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

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8-K - FORM 8-K - GENWORTH FINANCIAL INC	d810251d8k.htm
EX-99.1 - EXHIBIT 99.1 - GENWORTH FINANCIAL INC	d810251dex991.htm

Exhibit 99.2

Third Quarter Financial Supplement

September 30, 2014

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014


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

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

*Quarterly Results*
Net Operating Income (Loss) and Sales—U.S. Life Insurance Division		16-24
Net Operating Income and Sales—Global Mortgage Insurance Division		26-50
Net Operating Income (Loss) and Other Metrics—Corporate and Other Division		52-63

*Additional Financial Data*
Investments Summary		65
Fixed Maturity Securities Summary		66
Commercial Mortgage Loans Summary		67-68
General Account GAAP Net Investment Income Yields		69
Net Investment Gains (Losses), Net—Detail		70

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		72
Reconciliation of Core Yield		73

*Corporate Information*
Industry Ratings		75-76

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

THIRD QUARTER 2014

Dear Investor,

Thank you for your continued interest in Genworth Financial.

During the third quarter of 2014, the company completed a comprehensive review of its long-term care insurance claim reserves conducted over the past few months. The company made changes to its assumptions and methodologies primarily impacting claim terminations, most significantly in later duration claims, and benefit utilization reflecting that claimants are staying on claim longer and utilizing more of their available benefits in aggregate than had previously been assumed in the company’s reserve calculations. As a result of these changes, claim reserves were increased $531 million pre-tax, or $345 million after-tax. Results in the quarter also included an unfavorable $35 million after-tax correction of a claim reserve calculation of benefit utilization for policies with a benefit inflation option.

The company also completed its annual goodwill impairment analysis during the third quarter of 2014. As a result of the company’s focus on transitioning to higher return permanent products, including universal life, indexed universal life and linked benefit products, which are expected to ramp up over time, and reducing its dependence on lower margin, capital intensive term life insurance products resulting in lower projected overall sales, the company recorded an after-tax goodwill impairment of $350 million in the life insurance business, and has a remaining goodwill balance of $145 million in that business. Additionally, as a result of a reduced overall market size, the company’s transition to new products, higher expected use of reinsurance on new business as well as a change related to expected claim costs, the company recorded an after-tax goodwill impairment of $167 million in the long-term care insurance business, and has a remaining goodwill balance of $154 million in that business.

Please feel free to call with any questions or comments.

Regards,

Amy Corbin

Investor Relations

804 662.2685

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD 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 certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt and gains (losses) on 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.

In the third quarter of 2014, the company recorded goodwill impairments of $350 million, net of taxes, in the life insurance business and $167 million, net of taxes, in the long-term care insurance business.

The following transactions were excluded from net operating income (loss) for the periods presented as they related to the loss on the early extinguishment of debt. In the second quarter of 2014, the company paid an early redemption payment of approximately $2 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth MI Canada Inc.’s notes that were scheduled to mature in 2015. In the third quarter of 2013, the company paid a make-whole expense of approximately $20 million, net of taxes, related to the early redemption of Genworth Holdings’ notes that were scheduled to 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, net of taxes, 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 72 and 73 of this financial supplement.

Adjustments to reconcile net income (loss) attributable to Genworth Financial, Inc.’s common stockholders and net operating income (loss) assume a 35% tax rate and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves (see page 70).

⁽¹⁾	U.S. Generally Accepted Accounting Principles

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD 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 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 the company’s 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 the company’s loss mitigation actions, the results of which have been included in the company’s 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 performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013		September 30, 2013
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	11,231	$	12,070	$	12,032	$	11,851	$	11,665
Total accumulated other comprehensive income		3,934		4,161		3,483		2,542		2,939

Total Genworth Financial, Inc.’s stockholders’ equity	$	15,165	$	16,231	$	15,515	$	14,393	$	14,604

Book value per common share	$	30.54	$	32.68	$	31.27	$	29.08	$	29.55
Book value per common share, excluding accumulated other comprehensive income	$	22.62	$	24.31	$	24.25	$	23.95	$	23.60
Common shares outstanding as of the balance sheet date		496.6		496.6		496.2		494.8		494.2

	Twelve months ended
Twelve Month Rolling Average ROE	September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013		September 30, 2013
GAAP Basis ROE		-2.3%		5.7%		5.5%		4.8%		4.6%
Operating ROE⁽¹⁾		1.9%		5.8%		5.6%		5.3%		5.1%

	Three months ended
Quarterly Average ROE	September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013		September 30, 2013
GAAP Basis ROE		-29.0%		5.8%		6.2%		7.1%		3.7%
Operating ROE⁽¹⁾		-10.9%		5.2%		6.5%		6.6%		4.8%


Basic and Diluted Shares	Three months ended September 30, 2014		Nine months ended September 30, 2014
Weighted-average shares used in basic earnings per common share calculations		496.6		496.4
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		—		—

Weighted-average shares used in diluted earnings per common share calculations⁽²⁾		496.6		496.4

⁽¹⁾	See page 72 herein for a reconciliation of GAAP Basis ROE to Operating ROE.

⁽²⁾

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the net loss and net operating loss for the three months ended September 30, 2014, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended September 30, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million would have been antidilutive to the calculation. If the company had not incurred a net loss for the three months ended September 30, 2014, dilutive potential weighted-average common shares outstanding would have been 502.0 million. As a result of the net loss for the nine months ended September 30, 2014, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the nine months ended September 30, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 6.4 million would have been antidilutive to the calculation. If the company had not incurred a net loss for the nine months ended September 30, 2014, dilutive potential weighted-average common shares outstanding would have been 502.8 million. Since the company had net operating income for the nine months ended September 30, 2014, the company used 502.8 million diluted weighted-average common shares outstanding in the calculation of diluted net operating income per common share.

Third Quarter Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


	2014											2013
	3Q			2Q		1Q			Total			4Q		3Q			2Q		1Q			Total
REVENUES:
Premiums	$	1,395		$	1,343	$	1,307		$	4,045		$	1,310	$	1,291		$	1,286	$	1,261		$	5,148
Net investment income		805			813		805			2,423			835		801			821		814			3,271
Net investment gains (losses)		(27	)		34		(17	)		(10	)		26		(23	)		21		(61	)		(37	)
Insurance and investment product fees and other		231			225		227			683			241		248			243		289			1,021

Total revenues		2,404			2,415		2,322			7,141			2,412		2,317			2,371		2,303			9,403

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,986			1,256		1,194			4,436			1,256		1,169			1,269		1,201			4,895
Interest credited		185			184		183			552			186		184			184		184			738
Acquisition and operating expenses, net of deferrals		398			404		378			1,180			406		407			413		433			1,659
Amortization of deferred acquisition costs and intangibles		143			138		134			415			128		182			137		122			569
Goodwill impairment		550			—		—			550			—		—			—		—			—
Interest expense		114			120		127			361			121		124			121		126			492

Total benefits and expenses		3,376			2,102		2,016			7,494			2,097		2,066			2,124		2,066			8,353

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(972	)		313		306			(353	)		315		251			247		237			1,050
Provision (benefit) for income taxes		(185	)		85		87			(13	)		70		105			73		76			324

INCOME (LOSS) FROM CONTINUING OPERATIONS		(787	)		228		219			(340	)		245		146			174		161			726
Income (loss) from discontinued operations, net of taxes⁽¹⁾		—			—		—			—			—		2			6		(20	)		(12	)

NET INCOME (LOSS)		(787	)		228		219			(340	)		245		148			180		141			714
Less: net income attributable to noncontrolling interests		57			52		35			144			37		40			39		38			154

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	(844	)	$	176	$	184		$	(484	)	$	208	$	108		$	141	$	103		$	560


Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(1.70	)	$	0.35	$	0.37		$	(0.98	)	$	0.42	$	0.21		$	0.27	$	0.25		$	1.16
Diluted	$	(1.70	)	$	0.35	$	0.37		$	(0.98	)	$	0.42	$	0.21		$	0.27	$	0.25		$	1.15
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(1.70	)	$	0.35	$	0.37		$	(0.98	)	$	0.42	$	0.22		$	0.29	$	0.21		$	1.13
Diluted	$	(1.70	)	$	0.35	$	0.37		$	(0.98	)	$	0.41	$	0.22		$	0.28	$	0.21		$	1.12
Weighted-average shares outstanding
Basic		496.6			496.6		495.8			496.4			494.7		494.0			493.4		492.5			493.6
Diluted⁽²⁾		496.6			503.6		502.7			496.4			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.

⁽²⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Income (Loss) by Segment by Quarter

(amounts in millions, except per share amounts)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
U.S. Life Insurance Division
U.S. Life Insurance segment:
Life Insurance	$	13		$	39		$	21		$	73		$	56		$	54		$	27		$	36		$	173
Long-Term Care Insurance		(361	)		6			46			(309	)		42			41			26			20			129
Fixed Annuities		26			24			27			77			21			16			26			29			92

Total U.S. Life Insurance segment		(322	)		69			94			(159	)		119			111			79			85			394

Total U.S. Life Insurance Division		(322	)		69			94			(159	)		119			111			79			85			394

Global Mortgage Insurance Division
International Mortgage Insurance segment:
Canada		46			47			41			134			44			41			43			42			170
Australia⁽¹⁾		48			57			62			167			66			61			55			46			228
Other Countries		(7	)		(7	)		(4	)		(18	)		(9	)		(12	)		(9	)		(7	)		(37	)

Total International Mortgage Insurance segment		87			97			99			283			101			90			89			81			361
U.S. Mortgage Insurance segment		(2	)		39			33			70			6			(3	)		13			21			37

Total Global Mortgage Insurance Division		85			136			132			353			107			87			102			102			398

Corporate and Other Division
International Protection segment		3			2			7			12			13			4			1			6			24
Runoff segment		5			15			12			32			19			25			6			16			66
Corporate and Other		(88	)		(64	)		(51	)		(203	)		(65	)		(88	)		(55	)		(58	)		(266	)

Total Corporate and Other Division		(80	)		(47	)		(32	)		(159	)		(33	)		(59	)		(48	)		(36	)		(176	)

NET OPERATING INCOME (LOSS)		(317	)		158			194			35			193			139			133			151			616
ADJUSTMENTS TO NET OPERATING INCOME (LOSS):
Net investment gains (losses), net		(10	)		20			(10	)		—			15			(13	)		15			(28	)		(11	)
Goodwill impairment, net		(517	)		—			—			(517	)		—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			(13	)		—			(13	)
Gains (losses) on early extinguishment of debt, net		—			(2	)		—			(2	)		—			(20	)		—			—			(20	)
Income (loss) from discontinued operations, net of taxes		—			—			—			—			—			2			6			(20	)		(12	)

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(844	)		176			184			(484	)		208			108			141			103			560
Add: net income attributable to noncontrolling interests		57			52			35			144			37			40			39			38			154

NET INCOME (LOSS)	$	(787	)	$	228		$	219		$	(340	)	$	245		$	148		$	180		$	141		$	714


Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(1.70	)	$	0.35		$	0.37		$	(0.98	)	$	0.42		$	0.22		$	0.29		$	0.21		$	1.13
Diluted	$	(1.70	)	$	0.35		$	0.37		$	(0.98	)	$	0.41		$	0.22		$	0.28		$	0.21		$	1.12
Net operating income (loss) per common share
Basic	$	(0.64	)	$	0.32		$	0.39		$	0.07		$	0.39		$	0.28		$	0.27		$	0.31		$	1.25
Diluted	$	(0.64	)	$	0.31		$	0.39		$	0.07		$	0.38		$	0.28		$	0.27		$	0.30		$	1.24
Weighted-average shares outstanding
Basic		496.6			496.6			495.8			496.4			494.7			494.0			493.4			492.5			493.6
Diluted⁽²⁾		496.6			503.6			502.7			496.4			501.2			499.3			497.5			496.8			498.7

⁽¹⁾

Adjusted for 33.8% owned by noncontrolling interests after the initial public offering of the Australian mortgage insurance business on May 21, 2014. The following table shows Australia’s net operating income assuming 100% ownership and then adjusts for the portion related to noncontrolling interests.


	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Australia’s Net Operating Income	$	71	$	61	$	201	$	162
Less: Net Operating Income Attributable to Noncontrolling Interests		23		—		34		—

Australia’s Net Operating Income Available to Genworth Financial, Inc.’s Common Stockholders	$	48	$	61	$	167	$	162

⁽²⁾

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Consolidated Balance Sheets

(amounts in millions)


	September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013		September 30, 2013
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	62,317	$	62,360	$	60,244	$	58,629	$	59,086
Equity securities available-for-sale, at fair value		313		320		349		341		379
Commercial mortgage loans		6,077		5,986		5,894		5,899		5,858
Restricted commercial mortgage loans related to securitization entities		209		217		227		233		290
Policy loans		1,512		1,514		1,438		1,434		1,668
Other invested assets		2,281		1,963		1,875		1,686		1,826
Restricted other invested assets related to securitization entities		404		404		398		391		392

Total investments		73,113		72,764		70,425		68,613		69,499
Cash and cash equivalents		3,477		4,138		4,360		4,214		3,554
Accrued investment income		719		642		752		678		705
Deferred acquisition costs		5,085		5,085		5,177		5,278		5,256
Intangible assets		300		266		327		399		404
Goodwill		316		867		866		867		867
Reinsurance recoverable		17,374		17,276		17,234		17,219		17,224
Other assets		710		695		691		639		668
Separate account assets		9,420		9,911		9,933		10,138		9,957

Total assets	$	110,514	$	111,644	$	109,765	$	108,045	$	108,134

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Consolidated Balance Sheets

(amounts in millions)


	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	34,697		$	34,497		$	34,076		$	33,705		$	33,612
Policyholder account balances		25,827			25,834			25,881			25,528			25,266
Liability for policy and contract claims		7,987			7,223			7,156			7,204			7,271
Unearned premiums		4,085			4,191			4,075			4,107			4,160
Other liabilities		3,605			3,702			3,777			4,096			4,607
Borrowings related to securitization entities		225			233			239			242			297
Non-recourse funding obligations		2,010			2,024			2,030			2,038			2,046
Long-term borrowings		4,662			4,691			5,150			5,161			4,780
Deferred tax liability		875			1,074			714			206			293
Separate account liabilities		9,420			9,911			9,933			10,138			9,957

Total liabilities		93,393			93,380			93,031			92,425			92,289

Stockholders’ equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,991			11,986			12,124			12,127			12,149

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains on securities not other-than-temporarily impaired		2,047			2,109			1,606			914			1,106
Net unrealized gains (losses) on other-than-temporarily impaired securities		20			19			18			12			3

Net unrealized investment gains (losses)		2,067			2,128			1,624			926			1,109

Derivatives qualifying as hedges		1,753			1,652			1,538			1,319			1,442
Foreign currency translation and other adjustments		114			381			321			297			388

Total accumulated other comprehensive income		3,934			4,161			3,483			2,542			2,939
Retained earnings		1,939			2,783			2,607			2,423			2,215
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		15,165			16,231			15,515			14,393			14,604
Noncontrolling interests		1,956			2,033			1,219			1,227			1,241

Total stockholders’ equity		17,121			18,264			16,734			15,620			15,845

Total liabilities and stockholders’ equity	$	110,514		$	111,644		$	109,765		$	108,045		$	108,134

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Consolidated Balance Sheet by Segment

(amounts in millions)


	September 30, 2014
	U.S. Life Insurance		International Mortgage Insurance		U.S. Mortgage Insurance			International Protection		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	59,897	$	8,897	$	2,236		$	1,520	$	2,556		$	2,203		$	77,309
Deferred acquisition costs and intangible assets		4,913		184		23			238		327			16			5,701
Reinsurance recoverable		16,434		23		28			32		857			—			17,374
Deferred tax and other assets		370		119		35			153		(8	)		41			710
Separate account assets		—		—		—			—		9,420			—			9,420

