Form 8-K GENWORTH FINANCIAL INC For: Apr 28

April 28, 2016 5:15 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

April 28, 2016

Date of Report

(Date of earliest event reported)

LOGO

GENWORTH FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-32195

80-0873306

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)


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

(804) 281-6000

(Registrant’s telephone number, including area code)

N/A

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

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

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

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

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

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

Item 2.02

Results of Operations and Financial Condition.

On April 28, 2016, Genworth Financial, Inc. issued (1) a press release announcing its financial results for the quarter ended March 31, 2016, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (2) a financial supplement for the quarter ended March 31, 2016, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

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

Item 9.01

Financial Statements and Exhibits.

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


Exhibit Number		Description of Exhibit

99.1		Press Release dated April 28, 2016.

99.2		Financial Supplement for the quarter ended March 31, 2016.

SIGNATURES

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


	GENWORTH FINANCIAL, INC.

Date: April 28, 2016	By:	/s/ Matthew D. Farney
		Matthew D. Farney
		Vice President and Controller
		(Principal Accounting Officer)

Exhibit Index


Exhibit Number		Description of Exhibit

99.1		Press Release dated April 28, 2016.

99.2		Financial Supplement for the quarter ended March 31, 2016.

Exhibit 99.1

LOGO

Genworth Financial Announces First Quarter 2016 Results

Net Operating Income Of $0.21 Per Share And Net Income Of $0.11 Per Share

Both Impacted By Litigation Settlement & Legal Expenses

•

Solid Loss Ratio Performance And Maintained Strong Capital Positions In U.S., Canada & Australia Mortgage Insurance (MI) Businesses

•

Progress Made On U.S. Life Insurance Restructuring Plan:

•

Sales Suspended For Traditional Life Insurance And Fixed Annuity Products

•

Cash Expenses Reduced By Approximately $135 Million Pre-Tax On An Annualized Basis

•

Additional Steps Taken Toward Repatriation Of Bermuda Subsidiary

•

Progress Made On Isolation Of Long Term Care Insurance (LTC) Business With Successful Completion Of Bond Consent Solicitation

•

Net Income¹ And Net Operating Income² Include Litigation Settlement And Legal Expenses Of $0.11 Per Diluted Share

•

Holding Company Debt Reduction Of $326 Million

Richmond, VA (April 28, 2016) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the period ended March 31, 2016. The company reported net income of $53 million, or $0.11 per diluted share, in the first quarter of 2016, compared with net income of $154 million, or $0.31 per diluted share, in the first quarter of 2015. Net operating income for the first quarter of 2016 was $103 million, or $0.21 per diluted share, compared with net operating income of $154 million, or $0.31 per diluted share, in the first quarter of 2015. Net income and net operating income in the quarter included $54 million after-tax, or $0.11 per diluted share, of litigation settlement and legal expenses.

Strategic Update

On February 4, 2016, the company announced a restructuring plan for its U.S. life insurance businesses to: (1) suspend sales of its traditional life insurance and fixed annuity products; (2) further reduce expense levels in

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.

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.

2016; (3) repatriate existing business from Brookfield Life and Annuity Insurance Company Limited (BLAIC), its primary Bermuda domiciled reinsurance subsidiary, to its U.S. life insurance companies in 2016; and (4) separate and potentially isolate its LTC business. The company made progress on this plan in the quarter including:

•

Suspending all sales of traditional life insurance and fixed annuity products on March 7, 2016;

•

Reducing cash expenses by approximately $135 million pre-tax on an annualized basis. The company still expects to achieve total expected annualized cash expense reductions of $150 million or more by the end of the second quarter of 2016;

•

Recapturing a block of universal life insurance business from BLAIC to the U.S. life insurance companies, effective April 1, 2016, representing an additional step completed toward the repatriation of BLAIC; and

•

Successfully completing a bond consent solicitation providing additional strategic and financial flexibility and demonstrating progress toward the isolation of the LTC business.

In January 2016, the company completed the sale of certain blocks of term life insurance to Protective Life Insurance Company. This transaction is expected to generate capital in excess of $150 million in aggregate to Genworth, including an anticipated tax payment of approximately $175 million to the holding company that is scheduled to be settled in July 2016 and is committed to be used to facilitate the separation and potential isolation of the LTC business.

During the fourth quarter of 2015, the company announced it had entered into an agreement to sell its European mortgage insurance business to AmTrust Financial Services, Inc., which is currently expected to result in net proceeds of approximately $50 million to the U.S. MI business. The transaction is now expected to close in the second quarter of 2016 and is subject to customary conditions, including requisite regulatory approvals.

“We are pleased with the continued strong performance of our MI businesses and improved results in our U.S. life insurance businesses during the quarter,” said Tom McInerney, President and CEO. “We also enhanced our strategic and financial flexibility by proactively reducing holding company debt, successfully completing a bond consent solicitation and making progress on our U.S. life insurance restructuring plan.”


Consolidated Net Income &Net Operating Income
	Three months ended March 31 (Unaudited)
	Three months ended March 31 (Unaudited)
	2016				2015
			Per				Per
			diluted				diluted		Total
(Amounts in millions, except per share)	Total		share		Total		share		% change

Net income available to Genworth’s common stockholders	$	53	$	0.11	$	154	$	0.31		(66	)%
Net operating income	$	103	$	0.21	$	154	$	0.31		(33	)%
Weighted average diluted shares		499.4				498.9

	Three months ended March 31
	(Unaudited)
	2016				2015
Book value per share			$	28.19			$	30.81
Book value per share, excluding accumulated other comprehensive income (loss)			$	19.80			$	21.38

In the first quarter of 2016, net income was primarily impacted by a net after-tax loss of $11 million related to the early extinguishment of Genworth Holdings’ senior notes, an after-tax loss of $6 million from a life block transaction, an after-tax expense of $9 million related to restructuring costs and after-tax fees incurred related to the bond consent solicitation of $12 million.

Net income was also impacted by net investment losses, net of taxes and other adjustments, of $13 million in the quarter, compared to $1 million in the prior year. Total impairments, net of tax, were $7 million in the quarter, compared to $2 million in the prior year.

Net investment income increased to $789 million in the quarter, compared to $781 million in both the prior quarter and prior year primarily from favorable prepayment speed adjustments related to residential mortgage-backed securities. The reported yield for the current quarter was 4.51 percent. The core yield² was 4.36 percent, up slightly from the prior quarter.

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


Net Operating Income (Loss) (Amounts in millions)	Q1 16			Q4 15			Q1 15
U.S. Mortgage Insurance	$	61		$	41		$	52
Canada Mortgage Insurance		33			37			40
Australia Mortgage Insurance		19			22			30
U.S. Life Insurance		91			(135	)		81
Runoff		4			11			11
Corporate and Other		(105	)		(58	)		(60	)

Total Net Operating Income (Loss)	$	103		$	(82	)	$	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.

Unless specifically noted in the discussion of results for the MI businesses in Canada and Australia, references to percentage changes exclude the impact of translating foreign denominated activity into U.S. dollars (foreign exchange). Percentage changes, which include the impact of foreign exchange, are found in a table at the end of this press release. The impact of foreign exchange on results in the first quarter of 2016 was an unfavorable $6 million and $3 million versus the prior year in the MI businesses in Canada and Australia, respectively.

U.S. Mortgage Insurance


Operating Metrics
(Dollar amounts in millions)	Q1 16			Q4 15			Q1 15
Net operating income	$	61		$	41		$	52
New insurance written
Primary Flow	$	7,400		$	7,800		$	6,300
Loss ratio		24	%		39	%		33	%

U.S. MI net operating income was $61 million, compared with $41 million in the prior quarter and $52 million in the prior year. The loss ratio in the current quarter was 24 percent, down 15 points sequentially from a seasonal decrease in new delinquencies, favorable net cures and aging of existing delinquencies and the continued growth in insurance in force resulting in higher earned premiums. The loss ratio was down nine points from the prior year primarily reflecting the continued decline in delinquencies from the 2005 to 2008 book years. Results versus the prior year also reflected lower net investment income, primarily related to the affiliated preferred securities that were exchanged with the holding company in July 2015.

Flow new insurance written (NIW) of $7.4 billion decreased five percent from the prior quarter from a seasonally smaller purchase originations market but increased 17 percent versus the prior year primarily from a larger purchase originations market and growth in market share. During the first quarter of 2016, the company’s concentration of single premium flow NIW was slightly higher than the prior quarter, and modestly lower than the prior year as it continues its selective participation in this market. Future volumes of its single premium products will vary in part depending on the company’s evaluation of the risk return profile of these products.

Canada Mortgage Insurance


Operating Metrics
(Dollar amounts in millions)	Q1 16			Q4 15			Q1 15
Net operating income	$	33		$	37		$	40
New insurance written
Flow	$	2,500		$	4,700		$	3,300
Bulk	$	3,200		$	7,300		$	5,000
Loss ratio		24	%		23	%		22	%

Canada MI reported net operating income of $33 million versus $37 million in the prior quarter and $40 million in the prior year. The loss ratio in the quarter was 24 percent, up one point from the prior quarter and up two points compared to the prior year primarily driven by an increase in new delinquencies, net of cures, primarily from experience in Alberta. Results versus the prior year included unfavorable foreign exchange of $6 million and higher expenses, partially offset by higher premiums.

Flow NIW was down 45 percent³ sequentially primarily from a seasonally smaller originations market and down 12 percent³ from the prior year primarily from targeted underwriting changes and a slowing housing market in oil producing regions. In addition, the company completed several bulk transactions in the quarter of approximately $3.2 billion, consisting of low loan-to-value prime loans.

Australia Mortgage Insurance


Operating Metrics
(Dollar amounts in millions)	Q1 16			Q4 15			Q1 15
Net operating income	$	19		$	22		$	30
New insurance written
Flow	$	4,400		$	4,600		$	5,800
Loss ratio		26	%		17	%		15	%

Australia MI reported net operating income of $19 million versus $22 million in the prior quarter and $30 million in the prior year. The loss ratio in the quarter was 26 percent, up nine points sequentially and up 11 points from the prior year. Sequentially, aging of existing delinquencies was unfavorable and new delinquencies were up 12 percent from normal seasonal variation, primarily from Queensland and Western Australia. Results in the prior year included an accrual for expected recoveries relating to paid claims, favorably impacting the loss ratio in the prior year by nine points. Results versus the prior year were impacted by an unfavorable $7 million related to the company’s further sell down of approximately 14 percent of its ownership in the Australia MI business in May 2015 and $3 million of unfavorable foreign exchange.

Flow NIW was down four percent³ sequentially and down 16 percent³ from the prior year from a smaller high loan-to-value originations market primarily driven by regulatory focus on the market and tightened lender risk appetite as well as the impact from the termination of a customer contract in the second quarter of 2015.

³	Percent change excludes the impact of foreign exchange.

U.S. Life Insurance


Operating Metrics
(Amounts in millions)	Q1 16		Q4 15			Q1 15
Net operating income (loss)
Long Term Care Insurance	$	34	$	19		$	10
Life Insurance		31		(173	)		40
Fixed Annuities		26		19			31

Total U.S. Life Insurance	$	91	$	(135	)	$	81

Sales
Long Term Care Insurance
Individual	$	5	$	8		$	10
Group		2		2			1
Life Insurance
Term Life		5		6			9
Universal Life		2		3			4
Linked Benefits		2		1			4
Fixed Annuities		168		314			326

Long Term Care Insurance

LTC had net operating income of $34 million, compared with $19 million in the prior quarter and $10 million in the prior year. Results versus the prior quarter reflected favorable experience driven by seasonally higher terminations. The current quarter also reflected a $4 million after-tax unfavorable correction to the calculation for reduced benefit options, partially offset by lower expenses. Results versus the prior year reflected a more favorable benefit from rate actions, partially offset by less favorable experience driven by lower terminations and higher severity given the mix of new claims with a higher average reserve. Prior quarter results included $10 million of after-tax favorable items. Prior year results included $7 million of after-tax unfavorable items. The loss ratio in the current quarter was approximately 68 percent. Individual LTC sales were $5 million in the quarter.

Life Insurance

Life insurance had net operating income of $31 million, compared with a net operating loss of $173 million in the prior quarter and net operating income of $40 million in the prior year. Results in the quarter reflected favorable prepayment speed adjustments related to residential mortgage-backed securities. Results in the prior quarter included an after-tax charge of $194 million related to the company’s annual review of life assumptions. Life insurance sales were $9 million in the quarter.

Fixed Annuities

Fixed annuities net operating income was $26 million, compared with $19 million in the prior quarter and $31 million in the prior year. Results in the quarter reflected favorable impacts from single premium immediate annuity mortality experience versus the prior quarter, but less favorable versus the prior year. Sales in the quarter totaled $168 million.

Runoff

Runoff net operating income was $4 million, compared with $11 million in the prior quarter and the prior year reflecting less favorable equity market performance versus both the prior quarter and prior year.

Corporate And Other

Corporate and Other net operating loss was $105 million, compared with $58 million in the prior quarter and $60 million in the prior year. Results in the current quarter included expenses of $54 million after-tax related to litigation settlement and legal expenses.

Capital & Liquidity

Genworth maintains solid capital positions in its operating subsidiaries.


