GENWORTH FINANCIAL INC false 0001276520 0001276520 2023-07-11 2023-07-11
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
July 11, 2023
Date of Report
(Date of earliest event reported)
![LOGO](https://www.sec.gov/Archives/edgar/data/1276520/000119312523185364/g506258g0707043209389.jpg)
GENWORTH FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-32195 |
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80-0873306 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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6620 West Broad Street, Richmond, VA |
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23230 |
(Address of principal executive offices) |
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(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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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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:
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Title of each class |
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Trading Symbol |
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Name of each exchange on which registered |
Class A Common Stock, par value $.001 per share |
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GNW |
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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 7.01 |
Regulation FD Disclosure. |
On January 1, 2023, Genworth Financial, Inc. (the “Company” or “Genworth”) adopted new U.S. GAAP accounting guidance that significantly changed the recognition and measurement of long-duration insurance contracts, commonly known as long-duration targeted improvements (“LDTI”). This accounting guidance impacted the Company’s long-term care insurance, life insurance and annuity products and was applied as of January 1, 2021, also known as the transition date. The unaudited quarterly financial supplement of Genworth as of and for the periods ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and for the year ended December 31, 2021 is being furnished as Exhibit 99.1 and incorporated by reference herein. All prior period information included in Exhibit 99.1 has been re-presented to reflect the adoption of LDTI. The information is being provided on an unaudited basis to assist investors and others in evaluating the impact of LDTI on the Company’s financial position and results of operations. It is possible that the final audited financial results may differ, perhaps materially, from the information included in this Current Report on Form 8-K (including Exhibit 99.1). In addition, the unaudited financial results reported in this Current Report on Form 8-K (including Exhibit 99.1) are not indicative of future financial results and should be read in conjunction with the Company’s 2022 Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the period ended March 31, 2023.
The information contained in this Current Report on Form 8-K (including Exhibit 99.1) 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.
Forward Looking Statements
This Current Report on Form 8-K 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,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning and include, but are not limited to, statements regarding the outlook for future business and financial performance of Genworth and its consolidated subsidiaries. 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 due to global political, economic, business, competitive, market, regulatory and other factors and risks, as well as risks discussed in the risk factor section of Genworth’s Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission on February 28, 2023. Genworth undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
Item 9.01 |
Financial Statements and Exhibits. |
The following materials are furnished as exhibits to this Current Report on Form 8-K:
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.
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GENWORTH FINANCIAL, INC. |
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Date: July 11, 2023 |
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By: |
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/s/ Cristina E. Ahn |
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Cristina E. Ahn |
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Vice President and Controller |
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(Principal Accounting Officer) |
Exhibit
99.1
Page
intentionally left blank
i
Cautionary Note Regarding Forward-Looking Statements
This financial supplement 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, anticipates, intends, plans, believes, seeks, estimates, will or words of similar
meaning and include, but are not limited to, statements regarding the outlook for future business and financial performance of Genworth Financial, Inc. and its consolidated subsidiaries. Forward-looking statements are based on managements
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 due to global political, economic, business,
competitive, market, regulatory and other factors and risks, as well as risks discussed in the risk factor section of the companys Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission on February 28,
2023. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
ii
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
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Table of Contents |
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Page |
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Investor Letter |
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3 |
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Use of Non-GAAP Measures |
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4 |
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Results of Operations and Selected Operating Performance Measures |
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5 |
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Financial Highlights |
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6 |
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Consolidated Quarterly Results |
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Consolidated Net Income by Quarter |
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8 |
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Reconciliation of Net Income to Adjusted Operating Income |
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9 |
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Consolidated Balance Sheets |
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10-11 |
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Consolidated Balance Sheets by Segment |
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12-13 |
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Quarterly Results by Business |
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Adjusted Operating Income and SalesEnact Segment |
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15-20 |
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Adjusted Operating Income (Loss)Long-Term Care Insurance Segment |
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22 |
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Adjusted Operating Income (Loss)Life and Annuities Segment |
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24-27 |
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Adjusted Operating LossCorporate and Other |
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29 |
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Additional Financial Data |
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Investments Summary |
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31 |
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Fixed Maturity Securities Summary |
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32 |
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U.S. GAAP Net Investment Income Yields |
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33 |
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Net Investment Gains (Losses)Detail |
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34 |
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Reconciliations of Non-GAAP Measures |
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Reconciliation of Operating Return On Equity (ROE) |
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36 |
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Reconciliation of Consolidated Expense Ratio |
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37 |
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Reconciliation of Reported Yield to Core Yield |
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38 |
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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.
RE-PRESENTED FINANCIAL SUPPLEMENT
Dear Investor,
As mentioned in the companys first quarter 2023 earnings materials, on January 1, 2023, the company adopted new U.S. GAAP accounting guidance that
significantly changed the recognition and measurement of long-duration insurance contracts, commonly known as long-duration targeted improvements (LDTI). This accounting guidance impacted the companys long-term care insurance, life insurance
and annuity products and was applied as of January 1, 2021, also known as the transition date. While the new guidance has had a significant impact on U.S. GAAP financial statements and disclosures, it does not impact the cash flows or
underlying economics of the business, business strategy, statutory net income (loss), risk-based capital of the companys U.S. life insurance companies, management of capital or the companys Enact segment and Corporate and Other.
All prior period information has been re-presented to reflect the adoption of LDTI and is currently unaudited. The company is providing this unaudited
financial supplement (including all quarters of 2022 and the full year 2022 and 2021 results), re-presented for the adoption of LDTI, to assist investors and others in evaluating the impact the new accounting standard has had on the companys
historic financial position and results of operations. The company believes that this information also demonstrates that applying LDTI to its Long-Term Care Insurance and Life and Annuities segments will likely increase the quarterly volatility of
their results. It is possible that the final audited financial results may differ, perhaps materially, from the information included in this financial supplement. In addition, the unaudited financial results reported in this financial supplement are
not indicative of future financial results, although as the company has indicated, it does expect the quarterly volatility of results in its Long-Term Care Insurance and Life and Annuities segments to extend to future periods with the adoption of
LDTI.
There are some changes related to the implementation of LDTI to highlight for the companys Long-Term Care Insurance and Life and Annuities
segments:
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Assumptions are best estimate and updated annually in the fourth quarter. Changes in assumptions now flow
through the liability remeasurement (gains) losses financial statement line item in the income statement, which contributes significantly to annual income volatility. However, the company will update cash flow assumptions related to the timing and
approval amounts of in-force rate actions on a quarterly basis, which could contribute to quarterly income volatility for its Long-Term Care Insurance segment.
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Assumptions are recorded at a more granular cohort level. Impacts from older less profitable capped cohorts that
do not have margin will more heavily influence income statement results than impacts from newer uncapped profitable cohorts that have positive margin. |
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The liability remeasurement (gains) losses financial statement line item in the income statement includes the
differences between actual experience and best estimate assumptions on a quarterly basis and can be favorable or unfavorable. |
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Best estimate assumptions for long-term care insurance products now include an estimate for reduced reserves
from both in-force rate actions and settlements. Therefore, the reserve releases from in-force rate actions and settlements will only impact the income statement on a quarterly basis to the extent that actual experience differs from expectations as
mentioned above. However, there was no change to how the company accounts for premiums related to in-force rate actions or litigation expenses, including cash damages, associated with the settlements. These items are recorded to the income statement
when they occur. |
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Market risk benefits (primarily variable annuities) are recorded at fair value. The company excludes changes in
fair value of market risk benefits attributable to interest rates, equity markets and associated hedges from adjusted operating income (loss). See page 24 for additional details. |
Additional information concerning the companys long-term care insurance business is included on page 22 of this financial supplement. As disclosed
on page 22, in the fourth quarter of 2022, the liability remeasurement gain of $464 million in the companys long-term care insurance business reflected favorable assumption updates of
$508 million, largely from an update to legal settlement elections attributable to the inclusion of a second legal settlement and the resulting expected reserve reduction. This settlement, comprised of PCS I and PSC II policies, represents
approximately 15% of the overall block and impacts older unprofitable capped cohorts. When the company updates its assumptions for its third long-term care insurance legal settlement later in 2023 for its
Choice II policies, which represents approximately 35% of the overall block, a favorable reserve release and corresponding income statement impact is not expected to be as material because this settlement impacts profitable uncapped cohorts. As
previously disclosed, the companys blocks with profits or margin have a net premium ratio below 100% and therefore have less impact on liability remeasurement (gains) losses in the income statement.
Thank you for your continued interest in Genworth Financial, Inc.
Regards,
Sarah E. Crews, Investor Relations
InvestorInfo@genworth.com
3
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
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 companys President and Chief Executive Officer (Principal Executive Officer), who serves as 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), changes in fair value of market risk benefits and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early
extinguishment of debt, restructuring costs and infrequent or unusual non-operating items. A component of the companys 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 companys discretion and are influenced by market opportunities, as well as asset-liability matching
considerations. The company excludes net investment gains (losses), changes in fair value of market risk benefits and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring
costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in the companys opinion, they are not indicative of overall operating performance.
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 companys 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. Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed
fees and benefit payments.
In the third and fourth quarters of 2022, the company incurred $6 million and $2 million, respectively, of pre-tax pension
plan termination costs related to one of its defined benefit pension plans. There were no other 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 available to Genworth Financial, Inc.s common stockholders to
adjusted operating income 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 36 to 38 of this financial supplement.
4
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Results of Operations and Selected Operating Performance Measures
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.
The annually-determined tax rates and adjustments to each segments provision for income taxes are estimates which are subject to review and could change
from year to year. U.S. GAAP generally requires an annualized effective tax rate to be used for interim reporting periods, utilizing projections of full year results. However, in certain circumstances it is appropriate to record the actual effective
tax rate for the period if a reliable full year estimate cannot be made. For the three months ended March 31, 2023, the company utilized the actual effective tax rate for the interim period to record the provision for income taxes for its
Long-Term Care Insurance and Life and Annuities segments and the annualized projected effective tax rate for its Enact segment and Corporate and Other. The company utilized the effective tax rate for the years ended December 31, 2022 and 2021
in determining the re-presented provision for income taxes for the quarters in 2022 and the full year 2021, respectively.
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 companys Enact segment. The company considers new insurance written to be a measure of the operating performance of its Enact segment because it represents a measure of new sales of insurance
policies during a specified period, rather than a measure of revenues or profitability during that period.
Management regularly monitors and reports
insurance in-force, risk in-force and a loss ratio for the companys Enact segment. Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans insured by the companys U.S.
mortgage insurance subsidiaries. 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 the operating performance of
its Enact segment 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. The loss ratio is
the ratio of benefits and other changes in policy reserves to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance and helps to enhance the understanding of the operating performance of the Enact
segment.
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.