Total assets	$	81,614	$	9,223	$	2,322		$	1,943	$	13,152		$	2,260		$	110,514

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	34,693	$	—	$	—		$	—	$	4		$	—		$	34,697
Policyholder account balances		22,720		—		—			11		3,096			—			25,827
Liability for policy and contract claims		6,269		355		1,239			107		17			—			7,987
Unearned premiums		624		2,806		159			488		8			—			4,085
Non-recourse funding obligations		2,040		—		—			—		—			(30	)		2,010
Deferred tax and other liabilities		4,115		264		(728	)		379		(73	)		523			4,480
Borrowings and capital securities		—		511		—			—		13			4,363			4,887
Separate account liabilities		—		—		—			—		9,420			—			9,420

Total liabilities		70,461		3,936		670			985		12,485			4,856			93,393

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		7,536		3,056		1,633			929		688			(2,611	)		11,231
Allocated accumulated other comprehensive income (loss)		3,617		275		19			29		(21	)		15			3,934

Total Genworth Financial, Inc.’s stockholders’ equity		11,153		3,331		1,652			958		667			(2,596	)		15,165
Noncontrolling interests		—		1,956		—			—		—			—			1,956

Total stockholders’ equity		11,153		5,287		1,652			958		667			(2,596	)		17,121

Total liabilities and stockholders’ equity	$	81,614	$	9,223	$	2,322		$	1,943	$	13,152		$	2,260		$	110,514

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Consolidated Balance Sheet by Segment

(amounts in millions)


	June 30, 2014
	U.S. Life Insurance		International Mortgage Insurance		U.S. Mortgage Insurance			International Protection		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	58,873	$	9,219	$	2,215		$	1,639	$	2,759		$	2,839		$	77,544
Deferred acquisition costs and intangible assets		5,389		190		23			266		331			19			6,218
Reinsurance recoverable		16,319		26		31			39		861			—			17,276
Deferred tax and other assets		335		83		53			172		(6	)		58			695
Separate account assets		—		—		—			—		9,911			—			9,911

Total assets	$	80,916	$	9,518	$	2,322		$	2,116	$	13,856		$	2,916		$	111,644

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	34,492	$	—	$	—		$	—	$	5		$	—		$	34,497
Policyholder account balances		22,667		—		—			15		3,152			—			25,834
Liability for policy and contract claims		5,463		371		1,256			117		16			—			7,223
Unearned premiums		612		2,887		143			541		8			—			4,191
Non-recourse funding obligations		2,054		—		—			—		—			(30	)		2,024
Deferred tax and other liabilities		4,510		233		(747	)		403		294			83			4,776
Borrowings and capital securities		—		540		—			—		13			4,371			4,924
Separate account liabilities		—		—		—			—		9,911			—			9,911

Total liabilities		69,798		4,031		652			1,076		13,399			4,424			93,380

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		7,547		2,971		1,650			947		479			(1,524	)		12,070
Allocated accumulated other comprehensive income (loss)		3,571		483		20			93		(22	)		16			4,161

Total Genworth Financial, Inc.’s stockholders’ equity		11,118		3,454		1,670			1,040		457			(1,508	)		16,231
Noncontrolling interests		—		2,033		—			—		—			—			2,033

Total stockholders’ equity		11,118		5,487		1,670			1,040		457			(1,508	)		18,264

Total liabilities and stockholders’ equity	$	80,916	$	9,518	$	2,322		$	2,116	$	13,856		$	2,916		$	111,644

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD 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 June 30, 2014	$	4,729		$	155		$	14		$	241		$	317		$	—	$	5,456
Costs deferred		77			19			2			18			1			—		117
Amortization, net of interest accretion		(80	)		(13	)		(1	)		(27	)		(6	)		—		(127	)
Impact of foreign currency translation		—			(8	)		—			(17	)		—			—		(25	)

Unamortized balance as of September 30, 2014		4,726			153			15			215			312			—		5,421
Effect of accumulated net unrealized investment (gains) losses		(332	)		—			—			—			(4	)		—		(336	)

Balance as of September 30, 2014	$	4,394		$	153		$	15		$	215		$	308		$	—	$	5,085

⁽¹⁾	Amortization, net of interest accretion, included $2 million of amortization related to net investment gains for the policyholder account balances.

⁽²⁾	Amortization, net of interest accretion, included $7 million of amortization related to net investment gains for the policyholder account balances.

U.S. Life Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	821		$	762		$	759		$	2,342		$	761		$	751		$	738		$	707		$	2,957
Net investment income		658			671			660			1,989			675			650			658			638			2,621
Net investment gains (losses)		1			25			3			29			(2	)		(6	)		17			(12	)		(3	)
Insurance and investment product fees and other		186			175			171			532			185			192			190			188			755

Total revenues		1,666			1,633			1,593			4,892			1,619			1,587			1,603			1,521			6,330

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,722			1,087			1,030			3,839			1,036			924			1,041			974			3,975
Interest credited		155			155			154			464			156			156			155			152			619
Acquisition and operating expenses, net of deferrals		173			156			161			490			164			154			177			163			658
Amortization of deferred acquisition costs and intangibles		91			81			75			247			78			139			80			87			384
Goodwill impairment		550			—			—			550			—			—			—			—			—
Interest expense		22			21			21			64			25			25			24			23			97

Total benefits and expenses		2,713			1,500			1,441			5,654			1,459			1,398			1,477			1,399			5,733

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(1,047	)		133			152			(762	)		160			189			126			122			597
Provision (benefit) for income taxes		(211	)		47			57			(107	)		40			82			46			45			213

INCOME (LOSS) FROM CONTINUING OPERATIONS		(836	)		86			95			(655	)		120			107			80			77			384

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(3	)		(17	)		(1	)		(21	)		(1	)		4			(10	)		8			1
Goodwill impairment, net		517			—			—			517			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			9			—			9

NET OPERATING INCOME (LOSS)	$	(322	)	$	69		$	94		$	(159	)	$	119		$	111		$	79		$	85		$	394


Effective tax rate (operating income (loss))⁽¹⁾		35.8	%		35.6	%		37.3	%		34.9	%		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

THIRD QUARTER 2014

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

(amounts in millions)


	U.S. Life Insurance Segment
Three months ended September 30, 2014	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	193		$	587		$	41		$	821		$	821
Net investment income		123			293			242			658			658
Net investment gains (losses)		10			(1	)		(8	)		1			1
Insurance and investment product fees and other		184			—			2			186			186

Total revenues		510			879			277			1,666			1,666

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		293			1,313			116			1,722			1,722
Interest credited		67			—			88			155			155
Acquisition and operating expenses, net of deferrals		52			103			18			173			173
Amortization of deferred acquisition costs and intangibles		46			25			20			91			91
Goodwill impairment		350			200			—			550			550
Interest expense		22			—			—			22			22

Total benefits and expenses		830			1,641			242			2,713			2,713

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(320	)		(762	)		35			(1,047	)		(1,047	)
Provision (benefit) for income taxes		11			(234	)		12			(211	)		(211	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(331	)		(528	)		23			(836	)		(836	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(6	)		—			3			(3	)		(3	)
Goodwill impairment, net		350			167			—			517			517

NET OPERATING INCOME (LOSS)	$	13		$	(361	)	$	26		$	(322	)	$	(322	)



Effective tax rate (operating income (loss))		35.2	%		35.7	%		34.8	%		35.8	%		35.8	%

	U.S. Life Insurance Segment
Three months ended September 30, 2013	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	166		$	564		$	21		$	751		$	751
Net investment income		138			282			230			650			650
Net investment gains (losses)		—			(2	)		(4	)		(6	)		(6	)
Insurance and investment product fees and other		188			2			2			192			192

Total revenues		492			846			249			1,587			1,587

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		160			659			105			924			924
Interest credited		68			—			88			156			156
Acquisition and operating expenses, net of deferrals		47			90			17			154			154
Amortization of deferred acquisition costs and intangibles		88			31			20			139			139
Interest expense		25			—			—			25			25

Total benefits and expenses		388			780			230			1,398			1,398

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		104			66			19			189			189
Provision for income taxes		50			26			6			82			82

INCOME FROM CONTINUING OPERATIONS		54			40			13			107			107
ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			1			3			4			4

NET OPERATING INCOME	$	54		$	41		$	16		$	111		$	111



Effective tax rate (operating income)		47.5	%		38.6	%		35.4	%		43.0	%		43.0	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	U.S. Life Insurance Segment
Nine months ended September 30, 2014	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	547		$	1,729		$	66		$	2,342		$	2,342
Net investment income		388			875			726			1,989			1,989
Net investment gains (losses)		34			2			(7	)		29			29
Insurance and investment product fees and other		525			1			6			532			532

Total revenues		1,494			2,607			791			4,892			4,892

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		831			2,712			296			3,839			3,839
Interest credited		199			—			265			464			464
Acquisition and operating expenses, net of deferrals		147			293			50			490			490
Amortization of deferred acquisition costs and intangibles		104			78			65			247			247
Goodwill impairment		350			200			—			550			550
Interest expense		64			—			—			64			64

Total benefits and expenses		1,695			3,283			676			5,654			5,654

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(201	)		(676	)		115			(762	)		(762	)
Provision (benefit) for income taxes		54			(202	)		41			(107	)		(107	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(255	)		(474	)		74			(655	)		(655	)
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(22	)		(2	)		3			(21	)		(21	)
Goodwill impairment, net		350			167			—			517			517

NET OPERATING INCOME (LOSS)	$	73		$	(309	)	$	77		$	(159	)	$	(159	)



Effective tax rate (operating income (loss))		36.5	%		35.5	%		35.5	%		34.9	%		34.9	%

	U.S. Life Insurance Segment
Nine months ended September 30, 2013	Life Insurance			Long-Term Care Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	520		$	1,627		$	49		$	2,196		$	2,196
Net investment income		402			823			721			1,946			1,946
Net investment gains (losses)		5			(7	)		1			(1	)		(1	)
Insurance and investment product fees and other		561			4			5			570			570

Total revenues		1,488			2,447			776			4,711			4,711

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		704			1,950			285			2,939			2,939
Interest credited		200			—			263			463			463
Acquisition and operating expenses, net of deferrals		147			291			56			494			494
Amortization of deferred acquisition costs and intangibles		161			80			65			306			306
Interest expense		72			—			—			72			72

Total benefits and expenses		1,284			2,321			669			4,274			4,274

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		204			126			107			437			437
Provision for income taxes		86			49			38			173			173

INCOME FROM CONTINUING OPERATIONS		118			77			69			264			264
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(3	)		4			1			2			2
Expenses related to restructuring, net		2			6			1			9			9

NET OPERATING INCOME	$	117		$	87		$	71		$	275		$	275



Effective tax rate (operating income)		42.0	%		38.4	%		35.8	%		39.4	%		39.4	%

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	193		$	171		$	183		$	547		$	164		$	166		$	173		$	181		$	684
Net investment income		123			137			128			388			139			138			133			131			541
Net investment gains (losses)		10			23			1			34			8			—			9			(4	)		13
Insurance and investment product fees and other		184			173			168			525			183			188			187			186			744

Total revenues		510			504			480			1,494			494			492			502			494			1,982

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		293			257			281			831			241			160			280			264			945
Interest credited		67			66			66			199			66			68			68			64			266
Acquisition and operating expenses, net of deferrals		52			45			50			147			47			47			50			50			194
Amortization of deferred acquisition costs and intangibles		46			32			26			104			31			88			33			40			192
Goodwill impairment		350			—			—			350			—			—			—			—			—
Interest expense		22			21			21			64			25			25			24			23			97

Total benefits and expenses		830			421			444			1,695			410			388			455			441			1,694

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(320	)		83			36			(201	)		84			104			47			53			288
Provision for income taxes		11			29			14			54			22			50			16			20			108

INCOME (LOSS) FROM CONTINUING OPERATIONS		(331	)		54			22			(255	)		62			54			31			33			180

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(6	)		(15	)		(1	)		(22	)		(6	)		—			(6	)		3			(9	)
Goodwill impairment, net		350			—			—			350			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			2			—			2

NET OPERATING INCOME	$	13		$	39		$	21		$	73		$	56		$	54		$	27		$	36		$	173


Effective tax rate (operating income)		35.2	%		35.4	%		39.3	%		36.5	%		25.6	%		47.5	%		34.4	%		37.6	%		37.6	%

SALES:

Sales by Product:
Term Life	$	13		$	14		$	13		$	40		$	9		$	5		$	4		$	4		$	22
Term Universal Life		—			—			—			—			—			—			—			1			1
Universal Life		11			7			6			24			5			5			5			9			24
Linked-Benefits		4			5			2			11			3			2			3			2			10

Total Sales	$	28		$	26		$	21		$	75		$	17		$	12		$	12		$	16		$	57

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Life Insurance In-Force

(amounts in millions)


	2014						2013
	3Q		2Q		1Q		4Q		3Q		2Q		1Q
Term and Whole Life Insurance
Life insurance in-force, net of reinsurance	$	350,946	$	341,383	$	338,372	$	336,015	$	335,039	$	336,008	$	338,014
Life insurance in-force before reinsurance	$	523,784	$	524,743	$	523,925	$	523,694	$	525,171	$	528,874	$	534,194

Term Universal Life Insurance
Life insurance in-force, net of reinsurance	$	129,268	$	130,270	$	131,256	$	132,293	$	133,500	$	134,868	$	136,222
Life insurance in-force before reinsurance	$	130,285	$	131,296	$	132,294	$	133,348	$	134,555	$	135,937	$	137,297

Universal Life Insurance
Life insurance in-force, net of reinsurance	$	42,119	$	42,454	$	42,814	$	43,150	$	43,447	$	43,773	$	44,051
Life insurance in-force before reinsurance	$	48,821	$	49,004	$	49,418	$	49,790	$	50,203	$	50,558	$	50,906

Total Life Insurance
Life insurance in-force, net of reinsurance	$	522,333	$	514,107	$	512,442	$	511,458	$	511,986	$	514,649	$	518,287
Life insurance in-force before reinsurance	$	702,890	$	705,043	$	705,637	$	706,832	$	709,929	$	715,369	$	722,397

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	587		$	577		$	565		$	1,729		$	582		$	564		$	550		$	513		$	2,209
Net investment income		293			292			290			875			291			282			277			264			1,114
Net investment gains (losses)		(1	)		3			—			2			(4	)		(2	)		(2	)		(3	)		(11	)
Insurance and investment product fees and other		—			—			1			1			—			2			1			1			4

Total revenues		879			872			856			2,607			869			846			826			775			3,316

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,313			735			664			2,712			701			659			663			628			2,651
Interest credited		—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		103			97			93			293			94			90			107			94			385
Amortization of deferred acquisition costs and intangibles		25			27			26			78			27			31			24			25			107
Goodwill impairment		200			—			—			200			—			—			—			—			—
Interest expense		—			—			—			—			—			—			—			—			—

Total benefits and expenses		1,641			859			783			3,283			822			780			794			747			3,143

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(762	)		13			73			(676	)		47			66			32			28			173
Provision (benefit) for income taxes		(234	)		5			27			(202	)		8			26			13			10			57

INCOME (LOSS) FROM CONTINUING OPERATIONS		(528	)		8			46			(474	)		39			40			19			18			116

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			(2	)		—			(2	)		3			1			1			2			7
Goodwill impairment, net		167			—			—			167			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			6			—			6

NET OPERATING INCOME (LOSS)	$	(361	)	$	6		$	46		$	(309	)	$	42		$	41		$	26		$	20		$	129


Effective tax rate (operating income (loss))		35.7	%		37.1	%		37.0	%		35.5	%		19.8	%		38.6	%		40.2	%		35.4	%		33.3	%

SALES:
Individual Long-Term Care Insurance	$	28		$	24		$	21		$	73		$	24		$	37		$	38		$	35		$	134
Group Long-Term Care Insurance		1			2			1			4			2			3			5			5			15

Total Sales	$	29		$	26		$	22		$	77		$	26		$	40		$	43		$	40		$	149



RATIOS:
Loss Ratio⁽¹⁾		173.0	%		73.2	%		63.3	%		103.8	%		68.2	%		63.7	%		66.6	%		66.2	%		66.2	%
Gross Benefits Ratio⁽²⁾		224.1	%		127.3	%		117.5	%		156.9	%		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