Key Capital & Liquidity Metrics
(Dollar amounts in millions)	Q1 16			Q4 15			Q1 15
U.S. MI
Consolidated Risk-To-Capital Ratio⁴		15.3:1			16.3:1			14.1:1
Genworth Mortgage Insurance Corporation Risk-To-Capital Ratio⁴		15.5:1			16.4:1			13.8:1
Private Mortgage Insurer Eligibility Requirements (PMIERs) Sufficiency Ratio⁵		113	%		109	%		N/A
Canada MI
Minimum Capital Test (MCT) Ratio⁴		234	%		234	%		233	%
Australia MI
Prescribed Capital Amount (PCA) Ratio⁴		168	%		159	%		163	%
U.S. Life Insurance Companies
Consolidated Risk-Based Capital (RBC) Ratio⁴		390	%		393	%		453	%
Unassigned Surplus⁴	$	(330	)	$	(329	)	$	138
Holding Company Cash⁶ and Liquid Assets⁷	$	760		$	1,374		$	1,070

Key Points

•

U.S. MI compliant with the PMIERs with a buffer as of March 31, 2016;

•

Canada and Australia continue to maintain solid capital ratios in excess of management targets;

•

U.S. life insurance companies’ unassigned surplus and RBC ratio were both in line with the prior quarter as favorable fixed annuities performance was offset by the impact of lower interest rates on variable annuity products and the life block transaction completed in the quarter. RBC ratio also reflected unfavorable credit migration;

•

The holding company ended the quarter with approximately $760 million of cash and liquid assets, representing a buffer of approximately $300 million in excess of one and a half times annual debt service and restricted cash. The holding company continues to target maintaining cash balances of at least one and a half times its annual debt service expense plus a risk buffer of $350 million, but may go below the target level at times to proactively address liabilities;

•

Holding company cash and liquid assets decreased from the prior quarter from $345 million utilized to reduce Genworth Holdings’ debt, $71 million of net other items and expenses, $69 million paid toward

⁴	Company estimate for the first quarter of 2016, due to timing of the filing of statutory statements.

⁵	Calculated as available assets divided by required assets as defined within PMIERs. Company estimate for the first quarter of 2016.

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 $760 million, $1,124 million and $820 million, respectively, and U.S. government bonds of zero, $250 million and $250 million, respectively, as of March 31, 2016, December 31, 2015, and March 31, 2015.

the litigation settlement, an increase in cash margin posted for hedges of $67 million, $61 million paid for debt interest expense, and $61 million of fees paid related to the bond consent solicitation, partially offset by $60 million of dividends from the operating subsidiaries; and

•

In March, the Australia business announced a capital reduction initiative for shareholders of A$202 million, subject to shareholder approval.

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.

From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the “Investors” section of genworth.com. From time to time, Genworth’s publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found at http://genworth.ca and http://www.genworth.com.au.

Conference Call and Financial Supplement Information

This press release and the first quarter 2016 financial supplement are now posted on the company’s website. Additional information regarding business results and strategic update will be posted on the company’s website, http://investor.genworth.com, by 7:30 a.m. on April 29, 2016. Investors are encouraged to review these materials.

Genworth will conduct a conference call on April 29, 2016 at 8:00 a.m. (ET) to discuss business results and provide a progress 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 # 6410174. To participate in the call by webcast, register at http://investor.genworth.com at least 15 minutes prior to the webcast to download and install any necessary software.

Replays of the call will be available through May 13, 2016 at 888 203.1112 or 719 457.0820 (outside the U.S.); conference ID # 6410174. The webcast will also be archived on the company’s website.

Use of Non-GAAP Measures

This press release includes the non-GAAP financial measures entitled “net operating income (loss)” and “net operating income (loss) per common share.” Net operating income (loss) per common 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 January 2016, the company paid a make-whole expense of $13 million, net of taxes, related to the early redemption of Genworth Holdings, Inc.’s 2016 notes. The company also repurchased $28 million principal amount of Genworth Holdings, Inc.’s notes with various maturity dates for a gain of $2 million, net of taxes, in the first quarter of 2016. These transactions were excluded from net operating income (loss) for the periods presented as they related to a gain (loss) on the early extinguishment of debt.

In the first quarter of 2016, the company recorded an after-tax expense of $9 million 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 fourth quarter of 2015, the company also recorded an after-tax expense of $3 million related to restructuring costs.

There were no infrequent or unusual items excluded from net operating income (loss) during the periods presented other than fees incurred during the first quarter of 2016 related to Genworth Holdings, Inc.’s bond consent solicitation of $12 million, net of taxes, for broker, advisor and investment banking fees.

The tables at the end of this press release reflect net operating income (loss) as determined in accordance with accounting guidance related to segment reporting, and a reconciliation of net operating income (loss) of the company’s segments and Corporate and Other activities to net income (loss) available to Genworth’s common stockholders for the three months ended March 31, 2016 and 2015, as well as for the three months ended December 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 DAC 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.

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 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 mortgage insurance businesses, 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. 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. 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. In Australia, the company has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100 percent coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used

when applying the factor. The company considers insurance in force and risk in force to be measures of 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:

•

strategic risks including: the company’s inability to successfully execute strategic plans to effectively address its current business challenges (including with respect to the restructuring of the U.S. life insurance businesses, cost savings, ratings and capital), the company’s inability to complete the planned sale of its European mortgage 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; failure to obtain any required regulatory, stockholder and/or noteholder approvals or consents, or its challenges changing or being more costly or difficult to successfully address than currently anticipated or the benefits achieved being less than anticipated; inability to achieve anticipated cost-savings in a timely manner; or adverse tax or accounting charges; and inability to increase the capital needed in its 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;

•

risks relating to estimates, assumptions and valuations including: inadequate reserves and the need to increase reserves (including as a result of any changes the company may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews); inaccurate models; deviations from its estimates and actuarial assumptions or other reasons in the long term care insurance, life insurance and/or annuity businesses; accelerated amortization of deferred acquisition costs (DAC) and present value of future profits (PVFP) (including as a result of any changes the company may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews); 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 long term care insurance business); and changes in valuation of fixed maturity, equity and trading securities;

•

risks relating to economic, market and political conditions including: downturns and volatility in global economies and equity and credit markets; interest rates and changes in rates; deterioration in economic conditions or a decline in home prices that adversely affect the company’s loss experience in mortgage insurance; political and economic instability or changes in government policies; and fluctuations in foreign currency exchange rates and international securities markets;

•

regulatory and legal risks including: extensive regulation of the company’s businesses and changes in applicable laws and regulations; litigation and regulatory investigations or other actions, including not receiving court approval of the planned settlement of In re Genworth Financial, Inc. Securities Litigation; dependence on dividends and other distributions from the company’s subsidiaries (particularly its 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 its subsidiaries and insurance, regulatory or corporate law restrictions (including the unwillingness or inability of the subsidiary that indirectly owns most of the 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 capital support for certain long term care insurance related reinsurance arrangements); adverse change in regulatory requirements, including risk-based capital; changes in regulations adversely affecting the company’s international operations; inability to meet or maintain the PMIERs; inability of the U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements and hazardous financial condition

standards; 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; adverse changes in regulations affecting the mortgage insurance businesses; inability to continue to implement actions to mitigate the impact of statutory reserve requirements; impact of additional regulations pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act); and changes in accounting and reporting standards;

•

liquidity, financial strength ratings, credit and counterparty risks including: insufficient internal sources to meet liquidity needs and limited or no access to capital (including the company’s inability to replace the company’s credit facility); recent or future adverse rating agency actions, including with respect to rating downgrades or potential downgrades, or being put on review for potential downgrade, all of which could have adverse implications for the company, including with respect to key business relationships, product offerings, business results of operations, financial condition and capital needs, strategic plans, collateral obligations and availability and terms of hedging, reinsurance and borrowings; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of the company’s fixed maturity securities portfolio; and defaults on the company’s commercial mortgage loans or the mortgage loans underlying its investments in commercial mortgage-backed securities and volatility in performance;

•

operational risks including: inability to retain, attract and motivate qualified employees or senior management; ineffective or inadequate risk management in identifying, controlling or mitigating risks; reliance on, and loss of, key customer or distribution relationships; availability, affordability and adequacy of reinsurance to protect the company against losses; competition; competition in the mortgage insurance businesses from government and government-owned and government-sponsored enterprises (GSEs) offering mortgage insurance; material weakness in, or ineffective, internal control over financial reporting; and failure or any compromise of the security of the company’s computer systems, disaster recovery systems and business continuity plans and failures to safeguard, or breaches of, its confidential information;

•

insurance and product-related risks including: the company’s inability to increase 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 and as may be required from time to time in the future (including as a result of the 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; failure to sufficiently increase new sales for the long term care insurance products; inability to realize anticipated benefits of the rescissions, curtailments, loan modifications or other similar programs in the mortgage insurance businesses; premiums for the significant portion of the 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; decreases in the volume of high loan-to-value mortgage originations or increases in mortgage insurance cancellations; increases in the use of alternatives to private mortgage insurance and reductions in the level of coverage selected; potential liabilities in connection with the U.S. contract underwriting services; and medical advances, such as genetic research and diagnostic imaging, and related legislation that impact policyholder behavior in ways adverse to the company;

•

other risks including: occurrence of natural or man-made disasters or a pandemic; impairments of or valuation allowances against the company’s deferred tax assets; 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 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: the continued suspension of payment of dividends; and 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:		David Rosenbaum, 804 662.2643

		[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 March 31,
	2016			2015
Revenues:
Premiums	$	794		$	1,143
Net investment income		789			781
Net investment gains (losses)		(19	)		(16	)
Policy fees and other income		221			227

Total revenues		1,785			2,135

Benefits and expenses:
Benefits and other changes in policy reserves		860			1,192
Interest credited		177			180
Acquisition and operating expenses, net of deferrals		394			267
Amortization of deferred acquisition costs and intangibles		99			95
Interest expense		105			107

Total benefits and expenses		1,635			1,841

Income from continuing operations before income taxes		150			294
Provision for income taxes		23			91

Income from continuing operations		127			203
Income (loss) from discontinued operations, net of taxes		(19	)		1

Net income		108			204
Less: net income attributable to noncontrolling interests		55			50

Net income available to Genworth Financial, Inc.’s common stockholders	$	53		$	154


Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share:
Basic	$	0.14		$	0.31

Diluted	$	0.14		$	0.31

Net income available to Genworth Financial, Inc.’s common stockholders per common share:
Basic	$	0.11		$	0.31

Diluted	$	0.11		$	0.31

Weighted-average shares outstanding:
Basic		498.0			497.0

Diluted		499.4			498.9

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

(Amounts in millions, except per share amounts)


	Three months ended March 31,						Three months ended December 31,
	2016			2015			2015
Net operating income (loss):
U.S. Mortgage Insurance segment	$	61		$	52		$	41
Canada Mortgage Insurance segment		33			40			37
Australia Mortgage Insurance segment		19			30			22
U.S. Life Insurance segment:
Long Term Care Insurance		34			10			19
Life Insurance		31			40			(173	)
Fixed Annuities		26			31			19

Total U.S. Life Insurance segment		91			81			(135	)

Runoff segment		4			11			11
Corporate and Other		(105	)		(60	)		(58	)

Net operating income (loss)		103			154			(82	)
Adjustments to net operating income (loss):
Net investment gains (losses), net (see below for reconciliation)		(13	)		(1	)		—
Gains (losses) on sale of business, net		20			—			(134	)
Gains (losses) on early extinguishment of debt, net		(11	)		—			—
Gains (losses) from life block transactions, net		(6	)		—			—
Expenses related to restructuring, net		(9	)		—			(3	)
Fees associated with bond consent solicitation, net		(12	)		—			—

Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders		72			153			(219	)
Net income attributable to noncontrolling interests		55			50			52

Income (loss) from continuing operations		127			203			(167	)
Income (loss) from discontinued operations, net of taxes		(19	)		1			(73	)

Net income (loss)		108			204			(240	)
Less: net income attributable to noncontrolling interests		55			50			52

Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	53		$	154		$	(292	)


Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share:
Basic	$	0.11		$	0.31		$	(0.59	)

Diluted	$	0.11		$	0.31		$	(0.59	)

Net operating income (loss) per common share:
Basic	$	0.21		$	0.31		$	(0.17	)

Diluted	$	0.21		$	0.31		$	(0.17	)

Weighted-average shares outstanding:
Basic		498.0			497.0			497.6

Diluted⁸		499.4			498.9			497.6


Reconciliation of net investment gains (losses):
Net investment gains (losses), gross	$	(19	)	$	(16	)	$	(16	)
Adjustments for:
Deferred acquisition costs and other intangible amortization and certain benefit reserves		9			6			12
Net investment gains (losses) attributable to noncontrolling interests		(9	)		7			3
Taxes		6			2			1

Net investment gains (losses), net of taxes and other adjustments	$	(13	)	$	(1	)	$	—

⁸

Condensed Consolidated Balance Sheets

(Amounts in millions)


	March 31, 2016			December 31, 2015
Assets
Cash, cash equivalents and invested assets	$	76,728		$	75,746
Deferred acquisition costs		4,235			4,398
Intangible assets and goodwill		291			357
Reinsurance recoverable		17,587			17,245
Deferred tax and other assets		577			675
Separate account assets		7,624			7,883
Assets held for sale		131			127

Total assets	$	107,173		$	106,431

Liabilities and equity
Liabilities:
Future policy benefits	$	36,776		$	36,475
Policyholder account balances		26,354			26,209
Liability for policy and contract claims		8,177			8,095
Unearned premiums		3,378			3,308
Deferred tax and other liabilities		4,045			3,028
Borrowings related to securitization entities		173			179
Non-recourse funding obligations		310			1,920
Long-term borrowings		4,232			4,570
Separate account liabilities		7,624			7,883
Liabilities held for sale		131			127

Total liabilities		91,200			91,794

Equity:
Common stock		1			1
Additional paid-in capital		11,952			11,949

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		2,043			1,236
Net unrealized gains (losses) on other-than-temporarily impaired securities		14			18

Net unrealized investment gains (losses)		2,057			1,254

Derivatives qualifying as hedges		2,302			2,045
Foreign currency translation and other adjustments		(174	)		(289	)

Total accumulated other comprehensive income (loss)		4,185			3,010
Retained earnings		617			564
Treasury stock, at cost		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		14,055			12,824
Noncontrolling interests		1,918			1,813

Total equity		15,973			14,637

Total liabilities and equity	$	107,173		$	106,431

Impact of Foreign Exchange on Operating Results⁹

Three months ended March 31, 2016


	Percentages Including Foreign Exchange			Percentages Excluding Foreign Exchange¹⁰

Canada Mortgage Insurance (MI):
Flow new insurance written		(24	)%		(12	)%
Flow new insurance written (1Q16 vs. 4Q15)		(47	)%		(45	)%

Australia MI:
Flow new insurance written		(24	)%		(16	)%
Flow new insurance written (1Q16 vs. 4Q15)		(4	)%		(4	)%

⁹	All percentages are comparing the first quarter of 2016 to the first quarter of 2015 unless otherwise stated.

