8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

November 2, 2021

Date of Report

(Date of earliest event reported)

GENWORTH FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-32195	80-0873306
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

6620 West Broad Street, Richmond, VA	23230
(Address of principal executive offices)	(Zip Code)

(804) 281-6000

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.  ☐

Item 2.02 Results of Operations and Financial Condition.

On November 2, 2021, Genworth Financial, Inc. (the “Company”) issued (1) a press release announcing its financial results for the quarter ended September 30, 2021, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (2) a financial supplement for the quarter ended September 30, 2021, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The information contained in this Current Report on Form 8-K (including the exhibits) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the company under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01 Financial Statements and Exhibits.

The following materials are furnished as exhibits to this Current Report on Form 8-K:

Exhibit Number	Description of Exhibit
99.1	Press Release dated November 2, 2021
99.2	Financial Supplement for the quarter ended September 30, 2021
104	Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document)

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 hereunto duly authorized.

	GENWORTH FINANCIAL, INC.
Date: November 2, 2021	By:	/s/ Matthew D. Farney
		Matthew D. Farney
		Vice President and Controller
		(Principal Accounting Officer)

EX-99.1

Exhibit 99.1

Genworth Financial Announces Third Quarter 2021 Results

Third Quarter Net Income of $314 Million and Adjusted Operating Income of $239 Million

• Successfully completed initial public offering (IPO) of Enact Holdings, Inc. (Enact)

• Enact adjusted operating income of $134 million, with 10 percent annual growth in primary insurance in force and a 14 percent loss ratio

• Enact’s PMIERs¹ sufficiency ratio estimated at 181 percent, $2,287 million above published requirements

• U.S. life insurance segment adjusted operating income of $93 million driven by long term care insurance (LTC) results benefitting from in force rate actions and net investment income

• Holding company cash and liquid assets of $638 million and $809 million of holding company debt retired

Richmond, VA (November 2, 2021) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended September 30, 2021. The company reported net income² of $314 million, or $0.61 per diluted share, in the third quarter of 2021, compared with net income of $418 million, or $0.82 per diluted share, in the third quarter of 2020. The company reported adjusted operating income³ of $239 million, or $0.46 per diluted share, in the third quarter of 2021, compared with adjusted operating income of $125 million, or $0.25 per diluted share, in the third quarter of 2020.

“Genworth delivered another quarter of strong results,” said Tom McInerney, Genworth President and CEO. “At the same time, we continued to execute against our strategic plan, including the successful completion of the Enact IPO which improved Genworth’s financial position and drove ratings improvements at both Enact and Genworth. With this critical step behind us, we have a clearer path to reduce holding company debt to a more sustainable level, which in turn will enable Genworth to pursue other strategic priorities that are aimed at creating both near-term and long-term shareholder value.”

¹  Private Mortgage Insurer Eligibility Requirements.

²  Unless otherwise stated, all references in this press release to net income (loss), net income (loss) per share, adjusted operating income (loss), adjusted operating income (loss) per share and book value per share should be read as net income (loss) available to Genworth’s common stockholders, net income (loss) available to Genworth’s common stockholders per diluted share, adjusted operating income (loss) available to Genworth’s common stockholders, adjusted operating income (loss) available to Genworth’s common stockholders per diluted share and book value available to Genworth’s common stockholders per share, respectively.

³  This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (Non-GAAP). See the Use of Non-GAAP Measures section of this press release for additional information.

1

Strategic Highlights

• Completed IPO of Enact with net proceeds of $529 million to Genworth, reducing ownership of Enact from 100 percent to 81.6 percent

• Received ratings upgrades from Moody’s Investors Service and S&P Global Ratings following the IPO, in recognition of improvement in Genworth Holdings, Inc.’s credit risk profile and increased financial flexibility

• Significantly reduced holding company debt, including the retirement of the AXA S.A. (AXA) promissory note ($296 million) and AXA’s corresponding release of the 19.9% of Enact common stock pledged as collateral for the note, as well as the redemption of the remaining principal amount of the September 2021 debt maturity ($513 million)

• Continued progress against LTC multi-year rate action plan, with $117 million in annual premium rate increases and benefit reductions approved in the third quarter of 2021, bringing total net present value from LTC rate actions to over $16.3 billion since 2012

Financial Performance

Consolidated Net Income & Adjusted Operating Income
	Three months ended September 30
	2021				2020
(Amounts in millions, except per share)	Total		Per diluted share		Total		Per diluted share		Total % change
Net income available to Genworth’s common stockholders	$	314	$	0.61	$	418	$	0.82		(25	)%
Adjusted operating income	$	239	$	0.46	$	125	$	0.25		91	%
Weighted-average diluted shares		514.2				511.5

	As of September 30
	2021			2020
Book value per share		$	30.11		$	29.19
Book value per share, excluding accumulated other comprehensive income (loss)		$	22.62		$	20.99

On September 16, 2021, the company completed the minority IPO of 18.4 percent of its U.S. mortgage insurance business, Enact, and as a result, net income attributable to noncontrolling interests in the Enact segment was $4 million in the current quarter. The company’s net income, before noncontrolling interests in the Enact segment, was $318 million in the third quarter of 2021. The company’s adjusted operating income, before noncontrolling interests in the Enact segment, for the third quarter of 2021 was $243 million.

Net investment gains, net of taxes and other adjustments, increased net income by $70 million in the current quarter. The investment gains were primarily driven by mark-to-market gains on limited partnership investments held in the LTC business. Net income in the third quarter of 2020 included $277 million of investment gains, net of taxes and other adjustments.

2

Net investment income was $859 million in the quarter, compared to $844 million in the prior quarter and $820 million in the prior year. Net investment income was higher than the prior quarter and prior year as a result of higher variable investment income, including income from limited partnerships, bond calls, commercial mortgage loan prepayments and the inflation impact on Treasury Inflation-Protected Securities (TIPS), primarily in the LTC business. The reported yield and the core yield³ for the quarter were 5.19 percent and 4.95 percent, respectively, compared to 5.11 percent and 4.85 percent, respectively, in the prior quarter.

Genworth’s effective tax rate on income from continuing operations for the current quarter was approximately 18 percent. The effective tax rate was favorably impacted by higher tax benefits from a reduction in uncertain tax positions due to the expiration of certain statute of limitations, partially offset by the tax effect of forward starting swap gains settled prior to the change in the corporate tax rate under the 2017 Tax Cuts and Jobs Act, which continue to be tax effected at 35 percent as they are amortized into net investment income.

The below table shows adjusted operating income (loss) by segment and for Corporate and Other activities:

Adjusted Operating Income (Loss) (Amounts in millions)	Q3 21		Q2 21			Q3 20
Enact	$	134	$	135		$	141
U.S. Life Insurance		93		71			14
Runoff		11		15			19
Corporate and Other		1		(27	)		(49	)
Total Adjusted Operating Income	$	239	$	194		$	125

Adjusted operating income (loss) represents income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and other adjustments, net of taxes. A reconciliation of net income to adjusted operating income is included at the end of this press release.

Enact

Operating Metrics (Dollar amounts in millions)	Q3 21			Q2 21			Q3 20
Adjusted operating income	$	134		$	135		$	141
Primary new insurance written	$	24,000		$	26,700		$	26,600
Loss ratio		14	%		12	%		18	%

Enact reported adjusted operating income of $134 million, compared with $135 million in the prior quarter and $141 million in the prior year. Enact’s primary insurance in force increased 10 percent versus the prior year from strong new insurance written (NIW), partially offset by low persistency. Primary NIW decreased 10 percent from the prior quarter and was also down 10 percent versus the prior year primarily from a smaller private mortgage insurance market. Earned premiums in the current quarter were flat compared to the prior quarter and lower than the prior year as insurance in force growth was offset by a decrease in single premium policy cancellations, the continued lapse of older, higher priced policies and higher ceded premiums. In addition, interest expense was higher in the current quarter versus the prior year from a full quarter’s interest expense on the August 2020 debt issuance.

3

Enact’s current quarter results reflected losses of $34 million and a loss ratio of 14 percent. Results in the prior quarter and prior year reflected losses of $30 million and $45 million, and a loss ratio of 12 percent and 18 percent, respectively. New delinquencies in the current quarter were 7,427, an increase of eight percent from 6,862 in the prior quarter driven by a seasonal increase. Current quarter new delinquencies decreased 55 percent from 16,664 in the prior year. Losses in the prior year were favorably impacted by incurred but not reported (IBNR) development of $23 million that did not recur. Despite the sequential increase in new delinquencies, the current quarter new delinquency rate of 0.8 percent remained consistent with pre-pandemic levels. Approximately 36 percent of new primary delinquencies in the current quarter were reported in forbearance plans which may cure at elevated rates.

U.S. Life Insurance

Adjusted Operating Income (Loss) (Amounts in millions)	Q3 21			Q2 21			Q3 20
Long Term Care Insurance	$	133		$	98		$	59
Life Insurance		(68	)		(40	)		(69	)
Fixed Annuities		28			13			24
Total U.S. Life Insurance	$	93		$	71		$	14

Long Term Care Insurance In Force Rate Action Performance (Amounts in millions)	Q3 21		Q2 21		Q3 20
Adjusted Operating Income from In Force Rate Actions4,5	$	304	$	310	$	238

Long Term Care Insurance

Long term care insurance reported adjusted operating income of $133 million, compared with $98 million in the prior quarter and $59 million in the prior year. Earnings from in force rate actions were more favorable than the prior year, driven primarily by higher benefit reductions, which included policyholder benefit reduction elections made as part of a legal settlement, net of litigation expenses and taxes. LTC results also reflected higher net investment income of $45 million after-tax versus the prior year and $7 million after-tax versus the prior quarter from limited partnerships, bond calls, commercial mortgage loan prepayments and gains on TIPS.

⁴  Excludes reserve updates resulting from profits followed by losses.

⁵  Includes estimated premium tax, commissions, and other expenses, net of tax of $(61) million, $(69) million and $(12) million in the third quarter 2021, second quarter 2021 and third quarter 2020, respectively. Also includes estimated impacts from a legal settlement, net of tax and litigation expenses, of $48 million and $71 million in the third quarter 2021 and second quarter 2021, respectively.

4

Claim and active policy terminations in the current quarter were higher compared to the prior quarter but lower compared to the prior year. Higher claim terminations in recent quarters were assumed to be driven by the COVID-19 pandemic and temporary in nature resulting in the establishment, beginning in the fourth quarter of 2020, of a temporary COVID-19 mortality adjustment assuming that the company’s mortality experience on the most vulnerable claimants was accelerated, leaving its overall claim population less likely to terminate compared to the pre-pandemic average population. In the current quarter, the company made minimal adjustments to this reserve, leaving a pre-tax balance of $142 million as of September 30, 2021. As the COVID-19 pandemic continues to develop, short-term mortality experience may fluctuate, and the company would increase or decrease the COVID-19 mortality adjustment accordingly.

New claim incidence increased versus the prior quarter but has remained lower than pre-pandemic levels. With the historically low new claim incidence, favorable development on IBNR claim reserves has continued, but to a lesser extent. Since the second quarter of 2020, IBNR has been strengthened to reflect the company’s assumption that incidence during the COVID-19 pandemic has been temporarily delayed. In the current quarter, given the increase in incidence, IBNR was reduced by $17 million after-tax, compared to a strengthening of $19 million after-tax in the prior year.

Life Insurance

Life insurance reported an adjusted operating loss of $68 million, compared with adjusted operating losses of $40 million in the prior quarter and $69 million in the prior year. Mortality, attributable in part to the COVID-19 pandemic, was higher compared to both the prior quarter and the prior year. Current quarter results also included a $30 million after-tax charge related to recoverability testing for deferred acquisition costs (DAC) in the company’s universal life insurance products versus a $13 million after-tax charge related to these products in the prior quarter. Results in the prior year reflected higher DAC amortization compared to the current year, as the large 20-year level-premium term life insurance block written at the end of 2000 entered its post-level premium period, as well as higher reserve increases during the premium grace period in the 10-year term universal life insurance block associated with policies entering the post-level premium period.

Fixed Annuities

Fixed annuities reported adjusted operating income of $28 million, compared with $13 million in the prior quarter and $24 million in the prior year. Results in the current quarter reflected a reduction in fixed indexed annuity reserves from higher interest rates. Mortality in the single premium immediate annuity product was favorable versus the prior quarter but unfavorable versus the prior year.

5

Runoff

Runoff reported adjusted operating income of $11 million, compared with $15 million in the prior quarter and $19 million in the prior year. Current quarter results in the variable annuity products were unfavorable compared to both the prior quarter and the prior year from equity market performance. Mortality experience in the corporate-owned life insurance business was also higher in the current quarter.

Corporate And Other

Corporate and Other reported adjusted operating income of $1 million, compared to adjusted operating losses of $27 million in the prior quarter and $49 million in the prior year. Results in the current quarter included tax benefits of $21 million from a reduction in uncertain tax positions due to the expiration of certain statute of limitations. Interest expense was also lower in the current quarter from the reduction of holding company debt.