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	41		$	14		$	11		$	66		$	15		$	21		$	15		$	13		$	64
Net investment income		242			242			242			726			245			230			248			243			966
Net investment gains (losses)		(8	)		(1	)		2			(7	)		(6	)		(4	)		10			(5	)		(5	)
Insurance and investment product fees and other		2			2			2			6			2			2			2			1			7

Total revenues		277			257			257			791			256			249			275			252			1,032

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		116			95			85			296			94			105			98			82			379
Interest credited		88			89			88			265			90			88			87			88			353
Acquisition and operating expenses, net of deferrals		18			14			18			50			23			17			20			19			79
Amortization of deferred acquisition costs and intangibles		20			22			23			65			20			20			23			22			85
Interest expense		—			—			—			—			—			—			—			—			—

Total benefits and expenses		242			220			214			676			227			230			228			211			896

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		35			37			43			115			29			19			47			41			136
Provision for income taxes		12			13			16			41			10			6			17			15			48

INCOME FROM CONTINUING OPERATIONS		23			24			27			74			19			13			30			26			88

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

NET OPERATING INCOME	$	26		$	24		$	27		$	77		$	21		$	16		$	26		$	29		$	92


Effective tax rate (operating income)		34.8	%		35.5	%		36.2	%		35.5	%		33.6	%		35.4	%		36.3	%		35.5	%		35.3	%

SALES:
Sales by Product:
Single Premium Immediate Annuities	$	49		$	29		$	28		$	106		$	52		$	53		$	48		$	40		$	193
Single Premium Deferred Annuities		322			400			492			1,214			678			707			164			67			1,616

Total Sales	$	371		$	429		$	520		$	1,320		$	730		$	760		$	212		$	107		$	1,809

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Single Premium Deferred Annuities
Account value, beginning of the period	$	12,233		$	12,070		$	11,807		$	11,807		$	11,341		$	10,842		$	10,881		$	11,038		$	11,038
Deposits		324			404			496			1,224			686			714			166			68			1,634
Surrenders, benefits and product charges		(344	)		(320	)		(312	)		(976	)		(300	)		(293	)		(281	)		(302	)		(1,176	)

Net flows		(20	)		84			184			248			386			421			(115	)		(234	)		458
Interest credited		79			79			79			237			80			78			76			77			311

Account value, end of the period		12,292			12,233			12,070			12,292			11,807			11,341			10,842			10,881			11,807


Single Premium Immediate Annuities
Account value, beginning of the period		5,891			5,875			5,837			5,837			5,931			6,010			6,319			6,442			6,442
Premiums and deposits		83			59			49			191			91			80			71			65			307
Surrenders, benefits and product charges		(209	)		(213	)		(215	)		(637	)		(221	)		(214	)		(228	)		(235	)		(898	)

Net flows		(126	)		(154	)		(166	)		(446	)		(130	)		(134	)		(157	)		(170	)		(591	)
Interest credited		66			67			68			201			69			71			72			73			285
Effect of accumulated net unrealized investment gains (losses)		(49	)		103			136			190			(33	)		(16	)		(224	)		(26	)		(299	)

Account value, end of the period		5,782			5,891			5,875			5,782			5,837			5,931			6,010			6,319			5,837


Structured Settlements
Account value, net of reinsurance, beginning of the period		1,085			1,092			1,093			1,093			1,095			1,097			1,101			1,101			1,101
Surrenders, benefits and product charges		(18	)		(21	)		(15	)		(54	)		(16	)		(17	)		(18	)		(15	)		(66	)

Net flows		(18	)		(21	)		(15	)		(54	)		(16	)		(17	)		(18	)		(15	)		(66	)
Interest credited		15			14			14			43			14			15			14			15			58

Account value, net of reinsurance, end of the period		1,082			1,085			1,092			1,082			1,093			1,095			1,097			1,101			1,093

Total Fixed Annuities	$	19,156		$	19,209		$	19,037		$	19,156		$	18,737		$	18,367		$	17,949		$	18,301		$	18,737

Global Mortgage Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Income—Global Mortgage Insurance Division

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	388		$	381		$	372		$	1,141		$	390		$	380		$	392		$	388		$	1,550
Net investment income		97			86			92			275			93			98			95			107			393
Net investment gains (losses)		(4	)		12			(3	)		5			9			7			13			3			32
Insurance and investment product fees and other		(7	)		(3	)		2			(8	)		1			—			—			1			2

Total revenues		474			476			463			1,413			493			485			500			499			1,977

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		199			107			110			416			172			196			177			184			729
Acquisition and operating expenses, net of deferrals		87			93			82			262			107			91			96			91			385
Amortization of deferred acquisition costs and intangibles		16			17			17			50			15			15			19			17			66
Interest expense		8			8			8			24			7			9			8			9			33

Total benefits and expenses		310			225			217			752			301			311			300			301			1,213

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		164			251			246			661			192			174			200			198			764
Provision for income taxes		24			61			80			165			44			45			55			57			201

INCOME FROM CONTINUING OPERATIONS		140			190			166			496			148			129			145			141			563
Less: net income attributable to noncontrolling interests		57			52			35			144			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		83			138			131			352			111			89			106			103			409

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		2			(4	)		1			(1	)		(4	)		(2	)		(5	)		(1	)		(12	)
(Gains) losses on early extinguishment of debt, net		—			2			—			2			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			1			—			1

NET OPERATING INCOME⁽¹⁾	$	85		$	136		$	132		$	353		$	107		$	87		$	102		$	102		$	398


Effective tax rate (operating income)		11.3	%		23.3	%		33.9	%		25.4	%		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 $86 million and $381 million for the three and nine months ended September 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Three months ended September 30, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	130		$	105		$	7		$	242		$	146		$	388
Net investment income		39			38			1			78			19			97
Net investment gains (losses)		(4	)		—			—			(4	)		—			(4	)
Insurance and investment product fees and other		(2	)		(7	)		2			(7	)		—			(7	)

Total revenues		163			136			10			309			165			474

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		28			22			8			58			141			199
Acquisition and operating expenses, net of deferrals		18			25			9			52			35			87
Amortization of deferred acquisition costs and intangibles		10			5			—			15			1			16
Interest expense		5			3			—			8			—			8

Total benefits and expenses		61			55			17			133			177			310

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		102			81			(7	)		176			(12	)		164
Provision (benefit) for income taxes		24			10			—			34			(10	)		24

INCOME (LOSS) FROM CONTINUING OPERATIONS		78			71			(7	)		142			(2	)		140
Less: net income attributable to noncontrolling interests		34			23			—			57			—			57

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		44			48			(7	)		85			(2	)		83

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		2			—			—			2			—			2

NET OPERATING INCOME (LOSS)	$	46		$	48		$	(7	)	$	87		$	(2	)	$	85


Effective tax rate (operating income (loss))		21.2	%		14.2	%		-2.2	%		19.0	%		80.1	%		11.3	%

	International Mortgage Insurance Segment
Three months ended September 30, 2013	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	138		$	98		$	7		$	243		$	137		$	380
Net investment income		43			36			1			80			18			98
Net investment gains (losses)		9			(2	)		—			7			—			7
Insurance and investment product fees and other		—			(1	)					(1	)		1			—

Total revenues		190			131			8			329			156			485

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		30			29			14			73			123			196
Acquisition and operating expenses, net of deferrals		23			25			8			56			35			91
Amortization of deferred acquisition costs and intangibles		9			5			(1	)		13			2			15
Interest expense		6			3			—			9			—			9

Total benefits and expenses		68			62			21			151			160			311

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		122			69			(13	)		178			(4	)		174
Provision (benefit) for income taxes		38			9			(1	)		46			(1	)		45

INCOME (LOSS) FROM CONTINUING OPERATIONS		84			60			(12	)		132			(3	)		129
Less: net income attributable to noncontrolling interests		40			—			—			40			—			40

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		44			60			(12	)		92			(3	)		89

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(3	)		1			—			(2	)		—			(2	)

NET OPERATING INCOME (LOSS)	$	41		$	61		$	(12	)	$	90		$	(3	)	$	87


Effective tax rate (operating income (loss))		35.0	%		13.7	%		11.2	%		25.0	%		14.0	%		25.3	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Nine months ended September 30, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	388		$	304		$	22		$	714		$	427		$	1,141
Net investment income		117			108			2			227			48			275
Net investment gains (losses)		5			—			—			5			—			5
Insurance and investment product fees and other		1			(11	)		1			(9	)		1			(8	)

Total revenues		511			401			25			937			476			1,413

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		69			63			18			150			266			416
Acquisition and operating expenses, net of deferrals		67			67			26			160			102			262
Amortization of deferred acquisition costs and intangibles		29			16			—			45			5			50
Interest expense		16			8			—			24			—			24

Total benefits and expenses		181			154			44			379			373			752

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		330			247			(19	)		558			103			661
Provision (benefit) for income taxes		87			46			(1	)		132			33			165

INCOME (LOSS) FROM CONTINUING OPERATIONS		243			201			(18	)		426			70			496
Less: net income attributable to noncontrolling interests		110			34			—			144			—			144

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		133			167			(18	)		282			70			352

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

NET OPERATING INCOME (LOSS)	$	134		$	167		$	(18	)	$	283		$	70		$	353


Effective tax rate (operating income (loss))		26.4	%		19.3	%		6.4	%		23.5	%		32.1	%		25.4	%

	International Mortgage Insurance Segment
Nine months ended September 30, 2013	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	423		$	300		$	25		$	748		$	412		$	1,160
Net investment income		129			121			3			253			47			300
Net investment gains (losses)		25			(2	)		—			23			—			23
Insurance and investment product fees and other		(1	)		(1	)		1			(1	)		2			1

Total revenues		576			418			29			1,023			461			1,484

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		109			113			31			253			304			557
Acquisition and operating expenses, net of deferrals		64			76			29			169			109			278
Amortization of deferred acquisition costs and intangibles		29			17			—			46			5			51
Interest expense		17			9			—			26			—			26

Total benefits and expenses		219			215			60			494			418			912

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		357			203			(31	)		529			43			572
Provision (benefit) for income taxes		105			42			(2	)		145			12			157

INCOME (LOSS) FROM CONTINUING OPERATIONS		252			161			(29	)		384			31			415
Less: net income attributable to noncontrolling interests		117			—			—			117			—			117

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		135			161			(29	)		267			31			298

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(9	)		1			—			(8	)		—			(8	)
Expenses related to restructuring, net		—			—			1			1			—			1

NET OPERATING INCOME (LOSS)	$	126		$	162		$	(28	)	$	260		$	31		$	291


Effective tax rate (operating income (loss))		31.6	%		21.1	%		7.8	%		27.6	%		28.5	%		27.7	%

International Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Income—International Mortgage Insurance Segment

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	242		$	237		$	235		$	714		$	248		$	243		$	251		$	254		$	996
Net investment income		78			75			74			227			80			80			85			88			333
Net investment gains (losses)		(4	)		12			(3	)		5			9			7			13			3			32
Insurance and investment product fees and other		(7	)		(4	)		2			(9	)		1			(1	)		—			—			—

Total revenues		309			320			308			937			338			329			349			345			1,361

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		58			45			47			150			64			73			80			100			317
Acquisition and operating expenses, net of deferrals		52			59			49			160			72			56			61			52			241
Amortization of deferred acquisition costs and intangibles		15			15			15			45			14			13			17			16			60
Interest expense		8			8			8			24			7			9			8			9			33

Total benefits and expenses		133			127			119			379			157			151			166			177			651

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		176			193			189			558			181			178			183			168			710
Provision for income taxes		34			42			56			132			39			46			51			48			184

INCOME FROM CONTINUING OPERATIONS		142			151			133			426			142			132			132			120			526
Less: net income attributable to noncontrolling interests		57			52			35			144			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		85			99			98			282			105			92			93			82			372

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		2			(4	)		1			(1	)		(4	)		(2	)		(5	)		(1	)		(12	)
(Gains) losses on early extinguishment of debt, net		—			2			—			2			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			1			—			1

NET OPERATING INCOME⁽¹⁾	$	87		$	97		$	99		$	283		$	101		$	90		$	89		$	81		$	361


Effective tax rate (operating income)		19.0	%		18.8	%		30.7	%		23.5	%		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 $88 million and $311 million for the three and nine months ended September 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	130		$	128		$	130		$	388		$	137		$	138		$	141		$	144		$	560
Net investment income		39			39			39			117			41			43			42			44			170
Net investment gains (losses)		(4	)		12			(3	)		5			6			9			12			4			31
Insurance and investment product fees and other		(2	)		1			2			1			—			—			(1	)		—			(1	)

Total revenues		163			180			168			511			184			190			194			192			760

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		28			15			26			69			30			30			35			44			139
Acquisition and operating expenses, net of deferrals		18			28			21			67			29			23			22			19			93
Amortization of deferred acquisition costs and intangibles		10			9			10			29			8			9			10			10			37
Interest expense		5			6			5			16			5			6			5			6			22

Total benefits and expenses		61			58			62			181			72			68			72			79			291

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		102			122			106			330			112			122			122			113			469
Provision for income taxes		24			32			31			87			28			38			35			32			133

INCOME FROM CONTINUING OPERATIONS		78			90			75			243			84			84			87			81			336
Less: net income attributable to noncontrolling interests		34			41			35			110			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		44			49			40			133			47			44			48			43			182

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		2			(4	)		1			(1	)		(3	)		(3	)		(5	)		(1	)		(12	)
(Gains) losses on early extinguishment of debt, net		—			2			—			2			—			—			—			—			—

NET OPERATING INCOME⁽¹⁾	$	46		$	47		$	41		$	134		$	44		$	41		$	43		$	42		$	170


Effective tax rate (operating income)		21.2	%		26.3	%		31.6	%		26.4	%		22.9	%		35.0	%		29.3	%		30.2	%		29.5	%

SALES:
New Insurance Written (NIW)
Flow	$	6,800		$	5,000		$	2,900		$	14,700		$	5,000		$	6,000		$	4,700		$	3,300		$	19,000
Bulk		5,600			7,500			2,900			16,000			2,400			3,900			6,400			2,400			15,100

Total Canada NIW⁽²⁾	$	12,400		$	12,500		$	5,800		$	30,700		$	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 $48 million and $144 million for the three and nine months ended September 30, 2014, respectively.

⁽²⁾	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $13,000 million and $32,700 million for the three and nine months ended September 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	105		$	102		$	97		$	304		$	98		$	98		$	101		$	101		$	398
Net investment income		38			36			34			108			38			36			42			43			159
Net investment gains (losses)		—			—			—			—			—			(2	)		1			(1	)		(2	)
Insurance and investment product fees and other		(7	)		(4	)		—			(11	)		1			(1	)		—			—			—

Total revenues		136			134			131			401			137			131			144			143			555

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		22			24			17			63			21			29			36			48			134
Acquisition and operating expenses, net of deferrals		25			23			19			67			34			25			27			24			110
Amortization of deferred acquisition costs and intangibles		5			6			5			16			5			5			6			6			22
Interest expense		3			2			3			8			2			3			3			3			11

Total benefits and expenses		55			55			44			154			62			62			72			81			277

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		81			79			87			247			75			69			72			62			278
Provision for income taxes		10			11			25			46			9			9			17			16			51

INCOME FROM CONTINUING OPERATIONS		71			68			62			201			66			60			55			46			227
Less: net income attributable to noncontrolling interests		23			11			—			34			—			—			—			—			—

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		48			57			62			167			66			60			55			46			227

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

NET OPERATING INCOME⁽¹⁾	$	48		$	57		$	62		$	167		$	66		$	61		$	55		$	46		$	228


Effective tax rate (operating income)		14.2	%		10.4	%		29.0	%		19.3	%		12.0	%		13.7	%		23.5	%		26.7	%		18.6	%

SALES:
New Insurance Written (NIW)
Flow	$	8,100		$	7,900		$	7,800		$	23,800		$	9,000		$	8,000		$	8,700		$	7,900		$	33,600
Bulk		1,000			—			—			1,000			—			100			900			—			1,000

Total Australia NIW⁽²⁾	$	9,100		$	7,900		$	7,800		$	24,800		$	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 $47 million and $184 million for the three and nine months ended September 30, 2014, respectively.

