0001193125-20-202699

8-K

0001193125-20-202699;, ;, 8-K

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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 29, 2020 Date of Report (Date of earliest event reported)

GENWORTH FINANCIAL, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation)

001-32195
(Commission File Number)

6620 West Broad Street, Richmond, VA
(Address of principal executive offices)
(804) 281-6000
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)

80-0873306
(I.R.S. Employer Identification No.)
23230
(Zip Code)

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

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Title of each class
Class A Common Stock, par value $.001 per share

Trading Symbol
GNW

Name of each exchange on which registered
New York Stock Exchange

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

Emerging growth company 

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

Item 2.02

Results of Operations and Financial Condition.

On July 29, 2020, Genworth Financial, Inc. (the "Company") issued (1) a press release announcing its financial results for the quarter ended June 30, 2020, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (2) a financial supplement for the quarter ended June 30, 2020, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

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

Item 9.01

Financial Statements and Exhibits.

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

Exhibit Number
99.1 99.2 104

Description of Exhibit
Press Release dated July 29, 2020 Financial Supplement for the quarter ended June 30, 2020 Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

GENWORTH FINANCIAL, INC.

Date: July 29, 2020

By: /s/ Matthew D. Farney Matthew D. Farney Vice President and Controller (Principal Accounting Officer)

EXHIBIT 99.1
Genworth Financial Announces Second Quarter 2020 Results
Second Quarter Net Loss $441 Million And Adjusted Operating Loss Of $21 Million · Merger Agreement With China Oceanwide Holdings Group Co., Ltd (Oceanwide) Extended To Not Later Than September 30, 2020; Interim Milestone By August 31,
2020 · Reached Agreement With AXA S.A. (AXA) On July 20, 2020 To Settle Liability For Payment Protection Insurance Mis-Selling, Which Included A Payment Of
£100MM Subsequent To Quarter-End · U.S. Mortgage Insurance (MI) Benefited From A Robust Mortgage Origination Market With $28.4 Billion In New Insurance Written (NIW) · U.S. MI Adjusted Operating Loss Of $3 Million Primarily Driven By Higher New Delinquencies Attributable To The COVID-19 Pandemic · U.S. MI's PMIERs1 Sufficiency Ratio Estimated At 143 Percent, $1,275 Million Above Requirements
- Reinsurance Transaction On 2009-2019 Blocks Providing Approximately $180 Million PMIERs Credit · U.S. Life Insurance Segment Adjusted Operating Loss Of $5 Million Driven By Life Insurance Performance; LTC2 Benefited From Higher Mortality In The Quarter
Indicative Of COVID-19 · Holding Company Cash And Liquid Assets Of $554 Million, Including $59 Million Restricted, With Repurchases Of $52 Million Principal Amount Of 2021 Senior
Notes In The Quarter
Richmond, VA (July 29, 2020) ­ Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended June 30, 2020. The company reported a net loss3 of $441 million, or $0.86 per diluted share, in the second quarter of 2020, compared with net income of $168 million, or $0.33 per diluted share, in the second quarter of 2019. The company reported an adjusted operating loss4 of $21 million, or $0.04 per diluted share, in the second quarter of 2020, compared with adjusted operating income of $178 million, or $0.35 per diluted share, in the second quarter of 2019.
In July 2020, the company reached a settlement agreement with AXA regarding a dispute over payment protection insurance claims underwritten by the company's former lifestyle protection insurance business that was acquired by AXA in 2015. As a result, Genworth recorded an after-tax loss of $516 million for the settlement as part of discontinued operations in the current quarter. 1 Private Mortgage Insurer Eligibility Requirements 2 Long term care insurance 3 Unless otherwise stated, all references in this press release to net income (loss), net income (loss) per share, adjusted operating income (loss), adjusted operating income
(loss) per share and book value per share should be read as net income (loss) available to Genworth's common stockholders, net income (loss) available to Genworth's common stockholders per diluted share, adjusted operating income (loss) available to Genworth's common stockholders, adjusted operating income (loss) available to Genworth's common stockholders per diluted share and book value available to Genworth's common stockholders per share, respectively. 4 This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (Non-GAAP). See the Use of Non-GAAP Measures section of this press release for additional information.
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COVID-19 Update
The COVID-19 pandemic continued to impact Genworth in the current quarter. Genworth's priority remains servicing its customers while maintaining the health and safety of all employees and their families. The company successfully transitioned to a fully remote work environment in March, and employees have continued to serve customers and policyholders effectively with minimal disruption. As cases have continued to surge in some regions of the U.S. and given the organization's seamless transition to remote operations, Genworth has decided to extend remote working conditions until at least January 1, 2021. Genworth is constantly monitoring and evaluating the impact of COVID-19 and will continue to act in the best interests of its investors and employees while effectively addressing customer needs.
The COVID-19 pandemic and related macroeconomic volatility negatively impacted the company's financial results in the quarter primarily as a result of higher unemployment, increased home borrower participation in forbearance programs and increased new delinquencies which were partly mitigated by the effects of government stimulus. These effects were partially offset by benefits from sequential equity market improvement and higher mortality in the LTC business.
Genworth is closely monitoring macroeconomic indicators and is conducting extensive scenario planning to tailor its actions to mitigate adverse effects of the pandemic. The economic impact to U.S. MI for the remainder of 2020 is uncertain and will depend on the speed of recovery and the amount and duration of government stimulus reaching borrowers. Mortgage originations remained strong during the current quarter driven by the low interest rate environment which resulted in higher refinance origination volumes. New delinquencies increased significantly in the current quarter, peaking in the month of May consistent with forbearance trends seen earlier in the quarter. Although uncertainty remains high, as economic activity resumes and forbearance options provide borrowers with financial stability, higher new delinquencies may be mitigated by higher cure rates in the second half of 2020. In order to preserve capital in the company's mortgage insurance subsidiaries during this period of uncertainty, Genworth does not expect to receive further dividends from its mortgage insurance businesses in 2020. Additionally, in response to COVID-19, the U.S. MI business is subject to the temporary PMIERs requirement to obtain pre-approval from the government-sponsored enterprises (GSEs) for certain capital related transactions, including dividends. The amount and timing of dividends in 2021 will depend on a variety of factors, including the timing of economic recovery from COVID-19.
In the U.S. life insurance companies, interest rate and equity market movements are expected to continue to impact U.S. GAAP and statutory results. Results may also continue to be impacted by higher mortality,
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dependent on the length and severity of the COVID-19 pandemic. The company continues to manage the U.S. life insurance businesses on a standalone basis with no plans to infuse or extract capital other than as committed in connection with the completion of the Oceanwide transaction.
"Genworth's leadership team and employees have shown incredible resilience and dedication to our customers, policyholders and each other during this difficult period," said Tom McInerney, President and CEO of Genworth. "While the severity and duration of the pandemic remains to be seen, we continue to plan for various scenarios to ensure we are taking the right steps to best position our businesses to navigate the impacts of the pandemic."
Strategic Update On June 30, Genworth and Oceanwide announced they agreed to extend the merger agreement deadline to not later than September 30, 2020, which provides Oceanwide with additional time to secure funding for the transaction and receive clearance for currency conversion and transfer of funds from China's State Administration of Foreign Exchange (SAFE). Oceanwide has indicated that the financing has been delayed due to the COVID-19 pandemic and uncertain macroeconomic conditions.
"Although the closing process has been further delayed by the COVID-19 pandemic, the Oceanwide transaction continues to represent the best strategic option for Genworth's shareholders, and benefits policyholders, customers and employees," said Tom McInerney, president and CEO of Genworth. "The fifteenth waiver and extension of the merger agreement provides both parties with the flexibility needed to navigate this uncertain environment. In order to address our near-term financial obligations including the recently announced AXA settlement, we are moving forward with steps to enhance our liquidity while working diligently towards closing the transaction."
LU Zhiqiang, chairman of Oceanwide, continued. "The acquisition of Genworth is a strategically important transaction and a priority for China Oceanwide. The financing progress has been delayed given the significant economic impacts of lock-downs associated with the global pandemic, but we remain committed to securing financing for the transaction in order to close the transaction as soon as possible."
As part of the fifteenth waiver and extension, Genworth and Oceanwide also agreed to additional interim milestones designed to provide more clarity to Genworth on Oceanwide's progress towards financing the transaction. Specifically, the fifteenth waiver includes provisions for Oceanwide to submit satisfactory evidence to Genworth by August 31, 2020 confirming that:
· Approximately $1.0 billion is available to Oceanwide from sources in Mainland China to fund the acquisition of Genworth; and
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· Hony Capital and/or other acceptable third parties have committed to provide Oceanwide $1.0 billion or more from sources outside of China to fund the transaction.
Given the delay in the closing process, Genworth is moving forward with plans to address its near-term liabilities and financial obligations, which include the recently announced settlement agreement with AXA and approximately $1.0 billion of debt maturing in 2021. Genworth expects these steps to include a debt financing in the near term and taking the necessary steps to launch a 19.9 percent initial public offering of its U.S. Mortgage Insurance business, subject to market conditions, in the event the China Oceanwide transaction is terminated.
As previously announced, Genworth paid AXA £100 million, or $125 million, on July 21, 2020 (which amount is in addition to a £100 million interim cash payment Genworth made to AXA in January 2020 and expensed in the fourth quarter of 2019). In addition, Genworth issued a secured promissory note to AXA, pursuant to which Genworth will make deferred cash payments totaling approximately £317 million in two installments: the first on June 30, 2022 and the second on September 30, 2022, subject to certain prepayment obligations. Genworth has also agreed to pay a significant portion of mis-selling losses incurred by AXA from the ongoing processing of previously submitted mis-selling complaints, which losses will be added to and paid with the second installment on September 30, 2022.
Under the terms of the settlement and the sale and purchase agreement, if AXA recovers amounts from third parties related to the mis-selling losses, including from the distributor responsible for the sale of the policies, Genworth has certain rights to share in those recoveries to recoup payments for the underlying mis-selling losses.
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Financial Performance Consolidated Net Income (Loss) & Adjusted Operating Income (Loss)

(Amounts in millions, except per share)
Net income (loss) available to Genworth's common stockholders Adjusted operating income (loss) Weighted-average diluted shares

Three months ended June 30

2020

2019

Total

Per diluted share

Total

Per diluted share

$ (441) $ (0.86) $ 168 $ 0.33

$ (21) $ (0.04) $ 178 $ 0.35

512.5

508.7

Total % change
NM5
(112)%

Book value per share Book value per share, excluding accumulated other comprehensive income (loss)

As of June 30 2020
$ 28.96 $ 20.17

2019
$ 27.32 $ 21.34

The net loss in the quarter included investment gains of $101 million, net of taxes and other adjustments. The investment gains were driven by sales of U.S. Treasury bonds and mark-to-market gains on limited partnerships and equity securities. Net income in the second quarter of 2019 included $35 million from investment losses, net of taxes and other adjustments.

Net investment income was $786 million in the quarter, compared to $793 million in the prior quarter and $816 million in the prior year. Net investment income was lower than the prior quarter as a result of lower income from bond calls and prepayments and an unfavorable inflation impact on U.S. Government Treasury Inflation Protected Securities (TIPS) in the quarter compared to favorable inflation in the prior quarter, partially offset by higher income from limited partnerships. Net investment income was lower than the prior year due to unfavorable inflation impact of TIPS in the quarter compared to favorable inflation in the prior year. The reported yield and the core yield4 for the quarter were 4.65 percent and 4.59 percent, respectively, compared to 4.71 percent and 4.57 percent, respectively, in the prior quarter.

Genworth's effective tax rate on income from continuing operations for the quarter was approximately 31.1 percent. The effective tax rate was increased from the tax effect of forward starting swap gains settled prior to the change in the corporate tax rate under the 2017 Tax Cuts and Jobs Act, which continue to be tax effected at 35 percent as they are amortized into net investment income, as well as by the higher tax expense related to foreign operations and nondeductible goodwill. The effective tax rate on the loss from discontinued operations for the quarter was 21 percent.
5 The company defines "NM" as not meaningful for increases or decreases greater than 200 percent.
5

Adjusted operating income (loss) results by business line are summarized in the table below:

Adjusted Operating Income (Loss) (Amounts in millions)
U.S. Mortgage Insurance Australia Mortgage Insurance U.S. Life Insurance Runoff Corporate and Other
Total Adjusted Operating Income (Loss)

Q2 20
$ (3) 1 (5) 24
(38)
$ (21)

Q1 20
$ 148 9
(70) (13) (41)
$ 33

Q2 19
$ 147 13 66 9 (57)
$ 178

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

Unless specifically noted in the discussion of results for the Australia MI business, references to percentage changes exclude the impact of translating foreign denominated activity into U.S. dollars (foreign exchange). Percentage changes that include the impact of foreign exchange are found in a table at the end of this press release.

U.S. Mortgage Insurance

Operating Metrics (Dollar amounts in millions)
Adjusted operating income (loss)
New insurance written Primary Flow
Loss ratio

Q2 20
$ (3)
$28,400 94%

Q1 20
$ 148
$17,900 8%

Q2 19
$ 147
$15,800 -- %

U.S. MI reported an adjusted operating loss of $3 million, compared with adjusted operating income of $148 million in the prior quarter and $147 million in the prior year. U.S. MI's flow insurance in force increased 16 percent versus the prior year from strong NIW, driving continued growth in earned premiums. Flow NIW increased 59 percent from the prior quarter due to higher purchase and refinance originations and was up 80 percent versus the prior year primarily driven by higher refinance originations, a larger private mortgage insurance market and higher estimated market share. Flow insurance in force growth from NIW was partially offset by low persistency, which was 60 percent for the quarter, down from 76 percent in the prior quarter and 82 percent in the prior year. The growth in earned premiums versus the prior quarter and prior year was also driven by increased single premium policy cancellations from lower persistency and higher mortgage refinancing activity, partially offset by lower average premium rates and higher ceded premiums associated with the company's credit risk transfer program.
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U.S. MI losses of $228 million and loss ratio of 94 percent were up from both the prior year and sequentially driven by an increase in new delinquencies from the COVID-19 pandemic. Total flow delinquencies increased from 15,246 to 53,372 sequentially driven by 48,249 new delinquencies in the quarter, of which 87 percent are subject to a forbearance plan and may cure at an elevated rate. New delinquencies contributed $170 million of loss expense in the quarter, and in addition, losses included approximately $28 million of incremental loss expense associated with incurred but not reported (IBNR) delinquencies. U.S. MI also strengthened reserves on existing delinquencies by $28 million, primarily due to the deterioration of early cure emergence patterns impacting the frequency of claim, along with a modest increase in the estimated claim severity.

Australia Mortgage Insurance

Operating Metrics (Dollar amounts in millions)
Adjusted operating income
New insurance written Flow Bulk
Loss ratio

Q2 20
$1
$ 4,400 $ 100
63%

Q1 20
$9
$ 4,100 $ 200
34%

Q2 19
$ 13
$ 3,700 $ 1,200
34%

Australia MI reported adjusted operating income of $1 million, down from $9 million in the prior quarter and $13 million in the prior year primarily from lower earned premiums and higher losses in the current quarter. Australia MI flow NIW increased 15 percent sequentially and increased 32 percent versus the prior year due to higher mortgage origination volume with continued low interest rates and improving consumer confidence. Through the second quarter, over 48,000 of Australia MI's insured loans, or 4% of its insured loans in force, were enrolled in a payment deferral or payment holiday program. Under regulatory guidance, these loans, unless previously delinquent, are reported as current. The business strengthened its loss reserve by $18 million in the current quarter, including IBNR reserving for the loan payment deferrals, to reflect anticipated economic impacts caused by the COVID-19 pandemic. The loss ratio in the quarter was 63 percent, up 29 points both sequentially and versus prior year primarily due to the increases in loss reserves.