RE-PRESENTED FINANCIAL SUPPLEMENT
Financial Highlights
(amounts in millions, except per share data)
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Balance Sheet Data |
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March 31, 2023 |
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December 31, 2022 |
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September 30, 2022 |
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June 30, 2022 |
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March 31, 2022 |
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Total Genworth Financial, Inc.s stockholders equity, excluding accumulated other
comprehensive income (loss) |
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$ |
10,290 |
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$ |
10,303 |
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$ |
9,822 |
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$ |
9,688 |
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$ |
9,548 |
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Total accumulated other comprehensive income
(loss)(1) |
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(2,858 |
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(2,617 |
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(2,635 |
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(3,296 |
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(4,564 |
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Total Genworth Financial, Inc.s stockholders equity |
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$ |
7,432 |
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$ |
7,686 |
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$ |
7,187 |
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$ |
6,392 |
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$ |
4,984 |
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Book value per share |
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$ |
15.26 |
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$ |
15.51 |
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$ |
14.30 |
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$ |
12.59 |
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$ |
9.77 |
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Book value per share, excluding accumulated other comprehensive income (loss) |
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$ |
21.13 |
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$ |
20.80 |
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$ |
19.54 |
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$ |
19.08 |
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$ |
18.71 |
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Common shares outstanding as of the balance sheet date |
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486.9 |
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495.4 |
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502.6 |
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507.8 |
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510.3 |
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Three months ended |
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Quarterly Average ROE |
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March 31, 2023 |
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December 31, 2022 |
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September 30, 2022 |
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June 30, 2022 |
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March 31, 2022 |
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U.S. GAAP Basis ROE |
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2.4 |
% |
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20.2 |
% |
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6.0 |
% |
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6.4 |
% |
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8.1 |
% |
Operating ROE(2) |
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3.3 |
% |
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18.5 |
% |
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6.9 |
% |
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6.1 |
% |
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5.1 |
% |
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Basic and Diluted Shares |
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Three months ended March 31, 2023 |
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Weighted-average common shares used in basic earnings per share calculations |
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492.3 |
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Potentially dilutive securities: |
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Stock options, restricted stock units and other equity-based awards |
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7.8 |
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Weighted-average common shares used in diluted earnings per share calculations |
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500.1 |
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(1) |
As of March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022
and March 31, 2022, total accumulated other comprehensive income (loss) includes $(1,633) million, $(406) million, $112 million, $(3,175) million and $(8,462) million, net of taxes, respectively, related to changes in the current discount rate
used to remeasure the liability for future policy benefits and related reinsurance recoverables. |
(2) |
See page 36 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE. |
6
Consolidated Quarterly Results
7
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Consolidated Net Income by Quarter
(amounts in millions, except per share amounts)
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2023 |
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2022 |
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2021 |
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1Q |
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4Q |
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3Q |
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2Q |
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1Q |
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Total |
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Full Year |
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REVENUES: |
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Premiums |
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$ |
915 |
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$ |
918 |
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$ |
929 |
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$ |
916 |
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$ |
917 |
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$ |
3,680 |
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$ |
3,406 |
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Net investment income |
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787 |
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787 |
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808 |
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787 |
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764 |
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3,146 |
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3,370 |
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Net investment gains (losses) |
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(11 |
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(5 |
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|
|
(58 |
) |
|
|
19 |
|
|
|
42 |
|
|
|
(2 |
) |
|
|
322 |
|
Policy fees and other income |
|
|
163 |
|
|
|
167 |
|
|
|
169 |
|
|
|
165 |
|
|
|
170 |
|
|
|
671 |
|
|
|
724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,854 |
|
|
|
1,867 |
|
|
|
1,848 |
|
|
|
1,887 |
|
|
|
1,893 |
|
|
|
7,495 |
|
|
|
7,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
1,172 |
|
|
|
1,207 |
|
|
|
1,158 |
|
|
|
767 |
|
|
|
1,165 |
|
|
|
4,297 |
|
|
|
4,601 |
|
Liability remeasurement (gains)
losses(1) |
|
|
22 |
|
|
|
(476 |
) |
|
|
14 |
|
|
|
29 |
|
|
|
(41 |
) |
|
|
(474 |
) |
|
|
136 |
|
Changes in fair value of market risk benefits and associated hedges |
|
|
17 |
|
|
|
(56 |
) |
|
|
(27 |
) |
|
|
20 |
|
|
|
(41 |
) |
|
|
(104 |
) |
|
|
(160 |
) |
Interest credited |
|
|
126 |
|
|
|
125 |
|
|
|
128 |
|
|
|
126 |
|
|
|
125 |
|
|
|
504 |
|
|
|
511 |
|
Acquisition and operating expenses, net of deferrals |
|
|
283 |
|
|
|
270 |
|
|
|
235 |
|
|
|
584 |
|
|
|
280 |
|
|
|
1,369 |
|
|
|
1,183 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
72 |
|
|
|
74 |
|
|
|
80 |
|
|
|
84 |
|
|
|
88 |
|
|
|
326 |
|
|
|
384 |
|
Interest expense |
|
|
29 |
|
|
|
28 |
|
|
|
26 |
|
|
|
26 |
|
|
|
26 |
|
|
|
106 |
|
|
|
160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
1,721 |
|
|
|
1,172 |
|
|
|
1,614 |
|
|
|
1,636 |
|
|
|
1,602 |
|
|
|
6,024 |
|
|
|
6,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
133 |
|
|
|
695 |
|
|
|
234 |
|
|
|
251 |
|
|
|
291 |
|
|
|
1,471 |
|
|
|
1,007 |
|
Provision for income taxes |
|
|
39 |
|
|
|
158 |
|
|
|
57 |
|
|
|
59 |
|
|
|
68 |
|
|
|
342 |
|
|
|
226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
94 |
|
|
|
537 |
|
|
|
177 |
|
|
|
192 |
|
|
|
223 |
|
|
|
1,129 |
|
|
|
781 |
|
Income (loss) from discontinued operations, net of taxes(2) |
|
|
|
|
|
|
(2 |
) |
|
|
5 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
94 |
|
|
|
535 |
|
|
|
182 |
|
|
|
191 |
|
|
|
221 |
|
|
|
1,129 |
|
|
|
808 |
|
Less: net income from continuing operations attributable to noncontrolling interests |
|
|
32 |
|
|
|
27 |
|
|
|
35 |
|
|
|
38 |
|
|
|
30 |
|
|
|
130 |
|
|
|
33 |
|
Less: net income from discontinued operations attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
$ |
62 |
|
|
$ |
508 |
|
|
$ |
147 |
|
|
$ |
153 |
|
|
$ |
191 |
|
|
$ |
999 |
|
|
$ |
767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to Genworth Financial, Inc.s common
stockholders |
|
$ |
62 |
|
|
$ |
510 |
|
|
$ |
142 |
|
|
$ |
154 |
|
|
$ |
193 |
|
|
$ |
999 |
|
|
$ |
748 |
|
Income (loss) from discontinued operations available to Genworth Financial, Inc.s common
stockholders |
|
|
|
|
|
|
(2 |
) |
|
|
5 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
$ |
62 |
|
|
$ |
508 |
|
|
$ |
147 |
|
|
$ |
153 |
|
|
$ |
191 |
|
|
$ |
999 |
|
|
$ |
767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to Genworth Financial, Inc.s common stockholders
per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
|
$ |
1.03 |
|
|
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
0.38 |
|
|
$ |
1.98 |
|
|
$ |
1.48 |
|
Diluted |
|
$ |
0.12 |
|
|
$ |
1.02 |
|
|
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
0.37 |
|
|
$ |
1.96 |
|
|
$ |
1.45 |
|
Net income available to Genworth Financial, Inc.s common stockholders per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
|
$ |
1.02 |
|
|
$ |
0.29 |
|
|
$ |
0.30 |
|
|
$ |
0.38 |
|
|
$ |
1.98 |
|
|
$ |
1.51 |
|
Diluted |
|
$ |
0.12 |
|
|
$ |
1.01 |
|
|
$ |
0.29 |
|
|
$ |
0.30 |
|
|
$ |
0.37 |
|
|
$ |
1.96 |
|
|
$ |
1.49 |
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
492.3 |
|
|
|
496.5 |
|
|
|
503.8 |
|
|
|
508.9 |
|
|
|
508.3 |
|
|
|
504.4 |
|
|
|
506.9 |
|
Diluted |
|
|
500.1 |
|
|
|
502.9 |
|
|
|
509.3 |
|
|
|
514.1 |
|
|
|
517.4 |
|
|
|
510.9 |
|
|
|
514.7 |
|
(1) |
See page 22 for additional information on liability remeasurement (gains) losses. |
(2) |
Income (loss) from discontinued operations primarily relates to a settlement agreement involving the
companys former lifestyle protection insurance business that was sold on December 1, 2015 and operating results of its former Australia mortgage insurance business prior to its sale on March 3, 2021. |
8
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Reconciliation of Net Income to Adjusted Operating Income
(amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
Full Year |
|
NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
$ |
62 |
|
|
$ |
508 |
|
|
$ |
147 |
|
|
$ |
153 |
|
|
$ |
191 |
|
|
$ |
999 |
|
|
$ |
767 |
|
Add: net income from continuing operations attributable to noncontrolling interests |
|
|
32 |
|
|
|
27 |
|
|
|
35 |
|
|
|
38 |
|
|
|
30 |
|
|
|
130 |
|
|
|
33 |
|
Add: net income from discontinued operations attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
94 |
|
|
|
535 |
|
|
|
182 |
|
|
|
191 |
|
|
|
221 |
|
|
|
1,129 |
|
|
|
808 |
|
Less: income (loss) from discontinued operations, net of taxes |
|
|
|
|
|
|
(2 |
) |
|
|
5 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
94 |
|
|
|
537 |
|
|
|
177 |
|
|
|
192 |
|
|
|
223 |
|
|
|
1,129 |
|
|
|
781 |
|
Less: net income from continuing operations attributable to noncontrolling interests |
|
|
32 |
|
|
|
27 |
|
|
|
35 |
|
|
|
38 |
|
|
|
30 |
|
|
|
130 |
|
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON
STOCKHOLDERS |
|
|
62 |
|
|
|
510 |
|
|
|
142 |
|
|
|
154 |
|
|
|
193 |
|
|
|
999 |
|
|
|
748 |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S
COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
11 |
|
|
|
5 |
|
|
|
58 |
|
|
|
(19 |
) |
|
|
(42 |
) |
|
|
2 |
|
|
|
(322 |
) |
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges(1) |
|
|
14 |
|
|
|
(64 |
) |
|
|
(32 |
) |
|
|
8 |
|
|
|
(54 |
) |
|
|
(142 |
) |
|
|
(210 |
) |
(Gains) losses on early extinguishment of debt |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
3 |
|
|
|
1 |
|
|
|
3 |
|
|
|
6 |
|
|
|
45 |
|
Expenses related to restructuring |
|
|
3 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
2 |
|
|
|
34 |
|
Pension plan termination costs |
|
|
|
|
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
Taxes on adjustments |
|
|
(5 |
) |
|
|
12 |
|
|
|
(8 |
) |
|
|
2 |
|
|
|
20 |
|
|
|
26 |
|
|
|
96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
84 |
|
|
$ |
465 |
|
|
$ |
169 |
|
|
$ |
147 |
|
|
$ |
120 |
|
|
$ |
901 |
|
|
$ |
391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enact segment |
|
$ |
143 |
|
|
$ |
120 |
|
|
$ |
156 |
|
|
$ |
167 |
|
|
$ |
135 |
|
|
$ |
578 |
|
|
$ |
520 |
|
Long-Term Care Insurance segment |
|
|
(37 |
) |
|
|
328 |
|
|
|
37 |
|
|
|
11 |
|
|
|
27 |
|
|
|
403 |
|
|
|
43 |
|
Life and Annuities segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life Insurance |
|
|
(27 |
) |
|
|
1 |