⁽²⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $9,000 million and $26,800 million for the three and nine months ended September 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	7		$	7		$	8		$	22		$	13		$	7		$	9		$	9		$	38
Net investment income		1			—			1			2			1			1			1			1			4
Net investment gains (losses)		—			—			—			—			3			—			—			—			3
Insurance and investment product fees and other		2			(1	)		—			1			—			—			1			—			1

Total revenues		10			6			9			25			17			8			11			10			46

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		8			6			4			18			13			14			9			8			44
Acquisition and operating expenses, net of deferrals		9			8			9			26			9			8			12			9			38
Amortization of deferred acquisition costs and intangibles		—			—			—			—			1			(1	)		1			—			1
Interest expense		—			—			—			—			—			—			—			—			—

Total benefits and expenses		17			14			13			44			23			21			22			17			83

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(7	)		(8	)		(4	)		(19	)		(6	)		(13	)		(11	)		(7	)		(37	)
Provision (benefit) for income taxes		—			(1	)		—			(1	)		2			(1	)		(1	)		—			—

LOSS FROM CONTINUING OPERATIONS		(7	)		(7	)		(4	)		(18	)		(8	)		(12	)		(10	)		(7	)		(37	)
Less: net income attributable to noncontrolling interests		—			—			—			—			—			—			—			—			—

LOSS FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(7	)		(7	)		(4	)		(18	)		(8	)		(12	)		(10	)		(7	)		(37	)

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

NET OPERATING LOSS⁽¹⁾	$	(7	)	$	(7	)	$	(4	)	$	(18	)	$	(9	)	$	(12	)	$	(9	)	$	(7	)	$	(37	)


Effective tax rate (operating loss)		-2.2	%		11.3	%		10.3	%		6.4	%		-15.3	%		11.2	%		5.7	%		4.9	%		3.1	%

SALES:
New Insurance Written (NIW)
Flow	$	400		$	500		$	400		$	1,300		$	500		$	500		$	400		$	400		$	1,800
Bulk		—			—			—			—			600			—			—			—			600

Total Other Countries NIW⁽²⁾	$	400		$	500		$	400		$	1,300		$	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 $(7) million and $(17) million for the three and nine months ended September 30, 2014, respectively.

⁽²⁾	New insurance written for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $300 million and $1,200 million for the three and nine months ended September 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written
Canada	$	200		$	146		$	77		$	423		$	125		$	156		$	134		$	84		$	499
Australia		130			125			126			381			147			123			132			117			519
Other Countries⁽¹⁾		6			1			6			13			6			6			7			5			24

Total Net Premiums Written	$	336		$	272		$	209		$	817		$	278		$	285		$	273		$	206		$	1,042

Loss Ratio⁽²⁾
Canada		21	%		12	%		20	%		18	%		22	%		22	%		25	%		31	%		25	%
Australia		21	%		23	%		17	%		21	%		21	%		31	%		35	%		47	%		34	%
Other Countries		105	%		90	%		55	%		83	%		102	%		170	%		110	%		90	%		115	%
Total Loss Ratio		24	%		19	%		20	%		21	%		25	%		31	%		32	%		39	%		32	%

GAAP Basis Expense Ratio⁽³⁾
Canada⁽⁴⁾		22	%		29	%		23	%		25	%		27	%		23	%		22	%		20	%		23	%
Australia		28	%		28	%		25	%		27	%		39	%		30	%		32	%		31	%		33	%
Other Countries⁽¹⁾		126	%		131	%		107	%		121	%		69	%		106	%		129	%		113	%		101	%
Total GAAP Basis Expense Ratio		28	%		32	%		27	%		29	%		34	%		29	%		30	%		27	%		30	%

Adjusted Expense Ratio⁽⁵⁾
Canada⁽⁶⁾		14	%		26	%		39	%		23	%		30	%		20	%		23	%		35	%		26	%
Australia		23	%		23	%		20	%		22	%		26	%		24	%		25	%		27	%		25	%
Other Countries⁽¹⁾		150	%		NM	⁽⁷⁾		142	%		NM	⁽⁷⁾		146	%		136	%		177	%		174	%		158	%
Total Adjusted Expense Ratio		20	%		28	%		30	%		25	%		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 $290 million, $298 million, $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 September 30, 2014, June 30, 2014, 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⁾	Excluding the impact of debt early redemption payment of $6 million in the second quarter of 2014, the adjusted GAAP basis expense ratio was 24% and 23% for the three months ended June 30, 2014 and the nine months ended September 30, 2014, respectively.

⁽⁵⁾	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.

⁽⁶⁾	Excluding the impact of debt early redemption payment of $6 million in the second quarter of 2014, the adjusted expense ratio was 21% for both the three months ended June 30, 2014 and the nine months ended September 30, 2014.

⁽⁷⁾	“NM” is defined as not meaningful for percentages greater than 200%.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2014						2013
	3Q		2Q		1Q		4Q		3Q		2Q		1Q
Primary Insurance In-Force
Canada⁽¹⁾	$	310,800	$	314,500	$	291,900	$	298,000	$	300,700	$	285,200	$	284,700
Australia		271,100		288,500		281,000		267,900		275,500		266,500		299,000
Other Countries		23,900		26,000		26,200		26,300		32,500		31,300		31,400

Total Primary Insurance In-Force	$	605,800	$	629,000	$	599,100	$	592,200	$	608,700	$	583,000	$	615,100

Primary Risk In-Force⁽²⁾
Canada
Flow	$	82,600	$	84,500	$	80,100	$	82,300	$	83,400	$	79,700	$	80,900
Bulk		26,200		25,600		22,100		22,000		21,900		20,100		18,800

Total Canada		108,800		110,100		102,200		104,300		105,300		99,800		99,700

Australia
Flow		88,100		93,800		91,100		86,700		88,800		85,700		96,100
Bulk		6,800		7,200		7,200		7,100		7,600		7,600		8,500

Total Australia		94,900		101,000		98,300		93,800		96,400		93,300		104,600

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

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

Total Primary Risk In-Force	$	207,000	$	214,700	$	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 June 30, 2014, $141.0 billion as of March 31, 2014, $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

THIRD QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(dollar amounts in millions)


Primary Insurance	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
Insured loans in-force⁽¹⁾		1,646,223			1,602,928			1,549,650			1,527,554			1,501,139
Insured delinquent loans		1,708			1,703			1,860			1,830			1,778
Insured delinquency rate⁽²⁾		0.10	%		0.11	%		0.12	%		0.12	%		0.12	%

Flow loans in-force⁽¹⁾		1,236,206			1,213,846			1,197,083			1,187,753			1,171,486
Flow delinquent loans		1,477			1,493			1,634			1,591			1,566
Flow delinquency rate⁽²⁾		0.12	%		0.12	%		0.14	%		0.13	%		0.13	%

Bulk loans in-force⁽¹⁾		410,017			389,082			352,567			339,801			329,653
Bulk delinquent loans		231			210			226			239			212
Bulk delinquency rate⁽²⁾		0.06	%		0.05	%		0.06	%		0.07	%		0.06	%

Loss Metrics	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
Beginning Reserves	$	90		$	97		$	102		$	108		$	112
Paid claims⁽³⁾		(24	)		(26	)		(27	)		(33	)		(33	)
Increase in reserves		27			16			26			30			27
Impact of changes in foreign exchange rates		(4	)		3			(4	)		(3	)		2

Ending Reserves	$	89		$	90		$	97		$	102		$	108


	September 30, 2014						June 30, 2014						September 30, 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		46	%		0.06	%		47	%		0.06	%		47	%		0.07%
Alberta		17			0.09	%		16			0.10	%		16			0.14%
British Columbia		14			0.15	%		15			0.14	%		15			0.18%
Quebec		14			0.18	%		14			0.18	%		14			0.17%
Nova Scotia		2			0.21	%		2			0.23	%		2			0.21%
Saskatchewan		3			0.12	%		2			0.11	%		2			0.12%
Manitoba		2			0.04	%		2			0.06	%		2			0.08%
New Brunswick		1			0.22	%		1			0.21	%		1			0.21%
All Other		1			0.11	%		1			0.12	%		1			0.12%

Total		100	%		0.10	%		100	%		0.11	%		100	%		0.12%


By Policy Year
2006 and prior		31	%		0.03	%		33	%		0.03	%		35	%		0.05%
2007		9			0.17	%		9			0.18	%		10			0.24%
2008		7			0.21	%		8			0.22	%		8			0.28%
2009		5			0.23	%		5			0.22	%		6			0.23%
2010		8			0.25	%		8			0.26	%		9			0.24%
2011		8			0.25	%		8			0.25	%		9			0.25%
2012		11			0.16	%		12			0.14	%		13			0.07%
2013		11			0.06	%		11			0.05	%		10			0.01%
2014		10			0.01	%		6			—	%		—			— %

Total		100	%		0.10	%		100	%		0.11	%		100	%		0.12%

⁽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

THIRD QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(Canadian dollar amounts in millions)


	2014											2013
	3Q			2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	25		$	28		$	28		$	81	$	32		$	32		$	39		$	51		$	154
Bulk		1			—			1			2		2			2			1			2			7

Total Paid Claims	$	26		$	28		$	29		$	83	$	34		$	34		$	40		$	53		$	161


Average Paid Claim (in thousands)	$	63.9		$	63.4		$	66.4				$	72.2		$	69.4		$	73.1		$	84.9

Average Reserve Per Delinquency (in thousands)	$	58.4		$	56.4		$	57.5				$	59.0		$	62.5		$	66.1		$	61.3

Loss Metrics
Beginning Reserves	$	96		$	107		$	108				$	111		$	118		$	120		$	129
Paid claims		(26	)		(28	)		(29	)				(34	)		(34	)		(40	)		(53	)
Increase in reserves		30			17			28					31			27			38			44

Ending Reserves	$	100		$	96		$	107				$	108		$	111		$	118		$	120

Loan Amount

Over $550K		6	%		5	%		5	%				5	%		5	%		5	%		5	%
$400K to $550K		11			11			11					10			10			10			10
$250K to $400K		32			32			32					32			32			32			31
$100K to $250K		46			47			47					48			48			48			49
$100K or Less		5			5			5					5			5			5			5

Total		100	%		100	%		100	%				100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	212		$	209		$	208				$	207		$	206		$	205		$	203

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

2006 and prior		38	%		39	%		39	%				39	%		36	%		38	%		39	%
2007		64	%		64	%		65	%				65	%		64	%		66	%		68	%
2008		71	%		71	%		71	%				72	%		69	%		71	%		72	%
2009		69	%		70	%		70	%				70	%		71	%		73	%		74	%
2010		76	%		77	%		77	%				77	%		77	%		80	%		81	%
2011		80	%		81	%		81	%				82	%		83	%		86	%		87	%
2012		86	%		86	%		87	%				87	%		87	%		90	%		91	%
2013		90	%		91	%		91	%				92	%		91	%		92	%		—	%
2014		93	%		93	%		—	%				—	%		—	%		—	%		—	%
Total Flow		57	%		57	%		57	%				57	%		55	%		56	%		56	%

Total Bulk		42	%		41	%		41	%				41	%		34	%		31	%		31	%
Total		53	%		54	%		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

THIRD QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(dollar amounts in millions)


Primary Insurance	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
Insured loans in-force		1,490,221			1,481,201			1,477,063			1,474,181			1,463,148
Insured delinquent loans		5,300			5,405			5,070			4,980			5,454
Insured delinquency rate		0.36	%		0.36	%		0.34	%		0.34	%		0.37	%

Flow loans in-force		1,370,136			1,362,236			1,355,635			1,350,571			1,336,901
Flow delinquent loans		5,031			5,125			4,813			4,760			5,192
Flow delinquency rate		0.37	%		0.38	%		0.36	%		0.35	%		0.39	%

Bulk loans in-force		120,085			118,965			121,428			123,610			126,247
Bulk delinquent loans		269			280			257			220			262
Bulk delinquency rate		0.22	%		0.24	%		0.21	%		0.18	%		0.21	%

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

Beginning Reserves	$	171		$	168		$	172		$	198		$	200
Paid claims		(19	)		(24	)		(27	)		(39	)		(37	)
Increase in reserves		22			24			17			20			30
Impact of changes in foreign exchange rates		(13	)		3			6			(7	)		5

Ending Reserves	$	161		$	171		$	168		$	172		$	198


	September 30, 2014						June 30, 2014						September 30, 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	%		0.30	%		29	%		0.33	%		30	%		0.35%
Victoria		23			0.32	%		23			0.34	%		23			0.31%
Queensland		23			0.49	%		23			0.48	%		22			0.52%
Western Australia		11			0.34	%		11			0.34	%		11			0.32%
South Australia		6			0.43	%		6			0.43	%		6			0.45%
New Zealand		2			0.26	%		2			0.34	%		2			0.50%
Australian Capital Territory		3			0.13	%		3			0.13	%		3			0.09%
Tasmania		2			0.31	%		2			0.30	%		2			0.32%
Northern Territory		1			0.21	%		1			0.20	%		1			0.16%

Total		100	%		0.36	%		100	%		0.36	%		100	%		0.37%

By Policy Year
2006 and prior		32	%		0.22	%		33	%		0.23	%		36	%		0.24%
2007		8			0.68	%		8			0.72	%		9			0.76%
2008		8			0.93	%		8			0.95	%		9			0.93%
2009		9			0.70	%		9			0.66	%		11			0.67%
2010		7			0.38	%		7			0.40	%		8			0.35%
2011		7			0.41	%		8			0.39	%		8			0.29%
2012		10			0.33	%		10			0.29	%		11			0.16%
2013		11			0.15	%		11			0.10	%		8			0.01%
2014		8			0.01	%		6			—	%		—			— %

Total		100	%		0.36	%		100	%		0.36	%		100	%		0.37%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(Australian dollar amounts in millions)


	2014											2013
	3Q			2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims
Flow	$	20		$	25		$	30		$	75	$	41		$	39		$	44		$	59		$	183
Bulk		1			—			—			1		—			2			—			—			2

Total Paid Claims	$	21		$	25		$	30		$	76	$	41		$	41		$	44		$	59		$	185


Average Paid Claim (in thousands)	$	58.6		$	60.5		$	65.1				$	71.5		$	79.9		$	80.3		$	81.4

Average Reserve Per Delinquency (in thousands)	$	34.8		$	33.6		$	35.7				$	38.6		$	38.8		$	37.7		$	38.9

Loss Metrics
Beginning Reserves	$	181		$	181		$	192				$	212		$	220		$	228		$	241
Paid claims		(21	)		(25	)		(30	)				(41	)		(41	)		(44	)		(59	)
Increase in reserves		24			25			19					21			33			36			46

Ending Reserves	$	184		$	181		$	181				$	192		$	212		$	220		$	228

Loan Amount

Over $550K		13	%		12	%		12	%				12	%		12	%		12	%		12	%
$400K to $550K		18			18			18					17			17			17			16
$250K to $400K		37			37			37					37			37			37			37
$100K to $250K		26			27			27					28			28			28			29
$100K or Less		6			6			6					6			6			6			6

Total		100	%		100	%		100	%				100	%		100	%		100	%		100	%


Average Primary Loan Size (in thousands)	$	208		$	207		$	205				$	203		$	202		$	200		$	198
Average Effective Loan-To-Value Ratios By Policy Year^(1),(2)
2006 and prior		38	%		38	%		40	%				41	%		43	%		47	%		48	%
2007		60	%		61	%		63	%				64	%		66	%		67	%		68	%
2008		67	%		68	%		70	%				72	%		74	%		74	%		76	%
2009		69	%		70	%		73	%				75	%		77	%		77	%		79	%
2010		74	%		76	%		78	%				80	%		83	%		83	%		85	%
2011		76	%		77	%		80	%				82	%		85	%		85	%		87	%
2012		77	%		78	%		80	%				82	%		85	%		85	%		86	%
2013		81	%		82	%		84	%				85	%		87	%		87	%		—	%
2014		87	%		87	%		—	%				—	%		—	%		—	%		—	%
Total Flow		61	%		61	%		62	%				64	%		65	%		68	%		69	%

Total Bulk		28	%		29	%		30	%				31	%		32	%		37	%		38	%
Total		58	%		58	%		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

THIRD QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


Risk In-Force by Loan-To-Value Ratio⁽¹⁾	September 30, 2014						June 30, 2014
	Primary		Flow		Bulk		Primary		Flow		Bulk
Canada
95.01% and above	$	38,286	$	38,286	$	—	$	38,802	$	38,802	$	—
90.01% to 95.00%		25,343		25,341		2		26,086		26,084		2
80.01% to 90.00%		19,866		15,892		3,974		20,188		16,450		3,738
80.00% and below		25,297		3,094		22,203		25,013		3,188		21,825

Total Canada	$	108,792	$	82,613	$	26,179	$	110,089	$	84,524	$	25,565

Australia
95.01% and above	$	18,199	$	18,199	$	—	$	19,438	$	19,437	$	1
90.01% to 95.00%		23,213		23,206		7		24,467		24,459		8
80.01% to 90.00%		24,707		24,625		82		26,248		26,157		91
80.00% and below		28,761		22,037		6,724		30,816		23,756		7,060

Total Australia	$	94,880	$	88,067	$	6,813	$	100,969	$	93,809	$	7,160

Other Countries⁽²⁾
95.01% and above	$	566	$	566	$	—	$	618	$	618	$	—
90.01% to 95.00%		1,623		1,565		58		1,757		1,695		62
80.01% to 90.00%		946		694		252		1,028		757		271
80.00% and below		203		166		37		222		181		41

Total Other Countries	$	3,338	$	2,991	$	347	$	3,625	$	3,251	$	374

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 $290 million and $298 million, respectively, of risk in-force in Europe ceded under quota share reinsurance agreements as of September 30, 2014 and June 30, 2014.

