Form 8-K GENWORTH FINANCIAL INC For: Aug 04

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August 4, 2015 5:16 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

August 4, 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 August 4, 2015, Genworth Financial, Inc. issued (1) a press release announcing its financial results for the quarter ended June 30, 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 June 30, 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 August 4, 2015.

99.2		Financial Supplement for the quarter ended June 30, 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: August 4, 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 August 4, 2015.

99.2		Financial Supplement for the quarter ended June 30, 2015.

Exhibit 99.1

LOGO

Genworth Financial Announces Second Quarter 2015 Results

Net Operating Earnings Per Share Of $0.24; Net Loss Per Share Of $0.39 Includes Loss From Planned Sale Of Lifestyle Protection Insurance Business

•

Strategic Actions Taken Expected To Generate In Excess Of $600 Million Of Proceeds In 2015

•

Reduced Stake In Genworth Australia Mortgage Insurance By 14 Percent; Retained Majority Share

•

In Exclusive Negotiations For Sale of Lifestyle Protection Insurance Business

•

Transactions Executed To Generate Approximately $500 Million Of Additional PMIERs Capital Credit

•

Cash Expense Savings Of Approximately $30 Million Expected In 2015; $40 To $50 Million In 2016

•

Sequential Results Reflect Good Loss Ratios In Global Mortgage Insurance Division And Unfavorable Impact From Mortality In U.S. Life Insurance Division

Richmond, VA (August 4, 2015) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the period ended June 30, 2015. The company reported a net loss¹ of $193 million, or $0.39 per diluted share, compared with net income of $176 million, or $0.35 per diluted share, in the second quarter of 2014. The net loss in the quarter includes an after-tax loss of $306 million, or $0.61 per diluted share, related to the planned sale of the lifestyle protection insurance business. Net operating income² for the second quarter of 2015 was $119 million, or $0.24 per diluted share, compared with net operating income of $154 million, or $0.31 per diluted share, in the second quarter of 2014.

Strategic Update

In May 2015, the company sold 92.3 million shares, or approximately 14 percent, in Genworth Mortgage Insurance Australia Limited. On July 22, 2015, the company announced it had entered into exclusive negotiations with AXA S.A. after receiving an irrevocable offer to purchase its lifestyle protection insurance business, which has been previously identified as non-core. These transactions increase the financial flexibility and strength of the company as it advances the ability to support compliance with the private mortgage insurer eligibility requirements (PMIERs) and reduce debt levels.

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.

As of June 30, 2015, the company believes its U.S. mortgage insurance business would be compliant with the PMIERs capital requirements when including a series of transactions that have been executed to generate approximately $500 million of additional PMIERs capital credit and the completion of a planned internal restructuring. The transactions include:

•

Execution of two excess of loss reinsurance transactions with a panel of reinsurers, both effective as of July 1, 2015, that are expected to provide approximately $300 million of PMIERs capital credit as of December 31, 2015. One of the transactions has been approved by the government-sponsored enterprises (GSEs) while the second is pending final approval from the GSEs.

•

An intercompany sale of the U.S. mortgage insurance business’ ownership interest in affiliated preferred securities in exchange for approximately $200 million of cash from Genworth Holdings, Inc. (proceeds used were primarily from the Australia mortgage insurance sell down) that resulted in a corresponding increase in available assets under PMIERs. The transaction did not affect statutory risk-to-capital ratios in the quarter, and the cash from Genworth Holdings, Inc. was transferred in July 2015.

The company will look to execute future capital transactions over the remainder of the year that provide a prudent level of financial flexibility in excess of the PMIERs capital requirements, including additional reinsurance transactions and contributions of holding company cash.

In connection with the company’s plan to target cash savings in excess of $100 million pre-tax by the end of 2016, actions were taken in the first half of 2015 to reduce headcount and program spend that are expected to reduce cash expenses by approximately $30 million pre-tax in 2015 and $40 to $50 million pre-tax in 2016.

“We are encouraged with our second quarter results in the Global Mortgage Insurance Division and remain focused on initiatives aimed at strengthening and improving U.S. Life Insurance Division results,” said Tom McInerney, President and CEO. “We are making steady progress on our strategy to strengthen and simplify our businesses and increase financial flexibility as evidenced by the two sale transactions we announced recently in addition to the significant progress made towards complying with PMIERs.”

Operating Results


Consolidated Net Income (Loss) & Net Operating Income
	Three months ended June 30 (Unaudited)
	2015						2014
(Amounts in millions, except per share)	Total			Per diluted share			Total		Per diluted share		Total% change
Net income (loss) available to Genworth’s common stockholders	$	(193	)	$	(0.39	)	$	176	$	0.35		NM	³
Net operating income	$	119		$	0.24		$	154	$	0.31		(23	)%
Weighted average diluted shares		499.3						503.6


	Three months ended June 30 (Unaudited)
	2015		2014
Book value per share	$	27.52	$	32.68
Book value per share, excluding accumulated other comprehensive income (loss)	$	20.87	$	24.31

Net investment gains, net of taxes and other adjustments, were $4 million in the quarter, compared to $20 million in the prior year. Net investment income increased to $793 million, compared to $781 million in the prior quarter primarily from favorable limited partnership performance, partially offset by prepayment speed adjustments related to residential mortgage-backed securities. The reported yield for the current quarter was 4.52 percent. The core yield² was 4.45 percent, up from the prior quarter. There were no impairments in the quarter.

Beginning in the second quarter of 2015, the lifestyle protection insurance business is being separately reported as discontinued operations and all prior periods herein have been re-presented. During the quarter, the company recognized an after-tax loss of $306 million related to the planned sale of this business and an $8 million loss from discontinued operations primarily related to a prior period tax true-up. The company expects the transaction to close by the end of 2015, subject to customary closing conditions, including requisite regulatory approvals.

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


Net Operating Income (Loss)
(Amounts in millions)	Q2 15			Q1 15			Q2 14
Global Mortgage Insurance Division	$	110		$	116		$	136
U.S. Life Insurance Division		57			81			69
Corporate and Other Division		(48	)		(43	)		(51	)

Total Net Operating Income (Loss)	$	119		$	154		$	154

Net operating income (loss) represents net operating income (loss) from continuing operations excluding 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.

³	The company defines “NM” as not meaningful for increases or decreases greater than 200 percent.

Unless specifically noted in the discussion of results for the International Mortgage Insurance segment, 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 second quarter of 2015 was an unfavorable impact of $2 million versus the prior quarter and an unfavorable impact of $11 million versus the prior year.

Global Mortgage Insurance Division

The Global Mortgage Insurance Division had net operating income of $110 million, compared with $116 million in the prior quarter and $136 million a year ago.


Global Mortgage Insurance Division
Net Operating Income (Loss)
(Amounts in millions)	Q2 15			Q1 15			Q2 14
International Mortgage Insurance
Canada	$	37		$	40		$	47
Australia		29			30			57
Other Countries		(5	)		(6	)		(7	)

Total International Mortgage Insurance		61			64			97
U.S. Mortgage Insurance		49			52			39

Total Global Mortgage Insurance	$	110		$	116		$	136


Sales
(Amounts in billions)	Q2 15		Q1 15		Q2 14
International Mortgage Insurance
Flow
Canada	$	5.4	$	3.3	$	5.0
Australia		6.5		5.8		7.9
Other Countries		0.5		0.4		0.5
Bulk
Canada		3.3		5.0		7.5
Australia		1.7		—		—
Other Countries		—		0.2		—
U.S. Mortgage Insurance
Primary Flow		8.2		6.3		6.1
Primary Bulk		—		—		—

Canada Mortgage Insurance

Canada reported net operating income of $37 million versus $40 million in the prior quarter and $47 million in the prior year. The loss ratio in the quarter was 17 percent, down five points from the prior quarter from a modest decrease in new delinquencies, net of cures, and up five points from the prior year from a modest increase in new delinquencies, net of cures, and a higher average reserve per delinquency related to regional mix. Results included higher expenses versus the prior quarter and unfavorable foreign exchange versus the prior year of $6 million. Flow new insurance written (NIW) was up 67 percent⁴ sequentially from a seasonally larger origination market and up 22 percent⁴ year over year primarily from an increase in market penetration. In addition, the company completed several bulk transactions in the quarter of approximately $3.3 billion in total, consisting of low loan-to-value prime loans, reflecting its selective participation in this market.

⁴	Percent change excludes the impact of foreign exchange.

Australia Mortgage Insurance

Australia reported net operating income of $29 million versus $30 million in the prior quarter and $57 million in the prior year. The loss ratio in the quarter was 28 percent, up 13 points sequentially from higher new delinquencies, partially offset by a higher cure rate and up five points from the prior year. In the prior quarter, the company accrued a $7 million pre-tax receivable for 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 16 percent sequentially primarily reflecting normal seasonal variation with most of the increase related to Queensland and Western Australia and cures were up 16 percent sequentially reflecting normal seasonal variation. Results versus the prior year were also impacted by less favorable tax benefits of $14 million, an unfavorable $11 million related to the timing of the minority IPO of 33.8 percent of the Australia mortgage insurance (MI) business in May 2014 and the further sell down of approximately 14 percent in May 2015 and unfavorable foreign exchange of $5 million. Flow NIW was up 16 percent⁴ sequentially primarily from seasonal variation and down three percent⁴ year over year.

Other Countries Mortgage Insurance

Other Countries had a net operating loss of $5 million, compared to a net operating loss of $6 million in the prior quarter and a net operating loss of $7 million in the prior year.

U.S. Mortgage Insurance

U.S. mortgage insurance net operating income was $49 million, compared with $52 million in the prior quarter and $39 million in the prior year. The loss ratio in the current quarter was 33 percent, flat sequentially reflecting lower new delinquencies offset by less favorable net cures and aging of existing delinquencies. New flow delinquencies decreased approximately five percent from the prior quarter and decreased approximately 14 percent from the prior year, reflecting the continued burn through of delinquencies from the 2005 to 2008 book years. Results versus the prior quarter reflected lower net investment income.

Flow NIW of $8.2 billion increased 30 percent from the prior quarter from a seasonally larger mortgage insurance market and increased 34 percent versus the prior year primarily from a larger purchase originations market and higher refinance activity. During the second quarter, the company decreased 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

The U.S. Life Insurance Division had net operating income of $57 million, compared with $81 million in the prior quarter and $69 million a year ago.


U.S. Life Insurance Division
Net Operating Income
(Amounts in millions)	Q2 15		Q1 15		Q2 14
U.S. Life Insurance
Long Term Care Insurance	$	10	$	10	$	6
Life Insurance		22		40		39
Fixed Annuities		25		31		24

Total U.S. Life Insurance		57		81		69

Total U.S. Life Insurance	$	57	$	81	$	69


Sales
(Amounts in millions)	Q2 15		Q1 15		Q2 14
U.S. Life Insurance
Long Term Care Insurance
Individual	$	8	$	10	$	24
Group		1		1		2
Life Insurance
Term Life		9		9		14
Universal Life		4		4		7
Linked Benefits		2		4		5
Fixed Annuities		224		326		429

Long Term Care Insurance

Long term care insurance (LTC) net operating income was $10 million, compared with $10 million in the prior quarter and $6 million in the prior year. Benefits and other changes in policy reserves increased $9 million after-tax versus the prior quarter and $29 million after-tax versus the prior year. The current quarter included unfavorable mortality on existing claims versus the prior quarter that decreased claim termination rates, in line with expected seasonality. Results also included unfavorable severity on new claims given the mix of new claims with a higher average reserve versus both the prior quarter and prior year and also reflected higher claim reserve factors, versus the prior year, based on the updated assumptions and methodologies the company implemented in 2014. Results in the quarter included a $5 million after-tax increase to reserves associated with profits followed by losses on business written since late 1995 and net favorable items of $12 million after-tax primarily reflecting corrections to reserve calculations. Results in the prior quarter included net unfavorable items of $7 million after-tax. The loss ratio in the current quarter was 73 percent.

Individual LTC sales of $8 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 LTC product and lower ratings, but build over time as new products are introduced.

Life Insurance

Life insurance net operating income was $22 million, compared with $40 million in the prior quarter and $39 million in the prior year. Results versus the prior quarter were primarily impacted by unfavorable term life insurance mortality related to higher severity, but favorable versus pricing. Increased lapses in the post-level term life insurance premium period and prepayment speed adjustments related to residential mortgage-backed securities also reduced earnings versus the prior quarter and prior year. Results versus the prior year were also impacted by higher reinsurance expenses. Sales of $15 million decreased compared to the prior quarter and the prior year given lower ratings. Linked benefit product deposits were $25 million in the quarter, down from $41 million in the prior quarter and $42 million in the prior year.

Fixed Annuities

Fixed annuities net operating income was $25 million, compared with $31 million in the prior quarter and $24 million in the prior year. Results in the quarter reflected unfavorable impacts from mortality versus the prior quarter. Sales in the quarter totaled $224 million, down sequentially and versus the prior year given the lower interest rate environment and lower ratings.

Corporate and Other Division

Corporate and Other Division net operating loss was $48 million, compared with $43 million in the prior quarter and $51 million in the prior year.


Corporate and Other Division
Net Operating Income (Loss)
(Amounts in millions)	Q2 15			Q1 15			Q2 14
Runoff	$	9		$	11		$	15
Corporate and Other		(57	)		(54	)		(66	)

Total Corporate and Other	$	(48	)	$	(43	)	$	(51	)

Runoff net operating income was $9 million, compared with $11 million in the prior quarter and $15 million in the prior year.

Corporate and Other net operating loss was $57 million, compared with $54 million in the prior quarter and $66 million in the prior year.

Capital & Liquidity

Genworth maintains solid capital positions in its operating subsidiaries.


Key Capital & Liquidity Metrics
(Dollar amounts in millions)	Q2 15			Q1 15			Q2 14
Canada MI
Minimum Capital Test (MCT) Ratio⁵		231	%		233	%		231	%
Australia MI
Prescribed Capital Amount (PCA) Ratio⁵		164	%		163	%		154	%
U.S. MI
Consolidated Risk-To-Capital Ratio⁵		13.7:1			14.1:1			14.6:1
GMICO Risk-To-Capital Ratio⁵		13.5:1			13.8:1			14.0:1
U.S. Life Companies
Consolidated Risk-Based Capital (RBC) Ratio⁵		455	%		453	%		492	%
Unassigned Surplus⁵	$	100		$	138		$	563
Holding Company Cash⁶ and Liquid Assets⁷	$	1,154		$	1,070		$	1,223

Key Points

•

$173 million from the net proceeds related to the sale of 92.3 million shares of the Australia MI business and $47 million of dividends from the operating subsidiaries were paid to the holding company during the second quarter;

•

Unassigned surplus declined versus the prior quarter primarily related to unfavorable LTC and life insurance mortality results;

•

The holding company ended the second quarter with a buffer of approximately $670 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;

•

In July 2015, $200 million of cash from Genworth Holdings, Inc. was transferred to U.S. mortgage insurance in exchange for the business’ ownership interest in affiliated preferred securities; and

•

In July 2015, the Australia MI business completed the issuance of AUD$200 million of subordinated notes and, concurrent with the transaction, redeemed approximately AUD$90 million of existing subordinated notes. If the transaction had been completed as of June 30, 2015, it would have favorably impacted the PCA ratio by approximately nine points.