Capital & Liquidity

Genworth maintains the following capital positions in its operating subsidiaries:

Key Capital & Liquidity Metrics (Dollar amounts in millions)	Q3 21			Q2 21			Q3 20
Enact
Consolidated Risk-To-Capital Ratio6		11.8:1			11.8:1			12.1:1
Genworth Mortgage Insurance Corporation Risk-To-Capital Ratio6		11.9:1			12.0:1			12.3:1
Private Mortgage Insurer Eligibility Requirements (PMIERs) Sufficiency Ratio6,7		181	%		165	%		132	%
U.S. Life Insurance Companies
Consolidated Risk-Based Capital (RBC) Ratio6		290	%		272	%		239	%
Holding Company Cash and Liquid Assets8,9	$	638		$	842		$	814

Key Points

• Enact’s PMIERs sufficiency ratio is estimated to be 181 percent, $2,287 million above published PMIERs requirements¹⁰. The PMIERs sufficiency ratio was up sixteen points, or $346 million, sequentially, driven in part by the completion of an insurance linked notes transaction, which added $372 million of additional PMIERs capital credit as of September 30, 2021, elevated lapse from prevailing low interest rates, business cash flows and lower delinquencies, partially offset by NIW and amortization of existing reinsurance transactions;

⁶  Company estimate for the third quarter of 2021 due to timing of the preparation and filing of statutory statements.

⁷  The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within the published PMIERs. As of September 30, 2021, June 30, 2021 and September 30, 2020, the PMIERs sufficiency ratios were $2,287 million, $1,941 million and $1,074 million, respectively, of available assets above the published PMIERs requirements.

⁸  Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc.

⁹  Genworth Holdings, Inc. had $588 million, $742 million and $814 million of cash, cash equivalents and restricted cash as of September 30, 2021, June 30, 2021 and September 30, 2020, respectively, which included $74 million of restricted cash and cash equivalents as of September 30, 2020. Genworth Holdings, Inc. also held $50 million and $100 million in U.S. government securities as of September 30, 2021 and June 30, 2021, respectively, which included $3 million and $19 million, respectively, of restricted assets.

¹⁰  The GSEs have imposed certain capital restrictions on the Enact business which remain in effect until certain conditions are met. These restrictions currently require Genworth Mortgage Insurance Corporation, the company’s principal U.S. mortgage insurance subsidiary, to maintain 115 percent of PMIERs minimum required assets among other restrictions.

6

• PMIERs sufficiency benefited from a 0.30 multiplier applied to the risk based required asset factor for certain non-performing loans, which resulted in a reduction of the published PMIERs required assets by an estimated $570 million at the end of the current quarter, compared to $760 million at the end of the prior quarter and $1,217 million at the end of the third quarter 2020. These amounts are gross of incremental reinsurance benefits from the elimination of the 0.30 multiplier;

• U.S. life insurance companies’ consolidated statutory risk-based capital is estimated to be 290 percent, up from the prior quarter primarily from LTC earnings driven by premium rate increases and benefit reductions, including the impacts from a legal settlement, favorable investment performance, and favorable claim and active policy terminations; and

• The holding company ended the quarter with $638 million of cash and liquid assets, including $3 million that is restricted. Cash sources in the quarter included $529 million of net proceeds from the execution of the minority IPO of Enact and cash tax inflows of $96 million from intercompany tax arrangements. During the current quarter, the company redeemed all of its remaining $513 million of outstanding principal due in September 2021 for approximately $532 million, which included the principal amount, a make-whole premium and accrued and unpaid interest. In addition, the AXA promissory note of $296 million was fully retired following the Enact IPO. The parent holding company public debt outstanding was $1.7 billion as of September 30, 2021.

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 provider of products, services and solutions that help families address the financial challenges of aging. Headquartered in Richmond, Virginia, Genworth applies its nearly 150 years of experience each day to helping people navigate caregiving options and fund their long term care needs. Genworth is also the parent company of publicly traded Enact (Nasdaq: ACT), a leading U.S. mortgage insurance provider. For more information on Genworth, visit genworth.com. From time to time Enact separately releases financial and other information about its operations. This information can be found at ir.enactmi.com.

From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the “Investors” section of genworth.com.

7

Conference Call And Financial Supplement Information

This press release and the third quarter 2021 financial supplement are now posted on the company’s website. Additional information regarding business results will be posted on the company’s website, http://investor.genworth.com, by 8:00 a.m. on November 3, 2021. Investors are encouraged to review these materials.

Genworth will conduct a conference call on November 3, 2021 at 9:00 a.m. (ET) to discuss the quarter’s results. Genworth’s conference call will be accessible via telephone and the Internet. The dial-in number for Genworth’s November 3^rd conference call is 888-208-1820 or 323-794-2110 (outside the U.S.); conference ID # 2955563. To participate in the call by webcast, register at http://investor.genworth.com at least 15 minutes prior to the webcast to download and install any necessary software.

A replay of the call will be available at 888-203-1112 or 719-457-0820 (outside the U.S.); conference ID # 2955563 through November 17, 2021. The webcast will also be archived on the company’s website for one year.

Prior to Genworth’s conference call, Enact will hold a conference call on November 3, 2021 at 8:00 a.m. (ET) to discuss its results from the third quarter. Enact’s conference call will be accessible via telephone and the Internet. Enact’s November 3^rd conference call is 833-730-3978 or 720-405-2123 (outside the U.S.); conference ID # 8756793. To participate in the call by webcast, register at http://ir.enactmi.com/news-and-events/events at least 15 minutes prior to the webcast to download and install any necessary software.

8

Use of Non-GAAP Measures

This press release includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), 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. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. 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) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company’s 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, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) 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) 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) have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) and adjusted operating income (loss) 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, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21 percent tax rate 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.

In the third quarter of 2021, the company paid a pre-tax make-whole premium of $6 million related to the early redemption of Genworth Holdings, Inc.’s senior notes originally scheduled to mature in September 2021. This transaction was excluded from adjusted operating income (loss) as it relates to gains (losses) on the early extinguishment of debt.

The company recorded a pre-tax expense of $3 million and $5 million in the third and second quarters of 2021, respectively, related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.

9

The tables at the end of this press release provide a reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income for the three months ended September 30, 2021 and 2020, as well as for the three months ended June 30, 2021, and reflect adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.

This press release includes the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP. In addition, the company’s definition of core yield may differ from the definitions used by other companies. A reconciliation of reported U.S. GAAP yield to core yield is included in a table at the end of this press release.

10

Definition of Selected Operating Performance Measures

The company taxes its businesses at the U.S. corporate federal income tax rate of 21 percent. Each segment is then adjusted to reflect the unique tax attributes of that segment such as permanent differences between U.S. GAAP and tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other 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 company reports 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 business generated in a period. Sales refer to new insurance written for mortgage insurance products included in the company’s Enact segment. The company considers new insurance written to be a measure of the company’s operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of the company’s revenues or profitability during that period.

Management regularly monitors and reports insurance in force and risk in force for the company’s Enact segment. Insurance in force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans the company insures. Risk in force is based on the coverage percentage applied to the estimated current outstanding loan balance. The company considers insurance in force and risk in force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.

Management also regularly monitors and reports a loss ratio for the company’s businesses. For the company’s Enact segment, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long term care insurance business included in the company’s U.S. Life Insurance segment, 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. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.

Management also regularly monitors and reports adjusted operating income from in force rate actions in the long term care insurance business included in the company’s U.S. Life Insurance segment. Adjusted operating income from in force rate actions includes premium rate increases and associated benefit reductions on its long term care insurance products implemented since 2012, which are net of estimated premium tax, commissions, and other expenses on an after-tax basis. Estimates for in force rate actions reflect certain simplifying assumptions that may vary materially from actual historical results, including but not limited to a uniform rate of coinsurance and premium taxes in addition to consistent policyholder behavior over time. Actual behavior may differ significantly from these assumptions. In addition, estimates exclude reserve updates resulting from profits followed by losses. The company considers adjusted operating income from in force rate actions to be a measure of its operating performance because it helps bring older generation long term care insurance blocks closer to a break-even point over time and helps bring the loss ratios on newer long term care insurance blocks back towards their original pricing.

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

11

Cautionary Note Regarding Forward-Looking Statements

This press release 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 the company’s future business and financial performance. Examples of forward-looking statements include statements the company makes relating to future reductions of debt, potential dividends or share repurchases, and future strategic investments, including a new long term care insurance joint venture, as well as statements the company makes regarding the potential impacts of the COVID-19 pandemic. 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:

• the company may be unable to successfully execute its strategic plans including: reducing the company’s debt maturities and other near-term liabilities and financial obligations, reducing costs, stabilizing its U.S. life insurance businesses without additional capital contributions, improving overall capital and ratings; establishing a new long term care insurance joint venture with a strategic partner; an inability to establish new long term care insurance business or product offerings due to commercial and/or regulatory challenges; the company’s inability to attract buyers for any businesses or other assets it may seek to sell, or securities it may seek to issue in each case, in a timely manner and on anticipated terms; an inability to increase the capital needed in the company’s businesses in a timely manner and on anticipated terms, including through improved business performance, reinsurance or similar transactions, asset sales, debt issuances, securities offerings or otherwise, in each case as and when required; the company’s challenges changing or being more costly or difficult to successfully address than currently anticipated or the benefits achieved being less than anticipated; an inability to achieve anticipated cost-savings in a timely manner; and adverse tax or accounting charges;

• risks relating to estimates, assumptions and valuations including: inadequate reserves and the need to increase reserves (including as a result of any changes the company may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews, including reviews we expect to complete and carry out in the fourth quarter of 2021); risks related to the impact of the company’s annual review of assumptions and methodologies related to its long term care insurance claim reserves and margin reviews in the fourth quarter of 2021, including risks that additional information obtained in finalizing our claim reserves and margin reviews in the fourth quarter of 2021 or other changes to assumptions or methodologies materially affect margins; or other changes to assumptions or methodologies materially affect margins; the inability to accurately estimate the impacts of the COVID-19 pandemic; inaccurate models; deviations from the company’s estimates and actuarial assumptions or other reasons in its 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 it may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews, including reviews we expect to complete and carry out in the fourth quarter of 2021); adverse impact on the company’s financial results as a result of projected profits followed by projected losses (as is currently the case with its long term care insurance business); and changes in valuation of fixed maturity and equity securities;

• liquidity, financial strength ratings, credit and counterparty risks including: the impact on holding company liquidity caused by the inability to receive dividends or other returns of capital from Enact Holdings, including as a result of the COVID-19 pandemic; continued availability of capital and financing; future adverse rating agency actions against the company or Enact Holdings, including with respect to rating downgrades or potential downgrades or being put on review for potential downgrade, all of which could have adverse implications, including with respect to key business relationships, product offerings, business results of operations, financial condition and capital needs, strategic plans, collateral obligations and availability and terms of hedging, reinsurance and borrowings; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other

12

events impacting the value of the company’s fixed maturity securities portfolio; defaults on the company’s commercial mortgage loans; defaults on mortgage loans or other assets underlying the company’s investments in its mortgage-backed and asset-backed securities and volatility in performance;

• risks relating to economic, market and political conditions including: downturns and volatility in global economies and equity and credit markets, including as a result of prolonged unemployment, inflation, supply chain disruptions, a sustained low interest rate environment and other displacements caused by the COVID-19 pandemic; interest rates and changes in rates have adversely impacted, and may continue to materially adversely impact, the company’s business and profitability; deterioration in economic conditions or a decline in home prices that adversely affect the company’s loss experience in the company’s Enact segment; 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 the company’s 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 Enact Holdings, and the inability of any subsidiaries to pay dividends or make other distributions to the company, including as a result of the performance of its subsidiaries, heightened regulatory restrictions resulting from the COVID-19 pandemic, and other insurance, regulatory or corporate law restrictions; the inability to successfully seek in force rate action increases (including increased premiums and associated benefit reductions) in the company’s long term care insurance business, including as a result of the COVID-19 pandemic; adverse change in regulatory requirements, including risk-based capital; inability to continue to maintain the private mortgage insurer eligibility requirements (PMIERs); risks on Enact Holdings’ ability to pay its holding company dividends as a result of the government-sponsored enterprises’ (GSEs) amendments to PMIERs in response to COVID-19 or additional PMIERs requirements or other restrictions that the GSEs may place on the ability of Enact Holdings to pay dividends to its holding company; the impact on capital levels of increased delinquencies caused by the COVID-19 pandemic; inability of the company’s U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements; the influence of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and a small number of large mortgage lenders in 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 the Enact segment; additional restrictions placed on the Enact segment by government and government-owned enterprises and the GSEs in connection with additional capital transactions; inability to continue to implement actions to mitigate the impact of statutory reserve requirements; changes in tax laws; and changes in accounting and reporting standards;

• operational risks including: the inability to retain, attract and motivate qualified employees or senior management; the impact on processes caused by shelter-in-place or other governmental restrictions imposed as a result of the COVID-19 pandemic; reliance on, and loss of, key customer or distribution relationships; the design and effectiveness of the company’s 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 the company’s computer systems, disaster recovery systems, business continuity plans and failures to safeguard or breaches of confidential information;

• insurance and product-related risks including: the company’s inability to increase premiums and reduce benefits sufficiently, and in a timely manner, on its in force long term care insurance policies, in each case, as currently anticipated and as may be required from time to time in the future (including as a result of a delay or failure to obtain any necessary regulatory approvals, including as a result of the COVID-19 pandemic, or unwillingness or inability of policyholders to pay increased premiums and/or accept reduced benefits), including to offset any negative impact on the company’s long term care insurance margins; availability, affordability and adequacy of reinsurance to protect the company against losses; decreases in the volume of 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 the company’s 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 the company;

13

• other risks including: the occurrence of natural or man-made disasters or a pandemic, similar to the COVID-19 pandemic, could materially adversely affect its financial condition and results of operations.

The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. This press release does not constitute an offering of any securities.