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	146		$	144		$	137		$	427		$	142		$	137		$	141		$	134		$	554
Net investment income		19			11			18			48			13			18			10			19			60
Net investment gains (losses)		—			—			—			—			—			—			—			—			—
Insurance and investment product fees and other		—			1			—			1			—			1			—			1			2

Total revenues		165			156			155			476			155			156			151			154			616

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		141			62			63			266			108			123			97			84			412
Acquisition and operating expenses, net of deferrals		35			34			33			102			35			35			35			39			144
Amortization of deferred acquisition costs and intangibles		1			2			2			5			1			2			2			1			6

Total benefits and expenses		177			98			98			373			144			160			134			124			562

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(12	)		58			57			103			11			(4	)		17			30			54
Provision (benefit) for income taxes		(10	)		19			24			33			5			(1	)		4			9			17

INCOME (LOSS) FROM CONTINUING OPERATIONS		(2	)		39			33			70			6			(3	)		13			21			37

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			—			—			—			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	(2	)	$	39		$	33		$	70		$	6		$	(3	)	$	13		$	21		$	37


Effective tax rate (operating income (loss))		80.1	%		32.4	%		42.0	%		32.1	%		45.0	%		14.0	%		22.9	%		30.1	%		31.6	%

SALES:
New Insurance Written (NIW)
Flow	$	7,500		$	6,100		$	3,900		$	17,500		$	4,900		$	6,400		$	6,300		$	4,700		$	22,300
Bulk		—			—			—			—			—			—			—			—			—

Total U.S. Mortgage Insurance NIW	$	7,500		$	6,100		$	3,900		$	17,500		$	4,900		$	6,400		$	6,300		$	4,700		$	22,300

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	2014															2013
	3Q					2Q					1Q					4Q					3Q					2Q					1Q
	Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)			Flow NIW		Premium Rate (bps)
Product
Monthly⁽¹⁾	$	6,100		59		$	5,300		59		$	3,400		58		$	4,300		62		$	5,800		60		$	5,600		58		$	4,300		56
Single		1,400		194			800		197			500		200			600		207			600		210			700		205			400		201

Total Flow	$	7,500				$	6,100				$	3,900				$	4,900				$	6,400				$	6,300				$	4,700


	Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW			Flow NIW		% of Flow NIW
FICO Scores
Over 735	$	4,400		59	%	$	3,600		59	%	$	2,400		61	%	$	3,100		63	%	$	4,400		69	%	$	4,500		72	%	$	3,400		72	%
680 - 735		2,400		32			2,000		33			1,200		31			1,500		31			1,900		29			1,600		25			1,200		26
660 - 679⁽²⁾		400		5			300		5			200		5			200		4			100		2			200		3			100		2
620 - 659		300		4			200		3			100		3			100		2			—		—			—		—			—		—
<620		—		—			—		—			—		—			—		—			—		—			—		—			—		—

Total Flow	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%	$	4,900		100	%	$	6,400		100	%	$	6,300		100	%	$	4,700		100	%

Loan-To-Value Ratio
95.01% and above	$	200		3	%	$	100		2	%	$	100		3	%	$	200		4	%	$	200		3	%	$	200		3	%	$	100		2	%
90.01% to 95.00%		3,900		52			3,300		54			1,900		49			2,300		47			3,000		47			2,700		43			1,900		41
85.01% to 90.00%		2,400		32			1,900		31			1,300		33			1,600		33			2,200		34			2,300		37			1,700		36
85.00% and below		1,000		13			800		13			600		15			800		16			1,000		16			1,100		17			1,000		21

Total Flow	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%	$	4,900		100	%	$	6,400		100	%	$	6,300		100	%	$	4,700		100	%

Origination
Purchase	$	6,400		85	%	$	5,100		84	%	$	3,000		77	%	$	3,800		78	%	$	4,600		72	%	$	3,800		60	%	$	2,200		47	%
Refinance		1,100		15			1,000		16			900		23			1,100		22			1,800		28			2,500		40			2,500		53

Total Flow	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%	$	4,900		100	%	$	6,400		100	%	$	6,300		100	%	$	4,700		100	%

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	162		$	151		$	144		$	457		$	148		$	140		$	144		$	135		$	567

New Risk Written
Flow	$	1,878		$	1,521		$	960		$	4,359		$	1,196		$	1,577		$	1,478		$	1,091		$	5,342
Bulk		—			—			—			—			—			—			—			—			—

Total Primary		1,878			1,521			960			4,359			1,196			1,577			1,478			1,091			5,342
Pool		—			—			—			—			—			—			—			—			—

Total New Risk Written	$	1,878		$	1,521		$	960		$	4,359		$	1,196		$	1,577		$	1,478		$	1,091		$	5,342


Primary Insurance In-Force	$	112,400		$	110,500		$	109,100					$	109,300		$	109,000		$	108,800		$	109,300

Risk In-Force
Flow	$	27,507		$	26,880		$	26,405					$	26,327		$	26,194		$	25,957		$	25,626
Bulk⁽¹⁾		419			434			442						448			456			463			485

Total Primary		27,926			27,314			26,847						26,775			26,650			26,420			26,111
Pool		159			163			171						177			187			196			205

Total Risk In-Force	$	28,085		$	27,477		$	27,018					$	26,952		$	26,837		$	26,616		$	26,316


Primary Risk In-Force Subject To Captives		7	%		7	%		8	%					9	%		10	%		11	%		12	%

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

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

Adjusted Expense Ratio⁽³⁾		23	%		23	%		24	%		23	%		25	%		26	%		25	%		30	%		27	%

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

Gross Written Premiums Ceded To Captives/Total Direct Written Premiums		2	%		3	%		3	%					3	%		4	%		4	%		4	%

Risk To Capital Ratio⁽⁴⁾		15:4:1			14.6:1			18.7:1						19.5:1			22.4:1			22.4:1			24.2:1

Average Primary Loan Size (in thousands)	$	180		$	178		$	176					$	175		$	174		$	172		$	168

Estimated Savings For Loss Mitigation Activities⁽⁵⁾	$	67		$	102		$	114		$	283		$	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 September 30, 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 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

THIRD QUARTER 2014

Loss Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow
Direct	$	148		$	148		$	178		$	474		$	198		$	216		$	197		$	253		$	864
Assumed⁽¹⁾		4			6			6			16			8			9			12			13			42
Ceded		(3	)		(4	)		(15	)		(22	)		(8	)		(9	)		(11	)		(17	)		(45	)
Loss adjustment expenses		4			4			5			13			6			6			6			6			24

Total Flow		153			154			174			481			204			222			204			255			885
Bulk		2			2			2			6			2			3			6			3			14

Total Primary		155			156			176			487			206			225			210			258			899
Pool		1			1			1			3			1			1			2			1			5

Total Paid Claims	$	156		$	157		$	177		$	490		$	207		$	226		$	212		$	259		$	904


Average Paid Claim (in thousands)	$	47.6		$	47.2		$	43.6					$	45.3		$	45.3		$	45.0		$	44.2

Average Direct Paid Claim (in thousands)⁽²⁾	$	46.0		$	45.6		$	44.5					$	43.5		$	43.5		$	42.3		$	43.5

Average Reserve Per Delinquency (in thousands)
Flow	$	30.7		$	30.0		$	30.3					$	29.4		$	29.6		$	30.0		$	29.8
Bulk loans with established reserve		20.5			22.5			19.2						19.7			20.0			20.8			21.9
Bulk loans with no reserve⁽³⁾		—			—			—						—			—			—			—

Reserves:
Flow direct case	$	1,122		$	1,083		$	1,172					$	1,277		$	1,377		$	1,471		$	1,566
Bulk direct case		22			24			25						27			28			29			33
Assumed⁽¹⁾		21			24			29						35			39			51			57
All other⁽⁴⁾		74			125			129						143			143			145			164

Total Reserves	$	1,239		$	1,256		$	1,355					$	1,482		$	1,587		$	1,696		$	1,820


Beginning Reserves	$	1,256		$	1,355		$	1,482		$	1,482		$	1,587		$	1,696		$	1,820		$	2,009		$	2,009
Paid claims		(158	)		(162	)		(192	)		(512	)		(215	)		(235	)		(223	)		(276	)		(949	)
Increase in reserves		141			63			65			269			110			126			99			87			422

Ending Reserves	$	1,239		$	1,256		$	1,355		$	1,239		$	1,482		$	1,587		$	1,696		$	1,820		$	1,482


Beginning Reinsurance Recoverable⁽⁵⁾	$	27		$	31		$	44		$	44		$	50		$	56		$	66		$	80		$	80
Ceded paid claims		(2	)		(5	)		(15	)		(22	)		(8	)		(9	)		(11	)		(17	)		(45	)
Increase in recoverable		—			1			2			3			2			3			1			3			9

Ending Reinsurance Recoverable	$	25		$	27		$	31		$	25		$	44		$	50		$	56		$	66		$	44

Loss Ratio⁽⁶⁾		97	%		43	%		46	%		62	%		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. Lender settlements of $53 million in the third quarter of 2014 increased the loss ratio by 37 percentage points and 12 percentage points for the three and nine months ended September 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		39,485			40,897			43,733						49,255			52,509			55,413			59,789
Bulk loans with an established reserve		1,147			1,147			1,434						1,491			1,509			1,526			1,603
Bulk loans with no reserve⁽¹⁾		515			561			694						713			726			1,260			1,412

Total Number of Primary Delinquencies		41,147			42,605			45,861						51,459			54,744			58,199			62,804


Beginning Number of Primary Delinquencies		42,605			45,861			51,459			51,459			54,744			58,199			62,804			69,239			69,239
New delinquencies		11,574			10,568			12,100			34,242			13,205			14,105			13,192			15,060			55,562
Delinquency cures		(9,790	)		(10,545	)		(13,678	)		(34,013	)		(11,974	)		(12,603	)		(13,127	)		(15,677	)		(53,381	)
Paid claims		(3,242	)		(3,279	)		(4,020	)		(10,541	)		(4,516	)		(4,957	)		(4,670	)		(5,818	)		(19,961	)

Ending Number of Primary Delinquencies		41,147			42,605			45,861			41,147			51,459			54,744			58,199			62,804			51,459

Composition of Cures
Reported delinquent and cured-intraquarter		2,093			1,993			3,141						2,107			2,488			2,447			3,519
Number of missed payments delinquent prior to cure:
3 payments or less		5,202			5,335			7,252						6,253			6,291			6,748			8,125
4 - 11 payments		1,772			2,253			2,391						2,385			2,387			2,737			2,856
12 payments or more		723			964			894						1,229			1,437			1,195			1,177

Total		9,790			10,545			13,678						11,974			12,603			13,127			15,677

Primary Delinquencies by Missed Payment Status
3 payments or less		11,478			11,228			11,351						13,992			14,078			13,871			14,674
4 - 11 payments		9,610			9,913			11,463						12,410			13,134			14,503			16,804
12 payments or more		20,059			21,464			23,047						25,057			27,532			29,825			31,326

Primary Delinquencies		41,147			42,605			45,861						51,459			54,744			58,199			62,804



	September 30, 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		10,996		$	77		$	434			18	%
4 - 11 payments in default		9,316			241			383			63	%
12 payments or more in default		19,173			804			951			85	%

Total		39,485		$	1,122		$	1,768			63	%


	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

THIRD QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2014									2013
	3Q			2Q			1Q			4Q			3Q			2Q			1Q
Risk In-Force by Credit Quality⁽¹⁾
Primary by FICO Scores >679		81	%		81	%		80	%		79	%		79	%		78	%		76	%
Primary by FICO Scores 620-679		15	%		15	%		16	%		17	%		17	%		18	%		19	%
Primary by FICO Scores 575-619		3	%		3	%		3	%		3	%		3	%		3	%		4	%
Primary by FICO Scores <575		1	%		1	%		1	%		1	%		1	%		1	%		1	%

Flow by FICO Scores >679		81	%		81	%		80	%		79	%		79	%		77	%		76	%
Flow by FICO Scores 620-679		15	%		15	%		16	%		17	%		17	%		19	%		19	%
Flow by FICO Scores 575-619		3	%		3	%		3	%		3	%		3	%		3	%		4	%
Flow by FICO Scores <575		1	%		1	%		1	%		1	%		1	%		1	%		1	%

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

Primary A minus		2	%		3	%		3	%		3	%		3	%		3	%		4	%
Primary sub-prime⁽²⁾		2	%		2	%		2	%		2	%		2	%		3	%		3	%

Primary Loans
Primary loans in-force		624,850			620,415			618,442			624,236			627,536			633,685			649,570
Primary delinquent loans		41,147			42,605			45,861			51,459			54,744			58,199			62,804
Primary delinquency rate		6.59	%		6.87	%		7.42	%		8.24	%		8.72	%		9.18	%		9.67	%

Flow loans in-force		591,823			585,719			582,553			586,546			589,703			590,949			590,051
Flow delinquent loans		39,485			40,897			43,733			49,255			52,509			55,413			59,789
Flow delinquency rate		6.67	%		6.98	%		7.51	%		8.40	%		8.90	%		9.38	%		10.13	%

Bulk loans in-force		33,027			34,696			35,889			37,690			37,833			42,736			59,519
Bulk delinquent loans		1,662			1,708			2,128			2,204			2,235			2,786			3,015
Bulk delinquency rate		5.03	%		4.92	%		5.93	%		5.85	%		5.91	%		6.52	%		5.07	%

A minus and sub-prime loans in-force		34,825			36,219			37,714			39,307			41,081			42,993			44,873
A minus and sub-prime delinquent loans		8,017			8,238			8,789			10,023			10,548			10,803			11,484
A minus and sub-prime delinquency rate		23.02	%		22.74	%		23.30	%		25.50	%		25.68	%		25.13	%		25.59	%

Pool Loans
Pool loans in-force		10,125			10,336			10,710			11,354			11,657			12,063			12,558
Pool delinquent loans		549			546			575			628			670			634			674
Pool delinquency rate		5.42	%		5.28	%		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

