gnw-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 10-Q

___________________________


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

For the quarterly period ended September 30, 2025


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

For the transition period from ___________ to ___________

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 x No o

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 x No o

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.


Large accelerated filer	x	Accelerated filer	o

Non-accelerated filer	o	Smaller reporting company	o

		Emerging growth company	o

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. o

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

As of October 31, 2025, 399,380,567 shares of Common Stock, par value $0.001 per share, were outstanding.

TABLE OF CONTENTS


			Page
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements			3
Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024			3
Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2025 and 202 4 (Unaudited)			4
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 202 4 (Unaudited)			5
Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2025 and 202 4 (Unaudited)			6
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 202 4 (Unaudited)			8
Notes to Condensed Consolidated Financial Statements (Unaudited)			9
Note 1 — Business and Basis of Presentation			9
Note 2 — Accounting Changes			10
Note 3 — Earnings (Loss) Per Share			11
Note 4 — Investments			12
Note 5 — Derivative Instruments			28
Note 6 — Fair Value of Financial Instruments			34
Note 7 — Deferred Acquisition Costs			55
Note 8 — Future Policy Benefits			56
Note 9 — Policyholder Account Balances			61
Note 10 — Additional Insurance Liabilities			64
Note 11 — Market Risk Benefits			65
Note 12 — Separate Accounts			68
Note 13 — Liability for Policy and Contract Claims			68
Note 14 — Income Taxes			70
Note 15 — Segment Information			71
Note 16 — Commitments and Contingencies			74
Note 17 — Changes in Accumulated Other Comprehensive Income (Loss)			79
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			82
Item 3. Quantitative and Qualitative Disclosures About Market Risk			128
Item 4. Controls and Procedures			128
PART II—OTHER INFORMATION
Item 1. Legal Proceedings			130
Item 1A. Risk Factors			130
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			130
Item 5. Other Information			130
Item 6. Exhibits			131
Signatures			132

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

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




	September 30, 2025		December 31, 2024
	(Unaudited)
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value (amortized cost of $48,379 and $48,720, respectively, and allowance for credit losses of $28 and $10, respectively)	$	46,110	$	44,902
Equity securities, at fair value	546		515
Commercial mortgage loans	6,374		6,450
Less: Allowance for credit losses	(59)		(39)
Commercial mortgage loans, net	6,315		6,411
Policy loans	2,311		2,310
Limited partnerships	3,473		3,142
Other invested assets	658		648
Total investments	59,413		57,928
Cash, cash equivalents and restricted cash	2,036		2,048
Accrued investment income	589		607
Deferred acquisition costs	1,632		1,779
Intangible assets	184		197
Reinsurance recoverable	17,935		17,679
Less: Allowance for credit losses	(23)		(24)
Reinsurance recoverable, net	17,912		17,655
Other assets	421		444
Deferred tax asset	1,788		1,718
Market risk benefit assets	62		57
Separate account assets	4,449		4,438
Total assets	$	88,486	$	86,871
Liabilities and equity
Liabilities:
Future policy benefits	$	55,364	$	53,610
Policyholder account balances	14,039		14,594
Market risk benefit liabilities	429		465
Liability for policy and contract claims	710		670
Unearned premiums	96		115
Other liabilities	2,056		2,026
Long-term borrowings	1,520		1,518
Separate account liabilities	4,449		4,438
Liabilities related to discontinued operations	2		4
Total liabilities	78,665		77,440
Commitments and contingencies (Note 16)
Equity:
Common stock, $0.001 par value; 1,500,000,000 shares authorized; 607,393,280 and 606,314,179 shares issued, respectively; 402,682,970 and 421,419,484 shares outstanding, respectively	1		1
Additional paid-in capital	11,879		11,875
Accumulated other comprehensive income (loss)	(1,395)		(1,642)
Retained earnings	1,731		1,511
Treasury stock, at cost (204,710,310 and 184,894,695 shares, respectively)	(3,404)		(3,251)
Total Genworth Financial, Inc.’s stockholders’ equity	8,812		8,494
Noncontrolling interests	1,009		937
Total equity	9,821		9,431
Total liabilities and equity	$	88,486	$	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 September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Revenues:
Premiums	$	886	$	874	$	2,613	$	2,604
Net investment income	799		777		2,340		2,367
Net investment gains (losses)	99		66		98		54
Policy fees and other income	151		163		466		488
Total revenues	1,935		1,880		5,517		5,513
Benefits and expenses:
Benefits and other changes in policy reserves	1,227		1,213		3,639		3,567
Liability remeasurement (gains) losses	106		34		170		65
Changes in fair value of market risk benefits and associated hedges	(1)		21		7		(10)
Interest credited	96		102		289		352
Acquisition and operating expenses, net of deferrals	259		259		744		724
Amortization of deferred acquisition costs and intangibles	57		62		174		187
Interest expense	27		28		79		88
Total benefits and expenses	1,771		1,719		5,102		4,973
Income from continuing operations before income taxes	164		161		415		540
Provision for income taxes	9		40		80		138
Income from continuing operations	155		121		335		402
Loss from discontinued operations, net of taxes	(8)		(3)		(20)		(5)
Net income	147		118		315		397
Less: net income attributable to noncontrolling interests	31		33		94		97
Net income available to Genworth Financial, Inc.’s common stockholders	$	116	$	85	$	221	$	300
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.30	$	0.20	$	0.58	$	0.70
Diluted	$	0.30	$	0.20	$	0.58	$	0.69
Net income available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.29	$	0.20	$	0.54	$	0.69
Diluted	$	0.28	$	0.19	$	0.53	$	0.68
Weighted-average common shares outstanding:
Basic	408.0		430.8		413.2		436.7
Diluted	413.3		435.8		417.9		442.3

See Notes to Condensed Consolidated Financial Statements

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GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Amounts in millions)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net income	$	147	$	118	$	315	$	397
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities without an allowance for credit losses	643		1,662		1,278		749
Net unrealized gains (losses) on securities with an allowance for credit losses	—		—		5		—
Derivatives qualifying as hedges	(27)		141		(139)		(139)
Change in the discount rate used to measure future policy benefits	(627)		(1,965)		(880)		98
Change in instrument-specific credit risk of market risk benefits	1		—		1		2
Foreign currency translation and other adjustments	(1)		3		13		(2)
Total other comprehensive income (loss)	(11)		(159)		278		708
Total comprehensive income (loss)	136		(41)		593		1,105
Less: comprehensive income attributable to noncontrolling interests	43		58		125		121
Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders	$	93	$	(99)	$	468	$	984

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 September 30, 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 June 30, 2025	$	1	$	11,871	$	(1,372)	$	1,615	$	(3,327)	$	8,788	$	991	$	9,779
Repurchase of subsidiary shares	—		—		—		—		—		—		(20)		(20)
Comprehensive income:
Net income	—		—		—		116		—		116		31		147
Other comprehensive income (loss), net of taxes	—		—		(23)		—		—		(23)		12		(11)
Total comprehensive income											93		43		136
Treasury stock acquired in connection with share repurchases	—		—		—		—		(77)		(77)		—		(77)
Dividends to noncontrolling interests	—		—		—		—		—		—		(6)		(6)
Stock-based compensation expense and exercises and other	—		8		—		—		—		8		1		9
Balances as of September 30, 2025	$	1	$	11,879	$	(1,395)	$	1,731	$	(3,404)	$	8,812	$	1,009	$	9,821


	Three months ended September 30, 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 June 30, 2024	$	1	$	11,880	$	(1,687)	$	1,428	$	(3,163)	$	8,459	$	894	$	9,353
Repurchase of subsidiary shares	—		—		—		—		—		—		(14)		(14)
Comprehensive income (loss):
Net income	—		—		—		85		—		85		33		118
Other comprehensive income (loss), net of taxes	—		—		(184)		—		—		(184)		25		(159)
Total comprehensive income (loss)											(99)		58		(41)
Treasury stock acquired in connection with share repurchases	—		—		—		—		(36)		(36)		—		(36)
Dividends to noncontrolling interests	—		—		—		—		—		—		(5)		(5)
Stock-based compensation expense and exercises and other	—		(12)		—		(1)		—		(13)		11		(2)
Balances as of September 30, 2024	$	1	$	11,868	$	(1,871)	$	1,512	$	(3,199)	$	8,311	$	944	$	9,255