# # #

Contact Information:

Investors:	Tim Owens
	Tim.Owens@genworth.com
Media:	Amy Rein
	Amy.Rein@genworth.com

14

Condensed Consolidated Statements of Income

(Amounts in millions, except per share amounts)

(Unaudited)

	Three months ended				Three months ended
	September 30,				June 30,
	2021		2020		2021
Revenues:
Premiums	$	944	$	963	$	947
Net investment income		859		820		844
Net investment gains (losses)		88		351		70
Policy fees and other income		179		184		180
Total revenues		2,070		2,318		2,041
Benefits and expenses:
Benefits and other changes in policy reserves		1,143		1,273		1,161
Interest credited		123		137		127
Acquisition and operating expenses, net of deferrals		290		235		304
Amortization of deferred acquisition costs and intangibles		106		94		86
Interest expense		35		47		43
Total benefits and expenses		1,697		1,786		1,721
Income from continuing operations before income taxes		373		532		320
Provision for income taxes		67		130		75
Income from continuing operations		306		402		245
Income (loss) from discontinued operations, net of taxes		12		34		(5	)
Net income		318		436		240
Less: net income from continuing operations attributable to noncontrolling interests		4		—		—
Less: net income from discontinued operations attributable to noncontrolling interests		—		18		—
Net income available to Genworth Financial, Inc.’s common stockholders	$	314	$	418	$	240
Net income (loss) available to Genworth Financial, Inc.’s common stockholders:
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	302	$	402	$	245
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders		12		16		(5	)
Net income available to Genworth Financial, Inc.’s common stockholders	$	314	$	418	$	240
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.59	$	0.79	$	0.48
Diluted	$	0.59	$	0.79	$	0.47
Net income available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.62	$	0.83	$	0.47
Diluted	$	0.61	$	0.82	$	0.47
Weighted-average common shares outstanding:
Basic		507.4		505.6		507.0
Diluted		514.2		511.5		515.0

15

Reconciliation of Net Income to Adjusted Operating Income

(Amounts in millions, except per share amounts)

(Unaudited)

	Three months ended						Three months ended
	September 30,						June 30,
	2021			2020			2021
Net income available to Genworth Financial, Inc.’s common stockholders	$	314		$	418		$	240
Add: net income from continuing operations attributable to noncontrolling interests		4			—			—
Add: net income from discontinued operations attributable to noncontrolling interests		—			18			—
Net income		318			436			240
Less: income (loss) from discontinued operations, net of taxes		12			34			(5	)
Income from continuing operations		306			402			245
Less: net income from continuing operations attributable to noncontrolling interests		4			—			—
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders		302			402			245
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net11		(88	)		(350	)		(70	)
(Gains) losses on early extinguishment of debt		6			—			—
Expenses related to restructuring		3			—			5
Taxes on adjustments		16			73			14
Adjusted operating income	$	239		$	125		$	194
Adjusted operating income (loss):
Enact segment	$	134		$	141		$	135
U.S. Life Insurance segment:
Long Term Care Insurance		133			59			98
Life Insurance		(68	)		(69	)		(40	)
Fixed Annuities		28			24			13
Total U.S. Life Insurance segment		93			14			71
Runoff segment		11			19			15
Corporate and Other		1			(49	)		(27	)
Adjusted operating income	$	239		$	125		$	194
Net income available to Genworth Financial, Inc.’s common stockholders per share:
Basic	$	0.62		$	0.83		$	0.47
Diluted	$	0.61		$	0.82		$	0.47
Adjusted operating income per share:
Basic	$	0.47		$	0.25		$	0.38
Diluted	$	0.46		$	0.25		$	0.38
Weighted-average common shares outstanding:
Basic		507.4			505.6			507.0
Diluted		514.2			511.5			515.0

¹¹  For the three months ended September 30, 2020, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $1 million.

16

Reconciliation of Adjusted Operating Income Previously Reported to Adjusted Operating Income

Re-Presented to Exclude Discontinued Operations

(Amounts in millions)

	Three months ended September 30, 2020
Adjusted operating income as previously reported	$	132
Remove Australia Mortgage Insurance segment adjusted operating income reported as discontinued operations		(7	)
Adjustment for corporate overhead allocations, net of taxes12		(4	)
Tax adjustments13		4
Re-presented adjusted operating income	$	125

¹²  Expenses previously reported in the Australia Mortgage Insurance segment and moved to Corporate and Other activities.

¹³  Tax impacts resulting from the classification of Genworth Australia as discontinued operations.

17

Condensed Consolidated Balance Sheets

(Amounts in millions)

(Unaudited)

	September 30,			December 31,
	2021			2020
Assets
Cash, cash equivalents, restricted cash and invested assets	$	75,281		$	77,917
Deferred acquisition costs		1,193			1,487
Intangible assets		147			157
Reinsurance recoverable, net		16,671			16,819
Deferred tax and other assets		605			469
Separate account assets		5,978			6,081
Assets related to discontinued operations		—			2,817
Total assets	$	99,875		$	105,747
Liabilities and equity
Liabilities:
Future policy benefits	$	41,794		$	42,695
Policyholder account balances		19,607			21,503
Liability for policy and contract claims		11,743			11,486
Unearned premiums		685			775
Other liabilities		1,568			1,614
Long-term borrowings		2,412			3,403
Separate account liabilities		5,978			6,081
Liabilities related to discontinued operations		36			2,370
Total liabilities		83,823			89,927
Equity:
Common stock		1			1
Additional paid-in capital		11,850			12,008
Accumulated other comprehensive income (loss)		3,800			4,425
Retained earnings		2,325			1,584
Treasury stock, at cost		(2,700	)		(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		15,276			15,318
Noncontrolling interests		776			502
Total equity		16,052			15,820
Total liabilities and equity	$	99,875		$	105,747

18

Reconciliation of Reported Yield to Core Yield

	Three months ended
	September 30,			June 30,
(Assets - amounts in billions)	2021			2021
Reported Total Invested Assets and Cash	$	74.7		$	75.2
Subtract:
Securities lending		—			0.1
Unrealized gains (losses)		8.5			8.9
Adjusted End of Period Invested Assets and Cash	$	66.2		$	66.2
Average Invested Assets and Cash Used in Reported and Core Yield Calculation	$	66.2		$	66.1
(Income - amounts in millions)
Reported Net Investment Income	$	859		$	844
Subtract:
Bond calls and commercial mortgage loan prepayments		43			39
Other non-core items14		(4	)		3
Core Net Investment Income	$	820		$	802
Reported Yield		5.19	%		5.11	%
Core Yield		4.95	%		4.85	%

¹⁴  Includes cost basis adjustments on structured securities and various other immaterial items.

19

EX-99.2

Exhibit 99.2

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Table of Contents	Page
Investor Letter		3
Use of Non-GAAP Measures		4
Results of Operations and Selected Operating Performance Measures		5
Financial Highlights		6
Consolidated Quarterly Results
Consolidated Net Income (Loss) by Quarter		8
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)		9
Consolidated Balance Sheets		10-11
Consolidated Balance Sheets by Segment		12-13
Deferred Acquisition Costs (DAC) Rollforward		14
Quarterly Results by Business
Adjusted Operating Income (Loss) and Sales - Enact Segment		16-21
Adjusted Operating Income (Loss) - U.S. Life Insurance Segment		23-26
Adjusted Operating Income (Loss) - Runoff Segment		28
Adjusted Operating Income (Loss) - Corporate and Other Activities		30
Additional Financial Data
Investments Summary		32
Fixed Maturity Securities Summary		33
General Account U.S. GAAP Net Investment Income Yields		34
Net Investment Gains (Losses), Net - Detail		35
Reconciliations of Non-GAAP Measures
Reconciliation of Operating Return On Equity (ROE)		37
Reconciliation of Reported Yield to Core Yield		38
Corporate Information
Financial Strength Ratings		40

Note:

Unless otherwise stated, all references in this financial supplement to income (loss) from continuing operations, income (loss) from continuing operations per share, net income (loss), net income (loss) per share, adjusted operating income (loss), adjusted operating income (loss) per share, book value and book value per share should be read as income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders, income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share, net income (loss) available to Genworth Financial, Inc.’s common stockholders, net income (loss) available to Genworth Financial, Inc.’s common stockholders per share, non-U.S. Generally Accepted Accounting Principles (U.S. GAAP) adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, non-GAAP adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share, book value available to Genworth Financial, Inc.’s common stockholders and book value available to Genworth Financial, Inc.’s common stockholders per share, respectively.

2

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Dear Investor,

On September 20, 2021, the company completed a minority initial public offering of 18.4% of Enact Holdings, Inc. (Enact Holdings), an indirect subsidiary, and now reflects net income attributable to noncontrolling interests in its Enact segment (formerly known as the U.S. Mortgage Insurance segment). Differences in the results of operations between the company’s Enact segment included herein and the Enact Holdings standalone results are predominantly due to the allocation of corporate overhead expenses, tax differences and operating results of Enact Holdings’ mortgage insurance business in Mexico reported as Corporate and Other activities for Genworth Financial, Inc. but included in Enact Holdings’ standalone results.

On March 3, 2021, the company completed a sale of its entire ownership interest of approximately 52% in Genworth Mortgage Insurance Australia Limited (“Genworth Australia”) through an underwriting agreement. Genworth Australia, previously the primary business in the Australia Mortgage Insurance segment, is reported as discontinued operations for all periods presented. Accordingly, all prior periods reflected herein have been re-presented on this basis. The following table presents a reconciliation of adjusted operating income (loss) as previously reported to adjusted operating income (loss) re-presented to reflect the Australia mortgage insurance business as discontinued operations for the periods indicated:

(Amounts in millions)	2020
	4Q			3Q			2Q			1Q			Total
ADJUSTED OPERATING INCOME (LOSS) AS PREVIOUSLY REPORTED	$	173		$	132		$	(21	)	$	33		$	317
Remove Australia Mortgage Insurance segment adjusted operating (income) loss reported as discontinued operations		16			(7	)		(1	)		(9	)		(1	)
Adjustment for corporate overhead allocations, net of taxes(1)		(5	)		(4	)		(4	)		(4	)		(17	)
Tax adjustments(2)		4			4			3			—			11
RE-PRESENTED ADJUSTED OPERATING INCOME (LOSS)	$	188		$	125		$	(23	)	$	20		$	310

⁽¹⁾  Expenses previously reported in the Australia Mortgage Insurance segment and moved to Corporate and Other activities.

⁽²⁾  Tax impacts resulting from the classification of Genworth Australia as discontinued operations.

Thank you for your continued interest in Genworth Financial, Inc.

Regards,

Investor Relations

InvestorInfo@genworth.com

3

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Use of Non-GAAP Measures

This financial supplement includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), 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. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. 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) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company’s 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, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) 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) 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) have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) and adjusted operating income (loss) 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, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate 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 (see page 35).

In the third quarter of 2021, the company paid a pre-tax make-whole premium of $6 million related to the early redemption of Genworth Holdings, Inc.’s (Genworth Holdings) senior notes originally scheduled to mature in September 2021. In the first quarter of 2021, the company repurchased $146 million principal amount of Genworth Holdings’ senior notes due in September 2021 for a pre-tax loss of $4 million. During 2020, the company repurchased $84 million principal amount of Genworth Holdings’ senior notes with 2021 maturity dates for a pre-tax gain of $3 million and $1 million in the second and first quarters of 2020, respectively. In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, the company’s indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income (loss) as they relate to gains (losses) on the early extinguishment of debt.

The company recorded a pre-tax expense of $3 million, $5 million and $21 million in the third, second and first quarters of 2021, respectively, and $1 million in each of the fourth, second and first quarters of 2020 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.

The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. This financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 37 and 38 of this financial supplement.

4

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Results of Operations and Selected Operating Performance Measures

The company’s chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.

The company taxes its businesses at the U.S. corporate federal income tax rate of 21%. Each segment is then adjusted to reflect the unique tax attributes of that segment, such as permanent differences between U.S. GAAP and tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other 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.

This financial supplement 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 business generated in a period. Sales refer to new insurance written for mortgage insurance products included in the company’s Enact segment. The company considers new insurance written to be a measure of the company’s operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of the company’s revenues or profitability during that period.

Management regularly monitors and reports insurance in-force and risk in-force for the company’s Enact segment. Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans the company insures. Risk in-force is based on the coverage percentage applied to the estimated current outstanding loan balance. The company considers insurance in-force and risk in-force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.

Management also regularly monitors and reports a loss ratio for the company’s businesses. For the U.S. mortgage insurance business included in the company’s Enact segment, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long-term care insurance business included in the company’s U.S. Life Insurance segment, 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. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.