THIRD QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	September 30, 2014									June 30, 2014									September 30, 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⁾		29	%		20	%		8.46	%		30	%		20	%		9.01	%		33	%		20	%		11.87	%
South Central⁽³⁾		8			16			4.63	%		7			16			4.73	%		8			16			6.03	%
Northeast⁽⁴⁾		26			15			11.03	%		25			15			11.17	%		19			15			12.52	%
Pacific⁽⁵⁾		10			12			4.87	%		10			12			5.28	%		11			12			7.11	%
North Central⁽⁶⁾		9			12			5.64	%		10			11			5.89	%		11			11			8.00	%
Great Lakes⁽⁷⁾		6			10			4.64	%		6			10			4.90	%		6			10			6.46	%
New England⁽⁸⁾		5			6			6.47	%		5			6			6.69	%		4			6			8.19	%
Mid-Atlantic⁽⁹⁾		5			5			6.50	%		5			5			6.79	%		5			5			8.47	%
Plains⁽¹⁰⁾		2			4			4.44	%		2			5			4.50	%		3			5			5.70	%

Total		100	%		100	%		6.59	%		100	%		100	%		6.87	%		100	%		100	%		8.72	%


By State
California		4	%		7	%		3.29	%		4	%		7	%		3.42	%		4	%		7	%		4.72	%
Texas		3	%		7	%		4.57	%		3	%		7	%		4.66	%		3	%		7	%		5.68	%
New York		12	%		6	%		11.14	%		11	%		6	%		11.11	%		8	%		7	%		11.81	%
Florida		20	%		6	%		14.03	%		21	%		6	%		15.71	%		22	%		6	%		21.13	%
Illinois		6	%		5	%		7.20	%		6	%		5	%		7.82	%		7	%		5	%		10.81	%
New Jersey		10	%		4	%		15.12	%		10	%		4	%		15.45	%		8	%		4	%		17.66	%
Pennsylvania		4	%		4	%		8.02	%		4	%		4	%		8.25	%		3	%		4	%		9.91	%
Georgia		3	%		4	%		6.67	%		3	%		4	%		6.76	%		3	%		4	%		9.24	%
Ohio		2	%		4	%		5.20	%		2	%		4	%		5.44	%		2	%		4	%		7.09	%
North Carolina		2	%		4	%		5.97	%		2	%		4	%		6.04	%		3	%		4	%		8.06	%

⁽¹⁾	Total reserves were $1,239 million, $1,256 million and $1,587 million as of September 30, 2014, June 30, 2014, and September 30, 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

THIRD QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	September 30, 2014					June 30, 2014					September 30, 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)	$	27,926		6.59	%	$	27,314		6.87	%	$	26,650		8.72	%
Top 10 lenders		12,337		7.79	%		12,393		7.96	%		12,736		9.87	%
Top 20 lenders		14,309		7.63	%		14,328		7.88	%		14,524		9.84	%

Loan-to-value ratio
95.01% and above	$	6,912		9.02	%	$	7,107		8.91	%	$	7,444		10.75	%
90.01% to 95.00%		11,412		5.36	%		10,738		5.86	%		9,747		8.00	%
80.01% to 90.00%		9,230		6.40	%		9,081		6.73	%		9,052		8.53	%
80.00% and below		372		3.51	%		388		3.45	%		407		3.66	%

Total	$	27,926		6.59	%	$	27,314		6.87	%	$	26,650		8.72	%

Loan grade
Prime	$	26,627		5.62	%	$	25,965		5.88	%	$	25,135		7.54	%
A minus and sub-prime		1,299		23.02	%		1,349		22.74	%		1,515		25.68	%

Total	$	27,926		6.59	%	$	27,314		6.87	%	$	26,650		8.72	%

Loan type⁽¹⁾
First mortgages
Fixed rate mortgage
Flow	$	27,228		6.49	%	$	26,581		6.79	%	$	25,843		8.68	%
Bulk		404		4.80	%		419		4.72	%		440		5.64	%
Adjustable rate mortgage
Flow		279		27.78	%		299		27.80	%		351		28.82	%
Bulk		15		12.11	%		15		11.09	%		16		14.24	%
Second mortgages		—		—	%		—		—	%		—		—	%

Total	$	27,926		6.59	%	$	27,314		6.87	%	$	26,650		8.72	%

Type of documentation
Alt-A
Flow	$	410		29.79	%	$	432		29.50	%	$	501		31.50	%
Bulk		30		12.17	%		29		11.53	%		30		12.61	%
Standard⁽²⁾
Flow		27,097		6.35	%		26,448		6.65	%		25,693		8.51	%
Bulk		389		4.64	%		405		4.51	%		426		5.48	%

Total	$	27,926		6.59	%	$	27,314		6.87	%	$	26,650		8.72	%

Mortgage term
15 years and under	$	1,099		0.82	%	$	1,115		0.80	%	$	1,077		0.91	%
More than 15 years		26,827		7.00	%		26,199		7.31	%		25,573		9.30	%

Total	$	27,926		6.59	%	$	27,314		6.87	%	$	26,650		8.72	%

⁽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

THIRD QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	September 30, 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		6.33	%		7.4	%	$	3,510			3.1	%	$	792		2.8	%		16.27	%
2004		5.74	%		5.1			2,426			2.2			577		2.1			12.71	%
2005		5.69	%		12.3			4,859			4.3			1,294		4.6			14.42	%
2006		5.94	%		17.6			7,516			6.7			1,909		6.8			14.02	%
2007		5.87	%		37.5			17,908			15.9			4,490		16.1			13.36	%
2008		5.39	%		17.7			15,805			14.1			3,991		14.3			7.40	%
2009		4.98	%		0.7			2,768			2.5			627		2.3			1.85	%
2010		4.69	%		0.6			3,624			3.2			855		3.1			1.31	%
2011		4.50	%		0.5			4,892			4.4			1,216		4.4			1.00	%
2012		3.78	%		0.3			12,042			10.7			2,997		10.7			0.36	%
2013		3.96	%		0.3			19,955			17.7			4,894		17.5			0.23	%
2014		4.43	%		—			17,145			15.2			4,284		15.3			0.06	%

Total		5.02	%		100.0	%	$	112,450			100.0	%	$	27,926		100.0	%		6.59	%


	September 30, 2014						June 30, 2014
Occupancy and Property Type	% of Primary Risk In-Force			Deliquency Rate			% of Primary Risk In-Force			Deliquency Rate
Occupancy Status
Primary residence		95.0	%		6.51	%		94.8	%		6.79	%
Second home		2.6			7.00	%		2.7			7.6	%
Non-owner occupied		2.4			8.13	%		2.5			8.14	%

Total		100.0	%		6.59	%		100.0	%		6.87	%

Property Type
Single family detached		88.8	%		6.35	%		88.5	%		6.61	%
Condominium and co-operative		9.7			7.39	%		9.9			7.86	%
Multi-family and other		1.5			13.69	%		1.6			13.86	%

Total		100.0	%		6.59	%		100.0	%		6.87	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $1,239 million as of September 30, 2014.

Corporate and Other Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Loss—Corporate and Other Division

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	186		$	200		$	176		$	562		$	159		$	160		$	156		$	166		$	641
Net investment income		50			56			53			159			67			53			68			69			257
Net investment gains (losses)		(24	)		(3	)		(17	)		(44	)		19			(24	)		(9	)		(52	)		(66	)
Insurance and investment product fees and other		52			53			54			159			55			56			53			100			264

Total revenues		264			306			266			836			300			245			268			283			1,096

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		65			62			54			181			48			49			51			43			191
Interest credited		30			29			29			88			30			28			29			32			119
Acquisition and operating expenses, net of deferrals		138			155			135			428			135			162			140			179			616
Amortization of deferred acquisition costs and intangibles		36			40			42			118			35			28			38			18			119
Interest expense		84			91			98			273			89			90			89			94			362

Total benefits and expenses		353			377			358			1,088			337			357			347			366			1,407

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(89	)		(71	)		(92	)		(252	)		(37	)		(112	)		(79	)		(83	)		(311	)
Provision (benefit) for income taxes		2			(23	)		(50	)		(71	)		(14	)		(22	)		(28	)		(26	)		(90	)

LOSS FROM CONTINUING OPERATIONS		(91	)		(48	)		(42	)		(181	)		(23	)		(90	)		(51	)		(57	)		(221	)
Income (loss) from discontinued operations, net of taxes		—			—			—			—			—			2			6			(20	)		(12	)

NET LOSS		(91	)		(48	)		(42	)		(181	)		(23	)		(88	)		(45	)		(77	)		(233	)
ADJUSTMENTS TO NET LOSS:
Net investment (gains) losses, net		11			1			10			22			(10	)		11			—			21			22
(Gains) losses on early extinguishment of debt, net		—			—			—			—			—			20			—			—			20
Expenses related to restructuring, net		—			—			—			—			—			—			3			—			3
(Income) loss from discontinued operations, net of taxes		—			—			—			—			—			(2	)		(6	)		20			12

NET OPERATING LOSS	$	(80	)	$	(47	)	$	(32	)	$	(159	)	$	(33	)	$	(59	)	$	(48	)	$	(36	)	$	(176	)


Effective tax rate (operating loss)		-10.5	%		33.0	%		57.5	%		27.2	%		37.5	%		8.1	%		35.9	%		28.2	%		27.4	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Three months ended September 30, 2014	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	185		$	1		$	—		$	186
Net investment income		27			32			(9	)		50
Net investment gains (losses)		—			(33	)		9			(24	)
Insurance and investment product fees and other		2			53			(3	)		52

Total revenues		214			53			(3	)		264

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		52			13			—			65
Interest credited					30			—			30
Acquisition and operating expenses, net of deferrals		117			22			(1	)		138
Amortization of deferred acquisition costs and intangibles		30			5			1			36
Interest expense		10			—			74			84

Total benefits and expenses		209			70			74			353

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		5			(17	)		(77	)		(89	)
Provision (benefit) for income taxes		3			(5	)		4			2

INCOME (LOSS) FROM CONTINUING OPERATIONS		2			(12	)		(81	)		(91	)

NET INCOME (LOSS)		2			(12	)		(81	)		(91	)

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net		1			17			(7	)		11

NET OPERATING INCOME (LOSS)	$	3		$	5		$	(88	)	$	(80	)


Effective tax rate (operating income (loss))		47.7	%		48.2	%		-0.9	%		-10.5	%
Three months ended September 30, 2013	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	159		$	1		$	—		$	160
Net investment income		26			33			(6	)		53
Net investment gains (losses)		1			(14	)		(11	)		(24	)
Insurance and investment product fees and other		1			53			2			56

Total revenues		187			73			(15	)		245

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		40			9			—			49
Interest credited		—			28			—			28
Acquisition and operating expenses, net of deferrals		106			18			38			162
Amortization of deferred acquisition costs and intangibles		25			2			1			28
Interest expense		9			—			81			90

Total benefits and expenses		180			57			120			357

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		7			16			(135	)		(112	)
Provision (benefit) for income taxes		3			(5	)		(20	)		(22	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		4			21			(115	)		(90	)
Loss from discontinued operations, net of taxes		—			—			2			2

NET INCOME (LOSS)		4			21			(113	)		(88	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		—			4			7			11
(Gains) losses on early extinguishment of debt, net		—			—			20			20
(Income) loss from discontinued operations, net of taxes		—			—			(2	)		(2	)

NET OPERATING INCOME (LOSS)	$	4		$	25		$	(88	)	$	(59	)


Effective tax rate (operating income (loss))		36.7	%		-6.9	%		6.3	%		8.1	%

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Nine months ended September 30, 2014	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	559		$	3		$	—		$	562
Net investment income		79			97			(17	)		159
Net investment gains (losses)		1			(43	)		(2	)		(44	)
Insurance and investment product fees and other		5			158			(4	)		159

Total revenues		644			215			(23	)		836

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		154			27			—			181
Interest credited					88			—			88
Acquisition and operating expenses, net of deferrals		352			62			14			428
Amortization of deferred acquisition costs and intangibles		90			26			2			118
Interest expense		34			1			238			273

Total benefits and expenses		630			204			254			1,088

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		14			11			(277	)		(252	)
Provision (benefit) for income taxes		2			—			(73	)		(71	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		12			11			(204	)		(181	)

NET INCOME (LOSS)		12			11			(204	)		(181	)

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net		—			21			1			22

NET OPERATING INCOME (LOSS)	$	12		$	32		$	(203	)	$	(159	)


Effective tax rate (operating income (loss))		10.6	%		26.1	%		26.2	%		27.2	%
Nine months ended September 30, 2013	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	478		$	4		$	—		$	482
Net investment income		90			101			(1	)		190
Net investment gains (losses)		23			(82	)		(26	)		(85	)
Insurance and investment product fees and other		3			162			44			209

Total revenues		594			185			17			796

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		120			23			—			143
Interest credited		—			89			—			89
Acquisition and operating expenses, net of deferrals		326			60			95			481
Amortization of deferred acquisition costs and intangibles		79			(3	)		8			84
Interest expense		34			1			238			273

Total benefits and expenses		559			170			341			1,070

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		35			15			(324	)		(274	)
Provision (benefit) for income taxes		12			(2	)		(86	)		(76	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		23			17			(238	)		(198	)
Income (loss) from discontinued operations, net of taxes		—			—			(12	)		(12	)

NET INCOME (LOSS)		23			17			(250	)		(210	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(15	)		30			17			32
(Gains) losses on early extinguishment of debt, net		—			—			20			20
Expenses related to restructuring, net		3			—			—			3
(Income) loss from discontinued operations, net of taxes		—			—			12			12

NET OPERATING INCOME (LOSS)	$	11		$	47		$	(201	)	$	(143	)


Effective tax rate (operating income (loss))		31.6	%		24.4	%		24.9	%		24.4	%

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

International Protection Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Income and Sales—International Protection Segment

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	185		$	199		$	175		$	559		$	158		$	159		$	154		$	165		$	636
Net investment income		27			22			30			79			29			26			31			33			119
Net investment gains (losses)		—			—			1			1			4			1			16			6			27
Insurance and investment product fees and other		2			2			1			5			1			1			1			1			4

Total revenues		214			223			207			644			192			187			202			205			786

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		52			56			46			154			39			40			41			39			159
Interest credited		—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		117			126			109			352			107			106			110			110			433
Amortization of deferred acquisition costs and intangibles		30			30			30			90			27			25			26			28			106
Interest expense		10			9			15			34			8			9			11			14			42

Total benefits and expenses		209			221			200			630			181			180			188			191			740

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		5			2			7			14			11			7			14			14			46
Provision (benefit) for income taxes		3			—			(1	)		2			(5	)		3			5			4			7

INCOME FROM CONTINUING OPERATIONS		2			2			8			12			16			4			9			10			39

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

NET OPERATING INCOME⁽¹⁾	$	3		$	2		$	7		$	12		$	13		$	4		$	1		$	6		$	24



Effective tax rate (operating income)		47.7	%		6.8	%		-22.3	%		10.6	%		-95.6	%		36.7	%		38.7	%		26.1	%		-5.1	%

Net Premiums Written
Northern Europe	$	94		$	104		$	115		$	313		$	104		$	113		$	106		$	106		$	429
Southern Europe		76			86			108			270			72			71			74			78			295
Structured Deals^(2),(3)		5			—			1			6			7			8			(10	)		28			33
New Markets⁽²⁾		7			15			11			33			9			9			14			21			53

Pre-Deposit Accounting Basis^(2),(4)		182			205			235			622			192			201			184			233			810

Deposit Accounting Adjustments⁽²⁾		17			6			39			62			40			47			35			80			202

Total⁽⁵⁾	$	165		$	199		$	196		$	560		$	152		$	154		$	149		$	153		$	608


Loss Ratio		28	%		28	%		26	%		28	%		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 $3 million and $12 million for the three and nine months ended September 30, 2014, respectively.

⁽²⁾

Amounts for prior periods have been re-presented as a result of classification differences between pre-deposit accounting amounts and deposit accounting adjustments. There was no impact on total net premiums written or other pre-deposit or deposit accounting amounts presented elsewhere herein from the classification changes.

⁽³⁾	Structured deals represent in-force blocks of business acquired through reinsurance arrangements and ongoing reciprocal arrangements in place with certain clients.

⁽⁴⁾

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 is not a substitute for net premiums written determined in accordance with GAAP.

