gnw-20260630

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 June 30, 2026


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 July 31, 2026, 377,851,037 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 June 30 , 2026 (Unaudited) and December 31, 2025			3
Condensed Consolidated Statements of Operations for the three and six months ended June 30 , 2026 and 2025 (Unaudited)			4
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30 , 2026 and 202 5 (Unaudited)			5
Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30 , 202 6 and 202 5 (Unaudited)			6
Condensed Consolidated Statements of Cash Flows for the six months ended June 30 , 202 6 and 202 5 (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			67
Note 13 — Liability for Policy and Contract Claims			68
Note 14 — Income Taxes			69
Note 15 — Segment Information			69
Note 16 — Commitments and Contingencies			72
Note 17 — Changes in Accumulated Other Comprehensive Income (Loss)			77
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			80
Item 3. Quantitative and Qualitative Disclosures About Market Risk			121
Item 4. Controls and Procedures			121
PART II—OTHER INFORMATION
Item 1. Legal Proceedings			122
Item 1A. Risk Factors			122
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			122
Item 5. Other Information			122
Item 6. Exhibits			123
Signatures			124

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)





	June 30, 2026		December 31, 2025
	(Unaudited)
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value (amortized cost of $48,228 and $48,150, respectively, and allowance for credit losses of $22 and $23, respectively)	$	45,264	$	45,762
Equity securities, at fair value	564		555
Commercial mortgage loans	6,408		6,363
Less: Allowance for credit losses	(57)		(59)
Commercial mortgage loans, net	6,351		6,304
Policy loans	2,385		2,297
Limited partnerships	3,538		3,484
Other invested assets	871		770
Total investments	58,973		59,172
Cash, cash equivalents and restricted cash	1,986		2,036
Accrued investment income	555		603
Deferred acquisition costs	1,497		1,586
Intangible assets and goodwill	201		198
Reinsurance recoverable	17,412		17,860
Less: Allowance for credit losses	(21)		(23)
Reinsurance recoverable, net	17,391		17,837
Other assets	474		418
Deferred tax asset	1,811		1,800
Market risk benefit assets	79		64
Separate account assets	4,396		4,369
Total assets	$	87,363	$	88,083
Liabilities and equity
Liabilities:
Future policy benefits	$	54,508	$	55,228
Policyholder account balances	13,895		13,843
Market risk benefit liabilities	366		413
Liability for policy and contract claims	757		727
Unearned premiums	81		92
Other liabilities	2,095		2,131
Long-term borrowings	1,500		1,513
Separate account liabilities	4,396		4,369

Total liabilities	77,598		78,316
Commitments and contingencies (Note 16)
Equity:
Common stock, $0.001 par value; 1,500,000,000 shares authorized; 608,633,288 and 607,393,280 shares issued, respectively; 378,357,289 and 391,836,579 shares outstanding, respectively	1		1
Additional paid-in capital	11,885		11,888
Accumulated other comprehensive income (loss)	(1,307)		(1,324)
Retained earnings	1,777		1,684
Treasury stock, at cost (230,275,999 and 215,556,701 shares, respectively)	(3,628)		(3,499)
Total Genworth Financial, Inc.’s stockholders’ equity	8,728		8,750
Noncontrolling interests	1,037		1,017
Total equity	9,765		9,767
Total liabilities and equity	$	87,363	$	88,083

See Notes to Condensed Consolidated Financial Statements

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GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in millions, except per share amounts)

(Unaudited)


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Revenues:
Premiums	$	875	$	865	$	1,756	$	1,727
Net investment income	836		802		1,602		1,541
Net investment gains (losses)	37		(28)		11		(1)
Policy fees and other income	153		157		309		315
Total revenues	1,901		1,796		3,678		3,582
Benefits and expenses:
Benefits and other changes in policy reserves	1,233		1,195		2,457		2,412
Liability remeasurement (gains) losses	132		60		176		64
Changes in fair value of market risk benefits and associated hedges	(17)		(10)		(7)		8
Interest credited	96		94		191		193
Acquisition and operating expenses, net of deferrals	268		249		481		485
Amortization of deferred acquisition costs and intangibles	54		57		109		117
Interest expense	26		26		51		52
Total benefits and expenses	1,792		1,671		3,458		3,331
Income (loss) from continuing operations before income taxes	109		125		220		251
Provision (benefit) for income taxes	26		35		57		71
Income (loss) from continuing operations	83		90		163		180
Income (loss) from discontinued operations, net of taxes	(2)		(7)		(3)		(12)
Net income (loss)	81		83		160		168
Less: net income (loss) attributable to noncontrolling interests	34		32		66		63
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	47	$	51	$	94	$	105
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.13	$	0.14	$	0.25	$	0.28
Diluted	$	0.13	$	0.14	$	0.25	$	0.28
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.12	$	0.12	$	0.24	$	0.25
Diluted	$	0.12	$	0.12	$	0.24	$	0.25
Weighted-average common shares outstanding:
Basic	381.3		413.2		384.7		415.7
Diluted	386.3		417.5		390.0		420.2

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 June 30,				Six months ended June 30,
	2026		2025		2026		2025
Net income (loss)	$	81	$	83	$	160	$	168
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities without an allowance for credit losses	99		130		(453)		635
Net unrealized gains (losses) on securities with an allowance for credit losses	1		4		4		5
Derivatives qualifying as hedges	(18)		(155)		(25)		(112)
Change in the discount rate used to measure future policy benefits	(167)		66		482		(253)
Change in instrument-specific credit risk of market risk benefits	1		1		1		—
Foreign currency translation and other adjustments	1		12		(2)		14
Total other comprehensive income (loss)	(83)		58		7		289
Total comprehensive income (loss)	(2)		141		167		457
Less: comprehensive income (loss) attributable to noncontrolling interests	34		41		56		82
Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders	$	(36)	$	100	$	111	$	375

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 June 30, 2026
	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 March 31, 2026	$	1	$	11,873	$	(1,224)	$	1,731	$	(3,566)	$	8,815	$	1,026	$	9,841
Repurchase of subsidiary shares													(18)		(18)
Comprehensive income (loss):
Net income (loss)							47				47		34		81
Other comprehensive income (loss), net of taxes					(83)						(83)		—		(83)
Total comprehensive income (loss)											(36)		34		(2)
Treasury stock acquired in connection with share repurchases									(62)		(62)				(62)
Dividends to noncontrolling interests													(6)		(6)
Stock-based compensation expense and exercises and other			12				(1)				11		1		12
Balances as of June 30, 2026	$	1	$	11,885	$	(1,307)	$	1,777	$	(3,628)	$	8,728	$	1,037	$	9,765


	Three months ended June 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 March 31, 2025	$	1	$	11,862	$	(1,422)	$	1,516	$	(3,297)	$	8,660	$	971	$	9,631
Repurchase of subsidiary shares													(16)		(16)
Comprehensive income (loss):
Net income (loss)							51				51		32		83
Other comprehensive income (loss), net of taxes					49						49		9		58
Total comprehensive income (loss)											100		41		141
Treasury stock acquired in connection with share repurchases									(30)		(30)				(30)
Dividends to noncontrolling interests													(6)		(6)
Stock-based compensation expense and exercises and other			9				(1)				8		1		9
Balances as of June 30, 2025	$	1	$	11,871	$	(1,373)	$	1,566	$	(3,327)	$	8,738	$	991	$	9,729

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)


	Six months ended June 30, 2026
	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, 2025	$	1	$	11,888	$	(1,324)	$	1,684	$	(3,499)	$	8,750	$	1,017	$	9,767
Repurchase of subsidiary shares													(36)		(36)
Comprehensive income (loss):
Net income (loss)							94				94		66		160
Other comprehensive income (loss), net of taxes					17						17		(10)		7
Total comprehensive income (loss)											111		56		167
Treasury stock acquired in connection with share repurchases									(129)		(129)				(129)
Dividends to noncontrolling interests													(12)		(12)
Stock-based compensation expense and exercises and other			(3)				(1)				(4)		12		8
Balances as of June 30, 2026	$	1	$	11,885	$	(1,307)	$	1,777	$	(3,628)	$	8,728	$	1,037	$	9,765


	Six months ended June 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	$	(1,643)	$	1,462	$	(3,251)	$	8,444	$	937	$	9,381
Repurchase of subsidiary shares													(28)		(28)
Comprehensive income (loss):
Net income (loss)							105				105		63		168
Other comprehensive income (loss), net of taxes					270						270		19		289
Total comprehensive income (loss)											375		82		457
Treasury stock acquired in connection with share repurchases									(76)		(76)				(76)
Dividends to noncontrolling interests													(11)		(11)
Stock-based compensation expense and exercises and other			(4)				(1)				(5)		11		6
Balances as of June 30, 2025	$	1	$	11,871	$	(1,373)	$	1,566	$	(3,327)	$	8,738	$	991	$	9,729

See Notes to Condensed Consolidated Financial Statements

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GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)

(Unaudited)


