Form 8-K GENWORTH FINANCIAL INC For: Apr 28

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April 28, 2015 5:15 PM EDT

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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

April 28, 2015

Date of Report

(Date of earliest event reported)

LOGO

GENWORTH FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-32195

80-0873306

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)


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

(804) 281-6000

(Registrant’s telephone number, including area code)

N/A

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

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

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

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

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

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

Item 2.02

Results of Operations and Financial Condition.

On April 28, 2015, Genworth Financial, Inc. issued (1) a press release announcing its financial results for the quarter ended March 31, 2015, 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 March 31, 2015, 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 the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01

Financial Statements and Exhibits.

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


Exhibit Number		Description of Exhibit

99.1		Press Release dated April 28, 2015.

99.2		Financial Supplement for the quarter ended March 31, 2015.

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: April 28, 2015	By:	/s/ Kelly L. Groh
		Kelly L. Groh
		Vice President and Controller
		(Principal Accounting Officer)

Exhibit Index


Exhibit Number		Description of Exhibit

99.1		Press Release dated April 28, 2015.

99.2		Financial Supplement for the quarter ended March 31, 2015.

Exhibit 99.1

LOGO

Genworth Financial Announces First Quarter 2015 Results

Net Income Of $154 Million, Or $0.31 Per Share

Results Reflect Favorable Mortality In U.S. Life Insurance & Strong Mortgage Insurance Loss Ratios

•

Progress Made On Review Of Strategic Options

•

Achieved Targeted $250 To $300 Million Premium Increase Approvals On 2012 Long Term Care Insurance In Force Rate Action

•

Received $132 Million Of Dividends From Operating Companies; Maintained Solid Capital Positions And Significant Holding Company Liquidity

•

Will Comply With Final U.S. Mortgage Insurer Eligibility Requirements By Effective Date

Richmond, VA (April 28, 2015) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the period ended March 31, 2015. The company reported net income¹ of $154 million, or $0.31 per diluted share, compared with net income of $184 million, or $0.37 per diluted share, in the first quarter of 2014. Net operating income² for the first quarter of 2015 was $156 million, or $0.31 per diluted share, compared with net operating income of $194 million, or $0.39 per diluted share, in the first quarter of 2014.

Strategic Update

The company continues to make progress on its review of strategic options in order to position the company for future success and is actively engaged in three areas: (1) strengthening its mortgage insurance businesses and long term care insurance (LTC) capital, earnings and sales; (2) simplifying the business portfolio; and (3) increasing its financial strength and flexibility. In addition, the company continues to pursue the planned sale of its non-core lifestyle protection insurance business. The company

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

²	This is a financial measure 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.

believes the execution of these strategic initiatives will improve operating returns, support compliance with the Private Mortgage Insurer Eligibility Requirements (PMIERs), reduce debt levels, increase LTC capital buffers and maintain solid holding company cash levels.

As disclosed on April 17, 2015, the company estimates $500 to $700 million of additional capital will be required to be fully compliant with the final PMIERs by the effective date of December 31, 2015. The company will comply with the final PMIERs by the effective date and intends to utilize both reinsurance and holding company cash to meet the additional capital requirement.

“Regarding the quarter, we are encouraged with the results in spite of continued challenges and remain focused on initiatives aimed at strengthening and building our businesses,” said Tom McInerney, President and CEO. “During the first quarter, we made significant progress on our strategic review and are developing next steps to position the company for future success. We look forward to updating you on specific actions as appropriate.”


Consolidated Net Income & Net Operating Income
	Three months ended March 31 (Unaudited)
	2015				2014
(Amounts in millions, except per share)	Total		Per diluted share		Total		Per diluted share		Total % change

Net income available to Genworth’s common stockholders	$	154	$	0.31	$	184	$	0.37		(16	)%
Adjustment: Net income attributable to noncontrolling interests in Australia mortgage insurance (MI)		21		0.04		N/A		N/A		N/A

Net income available to Genworth’s common stockholders before net income attributable to noncontrolling interests in Australia MI²	$	175	$	0.35	$	184	$	0.37		(5	)%

Net operating income	$	156	$	0.31	$	194	$	0.39		(20	)%
Adjustment: Net operating income attributable to noncontrolling interests in Australia MI		21		0.04		N/A		N/A		N/A

Net operating income before net operating income attributable to noncontrolling interests in Australia MI²	$	177	$	0.35	$	194	$	0.39		(9	)%
Weighted average diluted shares		498.9				502.7


	Three months ended March 31 (Unaudited)
	2015		2014
Book value per share	$	30.81	$	31.27
Book value per share, excluding accumulated other comprehensive income (loss)	$	21.38	$	24.25

Net investment losses, net of taxes and other adjustments, were $2 million in the quarter, compared to $10 million in the prior year. Net investment income decreased to $803 million, compared to $819 million in the prior quarter primarily from lower reinvestment rates and unfavorable foreign exchange. The reported yield for the current quarter was 4.51 percent. The core yield² was down compared to the prior quarter at 4.28 percent.

Net operating income (loss) results are summarized in the table below:


Net Operating Income (Loss)
(Amounts in millions)	Q1 15			Q4 14			Q1 14
Global Mortgage Insurance Division	$	116	³	$	83	³	$	132
U.S. Life Insurance Division		81			(482	)		94
Corporate and Other Division		(41	)		(17	)		(32	)

Total Net Operating Income (Loss)	$	156		$	(416	)	$	194

Net operating income (loss) excludes 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 operating income (loss) of segments and Corporate and Other activities to net income (loss) is included at the end of this press release.

Unless specifically noted in the discussion of results for the International Mortgage Insurance and International Protection segments, references to percentage changes exclude the impact of translating foreign denominated activity into U.S. dollars (foreign exchange). Percentage changes, which include the impact of foreign exchange, are found in a table at the end of this press release. The impact of foreign exchange on results in the first quarter of 2015 was an unfavorable impact of $7 million versus the prior quarter and an unfavorable impact of $8 million versus the prior year.

³	Excludes net operating income attributable to noncontrolling interests in the Australia MI business of $21 million in the first quarter of 2015 and fourth quarter of 2014 related to the Australia MI initial public offering (IPO) completed on May 21, 2014.

Global Mortgage Insurance Division

Global Mortgage Insurance Division had net operating income of $116 million, compared with $83 million in the prior quarter and $132 million a year ago.


Global Mortgage Insurance Division
Net Operating Income (Loss)
(Amounts in millions)	Q1 15			Q4 14			Q1 14
International Mortgage Insurance
Canada	$	40		$	36		$	41
Australia		30	³		33	³		62
Other Countries		(6	)		(7	)		(4	)

Total International Mortgage Insurance		64			62			99
U.S. Mortgage Insurance		52			21			33

Total Global Mortgage Insurance	$	116		$	83		$	132


Sales
(Amounts in billions)	Q1 15			Q4 14			Q1 14
International Mortgage Insurance
Flow
Canada	$	3.3		$	5.5		$	2.9
Australia		5.8			8.0			7.8
Other Countries		0.4			0.5			0.4
Bulk
Canada		5.0			2.3			2.9
Australia		—			0.1			—
Other Countries		0.2			—			—
U.S. Mortgage Insurance
Primary Flow		6.3			6.9			3.9
Primary Bulk		—			—			—

Canada Mortgage Insurance

Canada reported net operating income of $40 million versus $36 million in the prior quarter and $41 million in the prior year. The loss ratio in the quarter was 22 percent, down four points from the prior quarter from fewer new delinquencies, net of cures and up two points from the prior year from a higher average reserve per delinquency, which was partially offset by a decrease in the number of new delinquencies, net of cures. Results included lower expenses versus the prior quarter and prior year and unfavorable foreign exchange. Flow NIW was down 36 percent⁴ sequentially from a seasonally smaller originations market and up 24 percent⁴ year over year primarily from a larger originations market. In addition, the company completed several bulk transactions in the quarter of approximately $5.0 billion in total, consisting of low loan-to-value prime loans, reflecting its selective participation in this market.

Australia Mortgage Insurance

Australia reported net operating income of $30 million versus $33 million in the prior quarter and $62 million in the prior year. Results in the quarter reflected a $21 million decrease in net operating income versus the prior year as a result of the minority IPO of 33.8 percent of the Australia MI business, which was completed on May 21, 2014. The loss ratio in the quarter was 15 percent, flat sequentially and down two points from the prior year. During the quarter, the company accrued a $7 million pre-tax receivable for

⁴	Percent change excludes the impact of foreign exchange.

expected recoveries relating to paid claims reflecting its experience of successful borrower recovery activity, favorably impacting the loss ratio by nine points. New delinquencies were up 14 percent and cures were down 17 percent sequentially reflecting normal seasonal variation. Results were also impacted by unfavorable foreign exchange versus both the prior quarter and prior year. Flow NIW was down 20 percent⁴ sequentially primarily from seasonal variation and other market factors and down 17 percent⁴ year over year from a smaller mortgage insurance market.

Other Countries Mortgage Insurance

Other Countries had a net operating loss of $6 million, compared to $7 million in the prior quarter and $4 million in the prior year.

U.S. Mortgage Insurance

U.S. MI net operating income was $52 million, compared with $21 million in the prior quarter and $33 million in the prior year. The loss ratio in the current quarter was 33 percent, down 28 points sequentially reflecting seasonally lower new delinquencies and favorable net cures and aging of existing delinquencies. New flow delinquencies decreased approximately 12 percent from the prior quarter from seasonal variation and decreased approximately 22 percent from the prior year, reflecting the continued burn through of delinquencies from the 2005 to 2008 book years.

Flow NIW of $6.3 billion decreased nine percent from the prior quarter from a seasonally smaller purchase originations market and increased 62 percent versus the prior year primarily from a larger purchase originations market, higher refinance activity and an increase in estimated market share. During the quarter, the company increased its single premium lender paid new insurance written reflecting its selective participation in this market. Future volumes of this product will vary in part depending on the company’s evaluation of the risk return profile of these transactions.

U.S. Life Insurance Division

U.S. Life Insurance Division net operating income was $81 million, compared with a net operating loss of $482 million in the prior quarter and net operating income of $94 million a year ago.


U.S. Life Insurance Division
Net Operating Income (Loss)
(Amounts in millions)	Q1 15		Q4 14			Q1 14
U.S. Life Insurance
Long Term Care Insurance	$	10	$	(506	)	$	46
Life Insurance		40		1			21
Fixed Annuities		31		23			27

Total U.S. Life Insurance		81		(482	)		94

Total U.S. Life Insurance	$	81	$	(482	)	$	94


Sales
(Amounts in millions)	Q1 15		Q4 14			Q1 14
U.S. Life Insurance
Long Term Care Insurance
Individual	$	10	$	17		$	21
Group		1		6			1
Life Insurance
Term Life		9		11			13
Universal Life		4		7			6
Linked Benefits		4		5			2
Fixed Annuities		326		495			520

Long Term Care Insurance

LTC net operating income was $10 million, compared with a net operating loss of $506 million in the prior quarter and net operating income of $46 million in the prior year. Benefits and other changes in policy reserves decreased $506 million after-tax versus the prior quarter and increased $66 million after-tax versus the prior year. The current quarter included favorable mortality on existing claims versus both the prior quarter and prior year partially offset by unfavorable severity given the mix of new claims with a higher average reserve. Results in the quarter included net unfavorable items of $7 million after-tax reflecting a refinement to a reserve calculation on the acquired block of business, partially offset primarily by a correction related to reinsurance. During the quarter, the company began implementing a process to accrue for profits followed by losses on business written since late 1995, but it had no impact on the current quarter financial results. The prior quarter impact of the unlocking of assumptions associated with the active life reserves on the acquired block, as well as additional adjustments to reserves, was $494 million after-tax. The loss ratio in the current quarter was 72 percent.

Results for the quarter included lower benefits from reduced benefit options of $3 million after-tax versus the prior quarter related to the premium increases approved and implemented to date.

Individual LTC sales of $10 million were lower than the prior quarter and the prior year. Sales are expected to continue at low levels in the near term due to the 2014 introduction of a higher priced product and ratings pressure, but build over time as new products are introduced.

Life Insurance

Life insurance net operating income was $40 million, compared with $1 million in the prior quarter and $21 million in the prior year. Results in the quarter included favorable mortality versus pricing, in line with the prior quarter and better than the prior year, and favorable term life insurance reserve development from aging of the block and lower new business. During the quarter, the company completed a reinsurance transaction that reduced paid claims that were offset with lower premiums resulting in a minimal reduction in net operating income, but will reduce future excess reserve financing costs. Results in the prior quarter included an unfavorable correction to a reserve calculation on a reinsurance transaction of $32 million. Sales of $17 million decreased compared to the prior quarter and the prior year. Linked benefit product deposits were $41 million in the quarter, down from $42 million in the prior quarter and up from $25 million in the prior year.

Fixed Annuities

Fixed annuities net operating income was $31 million, compared with $23 million in the prior quarter and $27 million in the prior year. Results in the quarter reflected favorable mortality versus both the prior quarter and prior year and lower lapses versus the prior quarter. Sales in the quarter totaled $326 million, down sequentially and versus the prior year given the lower interest rate environment and ratings impacts.

Corporate and Other Division

Corporate and Other Division net operating loss was $41 million, compared with $17 million in the prior quarter and $32 million in the prior year.


Corporate and Other Division
Net Operating Income (Loss)
(Amounts in millions)	Q1 15			Q4 14			Q1 14
International Protection	$	—		$	(4	)	$	7
Runoff		11			16			12
Corporate and Other		(52	)		(29	)		(51	)

Total Corporate and Other	$	(41	)	$	(17	)	$	(32	)

International Protection net operating income was zero for the quarter, compared with a net operating loss of $4 million in the prior quarter and net operating income of $7 million in the prior year. Results in the prior quarter reflected $4 million of net unfavorable items and the prior year reflected $4 million of favorable tax adjustments.

Runoff net operating income was $11 million, compared with $16 million in the prior quarter and $12 million in the prior year. Results in the current quarter reflect less favorable taxes partially offset by favorable equity market performance versus the prior quarter primarily impacting variable annuity products.

Corporate and Other net operating loss was $52 million, compared with $29 million in the prior quarter and $51 million in the prior year. Results in the prior quarter reflected favorable year-end tax benefits.

Capital & Liquidity

Genworth maintains solid capital positions in its operating subsidiaries.


Key Capital & Liquidity Metrics
(Dollar amounts in millions)	Q1 15			Q4 14			Q1 14
Canada MI
Minimum Capital Test Ratio⁵		233	%		225	%		229	%
Australia MI
Prescribed Capital Amount Ratio⁵		163	%		159	%		147	%
U.S. MI
Consolidated Risk-To-Capital Ratio⁵		14.1:1			14.5:1			18.7:1
GMICO Risk-To-Capital Ratio⁵		13.8:1			14.3:1			18.4:1
U.S. Life Companies
Consolidated Risk-Based Capital (RBC) Ratio⁵		450	%		438	%		480	%
Unassigned Surplus⁵	$	115		$	155		$	444
Lifestyle Protection Insurance
Regulatory Ratio⁵		348	%		365	%		362	%
Holding Company⁶ Cash and Liquid Assets⁷	$	1,070		$	1,103		$	1,268

Key Points

•

Canada and Australia paid $126 million in dividends to the holding company during the quarter;

•

U.S. Life Insurance companies unassigned surplus decreased primarily from approximately $70 million related to the completion of a life reinsurance transaction that will reduce future excess reserve financing costs;

•

The holding company ended the quarter with a buffer of approximately $585 million in excess of one and a half times annual debt service and restricted cash;

•

The holding company targets maintaining cash balances of at least one and a half times its annual debt service expense plus a risk buffer of $350 million; and

•

In April, the Australia business received regulatory approval for the potential issuance of up to A$250 million of subordinated notes, but a decision to issue these notes has not yet been made and will be subject to business and market conditions.

⁵	Company estimate for the first quarter of 2015, due to timing of the filing of statutory statements.

⁶	Holding company cash and liquid assets comprise assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc.

⁷	Comprises cash and cash equivalents of $820 million, $953 million and $1,118, respectively, and U.S. government bonds of $250 million, $150 million and $150 million, respectively, as of March 31, 2015, December 31, 2014 and March 31, 2014.

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company committed to helping families become more financially secure, self-reliant and prepared for the future. To help families start “the talk” about their futures and long term care planning, Genworth recently completed a national #LetsTalk Tour to encourage conversations and information sharing. Genworth has leadership positions in mortgage insurance and long term care insurance and product offerings in life insurance and fixed annuities that assist consumers in solving their home ownership, insurance and retirement needs. 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 subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found at http://genworth.ca and http://www.genworth.com.au.

Conference Call and Financial Supplement Information

This press release and the first quarter 2015 financial supplement are now posted on the company’s website. Additional information regarding business results and strategic update will be posted on the company’s website, http://investor.genworth.com, by 7:30 a.m. on April 29, 2015. Investors are encouraged to review these materials.

Genworth will conduct a conference call on April 29, 2015 at 8:00 a.m. (ET) to discuss first quarter 2015 results and provide an update on strategic priorities. The conference call will be accessible via telephone and the Internet. The dial-in number for the conference call is 877 888.4034 or 913 489.5101 (outside the U.S.); conference ID # 9308558. 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.

Replays of the call will be available through May 13, 2015 at 888 203.1112 or 719 457.0820 (outside the U.S.); conference ID # 9308558. The webcast will also be archived on the company’s website.

Use of Non-GAAP Measures

This press release includes the non-GAAP financial measures entitled “net operating income (loss)” and “net operating income (loss) per share.” Operating earnings (loss) per share is derived from net operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of net operating income (loss). The company defines net operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. 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 impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to 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 net 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 net operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.

In the first quarter of 2015, the company modified its definition to explicitly state that restructuring costs, which were previously included in the infrequent and unusual category, are excluded from net operating income (loss). There were no restructuring costs in the periods presented.

In the fourth quarter of 2014, the company recorded goodwill impairments of $129 million, net of taxes, in the long term care insurance business and $145 million, net of taxes, in the life insurance business.