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

Reconciliation of Core Yield to Reported Yield


(Assets - amounts in billions)	Three months ended March 31, 2016
Reported Total Invested Assets and Cash	$	76.0
Subtract:
Securities lending		0.4
Unrealized gains (losses)		6.3

Adjusted end of period invested assets	$	69.3

Average Invested Assets Used in Reported Yield Calculation	$	70.0
Subtract:
Restricted commercial mortgage loans and other invested assets related to securitization entities¹¹		0.2

Average Invested Assets Used in Core Yield Calculation	$	69.8


(Income - amounts in millions)
Reported Net Investment Income	$	789
Subtract:
Bond calls and commercial mortgage loan prepayments		11
Other non-core items¹²		15
Restricted commercial mortgage loans and other invested assets related to securitization entities¹¹		3

Core Net Investment Income	$	760


Reported Yield		4.51	%

Core Yield		4.36	%

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

¹²	Includes cost basis adjustments on structured securities and various other immaterial items.

Exhibit 99.2

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016


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 Business*
Net Operating Income and Sales—U.S. Mortgage Insurance Segment		16-22
Net Operating Income and Sales—Canada Mortgage Insurance Segment		24-27
Net Operating Income and Sales—Australia Mortgage Insurance Segment		29-32
Net Operating Income (Loss) and Sales—U.S. Life Insurance Segment		34-37
Net Operating Income (Loss)—Runoff Segment		39
Net Operating Loss and Other Metrics—Corporate and Other Activities		41

*Additional Financial Data*
Investments Summary		43
Fixed Maturity Securities Summary		44
General Account GAAP Net Investment Income Yields		45
Net Investment Gains (Losses), Net—Detail		46

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		48
Reconciliation of Core Yield		49

*Corporate Information*
Industry Ratings		51

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

FIRST QUARTER 2016

Dear Investor,

Thank you for your continued interest in Genworth Financial.

Regards,

David Rosenbaum

Investor Relations

[email protected]

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

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 first quarter of 2016, the company recorded an estimated gain of $20 million, net of taxes, related to the planned sale of the mortgage insurance business in Europe. The company also recognized an estimated loss of $134 million, net of taxes, in the fourth quarter of 2015 for the planned sale of this business, as well as a tax charge of $7 million in the third quarter of 2015 from potential business portfolio changes related to this business resulting in a total estimated loss on sale of $141 million in 2015.

In January 2016, the company paid a make-whole expense of $13 million, net of taxes, related to the early redemption of Genworth Holdings, Inc.’s (Genworth Holdings) 2016 notes. The company also repurchased $28 million principal amount of Genworth Holdings’ notes with various maturity dates for a gain of $2 million, net of taxes, in the first quarter of 2016. In the third quarter of 2015, the company paid an early redemption payment of approximately $1 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth Financial Mortgage Insurance Pty Limited’s notes that were scheduled to mature in 2021. In the third quarter of 2015, the company also repurchased approximately $50 million principal amount of Genworth Holdings’ notes with various maturity dates for a loss of $1 million, net of taxes. These transactions were excluded from net operating income (loss) for the periods presented as they related to a gain (loss) on the early extinguishment of debt.

In the first quarter of 2016, the company completed a life block transaction resulting in an after-tax loss of $6 million in connection with the early extinguishment of non-recourse funding obligations. In the third quarter of 2015, the company recorded a DAC impairment of $296 million, net of taxes, on certain term life insurance policies in connection with entering into an agreement to complete a life block transaction.

In the first quarter of 2016, the company recorded an after-tax expense of $9 million 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 fourth and second quarters of 2015, the company also recorded an after-tax expense of $3 million and $2 million, respectively, related to restructuring costs.

There were no infrequent or unusual items excluded from net operating income (loss) during the periods presented other than fees incurred during the first quarter of 2016 related to Genworth Holdings’ bond consent solicitation of $12 million, net of taxes, for broker, advisor and investment banking fees.

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 48 and 49 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 46).

⁽¹⁾	U.S. Generally Accepted Accounting Principles

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

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.

The company allocates the consolidated provision for income taxes to its operating segments. The allocation 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. The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.

This financial supplement contains selected operating performance measures including “sales” and “insurance in-force” or “risk in-force” which are commonly used in the insurance industry as measures of operating performance.

Management regularly monitors and reports sales metrics as a measure of volume of new 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 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 mortgage insurance businesses, 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. 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. 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. In Australia, the company has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. 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

FIRST QUARTER 2016

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	March 31, 2016		December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	9,870	$	9,814	$	10,101	$	10,381	$	10,632
Total accumulated other comprehensive income		4,185		3,010		3,478		3,309		4,692

Total Genworth Financial, Inc.’s stockholders’ equity	$	14,055	$	12,824	$	13,579	$	13,690	$	15,324

Book value per common share	$	28.19	$	25.76	$	27.29	$	27.52	$	30.81
Book value per common share, excluding accumulated other comprehensive income	$	19.80	$	19.71	$	20.30	$	20.87	$	21.38
Common shares outstanding as of the balance sheet date		498.5		497.8		497.5		497.4		497.4

	Twelve months ended
Twelve Month Rolling Average ROE	March 31, 2016		December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015
GAAP Basis ROE		-7.0%		-6.0%		-10.3%		-15.0%		-11.3%
Operating ROE⁽¹⁾		2.0%		2.5%		-0.7%		-4.2%		-3.8%

	Three months ended
Quarterly Average ROE	March 31, 2016		December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015
GAAP Basis ROE		2.2%		-11.7%		-11.1%		-7.3%		5.8%
Operating ROE⁽¹⁾		4.2%		-3.3%		2.5%		4.5%		5.8%


Basic and Diluted Shares	Three months ended March 31, 2016
Weighted-average common shares used in basic earnings per common share calculations		498.0
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		1.4

Weighted-average common shares used in diluted earnings per common share calculations		499.4

⁽¹⁾	See page 48 herein for a reconciliation of GAAP Basis ROE to Operating ROE.

Consolidated Quarterly Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	794		$	1,157		$	1,145		$	1,134		$	1,143		$	4,579
Net investment income		789			781			783			793			781			3,138
Net investment gains (losses)		(19	)		(16	)		(51	)		8			(16	)		(75	)
Policy fees and other income		221			234			223			222			227			906

Total revenues		1,785			2,156			2,100			2,157			2,135			8,548

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		860			1,435			1,290			1,232			1,192			5,149
Interest credited		177			180			179			181			180			720
Acquisition and operating expenses, net of deferrals		394			433			314			295			267			1,309
Amortization of deferred acquisition costs and intangibles		99			207			563			101			95			966
Interest expense		105			104			105			103			107			419

Total benefits and expenses		1,635			2,359			2,451			1,912			1,841			8,563

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		150			(203	)		(351	)		245			294			(15	)
Provision (benefit) for income taxes		23			(36	)		(134	)		70			91			(9	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		127			(167	)		(217	)		175			203			(6	)
Income (loss) from discontinued operations, net of taxes⁽¹⁾		(19	)		(73	)		(21	)		(314	)		1			(407	)

NET INCOME (LOSS)		108			(240	)		(238	)		(139	)		204			(413	)
Less: net income attributable to noncontrolling interests		55			52			46			54			50			202

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	53		$	(292	)	$	(284	)	$	(193	)	$	154		$	(615	)


Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.14		$	(0.44	)	$	(0.53	)	$	0.24		$	0.31		$	(0.42	)
Diluted	$	0.14		$	(0.44	)	$	(0.53	)	$	0.24		$	0.31		$	(0.42	)
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.11		$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)
Diluted	$	0.11		$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)
Weighted-average common shares outstanding
Basic		498.0			497.6			497.4			497.4			497.0			497.4
Diluted⁽²⁾		499.4			497.6			497.4			499.3			498.9			497.4

⁽¹⁾

Income (loss) from discontinued operations related to the lifestyle protection business that was sold on December 1, 2015. During the first quarter of 2016, the company recorded an additional after-tax loss of approximately $19 million as it continues to finalize closing balance sheet purchase price adjustments.

⁽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, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.4 million and 1.3 million, respectively, for the three months ended December 31, 2015 and September 30, 2015 and 1.6 million for the twelve months ended December 31, 2015 would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations in these periods, dilutive potential weighted-average common shares outstanding would have been 499.0 million and 498.7 million, respectively, for the three months ended December 31, 2015 and September 30, 2015 and 499.0 million for the twelve months ended December 31, 2015.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Net Operating Income (Loss) by Segment by Quarter

(amounts in millions, except per share amounts)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
U.S. Mortgage Insurance segment	$	61		$	41		$	37		$	49		$	52		$	179
Canada Mortgage Insurance segment		33			37			38			37			40			152
Australia Mortgage Insurance segment		19			22			21			29			30			102
U.S. Life Insurance segment:
Long-Term Care Insurance		34			19			(10	)		10			10			29
Life Insurance		31			(173	)		31			22			40			(80	)
Fixed Annuities		26			19			19			25			31			94

Total U.S. Life Insurance segment		91			(135	)		40			57			81			43

Runoff segment		4			11			(4	)		9			11			27
Corporate and Other		(105	)		(58	)		(68	)		(62	)		(60	)		(248	)

NET OPERATING INCOME (LOSS)		103			(82	)		64			119			154			255
ADJUSTMENTS TO NET OPERATING INCOME (LOSS):
Net investment gains (losses), net		(13	)		—			(22	)		4			(1	)		(19	)
Gains (losses) on sale of business, net		20			(134	)		(7	)		—			—			(141	)
Gains (losses) on early extinguishment of debt, net		(11	)		—			(2	)		—			—			(2	)
Gains (losses) from life block transactions, net		(6	)		—			(296	)		—			—			(296	)
Expenses related to restructuring, net		(9	)		(3	)		—			(2	)		—			(5	)
Fees associated with bond consent solicitation, net		(12	)		—			—			—			—			—

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL INC.’S COMMON STOCKHOLDERS		72			(219	)		(263	)		121			153			(208	)
Net income attributable to noncontrolling interests		55			52			46			54			50			202

INCOME (LOSS) FROM CONTINUING OPERATIONS		127			(167	)		(217	)		175			203			(6	)
Income (loss) from discontinued operations, net of taxes		(19	)		(73	)		(21	)		(314	)		1			(407	)

NET INCOME (LOSS)		108			(240	)		(238	)		(139	)		204			(413	)
Less: net income attributable to noncontrolling interests		55			52			46			54			50			202

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	53		$	(292	)	$	(284	)	$	(193	)	$	154		$	(615	)


Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.11		$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)
Diluted	$	0.11		$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)
Net operating income (loss) per common share
Basic	$	0.21		$	(0.17	)	$	0.13		$	0.24		$	0.31		$	0.51
Diluted	$	0.21		$	(0.17	)	$	0.13		$	0.24		$	0.31		$	0.51
Weighted-average common shares outstanding
Basic		498.0			497.6			497.4			497.4			497.0			497.4
Diluted⁽¹⁾		499.4			497.6			497.4			499.3			498.9			497.4

⁽¹⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2016		December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	60,290	$	58,197	$	60,646	$	60,368	$	61,732
Equity securities available-for-sale, at fair value		431		310		273		299		299
Commercial mortgage loans		6,179		6,170		6,133		6,175		6,149
Restricted commercial mortgage loans related to securitization entities		155		161		175		181		188
Policy loans		1,565		1,568		1,567		1,584		1,506
Other invested assets		2,923		2,309		2,764		2,176		2,667
Restricted other invested assets related to securitization entities		422		413		412		410		411

Total investments		71,965		69,128		71,970		71,193		72,952
Cash and cash equivalents		4,043		5,965		3,635		4,069		4,937
Accrued investment income		720		653		682		612		713
Deferred acquisition costs		4,235		4,398		4,441		4,899		4,748
Intangible assets and goodwill		291		357		297		300		221
Reinsurance recoverable		17,587		17,245		17,255		17,276		17,285
Other assets		577		520		523		580		473
Deferred tax asset		—		155		—		—		—
Separate account assets		7,624		7,883		7,893		8,702		9,064
Assets held for sale⁽¹⁾		131		127		1,484		1,493		1,897