	Six months ended June 30,
		2026		2025
Cash flows from (used by) operating activities:
Net income (loss)		$	160	$	168
Less (income) loss from discontinued operations, net of taxes		3		12
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities:
Amortization of fixed maturity securities discounts and premiums		(92)		(69)
Net investment (gains) losses		(11)		1
Changes in fair value of market risk benefits and associated hedges		(7)		8
Charges assessed to policyholders		(265)		(276)
Amortization of deferred acquisition costs and intangibles		109		117
Deferred income taxes		4		(20)
Derivative instruments, limited partnerships and other		(159)		(160)
Long-term incentive compensation expense		35		25
Change in certain assets and liabilities:
Accrued investment income and other assets		(69)		(50)
Insurance reserves		489		336
Current tax liabilities		—		(20)
Other liabilities, policy and contract claims and other policy-related balances		(50)		(11)
Cash from (used by) operating activities—discontinued operations		(4)		(21)
Net cash from (used by) operating activities		143		40
Cash flows from (used by) investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		1,647		1,260
Commercial mortgage loans		364		313
Limited partnerships and other invested assets		161		102
Proceeds from sales of investments:
Fixed maturity and equity securities		1,203		1,042
Purchases and originations of investments:
Fixed maturity and equity securities		(2,812)		(2,103)
Commercial mortgage loans		(408)		(259)
Limited partnerships and other invested assets		(264)		(226)
Short-term investments, net		(41)		(6)
Policy loans, net		1		52


Other		(28)		(15)
Net cash from (used by) investing activities		(177)		160
Cash flows from (used by) financing activities:
Deposits to universal life and investment contracts		549		258
Withdrawals from universal life and investment contracts		(376)		(562)


Repayment and repurchase of long-term debt		(15)		—
Repurchase of subsidiary shares		(36)		(28)
Treasury stock acquired in connection with share repurchases		(130)		(77)
Dividends paid to noncontrolling interests		(12)		(11)
Other, net		4		(31)
Net cash from (used by) financing activities		(16)		(451)

Net change in cash, cash equivalents and restricted cash		(50)		(251)
Cash, cash equivalents and restricted cash at beginning of period		2,036		2,048
Cash, cash equivalents and restricted cash at end of period		$	1,986	$	1,797

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 two 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”).

•Closed Block. We service a variety of protection and retirement income products that were previously sold through Genworth Life Insurance Company (“GLIC”) and its subsidiaries, collectively referred to as our “legacy insurance subsidiaries.” Our primary protection products include long-term care and life insurance. 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. Our life insurance products include traditional and non-traditional life insurance (term, universal, term universal and corporate-owned life insurance) as well as funding agreements. Our retirement income products include fixed and variable annuities.

In addition to our two 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”), including aging care services offered through our CareScout services business (“CareScout Services”) and long-term care insurance products offered through our CareScout insurance business (“CareScout Insurance”), 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 2025 Annual Report on Form 10-K.

On September 18, 2025, Genworth Financial announced that its Board of Directors had authorized a share repurchase program under which Genworth Financial may purchase up to $350 million of its outstanding common stock. Under the

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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. Pursuant to the program, during the six months ended June 30, 2026, Genworth Financial repurchased 14,719,298 shares of its common stock at an average price of $8.67 per share for a total cost of $129 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.

In July 2026, Genworth Financial repurchased 514,057 shares of its common stock through a Rule 10b5-1 trading plan at an average price of $9.24 per share, leaving approximately $128 million available for repurchase under the share repurchase program as of July 31, 2026. The timing and number of future shares repurchased under the share repurchase program will depend on a variety of factors, including Genworth Financial’s stock price and trading volume, and general business and market conditions, among other factors. The authorization has no expiration date and may be modified, suspended or terminated at any time.

(2) Accounting Changes

Accounting Pronouncements Not Yet Adopted

In September 2025, the Financial Accounting Standards Board (“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 operations, 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.

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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 June 30,				Six months ended June 30,
(Amounts in millions, except per share amounts)	2026		2025		2026		2025
Weighted-average common shares used in basic earnings (loss) per share calculations	381.3		413.2		384.7		415.7
Potentially dilutive securities:
Performance stock units, restricted stock units and other equity-based awards	5.0		4.3		5.3		4.5
Weighted-average common shares used in diluted earnings (loss) per share calculations	386.3		417.5		390.0		420.2
Income (loss) from continuing operations:
Income (loss) from continuing operations	$	83	$	90	$	163	$	180
Less: net income (loss) from continuing operations attributable to noncontrolling interests	34		32		66		63
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	49	$	58	$	97	$	117
Basic per share	$	0.13	$	0.14	$	0.25	$	0.28
Diluted per share	$	0.13	$	0.14	$	0.25	$	0.28
Income (loss) from discontinued operations:
Income (loss) from discontinued operations, net of taxes	$	(2)	$	(7)	$	(3)	$	(12)
Basic per share	$	(0.01)	$	(0.02)	$	(0.01)	$	(0.03)
Diluted per share	$	(0.01)	$	(0.02)	$	(0.01)	$	(0.03)
Net income (loss):
Income (loss) from continuing operations	$	83	$	90	$	163	$	180
Income (loss) from discontinued operations, net of taxes	(2)		(7)		(3)		(12)
Net income (loss)	81		83		160		168
Less: net income (loss) attributable to noncontrolling interests	34		32		66		63
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	47	$	51	$	94	$	105
Basic per share	$	0.12	$	0.12	$	0.24	$	0.25
Diluted per share	$	0.12	$	0.12	$	0.24	$	0.25

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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 June 30,				Six months ended June 30,
(Amounts in millions)	2026		2025		2026		2025
Fixed maturity securities	$	592	$	570	$	1,148	$	1,129

Equity securities	3		3		5		6
Commercial mortgage loans	75		72		151		145
Policy loans	36		32		74		68
Limited partnerships	74		69		112		77
Other invested assets (1)	63		62		123		123
Cash, cash equivalents, restricted cash and short-term investments	19		19		38		41
Gross investment income before expenses and fees	862		827		1,651		1,589
Expenses and fees	(26)		(25)		(49)		(48)
Net investment income	$	836	$	802	$	1,602	$	1,541

_____________

(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 June 30,				Six months ended June 30,
(Amounts in millions)	2026		2025		2026		2025
Realized investment gains (losses):
Available-for-sale fixed maturity securities:
Realized gains	$	29	$	7	$	35	$	11
Realized losses	(34)		(25)		(61)		(33)
Net realized gains (losses) on available-for-sale fixed maturity securities	(5)		(18)		(26)		(22)
Net realized gains (losses) on equity securities sold	—		4		—		5
Total net realized investment gains (losses)	(5)		(14)		(26)		(17)
Net change in allowance for credit losses on available-for-sale fixed maturity securities	1		(11)		1		(15)
Write-down of available-for-sale fixed maturity securities (1)	—		(4)		—		(4)
Net unrealized gains (losses) on equity securities still held	59		32		40		18
Net unrealized gains (losses) on limited partnerships	(21)		25		(18)		63
Commercial mortgage loans	1		(20)		2		(17)
Derivative instruments (2)	3		(36)		14		(30)
Other	(1)		—		(2)		1
Net investment gains (losses)	$	37	$	(28)	$	11	$	(1)

_____________________

(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 2025 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 June 30, 2026:



(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:
Non-U.S. government	$	6	$	—	$	—	$	—	$	—	$	—	$	—	$	6
U.S. corporate	10		—		1		—		—		—		—		11
Non-U.S. corporate	4		—		(2)		—		—		—		—		2
Commercial mortgage-backed	3		—		—		—		—		—		—		3
Total available-for-sale fixed maturity securities	$	23	$	—	$	(1)	$	—	$	—	$	—	$	—	$	22

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 June 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	$	6	$	8	$	—	$	(4)	$	—	$	—	$	—	$	10
Non-U.S. corporate	4		7		—		—		(1)		—		—		10
Commercial mortgage-backed	4		1		—		—		—		—		—		5
Total available-for-sale fixed maturity securities	$	14	$	16	$	—	$	(4)	$	(1)	$	—	$	—	$	25

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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 six months ended June 30, 2026:



(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:
Non-U.S. government	$	2	$	—	$	4	$	—	$	—	$	—	$	—	$	6
U.S. corporate	8		—		3		—		—		—		—		11
Non-U.S. corporate	9		—		(4)		(3)		—		—		—		2
Commercial mortgage-backed	4		—		(1)		—		—		—		—		3
Total available-for-sale fixed maturity securities	$	23	$	—	$	2	$	(3)	$	—	$	—	$	—	$	22

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 six months ended June 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	$	—	$	(4)	$	—	$	—	$	—	$	10
Non-U.S. corporate	3		8		—		—		(1)		—		—		10
Commercial mortgage-backed	3		1		1		—		—		—		—		5
Total available-for-sale fixed maturity securities	$	10	$	19	$	1	$	(4)	$	(1)	$	—	$	—	$	25

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(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)	June 30, 2026		December 31, 2025
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses	$	(2,939)	$	(2,356)
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses	(3)		(9)
Adjustments to policyholder contract balances	73		66
Income taxes, net	428		307
Net unrealized investment gains (losses)	(2,441)		(1,992)
Less: net unrealized investment gains (losses) attributable to noncontrolling interests	(15)		(5)
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.	$	(2,426)	$	(1,987)

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 June 30,				Six months ended June 30,
(Amounts in millions)	2026		2025		2026		2025
Beginning balance	$	(2,526)	$	(2,660)	$	(1,987)	$	(3,156)
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on fixed maturity securities	127		150		(603)		799
Adjustments to policyholder contract balances	(4)		1		7		(9)
(Provision) benefit for income taxes	(27)		(31)		126		(167)
Change in unrealized gains (losses) on investment securities	96		120		(470)		623
Reclassification adjustments to net investment (gains) losses (1)	4		14		21		17
Change in net unrealized investment gains (losses)	100		134		(449)		640
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests	—		10		(10)		20
Ending balance	$	(2,426)	$	(2,536)	$	(2,426)	$	(2,536)

_____________

(1)Net of taxes of $(1) million and $(4) million during the three months ended June 30, 2026 and 2025, respectively, and $(5) million during both the six months ended June 30, 2026 and 2025.

