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

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8-K - FORM 8-K - GENWORTH FINANCIAL INC	d840970d8k.htm
EX-99.1 - EX-99.1 - GENWORTH FINANCIAL INC	d840970dex991.htm

Exhibit 99.2

Fourth Quarter Financial Supplement

December 31, 2014

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014


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

*Fourth 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 (DAC) 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 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

FOURTH QUARTER 2014

Dear Investor,

Thank you for your continued interest in Genworth Financial.

During the fourth quarter of 2014, the company completed its annual loss recognition testing for its long-term care insurance business that resulted in after-tax charges of $478 million on its acquired blocks. The company updated its margin assumptions and methodologies, informed by the work done in connection with the claim reserve review completed in the third quarter of 2014. The company is required to separately test its acquired long-term care insurance blocks for recoverability as part of its loss recognition testing which resulted in a negative margin for those blocks, and the company unlocked the associated active life reserve assumptions, while the margin on the remaining blocks was positive.

During the fourth quarter of 2014 in connection with the preparation of its financial statements, the company recorded after-tax goodwill impairments of $129 million in the long-term care insurance business and $145 million in the life insurance business, in each case, as a result of current market conditions and potential further decreases in sales. The impairments reduced the goodwill of these two businesses to zero.

There was also a $66 million net tax impact in the fourth quarter of 2014 from potential business portfolio changes. Although no decisions have been made, the company recognized a tax charge of $174 million in the fourth quarter of 2014 associated with the Australian mortgage insurance business as the company can no longer assert its intent to permanently reinvest earnings in that business. In connection with the company’s plans to sell the lifestyle protection insurance business, the company completed an internal debt restructuring recognizing tax benefits of $108 million in the fourth quarter of 2014.

Please feel free to call with any questions or comments.

Regards,

Amy Corbin

Investor Relations

804 662.2685

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH 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 fourth quarter of 2014, the company recorded goodwill impairments of $129 million, net of taxes, in the long-term care insurance business and $145 million, net of taxes, in the life insurance business. In the third quarter of 2014, the company recorded goodwill impairments of $167 million, net of taxes, in the long-term care insurance business and $350 million, net of taxes, in the life 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 the following items. There was a $66 million net tax impact in the fourth quarter of 2014 from potential business portfolio changes. Although no decisions have been made, the company recognized a tax charge of $174 million in the fourth quarter of 2014 associated with the Australian mortgage insurance business as the company can no longer assert its intent to permanently reinvest earnings in that business. In connection with the company’s plans to sell the lifestyle protection insurance business, the company completed an internal debt restructuring recognizing tax benefits of $108 million in the fourth quarter of 2014. Also, in the second quarter of 2013, the company recorded a $13 million, net of taxes, expense 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

FOURTH 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 long-term care and term life 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

FOURTH QUARTER 2014

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	10,477	$	11,231	$	12,070	$	12,032	$	11,851
Total accumulated other comprehensive income		4,446		3,934		4,161		3,483		2,542

Total Genworth Financial, Inc.’s stockholders’ equity	$	14,923	$	15,165	$	16,231	$	15,515	$	14,393

Book value per common share	$	30.04	$	30.54	$	32.68	$	31.27	$	29.08
Book value per common share, excluding accumulated other comprehensive income	$	21.09	$	22.62	$	24.31	$	24.25	$	23.95
Common shares outstanding as of the balance sheet date		496.7		496.6		496.6		496.2		494.8

	Twelve months ended
Twelve Month Rolling Average ROE	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
GAAP Basis ROE		-10.8%		-2.3%		5.7%		5.5%		4.8%
Operating ROE⁽¹⁾		-3.3%		1.9%		5.8%		5.6%		5.3%

	Three months ended
Quarterly Average ROE	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
GAAP Basis ROE		-28.0%		-29.0%		5.8%		6.2%		7.1%
Operating ROE⁽¹⁾		-15.3%		-10.9%		5.2%		6.5%		6.6%


Basic and Diluted Shares	Three months ended December 31, 2014		Twelve months ended December 31, 2014
Weighted-average common shares used in basic earnings per common share calculations		496.7		496.4
Potentially dilutive securities:
Stock options, restricted stock units and stock appreciation rights		—		—

Weighted-average common shares used in diluted earnings per common share calculations⁽²⁾		496.7		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 and twelve months ended December 31, 2014, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three and twelve months ended December 31, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 3.2 million and 5.6 million, respectively, would have been antidilutive to the calculation. If the company had not incurred a net loss and net operating loss for the three and twelve months ended December 31, 2014, dilutive potential weighted-average common shares outstanding would have been 499.9 million and 502.0 million, respectively.

Fourth Quarter Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


	2014														2013
	4Q			3Q			2Q		1Q			Total			4Q		3Q			2Q		1Q			Total
REVENUES:
Premiums	$	1,386		$	1,395		$	1,343	$	1,307		$	5,431		$	1,310	$	1,291		$	1,286	$	1,261		$	5,148
Net investment income		819			805			813		805			3,242			835		801			821		814			3,271
Net investment gains (losses)		(10	)		(27	)		34		(17	)		(20	)		26		(23	)		21		(61	)		(37	)
Insurance and investment product fees and other		229			231			225		227			912			241		248			243		289			1,021

Total revenues		2,424			2,404			2,415		2,322			9,565			2,412		2,317			2,371		2,303			9,403

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		2,184			1,986			1,256		1,194			6,620			1,256		1,169			1,269		1,201			4,895
Interest credited		185			185			184		183			737			186		184			184		184			738
Acquisition and operating expenses, net of deferrals		405			398			404		378			1,585			406		407			413		433			1,659
Amortization of deferred acquisition costs and intangibles		156			143			138		134			571			128		182			137		122			569
Goodwill impairment		299			550			—		—			849			—		—			—		—			—
Interest expense		118			114			120		127			479			121		124			121		126			492

Total benefits and expenses		3,347			3,376			2,102		2,016			10,841			2,097		2,066			2,124		2,066			8,353

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(923	)		(972	)		313		306			(1,276	)		315		251			247		237			1,050
Provision (benefit) for income taxes		(215	)		(185	)		85		87			(228	)		70		105			73		76			324

INCOME (LOSS) FROM CONTINUING OPERATIONS		(708	)		(787	)		228		219			(1,048	)		245		146			174		161			726
Income (loss) from discontinued operations, net of taxes⁽¹⁾		—			—			—		—			—			—		2			6		(20	)		(12	)

NET INCOME (LOSS)		(708	)		(787	)		228		219			(1,048	)		245		148			180		141			714
Less: net income attributable to noncontrolling interests		52			57			52		35			196			37		40			39		38			154