Total assets	$	107,173	$	106,431	$	108,180	$	109,124	$	112,290

⁽¹⁾	The assets held for sale related to the lifestyle protection insurance business (prior to its sale on December 1, 2015) and the European mortgage insurance business (prior to its sale) have been segregated in the consolidated balance sheets.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	36,776		$	36,475		$	36,472		$	36,298		$	36,488
Policyholder account balances		26,354			26,209			26,000			25,987			26,136
Liability for policy and contract claims		8,177			8,095			8,009			7,936			7,877
Unearned premiums		3,378			3,308			3,281			3,373			3,266
Other liabilities		3,596			3,004			3,225			3,125			3,613
Borrowings related to securitization entities		173			179			188			199			205
Non-recourse funding obligations		310			1,920			1,937			1,953			1,968
Long-term borrowings		4,232			4,570			4,573			4,581			4,575
Deferred tax liability		449			24			200			258			1,056
Separate account liabilities		7,624			7,883			7,893			8,702			9,064
Liabilities held for sale⁽¹⁾		131			127			986			985			961

Total liabilities		91,200			91,794			92,764			93,397			95,209

Equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,952			11,949			11,944			11,940			11,998

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		2,043			1,236			1,709			1,606			2,724
Net unrealized gains (losses) on other-than-temporarily impaired securities		14			18			22			22			24

Net unrealized investment gains (losses)		2,057			1,254			1,731			1,628			2,748

Derivatives qualifying as hedges		2,302			2,045			2,130			1,913			2,247
Foreign currency translation and other adjustments		(174	)		(289	)		(383	)		(232	)		(303	)

Total accumulated other comprehensive income		4,185			3,010			3,478			3,309			4,692
Retained earnings		617			564			856			1,140			1,333
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		14,055			12,824			13,579			13,690			15,324
Noncontrolling interests		1,918			1,813			1,837			2,037			1,757

Total equity		15,973			14,637			15,416			15,727			17,081

Total liabilities and equity	$	107,173		$	106,431		$	108,180		$	109,124		$	112,290

⁽¹⁾	The liabilities held for sale related to the lifestyle protection insurance business (prior to its sale on December 1, 2015) and the European mortgage insurance business (prior to its sale) have been segregated in the consolidated balance sheets.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Consolidated Balance Sheet by Segment

(amounts in millions)


	March 31, 2016
	U.S. Mortgage Insurance			Canada Mortgage Insurance			Australia Mortgage Insurance		U.S. Life Insurance		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	2,283		$	4,552		$	2,969	$	61,287	$	2,987		$	2,650		$	76,728
Deferred acquisition costs and intangible assets		35			130			55		4,023		276			7			4,526
Reinsurance recoverable		6			—			—		16,754		827			—			17,587
Other assets		43			45			29		346		15			99			577
Separate account assets		—			—			—		—		7,624			—			7,624
Assets held for sale		—			—			—		—		—			131			131

Total assets	$	2,367		$	4,727		$	3,053	$	82,410	$	11,729		$	2,887		$	107,173

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—		$	—		$	—	$	36,773	$	3		$	—		$	36,776
Policyholder account balances		—			—			—		22,915		3,439			—			26,354
Liability for policy and contract claims		768			102			181		7,097		21			8			8,177
Unearned premiums		274			1,527			976		595		6			—			3,378
Non-recourse funding obligations		—			—			—		310		—			—			310
Deferred tax and other liabilities		(489	)		84			147		3,440		(49	)		912			4,045
Borrowings and capital securities		—			333			188		—		10			3,874			4,405
Separate account liabilities		—			—			—		—		7,624			—			7,624
Liabilities held for sale		—			—			—		—		—			131			131

Total liabilities		553			2,046			1,492		71,130		11,054			4,925			91,200

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		1,794			1,668			641		7,022		682			(1,937	)		9,870
Allocated accumulated other comprehensive income (loss)		20			(117	)		132		4,258		(7	)		(101	)		4,185

Total Genworth Financial, Inc.’s stockholders’ equity		1,814			1,551			773		11,280		675			(2,038	)		14,055
Noncontrolling interests		—			1,130			788		—		—			—			1,918

Total equity		1,814			2,681			1,561		11,280		675			(2,038	)		15,973

Total liabilities and equity	$	2,367		$	4,727		$	3,053	$	82,410	$	11,729		$	2,887		$	107,173

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Consolidated Balance Sheet by Segment

(amounts in millions)


	December 31, 2015
	U.S. Mortgage Insurance		Canada Mortgage Insurance			Australia Mortgage Insurance		U.S. Life Insurance			Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	2,227	$	4,295		$	2,886	$	60,788		$	2,862		$	2,688		$	75,746
Deferred acquisition costs and intangible assets		32		123			56		4,251			285			8			4,755
Reinsurance recoverable		6		—			—		16,415			824			—			17,245
Deferred tax and other assets		634		102			45		(1,924	)		261			1,557			675
Separate account assets		—		—			—		—			7,883			—			7,883
Assets held for sale		—		—			—		—			—			127			127

Total assets	$	2,899	$	4,520		$	2,987	$	79,530		$	12,115		$	4,380		$	106,431

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	—		$	—	$	36,471		$	4		$	—		$	36,475
Policyholder account balances		—		—			—		23,009			3,200			—			26,209
Liability for policy and contract claims		849		87			165		6,969			18			7			8,095
Unearned premiums		258		1,460			963		621			6			—			3,308
Non-recourse funding obligations		—		—			—		1,950			—			(30	)		1,920
Deferred tax and other liabilities		89		170			152		659			290			1,668			3,028
Borrowings and capital securities		—		313			178		—			10			4,248			4,749
Separate account liabilities		—		—			—		—			7,883			—			7,883
Liabilities held for sale		—		—			—		—			—			127			127

Total liabilities		1,196		2,030			1,458		69,679			11,411			6,020			91,794

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		1,701		1,637			662		6,646			725			(1,557	)		9,814
Allocated accumulated other comprehensive income (loss)		2		(194	)		101		3,205			(21	)		(83	)		3,010

Total Genworth Financial, Inc.’s stockholders’ equity		1,703		1,443			763		9,851			704			(1,640	)		12,824
Noncontrolling interests		—		1,047			766		—			—			—			1,813

Total equity		1,703		2,490			1,529		9,851			704			(1,640	)		14,637

Total liabilities and equity	$	2,899	$	4,520		$	2,987	$	79,530		$	12,115		$	4,380		$	106,431

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Deferred Acquisition Costs Rollforward

(amounts in millions)


	U.S. Mortgage Insurance			Canada Mortgage Insurance			Australia Mortgage Insurance			U.S. Life Insurance⁽¹⁾			Runoff⁽²⁾			Corporate and Other		Total
Unamortized balance as of December 31, 2015	$	22		$	108		$	35		$	4,132		$	272		$	—	$	4,569
Costs deferred		3			8			2			37			—			—		50
Amortization, net of interest accretion		(2	)		(9	)		(3	)		(61	)		(5	)		—		(80	)
Impact of foreign currency translation		—			7			2			—			—			—		9

Unamortized balance as of March 31, 2016		23			114			36			4,108			267			—		4,548
Effect of accumulated net unrealized investment (gains) losses		—			—			—			(308	)		(5	)		—		(313	)

Balance as of March 31, 2016	$	23		$	114		$	36		$	3,800		$	262		$	—	$	4,235

⁽¹⁾	Amortization, net of interest accretion, included $4 million of amortization related to net investment gains for the policyholder account balances.

⁽²⁾	Amortization, net of interest accretion, included $4 million of amortization related to net investment gains for the policyholder account balances.

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

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

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	160		$	153		$	146		$	153		$	150		$	602
Net investment income		15			14			12			13			19			58
Net investment gains (losses)		(1	)		—			1			—			—			1
Policy fees and other income		1			1			2			—			1			4

Total revenues		175			168			161			166			170			665

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		38			59			63			50			50			222
Acquisition and operating expenses, net of deferrals		39			42			38			38			37			155
Amortization of deferred acquisition costs and intangibles		3			3			3			2			2			10

Total benefits and expenses		80			104			104			90			89			387

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		95			64			57			76			81			278
Provision for income taxes		34			23			20			27			29			99

INCOME FROM CONTINUING OPERATIONS		61			41			37			49			52			179
ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			—			—			—			—			—

NET OPERATING INCOME	$	61		$	41		$	37		$	49		$	52		$	179


Effective tax rate (operating income)⁽¹⁾		35.8	%		35.5	%		35.4	%		35.6	%		35.7	%		35.6	%

SALES:
New Insurance Written (NIW)
Flow	$	7,400		$	7,800		$	9,300		$	8,200		$	6,300		$	31,600
Bulk		—			—			—			—			—			—

Total U.S. Mortgage Insurance NIW	$	7,400		$	7,800		$	9,300		$	8,200		$	6,300		$	31,600

⁽¹⁾	The operating income (loss) effective tax rate for all pages in this financial supplement was calculated using whole dollars. As a result, the percentages shown may differ from an operating income (loss) effective tax rate calculated using the rounded numbers in this financial supplement.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

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

(amounts in millions)


	2016					2015
	1Q					4Q					3Q					2Q					1Q
	Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)
Product
Monthly⁽¹⁾	$	5,400		59		$	5,900		60		$	7,000		60		$	6,500		60		$	4,400		60
Single		2,000		164			1,900		168			2,300		171			1,700		172			1,900		160

Total Flow	$	7,400				$	7,800				$	9,300				$	8,200				$	6,300


	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	$	4,400		60	%	$	4,600		59	%	$	5,500		59	%	$	5,000		61	%	$	3,700		59	%
680—735		2,400		32			2,500		32			3,000		32			2,500		30			2,100		33
660—679⁽²⁾		300		4			400		5			500		6			400		5			300		5
620—659		300		4			300		4			300		3			300		4			200		3
<620		—		—			—		—			—		—			—		—			—		—

Total Flow	$	7,400		100	%	$	7,800		100	%	$	9,300		100	%	$	8,200		100	%	$	6,300		100	%

Loan-To-Value Ratio
95.01% and above	$	400		5	%	$	400		5	%	$	500		5	%	$	400		5	%	$	300		5	%
90.01% to 95.00%		3,700		50			4,000		51			4,900		53			4,200		51			3,100		49
85.01% to 90.00%		2,400		33			2,500		32			3,000		32			2,600		32			2,000		32
85.00% and below		900		12			900		12			900		10			1,000		12			900		14

Total Flow	$	7,400		100	%	$	7,800		100	%	$	9,300		100	%	$	8,200		100	%	$	6,300		100	%

Origination
Purchase	$	6,000		81	%	$	6,500		83	%	$	8,100		87	%	$	6,500		79	%	$	4,300		68	%
Refinance		1,400		19			1,300		17			1,200		13			1,700		21			2,000		32

Total Flow	$	7,400		100	%	$	7,800		100	%	$	9,300		100	%	$	8,200		100	%	$	6,300		100	%

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	176		$	171		$	171		$	170		$	170		$	682

New Risk Written
Flow	$	1,845		$	1,964		$	2,364		$	2,040		$	1,557		$	7,925
Bulk		—			—			—			—			—			—

Total Primary		1,845			1,964			2,364			2,040			1,557			7,925
Pool		—			—			—			—			—			—

Total New Risk Written	$	1,845		$	1,964		$	2,364		$	2,040		$	1,557		$	7,925


Primary Insurance In-Force	$	124,100		$	122,400		$	120,400		$	117,100		$	115,200

Risk In-Force
Flow	$	31,136		$	30,616		$	30,001		$	29,026		$	28,415
Bulk⁽¹⁾		318			326			349			360			387

Total Primary		31,454			30,942			30,350			29,386			28,802
Pool		116			120			129			137			142

Total Risk In-Force	$	31,570		$	31,062		$	30,479		$	29,523		$	28,944


Primary Risk In-Force That Is GSE Conforming		96	%		96	%		97	%		97	%		97	%

Expense Ratio (Net Earned Premiums)⁽²⁾		26	%		29	%		28	%		26	%		26	%		27	%

Expense Ratio (Net Premiums Written)⁽³⁾		24	%		26	%		24	%		23	%		23	%		24	%

Flow Persistency		82	%		81	%		80	%		79	%		81	%

Risk To Capital Ratio⁽⁴⁾		15.3:1			16.3:1			14.3:1			13.7:1			14.1:1

Average Primary Loan Size (in thousands)	$	189		$	188		$	186		$	184		$	182

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

⁽¹⁾	As of March 31, 2016, 90% of the 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 premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

⁽⁴⁾

Certain states limit a private mortgage insurer’s risk in-force to 25 times the total of the insurer’s policyholders’ surplus plus the statutory contingency reserve, commonly known as the “risk to capital” requirement. The current period risk to capital ratio is an estimate due to the timing of the filing of statutory statements and is prepared consistent with the presentation of the statutory financial statements in the combined annual statement of the U.S. mortgage insurance business.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Loss Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow
Direct⁽¹⁾	$	112		$	158		$	98		$	131		$	130		$	517
Assumed⁽²⁾		2			1			3			4			5			13
Ceded		(3	)		(1	)		—			(1	)		(16	)		(18	)
Loss adjustment expenses		3			3			3			3			4			13

Total Flow		114			161			104			137			123			525
Bulk		2			1			1			2			2			6

Total Primary		116			162			105			139			125			531
Pool		—			1			—			1			1			3

Total Paid Claims	$	116		$	163		$	105		$	140		$	126		$	534


Average Paid Claim (in thousands)⁽³⁾	$	51.9		$	63.6		$	54.0		$	50.8		$	46.5

Average Reserve Per Delinquency (in thousands)
Flow	$	28.3		$	27.2		$	29.4		$	30.6		$	31.0
Bulk loans with established reserve		21.2			19.9			20.0			21.5			21.2

Reserves:
Flow direct case	$	698		$	775		$	870		$	909		$	992
Bulk direct case		15			17			17			18			20
Assumed⁽²⁾		7			8			9			12			15
All other⁽⁴⁾		48			49			57			57			60

Total Reserves	$	768		$	849		$	953		$	996		$	1,087


Beginning Reserves	$	849		$	953		$	996		$	1,087		$	1,180		$	1,180
Paid claims⁽¹⁾		(119	)		(164	)		(105	)		(141	)		(142	)		(552	)
Increase in reserves		38			60			62			50			49			221

Ending Reserves	$	768		$	849		$	953		$	996		$	1,087		$	849


Beginning Reinsurance Recoverable⁽⁵⁾	$	5		$	6		$	6		$	7		$	24		$	24
Ceded paid claims		(3	)		(1	)		—			(1	)		(16	)		(18	)
Decrease in recoverable		—			—			—			—			(1	)		(1	)

Ending Reinsurance Recoverable	$	2		$	5		$	6		$	6		$	7		$	5

Loss Ratio⁽⁶⁾		24	%		39	%		43	%		33	%		33	%		37	%

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⁾	Direct paid claims and paid claims in the fourth quarter of 2015 include payment of a previously disclosed negotiated servicer settlement reached in 2014 and payment in relation to an agreement on non-performing loans.