⁽⁵⁾	Net premiums written adjusted for foreign exchange as compared to the prior year period for the International Protection segment were $161 million and $542 million for the three and nine months ended September 30, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

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

(amounts in millions)


	3Q 2014									2Q 2014									1Q 2014									Total 2014
	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	$	185		$	34		$	219		$	199		$	41		$	240		$	175		$	43		$	218		$	559		$	118		$	677
Net investment income		27			(10	)		17			22			(7	)		15			30			(10	)		20			79			(27	)		52
Net investment gains (losses)		—			—			—			—			—			—			1			—			1			1			—			1
Insurance and investment product fees and other		2			—			2			2			—			2			1			—			1			5			—			5

Total revenues		214			24			238			223			34			257			207			33			240			644			91			735

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		52			9			61			56			20			76			46			20			66			154			49			203
Interest credited		—			—			—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		117			9			126			126			8			134			109			9			118			352			26			378
Amortization of deferred acquisition costs and intangibles		30			8			38			30			9			39			30			10			40			90			27			117
Interest expense		10			(2	)		8			9			(3	)		6			15			(6	)		9			34			(11	)		23

Total benefits and expenses		209			24			233			221			34			255			200			33			233			630			91			721

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		5			—			5			2			—			2			7			—			7			14			—			14
Provision (benefit) for income taxes		3			—			3			—			—			—			(1	)		—			(1	)		2			—			2

INCOME FROM CONTINUING OPERATIONS		2			—			2			2			—			2			8			—			8			12			—			12

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		1			—			1			—			—			—			(1	)		—			(1	)		—			—			—

NET OPERATING INCOME⁽¹⁾	$	3		$	—		$	3		$	2		$	—		$	2		$	7		$	—		$	7		$	12		$	—		$	12

Effective tax rate (operating income)		47.7	%					47.7	%		6.8	%					6.8	%		-22.3	%					-22.3	%		10.6	%					10.6	%

Other Metrics:
Premiums	$	185		$	34		$	219		$	199		$	41		$	240		$	175		$	43		$	218		$	559		$	118		$	677
Benefits and other changes in policy reserves		52			9			61			56			20			76			46			20			66			154			49			203
Commissions⁽²⁾		87			6			93			96			8			104			81			9			90			264			23			287

Margin before profit sharing		46			19			65			47			13			60			48			14			62			141			46			187
Profit share⁽²⁾		22			10			32			18			10			28			19			9			28			59			29			88

Underwriting profit⁽³⁾	$	24		$	9		$	33		$	29		$	3		$	32		$	29		$	5		$	34		$	82		$	17		$	99


Loss Ratio		28	%					28	%		28	%					32	%		26	%					30	%		28	%					30	%

Underwriting Margin⁽³⁾		13	%					15	%		15	%					13	%		17	%					16	%		15	%					15	%

Combined Ratio⁽⁴⁾		108	%					103	%		107	%					104	%		106	%					103	%		107	%					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 is not a substitute for income statement activity determined in accordance with 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 $3 million and $12 million for the three and nine months ended September 30, 2014, respectively.

⁽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

THIRD 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			(3	)			—				(3	)			—				—				—				(11	)			—				(11	)			(4	)			—				(4	)			(18	)			—				(18	)
Expenses related to restructuring, net			—				—				—				—				—				—				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	%

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 is not a substitute for income statement activity determined in accordance with 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⁾	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

THIRD QUARTER 2014

Net Operating Income—Runoff Segment

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	1		$	1		$	1		$	3		$	1		$	1		$	2		$	1		$	5
Net investment income		32			33			32			97			38			33			34			34			139
Net investment gains (losses)		(33	)		3			(13	)		(43	)		24			(14	)		(20	)		(48	)		(58	)
Insurance and investment product fees and other		53			52			53			158			54			53			53			56			216

Total revenues		53			89			73			215			117			73			69			43			302

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		13			6			8			27			9			9			10			4			32
Interest credited		30			29			29			88			30			28			29			32			119
Acquisition and operating expenses, net of deferrals		22			20			20			62			21			18			22			20			81
Amortization of deferred acquisition costs and intangibles		5			10			11			26			9			2			8			(13	)		6
Interest expense		—			1			—			1			1			—			1			—			2

Total benefits and expenses		70			66			68			204			70			57			70			43			240

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(17	)		23			5			11			47			16			(1	)		—			62
Provision (benefit) for income taxes		(5	)		5			—			—			15			(5	)		—			3			13

INCOME (LOSS) FROM CONTINUING OPERATIONS		(12	)		18			5			11			32			21			(1	)		(3	)		49

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		17			(3	)		7			21			(13	)		4			7			19			17

NET OPERATING INCOME	$	5		$	15		$	12		$	32		$	19		$	25		$	6		$	16		$	66


Effective tax rate (operating income)		48.2	%		16.1	%		25.1	%		26.1	%		28.1	%		-6.9	%		40.9	%		44.8	%		25.5	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Selected Operating Performance Measures—Runoff Segment

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Variable Annuities—Income Distribution Series
Account value, beginning of the period	$	5,984		$	5,990		$	6,061		$	6,061		$	6,044		$	5,983		$	6,202		$	6,141		$	6,141
Deposits		12			13			16			41			19			19			18			20			76
Surrenders, benefits and product charges		(204	)		(210	)		(198	)		(612	)		(212	)		(186	)		(183	)		(173	)		(754	)

Net flows		(192	)		(197	)		(182	)		(571	)		(193	)		(167	)		(165	)		(153	)		(678	)
Interest credited and investment performance		(29	)		191			111			273			210			228			(54	)		214			598

Account value, end of the period		5,763			5,984			5,990			5,763			6,061			6,044			5,983			6,202			6,061

Traditional Variable Annuities
Account value, net of reinsurance, beginning of the period		1,583			1,598			1,643			1,643			1,620			1,601			1,674			1,662			1,662
Deposits		2			4			3			9			4			4			2			3			13
Surrenders, benefits and product charges		(81	)		(80	)		(78	)		(239	)		(71	)		(67	)		(80	)		(81	)		(299	)

Net flows		(79	)		(76	)		(75	)		(230	)		(67	)		(63	)		(78	)		(78	)		(286	)
Interest credited and investment performance		(12	)		61			30			79			90			82			5			90			267

Account value, net of reinsurance, end of the period		1,492			1,583			1,598			1,492			1,643			1,620			1,601			1,674			1,643

Variable Life Insurance
Account value, beginning of the period		317			313			316			316			302			293			301			292			292
Deposits		2			2			2			6			3			2			2			2			9
Surrenders, benefits and product charges		(10	)		(8	)		(11	)		(29	)		(9	)		(10	)		(11	)		(9	)		(39	)

Net flows		(8	)		(6	)		(9	)		(23	)		(6	)		(8	)		(9	)		(7	)		(30	)
Interest credited and investment performance		2			10			6			18			20			17			1			16			54

Account value, end of the period		311			317			313			311			316			302			293			301			316

Total	$	7,566		$	7,884		$	7,901		$	7,566		$	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	$	667		$	891		$	896		$	896		$	1,036		$	1,077		$	1,970		$	2,153		$	2,153
Surrenders and benefits		(142	)		(225	)		(7	)		(374	)		(142	)		(43	)		(900	)		(167	)		(1,252	)

Net flows		(142	)		(225	)		(7	)		(374	)		(142	)		(43	)		(900	)		(167	)		(1,252	)
Interest credited		1			1			2			4			2			2			7			15			26
Foreign currency translation		—			—			—			—			—			—			—			(31	)		(31	)

Account value, end of the period	$	526		$	667		$	891		$	526		$	896		$	1,036		$	1,077		$	1,970		$	896

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Net Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		(9	)		1			(9	)		(17	)		—			(6	)		3			2			(1	)
Net investment gains (losses)		9			(6	)		(5	)		(2	)		(9	)		(11	)		(5	)		(10	)		(35	)
Insurance and investment product fees and other		(3	)		(1	)		—			(4	)		—			2			(1	)		43			44

Total revenues		(3	)		(6	)		(14	)		(23	)		(9	)		(15	)		(3	)		35			8

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			—			—			—			—			—			—			—			—
Interest credited		—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		(1	)		9			6			14			7			38			8			49			102
Amortization of deferred acquisition costs and intangibles		1			—			1			2			(1	)		1			4			3			7
Interest expense		74			81			83			238			80			81			77			80			318

Total benefits and expenses		74			90			90			254			86			120			89			132			427

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(77	)		(96	)		(104	)		(277	)		(95	)		(135	)		(92	)		(97	)		(419	)
Provision (benefit) for income taxes		4			(28	)		(49	)		(73	)		(24	)		(20	)		(33	)		(33	)		(110	)

LOSS FROM CONTINUING OPERATIONS		(81	)		(68	)		(55	)		(204	)		(71	)		(115	)		(59	)		(64	)		(309	)
Income (loss) from discontinued operations, net of taxes⁽²⁾		—			—			—			—			—			2			6			(20	)		(12	)

NET LOSS		(81	)		(68	)		(55	)		(204	)		(71	)		(113	)		(53	)		(84	)		(321	)

ADJUSTMENTS TO NET LOSS:
Net investment (gains) losses, net		(7	)		4			4			1			6			7			4			6			23
(Gains) losses on early extinguishment of debt, net		—			—			—			—			—			20			—			—			20
(Income) loss from discontinued operations, net of taxes		—			—			—			—			—			(2	)		(6	)		20			12

NET OPERATING LOSS	$	(88	)	$	(64	)	$	(51	)	$	(203	)	$	(65	)	$	(88	)	$	(55	)	$	(58	)	$	(266	)


Effective tax rate (operating loss)		-0.9	%		28.8	%		47.8	%		26.2	%		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

THIRD QUARTER 2014

Investments Summary

(amounts in millions)


		September 30, 2014					June 30, 2014					March 31, 2014					December 31, 2013					September 30, 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		$	36,587		48	%	$	36,726		48	%	$	35,526		48	%	$	34,666		48	%	$	35,503		49	%
Private fixed maturity securities			11,493		15			11,608		15			11,125		15			10,563		15			10,277		14
Residential mortgage-backed securities⁽¹⁾			5,003		7			5,057		7			4,945		7			5,069		7			5,187		7
Commercial mortgage-backed securities			2,517		3			2,630		3			2,656		4			2,639		4			2,520		4
Other asset-backed securities			3,770		5			3,700		5			3,343		4			3,119		4			2,992		4
Tax-exempt			356		—			353		—			317		—			295		—			263		—
Non-investment grade fixed maturity securities			2,591		4			2,286		3			2,332		3			2,278		3			2,344		3
Equity securities:
Common stocks and mutual funds			221		—			227		—			260		—			258		—			303		1
Preferred stocks			92		—			93		—			89		—			83		—			76		—
Commercial mortgage loans			6,077		8			5,986		8			5,894		8			5,899		8			5,858		8
Restricted commercial mortgage loans related to securitization entities			209		—			217		—			227		—			233		—			290		—
Policy loans			1,512		2			1,514		2			1,438		2			1,434		2			1,668		2
Cash, cash equivalents and short-term investments			3,655		5			4,220		5			4,492		6			4,434		6			3,767		5
Securities lending			339		—			277		—			261		—			187		—			154		—
Other invested assets:	Limited partnerships		262		—			263		1			267		—			282		1			297		1
	Derivatives:
	Long-term care (LTC) forward starting swap—cash flow		252		—			197		—			137		—			79		—			147		—
	Other cash flow		10		—			20		—			30		—			46		—			3		—
	Fair value		—		—			—		—			—		—			1		—			1		—
	Equity index options—non-qualified		11		—			4		—			11		—			13		—			6		—
	Other non-qualified		391		1			395		1			352		1			332		1			370		1
	Trading portfolio		226		—			226		—			247		—			239		—			278		—
	Counterparty collateral		521		1			417		1			355		1			199		—			272		—
	Restricted other invested assets related to securitization entities		404		1			404		1			398		1			391		1			392		1
	Other		91		—			82		—			83		—			88		—			85		—

Total invested assets and cash		$	76,590		100	%	$	76,902		100	%	$	74,785		100	%	$	72,827		100	%	$	73,053		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	15,459		33	%	$	15,552		33	%	$	15,338		34	%	$	15,148		34	%	$	15,859		35	%
AA			4,957		11			5,056		11			4,759		10			4,627		11			4,776		11
A			13,823		30			13,470		29			12,920		29			12,488		28			12,674		28
BBB			10,753		23			11,162		24			10,847		24			10,720		24			10,426		23
BB			1,388		3			1,232		3			1,251		3			1,148		3			1,134		3
B			78		—			82		—			87		—			132		—			128		—
CCC and lower			113		—			113		—			114		—			112		—			130		—

Total public fixed maturity securities		$	46,571		100	%	$	46,667		100	%	$	45,316		100	%	$	44,375		100	%	$	45,127		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	1,585		10	%	$	1,636		10	%	$	1,554		10	%	$	1,483		11	%	$	1,453		10	%
AA			1,902		12			1,800		12			1,661		11			1,570		11			1,551		11
A			5,034		32			5,027		32			4,593		31			4,331		30			4,247		31
BBB			6,213		39			6,371		40			6,240		42			5,984		42			5,756		41
BB			838		5			723		5			740		5			736		5			798		6
B			95		1			57		—			57		—			56		—			63		—
CCC and lower			79		1			79		1			83		1			94		1			91		1

Total private fixed maturity securities		$	15,746		100	%	$	15,693		100	%	$	14,928		100	%	$	14,254		100	%	$	13,959		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

THIRD QUARTER 2014

Fixed Maturity Securities Summary

(amounts in millions)


	September 30, 2014					June 30, 2014					March 31, 2014					December 31, 2013					September 30, 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	$	5,642		9	%	$	5,483		9	%	$	5,214		9	%	$	4,810		8	%	$	5,325		9	%
Tax-exempt		356		1			353		1			317		—			295		—			263		—
Foreign government		2,035		3			2,132		3			2,153		4			2,146		4			2,232		4
U.S. corporate		26,956		43			26,847		43			26,060		43			25,035		43			24,782		42
Foreign corporate		15,637		25			15,749		25			15,141		25			15,071		26			15,276		26
Residential mortgage-backed securities		5,155		8			5,212		8			5,102		8			5,225		9			5,397		9
Commercial mortgage-backed securities		2,728		5			2,845		5			2,881		5			2,898		5			2,790		5
Other asset-backed securities		3,808		6			3,739		6			3,376		6			3,149		5			3,021		5

Total fixed maturity securities	$	62,317		100	%	$	62,360		100	%	$	60,244		100	%	$	58,629		100	%	$	59,086		100	%

Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	7,771		19	%	$	7,908		19	%	$	7,506		19	%	$	7,382		19	%	$	7,344		19	%
Utilities and energy		9,901		25			9,890		24			9,494		24			9,213		24			9,084		24
Consumer—non-cyclical		4,778		12			4,825		12			4,837		12			4,669		12			4,722		12
Consumer—cyclical		2,425		6			2,408		6			2,337		6			2,282		6			2,185		6
Capital goods		2,364		6			2,402		6			2,335		6			2,238		6			2,276		6
Industrial		2,948		7			2,885		7			2,734		7			2,595		7			2,592		7
Technology and communications		3,142		8			3,066		8			2,978		8			2,867		8			2,928		8
Transportation		1,729		4			1,702		4			1,653		4			1,595		4			1,593		4
Other		5,411		13			5,699		14			5,469		14			5,471		14			5,534		14

Subtotal		40,469		100	%		40,785		100	%		39,343		100	%		38,312		100	%		38,258		100	%

Non-Investment Grade:
Finance and insurance		483		23	%		306		17	%		332		18	%		337		19	%		376		21	%
Utilities and energy		389		18			338		19			335		18			297		16			338		19
Consumer—non-cyclical		211		10			217		12			229		12			194		11			170		9
Consumer—cyclical		64		3			55		3			60		3			71		4			107		6
Capital goods		291		14			297		16			291		15			295		16			272		15
Industrial		265		12			252		14			254		14			267		15			243		14
Technology and communications		358		17			318		17			330		18			316		18			257		14
Transportation		20		1			16		1			15		1			5		—			26		1
Other		43		2			12		1			12		1			12		1			11		1