U.S. Life Insurance

Adjusted Operating Income (Loss) (Amounts in millions)
Long Term Care Insurance Life Insurance Fixed Annuities
Total U.S. Life Insurance

Q2 20
$ 48 (81) 28
$ (5)

Q1 20
$1 (77) 6
$ (70)

Q2 19
$ 37 10 19
$ 66

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Long Term Care Insurance
Long term care insurance reported adjusted operating income of $48 million, compared with $1 million in the prior quarter and $37 million in the prior year. Mortality in the current quarter was higher compared to the prior quarter and prior year, impacting active claims, pending claims and active policies. Although it is not the company's practice to track cause of death for LTC policyholders and claimants, current quarter LTC results were likely impacted by the COVID-19 pandemic. In light of the significant decrease in LTC new claim incidence the company has experienced during the COVID-19 pandemic, IBNR claim reserves were strengthened $37 million in the current quarter, reflecting the assumption that incidence during the quarter was temporarily delayed. The IBNR reserve strengthening partially offset the continued favorable development on IBNR claims. Premiums from in force rate actions were higher than the prior quarter and prior year, partially offset by less favorable impacts from benefit reductions.
Life Insurance
Life insurance reported an adjusted operating loss of $81 million, compared with an adjusted operating loss of $77 million in the prior quarter and adjusted operating income of $10 million in the prior year. Results reflected higher amortization of deferred acquisition costs (DAC) compared to the prior year, primarily associated with higher lapses from the large 20-year level-premium term life insurance block entering its post-level premium period. Results also reflected reserve increases during the premium grace period in the 10-year term universal life insurance block associated with policies entering the post-level premium period that were higher than the prior year and lower than the prior quarter. Universal life mortality was higher compared to the prior quarter and prior year, attributable in part to the COVID-19 pandemic. Prior year results included a reinsurance correction and a refinement resulting in a net favorable after-tax impact of $17 million.
Fixed Annuities
Fixed annuities reported adjusted operating income of $28 million, compared with $6 million in the prior quarter and $19 million in the prior year. Results versus the prior quarter and prior year reflected favorable reserve changes and DAC amortization due to the favorable equity market changes and higher mortality in the single premium immediate annuity product. Results versus the prior year also reflected lower net spreads and DAC amortization reflecting higher lapses. Results in the prior year included unfavorable after-tax charges of $4 million from loss recognition testing on the single premium immediate annuity block.
Runoff
Runoff reported adjusted operating income of $24 million, compared with an adjusted operating loss of $13 million in the prior quarter and adjusted operating income of $9 million in the prior year. Results in the current quarter reflected impacts in the company's variable annuity business from favorable equity market performance compared to the prior quarter and prior year.
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Corporate And Other
Corporate and Other reported an adjusted operating loss of $38 million, compared with $41 million in the prior quarter and $57 million in the prior year. Operating expenses in the current quarter were favorable compared to the prior quarter and prior year primarily from lower corporate spending. Additionally, results in the current quarter and prior quarter reflected lower interest expense compared to the prior year from the early redemption of Genworth Holdings, Inc.'s June 2020 senior notes in January 2020.

Capital & Liquidity
Genworth maintains the following capital positions in its operating subsidiaries:
Key Capital & Liquidity Metrics (Dollar amounts in millions)
U.S. MI Consolidated Risk-To-Capital Ratio6 Genworth Mortgage Insurance Corporation Risk-To-Capital Ratio6 Private Mortgage Insurer Eligibility Requirements (PMIERs) Sufficiency Ratio6,7
Australia MI Prescribed Capital Amount (PCA) Ratio6
U.S. Life Insurance Companies Consolidated Risk-Based Capital (RBC) Ratio6
Holding Company Cash and Liquid Assets8,9

Q2 20
12.0:1 12.2:1
143%
177%
220% $ 554

Q1 20
12.2:1 12.4:1
142%
178%
194% $ 575

Q2 19
11.8:1 12.1:1
123%
208%
191% $ 403

Key Points
· U.S. MI's PMIERs sufficiency ratio is estimated to be 143 percent, $1,275 million above requirements. The PMIERs sufficiency ratio was up one percent, or $104 million sequentially, with improvement driven primarily from business cash flows, elevated lapse of existing business and an increase in reinsurance credit, partially offset by incremental new delinquencies and capital consumed by NIW. Both the current quarter and prior quarter ratios benefited from a 0.30 multiplier applied to the risk based required asset factor for loans, pursuant to recently announced GSE PMIERs guidance, which resulted in a reduction of PMIERs required assets by an estimated $1,057 million at the end of the quarter;
6 Company estimate for the second quarter of 2020 due to timing of the preparation and filing of statutory statements. 7 The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. The current period PMIERs sufficiency ratio is an
estimate due to the timing of the PMIERs filing for the U.S. mortgage insurance business. As of June 30, 2020, March 31, 2020, and June 30, 2019, the PMIERs sufficiency ratios were in excess of $1.2 billion, $1.1 billion and $0.65 billion, respectively, of available assets above the applicable PMIERs requirements. 8 Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc. 9 Genworth Holdings, Inc. had $504 million, $525 million and $358 million of cash, cash equivalents and restricted cash as of June 30, 2020, March 31, 2020 and June 30, 2019, respectively, which included $10 million and $7 million of restricted cash and cash equivalents as of June 30, 2020 and June 30, 2019, respectively. Genworth Holdings, Inc. also held $50 million, $50 million and $45 million in U.S. government securities as of June 30, 2020, March 31, 2020 and June 30, 2019, respectively, which included $49 million, $50 million and $42 million, respectively, of restricted assets.
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· In the current quarter, U.S. MI executed an aggregate excess of loss reinsurance transaction which provided up to $300 million of reinsurance coverage on the 20092019 book years to provide PMIERs capital credit for elevated delinquencies as a result of COVID-19. The PMIERs sufficiency in the current quarter included approximately $180 million of capital credit in respect of this transaction. Combined with the other outstanding credit risk transfer transactions, including the insurance linked note, the credit risk transfer program provided an aggregate of approximately $1.0 billion of PMIERs capital credit as of June 30, 2020;
· Australia MI's PCA ratio is estimated to be 177 percent, above the company's target operating range of 132 to 144 percent. The PCA ratio was down one point sequentially;
· Subsequent to quarter end, Australia MI executed a series of Tier 2 debt transactions that extended favorable regulatory capital credit;
· U.S. life insurance companies' consolidated statutory risk-based capital is estimated to be 220%, up from the prior quarter primarily due to statutory income on LTC from favorable mortality and favorable equity market impacts on variable annuities during the current quarter; and
· The holding company ended the quarter with $554 million of cash and liquid assets, including $59 million that is restricted, which is above the company's target of two times expected annual debt interest payments excluding restricted cash and liquid assets. During the second quarter, the holding company repurchased $52 million of its 2021 maturities at a $4 million discount. Subsequent to quarter end, the company made a £100 million payment ($125 million) to AXA related to the settlement agreement on July 21, 2020.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com. From time to time, Genworth's publicly traded subsidiary, Genworth Mortgage Insurance Australia Limited, separately releases financial and other information about its operations. This information can be found at http://www.genworth.com.au.
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Conference Call And Financial Supplement Information This press release and the second quarter 2020 financial supplement are now posted on the company's website. Additional information regarding business results will be posted on the company's website, http://investor.genworth.com, by 8:00 a.m. on July 30, 2020. Investors are encouraged to review these materials.
Genworth will conduct a conference call on July 30, 2020 at 9:00 a.m. (ET) to discuss business results and provide an update on strategic objectives, including the pending transaction with China Oceanwide. Genworth's conference call will be accessible via telephone and the Internet. The dial-in number for Genworth's July 30th conference call is 888 208.1820 or 323 794.2110 (outside the U.S.); conference ID # 6602361. To participate in the call by webcast, register at http://investor.genworth.com at least 15 minutes prior to the webcast to download and install any necessary software.
A replay of the call will be available at 888 203.1112 or 719 457.0820 (outside the U.S.); conference ID # 6602361 through August 14, 2020. The webcast will also be archived on the company's website for one year.
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Use of Non-GAAP Measures
This press release includes the non-GAAP financial measures entitled "adjusted operating income (loss)" and "adjusted operating income (loss) per share." Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company's segments and Corporate and Other activities. A component of the company's net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company's discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) because, in the company's opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company's opinion, they are not indicative of overall operating trends.
While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.'s common stockholders in accordance with U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth Financial, Inc.'s common stockholders or net income (loss) available to Genworth Financial, Inc.'s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company's definition of adjusted operating income (loss) may differ from the definitions used by other companies.
Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.'s common stockholders to adjusted operating income (loss) assume a 21 percent tax rate for the company's domestic segments and a 30 percent tax rate for its Australia Mortgage Insurance segment and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves.
In the second quarter of 2020, the company recorded a goodwill impairment of $3 million, net of the portion attributable to noncontrolling interests, in its Australia mortgage insurance business.
12

During the second and first quarters of 2020, the company repurchased $52 million and $14 million, respectively, principal amount of Genworth Holdings, Inc.'s (Genworth Holdings) senior notes with 2021 maturity dates for a pre-tax gain of $3 million and $1 million, respectively. In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings' senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, the company's indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income (loss) as they relate to gains (losses) on the early extinguishment of debt.
The company recorded a pre-tax expense of $1 million in both the second and first quarters of 2020 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.
The tables at the end of this press release provide a reconciliation of net income (loss) available to Genworth Financial, Inc.'s common stockholders to adjusted operating income (loss) for the three months ended June 30, 2020 and 2019, as well as for the three months ended March 31, 2020, and reflect adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.
This press release includes the non-GAAP financial measure entitled "core yield" as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP. In addition, the company's definition of core yield may differ from the definitions used by other companies. A reconciliation of reported U.S. GAAP yield to core yield is included in a table at the end of this press release.
13

Definition of Selected Operating Performance Measures
The company taxes its international businesses at their local jurisdictional tax rates and its domestic businesses at the U.S. corporate federal income tax rate of 21 percent. The company's segment tax methodology applies the respective jurisdictional or domestic tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign withholding taxes and permanent differences between U.S. GAAP and local tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.
The annually-determined tax rates and adjustments to each segment's provision for income taxes are estimates which are subject to review and could change from year to year.
The company reports selected operating performance measures including "sales" and "insurance in force" or "risk in force" which are commonly used in the insurance industry as measures of operating performance.
Management regularly monitors and reports sales metrics as a measure of volume of new business generated in a period. Sales refer to new insurance written for mortgage insurance products. The company considers new insurance written to be a measure of the company's operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of the company's revenues or profitability during that period.
Management regularly monitors and reports insurance in force and risk in force. Insurance in force for the company's mortgage insurance businesses is a measure of the aggregate original loan balance for outstanding insurance policies as of the respective reporting date. Risk in force for the company's U.S. mortgage insurance business is based on the coverage percentage applied to the estimated current outstanding loan balance. Risk in force in the Australia mortgage insurance business is computed using an "effective" risk in force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in force has been calculated by applying to insurance in force a factor of 35 percent that represents the highest expected average per-claim payment for any one underwriting year over the life of the company's mortgage insurance business in Australia. The company also has certain risk share arrangements in Australia where it provides pro-rata coverage of certain loans rather than 100 percent coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. The company considers insurance in force and risk in force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.
Management also regularly monitors and reports a loss ratio for the company's businesses. For the mortgage insurance businesses, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.
These operating performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company's
14

future business and financial performance. Examples of forward-looking statements include statements the company makes relating to the closing of the transaction with China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, Oceanwide), Oceanwide's funding plans and transactions the company is pursuing to address its nearterm liabilities and financial obligations, which may include raising debt through its mortgage insurance subsidiaries and/or transactions to sell a percentage of its ownership interests in its mortgage insurance businesses, as well as statements the company makes regarding the potential impacts of the COVID-19 pandemic. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, business, competitive, market, regulatory and other factors and risks, including, but not limited to, the following:
· risks related to the proposed transaction with Oceanwide including: the risk that Oceanwide will be unable to raise funding or the company's inability to complete the Oceanwide transaction in a timely manner or at all, which may adversely affect the company's business and the price of its common stock; the risk that the company will be unable to address its near-term liabilities and financial obligations, including the risks that it will be unable to raise new debt financing and/or sell a percentage of its ownership interest in its U.S. mortgage insurance business to repay the promissory note to AXA or refinance its debt maturing in 2021 or beyond; the parties' inability to obtain regulatory approvals, clearances or extensions, or the possibility that such regulatory approvals or clearances may further delay the Oceanwide transaction or may not be received prior to September 30, 2020 (and either or both of the parties may not be willing to further waive their end date termination rights beyond September 30, 2020) or that materially burdensome or adverse regulatory conditions may be imposed or undesirable measures may be required in connection with any such regulatory approvals, clearances or extensions (including those conditions or measures that either or both of the parties may be unwilling to accept or undertake, as applicable) or that with continuing delays, circumstances may arise that make one or more previously obtained regulatory approvals or clearances no longer valid, one or both parties unwilling to proceed with the Oceanwide transaction or unable to comply with the conditions to existing regulatory approvals, or one or both of the parties may be unwilling to accept any new condition under a regulatory approval; the risk that the parties will not be able to obtain other regulatory approvals, clearances or extensions, including in connection with a potential alternative funding structure or the current geo-political environment, or that one or more regulators may rescind or fail to extend existing approvals, or that the revocation by one regulator of approvals will lead to the revocation of approvals by other regulators; the parties' inability to obtain any necessary regulatory approvals, clearances or extensions for the post-closing capital plan; the risk that a condition to the closing of the Oceanwide transaction may not be satisfied or that a condition to closing that is currently satisfied may not remain satisfied due to the delay in closing the Oceanwide transaction or that the parties will be unable to agree upon a closing date following receipt of all regulatory approvals and clearances; the risk that existing and potential legal proceedings may be instituted against the company in connection with the Oceanwide transaction that may delay the transaction, make it more costly or ultimately preclude it; the risk that the proposed Oceanwide transaction disrupts the company's current plans and operations as a result of the announcement and consummation of the transaction; potential adverse reactions or changes to the company's business relationships with clients, employees, suppliers or other parties or other business uncertainties resulting from the announcement of the Oceanwide transaction or during the pendency of the transaction, including but not limited to such changes that could affect the company's financial performance; certain restrictions during the pendency of the Oceanwide transaction that may impact the company's ability to pursue certain business opportunities or strategic transactions; continued availability of capital and financing to the company before, or in the absence of, the consummation of the Oceanwide transaction; further rating agency actions and downgrades in the company's credit or financial strength ratings; changes in applicable laws or regulations; the company's ability to recognize the anticipated benefits of the Oceanwide transaction; the amount of the costs, fees, expenses and other charges related to the Oceanwide transaction; the risks related to diverting management's attention from the company's ongoing business operations; and the company's ability to attract, recruit, retain and motivate current and prospective employees may be adversely affected;
15