⁽²⁾	Assumed is comprised of reinsurance arrangements with state governmental housing finance agencies.

⁽³⁾	Average paid claim in the fourth quarter of 2015 reflects the non-recurring payment to extinguish the risk on prior paid claims pursuant to a previously disclosed servicer settlement reached in 2014.

⁽⁴⁾	Other includes loss adjustment expenses, pool and incurred but not reported reserves.

⁽⁵⁾	Reinsurance recoverable excludes ceded unearned premium recoveries and amounts for which cash proceeds have not yet been received.

⁽⁶⁾	The ratio of incurred losses and loss adjustment expenses to net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		26,491			30,416			31,678			31,876			34,220
Bulk loans with an established reserve		776			889			917			908			984
Bulk loans with no reserve⁽¹⁾		335			358			394			415			461

Total Number of Primary Delinquencies		27,602			31,663			32,989			33,199			35,665


Beginning Number of Primary Delinquencies		31,663			32,989			33,199			35,665			39,786			39,786
New delinquencies		8,761			10,043			10,192			9,061			9,554			38,850
Delinquency cures		(10,602	)		(8,835	)		(8,484	)		(8,800	)		(10,988	)		(37,107	)
Paid claims		(2,220	)		(2,534	)		(1,918	)		(2,727	)		(2,687	)		(9,866	)

Ending Number of Primary Delinquencies		27,602			31,663			32,989			33,199			35,665			31,663


Composition of Cures
Reported delinquent and cured-intraquarter		2,503			1,740			1,805			1,658			2,271
Number of missed payments delinquent prior to cure:
3 payments or less		5,775			5,005			4,630			4,260			6,112
4 - 11 payments		1,443			1,330			1,487			2,250			1,912
12 payments or more		881			760			562			632			693

Total		10,602			8,835			8,484			8,800			10,988


Primary Delinquencies by Missed Payment Status
3 payments or less		8,395			10,487			10,226			9,432			9,271
4 - 11 payments		7,254			7,577			7,376			7,824			9,086
12 payments or more		11,953			13,599			15,387			15,943			17,308

Primary Delinquencies		27,602			31,663			32,989			33,199			35,665



	March 31, 2016
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies			Direct Case Reserves⁽²⁾			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default		8,082		$	45		$	337			13	%
4 - 11 payments in default		7,065			176			294			60	%
12 payments or more in default		11,344			477			559			85	%

Total		26,491		$	698		$	1,190			59	%


	December 31, 2015
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies			Direct Case Reserves⁽²⁾			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default		10,103		$	52		$	405			13	%
4 - 11 payments in default		7,366			180			307			59	%
12 payments or more in default		12,947			543			638			85	%

Total		30,416		$	775		$	1,350			57	%

⁽¹⁾	Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes currently have no risk for claim.

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2016			2015
	1Q			4Q			3Q			2Q			1Q
Primary Loans
Primary loans in-force		655,300			651,668			647,126			636,640			631,591
Primary delinquent loans		27,602			31,663			32,989			33,199			35,665
Primary delinquency rate		4.21	%		4.86	%		5.10	%		5.21	%		5.65	%

Flow loans in-force		632,010			627,349			620,430			608,615			601,472
Flow delinquent loans		26,491			30,416			31,678			31,876			34,220
Flow delinquency rate		4.19	%		4.85	%		5.11	%		5.24	%		5.69	%

Bulk loans in-force		23,290			24,319			26,696			28,025			30,119
Bulk delinquent loans		1,111			1,247			1,311			1,323			1,445
Bulk delinquency rate		4.77	%		5.13	%		4.91	%		4.72	%		4.80	%

A minus and sub-prime loans in-force		26,995			28,332			29,745			31,051			33,805
A minus and sub-prime delinquent loans		5,546			6,448			6,642			6,530			7,019
A minus and sub-prime delinquency rate		20.54	%		22.76	%		22.33	%		21.03	%		20.76	%

Pool Loans
Pool loans in-force		6,406			6,620			7,284			7,709			7,979
Pool delinquent loans		369			386			426			447			468
Pool delinquency rate		5.76	%		5.83	%		5.85	%		5.80	%		5.87	%

Primary Risk In-Force by Credit Quality
Over 735		53	%		53	%		52	%		52	%		52	%
680-735		31	%		31	%		31	%		31	%		31	%
660-679⁽¹⁾		7	%		7	%		7	%		7	%		7	%
620-659		7	%		7	%		7	%		7	%		7	%
< 620		2	%		2	%		3	%		3	%		3	%

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	March 31, 2016
Policy Year	Average Rate⁽¹⁾			% of Total Reserves⁽²⁾			Primary Insurance In-Force		% of Total			Primary Risk In-Force		% of Total			Deliquency Rate
2004 and prior		6.04	%		11.9	%	$	3,714		3.0	%	$	833		2.6	%		13.68	%
2005		5.65	%		11.7			3,310		2.7			898		2.9			13.03	%
2006		5.84	%		17.2			5,498		4.4			1,431		4.6			12.48	%
2007		5.74	%		37.1			14,236		11.5			3,588		11.4			11.25	%
2008		5.28	%		16.8			12,181		9.8			3,089		9.8			6.22	%
2009		4.95	%		0.6			1,679		1.4			393		1.2			1.95	%
2010		4.69	%		0.7			2,121		1.7			534		1.7			1.76	%
2011		4.53	%		0.6			3,020		2.4			781		2.5			1.41	%
2012		3.83	%		0.6			7,749		6.2			2,032		6.5			0.62	%
2013		4.01	%		1.0			13,719		11.1			3,548		11.3			0.57	%
2014		4.40	%		1.4			19,256		15.5			4,886		15.5			0.58	%
2015		4.10	%		0.4			30,277		24.4			7,603		24.2			0.17	%
2016		4.12	%		—			7,336		5.9			1,838		5.8			0.02	%

Total		4.73	%		100.0	%	$	124,096		100.0	%	$	31,454		100.0	%		4.21	%


	March 31, 2016						December 31, 2015					March 31, 2015
	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)	$	31,454			4.21	%	$	30,942		4.86	%	$	28,802		5.65	%
Top 10 lenders		11,282			5.60	%		11,536		6.47	%		12,123		6.98	%
Top 20 lenders		14,165			5.01	%		14,201		5.68	%		14,177		6.54	%

Loan-to-value ratio
95.01% and above	$	6,207			7.14	%	$	6,309		8.17	%	$	6,654		8.16	%
90.01% to 95.00%		14,941			2.90	%		14,425		3.36	%		12,398		4.34	%
80.01% to 90.00%		10,004			3.99	%		9,900		4.57	%		9,402		5.51	%
80.00% and below		302			3.17	%		308		3.39	%		348		3.37	%

Total	$	31,454			4.21	%	$	30,942		4.86	%	$	28,802		5.65	%

Loan grade
Prime	$	30,436			3.51	%	$	29,874		4.05	%	$	27,593		4.81	%
A minus and sub-prime		1,018			20.54	%		1,068		22.76	%		1,209		21.18	%

Total	$	31,454			4.21	%	$	30,942		4.86	%	$	28,802		5.65	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $768 million as of March 31, 2016.

Canada Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Net Operating Income and Sales—Canada Mortgage Insurance Segment

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	111		$	115		$	116		$	116		$	119		$	466
Net investment income		29			31			32			33			34			130
Net investment gains (losses)		20			(11	)		(23	)		20			(18	)		(32	)
Policy fees and other income		—			—			(1	)		—			1			—

Total revenues		160			135			124			169			136			564

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		26			26			24			21			25			96
Acquisition and operating expenses, net of deferrals		18			16			16			22			12			66
Amortization of deferred acquisition costs and intangibles		9			9			9			9			9			36
Interest expense		4			4			5			4			5			18

Total benefits and expenses		57			55			54			56			51			216

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		103			80			70			113			85			348
Provision for income taxes		29			20			17			31			22			90

INCOME FROM CONTINUING OPERATIONS		74			60			53			82			63			258
Less: net income attributable to noncontrolling interests		34			27			24			38			29			118

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		40			33			29			44			34			140

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(7	)		4			9			(7	)		6			12

NET OPERATING INCOME⁽¹⁾	$	33		$	37		$	38		$	37		$	40		$	152


Effective tax rate (operating income)		18.6	%		27.1	%		27.2	%		27.3	%		27.9	%		27.4	%

SALES:
New Insurance Written (NIW)
Flow	$	2,500		$	4,700		$	6,600		$	5,400		$	3,300		$	20,000
Bulk		3,200			7,300			4,800			3,300			5,000			20,400

Total Canada NIW⁽²⁾	$	5,700		$	12,000		$	11,400		$	8,700		$	8,300		$	40,400

⁽¹⁾	Net operating income for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $39 million for the three months ended March 31, 2016.

⁽²⁾	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $6,600 million for the three months ended March 31, 2016.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Selected Key Performance Measures—Canada Mortgage Insurance Segment

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	84		$	162		$	204		$	166		$	109		$	641
Loss Ratio⁽¹⁾		24	%		23	%		21	%		17	%		22	%		21%
Expense Ratio (Net Earned Premiums)⁽²⁾		24	%		22	%		22	%		27	%		18	%		22%
Expense Ratio (Net Premiums Written)⁽³⁾		32	%		15	%		12	%		19	%		20	%		16%

Primary Insurance In-Force⁽⁴⁾	$	317,400		$	292,600		$	292,000		$	300,900		$	288,800
Primary Risk In-Force⁽⁵⁾
Flow	$	79,900		$	74,300		$	75,500		$	78,500		$	75,700
Bulk		31,200			28,100			26,700			26,800			25,400

Total	$	111,100		$	102,400		$	102,200		$	105,300		$	101,100



Risk In-Force by Loan-To-Value Ratio⁽⁶⁾	March 31, 2016												December 31, 2015
	Primary			Flow			Bulk						Primary			Flow		Bulk
95.01% and above	$	38,398		$	38,398		$	—					$	35,570		$	35,570	$	—
90.01% to 95.00%		24,011			24,011			—						22,338			22,338		—
80.01% to 90.00%		14,602			14,599			3						13,630			13,627		3
80.00% and below		34,078			2,928			31,150						30,873			2,729		28,144

Total	$	111,089		$	79,936		$	31,153					$	102,411		$	74,264	$	28,147

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.

Amounts may not total due to rounding.

⁽¹⁾	The ratio of incurred losses and loss adjustment expenses to net earned premiums.

⁽²⁾	The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

⁽³⁾	The ratio of an insurer’s general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

⁽⁴⁾

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 on a quarter lag. As a result, the company estimates that the outstanding balance of insured mortgages was approximately $139 billion, $138 billion, $142 billion and $137 billion as of December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015. This is based on the extrapolation of the amounts reported by lenders to the entire insured population.

⁽⁵⁾

The business currently provides 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Canada has computed an “effective risk in-force” amount which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents the highest expected average per-claim payment for any one underwriting year over the life of the business. This factor was 35% for all periods presented.

