GENWORTH FINANCIAL INC false 0001276520 0001276520 2023-11-08 2023-11-08
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
November 8, 2023
Date of Report
(Date of earliest event reported)
GENWORTH FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-32195 |
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80-0873306 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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6620 West Broad Street, Richmond, VA |
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23230 |
(Address of principal executive offices) |
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(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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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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)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol |
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Name of each exchange on which registered |
Class A Common Stock, par value $.001 per share |
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GNW |
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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 November 8, 2023, Genworth Financial, Inc. (the “Company”) issued (1) a press release announcing its financial results for the quarter ended September 30, 2023, 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 September 30, 2023, 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:
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.
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GENWORTH FINANCIAL, INC. |
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Date: November 8, 2023 |
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By: |
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/s/ Cristina E. Ahn |
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Cristina E. Ahn |
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Vice President and Controller |
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(Principal Accounting Officer) |
Exhibit 99.1
Genworth Financial Announces Third Quarter 2023 Results
Net Income of $29 Million and Adjusted Operating Income of $42 Million
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Enact segment adjusted operating income of $134M; PMIERs1
sufficiency ratio of 162%2 |
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LTC adjusted operating loss of $71M; Life and Annuities adjusted operating loss of $3M |
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Continued progress on Long-Term Care Insurance (LTC) multi-year rate action plan, with $83M of gross incremental
premium approved in third quarter and approximately $25B net present value achieved from in-force rate actions (IFAs) since 2012 |
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U.S. life insurance companies statutory pre-tax income3 of $30M2 and RBC4 ratio of 291%2
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Executed $80M in share repurchases in the quarter; $334M in total executed through October 2023 at an average
price of $5.24 per share, approximately 451M shares outstanding |
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Successful completion of consent solicitation for 2034 Senior Notes providing greater financial flexibility
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Genworth holding company cash and liquid assets of $232M at quarter-end
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Richmond, VA (November 8, 2023) Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended
September 30, 2023.
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I am very pleased with Enacts continued strong financial performance, and as expected, we experienced volatility in our LTC results due to the required liability remeasurement, said Tom McInerney,
President & CEO. Genworth continues to execute on its strategy to maximize shareholder value, with capital returns from Enact fueling our share repurchase program, investments in growth, and opportunistic debt
reduction. |
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Consolidated Metrics
(Amounts in millions, except per share data) |
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Q3 2023 |
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Q2 2023 |
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Q3 2022 |
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Net income5 |
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$ |
29 |
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$ |
137 |
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$ |
136 |
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Earnings per diluted share5 |
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$ |
0.06 |
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$ |
0.29 |
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$ |
0.27 |
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Adjusted operating income5,6 |
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$ |
42 |
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$ |
85 |
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$ |
158 |
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Adjusted operating income per diluted
share5,6 |
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$ |
0.09 |
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$ |
0.18 |
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$ |
0.31 |
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Weighted-average diluted shares |
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466.0 |
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478.1 |
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509.3 |
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1 |
Private Mortgage Insurer Eligibility Requirements. |
2 |
Company estimate for the third quarter of 2023 due to timing of the preparation of the filing(s).
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3 |
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). |
4 |
Risk-based capital ratio based on company action level for GLIC consolidated. |
5 |
All references reflect amounts available to Genworths common stockholders excluding noncontrolling
interests. |
6 |
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. |
1
Consolidated GAAP Financial Highlights
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Net income was driven by Enact, which had strong operating performance resulting from strong loss performance and
increased net investment income |
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Net investment losses, net of taxes and other adjustments, decreased net income by $34 million in the
current quarter, compared with $46 million in the prior year. The investment losses in the current quarter were driven primarily from derivatives, mark-to-market on
equity securities and net trading losses |
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Adjusted operating income reflects Enacts strong operating performance, partially offset by losses in LTC,
Corporate and Other and Life and Annuities |
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Net investment income was $801 million in the quarter, down from $808 million in the prior year as
lower income from U.S. Government Treasury Inflation-Protected Securities (TIPS) and lower asset levels were mostly offset by higher investment yields |
Enact
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GAAP Operating Metrics
(Dollar amounts in millions) |
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Q3 2023 |
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Q2 2023 |
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Q3 2022 |
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Adjusted operating income7 |
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$ |
134 |
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$ |
146 |
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$ |
156 |
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Primary new insurance written |
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$ |
14,391 |
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$ |
15,083 |
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$ |
15,069 |
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Loss ratio |
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7 |
% |
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(2 |
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(17 |
)% |
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Adjusted operating income reflected a favorable pre-tax reserve release
of $55 million, primarily from cure performance on delinquencies from 2022 and earlier, including COVID-19 related delinquencies. The prior quarter and prior year included favorable pre-tax reserves releases of $63 million and $80 million, respectively, primarily related to cures on COVID-19 delinquencies |
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Net investment income was $55 million pre-tax in the current
quarter, up from $39 million pre-tax in the prior year from rising interest rates and higher average invested assets |
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Primary insurance in-force increased eight percent versus the prior year
to $262 billion, driven by new insurance written (NIW) and continued elevated persistency |
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Primary NIW was down four percent versus the prior year and five percent versus the prior quarter primarily from
lower originations as a result of elevated interest rates |
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New delinquencies increased 22 percent to 11,107 from 9,121 in the prior year, primarily from the aging of
large, new books |
7 |
Reflects Genworths ownership excluding noncontrolling interests of $31 million, $31 million and
$35 million in the third and second quarters of 2023 and third quarter of 2022, respectively. |
2
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Capital Metric |
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Q3 2023 |
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Q2 2023 |
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Q3 2022 |
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PMIERs Sufficiency Ratio2,8 |
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162 |
% |
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162 |
% |
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174 |
% |
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Enact paid a quarterly dividend of $0.16 per share in the current quarter |
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Estimated PMIERs sufficiency ratio was 162 percent, flat to prior quarter and $2,017 million above
requirements |
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Announced a special cash dividend of $113 million and a quarterly dividend of $26 million, Genworth
share will be $92 million and $21 million, respectively |
Long-Term Care Insurance
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GAAP Operating Metrics
(Amounts in millions) |
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Q3 2023 |
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Q2 2023 |
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Q3 2022 |
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Adjusted operating income (loss) |
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$ |
(71 |
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$ |
(43 |
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$ |
26 |
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Premiums |
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$ |
621 |
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$ |
611 |
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$ |
637 |
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Net investment income |
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$ |
482 |
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$ |
470 |
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$ |
497 |
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Liability remeasurement gains (losses) |
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$ |
(104 |
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$ |
(61 |
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$ |
(3 |
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Cash flow assumption updates |
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6 |
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24 |
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10 |
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Actual to expected experience |
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(110 |
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(85 |
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(13 |
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Premiums related to IFAs of $253 million pre-tax, up
$11 million versus the prior year |
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Net investment income driven primarily by limited partnership income, which was up versus the prior quarter and
down versus the prior year and TIPS income, which was lower than the prior quarter and prior year |
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Current quarter results reflected a liability remeasurement loss of $104 million pre-tax, $(0.17) after-tax per diluted share. The unfavorable actual experience versus best estimate liability assumptions of $110 million
pre-tax was primarily on unprofitable, capped cohorts driven by legal settlement timing impacts, higher claims as the blocks age, and lower terminations |
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Results in the prior year included a $16 million after-tax accrual
related to legal settlements |
Life and Annuities
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GAAP Adjusted Operating Income (Loss)
(Amounts in millions) |
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Q3 2023 |
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Q2 2023 |
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Q3 2022 |
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Life Insurance |
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$ |
(25 |
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$ |
(17 |
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$ |
(28 |
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Fixed Annuities |
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$ |
17 |
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$ |
10 |
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$ |
15 |
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Variable Annuities |
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$ |
5 |
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$ |
9 |
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$ |
7 |
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Total Life and Annuities |
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$ |
(3 |
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$ |
2 |
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$ |
(6 |
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8 |
The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within
PMIERs. |
3
Life Insurance
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Life results improved from prior year with favorable mortality, partially offset by $9 million after-tax impact from a voluntary recapture of previously ceded reinsurance in the current quarter |
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Deferred acquisition costs amortization expense was lower, primarily driven by lower lapses and block runoff
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Annuities
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Fixed annuities results included favorable fixed payout annuity mortality and lower net spreads primarily related
to block runoff |
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Variable annuities reported lower adjusted operating income with unfavorable mortality versus the prior quarter
and lower fee income versus the prior year primarily related to block runoff |
U.S. Life Insurance Companies Statutory Results and
RBC
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(Dollar amounts in millions) |
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Q3 2023 |
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Q2 2023 |
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Q3 2022 |
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Statutory Pre-Tax Income (Loss)2,9 |
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$ |
30 |
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$ |
63 |
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$ |
59 |
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Long-Term Care Insurance |
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21 |
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(71 |
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50 |
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Life Insurance |
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(40 |
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26 |
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(18 |
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Fixed Annuities |
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32 |
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14 |
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28 |
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Variable Annuities |
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17 |
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94 |
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(1 |
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GLIC Consolidated RBC Ratio2 |
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291 |
% |
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293 |
% |
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286 |
% |
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Statutory pre-tax income estimated at $30 million for the current
quarter, driven by: |
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LTC, which continues to benefit from premium increases and benefit reductions from IFAs, including more favorable
impacts from reserve releases related to legal settlements and higher terminations compared to the prior quarter |
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Life insurance results included $45 million of pre-tax unfavorable
impacts from recaptures of previously ceded reinsurance, primarily related to the liquidation of Scottish Re |
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Fixed annuities mortality was favorable, partially offset by lower net spread income |
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Variable annuity reserves impacts from equity market and interest rate movements was less favorable than the
prior quarter |
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The U.S life insurance companies estimate current quarter RBC to be 291 percent, down slightly from the
prior quarter |
Corporate and Other
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The current quarter adjusted operating loss of $18 million was lower versus the prior quarters loss of
$20 million, primarily due to higher tax benefits, and flat to the prior years loss of $18 million |
9 |
Genworths principal U.S. life insurance companies: GLIC, GLAIC and GLICNY. |
4
Holding Company Cash and Liquid Assets
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(Amounts in millions) |
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Q3 2023 |
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Q2 2023 |
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Q3 2022 |
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Holding Company Cash and Liquid Assets10,11 |
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$ |
232 |
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$ |
222 |
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$ |
145 |
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Cash and liquid assets of $232 million remained above the companys cash target of two-times annual debt service |
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Cash inflows during the current quarter consisted of $59 million from intercompany tax payments and
$26 million from Enact capital returns, which included a $21 million quarterly dividend and $5 million in share repurchase proceeds |
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Current quarter cash outflows included $80 million in share repurchases and $11 million related to debt
servicing costs |
Returns to Shareholders
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In the third quarter of 2023, the company repurchased $80 million of its common stock at an average price of
$5.69 per share. Subsequently, in October 2023, the company repurchased an additional $10 million of its common stock at an average price of $5.82 |
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Approximately 451 million shares outstanding as of October 31, 2023 |
About Genworth Financial
Genworth Financial, Inc. (NYSE:
GNW) is a Fortune 500 company focused on empowering families to navigate the aging journey with confidence, now and in the future. Headquartered in Richmond, Virginia, Genworth provides guidance, products, and services that help people understand
their caregiving options and fund their long-term care needs. Genworth is also the parent company of publicly traded Enact Holdings, Inc. (Nasdaq: ACT), a leading U.S. mortgage insurance provider. For more information on Genworth, visit
genworth.com, and for more information on Enact Holdings, Inc. visit enactmi.com.
10 |
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. |
11 |
Genworth Holdings, Inc. held no short-term investments or U.S. government securities as of September 30,
2023, June 30, 2023 and September 30, 2022. |
5
Conference Call Information
Investors are encouraged to read this press release, summary presentation and financial supplement which are now posted on the companys website,
http://investor.genworth.com.
Genworth will conduct a conference call on November 9, 2023 at 9:00 a.m. (ET) to discuss its third quarter
results, which will be accessible via:
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Telephone: 888-208-1820 or 323-794-2110 (outside the U.S.); conference ID # 5935361; or |
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Webcast: https://investor.genworth.com/news-events/ir-calendar
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Allow at least 15 minutes prior to the call time to register for the call. A replay of the webcast will be available on the
companys website for one year.
Contact Information:
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Investors: |
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Brian Johnson
InvestorInfo@genworth.com |
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Media: |
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Amy Rein
Amy.Rein@genworth.com |
6
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 companys President and Chief Executive Officer (Principal Executive Officer), who serves
as 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), changes in fair value of market risk benefits and associated hedges,
gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items. A component of the companys 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
companys discretion and are influenced by market opportunities, as well as asset-liability matching considerations. The company excludes net investment gains (losses), changes in fair value of market risk benefits and associated hedges, gains
(losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in the
companys opinion, they are not indicative of overall operating performance.
While some of these items may be significant components of net income
(loss) in accordance with 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) or net income (loss) per share on a basic and diluted basis determined in
accordance with GAAP. In addition, the companys definition of adjusted operating income (loss) may differ from the definitions used by other companies.
Adjustments to reconcile net income (loss) to adjusted operating income (loss) assume a 21 percent tax rate and are net of the portion attributable to
noncontrolling interests. Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments.
The tables at the end of this press release provide a reconciliation of net income available to Genworth Financial, Inc.s common stockholders to
adjusted operating income for the three months ended September 30, 2023 and 2022, as well as the three months ended June 30, 2023 and reflect adjusted operating income (loss) as determined in accordance with accounting guidance related to
segment reporting.
7
Long-Duration Targeted Improvements
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 LDTI. This accounting guidance impacted the companys LTC, life insurance and annuity products and was applied as of January 1, 2021. While the new guidance has had a significant impact on existing GAAP
financial statements and disclosures, it does not impact the cash flows or underlying economics of the business, business strategy, statutory net income (loss) or RBC of the U.S. life insurance companies, and it does not have an impact on the Enact
segment, Corporate and Other or management of capital. All prior period information herein has been re-presented to reflect the adoption of LDTI.
All financial information in this press release is based on the companys implementation of LDTI and is currently unaudited. It is possible that the
final audited financial results may differ, perhaps materially, from the information included in this press release.
Statutory Accounting Data
The company presents certain supplemental statutory data for GLIC and its consolidating life insurance subsidiaries that has been prepared on the
basis of statutory accounting principles (SAP). GLIC and its consolidating life insurance subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners that are prepared
using SAP, an accounting basis either prescribed or permitted by such authorities. Due to differences in methodology between SAP and GAAP, the values for assets, liabilities and equity, and the recognition of income and expenses, reflected in
financial statements prepared in accordance with GAAP are materially different from those reflected in financial statements prepared under SAP. This supplemental statutory data should not be viewed as an alternative to, or used in lieu of, GAAP.
This supplemental statutory data includes company action level RBC ratios for GLIC and its consolidating life insurance subsidiaries as well as combined
statutory pre-tax earnings from the principal U.S. life insurance companies, GLIC, GLAIC and GLICNY. Statutory pre-tax earnings represent the net gain from operations,
including the impact from in-force rate actions, before dividends to policyholders, refunds to members and federal income taxes and before realized capital gains or (losses). Management uses and provides this
supplemental statutory data because it believes it provides a useful measure of, among other things, statutory pre-tax earnings and the adequacy of capital. Management uses this data to measure against its
policy to manage the U.S. life insurance companies with internally generated capital.
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 companys future business and financial performance. Examples of forward-looking statements include statements the company makes relating to potential
dividends or share repurchases; future return of capital by Enact Holdings, Inc. (Enact Holdings), including share repurchases, and quarterly and special dividends; the cumulative amount of rate action benefits required for the companys
long-term care insurance business to achieve economic break-even status; future financial performance and condition of the companys businesses; liquidity and future strategic investments, including new senior care services and products; future
business and financial performance of CareScout LLC (CareScout); as well as statements the company makes regarding the potential of a recession.
8
Forward-looking statements are based on managements 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, inflation,
business, competitive, market, regulatory and other factors and risks, including but not limited to, the following:
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the companys inability to successfully execute its strategic plans; |
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the companys failure 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 companys life insurance businesses and/or the inability to establish new long-term care insurance business;
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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, including reviews the company expects to complete and carry out in the fourth quarter of 2023);
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the impact on holding company liquidity caused by an inability to receive dividends or any other returns of
capital from Enact Holdings, and limited sources of capital and financing; |
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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, labor shortages,
displacements related to the coronavirus pandemic (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 closures and disruptions 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 companys inability to achieve anticipated business performance and financial results from CareScout and
its senior care growth initiatives through fee-based services, advice, consulting and other products and services; |
|
|
|
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 and the Hamas attack on Israel and ensuing response), a public health emergency, including pandemics, or climate change; |
|
|
|
the inability to effectively manage information technology systems, cyber incidents or other failures,
disruptions or security breaches to the company or its third-party vendors such as the MOVEit cybersecurity incident; and |
|
|
|
other factors described in the risk factors contained in Item 1A of the companys Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 28, 2023. |
9
The company provides additional information regarding these risks and uncertainties in its Annual Report on
Form 10-K. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Accordingly, for the foregoing reasons, the company cautions you against relying on
any forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities
laws.
10
Condensed Consolidated Statements of Income
(Amounts in millions, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months |
|
|
|
Three months ended |
|
|
ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
915 |
|
|
$ |
929 |
|
|
$ |
902 |
|
Net investment income |
|
|
801 |
|
|
|
808 |
|
|
|
785 |
|
Net investment gains (losses) |
|
|
(43 |
) |
|
|
(58 |
) |
|
|
39 |
|
Policy fees and other income |
|
|
158 |
|
|
|
169 |
|
|
|
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,831 |
|
|
|
1,848 |
|
|
|
1,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
1,199 |
|
|
|
1,159 |
|
|
|
1,175 |
|
Liability remeasurement (gains) losses |
|
|
116 |
|
|
|
17 |
|
|
|
70 |
|
Changes in fair value of market risk benefits and associated hedges |
|
|
(24 |
) |
|
|
(27 |
) |
|
|
(19 |
) |
Interest credited |
|
|
127 |
|
|
|
128 |
|
|
|
126 |
|
Acquisition and operating expenses, net of deferrals |
|
|
228 |
|
|
|
245 |
|
|
|
226 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
65 |
|
|
|
80 |
|
|
|
64 |
|
Interest expense |
|
|
30 |
|
|
|
26 |
|
|
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
1,741 |
|
|
|
1,628 |
|
|
|
1,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes |
|
|
90 |
|
|
|
220 |
|
|
|
221 |
|
Provision for income taxes |
|
|
30 |
|
|
|
54 |
|
|
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
60 |
|
|
|
166 |
|
|
|
166 |
|
Income from discontinued operations, net of taxes |
|
|
|
|
|
|
5 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
60 |
|
|
|
171 |
|
|
|
168 |
|
Less: net income from continuing operations attributable to noncontrolling interests |
|
|
31 |
|
|
|
35 |
|
|
|
31 |
|
Less: net income from discontinued operations attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Genworth Financial, Inc.s common stockholders |
|
$ |
29 |
|
|
$ |
136 |
|
|
$ |
137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Genworth Financial, Inc.s common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to Genworth Financial, Inc.s common
stockholders |
|
$ |
29 |
|
|
$ |
131 |
|
|
$ |
135 |
|
Income from discontinued operations available to Genworth Financial, Inc.s common
stockholders |
|
|
|
|
|
|
5 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Genworth Financial, Inc.s common stockholders |
|
$ |
29 |
|
|
$ |
136 |
|
|
$ |
137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to Genworth Financial, Inc.s common stockholders
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Genworth Financial, Inc.s common stockholders per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.27 |
|
|
$ |
0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.27 |
|
|
$ |
0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
460.5 |
|
|
|
503.8 |
|
|
|
473.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
466.0 |
|
|
|
509.3 |
|
|
|
478.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
Reconciliation of Net Income to Adjusted Operating Income
(Amounts in millions, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three |
|
|
Three |
|
|
|
months ended |
|
|
months ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
Net income available to Genworth Financial, Inc.s common stockholders |
|
$ |
29 |
|
|
$ |
136 |
|
|
$ |
137 |
|
Add: net income from continuing operations attributable to noncontrolling interests |
|
|
31 |
|
|
|
35 |
|
|
|
31 |
|
Add: net income from discontinued operations attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
60 |
|
|
|
171 |
|
|
|
168 |
|
Less: income from discontinued operations, net of taxes |
|
|
|
|
|
|
5 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
60 |
|
|
|
166 |
|
|
|
166 |
|
Less: net income from continuing operations attributable to noncontrolling interests |
|
|
31 |
|
|
|
35 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to Genworth Financial, Inc.s common
stockholders |
|
|
29 |
|
|
|
131 |
|
|
|
135 |
|
Adjustments to income from continuing operations available to Genworth Financial, Inc.s
common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net12 |
|
|
43 |
|
|
|
58 |
|
|
|
(41 |
) |
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges13 |
|
|
(26 |
) |
|
|
(32 |
) |
|
|
(23 |
) |
(Gains) losses on early extinguishment of debt |
|
|
|
|
|
|
3 |
|
|
|
|
|
Expenses related to restructuring |
|
|
|
|
|
|
|
|
|
|
1 |
|
Pension plan termination costs |
|
|
|
|
|
|
6 |
|
|
|
|
|
Taxes on adjustments |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
|
$ |
42 |
|
|
$ |
158 |
|
|
$ |
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Enact segment |
|
$ |
134 |
|
|
$ |
156 |
|
|
$ |
146 |
|
Long-Term Care Insurance segment |
|
|
(71 |
) |
|
|
26 |
|
|
|
(43 |
) |
Life and Annuities segment: |
|
|
|
|
|
|
|
|
|
|
|
|
Life Insurance |
|
|
(25 |
) |
|
|
(28 |
) |
|
|
(17 |
) |
Fixed Annuities |
|
|
17 |
|
|
|
15 |
|
|
|
10 |
|
Variable Annuities |
|
|
5 |
|
|
|
7 |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Life and Annuities segment |
|
|
(3 |
) |
|
|
(6 |
) |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
(18 |
) |
|
|
(18 |
) |
|
|
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
|
$ |
42 |
|
|
$ |
158 |
|
|
$ |
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Genworth Financial, Inc.s common stockholders per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.27 |
|
|
$ |
0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.27 |
|
|
$ |
0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.09 |
|
|
$ |
0.31 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.09 |
|
|
$ |
0.31 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
460.5 |
|
|
|
503.8 |
|
|
|
473.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
466.0 |
|
|
|
509.3 |
|
|
|
478.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 |
Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of
$2 million for the three months ended June 30, 2023. |
13 |
Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in
reserves, attributed fees and benefit payments of $(2) million and $(5) million for the three months ended September 30, 2023 and 2022, respectively, and $(4) million for the three months June 30, 2023. |
12
Exhibit 99.2
Page intentionally left blank
i
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Cautionary Note
Regarding Forward-Looking Statements
This financial supplement 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, anticipates, intends, plans, believes, seeks,
estimates, will or words of similar meaning and include, but are not limited to, statements regarding the outlook for future business and financial performance of Genworth Financial, Inc. and its consolidated subsidiaries.
