnings call on the first quarter 2025 results at 10:00 a.m. (ET) on May 1, 2025. The company’s conference call will be accessible via telephone and internet. The dial-in number for Genworth’s May 1 conference call is 888-208-1820 or 323-794-2110 (outside the U.S.); conference ID #3161071. To participate in the call by webcast, register at least 15 minutes in advance at http://investor.genworth.com.

Regards,

Christine Jewell, Investor Relations

InvestorInfo@genworth.com

 

3


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

Use of Non-GAAP Measures

Management evaluates performance and allocates resources based on a non-GAAP financial measure entitled “adjusted operating income (loss).” Management evaluates adjusted operating income (loss) as a key measure to assess performance and support new business initiatives because the measure more accurately reflects overall operating performance, as it minimizes the impact of macroeconomic volatility. The company’s legacy U.S. life insurance subsidiaries, which comprise the Long-Term Care Insurance and Life and Annuities segments, are managed on a standalone basis; therefore, the company does not allocate capital to its Long-Term Care Insurance and Life and Annuities segments.

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 attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. The company excludes net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating performance.

While some of these items may be significant components of net income (loss) 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), are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Adjusted operating income (loss) is not a substitute for net income (loss) 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) 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) to adjusted operating income for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. This financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 33 to 35 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

FIRST QUARTER 2025

 

Results of Operations and Selected Operating Performance Measures

The company allocates tax to 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. For the three months ended March 31, 2025, September 30, 2024 and June 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. For the three months ended March 31, 2024, the company used the annualized projected effective tax rate for all segments and Corporate and Other.

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 also 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. The company considers the loss ratio, which is the ratio of benefits and other changes in policy reserves to net earned premiums, to be a measure of underwriting performance. The company believes the loss ratio helps to enhance the understanding of the operating performance of the Enact segment.

These operating performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.

 

5


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Financial Highlights

(amounts in millions, except per share data)

 

Balance Sheet Data

   March 31,
  2025  
    December 31,
  2024  
    September 30,
  2024  
    June 30,
  2024  
    March 31,
  2024  
 

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

   $ 10,131     $ 10,136     $ 10,182     $ 10,146     $ 10,100  

Total accumulated other comprehensive income (loss)(1)

     (1,421     (1,642     (1,871     (1,687     (2,094
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

   $ 8,710     $ 8,494     $ 8,311     $ 8,459     $ 8,006  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Book value per share

   $ 20.94     $ 20.16     $ 19.40     $ 19.49     $ 18.21  

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

   $ 24.36     $ 24.05     $ 23.77     $ 23.38     $ 22.98  

Common shares outstanding as of the balance sheet date

     415.9       421.4       428.4       434.0       439.6  
     Twelve months ended  

Twelve Month Rolling Average ROE

   March 31,
2025
    December 31,
2024
    September 30,
2024
    June 30,
2024
    March 31,
2024
 

U.S. GAAP Basis ROE

     2.1     3.0     0.9     0.3     0.9

Operating ROE(2)

     2.4     2.7     0.3     0.2     (0.2 )% 
     Three months ended  

Quarterly Average ROE

   March 31,
2025
    December 31,
2024
    September 30,
2024
    June 30,
2024
    March 31,
2024
 

U.S. GAAP Basis ROE

     2.1         3.3     3.0     5.5

Operating ROE(2)

     2.0     0.6     1.9     4.9     3.4

Basic and Diluted Shares

   Three months ended
March 31, 2025
                         

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

     418.3          

Potentially dilutive securities:

          

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

     4.6          
  

 

 

         

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

     422.9          
  

 

 

         
 
(1) 

As of March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, total accumulated other comprehensive income (loss) includes $704 million, $1,023 million, $(1,341) million, $624 million and $(334) 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 33 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.

 

6


 

 Consolidated Quarterly Results

  

 

 

7


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)

 

     2025      2024  
     1Q      4Q      3Q      2Q     1Q     Total  

REVENUES:

                 

Premiums

   $ 862      $ 876      $ 874      $ 855     $ 875     $ 3,480  

Net investment income

     739        793        777        808       782       3,160  

Net investment gains (losses)

     27        (41      66        (61     49       13  

Policy fees and other income

     158        154        163        167       158       642  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     1,786        1,782        1,880        1,769       1,864       7,295  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                 

Benefits and other changes in policy reserves

     1,217        1,199        1,213        1,151       1,203       4,766  

Liability remeasurement (gains) losses

     4        88        34        39       (8     153  

Changes in fair value of market risk benefits and associated hedges

     18        (3      21        (8     (23     (13

Interest credited

     99        101        102        125       125       453  

Acquisition and operating expenses, net of deferrals

     236        253        259        229       236       977  

Amortization of deferred acquisition costs and intangibles

     60        62        62        60       65       249  

Interest expense

     26        27        28        30       30       115  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     1,660        1,727        1,719        1,626       1,628       6,700  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     126        55        161        143       236       595  

Provision for income taxes

     36        20        40        32       66       158  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS

     90        35        121        111       170       437  

Loss from discontinued operations, net of taxes(1)

     (5      (5      (3      (1     (1     (10
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

NET INCOME

     85        30        118        110       169       427  

Less: net income attributable to noncontrolling interests

     31        31        33        34       30       128  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

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

   $ 54      $ (1    $ 85      $ 76     $ 139     $ 299  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 
                     

Earnings Per Share Data:

               

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

               

Basic

   $ 0.14      $ 0.01      $ 0.20      $ 0.18     $ 0.32     $ 0.71  

Diluted

   $ 0.14      $ 0.01      $ 0.20      $ 0.17     $ 0.31     $ 0.70  

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

               

Basic

   $ 0.13      $ 0.00      $ 0.20      $ 0.17     $ 0.31     $ 0.69  

Diluted

   $ 0.13      $ 0.00      $ 0.19      $ 0.17     $ 0.31     $ 0.68  

Weighted-average common shares outstanding

               

Basic

     418.3        425.3        430.8        436.4       443.0       433.9  

Diluted

     422.9        431.0        435.8        440.7       450.3       439.4  
 
(1) 

Loss from discontinued operations primarily relates to legal costs related to litigation involving the company’s former lifestyle protection insurance business that was sold on December 1, 2015.