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 June 30, 2026, 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	$	4,001	$	39	$	(416)	$	—	$	3,624
State and political subdivisions	2,261		7		(269)		—		1,999
Non-U.S. government	1,393		25		(79)		(6)		1,333
U.S. corporate:
Utilities	4,894		62		(402)		(3)		4,551
Energy	2,498		52		(129)		—		2,421
Finance and insurance	7,340		67		(536)		—		6,871
Consumer—non-cyclical	4,643		69		(314)		(8)		4,390
Technology and communications	2,721		38		(279)		—		2,480
Industrial	949		7		(89)		—		867
Capital goods	2,351		45		(117)		—		2,279
Consumer—cyclical	1,270		14		(77)		—		1,207
Transportation	1,100		31		(79)		—		1,052
Other	250		1		(14)		—		237
Total U.S. corporate	28,016		386		(2,036)		(11)		26,355
Non-U.S. corporate:
Utilities	618		2		(35)		—		585
Energy	937		18		(35)		(2)		918
Finance and insurance	1,748		24		(83)		—		1,689
Consumer—non-cyclical	593		3		(65)		—		531
Technology and communications	781		6		(66)		—		721
Industrial	749		12		(26)		—		735
Capital goods	725		7		(32)		—		700
Consumer—cyclical	226		1		(10)		—		217
Transportation	503		10		(23)		—		490
Other	442		8		(18)		—		432
Total non-U.S. corporate	7,322		91		(393)		(2)		7,018
Residential mortgage-backed	1,099		8		(38)		—		1,069
Commercial mortgage-backed	1,605		2		(243)		(3)		1,361
Other asset-backed	2,531		7		(33)		—		2,505
Total available-for-sale fixed maturity securities	$	48,228	$	565	$	(3,507)	$	(22)	$	45,264

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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


(Amounts in millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Fair value
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3,999	$	66	$	(364)	$	—	$	3,701
State and political subdivisions	2,356		13		(255)		—		2,114
Non-U.S. government	1,257		36		(76)		(2)		1,215
U.S. corporate:
Utilities	4,798		95		(375)		(3)		4,515
Energy	2,506		69		(123)		—		2,452
Finance and insurance	7,435		109		(487)		—		7,057
Consumer—non-cyclical	4,591		98		(279)		(4)		4,406
Technology and communications	2,947		58		(256)		—		2,749
Industrial	1,030		14		(89)		(1)		954
Capital goods	2,359		65		(105)		—		2,319
Consumer—cyclical	1,295		23		(69)		—		1,249
Transportation	1,115		37		(77)		—		1,075
Other	280		4		(14)		—		270
Total U.S. corporate	28,356		572		(1,874)		(8)		27,046
Non-U.S. corporate:
Utilities	672		4		(36)		(3)		637
Energy	957		27		(36)		(4)		944
Finance and insurance	1,751		43		(75)		—		1,719
Consumer—non-cyclical	615		6		(64)		—		557
Technology and communications	743		9		(63)		—		689
Industrial	769		19		(27)		—		761
Capital goods	710		11		(29)		—		692
Consumer—cyclical	255		3		(8)		—		250
Transportation	491		15		(21)		—		485
Other	467		12		(20)		(2)		457
Total non-U.S. corporate	7,430		149		(379)		(9)		7,191
Residential mortgage-backed	1,115		19		(34)		—		1,100
Commercial mortgage-backed	1,536		3		(226)		(4)		1,309
Other asset-backed	2,101		13		(28)		—		2,086
Total available-for-sale fixed maturity securities	$	48,150	$	871	$	(3,236)	$	(23)	$	45,762

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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 June 30, 2026:


	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	$	498	$	(12)	57	$	1,679	$	(404)	59	$	2,177	$	(416)	116
State and political subdivisions	209		(9)		32	1,456		(260)		249	1,665		(269)		281
Non-U.S. government	383		(6)		113	336		(73)		51	719		(79)		164
U.S. corporate	4,148		(79)		883	13,224		(1,954)		1,757	17,372		(2,033)		2,640
Non-U.S. corporate	1,370		(16)		231	3,160		(377)		393	4,530		(393)		624
Residential mortgage-backed	240		(2)		104	341		(36)		122	581		(38)		226
Commercial mortgage-backed	162		(4)		35	1,070		(239)		159	1,232		(243)		194
Other asset-backed	625		(6)		129	483		(27)		93	1,108		(33)		222
Total for fixed maturity securities in an unrealized loss position	$	7,635	$	(134)	1,584	$	21,749	$	(3,370)	2,883	$	29,384	$	(3,504)	4,467
% Below cost:
<20% Below cost	$	7,615	$	(124)	1,577	$	17,725	$	(1,927)	2,343	$	25,340	$	(2,051)	3,920
20%-50% Below cost	20		(10)		7	4,023		(1,442)		539	4,043		(1,452)		546
>50% Below cost	—		—		—	1		(1)		1	1		(1)		1
Total for fixed maturity securities in an unrealized loss position	$	7,635	$	(134)	1,584	$	21,749	$	(3,370)	2,883	$	29,384	$	(3,504)	4,467
Investment grade	$	7,394	$	(124)	1,526	$	21,243	$	(3,315)	2,801	$	28,637	$	(3,439)	4,327
Below investment grade	241		(10)		58	506		(55)		82	747		(65)		140
Total for fixed maturity securities in an unrealized loss position	$	7,635	$	(134)	1,584	$	21,749	$	(3,370)	2,883	$	29,384	$	(3,504)	4,467

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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 June 30, 2026:


	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	$	813	$	(14)	144	$	1,999	$	(388)	304	$	2,812	$	(402)	448
Energy	392		(7)		88	964		(122)		130	1,356		(129)		218
Finance and insurance	1,045		(16)		247	3,882		(520)		496	4,927		(536)		743
Consumer—non-cyclical	545		(8)		124	2,244		(306)		260	2,789		(314)		384
Technology and communications	386		(15)		93	1,511		(264)		189	1,897		(279)		282
Industrial	113		(3)		25	540		(83)		80	653		(86)		105
Capital goods	395		(6)		77	900		(111)		117	1,295		(117)		194
Consumer—cyclical	206		(2)		43	633		(75)		97	839		(77)		140
Transportation	208		(7)		36	444		(72)		69	652		(79)		105
Other	45		(1)		6	107		(13)		15	152		(14)		21
Subtotal, U.S. corporate securities	4,148		(79)		883	13,224		(1,954)		1,757	17,372		(2,033)		2,640
Non-U.S. corporate:
Utilities	152		(1)		20	349		(34)		40	501		(35)		60
Energy	171		(2)		26	323		(33)		35	494		(35)		61
Finance and insurance	361		(4)		67	704		(79)		93	1,065		(83)		160
Consumer—non-cyclical	55		(1)		19	375		(64)		42	430		(65)		61
Technology and communications	122		(2)		23	401		(64)		45	523		(66)		68
Industrial	144		(1)		22	208		(25)		31	352		(26)		53
Capital goods	124		(1)		22	328		(31)		45	452		(32)		67
Consumer—cyclical	88		(1)		9	90		(9)		12	178		(10)		21
Transportation	96		(2)		11	218		(21)		26	314		(23)		37
Other	57		(1)		12	164		(17)		24	221		(18)		36
Subtotal, non-U.S. corporate securities	1,370		(16)		231	3,160		(377)		393	4,530		(393)		624
Total for corporate securities in an unrealized loss position	$	5,518	$	(95)	1,114	$	16,384	$	(2,331)	2,150	$	21,902	$	(2,426)	3,264

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.

