Enact segment adjusted operating income of $143M; PMIERs¹ sufficiency ratio of 164%²

Continued progress on long-term care insurance (LTC) multi-year rate action plan, with approximately $23.8B net present value achieved from in-force rate actions (IFAs) since 2012

LTC adjusted operating loss of $(37)M and Life and Annuities adjusted operating loss of $(4)M

U.S. life insurance companies’ statutory pre-tax income³ of $192M² driving RBC⁴ ratio of 295%²

Genworth holding company cash and liquid assets of $233M at quarter-end

Executed $68M in share repurchases in the quarter; $182M in total executed through April 2023 at an average price less than $5.00 per share

Consolidated Metrics

(Amounts in millions, except per share data)

Net income⁵

Earnings per diluted share⁵

Adjusted operating income^5,6

Adjusted operating income per diluted share^5,6

Weighted-average diluted shares

Private Mortgage Insurer Eligibility Requirements.

Company estimate for the first quarter of 2023 due to timing of the preparation of the filing(s).

Net gain from operations before dividends to policyholders, refunds to members and federal income taxes for Genworth Life Insurance Company (GLIC), Genworth Life and Annuity Insurance Company (GLAIC) and Genworth Life Insurance Company of New York (GLICNY), and before realized capital gains or (losses).

Risk-based capital ratio based on company action level for GLIC consolidated.

All references reflect amounts available to Genworth’s common stockholders excluding noncontrolling interests.

This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (GAAP). See the Use of Non-GAAP Measures section of this press release for additional information.

Effective January 1, 2023 the company changed its operating segments to better align with how it currently manages the business. Financial information has been updated for all periods

On January 1, 2023 the company adopted new GAAP accounting guidance that significantly changed the recognition and measurement of long-duration insurance contracts, commonly known as long-duration targeted improvements (LDTI). The accounting change impacted the Long-Term Care Insurance and Life and Annuities segments. There was no impact to the Enact segment, Corporate and Other or statutory accounting. All prior periods have been re-presented to reflect this accounting change

Net income was driven by Enact, which had very strong operating performance resulting from favorable loss performance

Net investment losses, net of taxes, decreased net income by $9 million in the current quarter, compared with net investment gains in the prior year. Changes in fair value of market risk benefits, net of taxes and other adjustments, decreased net income by $11 million in the current quarter compared with an increase of $43 million in the prior year

Adjusted operating income reflects Enact’s very strong operating performance, partially offset by losses in LTC, Life and Annuities, and Corporate and Other

Net investment income was $787 million in the quarter, an increase from $764 million in the prior year due to higher yields and income from limited partnerships

Current quarter reported and core yields⁶ were 4.86 percent and 4.84 percent, an increase of 19 and 23 basis points, respectively, from the prior year

The effective tax rate on income from continuing operations was approximately 29.3 percent in the current quarter, primarily reflecting a higher tax rate of 35 percent on certain forward starting swap gains, consistent with prior quarters

GAAP Operating Metrics
(Dollar amounts in millions)

Adjusted operating income⁷

Primary new insurance written

Loss ratio

Adjusted operating income reflected a pre-tax benefit of $11 million from incurred losses driven by a pre-tax reserve release of $70 million, primarily from favorable cure performance on COVID-19 delinquencies. The prior year results included a $50 million pre-tax reserve release, primarily related to 2020 COVID-19 delinquencies

Net investment income was $46 million pre-tax in the current quarter, up from $35 million pre-tax in the prior year from rising interest rates and higher average invested assets

Primary insurance in-force increased nine percent versus the prior year to $253 billion, driven by new insurance written (NIW) and continued high persistency

Primary NIW was down 30 percent versus the prior year, primarily from lower originations as a result of elevated interest rates

New delinquencies increased 10 percent to 9,599 from 8,724 in the prior year, primarily from the aging of large, new books

Capital Metric

PMIERs Sufficiency Ratio^2,8

Government-sponsored enterprises’ restrictions on Enact were removed on March 1, 2023 after Genworth successfully satisfied associated financial metric conditions

Enact’s estimated PMIERs sufficiency ratio was 164 percent, $2,098 million above requirements, and down one point from year-end 2022

Enact announced an increase in its quarterly dividend to $0.16 per share

Reflects Genworth’s ownership excluding noncontrolling interests of $32 million and $30 million in the first quarters of 2023 and 2022, respectively.