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. Genworth has

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

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

⁷	Comprises cash and cash equivalents of $904 million, $820 million and $1,073 million, respectively, and U.S. government bonds of $250 million, $250 million and $150 million, respectively, as of June 30, 2015, March 31, 2015 and June 30, 2014.

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. To help families start “the talk” about their futures and long term care planning, Genworth recently completed the first stage of its national #LetsTalk Tour to encourage conversations and information sharing. 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 second 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 August 5, 2015. Investors are encouraged to review these materials.

Genworth will conduct a conference call on August 5, 2015 at 8:00 a.m. (ET) to discuss second 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 # 9386003. 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 August 19, 2015 at 888 203.1112 or 719 457.0820 (outside the U.S.); conference ID # 9386003. 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 “operating earnings per share.” Operating earnings 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.

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.

In the second quarter of 2015, the company recorded a $2 million after-tax expense related to restructuring costs as part of an expense reduction plan as the company evaluates and appropriately sizes its organizational needs and expenses.

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. This transaction was excluded from net operating income (loss) for the periods presented as it related to the loss on the early extinguishment of debt.

There were no infrequent or unusual items excluded from net operating income (loss) during the periods presented.

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 June 30, 2015 and 2014, as well as for the three months ended March 31, 2015.

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 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; and (5) new and additional premiums/deposits for fixed annuities. 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 and new premiums/deposits 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 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 the inability to complete the planned sale of the company’s lifestyle protection insurance business at all or on the terms anticipated and failure to attract buyers for 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 successfully develop more targeted product features and benefits, strengthen relationships with producers or 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 on 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 (GSEs) offering mortgage insurance; (iv) changes in regulations adversely affecting the company’s international operations; (v) inability to meet or maintain the private mortgage insurer 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 GSEs 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:		Julie Westermann, 804 662.2423

		[email protected]

Condensed Consolidated Statements of Income

(Amounts in millions, except per share amounts)


	Three months ended June 30,
	2015			2014
Revenues:
Premiums	$	1,134		$	1,144
Net investment income		793			791
Net investment gains (losses)		8			34
Insurance and investment product fees and other		222			225

Total revenues		2,157			2,194

Benefits and expenses:
Benefits and other changes in policy reserves		1,232			1,200
Interest credited		181			184
Acquisition and operating expenses, net of deferrals		295			282
Amortization of deferred acquisition costs and intangibles		101			108
Interest expense		103			112

Total benefits and expenses		1,912			1,886

Income from continuing operations before income taxes		245			308
Provision for income taxes		70			84

Income from continuing operations		175			224
Income (loss) from discontinued operations, net of taxes		(314	)		4

Net income (loss)		(139	)		228
Less: net income attributable to noncontrolling interests		54			52

Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	(193	)	$	176


Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share:
Basic	$	0.24		$	0.35

Diluted	$	0.24		$	0.34

Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share:
Basic	$	(0.39	)	$	0.35

Diluted	$	(0.39	)	$	0.35

Weighted-average shares outstanding:
Basic		497.4			496.6

Diluted		499.3			503.6

Reconciliation of Net Operating Income to Net Income (Loss)

(Amounts in millions, except per share amounts)


	Three months ended June 30,						Three months ended March 31,
	2015			2014			2015
Net operating income (loss):
Global Mortgage Insurance Division
International Mortgage Insurance segment
Canada	$	37		$	47		$	40
Australia		29			57			30
Other Countries		(5	)		(7	)		(6	)

Total International Mortgage Insurance segment		61			97			64
U.S. Mortgage Insurance segment		49			39			52

Total Global Mortgage Insurance Division		110			136			116

U.S. Life Insurance Division
U.S. Life Insurance segment
Long Term Care Insurance		10			6			10
Life Insurance		22			39			40
Fixed Annuities		25			24			31

Total U.S. Life Insurance segment		57			69			81

Total U.S. Life Insurance Division		57			69			81

Corporate and Other Division
Runoff segment		9			15			11
Corporate and Other		(57	)		(66	)		(54	)

Total Corporate and Other Division		(48	)		(51	)		(43	)

Net operating income		119			154			154
Adjustments to net operating income:
Net investment gains (losses), net (see below for reconciliation)		4			20			(1	)
Gains (losses) on early extinguishment of debt, net		—			(2	)		—
Expenses related to restructuring, net		(2	)		—			—
Income (loss) from discontinued operations, net of taxes		(314	)		4			1

Net income (loss) available to Genworth Financial, Inc.’s common stockholders		(193	)		176			154
Add: net income attributable to noncontrolling interests		54			52			50

Net income (loss)	$	(139	)	$	228		$	204


Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share:
Basic	$	(0.39	)	$	0.35		$	0.31

Diluted	$	(0.39	)	$	0.35		$	0.31

Net operating income per common share:
Basic	$	0.24		$	0.31		$	0.31

Diluted	$	0.24		$	0.31		$	0.31

Weighted-average shares outstanding:
Basic		497.4			496.6			497.0

Diluted		499.3			503.6			498.9


Reconciliation of net investment gains (losses):
Net investment gains (losses), gross	$	8		$	34		$	(16	)
Adjustments for:
Deferred acquisition costs and other intangible amortization and certain benefit reserves		8			3			6
Net investment gains (losses) attributable to noncontrolling interests		(9	)		(5	)		7
Taxes		(3	)		(12	)		2

Net investment gains (losses), net of taxes and other adjustments	$	4		$	20		$	(1	)

Condensed Consolidated Balance Sheets

(Amounts in millions)


	June 30, 2015			December 31, 2014
Assets
Cash, cash equivalents and invested assets	$	76,123		$	77,388
Deferred acquisition costs		4,896			4,849
Intangible assets		286			250
Goodwill		15			16
Reinsurance recoverable		17,297			17,314
Other assets		625			524
Separate account assets		8,702			9,208
Assets held for sale related to discontinued operations		1,220			1,809

Total assets	$	109,164		$	111,358

Liabilities and stockholders’ equity
Liabilities:
Future policy benefits	$	36,298		$	35,915
Policyholder account balances		25,987			26,032
Liability for policy and contract claims		7,990			7,937
Unearned premiums		3,431			3,547
Deferred tax and other liabilities		3,394			4,140
Borrowings related to securitization entities		199			219
Non-recourse funding obligations		1,967			1,996
Long-term borrowings		4,607			4,639
Separate account liabilities		8,702			9,208
Liabilities held for sale related to discontinued operations		862			928

Total liabilities		93,437			94,561

Stockholders’ equity:
Common stock		1			1
Additional paid-in capital		11,940			11,997

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		1,606			2,431
Net unrealized gains (losses) on other-than-temporarily impaired securities		22			22

Net unrealized investment gains (losses)		1,628			2,453

Derivatives qualifying as hedges		1,913			2,070
Foreign currency translation and other adjustments		(232	)		(77	)

Total accumulated other comprehensive income (loss)		3,309			4,446
Retained earnings		1,140			1,179
Treasury stock, at cost		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		13,690			14,923
Noncontrolling interests		2,037			1,874

Total stockholders’ equity		15,727			16,797

Total liabilities and stockholders’ equity	$	109,164		$	111,358

Impact of Foreign Exchange on Operating Results⁸

Three months ended June 30, 2015


	Percentages Including Foreign Exchange			Percentages Excluding Foreign Exchange⁹

Canada Mortgage Insurance (MI):
Flow new insurance written		8	%		22	%
Flow new insurance written (2Q15 vs. 1Q15)		64	%		67	%

Australia MI:
Flow new insurance written		(18	)%		(3	)%
Flow new insurance written (2Q15 vs. 1Q15)		12	%		16	%

⁸	All percentages are comparing the second quarter of 2015 to the second quarter of 2014 unless otherwise stated.

⁹	The impact of foreign exchange was calculated using the comparable prior period exchange rates.

Reconciliation of Core Yield to Reported Yield


	Three months ended June 30, 2015
(Assets - amounts in billions)
Reported Total Invested Assets and Cash	$	75.5
Subtract:
Securities lending		0.3
Unrealized gains (losses)		4.9
Derivative counterparty collateral		—

Adjusted end of period invested assets	$	70.3


Average Invested Assets Used in Reported Yield Calculation	$	70.2
Subtract:
Restricted commercial mortgage loans and other invested assets related to securitization entities¹⁰		0.2

Average Invested Assets Used in Core Yield Calculation	$	70.0


(Income - amounts in millions)
Reported Net Investment Income	$	793
Subtract:
Bond calls and commercial mortgage loan prepayments		17
Other non-core items¹¹		(4	)
Restricted commercial mortgage loans and other invested assets related to securitization entities¹⁰		2

Core Net Investment Income	$	778


Reported Yield		4.52	%

Core Yield		4.45	%

¹⁰	Represents the incremental assets and investment income related to restricted commercial mortgage loans and other invested assets.

¹¹	Includes cost basis adjustments on structured securities and various other immaterial items.

Exhibit 99.2

Second Quarter Financial Supplement

June 30, 2015

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND 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		16-38
Net Operating Income (Loss) and Sales—U.S. Life Insurance Division		40-46
Net Operating Loss and Other Metrics—Corporate and Other Division		48-54

*Additional Financial Data*
Investments Summary		56
Fixed Maturity Securities Summary		57
General Account GAAP Net Investment Income Yields		58
Net Investment Gains (Losses), Net—Detail		59

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		61
Reconciliation of Core Yield		62

*Corporate Information*
Industry Ratings		64

Note:

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

SECOND QUARTER 2015

Dear Investor,

Beginning in the second quarter of 2015, the lifestyle protection insurance business is being separately presented as discontinued operations and all prior periods herein have been re-presented. During the second quarter of 2015, the company recognized an after-tax loss of $306 million related to the planned sale of this business. The company expects the transaction to close by the end of 2015, subject to customary closing conditions, including requisite regulatory approvals.

Thank you for your continued interest in Genworth Financial.

Regards,

Amy Corbin

Investor Relations

[email protected]

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND 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.

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.

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.

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. This transaction was excluded from net operating income (loss) for the periods presented as it related to the loss on the early extinguishment of debt.

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 $205 million net tax impact in the fourth quarter of 2014 from potential business portfolio changes. 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 made a change to the permanent reinvestment assertion on one of its legal entities recognizing tax expense of $31 million in the fourth quarter of 2014.

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 61 and 62 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 59).

⁽¹⁾	U.S. Generally Accepted Accounting Principles

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND 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; and (5) new and additional premiums/deposits for fixed annuities. 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 and new premiums/deposits 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 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

SECOND QUARTER 2015

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014
Total Genworth Financial, Inc.'s stockholders' equity, excluding accumulated other comprehensive income	$	10,381	$	10,632	$	10,477	$	11,231	$	12,070
Total accumulated other comprehensive income		3,309		4,692		4,446		3,934		4,161

Total Genworth Financial, Inc.'s stockholders' equity	$	13,690	$	15,324	$	14,923	$	15,165	$	16,231

Book value per common share	$	27.52	$	30.81	$	30.04	$	30.54	$	32.68
Book value per common share, excluding accumulated other comprehensive income	$	20.87	$	21.38	$	21.09	$	22.62	$	24.31
Common shares outstanding as of the balance sheet date		497.4		497.4		496.7		496.6		496.6

	Twelve months ended
Twelve Month Rolling Average ROE	June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014
GAAP Basis ROE		-15.0%		-11.3%		-10.8%		-2.3%		5.7%
Operating ROE⁽¹⁾		-4.2%		-3.8%		-3.5%		1.7%		5.5%

	Three months ended
Quarterly Average ROE	June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014
GAAP Basis ROE		-7.3%		5.8%		-28.0%		-29.0%		5.8%
Operating ROE⁽¹⁾		4.5%		5.8%		-15.3%		-11.1%		5.1%


Basic and Diluted Shares	Three months ended June 30, 2015		Six months ended June 30, 2015
Weighted-average common shares used in basic earnings per common share calculations		497.4		497.2
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		1.9		1.9

Weighted-average common shares used in diluted earnings per common share calculations		499.3		499.1

⁽¹⁾	See page 61 herein for a reconciliation of GAAP Basis ROE to Operating ROE.

Consolidated Quarterly Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q		1Q			Total
REVENUES:
Premiums	$	1,134		$	1,143		$	2,277		$	1,214		$	1,210		$	1,144	$	1,132		$	4,700
Net investment income		793			781			1,574			797			778			791		776			3,142
Net investment gains (losses)		8			(16	)		(8	)		(11	)		(27	)		34		(18	)		(22	)
Insurance and investment product fees and other		222			227			449			229			229			225		226			909

Total revenues		2,157			2,135			4,292			2,229			2,190			2,194		2,116			8,729

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,232			1,192			2,424			2,136			1,934			1,200		1,148			6,418
Interest credited		181			180			361			185			185			184		183			737
Acquisition and operating expenses, net of deferrals		295			267			562			299			284			282		273			1,138
Amortization of deferred acquisition costs and intangibles		101			95			196			128			113			108		104			453
Goodwill impairment		—			—			—			299			550			—		—			849
Interest expense		103			107			210			106			104			112		111			433

Total benefits and expenses		1,912			1,841			3,753			3,153			3,170			1,886		1,819			10,028

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		245			294			539			(924	)		(980	)		308		297			(1,299	)
Provision (benefit) for income taxes		70			91			161			(78	)		(187	)		84		87			(94	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		175			203			378			(846	)		(793	)		224		210			(1,205	)
Income (loss) from discontinued operations, net of taxes⁽¹⁾		(314	)		1			(313	)		138			6			4		9			157

NET INCOME (LOSS)		(139	)		204			65			(708	)		(787	)		228		219			(1,048	)
Less: net income attributable to noncontrolling interests		54			50			104			52			57			52		35			196

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	(193	)	$	154		$	(39	)	$	(760	)	$	(844	)	$	176	$	184		$	(1,244	)


Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.24		$	0.31		$	0.55		$	(1.81	)	$	(1.71	)	$	0.35	$	0.35		$	(2.82	)
Diluted	$	0.24		$	0.31		$	0.55		$	(1.81	)	$	(1.71	)	$	0.34	$	0.35		$	(2.82	)
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(0.39	)	$	0.31		$	(0.08	)	$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)
Diluted	$	(0.39	)	$	0.31		$	(0.08	)	$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)
Weighted-average common shares outstanding
Basic		497.4			497.0			497.2			496.7			496.6			496.6		495.8			496.4
Diluted⁽²⁾		499.3			498.9			499.1			496.7			496.6			503.6		502.7			496.4

⁽¹⁾	Income (loss) from discontinued operations related to the lifestyle protection insurance business. Refer to page 54 for operating results of discontinued operations.