Forward-looking statements are based on managements current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ
materially due to global political, economic, business, competitive, market, regulatory and other factors and risks, as well as risks discussed in the risk factor section of the companys Annual Report on Form
10-K, filed with the United States Securities and Exchange Commission on February 28, 2023. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of
new information, future developments or otherwise.
ii
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
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.
2
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Dear Investor,
On January 1, 2023, the company adopted new U.S. GAAP accounting guidance that significantly changed the recognition and measurement of long-duration
insurance contracts, commonly known as long-duration targeted improvements (LDTI). This accounting guidance impacted the companys long-term care insurance, life insurance and annuity products and was applied as of January 1, 2021, also
known as the transition date. While the new guidance has had a significant impact on U.S. GAAP financial statements and disclosures, it does not impact the cash flows or underlying economics of the business, business strategy, statutory net income
(loss), risk-based capital of the companys U.S. life insurance companies, management of capital or the companys Enact segment and Corporate and Other.
All prior period information has been re-presented to reflect the adoption of LDTI and is currently unaudited. It is
possible that the final audited financial results may differ, perhaps materially, from the information included in this financial supplement. In addition, the unaudited financial results reported in this financial supplement are not indicative of
future financial results, although as the company has indicated, it does expect the quarterly volatility of results, particularly in its Long-Term Care Insurance and Life and Annuities segments, to extend to future periods with the adoption of LDTI.
There are some changes related to the implementation of LDTI to highlight for the companys Long-Term Care Insurance and Life and Annuities segments:
|
|
|
Assumptions are best estimate and updated annually in the fourth quarter. Changes in assumptions now flow through
the liability remeasurement (gains) losses financial statement line item in the income statement, which contributes significantly to annual income volatility. However, the company will update cash flow assumptions related to the timing and approval
amounts of in-force rate actions on a quarterly basis, which could contribute to quarterly income volatility for its Long-Term Care Insurance segment. |
|
|
|
Assumptions are recorded at a more granular cohort level. Impacts from older less profitable capped cohorts that
do not have margin will more heavily influence income statement results than impacts from newer uncapped profitable cohorts that have positive margin. |
|
|
|
The liability remeasurement (gains) losses financial statement line item in the income statement includes the
differences between actual experience and best estimate assumptions on a quarterly basis and can be favorable or unfavorable. |
|
|
|
Best estimate assumptions for long-term care insurance products now include an estimate for benefit reductions
from both in-force rate actions and legal settlements. Similarly, cash payments made to policyholders who elect certain reduced benefit options in connection with long-term care insurance legal settlements,
referred to as settlement payments, are also included in the liability for future policyholder benefits. Therefore, the impacts from benefit reductions and settlement payments will only impact the income statement on a quarterly basis to
the extent that actual experience differs from expectations as mentioned above. There was no change to how the company accounts for premiums related to in-force rate actions, which are recorded to the income
statement when they occur. |
|
|
|
Market risk benefits (primarily variable annuities) are recorded at fair value. The company excludes changes in
fair value of market risk benefits attributable to interest rates, equity markets and associated hedges from adjusted operating income (loss). See page 25 for additional details. |
Additional information concerning the companys long-term care insurance business is included on page 22 of this financial supplement. As disclosed on page
22, in the fourth quarter of 2022, the liability remeasurement gain of $255 million in the companys long-term care insurance business reflected favorable assumption updates of $303 million, largely from an update to legal settlement
elections attributable to the inclusion of a second legal settlement and the resulting expected reserve reduction, net of settlement payments to policyholders. This settlement, comprised of PCS I and PSC II policies, represents approximately 15% of
the overall block and impacts older unprofitable capped cohorts. When the company updates its assumptions for its third long-term care insurance legal settlement in the fourth quarter of 2023 for its Choice II policies, which represents
approximately 35% of the overall block, any changes would have a muted income statement impact because this settlement impacts profitable uncapped cohorts. As previously disclosed, the companys blocks with profits or margin have a net premium
ratio below 100% and therefore have less impact on liability remeasurement (gains) losses in the income statement.
Page 23 provides further information for
investors on the companys long-term care insurance business and the impact of in-force rate actions, including the legal settlements, on pre-tax statutory
earnings.
Thank you for your continued interest in Genworth Financial, Inc.
Regards,
Brian Johnson, Investor Relations
InvestorInfo@genworth.com
3
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
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 companys President and Chief Executive Officer (Principal Executive
Officer), who serves as 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), changes in fair value of market risk benefits and
associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items. A component of the
companys 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 companys discretion and are influenced by market opportunities, as well as asset-liability matching considerations. The company excludes net investment gains (losses), changes in fair value of market risk benefits and
associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income
(loss) because, in the companys opinion, they are not indicative of overall operating performance.
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 companys 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% tax rate and are net of the portion attributable to noncontrolling interests. Changes in fair value of
market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments.
In the third and fourth
quarters of 2022, the company incurred $6 million and $2 million, respectively, of pre-tax pension plan termination costs related to one of its defined benefit pension plans. There were no other
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 available to Genworth Financial, Inc.s common stockholders to adjusted operating income 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 to 39 of this financial supplement.
Statutory Accounting Data
The company presents certain
supplemental statutory data for Genworth Life Insurance Company (GLIC) and its consolidating life insurance subsidiaries that has been prepared on the basis of statutory accounting principles (SAP). GLIC and its consolidating life insurance
subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners that are prepared using SAP, an accounting basis either prescribed or permitted by such authorities. Due to
differences in methodology between SAP and U.S. GAAP, the values for assets, liabilities and equity, and the recognition of income and expenses, reflected in financial statements prepared in accordance with U.S. GAAP are materially different from
those reflected in financial statements prepared under SAP. This supplemental statutory data should not be viewed as an alternative to, or used in lieu of, U.S. GAAP.
This supplemental statutory data includes the impact from in-force rate actions on
pre-tax long-term care insurance statutory earnings. Statutory pre-tax earnings represent the net gain from operations, including the impact from in-force rate actions, before dividends to policyholders, refunds to members and federal income taxes and before realized capital gains or (losses). Management uses and provides this supplemental statutory data
because it believes it provides a useful measure of, among other things, statutory pre-tax earnings and the adequacy of capital. Management uses this data to measure against its policy to manage the U.S. life
insurance companies with internally generated capital.
4
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Results of Operations and Selected Operating Performance Measures
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.
The annually-determined tax rates and adjustments to each segments provision for income taxes are estimates which are subject to review and could change
from year to year. U.S. GAAP generally requires an annualized effective tax rate to be used for interim reporting periods, utilizing projections of full year results. However, in certain circumstances it is appropriate to record the actual effective
tax rate for the period if a reliable full year estimate cannot be made. For the three months ended March 31, 2023, June 30, 2023 and September 30, 2023, the company utilized the actual effective tax rate for the interim period to
record the provision for income taxes for its Long-Term Care Insurance and Life and Annuities segments and the annualized projected effective tax rate for its Enact segment and Corporate and Other. The company utilized the effective tax rate for the
year ended December 31, 2022 in determining the re-presented provision for income taxes for the quarters in 2022.
This financial supplement contains selected operating performance measures including sales and insurance
in-force or risk in-force which are commonly used in the insurance industry as measures of operating performance.
Management regularly monitors and reports sales metrics as a measure of volume of new business generated in a period. Sales refer to new insurance written for
mortgage insurance products included in the companys Enact segment. The company considers new insurance written to be a measure of the operating performance of its Enact segment because it represents a measure of new sales of insurance
policies during a specified period, rather than a measure of revenues or profitability during that period.
Management regularly monitors and reports
insurance in-force, risk in-force and a loss ratio for the companys Enact segment. Insurance in-force is a measure of the
aggregate unpaid principal balance as of the respective reporting date for loans insured by the companys U.S. mortgage insurance subsidiaries. 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 the operating performance of its Enact
segment 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. The loss ratio is the ratio
of benefits and other changes in policy reserves to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance and helps to enhance the understanding of the operating performance of the Enact segment.
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.
5
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Financial Highlights
(amounts in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data |
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
Total Genworth Financial, Inc.s stockholders equity, excluding accumulated other
comprehensive income (loss) |
|
$ |
10,276 |
|
|
$ |
10,321 |
|
|
$ |
10,292 |
|
|
$ |
10,245 |
|
|
$ |
9,892 |
|
Total accumulated other comprehensive income
(loss)(1) |
|
|
(2,220 |
) |
|
|
(2,861 |
) |
|
|
(2,853 |
) |
|
|
(2,614 |
) |
|
|
(2,632 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
$ |
8,056 |
|
|
$ |
7,460 |
|
|
$ |
7,439 |
|
|
$ |
7,631 |
|
|
$ |
7,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
17.80 |
|
|
$ |
15.98 |
|
|
$ |
15.28 |
|
|
$ |
15.40 |
|
|
$ |
14.44 |
|
Book value per share, excluding accumulated other comprehensive income (loss) |
|
$ |
22.70 |
|
|
$ |
22.11 |
|
|
$ |
21.14 |
|
|
$ |
20.68 |
|
|
$ |
19.68 |
|
Common shares outstanding as of the balance sheet date |
|
|
452.7 |
|
|
|
466.8 |
|
|
|
486.9 |
|
|
|
495.4 |
|
|
|
502.6 |
|
|
|
|
|
Three months ended |
|
Quarterly Average ROE |
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
U.S. GAAP Basis ROE |
|
|
1.1 |
% |
|
|
5.3 |
% |
|
|
4.8 |
% |
|
|
15.1 |
% |
|
|
5.5 |
% |
Operating ROE(2) |
|
|
1.6 |
% |
|
|
3.3 |
% |
|
|
5.6 |
% |
|
|
13.4 |
% |
|
|
6.4 |
% |
|
|
|
|
|
|
Basic and Diluted Shares |
|
Three months ended September 30, 2023 |
|
|
Nine months ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares used in basic earnings per share calculations |
|
|
460.5 |
|
|
|
475.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Potentially dilutive securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options, restricted stock units and other equity-based awards |
|
|
5.5 |
|
|
|
6.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares used in diluted earnings per share calculations |
|
|
466.0 |
|
|
|
481.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
As of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and
September 30, 2022, total accumulated other comprehensive income (loss) includes $1,826 million, $(964) million, $(1,628) million, $(403) million and $115 million, net of taxes, respectively, related to changes in the discount rate
used to remeasure the liability for future policy benefits and related reinsurance recoverables. |
(2) |
See page 37 herein for a reconciliation of U.S. GAAP Basis ROE to Operating ROE. |
6
Consolidated Quarterly Results
7
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Consolidated Net Income by Quarter
(amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
915 |
|
|
$ |
902 |
|
|
$ |
915 |
|
|
$ |
2,732 |
|
|
$ |
918 |
|
|
$ |
929 |
|
|
$ |
916 |
|
|
$ |
917 |
|
|
$ |
3,680 |
|
Net investment income |
|
|
801 |
|
|
|
785 |
|
|
|
787 |
|
|
|
2,373 |
|
|
|
787 |
|
|
|
808 |
|
|
|
787 |
|
|
|
764 |
|
|
|
3,146 |
|
Net investment gains (losses) |
|
|
(43 |
) |
|
|
39 |
|
|
|
(11 |
) |
|
|
(15 |
) |
|
|
(5 |
) |
|
|
(58 |
) |
|
|
19 |
|
|
|
42 |
|
|
|
(2 |
) |
Policy fees and other income |
|
|
158 |
|
|
|
166 |
|
|
|
163 |
|
|
|
487 |
|
|
|
167 |
|
|
|
169 |
|
|
|
165 |
|
|
|
170 |
|
|
|
671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,831 |
|
|
|
1,892 |
|
|
|
1,854 |
|
|
|
5,577 |
|
|
|
1,867 |
|
|
|
1,848 |
|
|
|
1,887 |
|
|
|
1,893 |
|
|
|
7,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
1,199 |
|
|
|
1,175 |
|
|
|
1,176 |
|
|
|
3,550 |
|
|
|
1,209 |
|
|
|
1,159 |
|
|
|
768 |
|
|
|
1,167 |
|
|
|
4,303 |
|
Liability remeasurement (gains) losses |
|
|
116 |
|
|
|
70 |
|
|
|
(15 |
) |
|
|
171 |
|
|
|
(267 |
) |
|
|
17 |
|
|
|
24 |
|
|
|
(64 |
) |
|
|
(290 |
) |
Changes in fair value of market risk benefits and associated hedges |
|
|
(24 |
) |
|
|
(19 |
) |
|
|
17 |
|
|
|
(26 |
) |
|
|
(56 |
) |
|
|
(27 |
) |
|
|
20 |
|
|
|
(41 |
) |
|
|
(104 |
) |
Interest credited |
|
|
127 |
|
|
|
126 |
|
|
|
126 |
|
|
|
379 |
|
|
|
125 |
|
|
|
128 |
|
|
|
126 |
|
|
|
125 |
|
|
|
504 |
|
Acquisition and operating expenses, net of deferrals |
|
|
228 |
|
|
|
226 |
|
|
|
240 |
|
|
|
694 |
|
|
|
225 |
|
|
|
245 |
|
|
|
579 |
|
|
|
236 |
|
|
|
1,285 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
65 |
|
|
|
64 |
|
|
|
72 |
|
|
|
201 |
|
|
|
74 |
|
|
|
80 |
|
|
|
84 |
|
|
|
88 |
|
|
|
326 |
|
Interest expense |
|
|
30 |
|
|
|
29 |
|
|
|
29 |
|
|
|
88 |
|
|
|
28 |
|
|
|
26 |
|
|
|
26 |
|
|
|
26 |
|
|
|
106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
1,741 |
|
|
|
1,671 |
|
|
|
1,645 |
|
|
|
5,057 |
|
|
|
1,338 |
|
|
|
1,628 |
|
|
|
1,627 |
|
|
|
1,537 |
|
|
|
6,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
90 |
|
|
|
221 |
|
|
|
209 |
|
|
|
520 |
|
|
|
529 |
|
|
|
220 |
|
|
|
260 |
|
|
|
356 |
|
|
|
1,365 |
|
Provision for income taxes |
|
|
30 |
|
|
|
55 |
|
|
|
55 |
|
|
|
140 |
|
|
|
119 |
|
|
|
54 |
|
|
|
62 |
|
|
|
84 |
|
|
|
319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
60 |
|
|
|
166 |
|
|
|