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

5

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Financial Highlights

(amounts in millions, except per share data)

Balance Sheet Data	September 30,         2021			June 30,         2021			March 31,         2021			December 31,         2020			September 30,         2020
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	11,476		$	11,330		$	11,083		$	10,893		$	10,615
Total accumulated other comprehensive income		3,800			3,834			3,675			4,425			4,141
Total Genworth Financial, Inc.’s stockholders’ equity	$	15,276		$	15,164		$	14,758		$	15,318		$	14,756
Book value per share	$	30.11		$	29.89		$	29.14		$	30.28		$	29.19
Book value per share, excluding accumulated other comprehensive income	$	22.62		$	22.33		$	21.88		$	21.54		$	20.99
Common shares outstanding as of the balance sheet date		507.4			507.4			506.5			505.8			505.6
	Twelve months ended
Twelve Month Rolling Average ROE	September 30, 2021			June 30,         2021			March 31,         2021			December 31, 2020			September 30, 2020
U.S. GAAP Basis ROE		9.1	%		10.3	%		4.0	%		1.7	%		(1.0	)%
Operating ROE(1)		7.1	%		6.2	%		4.3	%		2.9	%		1.2	%
	Three months ended
Quarterly Average ROE	September 30, 2021			June 30,         2021			March 31,         2021			December 31, 2020			September 30, 2020
U.S. GAAP Basis ROE		11.0	%		8.6	%		6.8	%		9.9	%		16.1	%
Operating ROE(1)		8.4	%		6.9	%		6.1	%		7.0	%		4.8	%

Basic and Diluted Shares	Three months ended September 30, 2021		Nine months ended September 30, 2021
Weighted-average common shares used in basic earnings per share calculations		507.4		506.8
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		6.8		7.6
Weighted-average common shares used in diluted earnings per share calculations		514.2		514.4

⁽¹⁾  See page 37 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.

6

Consolidated Quarterly Results

7

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)

	2021									2020
	3Q		2Q			1Q		Total		4Q			3Q		2Q			1Q			Total
REVENUES:
Premiums	$	944	$	947		$	968	$	2,859	$	970		$	963	$	957		$	946		$	3,836
Net investment income		859		844			801		2,504		846			820		779			782			3,227
Net investment gains (losses)		88		70			33		191		147			351		93			(99	)		492
Policy fees and other income		179		180			183		542		191			184		174			180			729
Total revenues		2,070		2,041			1,985		6,096		2,154			2,318		2,003			1,809			8,284
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,143		1,161			1,218		3,522		1,157			1,273		1,447			1,337			5,214
Interest credited		123		127			131		381		132			137		139			141			549
Acquisition and operating expenses, net of deferrals		290		304			275		869		253			235		210			237			935
Amortization of deferred acquisition costs and intangibles		106		86			77		269		174			94		87			108			463
Interest expense		35		43			51		129		55			47		42			51			195
Total benefits and expenses		1,697		1,721			1,752		5,170		1,771			1,786		1,925			1,874			7,356
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		373		320			233		926		383			532		78			(65	)		928
Provision (benefit) for income taxes		67		75			59		201		82			130		23			(5	)		230
INCOME (LOSS) FROM CONTINUING OPERATIONS		306		245			174		725		301			402		55			(60	)		698
Income (loss) from discontinued operations, net of taxes(1)		12		(5	)		21		28		(35	)		34		(473	)		(12	)		(486	)
NET INCOME (LOSS)		318		240			195		753		266			436		(418	)		(72	)		212
Less: net income from continuing operations attributable to noncontrolling interests		4		—			—		4		—			—		—			—			—
Less: net income (loss) from discontinued operations attributable to noncontrolling interests		—		—			8		8		(1	)		18		23			(6	)		34
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S
COMMON STOCKHOLDERS	$	314	$	240		$	187	$	741	$	267		$	418	$	(441	)	$	(66	)	$	178
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S
COMMON STOCKHOLDERS:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders	$	302	$	245		$	174	$	721	$	301		$	402	$	55		$	(60	)	$	698
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders		12		(5	)		13		20		(34	)		16		(496	)		(6	)		(520	)
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S
COMMON STOCKHOLDERS	$	314	$	240		$	187	$	741	$	267		$	418	$	(441	)	$	(66	)	$	178
Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	0.59	$	0.48		$	0.35	$	1.42	$	0.60		$	0.79	$	0.11		$	(0.12	)	$	1.38
Diluted	$	0.59	$	0.47		$	0.34	$	1.40	$	0.59		$	0.79	$	0.11		$	(0.12	)	$	1.36
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	0.62	$	0.47		$	0.37	$	1.46	$	0.53		$	0.83	$	(0.87	)	$	(0.13	)	$	0.35
Diluted	$	0.61	$	0.47		$	0.37	$	1.44	$	0.52		$	0.82	$	(0.86	)	$	(0.13	)	$	0.35
Weighted-average common shares outstanding
Basic		507.4		507.0			506.0		506.8		505.6			505.6		505.4			504.3			505.2
Diluted(2)		514.2		515.0			513.8		514.4		512.5			511.5		512.5			504.3			511.6

⁽¹⁾  Income (loss) from discontinued operations relates to the company’s former Australia mortgage insurance business that was sold on March 3, 2021 and its former lifestyle protection insurance business that was sold on December 1, 2015. Refer to page 30 for operating results of Genworth Australia reported as discontinued operations. In the first quarter of 2021, due to the sale of Genworth Australia, the company recorded an after-tax favorable adjustment of $11 million associated with a refinement to its tax matters agreement liability. During the third, second and first quarters of 2021 and the fourth, third and second quarters of 2020, the company recorded after-tax income (loss) of $9 million, $(4) million, $(1) million, $(30) million, $(22) million and $(520) million, respectively, related to a secured promissory note with AXA S.A. (AXA) resulting from a settlement agreement reached in 2020 regarding a dispute over payment protection insurance claims sold by the company’s former lifestyle protection insurance business. During the first quarter of 2021 and the third quarter of 2020, based on an updated estimate, the company adjusted a liability associated with underwriting losses on a product sold by a distributor in the company’s former lifestyle protection insurance business which resulted in an after-tax benefit (loss) of $(4) million and $23 million, respectively.

⁽²⁾  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 the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.

8

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss)

(amounts in millions, except per share amounts)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S
COMMON STOCKHOLDERS	$	314		$	240		$	187		$	741		$	267		$	418		$	(441	)	$	(66	)	$	178
Add: net income from continuing operations attributable to noncontrolling interests		4			—			—			4			—			—			—			—			—
Add: net income (loss) from discontinued operations attributable to noncontrolling interests		—			—			8			8			(1	)		18			23			(6	)		34
NET INCOME (LOSS)		318			240			195			753			266			436			(418	)		(72	)		212
Less: income (loss) from discontinued operations, net of taxes		12			(5	)		21			28			(35	)		34			(473	)		(12	)		(486	)
INCOME (LOSS) FROM CONTINUING OPERATIONS		306			245			174			725			301			402			55			(60	)		698
Less: net income from continuing operations attributable to noncontrolling interests		4			—			—			4			—			—			—			—			—
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		302			245			174			721			301			402			55			(60	)		698
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net(1)		(88	)		(70	)		(33	)		(191	)		(144	)		(350	)		(97	)		88			(503	)
(Gains) losses on early extinguishment of debt		6			—			4			10			—			—			(3	)		12			9
Expenses related to restructuring		3			5			21			29			1			—			1			1			3
Taxes on adjustments		16			14			2			32			30			73			21			(21	)		103
ADJUSTED OPERATING INCOME (LOSS)	$	239		$	194		$	168		$	601		$	188		$	125		$	(23	)	$	20		$	310
ADJUSTED OPERATING INCOME (LOSS):
Enact segment	$	134		$	135		$	126		$	395		$	95		$	141		$	(3	)	$	148		$	381
U.S. Life Insurance segment:
Long-Term Care Insurance		133			98			95			326			129			59			48			1			237
Life Insurance		(68	)		(40	)		(63	)		(171	)		(20	)		(69	)		(81	)		(77	)		(247	)
Fixed Annuities		28			13			30			71			20			24			28			6			78
Total U.S. Life Insurance segment		93			71			62			226			129			14			(5	)		(70	)		68
Runoff segment		11			15			12			38			13			19			24			(13	)		43
Corporate and Other		1			(27	)		(32	)		(58	)		(49	)		(49	)		(39	)		(45	)		(182	)
ADJUSTED OPERATING INCOME (LOSS)	$	239		$	194		$	168		$	601		$	188		$	125		$	(23	)	$	20		$	310
Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share
Basic	$	0.62		$	0.47		$	0.37		$	1.46		$	0.53		$	0.83		$	(0.87	)	$	(0.13	)	$	0.35
Diluted	$	0.61		$	0.47		$	0.37		$	1.44		$	0.52		$	0.82		$	(0.86	)	$	(0.13	)	$	0.35
Adjusted operating income (loss) per share
Basic	$	0.47		$	0.38		$	0.33		$	1.19		$	0.37		$	0.25		$	(0.05	)	$	0.04		$	0.61
Diluted	$	0.46		$	0.38		$	0.33		$	1.17		$	0.37		$	0.25		$	(0.05	)	$	0.04		$	0.61
Weighted-average common shares outstanding
Basic		507.4			507.0			506.0			506.8			505.6			505.6			505.4			504.3			505.2
Diluted(2)		514.2			515.0			513.8			514.4			512.5			511.5			512.5			504.3			511.6

⁽¹⁾ Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves (see page 35 for reconciliation).

⁽²⁾ 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 the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.

9

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Consolidated Balance Sheets

(amounts in millions)

	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value(1)	$	61,274		$	61,649		$	60,231		$	63,495		$	62,372
Equity securities, at fair value		156			147			238			386			575
Commercial mortgage loans(2)		6,916			6,912			6,787			6,774			6,911
Less: Allowance for credit losses		(30	)		(33	)		(32	)		(31	)		(31	)
Commercial mortgage loans, net		6,886			6,879			6,755			6,743			6,880
Policy loans		2,067			2,083			1,976			1,978			2,153
Other invested assets		2,335			2,260			1,759			2,099			2,171
Total investments		72,718			73,018			70,959			74,701			74,151
Cash, cash equivalents and restricted cash		1,937			2,214			1,964			2,561			2,740
Accrued investment income		626			573			704			655			635
Deferred acquisition costs		1,193			1,212			1,247			1,487			1,585
Intangible assets		147			151			155			157			165
Reinsurance recoverable		16,722			16,716			16,788			16,864			16,832
Less: Allowance for credit losses		(51	)		(50	)		(44	)		(45	)		(44	)
Reinsurance recoverable, net		16,671			16,666			16,744			16,819			16,788
Other assets		396			403			439			404			419
Deferred tax asset		209			211			314			65			201
Separate account assets		5,978			6,202			6,032			6,081			5,700
Assets related to discontinued operations(3)		—			—			—			2,817			2,541
Total assets	$	99,875		$	100,650		$	98,558		$	105,747		$	104,925
(1)  Amortized cost of $53,181 million, $53,111 million, $53,470 million, $53,417 million and $53,241 million as of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and allowance for credit losses of $—, $—, $3 million, $4 million and $5 million as of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively. (2)  Net of unamortized balance of loan origination fees and costs of $4 million as of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020. (3)  Prior to the sale on March 3, 2021, the assets of Genworth Australia were segregated in the consolidated balance sheets. The major asset categories of Genworth Australia reported as discontinued operations were as follows:
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	—		$	—		$	—		$	2,295		$	2,044
Equity securities, at fair value		—			—			—			90			54
Other invested assets		—			—			—			154			231
Total investments		—			—			—			2,539			2,329
Cash, cash equivalents and restricted cash		—			—			—			95			40
Accrued investment income		—			—			—			16			15
Deferred acquisition costs		—			—			—			42			38
Intangible assets		—			—			—			43			44
Other assets		—			—			—			40			26
Deferred tax asset		—			—			—			42			49
Assets related to discontinued operations	$	—		$	—		$	—		$	2,817		$	2,541

10

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Consolidated Balance Sheets

(amounts in millions)

	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	41,794		$	42,165		$	40,634		$	42,695		$	41,995
Policyholder account balances		19,607			19,944			19,999			21,503			22,731
Liability for policy and contract claims		11,743			11,546			11,415			11,486			11,135
Unearned premiums		685			695			728			775			794
Other liabilities		1,568			1,664			1,710			1,614			1,822
Long-term borrowings		2,412			2,924			2,922			3,403			3,401
Separate account liabilities		5,978			6,202			6,032			6,081			5,700
Liabilities related to discontinued operations(1)		36			346			360			2,370			2,115
Total liabilities		83,823			85,486			83,800			89,927			89,693
Equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,850			12,018			12,011			12,008			11,997
Accumulated other comprehensive income (loss)		3,800			3,834			3,675			4,425			4,141
Retained earnings		2,325			2,011			1,771			1,584			1,317
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		15,276			15,164			14,758			15,318			14,756
Noncontrolling interests		776			—			—			502			476
Total equity		16,052			15,164			14,758			15,820			15,232
Total liabilities and equity	$	99,875		$	100,650		$	98,558		$	105,747		$	104,925

⁽¹⁾  Liabilities related to discontinued operations relates to a liability recorded in connection with a settlement agreement reached with AXA involving the sale of the company’s former lifestyle protection insurance business. Liabilities related to discontinued operations also includes an unrelated liability associated with underwriting losses on a product sold by a distributor in the company’s former lifestyle protection insurance business. In addition, prior to the sale on March 3, 2021, the liabilities of Genworth Australia were segregated in the consolidated balance sheets. The major liability categories of Genworth Australia reported as discontinued operations were as follows:

	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020
LIABILITIES
Liability for policy and contract claims	$	—	$	—	$	—	$	331	$	238
Unearned premiums		—		—		—		1,193		1,052
Other liabilities		—		—		—		104		91
Long-term borrowings		—		—		—		145		169
Liabilities related to discontinued operations	$	—	$	—	$	—	$	1,773	$	1,550

11

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Consolidated Balance Sheet by Segment    

(amounts in millions)    

	September 30, 2021
	Enact		U.S. Life Insurance		Runoff		Corporate and Other(1)			Total
ASSETS
Cash and investments	$	5,871	$	64,627	$	2,616	$	2,167		$	75,281
Deferred acquisition costs and intangible assets		39		1,175		115		11			1,340
Reinsurance recoverable, net		—		16,017		654		—			16,671
Deferred tax and other assets		77		426		55		47			605
Separate account assets		—		—		5,978		—			5,978
Total assets	$	5,987	$	82,245	$	9,418	$	2,225		$	99,875
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	41,792	$	2	$	—		$	41,794
Policyholder account balances		—		16,603		3,004		—			19,607
Liability for policy and contract claims		648		11,065		20		10			11,743
Unearned premiums		255		427		3		—			685
Other liabilities		122		741		40		665			1,568
Borrowings		740		—		—		1,672			2,412
Separate account liabilities		—		—		5,978		—			5,978
Liabilities related to discontinued operations		—		—		—		36			36
Total liabilities		1,765		70,628		9,047		2,383			83,823
Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,337		7,907		365		(133	)		11,476
Allocated accumulated other comprehensive income (loss)		109		3,710		6		(25	)		3,800
Total Genworth Financial, Inc.’s stockholders’ equity		3,446		11,617		371		(158	)		15,276
Noncontrolling interests		776		—		—		—			776
Total equity		4,222		11,617		371		(158	)		16,052
Total liabilities and equity	$	5,987	$	82,245	$	9,418	$	2,225		$	99,875

⁽¹⁾  Includes inter-segment eliminations and other businesses that are managed outside the operating segments.

