GENWORTH FINANCIAL INC - FORM 8-K - EX-99.2

GENWORTH FINANCIAL INC - FORM 8-K - EX-99.2 - April 29, 2014

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8-K - FORM 8-K - GENWORTH FINANCIAL INC	d698922d8k.htm
EX-99.1 - EX-99.1 - GENWORTH FINANCIAL INC	d698922dex991.htm

Exhibit 99.2

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014


Table of Contents	Page
Investor Letter		3
Use of Non-GAAP Measures and Selected Operating Performance Measures		4-5
Financial Highlights		6

*First Quarter Results*
Consolidated Net Income by Quarter		8
Net Operating Income by Segment by Quarter		9
Consolidated Balance Sheets		10-11
Consolidated Balance Sheets by Segment		12-13
Deferred Acquisition Costs Rollforward		14

*Quarterly Results*
Net Operating Income and Sales—U.S. Life Insurance Division		16-23
Net Operating Income and Sales—Global Mortgage Insurance Division		25-47
Net Operating Income (Loss) and Sales—Corporate and Other Division		49-59

*Additional Financial Data*
Investments Summary		61
Fixed Maturity Securities Summary		62
Commercial Mortgage Loans Summary		63-64
General Account GAAP Net Investment Income Yields		65
Net Investment Gains (Losses), Net of Taxes and Other Adjustments—Detail		66

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		68
Reconciliation of Core Yield		69

*Corporate Information*
Industry Ratings		71-72

Note:

Unless otherwise noted, references in this financial supplement to income (loss) from continuing operations, income (loss) from continuing operations per share, net income (loss), net income (loss) per share, book value and book value per common share should be read as income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders, income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share, net income (loss) available to Genworth Financial, Inc.’s common stockholders, net income (loss) available to Genworth Financial, Inc.’s common stockholders per share, book value available to Genworth Financial, Inc.’s common stockholders and book value available to Genworth Financial, Inc.’s common stockholders per share, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Dear Investor,

Once again, thank you for your continued interest in Genworth Financial.

Please feel free to call with any questions or comments.

Regards,

Amy Corbin

Investor Relations

804 662.2685

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Use of Non-GAAP Measures

This financial supplement includes the non-GAAP⁽¹⁾ financial measure entitled “net operating income (loss).” The chief operating decision maker evaluates segment performance and allocates resources on the basis of net operating income (loss). The company defines net operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments and gains (losses) on the sale of businesses, the early extinguishment of debt and insurance block transactions are also excluded from net operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Other non-operating items are also excluded from net operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.

The following transaction was excluded from net operating income (loss) for the periods presented. In the third quarter of 2013, the company paid an after-tax make-whole expense of approximately $20 million related to the early redemption of Genworth Holdings’ notes that mature in 2015.

There were no infrequent or unusual items excluded from net operating income (loss) during the periods presented other than a $13 million after-tax expense recorded in the second quarter of 2013 related to restructuring costs.

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

The table on page 9 of this financial supplement reflects net operating income (loss) as determined in accordance with accounting guidance related to segment reporting, and a reconciliation of net operating income (loss) of the company’s segments and Corporate and Other activities to net income (loss) available to Genworth Financial, Inc.’s common stockholders for the periods presented. The financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 68 and 69 of this financial supplement.

⁽¹⁾	U.S. Generally Accepted Accounting Principles

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Operating Performance Measures

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

Management regularly monitors and reports sales metrics as a measure of volume of new and renewal business generated in a period. Sales refer to: (1) annualized first-year premiums for term life and long-term care insurance products; (2) annualized first-year deposits plus 5% of excess deposits for universal and term universal life insurance products; (3) 10% of premium deposits for linked-benefits products; (4) new and additional premiums/deposits for fixed annuities; (5) new insurance written for mortgage insurance; and (6) net premiums written for the lifestyle protection insurance business. Sales do not include renewal premiums on policies or contracts written during prior periods. The company considers annualized first-year premiums/ deposits, premium equivalents, new premiums/deposits, new insurance written and net premiums written to be a measure of the company’s operating performance because they represent a measure of new sales of insurance policies or contracts during a specified period, rather than a measure of the company’s revenues or profitability during that period.

Management regularly monitors and reports insurance in-force and risk in-force. Insurance in-force for the life, international mortgage and U.S. mortgage insurance businesses is a measure of the aggregate face value of outstanding insurance policies as of the respective reporting date. For the risk in-force in the international mortgage insurance business, the company has computed an “effective” risk in-force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor of 35% that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s businesses in Canada and Australia. Risk in-force for the U.S. mortgage insurance business is the obligation that is limited under contractual terms to the amounts less than 100% of the mortgage loan value. The company considers insurance in-force and risk in-force to be measures of the company’s operating performance because they represent measures of the size of the business at a specific date which will generate revenues and profits in a future period, rather than measures of the company’s revenues or profitability during that period.

This financial supplement also includes information related to loss mitigation activities for the U.S. mortgage insurance business. The company defines loss mitigation activities as rescissions, cancellations, borrower loan modifications, repayment plans, lender- and borrower-titled pre-sales, claims administration and other loan workouts. Estimated savings related to rescissions are the reduction in carried loss reserves, net of premium refunds and reinstatement of prior rescissions. Estimated savings related to loan modifications and other cure-related loss mitigation actions represent the reduction in carried loss reserves. Estimated savings related to claims mitigation activities represent amounts deducted or “curtailed” from claims due to acts or omissions by the insured or the servicer with respect to the servicing of an insured loan that is not in compliance with obligations under our master policy. For non-cure related actions, including pre-sales, the estimated savings represent the difference between the full claim obligation and the actual amount paid. Loans subject to our loss mitigation actions, the results of which have been included in our reported estimated loss mitigation savings, are subject to re-default and may result in a potential claim in future periods, as well as potential future loss mitigation savings depending on the resolution of the re-defaulted loan. The company believes that this information helps to enhance the understanding of the operating performance of the U.S. mortgage insurance business as loss mitigation activities specifically impact current and future loss reserves and level of claim payments.

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

These operating 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.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	12,032	$	11,851	$	11,665	$	11,547	$	11,398
Total accumulated other comprehensive income		3,483		2,542		2,939		3,142		4,824

Total Genworth Financial, Inc.’s stockholders’ equity	$	15,515	$	14,393	$	14,604	$	14,689	$	16,222


Book value per common share	$	31.27	$	29.08	$	29.55	$	29.76	$	32.90
Book value per common share, excluding accumulated other comprehensive income	$	24.25	$	23.95	$	23.60	$	23.39	$	23.11
Common shares outstanding as of the balance sheet date		496.2		494.8		494.2		493.6		493.1

	Twelve months ended
Twelve Month Rolling Average ROE	March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013

GAAP Basis ROE		5.5%		4.8%		4.6%		4.0%		3.4%
Operating ROE⁽¹⁾		5.6%		5.3%		5.1%		5.0%		4.4%

	Three months ended
Quarterly Average ROE	March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013
GAAP Basis ROE		6.2%		7.1%		3.7%		4.9%		3.6%
Operating ROE⁽¹⁾		6.5%		6.6%		4.8%		4.6%		5.3%


Basic and Diluted Shares	Three months ended March 31, 2014
Weighted-average shares used in basic earnings per common share calculations		495.8
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		6.9

Weighted-average shares used in diluted earnings per common share calculations		502.7

⁽¹⁾	See page 68 herein for a reconciliation of GAAP Basis ROE to Operating ROE.

First Quarter Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Consolidated Net Income by Quarter

(amounts in millions, except per share amounts)


	2014			2013
	1Q			4Q		3Q			2Q		1Q			Total
REVENUES:
Premiums	$	1,307		$	1,310	$	1,291		$	1,286	$	1,261		$	5,148
Net investment income		805			835		801			821		814			3,271
Net investment gains (losses)		(17	)		26		(23	)		21		(61	)		(37	)
Insurance and investment product fees and other		227			241		248			243		289			1,021

Total revenues		2,322			2,412		2,317			2,371		2,303			9,403

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,194			1,256		1,169			1,269		1,201			4,895
Interest credited		183			186		184			184		184			738
Acquisition and operating expenses, net of deferrals		378			406		407			413		433			1,659
Amortization of deferred acquisition costs and intangibles		134			128		182			137		122			569
Interest expense		127			121		124			121		126			492

Total benefits and expenses		2,016			2,097		2,066			2,124		2,066			8,353

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		306			315		251			247		237			1,050
Provision for income taxes		87			70		105			73		76			324

INCOME FROM CONTINUING OPERATIONS		219			245		146			174		161			726
Income (loss) from discontinued operations, net of taxes⁽¹⁾		—			—		2			6		(20	)		(12	)

NET INCOME		219			245		148			180		141			714
Less: net income attributable to noncontrolling interests		35			37		40			39		38			154

NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	184		$	208	$	108		$	141	$	103		$	560


Earnings Per Share Data:

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.37		$	0.42	$	0.21		$	0.27	$	0.25		$	1.16
Diluted	$	0.37		$	0.42	$	0.21		$	0.27	$	0.25		$	1.15

Net income available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.37		$	0.42	$	0.22		$	0.29	$	0.21		$	1.13
Diluted	$	0.37		$	0.41	$	0.22		$	0.28	$	0.21		$	1.12

Weighted-average shares outstanding
Basic		495.8			494.7		494.0			493.4		492.5			493.6
Diluted		502.7			501.2		499.3			497.5		496.8			498.7

⁽¹⁾	Income (loss) from discontinued operations related to the wealth management business, which was sold on August 30, 2013.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income by Segment by Quarter

(amounts in millions, except per share amounts)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
U.S. Life Insurance Division
U.S. Life Insurance segment:
Life Insurance	$	21		$	56		$	54		$	27		$	36		$	173
Long-Term Care Insurance		46			42			41			26			20			129
Fixed Annuities		27			21			16			26			29			92

Total U.S. Life Insurance segment		94			119			111			79			85			394

Total U.S. Life Insurance Division		94			119			111			79			85			394

Global Mortgage Insurance Division
International Mortgage Insurance segment:
Canada		41			44			41			43			42			170
Australia		62			66			61			55			46			228
Other Countries		(4	)		(9	)		(12	)		(9	)		(7	)		(37	)

Total International Mortgage Insurance segment		99			101			90			89			81			361
U.S. Mortgage Insurance segment		33			6			(3	)		13			21			37

Total Global Mortgage Insurance Division		132			107			87			102			102			398

Corporate and Other Division
International Protection segment		7			13			4			1			6			24
Runoff segment		12			19			25			6			16			66
Corporate and Other		(51	)		(65	)		(88	)		(55	)		(58	)		(266	)

Total Corporate and Other Division		(32	)		(33	)		(59	)		(48	)		(36	)		(176	)

NET OPERATING INCOME		194			193			139			133			151			616

ADJUSTMENTS TO NET OPERATING INCOME:
Net investment gains (losses), net of taxes and other adjustments		(10	)		15			(13	)		15			(28	)		(11	)
Expenses related to restructuring, net of taxes		—			—			—			(13	)		—			(13	)
Gains (losses) on early extinguishment of debt, net of taxes		—			—			(20	)		—			—			(20	)
Income (loss) from discontinued operations, net of taxes		—			—			2			6			(20	)		(12	)

NET INCOME AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		184			208			108			141			103			560
Add: net income attributable to noncontrolling interests		35			37			40			39			38			154

NET INCOME	$	219		$	245		$	148		$	180		$	141		$	714


Earnings Per Share Data:

Net income available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	0.37		$	0.42		$	0.22		$	0.29		$	0.21		$	1.13
Diluted	$	0.37		$	0.41		$	0.22		$	0.28		$	0.21		$	1.12

Net operating income per common share
Basic	$	0.39		$	0.39		$	0.28		$	0.27		$	0.31		$	1.25
Diluted	$	0.39		$	0.38		$	0.28		$	0.27		$	0.30		$	1.24

Weighted-average shares outstanding
Basic		495.8			494.7			494.0			493.4			492.5			493.6
Diluted		502.7			501.2			499.3			497.5			496.8			498.7

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	60,244	$	58,629	$	59,086	$	58,008	$	61,082
Equity securities available-for-sale, at fair value		349		341		379		411		490
Commercial mortgage loans		5,894		5,899		5,858		5,831		5,866
Restricted commercial mortgage loans related to securitization entities		227		233		290		309		324
Policy loans		1,438		1,434		1,668		1,671		1,606
Other invested assets		1,875		1,686		1,826		1,976		2,982
Restricted other invested assets related to securitization entities		398		391		392		392		399

Total investments		70,425		68,613		69,499		68,598		72,749
Cash and cash equivalents		4,360		4,214		3,554		3,613		3,797
Accrued investment income		752		678		705		639		769
Deferred acquisition costs		5,177		5,278		5,256		5,237		5,050
Intangible assets		327		399		404		433		346
Goodwill		866		867		867		867		868
Reinsurance recoverable		17,234		17,219		17,224		17,236		17,211
Other assets		691		639		668		704		706
Separate account assets		9,933		10,138		9,957		9,806		10,140
Assets associated with discontinued operations⁽¹⁾		—		—		—		443		439

Total assets	$	109,765	$	108,045	$	108,134	$	107,576	$	112,075

⁽¹⁾	The assets associated with discontinued operations related to the wealth management business prior to the sale on August 30, 2013.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Consolidated Balance Sheets

(amounts in millions)


	March 31, 2014			December 31, 2013⁽²⁾			September 30, 2013			June 30, 2013			March 31, 2013
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	34,076		$	33,705		$	33,612		$	33,437		$	33,601
Policyholder account balances		25,881			25,528			25,266			24,935			25,886
Liability for policy and contract claims		7,156			7,204			7,271			7,302			7,343
Unearned premiums		4,075			4,107			4,160			4,022			4,193
Other liabilities		3,777			4,096			4,607			4,629			5,028
Borrowings related to securitization entities		239			242			297			317			329
Non-recourse funding obligations		2,030			2,038			2,046			2,054			2,062
Long-term borrowings		5,150			5,161			4,780			4,720			4,766
Deferred tax liability		714			206			293			369			1,132
Separate account liabilities		9,933			10,138			9,957			9,806			10,140
Liabilities associated with discontinued operations⁽¹⁾		—			—			—			83			86

Total liabilities		93,031			92,425			92,289			91,674			94,566

Stockholders’ equity:
Common stock		1			1			1			1			1
Additional paid-in capital		12,124			12,127			12,149			12,139			12,131

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains on securities not other-than-temporarily impaired		1,606			914			1,106			1,296			2,471
Net unrealized gains (losses) on other-than-temporarily impaired securities		18			12			3			(2	)		(28	)

Net unrealized investment gains (losses)		1,624			926			1,109			1,294			2,443

Derivatives qualifying as hedges		1,538			1,319			1,442			1,581			1,799
Foreign currency translation and other adjustments		321			297			388			267			582

Total accumulated other comprehensive income		3,483			2,542			2,939			3,142			4,824
Retained earnings		2,607			2,423			2,215			2,107			1,966
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		15,515			14,393			14,604			14,689			16,222
Noncontrolling interests		1,219			1,227			1,241			1,213			1,287

Total stockholders’ equity		16,734			15,620			15,845			15,902			17,509

Total liabilities and stockholders’ equity	$	109,765		$	108,045		$	108,134		$	107,576		$	112,075

⁽¹⁾	The liabilities associated with discontinued operations related to the wealth management business prior to the sale on August 30, 2013.

