10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2017

OR

☐ 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)
6620 West Broad Street Richmond, Virginia	23230
(Address of Principal Executive Offices)	(Zip Code)

(804) 281-6000

(Registrant’s Telephone Number, Including Area Code)

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).     Yes  ☒    No  ☐

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

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

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

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

As of October 26, 2017, 499,158,848 shares of Class A Common Stock, par value $0.001 per share, were outstanding.

TABLE OF CONTENTS

		Page
PART I—FINANCIAL INFORMATION			3
Item 1.	Financial Statements		3
	Condensed Consolidated Balance Sheets as of September  30, 2017 (Unaudited) and December 31, 2016		3
	Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2017 and 2016 (Unaudited)		4
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016 (Unaudited)		5
	Condensed Consolidated Statements of Changes in Equity for the nine months ended September 30, 2017 and 2016 (Unaudited)		6
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 (Unaudited)		7
	Notes to Condensed Consolidated Financial Statements (Unaudited)		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		88
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		173
Item 4.	Controls and Procedures		174
PART II—OTHER INFORMATION			174
Item 1.	Legal Proceedings		174
Item 1A.	Risk Factors		174
Item 6.	Exhibits		175
Signatures			176

2

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in millions, except per share amounts)

	September 30, 2017			December 31, 2016
	(Unaudited)
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value	$	62,552		$	60,572
Equity securities available-for-sale, at fair value		765			632
Commercial mortgage loans		6,268			6,111
Restricted commercial mortgage loans related to securitization entities		111			129
Policy loans		1,818			1,742
Other invested assets		1,590			2,071
Restricted other invested assets related to securitization entities, at fair value		—			312
Total investments		73,104			71,569
Cash and cash equivalents		2,836			2,784
Accrued investment income		639			659
Deferred acquisition costs		2,342			3,571
Intangible assets and goodwill		315			348
Reinsurance recoverable		17,553			17,755
Other assets		552			673
Deferred tax asset		24			—
Separate account assets		7,264			7,299
Total assets	$	104,629		$	104,658
Liabilities and equity
Liabilities:
Future policy benefits	$	38,022		$	37,063
Policyholder account balances		24,531			25,662
Liability for policy and contract claims		9,384			9,256
Unearned premiums		3,512			3,378
Other liabilities ($1 of other liabilities are related to securitization entities in each period)		2,002			2,916
Borrowings related to securitization entities ($12 are carried at fair value in each period)		59			74
Non-recourse funding obligations		310			310
Long-term borrowings		4,224			4,180
Deferred tax liability		234			53
Separate account liabilities		7,264			7,299
Total liabilities		89,542			90,191
Commitments and contingencies
Equity:
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 588 million and 587 million shares issued as of September 30, 2017 and December 31, 2016, respectively; 499 million and 498 million shares outstanding as of September 30, 2017 and December 31, 2016, respectively		1			1
Additional paid-in capital		11,973			11,962
Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		1,098			1,253
Net unrealized gains (losses) on other-than-temporarily impaired securities		10			9
Net unrealized investment gains (losses)		1,108			1,262
Derivatives qualifying as hedges		2,052			2,085
Foreign currency translation and other adjustments		(125	)		(253	)
Total accumulated other comprehensive income (loss)		3,035			3,094
Retained earnings		760			287
Treasury stock, at cost (88 million shares as of September 30, 2017 and December 31, 2016)		(2,700	)		(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		13,069			12,644
Noncontrolling interests		2,018			1,823
Total equity		15,087			14,467
Total liabilities and equity	$	104,629		$	104,658

See Notes to Condensed Consolidated Financial Statements

3

GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in millions, except per share amounts)

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Revenues:
Premiums	$	1,135		$	1,108		$	3,382		$	3,029
Net investment income		797			805			2,388			2,373
Net investment gains (losses)		85			20			220			31
Policy fees and other income		198			217			619			738
Total revenues		2,215			2,150			6,609			6,171
Benefits and expenses:
Benefits and other changes in policy reserves		1,344			1,662			3,796			3,715
Interest credited		164			173			494			523
Acquisition and operating expenses, net of deferrals		265			269			775			990
Amortization of deferred acquisition costs and intangibles		83			94			316			305
Interest expense		73			77			209			262
Total benefits and expenses		1,929			2,275			5,590			5,795
Income (loss) from continuing operations before income taxes		286			(125	)		1,019			376
Provision for income taxes		102			222			348			355
Income (loss) from continuing operations		184			(347	)		671			21
Income (loss) from discontinued operations, net of taxes		(9	)		15			(9	)		(25	)
Net income (loss)		175			(332	)		662			(4	)
Less: net income attributable to noncontrolling interests		68			48			198			151
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	107		$	(380	)	$	464		$	(155	)
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.23		$	(0.79	)	$	0.95		$	(0.26	)
Diluted	$	0.23		$	(0.79	)	$	0.94		$	(0.26	)
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.21		$	(0.76	)	$	0.93		$	(0.31	)
Diluted	$	0.21		$	(0.76	)	$	0.93		$	(0.31	)
Weighted-average common shares outstanding:
Basic		499.1			498.3			498.9			498.3
Diluted		501.6			498.3			501.2			498.3
Supplemental disclosures:
Total other-than-temporary impairments	$	(1	)	$	(2	)	$	(4	)	$	(35	)
Portion of other-than-temporary impairments included in other comprehensive income (loss)		—			—			—			—
Net other-than-temporary impairments		(1	)		(2	)		(4	)		(35	)
Other investments gains (losses)		86			22			224			66
Total net investment gains (losses)	$	85		$	20		$	220		$	31

See Notes to Condensed Consolidated Financial Statements

4

GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in millions)

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Net income (loss)	$	175		$	(332	)	$	662		$	(4	)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		(89	)		72			(173	)		1,624
Net unrealized gains (losses) on other-than-temporarily impaired securities		—			5			1			6
Derivatives qualifying as hedges		(12	)		54			(33	)		448
Foreign currency translation and other adjustments		81			(1	)		261			223
Total other comprehensive income (loss)		(20	)		130			56			2,301
Total comprehensive income (loss)		155			(202	)		718			2,297
Less: comprehensive income attributable to noncontrolling interests		108			64			313			260
Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders	$	47		$	(266	)	$	405		$	2,037

See Notes to Condensed Consolidated Financial Statements

5

GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Amounts in millions)

(Unaudited)

	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, 2016	$	1	$	11,962	$	3,094		$	287		$	(2,700	)	$	12,644		$	1,823		$	14,467
Cumulative effect of change in accounting, net of taxes		—		—		—			9			—			9			—			9
Repurchase of subsidiary shares		—		—		—			—			—			—			(31	)		(31	)
Comprehensive income (loss):
Net income		—		—		—			464			—			464			198			662
Other comprehensive income (loss) net of taxes		—		—		(59	)		—			—			(59	)		115			56
Total comprehensive income															405			313			718
Dividends to noncontrolling interests		—		—		—			—			—			—			(92	)		(92	)
Stock-based compensation expense and exercises and other		—		11		—			—			—			11			5			16
Balances as of September 30, 2017	$	1	$	11,973	$	3,035		$	760		$	(2,700	)	$	13,069		$	2,018		$	15,087
Balances as of December 31, 2015	$	1	$	11,949	$	3,010		$	564		$	(2,700	)	$	12,824		$	1,813		$	14,637
Return of capital to noncontrolling interests		—		—		—			—			—			—			(70	)		(70	)
Comprehensive income:
Net income (loss)		—		—		—			(155	)		—			(155	)		151			(4	)
Other comprehensive income, net of taxes		—		—		2,192			—			—			2,192			109			2,301
Total comprehensive income															2,037			260			2,297
Dividends to noncontrolling interests		—		—		—			—			—			—			(126	)		(126	)
Stock-based compensation expense and exercises and other		—		10		—			—			—			10			1			11
Balances as of September 30, 2016	$	1	$	11,959	$	5,202		$	409		$	(2,700	)	$	14,871		$	1,878		$	16,749

See Notes to Condensed Consolidated Financial Statements

6

GENWORTH FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)

(Unaudited)

	Nine months ended September 30,
	2017			2016
Cash flows from operating activities:
Net income (loss)	$	662		$	(4	)
Less loss from discontinued operations, net of taxes		9			25
Adjustments to reconcile net income (loss) to net cash from operating activities:
Gain on sale of business		—			(26	)
Amortization of fixed maturity securities discounts and premiums and limited partnerships		(107	)		(112	)
Net investment gains		(220	)		(31	)
Charges assessed to policyholders		(534	)		(574	)
Acquisition costs deferred		(67	)		(124	)
Amortization of deferred acquisition costs and intangibles		316			305
Deferred income taxes		234			173
Trading securities, held-for-sale investments and derivative instruments		716			759
Stock-based compensation expense		29			25
Change in certain assets and liabilities:
Accrued investment income and other assets		(21	)		(258	)
Insurance reserves		1,202			691
Current tax liabilities		(27	)		44
Other liabilities, policy and contract claims and other policy-related balances		(260	)		905
Net cash from operating activities		1,932			1,798
Cash flows used by investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		3,396			2,646
Commercial mortgage loans		454			555
Restricted commercial mortgage loans related to securitization entities		18			27
Proceeds from sales of investments:
Fixed maturity and equity securities		3,269			4,064
Purchases and originations of investments:
Fixed maturity and equity securities		(6,709	)		(8,758	)
Commercial mortgage loans		(608	)		(405	)
Other invested assets, net		(521	)		(138	)
Policy loans, net		28			(80	)
Proceeds from sale of businesses, net of cash transferred		—			39
Payments for business purchased, net of cash acquired		(5	)		—
Net cash used by investing activities		(678	)		(2,050	)
Cash flows used by financing activities:
Deposits to universal life and investment contracts		902			1,028
Withdrawals from universal life and investment contracts		(2,003	)		(1,463	)
Redemption of non-recourse funding obligations		—			(1,620	)
Repayment and repurchase of long-term debt		—			(362	)
Repayment of borrowings related to securitization entities		(16	)		(37	)
Repurchase of subsidiary shares		(31	)		—
Return of capital to noncontrolling interests		—			(70	)
Dividends paid to noncontrolling interests		(92	)		(126	)
Other, net		(30	)		(49	)
Net cash used by financing activities		(1,270	)		(2,699	)
Effect of exchange rate changes on cash and cash equivalents		68			36
Net change in cash and cash equivalents		52			(2,915	)
Cash and cash equivalents at beginning of period		2,784			5,993
Cash and cash equivalents at end of period	$	2,836		$	3,078

See Notes to Condensed Consolidated Financial Statements

7

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1) Formation of Genworth 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 (“IPO”) of Genworth’s 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.

On October 21, 2016, Genworth Financial entered into an agreement and plan of merger (the “Merger Agreement”) with Asia Pacific Global Capital Co., Ltd. (“the Parent”), a limited liability company incorporated in the People’s Republic of China, and Asia Pacific Global Capital USA Corporation (“Merger Sub”), a Delaware corporation and an indirect, wholly-owned subsidiary of the Parent. Subject to the terms and conditions of the Merger Agreement, including the satisfaction or waiver of certain conditions, Merger Sub would merge with and into Genworth Financial with Genworth Financial surviving the merger as an indirect, wholly-owned subsidiary of the Parent. The Parent is a newly formed subsidiary of China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, “China Oceanwide”). China Oceanwide has agreed to acquire all of our outstanding common stock for a total transaction value of approximately $2.7 billion, or $5.43 per share in cash. At a special meeting held on March 7, 2017, Genworth’s stockholders voted on and approved a proposal to adopt the Merger Agreement.

The transaction remains subject to closing conditions, including the receipt of required regulatory approvals in the U.S., China, and other international jurisdictions. Both parties are engaging with the relevant regulators regarding the applications and the pending transaction.

The accompanying unaudited condensed financial statements include on a consolidated basis the accounts of Genworth Financial and the affiliate companies in which it holds a majority voting interest or where it is the primary beneficiary of a variable interest entity (“VIE”). All intercompany accounts and transactions have been eliminated in consolidation.

References to “Genworth,” the “Company,” “we” or “our” in the accompanying unaudited condensed consolidated financial statements and these notes thereto are, unless the context otherwise requires, to Genworth Financial on a consolidated basis.

We operate our business through the following five operating segments:

• U.S. Mortgage Insurance. In the United States, we offer mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans (“flow mortgage insurance”). We selectively provide mortgage insurance on a bulk basis (“bulk mortgage insurance”) with essentially all of our bulk writings being prime-based.

• Canada Mortgage Insurance. We offer flow mortgage insurance and also provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk in Canada.

• Australia Mortgage Insurance. In Australia, we offer flow mortgage insurance and selectively provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk.

8

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

• U.S. Life Insurance. We offer long-term care insurance products as well as service traditional life insurance and fixed annuity products in the United States.

• Runoff. The Runoff segment includes the results of non-strategic products which have not been actively sold but we continue to service our existing blocks of business. Our non-strategic products primarily include our variable annuity, variable life insurance, institutional, corporate-owned life insurance and other accident and health insurance products. Institutional products consist of: funding agreements, funding agreements backing notes and guaranteed investment contracts.

In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations.

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 (“SEC”). 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 2016 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation.

(2) Accounting Changes

Accounting Pronouncements Recently Adopted

On January 1, 2017, we adopted new accounting guidance related to the accounting for stock compensation. The guidance primarily simplifies the accounting for employee share-based payment transactions, including a new requirement to record all of the income tax effects at settlement or expiration through the income statement, classifications of awards as either equity or liabilities, and classification on the statement of cash flows. We adopted this new accounting guidance on a modified retrospective basis and recorded a previously disallowed deferred tax asset of $9 million with a corresponding increase to cumulative effect of change in accounting within retained earnings at adoption.

On January 1, 2017, we adopted new accounting guidance related to transition to the equity method of accounting. The guidance eliminates the retrospective application of the equity method of accounting when obtaining significant influence over a previously held investment. The guidance requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. We did not have any significant impact from this guidance on our consolidated financial statements.

On January 1, 2017, we adopted new accounting guidance related to the assessment of contingent put and call options in debt instruments. The guidance clarifies the requirements for assessing whether contingent call

9

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. This guidance is consistent with our previous accounting practices and, accordingly, did not have any impact on our consolidated financial statements.

On January 1, 2017, we adopted new accounting guidance related to the effect of derivative contract novations on existing hedge accounting relationships. The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This guidance is consistent with our previous accounting for derivative contract novations and, accordingly, did not have any impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In August 2017, the Financial Accounting Standards Board (“the FASB”) issued new guidance intended to enable entities to better portray the economics of their derivative risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In certain situations, the amendments also simplify the application of hedge accounting. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating adopting this new guidance early and the impact it may have on our consolidated financial statements.

In May 2017, the FASB issued new guidance to clarify when to account for a change to share-based compensation as a modification. The new guidance requires modification accounting only if there are changes to the fair value, vesting conditions or classification, as a liability or equity, of the share-based compensation. The guidance is effective, prospectively, for us on January 1, 2018, accordingly, the guidance will not have any impact at adoption.

In March 2017, the FASB issued new guidance shortening the amortization period for the premium component of callable debt securities purchased at a premium. The guidance requires the premium to be amortized to the earliest call date. This change does not apply to securities held at a discount. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating the impact the guidance may have on our consolidated financial statements.

In February 2017, the FASB issued new guidance to clarify the accounting for gains and losses from the derecognition of nonfinancial assets and accounting for partial sales of nonfinancial assets. The new guidance clarifies when transferring ownership interests in a consolidated subsidiary holding nonfinancial assets is within scope. It also states that the reporting entity should identify each distinct nonfinancial asset and derecognize when a counterparty obtains control, and clarifies the accounting for partial sales. The new guidance is currently effective for us on January 1, 2018. We do not expect any significant impacts from this guidance on our consolidated financial statements.

In January 2017, the FASB issued new guidance simplifying the test for goodwill impairment. The new guidance states goodwill impairment is equal to the difference between the carrying value and fair value of the reporting unit up to the amount of recorded goodwill. The new guidance is currently effective for us on January 1, 2020, with early adoption permitted for testing dates after January 1, 2017. We do not expect any significant impacts from this new guidance on our consolidated financial statements.

10

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In October 2016, the FASB issued new guidance related to the income tax effects of intra-entity transfers of assets other than inventory. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance is currently effective for us on January 1, 2018. We are still in process of evaluating the impact the guidance may have on our consolidated financial statements, including any cumulative effect adjustment that will be recorded directly to retained earnings as of the beginning of the period of adoption.

In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to the current financial instruments accounting primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, will be measured at fair value with changes in fair value recognized in net income (loss). As of September 30, 2017, we have approximately $45 million of cumulative unrealized gains related to equity securities included in accumulated other comprehensive income as well as approximately $25 million of gains related to limited partnership investments currently recorded at cost, that will be reclassed to cumulative effect of change in accounting within retained earnings upon adoption of this new accounting guidance. The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated in combination with other deferred tax assets. This new guidance will be effective for us on January 1, 2018. We are still in process of evaluating the full impact the guidance may have on our consolidated financial statements.

11

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(3) Earnings (Loss) Per Share

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions, except per share amounts)	2017			2016			2017			2016
Weighted-average shares used in basic earnings (loss) per share calculations		499.1			498.3			498.9			498.3
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		2.5			—			2.3			—
Weighted-average shares used in diluted earnings (loss) per share calculations (1)		501.6			498.3			501.2			498.3
Income (loss) from continuing operations:
Income (loss) from continuing operations	$	184		$	(347	)	$	671		$	21
Less: income from continuing operations attributable to noncontrolling interests		68			48			198			151
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	116		$	(395	)	$	473		$	(130	)
Basic per share	$	0.23		$	(0.79	)	$	0.95		$	(0.26	)
Diluted per share	$	0.23		$	(0.79	)	$	0.94		$	(0.26	)
Income (loss) from discontinued operations:
Income (loss) from discontinued operations, net of taxes	$	(9	)	$	15		$	(9	)	$	(25	)
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests		—			—			—			—
Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders	$	(9	)	$	15		$	(9	)	$	(25	)
Basic per share	$	(0.02	)	$	0.03		$	(0.02	)	$	(0.05	)
Diluted per share	$	(0.02	)	$	0.03		$	(0.02	)	$	(0.05	)
Net income (loss):
Income (loss) from continuing operations	$	184		$	(347	)	$	671		$	21
Income (loss) from discontinued operations, net of taxes		(9	)		15			(9	)		(25	)
Net income (loss)		175			(332	)		662			(4	)
Less: net income attributable to noncontrolling interests		68			48			198			151
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	107		$	(380	)	$	464		$	(155	)
Basic per share	$	0.21		$	(0.76	)	$	0.93		$	(0.31	)
Diluted per share	$	0.21		$	(0.76	)	$	0.93		$	(0.31	)

⁽¹⁾ Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively.

12

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(4) Investments

(a) Net Investment Income

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Fixed maturity securities—taxable	$	640		$	655		$	1,930			1,930
Fixed maturity securities—non-taxable		3			3			9			9
Commercial mortgage loans		78			79			231			237
Restricted commercial mortgage loans related to securitization entities		3			3			7			8
Equity securities		9			8			26			20
Other invested assets		39			34			106			105
Restricted other invested assets related to securitization entities		—			—			1			3
Policy loans		39			38			120			107
Cash, cash equivalents and short-term investments		10			5			26			16
Gross investment income before expenses and fees		821			825			2,456			2,435
Expenses and fees		(24	)		(20	)		(68	)		(62	)
Net investment income	$	797		$	805		$	2,388		$	2,373

(b) Net Investment Gains (Losses)

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Available-for-sale securities:
Realized gains	$	40		$	39		$	177		$	205
Realized losses		(10	)		(24	)		(55	)		(75	)
Net realized gains (losses) on available-for-sale securities		30			15			122			130
Impairments:
Total other-than-temporary impairments		(1	)		(2	)		(4	)		(35	)
Portion of other-than-temporary impairments included in other comprehensive income (loss)		—			—			—			—
Net other-than-temporary impairments		(1	)		(2	)		(4	)		(35	)
Trading securities		—			(4	)		1			40
Commercial mortgage loans		1			(1	)		3			1
Net gains (losses) related to securitization entities		1			2			5			(51	)
Derivative instruments (1)		54			10			93			(52	)
Contingent consideration adjustment		—			—			—			(2	)
Net investment gains (losses)	$	85		$	20		$	220		$	31

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

13

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

We generally intend to hold securities in unrealized loss positions until they recover. However, from time to time, our intent on an individual security may change, based upon market or other unforeseen developments. In such instances, we sell securities in the ordinary course of managing our portfolio to meet diversification, credit quality, yield and liquidity requirements. If a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we determined that we have the intent to sell the securities or it is more likely than not that we will be required to sell the securities prior to recovery. The aggregate fair value of securities sold at a loss during the three months ended September 30, 2017 and 2016 was $286 million and $293 million, respectively, which was approximately 97% and 95%, respectively, of book value. The aggregate fair value of securities sold at a loss during the nine months ended September 30, 2017 and 2016 was $1,390 million and $833 million, respectively, which was approximately 96% and 93%, respectively, of book value.

The following represents the activity for credit losses recognized in net income (loss) on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (loss) (“OCI”) as of and for the periods indicated:

	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Beginning balance	$	38		$	62		$	42		$	64
Additions:
Other-than-temporary impairments not previously recognized		—			—			—			1
Reductions:
Securities sold, paid down or disposed		(5	)		(8	)		(9	)		(11	)
Ending balance	$	33		$	54		$	33		$	54

(c) Unrealized Investment Gains and Losses

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

(Amounts in millions)	September 30, 2017			December 31, 2016
Net unrealized gains (losses) on investment securities:
Fixed maturity securities	$	4,878		$	3,656
Equity securities		49			12
Subtotal (1)		4,927			3,668
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves		(3,134	)		(1,611	)
Income taxes, net		(619	)		(711	)
Net unrealized investment gains (losses)		1,174			1,346
Less: net unrealized investment gains (losses) attributable to noncontrolling interests		66			84
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.	$	1,108		$	1,262

⁽¹⁾ Excludes foreign exchange.

14

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

	As of or for the three months ended September 30,
(Amounts in millions)	2017			2016
Beginning balance	$	1,180		$	2,789
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities		(10	)		228
Adjustment to deferred acquisition costs		(1	)		(17	)
Adjustment to present value of future profits		(3	)		3
Adjustment to sales inducements		—			(6	)
Adjustment to benefit reserves		(92	)		(81	)
Provision for income taxes		36			(41	)
Change in unrealized gains (losses) on investment securities		(70	)		86
Reclassification adjustments to net investment (gains) losses, net of taxes of $10 and $4		(19	)		(9	)
Change in net unrealized investment gains (losses)		(89	)		77
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests		(17	)		6
Ending balance	$	1,108		$	2,860

	As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016
Beginning balance	$	1,262		$	1,254
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities		1,377			3,584
Adjustment to deferred acquisition costs		(1,047	)		(291	)
Adjustment to present value of future profits		(36	)		(26	)
Adjustment to sales inducements		(11	)		(46	)
Adjustment to benefit reserves		(429	)		(612	)
Provision for income taxes		51			(917	)
Change in unrealized gains (losses) on investment securities		(95	)		1,692
Reclassification adjustments to net investment (gains) losses, net of taxes of $41 and $33		(77	)		(62	)
Change in net unrealized investment gains (losses)		(172	)		1,630
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests		(18	)		24
Ending balance	$	1,108		$	2,860

15

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(d) Fixed Maturity and Equity Securities

As of September 30, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

			Gross unrealized gains				Gross unrealized losses
(Amounts in millions)	Amortized cost or cost		Not other-than- temporarily impaired		Other-than- temporarily impaired		Not other-than- temporarily impaired			Other-than- temporarily impaired		Fair value
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	4,893	$	784	$	—	$	(7	)	$	—	$	5,670
State and political subdivisions		2,639		247		—		(26	)		—		2,860
Non-U.S. government		2,143		107		—		(24	)		—		2,226
U.S. corporate:
Utilities		4,382		556		—		(15	)		—		4,923
Energy		2,243		207		—		(10	)		—		2,440
Finance and insurance		6,051		547		—		(11	)		—		6,587
Consumer—non-cyclical		4,330		508		—		(10	)		—		4,828
Technology and communications		2,558		193		—		(11	)		—		2,740
Industrial		1,247		102		—		(3	)		—		1,346
Capital goods		2,067		263		—		(9	)		—		2,321
Consumer—cyclical		1,506		111		—		(6	)		—		1,611
Transportation		1,188		124		—		(6	)		—		1,306
Other		358		24		—		(2	)		—		380
Total U.S. corporate		25,930		2,635		—		(83	)		—		28,482
Non-U.S. corporate:
Utilities		1,022		45		—		(5	)		—		1,062
Energy		1,330		140		—		(7	)		—		1,463
Finance and insurance		2,524		177		—		(5	)		—		2,696
Consumer—non-cyclical		692		27		—		(3	)		—		716
Technology and communications		945		71		—		(2	)		—		1,014
Industrial		979		81		—		(2	)		—		1,058
Capital goods		556		33		—		(2	)		—		587
Consumer—cyclical		518		10		—		(1	)		—		527
Transportation		650		71		—		(3	)		—		718
Other		2,594		193		—		(5	)		—		2,782
Total non-U.S. corporate		11,810		848		—		(35	)		—		12,623
Residential mortgage-backed		3,950		255		14		(10	)		—		4,209
Commercial mortgage-backed		3,346		105		2		(39	)		—		3,414
Other asset-backed		3,052		20		1		(5	)		—		3,068
Total fixed maturity securities		57,763		5,001		17		(229	)		—		62,552
Equity securities		720		59		—		(14	)		—		765
Total available-for-sale securities	$	58,483	$	5,060	$	17	$	(243	)	$	—	$	63,317

16

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of December 31, 2016, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

			Gross unrealized gains				Gross unrealized losses
(Amounts in millions)	Amortized cost or cost		Not other-than- temporarily impaired		Other-than- temporarily impaired		Not other-than- temporarily impaired			Other-than- temporarily impaired		Fair value
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	5,439	$	647	$	—	$	(50	)	$	—	$	6,036
State and political subdivisions		2,515		182		—		(50	)		—		2,647
Non-U.S. government		2,024		101		—		(18	)		—		2,107
U.S. corporate:
Utilities		4,137		454		—		(41	)		—		4,550
Energy		2,167		157		—		(24	)		—		2,300
Finance and insurance		5,719		424		—		(46	)		—		6,097
Consumer—non-cyclical		4,335		433		—		(34	)		—		4,734
Technology and communications		2,473		157		—		(32	)		—		2,598
Industrial		1,161		76		—		(14	)		—		1,223
Capital goods		2,043		228		—		(13	)		—		2,258
Consumer—cyclical		1,455		92		—		(17	)		—		1,530
Transportation		1,121		86		—		(17	)		—		1,190
Other		332		17		—		(1	)		—		348
Total U.S. corporate		24,943		2,124		—		(239	)		—		26,828
Non-U.S. corporate:
Utilities		940		40		—		(11	)		—		969
Energy		1,234		109		—		(12	)		—		1,331
Finance and insurance		2,413		134		—		(9	)		—		2,538
Consumer—non-cyclical		711		17		—		(14	)		—		714
Technology and communications		953		44		—		(10	)		—		987
Industrial		928		39		—		(9	)		—		958
Capital goods		518		21		—		(4	)		—		535
Consumer—cyclical		434		10		—		(2	)		—		442
Transportation		619		65		—		(7	)		—		677
Other		2,967		190		—		(13	)		—		3,144
Total non-U.S. corporate		11,717		669		—		(91	)		—		12,295
Residential mortgage-backed		4,122		259		10		(12	)		—		4,379
Commercial mortgage-backed		3,084		98		3		(56	)		—		3,129
Other asset-backed		3,170		15		1		(35	)		—		3,151
Total fixed maturity securities		57,014		4,095		14		(551	)		—		60,572
Equity securities		628		31		—		(27	)		—		632
Total available-for-sale securities	$	57,642	$	4,126	$	14	$	(578	)	$	—	$	61,204

17

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of September 30, 2017:

	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	$	283	$	(6	)		22	$	31	$	(1	)		4	$	314	$	(7	)		26
State and political subdivisions		213		(5	)		45		230		(21	)		23		443		(26	)		68
Non-U.S. government		922		(23	)		36		24		(1	)		14		946		(24	)		50
U.S. corporate		2,335		(47	)		333		766		(36	)		106		3,101		(83	)		439
Non-U.S. corporate		1,562		(22	)		222		261		(13	)		36		1,823		(35	)		258
Residential mortgage-backed		656		(9	)		80		33		(1	)		28		689		(10	)		108
Commercial mortgage-backed		837		(25	)		120		201		(14	)		30		1,038		(39	)		150
Other asset-backed		736		(4	)		131		173		(1	)		40		909		(5	)		171
Subtotal, fixed maturity securities		7,544		(141	)		989		1,719		(88	)		281		9,263		(229	)		1,270
Equity securities		82		(5	)		142		111		(9	)		89		193		(14	)		231
Total for securities in an unrealized loss position	$	7,626	$	(146	)		1,131	$	1,830	$	(97	)		370	$	9,456	$	(243	)		1,501
% Below cost—fixed maturity securities:
<20% Below cost	$	7,544	$	(141	)		989	$	1,719	$	(88	)		281	$	9,263	$	(229	)		1,270
Total fixed maturity securities		7,544		(141	)		989		1,719		(88	)		281		9,263		(229	)		1,270
% Below cost—equity securities:
<20% Below cost		79		(4	)		139		111		(9	)		89		190		(13	)		228
20%-50% Below cost		3		(1	)		3		—		—			—		3		(1	)		3
Total equity securities		82		(5	)		142		111		(9	)		89		193		(14	)		231
Total for securities in an unrealized loss position	$	7,626	$	(146	)		1,131	$	1,830	$	(97	)		370	$	9,456	$	(243	)		1,501
Investment grade	$	7,437	$	(139	)		984	$	1,656	$	(90	)		287	$	9,093	$	(229	)		1,271
Below investment grade		189		(7	)		147		174		(7	)		83		363		(14	)		230
Total for securities in an unrealized loss position	$	7,626	$	(146	)		1,131	$	1,830	$	(97	)		370	$	9,456	$	(243	)		1,501

18

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, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of September 30, 2017:

	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	$	468	$	(10	)		69	$	104	$	(5	)		17	$	572	$	(15	)		86
Energy		123		(1	)		22		146		(9	)		16		269		(10	)		38
Finance and insurance		542		(7	)		75		154		(4	)		21		696		(11	)		96
Consumer—non-cyclical		325		(7	)		50		84		(3	)		12		409		(10	)		62
Technology and communications		208		(4	)		30		127		(7	)		19		335		(11	)		49
Industrial		55		(1	)		12		56		(2	)		8		111		(3	)		20
Capital goods		274		(8	)		31		8		(1	)		2		282		(9	)		33
Consumer—cyclical		127		(2	)		18		70		(4	)		9		197		(6	)		27
Transportation		190		(5	)		24		17		(1	)		2		207		(6	)		26
Other		23		(2	)		2		—		—			—		23		(2	)		2
Subtotal, U.S. corporate securities		2,335		(47	)		333		766		(36	)		106		3,101		(83	)		439
Non-U.S. corporate:
Utilities		227		(4	)		31		19		(1	)		2		246		(5	)		33
Energy		142		(3	)		21		69		(4	)		11		211		(7	)		32
Finance and insurance		324		(3	)		49		50		(2	)		9		374		(5	)		58
Consumer—non-cyclical		131		(2	)		16		34		(1	)		4		165		(3	)		20
Technology and communications		80		(1	)		17		12		(1	)		2		92		(2	)		19
Industrial		67		(1	)		10		11		(1	)		2		78		(2	)		12
Capital goods		34		(1	)		6		34		(1	)		3		68		(2	)		9
Consumer—cyclical		101		(1	)		15		—		—			—		101		(1	)		15
Transportation		61		(1	)		13		32		(2	)		3		93		(3	)		16
Other		395		(5	)		44		—		—			—		395		(5	)		44
Subtotal, non-U.S. corporate securities		1,562		(22	)		222		261		(13	)		36		1,823		(35	)		258
Total for corporate securities in an unrealized loss position	$	3,897	$	(69	)		555	$	1,027	$	(49	)		142	$	4,924	$	(118	)		697

As indicated in the tables above, the majority of the securities in a continuous unrealized loss position for less than 12 months were investment grade and less than 20% below cost. These unrealized losses were primarily attributable to increase in interest rates, mostly concentrated in our corporate securities. For securities that have been in a continuous unrealized loss position for less than 12 months, the average fair value percentage below cost was approximately 2% as of September 30, 2017.

Fixed Maturity Securities In A Continuous Unrealized Loss Position For 12 Months Or More

Of the $88 million of unrealized losses on fixed maturity securities in a continuous unrealized loss for 12 months or more that were less than 20% below cost, the weighted-average rating was “A” and approximately

19

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

92% of the unrealized losses were related to investment grade securities as of September 30, 2017. These unrealized losses were predominantly attributable to corporate securities including variable rate securities purchased in a higher rate and lower spread environment. The average fair value percentage below cost for these securities was approximately 5% as of September 30, 2017. As of September 30, 2017, the company did not have any fixed maturity securities that have been in a continuous unrealized loss position for 12 months or more with a fair value that was more than 20% below cost.

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2016:

	Less than 12 months							12 months or more							Total
(Dollar amounts in millions)	Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities
Description of Securities
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	1,074	$	(50	)		37	$	—	$	—			—	$	1,074	$	(50	)		37
State and political subdivisions		644		(32	)		109		142		(18	)		12		786		(50	)		121
Non-U.S. government		497		(18	)		51		—		—			—		497		(18	)		51
U.S. corporate		5,221		(190	)		711		662		(49	)		94		5,883		(239	)		805
Non-U.S. corporate		2,257		(66	)		330		408		(25	)		57		2,665		(91	)		387
Residential mortgage-backed		725		(11	)		100		58		(1	)		35		783		(12	)		135
Commercial mortgage-backed		1,091		(55	)		168		25		(1	)		9		1,116		(56	)		177
Other asset-backed		1,069		(13	)		184		328		(22	)		68		1,397		(35	)		252
Subtotal, fixed maturity securities		12,578		(435	)		1,690		1,623		(116	)		275		14,201		(551	)		1,965
Equity securities		119		(9	)		182		114		(18	)		47		233		(27	)		229
Total for securities in an unrealized loss position	$	12,697	$	(444	)		1,872	$	1,737	$	(134	)		322	$	14,434	$	(578	)		2,194
% Below cost—fixed maturity securities:
<20% Below cost	$	12,578	$	(435	)		1,690	$	1,543	$	(90	)		267	$	14,121	$	(525	)		1,957
20%-50% Below cost		—		—			—		80		(26	)		8		80		(26	)		8
Total fixed maturity securities		12,578		(435	)		1,690		1,623		(116	)		275		14,201		(551	)		1,965
% Below cost—equity securities:
<20% Below cost		118		(8	)		167		101		(14	)		38		219		(22	)		205
20%-50% Below cost		1		(1	)		15		13		(4	)		9		14		(5	)		24
Total equity securities		119		(9	)		182		114		(18	)		47		233		(27	)		229
Total for securities in an unrealized loss position	$	12,697	$	(444	)		1,872	$	1,737	$	(134	)		322	$	14,434	$	(578	)		2,194
Investment grade	$	12,339	$	(432	)		1,657	$	1,354	$	(108	)		250	$	13,693	$	(540	)		1,907
Below investment grade		358		(12	)		215		383		(26	)		72		741		(38	)		287
Total for securities in an unrealized loss position	$	12,697	$	(444	)		1,872	$	1,737	$	(134	)		322	$	14,434	$	(578	)		2,194

20

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, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2016:

	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	$	855	$	(39	)		130	$	21	$	(2	)		5	$	876	$	(41	)		135
Energy		190		(5	)		30		276		(19	)		38		466		(24	)		68
Finance and insurance		1,438		(38	)		177		113		(8	)		15		1,551		(46	)		192
Consumer—non-cyclical		921		(34	)		117		—		—			—		921		(34	)		117
Technology and communications		507		(22	)		70		126		(10	)		17		633		(32	)		87
Industrial		226		(7	)		38		77		(7	)		10		303		(14	)		48
Capital goods		322		(12	)		50		6		(1	)		1		328		(13	)		51
Consumer—cyclical		431		(16	)		56		26		(1	)		6		457		(17	)		62
Transportation		302		(16	)		41		17		(1	)		2		319		(17	)		43
Other		29		(1	)		2		—		—			—		29		(1	)		2
Subtotal, U.S. corporate securities		5,221		(190	)		711		662		(49	)		94		5,883		(239	)		805
Non-U.S. corporate:
Utilities		240		(10	)		32		14		(1	)		1		254		(11	)		33
Energy		105		(3	)		18		91		(9	)		16		196		(12	)		34
Finance and insurance		474		(8	)		79		71		(1	)		16		545		(9	)		95
Consumer—non-cyclical		308		(14	)		30		—		—			—		308		(14	)		30
Technology and communications		232		(9	)		34		28		(1	)		2		260		(10	)		36
Industrial		165		(5	)		21		91		(4	)		10		256		(9	)		31
Capital goods		104		(2	)		14		28		(2	)		2		132		(4	)		16
Consumer—cyclical		90		(2	)		17		—		—			—		90		(2	)		17
Transportation		106		(5	)		16		25		(2	)		2		131		(7	)		18
Other		433		(8	)		69		60		(5	)		8		493		(13	)		77
Subtotal, non-U.S. corporate securities		2,257		(66	)		330		408		(25	)		57		2,665		(91	)		387
Total for corporate securities in an unrealized loss position	$	7,478	$	(256	)		1,041	$	1,070	$	(74	)		151	$	8,548	$	(330	)		1,192

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The scheduled maturity distribution of fixed maturity securities as of September 30, 2017 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 or cost		Fair value
Due one year or less	$	1,943	$	1,966
Due after one year through five years		10,901		11,333
Due after five years through ten years		12,363		12,933
Due after ten years		22,208		25,629
Subtotal		47,415		51,861
Residential mortgage-backed		3,950		4,209
Commercial mortgage-backed		3,346		3,414
Other asset-backed		3,052		3,068
Total	$	57,763	$	62,552

As of September 30, 2017, $12,426 million of our investments (excluding mortgage-backed and asset-backed securities) were subject to certain call provisions.

As of September 30, 2017, securities issued by finance and insurance, utilities and consumer—non-cyclical industry groups represented approximately 23%, 15% and 13%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio.

As of September 30, 2017, 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 loan losses.

22

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

	September 30, 2017						December 31, 2016
(Amounts in millions)	Carrying value			% of total			Carrying value			% of total
Property type:
Retail	$	2,220			35	%	$	2,178			36	%
Industrial		1,608			26			1,533			25
Office		1,465			23			1,430			23
Apartments		489			8			455			7
Mixed use		222			4			245			4
Other		277			4			284			5
Subtotal		6,281			100	%		6,125			100	%
Unamortized balance of loan origination fees and costs		(3	)					(2	)
Allowance for losses		(10	)					(12	)
Total	$	6,268					$	6,111

	September 30, 2017						December 31, 2016
(Amounts in millions)	Carrying value			% of total			Carrying value			% of total
Geographic region:
South Atlantic	$	1,620			26	%	$	1,546			25	%
Pacific		1,600			26			1,567			27
Middle Atlantic		904			14			915			15
Mountain		556			9			554			9
West North Central		441			7			435			7
East North Central		386			6			388			6
West South Central		327			5			311			5
New England		237			4			206			3
East South Central		210			3			203			3
Subtotal		6,281			100	%		6,125			100	%
Unamortized balance of loan origination fees and costs		(3	)					(2	)
Allowance for losses		(10	)					(12	)
Total	$	6,268					$	6,111

23

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated:

	September 30, 2017
(Amounts in millions)	31 - 60 days past due			61 - 90 days past due			Greater than 90 days past due			Total past due			Current			Total
Property type:
Retail	$	—		$	—		$	—		$	—		$	2,220		$	2,220
Industrial		—			—			—			—			1,608			1,608
Office		6			—			—			6			1,459			1,465
Apartments		—			—			—			—			489			489
Mixed use		—			—			—			—			222			222
Other		—			—			—			—			277			277
Total recorded investment	$	6		$	—		$	—		$	6		$	6,275		$	6,281
% of total commercial mortgage loans		—	%		—	%		—	%		—	%		100	%		100	%

	December 31, 2016
(Amounts in millions)	31 - 60 days past due			61 - 90 days past due			Greater than 90 days past due			Total past due			Current			Total
Property type:
Retail	$	—		$	—		$	—		$	—		$	2,178		$	2,178
Industrial		1			—			12			13			1,520			1,533
Office		—			—			—			—			1,430			1,430
Apartments		—			—			—			—			455			455
Mixed use		—			—			—			—			245			245
Other		—			—			—			—			284			284
Total recorded investment	$	1		$	—		$	12		$	13		$	6,112		$	6,125
% of total commercial mortgage loans		—	%		—	%		—	%		—	%		100	%		100	%

As of September 30, 2017 and December 31, 2016, we had no commercial mortgage loans that were past due for more than 90 days and still accruing interest. As of September 30, 2017, we had one commercial mortgage loan past due for less than 90 days on non-accrual status due to the borrower filing for bankruptcy in September 2017. We did not have any commercial mortgage loans that were past due for less than 90 days on non-accrual status as of December 31, 2016.

We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of September 30, 2017, none of our commercial mortgage loans were greater than 90 days past due.

During the nine months ended September 30, 2017 and the year ended December 31, 2016, we modified or extended 7 and 16 commercial mortgage loans, respectively, with a total carrying value of $19 million and $85 million, respectively. All of these modifications or extensions were based on current market interest rates, did not result in any forgiveness in the outstanding principal amount owed by the borrower, except during the year ended December 31, 2016, one loan with a carrying value $1 million at the time of modification was considered a troubled debt restructuring. This loan was sold in the fourth quarter of 2016.

24

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the periods indicated:

	Three months ended September 30,				Nine months ended September 30,
(Amounts in millions)	2017		2016		2017			2016
Allowance for credit losses:
Beginning balance	$	10	$	13	$	12		$	15
Charge-offs		—		—		—			(4	)
Recoveries		—		—		—			—
Provision		—		—		(2	)		2
Ending balance	$	10	$	13	$	10		$	13
Ending allowance for individually impaired loans	$	—	$	—	$	—		$	—
Ending allowance for loans not individually impaired that were evaluated collectively for impairment	$	10	$	13	$	10		$	13
Recorded investment:
Ending balance	$	6,281	$	6,032	$	6,281		$	6,032
Ending balance of individually impaired loans	$	—	$	17	$	—		$	17
Ending balance of loans not individually impaired that were evaluated collectively for impairment	$	6,281	$	6,015	$	6,281		$	6,015

As of September 30, 2017, we had no individually impaired commercial mortgage loans. As of September 30, 2016, we had individually impaired commercial mortgage loans included within the retail property type with a recorded investment of $5 million, an unpaid principal balance of $7 million, charge-offs of $2 million and an average recorded investment of $3 million. As of December 31, 2016, we had one individually impaired loan within the industrial property type with a recorded investment of $12 million, an unpaid principal balance of $15 million and charge-offs of $3 million.

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 loan-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 loan-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 loan-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was 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 should not be 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.

25

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

	September 30, 2017
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100% (1)			Total
Property type:
Retail	$	933		$	499		$	788		$	—		$	—		$	2,220
Industrial		747			356			503			2			—			1,608
Office		583			393			473			14			2			1,465
Apartments		236			105			143			5			—			489
Mixed use		101			59			62			—			—			222
Other		68			29			180			—			—			277
Total recorded investment	$	2,668		$	1,441		$	2,149		$	21		$	2		$	6,281
% of total		43	%		23	%		34	%		—	%		—	%		100	%
Weighted-average debt service coverage ratio		2.65			1.85			1.60			0.63			1.04			2.10

⁽¹⁾ Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 103%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

	December 31, 2016
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100% (1)			Total
Property type:
Retail	$	743		$	511		$	913		$	11		$	—		$	2,178
Industrial		605			430			484			14			—			1,533
Office		431			310			656			26			7			1,430
Apartments		188			89			173			5			—			455
Mixed use		67			87			91			—			—			245
Other		60			30			194			—			—			284
Total recorded investment	$	2,094		$	1,457		$	2,511		$	56		$	7		$	6,125
% of total		34	%		24	%		41	%		1	%		—	%		100	%
Weighted-average debt service coverage ratio		2.20			1.88			1.61			0.80			(0.07	)		1.87

⁽¹⁾ Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

26

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

	September 30, 2017
(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	$	43		$	242		$	298		$	999		$	638		$	2,220
Industrial		24			63			180			679			662			1,608
Office		72			67			151			521			654			1,465
Apartments		—			20			75			193			201			489
Mixed use		2			4			26			86			104			222
Other		1			149			15			72			40			277
Total recorded investment	$	142		$	545		$	745		$	2,550		$	2,299		$	6,281
% of total		2	%		9	%		12	%		40	%		37	%		100	%
Weighted-average loan-to-value		57	%		60	%		58	%		57	%		41	%		52	%

	December 31, 2016
(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	$	67		$	204		$	425		$	899		$	583		$	2,178
Industrial		71			113			236			599			514			1,533
Office		91			117			172			609			441			1,430
Apartments		19			22			44			217			153			455
Mixed use		2			9			19			128			87			245
Other		1			148			60			55			20			284
Total recorded investment	$	251		$	613		$	956		$	2,507		$	1,798		$	6,125
% of total		4	%		10	%		16	%		41	%		29	%		100	%
Weighted-average loan-to-value		61	%		60	%		59	%		58	%		45	%		55	%

As of September 30, 2017 and December 31, 2016, we did not have any floating rate commercial mortgage loans.

(f) Restricted Commercial Mortgage Loans Related To Securitization Entities

We have a consolidated securitization entity that holds commercial mortgage loans that are recorded as restricted commercial mortgage loans related to securitization entities.

(g) Restricted Other Invested Assets Related To Securitization Entities

We previously had consolidated securitization entities that held certain investments that were recorded as restricted other invested assets related to securitization entities. The consolidated securitization entities held certain investments as trading securities whereby the changes in fair value were recorded in current period

27

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

income (loss). The trading securities comprised asset-backed securities, including highly rated bonds that were primarily backed by credit card receivables. In 2017, these trading securities were sold as we repositioned these assets in connection with the maturity of the associated liabilities.

(h) Limited Partnerships or Similar Entities

Investments in partnerships or similar entities are generally considered VIEs when the equity group lacks sufficient financial control. Generally, these investments are limited partner or non-managing member equity investments in a widely held fund that is sponsored and managed by a reputable asset manager. We are not the primary beneficiary of any VIE investment in a limited partnership or similar entity. As of September 30, 2017 and December 31, 2016, the total carrying value of these investments was $208 million and $178 million, respectively. Our maximum exposure to loss is equal to the outstanding carrying value and future funding commitments. We have not contributed, and do not plan to contribute, any additional financial or other support outside of what is contractually obligated.

(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 certain 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.

28

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

	Derivative assets					Derivative liabilities
		Fair value						Fair value
(Amounts in millions)	Balance sheet classification	September 30, 2017 (5)		December 31, 2016		Balance sheet classification		September 30, 2017 (5)		December 31, 2016
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps	Other invested assets	$	70	$	237		Other liabilities	$	39	$	203
Foreign currency swaps	Other invested assets		2		4		Other liabilities		—		—
Total cash flow hedges			72		241				39		203
Total derivatives designated as hedges			72		241				39		203
Derivatives not designated as hedges
Interest rate swaps	Other invested assets		—		359		Other liabilities		—		146
Foreign currency swaps	Other invested assets		10		—		Other liabilities		—		5
Credit default swaps related to securitization entities	Restricted other invested assets		—		—		Other liabilities		—		1
Equity index options	Other invested assets		81		72		Other liabilities		—		—
Financial futures	Other invested assets		—		—		Other liabilities		—		—
Equity return swaps	Other invested assets		—		1		Other liabilities		2		1
Other foreign currency contracts	Other invested assets		98		35		Other liabilities		23		27
GMWB embedded derivatives	Reinsurance recoverable(1)		14		16		Policyholder account balances(2)		257		303
Fixed index annuity embedded derivatives	Other assets		—		—		Policyholder account balances(3)		394		344
Indexed universal life embedded derivatives	Reinsurance recoverable		—		—		Policyholder account balances(4)		14		11
Total derivatives not designated as hedges			203		483				690		838
Total derivatives		$	275	$	724			$	729	$	1,041

⁽¹⁾ Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities.

⁽²⁾ Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

⁽³⁾ Represents the embedded derivatives associated with our fixed index annuity liabilities.

⁽⁴⁾ Represents the embedded derivatives associated with our indexed universal life liabilities.

⁽⁵⁾ In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017.

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(Unaudited)

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

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

(Notional in millions)	Measurement		December 31, 2016		Additions		Maturities/ terminations			September 30, 2017
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps		Notional	$	11,570	$	—	$	(306	)	$	11,264
Foreign currency swaps		Notional		22		—		—			22
Total cash flow hedges				11,592		—		(306	)		11,286
Total derivatives designated as hedges				11,592		—		(306	)		11,286
Derivatives not designated as hedges
Interest rate swaps		Notional		4,679		—		—			4,679
Foreign currency swaps		Notional		201		95		(14	)		282
Credit default swaps		Notional		39		—		—			39
Credit default swaps related to securitization entities		Notional		312		—		(200	)		112
Equity index options		Notional		2,396		1,584		(1,484	)		2,496
Financial futures		Notional		1,398		4,300		(4,376	)		1,322
Equity return swaps		Notional		165		186		(258	)		93
Other foreign currency contracts		Notional		3,130		2,163		(691	)		4,602
Total derivatives not designated as hedges				12,320		8,328		(7,023	)		13,625
Total derivatives			$	23,912	$	8,328	$	(7,329	)	$	24,911

(Number of policies)	Measurement		December 31, 2016		Additions		Maturities/ terminations			September 30, 2017
Derivatives not designated as hedges
GMWB embedded derivatives		Policies		33,238		—		(2,127	)		31,111
Fixed index annuity embedded derivatives		Policies		17,549		—		(367	)		17,182
Indexed universal life embedded derivatives		Policies		1,074		1		(66	)		1,009

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 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 investments to fixed rate investments; (ii) various types of interest rate swaps to convert floating rate liabilities into fixed rate liabilities; (iii) receive U.S. dollar fixed on foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments; (iv) forward starting interest rate

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(Unaudited)

swaps to hedge against changes in interest rates associated with future fixed rate bond purchases and/or interest income; (v) forward bond purchase commitments to hedge against the variability in the anticipated cash flows required to purchase future fixed rate bonds; and (vi) other instruments to hedge the cash flows of various forecasted transactions.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2017:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	17		$	34		Net investment income	$	—		Net investment gains (losses)
Foreign currency swaps		(1	)		—		Net investment income		—		Net investment gains (losses)
Total	$	16		$	34			$	—

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2016:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	115		$	27		Net investment income	$	2		Net investment gains (losses)
Interest rate swaps hedging liabilities		(2	)		—		Interest expense		—		Net investment gains (losses)
Foreign currency swaps		(1	)		—		Net investment income		—		Net investment gains (losses)
Total	$	112		$	27			$	2

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

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(Unaudited)

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2017:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	50		$	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		(2	)		—		Interest expense		—		Net investment gains (losses)
Foreign currency swaps		(2	)		—		Net investment income		—		Net investment gains (losses)
Total	$	46		$	97			$	—

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2016:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	839		$	80		Net investment income	$	13		Net investment gains (losses)
Interest rate swaps hedging assets		—			1		Net investment gains (losses)		—		Net investment gains (losses)
Interest rate swaps hedging liabilities		(52	)		—		Interest expense		—		Net investment gains (losses)
Inflation indexed swaps		(5	)		2		Net investment income		—		Net investment gains (losses)
Inflation indexed swaps		—			7		Net investment gains (losses)		—		Net investment gains (losses)
Foreign currency swaps		(2	)		—		Net investment income		—		Net investment gains (losses)
Total	$	780		$	90			$	13

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

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(Unaudited)

The following tables provide a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” for the periods indicated:

	Three months ended September 30,
(Amounts in millions)	2017			2016
Derivatives qualifying as effective accounting hedges as of July 1	$	2,064		$	2,439
Current period increases (decreases) in fair value, net of deferred taxes of $(6) and $(40)		10			72
Reclassification to net (income), net of deferred taxes of $12 and $9		(22	)		(18	)
Derivatives qualifying as effective accounting hedges as of September 30	$	2,052		$	2,493

	Nine months ended September 30,
(Amounts in millions)	2017			2016
Derivatives qualifying as effective accounting hedges as of January 1	$	2,085		$	2,045
Current period increases (decreases) in fair value, net of deferred taxes of $(17) and $(273)		29			507
Reclassification to net (income), net of deferred taxes of $35 and $31		(62	)		(59	)
Derivatives qualifying as effective accounting hedges as of September 30	$	2,052		$	2,493

The total of derivatives designated as cash flow hedges of $2,052 million, net of taxes, recorded in stockholders’ equity as of September 30, 2017 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, $95 million, net of taxes, is expected to be reclassified to net income (loss) in the next 12 months. Actual amounts may vary from this amount as a result of market conditions. All forecasted transactions associated with qualifying cash flow hedges are expected to occur by 2057. During the nine months ended September 30, 2017, there was approximately $2 million reclassified to net income (loss) in connection with forecasted transactions that were no longer considered probable of occurring.

Derivatives Not Designated As Hedges

We also enter into certain non-qualifying derivative instruments such as: (i) interest rate swaps and financial futures to mitigate interest rate risk as part of managing regulatory capital positions; (ii) credit default swaps to enhance yield and reproduce characteristics of investments with similar terms and credit risk; (iii) equity index options, equity return swaps, interest rate swaps and financial futures to mitigate the risks associated with liabilities that have guaranteed minimum benefits, fixed index annuities and indexed universal life; (iv) interest rate swaps where the hedging relationship does not qualify for hedge accounting; (v) credit default swaps to mitigate loss exposure to certain credit risk; (vi) foreign currency swaps, options and forward contracts to mitigate currency risk associated with non-functional currency investments held by certain foreign subsidiaries and future dividends or other cash flows from certain foreign subsidiaries to our holding company; and (vii) equity index options to mitigate certain macroeconomic risks associated with certain foreign subsidiaries. Additionally, we provide GMWBs on certain variable annuities that are required to be bifurcated as embedded derivatives. We also offer fixed index annuity and indexed universal life products and have reinsurance agreements with certain features that are required to be bifurcated as embedded derivatives.

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(Unaudited)

We also have derivatives related to securitization entities where we were required to consolidate the related securitization entity as a result of our involvement in the structure. The counterparties for these derivatives typically only have recourse to the securitization entity. The interest rate swaps used for these entities are typically used to effectively convert the interest payments on the assets of the securitization entity to the same basis as the interest rate on the borrowings issued by the securitization entity. Credit default swaps are utilized in certain securitization entities to enhance the yield payable on the borrowings issued by the securitization entity and also include a settlement feature that allows the securitization entity to provide the par value of assets in the securitization entity for the amount of any losses incurred under the credit default swap.

The following tables provide 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 September 30,						Classification of gain (loss) recognized in net income (loss)
(Amounts in millions)	2017			2016
Interest rate swaps	$	1		$	(1	)	Net investment gains (losses)
Credit default swaps related to securitization entities		2			2		Net investment gains (losses)
Equity index options		16			9		Net investment gains (losses)
Financial futures		(17	)		(35	)	Net investment gains (losses)
Equity return swaps		(5	)		(9	)	Net investment gains (losses)
Other foreign currency contracts		40			(2	)	Net investment gains (losses)
Foreign currency swaps		8			(1	)	Net investment gains (losses)
GMWB embedded derivatives		30			60		Net investment gains (losses)
Fixed index annuity embedded derivatives		(21	)		(16	)	Net investment gains (losses)
Indexed universal life embedded derivatives		2			3		Net investment gains (losses)
Total derivatives not designated as hedges	$	56		$	10

	Nine months ended September 30,						Classification of gain (loss) recognized in net income (loss)
(Amounts in millions)	2017			2016
Interest rate swaps	$	2		$	7		Net investment gains (losses)
Interest rate swaps related to securitization entities		—			(10	)	Net investment gains (losses)
Credit default swaps related to securitization entities		6			16		Net investment gains (losses)
Equity index options		42			5		Net investment gains (losses)
Financial futures		(25	)		(9	)	Net investment gains (losses)
Equity return swaps		(19	)		(2	)	Net investment gains (losses)
Other foreign currency contracts		66			(6	)	Net investment gains (losses)
Foreign currency swaps		13			6		Net investment gains (losses)
GMWB embedded derivatives		64			(58	)	Net investment gains (losses)
Fixed index annuity embedded derivatives		(57	)		(22	)	Net investment gains (losses)
Indexed universal life embedded derivatives		5			6		Net investment gains (losses)
Total derivatives not designated as hedges	$	97		$	(67	)

Derivative Counterparty Credit Risk

Most of our derivative arrangements require the posting of collateral by the counterparty upon meeting certain net exposure thresholds. For derivatives related to securitization entities, there are no arrangements that require either party to provide collateral and the recourse of the derivative counterparty is typically limited to the assets held by the securitization entity and there is no recourse to any entity other than the securitization entity.

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(Unaudited)

The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated:

	September 30, 2017									December 31, 2016
(Amounts in millions)	Derivatives assets (1)			Derivatives liabilities (2)			Net derivatives			Derivatives assets (1)			Derivatives liabilities (2)			Net derivatives
Amounts presented in the balance sheet:
Gross amounts recognized	$	262		$	66		$	196		$	724		$	387		$	337
Gross amounts offset in the balance sheet		—			—			—			—			—			—
Net amounts presented in the balance sheet		262			66			196			724			387			337
Gross amounts not offset in the balance sheet:
Financial instruments (3)		(24	)		(24	)		—			(172	)		(172	)		—
Collateral received		(164	)		—			(164	)		(467	)		—			(467	)
Collateral pledged		—			(301	)		301			—			(557	)		557
Over collateralization		8			259			(251	)		1			344			(343	)
Net amount	$	82		$	—		$	82		$	86		$	2		$	84

⁽¹⁾ Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively.

⁽²⁾ Included $2 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2017 and December 31, 2016, respectively.

⁽³⁾  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.

Except for derivatives related to securitization entities, almost all of our master swap agreements contain credit downgrade provisions that allow either party to assign or terminate derivative transactions if the other party’s long-term unsecured debt rating or financial strength rating is below the limit defined in the applicable agreement. If downgrade provisions had been triggered as a result of downgrades of our counterparties, we could have claimed up to $82 million and $86 million as of September 30, 2017 and December 31, 2016, respectively, or have been required to disburse up to $2 million as of December 31, 2016. There were no amounts that we would have been required to disburse as of September 30, 2017 . The chart above excludes embedded derivatives and derivatives related to securitization entities as those derivatives are not subject to master netting arrangements.

Credit Derivatives

We sell protection under single name credit default swaps and credit default swap index tranches in combination with purchasing securities to replicate characteristics of similar investments based on the credit quality and term of the credit default swap. Credit default triggers for both indexed reference entities and single name reference entities follow the Credit Derivatives Physical Settlement Matrix published by the International Swaps and Derivatives Association. Under these terms, credit default triggers are defined as bankruptcy, failure to pay or restructuring, if applicable. Our maximum exposure to credit loss equals the notional value for credit

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(Unaudited)

default swaps. In the event of default for credit default swaps, we are typically required to pay the protection holder the full notional value less a recovery rate determined at auction.

In addition to the credit derivatives discussed above, we also have credit derivative instruments related to securitization entities that we consolidate. These derivatives represent a customized index of reference entities with specified attachment points for certain derivatives. The credit default triggers are similar to those described above. In the event of default, the securitization entity will provide the counterparty with the par value of assets held in the securitization entity for the amount of incurred loss on the credit default swap. The maximum exposure to loss for the securitization entity is the notional value of the derivatives. Certain losses on these credit default swaps would be absorbed by the third-party noteholders of the securitization entity and the remaining losses on the credit default swaps would be absorbed by our portion of the notes issued by the securitization entity.

The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated:

	September 30, 2017						December 31, 2016
(Amounts in millions)	Notional value		Assets		Liabilities		Notional value		Assets		Liabilities
Investment grade
Matures in less than one year	$	39	$	—	$	—	$	—	$	—	$	—
Matures after one year through five years		—		—		—		39		—		—
Total credit default swaps on single name reference entities	$	39	$	—	$	—	$	39	$	—	$	—

The following table sets forth our credit default swaps where we sell protection on credit default swap index tranches and the fair values as of the dates indicated:

	September 30, 2017						December 31, 2016
(Amounts in millions)	Notional value		Assets		Liabilities		Notional value		Assets		Liabilities
Customized credit default swap index tranches related to securitization entities:
Portion backing third-party borrowings maturing 2017 (1)	$	12	$	—	$	—	$	12	$	—	$	—
Portion backing our interest maturing 2017 (2)		100		—				300		—		1
Total customized credit default swap index tranches related to securitization entities		112		—		—		312		—		1
Total credit default swaps on index tranches	$	112	$	—	$	—	$	312	$	—	$	1

⁽¹⁾ Original notional value was $39 million.

⁽²⁾ Original notional value was $300 million.

(6) Fair Value of Financial Instruments

Assets and liabilities that are reflected in the accompanying unaudited condensed consolidated financial statements at fair value are not included in the following disclosure of fair value. Such items include cash and

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(Unaudited)

cash equivalents, short-term investments, investment securities, separate accounts, securities held as collateral and derivative instruments. Other financial assets and liabilities—those not carried at fair value—are discussed below. Apart from certain of our borrowings and certain marketable securities, few of the instruments discussed below are actively traded and their fair values must often be determined using 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.

The basis on which we estimate fair value is as follows:

Commercial mortgage loans. Based on recent transactions and/or discounted future cash flows, using current market rates. Given the limited availability of data related to transactions for similar instruments, we typically classify these loans as Level 3.

Restricted commercial mortgage loans. Based on recent transactions and/or discounted future cash flows, using current market rates. Given the limited availability of data related to transactions for similar instruments, we typically classify these loans as Level 3.

Other invested assets. Primarily represents limited partnerships accounted for under the cost method. 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. Cost method limited partnerships typically include significant unobservable inputs as a result of being relatively illiquid with limited market activity for similar instruments and are classified as Level 3.

Long-term borrowings. We utilize available market data when determining fair value of long-term borrowings issued in the United States and Canada, which includes data on recent trades for the same or similar financial instruments. Accordingly, these instruments are classified as Level 2 measurements. In cases where market data is not available such as our long-term borrowings in Australia, we use third-party broker provided prices (“broker quotes”) for which we consider the valuation methodology utilized by the third party, but the valuation typically includes significant unobservable inputs. Accordingly, we classify these borrowings where fair value is based on our consideration of broker quotes as Level 3 measurements.

Non-recourse funding obligations. We use an internal model to determine fair value using the current floating rate coupon and expected life/final maturity of the instrument discounted using the floating rate index and current market spread assumption, which is estimated based on recent transactions for these instruments or similar instruments as well as other market information or broker provided data. Given these instruments are private and very little market activity exists, our current market spread assumption is considered to have significant unobservable inputs in calculating fair value and, therefore, results in the fair value of these instruments being classified as Level 3.

Borrowings related to securitization entities. Based on market quotes or comparable market transactions. Some of these borrowings are publicly traded debt securities and are classified as Level 2. Certain borrowings are not publicly traded and are classified as Level 3.

Investment contracts. Based on expected future cash flows, discounted at current market rates for annuity contracts or institutional products. Given the significant unobservable inputs associated with policyholder

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(Unaudited)

behavior and current market rate assumptions used to discount the expected future cash flows, we classify these instruments as Level 3 except for certain funding agreement-backed notes that are traded in the marketplace as a security and are classified as Level 2.

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

	September 30, 2017
	Notional amount			Carrying amount		Fair value
(Amounts in millions)						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans	$		(1)	$	6,268	$	6,550	$	—	$	—	$	6,550
Restricted commercial mortgage loans			(1)		111		122		—		—		122
Other invested assets			(1)		217		243		—		—		243
Liabilities:
Long-term borrowings			(1)		4,224		3,742		—		3,583		159
Non-recourse funding obligations			(1)		310		195		—		—		195
Borrowings related to securitization entities			(1)		47		48		—		48		—
Investment contracts			(1)		15,163		15,705		—		5		15,700
Other firm commitments:
Commitments to fund limited partnerships		319			—		—		—		—		—
Ordinary course of business lending commitments		61			—		—		—		—		—

	December 31, 2016
	Notional amount			Carrying amount		Fair value
(Amounts in millions)						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans	$		(1)	$	6,111	$	6,247	$	—	$	—	$	6,247
Restricted commercial mortgage loans			(1)		129		141		—		—		141
Other invested assets			(1)		459		473		—		352		121
Liabilities:
Long-term borrowings			(1)		4,180		3,582		—		3,440		142
Non-recourse funding obligations			(1)		310		186		—		—		186
Borrowings related to securitization entities			(1)		62		65		—		65		—
Investment contracts			(1)		16,437		16,993		—		5		16,988
Other firm commitments:
Commitments to fund limited partnerships		201			—		—		—		—		—
Ordinary course of business lending commitments		73			—		—		—		—		—

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

Recurring Fair Value Measurements

We have fixed maturity, short-term investments, equity and trading securities, derivatives, embedded derivatives, securities held as collateral, separate account assets and certain other financial instruments, which are

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(Unaudited)

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, short-term investments, equity and trading securities

The fair value of fixed maturity, short-term investments, equity and trading securities are estimated primarily based on information derived from third-party pricing services (“pricing services”), internal models and/or broker quotes, which 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, a security is valued using that market information for similar securities, which is also a market approach. When market information is not available for a specific security 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. In addition, a combination of the results from market and income approaches may be used to estimate fair value. These valuation techniques may change from period to period, based on the relevance and availability of market data.

We utilize certain third-party data providers when determining fair value. We consider information obtained from pricing services as well as broker quotes in our determination of fair value. Additionally, we utilize internal models to determine the valuation of securities using an income approach where the inputs are based on third-party provided market inputs. 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. We also use various methods to obtain an understanding of the valuation methodologies and procedures used by third-party data providers to ensure sufficient understanding to evaluate the valuation data received, including an understanding of the assumptions and inputs utilized to determine the appropriate fair value. For pricing services, we analyze the prices provided by our primary pricing services to other readily available pricing services and perform a detailed review of the assumptions and inputs from each pricing service to determine the appropriate fair value when pricing differences exceed certain thresholds. We evaluate changes in fair value that are greater than certain pre-defined thresholds each month to further aid in our review of the accuracy of fair value measurements and our understanding of changes in fair value, with more detailed reviews performed by the asset managers responsible for the related asset class associated with the security being reviewed. A pricing committee provides additional oversight and guidance in the evaluation and review of the pricing methodologies used to value our investment portfolio.

In general, we first obtain valuations from pricing services. If a price is not supplied by a pricing service, we will typically seek a broker quote for public or private fixed maturity securities. In certain instances, we utilize price caps for broker quoted securities where the estimated market yield results in a valuation that may exceed the amount that we believe would be received in a market transaction. 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 identical securities are not readily observable and these securities are not typically valued by pricing services. 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 pricing services, we obtain an understanding of the pricing methodologies and procedures for each type of instrument. Additionally, on a monthly basis we review a sample of securities, examining the pricing service’s

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assumptions to determine if we agree with the service’s derived price. When available, we also evaluate the prices sampled as compared to other public prices. If a variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. In general, a pricing service does not provide a price for a security if sufficient information is not readily available to determine fair value or if such security is not in the specific sector or class covered by a particular pricing service. 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.

For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction and value all private fixed maturity securities at par that have less than 12 months to maturity. 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. To evaluate the reasonableness of the internal model, we review a sample of private fixed maturity securities each month. In that review we compare the modeled prices to the prices of similar public securities in conjunction with analysis on current market indicators. If a pricing variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. At the end of each month, all internally modeled prices are compared to the prior month prices with an evaluation of all securities with a month-over-month change greater than a pre-defined threshold. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs. We classify private securities without an external rating and public bond spread as Level 3. In general, increases (decreases) in credit spreads will decrease (increase) the fair value for our fixed maturity securities.

For broker quotes, we consider the valuation methodology utilized by the third party and analyze a sample each month to assess reasonableness given then-current market conditions. Additionally, for broker quotes on certain structured securities, we validate prices received against other publicly available pricing sources. Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements.

For remaining securities priced using internal models, we determine fair value using an income approach. We analyze a sample each month to assess reasonableness given then-current market conditions. 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.

A summary of the inputs used 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.

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Separate account assets

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

Level 2 measurements

Fixed maturity securities

• Third-party pricing services: In estimating the fair value of fixed maturity securities, approximately 91% of our portfolio is priced using third-party pricing sources. 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 third-party 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 third-party 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 third-party pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of September 30, 2017:

(Amounts in millions)	Fair value		Primary methodologies	Significant inputs
U.S. government, agencies and government-sponsored enterprises	$	5,669	Price quotes from trading desk, broker feeds	Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread
State and political subdivisions	$	2,816	Multi-dimensional attribute-based modeling systems, third-party pricing vendors	Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes
Non-U.S. government	$	2,210	Matrix pricing, spread priced to benchmark curves, 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
U.S. corporate	$	25,290	Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, 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	$	10,711	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	$	4,123	OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced	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	$	3,392	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 swaps curves, TRACE reports
Other asset-backed	$	2,843	Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models	Spreads to daily updated swaps 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 state and political subdivisions, non-U.S. government, U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities were $7 million, $16 million, $865 million and $461 million, respectively, as of September 30, 2017. 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.

Securities lending collateral

The fair value of securities held as collateral is primarily based on Level 2 inputs from market information for the collateral that is held on our behalf by the custodian. We determine fair value after considering prices obtained by third-party pricing services.

Short-term Investments

Short-term investments primarily include commercial paper and other highly liquid debt instruments and are classified as Level 2. We determine fair value after considering prices obtained by third-party pricing services.

Level 3 measurements

Fixed maturity securities

• Internal models: A portion of our U.S. government, agencies and government-sponsored enterprises, U.S. corporate, non-U.S. corporate, residential mortgage-backed and other asset-backed securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for 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 private fixed maturity securities are valued using an internal model using market observable inputs such as interest rate yield curve, as well as published credit spreads for similar securities where there are no external ratings of the instrument and include a significant unobservable input. 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 identical assets, or 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 $3,521 million as of September 30, 2017.

• Broker quotes: A portion of our state and political subdivisions, 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

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market knowledge to provide a reasonable price for securities not routinely priced by third-party 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 $628 million as of September 30, 2017.

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.

Restricted other invested assets related to securitization entities

We previously held trading securities related to securitization entities that were classified as restricted other invested assets and were carried at fair value. The trading securities represented asset-backed securities. In 2017, these trading securities were sold as we repositioned these assets in connection with the maturity of the associated liabilities. The valuation for trading securities was determined using a market approach and/or an income approach depending on the availability of information. For certain highly rated asset-backed securities, there was observable market information for transactions of the same or similar instruments, which was provided to us by a third-party pricing service and was classified as Level 2. For certain securities that are not actively traded, we determined fair value after considering third-party broker provided prices or discounted expected cash flows using current yields for similar securities and classified these valuations as Level 3.

GMWB embedded derivatives

We are required to bifurcate an embedded derivative for certain features associated with annuity products and related reinsurance agreements where we provide a GMWB to the policyholder and are required to record the GMWB embedded derivative at fair value. The valuation of our GMWB embedded derivative is based on an income approach that incorporates inputs such as forward interest rates, equity index volatility, equity index and fund correlation, and policyholder assumptions such as utilization, lapse and mortality. In addition to these inputs, we also consider risk and expense margins when determining the projected cash flows that would be determined by another market participant. While the risk and expense margins are considered in determining fair value, these inputs do not have a significant impact on the valuation. We determine fair value using an internal model based on the various inputs noted above. The resulting fair value measurement from the model is reviewed by the product actuarial, risk and finance professionals each reporting period with changes in fair value also being compared to changes in derivatives and other instruments used to mitigate changes in fair value from certain market risks, such as equity index volatility and interest rates.

For GMWB liabilities, non-performance risk is integrated into the discount rate. Our discount rate used to determine fair value of our GMWB liabilities includes market credit spreads above U.S. Treasury rates to reflect an adjustment for the non-performance risk of the GMWB liabilities. As of September 30, 2017 and December 31, 2016, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $65 million and $73 million, respectively.

To determine the appropriate discount rate to reflect the non-performance risk of the GMWB liabilities, we evaluate the non-performance risk in our liabilities based on a hypothetical exit market transaction as there is no exit market for these types of liabilities. A hypothetical exit market can be viewed as a hypothetical transfer of the liability to another similarly rated insurance company which would closely resemble a reinsurance transaction. Another hypothetical exit market transaction can be viewed as a hypothetical transaction from the perspective of the GMWB policyholder. In determining the appropriate discount rate to incorporate non-performance risk of the GMWB liabilities, we also considered the impacts of state guarantees embedded in the related insurance product as a form of inseparable third-party guarantee. We believe that a hypothetical exit market participant would use a similar discount rate as described above to value the liabilities.

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For equity index volatility, we determine the projected equity market volatility using both historical volatility and projected equity market volatility with more significance being placed on projected near-term volatility and recent historical data. Given the different attributes and market characteristics of GMWB liabilities compared to equity index options in the derivative market, the equity index volatility assumption for GMWB liabilities may be different from the volatility assumption for equity index options, especially for the longer dated points on the curve.

Equity index and fund correlations are determined based on historical price observations for the fund and equity index.

For policyholder assumptions, we use our expected lapse, mortality and utilization assumptions and update these assumptions for our actual experience, as necessary. For our lapse assumption, we adjust our base lapse assumption by policy based on a combination of the policyholder’s current account value and GMWB benefit.

We classify the GMWB valuation as Level 3 based on having significant unobservable inputs, with equity index volatility and non-performance risk being considered the more significant unobservable inputs. As equity index volatility increases, the fair value of the GMWB liabilities will increase. Any increase in non-performance risk would increase the discount rate and would decrease the fair value of the GMWB liability. Additionally, we consider lapse and utilization assumptions to be significant unobservable inputs. An increase in our lapse assumption would decrease the fair value of the GMWB liability, whereas an increase in our utilization rate would increase the fair value.

Fixed index annuity embedded derivatives

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

Indexed universal life embedded derivatives

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

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Borrowings related to securitization entities

We record certain borrowings related to securitization entities at fair value. The fair value of these borrowings is determined using either a market approach or income approach, depending on the instrument and availability of market information. Given the unique characteristics of the securitization entities that issued these borrowings as well as the lack of comparable instruments, we determine fair value considering the valuation of the underlying assets held by the securitization entities and any derivatives, as well as any unique characteristics of the borrowings that may impact the valuation. After considering all relevant inputs, we determine fair value of the borrowings using the net valuation of the underlying assets and derivatives that are backing the borrowings. Accordingly, these instruments are classified as Level 3. Increases in the valuation of the underlying assets or decreases in the derivative liabilities will result in an increase in the fair value of these borrowings.

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 counterparty for our derivative assets or liabilities. We determine fair value for our derivatives using an income approach with internal models based on relevant market inputs for each derivative instrument. We also compare the fair value determined using our internal model to the valuations provided by our derivative counterparties with any significant differences or changes in valuation being evaluated further by our derivatives professionals that are familiar with the instrument and market inputs used in the valuation.

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. For certain other swaps, there are features that provide an option to the counterparty to terminate the swap at specified dates. The interest rate volatility input used to value these options would be considered a significant unobservable input and results in the fair value measurement of the derivative being classified as Level 3. These options to terminate the swap by the counterparty are based on forward interest rate swap curves and volatility. As interest rate volatility increases, our valuation of the derivative changes unfavorably.

Interest rate swaps related to securitization entities. The valuation of interest rate swaps related to securitization entities 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.

Inflation indexed swaps. The valuation of inflation indexed swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve, the current consumer price index and the forward consumer price index curve, which are generally considered observable inputs, and results 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 an observable input, and results in the derivative being classified as Level 2.

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Credit default swaps. We have both single name credit default swaps and index tranche credit default swaps. For single name credit default swaps, we utilize an income approach to determine fair value based on using current market information for the credit spreads of the reference entity, which is considered observable inputs based on the reference entities of our derivatives and results in these derivatives being classified as Level 2. For index tranche credit default swaps, we utilize an income approach that utilizes current market information related to credit spreads and expected defaults and losses associated with the reference entities that comprise the respective index associated with each derivative. There are significant unobservable inputs associated with the timing and amount of losses from the reference entities as well as the timing or amount of losses, if any, that will be absorbed by our tranche. Accordingly, the index tranche credit default swaps are classified as Level 3. As credit spreads widen for the underlying issuers comprising the index, the change in our valuation of these credit default swaps will be unfavorable.

Credit default swaps related to securitization entities. Credit default swaps related to securitization entities represent customized index tranche credit default swaps and are valued using a similar methodology as described above for index tranche credit default swaps. We determine fair value of these credit default swaps after considering both the valuation methodology described above as well as the valuation provided by the derivative counterparty. In addition to the valuation methodology and inputs described for index tranche credit default swaps, these customized credit default swaps contain a feature that permits the securitization entity to provide the par value of underlying assets in the securitization entity to settle any losses under the credit default swap. The valuation of this settlement feature is dependent upon the valuation of the underlying assets and the timing and amount of any expected loss on the credit default swap, which is considered a significant unobservable input. Accordingly, these customized index tranche credit default swaps related to securitization entities are classified as Level 3. As credit spreads widen for the underlying issuers comprising the customized index, the change in our valuation of these credit default swaps will be unfavorable.

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 rate volatility and time value component associated with the optionality in the derivative, which are considered significant unobservable inputs in most instances. 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 equity index volatility increases, our valuation of these options changes favorably.

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.

Equity return swaps. The valuation of equity return swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and underlying equity index values, which are generally considered observable inputs, and results in the derivative being classified as Level 2.

Forward bond purchase commitments. The valuation of forward bond purchase commitments is determined using an income approach. The primary input into the valuation represents the current bond prices and interest rates, which are generally considered an observable input, and results in the derivative being classified as Level 2.

Other foreign currency contracts. We have certain foreign currency options classified as other foreign currency contracts. The valuation of foreign currency options is determined using an income approach. The

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primary inputs into the valuation represent the forward interest rate swap curve, foreign currency exchange rates, forward interest rate, foreign currency exchange rate volatility, foreign equity index volatility and time value component associated with the optionality in the derivative. As a result of the significant unobservable inputs associated with the forward interest rate, foreign currency exchange rate volatility and foreign equity index volatility inputs, the derivative is classified as Level 3. As foreign currency exchange rate volatility and foreign equity index volatility increases, the change in our valuation of these options will be favorable for purchase options and unfavorable for options sold. We also have foreign currency forward contracts where the valuation 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.

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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:

	September 30, 2017
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	5,670	$	—	$	5,669	$	1
State and political subdivisions		2,860		—		2,823		37
Non-U.S. government		2,226		—		2,226		—
U.S. corporate:
Utilities		4,923		—		4,261		662
Energy		2,440		—		2,282		158
Finance and insurance		6,587		—		5,917		670
Consumer—non-cyclical		4,828		—		4,701		127
Technology and communications		2,740		—		2,688		52
Industrial		1,346		—		1,299		47
Capital goods		2,321		—		2,203		118
Consumer—cyclical		1,611		—		1,349		262
Transportation		1,306		—		1,245		61
Other		380		—		210		170
Total U.S. corporate		28,482		—		26,155		2,327
Non-U.S. corporate:
Utilities		1,062		—		703		359
Energy		1,463		—		1,286		177
Finance and insurance		2,696		—		2,527		169
Consumer—non-cyclical		716		—		587		129
Technology and communications		1,014		—		985		29
Industrial		1,058		—		919		139
Capital goods		587		—		437		150
Consumer—cyclical		527		—		458		69
Transportation		718		—		537		181
Other		2,782		—		2,733		49
Total non-U.S. corporate		12,623		—		11,172		1,451
Residential mortgage-backed		4,209		—		4,123		86
Commercial mortgage-backed		3,414		—		3,392		22
Other asset-backed		3,068		—		2,843		225
Total fixed maturity securities		62,552		—		58,403		4,149
Equity securities		765		644		77		44
Other invested assets:
Derivative assets:
Interest rate swaps		70		—		70		—
Foreign currency swaps		12		—		12		—
Equity index options		81		—		—		81
Other foreign currency contracts		98		—		98		—
Total derivative assets		261		—		180		81
Securities lending collateral		237		—		237		—
Short-term investments		787		—		787		—
Total other invested assets		1,285		—		1,204		81
Reinsurance recoverable (1)		14		—		—		14
Separate account assets		7,264		7,264		—		—
Total assets	$	71,880	$	7,908	$	59,684	$	4,288

⁽¹⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

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	December 31, 2016
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	6,036	$	—	$	6,034	$	2
State and political subdivisions		2,647		—		2,610		37
Non-U.S. government		2,107		—		2,107		—
U.S. corporate:
Utilities		4,550		—		3,974		576
Energy		2,300		—		2,090		210
Finance and insurance		6,097		—		5,311		786
Consumer—non-cyclical		4,734		—		4,613		121
Technology and communications		2,598		—		2,544		54
Industrial		1,223		—		1,175		48
Capital goods		2,258		—		2,106		152
Consumer—cyclical		1,530		—		1,272		258
Transportation		1,190		—		1,051		139
Other		348		—		205		143
Total U.S. corporate		26,828		—		24,341		2,487
Non-U.S. corporate:
Utilities		969		—		583		386
Energy		1,331		—		1,125		206
Finance and insurance		2,538		—		2,356		182
Consumer—non-cyclical		714		—		575		139
Technology and communications		987		—		920		67
Industrial		958		—		849		109
Capital goods		535		—		366		169
Consumer—cyclical		442		—		373		69
Transportation		677		—		496		181
Other		3,144		—		3,119		25
Total non-U.S. corporate		12,295		—		10,762		1,533
Residential mortgage-backed		4,379		—		4,336		43
Commercial mortgage-backed		3,129		—		3,075		54
Other asset-backed		3,151		—		3,006		145
Total fixed maturity securities		60,572		—		56,271		4,301
Equity securities		632		551		34		47
Other invested assets:
Trading securities		259		—		259		—
Derivative assets:
Interest rate swaps		596		—		596		—
Foreign currency swaps		4		—		4		—
Equity index options		72		—		—		72
Equity return swaps		1		—		1		—
Other foreign currency contracts		35		—		32		3
Total derivative assets		708		—		633		75
Securities lending collateral		534		—		534		—
Total other invested assets		1,501		—		1,426		75
Restricted other invested assets related to securitization entities		312		—		181		131
Reinsurance recoverable (1)		16		—		—		16
Separate account assets		7,299		7,299		—		—
Total assets	$	70,332	$	7,850	$	57,912	$	4,570

⁽¹⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

50

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers between levels at the beginning fair value for the reporting period in which the changes occur. Given the types of assets classified as Level 1, which primarily represents mutual fund investments, we typically do not have any transfers between Level 1 and Level 2 measurement categories and did not have any such transfers during any period presented.

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 third-party pricing sources to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3.

51

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

(Amounts in millions)	Beginning balance as of July 1, 2017		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2017		Total gains (losses) included in net income (loss) attributable to assets still held
			Included in net income (loss)			Included in OCI
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	1	$	—		$	—		$	—	$	—		$	—	$	—		$	—	$	—		$	1	$	—
State and political subdivisions		37		1			(1	)		—		—			—		—			—		—			37		1
U.S. corporate:
Utilities		638		—			—			26		—			—		(2	)		—		—			662		—
Energy		160		—			—			—		—			—		(2	)		—		—			158		—
Finance and insurance		861		3			(52	)		22		(14	)		—		(157	)		8		(1	)		670		2
Consumer—non-cyclical		122		—			1			4		—			—		—			—		—			127		—
Technology and communications		58		1			(3	)		—		—			—		(1	)		—		(3	)		52		1
Industrial		61		—			—			—		—			—		—			—		(14	)		47		—
Capital goods		118		1			—			—		—			—		(1	)		—		—			118		1
Consumer—cyclical		266		—			—			—		—			—		(2	)		—		(2	)		262		—
Transportation		100		16			(10	)		—		—			—		(45	)		—		—			61		—
Other		176		—			—			—		(4	)		—		(2	)		—		—			170		—
Total U.S. corporate		2,560		21			(64	)		52		(18	)		—		(212	)		8		(20	)		2,327		4
Non-U.S. corporate:
Utilities		359		—			—			—		—			—		—			—		—			359		—
Energy		177		—			1			—		—			—		(1	)		—		—			177		—
Finance and insurance		172		1			1			—		—			—		(5	)		—		—			169		—
Consumer—non-cyclical		129		—			—			—		—			—		—			—		—			129		—
Technology and communications		48		1			1			—		(21	)		—		—			—		—			29		—
Industrial		112		—			—			13		—			—		—			14		—			139		—
Capital goods		149		—			1			—		—			—		—			—		—			150		—
Consumer—cyclical		67		—			—			—		—			—		—			2		—			69		—
Transportation		190		—			1			—		—			—		(10	)		—		—			181		—
Other		41		(2	)		1			—		(2	)		—		—			11		—			49		—
Total non-U.S. corporate		1,444		—			6			13		(23	)		—		(16	)		27		—			1,451		—
Residential mortgage-backed		73		—			—			22		—			—		(1	)		—		(8	)		86		—
Commercial mortgage-backed		52		(1	)		(2	)		14		—			—		—			—		(41	)		22		—
Other asset-backed		150		(1	)		1			52		—			—		(5	)		44		(16	)		225		—
Total fixed maturity securities		4,317		20			(60	)		153		(41	)		—		(234	)		79		(85	)		4,149		5
Equity securities		48		—			—			—		(1	)		—		—			—		(3	)		44		—
Other invested assets:
Derivative assets:
Equity index options		81		16			—			15		—			—		(31	)		—		—			81		13
Total derivative assets		81		16			—			15		—			—		(31	)		—		—			81		13
Total other invested assets		81		16			—			15		—			—		(31	)		—		—			81		13
Reinsurance recoverable (2)		15		(1	)		—			—		—			—		—			—		—			14		(1	)
Total Level 3 assets	$	4,461	$	35		$	(60	)	$	168	$	(42	)	$	—	$	(265	)	$	79	$	(88	)	$	4,288	$	17

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

52

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in millions)	Beginning balance as of July 1, 2016		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2016		Total gains (losses) included in net income (loss) attributable to assets still held
			Included in net income (loss)			Included in OCI
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	2	$	—		$	—		$	—	$	—		$	—	$	—		$	—	$	—		$	2	$	—
State and political subdivisions		36		1			—			—		—			—		—			—		(1	)		36		1
U.S. corporate:
Utilities		552		1			4			54		(6	)		—		(1	)		1		(43	)		562		—
Energy		208		—			3			—		—			—		(8	)		—		(1	)		202		—
Finance and insurance		775		4			14			27		(5	)		—		(32	)		37		—			820		5
Consumer—non-cyclical		102		—			1			5		(5	)		—		—			—		—			103		—
Technology and communications		40		1			—			12		—			—		—			—		—			53		1
Industrial		78		—			—			—		—			—		—			—		—			78		—
Capital goods		135		—			1			—		—			—		—			—		—			136		1
Consumer—cyclical		254		—			—			19		(5	)		—		(1	)		1		(3	)		265		—
Transportation		129		—			1			—		—			—		(6	)		—		—			124		—
Other		147		—			—			—		—			—		(1	)		16		—			162		—
Total U.S. corporate		2,420		6			24			117		(21	)		—		(49	)		55		(47	)		2,505		7
Non-U.S. corporate:
Utilities		331		—			1			52		(5	)		—		—			—		(10	)		369		—
Energy		234		—			9			8		(9	)		—		(17	)		—		—			225		—
Finance and insurance		201		—			3			11		(1	)		—		—			—		—			214		—
Consumer—non-cyclical		168		2			(1	)		3		(3	)		—		(37	)		12		—			144		—
Technology and communications		80		—			1			2		(2	)		—		—			—		—			81		—
Industrial		95		—			2			17		(17	)		—		—			15		—			112		—
Capital goods		212		1			(2	)		—		—			—		(5	)		—		(33	)		173		1
Consumer—cyclical		71		—			—			—		—			—		—			—		—			71		—
Transportation		186		1			(1	)		—		—			—		(14	)		1		—			173		—
Other		29		(2	)		2			—		(12	)		—		—			10		—			27		(2	)
Total non-U.S. corporate		1,607		2			14			93		(49	)		—		(73	)		38		(43	)		1,589		(1	)
Residential mortgage-backed		96		—			—			—		(45	)		—		(8	)		5		(11	)		37		—
Commercial mortgage-backed		33		—			(3	)		—		—			—		—			—		(2	)		28		—
Other asset-backed		198		(6	)		7			—		(5	)		—		(5	)		25		(64	)		150		(6	)
Total fixed maturity securities		4,392		3			42			210		(120	)		—		(135	)		123		(168	)		4,347		1
Equity securities		44		—			—			2		—			—		—			—		—			46		—
Other invested assets:
Derivative assets:
Equity index options		57		9			—			15		—			—		(20	)		—		—			61		—
Other foreign currency contracts		1		—			—			—		—			—		—			—		—			1		—
Total derivative assets		58		9			—			15		—			—		(20	)		—		—			62		—
Total other invested assets		58		9			—			15		—			—		(20	)		—		—			62		—
Restricted other invested assets related to securitization entities		131		—			—			—		—			—		—			—		—			131		—
Reinsurance recoverable (2)		26		(3	)		—			—		—			1		—			—		—			24		(3	)
Total Level 3 assets	$	4,651	$	9		$	42		$	227	$	(120	)	$	1	$	(155	)	$	123	$	(168	)	$	4,610	$	(2	)

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

53

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

(Amounts in millions)	Beginning balance as of January 1, 2017		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2017		Total gains (losses) included in net income (loss) attributable to assets still held
			Included in net income (loss)			Included in OCI
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	2	$	—		$	—		$	—	$	—		$	—	$	(1	)	$	—	$	—		$	1	$	—
State and political subdivisions		37		2			(2	)		—		—			—		—			—		—			37		2
U.S. corporate:
Utilities		576		—			20			70		—			—		(4	)		30		(30	)		662		—
Energy		210		(1	)		6			—		(10	)		—		(32	)		1		(16	)		158		(1	)
Finance and insurance		786		11			(1	)		75		(31	)		—		(163	)		8		(15	)		670		10
Consumer—non-cyclical		121		—			2			4		—			—		—			—		—			127		—
Technology and
communications		54		2			3			14		—			—		(1	)		—		(20	)		52		2
Industrial		48		—			—			13		—			—		—			—		(14	)		47		—
Capital goods		152		1			3			—		—			—		(1	)		—		(37	)		118		1
Consumer—cyclical		258		—			9			2		—			—		(5	)		—		(2	)		262		—
Transportation		139		17			(5	)		—		—			—		(48	)		—		(42	)		61		1
Other		143		—			1			—		(4	)		—		(7	)		37		—			170		—
Total U.S. corporate		2,487		30			38			178		(45	)		—		(261	)		76		(176	)		2,327		13
Non-U.S. corporate:
Utilities		386		—			5			30		—			—		—			—		(62	)		359		—
Energy		206		—			6			—		(1	)		—		(1	)		—		(33	)		177		—
Finance and insurance		182		4			9			4		—			—		(30	)		—		—			169		2
Consumer—non-cyclical		139		—			2			—		—			—		(12	)		—		—			129		—
Technology and
communications		67		1			1			—		(21	)		—		(19	)		—		—			29		—
Industrial		109		—			3			13		—			—		—			14		—			139		—
Capital goods		169		—			3			—		—			—		(15	)		—		(7	)		150		—
Consumer—cyclical		69		—			—			—		—			—		(2	)		2		—			69		—
Transportation		181		—			4			6		—			—		(10	)		11		(11	)		181		—
Other		25		(2	)		2			15		(2	)		—		—			11		—			49		—
Total non-U.S. corporate		1,533		3			35			68		(24	)		—		(89	)		38		(113	)		1,451		2
Residential mortgage-backed		43		—			1			26		—			—		(2	)		26		(8	)		86		—
Commercial mortgage-backed		54		(2	)		4			23		(9	)		—		—			—		(48	)		22		—
Other asset-backed		145		(8	)		11			116		(35	)		—		(12	)		58		(50	)		225		—
Total fixed maturity securities		4,301		25			87			411		(113	)		—		(365	)		198		(395	)		4,149		17
Equity securities		47		—			—			1		(1	)		—		—			—		(3	)		44		—
Other invested assets:
Derivative assets:
Equity index options		72		42			—			36		—			—		(69	)		—		—			81		21
Other foreign currency contracts		3		(3	)		—			—		—			—		—			—		—			—		(2	)
Total derivative assets		75		39			—			36		—			—		(69	)		—		—			81		19
Total other invested assets		75		39			—			36		—			—		(69	)		—		—			81		19
Restricted other invested assets related to securitization entities		131		—			—			—		(131	)		—		—			—		—			—		—
Reinsurance recoverable (2)		16		(3	)		—			—		—			1		—			—		—			14		(3	)
Total Level 3 assets	$	4,570	$	61		$	87		$	448	$	(245	)	$	1	$	(434	)	$	198	$	(398	)	$	4,288	$	33

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

54

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Beginning balance as of January 1, 2016		Total realized and unrealized gains (losses)																Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2016		Total gains (losses) included in net income (loss) attributable to assets still held
(Amounts in millions)			Included in net income (loss)			Included in OCI			Purchases		Sales			Issuances		Settlements
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3	$	—		$	—		$	—	$	—		$	—	$	(1	)	$	—	$	—		$	2	$	—
State and political subdivisions		35		2			(1	)		7		—			—		—			—		(7	)		36		2
U.S. corporate:
Utilities		449		1			28			101		(6	)		—		(9	)		68		(70	)		562		—
Energy		253		—			(1	)		—		—			—		(10	)		7		(47	)		202		—
Finance and insurance		715		12			58			54		(14	)		—		(59	)		72		(18	)		820		11
Consumer—non-cyclical		109		—			7			5		(18	)		—		—			—		—			103		—
Technology and communications		35		2			4			12		—			—		—			—		—			53		2
Industrial		61		—			5			—		—			—		—			12		—			78		—
Capital goods		180		1			6			—		(10	)		—		—			—		(41	)		136		1
Consumer—cyclical		239		4			9			44		(5	)		—		(42	)		19		(3	)		265		—
Transportation		106		1			9			17		—			—		(14	)		5		—			124		1
Other		182		1			1			—		—			—		(5	)		16		(33	)		162		1
Total U.S. corporate		2,329		22			126			233		(53	)		—		(139	)		199		(212	)		2,505		16
Non-U.S. corporate:
Utilities		287		—			9			62		(5	)		—		—			26		(10	)		369		—
Energy		252		—			33			8		(11	)		—		(31	)		—		(26	)		225		—
Finance and insurance		191		2			11			11		(1	)		—		—			—		—			214		2
Consumer—non-cyclical		169		2			9			3		(3	)		—		(48	)		12		—			144		—
Technology and communications		62		—			6			18		(5	)		—		—			—		—			81		—
Industrial		84		—			7			17		(20	)		—		—			24		—			112		—
Capital goods		213		1			7			—		—			—		(15	)		—		(33	)		173		1
Consumer—cyclical		71		—			2			—		—			—		(2	)		—		—			71		—
Transportation		144		1			3			—		—			—		(14	)		39		—			173		—
Other		72		(2	)		4			—		(12	)		—		(7	)		10		(38	)		27		(2	)
Total non-U.S. corporate		1,545		4			91			119		(57	)		—		(117	)		111		(107	)		1,589		1
Residential mortgage-backed		116		—			2			51		(45	)		—		(13	)		13		(87	)		37		—
Commercial mortgage-backed		10		—			1			23		—			—		(4	)		—		(2	)		28		—
Other asset-backed		1,142		(16	)		3			12		(25	)		—		(19	)		66		(1,013	)		150		(16	)
Total fixed maturity securities		5,180		12			222			445		(180	)		—		(293	)		389		(1,428	)		4,347		3
Equity securities		38		—			—			8		—			—		—			—		—			46		—
Other invested assets:
Derivative assets:
Credit default swaps		1		—			—			—		—			—		(1	)		—		—			—		—
Equity index options		30		5			—			51		—			—		(25	)		—		—			61		(4	)
Other foreign currency contracts		3		(2	)		—			1		—			—		(1	)		—		—			1		(2	)
Total derivative assets		34		3			—			52		—			—		(27	)		—		—			62		(6	)
Total other invested assets		34		3			—			52		—			—		(27	)		—		—			62		(6	)
Restricted other invested assets related to securitization entities		232		(55	)		—			—		—			—		(46	)		—		—			131		9
Reinsurance recoverable (2)		17		5			—			—		—			2		—			—		—			24		5
Total Level 3 assets	$	5,501	$	(35	)	$	222		$	505	$	(180	)	$	2	$	(366	)	$	389	$	(1,428	)	$	4,610	$	11

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

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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 assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated:

	Three months ended September 30,					Nine months ended September 30,
(Amounts in millions)	2017		2016			2017		2016
Total realized and unrealized gains (losses) included in net income (loss):
Net investment income	$	7	$	11		$	22	$	(33	)
Net investment gains (losses)		28		(2	)		39		(2	)
Total	$	35	$	9		$	61	$	(35	)
Total gains (losses) included in net income (loss) attributable to assets still held:
Net investment income	$	5	$	9		$	18	$	23
Net investment gains (losses)		12		(11	)		15		(12	)
Total	$	17	$	(2	)	$	33	$	11

The amount presented for unrealized gains (losses) included in net income (loss) for available-for-sale securities represents impairments and accretion on certain fixed maturity securities.