 

8


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Reconciliation of Net Income (Loss) to Adjusted Operating Income

(amounts in millions, except per share amounts)

 

     2025      2024  
     1Q      4Q     3Q     2Q     1Q     Total  

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

   $ 54      $ (1   $ 85     $ 76     $ 139     $ 299  

Add: net income attributable to noncontrolling interests

     31        31       33       34       30       128  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

     85        30       118       110       169       427  

Less: loss from discontinued operations, net of taxes

     (5      (5     (3     (1     (1     (10
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS

     90        35       121       111       170       437  

Less: net income from continuing operations attributable to noncontrolling interests

     31        31       33       34       30       128  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     59        4       88       77       140       309  
 

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

               

Net investment (gains) losses, net(1)

     (28      39       (66     60       (50     (17

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

     19        (24     17       (10     (26     (43

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

     —         (2     (2     7       (1     2  

Expenses related to restructuring

     (1      1       —        4       7       12  

Taxes on adjustments

     2        (3     11       (13     15       10  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 51      $ 15     $ 48     $ 125     $ 85     $ 273  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS):

               

Enact segment

   $ 137      $ 137     $ 148     $ 165     $ 135     $ 585  

Long-Term Care Insurance segment

     (30      (104     (46     (29     3       (176

Life and Annuities segment:

               

Life Insurance

     (44      2       (40     (23     (33     (94

Fixed Annuities

     4        1       6       12       11       30  

Variable Annuities

     7        2       7       10       7       26  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Life and Annuities segment

     (33      5       (27     (1     (15     (38
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate and Other

     (23      (23     (27     (10     (38     (98
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 51      $ 15     $ 48     $ 125     $ 85     $ 273  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   

Earnings Per Share Data:

             

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

             

Basic

   $ 0.13      $ 0.00     $ 0.20     $ 0.17     $ 0.31     $ 0.69  

Diluted

   $ 0.13      $ 0.00     $ 0.19     $ 0.17     $ 0.31     $ 0.68  

Adjusted operating income per share

             

Basic

   $ 0.12      $ 0.04     $ 0.11     $ 0.29     $ 0.19     $ 0.63  

Diluted

   $ 0.12      $ 0.04     $ 0.11     $ 0.28     $ 0.19     $ 0.62  

Weighted-average common shares outstanding

             

Basic

     418.3        425.3       430.8       436.4       443.0       433.9  

Diluted

     422.9        431.0       435.8       440.7       450.3       439.4  
 
(1) 

Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests (see page 31 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 21 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.

 

9


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Consolidated Balance Sheets

(amounts in millions)

 

    March 31,
2025
     December 31,
2024
    September 30,
2024
    June 30,
2024
    March 31,
2024
 

ASSETS

            

Investments:

            

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

  $ 45,668      $ 44,902     $ 47,342     $ 45,233     $ 46,065  

Equity securities, at fair value

    496        515       458       435       427  

Commercial mortgage loans

    6,356        6,450       6,570       6,692       6,748  

Less: Allowance for credit losses

    (36      (39     (38     (30     (29
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Commercial mortgage loans, net

    6,320        6,411       6,532       6,662       6,719  

Policy loans

    2,316        2,310       2,316       2,359       2,219  

Limited partnerships

    3,241        3,142       3,100       2,968       2,949  

Other invested assets

    653        648       772       702       683  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total investments

    58,694        57,928       60,520       58,359       59,062  

Cash, cash equivalents and restricted cash

    1,891        2,048       2,057       1,932       1,952  

Accrued investment income

    639        607       592       549       707  

Deferred acquisition costs

    1,729        1,779       1,831       1,884       1,934  

Intangible assets

    193        197       197       197       197  

Reinsurance recoverable

    17,744        17,679       18,626       17,739       18,315  

Less: Allowance for credit losses

    (25      (24     (27     (26     (27
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Reinsurance recoverable, net

    17,719        17,655       18,599       17,713       18,288  

Other assets

    489        444       443       518       516  

Deferred tax asset

    1,663        1,718       1,846       1,784       1,839  

Market risk benefit assets

    47        57       52       54       52  

Separate account assets

    4,192        4,438       4,623       4,553       4,645  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 87,256      $ 86,871     $ 90,760     $ 87,543     $ 89,192  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
                
 
(1) 

Amortized cost of $48,837 million, $48,720 million, $48,961 million, $48,998 million and $49,281 million as of March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively, and allowance for credit losses of $14 million, $10 million, $—, $— and $7 million as of March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

 

10


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Consolidated Balance Sheets

(amounts in millions)

 

    March 31,
2025
     December 31,
2024
    September 30,
2024
    June 30,
2024
    March 31,
2024
 

LIABILITIES AND EQUITY

            

Liabilities:

            

Future policy benefits

  $ 54,158      $ 53,610     $ 57,303     $ 53,774     $ 55,545  

Policyholder account balances

    14,447        14,594       14,864       15,047       15,315  

Market risk benefit liabilities

    516        465       532       500       528  

Liability for policy and contract claims

    698        670       655       649       673  

Unearned premiums

    108        115       121       130       139  

Other liabilities

    1,933        2,026       1,859       1,973       1,889  

Long-term borrowings

    1,519        1,518       1,548       1,564       1,579  

Separate account liabilities

    4,192        4,438       4,623       4,553       4,645  

Liabilities related to discontinued operations(1)

    4        4       —        —        —   
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    77,575        77,440       81,505       78,190       80,313  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

            

Common stock

    1        1       1       1       1  

Additional paid-in capital

    11,862        11,875       11,868       11,880       11,873  

Accumulated other comprehensive income (loss):

            

Change in the discount rate used to measure future policy benefits

    704        1,023       (1,341     624       (334

All other

    (2,125      (2,665     (530     (2,311     (1,760
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total accumulated other comprehensive income (loss)

    (1,421      (1,642     (1,871     (1,687     (2,094

Retained earnings

    1,565        1,511       1,512       1,428       1,352  

Treasury stock, at cost

    (3,297      (3,251     (3,199     (3,163     (3,126
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

    8,710        8,494       8,311       8,459       8,006  

Noncontrolling interests

    971        937       944       894       873  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    9,681        9,431       9,255       9,353       8,879  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

  $ 87,256      $ 86,871     $ 90,760     $ 87,543     $ 89,192  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
                
 
(1) 

Liabilities related to discontinued operations primarily relates to legal costs related to litigation involving the sale of the company’s former lifestyle protection insurance business.