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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	$	438	$	(9)	28	$	1,626	$	(355)	68	$	2,064	$	(364)	96
State and political subdivisions	79		(2)		18	1,577		(253)		257	1,656		(255)		275
Non-U.S. government	115		(1)		36	399		(74)		55	514		(75)		91
U.S. corporate	1,664		(57)		399	14,057		(1,811)		1,814	15,721		(1,868)		2,213
Non-U.S. corporate	244		(11)		57	3,495		(366)		438	3,739		(377)		495
Residential mortgage-backed	—		—		—	391		(34)		140	391		(34)		140
Commercial mortgage-backed	59		(1)		15	1,118		(225)		169	1,177		(226)		184
Other asset-backed	187		(1)		57	640		(27)		128	827		(28)		185
Total for fixed maturity securities in an unrealized loss position	$	2,786	$	(82)	610	$	23,303	$	(3,145)	3,069	$	26,089	$	(3,227)	3,679
% Below cost:
<20% Below cost	$	2,731	$	(61)	593	$	19,932	$	(1,928)	2,587	$	22,663	$	(1,989)	3,180
20%-50% Below cost	55		(21)		17	3,370		(1,216)		481	3,425		(1,237)		498
>50% Below cost	—		—		—	1		(1)		1	1		(1)		1
Total for fixed maturity securities in an unrealized loss position	$	2,786	$	(82)	610	$	23,303	$	(3,145)	3,069	$	26,089	$	(3,227)	3,679
Investment grade	$	2,705	$	(71)	582	$	22,737	$	(3,096)	2,991	$	25,442	$	(3,167)	3,573
Below investment grade	81		(11)		28	566		(49)		78	647		(60)		106
Total for fixed maturity securities in an unrealized loss position	$	2,786	$	(82)	610	$	23,303	$	(3,145)	3,069	$	26,089	$	(3,227)	3,679

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	$	319	$	(8)	66	$	2,109	$	(367)	320	$	2,428	$	(375)	386
Energy	147		(5)		30	1,009		(118)		134	1,156		(123)		164
Finance and insurance	329		(5)		95	4,198		(482)		514	4,527		(487)		609
Consumer—non-cyclical	239		(3)		60	2,368		(276)		261	2,607		(279)		321
Technology and communications	259		(16)		63	1,573		(240)		195	1,832		(256)		258
Industrial	56		(1)		18	575		(82)		81	631		(83)		99
Capital goods	146		(3)		37	983		(102)		128	1,129		(105)		165
Consumer—cyclical	—		—		—	715		(69)		103	715		(69)		103
Transportation	130		(10)		24	449		(67)		67	579		(77)		91
Other	39		(6)		6	78		(8)		11	117		(14)		17
Subtotal, U.S. corporate securities	1,664		(57)		399	14,057		(1,811)		1,814	15,721		(1,868)		2,213
Non-U.S. corporate:
Utilities	—		—		—	386		(36)		43	386		(36)		43
Energy	78		(6)		16	358		(30)		49	436		(36)		65
Finance and insurance	85		(1)		14	800		(74)		109	885		(75)		123
Consumer—non-cyclical	—		—		—	390		(64)		43	390		(64)		43
Technology and communications	29		(2)		13	435		(61)		48	464		(63)		61
Industrial	18		(1)		10	259		(26)		35	277		(27)		45
Capital goods	—		—		—	332		(29)		42	332		(29)		42
Consumer—cyclical	—		—		—	130		(8)		15	130		(8)		15
Transportation	34		(1)		4	229		(20)		29	263		(21)		33
Other	—		—		—	176		(18)		25	176		(18)		25
Subtotal, non-U.S. corporate securities	244		(11)		57	3,495		(366)		438	3,739		(377)		495
Total for corporate securities in an unrealized loss position	$	1,908	$	(68)	456	$	17,552	$	(2,177)	2,252	$	19,460	$	(2,245)	2,708

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The scheduled maturity distribution of fixed maturity securities as of June 30, 2026 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	$	1,622	$	1,619
Due after one year through five years	8,673		8,454
Due after five years through ten years	10,693		10,598
Due after ten years	22,005		19,658
Subtotal	42,993		40,329
Residential mortgage-backed	1,099		1,069
Commercial mortgage-backed	1,605		1,361
Other asset-backed	2,531		2,505
Total	$	48,228	$	45,264

As of June 30, 2026, securities issued by finance and insurance, utilities, consumer—non-cyclical and energy industry groups represented approximately 26%, 15%, 15% and 10%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio.

As of June 30, 2026, 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:



	June 30, 2026				December 31, 2025
(Amounts in millions)	Carrying value		% of total		Carrying value		% of total
Property type:
Retail	$	2,587	40	%	$	2,642	42	%
Industrial	1,502		24		1,454		23
Office	1,262		20		1,292		20
Apartments	573		9		514		8
Mixed use	341		5		323		5
Other	143		2		138		2
Subtotal	6,408		100	%	6,363		100	%
Allowance for credit losses	(57)				(59)
Total	$	6,351			$	6,304

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(Unaudited)



	June 30, 2026				December 31, 2025
(Amounts in millions)	Carrying value		% of total		Carrying value		% of total
Geographic region:
South Atlantic	$	1,724	27	%	$	1,733	27	%
Pacific	1,136		18		1,167		19
Mountain	1,024		16		997		16
Middle Atlantic	848		13		845		13
West South Central	522		8		504		8
East North Central	486		8		424		7
West North Central	329		5		339		5
East South Central	198		3		202		3
New England	141		2		152		2
Subtotal	6,408		100	%	6,363		100	%
Allowance for credit losses	(57)				(59)
Total	$	6,351			$	6,304

As of June 30, 2026 and December 31, 2025, we had one commercial mortgage loan in the office property type with an amortized cost of $6 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, 2025. As of June 30, 2026, we had two commercial mortgage loans in the industrial property type with an aggregate amortized cost of $1 million that were more than 90 days past due. The collection of principal and interest on these loans is probable; therefore, they were not placed on non-accrual status as of June 30, 2026. As of December 31, 2025, these loans had an aggregate amortized cost of $3 million and were 31 to 60 days past due. 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 2025 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 and six months ended June 30, 2026, we modified one commercial mortgage loan where the borrower was determined to be experiencing financial difficulty. This loan was included in the office property type with an amortized cost of $36 million as of June 30, 2026, which represented 3% of the total property type. The modification extended the contractual term of the loan by five years and resulted in an increase to the interest rate. Payments on this previously amortizing loan became interest-only as a result of the modification. During the three and six months ended June 30, 2025, we modified one commercial mortgage loan where the borrower was determined to be experiencing financial difficulty. This loan was included in the office property type with an amortized cost of $9 million as of June 30, 2025, which represented 1% of the total property type. The modification 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. We continue to account for these modified loans as existing loans. As of June 30, 2026, all loans 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 June 30,				Six months ended June 30,
(Amounts in millions)	2026		2025		2026		2025
Allowance for credit losses:
Beginning balance	$	58	$	36	$	59	$	39
Provision	(1)		20		(2)		17
Write-offs	—		—		—		—
Recoveries	—		—		—		—
Ending balance	$	57	$	56	$	57	$	56

During the three and six months ended June 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 June 30, 2026:


(Amounts in millions)	2026		2025		2024		2023		2022		2021 and prior		Total
Debt-to-value:
0% - 50%	$	45	$	102	$	32	$	82	$	141	$	1,925	$	2,327
51% - 60%	67		98		58		41		213		836		1,313
61% - 75%	296		406		102		135		412		1,154		2,505
76% - 100%	—		—		—		—		42		190		232
Greater than 100%	—		—		—		—		—		31		31
Total amortized cost	$	408	$	606	$	192	$	258	$	808	$	4,136	$	6,408
Debt service coverage ratio:
Less than 1.00	$	—	$	—	$	—	$	—	$	34	$	253	$	287
1.00 - 1.25	7		43		15		12		40		270		387
1.26 - 1.50	159		266		76		96		115		543		1,255
1.51 - 2.00	148		169		68		74		369		1,408		2,236
Greater than 2.00	94		128		33		76		250		1,662		2,243
Total amortized cost	$	408	$	606	$	192	$	258	$	808	$	4,136	$	6,408

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



	June 30, 2026
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100%			Total
Property type:
Retail	$	1,116		$	584		$	881		$	6		$	—		$	2,587
Industrial	590			263			649			—			—			1,502
Office	260			236			552			208			6			1,262
Apartments	211			145			217			—			—			573
Mixed use	81			49			171			15			25			341
Other	69			36			35			3			—			143
Total amortized cost	$	2,327		$	1,313		$	2,505		$	232		$	31		$	6,408
% of total	36		%	21		%	39		%	4		%	—		%	100		%
Weighted-average debt service coverage ratio	2.49			1.87			1.53			1.24			0.75			1.93

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



	December 31, 2025
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100%			Total
Property type:
Retail	$	1,168		$	576		$	893		$	5		$	—		$	2,642
Industrial	615			255			584			—			—			1,454
Office	261			224			586			215			6			1,292
Apartments	211			127			176			—			—			514
Mixed use	69			54			148			27			25			323
Other	72			25			37			4			—			138
Total amortized cost	$	2,396		$	1,261		$	2,424		$	251		$	31		$	6,363
% of total	38		%	20		%	38		%	4		%	—		%	100		%
Weighted-average debt service coverage ratio	2.50			1.87			1.54			1.05			0.90			1.94

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



	June 30, 2026
(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	$	26		$	97		$	512		$	1,092		$	860		$	2,587
Industrial	43			60			360			418			621			1,502
Office	166			147			213			372			364			1,262
Apartments	16			32			96			192			237			573
Mixed use	30			40			52			106			113			341
Other	6			11			22			56			48			143
Total amortized cost	$	287		$	387		$	1,255		$	2,236		$	2,243		$	6,408
% of total	4		%	6		%	20		%	35		%	35		%	100		%
Weighted-average debt-to-value	75		%	68		%	64		%	58		%	42		%	55		%



