Form 10-Q

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission file number 001-32195

GENWORTH FINANCIAL, INC.

(Exact name of registrant as specified in its charter)


Delaware		80-0873306
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

11011 West Broad Street Glen Allen, Virginia		23060
(Address of principal executive offices)		(Zip Code)

(804) 281-6000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $.001 per share	GNW	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 25, 2025,

414,456,966

shares of Common Stock, par value $0.001 per share, were outstanding.

PART I—FINANCIAL INFORMATION

Item 1.

Financial Statements

GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in millions, except par value and share amounts)


	March 31, 2025			December 31, 2024
	(Unaudited)
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value (amortized cost of $48,837 and $48,720, respectively, and allowance for credit losses of $14 and $10, respectively)	$	45,668		$	44,902
Equity securities, at fair value		496			515
Commercial mortgage loans		6,356			6,450
Less: Allowance for credit losses		(36	)		(39	)

Commercial mortgage loans, net		6,320			6,411
Policy loans		2,316			2,310
Limited partnerships		3,241			3,142
Other invested assets		653			648

Total investments		58,694			57,928
Cash, cash equivalents and restricted cash		1,891			2,048
Accrued investment income		639			607
Deferred acquisition costs		1,729			1,779
Intangible assets		193			197
Reinsurance recoverable		17,744			17,679
Less: Allowance for credit losses		(25	)		(24	)

Reinsurance recoverable, net		17,719			17,655
Other assets		489			444
Deferred tax asset		1,663			1,718
Market risk benefit assets		47			57
Separate account assets		4,192			4,438

Total assets	$	87,256		$	86,871

Liabilities and equity
Liabilities:
Future policy benefits	$	54,158		$	53,610
Policyholder account balances		14,447			14,594
Market risk benefit liabilities		516			465
Liability for policy and contract claims		698			670
Unearned premiums		108			115
Other liabilities		1,933			2,026
Long-term borrowings		1,519			1,518
Separate account liabilities		4,192			4,438
Liabilities related to discontinued operations		4			4

Total liabilities		77,575			77,440

Commitments and contingencies (Note 16)
Equity:
Common stock, $0.001 par value; 1,500,000,000 shares authorized; 607,290,913 and 606,314,179 shares issued, respectively; 415,879,361 and 421,419,484 shares outstanding, respectively		1			1
Additional paid-in capital		11,862			11,875
Accumulated other comprehensive income (loss)		(1,421	)		(1,642	)
Retained earnings		1,565			1,511
Treasury stock, at cost (191,411,552 and 184,894,695 shares, respectively)		(3,297	)		(3,251	)

Total Genworth Financial, Inc.’s stockholders’ equity		8,710			8,494
Noncontrolling interests		971			937

Total equity		9,681			9,431

Total liabilities and equity	$	87,256		$	86,871

See Notes to Condensed Consolidated Financial Statements

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GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in millions, except per share amounts)

(Unaudited)


	Three months ended March 31,
	2025			2024
Revenues:
Premiums	$	862		$	875
Net investment income		739			782
Net investment gains (losses)		27			49
Policy fees and other income		158			158

Total revenues		1,786			1,864

Benefits and expenses:
Benefits and other changes in policy reserves		1,217			1,203
Liability remeasurement (gains) losses		4			(8	)
Changes in fair value of market risk benefits and associated hedges		18			(23	)
Interest credited		99			125
Acquisition and operating expenses, net of deferrals		236			236
Amortization of deferred acquisition costs and intangibles		60			65
Interest expense		26			30

Total benefits and expenses		1,660			1,628

Income from continuing operations before income taxes		126			236
Provision for income taxes		36			66

Income from continuing operations		90			170
Loss from discontinued operations, net of taxes		(5	)		(1	)

Net income		85			169
Less: net income attributable to noncontrolling interests		31			30

Net income available to Genworth Financial, Inc.’s common stockholders	$	54		$	139

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.14		$	0.32

Diluted	$	0.14		$	0.31

Net income available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.13		$	0.31

Diluted	$	0.13		$	0.31

Weighted-average common shares outstanding:
Basic		418.3			443.0

Diluted		422.9			450.3

See Notes to Condensed Consolidated Financial Statements

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GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Amounts in millions)

(Unaudited)


	Three months ended March 31, 2025
	Common stock		Additional paid-in capital			Accumulated other comprehensive income (loss)			Retained earnings		Treasury stock, at cost			Total Genworth Financial, Inc.’s stockholders’ equity			Noncontrolling interests			Total equity
Balances as of December 31, 2024	$	1	$	11,875		$	(1,642	)	$	1,511	$	(3,251	)	$	8,494		$	937		$	9,431
Repurchase of subsidiary shares		—		—			—			—		—			—			(12	)		(12	)
Comprehensive income:
Net income		—		—			—			54		—			54			31			85
Other comprehensive income, net of taxes		—		—			221			—		—			221			10			231

Total comprehensive income															275			41			316
Treasury stock acquired in connection with share repurchases		—		—			—			—		(46	)		(46	)		—			(46	)
Dividends to noncontrolling interests		—		—			—			—		—			—			(5	)		(5	)
Stock-based compensation expense and exercises and other		—		(13	)		—			—		—			(13	)		10			(3	)

Balances as of March 31, 2025	$	1	$	11,862		$	(1,421	)	$	1,565	$	(3,297	)	$	8,710		$	971		$	9,681


	Three months ended March 31, 2024
	Common stock		Additional paid-in capital			Accumulated other comprehensive income (loss)			Retained earnings		Treasury stock, at cost			Total Genworth Financial, Inc.’s stockholders’ equity			Noncontrolling interests			Total equity
Balances as of December 31, 2023	$	1	$	11,884		$	(2,555	)	$	1,213	$	(3,063	)	$	7,480		$	855		$	8,335
Repurchase of subsidiary shares		—		—			—			—		—			—			(9	)		(9	)
Comprehensive income (loss):
Net income		—		—			—			139		—			139			30			169
Other comprehensive income (loss), net of taxes		—		—			461			—		—			461			(1	)		460

Total comprehensive income															600			29			629
Treasury stock acquired in connection with share repurchases		—		—			—			—		(63	)		(63	)		—			(63	)
Dividends to noncontrolling interests		—		—			—			—		—			—			(5	)		(5	)
Stock-based compensation expense and exercises and other		—		(11	)		—			—		—			(11	)		3			(8	)

Balances as of March 31, 2024	$	1	$	11,873		$	(2,094	)	$	1,352	$	(3,126	)	$	8,006		$	873		$	8,879

See Notes to Condensed Consolidated Financial Statements

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GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)

(Unaudited)


	Three months ended March 31,
	2025			2024
Cash flows from (used by) operating activities:
Net income	$	85		$	169
Less loss from discontinued operations, net of taxes		5			1
Adjustments to reconcile net income to net cash from (used by) operating activities:
Amortization of fixed maturity securities discounts and premiums		(32	)		(23	)
Net investment (gains) losses		(27	)		(49	)
Changes in fair value of market risk benefits and associated hedges		18			(23	)
Charges assessed to policyholders		(138	)		(139	)
Amortization of deferred acquisition costs and intangibles		60			65
Deferred income taxes		2			(1	)
Derivative instruments, limited partnerships and other		(27	)		(138	)
Long-term incentive compensation expense		11			14
Change in certain assets and liabilities:
Accrued investment income and other assets		(47	)		(68	)
Insurance reserves		149			140
Current tax liabilities		34			67
Other liabilities, policy and contract claims and other policy-related balances		(59	)		(122	)

Net cash from (used by) operating activities		34			(107	)

Cash flows from (used by) investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		639			649
Commercial mortgage loans		202			127
Limited partnerships and other invested assets		50			59
Proceeds from sales of investments:
Fixed maturity and equity securities		334			635
Purchases and originations of investments:
Fixed maturity and equity securities		(1,017	)		(1,157	)
Commercial mortgage loans		(107	)		(45	)
Limited partnerships and other invested assets		(109	)		(125	)
Short-term investments, net		—			17
Policy loans, net		1			—
Other		(7	)		(17	)

Net cash from (used by) investing activities		(14	)		143

Cash flows from (used by) financing activities:
Deposits to universal life and investment contracts		129			133
Withdrawals from universal life and investment contracts		(221	)		(317	)
Repayment and repurchase of long-term debt		—			(6	)
Repurchase of subsidiary shares		(12	)		(9	)
Treasury stock acquired in connection with share repurchases		(45	)		(63	)
Dividends paid to noncontrolling interests		(5	)		(5	)
Other, net		(23	)		(32	)

Net cash used by financing activities		(177	)		(299	)

Net change in cash, cash equivalents and restricted cash		(157	)		(263	)
Cash, cash equivalents and restricted cash at beginning of period		2,048			2,215

Cash, cash equivalents and restricted cash at end of period	$	1,891		$	1,952

See Notes to Condensed Consolidated Financial Statements

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1) Business and Basis of Presentation

Genworth Holdings, Inc. (“Genworth Holdings”) (formerly known as Genworth Financial, Inc.) was incorporated in Delaware in 2003 in preparation for an initial public offering of its common stock, which was completed on May 28, 2004. On April 1, 2013, Genworth Holdings completed a holding company reorganization pursuant to which Genworth Holdings became a direct, 100% owned subsidiary of a new public holding company that it had formed. The new public holding company was incorporated in Delaware on December 5, 2012, in connection with the reorganization, and was renamed Genworth Financial, Inc. (“Genworth Financial”) upon the completion of the reorganization.

The accompanying unaudited condensed financial statements include on a consolidated basis the accounts of Genworth Financial and its affiliate companies in which it holds a majority voting interest or power to direct activities of certain variable interest entities, which on a consolidated basis is referred to as “Genworth,” the “Company,” “we,” “us” or “our” unless the context otherwise requires. All intercompany accounts and transactions have been eliminated in consolidation. References to “Genworth Financial” refer solely to Genworth Financial, Inc., and not to any of its consolidated subsidiaries.

We manage our business through the following three reportable segments:

•

Enact

. Enact Holdings, Inc. (“Enact Holdings”) comprises our Enact segment. Through Enact Holdings’ mortgage insurance subsidiaries, we offer private mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans at specified coverage percentages (“primary mortgage insurance”). Enact Holdings also selectively enters into insurance transactions with lenders and investors, under which it insures a portfolio of loans at or after origination (“pool mortgage insurance”).

•

Long-Term Care Insurance.

Through our principal U.S. life insurance subsidiaries, we offer long-term care insurance products in the United States. Long-term care insurance products are intended to protect against the significant and escalating costs of long-term care services provided in the insured’s home or assisted living or nursing facilities.

•

Life and Annuities.

We service a variety of protection and retirement income products through our principal U.S. life insurance subsidiaries that are not actively marketed or sold. These products include traditional and non-traditional life insurance (term, universal and term universal life insurance as well as corporate-owned life insurance and funding agreements), fixed annuities and variable annuities.

In addition to our three reportable segments, we also have Corporate and Other, which includes debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, and eliminations of inter-segment transactions. Corporate and Other also includes the results of other businesses that are not individually reportable, such as start-up results of our CareScout business (“CareScout”) related to our aging care growth initiatives and certain international businesses.

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and rules and regulations of the U.S. Securities and Exchange Commission. Preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements include all adjustments (including normal recurring adjustments) considered necessary by management to present a fair statement of the financial position, results of operations and cash flows for the periods presented. The results

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

reported in these unaudited condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes contained in our 2024 Annual Report on Form 10-K.

On July 31, 2023, Genworth Financial’s Board of Directors authorized an additional $350 million of share repurchases under the existing share repurchase program that began in May 2022. Pursuant to the program, during the three months ended March 31, 2025, Genworth Financial repurchased 6,516,857 shares of its common stock at an average price of $6.91 per share for a total cost of $46 million, including excise taxes and other costs paid in connection with acquiring the shares. The repurchased shares were recorded at cost and presented as treasury stock in a separate caption in equity in our condensed consolidated balance sheets. Genworth Financial also repurchased 1,422,395 shares of its common stock at an average price of $7.03 per share under the share repurchase program through a Rule 10b5-1 trading plan in April 2025, leaving approximately $100 million available for repurchase under the program as of April 30, 2025. Under the program, share repurchases may be made at Genworth’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and number of future shares repurchased under the share repurchase program will depend on a variety of factors, including Genworth Financial’s stock price and trading volume, and general business and market conditions, among other factors. The authorization has no expiration date and may be modified, suspended or terminated at any time.