154 |
|
|
|
380 |
|
|
|
410 |
|
|
|
166 |
|
|
|
198 |
|
|
|
272 |
|
|
|
1,046 |
|
Net income (loss) from discontinued operations, net of taxes(1) |
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
2 |
|
|
|
(2 |
) |
|
|
5 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
60 |
|
|
|
168 |
|
|
|
154 |
|
|
|
382 |
|
|
|
408 |
|
|
|
171 |
|
|
|
197 |
|
|
|
270 |
|
|
|
1,046 |
|
Less: net income from continuing operations attributable to noncontrolling interests |
|
|
31 |
|
|
|
31 |
|
|
|
32 |
|
|
|
94 |
|
|
|
27 |
|
|
|
35 |
|
|
|
38 |
|
|
|
30 |
|
|
|
130 |
|
Less: net income from discontinued operations attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
$ |
29 |
|
|
$ |
137 |
|
|
$ |
122 |
|
|
$ |
288 |
|
|
$ |
381 |
|
|
$ |
136 |
|
|
$ |
159 |
|
|
$ |
240 |
|
|
$ |
916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to Genworth Financial, Inc.s common
stockholders |
|
$ |
29 |
|
|
$ |
135 |
|
|
$ |
122 |
|
|
$ |
286 |
|
|
$ |
383 |
|
|
$ |
131 |
|
|
$ |
160 |
|
|
$ |
242 |
|
|
$ |
916 |
|
Income (loss) from discontinued operations available to Genworth Financial, Inc.s common
stockholders |
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
2 |
|
|
|
(2 |
) |
|
|
5 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
$ |
29 |
|
|
$ |
137 |
|
|
$ |
122 |
|
|
$ |
288 |
|
|
$ |
381 |
|
|
$ |
136 |
|
|
$ |
159 |
|
|
$ |
240 |
|
|
$ |
916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to Genworth Financial, Inc.s common stockholders
per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.28 |
|
|
$ |
0.25 |
|
|
$ |
0.60 |
|
|
$ |
0.77 |
|
|
$ |
0.26 |
|
|
$ |
0.32 |
|
|
$ |
0.48 |
|
|
$ |
1.82 |
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.28 |
|
|
$ |
0.24 |
|
|
$ |
0.59 |
|
|
$ |
0.76 |
|
|
$ |
0.26 |
|
|
$ |
0.31 |
|
|
$ |
0.47 |
|
|
$ |
1.79 |
|
Net income available to Genworth Financial, Inc.s common stockholders per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.29 |
|
|
$ |
0.25 |
|
|
$ |
0.61 |
|
|
$ |
0.77 |
|
|
$ |
0.27 |
|
|
$ |
0.31 |
|
|
$ |
0.47 |
|
|
$ |
1.82 |
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.29 |
|
|
$ |
0.24 |
|
|
$ |
0.60 |
|
|
$ |
0.76 |
|
|
$ |
0.27 |
|
|
$ |
0.31 |
|
|
$ |
0.46 |
|
|
$ |
1.79 |
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
460.5 |
|
|
|
473.2 |
|
|
|
492.3 |
|
|
|
475.3 |
|
|
|
496.5 |
|
|
|
503.8 |
|
|
|
508.9 |
|
|
|
508.3 |
|
|
|
504.4 |
|
Diluted |
|
|
466.0 |
|
|
|
478.1 |
|
|
|
500.1 |
|
|
|
481.4 |
|
|
|
502.9 |
|
|
|
509.3 |
|
|
|
514.1 |
|
|
|
517.4 |
|
|
|
510.9 |
|
(1) |
Income (loss) from discontinued operations primarily relates to a settlement agreement involving the
companys former lifestyle protection insurance business that was sold on December 1, 2015. |
8
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Reconciliation of Net Income to Adjusted Operating Income
(amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
$ |
29 |
|
|
$ |
137 |
|
|
$ |
122 |
|
|
$ |
288 |
|
|
$ |
381 |
|
|
$ |
136 |
|
|
$ |
159 |
|
|
$ |
240 |
|
|
$ |
916 |
|
Add: net income from continuing operations attributable to noncontrolling interests |
|
|
31 |
|
|
|
31 |
|
|
|
32 |
|
|
|
94 |
|
|
|
27 |
|
|
|
35 |
|
|
|
38 |
|
|
|
30 |
|
|
|
130 |
|
Add: net income from discontinued operations attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
60 |
|
|
|
168 |
|
|
|
154 |
|
|
|
382 |
|
|
|
408 |
|
|
|
171 |
|
|
|
197 |
|
|
|
270 |
|
|
|
1,046 |
|
Less: income (loss) from discontinued operations, net of taxes |
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
2 |
|
|
|
(2 |
) |
|
|
5 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
60 |
|
|
|
166 |
|
|
|
154 |
|
|
|
380 |
|
|
|
410 |
|
|
|
166 |
|
|
|
198 |
|
|
|
272 |
|
|
|
1,046 |
|
Less: net income from continuing operations attributable to noncontrolling interests |
|
|
31 |
|
|
|
31 |
|
|
|
32 |
|
|
|
94 |
|
|
|
27 |
|
|
|
35 |
|
|
|
38 |
|
|
|
30 |
|
|
|
130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON
STOCKHOLDERS |
|
|
29 |
|
|
|
135 |
|
|
|
122 |
|
|
|
286 |
|
|
|
383 |
|
|
|
131 |
|
|
|
160 |
|
|
|
242 |
|
|
|
916 |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S
COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net(1)
|
|
|
43 |
|
|
|
(41 |
) |
|
|
11 |
|
|
|
13 |
|
|
|
5 |
|
|
|
58 |
|
|
|
(19 |
) |
|
|
(42 |
) |
|
|
2 |
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges(2) |
|
|
(26 |
) |
|
|
(23 |
) |
|
|
14 |
|
|
|
(35 |
) |
|
|
(64 |
) |
|
|
(32 |
) |
|
|
8 |
|
|
|
(54 |
) |
|
|
(142 |
) |
(Gains) losses on early extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
3 |
|
|
|
1 |
|
|
|
3 |
|
|
|
6 |
|
Expenses related to restructuring |
|
|
|
|
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
2 |
|
Pension plan termination costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
Taxes on adjustments |
|
|
(4 |
) |
|
|
13 |
|
|
|
(5 |
) |
|
|
4 |
|
|
|
12 |
|
|
|
(8 |
) |
|
|
2 |
|
|
|
20 |
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
42 |
|
|
$ |
85 |
|
|
$ |
144 |
|
|
$ |
271 |
|
|
$ |
338 |
|
|
$ |
158 |
|
|
$ |
153 |
|
|
$ |
169 |
|
|
$ |
818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enact segment |
|
$ |
134 |
|
|
$ |
146 |
|
|
$ |
143 |
|
|
$ |
423 |
|
|
$ |
120 |
|
|
$ |
156 |
|
|
$ |
167 |
|
|
$ |
135 |
|
|
$ |
578 |
|
Long-Term Care Insurance segment |
|
|
(71 |
) |
|
|
(43 |
) |
|
|
23 |
|
|
|
(91 |
) |
|
|
204 |
|
|
|
26 |
|
|
|
17 |
|
|
|
73 |
|
|
|
320 |
|
Life and Annuities segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life Insurance |
|
|
(25 |
) |
|
|
(17 |
) |
|
|
(27 |
) |
|
|
(69 |
) |
|
|
1 |
|
|
|
(28 |
) |
|
|
(37 |
) |
|
|
(47 |
) |
|
|
(111 |
) |
Fixed Annuities |
|
|
17 |
|
|
|
10 |
|
|
|
14 |
|
|
|
41 |
|
|
|
14 |
|
|
|
15 |
|
|
|
20 |
|
|
|
13 |
|
|
|
62 |
|
Variable Annuities |
|
|
5 |
|
|
|
9 |
|
|
|
9 |
|
|
|
23 |
|
|
|
8 |
|
|
|
7 |
|
|
|
2 |
|
|
|
4 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Life and Annuities segment |
|
|
(3 |
) |
|
|
2 |
|
|
|
(4 |
) |
|
|
(5 |
) |
|
|
23 |
|
|
|
(6 |
) |
|
|
(15 |
) |
|
|
(30 |
) |
|
|
(28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
(18 |
) |
|
|
(20 |
) |
|
|
(18 |
) |
|
|
(56 |
) |
|
|
(9 |
) |
|
|
(18 |
) |
|
|
(16 |
) |
|
|
(9 |
) |
|
|
(52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
42 |
|
|
$ |
85 |
|
|
$ |
144 |
|
|
$ |
271 |
|
|
$ |
338 |
|
|
$ |
158 |
|
|
$ |
153 |
|
|
$ |
169 |
|
|
$ |
818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Genworth Financial, Inc.s common stockholders per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.29 |
|
|
$ |
0.25 |
|
|
$ |
0.61 |
|
|
$ |
0.77 |
|
|
$ |
0.27 |
|
|
$ |
0.31 |
|
|
$ |
0.47 |
|
|
$ |
1.82 |
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.29 |
|
|
$ |
0.24 |
|
|
$ |
0.60 |
|
|
$ |
0.76 |
|
|
$ |
0.27 |
|
|
$ |
0.31 |
|
|
$ |
0.46 |
|
|
$ |
1.79 |
|
Adjusted operating income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.09 |
|
|
$ |
0.18 |
|
|
$ |
0.29 |
|
|
$ |
0.57 |
|
|
$ |
0.68 |
|
|
$ |
0.31 |
|
|
$ |
0.30 |
|
|
$ |
0.33 |
|
|
$ |
1.62 |
|
Diluted |
|
$ |
0.09 |
|
|
$ |
0.18 |
|
|
$ |
0.29 |
|
|
$ |
0.56 |
|
|
$ |
0.67 |
|
|
$ |
0.31 |
|
|
$ |
0.30 |
|
|
$ |
0.33 |
|
|
$ |
1.60 |
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
460.5 |
|
|
|
473.2 |
|
|
|
492.3 |
|
|
|
475.3 |
|
|
|
496.5 |
|
|
|
503.8 |
|
|
|
508.9 |
|
|
|
508.3 |
|
|
|
504.4 |
|
Diluted |
|
|
466.0 |
|
|
|
478.1 |
|
|
|
500.1 |
|
|
|
481.4 |
|
|
|
502.9 |
|
|
|
509.3 |
|
|
|
514.1 |
|
|
|
517.4 |
|
|
|
510.9 |
|
(1) |
Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests (see page
35 for reconciliation). |
(2) |
Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in
reserves, attributed fees and benefit payments (see page 25 for reconciliation). |
9
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Consolidated Balance Sheets
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities
available-for-sale, at fair value(1) |
|
$ |
43,968 |
|
|
$ |
46,070 |
|
|
$ |
47,381 |
|
|
$ |
46,583 |
|
|
$ |
46,215 |
|
Equity securities, at fair value |
|
|
363 |
|
|
|
378 |
|
|
|
364 |
|
|
|
319 |
|
|
|
274 |
|
Commercial mortgage loans(2) |
|
|
6,818 |
|
|
|
6,876 |
|
|
|
6,915 |
|
|
|
7,032 |
|
|
|
7,086 |
|
Less: Allowance for credit losses |
|
|
(25 |
) |
|
|
(24 |
) |
|
|
(24 |
) |
|
|
(22 |
) |
|
|
(23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loans, net |
|
|
6,793 |
|
|
|
6,852 |
|
|
|
6,891 |
|
|
|
7,010 |
|
|
|
7,063 |
|
Policy loans |
|
|
2,233 |
|
|
|
2,270 |
|
|
|
2,133 |
|
|
|
2,139 |
|
|
|
2,153 |
|
Limited partnerships |
|
|
2,699 |
|
|
|
2,585 |
|
|
|
2,456 |
|
|
|
2,331 |
|
|
|
2,195 |
|
Other invested assets |
|
|
645 |
|
|
|
648 |
|
|
|
617 |
|
|
|
566 |
|
|
|
590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments |
|
|
56,701 |
|
|
|
58,803 |
|
|
|
59,842 |
|
|
|
58,948 |
|
|
|
58,490 |
|
Cash, cash equivalents and restricted cash |
|
|
1,993 |
|
|
|
2,173 |
|
|
|
1,752 |
|
|
|
1,799 |
|
|
|
1,561 |
|
Accrued investment income |
|
|
620 |
|
|
|
553 |
|
|
|
700 |
|
|
|
643 |
|
|
|
616 |
|
Deferred acquisition costs |
|
|
2,042 |
|
|
|
2,096 |
|
|
|
2,150 |
|
|
|
2,211 |
|
|
|
2,276 |
|
Intangible assets |
|
|
199 |
|
|
|
201 |
|
|
|
203 |
|
|
|
203 |
|
|
|
209 |
|
Reinsurance recoverable |
|
|
17,623 |
|
|
|
19,113 |
|
|
|
19,606 |
|
|
|
19,059 |
|
|
|
18,906 |
|
Less: Allowance for credit losses |
|
|
(28 |
) |
|
|
(64 |
) |
|
|
(64 |
) |
|
|
(63 |
) |
|
|
(64 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinsurance recoverable, net |
|
|
17,595 |
|
|
|
19,049 |
|
|
|
19,542 |
|
|
|
18,996 |
|
|
|
18,842 |
|
Other assets |
|
|
453 |
|
|
|
445 |
|
|
|
478 |
|
|
|
488 |
|
|
|
493 |
|
Deferred tax asset |
|
|
1,580 |
|
|
|
1,954 |
|
|
|
2,002 |
|
|
|
1,983 |
|
|
|
2,092 |
|
Market risk benefit assets |
|
|
39 |
|
|
|
37 |
|
|
|
28 |
|
|
|
26 |
|
|
|
20 |
|
Separate account assets |
|
|
4,244 |
|
|
|
4,533 |
|
|
|
4,479 |
|
|
|
4,417 |
|
|
|
4,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
85,466 |
|
|
$ |
89,844 |
|
|
$ |
91,176 |
|
|
$ |
89,714 |
|
|
$ |
88,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Amortized cost of $49,855 million, $49,864 million, $50,461 million, $50,834 million and
$51,248 million as of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively, and allowance for credit losses of $6 million, $4 million and $15 million
as of September 30, 2023, June 30, 2023 and March 31, 2023 and $ as of December 31, 2022 and September 30, 2022. |
(2) |
Net of unamortized balance of loan origination fees and costs of $4 million as of September 30, 2023,
June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022. |
10
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Consolidated Balance Sheets
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
51,740 |
|
|
$ |
56,443 |
|
|
$ |
57,531 |
|
|
$ |
55,407 |
|
|
$ |
54,553 |
|
Policyholder account balances |
|
|
15,590 |
|
|
|
15,922 |
|
|
|
16,202 |
|
|
|
16,564 |
|
|
|
16,985 |
|
Market risk benefit liabilities |
|
|
579 |
|
|
|
666 |
|
|
|
761 |
|
|
|
748 |
|
|
|
832 |
|
Liability for policy and contract claims |
|
|
631 |
|
|
|
628 |
|
|
|
665 |
|
|
|
683 |
|
|
|
669 |
|
Unearned premiums |
|
|
162 |
|
|
|
175 |
|
|
|
189 |
|
|
|
203 |
|
|
|
213 |
|
Other liabilities |
|
|
2,038 |
|
|
|
1,607 |
|
|
|
1,510 |
|
|
|
1,687 |
|
|
|
1,701 |
|
Long-term borrowings |
|
|
1,602 |
|
|
|
1,601 |
|
|
|
1,600 |
|
|
|
1,611 |
|
|
|
1,622 |
|
Separate account liabilities |
|
|
4,244 |
|
|
|
4,533 |
|
|
|
4,479 |
|
|
|
4,417 |
|
|
|
4,298 |
|
Liabilities related to discontinued operations(1)
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
8 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
76,588 |
|
|
|
81,577 |
|
|
|
82,944 |
|
|
|
81,328 |
|
|
|
80,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
11,877 |
|
|
|
11,869 |
|
|
|
11,863 |
|
|
|
11,869 |
|
|
|
11,865 |
|
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in the discount rate used to measure future policy benefits |
|
|
1,826 |
|
|
|
(964 |
) |
|
|
(1,628 |
) |
|
|
(403 |
) |
|
|
115 |
|
All other |
|
|
(4,046 |
) |
|
|
(1,897 |
) |
|
|
(1,225 |
) |
|
|
(2,211 |
) |
|
|
(2,747 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accumulated other comprehensive income (loss) |
|
|
(2,220 |
) |
|
|
(2,861 |
) |
|
|
(2,853 |
) |
|
|
(2,614 |
) |
|
|
(2,632 |
) |
Retained earnings |
|
|
1,426 |
|
|
|
1,398 |
|
|
|
1,261 |
|
|
|
1,139 |
|
|
|
760 |
|
Treasury stock, at cost |
|
|
(3,028 |
) |
|
|
(2,947 |
) |
|
|
(2,833 |
) |
|
|
(2,764 |
) |
|
|
(2,734 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
8,056 |
|
|
|
7,460 |
|
|
|
7,439 |
|
|
|
7,631 |
|
|
|
7,260 |
|
Noncontrolling interests |
|
|
822 |
|
|
|
807 |
|
|
|
793 |
|
|
|
755 |
|
|
|
758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
8,878 |
|
|
|
8,267 |
|
|
|
8,232 |
|
|
|
8,386 |
|
|
|
8,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
85,466 |
|
|
$ |
89,844 |
|
|
$ |
91,176 |
|
|
$ |
89,714 |
|
|
$ |
88,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Liabilities related to discontinued operations relates to a liability recorded in connection with a settlement
agreement reached with AXA and other unrelated liabilities involving the sale of the companys former lifestyle protection insurance business. |
11
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Consolidated Balance Sheet by Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
|
Enact |
|
|
Long-Term Care Insurance |
|
|
Life and Annuities |
|
|
Corporate and Other(1)
|
|
|
Total |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments |
|
$ |
5,750 |
|
|
$ |
33,890 |
|
|
$ |
18,457 |
|
|
$ |
1,217 |
|
|
$ |
59,314 |
|
Deferred acquisition costs and intangible assets |
|
|
41 |
|
|
|
917 |
|
|
|
1,273 |
|
|
|
10 |
|
|
|
2,241 |
|
Reinsurance recoverable, net |
|
|
|
|
|
|
6,814 |
|
|
|
10,781 |
|
|
|
|
|
|
|
17,595 |
|
Deferred tax and other assets |
|
|
209 |
|
|
|
1,306 |
|
|
|
317 |
|
|
|
201 |
|
|
|
2,033 |
|
Market risk benefit assets |
|
|
|
|
|
|
|
|
|
|
39 |
|
|
|
|
|
|
|
39 |
|
Separate account assets |
|
|
|
|
|
|
|
|
|
|
4,244 |
|
|
|
|
|
|
|
4,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
6,000 |
|
|
$ |
42,927 |
|
|
$ |
35,111 |
|
|
$ |
1,428 |
|
|
$ |
85,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
|
|
|
$ |
38,928 |
|
|
$ |
12,812 |
|
|
$ |
|
|
|
$ |
51,740 |
|
Policyholder account balances |
|
|
|
|
|
|
|
|
|
|
15,590 |
|
|
|
|
|
|
|
15,590 |
|
Market risk benefit liabilities |
|
|
|
|
|
|
|
|
|
|
579 |
|
|
|
|
|
|
|
579 |
|
Liability for policy and contract claims |
|
|
501 |
|
|
|
|
|
|
|
123 |
|
|
|
7 |
|
|
|
631 |
|
Unearned premiums |
|
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
162 |
|
Other liabilities |
|
|
124 |
|
|
|
1,175 |
|
|
|
250 |
|
|
|
489 |
|
|
|
2,038 |
|
Borrowings |
|
|
745 |
|
|
|
|
|
|
|
|
|
|
|
857 |
|
|
|
1,602 |
|
Separate account liabilities |
|
|
|
|
|
|
|
|
|
|
4,244 |
|
|
|
|
|
|
|
4,244 |
|
Liabilities related to discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,532 |
|
|
|
40,103 |
|
|
|
33,598 |
|
|
|
1,355 |
|
|
|
76,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated equity, excluding accumulated other comprehensive income (loss) |
|
|
3,974 |
|
|
|
2,690 |
|
|
|
2,940 |
|
|
|
672 |
|
|
|
10,276 |
|
Allocated accumulated other comprehensive income (loss) |
|
|
(328 |
) |
|
|
134 |
|
|
|
(1,427 |
) |
|
|
(599 |
) |
|
|
(2,220 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
3,646 |
|
|
|
2,824 |
|
|
|
1,513 |
|
|
|
73 |
|
|
|
8,056 |
|
Noncontrolling interests |
|
|
822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
4,468 |
|
|
|
2,824 |
|
|
|
1,513 |
|
|
|
73 |
|
|
|
8,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
6,000 |
|
|
$ |
42,927 |
|
|
$ |
35,111 |
|
|
$ |
1,428 |
|
|
$ |
85,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes inter-segment eliminations and other businesses, including
start-up growth initiatives and certain international businesses, that are managed outside the operating segments. |
12
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Consolidated Balance Sheet by Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
|
|
Enact |
|
|
Long-Term Care Insurance |
|
|
Life and Annuities |
|
|
Corporate and Other(1)
|
|
|
Total |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments |
|
$ |
5,675 |
|
|
$ |
35,113 |
|
|
$ |
19,449 |
|
|
$ |
1,292 |
|
|
$ |
61,529 |
|
Deferred acquisition costs and intangible assets |
|
|
39 |
|
|
|
932 |
|
|
|
1,317 |
|
|
|
9 |
|
|
|
2,297 |
|
Reinsurance recoverable, net |
|
|
|
|
|
|
7,454 |
|
|
|
11,595 |
|
|
|
|
|
|
|
19,049 |
|
Deferred tax and other assets |
|
|
208 |
|
|
|
1,695 |
|
|
|
237 |
|
|
|
259 |
|
|
|
2,399 |
|
Market risk benefit assets |
|
|
|
|
|
|
|
|
|
|
37 |
|
|
|
|
|
|
|
37 |
|