See Notes to Condensed Consolidated Financial Statements

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GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY, CONTINUED

(Amounts in millions)

(Unaudited)


	Nine months ended September 30, 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	—		—		—		—		—		—		(48)		(48)
Comprehensive income:
Net income	—		—		—		221		—		221		94		315
Other comprehensive income, net of taxes	—		—		247		—		—		247		31		278
Total comprehensive income											468		125		593
Treasury stock acquired in connection with share repurchases	—		—		—		—		(153)		(153)		—		(153)
Dividends to noncontrolling interests	—		—		—		—		—		—		(17)		(17)
Stock-based compensation expense and exercises and other	—		4		—		(1)		—		3		12		15
Balances as of September 30, 2025	$	1	$	11,879	$	(1,395)	$	1,731	$	(3,404)	$	8,812	$	1,009	$	9,821


	Nine months ended September 30, 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	—		—		—		—		—		—		(32)		(32)
Comprehensive income:
Net income	—		—		—		300		—		300		97		397
Other comprehensive income, net of taxes	—		—		684		—		—		684		24		708
Total comprehensive income											984		121		1,105
Treasury stock acquired in connection with share repurchases	—		—		—		—		(136)		(136)		—		(136)
Dividends to noncontrolling interests	—		—		—		—		—		—		(15)		(15)
Stock-based compensation expense and exercises and other	—		(16)		—		(1)		—		(17)		15		(2)
Balances as of September 30, 2024	$	1	$	11,868	$	(1,871)	$	1,512	$	(3,199)	$	8,311	$	944	$	9,255

See Notes to Condensed Consolidated Financial Statements

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GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)

(Unaudited)


	Nine months ended September 30,
		2025		2024
Cash flows from (used by) operating activities:
Net income		$	315	$	397
Less loss from discontinued operations, net of taxes		20		5
Adjustments to reconcile net income to net cash from (used by) operating activities:
Amortization of fixed maturity securities discounts and premiums		(105)		(91)
Net investment (gains) losses		(98)		(54)
Changes in fair value of market risk benefits and associated hedges		7		(10)
Charges assessed to policyholders		(409)		(429)
Amortization of deferred acquisition costs and intangibles		174		187
Deferred income taxes		(29)		(57)
Derivative instruments, limited partnerships and other		(268)		(343)
Long-term incentive compensation expense		42		37
Change in certain assets and liabilities:
Accrued investment income and other assets		(60)		(88)
Insurance reserves		588		490
Current tax liabilities		(3)		108
Other liabilities, policy and contract claims and other policy-related balances		(19)		(91)
Cash used by operating activities—discontinued operations		(28)		—
Net cash from (used by) operating activities		127		61
Cash flows from (used by) investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		1,981		1,870
Commercial mortgage loans		486		431
Limited partnerships and other invested assets		173		158
Proceeds from sales of investments:
Fixed maturity and equity securities		1,459		2,139
Purchases and originations of investments:
Fixed maturity and equity securities		(2,933)		(3,423)
Commercial mortgage loans		(415)		(171)
Limited partnerships and other invested assets		(330)		(413)
Short-term investments, net		(21)		26
Policy loans, net		93		69
Other		(25)		(45)
Net cash from (used by) investing activities		468		641
Cash flows from (used by) financing activities:
Deposits to universal life and investment contracts		383		407
Withdrawals from universal life and investment contracts		(773)		(963)
Proceeds from issuance of long-term debt		—		750
Debt issuance costs		—		(7)
Repayment and repurchase of long-term debt		—		(793)
Repurchase of subsidiary shares		(48)		(32)
Treasury stock acquired in connection with share repurchases		(151)		(135)
Dividends paid to noncontrolling interests		(17)		(15)
Other, net		(1)		(72)
Net cash from (used by) financing activities		(607)		(860)

Net change in cash, cash equivalents and restricted cash		(12)		(158)
Cash, cash equivalents and restricted cash at beginning of period		2,048		2,215
Cash, cash equivalents and restricted cash at end of period		$	2,036	$	2,057

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 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 Genworth Financial’s existing share repurchase program that began in May 2022. Pursuant to the program, during the nine months ended September 30, 2025, Genworth Financial repurchased 19,815,615 shares of its

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

common stock at an average price of $7.62 per share for a total cost of $153 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. On September 18, 2025, Genworth Financial announced that its Board of Directors had authorized a new share repurchase program under which Genworth Financial may purchase up to $350 million of its outstanding common stock. Under the new 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.

In October 2025, Genworth Financial repurchased 3,302,403 shares of its common stock through a Rule 10b5-1 trading plan at an average price of $8.76 per share, finalizing the repurchases under the July 2023 authorization and leaving approximately $325 million available for repurchase under the new program as of October 31, 2025.

(2) Accounting Changes

Accounting Pronouncements Not Yet Adopted

In September 2025, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance to refine the scope of derivative accounting. The guidance added a scope exception for certain contracts that are not exchange-traded and have underlying variables based on the operations or activities of one of the parties to the contract. This guidance is effective for us on January 1, 2027 using the prospective or modified retrospective method, with early adoption permitted. We are currently evaluating the impact the guidance may have on our processes.

In September 2025, the FASB issued new accounting guidance related to accounting for internal-use software costs. The new guidance modified the cost capitalization threshold by removing project development stages and adding new capitalization considerations. Under the new standard, eligible costs are capitalized when management has authorized and committed funds to the project, and it is probable that the project will be completed and the software will be used for its intended purpose, commonly referred to as “the probable-to-complete threshold.” Additional disclosure will be required of internal-use software and related amortization regardless of how the internal-use software is classified on the balance sheet. This guidance is effective for us for interim and annual reporting periods beginning on January 1, 2028 using the prospective, modified retrospective or retrospective method, with early adoption permitted. We are currently evaluating the impact the guidance may have on our processes, controls and disclosures.

In November 2024, 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 and will be adopted using the retrospective method. We are finalizing the required disclosures in accordance with the new guidance, which will be reflected in the notes contained in our 2025 Annual Report on Form 10-K.

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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 September 30,				Nine months ended September 30,
(Amounts in millions, except per share amounts)	2025		2024		2025		2024
Weighted-average common shares used in basic earnings (loss) per share calculations	408.0		430.8		413.2		436.7
Potentially dilutive securities:
Performance stock units, restricted stock units and other equity-based awards	5.3		5.0		4.7		5.6
Weighted-average common shares used in diluted earnings (loss) per share calculations	413.3		435.8		417.9		442.3
Income from continuing operations:
Income from continuing operations	$	155	$	121	$	335	$	402
Less: net income from continuing operations attributable to noncontrolling interests	31		33		94		97
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	124	$	88	$	241	$	305
Basic per share	$	0.30	$	0.20	$	0.58	$	0.70
Diluted per share	$	0.30	$	0.20	$	0.58	$	0.69
Loss from discontinued operations:
Loss from discontinued operations, net of taxes	$	(8)	$	(3)	$	(20)	$	(5)
Basic per share	$	(0.02)	$	(0.01)	$	(0.05)	$	(0.01)
Diluted per share	$	(0.02)	$	(0.01)	$	(0.05)	$	(0.01)
Net income:
Income from continuing operations	$	155	$	121	$	335	$	402
Loss from discontinued operations, net of taxes	(8)		(3)		(20)		(5)
Net income	147		118		315		397
Less: net income attributable to noncontrolling interests	31		33		94		97
Net income available to Genworth Financial, Inc.’s common stockholders	$	116	$	85	$	221	$	300
Basic per share (1)	$	0.29	$	0.20	$	0.54	$	0.69
Diluted per share	$	0.28	$	0.19	$	0.53	$	0.68