(2) Accounting Changes

Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (the “FASB”) issued new accounting guidance to require disaggregated disclosures in the notes to the financial statements of certain categories of expenses included in our consolidated statements of income, including employee compensation, depreciation and intangible asset amortization. This guidance is effective for us for annual reporting periods beginning on January 1, 2027 and interim periods beginning on January 1, 2028 using the prospective or retrospective method, with early adoption permitted. We are currently evaluating the impact the guidance may have on our processes, controls and disclosures.

In December 2023, the FASB issued new accounting guidance to improve income tax disclosures. The guidance requires annual disclosure of specific categories in the income tax rate reconciliation, separate disclosure of additional information related to reconciling items that meet a quantitative threshold and additional disclosures about income taxes paid, among other qualitative and quantitative disclosure improvements. The guidance will have no impact on our consolidated financial statements but will expand our disclosures effective for annual reporting periods beginning on January 1, 2025 using the prospective or retrospective method, which we are in the process of developing.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(3) Earnings (Loss) Per Share

Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated:


	Three months ended March 31,
(Amounts in millions, except per share amounts)	2025			2024
Weighted-average common shares used in basic earnings per share calculations		418.3			443.0
Potentially dilutive securities:
Performance stock units, restricted stock units and other equity-based awards		4.6			7.3

Weighted-average common shares used in diluted earnings per share calculations		422.9			450.3

Income from continuing operations:
Income from continuing operations	$	90		$	170
Less: net income from continuing operations attributable to noncontrolling interests		31			30

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	59		$	140

Basic per share	$	0.14		$	0.32

Diluted per share	$	0.14		$	0.31

Loss from discontinued operations:
Loss from discontinued operations, net of taxes	$	(5	)	$	(1	)

Basic per share	$	(0.01	)	$	—

Diluted per share	$	(0.01	)	$	—

Net income:
Income from continuing operations	$	90		$	170
Loss from discontinued operations, net of taxes		(5	)		(1	)

Net income		85			169
Less: net income attributable to noncontrolling interests		31			30

Net income available to Genworth Financial, Inc.’s common stockholders	$	54		$	139

Basic per share (1)	$	0.13		$	0.31

Diluted per share	$	0.13		$	0.31

(1)	May not total due to whole number calculation.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(4) Investments

(a) Net Investment Income

Sources of net investment income were as follows for the periods indicated:


	Three months ended March 31,
(Amounts in millions)	2025			2024
Fixed maturity securities—taxable	$	559		$	554
Fixed maturity securities—non-taxable		—			1
Equity securities		3			2
Commercial mortgage loans		73			75
Policy loans		36			58
Limited partnerships		8			20
Other invested assets (1)		61			68
Cash, cash equivalents, restricted cash and short-term investments		22			27

Gross investment income before expenses and fees		762			805
Expenses and fees		(23	)		(23	)

Net investment income	$	739		$	782

(1)	Includes amounts related to derivative instruments. See note 5 for additional information.

(b) Net Investment Gains (Losses)

The following table sets forth net investment gains (losses) for the periods indicated:


	Three months ended March 31,
(Amounts in millions)	2025			2024

Realized investment gains (losses):
Available-for-sale fixed maturity securities:
Realized gains	$	4		$	7
Realized losses		(8	)		(29	)

Net realized gains (losses) on available-for-sale fixed maturity securities		(4	)		(22	)
Net realized gains (losses) on equity securities sold		1			—

Total net realized investment gains (losses)		(3	)		(22	)

Net change in allowance for credit losses on available-for-sale fixed maturity securities		(4	)		—
Net unrealized gains (losses) on equity securities still held		(14	)		32
Net unrealized gains (losses) on limited partnerships		38			43
Commercial mortgage loans		3			(2	)
Derivative instruments (1)		6			1
Other		1			(3	)

Net investment gains (losses)	$	27		$	49

(1)	See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses).

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

See Note 2—Summary of Significant Accounting Policies included in the Notes to Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for a discussion of our policy for evaluating and measuring the allowance for credit losses related to our available-for-sale fixed maturity securities. The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity securities as of and for the three months ended March 31, 2025:


(Amounts in millions)	Beginning balance		Increase from securities without allowance in previous periods		Increase (decrease) from securities with allowance in previous periods		Securities sold		Decrease due to change in intent or requirement to sell		Write-offs		Recoveries		Ending balance
Fixed maturity securities:
U.S. corporate	$	4	$	2	$	—	$	—	$	—	$	—	$	—	$	6
Non-U.S. corporate		3		1		—		—		—		—		—		4
Commercial mortgage-backed		3		—		1		—		—		—		—		4

Total available-for-sale fixed maturity securities	$	10	$	3	$	1	$	—	$	—	$	—	$	—	$	14

The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity securities as of and for the three months ended March 31, 2024:


(Amounts in millions)	Beginning balance		Increase from securities without allowance in previous periods		Increase (decrease) from securities with allowance in previous periods		Securities sold		Decrease due to change in intent or requirement to sell		Write-offs		Recoveries		Ending balance
Fixed maturity securities:
Commercial mortgage-backed	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	7

Total available-for-sale fixed maturity securities	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	7

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of the dates indicated:


(Amounts in millions)	March 31, 2025			December 31, 2024
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses	$	(3,150	)	$	(3,801	)
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses		(5	)		(7	)
Adjustments to policyholder contract balances		73			83
Income taxes, net		393			530

Net unrealized investment gains (losses)		(2,689	)		(3,195	)
Less: net unrealized investment gains (losses) attributable to noncontrolling interests		(29	)		(39	)

Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.	$	(2,660	)	$	(3,156	)

The change in net unrealized gains (losses) on available-for-sale investment securities reported in accumulated other comprehensive income (loss) was as follows as of and for the three months ended March 31:


(Amounts in millions)	2025			2024
Beginning balance	$	(3,156	)	$	(2,130	)
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on fixed maturity securities		649			(654	)
Adjustments to policyholder contract balances		(10	)		14
Provision for income taxes		(136	)		137

Change in unrealized gains (losses) on investment securities		503			(503	)
Reclassification adjustments to net investment (gains) losses (1)		3			17

Change in net unrealized investment gains (losses)		506			(486	)
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests		10			(1	)

Ending balance	$	(2,660	)	$	(2,615	)

(1)	Net of taxes of $(1 ) million and $(5 ) million during the three months ended March 31, 2025 and 2024, respectively.

Amounts reclassified out of accumulated other comprehensive income (loss) to net investment gains (losses) include realized gains (losses) on sales of securities, which are determined on a specific identification basis.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(d) Fixed Maturity Securities

As of March 31, 2025, the amortized cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale were as follows:


(Amounts in millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Allowance for credit losses			Fair value

Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3,830	$	58	$	(294	)	$	—		$	3,594
State and political subdivisions		2,437		11		(279	)		—			2,169
Non-U.S. government		1,127		9		(107	)		—			1,029
U.S. corporate:
Utilities		4,732		66		(422	)		—			4,376
Energy		2,520		48		(156	)		—			2,412
Finance and insurance		7,488		74		(603	)		(4	)		6,955
Consumer—non-cyclical		4,726		73		(341	)		—			4,458
Technology and communications		3,062		49		(287	)		—			2,824
Industrial		1,143		11		(99	)		—			1,055
Capital goods		2,392		48		(136	)		—			2,304
Consumer—cyclical		1,587		15		(101	)		(2	)		1,499
Transportation		1,130		35		(84	)		—			1,081
Other		277		2		(14	)		—			265

Total U.S. corporate		29,057		421		(2,243	)		(6	)		27,229

Non-U.S. corporate:
Utilities		741		1		(50	)		(4	)		688
Energy		1,031		19		(46	)		—			1,004
Finance and insurance		1,793		27		(103	)		—			1,717
Consumer—non-cyclical		618		4		(73	)		—			549
Technology and communications		788		7		(73	)		—			722
Industrial		819		11		(40	)		—			790
Capital goods		654		6		(40	)		—			620
Consumer—cyclical		246		1		(14	)		—			233
Transportation		459		12		(25	)		—			446
Other		518		8		(35	)		—			491

Total non-U.S. corporate		7,667		96		(499	)		(4	)		7,260

Residential mortgage-backed		946		9		(44	)		—			911
Commercial mortgage-backed		1,579		1		(258	)		(4	)		1,318
Other asset-backed		2,194		10		(46	)		—			2,158

Total available-for-sale fixed maturity securities	$	48,837	$	615	$	(3,770	)	$	(14	)	$	45,668

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of December 31, 2024, the amortized cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale were as follows:


(Amounts in millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Allowance for credit losses			Fair value

Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3,847	$	24	$	(378	)	$	—		$	3,493
State and political subdivisions		2,452		8		(311	)		—			2,149
Non-U.S. government		1,021		5		(117	)		—			909
U.S. corporate:
Utilities		4,685		47		(450	)		—			4,282
Energy		2,444		38		(170	)		—			2,312
Finance and insurance		7,533		57		(675	)		(4	)		6,911
Consumer—non-cyclical		4,728		51		(392	)		—			4,387
Technology and communications		2,992		42		(311	)		—			2,723
Industrial		1,166		11		(105	)		—			1,072
Capital goods		2,360		37		(154	)		—			2,243
Consumer—cyclical		1,602		13		(118	)		—			1,497
Transportation		1,135		30		(91	)		—			1,074
Other		283		2		(15	)		—			270

Total U.S. corporate		28,928		328		(2,481	)		(4	)		26,771

Non-U.S. corporate:
Utilities		750		1		(55	)		(3	)		693
Energy		1,046		16		(56	)		—			1,006
Finance and insurance		1,877		20		(123	)		—			1,774
Consumer—non-cyclical		632		3		(79	)		—			556
Technology and communications		801		5		(80	)		—			726
Industrial		805		7		(46	)		—			766
Capital goods		633		4		(46	)		—			591
Consumer—cyclical		245		1		(16	)		—			230
Transportation		454		11		(29	)		—			436
Other		587		5		(43	)		—			549

Total non-U.S. corporate		7,830		73		(573	)		(3	)		7,327

Residential mortgage-backed		862		4		(55	)		—			811
Commercial mortgage-backed		1,591		1		(288	)		(3	)		1,301
Other asset-backed		2,189		9		(57	)		—			2,141

Total available-for-sale fixed maturity securities	$	48,720	$	452	$	(4,260	)	$	(10	)	$	44,902

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses had not been recorded, aggregated by investment type and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of March 31, 2025:


	Less than 12 months							12 months or more							Total
(Dollar amounts in millions)	Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities

Description of Securities
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	546	$	(13	)		31	$	1,334	$	(281	)		44	$	1,880	$	(294	)		75
State and political subdivisions		270		(11	)		39		1,451		(268	)		257		1,721		(279	)		296
Non-U.S. government		390		(12	)		96		397		(95	)		61		787		(107	)		157
U.S. corporate		3,871		(114	)		665		14,583		(2,124	)		1,920		18,454		(2,238	)		2,585
Non-U.S. corporate		946		(20	)		146		3,965		(479	)		523		4,911		(499	)		669
Residential mortgage-backed		145		(1	)		53		411		(43	)		147		556		(44	)		200
Commercial mortgage-backed		—		—			—		1,241		(258	)		201		1,241		(258	)		201
Other asset-backed		296		(2	)		89		871		(44	)		180		1,167		(46	)		269

Total for fixed maturity securities in an unrealized loss position	$	6,464	$	(173	)		1,119	$	24,253	$	(3,592	)		3,333	$	30,717	$	(3,765	)		4,452

% Below cost:
<20% Below cost	$	6,439	$	(163	)		1,113	$	20,640	$	(2,250	)		2,774	$	27,079	$	(2,413	)		3,887
20%-50% Below cost		25		(10	)		6		3,613		(1,342	)		559		3,638		(1,352	)		565

Total for fixed maturity securities in an unrealized loss position	$	6,464	$	(173	)		1,119	$	24,253	$	(3,592	)		3,333	$	30,717	$	(3,765	)		4,452

Investment grade	$	6,203	$	(167	)		1,070	$	23,449	$	(3,489	)		3,214	$	29,652	$	(3,656	)		4,284
Below investment grade		261		(6	)		49		804		(103	)		119		1,065		(109	)		168

Total for fixed maturity securities in an unrealized loss position	$	6,464	$	(173	)		1,119	$	24,253	$	(3,592	)		3,333	$	30,717	$	(3,765	)		4,452

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the gross unrealized losses and fair values of our corporate securities for which an allowance for credit losses had not been recorded, aggregated by investment type and length of time that individual investment securities had been in a continuous unrealized loss position, based on industry, as of March 31, 2025:


	Less than 12 months							12 months or more							Total
(Dollar amounts in millions)	Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities
Description of Securities
U.S. corporate:
Utilities	$	775	$	(23	)		113	$	1,970	$	(399	)		297	$	2,745	$	(422	)		410
Energy		346		(8	)		68		1,108		(148	)		144		1,454		(156	)		212
Finance and insurance		730		(16	)		128		4,417		(582	)		562		5,147		(598	)		690
Consumer—non-cyclical		696		(17	)		112		2,294		(324	)		270		2,990		(341	)		382
Technology and communications		412		(15	)		76		1,700		(272	)		214		2,112		(287	)		290
Industrial		181		(7	)		29		572		(92	)		83		753		(99	)		112
Capital goods		331		(7	)		62		1,047		(129	)		143		1,378		(136	)		205
Consumer—cyclical		203		(4	)		42		893		(97	)		125		1,096		(101	)		167
Transportation		148		(13	)		30		493		(71	)		68		641		(84	)		98
Other		49		(4	)		5		89		(10	)		14		138		(14	)		19

Subtotal, U.S. corporate securities		3,871		(114	)		665		14,583		(2,124	)		1,920		18,454		(2,238	)		2,585

Non-U.S. corporate:
Utilities		152		(2	)		17		458		(48	)		51		610		(50	)		68
Energy		189		(6	)		21		379		(40	)		45		568		(46	)		66
Finance and insurance		125		(2	)		28		1,033		(101	)		145		1,158		(103	)		173
Consumer—non-cyclical		92		(3	)		17		365		(70	)		44		457		(73	)		61
Technology and communications		87		(2	)		15		483		(71	)		60		570		(73	)		75
Industrial		118		(1	)		24		331		(39	)		48		449		(40	)		72
Capital goods		98		(2	)		14		317		(38	)		43		415		(40	)		57
Consumer—cyclical		50		(1	)		6		119		(13	)		20		169		(14	)		26
Transportation		35		(1	)		4		250		(24	)		33		285		(25	)		37
Other		—		—			—		230		(35	)		34		230		(35	)		34

Subtotal, non-U.S. corporate securities		946		(20	)		146		3,965		(479	)		523		4,911		(499	)		669

Total for corporate securities in an unrealized loss position	$	4,817	$	(134	)		811	$	18,548	$	(2,603	)		2,443	$	23,365	$	(2,737	)		3,254

We did not recognize an allowance for credit losses on securities in an unrealized loss position included in the tables above. Based on a qualitative and quantitative review of the issuers of the securities, we believe the decline in fair value was largely due to increased interest rates since purchase and was not indicative of credit losses. The issuers continue to make timely principal and interest payments. For all securities in an unrealized loss position without an allowance for credit losses, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell nor do we expect that we will be required to sell these securities prior to recovering our amortized cost.

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	Less than 12 months							12 months or more							Total
(Dollar amounts in millions)	Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities
Description of Securities
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	1,013	$	(43	)		67	$	1,270	$	(335	)		47	$	2,283	$	(378	)		114
State and political subdivisions		432		(15	)		69		1,406		(296	)		256		1,838		(311	)		325
Non-U.S. government		438		(18	)		130		386		(99	)		60		824		(117	)		190
U.S. corporate		5,001		(173	)		894		14,626		(2,302	)		1,997		19,627		(2,475	)		2,891
Non-U.S. corporate		1,359		(34	)		238		4,126		(538	)		553		5,485		(572	)		791
Residential mortgage-backed		151		(3	)		69		409		(52	)		147		560		(55	)		216
Commercial mortgage-backed		—		—			—		1,244		(288	)		206		1,244		(288	)		206
Other asset-backed		182		(3	)		56		971		(54	)		194		1,153		(57	)		250

Total for fixed maturity securities in an unrealized loss position	$	8,576	$	(289	)		1,523	$	24,438	$	(3,964	)		3,460	$	33,014	$	(4,253	)		4,983

% Below cost:
<20% Below cost	$	8,505	$	(266	)		1,511	$	19,956	$	(2,322	)		2,794	$	28,461	$	(2,588	)		4,305
20%-50% Below cost		71		(23	)		12		4,481		(1,641	)		664		4,552		(1,664	)		676
>50% Below cost		—		—			—		1		(1	)		2		1		(1	)		2

Total for fixed maturity securities in an unrealized loss position	$	8,576	$	(289	)		1,523	$	24,438	$	(3,964	)		3,460	$	33,014	$	(4,253	)		4,983

Investment grade	$	8,337	$	(282	)		1,469	$	23,621	$	(3,857	)		3,335	$	31,958	$	(4,139	)		4,804
Below investment grade		239		(7	)		54		817		(107	)		125		1,056		(114	)		179

Total for fixed maturity securities in an unrealized loss position	$	8,576	$	(289	)		1,523	$	24,438	$	(3,964	)		3,460	$	33,014	$	(4,253	)		4,983

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	Less than 12 months							12 months or more							Total
(Dollar amounts in millions)	Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities
Description of Securities
U.S. corporate:
Utilities	$	1,005	$	(26	)		151	$	1,968	$	(424	)		303	$	2,973	$	(450	)		454
Energy		491		(25	)		107		1,051		(145	)		137		1,542		(170	)		244
Finance and insurance		917		(26	)		172		4,472		(643	)		584		5,389		(669	)		756
Consumer—non-cyclical		917		(34	)		160		2,267		(358	)		289		3,184		(392	)		449
Technology and communications		454		(16	)		86		1,772		(295	)		235		2,226		(311	)		321
Industrial		220		(8	)		34		565		(97	)		90		785		(105	)		124
Capital goods		464		(21	)		81		1,009		(133	)		144		1,473		(154	)		225
Consumer—cyclical		277		(10	)		58		883		(108	)		126		1,160		(118	)		184
Transportation		187		(6	)		37		529		(85	)		73		716		(91	)		110
Other		69		(1	)		8		110		(14	)		16		179		(15	)		24

Subtotal, U.S. corporate securities		5,001		(173	)		894		14,626		(2,302	)		1,997		19,627		(2,475	)		2,891

Non-U.S. corporate:
Utilities		152		(3	)		23		455		(51	)		51		607		(54	)		74
Energy		223		(7	)		33		435		(49	)		48		658		(56	)		81
Finance and insurance		270		(4	)		58		1,116		(119	)		157		1,386		(123	)		215
Consumer—non-cyclical		110		(7	)		24		365		(72	)		48		475		(79	)		72
Technology and communications		114		(4	)		18		489		(76	)		65		603		(80	)		83
Industrial		152		(2	)		33		340		(44	)		51		492		(46	)		84
Capital goods		118		(3	)		18		313		(43	)		43		431		(46	)		61
Consumer—cyclical		52		(1	)		8		117		(15	)		20		169		(16	)		28
Transportation		34		(1	)		4		247		(28	)		34		281		(29	)		38
Other		134		(2	)		19		249		(41	)		36		383		(43	)		55

Subtotal, non-U.S. corporate securities		1,359		(34	)		238		4,126		(538	)		553		5,485		(572	)		791

Total for corporate securities in an unrealized loss position	$	6,360	$	(207	)		1,132	$	18,752	$	(2,840	)		2,550	$	25,112	$	(3,047	)		3,682

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The scheduled maturity distribution of fixed maturity securities as of March 31, 2025 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.


(Amounts in millions)	Amortized cost		Fair value

Due one year or less	$	1,418	$	1,413
Due after one year through five years		8,631		8,474
Due after five years through ten years		11,582		11,132
Due after ten years		22,487		20,262

Subtotal		44,118		41,281
Residential mortgage-backed		946		911
Commercial mortgage-backed		1,579		1,318
Other asset-backed		2,194		2,158

Total	$	48,837	$	45,668

As of March 31, 2025, securities issued by finance and insurance, utilities, consumer—non-cyclical and technology and communications industry groups represented approximately 26%, 15%, 15% and 10%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio.

As of March 31, 2025, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of stockholders’ equity.

(e) Commercial Mortgage Loans

Our mortgage loans are collateralized by commercial properties, including multi-family residential buildings. The carrying value of commercial mortgage loans is stated at original cost net of principal payments, amortization and allowance for credit losses.

We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated:


	March 31, 2025						December 31, 2024
(Amounts in millions)	Carrying value			% of total			Carrying value			% of total
Property type:
Retail	$	2,668			42	%	$	2,716			42	%
Office		1,382			22			1,391			22
Industrial		1,325			21			1,331			21
Apartments		486			8			498			7
Mixed use		354			5			360			6
Other		141			2			154			2

Subtotal		6,356			100	%		6,450			100	%

Allowance for credit losses		(36	)					(39	)

Total	$	6,320					$	6,411

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	March 31, 2025						December 31, 2024
(Amounts in millions)	Carrying value			% of total			Carrying value			% of total
Geographic region:
South Atlantic	$	1,714			27	%	$	1,750			27	%
Pacific		1,118			18			1,157			18
Mountain		993			16			971			15
Middle Atlantic		857			13			871			13
West South Central		532			8			539			8
East North Central		418			7			431			7
West North Central		353			5			372			6
East South Central		204			3			190			3
New England		167			3			169			3

Subtotal		6,356			100	%		6,450			100	%

Allowance for credit losses		(36	)					(39	)

Total	$	6,320					$	6,411

As of March 31, 2025 and December 31, 2024, we had one commercial mortgage loan in the industrial property type with an amortized cost of $7 million that was more than 90 days past due and on non-accrual status. This loan did not have an allowance for credit losses in either period. We had no other commercial mortgage loans past due or on non-accrual status as of March 31, 2025 and December 31, 2024. For a discussion of our policy related to placing commercial mortgage loans on non-accrual status, see Note 2—Summary of Significant Accounting Policies included in the Notes to Consolidated Financial Statements in our 2024 Annual Report on Form 10-K.

Occasionally, we may make modifications of interest rate reductions, term extensions and/or principal forgiveness related to commercial mortgage loans. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. As the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses as a result of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification.

We did not have any loan modifications or extensions associated with borrowers experiencing financial difficulty that resulted in the consideration of whether to establish a new loan or to continue accounting for the modification or extension under the existing loan during the three months ended March 31, 2025 and 2024. As of March 31, 2025, all loans previously modified during the 12 months prior remained current.

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table sets forth the allowance for credit losses related to commercial mortgage loans as of and for the periods indicated:


	Three months ended March 31,
(Amounts in millions)	2025			2024
Allowance for credit losses:
Beginning balance	$	39		$	27
Provision		(3	)		2
Write-offs		—			—
Recoveries		—			—

Ending balance	$	36		$	29

In evaluating the credit quality of commercial mortgage loans, we assess the performance of the underlying loans using both quantitative and qualitative criteria. Certain risks associated with commercial mortgage loans can be evaluated by reviewing both the debt-to-value and debt service coverage ratio to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable us to recover our unpaid principal balance in the event of default by the borrower. The average debt-to-value ratio is based on our most recent estimate of the fair value for the underlying property which is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A lower debt-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property were sold. The debt service coverage ratio is based on “normalized” annual income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio is not used without considering other factors associated with the borrower, such as the borrower’s liquidity or access to other resources that may result in our expectation that the borrower will continue to make the future scheduled payments.