⁽⁶⁾	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Selected Key Performance Measures—Canada Mortgage Insurance Segment

(dollar amounts in millions)


Primary Insurance	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Insured loans in-force^(1),(2)		1,860,978			1,835,916			1,785,541			1,737,083			1,704,483
Insured delinquent loans		2,034			1,829			1,715			1,666			1,792
Insured delinquency rate^(2),(3)		0.11	%		0.10	%		0.10	%		0.10	%		0.11	%

Flow loans in-force⁽¹⁾		1,341,636			1,331,773			1,313,034			1,287,744			1,266,626
Flow delinquent loans		1,711			1,550			1,449			1,435			1,532
Flow delinquency rate⁽³⁾		0.13	%		0.12	%		0.11	%		0.11	%		0.12	%

Bulk loans in-force⁽¹⁾		519,342			504,143			472,507			449,339			437,857
Bulk delinquent loans		323			279			266			231			260
Bulk delinquency rate⁽³⁾		0.06	%		0.06	%		0.06	%		0.05	%		0.06	%

Loss Metrics	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Beginning Reserves	$	87		$	83		$	85		$	85		$	91
Paid claims⁽⁴⁾		(18	)		(18	)		(20	)		(21	)		(22	)
Increase in reserves		26			25			23			19			24
Impact of changes in foreign exchange rates		7			(3	)		(5	)		2			(8	)

Ending Reserves	$	102		$	87		$	83		$	85		$	85


	March 31, 2016						December 31, 2015						March 31, 2015
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		47	%		0.05	%		47	%		0.05	%		46	%		0.05	%
Alberta		17			0.16	%		17			0.12	%		17			0.09	%
British Columbia		14			0.08	%		14			0.08	%		14			0.13	%
Quebec		13			0.20	%		13			0.19	%		14			0.19	%
Saskatchewan		3			0.21	%		3			0.17	%		3			0.15	%
Nova Scotia		2			0.20	%		2			0.18	%		2			0.23	%
Manitoba		2			0.10	%		2			0.09	%		2			0.07	%
New Brunswick		1			0.21	%		1			0.20	%		1			0.22	%
All Other		1			0.14	%		1			0.13	%		1			0.12	%

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


By Policy Year
2007 and prior		35	%		0.05	%		36	%		0.04	%		39	%		0.05	%
2008		6			0.19	%		6			0.19	%		7			0.22	%
2009		4			0.18	%		4			0.16	%		5			0.19	%
2010		6			0.22	%		7			0.21	%		7			0.23	%
2011		6			0.29	%		6			0.26	%		7			0.26	%
2012		8			0.24	%		7			0.22	%		10			0.19	%
2013		9			0.19	%		9			0.16	%		10			0.11	%
2014		10			0.12	%		10			0.09	%		12			0.05	%
2015		14			0.02	%		15			0.01	%		3			—	%
2016		2			—	%		—			—	%		—			—	%

Total		100	%		0.11	%		100	%		0.10	%		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 on a quarter lag. As a result, the company estimates that the outstanding loans in-force were 870,000 as of December 31, 2015, 836,000 as of September 30, 2015, 828,000 as of June 30, 2015, and 809,100 as of March 31, 2015. This is based on the extrapolation of the amounts reported by lenders to the entire insured population. The corresponding insured delinquency rate was 0.21% as of December 31, 2015 and September 30, 2015, 0.20% as of June 30, 2015 and 0.22% as of March 31, 2015.

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Selected Key Performance Measures—Canada Mortgage Insurance Segment

(Canadian dollar amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	24		$	23		$	25		$	25		$	25		$	98
Bulk		1			1			1			1			2			5

Total Paid Claims	$	25		$	24		$	26		$	26		$	27		$	103


Average Paid Claim (in thousands)	$	67.8		$	63.7		$	66.2		$	58.7		$	67.9

Average Reserve Per Delinquency (in thousands)	$	65.0		$	65.7		$	64.2		$	63.6		$	60.4

Loss Metrics

Beginning Reserves	$	120		$	110		$	106		$	108		$	106
Paid claims⁽¹⁾		(25	)		(24	)		(26	)		(26	)		(27	)
Increase in reserves		37			34			30			24			29

Ending Reserves	$	132		$	120		$	110		$	106		$	108

Loan Amount⁽²⁾

Over $550K		7	%		7	%		7	%		6	%		6	%
$400K to $550K		13			13			12			12			12
$250K to $400K		34			33			33			33			33
$100K to $250K		42			43			44			44			44
$100K or Less		4			4			4			5			5

Total		100	%		100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	222		$	221		$	218		$	216		$	215

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.

Australia Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Net Operating Income and Sales—Australia Mortgage Insurance Segment

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	81		$	86		$	92		$	90		$	89		$	357
Net investment income		24			25			28			29			32			114
Net investment gains (losses)		—			2			3			—			1			6
Policy fees and other income		—			1			(1	)		1			(4	)		(3	)

Total revenues		105			114			122			120			118			474

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		21			15			27			25			14			81
Acquisition and operating expenses, net of deferrals		19			24			27			25			22			98
Amortization of deferred acquisition costs and intangibles		3			4			4			5			5			18
Interest expense		3			3			3			2			2			10

Total benefits and expenses		46			46			61			57			43			207

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		59			68			61			63			75			267
Provision for income taxes		19			20			18			18			24			80

INCOME FROM CONTINUING OPERATIONS		40			48			43			45			51			187
Less: net income attributable to noncontrolling interests		21			25			22			16			21			84


INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		19			23			21			29			30			103

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

NET OPERATING INCOME⁽¹⁾	$	19		$	22		$	21		$	29		$	30		$	102


Effective tax rate (operating income)		30.3	%		28.7	%		28.0	%		29.5	%		30.5	%		29.3	%

SALES:
New Insurance Written (NIW)
Flow	$	4,400		$	4,600		$	6,300		$	6,500		$	5,800		$	23,200
Bulk		—			—			—			1,700			—			1,700

Total Australia NIW⁽²⁾	$	4,400		$	4,600		$	6,300		$	8,200		$	5,800		$	24,900

⁽¹⁾	Net operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $22 million for the three months ended March 31, 2016.

⁽²⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $4,900 million for the three months ended March 31, 2016.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	47		$	55		$	79		$	107		$	87		$	328
Loss Ratio^(1),(2)		26	%		17	%		29	%		28	%		15	%		23%
Expense Ratio (Net Earned Premiums)⁽³⁾		27	%		31	%		34	%		33	%		30	%		32%
Expense Ratio (Net Premiums Written)⁽⁴⁾		47	%		49	%		40	%		28	%		31	%		35%

Primary Insurance In-Force	$	246,800		$	233,600		$	224,100		$	243,800		$	240,900
Primary Risk In-Force⁽⁵⁾
Flow	$	80,300		$	76,000		$	72,900		$	79,100		$	78,600
Bulk		5,700			5,500			5,500			6,200			5,700

Total	$	86,000		$	81,500		$	78,400		$	85,300		$	84,300



	March 31, 2016												December 31, 2015
Risk In-Force by Loan-To-Value Ratio⁽⁶⁾	Primary			Flow			Bulk						Primary			Flow		Bulk
95.01% and above	$	15,585		$	15,585		$	—					$	15,055		$	15,055	$	—
90.01% to 95.00%		22,243			22,237			6						20,933			20,927		6
80.01% to 90.00%		22,803			22,736			67						21,510			21,446		64
80.00% and below		25,392			19,744			5,648						23,970			18,545		5,426

Total	$	86,023		$	80,302		$	5,721					$	81,468		$	75,972	$	5,496

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.

Amounts may not total due to rounding.

⁽¹⁾	The ratio of incurred losses and loss adjustment expenses to net earned premiums.

⁽²⁾

During the third quarter of 2015, the company increased reserves $9 million mainly related to the estimate of the period of time it takes for a delinquent loan to be reported and increased net earned premiums $8 million from refinements to premium recognition factors. These adjustments unfavorably impacted the loss ratio by seven percentage points for the three months ended September 30, 2015. 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 percentage points for the three months ended March 31, 2015.

⁽³⁾

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. The debt early redemption payment of $2 million in the third quarter of 2015 unfavorably impacted this expense ratio by two percentage points for the three months ended September 30, 2015.

⁽⁴⁾

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. The debt early redemption payment of $2 million in the third quarter of 2015 unfavorably impacted this expense ratio by two percentage points for the three months ended September 30, 2015.

⁽⁵⁾

The business currently provides 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Australia has computed an “effective risk in-force” amount which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents the highest expected average per-claim payment for any one underwriting year over the life of the business. This factor was 35% for all periods presented. Australia also has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor.

⁽⁶⁾	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(dollar amounts in millions)


Primary Insurance	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Insured loans in-force		1,479,544			1,478,434			1,479,676			1,481,755			1,498,197
Insured delinquent loans		5,889			5,552			5,804			5,900			5,378
Insured delinquency rate		0.40	%		0.38	%		0.39	%		0.40	%		0.36	%

Flow loans in-force		1,366,914			1,364,628			1,364,537			1,364,653			1,382,156
Flow delinquent loans		5,633			5,317			5,545			5,623			5,112
Flow delinquency rate		0.41	%		0.39	%		0.41	%		0.41	%		0.37	%

Bulk loans in-force		112,630			113,806			115,139			117,102			116,041
Bulk delinquent loans		256			235			259			277			266
Bulk delinquency rate		0.23	%		0.21	%		0.22	%		0.24	%		0.23	%

Loss Metrics	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Beginning Reserves	$	165		$	156		$	160		$	149		$	152
Paid claims⁽¹⁾		(13	)		(14	)		(16	)		(15	)		(14	)
Increase in reserves		20			17			27			25			21
Impact of changes in foreign exchange rates		9			6			(15	)		1			(10	)

Ending Reserves	$	181		$	165		$	156		$	160		$	149


	March 31, 2016						December 31, 2015						March 31, 2015
State and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
New South Wales		29	%		0.29	%		29	%		0.27	%		29	%		0.29%
Queensland		23			0.55	%		23			0.53	%		23			0.50%
Victoria		23			0.35	%		23			0.33	%		23			0.32%
Western Australia		11			0.53	%		11			0.46	%		11			0.37%
South Australia		6			0.52	%		6			0.51	%		6			0.48%
Australian Capital Territory		3			0.18	%		3			0.17	%		3			0.13%
Tasmania		2			0.38	%		2			0.32	%		2			0.28%
New Zealand		2			0.13	%		2			0.17	%		2			0.27%
Northern Territory		1			0.21	%		1			0.17	%		1			0.20%

Total		100	%		0.40	%		100	%		0.38	%		100	%		0.36%


By Policy Year
2007 and prior		36	%		0.29	%		36	%		0.29	%		39	%		0.29%
2008		6			0.98	%		6			0.89	%		7			0.87%
2009		7			0.73	%		8			0.71	%		9			0.70%
2010		6			0.51	%		6			0.46	%		6			0.42%
2011		6			0.52	%		6			0.46	%		7			0.42%
2012		8			0.54	%		8			0.49	%		9			0.40%
2013		9			0.47	%		10			0.37	%		10			0.26%
2014		11			0.26	%		11			0.19	%		11			0.06%
2015		9			0.06	%		9			0.02	%		2			— %
2016		2			—	%		—			—	%		—			— %

Total		100	%		0.40	%		100	%		0.38	%		100	%		0.36%

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(Australian dollar amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	18		$	22		$	21		$	19		$	17		$	79
Bulk		—			—			—			—			1			1

Total Paid Claims	$	18		$	22		$	21		$	19		$	18		$	80


Average Paid Claim (in thousands)	$	65.8		$	71.0		$	65.9		$	66.9		$	62.5

Average Reserve Per Delinquency (in thousands)	$	40.1		$	40.7		$	38.3		$	35.2		$	36.4

Loss Metrics
Beginning Reserves	$	226		$	222		$	208		$	196		$	186
Paid claims⁽¹⁾		(18	)		(22	)		(21	)		(19	)		(18	)
Increase in reserves		28			26			35			31			28

Ending Reserves	$	236		$	226		$	222		$	208		$	196

Loan Amount⁽²⁾

Over $550K		15	%		15	%		15	%		14	%		13	%
$400K to $550K		20			19			19			19			19
$250K to $400K		36			36			36			36			37
$100K to $250K		24			25			25			25			26
$100K or Less		5			5			5			6			5

Total		100	%		100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	218		$	217		$	216		$	213		$	211

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.

