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 29, 2021

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<br> <br>of incorporation)	(Commission<br> <br>File Number)	(I.R.S. Employer<br> <br>Identification No.)
6620 West Broad Street, Richmond, VA	23230
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(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)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br>Symbol	Name of each exchange<br>on which registered
Class A Common Stock, par value $.001 per share	GNW	New York Stock Exchange

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

Emerging growth company ☐

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

Item 2.02	Results of Operations and Financial Condition.

On April 29, 2021, Genworth Financial, Inc. (the “Company”) issued (1) a press release announcing its financial results for the quarter ended March 31, 2021, 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, 2021, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

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

Item 9.01	Financial Statements and Exhibits.

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

Exhibit<br>Number	Description of Exhibit
99.1	Press Release dated April 29, 2021
99.2	Financial Supplement for the quarter ended March 31, 2021
104	Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document)

SIGNATURES

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

	GENWORTH FINANCIAL, INC.
Date: April 29, 2021	By:	/s/ Matthew D. Farney
		Matthew D. Farney
		Vice President and Controller
		(Principal Accounting Officer)

EX-99.1

Exhibit 99.1

LOGO

Genworth Financial Announces First Quarter 2021 Results

First Quarter Net Income Of $187 Million And Adjusted Operating Income Of $168 Million

•	Executing On The Company’s Strategic Plan Following The Termination Of The Merger Agreement With China<br>Oceanwide Holdings Group Co., Ltd (Oceanwide)
-	Completed Sale Of Genworth’s Interest In Genworth Mortgage Insurance Australia Limited (Genworth<br>Australia) During The Quarter, Resulting In Net Proceeds Of $123 Million After $247 Million Payment To AXA S.A. (AXA) Under The Outstanding Promissory Note
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-	Continued Progress On Planned Partial Initial Public Offering (IPO) Of U.S. Mortgage Insurance<br>(MI) Business
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•	U.S. MI Adjusted Operating Income Of $126 Million, 33 Percent Above Prior Quarter
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-	New Delinquencies Continued To Decline, Down 16 Percent From The Prior Quarter
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•	U.S. MI’s PMIERs^1^ Sufficiency Ratio Estimated At 159<br>Percent, $1,764 Million Above Published Requirements
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•	U.S. Life Insurance Segment Adjusted Operating Income Of $62 Million Driven By LTC^2^ Results Benefitting From High Claim Terminations In The Quarter
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•	Continued Progress Toward LTC Multi-Year Rate Action Plan (MYRAP) With $157 Million Incremental Annual Rate<br>Increases Approved In First Quarter, With An Estimated Net Present Value Of Approximately $0.7 Billion
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•	Holding Company Cash And Liquid Assets Of $757 Million, Including $60 Million Restricted, With $729 Million<br>Holding Company Debt Retired During The Quarter, Including Partial Prepayment Of AXA Promissory Note
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Richmond, VA (April 29, 2021) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended March 31, 2021. The company reported net income^3^ of $187 million, or $0.37 per diluted share, in the first quarter of 2021, compared with a net loss of $66 million, or $0.13 per diluted share, in the first quarter of 2020. The company reported adjusted operating income^4^ of $168 million, or $0.33 per diluted share, in the first quarter of 2021, compared with adjusted operating income of $20 million, or $0.04 per diluted share, in the first quarter of 2020.

^1^	Private Mortgage Insurer Eligibility Requirements.
^2^	Long term care insurance.
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^3^	Unless otherwise stated, all references in this press release to net income (loss), net income (loss) per<br>share, adjusted operating income (loss), adjusted operating income (loss) per share and book value per share should be read as net income (loss) available to Genworth’s common stockholders, net income (loss) available to Genworth’s common<br>stockholders per diluted share, adjusted operating income (loss) available to Genworth’s common stockholders, adjusted operating income (loss) available to Genworth’s common stockholders per diluted share and book value available to<br>Genworth’s common stockholders per share, respectively.
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^4^	This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (Non-GAAP). See the Use of Non-GAAP Measures section of this press release for additional information.
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Following the sale of Genworth Australia, Australia MI segment results are reported as discontinued operations, and all prior periods have been re-presented accordingly.

Strategic Update

Since the beginning of the year, Genworth has continued to make significant progress on its strategic plan to create long-term shareholder value. Steps taken during the current quarter included the successful sale of the company’s ownership position in Genworth Australia, as well as actions to better align Genworth’s expense structure with current business activities. The company paid its February 2021 debt maturity, repurchased $146 million of its September 2021 maturities and partially pre-paid the promissory note issued in connection with the settlement with AXA.

During the current quarter, the company made continued progress on preparations for a planned offering of a portion of Genworth’s interest in the U.S. MI business. However, because the company is in registration and subject to applicable publicity restrictions, Genworth is unable to comment further or provide any additional detail at this time.

In April 2021, the company announced the termination of its merger agreement with Oceanwide. The Board of Directors determined that Oceanwide would not be able to close the transaction within a reasonable timeframe and terminated the agreement to allow Genworth to pursue its strategic plan without restrictions and without uncertainty regarding its ultimate ownership. Both Genworth and Oceanwide continue to believe that there are significant, compelling opportunities to address critical societal needs outside of the U.S. by bringing long term care solutions to the aging population in China.

“I am pleased with the company’s strong first quarter performance as well as our progress on our strategic plan,” said Tom McInerney, Genworth President and CEO. “We have remained nimble and taken decisive actions to ensure Genworth is well positioned to create value for our stakeholders into the future. Given our current holding company cash position, the actions we’ve already taken with our strategic plan, capital raising efforts and our expected cash flow profile, I am confident in Genworth’s ability to meet the debt obligations over the next several years. We have the right strategy in place and the right team to lead our execution of this strategy, along with guidance from our new independent directors Jill R. Goodman, Howard D. Mills, III and Ramsey D. Smith, whom we are delighted to welcome to our Board of Directors.”

Financial Performance

Consolidated Net Income (Loss) & Adjusted Operating Income
	Three months ended March 31
	2021				2020
(Amounts in millions, except per share)	Total		Per<br>diluted<br>share		Total			Per<br>diluted<br>share			Total<br>% change
Net income (loss) available to Genworth’s common stockholders	$	187	$	0.37	$	(66	)	$	(0.13	)		NM	^5^
Adjusted operating income	$	168	$	0.33	$	20		$	0.04			NM	^5^
Weighted-average diluted shares^6^		513.8				504.3
	As of March 31
	2021				2020
Book value per share			$	29.14				$	28.61
Book value per share, excluding accumulated other comprehensive income (loss)			$	21.88				$	21.05

Net investment gains, net of taxes and other adjustments, increased net income by $26 million in the quarter. The investment gains were driven by mark-to-market gains on limited partnerships in the LTC business and net gains on derivatives. The net loss of $66 million in the first quarter of 2020 included $70 million from investment losses, net of taxes and other adjustments.

Net investment income was $801 million in the quarter, compared to $846 million in the prior quarter and $782 million in the prior year. Net investment income was lower than the prior quarter as a result of lower income from bond calls, commercial mortgage loan prepayments and limited partnerships, primarily in the LTC business. Net investment income increased versus the prior year as a result of higher limited partnership income. The reported yield and the core yield^4^ for the quarter were 4.84 percent and 4.73 percent, respectively, compared to 5.07 percent and 4.80 percent, respectively, in the prior quarter.

Genworth’s effective tax rate on income from continuing operations for the quarter was approximately 25 percent. The effective tax rate was increased by the tax effect of forward starting swap gains settled prior to the change in the corporate tax rate under the 2017 Tax Cuts and Jobs Act, which continue to be tax effected at 35 percent as they are amortized into net investment income.

^5^	The company defines “NM” as not meaningful for increases or decreases greater than 200 percent.<br>
^6^	Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average<br>common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common<br>shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been<br>antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.<br>
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^5^

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

^6^

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

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

Adjusted Operating Income (Loss)
(Amounts in millions)	Q1 21			Q4 20			Q1 20
U.S. Mortgage Insurance	$	126		$	95		$	148
U.S. Life Insurance		62			129			(70	)
Runoff		12			13			(13	)
Corporate and Other		(32	)		(49	)		(45	)
Total Adjusted Operating Income	$	168	****	$	188	****	$	20	****

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

U.S. Mortgage Insurance

Operating Metrics
(Dollar amounts in millions)	Q1 21			Q4 20			Q1 20
Adjusted operating income	$	126		$	95		$	148
Primary new insurance written	$	24,900		$	27,000		$	17,900
Loss ratio		22	%		35	%		8	%

U.S. MI reported adjusted operating income of $126 million, compared with $95 million in the prior quarter and $148 million in the prior year. U.S. MI’s primary insurance in force increased 12 percent versus the prior year from strong new insurance written (NIW), partially offset by lower persistency. Primary NIW decreased eight percent from the prior quarter due to a seasonal decline in purchase mortgage originations and was up 39 percent versus the prior year primarily from higher mortgage originations and a larger private mortgage insurance market, partially offset by lower estimated market share. Earned premiums in the quarter were slightly higher than the prior quarter as insurance in force growth was largely offset by decreased single premium policy cancellations. Current quarter earned premiums increased versus the prior year mainly from higher insurance in force and from increased single premium policy cancellations driven by lower persistency from elevated mortgage refinancing, partially offset by higher ceded premiums from reinsurance transactions and lower average premium rates.

U.S. MI’s current quarter results reflected losses of $55 million and a loss ratio of 22 percent, which were driven by $44 million of losses from new delinquencies and $10 million pre-tax reserve strengthening on pre-COVID-19 delinquencies. New delinquencies decreased by 16 percent from 11,923 in the prior quarter to 10,053. Approximately 54 percent of new primary delinquencies in the current quarter were reported in forbearance plans which may cure at elevated rates relative to historical performance. The reserve strengthening in the current quarter primarily reflects the company’s expectation that pre-COVID-19

delinquencies will have a modestly higher claim rate than the company’s prior best estimate given the slower emergence of cures. Results in the prior quarter and prior year reflected losses of $89 million and $19 million, and a loss ratio of 35 percent and eight percent, respectively. The sequential decrease in losses was driven mainly by the $37 million pre-tax reserve strengthening on forbearance delinquencies in the prior quarter and by lower losses from new delinquencies. Current quarter losses increased versus the prior year driven primarily by higher losses from new delinquencies, the current quarter reserve strengthening and lower net benefits from cures and aging of existing delinquencies.

U.S. Life Insurance

Adjusted Operating Income (Loss)
(Amounts in millions)	Q1 21			Q4 20			Q1 20
Long Term Care Insurance	$	95		$	129		$	1
Life Insurance		(63	)		(20	)		(77	)
Fixed Annuities		30			20			6
Total U.S. Life Insurance	$	62		$	129		$	(70	)

Long Term Care Insurance

Long term care insurance reported adjusted operating income of $95 million, compared with $129 million in the prior quarter and $1 million in the prior year. Claim terminations in the current quarter were higher compared to the prior quarter and prior year. Although it is not the company’s current practice to track cause of death for LTC policyholders and claimants, the elevated terminations impacting the current and prior quarter were likely the result of the COVID-19 pandemic. Net investment income increased versus the prior year, driven primarily by a $23 million after-tax increase in income from limited partnerships, and decreased versus the prior quarter driven primarily by a $15 million after-tax decrease in income from bond calls and commercial mortgage loan prepayments. New claim incidence remained low in the current quarter, which drove continued favorable development on incurred but not reported (IBNR) claim reserves. Since the recent decrease in incidence is assumed to be driven by the COVID-19 pandemic and temporary in nature, IBNR claim reserves were strengthened by an additional $23 million after-tax in the current quarter compared to $37 million after-tax in the prior quarter. The company also assumed that the COVID-19 pandemic has accelerated its mortality experience on the most vulnerable claimants, leaving its overall claim population less likely to terminate compared to the pre-pandemic average population, and therefore strengthened its claim reserves by $53 million after-tax in the current quarter compared to $72 million after-tax in the prior quarter. Earnings continued to benefit from in force rate actions, which were higher than the prior quarter and prior year. Prior quarter earnings also included a net benefit of $13 million after-tax from the completion of the annual review of LTC assumptions and methodologies.

Life Insurance

Life insurance reported an adjusted operating loss of $63 million, compared with adjusted operating losses of $20 million in the prior quarter and $77 million in the prior year. Mortality was significantly higher compared to the prior quarter and prior year, attributable in part to the COVID-19 pandemic. Current quarter results reflected lower deferred acquisition costs (DAC) amortization compared to the prior quarter and prior year, as the large 20-year level-premium term life insurance block written at the end of 2000 entered its post-level premium period following the 60-day grace period. Results also reflected lower reserve increases during the premium grace period in the 10-year term universal life insurance block associated with policies entering the post-level premium period compared to the prior quarter and prior year. During the quarter, the company recorded a $17 million after-tax charge related to DAC recoverability testing in its universal life insurance products. During the prior quarter, the company completed its annual review of life insurance assumptions and recorded a benefit of $10 million after-tax, which included a net $60 million benefit from assumption changes primarily related to its term universal life insurance products, partially offset by a $50 million charge from annual DAC recoverability testing in its universal life insurance products.