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	(760	)	$	(844	)	$	176	$	184		$	(1,244	)	$	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	$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)	$	0.42	$	0.21		$	0.27	$	0.25		$	1.16
Diluted	$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)	$	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	$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)	$	0.42	$	0.22		$	0.29	$	0.21		$	1.13
Diluted	$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)	$	0.41	$	0.22		$	0.28	$	0.21		$	1.12
Weighted-average common shares outstanding
Basic		496.7			496.6			496.6		495.8			496.4			494.7		494.0			493.4		492.5			493.6
Diluted⁽²⁾		496.7			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⁾

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations and net loss for the three months ended September 30, 2014 and the three and twelve months ended December 31, 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 and the three and twelve months ended December 31, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million, 3.2 million and 5.6 million, respectively, would have been antidilutive to the calculation. If the company had not incurred a net loss for the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, dilutive potential weighted-average common shares outstanding would have been 502.0 million, 499.9 million and 502.0 million, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Income (Loss) by Segment by Quarter

(amounts in millions, except per share amounts)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
U.S. Life Insurance Division
U.S. Life Insurance segment:
Long-Term Care Insurance	$	(506	)	$	(361	)	$	6		$	46		$	(815	)	$	42		$	41		$	26		$	20		$	129
Life Insurance		1			13			39			21			74			56			54			27			36			173
Fixed Annuities		23			26			24			27			100			21			16			26			29			92

Total U.S. Life Insurance segment		(482	)		(322	)		69			94			(641	)		119			111			79			85			394

Total U.S. Life Insurance Division		(482	)		(322	)		69			94			(641	)		119			111			79			85			394

Global Mortgage Insurance Division
International Mortgage Insurance segment:
Canada		36			46			47			41			170			44			41			43			42			170
Australia⁽¹⁾		33			48			57			62			200			66			61			55			46			228
Other Countries		(7	)		(7	)		(7	)		(4	)		(25	)		(9	)		(12	)		(9	)		(7	)		(37	)

Total International Mortgage Insurance segment		62			87			97			99			345			101			90			89			81			361
U.S. Mortgage Insurance segment		21			(2	)		39			33			91			6			(3	)		13			21			37

Total Global Mortgage Insurance Division		83			85			136			132			436			107			87			102			102			398

Corporate and Other Division
International Protection segment		(4	)		3			2			7			8			13			4			1			6			24
Runoff segment		16			5			15			12			48			19			25			6			16			66
Corporate and Other		(29	)		(88	)		(64	)		(51	)		(232	)		(65	)		(88	)		(55	)		(58	)		(266	)

Total Corporate and Other Division		(17	)		(80	)		(47	)		(32	)		(176	)		(33	)		(59	)		(48	)		(36	)		(176	)

NET OPERATING INCOME (LOSS)		(416	)		(317	)		158			194			(381	)		193			139			133			151			616
ADJUSTMENTS TO NET OPERATING INCOME (LOSS):
Net investment gains (losses), net		(4	)		(10	)		20			(10	)		(4	)		15			(13	)		15			(28	)		(11	)
Goodwill impairment, net		(274	)		(517	)		—			—			(791	)		—			—			—			—			—
Gains (losses) on early extinguishment of debt, net		—			—			(2	)		—			(2	)		—			(20	)		—			—			(20	)
Tax impact from potential business portfolio changes		(66	)		—			—			—			(66	)		—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			—			(13	)		—			(13	)
Income (loss) from discontinued operations, net of taxes		—			—			—			—			—			—			2			6			(20	)		(12	)

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(760	)		(844	)		176			184			(1,244	)		208			108			141			103			560
Add: net income attributable to noncontrolling interests		52			57			52			35			196			37			40			39			38			154

NET INCOME (LOSS)	$	(708	)	$	(787	)	$	228		$	219		$	(1,048	)	$	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	$	(1.53	)	$	(1.70	)	$	0.35		$	0.37		$	(2.51	)	$	0.42		$	0.22		$	0.29		$	0.21		$	1.13
Diluted	$	(1.53	)	$	(1.70	)	$	0.35		$	0.37		$	(2.51	)	$	0.41		$	0.22		$	0.28		$	0.21		$	1.12
Net operating income (loss) per common share
Basic	$	(0.84	)	$	(0.64	)	$	0.32		$	0.39		$	(0.77	)	$	0.39		$	0.28		$	0.27		$	0.31		$	1.25
Diluted	$	(0.84	)	$	(0.64	)	$	0.31		$	0.39		$	(0.77	)	$	0.38		$	0.28		$	0.27		$	0.30		$	1.24
Weighted-average common shares outstanding
Basic		496.7			496.6			496.6			495.8			496.4			494.7			494.0			493.4			492.5			493.6
Diluted⁽²⁾		496.7			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 December 31,				Twelve months ended December 31,
	2014		2013		2014		2013
Australia’s Net Operating Income	$	54	$	66	$	255	$	228
Less: Net Operating Income Attributable to Noncontrolling Interests		21		—		55		—

Australia’s Net Operating Income Available to Genworth Financial, Inc.’s Common Stockholders	$	33	$	66	$	200	$	228

⁽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 and the three and twelve months ended December 31, 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 and the three and twelve months ended December 31, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 5.4 million, 3.2 million and 5.6 million, respectively, would have been antidilutive to the calculation. If the company had not incurred a net loss and net operating loss for the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, dilutive potential weighted-average common shares outstanding would have been 502.0 million, 499.9 million and 502.0 million, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Consolidated Balance Sheets

(amounts in millions)


	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	62,447	$	62,317	$	62,360	$	60,244	$	58,629
Equity securities available-for-sale, at fair value		282		313		320		349		341
Commercial mortgage loans		6,100		6,077		5,986		5,894		5,899
Restricted commercial mortgage loans related to securitization entities		201		209		217		227		233
Policy loans		1,501		1,512		1,514		1,438		1,434
Other invested assets		2,296		2,281		1,963		1,875		1,686
Restricted other invested assets related to securitization entities		411		404		404		398		391

Total investments		73,238		73,113		72,764		70,425		68,613
Cash and cash equivalents		4,918		3,477		4,138		4,360		4,214
Accrued investment income		685		719		642		752		678
Deferred acquisition costs		5,042		5,085		5,085		5,177		5,278
Intangible assets		272		300		266		327		399
Goodwill		16		316		867		866		867
Reinsurance recoverable		17,346		17,374		17,276		17,234		17,219
Other assets		633		710		695		691		639
Separate account assets		9,208		9,420		9,911		9,933		10,138

Total assets	$	111,358	$	110,514	$	111,644	$	109,765	$	108,045

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Consolidated Balance Sheets

(amounts in millions)