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GENWORTH FINANCIAL, INC.

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(Unaudited)

The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of September 30, 2017:

(Amounts in millions)	Valuation technique		Fair value		Unobservable input		Range		Weighted- average
Fixed maturity securities:
U.S. corporate:
Utilities		Internal models	$	647		Credit spreads		73bps - 379bps		135bps
Energy		Internal models		86		Credit spreads		80bps - 193bps		142bps
Finance and insurance		Internal models		629		Credit spreads		70bps - 354bps		180bps
Consumer—non-cyclical		Internal models		127		Credit spreads		88bps - 247bps		132bps
Technology and communications		Internal models		52		Credit spreads		60bps - 353bps		299bps
Industrial		Internal models		20		Credit spreads		90bps - 207bps		162bps
Capital goods		Internal models		118		Credit spreads		90bps - 247bps		140bps
Consumer—cyclical		Internal models		236		Credit spreads		56bps - 210bps		129bps
Transportation		Internal models		54		Credit spreads		56bps - 123bps		89bps
Other		Internal models		161		Credit spreads		64bps - 135bps		75bps
Total U.S. corporate		Internal models	$	2,130		Credit spreads		56bps - 379bps		146bps
Non-U.S. corporate:
Utilities		Internal models	$	358		Credit spreads		77bps - 158bps		116bps
Energy		Internal models		146		Credit spreads		90bps - 169bps		116bps
Finance and insurance		Internal models		160		Credit spreads		69bps - 179bps		107bps
Consumer—non-cyclical		Internal models		118		Credit spreads		56bps - 191bps		112bps
Technology and communications		Internal models		29		Credit spreads		123bps - 222bps		171bps
Industrial		Internal models		130		Credit spreads		109bps - 247bps		146bps
Capital goods		Internal models		121		Credit spreads		88bps - 145bps		112bps
Consumer—cyclical		Internal models		69		Credit spreads		87bps - 169bps		112bps
Transportation		Internal models		161		Credit spreads		78bps - 210bps		115bps
Other		Internal models		49		Credit spreads		101bps - 233bps		181bps
Total non-U.S. corporate		Internal models	$	1,341		Credit spreads		56bps - 247bps		120bps
Derivative assets:
Equity index options		Discounted cash flows	$	81		Equity index volatility		6% - 27%		18	%

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.

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(Unaudited)

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

	September 30, 2017
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
GMWB embedded derivatives (1)	$	257	$	—	$	—	$	257
Fixed index annuity embedded derivatives		394		—		—		394
Indexed universal life embedded derivatives		14		—		—		14
Total policyholder account balances		665		—		—		665
Derivative liabilities:
Interest rate swaps		39		—		39		—
Equity return swaps		2		—		2		—
Other foreign currency contracts		23		—		23		—
Total derivative liabilities		64		—		64		—
Borrowings related to securitization entities		12		—		—		12
Total liabilities	$	741	$	—	$	64	$	677

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

	December 31, 2016
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
GMWB embedded derivatives (1)	$	303	$	—	$	—	$	303
Fixed index annuity embedded derivatives		344		—		—		344
Indexed universal life embedded derivatives		11		—		—		11
Total policyholder account balances		658		—		—		658
Derivative liabilities:
Interest rate swaps		349		—		349		—
Foreign currency swaps		5		—		5		—
Credit default swaps related to securitization entities		1		—		1		—
Equity return swaps		1		—		1		—
Other foreign currency contracts		27		—		27		—
Total derivative liabilities		383		—		383		—
Borrowings related to securitization entities		12		—		—		12
Total liabilities	$	1,053	$	—	$	383	$	670

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

58

GENWORTH FINANCIAL, INC.

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(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 or for the dates indicated:

	Beginning balance as of July 1, 2017		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3		Ending balance as of September 30, 2017		Total (gains) losses included in net (income) loss attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	281	$	(31	)	$	—	$	—	$	—	$	7	$	—		$	—	$	—	$	257	$	(31	)
Fixed index annuity embedded derivatives		376		21			—		—		—		—		(3	)		—		—		394		21
Indexed universal life embedded derivatives		13		(2	)		—		—		—		3		—			—		—		14		(2	)
Total policyholder account balances		670		(12	)		—		—		—		10		(3	)		—		—		665		(12	)
Borrowings related to securitization entities		12		—			—		—		—		—		—			—		—		12		—
Total Level 3 liabilities	$	682	$	(12	)	$	—	$	—	$	—	$	10	$	(3	)	$	—	$	—	$	677	$	(12	)

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

(Amounts in millions)	Beginning balance as of July 1, 2016		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3		Ending balance as of September 30, 2016		Total (gains) losses included in net (income) loss attributable to liabilities still held
			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	494	$	(63	)	$	—	$	—	$	—	$	8	$	—		$	—	$	—	$	439	$	(59	)
Fixed index annuity embedded derivatives		351		16			—		—		—		—		(3	)		—		—		364		16
Indexed universal life embedded derivatives		13		(3	)		—		—		—		3		—			—		—		13		(3	)
Total policyholder account balances		858		(50	)		—		—		—		11		(3	)		—		—		816		(46	)
Borrowings related to securitization entities		11		—			—		—		—		—		—			—		—		11		—
Total Level 3 liabilities	$	869	$	(50	)	$	—	$	—	$	—	$	11	$	(3	)	$	—	$	—	$	827	$	(46	)

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

59

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 or for the dates indicated:

	Beginning balance as of January 1, 2017		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3		Ending balance as of September 30, 2017		Total (gains) losses included in net (income) loss attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	303	$	(67	)	$	—	$	—	$	—	$	21	$	—		$	—	$	—	$	257	$	(64	)
Fixed index annuity embedded derivatives		344		57			—		—		—		—		(7	)		—		—		394		57
Indexed universal life embedded derivatives		11		(5	)		—		—		—		8		—			—		—		14		(5	)
Total policyholder account balances		658		(15	)		—		—		—		29		(7	)		—		—		665		(12	)
Borrowings related to securitization entities		12		1			—		—		—		—		(1	)		—		—		12		1
Total Level 3 liabilities	$	670	$	(14	)	$	—	$	—	$	—	$	29	$	(8	)	$	—	$	—	$	677	$	(11	)

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

	Beginning balance as of January 1, 2016		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3			Ending balance as of September 30, 2016		Total (gains) losses included in net (income) loss attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	352	$	63		$	—	$	—	$	—	$	24	$	—		$	—	$	—		$	439	$	72
Fixed index annuity embedded derivatives		342		22			—		—		—		10		(10	)		—		—			364		22
Indexed universal life embedded derivatives		10		(6	)		—		—		—		9		—			—		—			13		(6	)
Total policyholder account balances		704		79			—		—		—		43		(10	)		—		—			816		88
Derivative liabilities:
Credit default swaps related to securitization entities		14		(13	)		—		—		—		—		2			—		(3	)		—		—
Total derivative liabilities		14		(13	)		—		—		—		—		2			—		(3	)		—		—
Borrowings related to securitization entities		81		(65	)		—		—		—		—		(5	)		—		—			11		—
Total Level 3 liabilities	$	799	$	1		$	—	$	—	$	—	$	43	$	(13	)	$	—	$	(3	)	$	827	$	88

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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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 income statement line item in which these gains and losses were presented for the periods indicated:

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Total realized and unrealized (gains) losses included in net (income) loss:
Net investment income	$	—		$	—		$	—		$	—
Net investment (gains) losses		(12	)		(50	)		(14	)		1
Total	$	(12	)	$	(50	)	$	(14	)	$	1
Total (gains) losses included in net (income) loss attributable to liabilities still held:
Net investment income	$	—		$	—		$	—		$	—
Net investment (gains) losses		(12	)		(46	)		(11	)		88
Total	$	(12	)	$	(46	)	$	(11	)	$	88

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, equity and trading securities and purchases, issuances and settlements of derivative instruments.

Issuances presented for GMWB embedded derivative liabilities are characterized as the change in fair value associated with the product fees recognized that are attributed to the embedded derivative to equal the expected future benefit costs upon issuance. Issuances for fixed index 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 September 30, 2017:

(Amounts in millions)	Valuation technique		Fair value		Unobservable input		Range		Weighted- average
Policyholder account balances:
						Withdrawal utilization rate		40% - 84%		65%
						Lapse rate		—  % - 8%		4%
						Non-performance risk (credit spreads)		26bps - 83bps		66bp	s
GMWB embedded derivatives (1)		Stochastic cash flow model		$257		Equity index volatility		13% - 24%		20%
Fixed index annuity embedded derivatives		Option budget method		$394		Expected future interest credited		—  % - 2%		1%
Indexed universal life embedded derivatives		Option budget method		$14		Expected future interest credited		3% - 8%		5%

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

(7) Deferred Acquisition Costs

The following table presents the activity impacting deferred acquisition costs (“DAC”) for the dates indicated:

	As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016
Unamortized beginning balance	$	4,241		$	4,569
Impact of foreign currency translation		12			8
Costs deferred		67			124
Amortization, net of interest accretion		(261	)		(257	)
Unamortized ending balance		4,059			4,444
Accumulated effect of net unrealized investment (gains) losses		(1,717	)		(462	)
Ending balance	$	2,342		$	3,982

We regularly review DAC to determine if it is recoverable from future income. In 2017 and 2016, we performed loss recognition testing and determined that we had premium deficiencies in our fixed immediate annuity products. As of June 30, 2016, we wrote off the entire DAC balance for our fixed immediate annuity products of $14 million through amortization. In addition, as a result of our fixed immediate annuity loss recognition testing as of September 30, 2017 and 2016, we increased our future policy benefit reserves and recognized expenses of $31 million and $24 million, respectively. The premium deficiency test results were primarily driven by the low interest rate environment. As of September 30, 2017, we believe all of our other businesses had sufficient future income and therefore the related DAC was recoverable.

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GENWORTH FINANCIAL, INC.

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(Unaudited)

In addition, we are required to analyze the impacts from net unrealized investment gains and losses on our available-for-sale investment securities backing insurance liabilities, as if those unrealized investment gains and losses were realized. These “shadow accounting” adjustments result in the recognition of unrealized gains and losses on related insurance assets and liabilities in a manner consistent with the recognition of the unrealized gains and losses on available-for-sale investment securities within the statements of comprehensive income and changes in equity. Changes to net unrealized investment (gains) losses may increase or decrease the ending DAC balance. Similar to a loss recognition event, when the DAC balance is reduced to zero, additional insurance liabilities are established if necessary. Unlike a loss recognition event, based on changes in net unrealized investment (gains) losses, these shadow adjustments may reverse from period to period. As of September 30, 2017, due primarily to the decline in interest rates increasing unrealized investments gains, we reduced the DAC balance of our long-term care insurance business to zero, a cumulative decrease in the accumulated effect of net unrealized investment gains of approximately $1.3 billion out of the total $1.7 billion in the table above, with an offsetting amount recorded in other comprehensive income (loss). In addition, we increased our future policy benefit reserves in our long-term care insurance business by approximately $333 million as of September 30, 2017, with an offsetting amount recorded in other comprehensive income (loss). There was no impact to net income (loss).

(8) Liability for Policy and Contract Claims

The following table sets forth changes in our liability for policy and contract claims as of the dates indicated:

	As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016
Beginning balance	$	9,256		$	8,095
Less reinsurance recoverables		(2,409	)		(2,122	)
Net beginning balance		6,847			5,973
Incurred related to insured events of:
Current year		2,748			2,569
Prior years		(306	)		320
Total incurred		2,442			2,889
Paid related to insured events of:
Current year		(755	)		(727	)
Prior years		(1,746	)		(1,646	)
Total paid		(2,501	)		(2,373	)
Interest on liability for policy and contract claims		223			188
Foreign currency translation		27			14
Net ending balance		7,038			6,691
Add reinsurance recoverables		2,346			2,178
Ending balance	$	9,384		$	8,869

The liability for policy and contract claims represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and

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GENWORTH FINANCIAL, INC.

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(Unaudited)

adverse trends, could possibly be significant, and result in increases in reserves by an amount that could be material to our results of operations and financial condition and liquidity.

As of the nine months ended September 30, 2017, the favorable development of $306 million related to insured events of prior years was primarily attributable to favorable claim terminations in our long-term care insurance business. Our mortgage insurance businesses also experienced favorable prior year claim development mostly from an improvement in net cures and aging of existing claims, as well as lower delinquencies and an improvement in the estimated claim severity or amount.

(9) Income Taxes

The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated:

	Three months ended September 30,										Nine months ended September 30,
(Amounts in millions)	2017					2016					2017					2016
Pre-tax income (loss)	$	286				$	(125	)			$	1,019				$	376
Statutory U.S. federal income tax rate	$	100		35.0	%	$	(44	)	35.0	%	$	357		35.0	%	$	132		35.0	%
Increase (reduction) in rate resulting from:
State income tax, net of federal income tax effect		1		0.1			—		—			(2	)	(0.2	)		1		0.2
Tax favored investments		6		1.9			1		(0.7	)		3		0.3			(2	)	(0.5	)
Effect of foreign operations		(6	)	(2.0	)		5		(3.9	)		(14	)	(1.3	)		(12	)	(3.3	)
Non-deductible expenses		—		—			(1	)	0.5			1		0.1			(1	)	(0.1	)
Valuation allowance		—		—			265		(212.9	)		—		—			240		63.8
Stock-based compensation		1		0.5			2		(1.8	)		3		0.2			5		1.4
Loss on sale of business		—		—			—		—			—		—			(1	)	(0.2	)
Other, net		—		—			(6	)	4.8			—		—			(7	)	(1.8	)
Effective rate	$	102		35.5	%	$	222		(179.0	)%	$	348		34.1	%	$	355		94.5	%

The effective tax rate for the three and nine months ended September 30, 2017 was impacted by higher tax benefits from lower taxed foreign income. The effective tax rate for the three and nine months ended September 30, 2016 was impacted by a valuation allowance of $265 million recorded on deferred tax assets related to foreign tax credits that we no longer expect to realize. The effective tax rate for the nine months ended September 30, 2016 was also impacted by the reversal of a deferred tax valuation allowance related to our mortgage insurance business in Europe due to taxable gains supporting the recognition of these deferred tax assets in the prior year.

(10) Segment Information

We have the following five operating business segments: U.S. Mortgage Insurance; Canada Mortgage Insurance; Australia Mortgage Insurance; U.S Life Insurance (which includes our long-term care insurance, life insurance and fixed annuities businesses); and Runoff (which includes the results of non-strategic products which have not been actively sold). In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level,

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GENWORTH FINANCIAL, INC.

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(Unaudited)

unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations.

We allocate our consolidated provision for income taxes to our operating segments. Our allocation methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.

We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income (loss) and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding the after-tax effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. We exclude net investment gains (losses) and infrequent or unusual non-operating items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A component of our net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders because, in our opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders if, in our opinion, they are not indicative of overall operating trends.

While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our

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(Unaudited)

definition of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) attributable to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders assume a 35% tax rate (unless otherwise indicated) and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves.

We recorded a pre-tax expense of $1 million in both the third and first quarters of 2017 related to restructuring costs as the company continues to evaluate and appropriately size its organizational needs and expenses.

In the third quarter of 2016, we recorded a pre-tax expense of $2 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses.

In the second quarter of 2016, we completed the sale of our mortgage insurance business in Europe and recorded an additional pre-tax loss of $2 million; we completed the sale of our term life insurance new business platform and recorded a pre-tax gain of $12 million; we settled restricted borrowings related to a securitization entity and recorded a $64 million pre-tax gain related to the early extinguishment of debt; and we recorded a pre-tax expense of $5 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses.

In the first quarter of 2016, we recorded a pre-tax loss of $7 million and a tax benefit of $27 million related to the planned sale of our mortgage insurance business in Europe; we paid a pre-tax make-whole expense of $20 million related to the early redemption of Genworth Holdings’ 2016 notes; we also repurchased $28 million principal amount of Genworth Holdings’ notes with various maturity dates for a pre-tax gain of $4 million; we completed a life block transaction resulting in a pre-tax loss of $9 million in connection with the early extinguishment of non-recourse funding obligations; and we recorded a pre-tax expense of $15 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses.

There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented other than the following item. We incurred fees during the first quarter of 2016 related to Genworth Holdings’ bond consent solicitation of $18 million for broker, advisor and investment banking fees.

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(Unaudited)

The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated:

	Three months ended September 30,					Nine months ended September 30,
(Amounts in millions)	2017		2016			2017			2016
Revenues:
U.S. Mortgage Insurance segment	$	194	$	186		$	570		$	537
Canada Mortgage Insurance segment		220		156			593			463
Australia Mortgage Insurance segment		98		115			317			333
U.S. Life Insurance segment:
Long-term care insurance		1,033		980			3,063			3,051
Life insurance		389		418			1,217			953
Fixed annuities		190		218			605			613
U.S. Life Insurance segment		1,612		1,616			4,885			4,617
Runoff segment		90		84			266			218
Corporate and Other activities		1		(7	)		(22	)		3
Total revenues	$	2,215	$	2,150		$	6,609		$	6,171

The increase in total revenues for the nine months ended September 30, 2017 was primarily attributable to our U.S. Life Insurance segment driven mostly by a life block transaction in our life insurance business in the first quarter of 2016, under which we initially ceded $326 million of certain term life insurance premiums.

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(Unaudited)

The following tables present the reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated:

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	107		$	(380	)	$	464		$	(155	)
Add: net income attributable to noncontrolling interests		68			48			198			151
Net income (loss)		175			(332	)		662			(4	)
Income (loss) from discontinued operations, net of taxes		(9	)		15			(9	)		(25	)
Income (loss) from continuing operations		184			(347	)		671			21
Less: income from continuing operations attributable to noncontrolling interests		68			48			198			151
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders		116			(395	)		473			(130	)
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net (1)		(62	)		(18	)		(161	)		(38	)
(Gains) losses from sale of businesses		—			—			—			(3	)
(Gains) losses on early extinguishment of debt, net		—			—			—			(48	)
Losses from life block transactions		—			—			—			9
Expenses related to restructuring		1			2			2			22
Fees associated with bond consent solicitation		—			—			—			18
Taxes on adjustments		21			6			56			(9	)
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders	$	76		$	(405	)	$	370		$	(179	)

⁽¹⁾ For the three months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for net investment (gains) losses attributable to noncontrolling interests of $23 million and $2 million, respectively. For the nine months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(15) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $59 million and $8 million, respectively.

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(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:
U.S. Mortgage Insurance segment	$	73		$	67		$	237		$	189
Canada Mortgage Insurance segment		37			36			114			107
Australia Mortgage Insurance segment		12			14			37			48
U.S. Life Insurance segment:
Long-term care insurance		(5	)		(270	)		42			(199	)
Life insurance		(9	)		48			6			110
Fixed annuities		13			15			43			28
U.S. Life Insurance segment		(1	)		(207	)		91			(61	)
Runoff segment		13			12			38			22
Corporate and Other activities		(58	)		(327	)		(147	)		(484	)
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders	$	76		$	(405	)	$	370		$	(179	)

The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated:

(Amounts in millions)	September 30, 2017		December 31, 2016
Assets:
U.S. Mortgage Insurance segment	$	3,015	$	2,674
Canada Mortgage Insurance segment		5,435		4,884
Australia Mortgage Insurance segment		2,814		2,619
U.S. Life Insurance segment		81,858		81,933
Runoff segment		11,149		11,352
Corporate and Other activities		358		1,196
Total assets	$	104,629	$	104,658

(11) Commitments and Contingencies

(a) Litigation and Regulatory Matters

We face the risk of litigation and regulatory investigations and actions in the ordinary course of operating our businesses, including the risk of class action lawsuits. Our pending legal and regulatory actions include proceedings specific to us and others generally applicable to business practices in the industries in which we operate. In our insurance operations, we are, have been, or may become subject to class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, increases to in-force long-term care insurance premiums, payment of contingent or other sales commissions, claims payments and procedures, product design, product disclosure, product administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on

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(Unaudited)

products, recommending unsuitable products to customers, our pricing structures and business practices in our mortgage insurance businesses, such as captive reinsurance arrangements with lenders and contract underwriting services, violations of the Real Estate Settlement and Procedures Act of 1974 or related state anti-inducement laws, and mortgage insurance policy rescissions and curtailments, and breaching fiduciary or other duties to customers, including but not limited to breach of customer information. Plaintiffs in class action and other lawsuits against us may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. In our investment-related operations, we are subject to litigation involving commercial disputes with counterparties. We are also subject to litigation arising out of our general business activities such as our contractual and employment relationships, post-closing obligations associated with previous dispositions and securities lawsuits. In addition, we are also subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and international regulators and other authorities. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our business, financial condition and results of operations. Moreover, even if we ultimately prevail in the litigation, regulatory action or investigation, we could suffer significant reputational harm, which could have an adverse effect on our business, financial condition or results of operations.

In April 2014, Genworth Financial, Inc., its former chief executive officer and its then current chief financial officer were named in a putative class action lawsuit captioned City of Hialeah Employees’ Retirement System v. Genworth Financial, Inc., et al., in the United States District Court for the Southern District of New York. Plaintiff alleges securities law violations involving certain disclosures in 2012 concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business. The lawsuit seeks unspecified damages, costs and attorneys’ fees and such equitable/injunctive relief as the court may deem proper. The United States District Court for the Southern District of New York appointed City of Hialeah Employees’ Retirement System and New Bedford Contributory Retirement System as lead plaintiffs and designated the caption of the action as In re Genworth Financial, Inc. Securities Litigation. On October 3, 2014, the lead plaintiffs filed an amended complaint. On December 2, 2014, we filed a motion to dismiss plaintiffs’ amended complaint. On March 25, 2015, the United States District Court for the Southern District of New York denied the motion but entered an order dismissing the amended complaint with leave to replead. On April 17, 2015, plaintiffs filed a second amended complaint. We filed a motion to dismiss the second amended complaint and on June 16, 2015, the court denied the motion to dismiss. On January 22, 2016, we filed a motion for reconsideration of the court’s June 16, 2015 order denying our motion to dismiss which the court denied on March 3, 2016. On January 29, 2016, plaintiffs filed a motion for class certification which we opposed. On March 7, 2016, the court granted plaintiffs’ motion for class certification. We have exhausted all coverage under our 2014 executive and organizational liability insurance program applicable to this case; therefore, there is no insurance coverage for Genworth with respect to any settlement or judgment amount related to this litigation. The parties engaged in settlement discussions. On March 21, 2017 in connection with those discussions, we reached an agreement in principle to settle the action, subject to the execution of a stipulation and agreement of settlement that provides a full release of all defendants in connection with the allegations made in the lawsuit, and for a settlement payment to the class of $20 million, inclusive of all plaintiffs’ attorneys fees and expenses and settlement costs, and subject further to the approval of the court. Subsequently, the parties executed a stipulation and agreement of settlement. We believe that the plaintiffs’ claims are without merit, but we are settling the lawsuit to avoid the burden, risk and expense of further litigation. On June 21, 2017, plaintiffs filed the stipulation and agreement of settlement and motion for preliminary approval with the court. On July 28, 2017, the court held a preliminary approval hearing, preliminarily approved the settlement, and set November 15, 2017 for a final approval hearing.

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(Unaudited)

In January 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by International Union of Operating Engineers Local No. 478 Pension Fund, Richard L. Salberg and David Pinkoski in the Court of Chancery of the State of Delaware. The case was captioned Int’l Union of Operating Engineers Local No. 478 Pension Fund, et al v. McInerney, et al. In February 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a second shareholder derivative suit filed by Martin Cohen in the Court of Chancery of the State of Delaware. The case was captioned Cohen v. McInerney, et al. On February 23, 2016, the Court of Chancery of the State of Delaware consolidated these derivative suits under the caption Genworth Financial, Inc. Consolidated Derivative Litigation. On March 28, 2016, plaintiffs in the consolidated action filed an amended complaint. The amended complaint alleges breaches of fiduciary duties concerning Genworth’s long-term care insurance reserves and concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business and seeks unspecified damages, costs, attorneys’ fees and such equitable relief as the court may deem proper. The amended consolidated complaint also adds Genworth’s current chief financial officer as a defendant, based on the current chief financial officer’s alleged conduct in her former capacity as Genworth’s controller and principal accounting officer. We moved to dismiss the consolidated action on May 27, 2016. Thereafter, plaintiffs filed a substantially similar second amended complaint which we moved to dismiss on September 16, 2016. The motion is fully briefed and awaiting disposition by the court.

In October 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its current chief financial officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by Esther Chopp in the Court of Chancery of the State of Delaware. The case is captioned Chopp v. McInerney, et al. The complaint alleges that Genworth’s board of directors wrongfully refused plaintiff’s demand to commence litigation on behalf of Genworth and asserts claims for breaches of fiduciary duties, waste, contribution and indemnification, and unjust enrichment concerning Genworth’s long-term care insurance reserves and concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business, and seeks unspecified damages, costs, attorneys’ fees and such equitable relief as the court may deem proper. We filed a motion to dismiss on November 14, 2016.

In December 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, two former chief financial officers, and two of its insurance subsidiaries were named as defendants in a putative class action lawsuit captioned Leifer, et al v. Genworth Financial, Inc., et al, in the United States District Court for the Eastern District of Virginia, Richmond Division. Plaintiffs allege that the defendants’ financial disclosures and alleged misrepresentations concerning Genworth’s long-term care insurance reserves caused harm to current and former long-term care insurance policyholders and seek unspecified damages, declaratory and injunctive relief, attorneys’ fees, costs and pre-judgment and post-judgment interest. We filed a motion to dismiss on March 27, 2017. Plaintiffs filed an amended complaint on April 10, 2017. We filed a motion to dismiss on May 22, 2017. On June 20, 2017, plaintiffs filed a notice of voluntary dismissal without prejudice. On June 26, 2017, the court so ordered the notice of withdrawal of first amended complaint and of voluntary dismissal without prejudice against all defendants.

In January 2017, two putative stockholder class action lawsuits, captioned Rice v. Genworth Financial Incorporated, et al, and James v. Genworth Financial, Inc. et al, were filed in the United States District Court for the Eastern District of Virginia, Richmond Division, against Genworth and its board of directors. A third putative stockholder class action lawsuit captioned Rosenfeld Family Trust v. Genworth Financial, Inc. et al, was filed in

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(Unaudited)

the United States District Court for the District of Delaware against Genworth and its board of directors. In February 2017, a fourth putative class action lawsuit captioned Chopp v. Genworth Financial, Inc. et al, was filed in the United States District Court for the District of Delaware against Genworth and its board of directors and a fifth putative class action lawsuit captioned Ratliff v. Genworth Financial, Inc. et al, was filed in the United States District Court for the Eastern District of Virginia, Richmond Division, against Genworth and its board of directors. The complaints in all five actions allege, among other things, that the preliminary proxy statement filed by Genworth with the SEC on December 21, 2016 contains false and/or materially misleading statements and/or omits material information. The complaints assert claims under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, and seek equitable relief, including declaratory and injunctive relief, and an award of attorneys’ fees and expenses. On February 2, 2017, the plaintiff in Rice filed a motion for a preliminary injunction to enjoin the transaction described in the preliminary proxy. On February 10, 2017, defendants filed an opposition to the preliminary injunction motion in the Rice action. Also on February 10, 2017, the plaintiff in Rosenfeld Family Trust filed a motion for a preliminary injunction to enjoin the transaction described in the preliminary proxy. On February 14, 2017, defendants filed a motion to transfer the Rosenfeld Family Trust action to the Eastern District of Virginia. On February 15, 2017, defendants filed a motion to transfer the Chopp action to the Eastern District of Virginia. On February 21, 2017, the parties to the Eastern District of Virginia actions (Rice, James and Ratliff) reached an agreement in principle to resolve the pending preliminary injunction motion in the Eastern District of Virginia through additional disclosure prior to the March 7, 2017 stockholder vote on the proposed merger transaction. On February 22, 2017, the plaintiffs in the Eastern District of Virginia withdrew their preliminary injunction motion in consideration of the agreed disclosures to be filed in a Form 8-K by February 24, 2017. Also on February 22, 2017, the court in the District of Delaware suspended briefing on the motion for preliminary injunction in the Rosenfeld Family Trust action and entered an order transferring the Rosenfeld Family Trust and Chopp actions to the Eastern District of Virginia. On February 23, 2017, the court in the Eastern District of Virginia set the Rosenfeld Family Trust preliminary injunction motion for a hearing on March 1, 2017. On February 26, 2017, defendants filed an opposition to the preliminary injunction motion in the Rosenfeld Family Trust action. On February 27, 2017, the parties in the Rosenfeld Family Trust action reached an agreement in principle to resolve the pending preliminary injunction motion in the Rosenfeld Family Trust action through additional disclosure prior to the March 7, 2017 stockholder vote on the proposed merger transaction, and the plaintiff in the Rosenfeld Family Trust action withdrew its preliminary injunction motion in consideration of the agreed disclosures as filed in a Form 8-K on February 28, 2017. On March 6, 2017, the court in the Eastern District of Virginia entered an order setting a schedule for proceedings to appoint a lead plaintiff and lead counsel for the purported class action. On March 7, 2017, the court in the Eastern District of Virginia consolidated the Rice, James, Ratliff, Rosenfeld Family Trust, and Chopp actions. On July 5, 2017, the court in the Eastern District of Virginia heard oral argument on the motion to appoint a lead plaintiff and lead counsel. On August 25, 2017, the court in the Eastern District of Virginia entered an order appointing the plaintiffs Alexander Rice and Brian James as lead plaintiffs and their counsel as lead counsel.

In April 2017, one of our insurance subsidiaries, Genworth Life and Annuity Insurance Company (“GLAIC”) was named as a defendant in a putative class action lawsuit captioned Avazian, et al v. Genworth Life and Annuity Insurance Company, et al, in the United States District Court for the Central District of California. Plaintiff alleges breach of contract and breach of the covenant of good faith and fair dealing based upon GLAIC’s termination of plaintiff’s life insurance policy for nonpayment of premium. Plaintiff alleges that the termination for nonpayment of premium failed to comply with certain notice requirements of the California Insurance Code and seeks certification as a California class action on behalf of all insureds and beneficiaries of life insurance policies issued or delivered by GLAIC in California before January 1, 2013 who lost either their coverage or their ability to make a claim because of the termination of their policies by GLAIC for nonpayment of premium, and further seeks unspecified damages, pre-judgment and post-judgment interest, punitive damages,

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(Unaudited)

fees, costs and such other relief as the court deems just and proper. On June 23, 2017, we filed a motion to dismiss the complaint. On July 10, 2017, the plaintiff filed a notice of voluntary dismissal without prejudice. On July 12, 2017, the court ordered that this action and all claims therein, are dismissed in their entirety without prejudice. In August 2017, plaintiff re-filed a similar putative class action lawsuit, along with another plaintiff, Michael Torres, captioned Avazian, et al v. Genworth Life and Annuity Insurance Company, et al, in the Superior Court for the State of California, County of Los Angeles, naming GLAIC as a defendant. Plaintiffs allege similar causes of action as the previously dismissed lawsuit, and have added a claim for alleged violation of California Business and Professions Code. On August 31, 2017, we filed notice of the removal of this matter to the United States District Court for the Central District of California and on October 6, 2017, filed a motion to dismiss the complaint. We intend to vigorously defend the action.

At this time, other than as noted above, we cannot determine or predict the ultimate outcome of any of the pending legal and regulatory matters specifically identified above or the likelihood of potential future legal and regulatory matters against us. Except as disclosed above, we also are not able to provide an estimate or range of reasonably possible losses related to these matters. Therefore, we cannot ensure that the current investigations and proceedings will not have a material adverse effect on our business, financial condition or results of operations. In addition, it is possible that related investigations and proceedings may be commenced in the future, and we could become subject to additional unrelated investigations and lawsuits. Increased regulatory scrutiny and any resulting investigations or proceedings could result in new legal precedents and industry-wide regulations or practices that could adversely affect our business, financial condition and results of operations.

(b) Commitments

As of September 30, 2017, we were committed to fund $319 million in limited partnership investments, $40 million in U.S. commercial mortgage loan investments and $21 million in private placement investments.

(12) Changes in Accumulated Other Comprehensive Income

The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated:

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of July 1, 2017	$	1,180		$	2,064		$	(149	)	$	3,095
OCI before reclassifications		(70	)		10			81			21
Amounts reclassified from (to) OCI		(19	)		(22	)		—			(41	)
Current period OCI		(89	)		(12	)		81			(20	)
Balances as of September 30, 2017 before noncontrolling interests		1,091			2,052			(68	)		3,075
Less: change in OCI attributable to noncontrolling interests		(17	)		—			57			40
Balances as of September 30, 2017	$	1,108		$	2,052		$	(125	)	$	3,035

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

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(Unaudited)

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of July 1, 2016	$	2,789		$	2,439		$	(140	)	$	5,088
OCI before reclassifications		86			72			(1	)		157
Amounts reclassified from (to) OCI		(9	)		(18	)		—			(27	)
Current period OCI		77			54			(1	)		130
Balances as of September 30, 2016 before noncontrolling interests		2,866			2,493			(141	)		5,218
Less: change in OCI attributable to noncontrolling interests		6			—			10			16
Balances as of September 30, 2016	$	2,860		$	2,493		$	(151	)	$	5,202

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of January 1, 2017	$	1,262		$	2,085		$	(253	)	$	3,094
OCI before reclassifications		(95	)		29			261			195
Amounts reclassified from (to) OCI		(77	)		(62	)		—			(139	)
Current period OCI		(172	)		(33	)		261			56
Balances as of September 30, 2017 before noncontrolling interests		1,090			2,052			8			3,150
Less: change in OCI attributable to noncontrolling interests		(18	)		—			133			115
Balances as of September 30, 2017	$	1,108		$	2,052		$	(125	)	$	3,035

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

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(Unaudited)

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of January 1, 2016	$	1,254		$	2,045		$	(289	)	$	3,010
OCI before reclassifications		1,692			507			223			2,422
Amounts reclassified from (to) OCI		(62	)		(59	)		—			(121	)
Current period OCI		1,630			448			223			2,301
Balances as of September 30, 2016 before noncontrolling interests		2,884			2,493			(66	)		5,311
Less: change in OCI attributable to noncontrolling interests		24			—			85			109
Balances as of September 30, 2016	$	2,860		$	2,493		$	(151	)	$	5,202

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

The foreign currency translation and other adjustments balance included $(5) million and $5 million, respectively, net of taxes of $1 million and $2 million, respectively, related to a net unrecognized postretirement benefit obligation as of September 30, 2017 and 2016. The amount also includes taxes of $28 million and $37 million, respectively, related to foreign currency translation adjustments as of September 30, 2017 and 2016.

The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented:

	Amount reclassified from accumulated other comprehensive income (loss)												Affected line item in the consolidated statements of income
	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Net unrealized investment (gains) losses:
Unrealized (gains) losses on investments (1)	$	(29	)	$	(13	)	$	(118	)	$	(95	)	Net investment (gains) losses
Provision for income taxes		10			4			41			33		Provision for income taxes
Total	$	(19	)	$	(9	)	$	(77	)	$	(62	)
Derivatives qualifying as hedges:
Interest rate swaps hedging assets	$	(34	)	$	(27	)	$	(95	)	$	(80	)	Net investment income
Interest rate swaps hedging assets		—			—			(2	)		(1	)	Net investment (gains) losses
Inflation indexed swaps		—			—			—			(2	)	Net investment income
Inflation indexed swaps		—			—			—			(7	)	Net investment (gains) losses
Provision for income taxes		12			9			35			31		Provision for income taxes
Total	$	(22	)	$	(18	)	$	(62	)	$	(59	)

⁽¹⁾ Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.

75

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(13) Condensed Consolidating Financial Information

Genworth Financial provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding senior notes and the holders of the senior notes, on an unsecured unsubordinated basis, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, each outstanding series of senior notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the senior notes indenture in respect of such senior notes. Genworth Financial also provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding subordinated notes and the holders of the subordinated notes, on an unsecured subordinated basis, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, the outstanding subordinated notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the subordinated notes indenture in respect of the subordinated notes. Genworth Holdings is a direct, 100% owned subsidiary of Genworth Financial.

The following condensed consolidating financial information of Genworth Financial and its direct and indirect subsidiaries have been prepared pursuant to rules regarding the preparation of consolidating financial information of Regulation S-X.

The condensed consolidating financial information presents the condensed consolidating balance sheet information as of September 30, 2017 and December 31, 2016, the condensed consolidating income statement information and the condensed consolidating comprehensive income statement information for the three and nine months ended September 30, 2017 and 2016 and the condensed consolidating cash flows statement information for the nine months ended September 30, 2017 and 2016.

The condensed consolidating financial information reflects Genworth Financial (“Parent Guarantor”), Genworth Holdings (“Issuer”) and each of Genworth Financial’s other direct and indirect subsidiaries (the “All Other Subsidiaries”) on a combined basis, none of which guarantee the senior notes or subordinated notes, as well as the eliminations necessary to present Genworth Financial’s financial information on a consolidated basis and total consolidated amounts.

The accompanying condensed consolidating financial information is presented based on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries and intercompany activity.

76

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating balance sheet information as of September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value	$	—		$	—		$	62,752		$	(200	)	$	62,552
Equity securities available-for-sale, at fair value		—			—			765			—			765
Commercial mortgage loans		—			—			6,268			—			6,268
Restricted commercial mortgage loans related to securitization entities		—			—			111			—			111
Policy loans		—			—			1,818			—			1,818
Other invested assets		—			75			1,517			(2	)		1,590
Investments in subsidiaries		13,191			12,459			—			(25,650	)		—
Total investments		13,191			12,534			73,231			(25,852	)		73,104
Cash and cash equivalents		—			754			2,082			—			2,836
Accrued investment income		—			—			639			—			639
Deferred acquisition costs		—			—			2,342			—			2,342
Intangible assets and goodwill		—			—			315			—			315
Reinsurance recoverable		—			—			17,553			—			17,553
Other assets		—			90			470			(8	)		552
Intercompany notes receivable		—			161			33			(194	)		—
Deferred tax assets		—			—			24			—			24
Separate account assets		—			—			7,264			—			7,264
Total assets	$	13,191		$	13,539		$	103,953		$	(26,054	)	$	104,629
Liabilities and equity
Liabilities:
Future policy benefits	$	—		$	—		$	38,022		$	—		$	38,022
Policyholder account balances		—			—			24,531			—			24,531
Liability for policy and contract claims		—			—			9,384			—			9,384
Unearned premiums		—			—			3,512			—			3,512
Other liabilities		8			163			1,842			(11	)		2,002
Intercompany notes payable		145			232			17			(394	)		—
Borrowings related to securitization entities		—			—			59			—			59
Non-recourse funding obligations		—			—			310			—			310
Long-term borrowings		—			3,722			502			—			4,224
Deferred tax liability		(31	)		(862	)		1,127			—			234
Separate account liabilities		—			—			7,264			—			7,264
Total liabilities		122			3,255			86,570			(405	)		89,542
Equity:
Common stock		1			—			3			(3	)		1
Additional paid-in capital		11,973			9,096			18,381			(27,477	)		11,973
Accumulated other comprehensive income (loss)		3,035			3,040			3,057			(6,097	)		3,035
Retained earnings		760			(1,852	)		(6,376	)		8,228			760
Treasury stock, at cost		(2,700	)		—			—			—			(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		13,069			10,284			15,065			(25,349	)		13,069
Noncontrolling interests		—			—			2,318			(300	)		2,018
Total equity		13,069			10,284			17,383			(25,649	)		15,087
Total liabilities and equity	$	13,191		$	13,539		$	103,953		$	(26,054	)	$	104,629

77

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating balance sheet information as of December 31, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value	$	—		$	—		$	60,772		$	(200	)	$	60,572
Equity securities available-for-sale, at fair value		—			—			632			—			632
Commercial mortgage loans		—			—			6,111			—			6,111
Restricted commercial mortgage loans related to securitization entities		—			—			129			—			129
Policy loans		—			—			1,742			—			1,742
Other invested assets		—			105			1,966			—			2,071
Restricted other invested assets related to securitization entities, at fair value		—			—			312			—			312
Investments in subsidiaries		12,730			12,308			—			(25,038	)		—
Total investments		12,730			12,413			71,664			(25,238	)		71,569
Cash and cash equivalents		—			998			1,786			—			2,784
Accrued investment income		—			—			663			(4	)		659
Deferred acquisition costs		—			—			3,571			—			3,571
Intangible assets and goodwill		—			—			348			—			348
Reinsurance recoverable		—			—			17,755			—			17,755
Other assets		9			134			530			—			673
Intercompany notes receivable		—			84			67			(151	)		—
Deferred tax assets		28			—			(28	)		—			—
Separate account assets		—			—			7,299			—			7,299
Total assets	$	12,767		$	13,629		$	103,655		$	(25,393	)	$	104,658
Liabilities and equity
Liabilities:
Future policy benefits	$	—		$	—		$	37,063		$	—		$	37,063
Policyholder account balances		—			—			25,662			—			25,662
Liability for policy and contract claims		—			—			9,256			—			9,256
Unearned premiums		—			—			3,378			—			3,378
Other liabilities		39			301			2,581			(5	)		2,916
Intercompany notes payable		84			267			—			(351	)		—
Borrowings related to securitization entities		—			—			74			—			74
Non-recourse funding obligations		—			—			310			—			310
Long-term borrowings		—			3,716			464			—			4,180
Deferred tax liability		—			(816	)		869			—			53
Separate account liabilities		—			—			7,299			—			7,299
Total liabilities		123			3,468			86,956			(356	)		90,191
Equity:
Common stock		1			—			—			—			1
Additional paid-in capital		11,962			9,097			20,252			(29,349	)		11,962
Accumulated other comprehensive income (loss)		3,094			3,135			3,116			(6,251	)		3,094
Retained earnings		287			(2,071	)		(8,792	)		10,863			287
Treasury stock, at cost		(2,700	)		—			—			—			(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		12,644			10,161			14,576			(24,737	)		12,644
Noncontrolling interests		—			—			2,123			(300	)		1,823
Total equity		12,644			10,161			16,699			(25,037	)		14,467
Total liabilities and equity	$	12,767		$	13,629		$	103,655		$	(25,393	)	$	104,658

78

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating income statement information for the three months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	1,135		$	—		$	1,135
Net investment income		(1	)		2			800			(4	)		797
Net investment gains (losses)		—			(4	)		89			—			85
Policy fees and other income		—			4			195			(1	)		198
Total revenues		(1	)		2			2,219			(5	)		2,215
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			1,344			—			1,344
Interest credited		—			—			164			—			164
Acquisition and operating expenses, net of deferrals		20			(2	)		247			—			265
Amortization of deferred acquisition costs and intangibles		—			—			83			—			83
Interest expense		—			66			12			(5	)		73
Total benefits and expenses		20			64			1,850			(5	)		1,929
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(21	)		(62	)		369			—			286
Provision (benefit) for income taxes		(5	)		(21	)		128			—			102
Equity in income of subsidiaries		123			71			—			(194	)		—
Income from continuing operations		107			30			241			(194	)		184
Income (loss) from discontinued operations, net of taxes		—			4			(13	)		—			(9	)
Net income		107			34			228			(194	)		175
Less: net income attributable to noncontrolling interests		—			—			68			—			68
Net income available to Genworth Financial, Inc.’s common stockholders	$	107		$	34		$	160		$	(194	)	$	107

79

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating income statement information for the three months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	1,108		$	—		$	1,108
Net investment income		(2	)		1			810			(4	)		805
Net investment gains (losses)		—			(1	)		21			—			20
Policy fees and other income		—			—			217			—			217
Total revenues		(2	)		—			2,156			(4	)		2,150
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			1,662			—			1,662
Interest credited		—			—			173			—			173
Acquisition and operating expenses, net of deferrals		13			—			256			—			269
Amortization of deferred acquisition costs and intangibles		—			—			94			—			94
Interest expense		—			69			12			(4	)		77
Total benefits and expenses		13			69			2,197			(4	)		2,275
Loss from continuing operations before income taxes and equity in loss of subsidiaries		(15	)		(69	)		(41	)		—			(125	)
Provision (benefit) for income taxes		(4	)		155			71			—			222
Equity in loss of subsidiaries		(369	)		(207	)		—			576			—
Loss from continuing operations		(380	)		(431	)		(112	)		576			(347	)
Income from discontinued operations, net of taxes		—			11			4			—			15
Net loss		(380	)		(420	)		(108	)		576			(332	)
Less: net income attributable to noncontrolling interests		—			—			48			—			48
Net loss available to Genworth Financial, Inc.’s common stockholders	$	(380	)	$	(420	)	$	(156	)	$	576		$	(380	)

80

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	3,382		$	—		$	3,382
Net investment income		(3	)		5			2,397			(11	)		2,388
Net investment gains (losses)		—			(12	)		232			—			220
Policy fees and other income		—			3			617			(1	)		619
Total revenues		(3	)		(4	)		6,628			(12	)		6,609
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			3,796			—			3,796
Interest credited		—			—			494			—			494
Acquisition and operating expenses, net of deferrals		48			(2	)		729			—			775
Amortization of deferred acquisition costs and intangibles		—			—			316			—			316
Interest expense		—			187			34			(12	)		209
Total benefits and expenses		48			185			5,369			(12	)		5,590
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(51	)		(189	)		1,259			—			1,019
Provision (benefit) for income taxes		(9	)		(65	)		422			—			348
Equity in income of subsidiaries		506			339			—			(845	)		—
Income from continuing operations		464			215			837			(845	)		671
Income (loss) from discontinued operations, net of taxes		—			4			(13	)		—			(9	)
Net income		464			219			824			(845	)		662
Less: net income attributable to noncontrolling interests		—			—			198			—			198
Net income available to Genworth Financial, Inc.’s common stockholders	$	464		$	219		$	626		$	(845	)	$	464

81

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	3,029		$	—		$	3,029
Net investment income		(3	)		1			2,386			(11	)		2,373
Net investment gains (losses)		—			(14	)		45			—			31
Policy fees and other income		—			(6	)		745			(1	)		738
Total revenues		(3	)		(19	)		6,205			(12	)		6,171
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			3,715			—			3,715
Interest credited		—			—			523			—			523
Acquisition and operating expenses, net of deferrals		118			38			834			—			990
Amortization of deferred acquisition costs and intangibles		—			—			305			—			305
Interest expense		1			210			63			(12	)		262
Total benefits and expenses		119			248			5,440			(12	)		5,795
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries		(122	)		(267	)		765			—			376
Provision (benefit) for income taxes		(31	)		88			298			—			355
Equity in income (loss) of subsidiaries		(62	)		78			—			(16	)		—
Income (loss) from continuing operations		(153	)		(277	)		467			(16	)		21
Loss from discontinued operations, net of taxes		(2	)		(7	)		(16	)		—			(25	)
Net income (loss)		(155	)		(284	)		451			(16	)		(4	)
Less: net income attributable to noncontrolling interests		—			—			151			—			151
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	(155	)	$	(284	)	$	300		$	(16	)	$	(155	)

82

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	107		$	34		$	228		$	(194	)	$	175
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		(72	)		(71	)		(89	)		143			(89	)
Derivatives qualifying as hedges		(12	)		(12	)		(12	)		24			(12	)
Foreign currency translation and other adjustments		24			12			80			(35	)		81
Total other comprehensive income (loss)		(60	)		(71	)		(21	)		132			(20	)
Total comprehensive income (loss)		47			(37	)		207			(62	)		155
Less: comprehensive income attributable to noncontrolling interests		—			—			108			—			108
Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders	$	47		$	(37	)	$	99		$	(62	)	$	47

The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net loss	$	(380	)	$	(420	)	$	(108	)	$	576		$	(332	)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		66			63			73			(130	)		72
Net unrealized gains (losses) on other-than-temporarily impaired securities		5			4			4			(8	)		5
Derivatives qualifying as hedges		54			54			57			(111	)		54
Foreign currency translation and other adjustments		(11	)		(3	)		—			13			(1	)
Total other comprehensive income (loss)		114			118			134			(236	)		130
Total comprehensive income (loss)		(266	)		(302	)		26			340			(202	)
Less: comprehensive income attributable to noncontrolling interests		—			—			64			—			64
Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders	$	(266	)	$	(302	)	$	(38	)	$	340		$	(266	)

83

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	464		$	219		$	824		$	(845	)	$	662
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		(155	)		(172	)		(173	)		327			(173	)
Net unrealized gains (losses) on other-than-temporarily impaired securities		1			1			1			(2	)		1
Derivatives qualifying as hedges		(33	)		(33	)		(32	)		65			(33	)
Foreign currency translation and other adjustments		128			109			260			(236	)		261
Total other comprehensive income (loss)		(59	)		(95	)		56			154			56
Total comprehensive income		405			124			880			(691	)		718
Less: comprehensive income attributable to noncontrolling interests		—			—			313			—			313
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders	$	405		$	124		$	567		$	(691	)	$	405

The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(155	)	$	(284	)	$	451	$	(16	)	$	(4	)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		1,600			1,555			1,625		(3,156	)		1,624
Net unrealized gains (losses) on other-than-temporarily impaired securities		6			5			6		(11	)		6
Derivatives qualifying as hedges		448			447			481		(928	)		448
Foreign currency translation and other adjustments		138			65			224		(204	)		223
Total other comprehensive income (loss)		2,192			2,072			2,336		(4,299	)		2,301
Total comprehensive income		2,037			1,788			2,787		(4,315	)		2,297
Less: comprehensive income attributable to noncontrolling interests		—			—			260		—			260
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders	$	2,037		$	1,788		$	2,527	$	(4,315	)	$	2,037

84

GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	464		$	219		$	824		$	(845	)	$	662
Less loss from discontinued operations, net of taxes		—			(4	)		13			—			9
Adjustments to reconcile net income to net cash from operating activities:
Equity in income from subsidiaries		(506	)		(339	)		—			845			—
Dividends from subsidiaries		—			119			(119	)		—			—
Amortization of fixed maturity securities discounts and premiums and limited partnerships		—			4			(111	)		—			(107	)
Net investment (gains) losses		—			12			(232	)		—			(220	)
Charges assessed to policyholders		—			—			(534	)		—			(534	)
Acquisition costs deferred		—			—			(67	)		—			(67	)
Amortization of deferred acquisition costs and intangibles		—			—			316			—			316
Deferred income taxes		6			(47	)		275			—			234
Trading securities, held-for-sale investments and derivative instruments		—			(46	)		762			—			716
Stock-based compensation expense		23			—			6			—			29
Change in certain assets and liabilities:
Accrued investment income and other assets		2			(2	)		(25	)		4			(21	)
Insurance reserves		—			—			1,202			—			1,202
Current tax liabilities		(6	)		(75	)		54			—			(27	)
Other liabilities, policy and contract claims and other policy-related balances		(29	)		34			(259	)		(6	)		(260	)
Net cash from operating activities		(46	)		(125	)		2,105			(2	)		1,932
Cash flows used by investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		—			—			3,396			—			3,396
Commercial mortgage loans		—			—			454			—			454
Restricted commercial mortgage loans related to securitization entities		—			—			18			—			18
Proceeds from sales of investments:
Fixed maturity and equity securities		—			—			3,269			—			3,269
Purchases and originations of investments:
Fixed maturity and equity securities		—			—			(6,709	)		—			(6,709	)
Commercial mortgage loans		—			—			(608	)		—			(608	)
Other invested assets, net		—			25			(548	)		2			(521	)
Policy loans, net		—			—			28			—			28
Intercompany notes receivable		—			(77	)		34			43			—
Capital contributions to subsidiaries		(7	)		—			7			—			—
Payments for business purchased, net of cash acquired		(7	)		—			2			—			(5	)
Net cash used by investing activities		(14	)		(52	)		(657	)		45			(678	)
Cash flows used by financing activities:
Deposits to universal life and investment contracts		—			—			902			—			902
Withdrawals from universal life and investment contracts		—			—			(2,003	)		—			(2,003	)
Repayment of borrowings related to securitization entities		—			—			(16	)		—			(16	)
Repurchase of subsidiary shares		—			—			(31	)		—			(31	)
Dividends paid to noncontrolling interests		—			—			(92	)		—			(92	)
Proceeds from intercompany notes payable		61			(35	)		17			(43	)		—
Other, net		(1	)		(32	)		3			—			(30	)
Net cash used by financing activities		60			(67	)		(1,220	)		(43	)		(1,270	)
Effect of exchange rate changes on cash and cash equivalents		—			—			68			—			68
Net change in cash and cash equivalents		—			(244	)		296			—			52
Cash and cash equivalents at beginning of period		—			998			1,786			—			2,784
Cash and cash equivalents at end of period	$	—		$	754		$	2,082		$	—		$	2,836

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(155	)	$	(284	)	$	451		$	(16	)	$	(4	)
Less loss from discontinued operations, net of taxes		2			7			16			—			25
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in (income) loss from subsidiaries		62			(78	)		—			16			—
Dividends from subsidiaries		—			250			(250	)		—			—
(Gain) loss on sale of businesses		—			1			(27	)		—			(26	)
Amortization of fixed maturity securities discounts and premiums and limited partnerships		—			3			(115	)		—			(112	)
Net investment (gains) losses		—			14			(45	)		—			(31	)
Charges assessed to policyholders		—			—			(574	)		—			(574	)
Acquisition costs deferred		—			—			(124	)		—			(124	)
Amortization of deferred acquisition costs and intangibles		—			—			305			—			305
Deferred income taxes		8			304			(139	)		—			173
Trading securities, held-for-sale investments and derivative instruments		—			5			754			—			759
Stock-based compensation expense		18			—			7			—			25
Change in certain assets and liabilities:
Accrued investment income and other assets		(3	)		(4	)		(246	)		(5	)		(258	)
Insurance reserves		—			—			691			—			691
Current tax liabilities		11			(4	)		37			—			44
Other liabilities, policy and contract claims and other policy-related balances		(1	)		(22	)		928			—			905
Net cash from operating activities		(58	)		192			1,669			(5	)		1,798
Cash flows used by investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		—			150			2,496			—			2,646
Commercial mortgage loans		—			—			555			—			555
Restricted commercial mortgage loans related to securitization entities		—			—			27			—			27
Proceeds from sales of investments:
Fixed maturity and equity securities		—			—			4,064			—			4,064
Purchases and originations of investments:
Fixed maturity and equity securities		—			—			(8,758	)		—			(8,758	)
Commercial mortgage loans		—			—			(405	)		—			(405	)
Other invested assets, net		—			—			(143	)		5			(138	)
Policy loans, net		—			—			(80	)		—			(80	)
Intercompany notes receivable		—			(58	)		(18	)		76			—
Proceeds from sale of businesses, net of cash transferred		—			1			38			—			39
Net cash used by investing activities		—			93			(2,224	)		81			(2,050	)
Cash flows used by financing activities:
Deposits to universal life and investment contracts		—			—			1,028			—			1,028
Withdrawals from universal life and investment contracts		—			—			(1,463	)		—			(1,463	)
Redemption of non-recourse funding obligations		—			—			(1,620	)		—			(1,620	)
Repayment and repurchase of long-term debt		—			(326	)		(36	)		—			(362	)
Repayment of borrowings related to securitization entities		—			—			(37	)		—			(37	)
Return of capital to noncontrolling interests		—			—			(70	)		—			(70	)
Dividends paid to noncontrolling interests		—			—			(126	)		—			(126	)
Proceeds from intercompany notes payable		58			18			—			(76	)		—
Other, net		—			(36	)		(13	)		—			(49	)
Net cash used by financing activities		58			(344	)		(2,337	)		(76	)		(2,699	)
Effect of exchange rate changes on cash and cash equivalents		—			—			36			—			36
Net change in cash and cash equivalents		—			(59	)		(2,856	)		—			(2,915	)
Cash and cash equivalents at beginning of period		—			1,124			4,869			—			5,993
Cash and cash equivalents at end of period	$	—		$	1,065		$	2,013		$	—		$	3,078

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GENWORTH FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Our insurance company subsidiaries are restricted by state and foreign laws and regulations as to the amount of dividends they may pay to their parent without regulatory approval in any year, the purpose of which is to protect affected insurance policyholders and contractholders, not stockholders. Any dividends in excess of limits are deemed “extraordinary” and require approval. Based on statutory results as of December 31, 2016, in accordance with applicable dividend restrictions, our subsidiaries could pay dividends of approximately $220 million to us in 2017 without obtaining regulatory approval, and the remaining net assets are considered restricted. While the $220 million is unrestricted, we do not expect our insurance subsidiaries to pay dividends to us in 2017 at this level as they need to retain capital for growth and to meet capital requirements and desired thresholds. As of September 30, 2017, Genworth Financial’s and Genworth Holdings’ subsidiaries had restricted net assets of $13.0 billion and $12.2 billion, respectively.

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

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included herein and with our 2016 Annual Report on Form 10-K. References herein to “Genworth,” the “Company,” “we” or “our” in are, unless the context otherwise requires, to Genworth Financial, Inc. on a consolidated basis.

Cautionary note regarding forward-looking statements

This report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Examples of forward-looking statements include statements we make relating to the China Oceanwide transaction. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, business, competitive, market, regulatory and other factors and risks, including, but not limited to, the following:

• risks related to the proposed transaction with China Oceanwide Holdings Group Co., Ltd. (“China Oceanwide”) including: our inability to complete the transaction in a timely manner or at all; the parties’ inability to obtain regulatory approvals, including from the Committee on Foreign Investment in the United States (“CFIUS”), or the possibility that such regulatory approvals may further delay the transaction or will not be received prior to November 30, 2017 (and either or both of the parties may not be willing to further waive their end date termination rights beyond November 30, 2017) or that materially burdensome or adverse regulatory conditions may be imposed or undesirable measures may be required in connection with any such regulatory approvals, including any mitigation approaches that may be necessary to obtain CFIUS approval (including conditions or measures that either or both of the parties may be unwilling to accept or undertake, as applicable); existing and potential legal proceedings may be instituted against us in connection with the transaction that may delay the transaction, make it more costly or ultimately preclude it; the risk that the proposed transaction disrupts our current plans and operations as a result of the consummation of the transaction; certain restrictions during the pendency of the transaction that may impact our ability to pursue certain business opportunities or strategic transactions; continued availability of capital and financing to us before, or in the absence of, the consummation of the transaction; further rating agency actions and downgrades in our debt or financial strength ratings; changes in applicable laws or regulations; our ability to recognize the anticipated benefits of the transaction; the amount of the costs, fees, expenses and other charges related to the transaction; the risks related to diverting management’s attention from our ongoing business operations; the merger agreement may be terminated in circumstances that would require us to pay China Oceanwide a fee; our ability to attract, recruit, retain and motivate current and prospective employees may be adversely affected; and disruptions and uncertainty relating to the transaction, whether or not it is completed, may harm our relationships with our employees, customers, distributors, vendors or other business partners, and may result in a negative impact on our business;

• strategic risks in the event the proposed transaction with China Oceanwide is not consummated including: our inability to successfully execute alternative strategic plans to effectively address our current business challenges (including with respect to the restructuring of our U.S. life insurance businesses, debt obligations, including our debt maturing in May 2018, cost savings, ratings and capital); our ability to continue to sell long-term care insurance policies; our inability to attract buyers for any businesses or other assets we may seek to sell, or securities we may seek to issue, in each case, in a timely manner and on anticipated terms; failure to obtain any required regulatory, stockholder and/or noteholder approvals or consents for such alternative strategic plans, or our challenges changing or

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being more costly or difficult to successfully address than currently anticipated or the benefits achieved being less than anticipated; inability to achieve anticipated cost-savings in a timely manner; adverse tax or accounting charges; and inability to increase the capital needed in our businesses in a timely manner and on anticipated terms, including through improved business performance, reinsurance or similar transactions, asset sales, securities offerings or otherwise, in each case as and when required;

• risks relating to estimates, assumptions and valuations including: risks related to the impact of our annual review of assumptions and methodologies related to our margin reviews in the fourth quarter of 2017, including risks that additional information obtained in finalizing our margin review in the fourth quarter of 2017 or other changes to assumptions or methodologies materially affect the impact on margins; inadequate reserves and the need to increase reserves (including as a result of any changes we may make to our assumptions, methodologies or otherwise in connection with periodic or other reviews); inaccurate models; deviations from our estimates and actuarial assumptions or other reasons in our long-term care insurance, life insurance and/or annuity businesses; accelerated amortization of deferred acquisition costs (“DAC”) and present value of future profits (“PVFP”) (including as a result of any changes we may make to our assumptions, methodologies or otherwise in connection with periodic or other reviews, including reviews we expect to carry out in the fourth quarter of 2017); adverse impact on our financial results as a result of projected profits followed by projected losses (as is currently the case with our long-term care insurance business); adverse impact on our results of operations, including our loss ratio as a result of our annual review of the premium earnings pattern for our mortgage insurance business in Australia (which we expect to carry out in the fourth quarter of 2017); and changes in valuation of fixed maturity, equity and trading securities;

• risks relating to economic, market and political conditions including: downturns and volatility in global economies and equity and credit markets; interest rates and changes in rates (particularly given the historically low interest rate environment) have adversely impacted, and may continue to materially adversely impact, our business and profitability; deterioration in economic conditions or a decline in home prices that adversely affect our loss experience in mortgage insurance; political and economic instability or changes in government policies; and fluctuations in foreign currency exchange rates and international securities markets;

• regulatory and legal risks including: extensive regulation of our businesses and changes in applicable laws and regulations (including changes to tax laws and regulations); litigation and regulatory investigations or other actions; dependence on dividends and other distributions from our subsidiaries (particularly our international subsidiaries) and the inability of any subsidiaries to pay dividends or make other distributions to us, including as a result of the performance of our subsidiaries and insurance, regulatory or corporate law restrictions; adverse change in regulatory requirements, including risk-based capital; changes in regulations adversely affecting our international operations; inability to maintain the private mortgage insurer eligibility requirements (“PMIERs”); inability of our U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements and hazardous financial condition standards; the influence of Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”) and a small number of large mortgage lenders on the U.S. mortgage insurance market and adverse changes to the role or structure of Fannie Mae and Freddie Mac; adverse changes in regulations affecting our mortgage insurance businesses; inability to continue to implement actions to mitigate the impact of statutory reserve requirements; impact of additional regulations pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act; and changes in accounting and reporting standards;

• liquidity, financial strength ratings, credit and counterparty risks including: insufficient internal sources to meet liquidity needs and limited or no access to capital (including the ability to obtain financing under a credit facility); future adverse rating agency actions, including with respect to rating downgrades or potential downgrades or being put on review for potential downgrade, all of which could have adverse implications for us, including with respect to key business relationships, product offerings, business results of operations, financial condition and capital needs, strategic plans, collateral obligations and

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availability and terms of hedging, reinsurance and borrowings; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of our fixed maturity securities portfolio; and defaults on our commercial mortgage loans or the mortgage loans underlying our investments in commercial mortgage-backed securities and volatility in performance;

• operational risks including: inability to retain, attract and motivate qualified employees or senior management; ineffective or inadequate risk management in identifying, controlling or mitigating risks; reliance on, and loss of, key customer or distribution relationships; availability, affordability and adequacy of reinsurance to protect us against losses; competition; competition in our mortgage insurance businesses from government and government-owned and government-sponsored enterprises (“GSEs”) offering mortgage insurance; the design and effectiveness of our disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations; and failure or any compromise of the security of our computer systems, disaster recovery systems and business continuity plans and failures to safeguard, or breaches of, our confidential information;

• insurance and product-related risks including: our inability to increase sufficiently, and in a timely manner, premiums on in-force long-term care insurance policies and/or reduce in-force benefits, and charge higher premiums on new policies, in each case, as currently anticipated and as may be required from time to time in the future (including as a result of our failure to obtain any necessary regulatory approvals or unwillingness or inability of policyholders to pay increased premiums), including to offset any impact on our margins in connection with our margin reviews in the fourth quarter of 2017; our inability to reflect future premium increases and other management actions in our margin calculation as anticipated, including in connection with our margin reviews in the fourth quarter of 2017; failure to sufficiently increase new sales for our long-term care insurance products; our inability to realize anticipated benefits of our rescissions, curtailments, loan modifications or other similar programs in our mortgage insurance businesses; premiums for the significant portion of our mortgage insurance risk in-force with high loan-to-value ratios may not be sufficient to compensate us for the greater risks associated with those policies; decreases in the volume of high loan-to-value mortgage originations or increases in mortgage insurance cancellations; increases in the use of alternatives to private mortgage insurance and reductions in the level of coverage selected; potential liabilities in connection with our U.S. contract underwriting services; and medical advances, such as genetic research and diagnostic imaging, and related legislation that impact policyholder behavior in ways adverse to us;

• other risks including: occurrence of natural or man-made disasters or a pandemic; impairments of or valuation allowances against our deferred tax assets; the possibility that in certain circumstances we will be obligated to make payments to General Electric Company (“GE”) under the tax matters agreement with GE even if our corresponding tax savings are never realized and payments could be accelerated in the event of certain changes in control; and provisions of our certificate of incorporation and bylaws and the tax matters agreement with GE may discourage takeover attempts and business combinations that stockholders might consider in their best interests; and

• risks relating to our common stock including: the continued suspension of payment of dividends; and stock price fluctuations.

We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

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Overview

Our business

We are dedicated to helping meet the homeownership and long-term care needs of our customers. We have the following five operating business segments:

• U.S. Mortgage Insurance. In the United States, we offer mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans (“flow mortgage insurance”). We selectively provide mortgage insurance on a bulk basis (“bulk mortgage insurance”) with essentially all of our bulk writings being prime-based.

• Canada Mortgage Insurance. We offer flow mortgage insurance and also provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk in Canada.

• Australia Mortgage Insurance. In Australia, we offer flow mortgage insurance and selectively provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk.

• U.S. Life Insurance. We offer long-term care insurance products as well as service traditional life insurance and fixed annuity products in the United States.

• Runoff. The Runoff segment includes the results of non-strategic products which are no longer actively sold but we continue to service our existing blocks of business. Our non-strategic products primarily include our variable annuity, variable life insurance, institutional, corporate-owned life insurance and other accident and health insurance products. Institutional products consist of: funding agreements, funding agreements backing notes (“FABNs”) and guaranteed investment contracts (“GICs”).

In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings, Inc. (“Genworth Holdings”) level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations.

Strategic Update

We continue to focus on improving business performance, addressing financial leverage and increasing financial and strategic flexibility across the organization. Our strategy includes maximizing our opportunities in our mortgage insurance businesses and restructuring our U.S. life insurance businesses.

China Oceanwide Transaction

On October 21, 2016, Genworth Financial entered into an agreement and plan of merger (the “Merger Agreement”) with Asia Pacific Global Capital Co., Ltd. (“the Parent”), a limited liability company incorporated in the People’s Republic of China, and Asia Pacific Global Capital USA Corporation (“Merger Sub”), a Delaware corporation and an indirect, wholly-owned subsidiary of the Parent. Subject to the terms and conditions of the Merger Agreement, including the satisfaction or waiver of certain conditions, Merger Sub would merge with and into Genworth Financial with Genworth Financial surviving the merger as an indirect, wholly-owned subsidiary of the Parent. The Parent is a newly formed subsidiary of China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, “China Oceanwide”). China Oceanwide has agreed to acquire all of our outstanding common stock for a total transaction value of approximately $2.7 billion, or $5.43 per share in cash. The agreement concluded our previously announced strategic review process, which we had undertaken over the previous two years. At a special meeting held on March 7, 2017, Genworth Financial’s stockholders voted on and approved a proposal to adopt the Merger Agreement.

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Genworth Financial and China Oceanwide continue to work towards satisfying the closing conditions of their proposed transaction as soon as possible. To date, we have announced approvals from the Virginia State Corporation Commission Bureau of Insurance, the North Carolina Department of Insurance, the South Carolina Department of Insurance and the Vermont Insurance Division. However, on October 2, 2017, Genworth Financial and China Oceanwide withdrew their joint voluntary notice to CFIUS, with an intent to refile with additional mitigation approaches. Both parties are actively engaged in developing these approaches, including the potential involvement of a U.S. third-party service provider, and anticipate refiling a new joint notice with CFIUS as soon as the terms of the additional mitigation approaches are determined. Genworth Financial and China Oceanwide are fully committed to developing an acceptable solution with CFIUS; however, there can be no assurance that CFIUS will ultimately agree to clear the transaction between Genworth Financial and China Oceanwide on terms acceptable to the parties or at all. In addition to approval and clearance by CFIUS, the closing of the proposed transaction remains subject to the receipt of required regulatory approvals in the U.S., China, and other international jurisdictions and other closing conditions. Genworth Financial and China Oceanwide also continue to be actively engaged with the other relevant regulators regarding the pending applications.

On August 21, 2017, Genworth Financial, the Parent and Merger Sub entered into a Waiver and Agreement pursuant to which Genworth Financial and the Parent each agreed to, among other things, waive until November 30, 2017 its right to terminate the Merger Agreement and abandon the merger in accordance with the terms of the Merger Agreement due to a failure of the merger to have been completed on or before August 31, 2017. Genworth Financial and China Oceanwide are also discussing an additional waiver of each party’s right to terminate the Merger Agreement beyond the November 30, 2017 deadline. If we are unable to reach an agreement as to a further extension of the deadline or are unable to satisfy the closing conditions by the applicable deadline, then either party may terminate the Merger Agreement. Genworth Financial and China Oceanwide remain committed to satisfying the closing conditions under the Merger Agreement as soon as possible.

As part of the transaction, China Oceanwide committed in the Merger Agreement to contribute $600 million of cash to Genworth Financial to address our debt maturing in May 2018, on or before its maturity, as well as $525 million of cash to our U.S. life insurance businesses. This contribution is in addition to $175 million of cash previously committed by Genworth Holdings to our U.S. life insurance businesses to pursue their restructuring as described below. These contributions, in addition to addressing the 2018 debt maturity, are intended to increase the likelihood of obtaining regulatory approvals for the China Oceanwide transaction as well as help achieve our strategic objectives of improving Genworth’s overall financial strength and flexibility and supporting the restructuring of our U.S. life insurance businesses, as described further below. Due to the delay in the timing of the closing of the transaction, we are currently reviewing potential refinancing options, which may include secured indebtedness, to address upcoming debt maturities in the event the transaction with China Oceanwide cannot be completed in a timely manner or at all. We could also utilize holding company cash and/or pursue potential asset sales to address upcoming debt maturities in the event the transaction with China Oceanwide cannot be completed. In the absence of the transaction with China Oceanwide or a refinancing alternative, we believe we would need to pursue asset sales to address our debt maturities, including potential sales of our mortgage insurance businesses in Canada and/or Australia. We are also evaluating options to insulate our U.S. mortgage insurance business from additional ratings pressure, including a potential partial sale, in the event a transaction with China Oceanwide cannot be completed.

If the China Oceanwide transaction is completed, we will be a standalone subsidiary of China Oceanwide and our senior management team will continue to lead the business from our current headquarters in Richmond, Virginia. Likewise, we intend to maintain our existing portfolio of businesses, including our mortgage insurance businesses in Australia and Canada. Our day-to-day operations are not expected to change as a result of this transaction.

Restructuring of U.S. Life Insurance Businesses

In February 2016, we announced that one of our strategic objectives was to separate, then isolate, through a series of internal transactions, our long-term care insurance business from our other U.S. life insurance

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businesses. We continued to pursue this plan in connection with the China Oceanwide transaction, with some differences from our previously announced restructuring plan. Our goal under the plan has been to align substantially all of our non-New York in-force life insurance and annuity business under Genworth Life and Annuity Insurance Company (“GLAIC”), our Virginia domiciled life insurance company, and substantially all of our non-New York long-term care insurance business under Genworth Life Insurance Company (“GLIC”), our Delaware domiciled life insurance company. As part of this strategic objective, effective April 1, 2017, GLAIC assumed risk on a coinsurance basis for certain blocks of term life insurance, universal life insurance and single premium whole life insurance from GLIC. Effective July 1, 2017, GLIC recaptured certain single premium deferred annuity products previously ceded to GLAIC. In addition, effective July 1, 2017, GLAIC assumed risk on a modified coinsurance basis for certain blocks of fixed annuities, including those single premium deferred annuity products recaptured by GLIC, and certain corporate-owned life insurance policies from GLIC. As a result, there was an adverse impact on GLIC’s risk-based capital ratio of approximately 15 points in the third quarter of 2017. However, the internal transactions had no impact on our consolidated results of operations and financial condition prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) as the financial impact of the intercompany reinsurance was eliminated in consolidation. These transactions complete our goal to align substantially all of our non-New York in-force life insurance and annuity business under GLAIC and substantially all of our non-New York long-term care insurance business under GLIC. All of these transactions were also required under the Merger Agreement with China Oceanwide. The reinsurance treaties effective July 1, 2017 include provisions that require us to unwind or void these treaties in the event the merger transaction with China Oceanwide is terminated.

In addition, based on China Oceanwide’s $525 million capital commitment under the Merger Agreement, together with the $175 million of cash previously committed by Genworth Holdings, a Genworth holding company would seek, in connection with the completion of the China Oceanwide transaction, the purchase of GLAIC from GLIC at fair market value. Together with the internal reinsurance transactions completed in April 2017 and July 2017, finalization of the GLAIC sale, if completed, would isolate our non-New York long-term care insurance business from our other non-New York U.S. life insurance businesses and achieve this strategic objective, and regulatory approval to do so is a condition to the closing of the China Oceanwide transaction. China Oceanwide has no future obligation and has expressed no intention to contribute additional capital to support our legacy long-term care insurance business.

Separating and isolating our long-term care insurance business has been an important strategic objective, because we believe it would:

• help to isolate the downside risk from our long-term care insurance business that is putting downward pressure on the ratings of Genworth Holdings and our other subsidiaries,

• allow any future dividends from GLAIC to be paid directly to the holding company, which increases Genworth Holdings’ liquidity and ability to repay and/or refinance its indebtedness, and

• give a clearer picture of the necessity for the long-term care insurance rate actions that we are working towards today.

Strategic Alternatives

If the China Oceanwide transaction is not completed, we will continue to explore strategic alternatives and financing options to address our ongoing challenges, including our May 2018 debt maturity and other debt service obligations. Prior to the announcement of the China Oceanwide transaction, we previously disclosed that after discussions with regulators, we believed as a first step, we might only be able to distribute a portion of GLAIC from GLIC. As a result of the recent performance of our long-term care and life insurance businesses and the charges we recorded in the third and fourth quarters of 2016, absent the China Oceanwide transaction and any alternative commitment of external capital, we believe there would be: considerable doubt as to the feasibility and timing of achieving a partial unstacking of GLAIC in the foreseeable future, if at all; increased pressure on

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and potential downgrades of our financial strength ratings, particularly for our mortgage insurance businesses, which could affect our ability to maintain our market share of the U.S. mortgage insurance industry; limitation on our ability to continue to write new long-term care insurance policies; and other limitations on our holding company liquidity and ability to service and/or refinance our holding company debt. In the absence of the China Oceanwide transaction and/or a refinancing alternative, which we can neither predict nor guarantee, we believe we would need to pursue asset sales to address these challenges, including potential sales of our mortgage insurance businesses in Canada and/or Australia. Asset sales or changes to our financial projections, including changes that anticipate planned asset sales, may negatively impact our ability to realize certain foreign tax credits or other deferred tax assets and have a resulting material adverse effect on our results of operation. We are also evaluating options to insulate our U.S. mortgage insurance business from additional ratings pressure, including a potential partial sale, in the event a transaction with China Oceanwide cannot be completed.

Ongoing Priorities

Stabilizing our long-term care insurance business continues to be our long-term goal. We will continue to execute against this objective primarily through our multi-year long-term care insurance rate action plan. Increasing premiums and/or benefit modifications on our legacy long-term care insurance policies are critical to our ability to increase the capital levels needed to support the business. In addition, reducing debt will remain a high priority. We believe that increased financial support and our strengthened financial foundation resulting from the China Oceanwide transaction would provide us with more options to manage our debt maturities and reduce overall indebtedness, which in turn is intended to improve our credit and ratings profile over time. Finally, we also believe that the completion of the China Oceanwide transaction would allow us to place greater focus on the future of our long-term care and mortgage insurance businesses while continuing to service our existing policyholders.

Executive Summary of Financial Results

Below is an executive summary of our consolidated financial results for the periods indicated. Amounts below are net of taxes, unless otherwise indicated.

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

• We had net income available to Genworth Financial, Inc.’s common stockholders of $107 million during the three months ended September 30, 2017 and a net loss available to Genworth Financial, Inc.’s common stockholders of $380 million during the three months ended September 30, 2016.

• In our long-term care insurance business, our adjusted operating loss available to Genworth Financial, Inc.’s common stockholders was lower for the three months ended September 30, 2017 largely from an increase of $283 million in claim reserves, net of reinsurance, in the prior year as a result of our annual claims assumption review. As a result of this review, we updated several assumptions and methodologies primarily impacting claim termination rates, benefit utilization rates and incurred but not reported reserves. This increase was partially offset by higher severity on new claims in the current year. The current year also included $8 million of higher premiums and reduced benefits from in-force rate actions approved and implemented.

• During the third quarter of 2016, we recorded a valuation allowance of $265 million on deferred tax assets in Corporate and Other activities. In light of the prior year’s financial projections, which included the projected impact to current and future earnings associated with higher expected claim costs in our long-term care insurance business as a result of our annual claim reserves review in the third quarter of 2016 and sustained low interest rates, we recorded a valuation allowance related to foreign tax credits that we no longer expect to realize. The financial projections did not include any benefits or aspects of the announced transaction with China Oceanwide nor did they assume any charges associated with tax attribute limitations that would occur with a change in ownership.

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Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

• We had net income available to Genworth Financial, Inc.’s common stockholders of $464 million during the nine months ended September 30, 2017 and a net loss available to Genworth Financial, Inc.’s common stockholders of $155 million during the nine months ended September 30, 2016.

• Benefits and other changes in policy reserves decreased across our mortgage insurance businesses, particularly in our U.S. Mortgage Insurance and Canada Mortgage Insurance segments, which decreased pre-tax by $45 million and $39 million, respectively. These decreases were largely attributable to the favorable developments in our loss ratios discussed below.

• The loss ratios in our U.S. Mortgage Insurance and Canada Mortgage Insurance segments were 13% and 11%, respectively, for the nine months ended September 30, 2017. The loss ratio in our U.S. Mortgage Insurance segment was driven mostly by improvements in the net benefit from cures and aging of existing delinquencies and an increase in earned premiums in the current year. A continued decline in new flow delinquencies, net of cures, mostly from overall improving regional macroeconomic conditions, along with a lower average reserve per delinquency benefited the loss ratio in our Canada Mortgage Insurance segment.

• On March 1, 2017, the Pennsylvania Commonwealth Court approved petitions to liquidate Penn Treaty Network America Insurance Company and American Network Insurance Company (“Penn Treaty”) due to financial difficulties that could not be resolved through rehabilitation. As a result of the plan of Penn Treaty liquidation, our long-term care insurance business recorded net guaranty fund assessments of $14 million in the first quarter of 2017.

• In our long-term care insurance business, the adjusted operating loss available to Genworth Financial, Inc.’s common stockholders for the nine months ended September 30, 2016 was largely from an increase of $283 million in claim reserves, net of reinsurance, as discussed above. The current year included higher incremental premiums and reduced benefits of $18 million from in-force rate actions approved and implemented. Our long-term care insurance results were also favorably impacted by seasonally higher claim terminations during the first half of 2017.

• During the nine months ended September 30, 2016, we recorded a valuation allowance of $265 million on deferred tax assets in Corporate and Other activities, as discussed above.

• During the nine months ended September 30, 2016, we recorded a $45 million expense related to the settlement of In re Genworth Financial, Inc. Securities Litigation and an additional $6 million of legal fees and expenses related to this litigation. We also recorded $3 million of additional legal fees in the prior year related to other pending litigation.

• During the nine months ended September 30, 2016, we recorded $14 million related to restructuring costs as part of an expense reduction plan as we evaluated and appropriately sized our organizational needs and expenses. In addition, we recorded a loss of $6 million from the write-off of deferred borrowing costs in connection with the early extinguishment of non-recourse funding obligations as part of a life block transaction completed in the first quarter of 2016.

Significant Developments

The periods under review include, among others, the following significant developments.

Dispositions

• Completed sale of a life insurance block. In January 2016, GLAIC, our indirect wholly-owned subsidiary, entered into a reinsurance agreement to coinsure certain term life insurance business with Protective Life Insurance Company as part of a life block transaction. This transaction generated capital in excess of $150 million in aggregate to Genworth, including tax benefits of approximately

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$175 million to the holding company that were settled in July 2016, which is committed to be used in executing the restructuring plan for our U.S. life insurance businesses.

• Completed sale of our mortgage insurance business in Europe. On May 9, 2016, we completed the sale of our European mortgage insurance business to AmTrust Financial Services, Inc. for $55 million and received net proceeds of approximately $50 million. During the nine months ended September 30, 2016, we recorded an after-tax gain of $18 million related to the sale of our mortgage insurance business in Europe.

• Sale of our lifestyle protection business. During the three months ended September 30, 2017, we recorded an additional loss of $9 million associated with the sale of our lifestyle protection insurance business primarily related to an adjustment of certain claims previously included in discontinued operations and tax items. We retained liabilities for certain claims, taxes and sales practices that occurred while we owned the lifestyle protection insurance business. We have established our current best estimates for these liabilities, where appropriate; however, there may be future adjustments to these estimates. During the three and nine months ended September 30, 2016, we recorded a gain of $15 million and a loss of $25 million related to the sale of our lifestyle protection insurance business, respectively.

U.S. Life Insurance

• Rate actions in our long-term care insurance business. As part of our strategy for our long-term care insurance business, we have been implementing, and expect to continue to pursue, significant premium rate increases on older generation blocks of business in order to bring those blocks closer to a break-even point over time and reduce the strain on earnings and capital. We are also requesting premium rate increases on newer blocks of business, as needed, some of which may be significant, to help bring their loss ratios back towards their original pricing. For all of these rate action filings, we received 75 filing approvals from 32 states during the nine months ended September 30, 2017, representing a weighted-average increase of 27% on approximately $457 million in annualized in-force premiums. We also submitted 131 new filings in 39 states during the nine months ended September 30, 2017 on approximately $828 million in annualized in-force premiums.

• Restructuring and business alignment. The internal reinsurance transactions completed in April 2017 and July 2017, as discussed above, complete our goal to align substantially all of our in-force life insurance and annuity business under GLAIC and substantially all of our long-term care insurance business under GLIC.

• Suspension of sales of our traditional life insurance and fixed annuity products. As part of our initiative announced on February 4, 2016 to restructure our U.S. life insurance businesses, we decided to suspend sales of our traditional life insurance and fixed annuity products on March 7, 2016 given the continued impact of ratings and recent sales levels of these products. This action, along with reducing expense levels in our U.S. life insurance businesses resulted in approximately $50 million of annualized pre-tax cash expense savings.

Liquidity and Capital Resources

• Genworth MI Canada Inc. (“Genworth Canada”) New Credit Facility. On September 29, 2017, Genworth Canada, our majority-owned subsidiary, entered into a CAD$200 million syndicated senior unsecured revolving credit facility, which matures on September 29, 2022. Any borrowings under Genworth Canada’s credit facility will bear interest at a rate per annum equal to, at the option of Genworth Canada, either a fixed rate or a variable rate pursuant to the terms of the credit agreement. The credit facility includes customary representations, warranties, covenants, terms and conditions. This syndicated credit facility replaced an existing CAD$100 million senior unsecured revolving credit facility which was cancelled on September 29, 2017. As of September 30, 2017, there was no amount outstanding under Genworth Canada’s credit facility and all of the covenants were fully met.

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• Redemption of Genworth Holdings’ 2016 notes. In January 2016, Genworth Holdings redeemed $298 million of its 8.625% senior notes due 2016 issued in December 2009 (the “2016 Notes”) and paid a make-whole premium of approximately $20 million pre-tax in addition to accrued and unpaid interest using cash proceeds received from the sale of our lifestyle protection insurance business.

• Repurchase of Genworth Holdings senior notes. During the three months ended March 31, 2016, we repurchased $28 million principal amount of Genworth Holdings’ notes with various maturity dates for a pre-tax gain of $4 million and paid accrued and unpaid interest thereon.

• Completion of Genworth Holdings’ bond consent solicitation. During the three months ended March 31, 2016, Genworth Holdings paid total fees related to the bond consent solicitation of approximately $61 million, including bond consent fees of $43 million, which were deferred, as well as broker, advisor and investment banking fees of $18 million, which were expensed.

• Redemption of Non-Recourse Funding Obligations. During the three months ended March 31, 2016, in connection with a life block transaction, River Lake Insurance Company, our indirect wholly-owned subsidiary, redeemed $975 million of its total outstanding floating rate subordinated notes due in 2033 and River Lake Insurance Company II, our indirect wholly-owned subsidiary, redeemed $645 million of its total outstanding floating rate subordinated notes due in 2035 for a pre-tax loss of $9 million from the write-off of deferred borrowing costs.

Financial Strength Ratings

Ratings with respect to the financial strength of operating subsidiaries are an important factor in establishing the competitive position of insurance companies. Ratings are important to maintaining public confidence in us and our ability to market our products. Rating organizations review the financial performance and condition of most insurers and provide opinions regarding financial strength, operating performance and ability to meet obligations to policyholders.

As of November 2, 2017, our principal mortgage insurance subsidiaries were rated in terms of financial strength by Standard & Poor’s Financial Services, LLC (“S&P”), Moody’s Investor Service, Inc. (“Moody’s”) and Dominion Bond Rating Service (“DBRS”) as follows:

Company	S&P rating	Moody’s rating	DBRS rating
Genworth Mortgage Insurance Corporation	BB+ (Marginal)	Ba1 (Questionable)	Not rated
Genworth Financial Mortgage Insurance Company Canada	A+ (Strong)	Not rated	AA (Superior)
Genworth Financial Mortgage Insurance Pty. Limited (Australia) (1)	A+ (Strong)	Baa1 (Adequate)	Not rated

⁽¹⁾ Also rated “A+” by Fitch Ratings (“Fitch”).

As of November 2, 2017, our principal life insurance subsidiaries were rated in terms of financial strength by S&P, Moody’s and A.M. Best Company, Inc. (“A.M. Best”) as follows:

Company	S&P rating	Moody’s rating	A.M. Best rating
Genworth Life Insurance Company	B+ (Weak)	B2 (Poor)	B (Fair)
Genworth Life and Annuity Insurance Company	B+ (Weak)	Ba1 (Questionable)	B++ (Good)
Genworth Life Insurance Company of New York	B+ (Weak)	B2 (Poor)	B (Fair)

The S&P, Moody’s, DBRS and A.M. Best financial strength ratings of our operating companies are not designed to be, and do not serve as, measures of protection or valuation offered to investors. These financial strength ratings should not be relied on with respect to making an investment in our securities.

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S&P states that insurers rated “A” (Strong), “BB” (Marginal) or “B” (Weak) have strong, marginal or weak financial security characteristics, respectively. The “A,” “BB” and “B” ranges are the third-, fifth- and sixth-highest of nine financial strength rating ranges assigned by S&P, which range from “AAA” to “R.” A plus (+) or minus (-) shows relative standing within a major rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “A+,” “BB+” and “B+” ratings are the fifth-, eleventh- and fourteenth-highest of S&P’s 21 ratings categories.

On September 18, 2017, based largely on regulatory approval uncertainty pertaining to the China Oceanwide transaction, S&P revised Genworth Financial and Genworth Holding’s CreditWatch status from developing implications to negative implications. S&P downgraded the financial strength rating of our principal life insurance subsidiaries; GLIC, Genworth Life Insurance Company of New York (“GLICNY”) and GLAIC from BB- (Marginal) to B+ (Weak), and maintained the CreditWatch status of GLIC and GLICNY at negative implications and GLAIC at developing implications. S&P’s rating actions were also based on their negative view of the operating performance of our U.S. Life Insurance segment, the ongoing impact of the low interest rate environment and the further need for premium rate increases in our long-term care insurance business. S&P also affirmed the financial strength rating of Genworth Mortgage Insurance Corporation (“GMICO”) at BB+ (Marginal), however, revised GMICO’s CreditWatch status from developing implications to negative implications. The financial strength ratings of Genworth Financial Mortgage Insurance Company Canada and Genworth Financial Mortgage Insurance Pty. Limited (Australia) were also affirmed at A+ (Strong).

Moody’s states that insurance companies rated “Baa” (Adequate) offer adequate financial security and that insurance companies rated “Ba” (Questionable) or “B” (Poor) offer questionable financial security. The “Baa” (Adequate), “Ba” (Questionable) and “B” (Poor) ranges are the fourth-, fifth- and sixth-highest, respectively, of nine financial strength rating ranges assigned by Moody’s, which range from “Aaa” to “C.” Numeric modifiers are used to refer to the ranking within the group, with 1 being the highest and 3 being the lowest. These modifiers are not added to ratings in the “Aaa” category or to ratings below the “Caa” category. Accordingly, the “Baa1,” “Ba1” and “B2” ratings are the eighth-, eleventh- and fifteenth-highest, respectively, of Moody’s 21 ratings categories.

On October 3, 2017, which followed our recent announcement that we had withdrawn our joint voluntary notice with CFIUS with an intent to refile, Moody’s downgraded the credit ratings of Genworth Holdings senior unsecured debt from Ba3 (Questionable) to B2 (Poor), downgraded the financial strength ratings of GLIC and GLICNY from Ba3 (Questionable) to B2 (Poor) and downgraded GLAIC from Baa2 (Adequate) to Ba1 (Questionable). Moody’s downgrade was based principally upon the uncertain financial flexibility at Genworth Holdings to address upcoming debt maturities, execution risk associated with closing the China Oceanwide transaction and continued risk associated with our long-term care insurance business. On September 13, 2017, Moody’s downgraded the financial strength rating of Genworth Financial Mortgage Insurance Pty. Limited (Australia) from A3 (Good) to Baa1 (Adequate). Moody’s downgrade reflects their risk assessment surrounding the Australian housing market, which in their view, has higher risk and lower demand for domestic lenders’ mortgage insurance products. On March 10, 2017, Moody’s downgraded the financial strength rating of GLIC and GLICNY from Ba2 (Questionable) to Ba3 (Questionable). Moody’s downgrade was principally related to a reduction in our long-term care insurance margins, uncertainty related to future long-term care insurance margins and reliance on significant future rate actions, the approval for which varies by state and can take several years.

DBRS states that long-term obligations rated “AA” are of superior credit quality. The capacity for the payment of financial obligations is considered high and unlikely to be significantly vulnerable to future events. Credit quality differs from “AAA” only to a small degree. On July 21, 2017, DBRS confirmed the financial strength rating of Genworth Financial Mortgage Insurance Company Canada at AA (Superior). The financial strength rating confirmation reflects the company’s market position, insurance portfolio and risk analytics, as well as its capital position relative to the capital required to meet insurance claim obligations.

A.M. Best states that the “B++” (Good) rating is assigned to those companies that have, in its opinion, a good ability to meet their ongoing insurance obligations while “B” (Fair) is assigned to those companies that

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have, in its opinion, a fair ability to meet their ongoing insurance obligations. The “B++” (Good) and “B” (Fair) ratings are the fifth- and seventh-highest of 15 ratings assigned by A.M. Best, which range from “A++” to “F.”

We also solicit a rating from Fitch for our Australian mortgage insurance subsidiary. Fitch states that “A” (Strong) rated insurance companies are viewed as possessing strong capacity to meet policyholder and contract obligations. The “A” rating category is the third-highest of nine financial strength rating categories, which range from “AAA” to “C.” The symbol (+) or (-) may be appended to a rating to indicate the relative position of a credit within a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “B” category. Accordingly, the “A+” rating is the fifth-highest of Fitch’s 21 ratings categories.

S&P, Moody’s, DBRS, A.M. Best and Fitch review their ratings periodically and we cannot assure you that we will maintain our current ratings in the future. Other agencies may also rate our company or our insurance subsidiaries on a solicited or an unsolicited basis. We do not provide information to agencies issuing unsolicited ratings and we cannot ensure that any agencies that rate our company or our insurance subsidiaries on an unsolicited basis will continue to do so.

For a discussion of the impacts of the recent rating agency actions on our derivative instruments, see “Item 2—Management’s Discussion and Analysis of Financial Conditions and Results of Operations—Investments and Derivative Instruments.”

For a discussion of the risks associated with ratings actions, see “Item 1A Risk Factors—Recent adverse rating agency actions have resulted in a loss of business and adversely affected our results of operations, financial condition and business and future adverse rating actions could have a further and more significant adverse impact on us” in our 2016 Annual Report on Form 10-K.

Consolidated

General Trends and Conditions

The stability of both the financial markets and global economies in which we operate impacts the sales, revenue growth and profitability trends of our businesses as well as value of assets and liabilities. The U.S. and several international financial markets have been impacted by concerns regarding global economies and the rate and strength of recovery, particularly given recent political and geographical events in East Asia, Europe and the Middle East. Slower growth and higher debt levels in China have created more uncertainty for global economies, heightened by S&P’s and Moody’s downgrade of the financial strength rating of China in September 2017 and May 2017, respectively. Although some of our businesses have started to realize benefits in their financial results from improvements in the general macroeconomic environment, particularly our mortgage insurance businesses in the U.S. and Canada, we continue to operate in a challenging economic environment characterized by slow global growth, fluctuating oil and commodity prices and very low interest rates. Interest rates remain at historically low levels despite the fact the U.S. Federal Reserve has raised its benchmark lending rate two times in 2017 and market expectations remain for one additional rate increase during 2017. Additionally, during the third quarter of 2017, the U.S. Federal Reserve announced that it would begin to normalize monetary policy and scale back quantitative easing. Despite the Federal Reserve’s actions, U.S. Treasury yields remained lower throughout the third quarter of 2017 but rose significantly in the last week of September 2017, in response to potential tax reform. However, pro-growth stimulus policies are still uncertain and weaker inflation data has investors more cautious on the direction of longer term interest rates. The U.S. equity markets increased and credit spreads tightened during the third quarter of 2017. Spreads initially widened when geopolitical issues and natural disasters arose, but quickly tightened driven by both positive economic data and corporate profits. U.S. fixed income markets saw reduced issuances, but demand from foreign and domestic investors continued to support valuations. Global equity markets were generally higher and the economies of the Eurozone countries continue to improve. For a discussion of the risks associated with interest rates, see “Item 1A Risk Factors—Interest rates and changes in rates could materially adversely affect our business and profitability” in our 2016 Annual Report on Form 10-K.

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Slow or varied levels of economic growth, coupled with uncertain financial markets and economic outlooks, changes in government policy, regulatory reforms and other changes in market conditions, influenced, and we believe will continue to influence, investment and spending decisions by consumers and businesses as they adjust their consumption, debt, capital and risk profiles in response to these conditions. These trends change as investor confidence in the markets and the outlook for some consumers and businesses shift. As a result, our sales, revenues and profitability trends of certain insurance and investment products as well as the value of assets and liabilities have been and could be further impacted going forward. In particular, factors such as government spending, monetary policies, the volatility and strength of the capital markets, anticipated tax policy changes and the impact of global financial regulation reform will continue to affect economic and business outlooks, level of interest rates and consumer behaviors moving forward.

The U.S. and international governments, the Federal Reserve, other central banks and other legislative and regulatory bodies have taken certain actions to support the economy and capital markets, influence interest rates, influence housing markets and mortgage servicing and provide liquidity to promote economic growth. These include various mortgage restructuring programs implemented or under consideration by the GSEs, lenders, servicers and the U.S. government. Outside of the United States, various governments and central banks have taken actions to stimulate economies, stabilize financial systems and improve market liquidity. In aggregate, these actions had a positive effect in the short term on the economies of these countries and their markets; however, there can be no assurance as to the future impact these types of actions may have on the economic and financial markets, including levels of interest rates and volatility. A delayed economic recovery period, a U.S. or global recession or regional or global financial crisis could materially and adversely affect our business, financial condition and results of operations.

Consolidated Results of Operations

The following is a discussion of our consolidated results of operations. For a discussion of our segment results, see “—Results of Operations and Selected Financial and Operating Performance Measures by Segment.”

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Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

The following table sets forth the consolidated results of operations for the periods indicated:

	Three months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	1,135		$	1,108		$	27		2	%
Net investment income		797			805			(8	)	(1	)%
Net investment gains (losses)		85			20			65		NM	(1)
Policy fees and other income		198			217			(19	)	(9	)%
Total revenues		2,215			2,150			65		3	%
Benefits and expenses:
Benefits and other changes in policy reserves		1,344			1,662			(318	)	(19	)%
Interest credited		164			173			(9	)	(5	)%
Acquisition and operating expenses, net of deferrals		265			269			(4	)	(1	)%
Amortization of deferred acquisition costs and intangibles		83			94			(11	)	(12	)%
Interest expense		73			77			(4	)	(5	)%
Total benefits and expenses		1,929			2,275			(346	)	(15	)%
Income (loss) from continuing operations before income taxes		286			(125	)		411		NM	(1)
Provision for income taxes		102			222			(120	)	(54	)%
Income (loss) from continuing operations		184			(347	)		531		153	%
Income (loss) from discontinued operations, net of taxes		(9	)		15			(24	)	(160	)%
Net income (loss)		175			(332	)		507		153	%
Less: net income attributable to noncontrolling interests		68			48			20		42	%
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	107		$	(380	)	$	487		128	%

⁽¹⁾  We define “NM” as not meaningful for increases or decreases greater than 200%.