 

11


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Consolidated Balance Sheet by Segment

(amounts in millions)

 

     March 31, 2025  
     Enact     Long-Term
Care Insurance
     Life and
Annuities
    Corporate
and
Other(1)
    Total  

ASSETS

           

Cash and investments

   $ 6,528     $ 35,813      $ 17,615     $ 1,268     $ 61,224  

Deferred acquisition costs and intangible assets

     55       830        1,022       15       1,922  

Reinsurance recoverable, net

     3       7,308        10,408       —        17,719  

Deferred tax and other assets

     145       1,557        282       168       2,152  

Market risk benefit assets

     —        —         47       —        47  

Separate account assets

     —        —         4,192       —        4,192  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 6,731     $ 45,508      $ 33,566     $ 1,451     $ 87,256  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

           

Liabilities:

           

Future policy benefits

   $ —      $ 41,741      $ 12,417     $ —      $ 54,158  

Policyholder account balances

     —        —         14,447       —        14,447  

Market risk benefit liabilities

     —        —         516       —        516  

Liability for policy and contract claims

     543       —         149       6       698  

Unearned premiums

     108       —         —        —        108  

Other liabilities

     207       1,004        282       440       1,933  

Borrowings

     743       —         —        776       1,519  

Separate account liabilities

     —        —         4,192       —        4,192  

Liabilities related to discontinued operations

     —        —         —        4       4  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

     1,601       42,745        32,003       1,226       77,575  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Equity:

           

Allocated equity, excluding accumulated other comprehensive income (loss)

     4,283       2,635        2,466       747       10,131  

Allocated accumulated other comprehensive income (loss)

     (124     128        (903     (522     (1,421
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

     4,159       2,763        1,563       225       8,710  

Noncontrolling interests

     971       —         —        —        971  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total equity

     5,130       2,763        1,563       225       9,681  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 6,731     $ 45,508      $ 33,566     $ 1,451     $ 87,256  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
 
(1) 

Includes inter-segment eliminations and other businesses that are not individually reportable, including a start-up business that offers fee-based services, advice, consulting and other aging care products and services through the company’s CareScout business (“CareScout”) and certain international businesses.

 

12


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Consolidated Balance Sheet by Segment

(amounts in millions)

 

     December 31, 2024  
     Enact     Long-Term
Care Insurance
     Life and
Annuities
    Corporate
and
Other(1)
    Total  

ASSETS

           

Cash and investments

   $ 6,304     $ 35,242      $ 17,537     $ 1,500     $ 60,583  

Deferred acquisition costs and intangible assets

     55       844        1,062       15       1,976  

Reinsurance recoverable, net

     3       7,233        10,419       —        17,655  

Deferred tax and other assets

     163       1,558        284       157       2,162  

Market risk benefit assets

     —        —         57       —        57  

Separate account assets

     —        —         4,438       —        4,438  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 6,525     $ 44,877      $ 33,797     $ 1,672     $ 86,871  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

           

Liabilities:

           

Future policy benefits

   $ —      $ 41,172      $ 12,438     $ —      $ 53,610  

Policyholder account balances

     —        —         14,594       —        14,594  

Market risk benefit liabilities

     —        —         465       —        465  

Liability for policy and contract claims

     525       —         139       6       670  

Unearned premiums

     115       —         —        —        115  

Other liabilities

     137       1,055        274       560       2,026  

Borrowings

     743       —         —        775       1,518  

Liabilities related to discontinued operations

     —        —         4,438       —        4,438  

Separate account liabilities

     —        —         —        4       4  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

     1,520       42,227        32,348       1,345       77,440  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Equity:

           

Allocated equity, excluding accumulated other comprehensive income (loss)

     4,238       2,558        2,469       871       10,136  

Allocated accumulated other comprehensive income (loss)

     (170     92        (1,020     (544     (1,642
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

     4,068       2,650        1,449       327       8,494  

Noncontrolling interests

     937       —         —        —        937  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total equity

     5,005       2,650        1,449       327       9,431  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 6,525     $ 44,877      $ 33,797     $ 1,672     $ 86,871  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
 
(1) 

Includes inter-segment eliminations and other businesses that are not individually reportable, including CareScout and certain international businesses.

 

13


 

 Enact Segment

  

 

 

 

14


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

Adjusted Operating Income—Enact Segment

(amounts in millions)

 

     2025      2024  
     1Q      4Q     3Q     2Q     1Q     Total  

REVENUES:

               

Premiums

   $ 245      $ 246     $ 249     $ 244     $ 241     $ 980  

Net investment income

     63        62       62       59       57       240  

Net investment gains (losses)

     (3      (7     (1     (8     (6     (22

Policy fees and other income

     2        1       —        3       —        4  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     307        302       310       298       292       1,202  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

               

Benefits and other changes in policy reserves

     31        24       12       (17     20       39  

Acquisition and operating expenses, net of deferrals

     50        55       53       65       51       224  

Amortization of deferred acquisition costs and intangibles

     2        3       3       2       2       10  

Interest expense

     12        12       13       13       13       51  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     95        94       81       63       86       324  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     212        208       229       235       206       878  

Provision for income taxes

     46        45       49       51       45       190  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS

     166        163       180       184       161       688  

Less: net income attributable to noncontrolling interests

     31        31       33       34       30       128  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     135        132       147       150       131       560  
 

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

               

Net investment (gains) losses, net(1)

     2        5       1       7       5       18  

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

     —         —        —        9       —        9  

Expenses related to restructuring

     1        1       —        3       —        4  

Taxes on adjustments

     (1      (1     —        (4     (1     (6
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 137      $ 137     $ 148     $ 165     $ 135     $ 585  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   
             
 

(1)  Net investment (gains) losses were adjusted for the portion of net investment gain (losses) attributable to noncontrolling interests as reconciled below:

   

Net investment (gains) losses, gross

   $ 3      $ 7     $ 1     $ 8     $ 6     $ 22  

Adjustmentfor net investment gains (losses) attributable to noncontrolling interests

     (1      (2     —        (1     (1     (4
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment (gains) losses, net

   $ 2      $ 5     $ 1     $ 7     $ 5     $ 18  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(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

FIRST QUARTER 2025

 

Key Metrics—Enact Segment

(dollar amounts in millions)

 

     2025     2024  
     1Q     4Q     3Q     2Q     1Q     Total  
 

Direct Primary New Insurance Written (NIW)