Subtotal		2,124		100	%		1,811		100	%		1,858		100	%		1,794		100	%		1,800		100	%

Total	$	42,593		100	%	$	42,596		100	%	$	41,201		100	%	$	40,106		100	%	$	40,058		100	%

Fixed Maturity Securities—Contractual Maturity Dates:

Due in one year or less	$	2,640		4	%	$	2,784		4	%	$	3,118		5	%	$	2,974		5	%	$	2,772		5	%
Due after one year through five years		11,009		18			10,701		17			10,257		17			10,187		17			10,563		18
Due after five years through ten years		13,113		21			13,401		22			12,915		21			12,526		22			12,570		21
Due after ten years		23,864		38			23,678		38			22,595		38			21,670		37			21,973		37

Subtotal		50,626		81			50,564		81			48,885		81			47,357		81			47,878		81
Mortgage and asset-backed securities		11,691		19			11,796		19			11,359		19			11,272		19			11,208		19

Total fixed maturity securities	$	62,317		100	%	$	62,360		100	%	$	60,244		100	%	$	58,629		100	%	$	59,086		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Commercial Mortgage Loans Summary

(amounts in millions)


	September 30, 2014						June 30, 2014						March 31, 2014						December 31, 2013						September 30, 2013
	Carrying Amount			% of Total			Carrying Amount			% of Total			Carrying Amount			% of Total			Carrying Amount			% of Total			Carrying Amount			% of Total
Geographic Region
South Atlantic	$	1,651			27	%	$	1,565			26	%	$	1,526			26	%	$	1,535			26	%	$	1,558			26	%
Pacific		1,646			27			1,607			27			1,601			27			1,590			27			1,624			28
Middle Atlantic		835			14			812			13			823			14			828			14			792			13
Mountain		531			9			514			9			494			8			478			8			462			8
East North Central		392			6			409			7			399			7			404			7			384			7
West North Central		374			6			366			6			370			6			377			6			366			6
West South Central		267			5			254			4			238			4			241			4			237			4
New England		265			4			350			6			335			6			337			6			327			6
East South Central		140			2			136			2			138			2			142			2			143			2

Subtotal		6,101			100	%		6,013			100	%		5,924			100	%		5,932			100	%		5,893			100	%

Allowance for losses		(24	)					(27	)					(30	)					(33	)					(36	)
Unamortized fees and costs		—						—						—						—						1

Total	$	6,077					$	5,986					$	5,894					$	5,899					$	5,858

Property Type
Retail	$	2,147			35	%	$	2,162			36	%	$	2,103			36	%	$	2,073			35	%	$	2,005			34	%
Office		1,642			27			1,533			26			1,509			25			1,558			26			1,610			27
Industrial		1,606			26			1,585			26			1,580			27			1,581			27			1,571			27
Apartments		499			8			480			8			493			8			491			8			473			8
Mixed use/other		207			4			253			4			239			4			229			4			234			4

Subtotal		6,101			100	%		6,013			100	%		5,924			100	%		5,932			100	%		5,893			100	%

Allowance for losses		(24	)					(27	)					(30	)					(33	)					(36	)
Unamortized fees and costs		—						—						—						—						1

Total	$	6,077					$	5,986					$	5,894					$	5,899					$	5,858

Allowance for Losses on Commercial Mortgage Loans
Beginning balance	$	27					$	30					$	33					$	36					$	38
Release		(3	)					(3	)					(3	)					(3	)					(2	)

Ending balance	$	24					$	27					$	30					$	33					$	36

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

Commercial Mortgage Loans Summary

(amounts in millions)


	September 30, 2014					June 30, 2014					March 31, 2014					December 31, 2013					September 30, 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	$	2,445		40	%	$	2,415		40	%	$	2,405		41	%	$	2,435		41	%	$	2,393		41	%
$5 million but less than $10 million		1,704		28			1,687		28			1,645		28			1,638		28			1,594		27
$10 million but less than $20 million		1,498		25			1,380		23			1,376		23			1,358		23			1,315		22
$20 million but less than $30 million		256		4			232		4			204		3			205		3			227		4
$30 million and over		198		3			299		5			294		5			296		5			364		6

Total	$	6,101		100	%	$	6,013		100	%	$	5,924		100	%	$	5,932		100	%	$	5,893		100	%

Commercial Mortgage Loan Information by Vintage as of September 30, 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	$	794		414	$	2		40	%	$	—		—	$	—
2005		960		240	$	4		54	%		—		—	$	—
2006		844		225	$	4		61	%		24		4	$	6
2007		669		148	$	5		69	%		—		—	$	—
2008		232		51	$	5		64	%		6		1	$	6
2009		—		—	$	—		—	%		—		—	$	—
2010		129		59	$	2		43	%		—		—	$	—
2011		266		53	$	5		56	%		—		—	$	—
2012		652		95	$	7		61	%		—		—	$	—
2013		850		138	$	6		64	%		—		—	$	—
2014		705		113	$	—		69	%		—		—	$	—

Total	$	6,101		1,536	$	4		59	%	$	30		5	$	6

⁽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 September 30, 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

General Account GAAP Net Investment Income Yields

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
GAAP Net Investment Income
Fixed maturity securities—taxable	$	651		$	666		$	648		$	1,965		$	663		$	651		$	672		$	656		$	2,642
Fixed maturity securities—non-taxable		3			3			3			9			2			3			2			2			9
Commercial mortgage loans		82			81			83			246			91			81			81			82			335
Restricted commercial mortgage loans related to securitization entities		3			4			4			11			1			8			7			7			23
Equity securities		3			4			4			11			4			3			6			4			17
Other invested assets		36			26			39			101			33			33			33			46			145
Limited partnerships		10			13			11			34			24			8			6			2			40
Restricted other invested assets related to securitization entities		1			1			1			3			4			—			—			—			4
Policy loans		32			32			31			95			32			33			32			32			129
Cash, cash equivalents and short-term investments		7			7			5			19			4			4			5			7			20

Gross investment income before expenses and fees		828			837			829			2,494			858			824			844			838			3,364
Expenses and fees		(23	)		(24	)		(24	)		(71	)		(23	)		(23	)		(23	)		(24	)		(93	)

Net investment income	$	805		$	813		$	805		$	2,423		$	835		$	801		$	821		$	814		$	3,271

Annualized Yields
Fixed maturity securities—taxable		4.6	%		4.7	%		4.6	%		4.6	%		4.7	%		4.7	%		4.9	%		4.7	%		4.8	%
Fixed maturity securities—non-taxable		3.4	%		3.5	%		3.7	%		3.6	%		2.6	%		4.2	%		2.9	%		2.7	%		3.1	%
Commercial mortgage loans		5.4	%		5.5	%		5.6	%		5.5	%		6.2	%		5.5	%		5.5	%		5.6	%		5.7	%
Restricted commercial mortgage loans related to securitization entities		6.6	%		6.7	%		7.0	%		6.6	%		1.5	%		10.5	%		8.6	%		8.4	%		7.6	%
Equity securities		4.2	%		5.3	%		5.1	%		4.9	%		4.7	%		3.2	%		5.7	%		3.4	%		4.2	%
Other invested assets		58.6	%		40.5	%		56.9	%		51.8	%		44.9	%		42.1	%		29.4	%		28.3	%		32.8	%
Limited partnerships⁽¹⁾		15.3	%		19.6	%		16.1	%		16.9	%		33.2	%		10.4	%		7.5	%		2.4	%		12.8	%
Restricted other invested assets related to securitization entities		1.0	%		1.0	%		1.0	%		1.0	%		4.2	%		—	%		—	%		—	%		1.1	%
Policy loans		8.5	%		8.7	%		8.6	%		8.6	%		8.3	%		7.9	%		7.8	%		8.0	%		8.1	%
Cash, cash equivalents and short-term investments		0.7	%		0.6	%		0.4	%		0.6	%		0.4	%		0.4	%		0.5	%		0.7	%		0.5	%

Gross investment income before expenses and fees		4.7	%		4.7	%		4.7	%		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	%		-0.1	%		-0.1	%		-0.1	%

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

Yields are based on net investment income as reported under GAAP and are consistent with how the company measures its investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity and equity securities, derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability. See page 73 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

THIRD QUARTER 2014

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

(amounts in millions)


	2014												2013
	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	5		$	(6	)	$	(9	)	$	(10	)	$	(5	)	$	1		$	22		$	4		$	22
U.S. government, agencies and government-sponsored enterprises		—			2			—			2			5			2			1			—			8
Foreign corporate		2			13			(2	)		13			1			—			8			1			10
Foreign government		—			—			—			—			2			(2	)		8			4			12
Tax-exempt		—			—			(1	)		(1	)		—			—			—			(2	)		(2	)
Mortgage-backed securities		(1	)		—			—			(1	)		(2	)		(9	)		(15	)		(20	)		(46	)
Asset-backed securities		—			—			—			—			(6	)		(5	)		(11	)		(8	)		(30	)
Equity securities		2			6			1			9			5			6			8			3			22
Foreign exchange		—			1			—			1			—			—			—			—			—

Total net realized gains (losses) on available-for-sale securities		8			16			(11	)		13			—			(7	)		21			(18	)		(4	)

Impairments:
Sub-prime residential mortgage-backed securities		—			—			—			—			(1	)		(1	)		—			(2	)		(4	)
Alt-A residential mortgage-backed securities		(1	)		—			—			(1	)		—			—			—			—			—

Total sub-prime and Alt-A residential mortgage-backed securities		(1	)		—			—			(1	)		(1	)		(1	)		—			(2	)		(4	)

Commercial mortgage-backed securities		—			—			—			—			(2	)		(1	)		(2	)		(1	)		(6	)
Corporate fixed maturity securities		—			—			—			—			—			—			—			(4	)		(4	)
Financial hybrid securities		(3	)		—			—			(3	)		—			—			—			—			—
Commercial mortgage loans		—			(1	)		(1	)		(2	)		—			(1	)		(2	)		—			(3	)

Total impairments		(4	)		(1	)		(1	)		(6	)		(3	)		(3	)		(4	)		(7	)		(17	)

Net unrealized gains (losses) on trading securities		3			5			8			16			(5	)		(5	)		(11	)		6			(15	)
Derivative instruments		(25	)		(4	)		(14	)		(43	)		9			(12	)		(2	)		(27	)		(32	)
Limited partnerships		—			(1	)		—			(1	)		—			(2	)		—			—			(2	)
Commercial mortgage loans held-for-sale market valuation allowance		2			2			2			6			(1	)		2			1			1			3
Contingent purchase price valuation change		(1	)		—			—			(1	)		—			—			(1	)		1			—
Net gains (losses) related to securitization entities		(1	)		6			4			9			17			13			9			6			45
Other		—			—			—			—			—			—			—			(1	)		(1	)

Net investment gains (losses), net of taxes		(18	)		23			(12	)		(7	)		17			(14	)		13			(39	)		(23	)
Adjustment for DAC and other intangible amortization and certain benefit reserves, net of taxes		6			1			1			8			—			4			5			12			21
Adjustment for net investment (gains) losses attributable to noncontrolling interests, net of taxes		2			(4	)		1			(1	)		(2	)		(3	)		(3	)		(1	)		(9	)

Net investment gains (losses), net	$	(10	)	$	20		$	(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

THIRD QUARTER 2014

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	(276	)	$	676		$	641		$	560		$	520
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,770		$	11,833		$	11,699		$	11,550		$	11,412
GAAP Basis ROE ^(1)/(2)		-2.3	%		5.7	%		5.5	%		4.8	%		4.6	%

Operating ROE
Net operating income for the twelve months ended⁽¹⁾	$	228		$	684		$	659		$	616		$	584
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,770		$	11,833		$	11,699		$	11,550		$	11,412
Operating ROE^(1)/(2)		1.9	%		5.8	%		5.6	%		5.3	%		5.1	%

Quarterly Average ROE	Three months ended
	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	(844	)	$	176		$	184		$	208		$	108
Average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	11,651		$	12,051		$	11,942		$	11,758		$	11,606
Annualized GAAP Quarterly Basis ROE^(3)/(4)		-29.0	%		5.8	%		6.2	%		7.1	%		3.7	%

Operating ROE
Net operating income (loss) for the period ended⁽³⁾	$	(317	)	$	158		$	194		$	193		$	139
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	11,651		$	12,051		$	11,942		$	11,758		$	11,606
Annualized Operating Quarterly Basis ROE^(3)/(4)		-10.9	%		5.2	%		6.5	%		6.6	%		4.8	%

Non-GAAP Definition for Operating ROE

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

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

⁽²⁾

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

THIRD QUARTER 2014

Reconciliation of Core Yield


		2014												2013
	(Assets—amounts in billions)	3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	76.6		$	76.9		$	74.8		$	76.6		$	72.8		$	73.1		$	72.2		$	76.5		$	72.8
	Subtract:
	Securities lending		0.3			0.3			0.3			0.3			0.2			0.2			0.2			0.2			0.2
	Unrealized gains (losses)		5.4			5.6			4.3			5.4			2.8			3.3			3.7			6.7			2.8
	Derivative counterparty collateral		0.5			0.4			0.4			0.5			0.2			0.3			0.4			0.6			0.2

	Adjusted end of period invested assets and cash	$	70.4		$	70.6		$	69.8		$	70.4		$	69.6		$	69.3		$	67.9		$	69.0		$	69.6

(A)	Average Invested Assets And Cash Used in Reported Yield Calculation	$	70.5		$	70.2		$	69.7		$	70.1		$	69.5		$	68.6		$	68.5		$	69.4		$	69.0
	Subtract:
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		0.2			0.2			0.2			0.2			0.3			0.3			0.2			0.3			0.3

(B)	Average Invested Assets And Cash Used in Core Yield Calculation		70.3			70.0			69.5			69.9			69.2			68.3			68.3			69.1			68.7
	Subtract:
	Portfolios supporting floating products and non-recourse funding obligations⁽²⁾		4.0			4.2			4.3			4.2			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	$	66.3		$	65.8		$	65.2		$	65.7		$	64.8		$	63.7		$	63.1		$	63.4		$	63.7

	(Income—amounts in millions)
(D)	Reported—Net Investment Income	$	805		$	813		$	805		$	2,423		$	835		$	801		$	821		$	814		$	3,271
	Subtract:
	Bond calls and commercial mortgage loan prepayments		17			7			10			34			8			15			14			10			47
	Reinsurance⁽³⁾		19			13			22			54			20			17			21			22			80
	Other non-core items⁽⁴⁾		(18	)		12			5			(1	)		17			4			19			2			42
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		3			3			3			9			3			4			4			4			15

(E)	Core Net Investment Income		784			778			765			2,327			787			761			763			776			3,087
	Subtract:
	Investment income from portfolios supporting floating products and non-recourse funding obligations⁽²⁾		22			23			21			66			27			24			25			25			101

(F)	Core Net Investment Income (excl. Floating and Non-Recourse Funding)	$	762		$	755		$	744		$	2,261		$	760		$	737		$	738		$	751		$	2,986


(D) / (A)	Reported Yield		4.57	%		4.63	%		4.62	%		4.61	%		4.81	%		4.67	%		4.79	%		4.69	%		4.74	%
(E) / (B)	Core Yield		4.46	%		4.45	%		4.40	%		4.44	%		4.55	%		4.46	%		4.47	%		4.49	%		4.49	%
(F) / (C)	Core Yield (excl. Floating and Non-Recourse Funding)		4.60	%		4.59	%		4.56	%		4.58	%		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 is not a substitute for investment yield determined in accordance with GAAP.

⁽¹⁾	Represents the incremental assets and investment income related to restricted commercial mortgage loans and other invested assets.

⁽²⁾	Floating products refer to institutional products and the non-recourse funding obligations that support certain term and universal life insurance reserves in the company’s life insurance business.

⁽³⁾	Represents imputed investment income related to reinsurance agreements in the lifestyle protection insurance business.

⁽⁴⁾	Includes cost basis adjustments on structured securities, preferred stock income and various other immaterial items.

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

THIRD 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

THIRD 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