Premiums. Premiums consist primarily of premiums earned on insurance products for mortgage, long-term care, life and accident and health insurance, single premium immediate annuities and structured settlements with life contingencies.

• Our U.S. Life Insurance segment increased $23 million. Our long-term care insurance business increased $31 million largely from $21 million of increased premiums in the current year from in-force rate actions approved and implemented. Our life insurance business decreased $8 million mainly driven by continued runoff of our term life insurance products, including higher lapses primarily from our large 15-year and 20-year term life insurance blocks entering their post-level guaranteed premium rate periods in the current year.

• Our Canada Mortgage Insurance segment increased $7 million principally from the seasoning of our larger, more recent in-force blocks of business.

• Our U.S. Mortgage Insurance segment increased $6 million mostly attributable to higher average flow insurance in-force, partially offset by lower rates on our mortgage insurance in-force in the current year.

• Our Australia Mortgage Insurance segment decreased $10 million largely due to the seasoning of our smaller prior year in-force blocks of business and lower policy cancellations in the current year. The three months ended September 30, 2017 included an increase of $3 million attributable to changes in foreign exchange rates.

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Net investment income. Net investment income represents the income earned on our investments. For discussion of the change in net investment income, see the comparison for this line item under “—Investments and Derivative Instruments.”

Net investment gains (losses). Net investment gains (losses) consist primarily of realized gains and losses from the sale or impairment of our investments, unrealized and realized gains and losses from our trading securities and derivative instruments. For discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.”

Policy fees and other income. Policy fees and other income consists primarily of fees assessed against policyholder and contractholder account values, surrender charges, cost of insurance assessed on universal and term universal life insurance policies, advisory and administration service fees assessed on investment contractholder account values, broker/dealer commission revenues and other fees. Our U.S. Life Insurance segment decreased $21 million mostly attributable to our life insurance business primarily as a result of suspending sales of these products on March 7, 2016 and a decline in our term universal and universal life insurance in-force blocks in the current year. The decrease was also driven by an $8 million unfavorable model refinement in the current year.

Benefits and other changes in policy reserves. Benefits and other changes in policy reserves consist primarily of claim costs incurred related to mortgage insurance products and benefits paid and reserve activity related to current claims and future policy benefits on insurance and investment products for long-term care, life and accident and health insurance, structured settlements and single premium immediate annuities with life contingencies.

• Our U.S. Life Insurance segment decreased $301 million. Our long-term care insurance business decreased $366 million principally from the completion of our annual review of our claim reserves conducted during the third quarter of 2016 which resulted in higher claim reserves of $435 million, net of reinsurance. The decrease was partially offset by aging and growth of the in-force block, higher severity on new claims and a less favorable impact of $7 million from reduced benefits in the current year related to in-force rate actions approved and implemented. Our life insurance business increased $64 million primarily attributable to a $30 million unfavorable model refinement, unfavorable mortality and higher universal life insurance reserves in the current year reflecting our previously updated assumptions from the fourth quarter of 2016. Our fixed annuities business increased $1 million as $3 million of higher reserves from loss recognition testing in our fixed immediate annuity products were mostly offset by lower interest credited in the current year.

• Our Canada Mortgage Insurance segment decreased $12 million largely from lower new delinquencies, net of cures, and from a lower average reserve per delinquency in the current year.

• Our Australia Mortgage Insurance segment decreased $8 million largely attributable to lower new delinquencies, net of cures, and from improved aging of existing delinquencies primarily in commodity-dependent regions in the current year.

• Our U.S. Mortgage Insurance segment decreased $1 million primarily due to favorable net cures and aging of existing delinquencies, mostly offset by a favorable adjustment of $10 million to our loss reserves associated with lower expected claim rates on early stage delinquencies, partially offset by higher claim severity on late stage delinquencies in the prior year that did not recur.

Interest credited. Interest credited represents interest credited on behalf of policyholder and contractholder general account balances. Our U.S. Life Insurance segment decreased $12 million primarily related to our fixed annuities business predominantly from lower average account values in the current year.

Acquisition and operating expenses, net of deferrals. Acquisition and operating expenses, net of deferrals, represent costs and expenses related to the acquisition and ongoing maintenance of insurance and investment

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contracts, including commissions, policy issuance expenses and other underwriting and general operating costs. These costs and expenses are net of amounts that are capitalized and deferred, which are costs and expenses that are related directly to the successful acquisition of new or renewal insurance policies and investment contracts, such as first-year commissions in excess of ultimate renewal commissions and other policy issuance expenses.

• Our Australia Mortgage Insurance segment decreased $5 million primarily from a change in the classification of contract fees amortization expense, which we began recording to amortization of DAC and intangibles as of the second quarter of 2017.

• Our Runoff segment decreased $4 million mostly from lower state guaranty fund assessments in the current year.

• Our U.S. Mortgage Insurance segment decreased $2 million primarily from lower production costs in the current year.

• Corporate and Other activities increased $8 million mainly driven by higher consulting fees in the current year.

Amortization of deferred acquisition costs and intangibles. Amortization of deferred acquisition costs and intangibles consists primarily of the amortization of acquisition costs that are capitalized, PVFP and capitalized software.

• Our U.S. Life Insurance segment decreased $19 million driven mostly by our life insurance business principally as a result of a net $15 million favorable model refinement in the current year. The decrease was partially offset by higher amortization in our term universal life insurance product reflecting previously updated lapse assumptions. In the current year, we have also experienced higher lapses and accelerated DAC amortization associated with our large 15-year and 20-year term life insurance blocks entering their post-level guaranteed level premium rate periods.

• Our Australia Mortgage Insurance segment increased $6 million principally as a result of a change in the classification of contract fees amortization expense that was previously recorded to acquisition and operating expenses, net of deferrals, as discussed above.

Interest expense. Interest expense represents interest related to our borrowings that are incurred at Genworth Holdings or subsidiaries and our non-recourse funding obligations and interest expense related to the Tax Matters Agreement and certain reinsurance arrangements being accounted for as deposits. Corporate and Other activities decreased $4 million largely driven by a contractual change in our junior subordinated notes related to an interest rate change from fixed to floating rates in the current year.

Provision for income taxes. The effective tax rate was 35.5% for the three months ended September 30, 2017 compared to (179.0)% for the three months ended September 30, 2016. The effective tax rate for the three months ended September 30, 2017 was impacted by higher tax benefits from lower taxed foreign income. The effective tax rate for the three months ended September 30, 2016 was impacted by a valuation allowance of $265 million recorded on deferred tax assets related to foreign tax credits that we no longer expect to realize.

Net income attributable to noncontrolling interests. Net income attributable to noncontrolling interests represents the portion of equity in a subsidiary attributable to third parties.

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Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

The following table sets forth the consolidated results of operations for the periods indicated:

	Nine months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	3,382		$	3,029		$	353		12	%
Net investment income		2,388			2,373			15		1	%
Net investment gains (losses)		220			31			189		NM	(1)
Policy fees and other income		619			738			(119	)	(16	)%
Total revenues		6,609			6,171			438		7	%
Benefits and expenses:
Benefits and other changes in policy reserves		3,796			3,715			81		2	%
Interest credited		494			523			(29	)	(6	)%
Acquisition and operating expenses, net of deferrals		775			990			(215	)	(22	)%
Amortization of deferred acquisition costs and intangibles		316			305			11		4	%
Interest expense		209			262			(53	)	(20	)%
Total benefits and expenses		5,590			5,795			(205	)	(4	)%
Income from continuing operations before income taxes		1,019			376			643		171	%
Provision for income taxes		348			355			(7	)	(2	)%
Income from continuing operations		671			21			650		NM	(1)
Loss from discontinued operations, net of taxes		(9	)		(25	)		16		64	%
Net income (loss)		662			(4	)		666		NM	(1)
Less: net income attributable to noncontrolling interests		198			151			47		31	%
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	464		$	(155	)	$	619		NM	(1)

⁽¹⁾  We define “NM” as not meaningful for increases or decreases greater than 200%.

Premiums

• Our U.S. Life Insurance segment increased $325 million. Our long-term care insurance business increased $34 million largely from $71 million of increased premiums in the current year from in-force rate actions approved and implemented, partially offset by policy terminations in the current year. Our life insurance business increased $294 million mainly attributable to the impact of a reinsurance treaty under which we initially ceded $326 million of certain term life insurance premiums as part of a life block transaction in the first quarter of 2016, partially offset by the continued runoff of our term life insurance products in the current year.

• Our Canada Mortgage Insurance segment increased $26 million principally from the seasoning of our larger, more recent in-force blocks of business.

• Our U.S. Mortgage Insurance segment increased $25 million mainly attributable to higher average flow insurance in-force, partially offset by lower rates on our mortgage insurance in-force in the current year. The prior year included the reversal of an accrual for premium refunds related to policy cancellations that did not recur.

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• Our Australia Mortgage Insurance segment decreased $18 million predominantly from the seasoning of our smaller prior year in-force blocks of business. The nine months ended September 30, 2017 included an increase of $7 million attributable to changes in foreign exchange rates.

• Corporate and Other activities decreased $5 million largely related to the sale of our European mortgage insurance business in May 2016.

Net investment income. For discussion of the change in net investment income, see the comparison for this line item under “—Investments and Derivative Instruments.”

Net investment gains (losses). For discussion of the change in net investment gains (losses), see the comparison for this line item under “—Investments and Derivative Instruments.”

Policy fees and other income

• Corporate and Other activities decreased $78 million. The prior year included a gain of $64 million from the early extinguishment of debt related to the redemption of a securitization entity and a gain of $11 million attributable to the sale of assets to Pacific Life Insurance Company (“Pac Life”) that did not recur.

• Our U.S. Life Insurance segment decreased $38 million mostly attributable to our life insurance business primarily as a result of suspending sales of these products on March 7, 2016 and a decline in our term universal and universal life insurance in-force blocks in the current year. The decrease was also related to an $8 million unfavorable model refinement in the current year.

Benefits and other changes in policy reserves

• Our U.S. Life Insurance segment increased $179 million. Our long-term care insurance business decreased $292 million principally from the completion of our annual review of our claim reserves conducted during the third quarter of 2016 which resulted in higher claim reserves of $435 million, net of reinsurance. The decrease was also attributable to $68 million of unfavorable adjustments which included refinements to the calculations of reserves in the prior year that did not recur and favorable claim terminations in the current year. These decreases were partially offset by aging and growth of the in-force block, higher severity on new claims, higher incremental reserves of $64 million recorded in connection with an accrual for profits followed by losses and a $38 million less favorable impact from reduced benefits in the current year related to in-force rate actions approved and implemented. Our life insurance business increased $429 million principally related to the impact of a reinsurance treaty under which we initially ceded $331 million of certain term life insurance reserves as part of a life block transaction in the first quarter of 2016. The increase was also attributable to higher universal and term universal life insurance reserves reflecting our previously updated assumptions from the fourth quarter of 2016 and unfavorable mortality in the current year. The current year also included a $30 million unfavorable model refinement. Our fixed annuities business increased $42 million largely attributable to $45 million of lower assumed reinsurance in connection with the recapture of certain life-contingent products by a third party in the prior year that did not recur, partially offset by favorable mortality in the current year.

• Our U.S. Mortgage Insurance segment decreased $45 million primarily due to favorable net cures and aging of existing delinquencies and from a $5 million higher favorable reserve adjustment in the current year.

• Our Canada Mortgage Insurance segment decreased $39 million largely from lower new delinquencies, net of cures, as well as from a lower average reserve per delinquency and from favorable loss reserve development related to incurred but not reported delinquencies as of December 31, 2016.

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• Our Runoff segment decreased $8 million primarily attributable to lower guaranteed minimum death benefits (“GMDB”) reserves in our variable annuity products due to favorable equity market performance in the current year.

• Our Australia Mortgage Insurance segment decreased $5 million largely attributable to $6 million of favorable non-reinsurance recoveries on paid claims in the second quarter of 2017 and a higher net benefit from cures and aging of existing delinquencies, partially offset by higher new delinquencies primarily in commodity-dependent regions in the current year. The nine months ended September 30, 2017 included an increase of $3 million attributable to changes in foreign exchange rates.

Interest credited

• Our U.S. Life Insurance segment decreased $38 million primarily related to our fixed annuities business predominantly from lower average account values and a decrease in crediting rates in the current year.

• Our Runoff segment increased $9 million largely related to higher cash values in our corporate-owned life insurance products in the current year.

Acquisition and operating expenses, net of deferrals

• Corporate and Other activities decreased $126 million mainly driven by expenses in the prior year that did not recur. The prior year expenses included $79 million of a litigation settlement and related legal expenses, $20 million of expenses related to the early redemption of debt, $18 million of bond consent fees and a $9 million loss related to the sale of our European mortgage insurance business. These decreases were partially offset by higher consulting fees in the current year.

• Our U.S. Life Insurance segment decreased $63 million. Our long-term care insurance business increased $24 million from guaranty fund assessments in connection with the Penn Treaty liquidation in the current year. Our life insurance business decreased $19 million primarily from lower operating expenses attributable to the suspension of sales on March 7, 2016. The decrease was also attributable to $7 million of restructuring charges and expenses of $5 million associated with the life block transaction in the prior year that did not recur. Our fixed annuities business decreased $68 million largely attributable to a $55 million payment in connection with the recapture of certain life-contingent products by a third party in the prior year that did not recur and lower operating expenses as a result of the suspension of sales on March 7, 2016. The prior year included an unfavorable correction of $12 million related to state guaranty funds.

• Our Australia Mortgage Insurance segment decreased $17 million primarily from a change in the classification of contract fees amortization expense, which we began recording to amortization of DAC and intangibles in the second quarter of 2017, as well as lower employee compensation and benefit expenses and a decrease in professional fees in the current year.

• Our Runoff segment decreased $7 million largely driven by lower state guaranty fund assessments in the current year.

Amortization of deferred acquisition costs and intangibles

• Our Australia Mortgage Insurance segment increased $20 million as a result of a change in the classification of contract fees amortization expense that was previously recorded to acquisition and operating expenses, net of deferrals, as discussed above, and higher contract fees being amortized in the current year.

• Our U.S. Life Insurance segment decreased $10 million. Our long-term care insurance business decreased $8 million principally from a smaller in-force block in the current year as a result of lower

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sales. Our life insurance business increased $17 million largely related to a $41 million unfavorable term conversion mortality assumption correction and higher amortization in our term universal life insurance product reflecting previously updated lapse assumptions, partially offset by a net $15 million favorable model refinement and an $11 million refinement related to reinsurance rates in the current year. Our fixed annuities business decreased $19 million predominantly related to the write-off of DAC in connection with loss recognition testing in our fixed immediate annuity products of $14 million in the prior year that did not recur.

• Our Runoff segment decreased $5 million primarily related to our variable annuity products principally from favorable equity market performance in the current year.

Interest expense

• Our U.S. Life Insurance segment decreased $26 million driven by our life insurance business principally as a result of the life block transaction in the first quarter of 2016 which included the redemption of certain non-recourse funding obligations and the write-off of $9 million of deferred borrowing costs associated with our non-recourse funding obligations as well as the restructuring of a captive reinsurance entity.

• Corporate and Other activities decreased $26 million largely driven by a favorable correction of $11 million related to our Tax Matters Agreement liability and a contractual change in our junior subordinated notes related to an interest rate change from fixed to floating rates.

Provision for income taxes. The effective tax rate decreased to 34.1% for the nine months ended September 30, 2017 from 94.5% for the nine months ended September 30, 2016. The effective tax rate for the nine months ended September 30, 2017 was impacted by higher tax benefits from lower taxed foreign income. The effective tax rate for the nine months ended September 30, 2016 was impacted by a valuation allowance of $265 million recorded on deferred tax assets related to foreign tax credits that we no longer expect to realize. The effective tax rate for the nine months ended September 30, 2016 was also impacted by the reversal of a deferred tax valuation allowance related to our mortgage insurance business in Europe due to taxable gains supporting the recognition of these deferred tax assets in the prior year.

Use of non-GAAP measures

Reconciliation of net income (loss) to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders

We use non-GAAP financial measures entitled “adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders” and “adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share.” Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share is derived from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders. We define adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding the after-tax effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. We exclude net investment gains (losses) and infrequent or unusual non-operating items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A component of our net investment gains (losses) is the result of impairments, the size and

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timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders because, in our opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders if, in our opinion, they are not indicative of overall operating trends.

While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, including adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth Financial, Inc.’s common stockholders or net income (loss) available to Genworth Financial, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders assume a 35% tax rate (unless otherwise indicated) and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves.

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The following table includes a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for the periods indicated:

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	107		$	(380	)	$	464		$	(155	)
Add: net income attributable to noncontrolling interests		68			48			198			151
Net income (loss)		175			(332	)		662			(4	)
Income (loss) from discontinued operations, net of taxes		(9	)		15			(9	)		(25	)
Income (loss) from continuing operations		184			(347	)		671			21
Less: income from continuing operations attributable to noncontrolling interests		68			48			198			151
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders		116			(395	)		473			(130	)
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net (1)		(62	)		(18	)		(161	)		(38	)
(Gains) losses on sale of businesses		—			—			—			(3	)
(Gains) losses on early extinguishment of debt, net		—			—			—			(48	)
Losses from life block transactions		—			—			—			9
Expenses related to restructuring		1			2			2			22
Fees associated with bond consent solicitation		—			—			—			18
Taxes on adjustments		21			6			56			(9	)
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders	$	76		$	(405	)	$	370		$	(179	)

⁽¹⁾ For the three months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for net investment (gains) losses attributable to noncontrolling interests of $23 million and $2 million, respectively. For the nine months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(15) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $59 million and $8 million, respectively.

We recorded a pre-tax expense of $1 million in both the third and first quarters of 2017 related to restructuring costs as the company continues to evaluate and appropriately size its organizational needs and expenses.

In the third quarter of 2016, we recorded a pre-tax expense of $2 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses.

In the second quarter of 2016, we completed the sale of our mortgage insurance business in Europe and recorded an additional pre-tax loss of $2 million; we completed the sale of our term life insurance new business platform and recorded a pre-tax gain of $12 million; we settled restricted borrowings related to a securitization entity and recorded a $64 million pre-tax gain related to the early extinguishment of debt; and we recorded a pre-tax expense of $5 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses.

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In the first quarter of 2016, we recorded a pre-tax loss of $7 million and a tax benefit of $27 million related to the planned sale of our mortgage insurance business in Europe; we paid a pre-tax make-whole expense of $20 million related to the early redemption of Genworth Holdings’ 2016 notes; we also repurchased $28 million principal amount of Genworth Holdings’ notes with various maturity dates for a pre-tax gain of $4 million; we completed a life block transaction resulting in a pre-tax loss of $9 million in connection with the early extinguishment of non-recourse funding obligations; and we recorded a pre-tax expense of $15 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses.

There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented other than the following item. We incurred fees during the first quarter of 2016 related to Genworth Holdings’ bond consent solicitation of $18 million for broker, advisor and investment banking fees.

Earnings (loss) per share

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

	Three months ended September 30,					Nine months ended September 30,
(Amounts in millions, except per share amounts)	2017		2016			2017		2016
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.23	$	(0.79	)	$	0.95	$	(0.26	)
Diluted	$	0.23	$	(0.79	)	$	0.94	$	(0.26	)
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.21	$	(0.76	)	$	0.93	$	(0.31	)
Diluted	$	0.21	$	(0.76	)	$	0.93	$	(0.31	)
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.15	$	(0.81	)	$	0.74	$	(0.36	)
Diluted	$	0.15	$	(0.81	)	$	0.74	$	(0.36	)
Weighted-average common shares outstanding:
Basic		499.1		498.3			498.9		498.3
Diluted (1)		501.6		498.3			501.2		498.3

⁽¹⁾ Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively.

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Diluted weighted-average common shares outstanding reflect the effects of potentially dilutive securities including stock options, restricted stock units and other equity-based compensation.

Results of Operations and Selected Financial and Operating Performance Measures by Segment

Our chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders. See note 10 in our unaudited condensed consolidated financial statements under “Item 1—Financial Statements” for a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders of our segments and Corporate and Other activities.

We allocate our consolidated provision for income taxes to our operating segments. Our allocation methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year. The effective tax rates disclosed herein are calculated using whole dollars. As a result, the percentages shown may differ from an effective tax rate calculated using rounded numbers.

Management’s discussion and analysis by segment contains selected operating performance measures including “sales” and “insurance in-force” or “risk in-force” which are commonly used in the insurance industry as measures of operating performance.

Management regularly monitors and reports sales metrics as a measure of volume of new and renewal business generated in a period. Sales refer to: (1) new insurance written for mortgage insurance; (2) annualized first-year premiums for long-term care and term life insurance products; (3) annualized first-year deposits plus 5% of excess deposits for universal and term universal life insurance products; (4) 10% of premium deposits for linked-benefits products; and (5) new and additional premiums/deposits for fixed annuities. Sales do not include renewal premiums on policies or contracts written during prior periods. We consider new insurance written, annualized first-year premiums/deposits, premium equivalents and new premiums/deposits to be a measure of our operating performance because they represent a measure of new sales of insurance policies or contracts during a specified period, rather than a measure of our revenues or profitability during that period.

Management regularly monitors and reports insurance in-force and risk in-force. Insurance in-force for our mortgage insurance businesses is a measure of the aggregate original loan balance for outstanding insurance policies as of the respective reporting date. Risk in-force for our U.S. mortgage insurance business is based on the coverage percentage applied to the estimated current outstanding loan balance. For risk in-force in our mortgage insurance businesses in Canada and Australia, we have computed an “effective” risk in-force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor of 35% that represents the highest expected average per-claim payment for any one underwriting year over the life of our mortgage insurance businesses in Canada and Australia. In Australia, we have certain risk share arrangements where we provide pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. We consider insurance in-force and risk in-force to be measures of our operating performance because they represent measures of the size of our business at a specific date which will generate revenues and profits in a future period, rather than measures of our revenues or profitability during that period.

Management also regularly monitors and reports a loss ratio for our businesses. For our mortgage insurance businesses, the loss ratio is the ratio of incurred losses and loss adjustment expenses to net earned premiums. For

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our long-term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums. We consider the loss ratio to be a measure of underwriting performance in these businesses and help to enhance the understanding of the operating performance of our businesses.

An assumed tax rate of 35% is utilized in certain adjustments to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders and in the explanation of specific variances of operating performance.

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

U.S. Mortgage Insurance segment

Trends and conditions

Results of our U.S. mortgage insurance business are affected primarily by the following factors: competitor actions; unemployment or underemployment levels; other economic and housing market trends, including interest rates, home prices, and mortgage origination volume mix and practices; the levels and aging of mortgage delinquencies; the effect of seasonal variations; the inventory of unsold homes; loan modification and other servicing efforts; and litigation, among other items. Our results are subject to the performance of the U.S. housing market and the extent of the adverse impact of seasonality that we experience historically in the second half of the year.

The level of private mortgage insurance market penetration and eventual market size is affected in part by actions taken by the GSEs and the U.S. government, including the Federal Housing Administration (“FHA”), the Federal Housing Finance Agency, and the U.S. Congress, which impact housing or housing finance policy. In the past, these actions have included announced changes, or potential changes, to underwriting standards, FHA pricing, GSE guaranty fees and loan limits as well as low-down-payment programs available through the FHA or GSEs.

Mortgage origination volume decreased during the third quarter of 2017 compared to the third quarter of 2016, primarily due to declines in refinance mortgage originations. The decline in refinance mortgage originations was driven by increases in interest rates. Our flow persistency was 83% during the third quarter of 2017 compared to 77% in the third quarter of 2016, in part due to the increase in interest rates. Our U.S. mortgage insurance estimated market share for the third quarter of 2017 decreased compared to the third quarter of 2016. This decrease in market share was primarily due to competitor pricing, the negative ratings differential relative to our competitors, concerns expressed about Genworth’s financial condition and the proposed transaction with China Oceanwide. The decline was partially offset by business gains from the addition of new customers as well as growth within our existing customer base driven, in part, by competitive pricing and differentiated service levels.

New insurance written decreased 12% during the third quarter of 2017 compared to the third quarter of 2016 due to a decline in our estimated market share. We continue to manage the quality of new business through our underwriting guidelines, which we modify from time to time when circumstances warrant. In the third quarter of 2017, we experienced an increase in the percentage of 97% loan-to-value new insurance written, compared to the third quarter of 2016, as the result of GSE changes in underwriting guidelines for purchase transactions. The percentage of single premium new insurance written increased in the third quarter of 2017 compared to the third quarter of 2016 and the second quarter of 2017, reflecting our selective participation in this market. There was also a higher refinance originations market compared to the second quarter of 2017. Future volumes of these products will vary depending in part on our evaluation of their risk return profile.

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Our loss ratio was 20% during the third quarter of 2017 compared to 21% during the third quarter of 2016. In the third quarter of 2016, we made a favorable adjustment of $10 million to our loss reserves. This adjustment favorably impacted the loss ratio during the third quarter of 2016 by six points. Additionally, the 2017 loss ratio declined due to improvements in the net benefit from cures and aging of existing delinquencies and an increase in earned premiums. New delinquencies decreased during the third quarter of 2017 compared to the third quarter of 2016 due to improvements in unemployment rates and housing values and the declining volume of new delinquencies from our 2005 through 2008 book years. Foreclosure starts decreased during the third quarter of 2017 as compared to the third quarter of 2016. Additionally, we have seen a reduction in loans that have been subject to a modification or workout. We expect our level of loan modifications to continue to decline going forward in line with the expected reduction in delinquent loans and the continuing aging of delinquencies. As of September 30, 2017, we have not experienced any material impact from the recent hurricanes affecting the South Central and Southeast regions of the United States. We will continue to monitor these affected areas and support the measures enacted by the GSEs restricting foreclosure actions and providing other forms of mortgage relief for those dealing with damage in the affected areas.

As of September 30, 2017, GMICO’s risk-to-capital ratio under the current regulatory framework as established under North Carolina law and enforced by the North Carolina Department of Insurance (“NCDOI”), GMICO’s domestic insurance regulator, was approximately 12.9:1, compared with a risk-to-capital ratio of approximately 13.1:1 as of June 30, 2017 and approximately 14.5:1 as of December 31, 2016. This risk-to-capital ratio remains below the NCDOI’s maximum risk-to-capital ratio of 25:1. GMICO’s ongoing risk-to-capital ratio will depend principally on the magnitude of future losses incurred by GMICO, the effectiveness of ongoing loss mitigation activities, new business volume and profitability, the amount of policy lapses, changes in the value of affiliated assets and the amount of additional capital that is generated within the business or capital support (if any) that we provide.

Effective December 31, 2015, each GSE adopted revised PMIERs, which set forth operational and financial requirements that mortgage insurers must meet in order to remain eligible. Each approved mortgage insurer is required to provide the GSEs with an annual certification and a quarterly report as to its compliance with PMIERs. As of September 30, 2017, we estimate our U.S. mortgage insurance business had available assets of approximately 122% of the required assets under PMIERs compared to approximately 122% as of June 30, 2017 and 115% as of December 31, 2016. As of September 30, 2017, June 30, 2017, and December 31, 2016, the PMIERs sufficiency ratios were in excess of $500 million, $500 million and $350 million, respectively, of available assets above the PMIERs requirements. The increase during the third quarter of 2017 as compared to December 31, 2016 was driven, in part, by positive operating cash flows and the reduction in delinquent loans. This increase was partially offset by growth in new insurance written. The reinsurance transactions covering our 2014 through 2017 book years provided an aggregate of approximately $510 million of PMIERs capital credit as of September 30, 2017. Previously, the GSEs informed us that they expect to review and revise the existing PMIERs financial requirements for all eligible insurers. The GSEs do not anticipate any new PMIERs financial requirements becoming effective before the fourth quarter of 2018. In addition, the GSEs have stated they plan to solicit feedback from eligible insurers on proposed PMIERs revisions and provide at least 180 days written notice prior to the effective date of the new requirements.

As of September 30, 2017, loans modified through the Home Affordable Refinance Program (“HARP”) accounted for approximately $13.2 billion of insurance in-force, with approximately $12.5 billion of those loans from our 2005 through 2008 book years. The volume of new HARP modifications continues to decrease as the number of loans that would benefit from a HARP modification decreases. Loans modified through HARP have extended amortization periods and reduced interest rates, which reduce borrower’s monthly payments. Over time, we expect these modified loans to result in extended premium streams and a lower incidence of default. On August 17, 2017, the U.S. government extended HARP through December 31, 2018. For financial reporting purposes, we report HARP modified loans as a modification of the coverage on existing insurance in-force rather than new insurance written.

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Segment results of operations

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

The following table sets forth the results of operations relating to our U.S. Mortgage Insurance segment for the periods indicated:

	Three months ended September 30,				Increase (decrease) and percentage change
(Amounts in millions)	2017		2016		2017 vs. 2016
Revenues:
Premiums	$	175	$	169	$	6		4	%
Net investment income		18		16		2		13	%
Net investment gains (losses)		—		—		—		—	%
Policy fees and other income		1		1		—		—	%
Total revenues		194		186		8		4	%
Benefits and expenses:
Benefits and other changes in policy reserves		35		36		(1	)	(3	)%
Acquisition and operating expenses, net of deferrals		43		45		(2	)	(4	)%
Amortization of deferred acquisition costs and intangibles		3		3		—		—	%
Total benefits and expenses		81		84		(3	)	(4	)%
Income from continuing operations before income taxes		113		102		11		11	%
Provision for income taxes		40		36		4		11	%
Income from continuing operations		73		66		7		11	%
Adjustments to income from continuing operations:
Net investment (gains) losses		—		—		—		—	%
Expenses related to restructuring		—		1		(1	)	(100	)%
Taxes on adjustments		—		—		—		—	%
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	73	$	67	$	6		9	%

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders increased mainly due to higher premiums resulting from higher mortgage insurance in-force in the current year.

Revenues

Premiums increased mainly attributable to higher average flow insurance in-force, partially offset by lower rates on our mortgage insurance in-force in the current year.

Net investment income increased primarily from higher average invested assets in the current year.

Benefits and expenses

Benefits and other changes in policy reserves decreased primarily due to lower new delinquencies and favorable net cures and aging of existing delinquencies, mostly offset by a favorable adjustment of $10 million to our loss reserves associated with lower expected claim rates on early stage delinquencies, partially offset by higher claim severity on late stage delinquencies in the prior year that did not recur.

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Acquisition and operating expenses, net of deferrals, decreased primarily from lower operating costs in the current year.

Provision for income taxes. The effective tax rate increased slightly to 35.9% for the three months ended September 30, 2017 from 35.8% for the three months ended September 30, 2016. The increase in the effective tax rate was primarily attributable to decreased tax benefits related to tax favored investments in relation to pre-tax income, partially offset by state taxes.

Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

The following table sets forth the results of operations relating to our U.S. Mortgage Insurance segment for the periods indicated:

	Nine months ended September 30,					Increase (decrease) and percentage change
(Amounts in millions)	2017		2016			2017 vs. 2016
Revenues:
Premiums	$	514	$	489		$	25		5	%
Net investment income		53		46			7		15	%
Net investment gains (losses)		—		(1	)		1		(100	)%
Policy fees and other income		3		3			—		—	%
Total revenues		570		537			33		6	%
Benefits and expenses:
Benefits and other changes in policy reserves		67		112			(45	)	(40	)%
Acquisition and operating expenses, net of deferrals		124		125			(1	)	(1	)%
Amortization of deferred acquisition costs and intangibles		10		8			2		25	%
Total benefits and expenses		201		245			(44	)	(18	)%
Income from continuing operations before income taxes		369		292			77		26	%
Provision for income taxes		132		104			28		27	%
Income from continuing operations		237		188			49		26	%
Adjustments to income from continuing operations:
Net investment (gains) losses		—		1			(1	)	(100	)%
Expenses related to restructuring		—		1			(1	)	(100	)%
Taxes on adjustments		—		(1	)		1		100	%
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	237	$	189		$	48		25	%

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders increased mainly attributable to higher premiums resulting from an increase in mortgage insurance in-force in the current year. The increase was also attributable to lower losses from favorable net cures and aging of existing delinquencies in the current year.

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Revenues

Premiums increased mainly attributable to higher average flow insurance in-force, partially offset by lower rates on our mortgage insurance in-force in the current year. The prior year included the reversal of an accrual for premium refunds related to policy cancellations that did not recur.

Net investment income increased primarily from higher average invested assets in the current year.

Benefits and expenses

Benefits and other changes in policy reserves decreased primarily due to favorable net cures and aging of existing delinquencies, lower new delinquencies and from a $5 million higher favorable reserve adjustment in the current year.

Provision for income taxes. The effective tax rate increased slightly to 35.9% for the nine months ended September 30, 2017 from 35.8% for the nine months ended September 30, 2016. The increase in the effective tax rate was primarily attributable to decreased tax benefits related to tax favored investments in relation to pre-tax income, partially offset by state taxes.

U.S. Mortgage Insurance selected operating performance measures

The following tables set forth selected operating performance measures regarding our U.S. Mortgage Insurance segment as of or for the dates indicated:

	As of September 30,				Increase (decrease) and percentage change
(Amounts in millions)	2017		2016		2017 vs. 2016
Primary insurance in-force (1)	$	148,000	$	133,700	$	14,300	11	%
Risk in-force		35,900		32,500		3,400	10	%

⁽¹⁾ Primary insurance in-force represents the aggregate original loan balance for outstanding insurance policies and is used to determine premiums. Original loan balances are presented for policies with level renewal premiums. Amortized loan balances are presented for policies with annual, amortizing renewal premiums.

	Three months ended September 30,				Increase (decrease) and percentage change					Nine months ended September 30,				Increase (decrease) and percentage change
(Amounts in millions)	2017		2016		2017 vs. 2016					2017		2016		2017 vs. 2016
New insurance written	$	11,300	$	12,800	$	(1,500	)	(12	)%	$	28,700	$	31,600	$	(2,900	)	(9	)%
Net premiums written		200		193		7		4	%		561		559		2		—	%

Primary insurance in-force and risk in-force

Primary insurance in-force increased largely from $14.8 billion in higher flow insurance in-force, which increased from $131.6 billion as of September 30, 2016 to $146.4 billion as of September 30, 2017 as a result of new insurance written, partially offset by lapses during the current year. The increase in flow insurance in-force was partially offset by a decline of $0.5 billion in bulk insurance in-force, which decreased from $2.1 billion as of September 30, 2016 to $1.6 billion as of September 30, 2017 from cancellations and lapses. In addition, risk in-force increased primarily as a result of higher flow insurance in-force. Flow persistency was 83% and 78% for the nine months ended September 30, 2017 and 2016, respectively.

New insurance written

For the three and nine months ended September 30, 2017, new insurance written decreased due to a decline in our estimated market share.

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Net premiums written

Net premiums written for the three months ended September 30, 2017 increased primarily from higher average flow insurance in-force in the current year.

Loss and expense ratios

The following table sets forth the loss and expense ratios for our U.S. Mortgage Insurance segment for the dates indicated:

	Three months ended September 30,						Increase (decrease)			Nine months ended September 30,						Increase (decrease)
	2017			2016			2017 vs. 2016			2017			2016			2017 vs. 2016
Loss ratio		20	%		21	%		(1	)%		13	%		23	%		(10	)%
Expense ratio (net earned premiums)		26	%		28	%		(2	)%		26	%		27	%		(1	)%
Expense ratio (net premiums written)		23	%		24	%		(1	)%		24	%		24	%		—	%

The loss ratio is the ratio of incurred losses and loss adjustment expenses to net earned premiums. The expense ratio (net earned premiums) is the ratio of general expenses to net earned premiums. The expense ratio (net premiums written) is the ratio of general expenses to net premiums written. In our business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

The loss ratio for the three and nine months ended September 30, 2017 decreased from improvements in net benefit from cures and aging of existing delinquencies and lower new delinquencies in the current year. The decrease in the loss ratio was also driven by higher net earned premiums attributable to higher average flow insurance in-force in the current year. The decrease in the loss ratio for the three months ended September 30, 2017 was mostly offset by a prior year favorable adjustment of $10 million to our loss reserves associated with lower expected claim rates on early stage delinquencies, partially offset by higher claim severity on late stage delinquencies that did not recur. The decrease in the loss ratio for the nine months ended September 30, 2017 was also attributable to a $5 million higher favorable reserve adjustment in the current year, partially offset by the reversal of an accrual for premium refunds related to policy cancellations in the prior year.

The expense ratio (net earned premiums) for the three and nine months ended September 30, 2017 decreased slightly driven by higher net earned premiums in the current year.

The expense ratio (net premiums written) for the three months ended September 30, 2017 decreased slightly from higher net premiums written and lower amortization and production costs in the in the current year.

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Delinquent loans

The following table sets forth the number of loans insured, the number of delinquent loans and the delinquency rate for our U.S. mortgage insurance portfolio as of the dates indicated:

	September 30, 2017			December 31, 2016			September 30, 2016
Primary insurance:
Insured loans in-force		730,174			699,841			686,789
Delinquent loans		20,508			25,709			25,803
Percentage of delinquent loans (delinquency rate)		2.81	%		3.67	%		3.76	%
Flow loan in-force		712,848			678,168			665,821
Flow delinquent loans		19,765			24,631			24,720
Percentage of flow delinquent loans (delinquency rate)		2.77	%		3.63	%		3.71	%
Bulk loans in-force		17,326			21,673			20,968
Bulk delinquent loans (1)		743			1,078			1,083
Percentage of bulk delinquent loans (delinquency rate)		4.29	%		4.97	%		5.17	%
A minus and sub-prime loans in-force		19,828			23,063			24,281
A minus and sub-prime delinquent loans		4,080			5,252			5,306
Percentage of A minus and sub-prime delinquent loans (delinquency rate)		20.58	%		22.77	%		21.85	%
Pool insurance:
Insured loans in-force		5,145			5,742			5,896
Delinquent loans		252			325			343
Percentage of delinquent loans (delinquency rate)		4.90	%		5.66	%		5.82	%

⁽¹⁾ Included loans where we were in a secondary loss position for which no reserve was established due to an existing deductible. Excluding these loans, bulk delinquent loans were 631 as of September 30, 2017, 756 as of December 31, 2016 and 778 as of September 30, 2016.

Delinquency and foreclosure levels that developed principally in our 2005 through 2008 book years have declined as the United States has continued to experience improvement in its residential real estate market. We have also seen a further decline in new delinquencies and lower foreclosure starts in the third quarter of 2017 compared to the third quarter of 2016.

The following tables set forth flow delinquencies, direct case reserves and risk in-force by aged missed payment status in our U.S. mortgage insurance portfolio as of the dates indicated:

	September 30, 2017
(Dollar amounts in millions)	Delinquencies		Direct case reserves(1)		Risk in-force		Reserves as % of risk in-force
Payments in default:
3 payments or less		8,268	$	40	$	350		11	%
4 - 11 payments		5,273		116		228		51	%
12 payments or more		6,224		256		306		84	%
Total		19,765	$	412	$	884		47	%

⁽¹⁾ Direct flow case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.

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	December 31, 2016
(Dollar amounts in millions)	Delinquencies		Direct case reserves (1)		Risk in-force		Reserves as % of risk in-force
Payments in default:
3 payments or less		9,355	$	49	$	382		13	%
4 - 11 payments		6,364		147		268		55	%
12 payments or more		8,912		383		434		88	%
Total		24,631	$	579	$	1,084		53	%

⁽¹⁾ Direct flow case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.

Primary insurance delinquency rates differ from region to region in the United States at any one time depending upon economic conditions and cyclical growth patterns. The tables below set forth our primary delinquency rates for the various regions of the United States and the 10 largest states by our risk in-force as of the dates indicated. Delinquency rates are shown by region based upon the location of the underlying property, rather than the location of the lender.

	Percent of primary risk in-force as of September 30, 2017			Percent of total reserves as of September 30, 2017 (1)			Delinquency rate
							September 30, 2017			December 31, 2016			September 30, 2016
By Region:
Southeast (2)		18	%		21	%		3.28	%		4.28	%		4.44	%
South Central (3)		15			10			2.63	%		3.20	%		3.12	%
Pacific (4)		15			8			1.52	%		2.02	%		2.08	%
Northeast (5)		13			33			4.94	%		6.72	%		6.96	%
North Central (6)		12			9			2.30	%		3.00	%		2.97	%
Great Lakes (7)		11			6			2.11	%		2.70	%		2.78	%
New England (8)		6			6			2.83	%		3.62	%		3.70	%
Mid-Atlantic (9)		6			5			2.92	%		3.80	%		3.84	%
Plains (10)		4			2			2.27	%		2.94	%		3.09	%
Total		100	%		100	%		2.81	%		3.67	%		3.76	%

⁽¹⁾ Total reserves were $460 million as of September 30, 2017.

⁽²⁾ Alabama, Arkansas, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.

⁽³⁾ Arizona, Colorado, Louisiana, New Mexico, Oklahoma, Texas and Utah.

⁽⁴⁾ Alaska, California, Hawaii, Nevada, Oregon and Washington.

⁽⁵⁾ New Jersey, New York and Pennsylvania.

⁽⁶⁾ Illinois, Minnesota, Missouri and Wisconsin.

⁽⁷⁾ Indiana, Kentucky, Michigan and Ohio.

⁽⁸⁾ Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.

⁽⁹⁾ Delaware, Maryland, Virginia, Washington D.C. and West Virginia.

⁽¹⁰⁾ Idaho, Iowa, Kansas, Montana, Nebraska, North Dakota, South Dakota and Wyoming.

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	Percent of primary risk in-force as of September 30, 2017			Percent of total reserves as of September 30, 2017 (1)			Delinquency rate
							September 30, 2017			December 31, 2016			September 30, 2016
By State:
California		8	%		3	%		1.35	%		1.56	%		1.59	%
Texas		7	%		4	%		2.94	%		3.33	%		3.33	%
Florida		6	%		11	%		3.54	%		4.89	%		5.33	%
New York		6	%		17	%		5.09	%		6.88	%		7.12	%
Illinois		6	%		6	%		2.70	%		3.45	%		3.42	%
Washington		4	%		2	%		1.20	%		1.79	%		1.86	%
Pennsylvania		4	%		4	%		3.59	%		4.70	%		4.83	%
Michigan		4	%		1	%		1.47	%		1.79	%		1.91	%
Ohio		4	%		2	%		2.44	%		3.30	%		3.38	%
North Carolina		3	%		2	%		2.80	%		3.65	%		3.79	%

⁽¹⁾ Total reserves were $460 million as of September 30, 2017.

The following table sets forth the dispersion of our total reserves and primary insurance in-force and risk in-force by year of policy origination and average annual mortgage interest rate as of September 30, 2017:

(Amounts in millions)	Average rate			Percent of total reserves (1)			Primary insurance in-force		Percent of total			Primary risk in-force		Percent of total
Policy Year
2004 and prior		6.01	%		10.3	%	$	2,361		1.6	%	$	463		1.3	%
2005		5.60	%		10.0			2,206		1.5			531		1.5
2006		5.73	%		15.6			4,018		2.7			942		2.6
2007		5.66	%		33.4			10,423		7.0			2,431		6.8
2008		5.20	%		15.9			8,676		5.9			2,017		5.6
2009		4.93	%		0.6			851		0.6			183		0.5
2010		4.68	%		0.5			1,178		0.8			270		0.8
2011		4.54	%		0.7			1,712		1.2			403		1.1
2012		3.84	%		0.8			4,544		3.1			1,111		3.1
2013		4.05	%		1.7			8,250		5.6			2,041		5.7
2014		4.43	%		3.5			12,556		8.5			3,067		8.6
2015		4.12	%		4.0			23,726		16.0			5,807		16.2
2016		3.86	%		2.7			39,291		26.5			9,545		26.6
2017		4.26	%		0.3			28,197		19.0			7,008		19.6
Total portfolio		4.46	%		100.0	%	$	147,989		100.0	%	$	35,819		100.0	%

⁽¹⁾ Total reserves were $460 million as of September 30, 2017.

Canada Mortgage Insurance segment

Trends and conditions

Results of our mortgage insurance business in Canada are affected primarily by changes in the regulatory environment, employment levels, consumer borrowing behavior, lender mortgage-related strategies, including lender servicing practices, and other economic and housing market influences, including interest rate trends, home price appreciation or depreciation, mortgage origination volume, levels and aging of mortgage delinquencies and movements in foreign currency exchange rates. During the third quarter of 2017, the Canadian dollar strengthened against the U.S. dollar as compared to both the third quarter of 2016 and the second quarter of 2017, which positively impacted the results of our mortgage insurance business in Canada as reported in U.S. dollars. Any future movement in foreign exchange rates could impact future results.

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The Canadian gross domestic product is expected to have experienced moderate growth in the third quarter of 2017, although slightly lower than in the second quarter of 2017, reflecting normalization in oil production and strong residential investment. The overnight interest rate in Canada was 1.0% at September 30, 2017 as compared to 0.50% at the end of the second quarter of 2017. Canada’s unemployment rate decreased to 6.2% at the end of the third quarter of 2017 compared to 6.5% at the end of the second quarter of 2017 due in part to a decrease in workforce participation.

National home prices increased in the third quarter of 2017 by approximately 11% compared to the third quarter of 2016 largely driven by strong housing markets in Ontario and British Columbia. The increase was approximately 2% compared to the second quarter of 2017, mostly due to continued strength in the British Columbia market, while Ontario prices remained relatively flat. Home sales in Canada decreased in the third quarter of 2017 by approximately 9% compared to the third quarter of 2016 and 6% compared to the second quarter of 2017. This was largely due to a slowdown in sales in Ontario, particularly in the Greater Toronto Area (“GTA”) following the release of the Ontario Provincial Government’s Fair Housing Plan in April 2017. The plan was designed to temper the real estate market and contained numerous measures, including a non-resident speculation tax that targets affordability in the purchase and rental housing markets in the GTA and surrounding areas.

Our mortgage insurance business in Canada experienced lower losses in the third quarter of 2017 compared to the third quarter of 2016 primarily due to lower new delinquencies, net of cures, resulting from strong or improving regional economic conditions and from a lower average reserve per delinquency in the current year. Our loss ratio in Canada was 14% for the third quarter of 2017 and 11% for the nine months ended September 30, 2017. Given the loss ratio performance thus far in 2017 and the economic forecast for the balance of the year, we expect our full year 2017 loss ratio to be lower than our full year 2016 loss ratio of 22%.

On October 3, 2016, the Minister of Finance announced changes intended to reinforce the Canadian housing finance system. These changes primarily included more restrictive qualification guidelines on homebuyers seeking mortgage insurance and new requirements on insured mortgage loans using bulk or other discretionary low loan-to-value mortgage insurance that previously only applied to high loan-to-value insured mortgages. These changes in regulatory requirements have resulted in a smaller flow mortgage insurance market and lower demand for bulk insurance.

In the third quarter of 2017, flow new insurance written volumes decreased in our mortgage insurance business in Canada compared to the third quarter of 2016 primarily due to a smaller flow mortgage insurance market size as a result of the aforementioned regulatory changes in the fourth quarter of 2016. However, earned premiums were higher in the third quarter of 2017 compared to the third quarter of 2016 from seasoning of our larger, more recent blocks of business and price increases in recent years.

Bulk new insurance written levels were lower in the third quarter of 2017 compared to the third quarter of 2016 primarily due to lower demand as a result of regulatory changes that took effect in 2016 and a substantial increase in bulk insurance premium rates on mortgage applications received after December 31, 2016 in response to higher regulatory capital requirements. New insurance written from bulk mortgage insurance varies from period to period based on a number of factors, including the amount of bulk mortgages lenders seek to insure, the competitiveness of our pricing and our risk appetite for such mortgage insurance. Effective July 1, 2016, bulk mortgage insurance is only available on mortgages used in the Canada Mortgage and Housing Corporation securitization programs and is prohibited on mortgages used in private securitizations after a phase-in period. In addition, effective November 30, 2016, additional regulatory changes were implemented that prohibit insuring bulk refinances and most investor mortgages. While there was a one-time increase in bulk insurance volumes in the first quarter of 2017 primarily due to the closing of several large bulk insurance transactions on applications received in the fourth quarter of 2016, we anticipate a decrease for the full year 2017 as a result of the aforementioned changes.

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We are subject to regulation under the Protection of Residential Mortgage or Hypothecary Insurance Act (Canada) (“PRMHIA”). Under PRMHIA and the Insurance Companies Act (Canada), our mortgage insurance business in Canada is required to meet a minimum capital test (“MCT”) to support its outstanding mortgage insurance in-force. The MCT ratio is calculated based on a methodology prescribed by the Office of the Superintendent of Financial Institutions (“OSFI”). On January 1, 2017, the capital advisory titled “Capital Requirements for Federally Regulated Mortgage Insurers” became effective. The advisory provides a new standard framework for determining the capital requirements for residential mortgage insurance companies. Under this new regulatory capital framework, the holding target of 220% was recalibrated to the updated OSFI Supervisory MCT Target and PRMHIA requirement of 150%. As of September 30, 2017, our MCT ratio under the new framework was approximately 165%, which was above the supervisory target.

The new framework released by OSFI in December 2016 is more risk sensitive and incorporates additional risk attributes, including credit score, remaining amortization and outstanding loan balance. The advisory includes supplementary capital requirements on new business in areas where home prices are high relative to borrower incomes upon origination. As a result of these higher regulatory capital requirements, our mortgage insurance business in Canada implemented an increase in premium rates of approximately 20% on flow new business effective March 17, 2017. Similarly, the business also increased its premium rates for bulk insurance.

On October 17, 2017, OSFI released the final version of Guideline B-20 “Residential Mortgage Underwriting Practices and Procedures,” which applies to all federally-regulated financial institutions that are engaged in residential mortgage underwriting and/or the acquisition of residential mortgage loan assets in Canada. The guideline takes effect January 1, 2018, and will require enhanced underwriting practices for all uninsured mortgages, including the application of a qualifying stress test. The B-20 Guideline does not directly impact the regulatory requirements for our mortgage insurance business in Canada, as it is governed by OSFI’s Guideline B-21 “Residential Mortgage Insurance Underwriting Practices and Procedures.” We believe the Guideline will not have a material impact on the high loan-to-value market in Canada. However, it is still too early to determine the potential impact this Guideline will have on the Canadian mortgage and housing market.

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Segment results of operations

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

The following table sets forth the results of operations relating to our Canada Mortgage Insurance segment for the periods indicated:

	Three months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	131		$	124		$	7		6	%
Net investment income		33			33			—		—	%
Net investment gains (losses)		55			—			55		NM	(1)
Policy fees and other income		1			(1	)		2		200	%
Total revenues		220			156			64		41	%
Benefits and expenses:
Benefits and other changes in policy reserves		18			30			(12	)	(40	)%
Acquisition and operating expenses, net of deferrals		20			21			(1	)	(5	)%
Amortization of deferred acquisition costs and intangibles		11			10			1		10	%
Interest expense		4			5			(1	)	(20	)%
Total benefits and expenses		53			66			(13	)	(20	)%
Income from continuing operations before income taxes		167			90			77		86	%
Provision for income taxes		55			24			31		129	%
Income from continuing operations		112			66			46		70	%
Less: income from continuing operations attributable to noncontrolling interests		54			30			24		80	%
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders		58			36			22		61	%
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net (2)		(32	)		—			(32	)	NM	(1)
Expenses related to restructuring		1			—			1		NM	(1)
Taxes on adjustments		10			—			10		NM	(1)
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	37		$	36		$	1		3	%

⁽¹⁾ We define “NM” as not meaningful for increases or decreases greater than 200%.

⁽²⁾ For the three months ended September 30, 2017, net investment (gains) losses were adjusted for the portion of net investment gains (losses) attributable to noncontrolling interests of $23 million.

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders increased mainly driven by lower losses and higher premiums, mostly offset by lower tax benefits in the current year.

Revenues

Premiums increased principally from the seasoning of our larger, more recent in-force blocks of business.

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Net investment gains in the current year were primarily driven by derivative gains on interest rate swaps, foreign currency forward contracts and cross currency interest rate swaps.

Benefits and expenses

Benefits and other changes in policy reserves decreased largely from lower new delinquencies, net of cures, and from a lower average reserve per delinquency in the current year.

Provision for income taxes. The effective tax rate increased to 32.9% for the three months ended September 30, 2017 from 26.7% for the three months ended September 30, 2016. The increase in the effective tax rate was primarily attributable to decreased tax benefits from lower taxed foreign income in the current year.

Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

The following table sets forth the results of operations relating to our Canada Mortgage Insurance segment for the periods indicated:

	Nine months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	383		$	357		$	26		7	%
Net investment income		96			94			2		2	%
Net investment gains (losses)		113			12			101		NM	(1)
Policy fees and other income		1			—			1		NM	(1)
Total revenues		593			463			130		28	%
Benefits and expenses:
Benefits and other changes in policy reserves		42			81			(39	)	(48	)%
Acquisition and operating expenses, net of deferrals		57			58			(1	)	(2	)%
Amortization of deferred acquisition costs and intangibles		32			29			3		10	%
Interest expense		13			13			—		—	%
Total benefits and expenses		144			181			(37	)	(20	)%
Income from continuing operations before income taxes		449			282			167		59	%
Provision for income taxes		147			76			71		93	%
Income from continuing operations		302			206			96		47	%
Less: income from continuing operations attributable to noncontrolling interests		146			94			52		55	%
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders		156			112			44		39	%
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net (2)		(65	)		(7	)		(58	)	NM	(1)
Expenses related to restructuring		1			—			1		NM	(1)
Taxes on adjustments		22			2			20		NM	(1)
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	114		$	107		$	7		7	%

⁽¹⁾ We define “NM” as not meaningful for increases or decreases greater than 200%.

⁽²⁾ For the nine months ended September 30, 2017 and 2016, net investment gains (losses) were adjusted for the portion of net investment gains (losses) attributable to noncontrolling interests of $48 million and $5 million, respectively.

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Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders increased mainly driven by lower losses and higher premiums, partially offset by lower tax benefits in the current year.

Revenues

Premiums increased primarily from the seasoning of our larger, more recent in-force blocks of business.

Net investment gains in the current year were primarily driven by derivative gains on interest rate swaps, foreign currency forward contracts and cross currency interest rate swaps, as well as foreign exchange gains on the sale of non-functional currency investment securities.

Benefits and expenses

Benefits and other changes in policy reserves decreased largely from lower new delinquencies, net of cures, as well as from a lower average reserve per delinquency and from favorable loss reserve development related to incurred but not reported delinquencies as of December 31, 2016.

Provision for income taxes. The effective tax rate increased to 32.7% for the nine months ended September 30, 2017 from 27.1% for the nine months ended September 30, 2016. The increase in the effective tax rate was primarily attributable to decreased tax benefits from lower taxed foreign income in the current year.

Canada Mortgage Insurance selected operating performance measures

The following tables set forth selected operating performance measures regarding our Canada Mortgage Insurance segment as of or for the dates indicated:

	As of September 30,				Increase (decrease) and percentage change
(Amounts in millions)	2017		2016		2017 vs. 2016
Primary insurance in-force	$	390,700	$	347,300	$	43,400	12	%
Risk in-force		136,700		121,500		15,200	13	%

	Three months ended September 30,				Increase (decrease) and percentage change					Nine months ended September 30,				Increase (decrease) and percentage change
(Amounts in millions)	2017		2016		2017 vs. 2016					2017		2016		2017 vs. 2016
New insurance written	$	5,000	$	10,400	$	(5,400	)	(52	)%	$	19,800	$	40,200	$	(20,400	)	(51	)%
Net premiums written		156		172		(16	)	(9	)%		378		447		(69	)	(15	)%

Primary insurance in-force and risk in-force

Our mortgage insurance business in Canada currently provides 100% coverage on the majority of the loans we insure in that market. For the purpose of representing our risk in-force, we have computed an “effective” risk in-force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents our highest expected average per-claim payment for any one underwriting year over the life of our business in Canada. For the three and nine months ended September 30, 2017 and 2016, this factor was 35%.

Primary insurance in-force and risk in-force increased primarily as a result of flow new insurance written and bulk mortgage insurance activity. Insurance in-force and risk in-force included increases of $19.2 billion and $6.7 billion, respectively, attributable to changes in foreign exchange rates.

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New insurance written

New insurance written decreased for the three and nine months ended September 30, 2017 primarily as a result of lower bulk mortgage insurance activity and flow new insurance written. For the three and nine months ended September 30, 2017, bulk mortgage insurance activity decreased by $4.5 billion and $18.6 billion, respectively, driven by increased demand in the prior year preceding regulatory changes that became effective on July 1, 2016 and from lower demand in the current year due to a higher average premium rate as a result of higher regulatory capital requirements and additional regulatory changes that became effective on November 30, 2016. Flow new insurance written decreased $900 million and $1.8 billion for the three and nine months ended September 30, 2017, respectively, primarily due to a smaller market size resulting from regulatory changes effective October 17, 2016. New insurance written for the three and nine months ended September 30, 2017 included increases of $100 million and $400 million, respectively, attributable to changes in foreign exchange rates.

Net premiums written

Our mortgage insurance policies in Canada provide for single premiums at the time that loan proceeds are advanced. We initially record the single premiums to unearned premium reserves and recognize the premiums earned over time in accordance with the expected pattern of risk emergence. As of September 30, 2017, our unearned premium reserves were $1,713 million, compared to $1,628 million as of September 30, 2016. The change in unearned premium reserves included an increase of $84 million attributable to changes in foreign exchange rates.

Net premiums written decreased for the three and nine months ended September 30, 2017 primarily from lower bulk mortgage insurance activity and lower flow volume due to regulatory changes, partially offset by premium rate increases.

Loss and expense ratios

The following table sets forth the loss and expense ratios for our Canada Mortgage Insurance segment for the periods indicated:

	Three months ended September 30,						Increase (decrease)			Nine months ended September 30,						Increase (decrease)
	2017			2016			2017 vs. 2016			2017			2016			2017 vs. 2016
Loss ratio		14	%		24	%		(10	)%		11	%		23	%		(12	)%
Expense ratio (net earned premiums)		23	%		24	%		(1	)%		23	%		24	%		(1	)%
Expense ratio (net premiums written)		20	%		18	%		2	%		23	%		19	%		4	%

The loss ratio is the ratio of incurred losses and loss adjustment expenses to net earned premiums. The expense ratio (net earned premiums) is the ratio of general expenses to net earned premiums. The expense ratio (net premiums written) is the ratio of general expenses to net premiums written. In our mortgage insurance business in Canada, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

The loss ratio decreased for the three and nine months ended September 30, 2017 primarily from a decrease in the number of new flow delinquencies, net of cures, and from a lower average reserve per delinquency as a result of improvement in oil-producing regions, home price appreciation, particularly in Ontario, and overall improving regional macroeconomic conditions in the current year.

The expense ratio (net earned premiums) decreased for the three and nine months ended September 30, 2017 primarily attributable to higher premiums from the seasoning of our larger, more recent in-force blocks of business.

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The expense ratio (net premiums written) increased for the three and nine months ended September 30, 2017 primarily attributable to lower net premiums written in the current year.

Delinquent loans

The following table sets forth the number of loans insured, the number of delinquent loans and the delinquency rate for our Canada mortgage insurance portfolio as of the dates indicated:

	September 30, 2017			December 31, 2016			September 30, 2016
Primary insured loans in-force		2,098,771			2,029,400			2,006,484
Delinquent loans		1,759			2,070			2,027
Percentage of delinquent loans (delinquency rate)		0.08	%		0.10	%		0.10	%
Flow loans in-force		1,434,662			1,394,067			1,379,020
Flow delinquent loans		1,434			1,693			1,715
Percentage of flow delinquent loans (delinquency rate)		0.10	%		0.12	%		0.12	%
Bulk loans in-force		664,109			635,333			627,464
Bulk delinquent loans		325			377			312
Percentage of bulk delinquent loans (delinquency rate)		0.05	%		0.06	%		0.05	%

Flow mortgage loans in-force increased from new policies written and bulk mortgage loans in-force increased from new bulk activity. The number of delinquent loans of our flow mortgage insurance decreased primarily from regional housing market improvement, particularly in oil-producing regions in the current year.

Primary insurance delinquency rates differ by the various provinces and territories of Canada at any one time depending upon economic conditions and cyclical growth patterns. The table below sets forth our primary delinquency rates for the various provinces and territories of Canada by our risk in-force as of the dates indicated. Delinquency rates are shown by region based upon the location of the underlying property, rather than the location of the lender.

	Percent of primary risk in-force as of September 30, 2017			Delinquency rate
				September 30, 2017			December 31, 2016			September 30, 2016
By province and territory:
Ontario		47	%		0.03	%		0.04	%		0.04	%
Alberta		16			0.18	%		0.22	%		0.22	%
British Columbia		15			0.05	%		0.06	%		0.07	%
Quebec		13			0.12	%		0.15	%		0.15	%
Saskatchewan		3			0.25	%		0.28	%		0.27	%
Nova Scotia		2			0.16	%		0.18	%		0.20	%
Manitoba		2			0.09	%		0.07	%		0.08	%
New Brunswick		1			0.15	%		0.19	%		0.15	%
All other		1			0.16	%		0.17	%		0.14	%
Total		100	%		0.08	%		0.10	%		0.10	%

Delinquency rates decreased slightly reflecting improvement primarily in Alberta and Quebec due to improving macroeconomic conditions in those regions in the current year.

As a part of enhanced lender reporting, we receive updated outstanding loans in-force in Canada from almost all of our customers. Based on the data provided by lenders, the delinquency rate as of September 30, 2017 was 0.18%, reflecting a lower number of outstanding loans and related policies in-force compared to our reported policies in-force.

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Australia Mortgage Insurance segment

Trends and conditions

Results of our mortgage insurance business in Australia are affected primarily by changes in regulatory environments, employment levels, consumer borrowing behavior, lender mortgage-related strategies, including lender servicing practices, and other economic and housing market influences, including interest rate trends, home price appreciation or depreciation, mortgage origination volume, levels and aging of mortgage delinquencies and movements in foreign currency exchange rates. During the third quarter of 2017, the Australian dollar strengthened against the U.S. dollar as compared to both the third quarter of 2016 and the second quarter of 2017, which favorably impacted the results of our mortgage insurance business in Australia as reported in U.S. dollars. Any future movement in foreign exchange rates could impact future results.

The Australian gross domestic product is expected to have had moderate growth in the third quarter of 2017, supported by sustained low interest rates and an ongoing rise in resource exports. The cash rate remained flat at 1.50% in the third quarter of 2017. The September 2017 unemployment rate improved slightly to 5.5% from 5.6% at the end of the second quarter of 2017.

Home prices in Australia continued to appreciate in the third quarter of 2017, with September 30, 2017 home values approximately 9% higher than a year ago and approximately 1% higher than at the end of the second quarter of 2017. The Sydney and Melbourne housing markets continue to be the major driver with annual home price growth of approximately 11% and 12%, respectively, as of the end of the third quarter of 2017.

Our mortgage insurance business in Australia had lower losses in the third quarter of 2017 compared to the third quarter of 2016 due to lower new delinquencies net of cures, as well as improved aging of existing delinquencies, primarily in commodity-dependent regions. The loss ratio in Australia for the three months ended September 30, 2017 was 37%. We expect continued regional loss pressures and lower expected earned premiums to drive our loss ratio higher for the full year 2017 as compared to the full year 2016 loss ratio of 34%. In addition, during the fourth quarter of 2017, our mortgage insurance business in Australia will complete its annual review of its premium earnings pattern. The outcome of this review could impact our results of operations, including our loss ratio.

In the third quarter of 2017, our mortgage insurance business in Australia experienced a decrease in new insurance written volumes compared to the third quarter of 2016 and the second quarter of 2017 due to lower market penetration from a change in customer mix, as well as the Australian Prudential Regulation Authority’s (“APRA”) continued focus on lending standards, investment lending and serviceability.

Gross premiums written in the third quarter of 2017 were lower compared to the third quarter of 2016 primarily driven by a decrease in flow volumes, particularly from a reduction in high loan-to-value mortgage origination volume resulting from regulatory measures to slow the growth in investment lending and limit the flow of new interest-only lending.

In November 2016, we entered into a new contract with our largest customer, effective January 1, 2017, with a term of three years. During the first three quarters of 2017, this customer represented 39% of our new insurance written. The contract with another large customer was set to expire in November 2017 but was recently extended through November 2018 under similar terms. This customer represented 12% of our new insurance written during the first three quarters of 2017. The contract with our former second largest customer was terminated by the customer effective April 8, 2017.

Our mortgage insurance business in Australia evaluates its capital position in relation to the Prescribed Capital Amount (“PCA”) as determined by APRA, utilizing the Internal Capital Adequacy Assessment Process as the framework to ensure that our Australia group of companies as a whole, and each regulated entity, are independently capitalized to meet regulatory requirements. As of September 30, 2017, the estimated PCA ratio of

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our mortgage insurance business in Australia was approximately 184%, representing an increase from 181% as of June 30, 2017, largely resulting from lower production volumes, portfolio seasoning and cancellations, partially offset by dividends paid and share repurchase activity in the third quarter of 2017.

In March 2017, APRA announced changes to reinforce sound mortgage lending practices, focusing on slowing investor growth and limiting the flow of new interest-only lending. These changes could impact future new insurance written volumes in our Australian mortgage insurance business.

Segment results of operations

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

The following table sets forth the results of operations relating to our Australia Mortgage Insurance segment for the periods indicated:

	Three months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	78		$	88		$	(10	)	(11	)%
Net investment income		19			23			(4	)	(17	)%
Net investment gains (losses)		1			4			(3	)	(75	)%
Total revenues		98			115			(17	)	(15	)%
Benefits and expenses:
Benefits and other changes in policy reserves		29			37			(8	)	(22	)%
Acquisition and operating expenses, net of deferrals		18			23			(5	)	(22	)%
Amortization of deferred acquisition costs and intangibles		10			4			6		150	%
Interest expense		3			2			1		50	%
Total benefits and expenses		60			66			(6	)	(9	)%
Income from continuing operations before income taxes		38			49			(11	)	(22	)%
Provision for income taxes		12			16			(4	)	(25	)%
Income from continuing operations		26			33			(7	)	(21	)%
Less: income from continuing operations attributable to noncontrolling interests		14			18			(4	)	(22	)%
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders		12			15			(3	)	(20	)%
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net (1)		(1	)		(2	)		1		50	%
Taxes on adjustments		1			1			—		—	%
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	12		$	14		$	(2	)	(14	)%

⁽¹⁾ For the three months ended September 30, 2016, net investment gains (losses) were adjusted for the portion of net investment gains (losses) attributable to noncontrolling interests of $2 million.

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders decreased primarily driven by lower premiums and investment income, partially offset by lower losses in the current year.

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Revenues

Premiums decreased largely due to the seasoning of our smaller prior year in-force blocks of business and lower policy cancellations in the current year. The three months ended September 30, 2017 included an increase of $3 million attributable to changes in foreign exchange rates.

Net investment income decreased primarily from lower yields in the current year.

Net investment gains decreased predominantly from lower net gains from the sale of investment securities, partially offset by impairments in the current year.

Benefits and expenses

Benefits and other changes in policy reserves decreased largely attributable to lower new delinquencies, net of cures, and from improved aging of existing delinquencies primarily in commodity-dependent regions in the current year.

Acquisition and operating expenses, net of deferrals, decreased primarily from a change in the classification of contract fees amortization expense, which we began recording to amortization of DAC and intangibles as of the second quarter of 2017.

Amortization of DAC and intangibles increased principally as a result of a change in the classification of contract fees amortization expense that was previously recorded to acquisition and operating expenses, net of deferrals, as discussed above.

Provision for income taxes. The effective tax rate increased to 33.1% for the three months ended September 30, 2017 from 32.2% for the three months ended September 30, 2016. The increase in the effective tax rate was primarily attributable to decreased tax benefits from lower taxed foreign income in the current year.

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Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

The following table sets forth the results of operations relating to our Australia Mortgage Insurance segment for the periods indicated:

	Nine months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	237		$	255		$	(18	)	(7	)%
Net investment income		57			72			(15	)	(21	)%
Net investment gains (losses)		23			6			17		NM	(1)
Total revenues		317			333			(16	)	(5	)%
Benefits and expenses:
Benefits and other changes in policy reserves		84			89			(5	)	(6	)%
Acquisition and operating expenses, net of deferrals		50			67			(17	)	(25	)%
Amortization of deferred acquisition costs and intangibles		31			11			20		182	%
Interest expense		7			8			(1	)	(13	)%
Total benefits and expenses		172			175			(3	)	(2	)%
Income from continuing operations before income taxes		145			158			(13	)	(8	)%
Provision for income taxes		48			51			(3	)	(6	)%
Income from continuing operations		97			107			(10	)	(9	)%
Less: income from continuing operations attributable to noncontrolling interests		52			57			(5	)	(9	)%
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders		45			50			(5	)	(10	)%
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net (2)		(12	)		(3	)		(9	)	NM	(1)
Taxes on adjustments		4			1			3		NM	(1)
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	37		$	48		$	(11	)	(23	)%

⁽¹⁾ We define “NM” as not meaningful for increases or decreases greater than 200%.

⁽²⁾ For the nine months ended September 30, 2017 and 2016, net investment gains (losses) were adjusted for the portion of net investment gains (losses) attributable to noncontrolling interests of $11 million and $3 million, respectively.

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders decreased primarily driven by lower premiums and investment income, partially offset by lower losses in the current year.

Revenues

Premiums decreased predominantly from the seasoning of our smaller prior year in-force blocks of business. The nine months ended September 30, 2017 included an increase of $7 million attributable to changes in foreign exchange rates.

Net investment income decreased primarily from lower yields and lower average invested assets in the current year.

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Net investment gains increased predominantly from higher net gains from the sale of investment securities due to the rebalancing of our portfolio, partially offset by impairments and derivative losses in the current year.

Benefits and expenses

Benefits and other changes in policy reserves decreased largely attributable to $6 million of favorable non-reinsurance recoveries on paid claims in the second quarter of 2017 and a higher net benefit from cures and aging of existing delinquencies, partially offset by higher new delinquencies primarily in commodity-dependent regions in the current year. The nine months ended September 30, 2017 included an increase of $3 million attributable to changes in foreign exchange rates.

Acquisition and operating expenses, net of deferrals, decreased primarily from a change in the classification of contract fees amortization expense, which we began recording to amortization of DAC and intangibles in the second quarter of 2017, as well as lower employee compensation and benefit expenses and a decrease in professional fees in the current year.

Amortization of DAC and intangibles increased as a result of a change in the classification of contract fees amortization expense that was previously recorded to acquisition and operating expenses, net of deferrals, as discussed above, and higher contract fees being amortized in the current year.

Provision for income taxes. The effective tax rate increased to 33.5% for the nine months ended September 30, 2017 from 32.4% for the nine months ended September 30, 2016. The increase in the effective tax rate was primarily attributable to decreased tax benefits from lower taxed foreign income in the current year.

Australia Mortgage Insurance selected operating performance measures

The following tables set forth selected operating performance measures regarding our Australia Mortgage Insurance segment as of or for the dates indicated:

	As of September 30,				Increase (decrease) and percentage change
(Amounts in millions)	2017		2016		2017 vs. 2016
Primary insurance in-force	$	252,200	$	247,900	$	4,300	2	%
Risk in-force		87,700		86,300		1,400	2	%

	Three months ended September 30,				Increase (decrease) and percentage change					Nine months ended September 30,				Increase (decrease) and percentage change
(Amounts in millions)	2017		2016		2017 vs. 2016					2017		2016		2017 vs. 2016
New insurance written	$	4,300	$	4,600	$	(300	)	(7	)%	$	14,100	$	14,800	$	(700	)	(5	)%
Net premiums written		56		57		(1	)	(2	)%		168		169		(1	)	(1	)%

Primary insurance in-force and risk in-force

Our mortgage insurance business in Australia currently provides 100% coverage on the majority of the loans we insure in those markets. For the purpose of representing our risk in-force, we have computed an “effective” risk in-force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents our highest expected average per-claim payment for any one underwriting year over the life of our business in Australia. For the three and nine months ended September 30, 2017 and 2016, this factor was

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35%. We also have certain risk share arrangements where we provide pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. In addition, Australia currently provides excess-of-loss reinsurance coverage with one lender. The insurance in-force and risk in-force associated with this reinsurance agreement are excluded from the above metrics as they are insignificant in relation to the rest of the portfolio.

Primary insurance in-force and risk in-force increased primarily from increases of $5.8 billion and $2.0 billion, respectively, from changes in foreign exchange rates.

New insurance written

New insurance written decreased for the three and nine months ended September 30, 2017 mainly attributable to lower market penetration from a change in customer mix, partially offset by higher bulk mortgage insurance written. The three and nine months ended September 30, 2017 included increases of $200 million and $500 million, respectively, attributable to changes in foreign exchange rates.

Net premiums written

Most of our Australian mortgage insurance policies provide for single premiums at the time that loan proceeds are advanced. We initially record the single premiums to unearned premium reserves and recognize the premiums earned over time in accordance with the expected pattern of risk emergence. As of September 30, 2017, our unearned premium reserves were $852 million, compared to $922 million as of September 30, 2016. The change in unearned premium reserves included an increase of $19 million attributable to changes in foreign exchange rates.

Net premiums written decreased slightly for the three and nine months ended September 30, 2017 primarily from lower market penetration from a change in customer mix. The three and nine months ended September 30, 2017 included increases of $2 million and $5 million, respectively, attributable to changes in foreign exchange rates.

Loss and expense ratios

The following table sets forth the loss and expense ratios for our Australia Mortgage Insurance segment for the periods indicated:

	Three months ended September 30,						Increase (decrease)			Nine months ended September 30,						Increase (decrease)
	2017			2016			2017 vs. 2016			2017			2016			2017 vs. 2016
Loss ratio		37	%		42	%		(5	)%		35	%		35	%		—	%
Expense ratio (net earned premiums)		37	%		31	%		6	%		35	%		31	%		4	%
Expense ratio (net premiums written)		51	%		48	%		3	%		49	%		46	%		3	%

The loss ratio is the ratio of incurred losses and loss adjustment expenses to net earned premiums. The expense ratio (net earned premiums) is the ratio of general expenses to net earned premiums. The expense ratio (net premiums written) is the ratio of general expenses to net premiums written. In our mortgage insurance business in Australia, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

The loss ratio decreased for the three months ended September 30, 2017 largely attributable to lower new delinquencies, net of cures, and improved aging of existing delinquencies primarily in commodity-dependent regions in the current year. The loss ratio was flat for the nine months ended September 30, 2017 as higher new delinquencies predominantly in commodity-dependent regions and lower net earned premiums were offset by $6 million of favorable non-reinsurance recoveries on paid claims and higher net benefits from cures and aging of existing delinquencies in the current year.

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The expense ratio (net earned premiums) increased for the three months ended September 30, 2017 primarily from lower net earned premiums and for the nine months ended September 30, 2017 primarily from lower net earned premiums and from higher contract fees being amortized in the current year.

The expense ratio (net premiums written) increased for the three and nine months ended September 30, 2017 primarily due to higher contract fees being amortized and lower net premiums written in the current year.

Delinquent loans

The following table sets forth the number of loans insured, the number of delinquent loans and the delinquency rate for our Australia mortgage insurance portfolio as of the dates indicated:

	September 30, 2017			December 31, 2016			September 30, 2016
Primary insured loans in-force		1,422,501			1,464,139			1,470,302
Delinquent loans		7,146			6,731			6,844
Percentage of delinquent loans (delinquency rate)		0.50	%		0.46	%		0.47	%
Flow loans in-force		1,308,998			1,354,616			1,358,286
Flow delinquent loans		6,912			6,451			6,574
Percentage of flow delinquent loans (delinquency rate)		0.53	%		0.48	%		0.48	%
Bulk loans in-force		113,503			109,523			112,016
Bulk delinquent loans		234			280			270
Percentage of bulk delinquent loans (delinquency rate)		0.21	%		0.26	%		0.24	%

Flow loans in-force decreased primarily from policy cancellations. Flow delinquent loans increased from higher new delinquencies primarily as a result of economic pressures in commodity-dependent regions.

Primary insurance delinquency rates differ by the various states and territories of Australia at any one time depending upon economic conditions and cyclical growth patterns. The table below sets forth our primary delinquency rates for the states and territories of Australia by our risk in-force as of the dates indicated. Delinquency rates are shown by region based upon the location of the underlying property, rather than the location of the lender.

	Percent of primary risk in-force as of September 30, 2017			Delinquency rate
				September 30, 2017			December 31, 2016			September 30, 2016
By state and territory:
New South Wales		28	%		0.31	%		0.30	%		0.32	%
Queensland		23			0.72	%		0.66	%		0.67	%
Victoria		23			0.39	%		0.38	%		0.39	%
Western Australia		12			0.88	%		0.74	%		0.69	%
South Australia		6			0.65	%		0.61	%		0.62	%
Australian Capital Territory		3			0.19	%		0.17	%		0.20	%
Tasmania		2			0.38	%		0.35	%		0.37	%
New Zealand		2			0.06	%		0.07	%		0.10	%
Northern Territory		1			0.50	%		0.36	%		0.33	%
Total		100	%		0.50	%		0.46	%		0.47	%

Delinquency rates increased in the current year compared to December 31, 2016 and September 30, 2016 primarily from higher new delinquencies attributable to economic pressures, particularly in commodity-dependent regions.

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U.S. Life Insurance segment

Trends and conditions

Results of our U.S. life insurance businesses depend significantly upon the extent to which our actual future experience is consistent with assumptions and methodologies we have used in calculating our reserves. Many factors can affect the reserves in our U.S. life insurance businesses. Because these factors are not known in advance, change over time, are difficult to accurately predict and are inherently uncertain, we cannot determine with precision the ultimate amounts we will pay for actual claims or the timing of those payments. We will continue to monitor our experience and assumptions closely and make changes to our assumptions and methodologies, as appropriate, for our U.S. life insurance products. Even small changes in assumptions or small deviations of actual experience from assumptions can have, and in the past have had, material impacts on our DAC amortization, reserve levels, results of operations and financial condition.

We perform loss recognition testing to ensure that the current reserves along with the present value of future gross premiums are sufficient to cover the present value of future expected claims and expense, as well as recover the unamortized portion of DAC and, if any, PVFP. If the loss recognition test indicates a deficiency in the ability to pay all future claims and expenses, including the amortization of DAC and PVFP, a loss is recognized in earnings as an impairment of the DAC and/or PVFP balance and, if the loss is greater than the DAC and/or PVFP balance, by an increase in reserves. Our liability for policy and contract claims is reviewed quarterly and we conduct a review of our claim reserve assumptions for our long-term care insurance business annually typically during the third quarter of each year. Our liability for future policy benefits is reviewed at least annually as a part of our loss recognition testing typically performed in the third or fourth quarter of each year. As part of loss recognition testing, we also review the recoverability of DAC and PVFP at least annually. In addition, we perform cash flow testing separately for each of our U.S. life insurance companies on a statutory accounting basis annually. We performed our annual review of claim reserve assumptions for our long-term care insurance business in the third quarter of 2017. In the fourth quarter of 2017, we will perform assumption reviews for our universal and term universal life insurance products as well as for our other U.S. life insurance products, including our long-term care insurance products, and complete our loss recognition testing.

Our U.S. Life Insurance segment will continue to migrate to a new valuation and projection platform for certain lines of business, while we upgrade platforms for other lines of business. The migration and upgrades are part of our ongoing efforts to improve the infrastructure and capabilities of our information systems and our routine assessment and refinement of financial, actuarial, investment and risk management capabilities and processes enterprise wide. These efforts will also provide our U.S. Life Insurance segment with improved platforms to support emerging accounting guidance and ongoing changes in capital regulations. Concurrently, valuation processes and methodologies will be reviewed, and may result in additional refinements to our models and/or assumptions. Any material changes in balances, margins or income trends that may result from these activities will be disclosed accordingly. In addition, we intend to continue to enhance our modeling capabilities of our various businesses, including for our long-term care insurance projections where we migrated to a new modeling system for the majority of our long-term care insurance business in the fourth quarter of 2016. We anticipate migrating substantially all of our retained long-term care insurance business to this new modeling system by the end of 2017. The new modeling system will value and forecast associated liability cash flows and policyholder behavior at a more granular level than our current system.

One of our strategic objectives is to separate, then isolate, through a series of internal transactions, our long-term care insurance business from our other U.S. life insurance businesses. Our goal under the plan has been to align substantially all of our non-New York in-force life insurance and annuity business under GLAIC, our Virginia domiciled life insurance company, and substantially all of our non-New York long-term care insurance business under GLIC, our Delaware domiciled life insurance company. As part of this strategic objective, effective April 1, 2017, GLAIC assumed risk on a coinsurance basis for certain blocks of term life insurance, universal life insurance and single premium whole life insurance from GLIC. Effective July 1, 2017, GLIC recaptured certain single premium deferred annuity products previously ceded to GLAIC. In addition,

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effective July 1, 2017, GLAIC assumed risk on a modified coinsurance basis for certain blocks of fixed annuities, including those single premium deferred annuity products recaptured by GLIC, and certain corporate-owned life insurance policies from GLIC. As a result, there was an adverse impact on GLIC’s risk-based capital ratio of approximately 15 points in the third quarter of 2017. However, the internal transactions had no impact on our consolidated results of operations and financial condition prepared in accordance with U.S. GAAP as the financial impact of the intercompany reinsurance was eliminated in consolidation. These transactions complete our goal to align substantially all of our non-New York in-force life insurance and annuity business under GLAIC and substantially all of our non-New York long-term care insurance business under GLIC. All of these transactions were also required under the Merger Agreement with China Oceanwide. The reinsurance treaties effective July 1, 2017 include provisions that require us to unwind or void these treaties in the event the merger transaction with China Oceanwide is terminated.

In addition, a Genworth holding company will pursue the purchase of GLAIC from GLIC at fair market value, subject to applicable regulatory approvals. Together with the internal reinsurance transactions completed in April 2017 and July 2017, finalization of the GLAIC sale, if completed, would isolate our non-New York long-term care insurance business from our other non-New York U.S. life insurance businesses and achieve this strategic objective.

Results of our U.S. life insurance businesses are also impacted by interest rates. The continued low interest rate environment puts pressure on the profitability and returns of these businesses as higher yielding investments have matured and been replaced with lower-yielding investments. We seek to manage the impact of low interest rates through asset-liability management as well as interest rate hedging strategies for a portion of our long-term care insurance product cash flows. Additionally, certain products have implicit and explicit rate guarantees or optionality that are significantly impacted by changes in interest rates. For a further discussion of the impact of interest rates on our U.S. life insurance businesses, see “Item 7A—Quantitative and Qualitative Disclosures About Market Risk” in our 2016 Annual Report on Form 10-K.

Long-term care insurance

Results of our long-term care insurance business are influenced primarily by sales, morbidity, mortality, persistency, investment yields, expenses, ability to achieve rate actions, changes in regulations and reinsurance. Sales of our products are impacted by the relative competitiveness of our ratings, product features, pricing and commission levels and the impact of in-force rate actions on distribution and consumer demand. Changes in regulations or government programs, including long-term care insurance rate action legislation, could impact our long-term care insurance business either positively or negatively.

Our liability for policy and contract claims is reviewed quarterly and we conduct a detailed review of our claim reserve assumptions for our long-term care insurance business annually typically during the third quarter of each year. During the third quarter of 2017, we reviewed our assumptions and methodologies relating to our claim reserves of our long-term care insurance business but did not make any significant changes to the assumptions or methodologies, other than routine updates to investment returns and benefit utilization rates as we typically do each quarter. These updates in the third quarter of 2017 did not have a significant impact on claim reserve levels. During the third quarter of 2016, we completed our annual review of assumptions and methodologies related to our long-term care insurance claim reserves, which resulted in recording higher claim reserves of $460 million and reinsurance recoverables of $25 million. We updated several assumptions and methodologies primarily impacting claim termination rates, benefit utilization rates and incurred but not reported reserves.

In the fourth quarter of 2016, we performed our loss recognition and cash flow testing. We incorporated the assumption and methodology changes made in the third quarter of 2016 into these tests. These changes had a material negative impact on the margins of our long-term care insurance block, excluding the acquired block. The acquired block has a higher percentage of indemnity policies and was positively affected by the new claim assumptions. As a part of the process, we considered incremental benefits from expected future rate actions that helped mitigate the impact of these changes. As part of the annual testing, we also reviewed assumptions for

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incidence and interest rates, among other assumptions. We will continue to regularly review our methodologies and assumptions in light of emerging experience and may be required to make further adjustments to our long-term care insurance claim reserves in the future, which could also impact our loss recognition and cash flow testing results. As of December 31, 2016, our loss recognition testing margins for our long-term care insurance business were positive but were significantly reduced from the 2015 levels. In the fourth quarter of 2017, we will perform assumption reviews and complete our loss recognition testing for our long-term care insurance products. We have observed a higher incidence of claim on policies with lifetime, or unlimited, benefits and will consider this as we complete our 2017 loss recognition testing. Our assumptions are sensitive to slight variability in actual experience and small changes in assumptions could result in the margin of our long-term care insurance block, excluding the acquired block to decrease to at/or below zero in future years. To the extent, based on reviews, our margin is negative, we would be required to recognize a loss, by amortizing more DAC and/or establishing additional benefit reserves, the impact of which may be material. In the event a loss is recognized, we would increase reserves to offset such losses that would be recognized in later years. A significant decrease in our loss recognition testing margin, the need to amortize a significant amount of DAC and/or the need to significantly increase reserves could have a material adverse effect on our business, results of operations and financial condition.

As a result of our annual statutory cash flow testing in the fourth quarter of 2016, GLICNY, our insurance subsidiary domiciled in New York, did not require any additional statutory reserves. However, in the second quarter of 2017, the New York Department of Financial Services required GLICNY to record an additional $58 million of statutory long-term care insurance reserves related to cash flow testing. GLICNY now currently expects to record an aggregate of approximately $178 million of additional statutory reserves over the next 15 months.

In connection with the updated assumptions and methodologies that increased claim reserves on existing claims in our 2016 review, we now establish higher claim reserves on new claims, which will decrease earnings in future periods in which the higher reserves are recorded. Additionally, average claim reserves for new claims are higher as the mix of claims continues to evolve, with an increasing number of policies with higher daily benefit amounts, unlimited benefit pools and higher inflation factors going on claim. Also, we expect growth in new claims as our blocks of business continue to age. In addition, premiums will decline as policies terminate from mortality and lapses.

We experience volatility in our loss ratios caused by variances in policy terminations, claim terminations, claim severity and claim counts. Our approved premium rate actions may also cause fluctuations in our loss ratios during the period when reserves are adjusted to reflect policyholders taking reduced benefits or non-forfeiture options within their policy coverage. In addition, we periodically review our reserve assumptions and methodologies based upon developing experience, which may result in changes to claim reserves and loss recognition testing results, causing volatility in our operating results and loss ratios. Our loss ratio for the nine months ended September 30, 2017 was 74% compared to 94% for the nine months ended September 30, 2016. The loss ratio for the nine months ended September 30, 2016 reflected the updated assumptions and methodologies from our annual review of claim reserve assumptions completed in the third quarter of 2016.

Our long-term care insurance sales decreased 50% during the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016. Sales decreased primarily due to our lower ratings. We expect that our sales will continue to be adversely impacted by our current ratings. Future adverse ratings announcements or actions could negatively impact our sales levels further.

Despite our low sales levels in our long-term care insurance business given our current ratings, we continue to evaluate new products. For example, we previously launched an enhanced product to improve competitiveness, while meeting our targeted returns, by, among other things, reducing premium rates, benefit levels and adjusting other coverage options. In support of this product, we are investing in targeted distribution and marketing initiatives to increase long-term care insurance sales. In addition, we are evaluating market trends and sales and investing in the development of products and distribution strategies that we believe will help expand the long-term care insurance market over time and meet broader consumer needs.

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We also manage risk and capital allocated to our long-term care insurance business through utilization of external reinsurance in the form of coinsurance. We executed external reinsurance agreements to reinsure 20% of all sales of our individual long-term care insurance products that have been introduced since early 2013. External new business reinsurance levels vary and are dependent on a number of factors, including price, availability, risk tolerance and capital levels. Over time, there can be no assurance that affordable, or any, reinsurance will continue to be available. We also have external reinsurance on some older blocks of business which includes a treaty on a yearly renewable term basis on business that was written between 1998 and 2003. This yearly renewable term reinsurance provides coverage for claims on those policies for 15 years after the policy was written. After 15 years, reinsurance coverage ends for policies not on claim, while reinsurance coverage continues for policies on claim until the claim ends. Since 2013, we have seen, and may continue to see, an increase in our benefit costs as policies with reinsurance coverage exhaust their benefits or terminate and policies which are not covered by reinsurance go on claim.

As a result of ongoing challenges in our long-term care insurance business, we continue pursuing initiatives to improve the risk and profitability profile of our business including: premium rate increases and associated benefit reductions on our in-force policies; product refinements; changes to our current product offerings in certain states; new distribution strategies; refining underwriting requirements; managing expense levels; actively exploring additional reinsurance strategies; executing investment strategies targeting higher returns; enhancing our financial and actuarial analytical capabilities; and considering other actions to improve the performance of the overall business. These efforts include a plan for significant future in-force premium rate increases on issued policies. For an update on rate actions, refer to “—Significant Developments—U.S. Life Insurance.” We have suspended sales in Hawaii, Massachusetts, New Hampshire and Vermont, and will consider taking similar actions in the future, in other states where we are unable to obtain satisfactory rate increases on in-force policies and/or unable to obtain approval for new products. We will also consider litigation against states that decline actuarially justified rate increases. We are currently in litigation with one state that has refused to approve actuarially justified rate actions. The approval process for in-force premium rate increases and the amount and timing of the rate increases approved vary by state. In certain states, the decision to approve or disapprove a rate increase can take several years. Upon approval, insureds are provided with written notice of the increase and increases are generally applied on the insured’s next policy anniversary date. As a result, the benefits of any rate increase are not fully realized until the implementation cycle is complete and are, therefore, expected to be realized over time. We previously expected the remaining quarterly income benefits of our in-force rate actions, in aggregate, to be lower in 2017 than the levels we experienced in 2016 as the implementation of certain rate increase approvals were largely completed in the third quarter of 2016. However, during 2017, quarterly income benefits of our in-force rate actions have increased sequentially each quarter. We now expect the 2017 income benefits of the in-force rate actions, in aggregate, to be above those recognized in 2016.

The Pennsylvania Insurance Commissioner (the “Commissioner”) previously placed long-term care insurer Penn Treaty in rehabilitation, an intermediate action before insolvency, and subsequently petitioned a state court to convert the rehabilitation into a liquidation. On November 9, 2016, the state court held a hearing on the Commissioner’s petition to convert the rehabilitation into liquidation with no objections. As of December 31, 2016, the liquidation order had not been entered and as a result, we were unable to estimate when or to what extent Penn Treaty would ultimately be declared insolvent, or the amount of the insolvency and we did not establish an accrual for guaranty fund assessments associated with Penn Treaty as of December 31, 2016. However, on March 1, 2017, the Pennsylvania Commonwealth Court approved petitions to liquidate Penn Treaty due to financial difficulties that could not be resolved through rehabilitation. In the first quarter of 2017, we received guaranty fund assessments related to Penn Treaty and recorded an accrual of $21 million.

Life insurance

Results of our life insurance business are impacted primarily by mortality, persistency, investment yields, expenses, reinsurance and statutory reserve requirements, among other factors. As previously disclosed, we suspended sales of our traditional life insurance products on March 7, 2016.

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We review our life assumptions at least annually typically in the third or fourth quarter of each year. As part of our annual review of assumptions in the fourth quarter of 2016, we reviewed our assumptions, including interest rate assumptions, with the benefit of updated experience and comparisons to industry experience, where appropriate. As part of this review, we implemented an updated mortality table for our life insurance products. This updated table improved our mortality rates in younger ages but deteriorated mortality rates in older ages. Mortality levels may deviate each period from historical trends. As a result of the updated assumptions, we recorded $196 million of after-tax charges in our universal and term universal life insurance products in the fourth quarter of 2016 primarily reflecting the mortality experience deterioration in older age populations. We have also experienced a higher mortality trend in 2017 as policies have aged. We will continue to regularly review our mortality as well as all of our other assumptions in light of emerging experience and may be required to make further adjustments to our universal and term universal life insurance reserves in the future, which could also impact our loss recognition testing results. In the fourth quarter of 2017, we will perform assumption reviews and complete our loss recognition testing for our universal and term life insurance products. Any further materially adverse changes to our assumptions, including mortality, may have a materially negative impact on our results of operations, financial condition and business.

Between 1999 and 2009, we had a significant increase in term life insurance sales, as compared to 1998 and prior years. As our 15-year term life insurance policies written in 1999 and 2000 transition to their post-level guaranteed premium rate period, we have experienced lower persistency compared to our pricing and valuation assumptions. The blocks of business issued since 2000 vary in size as compared to the 1999 and 2000 blocks of business. Accordingly, in the future, as additional 10-, 15- and 20-year level premium period blocks enter their post-level guaranteed premium rate period, we may experience volatility in DAC amortization, premiums and mortality experience, which may reduce profitability or create losses in our term life insurance products, in amounts that could be material, if persistency is lower than our original assumptions as it has been on our 10- and 15-year business written in 1999 and 2000. In 2017, we have experienced higher lapses and accelerated DAC amortization associated with our large 15-year and 20-year term life insurance blocks entering their post-level guaranteed level premium rate periods. We anticipate this trend will continue, with accompanying higher DAC amortization and lower profitability as larger blocks reach the end of their level premium periods through 2020. As of September 30, 2017, our term life insurance products had a DAC balance of $1.4 billion. We have also taken actions to mitigate potentially unfavorable impacts through the use of reinsurance, particularly for certain term life insurance policies issued between 2001 and 2004.

Fixed annuities

Results of our fixed annuities business are affected primarily by investment performance, interest rate levels, the slope of the interest rate yield curve, net interest spreads, equity market conditions, mortality, persistency, expense and commission levels, and competitor actions. As previously disclosed, we suspended sales of our traditional fixed annuity products on March 7, 2016.

We monitor and change crediting rates on fixed annuities on a regular basis to maintain spreads and targeted returns. However, if interest rates remain at current levels or decrease further, we could see declines in spreads which impact the margins on our products, particularly our fixed immediate annuity products. Beginning in the second quarter of 2016, our loss recognition testing resulted in a premium deficiency on our fixed immediate annuity products driven by the low interest rate environment. Due to the premium deficiency that existed in 2016 and the current low interest rate environment, we continue to monitor our fixed immediate annuity products more frequently than annually and have recorded additional charges in each quarter of 2017. If interest rates remain at the current levels or increase at a slower pace than we assumed, we could incur additional charges in the future. The impacts of future adverse changes in our assumptions would result in the establishment of additional future policy benefit reserves and would be immediately reflected in net income (loss) if our margin for this block is again reduced below zero. Any favorable variation would result in additional margin but no immediate benefit to income (loss), and would result in higher income recognition over the remaining duration of the in-force block.

For fixed indexed annuities, equity market performance and volatility could also result in additional gains or losses, although associated hedging activities are expected to partially mitigate these impacts.

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Segment results of operations

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

The following table sets forth the results of operations relating to our U.S. Life Insurance segment for the periods indicated:

	Three months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	748		$	725		$	23		3	%
Net investment income		683			695			(12	)	(2	)%
Net investment gains (losses)		27			21			6		29	%
Policy fees and other income		154			175			(21	)	(12	)%
Total revenues		1,612			1,616			(4	)	—	%
Benefits and expenses:
Benefits and other changes in policy reserves		1,255			1,556			(301	)	(19	)%
Interest credited		128			140			(12	)	(9	)%
Acquisition and operating expenses, net of deferrals		149			149			—		—	%
Amortization of deferred acquisition costs and intangibles		50			69			(19	)	(28	)%
Interest expense		3			2			1		50	%
Total benefits and expenses		1,585			1,916			(331	)	(17	)%
Income (loss) from continuing operations before income taxes		27			(300	)		327		109	%
Provision (benefit) for income taxes		10			(106	)		116		109	%
Income (loss) from continuing operations		17			(194	)		211		109	%
Adjustments to income (loss) from continuing operations:
Net investment (gains) losses, net (1)		(28	)		(21	)		(7	)	(33	)%
Expenses related to restructuring		—			1			(1	)	(100	)%
Taxes on adjustments		10			7			3		43	%
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders	$	(1	)	$	(207	)	$	206		100	%

⁽¹⁾  For the three months ended September 30, 2017, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(1) million.

The following table sets forth adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for the businesses included in our U.S. Life Insurance segment for the periods indicated:

	Three months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:
Long-term care insurance	$	(5	)	$	(270	)	$	265		98	%
Life insurance		(9	)		48			(57	)	(119	)%
Fixed annuities		13			15			(2	)	(13	)%
Total adjusted operating loss available to Genworth Financial, Inc.’s common stockholders	$	(1	)	$	(207	)	$	206		100	%

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Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders

• The adjusted operating loss available to Genworth Financial, Inc.’s common stockholders for our long-term care insurance decreased $265 million predominantly attributable to higher claim reserves of $283 million as a result of the completion of our annual review of our claim reserves conducted during the third quarter of 2016, partially offset by higher severity on new claims in the current year. The current year also included $8 million of higher premiums and reduced benefits from in-force rate actions approved and implemented.

• Our life insurance business had an adjusted operating loss available to Genworth Financial, Inc.’s common stockholders of $9 million in the current year compared to adjusted operating income available to Genworth Financial, Inc.’s common stockholders of $48 million in the prior year. The change was predominantly attributable to a $15 million net unfavorable model refinement, unfavorable mortality and higher lapses in the current year.