⁽²⁾

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations 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

SECOND QUARTER 2015

Net Operating Income (Loss) by Segment by Quarter

(amounts in millions, except per share amounts)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Global Mortgage Insurance Division
International Mortgage Insurance segment:
Canada	$	37		$	40		$	77		$	36		$	46		$	47		$	41		$	170
Australia⁽¹⁾		29			30			59			33			48			57			62			200
Other Countries		(5	)		(6	)		(11	)		(7	)		(7	)		(7	)		(4	)		(25	)

Total International Mortgage Insurance segment		61			64			125			62			87			97			99			345
U.S. Mortgage Insurance segment		49			52			101			21			(2	)		39			33			91

Total Global Mortgage Insurance Division		110			116			226			83			85			136			132			436

U.S. Life Insurance Division
U.S. Life Insurance segment:
Long-Term Care Insurance		10			10			20			(506	)		(361	)		6			46			(815	)
Life Insurance		22			40			62			1			13			39			21			74
Fixed Annuities		25			31			56			23			26			24			27			100

Total U.S. Life Insurance segment		57			81			138			(482	)		(322	)		69			94			(641	)

Total U.S. Life Insurance Division		57			81			138			(482	)		(322	)		69			94			(641	)

Corporate and Other Division
Runoff segment		9			11			20			16			5			15			12			48
Corporate and Other		(57	)		(54	)		(111	)		(32	)		(91	)		(66	)		(52	)		(241	)

Total Corporate and Other Division		(48	)		(43	)		(91	)		(16	)		(86	)		(51	)		(40	)		(193	)

NET OPERATING INCOME (LOSS)		119			154			273			(415	)		(323	)		154			186			(398	)
ADJUSTMENTS TO NET OPERATING INCOME (LOSS):
Net investment gains (losses), net		4			(1	)		3			(4	)		(10	)		20			(11	)		(5	)
Goodwill impairment, net		—			—			—			(274	)		(517	)		—			—			(791	)
Gains (losses) on early extinguishment of debt, net		—			—			—			—			—			(2	)		—			(2	)
Expenses related to restructuring, net		(2	)		—			(2	)		—			—			—			—			—
Tax impact from potential business portfolio changes		—			—			—			(205	)		—			—			—			(205	)
Income (loss) from discontinued operations, net of taxes		(314	)		1			(313	)		138			6			4			9			157

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(193	)		154			(39	)		(760	)		(844	)		176			184			(1,244	)
Add: net income attributable to noncontrolling interests		54			50			104			52			57			52			35			196

NET INCOME (LOSS)	$	(139	)	$	204		$	65		$	(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	$	(0.39	)	$	0.31		$	(0.08	)	$	(1.53	)	$	(1.70	)	$	0.35		$	0.37		$	(2.51	)
Diluted	$	(0.39	)	$	0.31		$	(0.08	)	$	(1.53	)	$	(1.70	)	$	0.35		$	0.37		$	(2.51	)
Net operating income (loss) per common share
Basic	$	0.24		$	0.31		$	0.55		$	(0.83	)	$	(0.65	)	$	0.31		$	0.37		$	(0.80	)
Diluted	$	0.24		$	0.31		$	0.55		$	(0.83	)	$	(0.65	)	$	0.31		$	0.37		$	(0.80	)
Weighted-average common shares outstanding
Basic		497.4			497.0			497.2			496.7			496.6			496.6			495.8			496.4
Diluted⁽²⁾		499.3			498.9			499.1			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 and 48.0% after the additional sell down on May 11, 2015. 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 June 30,				Six months ended June 30,
	2015		2014		2015		2014
Australia’s Net Operating Income	$	45	$	68	$	96	$	130
Less: Net Operating Income Attributable to Noncontrolling Interests		16		11		37		11

Australia’s Net Operating Income Available to Genworth Financial, Inc.’s Common Stockholders	$	29	$	57	$	59	$	119

⁽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

SECOND QUARTER 2015

Consolidated Balance Sheets

(amounts in millions)


	June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	60,568	$	61,904	$	61,276	$	61,091	$	61,083
Equity securities available-for-sale, at fair value		299		299		275		306		313
Commercial mortgage loans		6,175		6,149		6,100		6,077		5,986
Restricted commercial mortgage loans related to securitization entities		181		188		201		209		217
Policy loans		1,584		1,506		1,501		1,512		1,514
Other invested assets		2,191		2,697		2,244		2,218		1,902
Restricted other invested assets related to securitization entities		410		411		411		404		404

Total investments		71,408		73,154		72,008		71,817		71,419
Cash and cash equivalents		4,100		4,971		4,716		3,284		3,884
Accrued investment income		615		717		664		694		618
Deferred acquisition costs		4,896		4,745		4,849		4,870		4,844
Intangible assets		286		207		250		277		241
Goodwill		15		15		16		316		867
Reinsurance recoverable		17,297		17,305		17,314		17,342		17,238
Other assets		625		518		524		569		537
Separate account assets		8,702		9,064		9,208		9,420		9,911
Assets held for sale related to discontinued operations⁽¹⁾		1,220		1,635		1,809		1,925		2,085

Total assets	$	109,164	$	112,331	$	111,358	$	110,514	$	111,644

⁽¹⁾	The assets held for sale related to discontinued operations prior to the sale have been segregated in the consolidated balance sheets. The major asset categories for discontinued operations were as follows:


	June 30, 2015			March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	1,104		$	1,037	$	1,171	$	1,226	$	1,277
Equity securities available-for-sale, at fair value		7			7		7		7		7
Other invested assets		24			26		52		64		61

Total investments		1,135			1,070		1,230		1,297		1,345
Cash and cash equivalents		154			187		202		193		254
Accrued investment income		20			19		21		25		24
Deferred acquisition costs		176			173		193		215		241
Intangible assets		21			20		22		23		25
Reinsurance recoverable		35			34		32		31		38
Other assets		137			132		109		141		158

Assets held for sale related to discontinued operations		1,678			1,635		1,809		1,925		2,085
Fair value less pension settlement costs and closing costs impairment		(458	)		—		—		—		—

Total assets held for sale related to discontinued operations	$	1,220		$	1,635	$	1,809	$	1,925	$	2,085

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Consolidated Balance Sheets

(amounts in millions)


	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	36,298		$	36,488		$	35,915		$	34,697		$	34,497
Policyholder account balances		25,987			26,136			26,032			25,816			25,819
Liability for policy and contract claims		7,990			7,929			7,937			7,880			7,108
Unearned premiums		3,431			3,321			3,547			3,597			3,650
Other liabilities		3,136			3,623			3,282			3,274			3,326
Borrowings related to securitization entities		199			205			219			225			233
Non-recourse funding obligations		1,967			1,983			1,996			2,010			2,024
Long-term borrowings		4,607			4,601			4,639			4,662			4,691
Deferred tax liability		258			1,057			858			825			1,027
Separate account liabilities		8,702			9,064			9,208			9,420			9,911
Liabilities held for sale related to discontinued operations⁽¹⁾		862			843			928			987			1,094

Total liabilities		93,437			95,250			94,561			93,393			93,380

Stockholders’ equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,940			11,998			11,997			11,991			11,986

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

Net unrealized investment gains (losses)		1,628			2,748			2,453			2,067			2,128

Derivatives qualifying as hedges		1,913			2,247			2,070			1,753			1,652
Foreign currency translation and other adjustments		(232	)		(303	)		(77	)		114			381

Total accumulated other comprehensive income		3,309			4,692			4,446			3,934			4,161
Retained earnings		1,140			1,333			1,179			1,939			2,783
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		13,690			15,324			14,923			15,165			16,231
Noncontrolling interests		2,037			1,757			1,874			1,956			2,033

Total stockholders’ equity		15,727			17,081			16,797			17,121			18,264

Total liabilities and stockholders’ equity	$	109,164		$	112,331		$	111,358		$	110,514		$	111,644

⁽¹⁾	The liabilities held for sale related to discontinued operations prior to the sale have been segregated in the consolidated balance sheets. The major liability categories for discontinued operations were as follows:


	June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014
LIABILITIES
Policyholder account balances	$	10	$	10	$	11	$	11	$	15
Liability for policy and contract claims		108		101		106		107		116
Unearned premiums		420		410		439		487		541
Other liabilities		294		276		322		332		375
Deferred tax liability		30		46		50		50		47

Liabilities held for sale related to discontinued operations	$	862	$	843	$	928	$	987	$	1,094

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Consolidated Balance Sheet by Segment

(amounts in millions)


	June 30, 2015
	International Mortgage Insurance		U.S. Mortgage Insurance			U.S. Life Insurance		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	8,114	$	2,269		$	60,452	$	2,678		$	2,610		$	76,123
Deferred acquisition costs and intangible assets		173		26			4,691		298			9			5,197
Reinsurance recoverable		21		7			16,440		829			—			17,297
Deferred tax and other assets		175		39			351		(8	)		68			625
Separate account assets		—		—			—		8,702			—			8,702
Assets held for sale related to discontinued operations		—		—			—		—			1,220			1,220

Total assets	$	8,483	$	2,341		$	81,934	$	12,499		$	3,907		$	109,164

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	—	$	—		$	36,294	$	4		$	—		$	36,298
Policyholder account balances		—		—			22,837		3,150			—			25,987
Liability for policy and contract claims		308		996			6,671		15			—			7,990
Unearned premiums		2,602		214			608		7			—			3,431
Non-recourse funding obligations		—		—			1,997		—			(30	)		1,967
Deferred tax and other liabilities		458		(612	)		3,436		(25	)		137			3,394
Borrowings and capital securities		456		—			—		12			4,338			4,806
Separate account liabilities		—		—			—		8,702			—			8,702
Liabilities held for sale related to discontinued operations		—		—			—		—			862			862

Total liabilities		3,824		598			71,843		11,865			5,307			93,437

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		2,618		1,731			6,744		650			(1,362	)		10,381
Allocated accumulated other comprehensive income (loss)		4		12			3,347		(16	)		(38	)		3,309

Total Genworth Financial, Inc.’s stockholders’ equity		2,622		1,743			10,091		634			(1,400	)		13,690
Noncontrolling interests		2,037		—			—		—			—			2,037

Total stockholders’ equity		4,659		1,743			10,091		634			(1,400	)		15,727

Total liabilities and stockholders’ equity	$	8,483	$	2,341		$	81,934	$	12,499		$	3,907		$	109,164

⁽¹⁾	Includes inter-segment eliminations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Consolidated Balance Sheet by Segment

(amounts in millions)


	March 31, 2015
	International Mortgage Insurance		U.S. Mortgage Insurance			U.S. Life Insurance		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	7,918	$	2,292		$	62,974	$	2,681		$	2,977		$	78,842
Deferred acquisition costs and intangible assets		167		23			4,462		304			11			4,967
Reinsurance recoverable		20		15			16,427		843			—			17,305
Deferred tax and other assets		93		37			346		(8	)		50			518
Separate account assets		—		—			—		9,064			—			9,064
Assets held for sale related to discontinued operations		—		—			—		—			1,635			1,635

Total assets	$	8,198	$	2,367		$	84,209	$	12,884		$	4,673		$	112,331

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	—	$	—		$	36,484	$	4		$	—		$	36,488
Policyholder account balances		—		—			22,941		3,195			—			26,136
Liability for policy and contract claims		296		1,087			6,531		15			—			7,929
Unearned premiums		2,502		198			614		7			—			3,321
Non-recourse funding obligations		—		—			2,013		—			(30	)		1,983
Deferred tax and other liabilities		315		(680	)		4,329		(209	)		925			4,680
Borrowings and capital securities		450		—			—		12			4,344			4,806
Separate account liabilities		—		—			—		9,064			—			9,064
Liabilities held for sale related to discontinued operations		—		—			—		—			843			843

Total liabilities		3,563		605			72,912		12,088			6,082			95,250

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		2,854		1,737			6,567		811			(1,337	)		10,632
Allocated accumulated other comprehensive income (loss)		24		25			4,730		(15	)		(72	)		4,692

Total Genworth Financial, Inc.’s stockholders’ equity		2,878		1,762			11,297		796			(1,409	)		15,324
Noncontrolling interests		1,757		—			—		—			—			1,757

Total stockholders’ equity		4,635		1,762			11,297		796			(1,409	)		17,081

Total liabilities and stockholders’ equity	$	8,198	$	2,367		$	84,209	$	12,884		$	4,673		$	112,331

⁽¹⁾	Includes inter-segment eliminations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Deferred Acquisition Costs Rollforward

(amounts in millions)


	International Mortgage Insurance			U.S. Mortgage Insurance			U.S. Life Insurance⁽¹⁾			Runoff⁽²⁾			Corporate and Other		Total
Unamortized balance as of March 31, 2015	$	141		$	17		$	4,738		$	295		$	—	$	5,191
Costs deferred		16			4			48			1			—		69
Amortization, net of interest accretion		(12	)		(2	)		(64	)		(10	)		—		(88	)
Impact of foreign currency translation		2			—			—			—			—		2

Unamortized balance as of June 30, 2015		147			19			4,722			286			—		5,174
Effect of accumulated net unrealized investment (gains) losses		—			—			(274	)		(4	)		—		(278	)

Balance as of June 30, 2015	$	147		$	19		$	4,448		$	282		$	—	$	4,896

⁽¹⁾	Amortization, net of interest accretion, included $6 million of amortization related to net investment gains for the policyholder account balances.

⁽²⁾	Amortization, net of interest accretion, included $8 million of amortization related to net investment gains for the policyholder account balances.

Global Mortgage Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Income—Global Mortgage Insurance Division

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	364		$	365		$	729		$	387		$	388		$	381		$	372		$	1,528
Net investment income		76			85			161			87			97			86			92			362
Net investment gains (losses)		20			(17	)		3			(4	)		(4	)		12			(3	)		1
Insurance and investment product fees and other		1			(2	)		(1	)		(4	)		(7	)		(3	)		2			(12	)

Total revenues		461			431			892			466			474			476			463			1,879

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		99			94			193			145			199			107			110			561
Acquisition and operating expenses, net of deferrals		94			79			173			101			87			93			82			363
Amortization of deferred acquisition costs and intangibles		16			16			32			16			16			17			17			66
Interest expense		6			7			13			7			8			8			8			31

Total benefits and expenses		215			196			411			269			310			225			217			1,021

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		246			235			481			197			164			251			246			858
Provision for income taxes		75			75			150			237			24			61			80			402

INCOME (LOSS) FROM CONTINUING OPERATIONS		171			160			331			(40	)		140			190			166			456
Less: net income attributable to noncontrolling interests		54			50			104			52			57			52			35			196

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		117			110			227			(92	)		83			138			131			260
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(7	)		6			(1	)		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⁾	$	110		$	116		$	226		$	83		$	85		$	136		$	132		$	436

Effective tax rate (operating income)⁽²⁾		32.3	%		33.0	%⁽³⁾		32.7	%		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 $121 million and $245 million for the three and six months ended June 30, 2015, respectively.

⁽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.