⁽²⁾	The amounts previously presented as of December 31, 2013 have been revised to conform to the amounts published in the Form 10-K filed on March 3, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Consolidated Balance Sheet by Segment

(amounts in millions)


		March 31, 2014
	U.S. Life Insurance		International Mortgage Insurance		U.S. Mortgage Insurance			International Protection		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	57,260	$	8,736	$	2,210		$	1,626	$	3,057		$	2,648		$	75,537
Deferred acquisition costs and intangible assets		5,529		181		20			275		343			22			6,370
Reinsurance recoverable		16,267		21		41			31		874			—			17,234
Deferred tax and other assets		331		100		34			172		9			45			691
Separate account assets		—		—		—			—		9,933			—			9,933

Total assets	$	79,387	$	9,038	$	2,305		$	2,104	$	14,216		$	2,715		$	109,765

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	34,071	$	—	$	—		$	—	$	5		$	—		$	34,076
Policyholder account balances		22,507		—		—			15		3,359			—			25,881
Liability for policy and contract claims		5,298		372		1,355			114		17			—			7,156
Unearned premiums		613		2,772		135			546		9			—			4,075
Non-recourse funding obligations		2,060		—		—			—		—			(30	)		2,030
Deferred tax and other liabilities		4,236		190		(801	)		405		393			68			4,491
Borrowings and capital securities		—		514		—			—		12			4,863			5,389
Separate account liabilities		—		—		—			—		9,933			—			9,933

Total liabilities		68,785		3,848		689			1,080		13,728			4,901			93,031

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		7,624		3,540		1,606			944		528			(2,210	)		12,032
Allocated accumulated other comprehensive income (loss)		2,978		431		10			80		(40	)		24			3,483

Total Genworth Financial, Inc.’s stockholders’ equity		10,602		3,971		1,616			1,024		488			(2,186	)		15,515
Noncontrolling interests		—		1,219		—			—		—			—			1,219

Total stockholders’ equity		10,602		5,190		1,616			1,024		488			(2,186	)		16,734

Total liabilities and stockholders’ equity	$	79,387	$	9,038	$	2,305		$	2,104	$	14,216		$	2,715		$	109,765

⁽¹⁾	Includes inter-segment eliminations and non-core products.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Consolidated Balance Sheet by Segment

(amounts in millions)


	December 31, 2013
	U.S. Life Insurance		International Mortgage Insurance		U.S. Mortgage Insurance			International Protection		Runoff			Corporate and Other^{(1), (2)}			Total⁽²⁾
ASSETS
Cash and investments	$	55,027	$	8,895	$	2,255		$	1,635	$	2,672		$	3,021		$	73,505
Deferred acquisition costs and intangible assets		5,687		189		19			268		357			24			6,544
Reinsurance recoverable		16,245		20		51			28		875			—			17,219
Deferred tax and other assets		302		90		36			130		20			61			639
Separate account assets		—		—		—			—		10,138			—			10,138

Total assets	$	77,261	$	9,194	$	2,361		$	2,061	$	14,062		$	3,106		$	108,045

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	33,700	$	—	$	—		$	—	$	5		$	—		$	33,705
Policyholder account balances		22,210		—		—			16		3,302			—			25,528
Liability for policy and contract claims		5,216		378		1,482			108		20			—			7,204
Unearned premiums		632		2,815		129			522		9			—			4,107
Non-recourse funding obligations		2,068		—		—			—		—			(30	)		2,038
Deferred tax and other liabilities		3,950		385		(818	)		410		(50	)		425			4,302
Borrowings and capital securities		—		525		—			—		12			4,866			5,403
Separate account liabilities		—		—		—			—		10,138			—			10,138

Total liabilities		67,776		4,103		793			1,056		13,436			5,261			92,425

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		7,380		3,468		1,570			940		656			(2,163	)		11,851
Allocated accumulated other comprehensive income (loss)		2,105		396		(2	)		65		(30	)		8			2,542

Total Genworth Financial, Inc.’s stockholders’ equity		9,485		3,864		1,568			1,005		626			(2,155	)		14,393
Noncontrolling interests		—		1,227		—			—		—			—			1,227

Total stockholders’ equity		9,485		5,091		1,568			1,005		626			(2,155	)		15,620

Total liabilities and stockholders’ equity	$	77,261	$	9,194	$	2,361		$	2,061	$	14,062		$	3,106		$	108,045

⁽¹⁾	Includes inter-segment eliminations and non-core products.

⁽²⁾	The amounts previously presented as of December 31, 2013 have been revised to conform to the amounts published in the Form 10-K filed on March 3, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Deferred Acquisition Costs Rollforward

(amounts in millions)


	U.S. Life Insurance⁽¹⁾			International Mortgage Insurance			U.S. Mortgage Insurance			International Protection			Runoff⁽²⁾			Corporate and Other		Total
Unamortized balance as of December 31, 2013	$	4,713		$	152		$	12		$	243		$	334		$	—	$	5,454
Costs deferred		72			11			2			34			—			—		119
Amortization, net of interest accretion		(68	)		(14	)		(1	)		(28	)		(9	)		—		(120	)
Impact of foreign currency translation		—			(2	)		—			1			—			—		(1	)

Unamortized balance as of March 31, 2014		4,717			147			13			250			325			—		5,452
Effect of accumulated net unrealized investment (gains) losses		(272	)		—			—			—			(3	)		—		(275	)

Balance as of March 31, 2014	$	4,445		$	147		$	13		$	250		$	322		$	—	$	5,177

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

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

U.S. Life Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income—U.S. Life Insurance Division

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	759		$	761		$	751		$	738		$	707		$	2,957
Net investment income		660			675			650			658			638			2,621
Net investment gains (losses)		3			(2	)		(6	)		17			(12	)		(3	)
Insurance and investment product fees and other		171			185			192			190			188			755

Total revenues		1,593			1,619			1,587			1,603			1,521			6,330

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,030			1,036			924			1,041			974			3,975
Interest credited		154			156			156			155			152			619
Acquisition and operating expenses, net of deferrals		161			164			154			177			163			658
Amortization of deferred acquisition costs and intangibles		75			78			139			80			87			384
Interest expense		21			25			25			24			23			97

Total benefits and expenses		1,441			1,459			1,398			1,477			1,399			5,733

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		152			160			189			126			122			597
Provision for income taxes		57			40			82			46			45			213

INCOME FROM CONTINUING OPERATIONS		95			120			107			80			77			384

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		(1	)		(1	)		4			(10	)		8			1
Expenses related to restructuring, net of taxes		—			—			—			9			—			9

NET OPERATING INCOME	$	94		$	119		$	111		$	79		$	85		$	394


Effective tax rate (operating income)⁽¹⁾		37.3	%		25.3	%		43.0	%		37.1	%		36.4	%		35.7	%

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income—U.S. Life Insurance Division

(amounts in millions)


	U.S. Life Insurance Segment
Three months ended March 31, 2014	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	183		$	565		$	11		$	759		$	759
Net investment income		128			290			242			660			660
Net investment gains (losses)		1			—			2			3			3
Insurance and investment product fees and other		168			1			2			171			171

Total revenues		480			856			257			1,593			1,593

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		281			664			85			1,030			1,030
Interest credited		66			—			88			154			154
Acquisition and operating expenses, net of deferrals		50			93			18			161			161
Amortization of deferred acquisition costs and intangibles		26			26			23			75			75
Interest expense		21			—			—			21			21

Total benefits and expenses		444			783			214			1,441			1,441

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		36			73			43			152			152
Provision for income taxes		14			27			16			57			57

INCOME FROM CONTINUING OPERATIONS		22			46			27			95			95

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		(1	)		—			—			(1	)		(1	)

NET OPERATING INCOME	$	21		$	46		$	27		$	94		$	94


Effective tax rate (operating income)		39.3	%		37.0	%		36.2	%		37.3	%		37.3	%


	U.S. Life Insurance Segment
Three months ended March 31, 2013	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	181		$	513		$	13		$	707		$	707
Net investment income		131			264			243			638			638
Net investment gains (losses)		(4	)		(3	)		(5	)		(12	)		(12	)
Insurance and investment product fees and other		186			1			1			188			188

Total revenues		494			775			252			1,521			1,521

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		264			628			82			974			974
Interest credited		64			—			88			152			152
Acquisition and operating expenses, net of deferrals		50			94			19			163			163
Amortization of deferred acquisition costs and intangibles		40			25			22			87			87
Interest expense		23			—			—			23			23

Total benefits and expenses		441			747			211			1,399			1,399

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		53			28			41			122			122
Provision for income taxes		20			10			15			45			45

INCOME FROM CONTINUING OPERATIONS		33			18			26			77			77

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		3			2			3			8			8

NET OPERATING INCOME	$	36		$	20		$	29		$	85		$	85


Effective tax rate (operating income)		37.6	%		35.4	%		35.5	%		36.4	%		36.4	%

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

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

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	183		$	164		$	166		$	173		$	181		$	684
Net investment income		128			139			138			133			131			541
Net investment gains (losses)		1			8			—			9			(4	)		13
Insurance and investment product fees and other		168			183			188			187			186			744

Total revenues		480			494			492			502			494			1,982

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		281			241			160			280			264			945
Interest credited		66			66			68			68			64			266
Acquisition and operating expenses, net of deferrals		50			47			47			50			50			194
Amortization of deferred acquisition costs and intangibles		26			31			88			33			40			192
Interest expense		21			25			25			24			23			97

Total benefits and expenses		444			410			388			455			441			1,694

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		36			84			104			47			53			288
Provision for income taxes		14			22			50			16			20			108

INCOME FROM CONTINUING OPERATIONS		22			62			54			31			33			180

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		(1	)		(6	)		—			(6	)		3			(9	)
Expenses related to restructuring, net of taxes		—			—			—			2			—			2

NET OPERATING INCOME	$	21		$	56		$	54		$	27		$	36		$	173


Effective tax rate (operating income)		39.3	%		25.6	%		47.5	%		34.4	%		37.6	%		37.6	%

SALES:
Sales by Product:
Term Life	$	13		$	9		$	5		$	4		$	4		$	22
Term Universal Life		—			—			—			—			1			1
Universal Life		6			5			5			5			9			24
Linked-Benefits		2			3			2			3			2			10

Total Sales	$	21		$	17		$	12		$	12		$	16		$	57


Sales by Distribution Channel:
Financial Intermediaries	$	1		$	1		$	—		$	1		$	1		$	3
Independent Producers		20			16			12			10			15			53
Dedicated Sales Specialist		—			—			—			1			—			1

Total Sales	$	21		$	17		$	12		$	12		$	16		$	57

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Life Insurance In-Force

(amounts in millions)


	2014		2013
	1Q		4Q		3Q		2Q		1Q
Term and Whole Life Insurance
Life insurance in-force, net of reinsurance	$	338,372	$	336,015	$	335,039	$	336,008	$	338,014
Life insurance in-force before reinsurance	$	523,925	$	523,694	$	525,171	$	528,874	$	534,194

Term Universal Life Insurance
Life insurance in-force, net of reinsurance	$	131,256	$	132,293	$	133,500	$	134,868	$	136,222
Life insurance in-force before reinsurance	$	132,294	$	133,348	$	134,555	$	135,937	$	137,297

Universal Life Insurance
Life insurance in-force, net of reinsurance	$	42,814	$	43,150	$	43,447	$	43,773	$	44,051
Life insurance in-force before reinsurance	$	49,418	$	49,790	$	50,203	$	50,558	$	50,906

Total Life Insurance
Life insurance in-force, net of reinsurance	$	512,442	$	511,458	$	511,986	$	514,649	$	518,287
Life insurance in-force before reinsurance	$	705,637	$	706,832	$	709,929	$	715,369	$	722,397

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

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

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	565		$	582		$	564		$	550		$	513		$	2,209
Net investment income		290			291			282			277			264			1,114
Net investment gains (losses)		—			(4	)		(2	)		(2	)		(3	)		(11	)
Insurance and investment product fees and other		1			—			2			1			1			4

Total revenues		856			869			846			826			775			3,316

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		664			701			659			663			628			2,651
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		93			94			90			107			94			385
Amortization of deferred acquisition costs and intangibles		26			27			31			24			25			107
Interest expense		—			—			—			—			—			—

Total benefits and expenses		783			822			780			794			747			3,143

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		73			47			66			32			28			173
Provision for income taxes		27			8			26			13			10			57

INCOME FROM CONTINUING OPERATIONS		46			39			40			19			18			116

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		—			3			1			1			2			7
Expenses related to restructuring, net of taxes		—			—			—			6			—			6

NET OPERATING INCOME	$	46		$	42		$	41		$	26		$	20		$	129


Effective tax rate (operating income)		37.0	%		19.8	%		38.6	%		40.2	%		35.4	%		33.3	%

SALES:
Sales by Distribution Channel:
Financial Intermediaries	$	2		$	2		$	4		$	3		$	4		$	13
Independent Producers		16			17			20			23			21			81
Dedicated Sales Specialist		3			5			13			12			10			40

Total Individual Long-Term Care Insurance		21			24			37			38			35			134
Group Long-Term Care Insurance		1			2			3			5			5			15

Total Sales	$	22		$	26		$	40		$	43		$	40		$	149



RATIOS:
Loss Ratio⁽¹⁾		63.3	%		68.2	%		63.7	%		66.6	%		66.2	%		66.2	%
Gross Benefits Ratio⁽²⁾		117.5	%		120.4	%		116.8	%		120.3	%		122.8	%		120.0	%

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

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

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	11		$	15		$	21		$	15		$	13		$	64
Net investment income		242			245			230			248			243			966
Net investment gains (losses)		2			(6	)		(4	)		10			(5	)		(5	)
Insurance and investment product fees and other		2			2			2			2			1			7

Total revenues		257			256			249			275			252			1,032

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		85			94			105			98			82			379
Interest credited		88			90			88			87			88			353
Acquisition and operating expenses, net of deferrals		18			23			17			20			19			79
Amortization of deferred acquisition costs and intangibles		23			20			20			23			22			85
Interest expense		—			—			—			—			—			—

Total benefits and expenses		214			227			230			228			211			896

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		43			29			19			47			41			136
Provision for income taxes		16			10			6			17			15			48

INCOME FROM CONTINUING OPERATIONS		27			19			13			30			26			88

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		—			2			3			(5	)		3			3
Expenses related to restructuring, net of taxes		—			—			—			1			—			1

NET OPERATING INCOME	$	27		$	21		$	16		$	26		$	29		$	92


Effective tax rate (operating income)		36.2	%		33.6	%		35.4	%		36.3	%		35.5	%		35.3	%

SALES:
Sales by Product:
Single Premium Immediate Annuities	$	28		$	52		$	53		$	48		$	40		$	193
Single Premium Deferred Annuities		492			678			707			164			67			1,616

Total Sales	$	520		$	730		$	760		$	212		$	107		$	1,809


Sales by Distribution Channel:
Financial Intermediaries	$	318		$	425		$	528		$	134		$	47		$	1,134
Independent Producers		194			292			226			71			56			645
Dedicated Sales Specialists		8			13			6			7			4			30

Total Sales	$	520		$	730		$	760		$	212		$	107		$	1,809

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Operating Performance Measures—U.S. Life Insurance Segment—Fixed Annuities