• Our fixed annuities business decreased $2 million predominantly from lower investment income, partially offset by lower interest credited in the current year. The prior year included an $8 million unfavorable correction related to state guaranty funds that did not recur.

Revenues

Premiums

• Our long-term care insurance business increased $31 million largely from $21 million of increased premiums in the current year from in-force rate actions approved and implemented.

• Our life insurance business decreased $8 million mainly driven by continued runoff of our term life insurance products, including higher lapses primarily from our large 15-year and 20-year term life insurance blocks entering their post-level guaranteed premium rate periods, partially offset by lower reinsurance ceded in the current year.

Net investment income

• Our long-term care insurance business increased $16 million largely from higher average invested assets due to growth of our in-force block, partially offset by lower reinvestment yields and $4 million of lower income related to inflation-driven volatility on U.S. Government Treasury Inflation Protected Securities (“TIPS”) in the current year.

• Our life insurance business decreased $4 million primarily due to a less favorable prepayment speed adjustment on structured securities in the current year.

• Our fixed annuities business decreased $24 million largely attributable to lower average invested assets in the current year.

Net investment gains (losses). The increase was driven largely by our long-term care insurance business predominantly from higher net gains from the sale of investment securities in the current year.

Policy fees and other income. The decrease was mostly attributable to our life insurance business primarily as a result of suspending sales of these products on March 7, 2016 and a decline in our term universal and universal life insurance in-force blocks in the current year. The decrease was also driven by an $8 million unfavorable model refinement in the current year.

Benefits and expenses

Benefits and other changes in policy reserves

• Our long-term care insurance business decreased $366 million principally from the completion of our annual review of our claim reserves conducted during the third quarter of 2016 which resulted in higher

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claim reserves of $435 million, net of reinsurance. The decrease was partially offset by aging and growth of the in-force block, higher severity on new claims and a less favorable impact of $7 million from reduced benefits in the current year related to in-force rate actions approved and implemented.

• Our life insurance business increased $64 million primarily attributable to a $30 million unfavorable model refinement, unfavorable mortality and higher universal life insurance reserves in the current year reflecting our previously updated assumptions from the fourth quarter of 2016.

• Our fixed annuities business increased $1 million as $3 million of higher reserves from loss recognition testing in our fixed immediate annuity products were mostly offset by lower interest credited in the current year.

Interest credited. Interest credited decreased mostly driven by our fixed annuities business predominantly from lower average account values in the current year.

Acquisition and operating expenses, net of deferrals

• Our life insurance business increased $5 million primarily from lower deferrals due to block runoff, partially offset by lower operating expenses in the current year attributable to the suspension of sales on March 7, 2016.

• Our fixed annuities business decreased $8 million largely attributable to a $12 million unfavorable correction related to state guaranty funds in the prior year that did not recur.

Amortization of deferred acquisition costs and intangibles. The decrease in amortization of DAC and intangibles was primarily related to our life insurance business principally as a result of a net $15 million favorable model refinement in the current year. The decrease was partially offset by higher amortization in our term universal life insurance product reflecting previously updated lapse assumptions. In the current year, we have also experienced higher lapses and accelerated DAC amortization associated with our large 15-year and 20-year term life insurance blocks entering their post-level guaranteed level premium rate periods.

Provision for income taxes. The effective tax rate was 35.3% for the three months ended September 30, 2017 and 2016.

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Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

The following table sets forth the results of operations relating to our U.S. Life Insurance segment for the periods indicated:

	Nine months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	2,242		$	1,917		$	325		17	%
Net investment income		2,058			2,049			9		—	%
Net investment gains (losses)		91			119			(28	)	(24	)%
Policy fees and other income		494			532			(38	)	(7	)%
Total revenues		4,885			4,617			268		6	%
Benefits and expenses:
Benefits and other changes in policy reserves		3,582			3,403			179		5	%
Interest credited		389			427			(38	)	(9	)%
Acquisition and operating expenses, net of deferrals		450			513			(63	)	(12	)%
Amortization of deferred acquisition costs and intangibles		221			231			(10	)	(4	)%
Interest expense		9			35			(26	)	(74	)%
Total benefits and expenses		4,651			4,609			42		1	%
Income from continuing operations before income taxes		234			8			226		NM	(1)
Provision for income taxes		83			3			80		NM	(1)
Income from continuing operations		151			5			146		NM	(1)
Adjustments to income from continuing operations:
Net investment (gains) losses, net (2)		(93	)		(129	)		36		28	%
(Gains) losses from life block transactions		—			9			(9	)	(100	)%
Expenses related to restructuring		—			19			(19	)	(100	)%
(Gains) losses on sale of businesses		—			(1	)		1		100	%
Taxes on adjustments		33			36			(3	)	(8	)%
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders	$	91		$	(61	)	$	152		NM	(1)

⁽¹⁾ We define “NM” as not meaningful for increases or decreases greater than 200%.

⁽²⁾  For the nine months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(2) million and $(10) million, respectively.

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The following table sets forth adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for the businesses included in our U.S. Life Insurance segment for the periods indicated:

	Nine months ended September 30,					Increase (decrease) and percentage change
(Amounts in millions)	2017		2016			2017 vs. 2016
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:
Long-term care insurance	$	42	$	(199	)	$	241		121	%
Life insurance		6		110			(104	)	(95	)%
Fixed annuities		43		28			15		54	%
Total adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders	$	91	$	(61	)	$	152		NM	(1)

⁽¹⁾ We define “NM” as not meaningful for increases or decreases greater than 200%.

Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders

• Our long-term care insurance business had adjusted operating income available to Genworth Financial, Inc.’s common stockholders of $42 million in the current year compared to an adjusted operating loss available to Genworth Financial, Inc.’s common stockholders of $199 million in the prior year. The change was predominantly attributable to higher claim reserves of $283 million as a result of the completion of our annual review of our claim reserves conducted during the third quarter of 2016. The increase was also attributable to $44 million of unfavorable adjustments which included refinements to the calculations of reserves in the prior year that did not recur and higher incremental premiums and reduced benefits of $18 million from in-force rate actions approved and implemented. These increases were partially offset by higher severity on new claims and higher incremental reserves of $42 million recorded in connection with an accrual for profits followed by losses as a result of higher profitability driven by favorable claim terminations in the current year.

• Our life insurance business decreased $104 million predominantly from a $20 million net unfavorable term conversion mortality assumption correction, unfavorable mortality and a $15 million net unfavorable model refinement in the current year. The decrease was also attributable to higher reserves in the current year reflecting previously updated assumptions from the fourth quarter of 2016. These decreases were partially offset by lower financing costs in the current year.

• Our fixed annuities business increased $15 million predominantly from an $8 million unfavorable correction related to state guaranty funds and a $7 million net unfavorable impact from the recapture of certain life-contingent products by a third-party in the prior year that did not recur.

Revenues

Premiums

• Our long-term care insurance business increased $34 million largely from $71 million of increased premiums in the current year from in-force rate actions approved and implemented, partially offset by policy terminations in the current year.

• Our life insurance business increased $294 million mainly attributable to the impact of a reinsurance treaty under which we initially ceded $326 million of certain term life insurance premiums as part of a life block transaction in the first quarter of 2016, partially offset by the continued runoff of our term life insurance products in the current year.

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Net investment income

• Our long-term care insurance business increased $68 million largely from higher average invested assets due to growth of our in-force block, partially offset by lower yields in the current year.

• Our fixed annuities business decreased $56 million largely due to lower average invested assets in the current year.

Net investment gains (losses)

• Net investment gains in our long-term care insurance business decreased $90 million primarily related to net gains of $130 million from the sale of TIPS in the prior year that did not recur and lower derivative gains in the current year.

• Net investment gains in our life insurance business increased $10 million largely from higher net gains from the sale of investment securities and lower impairments in the current year.

• Our fixed annuities business had net investment gains of $6 million in the current year compared to net investment losses of $46 million in the prior year. Net investment gains in the current year resulted from derivative gains and net gains from the sale of investment securities, partially offset by losses on embedded derivatives related to our fixed indexed annuities. Net investment losses in the prior year related to impairments, losses on embedded derivatives related to our fixed indexed annuities and net losses from the sale of investment securities, partially offset by derivative gains.

Policy fees and other income. The decrease was mostly attributable to our life insurance business primarily as a result of suspending sales of these products on March 7, 2016 and a decline in our term universal and universal life insurance in-force blocks in the current year. The decrease was also related to an $8 million unfavorable model refinement in the current year.

Benefits and expenses

Benefits and other changes in policy reserves

• Our long-term care insurance business decreased $292 million principally from the completion of our annual review of our claim reserves conducted during the third quarter of 2016 which resulted in higher claim reserves of $435 million, net of reinsurance. The decrease was also attributable to $68 million of unfavorable adjustments which included refinements to the calculations of reserves in the prior year that did not recur and favorable claim terminations in the current year. These decreases were partially offset by aging and growth of the in-force block, higher severity on new claims, higher incremental reserves of $64 million recorded in connection with an accrual for profits followed by losses and a $38 million less favorable impact from reduced benefits in the current year related to in-force rate actions approved and implemented.

• Our life insurance business increased $429 million principally related to the impact of a reinsurance treaty under which we initially ceded $331 million of certain term life insurance reserves as part of a life block transaction in the first quarter of 2016. The increase was also attributable to higher universal and term universal life insurance reserves reflecting our previously updated assumptions from the fourth quarter of 2016 and unfavorable mortality in the current year. The current year also included a $30 million unfavorable model refinement.

• Our fixed annuities business increased $42 million largely attributable to $45 million of lower assumed reinsurance in connection with the recapture of certain life-contingent products by a third party in the prior year that did not recur, partially offset by favorable mortality in the current year.

Interest credited. Interest credited decreased driven mostly by our fixed annuities business predominantly from lower average account values and a decrease in crediting rates in the current year.

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Acquisition and operating expenses, net of deferrals

• Our long-term care insurance business increased $24 million from guaranty fund assessments in connection with the Penn Treaty liquidation in the current year.

• Our life insurance business decreased $19 million primarily from lower operating expenses attributable to the suspension of sales on March 7, 2016. The decrease was also attributable to $7 million of restructuring charges and expenses of $5 million associated with the life block transaction in the prior year that did not recur.

• Our fixed annuities business decreased $68 million largely attributable to a $55 million payment in connection with the recapture of certain life-contingent products by a third party in the prior year that did not recur and lower operating expenses as a result of the suspension of sales on March 7, 2016. The prior year included an unfavorable correction of $12 million related to state guaranty funds.

Amortization of deferred acquisition costs and intangibles

• Our long-term care insurance business decreased $8 million principally from a smaller in-force block in the current year as a result of lower sales.

• Our life insurance business increased $17 million largely related to a $41 million unfavorable term conversion mortality assumption correction and higher amortization in our term universal life insurance product reflecting previously updated lapse assumptions, partially offset by a net $15 million favorable model refinement and an $11 million refinement related to reinsurance rates in the current year.

• Our fixed annuities business decreased $19 million predominantly related to the write-off of DAC in connection with loss recognition testing in our fixed immediate annuity products of $14 million in the prior year that did not recur.

Interest expense. Interest expense decreased driven by our life insurance business principally as a result of the life block transaction in the first quarter of 2016 which included the redemption of certain non-recourse funding obligations and the write-off of $9 million of deferred borrowing costs associated with our non-recourse funding obligations as well as the restructuring of a captive reinsurance entity.

Provision for income taxes. The effective tax rate was 35.3% for the nine months ended September 30, 2017 and 2016.

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U.S. Life Insurance selected operating performance measures

Long-term care insurance

The following table sets forth selected operating performance measures regarding our long-term care insurance business as of or for the dates indicated:

	Three months ended September 30,						Increase (decrease) and percentage change					Nine months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016					2017			2016			2017 vs. 2016
Net earned premiums:
Individual long-term care insurance	$	613		$	591		$	22		4	%	$	1,815		$	1,792		$	23		1	%
Group long-term care insurance		28			19			9		47	%		83			72			11		15	%
Total	$	641		$	610		$	31		5	%	$	1,898		$	1,864		$	34		2	%
Annualized first-year premiums and deposits:
Individual long-term care insurance	$	2		$	2		$	—		—	%	$	6		$	11		$	(5	)	(45	)%
Group long-term care insurance		1			3			(2	)	(67	)%		3			7			(4	)	(57	)%
Total	$	3		$	5		$	(2	)	(40	)%	$	9		$	18		$	(9	)	(50	)%
Loss ratio		79	%		146	%		(67	)%				74	%		94	%		(20	)%

The loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums.

Net earned premiums increased for the three months ended September 30, 2017 mostly from $21 million of increased premiums in the current year from in-force rate actions approved and implemented. Net earned premiums increased for the nine months ended September 30, 2017 mostly from $71 million of increased premiums in the current year from in-force rate actions approved and implemented, partially offset by policy terminations in the current year.

Annualized first-year premiums and deposits decreased principally from lower sales due to our current ratings.

The loss ratio decreased for the three and nine months ended September 30, 2017 largely related to the decrease in benefits and other changes in reserves and the increase in premiums as discussed above.

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Life insurance

The following tables set forth selected operating performance measures regarding our life insurance business as of or for the dates indicated:

	Three months ended September 30,				Increase (decrease) and percentage change					Nine months ended September 30,				Increase (decrease) and percentage change
(Amounts in millions)	2017		2016		2017 vs. 2016					2017		2016		2017 vs. 2016
Term and whole life insurance
Net earned premiums	$	107	$	115	$	(8	)	(7	)%	$	344	$	50	$	294		NM	(1)
Sales		—		—		—		—	%		—		7		(7	)	(100	)%
Term universal life insurance
Net deposits	$	59	$	62	$	(3	)	(5	)%	$	184	$	191	$	(7	)	(4	)%
Universal life insurance
Net deposits	$	81	$	86	$	(5	)	(6	)%	$	250	$	297	$	(47	)	(16	)%
Sales:
Universal life insurance		1		1		—		—	%		2		4		(2	)	(50	)%
Linked-benefits		—		—		—		—	%		—		3		(3	)	(100	)%
Total life insurance
Net earned premiums and deposits	$	247	$	263	$	(16	)	(6	)%	$	778	$	538	$	240		45	%
Sales:
Term life insurance		—		—		—		—	%		—		7		(7	)	(100	)%
Universal life insurance		1		1		—		—	%		2		4		(2	)	(50	)%
Linked-benefits		—		—		—		—	%		—		3		(3	)	(100	)%

⁽¹⁾ We define “NM” as not meaningful for increases or decreases greater than 200%.

	As of September 30,				Percentage change
(Amounts in millions)	2017		2016		2017 vs. 2016
Term and whole life insurance
Life insurance in-force, net of reinsurance	$	196,872	$	204,549		(4	)%
Life insurance in-force before reinsurance		467,821		494,642		(5	)%
Term universal life insurance
Life insurance in-force, net of reinsurance	$	119,442	$	123,770		(3	)%
Life insurance in-force before reinsurance		120,291		124,670		(4	)%
Universal life insurance
Life insurance in-force, net of reinsurance	$	37,335	$	40,237		(7	)%
Life insurance in-force before reinsurance		42,726		46,038		(7	)%
Total life insurance
Life insurance in-force, net of reinsurance	$	353,649	$	368,556		(4	)%
Life insurance in-force before reinsurance		630,838		665,350		(5	)%

Term and whole life insurance

Net earned premiums decreased during the three months ended September 30, 2017 primarily from continued runoff of our term life insurance products, including higher lapses primarily from our large 15-year and 20-year term life insurance blocks entering their post-level guaranteed premium rate periods, partially offset by lower reinsurance ceded in the current year.

Net earned premiums increased during the nine months ended September 30, 2017 primarily related to the impact of a reinsurance treaty under which we initially ceded $326 million of certain term life insurance

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premiums as part of a life block transaction in the first quarter of 2016, partially offset by the continued runoff of our term life insurance products in the current year.

Sales of our term life insurance products decreased from the suspension of sales of our traditional life insurance products on March 7, 2016. While we no longer solicit sales of these products, we continue to service our existing block of business.

Term universal life insurance

We no longer solicit sales of term universal life insurance products; however, we continue to service our existing block of business.

Universal life insurance

Net deposits of our universal life insurance products decreased from the suspension of sales of our traditional life insurance products on March 7, 2016. While we no longer solicit sales of these products, we continue to service our existing block of business.

Fixed annuities

The following table sets forth selected operating performance measures regarding our fixed annuities as of or for the dates indicated:

	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Single Premium Deferred Annuities
Account value, beginning of period	$	11,321		$	12,191		$	11,806		$	12,480
Deposits		3			3			7			175
Surrenders, benefits and product charges		(383	)		(270	)		(1,031	)		(879	)
Net flows		(380	)		(267	)		(1,024	)		(704	)
Interest credited and investment performance		79			86			238			234
Account value, end of period	$	11,020		$	12,010		$	11,020		$	12,010
Single Premium Immediate Annuities
Account value, beginning of period	$	4,752		$	5,198		$	4,853		$	5,180
Premiums and deposits		24			25			64			75
Surrenders, benefits and product charges		(151	)		(173	)		(474	)		(572	)
Net flows		(127	)		(148	)		(410	)		(497	)
Interest credited		52			56			159			173
Effect of accumulated net unrealized investment gains (losses)		9			23			84			273
Account value, end of period	$	4,686		$	5,129		$	4,686		$	5,129
Structured Settlements
Account value, net of reinsurance, beginning of period	$	1,055		$	1,061		$	1,061		$	1,066
Surrenders, benefits and product charges		(17	)		(11	)		(51	)		(44	)
Net flows		(17	)		(11	)		(51	)		(44	)
Interest credited		14			14			42			42
Account value, net of reinsurance, end of period	$	1,052		$	1,064		$	1,052		$	1,064
Total premiums from fixed annuities	$	—		$	—		$	—		$	3
Total deposits from fixed annuities	$	27		$	28		$	71		$	247

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We no longer solicit sales of our traditional fixed annuity products; however, we continue to service our existing block of business.

Single Premium Deferred Annuities

Account value of our single premium deferred annuities decreased as surrenders and benefits outpaced interest credited. Deposits decreased primarily related to the suspension of sales of our traditional fixed annuity products on March 7, 2016.

Single Premium Immediate Annuities

Account value of our single premium immediate annuities decreased as benefits exceeded interest credited, net unrealized investment gains and premiums. Sales decreased predominantly related to the suspension of sales of our traditional fixed annuity products on March 7, 2016.

Runoff segment

Trends and conditions

Results of our Runoff segment are affected primarily by investment performance, interest rate levels, net interest spreads, equity market conditions, mortality, policyholder loan activity, policyholder surrenders and scheduled maturities. In addition, the results of our Runoff segment can significantly impact our operating performance, regulatory capital requirements, distributable earnings and liquidity.

We discontinued sales of our individual and group variable annuities in 2011; however, we continue to service our existing blocks of variable annuity business and accept additional deposits on existing contracts. Equity market volatility has caused fluctuations in the results of our variable annuity products and regulatory capital requirements. In the future, equity and interest rate market performance and volatility could result in additional gains or losses in our variable annuity products although associated hedging activities are expected to partially mitigate these impacts. Volatility in the results of our variable annuity products can result in favorable or unfavorable impacts on earnings and statutory capital. In addition to the use of hedging activities to help mitigate impacts related to equity market volatility and interest rate risks, in the future, we may consider reinsurance opportunities to further mitigate volatility in results and manage capital.

The results of our institutional products are impacted by scheduled maturities of the liabilities, credit and interest income performance on assets, as well as liquidity levels. However, we believe our liquidity planning and our asset-liability management will mitigate this risk. While we do not actively sell institutional products, we may periodically issue funding agreements for asset-liability matching purposes.

Several factors may impact the time period for these products to runoff including the specific policy types, economic conditions and management strategies.

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Segment results of operations

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

The following table sets forth the results of operations relating to our Runoff segment for the periods indicated:

	Three months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Net investment income	$	40		$	37		$	3		8	%
Net investment gains (losses)		9			4			5		125	%
Policy fees and other income		41			43			(2	)	(5	)%
Total revenues		90			84			6		7	%
Benefits and expenses:
Benefits and other changes in policy reserves		5			2			3		150	%
Interest credited		36			33			3		9	%
Acquisition and operating expenses, net of deferrals		16			20			(4	)	(20	)%
Amortization of deferred acquisition costs and intangibles		7			7			—		—	%
Interest expense		—			1			(1	)	(100	)%
Total benefits and expenses		64			63			1		2	%
Income from continuing operations before income taxes		26			21			5		24	%
Provision for income taxes		8			6			2		33	%
Income from continuing operations		18			15			3		20	%
Adjustments to income from continuing operations:
Net investment (gains) losses, net (1)		(8	)		(4	)		(4	)	(100	)%
Taxes on adjustments		3			1			2		200	%
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	13		$	12		$	1		8	%

⁽¹⁾ For the three months ended September 30, 2017, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $1 million.

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders increased slightly as lower operating expenses were mostly offset by higher tax expenses in the current year.

Revenues

Net investment gains increased predominantly from higher derivative gains and lower net losses from the sale of investment securities, partially offset by lower gains on embedded derivatives associated with our variable annuity products with guaranteed minimum withdrawal benefits (“GMWBs”) in the current year.

Benefits and expenses

Acquisition and operating expenses, net of deferrals, decreased mostly from lower state guaranty fund assessments in the current year.

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Provision for income taxes. The effective tax rate increased to 30.7% for the three months ended September 30, 2017 from 29.1% for the three months ended September 30, 2016. The increase in the effective tax rate is primarily attributable to changes in tax favored investments in relation to pre-tax results in the current year compared to the prior year.

Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

The following table sets forth the results of operations relating to our Runoff segment for the periods indicated:

	Nine months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Net investment income	$	119		$	108		$	11		10	%
Net investment gains (losses)		24			(17	)		41		NM	(1)
Policy fees and other income		123			127			(4	)	(3	)%
Total revenues		266			218			48		22	%
Benefits and expenses:
Benefits and other changes in policy reserves		18			26			(8	)	(31	)%
Interest credited		105			96			9		9	%
Acquisition and operating expenses, net of deferrals		47			54			(7	)	(13	)%
Amortization of deferred acquisition costs and intangibles		20			25			(5	)	(20	)%
Interest expense		1			1			—		—	%
Total benefits and expenses		191			202			(11	)	(5	)%
Income from continuing operations before income taxes		75			16			59		NM	(1)
Provision for income taxes		23			2			21		NM	(1)
Income from continuing operations		52			14			38		NM	(1)
Adjustments to income from continuing operations:
Net investment (gains) losses, net (2)		(22	)		12			(34	)	NM	(1)
Taxes on adjustments		8			(4	)		12		NM	(1)
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	38		$	22		$	16		73	%

⁽¹⁾ We define “NM” as not meaningful for increases or decreases greater than 200%.

⁽²⁾ For the nine months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $2 million and $(5) million, respectively.

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders increased primarily driven by favorable equity market performance in the current year.

Revenues

Net investment income increased mainly driven by higher policy loan income in our corporate-owned life insurance products in the current year.

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Net investment gains in the current year were primarily related to gains on embedded derivatives associated with our variable annuity products with GMWBs, partially offset by derivative losses. Net investment losses in the prior year were largely related to losses on embedded derivatives associated with our variable annuity products with GMWBs, partially offset by net gains from the sale of investment securities and derivative gains.

Benefits and expenses

Benefits and other changes in policy reserves decreased primarily attributable to lower GMDB reserves in our variable annuity products due to favorable equity market performance in the current year.

Interest credited increased largely related to higher cash values in our corporate-owned life insurance products in the current year.

Acquisition and operating expenses, net of deferrals, decreased largely driven by lower state guaranty fund assessments in the current year.

Amortization of DAC and intangibles decreased related to our variable annuity products principally from favorable equity market performance in the current year.

Provision for income taxes. The effective tax rate increased to 30.4% for the nine months ended September 30, 2017 from 12.1% for the nine months ended September 30, 2016. The increase in the effective tax rate was primarily attributable to tax favored investments in relation to pre-tax results in the current year compared to the prior year.

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Runoff selected operating performance measures

Variable annuity and variable life insurance products

The following table sets forth selected operating performance measures regarding our variable annuity and variable life insurance products as of or for the dates indicated:

	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Variable Annuities—Income Distribution Series (1)
Account value, beginning of period	$	4,526		$	4,849		$	4,581		$	4,942
Deposits		5			6			13			17
Surrenders, benefits and product charges		(132	)		(151	)		(425	)		(431	)
Net flows		(127	)		(145	)		(412	)		(414	)
Interest credited and investment performance		98			90			328			266
Account value, end of period	$	4,497		$	4,794		$	4,497		$	4,794
Traditional Variable Annuities
Account value, net of reinsurance, beginning of period	$	1,149		$	1,177		$	1,167		$	1,241
Deposits		2			2			6			6
Surrenders, benefits and product charges		(52	)		(47	)		(162	)		(154	)
Net flows		(50	)		(45	)		(156	)		(148	)
Interest credited and investment performance		41			49			129			88
Account value, net of reinsurance, end of period	$	1,140		$	1,181		$	1,140		$	1,181
Variable Life Insurance
Account value, beginning of period	$	295		$	283		$	283		$	291
Deposits		1			1			5			5
Surrenders, benefits and product charges		(10	)		(7	)		(27	)		(24	)
Net flows		(9	)		(6	)		(22	)		(19	)
Interest credited and investment performance		10			8			35			13
Account value, end of period	$	296		$	285		$	296		$	285

⁽¹⁾ The Income Distribution Series products are comprised of our deferred and immediate variable annuity products, including those variable annuity products with rider options that provide guaranteed income benefits, including GMWBs and certain types of guaranteed annuitization benefits. These products do not include fixed single premium immediate annuities or deferred annuities, which may also serve income distribution needs.

We no longer solicit sales of our variable annuity or variable life insurance products; however, we continue to service our existing blocks of business and accept additional deposits on existing contracts and policies.

Variable Annuities—Income Distribution Series

Account value related to our Income Distribution Series products decreased compared to June 30, 2017 and December 31, 2016 primarily related to surrenders outpacing favorable equity market performance.

Traditional Variable Annuities

In our traditional variable annuities, the decrease in account values compared to June 30, 2017 and December 31, 2016 was primarily the result of surrenders outpacing favorable equity market performance.

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Institutional products

The following table sets forth selected operating performance measures regarding our institutional products as of or for the dates indicated:

	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
GICs, FABNs and Funding Agreements
Account value, beginning of period	$	460		$	561		$	560		$	410
Deposits		—			—			—			150
Surrenders and benefits		(102	)		(2	)		(206	)		(4	)
Net flows		(102	)		(2	)		(206	)		146
Interest credited		2			2			6			5
Account value, end of period	$	360		$	561		$	360		$	561

Account value related to our institutional products decreased compared to June 30, 2017 and December 31, 2016 mainly attributable to scheduled maturities of certain products in the current year. Deposits in the prior year related to funding agreements for asset-liability management and yield enhancement.

Corporate and Other Activities

Results of operations

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

The following table sets forth the results of operations relating to Corporate and Other activities for the periods indicated:

	Three months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	3		$	2		$	1		50	%
Net investment income		4			1			3		NM	(1)
Net investment gains (losses)		(7	)		(9	)		2		22	%
Policy fees and other income		1			(1	)		2		200	%
Total revenues		1			(7	)		8		114	%
Benefits and expenses:
Benefits and other changes in policy reserves		2			1			1		100	%
Acquisition and operating expenses, net of deferrals		19			11			8		73	%
Amortization of deferred acquisition costs and intangibles		2			1			1		100	%
Interest expense		63			67			(4	)	(6	)%
Total benefits and expenses		86			80			6		8	%
Loss from continuing operations before income taxes		(85	)		(87	)		2		2	%
Provision (benefit) for income taxes		(23	)		246			(269	)	(109	)%
Loss from continuing operations		(62	)		(333	)		271		81	%
Adjustments to loss from continuing operations:
Net investment (gains) losses		7			9			(2	)	(22	)%
Taxes on adjustments		(3	)		(3	)		—		—	%
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders	$	(58	)	$	(327	)	$	269		82	%

⁽¹⁾  We define “NM” as not meaningful for increases or decreases greater than 200%.

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Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders

The adjusted operating loss available to Genworth Financial, Inc.’s common stockholders decreased primarily related to tax charges of $265 million in the prior year that did not recur and lower interest expense in the current year, partially offset by unfavorable tax charges related to prior period tax returns recorded in the third quarter of 2017.

Revenues

Net investment income increased primarily related to higher yields in the current year.

The decrease in net investment losses was primarily related to lower losses from derivatives in the current year.

Benefits and expenses

Acquisition and operating expenses, net of deferrals, increased mainly driven by higher consulting fees in the current year.

Interest expense decreased largely driven by a contractual change in our junior subordinated notes related to an interest rate change from fixed to floating rates in the current year.

The income tax benefit in the current year was principally from lower taxed foreign income. The income tax provision in the prior year was largely attributable to a valuation allowance of $265 million recorded on deferred tax assets that did not recur.

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Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

The following table sets forth the results of operations relating to Corporate and Other activities for the periods indicated:

	Nine months ended September 30,						Increase (decrease) and percentage change
(Amounts in millions)	2017			2016			2017 vs. 2016
Revenues:
Premiums	$	6		$	11		$	(5	)	(45	)%
Net investment income		5			4			1		25	%
Net investment gains (losses)		(31	)		(88	)		57		65	%
Policy fees and other income		(2	)		76			(78	)	(103	)%
Total revenues		(22	)		3			(25	)	NM	(1)
Benefits and expenses:
Benefits and other changes in policy reserves		3			4			(1	)	(25	)%
Acquisition and operating expenses, net of deferrals		47			173			(126	)	(73	)%
Amortization of deferred acquisition costs and intangibles		2			1			1		100	%
Interest expense		179			205			(26	)	(13	)%
Total benefits and expenses		231			383			(152	)	(40	)%
Loss from continuing operations before income taxes		(253	)		(380	)		127		33	%
Provision (benefit) for income taxes		(85	)		119			(204	)	(171	)%
Loss from continuing operations		(168	)		(499	)		331		66	%
Adjustments to loss from continuing operations:
Net investment (gains) losses		31			88			(57	)	(65	)%
(Gains) losses on sale of businesses		—			(2	)		2		100	%
(Gains) losses on early extinguishment of debt		—			(48	)		48		100	%
Expenses related to restructuring		1			2			(1	)	(50	)%
Fees associated with bond consent solicitation		—			18			(18	)	(100	)%
Taxes on adjustments		(11	)		(43	)		32		74	%
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders	$	(147	)	$	(484	)	$	337		70	%

⁽¹⁾  We define “NM” as not meaningful for increases or decreases greater than 200%.

Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders

The adjusted operating loss available to Genworth Financial, Inc.’s common stockholders decreased primarily related to tax charges of $265 million in the prior year that did not recur and lower operating and interest expense in the current year.

Revenues

Premiums decreased largely related to the sale of our European mortgage insurance business in May 2016.

The decrease in net investment losses was primarily related to a $64 million loss from the write-off of our residual interest in certain policy loan securitization entities in the prior year that did not recur and from lower derivative losses in the current year. These decreases were partially offset by net losses from the sale of investment securities in the current year compared to net gains in the prior year.

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Policy fees and other income in the prior year included a gain of $64 million from the early extinguishment of debt related to the redemption of a securitization entity and a gain of $11 million attributable to the sale of assets to Pac Life that did not recur.

Benefits and expenses

Acquisition and operating expenses, net of deferrals, decreased mainly driven by expenses in the prior year that did not recur. The prior year expenses included $79 million of a litigation settlement and related legal expenses, $20 million of expenses related to the early redemption of debt, $18 million of bond consent fees and a $9 million loss related to the sale of our European mortgage insurance business. These decreases were partially offset by higher consulting fees in the current year.

Interest expense decreased largely driven by a favorable correction of $11 million related to our Tax Matters Agreement liability and a contractual change in our junior subordinated notes related to an interest rate change from fixed to floating rates.

The income tax benefit in the current year was principally from lower taxed foreign income. The income tax provision in the prior year was largely attributable to a valuation allowance of $265 million recorded on deferred tax assets that did not recur.

Investments and Derivative Instruments

Trends and conditions

Investments—credit and investment markets

During the third quarter of 2017, the U.S. Federal Reserve announced that it would begin to normalize monetary policy and scale back quantitative easing. Interest rates remain at historically low levels despite the fact the U.S. Federal Reserve has raised its benchmark lending rate two times in 2017 and market expectations remain for one additional rate increase during 2017. Despite the Federal Reserve’s actions, U.S. Treasury yields remained lower throughout the third quarter of 2017 but rose significantly in the last week of September 2017, in response to potential tax reform. However, pro-growth stimulus policies are still uncertain and weaker inflation data has investors more cautious on the direction of longer term interest rates. The U.S. equity markets increased and credit spreads tightened during the third quarter of 2017. Spreads initially widened when geopolitical issues and natural disasters arose, but quickly tightened driven by both positive economic data and corporate profits. U.S. fixed income markets saw reduced issuances, but demand from foreign and domestic investors continued to support valuations. Global equity markets were generally higher and the economies of the Eurozone countries continue to improve.

As of September 30, 2017, our fixed maturities securities portfolio, which was 96% investment grade, comprised 86% of our total investment portfolio. Our $3.9 billion energy portfolio was predominantly investment grade and our metals and mining sector holdings were less than 1% of our total cash, cash equivalents and invested assets as of September 30, 2017. We believe our energy portfolio is well-diversified and would expect manageable capital impact on our U.S. life insurance subsidiaries.

Derivatives

We actively responded to the risk in our derivatives portfolio arising from our counterparties’ right to terminate their bilateral over-the-counter (“OTC”) derivatives transactions with us following the downgrades of our life insurance subsidiaries by S&P in September 2017 and by Moody’s in October 2017. We notified our counterparties of the downgrades to determine whether they would exercise their rights to terminate the transactions, agree to maintain the transactions with us under revised terms or permit us to move the transactions to clearing through the Chicago Mercantile Exchange (“CME”). Although some counterparties have indicated

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that they reserve their rights to take action against us, only one counterparty has done so. During October 2017, this counterparty terminated approximately $800 million notional with us, which we have re-hedged using financial futures. We also continue to discuss the downgrades with the other counterparties.

As of September 30, 2017, $14.2 billion notional of our derivatives portfolio was cleared through the CME. The customer swap agreements that govern our cleared derivatives contain provisions that enable our clearing agents to request initial margin in excess of CME requirements. As of September 30, 2017, we posted initial margin of $314 million to our clearing agents, which represented approximately $77 million more than was otherwise required by the clearinghouse. Because our clearing agents serve as guarantors of our obligations to the CME, the customer agreements contain broad termination provisions that are not specifically dependent on ratings and may be more easily terminated for other reasons. As of September 30, 2017, $5.9 billion notional of our derivatives portfolio was in bilateral OTC derivatives transactions pursuant to which we have posted aggregate independent amounts of $261 million and are holding collateral from counterparties in the amount of $187 million. We have notional of $3.7 billion in bilateral OTC derivatives where the counterparty has the right to terminate its transactions with us based on our current ratings. Given our current ratings, our ability to enter into new derivatives transactions is limited.

Investment results

The following tables set forth information about our investment income, excluding net investment gains (losses), for each component of our investment portfolio for the periods indicated:

	Three months ended September 30,												Increase (decrease)
(Amounts in millions)	2017						2016						2017 vs. 2016
	Yield			Amount			Yield			Amount			Yield			Amount
Fixed maturity securities—taxable		4.5	%	$	640			4.6	%	$	655			(0.1	)%	$	(15	)
Fixed maturity securities—non-taxable		3.7	%		3			3.7	%		3			—	%		—
Commercial mortgage loans		5.0	%		78			5.2	%		79			(0.2	)%		(1	)
Restricted commercial mortgage loans related to securitization entities		10.5	%		3			7.4	%		3			3.1	%		—
Equity securities		5.1	%		9			5.8	%		8			(0.7	)%		1
Other invested assets		61.6	%		39			24.7	%		34			36.9	%		5
Policy loans		8.6	%		39			8.7	%		38			(0.1	)%		1
Cash, cash equivalents and short-term investments		1.1	%		10			0.6	%		5			0.5	%		5
Gross investment income before expenses and fees		4.7	%		821			4.7	%		825			—	%		(4	)
Expenses and fees		(0.2	)%		(24	)		(0.1	)%		(20	)		(0.1	)%		(4	)
Net investment income		4.5	%	$	797			4.6	%	$	805			(0.1	)%	$	(8	)
Average invested assets and cash				$	70,400					$	69,825					$	575

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	Nine months ended September 30,												Increase (decrease)
	2017						2016						2017 vs. 2016
(Amounts in millions)	Yield			Amount			Yield			Amount			Yield			Amount
Fixed maturity securities—taxable		4.5	%	$	1,930			4.6	%	$	1,930			(0.1	)%	$	—
Fixed maturity securities—non-taxable		3.7	%		9			3.6	%		9			0.1	%		—
Commercial mortgage loans		5.0	%		231			5.2	%		237			(0.2	)%		(6	)
Restricted commercial mortgage loans related to securitization entities		7.8	%		7			7.2	%		8			0.6	%		(1	)
Equity securities		5.1	%		26			5.7	%		20			(0.6	)%		6
Other invested assets		45.7	%		106			24.0	%		105			21.7	%		1
Restricted other invested assets related to securitization entities		1.1	%		1			1.1	%		3			—	%		(2	)
Policy loans		9.0	%		120			8.6	%		107			0.4	%		13
Cash, cash equivalents and short-term investments		1.0	%		26			0.5	%		16			0.5	%		10
Gross investment income before expenses and fees		4.7	%		2,456			4.6	%		2,435			0.1	%		21
Expenses and fees		(0.2	)%		(68	)		(0.1	)%		(62	)		(0.1	)%		(6	)
Net investment income		4.5	%	$	2,388			4.5	%	$	2,373			—	%	$	15
Average invested assets and cash				$	70,018					$	69,837					$	181

Yields are based on net investment income as reported under U.S. GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity and equity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability.

For the three months ended September 30, 2017, annualized weighted-average investment yields decreased primarily attributable to lower investment income on higher average invested assets. Net investment income included $7 million of lower favorable prepayment speed adjustments on structured securities and $4 million of lower bond call and prepayment income as compared to the prior year.

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Available-for-sale securities:
Realized gains	$	40		$	39		$	177		$	205
Realized losses		(10	)		(24	)		(55	)		(75	)
Net realized gains (losses) on available-for-sale securities		30			15			122			130
Impairments:
Total other-than-temporary impairments		(1	)		(2	)		(4	)		(35	)
Portion of other-than-temporary impairments included in other comprehensive income (loss)		—			—			—			—
Net other-than-temporary impairments		(1	)		(2	)		(4	)		(35	)
Trading securities		—			(4	)		1			40
Commercial mortgage loans		1			(1	)		3			1
Net gains (losses) related to securitization entities		1			2			5			(51	)
Derivative instruments		54			10			93			(52	)
Contingent consideration adjustment		—			—			—			(2	)
Net investment gains (losses)	$	85		$	20		$	220		$	31

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

• We recorded $1 million of lower net other-than-temporary impairments during the three months ended September 30, 2017. The total impairments of $1 million and $2 million recorded during the three months ended September 30, 2017 and September 30, 2016, respectively, related to equity securities.

• Net investment gains related to derivatives of $54 million during the three months ended September 30, 2017 were primarily associated with various hedging programs that support our Canada Mortgage Insurance segment and hedging programs for our runoff variable annuity products. These gains were partially offset by losses related to hedging programs for our fixed indexed annuity products and derivatives used to hedge foreign currency risk associated with expected dividend payments from certain foreign subsidiaries.

Net investment gains related to derivatives of $10 million during the three months ended September 30, 2016 were primarily associated with hedging programs for our runoff variable annuity products and gains related to hedge ineffectiveness from our cash flow hedge programs for our long-term care insurance business due to a decrease in long-term interest rates. These gains were partially offset by losses in derivatives used to hedge foreign currency risk associated with assets held and expected dividend payments from certain foreign subsidiaries.

• We recorded $15 million of higher net gains related to the sale of available-for-sale securities during the three months ended September 30, 2017. We also recorded $4 million of lower losses during the three months ended September 30, 2017 related to trading securities primarily from a decline in our trading portfolio in the current year.

Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

• We recorded $31 million of lower net other-than-temporary impairments during the nine months ended September 30, 2017. Of the total impairments recorded during the nine months ended September 30, 2017 and 2016, $1 million and $24 million, respectively, related to corporate securities, $1 million and $3 million, respectively, related to limited partnerships, and $2 million in each period related to equity securities. During the nine months ended September 30, 2016, we also recorded impairments of $4 million related to commercial mortgage loans.

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• Net investment gains related to derivatives of $93 million during the nine months ended September 30, 2017 were primarily associated with various hedging programs that support our Canada Mortgage Insurance segment and hedging programs for our runoff variable annuity products. These gains were partially offset by losses related to derivatives used to hedge foreign currency risk associated with expected dividend payments from certain foreign subsidiaries and losses from hedging programs for our fixed indexed annuity products.

Net investment losses related to derivatives of $52 million during the nine months ended September 30, 2016 were primarily associated with hedging programs for our runoff variable annuity products. We also had losses associated with hedging programs for our fixed indexed annuity products. These losses were partially offset by gains related to hedge ineffectiveness from our cash flow hedge programs for our long-term care insurance business.

• We recorded $8 million of lower net gains related to the sale of available-for-sale securities during the nine months ended September 30, 2017. We also recorded $39 million of lower net gains related to trading securities during the nine months ended September 30, 2017 principally from a decline in our trading portfolio in the current year. We recorded $5 million of gains during the nine months ended September 30, 2017 compared to $51 million of losses related to securitization entities during the nine months ended September 30, 2016 primarily related to a $64 million loss from the write-off of our residual interest in certain policy loan securitization entities in the prior year that did not recur.

Investment portfolio

The following table sets forth our cash, cash equivalents and invested assets as of the dates indicated:

	September 30, 2017					December 31, 2016
(Amounts in millions)	Carrying value		% of total			Carrying value		% of total
Fixed maturity securities, available-for-sale:
Public	$	45,882		61	%	$	45,131		61	%
Private		16,670		22			15,441		21
Equity securities, available-for-sale		765		1			632		1
Commercial mortgage loans		6,268		8			6,111		8
Restricted commercial mortgage loans related to securitization entities		111		—			129		—
Policy loans		1,818		2			1,742		2
Other invested assets		1,590		2			2,071		3
Restricted other invested assets related to securitization entities		—		—			312		—
Cash and cash equivalents		2,836		4			2,784		4
Total cash, cash equivalents and invested assets	$	75,940		100	%	$	74,353		100	%

For a discussion of the change in cash, cash equivalents and invested assets, see the comparison for this line item under “—Consolidated Balance Sheets.” See note 4 in our unaudited condensed consolidated financial statements under “Item 1—Financial Statements” for additional information related to our investment portfolio.

We hold fixed maturity, equity and trading securities, derivatives, embedded derivatives, securities held as collateral and certain other financial instruments, which are carried at fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. As of September 30, 2017, approximately 7% of our investment holdings recorded at fair value were based on significant inputs that were not market observable and were classified as Level 3 measurements. See note 6 in our unaudited condensed consolidated financial statements under “Item 1—Financial Statements” for additional information related to fair value.

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Fixed maturity and equity securities

As of September 30, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

			Gross unrealized gains				Gross unrealized losses
(Amounts in millions)	Amortized cost or cost		Not other-than- temporarily impaired		Other-than- temporarily impaired		Not other-than- temporarily impaired			Other-than- temporarily impaired		Fair value
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	4,893	$	784	$	—	$	(7	)	$	—	$	5,670
State and political subdivisions		2,639		247		—		(26	)		—		2,860
Non-U.S. government (1)		2,143		107		—		(24	)		—		2,226
U.S. corporate:
Utilities		4,382		556		—		(15	)		—		4,923
Energy		2,243		207		—		(10	)		—		2,440
Finance and insurance		6,051		547		—		(11	)		—		6,587
Consumer—non-cyclical		4,330		508		—		(10	)		—		4,828
Technology and communications		2,558		193		—		(11	)		—		2,740
Industrial		1,247		102		—		(3	)		—		1,346
Capital goods		2,067		263		—		(9	)		—		2,321
Consumer—cyclical		1,506		111		—		(6	)		—		1,611
Transportation		1,188		124		—		(6	)		—		1,306
Other		358		24		—		(2	)		—		380
Total U.S. corporate (1)		25,930		2,635		—		(83	)		—		28,482
Non-U.S. corporate:
Utilities		1,022		45		—		(5	)		—		1,062
Energy		1,330		140		—		(7	)		—		1,463
Finance and insurance		2,524		177		—		(5	)		—		2,696
Consumer—non-cyclical		692		27		—		(3	)		—		716
Technology and communications		945		71		—		(2	)		—		1,014
Industrial		979		81		—		(2	)		—		1,058
Capital goods		556		33		—		(2	)		—		587
Consumer—cyclical		518		10		—		(1	)		—		527
Transportation		650		71		—		(3	)		—		718
Other		2,594		193		—		(5	)		—		2,782
Total non-U.S. corporate (1)		11,810		848		—		(35	)		—		12,623
Residential mortgage-backed (2)		3,950		255		14		(10	)		—		4,209
Commercial mortgage-backed		3,346		105		2		(39	)		—		3,414
Other asset-backed (2)		3,052		20		1		(5	)		—		3,068
Total fixed maturity securities		57,763		5,001		17		(229	)		—		62,552
Equity securities		720		59		—		(14	)		—		765
Total available-for-sale securities	$	58,483	$	5,060	$	17	$	(243	)	$	—	$	63,317

⁽¹⁾ Fair value included European periphery exposure of $523 million in Ireland, $266 million in Spain, $116 million in Italy and $38 million in Portugal.

⁽²⁾ Fair value included $38 million collateralized by Alt-A residential mortgage loans and $27 million collateralized by sub-prime residential mortgage loans.

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As of December 31, 2016, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

			Gross unrealized gains				Gross unrealized losses
(Amounts in millions)	Amortized cost or cost		Not other-than- temporarily impaired		Other-than- temporarily impaired		Not other-than- temporarily impaired			Other-than- temporarily impaired		Fair value
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	5,439	$	647	$	—	$	(50	)	$	—	$	6,036
State and political subdivisions		2,515		182		—		(50	)		—		2,647
Non-U.S. government (1)		2,024		101		—		(18	)		—		2,107
U.S. corporate:
Utilities		4,137		454		—		(41	)		—		4,550
Energy		2,167		157		—		(24	)		—		2,300
Finance and insurance		5,719		424		—		(46	)		—		6,097
Consumer—non-cyclical		4,335		433		—		(34	)		—		4,734
Technology and communications		2,473		157		—		(32	)		—		2,598
Industrial		1,161		76		—		(14	)		—		1,223
Capital goods		2,043		228		—		(13	)		—		2,258
Consumer—cyclical		1,455		92		—		(17	)		—		1,530
Transportation		1,121		86		—		(17	)		—		1,190
Other		332		17		—		(1	)		—		348
Total U.S. corporate (1)		24,943		2,124		—		(239	)		—		26,828
Non-U.S. corporate:
Utilities		940		40		—		(11	)		—		969
Energy		1,234		109		—		(12	)		—		1,331
Finance and insurance		2,413		134		—		(9	)		—		2,538
Consumer—non-cyclical		711		17		—		(14	)		—		714
Technology and communications		953		44		—		(10	)		—		987
Industrial		928		39		—		(9	)		—		958
Capital goods		518		21		—		(4	)		—		535
Consumer—cyclical		434		10		—		(2	)		—		442
Transportation		619		65		—		(7	)		—		677
Other		2,967		190		—		(13	)		—		3,144
Total non-U.S. corporate (1)		11,717		669		—		(91	)		—		12,295
Residential mortgage-backed (2)		4,122		259		10		(12	)		—		4,379
Commercial mortgage-backed		3,084		98		3		(56	)		—		3,129
Other asset-backed (2)		3,170		15		1		(35	)		—		3,151
Total fixed maturity securities		57,014		4,095		14		(551	)		—		60,572
Equity securities		628		31		—		(27	)		—		632
Total available-for-sale securities	$	57,642	$	4,126	$	14	$	(578	)	$	—	$	61,204

⁽¹⁾ Fair value included European periphery exposure of $447 million in Ireland, $231 million in Spain, $95 million in Italy and $16 million in Portugal.

⁽²⁾ Fair value included $43 million collateralized by Alt-A residential mortgage loans and $26 million collateralized by sub-prime residential mortgage loans.

Fixed maturity securities increased $2.0 billion, compared to December 31, 2016, principally from higher net unrealized gains attributable to a decrease in treasury yields as well as changes in foreign exchange rates from the weakening of the U.S. dollar in the current year.

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Our exposure in peripheral European countries consists of fixed maturity securities in Portugal, Ireland, Italy and Spain. Investments in these countries are primarily made to diversify our U.S. corporate fixed maturity securities with European bonds denominated in U.S. dollars. During the nine months ended September 30, 2017, our exposure to the peripheral European countries increased by $154 million to $943 million with unrealized gains of $72 million. Our exposure as of September 30, 2017 was diversified with direct exposure to local economies of $199 million, indirect exposure through debt issued by subsidiaries outside of the European periphery of $141 million and exposure to multinational companies where the majority of revenues come from outside of the country of domicile of $603 million.

Commercial mortgage loans

The following tables set forth additional information regarding our commercial mortgage loans as of the dates indicated:

	September 30, 2017
(Dollar amounts in millions)	Total recorded investment		Number of loans		Loan-to-value  (1)			Delinquent principal balance		Number of delinquent loans
Loan Year
2004 and prior	$	457		266		28	%	$	—		—
2005		428		128		41	%		6		1
2006		392		101		47	%		—		—
2007		314		81		49	%		—		—
2008		131		25		51	%		—		—
2009		—		—		—	%		—		—
2010		77		15		42	%		—		—
2011		208		47		43	%		—		—
2012		564		85		45	%		—		—
2013		740		132		49	%		—		—
2014		848		141		54	%		—		—
2015		913		142		62	%		—		—
2016		605		100		61	%		—		—
2017		604		108		68	%		—		—
Total	$	6,281		1,371		52	%	$	6		1

⁽¹⁾ Represents weighted-average loan-to-value as of September 30, 2017.

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	December 31, 2016
(Dollar amounts in millions)	Total recorded investment		Number of loans		Loan-to-value  (1)			Delinquent principal balance		Number of delinquent loans
Loan Year
2004 and prior	$	521		304		31	%	$	—		—
2005		469		135		43	%		—		—
2006		434		105		52	%		15		1
2007		452		126		54	%		1		1
2008		135		25		54	%		—		—
2009		—		—		—	%		—		—
2010		89		17		48	%		—		—
2011		215		47		47	%		—		—
2012		588		88		52	%		—		—
2013		781		136		54	%		—		—
2014		892		147		61	%		—		—
2015		932		143		65	%		—		—
2016		617		100		69	%		—		—
Total	$	6,125		1,373		55	%	$	16		2

⁽¹⁾ Represents weighted-average loan-to-value as of December 31, 2016.

Other invested assets

The following table sets forth the carrying values of our other invested assets as of the dates indicated:

	September 30, 2017					December 31, 2016
(Amounts in millions)	Carrying value		% of total			Carrying value		% of total
Short-term investments	$	787		49	%	$	352		17	%
Derivatives		261		16			708		34
Limited partnerships		244		15			199		10
Securities lending collateral		237		15			534		25
Trading securities		—		—			259		13
Other investments		61		5			19		1
Total other invested assets	$	1,590		100	%	$	2,071		100	%

Derivatives decreased primarily attributable to recent central clearing parties rule changes impacting our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. Securities lending collateral decreased driven by market demand. Our investments in trading securities decreased from higher net sales. Short-term investments increased principally from higher net purchases in our Australia Mortgage Insurance and U.S. Life Insurance segments in the current year.

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Derivatives

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

(Notional in millions)	Measurement		December 31, 2016		Additions		Maturities/ terminations			September 30, 2017
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps		Notional	$	11,570	$	—	$	(306	)	$	11,264
Foreign currency swaps		Notional		22		—		—			22
Total cash flow hedges				11,592		—		(306	)		11,286
Total derivatives designated as hedges				11,592		—		(306	)		11,286
Derivatives not designated as hedges
Interest rate swaps		Notional		4,679		—		—			4,679
Foreign currency swaps		Notional		201		95		(14	)		282
Credit default swaps		Notional		39		—		—			39
Credit default swaps related to securitization entities		Notional		312		—		(200	)		112
Equity index options		Notional		2,396		1,584		(1,484	)		2,496
Financial futures		Notional		1,398		4,300		(4,376	)		1,322
Equity return swaps		Notional		165		186		(258	)		93
Other foreign currency contracts		Notional		3,130		2,163		(691	)		4,602
Total derivatives not designated as hedges				12,320		8,328		(7,023	)		13,625
Total derivatives			$	23,912	$	8,328	$	(7,329	)	$	24,911
(Number of policies)	Measurement		December 31, 2016		Additions		Maturities/ terminations			September 30, 2017
Derivatives not designated as hedges
GMWB embedded derivatives		Policies		33,238		—		(2,127	)		31,111
Fixed index annuity embedded derivatives		Policies		17,549		—		(367	)		17,182
Indexed universal life embedded derivatives		Policies		1,074		1		(66	)		1,009

The $1.0 billion increase in the notional value of derivatives was attributable to an increase in our non-qualified foreign currency interest rate swaps related to a non-qualified derivative strategy to mitigate interest rate risk associated with our regulatory capital position.

The number of policies related to our GMWB embedded derivatives decreased as variable annuity products are no longer being offered.

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Consolidated Balance Sheets

Total assets. Total assets decreased $29 million from $104,658 million as of December 31, 2016 to $104,629 million as of September 30, 2017.

• Cash and cash equivalents and invested assets increased $1,587 million primarily from an increase of $1,980 million in fixed maturity securities and an increase of $157 million in commercial mortgage loans. The increase in fixed maturity securities was predominantly related to a decrease in treasury yields and from the weakening of the U.S. dollar compared to the balance sheet rate at December 31, 2016. The increase in equity securities was primarily related to higher unrealized gains on preferred securities and from purchases mostly in our Canada and Australia mortgage insurance businesses. These increases were partially offset by a decrease of $481 million in other invested assets mostly related to derivative assets, securities lending and trading securities. The decrease in derivative assets was principally driven by recent central clearing parties rule changes impacting our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets by $509 million in the third quarter of 2017. The increase was also partially offset by a decrease of $312 million in restricted other invested assets related to securitization entities driven mostly by proceeds from sales and maturities, as we reposition these assets in connection with the maturity of the associated liabilities.

• DAC decreased $1,229 million predominantly related to our long-term care insurance business. We are required to analyze the impacts from net unrealized investment gains and losses on our available-for-sale investment securities backing insurance liabilities, as if those unrealized investment gains and losses were realized. As of September 30, 2017, due primarily to the decline in interest rates increasing unrealized investments gains, we reduced the DAC balance of our long-term care insurance business to zero, a cumulative decrease in the accumulated effect of net unrealized investment (gains) losses of approximately $1.3 billion, with an offsetting amount recorded in other comprehensive income (loss). The decrease was also attributable to lower deferrals driven mostly by lower production in our U.S. Life Insurance segment in the current year. See note 7 in our unaudited condensed consolidated financial statements under “Item 1—Financial Statements” for additional information related to DAC.

• Reinsurance recoverable decreased $202 million mainly attributable to the runoff of our structured settlement products ceded to Union Fidelity Life Insurance Company, an affiliate of our former parent, GE.

• Other assets decreased $121 million principally from lower derivative collateral receivable primarily due to the change described above within other invested assets related to variation margin.

Total liabilities. Total liabilities decreased $649 million from $90,191 million as of December 31, 2016 to $89,542 million as of September 30, 2017.

• Future policy benefits increased $959 million primarily driven by an increase in our long-term care insurance business largely from the aging and growth of the in-force block in the current year. In addition, as discussed above, due primarily to the decline in interest rates increasing unrealized investments gains, we reduced the DAC balance of our long-term care insurance business to zero and established additional reserves of $333 million, with an offsetting amount recorded in other comprehensive income (loss).

• Policyholder account balances decreased $1,131 million largely as a result of surrenders and benefits in our fixed annuities business and from scheduled maturities of certain institutional products in the current year.

• Other liabilities decreased $914 million largely driven by lower securities lending liabilities and derivative counterparty collateral as a result of changes in the interest rate environment, along with

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lower derivative liabilities primarily from the change described above within other invested assets related to variation margin, which reduced our derivative liabilities by $274 million. The decrease was also attributable to lower tax liabilities principally related to our Tax Matters Agreement liability in the current year. These decreases were partially offset by an increase in amounts due to broker mostly related to unsettled trade activity in the current year.

Total equity. Total equity increased $620 million from $14,467 million as of December 31, 2016 to $15,087 million as of September 30, 2017.

• We reported net income available to Genworth Financial, Inc.’s common stockholders of $464 million during the nine months ended September 30, 2017.

• Foreign currency translation and other adjustments increased $128 million principally from the weakening of the U.S. dollar compared to the currencies in Canada and Australia in the current year.

• Noncontrolling interests increased $195 million predominantly related to net income attributable to noncontrolling interest of $198 million and foreign currency translation adjustments of $133 million, partially offset by dividends to noncontrolling interests of $92 million and from the repurchase of shares of $31 million in the current year.

Liquidity and Capital Resources

Liquidity and capital resources represent our overall financial strength and our ability to generate cash flows from our businesses, borrow funds at competitive rates and raise new capital to meet our operating and growth needs.

Genworth and subsidiaries

The following table sets forth our unaudited condensed consolidated cash flows for the nine months ended September 30:

(Amounts in millions)	2017			2016
Net cash from operating activities	$	1,932		$	1,798
Net cash used by investing activities		(678	)		(2,050	)
Net cash used by financing activities		(1,270	)		(2,699	)
Net decrease in cash before foreign exchange effect	$	(16	)	$	(2,951	)

Our principal sources of cash include sales of our products and services, income from our investment portfolio and proceeds from sales of investments. As an insurance business, we typically generate positive cash flows from operating activities, as premiums collected from our insurance products and income received from our investments exceed policy acquisition costs, benefits paid, redemptions and operating expenses. Our cash flows from operating activities are affected by the timing of premiums, fees and investment income received and benefits and expenses paid. Positive cash flows from operating activities are then invested to support the obligations of our insurance and investment products and required capital supporting these products. In analyzing our cash flow, we focus on the change in the amount of cash available and used in investing activities. Changes in cash from financing activities primarily relate to the issuance of, and redemptions and benefit payments on, universal life insurance and investment contracts; the issuance and acquisition of debt and equity securities; the issuance and repayment or repurchase of borrowings and non-recourse funding obligations; and other capital transactions.

We had higher cash inflows from operating activities during the current year mainly attributable to higher net sales of trading securities as well as higher amounts paid in the prior year related to a reinsurance agreement in our life insurance business that did not recur. These amounts were partially offset by cash outflows in the current year compared to cash inflows in the prior year as a result of the change in collateral related to derivative positions.

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We had lower cash outflows from investing activities primarily from lower purchases and higher maturities of fixed maturity securities in the current year. These amounts were partially offset by lower sales of fixed maturity securities as well as higher net purchases of short-term investments primarily from the decision to manage the interest rate risk and reposition our portfolios, particularly in our Australian mortgage insurance business in the current year.

We had lower cash outflows from financing activities during the current year primarily from prior year transactions that did not recur, consisting of the redemption of $1,620 million of non-recourse funding obligations and the repayment and repurchase of $326 million of Genworth Holdings’ senior notes, partially offset by higher net withdrawals from our investment contracts in the current year.

In the United States and Canada, we engage in certain securities lending transactions for the purpose of enhancing the yield on our investment securities portfolio. We maintain effective control over all loaned securities and, therefore, continue to report such securities as fixed maturity securities on the consolidated balance sheets. We are currently indemnified against counterparty credit risk by the intermediary.

We previously had a repurchase program in which we sold an investment security at a specified price and agreed to repurchase that security at another specified price at a later date. In 2017 we repaid $75 million, the entire amount due at maturity related to these repurchase agreements.

Genworth—holding company

Genworth Financial and Genworth Holdings each acts as a holding company for their respective subsidiaries and do not have any significant operations of their own. Dividends from their respective subsidiaries, payments to them under tax sharing and expense reimbursement arrangements with their subsidiaries and proceeds from borrowings or securities issuances are their principal sources of cash to meet their obligations. Insurance laws and regulations regulate the payment of dividends and other distributions to Genworth Financial and Genworth Holdings by their insurance subsidiaries. We expect dividends paid by the insurance subsidiaries will vary depending on strategic objectives, regulatory requirements and business performance.

The primary uses of funds at Genworth Financial and Genworth Holdings include payment of holding company general operating expenses (including taxes), payment of principal, interest and other expenses on current and any future borrowings, payments under current and any future guarantees (including guarantees of certain subsidiary obligations), payment of amounts owed to GE under the Tax Matters Agreement, payments to subsidiaries (and, in the case of Genworth Holdings, to Genworth Financial) under tax sharing agreements, contributions to subsidiaries, repurchases of debt securities and, in the case of Genworth Holdings, loans, dividends or other distributions to Genworth Financial. In deploying future capital, important current priorities include focusing on our operating businesses so they remain appropriately capitalized, and accelerating progress on reducing overall indebtedness of Genworth Holdings. We may from time to time seek to repurchase or redeem outstanding notes for cash (with cash on hand, proceeds from the issuance of new debt and/or the proceeds from asset or stock sales) in open market purchases, tender offers, privately negotiated transactions or otherwise. We currently seek to reduce our indebtedness over time through repurchases, redemptions and/or repayments at maturity.

Our Board of Directors has suspended the payment of stockholder dividends on our Genworth Financial common stock indefinitely. The declaration and payment of future dividends to holders of our common stock will be at the discretion of our Board of Directors and will be dependent on many factors including the receipt of dividends from our operating subsidiaries, our financial condition and operating results, the capital requirements of our subsidiaries, legal requirements, regulatory constraints, our credit and financial strength ratings and such other factors as the Board of Directors deems relevant. In addition, our Board of Directors has suspended repurchases of our Genworth Financial common stock under our stock repurchase program indefinitely. The resumption of our stock repurchase program will be at the discretion of our Board of Directors.

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Genworth Holdings had $754 million and $998 million of cash and cash equivalents, which included approximately $52 million and $85 million of restricted assets, comprised primarily of cash and cash equivalents, as of September 30, 2017 and December 31, 2016, respectively. Genworth Holdings also held $75 million and $100 million in U.S. government securities as of September 30, 2017 and December 31, 2016, respectively.

During the nine months ended September 30, 2017 and 2016, we received common stock dividends from our international subsidiaries of $119 million and $250 million, respectively. Dividends in 2017 included $16 million from our participation in the share buyback programs in Genworth Mortgage Insurance Australia Limited (“Genworth Australia”) and Genworth Canada, as discussed below. Dividends in 2016 included $76 million for our portion of the AUD$202 million capital reduction in Genworth Australia in the second quarter of 2016.

Regulated insurance subsidiaries

The liquidity requirements of our regulated insurance subsidiaries principally relate to the liabilities associated with their various insurance and investment products, operating costs and expenses, the payment of dividends to us, contributions to their subsidiaries, payment of principal and interest on their outstanding debt obligations and income taxes. Liabilities arising from insurance and investment products include the payment of benefits, as well as cash payments in connection with policy surrenders and withdrawals, policy loans and obligations to redeem funding agreements.

Our insurance subsidiaries have used cash flows from operations and investment activities to fund their liquidity requirements. Our insurance subsidiaries’ principal cash inflows from operating activities are derived from premiums, annuity deposits and insurance and investment product fees and other income, including commissions, cost of insurance, mortality, expense and surrender charges, contract underwriting fees, investment management fees and dividends and distributions from their subsidiaries. The principal cash inflows from investment activities result from repayments of principal, investment income and, as necessary, sales of invested assets.

Our insurance subsidiaries maintain investment strategies intended to provide adequate funds to pay benefits without forced sales of investments. Products having liabilities with longer durations, such as certain life insurance and long-term care insurance policies, are matched with investments having similar duration such as long-term fixed maturity securities and commercial mortgage loans. Shorter-term liabilities are matched with fixed maturity securities that have short- and medium-term fixed maturities. In addition, our insurance subsidiaries hold highly liquid, high quality short-term investment securities and other liquid investment grade fixed maturity securities to fund anticipated operating expenses, surrenders and withdrawals. As of September 30, 2017, our total cash, cash equivalents and invested assets were $75.9 billion. Our investments in privately placed fixed maturity securities, commercial mortgage loans, policy loans, limited partnership investments and select mortgage-backed and asset-backed securities are relatively illiquid. These asset classes represented approximately 33% of the carrying value of our total cash, cash equivalents and invested assets as of September 30, 2017.

Effective December 31, 2015, each GSE adopted revised PMIERs, which set forth operational and financial requirements that mortgage insurers must meet in order to remain eligible. Each approved mortgage insurer is required to provide the GSEs with an annual certification and a quarterly report as to its compliance with PMIERs. The reinsurance transactions covering our 2014 through 2017 book years provided an aggregate of approximately $510 million of PMIERs capital credit as of September 30, 2017. Our U.S. mortgage insurance business may execute future capital transactions to maintain a prudent level of financial flexibility in excess of the PMIERs capital requirements given the dynamic nature of asset valuations and requirement changes over time. These future capital transactions could include additional reinsurance transactions and contributions of holding company cash.

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In August 2017, Genworth Australia announced its intention to commence an on-market share buy-back program for shares up to a maximum aggregate amount of AUD$100 million. The total number of shares to be purchased by Genworth Australia under the program depends on business and market conditions, the prevailing share price, market volumes and other considerations. Pursuant to the program, in August 2017 and September 2017, Genworth Australia repurchased approximately 15.1 million of its shares for AUD$45 million. As the majority shareholder, we participated in on-market sales transactions during the buy-back period to maintain our ownership position of approximately 52.0% and received $18 million in cash. Of the $18 million of cash proceeds received, $4 million was paid as a dividend to Genworth Holdings in the third quarter of 2017 and we expect the remaining amount of $14 million to be paid to Genworth Holdings as a dividend in the fourth quarter of 2017.

In May 2017, Genworth Canada announced acceptance by the Toronto Stock Exchange of its Notice of Intention to Make a Normal Course Issuer Bid (“NCIB”). Pursuant to the NCIB, Genworth Canada may, if considered advisable, purchase from time to time through May 4, 2018, up to an aggregate of approximately 4.6 million of its issued and outstanding common shares. In August 2017 and September 2017, Genworth Canada repurchased approximately 1.1 million of its shares for CAD$40 million through the NCIB. We participated in the NCIB in order to maintain our ownership position at its current level of approximately 57.1% and received $18 million in cash. Of the $18 million of cash proceeds received, $12 million was paid as dividends to Genworth Holdings in the third quarter of 2017 and $6 million was retained by GMICO.

Capital resources and financing activities

On September 29, 2017, Genworth Canada, our majority-owned subsidiary, entered into a CAD$200 million syndicated senior unsecured revolving credit facility, which matures on September 29, 2022. Any borrowings under Genworth Canada’s credit facility will bear interest at a rate per annum equal to, at the option of Genworth Canada, either a fixed rate or a variable rate pursuant to the terms of the credit agreement. The credit facility includes customary representations, warranties, covenants, terms and conditions. This syndicated credit facility replaced an existing CAD$100 million senior unsecured revolving credit facility which was cancelled on September 29, 2017. As of September 30, 2017, there was no amount outstanding under Genworth Canada’s credit facility and all of the covenants were fully met.

We believe existing cash held at Genworth Holdings combined with dividends from operating subsidiaries, payments under tax sharing and expense reimbursement arrangements with subsidiaries, proceeds from borrowings or securities issuances, and if necessary, sales of assets, as described below, will provide us with sufficient capital flexibility and liquidity to meet our projected future operating and financing requirements. We actively monitor our liquidity position, liquidity generation options and the credit markets given changing market conditions. We target liquidity at Genworth Holdings to maintain a minimum balance of one and one-half times expected annual debt interest payments plus an additional $350 million. As of September 30, 2017, Genworth Holdings was above this target due in part to intercompany tax payments of approximately $300 million received from its subsidiaries in 2016. Subject to the completion of the China Oceanwide transaction, China Oceanwide has committed in the Merger Agreement to contribute $600 million of cash to us to address our debt maturing in May 2018, on or before its maturity. We will continue to evaluate our target level of liquidity as circumstances warrant and may move above or below the target for a period of time given future actions and due to the timing of cash inflows and outflows. Additionally, we will continue to evaluate market influences on the valuation of our senior debt, and may consider additional opportunities to repurchase our debt over time. We cannot predict with any certainty the impact to us from any future disruptions in the credit markets or the recent or any further downgrades by one or more of the rating agencies of the financial strength ratings of our insurance company subsidiaries and/or the credit ratings of our holding companies. We are currently reviewing potential refinancing options, which may include secured indebtedness, to address upcoming debt maturities in the event the transaction with China Oceanwide cannot be completed in a timely manner or at all. We could also utilize holding company cash and/or pursue potential asset sales to address upcoming debt maturities in the event the transaction with China Oceanwide cannot be completed. In the absence of the transaction with China Oceanwide or a refinancing alternative, we believe we would need to pursue asset sales to address our debt maturities, including potential sales of our mortgage insurance businesses in

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Canada and/or Australia. We are also evaluating options to insulate our U.S. mortgage insurance business from additional ratings pressure, including a potential partial sale, in the event the transaction with China Oceanwide cannot be completed. The availability of additional funding will depend on a variety of factors such as market conditions, regulatory considerations, the general availability of credit, the overall availability of credit to the financial services industry, the level of activity and availability of reinsurance, our credit ratings and credit capacity and the performance of and outlook for our business. For a discussion of certain risks associated with our liquidity, see “Item 1A—Risk Factors)—Our internal sources of liquidity may be insufficient to meet our needs and our access to capital may be limited or unavailable. Under such conditions, we may seek additional capital but may be unable to obtain it” in our 2016 Annual Report on Form 10-K.

Contractual obligations and commercial commitments

Except as disclosed above, there have been no material additions or changes to our contractual obligations and commercial commitments as set forth in our 2016 Annual Report on Form 10-K filed on February 27, 2017.

Securitization Entities

There were no off-balance sheet securitization transactions during the nine months ended September 30, 2017 or 2016.

New Accounting Standards

For a discussion of recently adopted accounting standards, see note 2 in our consolidated financial statements under “Item 1—Financial Statements.”

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of the loss of fair value resulting from adverse changes in market rates and prices, such as interest rates, foreign currency exchange rates and equity prices. Market risk is directly influenced by the volatility and liquidity in the markets in which the related underlying financial instruments are traded. Except as disclosed below, there were no other material changes in our market risks since December 31, 2016.

Interest rates remain at historically low levels despite the fact the U.S. Federal Reserve has raised its benchmark lending rate two times in 2017 and market expectations remain for an additional rate increase during 2017. Despite the Federal Reserve’s actions, U.S. Treasury yields were lower throughout the third quarter of 2017 but rose significantly in the last week of September 2017, in response to potential tax reform. However, pro-growth stimulus policies are still uncertain and weaker inflation data has investors more cautious on the direction of longer term interest rates. See “—Business trends and conditions” and “—Investments and Derivative Instruments” in “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further discussion of recent market conditions.

We are exposed to foreign currency exchange risks associated with fluctuations in foreign currency exchange rates against the U.S. dollar resulting from our international operations and non-U.S.-denominated securities. Our primary international operations are located in Canada and Australia. The assets and liabilities of our international operations are translated into U.S. dollars at the exchange rates in effect at the balance sheet date, while revenues and expenses of our international operations are translated into U.S. dollars at the average rates of exchange during the period of the transaction. In general, the weakening of the U.S. dollar results in higher levels of reported assets, liabilities, revenues and net income (loss). As of September 30, 2017, the U.S. dollar weakened against the currencies in Canada and Australia compared to the balance sheet rate as of December 31, 2016. In the third quarter of 2017, the U.S. dollar weakened against the currencies in Canada and Australia compared to the average rate in the third quarter of 2016. See “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further discussion on the impact of changes in foreign currency exchange rates.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of September 30, 2017, an evaluation was conducted under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2017.

Changes in Internal Control Over Financial Reporting During the Quarter Ended September 30, 2017

During the three months ended September 30, 2017, there have not been any changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

See note 11 in our unaudited condensed consolidated financial statements under “Part 1—Item 1—Financial Statements” for a description of material pending litigation and regulatory matters affecting us.

Item 1A. Risk Factors

The discussion of our business and operations should be read together with the risk factors contained in Item 1A of our 2016 Annual Report on Form 10-K, which together describe various risks and uncertainties to which we are or may become subject. These risks and uncertainties have the potential to affect our business, financial condition, results of operations, cash flows, strategies or prospects in a material and adverse manner. There have been no material changes to the risk factors set forth in the above-referenced filing as of September 30, 2017.

174

Item 6. Exhibits

Number	Description
2.1	Waiver and Agreement, dated as of August  21, 2017, among Genworth Financial, Inc., Asia Pacific Global Capital Co., Ltd., and Asia Pacific Global Capital USA Corporation (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on August 21, 2017)
12	Statement of Ratio of Income to Fixed Charges (filed herewith)
31.1	Certification of Thomas J. McInerney (filed herewith)
31.2	Certification of Kelly L. Groh (filed herewith)
32.1	Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code—Thomas J. McInerney (filed herewith)
32.2	Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code—Kelly L. Groh (filed herewith)
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

175

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GENWORTH FINANCIAL, INC. (Registrant)
Date: November 3, 2017
	By:	/S/    Matthew D. Farney
		Matthew D. Farney Vice President and Controller (Principal Accounting Officer)

176

EX-12

Exhibit 12

Genworth Financial, Inc.

Statement of Ratio of Income to Fixed Charges

(Dollar amounts in millions)

	Nine months ended September 30, 2017		Years ended December 31,
			2016		2015			2014			2013		2012
Income (loss) from continuing operations before income taxes and accounting changes	$	1,019	$	320	$	(15	)	$	(1,299	)	$	993	$	645
Less: income attributable to noncontrolling interests before income taxes		272		289		259			262			210		270
Income (loss) from continuing operations before income taxes and accounting changes and excluding income attributable to noncontrolling interests	$	747	$	31	$	(274	)	$	(1,561	)	$	783	$	375
Fixed charges included in income (loss) from continuing operations:
Interest expense	$	201	$	324	$	407		$	418		$	440	$	422
Interest portion of rental expense		4		6		6			8			8		9
Subtotal		205		330		413			426			448		431
Interest credited to investment contractholders		494		696		720			737			738		775
Total fixed charges from continuing operations	$	699	$	1,026	$	1,133		$	1,163		$	1,186	$	1,206
Income (loss) from continuing operations available for fixed charges (including interest credited to investment contractholders)	$	1,446	$	1,057	$	859		$	(398	)	$	1,969	$	1,581
Ratio of income (loss) from continuing operations available for fixed charges to fixed charges from continuing operations (including interest credited to investment contractholders)		2.07		1.03		0.76			(0.34	)		1.66		1.31
Income (loss) from continuing operations available for fixed charges (excluding interest credited to investment contractholders)	$	952	$	361	$	139		$	(1,135	)	$	1,231	$	806
Ratio of income (loss) from continuing operations available for fixed charges to fixed charges from continuing operations (excluding interest credited to investment contractholders)		4.64		1.09		0.34			(2.66	)		2.75		1.87

For the years ended December 31, 2015 and 2014, our deficiency in income necessary to cover fixed charges was $274 million and $1,561 million, respectively.

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Thomas J. McInerney, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Genworth Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 3, 2017

/S/ Thomas J. McInerney

Thomas J. McInerney

President and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Kelly L. Groh, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Genworth Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 3, 2017

/S/ Kelly L. Groh

Kelly L. Groh

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

(AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

I, Thomas J. McInerney, as President and Chief Executive Officer of Genworth Financial, Inc. (the “Company”), certify, pursuant to 18 U.S.C. Section 1350 (as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002), that to my knowledge:

(1) the accompanying Quarterly Report on Form 10-Q of the Company for the nine months ended September 30, 2017 (the “Report”), filed with the U.S. Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 3, 2017

/s/ Thomas J. McInerney

Thomas J. McInerney

President and Chief Executive Officer

(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

(AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

I, Kelly L. Groh, as Executive Vice President and Chief Financial Officer of Genworth Financial, Inc. (the “Company”), certify, pursuant to 18 U.S.C. Section 1350 (as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002), that to my knowledge:

(1) the accompanying Quarterly Report on Form 10-Q of the Company for the nine months ended September 30, 2017 (the “Report”), filed with the U.S. Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 3, 2017

/s/ Kelly L. Groh

Kelly L. Groh

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 26, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	GNW
Entity Registrant Name	GENWORTH FINANCIAL INC
Entity Central Index Key	0001276520
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		499,158,848

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Assets
Fixed maturity securities available-for-sale, at fair value	$ 62,552	$ 60,572
Equity securities available-for-sale, at fair value	765	632
Commercial mortgage loans	6,268	6,111
Restricted commercial mortgage loans related to securitization entities	111	129
Policy loans	1,818	1,742
Other invested assets	1,590	2,071
Restricted other invested assets related to securitization entities, at fair value	0	312
Total investments	73,104	71,569
Cash and cash equivalents	2,836	2,784
Accrued investment income	639	659
Deferred acquisition costs	2,342	3,571
Intangible assets and goodwill	315	348
Reinsurance recoverable	17,553	17,755
Other assets	552	673
Deferred tax asset	24	0
Separate account assets	7,264	7,299
Total assets	104,629	104,658
Liabilities and equity
Future policy benefits	38,022	37,063
Policyholder account balances	24,531	25,662
Liability for policy and contract claims	9,384	9,256
Unearned premiums	3,512	3,378
Other liabilities ($1 of other liabilities are related to securitization entities in each period)	2,002	2,916
Borrowings related to securitization entities ($12 are carried at fair value in each period)	59	74
Non-recourse funding obligations	310	310
Long-term borrowings	4,224	4,180
Deferred tax liability	234	53
Separate account liabilities	7,264	7,299
Total liabilities	89,542	90,191
Commitments and contingencies
Equity:
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 588 million and 587 million shares issued as of September 30, 2017 and December 31, 2016, respectively; 499 million and 498 million shares outstanding as of September 30, 2017 and December 31, 2016, respectively	1	1
Additional paid-in capital	11,973	11,962
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired	1,098	1,253
Net unrealized gains (losses) on other-than-temporarily impaired securities	10	9
Net unrealized investment gains (losses)	1,108	1,262
Derivatives qualifying as hedges	2,052	2,085
Foreign currency translation and other adjustments	(125)	(253)
Total accumulated other comprehensive income (loss)	3,035	3,094
Retained earnings	760	287
Treasury stock, at cost (88 million shares as of September 30, 2017 and December 31, 2016)	(2,700)	(2,700)
Total Genworth Financial, Inc.'s stockholders' equity	13,069	12,644
Noncontrolling interests	2,018	1,823
Total equity	15,087	14,467
Total liabilities and equity	$ 104,629	$ 104,658

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Other liabilities, securitization entities	$ 1	$ 1
Borrowings related to securitization entities, fair value	$ 12	$ 12
Class A common stock, par value	$ 0.001	$ 0.001
Class A common stock, shares authorized	1,500,000,000	1,500,000,000
Class A common stock, shares issued	588,000,000	587,000,000
Class A common stock, shares outstanding	499,000,000	498,000,000
Treasury stock, shares	88,000,000	88,000,000

XML

Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Premiums		$ 1,135	$ 1,108	$ 3,382	$ 3,029
Net investment income		797	805	2,388	2,373
Net investment gains (losses)		85	20	220	31
Policy fees and other income		198	217	619	738
Total revenues		2,215	2,150	6,609	6,171
Benefits and expenses:
Benefits and other changes in policy reserves		1,344	1,662	3,796	3,715
Interest credited		164	173	494	523
Acquisition and operating expenses, net of deferrals		265	269	775	990
Amortization of deferred acquisition costs and intangibles		83	94	316	305
Interest expense		73	77	209	262
Total benefits and expenses		1,929	2,275	5,590	5,795
Income (loss) from continuing operations before income taxes		286	(125)	1,019	376
Provision for income taxes		102	222	348	355
Income (loss) from continuing operations		184	(347)	671	21
Income (loss) from discontinued operations, net of taxes		(9)	15	(9)	(25)
Net income (loss)		175	(332)	662	(4)
Less: net income attributable to noncontrolling interests		68	48	198	151
Net income (loss) available to Genworth Financial, Inc.'s common stockholders		$ 107	$ (380)	$ 464	$ (155)
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share:
Basic		$ 0.23	$ (0.79)	$ 0.95	$ (0.26)
Diluted		0.23	(0.79)	0.94	(0.26)
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share:
Basic		0.21	(0.76)	0.93	(0.31)
Diluted		$ 0.21	$ (0.76)	$ 0.93	$ (0.31)
Weighted-average common shares outstanding:
Basic		499.1	498.3	498.9	498.3
Diluted	[1]	501.6	498.3	501.2	498.3
Supplemental disclosures:
Total other-than-temporary impairments		$ (1)	$ (2)	$ (4)	$ (35)
Portion of other-than-temporary impairments included in other comprehensive income (loss)		0	0	0	0
Net other-than-temporary impairments		(1)	(2)	(4)	(35)
Other investments gains (losses)		86	22	224	66
Net investment gains (losses)		$ 85	$ 20	$ 220	$ 31

[1] Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the three months and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively.

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income (loss)	$ 175	$ (332)	$ 662	$ (4)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired	(89)	72	(173)	1,624
Net unrealized gains (losses) on other-than-temporarily impaired securities	0	5	1	6
Derivatives qualifying as hedges	(12)	54	(33)	448
Foreign currency translation and other adjustments	81	(1)	261	223
Total other comprehensive income (loss)	(20)	130	56	2,301
Total comprehensive income (loss)	155	(202)	718	2,297
Less: comprehensive income attributable to noncontrolling interests	108	64	313	260
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders	$ 47	$ (266)	$ 405	$ 2,037

XML

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions	Total	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
Balances at Dec. 31, 2015	$ 14,637	$ 1	$ 11,949	$ 3,010	$ 564	$ (2,700)	$ 12,824	$ 1,813
Return of capital to noncontrolling interests	(70)							(70)
Comprehensive income (loss):
Net income	(4)				(155)		(155)	151
Other comprehensive income (loss) net of taxes	2,301			2,192			2,192	109
Total comprehensive income (loss)	2,297						2,037	260
Dividends to noncontrolling interests	(126)							(126)
Stock-based compensation expense and exercises and other	11		10				10	1
Balances at Sep. 30, 2016	16,749	1	11,959	5,202	409	(2,700)	14,871	1,878
Balances at Jun. 30, 2016				5,088
Comprehensive income (loss):
Net income	(332)
Other comprehensive income (loss) net of taxes	130
Total comprehensive income (loss)	(202)
Balances at Sep. 30, 2016	16,749	1	11,959	5,202	409	(2,700)	14,871	1,878
Balances at Dec. 31, 2016	14,467	1	11,962	3,094	287	(2,700)	12,644	1,823
Cumulative effect of change in accounting, net of taxes	9				9		9
Repurchase of subsidiary shares	(31)							(31)
Comprehensive income (loss):
Net income	662				464		464	198
Other comprehensive income (loss) net of taxes	56			(59)			(59)	115
Total comprehensive income (loss)	718						405	313
Dividends to noncontrolling interests	(92)							(92)
Stock-based compensation expense and exercises and other	16		11				11	5
Balances at Sep. 30, 2017	15,087	1	11,973	3,035	760	(2,700)	13,069	2,018
Balances at Jun. 30, 2017				3,095
Comprehensive income (loss):
Net income	175
Other comprehensive income (loss) net of taxes	(20)
Total comprehensive income (loss)	155
Balances at Sep. 30, 2017	$ 15,087	$ 1	$ 11,973	$ 3,035	$ 760	$ (2,700)	$ 13,069	$ 2,018

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 662	$ (4)
Less loss from discontinued operations, net of taxes	9	25
Adjustments to reconcile net income (loss) to net cash from operating activities:
Gain on sale of business	0	(26)
Amortization of fixed maturity securities discounts and premiums and limited partnerships	(107)	(112)
Net investment gains	(220)	(31)
Charges assessed to policyholders	(534)	(574)
Acquisition costs deferred	(67)	(124)
Amortization of deferred acquisition costs and intangibles	316	305
Deferred income taxes	234	173
Trading securities, held-for-sale investments and derivative instruments	716	759
Stock-based compensation expense	29	25
Change in certain assets and liabilities:
Accrued investment income and other assets	(21)	(258)
Insurance reserves	1,202	691
Current tax liabilities	(27)	44
Other liabilities, policy and contract claims and other policy-related balances	(260)	905
Net cash from operating activities	1,932	1,798
Cash flows used by investing activities:
Fixed maturity securities	3,396	2,646
Commercial mortgage loans	454	555
Restricted commercial mortgage loans related to securitization entities	18	27
Proceeds from sales of investments:
Fixed maturity and equity securities	3,269	4,064
Purchases and originations of investments:
Fixed maturity and equity securities	(6,709)	(8,758)
Commercial mortgage loans	(608)	(405)
Other invested assets, net	(521)	(138)
Policy loans, net	28	(80)
Proceeds from sale of businesses, net of cash transferred	0	39
Payments for business purchased, net of cash acquired	(5)	0
Net cash used by investing activities	(678)	(2,050)
Cash flows used by financing activities:
Deposits to universal life and investment contracts	902	1,028
Withdrawals from universal life and investment contracts	(2,003)	(1,463)
Redemption of non-recourse funding obligations	0	(1,620)
Repayment and repurchase of long-term debt	0	(362)
Repayment of borrowings related to securitization entities	(16)	(37)
Repurchase of subsidiary shares	(31)	0
Return of capital to noncontrolling interests	0	(70)
Dividends paid to noncontrolling interests	(92)	(126)
Other, net	(30)	(49)
Net cash used by financing activities	(1,270)	(2,699)
Effect of exchange rate changes on cash and cash equivalents	68	36
Net change in cash and cash equivalents	52	(2,915)
Cash and cash equivalents at beginning of period	2,784	5,993
Cash and cash equivalents at end of period	$ 2,836	$ 3,078

XML

Formation of Genworth and Basis of Presentation

9 Months Ended

Sep. 30, 2017

Formation of Genworth and Basis of Presentation

(1) Formation of Genworth 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 (“IPO”) of Genworth’s 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.

On October 21, 2016, Genworth Financial entered into an agreement and plan of merger (the “Merger Agreement”) with Asia Pacific Global Capital Co., Ltd. (“the Parent”), a limited liability company incorporated in the People’s Republic of China, and Asia Pacific Global Capital USA Corporation (“Merger Sub”), a Delaware corporation and an indirect, wholly-owned subsidiary of the Parent. Subject to the terms and conditions of the Merger Agreement, including the satisfaction or waiver of certain conditions, Merger Sub would merge with and into Genworth Financial with Genworth Financial surviving the merger as an indirect, wholly-owned subsidiary of the Parent. The Parent is a newly formed subsidiary of China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, “China Oceanwide”). China Oceanwide has agreed to acquire all of our outstanding common stock for a total transaction value of approximately $2.7 billion, or $5.43 per share in cash. At a special meeting held on March 7, 2017, Genworth’s stockholders voted on and approved a proposal to adopt the Merger Agreement.

The transaction remains subject to closing conditions, including the receipt of required regulatory approvals in the U.S., China, and other international jurisdictions. Both parties are engaging with the relevant regulators regarding the applications and the pending transaction.

The accompanying unaudited condensed financial statements include on a consolidated basis the accounts of Genworth Financial and the affiliate companies in which it holds a majority voting interest or where it is the primary beneficiary of a variable interest entity (“VIE”). All intercompany accounts and transactions have been eliminated in consolidation.

References to “Genworth,” the “Company,” “we” or “our” in the accompanying unaudited condensed consolidated financial statements and these notes thereto are, unless the context otherwise requires, to Genworth Financial on a consolidated basis.

We operate our business through the following five operating segments:

• U.S. Mortgage Insurance. In the United States, we offer mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans (“flow mortgage insurance”). We selectively provide mortgage insurance on a bulk basis (“bulk mortgage insurance”) with essentially all of our bulk writings being prime-based.

• Canada Mortgage Insurance. We offer flow mortgage insurance and also provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk in Canada.

• Australia Mortgage Insurance. In Australia, we offer flow mortgage insurance and selectively provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk.

• U.S. Life Insurance. We offer long-term care insurance products as well as service traditional life insurance and fixed annuity products in the United States.

• Runoff. The Runoff segment includes the results of non-strategic products which have not been actively sold but we continue to service our existing blocks of business. Our non-strategic products primarily include our variable annuity, variable life insurance, institutional, corporate-owned life insurance and other accident and health insurance products. Institutional products consist of: funding agreements, funding agreements backing notes and guaranteed investment contracts.

In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations.

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 (“SEC”). 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 2016 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation.

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Accounting Changes

9 Months Ended

Sep. 30, 2017

Accounting Changes

(2) Accounting Changes

Accounting Pronouncements Recently Adopted

On January 1, 2017, we adopted new accounting guidance related to the accounting for stock compensation. The guidance primarily simplifies the accounting for employee share-based payment transactions, including a new requirement to record all of the income tax effects at settlement or expiration through the income statement, classifications of awards as either equity or liabilities, and classification on the statement of cash flows. We adopted this new accounting guidance on a modified retrospective basis and recorded a previously disallowed deferred tax asset of $9 million with a corresponding increase to cumulative effect of change in accounting within retained earnings at adoption.

On January 1, 2017, we adopted new accounting guidance related to transition to the equity method of accounting. The guidance eliminates the retrospective application of the equity method of accounting when obtaining significant influence over a previously held investment. The guidance requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. We did not have any significant impact from this guidance on our consolidated financial statements.

On January 1, 2017, we adopted new accounting guidance related to the assessment of contingent put and call options in debt instruments. The guidance clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. This guidance is consistent with our previous accounting practices and, accordingly, did not have any impact on our consolidated financial statements.

On January 1, 2017, we adopted new accounting guidance related to the effect of derivative contract novations on existing hedge accounting relationships. The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This guidance is consistent with our previous accounting for derivative contract novations and, accordingly, did not have any impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In August 2017, the Financial Accounting Standards Board (“the FASB”) issued new guidance intended to enable entities to better portray the economics of their derivative risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In certain situations, the amendments also simplify the application of hedge accounting. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating adopting this new guidance early and the impact it may have on our consolidated financial statements.

In May 2017, the FASB issued new guidance to clarify when to account for a change to share-based compensation as a modification. The new guidance requires modification accounting only if there are changes to the fair value, vesting conditions or classification, as a liability or equity, of the share-based compensation. The guidance is effective, prospectively, for us on January 1, 2018, accordingly, the guidance will not have any impact at adoption.

In March 2017, the FASB issued new guidance shortening the amortization period for the premium component of callable debt securities purchased at a premium. The guidance requires the premium to be amortized to the earliest call date. This change does not apply to securities held at a discount. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating the impact the guidance may have on our consolidated financial statements.

In February 2017, the FASB issued new guidance to clarify the accounting for gains and losses from the derecognition of nonfinancial assets and accounting for partial sales of nonfinancial assets. The new guidance clarifies when transferring ownership interests in a consolidated subsidiary holding nonfinancial assets is within scope. It also states that the reporting entity should identify each distinct nonfinancial asset and derecognize when a counterparty obtains control, and clarifies the accounting for partial sales. The new guidance is currently effective for us on January 1, 2018. We do not expect any significant impacts from this guidance on our consolidated financial statements.

In January 2017, the FASB issued new guidance simplifying the test for goodwill impairment. The new guidance states goodwill impairment is equal to the difference between the carrying value and fair value of the reporting unit up to the amount of recorded goodwill. The new guidance is currently effective for us on January 1, 2020, with early adoption permitted for testing dates after January 1, 2017. We do not expect any significant impacts from this new guidance on our consolidated financial statements.

In October 2016, the FASB issued new guidance related to the income tax effects of intra-entity transfers of assets other than inventory. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance is currently effective for us on January 1, 2018. We are still in process of evaluating the impact the guidance may have on our consolidated financial statements, including any cumulative effect adjustment that will be recorded directly to retained earnings as of the beginning of the period of adoption.

In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to the current financial instruments accounting primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, will be measured at fair value with changes in fair value recognized in net income (loss). As of September 30, 2017, we have approximately $45 million of cumulative unrealized gains related to equity securities included in accumulated other comprehensive income as well as approximately $25 million of gains related to limited partnership investments currently recorded at cost, that will be reclassed to cumulative effect of change in accounting within retained earnings upon adoption of this new accounting guidance. The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated in combination with other deferred tax assets. This new guidance will be effective for us on January 1, 2018. We are still in process of evaluating the full impact the guidance may have on our consolidated financial statements.

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Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2017

Earnings (Loss) Per Share

(3) Earnings (Loss) Per Share

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions, except per share amounts)	2017			2016			2017			2016
Weighted-average shares used in basic earnings (loss) per share calculations		499.1			498.3			498.9			498.3
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		2.5			—			2.3			—
Weighted-average shares used in diluted earnings (loss) per share calculations (1)		501.6			498.3			501.2			498.3
Income (loss) from continuing operations:
Income (loss) from continuing operations	$	184		$	(347	)	$	671		$	21
Less: income from continuing operations attributable to noncontrolling interests		68			48			198			151
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	116		$	(395	)	$	473		$	(130	)
Basic per share	$	0.23		$	(0.79	)	$	0.95		$	(0.26	)
Diluted per share	$	0.23		$	(0.79	)	$	0.94		$	(0.26	)
Income (loss) from discontinued operations:
Income (loss) from discontinued operations, net of taxes	$	(9	)	$	15		$	(9	)	$	(25	)
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests		—			—			—			—
Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders	$	(9	)	$	15		$	(9	)	$	(25	)
Basic per share	$	(0.02	)	$	0.03		$	(0.02	)	$	(0.05	)
Diluted per share	$	(0.02	)	$	0.03		$	(0.02	)	$	(0.05	)
Net income (loss):
Income (loss) from continuing operations	$	184		$	(347	)	$	671		$	21
Income (loss) from discontinued operations, net of taxes		(9	)		15			(9	)		(25	)
Net income (loss)		175			(332	)		662			(4	)
Less: net income attributable to noncontrolling interests		68			48			198			151
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	107		$	(380	)	$	464		$	(155	)
Basic per share	$	0.21		$	(0.76	)	$	0.93		$	(0.31	)
Diluted per share	$	0.21		$	(0.76	)	$	0.93		$	(0.31	)

⁽¹⁾ Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively.

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Investments

9 Months Ended

Sep. 30, 2017

Investments

(4) Investments

(a) Net Investment Income

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Fixed maturity securities—taxable	$	640		$	655		$	1,930			1,930
Fixed maturity securities—non-taxable		3			3			9			9
Commercial mortgage loans		78			79			231			237
Restricted commercial mortgage loans related to securitization entities		3			3			7			8
Equity securities		9			8			26			20
Other invested assets		39			34			106			105
Restricted other invested assets related to securitization entities		—			—			1			3
Policy loans		39			38			120			107
Cash, cash equivalents and short-term investments		10			5			26			16
Gross investment income before expenses and fees		821			825			2,456			2,435
Expenses and fees		(24	)		(20	)		(68	)		(62	)
Net investment income	$	797		$	805		$	2,388		$	2,373

(b) Net Investment Gains (Losses)

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Available-for-sale securities:
Realized gains	$	40		$	39		$	177		$	205
Realized losses		(10	)		(24	)		(55	)		(75	)
Net realized gains (losses) on available-for-sale securities		30			15			122			130
Impairments:
Total other-than-temporary impairments		(1	)		(2	)		(4	)		(35	)
Portion of other-than-temporary impairments included in other comprehensive income (loss)		—			—			—			—
Net other-than-temporary impairments		(1	)		(2	)		(4	)		(35	)
Trading securities		—			(4	)		1			40
Commercial mortgage loans		1			(1	)		3			1
Net gains (losses) related to securitization entities		1			2			5			(51	)
Derivative instruments (1)		54			10			93			(52	)
Contingent consideration adjustment		—			—			—			(2	)
Net investment gains (losses)	$	85		$	20		$	220		$	31

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

We generally intend to hold securities in unrealized loss positions until they recover. However, from time to time, our intent on an individual security may change, based upon market or other unforeseen developments. In such instances, we sell securities in the ordinary course of managing our portfolio to meet diversification, credit quality, yield and liquidity requirements. If a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we determined that we have the intent to sell the securities or it is more likely than not that we will be required to sell the securities prior to recovery. The aggregate fair value of securities sold at a loss during the three months ended September 30, 2017 and 2016 was $286 million and $293 million, respectively, which was approximately 97% and 95%, respectively, of book value. The aggregate fair value of securities sold at a loss during the nine months ended September 30, 2017 and 2016 was $1,390 million and $833 million, respectively, which was approximately 96% and 93%, respectively, of book value.