12

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Consolidated Balance Sheet by Segment

(amounts in millions)

	June 30, 2021
	Enact		U.S. Life Insurance		Runoff		Corporate and Other(1)			Total
ASSETS
Cash and investments	$	5,735	$	65,209	$	2,548	$	2,313		$	75,805
Deferred acquisition costs and intangible assets		40		1,195		117		11			1,363
Reinsurance recoverable, net		—		16,001		665		—			16,666
Deferred tax and other assets		70		117		61		366			614
Separate account assets		—		—		6,202		—			6,202
Total assets	$	5,845	$	82,522	$	9,593	$	2,690		$	100,650
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	42,163	$	2	$	—		$	42,165
Policyholder account balances		—		16,968		2,976		—			19,944
Liability for policy and contract claims		624		10,897		15		10			11,546
Unearned premiums		264		428		3		—			695
Other liabilities		107		770		43		744			1,664
Borrowings		739		—		—		2,185			2,924
Separate account liabilities		—		—		6,202		—			6,202
Liabilities related to discontinued operations		—		—		—		346			346
Total liabilities		1,734		71,226		9,241		3,285			85,486
Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,951		7,613		345		(579	)		11,330
Allocated accumulated other comprehensive income (loss)		160		3,683		7		(16	)		3,834
Total Genworth Financial, Inc.’s stockholders’ equity		4,111		11,296		352		(595	)		15,164
Noncontrolling interests		—		—		—		—			—
Total equity		4,111		11,296		352		(595	)		15,164
Total liabilities and equity	$	5,845	$	82,522	$	9,593	$	2,690		$	100,650

⁽¹⁾  Includes inter-segment eliminations and other businesses that are managed outside the operating segments.

13

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Deferred Acquisition Costs Rollforward

(amounts in millions)

	Enact			U.S. Life Insurance			Runoff			Total
Unamortized balance as of June 30, 2021	$	28		$	2,496		$	142		$	2,666
Costs deferred		3			—			—			3
Amortization, net of interest accretion		(3	)		(92	)		(6	)		(101	)
Unamortized balance as of September 30, 2021		28			2,404			136			2,568
Effect of accumulated net unrealized investment (gains) losses		—			(1,351	)		(24	)		(1,375	)
Balance as of September 30, 2021	$	28		$	1,053		$	112		$	1,193

14

Enact Segment

15

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Adjusted Operating Income (Loss) and Sales—Enact Segment

(amounts in millions)    

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q		Total
REVENUES:
Premiums	$	243		$	243		$	252		$	738		$	251		$	251		$	243		$	226	$	971
Net investment income		36			35			35			106			35			34			31			33		133
Net investment gains (losses)		1			(2	)		(1	)		(2	)		(1	)		(2	)		(1	)		—		(4	)
Policy fees and other income		1			—			2			3			2			1			1			2		6
Total revenues		281			276			288			845			287			284			274			261		1,106
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		34			30			55			119			89			45			228			19		381
Acquisition and operating expenses, net of deferrals		55			63			57			175			55			54			47			50		206
Amortization of deferred acquisition costs and intangibles		3			4			4			11			10			3			4			4		21
Interest expense		13			12			13			38			12			6			—			—		18
Total benefits and expenses		105			109			129			343			166			108			279			73		626
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		176			167			159			502			121			176			(5	)		188		480
Provision (benefit) for income taxes		38			35			34			107			26			37			(1	)		40		102
INCOME (LOSS) FROM CONTINUING OPERATIONS		138			132			125			395			95			139			(4	)		148		378
Less: net income from continuing operations attributable to noncontrolling interests		4			—			—			4			—			—			—			—		—
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		134			132			125			391			95			139			(4	)		148		378
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses		(1	)		2			1			2			1			2			1			—		4
Expenses related to restructuring		1			2			—			3			—			—			—			—		—
Taxes on adjustments		—			(1	)		—			(1	)		(1	)		—			—			—		(1	)
ADJUSTED OPERATING INCOME (LOSS)	$	134		$	135		$	126		$	395		$	95		$	141		$	(3	)	$	148	$	381
SALES:
Primary New Insurance Written (NIW)	$	24,000		$	26,700		$	24,900		$	75,600		$	27,000		$	26,600		$	28,400		$	17,900	$	99,900

16

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Primary New Insurance Written Metrics—Enact Segment

(amounts in millions)

						2021										2020
	3Q					2Q					1Q					4Q					3Q					2Q					1Q
	Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW			Primary NIW		% of Primary NIW
Product
Monthly	$	21,500		90	%	$	24,900		94	%	$	23,400		94	%	$	24,700		92	%	$	23,400		88	%	$	25,800		91	%	$	16,200		91	%
Single		2,400		10			1,700		6			1,400		6			2,200		8			3,100		12			2,500		9			1,500		8
Other(1)		100		—			100		—			100		—			100		—			100		—			100		—			200		1
Total Primary	$	24,000		100	%	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%
Origination
Purchase	$	21,000		88	%	$	21,100		79	%	$	15,500		62	%	$	17,800		66	%	$	20,000		75	%	$	17,400		61	%	$	12,000		67	%
Refinance		3,000		12			5,600		21			9,400		38			9,200		34			6,600		25			11,000		39			5,900		33
Total Primary	$	24,000		100	%	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%
FICO Scores
Over 760	$	10,700		45	%	$	11,800		44	%	$	10,500		42	%	$	10,500		39	%	$	11,300		43	%	$	12,300		43	%	$	7,500		42	%
740 - 759		3,800		16			4,000		15			3,800		15			4,300		16			4,100		15			4,800		17			3,200		18
720 - 739		3,200		13			3,500		13			3,400		14			4,000		15			3,500		13			4,200		15			2,600		14
700 - 719		2,700		11			3,100		12			3,000		12			3,600		13			3,100		12			3,300		11			2,200		12
680 - 699		1,900		8			2,500		9			2,500		10			2,700		10			2,400		9			2,200		8			1,500		8
660 - 679(2)		1,000		4			1,100		4			1,000		4			1,100		4			1,300		5			900		3			500		3
640 - 659		500		2			500		2			500		2			600		2			600		2			500		2			300		2
620 - 639		200		1			200		1			200		1			200		1			300		1			200		1			100		1
<620		—		—			—		—			—		—			—		—			—		—			—		—			—		—
Total Primary	$	24,000		100	%	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%
Loan-To-Value Ratio
95.01% and above	$	3,400		14	%	$	2,800		11	%	$	2,200		9	%	$	2,900		11	%	$	3,700		14	%	$	3,200		11	%	$	1,800		10	%
90.01% to 95.00%		8,800		37			10,700		40			9,500		38			11,100		41			11,700		44			12,300		43			7,700		43
85.01% to 90.00%		7,500		31			8,600		32			8,400		34			8,100		30			7,100		27			8,100		29			5,500		31
85.00% and below		4,300		18			4,600		17			4,800		19			4,900		18			4,100		15			4,800		17			2,900		16
Total Primary	$	24,000		100	%	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%
Debt-To-Income Ratio
45.01% and above	$	4,200		17	%	$	3,300		12	%	$	2,600		10	%	$	3,100		11	%	$	3,100		12	%	$	4,000		14	%	$	3,500		20	%
38.01% to 45.00%		7,900		33			9,200		35			8,700		35			10,200		38			9,900		37			9,600		34			6,000		33
38.00% and below		11,900		50			14,200		53			13,600		55			13,700		51			13,600		51			14,800		52			8,400		47
Total Primary	$	24,000		100	%	$	26,700		100	%	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%

⁽¹⁾ Includes loans with annual and split payment types.

⁽²⁾ Loans with unknown FICO scores are included in the 660-679 category.

17

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Other Metrics—Enact Segment

(dollar amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Primary Insurance In-Force(1)	$	222,500		$	217,500		$	210,200					$	207,900		$	203,100		$	197,000		$	188,000
Risk In-Force
Primary(2)	$	55,866		$	54,643		$	52,866					$	52,475		$	51,393		$	49,868		$	47,740
Pool		117			123			134						146			156			169			179
Total Risk In-Force	$	55,983		$	54,766		$	53,000					$	52,621		$	51,549		$	50,037		$	47,919
Expense Ratio (Net Earned Premiums)(3)		24	%		27	%		24	%		25	%		26	%		23	%		21	%		24	%		23	%
Primary Persistency		65	%		63	%		56	%		61	%		57	%		59	%		59	%		74	%		59	%
Combined Risk To Capital Ratio(4)		11.8:1			11.8:1			11.7:1						12.1:1			12.1:1			12.0:1			12.2:1
GMICO Risk To Capital Ratio(4),(5)		11.9:1			12.0:1			11.9:1						12.3:1			12.3:1			12.2:1			12.4:1
PMIERs Available Assets(6)	$	5,126		$	4,926		$	4,769					$	4,588		$	4,451		$	4,218		$	3,974
PMIERs Required Assets(6)	$	2,839		$	2,985		$	3,005					$	3,359		$	3,377		$	2,943		$	2,803
Available Assets Above PMIERs Requirements(6)	$	2,287		$	1,941		$	1,764					$	1,229		$	1,074		$	1,275		$	1,171
PMIERs Sufficiency Ratio(6)		181	%		165	%		159	%					137	%		132	%		143	%		142	%
Average Primary Loan Size (in thousands)	$	237		$	233		$	228					$	225		$	222		$	220		$	217

The expense ratio included above was calculated using whole dollars and may be different than the ratio calculated using the rounded numbers included herein.

⁽¹⁾ Primary insurance in-force represents aggregate unpaid balance for loans the company insures. Original loan balances are primarily used to determine premiums.

⁽²⁾ Primary risk in-force represents risk on current loan balances as provided by servicers, lenders and investors and conforms to the presentation under the Private Mortgage Insurer Eligibility Requirements (PMIERs).

⁽³⁾ The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by two percentage points for the three months ended June 30, 2021.

⁽⁴⁾ Certain states limit a private mortgage insurer’s risk in-force to 25 times the total of the insurer’s policyholders’ surplus plus the statutory contingency reserve, commonly known as the “risk to capital” requirement. The current period risk to capital ratio is an estimate due to the timing of the filing of statutory statements and is prepared consistent with the presentation of the statutory financial statements in the combined annual statement of the company’s U.S. mortgage insurance subsidiaries.

⁽⁵⁾ Genworth Mortgage Insurance Corporation (GMICO), the company’s principal U.S. mortgage insurance subsidiary.

⁽⁶⁾ The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. The current period PMIERs sufficiency ratio is an estimate due to the timing of the PMIERs filing and does not take into consideration the impact of restrictions recently imposed by the government-sponsored enterprises (GSEs). The GSEs have imposed certain capital restrictions on the company’s Enact segment which remain in effect until certain conditions are met. These restrictions currently require GMICO to maintain 115% of published PMIERs minimum required assets among other restrictions.

18

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Loss Metrics—Enact Segment

(amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Average Paid Claim (in thousands)(1)	$	26.7		$	63.1		$	54.7					$	47.2		$	55.6		$	47.1		$	45.0
Average Reserve Per Primary Delinquency (in thousands)(2)	$	21.2		$	17.5		$	13.6					$	11.5		$	8.8		$	7.1		$	13.1
Reserves:
Primary direct case	$	613		$	589		$	564					$	517		$	436		$	379		$	202
All other(3)		35			35			39						38			38			60			28
Total Reserves	$	648		$	624		$	603					$	555		$	474		$	439		$	230
Beginning Reserves	$	624		$	603		$	555		$	555		$	474		$	439		$	230		$	233		$	233
Paid claims		(10	)		(9	)		(7	)		(26	)		(8	)		(10	)		(19	)		(22	)		(59	)
Increase in reserves		34			30			55			119			89			45			228			19			381
Ending Reserves	$	648		$	624		$	603		$	648		$	555		$	474		$	439		$	230		$	555
Loss Ratio(4)		14	%		12	%		22	%		16	%		35	%		18	%		94	%		8	%		39	%

The loss ratio included above was calculated using whole dollars and may be different than the ratio calculated using the rounded numbers included herein.    