The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs.

GAAP Operating Metrics
(Amounts in millions)

Adjusted operating income (loss)

Premiums

Net investment income

Premiums related to IFAs of $240 million pre-tax, up $30 million versus the prior year

Higher net investment income of $26 million pre-tax versus the prior year, primarily from limited partnerships, bank loans and higher investment yields, partially offset by lower income from U.S. Government Treasury Inflation-Protected Securities

Current quarter results reflected an unfavorable quarterly assumption update related to the implementation timing of certain IFAs

Results also reflected higher new claims and benefit utilization compared to the prior year. Terminations were also elevated versus expectations, although lower than the prior year

GAAP Adjusted Operating Income (Loss)
(Amounts in millions)

Life Insurance

Fixed Annuities

Variable Annuities

Total Life and Annuities

Current quarter results impacted by unfavorable mortality experience, though improved versus the prior year as COVID-19 impacts subsided in 2023

Results in the prior year included a $25 million pre-tax legal settlement accrual

Fixed annuities results reflected higher fixed payout annuity mortality versus the prior year, offset by lower net spreads primarily related to block runoff

Variable annuities reported higher adjusted operating income from favorable impacts of the aging of the block, partially offset by lower fee income driven by lower account value

(Dollar amounts in millions)

Statutory Pre-Tax Income^2,9

Long-Term Care Insurance

Life Insurance

Fixed Annuities

Variable Annuities

GLIC Consolidated RBC Ratio²

Statutory pre-tax income estimated at $192 million for the current quarter, driven by:

LTC, which benefited from premium increases and benefit reductions from IFAs, including the impacts from a legal settlement, although lower than the prior year, but was partially offset by unfavorable new claims growth

Improved mortality in life insurance and prior year included the settlement accrual of $25 million pre-tax

Net favorable impacts from equity market and interest rate movements related to variable annuity products

The U.S life insurance companies estimate quarter-end RBC to be 295 percent, up from 291 percent in the prior quarter primarily from the strong statutory earnings

The current quarter adjusted operating loss of $18 million was higher versus the prior year’s adjusted operating loss of $12 million due to expenses related to the company’s new growth initiatives with its CareScout business and higher interest expense driven by the floating rate, subordinated debt

Genworth’s principal U.S. life insurance companies: GLIC, GLAIC and GLICNY.

(Dollar amounts in millions)

Holding Company Cash and Liquid Assets^10,11

Cash and liquid assets of $233 million remained above the company’s cash target of two-times annual debt service

Cash inflows during the quarter consisted of $48 million from intercompany taxes and $37 million from Enact capital returns, which included a $19 million quarterly dividend and $18 million in share repurchase proceeds

Current quarter cash outflows included $70 million primarily related to employee benefit payments, which are reimbursed by the subsidiary businesses, $68 million in share repurchases and the repurchase of $11 million principal of the company’s 2034 debt obligation

The company repurchased $68 million of its common stock at an average price of $6.08 per share in the first quarter of 2023

Subsequent to the first quarter of 2023, the company repurchased an additional $50 million of its common stock at an average price of $5.48 per share in April 2023

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

Genworth Holdings, Inc. had $233 million and $140 million of cash, cash equivalents and restricted cash as of March 31, 2023 and March 31, 2022, respectively. Genworth Holdings, Inc. also held $75 million in U.S. government securities as of March 31, 2022, which included $1 million of restricted assets.

Telephone: 888-208-1820 or 323-794-2110 (outside the U.S.); conference ID # 9246072; or

Webcast: https://investor.genworth.com/news-events/ir-calendar

Telephone: Click here to obtain a dial-in number and unique PIN for Enact’s live question and answer session; or

Webcast: http://ir.enactmi.com/news-and-events/events

Sarah E. Crews

Amy Rein

the company’s inability to successfully execute its strategic plans;

failure by the company to achieve economic break-even on or stabilize its legacy long-term care insurance in-force block, including as a result of the inability to achieve desired levels of in-force rate actions and/or the timing of its future premium rate increases and associated benefit reductions taking longer to achieve than originally assumed; other regulatory actions negatively impacting the company’s life insurance businesses and/or the inability to establish new long-term care insurance business;

inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results (including as a result of any changes in connection with quarterly, annual or other reviews);

the impact on holding company liquidity caused by any inability to receive dividends or other returns of capital from Enact Holdings, and limited sources of capital and financing;