Separate account assets |
|
|
|
|
|
|
|
|
|
|
4,533 |
|
|
|
|
|
|
|
4,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,922 |
|
|
$ |
45,194 |
|
|
$ |
37,168 |
|
|
$ |
1,560 |
|
|
$ |
89,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
|
|
|
$ |
42,661 |
|
|
$ |
13,782 |
|
|
$ |
|
|
|
$ |
56,443 |
|
Policyholder account balances |
|
|
|
|
|
|
|
|
|
|
15,922 |
|
|
|
|
|
|
|
15,922 |
|
Market risk benefit liabilities |
|
|
|
|
|
|
|
|
|
|
666 |
|
|
|
|
|
|
|
666 |
|
Liability for policy and contract claims |
|
|
490 |
|
|
|
|
|
|
|
131 |
|
|
|
7 |
|
|
|
628 |
|
Unearned premiums |
|
|
175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
175 |
|
Other liabilities |
|
|
125 |
|
|
|
751 |
|
|
|
284 |
|
|
|
447 |
|
|
|
1,607 |
|
Borrowings |
|
|
744 |
|
|
|
|
|
|
|
|
|
|
|
857 |
|
|
|
1,601 |
|
Separate account liabilities |
|
|
|
|
|
|
|
|
|
|
4,533 |
|
|
|
|
|
|
|
4,533 |
|
Liabilities related to discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,534 |
|
|
|
43,412 |
|
|
|
35,318 |
|
|
|
1,313 |
|
|
|
81,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated equity, excluding accumulated other comprehensive income (loss) |
|
|
3,864 |
|
|
|
2,784 |
|
|
|
2,930 |
|
|
|
743 |
|
|
|
10,321 |
|
Allocated accumulated other comprehensive income (loss) |
|
|
(283 |
) |
|
|
(1,002 |
) |
|
|
(1,080 |
) |
|
|
(496 |
) |
|
|
(2,861 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
3,581 |
|
|
|
1,782 |
|
|
|
1,850 |
|
|
|
247 |
|
|
|
7,460 |
|
Noncontrolling interests |
|
|
807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
4,388 |
|
|
|
1,782 |
|
|
|
1,850 |
|
|
|
247 |
|
|
|
8,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
5,922 |
|
|
$ |
45,194 |
|
|
$ |
37,168 |
|
|
$ |
1,560 |
|
|
$ |
89,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes inter-segment eliminations and other businesses, including
start-up growth initiatives and certain international businesses, that are managed outside the operating segments. |
13
Enact Segment
14
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Adjusted Operating Income and SalesEnact Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
243 |
|
|
$ |
239 |
|
|
$ |
235 |
|
|
$ |
717 |
|
|
$ |
233 |
|
|
$ |
235 |
|
|
$ |
238 |
|
|
$ |
234 |
|
|
$ |
940 |
|
Net investment income |
|
|
55 |
|
|
|
50 |
|
|
|
46 |
|
|
|
151 |
|
|
|
45 |
|
|
|
39 |
|
|
|
36 |
|
|
|
35 |
|
|
|
155 |
|
Net investment gains (losses) |
|
|
|
|
|
|
(13 |
) |
|
|
|
|
|
|
(13 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(2 |
) |
Policy fees and other income |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
299 |
|
|
|
277 |
|
|
|
281 |
|
|
|
857 |
|
|
|
277 |
|
|
|
275 |
|
|
|
273 |
|
|
|
270 |
|
|
|
1,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
18 |
|
|
|
(4 |
) |
|
|
(11 |
) |
|
|
3 |
|
|
|
18 |
|
|
|
(40 |
) |
|
|
(62 |
) |
|
|
(10 |
) |
|
|
(94 |
) |
Acquisition and operating expenses, net of deferrals |
|
|
52 |
|
|
|
52 |
|
|
|
52 |
|
|
|
156 |
|
|
|
60 |
|
|
|
55 |
|
|
|
58 |
|
|
|
54 |
|
|
|
227 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
3 |
|
|
|
2 |
|
|
|
3 |
|
|
|
8 |
|
|
|
2 |
|
|
|
4 |
|
|
|
3 |
|
|
|
3 |
|
|
|
12 |
|
Interest expense |
|
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
39 |
|
|
|
14 |
|
|
|
12 |
|
|
|
13 |
|
|
|
13 |
|
|
|
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
86 |
|
|
|
63 |
|
|
|
57 |
|
|
|
206 |
|
|
|
94 |
|
|
|
31 |
|
|
|
12 |
|
|
|
60 |
|
|
|
197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
213 |
|
|
|
214 |
|
|
|
224 |
|
|
|
651 |
|
|
|
183 |
|
|
|
244 |
|
|
|
261 |
|
|
|
210 |
|
|
|
898 |
|
Provision for income taxes |
|
|
48 |
|
|
|
46 |
|
|
|
49 |
|
|
|
143 |
|
|
|
39 |
|
|
|
53 |
|
|
|
57 |
|
|
|
45 |
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
165 |
|
|
|
168 |
|
|
|
175 |
|
|
|
508 |
|
|
|
144 |
|
|
|
191 |
|
|
|
204 |
|
|
|
165 |
|
|
|
704 |
|
Less: net income from continuing operations attributable to noncontrolling interests |
|
|
31 |
|
|
|
31 |
|
|
|
32 |
|
|
|
94 |
|
|
|
27 |
|
|
|
35 |
|
|
|
38 |
|
|
|
30 |
|
|
|
130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON
STOCKHOLDERS |
|
|
134 |
|
|
|
137 |
|
|
|
143 |
|
|
|
414 |
|
|
|
117 |
|
|
|
156 |
|
|
|
166 |
|
|
|
135 |
|
|
|
574 |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S
COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net(1)
|
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
11 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
2 |
|
Expenses related to restructuring |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
Taxes on adjustments |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
134 |
|
|
$ |
146 |
|
|
$ |
143 |
|
|
$ |
423 |
|
|
$ |
120 |
|
|
$ |
156 |
|
|
$ |
167 |
|
|
$ |
135 |
|
|
$ |
578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary New Insurance Written (NIW) |
|
$ |
14,391 |
|
|
$ |
15,083 |
|
|
$ |
13,154 |
|
|
$ |
42,628 |
|
|
$ |
15,145 |
|
|
$ |
15,069 |
|
|
$ |
17,448 |
|
|
$ |
18,823 |
|
|
$ |
66,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of
$2 million in the second quarter of 2023. |
15
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Primary New Insurance Written MetricsEnact Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
|
Primary NIW |
|
|
% of Primary NIW |
|
|
Primary NIW |
|
|
% of Primary NIW |
|
|
Primary NIW |
|
|
% of Primary NIW |
|
|
Primary NIW |
|
|
% of Primary NIW |
|
|
Primary NIW |
|
|
% of Primary NIW |
|
|
Primary NIW |
|
|
% of Primary NIW |
|
|
Primary NIW |
|
|
% of Primary NIW |
|
Payment Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monthly |
|
$ |
14,099 |
|
|
|
98 |
% |
|
$ |
14,774 |
|
|
|
98 |
% |
|
$ |
12,809 |
|
|
|
97 |
% |
|
$ |
13,745 |
|
|
|
91 |
% |
|
$ |
14,138 |
|
|
|
94 |
% |
|
$ |
16,169 |
|
|
|
93 |
% |
|
$ |
17,071 |
|
|
|
91 |
% |
Single |
|
|
269 |
|
|
|
2 |
|
|
|
281 |
|
|
|
2 |
|
|
|
318 |
|
|
|
3 |
|
|
|
1,368 |
|
|
|
9 |
|
|
|
890 |
|
|
|
6 |
|
|
|
1,218 |
|
|
|
7 |
|
|
|
1,690 |
|
|
|
9 |
|
Other(1) |
|
|
23 |
|
|
|
|
|
|
|
28 |
|
|
|
|
|
|
|
27 |
|
|
|
|
|
|
|
32 |
|
|
|
|
|
|
|
41 |
|
|
|
|
|
|
|
61 |
|
|
|
|
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
14,391 |
|
|
|
100 |
% |
|
$ |
15,083 |
|
|
|
100 |
% |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase |
|
$ |
14,073 |
|
|
|
98 |
% |
|
$ |
14,720 |
|
|
|
98 |
% |
|
$ |
12,761 |
|
|
|
97 |
% |
|
$ |
14,744 |
|
|
|
97 |
% |
|
$ |
14,634 |
|
|
|
97 |
% |
|
$ |
16,802 |
|
|
|
96 |
% |
|
$ |
17,326 |
|
|
|
92 |
% |
Refinance |
|
|
318 |
|
|
|
2 |
|
|
|
363 |
|
|
|
2 |
|
|
|
393 |
|
|
|
3 |
|
|
|
401 |
|
|
|
3 |
|
|
|
435 |
|
|
|
3 |
|
|
|
646 |
|
|
|
4 |
|
|
|
1,497 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
14,391 |
|
|
|
100 |
% |
|
$ |
15,083 |
|
|
|
100 |
% |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Scores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over 760 |
|
$ |
6,679 |
|
|
|
46 |
% |
|
$ |
6,911 |
|
|
|
46 |
% |
|
$ |
6,004 |
|
|
|
46 |
% |
|
$ |
6,951 |
|
|
|
46 |
% |
|
$ |
6,948 |
|
|
|
46 |
% |
|
$ |
7,981 |
|
|
|
45 |
% |
|
$ |
8,359 |
|
|
|
45 |
% |
740 - 759 |
|
|
2,438 |
|
|
|
17 |
|
|
|
2,608 |
|
|
|
17 |
|
|
|
2,268 |
|
|
|
17 |
|
|
|
2,709 |
|
|
|
18 |
|
|
|
2,554 |
|
|
|
17 |
|
|
|
2,916 |
|
|
|
17 |
|
|
|
3,085 |
|
|
|
16 |
|
720 - 739 |
|
|
1,928 |
|
|
|
13 |
|
|
|
2,097 |
|
|
|
14 |
|
|
|
1,817 |
|
|
|
14 |
|
|
|
2,226 |
|
|
|
15 |
|
|
|
2,106 |
|
|
|
14 |
|
|
|
2,530 |
|
|
|
15 |
|
|
|
2,515 |
|
|
|
13 |
|
700 - 719 |
|
|
1,422 |
|
|
|
10 |
|
|
|
1,499 |
|
|
|
10 |
|
|
|
1,296 |
|
|
|
10 |
|
|
|
1,489 |
|
|
|
10 |
|
|
|
1,531 |
|
|
|
10 |
|
|
|
1,917 |
|
|
|
11 |
|
|
|
1,952 |
|
|
|
10 |
|
680 - 699 |
|
|
974 |
|
|
|
7 |
|
|
|
1,060 |
|
|
|
7 |
|
|
|
954 |
|
|
|
7 |
|
|
|
1,035 |
|
|
|
7 |
|
|
|
1,085 |
|
|
|
7 |
|
|
|
1,099 |
|
|
|
6 |
|
|
|
1,316 |
|
|
|
7 |
|
660 - 679(2) |
|
|
592 |
|
|
|
4 |
|
|
|
568 |
|
|
|
4 |
|
|
|
517 |
|
|
|
4 |
|
|
|
478 |
|
|
|
3 |
|
|
|
527 |
|
|
|
3 |
|
|
|
598 |
|
|
|
3 |
|
|
|
931 |
|
|
|
5 |
|
640 - 659 |
|
|
282 |
|
|
|
2 |
|
|
|
260 |
|
|
|
2 |
|
|
|
229 |
|
|
|
2 |
|
|
|
189 |
|
|
|
1 |
|
|
|
234 |
|
|
|
2 |
|
|
|
297 |
|
|
|
2 |
|
|
|
486 |
|
|
|
3 |
|
620 - 639 |
|
|
74 |
|
|
|
1 |
|
|
|
76 |
|
|
|
|
|
|
|
65 |
|
|
|
|
|
|
|
66 |
|
|
|
|
|
|
|
79 |
|
|
|
1 |
|
|
|
106 |
|
|
|
1 |
|
|
|
173 |
|
|
|
1 |
|
<620 |
|
|
2 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
14,391 |
|
|
|
100 |
% |
|
$ |
15,083 |
|
|
|
100 |
% |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan-To-Value
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95.01% and above |
|
$ |
2,677 |
|
|
|
18 |
% |
|
$ |
2,692 |
|
|
|
18 |
% |
|
$ |
2,106 |
|
|
|
16 |
% |
|
$ |
2,423 |
|
|
|
16 |
% |
|
$ |
1,741 |
|
|
|
11 |
% |
|
$ |
2,177 |
|
|
|
12 |
% |
|
$ |
3,146 |
|
|
|
17 |
% |
90.01% to 95.00% |
|
|
5,431 |
|
|
|
38 |
|
|
|
5,743 |
|
|
|
38 |
|
|
|
4,928 |
|
|
|
38 |
|
|
|
5,684 |
|
|
|
37 |
|
|
|
6,184 |
|
|
|
41 |
|
|
|
7,458 |
|
|
|
43 |
|
|
|
6,682 |
|
|
|
35 |
|
85.01% to 90.00% |
|
|
4,568 |
|
|
|
32 |
|
|
|
4,753 |
|
|
|
31 |
|
|
|
4,390 |
|
|
|
33 |
|
|
|
4,971 |
|
|
|
33 |
|
|
|
5,094 |
|
|
|
34 |
|
|
|
5,207 |
|
|
|
30 |
|
|
|
5,620 |
|
|
|
30 |
|
85.00% and below |
|
|
1,715 |
|
|
|
12 |
|
|
|
1,895 |
|
|
|
13 |
|
|
|
1,730 |
|
|
|
13 |
|
|
|
2,067 |
|
|
|
14 |
|
|
|
2,050 |
|
|
|
14 |
|
|
|
2,606 |
|
|
|
15 |
|
|
|
3,375 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
14,391 |
|
|
|
100 |
% |
|
$ |
15,083 |
|
|
|
100 |
% |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-To-Income
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45.01% and above |
|
$ |
4,437 |
|
|
|
31 |
% |
|
$ |
4,467 |
|
|
|
30 |
% |
|
$ |
3,538 |
|
|
|
27 |
% |
|
$ |
4,294 |
|
|
|
28 |
% |
|
$ |
3,728 |
|
|
|
25 |
% |
|
$ |
4,067 |
|
|
|
23 |
% |
|
$ |
4,452 |
|
|
|
24 |
% |
38.01% to 45.00% |
|
|
4,936 |
|
|
|
34 |
|
|
|
5,214 |
|
|
|
34 |
|
|
|
4,940 |
|
|
|
38 |
|
|
|
5,518 |
|
|
|
37 |
|
|
|
5,681 |
|
|
|
38 |
|
|
|
6,436 |
|
|
|
37 |
|
|
|
6,361 |
|
|
|
34 |
|
38.00% and below |
|
|
5,018 |
|
|
|
35 |
|
|
|
5,402 |
|
|
|
36 |
|
|
|
4,676 |
|
|
|
35 |
|
|
|
5,333 |
|
|
|
35 |
|
|
|
5,660 |
|
|
|
37 |
|
|
|
6,945 |
|
|
|
40 |
|
|
|
8,010 |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
$ |
14,391 |
|
|
|
100 |
% |
|
$ |
15,083 |
|
|
|
100 |
% |
|
$ |
13,154 |
|
|
|
100 |
% |
|
$ |
15,145 |
|
|
|
100 |
% |
|
$ |
15,069 |
|
|
|
100 |
% |
|
$ |
17,448 |
|
|
|
100 |
% |
|
$ |
18,823 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes loans with annual and split payment types. |
(2) |
Loans with unknown FICO scores are included in the 660-679 category.
|
16
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Other MetricsEnact Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Primary Insurance In-Force(1) |
|
$ |
262,014 |
|
|
$ |
257,816 |
|
|
$ |
252,516 |
|
|
|
|
|
|
$ |
248,262 |
|
|
$ |
241,813 |
|
|
$ |
237,563 |
|
|
$ |
231,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk In-Force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary(2) |
|
$ |
67,056 |
|
|
$ |
65,714 |
|
|
$ |
64,106 |
|
|
|
|
|
|
$ |
62,791 |
|
|
$ |
61,124 |
|
|
$ |
59,911 |
|
|
$ |
58,295 |
|
|
|
|
|
Pool |
|
|
70 |
|
|
|
73 |
|
|
|
76 |
|
|
|
|
|
|
|
79 |
|
|
|
84 |
|
|
|
89 |
|
|
|
97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Risk In-Force |
|
$ |
67,126 |
|
|
$ |
65,787 |
|
|
$ |
64,182 |
|
|
|
|
|
|
$ |
62,870 |
|
|
$ |
61,208 |
|
|
$ |
60,000 |
|
|
$ |
58,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense Ratio(3) |
|
|
23 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
27 |
% |
|
|
25 |
% |
|
|
26 |
% |
|
|
24 |
% |
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
Primary Persistency Rate |
|
|
84 |
% |
|
|
84 |
% |
|
|
85 |
% |
|
|
84 |
% |
|
|
86 |
% |
|
|
82 |
% |
|
|
80 |
% |
|
|
76 |
% |
|
|
85 |
% |
|
|
|
|
|
|
|
|
|
|
Combined Risk To Capital Ratio(4) |
|
|
11.6:1 |
|
|
|
11.8:1 |
|
|
|
12.6:1 |
|
|
|
|
|
|
|
12.8:1 |
|
|
|
12.3:1 |
|
|
|
12.6:1 |
|
|
|
12.0:1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMICO Risk To Capital Ratio(4),(5) |
|
|
11.6:1 |
|
|
|
11.9:1 |
|
|
|
12.7:1 |
|
|
|
|
|
|
|
12.9:1 |
|
|
|
12.3:1 |
|
|
|
12.6:1 |
|
|
|
12.1:1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PMIERs Available Assets(6) |
|
$ |
5,268 |
|
|
$ |
5,093 |
|
|
$ |
5,357 |
|
|
|
|
|
|
$ |
5,206 |
|
|
$ |
5,292 |
|
|
$ |
5,147 |
|
|
$ |
5,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PMIERs Required Assets(6) |
|
$ |
3,251 |
|
|
$ |
3,135 |
|
|
$ |
3,259 |
|
|
|
|
|
|
$ |
3,156 |
|
|
$ |
3,043 |
|
|
$ |
3,100 |
|
|
$ |
2,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available Assets Above PMIERs
Requirements(6) |
|
$ |
2,017 |
|
|
$ |
1,958 |
|
|
$ |
2,098 |
|
|
|
|
|
|
$ |
2,050 |
|
|
$ |
2,249 |
|
|
$ |
2,047 |
|
|
$ |
2,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PMIERs Sufficiency Ratio(6) |
|
|
162 |
% |
|
|
162 |
% |
|
|
164 |
% |
|
|
|
|
|
|
165 |
% |
|
|
174 |
% |
|
|
166 |
% |
|
|
176 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Primary Loan Size (in thousands) |
|
$ |
268 |
|
|
$ |
265 |
|
|
$ |
262 |
|
|
|
|
|
|
$ |
259 |
|
|
$ |
255 |
|
|
$ |
251 |
|
|
$ |
246 |
|
|
|
|
|
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 balance for
loans the companys U.S. mortgage insurance subsidiaries insure. |
(2) |
Primary risk in-force represents risk on current loan balances as
provided by servicers, lenders and investors. |
(3) |
The ratio of an insurers general expenses to net earned premiums. In the business, general expenses
consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. |
(4) |
Certain states limit a private mortgage insurers risk in-force
to 25 times the total of the insurers policyholders surplus plus the statutory contingency reserve, commonly known as the risk to capital requirement. The current period risk to capital ratio is an estimate due to the timing
of the filing of statutory statements and is prepared consistent with the presentation of the statutory financial statements in the combined annual statement of the companys U.S. mortgage insurance subsidiaries. |
(5) |
Enact Mortgage Insurance Corporation (EMICO), the companys principal U.S. mortgage insurance subsidiary.
|
(6) |
The Private Mortgage Insurer Eligibility Requirements (PMIERs) sufficiency ratio is calculated as available
assets divided by required assets as defined within PMIERs. The current period PMIERs sufficiency ratio is an estimate due to the timing of the PMIERs filing. The PMIERs sufficiency ratios for the four quarters of 2022 did not take into
consideration the impact of restrictions previously imposed by the government-sponsored enterprises on EMICO. |
17
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Loss MetricsEnact Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Average Paid Claim (in thousands)(1) |
|
$ |
46.8 |
|
|
$ |
46.6 |
|
|
$ |
46.9 |
|
|
|
|
|
|
$ |
48.7 |
|
|
$ |
42.2 |
|
|
$ |
50.1 |
|
|
$ |
51.6 |
|
|
|
|
|
Average Reserve Per Primary Delinquency (in thousands)(2) |
|
$ |
23.9 |
|
|
$ |
25.0 |
|
|
$ |
24.8 |
|
|
|
|
|
|
$ |
24.0 |
|
|
$ |
25.2 |
|
|
$ |
27.0 |
|
|
$ |
26.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct primary case |
|
$ |
460 |
|
|
$ |
452 |
|
|
$ |
462 |
|
|
|
|
|
|
$ |
479 |
|
|
$ |
476 |
|
|
$ |
526 |
|
|
$ |
591 |
|
|
|
|
|
All other(3) |
|
|
41 |
|
|
|
38 |
|
|
|
40 |
|
|
|
|
|
|
|
40 |
|
|
|
34 |
|
|
|
33 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reserves |
|
$ |
501 |
|
|
$ |
490 |
|
|
$ |
502 |
|
|
|
|
|
|
$ |
519 |
|
|
$ |
510 |
|
|
$ |
559 |
|
|
$ |
625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Reserves |
|
$ |
490 |
|
|
$ |
502 |
|
|
$ |
519 |
|
|
$ |
519 |
|
|
$ |
510 |
|
|
$ |
559 |
|
|
$ |
625 |
|
|
$ |
641 |
|
|
$ |
641 |
|
Paid claims |
|
|
(7 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(21 |
) |
|
|
(9 |
) |
|
|
(9 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
|
|
(28 |
) |
Increase (decrease) in reserves |
|
|
18 |
|
|
|
(4 |
) |
|
|
(11 |
) |
|
|
3 |
|
|
|
18 |
|
|
|
(40 |
) |
|
|
(62 |
) |
|
|
(10 |
) |
|
|
(94 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Reserves |
|
$ |
501 |
|
|
$ |
490 |
|
|
$ |
502 |
|
|
$ |
501 |
|
|
$ |
519 |
|
|
$ |
510 |
|
|
$ |
559 |
|
|
$ |
625 |
|
|
$ |
519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Ratio(4) |
|
|
7 |
% |
|
|
(2 |
)% |
|
|
(5 |
)% |
|
|
|
% |
|
|
8 |
% |
|
|
(17 |
)% |
|
|
(26 |
)% |
|
|
(4 |
)% |
|
|
(10 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
Average paid claim in the third and fourth quarters of 2022 includes payments in relation to agreements on non-performing loans. |
(2) |
Direct primary case reserves divided by primary delinquency count. |
(3) |
Other includes loss adjustment expenses, pool, incurred but not reported and reinsurance reserves.