   $ 9,818     $ 13,266     $ 13,591     $ 13,619     $ 10,526     $ 51,002  
 

Direct Primary Insurance In-Force

   $ 268,366     $ 268,825     $ 268,003     $ 266,060     $ 263,645    
 

Direct Primary Risk In-Force

   $ 69,937     $ 69,985     $ 69,611     $ 68,878     $ 67,950    
 

Primary Delinquencies

     22,349       23,566       21,027       19,051       19,492       23,566  
 

New Delinquencies

     12,237       13,717       12,964       10,461       11,395       48,537  
 

Paid Claims

     (179     (191     (220     (160     (172     (743
 

Primary Cures(1)

     (13,275     (10,987     (10,768     (10,742     (12,163     (44,660
 

Loss Ratio(2)

     12     10     5     (7 )%      8     4
 

Available Assets Above PMIERs Requirements(3)

   $ 1,966     $ 2,052     $ 2,190     $ 2,057     $ 1,883    
 

PMIERs Sufficiency Ratio(3)

     165     167     173     169     163  
 

Reserves:

              

Direct primary case(4)

   $ 489     $ 472     $ 461     $ 462     $ 486    

All other(4)

     54       53       49       46       46    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total Reserves

   $ 543     $ 525     $ 510     $ 508     $ 532    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
                  
 
(1) 

Includes rescissions and claim denials.

(2) 

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

(3) 

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.

(4) 

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.

For additional information related to the Enact segment, refer to the current quarter Quarterly Financial Supplement posted to the Enact Holdings, Inc. investor page:

https://ir.enactmi.com/financials-and-filings/quarterly-results

 

16


 

Long-Term Care Insurance Segment

  

 

 

 

17


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

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

(amounts in millions)

 

         2025      2024  
         1Q      4Q     3Q     2Q     1Q     Total  

REVENUES:

                 

Premiums

     $ 571      $ 587     $ 581     $ 564     $ 578     $ 2,310  

Net investment income

       451        499       483       494       464       1,940  

Net investment gains (losses)

       29        (21     71       (47     63       66  
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

       1,051        1,065       1,135       1,011       1,105       4,316  
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

                 

Benefits and other changes in policy reserves

       944        955       949       934       936       3,774  

Liability remeasurement (gains) losses

       (18      117       28       43       (16     172  

Acquisition and operating expenses, net of deferrals

       109        121       118       82       102       423  

Amortization of deferred acquisition costs and intangibles

       17        17       17       18       17       69  
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

       1,052        1,210       1,112       1,077       1,039       4,438  
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

       (1      (145     23       (66     66       (122

Provision (benefit) for income taxes

       6        (24     13       —        14       3  
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

       (7      (121     10       (66     52       (125
 

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

                 

Net investment (gains) losses

       (29      21       (71     47       (63     (66

Expenses related to restructuring

       —         —        —        —        1       1  

Taxes on adjustments

       6        (4     15       (10     13       14  
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

     $ (30    $ (104   $ (46   $ (29   $ 3     $ (176
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liability remeasurement (gains) losses(1):

                 

Cash flow assumption updates

     $ (1    $ 20     $ (63   $ (24   $ (2   $ (69

Actual variances from expected experience

       (17      97       91       67       (14     241  
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     $ (18    $ 117     $ 28     $ 43     $ (16   $ 172  
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

       (0.04 )%       0.28     0.07     0.10     (0.04 )%      0.41
                     
 
(1) 

In the fourth quarter of 2024, the liability remeasurement loss of $117 million in the company’s long-term care insurance business included an unfavorable impact from annual cash flow assumption updates of $20 million, reflecting net unfavorable updates to healthy life assumptions to better align with near-term experience, as well as an unfavorable impact related to higher assumed benefit utilization related to cost of care inflation. These unfavorable impacts were partially offset by favorable assumption updates for future in-force rate action approvals based on recent experience and short-term incidence assumptions for incurred but not reported claims. Also included in the liability remeasurement loss of $117 million were unfavorable actual variances from expected experience of $97 million associated with lower terminations and higher claims.

(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.

 

18


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

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

(amounts in millions)

 

     2025      2024  
     1Q      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)

   $ 240      $ 245     $ 232     $ 220     $ 217     $ 914  

Reserve changes(2)

     97        97       90       102       114       403  
 

Settlement impacts - reserve changes

     5        19       133       222       240       614  

Settlement impacts - litigation expenses and settlement payments

     (2      (6     (45     (99     (109     (259
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Settlement impacts, net

     3        13       88       123       131       355  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Statutory earnings from in-force rate actions

   $ 340      $ 355     $ 410     $ 445     $ 462     $ 1,672  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   
 
(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.

 

19


 

Life and Annuities Segment

  

 

20


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

Adjusted Operating Income (Loss)—Life and Annuities Segment

(amounts in millions)

 

     2025      2024  
     1Q      4Q     3Q     2Q     1Q     Total  

REVENUES:

               

Premiums

   $ 44      $ 40     $ 42     $ 44     $ 53     $ 179  

Net investment income

     220        227       228       250       254       959  

Net investment gains (losses)

     1        (8     (4     (4     (4     (20

Policy fees and other income

     156        153       163       164       158       638  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     421        412       429       454       461       1,756  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

               

Benefits and other changes in policy reserves

     244        222       253       237       250       962  

Liability remeasurement (gains) losses

     22        (29     6       (4     8       (19

Changes in fair value of market risk benefits and associated hedges

     18        (3     21       (8     (23     (13

Interest credited

     99        101       102       125       125       453  

Acquisition and operating expenses, net of deferrals

     58        58       63       60       54       235  

Amortization of deferred acquisition costs and intangibles

     40        41       41       39       45       166  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     481        390       486       449       459       1,784  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (60      22       (57     5       2       (28

Provision (benefit) for income taxes

     (13      4       (13     1       —        (8
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     (47      18       (44     4       2       (20
 

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

               

Net investment (gains) losses

     (1      8       4       4       4       20  

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

               

and associated hedges(1)

     19        (24     17       (10     (26     (43

Taxes on adjustments

     (4      3       (4     1       5       5  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

   $ (33    $ 5     $ (27   $ (1   $ (15   $ (38
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   

Liability remeasurement (gains) losses(2):

             

Cash flow assumption updates

   $  —       $ 27     $  —      $  —      $  —      $ 27  

Actual variances from expected experience

     22        (56     6       (4     8       (46
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 22      $ (29   $ 6     $ (4   $ 8     $ (19
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

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

 

   

Changes in fair value of market risk benefits and associated hedges

   $ 18      $ (3   $ 21     $ (8   $ (23   $ (13

Adjustment for changes in reserves, attributed fees and benefit payments

     1        (21     (4     (2     (3     (30
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 19      $ (24   $ 17     $ (10   $ (26   $ (43
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(2) 

In the fourth quarter of 2024, the liability remeasurement gain of $29 million was primarily related to the company’s life insurance products, reflecting net favorable model and cash flow assumption updates of $30 million, partially offset by an unfavorable update to mortality assumptions for universal life insurance contracts originating from term life insurance conversions and unfavorable interest rate assumption updates.

