Exhibit 99.2
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2025
Table of Contents |
Page | |||
3 | ||||
4 | ||||
Results of Operations and Selected Operating Performance Measures |
5 | |||
6 | ||||
Consolidated Quarterly Results |
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8 | ||||
Reconciliation of Net Income (Loss) to Adjusted Operating Income |
9 | |||
10-11 | ||||
12-13 | ||||
Quarterly Results by Business |
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Adjusted Operating Income and Operating MetricsEnact Segment |
15-16 | |||
18-19 | ||||
21-24 | ||||
26 | ||||
Additional Financial Data |
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28 | ||||
29 | ||||
30 | ||||
31 | ||||
Reconciliations of Non-GAAP Measures |
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33 | ||||
34 | ||||
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
Thank you for your continued interest in Genworth Financial, Inc.
Please see the accompanying press release and summary presentation posted to the companys website at 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 Enacts website at the link provided on page 16.
Investors are encouraged to listen to the companys earnings call on the first quarter 2025 results at 10:00 a.m. (ET) on May 1, 2025. The companys conference call will be accessible via telephone and internet. The dial-in number for Genworths 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
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 companys 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 companys net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the companys discretion and are influenced by market opportunities, as well as asset-liability matching considerations. The company excludes net investment gains (losses), changes in fair value of market risk benefits 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 companys 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 companys 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 segments provision for income taxes are estimates which are subject to review and could change from year to year. U.S. GAAP generally requires an annualized effective tax rate to be used for interim reporting periods, utilizing projections of full year results. However, in certain circumstances, it is appropriate to record the actual effective tax rate for the period if a reliable estimate cannot be made for the full year. 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 companys Enact segment as a measure of volume of new business generated in a period. The company considers new insurance written to be a measure of the operating performance of its Enact segment because it represents a measure of new sales of mortgage insurance policies during a specified period, rather than a measure of revenues or profitability during that period.
Management also regularly monitors and reports insurance in-force and risk in-force for the companys Enact segment. Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans insured by the companys U.S. mortgage insurance subsidiaries. Risk in-force is based on the coverage percentage applied to the estimated current outstanding loan balance. These metrics are presented on a direct basis and exclude reinsurance. The company considers insurance in-force and risk in-force to be measures of the operating performance of its Enact segment because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.
Management also regularly monitors and reports a loss ratio for the companys Enact segment. 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
(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 |
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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 | ) | ||||||||||
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Total Genworth Financial, Inc.s stockholders equity |
$ | 8,710 | $ | 8,494 | $ | 8,311 | $ | 8,459 | $ | 8,006 | ||||||||||
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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 |
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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 |
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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 |
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Weighted-average common shares used in basic earnings per share calculations |
418.3 | |||||||||||||||||||
Potentially dilutive securities: |
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Performance stock units, restricted stock units and other equity-based awards |
4.6 | |||||||||||||||||||
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Weighted-average common shares used in diluted earnings per share calculations |
422.9 | |||||||||||||||||||
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(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: |
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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 | ||||||||||||||||||
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Total revenues |
1,786 | 1,782 | 1,880 | 1,769 | 1,864 | 7,295 | ||||||||||||||||||
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BENEFITS AND EXPENSES: |
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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 | ||||||||||||||||||
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Total benefits and expenses |
1,660 | 1,727 | 1,719 | 1,626 | 1,628 | 6,700 | ||||||||||||||||||
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INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
126 | 55 | 161 | 143 | 236 | 595 | ||||||||||||||||||
Provision for income taxes |
36 | 20 | 40 | 32 | 66 | 158 | ||||||||||||||||||