|
|
|
(28 |
) |
|
|
(37 |
) |
|
|
(47 |
) |
|
|
(111 |
) |
|
|
(201 |
) |
Fixed Annuities |
|
|
14 |
|
|
|
14 |
|
|
|
15 |
|
|
|
20 |
|
|
|
13 |
|
|
|
62 |
|
|
|
83 |
|
Variable Annuities |
|
|
9 |
|
|
|
8 |
|
|
|
7 |
|
|
|
2 |
|
|
|
4 |
|
|
|
21 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Life and Annuities segment |
|
|
(4 |
) |
|
|
23 |
|
|
|
(6 |
) |
|
|
(15 |
) |
|
|
(30 |
) |
|
|
(28 |
) |
|
|
(96 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
(18 |
) |
|
|
(6 |
) |
|
|
(18 |
) |
|
|
(16 |
) |
|
|
(12 |
) |
|
|
(52 |
) |
|
|
(76 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
84 |
|
|
$ |
465 |
|
|
$ |
169 |
|
|
$ |
147 |
|
|
$ |
120 |
|
|
$ |
901 |
|
|
$ |
391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Genworth Financial, Inc.s common stockholders per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
|
$ |
1.02 |
|
|
$ |
0.29 |
|
|
$ |
0.30 |
|
|
$ |
0.38 |
|
|
$ |
1.98 |
|
|
$ |
1.51 |
|
Diluted |
|
$ |
0.12 |
|
|
$ |
1.01 |
|
|
$ |
0.29 |
|
|
$ |
0.30 |
|
|
$ |
0.37 |
|
|
$ |
1.96 |
|
|
$ |
1.49 |
|
Adjusted operating income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.17 |
|
|
$ |
0.94 |
|
|
$ |
0.34 |
|
|
$ |
0.29 |
|
|
$ |
0.24 |
|
|
$ |
1.79 |
|
|
$ |
0.77 |
|
Diluted |
|
$ |
0.17 |
|
|
$ |
0.92 |
|
|
$ |
0.33 |
|
|
$ |
0.29 |
|
|
$ |
0.23 |
|
|
$ |
1.76 |
|
|
$ |
0.76 |
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
492.3 |
|
|
|
496.5 |
|
|
|
503.8 |
|
|
|
508.9 |
|
|
|
508.3 |
|
|
|
504.4 |
|
|
|
506.9 |
|
Diluted |
|
|
500.1 |
|
|
|
502.9 |
|
|
|
509.3 |
|
|
|
514.1 |
|
|
|
517.4 |
|
|
|
510.9 |
|
|
|
514.7 |
|
(1) |
Changes in fair value of market risk benefits were adjusted to exclude changes in reserves, attributed fees and
benefit payments (see page 24 for reconciliation). |
9
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Consolidated Balance Sheets
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities available-for-sale, at fair value(1) |
|
$ |
47,381 |
|
|
$ |
46,583 |
|
|
$ |
46,215 |
|
|
$ |
49,286 |
|
|
$ |
55,027 |
|
Equity securities, at fair value |
|
|
364 |
|
|
|
319 |
|
|
|
274 |
|
|
|
243 |
|
|
|
230 |
|
Commercial mortgage loans(2) |
|
|
6,915 |
|
|
|
7,032 |
|
|
|
7,086 |
|
|
|
7,088 |
|
|
|
6,938 |
|
Less: Allowance for credit losses |
|
|
(24 |
) |
|
|
(22 |
) |
|
|
(23 |
) |
|
|
(23 |
) |
|
|
(25 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loans, net |
|
|
6,891 |
|
|
|
7,010 |
|
|
|
7,063 |
|
|
|
7,065 |
|
|
|
6,913 |
|
Policy loans |
|
|
2,133 |
|
|
|
2,139 |
|
|
|
2,153 |
|
|
|
2,178 |
|
|
|
2,028 |
|
Limited partnerships |
|
|
2,456 |
|
|
|
2,331 |
|
|
|
2,195 |
|
|
|
2,123 |
|
|
|
2,007 |
|
Other invested assets |
|
|
617 |
|
|
|
566 |
|
|
|
590 |
|
|
|
573 |
|
|
|
671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments |
|
|
59,842 |
|
|
|
58,948 |
|
|
|
58,490 |
|
|
|
61,468 |
|
|
|
66,876 |
|
Cash, cash equivalents and restricted cash |
|
|
1,752 |
|
|
|
1,799 |
|
|
|
1,561 |
|
|
|
1,724 |
|
|
|
1,291 |
|
Accrued investment income |
|
|
700 |
|
|
|
643 |
|
|
|
616 |
|
|
|
553 |
|
|
|
696 |
|
Deferred acquisition costs |
|
|
2,150 |
|
|
|
2,211 |
|
|
|
2,276 |
|
|
|
2,342 |
|
|
|
2,414 |
|
Intangible assets |
|
|
203 |
|
|
|
203 |
|
|
|
209 |
|
|
|
215 |
|
|
|
223 |
|
Reinsurance recoverable |
|
|
19,606 |
|
|
|
19,059 |
|
|
|
18,906 |
|
|
|
20,659 |
|
|
|
23,406 |
|
Less: Allowance for credit losses |
|
|
(64 |
) |
|
|
(63 |
) |
|
|
(64 |
) |
|
|
(63 |
) |
|
|
(60 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinsurance recoverable, net |
|
|
19,542 |
|
|
|
18,996 |
|
|
|
18,842 |
|
|
|
20,596 |
|
|
|
23,346 |
|
Other assets |
|
|
478 |
|
|
|
488 |
|
|
|
493 |
|
|
|
521 |
|
|
|
540 |
|
Deferred tax asset |
|
|
2,004 |
|
|
|
1,968 |
|
|
|
2,115 |
|
|
|
2,520 |
|
|
|
2,967 |
|
Market risk benefit assets |
|
|
28 |
|
|
|
26 |
|
|
|
20 |
|
|
|
22 |
|
|
|
34 |
|
Separate account assets |
|
|
4,479 |
|
|
|
4,417 |
|
|
|
4,298 |
|
|
|
4,683 |
|
|
|
5,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
91,178 |
|
|
$ |
89,699 |
|
|
$ |
88,920 |
|
|
$ |
94,644 |
|
|
$ |
103,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Amortized cost of $50,461 million, $50,834 million, $51,248 million, $51,248 million and $52,280 million as of
March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively, and allowance for credit losses of $15 million as of March 31, 2023 and $ as of
December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022. |
(2) |
Net of unamortized balance of loan origination fees and costs of $4 million as of March 31,
2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022. |
10
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Consolidated Balance Sheets
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
57,558 |
|
|
$ |
55,349 |
|
|
$ |
54,666 |
|
|
$ |
60,370 |
|
|
$ |
69,833 |
|
Policyholder account balances |
|
|
16,202 |
|
|
|
16,564 |
|
|
|
16,985 |
|
|
|
17,332 |
|
|
|
17,659 |
|
Market risk benefit liabilities |
|
|
761 |
|
|
|
748 |
|
|
|
832 |
|
|
|
910 |
|
|
|
876 |
|
Liability for policy and contract claims |
|
|
665 |
|
|
|
683 |
|
|
|
669 |
|
|
|
733 |
|
|
|
809 |
|
Unearned premiums |
|
|
189 |
|
|
|
203 |
|
|
|
213 |
|
|
|
225 |
|
|
|
236 |
|
Other liabilities |
|
|
1,492 |
|
|
|
1,675 |
|
|
|
1,684 |
|
|
|
1,471 |
|
|
|
1,422 |
|
Long-term borrowings |
|
|
1,600 |
|
|
|
1,611 |
|
|
|
1,622 |
|
|
|
1,773 |
|
|
|
1,819 |
|
Separate account liabilities |
|
|
4,479 |
|
|
|
4,417 |
|
|
|
4,298 |
|
|
|
4,683 |
|
|
|
5,530 |
|
Liabilities related to discontinued
operations(1) |
|
|
7 |
|
|
|
8 |
|
|
|
6 |
|
|
|
4 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
82,953 |
|
|
|
81,258 |
|
|
|
80,975 |
|
|
|
87,501 |
|
|
|
98,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
11,863 |
|
|
|
11,869 |
|
|
|
11,865 |
|
|
|
11,859 |
|
|
|
11,857 |
|
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in the discount rate used to measure future policy benefits |
|
|
(1,633 |
) |
|
|
(406 |
) |
|
|
112 |
|
|
|
(3,175 |
) |
|
|
(8,462 |
) |
All other |
|
|
(1,225 |
) |
|
|
(2,211 |
) |
|
|
(2,747 |
) |
|
|
(121 |
) |
|
|
3,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accumulated other comprehensive income (loss) |
|
|
(2,858 |
) |
|
|
(2,617 |
) |
|
|
(2,635 |
) |
|
|
(3,296 |
) |
|
|
(4,564 |
) |
Retained earnings |
|
|
1,259 |
|
|
|
1,197 |
|
|
|
690 |
|
|
|
543 |
|
|
|
390 |
|
Treasury stock, at cost |
|
|
(2,833 |
) |
|
|
(2,764 |
) |
|
|
(2,734 |
) |
|
|
(2,715 |
) |
|
|
(2,700 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
7,432 |
|
|
|
7,686 |
|
|
|
7,187 |
|
|
|
6,392 |
|
|
|
4,984 |
|
Noncontrolling interests |
|
|
793 |
|
|
|
755 |
|
|
|
758 |
|
|
|
751 |
|
|
|
745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
8,225 |
|
|
|
8,441 |
|
|
|
7,945 |
|
|
|
7,143 |
|
|
|
5,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
91,178 |
|
|
$ |
89,699 |
|
|
$ |
88,920 |
|
|
$ |
94,644 |
|
|
$ |
103,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Liabilities related to discontinued operations relates to a liability recorded in connection with a settlement
agreement reached with AXA and other unrelated liabilities involving the sale of the companys former lifestyle protection insurance business. |
11
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Consolidated Balance Sheet by Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
|
Enact |
|
|
Long-Term Care Insurance |
|
|
Life and Annuities |
|
|
Corporate and Other(1) |
|
|
Total |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments |
|
$ |
5,611 |
|
|
$ |
35,210 |
|
|
$ |
20,112 |
|
|
$ |
1,361 |
|
|
$ |
62,294 |
|
Deferred acquisition costs and intangible assets |
|
|
36 |
|
|
|
945 |
|
|
|
1,360 |
|
|
|
12 |
|
|
|
2,353 |
|
Reinsurance recoverable, net |
|
|
|
|
|
|
7,604 |
|
|
|
11,938 |
|
|
|
|
|
|
|
19,542 |
|
Deferred tax and other assets |
|
|
194 |
|
|
|
1,763 |
|
|
|
214 |
|
|
|
311 |
(2) |
|
|
2,482 |
|
Market risk benefit assets |
|
|
|
|
|
|
|
|
|
|
28 |
|
|
|
|
|
|
|
28 |
|
Separate account assets |
|
|
|
|
|
|
|
|
|
|
4,479 |
|
|
|
|
|
|
|
4,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,841 |
|
|
$ |
45,522 |
|
|
$ |
38,131 |
|
|
$ |
1,684 |
|
|
$ |
91,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
|
|
|
$ |
43,371 |
|
|
$ |
14,187 |
|
|
$ |
|
|
|
$ |
57,558 |
|
Policyholder account balances |
|
|
|
|
|
|
|
|
|
|
16,202 |
|
|
|
|
|
|
|
16,202 |
|
Market risk benefit liabilities |
|
|
|
|
|
|
|
|
|
|
761 |
|
|
|
|
|
|
|
761 |
|
Liability for policy and contract claims |
|
|
502 |
|
|
|
|
|
|
|
157 |
|
|
|
6 |
|
|
|
665 |
|
Unearned premiums |
|
|
189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
189 |
|
Other liabilities |
|
|
100 |
|
|
|
658 |
|
|
|
287 |
|
|
|
447 |
|
|
|
1,492 |
|
Borrowings |
|
|
743 |
|
|
|
|
|
|
|
|
|
|
|
857 |
|
|
|
1,600 |
|
Separate account liabilities |
|
|
|
|
|
|
|
|
|
|
4,479 |
|
|
|
|
|
|
|
4,479 |
|
Liabilities related to discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,534 |
|
|
|
44,029 |
|
|
|
36,073 |
|
|
|
1,317 |
|
|
|
82,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated equity, excluding accumulated other comprehensive income (loss) |
|
|
3,776 |
|
|
|
2,632 |
|
|
|
3,034 |
|
|
|
848 |
|
|
|
10,290 |
|
Allocated accumulated other comprehensive income (loss) |
|
|
(262 |
) |
|
|
(1,139 |
) |
|
|
(976 |
) |
|
|
(481 |
) |
|
|
(2,858 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
3,514 |
|
|
|
1,493 |
|
|
|
2,058 |
|
|
|
367 |
|
|
|
7,432 |
|
Noncontrolling interests |
|
|
793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
4,307 |
|
|
|
1,493 |
|
|
|
2,058 |
|
|
|
367 |
|
|
|
8,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
5,841 |
|
|
$ |
45,522 |
|
|
$ |
38,131 |
|
|
$ |
1,684 |
|
|
$ |
91,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes inter-segment eliminations and other businesses, including start-up growth initiatives and certain
international businesses, that are managed outside the operating segments. |
(2) |
Deferred tax and other assets in Corporate and Other includes holding company deferred tax assets of $174
million (comprised of Genworth Financial, Inc. and Genworth Holdings). |
12
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Consolidated Balance Sheet by Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
|
Enact |
|
|
Long-Term Care Insurance |
|
|
Life and Annuities |
|
|
Corporate and Other(1) |
|
|
Total |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments |
|
$ |
5,458 |
|
|
$ |
34,334 |
|
|
$ |
20,120 |
|
|
$ |
1,478 |
|
|
$ |
61,390 |
|
Deferred acquisition costs and intangible assets |
|
|
35 |
|
|
|
959 |
|
|
|
1,413 |
|
|
|
7 |
|
|
|
2,414 |
|
Reinsurance recoverable, net |
|
|
|
|
|
|
7,301 |
|
|
|
11,695 |
|
|
|
|
|
|
|
18,996 |
|
Deferred tax and other assets |
|
|
219 |
|
|
|
1,547 |
|
|
|
304 |
|
|
|
386 |
(2) |
|
|
2,456 |
|
Market risk benefit assets |
|
|
|
|
|
|
|
|
|
|
26 |
|
|
|
|
|
|
|
26 |
|
Separate account assets |
|
|
|
|
|
|
|
|
|
|
4,417 |
|
|
|
|
|
|
|
4,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,712 |
|
|
$ |
44,141 |
|
|
$ |
37,975 |
|
|
$ |
1,871 |
|
|
$ |
89,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
|
|
|
$ |
41,399 |
|
|
$ |
13,950 |
|
|
$ |
|
|
|
$ |
55,349 |
|
Policyholder account balances |
|
|
|
|
|
|
|
|
|
|
16,564 |
|
|
|
|
|
|
|
16,564 |
|
Market risk benefit liabilities |
|
|
|
|
|
|
|
|
|
|
748 |
|
|
|
|
|
|
|
748 |
|
Liability for policy and contract claims |
|
|
519 |
|
|
|
|
|
|
|
158 |
|
|
|
6 |
|
|
|
683 |
|
Unearned premiums |
|
|
203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
203 |
|
Other liabilities |
|
|
136 |
|
|
|
770 |
|
|
|
284 |
|
|
|
485 |
|
|
|
1,675 |
|
Borrowings |
|
|
743 |
|
|
|
|
|
|
|
|
|
|
|
868 |
|
|
|
1,611 |
|
Separate account liabilities |
|
|
|
|
|
|
|
|
|
|
4,417 |
|
|
|
|
|
|
|
4,417 |
|
Liabilities related to discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,601 |
|
|
|
42,169 |
|
|
|
36,121 |
|
|
|
1,367 |
|
|
|
81,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated equity, excluding accumulated other comprehensive income (loss) |
|
|
3,669 |
|
|
|
2,615 |
|
|
|
3,030 |
|
|
|
989 |
|
|
|
10,303 |
|
Allocated accumulated other comprehensive income (loss) |
|
|
(313 |
) |
|
|
(643 |
) |
|
|
(1,176 |
) |
|
|
(485 |
) |
|
|
(2,617 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
3,356 |
|
|
|
1,972 |
|
|
|
1,854 |
|
|
|
504 |
|
|
|
7,686 |
|
Noncontrolling interests |
|
|
755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
4,111 |
|
|
|
1,972 |
|
|
|
1,854 |
|
|
|
504 |
|
|
|
8,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
5,712 |
|
|
$ |
44,141 |
|
|
$ |
37,975 |
|
|
$ |
1,871 |
|
|
$ |
89,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes inter-segment eliminations and other businesses, including start-up growth initiatives and certain
international businesses, that are managed outside the operating segments. |
(2) |
Deferred tax and other assets in Corporate and Other includes holding company deferred tax assets of $231
million (comprised of Genworth Financial, Inc. and Genworth Holdings). |
13
Enact Segment
(There were no changes to the companys Enact segment due to the adoption of LDTI)
14
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Adjusted Operating Income and SalesEnact Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
235 |
|
|
$ |
233 |
|
|
$ |
235 |
|
|
$ |
238 |
|
|
$ |
234 |
|
|
$ |
940 |
|
Net investment income |
|
|
46 |
|
|
|
45 |
|
|
|
39 |
|
|
|
36 |
|
|
|
35 |
|
|
|
155 |
|
Net investment gains (losses) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(2 |
) |
Policy fees and other income |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
281 |
|
|
|
277 |
|
|
|
275 |
|
|
|
273 |
|
|
|
270 |
|
|
|
1,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
(11 |
) |
|
|
18 |
|
|
|
(40 |
) |
|
|
(62 |
) |
|
|
(10 |
) |
|
|
(94 |
) |
Acquisition and operating expenses, net of deferrals |
|
|
52 |
|
|
|
60 |
|
|
|
55 |
|
|
|
58 |
|
|
|
54 |
|
|
|
227 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
3 |
|
|
|
2 |
|
|
|
4 |
|
|
|
3 |
|
|
|
3 |
|
|
|
12 |
|
Interest expense |
|
|
13 |
|
|
|
14 |
|
|
|
12 |
|
|
|
13 |
|
|
|
13 |
|
|
|
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
57 |
|
|
|
94 |
|
|
|
31 |
|
|
|
12 |
|
|
|
60 |
|
|
|
197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
224 |
|
|
|
183 |
|
|
|
244 |
|
|
|
261 |
|
|
|
210 |
|
|
|
898 |
|
Provision for income taxes |
|
|
49 |
|
|
|
39 |
|
|
|
53 |
|
|
|
57 |
|
|
|
45 |
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
175 |
|
|
|
144 |
|
|
|
191 |