Fixed Annuities

Fixed annuities reported adjusted operating income of $30 million, compared with $20 million in the prior quarter and $6 million in the prior year. Results versus the prior quarter and prior year reflected higher mortality in the single premium immediate annuity product and favorable impacts from improved equity markets and interest rates.

Runoff

Runoff reported adjusted operating income of $12 million, compared with adjusted operating income of $13 million in the prior quarter and an adjusted operating loss of $13 million in the prior year. Results in the current quarter reflected a benefit to the company’s variable annuity products from equity market and interest rate performance that was less favorable compared to the prior quarter and favorable compared to the prior year. Results in the prior quarter included a $5 million after-tax charge for the company’s variable annuity products from annual assumption updates.

Corporate And Other

Corporate and Other reported an adjusted operating loss of $32 million, compared with adjusted operating losses of $49 million in the prior quarter and $45 million in the prior year. Results in the current quarter reflected lower corporate operating expenses and lower interest expense compared to both the prior quarter and prior year.

Capital & Liquidity

Genworth maintains the following capital positions in its operating subsidiaries:

Key Capital & Liquidity Metrics
(Dollar amounts in millions)	Q1 21			Q4 20			Q1 20
U.S. MI
Consolidated<br>Risk-To-Capital Ratio^7^		11.7:1			12.1:1			12.2:1
Genworth Mortgage Insurance Corporation Risk-To-Capital Ratio^7^		11.9:1			12.3:1			12.4:1
Private Mortgage Insurer Eligibility Requirements (PMIERs) Sufficiency Ratio^7,^^8^		159	%		137	%		142	%
U.S. Life Insurance Companies
Consolidated Risk-Based Capital (RBC)<br>Ratio^7^		255	%		229	%		194	%
Holding Company Cash and Liquid Assets^9^^,^^10^	$	757		$	1,103		$	575

Key Points

•	U.S. MI’s PMIERs sufficiency ratio is estimated to be 159 percent, $1,764 million above published<br>PMIERs requirements^11^. The PMIERs sufficiency ratio was up 22 points, or $535 million, sequentially, driven in part by the completion of an insurance linked notes (ILN) transaction, which<br>added $495 million of additional PMIERs capital credit as of March 31, 2021, elevated lapse from prevailing low interest rates in the current quarter and business cash flows, partially offset by elevated NIW. Additionally, elevated lapse<br>continued to drive an acceleration of the amortization on existing reinsurance transactions, which caused a reduction in PMIERs capital credit on prior reinsurance transactions in the current quarter;
•	Both the current quarter and prior quarter PMIERs sufficiency benefited from a 0.30 multiplier applied to the<br>risk based required asset factor for certain non-performing loans, which resulted in a reduction of the published PMIERs required assets by an estimated $1,012 million at the end of the current quarter,<br>compared to $1,046 million at the end of the prior quarter. These amounts are gross of incremental reinsurance benefits from the elimination of the 0.30 multiplier;
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^7^	Company estimate for the first quarter of 2021 due to timing of the preparation and filing of statutory<br>statements.
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^8^	The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within the<br>published PMIERs. The current period PMIERs sufficiency ratio is an estimate due to the timing of the PMIERs filing for the U.S. mortgage insurance business. As of March 31, 2021, December 31, 2020 and March 31, 2020, the PMIERs<br>sufficiency ratios were $1,764 million, $1,229 million and $1,171 million, respectively, of available assets above the published PMIERs requirements.
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^9^	Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of<br>outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc.
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^10^	Genworth Holdings, Inc. had $757 million, $1,078 million and $525 million of cash, cash<br>equivalents and restricted cash as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively, which included $60 million and $46 million of restricted cash and cash equivalents as of March 31, 2021 and<br>December 31, 2020, respectively. Genworth Holdings, Inc. also held $25 million and $50 million of restricted U.S. government securities as of December 31, 2020 and March 31, 2020, respectively.
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^11^	The government-sponsored enterprises (GSEs) have imposed certain capital restrictions on the U.S. MI business<br>which remain in effect until certain conditions are met. These restrictions currently require Genworth Mortgage Insurance Corporation, the company’s principal U.S. mortgage insurance subsidiary, to maintain 115 percent of PMIERs minimum<br>required assets among other restrictions.
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•	On April 16, 2021, U.S. MI completed an ILN transaction, which will add $303 million of additional<br>PMIERs capital credit in the second quarter of 2021. Had the recently completed transaction occurred in the first quarter of 2021, U.S. MI’s current quarter PMIERs sufficiency would have been estimated at 176 percent or $2,067 million<br>above the published PMIERs requirements;
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•	Genworth Mortgage Holdings, Inc.^12^ held $284 million of<br>cash as of March 31, 2021, down $16 million from the prior quarter primarily from its semi-annual interest payment on its debt;
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•	U.S. life insurance companies’ consolidated statutory risk-based capital is estimated to be<br>255 percent, up from the prior quarter primarily from favorable impacts of elevated terminations in the LTC business; and
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•	The holding company ended the quarter with $757 million of cash and liquid assets, including<br>$60 million that is restricted. The company has $513 million of outstanding principal due in September 2021, as of the date hereof. During the current quarter, Genworth retired its February 2021 debt of $338 million and repurchased<br>$146 million of its September 2021 maturities. In addition, with the completion of the sale of Genworth Australia and $370 million in proceeds, the company prepaid AXA $245 million of principal and $2 million of accrued interest<br>related to the outstanding promissory note which was secured by shares of Genworth Australia.
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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.

^12^	Genworth’s indirect wholly-owned mortgage insurance subsidiary.

Conference Call And Financial Supplement Information

This press release and the first quarter 2021 financial supplement are now posted on the company’s website. Additional information regarding business results will be posted on the company’s website, http://investor.genworth.com, by 8:00 a.m. on April 30, 2021. Investors are encouraged to review these materials.

Genworth will conduct a conference call on April 30, 2021 at 9:00 a.m. (ET) to discuss the quarter’s results. Genworth’s conference call will be accessible via telephone and the Internet. The dial-in number for Genworth’s April 30^th^ conference call is 888 208.1820 or 323 794.2110 (outside the U.S.); conference ID # 8911906. To participate in the call by webcast, register at http://investor.genworth.com at least 15 minutes prior to the webcast to download and install any necessary software.

A replay of the call will be available at 888 203.1112 or 719 457.0820 (outside the U.S.); conference ID # 8911906 through May 15, 2021. The webcast will also be archived on the company’s website for one year.

Use of Non-GAAP Measures

This press release includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.

While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Genworth Financial, Inc.’s common stockholders or net income (loss) available to Genworth Financial, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21 percent tax rate. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves.

The company repurchased $146 million and $14 million principal amount of Genworth Holdings, Inc.’s (Genworth Holdings) senior notes with 2021 maturity dates for a pre-tax gain (loss) of $(4) million and $1 million in the first quarters of 2021 and 2020, respectively. In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, the company’s indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income as they relate to gains (losses) on the early extinguishment of debt.

The company recorded a pre-tax expense of $21 million in the first quarter of 2021 and $1 million in each of the fourth and first quarters of 2020 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income during the periods presented.

The tables at the end of this press release provide a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income for the three months ended March 31, 2021 and 2020, as well as for the three months ended December 31, 2020, and reflect adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.

This press release includes the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP. In addition, the company’s definition of core yield may differ from the definitions used by other companies. A reconciliation of reported U.S. GAAP yield to core yield is included in a table at the end of this press release.

Definition of Selected Operating Performance Measures

The company taxes its businesses at the U.S. corporate federal income tax rate of 21 percent. Each segment is then adjusted to reflect the unique tax attributes of that segment, such as permanent differences between U.S. GAAP and tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.

The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.

The company reports selected operating performance measures including “sales” and “insurance in force” or “risk in force” which are commonly used in the insurance industry as measures of operating performance.

Management regularly monitors and reports sales metrics as a measure of volume of new business generated in a period. Sales refer to new insurance written for mortgage insurance products. The company considers new insurance written to be a measure of the company’s operating performance because it represents a measure of new sales of insurance policies during a specified period, rather than a measure of the company’s revenues or profitability during that period.

Management regularly monitors and reports insurance in force and risk in force for the company’s U.S. mortgage insurance business. Insurance in force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans the company insures. Risk in force is based on the coverage percentage applied to the estimated current outstanding loan balance. The company considers insurance in force and risk in force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.

Management also regularly monitors and reports a loss ratio for the company’s businesses. For the U.S. mortgage insurance business, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.

These operating performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company’s future business and financial performance. Examples of forward-looking statements include statements the company makes relating to transactions it is pursuing to address its near-term liabilities and financial obligations, which may include additional debt financing and/or a transaction to sell a percentage of its ownership interests in its U.S. mortgage insurance business, as well as statements the company makes regarding the potential impacts of the COVID-19 pandemic. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, business, competitive, market, regulatory and other factors and risks, including, but not limited to, the following:

• the company may be unable tosuccessfully execute strategic plans to effectively address its current business challenges including: the company’s inability to successfully execute on any of its strategic plans to effectively address its current business challenges (including addressing its debt maturities and other near-term liabilities and financial obligations, reducing costs, stabilizing its U.S. life insurance businesses without additional capital contributions, and improving overall capital and ratings); the risk that the impacts of or uncertainty created by the COVID-19 pandemic delay or hinder alternative transactions or otherwise make alternative transactions less attractive; the ability to pursue alternative strategic transactions; the company’s inability to attract buyers for any businesses or other assets it may seek to sell, or securities it may seek to issue (including a planned partial sale through an initial public offering of its U.S. mortgage insurance business) in each case, in a timely manner and on anticipated terms; an inability to increase the capital needed in the company’s businesses in a timely manner and on anticipated terms, including through improved business performance, reinsurance or similar transactions, asset sales, debt issuances, securities offerings or otherwise, in each case as and when required; a failure to obtain any required regulatory, stockholder, noteholder approvals and/or other third-party approvals or consents for such alternative strategic transactions; the company’s challenges changing or being more costly or difficult to successfully address than currently anticipated or the benefits achieved being less than anticipated; an inability to achieve anticipated cost-savings in a timely manner; and adverse tax or accounting charges;

• risksrelated to the termination of the Oceanwide transaction including: the risk that the company’s decision to terminate the merger agreement with China Oceanwide Holdings Group Co., Ltd (together with its affiliates, “Oceanwide”) may adversely affect the company’s business and the price of its common stock; greater difficulty in executing alternative transactions to effectively address its near-term liabilities and financial obligations, including the risks that it will be unable to raise additional debt financing and/or sell a percentage of its ownership interest in its U.S. mortgage insurance business to repay/refinance future debt maturities and the promissory note to AXA; potential legal proceedings may be instituted against the company in connection with the termination of the Oceanwide transaction; potential adverse reactions or changes to the company’s business relationships with clients, employees, suppliers or other parties or other business uncertainties resulting from the termination of the Oceanwide transaction, including but not limited to such changes that could affect the company’s financial performance; the possibility that the company may be unable to pursue potential future opportunities with Oceanwide to offer insurance products in China; continued availability of capital and financing to the company under acceptable terms; further rating agency actions and downgrades in the company’s credit or financial strength ratings; the inability to reduce costs due to the termination of the Oceanwide transaction, including in connection with any proposed resource alignment; and the company’s ability to attract, recruit, retain and motivate current and prospective employees may be adversely affected due to the termination of the Oceanwide transaction;

• 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 in the future to its assumptions, methodologies or otherwise in connection with periodic or other reviews); risks related to the impact of the company’s annual review of assumptions and methodologies related to its long term care insurance claim reserves and margin reviews, including risks that additional information obtained in the future or other changes to assumptions or methodologies materially affect margins; the inability to accurately estimate the impacts of the COVID-19 pandemic; inaccurate models; deviations from the company’s estimates and actuarial assumptions or other reasons in its long term care insurance, life insurance and/or annuity businesses; accelerated amortization of deferred acquisition costs (DAC) and present value of future profits (PVFP) (including as a result of any future changes it 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 its long term care insurance business); and changes in valuation of fixed maturity and equity securities;