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INCOME FROM CONTINUING OPERATIONS |
90 | 35 | 121 | 111 | 170 | 437 | ||||||||||||||||||
Loss from discontinued operations, net of taxes(1) |
(5 | ) | (5 | ) | (3 | ) | (1 | ) | (1 | ) | (10 | ) | ||||||||||||
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NET INCOME |
85 | 30 | 118 | 110 | 169 | 427 | ||||||||||||||||||
Less: net income attributable to noncontrolling interests |
31 | 31 | 33 | 34 | 30 | 128 | ||||||||||||||||||
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NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
$ | 54 | $ | (1 | ) | $ | 85 | $ | 76 | $ | 139 | $ | 299 | |||||||||||
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Earnings Per Share Data: |
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Income from continuing operations available to Genworth Financial, Inc.s common stockholders per share |
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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 |
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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 |
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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 companys 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 | ||||||||||||||||||
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NET INCOME |
85 | 30 | 118 | 110 | 169 | 427 | ||||||||||||||||||
Less: loss from discontinued operations, net of taxes |
(5 | ) | (5 | ) | (3 | ) | (1 | ) | (1 | ) | (10 | ) | ||||||||||||
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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 | ||||||||||||||||||
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INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH |
59 | 4 | 88 | 77 | 140 | 309 | ||||||||||||||||||
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO |
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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 | ||||||||||||||||
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ADJUSTED OPERATING INCOME |
$ | 51 | $ | 15 | $ | 48 | $ | 125 | $ | 85 | $ | 273 | ||||||||||||
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ADJUSTED OPERATING INCOME (LOSS): |
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Enact segment |
$ | 137 | $ | 137 | $ | 148 | $ | 165 | $ | 135 | $ | 585 | ||||||||||||
Long-Term Care Insurance segment |
(30 | ) | (104 | ) | (46 | ) | (29 | ) | 3 | (176 | ) | |||||||||||||
Life and Annuities segment: |
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Life Insurance |
(44 | ) | 2 | (40 | ) | (23 | ) | (33 | ) | (94 | ) | |||||||||||||
Fixed Annuities |
4 | 1 | 6 | 12 | 11 | 30 | ||||||||||||||||||
Variable Annuities |
7 | 2 | 7 | 10 | 7 | 26 | ||||||||||||||||||
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Total Life and Annuities segment |
(33 | ) | 5 | (27 | ) | (1 | ) | (15 | ) | (38 | ) | |||||||||||||
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Corporate and Other |
(23 | ) | (23 | ) | (27 | ) | (10 | ) | (38 | ) | (98 | ) | ||||||||||||
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ADJUSTED OPERATING INCOME |
$ | 51 | $ | 15 | $ | 48 | $ | 125 | $ | 85 | $ | 273 | ||||||||||||
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Earnings Per Share Data: |
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Net income (loss) available to Genworth Financial, Inc.s common stockholders per share |
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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 |
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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 |
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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
(amounts in millions)
March 31, 2025 |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
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ASSETS |
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Investments: |
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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 | ) | ||||||||||
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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 | |||||||||||||||
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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 | ) | ||||||||||
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|
|
|
|||||||||||
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 companys 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 companys 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 IncomeEnact 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 MetricsEnact 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 companys 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 ActionsLong-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 companys 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 SegmentLife 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 IncomeLife and Annuities SegmentFixed 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 IncomeLife and Annuities SegmentVariable 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 LossCorporate 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 | ) | |||||||||||||||
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ADJUSTED OPERATING LOSS |
$ | (23 | ) | $ | (23) | $ | (27 | ) | $ | (10) | $ | (38) | $ | (98) | ||||||||||
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(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
(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 | ||||||||||||||||||||||||||||||||
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Total invested assets and cash |
$ | 60,585 | 100 | % | $ | 59,976 | 100 | % | $ | 62,577 | 100 | % | $ | 60,291 | 100 | % | $ | 61,014 | 100 | % | ||||||||||||||||||||||