 

21


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

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

(amounts in millions)

 

     2025      2024  
     1Q      4Q     3Q     2Q     1Q     Total  

REVENUES:

               

Premiums

   $ 44      $ 40     $ 42     $ 44     $ 53     $ 179  

Net investment income

     144        147       146       167       167       627  

Net investment gains (losses)

     —         (3     (2     5       5       5  

Policy fees and other income

     129        125       135       136       129       525  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     317        309       321       352       354       1,336  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

               

Benefits and other changes in policy reserves

     201        187       213       200       208       808  

Liability remeasurement (gains) losses

     25        (28     5       —        11       (12

Interest credited

     77        78       78       101       99       356  

Acquisition and operating expenses, net of deferrals

     36        38       41       43       35       157  

Amortization of deferred acquisition costs and intangibles

     34        35       36       33       38       142  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     373        310       373       377       391       1,451  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (56      (1     (52     (25     (37     (115

Benefit for income taxes

     (12      (1     (11     (5     (8     (25
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LOSS FROM CONTINUING OPERATIONS

     (44      —        (41     (20     (29     (90
 

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:

               

Net investment (gains) losses

     —         3       2       (5     (5     (5

Taxes on adjustments

     —         (1     (1     2       1       1  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME (LOSS)

   $ (44    $ 2     $ (40   $ (23   $ (33   $ (94
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   

 

22


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Adjusted Operating Income—Life and Annuities Segment—Fixed Annuities

(amounts in millions)

 

     2025      2024  
     1Q      4Q     3Q     2Q     1Q     Total  

REVENUES:

               

Net investment income

   $ 70      $ 73     $ 76     $ 77     $ 80     $ 306  

Net investment gains (losses)

     1        (5     (2     (9     (9     (25

Policy fees and other income

     2        2       1       2       2       7  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     73        70       75       70       73       288  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

               

Benefits and other changes in policy reserves

     34        30       34       33       36       133  

Liability remeasurement (gains) losses

     (3      (1     1       (4     (3     (7

Changes in fair value of market risk benefits and associated hedges

     9        (4     8       (4     (7     (7

Interest credited

     21        22       23       23       25       93  

Acquisition and operating expenses, net of deferrals

     12        10       12       9       8       39  

Amortization of deferred acquisition costs and intangibles

     2        2       2       2       3       9  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     75        59       80       59       62       260  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (2      11       (5     11       11       28  

Provision (benefit) for income taxes

     —         2       (1     3       2       6  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     (2      9       (4     8       9       22  
 

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

               

Net investment (gains) losses

     (1      5       2       9       9       25  

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

     9        (15     9       (3     (7     (16

Taxes on adjustments

     (2      2       (1     (2     —        (1
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 4      $ 1     $ 6     $ 12     $ 11     $ 30  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   
 

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

   

Changes in fair value of market risk benefits and associated hedges

   $ 9      $ (4)     $ 8     $ (4   $ (7   $ (7)  

Adjustment for changes in reserves, attributed fees and benefit payments

     —         (11     1       1       —        (9
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 9      $ (15   $ 9     $ (3   $ (7   $ (16
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

23


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Adjusted Operating Income—Life and Annuities Segment—Variable Annuities

(amounts in millions)

 

     2025      2024  
     1Q      4Q     3Q     2Q     1Q     Total  

REVENUES:

               

Net investment income

   $ 6      $ 7     $ 6     $ 6     $ 7     $ 26  

Policy fees and other income

     25        26       27       26       27       106  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     31        33       33       32       34       132  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

               

Benefits and other changes in policy reserves

     9        5       6       4       6       21  

Changes in fair value of market risk benefits and associated hedges

     9        1       13       (4     (16     (6

Interest credited

     1        1       1       1       1       4  

Acquisition and operating expenses, net of deferrals

     10        10       10       8       11       39  

Amortization of deferred acquisition costs and intangibles

     4        4       3       4       4       15  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     33        21       33       13       6       73  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (2      12       —        19       28       59  

Provision (benefit) for income taxes

     (1      3       (1     3       6       11  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     (1      9       1       16       22       48  
 

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:

               

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

     10        (9     8       (7     (19     (27

Taxes on adjustments

     (2      2       (2     1       4       5  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING INCOME

   $ 7      $ 2     $ 7     $  10     $ 7     $ 26  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   
 

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

   

Changes in fair value of market risk benefits and associated hedges

   $ 9      $ 1     $ 13     $ (4   $ (16)     $ (6)  

Adjustment for changes in reserves, attributed fees and benefit payments

     1        (10     (5     (3     (3     (21
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 10      $ (9   $ 8     $ (7   $ (19   $ (27
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

24


 

 

Corporate and Other

  

 

25


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

Adjusted Operating Loss—Corporate and Other(1)

(amounts in millions)

 

     2025      2024  
     1Q      4Q     3Q     2Q     1Q     Total  

REVENUES:

               

Premiums

   $ 2      $ 3     $ 2     $ 3     $ 3     $ 11  

Net investment income

     5        5       4       5       7       21  

Net investment gains (losses)

     —         (5     —        (2     (4     (11
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     7        3       6       6       6       21  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BENEFITS AND EXPENSES:

               

Benefits and other changes in policy reserves

     (2      (2     (1     (3     (3     (9

Acquisition and operating expenses, net of deferrals

     19        19       25       22       29       95  

Amortization of deferred acquisition costs and intangibles

     1        1       1       1       1       4  

Interest expense

     14        15       15       17       17       64  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     32        33       40       37       44       154  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (25      (30     (34     (31     (38     (133

Provision (benefit) for income taxes

     (3      (5     (9     (20     7       (27
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LOSS FROM CONTINUING OPERATIONS

     (22      (25     (25     (11     (45     (106
 

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:

               

Net investment (gains) losses

     —         5       —        2       4       11  

(Gains) losses on early extinguishment of debt

     —         (2     (2     (2     (1     (7

Expenses related to restructuring

     (2      —        —        1       6       7  

Taxes on adjustments

     1        (1     —        —        (2     (3
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED OPERATING LOSS

   $ (23    $ (23)     $ (27   $ (10)     $ (38)     $ (98)  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   
 
(1) 

Includes inter-segment eliminations and other businesses that are not individually reportable, including CareScout and certain international businesses.