|
(4) |
The ratio of benefits and other changes in policy reserves to net earned premiums. |
18
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Delinquency MetricsEnact Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Primary Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary loans in-force |
|
|
977,832 |
|
|
|
973,280 |
|
|
|
965,544 |
|
|
|
|
|
|
|
960,306 |
|
|
|
949,052 |
|
|
|
946,891 |
|
|
|
941,689 |
|
|
|
|
|
Primary delinquent loans |
|
|
19,241 |
|
|
|
18,065 |
|
|
|
18,633 |
|
|
|
|
|
|
|
19,943 |
|
|
|
18,856 |
|
|
|
19,513 |
|
|
|
22,571 |
|
|
|
|
|
Primary delinquency rate |
|
|
1.97 |
% |
|
|
1.86 |
% |
|
|
1.93 |
% |
|
|
|
|
|
|
2.08 |
% |
|
|
1.99 |
% |
|
|
2.06 |
% |
|
|
2.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Number of Primary Delinquencies |
|
|
18,065 |
|
|
|
18,633 |
|
|
|
19,943 |
|
|
|
19,943 |
|
|
|
18,856 |
|
|
|
19,513 |
|
|
|
22,571 |
|
|
|
24,820 |
|
|
|
24,820 |
|
New delinquencies |
|
|
11,107 |
|
|
|
9,205 |
|
|
|
9,599 |
|
|
|
29,911 |
|
|
|
10,304 |
|
|
|
9,121 |
|
|
|
7,847 |
|
|
|
8,724 |
|
|
|
35,996 |
|
Delinquency cures |
|
|
(9,778 |
) |
|
|
(9,609 |
) |
|
|
(10,771 |
) |
|
|
(30,158 |
) |
|
|
(9,024 |
) |
|
|
(9,588 |
) |
|
|
(10,806 |
) |
|
|
(10,860 |
) |
|
|
(40,278 |
) |
Paid claims |
|
|
(147 |
) |
|
|
(156 |
) |
|
|
(126 |
) |
|
|
(429 |
) |
|
|
(190 |
) |
|
|
(187 |
) |
|
|
(90 |
) |
|
|
(107 |
) |
|
|
(574 |
) |
Rescissions and claim denials |
|
|
(6 |
) |
|
|
(8 |
) |
|
|
(12 |
) |
|
|
(26 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(6 |
) |
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Number of Primary Delinquencies |
|
|
19,241 |
|
|
|
18,065 |
|
|
|
18,633 |
|
|
|
19,241 |
|
|
|
19,943 |
|
|
|
18,856 |
|
|
|
19,513 |
|
|
|
22,571 |
|
|
|
19,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of Cures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported delinquent and cured-intraquarter |
|
|
1,877 |
|
|
|
1,661 |
|
|
|
2,016 |
|
|
|
|
|
|
|
1,489 |
|
|
|
1,598 |
|
|
|
1,306 |
|
|
|
1,581 |
|
|
|
|
|
Number of missed payments delinquent prior to cure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 payments or less |
|
|
4,792 |
|
|
|
4,516 |
|
|
|
5,238 |
|
|
|
|
|
|
|
4,179 |
|
|
|
3,719 |
|
|
|
4,037 |
|
|
|
3,902 |
|
|
|
|
|
4 - 11 payments |
|
|
2,265 |
|
|
|
2,448 |
|
|
|
2,431 |
|
|
|
|
|
|
|
2,001 |
|
|
|
2,279 |
|
|
|
2,484 |
|
|
|
2,315 |
|
|
|
|
|
12 payments or more |
|
|
844 |
|
|
|
984 |
|
|
|
1,086 |
|
|
|
|
|
|
|
1,355 |
|
|
|
1,992 |
|
|
|
2,979 |
|
|
|
3,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
9,778 |
|
|
|
9,609 |
|
|
|
10,771 |
|
|
|
|
|
|
|
9,024 |
|
|
|
9,588 |
|
|
|
10,806 |
|
|
|
10,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Delinquencies by Missed Payment Status |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 payments or less |
|
|
9,398 |
|
|
|
8,162 |
|
|
|
7,876 |
|
|
|
|
|
|
|
8,920 |
|
|
|
7,446 |
|
|
|
6,442 |
|
|
|
6,837 |
|
|
|
|
|
4 - 11 payments |
|
|
6,381 |
|
|
|
6,229 |
|
|
|
6,714 |
|
|
|
|
|
|
|
6,466 |
|
|
|
6,119 |
|
|
|
6,372 |
|
|
|
6,875 |
|
|
|
|
|
12 payments or more |
|
|
3,462 |
|
|
|
3,674 |
|
|
|
4,043 |
|
|
|
|
|
|
|
4,557 |
|
|
|
5,291 |
|
|
|
6,699 |
|
|
|
8,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Delinquencies |
|
|
19,241 |
|
|
|
18,065 |
|
|
|
18,633 |
|
|
|
|
|
|
|
19,943 |
|
|
|
18,856 |
|
|
|
19,513 |
|
|
|
22,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Primary Case Reserves(1) and Percentage
Reserved by Payment Status |
|
Direct Primary Case Reserves |
|
|
Risk In-Force |
|
|
Reserves as % of Risk In-Force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 payments or less in default |
|
$ |
80 |
|
|
$ |
568 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 - 11 payments in default |
|
|
192 |
|
|
|
426 |
|
|
|
45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 payments or more in default |
|
|
188 |
|
|
|
201 |
|
|
|
94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
460 |
|
|
$ |
1,195 |
|
|
|
38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Primary Case Reserves(1) and Percentage
Reserved by Payment Status |
|
Direct Primary Case Reserves |
|
|
Risk In-Force |
|
|
Reserves as % of Risk In-Force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 payments or less in default |
|
$ |
69 |
|
|
$ |
509 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 - 11 payments in default |
|
|
166 |
|
|
|
390 |
|
|
|
43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 payments or more in default |
|
|
244 |
|
|
|
248 |
|
|
|
98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
479 |
|
|
$ |
1,147 |
|
|
|
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Direct primary case reserves exclude loss adjustment expenses, pool, incurred but not reported and reinsurance
reserves. |
19
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Portfolio Quality MetricsEnact Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
Policy Year |
|
% of Direct Primary Case Reserves(1) |
|
|
Primary Insurance In-Force |
|
|
% of Total |
|
|
Primary Risk In-Force |
|
|
% of Total |
|
|
Delinquency Rate |
|
2008 and prior |
|
|
20 |
% |
|
$ |
5,859 |
|
|
|
2 |
% |
|
$ |
1,510 |
|
|
|
2 |
% |
|
|
8.67 |
% |
2009-2015 |
|
|
5 |
|
|
|
3,819 |
|
|
|
1 |
|
|
|
1,004 |
|
|
|
2 |
|
|
|
4.20 |
% |
2016 |
|
|
4 |
|
|
|
4,948 |
|
|
|
2 |
|
|
|
1,327 |
|
|
|
2 |
|
|
|
3.07 |
% |
2017 |
|
|
6 |
|
|
|
5,582 |
|
|
|
2 |
|
|
|
1,471 |
|
|
|
2 |
|
|
|
3.62 |
% |
2018 |
|
|
6 |
|
|
|
5,993 |
|
|
|
2 |
|
|
|
1,535 |
|
|
|
2 |
|
|
|
4.18 |
% |
2019 |
|
|
9 |
|
|
|
14,372 |
|
|
|
6 |
|
|
|
3,676 |
|
|
|
5 |
|
|
|
2.58 |
% |
2020 |
|
|
15 |
|
|
|
46,881 |
|
|
|
18 |
|
|
|
12,228 |
|
|
|
18 |
|
|
|
1.53 |
% |
2021 |
|
|
21 |
|
|
|
73,141 |
|
|
|
28 |
|
|
|
18,524 |
|
|
|
28 |
|
|
|
1.48 |
% |
2022 |
|
|
13 |
|
|
|
60,258 |
|
|
|
23 |
|
|
|
15,129 |
|
|
|
23 |
|
|
|
1.28 |
% |
2023 |
|
|
1 |
|
|
|
41,161 |
|
|
|
16 |
|
|
|
10,652 |
|
|
|
16 |
|
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
100 |
% |
|
$ |
262,014 |
|
|
|
100 |
% |
|
$ |
67,056 |
|
|
|
100 |
% |
|
|
1.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
|
Primary Risk In-Force |
|
|
Percent of Primary Risk In-Force |
|
|
Primary Risk In-Force |
|
|
Percent of Primary Risk In-Force |
|
|
Primary Risk In-Force |
|
|
Percent of Primary Risk In-Force |
|
Loan-to-value
ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95.01% and above |
|
$ |
12,595 |
|
|
|
19 |
% |
|
$ |
11,136 |
|
|
|
18 |
% |
|
$ |
10,809 |
|
|
|
18 |
% |
90.01% to 95.00% |
|
|
31,696 |
|
|
|
47 |
|
|
|
30,079 |
|
|
|
48 |
|
|
|
29,379 |
|
|
|
48 |
|
85.01% to 90.00% |
|
|
18,945 |
|
|
|
28 |
|
|
|
17,621 |
|
|
|
28 |
|
|
|
17,019 |
|
|
|
28 |
|
85.00% and below |
|
|
3,820 |
|
|
|
6 |
|
|
|
3,955 |
|
|
|
6 |
|
|
|
3,917 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
67,056 |
|
|
|
100 |
% |
|
$ |
62,791 |
|
|
|
100 |
% |
|
$ |
61,124 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
|
Primary Risk In-Force |
|
|
Percent of Primary Risk In-Force |
|
|
Primary Risk In-Force |
|
|
Percent of Primary Risk In-Force |
|
|
Primary Risk In-Force |
|
|
Percent of Primary Risk In-Force |
|
Credit Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over 760 |
|
$ |
28,014 |
|
|
|
42 |
% |
|
$ |
25,807 |
|
|
|
41 |
% |
|
$ |
24,965 |
|
|
|
41 |
% |
740 - 759 |
|
|
11,009 |
|
|
|
17 |
|
|
|
10,154 |
|
|
|
16 |
|
|
|
9,808 |
|
|
|
16 |
|
720 - 739 |
|
|
9,553 |
|
|
|
14 |
|
|
|
8,931 |
|
|
|
14 |
|
|
|
8,656 |
|
|
|
14 |
|
700 - 719 |
|
|
7,615 |
|
|
|
12 |
|
|
|
7,317 |
|
|
|
12 |
|
|
|
7,200 |
|
|
|
12 |
|
680 - 699 |
|
|
5,582 |
|
|
|
8 |
|
|
|
5,428 |
|
|
|
9 |
|
|
|
5,356 |
|
|
|
9 |
|
660 - 679(2) |
|
|
2,901 |
|
|
|
4 |
|
|
|
2,767 |
|
|
|
5 |
|
|
|
2,739 |
|
|
|
4 |
|
640 - 659 |
|
|
1,569 |
|
|
|
2 |
|
|
|
1,540 |
|
|
|
2 |
|
|
|
1,541 |
|
|
|
3 |
|
620 - 639 |
|
|
647 |
|
|
|
1 |
|
|
|
665 |
|
|
|
1 |
|
|
|
672 |
|
|
|
1 |
|
<620 |
|
|
166 |
|
|
|
|
|
|
|
182 |
|
|
|
|
|
|
|
187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
67,056 |
|
|
|
100 |
% |
|
$ |
62,791 |
|
|
|
100 |
% |
|
$ |
61,124 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Direct primary case reserves exclude loss adjustment expenses, pool, incurred but not reported and reinsurance
reserves. |
(2) |
Loans with unknown FICO scores are included in the 660-679 category.
|
20
Long-Term Care
Insurance Segment
21
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Adjusted Operating Income (Loss)Long-Term Care Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q(1)
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
621 |
|
|
$ |
611 |
|
|
$ |
616 |
|
|
$ |
1,848 |
|
|
$ |
639 |
|
|
$ |
637 |
|
|
$ |
617 |
|
|
$ |
607 |
|
|
$ |
2,500 |
|
Net investment income |
|
|
482 |
|
|
|
470 |
|
|
|
473 |
|
|
|
1,425 |
|
|
|
470 |
|
|
|
497 |
|
|
|
486 |
|
|
|
447 |
|
|
|
1,900 |
|
Net investment gains (losses) |
|
|
(21 |
) |
|
|
62 |
|
|
|
9 |
|
|
|
50 |
|
|
|
20 |
|
|
|
(47 |
) |
|
|
5 |
|
|
|
41 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,082 |
|
|
|
1,143 |
|
|
|
1,098 |
|
|
|
3,323 |
|
|
|
1,129 |
|
|
|
1,087 |
|
|
|
1,108 |
|
|
|
1,095 |
|
|
|
4,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
953 |
|
|
|
941 |
|
|
|
944 |
|
|
|
2,838 |
|
|
|
965 |
|
|
|
956 |
|
|
|
942 |
|
|
|
925 |
|
|
|
3,788 |
|
Liability remeasurement (gains) losses |
|
|
104 |
|
|
|
61 |
|
|
|
(32 |
) |
|
|
133 |
|
|
|
(255 |
) |
|
|
3 |
|
|
|
23 |
|
|
|
(88 |
) |
|
|
(317 |
) |
Acquisition and operating expenses, net of deferrals |
|
|
109 |
|
|
|
108 |
|
|
|
119 |
|
|
|
336 |
|
|
|
100 |
|
|
|
122 |
|
|
|
95 |
|
|
|
96 |
|
|
|
413 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
17 |
|
|
|
18 |
|
|
|
18 |
|
|
|
53 |
|
|
|
18 |
|
|
|
19 |
|
|
|
18 |
|
|
|
19 |
|
|
|
74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
1,183 |
|
|
|
1,128 |
|
|
|
1,049 |
|
|
|
3,360 |
|
|
|
828 |
|
|
|
1,100 |
|
|
|
1,078 |
|
|
|
952 |
|
|
|
3,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(101 |
) |
|
|
15 |
|
|
|
49 |
|
|
|
(37 |
) |
|
|
301 |
|
|
|
(13 |
) |
|
|
30 |
|
|
|
143 |
|
|
|
461 |
|
Provision (benefit) for income taxes |
|
|
(13 |
) |
|
|
10 |
|
|
|
18 |
|
|
|
15 |
|
|
|
79 |
|
|
|
(1 |
) |
|
|
9 |
|
|
|
38 |
|
|
|
125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(88 |
) |
|
|
5 |
|
|
|
31 |
|
|
|
(52 |
) |
|
|
222 |
|
|
|
(12 |
) |
|
|
21 |
|
|
|
105 |
|
|
|
336 |
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
21 |
|
|
|
(62 |
) |
|
|
(9 |
) |
|
|
(50 |
) |
|
|
(20 |
) |
|
|
47 |
|
|
|
(5 |
) |
|
|
(41 |
) |
|
|
(19 |
) |
Expenses related to restructuring |
|
|
|
|
|
|
1 |
|
|
|
(1 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
(1 |
) |
Taxes on adjustments |
|
|
(4 |
) |
|
|
13 |
|
|
|
2 |
|
|
|
11 |
|
|
|
4 |
|
|
|
(9 |
) |
|
|
|
|
|
|
9 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME (LOSS) |
|
$ |
(71 |
) |
|
$ |
(43 |
) |
|
$ |
23 |
|
|
$ |
(91 |
) |
|
$ |
204 |
|
|
$ |
26 |
|
|
$ |
17 |
|
|
$ |
73 |
|
|
$ |
320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability remeasurement (gains) losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow assumption updates |
|
$ |
(6 |
) |
|
$ |
(24 |
) |
|
$ |
21 |
|
|
$ |
(9 |
) |
|
$ |
(303 |
) |
|
$ |
(10 |
) |
|
$ |
(20 |
) |
|
$ |
(2 |
) |
|
$ |
(335 |
) |
Actual to expected experience |
|
|
110 |
|
|
|
85 |
|
|
|
(53 |
) |
|
|
142 |
|
|
|
48 |
|
|
|
13 |
|
|
|
43 |
|
|
|
(86 |
) |
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
104 |
|
|
$ |
61 |
|
|
$ |
(32 |
) |
|
$ |
133 |
|
|
$ |
(255 |
) |
|
$ |
3 |
|
|
$ |
23 |
|
|
$ |
(88 |
) |
|
$ |
(317 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of the liability remeasurement (gains) losses to beginning reserves(2) |
|
|
0.25 |
% |
|
|
0.15 |
% |
|
|
(0.08 |
)% |
|
|
0.32 |
% |
|
|
(0.62 |
)% |
|
|
|
% |
|
|
0.06 |
% |
|
|
(0.22 |
)% |
|
|
(0.78 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
In the fourth quarter of 2022, the liability remeasurement gain of $255 million in the companys
long-term care insurance business reflected favorable assumption updates of $303 million, largely from an update to legal settlement elections attributable to the inclusion of a second legal settlement and the resulting expected reserve
reduction. This settlement, comprised of PCS I and PCS II policies, represents approximately 15% of the overall block and impacts older unprofitable capped cohorts. While a favorable assumption impact was recognized in the fourth quarter of 2022,
differences between actual experience and expectations will flow through earnings in subsequent periods. The companys long-term care insurance business also updated its interest rate assumptions to reflect the impact of the higher interest
rate environment. |
(2) |
The ratio of the liability remeasurement (gains) losses to beginning reserves is calculated by dividing the
liability remeasurement (gains) losses by the beginning liability for future policy benefits at the original discount rate as of each applicable quarter. |
22
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Statutory Impact of In-Force Rate
ActionsLong-Term Care Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Impact of in-force rate actions on pre-tax statutory earnings(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums, premium tax, commissions and other expenses, net(2) |
|
$ |
231 |
|
|
$ |
224 |
|
|
$ |
219 |
|
|
$ |
674 |
|
|
$ |
224 |
|
|
$ |
220 |
|
|
$ |
207 |
|
|
$ |
192 |
|
|
$ |
843 |
|
Reserve changes(2) |
|
|
99 |
|
|
|
104 |
|
|
|
94 |
|
|
|
297 |
|
|
|
124 |
|
|
|
120 |
|
|
|
113 |
|
|
|
132 |
|
|
|
489 |
|
|
|
|
|
|
|
|
|
|
|
Settlement impacts - reserve changes |
|
|
169 |
|
|
|
97 |
|
|
|
93 |
|
|
|
359 |
|
|
|
78 |
|
|
|
9 |
|
|
|
19 |
|
|
|
148 |
|
|
|
254 |
|
Settlement impacts - litigation expenses and settlement payments |
|
|
(102 |
) |
|
|
(54 |
) |
|
|
(56 |
) |
|
|
(212 |
) |
|
|
(45 |
) |
|
|
(10 |
) |
|
|
(6 |
) |
|
|
(43 |
) |
|
|
(104 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement impacts, net |
|
|
67 |
|
|
|
43 |
|
|
|
37 |
|
|
|
147 |
|
|
|
33 |
|
|
|
(1 |
) |
|
|
13 |
|
|
|
105 |
|
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory earnings from in-force rate actions |
|
$ |
397 |
|
|
$ |
371 |
|
|
$ |
350 |
|
|
$ |
1,118 |
|
|
$ |
381 |
|
|
$ |
339 |
|
|
$ |
333 |
|
|
$ |
429 |
|
|
$ |
1,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes all implemented in-force rate actions since 2012.