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
Single Premium Deferred Annuities
Account value, beginning of the period	$	11,807		$	11,341		$	10,842		$	10,881		$	11,038		$	11,038
Deposits		496			686			714			166			68			1,634
Surrenders, benefits and product charges		(312	)		(300	)		(293	)		(281	)		(302	)		(1,176	)

Net flows		184			386			421			(115	)		(234	)		458
Interest credited		79			80			78			76			77			311

Account value, end of the period		12,070			11,807			11,341			10,842			10,881			11,807


Single Premium Immediate Annuities
Account value, beginning of the period		5,837			5,931			6,010			6,319			6,442			6,442
Premiums and deposits		49			91			80			71			65			307
Surrenders, benefits and product charges		(215	)		(221	)		(214	)		(228	)		(235	)		(898	)

Net flows		(166	)		(130	)		(134	)		(157	)		(170	)		(591	)
Interest credited		68			69			71			72			73			285
Effect of accumulated net unrealized investment gains (losses)		136			(33	)		(16	)		(224	)		(26	)		(299	)

Account value, end of the period		5,875			5,837			5,931			6,010			6,319			5,837


Structured Settlements
Account value, net of reinsurance, beginning of the period		1,093			1,095			1,097			1,101			1,101			1,101
Surrenders, benefits and product charges		(15	)		(16	)		(17	)		(18	)		(15	)		(66	)

Net flows		(15	)		(16	)		(17	)		(18	)		(15	)		(66	)
Interest credited		14			14			15			14			15			58

Account value, net of reinsurance, end of the period		1,092			1,093			1,095			1,097			1,101			1,093

Total Fixed Annuities	$	19,037		$	18,737		$	18,367		$	17,949		$	18,301		$	18,737

Global Mortgage Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income—Global Mortgage Insurance Division

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	372		$	390		$	380		$	392		$	388		$	1,550
Net investment income		92			93			98			95			107			393
Net investment gains (losses)		(3	)		9			7			13			3			32
Insurance and investment product fees and other		2			1			—			—			1			2

Total revenues		463			493			485			500			499			1,977

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		110			172			196			177			184			729
Acquisition and operating expenses, net of deferrals		82			107			91			96			91			385
Amortization of deferred acquisition costs and intangibles		17			15			15			19			17			66
Interest expense		8			7			9			8			9			33

Total benefits and expenses		217			301			311			300			301			1,213

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		246			192			174			200			198			764
Provision for income taxes		80			44			45			55			57			201

INCOME FROM CONTINUING OPERATIONS		166			148			129			145			141			563
Less: net income attributable to noncontrolling interests		35			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		131			111			89			106			103			409

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net of taxes and other adjustments		1			(4	)		(2	)		(5	)		(1	)		(12	)
Expenses related to restructuring, net of taxes		—			—			—			1			—			1

NET OPERATING INCOME⁽¹⁾	$	132		$	107		$	87		$	102		$	102		$	398


Effective tax rate (operating income)		33.9	%		20.7	%		25.3	%		27.2	%		30.0	%		25.9	%

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the Global Mortgage Insurance Division was $148 million for the three months ended March 31, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Three months ended March 31, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	130		$	97		$	8		$	235		$	137		$	372
Net investment income		39			34			1			74			18			92
Net investment gains (losses)		(3	)		—			—			(3	)		—			(3	)
Insurance and investment product fees and other		2			—			—			2			—			2

Total revenues		168			131			9			308			155			463

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		26			17			4			47			63			110
Acquisition and operating expenses, net of deferrals		21			19			9			49			33			82
Amortization of deferred acquisition costs and intangibles		10			5			—			15			2			17
Interest expense		5			3			—			8			—			8

Total benefits and expenses		62			44			13			119			98			217

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		106			87			(4	)		189			57			246
Provision for income taxes		31			25			—			56			24			80

INCOME (LOSS) FROM CONTINUING OPERATIONS		75			62			(4	)		133			33			166
Less: net income attributable to noncontrolling interests		35			—			—			35			—			35

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		40			62			(4	)		98			33			131

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net of taxes and other adjustments		1			—			—			1			—			1

NET OPERATING INCOME (LOSS)	$	41		$	62		$	(4	)	$	99		$	33		$	132


Effective tax rate (operating income (loss))		31.6	%		29.0	%		10.3	%		30.7	%		42.0	%		33.9	%

	International Mortgage Insurance Segment
Three months ended March 31, 2013	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	144		$	101		$	9		$	254		$	134		$	388
Net investment income		44			43			1			88			19			107
Net investment gains (losses)		4			(1	)		—			3			—			3
Insurance and investment product fees and other		—			—			—			—			1			1

Total revenues		192			143			10			345			154			499

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		44			48			8			100			84			184
Acquisition and operating expenses, net of deferrals		19			24			9			52			39			91
Amortization of deferred acquisition costs and intangibles		10			6			—			16			1			17
Interest expense		6			3			—			9			—			9

Total benefits and expenses		79			81			17			177			124			301

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		113			62			(7	)		168			30			198
Provision for income taxes		32			16			—			48			9			57

INCOME (LOSS) FROM CONTINUING OPERATIONS		81			46			(7	)		120			21			141
Less: net income attributable to noncontrolling interests		38			—			—			38			—			38

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		43			46			(7	)		82			21			103

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net of taxes and other adjustments		(1	)		—			—			(1	)		—			(1	)

NET OPERATING INCOME (LOSS)	$	42		$	46		$	(7	)	$	81		$	21		$	102


Effective tax rate (operating income (loss))		30.2	%		26.7	%		4.9	%		29.9	%		30.1	%		30.0	%

International Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income—International Mortgage Insurance Segment

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	235		$	248		$	243		$	251		$	254		$	996
Net investment income		74			80			80			85			88			333
Net investment gains (losses)		(3	)		9			7			13			3			32
Insurance and investment product fees and other		2			1			(1	)		—			—			—

Total revenues		308			338			329			349			345			1,361

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		47			64			73			80			100			317
Acquisition and operating expenses, net of deferrals		49			72			56			61			52			241
Amortization of deferred acquisition costs and intangibles		15			14			13			17			16			60
Interest expense		8			7			9			8			9			33

Total benefits and expenses		119			157			151			166			177			651

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		189			181			178			183			168			710
Provision for income taxes		56			39			46			51			48			184

INCOME FROM CONTINUING OPERATIONS		133			142			132			132			120			526
Less: net income attributable to noncontrolling interests		35			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		98			105			92			93			82			372

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net of taxes and other adjustments		1			(4	)		(2	)		(5	)		(1	)		(12	)
Expenses related to restructuring, net of taxes		—			—			—			1			—			1

NET OPERATING INCOME⁽¹⁾	$	99		$	101		$	90		$	89		$	81		$	361


Effective tax rate (operating income)		30.7	%		18.8	%		25.0	%		27.8	%		29.9	%		25.3	%

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Mortgage Insurance segment was $115 million for the three months ended March 31, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income and Sales—International Mortgage Insurance Segment—Canada

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	130		$	137		$	138		$	141		$	144		$	560
Net investment income		39			41			43			42			44			170
Net investment gains (losses)		(3	)		6			9			12			4			31
Insurance and investment product fees and other		2			—			—			(1	)		—			(1	)

Total revenues		168			184			190			194			192			760

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		26			30			30			35			44			139
Acquisition and operating expenses, net of deferrals		21			29			23			22			19			93
Amortization of deferred acquisition costs and intangibles		10			8			9			10			10			37
Interest expense		5			5			6			5			6			22

Total benefits and expenses		62			72			68			72			79			291

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		106			112			122			122			113			469
Provision for income taxes		31			28			38			35			32			133

INCOME FROM CONTINUING OPERATIONS		75			84			84			87			81			336
Less: net income attributable to noncontrolling interests		35			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		40			47			44			48			43			182

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net of taxes and other adjustments		1			(3	)		(3	)		(5	)		(1	)		(12	)

NET OPERATING INCOME⁽¹⁾	$	41		$	44		$	41		$	43		$	42		$	170


Effective tax rate (operating income)		31.6	%		22.9	%		35.0	%		29.3	%		30.2	%		29.5	%

SALES:
New Insurance Written (NIW)
Flow	$	2,900		$	5,000		$	6,000		$	4,700		$	3,300		$	19,000
Bulk		2,900			2,400			3,900			6,400			2,400			15,100

Total Canada NIW⁽²⁾	$	5,800		$	7,400		$	9,900		$	11,100		$	5,700		$	34,100

⁽¹⁾	Net operating income for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $45 million for the three months ended March 31, 2014.

⁽²⁾	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $6,400 million for the three months ended March 31, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income and Sales—International Mortgage Insurance Segment—Australia

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	97		$	98		$	98		$	101		$	101		$	398
Net investment income		34			38			36			42			43			159
Net investment gains (losses)		—			—			(2	)		1			(1	)		(2	)
Insurance and investment product fees and other		—			1			(1	)		—			—			—

Total revenues		131			137			131			144			143			555

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		17			21			29			36			48			134
Acquisition and operating expenses, net of deferrals		19			34			25			27			24			110
Amortization of deferred acquisition costs and intangibles		5			5			5			6			6			22
Interest expense		3			2			3			3			3			11

Total benefits and expenses		44			62			62			72			81			277

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		87			75			69			72			62			278
Provision for income taxes		25			9			9			17			16			51

INCOME FROM CONTINUING OPERATIONS		62			66			60			55			46			227
Less: net income attributable to noncontrolling interests		—			—			—			—			—			—

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		62			66			60			55			46			227

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net of taxes and other adjustments		—			—			1			—			—			1

NET OPERATING INCOME⁽¹⁾	$	62		$	66		$	61		$	55		$	46		$	228


Effective tax rate (operating income)		29.0	%		12.0	%		13.7	%		23.5	%		26.7	%		18.6	%

SALES:
New Insurance Written (NIW)
Flow	$	7,800		$	9,000		$	8,000		$	8,700		$	7,900		$	33,600
Bulk		—			—			100			900			—			1,000

Total Australia NIW⁽²⁾	$	7,800		$	9,000		$	8,100		$	9,600		$	7,900		$	34,600

⁽¹⁾	Net operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $74 million for the three months ended March 31, 2014.

⁽²⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $9,100 million for the three months ended March 31, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Loss and Sales—International Mortgage Insurance Segment—Other Countries

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	8		$	13		$	7		$	9		$	9		$	38
Net investment income		1			1			1			1			1			4
Net investment gains (losses)		—			3			—			—			—			3
Insurance and investment product fees and other		—			—			—			1			—			1

Total revenues		9			17			8			11			10			46

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		4			13			14			9			8			44
Acquisition and operating expenses, net of deferrals		9			9			8			12			9			38
Amortization of deferred acquisition costs and intangibles		—			1			(1	)		1			—			1
Interest expense		—			—			—			—			—			—

Total benefits and expenses		13			23			21			22			17			83

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(4	)		(6	)		(13	)		(11	)		(7	)		(37	)
Provision (benefit) for income taxes		—			2			(1	)		(1	)		—			—

LOSS FROM CONTINUING OPERATIONS		(4	)		(8	)		(12	)		(10	)		(7	)		(37	)
Less: net income attributable to noncontrolling interests		—			—			—			—			—			—

LOSS FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(4	)		(8	)		(12	)		(10	)		(7	)		(37	)

ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net of taxes and other adjustments		—			(1	)		—			—			—			(1	)
Expenses related to restructuring, net of taxes		—			—			—			1			—			1

NET OPERATING LOSS⁽¹⁾	$	(4	)	$	(9	)	$	(12	)	$	(9	)	$	(7	)	$	(37	)


Effective tax rate (operating loss)		10.3	%		-15.3	%		11.2	%		5.7	%		4.9	%		3.1	%

SALES:
New Insurance Written (NIW)
Flow	$	400		$	500		$	500		$	400		$	400		$	1,800
Bulk		—			600			—			—			—			600

Total Other Countries NIW⁽²⁾	$	400		$	1,100		$	500		$	400		$	400		$	2,400

⁽¹⁾	Net operating loss for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $(4) million for the three months ended March 31, 2014.

⁽²⁾	New insurance written for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $400 million for the three months ended March 31, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written
Canada	$	77		$	125		$	156		$	134		$	84		$	499
Australia		126			147			123			132			117			519
Other Countries⁽¹⁾		6			6			6			7			5			24

Total Net Premiums Written	$	209		$	278		$	285		$	273		$	206		$	1,042

Loss Ratio⁽²⁾
Canada		20	%		22	%		22	%		25	%		31	%		25	%
Australia		17	%		21	%		31	%		35	%		47	%		34	%
Other Countries		55	%		102	%		170	%		110	%		90	%		115	%
Total Loss Ratio		20	%		25	%		31	%		32	%		39	%		32	%

GAAP Basis Expense Ratio⁽³⁾
Canada		23	%		27	%		23	%		22	%		20	%		23	%
Australia		25	%		39	%		30	%		32	%		31	%		33	%
Other Countries⁽¹⁾		107	%		69	%		106	%		129	%		113	%		101	%
Total GAAP Basis Expense Ratio		27	%		34	%		29	%		30	%		27	%		30	%

Adjusted Expense Ratio⁽⁴⁾
Canada		39	%		30	%		20	%		23	%		35	%		26	%
Australia		20	%		26	%		24	%		25	%		27	%		25	%
Other Countries⁽¹⁾		142	%		146	%		136	%		177	%		174	%		158	%
Total Adjusted Expense Ratio		30	%		31	%		24	%		28	%		34	%		29	%

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

⁽¹⁾

Includes the impact of settlements and cancelled insurance contracts, primarily with lenders in Europe. Primary flow risk in-force excludes $282 million, $316 million, $285 million, $250 million and $225 million of risk in-force in Europe ceded under quota share reinsurance agreements as of March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively.

⁽²⁾

The ratio of incurred losses and loss adjustment expense to net earned premiums. In determining the pricing of the mortgage insurance products, the company develops a pricing loss ratio which uses industry and company loss experience over a number of years, which incorporate both favorable and unfavorable economic environments, differing coverage levels and varying capital requirements. Actual results may vary from pricing loss ratios for a number of reasons, which include differing economic conditions and actual individual product and lender performance.

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

⁽⁴⁾	The ratio of an insurer’s general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2014		2013
	1Q		4Q		3Q		2Q		1Q
Primary Insurance In-Force
Canada⁽¹⁾	$	291,900	$	298,000	$	300,700	$	285,200	$	284,700
Australia		281,000		267,900		275,500		266,500		299,000
Other Countries		26,200		26,300		32,500		31,300		31,400

Total Primary Insurance In-Force	$	599,100	$	592,200	$	608,700	$	583,000	$	615,100

Primary Risk In-Force⁽²⁾
Canada
Flow	$	80,100	$	82,300	$	83,400	$	79,700	$	80,900
Bulk		22,100		22,000		21,900		20,100		18,800

Total Canada		102,200		104,300		105,300		99,800		99,700

Australia
Flow		91,100		86,700		88,800		85,700		96,100
Bulk		7,200		7,100		7,600		7,600		8,500

Total Australia		98,300		93,800		96,400		93,300		104,600

Other Countries
Flow⁽³⁾		3,300		3,200		4,000		3,900		3,900
Bulk		400		400		300		300		300

Total Other Countries		3,700		3,600		4,300		4,200		4,200

Total Primary Risk In-Force	$	204,200	$	201,700	$	206,000	$	197,300	$	208,500

⁽¹⁾

As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company surveyed its largest customers and obtained updated outstanding balances in Canada. As a result, the company estimates that the outstanding balance of insured mortgages was approximately $152.0 billion as of December 31, 2013, $155.0 billion as of September 30, 2013 and $150.0 billion as of June 30, 2013 and March 31, 2013. This is based on the extrapolation of the amounts reported by lenders surveyed to the entire insured population.