⁽³⁾

The operating income effective tax rate for the first quarter of 2015 has been re-presented related to the tax associated with noncontrolling interests. There was no impact on the company’s total operating income effective tax rate as the offset was in Corporate and Other activities due to the tax allocation process.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Three months ended June 30, 2015	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	116		$	90		$	5		$	211		$	153		$	364
Net investment income		33			29			1			63			13			76
Net investment gains (losses)		20			—			—			20			—			20
Insurance and investment product fees and other		—			1			—			1			—			1

Total revenues		169			120			6			295			166			461

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		21			25			3			49			50			99
Acquisition and operating expenses, net of deferrals		22			25			9			56			38			94
Amortization of deferred acquisition costs and intangibles		9			5			—			14			2			16
Interest expense		4			2			—			6			—			6

Total benefits and expenses		56			57			12			125			90			215

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		113			63			(6	)		170			76			246
Provision (benefit) for income taxes		31			18			(1	)		48			27			75

INCOME (LOSS) FROM CONTINUING OPERATIONS		82			45			(5	)		122			49			171
Less: net income attributable to noncontrolling interests		38			16			—			54			—			54

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		44			29			(5	)		68			49			117

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(7	)		—			—			(7	)		—			(7	)

NET OPERATING INCOME (LOSS)	$	37		$	29		$	(5	)	$	61		$	49		$	110

Effective tax rate (operating income (loss))		27.3	%		29.5	%		10.0	%		29.2	%		35.6	%		32.3	%

	International Mortgage Insurance Segment
Three months ended June 30, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	128		$	102		$	7		$	237		$	144		$	381
Net investment income		39			36			—			75			11			86
Net investment gains (losses)		12			—			—			12			—			12
Insurance and investment product fees and other		1			(4	)		(1	)		(4	)		1			(3	)

Total revenues		180			134			6			320			156			476

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		15			24			6			45			62			107
Acquisition and operating expenses, net of deferrals		28			23			8			59			34			93
Amortization of deferred acquisition costs and intangibles		9			6			—			15			2			17
Interest expense		6			2			—			8			—			8

Total benefits and expenses		58			55			14			127			98			225

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		122			79			(8	)		193			58			251
Provision (benefit) for income taxes		32			11			(1	)		42			19			61

INCOME (LOSS) FROM CONTINUING OPERATIONS		90			68			(7	)		151			39			190
Less: net income attributable to noncontrolling interests		41			11			—			52			—			52

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		49			57			(7	)		99			39			138

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

NET OPERATING INCOME (LOSS)	$	47		$	57		$	(7	)	$	97		$	39		$	136

Effective tax rate (operating income (loss))		26.3	%		10.4	%		11.3	%		18.8	%		32.4	%		23.3	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Six months ended June 30, 2015	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	235		$	179		$	12		$	426		$	303		$	729
Net investment income		67			61			1			129			32			161
Net investment gains (losses)		2			1			—			3			—			3
Insurance and investment product fees and other		1			(3	)		—			(2	)		1			(1	)

Total revenues		305			238			13			556			336			892

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		46			39			8			93			100			193
Acquisition and operating expenses, net of deferrals		34			47			17			98			75			173
Amortization of deferred acquisition costs and intangibles		18			10			—			28			4			32
Interest expense		9			4			—			13			—			13

Total benefits and expenses		107			100			25			232			179			411

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		198			138			(12	)		324			157			481
Provision (benefit) for income taxes		53			42			(1	)		94			56			150

INCOME (LOSS) FROM CONTINUING OPERATIONS		145			96			(11	)		230			101			331
Less: net income attributable to noncontrolling interests		67			37			—			104			—			104

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		78			59			(11	)		126			101			227

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

NET OPERATING INCOME (LOSS)	$	77		$	59		$	(11	)	$	125		$	101		$	226

Effective tax rate (operating income (loss))		27.6	%		30.0	%		7.0	%		30.0	%		35.7	%		32.7	%

	International Mortgage Insurance Segment
Six months ended June 30, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	258		$	199		$	15		$	472		$	281		$	753
Net investment income		78			70			1			149			29			178
Net investment gains (losses)		9			—			—			9			—			9
Insurance and investment product fees and other		3			(4	)		(1	)		(2	)		1			(1	)

Total revenues		348			265			15			628			311			939

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		41			41			10			92			125			217
Acquisition and operating expenses, net of deferrals		49			42			17			108			67			175
Amortization of deferred acquisition costs and intangibles		19			11			—			30			4			34
Interest expense		11			5			—			16			—			16

Total benefits and expenses		120			99			27			246			196			442

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		228			166			(12	)		382			115			497
Provision (benefit) for income taxes		63			36			(1	)		98			43			141

INCOME (LOSS) FROM CONTINUING OPERATIONS		165			130			(11	)		284			72			356
Less: net income attributable to noncontrolling interests		76			11			—			87			—			87

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		89			119			(11	)		197			72			269

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(3	)		—			—			(3	)		—			(3	)
(Gains) losses on early extinguishment of debt, net		2			—			—			2			—			2

NET OPERATING INCOME (LOSS)	$	88		$	119		$	(11	)	$	196		$	72		$	268

Effective tax rate (operating income (loss))		28.8	%		21.2	%		11.0	%		25.3	%		37.2	%		28.9	%

International Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Income—International Mortgage Insurance Segment

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	211		$	215		$	426		$	236		$	242		$	237		$	235		$	950
Net investment income		63			66			129			76			78			75			74			303
Net investment gains (losses)		20			(17	)		3			(4	)		(4	)		12			(3	)		1
Insurance and investment product fees and other		1			(3	)		(2	)		(5	)		(7	)		(4	)		2			(14	)

Total revenues		295			261			556			303			309			320			308			1,240

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		49			44			93			54			58			45			47			204
Acquisition and operating expenses, net of deferrals		56			42			98			63			52			59			49			223
Amortization of deferred acquisition costs and intangibles		14			14			28			14			15			15			15			59
Interest expense		6			7			13			7			8			8			8			31

Total benefits and expenses		125			107			232			138			133			127			119			517

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		170			154			324			165			176			193			189			723
Provision for income taxes		48			46			94			226			34			42			56			358

INCOME (LOSS) FROM CONTINUING OPERATIONS		122			108			230			(61	)		142			151			133			365
Less: net income attributable to noncontrolling interests		54			50			104			52			57			52			35			196

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		68			58			126			(113	)		85			99			98			169

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(7	)		6			(1	)		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⁾	$	61		$	64		$	125		$	62		$	87		$	97		$	99		$	345


Effective tax rate (operating income)		29.2	%		30.7	%⁽²⁾		30.0	%		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 and $144 million for the three and six months ended June 30, 2015, respectively.

⁽²⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

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

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	116		$	119		$	235		$	127		$	130		$	128		$	130		$	515
Net investment income		33			34			67			38			39			39			39			155
Net investment gains (losses)		20			(18	)		2			(7	)		(4	)		12			(3	)		(2	)
Insurance and investment product fees and other		—			1			1			—			(2	)		1			2			1

Total revenues		169			136			305			158			163			180			168			669

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		21			25			46			33			28			15			26			102
Acquisition and operating expenses, net of deferrals		22			12			34			23			18			28			21			90
Amortization of deferred acquisition costs and intangibles		9			9			18			9			10			9			10			38
Interest expense		4			5			9			5			5			6			5			21

Total benefits and expenses		56			51			107			70			61			58			62			251

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		113			85			198			88			102			122			106			418
Provision for income taxes		31			22			53			24			24			32			31			111

INCOME FROM CONTINUING OPERATIONS		82			63			145			64			78			90			75			307
Less: net income attributable to noncontrolling interests		38			29			67			30			34			41			35			140

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		44			34			78			34			44			49			40			167

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(7	)		6			(1	)		2			2			(4	)		1			1
(Gains) losses on early extinguishment of debt, net		—			—			—			—			—			2			—			2

NET OPERATING INCOME⁽¹⁾	$	37		$	40		$	77		$	36		$	46		$	47		$	41		$	170


Effective tax rate (operating income)		27.3	%		27.9	%⁽²⁾		27.6	%		29.4	%		21.2	%		26.3	%		31.6	%		27.1	%

SALES:
New Insurance Written (NIW)
Flow	$	5,400		$	3,300		$	8,700		$	5,500		$	6,800		$	5,000		$	2,900		$	20,200
Bulk		3,300			5,000			8,300			2,300			5,600			7,500			2,900			18,300

Total Canada NIW⁽³⁾	$	8,700		$	8,300		$	17,000		$	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 $43 million and $87 million for the three and six months ended June 30, 2015, respectively.

⁽²⁾

⁽³⁾	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $9,800 million and $18,900 million for the three and six months ended June 30, 2015, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

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

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	90		$	89		$	179		$	102		$	105		$	102		$	97		$	406
Net investment income		29			32			61			36			38			36			34			144
Net investment gains (losses)		—			1			1			3			—			—			—			3
Insurance and investment product fees and other		1			(4	)		(3	)		(5	)		(7	)		(4	)		—			(16	)

Total revenues		120			118			238			136			136			134			131			537

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		25			14			39			15			22			24			17			78
Acquisition and operating expenses, net of deferrals		25			22			47			30			25			23			19			97
Amortization of deferred acquisition costs and intangibles		5			5			10			5			5			6			5			21
Interest expense		2			2			4			2			3			2			3			10

Total benefits and expenses		57			43			100			52			55			55			44			206

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		63			75			138			84			81			79			87			331
Provision for income taxes		18			24			42			202			10			11			25			248

INCOME (LOSS) FROM CONTINUING OPERATIONS		45			51			96			(118	)		71			68			62			83
Less: net income attributable to noncontrolling interests		16			21			37			22			23			11			—			56

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		29			30			59			(140	)		48			57			62			27

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS 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⁾	$	29		$	30		$	59		$	33		$	48		$	57		$	62		$	200


Effective tax rate (operating income)		29.5	%		30.5	%⁽²⁾		30.0	%		34.8	%		14.2	%		10.4	%		29.0	%		22.3	%

SALES:
New Insurance Written (NIW)
Flow	$	6,500		$	5,800		$	12,300		$	8,000		$	8,100		$	7,900		$	7,800		$	31,800
Bulk		1,700			—			1,700			100			1,000			—			—			1,100

Total Australia NIW⁽³⁾	$	8,200		$	5,800		$	14,000		$	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 and $68 million for the three and six months ended June 30, 2015, respectively.

⁽²⁾

⁽³⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $9,700 million and $16,200 million for the three and six months ended June 30, 2015, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

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

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	5		$	7		$	12		$	7		$	7		$	7		$	8		$	29
Net investment income		1			—			1			2			1			—			1			4
Net investment gains (losses)		—			—			—			—			—			—			—			—
Insurance and investment product fees and other		—			—			—			—			2			(1	)		—			1

Total revenues		6			7			13			9			10			6			9			34

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		3			5			8			6			8			6			4			24
Acquisition and operating expenses, net of deferrals		9			8			17			10			9			8			9			36
Amortization of deferred acquisition costs and intangibles		—			—			—			—			—			—			—			—
Interest expense		—			—			—			—			—			—			—			—

Total benefits and expenses		12			13			25			16			17			14			13			60

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(6	)		(6	)		(12	)		(7	)		(7	)		(8	)		(4	)		(26	)
Provision (benefit) for income taxes		(1	)		—			(1	)		—			—			(1	)		—			(1	)

LOSS FROM CONTINUING OPERATIONS		(5	)		(6	)		(11	)		(7	)		(7	)		(7	)		(4	)		(25	)
Less: net income attributable to noncontrolling interests		—			—			—			—			—			—			—			—

LOSS FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(5	)		(6	)		(11	)		(7	)		(7	)		(7	)		(4	)		(25	)

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

NET OPERATING LOSS⁽¹⁾	$	(5	)	$	(6	)	$	(11	)	$	(7	)	$	(7	)	$	(7	)	$	(4	)	$	(25	)


Effective tax rate (operating loss)		10.0	%		4.9	%		7.0	%		-4.2	%		-2.2	%		11.3	%		10.3	%		3.8	%

SALES:
New Insurance Written (NIW)
Flow	$	500		$	400		$	900		$	500		$	400		$	500		$	400		$	1,800
Bulk		—			200			200			—			—			—			—			—

Total Other Countries NIW⁽²⁾	$	500		$	600		$	1,100		$	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 $5 million and $11 million for the three and six months ended June 30, 2015, respectively.

⁽²⁾	New insurance written for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $600 million and $1,300 million for the three and six months ended June 30, 2015, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written
Canada	$	166		$	109		$	275		$	160		$	200		$	146		$	77		$	583
Australia		107			87			194			128			130			125			126			509
Other Countries⁽¹⁾		6			6			12			6			6			1			6			19

Total Net Premiums Written	$	279		$	202		$	481		$	294		$	336		$	272		$	209		$	1,111

Loss Ratio⁽²⁾
Canada		17	%		22	%		19	%		26	%		21	%		12	%		20	%		20	%
Australia⁽³⁾		28	%		15	%		22	%		15	%		21	%		23	%		17	%		19	%
Other Countries		43	%		81	%		63	%		84	%		105	%		90	%		55	%		83	%
Total Loss Ratio		23	%		21	%		22	%		23	%		24	%		19	%		20	%		21	%

GAAP Basis Expense Ratio⁽⁴⁾
Canada⁽⁵⁾		27	%		18	%		22	%		26	%		22	%		29	%		23	%		25	%
Australia		33	%		30	%		32	%		34	%		28	%		28	%		25	%		29	%
Other Countries⁽¹⁾		143	%		125	%		134	%		115	%		126	%		131	%		107	%		120	%
Total GAAP Basis Expense Ratio		33	%		26	%		30	%		32	%		28	%		32	%		27	%		30	%

Adjusted Expense Ratio⁽⁶⁾
Canada⁽⁷⁾		19	%		20	%		19	%		20	%		14	%		26	%		39	%		22	%
Australia		28	%		31	%		29	%		27	%		23	%		23	%		20	%		23	%
Other Countries⁽¹⁾		135	%		132	%		134	%		132	%		150	%		NM	⁽⁸⁾		142	%		186	%
Total Adjusted Expense Ratio		25	%		28	%		26	%		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 $300 million, $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 June 30, 2015, 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

SECOND QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2015				2014
	2Q		1Q		4Q		3Q		2Q		1Q
Primary Insurance In-Force
Canada⁽¹⁾	$	300,900	$	288,800	$	306,600	$	310,800	$	314,500	$	291,900
Australia		243,800		240,900		256,000		271,100		288,500		281,000
Other Countries		20,500		19,800		21,900		23,900		26,000		26,200

Total Primary Insurance In-Force	$	565,200	$	549,500	$	584,500	$	605,800	$	629,000	$	599,100

Primary Risk In-Force⁽²⁾
Canada
Flow	$	78,500	$	75,700	$	81,300	$	82,600	$	84,500	$	80,100
Bulk		26,800		25,400		26,000		26,200		25,600		22,100

Total Canada		105,300		101,100		107,300		108,800		110,100		102,200

Australia
Flow		79,100		78,600		83,400		88,100		93,800		91,100
Bulk		6,200		5,700		6,200		6,800		7,200		7,200

Total Australia		85,300		84,300		89,600		94,900		101,000		98,300

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

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

Total Primary Risk In-Force	$	192,900	$	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 $137.0 billion as of March 31, 2015, $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

SECOND QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(dollar amounts in millions)


Primary Insurance	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Insured loans in-force^(1),(2)		1,737,083			1,704,483			1,673,505			1,646,223			1,602,928
Insured delinquent loans		1,666			1,792			1,756			1,708			1,703
Insured delinquency rate^(2),(3)		0.10	%		0.11	%		0.10	%		0.10	%		0.11	%

Flow loans in-force⁽¹⁾		1,287,744			1,266,626			1,255,050			1,236,206			1,213,846
Flow delinquent loans		1,435			1,532			1,493			1,477			1,493
Flow delinquency rate⁽³⁾		0.11	%		0.12	%		0.12	%		0.12	%		0.12	%

Bulk loans in-force⁽¹⁾		449,339			437,857			418,455			410,017			389,082
Bulk delinquent loans		231			260			263			231			210
Bulk delinquency rate⁽³⁾		0.05	%		0.06	%		0.06	%		0.06	%		0.05	%

Loss Metrics	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Beginning Reserves	$	85		$	91		$	89		$	90		$	97
Paid claims⁽⁴⁾		(21	)		(22	)		(24	)		(24	)		(26	)
Increase in reserves		19			24			29			27			16
Impact of changes in foreign exchange rates		2			(8	)		(3	)		(4	)		3