	December 31, 2025
(Amounts in millions)	Less than 1.00			1.00 - 1.25			1.26 - 1.50			1.51 - 2.00			Greater than 2.00			Total
Property type:
Retail	$	27		$	93		$	515		$	1,107		$	900		$	2,642
Industrial	46			61			276			419			652			1,454
Office	175			187			200			331			399			1,292
Apartments	16			32			87			170			209			514
Mixed use	42			41			27			108			105			323
Other	8			11			16			53			50			138
Total amortized cost	$	314		$	425		$	1,121		$	2,188		$	2,315		$	6,363
% of total	5		%	7		%	18		%	34		%	36		%	100		%
Weighted-average debt-to-value	74		%	70		%	65		%	58		%	43		%	55		%

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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	June 30, 2026		December 31, 2025		Balance sheet classification	June 30, 2026		December 31, 2025
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps	Other invested assets	$	8	$	11	Other liabilities	$	779	$	849
Foreign currency swaps	Other invested assets	6		4		Other liabilities	3		4
Forward bond purchase commitments	Other invested assets	7		6		Other liabilities	66		71
Total cash flow hedges		21		21			848		924
Total derivatives designated as hedges		21		21			848		924
Derivatives not designated as hedges
Equity index options	Other invested assets	15		18		Other liabilities	—		—
Financial futures (1)	Other invested assets	—		—		Other liabilities	—		—
Forward bond purchase commitments	Other invested assets	—		—		Other liabilities	34		36
Foreign currency forward contracts	Other invested assets	—		—		Other liabilities	12		17
Fixed indexed annuity embedded derivatives	Other assets	—		—		Policyholder account balances (2)	132		138
Indexed universal life embedded derivatives	Reinsurance recoverable	—		—		Policyholder account balances (3)	14		14
Total derivatives not designated as hedges		15		18			192		205
Total derivatives		$	36	$	39		$	1,040	$	1,129

______________

(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 and for the periods indicated:


(Notional in millions)	Measurement	December 31, 2025		Additions		Maturities/ terminations		June 30, 2026
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps	Notional	$	8,058	$	—	$	(547)	$	7,511
Foreign currency swaps	Notional	156		—		—		156
Forward bond purchase commitments	Notional	2,964		124		(85)		3,003
Total cash flow hedges		11,178		124		(632)		10,670
Total derivatives designated as hedges		11,178		124		(632)		10,670
Derivatives not designated as hedges
Equity index options	Notional	503		202		(248)		457
Financial futures	Notional	989		2,095		(2,211)		873
Forward bond purchase commitments	Notional	500		—		—		500
Foreign currency forward contracts	Notional	521		519		(521)		519
Total derivatives not designated as hedges		2,513		2,816		(2,980)		2,349
Total derivatives		$	13,691	$	2,940	$	(3,612)	$	13,019


(Number of policies)	Measurement	December 31, 2025	Additions	Maturities/ terminations	June 30, 2026
Derivatives not designated as hedges
Fixed indexed annuity embedded derivatives	Policies	4,171	—	(297)	3,874
Indexed universal life embedded derivatives	Policies	688	—	(7)	681

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 (loss) effects of cash flow hedges for the three months ended June 30, 2026:


(Amounts in millions)	Gain (loss) recognized in OCI		Gain (loss) reclassified into net income (loss) from OCI		Classification of gain (loss) reclassified into net income (loss)	Gain (loss) recognized in net income (loss)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	—	$	42	Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets	—		5		Net investment gains (losses)	—		Net investment gains (losses)
Interest rate swaps hedging liabilities	3		—		Interest expense	—		Net investment gains (losses)
Foreign currency swaps	(3)		—		Net investment income	—		Net investment gains (losses)
Forward bond purchase commitments	16		1		Net investment gains (losses)	—		Net investment gains (losses)
Total	$	16	$	48		$	—

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended June 30, 2025:


(Amounts in millions)	Gain (loss) recognized in OCI		Gain (loss) reclassified into net income (loss) from OCI		Classification of gain (loss) reclassified into net income (loss)	Gain (loss) recognized in net income (loss)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	(85)	$	47	Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets	—		1		Net investment gains (losses)	—		Net investment gains (losses)
Interest rate swaps hedging liabilities	(1)		(1)		Interest expense	—		Net investment gains (losses)

Foreign currency swaps	(13)		—		Net investment income	—		Net investment gains (losses)

Forward bond purchase commitments	(59)		—		Net investment gains (losses)	—		Net investment gains (losses)
Total	$	(158)	$	47		$	—

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2026:


(Amounts in millions)	Gain (loss) recognized in OCI		Gain (loss) reclassified into net income (loss) from OCI		Classification of gain (loss) reclassified into net income (loss)	Gain (loss) recognized in net income (loss)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	35	$	86	Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets	—		8		Net investment gains (losses)	—		Net investment gains (losses)
Interest rate swaps hedging liabilities	2		(1)		Interest expense	—		Net investment gains (losses)
Foreign currency swaps	2		—		Net investment income	—		Net investment gains (losses)
Forward bond purchase commitments	6		1		Net investment gains (losses)	—		Net investment gains (losses)
Total	$	45	$	94		$	—

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2025:


(Amounts in millions)	Gain (loss) recognized in OCI		Gain (loss) reclassified into net income (loss) from OCI		Classification of gain (loss) reclassified into net income (loss)	Gain (loss) recognized in net income (loss)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	(23)	$	95	Net investment income	$	—	Net investment gains (losses)
Interest rate swaps hedging assets	—		2		Net investment gains (losses)	—		Net investment gains (losses)
Interest rate swaps hedging liabilities	(3)		(1)		Interest expense	—		Net investment gains (losses)

Foreign currency swaps	(14)		—		Net investment income	—		Net investment gains (losses)

Forward bond purchase commitments	(23)		—		Net investment gains (losses)	—		Net investment gains (losses)
Total	$	(63)	$	96		$	—

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GENWORTH FINANCIAL, INC.

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 June 30,				Six months ended June 30,
(Amounts in millions)	2026		2025		2026		2025
Beginning balance	$	180	$	535	$	187	$	492
Current period increases (decreases) in fair value (1)	13		(124)		36		(50)
Reclassification to net (income) loss (2)	(31)		(31)		(61)		(62)
Ending balance	$	162	$	380	$	162	$	380

______________

(1)Net of deferred taxes of $(3) million and $34 million during the three months ended June 30, 2026 and 2025, respectively, and $(9) million and $13 million during the six months ended June 30, 2026 and 2025, respectively.

(2)Net of deferred taxes of $17 million and $16 million during the three months ended June 30, 2026 and 2025, respectively, and $33 million and $34 million during the six months ended June 30, 2026 and 2025, respectively.

The total balance in accumulated other comprehensive income (loss) from derivatives designated as cash flow hedges of $162 million, net of taxes, recorded in stockholders’ equity as of June 30, 2026 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, $106 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 six months ended June 30, 2026 and 2025, we reclassified $6 million and $2 million, respectively, to net income (loss) in connection with forecasted transactions that were no longer considered reasonably possible of occurring.

Derivatives Not Designated As Hedges

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

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


	Three months ended June 30,				Six months ended June 30,				Classification of gain (loss) recognized in net income (loss)
(Amounts in millions)	2026		2025		2026		2025
Equity index options	$	6	$	5	$	3	$	1		Net investment gains (losses)
Financial futures	(52)		(50)		(46)		(17)			Changes in fair value of market risk benefits and associated hedges
Forward bond purchase commitments	3		(12)		2		(8)			Net investment gains (losses)
Foreign currency forward contracts	(5)		(24)		5		(24)			Net investment gains (losses)
Fixed indexed annuity embedded derivatives	(6)		(6)		(4)		(2)			Net investment gains (losses)
Indexed universal life embedded derivatives	(1)		—		(1)		1			Net investment gains (losses)
Total derivatives not designated as hedges	$	(55)	$	(87)	$	(41)	$	(49)

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Derivative Counterparty Credit Risk

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



	June 30, 2026						December 31, 2025
(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	$	36	$	894	$	(858)	$	39	$	977	$	(938)
Gross amounts offset in the balance sheet	—		—		—		—		—		—
Net amounts presented in the balance sheet	36		894		(858)		39		977		(938)
Gross amounts not offset in the balance sheet:
Financial instruments (2)	(22)		(22)		—		(21)		(21)		—
Collateral received	(10)		—		(10)		(17)		—		(17)
Collateral pledged	—		(1,582)		1,582		—		(1,717)		1,717
Over collateralization	3		720		(717)		4		778		(774)
Net amount	$	7	$	10	$	(3)	$	5	$	17	$	(12)

______________

(1)Does not include amounts related to embedded derivatives as of June 30, 2026 and December 31, 2025.

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

(6) Fair Value of Financial Instruments

Recurring Fair Value Measurements

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

Fixed maturity securities, equity securities and short-term investments

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

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In general, we first obtain valuations from pricing services. If prices are unavailable, 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 certain 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 June 30, 2026.

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.

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.

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Level 2 measurements

Fixed maturity securities

•Third-party pricing services: In estimating the fair value of fixed maturity securities, 87% of our portfolio was priced using pricing services and was classified as Level 2 as of June 30, 2026. 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 June 30, 2026:

(Amounts in millions)

Fair value

Primary methodologies

Significant inputs

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

3,624

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

1,999

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

1,318

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

22,620

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

5,508

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

1,062

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

1,341

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

2,048

Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers

Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports

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•Internal models: A portion of our U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities was $1,740 million and $761 million, respectively, as of June 30, 2026. 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

•Third-party pricing services: A portion of our non-U.S. government, U.S. corporate, non-U.S. corporate and other asset-backed securities are valued using pricing services. These pricing services utilize income-based approaches and internally generated models as part of the valuation processes. Pricing services utilized for valuation are reviewed annually. The fair value of our Level 3 fixed maturity securities priced by pricing services was $290 million as of June 30, 2026.