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables set forth commercial mortgage loans by year of origination and credit quality indicator as of March 31, 2025:


(Amounts in millions)	2025		2024		2023		2022		2021		2020 and prior		Total

Debt-to-value:
0% - 50%	$	—	$	32	$	44	$	86	$	112	$	1,962	$	2,236
51% - 60%		62		34		10		244		250		768		1,368
61% - 75%		45		134		212		524		488		1,019		2,422
76% - 100%		—		—		—		50		23		225		298
Greater than 100%		—		—		—		—		—		32		32

Total amortized cost	$	107	$	200	$	266	$	904	$	873	$	4,006	$	6,356

Debt service coverage ratio:
Less than 1.00	$	—	$	—	$	20	$	—	$	3	$	231	$	254
1.00 - 1.25		—		3		14		50		25		295		387
1.26 - 1.50		45		98		147		137		40		597		1,064
1.51 - 2.00		26		68		54		454		436		1,438		2,476
Greater than 2.00		36		31		31		263		369		1,445		2,175

Total amortized cost	$	107	$	200	$	266	$	904	$	873	$	4,006	$	6,356

The following tables set forth the debt-to-value of commercial mortgage loans by property type as of the dates indicated:


	March 31, 2025
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100%			Total
Property type:
Retail	$	1,068		$	725		$	873		$	2		$	—		$	2,668
Office		279			196			646			261			—			1,382
Industrial		568			266			480			4			7			1,325
Apartments		171			112			187			16			—			486
Mixed use		65			39			210			15			25			354
Other		85			30			26			—			—			141

Total amortized cost	$	2,236		$	1,368		$	2,422		$	298		$	32		$	6,356

% of total		35	%		22	%		38	%		5	%		—	%		100	%

Weighted-average debt service coverage ratio		2.37			1.86			1.60			1.37			1.01			1.91

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	December 31, 2024
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100%			Total
Property type:
Retail	$	1,108		$	689		$	917		$	2		$	—		$	2,716
Office		269			220			639			263			—			1,391
Industrial		596			226			498			4			7			1,331
Apartments		181			96			205			16			—			498
Mixed use		70			32			218			15			25			360
Other		83			45			26			—			—			154

Total amortized cost	$	2,307		$	1,308		$	2,503		$	300		$	32		$	6,450

% of total		36	%		20	%		39	%		5	%		—	%		100	%

Weighted-average debt service coverage ratio		2.38			1.87			1.60			1.37			1.01			1.92

The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated:


	March 31, 2025
(Amounts in millions)	Less than 1.00			1.00 - 1.25			1.26 - 1.50			1.51 - 2.00			Greater than 2.00			Total
Property type:
Retail	$	27		$	97		$	477		$	1,196		$	871		$	2,668
Office		123			113			221			486			439			1,382
Industrial		32			69			213			467			544			1,325
Apartments		14			37			97			147			191			486
Mixed use		50			39			40			167			58			354
Other		8			32			16			13			72			141

Total amortized cost	$	254		$	387		$	1,064		$	2,476		$	2,175		$	6,356

% of total		4	%		6	%		17	%		39	%		34	%		100	%

Weighted-average debt-to-value		74	%		67	%		65	%		58	%		45	%		56	%

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	December 31, 2024
(Amounts in millions)	Less than 1.00			1.00 - 1.25			1.26 - 1.50			1.51 - 2.00			Greater than 2.00			Total
Property type:
Retail	$	35		$	98		$	469		$	1,215		$	899		$	2,716
Office		124			114			207			499			447			1,391
Industrial		33			70			202			486			540			1,331
Apartments		14			37			99			148			200			498
Mixed use		50			39			41			172			58			360
Other		9			33			16			13			83			154

Total amortized cost	$	265		$	391		$	1,034		$	2,533		$	2,227		$	6,450

% of total		4	%		6	%		16	%		39	%		35	%		100	%

Weighted-average debt-to-value		74	%		67	%		65	%		58	%		45	%		56	%

(5) Derivative Instruments

Our business activities routinely deal with fluctuations in interest rates, equity prices, currency exchange rates and other asset and liability prices. We use derivative instruments to mitigate or reduce some of these risks. We have established policies for managing each of these risks, including prohibitions on derivatives market-making and other speculative derivatives activities. These policies require the use of derivative instruments in concert with other techniques to reduce or mitigate these risks. While we use derivatives to mitigate or reduce risks, certain derivatives do not meet the accounting requirements to be designated as hedging instruments and are denoted as “derivatives not designated as hedges” in the following disclosures. For derivatives that meet the accounting requirements to be designated as hedges, the following disclosures for these derivatives are denoted as “derivatives designated as hedges,” which include cash flow hedges.

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The following table sets forth our positions in derivative instruments as of the dates indicated:


	Derivative assets					Derivative liabilities
		Fair value					Fair value
(Amounts in millions)	Balance sheet classification	March 31, 2025		December 31, 2024		Balance sheet classification	March 31, 2025		December 31, 2024
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps	Other invested assets	$	23	$	18	Other liabilities	$	690	$	749
Foreign currency swaps	Other invested assets		12		13	Other liabilities		1		1
Forward bond purchase commitments	Other invested assets		19		6	Other liabilities		21		44

Total cash flow hedges			54		37			712		794

Total derivatives designated as hedges			54		37			712		794

Derivatives not designated as hedges
Equity index options	Other invested assets		12		19	Other liabilities		—		—
Financial futures (1)	Other invested assets		—		—	Other liabilities		—		—
Forward bond purchase commitments	Other invested assets		—		—	Other liabilities		23		27
Foreign currency forward contracts	Other invested assets		1		—	Other liabilities		—		—
Fixed indexed annuity embedded derivatives	Other assets		—		—	Policyholder account balances (2)		145		155
Indexed universal life embedded derivatives	Reinsurance recoverable		—		—	Policyholder account balances (3)		13		15

Total derivatives not designated as hedges			13		19			181		197

Total derivatives		$	67	$	56		$	893	$	991

(1)	The period end valuations of financial futures were zero as a result of settling the margins on these contracts on a daily basis.

(2)	Represents the embedded derivatives associated with our fixed indexed annuity liabilities.

(3)	Represents the embedded derivatives associated with our indexed universal life liabilities.

The fair value of derivative positions presented above was not offset by the respective collateral amounts received or provided under these agreements.

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The activity associated with derivative instruments can generally be measured by the change in notional value over the periods presented. However, for fixed indexed annuity embedded derivatives and indexed universal life embedded derivatives, the change between periods is best illustrated by the number of policies. The following tables represent activity associated with derivative instruments as of the dates indicated:


		December 31,				Maturities/			March 31,
(Notional in millions)	Measurement	2024		Additions		terminations			2025
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps	Notional	$	8,757	$	—	$	(71	)	$	8,686
Foreign currency swaps	Notional		144		12		—			156
Forward bond purchase commitments	Notional		2,639		63		—			2,702

Total cash flow hedges			11,540		75		(71	)		11,544

Total derivatives designated as hedges			11,540		75		(71	)		11,544

Derivatives not designated as hedges
Equity index options	Notional		604		127		(152	)		579
Financial futures	Notional		1,102		1,063		(1,115	)		1,050
Forward bond purchase commitments	Notional		500		—		—			500
Foreign currency forward contracts	Notional		—		387		—			387

Total derivatives not designated as hedges			2,206		1,577		(1,267	)		2,516

Total derivatives		$	13,746	$	1,652	$	(1,338	)	$	14,060


		December 31,				Maturities/			March 31,
(Number of policies)	Measurement	2024		Additions		terminations			2025
Derivatives not designated as hedges
Fixed indexed annuity embedded derivatives	Policies		4,867		—		(169	)		4,698
Indexed universal life embedded derivatives	Policies		717		—		(8	)		709

Cash Flow Hedges

Certain derivative instruments are designated as cash flow hedges. The changes in fair value of these instruments are recorded as a component of other comprehensive income (loss) (“OCI”). We designate and account for the following as cash flow hedges when they have met the effectiveness requirements: (i) various types of interest rate swaps to convert floating rate liabilities into fixed rate liabilities; (ii) receive U.S. dollar fixed on foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments; (iii) forward starting interest rate swaps to hedge against changes in interest rates associated with future fixed rate bond purchases and/or interest income; (iv) forward bond purchase commitments to hedge against the variability in the anticipated cash flows required to purchase future fixed rate bonds; and (v) other instruments to hedge the cash flows of various forecasted transactions.

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The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended March 31, 2025:


(Amounts in millions)	Gain (loss) recognized in OCI			Gain (loss) reclassified into net income from OCI		Classification of gain (loss) reclassified into net income	Gain (loss) recognized in net income		Classification of gain (loss) recognized in net income
Interest rate swaps hedging assets	$	62		$	48	Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets		—			1	Net investment gains (losses)		—	Net investment gains (losses)
Interest rate swaps hedging liabilities		(2	)		—	Interest expense		—	Net investment gains (losses)
Foreign currency swaps		(1	)		—	Net investment income		—	Net investment gains (losses)
Forward bond purchase commitments		36			—	Net investment gains (losses)		—	Net investment gains (losses)

Total	$	95		$	49		$	—

The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended March 31, 2024:


(Amounts in millions)	Gain (loss) recognized in OCI			Gain (loss) reclassified into net income from OCI			Classification of gain (loss) reclassified into net income	Gain (loss) recognized in net income		Classification of gain (loss) recognized in net income
Interest rate swaps hedging assets	$	(148	)	$	53		Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets		—			4		Net investment gains (losses)		—	Net investment gains (losses)
Interest rate swaps hedging liabilities		—			(1	)	Interest expense		—	Net investment gains (losses)
Foreign currency swaps		1			—		Net investment income		—	Net investment gains (losses)
Forward bond purchase commitments		(11	)		—		Net investment gains (losses)		—	Net investment gains (losses)

Total	$	(158	)	$	56			$	—

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The change for these designated derivatives reported in accumulated other comprehensive income (loss) was as follows as of and for the periods indicated:


	Three months ended March 31,
(Amounts in millions)	2025			2024

Beginning balance	$	492		$	1,010
Current period increases (decreases) in fair value (1)		74			(125	)
Reclassification to net (income) (1)		(31	)		(36	)

Ending balance	$	535		$	849

(1)	During the three months ended March 31, 2025 and 2024, current period increases (decreases) in fair value were net of deferred taxes of $(21) million and $33 million, respectively, and amounts reclassified to net (income) were net of deferred taxes of $18 million and $20 million, respectively.

The total balance in accumulated other comprehensive income (loss) from derivatives designated as cash flow hedges of $535 million, net of taxes, recorded in stockholders’ equity as of March 31, 2025 is expected to be reclassified to net income (loss) in the future, concurrently with and primarily offsetting changes in interest expense and interest income on floating rate instruments and interest income on future fixed rate bond purchases. Of this amount, $122 million, net of taxes, is expected to be reclassified to net income (loss) in the next 12 months. Actual amounts may vary from this amount as a result of market conditions. All forecasted transactions associated with qualifying cash flow hedges are expected to occur by 2057. During the three months ended March 31, 2025 and 2024, we reclassified $1 million and $2 million, respectively, to net income in connection with forecasted transactions that were no longer considered reasonably possible of occurring.

Derivatives Not Designated As Hedges

We enter into certain non-qualifying derivative instruments such as equity index options and financial futures to mitigate the risks associated with liabilities that have guaranteed minimum benefits, fixed indexed annuities and indexed universal life. Our fixed indexed annuity and indexed universal life insurance products with certain features are required to be bifurcated as embedded derivatives. Additionally, we have forward bond purchase commitments to hedge against the variability in the anticipated cash flows required to purchase future fixed rate bonds, as well as foreign currency forward contracts to mitigate currency risk associated with anticipated future foreign currency denominated cash flows.

The following table provides the pre-tax gain (loss) recognized in net income for the effects of derivatives not designated as hedges for the periods indicated:


	Three months ended March 31,						Classification of gain (loss) recognized in net income
(Amounts in millions)	2025			2024			Classification of gain (loss) recognized in net income
Equity index options	$	(4	)	$	5		Net investment gains (losses)
Financial futures		33			(64	)	Changes in fair value of market risk benefits and associated hedges
Forward bond purchase commitments		4			(4	)	Net investment gains (losses)
Fixed indexed annuity embedded derivatives		4			(8	)	Net investment gains (losses)
Indexed universal life embedded derivatives		1			4		Net investment gains (losses)

Total derivatives not designated as hedges	$	38		$	(67	)

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Derivative Counterparty Credit Risk

Most of our derivative arrangements with counterparties require the posting of collateral upon meeting certain net exposure thresholds. The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated:


	March 31, 2025									December 31, 2024
(Amounts in millions)	Derivative assets (1)			Derivative liabilities (1)			Net derivatives			Derivative assets (1)			Derivative liabilities (1)			Net derivatives

Amounts presented in the balance sheet:
Gross amounts recognized	$	67		$	735		$	(668	)	$	56		$	821		$	(765	)
Gross amounts offset in the balance sheet		—			—			—			—			—			—

Net amounts presented in the balance sheet		67			735			(668	)		56			821			(765	)
Gross amounts not offset in the balance sheet:
Financial instruments (2)		(36	)		(36	)		—			(31	)		(31	)		—
Collateral received		(17	)		—			(17	)		(11	)		—			(11	)
Collateral pledged		—			(1,595	)		1,595			—			(1,592	)		1,592
Over collateralization		1			896			(895	)		1			802			(801	)

Net amount	$	15		$	—		$	15		$	15		$	—		$	15

(1)	Does not include amounts related to embedded derivatives as of March 31, 2025 and December 31, 2024.

(2)	Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty.

(6) Fair Value of Financial Instruments

Recurring Fair Value Measurements

We have fixed maturity securities, equity securities, limited partnerships, derivatives, short-term investments, embedded derivatives, separate account assets, market risk benefits (“MRBs”) and certain other financial instruments, which are carried at fair value. Below is a description of the valuation techniques and inputs used to determine fair value by class of instrument.