_____________

(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 September 30,				Nine months ended September 30,
(Amounts in millions)	2025		2024		2025		2024
Fixed maturity securities—taxable	$	565	$	557	$	1,694	$	1,682
Fixed maturity securities—non-taxable	1		—		1		1
Equity securities	3		3		9		8
Commercial mortgage loans	74		74		219		224
Policy loans	39		38		107		152
Limited partnerships	62		36		139		92
Other invested assets (1)	64		70		187		205
Cash, cash equivalents, restricted cash and short-term investments	18		24		59		76
Gross investment income before expenses and fees	826		802		2,415		2,440
Expenses and fees	(27)		(25)		(75)		(73)
Net investment income	$	799	$	777	$	2,340	$	2,367

_____________

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

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(b)Net Investment Gains (Losses)

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


	Three months ended September 30,				Nine months ended September 30,
(Amounts in millions)	2025		2024		2025		2024
Realized investment gains (losses):
Available-for-sale fixed maturity securities:
Realized gains	$	3	$	7	$	14	$	35
Realized losses	(13)		(14)		(46)		(83)
Net realized gains (losses) on available-for-sale fixed maturity securities	(10)		(7)		(32)		(48)
Net realized gains (losses) on equity securities sold	—		—		5		—
Total net realized investment gains (losses)	(10)		(7)		(27)		(48)
Net change in allowance for credit losses on available-for-sale fixed maturity securities	(3)		—		(18)		7
Write-down of available-for-sale fixed maturity securities (1)	—		—		(4)		—
Net unrealized gains (losses) on equity securities still held	30		22		48		66
Net unrealized gains (losses) on limited partnerships	66		55		129		46
Commercial mortgage loans	(3)		(8)		(20)		(11)
Derivative instruments (2)	17		10		(13)		3
Other	2		(6)		3		(9)
Net investment gains (losses)	$	99	$	66	$	98	$	54

_____________________

(1)Represents write-down of securities deemed uncollectible or that we intend to sell or will be required to sell prior to recovery of the amortized cost basis.

(2)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 September 30, 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	$	10	$	—	$	(1)	$	—	$	—	$	—	$	—	$	9
Non-U.S. corporate	10		—		4		—		—		—		—		14
Commercial mortgage-backed	5		—		—		—		—		—		—		5
Total available-for-sale fixed maturity securities	$	25	$	—	$	3	$	—	$	—	$	—	$	—	$	28

There was no allowance for credit losses related to our available-for-sale fixed maturity securities as of and for the three months ended September 30, 2024.

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 nine months ended September 30, 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	$	10	$	(1)	$	(4)	$	—	$	—	$	—	$	9
Non-U.S. corporate	3		12		—		—		(1)		—		—		14
Commercial mortgage-backed	3		1		1		—		—		—		—		5
Total available-for-sale fixed maturity securities	$	10	$	23	$	—	$	(4)	$	(1)	$	—	$	—	$	28

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 nine months ended September 30, 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)	$	—	$	—	$	—	$	—

(c)Unrealized Investment Gains and Losses

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)	September 30, 2025		December 31, 2024
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses	$	(2,241)	$	(3,801)
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses	—		(7)
Adjustments to policyholder contract balances	63		83
Income taxes, net	266		530
Net unrealized investment gains (losses)	(1,912)		(3,195)
Less: net unrealized investment gains (losses) attributable to noncontrolling interests	(7)		(39)
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.	$	(1,905)	$	(3,156)

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 periods indicated:


	Three months ended September 30,				Nine months ended September 30,
(Amounts in millions)	2025		2024		2025		2024
Beginning balance	$	(2,536)	$	(3,042)	$	(3,156)	$	(2,130)
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on fixed maturity securities	736		2,140		1,535		911
Adjustments to policyholder contract balances	(11)		(34)		(20)		(7)
Provision for income taxes	(90)		(450)		(257)		(193)
Change in unrealized gains (losses) on investment securities	635		1,656		1,258		711
Reclassification adjustments to net investment (gains) losses (1)	8		6		25		38
Change in net unrealized investment gains (losses)	643		1,662		1,283		749
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests	12		25		32		24
Ending balance	$	(1,905)	$	(1,405)	$	(1,905)	$	(1,405)

_____________

(1)Net of taxes of $(2) million and $(1) million during the three months ended September 30, 2025 and 2024, respectively, and $(7) million and $(10) million during the nine months ended September 30, 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 September 30, 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	$	3,857	$	66	$	(330)	$	—	$	3,593
State and political subdivisions	2,387		14		(256)		—		2,145
Non-U.S. government	1,244		38		(79)		—		1,203
U.S. corporate:
Utilities	4,797		104		(355)		(3)		4,543
Energy	2,470		67		(122)		—		2,415
Finance and insurance	7,460		115		(478)		(2)		7,095
Consumer—non-cyclical	4,662		102		(278)		(4)		4,482
Technology and communications	2,984		65		(233)		—		2,816
Industrial	1,101		16		(82)		—		1,035
Capital goods	2,349		67		(102)		—		2,314
Consumer—cyclical	1,408		22		(72)		—		1,358
Transportation	1,091		43		(70)		—		1,064
Other	276		4		(11)		—		269
Total U.S. corporate	28,598		605		(1,803)		(9)		27,391
Non-U.S. corporate:
Utilities	691		4		(37)		(3)		655
Energy	1,011		30		(33)		(5)		1,003
Finance and insurance	1,743		43		(78)		—		1,708
Consumer—non-cyclical	629		6		(62)		—		573
Technology and communications	781		9		(57)		—		733
Industrial	774		21		(27)		(6)		762
Capital goods	714		14		(30)		—		698
Consumer—cyclical	250		4		(9)		—		245
Transportation	448		15		(19)		—		444
Other	489		12		(21)		—		480
Total non-U.S. corporate	7,530		158		(373)		(14)		7,301
Residential mortgage-backed	1,080		15		(36)		—		1,059
Commercial mortgage-backed	1,607		2		(244)		(5)		1,360
Other asset-backed	2,076		13		(31)		—		2,058
Total available-for-sale fixed maturity securities	$	48,379	$	911	$	(3,152)	$	(28)	$	46,110

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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

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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 September 30, 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	$	544	$	(23)	27	$	1,342	$	(307)	45	$	1,886	$	(330)	72
State and political subdivisions	166		(8)		36	1,520		(248)		247	1,686		(256)		283
Non-U.S. government	58		(1)		22	416		(78)		59	474		(79)		81
U.S. corporate	1,735		(61)		358	13,892		(1,742)		1,758	15,627		(1,803)		2,116
Non-U.S. corporate	228		(11)		42	3,611		(362)		442	3,839		(373)		484
Residential mortgage-backed	—		—		—	397		(36)		142	397		(36)		142
Commercial mortgage-backed	—		—		—	1,220		(244)		195	1,220		(244)		195
Other asset-backed	165		(1)		52	725		(30)		144	890		(31)		196
Total for fixed maturity securities in an unrealized loss position	$	2,896	$	(105)	537	$	23,123	$	(3,047)	3,032	$	26,019	$	(3,152)	3,569
% Below cost:
<20% Below cost	$	2,856	$	(91)	528	$	20,150	$	(1,964)	2,596	$	23,006	$	(2,055)	3,124
20%-50% Below cost	40		(14)		9	2,973		(1,083)		436	3,013		(1,097)		445

Total for fixed maturity securities in an unrealized loss position	$	2,896	$	(105)	537	$	23,123	$	(3,047)	3,032	$	26,019	$	(3,152)	3,569
Investment grade	$	2,835	$	(96)	518	$	22,514	$	(2,992)	2,947	$	25,349	$	(3,088)	3,465
Below investment grade	61		(9)		19	609		(55)		85	670		(64)		104
Total for fixed maturity securities in an unrealized loss position	$	2,896	$	(105)	537	$	23,123	$	(3,047)	3,032	$	26,019	$	(3,152)	3,569