There were no infrequent or unusual items excluded from net operating income (loss) during the periods presented other than the following items. There was a $66 million net tax impact in the fourth quarter of 2014 from potential business portfolio changes. Although no decisions have been made, the company recognized a tax charge of $174 million in the fourth quarter of 2014 associated with the Australian mortgage insurance business as the company can no longer assert its intent to permanently reinvest earnings in that business. In connection with the company’s plans to sell the lifestyle protection insurance business, the company completed an internal debt restructuring recognizing tax benefits of $108 million in the fourth quarter of 2014.

While some of these items may be significant components of net income (loss) available to Genworth’s common stockholders in accordance with GAAP, the company believes that net operating income (loss) and measures that are derived from or incorporate net operating income (loss), including net operating income (loss) per common 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 net 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 net operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Net operating income (loss) and net operating income (loss) per common share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth’s common stockholders or net income (loss) available to Genworth’s common stockholders per common share on a basic and diluted basis determined in accordance with GAAP. In addition, the company’s definition of net operating income (loss) may differ from the definitions used by other companies.

The tables at the end of this press release reflect net operating income (loss) as determined in accordance with accounting guidance related to segment reporting, and a reconciliation of net operating income (loss) of the company’s segments and Corporate and Other activities to net income (loss) available to Genworth’s common stockholders for the three months ended March 31, 2015 and 2014, as well as for the three months ended December 31, 2014.

Adjustments to reconcile net income (loss) attributable to Genworth’s common stockholders and net operating income (loss) assume a 35 percent tax rate and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for deferred acquisition costs and other intangible amortization and certain benefit reserves.

This press release also includes non-GAAP financial measures entitled “net income (loss) before net income attributable to noncontrolling interests in the Australia MI business” and “net operating income (loss) before net operating income attributable to noncontrolling interests in the Australia MI business.” The company defines net income (loss) before net income attributable to noncontrolling interests in the Australia MI business and net operating income (loss) before net operating income attributable to noncontrolling interests in the Australia MI business as net income (loss) or net operating income (loss), as applicable, adjusted for net income attributable to noncontrolling interests in the Australia MI business but before noncontrolling interests in the Canada MI business. These measures are presented as they are comparable to net income (loss) and net operating income (loss) for the first quarter of 2014. However, net income (loss) before net income attributable to noncontrolling interests in the Australia MI business and net operating income (loss) before net operating income attributable to noncontrolling interests in the Australia MI business are not substitutes for net income (loss) and net operating income (loss) determined in accordance with GAAP. A reconciliation of net income (loss) before net income attributable to noncontrolling interests in the Australia MI business and net operating income (loss) before net operating income attributable to noncontrolling interests in the Australia MI business to net income (loss) and net operating income (loss) is included in a table at the end of this press release.

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 those items that are not recurring in nature. 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 GAAP. In addition, the company’s definition of core yield may differ from the definitions used by other companies. A reconciliation of core yield to reported GAAP yield is included in a table at the end of this press release.

Results of Operations by Segment

In the first quarter of 2015, the company revised how it allocates the consolidated provision for income taxes to its operating segments to simplify the process and reflect how the chief operating decision maker is evaluating segment performance. The revised methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. Previously, the company calculated a unique income tax provision for each segment based on quarterly changes to tax attributes and implications of transactions specific to each product within the segment.

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. Prior year amounts have not been re-presented to reflect this revised presentation and are, therefore, not comparable to the current year provision for income taxes by segment. However, the company does not believe that the previous methodology would have resulted in a materially different segment-level provision for income taxes.

Definition of Selected Operating Performance Measures

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 and renewal business generated in a period. Sales refer to: (1) new insurance written for mortgage insurance; (2) annualized first-year premiums for long term care and term life insurance products; (3) annualized first-year deposits plus five percent of excess deposits for universal and term universal life insurance products; (4) 10 percent of premium deposits for linked-benefits products; (5) new and additional premiums/deposits for fixed annuities; and (6) net premiums written for the lifestyle protection insurance business. Sales do not include renewal premiums on policies or contracts written during prior periods. The company considers new insurance written, annualized first-year premiums/deposits, premium equivalents, new premiums/deposits and net premiums written to be a measure of the company’s operating performance because they represent a measure of new sales of insurance policies or contracts 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 international mortgage and U.S. mortgage insurance businesses is a measure of the aggregate face value of outstanding insurance policies as of the respective reporting date. For risk in force in the international mortgage insurance business, the company 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 of 35 percent that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s businesses in Canada and Australia. Risk in force for the U.S. mortgage insurance business is the obligation that is limited under contractual terms to the amounts less than 100 percent of the mortgage loan value. The company considers insurance in force and risk in force to be measures of the company’s operating performance because they represent measures of the size of the business at a specific date which will generate revenues and profits in a future period, rather than measures of the company’s revenues or profitability during that period.

Management also regularly monitors and reports a loss ratio for the company’s businesses. For the mortgage and lifestyle protection insurance businesses, the loss ratio is the ratio of incurred losses and loss adjustment expenses 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.

An assumed tax rate of 35 percent is utilized in certain adjustments to net operating income (loss) and in the explanation of specific variances of operating performance and investment results.

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 future business and financial performance. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks, including, but not limited to, the following:

•

Risks relating to all of the company’s businesses, including: (i) inability to successfully develop and execute strategic plans to effectively address the company’s current business challenges (including with respect to its long term care insurance business, ratings and capital), including as a result of failure to attract buyers for the company’s lifestyle protection insurance business and any other businesses or other assets the company may seek to sell, or securities it may seek to issue, in each case, in a timely manner on anticipated terms; inability to generate required capital; failure to obtain any required regulatory, stockholder and/or noteholder approvals or consents, 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; (ii) inability to increase the capital needed in the company’s businesses in a timely manner and on anticipated terms, including through improved business performance, reinsurance or similar transactions, asset sales, securities offerings or otherwise, in each case as and when required; (iii) 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 as a result of the company’s actual experience differing significantly from its assumptions); (iv) ineffective or inadequate risk management in identifying, controlling or mitigating risks; weaknesses in, or ineffective, internal controls; (v) recent or future adverse rating agency actions, including with respect to rating downgrades or potential downgrades, being placed on negative outlook 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; (vi) inability to retain, attract and motivate qualified employees and independent sales representatives, particularly in the light of the company’s recent business challenges; (vii) adverse change in regulatory requirements, including risk-based capital; (viii) dependence on dividends and other distributions from the company’s subsidiaries (particularly the company’s international 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 the subsidiaries and insurance, regulatory or corporate law restrictions (including the unwillingness or inability of the subsidiary that indirectly owns most of the company’s interests in the Australian and Canadian mortgage insurance businesses to pay the dividends that it receives from those businesses as a result of the impact on its financial condition of its guarantee of certain long term care insurance related reinsurance arrangements); (ix) inability to borrow under the company’s credit facility; (x) downturns and volatility in global economies and equity and credit markets; (xi) interest rates and changes in rates; (xii) availability, affordability and adequacy of reinsurance to protect the company against losses; (xiii) defaults by counterparties to reinsurance arrangements or derivative instruments; (xiv) changes in valuation of fixed maturity, equity and trading securities; (xv) defaults or other events impacting the value of the company’s fixed maturity securities portfolio; (xvi) defaults on the company’s commercial mortgage loans or the mortgage loans underlying its investments in commercial mortgage-backed securities and volatility in performance; (xvii) competition; (xviii) reliance on, and loss of, key distribution relationships; (xix) extensive regulation of the company’s businesses and changes in applicable laws and regulations; (xx) litigation and regulatory investigations or other actions (including the two shareholder putative class action lawsuits alleging securities law violations filed against the company in 2014); (xxi) the material weakness in the company’s internal control over financial reporting; (xxii) 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, the company’s confidential information; (xxiii) occurrence of natural or man-made disasters or a pandemic; (xxiv) impact of additional regulations pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act; (xxv) changes in accounting and reporting standards; (xxvi) impairments of or valuation allowances against the company’s deferred tax assets; (xxvii) accelerated amortization of deferred acquisition costs and present value of future profits (including as a result of any changes the company may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews); (xxviii) political and economic instability or changes in government policies; and (xxix) fluctuations in foreign currency exchange rates and international securities markets;

•

Risks relating primarily to the company’s mortgage insurance businesses, including: (i) deterioration in economic conditions or a decline in home prices that adversely affect the company’s loss experience in mortgage insurance; (ii) premiums for the significant portion of the company’s international mortgage insurance risk in-force with high loan-to-value ratios may not be sufficient to compensate the company for the greater risks associated with those policies; (iii) competition in the company’s international and U.S. mortgage insurance businesses, including from government and government-owned and government-sponsored enterprises offering mortgage insurance; (iv) changes in regulations adversely affecting the company’s international operations; (v) inability to meet the private mortgage insurance eligibility requirements (PMIERs) on the contemplated timetable with the contemplated funding; (vi) inability of U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements and hazardous financial condition standards; (vii) the influence of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and a small number of large mortgage lenders on the U.S. mortgage insurance market and adverse changes to the role or structure of Fannie Mae and Freddie Mac; (viii) increases in U.S. mortgage insurance default rates; (ix) inability to realize anticipated benefits of the company’s rescissions, curtailments, loan modifications or other similar programs in its U.S. mortgage insurance business; (x) problems associated with foreclosure process defects in the United States that may defer claim payments; (xi) competition with government-sponsored enterprises may put the company at a disadvantage on pricing and other terms and conditions; (xii) adverse changes in regulations affecting the company’s U.S. mortgage insurance business; (xiii) decreases in the volume of high loan-to-value mortgage originations or increases in mortgage insurance cancellations in the United States; (xiv) increases in the use of alternatives to private mortgage insurance in the United States and reductions in the level of coverage selected; and (xv) potential liabilities in connection with the company’s U.S. contract underwriting services;

•

Risks relating primarily to the company’s long term care insurance, life insurance and annuities businesses, including: (i) the company’s inability to increase sufficiently, and in a timely manner, premiums on in-force long term care insurance policies and/or reduce in-force benefits, and charge higher premiums on new policies, in each case, as currently anticipated (including the future increases assumed in connection with the completion of the company’s margin reviews in the fourth quarter of 2014) and as may be required from time to time in the future (including as a result of its failure to obtain any necessary regulatory approvals or unwillingness or inability of policyholders to pay increased premiums); the company’s inability to reflect future premium increases and other management actions in its margin calculation as anticipated; (ii) failure to sufficiently increase demand for the company’s long term care insurance, life insurance and fixed annuity products; (iii) adverse impact on the company’s financial results as a result of projected profits followed by projected losses (as is currently the case with the company’s long term care insurance business); (iv) deviations from the persistency assumptions used to price and establish reserves for the company’s insurance policies and annuity contracts; (v) medical advances, such as genetic research and diagnostic imaging, and related legislation that impact policyholder behavior in ways adverse to the company; and (vi) inability to continue to implement actions to mitigate the impact of statutory reserve requirements;

•

Other risks, including: (i) the possibility that in certain circumstances the company will be obligated to make payments to General Electric Company (GE) under the tax matters agreement with GE even if its corresponding tax savings are never realized and payments could be accelerated in the event of certain changes in control; and (ii) provisions of the company’s certificate of incorporation and bylaws and the tax matters agreement with GE may discourage takeover attempts and business combinations that stockholders might consider in their best interests; and

•

Risks relating to the company’s common stock, including: (i) the continued suspension of payment of dividends; and (ii) stock price fluctuations.

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

# # #


Contact Information:

Investors:		Amy Corbin, 804 662.2685

		[email protected]

Media:		Al Orendorff, 804 662.2534

		[email protected]

Condensed Consolidated Statements of Income

(Amounts in millions, except per share amounts)


	Three months ended March 31,
	2015			2014
Revenues:
Premiums	$	1,323		$	1,307
Net investment income		803			805
Net investment gains (losses)		(16	)		(17	)
Insurance and investment product fees and other		225			227

Total revenues		2,335			2,322

Benefits and expenses:
Benefits and other changes in policy reserves		1,243			1,194
Interest credited		180			183
Acquisition and operating expenses, net of deferrals		380			378
Amortization of deferred acquisition costs and intangibles		121			134
Interest expense		116			127

Total benefits and expenses		2,040			2,016

Income before income taxes		295			306
Provision for income taxes		91			87

Net income		204			219
Less: net income attributable to noncontrolling interests		50			35

Net income available to Genworth Financial, Inc.’s common stockholders	$	154		$	184


Net income available to Genworth Financial, Inc.’s common stockholders per common share:
Basic	$	0.31		$	0.37

Diluted	$	0.31		$	0.37

Weighted-average shares outstanding:
Basic		497.0			495.8

Diluted		498.9			502.7

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

(Amounts in millions, except per share amounts)


	Three months ended March 31,						Three months ended December 31,
	2015			2014			2014
Net operating income (loss):
Global Mortgage Insurance Division
International Mortgage Insurance segment
Canada	$	40		$	41		$	36
Australia		30	³		62			33	³
Other Countries		(6	)		(4	)		(7	)

Total International Mortgage Insurance segment		64			99			62
U.S. Mortgage Insurance segment		52			33			21

Total Global Mortgage Insurance Division		116			132			83

U.S. Life Insurance Division
U.S. Life Insurance segment
Long Term Care Insurance		10			46			(506	)
Life Insurance		40			21			1
Fixed Annuities		31			27			23

Total U.S. Life Insurance segment		81			94			(482	)

Total U.S. Life Insurance Division		81			94			(482	)

Corporate and Other Division
International Protection segment		—			7			(4	)
Runoff segment		11			12			16
Corporate and Other		(52	)		(51	)		(29	)

Total Corporate and Other Division		(41	)		(32	)		(17	)

Net operating income (loss)		156			194			(416	)
Adjustments to net operating income (loss):
Net investment gains (losses), net (see below for reconciliation)		(2	)		(10	)		(4	)
Goodwill impairment, net		—			—			(274	)
Tax impact from potential business portfolio changes		—			—			(66	)

Net income (loss) available to Genworth Financial, Inc.’s common stockholders		154			184			(760	)
Add: net income attributable to noncontrolling interests		50			35			52

Net income (loss)	$	204		$	219		$	(708	)


Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share:
Basic	$	0.31		$	0.37		$	(1.53	)

Diluted	$	0.31		$	0.37		$	(1.53	)

Net operating income (loss) per common share:
Basic	$	0.31		$	0.39		$	(0.84	)

Diluted	$	0.31		$	0.39		$	(0.84	)

Weighted-average shares outstanding:
Basic		497.0			495.8			496.7

Diluted⁸		498.9			502.7			496.7


Reconciliation of net investment gains (losses):
Net investment gains (losses), gross	$	(16	)	$	(17	)	$	(10	)
Adjustments for:
Deferred acquisition costs and other intangible amortization and certain benefit reserves		6			1			1
Net investment gains (losses) attributable to noncontrolling interests		7			1			1
Taxes		1			5			4

Net investment gains (losses), net of taxes and other adjustments	$	(2	)	$	(10	)	$	(4	)

⁸

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 company’s loss for the three months ended December 31, 2014, the company was required to use basic weighted average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights would have been antidilutive to the calculation. If the company had not incurred a loss during the three months ended December 31, 2014, dilutive potential weighted average common shares outstanding would have been 499.9 million.

Condensed Consolidated Balance Sheets

(Amounts in millions)


	March 31, 2015			December 31, 2014
Assets
Cash, cash equivalents and invested assets	$	80,118		$	78,841
Deferred acquisition costs		4,918			5,042
Intangible assets		227			272
Goodwill		15			16
Reinsurance recoverable		17,339			17,346
Other assets		650			633
Separate account assets		9,064			9,208

Total assets	$	112,331		$	111,358

Liabilities and stockholders’ equity
Liabilities:
Future policy benefits	$	36,488		$	35,915
Policyholder account balances		26,146			26,043
Liability for policy and contract claims		8,030			8,043
Unearned premiums		3,731			3,986
Deferred tax and other liabilities		5,002			4,512
Borrowings related to securitization entities		205			219
Non-recourse funding obligations		1,983			1,996
Long-term borrowings		4,601			4,639
Separate account liabilities		9,064			9,208

Total liabilities		95,250			94,561

Stockholders’ equity:
Common stock		1			1
Additional paid-in capital		11,998			11,997

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		2,724			2,431
Net unrealized gains (losses) on other-than-temporarily impaired securities		24			22

Net unrealized investment gains (losses)		2,748			2,453

Derivatives qualifying as hedges		2,247			2,070
Foreign currency translation and other adjustments		(303	)		(77	)

Total accumulated other comprehensive income (loss)		4,692			4,446
Retained earnings		1,333			1,179
Treasury stock, at cost		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		15,324			14,923
Noncontrolling interests		1,757			1,874

Total stockholders’ equity		17,081			16,797

Total liabilities and stockholders’ equity	$	112,331		$	111,358

Impact of Foreign Exchange on Operating Results⁹

Three months ended March 31, 2015


	Percentages Including Foreign Exchange			Percentages Excluding Foreign Exchange¹⁰

Canada Mortgage Insurance (MI):
Flow new insurance written		14	%		24	%
Flow new insurance written (1Q15 vs. 4Q14)		(40	)%		(36	)%

Australia MI:
Flow new insurance written		(26	)%		(17	)%
Flow new insurance written (1Q15 vs. 4Q14)		(28	)%		(20	)%

⁹	All percentages are comparing the first quarter of 2015 to the first quarter of 2014 unless otherwise stated.

¹⁰	The impact of foreign exchange was calculated using the comparable prior period exchange rates.