⁽²⁾

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

⁽³⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(dollar amounts in millions)



Primary Insurance	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Insured loans in-force⁽¹⁾		1,549,650			1,527,554			1,501,139			1,464,060			1,428,163
Insured delinquent loans		1,860			1,830			1,778			1,778			1,963
Insured delinquency rate⁽²⁾		0.12	%		0.12	%		0.12	%		0.12	%		0.14	%

Flow loans in-force⁽¹⁾		1,197,083			1,187,753			1,171,486			1,151,957			1,136,321
Flow delinquent loans		1,634			1,591			1,566			1,562			1,726
Flow delinquency rate⁽²⁾		0.14	%		0.13	%		0.13	%		0.14	%		0.15	%

Bulk loans in-force⁽¹⁾		352,567			339,801			329,653			312,103			291,842
Bulk delinquent loans		226			239			212			216			237
Bulk delinquency rate⁽²⁾		0.06	%		0.07	%		0.06	%		0.07	%		0.08	%

Loss Metrics	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Beginning Reserves	$	102		$	108		$	112		$	118		$	130
Paid claims⁽³⁾		(27	)		(33	)		(33	)		(39	)		(53	)
Increase in reserves		26			30			27			36			44
Impact of changes in foreign exchange rates		(4	)		(3	)		2			(3	)		(3	)

Ending Reserves	$	97		$	102		$	108		$	112		$	118


	March 31, 2014						December 31, 2013						March 31, 2013
Province and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
Ontario		47	%		0.07	%		46	%		0.08	%		47	%		0.08%
British Columbia		15			0.17	%		15			0.17	%		15			0.20%
Alberta		16			0.12	%		17			0.14	%		16			0.18%
Quebec		14			0.19	%		14			0.17	%		14			0.19%
Nova Scotia		2			0.24	%		2			0.19	%		2			0.22%
Saskatchewan		2			0.11	%		2			0.08	%		2			0.12%
Manitoba		2			0.08	%		2			0.09	%		2			0.06%
New Brunswick		1			0.24	%		1			0.24	%		1			0.23%
All Other		1			0.11	%		1			0.12	%		1			0.11%

Total		100	%		0.12	%		100	%		0.12	%		100	%		0.14%


By Policy Year
2006 and prior		34	%		0.04	%		35	%		0.04	%		38	%		0.06%
2007		10			0.21	%		10			0.23	%		11			0.31%
2008		8			0.25	%		8			0.27	%		9			0.29%
2009		5			0.25	%		5			0.25	%		6			0.26%
2010		9			0.26	%		9			0.25	%		10			0.29%
2011		8			0.27	%		8			0.24	%		10			0.22%
2012		12			0.14	%		13			0.10	%		14			0.04%
2013		12			0.04	%		12			0.03	%		2			— %
2014		2			—	%		—			—	%		—			— %

Total		100	%		0.12	%		100	%		0.12	%		100	%		0.14%

⁽¹⁾	Insured loans in-force represent the original number of loans insured for which the coverage term has not expired, and for which no policy level cancellation or termination has been received.

⁽²⁾	Delinquent rates are based on insured loans in-force.

⁽³⁾	Paid claims exclude adjustments for expected recoveries related to loss reserves.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(Canadian dollar amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	28		$	32		$	32		$	39		$	51		$	154
Bulk		1			2			2			1			2			7

Total Paid Claims	$	29		$	34		$	34		$	40		$	53		$	161


Average Paid Claim (in thousands)	$	66.4		$	72.2		$	69.4		$	73.1		$	84.9

Average Reserve Per Delinquency (in thousands)	$	57.5		$	59.0		$	62.5		$	66.1		$	61.3

Loss Metrics

Beginning Reserves	$	108		$	111		$	118		$	120		$	129
Paid claims		(29	)		(34	)		(34	)		(40	)		(53	)
Increase in reserves		28			31			27			38			44

Ending Reserves	$	107		$	108		$	111		$	118		$	120

Loan Amount

Over $550K		5	%		5	%		5	%		5	%		5	%
$400K to $550K		11			10			10			10			10
$250K to $400K		32			32			32			32			31
$100K to $250K		47			48			48			48			49
$100K or Less		5			5			5			5			5

Total		100	%		100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	208		$	207		$	206		$	205		$	203

Average Effective Loan-To-Value Ratios By Policy Year⁽²⁾

2006 and prior		39	%		39	%		36	%		38	%		39	%
2007		65	%		65	%		64	%		66	%		68	%
2008		71	%		72	%		69	%		71	%		72	%
2009		70	%		70	%		71	%		73	%		74	%
2010		77	%		77	%		77	%		80	%		81	%
2011		81	%		82	%		83	%		86	%		87	%
2012		87	%		87	%		87	%		90	%		91	%
2013		91	%		92	%		91	%		92	%		—	%
Total Flow		57	%		57	%		55	%		56	%		56	%

Total Bulk		41	%		41	%		34	%		31	%		31	%

Total		54	%		53	%		51	%		50	%		50	%

All amounts presented in Canadian dollars.

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

⁽²⁾

Loan amounts (including capitalized premiums) reflect interest rates at time of loan origination and estimated scheduled principal repayments since loan origination. Home price estimates based on regional home price appreciation/depreciation data from the Canadian Real Estate Association. All data used in the effective loan-to-value ratio calculation reflects conditions as of the end of the previous quarter.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(dollar amounts in millions)


Primary Insurance	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Insured loans in-force		1,477,063			1,474,181			1,463,148			1,459,376			1,448,090
Insured delinquent loans		5,070			4,980			5,454			5,820			5,868
Insured delinquency rate		0.34	%		0.34	%		0.37	%		0.40	%		0.41	%

Flow loans in-force		1,355,635			1,350,571			1,336,901			1,330,157			1,320,701
Flow delinquent loans		4,813			4,760			5,192			5,513			5,567
Flow delinquency rate		0.36	%		0.35	%		0.39	%		0.41	%		0.42	%

Bulk loans in-force		121,428			123,610			126,247			129,219			127,389
Bulk delinquent loans		257			220			262			307			301
Bulk delinquency rate		0.21	%		0.18	%		0.21	%		0.24	%		0.24	%

Loss Metrics	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013

Beginning Reserves	$	172		$	198		$	200		$	238		$	251
Paid claims		(27	)		(39	)		(37	)		(45	)		(61	)
Increase in reserves		17			20			30			35			48
Impact of changes in foreign exchange rates		6			(7	)		5			(28	)		—

Ending Reserves	$	168		$	172		$	198		$	200		$	238


	March 31, 2014						December 31, 2013						March 31, 2013
State and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
New South Wales		29	%		0.31	%		30	%		0.30	%		30	%		0.39%
Victoria		23			0.31	%		23			0.30	%		23			0.33%
Queensland		23			0.45	%		22			0.46	%		22			0.54%
Western Australia		11			0.33	%		11			0.29	%		11			0.36%
South Australia		6			0.42	%		6			0.40	%		6			0.48%
New Zealand		2			0.34	%		2			0.38	%		2			0.57%
Australian Capital Territory		3			0.11	%		3			0.10	%		3			0.09%
Tasmania		2			0.29	%		2			0.31	%		2			0.38%
Northern Territory		1			0.20	%		1			0.25	%		1			0.17%

Total		100	%		0.34	%		100	%		0.34	%		100	%		0.41%

By Policy Year
2006 and prior		34	%		0.22	%		35	%		0.21	%		38	%		0.26%
2007		9			0.69	%		9			0.69	%		10			0.86%
2008		8			0.89	%		8			0.85	%		10			1.01%
2009		10			0.64	%		10			0.62	%		11			0.72%
2010		7			0.36	%		8			0.34	%		8			0.33%
2011		8			0.34	%		8			0.31	%		9			0.22%
2012		10			0.22	%		11			0.19	%		11			0.06%
2013		11			0.05	%		11			0.02	%		3			— %
2014		3			—	%		—			—	%		—			— %

Total		100	%		0.34	%		100	%		0.34	%		100	%		0.41%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(Australian dollar amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow	$	30		$	41		$	39		$	44		$	59		$	183
Bulk		—			—			2			—			—			2

Total Paid Claims	$	30		$	41		$	41		$	44		$	59		$	185


Average Paid Claim (in thousands)	$	65.1		$	71.5		$	79.9		$	80.3		$	81.4

Average Reserve Per Delinquency (in thousands)	$	35.7		$	38.6		$	38.8		$	37.7		$	38.9
Loss Metrics

Beginning Reserves	$	192		$	212		$	220		$	228		$	241
Paid claims		(30	)		(41	)		(41	)		(44	)		(59	)
Increase in reserves		19			21			33			36			46

Ending Reserves	$	181		$	192		$	212		$	220		$	228

Loan Amount

Over $550K		12	%		12	%		12	%		12	%		12	%
$400K to $550K		18			17			17			17			16
$250K to $400K		37			37			37			37			37
$100K to $250K		27			28			28			28			29
$100K or Less		6			6			6			6			6

Total		100	%		100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	205		$	203		$	202		$	200		$	198
Average Effective Loan-To-Value Ratios By Policy Year^(1), (2)

2006 and prior		40	%		41	%		43	%		47	%		48	%
2007		63	%		64	%		66	%		67	%		68	%
2008		70	%		72	%		74	%		74	%		76	%
2009		73	%		75	%		77	%		77	%		79	%
2010		78	%		80	%		83	%		83	%		85	%
2011		80	%		82	%		85	%		85	%		87	%
2012		80	%		82	%		85	%		85	%		86	%
2013		84	%		85	%		87	%		87	%		—	%
Total Flow		62	%		64	%		65	%		68	%		69	%

Total Bulk		30	%		31	%		32	%		37	%		38	%
Total		59	%		60	%		61	%		65	%		66	%

All amounts presented in Australian dollars.

⁽¹⁾

Loan amounts (including capitalized premiums) reflect interest rates at time of loan origination and estimated scheduled principal repayments since loan origination. Home price estimates based on regional home price appreciation/depreciation data from RP Data. All data used in the effective loan-to-value ratio calculation reflects conditions as of the end of the previous quarter. Effective loan-to-value ratios exclude New Zealand and inward reinsurance policies.

⁽²⁾	Beginning in the third quarter of 2013, data from RP Data extended back to 1999. Previously, the data extended back to 2002. Previous periods were not re-presented for this change.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


Risk In-Force by Loan-To-Value Ratio⁽¹⁾	March 31, 2014						December 31, 2013
	Primary		Flow		Bulk		Primary		Flow		Bulk
Canada
95.01% and above	$	36,468	$	36,468	$	—	$	37,366	$	37,366	$	—
90.01% to 95.00%		24,835		24,833		2		25,591		25,589		2
80.01% to 90.00%		18,985		15,739		3,246		19,443		16,256		3,187
80.00% and below		21,888		3,032		18,856		21,896		3,114		18,782

Total Canada	$	102,176	$	80,072	$	22,104	$	104,296	$	82,325	$	21,971

Australia
95.01% and above	$	18,860	$	18,860	$	—	$	17,901	$	17,900	$	1
90.01% to 95.00%		23,525		23,517		8		22,139		22,131		8
80.01% to 90.00%		25,478		25,386		92		24,290		24,200		90
80.00% and below		30,489		23,375		7,114		29,425		22,430		6,995

Total Australia	$	98,352	$	91,138	$	7,214	$	93,755	$	86,661	$	7,094

Other Countries⁽²⁾
95.01% and above	$	629	$	629	$	—	$	593	$	593	$	—
90.01% to 95.00%		1,766		1,701		64		1,770		1,705		65
80.01% to 90.00%		1,052		772		280		1,047		763		284
80.00% and below		223		181		42		228		184		43

Total Other Countries	$	3,670	$	3,283	$	386	$	3,638	$	3,246	$	392

Amounts may not total due to rounding.

⁽¹⁾	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

⁽²⁾	Other Countries flow and primary risk in-force exclude $282 million and $316 million, respectively, of risk in-force in Europe ceded under quota share reinsurance agreements as of March 31, 2014 and December 31, 2013.

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

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

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	137		$	142		$	137		$	141		$	134		$	554
Net investment income		18			13			18			10			19			60
Net investment gains (losses)		—			—			—			—			—			—
Insurance and investment product fees and other		—			—			1			—			1			2

Total revenues		155			155			156			151			154			616

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		63			108			123			97			84			412
Acquisition and operating expenses, net of deferrals		33			35			35			35			39			144
Amortization of deferred acquisition costs and intangibles		2			1			2			2			1			6

Total benefits and expenses		98			144			160			134			124			562

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		57			11			(4	)		17			30			54
Provision (benefit) for income taxes		24			5			(1	)		4			9			17

INCOME (LOSS) FROM CONTINUING OPERATIONS		33			6			(3	)		13			21			37

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		—			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	33		$	6		$	(3	)	$	13		$	21		$	37

Effective tax rate (operating income (loss))		42.0	%		45.0	%		14.0	%		22.9	%		30.1	%		31.6	%

SALES:
New Insurance Written (NIW)
Flow	$	3,900		$	4,900		$	6,400		$	6,300		$	4,700		$	22,300
Bulk		—			—			—			—			—			—

Total U.S. Mortgage Insurance NIW	$	3,900		$	4,900		$	6,400		$	6,300		$	4,700		$	22,300

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	144		$	148		$	140		$	144		$	135		$	567

New Risk Written
Flow	$	960		$	1,196		$	1,577		$	1,478		$	1,091		$	5,342
Bulk		—			—			—			—			—			—

Total Primary		960			1,196			1,577			1,478			1,091			5,342
Pool		—			—			—			—			—			—

Total New Risk Written	$	960		$	1,196		$	1,577		$	1,478		$	1,091		$	5,342


Primary Insurance In-Force	$	109,100		$	109,300		$	109,000		$	108,800		$	109,300

Risk In-Force
Flow	$	26,405		$	26,327		$	26,194		$	25,957		$	25,626
Bulk⁽¹⁾		442			448			456			463			485

Total Primary		26,847			26,775			26,650			26,420			26,111
Pool		171			177			187			196			205

Total Risk In-Force	$	27,018		$	26,952		$	26,837		$	26,616		$	26,316


Primary Risk In-Force Subject To Captives		8	%		9	%		10	%		11	%		12	%

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

GAAP Basis Expense Ratio⁽²⁾		25	%		26	%		26	%		26	%		30	%		27	%

Adjusted Expense Ratio⁽³⁾		24	%		25	%		26	%		25	%		30	%		27	%

Flow Persistency		85	%		83	%		79	%		81	%		80	%

Gross Written Premiums Ceded To Captives/Total Direct Written Premiums		3	%		3	%		4	%		4	%		4	%

Risk To Capital Ratio⁽⁴⁾		18.7:1			19.5:1			22.4:1			22.4:1			24.2:1

Average Primary Loan Size (in thousands)	$	176		$	175		$	174		$	172		$	168

Estimated Savings For Loss Mitigation Activities⁽⁵⁾	$	114		$	124		$	136		$	144		$	159		$	563

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

⁽¹⁾	As of March 31, 2014, 84% of our bulk risk in-force was related to loans financed by lenders who participated in the mortgage programs sponsored by the Federal Home Loan Banks.