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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 September 30, 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	$	334	$	(11)	55	$	1,951	$	(344)	288	$	2,285	$	(355)	343
Energy	147		(4)		32	1,039		(118)		136	1,186		(122)		168
Finance and insurance	332		(7)		78	4,190		(471)		512	4,522		(478)		590
Consumer—non-cyclical	339		(8)		63	2,238		(270)		252	2,577		(278)		315
Technology and communications	231		(15)		49	1,590		(218)		181	1,821		(233)		230
Industrial	128		(2)		24	554		(80)		80	682		(82)		104
Capital goods	69		(1)		21	995		(101)		123	1,064		(102)		144
Consumer—cyclical	31		(1)		12	786		(71)		112	817		(72)		124
Transportation	102		(9)		19	464		(61)		62	566		(70)		81
Other	22		(3)		5	85		(8)		12	107		(11)		17
Subtotal, U.S. corporate securities	1,735		(61)		358	13,892		(1,742)		1,758	15,627		(1,803)		2,116
Non-U.S. corporate:
Utilities	—		—		—	430		(37)		47	430		(37)		47
Energy	87		(5)		15	351		(28)		37	438		(33)		52
Finance and insurance	—		—		—	898		(78)		122	898		(78)		122
Consumer—non-cyclical	58		(1)		10	368		(61)		38	426		(62)		48
Technology and communications	48		(3)		11	431		(54)		47	479		(57)		58
Industrial	—		—		—	279		(27)		37	279		(27)		37
Capital goods	35		(2)		6	311		(28)		40	346		(30)		46
Consumer—cyclical	—		—		—	118		(9)		17	118		(9)		17
Transportation	—		—		—	221		(19)		29	221		(19)		29
Other	—		—		—	204		(21)		28	204		(21)		28
Subtotal, non-U.S. corporate securities	228		(11)		42	3,611		(362)		442	3,839		(373)		484
Total for corporate securities in an unrealized loss position	$	1,963	$	(72)	400	$	17,503	$	(2,104)	2,200	$	19,466	$	(2,176)	2,600

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

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The scheduled maturity distribution of fixed maturity securities as of September 30, 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	$	1,656	$	1,648
Due after one year through five years	8,381		8,309
Due after five years through ten years	11,293		11,230
Due after ten years	22,286		20,446
Subtotal	43,616		41,633
Residential mortgage-backed	1,080		1,059
Commercial mortgage-backed	1,607		1,360
Other asset-backed	2,076		2,058
Total	$	48,379	$	46,110

As of September 30, 2025, securities issued by finance and insurance, utilities, consumer—non-cyclical and technology and communications industry groups represented approximately 25%, 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 September 30, 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:



	September 30, 2025				December 31, 2024
(Amounts in millions)	Carrying value		% of total		Carrying value		% of total
Property type:
Retail	$	2,618	41	%	$	2,716	42	%
Industrial	1,441		23		1,331		21
Office	1,319		21		1,391		22
Apartments	502		8		498		7
Mixed use	348		5		360		6
Other	146		2		154		2
Subtotal	6,374		100	%	6,450		100	%
Allowance for credit losses	(59)				(39)
Total	$	6,315			$	6,411

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(Unaudited)



	September 30, 2025				December 31, 2024
(Amounts in millions)	Carrying value		% of total		Carrying value		% of total
Geographic region:
South Atlantic	$	1,726	27	%	$	1,750	27	%
Pacific	1,172		19		1,157		18
Mountain	986		16		971		15
Middle Atlantic	845		13		871		13
West South Central	522		8		539		8
East North Central	430		7		431		7
West North Central	342		5		372		6
East South Central	194		3		190		3
New England	157		2		169		3
Subtotal	6,374		100	%	6,450		100	%
Allowance for credit losses	(59)				(39)
Total	$	6,315			$	6,411

As of September 30, 2025, we had no commercial mortgage loans past due or on non-accrual status. As of 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 as of December 31, 2024. During the second quarter of 2025, we foreclosed on this commercial mortgage loan and recorded the property as real estate owned assets in other invested assets in our condensed consolidated balance sheet. 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.

During the three months ended September 30, 2025, we did not modify any commercial mortgage loans where the borrower was determined to be experiencing financial difficulty. During the nine months ended September 30, 2025 and the three and nine months ended September 30, 2024, we modified one commercial mortgage loan in each period where the borrower was determined to be experiencing financial difficulty. These loans were included in the office property type with an amortized cost of $9 million and $35 million as of September 30, 2025 and 2024, respectively, which represented 1% and 2%, respectively, of the total asset class. The modification during the nine months ended September 30, 2025 extended the contractual term of the loan by two years, with the option to extend by one additional year up to three times, and resulted in an increase to the interest rate. The modification during the three and nine months ended September 30, 2024 extended the contractual term of the loan by ten years and changed the loan from interest-only to amortizing, which resulted in an increase to the interest rate. We continue to account for these modified loans as existing loans. As of September 30, 2025, all loans previously modified during the 12 months prior remained current.

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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 September 30,				Nine months ended September 30,
(Amounts in millions)	2025		2024		2025		2024
Allowance for credit losses:
Beginning balance	$	56	$	30	$	39	$	27
Provision	3		8		20		11
Write-offs	—		—		—		—
Recoveries	—		—		—		—
Ending balance	$	59	$	38	$	59	$	38

During the nine months ended September 30, 2025, we increased the provision for credit losses primarily as a result of updates to the analytical model used to determine the adequacy of the allowance for credit losses.

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.

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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 September 30, 2025:


(Amounts in millions)	2025		2024		2023		2022		2021		2020 and prior		Total
Debt-to-value:
0% - 50%	$	82	$	36	$	78	$	130	$	176	$	1,944	$	2,446
51% - 60%	91		52		46		185		248		651		1,273
61% - 75%	242		111		140		497		398		968		2,356
76% - 100%	—		—		—		43		25		206		274
Greater than 100%	—		—		—		—		—		25		25
Total amortized cost	$	415	$	199	$	264	$	855	$	847	$	3,794	$	6,374
Debt service coverage ratio:
Less than 1.00	$	—	$	—	$	—	$	34	$	23	$	263	$	320
1.00 - 1.25	34		16		12		41		35		299		437
1.26 - 1.50	134		77		97		120		63		505		996
1.51 - 2.00	130		69		78		398		360		1,207		2,242
Greater than 2.00	117		37		77		262		366		1,520		2,379
Total amortized cost	$	415	$	199	$	264	$	855	$	847	$	3,794	$	6,374

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



	September 30, 2025
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100%			Total
Property type:
Retail	$	1,195		$	577		$	840		$	6		$	—		$	2,618
Industrial	640			285			516			—			—			1,441
Office	266			200			615			238			—			1,319
Apartments	193			119			190			—			—			502
Mixed use	75			63			158			27			25			348
Other	77			29			37			3			—			146
Total amortized cost	$	2,446		$	1,273		$	2,356		$	274		$	25		$	6,374
% of total	39		%	20		%	37		%	4		%	—		%	100		%
Weighted-average debt service coverage ratio	2.52			1.89			1.54			1.07			0.81			1.96

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



	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
Industrial	596			226			498			4			7			1,331
Office	269			220			639			263			—			1,391
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:



	September 30, 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	$	25		$	91		$	449		$	1,127		$	926		$	2,618
Industrial	50			64			225			419			683			1,441
Office	177			201			191			347			403			1,319
Apartments	17			25			88			165			207			502
Mixed use	43			45			27			127			106			348
Other	8			11			16			57			54			146
Total amortized cost	$	320		$	437		$	996		$	2,242		$	2,379		$	6,374
% of total	5		%	7		%	16		%	35		%	37		%	100		%
Weighted-average debt-to-value	75		%	70		%	64		%	57		%	43		%	54		%



	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
Industrial	33			70			202			486			540			1,331
Office	124			114			207			499			447			1,391
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		%