Reconciliation of Net Income (Loss) Before Net Income Attributable to Noncontrolling

Interests In The Australia MI Business to Net Income (Loss) Available to Genworth’s Common

Stockholders and Net Operating Income (Loss) Before Net Operating Income Attributable

to Noncontrolling Interests In The Australia MI Business to Net Operating Income (Loss)

(Amounts in millions)


	Three months ended March 31,				Three months ended December 31,
	2015		2014		2014
Net income (loss) before net income attributable to noncontrolling interests	$	204	$	219	$	(708	)
Adjustments for:
Net income attributable to noncontrolling interests in the Australia MI business		21		N/A		22
Net income attributable to noncontrolling interests in the Canada MI business		29		35		30

Net income (loss) available to Genworth’s common stockholders	$	154	$	184	$	(760	)


Net operating income (loss) before net operating income attributable to noncontrolling interests	$	211	$	230	$	(363	)
Adjustments for:
Net operating income attributable to noncontrolling interests in the Australia MI business		21		N/A		21
Net operating income attributable to noncontrolling interests in the Canada MI business		34		36		32

Net operating income (loss)	$	156	$	194	$	(416	)

Reconciliation of Core Yield to Reported Yield


(Assets - amounts in billions)	For the three months ended March 31, 2015
Reported Total Invested Assets and Cash	$	79.4
Subtract:
Securities lending		0.3
Unrealized gains (losses)		7.9
Derivative counterparty collateral		—

Adjusted end of period invested assets	$	71.2


Average Invested Assets Used in Reported Yield Calculation	$	71.2
Subtract:
Restricted commercial mortgage loans and other invested assets related to securitization entities¹¹		0.2

Average Invested Assets Used in Core Yield Calculation	$	71.0


(Income - amounts in millions)
Reported Net Investment Income	$	803
Subtract:
Bond calls and commercial mortgage loan prepayments		14
Reinsurance¹²		15
Other non-core items¹³		12
Restricted commercial mortgage loans and other invested assets related to securitization entities¹¹		3

Core Net Investment Income	$	759


Reported Yield		4.51	%

Core Yield		4.28	%

¹¹	Represents the incremental assets and investment income related to restricted commercial mortgage loans and other invested assets.

¹²	Represents imputed investment income related to reinsurance agreements in the lifestyle protection insurance business.

¹³	Includes cost basis adjustments on structured securities, preferred stock income and various other immaterial items.

Exhibit 99.2

First Quarter Financial Supplement

March 31, 2015

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015


Table of Contents	Page
Investor Letter		3
Use of Non-GAAP Measures		4
Results of Operations and Selected Operating Performance Measures		5
Financial Highlights		6

*Consolidated Quarterly Results*
Consolidated Net Income (Loss) by Quarter		8
Net Operating Income (Loss) by Segment by Quarter		9
Consolidated Balance Sheets		10-11
Consolidated Balance Sheets by Segment		12-13
Deferred Acquisition Costs (DAC) Rollforward		14

*Quarterly Results by Division*
Net Operating Income and Sales—Global Mortgage Insurance Division		16-37
Net Operating Income (Loss) and Sales—U.S. Life Insurance Division		39-44
Net Operating Loss and Other Metrics—Corporate and Other Division		46-55

*Additional Financial Data*
Investments Summary		57
Fixed Maturity Securities Summary		58
General Account GAAP Net Investment Income Yields		59
Net Investment Gains (Losses), Net—Detail		60

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		62
Reconciliation of Core Yield		63

*Corporate Information*
Industry Ratings		65

Note:

Unless otherwise noted, references in this financial supplement to net income (loss), net income (loss) per share, book value and book value per common share should be read as net income (loss) available to Genworth Financial, Inc.’s common stockholders, net 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.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Dear Investor,

In the first quarter of 2015, the company revised how it allocates income taxes to its operating segments. The revised methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between consolidated income taxes and the sum of each segment is reflected in Corporate and Other activities. Previously, the company calculated income taxes for each segment based on quarterly changes to tax attributes and product specific transactions within the segment. See page 5 for additional information related to this revised presentation.

Thank you for your continued interest in Genworth Financial.

Regards,

Amy Corbin

Investor Relations

[email protected]

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Use of Non-GAAP Measures

This financial supplement includes the non-GAAP⁽¹⁾ financial measure entitled “net operating income (loss).” The chief operating decision maker evaluates segment performance and allocates resources on the basis of net operating income (loss). The company defines net operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. 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 impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to 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 net 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 net operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.

In the fourth quarter of 2014, the company recorded goodwill impairments of $129 million, net of taxes, in the long-term care insurance business and $145 million, net of taxes, in the life insurance business. In the third quarter of 2014, the company recorded goodwill impairments of $167 million, net of taxes, in the long-term care insurance business and $350 million, net of taxes, in the life insurance business.

The following transaction was excluded from net operating income (loss) for the periods presented as it related to the loss on the early extinguishment of debt. In the second quarter of 2014, the company paid an early redemption payment of approximately $2 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth MI Canada Inc.’s notes that were scheduled to mature in 2015.

While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with GAAP, the company believes that net operating income (loss) and measures that are derived from or incorporate net operating income (loss), including net operating income (loss) per common 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 net 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 net operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Net operating income (loss) and net operating income (loss) per common 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 common share on a basic and diluted basis determined in accordance with GAAP. In addition, the company’s definition of net operating income (loss) may differ from the definitions used by other companies.

The table on page 9 of this financial supplement reflects net operating income (loss) as determined in accordance with accounting guidance related to segment reporting, and a reconciliation of net operating income (loss) of the company’s segments and Corporate and Other activities to net income (loss) available to Genworth Financial, Inc.’s common stockholders for the periods presented. The 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 62 and 63 of this financial supplement.

Adjustments to reconcile net income (loss) attributable to Genworth Financial, Inc.’s common stockholders and net operating income (loss) assume a 35% tax rate and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves (see page 60).

⁽¹⁾	U.S. Generally Accepted Accounting Principles

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

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 net operating income (loss). The table on page 9 of this financial supplement reflects net operating income (loss) as determined in accordance with accounting guidance related to segment reporting, and a reconciliation of net operating income (loss) of the company’s segments and Corporate and Other activities to net income (loss) available to Genworth Financial, Inc.’s common stockholders for the periods presented.

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 and renewal business generated in a period. Sales refer to: (1) new insurance written for mortgage insurance; (2) annualized first-year premiums for long-term care and term life insurance products; (3) annualized first-year deposits plus 5% of excess deposits for universal and term universal life insurance products; (4) 10% of premium deposits for linked-benefits products; (5) new and additional premiums/deposits for fixed annuities; and (6) net premiums written for the lifestyle protection insurance business. Sales do not include renewal premiums on policies or contracts written during prior periods. The company considers new insurance written, annualized first-year premiums/deposits, premium equivalents, new premiums/deposits, and net premiums written to be a measure of the company’s operating performance because they represent a measure of new sales of insurance policies or contracts 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 international mortgage and U.S. mortgage insurance businesses is a measure of the aggregate face value of outstanding insurance policies as of the respective reporting date. For risk in-force in the international mortgage insurance business, the company 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 of 35% that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s businesses in Canada and Australia. Risk in-force for the U.S. mortgage insurance business is the obligation that is limited under contractual terms to the amounts less than 100% of the mortgage loan value. The company considers insurance in-force and risk in-force to be measures of the company’s operating performance because they represent measures of the size of the business at a specific date which will generate revenues and profits in a future period, rather than measures of the company’s revenues or profitability during that period.

Management also regularly monitors and reports a loss ratio for the company’s businesses. For the mortgage and lifestyle protection insurance businesses, the loss ratio is the ratio of incurred losses and loss adjustment expenses 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.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	10,632	$	10,477	$	11,231	$	12,070	$	12,032
Total accumulated other comprehensive income		4,692		4,446		3,934		4,161		3,483

Total Genworth Financial, Inc.’s stockholders’ equity	$	15,324	$	14,923	$	15,165	$	16,231	$	15,515

Book value per common share	$	30.81	$	30.04	$	30.54	$	32.68	$	31.27
Book value per common share, excluding accumulated other comprehensive income	$	21.38	$	21.09	$	22.62	$	24.31	$	24.25
Common shares outstanding as of the balance sheet date		497.4		496.7		496.6		496.6		496.2

	Twelve months ended
Twelve Month Rolling Average ROE	March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014
GAAP Basis ROE		-11.3%		-10.8%		-2.3%		5.7%		5.5%
Operating ROE⁽¹⁾		-3.7%		-3.3%		1.9%		5.8%		5.6%

	Three months ended
Quarterly Average ROE	March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014
GAAP Basis ROE		5.8%		-28.0%		-29.0%		5.8%		6.2%
Operating ROE⁽¹⁾		5.9%		-15.3%		-10.9%		5.2%		6.5%


Basic and Diluted Shares	Three months ended March 31, 2015
Weighted-average common shares used in basic earnings per common share calculations		497.0
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		1.9

Weighted-average common shares used in diluted earnings per common share calculations		498.9

⁽¹⁾	See page 62 herein for a reconciliation of GAAP Basis ROE to Operating ROE.

Consolidated Quarterly Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


	2015			2014
	1Q			4Q			3Q			2Q		1Q			Total
REVENUES:
Premiums	$	1,323		$	1,386		$	1,395		$	1,343	$	1,307		$	5,431
Net investment income		803			819			805			813		805			3,242
Net investment gains (losses)		(16	)		(10	)		(27	)		34		(17	)		(20	)
Insurance and investment product fees and other		225			229			231			225		227			912

Total revenues		2,335			2,424			2,404			2,415		2,322			9,565

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,243			2,184			1,986			1,256		1,194			6,620
Interest credited		180			185			185			184		183			737
Acquisition and operating expenses, net of deferrals		380			405			398			404		378			1,585
Amortization of deferred acquisition costs and intangibles		121			156			143			138		134			571
Goodwill impairment		—			299			550			—		—			849
Interest expense		116			118			114			120		127			479

Total benefits and expenses		2,040			3,347			3,376			2,102		2,016			10,841

INCOME (LOSS) BEFORE INCOME TAXES		295			(923	)		(972	)		313		306			(1,276	)
Provision (benefit) for income taxes		91			(215	)		(185	)		85		87			(228	)

NET INCOME (LOSS)		204			(708	)		(787	)		228		219			(1,048	)
Less: net income attributable to noncontrolling interests		50			52			57			52		35			196

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	154		$	(760	)	$	(844	)	$	176	$	184		$	(1,244	)


Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.31		$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)
Diluted	$	0.31		$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)
Weighted-average common shares outstanding
Basic		497.0			496.7			496.6			496.6		495.8			496.4
Diluted⁽¹⁾		498.9			496.7			496.6			503.6		502.7			496.4

⁽¹⁾

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations and net loss for the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, 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 September 30, 2014 and the three and twelve months ended December 31, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million, 3.2 million and 5.6 million, respectively, would have been antidilutive to the calculation. If the company had not incurred a net loss for the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, dilutive potential weighted-average common shares outstanding would have been 502.0 million, 499.9 million and 502.0 million, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income (Loss) by Segment by Quarter

(amounts in millions, except per share amounts)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
Global Mortgage Insurance Division
International Mortgage Insurance segment:
Canada	$	40		$	36		$	46		$	47		$	41		$	170
Australia⁽¹⁾		30			33			48			57			62			200
Other Countries		(6	)		(7	)		(7	)		(7	)		(4	)		(25	)

Total International Mortgage Insurance segment		64			62			87			97			99			345
U.S. Mortgage Insurance segment		52			21			(2	)		39			33			91

Total Global Mortgage Insurance Division		116			83			85			136			132			436

U.S. Life Insurance Division
U.S. Life Insurance segment:
Long-Term Care Insurance		10			(506	)		(361	)		6			46			(815	)
Life Insurance		40			1			13			39			21			74
Fixed Annuities		31			23			26			24			27			100

Total U.S. Life Insurance segment		81			(482	)		(322	)		69			94			(641	)

Total U.S. Life Insurance Division		81			(482	)		(322	)		69			94			(641	)

Corporate and Other Division
International Protection segment		—			(4	)		3			2			7			8
Runoff segment		11			16			5			15			12			48
Corporate and Other		(52	)		(29	)		(88	)		(64	)		(51	)		(232	)

Total Corporate and Other Division		(41	)		(17	)		(80	)		(47	)		(32	)		(176	)

NET OPERATING INCOME (LOSS)		156			(416	)		(317	)		158			194			(381	)
ADJUSTMENTS TO NET OPERATING INCOME (LOSS):
Net investment gains (losses), net		(2	)		(4	)		(10	)		20			(10	)		(4	)
Goodwill impairment, net		—			(274	)		(517	)		—			—			(791	)
Gains (losses) on early extinguishment of debt, net		—			—			—			(2	)		—			(2	)
Tax impact from potential business portfolio changes		—			(66	)		—			—			—			(66	)

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		154			(760	)		(844	)		176			184			(1,244	)
Add: net income attributable to noncontrolling interests		50			52			57			52			35			196

NET INCOME (LOSS)	$	204		$	(708	)	$	(787	)	$	228		$	219		$	(1,048	)


Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.31		$	(1.53	)	$	(1.70	)	$	0.35		$	0.37		$	(2.51	)
Diluted	$	0.31		$	(1.53	)	$	(1.70	)	$	0.35		$	0.37		$	(2.51	)
Net operating income (loss) per common share
Basic	$	0.31		$	(0.84	)	$	(0.64	)	$	0.32		$	0.39		$	(0.77	)
Diluted	$	0.31		$	(0.84	)	$	(0.64	)	$	0.31		$	0.39		$	(0.77	)
Weighted-average common shares outstanding
Basic		497.0			496.7			496.6			496.6			495.8			496.4
Diluted⁽²⁾		498.9			496.7			496.6			503.6			502.7			496.4

⁽¹⁾

Adjusted for 33.8% owned by noncontrolling interests after the initial public offering of the Australian mortgage insurance business on May 21, 2014. The following table shows Australia’s net operating income assuming 100% ownership and then adjusts for the portion related to noncontrolling interests.


	Three months ended March 31,
	2015		2014
Australia’s Net Operating Income	$	51	$	62
Less: Net Operating Income Attributable to Noncontrolling Interests		21		—

Australia’s Net Operating Income Available to Genworth Financial, Inc.’s Common Stockholders	$	30	$	62

⁽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 net loss and net operating loss for the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, 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 September 30, 2014 and the three and twelve months ended December 31, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million, 3.2 million and 5.6 million, respectively, would have been antidilutive to the calculation. If the company had not incurred a net loss and net operating loss for the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, dilutive potential weighted-average common shares outstanding would have been 502.0 million, 499.9 million and 502.0 million, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	62,942	$	62,447	$	62,317	$	62,360	$	60,244
Equity securities available-for-sale, at fair value		306		282		313		320		349
Commercial mortgage loans		6,149		6,100		6,077		5,986		5,894
Restricted commercial mortgage loans related to securitization entities		188		201		209		217		227
Policy loans		1,506		1,501		1,512		1,514		1,438
Other invested assets		2,723		2,296		2,281		1,963		1,875
Restricted other invested assets related to securitization entities		411		411		404		404		398

Total investments		74,225		73,238		73,113		72,764		70,425
Cash and cash equivalents		5,158		4,918		3,477		4,138		4,360
Accrued investment income		735		685		719		642		752
Deferred acquisition costs		4,918		5,042		5,085		5,085		5,177
Intangible assets		227		272		300		266		327
Goodwill		15		16		316		867		866
Reinsurance recoverable		17,339		17,346		17,374		17,276		17,234
Other assets		650		633		710		695		691
Separate account assets		9,064		9,208		9,420		9,911		9,933

Total assets	$	112,331	$	111,358	$	110,514	$	111,644	$	109,765

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	36,488		$	35,915		$	34,697		$	34,497		$	34,076
Policyholder account balances		26,146			26,043			25,827			25,834			25,881
Liability for policy and contract claims		8,030			8,043			7,987			7,223			7,156
Unearned premiums		3,731			3,986			4,085			4,191			4,075
Other liabilities		3,899			3,604			3,605			3,702			3,777
Borrowings related to securitization entities		205			219			225			233			239
Non-recourse funding obligations		1,983			1,996			2,010			2,024			2,030
Long-term borrowings		4,601			4,639			4,662			4,691			5,150
Deferred tax liability		1,103			908			875			1,074			714
Separate account liabilities		9,064			9,208			9,420			9,911			9,933

Total liabilities		95,250			94,561			93,393			93,380			93,031

Stockholders’ equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,998			11,997			11,991			11,986			12,124

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		2,724			2,431			2,047			2,109			1,606
Net unrealized gains (losses) on other-than-temporarily impaired securities		24			22			20			19			18

Net unrealized investment gains (losses)		2,748			2,453			2,067			2,128			1,624

Derivatives qualifying as hedges		2,247			2,070			1,753			1,652			1,538
Foreign currency translation and other adjustments		(303	)		(77	)		114			381			321

Total accumulated other comprehensive income		4,692			4,446			3,934			4,161			3,483
Retained earnings		1,333			1,179			1,939			2,783			2,607
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		15,324			14,923			15,165			16,231			15,515
Noncontrolling interests		1,757			1,874			1,956			2,033			1,219

Total stockholders’ equity		17,081			16,797			17,121			18,264			16,734

Total liabilities and stockholders’ equity	$	112,331		$	111,358		$	110,514		$	111,644		$	109,765

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Consolidated Balance Sheet by Segment

(amounts in millions)


	March 31, 2015
	International Mortgage Insurance		U.S. Mortgage Insurance			U.S. Life Insurance		International Protection			Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	7,918	$	2,292		$	62,974	$	1,288		$	2,681		$	2,965		$	80,118
Deferred acquisition costs and intangible assets		167		23			4,462		193			304			11			5,160
Reinsurance recoverable		20		15			16,427		34			843			—			17,339
Deferred tax and other assets		93		37			346		142			(8	)		40			650
Separate account assets		—		—			—		—			9,064			—			9,064

Total assets	$	8,198	$	2,367		$	84,209	$	1,657		$	12,884		$	3,016		$	112,331

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	—	$	—		$	36,484	$	—		$	4		$	—		$	36,488
Policyholder account balances		—		—			22,941		10			3,195			—			26,146
Liability for policy and contract claims		296		1,087			6,531		101			15			—			8,030
Unearned premiums		2,502		198			614		410			7			—			3,731
Non-recourse funding obligations		—		—			2,013		—			—			(30	)		1,983
Deferred tax and other liabilities		315		(680	)		4,329		378			(209	)		869			5,002
Borrowings and capital securities		450		—			—		—			12			4,344			4,806
Separate account liabilities		—		—			—		—			9,064			—			9,064

Total liabilities		3,563		605			72,912		899			12,088			5,183			95,250

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		2,854		1,737			6,567		800			811			(2,137	)		10,632
Allocated accumulated other comprehensive income (loss)		24		25			4,730		(42	)		(15	)		(30	)		4,692

Total Genworth Financial, Inc.’s stockholders’ equity		2,878		1,762			11,297		758			796			(2,167	)		15,324
Noncontrolling interests		1,757		—			—		—			—			—			1,757