Fixed maturity securities, equity securities and short-term investments

The fair value of fixed maturity securities, equity securities and short-term investments is estimated primarily based on information derived from third-party pricing services (“pricing services”), broker quotes and/or internal models, which may use a market approach, income approach or a combination of the market and income approach depending on the type of instrument and availability of information. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. In certain cases where market information is not available for a specific security but is available for similar securities, that security is valued using market information for similar securities, which is also a market approach. When market information is not available for a specific security (or similar securities) or is available but such information is less relevant or reliable, an income approach or a combination of a market and income approach is utilized. For

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securities with optionality, such as call or prepayment features (including mortgage-backed or asset-backed securities), an income approach may be used. These valuation techniques may change from period to period, based on the relevance and availability of market data.

Further, while we consider the valuations provided by pricing services and broker quotes to be of high quality, management determines the fair value of our investment securities after considering all relevant and available information.

In general, we first obtain valuations from pricing services. If prices are unavailable for public securities, we obtain broker quotes. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for similar securities are not readily observable and these securities are not typically valued by pricing services.

Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs, which would result in the valuation being classified as Level 3. Broker quotes may be utilized when pricing services data is not available and are typically classified as Level 3 due to the use of significant unobservable inputs.

For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placements with the public bonds, price caps, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs, leading to a classification of Level 2. We classify private securities without an external rating or public bond spread as Level 3. In general, a significant increase (decrease) in credit spreads would have resulted in a significant decrease (increase) in the fair value for our fixed maturity securities as of March 31, 2025.

For remaining securities priced using internal models, we determine fair value using an income approach. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3.

Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing and/or rating, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from pricing services to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3.

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A summary of the inputs used for our financial instruments carried at fair value based on the level in which instruments are classified is included below. We have combined certain classes of instruments together as the nature of the inputs is similar.

Level 1 measurements

Equity securities.

The primary inputs to the valuation of exchange-traded equity securities include quoted prices for the identical instrument.

Separate account assets.

The fair value of separate account assets is based on the quoted prices of the underlying fund investments and, therefore, represents Level 1 pricing.

Level 2 measurements

Fixed maturity securities

•

Third-party pricing services:

In estimating the fair value of fixed maturity securities, 88% of our portfolio was priced using third-party pricing services as of March 31, 2025. These pricing services utilize industry-standard valuation techniques that include market-based approaches, income-based approaches, a combination of market-based and income-based approaches or other proprietary, internally generated models as part of the valuation processes. These third-party pricing vendors maximize the use of publicly available data inputs to generate valuations for each asset class. Priority and type of inputs used may change frequently as certain inputs may be more direct drivers of valuation at the time of pricing. Examples of significant inputs incorporated by pricing services may include sector and issuer spreads, seasoning, capital structure, security optionality, collateral data, prepayment assumptions, default assumptions, delinquencies, debt covenants, benchmark yields, trade data, dealer quotes, credit ratings, maturity and weighted-average life. We conduct regular meetings with our pricing services for the purpose of understanding the methodologies, techniques and inputs used by the third-party pricing providers.

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The following table presents a summary of the significant inputs used by our pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of March 31, 2025:


(Amounts in millions)	Fair value		Primary methodologies	Significant inputs
U.S. government, agencies and government-sponsored enterprises	$	3,594	Price quotes from trading desk, broker feeds	Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread

State and political subdivisions	$	2,169	Multi-dimensional attribute-based modeling systems, exchanges for the bond or comparable liquid bonds	Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes

Non-U.S. government	$	1,014	Price quotes from market makers, spread priced to benchmark curves, matrix pricing	Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources

U.S. corporate	$	23,726	Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based models	Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports

Non-U.S. corporate	$	5,709	Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers	Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources

Residential mortgage-backed	$	909	OAS-based models, single factor binomial models, internally priced, pay-up to the to be announced price	Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports

Commercial mortgage-backed	$	1,307	Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model	Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swap curves, TRACE reports

Other asset-backed	$	1,973	Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers	Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports

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•

Internal models:

A portion of our U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities was $1,564 million and $827 million, respectively, as of March 31, 2025. Internally modeled securities are primarily private fixed maturity securities where we use market observable inputs such as an interest rate yield curve, published credit spreads for similar securities based on the external ratings of the instrument and related industry sector of the issuer. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps and liquidity premiums are established using inputs from market participants.

Equity securities.

The primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active.

Short-term investments.

The fair value of short-term investments classified as Level 2 is determined after considering prices obtained by pricing services.

Level 3 measurements

Fixed maturity securities

•

Broker quotes:

A portion of our non-U.S. government, U.S. corporate, non-U.S. corporate, residential mortgage-backed, commercial mortgage-backed and other asset-backed securities are valued using broker quotes. Broker quotes are obtained from third-party providers that have current market knowledge to provide a reasonable price for securities not routinely priced by pricing services. Brokers utilized for valuation of assets are reviewed annually. The fair value of our Level 3 fixed maturity securities priced by broker quotes was $304 million as of March 31, 2025.

•

Internal models:

A portion of our U.S. corporate, non-U.S. corporate, residential mortgage-backed and other asset-backed securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain private fixed maturity securities are valued using an internal model using market observable inputs such as the interest rate yield curve, as well as published credit spreads for similar securities, which can include significant unobservable inputs. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps are established using inputs from market participants. For structured securities, the primary inputs to the valuation include quoted prices for similar assets in markets that are not active, contractual cash flows, weighted-average coupon, weighted-average maturity, issuer rating, structure of the security, expected prepayment speeds and volumes, collateral type, current and forecasted loss severity, average delinquency rates, vintage of the loans, geographic region, debt service coverage ratios, payment priority with the tranche, benchmark yields and credit spreads. The fair value of our Level 3 fixed maturity securities priced using internal models was $2,572 million as of March 31, 2025.

Equity securities.

The primary inputs to the valuation include broker quotes where the underlying inputs are unobservable and for internal models, structure of the security and issuer rating.

Limited partnerships.

The fair value of limited partnerships classified as Level 3 is determined based on third-party valuation sources that utilize unobservable inputs, such as a reference to public market or private transactions, valuations for comparable companies or assets, discounted cash flows and/or recent transactions.

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Short-term investments.

The primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain securities are valued using an internal model using market observable inputs such as the interest rate yield curve, as well as published credit spreads for similar securities, which include significant unobservable inputs.

Net asset value

Limited partnerships.

Limited partnerships are valued based on comparable market transactions, discounted future cash flows, quoted market prices and/or estimates using the most recent data available for the underlying instrument. We utilize the net asset value (“NAV”) from the underlying fund statements as a practical expedient for fair value.

Derivatives

We consider counterparty collateral arrangements and rights of set-off when evaluating our net credit risk exposure to our derivative counterparties. Accordingly, we are permitted to include consideration of these arrangements when determining whether any incremental adjustment should be made for both the counterparty’s and our non-performance risk in measuring fair value for our derivative instruments. As a result of these counterparty arrangements, we determined that any adjustment for credit risk would not be material and we have not recorded any incremental adjustment for our non-performance risk or the non-performance risk of the derivative counterparties for our derivative assets or liabilities.

Interest rate swaps.

The valuation of interest rate swaps is determined using an income approach. The primary input into the valuation represents the forward interest rate swap curve, which is generally considered an observable input, and results in the derivative being classified as Level 2. For certain interest rate swaps, the inputs into the valuation also include the total returns of certain bonds that would primarily be considered an observable input and result in the derivative being classified as Level 2.

Foreign currency swaps.

The valuation of foreign currency swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and foreign currency exchange rates, both of which are considered observable inputs, and results in the derivative being classified as Level 2.

Equity index options.

We have equity index options associated with various equity indices. The valuation of equity index options is determined using an income approach. The primary inputs into the valuation represent forward interest rates, equity index volatility, equity index and time value component associated with the optionality in the derivative. The equity index volatility surface is determined based on market information that is not readily observable and is developed based upon inputs received from several third-party sources. Accordingly, these options are classified as Level 3. As of March 31, 2025, a significant increase (decrease) in the equity index volatility discussed above would have resulted in a significantly higher (lower) fair value measurement.

Financial futures.

The fair value of financial futures is based on the closing exchange prices. Accordingly, these financial futures are classified as Level 1. The period end valuation is zero as a result of settling the margins on these contracts on a daily basis.

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Forward bond purchase commitments.

The valuation of forward bond purchase commitments is determined using an income approach. The primary inputs into the valuation represent current bond prices and interest rates, as well as an estimate of the cost of counterparty financing to acquire and carry the bond during the forward period. The estimated cost of counterparty financing is not readily observable and is developed based upon an assumed spread; accordingly, these derivatives are classified as Level 3.

Foreign currency forward contracts.

The valuation of foreign currency forward contracts is determined using an income approach. The primary inputs into the valuation represent the forward foreign currency exchange rates, which are generally considered observable inputs and results in the derivative being classified as Level 2.

Fixed indexed annuity and indexed universal life embedded derivatives.

We have fixed indexed annuity and indexed universal life insurance products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance risk and risk margins. As a result of our assumptions for expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As expected future interest credited decreases, the value of our embedded derivative liability will decrease. As of March 31, 2025, a significant change in the unobservable inputs discussed above would have resulted in a significantly lower or higher fair value measurement.

Market risk benefits

MRBs are contracts or contract features that provide protection to the contractholder from and expose us to other-than-nominal capital market risk. MRBs include certain contract features on fixed and variable annuity products that provide minimum guarantees, in addition to the policyholder account balance, such as guaranteed minimum death benefits (“GMDBs”), guaranteed minimum withdrawal benefits (“GMWBs”) and guaranteed payout annuity floor benefits (“GPAFs”). MRBs are measured at fair value using an income-based valuation model based on current net amounts at risk, market data, experience and other factors.

MRB assets and liabilities for minimum guarantees are valued and presented separately from the related separate account and policyholder account balances.

Fixed indexed annuities

The valuation of fixed indexed annuities MRBs, which includes GMWB features, is based on an income approach that incorporates inputs such as policyholder behavior (GMWB utilization, lapses and mortality), equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance risk and risk margins. Our discount rate used to determine fair value of our fixed indexed annuities MRBs includes market credit spreads above U.S. Treasury rates to reflect an adjustment for the non-performance risk of the fixed indexed annuities MRBs. We determine fair value using an internal model based on the various inputs noted above. As a result of our assumptions for GMWB utilization, expected future interest credited and non-performance risk being considered significant unobservable inputs, we classify these instruments as Level 3. As expected future interest credited decreases or GMWB utilization increases, the

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value of our fixed indexed annuities MRB liability will increase. Any increase in non-performance risk would increase the discount rate and would decrease the fair value of the liability. As of March 31, 2025, a significant change in the unobservable inputs discussed above would have resulted in a significantly lower or higher fair value measurement. Refer to note 11 for additional details related to the changes in the fair value measurement of fixed indexed annuities MRBs as of March 31, 2025 and December 31, 2024.

Variable annuities

The valuation of our variable annuities MRBs, which includes GMWB, GMDB and GPAF features, is based on an income approach that incorporates inputs such as policyholder behavior (GMWB utilization, lapses and mortality), equity index volatility, interest rates, equity index and fund correlation and an adjustment to the discount rate to incorporate non-performance risk and risk margins. Our discount rate used to determine fair value of our variable annuities MRBs includes market credit spreads above U.S. Treasury rates to reflect an adjustment for the non-performance risk of the variable annuities MRBs. We determine fair value using an internal model based on the various inputs noted above. We classify the variable annuities MRBs valuation as Level 3 based on having significant unobservable inputs, with policyholder behavior (GMWB utilization and lapses), equity index volatility and non-performance risk being considered the more significant unobservable inputs. As equity index volatility increases, the fair value of the variable annuities MRBs will increase. An increase in our lapse assumption would decrease the fair value of the variable annuities MRBs, whereas an increase in our GMWB utilization rate would increase the fair value. Any increase in non-performance risk would increase the discount rate and would decrease the fair value of the liability. As of March 31, 2025, a significant change in the unobservable inputs discussed above would have resulted in a significantly lower or higher fair value measurement. Refer to note 11 for additional details related to the changes in the fair value measurement of variable annuities MRBs as of March 31, 2025 and December 31, 2024.