 

26


 

Additional Financial Data

 

27


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

Investments Summary

(amounts in millions)

 

    March 31, 2025      December 31, 2024     September 30, 2024     June 30, 2024     March 31, 2024  
    Carrying
Amount
     % of
Total
     Carrying
Amount
     % of
Total
    Carrying
Amount
     % of
Total
    Carrying
Amount
     % of
Total
    Carrying
Amount
     % of
Total
 

Composition of Investment Portfolio

                                                                 

Fixed maturity securities:

                           

Investment grade:

                           

Public fixed maturity securities

  $ 26,470        43    $ 26,159        44   $ 27,750        45   $ 26,250        43   $ 26,667        43

Private fixed maturity securities

    11,166        18        10,882        18       11,369        18       10,933        18       11,021        18  

Residential mortgage-backed securities(1)

    911        2        811        1       860        1       851        1       876        1  

Commercial mortgage-backed securities

    1,309        2        1,293        2       1,360        2       1,312        2       1,315        2  

Other asset-backed securities

    2,134        4        2,120        4       2,137        3       2,207        4       2,264        4  

State and political subdivisions

    2,169        4        2,149        4       2,266        4       2,168        4       2,266        4  

Non-investment grade fixed maturity securities

    1,509        2        1,488        2       1,600        3       1,512        3       1,656        3  

Equity securities:

                           

Common stocks and mutual funds

    415        1        429        1       422        1       400        1       377        1  

Preferred stocks

    81        —         86        —        36        —        35        —        50        —   

Commercial mortgage loans, net

    6,320        11        6,411        11       6,532        10       6,662        11       6,719        11  

Policy loans

    2,316        4        2,310        4       2,316        4       2,359        4       2,219        4  

Limited partnerships

    3,241        5        3,142        5       3,100        5       2,968        5       2,949        5  

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

    1,895        3        2,052        3       2,059        3       1,944        3       1,962        3  

Other invested assets:

   Derivatives:                            
  

Interest rate swaps

    23        —         18        —        60        —        26        —        35        —   
  

Foreign currency swaps

    12        —         13        —        9        —        12        —        11        —   
  

Equity index options

    12        —         19        —        21        —        21        —        20        —   
  

Forward bond purchase commitments

    19        —         6        —        60        —        21        —        41        —   
  

Foreign currency forward contracts

    1        —         —         —        —         —        —         —        —         —   
  

Other

    582        1        588        1       620        1       610        1       566        1  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total invested assets and cash

  $ 60,585        100    $ 59,976        100   $ 62,577        100   $ 60,291        100   $ 61,014        100
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Public Fixed Maturity Securities—Credit Quality:

                                                                 

NRSRO(2) Designation

                           
   

       AAA

  $ 2,467        8    $ 2,414        8   $ 2,558        8   $ 2,456        8   $ 2,472        8

        AA

    6,158        20        5,988        20       6,311        19       6,017        20       6,113        19  

        A

    8,809        28        8,537        28       9,132        28       8,671        28       8,945        28  

       BBB

    13,165        42        13,208        42       13,948        43       13,184        42       13,336        43  

        BB

    477        2        476        2       562        2       496        2       519        2  

        B

    27        —         27        —        28        —        27        —        27        —   

      CCC and lower

    —         —         —         —        —         —        —         —        —         —   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total public fixed maturity securities

  $ 31,103        100    $ 30,650        100   $ 32,539        100   $ 30,851        100   $ 31,412        100
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Private Fixed Maturity Securities—Credit Quality:

                                                                 

NRSRO(2) Designation

                           
   

       AAA

  $ 766        5    $ 777        5   $ 828        6   $ 811        6   $ 851        6

        AA

    1,506        10        1,527        11       1,555        11       1,510        10       1,570        11  

        A

    4,136        28        4,015        28       4,165        28       4,050        28       4,078        28  

       BBB

    7,152        50        6,948        49       7,245        48       7,022        50       7,044        47  

        BB

    889        6        850        6       883        6       891        6       991        7  

        B

    73        1        81        1       98        1       70        —        104        1  

     CCC and lower

    28        —         39        —        14        —        13        —        —         —   

      Not rated

    15        —         15        —        15        —        15        —        15        —   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total private fixed maturity securities

  $ 14,565        100    $ 14,252        100   $ 14,803        100   $ 14,382        100   $ 14,653        100
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
                                        

 

 
(1) 

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

(2) 

Nationally Recognized Statistical Rating Organizations.

 

28


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Fixed Maturity Securities Summary

(amounts in millions)

 

     March 31, 2025      December 31, 2024     September 30, 2024     June 30, 2024     March 31, 2024  
     Fair
Value
     % of
Total
     Fair
Value
     % of
Total
    Fair
Value
     % of
Total
    Fair
Value
     % of
Total
    Fair
Value
     % of
Total
 

Fixed Maturity Securities - Security Sector:

                            
   

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

   $ 3,594        8    $ 3,493        8   $ 3,717        8   $ 3,512        8   $ 3,460        8

State and political subdivisions

     2,169        5        2,149        5       2,266        5       2,168        5       2,266        5  

Foreign government

     1,029        2        909        2       863        2       709        2       613        1  

U.S. corporate

     27,229        59        26,771        59       28,313        60       26,813        58       27,437        59  

Foreign corporate

     7,260        16        7,327        16       7,804        16       7,636        17       7,802        17  

Residential mortgage-backed securities

     911        2        811        2       859        2       851        2       876        2  

Commercial mortgage-backed securities

     1,318        3        1,301        3       1,360        3       1,312        3       1,321        3  

Other asset-backed securities

     2,158        5        2,141        5       2,160        4       2,232        5       2,290        5  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total fixed maturity securities

   $ 45,668        100    $ 44,902        100   $ 47,342        100   $ 45,233        100   $ 46,065        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Corporate Bond Holdings - Industry Sector:

                            
   

Investment Grade:

                            

Finance and insurance

   $ 8,532        25    $ 8,546        26   $ 9,089        25   $ 8,695        26   $ 8,876        25

Utilities

     4,991        15        4,899        14       5,189        14       4,887        14       4,902        14  

Energy

     3,253        9        3,167        9       3,436        10       3,186        9       3,153        9  