|
|
|
204 |
|
|
|
165 |
|
|
|
704 |
|
Less: net income from continuing operations attributable to noncontrolling interests |
|
|
32 |
|
|
|
27 |
|
|
|
35 |
|
|
|
38 |
|
|
|
30 |
|
|
|
130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON
STOCKHOLDERS |
|
|
143 |
|
|
|
117 |
|
|
|
156 |
|
|
|
166 |
|
|
|
135 |
|
|
|
574 |
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S
COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
2 |
|
Expenses related to restructuring |
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
Taxes on adjustments |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
143 |
|
|
$ |
120 |
|
|
$ |
156 |
|
|
$ |
167 |
|
|
$ |
135 |
|
|
$ |
578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary New Insurance Written (NIW) |
|
$ |
13,154 |
|
|
$ |
15,145 |
|
|
$ |
15,069 |
|
|
$ |
17,448 |
|
|
$ |
18,823 |
|
|
$ |
66,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Primary New Insurance Written MetricsEnact Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
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 |
|
Payment Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monthly |
|
$ |
12,809 |
|
|
|
97 |
% |
|
$ |
13,745 |
|
|
|
91 |
% |
|
$ |
14,138 |
|
|
|
94 |
% |
|
$ |
16,169 |
|
|
|
93 |
% |
|
$ |
17,071 |
|
|
|
91 |
% |
Single |
|
|
318 |
|
|
|
3 |
|
|
|
1,368 |
|
|
|
9 |
|
|
|
890 |
|
|
|
6 |
|
|
|
1,218 |
|
|
|
7 |
|
|
|
1,690 |
|
|
|
9 |
|
Other(1) |
|
|
27 |
|
|
|
|
|
|
|
32 |
|
|
|
|
|
|
|
41 |
|
|
|
|
|
|
|
61 |
|
|
|
|
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase |
|
$ |
12,761 |
|
|
|
97 |
% |
|
$ |
14,744 |
|
|
|
97 |
% |
|
$ |
14,634 |
|
|
|
97 |
% |
|
$ |
16,802 |
|
|
|
96 |
% |
|
$ |
17,326 |
|
|
|
92 |
% |
Refinance |
|
|
393 |
|
|
|
3 |
|
|
|
401 |
|
|
|
3 |
|
|
|
435 |
|
|
|
3 |
|
|
|
646 |
|
|
|
4 |
|
|
|
1,497 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Scores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over 760 |
|
$ |
6,004 |
|
|
|
46 |
% |
|
$ |
6,951 |
|
|
|
46 |
% |
|
$ |
6,948 |
|
|
|
46 |
% |
|
$ |
7,981 |
|
|
|
45 |
% |
|
$ |
8,359 |
|
|
|
45 |
% |
740 - 759 |
|
|
2,268 |
|
|
|
17 |
|
|
|
2,709 |
|
|
|
18 |
|
|
|
2,554 |
|
|
|
17 |
|
|
|
2,916 |
|
|
|
17 |
|
|
|
3,085 |
|
|
|
16 |
|
720 - 739 |
|
|
1,817 |
|
|
|
14 |
|
|
|
2,226 |
|
|
|
15 |
|
|
|
2,106 |
|
|
|
14 |
|
|
|
2,530 |
|
|
|
15 |
|
|
|
2,515 |
|
|
|
13 |
|
700 - 719 |
|
|
1,296 |
|
|
|
10 |
|
|
|
1,489 |
|
|
|
10 |
|
|
|
1,531 |
|
|
|
10 |
|
|
|
1,917 |
|
|
|
11 |
|
|
|
1,952 |
|
|
|
10 |
|
680 - 699 |
|
|
954 |
|
|
|
7 |
|
|
|
1,035 |
|
|
|
7 |
|
|
|
1,085 |
|
|
|
7 |
|
|
|
1,099 |
|
|
|
6 |
|
|
|
1,316 |
|
|
|
7 |
|
660 - 679(2) |
|
|
517 |
|
|
|
4 |
|
|
|
478 |
|
|
|
3 |
|
|
|
527 |
|
|
|
3 |
|
|
|
598 |
|
|
|
3 |
|
|
|
931 |
|
|
|
5 |
|
640 - 659 |
|
|
229 |
|
|
|
2 |
|
|
|
189 |
|
|
|
1 |
|
|
|
234 |
|
|
|
2 |
|
|
|
297 |
|
|
|
2 |
|
|
|
486 |
|
|
|
3 |
|
620 - 639 |
|
|
65 |
|
|
|
|
|
|
|
66 |
|
|
|
|
|
|
|
79 |
|
|
|
1 |
|
|
|
106 |
|
|
|
1 |
|
|
|
173 |
|
|
|
1 |
|
<620 |
|
|
4 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan-To-Value Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95.01% and above |
|
$ |
2,106 |
|
|
|
16 |
% |
|
$ |
2,423 |
|
|
|
16 |
% |
|
$ |
1,741 |
|
|
|
11 |
% |
|
$ |
2,177 |
|
|
|
12 |
% |
|
$ |
3,146 |
|
|
|
17 |
% |
90.01% to 95.00% |
|
|
4,928 |
|
|
|
38 |
|
|
|
5,684 |
|
|
|
37 |
|
|
|
6,184 |
|
|
|
41 |
|
|
|
7,458 |
|
|
|
43 |
|
|
|
6,682 |
|
|
|
35 |
|
85.01% to 90.00% |
|
|
4,390 |
|
|
|
33 |
|
|
|
4,971 |
|
|
|
33 |
|
|
|
5,094 |
|
|
|
34 |
|
|
|
5,207 |
|
|
|
30 |
|
|
|
5,620 |
|
|
|
30 |
|
85.00% and below |
|
|
1,730 |
|
|
|
13 |
|
|
|
2,067 |
|
|
|
14 |
|
|
|
2,050 |
|
|
|
14 |
|
|
|
2,606 |
|
|
|
15 |
|
|
|
3,375 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-To-Income Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45.01% and above |
|
$ |
3,538 |
|
|
|
27 |
% |
|
$ |
4,294 |
|
|
|
28 |
% |
|
$ |
3,728 |
|
|
|
25 |
% |
|
$ |
4,067 |
|
|
|
23 |
% |
|
$ |
4,452 |
|
|
|
24 |
% |
38.01% to 45.00% |
|
|
4,940 |
|
|
|
38 |
|
|
|
5,518 |
|
|
|
37 |
|
|
|
5,681 |
|
|
|
38 |
|
|
|
6,436 |
|
|
|
37 |
|
|
|
6,361 |
|
|
|
34 |
|
38.00% and below |
|
|
4,676 |
|
|
|
35 |
|
|
|
5,333 |
|
|
|
35 |
|
|
|
5,660 |
|
|
|
37 |
|
|
|
6,945 |
|
|
|
40 |
|
|
|
8,010 |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes loans with annual and split payment types. |
(2) |
Loans with unknown FICO scores are included in the 660-679 category. |
16
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Other MetricsEnact Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
|
|
|
|
|
|
Primary Insurance
In-Force(1) |
|
$ |
252,516 |
|
|
$ |
248,262 |
|
|
$ |
241,813 |
|
|
$ |
237,563 |
|
|
$ |
231,853 |
|
|
|
|
|
|
|
|
|
|
|
|
Risk In-Force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary(2) |
|
$ |
64,106 |
|
|
$ |
62,791 |
|
|
$ |
61,124 |
|
|
$ |
59,911 |
|
|
$ |
58,295 |
|
|
|
|
|
Pool |
|
|
76 |
|
|
|
79 |
|
|
|
84 |
|
|
|
89 |
|
|
|
97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Risk In-Force |
|
$ |
64,182 |
|
|
$ |
62,870 |
|
|
$ |
61,208 |
|
|
$ |
60,000 |
|
|
$ |
58,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense Ratio(3) |
|
|
23 |
% |
|
|
27 |
% |
|
|
25 |
% |
|
|
26 |
% |
|
|
24 |
% |
|
|
25 |
% |
|
|
|
|
|
|
|
Primary Persistency Rate |
|
|
85 |
% |
|
|
86 |
% |
|
|
82 |
% |
|
|
80 |
% |
|
|
76 |
% |
|
|
80 |
% |
|
|
|
|
|
|
|
Combined Risk To Capital
Ratio(4) |
|
|
12.6:1 |
|
|
|
12.8:1 |
|
|
|
12.3:1 |
|
|
|
12.6:1 |
|
|
|
12.0:1 |
|
|
|
|
|
|
|
|
|
|
|
|
EMICO Risk To Capital
Ratio(4),(5) |
|
|
12.7:1 |
|
|
|
12.9:1 |
|
|
|
12.3:1 |
|
|
|
12.6:1 |
|
|
|
12.1:1 |
|
|
|
|
|
|
|
|
|
|
|
|
PMIERs Available Assets(6) |
|
$ |
5,357 |
|
|
$ |
5,206 |
|
|
$ |
5,292 |
|
|
$ |
5,147 |
|
|
$ |
5,222 |
|
|
|
|
|
|
|
|
|
|
|
|
PMIERs Required Assets(6) |
|
$ |
3,259 |
|
|
$ |
3,156 |
|
|
$ |
3,043 |
|
|
$ |
3,100 |
|
|
$ |
2,961 |
|
|
|
|
|
|
|
|
|
|
|
|
Available Assets Above PMIERs
Requirements(6) |
|
$ |
2,098 |
|
|
$ |
2,050 |
|
|
$ |
2,249 |
|
|
$ |
2,047 |
|
|
$ |
2,261 |
|
|
|
|
|
|
|
|
|
|
|
|
PMIERs Sufficiency Ratio(6) |
|
|
164 |
% |
|
|
165 |
% |
|
|
174 |
% |
|
|
166 |
% |
|
|
176 |
% |
|
|
|
|
|
|
|
|
|
|
|
Average Primary Loan Size (in thousands) |
|
$ |
262 |
|
|
$ |
259 |
|
|
$ |
255 |
|
|
$ |
251 |
|
|
$ |
246 |
|
|
|
|
|
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 companys U.S. mortgage
insurance subsidiaries insure. |
(2) |
Primary risk in-force represents risk on current loan balances as provided by servicers, lenders and
investors. |
(3) |
The ratio of an insurers 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. |
(4) |
Certain states limit a private mortgage insurers risk in-force to 25 times the total of the
insurers 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 companys U.S. mortgage insurance subsidiaries. |
(5) |
Enact Mortgage Insurance Corporation (EMICO), the companys principal U.S. mortgage insurance subsidiary.
|
(6) |
The Private Mortgage Insurer Eligibility Requirements (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. The PMIERs sufficiency ratios for the four quarters of 2022 did not take into
consideration the impact of restrictions previously imposed by the government-sponsored enterprises on EMICO. |
17
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Loss MetricsEnact Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Average Paid Claim (in
thousands)(1) |
|
$ |
46.9 |
|
|
$ |
48.7 |
|
|
$ |
42.2 |
|
|
$ |
50.1 |
|
|
$ |
51.6 |
|
|
|
|
|
Average Reserve Per Primary Delinquency (in thousands)(2) |
|
$ |
24.8 |
|
|
$ |
24.0 |
|
|
$ |
25.2 |
|
|
$ |
27.0 |
|
|
$ |
26.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Reserves: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct primary case |
|
$ |
462 |
|
|
$ |
479 |
|
|
$ |
476 |
|
|
$ |
526 |
|
|
$ |
591 |
|
|
|
|
|
All other(3) |
|
|
40 |
|
|
|
40 |
|
|
|
34 |
|
|
|
33 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reserves |
|
$ |
502 |
|
|
$ |
519 |
|
|
$ |
510 |
|
|
$ |
559 |
|
|
$ |
625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Reserves |
|
$ |
519 |
|
|
$ |
510 |
|
|
$ |
559 |
|
|
$ |
625 |
|
|
$ |
641 |
|
|
$ |
641 |
|
Paid claims |
|
|
(6 |
) |
|
|
(9 |
) |
|
|
(9 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
|
|
(28 |
) |
Increase (decrease) in reserves |
|
|
(11 |
) |
|
|
18 |
|
|
|
(40 |
) |
|
|
(62 |
) |
|
|
(10 |
) |
|
|
(94 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Reserves |
|
$ |
502 |
|
|
$ |
519 |
|
|
$ |
510 |
|
|
$ |
559 |
|
|
$ |
625 |
|
|
$ |
519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Ratio(4) |
|
|
(5 |
)% |
|
|
8 |
% |
|
|
(17 |
)% |
|
|
(26 |
)% |
|
|
(4 |
)% |
|
|
(10 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and fourth quarters of 2022 includes payments in relation to agreements on
non-performing loans. |
(2) |
Direct primary 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. |
18
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Delinquency MetricsEnact Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Primary Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary loans in-force |
|
|
965,544 |
|
|
|
960,306 |
|
|
|
949,052 |
|
|
|
946,891 |
|
|
|
941,689 |
|
|
|
|
|
Primary delinquent loans |
|
|
18,633 |
|
|
|
19,943 |
|
|
|
18,856 |
|
|
|
19,513 |
|
|
|
22,571 |
|
|
|
|
|
Primary delinquency rate |
|
|
1.93 |
% |
|
|
2.08 |
% |
|
|
1.99 |
% |
|
|
2.06 |
% |
|
|
2.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
Beginning Number of Primary Delinquencies |
|
|
19,943 |
|
|
|
18,856 |
|
|
|
19,513 |
|
|
|
22,571 |
|
|
|
24,820 |
|
|
|
24,820 |
|
New delinquencies |
|
|
9,599 |
|
|
|
10,304 |
|
|
|
9,121 |
|
|
|
7,847 |
|
|
|
8,724 |
|
|
|
35,996 |
|
Delinquency cures |
|
|
(10,771 |
) |
|
|
(9,024 |
) |
|
|
(9,588 |
) |
|
|
(10,806 |
) |
|
|
(10,860 |
) |
|
|
(40,278 |
) |
Paid claims |
|
|
(126 |
) |
|
|
(190 |
) |
|
|
(187 |
) |
|
|
(90 |
) |
|
|
(107 |
) |
|
|
(574 |
) |
Rescissions and claim denials |
|
|
(12 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(6 |
) |
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Number of Primary Delinquencies |
|
|
18,633 |
|
|
|
19,943 |
|
|
|
18,856 |
|
|
|
19,513 |
|
|
|
22,571 |
|
|
|
19,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of Cures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported delinquent and cured-intraquarter |
|
|
2,016 |
|
|
|
1,489 |
|
|
|
1,598 |
|
|
|
1,306 |
|
|
|
1,581 |
|
|
|
|
|
Number of missed payments delinquent prior to cure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 payments or less |
|
|
5,238 |
|
|
|
4,179 |
|
|
|
3,719 |
|
|
|
4,037 |
|
|
|
3,902 |
|
|
|
|
|
4 - 11 payments |
|
|
2,431 |
|
|
|
2,001 |
|
|
|
2,279 |
|
|
|
2,484 |
|
|
|
2,315 |
|
|
|
|
|
12 payments or more |
|
|
1,086 |
|
|
|
1,355 |
|
|
|
1,992 |
|
|
|
2,979 |
|
|
|
3,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
10,771 |
|
|
|
9,024 |
|
|
|
9,588 |
|
|
|
10,806 |
|
|
|
10,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Delinquencies by Missed Payment Status |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 payments or less |
|
|
7,876 |
|
|
|
8,920 |
|
|
|
7,446 |
|
|
|
6,442 |
|
|
|
6,837 |
|
|
|
|
|
4 - 11 payments |
|
|
6,714 |
|
|
|
6,466 |
|
|
|
6,119 |
|
|
|
6,372 |
|
|
|
6,875 |
|
|
|
|
|
12 payments or more |
|
|
4,043 |
|
|
|
4,557 |
|
|
|
5,291 |
|
|
|
6,699 |
|
|
|
8,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Delinquencies |
|
|
18,633 |
|
|
|
19,943 |
|
|
|
18,856 |
|
|
|
19,513 |
|
|
|
22,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
Direct Primary Case Reserves(1) and Percentage
Reserved by Payment Status |
|
Direct Primary Case Reserves |
|
|
Risk In-Force |
|
|
Reserves as % of Risk In-Force |
|
|
|
|
|
|
|
|
|
|
3 payments or less in default |
|
$ |
67 |
|
|
$ |
462 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
4 - 11 payments in default |
|
|
182 |
|
|
|
423 |
|
|
|
43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
12 payments or more in default |
|
|
213 |
|
|
|
220 |
|
|
|
97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
462 |
|
|
$ |
1,105 |
|
|
|
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Direct Primary Case Reserves(1) and Percentage
Reserved by Payment Status |
|
Direct Primary Case Reserves |
|
|
Risk In-Force |
|
|
Reserves as % of Risk In-Force |
|
|
|
|
|
|
|
|
|
|
3 payments or less in default |
|
$ |
69 |
|
|
$ |
509 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
4 - 11 payments in default |
|
|
166 |
|
|
|
390 |
|
|
|
43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
12 payments or more in default |
|
|
244 |
|
|
|
248 |
|
|
|
98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
479 |
|
|
$ |
1,147 |
|
|
|
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Direct primary case reserves exclude loss adjustment expenses, pool, incurred but not reported and reinsurance
reserves. |
19
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Portfolio Quality MetricsEnact Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
Policy Year |
|
% of Direct Primary Case Reserves(1) |
|
|
Primary Insurance In-Force |
|
|
% of Total |
|
|
Primary Risk In-Force |
|
|
% of Total |
|
|
Delinquency Rate |
|
2008 and prior |
|
|
25 |
% |
|
$ |
6,377 |
|
|
|
3 |
% |
|
$ |
1,643 |
|
|
|
3 |
% |
|
|
8.81 |
% |
2009-2015 |
|
|
7 |
|
|
|
4,659 |
|
|
|
2 |
|
|
|
1,238 |
|
|
|
2 |
|
|
|
4.03 |
% |
2016 |
|
|
5 |
|
|
|
5,744 |
|
|
|
2 |
|
|
|
1,538 |
|
|
|
2 |
|
|
|
3.01 |
% |
2017 |
|
|
6 |
|
|
|
6,201 |
|
|
|
2 |
|
|
|
1,632 |
|
|
|
3 |
|
|
|
3.53 |
% |
2018 |
|
|
7 |
|
|
|
6,570 |
|
|
|
3 |
|
|
|
1,672 |
|
|
|
3 |
|
|
|
4.08 |
% |
2019 |
|
|
10 |
|
|
|
15,691 |
|
|
|
6 |
|
|
|
3,989 |
|
|
|
6 |
|
|
|
2.57 |
% |
2020 |
|
|
16 |
|
|
|
52,389 |
|
|
|
21 |
|
|
|
13,484 |
|
|
|
21 |
|
|
|
1.42 |
% |
2021 |
|
|
18 |
|
|
|
79,377 |
|
|
|
31 |
|
|
|
19,917 |
|
|
|
31 |
|
|
|
1.23 |
% |
2022 |
|
|
6 |
|
|
|
62,481 |
|
|
|
25 |
|
|
|
15,647 |
|
|
|
24 |
|
|
|
0.74 |
% |
2023 |
|
|
|
|
|
|
13,027 |
|
|
|
5 |
|
|
|
3,346 |
|
|
|
5 |
|
|
|
0.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
100 |
% |
|
$ |
252,516 |
|
|
|
100 |
% |
|
$ |
64,106 |
|
|
|
100 |
% |
|
|
1.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
March 31, 2022 |
|
|
|
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 |
|
$ |
11,545 |
|
|
|
18 |
% |
|
$ |
11,136 |
|
|
|
18 |
% |
|
$ |
10,379 |
|
|
|
18 |
% |
90.01% to 95.00% |
|
|
30,589 |
|
|
|
48 |
|
|
|
30,079 |
|
|
|
48 |
|
|
|
27,987 |
|
|
|
48 |
|
85.01% to 90.00% |
|
|
18,054 |
|
|
|
28 |
|
|
|
17,621 |
|
|
|
28 |
|
|
|
16,082 |
|
|
|
27 |
|