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The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:


	March 31, 2025
(Amounts in millions)	Total		Level 1		Level 2		Level 3		NAV (1)

Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3,594	$	—	$	3,594	$	—	$	—
State and political subdivisions		2,169		—		2,169		—		—
Non-U.S. government		1,029		—		1,014		15		—
U.S. corporate:
Utilities		4,376		—		3,514		862		—
Energy		2,412		—		2,391		21		—
Finance and insurance		6,955		—		6,288		667		—
Consumer—non-cyclical		4,458		—		4,409		49		—
Technology and communications		2,824		—		2,807		17		—
Industrial		1,055		—		1,040		15		—
Capital goods		2,304		—		2,260		44		—
Consumer—cyclical		1,499		—		1,392		107		—
Transportation		1,081		—		1,052		29		—
Other		265		—		137		128		—

Total U.S. corporate		27,229		—		25,290		1,939		—

Non-U.S. corporate:
Utilities		688		—		403		285		—
Energy		1,004		—		889		115		—
Finance and insurance		1,717		—		1,696		21		—
Consumer—non-cyclical		549		—		518		31		—
Technology and communications		722		—		705		17		—
Industrial		790		—		681		109		—
Capital goods		620		—		573		47		—
Consumer—cyclical		233		—		233		—		—
Transportation		446		—		411		35		—
Other		491		—		427		64		—

Total non-U.S. corporate		7,260		—		6,536		724		—

Residential mortgage-backed		911		—		909		2		—
Commercial mortgage-backed		1,318		—		1,307		11		—
Other asset-backed		2,158		—		1,973		185		—

Total fixed maturity securities		45,668		—		42,792		2,876		—

Equity securities		496		423		30		43		—
Limited partnerships		2,553		—		—		18		2,535
Other invested assets:
Derivative assets:
Interest rate swaps		23		—		23		—		—
Foreign currency swaps		12		—		12		—		—
Equity index options		12		—		—		12		—
Forward bond purchase commitments		19		—		—		19		—
Foreign currency forward contracts		1		—		1		—		—

Total derivative assets		67		—		36		31		—

Short-term investments		4		—		4		—		—

Total other invested assets		71		—		40		31		—

Separate account assets		4,192		4,192		—		—		—

Total assets	$	52,980	$	4,615	$	42,862	$	2,968	$	2,535

(1)	Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.

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	December 31, 2024
(Amounts in millions)	Total		Level 1		Level 2		Level 3		NAV (1)

Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3,493	$	—	$	3,493	$	—	$	—
State and political subdivisions		2,149		—		2,149		—		—
Non-U.S. government		909		—		896		13		—
U.S. corporate:
Utilities		4,282		—		3,437		845		—
Energy		2,312		—		2,291		21		—
Finance and insurance		6,911		—		6,223		688		—
Consumer—non-cyclical		4,387		—		4,324		63		—
Technology and communications		2,723		—		2,711		12		—
Industrial		1,072		—		1,057		15		—
Capital goods		2,243		—		2,200		43		—
Consumer—cyclical		1,497		—		1,398		99		—
Transportation		1,074		—		1,043		31		—
Other		270		—		137		133		—

Total U.S. corporate		26,771		—		24,821		1,950		—

Non-U.S. corporate:
Utilities		693		—		411		282		—
Energy		1,006		—		890		116		—
Finance and insurance		1,774		—		1,753		21		—
Consumer—non-cyclical		556		—		517		39		—
Technology and communications		726		—		709		17		—
Industrial		766		—		699		67		—
Capital goods		591		—		544		47		—
Consumer—cyclical		230		—		230		—		—
Transportation		436		—		401		35		—
Other		549		—		498		51		—

Total non-U.S. corporate		7,327		—		6,652		675		—

Residential mortgage-backed		811		—		809		2		—
Commercial mortgage-backed		1,301		—		1,290		11		—
Other asset-backed		2,141		—		1,999		142		—

Total fixed maturity securities		44,902		—		42,109		2,793		—

Equity securities		515		401		70		44		—
Limited partnerships		2,460		—		—		19		2,441
Other invested assets:
Derivative assets:
Interest rate swaps		18		—		18		—		—
Foreign currency swaps		13		—		13		—		—
Equity index options		19		—		—		19		—
Forward bond purchase commitments		6		—		—		6		—

Total derivative assets		56		—		31		25		—

Short-term investments		4		—		4		—		—

Total other invested assets		60		—		35		25		—

Separate account assets		4,438		4,438		—		—		—

Total assets	$	52,375	$	4,839	$	42,214	$	2,881	$	2,441

(1)	Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.

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The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of and for the dates indicated:


	Beginning balance as of January 1, 2025		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of March 31, 2025		Total gains (losses) attributable to assets still held
(Amounts in millions)	Beginning balance as of January 1, 2025		Included in net income			Included in OCI			Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of March 31, 2025		Included in net income			Included in OCI
Fixed maturity securities:
Non-U.S. government	$	13	$	—		$	1		$	1	$	—		$	—	$	—		$	—	$	—		$	15	$	—		$	1
U.S. corporate:
Utilities		845		—			4			16		—			—		(3	)		—		—			862		—			4
Energy		21		—			—			—		—			—		—			—		—			21		—			—
Finance and insurance		688		—			9			25		—			—		(23	)		—		(32	)		667		—			8
Consumer—non-cyclical		63		—			1			—		—			—		(15	)		—		—			49		—			1
Technology and communications		12		—			—			—		—			—		—			5		—			17		—			—
Industrial		15		—			—			—		—			—		—			—		—			15		—			—
Capital goods		43		—			1			—		—			—		—			—		—			44		—			1
Consumer—cyclical		99		—			2			8		—			—		(2	)		—		—			107		—			2
Transportation		31		—			—			—		—			—		(2	)		—		—			29		—			—
Other		133		—			—			—		—			—		(5	)		—		—			128		—			—

Total U.S. corporate		1,950		—			17			49		—			—		(50	)		5		(32	)		1,939		—			16

Non-U.S. corporate:
Utilities		282		—			3			—		—			—		—			—		—			285		—			3
Energy		116		—			(1	)		—		—			—		—			—		—			115		—			(1	)
Finance and insurance		21		—			—			—		—			—		—			—		—			21		—			—
Consumer—non-cyclical		39		—			—			—		—			—		(8	)		—		—			31		—			—
Technology and communications		17		—			—			—		—			—		—			—		—			17		—			—
Industrial		67		—			2			—		—			—		—			40		—			109		—			2
Capital goods		47		—			—			—		—			—		—			—		—			47		—			—
Transportation		35		—			—			—		—			—		—			—		—			35		—			—
Other		51		—			1			12		—			—		—			—		—			64		—			1

Total non-U.S. corporate		675		—			5			12		—			—		(8	)		40		—			724		—			5

Residential mortgage-backed		2		—			—			—		—			—		—			—		—			2		—			—
Commercial mortgage-backed		11		—			—			—		—			—		—			—		—			11		—			—
Other asset-backed		142		—			—			48		—			—		(5	)		—		—			185		—			—

Total fixed maturity securities		2,793		—			23			110		—			—		(63	)		45		(32	)		2,876		—			22

Equity securities		44		—			—			—		(1	)		—		—			—		—			43		—			—
Limited partnerships		19		(1	)		—			—		—			—		—			—		—			18		(1	)		—
Other invested assets:
Derivative assets:
Equity index options		19		(4	)		—			3		—			—		(6	)		—		—			12		(4	)		—
Forward bond purchase commitments		6		—			13			—		—			—		—			—		—			19		—			13

Total derivative assets		25		(4	)		13			3		—			—		(6	)		—		—			31		(4	)		13

Total other invested assets		25		(4	)		13			3		—			—		(6	)		—		—			31		(4	)		13

Total Level 3 assets	$	2,881	$	(5	)	$	36		$	113	$	(1	)	$	—	$	(69	)	$	45	$	(32	)	$	2,968	$	(5	)	$	35

(1)

The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.

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	Beginning balance as of January 1, 2024		Total realized and unrealized gains (losses)						Purchases		Sales		Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of March 31, 2024		Total gains (losses) attributable to assets still held
(Amounts in millions)	Beginning balance as of January 1, 2024		Included in net income			Included in OCI			Purchases		Sales		Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of March 31, 2024		Included in net income			Included in OCI
Fixed maturity securities:
State and political subdivisions	$	60	$	1		$	4		$	—	$	—	$	—	$	—		$	—	$	—		$	65	$	1		$	4
U.S. corporate:
Utilities		881		—			(20	)		32		—		—		(26	)		—		—			867		—			(20	)
Energy		60		—			—			—		—		—		—			—		—			60		—			—
Finance and insurance		717		—			(6	)		—		—		—		—			19		—			730		—			(6	)
Consumer—non-cyclical		69		—			—			—		—		—		(5	)		—		—			64		—			—
Technology and communications		12		—			—			—		—		—		—			—		—			12		—			—
Industrial		23		—			—			—		—		—		(8	)		—		—			15		—			—
Capital goods		35		—			(1	)		—		—		—		—			—		—			34		—			(1	)
Consumer—cyclical		122		—			(3	)		—		—		—		(1	)		—		—			118		—			(3	)
Transportation		22		—			—			—		—		—		(1	)		—		—			21		—			—
Other		149		—			(2	)		—		—		—		(4	)		—		—			143		—			(2	)

Total U.S. corporate		2,090		—			(32	)		32		—		—		(45	)		19		—			2,064		—			(32	)

Non-U.S. corporate:
Utilities		269		—			(4	)		10		—		—		(15	)		—		—			260		—			(4	)
Energy		131		—			(1	)		—		—		—		—			—		—			130		—			(1	)
Finance and insurance		134		2			(4	)		—		—		—		—			—		—			132		2			(4	)
Consumer—non-cyclical		81		—			(1	)		—		—		—		(3	)		—		—			77		—			—
Technology and communications		24		—			—			—		—		—		—			—		—			24		—			—
Industrial		63		—			(1	)		—		—		—		(1	)		—		—			61		—			(1	)
Capital goods		53		—			—			—		—		—		(20	)		—		—			33		—			—
Consumer—cyclical		1		—			—			—		—		—		—			—		—			1		—			—
Transportation		22		—			—			—		—		—		—			—		—			22		—			—
Other		52		—			(1	)		—		—		—		—			—		—			51		—			(1	)

Total non-U.S. corporate		830		2			(12	)		10		—		—		(39	)		—		—			791		2			(11	)

Residential mortgage-backed		3		—			—			—		—		—		—			—		—			3		—			—
Commercial mortgage-backed		11		—			—			—		—		—		—			—		—			11		—			—
Other asset-backed		102		—			—			15		—		—		(2	)		—		(7	)		108		—			(1	)

Total fixed maturity securities		3,096		3			(40	)		57		—		—		(86	)		19		(7	)		3,042		3			(40	)

Equity securities		32		—			—			—		—		—		—			—		—			32		—			—
Limited partnerships		20		(1	)		—			—		—		—		—			—		—			19		(1	)		—
Other invested assets:
Derivative assets:
Equity index options		15		5			—			4		—		—		(4	)		—		—			20		4			—
Forward bond purchase commitments		51		—			(10	)		—		—		—		—			—		—			41		—			(10	)

Total derivative assets		66		5			(10	)		4		—		—		(4	)		—		—			61		4			(10	)
Short-term investments		7		—			—			—		—		—		(7	)		—		—			—		—			—

Total other invested assets		73		5			(10	)		4		—		—		(11	)		—		—			61		4			(10	)

Total Level 3 assets	$	3,221	$	7		$	(50	)	$	61	$	—	$	—	$	(97	)	$	19	$	(7	)	$	3,154	$	6		$	(50	)

(1)

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the gains and losses included in net income from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the three months ended March 31:


(Amounts in millions)	2025			2024
Total realized and unrealized gains (losses) included in net income:
Net investment incom e	$	—		$	3
Net investment gains (losse s)		(5	)		4

Tota l	$	(5	)	$	7

Net gains (losses) included in net income attributable to assets still held:
Net investment incom e	$	—		$	3
Net investment gains (losse s)		(5	)		3

Tota l	$	(5	)	$	6

The amount presented for net investment income relates to fixed maturity securities and primarily represents amortization and accretion of premiums and discounts on certain fixed maturity securities.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of March 31, 2025:


(Amounts in millions)	Fair value		Unobservable input	Range	Weighted-average (1)
Fixed maturity securities:
U.S. corporate:
Utilities	$	848	Credit spreads	61bps - 263bps	139bps
Energy		21	Credit spreads	130bps - 170bps	150bps
Finance and insurance		655	Credit spreads	14bps - 218bps	148bps
Consumer—non-cyclical		49	Credit spreads	74bps - 221bps	145bps
Technology and communications		17	Credit spreads	74bps - 192bps	116bps
Industrial		15	Credit spreads	100bps - 170bps	124bps
Capital goods		44	Credit spreads	133bps - 153bps	141bps
Consumer—cyclical		85	Credit s pr eads	90bps - 144bps	129bps
Transportation		29	Credit spreads	50bps - 157bps	133bps
Other		82	Credit s pre ads	86bps - 159bps	103bps

Total U.S. corporate	$	1,845	Credit spreads	14bps - 263bps	140bps

Non-U.S. corporate:
Utilities	$	252	Credit spreads	97bps - 225bps	130bps
Energy		98	Credit spreads	90bps - 150bps	120bps
Finance and insurance		21	Credit spreads	119bps - 150bps	136bps
Consumer—non-cyclical		29	Credit spreads	100bps - 150bps	110bps
Technology and communications		17	Credit spreads	90bps - 133bps	111bps
Industrial		108	Credit spreads	103bps - 189bps	130bps
Capital goods		41	Credit spreads	133bps - 221bps	160bps
Transportation		35	Credit spreads	100bps - 151bps	127bps
Other		52	Credit spreads	61bps - 133bps	113bps

Total non-U.S. corporate	$	653	Credit spreads	61bps - 225bps	128bps

Derivative assets:
Equity index options	$	12	Equity index volatility	6% - 51%	27%
Forward bond purchase commitments	$	19	Counterparty financing spreads	22bps - 53bps	32bps

Other assets (2)	$	116	Lapse rate	2% - 9%	5%
			Non-performance risk (counterparty credit risk)	42bps - 83bps	69bps
			Equity index volatility	15% - 30%	23%

(1)	Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities, notional for derivative assets and the policyholder account balances associated with the instrument for the net reinsured portion of our variable annuity MRBs.