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

⁽³⁾	The ratio of an insurer’s general expenses to net written 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 insurer’s risk in-force to 25 times the total of the insurer’s policyholders’ surplus plus the statutory contingency reserve, commonly known as the “risk to capital” requirement. The U.S. mortgage insurance business maintains new business writing flexibility in all states, supported by risk to capital waivers or existing authority to write new business in all 50 states in its primary writing entity, which has maintained a risk to capital ratio below the maximum requirement since June 30, 2013. The current period risk to capital ratio is an estimate due to the timing of the filing of statutory statements and is prepared consistent with the presentation of the statutory financial statements in the combined annual statement of the U.S. mortgage insurance business.

⁽⁵⁾

Loss mitigation activities are defined as rescissions, cancellations, borrower loan modifications, repayment plans, lender- and borrower-titled pre-sales, claims administration and other loan workouts. Estimated savings related to rescissions are the reduction in carried loss reserves, net of premium refunds and reinstatement of prior rescissions. Estimated savings related to loan modifications and other cure related loss mitigation actions represent the reduction in carried loss reserves. Estimated savings related to claims mitigation activities represent amounts deducted or “curtailed” from claims due to acts or omissions by the servicer with respect to the servicing of an insured loan that is not in compliance with obligations under our master policy. For non-cure related actions, including pre-sales, the estimated savings represent the difference between the full claim obligation and the actual amount paid. Loans subject to our loss mitigation actions, the results of which have been included in our reported estimated loss mitigations savings, are subject to re-default and may result in a potential claim in future periods as well as potential future loss mitigation savings depending on the resolution of the re-defaulted loan.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Loss Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow
Direct	$	178		$	198		$	216		$	197		$	253		$	864
Assumed⁽¹⁾		6			8			9			12			13			42
Ceded		(15	)		(8	)		(9	)		(11	)		(17	)		(45	)
Loss adjustment expenses		5			6			6			6			6			24

Total Flow		174			204			222			204			255			885
Bulk		2			2			3			6			3			14

Total Primary		176			206			225			210			258			899
Pool		1			1			1			2			1			5

Total Paid Claims	$	177		$	207		$	226		$	212		$	259		$	904


Average Paid Claim (in thousands)	$	43.6		$	45.3		$	45.3		$	45.0		$	44.2

Average Direct Paid Claim (in thousands)⁽²⁾	$	44.5		$	43.5		$	43.5		$	42.3		$	43.5

Average Reserve Per Delinquency (in thousands)
Flow	$	30.3		$	29.4		$	29.6		$	30.0		$	29.8
Bulk loans with established reserve		19.2			19.7			20.0			20.8			21.9
Bulk loans with no reserve⁽³⁾		—			—			—			—			—

Reserves:
Flow direct case	$	1,172		$	1,277		$	1,377		$	1,471		$	1,566
Bulk direct case		25			27			28			29			33
Assumed⁽¹⁾		29			35			39			51			57
All other⁽⁴⁾		129			143			143			145			164

Total Reserves	$	1,355		$	1,482		$	1,587		$	1,696		$	1,820


Beginning Reserves	$	1,482		$	1,587		$	1,696		$	1,820		$	2,009		$	2,009
Paid claims		(192	)		(215	)		(235	)		(223	)		(276	)		(949	)
Increase in reserves		65			110			126			99			87			422

Ending Reserves	$	1,355		$	1,482		$	1,587		$	1,696		$	1,820		$	1,482


Beginning Reinsurance Recoverable⁽⁵⁾	$	44		$	50		$	56		$	66		$	80		$	80
Ceded paid claims		(15	)		(8	)		(9	)		(11	)		(17	)		(45	)
Increase in recoverable		2			2			3			1			3			9

Ending Reinsurance Recoverable	$	31		$	44		$	50		$	56		$	66		$	44

Loss Ratio⁽⁶⁾		46	%		76	%		90	%		70	%		62	%		74	%

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

⁽²⁾	Average direct paid claim excludes loss adjustment expenses, the impact of reinsurance and a negotiated servicer settlement.

⁽³⁾	Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes currently have no risk for claim.

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

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

⁽⁶⁾	The ratio of incurred losses to net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		43,733			49,255			52,509			55,413			59,789
Bulk loans with an established reserve		1,434			1,491			1,509			1,526			1,603
Bulk loans with no reserve⁽¹⁾		694			713			726			1,260			1,412

Total Number of Primary Delinquencies		45,861			51,459			54,744			58,199			62,804


Beginning Number of Primary Delinquencies		51,459			54,744			58,199			62,804			69,239			69,239
New delinquencies		12,100			13,205			14,105			13,192			15,060			55,562
Delinquency cures		(13,678	)		(11,974	)		(12,603	)		(13,127	)		(15,677	)		(53,381	)
Paid claims		(4,020	)		(4,516	)		(4,957	)		(4,670	)		(5,818	)		(19,961	)

Ending Number of Primary Delinquencies		45,861			51,459			54,744			58,199			62,804			51,459

Composition of Cures
Reported delinquent and cured-intraquarter		3,141			2,107			2,488			2,447			3,519
Number of missed payments delinquent prior to cure:
3 payments or less		7,252			6,253			6,291			6,748			8,125
4 - 11 payments		2,391			2,385			2,387			2,737			2,856
12 payments or more		894			1,229			1,437			1,195			1,177

Total		13,678			11,974			12,603			13,127			15,677

Primary Delinquencies by Missed Payment Status
3 payments or less		11,351			13,992			14,078			13,871			14,674
4 - 11 payments		11,463			12,410			13,134			14,503			16,804
12 payments or more		23,047			25,057			27,532			29,825			31,326

Primary Delinquencies		45,861			51,459			54,744			58,199			62,804


	March 31, 2014
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies		Direct Case Reserves⁽²⁾		Risk In-Force		Reserves as % of Risk In-Force
3 payments or less in default		10,863	$	77	$	437		18	%
4 - 11 payments in default		10,940		273		445		61	%
12 payments or more in default		21,930		822		1,088		76	%

Total		43,733	$	1,172	$	1,970		59	%


	December 31, 2013
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies		Direct Case Reserves⁽²⁾		Risk In-Force		Reserves as % of Risk In-Force
3 payments or less in default		13,436	$	121	$	523		23	%
4 - 11 payments in default		11,854		305		486		63	%
12 payments or more in default		23,965		851		1,178		72	%

Total		49,255	$	1,277	$	2,187		58	%

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2014			2013
	1Q			4Q			3Q			2Q			1Q
Risk In-Force by Credit Quality⁽¹⁾
Primary by FICO Scores >679		80	%		79	%		79	%		78	%		76	%
Primary by FICO Scores 620-679		16	%		17	%		17	%		18	%		19	%
Primary by FICO Scores 575-619		3	%		3	%		3	%		3	%		4	%
Primary by FICO Scores <575		1	%		1	%		1	%		1	%		1	%

Flow by FICO Scores >679		80	%		79	%		79	%		77	%		76	%
Flow by FICO Scores 620-679		16	%		17	%		17	%		19	%		19	%
Flow by FICO Scores 575-619		3	%		3	%		3	%		3	%		4	%
Flow by FICO Scores <575		1	%		1	%		1	%		1	%		1	%

Bulk by FICO Scores >679		89	%		89	%		89	%		89	%		89	%
Bulk by FICO Scores 620-679		9	%		9	%		9	%		9	%		9	%
Bulk by FICO Scores 575-619		1	%		1	%		1	%		1	%		1	%
Bulk by FICO Scores <575		1	%		1	%		1	%		1	%		1	%

Primary A minus		3	%		3	%		3	%		3	%		4	%
Primary sub-prime⁽²⁾		2	%		2	%		2	%		3	%		3	%
Primary Loans
Primary loans in-force		618,442			624,236			627,536			633,685			649,570
Primary delinquent loans		45,861			51,459			54,744			58,199			62,804
Primary delinquency rate		7.42	%		8.24	%		8.72	%		9.18	%		9.67	%

Flow loans in-force		582,553			586,546			589,703			590,949			590,051
Flow delinquent loans		43,733			49,255			52,509			55,413			59,789
Flow delinquency rate		7.51	%		8.40	%		8.90	%		9.38	%		10.13	%

Bulk loans in-force		35,889			37,690			37,833			42,736			59,519
Bulk delinquent loans		2,128			2,204			2,235			2,786			3,015
Bulk delinquency rate		5.93	%		5.85	%		5.91	%		6.52	%		5.07	%

A minus and sub-prime loans in-force		37,714			39,307			41,081			42,993			44,873
A minus and sub-prime delinquent loans		8,789			10,023			10,548			10,803			11,484
A minus and sub-prime delinquency rate		23.30	%		25.50	%		25.68	%		25.13	%		25.59	%

Pool Loans
Pool loans in-force		10,710			11,354			11,657			12,063			12,558
Pool delinquent loans		575			628			670			634			674
Pool delinquency rate		5.37	%		5.53	%		5.75	%		5.26	%		5.37	%

⁽¹⁾	Loans with unknown FICO scores are included in the 620-679 category.

⁽²⁾	Excludes loans classified as A minus.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	March 31, 2014									December 31, 2013									March 31, 2013
	% of Total Reserves⁽¹⁾			% of Primary Risk In-Force			Primary Delinquency Rate			% of Total Reserves⁽¹⁾			% of Primary Risk In-Force			Primary Delinquency Rate			% of Total Reserves⁽¹⁾			% of Primary Risk In-Force			Primary Delinquency Rate
By Region
Southeast⁽²⁾		31	%		20	%		9.85	%		32	%		20	%		11.02	%		34	%		21	%		13.46	%
South Central⁽³⁾		8			16			5.10	%		8			16			5.85	%		9			16			6.79	%
Northeast⁽⁴⁾		23			15			11.60	%		20			15			12.30	%		16			15			12.73	%
Pacific⁽⁵⁾		10			12			5.77	%		11			12			6.47	%		13			12			8.73	%
North Central⁽⁶⁾		10			11			6.59	%		11			11			7.39	%		11			11			8.99	%
Great Lakes⁽⁷⁾		6			10			5.33	%		6			10			6.03	%		6			9			7.17	%
New England⁽⁸⁾		5			6			7.15	%		4			6			7.74	%		4			6			9.12	%
Mid-Atlantic⁽⁹⁾		5			5			7.32	%		5			5			8.18	%		4			5			9.41	%
Plains⁽¹⁰⁾		2			5			4.76	%		3			5			5.46	%		3			5			5.99	%

Total		100	%		100	%		7.42	%		100	%		100	%		8.24	%		100	%		100	%		9.67	%


By State
California		4	%		7	%		3.78	%		4	%		7	%		4.27	%		5	%		6	%		6.26	%
Texas		3	%		7	%		4.89	%		3	%		7	%		5.68	%		3	%		7	%		6.03	%
New York		11	%		7	%		11.34	%		9	%		7	%		11.90	%		7	%		7	%		11.54	%
Florida		22	%		6	%		17.49	%		22	%		6	%		19.50	%		23	%		7	%		24.46	%
Illinois		7	%		5	%		8.73	%		7	%		5	%		9.67	%		8	%		5	%		13.02	%
New Jersey		9	%		4	%		16.27	%		8	%		4	%		16.76	%		6	%		4	%		18.53	%
Pennsylvania		3	%		4	%		8.67	%		3	%		4	%		9.73	%		3	%		4	%		10.42	%
Georgia		3	%		4	%		7.37	%		3	%		4	%		8.48	%		3	%		4	%		10.63	%
North Carolina		2	%		4	%		6.58	%		2	%		4	%		7.43	%		3	%		4	%		9.24	%
Ohio		2	%		4	%		6.01	%		2	%		4	%		6.69	%		2	%		3	%		7.51	%

⁽¹⁾	Total reserves were $1,355 million, $1,482 million and $1,820 million as of March 31, 2014, December 31, 2013 and March 31, 2013, respectively.

⁽²⁾	Alabama, Arkansas, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.

⁽³⁾	Arizona, Colorado, Louisiana, New Mexico, Oklahoma, Texas and Utah.

⁽⁴⁾	New Jersey, New York and Pennsylvania.

⁽⁵⁾	Alaska, California, Hawaii, Nevada, Oregon and Washington.

⁽⁶⁾	Illinois, Minnesota, Missouri and Wisconsin.

⁽⁷⁾	Indiana, Kentucky, Michigan and Ohio.

⁽⁸⁾	Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.

⁽⁹⁾	Delaware, Maryland, Virginia, Washington D.C. and West Virginia.

⁽¹⁰⁾	Idaho, Iowa, Kansas, Montana, Nebraska, North Dakota, South Dakota and Wyoming.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	March 31, 2014					December 31, 2013					March 31, 2013
	Primary Risk In-Force		Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate
Lender concentration (by original applicant)	$	26,847		7.42	%	$	26,775		8.24	%	$	26,111		9.67	%
Top 10 lenders		12,450		8.41	%		12,603		9.36	%		12,720		11.54	%
Top 20 lenders		14,337		8.32	%		14,447		9.26	%		14,408		11.17	%

Loan-to-value ratio
95.01% and above	$	7,267		9.24	%	$	7,377		10.40	%	$	7,340		11.78	%
90.01% to 95.00%		10,187		6.57	%		9,966		7.41	%		9,258		9.23	%
80.01% to 90.00%		8,999		7.30	%		9,032		7.96	%		9,084		9.77	%
80.00% and below		394		3.59	%		400		3.69	%		429		3.62	%

Total	$	26,847		7.42	%	$	26,775		8.24	%	$	26,111		9.67	%

Loan grade
Prime	$	25,446		6.38	%	$	25,320		7.08	%	$	24,490		8.49	%
A minus and sub-prime		1,401		23.30	%		1,455		25.50	%		1,621		25.59	%

Total	$	26,847		7.42	%	$	26,775		8.24	%	$	26,111		9.67	%

Loan type⁽¹⁾
First mortgages
Fixed rate mortgage
Flow	$	26,090		7.30	%	$	25,996		8.18	%	$	25,228		9.89	%
Bulk		427		5.66	%		432		5.58	%		467		4.86	%
Adjustable rate mortgage
Flow		315		27.84	%		331		29.08	%		398		28.54	%
Bulk		15		14.48	%		16		14.37	%		18		14.17	%
Second mortgages		—		—	%		—		—	%		—		—	%

Total	$	26,847		7.42	%	$	26,775		8.24	%	$	26,111		9.67	%

Type of documentation
Alt-A
Flow	$	453		30.16	%	$	475		30.82	%	$	559		33.09	%
Bulk		30		11.88	%		30		12.44	%		34		6.29	%
Standard⁽²⁾
Flow		25,952		7.15	%		25,852		8.03	%		25,067		9.69	%
Bulk		412		5.56	%		418		5.45	%		451		4.89	%

Total	$	26,847		7.42	%	$	26,775		8.24	%	$	26,111		9.67	%

Mortgage term
15 years and under	$	1,118		0.77	%	$	1,111		0.86	%	$	899		1.18	%
More than 15 years		25,729		7.91	%		25,664		8.79	%		25,212		10.29	%

Total	$	26,847		7.42	%	$	26,775		8.24	%	$	26,111		9.67	%

⁽¹⁾	For loan type in this table, any loan with an interest rate that is fixed for an initial term of five years or more is categorized as a fixed rate mortgage.