• liquidity, financialstrength ratings, credit and counterparty risks including: insufficient internal sources to meet liquidity needs and limited or no access to capital; an inability to obtain further financing, either by raising capital through issuing additional debt or equity and/or selling a percentage of the company’s ownership interest in its U.S. mortgage insurance business, including a planned partial initial public offering of the company’s U.S. mortgage insurance business and/or the issuance of debt, convertible or equity-linked securities, prior to the company’s future debt maturities, or ability to obtain a secured term loan or credit facility; the impact on holding company liquidity caused by the inability to receive dividends or other returns of capital from the company’s U.S. mortgage insurance business as a result of the COVID-19 pandemic; the impact of increased leverage as a result of the AXA settlement and related restrictions; continued availability of capital and financing; future adverse rating agency actions against the company or its U.S. mortgage insurance subsidiary, including with respect to rating downgrades or potential downgrades or being put on review for potential downgrade, all of which could have adverse implications, 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; defaults on the company’s commercial mortgage loans; defaults on mortgage loans or other assets underlying the company’s investments in its mortgage and asset-backed securities and volatility in performance;

• risks relating to economic, market and political conditions including: downturns and volatility in global economies and equity and credit markets, including as a result of prolonged unemployment, a sustained low interest rate environment and other displacements caused by the COVID-19 pandemic; interest rates and changes in rates have adversely impacted, and may continue to materially adversely impact, the company’s business and profitability; deterioration in economic conditions or a decline in home prices that adversely affect the company’s loss experience in the company’s U.S. mortgage insurance business; political and economic instability or changes in government policies; and fluctuations in foreign currency exchange rates and international securities markets;

• regulatory and legal risks including: extensive regulation of the company’s businesses and changes in applicable laws and regulations (including changes to tax laws and regulations); litigation and regulatory investigations or other actions; dependence on dividends and other distributions from the company’s subsidiaries, particularly its U.S. mortgage insurance subsidiaries, and the inability of any subsidiaries to pay dividends or make other distributions to the company, including as a result of the performance of its subsidiaries, heightened regulatory restrictions resulting from the COVID-19 pandemic, and other insurance, regulatory or corporate law restrictions; the inability to successfully seek in force rate action increases (including increased premiums and associated benefit reductions) in the company’s long term care insurance business, including as a result of the COVID-19 pandemic; adverse change in regulatory requirements, including risk-based capital; inability to continue to maintain PMIERs; risks on the company’s U.S. mortgage insurance subsidiary’s ability to pay its holding company dividends as a result of the GSEs’ amendments to PMIERs in response to COVID-19; the impact on capital levels of increased delinquencies caused by the COVID-19 pandemic; inability of the company’s U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements; the influence of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and a small number of large mortgage lenders on the U.S. mortgage insurance market and adverse changes to

the role or structure of Fannie Mae and Freddie Mac; adverse changes in regulations affecting the company’s U.S. mortgage insurance business; additional restrictions placed on the company’s U.S. mortgage insurance business by government and government-owned and the GSEs in connection with a new debt financing and/or sale of a percentage of its ownership interests therein; inability to continue to implement actions to mitigate the impact of statutory reserve requirements; changes in tax laws; and changes in accounting and reporting standards;

• operational risks including: the inability to retain, attract and motivate qualified employees or senior management; the impact on processes caused by shelter-in-place or other governmental restrictions imposed as a result of the COVID-19 pandemic; reliance on, and loss of, key customer or distribution relationships; the design and effectiveness of the company’s disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations; and failure or any compromise of the security of the company’s computer systems, disaster recovery systems, business continuity plans and failures to safeguard or breaches of confidential information;

• insurance and product-related risks including: the company’s inability to increase premiums and reduce benefits sufficiently, and in a timely manner, on its in force long term care insurance policies, in each case, as currently anticipated and as may be required from time to time in the future (including as a result of a delay or failure to obtain any necessary regulatory approvals, including as a result of the COVID-19 pandemic, or unwillingness or inability of policyholders to pay increased premiums and/or accept reduced benefits), including to offset any negative impact on the company’s long term care insurance margins; availability, affordability and adequacy of reinsurance to protect the company against losses; decreases in the volume of mortgage originations or increases in mortgage insurance cancellations; increases in the use of alternatives to private mortgage insurance and reductions in the level of coverage selected; potential liabilities in connection with the company’s U.S. contract underwriting services; and medical advances, such as genetic research and diagnostic imaging, and related legislation that impact policyholder behavior in ways adverse to the company;

• other risks including: the occurrence of natural or man-made disasters or a pandemic, similar to the COVID-19 pandemic, could materially adversely affect its financial condition and results of operations.

The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. This press release does not constitute an offering of any securities.

#

Contact Information:

Investors:	investorinfo@genworth.com
Media:	Julie Westermann, 804 662.2423
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julie.westermann@genworth.com

Condensed Consolidated Statements of Income

(Amounts in millions, except per share amounts)

(Unaudited)

	Three monthsended March 31,					Three monthsendedDecember 31,
	2021		2020			2020
Revenues:
Premiums	$	968	$	946		$	970
Net investment income		801		782			846
Net investment gains (losses)		33		(99	)		147
Policy fees and other income		183		180			191
Total revenues		1,985		1,809			2,154
Benefits and expenses:
Benefits and other changes in policy reserves		1,218		1,337			1,157
Interest credited		131		141			132
Acquisition and operating expenses, net of deferrals		275		237			253
Amortization of deferred acquisition costs and intangibles		77		108			174
Interest expense		51		51			55
Total benefits and expenses		1,752		1,874			1,771
Income (loss) from continuing operations before income taxes		233		(65	)		383
Provision (benefit) for income taxes		59		(5	)		82
Income (loss) from continuing operations		174		(60	)		301
Income (loss) from discontinued operations, net of taxes		21		(12	)		(35	)
Net income (loss)		195		(72	)		266
Less: net income (loss) from continuing operations attributable to noncontrolling<br>interests		—		—			—
Less: net income (loss) from discontinued operations attributable to noncontrolling<br>interests		8		(6	)		(1	)
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	187	$	(66	)	$	267
Net income (loss) available to Genworth Financial, Inc.’s common stockholders:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common<br>stockholders	$	174	$	(60	)	$	301
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common<br>stockholders		13		(6	)		(34	)
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	187	$	(66	)	$	267
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common<br>stockholders per share:
Basic	$	0.35	$	(0.12	)	$	0.60
Diluted	$	0.34	$	(0.12	)	$	0.59
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per<br>share:
Basic	$	0.37	$	(0.13	)	$	0.53
Diluted	$	0.37	$	(0.13	)	$	0.52
Weighted-average common shares outstanding:
Basic		506.0		504.3			505.6
Diluted^6^		513.8		504.3			512.5

Reconciliation of Net Income (Loss) to Adjusted Operating Income

(Amounts in millions, except per share amounts)

(Unaudited)

	Three monthsended March 31,						Three monthsendedDecember 31,
	2021			2020			2020
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	187		$	(66	)	$	267
Add: net income (loss) from continuing operations attributable to noncontrolling<br>interests		—			—			—
Add: net income (loss) from discontinued operations attributable to noncontrolling<br>interests		8			(6	)		(1	)
Net income (loss)		195			(72	)		266
Less: income (loss) from discontinued operations, net of taxes		21			(12	)		(35	)
Income (loss) from continuing operations		174			(60	)		301
Less: net income (loss) from continuing operations attributable to noncontrolling<br>interests		—			—			—
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common<br>stockholders		174			(60	)		301
Adjustments to income (loss) from continuing operations available to Genworth Financial,<br>Inc.’s common stockholders:
Net investment (gains) losses, net^13^		(33	)		88			(144	)
(Gains) losses on early extinguishment of debt		4			12			—
Expenses related to restructuring		21			1			1
Taxes on adjustments		2			(21	)		30
Adjusted operating income	$	168		$	20		$	188
Adjusted operating income (loss):
U.S. Mortgage Insurance segment	$	126		$	148		$	95
U.S. Life Insurance segment:
Long Term Care Insurance		95			1			129
Life Insurance		(63	)		(77	)		(20	)
Fixed Annuities		30			6			20
Total U.S. Life Insurance segment		62			(70	)		129
Runoff segment		12			(13	)		13
Corporate and Other		(32	)		(45	)		(49	)
Adjusted operating income	$	168		$	20		$	188
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per<br>share:
Basic	$	0.37		$	(0.13	)	$	0.53
Diluted	$	0.37		$	(0.13	)	$	0.52
Adjusted operating income per share:
Basic	$	0.33		$	0.04		$	0.37
Diluted	$	0.33		$	0.04		$	0.37
Weighted-average common shares outstanding:
Basic		506.0			504.3			505.6
Diluted^6^		513.8			504.3			512.5
^13^	For the three months ended March 31, 2020 and December 31, 2020, net investment (gains) losses were<br>adjusted for DAC and other intangible amortization and certain benefit reserves of $(11) million and $3 million, respectively.
---	---

Reconciliation of Adjusted Operating Income Previously Reported to Adjusted Operating Income

Re-Presented to Exclude Discontinued Operations

(Amounts in millions)

	Three months ended
	March 31,			December 31
	2020			2020
Adjusted operating income as previously reported	$	33		$	173
Remove Australia Mortgage Insurance segment adjusted operating (income) loss reported as<br>discontinued operations		(9	)		16
Adjustment for corporate overhead allocations, net of taxes^14^		(4	)		(5	)
Tax adjustments^15^		—			4
Re-presented adjusted operating income	$	20		$	188
^14^	Expenses previously reported in the Australia MI segment and moved to Corporate and Other Activities.<br>
---	---
^15^	Tax impacts resulting from the classification of Genworth Australia as discontinued operations.<br>
---	---

Condensed Consolidated Balance Sheets

(Amounts in millions)

	March 31,			December 31,
	2021			2020
	(Unaudited)
Assets
Cash, cash equivalents, restricted cash and invested assets	$	73,627		$	77,917
Deferred acquisition costs		1,247			1,487
Intangible assets		155			157
Reinsurance recoverable, net		16,744			16,819
Deferred tax and other assets		753			469
Separate account assets		6,032			6,081
Assets related to discontinued operations		—			2,817
Total assets	$	98,558		$	105,747
Liabilities and equity
Liabilities:
Future policy benefits	$	40,634		$	42,695
Policyholder account balances		19,999			21,503
Liability for policy and contract claims		11,415			11,486
Unearned premiums		728			775
Other liabilities		1,710			1,614
Long-term borrowings		2,922			3,403
Separate account liabilities		6,032			6,081
Liabilities related to discontinued operations		360			2,370
Total liabilities		83,800			89,927
Equity:
Common stock		1			1
Additional paid-in capital		12,011			12,008
Accumulated other comprehensive income (loss)		3,675			4,425
Retained earnings		1,771			1,584
Treasury stock, at cost		(2,700	)		(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		14,758			15,318
Noncontrolling interests		—			502
Total equity		14,758			15,820
Total liabilities and equity	$	98,558		$	105,747
Summary of Income From Discontinued Operations Available to<br><br><br>Genworth Financial Inc.’s Common Stockholders<br><br><br>(Amounts in millions)
---
	Three months ended
---	---	---	---
	March 31,
	2021
Net cash proceeds^16^	$	370
Carrying value of Genworth Australia, excluding noncontrolling interests		383
Excess of carrying value above net cash proceeds		(13	)
Less: net deferred losses and other<br>adjustments^17^		109
Pre-tax loss on sale		(122	)
Tax benefit		119
Total after-tax loss on sale		(3	)
Income from discontinued operations, excluding loss on sale		24
Less: net income from discontinued operations attributable to noncontrolling interests		8
Income from discontinued operations available to Genworth Financial Inc.’s common<br>stockholders	$	13
^16^	Net cash proceeds after adjusting for fees and expenses.
---	---
^17^	Consists primarily of $160 million of cumulative losses on foreign currency translation adjustments,<br>partially offset by cumulative unrealized investment gains of $29 million and deferred tax gains of $22 million.
---	---

Reconciliation of Reported Yield to Core Yield

	Three
	months ended
	March 31,			December 31,
(Assets - amounts in billions)	2021			2020
Reported Total Invested Assets and Cash	$	72.9		$	77.3
Subtract:
Securities lending		0.1			0.1
Unrealized gains (losses)		6.9			10.7
Adjusted End of Period Invested Assets and Cash	$	65.9		$	66.5
Average Invested Assets and Cash Used in Reported and Core Yield Calculation	$	66.2		$	66.7
(Income - amounts in millions)
Reported Net Investment Income	$	801		$	846
Subtract:
Bond calls and commercial mortgage loan prepayments		15			40
Other non-core items^18^		2			6
Core Net Investment Income	$	784		$	800
Reported Yield		4.84	%		5.07	%
Core Yield		4.73	%		4.80	%
^18^	Includes cost basis adjustments on structured securities and various other immaterial items.<br>
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EX-99.2

Exhibit 99.2

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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
Reconciliation of Net Income (Loss) to Adjusted Operating Income<br> (Loss)		9
Consolidated Balance Sheets		10-11
Consolidated Balance Sheets by Segment		12-13
Deferred Acquisition Costs (DAC) Rollforward		14
Quarterly Results by Business
Adjusted Operating Income (Loss) and Sales - U.S. Mortgage Insurance Segment		16-21
Adjusted Operating Income (Loss) - U.S. Life Insurance<br>Segment		23-26
Adjusted Operating Income (Loss) - Runoff Segment		28
Adjusted Operating Loss - Corporate and Other Activities		30
Additional Financial Data
Investments Summary		32
Fixed Maturity Securities Summary		33
General Account U.S. GAAP Net Investment Income Yields		34
Net Investment Gains (Losses), Net - Detail		35
Reconciliations of Non-GAAPMeasures
Reconciliation of Operating Return On Equity (ROE)		37
Reconciliation of Reported Yield to Core Yield		38
Corporate Information
Financial Strength Ratings		40

Note:

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Dear Investor,

On March 3, 2021, the company completed a sale of its entire ownership interest of approximately 52% in Genworth Mortgage Insurance Australia Limited (“Genworth Australia”) through an underwritten agreement. The company sold its approximately 214.3 million shares of Genworth Australia for AUD2.28 per share and received $370 million in net cash proceeds. In the first quarter of 2021, the company recorded an after-tax loss on sale of $3 million.

