Genworth Holdings had $1.1 billion and $795 million of cash, cash equivalents and restricted
cash as of March 31, 2018 and December 31, 2017, respectively, which included approximately $4 million of restricted cash. Genworth Holdings also held $75 million in U.S. government securities as of March 31, 2018 and
December 31, 2017, which included approximately $37 million and $41 million, respectively, of restricted assets.
During the three
months ended March 31, 2018 and 2017, we received common stock dividends from our international subsidiaries of $63 million and $52 million, respectively.
Regulated insurance subsidiaries
The liquidity requirements of our regulated insurance subsidiaries principally relate to the liabilities associated with their various
insurance and investment products, operating costs and expenses, the payment of dividends to us, contributions to their subsidiaries, payment of principal and interest on their outstanding debt obligations and income taxes. Liabilities arising from
insurance and investment products include the payment of benefits, as well as cash payments in connection with policy surrenders and withdrawals, policy loans and obligations to redeem funding agreements.
Our insurance subsidiaries have used cash flows from operations and investment activities to fund their liquidity requirements. Our insurance
subsidiaries principal cash inflows from operating activities are derived from premiums, annuity deposits and insurance and investment product fees and other income, including commissions, cost of insurance, mortality, expense and surrender
charges, contract underwriting fees, investment management fees and dividends and distributions from their subsidiaries. The principal cash inflows from investment activities result from repayments of principal, investment income and, as necessary,
sales of invested assets.
Our insurance subsidiaries maintain investment strategies intended to provide adequate funds to pay benefits
without forced sales of investments. Products having liabilities with longer durations, such as certain life insurance and long-term care insurance policies, are matched with investments having similar duration such as long-term fixed maturity
securities and commercial mortgage loans. Shorter-term liabilities are matched with fixed maturity securities that have short- and medium-term fixed maturities. In addition, our insurance subsidiaries hold highly liquid, high quality short-term
investment securities and other liquid investment grade fixed maturity securities to fund anticipated operating expenses, surrenders and withdrawals. As of March 31, 2018, our total cash, cash equivalents, restricted cash and invested assets
were $74.6 billion. Our investments in privately placed fixed maturity securities, commercial mortgage loans, policy loans, limited partnership investments and select mortgage-backed and asset-backed securities are relatively illiquid. These asset
classes represented approximately 34% of the carrying value of our total cash, cash equivalents, restricted cash and invested assets as of March 31, 2018.
As of March 31, 2018, our U.S. mortgage insurance business was compliant with the PMIERs capital requirements, with a prudent buffer. The
reinsurance transaction covering our 2014 through 2017 book years provided an aggregate of approximately $560 million of PMIERs capital credit as of March 31, 2018. Our U.S. mortgage insurance business may execute future capital transactions to
maintain a prudent level of financial flexibility in excess of the PMIERs capital requirements given the dynamic nature of asset valuations and requirement changes over time, including additional reinsurance transactions and contributions of holding
company cash.
In August 2017, Genworth Mortgage Insurance Australia Limited (Genworth Australia) announced its intention to
commence an on-market share buyback program for shares up to a maximum aggregate amount of AUD$100 million. Genworth Australia began the share buyback program in 2017 and completed it in February 2018, repurchasing approximately 19 million shares
for AUD$49 million in the first quarter of 2018. As the majority shareholder, we participated in on-market sales transactions during the buy-back period to maintain our ownership position of approximately 52.0% and received $20 million in cash,
which was paid to Genworth
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