Consumer - non-cyclical

     4,884        15        4,822        14       5,100        14       4,823        14       4,981        15  

Consumer - cyclical

     1,474        4        1,471        4       1,556        4       1,542        4       1,588        5  

Capital goods

     2,791        8        2,699        8       2,755        8       2,606        8       2,559        7  

Industrial

     1,679        5        1,689        5       1,802        5       1,740        5       1,832        5  

Technology and communications

     3,365        9        3,268        10       3,454        10       3,381        10       3,491        10  

Transportation

     1,502        4        1,485        4       1,538        4       1,461        4       1,466        4  

Other

     700        2        744        2       780        2       770        2       870        2  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Subtotal

     33,171        96        32,790        96       34,699        96       33,091        96       33,718        96  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Non-Investment Grade:

                            

Finance and insurance

     140        1        139        —        185        1       185        1       204        1  

Utilities

     73        —         76        1       80        —        55        —        52        —   

Energy

     163        1        151        1       167        1       183        1       197        1  

Consumer - non-cyclical

     123        —         121        —        134        —        128        —        139        —   

Consumer - cyclical

     258        1        256        1       270        1       242        1       260        1  

Capital goods

     133        —         135        —        138        —        134        —        134        —   

Industrial

     166        —         149        1       160        —        157        —        170        —   

Technology and communications

     181        1        181        —        182        1       175        1       213        1  

Transportation

     25        —         25        —        24        —        23        —        27        —   

Other

     56        —         75        —        78        —        76        —        125        —   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Subtotal

     1,318        4        1,308        4       1,418        4       1,358        4       1,521        4  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 34,489        100    $ 34,098        100   $ 36,117        100   $ 34,449        100   $ 35,239        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Fixed Maturity Securities - Contractual Maturity Dates:

                            
   

Due in one year or less

   $ 1,413        3    $ 1,419        3   $ 1,311        3   $ 1,254        3   $ 1,298        3

Due after one year through five years

     8,474        19        7,895        18       8,238        17       8,022        18       8,112        18  

Due after five years through ten years

     11,132        24        11,431        25       11,895        26       11,427        25       11,851        26  

Due after ten years

     20,262        44        19,904        44       21,519        45       20,135        44       20,317        43  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Subtotal

     41,281        90        40,649        90       42,963        91       40,838        90       41,578        90  

Mortgage and asset-backed securities

     4,387        10        4,253        10       4,379        9       4,395        10       4,487        10  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total fixed maturity securities

   $ 45,668        100    $ 44,902        100   $ 47,342        100   $ 45,233        100   $ 46,065        100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
                                      

 

29


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

U.S. GAAP Net Investment Income Yields

(amounts in millions)

 

     2025      2024  
     1Q      4Q     3Q     2Q     1Q     Total  

U.S. GAAP Net Investment Income

               

Fixed maturity securities - taxable

   $ 559      $ 556     $ 557     $ 571     $ 554     $ 2,238  

Fixed maturity securities - non-taxable

     —         1       —        —        1       2  

Equity securities

     3        5       3       3       2       13  

Commercial mortgage loans

     73        73       74       75       75       297  

Policy loans

     36        37       38       56       58       189  

Limited partnerships

     8        60       36       36       20       152  

Other invested assets

     61        65       70       67       68       270  

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

     22        23       24       25       27       99  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment income before expenses and fees

     762        820       802       833       805       3,260  

Expenses and fees

     (23      (27     (25     (25     (23     (100
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

   $ 739      $ 793     $ 777     $ 808     $ 782     $ 3,160  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Annualized Yields

               

Fixed maturity securities - taxable

     4.6      4.6     4.6     4.7     4.5     4.6

Fixed maturity securities - non-taxable

     —       11.8     —      —      10.8     5.7

Equity securities

     2.4      4.1     2.7     2.8     1.9     2.9

Commercial mortgage loans

     4.6      4.5     4.5     4.5     4.4     4.5

Policy loans

     6.2      6.4     6.5     9.8     10.5     8.3

Limited partnerships(1)

     1.0      7.7     4.7     4.9     2.8     5.1

Other invested assets(2)

     41.7      43.0     45.5     45.6     47.7     45.7

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

     4.5      4.5     4.8     5.1     5.1     4.8
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment income before expenses and fees

     4.8      5.1     5.0     5.2     5.0     5.1

Expenses and fees

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

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     4.6      5.0     4.9     5.0     4.9     4.9
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   

Yields are based on net investment income as reported under U.S. GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments. See page 35 herein for average invested assets and cash used in the yield calculation.

 
(1) 

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

(2) 

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

 

30


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Net Investment Gains (Losses)—Detail

(amounts in millions)

 

     2025      2024  
     1Q      4Q     3Q     2Q     1Q     Total  

Realized investment gains (losses):

               

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

               

Fixed maturity securities:

               

U.S. corporate

   $  —       $ (8   $ (1   $ (9   $ (17   $ (35

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

     —         —        —        3       1       4  

Foreign corporate

     (2      3       (6     (7     (3     (13

Foreign government

     (2      (3     2       1       —        —   

Mortgage-backed securities

     —         (1     (2     (7     (3     (13

Asset-backed securities

     —         —        —        —        —        —   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     (4      (9     (7     (19     (22     (57

Net realized gains (losses) on equity securities sold

     1        9       —        —        —        9  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized investment gains (losses)

     (3      —        (7     (19     (22     (48
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net change in allowance for credit losses on available-for-sale fixed maturity securities

     (4      (10     —        7       —        (3

Write-down of available-for-sale fixed maturity securities

     —         (9     —        —        —        (9

Net unrealized gains (losses) on equity securities still held

     (14      17       22       12       32       83  

Net unrealized gains (losses) on limited partnerships

     38        (3     55       (52     43       43  

Commercial mortgage loans

     3        (5     (8     (1     (2     (16

Derivative instruments

     6        (21     10       (8     1       (18

Other

     1        (10     (6     —        (3     (19
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gains (losses), gross

     27        (41     66       (61     49       13  

Adjustment for net investment (gains) losses attributable to noncontrolling interests

     1        2       —        1       1       4  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gains (losses), net

   $ 28      $ (39   $ 66     $ (60   $ 50     $ 17  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   

 

31


 

Reconciliations of Non-GAAP Measures

  

 

 

 

32


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

Reconciliation of Operating ROE

(amounts in millions)

 