85.00% and below |
|
|
3,918 |
|
|
|
6 |
|
|
|
3,955 |
|
|
|
6 |
|
|
|
3,847 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
64,106 |
|
|
|
100 |
% |
|
$ |
62,791 |
|
|
|
100 |
% |
|
$ |
58,295 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
March 31, 2022 |
|
|
|
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 |
|
$ |
26,480 |
|
|
|
41 |
% |
|
$ |
25,807 |
|
|
|
41 |
% |
|
$ |
23,326 |
|
|
|
40 |
% |
740 - 759 |
|
|
10,418 |
|
|
|
16 |
|
|
|
10,154 |
|
|
|
16 |
|
|
|
9,267 |
|
|
|
16 |
|
720 - 739 |
|
|
9,126 |
|
|
|
14 |
|
|
|
8,931 |
|
|
|
14 |
|
|
|
8,224 |
|
|
|
14 |
|
700 - 719 |
|
|
7,406 |
|
|
|
12 |
|
|
|
7,317 |
|
|
|
12 |
|
|
|
6,974 |
|
|
|
12 |
|
680 - 699 |
|
|
5,481 |
|
|
|
9 |
|
|
|
5,428 |
|
|
|
9 |
|
|
|
5,334 |
|
|
|
9 |
|
660 - 679(2) |
|
|
2,809 |
|
|
|
4 |
|
|
|
2,767 |
|
|
|
5 |
|
|
|
2,715 |
|
|
|
5 |
|
640 - 659 |
|
|
1,549 |
|
|
|
3 |
|
|
|
1,540 |
|
|
|
2 |
|
|
|
1,550 |
|
|
|
3 |
|
620 - 639 |
|
|
660 |
|
|
|
1 |
|
|
|
665 |
|
|
|
1 |
|
|
|
699 |
|
|
|
1 |
|
<620 |
|
|
177 |
|
|
|
|
|
|
|
182 |
|
|
|
|
|
|
|
206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
64,106 |
|
|
|
100 |
% |
|
$ |
62,791 |
|
|
|
100 |
% |
|
$ |
58,295 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Direct primary case reserves exclude loss adjustment expenses, pool, incurred but not reported and reinsurance
reserves. |
(2) |
Loans with unknown FICO scores are included in the 660-679 category. |
20
Long-Term Care
Insurance Segment
21
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Adjusted Operating Income (Loss)Long-Term Care Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
1Q |
|
|
4Q(1) |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
Full Year |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
616 |
|
|
$ |
639 |
|
|
$ |
637 |
|
|
$ |
617 |
|
|
$ |
607 |
|
|
$ |
2,500 |
|
|
$ |
2,561 |
|
Net investment income |
|
|
473 |
|
|
|
470 |
|
|
|
497 |
|
|
|
486 |
|
|
|
447 |
|
|
|
1,900 |
|
|
|
2,027 |
|
Net investment gains (losses) |
|
|
9 |
|
|
|
20 |
|
|
|
(47 |
) |
|
|
5 |
|
|
|
41 |
|
|
|
19 |
|
|
|
257 |
|
Policy fees and other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,098 |
|
|
|
1,129 |
|
|
|
1,087 |
|
|
|
1,108 |
|
|
|
1,095 |
|
|
|
4,419 |
|
|
|
4,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
940 |
|
|
|
963 |
|
|
|
955 |
|
|
|
941 |
|
|
|
923 |
|
|
|
3,782 |
|
|
|
3,794 |
|
Liability remeasurement (gains) losses |
|
|
5 |
|
|
|
(464 |
) |
|
|
|
|
|
|
28 |
|
|
|
(65 |
) |
|
|
(501 |
) |
|
|
2 |
|
Acquisition and operating expenses, net of deferrals |
|
|
162 |
|
|
|
145 |
|
|
|
112 |
|
|
|
100 |
|
|
|
140 |
|
|
|
497 |
|
|
|
636 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
18 |
|
|
|
18 |
|
|
|
19 |
|
|
|
18 |
|
|
|
19 |
|
|
|
74 |
|
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
1,125 |
|
|
|
662 |
|
|
|
1,086 |
|
|
|
1,087 |
|
|
|
1,017 |
|
|
|
3,852 |
|
|
|
4,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(27) |
|
|
|
467 |
|
|
|
1 |
|
|
|
21 |
|
|
|
78 |
|
|
|
567 |
|
|
|
338 |
|
Provision for income taxes |
|
|
2 |
|
|
|
121 |
|
|
|
2 |
|
|
|
6 |
|
|
|
19 |
|
|
|
148 |
|
|
|
101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(29) |
|
|
|
346 |
|
|
|
(1 |
) |
|
|
15 |
|
|
|
59 |
|
|
|
419 |
|
|
|
237 |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
(9) |
|
|
|
(20 |
) |
|
|
47 |
|
|
|
(5 |
) |
|
|
(41 |
) |
|
|
(19 |
) |
|
|
(257 |
) |
Expenses related to restructuring |
|
|
(1) |
|
|
|
(2 |
) |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
(1 |
) |
|
|
12 |
|
Taxes on adjustments |
|
|
2 |
|
|
|
4 |
|
|
|
(9 |
) |
|
|
|
|
|
|
9 |
|
|
|
4 |
|
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME (LOSS) |
|
$ |
(37 |
) |
|
$ |
328 |
|
|
$ |
37 |
|
|
$ |
11 |
|
|
$ |
27 |
|
|
$ |
403 |
|
|
$ |
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability remeasurement (gains) losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow assumption updates(2) |
|
$ |
21 |
|
|
$ |
(508 |
) |
|
$ |
(11 |
) |
|
$ |
(20 |
) |
|
$ |
(2 |
) |
|
$ |
(541 |
) |
|
$ |
189 |
|
Actual to expected experience |
|
|
(16) |
|
|
|
44 |
|
|
|
11 |
|
|
|
48 |
|
|
|
(63 |
) |
|
|
40 |
|
|
|
(187 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
5 |
|
|
$ |
(464 |
) |
|
$ |
|
|
|
$ |
28 |
|
|
$ |
(65 |
) |
|
$ |
(501 |
) |
|
$ |
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
In the fourth quarter of 2022, the liability remeasurement gain of $464 million in the companys
long-term care insurance business reflected favorable assumption updates of $508 million, largely from an update to legal settlement elections attributable to the inclusion of a second legal settlement and the resulting expected reserve reduction.
This settlement, comprised of PCS I and PCS II policies, represents approximately 15% of the overall block and impacts older unprofitable capped cohorts. While a favorable assumption impact was recognized in the fourth quarter of 2022, differences
between actual experience versus expectations will flow through earnings in subsequent periods, as well as settlement litigation costs and expenses which are separately recorded in acquisition and operating expenses, net of deferrals, as incurred.
The companys long-term care insurance business also updated its interest rate assumption to reflect the impact of the higher interest rate environment. |
(2) |
In 2021, unfavorable assumption updates of $189 million in the fourth quarter of 2021 related primarily to an
update to the benefit utilization trend, which drove significant updates to the in-force rate action plan and related assumptions. Given the expected future increases in cost of care, the company expected its long-term benefit utilization to trend
higher than previously assumed. |
22
Life and
Annuities Segment
23
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Adjusted Operating Income (Loss)Life and Annuities Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
Full Year |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
62 |
|
|
$ |
45 |
|
|
$ |
55 |
|
|
$ |
60 |
|
|
$ |
74 |
|
|
$ |
234 |
|
|
$ |
(136 |
) |
Net investment income |
|
|
264 |
|
|
|
268 |
|
|
|
271 |
|
|
|
265 |
|
|
|
279 |
|
|
|
1,083 |
|
|
|
1,195 |
|
Net investment gains (losses) |
|
|
(10) |
|
|
|
(3 |
) |
|
|
(15 |
) |
|
|
|
|
|
|
14 |
|
|
|
(4 |
) |
|
|
74 |
|
Policy fees and other income |
|
|
163 |
|
|
|
167 |
|
|
|
169 |
|
|
|
164 |
|
|
|
169 |
|
|
|
669 |
|
|
|
718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
479 |
|
|
|
477 |
|
|
|
480 |
|
|
|
489 |
|
|
|
536 |
|
|
|
1,982 |
|
|
|
1,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
246 |
|
|
|
226 |
|
|
|
247 |
|
|
|
(108 |
) |
|
|
255 |
|
|
|
620 |
|
|
|
688 |
|
Liability remeasurement (gains) losses |
|
|
17 |
|
|
|
(12 |
) |
|
|
14 |
|
|
|
1 |
|
|
|
24 |
|
|
|
27 |
|
|
|
134 |
|
Changes in fair value of market risk benefits and associated hedges |
|
|
17 |
|
|
|
(56 |
) |
|
|
(27 |
) |
|
|
20 |
|
|
|
(41 |
) |
|
|
(104 |
) |
|
|
(160 |
) |
Interest credited |
|
|
126 |
|
|
|
125 |
|
|
|
128 |
|
|
|
126 |
|
|
|
125 |
|
|
|
504 |
|
|
|
511 |
|
Acquisition and operating expenses, net of deferrals |
|
|
53 |
|
|
|
54 |
|
|
|
57 |
|
|
|
416 |
|
|
|
77 |
|
|
|
604 |
|
|
|
233 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
51 |
|
|
|
54 |
|
|
|
57 |
|
|
|
63 |
|
|
|
66 |
|
|
|
240 |
|
|
|
291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
510 |
|
|
|
391 |
|
|
|
476 |
|
|
|
518 |
|
|
|
506 |
|
|
|
1,891 |
|
|
|
1,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(31) |
|
|
|
86 |
|
|
|
4 |
|
|
|
(29 |
) |
|
|
30 |
|
|
|
91 |
|
|
|
154 |
|
Provision (benefit) for income taxes |
|
|
(7) |
|
|
|
17 |
|
|
|
|
|
|
|
(7 |
) |
|
|
6 |
|
|
|
16 |
|
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(24) |
|
|
|
69 |
|
|
|
4 |
|
|
|
(22 |
) |
|
|
24 |
|
|
|
75 |
|
|
|
124 |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
10 |
|
|
|
3 |
|
|
|
15 |
|
|
|
|
|
|
|
(14 |
) |
|
|
4 |
|
|
|
(74 |
) |
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges(1) |
|
|
14 |
|
|
|
(64 |
) |
|
|
(32 |
) |
|
|
8 |
|
|
|
(54 |
) |
|
|
(142 |
) |
|
|
(210 |
) |
Expenses related to restructuring |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
5 |
|
Pension plan termination costs |
|
|
|
|
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
Taxes on adjustments |
|
|
(4 |
) |
|
|
14 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
14 |
|
|
|
28 |
|
|
|
59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME (LOSS) |
|
$ |
(4 |
) |
|
$ |
23 |
|
|
$ |
(6 |
) |
|
$ |
(15 |
) |
|
$ |
(30 |
) |
|
$ |
(28 |
) |
|
$ |
(96 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Changes in fair value of market risk benefits
and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments as reconciled below: |
|
Changes in fair value of market risk benefits and associated hedges |
|
$ |
17 |
|
|
$ |
(56 |
) |
|
$ |
(27 |
) |
|
$ |
20 |
|
|
$ |
(41 |
) |
|
$ |
(104 |
) |
|
$ |
(160 |
) |
Adjustment for changes in reserves, attributed fees and benefit payments |
|
|
(3 |
) |
|
|
(8 |
) |
|
|
(5 |
) |
|
|
(12 |
) |
|
|
(13 |
) |
|
|
(38 |
) |
|
|
(50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges |
|
$ |
14 |
|
|
$ |
(64 |
) |
|
$ |
(32 |
) |
|
$ |
8 |
|
|
$ |
(54 |
) |
|
$ |
(142 |
) |
|
$ |
(210 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Adjusted Operating Income (Loss)Life and Annuities SegmentLife Insurance
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
Full Year |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
62 |
|
|
$ |
45 |
|
|
$ |
55 |
|
|
$ |
60 |
|
|
$ |
74 |
|
|
$ |
234 |
|
|
$ |
(136 |
) |
Net investment income |
|
|
164 |
|
|
|
167 |
|
|
|
166 |
|
|
|
164 |
|
|
|
164 |
|
|
|
661 |
|
|
|
667 |
|
Net investment gains (losses) |
|
|
(2 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
2 |
|
|
|
9 |
|
|
|
5 |
|
|
|
74 |
|
Policy fees and other income |
|
|
134 |
|
|
|
138 |
|
|
|
138 |
|
|
|
133 |
|
|
|
134 |
|
|
|
543 |
|
|
|
567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
358 |
|
|
|
351 |
|
|
|
352 |
|
|
|
359 |
|
|
|
381 |
|
|
|
1,443 |
|
|
|
1,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
199 |
|
|
|
181 |
|
|
|
197 |
|
|
|
217 |
|
|
|
203 |
|
|
|
798 |
|
|
|
486 |
|
Liability remeasurement (gains) losses |
|
|
18 |
|
|
|
(10 |
) |
|
|
16 |
|
|
|
4 |
|
|
|
22 |
|
|
|
32 |
|
|
|
109 |
|
Interest credited |
|
|
98 |
|
|
|
97 |
|
|
|
98 |
|
|
|
96 |
|
|
|
94 |
|
|
|
385 |
|
|
|
373 |
|
Acquisition and operating expenses, net of deferrals |
|
|
36 |
|
|
|
39 |
|
|
|
40 |
|
|
|
32 |
|
|
|
56 |
|
|
|
167 |
|
|
|
136 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
44 |
|
|
|
45 |
|
|
|
49 |
|
|
|
55 |
|
|
|
57 |
|
|
|
206 |
|
|
|
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
395 |
|
|
|
352 |
|
|
|
400 |
|
|
|
404 |
|
|
|
432 |
|
|
|
1,588 |
|
|
|
1,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(37 |
) |
|
|
(1 |
) |
|
|
(48 |
) |
|
|
(45 |
) |
|
|
(51 |
) |
|
|
(145 |
) |
|
|
(186 |
) |
Benefit for income taxes |
|
|
(8 |
) |
|
|
(1 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(11 |
) |
|
|
(32 |
) |
|
|
(40 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(29 |
) |
|
|
|
|
|
|
(38 |
) |
|
|
(35 |
) |
|
|
(40 |
) |
|
|
(113 |
) |
|
|
(146 |
) |
|
|
|
|
|
|
|
|
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
2 |
|
|
|
(1 |
) |
|
|
7 |
|
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(5 |
) |
|
|
(74 |
) |
Expenses related to restructuring |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
4 |
|
Pension plan termination costs |
|
|
|
|
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
Taxes on adjustments |
|
|
|
|
|
|
1 |
|
|
|
(3 |
) |
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME (LOSS) |
|
$ |
(27 |
) |
|
$ |
1 |
|
|
$ |
(28 |
) |
|
$ |
(37 |
) |
|
$ |
(47 |
) |
|
$ |
(111 |
) |
|
$ |
(201 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Adjusted Operating IncomeLife and Annuities SegmentFixed Annuities
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
Full Year |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
91 |
|
|
$ |
93 |
|
|
$ |
96 |
|
|
$ |
93 |
|
|
$ |
108 |
|
|
$ |
390 |
|
|
$ |
498 |
|
Net investment gains (losses) |
|
|
(8 |
) |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
(2 |
) |
|
|
5 |
|
|
|
(8 |
) |
|
|
(2 |
) |
Policy fees and other income |
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
85 |
|
|
|
90 |
|
|
|
91 |
|
|
|
93 |
|
|
|
115 |
|
|
|
389 |
|
|
|
505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy
reserves(1) |
|
|
39 |
|
|
|
37 |
|
|
|
42 |
|
|
|
(332 |
) |
|
|
46 |
|
|
|
(207 |
) |
|
|
188 |
|
Liability remeasurement (gains) losses |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
2 |
|
|
|
(5 |
) |
|
|
25 |
|
Changes in fair value of market risk benefits and associated hedges |
|
|
8 |
|
|
|
|
|
|
|
(15 |
) |
|
|
(12 |
) |
|
|
(13 |
) |
|
|
(40 |
) |
|
|
(21 |
) |
Interest credited |
|
|
27 |
|
|
|
27 |
|
|
|
28 |
|
|
|
29 |
|
|
|
30 |
|
|
|
114 |
|
|
|
133 |
|
Acquisition and operating expenses, net of
deferrals(1) |
|
|
8 |
|
|
|
7 |
|
|
|
7 |
|
|
|
372 |
|
|
|
9 |
|
|
|
395 |
|
|
|
44 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
16 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
84 |
|
|
|
73 |
|
|
|
64 |
|
|
|
58 |
|
|
|
78 |
|
|
|
273 |
|
|
|
386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
1 |
|
|
|
17 |
|
|
|
27 |
|
|
|
35 |
|
|
|
37 |
|
|
|
116 |
|
|
|
119 |
|
Provision for income taxes |
|
|
|
|
|
|
4 |
|
|
|
6 |
|
|
|
7 |
|
|
|
8 |
|
|
|
25 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
1 |
|
|
|
13 |
|
|
|
21 |
|
|
|
28 |
|
|
|
29 |
|
|
|
91 |
|
|
|
94 |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
8 |
|
|
|
4 |
|
|
|
7 |
|
|
|
2 |
|
|
|
(5 |
) |
|
|
8 |
|
|
|
2 |
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges(2) |
|
|
8 |
|
|
|
(3 |
) |
|
|
(14 |
) |
|
|
(13 |
) |
|
|
(15 |
) |
|
|
(45 |
) |
|
|
(17 |
) |
Expenses related to restructuring |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
Taxes on adjustments |
|
|
(3 |
) |
|
|
|
|
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
|
8 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
14 |
|
|
$ |
14 |
|
|
$ |
15 |
|
|
$ |
20 |
|
|
$ |
13 |
|
|
$ |
62 |
|
|
$ |
83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In the second quarter of 2022, the recapture of
certain single premium immediate annuity contracts by a third party reduced benefits and other changes in policy reserves by $374 million and increased acquisition and operating expenses, net of deferrals, by $365 million.