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(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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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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	September 30, 2025		December 31, 2024		Balance sheet classification	September 30, 2025		December 31, 2024
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps	Other invested assets	$	17	$	18	Other liabilities	$	750	$	749
Foreign currency swaps	Other invested assets	5		13		Other liabilities	4		1
Forward bond purchase commitments	Other invested assets	11		6		Other liabilities	53		44
Total cash flow hedges		33		37			807		794
Total derivatives designated as hedges		33		37			807		794
Derivatives not designated as hedges
Equity index options	Other invested assets	19		19		Other liabilities	—		—
Financial futures (1)	Other invested assets	—		—		Other liabilities	—		—
Forward bond purchase commitments	Other invested assets	—		—		Other liabilities	32		27
Foreign currency forward contracts	Other invested assets	—		—		Other liabilities	16		—
Fixed indexed annuity embedded derivatives	Other assets	—		—		Policyholder account balances (2)	142		155
Indexed universal life embedded derivatives	Reinsurance recoverable	—		—		Policyholder account balances (3)	15		15
Total derivatives not designated as hedges		19		19			205		197
Total derivatives		$	52	$	56		$	1,012	$	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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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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:


(Notional in millions)	Measurement	December 31, 2024		Additions		Maturities/ terminations		September 30, 2025
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps	Notional	$	8,757	$	—	$	(542)	$	8,215
Foreign currency swaps	Notional	144		12		—		156
Forward bond purchase commitments	Notional	2,639		425		—		3,064
Total cash flow hedges		11,540		437		(542)		11,435
Total derivatives designated as hedges		11,540		437		(542)		11,435
Derivatives not designated as hedges
Equity index options	Notional	604		355		(426)		533
Financial futures	Notional	1,102		3,192		(3,316)		978
Forward bond purchase commitments	Notional	500		—		—		500
Foreign currency forward contracts	Notional	—		521		—		521
Total derivatives not designated as hedges		2,206		4,068		(3,742)		2,532
Total derivatives		$	13,746	$	4,505	$	(4,284)	$	13,967


(Number of policies)	Measurement	December 31, 2024	Additions	Maturities/ terminations	September 30, 2025
Derivatives not designated as hedges
Fixed indexed annuity embedded derivatives	Policies	4,867	—	(526)	4,341
Indexed universal life embedded derivatives	Policies	717	—	(23)	694

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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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended September 30, 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	$	(8)	$	50	Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets	—		9		Net investment gains (losses)	—		Net investment gains (losses)
Interest rate swaps hedging liabilities	—		(1)		Interest expense	—		Net investment gains (losses)
Foreign currency swaps	3		—		Net investment income	—		Net investment gains (losses)
Forward bond purchase commitments	19		—		Net investment gains (losses)	—		Net investment gains (losses)
Total	$	14	$	58		$	—

The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended September 30, 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	$	181	$	55	Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets	—		6		Net investment gains (losses)	—		Net investment gains (losses)


Foreign currency swaps	(4)		—		Net investment income	—		Net investment gains (losses)

Forward bond purchase commitments	53		—		Net investment gains (losses)	—		Net investment gains (losses)
Total	$	230	$	61		$	—

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides information about the pre-tax income effects of cash flow hedges for the nine months ended September 30, 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	$	(31)	$	145	Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets	—		11		Net investment gains (losses)	—		Net investment gains (losses)
Interest rate swaps hedging liabilities	(3)		(2)		Interest expense	—		Net investment gains (losses)
Foreign currency swaps	(11)		—		Net investment income	—		Net investment gains (losses)
Forward bond purchase commitments	(4)		—		Net investment gains (losses)	—		Net investment gains (losses)
Total	$	(49)	$	154		$	—

The following table provides information about the pre-tax income effects of cash flow hedges for the nine months ended September 30, 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	$	(44)	$	160	Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets	—		11		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	9		—		Net investment gains (losses)	—		Net investment gains (losses)
Total	$	(36)	$	169		$	—

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 September 30,				Nine months ended September 30,
(Amounts in millions)	2025		2024		2025		2024
Beginning balance	$	380	$	730	$	492	$	1,010
Current period increases (decreases) in fair value (1)	11		181		(39)		(29)
Reclassification to net (income) (2)	(38)		(40)		(100)		(110)
Ending balance	$	353	$	871	$	353	$	871

______________

(1)Net of deferred taxes of $(3) million and $(49) million during the three months ended September 30, 2025 and 2024, respectively, and $10 million and $7 million during the nine months ended September 30, 2025 and 2024, respectively.

(2)Net of deferred taxes of $20 million and $21 million during the three months ended September 30, 2025 and 2024, respectively, and $54 million and $59 million during the nine months ended September 30, 2025 and 2024, respectively.

The total balance in accumulated other comprehensive income (loss) from derivatives designated as cash flow hedges of $353 million, net of taxes, recorded in stockholders’ equity as of September 30, 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, $125 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 nine months ended September 30, 2025 and 2024, we reclassified $10 million and $9 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.

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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 September 30,				Nine months ended September 30,				Classification of gain (loss) recognized in net income
(Amounts in millions)	2025		2024		2025		2024
Equity index options	$	4	$	2	$	5	$	8		Net investment gains (losses)
Financial futures	(24)		6		(41)		(73)			Changes in fair value of market risk benefits and associated hedges
Forward bond purchase commitments	3		6		(5)		(5)			Net investment gains (losses)
Foreign currency forward contracts	8		—		(16)		—			Net investment gains (losses)
Fixed indexed annuity embedded derivatives	(5)		(2)		(7)		(15)			Net investment gains (losses)
Indexed universal life embedded derivatives	(2)		(2)		(1)		4			Net investment gains (losses)
Total derivatives not designated as hedges	$	(16)	$	10	$	(65)	$	(81)

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:



	September 30, 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	$	52	$	855	$	(803)	$	56	$	821	$	(765)
Gross amounts offset in the balance sheet	—		—		—		—		—		—
Net amounts presented in the balance sheet	52		855		(803)		56		821		(765)
Gross amounts not offset in the balance sheet:
Financial instruments (2)	(25)		(25)		—		(31)		(31)		—
Collateral received	(21)		—		(21)		(11)		—		(11)
Collateral pledged	—		(1,617)		1,617		—		(1,592)		1,592
Over collateralization	1		803		(802)		1		802		(801)
Net amount	$	7	$	16	$	(9)	$	15	$	—	$	15

______________

(1)Does not include amounts related to embedded derivatives as of September 30, 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.

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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 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 September 30, 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 September 30, 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 September 30, 2025:

(Amounts in millions)

Fair value

Primary methodologies

Significant inputs

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

3,593

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

2,145

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

1,188

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

23,806

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

5,795

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

1,057

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

1,332

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

1,790

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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(Unaudited)

•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 $1,669 million and $820 million, respectively, as of September 30, 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 $355 million as of September 30, 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 $2,560 million as of September 30, 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.

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.

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(Unaudited)

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 September 30, 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.

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

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(Unaudited)

instruments as Level 3. As expected future interest credited decreases, the value of our embedded derivative liability will decrease. As of September 30, 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 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 September 30, 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 September 30, 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 September 30, 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 September 30, 2025 and December 31, 2024.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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:



	September 30, 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	$	3,593	$	—	$	3,593	$	—	$	—
State and political subdivisions	2,145		—		2,145		—		—
Non-U.S. government	1,203		—		1,188		15		—
U.S. corporate:
Utilities	4,543		—		3,612		931		—
Energy	2,415		—		2,394		21		—
Finance and insurance	7,095		—		6,495		600		—
Consumer—non-cyclical	4,482		—		4,433		49		—
Technology and communications	2,816		—		2,797		19		—
Industrial	1,035		—		1,019		16		—
Capital goods	2,314		—		2,278		36		—
Consumer—cyclical	1,358		—		1,277		81		—
Transportation	1,064		—		1,036		28		—
Other	269		—		134		135		—
Total U.S. corporate	27,391		—		25,475		1,916		—
Non-U.S. corporate:
Utilities	655		—		413		242		—
Energy	1,003		—		897		106		—
Finance and insurance	1,708		—		1,686		22		—
Consumer—non-cyclical	573		—		541		32		—
Technology and communications	733		—		724		9		—
Industrial	762		—		646		116		—
Capital goods	698		—		641		57		—
Consumer—cyclical	245		—		243		2		—
Transportation	444		—		408		36		—
Other	480		—		416		64		—
Total non-U.S. corporate	7,301		—		6,615		686		—
Residential mortgage-backed	1,059		—		1,057		2		—
Commercial mortgage-backed	1,360		—		1,332		28		—
Other asset-backed	2,058		—		1,790		268		—
Total fixed maturity securities	46,110		—		43,195		2,915		—
Equity securities	546		477		28		41		—
Limited partnerships	2,743		—		—		16		2,727
Other invested assets:
Derivative assets:
Interest rate swaps	17		—		17		—		—
Foreign currency swaps	5		—		5		—		—
Equity index options	19		—		—		19		—
Forward bond purchase commitments	11		—		—		11		—