The following represents the activity for credit losses recognized in net income (loss) on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (loss) (“OCI”) as of and for the periods indicated:

	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Beginning balance	$	38		$	62		$	42		$	64
Additions:
Other-than-temporary impairments not previously recognized		—			—			—			1
Reductions:
Securities sold, paid down or disposed		(5	)		(8	)		(9	)		(11	)
Ending balance	$	33		$	54		$	33		$	54

(c) Unrealized Investment Gains and Losses

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

(Amounts in millions)	September 30, 2017			December 31, 2016
Net unrealized gains (losses) on investment securities:
Fixed maturity securities	$	4,878		$	3,656
Equity securities		49			12
Subtotal (1)		4,927			3,668
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves		(3,134	)		(1,611	)
Income taxes, net		(619	)		(711	)
Net unrealized investment gains (losses)		1,174			1,346
Less: net unrealized investment gains (losses) attributable to noncontrolling interests		66			84
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.	$	1,108		$	1,262

⁽¹⁾ Excludes foreign exchange.

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:

	As of or for the three months ended September 30,
(Amounts in millions)	2017			2016
Beginning balance	$	1,180		$	2,789
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities		(10	)		228
Adjustment to deferred acquisition costs		(1	)		(17	)
Adjustment to present value of future profits		(3	)		3
Adjustment to sales inducements		—			(6	)
Adjustment to benefit reserves		(92	)		(81	)
Provision for income taxes		36			(41	)
Change in unrealized gains (losses) on investment securities		(70	)		86
Reclassification adjustments to net investment (gains) losses, net of taxes of $10 and $4		(19	)		(9	)
Change in net unrealized investment gains (losses)		(89	)		77
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests		(17	)		6
Ending balance	$	1,108		$	2,860

	As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016
Beginning balance	$	1,262		$	1,254
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities		1,377			3,584
Adjustment to deferred acquisition costs		(1,047	)		(291	)
Adjustment to present value of future profits		(36	)		(26	)
Adjustment to sales inducements		(11	)		(46	)
Adjustment to benefit reserves		(429	)		(612	)
Provision for income taxes		51			(917	)
Change in unrealized gains (losses) on investment securities		(95	)		1,692
Reclassification adjustments to net investment (gains) losses, net of taxes of $41 and $33		(77	)		(62	)
Change in net unrealized investment gains (losses)		(172	)		1,630
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests		(18	)		24
Ending balance	$	1,108		$	2,860

(d) Fixed Maturity and Equity Securities

As of September 30, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

			Gross unrealized gains				Gross unrealized losses
(Amounts in millions)	Amortized cost or cost		Not other-than- temporarily impaired		Other-than- temporarily impaired		Not other-than- temporarily impaired			Other-than- temporarily impaired		Fair value
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	4,893	$	784	$	—	$	(7	)	$	—	$	5,670
State and political subdivisions		2,639		247		—		(26	)		—		2,860
Non-U.S. government		2,143		107		—		(24	)		—		2,226
U.S. corporate:
Utilities		4,382		556		—		(15	)		—		4,923
Energy		2,243		207		—		(10	)		—		2,440
Finance and insurance		6,051		547		—		(11	)		—		6,587
Consumer—non-cyclical		4,330		508		—		(10	)		—		4,828
Technology and communications		2,558		193		—		(11	)		—		2,740
Industrial		1,247		102		—		(3	)		—		1,346
Capital goods		2,067		263		—		(9	)		—		2,321
Consumer—cyclical		1,506		111		—		(6	)		—		1,611
Transportation		1,188		124		—		(6	)		—		1,306
Other		358		24		—		(2	)		—		380
Total U.S. corporate		25,930		2,635		—		(83	)		—		28,482
Non-U.S. corporate:
Utilities		1,022		45		—		(5	)		—		1,062
Energy		1,330		140		—		(7	)		—		1,463
Finance and insurance		2,524		177		—		(5	)		—		2,696
Consumer—non-cyclical		692		27		—		(3	)		—		716
Technology and communications		945		71		—		(2	)		—		1,014
Industrial		979		81		—		(2	)		—		1,058
Capital goods		556		33		—		(2	)		—		587
Consumer—cyclical		518		10		—		(1	)		—		527
Transportation		650		71		—		(3	)		—		718
Other		2,594		193		—		(5	)		—		2,782
Total non-U.S. corporate		11,810		848		—		(35	)		—		12,623
Residential mortgage-backed		3,950		255		14		(10	)		—		4,209
Commercial mortgage-backed		3,346		105		2		(39	)		—		3,414
Other asset-backed		3,052		20		1		(5	)		—		3,068
Total fixed maturity securities		57,763		5,001		17		(229	)		—		62,552
Equity securities		720		59		—		(14	)		—		765
Total available-for-sale securities	$	58,483	$	5,060	$	17	$	(243	)	$	—	$	63,317

As of December 31, 2016, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

			Gross unrealized gains				Gross unrealized losses
(Amounts in millions)	Amortized cost or cost		Not other-than- temporarily impaired		Other-than- temporarily impaired		Not other-than- temporarily impaired			Other-than- temporarily impaired		Fair value
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	5,439	$	647	$	—	$	(50	)	$	—	$	6,036
State and political subdivisions		2,515		182		—		(50	)		—		2,647
Non-U.S. government		2,024		101		—		(18	)		—		2,107
U.S. corporate:
Utilities		4,137		454		—		(41	)		—		4,550
Energy		2,167		157		—		(24	)		—		2,300
Finance and insurance		5,719		424		—		(46	)		—		6,097
Consumer—non-cyclical		4,335		433		—		(34	)		—		4,734
Technology and communications		2,473		157		—		(32	)		—		2,598
Industrial		1,161		76		—		(14	)		—		1,223
Capital goods		2,043		228		—		(13	)		—		2,258
Consumer—cyclical		1,455		92		—		(17	)		—		1,530
Transportation		1,121		86		—		(17	)		—		1,190
Other		332		17		—		(1	)		—		348
Total U.S. corporate		24,943		2,124		—		(239	)		—		26,828
Non-U.S. corporate:
Utilities		940		40		—		(11	)		—		969
Energy		1,234		109		—		(12	)		—		1,331
Finance and insurance		2,413		134		—		(9	)		—		2,538
Consumer—non-cyclical		711		17		—		(14	)		—		714
Technology and communications		953		44		—		(10	)		—		987
Industrial		928		39		—		(9	)		—		958
Capital goods		518		21		—		(4	)		—		535
Consumer—cyclical		434		10		—		(2	)		—		442
Transportation		619		65		—		(7	)		—		677
Other		2,967		190		—		(13	)		—		3,144
Total non-U.S. corporate		11,717		669		—		(91	)		—		12,295
Residential mortgage-backed		4,122		259		10		(12	)		—		4,379
Commercial mortgage-backed		3,084		98		3		(56	)		—		3,129
Other asset-backed		3,170		15		1		(35	)		—		3,151
Total fixed maturity securities		57,014		4,095		14		(551	)		—		60,572
Equity securities		628		31		—		(27	)		—		632
Total available-for-sale securities	$	57,642	$	4,126	$	14	$	(578	)	$	—	$	61,204

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of September 30, 2017:

	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	$	283	$	(6	)		22	$	31	$	(1	)		4	$	314	$	(7	)		26
State and political subdivisions		213		(5	)		45		230		(21	)		23		443		(26	)		68
Non-U.S. government		922		(23	)		36		24		(1	)		14		946		(24	)		50
U.S. corporate		2,335		(47	)		333		766		(36	)		106		3,101		(83	)		439
Non-U.S. corporate		1,562		(22	)		222		261		(13	)		36		1,823		(35	)		258
Residential mortgage-backed		656		(9	)		80		33		(1	)		28		689		(10	)		108
Commercial mortgage-backed		837		(25	)		120		201		(14	)		30		1,038		(39	)		150
Other asset-backed		736		(4	)		131		173		(1	)		40		909		(5	)		171
Subtotal, fixed maturity securities		7,544		(141	)		989		1,719		(88	)		281		9,263		(229	)		1,270
Equity securities		82		(5	)		142		111		(9	)		89		193		(14	)		231
Total for securities in an unrealized loss position	$	7,626	$	(146	)		1,131	$	1,830	$	(97	)		370	$	9,456	$	(243	)		1,501
% Below cost—fixed maturity securities:
<20% Below cost	$	7,544	$	(141	)		989	$	1,719	$	(88	)		281	$	9,263	$	(229	)		1,270
Total fixed maturity securities		7,544		(141	)		989		1,719		(88	)		281		9,263		(229	)		1,270
% Below cost—equity securities:
<20% Below cost		79		(4	)		139		111		(9	)		89		190		(13	)		228
20%-50% Below cost		3		(1	)		3		—		—			—		3		(1	)		3
Total equity securities		82		(5	)		142		111		(9	)		89		193		(14	)		231
Total for securities in an unrealized loss position	$	7,626	$	(146	)		1,131	$	1,830	$	(97	)		370	$	9,456	$	(243	)		1,501
Investment grade	$	7,437	$	(139	)		984	$	1,656	$	(90	)		287	$	9,093	$	(229	)		1,271
Below investment grade		189		(7	)		147		174		(7	)		83		363		(14	)		230
Total for securities in an unrealized loss position	$	7,626	$	(146	)		1,131	$	1,830	$	(97	)		370	$	9,456	$	(243	)		1,501

The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of September 30, 2017:

	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	$	468	$	(10	)		69	$	104	$	(5	)		17	$	572	$	(15	)		86
Energy		123		(1	)		22		146		(9	)		16		269		(10	)		38
Finance and insurance		542		(7	)		75		154		(4	)		21		696		(11	)		96
Consumer—non-cyclical		325		(7	)		50		84		(3	)		12		409		(10	)		62
Technology and communications		208		(4	)		30		127		(7	)		19		335		(11	)		49
Industrial		55		(1	)		12		56		(2	)		8		111		(3	)		20
Capital goods		274		(8	)		31		8		(1	)		2		282		(9	)		33
Consumer—cyclical		127		(2	)		18		70		(4	)		9		197		(6	)		27
Transportation		190		(5	)		24		17		(1	)		2		207		(6	)		26
Other		23		(2	)		2		—		—			—		23		(2	)		2
Subtotal, U.S. corporate securities		2,335		(47	)		333		766		(36	)		106		3,101		(83	)		439
Non-U.S. corporate:
Utilities		227		(4	)		31		19		(1	)		2		246		(5	)		33
Energy		142		(3	)		21		69		(4	)		11		211		(7	)		32
Finance and insurance		324		(3	)		49		50		(2	)		9		374		(5	)		58
Consumer—non-cyclical		131		(2	)		16		34		(1	)		4		165		(3	)		20
Technology and communications		80		(1	)		17		12		(1	)		2		92		(2	)		19
Industrial		67		(1	)		10		11		(1	)		2		78		(2	)		12
Capital goods		34		(1	)		6		34		(1	)		3		68		(2	)		9
Consumer—cyclical		101		(1	)		15		—		—			—		101		(1	)		15
Transportation		61		(1	)		13		32		(2	)		3		93		(3	)		16
Other		395		(5	)		44		—		—			—		395		(5	)		44
Subtotal, non-U.S. corporate securities		1,562		(22	)		222		261		(13	)		36		1,823		(35	)		258
Total for corporate securities in an unrealized loss position	$	3,897	$	(69	)		555	$	1,027	$	(49	)		142	$	4,924	$	(118	)		697

As indicated in the tables above, the majority of the securities in a continuous unrealized loss position for less than 12 months were investment grade and less than 20% below cost. These unrealized losses were primarily attributable to increase in interest rates, mostly concentrated in our corporate securities. For securities that have been in a continuous unrealized loss position for less than 12 months, the average fair value percentage below cost was approximately 2% as of September 30, 2017.

Fixed Maturity Securities In A Continuous Unrealized Loss Position For 12 Months Or More

Of the $88 million of unrealized losses on fixed maturity securities in a continuous unrealized loss for 12 months or more that were less than 20% below cost, the weighted-average rating was “A” and approximately 92% of the unrealized losses were related to investment grade securities as of September 30, 2017. These unrealized losses were predominantly attributable to corporate securities including variable rate securities purchased in a higher rate and lower spread environment. The average fair value percentage below cost for these securities was approximately 5% as of September 30, 2017. As of September 30, 2017, the company did not have any fixed maturity securities that have been in a continuous unrealized loss position for 12 months or more with a fair value that was more than 20% below cost.

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2016:

	Less than 12 months							12 months or more							Total
(Dollar amounts in millions)	Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities
Description of Securities
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	1,074	$	(50	)		37	$	—	$	—			—	$	1,074	$	(50	)		37
State and political subdivisions		644		(32	)		109		142		(18	)		12		786		(50	)		121
Non-U.S. government		497		(18	)		51		—		—			—		497		(18	)		51
U.S. corporate		5,221		(190	)		711		662		(49	)		94		5,883		(239	)		805
Non-U.S. corporate		2,257		(66	)		330		408		(25	)		57		2,665		(91	)		387
Residential mortgage-backed		725		(11	)		100		58		(1	)		35		783		(12	)		135
Commercial mortgage-backed		1,091		(55	)		168		25		(1	)		9		1,116		(56	)		177
Other asset-backed		1,069		(13	)		184		328		(22	)		68		1,397		(35	)		252
Subtotal, fixed maturity securities		12,578		(435	)		1,690		1,623		(116	)		275		14,201		(551	)		1,965
Equity securities		119		(9	)		182		114		(18	)		47		233		(27	)		229
Total for securities in an unrealized loss position	$	12,697	$	(444	)		1,872	$	1,737	$	(134	)		322	$	14,434	$	(578	)		2,194
% Below cost—fixed maturity securities:
<20% Below cost	$	12,578	$	(435	)		1,690	$	1,543	$	(90	)		267	$	14,121	$	(525	)		1,957
20%-50% Below cost		—		—			—		80		(26	)		8		80		(26	)		8
Total fixed maturity securities		12,578		(435	)		1,690		1,623		(116	)		275		14,201		(551	)		1,965
% Below cost—equity securities:
<20% Below cost		118		(8	)		167		101		(14	)		38		219		(22	)		205
20%-50% Below cost		1		(1	)		15		13		(4	)		9		14		(5	)		24
Total equity securities		119		(9	)		182		114		(18	)		47		233		(27	)		229
Total for securities in an unrealized loss position	$	12,697	$	(444	)		1,872	$	1,737	$	(134	)		322	$	14,434	$	(578	)		2,194
Investment grade	$	12,339	$	(432	)		1,657	$	1,354	$	(108	)		250	$	13,693	$	(540	)		1,907
Below investment grade		358		(12	)		215		383		(26	)		72		741		(38	)		287
Total for securities in an unrealized loss position	$	12,697	$	(444	)		1,872	$	1,737	$	(134	)		322	$	14,434	$	(578	)		2,194

The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2016:

	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	$	855	$	(39	)		130	$	21	$	(2	)		5	$	876	$	(41	)		135
Energy		190		(5	)		30		276		(19	)		38		466		(24	)		68
Finance and insurance		1,438		(38	)		177		113		(8	)		15		1,551		(46	)		192
Consumer—non-cyclical		921		(34	)		117		—		—			—		921		(34	)		117
Technology and communications		507		(22	)		70		126		(10	)		17		633		(32	)		87
Industrial		226		(7	)		38		77		(7	)		10		303		(14	)		48
Capital goods		322		(12	)		50		6		(1	)		1		328		(13	)		51
Consumer—cyclical		431		(16	)		56		26		(1	)		6		457		(17	)		62
Transportation		302		(16	)		41		17		(1	)		2		319		(17	)		43
Other		29		(1	)		2		—		—			—		29		(1	)		2
Subtotal, U.S. corporate securities		5,221		(190	)		711		662		(49	)		94		5,883		(239	)		805
Non-U.S. corporate:
Utilities		240		(10	)		32		14		(1	)		1		254		(11	)		33
Energy		105		(3	)		18		91		(9	)		16		196		(12	)		34
Finance and insurance		474		(8	)		79		71		(1	)		16		545		(9	)		95
Consumer—non-cyclical		308		(14	)		30		—		—			—		308		(14	)		30
Technology and communications		232		(9	)		34		28		(1	)		2		260		(10	)		36
Industrial		165		(5	)		21		91		(4	)		10		256		(9	)		31
Capital goods		104		(2	)		14		28		(2	)		2		132		(4	)		16
Consumer—cyclical		90		(2	)		17		—		—			—		90		(2	)		17
Transportation		106		(5	)		16		25		(2	)		2		131		(7	)		18
Other		433		(8	)		69		60		(5	)		8		493		(13	)		77
Subtotal, non-U.S. corporate securities		2,257		(66	)		330		408		(25	)		57		2,665		(91	)		387
Total for corporate securities in an unrealized loss position	$	7,478	$	(256	)		1,041	$	1,070	$	(74	)		151	$	8,548	$	(330	)		1,192

The scheduled maturity distribution of fixed maturity securities as of September 30, 2017 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 or cost		Fair value
Due one year or less	$	1,943	$	1,966
Due after one year through five years		10,901		11,333
Due after five years through ten years		12,363		12,933
Due after ten years		22,208		25,629
Subtotal		47,415		51,861
Residential mortgage-backed		3,950		4,209
Commercial mortgage-backed		3,346		3,414
Other asset-backed		3,052		3,068
Total	$	57,763	$	62,552

As of September 30, 2017, $12,426 million of our investments (excluding mortgage-backed and asset-backed securities) were subject to certain call provisions.

As of September 30, 2017, securities issued by finance and insurance, utilities and consumer—non-cyclical industry groups represented approximately 23%, 15% and 13%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio.

As of September 30, 2017, 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 loan losses.

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

	September 30, 2017						December 31, 2016
(Amounts in millions)	Carrying value			% of total			Carrying value			% of total
Property type:
Retail	$	2,220			35	%	$	2,178			36	%
Industrial		1,608			26			1,533			25
Office		1,465			23			1,430			23
Apartments		489			8			455			7
Mixed use		222			4			245			4
Other		277			4			284			5
Subtotal		6,281			100	%		6,125			100	%
Unamortized balance of loan origination fees and costs		(3	)					(2	)
Allowance for losses		(10	)					(12	)
Total	$	6,268					$	6,111

	September 30, 2017						December 31, 2016
(Amounts in millions)	Carrying value			% of total			Carrying value			% of total
Geographic region:
South Atlantic	$	1,620			26	%	$	1,546			25	%
Pacific		1,600			26			1,567			27
Middle Atlantic		904			14			915			15
Mountain		556			9			554			9
West North Central		441			7			435			7
East North Central		386			6			388			6
West South Central		327			5			311			5
New England		237			4			206			3
East South Central		210			3			203			3
Subtotal		6,281			100	%		6,125			100	%
Unamortized balance of loan origination fees and costs		(3	)					(2	)
Allowance for losses		(10	)					(12	)
Total	$	6,268					$	6,111

The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated:

	September 30, 2017
(Amounts in millions)	31 - 60 days past due			61 - 90 days past due			Greater than 90 days past due			Total past due			Current			Total
Property type:
Retail	$	—		$	—		$	—		$	—		$	2,220		$	2,220
Industrial		—			—			—			—			1,608			1,608
Office		6			—			—			6			1,459			1,465
Apartments		—			—			—			—			489			489
Mixed use		—			—			—			—			222			222
Other		—			—			—			—			277			277
Total recorded investment	$	6		$	—		$	—		$	6		$	6,275		$	6,281
% of total commercial mortgage loans		—	%		—	%		—	%		—	%		100	%		100	%

	December 31, 2016
(Amounts in millions)	31 - 60 days past due			61 - 90 days past due			Greater than 90 days past due			Total past due			Current			Total
Property type:
Retail	$	—		$	—		$	—		$	—		$	2,178		$	2,178
Industrial		1			—			12			13			1,520			1,533
Office		—			—			—			—			1,430			1,430
Apartments		—			—			—			—			455			455
Mixed use		—			—			—			—			245			245
Other		—			—			—			—			284			284
Total recorded investment	$	1		$	—		$	12		$	13		$	6,112		$	6,125
% of total commercial mortgage loans		—	%		—	%		—	%		—	%		100	%		100	%

As of September 30, 2017 and December 31, 2016, we had no commercial mortgage loans that were past due for more than 90 days and still accruing interest. As of September 30, 2017, we had one commercial mortgage loan past due for less than 90 days on non-accrual status due to the borrower filing for bankruptcy in September 2017. We did not have any commercial mortgage loans that were past due for less than 90 days on non-accrual status as of December 31, 2016.

We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of September 30, 2017, none of our commercial mortgage loans were greater than 90 days past due.

During the nine months ended September 30, 2017 and the year ended December 31, 2016, we modified or extended 7 and 16 commercial mortgage loans, respectively, with a total carrying value of $19 million and $85 million, respectively. All of these modifications or extensions were based on current market interest rates, did not result in any forgiveness in the outstanding principal amount owed by the borrower, except during the year ended December 31, 2016, one loan with a carrying value $1 million at the time of modification was considered a troubled debt restructuring. This loan was sold in the fourth quarter of 2016.

The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the periods indicated:

	Three months ended September 30,				Nine months ended September 30,
(Amounts in millions)	2017		2016		2017			2016
Allowance for credit losses:
Beginning balance	$	10	$	13	$	12		$	15
Charge-offs		—		—		—			(4	)
Recoveries		—		—		—			—
Provision		—		—		(2	)		2
Ending balance	$	10	$	13	$	10		$	13
Ending allowance for individually impaired loans	$	—	$	—	$	—		$	—
Ending allowance for loans not individually impaired that were evaluated collectively for impairment	$	10	$	13	$	10		$	13
Recorded investment:
Ending balance	$	6,281	$	6,032	$	6,281		$	6,032
Ending balance of individually impaired loans	$	—	$	17	$	—		$	17
Ending balance of loans not individually impaired that were evaluated collectively for impairment	$	6,281	$	6,015	$	6,281		$	6,015

As of September 30, 2017, we had no individually impaired commercial mortgage loans. As of September 30, 2016, we had individually impaired commercial mortgage loans included within the retail property type with a recorded investment of $5 million, an unpaid principal balance of $7 million, charge-offs of $2 million and an average recorded investment of $3 million. As of December 31, 2016, we had one individually impaired loan within the industrial property type with a recorded investment of $12 million, an unpaid principal balance of $15 million and charge-offs of $3 million.

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 loan-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 loan-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 loan-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was 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 should not be 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.

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

	September 30, 2017
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100% (1)			Total
Property type:
Retail	$	933		$	499		$	788		$	—		$	—		$	2,220
Industrial		747			356			503			2			—			1,608
Office		583			393			473			14			2			1,465
Apartments		236			105			143			5			—			489
Mixed use		101			59			62			—			—			222
Other		68			29			180			—			—			277
Total recorded investment	$	2,668		$	1,441		$	2,149		$	21		$	2		$	6,281
% of total		43	%		23	%		34	%		—	%		—	%		100	%
Weighted-average debt service coverage ratio		2.65			1.85			1.60			0.63			1.04			2.10

⁽¹⁾ Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 103%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

	December 31, 2016
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100% (1)			Total
Property type:
Retail	$	743		$	511		$	913		$	11		$	—		$	2,178
Industrial		605			430			484			14			—			1,533
Office		431			310			656			26			7			1,430
Apartments		188			89			173			5			—			455
Mixed use		67			87			91			—			—			245
Other		60			30			194			—			—			284
Total recorded investment	$	2,094		$	1,457		$	2,511		$	56		$	7		$	6,125
% of total		34	%		24	%		41	%		1	%		—	%		100	%
Weighted-average debt service coverage ratio		2.20			1.88			1.61			0.80			(0.07	)		1.87

⁽¹⁾ Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

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

	September 30, 2017
(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	$	43		$	242		$	298		$	999		$	638		$	2,220
Industrial		24			63			180			679			662			1,608
Office		72			67			151			521			654			1,465
Apartments		—			20			75			193			201			489
Mixed use		2			4			26			86			104			222
Other		1			149			15			72			40			277
Total recorded investment	$	142		$	545		$	745		$	2,550		$	2,299		$	6,281
% of total		2	%		9	%		12	%		40	%		37	%		100	%
Weighted-average loan-to-value		57	%		60	%		58	%		57	%		41	%		52	%

	December 31, 2016
(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	$	67		$	204		$	425		$	899		$	583		$	2,178
Industrial		71			113			236			599			514			1,533
Office		91			117			172			609			441			1,430
Apartments		19			22			44			217			153			455
Mixed use		2			9			19			128			87			245
Other		1			148			60			55			20			284
Total recorded investment	$	251		$	613		$	956		$	2,507		$	1,798		$	6,125
% of total		4	%		10	%		16	%		41	%		29	%		100	%
Weighted-average loan-to-value		61	%		60	%		59	%		58	%		45	%		55	%

As of September 30, 2017 and December 31, 2016, we did not have any floating rate commercial mortgage loans.

(f) Restricted Commercial Mortgage Loans Related To Securitization Entities

We have a consolidated securitization entity that holds commercial mortgage loans that are recorded as restricted commercial mortgage loans related to securitization entities.

(g) Restricted Other Invested Assets Related To Securitization Entities

We previously had consolidated securitization entities that held certain investments that were recorded as restricted other invested assets related to securitization entities. The consolidated securitization entities held certain investments as trading securities whereby the changes in fair value were recorded in current period income (loss). The trading securities comprised asset-backed securities, including highly rated bonds that were primarily backed by credit card receivables. In 2017, these trading securities were sold as we repositioned these assets in connection with the maturity of the associated liabilities.

(h) Limited Partnerships or Similar Entities

Investments in partnerships or similar entities are generally considered VIEs when the equity group lacks sufficient financial control. Generally, these investments are limited partner or non-managing member equity investments in a widely held fund that is sponsored and managed by a reputable asset manager. We are not the primary beneficiary of any VIE investment in a limited partnership or similar entity. As of September 30, 2017 and December 31, 2016, the total carrying value of these investments was $208 million and $178 million, respectively. Our maximum exposure to loss is equal to the outstanding carrying value and future funding commitments. We have not contributed, and do not plan to contribute, any additional financial or other support outside of what is contractually obligated.

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Derivative Instruments

9 Months Ended

Sep. 30, 2017

Derivative Instruments

(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 certain 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.

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

	Derivative assets					Derivative liabilities
		Fair value						Fair value
(Amounts in millions)	Balance  sheet classification	September 30, 2017 (5)		December 31, 2016		Balance  sheet classification		September 30, 2017 (5)		December 31, 2016
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps	Other invested assets	$	70	$	237		Other liabilities	$	39	$	203
Foreign currency swaps	Other invested assets		2		4		Other liabilities		—		—
Total cash flow hedges			72		241				39		203
Total derivatives designated as hedges			72		241				39		203
Derivatives not designated as hedges
Interest rate swaps	Other invested assets		—		359		Other liabilities		—		146
Foreign currency swaps	Other invested assets		10		—		Other liabilities		—		5
Credit default swaps related to securitization entities	Restricted other invested assets		—		—		Other liabilities		—		1
Equity index options	Other invested assets		81		72		Other liabilities		—		—
Financial futures	Other invested assets		—		—		Other liabilities		—		—
Equity return swaps	Other invested assets		—		1		Other liabilities		2		1
Other foreign currency contracts	Other invested assets		98		35		Other liabilities		23		27
GMWB embedded derivatives	Reinsurance recoverable(1)		14		16		Policyholder account balances(2)		257		303
Fixed index annuity embedded derivatives	Other assets		—		—		Policyholder account balances(3)		394		344
Indexed universal life embedded derivatives	Reinsurance recoverable		—		—		Policyholder account balances(4)		14		11
Total derivatives not designated as hedges			203		483				690		838
Total derivatives		$	275	$	724			$	729	$	1,041

⁽¹⁾ Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities.

⁽²⁾ Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

⁽³⁾ Represents the embedded derivatives associated with our fixed index annuity liabilities.

⁽⁴⁾ Represents the embedded derivatives associated with our indexed universal life liabilities.

⁽⁵⁾ In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017.

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

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

(Notional in millions)	Measurement		December 31, 2016		Additions		Maturities/ terminations			September 30, 2017
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps		Notional	$	11,570	$	—	$	(306	)	$	11,264
Foreign currency swaps		Notional		22		—		—			22
Total cash flow hedges				11,592		—		(306	)		11,286
Total derivatives designated as hedges				11,592		—		(306	)		11,286
Derivatives not designated as hedges
Interest rate swaps		Notional		4,679		—		—			4,679
Foreign currency swaps		Notional		201		95		(14	)		282
Credit default swaps		Notional		39		—		—			39
Credit default swaps related to securitization entities		Notional		312		—		(200	)		112
Equity index options		Notional		2,396		1,584		(1,484	)		2,496
Financial futures		Notional		1,398		4,300		(4,376	)		1,322
Equity return swaps		Notional		165		186		(258	)		93
Other foreign currency contracts		Notional		3,130		2,163		(691	)		4,602
Total derivatives not designated as hedges				12,320		8,328		(7,023	)		13,625
Total derivatives			$	23,912	$	8,328	$	(7,329	)	$	24,911

(Number of policies)	Measurement		December 31, 2016		Additions		Maturities/ terminations			September 30, 2017
Derivatives not designated as hedges
GMWB embedded derivatives		Policies		33,238		—		(2,127	)		31,111
Fixed index annuity embedded derivatives		Policies		17,549		—		(367	)		17,182
Indexed universal life embedded derivatives		Policies		1,074		1		(66	)		1,009

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 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 investments to fixed rate investments; (ii) various types of interest rate swaps to convert floating rate liabilities into fixed rate liabilities; (iii) receive U.S. dollar fixed on foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments; (iv) forward starting interest rate swaps to hedge against changes in interest rates associated with future fixed rate bond purchases and/or interest income; (v) forward bond purchase commitments to hedge against the variability in the anticipated cash flows required to purchase future fixed rate bonds; and (vi) other instruments to hedge the cash flows of various forecasted transactions.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2017:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	17		$	34		Net investment income	$	—		Net investment gains (losses)
Foreign currency swaps		(1	)		—		Net investment income		—		Net investment gains (losses)
Total	$	16		$	34			$	—

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2016:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	115		$	27		Net investment income	$	2		Net investment gains (losses)
Interest rate swaps hedging liabilities		(2	)		—		Interest expense		—		Net investment gains (losses)
Foreign currency swaps		(1	)		—		Net investment income		—		Net investment gains (losses)
Total	$	112		$	27			$	2

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2017:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	50		$	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		(2	)		—		Interest expense		—		Net investment gains (losses)
Foreign currency swaps		(2	)		—		Net investment income		—		Net investment gains (losses)
Total	$	46		$	97			$	—

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2016:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	839		$	80		Net investment income	$	13		Net investment gains (losses)
Interest rate swaps hedging assets		—			1		Net investment gains (losses)		—		Net investment gains (losses)
Interest rate swaps hedging liabilities		(52	)		—		Interest expense		—		Net investment gains (losses)
Inflation indexed swaps		(5	)		2		Net investment income		—		Net investment gains (losses)
Inflation indexed swaps		—			7		Net investment gains (losses)		—		Net investment gains (losses)
Foreign currency swaps		(2	)		—		Net investment income		—		Net investment gains (losses)
Total	$	780		$	90			$	13

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following tables provide a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” for the periods indicated:

	Three months ended September 30,
(Amounts in millions)	2017			2016
Derivatives qualifying as effective accounting hedges as of July 1	$	2,064		$	2,439
Current period increases (decreases) in fair value, net of deferred taxes of $(6) and $(40)		10			72
Reclassification to net (income), net of deferred taxes of $12 and $9		(22	)		(18	)
Derivatives qualifying as effective accounting hedges as of September 30	$	2,052		$	2,493

	Nine months ended September 30,
(Amounts in millions)	2017			2016
Derivatives qualifying as effective accounting hedges as of January 1	$	2,085		$	2,045
Current period increases (decreases) in fair value, net of deferred taxes of $(17) and $(273)		29			507
Reclassification to net (income), net of deferred taxes of $35 and $31		(62	)		(59	)
Derivatives qualifying as effective accounting hedges as of September 30	$	2,052		$	2,493

The total of derivatives designated as cash flow hedges of $2,052 million, net of taxes, recorded in stockholders’ equity as of September 30, 2017 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, $95 million, net of taxes, is expected to be reclassified to net income (loss) in the next 12 months. Actual amounts may vary from this amount as a result of market conditions. All forecasted transactions associated with qualifying cash flow hedges are expected to occur by 2057. During the nine months ended September 30, 2017, there was approximately $2 million reclassified to net income (loss) in connection with forecasted transactions that were no longer considered probable of occurring.

Derivatives Not Designated As Hedges

We also enter into certain non-qualifying derivative instruments such as: (i) interest rate swaps and financial futures to mitigate interest rate risk as part of managing regulatory capital positions; (ii) credit default swaps to enhance yield and reproduce characteristics of investments with similar terms and credit risk; (iii) equity index options, equity return swaps, interest rate swaps and financial futures to mitigate the risks associated with liabilities that have guaranteed minimum benefits, fixed index annuities and indexed universal life; (iv) interest rate swaps where the hedging relationship does not qualify for hedge accounting; (v) credit default swaps to mitigate loss exposure to certain credit risk; (vi) foreign currency swaps, options and forward contracts to mitigate currency risk associated with non-functional currency investments held by certain foreign subsidiaries and future dividends or other cash flows from certain foreign subsidiaries to our holding company; and (vii) equity index options to mitigate certain macroeconomic risks associated with certain foreign subsidiaries. Additionally, we provide GMWBs on certain variable annuities that are required to be bifurcated as embedded derivatives. We also offer fixed index annuity and indexed universal life products and have reinsurance agreements with certain features that are required to be bifurcated as embedded derivatives.

We also have derivatives related to securitization entities where we were required to consolidate the related securitization entity as a result of our involvement in the structure. The counterparties for these derivatives typically only have recourse to the securitization entity. The interest rate swaps used for these entities are typically used to effectively convert the interest payments on the assets of the securitization entity to the same basis as the interest rate on the borrowings issued by the securitization entity. Credit default swaps are utilized in certain securitization entities to enhance the yield payable on the borrowings issued by the securitization entity and also include a settlement feature that allows the securitization entity to provide the par value of assets in the securitization entity for the amount of any losses incurred under the credit default swap.

The following tables provide 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 September 30,						Classification of gain (loss) recognized in net income (loss)
(Amounts in millions)	2017			2016
Interest rate swaps	$	1		$	(1	)	Net investment gains (losses)
Credit default swaps related to securitization entities		2			2		Net investment gains (losses)
Equity index options		16			9		Net investment gains (losses)
Financial futures		(17	)		(35	)	Net investment gains (losses)
Equity return swaps		(5	)		(9	)	Net investment gains (losses)
Other foreign currency contracts		40			(2	)	Net investment gains (losses)
Foreign currency swaps		8			(1	)	Net investment gains (losses)
GMWB embedded derivatives		30			60		Net investment gains (losses)
Fixed index annuity embedded derivatives		(21	)		(16	)	Net investment gains (losses)
Indexed universal life embedded derivatives		2			3		Net investment gains (losses)
Total derivatives not designated as hedges	$	56		$	10

	Nine months ended September 30,						Classification of gain (loss) recognized in net income (loss)
(Amounts in millions)	2017			2016
Interest rate swaps	$	2		$	7		Net investment gains (losses)
Interest rate swaps related to securitization entities		—			(10	)	Net investment gains (losses)
Credit default swaps related to securitization entities		6			16		Net investment gains (losses)
Equity index options		42			5		Net investment gains (losses)
Financial futures		(25	)		(9	)	Net investment gains (losses)
Equity return swaps		(19	)		(2	)	Net investment gains (losses)
Other foreign currency contracts		66			(6	)	Net investment gains (losses)
Foreign currency swaps		13			6		Net investment gains (losses)
GMWB embedded derivatives		64			(58	)	Net investment gains (losses)
Fixed index annuity embedded derivatives		(57	)		(22	)	Net investment gains (losses)
Indexed universal life embedded derivatives		5			6		Net investment gains (losses)
Total derivatives not designated as hedges	$	97		$	(67	)

Derivative Counterparty Credit Risk

Most of our derivative arrangements require the posting of collateral by the counterparty upon meeting certain net exposure thresholds. For derivatives related to securitization entities, there are no arrangements that require either party to provide collateral and the recourse of the derivative counterparty is typically limited to the assets held by the securitization entity and there is no recourse to any entity other than the securitization entity.

The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated:

	September 30, 2017									December 31, 2016
(Amounts in millions)	Derivatives assets (1)			Derivatives liabilities (2)			Net derivatives			Derivatives assets (1)			Derivatives liabilities (2)			Net derivatives
Amounts presented in the balance sheet:
Gross amounts recognized	$	262		$	66		$	196		$	724		$	387		$	337
Gross amounts offset in the balance sheet		—			—			—			—			—			—
Net amounts presented in the balance sheet		262			66			196			724			387			337
Gross amounts not offset in the balance sheet:
Financial instruments (3)		(24	)		(24	)		—			(172	)		(172	)		—
Collateral received		(164	)		—			(164	)		(467	)		—			(467	)
Collateral pledged		—			(301	)		301			—			(557	)		557
Over collateralization		8			259			(251	)		1			344			(343	)
Net amount	$	82		$	—		$	82		$	86		$	2		$	84

⁽¹⁾ Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively.

⁽²⁾ Included $2 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2017 and December 31, 2016, respectively.

⁽³⁾  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.

Except for derivatives related to securitization entities, almost all of our master swap agreements contain credit downgrade provisions that allow either party to assign or terminate derivative transactions if the other party’s long-term unsecured debt rating or financial strength rating is below the limit defined in the applicable agreement. If downgrade provisions had been triggered as a result of downgrades of our counterparties, we could have claimed up to $82 million and $86 million as of September 30, 2017 and December 31, 2016, respectively, or have been required to disburse up to $2 million as of December 31, 2016. There were no amounts that we would have been required to disburse as of September 30, 2017 . The chart above excludes embedded derivatives and derivatives related to securitization entities as those derivatives are not subject to master netting arrangements.

Credit Derivatives

We sell protection under single name credit default swaps and credit default swap index tranches in combination with purchasing securities to replicate characteristics of similar investments based on the credit quality and term of the credit default swap. Credit default triggers for both indexed reference entities and single name reference entities follow the Credit Derivatives Physical Settlement Matrix published by the International Swaps and Derivatives Association. Under these terms, credit default triggers are defined as bankruptcy, failure to pay or restructuring, if applicable. Our maximum exposure to credit loss equals the notional value for credit default swaps. In the event of default for credit default swaps, we are typically required to pay the protection holder the full notional value less a recovery rate determined at auction.

In addition to the credit derivatives discussed above, we also have credit derivative instruments related to securitization entities that we consolidate. These derivatives represent a customized index of reference entities with specified attachment points for certain derivatives. The credit default triggers are similar to those described above. In the event of default, the securitization entity will provide the counterparty with the par value of assets held in the securitization entity for the amount of incurred loss on the credit default swap. The maximum exposure to loss for the securitization entity is the notional value of the derivatives. Certain losses on these credit default swaps would be absorbed by the third-party noteholders of the securitization entity and the remaining losses on the credit default swaps would be absorbed by our portion of the notes issued by the securitization entity.

The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated:

	September 30, 2017						December 31, 2016
(Amounts in millions)	Notional value		Assets		Liabilities		Notional value		Assets		Liabilities
Investment grade
Matures in less than one year	$	39	$	—	$	—	$	—	$	—	$	—
Matures after one year through five years		—		—		—		39		—		—
Total credit default swaps on single name reference entities	$	39	$	—	$	—	$	39	$	—	$	—

The following table sets forth our credit default swaps where we sell protection on credit default swap index tranches and the fair values as of the dates indicated:

	September 30, 2017						December 31, 2016
(Amounts in millions)	Notional value		Assets		Liabilities		Notional value		Assets		Liabilities
Customized credit default swap index tranches related to securitization entities:
Portion backing third-party borrowings maturing 2017 (1)	$	12	$	—	$	—	$	12	$	—	$	—
Portion backing our interest maturing 2017 (2)		100		—				300		—		1
Total customized credit default swap index tranches related to securitization entities		112		—		—		312		—		1
Total credit default swaps on index tranches	$	112	$	—	$	—	$	312	$	—	$	1

⁽¹⁾ Original notional value was $39 million.

⁽²⁾ Original notional value was $300 million.

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2017

Fair Value of Financial Instruments

(6) Fair Value of Financial Instruments

Assets and liabilities that are reflected in the accompanying unaudited 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, separate accounts, securities held as collateral and derivative instruments. Other financial assets and liabilities—those not carried at fair value—are discussed below. Apart from certain of our borrowings and certain marketable securities, few of the instruments discussed below are actively traded and their fair values must often be determined using 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.

The basis on which we estimate fair value is as follows:

Commercial mortgage loans. Based on recent transactions and/or discounted future cash flows, using current market rates. Given the limited availability of data related to transactions for similar instruments, we typically classify these loans as Level 3.

Restricted commercial mortgage loans. Based on recent transactions and/or discounted future cash flows, using current market rates. Given the limited availability of data related to transactions for similar instruments, we typically classify these loans as Level 3.

Other invested assets. Primarily represents limited partnerships accounted for under the cost method. 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. Cost method limited partnerships typically include significant unobservable inputs as a result of being relatively illiquid with limited market activity for similar instruments and are classified as Level 3.

Long-term borrowings. We utilize available market data when determining fair value of long-term borrowings issued in the United States and Canada, which includes data on recent trades for the same or similar financial instruments. Accordingly, these instruments are classified as Level 2 measurements. In cases where market data is not available such as our long-term borrowings in Australia, we use third-party broker provided prices (“broker quotes”) for which we consider the valuation methodology utilized by the third party, but the valuation typically includes significant unobservable inputs. Accordingly, we classify these borrowings where fair value is based on our consideration of broker quotes as Level 3 measurements.

Non-recourse funding obligations. We use an internal model to determine fair value using the current floating rate coupon and expected life/final maturity of the instrument discounted using the floating rate index and current market spread assumption, which is estimated based on recent transactions for these instruments or similar instruments as well as other market information or broker provided data. Given these instruments are private and very little market activity exists, our current market spread assumption is considered to have significant unobservable inputs in calculating fair value and, therefore, results in the fair value of these instruments being classified as Level 3.

Borrowings related to securitization entities. Based on market quotes or comparable market transactions. Some of these borrowings are publicly traded debt securities and are classified as Level 2. Certain borrowings are not publicly traded and are classified as Level 3.

Investment contracts. Based on expected future cash flows, discounted at current market rates for annuity contracts or institutional products. Given the significant unobservable inputs associated with policyholder behavior and current market rate assumptions used to discount the expected future cash flows, we classify these instruments as Level 3 except for certain funding agreement-backed notes that are traded in the marketplace as a security and are classified as Level 2.

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

	September 30, 2017
	Notional amount			Carrying amount		Fair value
(Amounts in millions)						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans	$		(1)	$	6,268	$	6,550	$	—	$	—	$	6,550
Restricted commercial mortgage loans			(1)		111		122		—		—		122
Other invested assets			(1)		217		243		—		—		243
Liabilities:
Long-term borrowings			(1)		4,224		3,742		—		3,583		159
Non-recourse funding obligations			(1)		310		195		—		—		195
Borrowings related to securitization entities			(1)		47		48		—		48		—
Investment contracts			(1)		15,163		15,705		—		5		15,700
Other firm commitments:
Commitments to fund limited partnerships		319			—		—		—		—		—
Ordinary course of business lending commitments		61			—		—		—		—		—

	December 31, 2016
	Notional amount			Carrying amount		Fair value
(Amounts in millions)						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans	$		(1)	$	6,111	$	6,247	$	—	$	—	$	6,247
Restricted commercial mortgage loans			(1)		129		141		—		—		141
Other invested assets			(1)		459		473		—		352		121
Liabilities:
Long-term borrowings			(1)		4,180		3,582		—		3,440		142
Non-recourse funding obligations			(1)		310		186		—		—		186
Borrowings related to securitization entities			(1)		62		65		—		65		—
Investment contracts			(1)		16,437		16,993		—		5		16,988
Other firm commitments:
Commitments to fund limited partnerships		201			—		—		—		—		—
Ordinary course of business lending commitments		73			—		—		—		—		—

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

Recurring Fair Value Measurements

We have fixed maturity, short-term investments, equity and trading securities, derivatives, embedded derivatives, securities held as collateral, separate account assets 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, short-term investments, equity and trading securities

The fair value of fixed maturity, short-term investments, equity and trading securities are estimated primarily based on information derived from third-party pricing services (“pricing services”), internal models and/or broker quotes, which 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, a security is valued using that market information for similar securities, which is also a market approach. When market information is not available for a specific security 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. In addition, a combination of the results from market and income approaches may be used to estimate fair value. These valuation techniques may change from period to period, based on the relevance and availability of market data.

We utilize certain third-party data providers when determining fair value. We consider information obtained from pricing services as well as broker quotes in our determination of fair value. Additionally, we utilize internal models to determine the valuation of securities using an income approach where the inputs are based on third-party provided market inputs. 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. We also use various methods to obtain an understanding of the valuation methodologies and procedures used by third-party data providers to ensure sufficient understanding to evaluate the valuation data received, including an understanding of the assumptions and inputs utilized to determine the appropriate fair value. For pricing services, we analyze the prices provided by our primary pricing services to other readily available pricing services and perform a detailed review of the assumptions and inputs from each pricing service to determine the appropriate fair value when pricing differences exceed certain thresholds. We evaluate changes in fair value that are greater than certain pre-defined thresholds each month to further aid in our review of the accuracy of fair value measurements and our understanding of changes in fair value, with more detailed reviews performed by the asset managers responsible for the related asset class associated with the security being reviewed. A pricing committee provides additional oversight and guidance in the evaluation and review of the pricing methodologies used to value our investment portfolio.

In general, we first obtain valuations from pricing services. If a price is not supplied by a pricing service, we will typically seek a broker quote for public or private fixed maturity securities. In certain instances, we utilize price caps for broker quoted securities where the estimated market yield results in a valuation that may exceed the amount that we believe would be received in a market transaction. 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 identical securities are not readily observable and these securities are not typically valued by pricing services. 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 pricing services, we obtain an understanding of the pricing methodologies and procedures for each type of instrument. Additionally, on a monthly basis we review a sample of securities, examining the pricing service’s assumptions to determine if we agree with the service’s derived price. When available, we also evaluate the prices sampled as compared to other public prices. If a variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. In general, a pricing service does not provide a price for a security if sufficient information is not readily available to determine fair value or if such security is not in the specific sector or class covered by a particular pricing service. 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.

For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction and value all private fixed maturity securities at par that have less than 12 months to maturity. 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. To evaluate the reasonableness of the internal model, we review a sample of private fixed maturity securities each month. In that review we compare the modeled prices to the prices of similar public securities in conjunction with analysis on current market indicators. If a pricing variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. At the end of each month, all internally modeled prices are compared to the prior month prices with an evaluation of all securities with a month-over-month change greater than a pre-defined threshold. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs. We classify private securities without an external rating and public bond spread as Level 3. In general, increases (decreases) in credit spreads will decrease (increase) the fair value for our fixed maturity securities.

For broker quotes, we consider the valuation methodology utilized by the third party and analyze a sample each month to assess reasonableness given then-current market conditions. Additionally, for broker quotes on certain structured securities, we validate prices received against other publicly available pricing sources. Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements.

For remaining securities priced using internal models, we determine fair value using an income approach. We analyze a sample each month to assess reasonableness given then-current market conditions. 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.

A summary of the inputs used based on the level in which instruments are classified is included below. We have combined certain classes of instruments together as the nature of the inputs is similar.

Level 1 measurements

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

Separate account assets

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

Level 2 measurements

Fixed maturity securities

• Third-party pricing services: In estimating the fair value of fixed maturity securities, approximately 91% of our portfolio is priced using third-party pricing sources. 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 third-party 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 third-party pricing services for the purpose of understanding the methodologies, techniques and inputs used by the third-party pricing providers.

The following table presents a summary of the significant inputs used by our third-party pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of September 30, 2017:

(Amounts in millions)	Fair value		Primary methodologies	Significant inputs
U.S. government, agencies and government-sponsored enterprises	$	5,669	Price quotes from trading desk, broker feeds	Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread
State and political subdivisions	$	2,816	Multi-dimensional attribute-based modeling systems, third-party pricing vendors	Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes
Non-U.S. government	$	2,210	Matrix pricing, spread priced to benchmark curves, 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
U.S. corporate	$	25,290	Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, 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	$	10,711	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	$	4,123	OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced	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	$	3,392	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 swaps curves, TRACE reports
Other asset-backed	$	2,843	Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models	Spreads to daily updated swaps 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

• Internal models: A portion of our state and political subdivisions, non-U.S. government, U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities were $7 million, $16 million, $865 million and $461 million, respectively, as of September 30, 2017. 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.

Securities lending collateral

The fair value of securities held as collateral is primarily based on Level 2 inputs from market information for the collateral that is held on our behalf by the custodian. We determine fair value after considering prices obtained by third-party pricing services.

Short-term Investments

Short-term investments primarily include commercial paper and other highly liquid debt instruments and are classified as Level 2. We determine fair value after considering prices obtained by third-party pricing services.

Level 3 measurements

Fixed maturity securities

• Internal models: A portion of our U.S. government, agencies and government-sponsored enterprises, U.S. corporate, non-U.S. corporate, residential mortgage-backed and other asset-backed securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for 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 private fixed maturity securities are valued using an internal model using market observable inputs such as interest rate yield curve, as well as published credit spreads for similar securities where there are no external ratings of the instrument and include a significant unobservable input. 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 identical assets, or 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 $3,521 million as of September 30, 2017.

• Broker quotes: A portion of our state and political subdivisions, 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 third-party 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 $628 million as of September 30, 2017.

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.

Restricted other invested assets related to securitization entities

We previously held trading securities related to securitization entities that were classified as restricted other invested assets and were carried at fair value. The trading securities represented asset-backed securities. In 2017, these trading securities were sold as we repositioned these assets in connection with the maturity of the associated liabilities. The valuation for trading securities was determined using a market approach and/or an income approach depending on the availability of information. For certain highly rated asset-backed securities, there was observable market information for transactions of the same or similar instruments, which was provided to us by a third-party pricing service and was classified as Level 2. For certain securities that are not actively traded, we determined fair value after considering third-party broker provided prices or discounted expected cash flows using current yields for similar securities and classified these valuations as Level 3.

GMWB embedded derivatives

We are required to bifurcate an embedded derivative for certain features associated with annuity products and related reinsurance agreements where we provide a GMWB to the policyholder and are required to record the GMWB embedded derivative at fair value. The valuation of our GMWB embedded derivative is based on an income approach that incorporates inputs such as forward interest rates, equity index volatility, equity index and fund correlation, and policyholder assumptions such as utilization, lapse and mortality. In addition to these inputs, we also consider risk and expense margins when determining the projected cash flows that would be determined by another market participant. While the risk and expense margins are considered in determining fair value, these inputs do not have a significant impact on the valuation. We determine fair value using an internal model based on the various inputs noted above. The resulting fair value measurement from the model is reviewed by the product actuarial, risk and finance professionals each reporting period with changes in fair value also being compared to changes in derivatives and other instruments used to mitigate changes in fair value from certain market risks, such as equity index volatility and interest rates.

For GMWB liabilities, non-performance risk is integrated into the discount rate. Our discount rate used to determine fair value of our GMWB liabilities includes market credit spreads above U.S. Treasury rates to reflect an adjustment for the non-performance risk of the GMWB liabilities. As of September 30, 2017 and December 31, 2016, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $65 million and $73 million, respectively.

To determine the appropriate discount rate to reflect the non-performance risk of the GMWB liabilities, we evaluate the non-performance risk in our liabilities based on a hypothetical exit market transaction as there is no exit market for these types of liabilities. A hypothetical exit market can be viewed as a hypothetical transfer of the liability to another similarly rated insurance company which would closely resemble a reinsurance transaction. Another hypothetical exit market transaction can be viewed as a hypothetical transaction from the perspective of the GMWB policyholder. In determining the appropriate discount rate to incorporate non-performance risk of the GMWB liabilities, we also considered the impacts of state guarantees embedded in the related insurance product as a form of inseparable third-party guarantee. We believe that a hypothetical exit market participant would use a similar discount rate as described above to value the liabilities.

For equity index volatility, we determine the projected equity market volatility using both historical volatility and projected equity market volatility with more significance being placed on projected near-term volatility and recent historical data. Given the different attributes and market characteristics of GMWB liabilities compared to equity index options in the derivative market, the equity index volatility assumption for GMWB liabilities may be different from the volatility assumption for equity index options, especially for the longer dated points on the curve.

Equity index and fund correlations are determined based on historical price observations for the fund and equity index.

For policyholder assumptions, we use our expected lapse, mortality and utilization assumptions and update these assumptions for our actual experience, as necessary. For our lapse assumption, we adjust our base lapse assumption by policy based on a combination of the policyholder’s current account value and GMWB benefit.

We classify the GMWB valuation as Level 3 based on having significant unobservable inputs, with equity index volatility and non-performance risk being considered the more significant unobservable inputs. As equity index volatility increases, the fair value of the GMWB liabilities will increase. Any increase in non-performance risk would increase the discount rate and would decrease the fair value of the GMWB liability. Additionally, we consider lapse and utilization assumptions to be significant unobservable inputs. An increase in our lapse assumption would decrease the fair value of the GMWB liability, whereas an increase in our utilization rate would increase the fair value.

Fixed index annuity embedded derivatives

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

Indexed universal life embedded derivatives

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

Borrowings related to securitization entities

We record certain borrowings related to securitization entities at fair value. The fair value of these borrowings is determined using either a market approach or income approach, depending on the instrument and availability of market information. Given the unique characteristics of the securitization entities that issued these borrowings as well as the lack of comparable instruments, we determine fair value considering the valuation of the underlying assets held by the securitization entities and any derivatives, as well as any unique characteristics of the borrowings that may impact the valuation. After considering all relevant inputs, we determine fair value of the borrowings using the net valuation of the underlying assets and derivatives that are backing the borrowings. Accordingly, these instruments are classified as Level 3. Increases in the valuation of the underlying assets or decreases in the derivative liabilities will result in an increase in the fair value of these borrowings.

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 counterparty for our derivative assets or liabilities. We determine fair value for our derivatives using an income approach with internal models based on relevant market inputs for each derivative instrument. We also compare the fair value determined using our internal model to the valuations provided by our derivative counterparties with any significant differences or changes in valuation being evaluated further by our derivatives professionals that are familiar with the instrument and market inputs used in the valuation.

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. For certain other swaps, there are features that provide an option to the counterparty to terminate the swap at specified dates. The interest rate volatility input used to value these options would be considered a significant unobservable input and results in the fair value measurement of the derivative being classified as Level 3. These options to terminate the swap by the counterparty are based on forward interest rate swap curves and volatility. As interest rate volatility increases, our valuation of the derivative changes unfavorably.

Interest rate swaps related to securitization entities. The valuation of interest rate swaps related to securitization entities 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.

Inflation indexed swaps. The valuation of inflation indexed swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve, the current consumer price index and the forward consumer price index curve, which are generally considered observable inputs, and results 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 an observable input, and results in the derivative being classified as Level 2.

Credit default swaps. We have both single name credit default swaps and index tranche credit default swaps. For single name credit default swaps, we utilize an income approach to determine fair value based on using current market information for the credit spreads of the reference entity, which is considered observable inputs based on the reference entities of our derivatives and results in these derivatives being classified as Level 2. For index tranche credit default swaps, we utilize an income approach that utilizes current market information related to credit spreads and expected defaults and losses associated with the reference entities that comprise the respective index associated with each derivative. There are significant unobservable inputs associated with the timing and amount of losses from the reference entities as well as the timing or amount of losses, if any, that will be absorbed by our tranche. Accordingly, the index tranche credit default swaps are classified as Level 3. As credit spreads widen for the underlying issuers comprising the index, the change in our valuation of these credit default swaps will be unfavorable.

Credit default swaps related to securitization entities. Credit default swaps related to securitization entities represent customized index tranche credit default swaps and are valued using a similar methodology as described above for index tranche credit default swaps. We determine fair value of these credit default swaps after considering both the valuation methodology described above as well as the valuation provided by the derivative counterparty. In addition to the valuation methodology and inputs described for index tranche credit default swaps, these customized credit default swaps contain a feature that permits the securitization entity to provide the par value of underlying assets in the securitization entity to settle any losses under the credit default swap. The valuation of this settlement feature is dependent upon the valuation of the underlying assets and the timing and amount of any expected loss on the credit default swap, which is considered a significant unobservable input. Accordingly, these customized index tranche credit default swaps related to securitization entities are classified as Level 3. As credit spreads widen for the underlying issuers comprising the customized index, the change in our valuation of these credit default swaps will be unfavorable.

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 rate volatility and time value component associated with the optionality in the derivative, which are considered significant unobservable inputs in most instances. 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 equity index volatility increases, our valuation of these options changes favorably.

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.

Equity return swaps. The valuation of equity return swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and underlying equity index values, which are generally considered observable inputs, and results in the derivative being classified as Level 2.

Forward bond purchase commitments. The valuation of forward bond purchase commitments is determined using an income approach. The primary input into the valuation represents the current bond prices and interest rates, which are generally considered an observable input, and results in the derivative being classified as Level 2.

Other foreign currency contracts. We have certain foreign currency options classified as other foreign currency contracts. The valuation of foreign currency options is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve, foreign currency exchange rates, forward interest rate, foreign currency exchange rate volatility, foreign equity index volatility and time value component associated with the optionality in the derivative. As a result of the significant unobservable inputs associated with the forward interest rate, foreign currency exchange rate volatility and foreign equity index volatility inputs, the derivative is classified as Level 3. As foreign currency exchange rate volatility and foreign equity index volatility increases, the change in our valuation of these options will be favorable for purchase options and unfavorable for options sold. We also have foreign currency forward contracts where the valuation 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.

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

	September 30, 2017
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	5,670	$	—	$	5,669	$	1
State and political subdivisions		2,860		—		2,823		37
Non-U.S. government		2,226		—		2,226		—
U.S. corporate:
Utilities		4,923		—		4,261		662
Energy		2,440		—		2,282		158
Finance and insurance		6,587		—		5,917		670
Consumer—non-cyclical		4,828		—		4,701		127
Technology and communications		2,740		—		2,688		52
Industrial		1,346		—		1,299		47
Capital goods		2,321		—		2,203		118
Consumer—cyclical		1,611		—		1,349		262
Transportation		1,306		—		1,245		61
Other		380		—		210		170
Total U.S. corporate		28,482		—		26,155		2,327
Non-U.S. corporate:
Utilities		1,062		—		703		359
Energy		1,463		—		1,286		177
Finance and insurance		2,696		—		2,527		169
Consumer—non-cyclical		716		—		587		129
Technology and communications		1,014		—		985		29
Industrial		1,058		—		919		139
Capital goods		587		—		437		150
Consumer—cyclical		527		—		458		69
Transportation		718		—		537		181
Other		2,782		—		2,733		49
Total non-U.S. corporate		12,623		—		11,172		1,451
Residential mortgage-backed		4,209		—		4,123		86
Commercial mortgage-backed		3,414		—		3,392		22
Other asset-backed		3,068		—		2,843		225
Total fixed maturity securities		62,552		—		58,403		4,149
Equity securities		765		644		77		44
Other invested assets:
Derivative assets:
Interest rate swaps		70		—		70		—
Foreign currency swaps		12		—		12		—
Equity index options		81		—		—		81
Other foreign currency contracts		98		—		98		—
Total derivative assets		261		—		180		81
Securities lending collateral		237		—		237		—
Short-term investments		787		—		787		—
Total other invested assets		1,285		—		1,204		81
Reinsurance recoverable (1)		14		—		—		14
Separate account assets		7,264		7,264		—		—
Total assets	$	71,880	$	7,908	$	59,684	$	4,288

⁽¹⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

	December 31, 2016
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	6,036	$	—	$	6,034	$	2
State and political subdivisions		2,647		—		2,610		37
Non-U.S. government		2,107		—		2,107		—
U.S. corporate:
Utilities		4,550		—		3,974		576
Energy		2,300		—		2,090		210
Finance and insurance		6,097		—		5,311		786
Consumer—non-cyclical		4,734		—		4,613		121
Technology and communications		2,598		—		2,544		54
Industrial		1,223		—		1,175		48
Capital goods		2,258		—		2,106		152
Consumer—cyclical		1,530		—		1,272		258
Transportation		1,190		—		1,051		139
Other		348		—		205		143
Total U.S. corporate		26,828		—		24,341		2,487
Non-U.S. corporate:
Utilities		969		—		583		386
Energy		1,331		—		1,125		206
Finance and insurance		2,538		—		2,356		182
Consumer—non-cyclical		714		—		575		139
Technology and communications		987		—		920		67
Industrial		958		—		849		109
Capital goods		535		—		366		169
Consumer—cyclical		442		—		373		69
Transportation		677		—		496		181
Other		3,144		—		3,119		25
Total non-U.S. corporate		12,295		—		10,762		1,533
Residential mortgage-backed		4,379		—		4,336		43
Commercial mortgage-backed		3,129		—		3,075		54
Other asset-backed		3,151		—		3,006		145
Total fixed maturity securities		60,572		—		56,271		4,301
Equity securities		632		551		34		47
Other invested assets:
Trading securities		259		—		259		—
Derivative assets:
Interest rate swaps		596		—		596		—
Foreign currency swaps		4		—		4		—
Equity index options		72		—		—		72
Equity return swaps		1		—		1		—
Other foreign currency contracts		35		—		32		3
Total derivative assets		708		—		633		75
Securities lending collateral		534		—		534		—
Total other invested assets		1,501		—		1,426		75
Restricted other invested assets related to securitization entities		312		—		181		131
Reinsurance recoverable (1)		16		—		—		16
Separate account assets		7,299		7,299		—		—
Total assets	$	70,332	$	7,850	$	57,912	$	4,570

⁽¹⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers between levels at the beginning fair value for the reporting period in which the changes occur. Given the types of assets classified as Level 1, which primarily represents mutual fund investments, we typically do not have any transfers between Level 1 and Level 2 measurement categories and did not have any such transfers during any period presented.

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 third-party pricing sources to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3.

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 or for the dates indicated:

(Amounts in millions)	Beginning balance as of July 1, 2017		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2017		Total gains (losses) included in net income (loss) attributable to assets still held
			Included in net income (loss)			Included in OCI
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	1	$	—		$	—		$	—	$	—		$	—	$	—		$	—	$	—		$	1	$	—
State and political subdivisions		37		1			(1	)		—		—			—		—			—		—			37		1
U.S. corporate:
Utilities		638		—			—			26		—			—		(2	)		—		—			662		—
Energy		160		—			—			—		—			—		(2	)		—		—			158		—
Finance and insurance		861		3			(52	)		22		(14	)		—		(157	)		8		(1	)		670		2
Consumer—non-cyclical		122		—			1			4		—			—		—			—		—			127		—
Technology and communications		58		1			(3	)		—		—			—		(1	)		—		(3	)		52		1
Industrial		61		—			—			—		—			—		—			—		(14	)		47		—
Capital goods		118		1			—			—		—			—		(1	)		—		—			118		1
Consumer—cyclical		266		—			—			—		—			—		(2	)		—		(2	)		262		—
Transportation		100		16			(10	)		—		—			—		(45	)		—		—			61		—
Other		176		—			—			—		(4	)		—		(2	)		—		—			170		—
Total U.S. corporate		2,560		21			(64	)		52		(18	)		—		(212	)		8		(20	)		2,327		4
Non-U.S. corporate:
Utilities		359		—			—			—		—			—		—			—		—			359		—
Energy		177		—			1			—		—			—		(1	)		—		—			177		—
Finance and insurance		172		1			1			—		—			—		(5	)		—		—			169		—
Consumer—non-cyclical		129		—			—			—		—			—		—			—		—			129		—
Technology and communications		48		1			1			—		(21	)		—		—			—		—			29		—
Industrial		112		—			—			13		—			—		—			14		—			139		—
Capital goods		149		—			1			—		—			—		—			—		—			150		—
Consumer—cyclical		67		—			—			—		—			—		—			2		—			69		—
Transportation		190		—			1			—		—			—		(10	)		—		—			181		—
Other		41		(2	)		1			—		(2	)		—		—			11		—			49		—
Total non-U.S. corporate		1,444		—			6			13		(23	)		—		(16	)		27		—			1,451		—
Residential mortgage-backed		73		—			—			22		—			—		(1	)		—		(8	)		86		—
Commercial mortgage-backed		52		(1	)		(2	)		14		—			—		—			—		(41	)		22		—
Other asset-backed		150		(1	)		1			52		—			—		(5	)		44		(16	)		225		—
Total fixed maturity securities		4,317		20			(60	)		153		(41	)		—		(234	)		79		(85	)		4,149		5
Equity securities		48		—			—			—		(1	)		—		—			—		(3	)		44		—
Other invested assets:
Derivative assets:
Equity index options		81		16			—			15		—			—		(31	)		—		—			81		13
Total derivative assets		81		16			—			15		—			—		(31	)		—		—			81		13
Total other invested assets		81		16			—			15		—			—		(31	)		—		—			81		13
Reinsurance recoverable (2)		15		(1	)		—			—		—			—		—			—		—			14		(1	)
Total Level 3 assets	$	4,461	$	35		$	(60	)	$	168	$	(42	)	$	—	$	(265	)	$	79	$	(88	)	$	4,288	$	17

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

(Amounts in millions)	Beginning balance as of July 1, 2016		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2016		Total gains (losses) included in net income (loss) attributable to assets still held
			Included in net income (loss)			Included in OCI
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	2	$	—		$	—		$	—	$	—		$	—	$	—		$	—	$	—		$	2	$	—
State and political subdivisions		36		1			—			—		—			—		—			—		(1	)		36		1
U.S. corporate:
Utilities		552		1			4			54		(6	)		—		(1	)		1		(43	)		562		—
Energy		208		—			3			—		—			—		(8	)		—		(1	)		202		—
Finance and insurance		775		4			14			27		(5	)		—		(32	)		37		—			820		5
Consumer—non-cyclical		102		—			1			5		(5	)		—		—			—		—			103		—
Technology and communications		40		1			—			12		—			—		—			—		—			53		1
Industrial		78		—			—			—		—			—		—			—		—			78		—
Capital goods		135		—			1			—		—			—		—			—		—			136		1
Consumer—cyclical		254		—			—			19		(5	)		—		(1	)		1		(3	)		265		—
Transportation		129		—			1			—		—			—		(6	)		—		—			124		—
Other		147		—			—			—		—			—		(1	)		16		—			162		—
Total U.S. corporate		2,420		6			24			117		(21	)		—		(49	)		55		(47	)		2,505		7
Non-U.S. corporate:
Utilities		331		—			1			52		(5	)		—		—			—		(10	)		369		—
Energy		234		—			9			8		(9	)		—		(17	)		—		—			225		—
Finance and insurance		201		—			3			11		(1	)		—		—			—		—			214		—
Consumer—non-cyclical		168		2			(1	)		3		(3	)		—		(37	)		12		—			144		—
Technology and communications		80		—			1			2		(2	)		—		—			—		—			81		—
Industrial		95		—			2			17		(17	)		—		—			15		—			112		—
Capital goods		212		1			(2	)		—		—			—		(5	)		—		(33	)		173		1
Consumer—cyclical		71		—			—			—		—			—		—			—		—			71		—
Transportation		186		1			(1	)		—		—			—		(14	)		1		—			173		—
Other		29		(2	)		2			—		(12	)		—		—			10		—			27		(2	)
Total non-U.S. corporate		1,607		2			14			93		(49	)		—		(73	)		38		(43	)		1,589		(1	)
Residential mortgage-backed		96		—			—			—		(45	)		—		(8	)		5		(11	)		37		—
Commercial mortgage-backed		33		—			(3	)		—		—			—		—			—		(2	)		28		—
Other asset-backed		198		(6	)		7			—		(5	)		—		(5	)		25		(64	)		150		(6	)
Total fixed maturity securities		4,392		3			42			210		(120	)		—		(135	)		123		(168	)		4,347		1
Equity securities		44		—			—			2		—			—		—			—		—			46		—
Other invested assets:
Derivative assets:
Equity index options		57		9			—			15		—			—		(20	)		—		—			61		—
Other foreign currency contracts		1		—			—			—		—			—		—			—		—			1		—
Total derivative assets		58		9			—			15		—			—		(20	)		—		—			62		—
Total other invested assets		58		9			—			15		—			—		(20	)		—		—			62		—
Restricted other invested assets related to securitization entities		131		—			—			—		—			—		—			—		—			131		—
Reinsurance recoverable (2)		26		(3	)		—			—		—			1		—			—		—			24		(3	)
Total Level 3 assets	$	4,651	$	9		$	42		$	227	$	(120	)	$	1	$	(155	)	$	123	$	(168	)	$	4,610	$	(2	)

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

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 or for the dates indicated:

(Amounts in millions)	Beginning balance as of January 1, 2017		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2017		Total gains (losses) included in net income (loss) attributable to assets still held
			Included in net income (loss)			Included in OCI
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	2	$	—		$	—		$	—	$	—		$	—	$	(1	)	$	—	$	—		$	1	$	—
State and political subdivisions		37		2			(2	)		—		—			—		—			—		—			37		2
U.S. corporate:
Utilities		576		—			20			70		—			—		(4	)		30		(30	)		662		—
Energy		210		(1	)		6			—		(10	)		—		(32	)		1		(16	)		158		(1	)
Finance and insurance		786		11			(1	)		75		(31	)		—		(163	)		8		(15	)		670		10
Consumer—non-cyclical		121		—			2			4		—			—		—			—		—			127		—
Technology and
communications		54		2			3			14		—			—		(1	)		—		(20	)		52		2
Industrial		48		—			—			13		—			—		—			—		(14	)		47		—
Capital goods		152		1			3			—		—			—		(1	)		—		(37	)		118		1
Consumer—cyclical		258		—			9			2		—			—		(5	)		—		(2	)		262		—
Transportation		139		17			(5	)		—		—			—		(48	)		—		(42	)		61		1
Other		143		—			1			—		(4	)		—		(7	)		37		—			170		—
Total U.S. corporate		2,487		30			38			178		(45	)		—		(261	)		76		(176	)		2,327		13
Non-U.S. corporate:
Utilities		386		—			5			30		—			—		—			—		(62	)		359		—
Energy		206		—			6			—		(1	)		—		(1	)		—		(33	)		177		—
Finance and insurance		182		4			9			4		—			—		(30	)		—		—			169		2
Consumer—non-cyclical		139		—			2			—		—			—		(12	)		—		—			129		—
Technology and
communications		67		1			1			—		(21	)		—		(19	)		—		—			29		—
Industrial		109		—			3			13		—			—		—			14		—			139		—
Capital goods		169		—			3			—		—			—		(15	)		—		(7	)		150		—
Consumer—cyclical		69		—			—			—		—			—		(2	)		2		—			69		—
Transportation		181		—			4			6		—			—		(10	)		11		(11	)		181		—
Other		25		(2	)		2			15		(2	)		—		—			11		—			49		—
Total non-U.S. corporate		1,533		3			35			68		(24	)		—		(89	)		38		(113	)		1,451		2
Residential mortgage-backed		43		—			1			26		—			—		(2	)		26		(8	)		86		—
Commercial mortgage-backed		54		(2	)		4			23		(9	)		—		—			—		(48	)		22		—
Other asset-backed		145		(8	)		11			116		(35	)		—		(12	)		58		(50	)		225		—
Total fixed maturity securities		4,301		25			87			411		(113	)		—		(365	)		198		(395	)		4,149		17
Equity securities		47		—			—			1		(1	)		—		—			—		(3	)		44		—
Other invested assets:
Derivative assets:
Equity index options		72		42			—			36		—			—		(69	)		—		—			81		21
Other foreign currency contracts		3		(3	)		—			—		—			—		—			—		—			—		(2	)
Total derivative assets		75		39			—			36		—			—		(69	)		—		—			81		19
Total other invested assets		75		39			—			36		—			—		(69	)		—		—			81		19
Restricted other invested assets related to securitization entities		131		—			—			—		(131	)		—		—			—		—			—		—
Reinsurance recoverable (2)		16		(3	)		—			—		—			1		—			—		—			14		(3	)
Total Level 3 assets	$	4,570	$	61		$	87		$	448	$	(245	)	$	1	$	(434	)	$	198	$	(398	)	$	4,288	$	33

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

	Beginning balance as of January 1, 2016		Total realized and unrealized gains (losses)																Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2016		Total gains (losses) included in net income (loss) attributable to assets still held
(Amounts in millions)			Included in net income (loss)			Included in OCI			Purchases		Sales			Issuances		Settlements
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3	$	—		$	—		$	—	$	—		$	—	$	(1	)	$	—	$	—		$	2	$	—
State and political subdivisions		35		2			(1	)		7		—			—		—			—		(7	)		36		2
U.S. corporate:
Utilities		449		1			28			101		(6	)		—		(9	)		68		(70	)		562		—
Energy		253		—			(1	)		—		—			—		(10	)		7		(47	)		202		—
Finance and insurance		715		12			58			54		(14	)		—		(59	)		72		(18	)		820		11
Consumer—non-cyclical		109		—			7			5		(18	)		—		—			—		—			103		—
Technology and communications		35		2			4			12		—			—		—			—		—			53		2
Industrial		61		—			5			—		—			—		—			12		—			78		—
Capital goods		180		1			6			—		(10	)		—		—			—		(41	)		136		1
Consumer—cyclical		239		4			9			44		(5	)		—		(42	)		19		(3	)		265		—
Transportation		106		1			9			17		—			—		(14	)		5		—			124		1
Other		182		1			1			—		—			—		(5	)		16		(33	)		162		1
Total U.S. corporate		2,329		22			126			233		(53	)		—		(139	)		199		(212	)		2,505		16
Non-U.S. corporate:
Utilities		287		—			9			62		(5	)		—		—			26		(10	)		369		—
Energy		252		—			33			8		(11	)		—		(31	)		—		(26	)		225		—
Finance and insurance		191		2			11			11		(1	)		—		—			—		—			214		2
Consumer—non-cyclical		169		2			9			3		(3	)		—		(48	)		12		—			144		—
Technology and communications		62		—			6			18		(5	)		—		—			—		—			81		—
Industrial		84		—			7			17		(20	)		—		—			24		—			112		—
Capital goods		213		1			7			—		—			—		(15	)		—		(33	)		173		1
Consumer—cyclical		71		—			2			—		—			—		(2	)		—		—			71		—
Transportation		144		1			3			—		—			—		(14	)		39		—			173		—
Other		72		(2	)		4			—		(12	)		—		(7	)		10		(38	)		27		(2	)
Total non-U.S. corporate		1,545		4			91			119		(57	)		—		(117	)		111		(107	)		1,589		1
Residential mortgage-backed		116		—			2			51		(45	)		—		(13	)		13		(87	)		37		—
Commercial mortgage-backed		10		—			1			23		—			—		(4	)		—		(2	)		28		—
Other asset-backed		1,142		(16	)		3			12		(25	)		—		(19	)		66		(1,013	)		150		(16	)
Total fixed maturity securities		5,180		12			222			445		(180	)		—		(293	)		389		(1,428	)		4,347		3
Equity securities		38		—			—			8		—			—		—			—		—			46		—
Other invested assets:
Derivative assets:
Credit default swaps		1		—			—			—		—			—		(1	)		—		—			—		—
Equity index options		30		5			—			51		—			—		(25	)		—		—			61		(4	)
Other foreign currency contracts		3		(2	)		—			1		—			—		(1	)		—		—			1		(2	)
Total derivative assets		34		3			—			52		—			—		(27	)		—		—			62		(6	)
Total other invested assets		34		3			—			52		—			—		(27	)		—		—			62		(6	)
Restricted other invested assets related to securitization entities		232		(55	)		—			—		—			—		(46	)		—		—			131		9
Reinsurance recoverable (2)		17		5			—			—		—			2		—			—		—			24		5
Total Level 3 assets	$	5,501	$	(35	)	$	222		$	505	$	(180	)	$	2	$	(366	)	$	389	$	(1,428	)	$	4,610	$	11

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

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 income statement line item in which these gains and losses were presented for the periods indicated:

	Three months ended September 30,					Nine months ended September 30,
(Amounts in millions)	2017		2016			2017		2016
Total realized and unrealized gains (losses) included in net income (loss):
Net investment income	$	7	$	11		$	22	$	(33	)
Net investment gains (losses)		28		(2	)		39		(2	)
Total	$	35	$	9		$	61	$	(35	)
Total gains (losses) included in net income (loss) attributable to assets still held:
Net investment income	$	5	$	9		$	18	$	23
Net investment gains (losses)		12		(11	)		15		(12	)
Total	$	17	$	(2	)	$	33	$	11

The amount presented for unrealized gains (losses) included in net income (loss) for available-for-sale securities represents impairments and accretion on certain fixed maturity securities.

The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of September 30, 2017:

(Amounts in millions)	Valuation technique		Fair value		Unobservable input		Range		Weighted- average
Fixed maturity securities:
U.S. corporate:
Utilities		Internal models	$	647		Credit spreads		73bps - 379bps		135bps
Energy		Internal models		86		Credit spreads		80bps - 193bps		142bps
Finance and insurance		Internal models		629		Credit spreads		70bps - 354bps		180bps
Consumer—non-cyclical		Internal models		127		Credit spreads		88bps - 247bps		132bps
Technology and communications		Internal models		52		Credit spreads		60bps - 353bps		299bps
Industrial		Internal models		20		Credit spreads		90bps - 207bps		162bps
Capital goods		Internal models		118		Credit spreads		90bps - 247bps		140bps
Consumer—cyclical		Internal models		236		Credit spreads		56bps - 210bps		129bps
Transportation		Internal models		54		Credit spreads		56bps - 123bps		89bps
Other		Internal models		161		Credit spreads		64bps - 135bps		75bps
Total U.S. corporate		Internal models	$	2,130		Credit spreads		56bps - 379bps		146bps
Non-U.S. corporate:
Utilities		Internal models	$	358		Credit spreads		77bps - 158bps		116bps
Energy		Internal models		146		Credit spreads		90bps - 169bps		116bps
Finance and insurance		Internal models		160		Credit spreads		69bps - 179bps		107bps
Consumer—non-cyclical		Internal models		118		Credit spreads		56bps - 191bps		112bps
Technology and communications		Internal models		29		Credit spreads		123bps - 222bps		171bps
Industrial		Internal models		130		Credit spreads		109bps - 247bps		146bps
Capital goods		Internal models		121		Credit spreads		88bps - 145bps		112bps
Consumer—cyclical		Internal models		69		Credit spreads		87bps - 169bps		112bps
Transportation		Internal models		161		Credit spreads		78bps - 210bps		115bps
Other		Internal models		49		Credit spreads		101bps - 233bps		181bps
Total non-U.S. corporate		Internal models	$	1,341		Credit spreads		56bps - 247bps		120bps
Derivative assets:
Equity index options		Discounted cash flows	$	81		Equity index volatility		6% - 27%		18	%

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.

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

	September 30, 2017
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
GMWB embedded derivatives (1)	$	257	$	—	$	—	$	257
Fixed index annuity embedded derivatives		394		—		—		394
Indexed universal life embedded derivatives		14		—		—		14
Total policyholder account balances		665		—		—		665
Derivative liabilities:
Interest rate swaps		39		—		39		—
Equity return swaps		2		—		2		—
Other foreign currency contracts		23		—		23		—
Total derivative liabilities		64		—		64		—
Borrowings related to securitization entities		12		—		—		12
Total liabilities	$	741	$	—	$	64	$	677

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

	December 31, 2016
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
GMWB embedded derivatives (1)	$	303	$	—	$	—	$	303
Fixed index annuity embedded derivatives		344		—		—		344
Indexed universal life embedded derivatives		11		—		—		11
Total policyholder account balances		658		—		—		658
Derivative liabilities:
Interest rate swaps		349		—		349		—
Foreign currency swaps		5		—		5		—
Credit default swaps related to securitization entities		1		—		1		—
Equity return swaps		1		—		1		—
Other foreign currency contracts		27		—		27		—
Total derivative liabilities		383		—		383		—
Borrowings related to securitization entities		12		—		—		12
Total liabilities	$	1,053	$	—	$	383	$	670

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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 or for the dates indicated:

	Beginning balance as of July 1, 2017		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3		Ending balance as of September 30, 2017		Total (gains) losses included in net (income) loss attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	281	$	(31	)	$	—	$	—	$	—	$	7	$	—		$	—	$	—	$	257	$	(31	)
Fixed index annuity embedded derivatives		376		21			—		—		—		—		(3	)		—		—		394		21
Indexed universal life embedded derivatives		13		(2	)		—		—		—		3		—			—		—		14		(2	)
Total policyholder account balances		670		(12	)		—		—		—		10		(3	)		—		—		665		(12	)
Borrowings related to securitization entities		12		—			—		—		—		—		—			—		—		12		—
Total Level 3 liabilities	$	682	$	(12	)	$	—	$	—	$	—	$	10	$	(3	)	$	—	$	—	$	677	$	(12	)

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

(Amounts in millions)	Beginning balance as of July 1, 2016		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3		Ending balance as of September 30, 2016		Total (gains) losses included in net (income) loss attributable to liabilities still held
			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	494	$	(63	)	$	—	$	—	$	—	$	8	$	—		$	—	$	—	$	439	$	(59	)
Fixed index annuity embedded derivatives		351		16			—		—		—		—		(3	)		—		—		364		16
Indexed universal life embedded derivatives		13		(3	)		—		—		—		3		—			—		—		13		(3	)
Total policyholder account balances		858		(50	)		—		—		—		11		(3	)		—		—		816		(46	)
Borrowings related to securitization entities		11		—			—		—		—		—		—			—		—		11		—
Total Level 3 liabilities	$	869	$	(50	)	$	—	$	—	$	—	$	11	$	(3	)	$	—	$	—	$	827	$	(46	)

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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 or for the dates indicated:

	Beginning balance as of January 1, 2017		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3		Ending balance as of September 30, 2017		Total (gains) losses included in net (income) loss attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	303	$	(67	)	$	—	$	—	$	—	$	21	$	—		$	—	$	—	$	257	$	(64	)
Fixed index annuity embedded derivatives		344		57			—		—		—		—		(7	)		—		—		394		57
Indexed universal life embedded derivatives		11		(5	)		—		—		—		8		—			—		—		14		(5	)
Total policyholder account balances		658		(15	)		—		—		—		29		(7	)		—		—		665		(12	)
Borrowings related to securitization entities		12		1			—		—		—		—		(1	)		—		—		12		1
Total Level 3 liabilities	$	670	$	(14	)	$	—	$	—	$	—	$	29	$	(8	)	$	—	$	—	$	677	$	(11	)

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

	Beginning balance as of January 1, 2016		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3			Ending balance as of September 30, 2016		Total (gains) losses included in net (income) loss attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	352	$	63		$	—	$	—	$	—	$	24	$	—		$	—	$	—		$	439	$	72
Fixed index annuity embedded derivatives		342		22			—		—		—		10		(10	)		—		—			364		22
Indexed universal life embedded derivatives		10		(6	)		—		—		—		9		—			—		—			13		(6	)
Total policyholder account balances		704		79			—		—		—		43		(10	)		—		—			816		88
Derivative liabilities:
Credit default swaps related to securitization entities		14		(13	)		—		—		—		—		2			—		(3	)		—		—
Total derivative liabilities		14		(13	)		—		—		—		—		2			—		(3	)		—		—
Borrowings related to securitization entities		81		(65	)		—		—		—		—		(5	)		—		—			11		—
Total Level 3 liabilities	$	799	$	1		$	—	$	—	$	—	$	43	$	(13	)	$	—	$	(3	)	$	827	$	88

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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 income statement line item in which these gains and losses were presented for the periods indicated:

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Total realized and unrealized (gains) losses included in net (income) loss:
Net investment income	$	—		$	—		$	—		$	—
Net investment (gains) losses		(12	)		(50	)		(14	)		1
Total	$	(12	)	$	(50	)	$	(14	)	$	1
Total (gains) losses included in net (income) loss attributable to liabilities still held:
Net investment income	$	—		$	—		$	—		$	—
Net investment (gains) losses		(12	)		(46	)		(11	)		88
Total	$	(12	)	$	(46	)	$	(11	)	$	88

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, equity and trading securities and purchases, issuances and settlements of derivative instruments.

Issuances presented for GMWB embedded derivative liabilities are characterized as the change in fair value associated with the product fees recognized that are attributed to the embedded derivative to equal the expected future benefit costs upon issuance. Issuances for fixed index 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.

The following table presents a summary of the significant unobservable inputs used for certain liability fair value measurements that are based on internal models and classified as Level 3 as of September 30, 2017:

(Amounts in millions)	Valuation technique		Fair value		Unobservable input		Range		Weighted- average
Policyholder account balances:
						Withdrawal utilization rate		40% - 84%		65%
						Lapse rate		—  % - 8%		4%
						Non-performance risk (credit spreads)		26bps - 83bps		66bp	s
GMWB embedded derivatives (1)		Stochastic cash flow model		$257		Equity index volatility		13% - 24%		20%
Fixed index annuity embedded derivatives		Option budget method		$394		Expected future interest credited		—  % - 2%		1%
Indexed universal life embedded derivatives		Option budget method		$14		Expected future interest credited		3% - 8%		5%

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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Deferred Acquisition Costs

9 Months Ended

Sep. 30, 2017

Deferred Acquisition Costs

(7) Deferred Acquisition Costs

The following table presents the activity impacting deferred acquisition costs (“DAC”) for the dates indicated:

	As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016
Unamortized beginning balance	$	4,241		$	4,569
Impact of foreign currency translation		12			8
Costs deferred		67			124
Amortization, net of interest accretion		(261	)		(257	)
Unamortized ending balance		4,059			4,444
Accumulated effect of net unrealized investment (gains) losses		(1,717	)		(462	)
Ending balance	$	2,342		$	3,982

We regularly review DAC to determine if it is recoverable from future income. In 2017 and 2016, we performed loss recognition testing and determined that we had premium deficiencies in our fixed immediate annuity products. As of June 30, 2016, we wrote off the entire DAC balance for our fixed immediate annuity products of $14 million through amortization. In addition, as a result of our fixed immediate annuity loss recognition testing as of September 30, 2017 and 2016, we increased our future policy benefit reserves and recognized expenses of $31 million and $24 million, respectively. The premium deficiency test results were primarily driven by the low interest rate environment. As of September 30, 2017, we believe all of our other businesses had sufficient future income and therefore the related DAC was recoverable.

In addition, we are required to analyze the impacts from net unrealized investment gains and losses on our available-for-sale investment securities backing insurance liabilities, as if those unrealized investment gains and losses were realized. These “shadow accounting” adjustments result in the recognition of unrealized gains and losses on related insurance assets and liabilities in a manner consistent with the recognition of the unrealized gains and losses on available-for-sale investment securities within the statements of comprehensive income and changes in equity. Changes to net unrealized investment (gains) losses may increase or decrease the ending DAC balance. Similar to a loss recognition event, when the DAC balance is reduced to zero, additional insurance liabilities are established if necessary. Unlike a loss recognition event, based on changes in net unrealized investment (gains) losses, these shadow adjustments may reverse from period to period. As of September 30, 2017, due primarily to the decline in interest rates increasing unrealized investments gains, we reduced the DAC balance of our long-term care insurance business to zero, a cumulative decrease in the accumulated effect of net unrealized investment gains of approximately $1.3 billion out of the total $1.7 billion in the table above, with an offsetting amount recorded in other comprehensive income (loss). In addition, we increased our future policy benefit reserves in our long-term care insurance business by approximately $333 million as of September 30, 2017, with an offsetting amount recorded in other comprehensive income (loss). There was no impact to net income (loss).

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Liability for Policy and Contract Claims

9 Months Ended

Sep. 30, 2017

Liability for Policy and Contract Claims

(8) Liability for Policy and Contract Claims

The following table sets forth changes in our liability for policy and contract claims as of the dates indicated:

	As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016
Beginning balance	$	9,256		$	8,095
Less reinsurance recoverables		(2,409	)		(2,122	)
Net beginning balance		6,847			5,973
Incurred related to insured events of:
Current year		2,748			2,569
Prior years		(306	)		320
Total incurred		2,442			2,889
Paid related to insured events of:
Current year		(755	)		(727	)
Prior years		(1,746	)		(1,646	)
Total paid		(2,501	)		(2,373	)
Interest on liability for policy and contract claims		223			188
Foreign currency translation		27			14
Net ending balance		7,038			6,691
Add reinsurance recoverables		2,346			2,178
Ending balance	$	9,384		$	8,869

The liability for policy and contract claims represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and adverse trends, could possibly be significant, and result in increases in reserves by an amount that could be material to our results of operations and financial condition and liquidity.

As of the nine months ended September 30, 2017, the favorable development of $306 million related to insured events of prior years was primarily attributable to favorable claim terminations in our long-term care insurance business. Our mortgage insurance businesses also experienced favorable prior year claim development mostly from an improvement in net cures and aging of existing claims, as well as lower delinquencies and an improvement in the estimated claim severity or amount.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Taxes

(9) Income Taxes

The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated:

	Three months ended September 30,										Nine months ended September 30,
(Amounts in millions)	2017					2016					2017					2016
Pre-tax income (loss)	$	286				$	(125	)			$	1,019				$	376
Statutory U.S. federal income tax rate	$	100		35.0	%	$	(44	)	35.0	%	$	357		35.0	%	$	132		35.0	%
Increase (reduction) in rate resulting from:
State income tax, net of federal income tax effect		1		0.1			—		—			(2	)	(0.2	)		1		0.2
Tax favored investments		6		1.9			1		(0.7	)		3		0.3			(2	)	(0.5	)
Effect of foreign operations		(6	)	(2.0	)		5		(3.9	)		(14	)	(1.3	)		(12	)	(3.3	)
Non-deductible expenses		—		—			(1	)	0.5			1		0.1			(1	)	(0.1	)
Valuation allowance		—		—			265		(212.9	)		—		—			240		63.8
Stock-based compensation		1		0.5			2		(1.8	)		3		0.2			5		1.4
Loss on sale of business		—		—			—		—			—		—			(1	)	(0.2	)
Other, net		—		—			(6	)	4.8			—		—			(7	)	(1.8	)
Effective rate	$	102		35.5	%	$	222		(179.0	)%	$	348		34.1	%	$	355		94.5	%

The effective tax rate for the three and nine months ended September 30, 2017 was impacted by higher tax benefits from lower taxed foreign income. The effective tax rate for the three and nine months ended September 30, 2016 was impacted by a valuation allowance of $265 million recorded on deferred tax assets related to foreign tax credits that we no longer expect to realize. The effective tax rate for the nine months ended September 30, 2016 was also impacted by the reversal of a deferred tax valuation allowance related to our mortgage insurance business in Europe due to taxable gains supporting the recognition of these deferred tax assets in the prior year.

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Segment Information

9 Months Ended

Sep. 30, 2017

Segment Information

(10) Segment Information

We have the following five operating business segments: U.S. Mortgage Insurance; Canada Mortgage Insurance; Australia Mortgage Insurance; U.S Life Insurance (which includes our long-term care insurance, life insurance and fixed annuities businesses); and Runoff (which includes the results of non-strategic products which have not been actively sold). In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations.

We allocate our consolidated provision for income taxes to our operating segments. Our allocation methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.

We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income (loss) and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding the after-tax effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. We exclude net investment gains (losses) and infrequent or unusual non-operating items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A component of our net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders because, in our opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders if, in our opinion, they are not indicative of overall operating trends.

While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) attributable to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders assume a 35% tax rate (unless otherwise indicated) and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves.

We recorded a pre-tax expense of $1 million in both the third and first quarters of 2017 related to restructuring costs as the company continues to evaluate and appropriately size its organizational needs and expenses.

In the third quarter of 2016, we recorded a pre-tax expense of $2 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses.

In the second quarter of 2016, we completed the sale of our mortgage insurance business in Europe and recorded an additional pre-tax loss of $2 million; we completed the sale of our term life insurance new business platform and recorded a pre-tax gain of $12 million; we settled restricted borrowings related to a securitization entity and recorded a $64 million pre-tax gain related to the early extinguishment of debt; and we recorded a pre-tax expense of $5 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses.

In the first quarter of 2016, we recorded a pre-tax loss of $7 million and a tax benefit of $27 million related to the planned sale of our mortgage insurance business in Europe; we paid a pre-tax make-whole expense of $20 million related to the early redemption of Genworth Holdings’ 2016 notes; we also repurchased $28 million principal amount of Genworth Holdings’ notes with various maturity dates for a pre-tax gain of $4 million; we completed a life block transaction resulting in a pre-tax loss of $9 million in connection with the early extinguishment of non-recourse funding obligations; and we recorded a pre-tax expense of $15 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses.

There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented other than the following item. We incurred fees during the first quarter of 2016 related to Genworth Holdings’ bond consent solicitation of $18 million for broker, advisor and investment banking fees.

The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated:

	Three months ended September 30,					Nine months ended September 30,
(Amounts in millions)	2017		2016			2017			2016
Revenues:
U.S. Mortgage Insurance segment	$	194	$	186		$	570		$	537
Canada Mortgage Insurance segment		220		156			593			463
Australia Mortgage Insurance segment		98		115			317			333
U.S. Life Insurance segment:
Long-term care insurance		1,033		980			3,063			3,051
Life insurance		389		418			1,217			953
Fixed annuities		190		218			605			613
U.S. Life Insurance segment		1,612		1,616			4,885			4,617
Runoff segment		90		84			266			218
Corporate and Other activities		1		(7	)		(22	)		3
Total revenues	$	2,215	$	2,150		$	6,609		$	6,171

The increase in total revenues for the nine months ended September 30, 2017 was primarily attributable to our U.S. Life Insurance segment driven mostly by a life block transaction in our life insurance business in the first quarter of 2016, under which we initially ceded $326 million of certain term life insurance premiums.

The following tables present the reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated:

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	107		$	(380	)	$	464		$	(155	)
Add: net income attributable to noncontrolling interests		68			48			198			151
Net income (loss)		175			(332	)		662			(4	)
Income (loss) from discontinued operations, net of taxes		(9	)		15			(9	)		(25	)
Income (loss) from continuing operations		184			(347	)		671			21
Less: income from continuing operations attributable to noncontrolling interests		68			48			198			151
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders		116			(395	)		473			(130	)
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net (1)		(62	)		(18	)		(161	)		(38	)
(Gains) losses from sale of businesses		—			—			—			(3	)
(Gains) losses on early extinguishment of debt, net		—			—			—			(48	)
Losses from life block transactions		—			—			—			9
Expenses related to restructuring		1			2			2			22
Fees associated with bond consent solicitation		—			—			—			18
Taxes on adjustments		21			6			56			(9	)
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders	$	76		$	(405	)	$	370		$	(179	)

⁽¹⁾ For the three months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for net investment (gains) losses attributable to noncontrolling interests of $23 million and $2 million, respectively. For the nine months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(15) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $59 million and $8 million, respectively.

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:
U.S. Mortgage Insurance segment	$	73		$	67		$	237		$	189
Canada Mortgage Insurance segment		37			36			114			107
Australia Mortgage Insurance segment		12			14			37			48
U.S. Life Insurance segment:
Long-term care insurance		(5	)		(270	)		42			(199	)
Life insurance		(9	)		48			6			110
Fixed annuities		13			15			43			28
U.S. Life Insurance segment		(1	)		(207	)		91			(61	)
Runoff segment		13			12			38			22
Corporate and Other activities		(58	)		(327	)		(147	)		(484	)
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders	$	76		$	(405	)	$	370		$	(179	)

The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated:

(Amounts in millions)	September 30, 2017		December 31, 2016
Assets:
U.S. Mortgage Insurance segment	$	3,015	$	2,674
Canada Mortgage Insurance segment		5,435		4,884
Australia Mortgage Insurance segment		2,814		2,619
U.S. Life Insurance segment		81,858		81,933
Runoff segment		11,149		11,352
Corporate and Other activities		358		1,196
Total assets	$	104,629	$	104,658

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies

(11) Commitments and Contingencies

(a) Litigation and Regulatory Matters

We face the risk of litigation and regulatory investigations and actions in the ordinary course of operating our businesses, including the risk of class action lawsuits. Our pending legal and regulatory actions include proceedings specific to us and others generally applicable to business practices in the industries in which we operate. In our insurance operations, we are, have been, or may become subject to class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, increases to in-force long-term care insurance premiums, payment of contingent or other sales commissions, claims payments and procedures, product design, product disclosure, product administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, recommending unsuitable products to customers, our pricing structures and business practices in our mortgage insurance businesses, such as captive reinsurance arrangements with lenders and contract underwriting services, violations of the Real Estate Settlement and Procedures Act of 1974 or related state anti-inducement laws, and mortgage insurance policy rescissions and curtailments, and breaching fiduciary or other duties to customers, including but not limited to breach of customer information. Plaintiffs in class action and other lawsuits against us may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. In our investment-related operations, we are subject to litigation involving commercial disputes with counterparties. We are also subject to litigation arising out of our general business activities such as our contractual and employment relationships, post-closing obligations associated with previous dispositions and securities lawsuits. In addition, we are also subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and international regulators and other authorities. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our business, financial condition and results of operations. Moreover, even if we ultimately prevail in the litigation, regulatory action or investigation, we could suffer significant reputational harm, which could have an adverse effect on our business, financial condition or results of operations.