adverse changes to the structure, or requirements of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or the U.S. mortgage insurance market; an increase in the number of loans insured through federal government mortgage insurance programs, including those offered by the Federal Housing Administration; the inability of Enact Holdings and/or its U.S. mortgage insurance subsidiaries to continue to meet the requirements mandated by PMIERs (or any adverse changes thereto), inability to meet minimum statutory capital requirements of applicable regulators or the mortgage insurer eligibility requirements of Fannie Mae or Freddie Mac;

changes in economic, market and political conditions including as a result of high inflation, supply chain disruptions, labor shortages, displacement related to COVID-19 and elevated interest rates, including actions taken by the U.S. Federal Reserve to increase interest rates to combat inflation and slow economic growth, which could heighten the risk of a future recession; unanticipated financial events such as the recent closures and disruption experienced by the banking sector, which could lead to market-wide liquidity problems and other significant market disruption resulting in losses, defaults or credit rating downgrades of other financial institutions; deterioration in economic conditions, a recession or a decline in home prices, all of which could be driven by many potential factors, including inflation, may adversely affect Enact Holdings’ loss experience and/or business levels; political and economic instability or changes in government policies, and fluctuations in international securities markets;

rating downgrades or potential downgrades in liquidity, financial strength and credit ratings; counterparty credit risks; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of invested assets;

changes in tax rates or tax laws, or changes in accounting and reporting standards (including new accounting guidance the company adopted on January 1, 2023 related to long-duration insurance contracts);

litigation and regulatory investigations or other actions, including commercial and contractual disputes with counterparties;

the company’s inability to achieve anticipated business performance and financial results from CareScout and its senior care growth initiatives through fee-based services, advice, consulting and products;

the inability to retain, attract and motivate qualified employees or senior management;

the occurrence of natural or man-made disasters, including geopolitical tensions and war (including the Russian invasion of Ukraine), a public health emergency, including pandemics, climate change or cybersecurity breaches; and

other factors described in the risk factors contained in Item 1A of the company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 28, 2023.

Revenues:

Premiums

Net investment income

Net investment gains (losses)

Policy fees and other income

Total revenues

Benefits and expenses:

Benefits and other changes in policy reserves

Liability remeasurement (gains) losses

Changes in fair value of market risk benefits and associated hedges

Interest credited

Acquisition and operating expenses, net of deferrals

Amortization of deferred acquisition costs and intangibles

Interest expense

Total benefits and expenses

Income from continuing operations before income taxes

Provision for income taxes

Income from continuing operations

Loss from discontinued operations, net of taxes

Net income

Less: net income from continuing operations attributable to noncontrolling interests

Less: net income from discontinued operations attributable to noncontrolling interests

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

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

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

Loss from discontinued operations available to Genworth

Financial, Inc.’s common stockholders

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

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

Basic

Diluted

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

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted

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

Add: net income from continuing operations attributable to noncontrolling interests

Add: net income from discontinued operations attributable to noncontrolling interests

Net income

Less: loss from discontinued operations, net of taxes

Income from continuing operations

Less: net income from continuing operations attributable to noncontrolling interests

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

Adjustments to income from continuing operations available to Genworth

Financial, Inc.’s common stockholders:

Net investment (gains) losses

Changes in fair value of market risk benefits attributable to changes in interest rates, equity markets and associated hedges¹²

(Gains) losses on early extinguishment of debt

Expenses related to restructuring

Taxes on adjustments

Adjusted operating income

Adjusted operating income (loss):

Enact segment

Long-Term Care Insurance segment

Life and Annuities segment:

Life Insurance

Fixed Annuities

Variable Annuities

Total Life and Annuities segment

Corporate and Other

Adjusted operating income

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

Basic

Diluted

Adjusted operating income per share:

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges were adjusted for changes in reserves, attributed fees and benefit payments of $(3) million and $(13) million for the three months ended March 31, 2023 and 2022, respectively.

(Assets - amounts in billions)

Reported Total Invested Assets and Cash

Subtract:

Unrealized gains (losses)

Adjusted End of Period Invested Assets and Cash

Average Invested Assets and Cash Used in Reported and Core Yield Calculation

(Income - amounts in millions)

Reported Net Investment Income

Subtract:

Bond calls and commercial mortgage loan prepayments

Other non-core items¹³

Core Net Investment Income

Reported Yield

Core Yield

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