(2)	Represents the net reinsured portion of our variable annuity MRBs.

The assets included in the table above are valued using internal models for our fixed maturity securities and discounted cash flows for derivative and other assets. Certain classes of instruments classified as Level 3 are excluded above as a result of not being material or due to limitations in being able to obtain the underlying inputs used by certain third-party sources, such as broker quotes, used as an input in determining fair value.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables set forth our liabilities by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:


	March 31, 2025
(Amounts in millions)	Total		Level 1		Level 2		Level 3

Liabilities
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	145	$	—	$	—	$	145
Indexed universal life embedded derivatives		13		—		—		13

Total policyholder account balances		158		—		—		158

Derivative liabilities:
Interest rate swaps		690		—		690		—
Foreign currency swaps		1		—		1		—
Forward bond purchase commitments		44		—		—		44

Total derivative liabilities		735		—		691		44

Total liabilities	$	893	$	—	$	691	$	202


	December 31, 2024
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	155	$	—	$	—	$	155
Indexed universal life embedded derivatives		15		—		—		15

Total policyholder account balances		170		—		—		170

Derivative liabilities:
Interest rate swaps		749		—		749		—
Foreign currency swaps		1		—		1		—
Forward bond purchase commitments		71		—		—		71

Total derivative liabilities		821		—		750		71

Total liabilities	$	991	$	—	$	750	$	241

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of and for the dates indicated:


	Beginning balance as of January 1, 2025		Total realized and unrealized (gains) losses																				Ending balance as of March 31, 2025		Total (gains) losses attributable to liabilities still held
(Amounts in millions)	Beginning balance as of January 1, 2025		Included in net (income)			Included in OCI			Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3			Ending balance as of March 31, 2025		Included in net (income)			Included in OCI

Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	155	$	(4	)	$	—		$	—	$	—	$	—	$	(5	)	$	—	$	(1	)	$	145	$	(4	)	$	—
Indexed universal life embedded derivatives		15		(1	)		—			—		—		—		(1	)		—		—			13		(1	)		—

Total policyholder account balances		170		(5	)		—			—		—		—		(6	)		—		(1	)		158		(5	)		—

Derivative liabilities:
Forward bond purchase commitments		71		(4	)		(23	)		—		—		—		—			—		—			44		(4	)		(22	)

Total derivative liabilities		71		(4	)		(23	)		—		—		—		—			—		—			44		(4	)		(22	)

Total Level 3 liabilities	$	241	$	(9	)	$	(23	)	$	—	$	—	$	—	$	(6	)	$	—	$	(1	)	$	202	$	(9	)	$	(22	)


	Beginning balance as of January 1, 2024		Total realized and unrealized (gains) losses																			Ending balance		Total (gains) losses attributable to liabilities still held
(Amounts in millions)	Beginning balance as of January 1, 2024		Included in net (income)			Included in OCI		Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3			as of March 31, 2024		Included in net (income)			Included in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	165	$	8		$	—	$	—	$	—	$	—	$	(9	)	$	—	$	(1	)	$	163	$	8		$	—
Indexed universal life embedded derivatives		15		(4	)		—		—		—		4		—			—		—			15		(4	)		—

Total policyholder account balances		180		4			—		—		—		4		(9	)		—		(1	)		178		4			—

Derivative liabilities:
Forward bond purchase commitments		9		4			—		—		—		—		—			—		—			13		4			—

Total derivative liabilities		9		4			—		—		—		—		—			—		—			13		4			—

Total Level 3 liabilities	$	189	$	8		$	—	$	—	$	—	$	4	$	(9	)	$	—	$	(1	)	$	191	$	8		$	—

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the gains and losses included in net (income) from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the three months ended March 31:


(Amounts in millions)	2025			2024
Total realized and unrealized (gains) losses included in net (income):
Net investment incom e	$	—		$	—
Net investment (gains) losse s		(9	)		8

Tota l	$	(9	)	$	8

Total (gains) losses included in net (income) attributable to liabilities still held:
Net investment incom e	$	—		$	—
Net investment (gains) losse s		(9	)		8

Tota l	$	(9	)	$	8

Purchases, sales, issuances and settlements represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases, sales and settlements of fixed maturity and equity securities and purchases, issuances and settlements of derivative instruments.

Issuances for fixed indexed annuity and indexed universal life embedded derivative liabilities represent the amount of the premium received that is attributed to the value of the embedded derivative. Settlements of embedded derivatives are characterized as the change in fair value upon exercising the embedded derivative instrument, effectively representing a settlement of the embedded derivative instrument. We have shown these changes in fair value separately based on the classification of this activity as effectively issuing and settling the embedded derivative instrument with all remaining changes in the fair value of these embedded derivative instruments being shown separately in the category labeled “included in net (income)” in the tables presented above.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents a summary of the significant unobservable inputs used for certain liability fair value measurements that are based on internal models and classified as Level 3 as of March 31, 2025:


(Amounts in millions)	Fair value		Unobservable input	Range		Weighted-average (1)
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	145	Expected future interest credited		1% - 4%		2%
Indexed universal life embedded derivatives	$	13	Expected future interest credited		2% - 13%		5%
Net market risk benefits (2) :
Fixed indexed annuities	$	56	GMWB utilization rate		— % - 83%		64%
			Non-performance risk (credit spreads)		42bps - 83bps		69bps
			Expected future interest credited		1% - 4%		2%
Variable annuities	$	413	Lapse rate		2% - 11%		5%
			GMWB utilization rate		60% - 90%		79%
			Non-performance risk (credit spreads)		42bps - 83bps		69bps
			Equity index volatility		15% - 30%		23%
Derivative liabilities:
Forward bond purchase commitments	$	44	Counterparty financing spreads		25bps - 54bps		44bps

(1)	Unobservable inputs weighted by the policyholder account balances associated with the instrument and notional for derivative liabilities.

(2)	Refer to note 11 for additional details related to MRBs.

The liabilities included in the table above are valued using an option budget method for our fixed indexed annuity and indexed universal life embedded derivative liabilities and discounted cash flows for our MRBs and derivative liabilities.

Assets and Liabilities Not Required to Be Carried at Fair Value

Assets and liabilities that are reflected in the accompanying condensed consolidated financial statements at fair value are not included in the following disclosure of fair value. Such items include cash and cash equivalents, short-term investments, investment securities, MRBs, separate accounts and derivative instruments. Apart from certain of our borrowings and certain marketable securities, few of the instruments are actively traded and their fair values must often be determined using internal models. The fair value estimates are made at a specific point in time, based upon available market information and judgments about the financial instruments, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated:


	March 31, 2025
	Notional amount			Carrying amount		Fair value
(Amounts in millions)	Notional amount			Carrying amount		Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans, net			(1)	$	6,320	$	5,947	$	—	$	7	$	5,940
Bank loan investments			(1)		532		540		—		—		540
Liabilities:
Long-term borrowings			(1)		1,519		1,434		—		1,434		—
Investment contracts			(1)		4,343		4,356		—		—		4,356
Commitments to fund investments:
Bank loan investments	$	137			—		—		—		—		—
Private placement investments		127			—		—		—		—		—
Commercial mortgage loans		11			—		—		—		—		—

(1)	These financial instruments do not have notional amounts.


	December 31, 2024
	Notional amount			Carrying amount		Fair value
(Amounts in millions)	Notional amount			Carrying amount		Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans, net			(1)	$	6,411	$	5,950	$	—	$	7	$	5,943
Bank loan investments			(1)		535		542		—		—		542
Liabilities:
Long-term borrowings			(1)		1,518		1,436		—		1,436		—
Investment contracts			(1)		4,498		4,499		—		—		4,499
Commitments to fund investments:
Bank loan investments	$	140			—		—		—		—		—
Private placement investments		263			—		—		—		—		—
Commercial mortgage loans		2			—		—		—		—		—

(1)	These financial instruments do not have notional amounts.

As of March 31, 2025 and December 31, 2024, we also had $26 million and $25 million, respectively, of real estate owned assets included in other invested assets in our condensed consolidated balance sheets, which are initially recorded at fair value less estimated selling costs (the carrying value) and are subsequently valued at the lower of the carrying value or current fair value less estimated selling costs. As of December 31, 2024, these properties were adjusted to fair value less estimated selling costs, which was less than the carrying value. These amounts represented the fair value as of March 31, 2025 and December 31, 2024. The fair value of the real estate owned assets is classified as Level 2.

Assets Measured Using Net Asset Value

Limited partnerships include partnership interests accounted for using NAV per share (or its equivalent) or fair value for those interests considered minor and partnership interests accounted for under the equity method of accounting for those interests exceeding the minor threshold. Our limited partnership interests accounted for

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

using NAV per share (or its equivalent) are generally not redeemable by the investees and generally cannot be sold without approval of the general partner. We receive distributions of income and proceeds from the liquidation of the underlying assets of the investees, which usually takes place in years

five

ten

of the typical contractual life of

ten

to 12 years.

The following table presents the carrying value of limited partnerships and commitments to fund as of the dates indicated:


	March 31, 2025				December 31, 2024
(Amounts in millions)	Carrying value		Commitments to fund		Carrying value		Commitments to fund
Limited partnerships accounted for at NAV:
Private equity funds (1)	$	2,280	$	1,412	$	2,190	$	1,434
Real estate funds (2)		129		68		128		74
Infrastructure funds (3)		126		174		123		178

Total limited partnerships accounted for at NAV		2,535		1,654		2,441		1,686

Limited partnerships accounted for at fair value		18		1		19		1
Limited partnerships accounted for under equity method of accounting		688		72		682		74

Total	$	3,241	$	1,727	$	3,142	$	1,761

(1)

This class employs various investment strategies such as leveraged buyout, growth equity, venture capital and mezzanine financing, generally investing in debt or equity positions directly in companies or assets of various sizes across diverse industries globally, primarily concentrated in North America.

(2)	This class invests in real estate in North America, Europe and Asia via direct property ownership, joint ventures, mortgages and investments in debt and equity instruments.

(3)	This class invests in the debt or equity of cash flow generating assets diversified across a variety of industries, including transportation, energy infrastructure, renewable power, social infrastructure, power generation, water, telecommunications and other regulated entities globally.