· strategic risks in the event the proposed transaction with Oceanwide is not consummated including: the company's inability to successfully execute alternative strategic plans to effectively address its current business challenges (including with respect to stabilizing its U.S. life insurance businesses, debt and other obligations, cost savings, ratings and capital); the risk that the impacts of or uncertainty created by the COVID-19 pandemic delay or hinder alternative transactions or otherwise make alternative plans less attractive; the company's inability to attract buyers for any businesses or other assets it may seek to sell, or securities it may seek to issue, in each case, in a timely manner and on anticipated terms; failure to obtain any required regulatory, stockholder and/or noteholder approvals or consents for such alternative strategic plans, or the company's challenges changing or being more costly or difficult to successfully address than currently anticipated or the benefits achieved being less than anticipated; inability to achieve anticipated cost-savings in a timely manner; adverse tax or accounting charges; and the company's ability to increase the capital needed in its mortgage insurance businesses in a timely manner and on anticipated terms, including through business performance, reinsurance or similar transactions, asset sales, securities offerings or otherwise, in each case as and when required;
· risks relating to estimates, assumptions and valuations including: inadequate reserves and the need to increase reserves (including as a result of any changes the company may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews, including reviews it expects to complete and carry out in the fourth quarter of 2020); risks related to the impact of the company's annual review of assumptions and methodologies related to its long term care insurance claim reserves and margin reviews in the fourth quarter of 2020, including risks that additional information obtained in finalizing its claim reserves and margin reviews in the fourth quarter of 2020 or other changes to assumptions or methodologies materially affect margins; the inability to accurately estimate the impacts of the COVID-19 pandemic; inaccurate models; deviations from the company's estimates and actuarial assumptions or other reasons in its long term care insurance, life insurance and/or annuity businesses; accelerated amortization of deferred acquisition costs (DAC) and present value of future profits (PVFP) (including as a result of any changes it may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews, including reviews it expects to complete and carry out in the fourth quarter of 2020); adverse impact on the company's financial results as a result of projected profits followed by projected losses (as is currently the case with its long term care insurance business); adverse impact on the company's results of operations, including the outcome of its reviews of the premium earnings pattern for its mortgage insurance businesses; and changes in valuation of fixed maturity and equity securities;
· risks relating to economic, market and political conditions including: downturns and volatility in global economies and equity and credit markets, including as a result of prolonged unemployment, a sustained low interest rate environment and other displacements caused by the COVID-19 pandemic; interest rates and changes in rates have adversely impacted, and may continue to materially adversely impact, the company's business and profitability; deterioration in economic conditions or a decline in home prices that adversely affect the company's loss experience in mortgage insurance; political and economic instability or changes in government policies; and fluctuations in foreign currency exchange rates and international securities markets;
· regulatory and legal risks including: extensive regulation of the company's businesses and changes in applicable laws and regulations (including changes to tax laws and regulations); litigation and regulatory investigations or other actions; dependence on dividends and other distributions from the company's subsidiaries (particularly its mortgage insurance subsidiaries) and the inability of any subsidiaries to pay dividends or make other distributions to the company, including as a result of the performance of its subsidiaries, heightened regulatory restrictions resulting from the COVID-19 pandemic, and other insurance, regulatory or corporate law restrictions; the inability to successfully seek in force rate action increases (including increased premiums and associated benefit reductions) in the company's long term care insurance business, including as a result of the COVID-19 pandemic; adverse change in regulatory requirements, including risk-based capital; changes in regulations adversely affecting the company's Australian mortgage insurance business; inability to continue to maintain the private mortgage insurer eligibility requirements (PMIERs); the impact on capital levels of increased delinquencies caused by the COVID-19 pandemic; inability of the company's U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements; the influence of Federal
16

National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and a small number of large mortgage lenders on the U.S. mortgage insurance market and adverse changes to the role or structure of Fannie Mae and Freddie Mac; adverse changes in regulations affecting the company's mortgage insurance businesses; additional restrictions placed on the company's U.S. mortgage insurance business by government and governmentowned and government-sponsored enterprises (GSEs) in connection with a new debt financing and/or sale of a percentage of its ownership interests therein; inability to continue to implement actions to mitigate the impact of statutory reserve requirements; changes in tax laws; and changes in accounting and reporting standards;
· liquidity, financial strength ratings, credit and counterparty risks including: insufficient internal sources to meet liquidity needs and limited or no access to capital (including the ability to obtain further financing, either through raising new debt financing and/or selling a percentage of the company's ownership interests in its mortgage insurance businesses, or under a secured term loan or credit facility); the impact on holding company liquidity caused by the inability to receive dividends or other returns of capital from the company's mortgage insurance businesses as a result of the COVID-19 pandemic; the impact of increased leverage as a result of the AXA settlement and related restrictions; continued availability of capital and financing; future adverse rating agency actions, including with respect to rating downgrades or potential downgrades or being put on review for potential downgrade, all of which could have adverse implications for the company, including with respect to key business relationships, product offerings, business results of operations, financial condition and capital needs, strategic plans, collateral obligations and availability and terms of hedging, reinsurance and borrowings; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of the company's fixed maturity securities portfolio; and defaults on the company's commercial mortgage loans or the mortgage loans underlying its investments in commercial mortgage-backed securities and volatility in performance;
· operational risks including: inability to retain, attract and motivate qualified employees or senior management; ineffective or inadequate risk management in identifying, controlling or mitigating risks; the impact on processes caused by shelter-in-place or other governmental restrictions imposed as a result of the COVID-19 pandemic; reliance on, and loss of, key customer or distribution relationships; competition, including in the company's mortgage insurance businesses from GSEs offering mortgage insurance; the design and effectiveness of the company's disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations; and failure or any compromise of the security of the company's computer systems, disaster recovery systems and business continuity plans and failures to safeguard, or breaches of, its confidential information;
· insurance and product-related risks including: the company's inability to increase premiums and reduce benefits sufficiently, and in a timely manner, on its in force long term care insurance policies, in each case, as currently anticipated and as may be required from time to time in the future (including as a result of a delay or failure to obtain any necessary regulatory approvals, including as a result of the COVID-19 pandemic, or unwillingness or inability of policyholders to pay increased premiums and/or accept reduced benefits), including to offset any negative impact on the company's long term care insurance margins; availability, affordability and adequacy of reinsurance to protect the company against losses; decreases in the volume of high loan-to-value mortgage originations or increases in mortgage insurance cancellations; increases in the use of alternatives to private mortgage insurance and reductions in the level of coverage selected; potential liabilities in connection with the company's U.S. contract underwriting services; and medical advances, such as genetic research and diagnostic imaging, and related legislation that impact policyholder behavior in ways adverse to the company;
· other risks including: impairments of or valuation allowances against the company's deferred tax assets and the occurrence of natural or man-made disasters or a pandemic, such as the COVID-19 pandemic, could materially adversely affect its financial condition and results of operations.
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. This press release does not constitute an offering of any securities.
17

Contact Information: Investors: investorinfo@genworth.com

Media:

Julie Westermann, 804 662.2423 julie.westermann@genworth.com

# # # 18

Condensed Consolidated Statements of Income (Amounts in millions, except per share amounts)
(Unaudited)

Revenues: Premiums Net investment income Net investment gains (losses) Policy fees and other income
Total revenues Benefits and expenses: Benefits and other changes in policy reserves Interest credited Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles Goodwill impairment Interest expense
Total benefits and expenses Income (loss) from continuing operations before income taxes Provision (benefit) for income taxes Income (loss) from continuing operations Income (loss) from discontinued operations, net of taxes Net income (loss) Less: net income (loss) from continuing operations attributable to noncontrolling interests Less: net income from discontinued operations attributable to noncontrolling interests Net income (loss) available to Genworth Financial, Inc.'s common stockholders
Net income (loss) available to Genworth Financial, Inc.'s common stockholders: Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders Net income (loss) available to Genworth Financial, Inc.'s common stockholders
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: Basic
Diluted
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: Basic
Diluted
Weighted-average common shares outstanding: Basic
Diluted10

Three months ended

June 30,

2020

2019

Three months ended March 31, 2020

$ 1,019 786 159 174
2,138

$ 1,001 $ 816 (46) 223
1,994

1,015 793 (152) 181
1,837

1,486 1,251

139

146

223

229

93

84

5

--

44

60

1,990 1,770

148

224

46

66

102

158

(520)

60

(418)

218

23

15

--

35

$ (441) $ 168 $

1,361 141 249 116 -- 52
1,919 (82) (10) (72) -- (72) (6) -- (66)

$ 79 $ 143 $

(66)

(520)

25

--

$ (441) $ 168 $

(66)

$ 0.16 $ 0.29 $ $ 0.15 $ 0.28 $

$ (0.87) $ 0.33 $ $ (0.86) $ 0.33 $

505.4 512.5

503.4 508.7

(0.13) (0.13)
(0.13) (0.13)
504.3 504.3

10 Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.
19

Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss) (Amounts in millions, except per share amounts) (Unaudited)

Net income (loss) available to Genworth Financial, Inc.'s common stockholders Add: net income (loss) from continuing operations attributable to noncontrolling interests Add: net income from discontinued operations attributable to noncontrolling interests Net income (loss) Less: income (loss) from discontinued operations, net of taxes Income (loss) from continuing operations Less: net income (loss) from continuing operations attributable to noncontrolling interests Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders: Net investment (gains) losses, net11 Goodwill impairment, net12 (Gains) losses on early extinguishment of debt Expenses related to restructuring Taxes on adjustments Adjusted operating income (loss)
Adjusted operating income (loss): U.S. Mortgage Insurance segment Australia Mortgage Insurance segment U.S. Life Insurance segment:
Long Term Care Insurance Life Insurance Fixed Annuities Total U.S. Life Insurance segment Runoff segment Corporate and Other Adjusted operating income (loss)
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: Basic
Diluted
Adjusted operating income (loss) per share: Basic
Diluted
Weighted-average common shares outstanding: Basic
Diluted10

Three

months ended

June 30,

2020

2019

$ (441) $ 168

23

15

--

35

(418)

218

(520)

60

102

158

23

15

79

143

(131) 3 (3) 1 30
$ (21)

43 -- -- --
(8)
$ 178

$ (3) 1
48 (81) 28 (5) 24 (38) $ (21)

$ 147 13
37 10 19 66
9 (57) $ 178

Three

months ended

March 31,

2020

$

(66)

(6)

--

(72)

--

(72)

(6)

(66)

115

--

12

1

(29)

$

33

$

148

9

1 (77)
6

(70)

(13) (41)

$

33

$ (0.87) $ (0.86)
$ (0.04) $ (0.04)
505.4 512.5

$ 0.33 $ 0.33
$ 0.35 $ 0.35
503.4 508.7

$ (0.13) $ (0.13)

$

0.07

$

0.07

504.3 504.3

11 For the three months ended June 30, 2020, June 30, 2019 and March 31, 2020, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(4) million, $(3) million and $(11) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $32 million, $--million and $(26) million, respectively.
12 For the three months ended June 30, 2020, goodwill impairment was adjusted by $2 million related to the company's mortgage insurance business in Australia for the portion attributable to noncontrolling interests.
20

Condensed Consolidated Balance Sheets (Amounts in millions)
Assets Cash, cash equivalents, restricted cash and invested assets Deferred acquisition costs Intangible assets and goodwill Reinsurance recoverable, net Deferred tax and other assets Separate account assets Total assets
Liabilities and equity Liabilities: Future policy benefits Policyholder account balances Liability for policy and contract claims Unearned premiums Other liabilities Non-recourse funding obligations Long-term borrowings Separate account liabilities Liabilities related to discontinued operations Total liabilities Equity: Common stock Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Treasury stock, at cost Total Genworth Financial, Inc.'s stockholders' equity Noncontrolling interests Total equity Total liabilities and equity
21

June 30, 2020
(Unaudited)
$ 78,520 1,718 223 16,900 740 5,536
$ 103,637

December 31, 2019
$ 75,226 1,836 201 17,103 868 6,108
$ 101,342

$ 41,463 22,921 11,280 1,804 2,075 -- 2,817 5,536 653 88,549
1 11,996 4,447
899 (2,700) 14,643
445 15,088 $ 103,637

$ 40,384 22,217 10,958 1,893 1,428 311 3,277 6,108 134 86,710
1 11,990 3,433 1,461 (2,700) 14,185
447 14,632 $ 101,342

Reconciliation of Adjusted Operating Income Previously Reported to Adjusted Operating Income Re-Presented to Exclude Discontinued Operations (Amounts in millions)

Adjusted operating income as previously reported Remove Canada Mortgage Insurance segment adjusted operating income reported as discontinued operations Adjustment for corporate overhead allocations, net of taxes13 Adjustment for interest on debt that was required to be repaid as a result of the disposal transaction, net of taxes14 Tax adjustments15
Re-presented adjusted operating income

Three months ended

June 30,

2019

$

204

(41)

(5)

6

14

$

178

13 Expenses previously reported in the Canada MI segment and moved to Corporate and Other Activities. 14 Interest on a senior secured term loan facility owed by Genworth Holdings, Inc. previously reported in Corporate and Other Activities and moved to discontinued
operations. 15 Tax impacts resulting from the classification of Genworth Canada as held-for-sale.
22

Impact of Foreign Exchange on Adjusted Operating Income and Flow New Insurance Written16 Three months ended June 30, 2020

Australia MI: Adjusted operating income Flow new insurance written Flow new insurance written (2Q20 vs. 1Q20)

Percentages Including Foreign
Exchange
(92)% 19%
7%

16 All percentages are comparing the second quarter of 2020 to the second quarter of 2019 unless otherwise stated. 17 The impact of foreign exchange was calculated using the comparable prior period exchange rates.

23

Percentages Excluding Foreign
Exchange17
(92)% 32% 15%

Reconciliation of Reported Yield to Core Yield
(Assets--amounts in billions)
Reported Total Invested Assets and Cash Subtract:
Securities lending Unrealized gains (losses) Adjusted End of Period Invested Assets and Cash Average Invested Assets and Cash Used in Reported and Core Yield Calculation
(Income--amounts in millions)
Reported Net Investment Income Subtract:
Bond calls and commercial mortgage loan prepayments Other non-core items18 Core Net Investment Income Reported Yield Core Yield
18 Includes cost basis adjustments on structured securities and various other immaterial items.
24

Three

months ended

June 30,

March 31,

2020

2020

$ 77.9

$ 73.2

0.1 9.7 $ 68.1
$ 67.6

0.1 6.0 $ 67.1
$ 67.3

$ 786

$ 793

8 2 $ 776 4.65% 4.59%

16 7 $ 770 4.71% 4.57%

Exhibit 99.2

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Table of Contents
Investor Letter Use of Non-GAAP Measures Results of Operations and Selected Operating Performance Measures Financial Highlights

Page
3 4 5 6

Consolidated Quarterly Results Consolidated Net Income (Loss) by Quarter Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss) Consolidated Balance Sheets Consolidated Balance Sheets by Segment Deferred Acquisition Costs (DAC) Rollforward

8 9 10-11 12-13 14

Quarterly Results by Business Adjusted Operating Income (Loss) and Sales--U.S. Mortgage Insurance Segment Adjusted Operating Income and Sales--Australia Mortgage Insurance Segment Adjusted Operating Income (Loss)--U.S. Life Insurance Segment Adjusted Operating Income (Loss)--Runoff Segment Adjusted Operating Loss--Corporate and Other Activities

16-22 24-27 29-32
34 36

Additional Financial Data

Investments Summary

38

Fixed Maturity Securities Summary

39

General Account U.S. GAAP Net Investment Income Yields

40

Net Investment Gains (Losses), Net--Detail

41

Reconciliations of Non-GAAP Measures

Reconciliation of Operating Return On Equity (ROE)

43

Reconciliation of Reported Yield to Core Yield

44

Corporate Information

Financial Strength Ratings

46

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

2

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020
Dear Investor,
Thank you for your continued interest in Genworth Financial, Inc.
Regards,
Investor Relations InvestorInfo@genworth.com
3

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020
Use of Non-GAAP Measures
This financial supplement includes the non-GAAP financial measures entitled "adjusted operating income (loss)" and "adjusted operating income (loss) per share." Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company's segments and Corporate and Other activities. A component of the company's net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company's discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) because, in the company's opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company's opinion, they are not indicative of overall operating trends.
While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.'s common stockholders in accordance with U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth Financial, Inc.'s common stockholders or net income (loss) available to Genworth Financial, Inc.'s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company's definition of adjusted operating income (loss) may differ from the definitions used by other companies.
Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.'s common stockholders to adjusted operating income (loss) assume a 21% tax rate for the company's domestic segments and a 30% tax rate for its Australia Mortgage Insurance segment and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves (see page 41).
In the second quarter of 2020, the company recorded a goodwill impairment of $3 million, net of the portion attributable to noncontrolling interests, in its Australia mortgage insurance business.
During the second and first quarters of 2020, the company repurchased $52 million and $14 million, respectively, principal amount of Genworth Holdings, Inc.'s (Genworth Holdings) senior notes with 2021 maturity dates for a pre-tax gain of $3 million and $1 million, respectively. In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings' senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, the company's indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income (loss) as they relate to gains (losses) on the early extinguishment of debt.
The company recorded a pre-tax expense of $1 million in both the second and first quarters of 2020 and $4 million in the first quarter of 2019 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.
The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.'s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. This financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 43 and 44 of this financial supplement.
4