	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	35,915		$	34,697		$	34,497		$	34,076		$	33,705
Policyholder account balances		26,043			25,827			25,834			25,881			25,528
Liability for policy and contract claims		8,043			7,987			7,223			7,156			7,204
Unearned premiums		3,986			4,085			4,191			4,075			4,107
Other liabilities		3,604			3,605			3,702			3,777			4,096
Borrowings related to securitization entities		219			225			233			239			242
Non-recourse funding obligations		1,996			2,010			2,024			2,030			2,038
Long-term borrowings		4,639			4,662			4,691			5,150			5,161
Deferred tax liability		908			875			1,074			714			206
Separate account liabilities		9,208			9,420			9,911			9,933			10,138

Total liabilities		94,561			93,393			93,380			93,031			92,425

Stockholders’ equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,997			11,991			11,986			12,124			12,127

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		2,431			2,047			2,109			1,606			914
Net unrealized gains (losses) on other-than-temporarily impaired securities		22			20			19			18			12

Net unrealized investment gains (losses)		2,453			2,067			2,128			1,624			926

Derivatives qualifying as hedges		2,070			1,753			1,652			1,538			1,319
Foreign currency translation and other adjustments		(77	)		114			381			321			297

Total accumulated other comprehensive income		4,446			3,934			4,161			3,483			2,542
Retained earnings		1,179			1,939			2,783			2,607			2,423
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		14,923			15,165			16,231			15,515			14,393
Noncontrolling interests		1,874			1,956			2,033			1,219			1,227

Total stockholders’ equity		16,797			17,121			18,264			16,734			15,620

Total liabilities and stockholders’ equity	$	111,358		$	110,514		$	111,644		$	109,765		$	108,045

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Consolidated Balance Sheet by Segment

(amounts in millions)


	December 31, 2014
	U.S. Life Insurance		International Mortgage Insurance		U.S. Mortgage Insurance			International Protection		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	61,555	$	8,540	$	2,240		$	1,455	$	2,602		$	2,449		$	78,841
Deferred acquisition costs and intangible assets		4,589		179		24			215		311			12			5,330
Reinsurance recoverable		16,408		23		27			32		856			—			17,346
Deferred tax and other assets		354		73		33			131		(6	)		48			633
Separate account assets		—		—		—			—		9,208			—			9,208

Total assets	$	82,906	$	8,815	$	2,324		$	1,833	$	12,971		$	2,509		$	111,358

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Future policy benefits	$	35,911	$	—	$	—		$	—	$	4		$	—		$	35,915
Policyholder account balances		22,874		—		—			11		3,158			—			26,043
Liability for policy and contract claims		6,434		308		1,180			106		15			—			8,043
Unearned premiums		639		2,723		178			439		7			—			3,986
Non-recourse funding obligations		2,026		—		—			—		—			(30	)		1,996
Deferred tax and other liabilities		4,047		375		(719	)		460		(208	)		557			4,512
Borrowings and capital securities		—		488		—			—		13			4,357			4,858
Separate account liabilities		—		—		—			—		9,208			—			9,208

Total liabilities		71,931		3,894		639			1,016		12,197			4,884			94,561

Stockholders’ equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		6,668		2,888		1,666			815		793			(2,353	)		10,477
Allocated accumulated other comprehensive income (loss)		4,307		159		19			2		(19	)		(22	)		4,446

Total Genworth Financial, Inc.’s stockholders’ equity		10,975		3,047		1,685			817		774			(2,375	)		14,923
Noncontrolling interests		—		1,874		—			—		—			—			1,874

Total stockholders’ equity		10,975		4,921		1,685			817		774			(2,375	)		16,797

Total liabilities and stockholders’ equity	$	82,906	$	8,815	$	2,324		$	1,833	$	12,971		$	2,509		$	111,358

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH 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

FOURTH 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 September 30, 2014	$	4,726		$	153		$	15		$	215		$	312		$	—	$	5,421
Costs deferred		83			16			2			16			—			—		117
Amortization, net of interest accretion		(77	)		(11	)		(1	)		(26	)		(13	)		—		(128	)
Impact of foreign currency translation		—			(8	)		—			(12	)		—			—		(20	)

Unamortized balance as of December 31, 2014		4,732			150			16			193			299			—		5,390
Effect of accumulated net unrealized investment (gains) losses		(342	)		—			—			—			(6	)		—		(348	)

Balance as of December 31, 2014	$	4,390		$	150		$	16		$	193		$	293		$	—	$	5,042

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

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

U.S. Life Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	827		$	821		$	762		$	759		$	3,169		$	761		$	751		$	738		$	707		$	2,957
Net investment income		676			658			671			660			2,665			675			650			658			638			2,621
Net investment gains (losses)		12			1			25			3			41			(2	)		(6	)		17			(12	)		(3	)
Insurance and investment product fees and other		180			186			175			171			712			185			192			190			188			755

Total revenues		1,695			1,666			1,633			1,593			6,587			1,619			1,587			1,603			1,521			6,330

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,981			1,722			1,087			1,030			5,820			1,036			924			1,041			974			3,975
Interest credited		154			155			155			154			618			156			156			155			152			619
Acquisition and operating expenses, net of deferrals		168			173			156			161			658			164			154			177			163			658
Amortization of deferred acquisition costs and intangibles		98			91			81			75			345			78			139			80			87			384
Goodwill impairment		299			550			—			—			849			—			—			—			—			—
Interest expense		23			22			21			21			87			25			25			24			23			97

Total benefits and expenses		2,723			2,713			1,500			1,441			8,377			1,459			1,398			1,477			1,399			5,733

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(1,028	)		(1,047	)		133			152			(1,790	)		160			189			126			122			597
Provision (benefit) for income taxes		(278	)		(211	)		47			57			(385	)		40			82			46			45			213

INCOME (LOSS) FROM CONTINUING OPERATIONS		(750	)		(836	)		86			95			(1,405	)		120			107			80			77			384

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(6	)		(3	)		(17	)		(1	)		(27	)		(1	)		4			(10	)		8			1
Goodwill impairment, net		274			517			—			—			791			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			—			9			—			9

NET OPERATING INCOME (LOSS)	$	(482	)	$	(322	)	$	69		$	94		$	(641	)	$	119		$	111		$	79		$	85		$	394


Effective tax rate (operating income (loss))⁽¹⁾		34.7	%		35.8	%		35.6	%		37.3	%		34.7	%		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

FOURTH QUARTER 2014

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

(amounts in millions)


	U.S. Life Insurance Segment
Three months ended December 31, 2014	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	607		$	175		$	45		$	827		$	827
Net investment income		303			133			240			676			676
Net investment gains (losses)		6			—			6			12			12
Insurance and investment product fees and other		—			179			1			180			180