Total stockholders’ equity		4,635		1,762			11,297		758			796			(2,167	)		17,081

Total liabilities and stockholders’ equity	$	8,198	$	2,367		$	84,209	$	1,657		$	12,884		$	3,016		$	112,331

⁽¹⁾	Includes inter-segment eliminations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Consolidated Balance Sheet by Segment

(amounts in millions)


	December 31, 2014
	International Mortgage Insurance		U.S. Mortgage Insurance			U.S. Life Insurance		International Protection		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	8,540	$	2,240		$	61,555	$	1,455	$	2,602		$	2,449		$	78,841
Deferred acquisition costs and intangible assets		179		24			4,589		215		311			12			5,330
Reinsurance recoverable		23		27			16,408		32		856			—			17,346
Deferred tax and other assets		73		33			354		131		(6	)		48			633
Separate account assets		—		—			—		—		9,208			—			9,208

Total assets	$	8,815	$	2,324		$	82,906	$	1,833	$	12,971		$	2,509		$	111,358

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	—	$	—		$	35,911	$	—	$	4		$	—		$	35,915
Policyholder account balances		—		—			22,874		11		3,158			—			26,043
Liability for policy and contract claims		308		1,180			6,434		106		15			—			8,043
Unearned premiums		2,723		178			639		439		7			—			3,986
Non-recourse funding obligations		—		—			2,026		—		—			(30	)		1,996
Deferred tax and other liabilities		375		(719	)		4,047		460		(208	)		557			4,512
Borrowings and capital securities		488		—			—		—		13			4,357			4,858
Separate account liabilities		—		—			—		—		9,208			—			9,208

Total liabilities		3,894		639			71,931		1,016		12,197			4,884			94,561

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		2,888		1,666			6,668		815		793			(2,353	)		10,477
Allocated accumulated other comprehensive income (loss)		159		19			4,307		2		(19	)		(22	)		4,446

Total Genworth Financial, Inc.’s stockholders’ equity		3,047		1,685			10,975		817		774			(2,375	)		14,923
Noncontrolling interests		1,874		—			—		—		—			—			1,874

Total stockholders’ equity		4,921		1,685			10,975		817		774			(2,375	)		16,797

Total liabilities and stockholders’ equity	$	8,815	$	2,324		$	82,906	$	1,833	$	12,971		$	2,509		$	111,358

⁽¹⁾	Includes inter-segment eliminations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Deferred Acquisition Costs Rollforward

(amounts in millions)


	International Mortgage Insurance			U.S. Mortgage Insurance			U.S. Life Insurance⁽¹⁾			International Protection			Runoff⁽²⁾			Corporate and Other		Total
Unamortized balance as of December 31, 2014	$	150		$	16		$	4,732		$	193		$	299		$	—	$	5,390
Costs deferred		16			2			68			24			—			—		110
Amortization, net of interest accretion		(13	)		(1	)		(62	)		(25	)		(4	)		—		(105	)
Impact of foreign currency translation		(12	)		—			—			(19	)		—			—		(31	)

Unamortized balance as of March 31, 2015		141			17			4,738			173			295			—		5,364
Effect of accumulated net unrealized investment (gains) losses		—			—			(438	)		—			(8	)		—		(446	)

Balance as of March 31, 2015	$	141		$	17		$	4,300		$	173		$	287		$	—	$	4,918

⁽¹⁾	Amortization, net of interest accretion, included $2 million of amortization related to net investment gains for the policyholder account balances.

⁽²⁾	Amortization, net of interest accretion, included $5 million of amortization related to net investment gains for the policyholder account balances.

Global Mortgage Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income—Global Mortgage Insurance Division

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	365		$	387		$	388		$	381		$	372		$	1,528
Net investment income		85			87			97			86			92			362
Net investment gains (losses)		(17	)		(4	)		(4	)		12			(3	)		1
Insurance and investment product fees and other		(2	)		(4	)		(7	)		(3	)		2			(12	)

Total revenues		431			466			474			476			463			1,879

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		94			145			199			107			110			561
Acquisition and operating expenses, net of deferrals		79			101			87			93			82			363
Amortization of deferred acquisition costs and intangibles		16			16			16			17			17			66
Interest expense		7			7			8			8			8			31

Total benefits and expenses		196			269			310			225			217			1,021

INCOME BEFORE INCOME TAXES		235			197			164			251			246			858
Provision for income taxes		75			237			24			61			80			402

NET INCOME (LOSS)		160			(40	)		140			190			166			456
Less: net income attributable to noncontrolling interests		50			52			57			52			35			196

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		110			(92	)		83			138			131			260
ADJUSTMENTS TO NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		6			1			2			(4	)		1			—
(Gains) losses on early extinguishment of debt, net		—			—			—			2			—			2
Tax impact from potential business portfolio changes		—			174			—			—			—			174

NET OPERATING INCOME⁽¹⁾	$	116		$	83		$	85		$	136		$	132		$	436


Effective tax rate (operating income)⁽²⁾		33.9	%		34.0	%		11.3	%		23.3	%		33.9	%		27.2	%

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the Global Mortgage Insurance Division was $124 million for the three months ended March 31, 2015.

⁽²⁾	The operating income (loss) effective tax rate for all pages in this financial supplement was calculated using whole dollars. As a result, the percentages shown may differ from an operating income (loss) effective tax rate calculated using the rounded numbers in this financial supplement.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Three months ended March 31, 2015	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	119		$	89		$	7		$	215		$	150		$	365
Net investment income		34			32			—			66			19			85
Net investment gains (losses)		(18	)		1			—			(17	)		—			(17	)
Insurance and investment product fees and other		1			(4	)		—			(3	)		1			(2	)

Total revenues		136			118			7			261			170			431

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		25			14			5			44			50			94
Acquisition and operating expenses, net of deferrals		12			22			8			42			37			79
Amortization of deferred acquisition costs and intangibles		9			5			—			14			2			16
Interest expense		5			2			—			7			—			7

Total benefits and expenses		51			43			13			107			89			196

INCOME (LOSS) BEFORE INCOME TAXES		85			75			(6	)		154			81			235
Provision for income taxes		22			24			—			46			29			75

NET INCOME (LOSS)		63			51			(6	)		108			52			160
Less: net income attributable to noncontrolling interests		29			21			—			50			—			50

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		34			30			(6	)		58			52			110

ADJUSTMENT TO NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		6			—			—			6			—			6

NET OPERATING INCOME (LOSS)	$	40		$	30		$	(6	)	$	64		$	52		$	116


Effective tax rate (operating income (loss))		28.1	%		33.6	%		4.9	%		32.3	%		35.7	%		33.9	%

	International Mortgage Insurance Segment
Three months ended March 31, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	130		$	97		$	8		$	235		$	137		$	372
Net investment income		39			34			1			74			18			92
Net investment gains (losses)		(3	)		—			—			(3	)		—			(3	)
Insurance and investment product fees and other		2			—			—			2			—			2

Total revenues		168			131			9			308			155			463

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		26			17			4			47			63			110
Acquisition and operating expenses, net of deferrals		21			19			9			49			33			82
Amortization of deferred acquisition costs and intangibles		10			5			—			15			2			17
Interest expense		5			3			—			8			—			8

Total benefits and expenses		62			44			13			119			98			217

INCOME (LOSS) BEFORE INCOME TAXES		106			87			(4	)		189			57			246
Provision for income taxes		31			25			—			56			24			80

NET INCOME (LOSS)		75			62			(4	)		133			33			166
Less: net income attributable to noncontrolling interests		35			—			—			35			—			35

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		40			62			(4	)		98			33			131

ADJUSTMENT TO NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		1			—			—			1			—			1

NET OPERATING INCOME (LOSS)	$	41		$	62		$	(4	)	$	99		$	33		$	132


Effective tax rate (operating income (loss))		31.6	%		29.0	%		10.3	%		30.7	%		42.0	%		33.9	%

International Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income—International Mortgage Insurance Segment

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	215		$	236		$	242		$	237		$	235		$	950
Net investment income		66			76			78			75			74			303
Net investment gains (losses)		(17	)		(4	)		(4	)		12			(3	)		1
Insurance and investment product fees and other		(3	)		(5	)		(7	)		(4	)		2			(14	)

Total revenues		261			303			309			320			308			1,240

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		44			54			58			45			47			204
Acquisition and operating expenses, net of deferrals		42			63			52			59			49			223
Amortization of deferred acquisition costs and intangibles		14			14			15			15			15			59
Interest expense		7			7			8			8			8			31

Total benefits and expenses		107			138			133			127			119			517

INCOME BEFORE INCOME TAXES		154			165			176			193			189			723
Provision for income taxes		46			226			34			42			56			358

NET INCOME (LOSS)		108			(61	)		142			151			133			365
Less: net income attributable to noncontrolling interests		50			52			57			52			35			196

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		58			(113	)		85			99			98			169

ADJUSTMENTS TO NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		6			1			2			(4	)		1			—
(Gains) losses on early extinguishment of debt, net		—			—			—			2			—			2
Tax impact from potential business portfolio changes		—			174			—			—			—			174

NET OPERATING INCOME⁽¹⁾	$	64		$	62		$	87		$	97		$	99		$	345


Effective tax rate (operating income)		32.3	%		34.5	%		19.0	%		18.8	%		30.7	%		25.7	%

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Mortgage Insurance segment was $72 million for the three months ended March 31, 2015.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income and Sales—International Mortgage Insurance Segment—Canada

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	119		$	127		$	130		$	128		$	130		$	515
Net investment income		34			38			39			39			39			155
Net investment gains (losses)		(18	)		(7	)		(4	)		12			(3	)		(2	)
Insurance and investment product fees and other		1			—			(2	)		1			2			1

Total revenues		136			158			163			180			168			669

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		25			33			28			15			26			102
Acquisition and operating expenses, net of deferrals		12			23			18			28			21			90
Amortization of deferred acquisition costs and intangibles		9			9			10			9			10			38
Interest expense		5			5			5			6			5			21

Total benefits and expenses		51			70			61			58			62			251

INCOME BEFORE INCOME TAXES		85			88			102			122			106			418
Provision for income taxes		22			24			24			32			31			111

NET INCOME		63			64			78			90			75			307
Less: net income attributable to noncontrolling interests		29			30			34			41			35			140

NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		34			34			44			49			40			167

ADJUSTMENTS TO NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		6			2			2			(4	)		1			1
(Gains) losses on early extinguishment of debt, net		—			—			—			2			—			2

NET OPERATING INCOME⁽¹⁾	$	40		$	36		$	46		$	47		$	41		$	170


Effective tax rate (operating income)		28.1	%		29.4	%		21.2	%		26.3	%		31.6	%		27.1	%

SALES:
New Insurance Written (NIW)
Flow	$	3,300		$	5,500		$	6,800		$	5,000		$	2,900		$	20,200
Bulk		5,000			2,300			5,600			7,500			2,900			18,300

Total Canada NIW⁽²⁾	$	8,300		$	7,800		$	12,400		$	12,500		$	5,800		$	38,500

⁽¹⁾	Net operating income for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $44 million for the three months ended March 31, 2015.

⁽²⁾	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $9,100 million for the three months ended March 31, 2015.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income and Sales—International Mortgage Insurance Segment—Australia

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	89		$	102		$	105		$	102		$	97		$	406
Net investment income		32			36			38			36			34			144
Net investment gains (losses)		1			3			—			—			—			3
Insurance and investment product fees and other		(4	)		(5	)		(7	)		(4	)		—			(16	)

Total revenues		118			136			136			134			131			537

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		14			15			22			24			17			78
Acquisition and operating expenses, net of deferrals		22			30			25			23			19			97
Amortization of deferred acquisition costs and intangibles		5			5			5			6			5			21
Interest expense		2			2			3			2			3			10

Total benefits and expenses		43			52			55			55			44			206

INCOME BEFORE INCOME TAXES		75			84			81			79			87			331
Provision for income taxes		24			202			10			11			25			248

NET INCOME (LOSS)		51			(118	)		71			68			62			83
Less: net income attributable to noncontrolling interests		21			22			23			11			—			56

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		30			(140	)		48			57			62			27

ADJUSTMENTS TO NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		—			(1	)		—			—			—			(1	)
Tax impact from potential business portfolio changes		—			174			—			—			—			174

NET OPERATING INCOME⁽¹⁾	$	30		$	33		$	48		$	57		$	62		$	200


Effective tax rate (operating income)		33.6	%		34.8	%		14.2	%		10.4	%		29.0	%		22.3	%

SALES:
New Insurance Written (NIW)
Flow	$	5,800		$	8,000		$	8,100		$	7,900		$	7,800		$	31,800
Bulk		—			100			1,000			—			—			1,100

Total Australia NIW⁽²⁾	$	5,800		$	8,100		$	9,100		$	7,900		$	7,800		$	32,900

⁽¹⁾	Net operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $34 million for the three months ended March 31, 2015.

⁽²⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $6,500 million for the three months ended March 31, 2015.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Loss and Sales—International Mortgage Insurance Segment—Other Countries

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	7		$	7		$	7		$	7		$	8		$	29
Net investment income		—			2			1			—			1			4
Net investment gains (losses)		—			—			—			—			—			—
Insurance and investment product fees and other		—			—			2			(1	)		—			1

Total revenues		7			9			10			6			9			34

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		5			6			8			6			4			24
Acquisition and operating expenses, net of deferrals		8			10			9			8			9			36
Amortization of deferred acquisition costs and intangibles		—			—			—			—			—			—
Interest expense		—			—			—			—			—			—

Total benefits and expenses		13			16			17			14			13			60

LOSS BEFORE INCOME TAXES		(6	)		(7	)		(7	)		(8	)		(4	)		(26	)
Provision (benefit) for income taxes		—			—			—			(1	)		—			(1	)

NET LOSS		(6	)		(7	)		(7	)		(7	)		(4	)		(25	)
Less: net income attributable to noncontrolling interests		—			—			—			—			—			—

NET LOSS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(6	)		(7	)		(7	)		(7	)		(4	)		(25	)

ADJUSTMENT TO NET LOSS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		—			—			—			—			—			—

NET OPERATING LOSS⁽¹⁾	$	(6	)	$	(7	)	$	(7	)	$	(7	)	$	(4	)	$	(25	)


Effective tax rate (operating loss)		4.9	%		-4.2	%		-2.2	%		11.3	%		10.3	%		3.8	%

SALES:
New Insurance Written (NIW)
Flow	$	400		$	500		$	400		$	500		$	400		$	1,800
Bulk		200			—			—			—			—			—

Total Other Countries NIW⁽²⁾	$	600		$	500		$	400		$	500		$	400		$	1,800

⁽¹⁾	Net operating loss for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $6 million for the three months ended March 31, 2015.

⁽²⁾	New insurance written for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $700 million for the three months ended March 31, 2015.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written
Canada	$	109		$	160		$	200		$	146		$	77		$	583
Australia		87			128			130			125			126			509
Other Countries⁽¹⁾		6			6			6			1			6			19

Total Net Premiums Written	$	202		$	294		$	336		$	272		$	209		$	1,111

Loss Ratio⁽²⁾
Canada		22	%		26	%		21	%		12	%		20	%		20	%
Australia⁽³⁾		15	%		15	%		21	%		23	%		17	%		19	%
Other Countries		81	%		84	%		105	%		90	%		55	%		83	%
Total Loss Ratio		21	%		23	%		24	%		19	%		20	%		21	%

GAAP Basis Expense Ratio⁽⁴⁾
Canada⁽⁵⁾		18	%		26	%		22	%		29	%		23	%		25	%
Australia		30	%		34	%		28	%		28	%		25	%		29	%
Other Countries⁽¹⁾		125	%		115	%		126	%		131	%		107	%		120	%
Total GAAP Basis Expense Ratio		26	%		32	%		28	%		32	%		27	%		30	%

Adjusted Expense Ratio⁽⁶⁾
Canada⁽⁷⁾		20	%		20	%		14	%		26	%		39	%		22	%
Australia		31	%		27	%		23	%		23	%		20	%		23	%
Other Countries⁽¹⁾		132	%		132	%		150	%		NM	⁽⁸⁾		142	%		186	%
Total Adjusted Expense Ratio		28	%		26	%		20	%		28	%		30	%		25	%

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⁾

Includes the impact of settlements and cancelled insurance contracts, primarily with lenders in Europe. Primary flow risk in-force excludes $271 million, $296 million, $290 million, $298 million and $282 million of risk in-force in Europe ceded under quota share reinsurance agreements as of March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.

⁽²⁾	The ratio of incurred losses and loss adjustment expense to net earned premiums.

⁽³⁾	During the first quarter of 2015, the company accrued a $7 million pre-tax receivable for expected recoveries relating to paid claims reflecting its experience of successful borrower recovery activity, which favorably impacted the loss ratio by nine points.

⁽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⁾	Excluding the impact of debt early redemption payment of $6 million in the second quarter of 2014, the GAAP basis expense ratio was 24% for both the three months ended June 30, 2014 and the twelve months ended December 31, 2014.

⁽⁶⁾	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.

⁽⁷⁾	Excluding the impact of debt early redemption payment of $6 million in the second quarter of 2014, the adjusted expense ratio was 21% for both the three months ended June 30, 2014 and the twelve months ended December 31, 2014.

⁽⁸⁾	“NM” is defined as not meaningful for percentages greater than 200%.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2015		2014
	1Q		4Q		3Q		2Q		1Q
Primary Insurance In-Force
Canada⁽¹⁾	$	288,800	$	306,600	$	310,800	$	314,500	$	291,900
Australia		240,900		256,000		271,100		288,500		281,000
Other Countries		19,800		21,900		23,900		26,000		26,200

Total Primary Insurance In-Force	$	549,500	$	584,500	$	605,800	$	629,000	$	599,100

Primary Risk In-Force⁽²⁾
Canada
Flow	$	75,700	$	81,300	$	82,600	$	84,500	$	80,100
Bulk		25,400		26,000		26,200		25,600		22,100

Total Canada		101,100		107,300		108,800		110,100		102,200

Australia
Flow		78,600		83,400		88,100		93,800		91,100
Bulk		5,700		6,200		6,800		7,200		7,200

Total Australia		84,300		89,600		94,900		101,000		98,300

Other Countries
Flow^(3),(4)		2,000		2,200		3,000		3,200		3,300
Bulk		300		300		300		400		400

Total Other Countries		2,300		2,500		3,300		3,600		3,700

Total Primary Risk In-Force	$	187,700	$	199,400	$	207,000	$	214,700	$	204,200

⁽¹⁾

As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding balances in Canada from most of its customers. As a result, the company estimates that the outstanding balance of insured mortgages was approximately $145.0 billion as of December 31, 2014, $148.0 billion as of September 30, 2014, $152.0 billion as of June 30, 2014 and $141.0 billion as of March 31, 2014. This is based on the extrapolation of the amounts reported by lenders to the entire insured population.