In April 2014, Genworth Financial, Inc., its former chief executive officer and its then current chief financial officer were named in a putative class action lawsuit captioned City of Hialeah Employees’ Retirement System v. Genworth Financial, Inc., et al., in the United States District Court for the Southern District of New York. Plaintiff alleges securities law violations involving certain disclosures in 2012 concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business. The lawsuit seeks unspecified damages, costs and attorneys’ fees and such equitable/injunctive relief as the court may deem proper. The United States District Court for the Southern District of New York appointed City of Hialeah Employees’ Retirement System and New Bedford Contributory Retirement System as lead plaintiffs and designated the caption of the action as In re Genworth Financial, Inc. Securities Litigation. On October 3, 2014, the lead plaintiffs filed an amended complaint. On December 2, 2014, we filed a motion to dismiss plaintiffs’ amended complaint. On March 25, 2015, the United States District Court for the Southern District of New York denied the motion but entered an order dismissing the amended complaint with leave to replead. On April 17, 2015, plaintiffs filed a second amended complaint. We filed a motion to dismiss the second amended complaint and on June 16, 2015, the court denied the motion to dismiss. On January 22, 2016, we filed a motion for reconsideration of the court’s June 16, 2015 order denying our motion to dismiss which the court denied on March 3, 2016. On January 29, 2016, plaintiffs filed a motion for class certification which we opposed. On March 7, 2016, the court granted plaintiffs’ motion for class certification. We have exhausted all coverage under our 2014 executive and organizational liability insurance program applicable to this case; therefore, there is no insurance coverage for Genworth with respect to any settlement or judgment amount related to this litigation. The parties engaged in settlement discussions. On March 21, 2017 in connection with those discussions, we reached an agreement in principle to settle the action, subject to the execution of a stipulation and agreement of settlement that provides a full release of all defendants in connection with the allegations made in the lawsuit, and for a settlement payment to the class of $20 million, inclusive of all plaintiffs’ attorneys fees and expenses and settlement costs, and subject further to the approval of the court. Subsequently, the parties executed a stipulation and agreement of settlement. We believe that the plaintiffs’ claims are without merit, but we are settling the lawsuit to avoid the burden, risk and expense of further litigation. On June 21, 2017, plaintiffs filed the stipulation and agreement of settlement and motion for preliminary approval with the court. On July 28, 2017, the court held a preliminary approval hearing, preliminarily approved the settlement, and set November 15, 2017 for a final approval hearing.

In January 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by International Union of Operating Engineers Local No. 478 Pension Fund, Richard L. Salberg and David Pinkoski in the Court of Chancery of the State of Delaware. The case was captioned Int’l Union of Operating Engineers Local No. 478 Pension Fund, et al v. McInerney, et al. In February 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a second shareholder derivative suit filed by Martin Cohen in the Court of Chancery of the State of Delaware. The case was captioned Cohen v. McInerney, et al. On February 23, 2016, the Court of Chancery of the State of Delaware consolidated these derivative suits under the caption Genworth Financial, Inc. Consolidated Derivative Litigation. On March 28, 2016, plaintiffs in the consolidated action filed an amended complaint. The amended complaint alleges breaches of fiduciary duties concerning Genworth’s long-term care insurance reserves and concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business and seeks unspecified damages, costs, attorneys’ fees and such equitable relief as the court may deem proper. The amended consolidated complaint also adds Genworth’s current chief financial officer as a defendant, based on the current chief financial officer’s alleged conduct in her former capacity as Genworth’s controller and principal accounting officer. We moved to dismiss the consolidated action on May 27, 2016. Thereafter, plaintiffs filed a substantially similar second amended complaint which we moved to dismiss on September 16, 2016. The motion is fully briefed and awaiting disposition by the court.

In October 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its current chief financial officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by Esther Chopp in the Court of Chancery of the State of Delaware. The case is captioned Chopp v. McInerney, et al. The complaint alleges that Genworth’s board of directors wrongfully refused plaintiff’s demand to commence litigation on behalf of Genworth and asserts claims for breaches of fiduciary duties, waste, contribution and indemnification, and unjust enrichment concerning Genworth’s long-term care insurance reserves and concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business, and seeks unspecified damages, costs, attorneys’ fees and such equitable relief as the court may deem proper. We filed a motion to dismiss on November 14, 2016.

In December 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, two former chief financial officers, and two of its insurance subsidiaries were named as defendants in a putative class action lawsuit captioned Leifer, et al v. Genworth Financial, Inc., et al, in the United States District Court for the Eastern District of Virginia, Richmond Division. Plaintiffs allege that the defendants’ financial disclosures and alleged misrepresentations concerning Genworth’s long-term care insurance reserves caused harm to current and former long-term care insurance policyholders and seek unspecified damages, declaratory and injunctive relief, attorneys’ fees, costs and pre-judgment and post-judgment interest. We filed a motion to dismiss on March 27, 2017. Plaintiffs filed an amended complaint on April 10, 2017. We filed a motion to dismiss on May 22, 2017. On June 20, 2017, plaintiffs filed a notice of voluntary dismissal without prejudice. On June 26, 2017, the court so ordered the notice of withdrawal of first amended complaint and of voluntary dismissal without prejudice against all defendants.

In January 2017, two putative stockholder class action lawsuits, captioned Rice v. Genworth Financial Incorporated, et al, and James v. Genworth Financial, Inc. et al, were filed in the United States District Court for the Eastern District of Virginia, Richmond Division, against Genworth and its board of directors. A third putative stockholder class action lawsuit captioned Rosenfeld Family Trust v. Genworth Financial, Inc. et al, was filed in the United States District Court for the District of Delaware against Genworth and its board of directors. In February 2017, a fourth putative class action lawsuit captioned Chopp v. Genworth Financial, Inc. et al, was filed in the United States District Court for the District of Delaware against Genworth and its board of directors and a fifth putative class action lawsuit captioned Ratliff v. Genworth Financial, Inc. et al, was filed in the United States District Court for the Eastern District of Virginia, Richmond Division, against Genworth and its board of directors. The complaints in all five actions allege, among other things, that the preliminary proxy statement filed by Genworth with the SEC on December 21, 2016 contains false and/or materially misleading statements and/or omits material information. The complaints assert claims under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, and seek equitable relief, including declaratory and injunctive relief, and an award of attorneys’ fees and expenses. On February 2, 2017, the plaintiff in Rice filed a motion for a preliminary injunction to enjoin the transaction described in the preliminary proxy. On February 10, 2017, defendants filed an opposition to the preliminary injunction motion in the Rice action. Also on February 10, 2017, the plaintiff in Rosenfeld Family Trust filed a motion for a preliminary injunction to enjoin the transaction described in the preliminary proxy. On February 14, 2017, defendants filed a motion to transfer the Rosenfeld Family Trust action to the Eastern District of Virginia. On February 15, 2017, defendants filed a motion to transfer the Chopp action to the Eastern District of Virginia. On February 21, 2017, the parties to the Eastern District of Virginia actions (Rice, James and Ratliff) reached an agreement in principle to resolve the pending preliminary injunction motion in the Eastern District of Virginia through additional disclosure prior to the March 7, 2017 stockholder vote on the proposed merger transaction. On February 22, 2017, the plaintiffs in the Eastern District of Virginia withdrew their preliminary injunction motion in consideration of the agreed disclosures to be filed in a Form 8-K by February 24, 2017. Also on February 22, 2017, the court in the District of Delaware suspended briefing on the motion for preliminary injunction in the Rosenfeld Family Trust action and entered an order transferring the Rosenfeld Family Trust and Chopp actions to the Eastern District of Virginia. On February 23, 2017, the court in the Eastern District of Virginia set the Rosenfeld Family Trust preliminary injunction motion for a hearing on March 1, 2017. On February 26, 2017, defendants filed an opposition to the preliminary injunction motion in the Rosenfeld Family Trust action. On February 27, 2017, the parties in the Rosenfeld Family Trust action reached an agreement in principle to resolve the pending preliminary injunction motion in the Rosenfeld Family Trust action through additional disclosure prior to the March 7, 2017 stockholder vote on the proposed merger transaction, and the plaintiff in the Rosenfeld Family Trust action withdrew its preliminary injunction motion in consideration of the agreed disclosures as filed in a Form 8-K on February 28, 2017. On March 6, 2017, the court in the Eastern District of Virginia entered an order setting a schedule for proceedings to appoint a lead plaintiff and lead counsel for the purported class action. On March 7, 2017, the court in the Eastern District of Virginia consolidated the Rice, James, Ratliff, Rosenfeld Family Trust, and Chopp actions. On July 5, 2017, the court in the Eastern District of Virginia heard oral argument on the motion to appoint a lead plaintiff and lead counsel. On August 25, 2017, the court in the Eastern District of Virginia entered an order appointing the plaintiffs Alexander Rice and Brian James as lead plaintiffs and their counsel as lead counsel.

In April 2017, one of our insurance subsidiaries, Genworth Life and Annuity Insurance Company (“GLAIC”) was named as a defendant in a putative class action lawsuit captioned Avazian, et al v. Genworth Life and Annuity Insurance Company, et al, in the United States District Court for the Central District of California. Plaintiff alleges breach of contract and breach of the covenant of good faith and fair dealing based upon GLAIC’s termination of plaintiff’s life insurance policy for nonpayment of premium. Plaintiff alleges that the termination for nonpayment of premium failed to comply with certain notice requirements of the California Insurance Code and seeks certification as a California class action on behalf of all insureds and beneficiaries of life insurance policies issued or delivered by GLAIC in California before January 1, 2013 who lost either their coverage or their ability to make a claim because of the termination of their policies by GLAIC for nonpayment of premium, and further seeks unspecified damages, pre-judgment and post-judgment interest, punitive damages, fees, costs and such other relief as the court deems just and proper. On June 23, 2017, we filed a motion to dismiss the complaint. On July 10, 2017, the plaintiff filed a notice of voluntary dismissal without prejudice. On July 12, 2017, the court ordered that this action and all claims therein, are dismissed in their entirety without prejudice. In August 2017, plaintiff re-filed a similar putative class action lawsuit, along with another plaintiff, Michael Torres, captioned Avazian, et al v. Genworth Life and Annuity Insurance Company, et al, in the Superior Court for the State of California, County of Los Angeles, naming GLAIC as a defendant. Plaintiffs allege similar causes of action as the previously dismissed lawsuit, and have added a claim for alleged violation of California Business and Professions Code. On August 31, 2017, we filed notice of the removal of this matter to the United States District Court for the Central District of California and on October 6, 2017, filed a motion to dismiss the complaint. We intend to vigorously defend the action.

At this time, other than as noted above, we cannot determine or predict the ultimate outcome of any of the pending legal and regulatory matters specifically identified above or the likelihood of potential future legal and regulatory matters against us. Except as disclosed above, we also are not able to provide an estimate or range of reasonably possible losses related to these matters. Therefore, we cannot ensure that the current investigations and proceedings will not have a material adverse effect on our business, financial condition or results of operations. In addition, it is possible that related investigations and proceedings may be commenced in the future, and we could become subject to additional unrelated investigations and lawsuits. Increased regulatory scrutiny and any resulting investigations or proceedings could result in new legal precedents and industry-wide regulations or practices that could adversely affect our business, financial condition and results of operations.

(b) Commitments

As of September 30, 2017, we were committed to fund $319 million in limited partnership investments, $40 million in U.S. commercial mortgage loan investments and $21 million in private placement investments.

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Changes in Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2017

Changes in Accumulated Other Comprehensive Income

(12) Changes in Accumulated Other Comprehensive Income

The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated:

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of July 1, 2017	$	1,180		$	2,064		$	(149	)	$	3,095
OCI before reclassifications		(70	)		10			81			21
Amounts reclassified from (to) OCI		(19	)		(22	)		—			(41	)
Current period OCI		(89	)		(12	)		81			(20	)
Balances as of September 30, 2017 before noncontrolling interests		1,091			2,052			(68	)		3,075
Less: change in OCI attributable to noncontrolling interests		(17	)		—			57			40
Balances as of September 30, 2017	$	1,108		$	2,052		$	(125	)	$	3,035

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of July 1, 2016	$	2,789		$	2,439		$	(140	)	$	5,088
OCI before reclassifications		86			72			(1	)		157
Amounts reclassified from (to) OCI		(9	)		(18	)		—			(27	)
Current period OCI		77			54			(1	)		130
Balances as of September 30, 2016 before noncontrolling interests		2,866			2,493			(141	)		5,218
Less: change in OCI attributable to noncontrolling interests		6			—			10			16
Balances as of September 30, 2016	$	2,860		$	2,493		$	(151	)	$	5,202

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of January 1, 2017	$	1,262		$	2,085		$	(253	)	$	3,094
OCI before reclassifications		(95	)		29			261			195
Amounts reclassified from (to) OCI		(77	)		(62	)		—			(139	)
Current period OCI		(172	)		(33	)		261			56
Balances as of September 30, 2017 before noncontrolling interests		1,090			2,052			8			3,150
Less: change in OCI attributable to noncontrolling interests		(18	)		—			133			115
Balances as of September 30, 2017	$	1,108		$	2,052		$	(125	)	$	3,035

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of January 1, 2016	$	1,254		$	2,045		$	(289	)	$	3,010
OCI before reclassifications		1,692			507			223			2,422
Amounts reclassified from (to) OCI		(62	)		(59	)		—			(121	)
Current period OCI		1,630			448			223			2,301
Balances as of September 30, 2016 before noncontrolling interests		2,884			2,493			(66	)		5,311
Less: change in OCI attributable to noncontrolling interests		24			—			85			109
Balances as of September 30, 2016	$	2,860		$	2,493		$	(151	)	$	5,202

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

The foreign currency translation and other adjustments balance included $(5) million and $5 million, respectively, net of taxes of $1 million and $2 million, respectively, related to a net unrecognized postretirement benefit obligation as of September 30, 2017 and 2016. The amount also includes taxes of $28 million and $37 million, respectively, related to foreign currency translation adjustments as of September 30, 2017 and 2016.

The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented:

	Amount reclassified from accumulated other comprehensive income (loss)												Affected line item in the consolidated statements of income
	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Net unrealized investment (gains) losses:
Unrealized (gains) losses on investments (1)	$	(29	)	$	(13	)	$	(118	)	$	(95	)	Net investment (gains) losses
Provision for income taxes		10			4			41			33		Provision for income taxes
Total	$	(19	)	$	(9	)	$	(77	)	$	(62	)
Derivatives qualifying as hedges:
Interest rate swaps hedging assets	$	(34	)	$	(27	)	$	(95	)	$	(80	)	Net investment income
Interest rate swaps hedging assets		—			—			(2	)		(1	)	Net investment (gains) losses
Inflation indexed swaps		—			—			—			(2	)	Net investment income
Inflation indexed swaps		—			—			—			(7	)	Net investment (gains) losses
Provision for income taxes		12			9			35			31		Provision for income taxes
Total	$	(22	)	$	(18	)	$	(62	)	$	(59	)

⁽¹⁾ Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.

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Condensed Consolidating Financial Information

9 Months Ended

Sep. 30, 2017

Condensed Consolidating Financial Information

(13) Condensed Consolidating Financial Information

Genworth Financial provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding senior notes and the holders of the senior notes, on an unsecured unsubordinated basis, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, each outstanding series of senior notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the senior notes indenture in respect of such senior notes. Genworth Financial also provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding subordinated notes and the holders of the subordinated notes, on an unsecured subordinated basis, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, the outstanding subordinated notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the subordinated notes indenture in respect of the subordinated notes. Genworth Holdings is a direct, 100% owned subsidiary of Genworth Financial.

The following condensed consolidating financial information of Genworth Financial and its direct and indirect subsidiaries have been prepared pursuant to rules regarding the preparation of consolidating financial information of Regulation S-X.

The condensed consolidating financial information presents the condensed consolidating balance sheet information as of September 30, 2017 and December 31, 2016, the condensed consolidating income statement information and the condensed consolidating comprehensive income statement information for the three and nine months ended September 30, 2017 and 2016 and the condensed consolidating cash flows statement information for the nine months ended September 30, 2017 and 2016.

The condensed consolidating financial information reflects Genworth Financial (“Parent Guarantor”), Genworth Holdings (“Issuer”) and each of Genworth Financial’s other direct and indirect subsidiaries (the “All Other Subsidiaries”) on a combined basis, none of which guarantee the senior notes or subordinated notes, as well as the eliminations necessary to present Genworth Financial’s financial information on a consolidated basis and total consolidated amounts.

The accompanying condensed consolidating financial information is presented based on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries and intercompany activity.

The following table presents the condensed consolidating balance sheet information as of September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value	$	—		$	—		$	62,752		$	(200	)	$	62,552
Equity securities available-for-sale, at fair value		—			—			765			—			765
Commercial mortgage loans		—			—			6,268			—			6,268
Restricted commercial mortgage loans related to securitization entities		—			—			111			—			111
Policy loans		—			—			1,818			—			1,818
Other invested assets		—			75			1,517			(2	)		1,590
Investments in subsidiaries		13,191			12,459			—			(25,650	)		—
Total investments		13,191			12,534			73,231			(25,852	)		73,104
Cash and cash equivalents		—			754			2,082			—			2,836
Accrued investment income		—			—			639			—			639
Deferred acquisition costs		—			—			2,342			—			2,342
Intangible assets and goodwill		—			—			315			—			315
Reinsurance recoverable		—			—			17,553			—			17,553
Other assets		—			90			470			(8	)		552
Intercompany notes receivable		—			161			33			(194	)		—
Deferred tax assets		—			—			24			—			24
Separate account assets		—			—			7,264			—			7,264
Total assets	$	13,191		$	13,539		$	103,953		$	(26,054	)	$	104,629
Liabilities and equity
Liabilities:
Future policy benefits	$	—		$	—		$	38,022		$	—		$	38,022
Policyholder account balances		—			—			24,531			—			24,531
Liability for policy and contract claims		—			—			9,384			—			9,384
Unearned premiums		—			—			3,512			—			3,512
Other liabilities		8			163			1,842			(11	)		2,002
Intercompany notes payable		145			232			17			(394	)		—
Borrowings related to securitization entities		—			—			59			—			59
Non-recourse funding obligations		—			—			310			—			310
Long-term borrowings		—			3,722			502			—			4,224
Deferred tax liability		(31	)		(862	)		1,127			—			234
Separate account liabilities		—			—			7,264			—			7,264
Total liabilities		122			3,255			86,570			(405	)		89,542
Equity:
Common stock		1			—			3			(3	)		1
Additional paid-in capital		11,973			9,096			18,381			(27,477	)		11,973
Accumulated other comprehensive income (loss)		3,035			3,040			3,057			(6,097	)		3,035
Retained earnings		760			(1,852	)		(6,376	)		8,228			760
Treasury stock, at cost		(2,700	)		—			—			—			(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		13,069			10,284			15,065			(25,349	)		13,069
Noncontrolling interests		—			—			2,318			(300	)		2,018
Total equity		13,069			10,284			17,383			(25,649	)		15,087
Total liabilities and equity	$	13,191		$	13,539		$	103,953		$	(26,054	)	$	104,629

The following table presents the condensed consolidating balance sheet information as of December 31, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value	$	—		$	—		$	60,772		$	(200	)	$	60,572
Equity securities available-for-sale, at fair value		—			—			632			—			632
Commercial mortgage loans		—			—			6,111			—			6,111
Restricted commercial mortgage loans related to securitization entities		—			—			129			—			129
Policy loans		—			—			1,742			—			1,742
Other invested assets		—			105			1,966			—			2,071
Restricted other invested assets related to securitization entities, at fair value		—			—			312			—			312
Investments in subsidiaries		12,730			12,308			—			(25,038	)		—
Total investments		12,730			12,413			71,664			(25,238	)		71,569
Cash and cash equivalents		—			998			1,786			—			2,784
Accrued investment income		—			—			663			(4	)		659
Deferred acquisition costs		—			—			3,571			—			3,571
Intangible assets and goodwill		—			—			348			—			348
Reinsurance recoverable		—			—			17,755			—			17,755
Other assets		9			134			530			—			673
Intercompany notes receivable		—			84			67			(151	)		—
Deferred tax assets		28			—			(28	)		—			—
Separate account assets		—			—			7,299			—			7,299
Total assets	$	12,767		$	13,629		$	103,655		$	(25,393	)	$	104,658
Liabilities and equity
Liabilities:
Future policy benefits	$	—		$	—		$	37,063		$	—		$	37,063
Policyholder account balances		—			—			25,662			—			25,662
Liability for policy and contract claims		—			—			9,256			—			9,256
Unearned premiums		—			—			3,378			—			3,378
Other liabilities		39			301			2,581			(5	)		2,916
Intercompany notes payable		84			267			—			(351	)		—
Borrowings related to securitization entities		—			—			74			—			74
Non-recourse funding obligations		—			—			310			—			310
Long-term borrowings		—			3,716			464			—			4,180
Deferred tax liability		—			(816	)		869			—			53
Separate account liabilities		—			—			7,299			—			7,299
Total liabilities		123			3,468			86,956			(356	)		90,191
Equity:
Common stock		1			—			—			—			1
Additional paid-in capital		11,962			9,097			20,252			(29,349	)		11,962
Accumulated other comprehensive income (loss)		3,094			3,135			3,116			(6,251	)		3,094
Retained earnings		287			(2,071	)		(8,792	)		10,863			287
Treasury stock, at cost		(2,700	)		—			—			—			(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		12,644			10,161			14,576			(24,737	)		12,644
Noncontrolling interests		—			—			2,123			(300	)		1,823
Total equity		12,644			10,161			16,699			(25,037	)		14,467
Total liabilities and equity	$	12,767		$	13,629		$	103,655		$	(25,393	)	$	104,658

The following table presents the condensed consolidating income statement information for the three months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	1,135		$	—		$	1,135
Net investment income		(1	)		2			800			(4	)		797
Net investment gains (losses)		—			(4	)		89			—			85
Policy fees and other income		—			4			195			(1	)		198
Total revenues		(1	)		2			2,219			(5	)		2,215
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			1,344			—			1,344
Interest credited		—			—			164			—			164
Acquisition and operating expenses, net of deferrals		20			(2	)		247			—			265
Amortization of deferred acquisition costs and intangibles		—			—			83			—			83
Interest expense		—			66			12			(5	)		73
Total benefits and expenses		20			64			1,850			(5	)		1,929
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(21	)		(62	)		369			—			286
Provision (benefit) for income taxes		(5	)		(21	)		128			—			102
Equity in income of subsidiaries		123			71			—			(194	)		—
Income from continuing operations		107			30			241			(194	)		184
Income (loss) from discontinued operations, net of taxes		—			4			(13	)		—			(9	)
Net income		107			34			228			(194	)		175
Less: net income attributable to noncontrolling interests		—			—			68			—			68
Net income available to Genworth Financial, Inc.’s common stockholders	$	107		$	34		$	160		$	(194	)	$	107

The following table presents the condensed consolidating income statement information for the three months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	1,108		$	—		$	1,108
Net investment income		(2	)		1			810			(4	)		805
Net investment gains (losses)		—			(1	)		21			—			20
Policy fees and other income		—			—			217			—			217
Total revenues		(2	)		—			2,156			(4	)		2,150
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			1,662			—			1,662
Interest credited		—			—			173			—			173
Acquisition and operating expenses, net of deferrals		13			—			256			—			269
Amortization of deferred acquisition costs and intangibles		—			—			94			—			94
Interest expense		—			69			12			(4	)		77
Total benefits and expenses		13			69			2,197			(4	)		2,275
Loss from continuing operations before income taxes and equity in loss of subsidiaries		(15	)		(69	)		(41	)		—			(125	)
Provision (benefit) for income taxes		(4	)		155			71			—			222
Equity in loss of subsidiaries		(369	)		(207	)		—			576			—
Loss from continuing operations		(380	)		(431	)		(112	)		576			(347	)
Income from discontinued operations, net of taxes		—			11			4			—			15
Net loss		(380	)		(420	)		(108	)		576			(332	)
Less: net income attributable to noncontrolling interests		—			—			48			—			48
Net loss available to Genworth Financial, Inc.’s common stockholders	$	(380	)	$	(420	)	$	(156	)	$	576		$	(380	)

The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	3,382		$	—		$	3,382
Net investment income		(3	)		5			2,397			(11	)		2,388
Net investment gains (losses)		—			(12	)		232			—			220
Policy fees and other income		—			3			617			(1	)		619
Total revenues		(3	)		(4	)		6,628			(12	)		6,609
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			3,796			—			3,796
Interest credited		—			—			494			—			494
Acquisition and operating expenses, net of deferrals		48			(2	)		729			—			775
Amortization of deferred acquisition costs and intangibles		—			—			316			—			316
Interest expense		—			187			34			(12	)		209
Total benefits and expenses		48			185			5,369			(12	)		5,590
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(51	)		(189	)		1,259			—			1,019
Provision (benefit) for income taxes		(9	)		(65	)		422			—			348
Equity in income of subsidiaries		506			339			—			(845	)		—
Income from continuing operations		464			215			837			(845	)		671
Income (loss) from discontinued operations, net of taxes		—			4			(13	)		—			(9	)
Net income		464			219			824			(845	)		662
Less: net income attributable to noncontrolling interests		—			—			198			—			198
Net income available to Genworth Financial, Inc.’s common stockholders	$	464		$	219		$	626		$	(845	)	$	464

The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	3,029		$	—		$	3,029
Net investment income		(3	)		1			2,386			(11	)		2,373
Net investment gains (losses)		—			(14	)		45			—			31
Policy fees and other income		—			(6	)		745			(1	)		738
Total revenues		(3	)		(19	)		6,205			(12	)		6,171
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			3,715			—			3,715
Interest credited		—			—			523			—			523
Acquisition and operating expenses, net of deferrals		118			38			834			—			990
Amortization of deferred acquisition costs and intangibles		—			—			305			—			305
Interest expense		1			210			63			(12	)		262
Total benefits and expenses		119			248			5,440			(12	)		5,795
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries		(122	)		(267	)		765			—			376
Provision (benefit) for income taxes		(31	)		88			298			—			355
Equity in income (loss) of subsidiaries		(62	)		78			—			(16	)		—
Income (loss) from continuing operations		(153	)		(277	)		467			(16	)		21
Loss from discontinued operations, net of taxes		(2	)		(7	)		(16	)		—			(25	)
Net income (loss)		(155	)		(284	)		451			(16	)		(4	)
Less: net income attributable to noncontrolling interests		—			—			151			—			151
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	(155	)	$	(284	)	$	300		$	(16	)	$	(155	)

The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	107		$	34		$	228		$	(194	)	$	175
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		(72	)		(71	)		(89	)		143			(89	)
Derivatives qualifying as hedges		(12	)		(12	)		(12	)		24			(12	)
Foreign currency translation and other adjustments		24			12			80			(35	)		81
Total other comprehensive income (loss)		(60	)		(71	)		(21	)		132			(20	)
Total comprehensive income (loss)		47			(37	)		207			(62	)		155
Less: comprehensive income attributable to noncontrolling interests		—			—			108			—			108
Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders	$	47		$	(37	)	$	99		$	(62	)	$	47

The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net loss	$	(380	)	$	(420	)	$	(108	)	$	576		$	(332	)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		66			63			73			(130	)		72
Net unrealized gains (losses) on other-than-temporarily impaired securities		5			4			4			(8	)		5
Derivatives qualifying as hedges		54			54			57			(111	)		54
Foreign currency translation and other adjustments		(11	)		(3	)		—			13			(1	)
Total other comprehensive income (loss)		114			118			134			(236	)		130
Total comprehensive income (loss)		(266	)		(302	)		26			340			(202	)
Less: comprehensive income attributable to noncontrolling interests		—			—			64			—			64
Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders	$	(266	)	$	(302	)	$	(38	)	$	340		$	(266	)

The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	464		$	219		$	824		$	(845	)	$	662
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		(155	)		(172	)		(173	)		327			(173	)
Net unrealized gains (losses) on other-than-temporarily impaired securities		1			1			1			(2	)		1
Derivatives qualifying as hedges		(33	)		(33	)		(32	)		65			(33	)
Foreign currency translation and other adjustments		128			109			260			(236	)		261
Total other comprehensive income (loss)		(59	)		(95	)		56			154			56
Total comprehensive income		405			124			880			(691	)		718
Less: comprehensive income attributable to noncontrolling interests		—			—			313			—			313
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders	$	405		$	124		$	567		$	(691	)	$	405

The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(155	)	$	(284	)	$	451	$	(16	)	$	(4	)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		1,600			1,555			1,625		(3,156	)		1,624
Net unrealized gains (losses) on other-than-temporarily impaired securities		6			5			6		(11	)		6
Derivatives qualifying as hedges		448			447			481		(928	)		448
Foreign currency translation and other adjustments		138			65			224		(204	)		223
Total other comprehensive income (loss)		2,192			2,072			2,336		(4,299	)		2,301
Total comprehensive income		2,037			1,788			2,787		(4,315	)		2,297
Less: comprehensive income attributable to noncontrolling interests		—			—			260		—			260
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders	$	2,037		$	1,788		$	2,527	$	(4,315	)	$	2,037

The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	464		$	219		$	824		$	(845	)	$	662
Less loss from discontinued operations, net of taxes		—			(4	)		13			—			9
Adjustments to reconcile net income to net cash from operating activities:
Equity in income from subsidiaries		(506	)		(339	)		—			845			—
Dividends from subsidiaries		—			119			(119	)		—			—
Amortization of fixed maturity securities discounts and premiums and limited partnerships		—			4			(111	)		—			(107	)
Net investment (gains) losses		—			12			(232	)		—			(220	)
Charges assessed to policyholders		—			—			(534	)		—			(534	)
Acquisition costs deferred		—			—			(67	)		—			(67	)
Amortization of deferred acquisition costs and intangibles		—			—			316			—			316
Deferred income taxes		6			(47	)		275			—			234
Trading securities, held-for-sale investments and derivative instruments		—			(46	)		762			—			716
Stock-based compensation expense		23			—			6			—			29
Change in certain assets and liabilities:
Accrued investment income and other assets		2			(2	)		(25	)		4			(21	)
Insurance reserves		—			—			1,202			—			1,202
Current tax liabilities		(6	)		(75	)		54			—			(27	)
Other liabilities, policy and contract claims and other policy-related balances		(29	)		34			(259	)		(6	)		(260	)
Net cash from operating activities		(46	)		(125	)		2,105			(2	)		1,932
Cash flows used by investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		—			—			3,396			—			3,396
Commercial mortgage loans		—			—			454			—			454
Restricted commercial mortgage loans related to securitization entities		—			—			18			—			18
Proceeds from sales of investments:
Fixed maturity and equity securities		—			—			3,269			—			3,269
Purchases and originations of investments:
Fixed maturity and equity securities		—			—			(6,709	)		—			(6,709	)
Commercial mortgage loans		—			—			(608	)		—			(608	)
Other invested assets, net		—			25			(548	)		2			(521	)
Policy loans, net		—			—			28			—			28
Intercompany notes receivable		—			(77	)		34			43			—
Capital contributions to subsidiaries		(7	)		—			7			—			—
Payments for business purchased, net of cash acquired		(7	)		—			2			—			(5	)
Net cash used by investing activities		(14	)		(52	)		(657	)		45			(678	)
Cash flows used by financing activities:
Deposits to universal life and investment contracts		—			—			902			—			902
Withdrawals from universal life and investment contracts		—			—			(2,003	)		—			(2,003	)
Repayment of borrowings related to securitization entities		—			—			(16	)		—			(16	)
Repurchase of subsidiary shares		—			—			(31	)		—			(31	)
Dividends paid to noncontrolling interests		—			—			(92	)		—			(92	)
Proceeds from intercompany notes payable		61			(35	)		17			(43	)		—
Other, net		(1	)		(32	)		3			—			(30	)
Net cash used by financing activities		60			(67	)		(1,220	)		(43	)		(1,270	)
Effect of exchange rate changes on cash and cash equivalents		—			—			68			—			68
Net change in cash and cash equivalents		—			(244	)		296			—			52
Cash and cash equivalents at beginning of period		—			998			1,786			—			2,784
Cash and cash equivalents at end of period	$	—		$	754		$	2,082		$	—		$	2,836

The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(155	)	$	(284	)	$	451		$	(16	)	$	(4	)
Less loss from discontinued operations, net of taxes		2			7			16			—			25
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in (income) loss from subsidiaries		62			(78	)		—			16			—
Dividends from subsidiaries		—			250			(250	)		—			—
(Gain) loss on sale of businesses		—			1			(27	)		—			(26	)
Amortization of fixed maturity securities discounts and premiums and limited partnerships		—			3			(115	)		—			(112	)
Net investment (gains) losses		—			14			(45	)		—			(31	)
Charges assessed to policyholders		—			—			(574	)		—			(574	)
Acquisition costs deferred		—			—			(124	)		—			(124	)
Amortization of deferred acquisition costs and intangibles		—			—			305			—			305
Deferred income taxes		8			304			(139	)		—			173
Trading securities, held-for-sale investments and derivative instruments		—			5			754			—			759
Stock-based compensation expense		18			—			7			—			25
Change in certain assets and liabilities:
Accrued investment income and other assets		(3	)		(4	)		(246	)		(5	)		(258	)
Insurance reserves		—			—			691			—			691
Current tax liabilities		11			(4	)		37			—			44
Other liabilities, policy and contract claims and other policy-related balances		(1	)		(22	)		928			—			905
Net cash from operating activities		(58	)		192			1,669			(5	)		1,798
Cash flows used by investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		—			150			2,496			—			2,646
Commercial mortgage loans		—			—			555			—			555
Restricted commercial mortgage loans related to securitization entities		—			—			27			—			27
Proceeds from sales of investments:
Fixed maturity and equity securities		—			—			4,064			—			4,064
Purchases and originations of investments:
Fixed maturity and equity securities		—			—			(8,758	)		—			(8,758	)
Commercial mortgage loans		—			—			(405	)		—			(405	)
Other invested assets, net		—			—			(143	)		5			(138	)
Policy loans, net		—			—			(80	)		—			(80	)
Intercompany notes receivable		—			(58	)		(18	)		76			—
Proceeds from sale of businesses, net of cash transferred		—			1			38			—			39
Net cash used by investing activities		—			93			(2,224	)		81			(2,050	)
Cash flows used by financing activities:
Deposits to universal life and investment contracts		—			—			1,028			—			1,028
Withdrawals from universal life and investment contracts		—			—			(1,463	)		—			(1,463	)
Redemption of non-recourse funding obligations		—			—			(1,620	)		—			(1,620	)
Repayment and repurchase of long-term debt		—			(326	)		(36	)		—			(362	)
Repayment of borrowings related to securitization entities		—			—			(37	)		—			(37	)
Return of capital to noncontrolling interests		—			—			(70	)		—			(70	)
Dividends paid to noncontrolling interests		—			—			(126	)		—			(126	)
Proceeds from intercompany notes payable		58			18			—			(76	)		—
Other, net		—			(36	)		(13	)		—			(49	)
Net cash used by financing activities		58			(344	)		(2,337	)		(76	)		(2,699	)
Effect of exchange rate changes on cash and cash equivalents		—			—			36			—			36
Net change in cash and cash equivalents		—			(59	)		(2,856	)		—			(2,915	)
Cash and cash equivalents at beginning of period		—			1,124			4,869			—			5,993
Cash and cash equivalents at end of period	$	—		$	1,065		$	2,013		$	—		$	3,078

Our insurance company subsidiaries are restricted by state and foreign laws and regulations as to the amount of dividends they may pay to their parent without regulatory approval in any year, the purpose of which is to protect affected insurance policyholders and contractholders, not stockholders. Any dividends in excess of limits are deemed “extraordinary” and require approval. Based on statutory results as of December 31, 2016, in accordance with applicable dividend restrictions, our subsidiaries could pay dividends of approximately $220 million to us in 2017 without obtaining regulatory approval, and the remaining net assets are considered restricted. While the $220 million is unrestricted, we do not expect our insurance subsidiaries to pay dividends to us in 2017 at this level as they need to retain capital for growth and to meet capital requirements and desired thresholds. As of September 30, 2017, Genworth Financial’s and Genworth Holdings’ subsidiaries had restricted net assets of $13.0 billion and $12.2 billion, respectively.

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Accounting Changes (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Pronouncement Recently Adopted

Accounting Pronouncements Recently Adopted

On January 1, 2017, we adopted new accounting guidance related to the accounting for stock compensation. The guidance primarily simplifies the accounting for employee share-based payment transactions, including a new requirement to record all of the income tax effects at settlement or expiration through the income statement, classifications of awards as either equity or liabilities, and classification on the statement of cash flows. We adopted this new accounting guidance on a modified retrospective basis and recorded a previously disallowed deferred tax asset of $9 million with a corresponding increase to cumulative effect of change in accounting within retained earnings at adoption.

On January 1, 2017, we adopted new accounting guidance related to transition to the equity method of accounting. The guidance eliminates the retrospective application of the equity method of accounting when obtaining significant influence over a previously held investment. The guidance requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. We did not have any significant impact from this guidance on our consolidated financial statements.

On January 1, 2017, we adopted new accounting guidance related to the assessment of contingent put and call options in debt instruments. The guidance clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. This guidance is consistent with our previous accounting practices and, accordingly, did not have any impact on our consolidated financial statements.

On January 1, 2017, we adopted new accounting guidance related to the effect of derivative contract novations on existing hedge accounting relationships. The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This guidance is consistent with our previous accounting for derivative contract novations and, accordingly, did not have any impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

Accounting Pronouncements Not Yet Adopted

In August 2017, the Financial Accounting Standards Board (“the FASB”) issued new guidance intended to enable entities to better portray the economics of their derivative risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In certain situations, the amendments also simplify the application of hedge accounting. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating adopting this new guidance early and the impact it may have on our consolidated financial statements.

In May 2017, the FASB issued new guidance to clarify when to account for a change to share-based compensation as a modification. The new guidance requires modification accounting only if there are changes to the fair value, vesting conditions or classification, as a liability or equity, of the share-based compensation. The guidance is effective, prospectively, for us on January 1, 2018, accordingly, the guidance will not have any impact at adoption.

In March 2017, the FASB issued new guidance shortening the amortization period for the premium component of callable debt securities purchased at a premium. The guidance requires the premium to be amortized to the earliest call date. This change does not apply to securities held at a discount. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating the impact the guidance may have on our consolidated financial statements.

In February 2017, the FASB issued new guidance to clarify the accounting for gains and losses from the derecognition of nonfinancial assets and accounting for partial sales of nonfinancial assets. The new guidance clarifies when transferring ownership interests in a consolidated subsidiary holding nonfinancial assets is within scope. It also states that the reporting entity should identify each distinct nonfinancial asset and derecognize when a counterparty obtains control, and clarifies the accounting for partial sales. The new guidance is currently effective for us on January 1, 2018. We do not expect any significant impacts from this guidance on our consolidated financial statements.

In January 2017, the FASB issued new guidance simplifying the test for goodwill impairment. The new guidance states goodwill impairment is equal to the difference between the carrying value and fair value of the reporting unit up to the amount of recorded goodwill. The new guidance is currently effective for us on January 1, 2020, with early adoption permitted for testing dates after January 1, 2017. We do not expect any significant impacts from this new guidance on our consolidated financial statements.

In October 2016, the FASB issued new guidance related to the income tax effects of intra-entity transfers of assets other than inventory. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance is currently effective for us on January 1, 2018. We are still in process of evaluating the impact the guidance may have on our consolidated financial statements, including any cumulative effect adjustment that will be recorded directly to retained earnings as of the beginning of the period of adoption.

In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to the current financial instruments accounting primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, will be measured at fair value with changes in fair value recognized in net income (loss). As of September 30, 2017, we have approximately $45 million of cumulative unrealized gains related to equity securities included in accumulated other comprehensive income as well as approximately $25 million of gains related to limited partnership investments currently recorded at cost, that will be reclassed to cumulative effect of change in accounting within retained earnings upon adoption of this new accounting guidance. The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated in combination with other deferred tax assets. This new guidance will be effective for us on January 1, 2018. We are still in process of evaluating the full impact the guidance may have on our consolidated financial statements.

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Earnings (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings (Loss) per Share

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions, except per share amounts)	2017			2016			2017			2016
Weighted-average shares used in basic earnings (loss) per share calculations		499.1			498.3			498.9			498.3
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		2.5			—			2.3			—
Weighted-average shares used in diluted earnings (loss) per share calculations (1)		501.6			498.3			501.2			498.3
Income (loss) from continuing operations:
Income (loss) from continuing operations	$	184		$	(347	)	$	671		$	21
Less: income from continuing operations attributable to noncontrolling interests		68			48			198			151
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	116		$	(395	)	$	473		$	(130	)
Basic per share	$	0.23		$	(0.79	)	$	0.95		$	(0.26	)
Diluted per share	$	0.23		$	(0.79	)	$	0.94		$	(0.26	)
Income (loss) from discontinued operations:
Income (loss) from discontinued operations, net of taxes	$	(9	)	$	15		$	(9	)	$	(25	)
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests		—			—			—			—
Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders	$	(9	)	$	15		$	(9	)	$	(25	)
Basic per share	$	(0.02	)	$	0.03		$	(0.02	)	$	(0.05	)
Diluted per share	$	(0.02	)	$	0.03		$	(0.02	)	$	(0.05	)
Net income (loss):
Income (loss) from continuing operations	$	184		$	(347	)	$	671		$	21
Income (loss) from discontinued operations, net of taxes		(9	)		15			(9	)		(25	)
Net income (loss)		175			(332	)		662			(4	)
Less: net income attributable to noncontrolling interests		68			48			198			151
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	107		$	(380	)	$	464		$	(155	)
Basic per share	$	0.21		$	(0.76	)	$	0.93		$	(0.31	)
Diluted per share	$	0.21		$	(0.76	)	$	0.93		$	(0.31	)

⁽¹⁾ Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively.

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Investments (Tables)

9 Months Ended

Sep. 30, 2017

Net Investment Income

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Fixed maturity securities—taxable	$	640		$	655		$	1,930			1,930
Fixed maturity securities—non-taxable		3			3			9			9
Commercial mortgage loans		78			79			231			237
Restricted commercial mortgage loans related to securitization entities		3			3			7			8
Equity securities		9			8			26			20
Other invested assets		39			34			106			105
Restricted other invested assets related to securitization entities		—			—			1			3
Policy loans		39			38			120			107
Cash, cash equivalents and short-term investments		10			5			26			16
Gross investment income before expenses and fees		821			825			2,456			2,435
Expenses and fees		(24	)		(20	)		(68	)		(62	)
Net investment income	$	797		$	805		$	2,388		$	2,373

Net Investment Gains (Losses)

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

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Available-for-sale securities:
Realized gains	$	40		$	39		$	177		$	205
Realized losses		(10	)		(24	)		(55	)		(75	)
Net realized gains (losses) on available-for-sale securities		30			15			122			130
Impairments:
Total other-than-temporary impairments		(1	)		(2	)		(4	)		(35	)
Portion of other-than-temporary impairments included in other comprehensive income (loss)		—			—			—			—
Net other-than-temporary impairments		(1	)		(2	)		(4	)		(35	)
Trading securities		—			(4	)		1			40
Commercial mortgage loans		1			(1	)		3			1
Net gains (losses) related to securitization entities		1			2			5			(51	)
Derivative instruments (1)		54			10			93			(52	)
Contingent consideration adjustment		—			—			—			(2	)
Net investment gains (losses)	$	85		$	20		$	220		$	31

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

Credit Losses Recognized in Net Income (Loss)

The following represents the activity for credit losses recognized in net income (loss) on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (loss) (“OCI”) as of and for the periods indicated:

	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Beginning balance	$	38		$	62		$	42		$	64
Additions:
Other-than-temporary impairments not previously recognized		—			—			—			1
Reductions:
Securities sold, paid down or disposed		(5	)		(8	)		(9	)		(11	)
Ending balance	$	33		$	54		$	33		$	54

Unrealized Investment Gains and Losses

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

(Amounts in millions)	September 30, 2017			December 31, 2016
Net unrealized gains (losses) on investment securities:
Fixed maturity securities	$	4,878		$	3,656
Equity securities		49			12
Subtotal (1)		4,927			3,668
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves		(3,134	)		(1,611	)
Income taxes, net		(619	)		(711	)
Net unrealized investment gains (losses)		1,174			1,346
Less: net unrealized investment gains (losses) attributable to noncontrolling interests		66			84
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.	$	1,108		$	1,262

⁽¹⁾ Excludes foreign exchange.

Change in Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities Reported in Accumulated Other Comprehensive Income (Loss)

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:

	As of or for the three months ended September 30,
(Amounts in millions)	2017			2016
Beginning balance	$	1,180		$	2,789
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities		(10	)		228
Adjustment to deferred acquisition costs		(1	)		(17	)
Adjustment to present value of future profits		(3	)		3
Adjustment to sales inducements		—			(6	)
Adjustment to benefit reserves		(92	)		(81	)
Provision for income taxes		36			(41	)
Change in unrealized gains (losses) on investment securities		(70	)		86
Reclassification adjustments to net investment (gains) losses, net of taxes of $10 and $4		(19	)		(9	)
Change in net unrealized investment gains (losses)		(89	)		77
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests		(17	)		6
Ending balance	$	1,108		$	2,860

	As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016
Beginning balance	$	1,262		$	1,254
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities		1,377			3,584
Adjustment to deferred acquisition costs		(1,047	)		(291	)
Adjustment to present value of future profits		(36	)		(26	)
Adjustment to sales inducements		(11	)		(46	)
Adjustment to benefit reserves		(429	)		(612	)
Provision for income taxes		51			(917	)
Change in unrealized gains (losses) on investment securities		(95	)		1,692
Reclassification adjustments to net investment (gains) losses, net of taxes of $41 and $33		(77	)		(62	)
Change in net unrealized investment gains (losses)		(172	)		1,630
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests		(18	)		24
Ending balance	$	1,108		$	2,860

Fixed Maturity and Equity Securities

As of September 30, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

			Gross unrealized gains				Gross unrealized losses
(Amounts in millions)	Amortized cost or cost		Not other-than- temporarily impaired		Other-than- temporarily impaired		Not other-than- temporarily impaired			Other-than- temporarily impaired		Fair value
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	4,893	$	784	$	—	$	(7	)	$	—	$	5,670
State and political subdivisions		2,639		247		—		(26	)		—		2,860
Non-U.S. government		2,143		107		—		(24	)		—		2,226
U.S. corporate:
Utilities		4,382		556		—		(15	)		—		4,923
Energy		2,243		207		—		(10	)		—		2,440
Finance and insurance		6,051		547		—		(11	)		—		6,587
Consumer—non-cyclical		4,330		508		—		(10	)		—		4,828
Technology and communications		2,558		193		—		(11	)		—		2,740
Industrial		1,247		102		—		(3	)		—		1,346
Capital goods		2,067		263		—		(9	)		—		2,321
Consumer—cyclical		1,506		111		—		(6	)		—		1,611
Transportation		1,188		124		—		(6	)		—		1,306
Other		358		24		—		(2	)		—		380
Total U.S. corporate		25,930		2,635		—		(83	)		—		28,482
Non-U.S. corporate:
Utilities		1,022		45		—		(5	)		—		1,062
Energy		1,330		140		—		(7	)		—		1,463
Finance and insurance		2,524		177		—		(5	)		—		2,696
Consumer—non-cyclical		692		27		—		(3	)		—		716
Technology and communications		945		71		—		(2	)		—		1,014
Industrial		979		81		—		(2	)		—		1,058
Capital goods		556		33		—		(2	)		—		587
Consumer—cyclical		518		10		—		(1	)		—		527
Transportation		650		71		—		(3	)		—		718
Other		2,594		193		—		(5	)		—		2,782
Total non-U.S. corporate		11,810		848		—		(35	)		—		12,623
Residential mortgage-backed		3,950		255		14		(10	)		—		4,209
Commercial mortgage-backed		3,346		105		2		(39	)		—		3,414
Other asset-backed		3,052		20		1		(5	)		—		3,068
Total fixed maturity securities		57,763		5,001		17		(229	)		—		62,552
Equity securities		720		59		—		(14	)		—		765
Total available-for-sale securities	$	58,483	$	5,060	$	17	$	(243	)	$	—	$	63,317

As of December 31, 2016, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

			Gross unrealized gains				Gross unrealized losses
(Amounts in millions)	Amortized cost or cost		Not other-than- temporarily impaired		Other-than- temporarily impaired		Not other-than- temporarily impaired			Other-than- temporarily impaired		Fair value
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	5,439	$	647	$	—	$	(50	)	$	—	$	6,036
State and political subdivisions		2,515		182		—		(50	)		—		2,647
Non-U.S. government		2,024		101		—		(18	)		—		2,107
U.S. corporate:
Utilities		4,137		454		—		(41	)		—		4,550
Energy		2,167		157		—		(24	)		—		2,300
Finance and insurance		5,719		424		—		(46	)		—		6,097
Consumer—non-cyclical		4,335		433		—		(34	)		—		4,734
Technology and communications		2,473		157		—		(32	)		—		2,598
Industrial		1,161		76		—		(14	)		—		1,223
Capital goods		2,043		228		—		(13	)		—		2,258
Consumer—cyclical		1,455		92		—		(17	)		—		1,530
Transportation		1,121		86		—		(17	)		—		1,190
Other		332		17		—		(1	)		—		348
Total U.S. corporate		24,943		2,124		—		(239	)		—		26,828
Non-U.S. corporate:
Utilities		940		40		—		(11	)		—		969
Energy		1,234		109		—		(12	)		—		1,331
Finance and insurance		2,413		134		—		(9	)		—		2,538
Consumer—non-cyclical		711		17		—		(14	)		—		714
Technology and communications		953		44		—		(10	)		—		987
Industrial		928		39		—		(9	)		—		958
Capital goods		518		21		—		(4	)		—		535
Consumer—cyclical		434		10		—		(2	)		—		442
Transportation		619		65		—		(7	)		—		677
Other		2,967		190		—		(13	)		—		3,144
Total non-U.S. corporate		11,717		669		—		(91	)		—		12,295
Residential mortgage-backed		4,122		259		10		(12	)		—		4,379
Commercial mortgage-backed		3,084		98		3		(56	)		—		3,129
Other asset-backed		3,170		15		1		(35	)		—		3,151
Total fixed maturity securities		57,014		4,095		14		(551	)		—		60,572
Equity securities		628		31		—		(27	)		—		632
Total available-for-sale securities	$	57,642	$	4,126	$	14	$	(578	)	$	—	$	61,204

Maturity Distribution of Fixed Maturity Securities

The scheduled maturity distribution of fixed maturity securities as of September 30, 2017 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 or cost		Fair value
Due one year or less	$	1,943	$	1,966
Due after one year through five years		10,901		11,333
Due after five years through ten years		12,363		12,933
Due after ten years		22,208		25,629
Subtotal		47,415		51,861
Residential mortgage-backed		3,950		4,209
Commercial mortgage-backed		3,346		3,414
Other asset-backed		3,052		3,068
Total	$	57,763	$	62,552

Aging of Past Due Commercial Mortgage Loans by Property Type

The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated:

	September 30, 2017
(Amounts in millions)	31 - 60 days past due			61 - 90 days past due			Greater than 90 days past due			Total past due			Current			Total
Property type:
Retail	$	—		$	—		$	—		$	—		$	2,220		$	2,220
Industrial		—			—			—			—			1,608			1,608
Office		6			—			—			6			1,459			1,465
Apartments		—			—			—			—			489			489
Mixed use		—			—			—			—			222			222
Other		—			—			—			—			277			277
Total recorded investment	$	6		$	—		$	—		$	6		$	6,275		$	6,281
% of total commercial mortgage loans		—	%		—	%		—	%		—	%		100	%		100	%

	December 31, 2016
(Amounts in millions)	31 - 60 days past due			61 - 90 days past due			Greater than 90 days past due			Total past due			Current			Total
Property type:
Retail	$	—		$	—		$	—		$	—		$	2,178		$	2,178
Industrial		1			—			12			13			1,520			1,533
Office		—			—			—			—			1,430			1,430
Apartments		—			—			—			—			455			455
Mixed use		—			—			—			—			245			245
Other		—			—			—			—			284			284
Total recorded investment	$	1		$	—		$	12		$	13		$	6,112		$	6,125
% of total commercial mortgage loans		—	%		—	%		—	%		—	%		100	%		100	%

Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans

The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the periods indicated:

	Three months ended September 30,				Nine months ended September 30,
(Amounts in millions)	2017		2016		2017			2016
Allowance for credit losses:
Beginning balance	$	10	$	13	$	12		$	15
Charge-offs		—		—		—			(4	)
Recoveries		—		—		—			—
Provision		—		—		(2	)		2
Ending balance	$	10	$	13	$	10		$	13
Ending allowance for individually impaired loans	$	—	$	—	$	—		$	—
Ending allowance for loans not individually impaired that were evaluated collectively for impairment	$	10	$	13	$	10		$	13
Recorded investment:
Ending balance	$	6,281	$	6,032	$	6,281		$	6,032
Ending balance of individually impaired loans	$	—	$	17	$	—		$	17
Ending balance of loans not individually impaired that were evaluated collectively for impairment	$	6,281	$	6,015	$	6,281		$	6,015

Investment Securities

Gross Unrealized Losses and Fair Values of Securities in a Continuous Unrealized Loss Position

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of September 30, 2017:

	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	$	283	$	(6	)		22	$	31	$	(1	)		4	$	314	$	(7	)		26
State and political subdivisions		213		(5	)		45		230		(21	)		23		443		(26	)		68
Non-U.S. government		922		(23	)		36		24		(1	)		14		946		(24	)		50
U.S. corporate		2,335		(47	)		333		766		(36	)		106		3,101		(83	)		439
Non-U.S. corporate		1,562		(22	)		222		261		(13	)		36		1,823		(35	)		258
Residential mortgage-backed		656		(9	)		80		33		(1	)		28		689		(10	)		108
Commercial mortgage-backed		837		(25	)		120		201		(14	)		30		1,038		(39	)		150
Other asset-backed		736		(4	)		131		173		(1	)		40		909		(5	)		171
Subtotal, fixed maturity securities		7,544		(141	)		989		1,719		(88	)		281		9,263		(229	)		1,270
Equity securities		82		(5	)		142		111		(9	)		89		193		(14	)		231
Total for securities in an unrealized loss position	$	7,626	$	(146	)		1,131	$	1,830	$	(97	)		370	$	9,456	$	(243	)		1,501
% Below cost—fixed maturity securities:
<20% Below cost	$	7,544	$	(141	)		989	$	1,719	$	(88	)		281	$	9,263	$	(229	)		1,270
Total fixed maturity securities		7,544		(141	)		989		1,719		(88	)		281		9,263		(229	)		1,270
% Below cost—equity securities:
<20% Below cost		79		(4	)		139		111		(9	)		89		190		(13	)		228
20%-50% Below cost		3		(1	)		3		—		—			—		3		(1	)		3
Total equity securities		82		(5	)		142		111		(9	)		89		193		(14	)		231
Total for securities in an unrealized loss position	$	7,626	$	(146	)		1,131	$	1,830	$	(97	)		370	$	9,456	$	(243	)		1,501
Investment grade	$	7,437	$	(139	)		984	$	1,656	$	(90	)		287	$	9,093	$	(229	)		1,271
Below investment grade		189		(7	)		147		174		(7	)		83		363		(14	)		230
Total for securities in an unrealized loss position	$	7,626	$	(146	)		1,131	$	1,830	$	(97	)		370	$	9,456	$	(243	)		1,501

The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of September 30, 2017:

	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	$	468	$	(10	)		69	$	104	$	(5	)		17	$	572	$	(15	)		86
Energy		123		(1	)		22		146		(9	)		16		269		(10	)		38
Finance and insurance		542		(7	)		75		154		(4	)		21		696		(11	)		96
Consumer—non-cyclical		325		(7	)		50		84		(3	)		12		409		(10	)		62
Technology and communications		208		(4	)		30		127		(7	)		19		335		(11	)		49
Industrial		55		(1	)		12		56		(2	)		8		111		(3	)		20
Capital goods		274		(8	)		31		8		(1	)		2		282		(9	)		33
Consumer—cyclical		127		(2	)		18		70		(4	)		9		197		(6	)		27
Transportation		190		(5	)		24		17		(1	)		2		207		(6	)		26
Other		23		(2	)		2		—		—			—		23		(2	)		2
Subtotal, U.S. corporate securities		2,335		(47	)		333		766		(36	)		106		3,101		(83	)		439
Non-U.S. corporate:
Utilities		227		(4	)		31		19		(1	)		2		246		(5	)		33
Energy		142		(3	)		21		69		(4	)		11		211		(7	)		32
Finance and insurance		324		(3	)		49		50		(2	)		9		374		(5	)		58
Consumer—non-cyclical		131		(2	)		16		34		(1	)		4		165		(3	)		20
Technology and communications		80		(1	)		17		12		(1	)		2		92		(2	)		19
Industrial		67		(1	)		10		11		(1	)		2		78		(2	)		12
Capital goods		34		(1	)		6		34		(1	)		3		68		(2	)		9
Consumer—cyclical		101		(1	)		15		—		—			—		101		(1	)		15
Transportation		61		(1	)		13		32		(2	)		3		93		(3	)		16
Other		395		(5	)		44		—		—			—		395		(5	)		44
Subtotal, non-U.S. corporate securities		1,562		(22	)		222		261		(13	)		36		1,823		(35	)		258
Total for corporate securities in an unrealized loss position	$	3,897	$	(69	)		555	$	1,027	$	(49	)		142	$	4,924	$	(118	)		697

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2016:

	Less than 12 months							12 months or more							Total
(Dollar amounts in millions)	Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities		Fair value		Gross unrealized losses			Number of securities
Description of Securities
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	1,074	$	(50	)		37	$	—	$	—			—	$	1,074	$	(50	)		37
State and political subdivisions		644		(32	)		109		142		(18	)		12		786		(50	)		121
Non-U.S. government		497		(18	)		51		—		—			—		497		(18	)		51
U.S. corporate		5,221		(190	)		711		662		(49	)		94		5,883		(239	)		805
Non-U.S. corporate		2,257		(66	)		330		408		(25	)		57		2,665		(91	)		387
Residential mortgage-backed		725		(11	)		100		58		(1	)		35		783		(12	)		135
Commercial mortgage-backed		1,091		(55	)		168		25		(1	)		9		1,116		(56	)		177
Other asset-backed		1,069		(13	)		184		328		(22	)		68		1,397		(35	)		252
Subtotal, fixed maturity securities		12,578		(435	)		1,690		1,623		(116	)		275		14,201		(551	)		1,965
Equity securities		119		(9	)		182		114		(18	)		47		233		(27	)		229
Total for securities in an unrealized loss position	$	12,697	$	(444	)		1,872	$	1,737	$	(134	)		322	$	14,434	$	(578	)		2,194
% Below cost—fixed maturity securities:
<20% Below cost	$	12,578	$	(435	)		1,690	$	1,543	$	(90	)		267	$	14,121	$	(525	)		1,957
20%-50% Below cost		—		—			—		80		(26	)		8		80		(26	)		8
Total fixed maturity securities		12,578		(435	)		1,690		1,623		(116	)		275		14,201		(551	)		1,965
% Below cost—equity securities:
<20% Below cost		118		(8	)		167		101		(14	)		38		219		(22	)		205
20%-50% Below cost		1		(1	)		15		13		(4	)		9		14		(5	)		24
Total equity securities		119		(9	)		182		114		(18	)		47		233		(27	)		229
Total for securities in an unrealized loss position	$	12,697	$	(444	)		1,872	$	1,737	$	(134	)		322	$	14,434	$	(578	)		2,194
Investment grade	$	12,339	$	(432	)		1,657	$	1,354	$	(108	)		250	$	13,693	$	(540	)		1,907
Below investment grade		358		(12	)		215		383		(26	)		72		741		(38	)		287
Total for securities in an unrealized loss position	$	12,697	$	(444	)		1,872	$	1,737	$	(134	)		322	$	14,434	$	(578	)		2,194

The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2016:

	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	$	855	$	(39	)		130	$	21	$	(2	)		5	$	876	$	(41	)		135
Energy		190		(5	)		30		276		(19	)		38		466		(24	)		68
Finance and insurance		1,438		(38	)		177		113		(8	)		15		1,551		(46	)		192
Consumer—non-cyclical		921		(34	)		117		—		—			—		921		(34	)		117
Technology and communications		507		(22	)		70		126		(10	)		17		633		(32	)		87
Industrial		226		(7	)		38		77		(7	)		10		303		(14	)		48
Capital goods		322		(12	)		50		6		(1	)		1		328		(13	)		51
Consumer—cyclical		431		(16	)		56		26		(1	)		6		457		(17	)		62
Transportation		302		(16	)		41		17		(1	)		2		319		(17	)		43
Other		29		(1	)		2		—		—			—		29		(1	)		2
Subtotal, U.S. corporate securities		5,221		(190	)		711		662		(49	)		94		5,883		(239	)		805
Non-U.S. corporate:
Utilities		240		(10	)		32		14		(1	)		1		254		(11	)		33
Energy		105		(3	)		18		91		(9	)		16		196		(12	)		34
Finance and insurance		474		(8	)		79		71		(1	)		16		545		(9	)		95
Consumer—non-cyclical		308		(14	)		30		—		—			—		308		(14	)		30
Technology and communications		232		(9	)		34		28		(1	)		2		260		(10	)		36
Industrial		165		(5	)		21		91		(4	)		10		256		(9	)		31
Capital goods		104		(2	)		14		28		(2	)		2		132		(4	)		16
Consumer—cyclical		90		(2	)		17		—		—			—		90		(2	)		17
Transportation		106		(5	)		16		25		(2	)		2		131		(7	)		18
Other		433		(8	)		69		60		(5	)		8		493		(13	)		77
Subtotal, non-U.S. corporate securities		2,257		(66	)		330		408		(25	)		57		2,665		(91	)		387
Total for corporate securities in an unrealized loss position	$	7,478	$	(256	)		1,041	$	1,070	$	(74	)		151	$	8,548	$	(330	)		1,192

Loan To Value Ratio

Commercial Mortgage Loans by Property Type

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

	September 30, 2017
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100% (1)			Total
Property type:
Retail	$	933		$	499		$	788		$	—		$	—		$	2,220
Industrial		747			356			503			2			—			1,608
Office		583			393			473			14			2			1,465
Apartments		236			105			143			5			—			489
Mixed use		101			59			62			—			—			222
Other		68			29			180			—			—			277
Total recorded investment	$	2,668		$	1,441		$	2,149		$	21		$	2		$	6,281
% of total		43	%		23	%		34	%		—	%		—	%		100	%
Weighted-average debt service coverage ratio		2.65			1.85			1.60			0.63			1.04			2.10

⁽¹⁾ Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 103%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

	December 31, 2016
(Amounts in millions)	0% - 50%			51% - 60%			61% - 75%			76% - 100%			Greater than 100% (1)			Total
Property type:
Retail	$	743		$	511		$	913		$	11		$	—		$	2,178
Industrial		605			430			484			14			—			1,533
Office		431			310			656			26			7			1,430
Apartments		188			89			173			5			—			455
Mixed use		67			87			91			—			—			245
Other		60			30			194			—			—			284
Total recorded investment	$	2,094		$	1,457		$	2,511		$	56		$	7		$	6,125
% of total		34	%		24	%		41	%		1	%		—	%		100	%
Weighted-average debt service coverage ratio		2.20			1.88			1.61			0.80			(0.07	)		1.87

⁽¹⁾ Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

Debt Service Coverage Ratio

Commercial Mortgage Loans by Property Type

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

	September 30, 2017
(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	$	43		$	242		$	298		$	999		$	638		$	2,220
Industrial		24			63			180			679			662			1,608
Office		72			67			151			521			654			1,465
Apartments		—			20			75			193			201			489
Mixed use		2			4			26			86			104			222
Other		1			149			15			72			40			277
Total recorded investment	$	142		$	545		$	745		$	2,550		$	2,299		$	6,281
% of total		2	%		9	%		12	%		40	%		37	%		100	%
Weighted-average loan-to-value		57	%		60	%		58	%		57	%		41	%		52	%

	December 31, 2016
(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	$	67		$	204		$	425		$	899		$	583		$	2,178
Industrial		71			113			236			599			514			1,533
Office		91			117			172			609			441			1,430
Apartments		19			22			44			217			153			455
Mixed use		2			9			19			128			87			245
Other		1			148			60			55			20			284
Total recorded investment	$	251		$	613		$	956		$	2,507		$	1,798		$	6,125
% of total		4	%		10	%		16	%		41	%		29	%		100	%
Weighted-average loan-to-value		61	%		60	%		59	%		58	%		45	%		55	%

Other Geographic Area | Commercial Mortgage Loan

Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans

	September 30, 2017						December 31, 2016
(Amounts in millions)	Carrying value			% of total			Carrying value			% of total
Property type:
Retail	$	2,220			35	%	$	2,178			36	%
Industrial		1,608			26			1,533			25
Office		1,465			23			1,430			23
Apartments		489			8			455			7
Mixed use		222			4			245			4
Other		277			4			284			5
Subtotal		6,281			100	%		6,125			100	%
Unamortized balance of loan origination fees and costs		(3	)					(2	)
Allowance for losses		(10	)					(12	)
Total	$	6,268					$	6,111

	September 30, 2017						December 31, 2016
(Amounts in millions)	Carrying value			% of total			Carrying value			% of total
Geographic region:
South Atlantic	$	1,620			26	%	$	1,546			25	%
Pacific		1,600			26			1,567			27
Middle Atlantic		904			14			915			15
Mountain		556			9			554			9
West North Central		441			7			435			7
East North Central		386			6			388			6
West South Central		327			5			311			5
New England		237			4			206			3
East South Central		210			3			203			3
Subtotal		6,281			100	%		6,125			100	%
Unamortized balance of loan origination fees and costs		(3	)					(2	)
Allowance for losses		(10	)					(12	)
Total	$	6,268					$	6,111

Real Estate Properties | Commercial Mortgage Loan

Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans

The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated:

	September 30, 2017						December 31, 2016
(Amounts in millions)	Carrying value			% of total			Carrying value			% of total
Property type:
Retail	$	2,220			35	%	$	2,178			36	%
Industrial		1,608			26			1,533			25
Office		1,465			23			1,430			23
Apartments		489			8			455			7
Mixed use		222			4			245			4
Other		277			4			284			5
Subtotal		6,281			100	%		6,125			100	%
Unamortized balance of loan origination fees and costs		(3	)					(2	)
Allowance for losses		(10	)					(12	)
Total	$	6,268					$	6,111

XML

Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Schedule Of Positions in Derivative Instruments

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

	Derivative assets					Derivative liabilities
		Fair value						Fair value
(Amounts in millions)	Balance  sheet classification	September 30, 2017 (5)		December 31, 2016		Balance  sheet classification		September 30, 2017 (5)		December 31, 2016
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps	Other invested assets	$	70	$	237		Other liabilities	$	39	$	203
Foreign currency swaps	Other invested assets		2		4		Other liabilities		—		—
Total cash flow hedges			72		241				39		203
Total derivatives designated as hedges			72		241				39		203
Derivatives not designated as hedges
Interest rate swaps	Other invested assets		—		359		Other liabilities		—		146
Foreign currency swaps	Other invested assets		10		—		Other liabilities		—		5
Credit default swaps related to securitization entities	Restricted other invested assets		—		—		Other liabilities		—		1
Equity index options	Other invested assets		81		72		Other liabilities		—		—
Financial futures	Other invested assets		—		—		Other liabilities		—		—
Equity return swaps	Other invested assets		—		1		Other liabilities		2		1
Other foreign currency contracts	Other invested assets		98		35		Other liabilities		23		27
GMWB embedded derivatives	Reinsurance recoverable(1)		14		16		Policyholder account balances(2)		257		303
Fixed index annuity embedded derivatives	Other assets		—		—		Policyholder account balances(3)		394		344
Indexed universal life embedded derivatives	Reinsurance recoverable		—		—		Policyholder account balances(4)		14		11
Total derivatives not designated as hedges			203		483				690		838
Total derivatives		$	275	$	724			$	729	$	1,041

⁽¹⁾ Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities.

⁽²⁾ Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

⁽³⁾ Represents the embedded derivatives associated with our fixed index annuity liabilities.

⁽⁴⁾ Represents the embedded derivatives associated with our indexed universal life liabilities.

⁽⁵⁾ In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017.

Schedule of Notional Amounts Outstanding on Derivative Instruments

The following tables represent activity associated with derivative instruments as of the dates indicated:

(Notional in millions)	Measurement		December 31, 2016		Additions		Maturities/ terminations			September 30, 2017
Derivatives designated as hedges
Cash flow hedges:
Interest rate swaps		Notional	$	11,570	$	—	$	(306	)	$	11,264
Foreign currency swaps		Notional		22		—		—			22
Total cash flow hedges				11,592		—		(306	)		11,286
Total derivatives designated as hedges				11,592		—		(306	)		11,286
Derivatives not designated as hedges
Interest rate swaps		Notional		4,679		—		—			4,679
Foreign currency swaps		Notional		201		95		(14	)		282
Credit default swaps		Notional		39		—		—			39
Credit default swaps related to securitization entities		Notional		312		—		(200	)		112
Equity index options		Notional		2,396		1,584		(1,484	)		2,496
Financial futures		Notional		1,398		4,300		(4,376	)		1,322
Equity return swaps		Notional		165		186		(258	)		93
Other foreign currency contracts		Notional		3,130		2,163		(691	)		4,602
Total derivatives not designated as hedges				12,320		8,328		(7,023	)		13,625
Total derivatives			$	23,912	$	8,328	$	(7,329	)	$	24,911

(Number of policies)	Measurement		December 31, 2016		Additions		Maturities/ terminations			September 30, 2017
Derivatives not designated as hedges
GMWB embedded derivatives		Policies		33,238		—		(2,127	)		31,111
Fixed index annuity embedded derivatives		Policies		17,549		—		(367	)		17,182
Indexed universal life embedded derivatives		Policies		1,074		1		(66	)		1,009

Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2016:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	115		$	27		Net investment income	$	2		Net investment gains (losses)
Interest rate swaps hedging liabilities		(2	)		—		Interest expense		—		Net investment gains (losses)
Foreign currency swaps		(1	)		—		Net investment income		—		Net investment gains (losses)
Total	$	112		$	27			$	2

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2017:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	50		$	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		(2	)		—		Interest expense		—		Net investment gains (losses)
Foreign currency swaps		(2	)		—		Net investment income		—		Net investment gains (losses)
Total	$	46		$	97			$	—

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2016:

(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) (1)		Classification of gain (loss) recognized in net income (loss)
Interest rate swaps hedging assets	$	839		$	80		Net investment income	$	13		Net investment gains (losses)
Interest rate swaps hedging assets		—			1		Net investment gains (losses)		—		Net investment gains (losses)
Interest rate swaps hedging liabilities		(52	)		—		Interest expense		—		Net investment gains (losses)
Inflation indexed swaps		(5	)		2		Net investment income		—		Net investment gains (losses)
Inflation indexed swaps		—			7		Net investment gains (losses)		—		Net investment gains (losses)
Foreign currency swaps		(2	)		—		Net investment income		—		Net investment gains (losses)
Total	$	780		$	90			$	13

⁽¹⁾ Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedge

The following tables provide a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” for the periods indicated:

	Three months ended September 30,
(Amounts in millions)	2017			2016
Derivatives qualifying as effective accounting hedges as of July 1	$	2,064		$	2,439
Current period increases (decreases) in fair value, net of deferred taxes of $(6) and $(40)		10			72
Reclassification to net (income), net of deferred taxes of $12 and $9		(22	)		(18	)
Derivatives qualifying as effective accounting hedges as of September 30	$	2,052		$	2,493

	Nine months ended September 30,
(Amounts in millions)	2017			2016
Derivatives qualifying as effective accounting hedges as of January 1	$	2,085		$	2,045
Current period increases (decreases) in fair value, net of deferred taxes of $(17) and $(273)		29			507
Reclassification to net (income), net of deferred taxes of $35 and $31		(62	)		(59	)
Derivatives qualifying as effective accounting hedges as of September 30	$	2,052		$	2,493

Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for Effects of Derivatives Not Designated as Hedges

The following tables provide 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 September 30,						Classification of gain (loss) recognized in net income (loss)
(Amounts in millions)	2017			2016
Interest rate swaps	$	1		$	(1	)	Net investment gains (losses)
Credit default swaps related to securitization entities		2			2		Net investment gains (losses)
Equity index options		16			9		Net investment gains (losses)
Financial futures		(17	)		(35	)	Net investment gains (losses)
Equity return swaps		(5	)		(9	)	Net investment gains (losses)
Other foreign currency contracts		40			(2	)	Net investment gains (losses)
Foreign currency swaps		8			(1	)	Net investment gains (losses)
GMWB embedded derivatives		30			60		Net investment gains (losses)
Fixed index annuity embedded derivatives		(21	)		(16	)	Net investment gains (losses)
Indexed universal life embedded derivatives		2			3		Net investment gains (losses)
Total derivatives not designated as hedges	$	56		$	10

	Nine months ended September 30,						Classification of gain (loss) recognized in net income (loss)
(Amounts in millions)	2017			2016
Interest rate swaps	$	2		$	7		Net investment gains (losses)
Interest rate swaps related to securitization entities		—			(10	)	Net investment gains (losses)
Credit default swaps related to securitization entities		6			16		Net investment gains (losses)
Equity index options		42			5		Net investment gains (losses)
Financial futures		(25	)		(9	)	Net investment gains (losses)
Equity return swaps		(19	)		(2	)	Net investment gains (losses)
Other foreign currency contracts		66			(6	)	Net investment gains (losses)
Foreign currency swaps		13			6		Net investment gains (losses)
GMWB embedded derivatives		64			(58	)	Net investment gains (losses)
Fixed index annuity embedded derivatives		(57	)		(22	)	Net investment gains (losses)
Indexed universal life embedded derivatives		5			6		Net investment gains (losses)
Total derivatives not designated as hedges	$	97		$	(67	)

Derivative Assets and Liabilities Subject to Master Netting Arrangement

The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated:

	September 30, 2017									December 31, 2016
(Amounts in millions)	Derivatives assets (1)			Derivatives liabilities (2)			Net derivatives			Derivatives assets (1)			Derivatives liabilities (2)			Net derivatives
Amounts presented in the balance sheet:
Gross amounts recognized	$	262		$	66		$	196		$	724		$	387		$	337
Gross amounts offset in the balance sheet		—			—			—			—			—			—
Net amounts presented in the balance sheet		262			66			196			724			387			337
Gross amounts not offset in the balance sheet:
Financial instruments (3)		(24	)		(24	)		—			(172	)		(172	)		—
Collateral received		(164	)		—			(164	)		(467	)		—			(467	)
Collateral pledged		—			(301	)		301			—			(557	)		557
Over collateralization		8			259			(251	)		1			344			(343	)
Net amount	$	82		$	—		$	82		$	86		$	2		$	84

⁽¹⁾ Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively.

⁽²⁾ Included $2 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2017 and December 31, 2016, respectively.

⁽³⁾  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.

Schedule of Credit Default Swaps Where We Sell Protection on Single Name Reference Entities and Fair Values

The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated:

	September 30, 2017						December 31, 2016
(Amounts in millions)	Notional value		Assets		Liabilities		Notional value		Assets		Liabilities
Investment grade
Matures in less than one year	$	39	$	—	$	—	$	—	$	—	$	—
Matures after one year through five years		—		—		—		39		—		—
Total credit default swaps on single name reference entities	$	39	$	—	$	—	$	39	$	—	$	—

Schedule of Credit Default Swaps Where We Sell Protection on Credit Default Swap Index Tranches and Fair Values

The following table sets forth our credit default swaps where we sell protection on credit default swap index tranches and the fair values as of the dates indicated:

	September 30, 2017						December 31, 2016
(Amounts in millions)	Notional value		Assets		Liabilities		Notional value		Assets		Liabilities
Customized credit default swap index tranches related to securitization entities:
Portion backing third-party borrowings maturing 2017 (1)	$	12	$	—	$	—	$	12	$	—	$	—
Portion backing our interest maturing 2017 (2)		100		—				300		—		1
Total customized credit default swap index tranches related to securitization entities		112		—		—		312		—		1
Total credit default swaps on index tranches	$	112	$	—	$	—	$	312	$	—	$	1

⁽¹⁾ Original notional value was $39 million.

⁽²⁾ Original notional value was $300 million.

XML

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Financial Instruments Not Required to be Carried at Fair Value

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

	September 30, 2017
	Notional amount			Carrying amount		Fair value
(Amounts in millions)						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans	$		(1)	$	6,268	$	6,550	$	—	$	—	$	6,550
Restricted commercial mortgage loans			(1)		111		122		—		—		122
Other invested assets			(1)		217		243		—		—		243
Liabilities:
Long-term borrowings			(1)		4,224		3,742		—		3,583		159
Non-recourse funding obligations			(1)		310		195		—		—		195
Borrowings related to securitization entities			(1)		47		48		—		48		—
Investment contracts			(1)		15,163		15,705		—		5		15,700
Other firm commitments:
Commitments to fund limited partnerships		319			—		—		—		—		—
Ordinary course of business lending commitments		61			—		—		—		—		—

	December 31, 2016
	Notional amount			Carrying amount		Fair value
(Amounts in millions)						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans	$		(1)	$	6,111	$	6,247	$	—	$	—	$	6,247
Restricted commercial mortgage loans			(1)		129		141		—		—		141
Other invested assets			(1)		459		473		—		352		121
Liabilities:
Long-term borrowings			(1)		4,180		3,582		—		3,440		142
Non-recourse funding obligations			(1)		310		186		—		—		186
Borrowings related to securitization entities			(1)		62		65		—		65		—
Investment contracts			(1)		16,437		16,993		—		5		16,988
Other firm commitments:
Commitments to fund limited partnerships		201			—		—		—		—		—
Ordinary course of business lending commitments		73			—		—		—		—		—

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

Summary of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2

The following table presents a summary of the significant inputs used by our third-party pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of September 30, 2017:

(Amounts in millions)	Fair value		Primary methodologies	Significant inputs
U.S. government, agencies and government-sponsored enterprises	$	5,669	Price quotes from trading desk, broker feeds	Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread
State and political subdivisions	$	2,816	Multi-dimensional attribute-based modeling systems, third-party pricing vendors	Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes
Non-U.S. government	$	2,210	Matrix pricing, spread priced to benchmark curves, 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
U.S. corporate	$	25,290	Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, 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	$	10,711	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	$	4,123	OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced	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	$	3,392	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 swaps curves, TRACE reports
Other asset-backed	$	2,843	Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models	Spreads to daily updated swaps 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

• Internal models: A portion of our state and political subdivisions, non-U.S. government, U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities were $7 million, $16 million, $865 million and $461 million, respectively, as of September 30, 2017. 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

Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis

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

	September 30, 2017
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	5,670	$	—	$	5,669	$	1
State and political subdivisions		2,860		—		2,823		37
Non-U.S. government		2,226		—		2,226		—
U.S. corporate:
Utilities		4,923		—		4,261		662
Energy		2,440		—		2,282		158
Finance and insurance		6,587		—		5,917		670
Consumer—non-cyclical		4,828		—		4,701		127
Technology and communications		2,740		—		2,688		52
Industrial		1,346		—		1,299		47
Capital goods		2,321		—		2,203		118
Consumer—cyclical		1,611		—		1,349		262
Transportation		1,306		—		1,245		61
Other		380		—		210		170
Total U.S. corporate		28,482		—		26,155		2,327
Non-U.S. corporate:
Utilities		1,062		—		703		359
Energy		1,463		—		1,286		177
Finance and insurance		2,696		—		2,527		169
Consumer—non-cyclical		716		—		587		129
Technology and communications		1,014		—		985		29
Industrial		1,058		—		919		139
Capital goods		587		—		437		150
Consumer—cyclical		527		—		458		69
Transportation		718		—		537		181
Other		2,782		—		2,733		49
Total non-U.S. corporate		12,623		—		11,172		1,451
Residential mortgage-backed		4,209		—		4,123		86
Commercial mortgage-backed		3,414		—		3,392		22
Other asset-backed		3,068		—		2,843		225
Total fixed maturity securities		62,552		—		58,403		4,149
Equity securities		765		644		77		44
Other invested assets:
Derivative assets:
Interest rate swaps		70		—		70		—
Foreign currency swaps		12		—		12		—
Equity index options		81		—		—		81
Other foreign currency contracts		98		—		98		—
Total derivative assets		261		—		180		81
Securities lending collateral		237		—		237		—
Short-term investments		787		—		787		—
Total other invested assets		1,285		—		1,204		81
Reinsurance recoverable (1)		14		—		—		14
Separate account assets		7,264		7,264		—		—
Total assets	$	71,880	$	7,908	$	59,684	$	4,288

⁽¹⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

	December 31, 2016
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	6,036	$	—	$	6,034	$	2
State and political subdivisions		2,647		—		2,610		37
Non-U.S. government		2,107		—		2,107		—
U.S. corporate:
Utilities		4,550		—		3,974		576
Energy		2,300		—		2,090		210
Finance and insurance		6,097		—		5,311		786
Consumer—non-cyclical		4,734		—		4,613		121
Technology and communications		2,598		—		2,544		54
Industrial		1,223		—		1,175		48
Capital goods		2,258		—		2,106		152
Consumer—cyclical		1,530		—		1,272		258
Transportation		1,190		—		1,051		139
Other		348		—		205		143
Total U.S. corporate		26,828		—		24,341		2,487
Non-U.S. corporate:
Utilities		969		—		583		386
Energy		1,331		—		1,125		206
Finance and insurance		2,538		—		2,356		182
Consumer—non-cyclical		714		—		575		139
Technology and communications		987		—		920		67
Industrial		958		—		849		109
Capital goods		535		—		366		169
Consumer—cyclical		442		—		373		69
Transportation		677		—		496		181
Other		3,144		—		3,119		25
Total non-U.S. corporate		12,295		—		10,762		1,533
Residential mortgage-backed		4,379		—		4,336		43
Commercial mortgage-backed		3,129		—		3,075		54
Other asset-backed		3,151		—		3,006		145
Total fixed maturity securities		60,572		—		56,271		4,301
Equity securities		632		551		34		47
Other invested assets:
Trading securities		259		—		259		—
Derivative assets:
Interest rate swaps		596		—		596		—
Foreign currency swaps		4		—		4		—
Equity index options		72		—		—		72
Equity return swaps		1		—		1		—
Other foreign currency contracts		35		—		32		3
Total derivative assets		708		—		633		75
Securities lending collateral		534		—		534		—
Total other invested assets		1,501		—		1,426		75
Restricted other invested assets related to securitization entities		312		—		181		131
Reinsurance recoverable (1)		16		—		—		16
Separate account assets		7,299		7,299		—		—
Total assets	$	70,332	$	7,850	$	57,912	$	4,570

⁽¹⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value

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 or for the dates indicated:

(Amounts in millions)	Beginning balance as of July 1, 2017		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2017		Total gains (losses) included in net income (loss) attributable to assets still held
			Included in net income (loss)			Included in OCI
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	1	$	—		$	—		$	—	$	—		$	—	$	—		$	—	$	—		$	1	$	—
State and political subdivisions		37		1			(1	)		—		—			—		—			—		—			37		1
U.S. corporate:
Utilities		638		—			—			26		—			—		(2	)		—		—			662		—
Energy		160		—			—			—		—			—		(2	)		—		—			158		—
Finance and insurance		861		3			(52	)		22		(14	)		—		(157	)		8		(1	)		670		2
Consumer—non-cyclical		122		—			1			4		—			—		—			—		—			127		—
Technology and communications		58		1			(3	)		—		—			—		(1	)		—		(3	)		52		1
Industrial		61		—			—			—		—			—		—			—		(14	)		47		—
Capital goods		118		1			—			—		—			—		(1	)		—		—			118		1
Consumer—cyclical		266		—			—			—		—			—		(2	)		—		(2	)		262		—
Transportation		100		16			(10	)		—		—			—		(45	)		—		—			61		—
Other		176		—			—			—		(4	)		—		(2	)		—		—			170		—
Total U.S. corporate		2,560		21			(64	)		52		(18	)		—		(212	)		8		(20	)		2,327		4
Non-U.S. corporate:
Utilities		359		—			—			—		—			—		—			—		—			359		—
Energy		177		—			1			—		—			—		(1	)		—		—			177		—
Finance and insurance		172		1			1			—		—			—		(5	)		—		—			169		—
Consumer—non-cyclical		129		—			—			—		—			—		—			—		—			129		—
Technology and communications		48		1			1			—		(21	)		—		—			—		—			29		—
Industrial		112		—			—			13		—			—		—			14		—			139		—
Capital goods		149		—			1			—		—			—		—			—		—			150		—
Consumer—cyclical		67		—			—			—		—			—		—			2		—			69		—
Transportation		190		—			1			—		—			—		(10	)		—		—			181		—
Other		41		(2	)		1			—		(2	)		—		—			11		—			49		—
Total non-U.S. corporate		1,444		—			6			13		(23	)		—		(16	)		27		—			1,451		—
Residential mortgage-backed		73		—			—			22		—			—		(1	)		—		(8	)		86		—
Commercial mortgage-backed		52		(1	)		(2	)		14		—			—		—			—		(41	)		22		—
Other asset-backed		150		(1	)		1			52		—			—		(5	)		44		(16	)		225		—
Total fixed maturity securities		4,317		20			(60	)		153		(41	)		—		(234	)		79		(85	)		4,149		5
Equity securities		48		—			—			—		(1	)		—		—			—		(3	)		44		—
Other invested assets:
Derivative assets:
Equity index options		81		16			—			15		—			—		(31	)		—		—			81		13
Total derivative assets		81		16			—			15		—			—		(31	)		—		—			81		13
Total other invested assets		81		16			—			15		—			—		(31	)		—		—			81		13
Reinsurance recoverable (2)		15		(1	)		—			—		—			—		—			—		—			14		(1	)
Total Level 3 assets	$	4,461	$	35		$	(60	)	$	168	$	(42	)	$	—	$	(265	)	$	79	$	(88	)	$	4,288	$	17

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

(Amounts in millions)	Beginning balance as of July 1, 2016		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2016		Total gains (losses) included in net income (loss) attributable to assets still held
			Included in net income (loss)			Included in OCI
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	2	$	—		$	—		$	—	$	—		$	—	$	—		$	—	$	—		$	2	$	—
State and political subdivisions		36		1			—			—		—			—		—			—		(1	)		36		1
U.S. corporate:
Utilities		552		1			4			54		(6	)		—		(1	)		1		(43	)		562		—
Energy		208		—			3			—		—			—		(8	)		—		(1	)		202		—
Finance and insurance		775		4			14			27		(5	)		—		(32	)		37		—			820		5
Consumer—non-cyclical		102		—			1			5		(5	)		—		—			—		—			103		—
Technology and communications		40		1			—			12		—			—		—			—		—			53		1
Industrial		78		—			—			—		—			—		—			—		—			78		—
Capital goods		135		—			1			—		—			—		—			—		—			136		1
Consumer—cyclical		254		—			—			19		(5	)		—		(1	)		1		(3	)		265		—
Transportation		129		—			1			—		—			—		(6	)		—		—			124		—
Other		147		—			—			—		—			—		(1	)		16		—			162		—
Total U.S. corporate		2,420		6			24			117		(21	)		—		(49	)		55		(47	)		2,505		7
Non-U.S. corporate:
Utilities		331		—			1			52		(5	)		—		—			—		(10	)		369		—
Energy		234		—			9			8		(9	)		—		(17	)		—		—			225		—
Finance and insurance		201		—			3			11		(1	)		—		—			—		—			214		—
Consumer—non-cyclical		168		2			(1	)		3		(3	)		—		(37	)		12		—			144		—
Technology and communications		80		—			1			2		(2	)		—		—			—		—			81		—
Industrial		95		—			2			17		(17	)		—		—			15		—			112		—
Capital goods		212		1			(2	)		—		—			—		(5	)		—		(33	)		173		1
Consumer—cyclical		71		—			—			—		—			—		—			—		—			71		—
Transportation		186		1			(1	)		—		—			—		(14	)		1		—			173		—
Other		29		(2	)		2			—		(12	)		—		—			10		—			27		(2	)
Total non-U.S. corporate		1,607		2			14			93		(49	)		—		(73	)		38		(43	)		1,589		(1	)
Residential mortgage-backed		96		—			—			—		(45	)		—		(8	)		5		(11	)		37		—
Commercial mortgage-backed		33		—			(3	)		—		—			—		—			—		(2	)		28		—
Other asset-backed		198		(6	)		7			—		(5	)		—		(5	)		25		(64	)		150		(6	)
Total fixed maturity securities		4,392		3			42			210		(120	)		—		(135	)		123		(168	)		4,347		1
Equity securities		44		—			—			2		—			—		—			—		—			46		—
Other invested assets:
Derivative assets:
Equity index options		57		9			—			15		—			—		(20	)		—		—			61		—
Other foreign currency contracts		1		—			—			—		—			—		—			—		—			1		—
Total derivative assets		58		9			—			15		—			—		(20	)		—		—			62		—
Total other invested assets		58		9			—			15		—			—		(20	)		—		—			62		—
Restricted other invested assets related to securitization entities		131		—			—			—		—			—		—			—		—			131		—
Reinsurance recoverable (2)		26		(3	)		—			—		—			1		—			—		—			24		(3	)
Total Level 3 assets	$	4,651	$	9		$	42		$	227	$	(120	)	$	1	$	(155	)	$	123	$	(168	)	$	4,610	$	(2	)

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

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 or for the dates indicated:

(Amounts in millions)	Beginning balance as of January 1, 2017		Total realized and unrealized gains (losses)						Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2017		Total gains (losses) included in net income (loss) attributable to assets still held
			Included in net income (loss)			Included in OCI
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	2	$	—		$	—		$	—	$	—		$	—	$	(1	)	$	—	$	—		$	1	$	—
State and political subdivisions		37		2			(2	)		—		—			—		—			—		—			37		2
U.S. corporate:
Utilities		576		—			20			70		—			—		(4	)		30		(30	)		662		—
Energy		210		(1	)		6			—		(10	)		—		(32	)		1		(16	)		158		(1	)
Finance and insurance		786		11			(1	)		75		(31	)		—		(163	)		8		(15	)		670		10
Consumer—non-cyclical		121		—			2			4		—			—		—			—		—			127		—
Technology and
communications		54		2			3			14		—			—		(1	)		—		(20	)		52		2
Industrial		48		—			—			13		—			—		—			—		(14	)		47		—
Capital goods		152		1			3			—		—			—		(1	)		—		(37	)		118		1
Consumer—cyclical		258		—			9			2		—			—		(5	)		—		(2	)		262		—
Transportation		139		17			(5	)		—		—			—		(48	)		—		(42	)		61		1
Other		143		—			1			—		(4	)		—		(7	)		37		—			170		—
Total U.S. corporate		2,487		30			38			178		(45	)		—		(261	)		76		(176	)		2,327		13
Non-U.S. corporate:
Utilities		386		—			5			30		—			—		—			—		(62	)		359		—
Energy		206		—			6			—		(1	)		—		(1	)		—		(33	)		177		—
Finance and insurance		182		4			9			4		—			—		(30	)		—		—			169		2
Consumer—non-cyclical		139		—			2			—		—			—		(12	)		—		—			129		—
Technology and
communications		67		1			1			—		(21	)		—		(19	)		—		—			29		—
Industrial		109		—			3			13		—			—		—			14		—			139		—
Capital goods		169		—			3			—		—			—		(15	)		—		(7	)		150		—
Consumer—cyclical		69		—			—			—		—			—		(2	)		2		—			69		—
Transportation		181		—			4			6		—			—		(10	)		11		(11	)		181		—
Other		25		(2	)		2			15		(2	)		—		—			11		—			49		—
Total non-U.S. corporate		1,533		3			35			68		(24	)		—		(89	)		38		(113	)		1,451		2
Residential mortgage-backed		43		—			1			26		—			—		(2	)		26		(8	)		86		—
Commercial mortgage-backed		54		(2	)		4			23		(9	)		—		—			—		(48	)		22		—
Other asset-backed		145		(8	)		11			116		(35	)		—		(12	)		58		(50	)		225		—
Total fixed maturity securities		4,301		25			87			411		(113	)		—		(365	)		198		(395	)		4,149		17
Equity securities		47		—			—			1		(1	)		—		—			—		(3	)		44		—
Other invested assets:
Derivative assets:
Equity index options		72		42			—			36		—			—		(69	)		—		—			81		21
Other foreign currency contracts		3		(3	)		—			—		—			—		—			—		—			—		(2	)
Total derivative assets		75		39			—			36		—			—		(69	)		—		—			81		19
Total other invested assets		75		39			—			36		—			—		(69	)		—		—			81		19
Restricted other invested assets related to securitization entities		131		—			—			—		(131	)		—		—			—		—			—		—
Reinsurance recoverable (2)		16		(3	)		—			—		—			1		—			—		—			14		(3	)
Total Level 3 assets	$	4,570	$	61		$	87		$	448	$	(245	)	$	1	$	(434	)	$	198	$	(398	)	$	4,288	$	33

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

	Beginning balance as of January 1, 2016		Total realized and unrealized gains (losses)																Transfer into Level 3 (1)		Transfer out of Level 3 (1)			Ending balance as of September 30, 2016		Total gains (losses) included in net income (loss) attributable to assets still held
(Amounts in millions)			Included in net income (loss)			Included in OCI			Purchases		Sales			Issuances		Settlements
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3	$	—		$	—		$	—	$	—		$	—	$	(1	)	$	—	$	—		$	2	$	—
State and political subdivisions		35		2			(1	)		7		—			—		—			—		(7	)		36		2
U.S. corporate:
Utilities		449		1			28			101		(6	)		—		(9	)		68		(70	)		562		—
Energy		253		—			(1	)		—		—			—		(10	)		7		(47	)		202		—
Finance and insurance		715		12			58			54		(14	)		—		(59	)		72		(18	)		820		11
Consumer—non-cyclical		109		—			7			5		(18	)		—		—			—		—			103		—
Technology and communications		35		2			4			12		—			—		—			—		—			53		2
Industrial		61		—			5			—		—			—		—			12		—			78		—
Capital goods		180		1			6			—		(10	)		—		—			—		(41	)		136		1
Consumer—cyclical		239		4			9			44		(5	)		—		(42	)		19		(3	)		265		—
Transportation		106		1			9			17		—			—		(14	)		5		—			124		1
Other		182		1			1			—		—			—		(5	)		16		(33	)		162		1
Total U.S. corporate		2,329		22			126			233		(53	)		—		(139	)		199		(212	)		2,505		16
Non-U.S. corporate:
Utilities		287		—			9			62		(5	)		—		—			26		(10	)		369		—
Energy		252		—			33			8		(11	)		—		(31	)		—		(26	)		225		—
Finance and insurance		191		2			11			11		(1	)		—		—			—		—			214		2
Consumer—non-cyclical		169		2			9			3		(3	)		—		(48	)		12		—			144		—
Technology and communications		62		—			6			18		(5	)		—		—			—		—			81		—
Industrial		84		—			7			17		(20	)		—		—			24		—			112		—
Capital goods		213		1			7			—		—			—		(15	)		—		(33	)		173		1
Consumer—cyclical		71		—			2			—		—			—		(2	)		—		—			71		—
Transportation		144		1			3			—		—			—		(14	)		39		—			173		—
Other		72		(2	)		4			—		(12	)		—		(7	)		10		(38	)		27		(2	)
Total non-U.S. corporate		1,545		4			91			119		(57	)		—		(117	)		111		(107	)		1,589		1
Residential mortgage-backed		116		—			2			51		(45	)		—		(13	)		13		(87	)		37		—
Commercial mortgage-backed		10		—			1			23		—			—		(4	)		—		(2	)		28		—
Other asset-backed		1,142		(16	)		3			12		(25	)		—		(19	)		66		(1,013	)		150		(16	)
Total fixed maturity securities		5,180		12			222			445		(180	)		—		(293	)		389		(1,428	)		4,347		3
Equity securities		38		—			—			8		—			—		—			—		—			46		—
Other invested assets:
Derivative assets:
Credit default swaps		1		—			—			—		—			—		(1	)		—		—			—		—
Equity index options		30		5			—			51		—			—		(25	)		—		—			61		(4	)
Other foreign currency contracts		3		(2	)		—			1		—			—		(1	)		—		—			1		(2	)
Total derivative assets		34		3			—			52		—			—		(27	)		—		—			62		(6	)
Total other invested assets		34		3			—			52		—			—		(27	)		—		—			62		(6	)
Restricted other invested assets related to securitization entities		232		(55	)		—			—		—			—		(46	)		—		—			131		9
Reinsurance recoverable (2)		17		5			—			—		—			2		—			—		—			24		5
Total Level 3 assets	$	5,501	$	(35	)	$	222		$	505	$	(180	)	$	2	$	(366	)	$	389	$	(1,428	)	$	4,610	$	11

⁽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.