Genworth Australia, previously the primary business in the Australia Mortgage Insurance segment, is reported as discontinued operations for all periods presented. Accordingly, all prior periods reflected herein have been re-presented on this basis. The following table presents a reconciliation of adjusted operating income (loss) as previously reported to adjusted operating income (loss) re-presented to reflect the Australia mortgage insurance business as discontinued operations for the periods indicated:

	2020
(Amounts in millions)	4Q			3Q			2Q			1Q			Total
ADJUSTED OPERATING INCOME (LOSS) AS PREVIOUSLY REPORTED	$	173		$	132		$	(21	)	$	33		$	317
Remove Australia Mortgage Insurance segment adjusted operating (income) loss reported as<br>discontinued operations		16			(7	)		(1	)		(9	)		(1	)
Adjustment for corporate overhead allocations, net of taxes^(1)^		(5	)		(4	)		(4	)		(4	)		(17	)
Tax adjustments^(2)^		4			4			3			—			11
RE-PRESENTED ADJUSTED OPERATING INCOME(LOSS)	$	188		$	125		$	(23	)	$	20		$	310
^(1)^	Expenses previously reported in the Australia Mortgage Insurance segment and moved to Corporate and Other<br>Activities.
---	---
^(2)^	Tax impacts resulting from the classification of Genworth Australia as discontinued operations.<br>
---	---

Thank you for your continued interest in Genworth Financial, Inc.

Regards,

Investor Relations

InvestorInfo@genworth.com

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Use of Non-GAAP Measures

This financial supplement includes the non-GAAP financial measures entitled “adjusted operating income (loss)” and “adjusted operating income (loss) per share.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.

Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves (see page 35).

In the first quarter of 2021, the company repurchased $146 million principal amount of Genworth Holdings, Inc.’s (Genworth Holdings) senior notes due in September 2021 for a pre-tax loss of $4 million. During 2020, the company repurchased $84 million principal amount of Genworth Holdings’ senior notes with 2021 maturity dates for a pre-tax gain of $3 million and $1 million in the second and first quarters of 2020, respectively. In January 2020, the company paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, the company’s indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income (loss) as they relate to gains (losses) on the early extinguishment of debt.

The company recorded a pre-tax expense of $21 million in the first quarter of 2021 and $1 million in each of the fourth, second and first quarters of 2020 related to restructuring costs as it continues to evaluate and appropriately size its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented.

The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting. This financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 37 and 38 of this financial supplement.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Results of Operations and Selected Operating Performance Measures

The company’s chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The table on page 9 of this financial supplement provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the periods presented and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.

The company taxes its businesses at the U.S. corporate federal income tax rate of 21%. Each segment is then adjusted to reflect the unique tax attributes of that segment, such as permanent differences between U.S. GAAP and tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.

The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.

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

Management regularly monitors and reports insurance in-force and risk in-force for the company’s U.S. mortgage insurance business. Insurance in-force is a measure of the aggregate unpaid principal balance as of the respective reporting date for loans the company insures. Risk in-force is based on the coverage percentage applied to the estimated current outstanding loan balance. The company considers insurance in-force and risk in-force to be measures of its operating performance because they represent measures of the size of its business at a specific date which will generate revenues and profits in a future period, rather than measures of its revenues or profitability during that period.

Management also regularly monitors and reports a loss ratio for the company’s businesses. For the U.S. mortgage insurance business, the loss ratio is the ratio of benefits and other changes in policy reserves to net earned premiums. For the long-term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Financial Highlights

(amounts in millions, except per share data)

Balance Sheet Data	March 31, 2021			December 31,2020			September 30,2020			June 30, 2020			March 31, 2020
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other<br>comprehensive income	$	11,083		$	10,893		$	10,615		$	10,196		$	10,634
Total accumulated other comprehensive income		3,675			4,425			4,141			4,447			3,815
Total Genworth Financial, Inc.’s stockholders’ equity	$	14,758		$	15,318		$	14,756		$	14,643		$	14,449
Book value per share	$	29.14		$	30.28		$	29.19		$	28.96		$	28.61
Book value per share, excluding accumulated other comprehensive income	$	21.88		$	21.54		$	20.99		$	20.17		$	21.05
Common shares outstanding as of the balance sheet date		506.5			505.8			505.6			505.6			505.1
	Twelve months ended
Twelve Month Rolling Average ROE	March 31,2021			December 31,2020			September 30,2020			June 30,<br>2020			March 31,2020
U.S. GAAP Basis ROE		4.0	%		1.7	%		(1.0	)%		(4.8	)%		1.0	%
Operating ROE^(1)^		4.3	%		2.9	%		1.2	%		1.0	%		2.8	%
	Three months ended
Quarterly Average ROE	March 31,2021			December 31,2020			September 30,2020			June 30,<br>2020			March 31,2020
U.S. GAAP Basis ROE		6.8	%		9.9	%		16.1	%		(16.9	)%		(2.5	)%
Operating ROE^(1)^		6.1	%		7.0	%		4.8	%		(0.9	)%		0.7	%
Basic and Diluted Shares	Three months endedMarch 31, 2021
---	---	---
Weighted-average common shares used in basic earnings per share calculations		506.0
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		7.8
Weighted-average common shares used in diluted earnings per share calculations		513.8
^(1)^	See page 37 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE.
---	---

Consolidated QuarterlyResults

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)

	2021		2020
	1Q		4Q			3Q		2Q			1Q			Total
REVENUES:
Premiums	$	968	$	970		$	963	$	957		$	946		$	3,836
Net investment income		801		846			820		779			782			3,227
Net investment gains (losses)		33		147			351		93			(99	)		492
Policy fees and other income		183		191			184		174			180			729
Total revenues		1,985		2,154			2,318		2,003			1,809			8,284
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,218		1,157			1,273		1,447			1,337			5,214
Interest credited		131		132			137		139			141			549
Acquisition and operating expenses, net of deferrals		275		253			235		210			237			935
Amortization of deferred acquisition costs and intangibles		77		174			94		87			108			463
Interest expense		51		55			47		42			51			195
Total benefits and expenses		1,752		1,771			1,786		1,925			1,874			7,356
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		233		383			532		78			(65	)		928
Provision (benefit) for income taxes		59		82			130		23			(5	)		230
INCOME (LOSS) FROM CONTINUING OPERATIONS		174		301			402		55			(60	)		698
Income (loss) from discontinued operations, net of taxes^(1)^		21		(35	)		34		(473	)		(12	)		(486	)
NET INCOME (LOSS)		195		266			436		(418	)		(72	)		212
Less: net income (loss) from continuing operations attributable to noncontrolling<br>interests		—		—			—		—			—			—
Less: net income (loss) from discontinued operations attributable to noncontrolling<br>interests		8		(1	)		18		23			(6	)		34
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	187	$	267		$	418	$	(441	)	$	(66	)	$	178
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common<br>stockholders	$	174	$	301		$	402	$	55		$	(60	)	$	698
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common<br>stockholders		13		(34	)		16		(496	)		(6	)		(520	)
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	187	$	267		$	418	$	(441	)	$	(66	)	$	178
Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common<br>stockholders per share
Basic	$	0.35	$	0.60		$	0.79	$	0.11		$	(0.12	)	$	1.38
Diluted	$	0.34	$	0.59		$	0.79	$	0.11		$	(0.12	)	$	1.36
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per<br>share
Basic	$	0.37	$	0.53		$	0.83	$	(0.87	)	$	(0.13	)	$	0.35
Diluted	$	0.37	$	0.52		$	0.82	$	(0.86	)	$	(0.13	)	$	0.35
Weighted-average common shares outstanding
Basic		506.0		505.6			505.6		505.4			504.3			505.2
Diluted^(2)^		513.8		512.5			511.5		512.5			504.3			511.6
^(1)^	Income (loss) from discontinued operations relates to the company’s former Australia mortgage insurance<br>business that was sold on March 3, 2021 and its former lifestyle protection insurance business that was sold on December 1, 2015. Refer to page 30 for operating results of Genworth Australia reported as discontinued operations. In the<br>first quarter of 2021, due to the sale of Genworth Australia, the company recorded an after-tax favorable adjustment of $11 million associated with a refinement to its tax matters agreement liability.<br>During the first quarter of 2021 and the fourth, third and second quarters of 2020, the company recorded an after-tax loss of $1 million, $30 million, $22 million and $520 million,<br>respectively, related to a secured promissory note with AXA S.A. (AXA) resulting from a settlement agreement reached in 2020 regarding a dispute over payment protection insurance claims sold by the company’s former lifestyle protection<br>insurance business. During the first quarter of 2021 and the third quarter of 2020, based on an updated estimate, the company adjusted a liability associated with underwriting losses on a product sold by a distributor in the company’s former<br>lifestyle protection insurance business which resulted in an after-tax benefit (loss) of $(4) million and $23 million, respectively.
---	---
^(2)^	Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average<br>common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common<br>shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been<br>antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.<br>
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions, except per share amounts)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	187		$	267		$	418		$	(441	)	$	(66	)	$	178
Add: net income (loss) from continuing operations attributable to noncontrolling interests		—			—			—			—			—			—
Add: net income (loss) from discontinued operations attributable to noncontrolling<br>interests		8			(1	)		18			23			(6	)		34
NET INCOME (LOSS)		195			266			436			(418	)		(72	)		212
Less: income (loss) from discontinued operations, net of taxes		21			(35	)		34			(473	)		(12	)		(486	)
INCOME (LOSS) FROM CONTINUING OPERATIONS		174			301			402			55			(60	)		698
Less: net income (loss) from continuing operations attributable to noncontrolling<br>interests		—			—			—			—			—			—
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMONSTOCKHOLDERS		174			301			402			55			(60	)		698
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL,INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net^(1)^		(33	)		(144	)		(350	)		(97	)		88			(503	)
(Gains) losses on early extinguishment of debt		4			—			—			(3	)		12			9
Expenses related to restructuring		21			1			—			1			1			3
Taxes on adjustments		2			30			73			21			(21	)		103
ADJUSTED OPERATING INCOME (LOSS)	$	168		$	188		$	125		$	(23	)	$	20		$	310
ADJUSTED OPERATING INCOME (LOSS):
U.S. Mortgage Insurance segment	$	126		$	95		$	141		$	(3	)	$	148		$	381
U.S. Life Insurance segment:
Long-Term Care Insurance		95			129			59			48			1			237
Life Insurance		(63	)		(20	)		(69	)		(81	)		(77	)		(247	)
Fixed Annuities		30			20			24			28			6			78
Total U.S. Life Insurance segment		62			129			14			(5	)		(70	)		68
Runoff segment		12			13			19			24			(13	)		43
Corporate and Other		(32	)		(49	)		(49	)		(39	)		(45	)		(182	)
ADJUSTED OPERATING INCOME (LOSS)	$	168		$	188		$	125		$	(23	)	$	20		$	310
Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per<br>share
Basic	$	0.37		$	0.53		$	0.83		$	(0.87	)	$	(0.13	)	$	0.35
Diluted	$	0.37		$	0.52		$	0.82		$	(0.86	)	$	(0.13	)	$	0.35
Adjusted operating income (loss) per share
Basic	$	0.33		$	0.37		$	0.25		$	(0.05	)	$	0.04		$	0.61
Diluted	$	0.33		$	0.37		$	0.25		$	(0.05	)	$	0.04		$	0.61
Weighted-average common shares outstanding
Basic		506.0			505.6			505.6			505.4			504.3			505.2
Diluted^(2)^		513.8			512.5			511.5			512.5			504.3			511.6
^(1)^	Net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit<br>reserves (see page 35 for reconciliation).
---	---
^(2)^	Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average<br>common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended March 31, 2020, the company was required to use basic weighted-average common<br>shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been<br>antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million.<br>
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Balance Sheets

(amounts in millions)