(7) Deferred Acquisition Costs

The following tables present the balances of and changes in deferred acquisition costs as of and for the periods indicated:


	March 31, 2025
(Amounts in millions)	Long- term care insurance			Life insurance			Fixed annuities			Variable annuities			Total
Balance as of January 1	$	823		$	812		$	37		$	83		$	1,755
Costs deferred		—			—			—			—			—
Amortization		(13	)		(31	)		(2	)		(3	)		(49	)

Balance as of March 31	$	810		$	781		$	35		$	80			1,706

Enact segment														23

Total deferred acquisition costs													$	1,729

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	December 31, 2024
(Amounts in millions)	Long- term care insurance			Life insurance			Fixed annuities			Variable annuities			Total
Balance as of January 1	$	879		$	941		$	45		$	98		$	1,963
Costs deferred		—			—			—			—			—
Amortization		(56	)		(129	)		(8	)		(15	)		(208	)

Balance as of December 31	$	823		$	812		$	37		$	83			1,755

Enact segment														24

Total deferred acquisition costs													$	1,779

(8) Future Policy Benefits

The following table sets forth our liability for future policy benefits as of the dates indicated:


(Amounts in millions)	March 31, 2025		December 31, 2024
Long-term care insurance	$	41,741	$	41,172
Life insurance		1,549		1,564
Fixed annuities		10,695		10,695

Total long-duration insurance contracts		53,985		53,431

Deferred profit liability		128		129
Cost of reinsurance		45		50

Total future policy benefits	$	54,158	$	53,610

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables present the balances of and changes in the liability for future policy benefits as of and for the periods indicated:


	March 31, 2025
(Dollar amounts in millions)	Long- term care insurance			Life insurance			Fixed annuities
Present value of expected net premiums:
Beginning balance as of January 1	$	17,315		$	3,690		$	—
Beginning balance, at original discount rate	$	17,625		$	3,640		$	—
Effect of changes in cash flow assumptions		9			—			—
Effect of actual variances from expected experience		(19	)		—			—

Adjusted beginning balance		17,615			3,640			—
Issuances		—			—			11
Interest accretion		224			50			—
Net premiums collected (1)		(456	)		(103	)		(11	)
Derecognition (lapses and withdrawals)		—			—			—
Other		—			—			—

Ending balance, at original discount rate		17,383			3,587			—
Effect of changes in discount rate assumptions		(116	)		84			—

Ending balance as of March 31	$	17,267		$	3,671		$	—

Present value of expected future policy benefits:
Beginning balance as of January 1	$	58,487		$	4,741		$	10,695
Beginning balance, at original discount rate	$	60,587		$	4,645		$	9,568
Effect of changes in cash flow assumptions		10			—			—
Effect of actual variances from expected experience		(33	)		17			(23	)

Adjusted beginning balance		60,564			4,662			9,545
Issuances		—			—			10
Interest accretion		822			62			156
Benefit payments		(920	)		(192	)		(235	)
Derecognition (lapses and withdrawals)		—			—			—
Other		—			—			5

Ending balance, at original discount rate		60,466			4,532			9,481
Effect of changes in discount rate assumptions		(1,458	)		134			1,214

Ending balance as of March 31	$	59,008		$	4,666		$	10,695

Net liability for future policy benefits, before flooring adjustments	$	41,741		$	995		$	10,695
Flooring adjustments (2)		—			554			—

Net liability for future policy benefits		41,741			1,549			10,695
Less: reinsurance recoverable		7,308			781			8,192

Net liability for future policy benefits, net of reinsurance recoverable	$	34,433		$	768		$	2,503

Weighted-average liability duration (years)		12.4			5.7			10.0

(1)	Represents the portion of gross premiums collected from policyholders that is used to fund expected benefit payments.

(2)

Flooring adjustments are necessary when a cohort’s present value of future net premiums exceeds the present value of future benefits. The flooring adjustment ensures that the liability for future policy benefits for each cohort is not less than zero. This adjustment is most prevalent in our term life insurance products due to their product design of a level premium period followed by annual premium rate increases.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	December 31, 2024
(Dollar amounts in millions)	Long- term care insurance			Life insurance			Fixed annuities
Present value of expected net premiums:
Beginning balance as of January 1	$	18,650		$	4,180		$	—
Beginning balance, at original discount rate	$	18,346		$	3,918		$	—
Effect of changes in cash flow assumptions		399			1			—
Effect of actual variances from expected experience		(174	)		(55	)		—

Adjusted beginning balance		18,571			3,864			—
Issuances		1			—			42
Interest accretion		915			212			—
Net premiums collected (1)		(1,862	)		(437	)		(42	)
Derecognition (lapses and withdrawals)		—			—			—
Other		—			1			—

Ending balance, at original discount rate		17,625			3,640			—
Effect of changes in discount rate assumptions		(310	)		50			—

Ending balance as of December 31	$	17,315		$	3,690		$	—

Present value of expected future policy benefits:
Beginning balance as of January 1	$	62,579		$	5,412		$	11,829
Beginning balance, at original discount rate	$	60,513		$	5,146		$	9,920
Effect of changes in cash flow assumptions		545			1			(1	)
Effect of actual variances from expected experience		106			(36	)		(39	)

Adjusted beginning balance		61,164			5,111			9,880
Issuances		1			—			35
Interest accretion		3,276			266			639
Benefit payments		(3,852	)		(731	)		(989	)
Derecognition (lapses and withdrawals)		—			—			—
Other		(2	)		(1	)		3

Ending balance, at original discount rate		60,587			4,645			9,568
Effect of changes in discount rate assumptions		(2,100	)		96			1,127

Ending balance as of December 31	$	58,487		$	4,741		$	10,695

Net liability for future policy benefits, before flooring adjustments	$	41,172		$	1,051		$	10,695
Flooring adjustments (2)		—			513			—

Net liability for future policy benefits		41,172			1,564			10,695
Less: reinsurance recoverable		7,233			783			8,177

Net liability for future policy benefits, net of reinsurance recoverable	$	33,939		$	781		$	2,518

Weighted-average liability duration (years)		12.5			5.6			10.1

(1)	Represents the portion of gross premiums collected from policyholders that is used to fund expected benefit payments.

(2)

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Long-term care insurance

For the three months ended March 31, 2025, the impact of actual variances from expected experience resulted in a decrease of $14 million in the liability for future policy benefits primarily due to favorable terminations reflecting seasonally high mortality.

In the fourth quarter of 2024, we completed our annual review of cash flow assumptions including benefit utilization, incidence, mortality and in-force rate actions, among others. The impact of changes in cash flow assumptions during the year ended December 31, 2024 resulted in an increase of $146 million in the liability for future policy benefits primarily related to unfavorable updates to healthy life and near-term benefit utilization assumptions to better align with recent experience, including cost of care inflation. Although we did not make significant changes to our multi-year in-force rate action plan, the increase to the liability for future policy benefits was partially offset by favorable assumption updates for future in-force rate action approvals given our current plans for rate increase filings and our recent experience regarding approvals and regulatory support. The increase to the liability for future policy benefits was also partially offset by favorable updates to our short-term incidence assumptions for incurred but not reported claims, reducing sufficiency held through a period of heightened uncertainty around incidence during and immediately following the coronavirus pandemic. The unfavorable impact of changes in cash flow assumptions was partially offset in net income as a portion of the unfavorable cash flow assumption updates were related to fully reinsured blocks of business. The impact of actual variances from expected experience during the year ended December 31, 2024 resulted in an increase of $280 million in the liability for future policy benefits primarily due to lower terminations and higher claims.

Life insurance

For the three months ended March 31, 2025, the impact of actual variances from expected experience resulted in an increase of $17 million in the liability for future policy benefits primarily due to unfavorable impacts from seasonally high mortality.

There were no significant cash flow assumption changes in the fourth quarter of 2024. The impact of actual variances from expected experience during the year ended December 31, 2024 resulted in an increase of $19 million in the liability for future policy benefits primarily due to unfavorable mortality impacts.

Fixed annuities

For the three months ended March 31, 2025, the impact of actual variances from expected experience resulted in a decrease of $23 million in the liability for future policy benefits primarily due to favorable mortality.

There were no significant cash flow assumption changes in the fourth quarter of 2024. The impact of actual variances from expected experience during the year ended December 31, 2024 resulted in a decrease of $39 million in the liability for future policy benefits primarily due to favorable mortality.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides the weighted-average interest rates for the liability for future policy benefits as of the dates indicated:


	March 31, 2025			December 31, 2024
Long-term care insurance
Interest accretion (locked-in) rate		5.7	%		5.7	%
Current discount rate		5.6	%		5.7	%
Life insurance
Interest accretion (locked-in) rate		5.8	%		5.8	%
Current discount rate		5.2	%		5.3	%
Fixed annuities
Interest accretion (locked-in) rate		6.8	%		6.8	%
Current discount rate		5.5	%		5.6	%

See Note 2—Summary of Significant Accounting Policies included in the Notes to Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for additional information related to the discount rate used to measure the liability for future policy benefits.

The following table sets forth the amount of undiscounted and discounted expected future gross premiums and expected future benefit payments as of the dates indicated:


	March 31, 2025				December 31, 2024
(Amounts in millions)	Undiscounted		Discounted		Undiscounted		Discounted
Long-term care insurance
Expected future gross premiums	$	35,611	$	24,332	$	36,325	$	24,430
Expected future benefit payments	$	120,480	$	59,008	$	121,356	$	58,487
Life insurance
Expected future gross premiums	$	9,711	$	5,501	$	9,896	$	5,549
Expected future benefit payments	$	6,595	$	4,666	$	6,764	$	4,741
Fixed annuities
Expected future gross premiums	$	—	$	—	$	—	$	—
Expected future benefit payments	$	22,678	$	10,695	$	22,933	$	10,695

During the three months ended March 31, 2025, we recorded a charge of $2 million to net income for our life insurance products due to expected benefits exceeding expected gross premiums, resulting in net premium ratios capped at 100% for certain cohorts primarily due to higher claim severity.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table sets forth the amount of revenue and interest accretion (expense) recognized in net income related to our liability for future policy benefits for the periods indicated:


	Three months ended March 31,								Year ended
	2025				2024				December 31, 2024
(Amounts in millions)	Gross premiums		Interest accretion (1)		Gross premiums		Interest accretion (1)		Gross premiums		Interest accretion (1)
Long-term care insurance	$	619	$	598	$	630	$	589	$	2,520	$	2,361
Life insurance		155		12		169		15		647		54
Fixed annuities		—		156		—		162		—		639

Total	$	774	$	766	$	799	$	766	$	3,167	$	3,054

(1)	Amounts for interest accretion are included in benefits and other changes in policy reserves in the condensed consolidated statements of income.

(9) Policyholder Account Balances

The following table sets forth our liabilities for policyholder account balances as of the dates indicated:


(Amounts in millions)	March 31, 2025		December 31, 2024
Life insurance	$	7,226	$	7,235
Fixed annuities		3,655		3,789
Variable annuities		453		467
Fixed indexed annuity embedded derivatives (1)		145		155
Indexed universal life embedded derivatives (1)		13		15
Additional insurance liabilities (2)		2,942		2,920
Other		13		13

Total policyholder account balances	$	14,447	$	14,594

(1)	See note 5 for additional information.

(2)	Represents additional liabilities related to death or other insurance benefits that are recorded within policyholder account balances and are considered long-duration insurance contracts. See note 10 for additional information.

The contracts underlying the minimum guarantees, such as GMWBs and guaranteed annuitization benefits, are considered “in the money” if the present value of the contractholder’s benefits is greater than the account value, or commonly referred to as the net amount at risk. For GMWBs and guaranteed annuitization benefits, the only way the contractholder can monetize the excess of the benefits over the account value of the contract is through lifetime withdrawals or lifetime income payments after annuitization. For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current GMDB in excess of the current account balance at the balance sheet date.

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		Page
PART I—FINANCIAL INFORMATION

Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of March 31, 2025 (Unaudited) and December 31, 2024		3
	Condensed Consolidated Statements of Income for the three months ended March 31, 2025 and 2024 (Unaudited)		4
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024 (Unaudited)		5
	Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2025 and 2024 (Unaudited)		6
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (Unaudited)		7
	Notes to Condensed Consolidated Financial Statements (Unaudited)		8
	Note 1 — Business and Basis of Presentation		8
	Note 2 — Accounting Changes		9
	Note 3 — Earnings (Loss) Per Share		10
	Note 4 — Investments		11
	Note 5 — Derivative Instruments		25
	Note 6 — Fair Value of Financial Instruments		30
	Note 7 — Deferred Acquisition Costs		49
	Note 8 — Future Policy Benefits		50
	Note 9 — Policyholder Account Balances		55
	Note 10 — Additional Insurance Liabilities		58
	Note 11 — Market Risk Benefits		59
	Note 12 — Separate Accounts		60
	Note 13 — Liability for Policy and Contract Claims		61
	Note 14 — Income Taxes		62
	Note 15 — Segment Information		62
	Note 16 — Commitments and Contingencies		65
	Note 17 — Changes in Accumulated Other Comprehensive Income (Loss)		71

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		73

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		110

Item 4.	Controls and Procedures		110

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings		111

Item 1A.	Risk Factors		111

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		111

Item 5.	Other Information		111

Item 6.	Exhibits		112

Signatures			113