⁽²⁾	Standard also includes loans with reduced or different documentation requirements that meet specifications of GSE approved underwriting systems with historical and expected delinquency rates consistent with our standard portfolio.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	March 31, 2014
Policy Year	Average Rate⁽¹⁾			% of Total Reserves⁽²⁾			Primary Insurance In-Force			% of Total			Primary Risk In-Force		% of Total			Deliquency Rate
2003 and prior		6.43	%		7.5	%	$	4,401			4.0	%	$	1,013		3.8	%		15.07	%
2004		5.75	%		5.2			2,814			2.5			672		2.5			12.47	%
2005		5.72	%		12.5			5,448			5.0			1,448		5.4			14.63	%
2006		5.98	%		18.0			8,161			7.5			2,067		7.7			14.80	%
2007		5.92	%		37.5			19,231			17.6			4,816		17.9			13.76	%
2008		5.45	%		17.5			17,237			15.8			4,346		16.2			7.48	%
2009		4.99	%		0.6			3,227			3.0			716		2.7			1.67	%
2010		4.69	%		0.5			4,213			3.9			978		3.6			1.10	%
2011		4.48	%		0.4			5,672			5.2			1,389		5.2			0.78	%
2012		3.77	%		0.2			13,463			12.3			3,287		12.2			0.23	%
2013		3.95	%		0.1			21,358			19.6			5,159		19.2			0.08	%
2014		4.50	%		—			3,891			3.6			956		3.6			0.02	%

Total		5.13	%		100.0	%	$	109,116			100.0	%	$	26,847		100.0	%		7.42	%


	March 31, 2014						December 31, 2013
Occupancy and Property Type	% of Primary Risk In-Force			Deliquency Rate			% of Primary Risk In-Force			Deliquency Rate
Occupancy Status
Primary residence		94.6	%		7.34	%		94.5	%		8.19	%
Second home		2.8			8.09	%		2.9			8.63	%
Non-owner occupied		2.6			8.60	%		2.6			9.17	%

Total		100.0	%		7.42	%		100.0	%		8.24	%

Property Type
Single family detached		88.2	%		7.12	%		88.1	%		7.95	%
Condominium and co-operative		10.1			8.59	%		10.2			9.45	%
Multi-family and other		1.7			14.81	%		1.7			15.39	%

Total		100.0	%		7.42	%		100.0	%		8.24	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $1,355 million as of March 31, 2014.

Corporate and Other Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Loss—Corporate and Other Division

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	176		$	159		$	160		$	156		$	166		$	641
Net investment income		53			67			53			68			69			257
Net investment gains (losses)		(17	)		19			(24	)		(9	)		(52	)		(66	)
Insurance and investment product fees and other		54			55			56			53			100			264

Total revenues		266			300			245			268			283			1,096

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		54			48			49			51			43			191
Interest credited		29			30			28			29			32			119
Acquisition and operating expenses, net of deferrals		135			135			162			140			179			616
Amortization of deferred acquisition costs and intangibles		42			35			28			38			18			119
Interest expense		98			89			90			89			94			362

Total benefits and expenses		358			337			357			347			366			1,407

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(92	)		(37	)		(112	)		(79	)		(83	)		(311	)
Benefit for income taxes		(50	)		(14	)		(22	)		(28	)		(26	)		(90	)

LOSS FROM CONTINUING OPERATIONS		(42	)		(23	)		(90	)		(51	)		(57	)		(221	)
Income (loss) from discontinued operations, net of taxes		—			—			2			6			(20	)		(12	)

NET LOSS		(42	)		(23	)		(88	)		(45	)		(77	)		(233	)

ADJUSTMENTS TO NET LOSS:
Net investment (gains) losses, net of taxes and other adjustments		10			(10	)		11			—			21			22
(Gains) losses on early extinguishment of debt, net of taxes		—			—			20			—			—			20
Expenses related to restructuring, net of taxes		—			—			—			3			—			3
(Income) loss from discontinued operations, net of taxes		—			—			(2	)		(6	)		20			12

NET OPERATING LOSS	$	(32	)	$	(33	)	$	(59	)	$	(48	)	$	(36	)	$	(176	)


Effective tax rate (operating loss)		57.5	%		37.5	%		8.1	%		35.9	%		28.2	%		27.4	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Three months ended March 31, 2014	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	175		$	1		$	—		$	176
Net investment income		30			32			(9	)		53
Net investment gains (losses)		1			(13	)		(5	)		(17	)
Insurance and investment product fees and other		1			53			—			54

Total revenues		207			73			(14	)		266

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		46			8			—			54
Interest credited		—			29			—			29
Acquisition and operating expenses, net of deferrals		109			20			6			135
Amortization of deferred acquisition costs and intangibles		30			11			1			42
Interest expense		15			—			83			98

Total benefits and expenses		200			68			90			358

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		7			5			(104	)		(92	)
Benefit for income taxes		(1	)		—			(49	)		(50	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		8			5			(55	)		(42	)

NET INCOME (LOSS)		8			5			(55	)		(42	)

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net of taxes and other adjustments		(1	)		7			4			10

NET OPERATING INCOME (LOSS)	$	7		$	12		$	(51	)	$	(32	)


Effective tax rate (operating income (loss))		-22.3	%		25.1	%		47.8	%		57.5	%


Three months ended March 31, 2013	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	165		$	1		$	—		$	166
Net investment income		33			34			2			69
Net investment gains (losses)		6			(48	)		(10	)		(52	)
Insurance and investment product fees and other		1			56			43			100

Total revenues		205			43			35			283

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		39			4			—			43
Interest credited		—			32			—			32
Acquisition and operating expenses, net of deferrals		110			20			49			179
Amortization of deferred acquisition costs and intangibles		28			(13	)		3			18
Interest expense		14			—			80			94

Total benefits and expenses		191			43			132			366

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		14			—			(97	)		(83	)
Provision (benefit) for income taxes		4			3			(33	)		(26	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		10			(3	)		(64	)		(57	)
Loss from discontinued operations, net of taxes		—			—			(20	)		(20	)

NET INCOME (LOSS)		10			(3	)		(84	)		(77	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net of taxes and other adjustments		(4	)		19			6			21
Loss from discontinued operations, net of taxes		—			—			20			20

NET OPERATING INCOME (LOSS)	$	6		$	16		$	(58	)	$	(36	)


Effective tax rate (operating income (loss))		26.1	%		44.8	%		33.5	%		28.2	%

⁽¹⁾	Includes inter-segment eliminations and non-core products.

International Protection Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income and Sales—International Protection Segment

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	175		$	158		$	159		$	154		$	165		$	636
Net investment income		30			29			26			31			33			119
Net investment gains (losses)		1			4			1			16			6			27
Insurance and investment product fees and other		1			1			1			1			1			4

Total revenues		207			192			187			202			205			786

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		46			39			40			41			39			159
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		109			107			106			110			110			433
Amortization of deferred acquisition costs and intangibles		30			27			25			26			28			106
Interest expense		15			8			9			11			14			42

Total benefits and expenses		200			181			180			188			191			740

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		7			11			7			14			14			46
Provision (benefit) for income taxes		(1	)		(5	)		3			5			4			7

INCOME FROM CONTINUING OPERATIONS		8			16			4			9			10			39

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		(1	)		(3	)		—			(11	)		(4	)		(18	)
Expenses related to restructuring, net of taxes		—			—			—			3			—			3

NET OPERATING INCOME⁽¹⁾	$	7		$	13		$	4		$	1		$	6		$	24



Effective tax rate (operating income)		-22.3	%		-95.6	%		36.7	%		38.7	%		26.1	%		-5.1	%

Net Premiums Written
Northern Europe	$	115		$	104		$	113		$	106		$	106		$	429
Southern Europe		108			72			71			74			78			295
Structured Deals⁽²⁾		30			37			37			49			28			151
New Markets		11			9			9			14			21			53

Pre-Deposit Accounting Basis⁽³⁾		264			222			230			243			233			928

Deposit Accounting Adjustments		68			70			76			94			80			320

Total⁽⁴⁾	$	196		$	152		$	154		$	149		$	153		$	608


Loss Ratio		26	%		25	%		25	%		26	%		24	%		25	%

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⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Protection segment was $7 million for the three months ended March 31, 2014.

⁽²⁾	Structured deals represent in-force blocks of business acquired through reinsurance arrangements and ongoing reciprocal arrangements in place with certain clients.

⁽³⁾

This business has reinsurance agreements that do not qualify for risk transfer under GAAP. This analysis shows the net premiums written activity as if these reinsurance agreements, except for the reciprocal arrangements, were accounted for as reinsurance accounting (“pre-deposit accounting basis”) and not as deposit accounting. While this is a non-GAAP measure, management believes that “net premiums written on a pre-deposit accounting basis” represent an economic view of written premiums and enhances the understanding of the underlying performance of the business. However, net premiums written on a pre-deposit accounting basis as defined by the company should not be viewed as a substitute for GAAP net premiums written.

⁽⁴⁾	Net premiums written adjusted for foreign exchange as compared to the prior year period for the International Protection segment were $193 million for the three months ended March 31, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income (Pre-Deposit Accounting Basis)—International Protection Segment

(amounts in millions)


	1Q 2014
	Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis
REVENUES:
Premiums	$	175		$	43		$	218
Net investment income		30			(10	)		20
Net investment gains (losses)		1			—			1
Insurance and investment product fees and other		1			—			1

Total revenues		207			33			240

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		46			20			66
Interest credited		—			—			—
Acquisition and operating expenses, net of deferrals		109			9			118
Amortization of deferred acquisition costs and intangibles		30			10			40
Interest expense		15			(6	)		9

Total benefits and expenses		200			33			233

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		7			—			7
Provision (benefit) for income taxes		(1	)		—			(1	)

INCOME FROM CONTINUING OPERATIONS		8			—			8

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		(1	)		—			(1	)

NET OPERATING INCOME⁽¹⁾	$	7		$	—		$	7

Effective tax rate (operating income)		-22.3	%					-22.3	%

Other Metrics:
Premiums	$	175		$	43		$	218
Benefits and other changes in policy reserves		46			20			66
Commissions⁽²⁾		81			9			90

Margin before profit sharing		48			14			62
Profit share⁽²⁾		19			9			28

Underwriting profit⁽³⁾	$	29		$	5		$	34


Loss Ratio		26	%					30	%

Underwriting Margin⁽³⁾		17	%					16	%

Combined Ratio⁽⁴⁾		106	%					103	%

This page is provided as supplemental analysis related to the lifestyle protection insurance business. This business has reinsurance agreements that do not qualify for risk transfer under GAAP. This analysis shows the income statement activity as if these reinsurance agreements, except for the reciprocal arrangements, were accounted for as reinsurance accounting (“pre-deposit accounting basis”) and not as deposit accounting. There is no impact on net income available to Genworth Financial, Inc.’s common stockholders or to segment net operating income. While “pre-deposit accounting basis” is a non-GAAP measure, management believes that it represents an economic view of the underlying performance of the business. However, pre-deposit accounting basis as defined by the company should not be viewed as a substitute for GAAP.

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

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Protection segment was $7 million for the three months ended March 31, 2014.

⁽²⁾	Commissions include commissions which are included above in acquisition and operating expenses, net of deferrals, and amortization of DAC.

⁽³⁾	The underwriting margin is calculated as underwriting profit divided by net earned premiums.

⁽⁴⁾	The combined ratio is calculated as benefits and other changes in policy reserves, commissions (including amortization of DAC), profit share and other operating expenses divided by net earned premiums.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income (Pre-Deposit Accounting Basis)—International Protection Segment

(amounts in millions)


	4Q 2013									3Q 2013									2Q 2013									1Q 2013									Total 2013
	Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis
REVENUES:
Premiums	$	158		$	43		$	201		$	159		$	47		$	206		$	154		$	52		$	206		$	165		$	62		$	227		$	636		$	204		$	840
Net investment income		29			(8	)		21			26			(6	)		20			31			(9	)		22			33			(11	)		22			119			(34	)		85
Net investment gains (losses)		4			—			4			1			—			1			16			—			16			6			—			6			27			—			27
Insurance and investment product fees and other		1			—			1			1			—			1			1			—			1			1			—			1			4			—			4

Total revenues		192			35			227			187			41			228			202			43			245			205			51			256			786			170			956

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		39			15			54			40			22			62			41			21			62			39			33			72			159			91			250
Interest credited		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		107			11			118			106			6			112			110			13			123			110			9			119			433			39			472
Amortization of deferred acquisition costs and intangibles		27			8			35			25			13			38			26			11			37			28			14			42			106			46			152
Interest expense		8			1			9			9			—			9			11			(2	)		9			14			(5	)		9			42			(6	)		36

Total benefits and expenses		181			35			216			180			41			221			188			43			231			191			51			242			740			170			910

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		11			—			11			7			—			7			14			—			14			14			—			14			46			—			46
Provision (benefit) for income taxes		(5	)		—			(5	)		3			—			3			5			—			5			4			—			4			7			—			7

INCOME FROM CONTINUING OPERATIONS		16			—			16			4			—			4			9			—			9			10			—			10			39			—			39

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		(3	)		—			(3	)		—			—			—			(11	)		—			(11	)		(4	)		—			(4	)		(18	)		—			(18	)
Expenses related to restructuring, net of taxes		—			—			—			—			—			—			3			—			3			—			—			—			3			—			3

NET OPERATING INCOME	$	13		$	—		$	13		$	4		$	—		$	4		$	1		$	—		$	1		$	6		$	—		$	6		$	24		$	—		$	24

Effective tax rate (operating income)		-95.6	%					-95.6	%		36.7	%					36.7	%		38.7	%					38.7	%		26.1	%					26.1	%		-5.1	%					-5.1	%

Other Metrics:
Premiums	$	158		$	43		$	201		$	159		$	47		$	206		$	154		$	52		$	206		$	165		$	62		$	227		$	636		$	204		$	840
Benefits and other changes in policy reserves		39			15			54			40			22			62			41			21			62			39			33			72			159			91			250
Commissions⁽¹⁾		74			10			84			75			12			87			75			11			86			80			12			92			304			45			349

Margin before profit sharing		45			18			63			44			13			57			38			20			58			46			17			63			173			68			241
Profit share⁽¹⁾		20			10			30			18			8			26			18			13			31			18			11			29			74			42			116

Underwriting profit⁽²⁾	$	25		$	8		$	33		$	26		$	5		$	31		$	20		$	7		$	27		$	28		$	6		$	34		$	99		$	26		$	125


Loss Ratio		25	%					27	%		25	%					30	%		26	%					30	%		24	%					32	%		25	%					30	%

Underwriting Margin⁽²⁾		16	%					16	%		16	%					15	%		13	%					13	%		17	%					15	%		16	%					15	%

Combined Ratio⁽³⁾		109	%					103	%		108	%					103	%		115	%					108	%		107	%					103	%		110	%					104	%

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

⁽¹⁾	Commissions include commissions which are included above in acquisition and operating expenses, net of deferrals, and amortization of DAC.

⁽²⁾	The underwriting margin is calculated as underwriting profit divided by net earned premiums.

⁽³⁾	The combined ratio is calculated as benefits and other changes in policy reserves, commissions (including amortization of DAC), profit share and other operating expenses divided by net earned premiums.