	March 31,2021			December 31,2020			September 30,2020			June 30,2020			March 31,2020
ASSETS
Investments:
Fixed maturity securities<br>available-for-sale, at fair value^(1)^	$	60,231		$	63,495		$	62,372		$	61,579		$	57,396
Equity securities, at fair value		238			386			575			154			146
Commercial mortgage loans^(2)^		6,787			6,774			6,911			6,945			6,944
Less: Allowance for credit losses		(32	)		(31	)		(31	)		(28	)		(29	)
Commercial mortgage loans, net		6,755			6,743			6,880			6,917			6,915
Policy loans		1,976			1,978			2,153			2,182			2,052
Other invested assets		1,759			2,099			2,171			2,362			2,338
Total investments		70,959			74,701			74,151			73,194			68,847
Cash, cash equivalents and restricted cash		1,964			2,561			2,740			2,523			2,406
Accrued investment income		704			655			635			587			693
Deferred acquisition costs		1,247			1,487			1,585			1,682			1,866
Intangible assets		155			157			165			177			214
Reinsurance recoverable		16,788			16,864			16,832			16,942			17,118
Less: Allowance for credit losses		(44	)		(45	)		(44	)		(44	)		(42	)
Reinsurance recoverable, net		16,744			16,819			16,788			16,898			17,076
Other assets		439			404			419			428			418
Deferred tax asset		314			65			201			235			271
Separate account assets		6,032			6,081			5,700			5,536			4,967
Assets related to discontinued<br>operations^(3)^		—			2,817			2,541			2,377			2,086
Total assets	$	98,558		$	105,747		$	104,925		$	103,637		$	98,844
^(1)^	Amortized cost of $53,470 million, $53,417 million, $53,241 million, $52,902 million and<br>$52,502 million as of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively, and allowance for credit losses of $3 million, $4 million, $5 million,<br>$7 million and $— as of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020,<br>respectively.
---	---
^(2)^	Net of unamortized balance of loan origination fees and costs of $4 million as of March 31, 2021,<br>December 31, 2020, September 30, 2020, June 30, 2020 and March 31,<br>2020. ^^^^^^^^^^
---	---
^(3)^	Prior to the sale on March 3, 2021, the assets of Genworth Australia were segregated in the consolidated<br>balance sheets. The major asset categories of Genworth Australia reported as discontinued operations were as follows:<br> ^^^^^^^^^^
---	---
	March 31,2021		December 31,2020		September 30,2020		June 30,2020		March 31,2020
---	---	---	---	---	---	---	---	---	---	---
ASSETS
Investments:
Fixed maturity securities<br>available-for-sale, at fair value	$	—	$	2,295	$	2,044	$	1,965	$	1,655
Equity securities, at fair value		—		90		54		52		42
Other invested assets		—		154		231		111		127
Total investments		—		2,539		2,329		2,128		1,824
Cash, cash equivalents and restricted cash		—		95		40		74		77
Accrued investment income		—		16		15		14		14
Deferred acquisition costs		—		42		38		36		32
Intangible assets and goodwill		—		43		44		46		49
Reinsurance recoverable		—		—		—		2		4
Less: Allowance for credit losses		—		—		—		—		—
Reinsurance recoverable, net		—		—		—		2		4
Other assets		—		40		26		26		38
Deferred tax asset		—		42		49		51		48
Assets related to discontinued operations	$	—	$	2,817	$	2,541	$	2,377	$	2,086

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Balance Sheets

(amounts in millions)

	March 31,2021			December 31,2020			September 30,2020			June 30,2020			March 31,2020
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	40,634		$	42,695		$	41,995		$	41,463		$	39,339
Policyholder account balances		19,999			21,503			22,731			22,921			22,313
Liability for policy and contract claims		11,415			11,486			11,135			11,054			10,948
Unearned premiums		728			775			794			810			846
Other liabilities		1,710			1,614			1,822			1,941			1,543
Long-term borrowings		2,922			3,403			3,401			2,679			2,729
Separate account liabilities		6,032			6,081			5,700			5,536			4,967
Liabilities related to discontinued<br>operations^(1)^		360			2,370			2,115			2,145			1,325
Total liabilities		83,800			89,927			89,693			88,549			84,010
Equity:
Common stock		1			1			1			1			1
Additional paid-in capital		12,011			12,008			11,997			11,996			11,993
Accumulated other comprehensive income (loss)		3,675			4,425			4,141			4,447			3,815
Retained earnings		1,771			1,584			1,317			899			1,340
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)
Total Genworth Financial, Inc.’s stockholders’ equity		14,758			15,318			14,756			14,643			14,449
Noncontrolling interests		—			502			476			445			385
Total equity		14,758			15,820			15,232			15,088			14,834
Total liabilities and equity	$	98,558		$	105,747		$	104,925		$	103,637		$	98,844
^(1)^	Liabilities related to discontinued operations relates to a liability recorded in connection with a settlement<br>agreement reached with AXA involving the sale of the company’s former lifestyle protection insurance business. Liabilities related to discontinued operations also includes an unrelated liability associated with underwriting losses on a product<br>sold by a distributor in the company’s former lifestyle protection insurance business. In addition, prior to the sale on March 3, 2021, the liabilities of Genworth Australia were segregated in the consolidated balance sheets. The major<br>liability categories of Genworth Australia reported as discontinued operations were as follows:
---	---
	March 31,2021		December 31,2020		September 30,2020		June 30,2020		March 31,2020
---	---	---	---	---	---	---	---	---	---	---
LIABILITIES
Liability for policy and contract claims	$	—	$	331	$	238	$	226	$	184
Unearned premiums		—		1,193		1,052		994		876
Other liabilities		—		104		91		92		102
Long-term borrowings		—		145		169		138		122
Liabilities related to discontinued operations	$	—	$	1,773	$	1,550	$	1,450	$	1,284

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Balance Sheet by Segment

(amounts in millions)

	March 31, 2021
	U.S.MortgageInsurance		U.S. LifeInsurance			Runoff		CorporateandOther^(1)^			Total
ASSETS
Cash and investments	$	5,572	$	63,435		$	2,640	$	1,980		$	73,627
Deferred acquisition costs and intangible assets		42		1,226			123		11			1,402
Reinsurance recoverable, net		—		16,064			680		—			16,744
Deferred tax and other assets		69		(373	)		46		1,011			753
Separate account assets		—		—			6,032		—			6,032
Total assets	$	5,683	$	80,352		$	9,521	$	3,002		$	98,558
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	40,632		$	2	$	—		$	40,634
Policyholder account balances		—		16,969			3,030		—			19,999
Liability for policy and contract claims		603		10,785			17		10			11,415
Unearned premiums		281		444			3		—			728
Other liabilities		105		824			49		732			1,710
Borrowings		739		—			—		2,183			2,922
Separate account liabilities		—		—			6,032		—			6,032
Liabilities related to discontinued operations		—		—			—		360			360
Total liabilities		1,728		69,654			9,133		3,285			83,800
Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,816		7,660			381		(774	)		11,083
Allocated accumulated other comprehensive income (loss)		139		3,038			7		491			3,675
Total Genworth Financial, Inc.’s stockholders’ equity		3,955		10,698			388		(283	)		14,758
Noncontrolling interests		—		—			—		—			—
Total equity		3,955		10,698			388		(283	)		14,758
Total liabilities and equity	$	5,683	$	80,352		$	9,521	$	3,002		$	98,558
^(1)^	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.<br>
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Consolidated Balance Sheet by Segment

(amounts in millions)

	December 31, 2020
	U.S.MortgageInsurance		U.S. LifeInsurance			Runoff		CorporateandOther^(1)^			Total
ASSETS
Cash and investments	$	5,528	$	67,149		$	2,786	$	2,454		$	77,917
Deferred acquisition costs and intangible assets		44		1,448			142		10			1,644
Reinsurance recoverable, net		—		16,122			697		—			16,819
Deferred tax and other assets		55		(48	)		29		433			469
Separate account assets		—		—			6,081		—			6,081
Assets related to discontinued operations		—		—			—		2,817			2,817
Total assets	$	5,627	$	84,671		$	9,735	$	5,714		$	105,747
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	42,693		$	2	$	—		$	42,695
Policyholder account balances		—		18,385			3,118		—			21,503
Liability for policy and contract claims		555		10,908			12		11			11,486
Unearned premiums		307		465			3		—			775
Other liabilities		121		715			42		736			1,614
Borrowings		738		—			—		2,665			3,403
Separate account liabilities		—		—			6,081		—			6,081
Liabilities related to discontinued operations		—		—			—		2,370			2,370
Total liabilities		1,721		73,166			9,258		5,782			89,927
Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		3,696		7,352			437		(592	)		10,893
Allocated accumulated other comprehensive income (loss)		210		4,153			40		22			4,425
Total Genworth Financial, Inc.’s stockholders’ equity		3,906		11,505			477		(570	)		15,318
Noncontrolling interests		—		—			—		502			502
Total equity		3,906		11,505			477		(68	)		15,820
Total liabilities and equity	$	5,627	$	84,671		$	9,735	$	5,714		$	105,747
^(1)^	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.<br>
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Deferred Acquisition Costs Rollforward

(amounts in millions)

	U.S.MortgageInsurance			U.S. LifeInsurance			Runoff			Total
Unamortized balance as of December 31, 2020	$	29		$	2,629		$	151		$	2,809
Costs deferred		2			—			—			2
Amortization, net of interest accretion		(2	)		(62	)		(4	)		(68	)
Unamortized balance as of March 31, 2021		29			2,567			147			2,743
Effect of accumulated net unrealized investment (gains) losses		—			(1,469	)		(27	)		(1,496	)
Balance as of March 31, 2021	$	29		$	1,098		$	120		$	1,247

U.S. MortgageInsurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q		Total
REVENUES:
Premiums	$	252		$	251		$	251		$	243		$	226	$	971
Net investment income		35			35			34			31			33		133
Net investment gains (losses)		(1	)		(1	)		(2	)		(1	)		—		(4	)
Policy fees and other income		2			2			1			1			2		6
Total revenues		288			287			284			274			261		1,106
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		55			89			45			228			19		381
Acquisition and operating expenses, net of deferrals		57			55			54			47			50		206
Amortization of deferred acquisition costs and intangibles		4			10			3			4			4		21
Interest expense		13			12			6			—			—		18
Total benefits and expenses		129			166			108			279			73		626
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		159			121			176			(5	)		188		480
Provision (benefit) for income taxes		34			26			37			(1	)		40		102
INCOME (LOSS) FROM CONTINUING OPERATIONS		125			95			139			(4	)		148		378
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		1			1			2			1			—		4
Taxes on adjustments		—			(1	)		—			—			—		(1	)
ADJUSTED OPERATING INCOME (LOSS)	$	126		$	95		$	141		$	(3	)	$	148	$	381
SALES:
Primary New Insurance Written (NIW)	$	24,900		$	27,000		$	26,600		$	28,400		$	17,900	$	99,900

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions)