Total revenues		916			487			292			1,695			1,695

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,545			315			121			1,981			1,981
Interest credited		—			67			87			154			154
Acquisition and operating expenses, net of deferrals		106			45			17			168			168
Amortization of deferred acquisition costs and intangibles		34			36			28			98			98
Goodwill impairment		154			145			—			299			299
Interest expense		—			23			—			23			23

Total benefits and expenses		1,839			631			253			2,723			2,723

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(923	)		(144	)		39			(1,028	)		(1,028	)
Provision (benefit) for income taxes		(291	)		—			13			(278	)		(278	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(632	)		(144	)		26			(750	)		(750	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(3	)		—			(3	)		(6	)		(6	)
Goodwill impairment, net		129			145			—			274			274

NET OPERATING INCOME (LOSS)	$	(506	)	$	1		$	23		$	(482	)	$	(482	)



Effective tax rate (operating income (loss))		34.6	%		NM	⁽¹⁾		33.3	%		34.7	%		34.7	%


	U.S. Life Insurance Segment
Three months ended December 31, 2013	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	582		$	164		$	15		$	761		$	761
Net investment income		291			139			245			675			675
Net investment gains (losses)		(4	)		8			(6	)		(2	)		(2	)
Insurance and investment product fees and other		—			183			2			185			185

Total revenues		869			494			256			1,619			1,619

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		701			241			94			1,036			1,036
Interest credited		—			66			90			156			156
Acquisition and operating expenses, net of deferrals		94			47			23			164			164
Amortization of deferred acquisition costs and intangibles		27			31			20			78			78
Interest expense		—			25			—			25			25

Total benefits and expenses		822			410			227			1,459			1,459

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		47			84			29			160			160
Provision for income taxes		8			22			10			40			40

INCOME FROM CONTINUING OPERATIONS		39			62			19			120			120
ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		3			(6	)		2			(1	)		(1	)

NET OPERATING INCOME	$	42		$	56		$	21		$	119		$	119



Effective tax rate (operating income)		19.8	%		25.6	%		33.6	%		25.3	%		25.3	%

⁽¹⁾	“NM” is defined as not meaningful for percentages greater than 200%.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	U.S. Life Insurance Segment
Twelve months ended December 31, 2014	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	2,336		$	722		$	111		$	3,169		$	3,169
Net investment income		1,178			521			966			2,665			2,665
Net investment gains (losses)		8			34			(1	)		41			41
Insurance and investment product fees and other		1			704			7			712			712

Total revenues		3,523			1,981			1,083			6,587			6,587

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		4,257			1,146			417			5,820			5,820
Interest credited		—			266			352			618			618
Acquisition and operating expenses, net of deferrals		399			192			67			658			658
Amortization of deferred acquisition costs and intangibles		112			140			93			345			345
Goodwill impairment		354			495			—			849			849
Interest expense		—			87			—			87			87

Total benefits and expenses		5,122			2,326			929			8,377			8,377

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(1,599	)		(345	)		154			(1,790	)		(1,790	)
Provision (benefit) for income taxes		(493	)		54			54			(385	)		(385	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(1,106	)		(399	)		100			(1,405	)		(1,405	)
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(5	)		(22	)		—			(27	)		(27	)
Goodwill impairment, net		296			495			—			791			791

NET OPERATING INCOME (LOSS)	$	(815	)	$	74		$	100		$	(641	)	$	(641	)



Effective tax rate (operating income (loss))		34.9	%		36.2	%		35.0	%		34.7	%		34.7	%


	U.S. Life Insurance Segment
Twelve months ended December 31, 2013	Long-Term Care Insurance			Life Insurance			Fixed Annuities			Total U.S. Life Insurance Segment			Total
REVENUES:
Premiums	$	2,209		$	684		$	64		$	2,957		$	2,957
Net investment income		1,114			541			966			2,621			2,621
Net investment gains (losses)		(11	)		13			(5	)		(3	)		(3	)
Insurance and investment product fees and other		4			744			7			755			755

Total revenues		3,316			1,982			1,032			6,330			6,330

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		2,651			945			379			3,975			3,975
Interest credited		—			266			353			619			619
Acquisition and operating expenses, net of deferrals		385			194			79			658			658
Amortization of deferred acquisition costs and intangibles		107			192			85			384			384
Interest expense		—			97			—			97			97

Total benefits and expenses		3,143			1,694			896			5,733			5,733

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		173			288			136			597			597
Provision for income taxes		57			108			48			213			213

INCOME FROM CONTINUING OPERATIONS		116			180			88			384			384
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		7			(9	)		3			1			1
Expenses related to restructuring, net		6			2			1			9			9

NET OPERATING INCOME	$	129		$	173		$	92		$	394		$	394



Effective tax rate (operating income)		33.3	%		37.6	%		35.3	%		35.7	%		35.7	%

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	607		$	587		$	577		$	565		$	2,336		$	582		$	564		$	550		$	513		$	2,209
Net investment income		303			293			292			290			1,178			291			282			277			264			1,114
Net investment gains (losses)		6			(1	)		3			—			8			(4	)		(2	)		(2	)		(3	)		(11	)
Insurance and investment product fees and other		—			—			—			1			1			—			2			1			1			4

Total revenues		916			879			872			856			3,523			869			846			826			775			3,316

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,545			1,313			735			664			4,257			701			659			663			628			2,651
Interest credited		—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		106			103			97			93			399			94			90			107			94			385
Amortization of deferred acquisition costs and intangibles		34			25			27			26			112			27			31			24			25			107
Goodwill impairment		154			200			—			—			354			—			—			—			—			—
Interest expense		—			—			—			—			—			—			—			—			—			—

Total benefits and expenses		1,839			1,641			859			783			5,122			822			780			794			747			3,143

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(923	)		(762	)		13			73			(1,599	)		47			66			32			28			173
Provision (benefit) for income taxes		(291	)		(234	)		5			27			(493	)		8			26			13			10			57

INCOME (LOSS) FROM CONTINUING OPERATIONS		(632	)		(528	)		8			46			(1,106	)		39			40			19			18			116

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(3	)		—			(2	)		—			(5	)		3			1			1			2			7
Goodwill impairment, net		129			167			—			—			296			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			—			6			—			6

NET OPERATING INCOME (LOSS)	$	(506	)	$	(361	)	$	6		$	46		$	(815	)	$	42		$	41		$	26		$	20		$	129


Effective tax rate (operating income (loss))		34.6	%		35.7	%		37.1	%		37.0	%		34.9	%		19.8	%		38.6	%		40.2	%		35.4	%		33.3	%

SALES:
Individual Long-Term Care Insurance	$	17		$	28		$	24		$	21		$	90		$	24		$	37		$	38		$	35		$	134
Group Long-Term Care Insurance		6			1			2			1			10			2			3			5			5			15