|
(2) |
Earned premium and reserve change estimates for statutory earnings reflect certain simplifying assumptions
that may vary materially from actual historical results, including but not limited to, a uniform rate of coinsurance and premium taxes in addition to consistent policyholder behavior over time. Actual behavior may differ significantly from these
assumptions and these impacts exclude reserve updates. |
23
Life and
Annuities Segment
24
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Adjusted Operating Income (Loss)Life and Annuities Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
48 |
|
|
$ |
50 |
|
|
$ |
62 |
|
|
$ |
160 |
|
|
$ |
45 |
|
|
$ |
55 |
|
|
$ |
60 |
|
|
$ |
74 |
|
|
$ |
234 |
|
Net investment income |
|
|
261 |
|
|
|
261 |
|
|
|
264 |
|
|
|
786 |
|
|
|
268 |
|
|
|
271 |
|
|
|
265 |
|
|
|
279 |
|
|
|
1,083 |
|
Net investment gains (losses) |
|
|
(18 |
) |
|
|
(7 |
) |
|
|
(10 |
) |
|
|
(35 |
) |
|
|
(3 |
) |
|
|
(15 |
) |
|
|
|
|
|
|
14 |
|
|
|
(4 |
) |
Policy fees and other income |
|
|
158 |
|
|
|
165 |
|
|
|
163 |
|
|
|
486 |
|
|
|
167 |
|
|
|
169 |
|
|
|
164 |
|
|
|
169 |
|
|
|
669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
449 |
|
|
|
469 |
|
|
|
479 |
|
|
|
1,397 |
|
|
|
477 |
|
|
|
480 |
|
|
|
489 |
|
|
|
536 |
|
|
|
1,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
229 |
|
|
|
240 |
|
|
|
246 |
|
|
|
715 |
|
|
|
226 |
|
|
|
247 |
|
|
|
(108 |
) |
|
|
255 |
|
|
|
620 |
|
Liability remeasurement (gains) losses |
|
|
12 |
|
|
|
9 |
|
|
|
17 |
|
|
|
38 |
|
|
|
(12 |
) |
|
|
14 |
|
|
|
1 |
|
|
|
24 |
|
|
|
27 |
|
Changes in fair value of market risk benefits and associated hedges |
|
|
(24 |
) |
|
|
(19 |
) |
|
|
17 |
|
|
|
(26 |
) |
|
|
(56 |
) |
|
|
(27 |
) |
|
|
20 |
|
|
|
(41 |
) |
|
|
(104 |
) |
Interest credited |
|
|
127 |
|
|
|
126 |
|
|
|
126 |
|
|
|
379 |
|
|
|
125 |
|
|
|
128 |
|
|
|
126 |
|
|
|
125 |
|
|
|
504 |
|
Acquisition and operating expenses, net of deferrals |
|
|
54 |
|
|
|
51 |
|
|
|
53 |
|
|
|
158 |
|
|
|
54 |
|
|
|
57 |
|
|
|
416 |
|
|
|
77 |
|
|
|
604 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
45 |
|
|
|
44 |
|
|
|
51 |
|
|
|
140 |
|
|
|
54 |
|
|
|
57 |
|
|
|
63 |
|
|
|
66 |
|
|
|
240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
443 |
|
|
|
451 |
|
|
|
510 |
|
|
|
1,404 |
|
|
|
391 |
|
|
|
476 |
|
|
|
518 |
|
|
|
506 |
|
|
|
1,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
6 |
|
|
|
18 |
|
|
|
(31 |
) |
|
|
(7 |
) |
|
|
86 |
|
|
|
4 |
|
|
|
(29 |
) |
|
|
30 |
|
|
|
91 |
|
Provision (benefit) for income taxes |
|
|
1 |
|
|
|
3 |
|
|
|
(7 |
) |
|
|
(3 |
) |
|
|
17 |
|
|
|
|
|
|
|
(7 |
) |
|
|
6 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
5 |
|
|
|
15 |
|
|
|
(24 |
) |
|
|
(4 |
) |
|
|
69 |
|
|
|
4 |
|
|
|
(22 |
) |
|
|
24 |
|
|
|
75 |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
18 |
|
|
|
7 |
|
|
|
10 |
|
|
|
35 |
|
|
|
3 |
|
|
|
15 |
|
|
|
|
|
|
|
(14 |
) |
|
|
4 |
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges(1) |
|
|
(26 |
) |
|
|
(23 |
) |
|
|
14 |
|
|
|
(35 |
) |
|
|
(64 |
) |
|
|
(32 |
) |
|
|
8 |
|
|
|
(54 |
) |
|
|
(142 |
) |
Expenses related to restructuring |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Pension plan termination costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
Taxes on adjustments |
|
|
|
|
|
|
3 |
|
|
|
(4 |
) |
|
|
(1 |
) |
|
|
14 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
14 |
|
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME (LOSS) |
|
$ |
(3 |
) |
|
$ |
2 |
|
|
$ |
(4 |
) |
|
$ |
(5 |
) |
|
$ |
23 |
|
|
$ |
(6 |
) |
|
$ |
(15 |
) |
|
$ |
(30 |
) |
|
$ |
(28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Changes in fair value of market risk benefits
and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments as reconciled below: |
|
Changes in fair value of market risk benefits and associated hedges |
|
$ |
(24 |
) |
|
$ |
(19 |
) |
|
$ |
17 |
|
|
$ |
(26 |
) |
|
$ |
(56 |
) |
|
$ |
(27 |
) |
|
$ |
20 |
|
|
$ |
(41 |
) |
|
$ |
(104 |
) |
Adjustment for changes in reserves, attributed fees and benefit payments |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(8 |
) |
|
|
(5 |
) |
|
|
(12 |
) |
|
|
(13 |
) |
|
|
(38 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges |
|
$ |
(26 |
) |
|
$ |
(23 |
) |
|
$ |
14 |
|
|
$ |
(35 |
) |
|
$ |
(64 |
) |
|
$ |
(32 |
) |
|
$ |
8 |
|
|
$ |
(54 |
) |
|
$ |
(142 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Adjusted Operating Income (Loss)Life and Annuities SegmentLife Insurance
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
48 |
|
|
$ |
50 |
|
|
$ |
62 |
|
|
$ |
160 |
|
|
$ |
45 |
|
|
$ |
55 |
|
|
$ |
60 |
|
|
$ |
74 |
|
|
$ |
234 |
|
Net investment income |
|
|
169 |
|
|
|
165 |
|
|
|
164 |
|
|
|
498 |
|
|
|
167 |
|
|
|
166 |
|
|
|
164 |
|
|
|
164 |
|
|
|
661 |
|
Net investment gains (losses) |
|
|
|
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
2 |
|
|
|
9 |
|
|
|
5 |
|
Policy fees and other income |
|
|
130 |
|
|
|
136 |
|
|
|
134 |
|
|
|
400 |
|
|
|
138 |
|
|
|
138 |
|
|
|
133 |
|
|
|
134 |
|
|
|
543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
347 |
|
|
|
350 |
|
|
|
358 |
|
|
|
1,055 |
|
|
|
351 |
|
|
|
352 |
|
|
|
359 |
|
|
|
381 |
|
|
|
1,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
184 |
|
|
|
197 |
|
|
|
199 |
|
|
|
580 |
|
|
|
181 |
|
|
|
197 |
|
|
|
217 |
|
|
|
203 |
|
|
|
798 |
|
Liability remeasurement (gains) losses |
|
|
22 |
|
|
|
7 |
|
|
|
18 |
|
|
|
47 |
|
|
|
(10 |
) |
|
|
16 |
|
|
|
4 |
|
|
|
22 |
|
|
|
32 |
|
Interest credited |
|
|
99 |
|
|
|
98 |
|
|
|
98 |
|
|
|
295 |
|
|
|
97 |
|
|
|
98 |
|
|
|
96 |
|
|
|
94 |
|
|
|
385 |
|
Acquisition and operating expenses, net of deferrals |
|
|
36 |
|
|
|
34 |
|
|
|
36 |
|
|
|
106 |
|
|
|
39 |
|
|
|
40 |
|
|
|
32 |
|
|
|
56 |
|
|
|
167 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
38 |
|
|
|
36 |
|
|
|
44 |
|
|
|
118 |
|
|
|
45 |
|
|
|
49 |
|
|
|
55 |
|
|
|
57 |
|
|
|
206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
379 |
|
|
|
372 |
|
|
|
395 |
|
|
|
1,146 |
|
|
|
352 |
|
|
|
400 |
|
|
|
404 |
|
|
|
432 |
|
|
|
1,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(32 |
) |
|
|
(22 |
) |
|
|
(37 |
) |
|
|
(91 |
) |
|
|
(1 |
) |
|
|
(48 |
) |
|
|
(45 |
) |
|
|
(51 |
) |
|
|
(145 |
) |
Benefit for income taxes |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
(8 |
) |
|
|
(20 |
) |
|
|
(1 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(11 |
) |
|
|
(32 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(25 |
) |
|
|
(17 |
) |
|
|
(29 |
) |
|
|
(71 |
) |
|
|
|
|
|
|
(38 |
) |
|
|
(35 |
) |
|
|
(40 |
) |
|
|
(113 |
) |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
|
(1 |
) |
|
|
7 |
|
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(5 |
) |
Expenses related to restructuring |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Pension plan termination costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
Taxes on adjustments |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME (LOSS) |
|
$ |
(25 |
) |
|
$ |
(17 |
) |
|
$ |
(27 |
) |
|
$ |
(69 |
) |
|
$ |
1 |
|
|
$ |
(28 |
) |
|
$ |
(37 |
) |
|
$ |
(47 |
) |
|
$ |
(111 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Adjusted Operating IncomeLife and Annuities SegmentFixed Annuities
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
85 |
|
|
$ |
87 |
|
|
$ |
91 |
|
|
$ |
263 |
|
|
$ |
93 |
|
|
$ |
96 |
|
|
$ |
93 |
|
|
$ |
108 |
|
|
$ |
390 |
|
Net investment gains (losses) |
|
|
(18 |
) |
|
|
(5 |
) |
|
|
(8 |
) |
|
|
(31 |
) |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
(2 |
) |
|
|
5 |
|
|
|
(8 |
) |
Policy fees and other income |
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
5 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
68 |
|
|
|
84 |
|
|
|
85 |
|
|
|
237 |
|
|
|
90 |
|
|
|
91 |
|
|
|
93 |
|
|
|
115 |
|
|
|
389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves(1)
|
|
|
36 |
|
|
|
35 |
|
|
|
39 |
|
|
|
110 |
|
|
|
37 |
|
|
|
42 |
|
|
|
(332 |
) |
|
|
46 |
|
|
|
(207 |
) |
Liability remeasurement (gains) losses |
|
|
(10 |
) |
|
|
2 |
|
|
|
(1 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
2 |
|
|
|
(5 |
) |
Changes in fair value of market risk benefits and associated hedges |
|
|
(18 |
) |
|
|
(4 |
) |
|
|
8 |
|
|
|
(14 |
) |
|
|
|
|
|
|
(15 |
) |
|
|
(12 |
) |
|
|
(13 |
) |
|
|
(40 |
) |
Interest credited |
|
|
26 |
|
|
|
27 |
|
|
|
27 |
|
|
|
80 |
|
|
|
27 |
|
|
|
28 |
|
|
|
29 |
|
|
|
30 |
|
|
|
114 |
|
Acquisition and operating expenses, net of
deferrals(1) |
|
|
9 |
|
|
|
7 |
|
|
|
8 |
|
|
|
24 |
|
|
|
7 |
|
|
|
7 |
|
|
|
372 |
|
|
|
9 |
|
|
|
395 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
3 |
|
|
|
4 |
|
|
|
3 |
|
|
|
10 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
46 |
|
|
|
71 |
|
|
|
84 |
|
|
|
201 |
|
|
|
73 |
|
|
|
64 |
|
|
|
58 |
|
|
|
78 |
|
|
|
273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
22 |
|
|
|
13 |
|
|
|
1 |
|
|
|
36 |
|
|
|
17 |
|
|
|
27 |
|
|
|
35 |
|
|
|
37 |
|
|
|
116 |
|
Provision for income taxes |
|
|
5 |
|
|
|
3 |
|
|
|
|
|
|
|
8 |
|
|
|
4 |
|
|
|
6 |
|
|
|
7 |
|
|
|
8 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
17 |
|
|
|
10 |
|
|
|
1 |
|
|
|
28 |
|
|
|
13 |
|
|
|
21 |
|
|
|
28 |
|
|
|
29 |
|
|
|
91 |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
18 |
|
|
|
5 |
|
|
|
8 |
|
|
|
31 |
|
|
|
4 |
|
|
|
7 |
|
|
|
2 |
|
|
|
(5 |
) |
|
|
8 |
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges(2) |
|
|
(18 |
) |
|
|
(5 |
) |
|
|
8 |
|
|
|
(15 |
) |
|
|
(3 |
) |
|
|
(14 |
) |
|
|
(13 |
) |
|
|
(15 |
) |
|
|
(45 |
) |
Taxes on adjustments |
|
|
|
|
|
|
|
|
|
|
(3 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
17 |
|
|
$ |
10 |
|
|
$ |
14 |
|
|
$ |
41 |
|
|
$ |
14 |
|
|
$ |
15 |
|
|
$ |
20 |
|
|
$ |
13 |
|
|
$ |
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In the second quarter of 2022, the recapture of
certain single premium immediate annuity contracts by a third party reduced benefits and other changes in policy reserves by $372 million and increased acquisition and operating expenses, net of deferrals, by $365 million.
(2) Changes in fair value of market risk benefits
and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments as reconciled below: |
|
Changes in fair value of market risk benefits and associated hedges |
|
$ |
(18 |
) |
|
$ |
(4) |
|
|
$ |
8 |
|
|
$ |
(14 |
) |
|
$ |
|
|
|
$ |
(15 |
) |
|
$ |
(12 |
) |
|
$ |
(13 |
) |
|
$ |
(40 |
) |
Adjustment for changes in reserves, attributed fees and benefit payments |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
(3 |
) |
|
|
1 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges |
|
$ |
(18 |
) |
|
$ |
(5 |
) |
|
$ |
8 |
|
|
$ |
(15 |
) |
|
$ |
(3 |
) |
|
$ |
(14 |
) |
|
$ |
(13 |
) |
|
$ |
(15 |
) |
|
$ |
(45 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Adjusted Operating IncomeLife and Annuities SegmentVariable Annuities
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
7 |
|
|
$ |
9 |
|
|
$ |
9 |
|
|
$ |
25 |
|
|
$ |
8 |
|
|
$ |
9 |
|
|
$ |
8 |
|
|
$ |
7 |
|
|
$ |
32 |
|
Net investment gains (losses) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Policy fees and other income |
|
|
27 |
|
|
|
27 |
|
|
|
27 |
|
|
|
81 |
|
|
|
28 |
|
|
|
29 |
|
|
|
29 |
|
|
|
33 |
|
|
|
119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
34 |
|
|
|
35 |
|
|
|
36 |
|
|
|
105 |
|
|
|
36 |
|
|
|
37 |
|
|
|
37 |
|
|
|
40 |
|
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
9 |
|
|
|
8 |
|
|
|
8 |
|
|
|
25 |
|
|
|
8 |
|
|
|
8 |
|
|
|
7 |
|
|
|
6 |
|
|
|
29 |
|
Changes in fair value of market risk benefits and associated hedges |
|
|
(6 |
) |
|
|
(15 |
) |
|
|
9 |
|
|
|
(12 |
) |
|
|
(56 |
) |
|
|
(12 |
) |
|
|
32 |
|
|
|
(28 |
) |
|
|
(64 |
) |
Interest credited |
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
Acquisition and operating expenses, net of deferrals |
|
|
9 |
|
|
|
10 |
|
|
|
9 |
|
|
|
28 |
|
|
|
8 |
|
|
|
10 |
|
|
|
12 |
|
|
|
12 |
|
|
|
42 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
12 |
|
|
|
5 |
|
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
18 |
|
|
|
8 |
|
|
|
31 |
|
|
|
57 |
|
|
|
(34 |
) |
|
|
12 |
|
|
|
56 |
|
|
|
(4 |
) |
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
16 |
|
|
|
27 |
|
|
|
5 |
|
|
|
48 |
|
|
|
70 |
|
|
|
25 |
|
|
|
(19 |
) |
|
|
44 |
|
|
|
120 |
|
Provision (benefit) for income taxes |
|
|
3 |
|
|
|
5 |
|
|
|
1 |
|
|
|
9 |
|
|
|
14 |
|
|
|
4 |
|
|
|
(4 |
) |
|
|
9 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
13 |
|
|
|
22 |
|
|
|
4 |
|
|
|
39 |
|
|
|
56 |
|
|
|
21 |
|
|
|
(15 |
) |
|
|
35 |
|
|
|
97 |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges(1) |
|
|
(8 |
) |
|
|
(18 |
) |
|
|
6 |
|
|
|
(20 |
) |
|
|
(61 |
) |
|
|
(18 |
) |
|
|
21 |
|
|
|
(39 |
) |
|
|
(97 |
) |
Taxes on adjustments |
|
|
|
|
|
|
4 |
|
|
|
(1 |
) |
|
|
3 |
|
|
|
13 |
|
|
|
3 |
|
|
|
(4 |
) |
|
|
8 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME |
|
$ |
5 |
|
|
$ |
9 |
|
|
$ |
9 |
|
|
$ |
23 |
|
|
$ |
8 |
|
|
$ |
7 |
|
|
$ |
2 |
|
|
$ |
4 |
|
|
$ |
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Changes in fair value of market risk benefits
and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments as reconciled below: |
|
Changes in fair value of market risk benefits and associated hedges |
|
$ |
(6 |
) |
|
$ |
(15 |
) |
|
$ |
9 |
|
|
$ |
(12 |
) |
|
$ |
(56 |
) |
|
$ |
(12 |
) |
|
$ |
32 |
|
|
$ |
(28 |
) |
|
$ |
(64 |
) |
Adjustment for changes in reserves, attributed fees and benefit payments |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(8 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(11 |
) |
|
|
(11 |
) |
|
|
(33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in fair value of market risk benefits attributable to interest rates, equity markets and
associated hedges |
|
$ |
(8 |
) |
|
$ |
(18 |
) |
|
$ |
6 |
|
|
$ |
(20 |
) |
|
$ |
(61 |
) |
|
$ |
(18 |
) |
|
$ |
21 |
|
|
$ |
(39 |
) |
|
$ |
(97 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28
Corporate and
Other
29
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Adjusted Operating LossCorporate and Other(1)
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
3 |
|
|
$ |
2 |
|
|
$ |
2 |
|
|
$ |
7 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
6 |
|
Net investment income |
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
11 |
|
|
|
4 |
|
|
|
1 |
|
|
|
|
|
|
|
3 |
|
|
|
8 |
|
Net investment gains (losses) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(10 |
) |
|
|
(17 |
) |
|
|
(21 |
) |
|
|
4 |
|
|
|
15 |
|
|
|
(13 |
) |
|
|
(15 |
) |
Policy fees and other income |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1 |
|
|
|
3 |
|
|
|
(4 |
) |
|
|
|
|
|
|
(16 |
) |
|
|
6 |
|
|
|
17 |