	2021					2020
	1Q					4Q					3Q					2Q					1Q
	PrimaryNIW		% ofPrimaryNIW			PrimaryNIW		% ofPrimaryNIW			PrimaryNIW		% ofPrimaryNIW			PrimaryNIW		% ofPrimaryNIW			PrimaryNIW		% ofPrimaryNIW
Product
Monthly	$	23,400		94	%	$	24,700		92	%	$	23,400		88	%	$	25,800		91	%	$	16,200		91	%
Single		1,400		6			2,200		8			3,100		12			2,500		9			1,500		8
Other^(1)^		100		—			100		—			100		—			100		—			200		1
Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%
Origination
Purchase	$	15,500		62	%	$	17,800		66	%	$	20,000		75	%	$	17,400		61	%	$	12,000		67	%
Refinance		9,400		38			9,200		34			6,600		25			11,000		39			5,900		33
Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%
FICO Scores
Over 760	$	10,500		42	%	$	10,500		39	%	$	11,300		43	%	$	12,300		43	%	$	7,500		42	%
740-759		3,800		15			4,300		16			4,100		15			4,800		17			3,200		18
720-739		3,400		14			4,000		15			3,500		13			4,200		15			2,600		14
700-719		3,000		12			3,600		13			3,100		12			3,300		11			2,200		12
680-699		2,500		10			2,700		10			2,400		9			2,200		8			1,500		8
660-679^(2)^		1,000		4			1,100		4			1,300		5			900		3			500		3
640-659		500		2			600		2			600		2			500		2			300		2
620-639		200		1			200		1			300		1			200		1			100		1
<620		—		—			—		—			—		—			—		—			—		—
Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%
Loan-To-ValueRatio
95.01% and above	$	2,200		9	%	$	2,900		11	%	$	3,700		14	%	$	3,200		11	%	$	1,800		10	%
90.01% to 95.00%		9,500		38			11,100		41			11,700		44			12,300		43			7,700		43
85.01% to 90.00%		8,400		34			8,100		30			7,100		27			8,100		29			5,500		31
85.00% and below		4,800		19			4,900		18			4,100		15			4,800		17			2,900		16
Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%
Debt-To-IncomeRatio
45.01% and above	$	2,600		10	%	$	3,100		11	%	$	3,100		12	%	$	4,000		14	%	$	3,500		20	%
38.01% to 45.00%		8,700		35			10,200		38			9,900		37			9,600		34			6,000		33
38.00% and below		13,600		55			13,700		51			13,600		51			14,800		52			8,400		47
Total Primary	$	24,900		100	%	$	27,000		100	%	$	26,600		100	%	$	28,400		100	%	$	17,900		100	%
^(1)^	Includes loans with annual and split payment types.
---	---
^(2)^	Loans with unknown FICO scores are included in the 660-679 category.<br>
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	226		$	229		$	240		$	217		$	208		$	894
Primary Insurance In-Force^(1)^	$	210,200		$	207,900		$	203,000		$	197,000		$	188,000
Risk In-Force
Primary^(2)^	$	52,866		$	52,475		$	51,393		$	49,868		$	47,740
Pool		134			146			156			169			179
Total Risk In-Force	$	53,000		$	52,621		$	51,549		$	50,037		$	47,919
Expense Ratio (Net EarnedPremiums)^(3)^		24	%		26	%		23	%		21	%		24	%		23	%
Primary Persistency		56	%		57	%		59	%		59	%		74	%		59	%
Combined Risk To CapitalRatio^(4)^		11.7:1			12.1:1			12.1:1			12.0:1			12.2:1
GMICO Risk To CapitalRatio^(4),(5)^		11.9:1			12.3:1			12.3:1			12.2:1			12.4:1
PMIERs Available Assets^(6)^	$	4,769		$	4,588		$	4,451		$	4,218		$	3,974
PMIERs Net RequiredAssets^(6)^	$	3,005		$	3,359		$	3,377		$	2,943		$	2,803
Available Assets Above PMIERsRequirements^(6)^	$	1,764		$	1,229		$	1,074		$	1,275		$	1,171
PMIERs Sufficiency Ratio^(6)^		159	%		137	%		132	%		143	%		142	%
Average Primary Loan Size (in thousands)	$	228		$	225		$	222		$	220		$	217

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

^(1)^	Primary insurance in-force represents aggregate unpaid principal<br>balance for loans the company insures. Original loan balances are primarily used to determine premiums.
^(2)^	Primary risk in-force represents risk on current loan balances as<br>provided by servicers, lenders and investors and conforms to the presentation under the Private Mortgage Insurer Eligibility Requirements (PMIERs).
---	---
^(3)^	The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses<br>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<br>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<br>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.
---	---
^(5)^	Genworth Mortgage Insurance Corporation (GMICO), the company’s principal U.S. mortgage insurance<br>subsidiary.
---	---
^(6)^	The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within<br>the published PMIERs. The current period PMIERs sufficiency is an estimate due to the timing of the PMIERs filing for the U.S. mortgage insurance business and does not take into consideration the impact of restrictions recently imposed by the<br>government-sponsored enterprises (GSEs). The GSEs have imposed certain capital restrictions on the U.S. mortgage insurance business which remain in effect until certain conditions are met. These restrictions currently require GMICO to maintain 115%<br>of published PMIERs minimum required assets among other restrictions.
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

LossMetrics—U.S. Mortgage Insurance Segment

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
Average Paid Claim (in thousands)	$	54.7		$	47.2		$	55.6		$	47.1		$	45.0
Average Reserve Per Primary Delinquency (in thousands)^(1)^	$	13.6		$	11.5		$	8.8		$	7.1		$	13.1
Reserves:
Primary direct case	$	564		$	517		$	436		$	379		$	202
All other^(2)^		39			38			38			60			28
Total Reserves	$	603		$	555		$	474		$	439		$	230
Beginning Reserves	$	555		$	474		$	439		$	230		$	233		$	233
Paid claims		(7	)		(8	)		(10	)		(19	)		(22	)		(59	)
Increase in reserves		55			89			45			228			19			381
Ending Reserves	$	603		$	555		$	474		$	439		$	230		$	555
Loss Ratio^(3)^		22	%		35	%		18	%		94	%		8	%		39	%

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)^	Primary direct case reserves divided by primary delinquency count. <br>
^(2)^	Other includes loss adjustment expenses, pool, incurred but not reported and reinsurance<br>reserves.
---	---
^(3)^	The ratio of benefits and other changes in policy reserves to net earned premiums. <br>
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
Primary Loans
Primary loans in-force		922,186			924,624			913,974			896,232			868,111
Primary delinquent loans		41,332			44,904			49,692			53,587			15,417
Primary delinquency rate		4.48	%		4.86	%		5.44	%		5.98	%		1.78	%
Beginning Number of Primary Delinquencies		44,904			49,692			53,587			15,417			16,392			16,392
New delinquencies		10,053			11,923			16,664			48,373			8,114			85,074
Delinquency cures		(13,478	)		(16,548	)		(20,404	)		(9,795	)		(8,649	)		(55,396	)
Paid claims		(134	)		(152	)		(152	)		(404	)		(440	)		(1,148	)
Rescissions and claim denials		(13	)		(11	)		(3	)		(4	)		—			(18	)
Ending Number of Primary Delinquencies		41,332			44,904			49,692			53,587			15,417			44,904
Composition of Cures
Reported delinquent and cured-intraquarter		1,549			1,433			1,939			3,992			2,236
Number of missed payments delinquent prior to cure:
3 payments or less		4,812			5,567			13,022			4,522			4,850
4 - 11 payments		6,849			9,347			5,239			1,122			1,389
12 payments or more		268			201			204			159			174
Total		13,478			16,548			20,404			9,795			8,649
Primary Delinquencies by Missed Payment Status
3 payments or less		8,296			10,484			13,904			43,158			7,650
4 - 11 payments		21,011			30,324			32,366			7,448			4,909
12 payments or more		12,025			4,096			3,422			2,981			2,858
Primary Delinquencies		41,332			44,904			49,692			53,587			15,417
	March 31, 2021
Primary Direct Case Reserves^(1)^ and Percentage<br><br><br>Reserved by Payment Status	Direct CaseReserves			RiskIn-Force			Reserves as % ofRisk In-Force
3 payments or less in default	$	40		$	436			9	%
4 - 11 payments in default		227			1,232			18	%
12 payments or more in default		297			724			41	%
Total	$	564		$	2,392			24	%
	December 31, 2020
Primary Direct Case Reserves^(1)^ and Percentage<br><br><br>Reserved by Payment Status	Direct CaseReserves			RiskIn-Force			Reserves as % ofRisk In-Force
3 payments or less in default	$	43		$	549			8	%
4 - 11 payments in default		331			1,853			18	%
12 payments or more in default		143			204			70	%
Total	$	517		$	2,606			20	%
^(1)^	Primary direct case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance<br>reserves.
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)

	March 31, 2021
Policy Year	Average Rate^(1)^			% of Direct CaseReserves^(2)^			Primary InsuranceIn-Force		% of Total			Primary RiskIn-Force		% of Total			DelinquencyRate
2004 and prior		6.15	%		3	%	$	663		—	%	$	189		—	%		16.74	%
2005 to 2008		5.53	%		26			9,837		5			2,516		5			13.27	%
2009 to 2013		4.22	%		2			2,394		1			651		1			6.29	%
2014		4.47	%		3			3,176		1			859		2			6.21	%
2015		4.16	%		5			6,729		3			1,795		3			5.69	%
2016		3.88	%		9			13,214		6			3,503		7			5.32	%
2017		4.25	%		11			13,817		7			3,556		7			6.58	%
2018		4.77	%		13			14,618		7			3,671		7			7.86	%
2019		4.21	%		19			33,429		16			8,361		16			5.73	%
2020		3.27	%		9			87,599		42			21,787		41			1.36	%
2021		2.89	%		—			24,711		12			5,978		11			0.03	%
Total		3.75	%		100	%	$	210,187		100	%	$	52,866		100	%		4.48	%
	March 31, 2021						December 31, 2020					March 31, 2020
	Primary RiskIn-Force			Percent ofPrimary RiskIn-Force			Primary RiskIn-Force		Percent ofPrimary RiskIn-Force			Primary RiskIn-Force		Percent ofPrimary RiskIn-Force
Loan-to-value<br>ratio
95.01% and above	$	9,151			17	%	$	9,279		18	%	$	8,482		18	%
90.01% to 95.00%		26,637			51			26,774		51			24,703		52
80.01% to 90.00%		17,060			32			16,401		31			14,532		30
80.00% and below		18			—			21		—			23		—
Total	$	52,866			100	%	$	52,475		100	%	$	47,740		100	%
	March 31, 2021						December 31, 2020					March 31, 2020
	Primary RiskIn-Force			Percent ofPrimary RiskIn-Force			Primary RiskIn-Force		Percent ofPrimary RiskIn-Force			Primary RiskIn-Force		Percent ofPrimary RiskIn-Force
Credit Quality
Over 760	$	19,829			37	%	$	19,691		37	%	$	18,216		38	%
740-759		8,442			16			8,497		16			7,986		17
720-739		7,715			15			7,673		15			6,970		15
700-719		6,678			13			6,579		12			5,688		12
680-699		5,231			10			5,100		10			4,417		9
660-679^(3)^		2,484			5			2,442		5			2,110		4
640-659		1,485			3			1,472		3			1,322		3
620-639		734			1			737		1			701		1
<620		268			—			284		1			330		1
Total	$	52,866			100	%	$	52,475		100	%	$	47,740		100	%
^(1)^	Average annual mortgage interest rate weighted by insurance<br>in-force.
---	---
^(2)^	Direct primary case reserves exclude loss adjustment expenses, incurred but not reported and<br>reinsurance reserves.
---	---
^(3)^	Loans with unknown FICO scores are included in the<br>660-679 category.
---	---

U.S. Life InsuranceSegment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

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

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	714		$	717		$	711		$	712		$	718		$	2,858
Net investment income		716			765			726			692			695			2,878
Net investment gains (losses)		42			121			348			118			(70	)		517
Policy fees and other income		148			157			152			142			144			595
Total revenues		1,620			1,760			1,937			1,664			1,487			6,848
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,155			1,050			1,221			1,213			1,297			4,781
Interest credited		90			91			95			97			100			383
Acquisition and operating expenses, net of deferrals		192			164			158			147			151			620
Amortization of deferred acquisition costs and intangibles		68			161			87			83			87			418
Interest expense		—			—			—			—			5			5
Total benefits and expenses		1,505			1,466			1,561			1,540			1,640			6,207
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		115			294			376			124			(153	)		641
Provision (benefit) for income taxes		32			70			87			33			(27	)		163
INCOME (LOSS) FROM CONTINUING OPERATIONS		83			224			289			91			(126	)		478
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses,<br>net^(1)^		(41	)		(123	)		(348	)		(121	)		67			(525	)
Losses on early extinguishment of debt		—			—			—			—			4			4
Expenses related to restructuring		14			1			—			—			—			1
Taxes on adjustments		6			27			73			25			(15	)		110
ADJUSTED OPERATING INCOME (LOSS)	$	62		$	129		$	14		$	(5	)	$	(70	)	$	68
^(1)^ Net investment (gains) losses were adjusted for<br>DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	(42	)	$	(121	)	$	(348	)	$	(118	)	$	70		$	(517	)
Adjustment for DAC and other intangible amortization and certain benefit reserves		1			(2	)		—			(3	)		(3	)		(8	)
Net investment (gains) losses, net	$	(41	)	$	(123	)	$	(348	)	$	(121	)	$	67		$	(525	)

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Adjusted Operating Income—U.S. Life Insurance Segment—Long-Term Care Insurance

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	646		$	668		$	661		$	649		$	642		$	2,620
Net investment income		465			499			456			422			419			1,796
Net investment gains (losses)		27			118			347			129			(55	)		539
Policy fees and other income		2			3			2			—			—			5
Total revenues		1,140			1,288			1,466			1,200			1,006			4,960
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		829			863			901			876			928			3,568
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		141			114			108			103			101			426
Amortization of deferred acquisition costs and intangibles		24			21			25			21			24			91
Interest expense		—			—			—			—			—			—
Total benefits and expenses		994			998			1,034			1,000			1,053			4,085
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		146			290			432			200			(47	)		875
Provision (benefit) for income taxes		38			69			99			49			(4	)		213
INCOME (LOSS) FROM CONTINUING OPERATIONS		108			221			333			151			(43	)		662
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(27	)		(118	)		(347	)		(129	)		55			(539	)
Expenses related to restructuring		10			1			—			—			—			1
Taxes on adjustments		4			25			73			26			(11	)		113
ADJUSTED OPERATING INCOME	$	95		$	129		$	59		$	48		$	1		$	237
RATIOS:
Loss Ratio^(1)^		62	%		65	%		71	%		69	%		78	%		71	%
Gross Benefits Ratio^(2)^		128	%		129	%		136	%		135	%		145	%		136	%
^(1)^	The loss ratio was calculated by dividing benefits and other changes in policy reserves less tabular interest<br>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<br>premiums.
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Adjusted Operating Loss—U.S. Life Insurance Segment—Life Insurance