⁽²⁾

The businesses in Australia and Canada currently provide 100% coverage on the majority of the loans the company insures in those markets. For the purpose of representing the risk in-force, the company 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 businesses in Australia and Canada. This factor was 35% for all periods presented.

⁽³⁾

⁽⁴⁾	Beginning in the fourth quarter of 2014, risk in-force reflects a maximum risk exposure of approximately $60 million with one lender in Ireland as a result of a settlement completed during the fourth quarter of 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(dollar amounts in millions)


Primary Insurance	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Insured loans in-force^(1),(2)		1,704,483			1,673,505			1,646,223			1,602,928			1,549,650
Insured delinquent loans		1,792			1,756			1,708			1,703			1,860
Insured delinquency rate^(2),(3)		0.11	%		0.10	%		0.10	%		0.11	%		0.12	%

Flow loans in-force⁽¹⁾		1,266,626			1,255,050			1,236,206			1,213,846			1,197,083
Flow delinquent loans		1,532			1,493			1,477			1,493			1,634
Flow delinquency rate⁽³⁾		0.12	%		0.12	%		0.12	%		0.12	%		0.14	%

Bulk loans in-force⁽¹⁾		437,857			418,455			410,017			389,082			352,567
Bulk delinquent loans		260			263			231			210			226
Bulk delinquency rate⁽³⁾		0.06	%		0.06	%		0.06	%		0.05	%		0.06	%

Loss Metrics	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Beginning Reserves	$	91		$	89		$	90		$	97		$	102
Paid claims⁽⁴⁾		(22	)		(24	)		(24	)		(26	)		(27	)
Increase in reserves		24			29			27			16			26
Impact of changes in foreign exchange rates		(8	)		(3	)		(4	)		3			(4	)

Ending Reserves	$	85		$	91		$	89		$	90		$	97


	March 31, 2015						December 31, 2014						March 31, 2014
Province and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
Ontario		46	%		0.05	%		46	%		0.05	%		47	%		0.07%
Alberta		17			0.09	%		17			0.10	%		16			0.12%
Quebec		14			0.19	%		14			0.19	%		14			0.19%
British Columbia		14			0.13	%		14			0.14	%		15			0.17%
Saskatchewan		3			0.15	%		3			0.13	%		2			0.11%
Nova Scotia		2			0.23	%		2			0.23	%		2			0.24%
Manitoba		2			0.07	%		2			0.07	%		2			0.08%
New Brunswick		1			0.22	%		1			0.20	%		1			0.24%
All Other		1			0.12	%		1			0.12	%		1			0.11%

Total		100	%		0.11	%		100	%		0.10	%		100	%		0.12%


By Policy Year
2007 and prior		39	%		0.05	%		40	%		0.05	%		44	%		0.07%
2008		7			0.22	%		7			0.21	%		8			0.25%
2009		5			0.19	%		5			0.22	%		5			0.25%
2010		7			0.23	%		8			0.23	%		9			0.26%
2011		7			0.26	%		7			0.25	%		8			0.27%
2012		10			0.19	%		10			0.19	%		12			0.14%
2013		10			0.11	%		11			0.09	%		12			0.04%
2014		12			0.05	%		12			0.02	%		2			— %
2015		3			—	%		—			—	%		—			— %

Total		100	%		0.11	%		100	%		0.10	%		100	%		0.12%

⁽¹⁾	Insured loans in-force represent the original number of loans insured for which the coverage term has not expired, and for which no policy level cancellation or termination has been received.

⁽²⁾

As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding loans in-force in Canada from most of its customers. As a result, the company estimates that the outstanding loans in-force were 793,700 and 783,700 as of December 31, 2014 and September 30, 2014, respectively. This is based on the extrapolation of the amounts reported by lenders to the entire insured population. The corresponding insured delinquency rate was 0.22% as of December 31, 2014 and September 30, 2014.

⁽³⁾	Delinquent rates are based on insured loans in-force.

⁽⁴⁾	Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(Canadian dollar amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	25		$	26		$	25		$	28		$	28		$	107
Bulk		2			1			1			—			1			3

Total Paid Claims	$	27		$	27		$	26		$	28		$	29		$	110


Average Paid Claim (in thousands)	$	67.9		$	60.2		$	63.9		$	63.4		$	66.4

Average Reserve Per Delinquency (in thousands)	$	60.4		$	60.2		$	58.4		$	56.4		$	57.5

Loss Metrics

Beginning Reserves	$	106		$	100		$	96		$	107		$	108
Paid claims⁽¹⁾		(27	)		(27	)		(26	)		(28	)		(29	)
Increase in reserves		29			33			30			17			28

Ending Reserves	$	108		$	106		$	100		$	96		$	107

Loan Amount⁽²⁾

Over $550K		6	%		6	%		6	%		5	%		5	%
$400K to $550K		12			11			11			11			11
$250K to $400K		33			33			32			32			32
$100K to $250K		44			45			46			47			47
$100K or Less		5			5			5			5			5

Total		100	%		100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	215		$	213		$	212		$	209		$	208

Average Effective Loan-To-Value Ratios By Policy Year⁽³⁾

2006 and prior		36	%		36	%		38	%		39	%		39	%
2007		61	%		61	%		64	%		64	%		65	%
2008		68	%		68	%		71	%		71	%		71	%
2009		66	%		66	%		69	%		70	%		70	%
2010		73	%		73	%		76	%		77	%		77	%
2011		77	%		77	%		80	%		81	%		81	%
2012		82	%		82	%		86	%		86	%		87	%
2013		86	%		87	%		90	%		91	%		91	%
2014		92	%		92	%		93	%		93	%		—	%
Total Flow		56	%		56	%		57	%		57	%		57	%

Total Bulk		42	%		42	%		42	%		41	%		41	%
Total		52	%		52	%		53	%		54	%		54	%

All amounts presented in Canadian dollars.

⁽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⁾

Loan amounts (including capitalized premiums) reflect interest rates at time of loan origination and estimated scheduled principal repayments since loan origination. Home price estimates based on regional home price appreciation/depreciation data from the Canadian Real Estate Association. All data used in the effective loan-to-value ratio calculation reflects conditions as of the end of the previous quarter.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(dollar amounts in millions)


Primary Insurance	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Insured loans in-force		1,498,197			1,496,616			1,490,221			1,481,201			1,477,063
Insured delinquent loans		5,378			4,953			5,300			5,405			5,070
Insured delinquency rate		0.36	%		0.33	%		0.36	%		0.36	%		0.34	%

Flow loans in-force		1,382,156			1,378,584			1,370,136			1,362,236			1,355,635
Flow delinquent loans		5,112			4,714			5,031			5,125			4,813
Flow delinquency rate		0.37	%		0.34	%		0.37	%		0.38	%		0.36	%

Bulk loans in-force		116,041			118,032			120,085			118,965			121,428
Bulk delinquent loans		266			239			269			280			257
Bulk delinquency rate		0.23	%		0.20	%		0.22	%		0.24	%		0.21	%

Loss Metrics	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Beginning Reserves	$	152		$	161		$	171		$	168		$	172
Paid claims⁽¹⁾		(14	)		(14	)		(19	)		(24	)		(27	)
Increase in reserves		21			15			22			24			17
Impact of changes in foreign exchange rates		(10	)		(10	)		(13	)		3			6

Ending Reserves	$	149		$	152		$	161		$	171		$	168


	March 31, 2015						December 31, 2014						March 31, 2014
State and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
New South Wales		29	%		0.29	%		29	%		0.27	%		29	%		0.31%
Queensland		23			0.50	%		23			0.47	%		23			0.45%
Victoria		23			0.32	%		23			0.30	%		23			0.31%
Western Australia		11			0.37	%		11			0.32	%		11			0.33%
South Australia		6			0.48	%		6			0.44	%		6			0.42%
Australian Capital Territory		3			0.13	%		3			0.16	%		3			0.11%
Tasmania		2			0.28	%		2			0.25	%		2			0.29%
New Zealand		2			0.27	%		2			0.28	%		2			0.34%
Northern Territory		1			0.20	%		1			0.16	%		1			0.20%

Total		100	%		0.36	%		100	%		0.33	%		100	%		0.34%


By Policy Year
2007 and prior		39	%		0.29	%		40	%		0.26	%		43	%		0.29%
2008		7			0.87	%		7			0.87	%		8			0.89%
2009		9			0.70	%		9			0.66	%		10			0.64%
2010		6			0.42	%		6			0.38	%		7			0.36%
2011		7			0.42	%		7			0.40	%		8			0.34%
2012		9			0.40	%		9			0.32	%		10			0.22%
2013		10			0.26	%		11			0.18	%		11			0.05%
2014		11			0.06	%		11			0.02	%		3			— %
2015		2			—	%		—			—	%		—			— %

Total		100	%		0.36	%		100	%		0.33	%		100	%		0.34%

⁽¹⁾	Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(Australian dollar amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	17		$	15		$	20		$	25		$	30		$	90
Bulk		1			—			1			—			—			1

Total Paid Claims	$	18		$	15		$	21		$	25		$	30		$	91


Average Paid Claim (in thousands)	$	62.5		$	49.5		$	58.6		$	60.5		$	65.1

Average Reserve Per Delinquency (in thousands)	$	36.4		$	37.6		$	34.8		$	33.6		$	35.7

Loss Metrics
Beginning Reserves	$	186		$	184		$	181		$	181		$	192
Paid claims⁽¹⁾		(18	)		(15	)		(21	)		(25	)		(30	)
Increase in reserves		28			17			24			25			19

Ending Reserves	$	196		$	186		$	184		$	181		$	181

Loan Amount⁽²⁾
Over $550K		13	%		13	%		13	%		12	%		12	%
$400K to $550K		19			18			18			18			18
$250K to $400K		37			37			37			37			37
$100K to $250K		26			26			26			27			27
$100K or Less		5			6			6			6			6

Total		100	%		100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	211		$	210		$	208		$	207		$	205

Average Effective Loan-To-Value Ratios By Policy Year⁽³⁾

2006 and prior		36	%		36	%		38	%		38	%		40	%
2007		57	%		58	%		60	%		61	%		63	%
2008		65	%		66	%		67	%		68	%		70	%
2009		67	%		68	%		69	%		70	%		73	%
2010		72	%		73	%		74	%		76	%		78	%
2011		73	%		74	%		76	%		77	%		80	%
2012		74	%		75	%		77	%		78	%		80	%
2013		78	%		79	%		81	%		82	%		84	%
2014		85	%		86	%		87	%		87	%		—	%
Total Flow		60	%		60	%		61	%		61	%		62	%

Total Bulk		27	%		28	%		28	%		29	%		30	%
Total		56	%		57	%		58	%		58	%		59	%

All amounts presented in Australian dollars.

⁽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⁾

Loan amounts (including capitalized premiums) reflect interest rates at time of loan origination and estimated scheduled principal repayments since loan origination. Home price estimates based on regional home price appreciation/depreciation data from RP Data. All data used in the effective loan-to-value ratio calculation reflects conditions as of the end of the previous quarter. Effective loan-to-value ratios exclude New Zealand and inward reinsurance policies.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


Risk In-Force by Loan-To-Value Ratio⁽¹⁾	March 31, 2015						December 31, 2014
	Primary		Flow		Bulk		Primary		Flow		Bulk
Canada
95.01% and above	$	35,468	$	35,468	$	—	$	37,991	$	37,991	$	—
90.01% to 95.00%⁽²⁾		23,036		23,036		—		24,836		24,836		—
80.01% to 90.00%⁽²⁾		14,333		14,330		3		15,499		15,499		—
80.00% and below⁽²⁾		28,236		2,828		25,408		28,999		3,038		25,961

Total Canada	$	101,073	$	75,662	$	25,411	$	107,325	$	81,364	$	25,961

Australia
95.01% and above	$	16,088	$	16,088	$	—	$	17,143	$	17,143	$	—
90.01% to 95.00%		21,121		21,114		7		22,207		22,200		7
80.01% to 90.00%		22,210		22,140		70		23,482		23,406		76
80.00% and below		24,887		19,267		5,620		26,758		20,615		6,143

Total Australia	$	84,306	$	78,609	$	5,697	$	89,590	$	83,364	$	6,226

Other Countries⁽³⁾
95.01% and above	$	466	$	466	$	—	$	534	$	534	$	—
90.01% to 95.00%		1,090		1,039		51		1,217		1,167		50
80.01% to 90.00%		575		342		233		617		397		220
80.00% and below		143		112		31		163		130		33

Total Other Countries	$	2,273	$	1,958	$	315	$	2,531	$	2,228	$	303

Amounts

may not total due to rounding.

⁽¹⁾	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

⁽²⁾	Previously, lender paid premiums were utilized in the calculation of the loan-to-value ratio for effective risk in-force loans and should have been excluded. Amounts for the prior period have been re-presented to reflect the correction to this calculation.

⁽³⁾	Other Countries flow and primary risk in-force exclude $271 million and $296 million, respectively, of risk in-force in Europe ceded under quota share reinsurance agreements as of March 31, 2015 and December 31, 2014.

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income (Loss) and Sales—U.S. Mortgage Insurance Segment

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	150		$	151		$	146		$	144		$	137		$	578
Net investment income		19			11			19			11			18			59
Net investment gains (losses)		—			—			—			—			—			—
Insurance and investment product fees and other		1			1			—			1			—			2

Total revenues		170			163			165			156			155			639

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		50			91			141			62			63			357
Acquisition and operating expenses, net of deferrals		37			38			35			34			33			140
Amortization of deferred acquisition costs and intangibles		2			2			1			2			2			7

Total benefits and expenses		89			131			177			98			98			504

INCOME (LOSS) BEFORE INCOME TAXES		81			32			(12	)		58			57			135
Provision (benefit) for income taxes		29			11			(10	)		19			24			44

NET INCOME (LOSS)		52			21			(2	)		39			33			91

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net		—			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	52		$	21		$	(2	)	$	39		$	33		$	91


Effective tax rate (operating income (loss))		35.7	%		32.5	%		80.1	%		32.4	%		42.0	%		32.2	%

SALES:
New Insurance Written (NIW)
Flow	$	6,300		$	6,900		$	7,500		$	6,100		$	3,900		$	24,400
Bulk		—			—			—			—			—			—

Total U.S. Mortgage Insurance NIW	$	6,300		$	6,900		$	7,500		$	6,100		$	3,900		$	24,400

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Flow New Insurance Written Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	2015					2014
	1Q					4Q					3Q					2Q					1Q
	Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)
Product
Monthly⁽¹⁾	$	4,400		60		$	5,100		60		$	6,100		59		$	5,300		59		$	3,400		58
Single		1,900		160			1,800		155			1,400		194			800		197			500		200

Total Flow	$	6,300				$	6,900				$	7,500				$	6,100				$	3,900


	Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW
FICO Scores
Over 735	$	3,700		59	%	$	4,100		59	%	$	4,400		59	%	$	3,600		59	%	$	2,400		61	%
680 - 735		2,100		33			2,200		32			2,400		32			2,000		33			1,200		31
660 - 679⁽²⁾		300		5			300		5			400		5			300		5			200		5
620 - 659		200		3			300		4			300		4			200		3			100		3
<620		—		—			—		—			—		—			—		—			—		—

Total Flow	$	6,300		100	%	$	6,900		100	%	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%

Loan-To-Value Ratio
95.01% and above	$	300		5	%	$	100		2	%	$	200		3	%	$	100		2	%	$	100		3	%
90.01% to 95.00%		3,100		49			3,500		51			3,900		52			3,300		54			1,900		49
85.01% to 90.00%		2,000		32			2,300		33			2,400		32			1,900		31			1,300		33
85.00% and below		900		14			1,000		14			1,000		13			800		13			600		15

Total Flow	$	6,300		100	%	$	6,900		100	%	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%

Origination
Purchase	$	4,300		68	%	$	5,300		77	%	$	6,400		85	%	$	5,100		84	%	$	3,000		77	%
Refinance		2,000		32			1,600		23			1,100		15			1,000		16			900		23

Total Flow	$	6,300		100	%	$	6,900		100	%	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	170		$	171		$	162		$	151		$	144		$	628

New Risk Written
Flow	$	1,557		$	1,703		$	1,878		$	1,521		$	960		$	6,062
Bulk		—			—			—			—			—			—

Total Primary		1,557			1,703			1,878			1,521			960			6,062
Pool		—			—			—			—			—			—

Total New Risk Written	$	1,557		$	1,703		$	1,878		$	1,521		$	960		$	6,062


Primary Insurance In-Force	$	115,200		$	114,400		$	112,400		$	110,500		$	109,100

Risk In-Force
Flow	$	28,415		$	28,112		$	27,507		$	26,880		$	26,405
Bulk⁽¹⁾		387			402			419			434			442

Total Primary		28,802			28,514			27,926			27,314			26,847
Pool		142			151			159			163			171

Total Risk In-Force	$	28,944		$	28,665		$	28,085		$	27,477		$	27,018


Primary Risk In-Force That Is GSE Conforming		97	%		97	%		97	%		97	%		97	%

GAAP Basis Expense Ratio⁽²⁾		26	%		26	%		25	%		25	%		25	%		25	%

Adjusted Expense Ratio⁽³⁾		23	%		23	%		23	%		23	%		24	%		23	%

Flow Persistency		81	%		83	%		80	%		83	%		85	%

Risk To Capital Ratio⁽⁴⁾		14.1:1			14.5:1			15.4:1			14.6:1			18.7:1

Average Primary Loan Size (in thousands)	$	182		$	181		$	180		$	178		$	176

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⁾	As of March 31, 2015, 84% of our bulk risk in-force was related to loans financed by lenders who participated in the mortgage programs sponsored by the Federal Home Loan Banks.