|
|
|
(8 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(11 |
) |
Acquisition and operating expenses, net of deferrals |
|
|
13 |
|
|
|
15 |
|
|
|
16 |
|
|
|
44 |
|
|
|
11 |
|
|
|
11 |
|
|
|
10 |
|
|
|
9 |
|
|
|
41 |
|
Interest expense |
|
|
17 |
|
|
|
16 |
|
|
|
16 |
|
|
|
49 |
|
|
|
14 |
|
|
|
14 |
|
|
|
13 |
|
|
|
13 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
29 |
|
|
|
29 |
|
|
|
29 |
|
|
|
87 |
|
|
|
25 |
|
|
|
21 |
|
|
|
19 |
|
|
|
19 |
|
|
|
84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(28 |
) |
|
|
(26 |
) |
|
|
(33 |
) |
|
|
(87 |
) |
|
|
(41 |
) |
|
|
(15 |
) |
|
|
(2 |
) |
|
|
(27 |
) |
|
|
(85 |
) |
Provision (benefit) for income taxes |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(16 |
) |
|
|
2 |
|
|
|
3 |
|
|
|
(5 |
) |
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(22 |
) |
|
|
(22 |
) |
|
|
(28 |
) |
|
|
(72 |
) |
|
|
(25 |
) |
|
|
(17 |
) |
|
|
(5 |
) |
|
|
(22 |
) |
|
|
(69 |
) |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses |
|
|
4 |
|
|
|
3 |
|
|
|
10 |
|
|
|
17 |
|
|
|
21 |
|
|
|
(4 |
) |
|
|
(15 |
) |
|
|
13 |
|
|
|
15 |
|
(Gains) losses on early extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
3 |
|
|
|
1 |
|
|
|
3 |
|
|
|
6 |
|
Expenses related to restructuring |
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
4 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
Taxes on adjustments |
|
|
|
|
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
3 |
|
|
|
(3 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING LOSS |
|
$ |
(18 |
) |
|
$ |
(20 |
) |
|
$ |
(18 |
) |
|
$ |
(56 |
) |
|
$ |
(9 |
) |
|
$ |
(18 |
) |
|
$ |
(16 |
) |
|
$ |
(9 |
) |
|
$ |
(52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes inter-segment eliminations and the results of other businesses, including start-up growth initiatives and certain international businesses, that are managed outside the operating segments. |
30
Additional Financial Data
31
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Investments Summary
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
|
Carrying Amount |
|
|
% of Total |
|
|
Carrying Amount |
|
|
% of Total |
|
|
Carrying Amount |
|
|
% of Total |
|
|
Carrying Amount |
|
|
% of Total |
|
|
Carrying Amount |
|
|
% of Total |
|
Composition of Investment Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public fixed maturity securities |
|
$ |
25,148 |
|
|
|
42 |
% |
|
$ |
26,413 |
|
|
|
43 |
% |
|
$ |
26,894 |
|
|
|
44 |
% |
|
$ |
26,047 |
|
|
|
43 |
% |
|
$ |
25,550 |
|
|
|
43 |
% |
Private fixed maturity securities |
|
|
10,432 |
|
|
|
17 |
|
|
|
10,808 |
|
|
|
18 |
|
|
|
11,182 |
|
|
|
18 |
|
|
|
11,126 |
|
|
|
19 |
|
|
|
10,997 |
|
|
|
18 |
|
Residential mortgage-backed
securities(1) |
|
|
891 |
|
|
|
2 |
|
|
|
935 |
|
|
|
1 |
|
|
|
986 |
|
|
|
2 |
|
|
|
995 |
|
|
|
2 |
|
|
|
1,069 |
|
|
|
2 |
|
Commercial mortgage-backed securities |
|
|
1,495 |
|
|
|
3 |
|
|
|
1,674 |
|
|
|
3 |
|
|
|
1,814 |
|
|
|
3 |
|
|
|
1,900 |
|
|
|
3 |
|
|
|
1,980 |
|
|
|
3 |
|
Other asset-backed securities |
|
|
2,163 |
|
|
|
4 |
|
|
|
2,164 |
|
|
|
4 |
|
|
|
2,113 |
|
|
|
3 |
|
|
|
2,117 |
|
|
|
3 |
|
|
|
2,139 |
|
|
|
4 |
|
State and political subdivisions |
|
|
2,164 |
|
|
|
4 |
|
|
|
2,343 |
|
|
|
4 |
|
|
|
2,403 |
|
|
|
4 |
|
|
|
2,399 |
|
|
|
4 |
|
|
|
2,532 |
|
|
|
4 |
|
Non-investment grade fixed maturity
securities |
|
|
1,675 |
|
|
|
3 |
|
|
|
1,733 |
|
|
|
3 |
|
|
|
1,989 |
|
|
|
3 |
|
|
|
1,999 |
|
|
|
3 |
|
|
|
1,948 |
|
|
|
3 |
|
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stocks and mutual funds |
|
|
316 |
|
|
|
1 |
|
|
|
326 |
|
|
|
1 |
|
|
|
306 |
|
|
|
1 |
|
|
|
258 |
|
|
|
1 |
|
|
|
204 |
|
|
|
|
|
Preferred stocks |
|
|
47 |
|
|
|
|
|
|
|
52 |
|
|
|
|
|
|
|
58 |
|
|
|
|
|
|
|
61 |
|
|
|
|
|
|
|
70 |
|
|
|
|
|
Commercial mortgage loans, net |
|
|
6,793 |
|
|
|
11 |
|
|
|
6,852 |
|
|
|
11 |
|
|
|
6,891 |
|
|
|
11 |
|
|
|
7,010 |
|
|
|
11 |
|
|
|
7,063 |
|
|
|
11 |
|
Policy loans |
|
|
2,233 |
|
|
|
4 |
|
|
|
2,270 |
|
|
|
4 |
|
|
|
2,133 |
|
|
|
3 |
|
|
|
2,139 |
|
|
|
3 |
|
|
|
2,153 |
|
|
|
4 |
|
Limited partnerships |
|
|
2,699 |
|
|
|
5 |
|
|
|
2,585 |
|
|
|
4 |
|
|
|
2,456 |
|
|
|
4 |
|
|
|
2,331 |
|
|
|
4 |
|
|
|
2,195 |
|
|
|
4 |
|
Cash, cash equivalents, restricted cash and short-term investments |
|
|
2,023 |
|
|
|
3 |
|
|
|
2,196 |
|
|
|
3 |
|
|
|
1,759 |
|
|
|
3 |
|
|
|
1,802 |
|
|
|
3 |
|
|
|
1,563 |
|
|
|
3 |
|
Other invested assets: |
|
Derivatives: |
|
|
12 |
|
|
|
|
|
|
|
30 |
|
|
|
|
|
|
|
42 |
|
|
|
|
|
|
|
24 |
|
|
|
|
|
|
|
25 |
|
|
|
|
|
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency swaps |
|
|
15 |
|
|
|
|
|
|
|
16 |
|
|
|
|
|
|
|
17 |
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
32 |
|
|
|
|
|
|
|
Equity index options |
|
|
11 |
|
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
38 |
|
|
|
|
|
|
|
Other |
|
|
577 |
|
|
|
1 |
|
|
|
564 |
|
|
|
1 |
|
|
|
541 |
|
|
|
1 |
|
|
|
513 |
|
|
|
1 |
|
|
|
493 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total invested assets and cash |
|
$ |
58,694 |
|
|
|
100 |
% |
|
$ |
60,976 |
|
|
|
100 |
% |
|
$ |
61,594 |
|
|
|
100 |
% |
|
$ |
60,747 |
|
|
|
100 |
% |
|
$ |
60,051 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Fixed Maturity SecuritiesCredit
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSRO(2) Designation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA |
|
$ |
2,533 |
|
|
|
8 |
% |
|
$ |
5,936 |
|
|
|
19 |
% |
|
$ |
6,112 |
|
|
|
19 |
% |
|
$ |
6,067 |
|
|
|
19 |
% |
|
$ |
6,174 |
|
|
|
20 |
% |
AA |
|
|
5,650 |
|
|
|
19 |
|
|
|
2,896 |
|
|
|
9 |
|
|
|
2,872 |
|
|
|
9 |
|
|
|
2,859 |
|
|
|
9 |
|
|
|
2,958 |
|
|
|
9 |
|
A |
|
|
8,359 |
|
|
|
28 |
|
|
|
8,597 |
|
|
|
27 |
|
|
|
8,699 |
|
|
|
27 |
|
|
|
8,398 |
|
|
|
27 |
|
|
|
8,278 |
|
|
|
26 |
|
BBB |
|
|
12,923 |
|
|
|
43 |
|
|
|
13,649 |
|
|
|
43 |
|
|
|
14,056 |
|
|
|
43 |
|
|
|
13,623 |
|
|
|
43 |
|
|
|
13,322 |
|
|
|
43 |
|
BB |
|
|
519 |
|
|
|
2 |
|
|
|
564 |
|
|
|
2 |
|
|
|
786 |
|
|
|
2 |
|
|
|
776 |
|
|
|
2 |
|
|
|
780 |
|
|
|
2 |
|
B |
|
|
20 |
|
|
|
|
|
|
|
23 |
|
|
|
|
|
|
|
41 |
|
|
|
|
|
|
|
34 |
|
|
|
|
|
|
|
33 |
|
|
|
|
|
CCC and lower |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total public fixed maturity securities |
|
$ |
30,004 |
|
|
|
100 |
% |
|
$ |
31,665 |
|
|
|
100 |
% |
|
$ |
32,566 |
|
|
|
100 |
% |
|
$ |
31,757 |
|
|
|
100 |
% |
|
$ |
31,545 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Fixed Maturity SecuritiesCredit
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSRO(2) Designation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA |
|
$ |
867 |
|
|
|
6 |
% |
|
$ |
863 |
|
|
|
6 |
% |
|
$ |
860 |
|
|
|
6 |
% |
|
$ |
825 |
|
|
|
6 |
% |
|
$ |
830 |
|
|
|
6 |
% |
AA |
|
|
1,352 |
|
|
|
10 |
|
|
|
1,416 |
|
|
|
10 |
|
|
|
1,422 |
|
|
|
10 |
|
|
|
1,421 |
|
|
|
10 |
|
|
|
1,407 |
|
|
|
10 |
|
A |
|
|
3,960 |
|
|
|
28 |
|
|
|
4,135 |
|
|
|
29 |
|
|
|
4,217 |
|
|
|
28 |
|
|
|
4,170 |
|
|
|
28 |
|
|
|
4,059 |
|
|
|
28 |
|
BBB |
|
|
6,649 |
|
|
|
48 |
|
|
|
6,845 |
|
|
|
47 |
|
|
|
7,154 |
|
|
|
48 |
|
|
|
7,221 |
|
|
|
48 |
|
|
|
7,239 |
|
|
|
48 |
|
BB |
|
|
993 |
|
|
|
7 |
|
|
|
1,016 |
|
|
|
7 |
|
|
|
1,012 |
|
|
|
7 |
|
|
|
1,076 |
|
|
|
7 |
|
|
|
1,028 |
|
|
|
7 |
|
B |
|
|
121 |
|
|
|
1 |
|
|
|
122 |
|
|
|
1 |
|
|
|
150 |
|
|
|
1 |
|
|
|
113 |
|
|
|
1 |
|
|
|
107 |
|
|
|
1 |
|
CCC and lower |
|
|
7 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Not rated |
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total private fixed maturity securities |
|
$ |
13,964 |
|
|
|
100 |
% |
|
$ |
14,405 |
|
|
|
100 |
% |
|
$ |
14,815 |
|
|
|
100 |
% |
|
$ |
14,826 |
|
|
|
100 |
% |
|
$ |
14,670 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The company does not have any material exposure to residential mortgage-backed securities collateralized debt
obligations (CDOs). |
(2) |
Nationally Recognized Statistical Rating Organizations. |
32
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Fixed Maturity Securities Summary
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
|
Fair Value |
|
|
% of Total |
|
|
Fair Value |
|
|
% of Total |
|
|
Fair Value |
|
|
% of Total |
|
|
Fair Value |
|
|
% of Total |
|
|
Fair Value |
|
|
% of Total |
|
Fixed Maturity Securities - Security Sector: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government, agencies and government-sponsored enterprises |
|
$ |
3,112 |
|
|
|
7 |
% |
|
$ |
3,389 |
|
|
|
7 |
% |
|
$ |
3,441 |
|
|
|
7 |
% |
|
$ |
3,341 |
|
|
|
7 |
% |
|
$ |
3,307 |
|
|
|
7 |
% |
State and political subdivisions |
|
|
2,164 |
|
|
|
5 |
|
|
|
2,343 |
|
|
|
5 |
|
|
|
2,403 |
|
|
|
5 |
|
|
|
2,399 |
|
|
|
5 |
|
|
|
2,532 |
|
|
|
6 |
|
Foreign government |
|
|
583 |
|
|
|
1 |
|
|
|
625 |
|
|
|
1 |
|
|
|
630 |
|
|
|
1 |
|
|
|
645 |
|
|
|
1 |
|
|
|
622 |
|
|
|
1 |
|
U.S. corporate |
|
|
25,956 |
|
|
|
60 |
|
|
|
27,043 |
|
|
|
59 |
|
|
|
27,872 |
|
|
|
59 |
|
|
|
27,119 |
|
|
|
59 |
|
|
|
26,562 |
|
|
|
58 |
|
Foreign corporate |
|
|
7,554 |
|
|
|
17 |
|
|
|
7,838 |
|
|
|
17 |
|
|
|
8,059 |
|
|
|
17 |
|
|
|
8,010 |
|
|
|
17 |
|
|
|
7,947 |
|
|
|
17 |
|
Residential mortgage-backed securities |
|
|
891 |
|
|
|
2 |
|
|
|
934 |
|
|
|
2 |
|
|
|
985 |
|
|
|
2 |
|
|
|
995 |
|
|
|
2 |
|
|
|
1,069 |
|
|
|
2 |
|
Commercial mortgage-backed securities |
|
|
1,503 |
|
|
|
3 |
|
|
|
1,690 |
|
|
|
4 |
|
|
|
1,831 |
|
|
|
4 |
|
|
|
1,908 |
|
|
|
4 |
|
|
|
1,989 |
|
|
|
4 |
|
Other asset-backed securities |
|
|
2,205 |
|
|
|
5 |
|
|
|
2,208 |
|
|
|
5 |
|
|
|
2,160 |
|
|
|
5 |
|
|
|
2,166 |
|
|
|
5 |
|
|
|
2,187 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed maturity securities |
|
$ |
43,968 |
|
|
|
100 |
% |
|
$ |
46,070 |
|
|
|
100 |
% |
|
$ |
47,381 |
|
|
|
100 |
% |
|
$ |
46,583 |
|
|
|
100 |
% |
|
$ |
46,215 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Holdings - Industry Sector: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and insurance |
|
$ |
8,541 |
|
|
|
26 |
% |
|
$ |
8,871 |
|
|
|
26 |
% |
|
$ |
9,149 |
|
|
|
26 |
% |
|
$ |
8,986 |
|
|
|
26 |
% |
|
$ |
8,858 |
|
|
|
26 |
% |
Utilities |
|
|
4,503 |
|
|
|
13 |
|
|
|
4,653 |
|
|
|
14 |
|
|
|
4,788 |
|
|
|
13 |
|
|
|
4,591 |
|
|
|
13 |
|
|
|
4,476 |
|
|
|
13 |
|
Energy |
|
|
2,967 |
|
|
|
9 |
|
|
|
3,022 |
|
|
|
9 |
|
|
|
2,882 |
|
|
|
8 |
|
|
|
2,813 |
|
|
|
8 |
|
|
|
2,790 |
|
|
|
8 |
|
Consumer - non-cyclical |
|
|
4,573 |
|
|
|
14 |
|
|
|
4,863 |
|
|
|
14 |
|
|
|
4,998 |
|
|
|
14 |
|
|
|
4,872 |
|
|
|
14 |
|
|
|
4,782 |
|
|
|
14 |
|
Consumer - cyclical |
|
|
1,497 |
|
|
|
4 |
|
|
|
1,558 |
|
|
|
4 |
|
|
|
1,602 |
|
|
|
4 |
|
|
|
1,594 |
|
|
|
5 |
|
|
|
1,557 |
|
|
|
5 |
|
Capital goods |
|
|
2,406 |
|
|
|
7 |
|
|
|
2,490 |
|
|
|
7 |
|
|
|
2,554 |
|
|
|
7 |
|
|
|
2,517 |
|
|
|
7 |
|
|
|
2,505 |
|
|
|
7 |
|
Industrial |
|
|
1,773 |
|
|
|
5 |
|
|
|
1,857 |
|
|
|
5 |
|
|
|
1,944 |
|
|
|
6 |
|
|
|
1,863 |
|
|
|
5 |
|
|
|
1,806 |
|
|
|
5 |
|
Technology and communications |
|
|
3,422 |
|
|
|
10 |
|
|
|
3,599 |
|
|
|
10 |
|
|
|
3,713 |
|
|
|
10 |
|
|
|
3,564 |
|
|
|
10 |
|
|
|
3,481 |
|
|
|
10 |
|
Transportation |
|
|
1,371 |
|
|
|
4 |
|
|
|
1,428 |
|
|
|
4 |
|
|
|
1,459 |
|
|
|
4 |
|
|
|
1,439 |
|
|
|
4 |
|
|
|
1,385 |
|
|
|
4 |
|
Other |
|
|
933 |
|
|
|
3 |
|
|
|
973 |
|
|
|
3 |
|
|
|
1,022 |
|
|
|
3 |
|
|
|
1,048 |
|
|
|
3 |
|
|
|
1,072 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
31,986 |
|
|
|
95 |
|
|
|
33,314 |
|
|
|
96 |
|
|
|
34,111 |
|
|
|
95 |
|
|
|
33,287 |
|
|
|
95 |
|
|
|
32,712 |
|
|
|
95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Investment Grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and insurance |
|
|
176 |
|
|
|
1 |
|
|
|
154 |
|
|
|
|
|
|
|
164 |
|
|
|
1 |
|
|
|
153 |
|
|
|
1 |
|
|
|
159 |
|
|
|
1 |
|
Utilities |
|
|
72 |
|
|
|
|
|
|
|
46 |
|
|
|
|
|
|
|
47 |
|
|
|
|
|
|
|
47 |
|
|
|
|
|
|
|
48 |
|
|
|
|
|
Energy |
|
|
218 |
|
|
|
1 |
|
|
|
228 |
|
|
|
1 |
|
|
|
407 |
|
|
|
1 |
|
|
|
409 |
|
|
|
1 |
|
|
|
399 |
|
|
|
1 |
|
Consumer - non-cyclical |
|
|
135 |
|
|
|
|
|
|
|
139 |
|
|
|
|
|
|
|
150 |
|
|
|
|
|
|
|
151 |
|
|
|
|
|
|
|
140 |
|
|
|
|
|
Consumer - cyclical |
|
|
262 |
|
|
|
1 |
|
|
|
273 |
|
|
|
1 |
|
|
|
291 |
|
|
|
1 |
|
|
|
299 |
|
|
|
1 |
|
|
|
302 |
|
|
|
1 |
|
Capital goods |
|
|
157 |
|
|
|
1 |
|
|
|
172 |
|
|
|
1 |
|
|
|
178 |
|
|
|
1 |
|
|
|
167 |
|
|
|
1 |
|
|
|
158 |
|
|
|
1 |
|
Industrial |
|
|
145 |
|
|
|
|
|
|
|
149 |
|
|
|
|
|
|
|
155 |
|
|
|
|
|
|
|
152 |
|
|
|
|
|
|
|
146 |
|
|
|
|
|
Technology and communications |
|
|
212 |
|
|
|
1 |
|
|
|
226 |
|
|
|
1 |
|
|
|
247 |
|
|
|
1 |
|
|
|
277 |
|
|
|
1 |
|
|
|
266 |
|
|
|
1 |
|
Transportation |
|
|
29 |
|
|
|
|
|
|
|
35 |
|
|
|
|
|
|
|
37 |
|
|
|
|
|
|
|
36 |
|
|
|
|
|
|
|
35 |
|
|
|
|
|
Other |
|
|
118 |
|
|
|
|
|
|
|
145 |
|
|
|
|
|
|
|
144 |
|
|
|
|
|
|
|
151 |
|
|
|
|
|
|
|
144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
1,524 |
|
|
|
5 |
|
|
|
1,567 |
|
|
|
4 |
|
|
|
1,820 |
|
|
|
5 |
|
|
|
1,842 |
|
|
|
5 |
|
|
|
1,797 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
33,510 |
|
|
|
100 |
% |
|
$ |
34,881 |
|
|
|
100 |
% |
|
$ |
35,931 |
|
|
|
100 |
% |
|
$ |
35,129 |
|
|
|
100 |
% |
|
$ |
34,509 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Maturity Securities - Contractual Maturity Dates: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due in one year or less |
|
$ |
1,426 |
|
|
|
3 |
% |
|
$ |
1,375 |
|
|
|
3 |
% |
|
$ |
1,328 |
|
|
|
3 |
% |
|
$ |
1,234 |
|
|
|
3 |
% |
|
$ |
1,128 |
|
|
|
2 |
% |
Due after one year through five years |
|
|
8,115 |
|
|
|
18 |
|
|
|
8,000 |
|
|
|
17 |
|
|
|
8,245 |
|
|
|
17 |
|
|
|
7,931 |
|
|
|
17 |
|
|
|
7,856 |
|
|
|
17 |
|
Due after five years through ten years |
|
|
11,368 |
|
|
|
26 |
|
|
|
11,662 |
|
|
|
25 |
|
|
|
11,746 |
|
|
|
25 |
|
|
|
11,915 |
|
|
|
26 |
|
|
|
11,751 |
|
|
|
25 |
|
Due after ten years |
|
|
18,460 |
|
|
|
43 |
|
|
|
20,201 |
|
|
|
44 |
|
|
|
21,086 |
|
|
|
44 |
|
|
|
20,434 |
|
|
|
43 |
|
|
|
20,235 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
39,369 |
|
|
|
90 |
|
|
|
41,238 |
|
|
|
89 |
|
|
|
42,405 |
|
|
|
89 |
|
|
|
41,514 |
|
|
|
89 |
|
|
|
40,970 |
|
|
|
89 |
|
Mortgage and asset-backed securities |
|
|
4,599 |
|
|
|
10 |
|
|
|
4,832 |
|
|
|
11 |
|
|
|
4,976 |
|
|
|
11 |
|
|
|
5,069 |
|
|
|
11 |
|
|
|
5,245 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed maturity securities |
|
$ |
43,968 |
|
|
|
100 |
% |
|
$ |
46,070 |
|
|
|
100 |
% |
|
$ |
47,381 |
|
|
|
100 |
% |
|
$ |
46,583 |
|
|
|
100 |
% |
|
$ |
46,215 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
U.S. GAAP Net Investment Income Yields
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
U.S. GAAP Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities - taxable |