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	68		$	49		$	50		$	63		$	76		$	238
Net investment income		125			131			131			127			130			519
Net investment gains (losses)		12			10			4			5			1			20
Policy fees and other income		143			151			148			140			141			580
Total revenues		348			341			333			335			348			1,357
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		282			131			269			289			302			991
Interest credited		56			55			57			57			59			228
Acquisition and operating expenses, net of deferrals		40			38			39			34			39			150
Amortization of deferred acquisition costs and intangibles		41			133			52			53			44			282
Interest expense		—			—			—			—			5			5
Total benefits and expenses		419			357			417			433			449			1,656
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(71	)		(16	)		(84	)		(98	)		(101	)		(299	)
Benefit for income taxes		(15	)		(3	)		(18	)		(21	)		(22	)		(64	)
LOSS FROM CONTINUING OPERATIONS		(56	)		(13	)		(66	)		(77	)		(79	)		(235	)
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		(12	)		(10	)		(4	)		(5	)		(1	)		(20	)
Losses on early extinguishment of debt		—			—			—			—			4			4
Expenses related to restructuring		3			—			—			—			—			—
Taxes on adjustments		2			3			1			1			(1	)		4
ADJUSTED OPERATING LOSS	$	(63	)	$	(20	)	$	(69	)	$	(81	)	$	(77	)	$	(247	)

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Adjusted Operating Income—U.S. Life Insurance Segment—Fixed Annuities

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		126			135			139			143			146			563
Net investment gains (losses)		3			(7	)		(3	)		(16	)		(16	)		(42	)
Policy fees and other income		3			3			2			2			3			10
Total revenues		132			131			138			129			133			531
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		44			56			51			48			67			222
Interest credited		34			36			38			40			41			155
Acquisition and operating expenses, net of deferrals		11			12			11			10			11			44
Amortization of deferred acquisition costs and intangibles		3			7			10			9			19			45
Interest expense		—			—			—			—			—			—
Total benefits and expenses		92			111			110			107			138			466
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		40			20			28			22			(5	)		65
Provision (benefit) for income taxes		9			4			6			5			(1	)		14
INCOME (LOSS) FROM CONTINUING OPERATIONS		31			16			22			17			(4	)		51
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses,<br>net^(1)^		(2	)		5			3			13			13			34
Expenses related to restructuring		1			—			—			—			—			—
Taxes on adjustments		—			(1	)		(1	)		(2	)		(3	)		(7	)
ADJUSTED OPERATING INCOME	$	30		$	20		$	24		$	28		$	6		$	78
^(1)^ Net investment (gains) losses were adjusted for<br>DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	(3	)	$	7		$	3		$	16		$	16		$	42
Adjustment for DAC and other intangible amortization and certain benefit reserves		1			(2	)		—			(3	)		(3	)		(8	)
Net investment (gains) losses, net	$	(2	)	$	5		$	3		$	13		$	13		$	34

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Adjusted Operating Income (Loss)—Runoff Segment

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Net investment income	$	49		$	52		$	55		$	54		$	49		$	210
Net investment gains (losses)		(6	)		30			15			4			(75	)		(26	)
Policy fees and other income		33			32			33			32			33			130
Total revenues		76			114			103			90			7			314
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		8			17			7			4			20			48
Interest credited		41			41			42			42			41			166
Acquisition and operating expenses, net of deferrals		13			12			12			11			13			48
Amortization of deferred acquisition costs and intangibles		5			3			4			(1	)		17			23
Total benefits and expenses		67			73			65			56			91			285
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		9			41			38			34			(84	)		29
Provision (benefit) for income taxes		1			8			8			6			(18	)		4
INCOME (LOSS) FROM CONTINUING OPERATIONS		8			33			30			28			(66	)		25
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses,<br>net^(1)^		5			(25	)		(14	)		(5	)		67			23
Taxes on adjustments		(1	)		5			3			1			(14	)		(5	)
ADJUSTED OPERATING INCOME (LOSS)	$	12		$	13		$	19		$	24		$	(13	)	$	43
^(1)^ Net investment (gains)<br>losses were adjusted for DAC and other intangible amortization and certain benefit reserves as reconciled below:
Net investment (gains) losses, gross	$	6		$	(30	)	$	(15	)	$	(4	)	$	75		$	26
Adjustment for DAC and other intangible amortization and certain benefit reserves		(1	)		5			1			(1	)		(8	)		(3	)
Net investment (gains) losses, net	$	5		$	(25	)	$	(14	)	$	(5	)	$	67		$	23

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Adjusted Operating Loss—Corporate and Other^(1),(2)^

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	2		$	2		$	1		$	2		$	2		$	7
Net investment income		1			(6	)		5			2			5			6
Net investment gains (losses)		(2	)		(3	)		(10	)		(28	)		46			5
Policy fees and other income		—			—			(2	)		(1	)		1			(2	)
Total revenues		1			(7	)		(6	)		(25	)		54			16
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			1			—			2			1			4
Acquisition and operating expenses, net of deferrals		13			22			11			5			23			61
Amortization of deferred acquisition costs and intangibles		—			—			—			1			—			1
Interest expense		38			43			41			42			46			172
Total benefits and expenses		51			66			52			50			70			238
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(50	)		(73	)		(58	)		(75	)		(16	)		(222	)
Benefit for income taxes		(8	)		(22	)		(2	)		(15	)		—			(39	)
LOSS FROM CONTINUING OPERATIONS		(42	)		(51	)		(56	)		(60	)		(16	)		(183	)
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS:
Net investment (gains) losses		2			3			10			28			(46	)		(5	)
(Gains) losses on early extinguishment of debt		4			—			—			(3	)		8			5
Expenses related to restructuring		7			—			—			1			1			2
Taxes on adjustments		(3	)		(1	)		(3	)		(5	)		8			(1	)
ADJUSTED OPERATING LOSS	$	(32	)	$	(49	)	$	(49	)	$	(39	)	$	(45	)	$	(182	)
^(1)^	Includes inter-segment eliminations and the results of other businesses that are managed outside the operating<br>segments, including certain international mortgage insurance businesses.
---	---
^(2)^	Income (loss) from discontinued operations is considered part of Corporate and Other activities but is excluded<br>from the above table. Income (loss) from discontinued operations on pages 8 and 9 herein include operating results of Genworth Australia that was sold on March 3, 2021 and amounts related to the company’s former lifestyle protection<br>insurance business that was sold on December 1, 2015. Operating results of Genworth Australia reported as discontinued operations were as follows:
---	---
	2021			2020
---	---	---	---	---	---	---	---	---	---	---	---	---	---
	1Q			4Q		3Q		2Q		1Q		Total
REVENUES:
Premiums	$	51				$	71	$	62			$	274
Net investment income		4					7		7				33
Net investment gains (losses)		(5	)				24		66		)		66
Policy fees and other income		—					—		—				1
Total revenues		50					102		135				374
BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		11					26		39				177
Acquisition and operating expenses, net of deferrals		7					14		13				53
Amortization of deferred acquisition costs and intangibles		6					7		6				29
Goodwill impairment		—					—		5				5
Interest expense		1					2		2				7
Total benefits and expenses		25					49		65				271
INCOME (LOSS) BEFORE INCOME TAXES AND LOSS ON SALE		25			)		53		70		)		103
Provision (benefit) for income taxes		7					20		23		)		40
INCOME (LOSS) BEFORE LOSS ON SALE		18			)		33		47		)		63
Loss on sale, net of taxes		(3	)				—		—				—
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES		15			)		33		47		)		63
Less: net income (loss) from discontinued operations attributable to noncontrolling<br>interests		8			)		18		23		)		34
INCOME (LOSS) FROM DISCONTINUED OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON<br>STOCKHOLDERS	$	7			(4)	$	15	$	24		(6)	$	29

All values are in US Dollars.

Additional FinancialData

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Investments Summary

(amounts in millions)

		March 31, 2021					December 31, 2020					September 30, 2020					June 30, 2020					March 31, 2020
		CarryingAmount		% ofTotal			CarryingAmount		% ofTotal			CarryingAmount		% ofTotal			CarryingAmount		% ofTotal			CarryingAmount		% ofTotal
Composition of Investment Portfolio
Fixed maturity securities:
Investment grade:
Public fixed maturity securities		$	33,376		47	%	$	35,678		46	%	$	34,742		45	%	$	34,868		46	%	$	32,313		45	%
Private fixed maturity securities			13,402		18			13,734		18			13,522		17			13,148		17			12,025		17
Residential mortgage-backed<br>securities^(1)^			1,766		2			1,900		2			2,042		3			2,151		3			2,243		3
Commercial mortgage-backed securities			2,770		4			2,955		4			2,957		4			2,952		4			2,963		4
Other asset-backed securities			2,806		4			3,076		4			3,028		4			2,708		4			2,873		4
State and political subdivisions			3,135		4			3,165		4			3,110		4			2,995		4			2,861		4
Non-investment grade fixed maturity<br>securities			2,976		4			2,987		4			2,971		4			2,757		4			2,118		3
Equity securities:
Common stocks and mutual funds			155		—			296		—			475		1			52		—			49		—
Preferred stocks			83		—			90		—			100		—			102		—			97		—
Commercial mortgage loans, net			6,755		9			6,743		9			6,880		9			6,917		9			6,915		10
Policy loans			1,976		3			1,978		3			2,153		3			2,182		3			2,052		3
Cash, cash equivalents, restricted cash and short-term investments			1,981		3			2,606		3			2,788		3			2,629		3			2,499		4
Securities lending			68		—			67		—			75		—			59		—			58		—
Other invested assets:	Limited partnerships		1,160		2			1,049		1			844		1			764		1			671		1
	Derivatives:
	Interest rate swaps		84		—			468		1			708		1			939		1			1,002		1
	Foreign currency swaps		—		—			1		—			10		—			17		—			21		—
	Equity index options		53		—			63		—			67		—			66		—			62		—
	Other foreign currency contracts		27		—			42		—			17		—			—		—			11		—
	Other		350		—			364		1			402		1			411		1			420		1
Total invested assets and cash		$	72,923		100	%	$	77,262		100	%	$	76,891		100	%	$	75,717		100	%	$	71,253		100	%
Public Fixed Maturity Securities—CreditQuality:
NRSRO^(2)^ Designation
<br> AAA		$	8,308		20	%	$	9,252		21	%	$	9,409		21	%	$	10,292		24	%	$	10,691		26	%
<br> AA			3,500		8			3,699		8			3,661		8			3,613		8			3,478		8
<br> A			10,986		26			11,784		26			11,852		27			11,751		27			11,078		27
<br> BBB			17,581		42			18,327		41			17,275		40			16,583		38			14,644		36
<br> BB			1,579		4			1,634		4			1,607		4			1,496		3			1,130		3
<br> B			69		—			74		—			71		—			73		—			50		—
<br> CCC and lower			6		—			6		—			42		—			24		—			21		—
Total public fixed maturity securities		$	42,029		100	%	$	44,776		100	%	$	43,917		100	%	$	43,832		100	%	$	41,092		100	%
Private Fixed Maturity Securities—CreditQuality:
NRSRO^(2)^ Designation
<br> AAA		$	973		5	%	$	1,103		6	%	$	1,099		6	%	$	1,027		6	%	$	979		6	%
<br> AA			1,882		10			2,020		11			2,010		11			1,957		11			1,825		11
<br> A			5,188		29			5,482		29			5,377		29			5,179		29			4,792		29
<br> BBB			8,837		49			8,841		47			8,718		47			8,420		47			7,791		48
<br> BB			1,117		6			1,042		6			1,054		6			993		6			818		5
<br> B			197		1			219		1			183		1			160		1			98		1
<br> CCC and lower			8		—			12		—			14		—			11		—			1		—
Total private fixed maturity securities		$	18,202		100	%	$	18,719		100	%	$	18,455		100	%	$	17,747		100	%	$	16,304		100	%
^(1)^	The company does not have any material exposure to residential mortgage-backed securities collateralized debt<br>obligations (CDOs).
---	---
^(2)^	Nationally Recognized Statistical Rating Organizations.
---	---

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Fixed Maturity Securities Summary

(amounts in millions)