⁽¹⁾ Average paid claim in the third quarter of 2021 includes payment in relation to an agreement on non-performing loans.    

⁽²⁾ Primary direct case reserves divided by primary delinquency count.    

⁽³⁾ Other includes loss adjustment expenses, pool, incurred but not reported and reinsurance reserves.    

⁽⁴⁾ The ratio of benefits and other changes in policy reserves to net earned premiums.     

19

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Delinquency Metrics—Enact Segment

(dollar amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Primary Loans
Primary loans in-force		936,934			933,616			922,186						924,624			913,974			896,232			868,111
Primary delinquent loans		28,904			33,568			41,332						44,904			49,692			53,587			15,417
Primary delinquency rate		3.08	%		3.60	%		4.48	%					4.86	%		5.44	%		5.98	%		1.78	%
Beginning Number of Primary Delinquencies		33,568			41,332			44,904			44,904			49,692			53,587			15,417			16,392			16,392
New delinquencies		7,427			6,862			10,053			24,342			11,923			16,664			48,373			8,114			85,074
Delinquency cures		(11,746	)		(14,473	)		(13,478	)		(39,697	)		(16,548	)		(20,404	)		(9,795	)		(8,649	)		(55,396	)
Paid claims		(343	)		(143	)		(134	)		(620	)		(152	)		(152	)		(404	)		(440	)		(1,148	)
Rescissions and claim denials		(2	)		(10	)		(13	)		(25	)		(11	)		(3	)		(4	)		—			(18	)
Ending Number of Primary Delinquencies		28,904			33,568			41,332			28,904			44,904			49,692			53,587			15,417			44,904
Composition of Cures
Reported delinquent and cured-intraquarter		1,143			1,149			1,549						1,433			1,939			3,992			2,236
Number of missed payments delinquent prior to cure:
3 payments or less		3,080			4,179			4,812						5,567			13,022			4,522			4,850
4 - 11 payments		3,492			6,055			6,849						9,347			5,239			1,122			1,389
12 payments or more		4,031			3,090			268						201			204			159			174
Total		11,746			14,473			13,478						16,548			20,404			9,795			8,649
Primary Delinquencies by Missed Payment Status
3 payments or less		6,192			6,030			8,296						10,484			13,904			43,158			7,650
4 - 11 payments		9,021			12,378			21,011						30,324			32,366			7,448			4,909
12 payments or more		13,691			15,160			12,025						4,096			3,422			2,981			2,858
Primary Delinquencies		28,904			33,568			41,332						44,904			49,692			53,587			15,417
	September 30, 2021
Primary Direct Case Reserves(1) and Percentage Reserved by Payment Status	Direct Case Reserves			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default	$	32		$	320			10	%
4 - 11 payments in default		128			528			24	%
12 payments or more in default		453			813			56	%
Total	$	613		$	1,661			37	%
	December 31, 2020
Primary Direct Case Reserves(1) and Percentage Reserved by Payment Status	Direct Case Reserves			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default	$	43		$	549			8	%
4 - 11 payments in default		331			1,853			18	%
12 payments or more in default		143			204			70	%
Total	$	517		$	2,606			20	%

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

20

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Portfolio Quality Metrics—Enact Segment

(amounts in millions)

	September 30, 2021
Policy Year	Average Rate(1)			% of Direct Case Reserves(2)			Primary Insurance In-Force		% of Total			Primary Risk In-Force		% of Total			Delinquency Rate
2004 and prior		6.19	%		3	%	$	583		—	%	$	167		—	%		14.96	%
2005 to 2008		5.57	%		24			8,380		4			2,142		4			11.14	%
2009 to 2013		4.28	%		3			1,656		1			441		1			6.03	%
2014		4.49	%		3			2,293		1			621		1			5.81	%
2015		4.17	%		5			5,087		2			1,355		2			4.67	%
2016		3.89	%		8			10,082		4			2,676		5			4.31	%
2017		4.26	%		10			10,185		5			2,631		5			5.31	%
2018		4.78	%		13			10,568		5			2,656		5			6.51	%
2019		4.20	%		18			24,884		11			6,239		11			4.43	%
2020		3.24	%		12			75,785		34			18,965		34			1.43	%
2021		3.04	%		1			72,961		33			17,973		32			0.24	%
Total		3.57	%		100	%	$	222,464		100	%	$	55,866		100	%		3.08	%
	September 30, 2021						June 30, 2021					September 30, 2020
	Primary Risk In-Force			Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force
Loan-to-value ratio
95.01% and above	$	9,490			17	%	$	9,228		17	%	$	9,196		18	%
90.01% to 95.00%		27,509			49			27,308		50			26,403		51
85.01% to 90.00%		15,322			28			14,776		27			13,188		26
85.00% and below		3,545			6			3,331		6			2,606		5
Total	$	55,866			100	%	$	54,643		100	%	$	51,393		100	%
	September 30, 2021						June 30, 2021					September 30, 2020
	Primary Risk In-Force			Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force			Primary Risk In-Force		Percent of Primary Risk In-Force
Credit Quality
Over 760	$	21,767			39	%	$	20,908		38	%	$	19,549		38	%
740 - 759		8,824			16			8,628		16			8,424		16
720 - 739		7,966			14			7,879		14			7,489		15
700 - 719		6,923			12			6,848		13			6,288		12
680 - 699		5,383			10			5,385		10			4,864		9
660 - 679(3)		2,568			5			2,531		5			2,331		5
640 - 659		1,497			3			1,494		3			1,423		3
620 - 639		705			1			720		1			725		1
<620		233			—			250		—			300		1
Total	$	55,866			100	%	$	54,643		100	%	$	51,393		100	%

⁽¹⁾  Average annual mortgage interest rate weighted by insurance in-force.

⁽²⁾  Direct primary case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.

⁽³⁾  Loans with unknown FICO scores are included in the 660-679 category.

21

U.S. Life Insurance Segment

22

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Adjusted Operating Income (Loss)—U.S. Life Insurance Segment

(amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	699		$	703		$	714		$	2,116		$	717		$	711		$	712		$	718		$	2,858
Net investment income		773			763			716			2,252			765			726			692			695			2,878
Net investment gains (losses)		87			66			42			195			121			348			118			(70	)		517
Policy fees and other income		144			145			148			437			157			152			142			144			595
Total revenues		1,703			1,677			1,620			5,000			1,760			1,937			1,664			1,487			6,848
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,097			1,129			1,155			3,381			1,050			1,221			1,213			1,297			4,781
Interest credited		85			87			90			262			91			95			97			100			383
Acquisition and operating expenses, net of deferrals		211			219			192			622			164			158			147			151			620
Amortization of deferred acquisition costs and intangibles		96			77			68			241			161			87			83			87			418
Interest expense		—			—			—			—			—			—			—			5			5
Total benefits and expenses		1,489			1,512			1,505			4,506			1,466			1,561			1,540			1,640			6,207
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		214			165			115			494			294			376			124			(153	)		641
Provision (benefit) for income taxes		53			42			32			127			70			87			33			(27	)		163
INCOME (LOSS) FROM CONTINUING OPERATIONS		161			123			83			367			224			289			91			(126	)		478
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net(1)		(87	)		(67	)		(41	)		(195	)		(123	)		(348	)		(121	)		67			(525	)
Losses on early extinguishment of debt		—			—			—			—			—			—			—			4			4
Expenses related to restructuring		1			2			14			17			1			—			—			—			1
Taxes on adjustments		18			13			6			37			27			73			25			(15	)		110
ADJUSTED OPERATING INCOME (LOSS)	$	93		$	71		$	62		$	226		$	129		$	14		$	(5	)	$	(70	)	$	68
(1)  Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	(87	)	$	(66	)	$	(42	)	$	(195	)	$	(121	)	$	(348	)	$	(118	)	$	70		$	(517	)
Adjustment for DAC and other intangible amortization and certain benefit reserves		—			(1	)		1			—			(2	)		—			(3	)		(3	)		(8	)
Net investment (gains) losses, net	$	(87	)	$	(67	)	$	(41	)	$	(195	)	$	(123	)	$	(348	)	$	(121	)	$	67		$	(525	)

23

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Adjusted Operating Income—U.S. Life Insurance Segment—Long-Term Care Insurance

(amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	652		$	648		$	646		$	1,946		$	668		$	661		$	649		$	642		$	2,620
Net investment income		521			509			465			1,495			499			456			422			419			1,796
Net investment gains (losses)		80			67			27			174			118			347			129			(55	)		539
Policy fees and other income		3			2			2			7			3			2			—			—			5
Total revenues		1,256			1,226			1,140			3,622			1,288			1,466			1,200			1,006			4,960
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		802			822			829			2,453			863			901			876			928			3,568
Interest credited		—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		165			176			141			482			114			108			103			101			426
Amortization of deferred acquisition costs and intangibles		31			27			24			82			21			25			21			24			91
Interest expense		—			—			—			—			—			—			—			—			—
Total benefits and expenses		998			1,025			994			3,017			998			1,034			1,000			1,053			4,085
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		258			201			146			605			290			432			200			(47	)		875
Provision (benefit) for income taxes		63			50			38			151			69			99			49			(4	)		213
INCOME (LOSS) FROM CONTINUING OPERATIONS		195			151			108			454			221			333			151			(43	)		662
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(80	)		(67	)		(27	)		(174	)		(118	)		(347	)		(129	)		55			(539	)
Expenses related to restructuring		1			1			10			12			1			—			—			—			1
Taxes on adjustments		17			13			4			34			25			73			26			(11	)		113
ADJUSTED OPERATING INCOME	$	133		$	98		$	95		$	326		$	129		$	59		$	48		$	1		$	237
RATIOS:
Loss Ratio(1)		58	%		62	%		62	%		61	%		65	%		71	%		69	%		78	%		71	%
Gross Benefits Ratio(2)		123	%		127	%		128	%		126	%		129	%		136	%		135	%		145	%		136	%

⁽¹⁾  The loss ratio was calculated by dividing benefits and other changes in policy reserves less tabular interest on reserves less loss adjustment expenses by net earned premiums.

⁽²⁾  The gross benefits ratio was calculated by dividing benefits and other changes in policy reserves by net earned premiums.

24

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Adjusted Operating Loss—U.S. Life Insurance Segment—Life Insurance

(amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	47		$	55		$	68		$	170		$	49		$	50		$	63		$	76		$	238
Net investment income		128			126			125			379			131			131			127			130			519
Net investment gains (losses)		6			6			12			24			10			4			5			1			20
Policy fees and other income		139			142			143			424			151			148			140			141			580
Total revenues		320			329			348			997			341			333			335			348			1,357
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		252			245			282			779			131			269			289			302			991
Interest credited		53			53			56			162			55			57			57			59			228
Acquisition and operating expenses, net of deferrals		36			34			40			110			38			39			34			39			150
Amortization of deferred acquisition costs and intangibles		59			43			41			143			133			52			53			44			282
Interest expense		—			—			—			—			—			—			—			5			5
Total benefits and expenses		400			375			419			1,194			357			417			433			449			1,656
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(80	)		(46	)		(71	)		(197	)		(16	)		(84	)		(98	)		(101	)		(299	)
Benefit for income taxes		(17	)		(10	)		(15	)		(42	)		(3	)		(18	)		(21	)		(22	)		(64	)
LOSS FROM CONTINUING OPERATIONS		(63	)		(36	)		(56	)		(155	)		(13	)		(66	)		(77	)		(79	)		(235	)
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(6	)		(6	)		(12	)		(24	)		(10	)		(4	)		(5	)		(1	)		(20	)
Losses on early extinguishment of debt		—			—			—			—			—			—			—			4			4
Expenses related to restructuring		—			1			3			4			—			—			—			—			—
Taxes on adjustments		1			1			2			4			3			1			1			(1	)		4
ADJUSTED OPERATING LOSS	$	(68	)	$	(40	)	$	(63	)	$	(171	)	$	(20	)	$	(69	)	$	(81	)	$	(77	)	$	(247	)

25

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Adjusted Operating Income—U.S. Life Insurance Segment—Fixed Annuities

(amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		124			128			126			378			135			139			143			146			563
Net investment gains (losses)		1			(7	)		3			(3	)		(7	)		(3	)		(16	)		(16	)		(42	)
Policy fees and other income		2			1			3			6			3			2			2			3			10
Total revenues		127			122			132			381			131			138			129			133			531
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		43			62			44			149			56			51			48			67			222
Interest credited		32			34			34			100			36			38			40			41			155
Acquisition and operating expenses, net of deferrals		10			9			11			30			12			11			10			11			44
Amortization of deferred acquisition costs and intangibles		6			7			3			16			7			10			9			19			45
Interest expense		—			—			—			—			—			—			—			—			—
Total benefits and expenses		91			112			92			295			111			110			107			138			466
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		36			10			40			86			20			28			22			(5	)		65
Provision (benefit) for income taxes		7			2			9			18			4			6			5			(1	)		14
INCOME (LOSS) FROM CONTINUING OPERATIONS		29			8			31			68			16			22			17			(4	)		51
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net(1)		(1	)		6			(2	)		3			5			3			13			13			34
Expenses related to restructuring		—			—			1			1			—			—			—			—			—
Taxes on adjustments		—			(1	)		—			(1	)		(1	)		(1	)		(2	)		(3	)		(7	)
ADJUSTED OPERATING INCOME	$	28		$	13		$	30		$	71		$	20		$	24		$	28		$	6		$	78
(1)  Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	(1	)	$	7		$	(3	)	$	3		$	7		$	3		$	16		$	16		$	42
Adjustment for DAC and other intangible amortization and certain benefit reserves		—			(1	)		1			—			(2	)		—			(3	)		(3	)		(8	)
Net investment (gains) losses, net	$	(1	)	$	6		$	(2	)	$	3		$	5		$	3		$	13		$	13		$	34