⁽²⁾ Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value

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 income statement line item in which these gains and losses were presented for the periods indicated:

	Three months ended September 30,					Nine months ended September 30,
(Amounts in millions)	2017		2016			2017		2016
Total realized and unrealized gains (losses) included in net income (loss):
Net investment income	$	7	$	11		$	22	$	(33	)
Net investment gains (losses)		28		(2	)		39		(2	)
Total	$	35	$	9		$	61	$	(35	)
Total gains (losses) included in net income (loss) attributable to assets still held:
Net investment income	$	5	$	9		$	18	$	23
Net investment gains (losses)		12		(11	)		15		(12	)
Total	$	17	$	(2	)	$	33	$	11

Summary of Significant Unobservable Inputs Used for Certain Asset Fair Value Measurements

The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of September 30, 2017:

(Amounts in millions)	Valuation technique		Fair value		Unobservable input		Range		Weighted- average
Fixed maturity securities:
U.S. corporate:
Utilities		Internal models	$	647		Credit spreads		73bps - 379bps		135bps
Energy		Internal models		86		Credit spreads		80bps - 193bps		142bps
Finance and insurance		Internal models		629		Credit spreads		70bps - 354bps		180bps
Consumer—non-cyclical		Internal models		127		Credit spreads		88bps - 247bps		132bps
Technology and communications		Internal models		52		Credit spreads		60bps - 353bps		299bps
Industrial		Internal models		20		Credit spreads		90bps - 207bps		162bps
Capital goods		Internal models		118		Credit spreads		90bps - 247bps		140bps
Consumer—cyclical		Internal models		236		Credit spreads		56bps - 210bps		129bps
Transportation		Internal models		54		Credit spreads		56bps - 123bps		89bps
Other		Internal models		161		Credit spreads		64bps - 135bps		75bps
Total U.S. corporate		Internal models	$	2,130		Credit spreads		56bps - 379bps		146bps
Non-U.S. corporate:
Utilities		Internal models	$	358		Credit spreads		77bps - 158bps		116bps
Energy		Internal models		146		Credit spreads		90bps - 169bps		116bps
Finance and insurance		Internal models		160		Credit spreads		69bps - 179bps		107bps
Consumer—non-cyclical		Internal models		118		Credit spreads		56bps - 191bps		112bps
Technology and communications		Internal models		29		Credit spreads		123bps - 222bps		171bps
Industrial		Internal models		130		Credit spreads		109bps - 247bps		146bps
Capital goods		Internal models		121		Credit spreads		88bps - 145bps		112bps
Consumer—cyclical		Internal models		69		Credit spreads		87bps - 169bps		112bps
Transportation		Internal models		161		Credit spreads		78bps - 210bps		115bps
Other		Internal models		49		Credit spreads		101bps - 233bps		181bps
Total non-U.S. corporate		Internal models	$	1,341		Credit spreads		56bps - 247bps		120bps
Derivative assets:
Equity index options		Discounted cash flows	$	81		Equity index volatility		6% - 27%		18	%

Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis

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

	September 30, 2017
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
GMWB embedded derivatives (1)	$	257	$	—	$	—	$	257
Fixed index annuity embedded derivatives		394		—		—		394
Indexed universal life embedded derivatives		14		—		—		14
Total policyholder account balances		665		—		—		665
Derivative liabilities:
Interest rate swaps		39		—		39		—
Equity return swaps		2		—		2		—
Other foreign currency contracts		23		—		23		—
Total derivative liabilities		64		—		64		—
Borrowings related to securitization entities		12		—		—		12
Total liabilities	$	741	$	—	$	64	$	677

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

	December 31, 2016
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
GMWB embedded derivatives (1)	$	303	$	—	$	—	$	303
Fixed index annuity embedded derivatives		344		—		—		344
Indexed universal life embedded derivatives		11		—		—		11
Total policyholder account balances		658		—		—		658
Derivative liabilities:
Interest rate swaps		349		—		349		—
Foreign currency swaps		5		—		5		—
Credit default swaps related to securitization entities		1		—		1		—
Equity return swaps		1		—		1		—
Other foreign currency contracts		27		—		27		—
Total derivative liabilities		383		—		383		—
Borrowings related to securitization entities		12		—		—		12
Total liabilities	$	1,053	$	—	$	383	$	670

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value

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 or for the dates indicated:

	Beginning balance as of July 1, 2017		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3		Ending balance as of September 30, 2017		Total (gains) losses included in net (income) loss attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	281	$	(31	)	$	—	$	—	$	—	$	7	$	—		$	—	$	—	$	257	$	(31	)
Fixed index annuity embedded derivatives		376		21			—		—		—		—		(3	)		—		—		394		21
Indexed universal life embedded derivatives		13		(2	)		—		—		—		3		—			—		—		14		(2	)
Total policyholder account balances		670		(12	)		—		—		—		10		(3	)		—		—		665		(12	)
Borrowings related to securitization entities		12		—			—		—		—		—		—			—		—		12		—
Total Level 3 liabilities	$	682	$	(12	)	$	—	$	—	$	—	$	10	$	(3	)	$	—	$	—	$	677	$	(12	)

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

(Amounts in millions)	Beginning balance as of July 1, 2016		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3		Ending balance as of September 30, 2016		Total (gains) losses included in net (income) loss attributable to liabilities still held
			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	494	$	(63	)	$	—	$	—	$	—	$	8	$	—		$	—	$	—	$	439	$	(59	)
Fixed index annuity embedded derivatives		351		16			—		—		—		—		(3	)		—		—		364		16
Indexed universal life embedded derivatives		13		(3	)		—		—		—		3		—			—		—		13		(3	)
Total policyholder account balances		858		(50	)		—		—		—		11		(3	)		—		—		816		(46	)
Borrowings related to securitization entities		11		—			—		—		—		—		—			—		—		11		—
Total Level 3 liabilities	$	869	$	(50	)	$	—	$	—	$	—	$	11	$	(3	)	$	—	$	—	$	827	$	(46	)

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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 or for the dates indicated:

	Beginning balance as of January 1, 2017		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3		Ending balance as of September 30, 2017		Total (gains) losses included in net (income) loss attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	303	$	(67	)	$	—	$	—	$	—	$	21	$	—		$	—	$	—	$	257	$	(64	)
Fixed index annuity embedded derivatives		344		57			—		—		—		—		(7	)		—		—		394		57
Indexed universal life embedded derivatives		11		(5	)		—		—		—		8		—			—		—		14		(5	)
Total policyholder account balances		658		(15	)		—		—		—		29		(7	)		—		—		665		(12	)
Borrowings related to securitization entities		12		1			—		—		—		—		(1	)		—		—		12		1
Total Level 3 liabilities	$	670	$	(14	)	$	—	$	—	$	—	$	29	$	(8	)	$	—	$	—	$	677	$	(11	)

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

	Beginning balance as of January 1, 2016		Total realized and unrealized (gains) losses					Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3			Ending balance as of September 30, 2016		Total (gains) losses included in net (income) loss attributable to liabilities still held
(Amounts in millions)			Included in net (income) loss			Included in OCI
Policyholder account balances:
GMWB embedded derivatives (1)	$	352	$	63		$	—	$	—	$	—	$	24	$	—		$	—	$	—		$	439	$	72
Fixed index annuity embedded derivatives		342		22			—		—		—		10		(10	)		—		—			364		22
Indexed universal life embedded derivatives		10		(6	)		—		—		—		9		—			—		—			13		(6	)
Total policyholder account balances		704		79			—		—		—		43		(10	)		—		—			816		88
Derivative liabilities:
Credit default swaps related to securitization entities		14		(13	)		—		—		—		—		2			—		(3	)		—		—
Total derivative liabilities		14		(13	)		—		—		—		—		2			—		(3	)		—		—
Borrowings related to securitization entities		81		(65	)		—		—		—		—		(5	)		—		—			11		—
Total Level 3 liabilities	$	799	$	1		$	—	$	—	$	—	$	43	$	(13	)	$	—	$	(3	)	$	827	$	88

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

Gains and Losses Included in Net (Income) Loss from Liabilities Measured at Fair Value

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 income statement line item in which these gains and losses were presented for the periods indicated:

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Total realized and unrealized (gains) losses included in net (income) loss:
Net investment income	$	—		$	—		$	—		$	—
Net investment (gains) losses		(12	)		(50	)		(14	)		1
Total	$	(12	)	$	(50	)	$	(14	)	$	1
Total (gains) losses included in net (income) loss attributable to liabilities still held:
Net investment income	$	—		$	—		$	—		$	—
Net investment (gains) losses		(12	)		(46	)		(11	)		88
Total	$	(12	)	$	(46	)	$	(11	)	$	88

Summary of Significant Unobservable Inputs Used for Certain Liability Fair Value Measurements

The following table presents a summary of the significant unobservable inputs used for certain liability fair value measurements that are based on internal models and classified as Level 3 as of September 30, 2017:

(Amounts in millions)	Valuation technique		Fair value		Unobservable input		Range		Weighted- average
Policyholder account balances:
						Withdrawal utilization rate		40% - 84%		65%
						Lapse rate		—  % - 8%		4%
						Non-performance risk (credit spreads)		26bps - 83bps		66bp	s
GMWB embedded derivatives (1)		Stochastic cash flow model		$257		Equity index volatility		13% - 24%		20%
Fixed index annuity embedded derivatives		Option budget method		$394		Expected future interest credited		—  % - 2%		1%
Indexed universal life embedded derivatives		Option budget method		$14		Expected future interest credited		3% - 8%		5%

⁽¹⁾ Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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Deferred Acquisition Costs (Tables)

9 Months Ended

Sep. 30, 2017

Activity Impacting Deferred Acquisition Costs

The following table presents the activity impacting deferred acquisition costs (“DAC”) for the dates indicated:

	As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016
Unamortized beginning balance	$	4,241		$	4,569
Impact of foreign currency translation		12			8
Costs deferred		67			124
Amortization, net of interest accretion		(261	)		(257	)
Unamortized ending balance		4,059			4,444
Accumulated effect of net unrealized investment (gains) losses		(1,717	)		(462	)
Ending balance	$	2,342		$	3,982

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Liability for Policy and Contract Claims (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Liability for Policy and Contract Claims

The following table sets forth changes in our liability for policy and contract claims as of the dates indicated:

	As of or for the nine months ended September 30,
(Amounts in millions)	2017			2016
Beginning balance	$	9,256		$	8,095
Less reinsurance recoverables		(2,409	)		(2,122	)
Net beginning balance		6,847			5,973
Incurred related to insured events of:
Current year		2,748			2,569
Prior years		(306	)		320
Total incurred		2,442			2,889
Paid related to insured events of:
Current year		(755	)		(727	)
Prior years		(1,746	)		(1,646	)
Total paid		(2,501	)		(2,373	)
Interest on liability for policy and contract claims		223			188
Foreign currency translation		27			14
Net ending balance		7,038			6,691
Add reinsurance recoverables		2,346			2,178
Ending balance	$	9,384		$	8,869

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2017

Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate

The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated:

	Three months ended September 30,										Nine months ended September 30,
(Amounts in millions)	2017					2016					2017					2016
Pre-tax income (loss)	$	286				$	(125	)			$	1,019				$	376
Statutory U.S. federal income tax rate	$	100		35.0	%	$	(44	)	35.0	%	$	357		35.0	%	$	132		35.0	%
Increase (reduction) in rate resulting from:
State income tax, net of federal income tax effect		1		0.1			—		—			(2	)	(0.2	)		1		0.2
Tax favored investments		6		1.9			1		(0.7	)		3		0.3			(2	)	(0.5	)
Effect of foreign operations		(6	)	(2.0	)		5		(3.9	)		(14	)	(1.3	)		(12	)	(3.3	)
Non-deductible expenses		—		—			(1	)	0.5			1		0.1			(1	)	(0.1	)
Valuation allowance		—		—			265		(212.9	)		—		—			240		63.8
Stock-based compensation		1		0.5			2		(1.8	)		3		0.2			5		1.4
Loss on sale of business		—		—			—		—			—		—			(1	)	(0.2	)
Other, net		—		—			(6	)	4.8			—		—			(7	)	(1.8	)
Effective rate	$	102		35.5	%	$	222		(179.0	)%	$	348		34.1	%	$	355		94.5	%

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2017

Summary of Revenues of Major Product Groups for Segments and Corporate and Other Activities

The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated:

	Three months ended September 30,					Nine months ended September 30,
(Amounts in millions)	2017		2016			2017			2016
Revenues:
U.S. Mortgage Insurance segment	$	194	$	186		$	570		$	537
Canada Mortgage Insurance segment		220		156			593			463
Australia Mortgage Insurance segment		98		115			317			333
U.S. Life Insurance segment:
Long-term care insurance		1,033		980			3,063			3,051
Life insurance		389		418			1,217			953
Fixed annuities		190		218			605			613
U.S. Life Insurance segment		1,612		1,616			4,885			4,617
Runoff segment		90		84			266			218
Corporate and Other activities		1		(7	)		(22	)		3
Total revenues	$	2,215	$	2,150		$	6,609		$	6,171

Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities

The following tables present the reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated:

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	107		$	(380	)	$	464		$	(155	)
Add: net income attributable to noncontrolling interests		68			48			198			151
Net income (loss)		175			(332	)		662			(4	)
Income (loss) from discontinued operations, net of taxes		(9	)		15			(9	)		(25	)
Income (loss) from continuing operations		184			(347	)		671			21
Less: income from continuing operations attributable to noncontrolling interests		68			48			198			151
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders		116			(395	)		473			(130	)
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net (1)		(62	)		(18	)		(161	)		(38	)
(Gains) losses from sale of businesses		—			—			—			(3	)
(Gains) losses on early extinguishment of debt, net		—			—			—			(48	)
Losses from life block transactions		—			—			—			9
Expenses related to restructuring		1			2			2			22
Fees associated with bond consent solicitation		—			—			—			18
Taxes on adjustments		21			6			56			(9	)
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders	$	76		$	(405	)	$	370		$	(179	)

⁽¹⁾ For the three months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for net investment (gains) losses attributable to noncontrolling interests of $23 million and $2 million, respectively. For the nine months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(15) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $59 million and $8 million, respectively.

	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:
U.S. Mortgage Insurance segment	$	73		$	67		$	237		$	189
Canada Mortgage Insurance segment		37			36			114			107
Australia Mortgage Insurance segment		12			14			37			48
U.S. Life Insurance segment:
Long-term care insurance		(5	)		(270	)		42			(199	)
Life insurance		(9	)		48			6			110
Fixed annuities		13			15			43			28
U.S. Life Insurance segment		(1	)		(207	)		91			(61	)
Runoff segment		13			12			38			22
Corporate and Other activities		(58	)		(327	)		(147	)		(484	)
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders	$	76		$	(405	)	$	370		$	(179	)

Summary of Total Assets for Segments and Corporate and Other Activities

The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated:

(Amounts in millions)	September 30, 2017		December 31, 2016
Assets:
U.S. Mortgage Insurance segment	$	3,015	$	2,674
Canada Mortgage Insurance segment		5,435		4,884
Australia Mortgage Insurance segment		2,814		2,619
U.S. Life Insurance segment		81,858		81,933
Runoff segment		11,149		11,352
Corporate and Other activities		358		1,196
Total assets	$	104,629	$	104,658

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Changes in Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2017

Component of Changes in Accumulated Other Comprehensive Income (Loss), Net of Taxes

The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated:

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of July 1, 2017	$	1,180		$	2,064		$	(149	)	$	3,095
OCI before reclassifications		(70	)		10			81			21
Amounts reclassified from (to) OCI		(19	)		(22	)		—			(41	)
Current period OCI		(89	)		(12	)		81			(20	)
Balances as of September 30, 2017 before noncontrolling interests		1,091			2,052			(68	)		3,075
Less: change in OCI attributable to noncontrolling interests		(17	)		—			57			40
Balances as of September 30, 2017	$	1,108		$	2,052		$	(125	)	$	3,035

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of July 1, 2016	$	2,789		$	2,439		$	(140	)	$	5,088
OCI before reclassifications		86			72			(1	)		157
Amounts reclassified from (to) OCI		(9	)		(18	)		—			(27	)
Current period OCI		77			54			(1	)		130
Balances as of September 30, 2016 before noncontrolling interests		2,866			2,493			(141	)		5,218
Less: change in OCI attributable to noncontrolling interests		6			—			10			16
Balances as of September 30, 2016	$	2,860		$	2,493		$	(151	)	$	5,202

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of January 1, 2017	$	1,262		$	2,085		$	(253	)	$	3,094
OCI before reclassifications		(95	)		29			261			195
Amounts reclassified from (to) OCI		(77	)		(62	)		—			(139	)
Current period OCI		(172	)		(33	)		261			56
Balances as of September 30, 2017 before noncontrolling interests		1,090			2,052			8			3,150
Less: change in OCI attributable to noncontrolling interests		(18	)		—			133			115
Balances as of September 30, 2017	$	1,108		$	2,052		$	(125	)	$	3,035

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of January 1, 2016	$	1,254		$	2,045		$	(289	)	$	3,010
OCI before reclassifications		1,692			507			223			2,422
Amounts reclassified from (to) OCI		(62	)		(59	)		—			(121	)
Current period OCI		1,630			448			223			2,301
Balances as of September 30, 2016 before noncontrolling interests		2,884			2,493			(66	)		5,311
Less: change in OCI attributable to noncontrolling interests		24			—			85			109
Balances as of September 30, 2016	$	2,860		$	2,493		$	(151	)	$	5,202

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾ See note 5 for additional information.

Reclassifications in (out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes

The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented:

	Amount reclassified from accumulated other comprehensive income (loss)												Affected line item in the consolidated statements of income
	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2017			2016			2017			2016
Net unrealized investment (gains) losses:
Unrealized (gains) losses on investments (1)	$	(29	)	$	(13	)	$	(118	)	$	(95	)	Net investment (gains) losses
Provision for income taxes		10			4			41			33		Provision for income taxes
Total	$	(19	)	$	(9	)	$	(77	)	$	(62	)
Derivatives qualifying as hedges:
Interest rate swaps hedging assets	$	(34	)	$	(27	)	$	(95	)	$	(80	)	Net investment income
Interest rate swaps hedging assets		—			—			(2	)		(1	)	Net investment (gains) losses
Inflation indexed swaps		—			—			—			(2	)	Net investment income
Inflation indexed swaps		—			—			—			(7	)	Net investment (gains) losses
Provision for income taxes		12			9			35			31		Provision for income taxes
Total	$	(22	)	$	(18	)	$	(62	)	$	(59	)

⁽¹⁾ Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.

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Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Condensed Consolidating Balance Sheet

The following table presents the condensed consolidating balance sheet information as of September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value	$	—		$	—		$	62,752		$	(200	)	$	62,552
Equity securities available-for-sale, at fair value		—			—			765			—			765
Commercial mortgage loans		—			—			6,268			—			6,268
Restricted commercial mortgage loans related to securitization entities		—			—			111			—			111
Policy loans		—			—			1,818			—			1,818
Other invested assets		—			75			1,517			(2	)		1,590
Investments in subsidiaries		13,191			12,459			—			(25,650	)		—
Total investments		13,191			12,534			73,231			(25,852	)		73,104
Cash and cash equivalents		—			754			2,082			—			2,836
Accrued investment income		—			—			639			—			639
Deferred acquisition costs		—			—			2,342			—			2,342
Intangible assets and goodwill		—			—			315			—			315
Reinsurance recoverable		—			—			17,553			—			17,553
Other assets		—			90			470			(8	)		552
Intercompany notes receivable		—			161			33			(194	)		—
Deferred tax assets		—			—			24			—			24
Separate account assets		—			—			7,264			—			7,264
Total assets	$	13,191		$	13,539		$	103,953		$	(26,054	)	$	104,629
Liabilities and equity
Liabilities:
Future policy benefits	$	—		$	—		$	38,022		$	—		$	38,022
Policyholder account balances		—			—			24,531			—			24,531
Liability for policy and contract claims		—			—			9,384			—			9,384
Unearned premiums		—			—			3,512			—			3,512
Other liabilities		8			163			1,842			(11	)		2,002
Intercompany notes payable		145			232			17			(394	)		—
Borrowings related to securitization entities		—			—			59			—			59
Non-recourse funding obligations		—			—			310			—			310
Long-term borrowings		—			3,722			502			—			4,224
Deferred tax liability		(31	)		(862	)		1,127			—			234
Separate account liabilities		—			—			7,264			—			7,264
Total liabilities		122			3,255			86,570			(405	)		89,542
Equity:
Common stock		1			—			3			(3	)		1
Additional paid-in capital		11,973			9,096			18,381			(27,477	)		11,973
Accumulated other comprehensive income (loss)		3,035			3,040			3,057			(6,097	)		3,035
Retained earnings		760			(1,852	)		(6,376	)		8,228			760
Treasury stock, at cost		(2,700	)		—			—			—			(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		13,069			10,284			15,065			(25,349	)		13,069
Noncontrolling interests		—			—			2,318			(300	)		2,018
Total equity		13,069			10,284			17,383			(25,649	)		15,087
Total liabilities and equity	$	13,191		$	13,539		$	103,953		$	(26,054	)	$	104,629

The following table presents the condensed consolidating balance sheet information as of December 31, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Assets
Investments:
Fixed maturity securities available-for-sale, at fair value	$	—		$	—		$	60,772		$	(200	)	$	60,572
Equity securities available-for-sale, at fair value		—			—			632			—			632
Commercial mortgage loans		—			—			6,111			—			6,111
Restricted commercial mortgage loans related to securitization entities		—			—			129			—			129
Policy loans		—			—			1,742			—			1,742
Other invested assets		—			105			1,966			—			2,071
Restricted other invested assets related to securitization entities, at fair value		—			—			312			—			312
Investments in subsidiaries		12,730			12,308			—			(25,038	)		—
Total investments		12,730			12,413			71,664			(25,238	)		71,569
Cash and cash equivalents		—			998			1,786			—			2,784
Accrued investment income		—			—			663			(4	)		659
Deferred acquisition costs		—			—			3,571			—			3,571
Intangible assets and goodwill		—			—			348			—			348
Reinsurance recoverable		—			—			17,755			—			17,755
Other assets		9			134			530			—			673
Intercompany notes receivable		—			84			67			(151	)		—
Deferred tax assets		28			—			(28	)		—			—
Separate account assets		—			—			7,299			—			7,299
Total assets	$	12,767		$	13,629		$	103,655		$	(25,393	)	$	104,658
Liabilities and equity
Liabilities:
Future policy benefits	$	—		$	—		$	37,063		$	—		$	37,063
Policyholder account balances		—			—			25,662			—			25,662
Liability for policy and contract claims		—			—			9,256			—			9,256
Unearned premiums		—			—			3,378			—			3,378
Other liabilities		39			301			2,581			(5	)		2,916
Intercompany notes payable		84			267			—			(351	)		—
Borrowings related to securitization entities		—			—			74			—			74
Non-recourse funding obligations		—			—			310			—			310
Long-term borrowings		—			3,716			464			—			4,180
Deferred tax liability		—			(816	)		869			—			53
Separate account liabilities		—			—			7,299			—			7,299
Total liabilities		123			3,468			86,956			(356	)		90,191
Equity:
Common stock		1			—			—			—			1
Additional paid-in capital		11,962			9,097			20,252			(29,349	)		11,962
Accumulated other comprehensive income (loss)		3,094			3,135			3,116			(6,251	)		3,094
Retained earnings		287			(2,071	)		(8,792	)		10,863			287
Treasury stock, at cost		(2,700	)		—			—			—			(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		12,644			10,161			14,576			(24,737	)		12,644
Noncontrolling interests		—			—			2,123			(300	)		1,823
Total equity		12,644			10,161			16,699			(25,037	)		14,467
Total liabilities and equity	$	12,767		$	13,629		$	103,655		$	(25,393	)	$	104,658

Condensed Consolidating Income Statement

The following table presents the condensed consolidating income statement information for the three months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	1,135		$	—		$	1,135
Net investment income		(1	)		2			800			(4	)		797
Net investment gains (losses)		—			(4	)		89			—			85
Policy fees and other income		—			4			195			(1	)		198
Total revenues		(1	)		2			2,219			(5	)		2,215
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			1,344			—			1,344
Interest credited		—			—			164			—			164
Acquisition and operating expenses, net of deferrals		20			(2	)		247			—			265
Amortization of deferred acquisition costs and intangibles		—			—			83			—			83
Interest expense		—			66			12			(5	)		73
Total benefits and expenses		20			64			1,850			(5	)		1,929
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(21	)		(62	)		369			—			286
Provision (benefit) for income taxes		(5	)		(21	)		128			—			102
Equity in income of subsidiaries		123			71			—			(194	)		—
Income from continuing operations		107			30			241			(194	)		184
Income (loss) from discontinued operations, net of taxes		—			4			(13	)		—			(9	)
Net income		107			34			228			(194	)		175
Less: net income attributable to noncontrolling interests		—			—			68			—			68
Net income available to Genworth Financial, Inc.’s common stockholders	$	107		$	34		$	160		$	(194	)	$	107

The following table presents the condensed consolidating income statement information for the three months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	1,108		$	—		$	1,108
Net investment income		(2	)		1			810			(4	)		805
Net investment gains (losses)		—			(1	)		21			—			20
Policy fees and other income		—			—			217			—			217
Total revenues		(2	)		—			2,156			(4	)		2,150
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			1,662			—			1,662
Interest credited		—			—			173			—			173
Acquisition and operating expenses, net of deferrals		13			—			256			—			269
Amortization of deferred acquisition costs and intangibles		—			—			94			—			94
Interest expense		—			69			12			(4	)		77
Total benefits and expenses		13			69			2,197			(4	)		2,275
Loss from continuing operations before income taxes and equity in loss of subsidiaries		(15	)		(69	)		(41	)		—			(125	)
Provision (benefit) for income taxes		(4	)		155			71			—			222
Equity in loss of subsidiaries		(369	)		(207	)		—			576			—
Loss from continuing operations		(380	)		(431	)		(112	)		576			(347	)
Income from discontinued operations, net of taxes		—			11			4			—			15
Net loss		(380	)		(420	)		(108	)		576			(332	)
Less: net income attributable to noncontrolling interests		—			—			48			—			48
Net loss available to Genworth Financial, Inc.’s common stockholders	$	(380	)	$	(420	)	$	(156	)	$	576		$	(380	)

The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	3,382		$	—		$	3,382
Net investment income		(3	)		5			2,397			(11	)		2,388
Net investment gains (losses)		—			(12	)		232			—			220
Policy fees and other income		—			3			617			(1	)		619
Total revenues		(3	)		(4	)		6,628			(12	)		6,609
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			3,796			—			3,796
Interest credited		—			—			494			—			494
Acquisition and operating expenses, net of deferrals		48			(2	)		729			—			775
Amortization of deferred acquisition costs and intangibles		—			—			316			—			316
Interest expense		—			187			34			(12	)		209
Total benefits and expenses		48			185			5,369			(12	)		5,590
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(51	)		(189	)		1,259			—			1,019
Provision (benefit) for income taxes		(9	)		(65	)		422			—			348
Equity in income of subsidiaries		506			339			—			(845	)		—
Income from continuing operations		464			215			837			(845	)		671
Income (loss) from discontinued operations, net of taxes		—			4			(13	)		—			(9	)
Net income		464			219			824			(845	)		662
Less: net income attributable to noncontrolling interests		—			—			198			—			198
Net income available to Genworth Financial, Inc.’s common stockholders	$	464		$	219		$	626		$	(845	)	$	464

The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	3,029		$	—		$	3,029
Net investment income		(3	)		1			2,386			(11	)		2,373
Net investment gains (losses)		—			(14	)		45			—			31
Policy fees and other income		—			(6	)		745			(1	)		738
Total revenues		(3	)		(19	)		6,205			(12	)		6,171
Benefits and expenses:
Benefits and other changes in policy reserves		—			—			3,715			—			3,715
Interest credited		—			—			523			—			523
Acquisition and operating expenses, net of deferrals		118			38			834			—			990
Amortization of deferred acquisition costs and intangibles		—			—			305			—			305
Interest expense		1			210			63			(12	)		262
Total benefits and expenses		119			248			5,440			(12	)		5,795
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries		(122	)		(267	)		765			—			376
Provision (benefit) for income taxes		(31	)		88			298			—			355
Equity in income (loss) of subsidiaries		(62	)		78			—			(16	)		—
Income (loss) from continuing operations		(153	)		(277	)		467			(16	)		21
Loss from discontinued operations, net of taxes		(2	)		(7	)		(16	)		—			(25	)
Net income (loss)		(155	)		(284	)		451			(16	)		(4	)
Less: net income attributable to noncontrolling interests		—			—			151			—			151
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	(155	)	$	(284	)	$	300		$	(16	)	$	(155	)

Condensed Consolidating Statement of Comprehensive Income

The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	107		$	34		$	228		$	(194	)	$	175
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		(72	)		(71	)		(89	)		143			(89	)
Derivatives qualifying as hedges		(12	)		(12	)		(12	)		24			(12	)
Foreign currency translation and other adjustments		24			12			80			(35	)		81
Total other comprehensive income (loss)		(60	)		(71	)		(21	)		132			(20	)
Total comprehensive income (loss)		47			(37	)		207			(62	)		155
Less: comprehensive income attributable to noncontrolling interests		—			—			108			—			108
Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders	$	47		$	(37	)	$	99		$	(62	)	$	47

The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net loss	$	(380	)	$	(420	)	$	(108	)	$	576		$	(332	)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		66			63			73			(130	)		72
Net unrealized gains (losses) on other-than-temporarily impaired securities		5			4			4			(8	)		5
Derivatives qualifying as hedges		54			54			57			(111	)		54
Foreign currency translation and other adjustments		(11	)		(3	)		—			13			(1	)
Total other comprehensive income (loss)		114			118			134			(236	)		130
Total comprehensive income (loss)		(266	)		(302	)		26			340			(202	)
Less: comprehensive income attributable to noncontrolling interests		—			—			64			—			64
Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders	$	(266	)	$	(302	)	$	(38	)	$	340		$	(266	)

The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	464		$	219		$	824		$	(845	)	$	662
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		(155	)		(172	)		(173	)		327			(173	)
Net unrealized gains (losses) on other-than-temporarily impaired securities		1			1			1			(2	)		1
Derivatives qualifying as hedges		(33	)		(33	)		(32	)		65			(33	)
Foreign currency translation and other adjustments		128			109			260			(236	)		261
Total other comprehensive income (loss)		(59	)		(95	)		56			154			56
Total comprehensive income		405			124			880			(691	)		718
Less: comprehensive income attributable to noncontrolling interests		—			—			313			—			313
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders	$	405		$	124		$	567		$	(691	)	$	405

The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(155	)	$	(284	)	$	451	$	(16	)	$	(4	)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired		1,600			1,555			1,625		(3,156	)		1,624
Net unrealized gains (losses) on other-than-temporarily impaired securities		6			5			6		(11	)		6
Derivatives qualifying as hedges		448			447			481		(928	)		448
Foreign currency translation and other adjustments		138			65			224		(204	)		223
Total other comprehensive income (loss)		2,192			2,072			2,336		(4,299	)		2,301
Total comprehensive income		2,037			1,788			2,787		(4,315	)		2,297
Less: comprehensive income attributable to noncontrolling interests		—			—			260		—			260
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders	$	2,037		$	1,788		$	2,527	$	(4,315	)	$	2,037

Condensed Consolidating Statement of Cash Flows

The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2017:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	464		$	219		$	824		$	(845	)	$	662
Less loss from discontinued operations, net of taxes		—			(4	)		13			—			9
Adjustments to reconcile net income to net cash from operating activities:
Equity in income from subsidiaries		(506	)		(339	)		—			845			—
Dividends from subsidiaries		—			119			(119	)		—			—
Amortization of fixed maturity securities discounts and premiums and limited partnerships		—			4			(111	)		—			(107	)
Net investment (gains) losses		—			12			(232	)		—			(220	)
Charges assessed to policyholders		—			—			(534	)		—			(534	)
Acquisition costs deferred		—			—			(67	)		—			(67	)
Amortization of deferred acquisition costs and intangibles		—			—			316			—			316
Deferred income taxes		6			(47	)		275			—			234
Trading securities, held-for-sale investments and derivative instruments		—			(46	)		762			—			716
Stock-based compensation expense		23			—			6			—			29
Change in certain assets and liabilities:
Accrued investment income and other assets		2			(2	)		(25	)		4			(21	)
Insurance reserves		—			—			1,202			—			1,202
Current tax liabilities		(6	)		(75	)		54			—			(27	)
Other liabilities, policy and contract claims and other policy-related balances		(29	)		34			(259	)		(6	)		(260	)
Net cash from operating activities		(46	)		(125	)		2,105			(2	)		1,932
Cash flows used by investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		—			—			3,396			—			3,396
Commercial mortgage loans		—			—			454			—			454
Restricted commercial mortgage loans related to securitization entities		—			—			18			—			18
Proceeds from sales of investments:
Fixed maturity and equity securities		—			—			3,269			—			3,269
Purchases and originations of investments:
Fixed maturity and equity securities		—			—			(6,709	)		—			(6,709	)
Commercial mortgage loans		—			—			(608	)		—			(608	)
Other invested assets, net		—			25			(548	)		2			(521	)
Policy loans, net		—			—			28			—			28
Intercompany notes receivable		—			(77	)		34			43			—
Capital contributions to subsidiaries		(7	)		—			7			—			—
Payments for business purchased, net of cash acquired		(7	)		—			2			—			(5	)
Net cash used by investing activities		(14	)		(52	)		(657	)		45			(678	)
Cash flows used by financing activities:
Deposits to universal life and investment contracts		—			—			902			—			902
Withdrawals from universal life and investment contracts		—			—			(2,003	)		—			(2,003	)
Repayment of borrowings related to securitization entities		—			—			(16	)		—			(16	)
Repurchase of subsidiary shares		—			—			(31	)		—			(31	)
Dividends paid to noncontrolling interests		—			—			(92	)		—			(92	)
Proceeds from intercompany notes payable		61			(35	)		17			(43	)		—
Other, net		(1	)		(32	)		3			—			(30	)
Net cash used by financing activities		60			(67	)		(1,220	)		(43	)		(1,270	)
Effect of exchange rate changes on cash and cash equivalents		—			—			68			—			68
Net change in cash and cash equivalents		—			(244	)		296			—			52
Cash and cash equivalents at beginning of period		—			998			1,786			—			2,784
Cash and cash equivalents at end of period	$	—		$	754		$	2,082		$	—		$	2,836

The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2016:

(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(155	)	$	(284	)	$	451		$	(16	)	$	(4	)
Less loss from discontinued operations, net of taxes		2			7			16			—			25
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in (income) loss from subsidiaries		62			(78	)		—			16			—
Dividends from subsidiaries		—			250			(250	)		—			—
(Gain) loss on sale of businesses		—			1			(27	)		—			(26	)
Amortization of fixed maturity securities discounts and premiums and limited partnerships		—			3			(115	)		—			(112	)
Net investment (gains) losses		—			14			(45	)		—			(31	)
Charges assessed to policyholders		—			—			(574	)		—			(574	)
Acquisition costs deferred		—			—			(124	)		—			(124	)
Amortization of deferred acquisition costs and intangibles		—			—			305			—			305
Deferred income taxes		8			304			(139	)		—			173
Trading securities, held-for-sale investments and derivative instruments		—			5			754			—			759
Stock-based compensation expense		18			—			7			—			25
Change in certain assets and liabilities:
Accrued investment income and other assets		(3	)		(4	)		(246	)		(5	)		(258	)
Insurance reserves		—			—			691			—			691
Current tax liabilities		11			(4	)		37			—			44
Other liabilities, policy and contract claims and other policy-related balances		(1	)		(22	)		928			—			905
Net cash from operating activities		(58	)		192			1,669			(5	)		1,798
Cash flows used by investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		—			150			2,496			—			2,646
Commercial mortgage loans		—			—			555			—			555
Restricted commercial mortgage loans related to securitization entities		—			—			27			—			27
Proceeds from sales of investments:
Fixed maturity and equity securities		—			—			4,064			—			4,064
Purchases and originations of investments:
Fixed maturity and equity securities		—			—			(8,758	)		—			(8,758	)
Commercial mortgage loans		—			—			(405	)		—			(405	)
Other invested assets, net		—			—			(143	)		5			(138	)
Policy loans, net		—			—			(80	)		—			(80	)
Intercompany notes receivable		—			(58	)		(18	)		76			—
Proceeds from sale of businesses, net of cash transferred		—			1			38			—			39
Net cash used by investing activities		—			93			(2,224	)		81			(2,050	)
Cash flows used by financing activities:
Deposits to universal life and investment contracts		—			—			1,028			—			1,028
Withdrawals from universal life and investment contracts		—			—			(1,463	)		—			(1,463	)
Redemption of non-recourse funding obligations		—			—			(1,620	)		—			(1,620	)
Repayment and repurchase of long-term debt		—			(326	)		(36	)		—			(362	)
Repayment of borrowings related to securitization entities		—			—			(37	)		—			(37	)
Return of capital to noncontrolling interests		—			—			(70	)		—			(70	)
Dividends paid to noncontrolling interests		—			—			(126	)		—			(126	)
Proceeds from intercompany notes payable		58			18			—			(76	)		—
Other, net		—			(36	)		(13	)		—			(49	)
Net cash used by financing activities		58			(344	)		(2,337	)		(76	)		(2,699	)
Effect of exchange rate changes on cash and cash equivalents		—			—			36			—			36
Net change in cash and cash equivalents		—			(59	)		(2,856	)		—			(2,915	)
Cash and cash equivalents at beginning of period		—			1,124			4,869			—			5,993
Cash and cash equivalents at end of period	$	—		$	1,065		$	2,013		$	—		$	3,078

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Formation of Genworth and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Billions		9 Months Ended
	Oct. 21, 2016 USD ($) $ / shares	Sep. 30, 2017 Segment	Apr. 01, 2013
Entity Information [Line Items]
Number of operating segments | Segment		5
Genworth Holdings
Entity Information [Line Items]
Percentage of subsidiary equity ownership			100.00%
China Oceanwide Holdings Group Co., Ltd. | Definitive Acquisition Agreement
Entity Information [Line Items]
Total transaction value to acquire all of our outstanding common stock | $	$ 2.7
Per share amount to acquire all of our outstanding common stock | $ / shares	$ 5.43

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Accounting Changes - Additional Information (Detail) - USD ($) $ in Millions		9 Months Ended
	Jan. 01, 2017	Sep. 30, 2017
Accounting Policies [Abstract]
Cumulative effect on retained earnings		$ 9
Accounting for Stock Compensation
Accounting Policies [Abstract]
Cumulative effect on retained earnings	$ 9
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Limited Partner
Accounting Policies [Abstract]
Cumulative effect on retained earnings		25
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Equity Securities
Accounting Policies [Abstract]
Cumulative effect on retained earnings		$ 45

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Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings (Loss) Per Share [Abstract]
Weighted-average shares used in basic earnings (loss) per share calculations		499.1	498.3	498.9	498.3
Stock options, restricted stock units and stock appreciation rights		2.5	0.0	2.3	0.0
Weighted-average shares used in diluted earnings (loss) per share calculations	[1]	501.6	498.3	501.2	498.3
Income (loss) from continuing operations:
Income (loss) from continuing operations		$ 184	$ (347)	$ 671	$ 21
Less: income from continuing operations attributable to noncontrolling interests		68	48	198	151
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders		$ 116	$ (395)	$ 473	$ (130)
Basic per share		$ 0.23	$ (0.79)	$ 0.95	$ (0.26)
Diluted per share		$ 0.23	$ (0.79)	$ 0.94	$ (0.26)
Income (loss) from discontinued operations:
Income (loss) from discontinued operations, net of taxes		$ (9)	$ 15	$ (9)	$ (25)
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests		0	0	0	0
Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.'s common stockholders		$ (9)	$ 15	$ (9)	$ (25)
Basic per share		$ (0.02)	$ 0.03	$ (0.02)	$ (0.05)
Diluted per share		$ (0.02)	$ 0.03	$ (0.02)	$ (0.05)
Net income (loss):
Income (loss) from continuing operations		$ 184	$ (347)	$ 671	$ 21
Income (loss) from discontinued operations, net of taxes		(9)	15	(9)	(25)
Net income (loss)		175	(332)	662	(4)
Less: net income attributable to noncontrolling interests		68	48	198	151
Net income (loss) available to Genworth Financial, Inc.'s common stockholders		$ 107	$ (380)	$ 464	$ (155)
Basic per share		$ 0.21	$ (0.76)	$ 0.93	$ (0.31)
Diluted per share		$ 0.21	$ (0.76)	$ 0.93	$ (0.31)

[1] Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the three months and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively.

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Earnings (Loss) Per Share (Parenthetical) (Detail) - shares shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Earnings Per Share Disclosure [Line Items]
Weighted-average diluted common shares outstanding, antidilutive securities (stock options, RSUs and SARs)	2.2	1.8
Weighted-average number of diluted shares if not in a loss position	500.5	500.1

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Net Investment Income (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Investment Income [Line Items]
Gross investment income before expenses and fees	$ 821	$ 825	$ 2,456	$ 2,435
Expenses and fees	(24)	(20)	(68)	(62)
Net investment income	797	805	2,388	2,373
Fixed maturity securities - taxable
Net Investment Income [Line Items]
Gross investment income before expenses and fees	640	655	1,930	1,930
Fixed maturity securities - non-taxable
Net Investment Income [Line Items]
Gross investment income before expenses and fees	3	3	9	9
Commercial mortgage loans
Net Investment Income [Line Items]
Gross investment income before expenses and fees	78	79	231	237
Restricted commercial mortgage loans related to securitization entities
Net Investment Income [Line Items]
Gross investment income before expenses and fees	3	3	7	8
Equity Securities
Net Investment Income [Line Items]
Gross investment income before expenses and fees	9	8	26	20
Other invested assets
Net Investment Income [Line Items]
Gross investment income before expenses and fees	39	34	106	105
Restricted other invested assets related to securitization entities
Net Investment Income [Line Items]
Gross investment income before expenses and fees	0	0	1	3
Policy Loans
Net Investment Income [Line Items]
Gross investment income before expenses and fees	39	38	120	107
Cash, cash equivalents and short-term investments
Net Investment Income [Line Items]
Gross investment income before expenses and fees	$ 10	$ 5	$ 26	$ 16

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Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investments [Abstract]
Realized gains		$ 40	$ 39	$ 177	$ 205
Realized losses		(10)	(24)	(55)	(75)
Net realized gains (losses) on available-for-sale securities		30	15	122	130
Total other-than-temporary impairments		(1)	(2)	(4)	(35)
Portion of other-than-temporary impairments included in other comprehensive income (loss)		0	0	0	0
Net other-than-temporary impairments		(1)	(2)	(4)	(35)
Trading securities		0	(4)	1	40
Commercial mortgage loans		1	(1)	3	1
Net gains (losses) related to securitization entities		1	2	5	(51)
Derivative instruments	[1]	54	10	93	(52)
Contingent consideration adjustment		0	0	0	(2)
Net investment gains (losses)		$ 85	$ 20	$ 220	$ 31

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

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Investments - Additional Information (Detail) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017 USD ($) Loan MortgageLoan	Sep. 30, 2016 USD ($) Loan	Sep. 30, 2017 USD ($) Loan MortgageLoan	Sep. 30, 2016 USD ($) Loan	Dec. 31, 2016 USD ($) Loan
Schedule of Investments [Line Items]
Aggregate fair value of securities sold	$ 286	$ 293	$ 1,390	$ 833
Aggregate fair value of securities sold, percentage of book value	97.00%	95.00%	96.00%	93.00%
Less than 12 months, average fair value percentage below cost for securities in a continuous loss position	2.00%		2.00%
12 months or more, Gross unrealized losses	$ 97		$ 97		$ 134
Investments subject to call provisions	12,426		$ 12,426
Percentage of investment portfolio by which no other industry group exceeded			10.00%
Percentage of stockholders' equity by which no single issuer of fixed maturity securities exceeded			10
Commercial mortgage loans outstanding more than 90 days, interest accruing	$ 0		$ 0		0
Number of commercial mortgage loans on nonaccrual status, past due less than 90 days | MortgageLoan	1		1
Commercial mortgage loans on nonaccrual status, past due less than 90 days					$ 0
Commercial mortgage loans modified or extended, number of loans | Loan	7		7		16
Commercial mortgage loans modified or extended, carrying value	$ 19		$ 19		$ 85
Number of loans modified to troubled debt restructuring | Loan					1
Troubled debt restructuring, loan					$ 1
Number of loans | Loan	0		0
Commercial mortgage loans, recorded investment	$ 6,281		$ 6,281		6,125
Investments in partnerships or similar entities generally considered VIEs	208		208		178
Fixed maturity securities
Schedule of Investments [Line Items]
12 months or more, Gross unrealized losses	88		88		116
Fixed maturity securities | Less Than 20 Percent Below Cost
Schedule of Investments [Line Items]
12 months or more, Gross unrealized losses	$ 88		$ 88		90
12 months or more, average fair value percentage below cost for securities in a continuous loss position	5.00%		5.00%
Stated percentage below cost of available-for-sale securities in a continuous loss position for twelve months or longer	20.00%		20.00%
Floating rate commercial mortgage loans
Schedule of Investments [Line Items]
Commercial mortgage loans, recorded investment	$ 0		$ 0		0
Investment grade
Schedule of Investments [Line Items]
12 months or more, Gross unrealized losses	$ 90		$ 90		$ 108
Investment grade | Less Than 20 Percent Below Cost
Schedule of Investments [Line Items]
Less than 12 months, stated percentage below cost of securities in unrealized loss position	20.00%		20.00%
Investment grade | Fixed maturity securities | Less Than 20 Percent Below Cost
Schedule of Investments [Line Items]
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position	92.00%		92.00%
Industrial
Schedule of Investments [Line Items]
Number of loans | Loan					1
Individually impaired commercial mortgage loans					$ 12
Impaired loans, unpaid principal balance					15
Individually impaired loans, charge-offs					3
Commercial mortgage loans, recorded investment	$ 1,608		$ 1,608		1,533
Retail
Schedule of Investments [Line Items]
Number of loans | Loan		1		1
Individually impaired commercial mortgage loans		$ 5		$ 5
Impaired loans, unpaid principal balance		$ 7		7
Individually impaired loans, charge-offs				2
Individually impaired loans, average recorded investment				$ 3
Commercial mortgage loans, recorded investment	$ 2,220		$ 2,220		$ 2,178
Finance and insurance | Fixed maturity securities
Schedule of Investments [Line Items]
Percent of investment portfolio, greater than 10%			23.00%
Utilities | Fixed maturity securities
Schedule of Investments [Line Items]
Percent of investment portfolio, greater than 10%			15.00%
Consumer-non-cyclical | Fixed maturity securities
Schedule of Investments [Line Items]
Percent of investment portfolio, greater than 10%			13.00%

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Credit Losses Recognized in Net Income (Loss) on Debt Securities (Detail) - Debt Securities - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Cumulative credit losses, beginning balance	$ 38	$ 62	$ 42	$ 64
Other-than-temporary impairments not previously recognized	0	0	0	1
Securities sold, paid down or disposed	(5)	(8)	(9)	(11)
Cumulative credit losses, ending balance	$ 33	$ 54	$ 33	$ 54

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Net Unrealized Gains and Losses on Available-for-Sale Investment Securities Reflected as Separate Component of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions		Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items]
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves		$ (3,134)		$ (1,611)
Income taxes, net		(619)		(711)
Net unrealized investment gains (losses) including noncontrolling interests		1,174		1,346
Less: net unrealized investment gains (losses) attributable to noncontrolling interests		66		84
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.		1,108	$ 1,180	1,262	$ 2,860	$ 2,789	$ 1,254
Net Unrealized Gains (Losses) On Investment Securities
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items]
Fixed maturity securities		4,878		3,656
Equity securities		49		12
Subtotal	[1]	$ 4,927		$ 3,668

[1] Excludes foreign exchange.

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Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investments [Abstract]
Net unrealized investment gains (losses), beginning of period	$ 1,180	$ 2,789	$ 1,262	$ 1,254
Unrealized gains (losses) on investment securities	(10)	228	1,377	3,584
Adjustment to deferred acquisition costs	(1)	(17)	(1,047)	(291)
Adjustment to present value of future profits	(3)	3	(36)	(26)
Adjustment to sales inducements	0	(6)	(11)	(46)
Adjustment to benefit reserves	(92)	(81)	(429)	(612)
Provision for income taxes	36	(41)	51	(917)
Change in unrealized gains (losses) on investment securities	(70)	86	(95)	1,692
Reclassification adjustments to net investment (gains) losses, net of taxes	(19)	(9)	(77)	(62)
Change in net unrealized investment gains (losses)	(89)	77	(172)	1,630
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests	(17)	6	(18)	24
Net unrealized investment gains (losses), end of period	$ 1,108	$ 2,860	$ 1,108	$ 2,860

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Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items]
Reclassification adjustments to net investment (gains) losses, taxes	$ 10	$ 4	$ 41	$ 33

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Amortized Cost or Cost, Gross Unrealized Gains (Losses) and Fair Value of Fixed Maturity and Equity Securities Classified as Available-for-Sale (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	$ 57,763	$ 57,014
Fair value, fixed maturity securities	62,552	60,572
Amortized cost or cost, equity securities	720	628
Fair value, equity securities	765	632
Amortized cost or cost, total	58,483	57,642
Fair value, total	63,317	61,204
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	4,893	5,439
Fair value, fixed maturity securities	5,670	6,036
Fixed maturity securities | State and Political Subdivisions
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	2,639	2,515
Fair value, fixed maturity securities	2,860	2,647
Fixed maturity securities | Non-U.S. government
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	2,143	2,024
Fair value, fixed maturity securities	2,226	2,107
Fixed maturity securities | U.S. corporate
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	25,930	24,943
Fair value, fixed maturity securities	28,482	26,828
Fixed maturity securities | U.S. corporate | Utilities
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	4,382	4,137
Fair value, fixed maturity securities	4,923	4,550
Fixed maturity securities | U.S. corporate | Energy
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	2,243	2,167
Fair value, fixed maturity securities	2,440	2,300
Fixed maturity securities | U.S. corporate | Finance and insurance
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	6,051	5,719
Fair value, fixed maturity securities	6,587	6,097
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	4,330	4,335
Fair value, fixed maturity securities	4,828	4,734
Fixed maturity securities | U.S. corporate | Technology and communications
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	2,558	2,473
Fair value, fixed maturity securities	2,740	2,598
Fixed maturity securities | U.S. corporate | Industrial
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	1,247	1,161
Fair value, fixed maturity securities	1,346	1,223
Fixed maturity securities | U.S. corporate | Capital goods
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	2,067	2,043
Fair value, fixed maturity securities	2,321	2,258
Fixed maturity securities | U.S. corporate | Consumer-cyclical
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	1,506	1,455
Fair value, fixed maturity securities	1,611	1,530
Fixed maturity securities | U.S. corporate | Transportation
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	1,188	1,121
Fair value, fixed maturity securities	1,306	1,190
Fixed maturity securities | U.S. corporate | Other
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	358	332
Fair value, fixed maturity securities	380	348
Fixed maturity securities | Non-U.S. corporate
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	11,810	11,717
Fair value, fixed maturity securities	12,623	12,295
Fixed maturity securities | Non-U.S. corporate | Utilities
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	1,022	940
Fair value, fixed maturity securities	1,062	969
Fixed maturity securities | Non-U.S. corporate | Energy
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	1,330	1,234
Fair value, fixed maturity securities	1,463	1,331
Fixed maturity securities | Non-U.S. corporate | Finance and insurance
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	2,524	2,413
Fair value, fixed maturity securities	2,696	2,538
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	692	711
Fair value, fixed maturity securities	716	714
Fixed maturity securities | Non-U.S. corporate | Technology and communications
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	945	953
Fair value, fixed maturity securities	1,014	987
Fixed maturity securities | Non-U.S. corporate | Industrial
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	979	928
Fair value, fixed maturity securities	1,058	958
Fixed maturity securities | Non-U.S. corporate | Capital goods
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	556	518
Fair value, fixed maturity securities	587	535
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	518	434
Fair value, fixed maturity securities	527	442
Fixed maturity securities | Non-U.S. corporate | Transportation
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	650	619
Fair value, fixed maturity securities	718	677
Fixed maturity securities | Non-U.S. corporate | Other
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	2,594	2,967
Fair value, fixed maturity securities	2,782	3,144
Fixed maturity securities | Residential mortgage-backed
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	3,950	4,122
Fair value, fixed maturity securities	4,209	4,379
Fixed maturity securities | Commercial mortgage-backed
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	3,346	3,084
Fair value, fixed maturity securities	3,414	3,129
Fixed maturity securities | Other asset-backed
Schedule of Investments [Line Items]
Amortized cost or cost, fixed maturity securities	3,052	3,170
Fair value, fixed maturity securities	3,068	3,151
Not other-than-temporary impairments
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	5,001	4,095
Gross unrealized losses, fixed maturity securities	(229)	(551)
Gross unrealized gains, equity securities	59	31
Gross unrealized losses, equity securities	(14)	(27)
Gross unrealized gains	5,060	4,126
Gross unrealized losses	(243)	(578)
Not other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	784	647
Gross unrealized losses, fixed maturity securities	(7)	(50)
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	247	182
Gross unrealized losses, fixed maturity securities	(26)	(50)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	107	101
Gross unrealized losses, fixed maturity securities	(24)	(18)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	2,635	2,124
Gross unrealized losses, fixed maturity securities	(83)	(239)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	556	454
Gross unrealized losses, fixed maturity securities	(15)	(41)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	207	157
Gross unrealized losses, fixed maturity securities	(10)	(24)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	547	424
Gross unrealized losses, fixed maturity securities	(11)	(46)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	508	433
Gross unrealized losses, fixed maturity securities	(10)	(34)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	193	157
Gross unrealized losses, fixed maturity securities	(11)	(32)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	102	76
Gross unrealized losses, fixed maturity securities	(3)	(14)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	263	228
Gross unrealized losses, fixed maturity securities	(9)	(13)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	111	92
Gross unrealized losses, fixed maturity securities	(6)	(17)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	124	86
Gross unrealized losses, fixed maturity securities	(6)	(17)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	24	17
Gross unrealized losses, fixed maturity securities	(2)	(1)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	848	669
Gross unrealized losses, fixed maturity securities	(35)	(91)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	45	40
Gross unrealized losses, fixed maturity securities	(5)	(11)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	140	109
Gross unrealized losses, fixed maturity securities	(7)	(12)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	177	134
Gross unrealized losses, fixed maturity securities	(5)	(9)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	27	17
Gross unrealized losses, fixed maturity securities	(3)	(14)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	71	44
Gross unrealized losses, fixed maturity securities	(2)	(10)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	81	39
Gross unrealized losses, fixed maturity securities	(2)	(9)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	33	21
Gross unrealized losses, fixed maturity securities	(2)	(4)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	10	10
Gross unrealized losses, fixed maturity securities	(1)	(2)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	71	65
Gross unrealized losses, fixed maturity securities	(3)	(7)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	193	190
Gross unrealized losses, fixed maturity securities	(5)	(13)
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	255	259
Gross unrealized losses, fixed maturity securities	(10)	(12)
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	105	98
Gross unrealized losses, fixed maturity securities	(39)	(56)
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	20	15
Gross unrealized losses, fixed maturity securities	(5)	(35)
Other-than-temporary impairments
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	17	14
Gross unrealized losses, fixed maturity securities	0	0
Gross unrealized gains, equity securities	0	0
Gross unrealized losses, equity securities	0	0
Gross unrealized gains	17	14
Gross unrealized losses	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. government
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	0	0
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	14	10
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	2	3
Gross unrealized losses, fixed maturity securities	0	0
Other-than-temporary impairments | Fixed maturity securities | Other asset-backed
Schedule of Investments [Line Items]
Gross unrealized gains, fixed maturity securities	1	1
Gross unrealized losses, fixed maturity securities	$ 0	$ 0

XML

Gross Unrealized Losses and Fair Value of Investment Securities (Detail) $ in Millions	Sep. 30, 2017 USD ($) Securities	Dec. 31, 2016 USD ($) Securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 7,626	$ 12,697
Less than 12 months, Gross unrealized losses	$ (146)	$ (444)
Less than 12 months, Number of securities in a continuous loss position | Securities	1,131	1,872
12 months or more, Fair value	$ 1,830	$ 1,737
12 months or more, Gross unrealized losses	$ (97)	$ (134)
12 months or more, Number of securities in a continuous loss position | Securities	370	322
Fair value	$ 9,456	$ 14,434
Gross unrealized losses	$ (243)	$ (578)
Number of securities in a continuous loss position | Securities	1,501	2,194
Investment grade
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 7,437	$ 12,339
Less than 12 months, Gross unrealized losses	$ (139)	$ (432)
Less than 12 months, Number of securities in a continuous loss position | Securities	984	1,657
12 months or more, Fair value	$ 1,656	$ 1,354
12 months or more, Gross unrealized losses	$ (90)	$ (108)
12 months or more, Number of securities in a continuous loss position | Securities	287	250
Fair value	$ 9,093	$ 13,693
Gross unrealized losses	$ (229)	$ (540)
Number of securities in a continuous loss position | Securities	1,271	1,907
Below investment grade
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 189	$ 358
Less than 12 months, Gross unrealized losses	$ (7)	$ (12)
Less than 12 months, Number of securities in a continuous loss position | Securities	147	215
12 months or more, Fair value	$ 174	$ 383
12 months or more, Gross unrealized losses	$ (7)	$ (26)
12 months or more, Number of securities in a continuous loss position | Securities	83	72
Fair value	$ 363	$ 741
Gross unrealized losses	$ (14)	$ (38)
Number of securities in a continuous loss position | Securities	230	287
Fixed maturity securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 7,544	$ 12,578
Less than 12 months, Gross unrealized losses	$ (141)	$ (435)
Less than 12 months, Number of securities in a continuous loss position | Securities	989	1,690
12 months or more, Fair value	$ 1,719	$ 1,623
12 months or more, Gross unrealized losses	$ (88)	$ (116)
12 months or more, Number of securities in a continuous loss position | Securities	281	275
Fair value	$ 9,263	$ 14,201
Gross unrealized losses	$ (229)	$ (551)
Number of securities in a continuous loss position | Securities	1,270	1,965
Fixed maturity securities | Less Than 20 Percent Below Cost
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 7,544	$ 12,578
Less than 12 months, Gross unrealized losses	$ (141)	$ (435)
Less than 12 months, Number of securities in a continuous loss position | Securities	989	1,690
12 months or more, Fair value	$ 1,719	$ 1,543
12 months or more, Gross unrealized losses	$ (88)	$ (90)
12 months or more, Number of securities in a continuous loss position | Securities	281	267
Fair value	$ 9,263	$ 14,121
Gross unrealized losses	$ (229)	$ (525)
Number of securities in a continuous loss position | Securities	1,270	1,957
Fixed maturity securities | 20 To 50 percent below cost
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value		$ 0
Less than 12 months, Gross unrealized losses		$ 0
Less than 12 months, Number of securities in a continuous loss position | Securities		0
12 months or more, Fair value		$ 80
12 months or more, Gross unrealized losses		$ (26)
12 months or more, Number of securities in a continuous loss position | Securities		8
Fair value		$ 80
Gross unrealized losses		$ (26)
Number of securities in a continuous loss position | Securities		8
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 283	$ 1,074
Less than 12 months, Gross unrealized losses	$ (6)	$ (50)
Less than 12 months, Number of securities in a continuous loss position | Securities	22	37
12 months or more, Fair value	$ 31	$ 0
12 months or more, Gross unrealized losses	$ (1)	$ 0
12 months or more, Number of securities in a continuous loss position | Securities	4	0
Fair value	$ 314	$ 1,074
Gross unrealized losses	$ (7)	$ (50)
Number of securities in a continuous loss position | Securities	26	37
Fixed maturity securities | State and Political Subdivisions
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 213	$ 644
Less than 12 months, Gross unrealized losses	$ (5)	$ (32)
Less than 12 months, Number of securities in a continuous loss position | Securities	45	109
12 months or more, Fair value	$ 230	$ 142
12 months or more, Gross unrealized losses	$ (21)	$ (18)
12 months or more, Number of securities in a continuous loss position | Securities	23	12
Fair value	$ 443	$ 786
Gross unrealized losses	$ (26)	$ (50)
Number of securities in a continuous loss position | Securities	68	121
Fixed maturity securities | Non-U.S. government
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 922	$ 497
Less than 12 months, Gross unrealized losses	$ (23)	$ (18)
Less than 12 months, Number of securities in a continuous loss position | Securities	36	51
12 months or more, Fair value	$ 24	$ 0
12 months or more, Gross unrealized losses	$ (1)	$ 0
12 months or more, Number of securities in a continuous loss position | Securities	14	0
Fair value	$ 946	$ 497
Gross unrealized losses	$ (24)	$ (18)
Number of securities in a continuous loss position | Securities	50	51
Fixed maturity securities | U.S. corporate
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 2,335	$ 5,221
Less than 12 months, Gross unrealized losses	$ (47)	$ (190)
Less than 12 months, Number of securities in a continuous loss position | Securities	333	711
12 months or more, Fair value	$ 766	$ 662
12 months or more, Gross unrealized losses	$ (36)	$ (49)
12 months or more, Number of securities in a continuous loss position | Securities	106	94
Fair value	$ 3,101	$ 5,883
Gross unrealized losses	$ (83)	$ (239)
Number of securities in a continuous loss position | Securities	439	805
Fixed maturity securities | Non-U.S. corporate
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 1,562	$ 2,257
Less than 12 months, Gross unrealized losses	$ (22)	$ (66)
Less than 12 months, Number of securities in a continuous loss position | Securities	222	330
12 months or more, Fair value	$ 261	$ 408
12 months or more, Gross unrealized losses	$ (13)	$ (25)
12 months or more, Number of securities in a continuous loss position | Securities	36	57
Fair value	$ 1,823	$ 2,665
Gross unrealized losses	$ (35)	$ (91)
Number of securities in a continuous loss position | Securities	258	387
Fixed maturity securities | Residential mortgage-backed
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 656	$ 725
Less than 12 months, Gross unrealized losses	$ (9)	$ (11)
Less than 12 months, Number of securities in a continuous loss position | Securities	80	100
12 months or more, Fair value	$ 33	$ 58
12 months or more, Gross unrealized losses	$ (1)	$ (1)
12 months or more, Number of securities in a continuous loss position | Securities	28	35
Fair value	$ 689	$ 783
Gross unrealized losses	$ (10)	$ (12)
Number of securities in a continuous loss position | Securities	108	135
Fixed maturity securities | Commercial mortgage-backed
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 837	$ 1,091
Less than 12 months, Gross unrealized losses	$ (25)	$ (55)
Less than 12 months, Number of securities in a continuous loss position | Securities	120	168
12 months or more, Fair value	$ 201	$ 25
12 months or more, Gross unrealized losses	$ (14)	$ (1)
12 months or more, Number of securities in a continuous loss position | Securities	30	9
Fair value	$ 1,038	$ 1,116
Gross unrealized losses	$ (39)	$ (56)
Number of securities in a continuous loss position | Securities	150	177
Fixed maturity securities | Other asset-backed
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 736	$ 1,069
Less than 12 months, Gross unrealized losses	$ (4)	$ (13)
Less than 12 months, Number of securities in a continuous loss position | Securities	131	184
12 months or more, Fair value	$ 173	$ 328
12 months or more, Gross unrealized losses	$ (1)	$ (22)
12 months or more, Number of securities in a continuous loss position | Securities	40	68
Fair value	$ 909	$ 1,397
Gross unrealized losses	$ (5)	$ (35)
Number of securities in a continuous loss position | Securities	171	252
Equity Securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 82	$ 119
Less than 12 months, Gross unrealized losses	$ (5)	$ (9)
Less than 12 months, Number of securities in a continuous loss position | Securities	142	182
12 months or more, Fair value	$ 111	$ 114
12 months or more, Gross unrealized losses	$ (9)	$ (18)
12 months or more, Number of securities in a continuous loss position | Securities	89	47
Fair value	$ 193	$ 233
Gross unrealized losses	$ (14)	$ (27)
Number of securities in a continuous loss position | Securities	231	229
Equity Securities | Less Than 20 Percent Below Cost
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 79	$ 118
Less than 12 months, Gross unrealized losses	$ (4)	$ (8)
Less than 12 months, Number of securities in a continuous loss position | Securities	139	167
12 months or more, Fair value	$ 111	$ 101
12 months or more, Gross unrealized losses	$ (9)	$ (14)
12 months or more, Number of securities in a continuous loss position | Securities	89	38
Fair value	$ 190	$ 219
Gross unrealized losses	$ (13)	$ (22)
Number of securities in a continuous loss position | Securities	228	205
Equity Securities | 20 To 50 percent below cost
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 months, Fair value	$ 3	$ 1
Less than 12 months, Gross unrealized losses	$ (1)	$ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities	3	15
12 months or more, Fair value	$ 0	$ 13
12 months or more, Gross unrealized losses	$ 0	$ (4)
12 months or more, Number of securities in a continuous loss position | Securities	0	9
Fair value	$ 3	$ 14
Gross unrealized losses	$ (1)	$ (5)
Number of securities in a continuous loss position | Securities	3	24

XML

Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions	Sep. 30, 2017 USD ($) Securities	Dec. 31, 2016 USD ($) Securities
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 7,626	$ 12,697
Less than 12 months, Gross unrealized losses	$ (146)	$ (444)
Less than 12 months, Number of securities in a continuous loss position | Securities	1,131	1,872
12 months or more, Fair value	$ 1,830	$ 1,737
12 months or more, Gross unrealized losses	$ (97)	$ (134)
12 months or more, Number of securities in a continuous loss position | Securities	370	322
Fair value	$ 9,456	$ 14,434
Gross unrealized losses	$ (243)	$ (578)
Number of securities in a continuous loss position | Securities	1,501	2,194
Fixed maturity securities
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 7,544	$ 12,578
Less than 12 months, Gross unrealized losses	$ (141)	$ (435)
Less than 12 months, Number of securities in a continuous loss position | Securities	989	1,690
12 months or more, Fair value	$ 1,719	$ 1,623
12 months or more, Gross unrealized losses	$ (88)	$ (116)
12 months or more, Number of securities in a continuous loss position | Securities	281	275
Fair value	$ 9,263	$ 14,201
Gross unrealized losses	$ (229)	$ (551)
Number of securities in a continuous loss position | Securities	1,270	1,965
Fixed maturity securities | U.S. corporate
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 2,335	$ 5,221
Less than 12 months, Gross unrealized losses	$ (47)	$ (190)
Less than 12 months, Number of securities in a continuous loss position | Securities	333	711
12 months or more, Fair value	$ 766	$ 662
12 months or more, Gross unrealized losses	$ (36)	$ (49)
12 months or more, Number of securities in a continuous loss position | Securities	106	94
Fair value	$ 3,101	$ 5,883
Gross unrealized losses	$ (83)	$ (239)
Number of securities in a continuous loss position | Securities	439	805
Fixed maturity securities | U.S. corporate | Utilities
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 468	$ 855
Less than 12 months, Gross unrealized losses	$ (10)	$ (39)
Less than 12 months, Number of securities in a continuous loss position | Securities	69	130
12 months or more, Fair value	$ 104	$ 21
12 months or more, Gross unrealized losses	$ (5)	$ (2)
12 months or more, Number of securities in a continuous loss position | Securities	17	5
Fair value	$ 572	$ 876
Gross unrealized losses	$ (15)	$ (41)
Number of securities in a continuous loss position | Securities	86	135
Fixed maturity securities | U.S. corporate | Energy
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 123	$ 190
Less than 12 months, Gross unrealized losses	$ (1)	$ (5)
Less than 12 months, Number of securities in a continuous loss position | Securities	22	30
12 months or more, Fair value	$ 146	$ 276
12 months or more, Gross unrealized losses	$ (9)	$ (19)
12 months or more, Number of securities in a continuous loss position | Securities	16	38
Fair value	$ 269	$ 466
Gross unrealized losses	$ (10)	$ (24)
Number of securities in a continuous loss position | Securities	38	68
Fixed maturity securities | U.S. corporate | Finance and insurance
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 542	$ 1,438
Less than 12 months, Gross unrealized losses	$ (7)	$ (38)
Less than 12 months, Number of securities in a continuous loss position | Securities	75	177
12 months or more, Fair value	$ 154	$ 113
12 months or more, Gross unrealized losses	$ (4)	$ (8)
12 months or more, Number of securities in a continuous loss position | Securities	21	15
Fair value	$ 696	$ 1,551
Gross unrealized losses	$ (11)	$ (46)
Number of securities in a continuous loss position | Securities	96	192
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 325	$ 921
Less than 12 months, Gross unrealized losses	$ (7)	$ (34)
Less than 12 months, Number of securities in a continuous loss position | Securities	50	117
12 months or more, Fair value	$ 84	$ 0
12 months or more, Gross unrealized losses	$ (3)	$ 0
12 months or more, Number of securities in a continuous loss position | Securities	12	0
Fair value	$ 409	$ 921
Gross unrealized losses	$ (10)	$ (34)
Number of securities in a continuous loss position | Securities	62	117
Fixed maturity securities | U.S. corporate | Technology and communications
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 208	$ 507
Less than 12 months, Gross unrealized losses	$ (4)	$ (22)
Less than 12 months, Number of securities in a continuous loss position | Securities	30	70
12 months or more, Fair value	$ 127	$ 126
12 months or more, Gross unrealized losses	$ (7)	$ (10)
12 months or more, Number of securities in a continuous loss position | Securities	19	17
Fair value	$ 335	$ 633
Gross unrealized losses	$ (11)	$ (32)
Number of securities in a continuous loss position | Securities	49	87
Fixed maturity securities | U.S. corporate | Industrial
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 55	$ 226
Less than 12 months, Gross unrealized losses	$ (1)	$ (7)
Less than 12 months, Number of securities in a continuous loss position | Securities	12	38
12 months or more, Fair value	$ 56	$ 77
12 months or more, Gross unrealized losses	$ (2)	$ (7)
12 months or more, Number of securities in a continuous loss position | Securities	8	10
Fair value	$ 111	$ 303
Gross unrealized losses	$ (3)	$ (14)
Number of securities in a continuous loss position | Securities	20	48
Fixed maturity securities | U.S. corporate | Capital goods
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 274	$ 322
Less than 12 months, Gross unrealized losses	$ (8)	$ (12)
Less than 12 months, Number of securities in a continuous loss position | Securities	31	50
12 months or more, Fair value	$ 8	$ 6
12 months or more, Gross unrealized losses	$ (1)	$ (1)
12 months or more, Number of securities in a continuous loss position | Securities	2	1
Fair value	$ 282	$ 328
Gross unrealized losses	$ (9)	$ (13)
Number of securities in a continuous loss position | Securities	33	51
Fixed maturity securities | U.S. corporate | Consumer-cyclical
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 127	$ 431
Less than 12 months, Gross unrealized losses	$ (2)	$ (16)
Less than 12 months, Number of securities in a continuous loss position | Securities	18	56
12 months or more, Fair value	$ 70	$ 26
12 months or more, Gross unrealized losses	$ (4)	$ (1)
12 months or more, Number of securities in a continuous loss position | Securities	9	6
Fair value	$ 197	$ 457
Gross unrealized losses	$ (6)	$ (17)
Number of securities in a continuous loss position | Securities	27	62
Fixed maturity securities | U.S. corporate | Transportation
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 190	$ 302
Less than 12 months, Gross unrealized losses	$ (5)	$ (16)
Less than 12 months, Number of securities in a continuous loss position | Securities	24	41
12 months or more, Fair value	$ 17	$ 17
12 months or more, Gross unrealized losses	$ (1)	$ (1)
12 months or more, Number of securities in a continuous loss position | Securities	2	2
Fair value	$ 207	$ 319
Gross unrealized losses	$ (6)	$ (17)
Number of securities in a continuous loss position | Securities	26	43
Fixed maturity securities | U.S. corporate | Other
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 23	$ 29
Less than 12 months, Gross unrealized losses	$ (2)	$ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities	2	2
12 months or more, Fair value	$ 0	$ 0
12 months or more, Gross unrealized losses	$ 0	$ 0
12 months or more, Number of securities in a continuous loss position | Securities	0	0
Fair value	$ 23	$ 29
Gross unrealized losses	$ (2)	$ (1)
Number of securities in a continuous loss position | Securities	2	2
Fixed maturity securities | Non-U.S. corporate
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 1,562	$ 2,257
Less than 12 months, Gross unrealized losses	$ (22)	$ (66)
Less than 12 months, Number of securities in a continuous loss position | Securities	222	330
12 months or more, Fair value	$ 261	$ 408
12 months or more, Gross unrealized losses	$ (13)	$ (25)
12 months or more, Number of securities in a continuous loss position | Securities	36	57
Fair value	$ 1,823	$ 2,665
Gross unrealized losses	$ (35)	$ (91)
Number of securities in a continuous loss position | Securities	258	387
Fixed maturity securities | Non-U.S. corporate | Utilities
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 227	$ 240
Less than 12 months, Gross unrealized losses	$ (4)	$ (10)
Less than 12 months, Number of securities in a continuous loss position | Securities	31	32
12 months or more, Fair value	$ 19	$ 14
12 months or more, Gross unrealized losses	$ (1)	$ (1)
12 months or more, Number of securities in a continuous loss position | Securities	2	1
Fair value	$ 246	$ 254
Gross unrealized losses	$ (5)	$ (11)
Number of securities in a continuous loss position | Securities	33	33
Fixed maturity securities | Non-U.S. corporate | Energy
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 142	$ 105
Less than 12 months, Gross unrealized losses	$ (3)	$ (3)
Less than 12 months, Number of securities in a continuous loss position | Securities	21	18
12 months or more, Fair value	$ 69	$ 91
12 months or more, Gross unrealized losses	$ (4)	$ (9)
12 months or more, Number of securities in a continuous loss position | Securities	11	16
Fair value	$ 211	$ 196
Gross unrealized losses	$ (7)	$ (12)
Number of securities in a continuous loss position | Securities	32	34
Fixed maturity securities | Non-U.S. corporate | Finance and insurance
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 324	$ 474
Less than 12 months, Gross unrealized losses	$ (3)	$ (8)
Less than 12 months, Number of securities in a continuous loss position | Securities	49	79
12 months or more, Fair value	$ 50	$ 71
12 months or more, Gross unrealized losses	$ (2)	$ (1)
12 months or more, Number of securities in a continuous loss position | Securities	9	16
Fair value	$ 374	$ 545
Gross unrealized losses	$ (5)	$ (9)
Number of securities in a continuous loss position | Securities	58	95
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 131	$ 308
Less than 12 months, Gross unrealized losses	$ (2)	$ (14)
Less than 12 months, Number of securities in a continuous loss position | Securities	16	30
12 months or more, Fair value	$ 34	$ 0
12 months or more, Gross unrealized losses	$ (1)	$ 0
12 months or more, Number of securities in a continuous loss position | Securities	4	0
Fair value	$ 165	$ 308
Gross unrealized losses	$ (3)	$ (14)
Number of securities in a continuous loss position | Securities	20	30
Fixed maturity securities | Non-U.S. corporate | Technology and communications
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 80	$ 232
Less than 12 months, Gross unrealized losses	$ (1)	$ (9)
Less than 12 months, Number of securities in a continuous loss position | Securities	17	34
12 months or more, Fair value	$ 12	$ 28
12 months or more, Gross unrealized losses	$ (1)	$ (1)
12 months or more, Number of securities in a continuous loss position | Securities	2	2
Fair value	$ 92	$ 260
Gross unrealized losses	$ (2)	$ (10)
Number of securities in a continuous loss position | Securities	19	36
Fixed maturity securities | Non-U.S. corporate | Industrial
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 67	$ 165
Less than 12 months, Gross unrealized losses	$ (1)	$ (5)
Less than 12 months, Number of securities in a continuous loss position | Securities	10	21
12 months or more, Fair value	$ 11	$ 91
12 months or more, Gross unrealized losses	$ (1)	$ (4)
12 months or more, Number of securities in a continuous loss position | Securities	2	10
Fair value	$ 78	$ 256
Gross unrealized losses	$ (2)	$ (9)
Number of securities in a continuous loss position | Securities	12	31
Fixed maturity securities | Non-U.S. corporate | Capital goods
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 34	$ 104
Less than 12 months, Gross unrealized losses	$ (1)	$ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities	6	14
12 months or more, Fair value	$ 34	$ 28
12 months or more, Gross unrealized losses	$ (1)	$ (2)
12 months or more, Number of securities in a continuous loss position | Securities	3	2
Fair value	$ 68	$ 132
Gross unrealized losses	$ (2)	$ (4)
Number of securities in a continuous loss position | Securities	9	16
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 101	$ 90
Less than 12 months, Gross unrealized losses	$ (1)	$ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities	15	17
12 months or more, Fair value	$ 0	$ 0
12 months or more, Gross unrealized losses	$ 0	$ 0
12 months or more, Number of securities in a continuous loss position | Securities	0	0
Fair value	$ 101	$ 90
Gross unrealized losses	$ (1)	$ (2)
Number of securities in a continuous loss position | Securities	15	17
Fixed maturity securities | Non-U.S. corporate | Transportation
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 61	$ 106
Less than 12 months, Gross unrealized losses	$ (1)	$ (5)
Less than 12 months, Number of securities in a continuous loss position | Securities	13	16
12 months or more, Fair value	$ 32	$ 25
12 months or more, Gross unrealized losses	$ (2)	$ (2)
12 months or more, Number of securities in a continuous loss position | Securities	3	2
Fair value	$ 93	$ 131
Gross unrealized losses	$ (3)	$ (7)
Number of securities in a continuous loss position | Securities	16	18
Fixed maturity securities | Non-U.S. corporate | Other
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 395	$ 433
Less than 12 months, Gross unrealized losses	$ (5)	$ (8)
Less than 12 months, Number of securities in a continuous loss position | Securities	44	69
12 months or more, Fair value	$ 0	$ 60
12 months or more, Gross unrealized losses	$ 0	$ (5)
12 months or more, Number of securities in a continuous loss position | Securities	0	8
Fair value	$ 395	$ 493
Gross unrealized losses	$ (5)	$ (13)
Number of securities in a continuous loss position | Securities	44	77
Fixed maturity securities | Corporate Debt Securities
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, Fair value	$ 3,897	$ 7,478
Less than 12 months, Gross unrealized losses	$ (69)	$ (256)
Less than 12 months, Number of securities in a continuous loss position | Securities	555	1,041
12 months or more, Fair value	$ 1,027	$ 1,070
12 months or more, Gross unrealized losses	$ (49)	$ (74)
12 months or more, Number of securities in a continuous loss position | Securities	142	151
Fair value	$ 4,924	$ 8,548
Gross unrealized losses	$ (118)	$ (330)
Number of securities in a continuous loss position | Securities	697	1,192

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Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Amortized cost or cost
Due one year or less	$ 1,943
Due after one year through five years	10,901
Due after five years through ten years	12,363
Due after ten years	22,208
Subtotal	47,415
Amortized cost or cost, fixed maturity securities	57,763	$ 57,014
Fair value
Due one year or less	1,966
Due after one year through five years	11,333
Due after five years through ten years	12,933
Due after ten years	25,629
Subtotal	51,861
Fair value, fixed maturity securities	62,552	$ 60,572
Residential mortgage-backed
Amortized cost or cost
Fixed maturity securities	3,950
Fair value
Fixed maturity securities	4,209
Commercial mortgage-backed
Amortized cost or cost
Fixed maturity securities	3,346
Fair value
Fixed maturity securities	3,414
Other asset-backed
Amortized cost or cost
Fixed maturity securities	3,052
Fair value
Fixed maturity securities	$ 3,068

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Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 6,281	$ 6,125
Unamortized balance of loan origination fees and costs	$ (3)	$ (2)
% of total	100.00%	100.00%
Allowance for losses	$ (10)	$ (12)
Total	6,268	6,111
Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	6,281	6,125
Unamortized balance of loan origination fees and costs	$ (3)	$ (2)
% of total	100.00%	100.00%
Allowance for losses	$ (10)	$ (12)
Total	6,268	6,111
Pacific | Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,600	$ 1,567
% of total	26.00%	27.00%
South Atlantic | Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,620	$ 1,546
% of total	26.00%	25.00%
Middle Atlantic | Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 904	$ 915
% of total	14.00%	15.00%
Mountain | Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 556	$ 554
% of total	9.00%	9.00%
West North Central | Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 441	$ 435
% of total	7.00%	7.00%
East North Central | Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 386	$ 388
% of total	6.00%	6.00%
West South Central | Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 327	$ 311
% of total	5.00%	5.00%
New England | Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 237	$ 206
% of total	4.00%	3.00%
East South Central | Commercial Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 210	$ 203
% of total	3.00%	3.00%
Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,220	$ 2,178
% of total	35.00%	36.00%
Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,608	$ 1,533
% of total	26.00%	25.00%
Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,465	$ 1,430
% of total	23.00%	23.00%
Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 489	$ 455
% of total	8.00%	7.00%
Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 222	$ 245
% of total	4.00%	4.00%
Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 277	$ 284
% of total	4.00%	5.00%

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Aging of Past Due Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 6,281	$ 6,125
% of total	100.00%	100.00%
Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,220	$ 2,178
% of total	35.00%	36.00%
Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,608	$ 1,533
% of total	26.00%	25.00%
Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,465	$ 1,430
% of total	23.00%	23.00%
Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 489	$ 455
% of total	8.00%	7.00%
Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 222	$ 245
% of total	4.00%	4.00%
Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 277	$ 284
% of total	4.00%	5.00%
31-60 days past due
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 6	$ 1
% of total	0.00%	0.00%
31-60 days past due | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 0	$ 0
31-60 days past due | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	1
31-60 days past due | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	6	0
31-60 days past due | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
31-60 days past due | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
31-60 days past due | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
61-90 days past due
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 0	$ 0
% of total	0.00%	0.00%
61-90 days past due | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 0	$ 0
61-90 days past due | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
61-90 days past due | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
61-90 days past due | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
61-90 days past due | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
61-90 days past due | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
Greater than 90 days past due
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 0	$ 12
% of total	0.00%	0.00%
Greater than 90 days past due | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 0	$ 0
Greater than 90 days past due | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	12
Greater than 90 days past due | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
Greater than 90 days past due | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
Greater than 90 days past due | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
Greater than 90 days past due | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
Total past due
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 6	$ 13
% of total	0.00%	0.00%
Total past due | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 0	$ 0
Total past due | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	13
Total past due | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	6	0
Total past due | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
Total past due | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
Total past due | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	0
Current
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 6,275	$ 6,112
% of total	100.00%	100.00%
Current | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,220	$ 2,178
Current | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	1,608	1,520
Current | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	1,459	1,430
Current | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	489	455
Current | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	222	245
Current | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 277	$ 284

XML

Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			$ 12
Ending balance	$ 10		10
Ending balance	6,281		6,281		$ 6,125
Allowance for Credit Losses
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	10	$ 13	12	$ 15
Charge-offs	0	0	0	(4)
Recoveries	0	0	0	0
Provision	0	0	(2)	2
Ending balance	10	13	10	13
Ending allowance for individually impaired loans	0	0	0	0
Ending allowance for loans not individually impaired that were evaluated collectively for impairment	10	13	10	13
Commercial Mortgage Loans Recorded Investment
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance	6,281	6,032	6,281	6,032
Ending balance of individually impaired loans	0	17	0	17
Ending balance of loans not individually impaired that were evaluated collectively for impairment	$ 6,281	$ 6,015	$ 6,281	$ 6,015

XML

Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2017 USD ($)		Dec. 31, 2016 USD ($)
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 6,281		$ 6,125
% of total	100.00%		100.00%
Weighted-average debt service coverage ratio	2.10		1.87
Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,220		$ 2,178
% of total	35.00%		36.00%
Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,608		$ 1,533
% of total	26.00%		25.00%
Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,465		$ 1,430
% of total	23.00%		23.00%
Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 489		$ 455
% of total	8.00%		7.00%
Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 222		$ 245
% of total	4.00%		4.00%
Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 277		$ 284
% of total	4.00%		5.00%
Greater than 100%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2	[1]	$ 7	[2]
% of total	0.00%	[1]	0.00%	[2]
Weighted-average debt service coverage ratio	1.04	[1]	(0.07)	[2]
Greater than 100% | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 0	[1]	$ 0	[2]
Greater than 100% | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	[1]	0	[2]
Greater than 100% | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	2	[1]	7	[2]
Greater than 100% | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	[1]	0	[2]
Greater than 100% | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	[1]	0	[2]
Greater than 100% | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	[1]	0	[2]
0% - 50%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,668		$ 2,094
% of total	43.00%		34.00%
Weighted-average debt service coverage ratio	2.65		2.20
0% - 50% | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 933		$ 743
0% - 50% | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	747		605
0% - 50% | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	583		431
0% - 50% | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	236		188
0% - 50% | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	101		67
0% - 50% | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	68		60
51% - 60%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,441		$ 1,457
% of total	23.00%		24.00%
Weighted-average debt service coverage ratio	1.85		1.88
51% - 60% | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 499		$ 511
51% - 60% | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	356		430
51% - 60% | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	393		310
51% - 60% | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	105		89
51% - 60% | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	59		87
51% - 60% | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	29		30
61% - 75%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,149		$ 2,511
% of total	34.00%		41.00%
Weighted-average debt service coverage ratio	1.60		1.61
61% - 75% | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 788		$ 913
61% - 75% | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	503		484
61% - 75% | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	473		656
61% - 75% | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	143		173
61% - 75% | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	62		91
61% - 75% | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	180		194
76% - 100%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 21		$ 56
% of total	0.00%		1.00%
Weighted-average debt service coverage ratio	0.63		0.80
76% - 100% | Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 0		$ 11
76% - 100% | Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	2		14
76% - 100% | Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	14		26
76% - 100% | Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	5		5
76% - 100% | Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0		0
76% - 100% | Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 0		$ 0

[1] Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 103%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

[2] Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

XML

Loan-to-Value of Commercial Mortgage Loans by Property Type (Parenthetical) (Detail) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2017		Dec. 31, 2016
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 6,281		$ 6,125
Greater than 100%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	2	[1]	7	[2]
Greater than 100% | Loans in Good Standing
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2		$ 7
Weighted-average loan-to-value	103.00%		105.00%

[1] Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 103%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

[2] Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

XML

Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 6,281	$ 6,125
% of total	100.00%	100.00%
Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 6,281	$ 6,125
% of total	100.00%	100.00%
Weighted-average loan-to-value	52.00%	55.00%
Retail
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,220	$ 2,178
% of total	35.00%	36.00%
Retail | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,220	$ 2,178
Industrial
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,608	$ 1,533
% of total	26.00%	25.00%
Industrial | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,608	$ 1,533
Office
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,465	$ 1,430
% of total	23.00%	23.00%
Office | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 1,465	$ 1,430
Apartments
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 489	$ 455
% of total	8.00%	7.00%
Apartments | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 489	$ 455
Mixed Use
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 222	$ 245
% of total	4.00%	4.00%
Mixed Use | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 222	$ 245
Other
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 277	$ 284
% of total	4.00%	5.00%
Other | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 277	$ 284
Less than 1.00 | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 142	$ 251
% of total	2.00%	4.00%
Weighted-average loan-to-value	57.00%	61.00%
Less than 1.00 | Retail | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 43	$ 67
Less than 1.00 | Industrial | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	24	71
Less than 1.00 | Office | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	72	91
Less than 1.00 | Apartments | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	0	19
Less than 1.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	2	2
Less than 1.00 | Other | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	1	1
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 545	$ 613
% of total	9.00%	10.00%
Weighted-average loan-to-value	60.00%	60.00%
1.00 - 1.25 | Retail | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 242	$ 204
1.00 - 1.25 | Industrial | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	63	113
1.00 - 1.25 | Office | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	67	117
1.00 - 1.25 | Apartments | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	20	22
1.00 - 1.25 | Mixed Use | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	4	9
1.00 - 1.25 | Other | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	149	148
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 745	$ 956
% of total	12.00%	16.00%
Weighted-average loan-to-value	58.00%	59.00%
1.26 - 1.50 | Retail | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 298	$ 425
1.26 - 1.50 | Industrial | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	180	236
1.26 - 1.50 | Office | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	151	172
1.26 - 1.50 | Apartments | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	75	44
1.26 - 1.50 | Mixed Use | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	26	19
1.26 - 1.50 | Other | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	15	60
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,550	$ 2,507
% of total	40.00%	41.00%
Weighted-average loan-to-value	57.00%	58.00%
1.51 - 2.00 | Retail | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 999	$ 899
1.51 - 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	679	599
1.51 - 2.00 | Office | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	521	609
1.51 - 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	193	217
1.51 - 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	86	128
1.51 - 2.00 | Other | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	72	55
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 2,299	$ 1,798
% of total	37.00%	29.00%
Weighted-average loan-to-value	41.00%	45.00%
Greater than 2.00 | Retail | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 638	$ 583
Greater than 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	662	514
Greater than 2.00 | Office | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	654	441
Greater than 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	201	153
Greater than 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	104	87
Greater than 2.00 | Other | Fixed Rate Commercial Mortgage Loans
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans, recorded investment	$ 40	$ 20

XML

Schedule of Positions in Derivative Instruments (Detail) - USD ($) $ in Millions		Sep. 30, 2017		Dec. 31, 2016
Derivative [Line Items]
Derivative assets, fair value		$ 275	[1]	$ 724
Derivative liabilities, fair value		729	[1]	1,041
Policyholder account balances
Derivative [Line Items]
Derivative liabilities, fair value		665		658
Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		64		383
Other invested assets
Derivative [Line Items]
Derivative assets, fair value		261		708
Interest rate swaps | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		39		349
Interest rate swaps | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		70		596
Foreign currency swaps | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value				5
Foreign currency swaps | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		12		4
Credit default swaps related to securitization entities | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value				1
Equity index options | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		81		72
Equity return swaps | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		2		1
Equity return swaps | Other invested assets
Derivative [Line Items]
Derivative assets, fair value				1
Other foreign currency contracts | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		23		27
Other foreign currency contracts | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		98		35
GMWB embedded derivatives | Policyholder account balances
Derivative [Line Items]
Derivative liabilities, fair value	[2]	257		303
GMWB embedded derivatives | Reinsurance recoverable
Derivative [Line Items]
Derivative assets, fair value	[3]	14		16
Fixed index annuity embedded derivatives | Policyholder account balances
Derivative [Line Items]
Derivative liabilities, fair value		394		344
Indexed universal life embedded derivatives | Policyholder account balances
Derivative [Line Items]
Derivative liabilities, fair value		14		11
Designated As Hedging Instrument
Derivative [Line Items]
Derivative assets, fair value		72	[1]	241
Derivative liabilities, fair value		39	[1]	203
Designated As Hedging Instrument | Cash Flow Hedges
Derivative [Line Items]
Derivative assets, fair value		72	[1]	241
Derivative liabilities, fair value		39	[1]	203
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		39	[1]	203
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		70	[1]	237
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		0	[1]	0
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		2	[1]	4
Derivatives not designated as hedges
Derivative [Line Items]
Derivative assets, fair value		203	[1]	483
Derivative liabilities, fair value		690	[1]	838
Derivatives not designated as hedges | Interest rate swaps | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		0	[1]	146
Derivatives not designated as hedges | Interest rate swaps | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		0	[1]	359
Derivatives not designated as hedges | Foreign currency swaps | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		0	[1]	5
Derivatives not designated as hedges | Foreign currency swaps | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		10	[1]	0
Derivatives not designated as hedges | Credit default swaps related to securitization entities | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		0	[1]	1
Derivatives not designated as hedges | Credit default swaps related to securitization entities | Restricted other invested assets
Derivative [Line Items]
Derivative assets, fair value		0	[1]	0
Derivatives not designated as hedges | Equity index options | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		0	[1]	0
Derivatives not designated as hedges | Equity index options | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		81	[1]	72
Derivatives not designated as hedges | Financial futures | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		0	[1]	0
Derivatives not designated as hedges | Financial futures | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		0	[1]	0
Derivatives not designated as hedges | Equity return swaps | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		2	[1]	1
Derivatives not designated as hedges | Equity return swaps | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		0	[1]	1
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities
Derivative [Line Items]
Derivative liabilities, fair value		23	[1]	27
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets
Derivative [Line Items]
Derivative assets, fair value		98	[1]	35
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances
Derivative [Line Items]
Derivative liabilities, fair value	[4]	257	[1]	303
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable
Derivative [Line Items]
Derivative assets, fair value	[5]	14	[1]	16
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances
Derivative [Line Items]
Derivative liabilities, fair value	[6]	394	[1]	344
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Other assets
Derivative [Line Items]
Derivative assets, fair value		0	[1]	0
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Policyholder account balances
Derivative [Line Items]
Derivative liabilities, fair value	[7]	14	[1]	11
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Reinsurance recoverable
Derivative [Line Items]
Derivative assets, fair value		$ 0	[1]	$ 0

[1] In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017.

[2] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

[3] Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

[4] Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

[5] Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits ("GMWB") liabilities.

[6] Represents the embedded derivatives associated with our fixed index annuity liabilities.

[7] Represents the embedded derivatives associated with our indexed universal life liabilities.

XML

Schedule of Positions in Derivative Instruments (Parenthetical) (Detail) $ in Millions	3 Months Ended
	Sep. 30, 2017 USD ($)
Derivative [Line Items]
Reduction in derivative assets	$ (509)
Reduction in derivative liabilities	$ (274)

XML

Activity Associated with Derivative Instruments (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($) Policies
Derivative [Line Items]
Notional amount, beginning balance	$ 23,912
Additions	8,328
Maturities/ terminations	(7,329)
Notional amount, ending balance	24,911
Designated As Hedging Instrument
Derivative [Line Items]
Notional amount, beginning balance	11,592
Additions	0
Maturities/ terminations	(306)
Notional amount, ending balance	11,286
Designated As Hedging Instrument | Cash Flow Hedges
Derivative [Line Items]
Notional amount, beginning balance	11,592
Additions	0
Maturities/ terminations	(306)
Notional amount, ending balance	11,286
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps
Derivative [Line Items]
Notional amount, beginning balance	11,570
Additions	0
Maturities/ terminations	(306)
Notional amount, ending balance	11,264
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps
Derivative [Line Items]
Notional amount, beginning balance	22
Additions	0
Maturities/ terminations	0
Notional amount, ending balance	22
Derivatives not designated as hedges
Derivative [Line Items]
Notional amount, beginning balance	12,320
Additions	8,328
Maturities/ terminations	(7,023)
Notional amount, ending balance	13,625
Derivatives not designated as hedges | Interest rate swaps
Derivative [Line Items]
Notional amount, beginning balance	4,679
Additions	0
Maturities/ terminations	0
Notional amount, ending balance	4,679
Derivatives not designated as hedges | Foreign currency swaps
Derivative [Line Items]
Notional amount, beginning balance	201
Additions	95
Maturities/ terminations	(14)
Notional amount, ending balance	282
Derivatives not designated as hedges | Credit default swaps
Derivative [Line Items]
Notional amount, beginning balance	39
Additions	0
Maturities/ terminations	0
Notional amount, ending balance	39
Derivatives not designated as hedges | Credit default swaps related to securitization entities
Derivative [Line Items]
Notional amount, beginning balance	312
Additions	0
Maturities/ terminations	(200)
Notional amount, ending balance	112
Derivatives not designated as hedges | Equity index options
Derivative [Line Items]
Notional amount, beginning balance	2,396
Additions	1,584
Maturities/ terminations	(1,484)
Notional amount, ending balance	2,496
Derivatives not designated as hedges | Financial futures
Derivative [Line Items]
Notional amount, beginning balance	1,398
Additions	4,300
Maturities/ terminations	(4,376)
Notional amount, ending balance	1,322
Derivatives not designated as hedges | Equity return swaps
Derivative [Line Items]
Notional amount, beginning balance	165
Additions	186
Maturities/ terminations	(258)
Notional amount, ending balance	93
Derivatives not designated as hedges | Other foreign currency contracts
Derivative [Line Items]
Notional amount, beginning balance	3,130
Additions	2,163
Maturities/ terminations	(691)
Notional amount, ending balance	$ 4,602
Derivatives not designated as hedges | GMWB embedded derivatives
Derivative [Line Items]
Notional amount, beginning balance | Policies	33,238
Additions | Policies	0
Maturities/ terminations | Policies	(2,127)
Notional amount, ending balance | Policies	31,111
Derivatives not designated as hedges | Fixed index annuity embedded derivatives
Derivative [Line Items]
Notional amount, beginning balance | Policies	17,549
Additions | Policies	0
Maturities/ terminations | Policies	(367)
Notional amount, ending balance | Policies	17,182
Derivatives not designated as hedges | Indexed universal life embedded derivatives
Derivative [Line Items]
Notional amount, beginning balance | Policies	1,074
Additions | Policies	1
Maturities/ terminations | Policies	(66)
Notional amount, ending balance | Policies	1,009

XML

Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in OCI		$ 16	$ 112	$ 46	$ 780
Gain (loss) reclassified into net income (loss) from OCI		34	27	97	90
Gain (loss) recognized in net income (loss)	[1]	0	2	0	13
Interest Rate Swaps Hedging Assets | Net investment gains (losses)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in OCI				0	0
Gain (loss) reclassified into net income (loss) from OCI				2	1
Gain (loss) recognized in net income (loss)	[1]	0	2	0	13
Interest Rate Swaps Hedging Assets | Net Investment Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in OCI		17	115	50	839
Gain (loss) reclassified into net income (loss) from OCI		34	27	95	80
Interest Rate Swaps Hedging Liabilities | Net investment gains (losses)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in net income (loss)	[1]		0	0	0
Interest Rate Swaps Hedging Liabilities | Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in OCI			(2)	(2)	(52)
Gain (loss) reclassified into net income (loss) from OCI			0	0	0
Foreign currency swaps | Net investment gains (losses)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in net income (loss)	[1]	0	0	0	0
Foreign currency swaps | Net Investment Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in OCI		(1)	(1)	(2)	(2)
Gain (loss) reclassified into net income (loss) from OCI		$ 0	$ 0	$ 0	0
Inflation indexed swaps | Net investment gains (losses)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in OCI					0
Gain (loss) reclassified into net income (loss) from OCI					7
Gain (loss) recognized in net income (loss)	[1]				0
Inflation indexed swaps | Net Investment Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in OCI					(5)
Gain (loss) reclassified into net income (loss) from OCI					$ 2

[1] Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

XML

Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments [Abstract]
Derivatives qualifying as effective accounting hedges, beginning of period	$ 2,064	$ 2,439	$ 2,085	$ 2,045
Current period increases (decreases) in fair value, net of deferred taxes	10	72	29	507
Reclassification to net (income), net of deferred taxes	(22)	(18)	(62)	(59)
Derivatives qualifying as effective accounting hedges, end of period	$ 2,052	$ 2,493	$ 2,052	$ 2,493

XML

Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Current period increases (decreases) in fair value, deferred taxes	$ (6)	$ (40)	$ (17)	$ (273)
Reclassification to net (income), deferred taxes	$ 12	$ 9	$ 35	$ 31

XML

Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax		$ 2,052	$ 2,064	$ 2,085	$ 2,493	$ 2,439	$ 2,045
Year by which all forecasted transactions associated with qualifying cash flow hedges are expected to occur		2057
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to net income (loss) in the next 12 months, net of tax		$ 95
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring		2
Derivative assets | Subject to enforceable master netting arrangement
Derivative [Line Items]
Amount to claim from counterparties if the downgrade provisions had been triggered	[1]	82		86
Derivative liabilities | Subject to enforceable master netting arrangement
Derivative [Line Items]
Amounts required for disbursement to counterparties if the downgrade provisions had been triggered	[2]	$ 0		$ 2

[1] Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively.