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


	June 30, 2015						March 31, 2015						June 30, 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	%		0.04	%		46	%		0.05	%		47	%		0.06%
Alberta		17			0.09	%		17			0.09	%		16			0.10%
Quebec		14			0.19	%		14			0.19	%		14			0.18%
British Columbia		14			0.11	%		14			0.13	%		15			0.14%
Saskatchewan		3			0.13	%		3			0.15	%		2			0.11%
Nova Scotia		2			0.20	%		2			0.23	%		2			0.23%
Manitoba		2			0.07	%		2			0.07	%		2			0.06%
New Brunswick		1			0.18	%		1			0.22	%		1			0.21%
All Other		1			0.12	%		1			0.12	%		1			0.12%

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


By Policy Year
2006 and prior		29	%		0.02	%		30	%		0.03	%		33	%		0.03%
2007		8			0.15	%		9			0.14	%		9			0.18%
2008		7			0.20	%		7			0.22	%		8			0.22%
2009		4			0.16	%		5			0.19	%		5			0.22%
2010		7			0.20	%		7			0.23	%		8			0.26%
2011		7			0.25	%		7			0.26	%		8			0.25%
2012		10			0.19	%		10			0.19	%		12			0.14%
2013		10			0.10	%		10			0.11	%		11			0.05%
2014		12			0.05	%		12			0.05	%		6			— %
2015		6			—	%		3			—	%		—			— %

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

⁽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 809,100 as of March 31, 2015, 793,700 as of December 31, 2014, and 783,700 as of September 30, 2014. 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 March 31, 2015, 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

SECOND QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(Canadian dollar amounts in millions)


	2015								2014
	2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	25		$	25		$	50	$	26		$	25		$	28		$	28		$	107
Bulk		1			2			3		1			1			—			1			3

Total Paid Claims	$	26		$	27		$	53	$	27		$	26		$	28		$	29		$	110


Average Paid Claim (in thousands)	$	58.7		$	67.9				$	60.2		$	63.9		$	63.4		$	66.4

Average Reserve Per Delinquency (in thousands)	$	63.6		$	60.4				$	60.2		$	58.4		$	56.4		$	57.5

Loss Metrics

Beginning Reserves	$	108		$	106				$	100		$	96		$	107		$	108
Paid claims⁽¹⁾		(26	)		(27	)				(27	)		(26	)		(28	)		(29	)
Increase in reserves		24			29					33			30			17			28

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

Loan Amount⁽²⁾

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

Total		100	%		100	%				100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	216		$	215				$	213		$	212		$	209		$	208

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

2006 and prior		35	%		36	%				36	%		38	%		39	%		39	%
2007		61	%		61	%				61	%		64	%		64	%		65	%
2008		68	%		68	%				68	%		71	%		71	%		71	%
2009		66	%		66	%				66	%		69	%		70	%		70	%
2010		73	%		73	%				73	%		76	%		77	%		77	%
2011		77	%		77	%				77	%		80	%		81	%		81	%
2012		82	%		82	%				82	%		86	%		86	%		87	%
2013		86	%		86	%				87	%		90	%		91	%		91	%
2014		92	%		92	%				92	%		93	%		93	%		—	%
2015		93	%		—	%				—	%		—	%		—	%		—	%
Total Flow		56	%		56	%				56	%		57	%		57	%		57	%

Total Bulk		42	%		42	%				42	%		42	%		41	%		41	%
Total		52	%		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

SECOND QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(dollar amounts in millions)


Primary Insurance	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Insured loans in-force		1,481,755			1,498,197			1,496,616			1,490,221			1,481,201
Insured delinquent loans		5,900			5,378			4,953			5,300			5,405
Insured delinquency rate		0.40	%		0.36	%		0.33	%		0.36	%		0.36	%

Flow loans in-force		1,364,653			1,382,156			1,378,584			1,370,136			1,362,236
Flow delinquent loans		5,623			5,112			4,714			5,031			5,125
Flow delinquency rate		0.41	%		0.37	%		0.34	%		0.37	%		0.38	%

Bulk loans in-force		117,102			116,041			118,032			120,085			118,965
Bulk delinquent loans		277			266			239			269			280
Bulk delinquency rate		0.24	%		0.23	%		0.20	%		0.22	%		0.24	%

Loss Metrics	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Beginning Reserves	$	149		$	152		$	161		$	171		$	168
Paid claims⁽¹⁾		(15	)		(14	)		(14	)		(19	)		(24	)
Increase in reserves		25			21			15			22			24
Impact of changes in foreign exchange rates		1			(10	)		(10	)		(13	)		3

Ending Reserves	$	160		$	149		$	152		$	161		$	171


	June 30, 2015						March 31, 2015						June 30, 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	%		0.30	%		29	%		0.29	%		29	%		0.33%
Queensland		23			0.57	%		23			0.50	%		23			0.48%
Victoria		23			0.34	%		23			0.32	%		23			0.34%
Western Australia		11			0.45	%		11			0.37	%		11			0.34%
South Australia		6			0.52	%		6			0.48	%		6			0.43%
Australian Capital Territory		3			0.14	%		3			0.13	%		3			0.13%
Tasmania		2			0.35	%		2			0.28	%		2			0.30%
New Zealand		2			0.27	%		2			0.27	%		2			0.34%
Northern Territory		1			0.24	%		1			0.20	%		1			0.20%

Total		100	%		0.40	%		100	%		0.36	%		100	%		0.36%


By Policy Year
2006 and prior		30	%		0.25	%		31	%		0.22	%		33	%		0.23%
2007		7			0.78	%		8			0.68	%		8			0.72%
2008		7			0.97	%		7			0.87	%		8			0.95%
2009		8			0.73	%		9			0.70	%		9			0.66%
2010		6			0.45	%		6			0.42	%		7			0.40%
2011		7			0.46	%		7			0.42	%		8			0.39%
2012		9			0.49	%		9			0.40	%		10			0.29%
2013		10			0.32	%		10			0.26	%		11			0.10%
2014		11			0.12	%		11			0.06	%		6			— %
2015		5			—	%		2			—	%		—			— %

Total		100	%		0.40	%		100	%		0.36	%		100	%		0.36%

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(Australian dollar amounts in millions)


	2015								2014
	2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	19		$	17		$	36	$	15		$	20		$	25		$	30		$	90
Bulk		—			1			1		—			1			—			—			1

Total Paid Claims	$	19		$	18		$	37	$	15		$	21		$	25		$	30		$	91


Average Paid Claim (in thousands)	$	66.9		$	62.5				$	49.5		$	58.6		$	60.5		$	65.1

Average Reserve Per Delinquency (in thousands)	$	35.2		$	36.4				$	37.6		$	34.8		$	33.6		$	35.7

Loss Metrics
Beginning Reserves	$	196		$	186				$	184		$	181		$	181		$	192
Paid claims⁽¹⁾		(19	)		(18	)				(15	)		(21	)		(25	)		(30	)
Increase in reserves		31			28					17			24			25			19

Ending Reserves	$	208		$	196				$	186		$	184		$	181		$	181

Loan Amount⁽²⁾
Over $550K		14	%		13	%				13	%		13	%		12	%		12	%
$400K to $550K		19			19					18			18			18			18
$250K to $400K		36			37					37			37			37			37
$100K to $250K		25			26					26			26			27			27
$100K or Less		6			5					6			6			6			6

Total		100	%		100	%				100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	213		$	211				$	210		$	208		$	207		$	205

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

2006 and prior		35	%		36	%				36	%		38	%		38	%		40	%
2007		56	%		57	%				58	%		60	%		61	%		63	%
2008		63	%		65	%				66	%		67	%		68	%		70	%
2009		65	%		67	%				68	%		69	%		70	%		73	%
2010		70	%		72	%				73	%		74	%		76	%		78	%
2011		72	%		73	%				74	%		76	%		77	%		80	%
2012		72	%		74	%				75	%		77	%		78	%		80	%
2013		76	%		78	%				79	%		81	%		82	%		84	%
2014		84	%		85	%				86	%		87	%		87	%		—	%
2015		87	%		—	%				—	%		—	%		—	%		—	%
Total Flow		59	%		60	%				60	%		61	%		61	%		62	%

Total Bulk		26	%		27	%				28	%		28	%		29	%		30	%
Total		56	%		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

SECOND QUARTER 2015

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


Risk In-Force by Loan-To-Value Ratio⁽¹⁾	June 30, 2015						March 31, 2015
	Primary		Flow		Bulk		Primary		Flow		Bulk
Canada
95.01% and above	$	37,068	$	37,068	$	—	$	35,468	$	35,468	$	—
90.01% to 95.00%		23,753		23,753		—		23,036		23,036		—
80.01% to 90.00%		14,714		14,711		3		14,333		14,330		3
80.00% and below		29,767		2,922		26,845		28,236		2,828		25,408

Total Canada	$	105,302	$	78,454	$	26,848	$	101,073	$	75,662	$	25,411

Australia
95.01% and above	$	16,261	$	16,261	$	—	$	16,088	$	16,088	$	—
90.01% to 95.00%		21,496		21,489		7		21,121		21,114		7
80.01% to 90.00%		22,200		22,131		69		22,210		22,140		70
80.00% and below		25,376		19,267		6,109		24,887		19,267		5,620

Total Australia	$	85,333	$	79,148	$	6,185	$	84,306	$	78,609	$	5,697

Other Countries⁽²⁾
95.01% and above	$	479	$	479	$	—	$	466	$	466	$	—
90.01% to 95.00%		1,134		1,087		47		1,090		1,039		51
80.01% to 90.00%		575		359		216		575		342		233
80.00% and below		146		117		29		143		112		31

Total Other Countries	$	2,333	$	2,041	$	292	$	2,273	$	1,958	$	315

Amounts may not total due to rounding.

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

⁽²⁾	Other Countries flow and primary risk in-force exclude $300 million and $271 million, respectively, of risk in-force in Europe ceded under quota share reinsurance agreements as of June 30, 2015 and March 31, 2015.

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

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

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	153		$	150		$	303		$	151		$	146		$	144		$	137		$	578
Net investment income		13			19			32			11			19			11			18			59
Net investment gains (losses)		—			—			—			—			—			—			—			—
Insurance and investment product fees and other		—			1			1			1			—			1			—			2

Total revenues		166			170			336			163			165			156			155			639

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		50			50			100			91			141			62			63			357
Acquisition and operating expenses, net of deferrals		38			37			75			38			35			34			33			140
Amortization of deferred acquisition costs and intangibles		2			2			4			2			1			2			2			7

Total benefits and expenses		90			89			179			131			177			98			98			504

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		76			81			157			32			(12	)		58			57			135
Provision (benefit) for income taxes		27			29			56			11			(10	)		19			24			44

INCOME (LOSS) FROM CONTINUING OPERATIONS		49			52			101			21			(2	)		39			33			91
ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			—			—			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	49		$	52		$	101		$	21		$	(2	)	$	39		$	33		$	91

Effective tax rate (operating income (loss))		35.6	%		35.7	%		35.7	%		32.5	%		80.1	%		32.4	%		42.0	%		32.2	%

SALES:
New Insurance Written (NIW)
Flow	$	8,200		$	6,300		$	14,500		$	6,900		$	7,500		$	6,100		$	3,900		$	24,400
Bulk		—			—			—			—			—			—			—			—

Total U.S. Mortgage Insurance NIW	$	8,200		$	6,300		$	14,500		$	6,900		$	7,500		$	6,100		$	3,900		$	24,400

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

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

(amounts in millions)


	2015										2014
	2Q					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)			Flow NIW		Premium Rate (bps)
Product
Monthly⁽¹⁾	$	6,500		60		$	4,400		60		$	5,100		60		$	6,100		59		$	5,300		59		$	3,400		58
Single		1,700		172			1,900		160			1,800		155			1,400		194			800		197			500		200

Total Flow	$	8,200				$	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			Flow NIW		% of Flow NIW
FICO Scores
Over 735	$	5,000		61	%	$	3,700		59	%	$	4,100		59	%	$	4,400		59	%	$	3,600		59	%	$	2,400		61	%
680 - 735		2,500		30			2,100		33			2,200		32			2,400		32			2,000		33			1,200		31
660 - 679⁽²⁾		400		5			300		5			300		5			400		5			300		5			200		5
620 - 659		300		4			200		3			300		4			300		4			200		3			100		3
<620		—		—			—		—			—		—			—		—			—		—			—		—

Total Flow	$	8,200		100	%	$	6,300		100	%	$	6,900		100	%	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%

Loan-To-Value Ratio
95.01% and above	$	400		5	%	$	300		5	%	$	100		2	%	$	200		3	%	$	100		2	%	$	100		3	%
90.01% to 95.00%		4,200		51			3,100		49			3,500		51			3,900		52			3,300		54			1,900		49
85.01% to 90.00%		2,600		32			2,000		32			2,300		33			2,400		32			1,900		31			1,300		33
85.00% and below		1,000		12			900		14			1,000		14			1,000		13			800		13			600		15

Total Flow	$	8,200		100	%	$	6,300		100	%	$	6,900		100	%	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%

Origination
Purchase	$	6,500		79	%	$	4,300		68	%	$	5,300		77	%	$	6,400		85	%	$	5,100		84	%	$	3,000		77	%
Refinance		1,700		21			2,000		32			1,600		23			1,100		15			1,000		16			900		23

Total Flow	$	8,200		100	%	$	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

SECOND QUARTER 2015

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	170		$	170		$	340		$	171		$	162		$	151		$	144		$	628

New Risk Written
Flow	$	2,040		$	1,557		$	3,597		$	1,703		$	1,878		$	1,521		$	960		$	6,062
Bulk		—			—			—			—			—			—			—			—

Total Primary		2,040			1,557			3,597			1,703			1,878			1,521			960			6,062
Pool		—			—			—			—			—			—			—			—

Total New Risk Written	$	2,040		$	1,557		$	3,597		$	1,703		$	1,878		$	1,521		$	960		$	6,062


Primary Insurance In-Force	$	117,100		$	115,200					$	114,400		$	112,400		$	110,500		$	109,100

Risk In-Force
Flow	$	29,026		$	28,415					$	28,112		$	27,507		$	26,880		$	26,405
Bulk⁽¹⁾		360			387						402			419			434			442

Total Primary		29,386			28,802						28,514			27,926			27,314			26,847
Pool		137			142						151			159			163			171

Total Risk In-Force	$	29,523		$	28,944					$	28,665		$	28,085		$	27,477		$	27,018


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

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

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

Flow Persistency		79	%		81	%					83	%		80	%		83	%		85	%

Risk To Capital Ratio⁽⁴⁾		13.7:1			14.1:1						14.5:1			15.4:1			14.6:1			18.7:1

Average Primary Loan Size (in thousands)	$	184		$	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 June 30, 2015, 86% 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

SECOND QUARTER 2015

Loss Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow
Direct	$	131		$	130		$	261		$	142		$	148		$	148		$	178		$	616
Assumed⁽¹⁾		4			5			9			3			4			6			6			19
Ceded		(1	)		(16	)		(17	)		(4	)		(3	)		(4	)		(15	)		(26	)
Loss adjustment expenses		3			4			7			4			4			4			5			17

Total Flow		137			123			260			145			153			154			174			626
Bulk		2			2			4			2			2			2			2			8

Total Primary		139			125			264			147			155			156			176			634
Pool		1			1			2			2			1			1			1			5

Total Paid Claims	$	140		$	126		$	266		$	149		$	156		$	157		$	177		$	639


Average Paid Claim (in thousands)	$	50.8		$	46.5					$	46.6		$	47.6		$	47.2		$	43.6

