Form 8-K GENWORTH FINANCIAL INC For: Sep 20

Assets

Investments:

Fixed maturity securities available-for-sale, at fair value (amortized cost of $53,111 and allowance for credit losses of $—)

Equity securities, at fair value

Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4)

Less: Allowance for credit losses

Commercial mortgage loans, net

Policy loans

Other invested assets

Total investments

Cash, cash equivalents and restricted cash

Accrued investment income

Deferred acquisition costs

Intangible assets

Reinsurance recoverable

Less: Allowance for credit losses

Reinsurance recoverable, net

Other assets

Deferred tax asset

Separate account assets

Total assets

Liabilities and equity

Liabilities:

Future policy benefits

Policyholder account balances

Liability for policy and contract claims

Unearned premiums

Other liabilities

Long-term borrowings

Separate account liabilities

Liabilities related to discontinued operations

Total liabilities

Commitments and contingencies

Equity:

Class A common stock, $0.001 par value; 1.5 billion shares authorized; 596 million shares issued; 508 million shares outstanding

Additional paid-in capital

Accumulated other comprehensive income (loss)

Retained earnings

Treasury stock, at cost (88 million shares)

Total Genworth Financial, Inc.’s stockholders’ equity

Noncontrolling interests

Total equity

Total liabilities and equity

Adjustments reflect the impact from the Offering of 29,962,560 common shares of Enact Holdings completed on September 20, 2021. Following completion of the Offering, the Company beneficially owns approximately 81.6% of the common shares of Enact Holdings.

Adjustment reflects the net proceeds of approximately $529 million received by the Company in conjunction with the completion of the Offering. Net proceeds received from the Offering after underwriter fees were $535 million, before other fees and expenses that are estimated to be approximately $6 million. Adjustment assumes a portion of the net proceeds received from the Offering were used to make a Note Prepayment of approximately $177 million to AXA. The Note Prepayment is a contractual obligation of the Company paid in accordance with a provision of a secured promissory note due to AXA. The Company assumes, for purposes of the unaudited pro forma condensed consolidated balance sheet, that all expenses and the Note Prepayment were paid in cash on June 30, 2021.

Adjustment represents a change in deferred taxes for the 18.4% noncontrolling interests in Enact Holdings reflected in connection with the Offering.

Adjustment assumes the Note Prepayment of approximately $177 million paid to AXA. A secured promissory note issued to AXA contains an amended provision that requires prepayment upon the Company, or Genworth Holdings, receiving net cash proceeds in excess of $352 million from a qualifying equity issuance from Enact Holdings.

The Offering resulted in a decrease in the Company’s ownership of Enact Holdings without a loss of control, accordingly the Offering was accounted for as an equity transaction with no gain or loss recognized through earnings. The adjustment reflects the difference between the net proceeds received, less 18.4% ownership interest attributable to noncontrolling interests in Enact Holdings’ equity, including accumulated other comprehensive income (loss), and deferred taxes.

Adjustment represents the 18.4% noncontrolling interests in Enact Holdings’ net unrealized investment gains reflected in connection with the Offering.

Adjustment represents the 18.4% ownership interest attributable to noncontrolling interests in Enact Holdings’ equity reflected in connection with the Offering.

Revenues:

Premiums

Net investment income

Net investment gains (losses)

Policy fees and other income

Total revenues

Benefits and expenses:

Benefits and other changes in policy reserves

Interest credited

Acquisition and operating expenses, net of deferrals

Amortization of deferred acquisition costs and intangibles

Interest expense

Total benefits and expenses

Income from continuing operations before income taxes

Provision for income taxes

Income from continuing operations

Income from discontinued operations, net of taxes

Net income

Less: net income from continuing operations attributable to noncontrolling interests

Less: net income from discontinued operations attributable to noncontrolling interests

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

Net income available to Genworth Financial, Inc.’s common stockholders:

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders

Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders

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

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

Basic

Diluted

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

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted

Revenues:

Premiums

Net investment income

Net investment gains (losses)

Policy fees and other income

Total revenues

Benefits and expenses:

Benefits and other changes in policy reserves

Interest credited

Acquisition and operating expenses, net of deferrals

Amortization of deferred acquisition costs and intangibles

Goodwill impairment

Interest expense

Total benefits and expenses

Income from continuing operations before income taxes

Provision for income taxes

Income from continuing operations

Loss from discontinued operations, net of taxes

Net income

Less: net income from continuing operations attributable to noncontrolling interests

Less: net income from discontinued operations attributable to noncontrolling interests

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

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

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders

Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders

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

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

Basic

Diluted

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

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted

Adjustment reflects the impact from the Offering of 29,962,560 common shares of Enact Holdings completed on September 20, 2021. Following completion of the Offering, the Company beneficially owns approximately 81.6% of the common shares of Enact Holdings.

Adjustment represents a reduction in interest expense reported as discontinued operations resulting from an assumed Note Prepayment of approximately $177 million paid to AXA. The Company assumes, for purposes of the unaudited pro forma condensed consolidated statements of income, that the Note Prepayment was paid on January 1, 2020. There was no adjustment reflected for the six months ended June 30, 2021 due to a mandatory principal payment of approximately $245 million resulting from the sale of Genworth Mortgage Insurance Australia Limited (“Genworth Australia”), a previous majority owned subsidiary of the Company. The mandatory principal payment made in connection with the Genworth Australia sale retroactively reduced the interest rate on the promissory note to 2.75%, which resulted in no amounts recognized for interest expense reported as discontinued operations for the six months ended June 30, 2021.

Adjustment represents 18.4% of Enact Holdings’ net income attributable to noncontrolling interests for the six months ended June 30, 2021 and the year ended December 31, 2020 reflected in connection with the Offering.