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Income—Runoff Segment

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	1		$	1		$	1		$	2		$	1		$	5
Net investment income		32			38			33			34			34			139
Net investment gains (losses)		(13	)		24			(14	)		(20	)		(48	)		(58	)
Insurance and investment product fees and other		53			54			53			53			56			216

Total revenues		73			117			73			69			43			302

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		8			9			9			10			4			32
Interest credited		29			30			28			29			32			119
Acquisition and operating expenses, net of deferrals		20			21			18			22			20			81
Amortization of deferred acquisition costs and intangibles		11			9			2			8			(13	)		6
Interest expense		—			1			—			1			—			2

Total benefits and expenses		68			70			57			70			43			240

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		5			47			16			(1	)		—			62
Provision (benefit) for income taxes		—			15			(5	)		—			3			13

INCOME (LOSS) FROM CONTINUING OPERATIONS		5			32			21			(1	)		(3	)		49

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net of taxes and other adjustments		7			(13	)		4			7			19			17

NET OPERATING INCOME	$	12		$	19		$	25		$	6		$	16		$	66


Effective tax rate (operating income)		25.1	%		28.1	%		-6.9	%		40.9	%		44.8	%		25.5	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Selected Operating Performance Measures—Runoff Segment

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
Variable Annuities—Income Distribution Series
Account value, beginning of the period	$	6,061		$	6,044		$	5,983		$	6,202		$	6,141		$	6,141
Deposits		16			19			19			18			20			76
Surrenders, benefits and product charges		(198	)		(212	)		(186	)		(183	)		(173	)		(754	)

Net flows		(182	)		(193	)		(167	)		(165	)		(153	)		(678	)
Interest credited and investment performance		111			210			228			(54	)		214			598

Account value, end of the period		5,990			6,061			6,044			5,983			6,202			6,061

Traditional Variable Annuities
Account value, net of reinsurance, beginning of the period		1,643			1,620			1,601			1,674			1,662			1,662
Deposits		3			4			4			2			3			13
Surrenders, benefits and product charges		(78	)		(71	)		(67	)		(80	)		(81	)		(299	)

Net flows		(75	)		(67	)		(63	)		(78	)		(78	)		(286	)
Interest credited and investment performance		30			90			82			5			90			267

Account value, net of reinsurance, end of the period		1,598			1,643			1,620			1,601			1,674			1,643

Variable Life Insurance
Account value, beginning of the period		316			302			293			301			292			292
Deposits		2			3			2			2			2			9
Surrenders, benefits and product charges		(11	)		(9	)		(10	)		(11	)		(9	)		(39	)

Net flows		(9	)		(6	)		(8	)		(9	)		(7	)		(30	)
Interest credited and investment performance		6			20			17			1			16			54

Account value, end of the period		313			316			302			293			301			316

Total	$	7,901		$	8,020		$	7,966		$	7,877		$	8,177		$	8,020


Guaranteed Investment Contracts, Funding Agreements Backing Notes and Funding Agreements
Account value, beginning of the period	$	896		$	1,036		$	1,077		$	1,970		$	2,153		$	2,153
Surrenders and benefits		(7	)		(142	)		(43	)		(900	)		(167	)		(1,252	)

Net flows		(7	)		(142	)		(43	)		(900	)		(167	)		(1,252	)
Interest credited		2			2			2			7			15			26
Foreign currency translation		—			—			—			—			(31	)		(31	)

Account value, end of the period	$	891		$	896		$	1,036		$	1,077		$	1,970		$	896

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		(9	)		—			(6	)		3			2			(1	)
Net investment gains (losses)		(5	)		(9	)		(11	)		(5	)		(10	)		(35	)
Insurance and investment product fees and other		—			—			2			(1	)		43			44

Total revenues		(14	)		(9	)		(15	)		(3	)		35			8


BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			—			—			—			—			—
Interest credited		—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		6			7			38			8			49			102
Amortization of deferred acquisition costs and intangibles		1			(1	)		1			4			3			7
Interest expense		83			80			81			77			80			318

Total benefits and expenses		90			86			120			89			132			427

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(104	)		(95	)		(135	)		(92	)		(97	)		(419	)
Benefit for income taxes		(49	)		(24	)		(20	)		(33	)		(33	)		(110	)

LOSS FROM CONTINUING OPERATIONS		(55	)		(71	)		(115	)		(59	)		(64	)		(309	)
Income (loss) from discontinued operations, net of taxes⁽²⁾		—			—			2			6			(20	)		(12	)

NET LOSS		(55	)		(71	)		(113	)		(53	)		(84	)		(321	)

ADJUSTMENTS TO NET LOSS:
Net investment (gains) losses, net of taxes and other adjustments		4			6			7			4			6			23
(Gains) losses on early extinguishment of debt, net of taxes		—			—			20			—			—			20
(Income) loss from discontinued operations, net of taxes		—			—			(2	)		(6	)		20			12

NET OPERATING LOSS	$	(51	)	$	(65	)	$	(88	)	$	(55	)	$	(58	)	$	(266	)


Effective tax rate (operating loss)		47.8	%		24.8	%		6.3	%		36.7	%		33.5	%		24.9	%

⁽¹⁾	Includes inter-segment eliminations and non-core products.

⁽²⁾	Operating results associated with discontinued operations related to the wealth management business prior to the sale on August 30, 2013.

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Investments Summary

(amounts in millions)


		March 31, 2014					December 31, 2013					September 30, 2013					June 30, 2013					March 31, 2013
		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		$	35,526		48	%	$	34,666		48	%	$	35,503		49	%	$	34,486		48	%	$	36,577		48	%
Private fixed maturity securities			11,125		15			10,563		15			10,277		14			10,368		14			10,572		14
Residential mortgage-backed securities⁽¹⁾			4,945		7			5,069		7			5,187		7			5,282		7			5,551		7
Commercial mortgage-backed securities			2,656		4			2,639		4			2,520		4			2,533		4			2,731		4
Other asset-backed securities			3,343		4			3,119		4			2,992		4			2,655		4			2,572		3
Tax-exempt			317		—			295		—			263		—			262		—			270		—
Non-investment grade fixed maturity securities			2,332		3			2,278		3			2,344		3			2,422		3			2,809		4
Equity securities:
Common stocks and mutual funds			260		—			258		—			303		1			332		1			401		1
Preferred stocks			89		—			83		—			76		—			79		—			89		—
Commercial mortgage loans			5,894		8			5,899		8			5,858		8			5,831		8			5,866		8
Restricted commercial mortgage loans related to securitization entities			227		—			233		—			290		—			309		—			324		—
Policy loans			1,438		2			1,434		2			1,668		2			1,671		2			1,606		2
Cash, cash equivalents and short-term investments			4,492		6			4,434		6			3,767		5			3,777		5			4,104		5
Securities lending			261		—			187		—			154		—			163		—			183		—
Other invested assets:	Limited partnerships		267		—			282		1			297		1			318		1			326		1
	Derivatives:
	Long-term care (LTC) forward starting swap—cash flow		137		—			79		—			147		—			166		—			353		—
	Other cash flow		30		—			46		—			3		—			3		—			9		—
	Fair value		—		—			1		—			1		—			1		—			4		—
	Equity index options—non-qualified		11		—			13		—			6		—			13		—			17		—
	Other non-qualified		352		1			332		1			370		1			397		1			554		1
	Trading portfolio		247		—			239		—			278		—			287		—			468		1
	Counterparty collateral		355		1			199		—			272		—			377		1			615		1
	Restricted other invested assets related to securitization entities		398		1			391		1			392		1			392		1			399		—
	Other		83		—			88		—			85		—			87		—			146		—

Total invested assets and cash		$	74,785		100	%	$	72,827		100	%	$	73,053		100	%	$	72,211		100	%	$	76,546		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	15,338		34	%	$	15,148		34	%	$	15,859		35	%	$	15,928		36	%	$	17,050		36	%
AA			4,759		10			4,627		11			4,776		11			4,204		10			4,664		10
A			12,920		29			12,488		28			12,674		28			12,530		28			13,133		28
BBB			10,847		24			10,720		24			10,426		23			10,044		23			10,345		22
BB			1,251		3			1,148		3			1,134		3			1,096		3			1,260		3
B			87		—			132		—			128		—			145		—			135		—
CCC and lower			114		—			112		—			130		—			182		—			257		1

Total public fixed maturity securities		$	45,316		100	%	$	44,375		100	%	$	45,127		100	%	$	44,129		100	%	$	46,844		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	1,554		10	%	$	1,483		11	%	$	1,453		10	%	$	1,326		10	%	$	1,354		10	%
AA			1,661		11			1,570		11			1,551		11			1,499		11			1,462		10
A			4,593		31			4,331		30			4,247		31			4,198		30			4,419		31
BBB			6,240		42			5,984		42			5,756		41			5,857		42			5,846		41
BB			740		5			736		5			798		6			819		6			886		6
B			57		—			56		—			63		—			83		—			154		1
CCC and lower			83		1			94		1			91		1			97		1			117		1

Total private fixed maturity securities		$	14,928		100	%	$	14,254		100	%	$	13,959		100	%	$	13,879		100	%	$	14,238		100	%

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

⁽²⁾	Nationally Recognized Statistical Rating Organizations.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Fixed Maturity Securities Summary

(amounts in millions)


	March 31, 2014					December 31, 2013					September 30, 2013					June 30, 2013					March 31, 2013
	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	$	5,214		9	%	$	4,810		8	%	$	5,325		9	%	$	5,048		9	%	$	5,381		9	%
Tax-exempt		317		—			295		—			263		—			262		—			270		—
Foreign government		2,153		4			2,146		4			2,232		4			2,247		4			2,345		4
U.S. corporate		26,060		43			25,035		43			24,782		42			24,742		43			25,936		43
Foreign corporate		15,141		25			15,071		26			15,276		26			14,618		25			15,540		25
Residential mortgage-backed securities		5,102		8			5,225		9			5,397		9			5,590		10			5,942		10
Commercial mortgage-backed securities		2,881		5			2,898		5			2,790		5			2,814		5			3,056		5
Other asset-backed securities		3,376		6			3,149		5			3,021		5			2,687		4			2,612		4

Total fixed maturity securities	$	60,244		100	%	$	58,629		100	%	$	59,086		100	%	$	58,008		100	%	$	61,082		100	%

Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	7,506		19	%	$	7,382		19	%	$	7,344		19	%	$	7,167		19	%	$	7,746		20	%
Utilities and energy		9,494		24			9,213		24			9,084		24			9,097		24			9,438		24
Consumer—non-cyclical		4,837		12			4,669		12			4,722		12			4,674		12			4,979		13
Consumer—cyclical		2,337		6			2,282		6			2,185		6			2,157		6			2,217		6
Capital goods		2,335		6			2,238		6			2,276		6			2,332		6			2,460		6
Industrial		2,734		7			2,595		7			2,592		7			2,507		7			2,546		6
Technology and communications		2,978		8			2,867		8			2,928		8			2,864		8			2,916		7
Transportation		1,653		4			1,595		4			1,593		4			1,550		4			1,581		4
Other		5,469		14			5,471		14			5,534		14			5,245		14			5,650		14

Subtotal		39,343		100	%		38,312		100	%		38,258		100	%		37,593		100	%		39,533		100	%

Non-Investment Grade:
Finance and insurance		332		18	%		337		19	%		376		21	%		376		21	%		413		21	%
Utilities and energy		335		18			297		16			338		19			332		19			372		19
Consumer—non-cyclical		229		12			194		11			170		9			186		11			161		8
Consumer—cyclical		60		3			71		4			107		6			107		6			119		6
Capital goods		291		15			295		16			272		15			250		14			247		13
Industrial		254		14			267		15			243		14			236		13			322		17
Technology and communications		330		18			316		18			257		14			234		13			241		12
Transportation		15		1			5		—			26		1			29		2			53		3
Other		12		1			12		1			11		1			17		1			15		1

Subtotal		1,858		100	%		1,794		100	%		1,800		100	%		1,767		100	%		1,943		100	%

Total	$	41,201		100	%	$	40,106		100	%	$	40,058		100	%	$	39,360		100	%	$	41,476		100	%

Fixed Maturity Securities—Contractual Maturity Dates:
Due in one year or less	$	3,118		5	%	$	2,974		5	%	$	2,772		5	%	$	2,670		4	%	$	2,731		4	%
Due after one year through five years		10,257		17			10,187		17			10,563		18			10,313		18			10,997		18
Due after five years through ten years		12,915		21			12,526		22			12,570		21			11,880		20			12,243		20
Due after ten years		22,595		38			21,670		37			21,973		37			22,054		38			23,501		39

Subtotal		48,885		81			47,357		81			47,878		81			46,917		80			49,472		81
Mortgage and asset-backed securities		11,359		19			11,272		19			11,208		19			11,091		20			11,610		19

Total fixed maturity securities	$	60,244		100	%	$	58,629		100	%	$	59,086		100	%	$	58,008		100	%	$	61,082		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Commercial Mortgage Loans Summary

(amounts in millions)


	March 31, 2014						December 31, 2013						September 30, 2013						June 30, 2013						March 31, 2013
	Carrying Amount			% of Total			Carrying Amount			% of Total			Carrying Amount			% of Total			Carrying Amount			% of Total			Carrying Amount			% of Total
Geographic Region
Pacific	$	1,601			27	%	$	1,590			27	%	$	1,624			28	%	$	1,621			28	%	$	1,582			27	%
South Atlantic		1,526			26			1,535			26			1,558			26			1,515			26			1,549			26
Middle Atlantic		823			14			828			14			792			13			780			13			750			13
Mountain		494			8			478			8			462			8			466			8			458			8
East North Central		399			7			404			7			384			7			389			7			451			8
West North Central		370			6			377			6			366			6			368			6			374			6
New England		335			6			337			6			327			6			340			6			341			6
West South Central		238			4			241			4			237			4			247			4			259			4
East South Central		138			2			142			2			143			2			142			2			140			2

Subtotal		5,924			100	%		5,932			100	%		5,893			100	%		5,868			100	%		5,904			100	%

Allowance for losses		(30	)					(33	)					(36	)					(38	)					(40	)
Unamortized fees and costs		—						—						1						1						2

Total	$	5,894					$	5,899					$	5,858					$	5,831					$	5,866

Property Type
Retail	$	2,103			36	%	$	2,073			35	%	$	2,005			34	%	$	2,000			34	%	$	1,953			33	%
Industrial		1,580			27			1,581			27			1,571			27			1,565			27			1,584			27
Office		1,509			25			1,558			26			1,610			27			1,585			27			1,595			27
Apartments		493			8			491			8			473			8			490			8			542			9
Mixed use/other		239			4			229			4			234			4			228			4			230			4

Subtotal		5,924			100	%		5,932			100	%		5,893			100	%		5,868			100	%		5,904			100	%

Allowance for losses		(30	)					(33	)					(36	)					(38	)					(40	)
Unamortized fees and costs		—						—						1						1						2

Total	$	5,894					$	5,899					$	5,858					$	5,831					$	5,866

Allowance for Losses on Commercial Mortgage Loans
Beginning balance	$	33					$	36					$	38					$	40					$	42
Release		(3	)					(3	)					(2	)					(2	)					(2	)

Ending balance	$	30					$	33					$	36					$	38					$	40

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Commercial Mortgage Loans Summary

(amounts in millions)


	March 31, 2014					December 31, 2013					September 30, 2013					June 30, 2013					March 31, 2013
Loan Size	Principal Balance		% of Total			Principal Balance		% of Total			Principal Balance		% of Total			Principal Balance		% of Total			Principal Balance		% of Total
Under $5 million	$	2,405		41	%	$	2,435		41	%	$	2,393		41	%	$	2,384		41	%	$	2,425		41	%
$5 million but less than $10 million		1,645		28			1,638		28			1,594		27			1,594		27			1,573		27
$10 million but less than $20 million		1,376		23			1,358		23			1,315		22			1,321		23			1,255		21
$20 million but less than $30 million		204		3			205		3			227		4			204		3			205		3
$30 million and over		294		5			296		5			364		6			365		6			446		8

Total	$	5,924		100	%	$	5,932		100	%	$	5,893		100	%	$	5,868		100	%	$	5,904		100	%

Commercial Mortgage Loan Information by Vintage as of March 31, 2014

(loan amounts in millions)


Loan Year	Total Recorded Investment⁽¹⁾		Number of Loans		Average Balance Per Loan		Loan-To-Value ⁽²⁾			Delinquent Principal Balance		Number of Delinquent Loans		Average Balance Per Delinquent Loan
2004 and prior	$	885		463	$	2		41	%	$	4		2	$	2
2005		1,002		247	$	4		55	%		1		1	$	1
2006		935		238	$	4		62	%		33		6	$	5
2007		806		157	$	5		68	%		—		—	$	—
2008		235		51	$	5		68	%		6		1	$	6
2009		—		—	$	—		—	%		—		—	$	—
2010		138		62	$	2		44	%		—		—	$	—
2011		270		53	$	5		57	%		—		—	$	—
2012		661		96	$	7		63	%		—		—	$	—
2013		860		138	$	6		67	%		—		—	$	—
2014		132		20	$	—		70	%		—		—	$	—

Total	$	5,924		1,525	$	4		59	%	$	44		10	$	4

⁽¹⁾	Total recorded investment reflects the balance sheet carrying value gross of related allowance and the unamortized balance of loan origination fees and costs.