Average Reserve Per Delinquency (in thousands)
Flow	$	30.6		$	31.0					$	30.2		$	30.7		$	30.0		$	30.3
Bulk loans with established reserve		21.5			21.2						20.4			20.5			22.5			19.2
Bulk loans with no reserve⁽²⁾		—			—						—			—			—			—

Reserves:
Flow direct case	$	909		$	992					$	1,065		$	1,122		$	1,083		$	1,172
Bulk direct case		18			20						21			22			24			25
Assumed⁽¹⁾		12			15						21			21			24			29
All other⁽³⁾		57			60						73			74			125			129

Total Reserves	$	996		$	1,087					$	1,180		$	1,239		$	1,256		$	1,355


Beginning Reserves	$	1,087		$	1,180		$	1,180		$	1,239		$	1,256		$	1,355		$	1,482		$	1,482
Paid claims		(141	)		(142	)		(283	)		(153	)		(158	)		(162	)		(192	)		(665	)
Increase in reserves		50			49			99			94			141			63			65			363

Ending Reserves	$	996		$	1,087		$	996		$	1,180		$	1,239		$	1,256		$	1,355		$	1,180


Beginning Reinsurance Recoverable⁽⁴⁾	$	7		$	24		$	24		$	25		$	27		$	31		$	44		$	44
Ceded paid claims		(1	)		(16	)		(17	)		(4	)		(2	)		(5	)		(15	)		(26	)
Increase in recoverable		—			(1	)		(1	)		3			—			1			2			6

Ending Reinsurance Recoverable	$	6		$	7		$	6		$	24		$	25		$	27		$	31		$	24

Loss Ratio⁽⁵⁾		33	%		33	%		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

SECOND QUARTER 2015

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		31,876			34,220						38,177			39,485			40,897			43,733
Bulk loans with an established reserve		908			984						1,109			1,147			1,147			1,434
Bulk loans with no reserve⁽¹⁾		415			461						500			515			561			694

Total Number of Primary Delinquencies		33,199			35,665						39,786			41,147			42,605			45,861


Beginning Number of Primary Delinquencies		35,665			39,786			39,786			41,147			42,605			45,861			51,459			51,459
New delinquencies		9,061			9,554			18,615			10,826			11,574			10,568			12,100			45,068
Delinquency cures		(8,800	)		(10,988	)		(19,788	)		(9,030	)		(9,790	)		(10,545	)		(13,678	)		(43,043	)
Paid claims		(2,727	)		(2,687	)		(5,414	)		(3,157	)		(3,242	)		(3,279	)		(4,020	)		(13,698	)

Ending Number of Primary Delinquencies		33,199			35,665			33,199			39,786			41,147			42,605			45,861			39,786


Composition of Cures
Reported delinquent and cured-intraquarter		1,658			2,271						1,434			2,093			1,993			3,141
Number of missed payments delinquent prior to cure:
3 payments or less		4,260			6,112						5,340			5,202			5,335			7,252
4 - 11 payments		2,250			1,912						1,613			1,772			2,253			2,391
12 payments or more		632			693						643			723			964			894

Total		8,800			10,988						9,030			9,790			10,545			13,678


Primary Delinquencies by Missed Payment Status
3 payments or less		9,432			9,271						11,318			11,478			11,228			11,351
4 - 11 payments		7,824			9,086						9,684			9,610			9,913			11,463
12 payments or more		15,943			17,308						18,784			20,059			21,464			23,047

Primary Delinquencies		33,199			35,665						39,786			41,147			42,605			45,861



	June 30, 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		9,071		$	58		$	364			16%
4 - 11 payments in default		7,590			195			313			62%
12 payments or more in default		15,215			656			756			87%

Total		31,876		$	909		$	1,433			63%


	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

SECOND QUARTER 2015

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2015						2014
	2Q			1Q			4Q			3Q			2Q			1Q
Primary Loans
Primary loans in-force		636,640			631,591			630,852			624,850			620,415			618,442
Primary delinquent loans		33,199			35,665			39,786			41,147			42,605			45,861
Primary delinquency rate		5.21	%		5.65	%		6.31	%		6.59	%		6.87	%		7.42	%

Flow loans in-force		608,615			601,472			599,206			591,823			585,719			582,553
Flow delinquent loans		31,876			34,220			38,177			39,485			40,897			43,733
Flow delinquency rate		5.24	%		5.69	%		6.37	%		6.67	%		6.98	%		7.51	%

Bulk loans in-force		28,025			30,119			31,646			33,027			34,696			35,889
Bulk delinquent loans		1,323			1,445			1,609			1,662			1,708			2,128
Bulk delinquency rate		4.72	%		4.80	%		5.08	%		5.03	%		4.92	%		5.93	%

A minus and sub-prime loans in-force		31,051			33,805			33,529			34,825			36,219			37,714
A minus and sub-prime delinquent loans		6,530			7,019			7,851			8,017			8,238			8,789
A minus and sub-prime delinquency rate		21.03	%		20.76	%		23.42	%		23.02	%		22.74	%		23.30	%

Pool Loans
Pool loans in-force		7,709			7,979			8,282			10,125			10,336			10,710
Pool delinquent loans		447			468			521			549			546			575
Pool delinquency rate		5.80	%		5.87	%		6.29	%		5.42	%		5.28	%		5.37	%

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	June 30, 2015
Policy Year	Average Rate⁽¹⁾			% of Total Reserves⁽²⁾			Primary Insurance In-Force		% of Total			Primary Risk In-Force		% of Total			Delinquency Rate
2004 and prior		6.08	%		12.2	%	$	4,724		4.0	%	$	1,073		3.7	%		14.18	%
2005		5.67	%		12.2			4,063		3.5			1,098		3.7			13.38	%
2006		5.89	%		17.4			6,593		5.6			1,686		5.7			12.83	%
2007		5.80	%		37.0			16,202		13.8			4,072		13.9			11.87	%
2008		5.33	%		17.8			14,065		12.0			3,561		12.1			6.76	%
2009		4.96	%		0.7			2,157		1.8			498		1.7			2.07	%
2010		4.69	%		0.6			2,786		2.4			679		2.3			1.47	%
2011		4.52	%		0.5			3,817		3.3			965		3.3			1.22	%
2012		3.81	%		0.5			9,711		8.3			2,485		8.5			0.49	%
2013		3.98	%		0.6			16,812		14.4			4,237		14.4			0.39	%
2014		4.39	%		0.5			21,815		18.6			5,467		18.6			0.23	%
2015		4.04	%		—			14,395		12.3			3,565		12.1			0.04	%

Total		4.87	%		100.0	%	$	117,140		100.0	%	$	29,386		100.0	%		5.21	%


	June 30, 2015						March 31, 2015					June 30, 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)	$	29,386			5.21	%	$	28,802		5.65	%	$	27,314		6.87	%
Top 10 lenders		11,926			6.61	%		12,123		6.98	%		12,393		7.96	%
Top 20 lenders		14,065			6.12	%		14,177		6.54	%		14,328		7.88	%

Loan-to-value ratio
95.01% and above	$	6,540			7.87	%	$	6,654		8.16	%	$	7,107		8.91	%
90.01% to 95.00%		13,006			3.86	%		12,398		4.34	%		10,738		5.86	%
80.01% to 90.00%		9,513			5.07	%		9,402		5.51	%		9,081		6.73	%
80.00% and below		327			3.33	%		348		3.37	%		388		3.45	%

Total	$	29,386			5.21	%	$	28,802		5.65	%	$	27,314		6.87	%

Loan grade
Prime	$	28,221			4.40	%	$	27,593		4.81	%	$	25,965		5.88	%
A minus and sub-prime		1,165			21.03	%		1,209		21.18	%		1,349		22.74	%

Total	$	29,386			5.21	%	$	28,802		5.65	%	$	27,314		6.87	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $996 million as of June 30, 2015.

U.S. Life Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

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

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	769		$	778		$	1,547		$	827		$	821		$	762		$	759		$	3,169
Net investment income		677			671			1,348			676			658			671			660			2,665
Net investment gains (losses)		(7	)		(4	)		(11	)		12			1			25			3			41
Insurance and investment product fees and other		182			180			362			180			186			175			171			712

Total revenues		1,621			1,625			3,246			1,695			1,666			1,633			1,593			6,587

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,122			1,091			2,213			1,981			1,722			1,087			1,030			5,820
Interest credited		150			150			300			154			155			155			154			618
Acquisition and operating expenses, net of deferrals		167			163			330			168			173			156			161			658
Amortization of deferred acquisition costs and intangibles		75			73			148			98			91			81			75			345
Goodwill impairment		—			—			—			299			550			—			—			849
Interest expense		22			25			47			23			22			21			21			87

Total benefits and expenses		1,536			1,502			3,038			2,723			2,713			1,500			1,441			8,377

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		85			123			208			(1,028	)		(1,047	)		133			152			(1,790	)
Provision (benefit) for income taxes		31			43			74			(278	)		(211	)		47			57			(385	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		54			80			134			(750	)		(836	)		86			95			(1,405	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		2			1			3			(6	)		(3	)		(17	)		(1	)		(27	)
Goodwill impairment, net		—			—			—			274			517			—			—			791
Expenses related to restructuring, net		1			—			1			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	57		$	81		$	138		$	(482	)	$	(322	)	$	69		$	94		$	(641	)


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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Income—U.S. Life Insurance Division

(amounts in millions)


	U.S. Life Insurance Segment
Three months ended June 30, 2015	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	597		$	169		$	3		$	769		$	769
Net investment income		320			127			230			677			677
Net investment gains (losses)		(3	)		3			(7	)		(7	)		(7	)
Insurance and investment product fees and other		1			178			3			182			182

Total revenues		915			477			229			1,621			1,621

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		780			266			76			1,122			1,122
Interest credited		—			68			82			150			150
Acquisition and operating expenses, net of deferrals		98			52			17			167			167
Amortization of deferred acquisition costs and intangibles		24			33			18			75			75
Interest expense		—			22			—			22			22

Total benefits and expenses		902			441			193			1,536			1,536

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		13			36			36			85			85
Provision for income taxes		5			13			13			31			31

INCOME FROM CONTINUING OPERATIONS		8			23			23			54			54

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		2			(2	)		2			2			2
Expenses related to restructuring, net		—			1			—			1			1

NET OPERATING INCOME	$	10		$	22		$	25		$	57		$	57

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

	U.S. Life Insurance Segment
Three months ended June 30, 2014	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	577		$	171		$	14		$	762		$	762
Net investment income		292			137			242			671			671
Net investment gains (losses)		3			23			(1	)		25			25
Insurance and investment product fees and other		—			173			2			175			175

Total revenues		872			504			257			1,633			1,633

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		735			257			95			1,087			1,087
Interest credited		—			66			89			155			155
Acquisition and operating expenses, net of deferrals		97			45			14			156			156
Amortization of deferred acquisition costs and intangibles		27			32			22			81			81
Interest expense		—			21			—			21			21

Total benefits and expenses		859			421			220			1,500			1,500

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		13			83			37			133			133
Provision for income taxes		5			29			13			47			47

INCOME FROM CONTINUING OPERATIONS		8			54			24			86			86

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(2	)		(15	)		—			(17	)		(17	)

NET OPERATING INCOME	$	6		$	39		$	24		$	69		$	69

Effective tax rate (operating income)		37.1	%		35.4	%		35.5	%		35.6	%		35.6	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Income—U.S. Life Insurance Division

(amounts in millions)


	U.S. Life Insurance Segment
Six months ended June 30, 2015	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	1,186		$	348		$	13		$	1,547		$	1,547
Net investment income		633			254			461			1,348			1,348
Net investment gains (losses)		—			6			(17	)		(11	)		(11	)
Insurance and investment product fees and other		1			356			5			362			362

Total revenues		1,820			964			462			3,246			3,246

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,546			516			151			2,213			2,213
Interest credited		—			134			166			300			300
Acquisition and operating expenses, net of deferrals		193			103			34			330			330
Amortization of deferred acquisition costs and intangibles		50			63			35			148			148
Goodwill impairment		—			—			—			—			—
Interest expense		—			47			—			47			47

Total benefits and expenses		1,789			863			386			3,038			3,038

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		31			101			76			208			208
Provision for income taxes		11			36			27			74			74

INCOME FROM CONTINUING OPERATIONS		20			65			49			134			134

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			(4	)		7			3			3
Expenses related to restructuring, net		—			1			—			1			1

NET OPERATING INCOME	$	20		$	62		$	56		$	138		$	138


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

	U.S. Life Insurance Segment
Six months ended June 30, 2014	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	1,142		$	354		$	25		$	1,521		$	1,521
Net investment income		582			265			484			1,331			1,331
Net investment gains (losses)		3			24			1			28			28
Insurance and investment product fees and other		1			341			4			346			346

Total revenues		1,728			984			514			3,226			3,226

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,399			538			180			2,117			2,117
Interest credited		—			132			177			309			309
Acquisition and operating expenses, net of deferrals		190			95			32			317			317
Amortization of deferred acquisition costs and intangibles		53			58			45			156			156
Interest expense		—			42			—			42			42

Total benefits and expenses		1,642			865			434			2,941			2,941

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		86			119			80			285			285
Provision for income taxes		32			43			29			104			104

INCOME FROM CONTINUING OPERATIONS		54			76			51			181			181

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(2	)		(16	)		—			(18	)		(18	)

NET OPERATING INCOME	$	52		$	60		$	51		$	163		$	163


Effective tax rate (operating income)		37.0	%		36.8	%		35.9	%		36.6	%		36.6	%

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

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

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	597		$	589		$	1,186		$	607		$	587		$	577		$	565		$	2,336
Net investment income		320			313			633			303			293			292			290			1,178
Net investment gains (losses)		(3	)		3			—			6			(1	)		3			—			8
Insurance and investment product fees and other		1			—			1			—			—			—			1			1

Total revenues		915			905			1,820			916			879			872			856			3,523

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		780			766			1,546			1,545			1,313			735			664			4,257
Interest credited		—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		98			95			193			106			103			97			93			399
Amortization of deferred acquisition costs and intangibles		24			26			50			34			25			27			26			112
Goodwill impairment		—			—			—			154			200			—			—			354
Interest expense		—			—			—			—			—			—			—			—

Total benefits and expenses		902			887			1,789			1,839			1,641			859			783			5,122

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		13			18			31			(923	)		(762	)		13			73			(1,599	)
Provision (benefit) for income taxes		5			6			11			(291	)		(234	)		5			27			(493	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		8			12			20			(632	)		(528	)		8			46			(1,106	)

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

NET OPERATING INCOME (LOSS)	$	10		$	10		$	20		$	(506	)	$	(361	)	$	6		$	46		$	(815	)



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

SALES:
Individual Long-Term Care Insurance	$	8		$	10		$	18		$	17		$	28		$	24		$	21		$	90
Group Long-Term Care Insurance		1			1			2			6			1			2			1			10

Total Sales	$	9		$	11		$	20		$	23		$	29		$	26		$	22		$	100


RATIOS:
Loss Ratio⁽¹⁾		72.6	%		72.4	%		72.5	%		200.1	%		173.0	%		73.2	%		63.3	%		128.8	%
Gross Benefits Ratio⁽²⁾		130.5	%		130.2	%		130.3	%		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

SECOND QUARTER 2015

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

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	169		$	179		$	348		$	175		$	193		$	171		$	183		$	722
Net investment income		127			127			254			133			123			137			128			521
Net investment gains (losses)		3			3			6			—			10			23			1			34
Insurance and investment product fees and other		178			178			356			179			184			173			168			704