•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 $213 million as of June 30, 2026.

•Internal models: A portion of our U.S. corporate, non-U.S. corporate 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 $2,740 million as of June 30, 2026.

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

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

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Short-term investments. The primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain securities are valued using pricing services that utilize income-based approaches and internally generated models as part of the valuation processes.

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 June 30, 2026, 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

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determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance risk and risk margins. As a result of our assumptions for expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As expected future interest credited decreases, the value of our embedded derivative liability will decrease. As of June 30, 2026, 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 while exposing 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 June 30, 2026, 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 June 30, 2026 and December 31, 2025.

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 June 30, 2026, 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 June 30, 2026 and December 31, 2025.

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



	June 30, 2026
(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	$	3,624	$	—	$	3,624	$	—	$
State and political subdivisions	1,999		—		1,999		—
Non-U.S. government	1,333		—		1,318		15
U.S. corporate:
Utilities	4,551		—		3,503		1,048
Energy	2,421		—		2,357		64
Finance and insurance	6,871		—		6,261		610
Consumer—non-cyclical	4,390		—		4,356		34
Technology and communications	2,480		—		2,461		19
Industrial	867		—		850		17
Capital goods	2,279		—		2,243		36
Consumer—cyclical	1,207		—		1,166		41
Transportation	1,052		—		1,040		12
Other	237		—		123		114
Total U.S. corporate	26,355		—		24,360		1,995
Non-U.S. corporate:
Utilities	585		—		370		215
Energy	918		—		819		99
Finance and insurance	1,689		—		1,667		22
Consumer—non-cyclical	531		—		514		17
Technology and communications	721		—		701		20
Industrial	735		—		621		114
Capital goods	700		—		621		79
Consumer—cyclical	217		—		191		26
Transportation	490		—		402		88
Other	432		—		363		69
Total non-U.S. corporate	7,018		—		6,269		749
Residential mortgage-backed	1,069		—		1,062		7
Commercial mortgage-backed	1,361		—		1,341		20
Other asset-backed	2,505		—		2,048		457
Total fixed maturity securities	45,264		—		42,021		3,243
Equity securities	564		525		29		10
Limited partnerships	2,863		—		—		19		2,844
Other invested assets:
Derivative assets:
Interest rate swaps	8		—		8		—
Foreign currency swaps	6		—		6		—
Equity index options	15		—		—		15
Forward bond purchase commitments	7		—		—		7

Total derivative assets	36		—		14		22
Short-term investments	79		—		56		23
Total other invested assets	115		—		70		45
Separate account assets	4,396		4,396		—		—
Total assets	$	53,202	$	4,921	$	42,120	$	3,317	$	2,844

________________

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

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	December 31, 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	$	3,701	$	—	$	3,701	$	—	$
State and political subdivisions	2,114		—		2,114		—
Non-U.S. government	1,215		—		1,199		16
U.S. corporate:
Utilities	4,515		—		3,511		1,004
Energy	2,452		—		2,431		21
Finance and insurance	7,057		—		6,438		619
Consumer—non-cyclical	4,406		—		4,371		35
Technology and communications	2,749		—		2,731		18
Industrial	954		—		938		16
Capital goods	2,319		—		2,282		37
Consumer—cyclical	1,249		—		1,194		55
Transportation	1,075		—		1,048		27
Other	270		—		145		125
Total U.S. corporate	27,046		—		25,089		1,957
Non-U.S. corporate:
Utilities	637		—		400		237
Energy	944		—		837		107
Finance and insurance	1,719		—		1,697		22
Consumer—non-cyclical	557		—		541		16
Technology and communications	689		—		680		9
Industrial	761		—		645		116
Capital goods	692		—		628		64
Consumer—cyclical	250		—		226		24
Transportation	485		—		406		79
Other	457		—		382		75
Total non-U.S. corporate	7,191		—		6,442		749
Residential mortgage-backed	1,100		—		1,097		3
Commercial mortgage-backed	1,309		—		1,290		19
Other asset-backed	2,086		—		1,759		327
Total fixed maturity securities	45,762		—		42,691		3,071
Equity securities	555		485		29		41
Limited partnerships	2,784		—		—		16		2,768
Other invested assets:
Derivative assets:
Interest rate swaps	11		—		11		—
Foreign currency swaps	4		—		4		—
Equity index options	18		—		—		18
Forward bond purchase commitments	6		—		—		6
Total derivative assets	39		—		15		24
Short-term investments	37		—		14		23
Total other invested assets	76		—		29		47
Separate account assets	4,369		4,369		—		—
Total assets	$	53,546	$	4,854	$	42,749	$	3,175	$	2,768

_________________

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

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


	Beginning balance as of April 1, 2026		Total realized and unrealized gains (losses)																Ending balance as of June 30, 2026		Total gains (losses) attributable to assets still held
(Amounts in millions)			Included in net income (loss)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3 (1)		Transfer out of Level 3 (1)				Included in net income (loss)		Included in OCI
Fixed maturity securities:

Non-U.S. government	$	15	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	—
U.S. corporate:
Utilities	993		1		7		64		—		—		(20)		3		—		1,048		1		7
Energy	21		—		(1)		30		—		—		(1)		15		—		64		—		(1)
Finance and insurance	604		—		3		19		—		—		(16)		—		—		610		—		3
Consumer—non-cyclical	34		—		—		—		—		—		—		—		—		34		—		—
Technology and communications	10		—		1		8		—		—		—		—		—		19		—		—
Industrial	17		—		—		—		—		—		—		—		—		17		—		—
Capital goods	36		—		—		—		—		—		—		—		—		36		—		—
Consumer—cyclical	42		—		—		—		—		—		(1)		—		—		41		—		—
Transportation	13		—		—		—		—		—		(1)		—		—		12		—		—
Other	118		—		—		—		—		—		(4)		—		—		114		—		—
Total U.S. corporate	1,888		1		10		121		—		—		(43)		18		—		1,995		1		9
Non-U.S. corporate:
Utilities	227		—		1		—		—		—		(13)		—		—		215		—		1
Energy	108		—		2		2		—		—		(13)		—		—		99		—		2
Finance and insurance	22		—		—		—		—		—		—		—		—		22		—		—
Consumer—non-cyclical	17		—		—		—		—		—		—		—		—		17		—		—
Technology and communications	9		—		—		20		—		—		(9)		—		—		20		—		—
Industrial	114		—		—		—		—		—		—		—		—		114		—		—
Capital goods	63		—		—		16		—		—		—		—		—		79		—		—
Consumer—cyclical	25		—		—		1		—		—		—		—		—		26		—		—
Transportation	78		—		—		10		—		—		—		—		—		88		—		—
Other	74		—		—		—		—		—		(5)		—		—		69		—		—
Total non-U.S. corporate	737		—		3		49		—		—		(40)		—		—		749		—		3
Residential mortgage-backed	2		—		—		5		—		—		—		—		—		7		—		—
Commercial mortgage-backed	20		—		—		—		—		—		—		—		—		20		—		—
Other asset-backed	361		—		(2)		76		—		—		(13)		40		(5)		457		—		(2)
Total fixed maturity securities	3,023		1		11		251		—		—		(96)		58		(5)		3,243		1		10
Equity securities	48		—		—		1		—		—		—		—		(39)		10		—		—
Limited partnerships	20		(1)		—		—		—		—		—		—		—		19		(1)		—
Other invested assets:
Derivative assets:
Equity index options	12		6		—		2		—		—		(5)		—		—		15		5		—
Forward bond purchase commitments	4		—		3		—		—		—		—		—		—		7		—		3
Total derivative assets	16		6		3		2		—		—		(5)		—		—		22		5		3
Short-term investments	23		—		—		—		—		—		—		—		—		23		—		—
Total other invested assets	39		6		3		2		—		—		(5)		—		—		45		5		3
Total Level 3 assets	$	3,130	$	6	$	14	$	254	$	—	$	—	$	(101)	$	58	$	(44)	$	3,317	$	5	$	13

_______________

(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. The transfer out of Level 3 for equity securities was related to a change in the current period presentation of certain investments without a readily determinable fair value, which are required to be measured at cost minus impairment.