Twelve Month Rolling Average ROE

  Twelve months ended  
U.S. GAAP Basis ROE   March 31,
2025
    December 31,
2024
    September 30,
2024
    June 30,
2024
    March 31,
2024
 

Net income available to Genworth Financial, Inc.’s common stockholders for the twelve months ended(1)

  $ 214     $ 299     $ 88     $ 32     $ 93  

Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)(2)

  $ 10,139     $ 10,120     $ 10,148     $ 10,176     $ 10,205  

U.S. GAAP Basis ROE(1)/(2)

    2.1     3.0     0.9     0.3     0.9

Operating ROE

         

Adjusted operating income (loss) for the twelve months ended(1)

  $ 239     $ 273     $ 28     $ 22     $ (18

Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)(2)

  $ 10,139     $ 10,120     $ 10,148     $ 10,176     $ 10,205  

Operating ROE(1)/(2)

    2.4     2.7     0.3     0.2     (0.2 )% 

 

Quarterly Average ROE

  Three months ended  
U.S. GAAP Basis ROE   March 31,
2025
    December 31,
2024
    September 30,
2024
    June 30,
2024
    March 31,
2024
 

Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended(3)

  $ 54     $ (1   $ 85     $ 76     $ 139  

Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)(4)

  $ 10,134     $ 10,159     $ 10,164     $ 10,123     $ 10,068  

Annualized U.S. GAAP Quarterly Basis ROE(3)/(4)

    2.1         3.3     3.0     5.5

Operating ROE

         

Adjusted operating income for the period ended(3)

  $ 51     $ 15     $ 48     $ 125     $ 85  

Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)(4)

  $ 10,134     $ 10,159     $ 10,164     $ 10,123     $ 10,068  

Annualized Operating Quarterly Basis ROE(3)/(4)

    2.0     0.6     1.9     4.9     3.4

Non-GAAP Definition for Operating ROE

The company references the non-GAAP financial measure entitled “operating return on equity” or “operating ROE.” The company defines operating ROE as adjusted operating income (loss) divided by average ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss). Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders divided by average ending Genworth Financial, Inc.’s stockholders’ equity determined in accordance with U.S. GAAP.

 
(1) 

The twelve months ended information is derived by adding the four quarters of net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) from page 9 herein.

(2) 

Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss), is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss), for the most recent five quarters.

(3) 

Net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income from page 9 herein.

(4) 

Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss), is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss), over two consecutive quarters.

 

33


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Reconciliation of Consolidated Expense Ratio

(amounts in millions)

 

          2025      2024  
     GAAP Basis Expense Ratio    1Q      4Q     3Q     2Q     1Q     Total  

(A)

   Acquisition and operating expenses, net of deferrals    $ 236      $ 253     $ 259     $ 229     $ 236     $ 977  

(B)

   Premiums    $ 862      $ 876     $ 874     $ 855     $ 875     $ 3,480  
 

(A) / (B)

   GAAP Basis Expense Ratio      27      29     30     27     27     28
 
   Adjusted Expense Ratio                
   Acquisition and operating expenses, net of deferrals    $ 236      $ 253     $ 259     $ 229     $ 236     $ 977  
   Less: Legal settlement (recoveries) expenses(1)      —         —        —        (24     (4     (28
   Less: (Gains) losses on early extinguishment of debt(2)      —         (2     (2     9       (1     4  
     

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(C)

   Adjusted acquisition and operating expenses, net of deferrals    $ 236      $ 255     $ 261     $ 244     $ 241     $ 1,001  
     

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   Premiums    $ 862      $ 876     $ 874     $ 855     $ 875     $  3,480  
   Add: Policy fees and other income      158        154       163       167       158       642  
     

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(D)

   Adjusted revenues    $ 1,020      $ 1,030     $ 1,037     $ 1,022     $ 1,033     $ 4,122  
     

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(C) / (D)

   Adjusted expense ratio      23      25     25     24     23     24
                                             

Non-GAAP Definition for Adjusted Expense Ratio

The company references the non-GAAP financial measure entitled “adjusted expense ratio” as a measure of its operating performance. The company defines adjusted expense ratio as acquisition and operating expenses, net of deferrals, less certain reinsurance expenses, less legal settlement (recoveries) expenses incurred in the company’s long-term care insurance business, less (gains) losses on early extinguishment of debt divided by the sum of premiums, policy fees and other income. Management believes that the expense ratio analysis enhances understanding of the operating performance of the company. However, the adjusted expense ratio as defined by the company should not be viewed as a substitute for the GAAP basis expense ratio.

 
(1) 

Estimated pre-tax class action attorney fees incurred in connection with legal settlements in the company’s long-term care insurance business. These amounts are accrued in the period the court settlement occurs. Amounts in the second and first quarters of 2024 represent net insurance recoveries on legal costs incurred in connection with these legal settlements.

(2) 

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

 

34


GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

 

Reconciliation of Reported Yield to Core Yield

 

          2025      2024  
     (Assets - amounts in billions)    1Q      4Q     3Q     2Q     1Q     Total  
   Reported - Total Invested Assets and Cash    $ 60.6      $ 60.0     $ 62.6     $ 60.3     $ 61.0     $ 60.0  
   Subtract:                
  

Unrealized gains (losses)

     (3.1      (3.8     (1.5     (3.7     (3.1     (3.8
     

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   Adjusted end of period invested assets and cash    $ 63.7      $ 63.8     $ 64.1     $ 64.0     $ 64.1     $ 63.8  
     

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(A)

   Average Invested Assets and Cash Used in Reported and Core Yield Calculation    $ 63.7      $ 63.9     $ 64.0     $ 64.0     $ 64.3     $ 64.1  
 
   (Income - amounts in millions)                
 

(B)

   Reported - Net Investment Income    $ 739      $ 793     $ 777     $ 808     $ 782     $  3,160  
   Subtract:                
  

Bond calls and commercial mortgage loan prepayments

     2        —        1       1       1       3  
  

Other non-core items(1)

     2        5       4       4       2       15  
     

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(C)

   Core Net Investment Income    $ 735      $ 788     $ 772     $ 803     $ 779     $ 3,142  
     

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(B) / (A)

   Reported Yield      4.64      4.97     4.86     5.04     4.87     4.93

(C) / (A)

   Core Yield      4.62      4.93     4.82     5.02     4.85     4.91
                                             

Note: Yields have been annualized.

Non-GAAP Definition for Core Yield

The company references the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP.

 
(1) 

Includes cost basis adjustments on structured securities and various other immaterial items.

 

35