Total revenues		477			487			964			487			510			504			480			1,981

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		266			250			516			315			293			257			281			1,146
Interest credited		68			66			134			67			67			66			66			266
Acquisition and operating expenses, net of deferrals		52			51			103			45			52			45			50			192
Amortization of deferred acquisition costs and intangibles		33			30			63			36			46			32			26			140
Goodwill impairment		—			—			—			145			350			—			—			495
Interest expense		22			25			47			23			22			21			21			87

Total benefits and expenses		441			422			863			631			830			421			444			2,326

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		36			65			101			(144	)		(320	)		83			36			(345	)
Provision for income taxes		13			23			36			—			11			29			14			54

INCOME (LOSS) FROM CONTINUING OPERATIONS		23			42			65			(144	)		(331	)		54			22			(399	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(2	)		(2	)		(4	)		—			(6	)		(15	)		(1	)		(22	)
Goodwill impairment, net		—			—			—			145			350			—			—			495
Expenses related to restructuring, net		1			—			1			—			—			—			—			—

NET OPERATING INCOME	$	22		$	40		$	62		$	1		$	13		$	39		$	21		$	74



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

SALES:
Sales by Product:
Term Life	$	9		$	9		$	18		$	11		$	13		$	14		$	13		$	51
Universal Life		4			4			8			7			11			7			6			31
Linked-Benefits		2			4			6			5			4			5			2			16

Total Sales	$	15		$	17		$	32		$	23		$	28		$	26		$	21		$	98

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

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

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	3		$	10		$	13		$	45		$	41		$	14		$	11		$	111
Net investment income		230			231			461			240			242			242			242			966
Net investment gains (losses)		(7	)		(10	)		(17	)		6			(8	)		(1	)		2			(1	)
Insurance and investment product fees and other		3			2			5			1			2			2			2			7

Total revenues		229			233			462			292			277			257			257			1,083

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		76			75			151			121			116			95			85			417
Interest credited		82			84			166			87			88			89			88			352
Acquisition and operating expenses, net of deferrals		17			17			34			17			18			14			18			67
Amortization of deferred acquisition costs and intangibles		18			17			35			28			20			22			23			93
Interest expense		—			—			—			—			—			—			—			—

Total benefits and expenses		193			193			386			253			242			220			214			929

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		36			40			76			39			35			37			43			154
Provision for income taxes		13			14			27			13			12			13			16			54

INCOME FROM CONTINUING OPERATIONS		23			26			49			26			23			24			27			100

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		2			5			7			(3	)		3			—			—			—

NET OPERATING INCOME	$	25		$	31		$	56		$	23		$	26		$	24		$	27		$	100


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

SALES:
Sales by Product:
Single Premium Deferred Annuities	$	211		$	306		$	517		$	439		$	322		$	400		$	492		$	1,653
Single Premium Immediate Annuities		13			20			33			56			49			29			28			162

Total Sales	$	224		$	326		$	550		$	495		$	371		$	429		$	520		$	1,815

Corporate and Other Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Loss—Corporate and Other Division

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	1		$	—		$	1		$	—		$	1		$	1		$	1		$	3
Net investment income		40			25			65			34			23			34			24			115
Net investment gains (losses)		(5	)		5			—			(19	)		(24	)		(3	)		(18	)		(64	)
Insurance and investment product fees and other		39			49			88			53			50			53			53			209

Total revenues		75			79			154			68			50			85			60			263

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		11			7			18			10			13			6			8			37
Interest credited		31			30			61			31			30			29			29			119
Acquisition and operating expenses, net of deferrals		34			25			59			30			24			33			30			117
Amortization of deferred acquisition costs and intangibles		10			6			16			14			6			10			12			42
Interest expense		75			75			150			76			74			83			82			315

Total benefits and expenses		161			143			304			161			147			161			161			630

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(86	)		(64	)		(150	)		(93	)		(97	)		(76	)		(101	)		(367	)
Provision (benefit) for income taxes		(36	)		(27	)		(63	)		(37	)		—			(24	)		(50	)		(111	)

LOSS FROM CONTINUING OPERATIONS		(50	)		(37	)		(87	)		(56	)		(97	)		(52	)		(51	)		(256	)
Income (loss) from discontinued operations, net of taxes		(314	)		1			(313	)		138			6			4			9			157

NET INCOME (LOSS)		(364	)		(36	)		(400	)		82			(91	)		(48	)		(42	)		(99	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		1			(6	)		(5	)		9			11			1			11			32
Expenses related to restructuring, net		1			—			1			—			—			—			—			—
Tax impact from potential business portfolio changes		—			—			—			31			—			—			—			31
(Income) loss from discontinued operations, net of taxes		314			(1	)		313			(138	)		(6	)		(4	)		(9	)		(157	)

NET OPERATING LOSS	$	(48	)	$	(43	)	$	(91	)	$	(16	)	$	(86	)	$	(51	)	$	(40	)	$	(193	)


Effective tax rate (operating loss)		42.2	%		38.1	%⁽¹⁾		40.3	%		80.8	%		-7.2	%		32.1	%		52.0	%		39.4	%

⁽¹⁾

The operating loss effective tax rate for the first quarter of 2015 has been re-presented due to the tax allocation process related to the tax associated with noncontrolling interests. There was no impact on the company’s total operating income effective tax rate as the offset was in the Global Mortgage Insurance Division (Canada and Australia).

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Three months ended June 30, 2015	Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	1		$	—		$	1
Net investment income		40			—			40
Net investment gains (losses)		(8	)		3			(5	)
Insurance and investment product fees and other		49			(10	)		39

Total revenues		82			(7	)		75

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		11			—			11
Interest credited		31			—			31
Acquisition and operating expenses, net of deferrals		21			13			34
Amortization of deferred acquisition costs and intangibles		10			—			10
Interest expense		1			74			75

Total benefits and expenses		74			87			161

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		8			(94	)		(86	)
Provision (benefit) for income taxes		2			(38	)		(36	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		6			(56	)		(50	)
Loss from discontinued operations, net of taxes		—			(314	)		(314	)

NET INCOME (LOSS)		6			(370	)		(364	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		3			(2	)		1
Expenses related to restructuring, net		—			1			1
Loss from discontinued operations, net of taxes		—			314			314

NET OPERATING INCOME (LOSS)	$	9		$	(57	)	$	(48	)


Effective tax rate (operating income (loss))		25.7	%		42.1	%		42.2	%

Three months ended June 30, 2014	Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	1		$	—		$	1
Net investment income		33			1			34
Net investment gains (losses)		3			(6	)		(3	)
Insurance and investment product fees and other		52			1			53

Total revenues		89			(4	)		85

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		6			—			6
Interest credited		29			—			29
Acquisition and operating expenses, net of deferrals		20			13			33
Amortization of deferred acquisition costs and intangibles		10			—			10
Interest expense		1			82			83

Total benefits and expenses		66			95			161

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		23			(99	)		(76	)
Provision (benefit) for income taxes		5			(29	)		(24	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		18			(70	)		(52	)
Income from discontinued operations, net of taxes		—			4			4

NET INCOME (LOSS)		18			(66	)		(48	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(3	)		4			1
Income from discontinued operations, net of taxes		—			(4	)		(4	)

NET OPERATING INCOME (LOSS)	$	15		$	(66	)	$	(51	)


Effective tax rate (operating income (loss))		16.1	%		28.9	%		32.1	%

⁽¹⁾	Includes inter-segment eliminations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Six months ended June 30, 2015	Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	1		$	—		$	1
Net investment income		71			(6	)		65
Net investment gains (losses)		(14	)		14			—
Insurance and investment product fees and other		98			(10	)		88

Total revenues		156			(2	)		154

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		18			—			18
Interest credited		61			—			61
Acquisition and operating expenses, net of deferrals		40			19			59
Amortization of deferred acquisition costs and intangibles		15			1			16
Interest expense		1			149			150

Total benefits and expenses		135			169			304

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		21			(171	)		(150	)
Provision (benefit) for income taxes		5			(68	)		(63	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		16			(103	)		(87	)
Loss from discontinued operations, net of taxes		—			(313	)		(313	)

NET INCOME (LOSS)		16			(416	)		(400	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		4			(9	)		(5	)
Expenses related to restructuring, net		—			1			1
Loss from discontinued operations, net of taxes		—			313			313

NET OPERATING INCOME (LOSS)	$	20		$	(111	)	$	(91	)


Effective tax rate (operating income (loss))		26.2	%		39.4	%		40.3	%

Six months ended June 30, 2014	Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	2		$	—		$	2
Net investment income		65			(7	)		58
Net investment gains (losses)		(10	)		(11	)		(21	)
Insurance and investment product fees and other		105			1			106

Total revenues		162			(17	)		145

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		14			—			14
Interest credited		58			—			58
Acquisition and operating expenses, net of deferrals		40			23			63
Amortization of deferred acquisition costs and intangibles		21			1			22
Interest expense		1			164			165

Total benefits and expenses		134			188			322

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		28			(205	)		(177	)
Provision (benefit) for income taxes		5			(79	)		(74	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		23			(126	)		(103	)
Income from discontinued operations, net of taxes		—			13			13

NET INCOME (LOSS)		23			(113	)		(90	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		4			8			12
Income from discontinued operations, net of taxes		—			(13	)		(13	)

NET OPERATING INCOME (LOSS)	$	27		$	(118	)	$	(91	)


Effective tax rate (operating income (loss))		20.2	%		38.6	%		42.6	%

⁽¹⁾	Includes inter-segment eliminations.

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Net Operating Income—Runoff Segment

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	1		$	—		$	1		$	—		$	1		$	1		$	1		$	3
Net investment income		40			31			71			32			32			33			32			129
Net investment gains (losses)		(8	)		(6	)		(14	)		(23	)		(33	)		3			(13	)		(66	)
Insurance and investment product fees and other		49			49			98			51			53			52			53			209

Total revenues		82			74			156			60			53			89			73			275

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		11			7			18			10			13			6			8			37
Interest credited		31			30			61			31			30			29			29			119
Acquisition and operating expenses, net of deferrals		21			19			40			22			22			20			20			84
Amortization of deferred acquisition costs and intangibles		10			5			15			13			5			10			11			39
Interest expense		1			—			1			—			—			1			—			1

Total benefits and expenses		74			61			135			76			70			66			68			280

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		8			13			21			(16	)		(17	)		23			5			(5	)
Provision (benefit) for income taxes		2			3			5			(19	)		(5	)		5			—			(19	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		6			10			16			3			(12	)		18			5			14

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		3			1			4			13			17			(3	)		7			34

NET OPERATING INCOME	$	9		$	11		$	20		$	16		$	5		$	15		$	12		$	48


Effective tax rate (operating income)		25.7	%		26.7	%		26.2	%		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

SECOND QUARTER 2015

Net Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		—			(6	)		(6	)		2			(9	)		1			(8	)		(14	)
Net investment gains (losses)		3			11			14			4			9			(6	)		(5	)		2
Insurance and investment product fees and other		(10	)		—			(10	)		2			(3	)		1			—			—

Total revenues		(7	)		5			(2	)		8			(3	)		(4	)		(13	)		(12	)

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			—			—			—			—			—			—			—
Interest credited		—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		13			6			19			8			2			13			10			33
Amortization of deferred acquisition costs and intangibles		—			1			1			1			1			—			1			3
Interest expense		74			75			149			76			74			82			82			314

Total benefits and expenses		87			82			169			85			77			95			93			350

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(94	)		(77	)		(171	)		(77	)		(80	)		(99	)		(106	)		(362	)
Provision (benefit) for income taxes		(38	)		(30	)		(68	)		(18	)		5			(29	)		(50	)		(92	)

LOSS FROM CONTINUING OPERATIONS		(56	)		(47	)		(103	)		(59	)		(85	)		(70	)		(56	)		(270	)
Income (loss) from discontinued operations, net of taxes⁽²⁾		(314	)		1			(313	)		138			6			4			9			157

NET INCOME (LOSS)		(370	)		(46	)		(416	)		79			(79	)		(66	)		(47	)		(113	)
ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(2	)		(7	)		(9	)		(4	)		(6	)		4			4			(2	)
Expenses related to restructuring, net		1			—			1			—			—			—			—			—
Tax impact from potential business portfolio changes		—			—			—			31			—			—			—			31
(Income) loss from discontinued operations, net of taxes		314			(1	)		313			(138	)		(6	)		(4	)		(9	)		(157	)

NET OPERATING LOSS	$	(57	)	$	(54	)	$	(111	)	$	(32	)	$	(91	)	$	(66	)	$	(52	)	$	(241	)


Effective tax rate (operating loss)		42.1	%		36.2	%⁽³⁾		39.4	%		61.8	%		-1.5	%		28.9	%		47.7	%		34.0	%
⁽¹⁾Includes inter-segment eliminations. ⁽²⁾Operating results of the lifestyle protection insurance business presented as discontinued operations were as follows:
	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	168		$	180		$	348		$	173		$	184		$	199		$	174		$	730
Net investment income		20			22			42			22			28			21			29			100
Net investment gains (losses)		—			—			—			—			1			—			1			2
Insurance and investment product fees and other		2			(2	)		—			—			1			2			1			4

Total revenues		190			200			390			195			214			222			205			836

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		53			51			104			48			53			56			46			203
Acquisition and operating expenses, net of deferrals		105			113			218			107			113			122			105			447
Amortization of deferred acquisition costs and intangibles		24			26			50			28			30			30			30			118
Interest expense		6			9			15			11			10			9			15			45

Total benefits and expenses		188			199			387			194			206			217			196			813

INCOME BEFORE INCOME TAXES AND OTHER ITEMS		2			1			3			1			8			5			9			23
Provision (benefit) for income taxes		10			—			10			(137	)		2			1			—			(134	)

NET INCOME (LOSS)		(8	)		1			(7	)		138			6			4			9			157
Loss on sale, net of taxes		(306	)		—			(306	)		—			—			—			—			—

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES	$	(314	)	$	1		$	(313	)	$	138		$	6		$	4		$	9		$	157

⁽³⁾

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Investments Summary

(amounts in millions)


		June 30, 2015					March 31, 2015					December 31, 2014					September 30, 2014					June 30, 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		$	33,507		45	%	$	34,644		44	%	$	34,263		45	%	$	34,111		45	%	$	34,255		45	%
Private fixed maturity securities			10,877		14			10,962		14			11,034		14			10,934		15			11,053		15
Residential mortgage-backed securities⁽¹⁾			4,954		7			5,011		6			5,082		7			4,990		7			5,043		7
Commercial mortgage-backed securities			2,475		3			2,547		3			2,491		3			2,518		3			2,630		3
Other asset-backed securities			3,837		5			3,767		5			3,669		5			3,770		5			3,700		5
State and political subdivision			2,388		3			2,350		3			2,222		3			2,182		3			2,120		3
Non-investment grade fixed maturity securities			2,530		3			2,623		4			2,515		3			2,586		3			2,282		3
Equity securities:
Common stocks and mutual funds			62		—			134		—			187		—			214		—			219		—
Preferred stocks			237		1			165		—			88		—			92		—			94		—
Commercial mortgage loans			6,175		8			6,149		8			6,100		8			6,077		8			5,986		8
Restricted commercial mortgage loans related to securitization entities			181		—			188		—			201		—			209		—			217		—
Policy loans			1,584		2			1,506		2			1,501		2			1,512		2			1,514		2
Cash, cash equivalents and short-term investments			4,459		6			5,380		7			4,990		7			3,424		5			3,927		5
Securities lending			337		—			323		1			289		1			339		1			277		—
Other invested assets:	Limited partnerships		216		—			215		—			252		—			262		—			263		1
	Derivatives:
	Long-term care (LTC) forward starting swap—cash flow		423		1			948		1			639		1			252		—			197		—
	Other cash flow		8		—			9		—			6		—			10		—			20		—
	Equity index options—non-qualified		12		—			15		—			17		—			11		—			4		—
	Other non-qualified		416		—			512		1			470		—			391		1			395		1
	Trading portfolio		368		1			218		—			241		—			226		—			226		—
	Counterparty collateral		—		—			—		—			—		—			522		1			417		1
	Restricted other invested assets related to securitization entities		410		1			411		1			411		1			404		1			404		1
	Other		52		—			48		—			56		—			65		—			60		—