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020
Results of Operations and Selected Operating Performance Measures
The company's chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.'s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.
The company taxes its international businesses at their local jurisdictional tax rates and its domestic businesses at the U.S. corporate federal income tax rate of 21%. The company's segment tax methodology applies the respective jurisdictional or domestic tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign withholding taxes and permanent differences between U.S. GAAP and local tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.
The annually-determined tax rates and adjustments to each segment's provision for income taxes are estimates which are subject to review and could change from year to year.
This financial supplement contains selected operating performance measures including "sales" and "insurance in-force" or "risk in-force" which are commonly used in the insurance industry as measures of operating performance.
Management regularly monitors and reports sales metrics as a measure of volume of new business generated in a period. Sales refer to new insurance written for mortgage insurance products. The company considers new insurance written to be a measure of the company's operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of the company's revenues or profitability during that period.
Management regularly monitors and reports insurance in-force and risk in-force. Insurance in-force for the company's mortgage insurance businesses is a measure of the aggregate original loan balance for outstanding insurance policies as of the respective reporting date. Risk in-force for the company's U.S. mortgage insurance business is based on the coverage percentage applied to the estimated current outstanding loan balance. Risk in-force in the Australia mortgage insurance business is computed using an "effective" risk in-force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor of 35% that represents the highest expected average per-claim payment for any one underwriting year over the life of the company's mortgage insurance business in Australia. The company also has certain risk share arrangements in Australia where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. The company considers insurance in-force and risk in-force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.
Management also regularly monitors and reports a loss ratio for the company's businesses. For the mortgage insurance businesses, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long-term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.
These operating performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.
5

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Financial Highlights (amounts in millions, except per share data)

Balance Sheet Data
Total Genworth Financial, Inc.'s stockholders' equity, excluding accumulated other comprehensive income
Total accumulated other comprehensive income Total Genworth Financial, Inc.'s stockholders' equity
Book value per share Book value per share, excluding accumulated other comprehensive income Common shares outstanding as of the balance sheet date

June 30, 2020
$10,196 4,447
$14,643 $ 28.96 $ 20.17
505.6

March 31, 2020
$ 10,634 3,815
$ 14,449 $ 28.61 $ 21.05
505.1

December 31, 2019
$ 10,752 3,433
$ 14,185 $ 28.17 $ 21.35
503.5

September 30, 2019

$ 10,765 3,622

$ 14,387

$

28.57

$

21.38

503.5

June 30, 2019
$10,744 3,013
$13,757 $ 27.32 $ 21.34
503.5

Twelve Month Rolling Average ROE
U.S. GAAP Basis ROE Operating ROE(1)

June 30, 2020
(4.8)%
1.5%

March 31, 2020
1.0%
3.3%

Twelve months ended

December 31, 2019

September 30, 2019

3.2%

0.3%

3.9%

0.9%

June 30, 2019
1.5%
0.6%

Quarterly Average ROE
U.S. GAAP Basis ROE Operating ROE(1)

June 30, 2020
(16.9)%
(0.8)%

March 31, 2020
(2.5)%
1.2%

Three months ended December 31, 2019
(0.6)%
0.9%

September 30, 2019
0.7%
4.6%

June 30, 2019
6.3%
6.7%

Basic and Diluted Shares
Weighted-average common shares used in basic earnings per share calculations Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights
Weighted-average common shares used in diluted earnings per share calculations

Three months ended June 30, 2020
505.4
7.1 512.5

Six months ended June 30, 2020
504.8
6.3 511.1

(1) See page 43 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE. 6

Consolidated Quarterly Results
7

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Consolidated Net Income (Loss) by Quarter (amounts in millions, except per share amounts)

REVENUES: Premiums Net investment income Net investment gains (losses) Policy fees and other income
Total revenues
BENEFITS AND EXPENSES: Benefits and other changes in policy reserves Interest credited Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles Goodwill impairment Interest expense
Total benefits and expenses
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Provision (benefit) for income taxes
INCOME (LOSS) FROM CONTINUING OPERATIONS Income (loss) from discontinued operations, net of taxes(1)
NET INCOME (LOSS) Less: net income (loss) from continuing operations attributable to noncontrolling interests Less: net income from discontinued operations attributable to noncontrolling interests
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.'S COMMON STOCKHOLDERS
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.'S COMMON STOCKHOLDERS: Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.'S COMMON STOCKHOLDERS

2020

2Q

1Q Total 4Q

2019

3Q

2Q

1Q Total

$1,019 786 159 174
2,138

$1,015 793 (152) 181
1,837

$2,034 1,579 7 355
3,975

$1,033 794 23 188
2,038

$1,015 816 (2) 191
2,020

$1,001 816 (46) 223
1,994

$ 988 794 75 187
2,044

$4,037 3,220 50 789
8,096

1,486 139 223 93 5 44
1,990
148 46
102 (520)
(418) 23
--
$ (441)

1,361 141 249 116 -- 52
1,919
(82) (10)
(72) --
(72) (6)
--
$ (66)

2,847 280 472 209 5 96
3,909
66 36
30 (520)
(490) 17
--
$ (507)

1,346 138 249 164 -- 60
1,957
81 26
55 (31)
24 19 22
$ (17)

1,284 146 247 112 -- 59
1,848
172 34
138 (80)
58 10 30
$ 18

1,251 146 229 84 -- 60
1,770
224 66
158 60
218 15 35
$ 168

1,282 147 237 81 -- 60
1,807
237 69
168 62
230 20 36
$ 174

5,163 577 962 441 -- 239
7,382
714 195
519 11
530 64
123
$ 343

$ 79 (520)
$ (441)

$ (66) $ 13 $ 36 $ 128 $ 143

--

(520) (53) (110)

25

$ (66) $ (507) $ (17) $ 18 $ 168

$ 148 $ 455 26 (112)
$ 174 $ 343

Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share Basic Diluted
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share Basic Diluted
Weighted-average common shares outstanding Basic Diluted(2)

$ 0.16 $ (0.13) $ 0.03 $ 0.07 $ 0.25 $ 0.29 $ 0.29 $ 0.90 $ 0.15 $ (0.13) $ 0.03 $ 0.07 $ 0.25 $ 0.28 $ 0.29 $ 0.89

$ (0.87) $ (0.13) $ (1.00) $ (0.03) $ 0.04 $ 0.33 $ 0.35 $ 0.68 $ (0.86) $ (0.13) $ (0.99) $ (0.03) $ 0.04 $ 0.33 $ 0.34 $ 0.67

505.4 512.5

504.3 504.3

504.8 511.1

503.5 510.4

503.5 511.2

503.4 508.7

501.2 502.9 508.6 509.7

(1) Income (loss) from discontinued operations relates to the company's former Canada mortgage insurance business that was sold on December 12, 2019 and its former lifestyle protection insurance business that was sold on December 1, 2015. During the second quarter of 2020, the company recorded an after-tax loss of $520 million in connection with a settlement agreement reached with AXA S.A. (AXA), including legal fees and other expenses, regarding a dispute over payment protection insurance claims sold by its former lifestyle protection insurance business. During the fourth quarter of 2019, the company also recorded an after-tax loss of $110 million prior to reaching the settlement agreement with AXA.
(2) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.

8

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss) (amounts in millions, except per share amounts)

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.'S COMMON STOCKHOLDERS Add: net income (loss) from continuing operations attributable to noncontrolling interests Add: net income from discontinued operations attributable to noncontrolling interests
NET INCOME (LOSS) Less: income (loss) from discontinued operations, net of taxes
INCOME (LOSS) FROM CONTINUING OPERATIONS Less: net income (loss) from continuing operations attributable to noncontrolling interests
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.'S COMMON STOCKHOLDERS
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.'S COMMON STOCKHOLDERS:
Net investment (gains) losses, net(1) Goodwill impairment, net(2) (Gains) losses on early extinguishment of debt Expenses related to restructuring Taxes on adjustments
ADJUSTED OPERATING INCOME (LOSS)
ADJUSTED OPERATING INCOME (LOSS): U.S. Mortgage Insurance segment Australia Mortgage Insurance segment U.S. Life Insurance segment:
Long-Term Care Insurance Life Insurance Fixed Annuities
Total U.S. Life Insurance segment
Runoff segment Corporate and Other
ADJUSTED OPERATING INCOME (LOSS)

2Q $ (441)
23 -- (418) (520) 102
23
79
(131) 3 (3) 1
30 $ (21)
$ (3) 1
48 (81) 28 (5) 24 (38) $ (21)

2020 1Q $ (66)
(6) --
(72) --
(72) (6)

Total $ (507)
17 --
(490) (520)
30 17

(66)

13

115

(16)

--

3

12

9

1

2

(29)

1

$ 33 $ 12

$ 148 $ 145

9

10

1

49

(77) (158)

6

34

(70)

(75)

(13)

11

(41)

(79)

$ 33 $ 12

4Q $ (17)
19 22
24 (31)
55 19

3Q $ 18
10 30
58 (80)
138 10

2019 2Q $ 168
15 35
218 60
158 15

1Q $ 174
20 36
230 62
168 20

Total $ 343
64 123
530 11
519 64

36

128

143

148

455

(17) -- -- --
5
$ 24

(5) -- -- -- --
$ 123

43 -- -- --
(8)
$ 178

(71) -- --
4 14
$ 95

(50) -- --
4 11
$ 420

$ 160 $ 137 $ 147 $ 124 $ 568

12

12

13

14

51

19

21

37

(20)

57

(164) (25)

10

(2) (181)

30

3

19

17

69

(115)

(1)

66

(5) (55)

17

10

9

20

56

(50) (35) (57) (58) (200)

$ 24 $ 123 $ 178 $ 95 $ 420

Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share Basic Diluted
Adjusted operating income (loss) per share Basic Diluted
Weighted-average common shares outstanding Basic Diluted(3)

$ (0.87) $ (0.13) $ (1.00) $ (0.03) $ 0.04 $ 0.33 $ 0.35 $ 0.68 $ (0.86) $ (0.13) $ (0.99) $ (0.03) $ 0.04 $ 0.33 $ 0.34 $ 0.67

$ (0.04) $ 0.07 $ 0.02 $ 0.05 $ 0.25 $ 0.35 $ 0.19 $ 0.84 $ (0.04) $ 0.07 $ 0.02 $ 0.05 $ 0.24 $ 0.35 $ 0.19 $ 0.82

505.4 512.5

504.3 504.3

504.8 511.1

503.5 510.4

503.5 511.2

503.4 508.7

501.2 508.6

502.9 509.7

(1) Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests and DAC and other intangible amortization and certain benefit reserves (see page 41 for reconciliation).
(2) For the three and six months ended June 30, 2020, goodwill impairment was adjusted by $2 million related to the company's mortgage insurance business in Australia for the portion attributable to noncontrolling interests.
(3) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.

9

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Consolidated Balance Sheets (amounts in millions)

ASSETS Investments: Fixed maturity securities available-for-sale, at fair value(1) Equity securities, at fair value Commercial mortgage loans(2) Less: Allowance for credit losses
Commercial mortgage loans, net Policy loans Other invested assets
Total investments Cash, cash equivalents and restricted cash Accrued investment income Deferred acquisition costs Intangible assets and goodwill Reinsurance recoverable
Less: Allowance for credit losses
Reinsurance recoverable, net Other assets Deferred tax asset Separate account assets Assets held for sale related to discontinued operations(3)
Total assets

June 30, 2020

March 31, December 31, September 30, June 30,

2020

2019

2019

2019

$ 63,544 $ 59,051 $

206

188

6,945

6,944

(28)

(29)

6,917 2,182 2,473

6,915 2,052 2,465

75,322 2,597 601 1,718 223

70,671 2,483
707 1,898
263

16,944 (44)

17,122 (42)

16,900 17,080

454 286 5,536 --

456 319 4,967 --

$103,637 $ 98,844 $

60,339 $ 239
6,976 (13)
6,963 2,058 1,632
71,231 3,341 654 1,836 201
17,103 --
17,103 443 425
6,108 --
101,342 $

61,233 239
7,045 (12)
7,033 2,069 1,693
72,267 1,629
643 1,881
210 17,180
--
17,180 479 236
6,005 5,123
105,653

$ 59,491 262
7,030 (11)
7,019 2,076 1,396
70,244 1,715
595 1,980
229 17,211
--
17,211 516 383
6,187 5,246
$ 104,306

(1) Amortized cost of $54,834 million and $54,136 million as of June 30, 2020 and March 31, 2020, respectively, and allowance for credit losses of $7 million and $-- million as of June 30, 2020 and March 31, 2020, respectively.
(2) Net of unamortized balance of loan origination fees and costs of $4 million as of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019.
(3) Prior to the sale on December 12, 2019, the assets of the company's former Canada mortgage insurance business were held for sale related to discontinued operations and segregated in the consolidated balance sheets.
10

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Consolidated Balance Sheets (amounts in millions)

LIABILITIES AND EQUITY Liabilities: Future policy benefits Policyholder account balances Liability for policy and contract claims Unearned premiums Other liabilities(1) Non-recourse funding obligations Long-term borrowings Separate account liabilities Liabilities held for sale related to discontinued operations(1),(2)
Total liabilities
Equity: Common stock Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Treasury stock, at cost
Total Genworth Financial, Inc.'s stockholders' equity Noncontrolling interests
Total equity
Total liabilities and equity

June 30, 2020

March 31, December 31, September 30, June 30,

2020

2019

2019

2019

$ 41,463 $ 39,339 $

22,921 22,313

11,280 11,132

1,804

1,722

2,075

1,686

--

--

2,817

2,851

5,536

4,967

653

--

88,549 84,010

40,384 $ 22,217 10,958
1,893 1,428
311 3,277 6,108
134
86,710

40,489 22,607 10,780 1,863 1,445
311 3,706 6,005 2,302
89,508

$ 39,583 22,673 10,586 1,917 1,604 311 3,711 6,187 2,142
88,714

1 11,996
4,447 899
(2,700) 14,643
445 15,088 $ 103,637

1 11,993 3,815 1,340 (2,700) 14,449
385 14,834 $ 98,844 $

1 11,990
3,433 1,461 (2,700) 14,185
447 14,632 101,342 $

1 11,986 3,622 1,478 (2,700) 14,387 1,758 16,145 105,653

1 11,983 3,013 1,460 (2,700) 13,757 1,835 15,592 $ 104,306

(1) Certain liability balances have been reclassified as of December 31, 2019 to conform to the current period presentation. (2) Liabilities related to discontinued operations as of June 30, 2020 relates to a contingent liability recorded in connection with a settlement agreement reached with AXA
involving the sale of the company's former lifestyle protection insurance business. The company also recorded a contingent liability as of December 31, 2019 prior to reaching the settlement agreement with AXA. In addition, prior to the sale on December 12, 2019, the liabilities of the company's Canada mortgage insurance business were held for sale related to discontinued operations and segregated in the consolidated balance sheets.
11

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Consolidated Balance Sheet by Segment (amounts in millions)

ASSETS Cash and investments Deferred acquisition costs and intangible assets Reinsurance recoverable, net Deferred tax and other assets Separate account assets
Total assets
LIABILITIES AND EQUITY Liabilities: Future policy benefits Policyholder account balances Liability for policy and contract claims Unearned premiums Other liabilities Borrowings Separate account liabilities Liabilities related to discontinued operations
Total liabilities
Equity: Allocated equity, excluding accumulated other comprehensive income (loss) Allocated accumulated other comprehensive income (loss)
Total Genworth Financial, Inc.'s stockholders' equity Noncontrolling interests
Total equity
Total liabilities and equity