⁽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 written premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

⁽⁴⁾

Certain states limit a private mortgage 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.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Loss Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow
Direct	$	130		$	142		$	148		$	148		$	178		$	616
Assumed⁽¹⁾		5			3			4			6			6			19
Ceded		(16	)		(4	)		(3	)		(4	)		(15	)		(26	)
Loss adjustment expenses		4			4			4			4			5			17

Total Flow		123			145			153			154			174			626
Bulk		2			2			2			2			2			8

Total Primary		125			147			155			156			176			634
Pool		1			2			1			1			1			5

Total Paid Claims	$	126		$	149		$	156		$	157		$	177		$	639


Average Paid Claim (in thousands)	$	46.5		$	46.6		$	47.6		$	47.2		$	43.6

Average Reserve Per Delinquency (in thousands)
Flow	$	31.0		$	30.2		$	30.7		$	30.0		$	30.3
Bulk loans with established reserve		21.2			20.4			20.5			22.5			19.2
Bulk loans with no reserve⁽²⁾		—			—			—			—			—

Reserves:
Flow direct case	$	992		$	1,065		$	1,122		$	1,083		$	1,172
Bulk direct case		20			21			22			24			25
Assumed⁽¹⁾		15			21			21			24			29
All other⁽³⁾		60			73			74			125			129

Total Reserves	$	1,087		$	1,180		$	1,239		$	1,256		$	1,355


Beginning Reserves	$	1,180		$	1,239		$	1,256		$	1,355		$	1,482		$	1,482
Paid claims		(142	)		(153	)		(158	)		(162	)		(192	)		(665	)
Increase in reserves		49			94			141			63			65			363

Ending Reserves	$	1,087		$	1,180		$	1,239		$	1,256		$	1,355		$	1,180


Beginning Reinsurance Recoverable⁽⁴⁾	$	24		$	25		$	27		$	31		$	44		$	44
Ceded paid claims		(16	)		(4	)		(2	)		(5	)		(15	)		(26	)
Increase in recoverable		(1	)		3			—			1			2			6

Ending Reinsurance Recoverable	$	7		$	24		$	25		$	27		$	31		$	24

Loss Ratio⁽⁵⁾		33	%		61	%		97	%		43	%		46	%		62	%

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⁾	Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes currently have no risk for claim.

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

⁽⁴⁾	Reinsurance recoverable excludes ceded unearned premium recoveries and amounts for which cash proceeds have not yet been received.

⁽⁵⁾	The ratio of incurred losses to net earned premiums. Lender settlements of $53 million in the third quarter of 2014 increased the loss ratio by 37 percentage points and 9 percentage points for the three months ended September 30, 2014 and the twelve months ended December 31, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		34,220			38,177			39,485			40,897			43,733
Bulk loans with an established reserve		984			1,109			1,147			1,147			1,434
Bulk loans with no reserve⁽¹⁾		461			500			515			561			694

Total Number of Primary Delinquencies		35,665			39,786			41,147			42,605			45,861


Beginning Number of Primary Delinquencies		39,786			41,147			42,605			45,861			51,459			51,459
New delinquencies		9,554			10,826			11,574			10,568			12,100			45,068
Delinquency cures		(10,988	)		(9,030	)		(9,790	)		(10,545	)		(13,678	)		(43,043	)
Paid claims		(2,687	)		(3,157	)		(3,242	)		(3,279	)		(4,020	)		(13,698	)

Ending Number of Primary Delinquencies		35,665			39,786			41,147			42,605			45,861			39,786


Composition of Cures
Reported delinquent and cured-intraquarter		2,271			1,434			2,093			1,993			3,141
Number of missed payments delinquent prior to cure:
3 payments or less		6,112			5,340			5,202			5,335			7,252
4 - 11 payments		1,912			1,613			1,772			2,253			2,391
12 payments or more		693			643			723			964			894

Total		10,988			9,030			9,790			10,545			13,678


Primary Delinquencies by Missed Payment Status
3 payments or less		9,271			11,318			11,478			11,228			11,351
4 - 11 payments		9,086			9,684			9,610			9,913			11,463
12 payments or more		17,308			18,784			20,059			21,464			23,047

Primary Delinquencies		35,665			39,786			41,147			42,605			45,861



				March 31, 2015
Flow Delinquencies and Percentage Reserved by Payment Status				Delinquencies			Direct Case Reserves⁽²⁾			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default					8,895		$	57		$	360			16%
4 - 11 payments in default					8,792			223			361			62%
12 payments or more in default					16,533			712			825			86%

Total					34,220		$	992		$	1,546			64%


				December 31, 2014
Flow Delinquencies and Percentage Reserved by Payment Status				Delinquencies			Direct Case Reserves⁽²⁾			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default					10,849		$	76		$	426			18%
4 - 11 payments in default					9,368			238			383			62%
12 payments or more in default					17,960			751			895			84%

Total					38,177		$	1,065		$	1,704			63%

⁽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 currently have no risk for claim.

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2015			2014
	1Q			4Q			3Q			2Q			1Q
Primary Loans
Primary loans in-force		631,591			630,852			624,850			620,415			618,442
Primary delinquent loans		35,665			39,786			41,147			42,605			45,861
Primary delinquency rate		5.65	%		6.31	%		6.59	%		6.87	%		7.42	%

Flow loans in-force		601,472			599,206			591,823			585,719			582,553
Flow delinquent loans		34,220			38,177			39,485			40,897			43,733
Flow delinquency rate		5.69	%		6.37	%		6.67	%		6.98	%		7.51	%

Bulk loans in-force		30,119			31,646			33,027			34,696			35,889
Bulk delinquent loans		1,445			1,609			1,662			1,708			2,128
Bulk delinquency rate		4.80	%		5.08	%		5.03	%		4.92	%		5.93	%

A minus and sub-prime loans in-force		33,805			33,529			34,825			36,219			37,714
A minus and sub-prime delinquent loans		7,019			7,851			8,017			8,238			8,789
A minus and sub-prime delinquency rate		20.76	%		23.42	%		23.02	%		22.74	%		23.30	%

Pool Loans
Pool loans in-force		7,979			8,282			10,125			10,336			10,710
Pool delinquent loans		468			521			549			546			575
Pool delinquency rate		5.87	%		6.29	%		5.42	%		5.28	%		5.37	%

Primary Risk In-Force by Credit Quality
Over 735		52	%		51	%		51	%		51	%		50	%
680-735		31	%		31	%		30	%		30	%		30	%
660-679⁽¹⁾		7	%		7	%		7	%		7	%		8	%
620-659		7	%		8	%		8	%		8	%		8	%
< 620		3	%		3	%		4	%		4	%		4	%

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	March 31, 2015
Policy Year	Average Rate⁽¹⁾			% of Total Reserves⁽²⁾			Primary Insurance In-Force		% of Total			Primary Risk In-Force		% of Total			Deliquency Rate
2004 and prior		6.09	%		12.2	%	$	5,110		4.4	%	$	1,164		4.0	%		14.37	%
2005		5.66	%		12.3			4,378		3.8			1,173		4.1			13.58	%
2006		5.90	%		17.7			6,919		6.0			1,765		6.1			13.13	%
2007		5.82	%		36.9			16,817		14.6			4,223		14.7			12.19	%
2008		5.35	%		17.8			14,748		12.8			3,732		12.9			7.08	%
2009		4.96	%		0.7			2,372		2.1			545		1.9			2.15	%
2010		4.69	%		0.6			3,129		2.7			750		2.6			1.41	%
2011		4.51	%		0.5			4,224		3.7			1,061		3.7			1.07	%
2012		3.80	%		0.5			10,533		9.1			2,672		9.3			0.47	%
2013		3.97	%		0.5			18,003		15.6			4,497		15.6			0.36	%
2014		4.39	%		0.3			22,690		19.7			5,669		19.7			0.15	%
2015		4.08	%		—			6,320		5.5			1,551		5.4			0.02	%

Total		4.93	%		100.0	%	$	115,243		100.0	%	$	28,802		100.0	%		5.65	%


	March 31, 2015						December 31, 2014					March 31, 2014
	Primary Risk In-Force			Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate
Lender concentration (by original applicant)	$	28,802			5.65	%	$	28,514		6.31	%	$	26,847		7.42	%
Top 10 lenders		12,123			6.98	%		12,306		7.65	%		12,450		8.41	%
Top 20 lenders		14,177			6.54	%		14,322		7.47	%		14,337		8.32	%

Loan-to-value ratio
95.01% and above	$	6,654			8.16	%	$	6,763		9.07	%	$	7,267		9.24	%
90.01% to 95.00%		12,398			4.34	%		12,008		4.99	%		10,187		6.57	%
80.01% to 90.00%		9,402			5.51	%		9,383		6.03	%		8,999		7.30	%
80.00% and below		348			3.37	%		360		3.55	%		394		3.59	%

Total	$	28,802			5.65	%	$	28,514		6.31	%	$	26,847		7.42	%

Loan grade
Prime	$	27,593			4.81	%	$	27,262		5.35	%	$	25,446		6.38	%
A minus and sub-prime		1,209			21.18	%		1,252		23.42	%		1,401		23.30	%

Total	$	28,802			5.65	%	$	28,514		6.31	%	$	26,847		7.42	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $1,087 million as of March 31, 2015.

U.S. Life Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income (Loss)—U.S. Life Insurance Division

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	778		$	827		$	821		$	762		$	759		$	3,169
Net investment income		671			676			658			671			660			2,665
Net investment gains (losses)		(4	)		12			1			25			3			41
Insurance and investment product fees and other		180			180			186			175			171			712

Total revenues		1,625			1,695			1,666			1,633			1,593			6,587

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,091			1,981			1,722			1,087			1,030			5,820
Interest credited		150			154			155			155			154			618
Acquisition and operating expenses, net of deferrals		163			168			173			156			161			658
Amortization of deferred acquisition costs and intangibles		73			98			91			81			75			345
Goodwill impairment		—			299			550			—			—			849
Interest expense		25			23			22			21			21			87

Total benefits and expenses		1,502			2,723			2,713			1,500			1,441			8,377

INCOME (LOSS) BEFORE INCOME TAXES		123			(1,028	)		(1,047	)		133			152			(1,790	)
Provision (benefit) for income taxes		43			(278	)		(211	)		47			57			(385	)

NET INCOME (LOSS)		80			(750	)		(836	)		86			95			(1,405	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		1			(6	)		(3	)		(17	)		(1	)		(27	)
Goodwill impairment, net		—			274			517			—			—			791

NET OPERATING INCOME (LOSS)	$	81		$	(482	)	$	(322	)	$	69		$	94		$	(641	)


Effective tax rate (operating income (loss))		35.3	%		34.7	%		35.8	%		35.6	%		37.3	%		34.7	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income—U.S. Life Insurance Division

(amounts in millions)


	U.S. Life Insurance Segment
Three months ended March 31, 2015	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	589		$	179		$	10		$	778		$	778
Net investment income		313			127			231			671			671
Net investment gains (losses)		3			3			(10	)		(4	)		(4	)
Insurance and investment product fees and other		—			178			2			180			180

Total revenues		905			487			233			1,625			1,625

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		766			250			75			1,091			1,091
Interest credited		—			66			84			150			150
Acquisition and operating expenses, net of deferrals		95			51			17			163			163
Amortization of deferred acquisition costs and intangibles		26			30			17			73			73
Interest expense		—			25			—			25			25

Total benefits and expenses		887			422			193			1,502			1,502

INCOME BEFORE INCOME TAXES		18			65			40			123			123
Provision for income taxes		6			23			14			43			43

NET INCOME		12			42			26			80			80

ADJUSTMENT TO NET INCOME:
Net investment (gains) losses, net		(2	)		(2	)		5			1			1

NET OPERATING INCOME	$	10		$	40		$	31		$	81		$	81

Effective tax rate (operating income)		35.3	%		35.3	%		35.3	%		35.3	%		35.3	%

	U.S. Life Insurance Segment
Three months ended March 31, 2014	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	565		$	183		$	11		$	759		$	759
Net investment income		290			128			242			660			660
Net investment gains (losses)		—			1			2			3			3
Insurance and investment product fees and other		1			168			2			171			171

Total revenues		856			480			257			1,593			1,593

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		664			281			85			1,030			1,030
Interest credited		—			66			88			154			154
Acquisition and operating expenses, net of deferrals		93			50			18			161			161
Amortization of deferred acquisition costs and intangibles		26			26			23			75			75
Interest expense		—			21			—			21			21

Total benefits and expenses		783			444			214			1,441			1,441

INCOME BEFORE INCOME TAXES		73			36			43			152			152
Provision for income taxes		27			14			16			57			57

NET INCOME		46			22			27			95			95

ADJUSTMENT TO NET INCOME:
Net investment (gains) losses, net		—			(1	)		—			(1	)		(1	)

NET OPERATING INCOME	$	46		$	21		$	27		$	94		$	94

Effective tax rate (operating income)		37.0	%		39.3	%		36.2	%		37.3	%		37.3	%

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income (Loss) and Sales—U.S. Life Insurance Segment—Long-Term Care Insurance

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	589		$	607		$	587		$	577		$	565		$	2,336
Net investment income		313			303			293			292			290			1,178
Net investment gains (losses)		3			6			(1	)		3			—			8
Insurance and investment product fees and other		—			—			—			—			1			1

Total revenues		905			916			879			872			856			3,523

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		766			1,545			1,313			735			664			4,257
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		95			106			103			97			93			399
Amortization of deferred acquisition costs and intangibles		26			34			25			27			26			112
Goodwill impairment		—			154			200			—			—			354
Interest expense		—			—			—			—			—			—

Total benefits and expenses		887			1,839			1,641			859			783			5,122

INCOME (LOSS) BEFORE INCOME TAXES		18			(923	)		(762	)		13			73			(1,599	)
Provision (benefit) for income taxes		6			(291	)		(234	)		5			27			(493	)

NET INCOME (LOSS)		12			(632	)		(528	)		8			46			(1,106	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(2	)		(3	)		—			(2	)		—			(5	)
Goodwill impairment, net		—			129			167			—			—			296

NET OPERATING INCOME (LOSS)	$	10		$	(506	)	$	(361	)	$	6		$	46		$	(815	)



Effective tax rate (operating income (loss))		35.3	%		34.6	%		35.7	%		37.1	%		37.0	%		34.9	%

SALES:
Individual Long-Term Care Insurance	$	10		$	17		$	28		$	24		$	21		$	90
Group Long-Term Care Insurance		1			6			1			2			1			10

Total Sales	$	11		$	23		$	29		$	26		$	22		$	100


RATIOS:
Loss Ratio⁽¹⁾		72.4	%		200.1	%		173.0	%		73.2	%		63.3	%		128.8	%
Gross Benefits Ratio⁽²⁾		130.2	%		254.4	%		224.1	%		127.3	%		117.5	%		182.2	%

⁽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 the benefits and other changes in policy reserves by net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income and Sales—U.S. Life Insurance Segment—Life Insurance

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	179		$	175		$	193		$	171		$	183		$	722
Net investment income		127			133			123			137			128			521
Net investment gains (losses)		3			—			10			23			1			34
Insurance and investment product fees and other		178			179			184			173			168			704

Total revenues		487			487			510			504			480			1,981

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		250			315			293			257			281			1,146
Interest credited		66			67			67			66			66			266
Acquisition and operating expenses, net of deferrals		51			45			52			45			50			192
Amortization of deferred acquisition costs and intangibles		30			36			46			32			26			140
Goodwill impairment		—			145			350			—			—			495
Interest expense		25			23			22			21			21			87

Total benefits and expenses		422			631			830			421			444			2,326

INCOME (LOSS) BEFORE INCOME TAXES		65			(144	)		(320	)		83			36			(345	)
Provision for income taxes		23			—			11			29			14			54

NET INCOME (LOSS)		42			(144	)		(331	)		54			22			(399	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(2	)		—			(6	)		(15	)		(1	)		(22	)
Goodwill impairment, net		—			145			350			—			—			495

NET OPERATING INCOME	$	40		$	1		$	13		$	39		$	21		$	74



Effective tax rate (operating income)		35.3	%		NM	⁽¹⁾		35.2	%		35.4	%		39.3	%		36.2	%

SALES:

Sales by Product:
Term Life	$	9		$	11		$	13		$	14		$	13		$	51
Universal Life		4			7			11			7			6			31
Linked-Benefits		4			5			4			5			2			16

Total Sales	$	17		$	23		$	28		$	26		$	21		$	98

⁽¹⁾	“NM” is defined as not meaningful for percentages greater than 200%.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income and Sales—U.S. Life Insurance Segment—Fixed Annuities

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	10		$	45		$	41		$	14		$	11		$	111
Net investment income		231			240			242			242			242			966
Net investment gains (losses)		(10	)		6			(8	)		(1	)		2			(1	)
Insurance and investment product fees and other		2			1			2			2			2			7

Total revenues		233			292			277			257			257			1,083

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		75			121			116			95			85			417
Interest credited		84			87			88			89			88			352
Acquisition and operating expenses, net of deferrals		17			17			18			14			18			67
Amortization of deferred acquisition costs and intangibles		17			28			20			22			23			93
Interest expense		—			—			—			—			—			—

Total benefits and expenses		193			253			242			220			214			929

INCOME BEFORE INCOME TAXES		40			39			35			37			43			154
Provision for income taxes		14			13			12			13			16			54

NET INCOME		26			26			23			24			27			100

ADJUSTMENT TO NET INCOME:
Net investment (gains) losses, net		5			(3	)		3			—			—			—

NET OPERATING INCOME	$	31		$	23		$	26		$	24		$	27		$	100



Effective tax rate (operating income)		35.3	%		33.3	%		34.8	%		35.5	%		36.2	%		35.0	%

SALES:
Sales by Product:
Single Premium Deferred Annuities	$	306		$	439		$	322		$	400		$	492		$	1,653
Single Premium Immediate Annuities		20			56			49			29			28			162

Total Sales	$	326		$	495		$	371		$	429		$	520		$	1,815

Corporate and Other Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Loss—Corporate and Other Division