Total derivative assets	52		—		22		30		—
Short-term investments	26		—		19		7		—
Total other invested assets	78		—		41		37		—
Separate account assets	4,449		4,449		—		—		—
Total assets	$	53,926	$	4,926	$	43,264	$	3,009	$	2,727

________________

(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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(Unaudited)



	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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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 July 1, 2025		Total realized and unrealized gains (losses)																Ending balance as of September 30, 2025		Total gains (losses) attributable to assets still held
(Amounts in millions)			Included in net income		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3 (1)		Transfer out of Level 3 (1)				Included in net income		Included in OCI
Fixed maturity securities:

Non-U.S. government	$	15	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	—
U.S. corporate:
Utilities	886		1		15		32		—		—		(3)		—		—		931		1		16
Energy	21		—		—		—		—		—		—		—		—		21		—		—
Finance and insurance	668		—		10		—		—		—		(49)		—		(29)		600		—		9
Consumer—non-cyclical	49		—		1		—		—		—		(1)		—		—		49		—		1
Technology and communications	17		—		1		1		—		—		—		—		—		19		—		1
Industrial	15		—		1		—		—		—		—		—		—		16		—		1
Capital goods	45		—		—		—		—		—		—		—		(9)		36		—		—
Consumer—cyclical	90		—		1		—		(1)		—		(1)		—		(8)		81		—		—
Transportation	29		—		—		—		—		—		(1)		—		—		28		—		—
Other	135		—		1		—		—		—		(1)		—		—		135		—		1
Total U.S. corporate	1,955		1		30		33		(1)		—		(56)		—		(46)		1,916		1		29
Non-U.S. corporate:
Utilities	262		(1)		—		1		(20)		—		—		—		—		242		—		—
Energy	106		—		—		—		—		—		—		—		—		106		—		—
Finance and insurance	22		—		1		—		—		—		(1)		—		—		22		—		1
Consumer—non-cyclical	31		—		1		—		—		—		—		—		—		32		—		1
Technology and communications	17		—		—		—		—		—		(8)		—		—		9		—		—
Industrial	111		—		1		4		—		—		—		—		—		116		—		1
Capital goods	56		—		1		—		—		—		—		—		—		57		—		—
Consumer—cyclical	—		—		—		2		—		—		—		—		—		2		—		—
Transportation	36		—		—		—		—		—		—		—		—		36		—		—
Other	64		—		—		—		—		—		—		—		—		64		—		—
Total non-U.S. corporate	705		(1)		4		7		(20)		—		(9)		—		—		686		—		3
Residential mortgage-backed	2		—		—		—		—		—		—		—		—		2		—		—
Commercial mortgage-backed	11		—		—		17		—		—		—		—		—		28		—		—
Other asset-backed	201		—		2		44		—		—		(4)		26		(1)		268		—		3
Total fixed maturity securities	2,889		—		36		101		(21)		—		(69)		26		(47)		2,915		1		35
Equity securities	41		—		—		—		—		—		—		—		—		41		—		—
Limited partnerships	17		(1)		—		—		—		—		—		—		—		16		(1)		—
Other invested assets:
Derivative assets:
Equity index options	17		4		—		3		—		—		(5)		—		—		19		4		—
Forward bond purchase commitments	6		—		5		—		—		—		—		—		—		11		—		5
Total derivative assets	23		4		5		3		—		—		(5)		—		—		30		4		5
Short-term investments	—		—		—		7		—		—		—		—		—		7		—		—
Total other invested assets	23		4		5		10		—		—		(5)		—		—		37		4		5
Total Level 3 assets	$	2,970	$	3	$	41	$	111	$	(21)	$	—	$	(74)	$	26	$	(47)	$	3,009	$	4	$	40

_______________

(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.

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	Beginning balance as of July 1, 2024		Total realized and unrealized gains (losses)																Ending balance as of September 30, 2024		Total gains (losses) attributable to assets still held
(Amounts in millions)			Included in net income		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3 (1)		Transfer out of Level 3 (1)				Included in net income		Included in OCI
Fixed maturity securities:
State and political subdivisions	$	65	$	1	$	3	$	—	$	—	$	—	$	—	$	—	$	(65)	$	4	$	—	$	—
Non-U.S. government	—		—		—		14		—		—		—		—		—		14		—		—
U.S. corporate:
Utilities	843		(5)		52		8		—		—		(16)		—		—		882		—		46
Energy	45		—		2		—		—		—		—		—		—		47		—		1
Finance and insurance	680		(2)		30		—		—		—		(2)		—		—		706		—		27
Consumer—non-cyclical	63		—		2		—		—		—		—		—		—		65		—		2
Technology and communications	12		—		—		—		—		—		—		—		—		12		—		—
Industrial	15		(1)		1		—		—		—		—		—		—		15		—		—
Capital goods	54		—		3		—		—		—		(10)		—		—		47		—		3
Consumer—cyclical	117		—		2		—		—		—		(2)		—		(14)		103		—		2
Transportation	20		—		1		13		—		—		(1)		—		—		33		—		1
Other	135		—		3		—		—		—		—		—		—		138		—		3
Total U.S. corporate	1,984		(8)		96		21		—		—		(31)		—		(14)		2,048		—		85
Non-U.S. corporate:
Utilities	280		—		7		—		—		—		(1)		36		(7)		315		—		8
Energy	119		—		4		—		—		—		(2)		—		—		121		—		4
Finance and insurance	133		2		5		—		—		—		—		—		(99)		41		—		1
Consumer—non-cyclical	77		(1)		2		—		(14)		—		(25)		—		—		39		—		1
Technology and communications	17		—		—		—		—		—		—		—		—		17		—		—
Industrial	60		—		2		—		—		—		—		—		—		62		—		3
Capital goods	45		—		2		—		(4)		—		—		—		—		43		—		1
Consumer—cyclical	7		—		1		—		—		—		—		—		(8)		—		—		—
Transportation	22		—		—		—		(1)		—		—		—		—		21		—		—
Other	51		—		2		—		—		—		—		—		—		53		—		2
Total non-U.S. corporate	811		1		25		—		(19)		—		(28)		36		(114)		712		—		20
Residential mortgage-backed	2		—		1		—		—		—		—		—		—		3		—		—
Commercial mortgage-backed	11		—		1		—		—		—		—		—		—		12		—		1
Other asset-backed	113		—		1		13		—		—		(2)		—		(25)		100		—		1
Total fixed maturity securities	2,986		(6)		127		48		(19)		—		(61)		36		(218)		2,893		—		107
Equity securities	42		—		—		1		—		—		—		—		—		43		—		—
Limited partnerships	16		(1)		—		—		—		—		(1)		—		—		14		(1)		—
Other invested assets:
Derivative assets:
Equity index options	21		2		—		3		—		—		(5)		—		—		21		2		—
Forward bond purchase commitments	21		—		39		—		—		—		—		—		—		60		—		39
Total derivative assets	42		2		39		3		—		—		(5)		—		—		81		2		39

Total other invested assets	42		2		39		3		—		—		(5)		—		—		81		2		39
Total Level 3 assets	$	3,086	$	(5)	$	166	$	52	$	(19)	$	—	$	(67)	$	36	$	(218)	$	3,031	$	1	$	146

___________________

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	Beginning balance as of January 1, 2025		Total realized and unrealized gains (losses)																Ending balance as of September 30, 2025		Total gains (losses) attributable to assets still held
(Amounts in millions)			Included in net income		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3 (1)		Transfer out of Level 3 (1)				Included in net income		Included in OCI
Fixed maturity securities:

Non-U.S. government	$	13	$	—	$	1	$	1	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	1
U.S. corporate:
Utilities	845		1		29		73		—		—		(8)		10		(19)		931		1		29
Energy	21		—		—		—		—		—		—		—		—		21		—		—
Finance and insurance	688		—		30		25		—		—		(79)		—		(64)		600		—		28
Consumer—non-cyclical	63		—		2		—		—		—		(16)		—		—		49		—		2
Technology and communications	12		—		1		1		—		—		—		5		—		19		—		1
Industrial	15		—		1		—		—		—		—		—		—		16		—		1
Capital goods	43		—		2		—		—		—		—		—		(9)		36		—		2
Consumer—cyclical	99		(3)		6		8		(17)		—		(4)		—		(8)		81		—		3
Transportation	31		—		1		—		—		—		(4)		—		—		28		—		1
Other	133		—		2		10		—		—		(10)		—		—		135		—		2
Total U.S. corporate	1,950		(2)		74		117		(17)		—		(121)		15		(100)		1,916		1		69
Non-U.S. corporate:
Utilities	282		(5)		9		1		(20)		—		(4)		—		(21)		242		(4)		9
Energy	116		—		(1)		3		(4)		—		(8)		—		—		106		—		(1)
Finance and insurance	21		—		2		—		—		—		(1)		—		—		22		—		2
Consumer—non-cyclical	39		—		1		—		—		—		(8)		—		—		32		—		1
Technology and communications	17		—		—		—		—		—		(8)		—		—		9		—		—
Industrial	67		—		5		4		—		—		—		40		—		116		—		5
Capital goods	47		—		2		8		—		—		—		—		—		57		—		2
Consumer—cyclical	—		—		—		2		—		—		—		—		—		2		—		—
Transportation	35		—		1		—		—		—		—		—		—		36		—		1
Other	51		—		1		12		—		—		—		—		—		64		—		1
Total non-U.S. corporate	675		(5)		20		30		(24)		—		(29)		40		(21)		686		(4)		20
Residential mortgage-backed	2		—		—		—		—		—		—		—		—		2		—		—
Commercial mortgage-backed	11		—		—		17		—		—		—		—		—		28		—		—
Other asset-backed	142		1		2		92		—		—		(9)		46		(6)		268		—		3
Total fixed maturity securities	2,793		(6)		97		257		(41)		—		(159)		101		(127)		2,915		(3)		93
Equity securities	44		—		—		—		(3)		—		—		—		—		41		—		—
Limited partnerships	19		(3)		—		—		—		—		—		—		—		16		(3)		—
Other invested assets:
Derivative assets:
Equity index options	19		5		—		9		—		—		(14)		—		—		19		5		—
Forward bond purchase commitments	6		—		5		—		—		—		—		—		—		11		—		5
Total derivative assets	25		5		5		9		—		—		(14)		—		—		30		5		5
Short-term investments	—		—		—		7		—		—		—		—		—		7		—		—
Total other invested assets	25		5		5		16		—		—		(14)		—		—		37		5		5
Total Level 3 assets	$	2,881	$	(4)	$	102	$	273	$	(44)	$	—	$	(173)	$	101	$	(127)	$	3,009	$	(1)	$	98

_______________

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	Beginning balance as of January 1, 2024		Total realized and unrealized gains (losses)																Ending balance as of September 30, 2024		Total gains (losses) attributable to assets still held
(Amounts in millions)			Included in net income		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3 (1)		Transfer out of Level 3 (1)				Included in net income		Included in OCI
Fixed maturity securities:
State and political subdivisions	$	60	$	3	$	6	$	—	$	—	$	—	$	—	$	—	$	(65)	$	4	$	2	$	3
Non-U.S. government	—		—		—		14		—		—		—		—		—		14		—		—
U.S. corporate:
Utilities	881		(5)		17		40		(13)		—		(42)		8		(4)		882		—		9
Energy	60		(1)		3		—		(4)		—		(11)		—		—		47		—		1
Finance and insurance	717		(1)		24		—		—		—		(67)		33		—		706		—		18
Consumer—non-cyclical	69		—		1		—		—		—		(5)		—		—		65		—		1
Technology and communications	12		—		—		—		—		—		—		—		—		12		—		—
Industrial	23		(1)		1		—		—		—		(8)		—		—		15		—		—
Capital goods	35		—		2		20		—		—		(10)		—		—		47		—		2
Consumer—cyclical	122		—		(1)		—		—		—		(4)		—		(14)		103		—		(1)
Transportation	22		—		1		13		—		—		(3)		—		—		33		—		1
Other	149		—		—		—		—		—		(11)		—		—		138		—		—
Total U.S. corporate	2,090		(8)		48		73		(17)		—		(161)		41		(18)		2,048		—		31
Non-U.S. corporate:
Utilities	269		—		(2)		35		—		—		(16)		36		(7)		315		—		(2)
Energy	131		—		3		—		—		—		(13)		—		—		121		—		3
Finance and insurance	134		5		1		—		—		—		—		—		(99)		41		3		(3)
Consumer—non-cyclical	81		(1)		1		—		(14)		—		(28)		—		—		39		—		—
Technology and communications	24		—		—		—		—		—		(7)		—		—		17		—		—
Industrial	63		—		—		—		—		—		(1)		—		—		62		—		1
Capital goods	53		—		—		14		(4)		—		(20)		—		—		43		—		—
Consumer—cyclical	1		—		—		7		—		—		—		—		(8)		—		—		—
Transportation	22		—		—		—		(1)		—		—		—		—		21		—		—
Other	52		—		1		—		—		—		—		—		—		53		—		1
Total non-U.S. corporate	830		4		4		56		(19)		—		(85)		36		(114)		712		3		—
Residential mortgage-backed	3		—		1		—		—		—		(1)		—		—		3		—		—
Commercial mortgage-backed	11		—		1		—		—		—		—		—		—		12		—		1
Other asset-backed	102		—		—		53		—		—		(9)		—		(46)		100		—		—
Total fixed maturity securities	3,096		(1)		60		196		(36)		—		(256)		77		(243)		2,893		5		35
Equity securities	32		—		—		19		(8)		—		—		—		—		43		—		—
Limited partnerships	20		(5)		—		—		—		—		(1)		—		—		14		(5)		—
Other invested assets:
Derivative assets:
Equity index options	15		8		—		11		—		—		(13)		—		—		21		8		—
Forward bond purchase commitments	51		—		9		—		—		—		—		—		—		60		—		9
Total derivative assets	66		8		9		11		—		—		(13)		—		—		81		8		9
Short-term investments	7		—		—		—		—		—		(7)		—		—		—		—		—
Total other invested assets	73		8		9		11		—		—		(20)		—		—		81		8		9
Total Level 3 assets	$	3,221	$	2	$	69	$	226	$	(44)	$	—	$	(277)	$	77	$	(243)	$	3,031	$	8	$	44

___________________

Table of Contents

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 periods indicated:


	Three months ended September 30,				Nine months ended September 30,
(Amounts in millions)	2025		2024		2025		2024
Total realized and unrealized gains (losses) included in net income:
Net investment income	$	1	$	2	$	2	$	8
Net investment gains (losses)	2		(7)		(6)		(6)
Total	$	3	$	(5)	$	(4)	$	2
Net gains (losses) included in net income attributable to assets still held:
Net investment income	$	1	$	—	$	1	$	5
Net investment gains (losses)	3		1		(2)		3
Total	$	4	$	1	$	(1)	$	8

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.