26

Runoff Segment

27

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Adjusted Operating Income (Loss)—Runoff Segment

(amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Net investment income	$	49		$	43		$	49		$	141		$	52		$	55		$	54		$	49		$	210
Net investment gains (losses)		(1	)		10			(6	)		3			30			15			4			(75	)		(26	)
Policy fees and other income		33			35			33			101			32			33			32			33			130
Total revenues		81			88			76			245			114			103			90			7			314
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		12			2			8			22			17			7			4			20			48
Interest credited		38			40			41			119			41			42			42			41			166
Acquisition and operating expenses, net of deferrals		12			14			13			39			12			12			11			13			48
Amortization of deferred acquisition costs and intangibles		7			4			5			16			3			4			(1	)		17			23
Total benefits and expenses		69			60			67			196			73			65			56			91			285
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		12			28			9			49			41			38			34			(84	)		29
Provision (benefit) for income taxes		2			6			1			9			8			8			6			(18	)		4
INCOME (LOSS) FROM CONTINUING OPERATIONS		10			22			8			40			33			30			28			(66	)		25
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net(1)		1			(9	)		5			(3	)		(25	)		(14	)		(5	)		67			23
Taxes on adjustments		—			2			(1	)		1			5			3			1			(14	)		(5	)
ADJUSTED OPERATING INCOME (LOSS)	$	11		$	15		$	12		$	38		$	13		$	19		$	24		$	(13	)	$	43
(1)  Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	1		$	(10	)	$	6		$	(3	)	$	(30	)	$	(15	)	$	(4	)	$	75		$	26
Adjustment for DAC and other intangible amortization and certain benefit reserves		—			1			(1	)		—			5			1			(1	)		(8	)		(3	)
Net investment (gains) losses, net	$	1		$	(9	)	$	5		$	(3	)	$	(25	)	$	(14	)	$	(5	)	$	67		$	23

28

Corporate and Other

29

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Adjusted Operating Income (Loss)—Corporate and Other^(1),(2)

(amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	2		$	1		$	2		$	5		$	2		$	1		$	2		$	2		$	7
Net investment income		1			3			1			5			(6	)		5			2			5			6
Net investment gains (losses)		1			(4	)		(2	)		(5	)		(3	)		(10	)		(28	)		46			5
Policy fees and other income		1			—			—			1			—			(2	)		(1	)		1			(2	)
Total revenues		5			—			1			6			(7	)		(6	)		(25	)		54			16
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			—			—			—			1			—			2			1			4
Acquisition and operating expenses, net of deferrals		12			8			13			33			22			11			5			23			61
Amortization of deferred acquisition costs and intangibles		—			1			—			1			—			—			1			—			1
Interest expense		22			31			38			91			43			41			42			46			172
Total benefits and expenses		34			40			51			125			66			52			50			70			238
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(29	)		(40	)		(50	)		(119	)		(73	)		(58	)		(75	)		(16	)		(222	)
Benefit for income taxes		(26	)		(8	)		(8	)		(42	)		(22	)		(2	)		(15	)		—			(39	)
LOSS FROM CONTINUING OPERATIONS		(3	)		(32	)		(42	)		(77	)		(51	)		(56	)		(60	)		(16	)		(183	)
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(1	)		4			2			5			3			10			28			(46	)		(5	)
(Gains) losses on early extinguishment of debt		6			—			4			10			—			—			(3	)		8			5
Expenses related to restructuring		1			1			7			9			—			—			1			1			2
Taxes on adjustments		(2	)		—			(3	)		(5	)		(1	)		(3	)		(5	)		8			(1	)
ADJUSTED OPERATING INCOME (LOSS)	$	1		$	(27)		$	(32)		$	(58)		$	(49)		$	(49)		$	(39)		$	(45)		$	(182)
(1)  Includes inter-segment eliminations and the results of other businesses that are managed outside the operating segments, including certain international mortgage insurance businesses. (2)  Income (loss) from discontinued operations is considered part of Corporate and Other activities but is excluded from the above table. Income (loss) from discontinued operations on pages 8 and 9 herein include operating results of Genworth Australia that was sold on March 3, 2021 and amounts related to the company’s former lifestyle protection insurance business that was sold on December 1, 2015. In the third quarter of 2021, the company refined its original after-tax loss on sale of Genworth Australia by recording a favorable provision to return tax adjustment of $3 million. Operating results of Genworth Australia reported as discontinued operations were as follows:
	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	51		$	51		$	72		$	71		$	62		$	69		$	274
Net investment income		—			—			4			4			8			7			7			11			33
Net investment gains (losses)		—			—			(5	)		(5	)		29			24			66			(53	)		66
Policy fees and other income		—			—			—			—			—			—			—			1			1
Total revenues		—			—			50			50			109			102			135			28			374
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			—			11			11			88			26			39			24			177
Acquisition and operating expenses, net of deferrals		—			—			7			7			14			14			13			12			53
Amortization of deferred acquisition costs and intangibles		—			—			6			6			8			7			6			8			29
Goodwill impairment		—			—			—			—			—			—			5			—			5
Interest expense		—			—			1			1			2			2			2			1			7
Total benefits and expenses		—			—			25			25			112			49			65			45			271
INCOME (LOSS) BEFORE INCOME TAXES AND GAIN (LOSS) ON SALE		—			—			25			25			(3	)		53			70			(17	)		103
Provision (benefit) for income taxes		—			—			8			8			2			20			23			(5	)		40
INCOME (LOSS) BEFORE GAIN (LOSS) ON SALE		—			—			17			17			(5	)		33			47			(12	)		63
Gain (loss) on sale, net of taxes		3			—			(3	)		—			—			—			—			—			—
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES		3			—			14			17			(5	)		33			47			(12	)		63
Less: net income (loss) from discontinued operations attributable to noncontrolling interests		—			—			8			8			(1	)		18			23			(6	)		34
INCOME (LOSS) FROM DISCONTINUED OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	3		$	—		$	6		$	9		$	(4)		$	15		$	24		$	(6)		$	29

30

Additional Financial Data

31

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Investments Summary

(amounts in millions)

		September 30, 2021					June 30, 2021					March 31, 2021					December 31, 2020					September 30, 2020
		Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total
Composition of Investment Portfolio
Fixed maturity securities:
Investment grade:
Public fixed maturity securities		$	34,382		46	%	$	34,610		47	%	$	33,376		47	%	$	35,678		46	%	$	34,742		45	%
Private fixed maturity securities			13,742		18			13,722		18			13,402		18			13,734		18			13,522		17
Residential mortgage-backed securities(1)			1,572		2			1,683		2			1,766		2			1,900		2			2,042		3
Commercial mortgage-backed securities			2,656		4			2,714		4			2,770		4			2,955		4			2,957		4
Other asset-backed securities			2,374		3			2,500		3			2,806		4			3,076		4			3,028		4
State and political subdivisions			3,418		5			3,371		4			3,135		4			3,165		4			3,110		4
Non-investment grade fixed maturity securities			3,130		4			3,049		4			2,976		4			2,987		4			2,971		4
Equity securities:
Common stocks and mutual funds			72		—			63		—			155		—			296		—			475		1
Preferred stocks			84		—			84		—			83		—			90		—			100		—
Commercial mortgage loans, net			6,886		9			6,879		9			6,755		9			6,743		9			6,880		9
Policy loans			2,067		3			2,083		3			1,976		3			1,978		3			2,153		3
Cash, cash equivalents, restricted cash and short-term investments			2,006		3			2,335		3			1,981		3			2,606		3			2,788		3
Securities lending			—		—			105		—			68		—			67		—			75		—
Other invested assets:	Limited partnerships		1,617		2			1,354		2			1,160		2			1,049		1			844		1
	Derivatives:
	Interest rate swaps		298		—			280		—			84		—			468		1			708		1
	Foreign currency swaps		5		—			2		—			—		—			1		—			10		—
	Equity index options		33		—			47		—			53		—			63		—			67		—
	Other foreign currency contracts		2		—			24		—			27		—			42		—			17		—
	Other		311		1			327		1			350		—			364		1			402		1
Total invested assets and cash		$	74,655		100	%	$	75,232		100	%	$	72,923		100	%	$	77,262		100	%	$	76,891		100	%
Public Fixed Maturity Securities—Credit Quality:
NRSRO(2) Designation
AAA		$	8,393		19	%	$	8,505		20	%	$	8,308		20	%	$	9,252		21	%	$	9,409		21	%
AA			3,907		9			3,872		9			3,500		8			3,699		8			3,661		8
A			11,134		26			11,158		26			10,986		26			11,784		26			11,852		27
BBB			17,980		42			18,208		41			17,581		42			18,327		41			17,275		40
BB			1,658		4			1,637		4			1,579		4			1,634		4			1,607		4
B			53		—			45		—			69		—			74		—			71		—
CCC and lower			—		—			6		—			6		—			6		—			42		—
Total public fixed maturity securities		$	43,125		100	%	$	43,431		100	%	$	42,029		100	%	$	44,776		100	%	$	43,917		100	%
Private Fixed Maturity Securities—Credit Quality:
NRSRO(2) Designation
AAA		$	856		5	%	$	862		5	%	$	973		5	%	$	1,103		6	%	$	1,099		6	%
AA			1,831		10			1,850		10			1,882		10			2,020		11			2,010		11
A			5,240		29			5,183		28			5,188		29			5,482		29			5,377		29
BBB			8,803		48			8,962		49			8,837		49			8,841		47			8,718		47
BB			1,252		7			1,190		7			1,117		6			1,042		6			1,054		6
B			158		1			162		1			197		1			219		1			183		1
CCC and lower			9		—			9		—			8		—			12		—			14		—
Total private fixed maturity securities		$	18,149		100	%	$	18,218		100	%	$	18,202		100	%	$	18,719		100	%	$	18,455		100	%

⁽¹⁾  The company does not have any material exposure to residential mortgage-backed securities collateralized debt obligations (CDOs).

⁽²⁾  Nationally Recognized Statistical Rating Organizations.

32

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Fixed Maturity Securities Summary

(amounts in millions)

	September 30, 2021					June 30, 2021					March 31, 2021					December 31, 2020					September 30, 2020
	Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total
Fixed Maturity Securities—Security Sector:
U.S. government, agencies and government-sponsored enterprises	$	4,500		7	%	$	4,484		7	%	$	4,273		7	%	$	4,805		8	%	$	4,792		8	%
State and political subdivisions		3,418		6			3,371		6			3,135		5			3,165		5			3,110		5
Foreign government		835		1			802		1			820		1			854		1			747		1
U.S. corporate		35,132		57			35,289		57			34,107		57			35,857		56			35,004		56
Foreign corporate		10,740		18			10,744		18			10,485		17			10,811		17			10,595		17
Residential mortgage-backed securities		1,572		3			1,691		3			1,774		3			1,909		3			2,075		3
Commercial mortgage-backed securities		2,670		4			2,734		4			2,794		5			2,974		5			2,976		5
Other asset-backed securities		2,407		4			2,534		4			2,843		5			3,120		5			3,073		5
Total fixed maturity securities	$	61,274		100	%	$	61,649		100	%	$	60,231		100	%	$	63,495		100	%	$	62,372		100	%
Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	11,231		25	%	$	11,155		24	%	$	10,807		25	%	$	11,303		25	%	$	10,723		24	%
Utilities		5,953		13			5,948		13			5,736		13			6,019		13			5,985		13
Energy		3,645		8			3,592		8			3,417		8			3,496		7			3,337		7
Consumer - non-cyclical		6,703		15			6,726		15			6,545		15			6,977		15			6,867		15
Consumer - cyclical		1,891		4			1,979		4			1,922		4			1,944		4			2,043		4
Capital goods		3,349		7			3,371		7			3,275		7			3,431		7			3,485		8
Industrial		2,251		5			2,344		5			2,299		5			2,390		5			2,273		5
Technology and communications		4,547		10			4,518		10			4,376		10			4,589		10			4,258		9
Transportation		1,836		4			1,924		4			1,877		4			2,053		4			2,135		5
Other		1,510		3			1,596		4			1,516		3			1,639		4			1,702		4
Subtotal		42,916		94			43,153		94			41,770		94			43,841		94			42,808		94
Non-Investment Grade:
Finance and insurance		226		—			234		1			243		1			275		1			288		1
Utilities		95		—			88		—			94		—			97		—			95		—
Energy		782		2			759		1			712		1			767		2			738		2
Consumer - non-cyclical		270		1			243		1			243		1			233		—			219		—
Consumer - cyclical		369		1			368		1			389		1			374		1			347		1
Capital goods		163		—			141		—			152		—			136		—			152		—
Industrial		366		1			368		1			356		1			340		1			340		1
Technology and communications		490		1			520		1			488		1			463		1			451		1
Transportation		26		—			26		—			18		—			17		—			56		—
Other		169		—			133		—			127		—			125		—			105		—
Subtotal		2,956		6			2,880		6			2,822		6			2,827		6			2,791		6
Total	$	45,872		100	%	$	46,033		100	%	$	44,592		100	%	$	46,668		100	%	$	45,599		100	%
Fixed Maturity Securities—Contractual Maturity Dates:
Due in one year or less	$	1,449		2	%	$	1,291		2	%	$	1,291		2	%	$	1,305		2	%	$	1,375		2	%
Due after one year through five years		9,039		15			9,030		15			8,926		15			9,185		14			8,998		15
Due after five years through ten years		14,956		24			15,158		25			14,904		24			14,759		23			14,548		23
Due after ten years		29,181		48			29,211		47			27,699		46			30,243		48			29,327		47
Subtotal		54,625		89			54,690		89			52,820		87			55,492		87			54,248		87
Mortgage and asset-backed securities		6,649		11			6,959		11			7,411		13			8,003		13			8,124		13
Total fixed maturity securities	$	61,274		100	%	$	61,649		100	%	$	60,231		100	%	$	63,495		100	%	$	62,372		100	%