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	180		$	172		$	186		$	200		$	176		$	734
Net investment income		47			56			50			56			53			215
Net investment gains (losses)		5			(18	)		(24	)		(3	)		(17	)		(62	)
Insurance and investment product fees and other		47			53			52			53			54			212

Total revenues		279			263			264			306			266			1,099

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		58			58			65			62			54			239
Interest credited		30			31			30			29			29			119
Acquisition and operating expenses, net of deferrals		138			136			138			155			135			564
Amortization of deferred acquisition costs and intangibles		32			42			36			40			42			160
Interest expense		84			88			84			91			98			361

Total benefits and expenses		342			355			353			377			358			1,443

LOSS BEFORE INCOME TAXES		(63	)		(92	)		(89	)		(71	)		(92	)		(344	)
Provision (benefit) for income taxes		(27	)		(174	)		2			(23	)		(50	)		(245	)

NET INCOME (LOSS)		(36	)		82			(91	)		(48	)		(42	)		(99	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(5	)		9			11			1			10			31
Tax impact from potential business portfolio changes		—			(108	)		—			—			—			(108	)

NET OPERATING LOSS	$	(41	)	$	(17	)	$	(80	)	$	(47	)	$	(32	)	$	(176	)



Effective tax rate (operating loss)		40.5	%		79.0	%		-10.5	%		33.0	%		57.5	%		40.5	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Three months ended March 31, 2015	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	180		$	—		$	—		$	180
Net investment income		22			31			(6	)		47
Net investment gains (losses)		—			(6	)		11			5
Insurance and investment product fees and other		—			49			(2	)		47

Total revenues		202			74			3			279

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		51			7			—			58
Interest credited		—			30			—			30
Acquisition and operating expenses, net of deferrals		117			19			2			138
Amortization of deferred acquisition costs and intangibles		26			5			1			32
Interest expense		9			—			75			84

Total benefits and expenses		203			61			78			342

INCOME (LOSS) BEFORE INCOME TAXES		(1	)		13			(75	)		(63	)
Provision (benefit) for income taxes		(1	)		3			(29	)		(27	)

NET INCOME (LOSS)		—			10			(46	)		(36	)

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net		—			1			(6	)		(5	)

NET OPERATING INCOME (LOSS)	$	—		$	11		$	(52	)	$	(41	)


Effective tax rate (operating income (loss))		35.0	%		26.7	%		38.1	%		40.5	%

Three months ended March 31, 2014	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	175		$	1		$	—		$	176
Net investment income		30			32			(9	)		53
Net investment gains (losses)		1			(13	)		(5	)		(17	)
Insurance and investment product fees and other		1			53			—			54

Total revenues		207			73			(14	)		266

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		46			8			—			54
Interest credited		—			29			—			29
Acquisition and operating expenses, net of deferrals		109			20			6			135
Amortization of deferred acquisition costs and intangibles		30			11			1			42
Interest expense		15			—			83			98

Total benefits and expenses		200			68			90			358

INCOME (LOSS) BEFORE INCOME TAXES		7			5			(104	)		(92	)
Benefit for income taxes		(1	)		—			(49	)		(50	)

NET INCOME (LOSS)		8			5			(55	)		(42	)

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net		(1	)		7			4			10

NET OPERATING INCOME (LOSS)	$	7		$	12		$	(51	)	$	(32	)


Effective tax rate (operating income (loss))		-22.3	%		25.1	%		47.8	%		57.5	%

⁽¹⁾	Includes inter-segment eliminations.

International Protection Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income (Loss) and Sales—International Protection Segment

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	180		$	172		$	185		$	199		$	175		$	731
Net investment income		22			22			27			22			30			101
Net investment gains (losses)		—			(1	)		—			—			1			—
Insurance and investment product fees and other		—			—			2			2			1			5

Total revenues		202			193			214			223			207			837

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		51			48			52			56			46			202
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		117			110			117			126			109			462
Amortization of deferred acquisition costs and intangibles		26			28			30			30			30			118
Interest expense		9			12			10			9			15			46

Total benefits and expenses		203			198			209			221			200			828

INCOME (LOSS) BEFORE INCOME TAXES		(1	)		(5	)		5			2			7			9
Provision (benefit) for income taxes		(1	)		(109	)		3			—			(1	)		(107	)

NET INCOME		—			104			2			2			8			116

ADJUSTMENTS TO NET INCOME:
Net investment (gains) losses, net		—			—			1			—			(1	)		—
Tax impact from potential business portfolio changes		—			(108	)		—			—			—			(108	)

NET OPERATING INCOME (LOSS)⁽¹⁾	$	—		$	(4	)	$	3		$	2		$	7		$	8



Effective tax rate (operating income (loss))		35.0	%		21.7	%		47.7	%		6.8	%		-22.3	%		5.8	%

Net Premiums Written
Northern Europe	$	82		$	85		$	94		$	104		$	115		$	398
Southern Europe		100			71			76			86			108			341
Structured Deals⁽²⁾		58			8			5			—			1			14
New Markets		6			8			7			15			11			41

Pre-Deposit Accounting Basis⁽³⁾		246			172			182			205			235			794

Deposit Accounting Adjustments		53			23			17			6			39			85

Total⁽⁴⁾	$	193		$	149		$	165		$	199		$	196		$	709



Loss Ratio		28	%		28	%		28	%		28	%		26	%		28	%

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⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Protection segment was zero for the three months ended March 31, 2015.

⁽²⁾	Structured deals represent in-force blocks of business acquired through reinsurance arrangements and ongoing reciprocal arrangements in place with certain clients.

⁽³⁾

This business has reinsurance agreements that do not qualify for risk transfer under GAAP. This analysis shows the net premiums written activity as if these reinsurance agreements, except for the reciprocal arrangements, were accounted for as reinsurance accounting (“pre-deposit accounting basis”) and not as deposit accounting. While this is a non-GAAP measure, management believes that “net premiums written on a pre-deposit accounting basis” represent an economic view of written premiums and enhances the understanding of the underlying performance of the business. However, net premiums written on a pre-deposit accounting basis is not a substitute for net premiums written determined in accordance with GAAP.

⁽⁴⁾	Net premiums written adjusted for foreign exchange as compared to the prior year period for the International Protection segment were $194 million for the three months ended March 31, 2015.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income (Pre-Deposit Accounting Basis)—International Protection Segment

(amounts in millions)


	1Q 2015
	Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis
REVENUES:
Premiums	$	180		$	54		$	234
Net investment income		22			(9	)		13
Net investment gains (losses)		—			—			—
Insurance and investment product fees and other		—			(1	)		(1	)

Total revenues		202			44			246

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		51			24			75
Interest credited		—			—			—
Acquisition and operating expenses, net of deferrals		117			17			134
Amortization of deferred acquisition costs and intangibles		26			6			32
Interest expense		9			(3	)		6

Total benefits and expenses		203			44			247

LOSS BEFORE INCOME TAXES		(1	)		—			(1	)
Benefit for income taxes		(1	)		—			(1	)

NET INCOME		—			—			—

ADJUSTMENT TO NET INCOME:
Net investment (gains) losses, net		—			—			—

NET OPERATING INCOME⁽¹⁾	$	—		$	—		$	—

Effective tax rate (operating income)		35.0	%					35.0	%

Other Metrics:
Premiums	$	180		$	54		$	234
Benefits and other changes in policy reserves		51			24			75
Commissions⁽²⁾		88			22			110

Margin before profit sharing		41			8			49
Profit share⁽²⁾		19			2			21

Underwriting profit⁽³⁾	$	22		$	6		$	28


Loss Ratio		28	%					32	%

Underwriting Margin⁽³⁾		12	%					12	%

Combined Ratio⁽⁴⁾		108	%					103	%

This page is provided as supplemental analysis related to the lifestyle protection insurance business. This business has reinsurance agreements that do not qualify for risk transfer under GAAP. This analysis shows the income statement activity as if these reinsurance agreements, except for the reciprocal arrangements, were accounted for as reinsurance accounting (“pre-deposit accounting basis”) and not as deposit accounting. There is no impact on net income (loss) available to Genworth Financial, Inc.’s common stockholders or to segment net operating income (loss). While ‘‘pre-deposit accounting basis” is a non-GAAP measure, management believes that it represents an economic view of the underlying performance of the business. However, pre-deposit accounting basis is not a substitute for income statement activity determined in accordance with GAAP.

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

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Protection segment was zero for the three months ended March 31, 2015.

⁽²⁾	Commissions include commissions which are included above in acquisition and operating expenses, net of deferrals, and amortization of DAC.

⁽³⁾	The underwriting margin is calculated as underwriting profit divided by net earned premiums.

⁽⁴⁾	The combined ratio is calculated as benefits and other changes in policy reserves, commissions (including amortization of DAC), profit share and other operating expenses divided by net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income (Loss) (Pre-Deposit Accounting Basis)—International Protection Segment

(amounts in millions)


	4Q 2014									3Q 2014									2Q 2014									1Q 2014									Total 2014
	Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis
REVENUES:
Premiums	$	172		$	30		$	202		$	185		$	34		$	219		$	199		$	41		$	240		$	175		$	43		$	218		$	731		$	148		$	879
Net investment income		22			(7	)		15			27			(10	)		17			22			(7	)		15			30			(10	)		20			101			(34	)		67
Net investment gains (losses)		(1	)		—			(1	)		—			—			—			—			—			—			1			—			1			—			—			—
Insurance and investment product fees and other		—			—			—			2			—			2			2			—			2			1			—			1			5			—			5

Total revenues		193			23			216			214			24			238			223			34			257			207			33			240			837			114			951

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		48			14			62			52			9			61			56			20			76			46			20			66			202			63			265
Interest credited		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		110			8			118			117			9			126			126			8			134			109			9			118			462			34			496
Amortization of deferred acquisition costs and intangibles		28			7			35			30			8			38			30			9			39			30			10			40			118			34			152
Interest expense		12			(6	)		6			10			(2	)		8			9			(3	)		6			15			(6	)		9			46			(17	)		29

Total benefits and expenses		198			23			221			209			24			233			221			34			255			200			33			233			828			114			942

INCOME (LOSS) BEFORE INCOME TAXES		(5	)		—			(5	)		5			—			5			2			—			2			7			—			7			9			—			9
Provision (benefit) for income taxes		(109	)		—			(109	)		3			—			3			—			—			—			(1	)		—			(1	)		(107	)		—			(107	)

NET INCOME		104			—			104			2			—			2			2			—			2			8			—			8			116			—			116

ADJUSTMENTS TO NET INCOME:
Net investment (gains) losses, net		—			—			—			1			—			1			—			—			—			(1	)		—			(1	)		—			—			—
Tax impact from potential business portfolio changes		(108	)		—			(108	)		—			—			—			—			—			—			—			—			—			(108	)		—			(108	)

NET OPERATING INCOME (LOSS)	$	(4	)	$	—		$	(4	)	$	3		$	—		$	3		$	2		$	—		$	2		$	7		$	—		$	7		$	8		$	—		$	8

Effective tax rate (operating income (loss))		21.7	%					21.7	%		47.7	%					47.7	%		6.8	%					6.8	%		-22.3	%					-22.3	%		5.8	%					5.8	%

Other Metrics:
Premiums	$	172		$	30		$	202		$	185		$	34		$	219		$	199		$	41		$	240		$	175		$	43		$	218		$	731		$	148		$	879
Benefits and other changes in policy reserves		48			14			62			52			9			61			56			20			76			46			20			66			202			63			265
Commissions⁽¹⁾		80			5			85			87			6			93			96			8			104			81			9			90			344			28			372

Margin before profit sharing		44			11			55			46			19			65			47			13			60			48			14			62			185			57			242
Profit share⁽¹⁾		18			10			28			22			10			32			18			10			28			19			9			28			77			39			116

Underwriting profit⁽²⁾	$	26		$	1		$	27		$	24		$	9		$	33		$	29		$	3		$	32		$	29		$	5		$	34		$	108		$	18		$	126


Loss Ratio		28	%					31	%		28	%					28	%		28	%					32	%		26	%					30	%		28	%					30	%

Underwriting Margin⁽²⁾		15	%					13	%		13	%					15	%		15	%					13	%		17	%					16	%		15	%					14	%

Combined Ratio⁽³⁾		108	%					106	%		108	%					103	%		107	%					104	%		106	%					103	%		107	%					104	%

This page is provided as supplemental analysis related to the lifestyle protection insurance business. This business has reinsurance agreements that do not qualify for risk transfer under GAAP. This analysis shows the income statement activity as if these reinsurance agreements, except for the reciprocal arrangements, were accounted for as reinsurance accounting (“pre-deposit accounting basis”) and not as deposit accounting. There is no impact on net income available to Genworth Financial, Inc.’s common stockholders or to segment net operating income. While ‘‘pre-deposit accounting basis” is a non-GAAP measure, management believes that it represents an economic view of the underlying performance of the business. However, pre-deposit accounting basis is not a substitute for income statement activity determined in accordance with GAAP.

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

⁽¹⁾	Commissions include commissions which are included above in acquisition and operating expenses, net of deferrals, and amortization of DAC.

⁽²⁾	The underwriting margin is calculated as underwriting profit divided by net earned premiums.

⁽³⁾	The combined ratio is calculated as benefits and other changes in policy reserves, commissions (including amortization of DAC), profit share and other operating expenses divided by net earned premiums.

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Income—Runoff Segment

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	1		$	1		$	1		$	3
Net investment income		31			32			32			33			32			129
Net investment gains (losses)		(6	)		(23	)		(33	)		3			(13	)		(66	)
Insurance and investment product fees and other		49			51			53			52			53			209

Total revenues		74			60			53			89			73			275

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		7			10			13			6			8			37
Interest credited		30			31			30			29			29			119
Acquisition and operating expenses, net of deferrals		19			22			22			20			20			84
Amortization of deferred acquisition costs and intangibles		5			13			5			10			11			39
Interest expense		—			—			—			1			—			1

Total benefits and expenses		61			76			70			66			68			280

INCOME (LOSS) BEFORE INCOME TAXES		13			(16	)		(17	)		23			5			(5	)
Provision (benefit) for income taxes		3			(19	)		(5	)		5			—			(19	)

NET INCOME (LOSS)		10			3			(12	)		18			5			14

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net		1			13			17			(3	)		7			34

NET OPERATING INCOME	$	11		$	16		$	5		$	15		$	12		$	48


Effective tax rate (operating income)		26.7	%		NM	⁽¹⁾		48.2	%		16.1	%		25.1	%		-1.0	%

⁽¹⁾	“NM” is defined as not meaningful for percentages greater than 200%.

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		(6	)		2			(9	)		1			(9	)		(15	)
Net investment gains (losses)		11			6			9			(6	)		(5	)		4
Insurance and investment product fees and other		(2	)		2			(3	)		(1	)		—			(2	)

Total revenues		3			10			(3	)		(6	)		(14	)		(13	)

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			—			—			—			—			—
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		2			4			(1	)		9			6			18
Amortization of deferred acquisition costs and intangibles		1			1			1			—			1			3
Interest expense		75			76			74			81			83			314

Total benefits and expenses		78			81			74			90			90			335

LOSS BEFORE INCOME TAXES		(75	)		(71	)		(77	)		(96	)		(104	)		(348	)
Provision (benefit) for income taxes		(29	)		(46	)		4			(28	)		(49	)		(119	)

NET LOSS		(46	)		(25	)		(81	)		(68	)		(55	)		(229	)

ADJUSTMENT TO NET LOSS:
Net investment (gains) losses, net		(6	)		(4	)		(7	)		4			4			(3	)

NET OPERATING LOSS	$	(52	)	$	(29	)	$	(88	)	$	(64	)	$	(51	)	$	(232	)


Effective tax rate (operating loss)		38.1	%		61.7	%		-0.9	%		28.8	%		47.8	%		34.0	%

⁽¹⁾	Includes inter-segment eliminations.