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

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

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	436		$	797		$	784		$	769		$	778		$	3,128
Net investment income		684			673			680			677			671			2,701
Net investment gains (losses)		(16	)		17			(16	)		(7	)		(4	)		(10	)
Policy fees and other income		177			187			177			182			180			726

Total revenues		1,281			1,674			1,625			1,621			1,625			6,545

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		758			1,324			1,155			1,122			1,091			4,692
Interest credited		144			148			148			150			150			596
Acquisition and operating expenses, net of deferrals		165			178			176			167			163			684
Amortization of deferred acquisition costs and intangibles		78			194			530			75			73			872
Interest expense		28			23			22			22			25			92

Total benefits and expenses		1,173			1,867			2,031			1,536			1,502			6,936

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		108			(193	)		(406	)		85			123			(391	)
Provision (benefit) for income taxes		39			(68	)		(144	)		31			43			(138	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		69			(125	)		(262	)		54			80			(253	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		7			(12	)		6			2			1			(3	)
(Gains) losses from life block transactions, net		6			—			296			—			—			296
Expenses related to restructuring, net		9			2			—			1			—			3

NET OPERATING INCOME (LOSS)	$	91		$	(135	)	$	40		$	57		$	81		$	43


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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

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

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	618		$	633		$	618		$	597		$	589		$	2,437
Net investment income		329			325			327			320			313			1,285
Net investment gains (losses)		4			24			4			(3	)		3			28
Policy fees and other income		1			1			—			1			—			2

Total revenues		952			983			949			915			905			3,752

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		776			797			825			780			766			3,168
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		95			110			112			98			95			415
Amortization of deferred acquisition costs and intangibles		26			25			24			24			26			99
Interest expense		—			—			—			—			—			—

Total benefits and expenses		897			932			961			902			887			3,682

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		55			51			(12	)		13			18			70
Provision (benefit) for income taxes		20			19			(5	)		5			6			25

INCOME (LOSS) FROM CONTINUING OPERATIONS		35			32			(7	)		8			12			45

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(3	)		(15	)		(3	)		2			(2	)		(18	)
Expenses related to restructuring, net		2			2			—			—			—			2

NET OPERATING INCOME (LOSS)	$	34		$	19		$	(10	)	$	10		$	10		$	29


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

SALES:
Individual Long-Term Care Insurance	$	5		$	8		$	7		$	8		$	10		$	33
Group Long-Term Care Insurance		2			2			1			1			1			5

Total Sales	$	7		$	10		$	8		$	9		$	11		$	38


RATIOS:
Loss Ratio⁽¹⁾		67.6	%		72.9	%		76.4	%		72.6	%		72.4	%		73.6	%
Gross Benefits Ratio⁽²⁾		125.5	%		125.9	%		133.5	%		130.5	%		130.2	%		130.0	%

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

⁽²⁾	The gross benefits ratio was calculated by dividing benefits and other changes in policy reserves by net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

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

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums⁽¹⁾	$	(185	)	$	160		$	162		$	169		$	179		$	670
Net investment income		133			125			126			127			127			505
Net investment gains (losses)		2			15			(8	)		3			3			13
Policy fees and other income		173			183			175			178			178			714

Total revenues		123			483			455			477			487			1,902

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves⁽¹⁾		(87	)		446			248			266			250			1,210
Interest credited		64			68			66			68			66			268
Acquisition and operating expenses, net of deferrals		51			50			48			52			51			201
Amortization of deferred acquisition costs and intangibles		33			150			487			33			30			700
Interest expense		28			23			22			22			25			92

Total benefits and expenses		89			737			871			441			422			2,471

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		34			(254	)		(416	)		36			65			(569	)
Provision (benefit) for income taxes		12			(90	)		(147	)		13			23			(201	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		22			(164	)		(269	)		23			42			(368	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(1	)		(9	)		4			(2	)		(2	)		(9	)
(Gains) losses from life block transactions, net		6			—			296			—			—			296
Expenses related to restructuring, net		4			—			—			1			—			1

NET OPERATING INCOME (LOSS)	$	31		$	(173	)	$	31		$	22		$	40		$	(80	)


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

SALES:
Term Life	$	5		$	6		$	7		$	9		$	9		$	31
Universal Life		2			3			2			4			4			13
Linked-Benefits		2			1			3			2			4			10

Total Sales	$	9		$	10		$	12		$	15		$	17		$	54

⁽¹⁾

In January 2016, as part of a life block transaction, the company entered into a new reinsurance agreement to cede certain of its term life insurance policies. This new reinsurance agreement primarily reduced premiums by $326 million and reduced benefits and other changes in policy reserves by $331 million for the amounts initially ceded.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

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

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	3		$	4		$	4		$	3		$	10		$	21
Net investment income		222			223			227			230			231			911
Net investment gains (losses)		(22	)		(22	)		(12	)		(7	)		(10	)		(51	)
Policy fees and other income		3			3			2			3			2			10

Total revenues		206			208			221			229			233			891

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		69			81			82			76			75			314
Interest credited		80			80			82			82			84			328
Acquisition and operating expenses, net of deferrals		19			18			16			17			17			68
Amortization of deferred acquisition costs and intangibles		19			19			19			18			17			73
Interest expense		—			—			—			—			—			—

Total benefits and expenses		187			198			199			193			193			783

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		19			10			22			36			40			108
Provision for income taxes		7			3			8			13			14			38

INCOME FROM CONTINUING OPERATIONS		12			7			14			23			26			70

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		11			12			5			2			5			24
Expenses related to restructuring, net		3			—			—			—			—			—

NET OPERATING INCOME	$	26		$	19		$	19		$	25		$	31		$	94


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

SALES:
Single Premium Deferred Annuities	$	159		$	297		$	248		$	211		$	306		$	1,062
Single Premium Immediate Annuities		9			17			12			13			20			62

Total Sales	$	168		$	314		$	260		$	224		$	326		$	1,124

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Net Operating Income (Loss)—Runoff Segment

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	1		$	—		$	1
Net investment income		35			35			32			40			31			138
Net investment gains (losses)		(8	)		(30	)		(25	)		(8	)		(6	)		(69	)
Policy fees and other income		42			45			46			49			49			189

Total revenues		69			50			53			82			74			259

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		15			8			18			11			7			44
Interest credited		33			32			31			31			30			124
Acquisition and operating expenses, net of deferrals		16			19			17			21			19			76
Amortization of deferred acquisition costs and intangibles		6			(3	)		17			10			5			29
Interest expense		—			—			—			1			—			1

Total benefits and expenses		70			56			83			74			61			274

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(1	)		(6	)		(30	)		8			13			(15	)
Provision (benefit) for income taxes		(2	)		(3	)		(12	)		2			3			(10	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		1			(3	)		(18	)		6			10			(5	)

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		3			14			14			3			1			32

NET OPERATING INCOME (LOSS)	$	4		$	11		$	(4	)	$	9		$	11		$	27


Effective tax rate (operating income (loss))		3.1	%		26.6	%		49.2	%		25.7	%		26.7	%		19.9	%

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Net Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	6		$	6		$	7		$	5		$	7		$	25
Net investment income		2			3			(1	)		1			(6	)		(3	)
Net investment gains (losses)		(14	)		6			9			3			11			29
Policy fees and other income		1			—			—			(10	)		—			(10	)

Total revenues		(5	)		15			15			(1	)		12			41

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		2			3			3			3			5			14
Acquisition and operating expenses, net of deferrals⁽²⁾		137			154			40			22			14			230
Amortization of deferred acquisition costs and intangibles		—			—			—			—			1			1
Interest expense		70			74			75			74			75			298

Total benefits and expenses		209			231			118			99			95			543

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(214	)		(216	)		(103	)		(100	)		(83	)		(502	)
Benefit for income taxes		(96	)		(28	)		(33	)		(39	)		(30	)		(130	)

LOSS FROM CONTINUING OPERATIONS		(118	)		(188	)		(70	)		(61	)		(53	)		(372	)
Income (loss) from discontinued operations, net of taxes		(19	)		(73	)		(21	)		(314	)		1			(407	)

NET LOSS		(137	)		(261	)		(91	)		(375	)		(52	)		(779	)

ADJUSTMENTS TO NET LOSS:
Net investment (gains) losses, net		10			(5	)		(6	)		(2	)		(7	)		(20	)
(Gains) losses on sale of business, net		(20	)		134			7			—			—			141
(Gains) losses on early extinguishment of debt, net		11			—			1			—			—			1
Expenses related to restructuring, net		—			1			—			1			—			2
Fees associated with bond consent solicitation, net		12			—			—			—			—			—
(Income) loss from discontinued operations, net of taxes		19			73			21			314			(1	)		407

NET OPERATING LOSS⁽³⁾	$	(105	)	$	(58	)	$	(68	)	$	(62	)	$	(60	)	$	(248	)


Effective tax rate (operating loss)		22.5	%		27.4	%		40.0	%		40.2	%		34.0	%		36.0	%

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

⁽²⁾

In the first quarter of 2016, acquisition and operating expenses, net of deferrals, included the following: $83 million of legal fees and expenses, including $69 million related to the settlement of the long-term care insurance class action lawsuit; $20 million of make-whole expense on the early redemption of Genworth Holdings’ 2016 senior notes in January 2016; $18 million associated with Genworth Holdings’ bond consent solicitation for broker, advisor and investment banking fees; and an additional estimated loss of $7 million related to the planned sale of the mortgage insurance business in Europe. In the fourth quarter of 2015, acquisition and operating expenses, net of deferrals, included an estimated loss of $140 million related to the planned sale of the mortgage insurance business in Europe.

⁽³⁾	Operating results of certain smaller international mortgage insurance businesses are included above. Metrics for these businesses were as follows:


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
Net Operating Loss	$	(1	)	$	(4	)	$	(5	)	$	(5	)	$	(6	)	$	(20	)
Loss Ratio^(a)		27	%		62	%		48	%		43	%		81	%		59	%
Expense Ratio (Earned Premiums)^(b),(c)		107	%		145	%		143	%		143	%		125	%		139	%
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. ^(a) The ratio of incurred losses and loss adjustment expenses to net earned premiums. ^(b) 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. ^(c) Includes the impact of settlements and cancelled insurance contracts, primarily in Europe.

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Investments Summary

(amounts in millions)


		March 31, 2016					December 31, 2015					September 30, 2015					June 30, 2015					March 31, 2015
		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		$	33,362		44	%	$	31,969		43	%	$	33,541		44	%	$	33,407		45	%	$	34,555		44	%
Private fixed maturity securities			10,867		14			10,822		15			10,908		15			10,777		14			10,879		14
Residential mortgage-backed securities⁽¹⁾			5,041		7			4,998		7			5,008		7			4,954		7			5,011		6
Commercial mortgage-backed securities			2,633		4			2,475		3			2,492		3			2,475		3			2,548		3
Other asset-backed securities			3,287		4			3,253		4			3,904		5			3,837		5			3,766		5
State and political subdivisions			2,517		3			2,428		3			2,447		3			2,388		3			2,350		3
Non-investment grade fixed maturity securities			2,583		3			2,252		3			2,346		3			2,530		3			2,623		4
Equity securities:
Common stocks and mutual funds			108		—			37		—			37		—			62		—			134		—
Preferred stocks			323		—			273		—			236		—			237		1			165		—
Commercial mortgage loans			6,179		8			6,170		8			6,133		8			6,175		8			6,149		8
Restricted commercial mortgage loans related to securitization entities			155		—			161		—			175		—			181		—			188		—
Policy loans			1,565		2			1,568		2			1,567		2			1,584		2			1,506		2
Cash, cash equivalents and short-term investments			4,217		6			6,162		8			4,003		6			4,413		6			5,315		7
Securities lending			415		1			347		—			367		—			337		—			323		1
Other invested assets:	Limited partnerships		177		—			188		—			195		—			216		—			215		—
	Derivatives:
	Long-term care (LTC) forward starting swap—cash flow		1,087		1			629		1			768		1			423		1			948		1
	Other cash flow		7		—			8		—			8		—			8		—			9		—
	Equity index options—non-qualified		36		—			30		—			15		—			12		—			15		—
	Other non-qualified		537		1			445		1			534		1			416		—			512		1
	Trading portfolio		471		1			447		1			458		1			368		1			218		—
	Restricted other invested assets related to securitization entities		422		1			413		1			412		1			410		1			411		1
	Other		19		—			18		—			51		—			52		—			49		—

Total invested assets and cash		$	76,008		100	%	$	75,093		100	%	$	75,605		100	%	$	75,262		100	%	$	77,889		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	15,385		34	%	$	14,785		34	%	$	15,057		33	%	$	14,920		33	%	$	15,520		33	%
AA			4,174		10			4,121		10			4,603		10			4,763		11			4,849		11
A			12,664		28			12,155		28			13,485		30			13,376		30			13,781		30
BBB			11,213		25			10,720		25			10,667		24			10,576		23			10,715		23
BB			1,464		3			1,200		3			1,234		3			1,276		3			1,385		3
B			141		—			63		—			50		—			68		—			76		—
CCC and lower			77		—			92		—			95		—			99		—			108		—

Total public fixed maturity securities		$	45,118		100	%	$	43,136		100	%	$	45,191		100	%	$	45,078		100	%	$	46,434		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	1,614		10	%	$	1,531		10	%	$	1,725		11	%	$	1,641		11	%	$	1,509		10	%
AA			1,923		13			1,899		13			1,966		13			1,941		13			1,945		13
A			4,725		31			4,731		31			4,737		31			4,781		31			4,792		31
BBB			6,009		40			6,003		40			6,060		39			5,840		38			5,998		39
BB			772		5			777		5			839		5			973		6			910		6
B			104		1			104		1			114		1			101		1			126		1
CCC and lower			25		—			16		—			14		—			13		—			18		—

Total private fixed maturity securities		$	15,172		100	%	$	15,061		100	%	$	15,455		100	%	$	15,290		100	%	$	15,298		100	%

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

⁽²⁾	Nationally Recognized Statistical Rating Organizations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Fixed Maturity Securities Summary

(amounts in millions)


	March 31, 2016					December 31, 2015					September 30, 2015					June 30, 2015					March 31, 2015
	Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total
Fixed Maturity Securities—Security Sector:
U.S. government, agencies and government-sponsored enterprises	$	6,524		11	%	$	6,203		11	%	$	5,913		10	%	$	5,721		9	%	$	6,132		10	%
State and political subdivisions		2,517		4			2,438		4			2,448		4			2,389		4			2,351		4
Foreign government		2,080		3			2,015		3			1,935		3			1,955		3			1,837		3
U.S. corporate		25,389		43			24,401		42			25,679		43			25,135		42			25,806		42
Foreign corporate		12,629		21			12,199		21			13,027		22			13,628		23			13,961		23
Residential mortgage-backed securities		5,122		8			5,101		9			5,118		8			5,085		9			5,153		8
Commercial mortgage-backed securities		2,713		4			2,559		4			2,587		4			2,582		4			2,690		4
Other asset-backed securities		3,316		6			3,281		6			3,939		6			3,873		6			3,802		6