Total Sales	$	23		$	29		$	26		$	22		$	100		$	26		$	40		$	43		$	40		$	149


RATIOS:
Loss Ratio⁽¹⁾		200.1	%		173.0	%		73.2	%		63.3	%		128.8	%		68.2	%		63.7	%		66.6	%		66.2	%		66.2	%
Gross Benefits Ratio⁽²⁾		254.4	%		224.1	%		127.3	%		117.5	%		182.2	%		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

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	175		$	193		$	171		$	183		$	722		$	164		$	166		$	173		$	181		$	684
Net investment income		133			123			137			128			521			139			138			133			131			541
Net investment gains (losses)		—			10			23			1			34			8			—			9			(4	)		13
Insurance and investment product fees and other		179			184			173			168			704			183			188			187			186			744

Total revenues		487			510			504			480			1,981			494			492			502			494			1,982

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		315			293			257			281			1,146			241			160			280			264			945
Interest credited		67			67			66			66			266			66			68			68			64			266
Acquisition and operating expenses, net of deferrals		45			52			45			50			192			47			47			50			50			194
Amortization of deferred acquisition costs and intangibles		36			46			32			26			140			31			88			33			40			192
Goodwill impairment		145			350			—			—			495			—			—			—			—			—
Interest expense		23			22			21			21			87			25			25			24			23			97

Total benefits and expenses		631			830			421			444			2,326			410			388			455			441			1,694

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(144	)		(320	)		83			36			(345	)		84			104			47			53			288
Provision for income taxes		—			11			29			14			54			22			50			16			20			108

INCOME (LOSS) FROM CONTINUING OPERATIONS		(144	)		(331	)		54			22			(399	)		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		145			350			—			—			495			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			—			2			—			2

NET OPERATING INCOME	$	1		$	13		$	39		$	21		$	74		$	56		$	54		$	27		$	36		$	173


Effective tax rate (operating income)		NM	⁽¹⁾		35.2	%		35.4	%		39.3	%		36.2	%		25.6	%		47.5	%		34.4	%		37.6	%		37.6	%

SALES:

Sales by Product:
Term Life	$	11		$	13		$	14		$	13		$	51		$	9		$	5		$	4		$	4		$	22
Term Universal Life		—			—			—			—			—			—			—			—			1			1
Universal Life		7			11			7			6			31			5			5			5			9			24
Linked-Benefits		5			4			5			2			16			3			2			3			2			10

Total Sales	$	23		$	28		$	26		$	21		$	98		$	17		$	12		$	12		$	16		$	57

⁽¹⁾	“NM” is defined as not meaningful for percentages greater than 200%.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Life Insurance In-Force

(amounts in millions)


	2014								2013
	4Q		3Q		2Q		1Q		4Q		3Q		2Q		1Q
Term and Whole Life Insurance
Life insurance in-force, net of reinsurance	$	353,631	$	350,946	$	341,383	$	338,372	$	336,015	$	335,039	$	336,008	$	338,014
Life insurance in-force before reinsurance	$	522,761	$	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	$	128,289	$	129,268	$	130,270	$	131,256	$	132,293	$	133,500	$	134,868	$	136,222
Life insurance in-force before reinsurance	$	129,296	$	130,285	$	131,296	$	132,294	$	133,348	$	134,555	$	135,937	$	137,297

Universal Life Insurance
Life insurance in-force, net of reinsurance	$	41,959	$	42,119	$	42,454	$	42,814	$	43,150	$	43,447	$	43,773	$	44,051
Life insurance in-force before reinsurance	$	48,570	$	48,821	$	49,004	$	49,418	$	49,790	$	50,203	$	50,558	$	50,906

Total Life Insurance
Life insurance in-force, net of reinsurance	$	523,879	$	522,333	$	514,107	$	512,442	$	511,458	$	511,986	$	514,649	$	518,287
Life insurance in-force before reinsurance	$	700,627	$	702,890	$	705,043	$	705,637	$	706,832	$	709,929	$	715,369	$	722,397

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	45		$	41		$	14		$	11		$	111		$	15		$	21		$	15		$	13		$	64
Net investment income		240			242			242			242			966			245			230			248			243			966
Net investment gains (losses)		6			(8	)		(1	)		2			(1	)		(6	)		(4	)		10			(5	)		(5	)
Insurance and investment product fees and other		1			2			2			2			7			2			2			2			1			7

Total revenues		292			277			257			257			1,083			256			249			275			252			1,032

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		121			116			95			85			417			94			105			98			82			379
Interest credited		87			88			89			88			352			90			88			87			88			353
Acquisition and operating expenses, net of deferrals		17			18			14			18			67			23			17			20			19			79
Amortization of deferred acquisition costs and intangibles		28			20			22			23			93			20			20			23			22			85
Interest expense		—			—			—			—			—			—			—			—			—			—

Total benefits and expenses		253			242			220			214			929			227			230			228			211			896

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		39			35			37			43			154			29			19			47			41			136
Provision for income taxes		13			12			13			16			54			10			6			17			15			48

INCOME FROM CONTINUING OPERATIONS		26			23			24			27			100			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	$	23		$	26		$	24		$	27		$	100		$	21		$	16		$	26		$	29		$	92


Effective tax rate (operating income)		33.3	%		34.8	%		35.5	%		36.2	%		35.0	%		33.6	%		35.4	%		36.3	%		35.5	%		35.3	%

SALES:
Sales by Product:
Single Premium Deferred Annuities	$	439		$	322		$	400		$	492		$	1,653		$	678		$	707		$	164		$	67		$	1,616
Single Premium Immediate Annuities		56			49			29			28			162			52			53			48			40			193

Total Sales	$	495		$	371		$	429		$	520		$	1,815		$	730		$	760		$	212		$	107		$	1,809

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Single Premium Deferred Annuities
Account value, beginning of the period	$	12,292		$	12,233		$	12,070		$	11,807		$	11,807		$	11,341		$	10,842		$	10,881		$	11,038		$	11,038
Deposits		475			324			404			496			1,699			686			714			166			68			1,634
Surrenders, benefits and product charges		(407	)		(344	)		(320	)		(312	)		(1,383	)		(300	)		(293	)		(281	)		(302	)		(1,176	)

Net flows		68			(20	)		84			184			316			386			421			(115	)		(234	)		458
Interest credited		77			79			79			79			314			80			78			76			77			311

Account value, end of the period		12,437			12,292			12,233			12,070			12,437			11,807			11,341			10,842			10,881			11,807


Single Premium Immediate Annuities
Account value, beginning of the period		5,782			5,891			5,875			5,837			5,837			5,931			6,010			6,319			6,442			6,442
Premiums and deposits		83			83			59			49			274			91			80			71			65			307
Surrenders, benefits and product charges		(215	)		(209	)		(213	)		(215	)		(852	)		(221	)		(214	)		(228	)		(235	)		(898	)