⁽²⁾	Represents weighted-average loan-to-value as of March 31, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

General Account GAAP Net Investment Income Yields

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
GAAP Net Investment Income
Fixed maturity securities—taxable	$	648		$	663		$	651		$	672		$	656		$	2,642
Fixed maturity securities—non-taxable		3			2			3			2			2			9
Commercial mortgage loans		83			91			81			81			82			335
Restricted commercial mortgage loans related to securitization entities		4			1			8			7			7			23
Equity securities		4			4			3			6			4			17
Other invested assets		39			33			33			33			46			145
Limited partnerships		11			24			8			6			2			40
Restricted other invested assets related to securitization entities		1			4			—			—			—			4
Policy loans		31			32			33			32			32			129
Cash, cash equivalents and short-term investments		5			4			4			5			7			20

Gross investment income before expenses and fees		829			858			824			844			838			3,364
Expenses and fees		(24	)		(23	)		(23	)		(23	)		(24	)		(93	)

Net investment income	$	805		$	835		$	801		$	821		$	814		$	3,271

Annualized Yields
Fixed maturity securities—taxable		4.6	%		4.7	%		4.7	%		4.9	%		4.7	%		4.8	%
Fixed maturity securities—non-taxable		3.7	%		2.6	%		4.2	%		2.9	%		2.7	%		3.1	%
Commercial mortgage loans		5.6	%		6.2	%		5.5	%		5.5	%		5.6	%		5.7	%
Restricted commercial mortgage loans related to securitization entities		7.0	%		1.5	%		10.5	%		8.6	%		8.4	%		7.6	%
Equity securities		5.1	%		4.7	%		3.2	%		5.7	%		3.4	%		4.2	%
Other invested assets		56.9	%		44.9	%		42.1	%		29.4	%		28.3	%		32.8	%
Limited partnerships⁽¹⁾		16.1	%		33.2	%		10.4	%		7.5	%		2.4	%		12.8	%
Restricted other invested assets related to securitization entities		1.0	%		4.2	%		—	%		—	%		—	%		1.1	%
Policy loans		8.6	%		8.3	%		7.9	%		7.8	%		8.0	%		8.1	%
Cash, cash equivalents and short-term investments		0.4	%		0.4	%		0.4	%		0.5	%		0.7	%		0.5	%

Gross investment income before expenses and fees		4.7	%		4.9	%		4.8	%		4.9	%		4.8	%		4.8	%
Expenses and fees		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%		-0.1	%

Net investment income		4.6	%		4.8	%		4.7	%		4.8	%		4.7	%		4.7	%

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 and equity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability. See page 69 herein for average invested assets and cash used in the yield calculation.

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Net Investment Gains (Losses), Net of Taxes and Other Adjustments—Detail⁽¹⁾

(amounts in millions)


	2014			2013
	1Q			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	(9	)	$	(5	)	$	1		$	22		$	4		$	22
U.S. government, agencies and government-sponsored enterprises		—			5			2			1			—			8
Foreign corporate		(2	)		1			—			8			1			10
Foreign government		—			2			(2	)		8			4			12
Tax-exempt		(1	)		—			—			—			(2	)		(2	)
Mortgage-backed securities		—			(2	)		(9	)		(15	)		(20	)		(46	)
Asset-backed securities		—			(6	)		(5	)		(11	)		(8	)		(30	)
Equity securities		1			5			6			8			3			22

Total net realized gains (losses) on available-for-sale securities		(11	)		—			(7	)		21			(18	)		(4	)

Impairments:
Sub-prime residential mortgage-backed securities		—			(1	)		(1	)		—			(2	)		(4	)
Commercial mortgage-backed securities		—			(2	)		(1	)		(2	)		(1	)		(6	)
Corporate fixed maturity securities		—			—			—			—			(4	)		(4	)
Commercial mortgage loans		(1	)		—			(1	)		(2	)		—			(3	)

Total impairments		(1	)		(3	)		(3	)		(4	)		(7	)		(17	)

Net unrealized gains (losses) on trading securities		8			(5	)		(5	)		(11	)		6			(15	)
Derivative instruments		(14	)		9			(12	)		(2	)		(27	)		(32	)
Limited partnerships		—			—			(2	)		—			—			(2	)
Commercial mortgage loans held-for-sale market valuation allowance		2			(1	)		2			1			1			3
Contingent purchase price valuation change		—			—			—			(1	)		1			—
Net gains (losses) related to securitization entities		4			17			13			9			6			45
Other		—			—			—			—			(1	)		(1	)

Net investment gains (losses), net of taxes		(12	)		17			(14	)		13			(39	)		(23	)
Adjustment for DAC and other intangible amortization and certain benefit reserves, net of taxes		1			—			4			5			12			21
Adjustment for net investment (gains) losses attributable to noncontrolling interests, net of taxes		1			(2	)		(3	)		(3	)		(1	)		(9	)

Net investment gains (losses), net of taxes and other adjustments	$	(10	)	$	15		$	(13	)	$	15		$	(28	)	$	(11	)

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

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	641		$	560		$	520		$	447		$	382
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,699		$	11,550		$	11,412		$	11,302		$	11,200
GAAP Basis ROE ^(1)/(2)		5.5	%		4.8	%		4.6	%		4.0	%		3.4	%

Operating ROE
Net operating income (loss) for the twelve months ended⁽¹⁾	$	659		$	616		$	584		$	562		$	496
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,699		$	11,550		$	11,412		$	11,302		$	11,200
Operating ROE ^(1)/(2)		5.6	%		5.3	%		5.1	%		5.0	%		4.4	%

Quarterly Average ROE	Three months ended
	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	184		$	208		$	108		$	141		$	103
Average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	11,942		$	11,758		$	11,606		$	11,473		$	11,345
Annualized GAAP Quarterly Basis ROE ^(3)/(4)		6.2	%		7.1	%		3.7	%		4.9	%		3.6	%

Operating ROE
Net operating income (loss) for the period ended⁽³⁾	$	194		$	193		$	139		$	133		$	151
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	11,942		$	11,758		$	11,606		$	11,473		$	11,345
Annualized Operating Quarterly Basis ROE ^(3)/(4)		6.5	%		6.6	%		4.8	%		4.6	%		5.3	%

Non-GAAP Definition for Operating ROE

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

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

⁽²⁾

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

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Reconciliation of Core Yield


		2014			2013
	(Assets— amounts in billions)	1Q			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	74.8		$	72.8		$	73.1		$	72.2		$	76.5		$	72.8
	Subtract:
	Securities lending		0.3			0.2			0.2			0.2			0.2			0.2
	Unrealized gains (losses)		4.3			2.8			3.3			3.7			6.7			2.8
	Derivative counterparty collateral		0.4			0.2			0.3			0.4			0.6			0.2

	Adjusted end of period invested assets and cash	$	69.8		$	69.6		$	69.3		$	67.9		$	69.0		$	69.6

(A)	Average Invested Assets And Cash Used in Reported Yield Calculation	$	69.7		$	69.5		$	68.6		$	68.5		$	69.4		$	69.0
	Subtract:
	Restricted commercial mortgage loans and other invested assets related to securitization entities		0.2			0.3			0.3			0.2			0.3			0.3

(B)	Average Invested Assets And Cash Used in Core Yield Calculation		69.5			69.2			68.3			68.3			69.1			68.7
	Subtract:
	Portfolios supporting floating products and non-recourse funding obligations⁽¹⁾		4.3			4.4			4.6			5.2			5.7			5.0

(C)	Average Invested Assets And Cash Used in Core Yield (excl. Floating and Non-Recourse Funding) Calculation	$	65.2		$	64.8		$	63.7		$	63.1		$	63.4		$	63.7

	(Income—amounts in millions)
(D)	Reported—Net Investment Income	$	805		$	835		$	801		$	821		$	814		$	3,271
	Subtract:
	Bond calls and commercial mortgage loan prepayments		10			8			15			14			10			47
	Reinsurance⁽²⁾		22			20			17			21			22			80
	Other non-core items⁽³⁾		5			17			4			19			2			42
	Restricted commercial mortgage loans and other invested assets related to securitization entities		3			3			4			4			4			15

(E)	Core Net Investment Income		765			787			761			763			776			3,087
	Subtract:
	Investment income from portfolios supporting floating products and non-recourse funding obligations⁽¹⁾		21			27			24			25			25			101

(F)	Core Net Investment Income (excl. Floating and Non-Recourse Funding)	$	744		$	760		$	737		$	738		$	751		$	2,986


(D) / (A)	Reported Yield		4.62	%		4.81	%		4.67	%		4.79	%		4.69	%		4.74	%
(E) / (B)	Core Yield		4.40	%		4.55	%		4.46	%		4.47	%		4.49	%		4.49	%
(F) / (C)	Core Yield (excl. Floating and Non-Recourse Funding)		4.56	%		4.69	%		4.63	%		4.68	%		4.74	%		4.68	%

Notes:

Columns may not add due to rounding.

Yields have been annualized.

Non-GAAP Definition for Core Yield

The company references the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield as defined by the company should not be viewed as a substitute for GAAP investment yield.

⁽¹⁾	Floating products refer to institutional products and the non-recourse funding obligations that support certain term and universal life insurance reserves in the company’s life insurance business.

⁽²⁾	Represents imputed investment income related to reinsurance agreements in the lifestyle protection insurance business.

⁽³⁾	Includes cost basis adjustments on structured securities, preferred stock income and various other immaterial items.

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Financial Strength Ratings

The company’s principal life insurance subsidiaries are rated in terms of financial strength by Standard & Poor’s Financial Services LLC (S&P), Moody’s Investors Service, Inc. (Moody’s) and A.M. Best Company, Inc. (A.M. Best) as follows:


Company	S&P	Moody’s	A.M. Best
Genworth Life Insurance Company	A-	A3	A
Genworth Life and Annuity Insurance Company	A-	A3	A
Genworth Life Insurance Company of New York	A-	A3	A

The company’s principal mortgage insurance subsidiaries are rated in terms of financial strength by S&P and Moody’s as follows:


Company	S&P	Moody’s
Genworth Mortgage Insurance Corporation	BB-	Ba1
Genworth Residential Mortgage Insurance Corporation of NC	BB-	Ba1
Genworth Financial Mortgage Insurance Pty. Limited (Australia)	AA-	A3
Genworth Financial Mortgage Insurance Limited (Europe)	BBB-	Not rated
Genworth Financial Mortgage Insurance Company Canada⁽¹⁾	AA-	Not rated
Genworth Seguros de Credito a la Vivienda S.A. de C.V.⁽²⁾	Not rated	Aa3.mx

⁽¹⁾	Genworth Financial Mortgage Insurance Company Canada is also rated “AA” by Dominion Bond Rating Service (DBRS).

⁽²⁾	Genworth Seguros de Credito a la Vivienda S.A. de C.V. is also rated “Baa3” by Moody’s on a Global Scale Insurance financial strength basis.

The company’s principal lifestyle protection insurance subsidiaries are rated in terms of financial strength by S&P as follows:

The S&P, Moody’s, A.M. Best and DBRS ratings included are not designed to be, and do not serve as, measures of protection or valuation offered to investors. These financial strength ratings should not be relied on with respect to making an investment in the company’s securities.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2014

Financial Strength Ratings (continued)

S&P states that an insurer rated “AA” (Very Strong) has very strong financial security characteristics that outweigh any vulnerabilities, and is highly likely to have the ability to meet financial commitments. Insurers rated “AA” (Very Strong), “A” (Strong), “BBB” (Good) or “BB” (Marginal) have very strong, strong, good, or marginal financial security characteristics, respectively. The “AA,” “A,” “BBB” and “BB” ranges are the second-, third-, fourth- and fifth-highest of nine financial strength rating ranges assigned by S&P, which range from “AAA” to “R.” A plus (+) or minus (-) shows relative standing in a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “AA-,” “A-,” “BBB-” and “BB-” ratings are the fourth-, seventh-, tenth- and thirteenth-highest of S&P’s 21 ratings categories.

Moody’s states that insurance companies rated “A” (Good) offer good financial security and that insurance companies rated “Ba” (Questionable) offer questionable financial security. The “A” (Good) and “Ba” (Questionable) ranges are the third- and fifth-highest, respectively, of nine financial strength rating ranges assigned by Moody’s, which range from “Aaa” to “C.” Numeric modifiers are used to refer to the ranking within the groups, with 1 being the highest and 3 being the lowest. These modifiers are not added to ratings in the “Aaa” category or to ratings below the “Caa” category. Accordingly, the “A3” and “Ba1” ratings are the seventh- and eleventh-highest, respectively, of Moody’s 21 ratings categories. Issuers or issues rated “Aa.mx” demonstrate very strong creditworthiness relative to other issuers in Mexico.

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

DBRS states that long-term obligations rated “AA” are of superior credit quality. The capacity for the payment of financial obligations is considered high and unlikely to be significantly vulnerable to future events. Credit quality differs from “AAA” only to a small degree.

S&P, Moody’s, A.M. Best and DBRS review their ratings periodically and the company cannot assure you that it will maintain the current ratings in the future. Other agencies may also rate the company or its insurance subsidiaries on a solicited or an unsolicited basis.

About Genworth Financial

Genworth is a leading financial services company meeting the retirement, longevity and lifestyle protection, investment and mortgage insurance needs of its customers, with a presence in more than 25 countries. For more information, visit www.genworth.com.

Inquiries:

Amy Corbin, 804-662-2685

Amy.Corbin@genworth.com

Company

Financial Assurance Company Limited

Financial Insurance Company Limited