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Public Fixed Maturity SecuritiesCredit 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 |
| | | | | | | | | | ||||||||||||||||||||||||||||||||
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Total public fixed maturity securities |
$ | 31,103 | 100 | % | $ | 30,650 | 100 | % | $ | 32,539 | 100 | % | $ | 30,851 | 100 | % | $ | 31,412 | 100 | % | ||||||||||||||||||||||
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Private Fixed Maturity SecuritiesCredit 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 | | ||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||
Total private fixed maturity securities |
$ | 14,565 | 100 | % | $ | 14,252 | 100 | % | $ | 14,803 | 100 | % | $ | 14,382 | 100 | % | $ | 14,653 | 100 | % | ||||||||||||||||||||||
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(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 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
Total fixed maturity securities |
$ | 45,668 | 100 | % | $ | 44,902 | 100 | % | $ | 47,342 | 100 | % | $ | 45,233 | 100 | % | $ | 46,065 | 100 | % | ||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||
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Subtotal |
33,171 | 96 | 32,790 | 96 | 34,699 | 96 | 33,091 | 96 | 33,718 | 96 | ||||||||||||||||||||||||||||||
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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 | | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
Subtotal |
1,318 | 4 | 1,308 | 4 | 1,418 | 4 | 1,358 | 4 | 1,521 | 4 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
Total |
$ | 34,489 | 100 | % | $ | 34,098 | 100 | % | $ | 36,117 | 100 | % | $ | 34,449 | 100 | % | $ | 35,239 | 100 | % | ||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
Total fixed maturity securities |
$ | 45,668 | 100 | % | $ | 44,902 | 100 | % | $ | 47,342 | 100 | % | $ | 45,233 | 100 | % | $ | 46,065 | 100 | % | ||||||||||||||||||||
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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 | ||||||||||||||||||
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Gross investment income before expenses and fees |
762 | 820 | 802 | 833 | 805 | 3,260 | ||||||||||||||||||
Expenses and fees |
(23 | ) | (27 | ) | (25 | ) | (25 | ) | (23 | ) | (100 | ) | ||||||||||||
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|||||||||||||
Net investment income |
$ | 739 | $ | 793 | $ | 777 | $ | 808 | $ | 782 | $ | 3,160 | ||||||||||||
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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 | % | ||||||||||||
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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 | )% | ||||||||||||
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|||||||||||||
Net investment income |
4.6 | % | 5.0 | % | 4.9 | % | 5.0 | % | 4.9 | % | 4.9 | % | ||||||||||||
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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 |
| | | | | | ||||||||||||||||||
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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 | ||||||||||||||||||
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Total net realized investment gains (losses) |
(3 | ) | | (7 | ) | (19 | ) | (22 | ) | (48 | ) | |||||||||||||
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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 | ) | ||||||||||||||
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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 | ||||||||||||||||||
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Net investment gains (losses), net |
$ | 28 | $ | (39 | ) | $ | 66 | $ | (60 | ) | $ | 50 | $ | 17 | ||||||||||
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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 |
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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 |
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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 |
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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 |
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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 | |||||||||||||||||
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(C) |
Adjusted acquisition and operating expenses, net of deferrals | $ | 236 | $ | 255 | $ | 261 | $ | 244 | $ | 241 | $ | 1,001 | |||||||||||||
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Premiums | $ | 862 | $ | 876 | $ | 874 | $ | 855 | $ | 875 | $ | 3,480 | ||||||||||||||
Add: Policy fees and other income | 158 | 154 | 163 | 167 | 158 | 642 | ||||||||||||||||||||
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(D) |
Adjusted revenues | $ | 1,020 | $ | 1,030 | $ | 1,037 | $ | 1,022 | $ | 1,033 | $ | 4,122 | |||||||||||||
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(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 companys 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 companys 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 | ) | ||||||||||||||
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Adjusted end of period invested assets and cash | $ | 63.7 | $ | 63.8 | $ | 64.1 | $ | 64.0 | $ | 64.1 | $ | 63.8 | ||||||||||||||
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(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 | ||||||||||||||||||||
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(C) |
Core Net Investment Income | $ | 735 | $ | 788 | $ | 772 | $ | 803 | $ | 779 | $ | 3,142 | |||||||||||||
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(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