(2) Changes in fair value of market risk benefits
and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments as reconciled below: |
|
Changes in fair value of market risk benefits and associated hedges |
|
$ |
8 |
|
|
$ |
|
|
|
$ |
(15 |
) |
|
$ |
(12 |
) |
|
$ |
(13 |
) |
|
$ |
(40 |
) |
|
$ |
(21 |
) |
Adjustment for changes in reserves, attributed fees and benefit payments |
|
|
|
|
|
|
(3 |
) |
|
|
1 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges |
|
$ |
8 |
|
|
$ |
(3 |
) |
|
$ |
(14 |
) |
|
$ |
(13 |
) |
|
$ |
(15 |
) |
|
$ |
(45 |
) |
|
$ |
(17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Adjusted Operating IncomeLife and Annuities SegmentVariable Annuities
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
Full Year |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
9 |
|
|
$ |
8 |
|
|
$ |
9 |
|
|
$ |
8 |
|
|
$ |
7 |
|
|
$ |
32 |
|
|
$ |
30 |
|
Net investment gains (losses) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
2 |
|
Policy fees and other income |
|
|
27 |
|
|
|
28 |
|
|
|
29 |
|
|
|
29 |
|
|
|
33 |
|
|
|
119 |
|
|
|
142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
36 |
|
|
|
36 |
|
|
|
37 |
|
|
|
37 |
|
|
|
40 |
|
|
|
150 |
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
8 |
|
|
|
8 |
|
|
|
8 |
|
|
|
7 |
|
|
|
6 |
|
|
|
29 |
|
|
|
14 |
|
Changes in fair value of market risk benefits and associated hedges |
|
|
9 |
|
|
|
(56 |
) |
|
|
(12 |
) |
|
|
32 |
|
|
|
(28 |
) |
|
|
(64 |
) |
|
|
(139 |
) |
Interest credited |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
|
|
5 |
|
Acquisition and operating expenses, net of deferrals |
|
|
9 |
|
|
|
8 |
|
|
|
10 |
|
|
|
12 |
|
|
|
12 |
|
|
|
42 |
|
|
|
53 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
4 |
|
|
|
5 |
|
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
|
18 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
31 |
|
|
|
(34 |
) |
|
|
12 |
|
|
|
56 |
|
|
|
(4 |
) |
|
|
30 |
|
|
|
(47 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
5 |
|
|
|
70 |
|
|
|
25 |
|
|
|
(19 |
) |
|
|
44 |
|
|
|
120 |
|
|
|
221 |
|
Provision (benefit) for income taxes |
|
|
1 |
|
|
|
14 |
|
|
|
4 |
|
|
|
(4 |
) |
|
|
9 |
|
|
|
23 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
4 |
|
|
|
56 |
|
|
|
21 |
|
|
|
(15 |
) |
|
|
35 |
|
|
|
97 |
|
|
|
176 |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
(2 |
) |
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges(1) |
|
|
6 |
|
|
|
(61 |
) |
|
|
(18 |
) |
|
|
21 |
|
|
|
(39 |
) |
|
|
(97 |
) |
|
|
(193 |
) |
Taxes on adjustments |
|
|
(1 |
) |
|
|
13 |
|
|
|
3 |
|
|
|
(4 |
) |
|
|
8 |
|
|
|
20 |
|
|
|
41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
9 |
|
|
$ |
8 |
|
|
$ |
7 |
|
|
$ |
2 |
|
|
$ |
4 |
|
|
$ |
21 |
|
|
$ |
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Changes in fair value of market risk benefits
and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments as reconciled below: |
|
Changes in fair value of market risk benefits and associated hedges |
|
$ |
9 |
|
|
$ |
(56 |
) |
|
$ |
(12 |
) |
|
$ |
32 |
|
|
$ |
(28 |
) |
|
$ |
(64 |
) |
|
$ |
(139 |
) |
Adjustment for changes in reserves, attributed fees and benefit payments |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(11 |
) |
|
|
(11 |
) |
|
|
(33 |
) |
|
|
(54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges |
|
$ |
6 |
|
|
$ |
(61 |
) |
|
$ |
(18 |
) |
|
$ |
21 |
|
|
$ |
(39 |
) |
|
$ |
(97 |
) |
|
$ |
(193 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
Corporate and
Other
(There were no changes to Corporate and Other due to the adoption of LDTI)
28
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Adjusted Operating LossCorporate and Other(1)
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
6 |
|
Net investment income |
|
|
4 |
|
|
|
4 |
|
|
|
1 |
|
|
|
|
|
|
|
3 |
|
|
|
8 |
|
Net investment gains (losses) |
|
|
(10 |
) |
|
|
(21 |
) |
|
|
4 |
|
|
|
15 |
|
|
|
(13 |
) |
|
|
(15 |
) |
Policy fees and other income |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
(4 |
) |
|
|
(16 |
) |
|
|
6 |
|
|
|
17 |
|
|
|
(8 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
(3 |
) |
|
|
|
|
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(11 |
) |
Acquisition and operating expenses, net of deferrals |
|
|
16 |
|
|
|
11 |
|
|
|
11 |
|
|
|
10 |
|
|
|
9 |
|
|
|
41 |
|
Interest expense |
|
|
16 |
|
|
|
14 |
|
|
|
14 |
|
|
|
13 |
|
|
|
13 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
29 |
|
|
|
25 |
|
|
|
21 |
|
|
|
19 |
|
|
|
19 |
|
|
|
84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(33 |
) |
|
|
(41 |
) |
|
|
(15 |
) |
|
|
(2 |
) |
|
|
(27 |
) |
|
|
(85 |
) |
Provision (benefit) for income taxes |
|
|
(5 |
) |
|
|
(19 |
) |
|
|
2 |
|
|
|
3 |
|
|
|
(2 |
) |
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(28 |
) |
|
|
(22 |
) |
|
|
(17 |
) |
|
|
(5 |
) |
|
|
(25 |
) |
|
|
(69 |
) |
|
|
|
|
|
|
|
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
10 |
|
|
|
21 |
|
|
|
(4 |
) |
|
|
(15 |
) |
|
|
13 |
|
|
|
15 |
|
(Gains) losses on early extinguishment of debt |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
3 |
|
|
|
1 |
|
|
|
3 |
|
|
|
6 |
|
Expenses related to restructuring |
|
|
4 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
Taxes on adjustments |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
3 |
|
|
|
(3 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING LOSS |
|
$ |
(18 |
) |
|
$ |
(6 |
) |
|
$ |
(18 |
) |
|
$ |
(16 |
) |
|
$ |
(12 |
) |
|
$ |
(52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes inter-segment eliminations and the
results of other businesses, including start-up growth initiatives and certain international businesses, that are managed outside the operating segments. |
|
29
Additional
Financial Data
30
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Investments Summary
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
|
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 |
|
$ |
26,894 |
|
|
|
44 |
% |
|
$ |
26,047 |
|
|
|
43 |
% |
|
$ |
25,550 |
|
|
|
43 |
% |
|
$ |
27,342 |
|
|
|
43 |
% |
|
$ |
30,897 |
|
|
|
45 |
% |
Private fixed maturity securities |
|
|
11,182 |
|
|
|
18 |
|
|
|
11,126 |
|
|
|
19 |
|
|
|
10,997 |
|
|
|
18 |
|
|
|
11,727 |
|
|
|
19 |
|
|
|
12,873 |
|
|
|
19 |
|
Residential mortgage-backed
securities(1) |
|
|
986 |
|
|
|
2 |
|
|
|
995 |
|
|
|
2 |
|
|
|
1,069 |
|
|
|
2 |
|
|
|
1,213 |
|
|
|
2 |
|
|
|
1,320 |
|
|
|
2 |
|
Commercial mortgage-backed securities |
|
|
1,814 |
|
|
|
3 |
|
|
|
1,900 |
|
|
|
3 |
|
|
|
1,980 |
|
|
|
3 |
|
|
|
2,126 |
|
|
|
3 |
|
|
|
2,349 |
|
|
|
3 |
|
Other asset-backed securities |
|
|
2,113 |
|
|
|
3 |
|
|
|
2,117 |
|
|
|
3 |
|
|
|
2,139 |
|
|
|
4 |
|
|
|
2,009 |
|
|
|
3 |
|
|
|
2,016 |
|
|
|
3 |
|
State and political subdivisions |
|
|
2,403 |
|
|
|
4 |
|
|
|
2,399 |
|
|
|
4 |
|
|
|
2,532 |
|
|
|
4 |
|
|
|
2,849 |
|
|
|
5 |
|
|
|
3,134 |
|
|
|
5 |
|
Non-investment grade fixed maturity securities |
|
|
1,989 |
|
|
|
3 |
|
|
|
1,999 |
|
|
|
3 |
|
|
|
1,948 |
|
|
|
3 |
|
|
|
2,020 |
|
|
|
3 |
|
|
|
2,438 |
|
|
|
4 |
|
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stocks and mutual funds |
|
|
306 |
|
|
|
1 |
|
|
|
258 |
|
|
|
1 |
|
|
|
204 |
|
|
|
|
|
|
|
172 |
|
|
|
|
|
|
|
151 |
|
|
|
|
|
Preferred stocks |
|
|
58 |
|
|
|
|
|
|
|
61 |
|
|
|
|
|
|
|
70 |
|
|
|
|
|
|
|
71 |
|
|
|
|
|
|
|
79 |
|
|
|
|
|
Commercial mortgage loans, net |
|
|
6,891 |
|
|
|
11 |
|
|
|
7,010 |
|
|
|
11 |
|
|
|
7,063 |
|
|
|
11 |
|
|
|
7,065 |
|
|
|
12 |
|
|
|
6,913 |
|
|
|
10 |
|
Policy loans |
|
|
2,133 |
|
|
|
3 |
|
|
|
2,139 |
|
|
|
3 |
|
|
|
2,153 |
|
|
|
4 |
|
|
|
2,178 |
|
|
|
3 |
|
|
|
2,028 |
|
|
|
3 |
|
Limited partnerships |
|
|
2,456 |
|
|
|
4 |
|
|
|
2,331 |
|
|
|
4 |
|
|
|
2,195 |
|
|
|
4 |
|
|
|
2,123 |
|
|
|
3 |
|
|
|
2,007 |
|
|
|
3 |
|
Cash, cash equivalents, restricted cash and short-term investments |
|
|
1,759 |
|
|
|
3 |
|
|
|
1,802 |
|
|
|
3 |
|
|
|
1,563 |
|
|
|
3 |
|
|
|
1,774 |
|
|
|
3 |
|
|
|
1,367 |
|
|
|
2 |
|
Other invested assets: |
|
Derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
42 |
|
|
|
|
|
|
|
24 |
|
|
|
|
|
|
|
25 |
|
|
|
|
|
|
|
30 |
|
|
|
|
|
|
|
162 |
|
|
|
|
|
|
|
Foreign currency swaps |
|
|
17 |
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
32 |
|
|
|
|
|
|
|
17 |
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
Equity index options |
|
|
10 |
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
38 |
|
|
|
|
|
|
|
30 |
|
|
|
|
|
|
|
30 |
|
|
|
|
|
|
|
Other |
|
|
541 |
|
|
|
1 |
|
|
|
513 |
|
|
|
1 |
|
|
|
493 |
|
|
|
1 |
|
|
|
446 |
|
|
|
1 |
|
|
|
398 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total invested assets and cash |
|
$ |
61,594 |
|
|
|
100 |
% |
|
$ |
60,747 |
|
|
|
100 |
% |
|
$ |
60,051 |
|
|
|
100 |
% |
|
$ |
63,192 |
|
|
|
100 |
% |
|
$ |
68,167 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Fixed Maturity SecuritiesCredit
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSRO(2) Designation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA |
|
$ |
6,112 |
|
|
|
19 |
% |
|
$ |
6,067 |
|
|
|
19 |
% |
|
$ |
6,174 |
|
|
|
20 |
% |
|
$ |
6,713 |
|
|
|
20 |
% |
|
$ |
7,484 |
|
|
|
20 |
% |
AA |
|
|
2,872 |
|
|
|
9 |
|
|
|
2,859 |
|
|
|
9 |
|
|
|
2,958 |
|
|
|
9 |
|
|
|
3,245 |
|
|
|
10 |
|
|
|
3,538 |
|
|
|
9 |
|
A |
|
|
8,699 |
|
|
|
27 |
|
|
|
8,398 |
|
|
|
27 |
|
|
|
8,278 |
|
|
|
26 |
|
|
|
8,886 |
|
|
|
26 |
|
|
|
9,880 |
|
|
|
26 |
|
BBB |
|
|
14,056 |
|
|
|
43 |
|
|
|
13,623 |
|
|
|
43 |
|
|
|
13,322 |
|
|
|
43 |
|
|
|
14,155 |
|
|
|
42 |
|
|
|
16,177 |
|
|
|
42 |
|
BB |
|
|
786 |
|
|
|
2 |
|
|
|
776 |
|
|
|
2 |
|
|
|
780 |
|
|
|
2 |
|
|
|
846 |
|
|
|
2 |
|
|
|
1,079 |
|
|
|
3 |
|
B |
|
|
41 |
|
|
|
|
|
|
|
34 |
|
|
|
|
|
|
|
33 |
|
|
|
|
|
|
|
33 |
|
|
|
|
|
|
|
61 |
|
|
|
|
|
CCC and lower |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total public fixed maturity securities |
|
$ |
32,566 |
|
|
|
100 |
% |
|
$ |
31,757 |
|
|
|
100 |
% |
|
$ |
31,545 |
|