|
$ |
559 |
|
|
$ |
567 |
|
|
$ |
561 |
|
|
$ |
1,687 |
|
|
$ |
562 |
|
|
$ |
576 |
|
|
$ |
578 |
|
|
$ |
580 |
|
|
$ |
2,296 |
|
Fixed maturity securities - non-taxable |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
Equity securities |
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
6 |
|
|
|
3 |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
10 |
|
Commercial mortgage loans |
|
|
76 |
|
|
|
75 |
|
|
|
76 |
|
|
|
227 |
|
|
|
81 |
|
|
|
81 |
|
|
|
78 |
|
|
|
81 |
|
|
|
321 |
|
Policy loans |
|
|
58 |
|
|
|
54 |
|
|
|
55 |
|
|
|
167 |
|
|
|
55 |
|
|
|
55 |
|
|
|
51 |
|
|
|
50 |
|
|
|
211 |
|
Limited partnerships |
|
|
31 |
|
|
|
17 |
|
|
|
28 |
|
|
|
76 |
|
|
|
22 |
|
|
|
38 |
|
|
|
32 |
|
|
|
7 |
|
|
|
99 |
|
Other invested assets |
|
|
69 |
|
|
|
70 |
|
|
|
68 |
|
|
|
207 |
|
|
|
71 |
|
|
|
67 |
|
|
|
66 |
|
|
|
63 |
|
|
|
267 |
|
Cash, cash equivalents, restricted cash and short-term investments |
|
|
28 |
|
|
|
22 |
|
|
|
18 |
|
|
|
68 |
|
|
|
12 |
|
|
|
7 |
|
|
|
1 |
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross investment income before expenses and fees |
|
|
823 |
|
|
|
809 |
|
|
|
809 |
|
|
|
2,441 |
|
|
|
807 |
|
|
|
829 |
|
|
|
809 |
|
|
|
784 |
|
|
|
3,229 |
|
Expenses and fees |
|
|
(22 |
) |
|
|
(24 |
) |
|
|
(22 |
) |
|
|
(68 |
) |
|
|
(20 |
) |
|
|
(21 |
) |
|
|
(22 |
) |
|
|
(20 |
) |
|
|
(83 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
801 |
|
|
$ |
785 |
|
|
$ |
787 |
|
|
$ |
2,373 |
|
|
$ |
787 |
|
|
$ |
808 |
|
|
$ |
787 |
|
|
$ |
764 |
|
|
$ |
3,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Yields |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities - taxable |
|
|
4.5 |
% |
|
|
4.5 |
% |
|
|
4.4 |
% |
|
|
4.5 |
% |
|
|
4.4 |
% |
|
|
4.5 |
% |
|
|
4.5 |
% |
|
|
4.4 |
% |
|
|
4.5 |
% |
Fixed maturity securities - non-taxable |
|
|
5.6 |
% |
|
|
4.9 |
% |
|
|
4.6 |
% |
|
|
5.1 |
% |
|
|
4.0 |
% |
|
|
7.1 |
% |
|
|
3.6 |
% |
|
|
3.6 |
% |
|
|
4.7 |
% |
Equity securities |
|
|
1.1 |
% |
|
|
3.2 |
% |
|
|
2.3 |
% |
|
|
2.2 |
% |
|
|
4.0 |
% |
|
|
4.6 |
% |
|
|
3.4 |
% |
|
|
3.7 |
% |
|
|
4.0 |
% |
Commercial mortgage loans |
|
|
4.5 |
% |
|
|
4.4 |
% |
|
|
4.4 |
% |
|
|
4.4 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.5 |
% |
|
|
4.7 |
% |
|
|
4.6 |
% |
Policy loans |
|
|
10.3 |
% |
|
|
9.8 |
% |
|
|
10.3 |
% |
|
|
10.1 |
% |
|
|
10.3 |
% |
|
|
10.2 |
% |
|
|
9.7 |
% |
|
|
9.8 |
% |
|
|
10.0 |
% |
Limited partnerships(1) |
|
|
4.7 |
% |
|
|
2.7 |
% |
|
|
4.7 |
% |
|
|
4.0 |
% |
|
|
3.9 |
% |
|
|
7.0 |
% |
|
|
6.2 |
% |
|
|
1.4 |
% |
|
|
4.7 |
% |
Other invested assets(2) |
|
|
48.3 |
% |
|
|
50.7 |
% |
|
|
51.6 |
% |
|
|
50.3 |
% |
|
|
56.6 |
% |
|
|
57.0 |
% |
|
|
62.6 |
% |
|
|
64.8 |
% |
|
|
59.9 |
% |
Cash, cash equivalents, restricted cash and short-term investments |
|
|
5.3 |
% |
|
|
4.5 |
% |
|
|
4.0 |
% |
|
|
4.7 |
% |
|
|
2.9 |
% |
|
|
1.7 |
% |
|
|
0.3 |
% |
|
|
|
% |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross investment income before expenses and fees |
|
|
5.1 |
% |
|
|
5.0 |
% |
|
|
5.0 |
% |
|
|
5.0 |
% |
|
|
5.0 |
% |
|
|
5.1 |
% |
|
|
4.9 |
% |
|
|
4.8 |
% |
|
|
5.0 |
% |
Expenses and fees |
|
|
(0.1 |
)% |
|
|
(0.1 |
)% |
|
|
(0.1 |
)% |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
|
|
(0.1 |
)% |
|
|
(0.1 |
)% |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
5.0 |
% |
|
|
4.9 |
% |
|
|
4.9 |
% |
|
|
4.9 |
% |
|
|
4.8 |
% |
|
|
5.0 |
% |
|
|
4.8 |
% |
|
|
4.7 |
% |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. See page 39 herein for average invested assets and cash used in the yield calculation.
(1) |
Limited partnership investments are primarily equity-based and do not have fixed returns by period.
|
(2) |
Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no
corresponding book value within the yield calculation. |
34
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Net Investment Gains (Losses)Detail
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Realized investment gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on
available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. corporate |
|
$ |
(5 |
) |
|
$ |
(39 |
) |
|
$ |
(8 |
) |
|
$ |
(52 |
) |
|
$ |
(25 |
) |
|
$ |
(23 |
) |
|
$ |
(2 |
) |
|
$ |
(12 |
) |
|
$ |
(62 |
) |
U.S. government, agencies and government-sponsored enterprises |
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
|
|
|
|
9 |
|
|
|
|
|
|
|
6 |
|
|
|
15 |
|
Foreign corporate |
|
|
(3 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(16 |
) |
Foreign government |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
|
(5 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(12 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
(10 |
) |
Asset-backed securities |
|
|
|
|
|
|
9 |
|
|
|
|
|
|
|
9 |
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net realized gains (losses) on available-for-sale securities |
|
|
(11 |
) |
|
|
(30 |
) |
|
|
(16 |
) |
|
|
(57 |
) |
|
|
(35 |
) |
|
|
(27 |
) |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
(74 |
) |
Net realized gains (losses) on equity securities sold |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on limited partnerships |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net realized investment gains (losses) |
|
|
(11 |
) |
|
|
(31 |
) |
|
|
(16 |
) |
|
|
(58 |
) |
|
|
(35 |
) |
|
|
(27 |
) |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
(74 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in allowance for credit losses on available-for-sale fixed maturity securities |
|
|
(2 |
) |
|
|
11 |
|
|
|
(15 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-down of
available-for-sale fixed maturity securities |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
(2 |
) |
Net unrealized gains (losses) on equity securities still held |
|
|
(12 |
) |
|
|
21 |
|
|
|
11 |
|
|
|
20 |
|
|
|
11 |
|
|
|
(14 |
) |
|
|
(26 |
) |
|
|
(6 |
) |
|
|
(35 |
) |
Net unrealized gains (losses) on limited partnerships |
|
|
14 |
|
|
|
40 |
|
|
|
|
|
|
|
54 |
|
|
|
36 |
|
|
|
(24 |
) |
|
|
24 |
|
|
|
35 |
|
|
|
71 |
|
Commercial mortgage loans |
|
|
(1 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
(3 |
) |
|
|
1 |
|
|
|
|
|
|
|
2 |
|
|
|
1 |
|
|
|
4 |
|
Derivative instruments |
|
|
(28 |
) |
|
|
(1 |
) |
|
|
12 |
|
|
|
(17 |
) |
|
|
(12 |
) |
|
|
7 |
|
|
|
18 |
|
|
|
19 |
|
|
|
32 |
|
Other |
|
|
(3 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
5 |
|
|
|
3 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment gains (losses), gross |
|
|
(43 |
) |
|
|
39 |
|
|
|
(11 |
) |
|
|
(15 |
) |
|
|
(5 |
) |
|
|
(58 |
) |
|
|
19 |
|
|
|
42 |
|
|
|
(2 |
) |
Adjustment for net investment (gains) losses attributable to noncontrolling interests |
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment gains (losses), net |
|
$ |
(43 |
) |
|
$ |
41 |
|
|
$ |
(11 |
) |
|
$ |
(13 |
) |
|
$ |
(5 |
) |
|
$ |
(58 |
) |
|
$ |
19 |
|
|
$ |
42 |
|
|
$ |
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
Reconciliations of Non-GAAP Measures
36
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Reconciliation of Operating ROE
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Average ROE |
|
Three months ended |
|
U.S. GAAP Basis ROE |
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
Net income available to Genworth Financial, Inc.s common stockholders for the period ended(1) |
|
$ |
29 |
|
|
$ |
137 |
|
|
$ |
122 |
|
|
$ |
381 |
|
|
$ |
136 |
|
Quarterly average Genworth Financial, Inc.s stockholders equity for the period,
excluding accumulated other comprehensive income (loss)(2) |
|
$ |
10,299 |
|
|
$ |
10,307 |
|
|
$ |
10,269 |
|
|
$ |
10,069 |
|
|
$ |
9,831 |
|
Annualized U.S. GAAP Quarterly Basis ROE(1)/(2)
|
|
|
1.1 |
% |
|
|
5.3 |
% |
|
|
4.8 |
% |
|
|
15.1 |
% |
|
|
5.5 |
% |
|
|
|
|
|
|
Operating ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income for the period ended(1)
|
|
$ |
42 |
|
|
$ |
85 |
|
|
$ |
144 |
|
|
$ |
338 |
|
|
$ |
158 |
|
Quarterly average Genworth Financial, Inc.s stockholders equity for the period,
excluding accumulated other comprehensive income (loss)(2) |
|
$ |
10,299 |
|
|
$ |
10,307 |
|
|
$ |
10,269 |
|
|
$ |
10,069 |
|
|
$ |
9,831 |
|
Annualized Operating Quarterly Basis ROE(1)/(2)
|
|
|
1.6 |
% |
|
|
3.3 |
% |
|
|
5.6 |
% |
|
|
13.4 |
% |
|
|
6.4 |
% |
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) |
Net income available to Genworth Financial, Inc.s common stockholders and adjusted operating income from
page 9 herein. |
(2) |
Quarterly average Genworth Financial, Inc.s stockholders equity, excluding accumulated other
comprehensive income (loss), is derived by averaging ending Genworth Financial, Inc.s stockholders equity, excluding accumulated other comprehensive income (loss). |
37
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Reconciliation of Consolidated Expense Ratio
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
GAAP Basis Expense Ratio |
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
(A) |
|
Acquisition and operating expenses, net of deferrals |
|
$ |
228 |
|
|
$ |
226 |
|
|
$ |
240 |
|
|
$ |
694 |
|
|
$ |
225 |
|
|
$ |
245 |
|
|
$ |
579 |
|
|
$ |
236 |
|
|
$ |
1,285 |
|
(B) |
|
Premiums |
|
$ |
915 |
|
|
$ |
902 |
|
|
$ |
915 |
|
|
$ |
2,732 |
|
|
$ |
918 |
|
|
$ |
929 |
|
|
$ |
916 |
|
|
$ |
917 |
|
|
$ |
3,680 |
|
(A) / (B) |
|
GAAP Basis Expense Ratio |
|
|
25 |
% |
|
|
25 |
% |
|
|
26 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
26 |
% |
|
|
63 |
% |
|
|
26 |
% |
|
|
35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Expense Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and operating expenses, net of deferrals |
|
$ |
228 |
|
|
$ |
226 |
|
|
$ |
240 |
|
|
$ |
694 |
|
|
$ |
225 |
|
|
$ |
245 |
|
|
$ |
579 |
|
|
$ |
236 |
|
|
$ |
1,285 |
|
|
|
Less: Reinsurance recapture payment(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
365 |
|
|
|
|
|
|
|
365 |
|
|
|
Less: Legal settlement expenses(2) |
|
|
|
|
|
|
1 |
|
|
|
13 |
|
|
|
14 |
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) |
|
Adjusted acquisition and operating expenses, net of deferrals |
|
$ |
228 |
|
|
$ |
225 |
|
|
$ |
227 |
|
|
$ |
680 |
|
|
$ |
225 |
|
|
$ |
225 |
|
|
$ |
214 |
|
|
$ |
236 |
|
|
$ |
900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
915 |
|
|
$ |
902 |
|
|
$ |
915 |
|
|
$ |
2,732 |
|
|
$ |
918 |
|
|
$ |
929 |
|
|
$ |
916 |
|
|
$ |
917 |
|
|
$ |
3,680 |
|
|
|
Add: Policy fees and other income |
|
|
158 |
|
|
|
166 |
|
|
|
163 |
|
|
|
487 |
|
|
|
167 |
|
|
|
169 |
|
|
|
165 |
|
|
|
170 |
|
|
|
671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D) |
|
Adjusted revenues |
|
$ |
1,073 |
|
|
$ |
1,068 |
|
|
$ |
1,078 |
|
|
$ |
3,219 |
|
|
$ |
1,085 |
|
|
$ |
1,098 |
|
|
$ |
1,081 |
|
|
$ |
1,087 |
|
|
$ |
4,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) / (D) |
|
Adjusted expense ratio(3) |
|
|
21 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
20 |
% |
|
|
20 |
% |
|
|
22 |
% |
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Definition for Adjusted Expense Ratio
The company references the non-GAAP financial measure entitled adjusted expense ratio as a measure of its
operating performance. The company defines adjusted expense ratio as acquisition and operating expenses, net of deferrals, less certain reinsurance expenses, less legal settlement expenses incurred in the companys long-term care insurance
business divided by the sum of premiums, policy fees and other income. Management believes that the expense ratio analysis enhances understanding of the operating performance of the company. However, the adjusted expense ratio as defined by the
company should not be viewed as a substitute for the GAAP basis expense ratio.
(1) |
In the second quarter of 2022, the company paid $365 million to a third party in connection with the
recapture of certain single premium immediate annuity contracts. |
(2) |
Estimated pre-tax class action attorney fees incurred in connection
with legal settlements in the companys long-term care insurance business. These amounts are accrued in the period the court settlement occurs. |
(3) |
In the first quarter of 2022, the company recorded a legal settlement accrual of $25 million in its life
insurance business, which increased the adjusted expense ratio by three percentage points for the three months ended March 31, 2022. |
38
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
Reconciliation of Reported Yield to Core Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
(Assets - amounts in billions) |
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
|
Reported - Total Invested Assets and Cash |
|
$ |
58.7 |
|
|
$ |
61.0 |
|
|
$ |
61.6 |
|
|
$ |
58.7 |
|
|
$ |
60.7 |
|
|
$ |
60.1 |
|
|
$ |
63.2 |
|
|
$ |
68.2 |
|
|
$ |
60.7 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) |
|
|
(5.8 |
) |
|
|
(3.7 |
) |
|
|
(3.0 |
) |
|
|
(5.8 |
) |
|
|
(4.2 |
) |
|
|
(4.9 |
) |
|
|
(1.9 |
) |
|
|
3.0 |
|
|
|
(4.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted end of period invested assets and cash |
|
$ |
64.5 |
|
|
$ |
64.7 |
|
|
$ |
64.6 |
|
|
$ |
64.5 |
|
|
$ |
64.9 |
|
|
$ |
65.0 |
|
|
$ |
65.1 |
|
|
$ |
65.2 |
|
|
$ |
64.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) |
|
Average Invested Assets and Cash Used in Reported and Core Yield Calculation |
|
$ |
64.6 |
|
|
$ |
64.6 |
|
|
$ |
64.8 |
|
|
$ |
64.7 |
|
|
$ |
65.0 |
|
|
$ |
65.0 |
|
|
$ |
65.2 |
|
|
$ |
65.4 |
|
|
$ |
65.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Income - amounts in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) |
|
Reported - Net Investment Income |
|
$ |
801 |
|
|
$ |
785 |
|
|
$ |
787 |
|
|
$ |
2,373 |
|
|
$ |
787 |
|
|
$ |
808 |
|
|
$ |
787 |
|
|
$ |
764 |
|
|
$ |
3,146 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond calls and commercial mortgage loan prepayments |
|
|
1 |
|
|
|
|
|
|
|
2 |
|
|
|
3 |
|
|
|
6 |
|
|
|
6 |
|
|
|
7 |
|
|
|
10 |
|
|
|
29 |
|
|
|
Other non-core items(1)
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
|
|
5 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) |
|
Core Net Investment Income |
|
$ |
799 |
|
|
$ |
782 |
|
|
$ |
784 |
|
|
$ |
2,365 |
|
|
$ |
782 |
|
|
$ |
802 |
|
|
$ |
780 |
|
|
$ |
754 |
|
|
$ |
3,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) / (A) |
|
Reported Yield |
|
|
4.96 |
% |
|
|
4.86 |
% |
|
|
4.86 |
% |
|
|
4.89 |
% |
|
|
4.84 |
% |
|
|
4.97 |
% |
|
|
4.83 |
% |
|
|
4.67 |
% |
|
|
4.83 |
% |
(C) / (A) |
|
Core Yield |
|
|
4.95 |
% |
|
|
4.84 |
% |
|
|
4.84 |
% |
|
|
4.87 |
% |
|
|
4.81 |
% |
|
|
4.93 |
% |
|
|
4.79 |
% |
|
|
4.61 |
% |
|
|
4.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
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