U.S. Mortgage Insurance

Australia Mortgage Insurance

June 30, 2020
U.S. Life Insurance Runoff

Corporate and Other(1)

Total

$ 4,831 $ 2,216 $ 66,136 $3,355 $

49

82 1,650 149

--

2 16,164 734

64

139

(121)

9

--

--

-- 5,536

$ 4,944 $ 2,439 $ 83,829 $9,783 $

1,982 11 -- 649 --
2,642

$ 78,520 1,941 16,900 740 5,536
$ 103,637

$ -- $ -- $ 41,461 $ 2 $

--

-- 19,317 3,604

439

226 10,583

25

340

994

466

4

115

192 1,142

48

--

138

--

--

--

--

-- 5,536

--

--

--

--

894 1,550 72,969 9,219

3,897

422 6,546

153

22 4,314

4,050

444 10,860

--

445

--

4,050

889 10,860

$ 4,944 $ 2,439 $ 83,829

538 26 564 -- 564 $9,783 $

-- --
7 -- 578 2,679 -- 653
3,917

$ 41,463 22,921 11,280 1,804 2,075 2,817 5,536 653
88,549

(1,207) (68)
(1,275) --
(1,275) 2,642

10,196 4,447 14,643
445 15,088 $ 103,637

(1) Includes inter-segment eliminations and other businesses that are managed outside the operating segments. 12

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Consolidated Balance Sheet by Segment (amounts in millions)

ASSETS Cash and investments Deferred acquisition costs and intangible assets Reinsurance recoverable, net Deferred tax and other assets Separate account assets Total assets
LIABILITIES AND EQUITY Liabilities: Future policy benefits Policyholder account balances Liability for policy and contract claims Unearned premiums Other liabilities Borrowings Separate account liabilities Total liabilities Equity: Allocated equity, excluding accumulated other comprehensive income (loss) Allocated accumulated other comprehensive income (loss) Total Genworth Financial, Inc.'s stockholders' equity Noncontrolling interests Total equity Total liabilities and equity

U.S. Mortgage Insurance

Australia Mortgage Insurance

March 31, 2020
U.S. Life Insurance Runoff

Corporate and Other(1)

Total

$ 4,385 48 -- 109 --
$ 4,542

$ 1,915 81 4
146 --
$ 2,146

$ 62,482 $3,634 $ 1,855 166 16,322 754 (95) (19) -- 4,967
$ 80,564 $9,502 $

1,445 11 -- 634 --
2,090

$73,861 2,161 17,080 775 4,967
$98,844

$ -- $ -- $ 39,337 $ 2 $

--

--

18,684 3,629

230

184 10,702

10

366

876

476

4

71

203

733

43

--

122

--

--

--

--

-- 4,967

667

1,385 69,932 8,655

3,891

395

6,643

(16)

(19) 3,989

3,875

376 10,632

--

385

--

3,875

761 10,632

$ 4,542 $ 2,146 $ 80,564

850 (3)
847 -- 847 $9,502 $

-- --
6 -- 636 2,729 --
3,371

$39,339 22,313 11,132 1,722 1,686 2,851 4,967
84,010

(1,145) (136)
(1,281) --
(1,281) 2,090

10,634 3,815 14,449
385 14,834 $98,844

(1) Includes inter-segment eliminations and other businesses that are managed outside the operating segments. 13

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020
Deferred Acquisition Costs Rollforward (amounts in millions)
Unamortized balance as of March 31, 2020 Costs deferred Amortization, net of interest accretion Impact of foreign currency translation Unamortized balance as of June 30, 2020 Effect of accumulated net unrealized investment (gains) losses Balance as of June 30, 2020
14

U.S. Mortgage Insurance
$ 30 3 (1)
--
32 --
$ 32

Australia Mortgage Insurance
$ 32 3 (3) 4
36 --
$ 36

U.S. Life Insurance
$ 2,954 (1) (74)
--
2,879 (1,375)
$ 1,504

Runoff
$ 158 -- -- --
158 (12)
$ 146

Total
$ 3,174 5
(78) 4
3,105 (1,387)
$ 1,718

U.S. Mortgage Insurance Segment
15

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Adjusted Operating Income (Loss) and Sales--U.S. Mortgage Insurance Segment (amounts in millions)

REVENUES: Premiums Net investment income Net investment gains (losses) Policy fees and other income
Total revenues BENEFITS AND EXPENSES: Benefits and other changes in policy reserves Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles
Total benefits and expenses INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES Provision (benefit) for income taxes INCOME (LOSS) FROM CONTINUING OPERATIONS
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: Net investment (gains) losses Taxes on adjustments ADJUSTED OPERATING INCOME (LOSS)
SALES: Flow New Insurance Written (NIW)

2020

2Q

1Q

Total

4Q

2019

3Q

2Q

1Q

Total

$ 243 $ 226 $ 469 $ 237 $ 219 $ 206 $ 194 $ 856

31

33

64

30

31

28

28

117

(1) --

(1)

1

--

--

--

1

1

2

3

1

1

1

1

4

274

261

535

269

251

235 223

978

228

19

247

11

23

--

16

50

47

50

97

50

51

44

46

191

4

4

8

4

3

4

4

15

279

73

352

65

77

48

66

256

(5) 188

183

204

174

187 157

722

(1)

40

39

43

37

40

33

153

(4) 148

144

161

137

147 124

569

1

--

1

(1)

--

--

--

(1)

--

--

--

--

--

--

--

--

$ (3) $ 148 $ 145 $ 160 $ 137 $ 147 $ 124 $ 568

$28,400 $17,900 $46,300 $18,100 $18,900 $15,800 $9,600 $62,400

16

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Flow New Insurance Written Metrics--U.S. Mortgage Insurance Segment (amounts in millions)

Product Monthly(1) Single Total Flow
FICO Scores Over 735 680-735 660-679(2) 620-659 <620 Total Flow
Loan-To-Value Ratio 95.01% and above 90.01% to 95.00% 85.01% to 90.00% 85.00% and below Total Flow
Origination Purchase Refinance Total Flow

2020

2Q

1Q

% of

% of

Flow Flow

Flow Flow

NIW NIW

NIW NIW

4Q % of
Flow Flow NIW NIW

2019 3Q
% of Flow Flow NIW NIW

2Q % of
Flow Flow NIW NIW

1Q % of
Flow Flow NIW NIW

$25,900 91% $16,400 92% $16,300 90% $16,800 89% $13,900 88% $8,400 87%

2,500 9

1,500 8

1,800 10

2,100 11

1,900 12 1,200 13

$28,400 100% $17,900 100% $18,100 100% $18,900 100% $15,800 100% $9,600 100%

$17,900 8,900 900 700 --
$28,400

63% 31
3 3 --
100%

$11,200 5,800 500 400 --
$17,900

63% 32
3 2 --
100%

$11,200 6,000 500 400 --
$18,100

62% 33 3 2 --
100%

$11,300 6,300 700 600 --
$18,900

60% 33 4 3 --
100%

$ 9,200 5,500 600 500 --
$15,800

58% 35 4 3 --
100%

$ 5,500 3,300 400 400 --
$ 9,600

57% 35 4 4 --
100%

$ 3,200 12,300 8,100 4,800
$28,400

11% 43 29 17
100%

$ 1,800 7,700 5,500 2,900
$17,900

10% 43 31 16
100%

$ 2,000 7,900 5,600 2,600
$18,100

11% 44 31 14
100%

$ 2,900 8,000 5,500 2,500
$18,900

16% 42 29 13
100%

$ 2,900 6,900 4,300 1,700
$15,800

18% 44 27 11
100%

$ 1,800 4,200 2,500 1,100
$ 9,600

19% 44 26 11
100%

$17,400 61% $12,000 67% $12,900 71% $14,900 79% $13,900 88% $8,600 90%

11,000 39

5,900 33

5,200 29

4,000 21

1,900 12 1,000 10

$28,400 100% $17,900 100% $18,100 100% $18,900 100% $15,800 100% $9,600 100%

(1) Includes loans with annual and split payment types. (2) Loans with unknown FICO scores are included in the 660-679 category.
17

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Other Metrics--U.S. Mortgage Insurance Segment (dollar amounts in millions)

Net Premiums Written
Flow New Risk Written
Primary Insurance In-Force(1)
Risk In-Force Flow(2) Bulk(3)
Total Primary Pool
Total Risk In-Force

2Q $ 217 $ 7,011 $207,400

2020 1Q
$ 208
$ 4,405
$198,500

Total $ 425
$ 11,416

4Q $ 208 $ 4,465 $192,100

3Q $ 213 $ 4,647 $186,300

2019 2Q
$ 204
$ 3,931
$178,500

1Q $ 193 $ 2,403 $170,400

Total $ 818
$ 15,446

$ 49,851 135
49,986 51
$ 50,037

$ 47,723 143
47,866 53
$ 47,919

$ 46,228 150
46,378 56
$ 46,434

$ 44,885 160
45,045 59
$ 45,104

$ 42,917 167
43,084 62
$ 43,146

$ 41,020 173
41,193 66
$ 41,259

Primary Risk In-Force That Is GSE Conforming Expense Ratio (Net Earned Premiums)(4) Expense Ratio (Net Premiums Written)(5) Flow Persistency Risk To Capital Ratio(6) PMIERs Sufficiency Ratio(7) Average Primary Loan Size (in thousands)

93%

92%

93%

93%

93%

93%

21%

24%

22%

23%

24%

24%

25%

24%

23%

26%

25%

27%

25%

24%

26%

25%

60%

76%

74%

75%

82%

86%

12.0:1

12.2:1

12.2:1

11.9:1

11.8:1

11.9:1

143%

142%

138%

129%

123%

123%

$ 229 $ 226

$ 223 $ 221 $ 218 $ 215

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

(1) Primary insurance in-force represents aggregate loan balances for outstanding insurance policies and is used to determine premiums. Original loan balances are presented for policies with level renewal premiums. Amortized loan balances are presented for policies with annual, amortizing renewal premiums.
(2) Flow risk in-force represents current loan balances as provided by servicers, lenders and investors and conforms to the presentation under the Private Mortgage Insurer Eligibility Requirements (PMIERs).
(3) As of June 30, 2020, 87% of the bulk risk in-force was related to loans finmanced by lenders who participated in the mortgage programs sponsored by the Federal Home Loan Banks. (4) The ratio of an insurer's general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and
intangibles. (5) The ratio of an insurer's general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and
intangibles. (6) Certain states limit a private mortgage insurer's risk in-force to 25 times the total of the insurer's policyholders' surplus plus the statutory contingency reserve, commonly known as the "risk to
capital" requirement. The current period risk to capital ratio is an estimate due to the timing of the filing of statutory statements and is prepared consistent with the presentation of the statutory financial statements in the combined annual statement of the U.S. mortgage insurance business. (7) The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. The current period PMIERs sufficiency ratio is an estimate due to the timing of the PMIERs filing for the U.S. mortgage insurance business. As of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, the PMIERs sufficiency ratios were in excess of $1.2 billion, $1.1 billion, $1.0 billion, $850 million, $650 million and $600 million, respectively, of available assets above the PMIERs requirements.

18

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Loss Metrics--U.S. Mortgage Insurance Segment (amounts in millions)

Paid claims Flow
Direct Assumed(1) Ceded Loss adjustment expenses
Total Flow Bulk
Total Primary Pool
Total Paid Claims

2020

2019

2Q

1Q Total 4Q

3Q

2Q

1Q Total

$ 18 -- -- 1
19 --
19 --
$ 19

$ 20 -- -- 2
22 --
22 --
$ 22

$ 38 -- -- 3
41 --
41 --
$ 41

$ 22 -- -- 2
24 1
25 --
$ 25

$ 28 -- -- 1
29 --
29 1
$ 30

$ 24 -- -- 2
26 --
26 --
$ 26

$ 30 -- -- 2
32 --
32 --
$ 32

$ 104 -- -- 7
111 1
112 1
$ 113

Average Paid Claim (in thousands)
Average Reserve Per Delinquency (in thousands) Flow Bulk loans with established reserve
Reserves: Flow direct case Bulk direct case Assumed(1) All other(2) Total Reserves

$ 47.1
$ 8.1 $ 11.3
$ 378 4 1
56 $ 439

$ 45.0
$ 14.8 $ 12.4
$ 201 4 1
24 $ 230

$ 39.2 $ 44.2 $ 45.4 $ 49.0

$ 14.1 $ 15.5 $ 16.5 $ 17.4 $ 13.4 $ 13.3 $ 14.1 $ 13.8

$ 204 4 1
24
$ 233

$ 216 4 1
26
$ 247

$ 222 4 1
27
$ 254

$ 246 4 1
29
$ 280

Beginning Reserves Paid claims Increase (decrease) in reserves Ending Reserves
Loss Ratio(3)

$ 230 (19) 228
$ 439
94%

$ 233 (22) 19
$ 230
8%

$ 233 (41) 247
$ 439
53%

$ 247 (25) 11
$ 233
4%

$ 254 (30) 23
$ 247
11%

$ 280 (26) --
$ 254
-%

$ 296 $ 296

(32) (113)

16

50

$ 280 $ 233

8% 6%

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) Assumed is comprised of reinsurance arrangements with state governmental housing finance agencies. (2) Other includes loss adjustment expenses, pool and incurred but not reported reserves. (3) The ratio of benefits and other changes in policy reserves to net earned premiums. The company recorded a favorable reserve adjustment of $13 million and a favorable adjustment to net earned
premiums of $14 million in the fourth quarter of 2019, which reduced the loss ratio by six percentage points for the three months ended December 31, 2019. The company also recorded a favorable reserve adjustment of $10 million in the second quarter of 2019, which reduced the loss ratio by five percentage points for the three months ended June 30, 2019. These adjustments reduced the loss ratio by three percentage points for the twelve months ended December 31, 2019.