33

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

General Account U.S. GAAP Net Investment Income Yields

(amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
U.S. GAAP Net Investment Income
Fixed maturity securities - taxable	$	614		$	608		$	599		$	1,821		$	618		$	625		$	594		$	611		$	2,448
Fixed maturity securities - non-taxable		2			1			2			5			1			2			1			2			6
Equity securities		2			2			3			7			5			3			2			2			12
Commercial mortgage loans		93			103			78			274			94			82			84			85			345
Other invested assets		63			58			58			179			65			57			52			49			223
Limited partnerships		59			54			31			144			38			22			14			(2	)		72
Policy loans		47			40			50			137			50			51			49			49			199
Cash, cash equivalents, restricted cash and short-term investments		1			—			—			1			—			1			4			10			15
Gross investment income before expenses and fees		881			866			821			2,568			871			843			800			806			3,320
Expenses and fees		(22	)		(22	)		(20	)		(64	)		(25	)		(23	)		(21	)		(24	)		(93	)
Net investment income	$	859		$	844		$	801		$	2,504		$	846		$	820		$	779		$	782		$	3,227
Annualized Yields
Fixed maturity securities - taxable		4.6	%		4.6	%		4.5	%		4.6	%		4.6	%		4.7	%		4.5	%		4.7	%		4.7	%
Fixed maturity securities - non-taxable		6.3	%		3.1	%		6.3	%		5.2	%		3.1	%		6.2	%		2.6	%		5.2	%		4.3	%
Equity securities		5.3	%		4.1	%		3.8	%		4.0	%		4.2	%		3.3	%		5.3	%		4.8	%		4.2	%
Commercial mortgage loans		5.4	%		6.0	%		4.6	%		5.4	%		5.5	%		4.8	%		4.9	%		4.9	%		5.0	%
Other invested assets(1)		79.5	%		68.6	%		65.0	%		70.8	%		67.9	%		56.2	%		50.0	%		48.2	%		56.0	%
Limited partnerships(2)		15.9	%		17.2	%		11.2	%		14.8	%		16.1	%		10.9	%		7.8	%		(1.2	)%		9.1	%
Policy loans		9.1	%		7.9	%		10.1	%		9.0	%		9.7	%		9.4	%		9.3	%		9.5	%		9.5	%
Cash, cash equivalents, restricted cash and short-term investments		0.2	%		—	%		—	%		0.1	%		—	%		0.1	%		0.6	%		1.4	%		0.5	%
Gross investment income before expenses and fees		5.3	%		5.2	%		5.0	%		5.2	%		5.2	%		5.1	%		4.9	%		4.9	%		5.0	%
Expenses and fees		(0.1	)%		(0.1	)%		(0.2	)%		(0.2	)%		(0.1	)%		(0.2	)%		(0.1	)%		(0.1	)%		(0.1	)%
Net investment income		5.2	%		5.1	%		4.8	%		5.0	%		5.1	%		4.9	%		4.8	%		4.8	%		4.9	%

Yields are based on net investment income as reported under U.S. GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability. See page 38 herein for average invested assets and cash used in the yield calculation.

⁽¹⁾  Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation.

⁽²⁾  Limited partnership investments are primarily equity-based and do not have fixed returns by period.

34

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Net Investment Gains (Losses), Net—Detail

(amounts in millions)

	2021												2020
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	8		$	2		$	4		$	14		$	7		$	2		$	2		$	2		$	13
U.S. government, agencies and government-sponsored enterprises		—			—			—			—			—			316			94			—			410
Foreign corporate		1			(2	)		1			—			5			1			(1	)		—			5
Foreign government		(1	)		1			—			—			—			—			1			—			1
Tax exempt		—			—			—			—			1			—			—			—			1
Mortgage-backed securities		3			—			(1	)		2			11			—			4			—			15
Asset-backed securities		—			—			—			—			(1	)		—			(2	)		—			(3	)
Total net realized gains (losses) on available-for-sale securities		11			1			4			16			23			319			98			2			442
Net change in allowance for credit losses on available-for-sale fixed maturity securities		—			(4	)		(2	)		(6	)		—			2			(7	)		—			(5	)
Write-down of available-for-sale fixed maturity securities		—			—			(1	)		(1	)		—			(4	)		—			—			(4	)
Net realized gains (losses) on equity securities sold		—			(2	)		(5	)		(7	)		2			(3	)		—			—			(1	)
Net unrealized gains (losses) on equity securities still held		(1	)		6			(8	)		(3	)		8			3			5			(12	)		4
Limited partnerships		75			65			37			177			84			31			37			(40	)		112
Commercial mortgage loans		3			(1	)		(1	)		1			—			(3	)		1			—			(2	)
Derivative instruments		(3	)		4			8			9			26			9			(36	)		(48	)		(49	)
Other		3			1			1			5			4			(3	)		(5	)		(1	)		(5	)
Net investment gains (losses), gross		88			70			33			191			147			351			93			(99	)		492
Adjustment for DAC and other intangible amortization and certain benefit reserves		—			—			—			—			(3	)		(1	)		4			11			11
Net investment gains (losses), net	$	88		$	70		$	33		$	191		$	144		$	350		$	97		$	(88	)	$	503

35

Reconciliations of Non-GAAP Measures

36

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Reconciliation of Operating ROE

(amounts in millions)

Twelve Month Rolling Average ROE	Twelve months ended
U.S. GAAP Basis ROE	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended(1)	$	1,008		$	1,112		$	431		$	178		$	(106	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income(2)	$	11,079		$	10,823		$	10,684		$	10,618		$	10,592
U.S. GAAP Basis ROE (1)/(2)		9.1	%		10.3	%		4.0	%		1.7	%		(1.0	)%
Operating ROE
Adjusted operating income for the twelve months ended(1)	$	789		$	675		$	458		$	310		$	125
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income(2)	$	11,079		$	10,823		$	10,684		$	10,618		$	10,592
Operating ROE (1)/(2)		7.1	%		6.2	%		4.3	%		2.9	%		1.2	%
Quarterly Average ROE	Three months ended
U.S. GAAP Basis ROE	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
Net income available to Genworth Financial, Inc.’s common stockholders for the period ended(3)	$	314		$	240		$	187		$	267		$	418
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income(4)	$	11,403		$	11,207		$	10,988		$	10,754		$	10,406
Annualized U.S. GAAP Quarterly Basis ROE (3)/(4)		11.0	%		8.6	%		6.8	%		9.9	%		16.1	%
Operating ROE
Adjusted operating income for the period ended(3)	$	239		$	194		$	168		$	188		$	125
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income(4)	$	11,403		$	11,207		$	10,988		$	10,754		$	10,406
Annualized Operating Quarterly Basis ROE (3)/(4)		8.4	%		6.9	%		6.1	%		7.0	%		4.8	%

Non-GAAP Definition for Operating ROE

The company references the non-GAAP financial measure entitled “operating return on equity” or “operating ROE.” The company defines operating ROE as adjusted operating income (loss) divided by average ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss) in average ending Genworth Financial, Inc.’s stockholders’ equity. Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders divided by average ending Genworth Financial, Inc.’s stockholders’ equity determined in accordance with U.S. GAAP.

⁽¹⁾  The twelve months ended information is derived by adding the four quarters of net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income from page 9 herein.

⁽²⁾  Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, for the most recent five quarters.

⁽³⁾  Net income available to Genworth Financial, Inc.’s common stockholders and adjusted operating income from page 9 herein.

⁽⁴⁾  Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income.

37

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Reconciliation of Reported Yield to Core Yield

		2021												2020
	(Assets - amounts in billions)		3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
	Reported - Total Invested Assets and Cash	$	74.7		$	75.2		$	72.9		$	74.7		$	77.3		$	76.9		$	75.7		$	71.3		$	77.3
	Subtract:
	Securities lending		—			0.1			0.1			—			0.1			0.1			0.1			0.1			0.1
	Unrealized gains (losses)		8.5			8.9			6.9			8.5			10.7			9.9			9.7			6.0			10.7
	Adjusted end of period invested assets and cash	$	66.2		$	66.2		$	65.9		$	66.2		$	66.5		$	66.9		$	65.9		$	65.2		$	66.5
(A)	Average Invested Assets and Cash Used in Reported and Core Yield Calculation	$	66.2		$	66.1		$	66.2		$	66.2		$	66.7		$	66.4		$	65.6		$	65.3		$	66.0
	(Income - amounts in millions)
(B)	Reported - Net Investment Income	$	859		$	844		$	801		$	2,504		$	846		$	820		$	779		$	782		$	3,227
	Subtract:
	Bond calls and commercial mortgage loan prepayments		43			39			15			97			40			23			8			16			87
	Other non-core items(1)		(4	)		3			2			1			6			6			2			7			21
(C)	Core Net Investment Income	$	820		$	802		$	784		$	2,406		$	800		$	791		$	769		$	759		$	3,119
(B) / (A)	Reported Yield		5.19	%		5.11	%		4.84	%		5.04	%		5.07	%		4.94	%		4.75	%		4.79	%		4.89	%
(C) / (A)	Core Yield		4.95	%		4.85	%		4.73	%		4.84	%		4.80	%		4.76	%		4.69	%		4.65	%		4.73	%

Note:    Yields have been annualized.

Non-GAAP Definition for Core Yield

The company references the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP.    

⁽¹⁾  Includes cost basis adjustments on structured securities and various other immaterial items.

38

Corporate Information

39

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

Financial Strength Ratings As Of November 1, 2021

Company	Standard & Poor’s Financial Services LLC (S&P)	Moody’s Investors Service, Inc. (Moody’s)	A.M. Best Company, Inc. (A.M. Best)
Genworth Mortgage Insurance Corporation	BBB (Good)	Baa2 (Adequate)	N/A
Genworth Life Insurance Company	N/A	N/A	C++ (Marginal)
Genworth Life and Annuity Insurance Company	N/A	N/A	B (Fair)
Genworth Life Insurance Company of New York	N/A	N/A	C++ (Marginal)

The ratings included herewith represent those solicited by the company and 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 the company’s securities.

S&P states that an insurer rated “BBB” (Good) has good financial security characteristics. The “BBB” range is the fourth-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 rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “BBB” rating is the ninth-highest of S&P’s 21 ratings categories.

Moody’s states that insurance companies rated “Baa” (Adequate) offer adequate financial security. The “Baa” (Adequate) range is the fourth-highest 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 groups, 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 “Baa2” rating is the ninth-highest of Moody’s 21 ratings categories.

A.M. Best states that its “B” (Fair) rating is assigned to companies that have, in its opinion, a fair ability to meet their ongoing insurance obligations while “C++” (Marginal) is assigned to those companies that have, in its opinion, a marginal ability to meet their ongoing insurance obligations. The “B” (Fair) and “C++” (Marginal) ratings are the seventh- and ninth-highest of 15 ratings assigned by A.M. Best, which range from “A++” to “F.”

The company also solicits a rating from HR Ratings on a local scale for Genworth Seguros de Credito a la Vivienda S.A. de C.V., its Mexican mortgage insurance subsidiary, with a short-term rating of “HR1” and long-term rating of “HR AA.” For short-term ratings, HR Ratings states that “HR1” rated companies are viewed as exhibiting high capacity for timely payment of debt obligations in the short-term and maintain low credit risk. The “HR1” short-term rating category is the highest of six short-term rating categories, which range from “HR1” to “HR D.” For long-term ratings, HR Ratings states that “HR AA” rated companies are viewed as having high credit quality and offer high safety for timely payment of debt obligations and maintain low credit risk under adverse economic scenarios. The “HR AA” long-term rating is the second-highest of HR Ratings’ eight long-term rating categories, which range from “HR AAA” to “HR D.”

S&P, Moody’s, A.M. Best and HR Ratings review their ratings periodically and the company cannot assure you that it will maintain the current ratings in the future. These and other agencies may also rate the company or its insurance subsidiaries on a solicited or an unsolicited basis. The company does not provide information to agencies issuing unsolicited ratings and cannot ensure that any agencies that rate the company or its insurance subsidiaries on an unsolicited basis will continue to do so.

40

XML

Document and Entity Information	Nov. 02, 2021
Cover [Abstract]
Entity Registrant Name	GENWORTH FINANCIAL INC
Amendment Flag	false
Entity Central Index Key	0001276520
Document Type	8-K
Document Period End Date	Nov. 02, 2021
Entity Incorporation State Country Code	DE
Entity File Number	001-32195
Entity Tax Identification Number	80-0873306
Entity Address, Address Line One	6620 West Broad Street
Entity Address, City or Town	Richmond
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23230
City Area Code	(804)
Local Phone Number	281-6000
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Class A Common Stock, par value $.001 per share
Trading Symbol	GNW
Security Exchange Name	NYSE
Entity Emerging Growth Company	false