[2] Included $2 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2017 and December 31, 2016, respectively.

XML

Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for Effects of Derivatives not Designated as Hedges (Detail) - Derivatives not designated as hedges - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	$ 56	$ 10	$ 97	$ (67)
Interest rate swaps | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	1	(1)	2	7
Interest rate swaps related to securitization entities | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss			0	(10)
Credit default swaps related to securitization entities | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	2	2	6	16
Equity index options | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	16	9	42	5
Financial futures | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	(17)	(35)	(25)	(9)
Equity return swaps | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	(5)	(9)	(19)	(2)
Other foreign currency contracts | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	40	(2)	66	(6)
Foreign currency swaps | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	8	(1)	13	6
GMWB embedded derivatives | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	30	60	64	(58)
Fixed index annuity embedded derivatives | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	(21)	(16)	(57)	(22)
Indexed universal life embedded derivatives | Net investment gains (losses)
Derivative [Line Items]
Pre-tax gain (loss) recognized in net loss	$ 2	$ 3	$ 5	$ 6

XML

Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Millions		Sep. 30, 2017		Dec. 31, 2016
Derivative [Line Items]
Gross amounts recognized, derivatives assets		$ 275	[1]	$ 724
Gross amounts recognized, derivatives liabilities		729	[1]	1,041
Subject to enforceable master netting arrangement
Derivative [Line Items]
Collateral received		(164)		(467)
Collateral pledged		301		557
Over collateralization, derivatives assets		(251)		(343)
Gross amounts recognized, net derivatives		196		337
Gross amounts offset in the balance sheet, net derivatives		0		0
Net amounts presented in the balance sheet, net derivatives		196		337
Gross amounts not offset in the balance sheet, financial instruments, net derivatives	[2]	0		0
Net amount		82		84
Subject to enforceable master netting arrangement | Derivative assets
Derivative [Line Items]
Gross amounts recognized, derivatives assets	[3]	262		724
Gross amounts offset in the balance sheet, derivatives assets	[3]	0		0
Net amounts presented in the balance sheet, derivatives assets	[3]	262		724
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets	[2],[3]	(24)		(172)
Collateral received	[3]	(164)		(467)
Collateral pledged	[3]	0		0
Over collateralization, derivatives assets	[3]	8		1
Net amount, derivatives assets	[3]	82		86
Subject to enforceable master netting arrangement | Derivative liabilities
Derivative [Line Items]
Gross amounts recognized, derivatives liabilities	[4]	66		387
Gross amounts offset in the balance sheet, derivatives liabilities	[4]	0		0
Net amounts presented in the balance sheet, derivatives liabilities	[4]	66		387
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities	[2],[4]	(24)		(172)
Collateral pledged	[4]	(301)		(557)
Over collateralization, derivatives liabilities	[4]	259		344
Net amount, derivatives liabilities	[4]	$ 0		$ 2

[1] In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017.

[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.

[3] Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively.

[4] Included $2 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2017 and December 31, 2016, respectively.

XML

Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Subject to enforceable master netting arrangement - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Derivative liabilities
Derivative [Line Items]
Net amounts presented in the balance sheet, accruals on derivative liabilities	[1]	$ 66	$ 387
Derivative assets
Derivative [Line Items]
Net amounts presented in the balance sheet, accruals on derivative assets	[2]	262	724
Other assets | Derivative assets
Derivative [Line Items]
Net amounts presented in the balance sheet, accruals on derivative assets		1	16
Other liabilities | Derivative liabilities
Derivative [Line Items]
Net amounts presented in the balance sheet, accruals on derivative liabilities		$ 2	$ 5

[1] Included $2 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2017 and December 31, 2016, respectively.

[2] Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively.

XML

Derivative Instruments Schedule of Credit Default Swaps where we Sell Protection on Single Name Reference Entities and Fair Values (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional value	$ 24,911	$ 23,912
Credit default swaps | Single Name Reference Entities
Derivative [Line Items]
Notional value	39	39
Assets	0	0
Liabilities	0	0
Credit default swaps | Single Name Reference Entities | Investment grade | Matures in less than one year
Derivative [Line Items]
Notional value	39	0
Assets	0	0
Liabilities	0	0
Credit default swaps | Single Name Reference Entities | Investment grade | Matures After One Year Through Five Years
Derivative [Line Items]
Notional value	0	39
Assets	0	0
Liabilities	$ 0	$ 0

XML

Schedule of Credit Default Swaps where we Sell Protection on Credit Default Swap Index Tranches and Fair Values (Detail) - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional value		$ 24,911	$ 23,912
Credit default swaps | Securitization Entities | Index Tranches
Derivative [Line Items]
Notional value		112	312
Assets		0	0
Liabilities		0	1
Credit default swaps | Securitization Entities | Index Tranches | Portion Backing Third-Party Borrowings Maturing 2017
Derivative [Line Items]
Notional value	[1]	12	12
Assets	[1]	0	0
Liabilities	[1]	0	0
Credit default swaps | Securitization Entities | Index Tranches | Portion Backing Interest Maturing 2017
Derivative [Line Items]
Notional value	[2]	100	300
Assets	[2]	0	0
Liabilities	[2]	0	1
Total Credit Default Swaps on Index Tranches
Derivative [Line Items]
Notional value		112	312
Assets		0	0
Liabilities		$ 0	$ 1

[1] Original notional value was $39 million.

[2] Original notional value was $300 million.

XML

Schedule of Credit Default Swaps where we Sell Protection on Credit Default Swap Index Tranches and Fair Values (Parenthetical) (Detail) - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional value		$ 24,911	$ 23,912
Securitization Entities | Credit default swaps | Index Tranches
Derivative [Line Items]
Notional value		112	312
Securitization Entities | Credit default swaps | Index Tranches | Portion Backing Third-Party Borrowings Maturing 2017
Derivative [Line Items]
Notional value	[1]	12	12
Securitization Entities | Credit default swaps | Index Tranches | Portion Backing Interest Maturing 2017
Derivative [Line Items]
Notional value	[2]	100	$ 300
Securitization Entities | Credit default swaps | Original Amount | Index Tranches | Portion Backing Third-Party Borrowings Maturing 2017
Derivative [Line Items]
Notional value		39
Securitization Entities | Credit default swaps | Original Amount | Index Tranches | Portion Backing Interest Maturing 2017
Derivative [Line Items]
Notional value		$ 300

[1] Original notional value was $39 million.

[2] Original notional value was $300 million.

XML

Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loans		$ 6,268	$ 6,111
Restricted commercial mortgage loans		111	129
Other invested assets		1,590	2,071
Long-term borrowings		4,224	4,180
Non-recourse funding obligations		310	310
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loans		0	0
Restricted commercial mortgage loans		0	0
Other invested assets		0	0
Long-term borrowings		0	0
Non-recourse funding obligations		0	0
Borrowings related to securitization entities		0	0
Investment contracts		0	0
Commitments to fund limited partnerships		0	0
Ordinary course of business lending commitments		0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loans		0	0
Restricted commercial mortgage loans		0	0
Other invested assets		0	352
Long-term borrowings		3,583	3,440
Non-recourse funding obligations		0	0
Borrowings related to securitization entities		48	65
Investment contracts		5	5
Commitments to fund limited partnerships		0	0
Ordinary course of business lending commitments		0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loans		6,550	6,247
Restricted commercial mortgage loans		122	141
Other invested assets		243	121
Long-term borrowings		159	142
Non-recourse funding obligations		195	186
Borrowings related to securitization entities		0	0
Investment contracts		15,700	16,988
Commitments to fund limited partnerships		0	0
Ordinary course of business lending commitments		0	0
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loans		6,268	6,111
Restricted commercial mortgage loans		111	129
Other invested assets		217	459
Long-term borrowings		4,224	4,180
Non-recourse funding obligations		310	310
Borrowings related to securitization entities		47	62
Investment contracts		15,163	16,437
Commitments to fund limited partnerships		0	0
Ordinary course of business lending commitments		0	0
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loans		6,550	6,247
Restricted commercial mortgage loans		122	141
Other invested assets		243	473
Long-term borrowings		3,742	3,582
Non-recourse funding obligations		195	186
Borrowings related to securitization entities		48	65
Investment contracts		15,705	16,993
Commitments to fund limited partnerships		0	0
Ordinary course of business lending commitments		0	0
Notional amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loans	[1]	0	0
Restricted commercial mortgage loans	[1]	0	0
Other invested assets	[1]	0	0
Long-term borrowings	[1]	0	0
Non-recourse funding obligations	[1]	0	0
Borrowings related to securitization entities	[1]	0	0
Investment contracts	[1]	0	0
Commitments to fund limited partnerships		319	201
Ordinary course of business lending commitments		$ 61	$ 73

[1] These financial instruments do not have notional amounts.

XML

Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	$ 62,552	$ 60,572
GMWB non-performance risk impact	$ 65	$ 73
Period end valuation	0	0
Fixed maturity securities | Non-U.S. government
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	$ 2,226	$ 2,107
Fixed maturity securities | U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	28,482	26,828
Fixed maturity securities | State and Political Subdivisions
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	2,860	2,647
Fixed maturity securities | Non-U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	12,623	12,295
Level 2
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	58,403	56,271
Level 2 | Fixed maturity securities | Non-U.S. government
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	2,226	2,107
Level 2 | Fixed maturity securities | U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	26,155	24,341
Level 2 | Fixed maturity securities | State and Political Subdivisions
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	2,823	2,610
Level 2 | Fixed maturity securities | Non-U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	11,172	10,762
Level 2 | Fixed maturity securities | Internal models | Non-U.S. government
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	16
Level 2 | Fixed maturity securities | Internal models | U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	865
Level 2 | Fixed maturity securities | Internal models | State and Political Subdivisions
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	7
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	$ 461
Level 2 | Fixed maturity securities | Third-Party Pricing Services
Fair Value of Financial Instruments [Line Items]
Percentage of available for sale debt securities	91.00%
Level 2 | Fixed maturity securities | Third-Party Pricing Services | Non-U.S. government
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	$ 2,210
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	25,290
Level 2 | Fixed maturity securities | Third-Party Pricing Services | State and Political Subdivisions
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	2,816
Level 2 | Fixed maturity securities | Third-Party Pricing Services | Non-U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	10,711
Level 3
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	4,149	4,301
Level 3 | Fixed maturity securities | Non-U.S. government
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	0	0
Level 3 | Fixed maturity securities | U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	2,327	2,487
Level 3 | Fixed maturity securities | State and Political Subdivisions
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	37	37
Level 3 | Fixed maturity securities | Non-U.S. corporate
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	1,451	$ 1,533
Level 3 | Fixed maturity securities | Internal models
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	3,521
Level 3 | Fixed maturity securities | Broker Quotes
Fair Value of Financial Instruments [Line Items]
Available-for-sale debt securities	$ 628

XML

Summary of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2 (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	$ 62,552	$ 60,572
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	5,670	6,036
Fixed maturity securities | State and Political Subdivisions
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	2,860	2,647
Fixed maturity securities | Non-U.S. government
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	2,226	2,107
Fixed maturity securities | U.S. corporate
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	28,482	26,828
Fixed maturity securities | Non-U.S. corporate
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	12,623	12,295
Fixed maturity securities | Residential mortgage-backed
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	4,209	4,379
Fixed maturity securities | Commercial mortgage-backed
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	3,414	3,129
Fixed maturity securities | Other asset-backed
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	3,068	3,151
Level 2
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	58,403	56,271
Level 2 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	5,669	6,034
Level 2 | Fixed maturity securities | State and Political Subdivisions
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	2,823	2,610
Level 2 | Fixed maturity securities | Non-U.S. government
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	2,226	2,107
Level 2 | Fixed maturity securities | U.S. corporate
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	26,155	24,341
Level 2 | Fixed maturity securities | Non-U.S. corporate
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	11,172	10,762
Level 2 | Fixed maturity securities | Residential mortgage-backed
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	4,123	4,336
Level 2 | Fixed maturity securities | Commercial mortgage-backed
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	3,392	3,075
Level 2 | Fixed maturity securities | Other asset-backed
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	2,843	$ 3,006
Level 2 | Third-Party Pricing Services | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	$ 5,669
Primary methodologies	Price quotes from trading desk, broker feeds
Significant inputs	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
Level 2 | Third-Party Pricing Services | Fixed maturity securities | State and Political Subdivisions
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	$ 2,816
Primary methodologies	Multi-dimensional attribute-based modeling systems, third-party pricing vendors
Significant inputs	Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Non-U.S. government
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	$ 2,210
Primary methodologies	Matrix pricing, spread priced to benchmark curves, price quotes from market makers
Significant inputs	Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources
Level 2 | Third-Party Pricing Services | Fixed maturity securities | U.S. corporate
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	$ 25,290
Primary methodologies	Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-basedmodels
Significant inputs	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
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Non-U.S. corporate
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	$ 10,711
Primary methodologies	Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers
Significant inputs	Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Residential mortgage-backed
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	$ 4,123
Primary methodologies	OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced
Significant inputs	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
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Commercial mortgage-backed
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	$ 3,392
Primary methodologies	Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model
Significant inputs	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 swaps curves, TRACE reports
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Other asset-backed
Fair value measurements Significant unobservable inputs [Line Items]
Available-for-sale debt securities	$ 2,843
Primary methodologies	Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models
Significant inputs	Spreads to daily updated swaps 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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Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions		Sep. 30, 2017		Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		$ 62,552		$ 60,572
Restricted other invested assets related to securitization entities				312
Available-for-sale equity securities		765		632
Derivative assets, fair value		275	[1]	724
Total other invested assets		1,590		2,071
Separate account assets		7,264		7,299
Total assets		71,880		70,332
Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities				259
Derivative assets, fair value		261		708
Securities lending collateral		237		534
Short-term investments		787
Interest rate swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		70		596
Foreign currency swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		12		4
Equity index options | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		81		72
Equity return swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value				1
Other foreign currency contracts | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		98		35
GMWB embedded derivatives | Reinsurance recoverable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value	[2]	14		16
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total other invested assets		243		473
Fair value | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total other invested assets		1,285		1,501
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		5,670		6,036
Fixed maturity securities | State and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,860		2,647
Fixed maturity securities | Non-U.S. government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,226		2,107
Fixed maturity securities | U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		28,482		26,828
Fixed maturity securities | U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		4,923		4,550
Fixed maturity securities | U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,440		2,300
Fixed maturity securities | U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		6,587		6,097
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		4,828		4,734
Fixed maturity securities | U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,740		2,598
Fixed maturity securities | U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,346		1,223
Fixed maturity securities | U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,321		2,258
Fixed maturity securities | U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,611		1,530
Fixed maturity securities | U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,306		1,190
Fixed maturity securities | U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		380		348
Fixed maturity securities | Non-U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		12,623		12,295
Fixed maturity securities | Non-U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,062		969
Fixed maturity securities | Non-U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,463		1,331
Fixed maturity securities | Non-U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,696		2,538
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		716		714
Fixed maturity securities | Non-U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,014		987
Fixed maturity securities | Non-U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,058		958
Fixed maturity securities | Non-U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		587		535
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		527		442
Fixed maturity securities | Non-U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		718		677
Fixed maturity securities | Non-U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,782		3,144
Fixed maturity securities | Residential mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		4,209		4,379
Fixed maturity securities | Commercial mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		3,414		3,129
Fixed maturity securities | Other asset-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		3,068		3,151
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Restricted other invested assets related to securitization entities				0
Available-for-sale equity securities		644		551
Total other invested assets		0		0
Separate account assets		7,264		7,299
Total assets		7,908		7,850
Level 1 | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities				0
Derivative assets, fair value		0		0
Securities lending collateral		0		0
Short-term investments		0
Level 1 | Interest rate swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		0		0
Level 1 | Foreign currency swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		0		0
Level 1 | Equity index options | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		0		0
Level 1 | Equity return swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value				0
Level 1 | Other foreign currency contracts | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		0		0
Level 1 | GMWB embedded derivatives | Reinsurance recoverable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value	[2]	0		0
Level 1 | Fair value | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total other invested assets		0		0
Level 1 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | State and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Residential mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Commercial mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 1 | Fixed maturity securities | Other asset-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		58,403		56,271
Restricted other invested assets related to securitization entities				181
Available-for-sale equity securities		77		34
Total other invested assets		0		352
Separate account assets		0		0
Total assets		59,684		57,912
Level 2 | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities				259
Derivative assets, fair value		180		633
Securities lending collateral		237		534
Short-term investments		787
Level 2 | Interest rate swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		70		596
Level 2 | Foreign currency swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		12		4
Level 2 | Equity index options | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		0		0
Level 2 | Equity return swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value				1
Level 2 | Other foreign currency contracts | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		98		32
Level 2 | GMWB embedded derivatives | Reinsurance recoverable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value	[2]	0		0
Level 2 | Fair value | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total other invested assets		1,204		1,426
Level 2 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		5,669		6,034
Level 2 | Fixed maturity securities | State and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,823		2,610
Level 2 | Fixed maturity securities | Non-U.S. government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,226		2,107
Level 2 | Fixed maturity securities | U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		26,155		24,341
Level 2 | Fixed maturity securities | U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		4,261		3,974
Level 2 | Fixed maturity securities | U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,282		2,090
Level 2 | Fixed maturity securities | U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		5,917		5,311
Level 2 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		4,701		4,613
Level 2 | Fixed maturity securities | U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,688		2,544
Level 2 | Fixed maturity securities | U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,299		1,175
Level 2 | Fixed maturity securities | U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,203		2,106
Level 2 | Fixed maturity securities | U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,349		1,272
Level 2 | Fixed maturity securities | U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,245		1,051
Level 2 | Fixed maturity securities | U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		210		205
Level 2 | Fixed maturity securities | Non-U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		11,172		10,762
Level 2 | Fixed maturity securities | Non-U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		703		583
Level 2 | Fixed maturity securities | Non-U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,286		1,125
Level 2 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,527		2,356
Level 2 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		587		575
Level 2 | Fixed maturity securities | Non-U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		985		920
Level 2 | Fixed maturity securities | Non-U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		919		849
Level 2 | Fixed maturity securities | Non-U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		437		366
Level 2 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		458		373
Level 2 | Fixed maturity securities | Non-U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		537		496
Level 2 | Fixed maturity securities | Non-U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,733		3,119
Level 2 | Fixed maturity securities | Residential mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		4,123		4,336
Level 2 | Fixed maturity securities | Commercial mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		3,392		3,075
Level 2 | Fixed maturity securities | Other asset-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,843		3,006
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		4,149		4,301
Restricted other invested assets related to securitization entities				131
Available-for-sale equity securities		44		47
Total other invested assets		243		121
Separate account assets		0		0
Total assets		4,288		4,570
Level 3 | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities				0
Derivative assets, fair value		81		75
Securities lending collateral		0		0
Short-term investments		0
Level 3 | Interest rate swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		0		0
Level 3 | Foreign currency swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		0		0
Level 3 | Equity index options | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		81		72
Level 3 | Equity return swaps | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value				0
Level 3 | Other foreign currency contracts | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value		0		3
Level 3 | GMWB embedded derivatives | Reinsurance recoverable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value	[2]	14		16
Level 3 | Fair value | Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total other invested assets		81		75
Level 3 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1		2
Level 3 | Fixed maturity securities | State and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		37		37
Level 3 | Fixed maturity securities | Non-U.S. government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0		0
Level 3 | Fixed maturity securities | U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,327		2,487
Level 3 | Fixed maturity securities | U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		662		576
Level 3 | Fixed maturity securities | U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		158		210
Level 3 | Fixed maturity securities | U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		670		786
Level 3 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		127		121
Level 3 | Fixed maturity securities | U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		52		54
Level 3 | Fixed maturity securities | U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		47		48
Level 3 | Fixed maturity securities | U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		118		152
Level 3 | Fixed maturity securities | U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		262		258
Level 3 | Fixed maturity securities | U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		61		139
Level 3 | Fixed maturity securities | U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		170		143
Level 3 | Fixed maturity securities | Non-U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		1,451		1,533
Level 3 | Fixed maturity securities | Non-U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		359		386
Level 3 | Fixed maturity securities | Non-U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		177		206
Level 3 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		169		182
Level 3 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		129		139
Level 3 | Fixed maturity securities | Non-U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		29		67
Level 3 | Fixed maturity securities | Non-U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		139		109
Level 3 | Fixed maturity securities | Non-U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		150		169
Level 3 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		69		69
Level 3 | Fixed maturity securities | Non-U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		181		181
Level 3 | Fixed maturity securities | Non-U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		49		25
Level 3 | Fixed maturity securities | Residential mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		86		43
Level 3 | Fixed maturity securities | Commercial mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		22		54
Level 3 | Fixed maturity securities | Other asset-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		$ 225		$ 145

[1] In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017.

[2] Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

XML

Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		$ 4,461	$ 4,651	$ 4,570	$ 5,501
Total realized and unrealized gains (losses), Included in net income (loss)		35	9	61	(35)
Total realized and unrealized gains (losses), Included in OCI		(60)	42	87	222
Purchases		168	227	448	505
Sales		(42)	(120)	(245)	(180)
Issuances		0	1	1	2
Settlements		(265)	(155)	(434)	(366)
Transfer into Level 3	[1]	79	123	198	389
Transfer out of Level 3	[1]	(88)	(168)	(398)	(1,428)
Ending balance		4,288	4,610	4,288	4,610
Total gains (losses) included in net income (loss) attributable to assets still held		17	(2)	33	11
Other invested assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		81	58	75	34
Total realized and unrealized gains (losses), Included in net income (loss)		16	9	39	3
Total realized and unrealized gains (losses), Included in OCI		0	0	0	0
Purchases		15	15	36	52
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		(31)	(20)	(69)	(27)
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		81	62	81	62
Total gains (losses) included in net income (loss) attributable to assets still held		13	0	19	(6)
Other invested assets | Derivative assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		81	58	75	34
Total realized and unrealized gains (losses), Included in net income (loss)		16	9	39	3
Total realized and unrealized gains (losses), Included in OCI		0	0	0	0
Purchases		15	15	36	52
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		(31)	(20)	(69)	(27)
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		81	62	81	62
Total gains (losses) included in net income (loss) attributable to assets still held		13	0	19	(6)
Other invested assets | Derivative assets | Equity index options
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		81	57	72	30
Total realized and unrealized gains (losses), Included in net income (loss)		16	9	42	5
Total realized and unrealized gains (losses), Included in OCI		0	0	0	0
Purchases		15	15	36	51
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		(31)	(20)	(69)	(25)
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		81	61	81	61
Total gains (losses) included in net income (loss) attributable to assets still held		13	0	21	(4)
Other invested assets | Derivative assets | Other foreign currency contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			1	3	3
Total realized and unrealized gains (losses), Included in net income (loss)			0	(3)	(2)
Total realized and unrealized gains (losses), Included in OCI			0	0	0
Purchases			0	0	1
Sales			0	0	0
Issuances			0	0	0
Settlements			0	0	(1)
Transfer into Level 3	[1]		0	0	0
Transfer out of Level 3	[1]		0	0	0
Ending balance		0	1	0	1
Total gains (losses) included in net income (loss) attributable to assets still held			0	(2)	(2)
Other invested assets | Derivative assets | Credit default swaps
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance					1
Total realized and unrealized gains (losses), Included in net income (loss)					0
Total realized and unrealized gains (losses), Included in OCI					0
Purchases					0
Sales					0
Issuances					0
Settlements					(1)
Transfer into Level 3	[1]				0
Transfer out of Level 3	[1]				0
Ending balance			0		0
Total gains (losses) included in net income (loss) attributable to assets still held					0
Reinsurance recoverable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	[2]	15	26	16	17
Total realized and unrealized gains (losses), Included in net income (loss)	[2]	(1)	(3)	(3)	5
Total realized and unrealized gains (losses), Included in OCI	[2]	0	0	0	0
Purchases	[2]	0	0	0	0
Sales	[2]	0	0	0	0
Issuances	[2]	0	1	1	2
Settlements	[2]	0	0	0	0
Transfer into Level 3	[1],[2]	0	0	0	0
Transfer out of Level 3	[1],[2]	0	0	0	0
Ending balance	[2]	14	24	14	24
Total gains (losses) included in net income (loss) attributable to assets still held	[2]	(1)	(3)	(3)	5
Restricted other invested assets related to securitization entities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			131	131	232
Total realized and unrealized gains (losses), Included in net income (loss)			0	0	(55)
Total realized and unrealized gains (losses), Included in OCI			0	0	0
Purchases			0	0	0
Sales			0	(131)	0
Issuances			0	0	0
Settlements			0	0	(46)
Transfer into Level 3	[1]		0	0	0
Transfer out of Level 3	[1]		0	0	0
Ending balance		0	131	0	131
Total gains (losses) included in net income (loss) attributable to assets still held			0	0	9
Fixed maturity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		4,317	4,392	4,301	5,180
Total realized and unrealized gains (losses), Included in net income (loss)		20	3	25	12
Total realized and unrealized gains (losses), Included in OCI		(60)	42	87	222
Purchases		153	210	411	445
Sales		(41)	(120)	(113)	(180)
Issuances		0	0	0	0
Settlements		(234)	(135)	(365)	(293)
Transfer into Level 3	[1]	79	123	198	389
Transfer out of Level 3	[1]	(85)	(168)	(395)	(1,428)
Ending balance		4,149	4,347	4,149	4,347
Total gains (losses) included in net income (loss) attributable to assets still held		5	1	17	3
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		1	2	2	3
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	0
Total realized and unrealized gains (losses), Included in OCI		0	0	0	0
Purchases		0	0	0	0
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		0	0	(1)	(1)
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		1	2	1	2
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | State and Political Subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		37	36	37	35
Total realized and unrealized gains (losses), Included in net income (loss)		1	1	2	2
Total realized and unrealized gains (losses), Included in OCI		(1)	0	(2)	(1)
Purchases		0	0	0	7
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		0	0	0	0
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	(1)	0	(7)
Ending balance		37	36	37	36
Total gains (losses) included in net income (loss) attributable to assets still held		1	1	2	2
Fixed maturity securities | U.S. corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		2,560	2,420	2,487	2,329
Total realized and unrealized gains (losses), Included in net income (loss)		21	6	30	22
Total realized and unrealized gains (losses), Included in OCI		(64)	24	38	126
Purchases		52	117	178	233
Sales		(18)	(21)	(45)	(53)
Issuances		0	0	0	0
Settlements		(212)	(49)	(261)	(139)
Transfer into Level 3	[1]	8	55	76	199
Transfer out of Level 3	[1]	(20)	(47)	(176)	(212)
Ending balance		2,327	2,505	2,327	2,505
Total gains (losses) included in net income (loss) attributable to assets still held		4	7	13	16
Fixed maturity securities | U.S. corporate | Utilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		638	552	576	449
Total realized and unrealized gains (losses), Included in net income (loss)		0	1	0	1
Total realized and unrealized gains (losses), Included in OCI		0	4	20	28
Purchases		26	54	70	101
Sales		0	(6)	0	(6)
Issuances		0	0	0	0
Settlements		(2)	(1)	(4)	(9)
Transfer into Level 3	[1]	0	1	30	68
Transfer out of Level 3	[1]	0	(43)	(30)	(70)
Ending balance		662	562	662	562
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | U.S. corporate | Energy
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		160	208	210	253
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	(1)	0
Total realized and unrealized gains (losses), Included in OCI		0	3	6	(1)
Purchases		0	0	0	0
Sales		0	0	(10)	0
Issuances		0	0	0	0
Settlements		(2)	(8)	(32)	(10)
Transfer into Level 3	[1]	0	0	1	7
Transfer out of Level 3	[1]	0	(1)	(16)	(47)
Ending balance		158	202	158	202
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	(1)	0
Fixed maturity securities | U.S. corporate | Finance and insurance
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		861	775	786	715
Total realized and unrealized gains (losses), Included in net income (loss)		3	4	11	12
Total realized and unrealized gains (losses), Included in OCI		(52)	14	(1)	58
Purchases		22	27	75	54
Sales		(14)	(5)	(31)	(14)
Issuances		0	0	0	0
Settlements		(157)	(32)	(163)	(59)
Transfer into Level 3	[1]	8	37	8	72
Transfer out of Level 3	[1]	(1)	0	(15)	(18)
Ending balance		670	820	670	820
Total gains (losses) included in net income (loss) attributable to assets still held		2	5	10	11
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		122	102	121	109
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	0
Total realized and unrealized gains (losses), Included in OCI		1	1	2	7
Purchases		4	5	4	5
Sales		0	(5)	0	(18)
Issuances		0	0	0	0
Settlements		0	0	0	0
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		127	103	127	103
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | U.S. corporate | Technology and communications
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		58	40	54	35
Total realized and unrealized gains (losses), Included in net income (loss)		1	1	2	2
Total realized and unrealized gains (losses), Included in OCI		(3)	0	3	4
Purchases		0	12	14	12
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		(1)	0	(1)	0
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	(3)	0	(20)	0
Ending balance		52	53	52	53
Total gains (losses) included in net income (loss) attributable to assets still held		1	1	2	2
Fixed maturity securities | U.S. corporate | Industrial
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		61	78	48	61
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	0
Total realized and unrealized gains (losses), Included in OCI		0	0	0	5
Purchases		0	0	13	0
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		0	0	0	0
Transfer into Level 3	[1]	0	0	0	12
Transfer out of Level 3	[1]	(14)	0	(14)	0
Ending balance		47	78	47	78
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | U.S. corporate | Capital goods
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		118	135	152	180
Total realized and unrealized gains (losses), Included in net income (loss)		1	0	1	1
Total realized and unrealized gains (losses), Included in OCI		0	1	3	6
Purchases		0	0	0	0
Sales		0	0	0	(10)
Issuances		0	0	0	0
Settlements		(1)	0	(1)	0
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	(37)	(41)
Ending balance		118	136	118	136
Total gains (losses) included in net income (loss) attributable to assets still held		1	1	1	1
Fixed maturity securities | U.S. corporate | Consumer-cyclical
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		266	254	258	239
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	4
Total realized and unrealized gains (losses), Included in OCI		0	0	9	9
Purchases		0	19	2	44
Sales		0	(5)	0	(5)
Issuances		0	0	0	0
Settlements		(2)	(1)	(5)	(42)
Transfer into Level 3	[1]	0	1	0	19
Transfer out of Level 3	[1]	(2)	(3)	(2)	(3)
Ending balance		262	265	262	265
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | U.S. corporate | Transportation
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		100	129	139	106
Total realized and unrealized gains (losses), Included in net income (loss)		16	0	17	1
Total realized and unrealized gains (losses), Included in OCI		(10)	1	(5)	9
Purchases		0	0	0	17
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		(45)	(6)	(48)	(14)
Transfer into Level 3	[1]	0	0	0	5
Transfer out of Level 3	[1]	0	0	(42)	0
Ending balance		61	124	61	124
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	1	1
Fixed maturity securities | U.S. corporate | Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		176	147	143	182
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	1
Total realized and unrealized gains (losses), Included in OCI		0	0	1	1
Purchases		0	0	0	0
Sales		(4)	0	(4)	0
Issuances		0	0	0	0
Settlements		(2)	(1)	(7)	(5)
Transfer into Level 3	[1]	0	16	37	16
Transfer out of Level 3	[1]	0	0	0	(33)
Ending balance		170	162	170	162
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	1
Fixed maturity securities | Non-U.S. corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		1,444	1,607	1,533	1,545
Total realized and unrealized gains (losses), Included in net income (loss)		0	2	3	4
Total realized and unrealized gains (losses), Included in OCI		6	14	35	91
Purchases		13	93	68	119
Sales		(23)	(49)	(24)	(57)
Issuances		0	0	0	0
Settlements		(16)	(73)	(89)	(117)
Transfer into Level 3	[1]	27	38	38	111
Transfer out of Level 3	[1]	0	(43)	(113)	(107)
Ending balance		1,451	1,589	1,451	1,589
Total gains (losses) included in net income (loss) attributable to assets still held		0	(1)	2	1
Fixed maturity securities | Non-U.S. corporate | Utilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		359	331	386	287
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	0
Total realized and unrealized gains (losses), Included in OCI		0	1	5	9
Purchases		0	52	30	62
Sales		0	(5)	0	(5)
Issuances		0	0	0	0
Settlements		0	0	0	0
Transfer into Level 3	[1]	0	0	0	26
Transfer out of Level 3	[1]	0	(10)	(62)	(10)
Ending balance		359	369	359	369
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | Non-U.S. corporate | Energy
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		177	234	206	252
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	0
Total realized and unrealized gains (losses), Included in OCI		1	9	6	33
Purchases		0	8	0	8
Sales		0	(9)	(1)	(11)
Issuances		0	0	0	0
Settlements		(1)	(17)	(1)	(31)
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	(33)	(26)
Ending balance		177	225	177	225
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | Non-U.S. corporate | Finance and insurance
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		172	201	182	191
Total realized and unrealized gains (losses), Included in net income (loss)		1	0	4	2
Total realized and unrealized gains (losses), Included in OCI		1	3	9	11
Purchases		0	11	4	11
Sales		0	(1)	0	(1)
Issuances		0	0	0	0
Settlements		(5)	0	(30)	0
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		169	214	169	214
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	2	2
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		129	168	139	169
Total realized and unrealized gains (losses), Included in net income (loss)		0	2	0	2
Total realized and unrealized gains (losses), Included in OCI		0	(1)	2	9
Purchases		0	3	0	3
Sales		0	(3)	0	(3)
Issuances		0	0	0	0
Settlements		0	(37)	(12)	(48)
Transfer into Level 3	[1]	0	12	0	12
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		129	144	129	144
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | Non-U.S. corporate | Technology and communications
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		48	80	67	62
Total realized and unrealized gains (losses), Included in net income (loss)		1	0	1	0
Total realized and unrealized gains (losses), Included in OCI		1	1	1	6
Purchases		0	2	0	18
Sales		(21)	(2)	(21)	(5)
Issuances		0	0	0	0
Settlements		0	0	(19)	0
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		29	81	29	81
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | Non-U.S. corporate | Industrial
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		112	95	109	84
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	0
Total realized and unrealized gains (losses), Included in OCI		0	2	3	7
Purchases		13	17	13	17
Sales		0	(17)	0	(20)
Issuances		0	0	0	0
Settlements		0	0	0	0
Transfer into Level 3	[1]	14	15	14	24
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		139	112	139	112
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | Non-U.S. corporate | Capital goods
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		149	212	169	213
Total realized and unrealized gains (losses), Included in net income (loss)		0	1	0	1
Total realized and unrealized gains (losses), Included in OCI		1	(2)	3	7
Purchases		0	0	0	0
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		0	(5)	(15)	(15)
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	(33)	(7)	(33)
Ending balance		150	173	150	173
Total gains (losses) included in net income (loss) attributable to assets still held		0	1	0	1
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		67	71	69	71
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	0
Total realized and unrealized gains (losses), Included in OCI		0	0	0	2
Purchases		0	0	0	0
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		0	0	(2)	(2)
Transfer into Level 3	[1]	2	0	2	0
Transfer out of Level 3	[1]	0	0	0	0
Ending balance		69	71	69	71
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | Non-U.S. corporate | Transportation
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		190	186	181	144
Total realized and unrealized gains (losses), Included in net income (loss)		0	1	0	1
Total realized and unrealized gains (losses), Included in OCI		1	(1)	4	3
Purchases		0	0	6	0
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		(10)	(14)	(10)	(14)
Transfer into Level 3	[1]	0	1	11	39
Transfer out of Level 3	[1]	0	0	(11)	0
Ending balance		181	173	181	173
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | Non-U.S. corporate | Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		41	29	25	72
Total realized and unrealized gains (losses), Included in net income (loss)		(2)	(2)	(2)	(2)
Total realized and unrealized gains (losses), Included in OCI		1	2	2	4
Purchases		0	0	15	0
Sales		(2)	(12)	(2)	(12)
Issuances		0	0	0	0
Settlements		0	0	0	(7)
Transfer into Level 3	[1]	11	10	11	10
Transfer out of Level 3	[1]	0	0	0	(38)
Ending balance		49	27	49	27
Total gains (losses) included in net income (loss) attributable to assets still held		0	(2)	0	(2)
Fixed maturity securities | Residential mortgage-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		73	96	43	116
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	0
Total realized and unrealized gains (losses), Included in OCI		0	0	1	2
Purchases		22	0	26	51
Sales		0	(45)	0	(45)
Issuances		0	0	0	0
Settlements		(1)	(8)	(2)	(13)
Transfer into Level 3	[1]	0	5	26	13
Transfer out of Level 3	[1]	(8)	(11)	(8)	(87)
Ending balance		86	37	86	37
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | Commercial mortgage-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		52	33	54	10
Total realized and unrealized gains (losses), Included in net income (loss)		(1)	0	(2)	0
Total realized and unrealized gains (losses), Included in OCI		(2)	(3)	4	1
Purchases		14	0	23	23
Sales		0	0	(9)	0
Issuances		0	0	0	0
Settlements		0	0	0	(4)
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	(41)	(2)	(48)	(2)
Ending balance		22	28	22	28
Total gains (losses) included in net income (loss) attributable to assets still held		0	0	0	0
Fixed maturity securities | Other asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		150	198	145	1,142
Total realized and unrealized gains (losses), Included in net income (loss)		(1)	(6)	(8)	(16)
Total realized and unrealized gains (losses), Included in OCI		1	7	11	3
Purchases		52	0	116	12
Sales		0	(5)	(35)	(25)
Issuances		0	0	0	0
Settlements		(5)	(5)	(12)	(19)
Transfer into Level 3	[1]	44	25	58	66
Transfer out of Level 3	[1]	(16)	(64)	(50)	(1,013)
Ending balance		225	150	225	150
Total gains (losses) included in net income (loss) attributable to assets still held		0	(6)	0	(16)
Equity Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		48	44	47	38
Total realized and unrealized gains (losses), Included in net income (loss)		0	0	0	0
Total realized and unrealized gains (losses), Included in OCI		0	0	0	0
Purchases		0	2	1	8
Sales		(1)	0	(1)	0
Issuances		0	0	0	0
Settlements		0	0	0	0
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	(3)	0	(3)	0
Ending balance		44	46	44	46
Total gains (losses) included in net income (loss) attributable to assets still held		$ 0	$ 0	$ 0	$ 0

[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.

[2] Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

XML

Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair value of financial instruments [Abstract]
Total realized and unrealized gains (losses) included in net income (loss), assets	$ 35	$ 9	$ 61	$ (35)
Total gains (losses) included in net income (loss) attributable to assets still held, assets	17	(2)	33	11
Net Investment Income
Fair value of financial instruments [Abstract]
Total realized and unrealized gains (losses) included in net income (loss), assets	7	11	22	(33)
Total gains (losses) included in net income (loss) attributable to assets still held, assets	5	9	18	23
Net investment gains (losses)
Fair value of financial instruments [Abstract]
Total realized and unrealized gains (losses) included in net income (loss), assets	28	(2)	39	(2)
Total gains (losses) included in net income (loss) attributable to assets still held, assets	$ 12	$ (11)	$ 15	$ (12)

XML

Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2017		Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liabilities, fair value		$ 729	[1]	$ 1,041
Fixed maturity securities available-for-sale, at fair value		62,552		60,572
Derivative assets, fair value		275	[1]	724
Policyholder account balances
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liabilities, fair value		665		658
Policyholder account balances | GMWB embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liabilities, fair value	[2]	257		303
Policyholder account balances | Fixed index annuity embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liabilities, fair value		394		344
Policyholder account balances | Indexed universal life embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liabilities, fair value		14		11
Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fixed maturity securities available-for-sale, at fair value		$ 4,149		4,301
Level 3 | Other invested assets | Equity index options
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Discounted cash flows
Fair value input, equity index volatility, lower limit		6.00%
Fair value input, equity index volatility, upper limit		27.00%
Fair value input, equity index volatility, weighted-average		18.00%
Derivative assets, fair value		$ 81
Level 3 | Policyholder account balances
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liabilities, fair value		665		658
Level 3 | Policyholder account balances | GMWB embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liabilities, fair value	[2]	$ 257		303
Valuation technique	[2]	Stochastic cash flow model
Fair value, withdrawal utilization rate, lower limit	[2]	40.00%
Fair value, withdrawal utilization rate, upper limit	[2]	84.00%
Fair value, lapse rate, lower limit	[2]	0.00%
Fair value, lapse rate, upper limit	[2]	8.00%
Fair value input, credit spreads, lower limit	[2]	0.26%
Fair value input, credit spreads, upper limit	[2]	0.83%
Fair value input, equity index volatility, lower limit	[2]	13.00%
Fair value input, equity index volatility, upper limit	[2]	24.00%
Fair value, withdrawal utilization rate, weighted-average	[2]	65.00%
Fair value, lapse rate, weighted-average	[2]	4.00%
Fair value input, credit spreads, weighted-average	[2]	0.66%
Fair value input, equity index volatility, weighted-average	[2]	20.00%
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liabilities, fair value		$ 394		344
Valuation technique		Option budget method
Fair value, expected future interest credited, lower limit		0.00%
Fair value, expected future interest credited, upper limit		2.00%
Fair value, expected future interest credited, weighted-average		1.00%
Level 3 | Policyholder account balances | Indexed universal life embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liabilities, fair value		$ 14		$ 11
Valuation technique		Option budget method
Fair value, expected future interest credited, lower limit		3.00%
Fair value, expected future interest credited, upper limit		8.00%
Fair value, expected future interest credited, weighted-average		5.00%
Internal Models | Level 3 | U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 2,130
Fair value input, credit spreads, lower limit		0.56%
Fair value input, credit spreads, upper limit		3.79%
Fair value input, credit spreads, weighted-average		1.46%
Internal Models | Level 3 | U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 647
Fair value input, credit spreads, lower limit		0.73%
Fair value input, credit spreads, upper limit		3.79%
Fair value input, credit spreads, weighted-average		1.35%
Internal Models | Level 3 | U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 86
Fair value input, credit spreads, lower limit		0.80%
Fair value input, credit spreads, upper limit		1.93%
Fair value input, credit spreads, weighted-average		1.42%
Internal Models | Level 3 | U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 629
Fair value input, credit spreads, lower limit		0.70%
Fair value input, credit spreads, upper limit		3.54%
Fair value input, credit spreads, weighted-average		1.80%
Internal Models | Level 3 | U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 127
Fair value input, credit spreads, lower limit		0.88%
Fair value input, credit spreads, upper limit		2.47%
Fair value input, credit spreads, weighted-average		1.32%
Internal Models | Level 3 | U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 52
Fair value input, credit spreads, lower limit		0.60%
Fair value input, credit spreads, upper limit		3.53%
Fair value input, credit spreads, weighted-average		2.99%
Internal Models | Level 3 | U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 20
Fair value input, credit spreads, lower limit		0.90%
Fair value input, credit spreads, upper limit		2.07%
Fair value input, credit spreads, weighted-average		1.62%
Internal Models | Level 3 | U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 118
Fair value input, credit spreads, lower limit		0.90%
Fair value input, credit spreads, upper limit		2.47%
Fair value input, credit spreads, weighted-average		1.40%
Internal Models | Level 3 | U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 236
Fair value input, credit spreads, lower limit		0.56%
Fair value input, credit spreads, upper limit		2.10%
Fair value input, credit spreads, weighted-average		1.29%
Internal Models | Level 3 | U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 54
Fair value input, credit spreads, lower limit		0.56%
Fair value input, credit spreads, upper limit		1.23%
Fair value input, credit spreads, weighted-average		0.89%
Internal Models | Level 3 | U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 161
Fair value input, credit spreads, lower limit		0.64%
Fair value input, credit spreads, upper limit		1.35%
Fair value input, credit spreads, weighted-average		0.75%
Internal Models | Level 3 | Non-U.S. corporate
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 1,341
Fair value input, credit spreads, lower limit		0.56%
Fair value input, credit spreads, upper limit		2.47%
Fair value input, credit spreads, weighted-average		1.20%
Internal Models | Level 3 | Non-U.S. corporate | Utilities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 358
Fair value input, credit spreads, lower limit		0.77%
Fair value input, credit spreads, upper limit		1.58%
Fair value input, credit spreads, weighted-average		1.16%
Internal Models | Level 3 | Non-U.S. corporate | Energy
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 146
Fair value input, credit spreads, lower limit		0.90%
Fair value input, credit spreads, upper limit		1.69%
Fair value input, credit spreads, weighted-average		1.16%
Internal Models | Level 3 | Non-U.S. corporate | Finance and insurance
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 160
Fair value input, credit spreads, lower limit		0.69%
Fair value input, credit spreads, upper limit		1.79%
Fair value input, credit spreads, weighted-average		1.07%
Internal Models | Level 3 | Non-U.S. corporate | Consumer-non-cyclical
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 118
Fair value input, credit spreads, lower limit		0.56%
Fair value input, credit spreads, upper limit		1.91%
Fair value input, credit spreads, weighted-average		1.12%
Internal Models | Level 3 | Non-U.S. corporate | Technology and communications
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 29
Fair value input, credit spreads, lower limit		1.23%
Fair value input, credit spreads, upper limit		2.22%
Fair value input, credit spreads, weighted-average		1.71%
Internal Models | Level 3 | Non-U.S. corporate | Industrial
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 130
Fair value input, credit spreads, lower limit		1.09%
Fair value input, credit spreads, upper limit		2.47%
Fair value input, credit spreads, weighted-average		1.46%
Internal Models | Level 3 | Non-U.S. corporate | Capital goods
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 121
Fair value input, credit spreads, lower limit		0.88%
Fair value input, credit spreads, upper limit		1.45%
Fair value input, credit spreads, weighted-average		1.12%
Internal Models | Level 3 | Non-U.S. corporate | Consumer-cyclical
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 69
Fair value input, credit spreads, lower limit		0.87%
Fair value input, credit spreads, upper limit		1.69%
Fair value input, credit spreads, weighted-average		1.12%
Internal Models | Level 3 | Non-U.S. corporate | Transportation
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 161
Fair value input, credit spreads, lower limit		0.78%
Fair value input, credit spreads, upper limit		2.10%
Fair value input, credit spreads, weighted-average		1.15%
Internal Models | Level 3 | Non-U.S. corporate | Other
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation technique		Internal models
Fixed maturity securities available-for-sale, at fair value		$ 49
Fair value input, credit spreads, lower limit		1.01%
Fair value input, credit spreads, upper limit		2.33%
Fair value input, credit spreads, weighted-average		1.81%

[1] In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017.

[2] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions		Sep. 30, 2017		Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		$ 729	[1]	$ 1,041
Borrowings related to securitization entities		12		12
Total liabilities		741		1,053
Other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		64		383
Other liabilities | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		39		349
Other liabilities | Foreign currency swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value				5
Other liabilities | Equity return swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		2		1
Other liabilities | Other foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		23		27
Other liabilities | Credit default swaps related to securitization entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value				1
Policyholder account balances
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		665		658
Policyholder account balances | GMWB embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value	[2]	257		303
Policyholder account balances | Fixed index annuity embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		394		344
Policyholder account balances | Indexed universal life embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		14		11
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Borrowings related to securitization entities		0		0
Total liabilities		0		0
Level 1 | Other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 1 | Other liabilities | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 1 | Other liabilities | Foreign currency swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value				0
Level 1 | Other liabilities | Equity return swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 1 | Other liabilities | Other foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 1 | Other liabilities | Credit default swaps related to securitization entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value				0
Level 1 | Policyholder account balances
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 1 | Policyholder account balances | GMWB embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value	[2]	0		0
Level 1 | Policyholder account balances | Fixed index annuity embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 1 | Policyholder account balances | Indexed universal life embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Borrowings related to securitization entities		0		0
Total liabilities		64		383
Level 2 | Other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		64		383
Level 2 | Other liabilities | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		39		349
Level 2 | Other liabilities | Foreign currency swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value				5
Level 2 | Other liabilities | Equity return swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		2		1
Level 2 | Other liabilities | Other foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		23		27
Level 2 | Other liabilities | Credit default swaps related to securitization entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value				1
Level 2 | Policyholder account balances
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 2 | Policyholder account balances | GMWB embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value	[2]	0		0
Level 2 | Policyholder account balances | Fixed index annuity embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 2 | Policyholder account balances | Indexed universal life embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Borrowings related to securitization entities		12		12
Total liabilities		677		670
Level 3 | Other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 3 | Other liabilities | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 3 | Other liabilities | Foreign currency swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value				0
Level 3 | Other liabilities | Equity return swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 3 | Other liabilities | Other foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		0		0
Level 3 | Other liabilities | Credit default swaps related to securitization entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value				0
Level 3 | Policyholder account balances
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		665		658
Level 3 | Policyholder account balances | GMWB embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value	[2]	257		303
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		394		344
Level 3 | Policyholder account balances | Indexed universal life embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities, fair value		$ 14		$ 11

[1] In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017.

[2] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		$ 682	$ 869	$ 670	$ 799
Total realized and unrealized (gains) losses included in net (income) loss		(12)	(50)	(14)	1
Total realized and unrealized (gains) losses included in OCI		0	0	0	0
Purchases		0	0	0	0
Sales		0	0	0	0
Issuances		10	11	29	43
Settlements		(3)	(3)	(8)	(13)
Transfer into Level 3		0	0	0	0
Transfer out of Level 3		0	0	0	(3)
Ending balance		677	827	677	827
Total (gains) losses included in net (income) loss attributable to liabilities still held		(12)	(46)	(11)	88
Derivative liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance					14
Total realized and unrealized (gains) losses included in net (income) loss					(13)
Total realized and unrealized (gains) losses included in OCI					0
Purchases					0
Sales					0
Issuances					0
Settlements					2
Transfer into Level 3					0
Transfer out of Level 3					(3)
Ending balance			0		0
Total (gains) losses included in net (income) loss attributable to liabilities still held					0
Credit default swaps related to securitization entities | Derivative liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance					14
Total realized and unrealized (gains) losses included in net (income) loss					(13)
Total realized and unrealized (gains) losses included in OCI					0
Purchases					0
Sales					0
Issuances					0
Settlements					2
Transfer into Level 3					0
Transfer out of Level 3					(3)
Ending balance			0		0
Total (gains) losses included in net (income) loss attributable to liabilities still held					0
Policyholder account balances
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		670	858	658	704
Total realized and unrealized (gains) losses included in net (income) loss		(12)	(50)	(15)	79
Total realized and unrealized (gains) losses included in OCI		0	0	0	0
Purchases		0	0	0	0
Sales		0	0	0	0
Issuances		10	11	29	43
Settlements		(3)	(3)	(7)	(10)
Transfer into Level 3		0	0	0	0
Transfer out of Level 3		0	0	0	0
Ending balance		665	816	665	816
Total (gains) losses included in net (income) loss attributable to liabilities still held		(12)	(46)	(12)	88
Policyholder account balances | GMWB embedded derivatives
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	[1]	281	494	303	352
Total realized and unrealized (gains) losses included in net (income) loss	[1]	(31)	(63)	(67)	63
Total realized and unrealized (gains) losses included in OCI	[1]	0	0	0	0
Purchases	[1]	0	0	0	0
Sales	[1]	0	0	0	0
Issuances	[1]	7	8	21	24
Settlements	[1]	0	0	0	0
Transfer into Level 3	[1]	0	0	0	0
Transfer out of Level 3	[1]	0	0	0	0
Ending balance	[1]	257	439	257	439
Total (gains) losses included in net (income) loss attributable to liabilities still held	[1]	(31)	(59)	(64)	72
Policyholder account balances | Fixed index annuity embedded derivatives
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		376	351	344	342
Total realized and unrealized (gains) losses included in net (income) loss		21	16	57	22
Total realized and unrealized (gains) losses included in OCI		0	0	0	0
Purchases		0	0	0	0
Sales		0	0	0	0
Issuances		0	0	0	10
Settlements		(3)	(3)	(7)	(10)
Transfer into Level 3		0	0	0	0
Transfer out of Level 3		0	0	0	0
Ending balance		394	364	394	364
Total (gains) losses included in net (income) loss attributable to liabilities still held		21	16	57	22
Policyholder account balances | Indexed universal life embedded derivatives
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		13	13	11	10
Total realized and unrealized (gains) losses included in net (income) loss		(2)	(3)	(5)	(6)
Total realized and unrealized (gains) losses included in OCI		0	0	0	0
Purchases		0	0	0	0
Sales		0	0	0	0
Issuances		3	3	8	9
Settlements		0	0	0	0
Transfer into Level 3		0	0	0	0
Transfer out of Level 3		0	0	0	0
Ending balance		14	13	14	13
Total (gains) losses included in net (income) loss attributable to liabilities still held		(2)	(3)	(5)	(6)
Borrowings related to securitization entities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		12	11	12	81
Total realized and unrealized (gains) losses included in net (income) loss		0	0	1	(65)
Total realized and unrealized (gains) losses included in OCI		0	0	0	0
Purchases		0	0	0	0
Sales		0	0	0	0
Issuances		0	0	0	0
Settlements		0	0	(1)	(5)
Transfer into Level 3		0	0	0	0
Transfer out of Level 3		0	0	0	0
Ending balance		12	11	12	11
Total (gains) losses included in net (income) loss attributable to liabilities still held		$ 0	$ 0	$ 1	$ 0

[1] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

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Gains and Losses Included in Net (Income) Loss from Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total realized and unrealized (gains) losses included in net (income) loss, liabilities	$ (12)	$ (50)	$ (14)	$ 1
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities	(12)	(46)	(11)	88
Net Investment Income
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total realized and unrealized (gains) losses included in net (income) loss, liabilities	0	0	0	0
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities	0	0	0	0
Net investment gains (losses)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total realized and unrealized (gains) losses included in net (income) loss, liabilities	(12)	(50)	(14)	1
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities	$ (12)	$ (46)	$ (11)	$ 88

XML

Activity Impacting Deferred Acquisition Costs (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Deferred Policy Acquisition Costs [Line Items]
Unamortized beginning balance	$ 4,241	$ 4,569
Impact of foreign currency translation	12	8
Costs deferred	67	124
Amortization, net of interest accretion	(261)	(257)
Unamortized ending balance	4,059	4,444
Accumulated effect of net unrealized investment (gains) losses	(1,717)	(462)
Ending balance	$ 2,342	$ 3,982	$ 3,571

XML

Deferred Acquisition Costs - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Deferred Policy Acquisition Costs [Line Items]
Deferred Policy acquisition costs amortization				$ 261,000,000	$ 257,000,000
Accumulated effect of net unrealized investment (gains) losses				1,717,000,000	462,000,000
Deferred acquisition costs	$ 2,342,000,000	$ 3,982,000,000		2,342,000,000	3,982,000,000	$ 3,571,000,000
Increase in future policy benefit reserves	(92,000,000)	$ (81,000,000)		(429,000,000)	(612,000,000)
Loss Recognition Testing | Immediate Fixed Annuity
Deferred Policy Acquisition Costs [Line Items]
Deferred Policy acquisition costs amortization			$ 14,000,000
Increase in future policy benefit reserves				31,000,000	$ 24,000,000
Long-term Care Insurance
Deferred Policy Acquisition Costs [Line Items]
Accumulated effect of net unrealized investment (gains) losses				1,300,000,000
Deferred acquisition costs	$ 0			0
Increase in future policy benefit reserves				$ 333,000,000

XML

Changes in Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Beginning balance	$ 9,256	$ 8,095
Less reinsurance recoverables	(2,409)	(2,122)
Net beginning balance	6,847	5,973
Current year	2,748	2,569
Prior years	(306)	320
Total incurred	2,442	2,889
Current year	(755)	(727)
Prior years	(1,746)	(1,646)
Total paid	(2,501)	(2,373)
Interest on liability for policy and contract claims	223	188
Foreign currency translation	27	14
Net ending balance	7,038	6,691
Add reinsurance recoverables	2,346	2,178
Ending balance	$ 9,384	$ 8,869

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Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred related to insured events of prior year	$ (306)	$ 320

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Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Examination [Line Items]
Pre-tax income (loss)	$ 286	$ (125)	$ 1,019	$ 376
Statutory U.S. federal income tax rate	100	(44)	357	132
State income tax, net of federal income tax effect	1	0	(2)	1
Tax favored investments	6	1	3	(2)
Effect of foreign operations	(6)	5	(14)	(12)
Non-deductible expenses	0	(1)	1	(1)
Valuation allowance	0	265	0	240
Stock-based compensation	1	2	3	5
Loss on sale of business	0	0	0	(1)
Other, net	0	(6)	0	(7)
Total provision (benefit) for income taxes	$ 102	$ 222	$ 348	$ 355
Statutory U.S. federal income tax rate	35.00%	35.00%	35.00%	35.00%
State income tax, net of federal income tax effect	0.10%	0.00%	(0.20%)	0.20%
Tax favored investments	1.90%	(0.70%)	0.30%	(0.50%)
Effect of foreign operations	(2.00%)	(3.90%)	(1.30%)	(3.30%)
Non-deductible expenses	0.00%	0.50%	0.10%	(0.10%)
Valuation allowance	0.00%	(212.90%)	0.00%	63.80%
Stock-based compensation	0.50%	(1.80%)	0.20%	1.40%
Loss on sale of business	0.00%	0.00%	0.00%	(0.20%)
Other, net	0.00%	4.80%	0.00%	(1.80%)
Effective rate	35.50%	(179.00%)	34.10%	94.50%

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Taxes [Line Items]
Valuation allowance	$ 0	$ 265	$ 0	$ 240
Foreign Tax Credit
Income Taxes [Line Items]
Valuation allowance		$ 265		$ 265

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Segment Information - Additional Information (Detail) $ in Millions	3 Months Ended					9 Months Ended
	Sep. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Sep. 30, 2017 USD ($) Segment	Sep. 30, 2016 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Segment						5
Assumed tax rate on adjustments to net operating income						35.00%
Expenses related to restructuring	$ 1	$ 1	$ 2	$ 5	$ 15	$ 2	$ 22
Gain (loss) on sale of business, before taxes	0		0			0	3
Gains (losses) related to early extinguishment of debt	0		0			0	48
Gains (losses) from life block transactions, pre-tax	0		0		(9)	0	(9)
Fees associated with bond consent solicitation	$ 0		$ 0			$ 0	$ 18
Borrowings related to securitization entities
Segment Reporting Information [Line Items]
Gains (losses) related to early extinguishment of debt				64
U.S. Life Insurance
Segment Reporting Information [Line Items]
Life insurance premiums ceded					326
European Mortgage Insurance Business
Segment Reporting Information [Line Items]
Gain (loss) on sale of business, before taxes				(2)	(7)
Gain (loss) on sale of business, tax expense (benefit)					(27)
Term Life Insurance New Business Platform
Segment Reporting Information [Line Items]
Gain (loss) on sale of business, before taxes				$ 12
Genworth Holdings
Segment Reporting Information [Line Items]
Gains (losses) related to early extinguishment of debt					4
Pre-tax make-whole expense					20
Principal amount of notes repurchased					28
Fees associated with bond consent solicitation					$ 18

XML

Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenues	$ 2,215	$ 2,150	$ 6,609	$ 6,171
Segment, Continuing Operations | U.S. Mortgage Insurance
Segment Reporting Information [Line Items]
Revenues	194	186	570	537
Segment, Continuing Operations | Canada Mortgage Insurance
Segment Reporting Information [Line Items]
Revenues	220	156	593	463
Segment, Continuing Operations | Australia Mortgage Insurance
Segment Reporting Information [Line Items]
Revenues	98	115	317	333
Segment, Continuing Operations | Long-term Care Insurance
Segment Reporting Information [Line Items]
Revenues	1,033	980	3,063	3,051
Segment, Continuing Operations | Life Insurance
Segment Reporting Information [Line Items]
Revenues	389	418	1,217	953
Segment, Continuing Operations | Fixed Annuities
Segment Reporting Information [Line Items]
Revenues	190	218	605	613
Segment, Continuing Operations | U.S. Life Insurance
Segment Reporting Information [Line Items]
Revenues	1,612	1,616	4,885	4,617
Segment, Continuing Operations | Runoff
Segment Reporting Information [Line Items]
Revenues	90	84	266	218
Segment, Continuing Operations | Corporate and Other
Segment Reporting Information [Line Items]
Revenues	$ 1	$ (7)	$ (22)	$ 3

XML

Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions		3 Months Ended					9 Months Ended
		Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Net income (loss) available to Genworth Financial, Inc.'s common stockholders		$ 107		$ (380)			$ 464	$ (155)
Add: net income attributable to noncontrolling interests		68		48			198	151
Net income (loss)		175		(332)			662	(4)
Income (loss) from discontinued operations, net of taxes		(9)		15			(9)	(25)
Income (loss) from continuing operations		184		(347)			671	21
Less: income from continuing operations attributable to noncontrolling interests		68		48			198	151
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders		116		(395)			473	(130)
Net investment (gains) losses, net	[1]	(62)		(18)			(161)	(38)
(Gains) losses from sale of businesses		0		0			0	(3)
(Gains) losses on early extinguishment of debt, net		0		0			0	(48)
Losses from life block transactions		0		0		$ 9	0	9
Expenses related to restructuring		1	$ 1	2	$ 5	$ 15	2	22
Fees associated with bond consent solicitation		0		0			0	18
Taxes on adjustments		21		6			56	(9)
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		76		(405)			370	(179)
Segment, Continuing Operations | U.S. Mortgage Insurance
Segment Reporting Information [Line Items]
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		73		67			237	189
Segment, Continuing Operations | Canada Mortgage Insurance
Segment Reporting Information [Line Items]
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		37		36			114	107
Segment, Continuing Operations | Australia Mortgage Insurance
Segment Reporting Information [Line Items]
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		12		14			37	48
Segment, Continuing Operations | Long-term Care Insurance
Segment Reporting Information [Line Items]
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		(5)		(270)			42	(199)
Segment, Continuing Operations | Life Insurance
Segment Reporting Information [Line Items]
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		(9)		48			6	110
Segment, Continuing Operations | Fixed Annuities
Segment Reporting Information [Line Items]
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		13		15			43	28
Segment, Continuing Operations | U.S. Life Insurance
Segment Reporting Information [Line Items]
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		(1)		(207)			91	(61)
Segment, Continuing Operations | Runoff
Segment Reporting Information [Line Items]
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		13		12			38	22
Segment, Continuing Operations | Corporate and Other
Segment Reporting Information [Line Items]
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders		$ (58)		$ (327)			$ (147)	$ (484)

[1] For the three months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for net investment (gains) losses attributable to noncontrolling interests of $23 million and $2 million, respectively. For the nine months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(15) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $59 million and $8 million, respectively.

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Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - Net investment gains (losses) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Adjustment for DAC and other intangibles and certain benefit reserves			$ 0	$ (15)
Adjustment for portion attributable to noncontrolling interests	$ 23	$ 2	$ 59	$ 8

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Summary of Total Assets for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total assets	$ 104,629	$ 104,658
Segment, Continuing Operations
Segment Reporting Information [Line Items]
Total assets	104,629	104,658
Segment, Continuing Operations | U.S. Mortgage Insurance
Segment Reporting Information [Line Items]
Total assets	3,015	2,674
Segment, Continuing Operations | Canada Mortgage Insurance
Segment Reporting Information [Line Items]
Total assets	5,435	4,884
Segment, Continuing Operations | Australia Mortgage Insurance
Segment Reporting Information [Line Items]
Total assets	2,814	2,619
Segment, Continuing Operations | U.S. Life Insurance
Segment Reporting Information [Line Items]
Total assets	81,858	81,933
Segment, Continuing Operations | Runoff
Segment Reporting Information [Line Items]
Total assets	11,149	11,352
Segment, Continuing Operations | Corporate and Other
Segment Reporting Information [Line Items]
Total assets	$ 358	$ 1,196

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Commitments and Contingencies - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Commitments and Contingencies Disclosure [Line Items]
Commitment to fund limited partnership investments	$ 319
Commitment to fund U.S. commercial mortgage loan investments	40
Commitment to fund private placement investments	21
Long-term Care Insurance Class Action Lawsuit
Commitments and Contingencies Disclosure [Line Items]
Settlement payment	$ 20

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Component of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances				$ 14,467	$ 14,637
OCI before reclassifications		$ 21	$ 157	195	2,422
Amounts reclassified from (to) OCI		(41)	(27)	(139)	(121)
Total other comprehensive income (loss)		(20)	130	56	2,301
Balances before nonnontrolling interests		3,075	5,218	3,150	5,311
Less: change in OCI attributable to noncontrolling interests		40	16	115	109
Balances		15,087	16,749	15,087	16,749
Net unrealized investment (gains) losses
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances	[1]	1,180	2,789	1,262	1,254
OCI before reclassifications	[1]	(70)	86	(95)	1,692
Amounts reclassified from (to) OCI	[1]	(19)	(9)	(77)	(62)
Total other comprehensive income (loss)	[1]	(89)	77	(172)	1,630
Balances before nonnontrolling interests	[1]	1,091	2,866	1,090	2,884
Less: change in OCI attributable to noncontrolling interests	[1]	(17)	6	(18)	24
Balances	[1]	1,108	2,860	1,108	2,860
Derivatives qualifying as hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances	[2]	2,064	2,439	2,085	2,045
OCI before reclassifications	[2]	10	72	29	507
Amounts reclassified from (to) OCI	[2]	(22)	(18)	(62)	(59)
Total other comprehensive income (loss)	[2]	(12)	54	(33)	448
Balances before nonnontrolling interests	[2]	2,052	2,493	2,052	2,493
Less: change in OCI attributable to noncontrolling interests	[2]	0	0	0	0
Balances	[2]	2,052	2,493	2,052	2,493
Foreign currency translation and other adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances		(149)	(140)	(253)	(289)
OCI before reclassifications		81	(1)	261	223
Amounts reclassified from (to) OCI		0	0	0	0
Total other comprehensive income (loss)		81	(1)	261	223
Balances before nonnontrolling interests		(68)	(141)	8	(66)
Less: change in OCI attributable to noncontrolling interests		57	10	133	85
Balances		(125)	(151)	(125)	(151)
Accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances		3,095	5,088	3,094	3,010
Total other comprehensive income (loss)				(59)	2,192
Balances		$ 3,035	$ 5,202	$ 3,035	$ 5,202

[1] Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

[2] See note 5 for additional information.

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Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items]
Unrecognized postretirement benefit obligation, current period OCI	$ (5)	$ 5
Unrecognized postretirement benefit obligation, current period OCI, tax	1	2
Foreign currency translation and other adjustments, current period OCI, tax	$ 28	$ 37

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Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment income		$ (797)	$ (805)	$ (2,388)	$ (2,373)
Net investment (gains) losses		(85)	(20)	(220)	(31)
Provision for income taxes		(102)	(222)	(348)	(355)
(Income) loss from continuing operations		(184)	347	(671)	(21)
Amount reclassified from accumulated other comprehensive income (loss) | Net unrealized investment (gains) losses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment (gains) losses	[1]	(29)	(13)	(118)	(95)
Provision for income taxes		10	4	41	33
(Income) loss from continuing operations		(19)	(9)	(77)	(62)
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Provision for income taxes		12	9	35	31
(Income) loss from continuing operations		(22)	(18)	(62)	(59)
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment income		(34)	(27)	(95)	(80)
Net investment (gains) losses		0	0	(2)	(1)
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Inflation indexed swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment income		0	0	0	(2)
Net investment (gains) losses		$ 0	$ 0	$ 0	$ (7)

[1] Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.

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Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Assets
Fixed maturity securities available-for-sale, at fair value	$ 62,552	$ 60,572
Equity securities available-for-sale, at fair value	765	632
Commercial mortgage loans	6,268	6,111
Restricted commercial mortgage loans related to securitization entities	111	129
Policy loans	1,818	1,742
Other invested assets	1,590	2,071
Restricted other invested assets related to securitization entities, at fair value	0	312
Investments in subsidiaries	0	0
Total investments	73,104	71,569
Cash and cash equivalents	2,836	2,784	$ 3,078	$ 5,993
Accrued investment income	639	659
Deferred acquisition costs	2,342	3,571	3,982
Intangible assets and goodwill	315	348
Reinsurance recoverable	17,553	17,755
Other assets	552	673
Intercompany notes receivable	0	0
Deferred tax assets	24	0
Separate account assets	7,264	7,299
Total assets	104,629	104,658
Liabilities and equity
Future policy benefits	38,022	37,063
Policyholder account balances	24,531	25,662
Liability for policy and contract claims	9,384	9,256	8,869	8,095
Unearned premiums	3,512	3,378
Other liabilities	2,002	2,916
Intercompany notes payable	0	0
Borrowings related to securitization entities	59	74
Non-recourse funding obligations	310	310
Long-term borrowings	4,224	4,180
Deferred tax liability	234	53
Separate account liabilities	7,264	7,299
Total liabilities	89,542	90,191
Equity:
Common stock	1	1
Additional paid-in capital	11,973	11,962
Accumulated other comprehensive income (loss)	3,035	3,094
Retained earnings	760	287
Treasury stock, at cost	(2,700)	(2,700)
Total Genworth Financial, Inc.'s stockholders' equity	13,069	12,644
Noncontrolling interests	2,018	1,823
Total equity	15,087	14,467	16,749	14,637
Total liabilities and equity	104,629	104,658
Reportable Legal Entities | Parent Guarantor
Assets
Fixed maturity securities available-for-sale, at fair value	0	0
Equity securities available-for-sale, at fair value	0	0
Commercial mortgage loans	0	0
Restricted commercial mortgage loans related to securitization entities	0	0
Policy loans	0	0
Other invested assets	0	0
Restricted other invested assets related to securitization entities, at fair value		0
Investments in subsidiaries	13,191	12,730
Total investments	13,191	12,730
Cash and cash equivalents	0	0	0	0
Accrued investment income	0	0
Deferred acquisition costs	0	0
Intangible assets and goodwill	0	0
Reinsurance recoverable	0	0
Other assets	0	9
Intercompany notes receivable	0	0
Deferred tax assets	0	28
Separate account assets	0	0
Total assets	13,191	12,767
Liabilities and equity
Future policy benefits	0	0
Policyholder account balances	0	0
Liability for policy and contract claims	0	0
Unearned premiums	0	0
Other liabilities	8	39
Intercompany notes payable	145	84
Borrowings related to securitization entities	0	0
Non-recourse funding obligations	0	0
Long-term borrowings	0	0
Deferred tax liability	(31)	0
Separate account liabilities	0	0
Total liabilities	122	123
Equity:
Common stock	1	1
Additional paid-in capital	11,973	11,962
Accumulated other comprehensive income (loss)	3,035	3,094
Retained earnings	760	287
Treasury stock, at cost	(2,700)	(2,700)
Total Genworth Financial, Inc.'s stockholders' equity	13,069	12,644
Noncontrolling interests	0	0
Total equity	13,069	12,644
Total liabilities and equity	13,191	12,767
Reportable Legal Entities | Issuer
Assets
Fixed maturity securities available-for-sale, at fair value	0	0
Equity securities available-for-sale, at fair value	0	0
Commercial mortgage loans	0	0
Restricted commercial mortgage loans related to securitization entities	0	0
Policy loans	0	0
Other invested assets	75	105
Restricted other invested assets related to securitization entities, at fair value		0
Investments in subsidiaries	12,459	12,308
Total investments	12,534	12,413
Cash and cash equivalents	754	998	1,065	1,124
Accrued investment income	0	0
Deferred acquisition costs	0	0
Intangible assets and goodwill	0	0
Reinsurance recoverable	0	0
Other assets	90	134
Intercompany notes receivable	161	84
Deferred tax assets	0	0
Separate account assets	0	0
Total assets	13,539	13,629
Liabilities and equity
Future policy benefits	0	0
Policyholder account balances	0	0
Liability for policy and contract claims	0	0
Unearned premiums	0	0
Other liabilities	163	301
Intercompany notes payable	232	267
Borrowings related to securitization entities	0	0
Non-recourse funding obligations	0	0
Long-term borrowings	3,722	3,716
Deferred tax liability	(862)	(816)
Separate account liabilities	0	0
Total liabilities	3,255	3,468
Equity:
Common stock	0	0
Additional paid-in capital	9,096	9,097
Accumulated other comprehensive income (loss)	3,040	3,135
Retained earnings	(1,852)	(2,071)
Treasury stock, at cost	0	0
Total Genworth Financial, Inc.'s stockholders' equity	10,284	10,161
Noncontrolling interests	0	0
Total equity	10,284	10,161
Total liabilities and equity	13,539	13,629
Reportable Legal Entities | All Other Subsidiaries
Assets
Fixed maturity securities available-for-sale, at fair value	62,752	60,772
Equity securities available-for-sale, at fair value	765	632
Commercial mortgage loans	6,268	6,111
Restricted commercial mortgage loans related to securitization entities	111	129
Policy loans	1,818	1,742
Other invested assets	1,517	1,966
Restricted other invested assets related to securitization entities, at fair value		312
Investments in subsidiaries	0	0
Total investments	73,231	71,664
Cash and cash equivalents	2,082	1,786	2,013	4,869
Accrued investment income	639	663
Deferred acquisition costs	2,342	3,571
Intangible assets and goodwill	315	348
Reinsurance recoverable	17,553	17,755
Other assets	470	530
Intercompany notes receivable	33	67
Deferred tax assets	24	(28)
Separate account assets	7,264	7,299
Total assets	103,953	103,655
Liabilities and equity
Future policy benefits	38,022	37,063
Policyholder account balances	24,531	25,662
Liability for policy and contract claims	9,384	9,256
Unearned premiums	3,512	3,378
Other liabilities	1,842	2,581
Intercompany notes payable	17	0
Borrowings related to securitization entities	59	74
Non-recourse funding obligations	310	310
Long-term borrowings	502	464
Deferred tax liability	1,127	869
Separate account liabilities	7,264	7,299
Total liabilities	86,570	86,956
Equity:
Common stock	3	0
Additional paid-in capital	18,381	20,252
Accumulated other comprehensive income (loss)	3,057	3,116
Retained earnings	(6,376)	(8,792)
Treasury stock, at cost	0	0
Total Genworth Financial, Inc.'s stockholders' equity	15,065	14,576
Noncontrolling interests	2,318	2,123
Total equity	17,383	16,699
Total liabilities and equity	103,953	103,655
Eliminations
Assets
Fixed maturity securities available-for-sale, at fair value	(200)	(200)
Equity securities available-for-sale, at fair value	0	0
Commercial mortgage loans	0	0
Restricted commercial mortgage loans related to securitization entities	0	0
Policy loans	0	0
Other invested assets	(2)	0
Restricted other invested assets related to securitization entities, at fair value		0
Investments in subsidiaries	(25,650)	(25,038)
Total investments	(25,852)	(25,238)
Cash and cash equivalents	0	0	$ 0	$ 0
Accrued investment income	0	(4)
Deferred acquisition costs	0	0
Intangible assets and goodwill	0	0
Reinsurance recoverable	0	0
Other assets	(8)	0
Intercompany notes receivable	(194)	(151)
Deferred tax assets	0	0
Separate account assets	0	0
Total assets	(26,054)	(25,393)
Liabilities and equity
Future policy benefits	0	0
Policyholder account balances	0	0
Liability for policy and contract claims	0	0
Unearned premiums	0	0
Other liabilities	(11)	(5)
Intercompany notes payable	(394)	(351)
Borrowings related to securitization entities	0	0
Non-recourse funding obligations	0	0
Long-term borrowings	0	0
Deferred tax liability	0	0
Separate account liabilities	0	0
Total liabilities	(405)	(356)
Equity:
Common stock	(3)	0
Additional paid-in capital	(27,477)	(29,349)
Accumulated other comprehensive income (loss)	(6,097)	(6,251)
Retained earnings	8,228	10,863
Treasury stock, at cost	0	0
Total Genworth Financial, Inc.'s stockholders' equity	(25,349)	(24,737)
Noncontrolling interests	(300)	(300)
Total equity	(25,649)	(25,037)
Total liabilities and equity	$ (26,054)	$ (25,393)

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Condensed Consolidating Income Statement (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Premiums	$ 1,135	$ 1,108	$ 3,382	$ 3,029
Net investment income	797	805	2,388	2,373
Net investment gains (losses)	85	20	220	31
Policy fees and other income	198	217	619	738
Total revenues	2,215	2,150	6,609	6,171
Benefits and expenses:
Benefits and other changes in policy reserves	1,344	1,662	3,796	3,715
Interest credited	164	173	494	523
Acquisition and operating expenses, net of deferrals	265	269	775	990
Amortization of deferred acquisition costs and intangibles	83	94	316	305
Interest expense	73	77	209	262
Total benefits and expenses	1,929	2,275	5,590	5,795
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries	286	(125)	1,019	376
Provision (benefit) for income taxes	102	222	348	355
Equity in income (loss) of subsidiaries	0	0	0	0
Income (loss) from continuing operations	184	(347)	671	21
Income (loss) from discontinued operations, net of taxes	(9)	15	(9)	(25)
Net income (loss)	175	(332)	662	(4)
Less: net income attributable to noncontrolling interests	68	48	198	151
Net income (loss) available to Genworth Financial, Inc.'s common stockholders	107	(380)	464	(155)
Reportable Legal Entities | Parent Guarantor
Revenues:
Premiums	0	0	0	0
Net investment income	(1)	(2)	(3)	(3)
Net investment gains (losses)	0	0	0	0
Policy fees and other income	0	0	0	0
Total revenues	(1)	(2)	(3)	(3)
Benefits and expenses:
Benefits and other changes in policy reserves	0	0	0	0
Interest credited	0	0	0	0
Acquisition and operating expenses, net of deferrals	20	13	48	118
Amortization of deferred acquisition costs and intangibles	0	0	0	0
Interest expense	0	0	0	1
Total benefits and expenses	20	13	48	119
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries	(21)	(15)	(51)	(122)
Provision (benefit) for income taxes	(5)	(4)	(9)	(31)
Equity in income (loss) of subsidiaries	123	(369)	506	(62)
Income (loss) from continuing operations	107	(380)	464	(153)
Income (loss) from discontinued operations, net of taxes	0	0	0	(2)
Net income (loss)	107	(380)	464	(155)
Less: net income attributable to noncontrolling interests	0	0	0	0
Net income (loss) available to Genworth Financial, Inc.'s common stockholders	107	(380)	464	(155)
Reportable Legal Entities | Issuer
Revenues:
Premiums	0	0	0	0
Net investment income	2	1	5	1
Net investment gains (losses)	(4)	(1)	(12)	(14)
Policy fees and other income	4	0	3	(6)
Total revenues	2	0	(4)	(19)
Benefits and expenses:
Benefits and other changes in policy reserves	0	0	0	0
Interest credited	0	0	0	0
Acquisition and operating expenses, net of deferrals	(2)	0	(2)	38
Amortization of deferred acquisition costs and intangibles	0	0	0	0
Interest expense	66	69	187	210
Total benefits and expenses	64	69	185	248
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries	(62)	(69)	(189)	(267)
Provision (benefit) for income taxes	(21)	155	(65)	88
Equity in income (loss) of subsidiaries	71	(207)	339	78
Income (loss) from continuing operations	30	(431)	215	(277)
Income (loss) from discontinued operations, net of taxes	4	11	4	(7)
Net income (loss)	34	(420)	219	(284)
Less: net income attributable to noncontrolling interests	0	0	0	0
Net income (loss) available to Genworth Financial, Inc.'s common stockholders	34	(420)	219	(284)
Reportable Legal Entities | All Other Subsidiaries
Revenues:
Premiums	1,135	1,108	3,382	3,029
Net investment income	800	810	2,397	2,386
Net investment gains (losses)	89	21	232	45
Policy fees and other income	195	217	617	745
Total revenues	2,219	2,156	6,628	6,205
Benefits and expenses:
Benefits and other changes in policy reserves	1,344	1,662	3,796	3,715
Interest credited	164	173	494	523
Acquisition and operating expenses, net of deferrals	247	256	729	834
Amortization of deferred acquisition costs and intangibles	83	94	316	305
Interest expense	12	12	34	63
Total benefits and expenses	1,850	2,197	5,369	5,440
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries	369	(41)	1,259	765
Provision (benefit) for income taxes	128	71	422	298
Equity in income (loss) of subsidiaries	0	0	0	0
Income (loss) from continuing operations	241	(112)	837	467
Income (loss) from discontinued operations, net of taxes	(13)	4	(13)	(16)
Net income (loss)	228	(108)	824	451
Less: net income attributable to noncontrolling interests	68	48	198	151
Net income (loss) available to Genworth Financial, Inc.'s common stockholders	160	(156)	626	300
Eliminations
Revenues:
Premiums	0	0	0	0
Net investment income	(4)	(4)	(11)	(11)
Net investment gains (losses)	0	0	0	0
Policy fees and other income	(1)	0	(1)	(1)
Total revenues	(5)	(4)	(12)	(12)
Benefits and expenses:
Benefits and other changes in policy reserves	0	0	0	0
Interest credited	0	0	0	0
Acquisition and operating expenses, net of deferrals	0	0	0	0
Amortization of deferred acquisition costs and intangibles	0	0	0	0
Interest expense	(5)	(4)	(12)	(12)
Total benefits and expenses	(5)	(4)	(12)	(12)
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries	0	0	0	0
Provision (benefit) for income taxes	0	0	0	0
Equity in income (loss) of subsidiaries	(194)	576	(845)	(16)
Income (loss) from continuing operations	(194)	576	(845)	(16)
Income (loss) from discontinued operations, net of taxes	0	0	0	0
Net income (loss)	(194)	576	(845)	(16)
Less: net income attributable to noncontrolling interests	0	0	0	0
Net income (loss) available to Genworth Financial, Inc.'s common stockholders	$ (194)	$ 576	$ (845)	$ (16)

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Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	$ 175	$ (332)	$ 662	$ (4)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired	(89)	72	(173)	1,624
Net unrealized gains (losses) on other-than-temporarily impaired securities	0	5	1	6
Derivatives qualifying as hedges	(12)	54	(33)	448
Foreign currency translation and other adjustments	81	(1)	261	223
Total other comprehensive income (loss)	(20)	130	56	2,301
Total comprehensive income (loss)	155	(202)	718	2,297
Less: comprehensive income attributable to noncontrolling interests	108	64	313	260
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders	47	(266)	405	2,037
Reportable Legal Entities | Parent Guarantor
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	107	(380)	464	(155)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired	(72)	66	(155)	1,600
Net unrealized gains (losses) on other-than-temporarily impaired securities		5	1	6
Derivatives qualifying as hedges	(12)	54	(33)	448
Foreign currency translation and other adjustments	24	(11)	128	138
Total other comprehensive income (loss)	(60)	114	(59)	2,192
Total comprehensive income (loss)	47	(266)	405	2,037
Less: comprehensive income attributable to noncontrolling interests	0	0	0	0
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders	47	(266)	405	2,037
Reportable Legal Entities | Issuer
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	34	(420)	219	(284)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired	(71)	63	(172)	1,555
Net unrealized gains (losses) on other-than-temporarily impaired securities		4	1	5
Derivatives qualifying as hedges	(12)	54	(33)	447
Foreign currency translation and other adjustments	12	(3)	109	65
Total other comprehensive income (loss)	(71)	118	(95)	2,072
Total comprehensive income (loss)	(37)	(302)	124	1,788
Less: comprehensive income attributable to noncontrolling interests	0	0	0	0
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders	(37)	(302)	124	1,788
Reportable Legal Entities | All Other Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	228	(108)	824	451
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired	(89)	73	(173)	1,625
Net unrealized gains (losses) on other-than-temporarily impaired securities		4	1	6
Derivatives qualifying as hedges	(12)	57	(32)	481
Foreign currency translation and other adjustments	80	0	260	224
Total other comprehensive income (loss)	(21)	134	56	2,336
Total comprehensive income (loss)	207	26	880	2,787
Less: comprehensive income attributable to noncontrolling interests	108	64	313	260
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders	99	(38)	567	2,527
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	(194)	576	(845)	(16)
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities not other-than-temporarily impaired	143	(130)	327	(3,156)
Net unrealized gains (losses) on other-than-temporarily impaired securities		(8)	(2)	(11)
Derivatives qualifying as hedges	24	(111)	65	(928)
Foreign currency translation and other adjustments	(35)	13	(236)	(204)
Total other comprehensive income (loss)	132	(236)	154	(4,299)
Total comprehensive income (loss)	(62)	340	(691)	(4,315)
Less: comprehensive income attributable to noncontrolling interests	0	0	0	0
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders	$ (62)	$ 340	$ (691)	$ (4,315)

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Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 175	$ (332)	$ 662	$ (4)
Less loss from discontinued operations, net of taxes	9	(15)	9	25
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in (income) loss from subsidiaries	0	0	0	0
Dividends from subsidiaries			0	0
(Gain) loss on sale of businesses			0	(26)
Amortization of fixed maturity securities discounts and premiums and limited partnerships			(107)	(112)
Net investment (gains) losses	(85)	(20)	(220)	(31)
Charges assessed to policyholders			(534)	(574)
Acquisition costs deferred			(67)	(124)
Amortization of deferred acquisition costs and intangibles			316	305
Deferred income taxes			234	173
Trading securities, held-for-sale investments and derivative instruments			716	759
Stock-based compensation expense			29	25
Change in certain assets and liabilities:
Accrued investment income and other assets			(21)	(258)
Insurance reserves			1,202	691
Current tax liabilities			(27)	44
Other liabilities, policy and contract claims and other policy-related balances			(260)	905
Net cash from operating activities			1,932	1,798
Cash flows used by investing activities:
Fixed maturity securities			3,396	2,646
Commercial mortgage loans			454	555
Restricted commercial mortgage loans related to securitization entities			18	27
Proceeds from sales of investments:
Fixed maturity and equity securities			3,269	4,064
Purchases and originations of investments:
Fixed maturity and equity securities			(6,709)	(8,758)
Commercial mortgage loans			(608)	(405)
Other invested assets, net			(521)	(138)
Policy loans, net			28	(80)
Intercompany notes receivable			0	0
Proceeds from sale of businesses, net of cash transferred			0	39
Net cash used by investing activities			(678)	(2,050)
Capital contributions to subsidiaries			0
Payments for business purchased, net of cash acquired			(5)	0
Cash flows used by financing activities:
Deposits to universal life and investment contracts			902	1,028
Withdrawals from universal life and investment contracts			(2,003)	(1,463)
Redemption of non-recourse funding obligations			0	(1,620)
Repayment and repurchase of long-term debt			0	(362)
Repayment of borrowings related to securitization entities			(16)	(37)
Return of capital to noncontrolling interests			0	(70)
Dividends paid to noncontrolling interests			(92)	(126)
Proceeds from intercompany notes payable			0	0
Other, net			(30)	(49)
Net cash used by financing activities			(1,270)	(2,699)
Repurchase of subsidiary shares			(31)	0
Effect of exchange rate changes on cash and cash equivalents			68	36
Net change in cash and cash equivalents			52	(2,915)
Cash and cash equivalents at beginning of period			2,784	5,993
Cash and cash equivalents at end of period	2,836	3,078	2,836	3,078
Reportable Legal Entities | Parent Guarantor
Cash flows from operating activities:
Net income (loss)	107	(380)	464	(155)
Less loss from discontinued operations, net of taxes	0	0	0	2
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in (income) loss from subsidiaries	(123)	369	(506)	62
Dividends from subsidiaries			0	0
(Gain) loss on sale of businesses				0
Amortization of fixed maturity securities discounts and premiums and limited partnerships			0	0
Net investment (gains) losses	0	0	0	0
Charges assessed to policyholders			0	0
Acquisition costs deferred			0	0
Amortization of deferred acquisition costs and intangibles			0	0
Deferred income taxes			6	8
Trading securities, held-for-sale investments and derivative instruments			0	0
Stock-based compensation expense			23	18
Change in certain assets and liabilities:
Accrued investment income and other assets			2	(3)
Insurance reserves			0	0
Current tax liabilities			(6)	11
Other liabilities, policy and contract claims and other policy-related balances			(29)	(1)
Net cash from operating activities			(46)	(58)
Cash flows used by investing activities:
Fixed maturity securities			0	0
Commercial mortgage loans			0	0
Restricted commercial mortgage loans related to securitization entities			0	0
Proceeds from sales of investments:
Fixed maturity and equity securities			0	0
Purchases and originations of investments:
Fixed maturity and equity securities			0	0
Commercial mortgage loans			0	0
Other invested assets, net			0	0
Policy loans, net			0	0
Intercompany notes receivable			0	0
Proceeds from sale of businesses, net of cash transferred				0
Net cash used by investing activities			(14)	0
Capital contributions to subsidiaries			(7)
Payments for business purchased, net of cash acquired			(7)
Cash flows used by financing activities:
Deposits to universal life and investment contracts			0	0
Withdrawals from universal life and investment contracts			0	0
Redemption of non-recourse funding obligations				0
Repayment and repurchase of long-term debt				0
Repayment of borrowings related to securitization entities			0	0
Return of capital to noncontrolling interests				0
Dividends paid to noncontrolling interests			0	0
Proceeds from intercompany notes payable			61	58
Other, net			(1)	0
Net cash used by financing activities			60	58
Repurchase of subsidiary shares			0
Effect of exchange rate changes on cash and cash equivalents			0	0
Net change in cash and cash equivalents			0	0
Cash and cash equivalents at beginning of period			0	0
Cash and cash equivalents at end of period	0	0	0	0
Reportable Legal Entities | Issuer
Cash flows from operating activities:
Net income (loss)	34	(420)	219	(284)
Less loss from discontinued operations, net of taxes	(4)	(11)	(4)	7
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in (income) loss from subsidiaries	(71)	207	(339)	(78)
Dividends from subsidiaries			119	250
(Gain) loss on sale of businesses				1
Amortization of fixed maturity securities discounts and premiums and limited partnerships			4	3
Net investment (gains) losses	4	1	12	14
Charges assessed to policyholders			0	0
Acquisition costs deferred			0	0
Amortization of deferred acquisition costs and intangibles			0	0
Deferred income taxes			(47)	304
Trading securities, held-for-sale investments and derivative instruments			(46)	5
Stock-based compensation expense			0	0
Change in certain assets and liabilities:
Accrued investment income and other assets			(2)	(4)
Insurance reserves			0	0
Current tax liabilities			(75)	(4)
Other liabilities, policy and contract claims and other policy-related balances			34	(22)
Net cash from operating activities			(125)	192
Cash flows used by investing activities:
Fixed maturity securities			0	150
Commercial mortgage loans			0	0
Restricted commercial mortgage loans related to securitization entities			0	0
Proceeds from sales of investments:
Fixed maturity and equity securities			0	0
Purchases and originations of investments:
Fixed maturity and equity securities			0	0
Commercial mortgage loans			0	0
Other invested assets, net			25	0
Policy loans, net			0	0
Intercompany notes receivable			(77)	(58)
Proceeds from sale of businesses, net of cash transferred				1
Net cash used by investing activities			(52)	93
Capital contributions to subsidiaries			0
Payments for business purchased, net of cash acquired			0
Cash flows used by financing activities:
Deposits to universal life and investment contracts			0	0
Withdrawals from universal life and investment contracts			0	0
Redemption of non-recourse funding obligations				0
Repayment and repurchase of long-term debt				(326)
Repayment of borrowings related to securitization entities			0	0
Return of capital to noncontrolling interests				0
Dividends paid to noncontrolling interests			0	0
Proceeds from intercompany notes payable			(35)	18
Other, net			(32)	(36)
Net cash used by financing activities			(67)	(344)
Repurchase of subsidiary shares			0
Effect of exchange rate changes on cash and cash equivalents			0	0
Net change in cash and cash equivalents			(244)	(59)
Cash and cash equivalents at beginning of period			998	1,124
Cash and cash equivalents at end of period	754	1,065	754	1,065
Reportable Legal Entities | All Other Subsidiaries
Cash flows from operating activities:
Net income (loss)	228	(108)	824	451
Less loss from discontinued operations, net of taxes	13	(4)	13	16
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in (income) loss from subsidiaries	0	0	0	0
Dividends from subsidiaries			(119)	(250)
(Gain) loss on sale of businesses				(27)
Amortization of fixed maturity securities discounts and premiums and limited partnerships			(111)	(115)
Net investment (gains) losses	(89)	(21)	(232)	(45)
Charges assessed to policyholders			(534)	(574)
Acquisition costs deferred			(67)	(124)
Amortization of deferred acquisition costs and intangibles			316	305
Deferred income taxes			275	(139)
Trading securities, held-for-sale investments and derivative instruments			762	754
Stock-based compensation expense			6	7
Change in certain assets and liabilities:
Accrued investment income and other assets			(25)	(246)
Insurance reserves			1,202	691
Current tax liabilities			54	37
Other liabilities, policy and contract claims and other policy-related balances			(259)	928
Net cash from operating activities			2,105	1,669
Cash flows used by investing activities:
Fixed maturity securities			3,396	2,496
Commercial mortgage loans			454	555
Restricted commercial mortgage loans related to securitization entities			18	27
Proceeds from sales of investments:
Fixed maturity and equity securities			3,269	4,064
Purchases and originations of investments:
Fixed maturity and equity securities			(6,709)	(8,758)
Commercial mortgage loans			(608)	(405)
Other invested assets, net			(548)	(143)
Policy loans, net			28	(80)
Intercompany notes receivable			34	(18)
Proceeds from sale of businesses, net of cash transferred				38
Net cash used by investing activities			(657)	(2,224)
Capital contributions to subsidiaries			7
Payments for business purchased, net of cash acquired			2
Cash flows used by financing activities:
Deposits to universal life and investment contracts			902	1,028
Withdrawals from universal life and investment contracts			(2,003)	(1,463)
Redemption of non-recourse funding obligations				(1,620)
Repayment and repurchase of long-term debt				(36)
Repayment of borrowings related to securitization entities			(16)	(37)
Return of capital to noncontrolling interests				(70)
Dividends paid to noncontrolling interests			(92)	(126)
Proceeds from intercompany notes payable			17	0
Other, net			3	(13)
Net cash used by financing activities			(1,220)	(2,337)
Repurchase of subsidiary shares			(31)
Effect of exchange rate changes on cash and cash equivalents			68	36
Net change in cash and cash equivalents			296	(2,856)
Cash and cash equivalents at beginning of period			1,786	4,869
Cash and cash equivalents at end of period	2,082	2,013	2,082	2,013
Eliminations
Cash flows from operating activities:
Net income (loss)	(194)	576	(845)	(16)
Less loss from discontinued operations, net of taxes	0	0	0	0
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in (income) loss from subsidiaries	194	(576)	845	16
Dividends from subsidiaries			0	0
(Gain) loss on sale of businesses				0
Amortization of fixed maturity securities discounts and premiums and limited partnerships			0	0
Net investment (gains) losses	0	0	0	0
Charges assessed to policyholders			0	0
Acquisition costs deferred			0	0
Amortization of deferred acquisition costs and intangibles			0	0
Deferred income taxes			0	0
Trading securities, held-for-sale investments and derivative instruments			0	0
Stock-based compensation expense			0	0
Change in certain assets and liabilities:
Accrued investment income and other assets			4	(5)
Insurance reserves			0	0
Current tax liabilities			0	0
Other liabilities, policy and contract claims and other policy-related balances			(6)	0
Net cash from operating activities			(2)	(5)
Cash flows used by investing activities:
Fixed maturity securities			0	0
Commercial mortgage loans			0	0
Restricted commercial mortgage loans related to securitization entities			0	0
Proceeds from sales of investments:
Fixed maturity and equity securities			0	0
Purchases and originations of investments:
Fixed maturity and equity securities			0	0
Commercial mortgage loans			0	0
Other invested assets, net			2	5
Policy loans, net			0	0
Intercompany notes receivable			43	76
Proceeds from sale of businesses, net of cash transferred				0
Net cash used by investing activities			45	81
Capital contributions to subsidiaries			0
Payments for business purchased, net of cash acquired			0
Cash flows used by financing activities:
Deposits to universal life and investment contracts			0	0
Withdrawals from universal life and investment contracts			0	0
Redemption of non-recourse funding obligations				0
Repayment and repurchase of long-term debt				0
Repayment of borrowings related to securitization entities			0	0
Return of capital to noncontrolling interests				0
Dividends paid to noncontrolling interests			0	0
Proceeds from intercompany notes payable			(43)	(76)
Other, net			0	0
Net cash used by financing activities			(43)	(76)
Repurchase of subsidiary shares			0
Effect of exchange rate changes on cash and cash equivalents			0	0
Net change in cash and cash equivalents			0	0
Cash and cash equivalents at beginning of period			0	0
Cash and cash equivalents at end of period	$ 0	$ 0	$ 0	$ 0

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Condensed Consolidating Financial Information - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Condensed Financial Statements, Captions [Line Items]
Amount of dividend our subsidiaries could pay in 2017 without obtaining regulatory approval		$ 220
Genworth Financial's Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Restricted net assets	$ 13,000
Genworth Holdings' Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Restricted net assets	$ 12,200