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Investments Summary

(amounts in millions)


		March 31, 2015					December 31, 2014					September 30, 2014					June 30, 2014					March 31, 2014
		Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total
Composition of Investment Portfolio
Fixed maturity securities:
Investment grade:
Public fixed maturity securities		$	37,115		47	%	$	36,684		47	%	$	36,587		48	%	$	36,726		48	%	$	35,526		48	%
Private fixed maturity securities			11,494		14			11,630		15			11,493		15			11,608		15			11,125		15
Residential mortgage-backed securities⁽¹⁾			5,022		6			5,094		7			5,003		7			5,057		7			4,945		7
Commercial mortgage-backed securities			2,548		3			2,491		3			2,517		3			2,630		3			2,656		4
Other asset-backed securities			3,767		5			3,669		5			3,770		5			3,700		5			3,343		4
Tax-exempt			360		1			361		—			356		—			353		—			317		—
Non-investment grade fixed maturity securities			2,636		3			2,518		3			2,591		4			2,286		3			2,332		3
Equity securities:
Common stocks and mutual funds			141		—			194		—			221		—			227		—			260		—
Preferred stocks			165		—			88		—			92		—			93		—			89		—
Commercial mortgage loans			6,149		8			6,100		8			6,077		8			5,986		8			5,894		8
Restricted commercial mortgage loans related to securitization entities			188		—			201		—			209		—			217		—			227		—
Policy loans			1,506		2			1,501		2			1,512		2			1,514		2			1,438		2
Cash, cash equivalents and short-term investments			5,570		7			5,218		7			3,655		5			4,220		5			4,492		6
Securities lending			323		1			289		1			339		—			277		—			261		—
Other invested assets:	Limited partnerships		215		—			252		—			262		—			263		1			267		—
	Derivatives:
	Long-term care (LTC) forward starting swap—cash flow		948		1			639		1			252		—			197		—			137		—
	Other cash flow		9		—			6		—			10		—			20		—			30		—
	Equity index options—non-qualified		15		—			17		—			11		—			4		—			11		—
	Other non-qualified		512		1			470		—			391		1			395		1			352		1
	Trading portfolio		218		—			241		—			226		—			226		—			247		—
	Counterparty collateral		—		—			—		—			521		1			417		1			355		1
	Restricted other invested assets related to securitization entities		411		1			411		1			404		1			404		1			398		1
	Other		71		—			82		—			91		—			82		—			83		—

Total invested assets and cash		$	79,383		100	%	$	78,156		100	%	$	76,590		100	%	$	76,902		100	%	$	74,785		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	15,647		33	%	$	15,743		34	%	$	15,459		33	%	$	15,552		33	%	$	15,338		34	%
AA			4,955		11			4,844		10			4,957		11			5,056		11			4,759		10
A			14,050		30			13,887		30			13,823		30			13,470		29			12,920		29
BBB			10,814		23			10,612		23			10,753		23			11,162		24			10,847		24
BB			1,396		3			1,362		3			1,388		3			1,232		3			1,251		3
B			76		—			76		—			78		—			82		—			87		—
CCC and lower			108		—			112		—			113		—			113		—			114		—

Total public fixed maturity securities		$	47,046		100	%	$	46,636		100	%	$	46,571		100	%	$	46,667		100	%	$	45,316		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	1,528		10	%	$	1,597		10	%	$	1,585		10	%	$	1,636		10	%	$	1,554		10	%
AA			2,040		13			2,104		14			1,902		12			1,800		12			1,661		11
A			5,140		32			4,928		31			5,034		32			5,027		32			4,593		31
BBB			6,132		39			6,214		39			6,213		39			6,371		40			6,240		42
BB			912		5			794		5			838		5			723		5			740		5
B			126		1			95		1			95		1			57		—			57		—
CCC and lower			18		—			79		—			79		1			79		1			83		1

Total private fixed maturity securities		$	15,896		100	%	$	15,811		100	%	$	15,746		100	%	$	15,693		100	%	$	14,928		100	%

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

⁽²⁾	Nationally Recognized Statistical Rating Organizations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Fixed Maturity Securities Summary

(amounts in millions)


	March 31, 2015					December 31, 2014					September 30, 2014					June 30, 2014					March 31, 2014
	Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total
Fixed Maturity Securities—Security Sector:
U.S. government, agencies and government-sponsored enterprises	$	6,132		10	%	$	6,000		10	%	$	5,642		9	%	$	5,483		9	%	$	5,214		9	%
Tax-exempt		361		1			362		1			356		1			353		1			317		—
Foreign government		2,008		3			2,106		3			2,035		3			2,132		3			2,153		4
U.S. corporate		27,900		44			27,200		44			26,956		43			26,847		43			26,060		43
Foreign corporate		14,886		24			15,132		24			15,637		25			15,749		25			15,141		25
Residential mortgage-backed securities		5,163		8			5,240		8			5,155		8			5,212		8			5,102		8
Commercial mortgage-backed securities		2,690		4			2,702		4			2,728		5			2,845		5			2,881		5
Other asset-backed securities		3,802		6			3,705		6			3,808		6			3,739		6			3,376		6

Total fixed maturity securities	$	62,942		100	%	$	62,447		100	%	$	62,317		100	%	$	62,360		100	%	$	60,244		100	%

Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	7,777		19	%	$	7,687		19	%	$	7,771		19	%	$	7,908		19	%	$	7,506		19	%
Utilities and energy		10,017		25			9,931		25			9,901		25			9,890		24			9,494		24
Consumer—non-cyclical		4,769		12			4,773		12			4,778		12			4,825		12			4,837		12
Consumer—cyclical		2,419		6			2,427		6			2,425		6			2,408		6			2,337		6
Capital goods		2,397		6			2,402		6			2,364		6			2,402		6			2,335		6
Industrial		2,960		7			2,906		7			2,948		7			2,885		7			2,734		7
Technology and communications		3,174		8			3,113		8			3,142		8			3,066		8			2,978		8
Transportation		1,761		4			1,687		4			1,729		4			1,702		4			1,653		4
Other		5,281		13			5,347		13			5,411		13			5,699		14			5,469		14

Subtotal		40,555		100	%		40,273		100	%		40,469		100	%		40,785		100	%		39,343		100	%

Non-Investment Grade:
Finance and insurance		454		20	%		465		23	%		483		23	%		306		17	%		332		18	%
Utilities and energy		448		20			339		17			389		18			338		19			335		18
Consumer—non-cyclical		268		12			229		11			211		10			217		12			229		12
Consumer—cyclical		109		5			83		4			64		3			55		3			60		3
Capital goods		255		11			232		11			291		14			297		16			291		15
Industrial		271		12			296		14			265		12			252		14			254		14
Technology and communications		346		16			336		16			358		17			318		17			330		18
Transportation		18		1			19		1			20		1			16		1			15		1
Other		62		3			60		3			43		2			12		1			12		1

Subtotal		2,231		100	%		2,059		100	%		2,124		100	%		1,811		100	%		1,858		100	%

Total	$	42,786		100	%	$	42,332		100	%	$	42,593		100	%	$	42,596		100	%	$	41,201		100	%

Fixed Maturity Securities—Contractual Maturity Dates:

Due in one year or less	$	2,077		3	%	$	2,326		4	%	$	2,640		4	%	$	2,784		4	%	$	3,118		5	%
Due after one year through five years		11,552		18			11,410		19			11,009		18			10,701		17			10,257		17
Due after five years through ten years		12,343		20			12,496		20			13,113		21			13,401		22			12,915		21
Due after ten years		25,315		41			24,568		39			23,864		38			23,678		38			22,595		38

Subtotal		51,287		82			50,800		82			50,626		81			50,564		81			48,885		81
Mortgage and asset-backed securities		11,655		18			11,647		18			11,691		19			11,796		19			11,359		19

Total fixed maturity securities	$	62,942		100	%	$	62,447		100	%	$	62,317		100	%	$	62,360		100	%	$	60,244		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

General Account GAAP Net Investment Income Yields

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
GAAP Net Investment Income
Fixed maturity securities—taxable	$	639		$	666		$	651		$	666		$	648		$	2,631
Fixed maturity securities—non-taxable		3			3			3			3			3			12
Commercial mortgage loans		85			87			82			81			83			333
Restricted commercial mortgage loans related to securitization entities		4			3			3			4			4			14
Equity securities		4			3			3			4			4			14
Other invested assets		48			37			36			26			39			138
Limited partnerships		7			2			10			13			11			36
Restricted other invested assets related to securitization entities		1			2			1			1			1			5
Policy loans		33			34			32			32			31			129
Cash, cash equivalents and short-term investments		3			5			7			7			5			24

Gross investment income before expenses and fees		827			842			828			837			829			3,336
Expenses and fees		(24	)		(23	)		(23	)		(24	)		(24	)		(94	)

Net investment income	$	803		$	819		$	805		$	813		$	805		$	3,242

Annualized Yields
Fixed maturity securities—taxable		4.5	%		4.7	%		4.6	%		4.7	%		4.6	%		4.6	%
Fixed maturity securities—non-taxable		3.5	%		3.5	%		3.4	%		3.5	%		3.7	%		3.5	%
Commercial mortgage loans		5.6	%		5.7	%		5.4	%		5.5	%		5.6	%		5.6	%
Restricted commercial mortgage loans related to securitization entities		8.2	%		5.8	%		6.6	%		6.7	%		7.0	%		6.6	%
Equity securities		6.0	%		4.5	%		4.2	%		5.3	%		5.1	%		4.8	%
Other invested assets		88.1	%		62.4	%		58.6	%		40.5	%		56.9	%		54.6	%
Limited partnerships⁽¹⁾		12.0	%		3.1	%		15.3	%		19.6	%		16.1	%		13.6	%
Restricted other invested assets related to securitization entities		1.0	%		2.1	%		1.0	%		1.0	%		1.0	%		1.3	%
Policy loans		8.8	%		9.0	%		8.5	%		8.7	%		8.6	%		8.7	%
Cash, cash equivalents and short-term investments		0.2	%		0.5	%		0.7	%		0.6	%		0.4	%		0.5	%

Gross investment income before expenses and fees		4.6	%		4.7	%		4.7	%		4.7	%		4.7	%		4.7	%
Expenses and fees		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%

Net investment income		4.5	%		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%

Yields are based on net investment income as reported under GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity and equity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability. See page 63 herein for average invested assets and cash used in the yield calculation.

⁽¹⁾	Limited partnership investments are equity-based and do not have fixed returns by period.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Net Investment Gains (Losses), Net—Detail⁽¹⁾

(amounts in millions)


	2015			2014
	1Q			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	—		$	1		$	5		$	(6	)	$	(9	)	$	(9	)
U.S. government, agencies and government-sponsored enterprises		1			1			—			2			—			3
Foreign corporate		(5	)		1			2			13			(2	)		14
Foreign government		—			1			—			—			—			1
Tax-exempt		—			—			—			—			(1	)		(1	)
Mortgage-backed securities		—			—			(1	)		—			—			(1	)
Equity securities		5			1			2			6			1			10
Foreign exchange		1			—			—			1			—			1

Total net realized gains (losses) on available-for-sale securities		2			5			8			16			(11	)		18

Impairments:
Alt-A residential mortgage-backed securities		—			—			(1	)		—			—			(1	)
Financial hybrid securities		—			—			(3	)		—			—			(3	)
Commercial mortgage loans		(2	)		—			—			(1	)		(1	)		(2	)

Total impairments		(2	)		—			(4	)		(1	)		(1	)		(6	)

Net unrealized gains (losses) on trading securities		4			10			3			5			8			26
Derivative instruments		(21	)		(24	)		(25	)		(4	)		(14	)		(67	)
Limited partnerships		—			—			—			(1	)		—			(1	)
Commercial mortgage loans held-for-sale market valuation allowance		1			2			2			2			2			8
Restricted commercial mortgage loans and other invested assets related to securitization entities		5			—			—			—			—			—
Contingent purchase price valuation change		—			—			(1	)		—			—			(1	)
Net gains (losses) related to securitization entities		—			1			(1	)		6			4			10

Net investment gains (losses), net of taxes		(11	)		(6	)		(18	)		23			(12	)		(13	)
Adjustment for DAC and other intangible amortization and certain benefit reserves, net of taxes		4			1			6			1			1			9
Adjustment for net investment (gains) losses attributable to noncontrolling interests, net of taxes		5			1			2			(4	)		1			—

Net investment gains (losses), net	$	(2	)	$	(4	)	$	(10	)	$	20		$	(10	)	$	(4	)

⁽¹⁾	All adjustments for income taxes assume a 35% tax rate.

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	(1,274	)	$	(1,244	)	$	(276	)	$	676		$	641
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,288		$	11,532		$	11,770		$	11,833		$	11,699
GAAP Basis ROE^(1)/(2)		-11.3	%		-10.8	%		-2.3	%		5.7	%		5.5	%

Operating ROE
Net operating income (loss) for the twelve months ended⁽¹⁾	$	(419	)	$	(381	)	$	228		$	684		$	659
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,288		$	11,532		$	11,770		$	11,833		$	11,699
Operating ROE^(1)/(2)		-3.7	%		-3.3	%		1.9	%		5.8	%		5.6	%

Quarterly Average ROE	Three months ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	154		$	(760	)	$	(844	)	$	176		$	184
Average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	10,555		$	10,854		$	11,651		$	12,051		$	11,942
Annualized GAAP Quarterly Basis ROE^(3)/(4)		5.8	%		-28.0	%		-29.0	%		5.8	%		6.2	%

Operating ROE
Net operating income (loss) for the period ended⁽³⁾	$	156		$	(416	)	$	(317	)	$	158		$	194
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	10,555		$	10,854		$	11,651		$	12,051		$	11,942
Annualized Operating Quarterly Basis ROE^(3)/(4)		5.9	%		-15.3	%		-10.9	%		5.2	%		6.5	%

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 net 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 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 net operating income (loss) from page 9 herein.

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

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Reconciliation of Core Yield


		2015			2014
	(Assets—amounts in billions)	1Q			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	79.4		$	78.2		$	76.6		$	76.9		$	74.8		$	78.2
	Subtract:
	Securities lending		0.3			0.3			0.3			0.3			0.3			0.3
	Unrealized gains (losses)		7.9			6.7			5.4			5.6			4.3			6.7
	Derivative counterparty collateral		—			—			0.5			0.4			0.4			—

	Adjusted end of period invested assets and cash	$	71.2		$	71.2		$	70.4		$	70.6		$	69.8		$	71.2

(A)	Average Invested Assets and Cash Used in Reported Yield Calculation	$	71.2		$	70.8		$	70.5		$	70.2		$	69.7		$	70.3
	Subtract:
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		0.2			0.2			0.2			0.2			0.2			0.2

(B)	Average Invested Assets and Cash Used in Core Yield Calculation		71.0			70.6			70.3			70.0			69.5			70.1
	Subtract:
	Portfolios supporting floating products and non-recourse funding obligations⁽²⁾		3.7			3.9			4.0			4.2			4.3			4.1

(C)	Average Invested Assets and Cash Used in Core Yield (excl. Floating and Non-Recourse Funding) Calculation	$	67.3		$	66.7		$	66.3		$	65.8		$	65.2		$	66.0

	(Income—amounts in millions)

(D)	Reported—Net Investment Income	$	803		$	819		$	805		$	813		$	805		$	3,242
	Subtract:
	Bond calls and commercial mortgage loan prepayments		14			18			17			7			10			52
	Reinsurance⁽³⁾		15			14			19			13			22			68
	Other non-core items⁽⁴⁾		12			12			(18	)		12			5			11
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		3			2			3			3			3			11

(E)	Core Net Investment Income		759			773			784			778			765			3,100
	Subtract:
	Investment income from portfolios supporting floating products and non-recourse funding obligations⁽²⁾		20			21			22			23			21			87

(F)	Core Net Investment Income (excl. Floating and Non-Recourse Funding)	$	739		$	752		$	762		$	755		$	744		$	3,013


(D) / (A)	Reported Yield		4.51	%		4.63	%		4.57	%		4.63	%		4.62	%		4.61	%
(E) / (B)	Core Yield		4.28	%		4.38	%		4.46	%		4.45	%		4.40	%		4.42	%
(F) / (C)	Core Yield (excl. Floating and Non-Recourse Funding)		4.39	%		4.51	%		4.60	%		4.59	%		4.56	%		4.57	%

Notes:

Columns may not add due to rounding. 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 GAAP.

⁽¹⁾	Represents the incremental assets and investment income related to restricted commercial mortgage loans and other invested assets.

⁽²⁾	Floating products refer to institutional products and the non-recourse funding obligations that support certain term and universal life insurance reserves in the company’s life insurance business.

⁽³⁾	Represents imputed investment income related to reinsurance agreements in the lifestyle protection insurance business.

⁽⁴⁾	Includes cost basis adjustments on structured securities, preferred stock income and various other immaterial items.

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

Financial Strength Ratings As Of April 27, 2015


Company	Standard & Poor’s Financial Services LLC (S&P)	Moody’s Investors Service, Inc. (Moody’s)	A.M. Best Company, Inc. (A.M. Best)
Genworth Financial Mortgage Insurance Pty. Limited (Australia)⁽¹⁾	A+	A3	Not rated
Genworth Financial Mortgage Insurance Limited (Europe)	BB-	Not rated	Not rated
Genworth Financial Mortgage Insurance Company Canada⁽²⁾	A+	Not rated	Not rated
Genworth Seguros de Credito a la Vivienda S.A. de C.V.⁽³⁾	Not rated	Aa3.mx	Not rated
Genworth Mortgage Insurance Corporation	BB-	Ba1	Not rated
Genworth Residential Mortgage Insurance Corporation of NC	BB-	Ba1	Not rated
Genworth Life Insurance Company	BBB-	Baa1	A-
Genworth Life and Annuity Insurance Company	BBB-	Baa1	A-
Genworth Life Insurance Company of New York	BBB-	Baa1	A-
Financial Assurance Company Limited	A-	Not rated	Not rated
Financial Insurance Company Limited	A-	Not rated	Not rated

⁽¹⁾	Genworth Financial Mortgage Insurance Pty. Limited (Australia) is also rated “A+” by Fitch Rating Service (Fitch).

⁽²⁾	Genworth Financial Mortgage Insurance Company Canada is also rated “AA” by Dominion Bond Rating Service (DBRS).

⁽³⁾	Genworth Seguros de Credito a la Vivienda S.A. de C.V. is also rated “Baa3” by Moody’s on a Global Scale Insurance financial strength basis.

The S&P, Moody’s, A.M. Best, Fitch and DBRS ratings included 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 insurers rated “A” (Strong), “BBB” (Good) or “BB” (Marginal) have strong, good or marginal financial security characteristics, respectively. The “A,” “BBB” and “BB” ranges are the third-, fourth- and fifth-highest of nine financial strength rating ranges assigned by S&P, which range from “AAA” to “R.” A plus (+) or minus (-) shows relative standing within a major rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “A+,” “A-,” “BBB-” and “BB-” ratings are the fifth-, seventh-, tenth- and thirteenth-highest of S&P’s 21 ratings categories.

Moody’s states that insurance companies rated “A” (Good) offer good financial security, that insurance companies rated “Baa” (Adequate) offer adequate financial security and that insurance companies rated “Ba” (Questionable) offer questionable financial security. The “A” (Good), “Baa” (Adequate) and “Ba” (Questionable) ranges are the third-, fourth- and fifth-highest, respectively, of nine financial strength rating ranges assigned by Moody’s, which range from “Aaa” to “C.” Numeric modifiers are used to refer to the ranking within the group, with 1 being the highest and 3 being the lowest. These modifiers are not added to ratings in the “Aaa” category or to ratings below the “Caa” category. Accordingly, the “A3,” “Baa1” and “Ba1” ratings are the seventh-, eighth- and eleventh-highest, respectively, of Moody’s 21 ratings categories. Issuers or issues rated “Aa.mx” demonstrate very strong creditworthiness relative to other issuers in Mexico.

A.M. Best states that the “A-” (Excellent) rating is assigned to those companies that have, in its opinion, an excellent ability to meet their ongoing insurance obligations. The “A-” (Excellent) rating is the fourth-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 fifth-highest of Fitch’s 21 ratings categories.

DBRS states that long-term obligations rated “AA” are of superior credit quality. The capacity for the payment of financial obligations is considered high and unlikely to be significantly vulnerable to future events. Credit quality differs from “AAA” only to a small degree.

S&P, Moody’s, A.M. Best, Fitch and DBRS review their ratings periodically and the company cannot assure you that it will maintain the current ratings in the future. Other agencies may also rate the company or its insurance subsidiaries on a solicited or an unsolicited basis.

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Form 8-K GENWORTH FINANCIAL INC For: Apr 28

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