Table of Contents

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 September 30, 2025:

(Amounts in millions)

Fair value

Unobservable input

Range

Weighted-average (1)

Fixed maturity securities:

U.S. corporate:

Utilities

909

Credit spreads

59bps - 207bps

113bps

Energy

Credit spreads

110bps - 144bps

129bps

Finance and insurance

591

Credit spreads

14bps - 183bps

122bps

Consumer—non-cyclical

Credit spreads

61bps - 191bps

127bps

Technology and communications

Credit spreads

61bps - 160bps

97bps

Industrial

Credit spreads

82bps - 144bps

103bps

Capital goods

Credit spreads

110bps - 126bps

116bps

Consumer—cyclical

Credit spreads

73bps - 122bps

108bps

Transportation

Credit spreads

41bps - 136bps

115bps

Other

Credit spreads

70bps - 132bps

86bps

Total U.S. corporate

1,824

Credit spreads

14bps - 207bps

115bps

Non-U.S. corporate:

Utilities

234

Credit spreads

79bps - 195bps

107bps

Energy

Credit spreads

75bps - 145bps

102bps

Finance and insurance

Credit spreads

95bps - 115bps

106bps

Consumer—non-cyclical

Credit spreads

82bps - 125bps

89bps

Technology and communications

Credit spreads

73bps

Not applicable

Industrial

116

Credit spreads

88bps - 151bps

108bps

Capital goods

Credit spreads

108bps - 180bps

128bps

Transportation

Credit spreads

82bps - 126bps

104bps

Other

Credit spreads

59bps - 110bps

92bps

Total non-U.S. corporate

643

Credit spreads

59bps - 195bps

105bps

Derivative assets:

Equity index options

Equity index volatility

6% - 58%

24%

Forward bond purchase commitments

Counterparty financing spreads

15bps - 49bps

29bps

Other assets (2)

101

Lapse rate

2% - 9%

Non-performance risk
(counterparty credit risk)

42bps - 83bps

69bps

Equity index volatility

16% - 29%

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:



	September 30, 2025
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	142	$	—	$	—	$	142
Indexed universal life embedded derivatives	15		—		—		15
Total policyholder account balances	157		—		—		157
Derivative liabilities:
Interest rate swaps	750		—		750		—
Foreign currency swaps	4		—		4		—
Forward bond purchase commitments	85		—		—		85
Foreign currency forward contracts	16		—		16		—
Total derivative liabilities	855		—		770		85
Total liabilities	$	1,012	$	—	$	770	$	242



	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 July 1, 2025		Total realized and unrealized (gains) losses																Ending balance as of September 30, 2025		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3		Transfer out of Level 3				Included in net (income)		Included in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	144	$	5	$	—	$	—	$	—	$	—	$	(7)	$	—	$	—	$	142	$	5	$	—
Indexed universal life embedded derivatives	13		2		—		—		—		—		—		—		—		15		2		—
Total policyholder account balances	157		7		—		—		—		—		(7)		—		—		157		7		—
Derivative liabilities:
Forward bond purchase commitments	102		(3)		(14)		—		—		—		—		—		—		85		(3)		(13)
Total derivative liabilities	102		(3)		(14)		—		—		—		—		—		—		85		(3)		(13)
Total Level 3 liabilities	$	259	$	4	$	(14)	$	—	$	—	$	—	$	(7)	$	—	$	—	$	242	$	4	$	(13)


	Beginning balance as of July 1, 2024		Total realized and unrealized (gains) losses																Ending balance as of September 30, 2024		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3		Transfer out of Level 3				Included in net (income)		Included in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	160	$	2	$	—	$	—	$	—	$	—	$	(8)	$	—	$	(1)	$	153	$	2	$	—
Indexed universal life embedded derivatives	16		2		—		—		—		—		(1)		—		—		17		2		—
Total policyholder account balances	176		4		—		—		—		—		(9)		—		(1)		170		4		—
Derivative liabilities:
Forward bond purchase commitments	33		(6)		(13)		—		—		—		—		—		—		14		(6)		1
Total derivative liabilities	33		(6)		(13)		—		—		—		—		—		—		14		(6)		1
Total Level 3 liabilities	$	209	$	(2)	$	(13)	$	—	$	—	$	—	$	(9)	$	—	$	(1)	$	184	$	(2)	$	1

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	Beginning balance as of January 1, 2025		Total realized and unrealized (gains) losses																Ending balance as of September 30, 2025		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3		Transfer out of Level 3				Included in net (income)		Included in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	155	$	7	$	—	$	—	$	—	$	—	$	(18)	$	—	$	(2)	$	142	$	7	$	—
Indexed universal life embedded derivatives	15		1		—		—		—		—		(1)		—		—		15		1		—
Total policyholder account balances	170		8		—		—		—		—		(19)		—		(2)		157		8		—
Derivative liabilities:
Forward bond purchase commitments	71		5		9		—		—		—		—		—		—		85		5		10
Total derivative liabilities	71		5		9		—		—		—		—		—		—		85		5		10
Total Level 3 liabilities	$	241	$	13	$	9	$	—	$	—	$	—	$	(19)	$	—	$	(2)	$	242	$	13	$	10


	Beginning balance as of January 1, 2024		Total realized and unrealized (gains) losses																Ending balance as of September 30, 2024		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3		Transfer out of Level 3				Included in net (income)		Included in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	165	$	15	$	—	$	—	$	—	$	—	$	(25)	$	—	$	(2)	$	153	$	15	$	—
Indexed universal life embedded derivatives	15		(4)		—		—		—		7		(1)		—		—		17		(4)		—
Total policyholder account balances	180		11		—		—		—		7		(26)		—		(2)		170		11		—
Derivative liabilities:
Forward bond purchase commitments	9		5		—		—		—		—		—		—		—		14		5		—
Total derivative liabilities	9		5		—		—		—		—		—		—		—		14		5		—
Total Level 3 liabilities	$	189	$	16	$	—	$	—	$	—	$	7	$	(26)	$	—	$	(2)	$	184	$	16	$	—

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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 periods indicated:


	Three months ended September 30,				Nine months ended September 30,
(Amounts in millions)	2025		2024		2025		2024
Total realized and unrealized (gains) losses included in net (income):
Net investment income	$	—	$	—	$	—	$	—
Net investment (gains) losses	4		(2)		13		16
Total	$	4	$	(2)	$	13	$	16
Total (gains) losses included in net (income) attributable to liabilities still held:
Net investment income	$	—	$	—	$	—	$	—
Net investment (gains) losses	4		(2)		13		16
Total	$	4	$	(2)	$	13	$	16

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 September 30, 2025:


(Amounts in millions)	Fair value		Unobservable input	Range	Weighted-average (1)
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	142	Expected future interest credited	1% - 4%	2%
Indexed universal life embedded derivatives	$	15	Expected future interest credited	2% - 10%	5%
Net market risk benefits: (2)
Fixed indexed annuities	$	55	GMWB utilization rate	20% - 100%	71%
			Non-performance risk (credit spreads)	42bps - 83bps	69bps
			Expected future interest credited	1% - 4%	2%
Variable annuities	$	312	Lapse rate	2% - 11%	5%
			GMWB utilization rate	59% - 90%	80%
			Non-performance risk (credit spreads)	42bps - 83bps	69bps
			Equity index volatility	16% - 29%	23%
Derivative liabilities:
Forward bond purchase commitments	$	85	Counterparty financing spreads	29bps - 49bps	41bps

______________

(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:



	September 30, 2025
(Amounts in millions)	Notional amount			Carrying amount		Fair value
						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans, net			(1)	$	6,315	$	6,062	$	—	$	—	$	6,062
Bank loan investments			(1)	521		527		—		—		527
Liabilities:
Long-term borrowings			(1)	1,520		1,487		—		1,487		—
Investment contracts			(1)	4,004		4,085		—		—		4,085
Commitments to fund investments:
Bank loan investments	$	134		—		—		—		—		—
Private placement investments	379			—		—		—		—		—
Commercial mortgage loans	19			—		—		—		—		—

______________

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



	December 31, 2024
(Amounts in millions)	Notional amount			Carrying amount		Fair value
						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 September 30, 2025 and December 31, 2024, we had $34 million and $25 million, respectively, of real estate owned assets included in other invested assets in our condensed consolidated balance sheets acquired through foreclosure in full or partial settlement of commercial mortgage loan obligations. These properties 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 recorded at fair value less estimated selling costs, which was less than the carrying value. These amounts represented the fair value as of September 30, 2025 and December 31, 2024. The fair value of the real estate owned assets is classified as Level 2.

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 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 to 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:



	September 30, 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 and credit funds (1)	$	2,450	$	1,488	$	2,190	$