|
|
100 |
% |
|
$ |
33,878 |
|
|
|
100 |
% |
|
$ |
38,219 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Fixed Maturity SecuritiesCredit
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSRO(2) Designation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA |
|
$ |
860 |
|
|
|
6 |
% |
|
$ |
825 |
|
|
|
6 |
% |
|
$ |
830 |
|
|
|
6 |
% |
|
$ |
806 |
|
|
|
5 |
% |
|
$ |
775 |
|
|
|
5 |
% |
AA |
|
|
1,422 |
|
|
|
10 |
|
|
|
1,421 |
|
|
|
10 |
|
|
|
1,407 |
|
|
|
10 |
|
|
|
1,421 |
|
|
|
9 |
|
|
|
1,554 |
|
|
|
9 |
|
A |
|
|
4,217 |
|
|
|
28 |
|
|
|
4,170 |
|
|
|
28 |
|
|
|
4,059 |
|
|
|
28 |
|
|
|
4,308 |
|
|
|
28 |
|
|
|
4,773 |
|
|
|
28 |
|
BBB |
|
|
7,154 |
|
|
|
48 |
|
|
|
7,221 |
|
|
|
48 |
|
|
|
7,239 |
|
|
|
48 |
|
|
|
7,732 |
|
|
|
50 |
|
|
|
8,408 |
|
|
|
50 |
|
BB |
|
|
1,012 |
|
|
|
7 |
|
|
|
1,076 |
|
|
|
7 |
|
|
|
1,028 |
|
|
|
7 |
|
|
|
1,015 |
|
|
|
7 |
|
|
|
1,159 |
|
|
|
7 |
|
B |
|
|
150 |
|
|
|
1 |
|
|
|
113 |
|
|
|
1 |
|
|
|
107 |
|
|
|
1 |
|
|
|
120 |
|
|
|
1 |
|
|
|
131 |
|
|
|
1 |
|
CCC and lower |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total private fixed maturity securities |
|
$ |
14,815 |
|
|
|
100 |
% |
|
$ |
14,826 |
|
|
|
100 |
% |
|
$ |
14,670 |
|
|
|
100 |
% |
|
$ |
15,408 |
|
|
|
100 |
% |
|
$ |
16,808 |
|
|
|
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. |
31
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Fixed Maturity Securities Summary
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
|
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 |
|
$ |
3,441 |
|
|
|
7 |
% |
|
$ |
3,341 |
|
|
|
7 |
% |
|
$ |
3,307 |
|
|
|
7 |
% |
|
$ |
3,627 |
|
|
|
7 |
% |
|
$ |
4,097 |
|
|
|
8 |
% |
State and political subdivisions |
|
|
2,403 |
|
|
|
5 |
|
|
|
2,399 |
|
|
|
5 |
|
|
|
2,532 |
|
|
|
6 |
|
|
|
2,849 |
|
|
|
6 |
|
|
|
3,134 |
|
|
|
6 |
|
Foreign government |
|
|
630 |
|
|
|
1 |
|
|
|
645 |
|
|
|
1 |
|
|
|
622 |
|
|
|
1 |
|
|
|
682 |
|
|
|
1 |
|
|
|
784 |
|
|
|
1 |
|
U.S. corporate |
|
|
27,872 |
|
|
|
59 |
|
|
|
27,119 |
|
|
|
59 |
|
|
|
26,562 |
|
|
|
58 |
|
|
|
28,243 |
|
|
|
58 |
|
|
|
31,823 |
|
|
|
58 |
|
Foreign corporate |
|
|
8,059 |
|
|
|
17 |
|
|
|
8,010 |
|
|
|
17 |
|
|
|
7,947 |
|
|
|
17 |
|
|
|
8,482 |
|
|
|
17 |
|
|
|
9,453 |
|
|
|
17 |
|
Residential mortgage-backed securities |
|
|
985 |
|
|
|
2 |
|
|
|
995 |
|
|
|
2 |
|
|
|
1,069 |
|
|
|
2 |
|
|
|
1,213 |
|
|
|
2 |
|
|
|
1,320 |
|
|
|
2 |
|
Commercial mortgage-backed securities |
|
|
1,831 |
|
|
|
4 |
|
|
|
1,908 |
|
|
|
4 |
|
|
|
1,989 |
|
|
|
4 |
|
|
|
2,137 |
|
|
|
5 |
|
|
|
2,361 |
|
|
|
4 |
|
Other asset-backed securities |
|
|
2,160 |
|
|
|
5 |
|
|
|
2,166 |
|
|
|
5 |
|
|
|
2,187 |
|
|
|
5 |
|
|
|
2,053 |
|
|
|
4 |
|
|
|
2,055 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed maturity securities |
|
$ |
47,381 |
|
|
|
100 |
% |
|
$ |
46,583 |
|
|
|
100 |
% |
|
$ |
46,215 |
|
|
|
100 |
% |
|
$ |
49,286 |
|
|
|
100 |
% |
|
$ |
55,027 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Holdings - Industry Sector: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and insurance |
|
$ |
9,149 |
|
|
|
26 |
% |
|
$ |
8,986 |
|
|
|
26 |
% |
|
$ |
8,858 |
|
|
|
26 |
% |
|
$ |
9,313 |
|
|
|
25 |
% |
|
$ |
10,235 |
|
|
|
25 |
% |
Utilities |
|
|
4,788 |
|
|
|
13 |
|
|
|
4,591 |
|
|
|
13 |
|
|
|
4,476 |
|
|
|
13 |
|
|
|
4,857 |
|
|
|
14 |
|
|
|
5,450 |
|
|
|
14 |
|
Energy |
|
|
2,882 |
|
|
|
8 |
|
|
|
2,813 |
|
|
|
8 |
|
|
|
2,790 |
|
|
|
8 |
|
|
|
3,043 |
|
|
|
8 |
|
|
|
3,372 |
|
|
|
8 |
|
Consumer - non-cyclical |
|
|
4,998 |
|
|
|
14 |
|
|
|
4,872 |
|
|
|
14 |
|
|
|
4,782 |
|
|
|
14 |
|
|
|
5,221 |
|
|
|
15 |
|
|
|
5,967 |
|
|
|
15 |
|
Consumer - cyclical |
|
|
1,602 |
|
|
|
4 |
|
|
|
1,594 |
|
|
|
5 |
|
|
|
1,557 |
|
|
|
5 |
|
|
|
1,576 |
|
|
|
4 |
|
|
|
1,758 |
|
|
|
4 |
|
Capital goods |
|
|
2,554 |
|
|
|
7 |
|
|
|
2,517 |
|
|
|
7 |
|
|
|
2,505 |
|
|
|
7 |
|
|
|
2,677 |
|
|
|
7 |
|
|
|
2,972 |
|
|
|
7 |
|
Industrial |
|
|
1,944 |
|
|
|
6 |
|
|
|
1,863 |
|
|
|
5 |
|
|
|
1,806 |
|
|
|
5 |
|
|
|
1,877 |
|
|
|
5 |
|
|
|
2,092 |
|
|
|
5 |
|
Technology and communications |
|
|
3,713 |
|
|
|
10 |
|
|
|
3,564 |
|
|
|
10 |
|
|
|
3,481 |
|
|
|
10 |
|
|
|
3,681 |
|
|
|
10 |
|
|
|
4,224 |
|
|
|
10 |
|
Transportation |
|
|
1,459 |
|
|
|
4 |
|
|
|
1,439 |
|
|
|
4 |
|
|
|
1,385 |
|
|
|
4 |
|
|
|
1,465 |
|
|
|
4 |
|
|
|
1,642 |
|
|
|
4 |
|
Other |
|
|
1,022 |
|
|
|
3 |
|
|
|
1,048 |
|
|
|
3 |
|
|
|
1,072 |
|
|
|
3 |
|
|
|
1,147 |
|
|
|
3 |
|
|
|
1,298 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
34,111 |
|
|
|
95 |
|
|
|
33,287 |
|
|
|
95 |
|
|
|
32,712 |
|
|
|
95 |
|
|
|
34,857 |
|
|
|
95 |
|
|
|
39,010 |
|
|
|
95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Investment Grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and insurance |
|
|
164 |
|
|
|
1 |
|
|
|
153 |
|
|
|
1 |
|
|
|
159 |
|
|
|
1 |
|
|
|
168 |
|
|
|
1 |
|
|
|
185 |
|
|
|
|
|
Utilities |
|
|
47 |
|
|
|
|
|
|
|
47 |
|
|
|
|
|
|
|
48 |
|
|
|
|
|
|
|
56 |
|
|
|
|
|
|
|
62 |
|
|
|
|
|
Energy |
|
|
407 |
|
|
|
1 |
|
|
|
409 |
|
|
|
1 |
|
|
|
399 |
|
|
|
1 |
|
|
|
431 |
|
|
|
1 |
|
|
|
568 |
|
|
|
1 |
|
Consumer - non-cyclical |
|
|
150 |
|
|
|
|
|
|
|
151 |
|
|
|
|
|
|
|
140 |
|
|
|
|
|
|
|
141 |
|
|
|
|
|
|
|
192 |
|
|
|
1 |
|
Consumer - cyclical |
|
|
291 |
|
|
|
1 |
|
|
|
299 |
|
|
|
1 |
|
|
|
302 |
|
|
|
1 |
|
|
|
290 |
|
|
|
1 |
|
|
|
321 |
|
|
|
1 |
|
Capital goods |
|
|
178 |
|
|
|
1 |
|
|
|
167 |
|
|
|
1 |
|
|
|
158 |
|
|
|
1 |
|
|
|
146 |
|
|
|
|
|
|
|
159 |
|
|
|
|
|
Industrial |
|
|
155 |
|
|
|
|
|
|
|
152 |
|
|
|
|
|
|
|
146 |
|
|
|
|
|
|
|
171 |
|
|
|
1 |
|
|
|
209 |
|
|
|
1 |
|
Technology and communications |
|
|
247 |
|
|
|
1 |
|
|
|
277 |
|
|
|
1 |
|
|
|
266 |
|
|
|
1 |
|
|
|
286 |
|
|
|
1 |
|
|
|
372 |
|
|
|
1 |
|
Transportation |
|
|
37 |
|
|
|
|
|
|
|
36 |
|
|
|
|
|
|
|
35 |
|
|
|
|
|
|
|
29 |
|
|
|
|
|
|
|
29 |
|
|
|
|
|
Other |
|
|
144 |
|
|
|
|
|
|
|
151 |
|
|
|
|
|
|
|
144 |
|
|
|
|
|
|
|
150 |
|
|
|
|
|
|
|
169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
1,820 |
|
|
|
5 |
|
|
|
1,842 |
|
|
|
5 |
|
|
|
1,797 |
|
|
|
5 |
|
|
|
1,868 |
|
|
|
5 |
|
|
|
2,266 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
35,931 |
|
|
|
100 |
% |
|
$ |
35,129 |
|
|
|
100 |
% |
|
$ |
34,509 |
|
|
|
100 |
% |
|
$ |
36,725 |
|
|
|
100 |
% |
|
$ |
41,276 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Maturity Securities - Contractual Maturity Dates: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due in one year or less |
|
$ |
1,328 |
|
|
|
3 |
% |
|
$ |
1,234 |
|
|
|
3 |
% |
|
$ |
1,128 |
|
|
|
2 |
% |
|
$ |
1,314 |
|
|
|
3 |
% |
|
$ |
1,420 |
|
|
|
3 |
% |
Due after one year through five years |
|
|
8,245 |
|
|
|
17 |
|
|
|
7,931 |
|
|
|
17 |
|
|
|
7,856 |
|
|
|
17 |
|
|
|
7,958 |
|
|
|
16 |
|
|
|
8,501 |
|
|
|
15 |
|
Due after five years through ten years |
|
|
11,746 |
|
|
|
25 |
|
|
|
11,915 |
|
|
|
26 |
|
|
|
11,751 |
|
|
|
25 |
|
|
|
12,765 |
|
|
|
26 |
|
|
|
13,943 |
|
|
|
25 |
|
Due after ten years |
|
|
21,086 |
|
|
|
44 |
|
|
|
20,434 |
|
|
|
43 |
|
|
|
20,235 |
|
|
|
45 |
|
|
|
21,846 |
|
|
|
44 |
|
|
|
25,427 |
|
|
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
42,405 |
|
|
|
89 |
|
|
|
41,514 |
|
|
|
89 |
|
|
|
40,970 |
|
|
|
89 |
|
|
|
43,883 |
|
|
|
89 |
|
|
|
49,291 |
|
|
|
90 |
|
Mortgage and asset-backed securities |
|
|
4,976 |
|
|
|
11 |
|
|
|
5,069 |
|
|
|
11 |
|
|
|
5,245 |
|
|
|
11 |
|
|
|
5,403 |
|
|
|
11 |
|
|
|
5,736 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed maturity securities |
|
$ |
47,381 |
|
|
|
100 |
% |
|
$ |
46,583 |
|
|
|
100 |
% |
|
$ |
46,215 |
|
|
|
100 |
% |
|
$ |
49,286 |
|
|
|
100 |
% |
|
$ |
55,027 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
U.S. GAAP Net Investment Income Yields
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
U.S. GAAP Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities - taxable |
|
$ |
561 |
|
|
$ |
562 |
|
|
$ |
576 |
|
|
$ |
578 |
|
|
$ |
580 |
|
|
$ |
2,296 |
|
Fixed maturity securities - non-taxable |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
Equity securities |
|
|
2 |
|
|
|
3 |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
10 |
|
Commercial mortgage loans |
|
|
76 |
|
|
|
81 |
|
|
|
81 |
|
|
|
78 |
|
|
|
81 |
|
|
|
321 |
|
Policy loans |
|
|
55 |
|
|
|
55 |
|
|
|
55 |
|
|
|
51 |
|
|
|
50 |
|
|
|
211 |
|
Limited partnerships |
|
|
28 |
|
|
|
22 |
|
|
|
38 |
|
|
|
32 |
|
|
|
7 |
|
|
|
99 |
|
Other invested assets |
|
|
68 |
|
|
|
71 |
|
|
|
67 |
|
|
|
66 |
|
|
|
63 |
|
|
|
267 |
|
Cash, cash equivalents, restricted cash and short-term investments |
|
|
18 |
|
|
|
12 |
|
|
|
7 |
|
|
|
1 |
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross investment income before expenses and fees |
|
|
809 |
|
|
|
807 |
|
|
|
829 |
|
|
|
809 |
|
|
|
784 |
|
|
|
3,229 |
|
Expenses and fees |
|
|
(22 |
) |
|
|
(20 |
) |
|
|
(21 |
) |
|
|
(22 |
) |
|
|
(20 |
) |
|
|
(83 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
787 |
|
|
$ |
787 |
|
|
$ |
808 |
|
|
$ |
787 |
|
|
$ |
764 |
|
|
$ |
3,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Yields |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities - taxable |
|
|
4.4 |
% |
|
|
4.4 |
% |
|
|
4.5 |
% |
|
|
4.5 |
% |
|
|
4.4 |
% |
|
|
4.5 |
% |
Fixed maturity securities - non-taxable |
|
|
4.6 |
% |
|
|
4.0 |
% |
|
|
7.1 |
% |
|
|
3.6 |
% |
|
|
3.6 |
% |
|
|
4.7 |
% |
Equity securities |
|
|
2.3 |
% |
|
|
4.0 |
% |
|
|
4.6 |
% |
|
|
3.4 |
% |
|
|
3.7 |
% |
|
|
4.0 |
% |
Commercial mortgage loans |
|
|
4.4 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.5 |
% |
|
|
4.7 |
% |
|
|
4.6 |
% |
Policy loans |
|
|
10.3 |
% |
|
|
10.3 |
% |
|
|
10.2 |
% |
|
|
9.7 |
% |
|
|
9.8 |
% |
|
|
10.0 |
% |
Limited partnerships(1) |
|
|
4.7 |
% |
|
|
3.9 |
% |
|
|
7.0 |
% |
|
|
6.2 |
% |
|
|
1.4 |
% |
|
|
4.7 |
% |
Other invested assets(2) |
|
|
51.6 |
% |
|
|
56.6 |
% |
|
|
57.0 |
% |
|
|
62.6 |
% |
|
|
64.8 |
% |
|
|
59.9 |
% |
Cash, cash equivalents, restricted cash and short-term investments |