19

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Delinquency Metrics--U.S. Mortgage Insurance Segment (dollar amounts in millions)

Number of Primary Delinquencies Flow Bulk loans with an established reserve Bulk loans with no reserve(1) Total Number of Primary Delinquencies
Beginning Number of Primary Delinquencies New delinquencies Delinquency cures Paid claims Ending Number of Primary Delinquencies
Composition of Cures Reported delinquent and cured-intraquarter Number of missed payments delinquent prior to cure: 3 payments or less 4 - 11 payments 12 payments or more Total
Primary Delinquencies by Missed Payment Status 3 payments or less 4 - 11 payments 12 payments or more Primary Delinquencies
Flow Delinquencies and Percentage Reserved by Payment Status 3 payments or less in default 4 - 11 payments in default 12 payments or more in default Total
Flow Delinquencies and Percentage Reserved by Payment Status 3 payments or less in default 4 - 11 payments in default 12 payments or more in default Total

2Q
53,372 422 100
53,894 15,648 48,557 (9,890)
(421) 53,894
4,012
4,588 1,128
162 9,890
43,323 7,507 3,064 53,894
Delinquencies 43,044 7,404 2,924 53,372
Delinquencies 8,524 4,836 2,849
16,209

2020 1Q
15,246 345 57
15,648
16,607 8,214 (8,699) (474)
15,648

Total
16,607 56,771 (18,589)
(895) 53,894

4Q
16,209 348 50
16,607
16,005 8,738 (7,526) (610) 16,607

2,228
4,901 1,393
177 8,699

1,681
4,457 1,179
209 7,526

7,757 4,953 2,938
15,648

8,703 4,919 2,985
16,607

June 30, 2020

Direct Case Reserves(2)

Risk In-Force

$ 162 $ 2,687

111

388

105

147

$ 378 $ 3,222

Reserves as % of Risk In-Force 6% 29% 71%
12%

December 31, 2019

Direct Case Reserves(2)

Risk In-Force

$

27 $ 386

78

224

99

145

$ 204 $ 755

Reserves as % of Risk In-Force 7% 35% 68%
27%

2019

3Q

2Q

15,575 375 55
16,005
15,482 8,650 (7,451) (676)
16,005

15,070 347 65
15,482
16,206 7,705 (7,872) (557)
15,482

1,803
4,280 1,132
236 7,451

1,621
4,567 1,434
250 7,872

8,398 4,411 3,196
16,005

7,807 4,243 3,432
15,482

1Q
15,764 360 82
16,206 17,159
8,539 (8,835)
(657) 16,206
2,342
4,862 1,345
286 8,835
7,873 4,755 3,578 16,206

Total
17,159 33,632 (31,684) (2,500) 16,607

(1) Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes they currently have no risk for claim. (2) Direct flow case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves.
20

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Portfolio Quality Metrics--U.S. Mortgage Insurance Segment

Primary Loans Primary loans in-force Primary delinquent loans Primary delinquency rate
Flow loans in-force Flow delinquent loans Flow delinquency rate
Bulk loans in-force Bulk delinquent loans Bulk delinquency rate
A minus and sub-prime loans in-force A minus and sub-prime delinquent loans A minus and sub-prime delinquency rate

2020

2019

2Q

1Q

4Q

3Q

2Q

1Q

904,753 53,894
5.96%
894,715 53,372
5.97%
10,038 522 5.20%
11,712 2,470 21.09%

876,912 15,648 1.78%
866,562 15,246 1.76%
10,350 402 3.88%
12,243 2,077 16.96%

860,214 16,607 1.93%
849,472 16,209 1.91%
10,742 398 3.71%
12,792 2,283 17.85%

842,692 16,005
1.90%
831,586 15,575
1.87%
11,106 430 3.87%
13,450 2,339 17.39%

818,358 15,482 1.89%
806,739 15,070 1.87%
11,619 412 3.55%
14,180 2,367 16.69%

792,800 16,206
2.04%
780,733 15,764
2.02%
12,067 442 3.66%
14,712 2,530 17.20%

Pool Loans Pool loans in-force Pool delinquent loans Pool delinquency rate

3,818 151 3.95%

4,071 132 3.24%

4,122 167 4.05%

4,261 168 3.94%

4,331 177 4.09%

4,470 187 4.18%

Primary Risk In-Force by Credit Quality Over 735 680-735 660-679(1) 620-659 <620

58%

58%

57%

57%

57%

57%

33%

33%

33%

33%

32%

32%

4%

4%

5%

5%

5%

5%

4%

4%

4%

4%

5%

5%

1%

1%

1%

1%

1%

1%

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

21

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Portfolio Quality Metrics--U.S. Mortgage Insurance Segment (amounts in millions)

Policy Year 2004 and prior 2005 to 2008 2009 to 2013 2014 2015 2016 2017 2018 2019 2020
Total

Average Rate(1)
6.15% 5.47% 4.23% 4.46% 4.16% 3.89% 4.25% 4.77% 4.25% 3.58%
4.29%

% of Total Reserves(2)
4.2% 30.2 2.7 3.1 5.1 9.2 11.5 12.9 18.4 2.7
100.0%

June 30, 2020

Primary Insurance

In-Force

% of Total

$

1,241

0.6%

14,017

6.8

5,461

2.6

5,719

2.8

11,858

5.7

22,566

10.9

23,845

11.5

24,767

11.9

52,068

25.1

45,816

22.1

$

207,358

100.0%

Primary Risk

In-Force

$

231

3,193

1,267

1,367

2,843

5,415

5,752

5,975

12,690

11,253

$ 49,986

% of Total 0.5% 6.4 2.5 2.7 5.7
10.8 11.5 12.0 25.4 22.5
100.0%

Delinquency Rate 13.55% 13.20% 4.55% 5.59% 5.51% 5.67% 6.55% 7.29% 5.77% 1.47%
5.96%

Lender concentration (by original applicant) Top 10 lenders Top 20 lenders
Loan-to-value ratio 95.01% and above 90.01% to 95.00% 80.01% to 90.00% 80.00% and below Total
Loan grade Prime A minus and sub-prime Total

June 30, 2020

Primary

Primary Risk In-Force

Delinquency Rate

$ 49,986

5.96%

$ 15,803

6.62%

$ 20,264

6.53%

March 31, 2020

Primary

Primary Risk In-Force

Delinquency Rate

$

47,866

1.78%

$

15,099

1.82%

$

19,410

1.75%

June 30, 2019

Primary

Primary Risk Delinquency

In-Force

Rate

$ 43,084

1.89%

$ 12,597

2.11%

$ 16,729

2.03%

$ 8,789 25,690 15,378 129
$ 49,986
$ 49,572 414
$ 49,986

7.43% $ 5.85% 5.26% 3.80% 5.96% $
5.76% $ 21.09% 5.96% $

8,482 24,707 14,540
137 47,866
47,433 433
47,866

2.00% $ 1.50% 1.37% 2.42%
1.78% $

7,837 22,389 12,699
159
43,084

1.57% $ 16.96% 1.78% $

42,587 497
43,084

3.16% 1.49% 1.59% 2.43% 1.89%
1.63% 16.69%
1.89%

(1) Average Annual Mortgage Interest Rate. (2) Total reserves were $439 million as of June 30, 2020.
22

Australia Mortgage Insurance Segment
23

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Adjusted Operating Income and Sales--Australia Mortgage Insurance Segment (amounts in millions)

REVENUES: Premiums Net investment income Net investment gains (losses) Policy fees and other income
Total revenues
BENEFITS AND EXPENSES: Benefits and other changes in policy reserves Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles Goodwill impairment Interest expense
Total benefits and expenses
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Provision (benefit) for income taxes
INCOME (LOSS) FROM CONTINUING OPERATIONS Less: net income (loss) from continuing operations attributable to noncontrolling interests
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.'S COMMON STOCKHOLDERS

2020

2019

2Q

1Q Total 4Q

3Q

2Q

$ 62 8
66 --
136

$ 69 $ 131

10

18

(53)

13

1

1

27

163

$ 72 11 19
--
102

$ 77 $ 80

13

15

(9)

1

1

--

82

96

39

24

63

22

28

26

18

17

35

18

17

17

6

8

14

6

9

9

5

--

5

--

--

--

2

1

3

2

2

2

70

50

120

48

56

54

66

(23)

43

54

26

42

20

(7)

13

16

8

13

46

(16)

30

38

18

29

23

(6)

17

19

10

15

23

(10)

13

19

8

14

1Q

Total

$ 83 $ 312

16

55

12

23

(1)

--

110

390

28

104

17

69

9

33

--

--

2

8

56

214

54

176

16

53

38

123

20

64

18

59

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.'S COMMON STOCKHOLDERS:
Net investment (gains) losses, net(1) Goodwill impairment, net(2) Taxes on adjustments
ADJUSTED OPERATING INCOME(3)

(34)

27

3

--

9

(8)

(7) (10)

5

(1)

3

--

--

--

1

3

(1) --

$ 1 $ 9 $ 10 $ 12 $ 12 $ 13

(6)

(12)

--

--

2

4

$ 14 $ 51

SALES: New Insurance Written (NIW) Flow Bulk Total Australia NIW(4),(5)

$4,400 100
$4,500

$4,100 200
$4,300

$8,500 300
$8,800

$4,900 400
$5,300

$4,600 --
$4,600

$3,700 1,200
$4,900

$3,400 500
$3,900

$ 16,600 2,100
$ 18,700

 (1)Net investment (gains) losses were adjusted for the portion of net investment gains (losses) attributable to noncontrolling interests as reconciled below:

Net investment (gains) losses, gross Adjustment for net investment gains (losses) attributable to noncontrolling interests

$ (66) $ 53 $ (13) $ (19) $ 9 $ (1) $ (12) $ (23)

32

(26)

6

9

(4) --

6

11

Net investment (gains) losses, net

$ (34) $ 27 $ (7) $ (10) $ 5 $ (1) $ (6) $ (12)

(2) For the three and six months ended June 30, 2020, goodwill impairment was adjusted by $2 million for the portion attributable to noncontrolling interests. (3) Adjusted operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $1 million and $11 million for the three and six months ended June 30,
2020, respectively. (4) New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $5,000 million and $9,500 million for the three and six months ended
June 30, 2020, respectively. (5) The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The new insurance written associated with these arrangements is excluded from
these metrics.

24

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Selected Key Performance Measures--Australia Mortgage Insurance Segment (amounts in millions)

Net Premiums Written Loss Ratio(1) Expense Ratio (Net Earned Premiums)(2) Expense Ratio (Net Premiums Written)(3)
Primary Insurance In-Force(4) Primary Risk In-Force(4),(5)
Flow Bulk
Total

2Q $ 70
63% 47% 41%

2020 1Q
$ 62 34% 36% 40%

Total $ 132
48% 41% 41%

4Q $ 92
30% 34% 26%

3Q $ 70
36% 34% 38%

2019 2Q
$ 58 34% 33% 44%

1Q $ 52
34% 31% 50%

Total $ 272
33% 33% 38%

$210,200 $188,400

$215,700 $206,400 $215,600 $219,200

$ 67,700 5,500
$ 73,200

$ 60,700 5,000
$ 65,700

$ 69,400 5,700
$ 75,100

$ 66,400 5,500
$ 71,900

$ 69,100 6,000
$ 75,100

$ 70,600 5,700
$ 76,300

Risk In-Force by Loan-To-Value Ratio(4),(6) 95.01% and above 90.01% to 95.00% 80.01% to 90.00% 80.00% and below

June 30, 2020

Primary

Flow

$ 9,613 $ 9,613

21,066

21,057

23,481

23,403

19,060

13,675

Bulk $--
9 78 5,385

March 31, 2020

Primary

Flow

Bulk

$ 8,669 $ 8,669 $ --

18,719

18,711

8

20,899

20,828

71

17,363

12,517

4,846

Total

$ 73,220 $ 67,748 $5,472

$ 65,650 $ 60,725 $ 4,925

The loss and expense ratios included above were calculated using whole dollars and may be different than the ratios calculated using the rounded numbers included herein.

(1) The ratio of benefits and other changes in policy reserves to net earned premiums. (2) The ratio of an insurer's general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization
of DAC and intangibles. (3) The ratio of an insurer's general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization
of DAC and intangibles. (4) The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The insurance in-force and risk in-force associated with these
arrangements are excluded from these metrics. The risk in-force on these transactions was approximately $162 million, $143 million, $162 million, $152 million, $157 million and $157 million as of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, respectively. (5) The business currently provides 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Australia has computed an "effective risk in-force" amount which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents the highest expected average per-claim payment for any one underwriting year over the life of the business. This factor was 35% for all periods presented. Australia also has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. (6) Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

25

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Selected Key Performance Measures--Australia Mortgage Insurance Segment (dollar amounts in millions)

Primary Insurance(1) Insured loans in-force Insured delinquent loans Insured delinquency rate
Flow loans in-force Flow delinquent loans Flow delinquency rate
Bulk loans in-force Bulk delinquent loans Bulk delinquency rate
Loss Metrics Beginning Reserves Paid claims(2) Increase in reserves Impact of changes in foreign exchange rates Ending Reserves
State and Territory(1) New South Wales Queensland Victoria Western Australia South Australia Australian Capital Territory Tasmania New Zealand Northern Territory
Total
By Policy Year(1) 2011 and prior 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total

June 30, 2020
1,236,657 7,614 0.62%
1,137,784 7,380 0.65%
98,873 234 0.24%

March 31, 2020
1,284,120 7,274 0.57%
1,183,889 7,055 0.60%
100,231 219 0.22%

June 30, 2020

$

184

(22)

39

25

$

226

March 31, 2020

$

208

(21)

24

(27)

$

184

June 30, 2020

% of Primary Risk In-Force

Primary Delinquency Rate

27%

0.51%

23

0.78%

23

0.46%

13

1.06%

6

0.70%

3

0.27%

2

0.27%

2

0.03%

1

0.87%

100%

0.62%

December 31, 2019
1,290,216 7,221 0.56%
1,189,019 7,003 0.59%
101,197 218 0.22%

September 30, 2019
1,293,961 7,713 0.60%
1,192,282 7,469 0.63%
101,679 244 0.24%

December 31, 2019

$

204

(25)

22

7

$

208

September 30, 2019

$

209

(24)

27

(8)

$

204

March 31, 2020

% of Primary Risk In-Force

Primary Delinquency Rate

27%

0.44%

23

0.75%

23

0.42%

13

1.00%

6

0.67%

3

0.25%

2

0.30%

2

0.02%

1

0.83%

100%

0.57%

June 30, 2019
1,308,811 7,891 0.60%
1,200,603 7,642 0.64%
108,208 249 0.23%

June 30, 2019

$

204

(20)

27

(2)

$

209

June 30, 2019

% of Primary Risk In-Force

Primary Delinquency Rate

27%

0.45%

23

0.81%

23

0.45%

13

1.10%

6

0.68%

3

0.25%

2

0.31%

2

0.02%

1

0.83%

100%

0.60%

44% 5 6 7 7 6 6 7 8 4
100%

0.55% 1.01% 1.12% 1.10% 0.89% 0.71% 0.57% 0.41% 0.10% 0.01%
0.62%

46% 5 6 7 7 6 6 7 8 2
100%

0.50% 0.93% 1.06% 1.05% 0.79% 0.64% 0.51% 0.35% 0.04% -- %
0.57%

48% 6 7 8 7 7 7 7 3
--
100%

0.54% 1.11% 1.10% 0.97% 0.82% 0.60% 0.36% 0.15% 0.01% -- %
0.60%

(1) The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The loans in-force, including delinquent loans, and risk in-force associated with these arrangements are excluded from these metrics.
(2) Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims.
26

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Selected Key Performance Measures--Australia Mortgage Insurance Segment (Australian dollar amounts in millions)

Paid Claims(1) Flow
Total Paid Claims

2Q
$ 35 $ 35

2020 1Q
$ 31 $ 31

Total 4Q
$ 66 $ 37 $ 66 $ 37

3Q
$ 35 $ 35

2019 2Q
$ 28 $ 28

1Q
$ 30 $ 30

Total
$ 130 $ 130

Average Paid Claim (in thousands)
Average Reserve Per Delinquency (in thousands)
Loss Metrics Beginning Reserves Paid claims(1) Increase in reserves Ending Reserves

$97.0 $43.0

$92.7 $41.3

$99.4 $41.1

$97.9 $39.2

$94.1 $37.8

$94.2 $38.4

$ 301 (35) 62
$ 328

$ 297 (31) 35
$ 301

$297 $ 302 (66) (37) 97 32
$328 $ 297

$ 298 (35) 39
$ 302

$ 288 (28) 38
$ 298

$ 279 (30) 39
$ 288

$ 279 (130) 148
$ 297

Loan Amount(2),(3) Over $550K $400K to $550K $250K to $400K $100K to $250K $100K or Less
Total
Average Primary Loan Size (in thousands)(3)
All amounts presented in Australian dollars.

21% 22 33 20
4 100%
$ 246

20% 22 32 21
5 100%
$ 240

19% 22 33 21 5
100%

19% 22 33 21
5
100%

19% 21 33 22
5
100%

18% 21 34 22 5
100%

$ 238 $ 236 $ 235 $ 233

(1) Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims. (2) The percentages in this table are based on the amount of primary insurance in-force in each loan band as a percentage of total insurance in-force. (3) The business currently has structured insurance transactions with three lenders where it is in a secondary loss position. The loans in-force associated with these
arrangements are excluded from these metrics.