	March 31, 2021					December 31, 2020					September 30, 2020					June 30, 2020					March 31, 2020
	Fair Value		% ofTotal			Fair Value		% ofTotal			Fair Value		% ofTotal			Fair Value		% ofTotal			Fair Value		% ofTotal
Fixed Maturity Securities—Security Sector:
U.S. government, agencies and government-sponsored enterprises	$	4,273		7	%	$	4,805		8	%	$	4,792		8	%	$	5,602		9	%	$	5,771		10	%
State and political subdivisions		3,135		5			3,165		5			3,110		5			2,995		5			2,861		5
Foreign government		820		1			854		1			747		1			689		1			616		1
U.S. corporate		34,107		57			35,857		56			35,004		56			34,184		55			30,894		54
Foreign corporate		10,485		17			10,811		17			10,595		17			10,201		17			9,104		16
Residential mortgage-backed securities		1,774		3			1,909		3			2,075		3			2,184		4			2,273		4
Commercial mortgage-backed securities		2,794		5			2,974		5			2,976		5			2,970		5			2,981		5
Other asset-backed securities		2,843		5			3,120		5			3,073		5			2,754		4			2,896		5
Total fixed maturity securities	$	60,231		100	%	$	63,495		100	%	$	62,372		100	%	$	61,579		100	%	$	57,396		100	%
Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	10,807		25	%	$	11,303		25	%	$	10,723		24	%	$	10,299		22	%	$	9,248		23	%
Utilities		5,736		13			6,019		13			5,985		13			6,000		14			5,518		14
Energy		3,417		8			3,496		7			3,337		7			3,170		7			2,782		7
Consumer - non-cyclical		6,545		15			6,977		15			6,867		15			6,744		15			6,089		15
Consumer - cyclical		1,922		4			1,944		4			2,043		4			2,004		5			1,797		4
Capital goods		3,275		7			3,431		7			3,485		8			3,469		8			3,040		8
Industrial		2,299		5			2,390		5			2,273		5			2,205		5			2,057		5
Technology and communications		4,376		10			4,589		10			4,258		9			4,150		9			3,905		10
Transportation		1,877		4			2,053		4			2,135		5			2,120		5			2,023		5
Other		1,516		3			1,639		4			1,702		4			1,664		4			1,576		4
Subtotal		41,770		94			43,841		94			42,808		94			41,825		94			38,035		95
Non-Investment Grade:
Finance and insurance		243		1			275		1			288		1			256		1			210		1
Utilities		94		—			97		—			95		—			97		—			76		—
Energy		712		1			767		2			738		2			673		2			389		1
Consumer - non-cyclical		243		1			233		—			219		—			217		—			195		1
Consumer - cyclical		389		1			374		1			347		1			295		1			223		1
Capital goods		152		—			136		—			152		—			130		—			148		—
Industrial		356		1			340		1			340		1			288		1			193		—
Technology and communications		488		1			463		1			451		1			434		1			416		1
Transportation		18		—			17		—			56		—			49		—			29		—
Other		127		—			125		—			105		—			121		—			84		—
Subtotal		2,822		6			2,827		6			2,791		6			2,560		6			1,963		5
Total	$	44,592		100	%	$	46,668		100	%	$	45,599		100	%	$	44,385		100	%	$	39,998		100	%
Fixed Maturity Securities - Contractual Maturity Dates:
Due in one year or less	$	1,291		2	%	$	1,305		2	%	$	1,375		2	%	$	1,406		2	%	$	1,255		2	%
Due after one year through five years		8,926		15			9,185		14			8,998		15			8,809		14			8,022		14
Due after five years through ten years		14,904		24			14,759		23			14,548		23			14,182		23			12,344		22
Due after ten years		27,699		46			30,243		48			29,327		47			29,274		48			27,625		48
Subtotal		52,820		87			55,492		87			54,248		87			53,671		87			49,246		86
Mortgage and asset-backed securities		7,411		13			8,003		13			8,124		13			7,908		13			8,150		14
Total fixed maturity securities	$	60,231		100	%	$	63,495		100	%	$	62,372		100	%	$	61,579		100	%	$	57,396		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

General Account U.S. GAAP Net Investment IncomeYields

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
U.S. GAAP Net Investment Income
Fixed maturity securities - taxable	$	599		$	618		$	625		$	594		$	611		$	2,448
Fixed maturity securities - non-taxable		2			1			2			1			2			6
Equity securities		3			5			3			2			2			12
Commercial mortgage loans		78			94			82			84			85			345
Other invested assets		58			65			57			52			49			223
Limited partnerships		31			38			22			14			(2	)		72
Policy loans		50			50			51			49			49			199
Cash, cash equivalents, restricted cash and short-term investments		—			—			1			4			10			15
Gross investment income before expenses and fees		821			871			843			800			806			3,320
Expenses and fees		(20	)		(25	)		(23	)		(21	)		(24	)		(93	)
Net investment income	$	801		$	846		$	820		$	779		$	782		$	3,227
Annualized Yields
Fixed maturity securities - taxable		4.5	%		4.6	%		4.7	%		4.5	%		4.7	%		4.7	%
Fixed maturity securities - non-taxable		6.3	%		3.1	%		6.2	%		2.6	%		5.2	%		4.3	%
Equity securities		3.8	%		4.2	%		3.3	%		5.3	%		4.8	%		4.2	%
Commercial mortgage loans		4.6	%		5.5	%		4.8	%		4.9	%		4.9	%		5.0	%
Other invested assets^(1)^		65.0	%		67.9	%		56.2	%		50.0	%		48.2	%		56.0	%
Limited partnerships^(2)^		11.2	%		16.1	%		10.9	%		7.8	%		(1.2	)%		9.1	%
Policy loans		10.1	%		9.7	%		9.4	%		9.3	%		9.5	%		9.5	%
Cash, cash equivalents, restricted cash and short-term investments		—	%		—	%		0.1	%		0.6	%		1.4	%		0.5	%
Gross investment income before expenses and fees		5.0	%		5.2	%		5.1	%		4.9	%		4.9	%		5.0	%
Expenses and fees		(0.2	)%		(0.1	)%		(0.2	)%		(0.1	)%		(0.1	)%		(0.1	)%
Net investment income		4.8	%		5.1	%		4.9	%		4.8	%		4.8	%		4.9	%

Yields are based on net investment income as reported under U.S. GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability. See page 38 herein for average invested assets and cash used in the yield calculation.

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

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Net Investment Gains (Losses), Net—Detail

(amounts in millions)

	2021			2020
	1Q			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on<br>available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	4		$	7		$	2		$	2		$	2		$	13
U.S. government, agencies and government-sponsored enterprises		—			—			316			94			—			410
Foreign corporate		1			5			1			(1	)		—			5
Foreign government		—			—			—			1			—			1
Tax exempt		—			1			—			—			—			1
Mortgage-backed securities		(1	)		11			—			4			—			15
Asset-backed securities		—			(1	)		—			(2	)		—			(3	)
Total net realized gains (losses) on available-for-sale securities		4			23			319			98			2			442
Net change in allowance for credit losses on available-for-sale fixed maturity securities		(2	)		—			2			(7	)		—			(5	)
Write-down of<br>available-for-sale fixed maturity securities		(1	)		—			(4	)		—			—			(4	)
Net realized gains (losses) on equity securities sold		(5	)		2			(3	)		—			—			(1	)
Net unrealized gains (losses) on equity securities still held		(8	)		8			3			5			(12	)		4
Limited partnerships		37			84			31			37			(40	)		112
Commercial mortgage loans		(1	)		—			(3	)		1			—			(2	)
Derivative instruments		8			26			9			(36	)		(48	)		(49	)
Other		1			4			(3	)		(5	)		(1	)		(5	)
Net investment gains (losses), gross		33			147			351			93			(99	)		492
Adjustment for DAC and other intangible amortization and certain benefit reserves		—			(3	)		(1	)		4			11			11
Net investment gains (losses), net	$	33		$	144		$	350		$	97		$	(88	)	$	503

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Reconciliation of Operating ROE

(amounts in millions)

Twelve Month Rolling Average ROE	Twelve months ended
U.S. GAAP Basis ROE	March 31,2021			December 31,2020			September 30,2020			June 30,2020			March 31,2020
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve<br>months ended^(1)^	$	431		$	178		$	(106)		$	(506)		$	103
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated<br>other comprehensive income^(2)^	$	10,684		$	10,618		$	10,592		$	10,618		$	10,695
U.S. GAAP Basis ROE ^(1)/(2)^		4.0	%		1.7	%		(1.0)	%		(4.8)	%		1.0	%
Operating ROE
Adjusted operating income for the twelve months<br>ended^(1)^	$	458		$	310		$	125		$	109		$	295
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated<br>other comprehensive income^(2)^	$	10,684		$	10,618		$	10,592		$	10,618		$	10,695
Operating ROE ^(1)/(2)^		4.3	%		2.9	%		1.2	%		1.0	%		2.8	%
Quarterly Average ROE	Three months ended
U.S. GAAP Basis ROE	March 31,2021			December 31,2020			September 30,2020			June 30,2020			March 31,2020
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period<br>ended^(3)^	$	187		$	267		$	418		$	(441)		$	(66)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period,<br>excluding accumulated other comprehensive income^(4)^	$	10,988		$	10,754		$	10,406		$	10,415		$	10,693
Annualized U.S. GAAP Quarterly Basis ROE<br>^(3)/(4)^		6.8	%		9.9	%		16.1	%		(16.9)	%		(2.5)	%
Operating ROE
Adjusted operating income (loss) for the period<br>ended^(3)^	$	168		$	188		$	125		$	(23)		$	20
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period,<br>excluding accumulated other comprehensive income^(4)^	$	10,988		$	10,754		$	10,406		$	10,415		$	10,693
Annualized Operating Quarterly Basis ROE ^(3)/(4)^		6.1	%		7.0	%		4.8	%		(0.9)	%		0.7	%

Non-GAAP Definition for Operating ROE

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

^(1)^	The twelve months ended information is derived by adding the four quarters of net income (loss) available to<br>Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) from page 9 herein.
^(2)^	Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other<br>comprehensive income, is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income, for the most recent five quarters.
---	---
^(3)^	Net income (loss) available to Genworth Financial, Inc.’s common stockholders and adjusted operating income<br>(loss) from page 9 herein.
---	---
^(4)^	Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other<br>comprehensive income, is derived by averaging ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income.
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GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Reconciliation of Reported Yield to Core Yield

		2021			2020
	(Assets - amounts in billions)	****	1Q	****	****	4Q	****	****	3Q	****	****	2Q	****	****	1Q	****	****	Total	****
	Reported - Total Invested Assets and Cash	$	72.9		$	77.3		$	76.9		$	75.7		$	71.3		$	77.3
	Subtract:
	Securities lending		0.1			0.1			0.1			0.1			0.1			0.1
	Unrealized gains (losses)		6.9			10.7			9.9			9.7			6.0			10.7
	Adjusted end of period invested assets and cash	$	65.9		$	66.5		$	66.9		$	65.9		$	65.2		$	66.5
(A)	Average Invested Assets and Cash Used in Reported and Core Yield Calculation	$	66.2		$	66.7		$	66.4		$	65.6		$	65.3		$	66.0
	(Income - amounts in millions)
(B)	Reported - Net Investment Income	$	801		$	846		$	820		$	779		$	782		$	3,227
	Subtract:
	Bond calls and commercial mortgage loan prepayments		15			40			23			8			16			87
	Other non-core items^(1)^		2			6			6			2			7			21
(C)	Core Net Investment Income	$	784		$	800		$	791		$	769		$	759		$	3,119
(B) / (A)	Reported Yield		4.84	%		5.07	%		4.94	%		4.75	%		4.79	%		4.89	%
(C) / (A)	Core Yield		4.73	%		4.80	%		4.76	%		4.69	%		4.65	%		4.73	%

Note: Yields have been annualized.

Non-GAAP Definition for Core Yield

The company references the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not a substitute for investment yield determined in accordance with U.S. GAAP.

^(1)^	Includes cost basis adjustments on structured securities and various other immaterial items.<br>

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2021

Financial Strength Ratings As Of April 28, 2021

Company	Standard & Poor’s FinancialServices LLC (S&P)	Moody’s Investors Service,Inc. (Moody’s)	A.M. Best Company, Inc.(A.M. Best)
Genworth Mortgage Insurance Corporation	BB+ (Marginal)	Baa3 (Adequate)	N/A
Genworth Life Insurance Company	N/A	N/A	C++ (Marginal)
Genworth Life and Annuity Insurance Company	N/A	N/A	B (Fair)
Genworth Life Insurance Company of New York	N/A	N/A	C++ (Marginal)

The ratings included herewith represent those solicited by the company and are not designed to be, and do not serve as, measures of protection or valuation offered to investors. These financial strength ratings should not be relied on with respect to making an investment in the company’s securities.

S&P states that an insurer rated “BB” (Marginal) has marginal financial security characteristics. The “BB” range is the fifth-highest of nine financial strength rating ranges assigned by S&P, which range from “AAA” to “R.” A plus (+) or minus (-) shows relative standing within a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “BB+” rating is the eleventh-highest of S&P’s 21 ratings categories.

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

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

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