|
|
4.0 |
% |
|
|
2.9 |
% |
|
|
1.7 |
% |
|
|
0.3 |
% |
|
|
|
% |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross investment income before expenses and fees |
|
|
5.0 |
% |
|
|
5.0 |
% |
|
|
5.1 |
% |
|
|
4.9 |
% |
|
|
4.8 |
% |
|
|
5.0 |
% |
Expenses and fees |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
|
|
(0.1 |
)% |
|
|
(0.1 |
)% |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
4.9 |
% |
|
|
4.8 |
% |
|
|
5.0 |
% |
|
|
4.8 |
% |
|
|
4.7 |
% |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. See page 38 herein for average invested assets and cash used in the yield calculation.
(1) |
Limited partnership investments are primarily equity-based and do not have fixed returns by period.
|
(2) |
Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no
corresponding book value within the yield calculation. |
33
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Net Investment Gains (Losses)Detail
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Realized investment gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. corporate |
|
$ |
(8 |
) |
|
$ |
(25 |
) |
|
$ |
(23 |
) |
|
$ |
(2 |
) |
|
$ |
(12 |
) |
|
$ |
(62 |
) |
U.S. government, agencies and government-sponsored enterprises |
|
|
1 |
|
|
|
|
|
|
|
9 |
|
|
|
|
|
|
|
6 |
|
|
|
15 |
|
Foreign corporate |
|
|
(3 |
) |
|
|
(6 |
) |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(16 |
) |
Foreign government |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
(10 |
) |
Asset-backed securities |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net realized gains (losses) on available-for-sale securities |
|
|
(16 |
) |
|
|
(35 |
) |
|
|
(27 |
) |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
(74 |
) |
Net realized gains (losses) on equity securities sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on limited partnerships |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net realized investment gains (losses) |
|
|
(16 |
) |
|
|
(35 |
) |
|
|
(27 |
) |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
(74 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in allowance for credit losses on available-for-sale fixed maturity securities |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-down of available-for-sale fixed maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
(2 |
) |
Net unrealized gains (losses) on equity securities still held |
|
|
11 |
|
|
|
11 |
|
|
|
(14 |
) |
|
|
(26 |
) |
|
|
(6 |
) |
|
|
(35 |
) |
Net unrealized gains (losses) on limited partnerships |
|
|
|
|
|
|
36 |
|
|
|
(24 |
) |
|
|
24 |
|
|
|
35 |
|
|
|
71 |
|
Commercial mortgage loans |
|
|
(2 |
) |
|
|
1 |
|
|
|
|
|
|
|
2 |
|
|
|
1 |
|
|
|
4 |
|
Derivative instruments |
|
|
12 |
|
|
|
(12 |
) |
|
|
7 |
|
|
|
18 |
|
|
|
19 |
|
|
|
32 |
|
Other |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
5 |
|
|
|
3 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment gains (losses) |
|
$ |
(11 |
) |
|
$ |
(5 |
) |
|
$ |
(58 |
) |
|
$ |
19 |
|
|
$ |
42 |
|
|
$ |
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34
Reconciliations
of Non-GAAP Measures
35
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Reconciliation of Operating ROE
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Average ROE |
|
Three months ended |
|
U.S. GAAP Basis ROE |
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
Net income available to Genworth Financial, Inc.s common stockholders for the period ended(1) |
|
$ |
62 |
|
|
$ |
508 |
|
|
$ |
147 |
|
|
$ |
153 |
|
|
$ |
191 |
|
Quarterly average Genworth Financial, Inc.s stockholders equity for the period,
excluding accumulated other comprehensive income (loss)(2) |
|
$ |
10,297 |
|
|
$ |
10,063 |
|
|
$ |
9,755 |
|
|
$ |
9,618 |
|
|
$ |
9,453 |
|
Annualized U.S. GAAP Quarterly Basis ROE
(1)/(2) |
|
|
2.4 |
% |
|
|
20.2 |
% |
|
|
6.0 |
% |
|
|
6.4 |
% |
|
|
8.1 |
% |
|
|
|
|
|
|
Operating ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income for the period
ended(1) |
|
$ |
84 |
|
|
$ |
465 |
|
|
$ |
169 |
|
|
$ |
147 |
|
|
$ |
120 |
|
Quarterly average Genworth Financial, Inc.s stockholders equity for the period,
excluding accumulated other comprehensive income (loss)(2) |
|
$ |
10,297 |
|
|
$ |
10,063 |
|
|
$ |
9,755 |
|
|
$ |
9,618 |
|
|
$ |
9,453 |
|
Annualized Operating Quarterly Basis ROE (1)/(2)
|
|
|
3.3 |
% |
|
|
18.5 |
% |
|
|
6.9 |
% |
|
|
6.1 |
% |
|
|
5.1 |
% |
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) |
Net income 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 (loss), is derived by averaging ending Genworth Financial, Inc.s stockholders equity, excluding accumulated other comprehensive income (loss). |
36
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Reconciliation of Consolidated Expense Ratio
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
GAAP Basis Expense Ratio |
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
(A) |
|
Acquisition and operating expenses, net of deferrals |
|
$ |
283 |
|
|
$ |
270 |
|
|
$ |
235 |
|
|
$ |
584 |
|
|
$ |
280 |
|
|
$ |
1,369 |
|
(B) |
|
Premiums |
|
$ |
915 |
|
|
$ |
918 |
|
|
$ |
929 |
|
|
$ |
916 |
|
|
$ |
917 |
|
|
$ |
3,680 |
|
|
|
|
|
|
|
|
|
(A) / (B) |
|
GAAP Basis Expense Ratio |
|
|
31 |
% |
|
|
29 |
% |
|
|
25 |
% |
|
|
64 |
% |
|
|
31 |
% |
|
|
37 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted Expense Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and operating expenses, net of deferrals |
|
$ |
283 |
|
|
$ |
270 |
|
|
$ |
235 |
|
|
$ |
584 |
|
|
$ |
280 |
|
|
$ |
1,369 |
|
|
|
Less: Reinsurance recapture payment(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
365 |
|
|
|
|
|
|
|
365 |
|
|
|
Less: Legal settlement expenses(2) |
|
|
56 |
|
|
|
45 |
|
|
|
10 |
|
|
|
6 |
|
|
|
43 |
|
|
|
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) |
|
Adjusted acquisition and operating expenses, net of deferrals |
|
$ |
227 |
|
|
$ |
225 |
|
|
$ |
225 |
|
|
$ |
213 |
|
|
$ |
237 |
|
|
$ |
900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
915 |
|
|
$ |
918 |
|
|
$ |
929 |
|
|
$ |
916 |
|
|
$ |
917 |
|
|
$ |
3,680 |
|
|
|
Add: Policy fees and other income |
|
|
163 |
|
|
|
167 |
|
|
|
169 |
|
|
|
165 |
|
|
|
170 |
|
|
|
671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D) |
|
Adjusted revenues |
|
$ |
1,078 |
|
|
$ |
1,085 |
|
|
$ |
1,098 |
|
|
$ |
1,081 |
|
|
$ |
1,087 |
|
|
$ |
4,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) / (D) |
|
Adjusted expense ratio(3) |
|
|
21 |
% |
|
|
21 |
% |
|
|
20 |
% |
|
|
20 |
% |
|
|
22 |
% |
|
|
21 |
% |
Non-GAAP Definition for Adjusted Expense Ratio
The company references the non-GAAP financial measure entitled adjusted expense ratio as a measure of its operating performance. The company
defines adjusted expense ratio as acquisition and operating expenses, net of deferrals, less legal settlement expenses incurred in the companys long-term care insurance business divided by the sum of premiums, policy fees and other income.
Management believes that the expense ratio analysis enhances understanding of the operating performance of the company. However, the adjusted expense ratio as defined by the company should not be viewed as a substitute for the GAAP basis expense
ratio.
(1) |
In the second quarter of 2022, the company paid $365 million to a third party in connection with the recapture
of certain single premium immediate annuity contracts. |
(2) |
Estimated pre-tax impact of expenses related to policyholder benefit reduction elections made in connection
with legal settlements in the companys long-term care insurance business, which includes cash damages of $49 million, $40 million, $7 million, $6 million and $43 million for the three months ended March 31, 2023, December 31,
2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively. |
(3) |
In the first quarter of 2022, the company recorded a legal settlement accrual of $25 million in its life
insurance business, which increased the adjusted expense ratio by two percentage points for the three months ended March 31, 2022. |
37
GENWORTH FINANCIAL, INC.
RE-PRESENTED FINANCIAL SUPPLEMENT
Reconciliation of Reported Yield to Core Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
(Assets - amounts in billions) |
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
|
Reported - Total Invested Assets and Cash |
|
$ |
61.6 |
|
|
$ |
60.7 |
|
|
$ |
60.1 |
|
|
$ |
63.2 |
|
|
$ |
68.2 |
|
|
$ |
60.7 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) |
|
|
(3.0 |
) |
|
|
(4.2 |
) |
|
|
(4.9 |
) |
|
|
(1.9 |
) |
|
|
3.0 |
|
|
|
(4.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted end of period invested assets and cash |
|
$ |
64.6 |
|
|
$ |
64.9 |
|
|
$ |
65.0 |
|
|
$ |
65.1 |
|
|
$ |
65.2 |
|
|
$ |
64.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) |
|
Average Invested Assets and Cash Used in Reported and Core Yield Calculation |
|
$ |
64.8 |
|
|
$ |
65.0 |
|
|
$ |
65.0 |
|
|
$ |
65.2 |
|
|
$ |
65.4 |
|
|
$ |
65.2 |
|
|
|
|
|
|
|
|
|
|
|
(Income - amounts in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) |
|
Reported - Net Investment Income |
|
$ |
787 |
|
|
$ |
787 |
|
|
$ |
808 |
|
|
$ |
787 |
|
|
$ |
764 |
|
|
$ |
3,146 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond calls and commercial mortgage loan prepayments |
|
|
2 |
|
|
|
6 |
|
|
|
6 |
|
|
|
7 |
|
|
|
10 |
|
|
|
29 |
|
|
|
Other non-core items(1) |
|
|
1 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) |
|
Core Net Investment Income |
|
$ |
784 |
|
|
$ |
782 |
|
|
$ |
802 |
|
|
$ |
780 |
|
|
$ |
754 |
|
|
$ |
3,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) / (A) |
|
Reported Yield |
|
|
4.86 |
% |
|
|
4.84 |
% |
|
|
4.97 |
% |
|
|
4.83 |
% |
|
|
4.67 |
% |
|
|
4.83 |
% |
(C) / (A) |
|
Core Yield |
|
|
4.84 |
% |
|
|
4.81 |
% |
|
|
4.93 |
% |
|
|
4.79 |
% |
|
|
4.61 |
% |
|
|
4.79 |
% |
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.
|
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