Net flows		(132	)		(126	)		(154	)		(166	)		(578	)		(130	)		(134	)		(157	)		(170	)		(591	)
Interest credited		65			66			67			68			266			69			71			72			73			285
Effect of accumulated net unrealized investment gains (losses)		48			(49	)		103			136			238			(33	)		(16	)		(224	)		(26	)		(299	)

Account value, end of the period		5,763			5,782			5,891			5,875			5,763			5,837			5,931			6,010			6,319			5,837


Structured Settlements
Account value, net of reinsurance, beginning of the period		1,082			1,085			1,092			1,093			1,093			1,095			1,097			1,101			1,101			1,101
Surrenders, benefits and product charges		(18	)		(18	)		(21	)		(15	)		(72	)		(16	)		(17	)		(18	)		(15	)		(66	)

Net flows		(18	)		(18	)		(21	)		(15	)		(72	)		(16	)		(17	)		(18	)		(15	)		(66	)
Interest credited		14			15			14			14			57			14			15			14			15			58

Account value, net of reinsurance, end of the period		1,078			1,082			1,085			1,092			1,078			1,093			1,095			1,097			1,101			1,093

Total Fixed Annuities	$	19,278		$	19,156		$	19,209		$	19,037		$	19,278		$	18,737		$	18,367		$	17,949		$	18,301		$	18,737

Global Mortgage Insurance Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Income—Global Mortgage Insurance Division

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	387		$	388		$	381		$	372		$	1,528		$	390		$	380		$	392		$	388		$	1,550
Net investment income		87			97			86			92			362			93			98			95			107			393
Net investment gains (losses)		(4	)		(4	)		12			(3	)		1			9			7			13			3			32
Insurance and investment product fees and other		(4	)		(7	)		(3	)		2			(12	)		1			—			—			1			2

Total revenues		466			474			476			463			1,879			493			485			500			499			1,977

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		145			199			107			110			561			172			196			177			184			729
Acquisition and operating expenses, net of deferrals		101			87			93			82			363			107			91			96			91			385
Amortization of deferred acquisition costs and intangibles		16			16			17			17			66			15			15			19			17			66
Interest expense		7			8			8			8			31			7			9			8			9			33

Total benefits and expenses		269			310			225			217			1,021			301			311			300			301			1,213

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		197			164			251			246			858			192			174			200			198			764
Provision for income taxes		237			24			61			80			402			44			45			55			57			201

INCOME (LOSS) FROM CONTINUING OPERATIONS		(40	)		140			190			166			456			148			129			145			141			563
Less: net income attributable to noncontrolling interests		52			57			52			35			196			37			40			39			38			154

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(92	)		83			138			131			260			111			89			106			103			409

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		1			2			(4	)		1			—			(4	)		(2	)		(5	)		(1	)		(12	)
(Gains) losses on early extinguishment of debt, net		—			—			2			—			2			—			—			—			—			—
Tax impact from potential business portfolio changes		174			—			—			—			174			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			—			1			—			1

NET OPERATING INCOME⁽¹⁾	$	83		$	85		$	136		$	132		$	436		$	107		$	87		$	102		$	102		$	398


Effective tax rate (operating income)		34.0	%		11.3	%		23.3	%		33.9	%		27.2	%		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 $88 million and $469 million for the three and twelve months ended December 31, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Three months ended December 31, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	127		$	102		$	7		$	236		$	151		$	387
Net investment income		38			36			2			76			11			87
Net investment gains (losses)		(7	)		3			—			(4	)		—			(4	)
Insurance and investment product fees and other		—			(5	)		—			(5	)		1			(4	)

Total revenues		158			136			9			303			163			466

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		33			15			6			54			91			145
Acquisition and operating expenses, net of deferrals		23			30			10			63			38			101
Amortization of deferred acquisition costs and intangibles		9			5			—			14			2			16
Interest expense		5			2			—			7			—			7

Total benefits and expenses		70			52			16			138			131			269

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		88			84			(7	)		165			32			197
Provision for income taxes		24			202			—			226			11			237

INCOME (LOSS) FROM CONTINUING OPERATIONS		64			(118	)		(7	)		(61	)		21			(40	)
Less: net income attributable to noncontrolling interests		30			22			—			52			—			52

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		34			(140	)		(7	)		(113	)		21			(92	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		2			(1	)		—			1			—			1
Tax impact from potential business portfolio changes		—			174			—			174			—			174

NET OPERATING INCOME (LOSS)	$	36		$	33		$	(7	)	$	62		$	21		$	83


Effective tax rate (operating income (loss))		29.4	%		34.8	%		-4.2	%		34.5	%		32.5	%		34.0	%

	International Mortgage Insurance Segment
Three months ended December 31, 2013	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	137		$	98		$	13		$	248		$	142		$	390
Net investment income		41			38			1			80			13			93
Net investment gains (losses)		6			—			3			9			—			9
Insurance and investment product fees and other		—			1			—			1			—			1

Total revenues		184			137			17			338			155			493

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		30			21			13			64			108			172
Acquisition and operating expenses, net of deferrals		29			34			9			72			35			107
Amortization of deferred acquisition costs and intangibles		8			5			1			14			1			15
Interest expense		5			2			—			7			—			7

Total benefits and expenses		72			62			23			157			144			301

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		112			75			(6	)		181			11			192
Provision for income taxes		28			9			2			39			5			44

INCOME (LOSS) FROM CONTINUING OPERATIONS		84			66			(8	)		142			6			148
Less: net income attributable to noncontrolling interests		37			—			—			37			—			37

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		47			66			(8	)		105			6			111

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(3	)		—			(1	)		(4	)		—			(4	)

NET OPERATING INCOME (LOSS)	$	44		$	66		$	(9	)	$	101		$	6		$	107


Effective tax rate (operating income (loss))		22.9	%		12.0	%		-15.3	%		18.8	%		45.0	%		20.7	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Income (Loss)—Global Mortgage Insurance Division

(amounts in millions)


	International Mortgage Insurance Segment
Twelve months ended December 31, 2014	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	515		$	406		$	29		$	950		$	578		$	1,528
Net investment income		155			144			4			303			59			362
Net investment gains (losses)		(2	)		3			—			1			—			1
Insurance and investment product fees and other		1			(16	)		1			(14	)		2			(12	)

Total revenues		669			537			34			1,240			639			1,879

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		102			78			24			204			357			561
Acquisition and operating expenses, net of deferrals		90			97			36			223			140			363
Amortization of deferred acquisition costs and intangibles		38			21			—			59			7			66
Interest expense		21			10			—			31			—			31