Total invested assets and cash		$	75,508		100	%	$	78,125		100	%	$	76,724		100	%	$	75,101		100	%	$	75,303		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	14,931		33	%	$	15,531		33	%	$	15,611		34	%	$	15,314		33	%	$	15,392		33	%
AA			4,773		11			4,858		11			4,741		10			4,821		11			4,913		11
A			13,441		30			13,845		30			13,645		30			13,550		30			13,181		29
BBB			10,590		23			10,721		23			10,498		23			10,625		23			11,017		24
BB			1,276		3			1,385		3			1,361		3			1,386		3			1,232		3
B			68		—			75		—			76		—			77		—			82		—
CCC and lower			99		—			108		—			112		—			114		—			112		—

Total public fixed maturity securities		$	45,178		100	%	$	46,523		100	%	$	46,044		100	%	$	45,887		100	%	$	45,929		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	1,646		11	%	$	1,514		10	%	$	1,569		10	%	$	1,550		10	%	$	1,596		11	%
AA			1,957		13			1,956		13			2,007		14			1,803		12			1,696		11
A			4,847		31			4,846		31			4,602		30			4,743		31			4,755		31
BBB			5,853		38			6,010		39			6,088		40			6,099		40			6,251		41
BB			973		6			910		6			792		5			835		5			720		5
B			101		1			127		1			95		1			95		1			57		—
CCC and lower			13		—			18		—			79		—			79		1			79		1

Total private fixed maturity securities		$	15,390		100	%	$	15,381		100	%	$	15,232		100	%	$	15,204		100	%	$	15,154		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

SECOND QUARTER 2015

Fixed Maturity Securities Summary

(amounts in millions)


	June 30, 2015					March 31, 2015					December 31, 2014					September 30, 2014					June 30, 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	$	5,721		9	%	$	6,132		10	%	$	6,000		10	%	$	5,642		9	%	$	5,483		9	%
State and political subdivision		2,389		4			2,351		4			2,222		4			2,183		4			2,120		3
Foreign government		1,970		3			1,853		3			1,920		3			1,828		3			1,904		3
U.S. corporate		25,151		42			25,820		42			25,236		41			25,017		41			24,966		41
Foreign corporate		13,797		23			14,103		23			14,263		23			14,743		24			14,828		24
Residential mortgage-backed securities		5,085		9			5,153		8			5,228		9			5,142		8			5,198		9
Commercial mortgage-backed securities		2,582		4			2,690		4			2,702		4			2,728		5			2,845		5
Other asset-backed securities		3,873		6			3,802		6			3,705		6			3,808		6			3,739		6

Total fixed maturity securities	$	60,568		100	%	$	61,904		100	%	$	61,276		100	%	$	61,091		100	%	$	61,083		100	%

Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	8,103		22	%	$	8,273		22	%	$	8,185		22	%	$	8,253		22	%	$	8,335		22	%
Utilities		4,580		12			4,798		13			4,694		13			5,194		14			4,676		13
Energy		4,416		12			4,564		12			4,531		12			3,982		11			4,569		12
Consumer—non-cyclical		4,525		12			4,631		12			4,602		12			4,598		12			4,639		12
Consumer—cyclical		2,337		6			2,373		6			2,358		6			2,362		6			2,322		6
Capital goods		2,450		7			2,429		7			2,423		7			2,354		6			2,373		6
Industrial		2,237		6			2,320		6			2,252		6			2,290		6			2,290		6
Technology and communications		3,120		9			3,104		8			3,037		8			3,084		8			2,995		8
Transportation		1,634		5			1,692		4			1,614		4			1,658		5			1,634		4
Other		3,374		9			3,522		10			3,748		10			3,865		10			4,153		11

Subtotal		36,776		100	%		37,706		100	%		37,444		100	%		37,640		100	%		37,986		100	%

Non-Investment Grade:
Finance and insurance		443		20	%		471		21	%		480		23	%		481		22	%		304		17	%
Utilities		67		3			67		3			83		5			100		5			57		3
Energy		408		19			363		16			261		13			291		14			278		15
Consumer—non-cyclical		257		12			262		12			229		11			211		10			217		12
Consumer—cyclical		99		5			117		5			91		4			71		3			54		3
Capital goods		234		11			236		11			214		10			292		14			298		17
Industrial		240		11			238		11			260		13			254		12			240		13
Technology and communications		337		15			364		16			354		17			358		17			318		18
Transportation		3		—			19		1			19		1			20		1			16		1
Other		84		4			80		4			64		3			42		2			26		1

Subtotal		2,172		100	%		2,217		100	%		2,055		100	%		2,120		100	%		1,808		100	%

Total	$	38,948		100	%	$	39,923		100	%	$	39,499		100	%	$	39,760		100	%	$	39,794		100	%

Fixed Maturity Securities—Contractual Maturity Dates:

Due in one year or less	$	2,069		3	%	$	1,870		3	%	$	2,060		3	%	$	2,406		4	%	$	2,563		4	%
Due after one year through five years		11,069		19			10,965		18			10,776		18			10,315		17			9,993		16
Due after five years through ten years		12,212		20			12,198		20			12,334		20			12,934		21			13,179		21
Due after ten years		23,678		39			25,226		41			24,471		40			23,758		39			23,566		39

Subtotal		49,028		81			50,259		82			49,641		81			49,413		81			49,301		80
Mortgage and asset-backed securities		11,540		19			11,645		18			11,635		19			11,678		19			11,782		20

Total fixed maturity securities	$	60,568		100	%	$	61,904		100	%	$	61,276		100	%	$	61,091		100	%	$	61,083		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

General Account GAAP Net Investment Income Yields

(amounts in millions)


	2015									2014
	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
GAAP Net Investment Income
Fixed maturity securities—taxable	$	645		$	632		$	1,277		$	658		$	643		$	658		$	639		$	2,598
Fixed maturity securities—non-taxable		3			3			6			3			3			3			3			12
Commercial mortgage loans		83			85			168			87			82			81			83			333
Restricted commercial mortgage loans related to securitization entities		3			4			7			3			3			4			4			14
Equity securities		4			4			8			3			3			4			4			14
Other invested assets		17			33			50			22			17			12			18			69
Limited partnerships		20			7			27			2			10			13			11			36
Restricted other invested assets related to securitization entities		1			1			2			2			1			1			1			5
Policy loans		35			33			68			34			32			32			31			129
Cash, cash equivalents and short-term investments		4			3			7			5			7			7			5			24

Gross investment income before expenses and fees		815			805			1,620			819			801			815			799			3,234
Expenses and fees		(22	)		(24	)		(46	)		(22	)		(23	)		(24	)		(23	)		(92	)

Net investment income	$	793		$	781		$	1,574		$	797		$	778		$	791		$	776		$	3,142

Annualized Yields
Fixed maturity securities—taxable		4.6	%		4.6	%		4.6	%		4.7	%		4.6	%		4.8	%		4.7	%		4.7	%
Fixed maturity securities—non-taxable		3.5	%		3.5	%		3.5	%		3.5	%		3.4	%		3.5	%		3.7	%		3.5	%
Commercial mortgage loans		5.4	%		5.6	%		5.5	%		5.7	%		5.4	%		5.5	%		5.6	%		5.6	%
Restricted commercial mortgage loans related to securitization entities		7.2	%		8.2	%		7.4	%		5.8	%		6.6	%		6.7	%		7.0	%		6.6	%
Equity securities		5.6	%		6.1	%		5.8	%		4.6	%		4.4	%		5.5	%		5.2	%		5.0	%
Other invested assets		24.2	%		60.6	%		38.0	%		37.1	%		27.7	%		18.7	%		26.3	%		27.3	%
Limited partnerships⁽¹⁾		37.0	%		12.0	%		23.7	%		3.1	%		15.3	%		19.6	%		16.1	%		13.6	%
Restricted other invested assets related to securitization entities		1.0	%		1.0	%		1.0	%		2.1	%		1.0	%		1.0	%		1.0	%		1.3	%
Policy loans		9.1	%		8.8	%		8.9	%		9.0	%		8.5	%		8.7	%		8.6	%		8.7	%
Cash, cash equivalents and short-term investments		0.3	%		0.2	%		0.3	%		0.5	%		0.8	%		0.7	%		0.5	%		0.6	%

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

Net investment income		4.5	%		4.5	%		4.5	%		4.6	%		4.5	%		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 62 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

SECOND QUARTER 2015

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

(amounts in millions)


	2015									2014
	2Q			1Q			Total			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			1			—			2			—			3
Foreign corporate		(1	)		(4	)		(5	)		1			2			13			(3	)		13
Foreign government		1			—			1			1			—			—			—			1
Tax-exempt		—			—			—			—			—			—			(1	)		(1	)
Mortgage-backed securities		1			—			1			—			(1	)		—			—			(1	)
Equity securities		8			5			13			1			2			6			1			10
Foreign exchange		—			1			1			—			—			1			—			1

Total net realized gains (losses) on available-for-sale securities		9			3			12			5			8			16			(12	)		17

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

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

Net unrealized gains (losses) on trading securities		(11	)		4			(7	)		10			3			5			8			26
Derivative instruments		4			(21	)		(17	)		(24	)		(25	)		(4	)		(14	)		(67	)
Limited partnerships		—			—			—			—			—			(1	)		—			(1	)
Commercial mortgage loans held-for-sale market valuation allowance		2			1			3			2			2			2			2			8
Contingent purchase price valuation change		—			—			—			—			(1	)		—			—			(1	)
Net gains (losses) related to securitization entities		1			5			6			1			(1	)		6			4			10

Net investment gains (losses), net of taxes		5			(10	)		(5	)		(6	)		(18	)		23			(13	)		(14	)
Adjustment for DAC and other intangible amortization and certain benefit reserves, net of taxes		5			4			9			1			6			1			1			9
Adjustment for net investment (gains) losses attributable to noncontrolling interests, net of taxes		(6	)		5			(1	)		1			2			(4	)		1			—

Net investment gains (losses), net	$	4		$	(1	)	$	3		$	(4	)	$	(10	)	$	20		$	(11	)	$	(5	)

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

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	(1,643	)	$	(1,274	)	$	(1,244	)	$	(276	)	$	676
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	10,958		$	11,288		$	11,532		$	11,770		$	11,833
GAAP Basis ROE^(1)/(2)		-15.0	%		-11.3	%		-10.8	%		-2.3	%		5.7	%

Operating ROE
Net operating income (loss) for the twelve months ended⁽¹⁾	$	(465	)	$	(430	)	$	(398	)	$	197		$	655
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	10,958		$	11,288		$	11,532		$	11,770		$	11,833
Operating ROE^(1)/(2)		-4.2	%		-3.8	%		-3.5	%		1.7	%		5.5	%

Quarterly Average ROE	Three months ended
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	(193	)	$	154		$	(760	)	$	(844	)	$	176
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	10,507		$	10,555		$	10,854		$	11,651		$	12,051
Annualized GAAP Quarterly Basis ROE^(3)/(4)		-7.3	%		5.8	%		-28.0	%		-29.0	%		5.8	%

Operating ROE
Net operating income (loss) for the period ended⁽³⁾	$	119		$	154		$	(415	)	$	(323	)	$	154
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	10,507		$	10,555		$	10,854		$	11,651		$	12,051
Annualized Operating Quarterly Basis ROE^(3)/(4)		4.5	%		5.8	%		-15.3	%		-11.1	%		5.1	%

Non-GAAP Definition for Operating ROE

The company references the non-GAAP financial measure entitled “operating return on equity” or “operating ROE.” The company defines operating ROE as 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

SECOND QUARTER 2015

Reconciliation of Core Yield


		2015									2014
	(Assets—amounts in billions)	2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	75.5		$	78.1		$	75.5		$	76.7		$	75.1		$	75.3		$	73.2		$	76.7
	Subtract:
	Securities lending		0.3			0.3			0.3			0.3			0.3			0.3			0.3			0.3
	Unrealized gains (losses)		4.9			7.8			4.9			6.6			5.3			5.5			4.2			6.6
	Derivative counterparty collateral		—			—			—			—			0.5			0.4			0.4			—

	Adjusted end of period invested assets and cash	$	70.3		$	70.0		$	70.3		$	69.8		$	69.0		$	69.1		$	68.3		$	69.8

(A)	Average Invested Assets and Cash Used in Reported Yield Calculation	$	70.2		$	69.9		$	70.1		$	69.4		$	69.1		$	68.7		$	68.2		$	68.9
	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			0.2			0.2

(B)	Average Invested Assets and Cash Used in Core Yield Calculation		70.0			69.7			69.9			69.2			68.9			68.5			68.0			68.7
	Subtract:
	Portfolios supporting floating products and non-recourse funding obligations⁽²⁾		3.6			3.7			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	$	66.4		$	66.0		$	66.2		$	65.3		$	64.9		$	64.3		$	63.7		$	64.6

	(Income—amounts in millions)

(D)	Reported—Net Investment Income	$	793		$	781		$	1,574		$	797		$	778		$	791		$	776		$	3,142
	Subtract:
	Bond calls and commercial mortgage loan prepayments		17			14			31			18			17			7			10			52
	Other non-core items⁽³⁾		(4	)		7			3			8			(22	)		8			(7	)		(13	)
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		2			3			5			2			3			3			3			11

(E)	Core Net Investment Income		778			757			1,535			769			780			773			770			3,092
	Subtract:
	Investment income from portfolios supporting floating products and non-recourse funding obligations⁽²⁾		26			20			46			21			22			23			21			87

(F)	Core Net Investment Income (excl. Floating and Non-Recourse Funding)	$	752		$	737		$	1,489		$	748		$	758		$	750		$	749		$	3,005


(D) / (A)	Reported Yield		4.52	%		4.47	%		4.49	%		4.59	%		4.50	%		4.61	%		4.55	%		4.56	%
(E) / (B)	Core Yield		4.45	%		4.34	%		4.40	%		4.45	%		4.53	%		4.51	%		4.53	%		4.50	%
(F) / (C)	Core Yield (excl. Floating and Non-Recourse Funding)		4.53	%		4.47	%		4.50	%		4.58	%		4.67	%		4.67	%		4.70	%		4.66	%

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

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2015

Financial Strength Ratings As Of August 3, 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

The S&P, Moody’s, A.M. Best, Fitch Rating Service (Fitch) and Dominion Bond Rating Service (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.

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

⁽²⁾	Genworth Financial Mortgage Insurance Company Canada is also rated “AA” by 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.

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Form 8-K GENWORTH FINANCIAL INC For: Aug 04

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