27

U.S. Life Insurance Segment
28

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Adjusted Operating Income (Loss)--U.S. Life Insurance Segment (amounts in millions)

REVENUES: Premiums Net investment income Net investment gains (losses) Policy fees and other income
Total revenues BENEFITS AND EXPENSES: Benefits and other changes in policy reserves Interest credited Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles Interest expense
Total benefits and expenses INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Provision (benefit) for income taxes INCOME (LOSS) FROM CONTINUING OPERATIONS
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: Net investment (gains) losses, net(1) Losses on early extinguishment of debt Expenses related to restructuring Taxes on adjustments ADJUSTED OPERATING INCOME (LOSS)

2020

2019

2Q

1Q

Total

4Q

3Q

2Q

1Q

Total

$ 712 692 118 142
1,664

$ 718 $1,430 695 1,387 (70) 48 144 286
1,487 3,151

$ 722 705 23 153
1,603

$ 717 722 11 152
1,602

$ 713 $ 709 724 701 (36) 84 187 151
1,588 1,645

$ 2,861 2,852 82 643
6,438

1,213 97
147 83
-- 1,540
124 33 91

1,297 100 151 87 5
1,640 (153)
(27) (126)

2,510 197 298 170 5
3,180 (29) 6 (35)

1,307 101 156 150 4
1,718 (115)
(19) (96)

1,225 106 158 89 4
1,582 20 10 10

1,211 106 142 67 4
1,530 58 19 39

1,236 106 148 66 5
1,561 84 24 60

4,979 419 604 372 17
6,391 47 34 13

(121)

67 (54) (24) (14) 35 (86) (89)

--

4

4 --

--

--

--

--

--

--

--

--

--

(1)

4

3

25

(15) 10

5

3

(7) 17

18

$ (5) $ (70) $ (75) $ (115) $ (1) $ 66 $ (5) $ (55)

(1)Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:

Net investment (gains) losses, gross

$ (118) $ 70 $ (48) $ (23) $ (11) $

Adjustment for DAC and other intangible amortization and certain benefit reserves

(3)

(3)

(6)

(1)

(3)

Net investment (gains) losses, net

$ (121) $ 67 $ (54) $ (24) $ (14) $



36 $ (84) $ (82)

(1)

(2)

(7)

35 $ (86) $ (89)

29

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Adjusted Operating Income (Loss)--U.S. Life Insurance Segment--Long-Term Care Insurance (amounts in millions)

REVENUES: Premiums Net investment income Net investment gains (losses) Policy fees and other income
Total revenues BENEFITS AND EXPENSES: Benefits and other changes in policy reserves Interest credited Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles Interest expense
Total benefits and expenses INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES Provision (benefit) for income taxes INCOME (LOSS) FROM CONTINUING OPERATIONS
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses Expenses related to restructuring Taxes on adjustments ADJUSTED OPERATING INCOME (LOSS)

2Q
$ 649 422 129 --
1,200
876 -- 103
21 -- 1,000
200 49
151

2020 1Q
$ 642 419 (55) --
1,006

Total
$ 1,291 841 74 --
2,206

928 -- 101
24 --
1,053

1,804 -- 204 45 --
2,053

(47)

153

(4)

45

(43)

108

4Q
$ 663 424 19 --
1,106
925 -- 105
25 -- 1,055
51 17 34

3Q
$ 652 432 28 (2)
1,110

2019 2Q
$ 640 428 (15) 2
1,055

1Q
$ 628 406 80 --
1,114

916 -- 106 25 --
1,047

896 --
93 26 --
1,015

927 -- 101 25 --
1,053

63

40

61

19

15

19

44

25

42

Total
$ 2,583 1,690 112 -- 4,385
3,664 -- 405 101 --
4,170
215 70
145

(129) --
26
$ 48

55 -- (11)
$1

(74) -- 15
$ 49

(19) --
4
$ 19

(28) --
5
$ 21

15 (1) (2)
$ 37

(80) 2 16
$ (20)

(112) 1 23
$ 57

RATIOS: Loss Ratio(1) Gross Benefits Ratio(2)

69% 135%

78% 145%

74% 140%

76% 140%

76% 140%

74% 140%

81% 148%

77% 142%

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

30

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Adjusted Operating Income (Loss)--U.S. Life Insurance Segment--Life Insurance (amounts in millions)

REVENUES: Premiums Net investment income Net investment gains (losses) Policy fees and other income
Total revenues BENEFITS AND EXPENSES: Benefits and other changes in policy reserves Interest credited Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles Interest expense
Total benefits and expenses INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Provision (benefit) for income taxes INCOME (LOSS) FROM CONTINUING OPERATIONS
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: Net investment (gains) losses Losses on early extinguishment of debt Expenses related to restructuring Taxes on adjustments ADJUSTED OPERATING INCOME (LOSS)

2Q
$ 63 127 5 140 335

2020 1Q

Total 4Q

$ 76 130 1 141
348

$ 139 257 6 281
683

$ 59 128 6 150
343

2019

3Q

2Q

1Q

Total

$ 65 133 (2) 151
347

$ 73 130 (3) 182
382

$ 81 133 10 148
372

$ 278 524 11 631
1,444

289

302 591 335 228 244 242 1,049

57

59 116 58

60 58 58

234

34

39

73 39

40 37 34

150

53

44

97 109

50 28 27

214

--

5

5

4

4

4

5

17

433

449 882 545 382 371 366 1,664

(98)

(101) (199) (202) (35) 11

6 (220)

(21)

(22) (43) (43)

(8) 3

1

(47)

(77)

(79) (156) (159) (27) 8

5 (173)

(5) -- --
1
$ (81)

(1) 4 -- (1)
$ (77)

(6) 4 -- --
$(158)

(6) -- --
1
$(164)

2 -- -- --
$ (25)

3 -- --
(1)
$ 10

(10) --
1 2
$ (2)

(11) --
1 2
$ (181)

31

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Adjusted Operating Income--U.S. Life Insurance Segment--Fixed Annuities (amounts in millions)

REVENUES: Premiums Net investment income Net investment gains (losses) Policy fees and other income
Total revenues BENEFITS AND EXPENSES: Benefits and other changes in policy reserves Interest credited Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles Interest expense
Total benefits and expenses INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Provision (benefit) for income taxes INCOME (LOSS) FROM CONTINUING OPERATIONS
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: Net investment (gains) losses, net(1) Expenses related to restructuring Taxes on adjustments ADJUSTED OPERATING INCOME

2020

2Q

1Q

Total 4Q

2019

3Q

2Q

1Q Total

$-- 143 (16) 2
129

$-- 146 (16) 3
133

$-- 289 (32) 5
262

$-- 153 (2) 3
154

$-- 157 (15) 3
145

$-- 166 (18) 3
151

$-- 162 (6) 3
159

$-- 638 (41) 12
609

48 67 115 47

40 41

81 43

10 11 9 19
-- --

21 12 28 16 -- --

107 138 245 118

22 (5) 17 36

5 (1)

4

7

17 (4) 13 29

81 71 46 48 12 12 14 13 -- -- 153 144 (8) 7 (1) 1 (7) 6

67 266 48 185 13 49 14 57 -- -- 142 557 17 52 4 11 13 41

13 --
(2)
$ 28

13 --
(3)
$6

26 --
(5)
$ 34

1 -- --
$ 30

12 --
(2)
$3

17 --
(4)
$ 19

4 1 (1)
$ 17

34 1 (7)
$ 69

(1)Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:

Net investment (gains) losses, gross Adjustment for DAC and other intangible amortization and certain benefit reserves

$ 16 $ 16 $ 32 $ 2 $ 15

(3) (3)

(6) (1)

(3)

Net investment (gains) losses, net

$ 13 $ 13 $ 26 $ 1 $ 12



$ 18 (1)
$ 17

$6 (2)
$4

$ 41 (7)
$ 34

32

Runoff Segment
33

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Adjusted Operating Income (Loss)--Runoff Segment (amounts in millions)

REVENUES: Net investment income Net investment gains (losses) Policy fees and other income
Total revenues BENEFITS AND EXPENSES: Benefits and other changes in policy reserves Interest credited Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles
Total benefits and expenses INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Provision (benefit) for income taxes INCOME (LOSS) FROM CONTINUING OPERATIONS

2020

2019

2Q

1Q

Total 4Q

3Q

2Q

1Q

$54 $ 49 $103 $ 45 $ 48 $ 47 $ 47

4

(75) (71) (12) (9) (4) --

32

33

65 35 35 35

35

90

7

97 68 74 78

82

4

20

24

5

8 13

1

42

41

83 37 40 40

41

11

13

24 13 13 13

13

(1)

17

16

2 10

4

2

56

91 147 57 71 70

57

34

(84) (50) 11

3

8

25

6

(18) (12) 2 --

1

5

28

(66) (38) 9

3

7

20

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: Net investment (gains) losses, net(1) Taxes on adjustments
ADJUSTED OPERATING INCOME (LOSS)

(5)

67

62 10

9

2 --

1

(14) (13) (2) (2) --

--

$24 $(13) $ 11 $ 17 $ 10 $ 9 $ 20

(1)Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:

Net investment (gains) losses, gross Adjustment for DAC and other intangible amortization and certain benefit reserves

$ (4) $ 75 $ 71 $ 12 $ 9

(1)

(8)

(9) (2) --

Net investment (gains) losses, net

$ (5) $ 67 $ 62 $ 10 $ 9


$ 4 $-- (2) --
$ 2 $--

Total
$ 187 (25) 140 302
27 158
52 18 255 47 8 39
21 (4) $ 56
$ 25 (4)
$ 21

34

Corporate and Other
35

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020
Adjusted Operating Loss--Corporate and Other(1) (amounts in millions)

REVENUES: Premiums Net investment income Net investment gains (losses) Policy fees and other income
Total revenues BENEFITS AND EXPENSES: Benefits and other changes in policy reserves Acquisition and operating expenses, net of deferrals Amortization of deferred acquisition costs and intangibles Interest expense
Total benefits and expenses LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Provision (benefit) for income taxes LOSS FROM CONTINUING OPERATIONS
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS: Net investment (gains) losses (Gains) losses on early extinguishment of debt Expenses related to restructuring Taxes on adjustments ADJUSTED OPERATING LOSS

2020

2Q

1Q Total 4Q

2019

3Q

2Q

1Q Total

$2 1
(28) (1)
(26)

$2 6
46 1
55

$4 7 18
--
29

$2 3 (8) (1)
(4)

$2 2 5 2
11

$2 2 (7)
--
(3)

$2 2
(21) 1
(16)

$8 9
(31) 2
(12)

2

1

3

1 --

1

1

3

--

18 18 12

8 13 13

46

1 --

1

2

1-- --

3

42 46 88 54 53 54 53 214

45 65 110 69 62 68 67 266

(71) (10) (81) (73) (51) (71) (83) (278)

(12) 2 (10) (16) (21) (7) (9) (53)

(59) (12) (71) (57) (30) (64) (74) (225)

28 (3) 1 (5)
$ (38)

(46) 8 1 8
$ (41)

(18) 5 2 3
$ (79)

8 -- --
(1)
$ (50)

(5) -- -- --
$ (35)

7 --
1 (1)
$ (57)

21 -- --
(5)
$ (58)

31 --
1 (7)
$(200)

(1) Includes inter-segment eliminations and the results of other businesses that are managed outside the operating segments, including certain smaller international mortgage insurance businesses.
36

Additional Financial Data
37

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Investments Summary (amounts in millions)

Composition of Investment Portfolio

Fixed maturity securities:

Investment grade: Public fixed maturity securities(1)

Private fixed maturity securities Residential mortgage-backed securities(2)

Commercial mortgage-backed securities

Other asset-backed securities State and political subdivisions(1)

Non-investment grade fixed maturity securities Equity securities:

Common stocks and mutual funds

Preferred stocks

Commercial mortgage loans, net

Policy loans

Cash, cash equivalents, restricted cash and short-term investments

Securities lending Other invested assets:

Limited partnerships

Derivatives:

Interest rate swaps

Foreign currency swaps

Equity index options

Other foreign currency contracts

Other

Total invested assets and cash

Public Fixed Maturity Securities--Credit Quality: NRSRO(3) Designation AAA AA A BBB BB B CCC and lower
Total public fixed maturity securities

Private Fixed Maturity Securities--Credit Quality: NRSRO(3) Designation AAA AA A BBB BB B CCC and lower
Total private fixed maturity securities

June 30, 2020 Carrying % of Amount Total

March 31, 2020 Carrying % of Amount Total

December 31, 2019 Carrying % of Amount Total

September 30, 2019 Carrying % of Amount Total

June 30, 2019 Carrying % of Amount Total

$ 35,802 13,952 2,151 2,952 2,921 2,998 2,768
104 102 6,917 2,182 2,809 59 764
939 17 66
2 414
$ 77,919

45% 18 3 4 4 4 4
-- --
9 3 3 -- 1
1 -- -- --
1
100%

$ 33,056 12,736 2,243 2,963 3,061 2,864 2,128
91 97 6,915 2,052 2,696 58 671
1,002 21 62 16 422
$ 73,154

46% $ 17 3 4 4 4 3

33,684 13,384 2,232 3,006 3,257 2,747 2,029

--

105

--

134

10

6,963

3

2,058

3

3,601

--

51

1

634

1 -- -- --
1
100% $

197 4 81 8
397
74,572

45% $ 18 3 4 4 4 3

34,280 13,411 2,335 3,051 3,337 2,729 2,090

--

107

--

132

9

7,033

3

2,069

5

1,839

--

62

1

565

-- -- -- --
1
100% $

402 10 62 13 369
73,896

46% $ 32,958

18

13,091

3

2,395

4

2,970

5

3,287

4

2,636

3

2,154

--

111

--

151

10

7,019

3

2,076

2

1,907

--

113

1

512

1 -- -- -- --
100%

144 5 65 8
357
$ 71,959

46% 18 3 4 5 4 3
-- --
10 3 3 -- 1
-- -- -- -- --
100%

$ 10,805 3,636
11,970 16,780
1,506 73 24
$ 44,794

25% 8 27 37 3 -- --
100%

$ 11,025 3,554 11,268 14,807 1,139 50 21
$ 41,864

27% $ 8 27 35 3 -- --
100% $

10,160 3,536 12,315 15,041 1,040
44 26
42,162

24% $ 8 29 36 3 -- --
100% $

10,561 3,758 12,040 15,418 1,093
53 25
42,948

25% 9 28 35 3 -- --
100%

$ 10,195 3,674 11,690 14,768 1,128 76 25
$ 41,556

24% 9 28 36 3 -- --
100%

$ 1,526 2,209 5,320 8,530 994 160 11
$ 18,750

8% 12 28 46 5 1 --
100%

$ 1,382 2,090 4,914 7,883 819 98 1
$ 17,187

8% $ 12 28 46 5 1 --
100% $

1,536 2,235 5,182 8,305
844 73 2
18,177

8% $ 12 29 46 5 -- --
100% $

1,594 2,254 5,296 8,222
851 66 2
18,285

9% 12 29 45 5 -- --
100%

$ 1,504 2,315 5,286 7,905 865 58 2
$ 17,935

8% 13 30 44 5 -- --
100%

(1) Certain fixed maturity securities balances have been reclassified as of December 31, 2019 to conform to the current period presentation. (2) The company does not have any material exposure to residential mortgage-backed securities collateralized debt obligations (CDOs). (3) Nationally Recognized Statistical Rating Organizations.
38

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Fixed Maturity Securities Summary (amounts in millions)

Fixed Maturity Securities--Security Sector:
U.S. government, agencies and government-sponsored enterprises State and political subdivisions(1) Foreign government U.S. corporate(1) Foreign corporate Residential mortgage-backed securities Commercial mortgage-backed securities Other asset-backed securities
Total fixed maturity securities
Corporate Bond Holdings--Industry Sector:
Investment Grade: Finance and insurance Utilities Energy Consumer--non-cyclical Consumer--cyclical Capital goods Industrial Technology and communications Transportation Other(1)
Subtotal
Non-Investment Grade: Finance and insurance Utilities Energy Consumer--non-cyclical Consumer--cyclical Capital goods Industrial Technology and communications Transportation Other
Subtotal
Total
Fixed Maturity Securities--Contractual Maturity Dates:
Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years
Subtotal Mortgage and asset-backed securities
Total fixed maturity securities