Total benefits and expenses		251			206			60			517			504			1,021

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		418			331			(26	)		723			135			858
Provision (benefit) for income taxes		111			248			(1	)		358			44			402

INCOME (LOSS) FROM CONTINUING OPERATIONS		307			83			(25	)		365			91			456
Less: net income attributable to noncontrolling interests		140			56			—			196			—			196

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		167			27			(25	)		169			91			260

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		1			(1	)		—			—			—			—
(Gains) losses on early extinguishment of debt, net		2			—			—			2			—			2
Tax impact from potential business portfolio changes		—			174			—			174			—			174

NET OPERATING INCOME (LOSS)	$	170		$	200		$	(25	)	$	345		$	91		$	436


Effective tax rate (operating income (loss))		27.1	%		22.3	%		3.8	%		25.7	%		32.2	%		27.2	%

	International Mortgage Insurance Segment
Twelve months ended December 31, 2013	Canada			Australia			Other Countries			Total International Mortgage Insurance Segment			U.S. Mortgage Insurance Segment			Total
REVENUES:
Premiums	$	560		$	398		$	38		$	996		$	554		$	1,550
Net investment income		170			159			4			333			60			393
Net investment gains (losses)		31			(2	)		3			32			—			32
Insurance and investment product fees and other		(1	)		—			1			—			2			2

Total revenues		760			555			46			1,361			616			1,977

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		139			134			44			317			412			729
Acquisition and operating expenses, net of deferrals		93			110			38			241			144			385
Amortization of deferred acquisition costs and intangibles		37			22			1			60			6			66
Interest expense		22			11			—			33			—			33

Total benefits and expenses		291			277			83			651			562			1,213

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		469			278			(37	)		710			54			764
Provision for income taxes		133			51			—			184			17			201

INCOME (LOSS) FROM CONTINUING OPERATIONS		336			227			(37	)		526			37			563
Less: net income attributable to noncontrolling interests		154			—			—			154			—			154

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		182			227			(37	)		372			37			409

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(12	)		1			(1	)		(12	)		—			(12	)
Expenses related to restructuring, net		—			—			1			1			—			1

NET OPERATING INCOME (LOSS)	$	170		$	228		$	(37	)	$	361		$	37		$	398


Effective tax rate (operating income (loss))		29.5	%		18.6	%		3.1	%		25.3	%		31.6	%		25.9	%

International Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Income—International Mortgage Insurance Segment

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	236		$	242		$	237		$	235		$	950		$	248		$	243		$	251		$	254		$	996
Net investment income		76			78			75			74			303			80			80			85			88			333
Net investment gains (losses)		(4	)		(4	)		12			(3	)		1			9			7			13			3			32
Insurance and investment product fees and other		(5	)		(7	)		(4	)		2			(14	)		1			(1	)		—			—			—

Total revenues		303			309			320			308			1,240			338			329			349			345			1,361

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		54			58			45			47			204			64			73			80			100			317
Acquisition and operating expenses, net of deferrals		63			52			59			49			223			72			56			61			52			241
Amortization of deferred acquisition costs and intangibles		14			15			15			15			59			14			13			17			16			60
Interest expense		7			8			8			8			31			7			9			8			9			33

Total benefits and expenses		138			133			127			119			517			157			151			166			177			651

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		165			176			193			189			723			181			178			183			168			710
Provision for income taxes		226			34			42			56			358			39			46			51			48			184

INCOME (LOSS) FROM CONTINUING OPERATIONS		(61	)		142			151			133			365			142			132			132			120			526
Less: net income attributable to noncontrolling interests		52			57			52			35			196			37			40			39			38			154

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(113	)		85			99			98			169			105			92			93			82			372

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		1			2			(4	)		1			—			(4	)		(2	)		(5	)		(1	)		(12	)
(Gains) losses on early extinguishment of debt, net		—			—			2			—			2			—			—			—			—			—
Tax impact from potential business portfolio changes		174			—			—			—			174			—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			—			1			—			1

NET OPERATING INCOME⁽¹⁾	$	62		$	87		$	97		$	99		$	345		$	101		$	90		$	89		$	81		$	361


Effective tax rate (operating income)		34.5	%		19.0	%		18.8	%		30.7	%		25.7	%		18.8	%		25.0	%		27.8	%		29.9	%		25.3	%

⁽¹⁾	Net operating income adjusted for foreign exchange as compared to the prior year period for the International Mortgage Insurance segment was $67 million and $378 million for the three and twelve months ended December 31, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	127		$	130		$	128		$	130		$	515		$	137		$	138		$	141		$	144		$	560
Net investment income		38			39			39			39			155			41			43			42			44			170
Net investment gains (losses)		(7	)		(4	)		12			(3	)		(2	)		6			9			12			4			31
Insurance and investment product fees and other		—			(2	)		1			2			1			—			—			(1	)		—			(1	)

Total revenues		158			163			180			168			669			184			190			194			192			760

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		33			28			15			26			102			30			30			35			44			139
Acquisition and operating expenses, net of deferrals		23			18			28			21			90			29			23			22			19			93
Amortization of deferred acquisition costs and intangibles		9			10			9			10			38			8			9			10			10			37
Interest expense		5			5			6			5			21			5			6			5			6			22

Total benefits and expenses		70			61			58			62			251			72			68			72			79			291

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		88			102			122			106			418			112			122			122			113			469
Provision for income taxes		24			24			32			31			111			28			38			35			32			133

INCOME FROM CONTINUING OPERATIONS		64			78			90			75			307			84			84			87			81			336
Less: net income attributable to noncontrolling interests		30			34			41			35			140			37			40			39			38			154

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		34			44			49			40			167			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			2			(4	)		1			1			(3	)		(3	)		(5	)		(1	)		(12	)
(Gains) losses on early extinguishment of debt, net		—			—			2			—			2			—			—			—			—			—

NET OPERATING INCOME⁽¹⁾	$	36		$	46		$	47		$	41		$	170		$	44		$	41		$	43		$	42		$	170


Effective tax rate (operating income)		29.4	%		21.2	%		26.3	%		31.6	%		27.1	%		22.9	%		35.0	%		29.3	%		30.2	%		29.5	%

SALES:
New Insurance Written (NIW)
Flow	$	5,500		$	6,800		$	5,000		$	2,900		$	20,200		$	5,000		$	6,000		$	4,700		$	3,300		$	19,000
Bulk		2,300			5,600			7,500			2,900			18,300			2,400			3,900			6,400			2,400			15,100

Total Canada NIW⁽²⁾	$	7,800		$	12,400		$	12,500		$	5,800		$	38,500		$	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 $39 million and $183 million for the three and twelve months ended December 31, 2014, respectively.