Total fixed maturity securities	$	60,290		100	%	$	58,197		100	%	$	60,646		100	%	$	60,368		100	%	$	61,732		100	%

Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	8,128		23	%	$	7,746		22	%	$	8,290		23	%	$	8,047		22	%	$	8,219		22	%
Utilities		5,275		15			4,453		13			4,618		12			4,568		12			4,788		13
Energy		2,908		8			3,839		11			4,249		11			4,403		12			4,555		12
Consumer—non-cyclical		4,894		14			4,619		13			4,647		13			4,504		12			4,614		12
Consumer—cyclical		2,150		6			2,119		6			2,288		6			2,319		6			2,361		6
Capital goods		2,444		7			2,361		7			2,461		7			2,434		7			2,417		7
Industrial		1,980		5			1,915		6			2,130		6			2,224		6			2,309		6
Technology and communications		3,019		8			2,872		8			3,095		8			3,107		9			3,091		8
Transportation		1,750		5			1,689		5			1,695		5			1,629		5			1,687		4
Other		3,162		9			3,049		9			3,213		9			3,356		9			3,508		10

Subtotal		35,710		100	%		34,662		100	%		36,686		100	%		36,591		100	%		37,549		100	%

Non-Investment Grade:
Finance and insurance		306		13	%		359		19	%		381		19	%		443		20	%		471		21	%
Utilities		78		4			83		4			67		3			68		3			67		3
Energy		693		30			348		18			400		20			409		19			363		16
Consumer—non-cyclical		226		10			229		12			230		11			257		12			262		12
Consumer—cyclical		86		4			82		4			98		5			99		5			117		5
Capital goods		216		9			193		10			204		10			234		11			236		11
Industrial		279		12			244		13			254		13			240		11			238		11
Technology and communications		320		14			309		16			293		14			336		15			365		16
Transportation		2		—			2		—			2		—			3		—			19		1
Other		102		4			89		4			91		5			83		4			80		4

Subtotal		2,308		100	%		1,938		100	%		2,020		100	%		2,172		100	%		2,218		100	%

Total	$	38,018		100	%	$	36,600		100	%	$	38,706		100	%	$	38,763		100	%	$	39,767		100	%

Fixed Maturity Securities—Contractual Maturity Dates:

Due in one year or less	$	1,879		3	%	$	1,744		3	%	$	2,075		4	%	$	2,003		3	%	$	1,830		3	%
Due after one year through five years		10,730		18			10,192		18			10,817		18			10,935		19			10,838		18
Due after five years through ten years		11,964		20			11,917		20			12,155		20			12,212		20			12,193		20
Due after ten years		24,566		41			23,403		40			23,955		40			23,678		39			25,226		41

Subtotal		49,139		82			47,256		81			49,002		82			48,828		81			50,087		82
Mortgage and asset-backed securities		11,151		18			10,941		19			11,644		18			11,540		19			11,645		18

Total fixed maturity securities	$	60,290		100	%	$	58,197		100	%	$	60,646		100	%	$	60,368		100	%	$	61,732		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

General Account GAAP Net Investment Income Yields

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
GAAP Net Investment Income
Fixed maturity securities—taxable	$	641		$	634		$	647		$	645		$	632		$	2,558
Fixed maturity securities—non-taxable		3			3			3			3			3			12
Commercial mortgage loans		81			85			84			83			85			337
Restricted commercial mortgage loans related to securitization entities		2			4			3			3			4			14
Equity securities		5			4			3			4			4			15
Other invested assets		32			30			22			17			33			102
Limited partnerships		6			2			4			20			7			33
Restricted other invested assets related to securitization entities		2			2			1			1			1			5
Policy loans		35			36			33			35			33			137
Cash, cash equivalents and short-term investments		5			3			3			4			3			13

Gross investment income before expenses and fees		812			803			803			815			805			3,226
Expenses and fees		(23	)		(22	)		(20	)		(22	)		(24	)		(88	)

Net investment income	$	789		$	781		$	783		$	793		$	781		$	3,138

Annualized Yields
Fixed maturity securities—taxable		4.7	%		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%
Fixed maturity securities—non-taxable		3.6	%		3.5	%		3.5	%		3.5	%		3.5	%		3.5	%
Commercial mortgage loans		5.2	%		5.5	%		5.5	%		5.4	%		5.6	%		5.5	%
Restricted commercial mortgage loans related to securitization entities		5.1	%		9.5	%		6.4	%		7.2	%		8.2	%		8.0	%
Equity securities		5.1	%		5.1	%		4.0	%		5.6	%		6.1	%		5.2	%
Other invested assets		29.4	%		27.4	%		22.2	%		24.2	%		60.6	%		30.7	%
Limited partnerships⁽¹⁾		13.2	%		4.2	%		7.8	%		37.0	%		12.0	%		15.5	%
Restricted other invested assets related to securitization entities		2.0	%		2.0	%		1.0	%		1.0	%		1.0	%		1.3	%
Policy loans		8.9	%		9.2	%		8.4	%		9.1	%		8.8	%		8.9	%
Cash, cash equivalents and short-term investments		0.4	%		0.2	%		0.3	%		0.3	%		0.2	%		0.3	%

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

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

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 49 herein for average invested assets and cash used in the yield calculation.

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

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

(amounts in millions)


	2016			2015
	1Q			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	(4	)	$	7		$	(2	)	$	—		$	—		$	5
U.S. government, agencies and government-sponsored enterprises		4			1			—			—			1			2
Foreign corporate		(5	)		(4	)		(1	)		(1	)		(4	)		(10	)
Foreign government		—			—			—			1			—			1
Mortgage-backed securities		—			—			(2	)		1			—			(1	)
Asset-backed securities		—			(1	)		(1	)		—			—			(2	)
Equity securities		—			—			2			8			5			15
Foreign exchange		—			1			1			—			1			3

Total net realized gains (losses) on available-for-sale securities		(5	)		4			(3	)		9			3			13

Impairments:
Corporate fixed maturity securities		(5	)		(9	)		(4	)		—			—			(13	)
Limited partnerships		(2	)		—			—			—			—			—
Commercial mortgage loans		—			—			(1	)		—			(2	)		(3	)
Other asset-backed securities		—			—			(1	)		—			—			(1	)

Total impairments		(7	)		(9	)		(6	)		—			(2	)		(17	)

Net unrealized gains (losses) on trading securities		18			(6	)		8			(11	)		4			(5	)
Derivative instruments		(25	)		2			(34	)		4			(21	)		(49	)
Commercial mortgage loans held-for-sale market valuation allowance		1			1			—			2			1			4
Contingent purchase price valuation change		—			—			2			—			—			2
Net gains (losses) related to securitization entities		5			(2	)		—			1			5			4

Net investment gains (losses), net of taxes		(13	)		(10	)		(33	)		5			(10	)		(48	)
Adjustment for DAC and other intangible amortization and certain benefit reserves, net of taxes		6			8			6			5			4			23
Adjustment for net investment (gains) losses attributable to noncontrolling interests, net of taxes		(6	)		2			5			(6	)		5			6

Net investment gains (losses), net	$	(13	)	$	—		$	(22	)	$	4		$	(1	)	$	(19	)

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

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	(716	)	$	(615	)	$	(1,083	)	$	(1,643	)	$	(1,274	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	10,160		$	10,281		$	10,564		$	10,958		$	11,288
GAAP Basis ROE ^(1)/(2)		-7.0	%		-6.0	%		-10.3	%		-15.0	%		-11.3	%

Operating ROE
Net operating income (loss) for the twelve months ended⁽¹⁾	$	204		$	255		$	(78	)	$	(465	)	$	(430	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	10,160		$	10,281		$	10,564		$	10,958		$	11,288
Operating ROE ^(1)/(2)		2.0	%		2.5	%		-0.7	%		-4.2	%		-3.8	%

Quarterly Average ROE	Three months ended
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	53		$	(292	)	$	(284	)	$	(193	)	$	154
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	9,842		$	9,958		$	10,241		$	10,507		$	10,555
Annualized GAAP Quarterly Basis ROE ^(3)/(4)		2.2	%		-11.7	%		-11.1	%		-7.3	%		5.8	%

Operating ROE
Net operating income (loss) for the period ended⁽³⁾	$	103		$	(82	)	$	64		$	119		$	154
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	9,842		$	9,958		$	10,241		$	10,507		$	10,555
Annualized Operating Quarterly Basis ROE ^(3)/(4)		4.2	%		-3.3	%		2.5	%		4.5	%		5.8	%

Non-GAAP Definition for Operating ROE

The company references the non-GAAP financial measure entitled “operating return on equity” or “operating ROE.” The company defines operating ROE as net operating income (loss) divided by average ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss) in average ending Genworth Financial, Inc.’s stockholders’ equity. Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders divided by average ending Genworth Financial, Inc.’s stockholders’ equity determined in accordance with GAAP.

⁽¹⁾	The twelve months ended information is derived by adding the four quarters of net income (loss) available to Genworth Financial, Inc.’s common stockholders and net operating income (loss) from page 9 herein.

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

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

Reconciliation of Core Yield


		2016			2015
	(Assets—amounts in billions)	1Q			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	76.0		$	75.1		$	75.6		$	75.3		$	77.9		$	75.1
	Subtract:
	Securities lending		0.4			0.3			0.4			0.3			0.3			0.3
	Unrealized gains (losses)		6.3			4.2			5.4			4.9			7.8			4.2

	Adjusted end of period invested assets and cash	$	69.3		$	70.6		$	69.8		$	70.1		$	69.8		$	70.6

(A)	Average Invested Assets and Cash Used in Reported Yield Calculation	$	70.0		$	70.2		$	70.0		$	70.0		$	69.7		$	70.0
	Subtract:
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		0.2			0.2			0.2			0.2			0.2			0.2

(B)	Average Invested Assets and Cash Used in Core Yield Calculation		69.8			70.0			69.8			69.8			69.5			69.8
	Subtract:
	Portfolios supporting floating products and non-recourse funding obligations⁽²⁾		2.5			3.5			3.5			3.6			3.7			3.6

(C)	Average Invested Assets and Cash Used in Core Yield (excl. Floating and Non-Recourse Funding) Calculation	$	67.3		$	66.5		$	66.3		$	66.2		$	65.8		$	66.2

	(Income—amounts in millions)

(D)	Reported—Net Investment Income	$	789		$	781		$	783		$	793		$	781		$	3,138
	Subtract:
	Bond calls and commercial mortgage loan prepayments		11			18			12			17			14			61
	Other non-core items⁽³⁾		15			(2	)		1			(4	)		7			2
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		3			3			2			2			3			10

(E)	Core Net Investment Income		760			762			768			778			757			3,065
	Subtract:
	Investment income from portfolios supporting floating products and non-recourse funding obligations⁽²⁾		15			16			21			26			20			83

(F)	Core Net Investment Income (excl. Floating and Non-Recourse Funding)	$	745		$	746		$	747		$	752		$	737		$	2,982

(D) / (A)	Reported Yield		4.51	%		4.45	%		4.47	%		4.53	%		4.48	%		4.48	%
(E) / (B)	Core Yield		4.36	%		4.35	%		4.40	%		4.46	%		4.36	%		4.39	%
(F) / (C)	Core Yield (excl. Floating and Non-Recourse Funding)		4.43	%		4.49	%		4.51	%		4.54	%		4.48	%		4.51	%

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

FIRST QUARTER 2016

Financial Strength Ratings As Of April 27, 2016


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 Mortgage Insurance Corporation	BB+	Ba1	Not rated
Genworth Financial Mortgage Insurance Company Canada⁽¹⁾	A+	Not rated	Not rated
Genworth Financial Mortgage Insurance Pty Limited (Australia)⁽²⁾	A+	A3	Not rated
Genworth Financial Mortgage Insurance Limited (Europe)	B	Not rated	Not rated
Genworth Life Insurance Company	BB	Ba1	B++
Genworth Life and Annuity Insurance Company	BB	Baa2	B++
Genworth Life Insurance Company of New York	BB	Ba1	B++

The S&P, Moody’s, A.M. Best, Dominion Bond Rating Service (DBRS) and Fitch Rating Service (Fitch) 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), “BB” (Marginal) or “B” (Weak) have strong, marginal or weak financial security characteristics, respectively. The “A,” “BB” and “B” ranges are the third-, fifth- and sixth-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+,” “BB+,” “BB” and “B” ratings are the fifth-, eleventh-, twelfth- and fifteenth-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,” “Baa2” and “Ba1” ratings are the seventh-, ninth- and eleventh-highest, respectively, of Moody’s 21 ratings categories.

A.M. Best states that the “B++” (Good) rating is assigned to those companies that have, in its opinion, a good ability to meet their ongoing insurance obligations. The “B++” (Good) rating is the fifth-highest of 15 ratings assigned by A.M. Best, which range from “A++” to “F.”

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.

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.

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

S&P, Moody’s, A.M. Best, DBRS, Fitch and HR Ratings 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 Company Canada is also rated “AA” by DBRS.

⁽²⁾	Genworth Financial Mortgage Insurance Pty Limited (Australia) is also rated “A+” by Fitch.

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Form 8-K GENWORTH FINANCIAL INC For: Apr 28

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