June 30, 2020 % of
Fair Value Total

March 31, 2020 % of
Fair Value Total

December 31, 2019 % of
Fair Value Total

September 30, 2019 % of
Fair Value Total

June 30, 2019 % of
Fair Value Total

$ 5,602 2,998 1,542 34,395 10,885 2,184 2,970 2,968
$ 63,544

9% 5 2 54 17 3 5 5
100%

$ 5,771 2,864 1,201 31,077 9,799 2,273 2,981 3,085
$ 59,051

10% $ 5 2 52 17 4 5 5
100% $

5,025 2,747 1,350 32,111 10,525 2,270 3,026 3,285
60,339

8% $ 5 2 54 17 4 5 5
100% $

5,254 2,729 1,359 32,424 10,656 2,375 3,071 3,365
61,233

9% $ 4 2 54 17 4 5 5
100% $

4,987 2,636 1,336 31,329 10,462 2,436 2,989 3,316
59,491

8% 4 2 53 18 4 5 6
100%

$ 10,611 6,052 3,193 6,836 2,076 3,511 2,210 4,221 2,151 1,847
42,708

23% $ 13 7 15 5 8 5 9 5 4

9,523 5,555 2,799 6,163 1,856 3,076 2,063 3,966 2,047 1,855

94

38,903

23% $ 14 7 15 4 8 5 10 5 4
95

9,881 5,743 3,699 6,247 1,937 3,161 2,201 3,966 2,127 1,839
40,801

23% $ 14 9 15 5 7 5 9 5 4
96

9,995 5,868 3,801 6,293 2,003 3,243 2,188 3,919 2,189 1,691
41,190

258 97 676 218 297 130 288 437 49 122
2,572
$ 45,280

1 --
1 1 1 -- 1 1 -- --
6
100%

211 77
391 196 225 149 193 418
29 84
1,973
$ 40,876

1 --
1 1 1 -- -- 1 -- --
5
100% $

212 83 319 138 220 155 183 417 8 100
1,835
42,636

1 --
1 --
1 -- --
1 -- --
4
100% $

208 85 346 138 233 137 224 425
8 86
1,890
43,080

22% $ 9,669 23%

14

5,697 14

9

3,732

9

15

6,043 14

5

1,836

4

8

3,108

7

5

2,093

5

9

3,821 10

5

2,121

5

4

1,719

4

96

39,839 95

-- --
1 --
1 --
1 1 -- --
4
100% $

216 100 331 155 243 157 207 465
8 70
1,952
41,791

1 --
1 --
1 -- --
2 -- --
5
100%

$ 1,517 10,054 14,478 29,373
55,422 8,122
$ 63,544

2% 16 23 46
87 13
100%

$ 1,421 8,949 12,642 27,700
50,712 8,339
$ 59,051

2% $ 15 21 48
86 14
100% $

1,434 9,381 12,296 28,647
51,758 8,581
60,339

2% $ 16 20 48
86 14
100% $

1,587 9,655 12,387 28,793
52,422 8,811
61,233

3% $ 16 20 47
86 14
100% $

1,684 9,689 11,985 27,392
50,750 8,741
59,491

3% 16 20 46
85 15
100%

(1) Certain fixed maturity securities balances have been reclassified as of December 31, 2019 to conform to the current period presentation.
39

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

General Account U.S. GAAP Net Investment Income Yields (amounts in millions)

U.S. GAAP Net Investment Income Fixed maturity securities--taxable Fixed maturity securities--non-taxable Commercial mortgage loans Equity securities Other invested assets Limited partnerships Policy loans Cash, cash equivalents, restricted cash and short-term investments
Gross investment income before expenses and fees Expenses and fees
Net investment income
Annualized Yields Fixed maturity securities--taxable Fixed maturity securities--non-taxable Commercial mortgage loans Equity securities Other invested assets(1) Limited partnerships(2) Policy loans Cash, cash equivalents, restricted cash and short-term investments
Gross investment income before expenses and fees Expenses and fees
Net investment income

2Q
$ 601 1 84 2 52 14 49 4
807 (21) $ 786

2020 1Q
$ 622 2
85 2
49 (2) 49 11 818 (25) $ 793

Total
$ 1,223 3
169 4
101 12 98 15 1,625 (46) $ 1,579

4Q
$ 616 2 94 3 50 4 42 9
820 (26) $ 794

3Q
$ 631 2
87 4
49 13 47
8 841 (25) $ 816

2019 2Q
$ 634 2
85 5
47 12 45 11 841 (25) $ 816

1Q

Total

$ 613 2
82 4
44 15 46 11
817 (23)
$ 794

$ 2,494 8
348 16 190 44 180 39
3,319 (99)
$ 3,220

4.4% 2.6% 4.9% 4.1% 49.8% 7.8% 9.3% 0.6%
4.8% (0.1)%
4.7%

4.6% 5.2% 4.9% 3.8% 47.8% (1.2)% 9.5% 1.4%
4.9% (0.2)%
4.7%

4.5% 4.1% 4.9% 3.8% 49.0% 3.5% 9.3% 1.0%
4.8% (0.1)%
4.7%

4.6% 6.0% 5.4% 5.0% 52.2% 2.7% 8.1% 1.3%
4.9% (0.2)%
4.7%

4.7% 6.1% 5.0% 6.4% 54.0% 9.7% 9.1% 1.7%
5.1% (0.2)%
4.9%

4.7% 6.1% 4.9% 7.8% 56.1% 9.9% 8.8% 2.2%
5.1% (0.1)%
5.0%

4.6% 6.1% 4.8% 6.1% 65.7% 13.8% 9.5% 2.1%
5.0% (0.2)%
4.8%

4.6% 6.1% 5.0% 6.3% 57.2% 8.5% 8.9% 1.7%
5.0% (0.1)%
4.9%

Yields are based on net investment income as reported under U.S. GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability. See page 44 herein for average invested assets and cash used in the yield calculation.

(1) Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation.
(2) Limited partnership investments are primarily equity-based and do not have fixed returns by period.

40

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Net Investment Gains (Losses), Net--Detail (amounts in millions)

Net realized gains (losses) on available-for-sale securities: Fixed maturity securities: U.S. corporate U.S. government, agencies and government-sponsored enterprises Foreign corporate Foreign government State and political subdivisions Mortgage-backed securities Asset-backed securities Foreign exchange
Total net realized gains (losses) on available-for-sale securities
Impairments: Bank loans
Total impairments
Net change in allowance for credit losses on available-for-sale fixed maturity securities Net realized gains (losses) on equity securities sold Net unrealized gains (losses) on equity securities still held Limited partnerships Commercial mortgage loans Derivative instruments Other
Net investment gains (losses), gross Adjustment for DAC and other intangible amortization and certain benefit reserves Adjustment for net investment (gains) losses attributable to noncontrolling interests
Net investment gains (losses), net

2020

2Q

1Q Total 4Q

2019

3Q

2Q

1Q Total

$2 94 4 10 -- 4 (2) 2
114

$2 -- -- 5 -- -- -- 6
13

$4 94 4 15
-- 4 (2) 8
127

$ (2) -- 1 4 -- -- -- 2
5

$ 11 -- 1 2 -- 1 -- 1
16

$ (16) 2 (1) 2
-- 1
-- 1
(11)

$ 30 33 (1) -- -- (2) (1) (1)
58

$ 23 35 -- 8 -- -- (1) 3
68

--
--
(7) --
9 37
1 10 (5)
159 4
(32)
$ 131

--
--
-- -- (19) (40) -- (105)
(1)
(152) 11 26
$(115)

--
--
(7) -- (10)
(3) 1 (95) (6)
7 15 (6)
$ 16

(1)
(1)
-- --
1 19 (1) (1)
1
23 3 (9)
$ 17

--
--
-- 6 (4) 6 (1)
(29) 4
(2) 3 4
$5

--
--
-- --
5 (11)
1 (30) --
(46) 3
--
$ (43)

--
--
-- 3 12 15 (1)
(12) --
75 2 (6)
$ 71

(1)
(1)
-- 9 14 29 (2)
(72) 5
50 11 (11)
$ 50

41

Reconciliations of Non-GAAP Measures
42

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Reconciliation of Operating ROE (amounts in millions)

Twelve Month Rolling Average ROE
U.S. GAAP Basis ROE Net income (loss) available to Genworth Financial, Inc.'s common stockholders for the twelve
months ended(1) Quarterly average Genworth Financial, Inc.'s stockholders' equity, excluding accumulated other
comprehensive income(2) U.S. GAAP Basis ROE(1)/(2)
Operating ROE Adjusted operating income for the twelve months ended(1) Quarterly average Genworth Financial, Inc.'s stockholders' equity, excluding accumulated other
comprehensive income(2) Operating ROE(1)/(2)

June 30, 2020

March 31, 2020

Twelve months ended

December 31,

September 30,

2019

2019

June 30, 2019

$ (506) $ 103

$

343

$

$ 10,618

$ 10,695

$ 10,650

$

(4.8)%

1.0%

3.2%

31
10,646 0.3%

$ 159
$ 10,609 1.5%

$ 159

$ 358

$

420

$

$ 10,618

$ 10,695

$ 10,650

$

1.5%

3.3%

3.9%

91
10,646 0.9%

$ 67
$ 10,609 0.6%

Quarterly Average ROE
U.S. GAAP Basis ROE Net income (loss) available to Genworth Financial, Inc.'s common stockholders for the period
ended(3) Quarterly average Genworth Financial, Inc.'s stockholders' equity for the period, excluding
accumulated other comprehensive income(4) Annualized U.S. GAAP Quarterly Basis ROE(3)/(4)
Operating ROE Adjusted operating income (loss) for the period ended(3) Quarterly average Genworth Financial, Inc.'s stockholders' equity for the period, excluding
accumulated other comprehensive income(4) Annualized Operating Quarterly Basis ROE(3)/(4)

June 30, 2020

March 31, 2020

Three months ended

December 31,

September 30,

2019

2019

June 30, 2019

$ (441) $ (66) $

$ 10,415

$ 10,693

$

(16.9)%

(2.5)%

(17) $

10,759

$

(0.6)%

18
10,755 0.7%

$ 168
$ 10,663 6.3%

$ (21) $ 33

$

24

$

$ 10,415

$ 10,693

$ 10,759

$

(0.8)%

1.2%

0.9%

123
10,755 4.6%

$ 178
$ 10,663 6.7%

Non-GAAP Definition for Operating ROE
The company references the non-GAAP financial measure entitled "operating return on equity" or "operating ROE." The company defines operating ROE as adjusted operating income (loss) divided by average ending Genworth Financial, Inc.'s stockholders' equity, excluding accumulated other comprehensive income (loss) in average ending Genworth Financial, Inc.'s stockholders' equity. Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE is not a substitute for net income (loss) available to Genworth Financial, Inc.'s common stockholders divided by average ending Genworth Financial, Inc.'s stockholders' equity determined in accordance with U.S. GAAP.
(1) The twelve months ended information is derived by adding the four quarters of net income (loss) available to Genworth Financial, Inc.'s common stockholders and adjusted operating income (loss) from page 9 herein.
(2) Quarterly average Genworth Financial, Inc.'s stockholders' equity, excluding accumulated other comprehensive income, is derived by averaging ending Genworth Financial, Inc.'s stockholders' equity, excluding accumulated other comprehensive income, for the most recent five quarters.
(3) Net income (loss) available to Genworth Financial, Inc.'s common stockholders and adjusted operating income (loss) from page 9 herein. (4) Quarterly average Genworth Financial, Inc.'s stockholders' equity, excluding accumulated other comprehensive income, is derived by averaging ending Genworth Financial, Inc.'s
stockholders' equity, excluding accumulated other comprehensive income.
43

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Reconciliation of Reported Yield to Core Yield

(Assets--amounts in billions) Reported--Total Invested Assets and Cash Subtract:
Securities lending Unrealized gains (losses)

2Q
$77.9

2020
1Q
$73.2

Total
$ 77.9

4Q
$74.6

3Q
$73.9

2019
2Q
$72.0

1Q
$69.5

Total
$ 74.6

0.1

0.1

0.1 0.1 0.1 0.1 0.1

0.1

9.7

6.0

9.7 6.9 7.5 5.7 3.7

6.9

Adjusted end of period invested assets and cash

$68.1 $67.1 $ 68.1 $67.6 $66.3 $66.2 $65.7 $ 67.6

(A)

Average Invested Assets and Cash Used in Reported and Core Yield Calculation $67.6 $67.3 $ 67.6 $66.9 $66.2 $66.0 $65.7 $ 66.3

(Income--amounts in millions)

(B)

Reported--Net Investment Income

Subtract:

Bond calls and commercial mortgage loan prepayments Other non-core items(1)

(C)

Core Net Investment Income

$ 786 $ 793 $1,579 $ 794 $ 816 $ 816 $ 794 $3,220

8 2 $ 776

16 7
$ 770

24 9
$ 1,546

23

13

(2)

8

$ 773 $ 795

7 7 $ 802

6 2 $ 786

49 15 $ 3,156

(B) / (A) Reported Yield (C) / (A) Core Yield

4.65% 4.71% 4.67% 4.74% 4.93% 4.95% 4.83% 4.86% 4.59% 4.57% 4.57% 4.62% 4.80% 4.86% 4.79% 4.76%

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.

44

Corporate Information
45

GENWORTH FINANCIAL, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2020

Financial Strength Ratings As Of July 28, 2020

Company Genworth Mortgage Insurance Corporation Genworth Financial Mortgage Insurance Pty Limited (Australia)(1) Genworth Life Insurance Company Genworth Life and Annuity Insurance Company Genworth Life Insurance Company of New York

Standard & Poor's Financial Services LLC (S&P) BB+ (Marginal) A (Strong) N/A N/A N/A

Moody's Investors Service, Inc. (Moody's)
Baa3 (Adequate) N/A N/A N/A N/A

A.M. Best Company, Inc. (A.M. Best) N/A N/A
C++ (Marginal) B (Fair)
C++ (Marginal)

The S&P, Moody's, A.M. Best, HR Ratings and Fitch Rating Service (Fitch) ratings included herewith represent those solicited by the company and are not designed to be, and do not serve as, measures of protection or valuation offered to investors. These financial strength ratings should not be relied on with respect to making an investment in the company's securities.

S&P states that an insurer rated "A" (Strong) has strong financial security characteristics that outweigh any vulnerabilities and is highly likely to have the ability to meet financial commitments. Insurers rated "A" (Strong) or "BB" (Marginal) have strong or marginal financial security characteristics, respectively. The "A" and "BB" ranges are the third- and fifthhighest of nine financial strength rating ranges assigned by S&P, which range from "AAA" to "R." A plus (+) or minus (-) shows relative standing within a rating category. These suffixes are not added to ratings in the "AAA" category or to ratings below the "CCC" category. Accordingly, the "A" and "BB+" ratings are the sixth- and eleventh-highest of S&P's 21 ratings categories.

Moody's states that insurance companies rated "Baa" (Adequate) offer adequate financial security. The "Baa" (Adequate) range is the fourth-highest of nine financial strength rating ranges assigned by Moody's, which range from "Aaa" to "C." Numeric modifiers are used to refer to the ranking within the groups, with 1 being the highest and 3 being the lowest. These modifiers are not added to ratings in the "Aaa" category or to ratings below the "Caa" category. Accordingly, the "Baa3" rating is the tenth-highest of Moody's 21 ratings categories.

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

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

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

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

(1) Genworth Financial Mortgage Insurance Pty Limited (Australia) is also rated "A" by Fitch.

46