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


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

Non-U.S. government	$	15	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	—
U.S. corporate:
Utilities	862		—		10		25		—		—		(2)		10		(19)		886		—		9
Energy	21		—		—		—		—		—		—		—		—		21		—		—
Finance and insurance	667		—		11		—		—		—		(7)		—		(3)		668		—		11
Consumer—non-cyclical	49		—		—		—		—		—		—		—		—		49		—		—
Technology and communications	17		—		—		—		—		—		—		—		—		17		—		—
Industrial	15		—		—		—		—		—		—		—		—		15		—		—
Capital goods	44		—		1		—		—		—		—		—		—		45		—		1
Consumer—cyclical	107		(3)		3		—		(16)		—		(1)		—		—		90		—		1
Transportation	29		—		1		—		—		—		(1)		—		—		29		—		1
Other	128		—		1		10		—		—		(4)		—		—		135		—		1
Total U.S. corporate	1,939		(3)		27		35		(16)		—		(15)		10		(22)		1,955		—		24
Non-U.S. corporate:
Utilities	285		(4)		6		—		—		—		(4)		—		(21)		262		(4)		6
Energy	115		—		—		3		(4)		—		(8)		—		—		106		—		—
Finance and insurance	21		—		1		—		—		—		—		—		—		22		—		1
Consumer—non-cyclical	31		—		—		—		—		—		—		—		—		31		—		—
Technology and communications	17		—		—		—		—		—		—		—		—		17		—		—
Industrial	109		—		2		—		—		—		—		—		—		111		—		2
Capital goods	47		—		1		8		—		—		—		—		—		56		—		2

Transportation	35		—		1		—		—		—		—		—		—		36		—		1
Other	64		—		—		—		—		—		—		—		—		64		—		—
Total non-U.S. corporate	724		(4)		11		11		(4)		—		(12)		—		(21)		705		(4)		12
Residential mortgage-backed	2		—		—		—		—		—		—		—		—		2		—		—
Commercial mortgage-backed	11		—		—		—		—		—		—		—		—		11		—		—
Other asset-backed	185		1		—		—		—		—		—		20		(5)		201		—		—
Total fixed maturity securities	2,876		(6)		38		46		(20)		—		(27)		30		(48)		2,889		(4)		36
Equity securities	43		—		—		—		(2)		—		—		—		—		41		—		—
Limited partnerships	18		(1)		—		—		—		—		—		—		—		17		(1)		—
Other invested assets:
Derivative assets:
Equity index options	12		5		—		3		—		—		(3)		—		—		17		5		—
Forward bond purchase commitments	19		—		(13)		—		—		—		—		—		—		6		—		(10)
Total derivative assets	31		5		(13)		3		—		—		(3)		—		—		23		5		(10)

Total other invested assets	31		5		(13)		3		—		—		(3)		—		—		23		5		(10)
Total Level 3 assets	$	2,968	$	(2)	$	25	$	49	$	(22)	$	—	$	(30)	$	30	$	(48)	$	2,970	$	—	$	26

___________________

Table of Contents

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	Beginning balance as of January 1, 2026		Total realized and unrealized gains (losses)																Ending balance as of June 30, 2026		Total gains (losses) attributable to assets still held
(Amounts in millions)			Included in net income (loss)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3 (1)		Transfer out of Level 3 (1)				Included in net income (loss)		Included in OCI
Fixed maturity securities:

Non-U.S. government	$	16	$	—	$	(1)	$	—	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	(1)
U.S. corporate:
Utilities	1,004		1		(11)		93		—		—		(20)		3		(22)		1,048		1		(10)
Energy	21		—		(1)		30		—		—		(1)		15		—		64		—		(1)
Finance and insurance	619		—		(7)		22		—		—		(24)		—		—		610		—		(7)
Consumer—non-cyclical	35		—		—		—		—		—		(1)		—		—		34		—		—
Technology and communications	18		—		—		8		—		—		(7)		—		—		19		—		—
Industrial	16		1		—		—		—		—		—		—		—		17		1		—
Capital goods	37		—		(1)		—		—		—		—		—		—		36		—		(1)
Consumer—cyclical	55		—		(1)		—		—		—		(3)		—		(10)		41		—		(1)
Transportation	27		—		—		—		—		—		(2)		—		(13)		12		—		—
Other	125		—		(2)		—		—		—		(9)		—		—		114		—		(2)
Total U.S. corporate	1,957		2		(23)		153		—		—		(67)		18		(45)		1,995		2		(22)
Non-U.S. corporate:
Utilities	237		—		1		—		—		—		(23)		—		—		215		—		(2)
Energy	107		—		1		4		—		—		(13)		—		—		99		—		1
Finance and insurance	22		—		—		—		—		—		—		—		—		22		—		—
Consumer—non-cyclical	16		—		—		1		—		—		—		—		—		17		—		—
Technology and communications	9		—		—		20		—		—		(9)		—		—		20		—		—
Industrial	116		—		(2)		—		—		—		—		—		—		114		—		(2)
Capital goods	64		—		(1)		16		—		—		—		—		—		79		—		(1)
Consumer—cyclical	24		—		—		2		—		—		—		—		—		26		—		—
Transportation	79		—		(1)		10		—		—		—		—		—		88		—		(1)
Other	75		—		(1)		—		—		—		(5)		—		—		69		—		(1)
Total non-U.S. corporate	749		—		(3)		53		—		—		(50)		—		—		749		—		(6)
Residential mortgage-backed	3		—		—		5		—		—		—		—		(1)		7		—		—
Commercial mortgage-backed	19		—		1		—		—		—		—		—		—		20		—		1
Other asset-backed	327		—		(3)		105		—		—		(17)		60		(15)		457		—		(3)
Total fixed maturity securities	3,071		2		(29)		316		—		—		(134)		78		(61)		3,243		2		(31)
Equity securities	41		—		—		8		—		—		—		—		(39)		10		—		—
Limited partnerships	16		—		—		3		—		—		—		—		—		19		1		—
Other invested assets:
Derivative assets:
Equity index options	18		3		—		5		—		—		(11)		—		—		15		3		—
Forward bond purchase commitments	6		—		1		—		—		—		—		—		—		7		—		1
Total derivative assets	24		3		1		5		—		—		(11)		—		—		22		3		1
Short-term investments	23		—		—		—		—		—		—		—		—		23		—		—
Total other invested assets	47		3		1		5		—		—		(11)		—		—		45		3		1
Total Level 3 assets	$	3,175	$	5	$	(28)	$	332	$	—	$	—	$	(145)	$	78	$	(100)	$	3,317	$	6	$	(30)

_______________

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 June 30, 2025		Total gains (losses) attributable to assets still held
(Amounts in millions)			Included in net income (loss)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3 (1)		Transfer out of Level 3 (1)				Included in net income (loss)		Included in OCI
Fixed maturity securities:

Non-U.S. government	$	13	$	—	$	1	$	1	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	1
U.S. corporate:
Utilities	845		—		14		41		—		—		(5)		10		(19)		886		—		13
Energy	21		—		—		—		—		—		—		—		—		21		—		—
Finance and insurance	688		—		20		25		—		—		(30)		—		(35)		668		—		19
Consumer—non-cyclical	63		—		1		—		—		—		(15)		—		—		49		—		1
Technology and communications	12		—		—		—		—		—		—		5		—		17		—		—
Industrial	15		—		—		—		—		—		—		—		—		15		—		—
Capital goods	43		—		2		—		—		—		—		—		—		45		—		2
Consumer—cyclical	99		(3)		5		8		(16)		—		(3)		—		—		90		—		3
Transportation	31		—		1		—		—		—		(3)		—		—		29		—		1
Other	133		—		1		10		—		—		(9)		—		—		135		—		1
Total U.S. corporate	1,950		(3)		44		84		(16)		—		(65)		15		(54)		1,955		—		40
Non-U.S. corporate:
Utilities	282		(4)		9		—		—		—		(4)		—		(21)		262		(4)		9
Energy	116		—		(1)		3		(4)		—		(8)		—		—		106		—		(1)
Finance and insurance	21		—		1		—		—		—		—		—		—		22		—		1
Consumer—non-cyclical	39		—		—		—		—		—		(8)		—		—		31		—		—
Technology and communications	17		—		—		—		—		—		—		—		—		17		—		—
Industrial	67		—		4		—		—		—		—		40		—		111		—		4
Capital goods	47		—		1		8		—		—		—		—		—		56		—		2

Transportation	35		—		1		—		—		—		—		—		—		36		—		1
Other	51		—		1		12		—		—		—		—		—		64		—		1
Total non-U.S. corporate	675		(4)		16		23		(4)		—		(20)		40		(21)		705		(4)		17
Residential mortgage-backed	2		—		—		—		—		—		—		—		—		2		—		—
Commercial mortgage-backed	11		—		—		—		—		—		—		—		—		11		—		—
Other asset-backed	142		1		—		48		—		—		(5)		20		(5)		201		—		—
Total fixed maturity securities	2,793		(6)		61		156		(20)		—		(90)		75		(80)		2,889		(4)		58
Equity securities	44		—		—		—		(3)		—		—		—		—		41		—		—
Limited partnerships	19		(2)		—		—		—		—		—		—		—		17		(2)		—
Other invested assets:
Derivative assets:
Equity index options	19		1		—		6		—		—		(9)		—		—		17		2		—
Forward bond purchase commitments	6		—		—		—		—		—		—		—		—		6		—		—
Total derivative assets	25		1		—		6		—		—		(9)		—		—		23		2		—

Total other invested assets	25		1		—		6		—		—		(9)		—		—		23		2		—
Total Level 3 assets	$	2,881	$	(7)	$	61	$	162	$	(23)	$	—	$	(99)	$	75	$	(80)	$	2,970	$	(4)	$	58

___________________

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 (loss) 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 condensed consolidated statements of operations line item in which these gains and losses were presented for the periods indicated:


	Three months ended June 30,				Six months ended June 30,
(Amounts in millions)	2026		2025		2026		2025
Total realized and unrealized gains (losses) included in net income (loss):
Net investment income	$	1	$	—	$	2	$	—
Net investment gains (losses)	5		(2)		3		(7)
Total	$	6	$	(2)	$	5	$	(7)
Total gains (losses) included in net income (loss) attributable to assets still held:
Net investment income	$	1	$	—	$	2	$	—
Net investment gains (losses)	4		—		4		(4)
Total	$	5	$	—	$	6	$	(4)

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 June 30, 2026:

(Amounts in millions)

Fair value

Unobservable input

Range

Weighted-average (1)

Fixed maturity securities:

U.S. corporate:

Utilities

1,002

Credit spreads

53bps - 202bps

118bps

Energy

Credit spreads

117bps - 209bps

179bps

Finance and insurance

589

Credit spreads

14bps - 195bps

126bps

Consumer—non-cyclical

Credit spreads

64bps - 209bps

110bps

Technology and communications

Credit spreads

71bps - 174bps

118bps

Industrial

Credit spreads

71bps - 153bps

98bps

Capital goods

Credit spreads

117bps - 134bps

123bps

Consumer—cyclical

Credit spreads

98bps - 130bps

122bps

Transportation

Credit spreads

47bps - 141bps

116bps

Other

Credit spreads

76bps - 156bps

98bps

Total U.S. corporate

1,865

Credit spreads

14bps - 209bps

121bps

Non-U.S. corporate:

Utilities

214

Credit spreads

74bps - 186bps

103bps

Energy

Credit spreads

81bps - 147bps

101bps

Finance and insurance

Credit spreads

98bps - 124bps

108bps

Consumer—non-cyclical

Credit spreads

81bps - 133bps

94bps

Technology and communications

Credit spreads

88bps

Not applicable

Industrial

114

Credit spreads

81bps - 169bps

112bps

Capital goods

Credit spreads

110bps - 169bps

131bps

Consumer—cyclical

Credit spreads

110bps

Not applicable

Transportation

Credit spreads

81bps - 153bps

112bps

Other

Credit spreads

53bps - 117bps

99bps

Total non-U.S. corporate

707

Credit spreads

53bps - 186bps

107bps

Derivative assets:

Equity index options

Equity index volatility

13% - 29%

19%

Forward bond purchase commitments

Counterparty financing spreads

17bps - 43bps

24bps

Other assets (2)

Lapse rate

2% - 9%

Non-performance risk
(counterparty credit risk)

42bps - 83bps

69bps

Equity index volatility

17% - 27%

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:



	June 30, 2026
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	132	$	—	$	—	$	132
Indexed universal life embedded derivatives	14		—		—		14
Total policyholder account balances	146		—		—		146
Derivative liabilities:
Interest rate swaps	779		—		779		—
Foreign currency swaps	3		—		3		—
Forward bond purchase commitments	100		—		—		100
Foreign currency forward contracts	12		—		12		—
Total derivative liabilities	894		—		794		100
Total liabilities	$	1,040	$	—	$	794	$	246



	December 31, 2025
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	138	$	—	$	—	$	138
Indexed universal life embedded derivatives	14		—		—		14
Total policyholder account balances	152		—		—		152
Derivative liabilities:
Interest rate swaps	849		—		849		—
Foreign currency swaps	4		—		4		—
Forward bond purchase commitments	107		—		—		107
Foreign currency forward contracts	17		—		17		—
Total derivative liabilities	977		—		870		107
Total liabilities	$	1,129	$	—	$	870	$	259

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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 periods indicated:


	Beginning balance as of April 1, 2026		Total realized and unrealized (gains) losses																Ending balance as of June 30, 2026		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3		Transfer out of Level 3				Included in net (income) loss		Included in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	130	$	6	$	—	$	—	$	—	$	—	$	(4)	$	—	$	—	$	132	$	6	$	—
Indexed universal life embedded derivatives	13		1		—		—		—		—		—		—		—		14		1		—
Total policyholder account balances	143		7		—		—		—		—		(4)		—		—		146		7		—
Derivative liabilities:
Forward bond purchase commitments	116		(3)		(13)		—		—		—		—		—		—		100		(3)		(13)
Total derivative liabilities	116		(3)		(13)		—		—		—		—		—		—		100		(3)		(13)
Total Level 3 liabilities	$	259	$	4	$	(13)	$	—	$	—	$	—	$	(4)	$	—	$	—	$	246	$	4	$	(13)


	Beginning balance as of April 1, 2025		Total realized and unrealized (gains) losses																Ending balance as of June 30, 2025		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3		Transfer out of Level 3				Included in net (income) loss		Included in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	145	$	6	$	—	$	—	$	—	$	—	$	(6)	$	—	$	(1)	$	144	$	6	$	—
Indexed universal life embedded derivatives	13		—		—		—		—		—		—		—		—		13		—		—
Total policyholder account balances	158		6		—		—		—		—		(6)		—		(1)		157		6		—
Derivative liabilities:
Forward bond purchase commitments	44		12		46		—		—		—		—		—		—		102		12		46
Total derivative liabilities	44		12		46		—		—		—		—		—		—		102		12		46
Total Level 3 liabilities	$	202	$	18	$	46	$	—	$	—	$	—	$	(6)	$	—	$	(1)	$	259	$	18	$	46

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	Beginning balance as of January 1, 2026		Total realized and unrealized (gains) losses																Ending balance as of June 30, 2026		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3		Transfer out of Level 3				Included in net (income) loss		Included in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	138	$	4	$	—	$	—	$	—	$	—	$	(9)	$	—	$	(1)	$	132	$	4	$	—
Indexed universal life embedded derivatives	14		1		—		—		—		—		(1)		—		—		14		1		—
Total policyholder account balances	152		5		—		—		—		—		(10)		—		(1)		146		5		—
Derivative liabilities:
Forward bond purchase commitments	107		(2)		(5)		—		—		—		—		—		—		100		(2)		(5)
Total derivative liabilities	107		(2)		(5)		—		—		—		—		—		—		100		(2)		(5)
Total Level 3 liabilities	$	259	$	3	$	(5)	$	—	$	—	$	—	$	(10)	$	—	$	(1)	$	246	$	3	$	(5)


	Beginning balance as of January 1, 2025		Total realized and unrealized (gains) losses																Ending balance as of June 30, 2025		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfer into Level 3		Transfer out of Level 3				Included in net (income) loss		Included in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	155	$	2	$	—	$	—	$	—	$	—	$	(11)	$	—	$	(2)	$	144	$	2	$	—
Indexed universal life embedded derivatives	15		(1)		—		—		—		—		(1)		—		—		13		(1)		—
Total policyholder account balances	170		1		—		—		—		—		(12)		—		(2)		157		1		—
Derivative liabilities:
Forward bond purchase commitments	71		8		23		—		—		—		—		—		—		102		8		24
Total derivative liabilities	71		8		23		—		—		—		—		—		—		102		8		24
Total Level 3 liabilities	$	241	$	9	$	23	$	—	$	—	$	—	$	(12)	$	—	$	(2)	$	259	$	9	$	24

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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) loss 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 condensed consolidated statements of operations line item in which these gains and losses were presented for the periods indicated:


	Three months ended June 30,				Six months ended June 30,
(Amounts in millions)	2026		2025		2026		2025
Total realized and unrealized (gains) losses included in net (income) loss:
Net investment income	$	—	$	—	$	—	$	—
Net investment (gains) losses	4		18		3		9
Total	$	4	$	18	$	3	$	9
Total (gains) losses included in net (income) loss attributable to liabilities still held:
Net investment income	$	—	$	—	$	—	$	—
Net investment (gains) losses	4		18		3		9
Total	$	4	$	18	$	3	$	9

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) loss” 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 June 30, 2026:


(Amounts in millions)	Fair value		Unobservable input	Range	Weighted-average (1)
Policyholder account balances:
Fixed indexed annuity embedded derivatives	$	132	Expected future interest credited	1% - 4%	3%
Indexed universal life embedded derivatives	$	14	Expected future interest credited	3% - 11%	5%
Net market risk benefits: (2)
Fixed indexed annuities	$	52	GMWB utilization rate	20% - 100%	78%
			Non-performance risk (credit spreads)	42bps - 83bps	69bps
			Expected future interest credited	1% - 4%	3%
Variable annuities	$	235	Lapse rate	2% - 11%	5%
			GMWB utilization rate	57% - 90%	81%
			Non-performance risk (credit spreads)	42bps - 83bps	69bps
			Equity index volatility	17% - 27%	23%
Derivative liabilities:
Forward bond purchase commitments	$	100	Counterparty financing spreads	11bps - 44bps	34bps

______________

(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:



	June 30, 2026
(Amounts in millions)	Notional amount			Carrying amount		Fair value
						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans, net			(1)	$	6,351	$	6,072	$	—	$	6	$	6,066
Other invested assets			(1)	703		710		—		—		710
Liabilities:
Long-term borrowings			(1)	1,500		1,439		—		1,439		—
Investment contracts			(1)	3,930		3,954		—		—		3,954
Commitments to fund investments:
Private placement investments	$	677
Bank loan investments	122
Commercial mortgage loans	16

______________

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

December 31, 2025

(Amounts in millions)

Notional
amount

Carrying
amount

Fair value

Total

Level 1

Level 2

Level 3

Assets:

Commercial mortgage loans, net

(1)

6,304

6,092

—