⁽²⁾	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $8,300 million and $41,000 million for the three and twelve months ended December 31, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	102		$	105		$	102		$	97		$	406		$	98		$	98		$	101		$	101		$	398
Net investment income		36			38			36			34			144			38			36			42			43			159
Net investment gains (losses)		3			—			—			—			3			—			(2	)		1			(1	)		(2	)
Insurance and investment product fees and other		(5	)		(7	)		(4	)		—			(16	)		1			(1	)		—			—			—

Total revenues		136			136			134			131			537			137			131			144			143			555

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		15			22			24			17			78			21			29			36			48			134
Acquisition and operating expenses, net of deferrals		30			25			23			19			97			34			25			27			24			110
Amortization of deferred acquisition costs and intangibles		5			5			6			5			21			5			5			6			6			22
Interest expense		2			3			2			3			10			2			3			3			3			11

Total benefits and expenses		52			55			55			44			206			62			62			72			81			277

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		84			81			79			87			331			75			69			72			62			278
Provision for income taxes		202			10			11			25			248			9			9			17			16			51

INCOME (LOSS) FROM CONTINUING OPERATIONS		(118	)		71			68			62			83			66			60			55			46			227
Less: net income attributable to noncontrolling interests		22			23			11			—			56			—			—			—			—			—

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		(140	)		48			57			62			27			66			60			55			46			227

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		(1	)		—			—			—			(1	)		—			1			—			—			1
Tax impact from potential business portfolio changes		174			—			—			—			174			—			—			—			—			—

NET OPERATING INCOME⁽¹⁾	$	33		$	48		$	57		$	62		$	200		$	66		$	61		$	55		$	46		$	228


Effective tax rate (operating income)		34.8	%		14.2	%		10.4	%		29.0	%		22.3	%		12.0	%		13.7	%		23.5	%		26.7	%		18.6	%

SALES:
New Insurance Written (NIW)
Flow	$	8,000		$	8,100		$	7,900		$	7,800		$	31,800		$	9,000		$	8,000		$	8,700		$	7,900		$	33,600
Bulk		100			1,000			—			—			1,100			—			100			900			—			1,000

Total Australia NIW⁽²⁾	$	8,100		$	9,100		$	7,900		$	7,800		$	32,900		$	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 $35 million and $219 million for the three and twelve months ended December 31, 2014, respectively.

⁽²⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $8,600 million and $35,400 million for the three and twelve months ended December 31, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	7		$	7		$	7		$	8		$	29		$	13		$	7		$	9		$	9		$	38
Net investment income		2			1			—			1			4			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		9			10			6			9			34			17			8			11			10			46

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		6			8			6			4			24			13			14			9			8			44
Acquisition and operating expenses, net of deferrals		10			9			8			9			36			9			8			12			9			38
Amortization of deferred acquisition costs and intangibles		—			—			—			—			—			1			(1	)		1			—			1
Interest expense		—			—			—			—			—			—			—			—			—			—

Total benefits and expenses		16			17			14			13			60			23			21			22			17			83

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(7	)		(7	)		(8	)		(4	)		(26	)		(6	)		(13	)		(11	)		(7	)		(37	)
Provision (benefit) for income taxes		—			—			(1	)		—			(1	)		2			(1	)		(1	)		—			—

LOSS FROM CONTINUING OPERATIONS		(7	)		(7	)		(7	)		(4	)		(25	)		(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	)		(7	)		(4	)		(25	)		(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	)	$	(7	)	$	(4	)	$	(25	)	$	(9	)	$	(12	)	$	(9	)	$	(7	)	$	(37	)


Effective tax rate (operating loss)		-4.2	%		-2.2	%		11.3	%		10.3	%		3.8	%		-15.3	%		11.2	%		5.7	%		4.9	%		3.1	%

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

Total Other Countries NIW⁽²⁾	$	500		$	400		$	500		$	400		$	1,800		$	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 $(24) million for the three and twelve months ended December 31, 2014, respectively.

⁽²⁾	New insurance written for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $600 million and $1,800 million for the three and twelve months ended December 31, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written
Canada	$	160		$	200		$	146		$	77		$	583		$	125		$	156		$	134		$	84		$	499
Australia		128			130			125			126			509			147			123			132			117			519
Other Countries⁽¹⁾		6			6			1			6			19			6			6			7			5			24

Total Net Premiums Written	$	294		$	336		$	272		$	209		$	1,111		$	278		$	285		$	273		$	206		$	1,042

Loss Ratio⁽²⁾
Canada		26	%		21	%		12	%		20	%		20	%		22	%		22	%		25	%		31	%		25	%
Australia		15	%		21	%		23	%		17	%		19	%		21	%		31	%		35	%		47	%		34	%
Other Countries		84	%		105	%		90	%		55	%		83	%		102	%		170	%		110	%		90	%		115	%
Total Loss Ratio		23	%		24	%		19	%		20	%		21	%		25	%		31	%		32	%		39	%		32	%

GAAP Basis Expense Ratio⁽³⁾
Canada⁽⁴⁾		26	%		22	%		29	%		23	%		25	%		27	%		23	%		22	%		20	%		23	%
Australia		34	%		28	%		28	%		25	%		29	%		39	%		30	%		32	%		31	%		33	%
Other Countries⁽¹⁾		115	%		126	%		131	%		107	%		120	%		69	%		106	%		129	%		113	%		101	%
Total GAAP Basis Expense Ratio		32	%		28	%		32	%		27	%		30	%		34	%		29	%		30	%		27	%		30	%

Adjusted Expense Ratio⁽⁵⁾
Canada⁽⁶⁾		20	%		14	%		26	%		39	%		22	%		30	%		20	%		23	%		35	%		26	%
Australia		27	%		23	%		23	%		20	%		23	%		26	%		24	%		25	%		27	%		25	%
Other Countries⁽¹⁾		132	%		150	%		NM	⁽⁷⁾		142	%		186	%		146	%		136	%		177	%		174	%		158	%
Total Adjusted Expense Ratio		26	%		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 $296 million, $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 December 31, 2014, 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 GAAP basis expense ratio was 24% for both the three months ended June 30, 2014 and the twelve months ended December 31, 2014.

⁽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 twelve months ended December 31, 2014.

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


	2014								2013
	4Q		3Q		2Q		1Q		4Q		3Q		2Q		1Q
Primary Insurance In-Force
Canada⁽¹⁾	$	306,600	$	310,800	$	314,500	$	291,900	$	298,000	$	300,700	$	285,200	$	284,700
Australia		256,000		271,100		288,500		281,000		267,900		275,500		266,500		299,000
Other Countries		21,900		23,900		26,000		26,200		26,300		32,500		31,300		31,400

Total Primary Insurance In-Force	$	584,500	$	605,800	$	629,000	$	599,100	$	592,200	$	608,700	$	583,000	$	615,100

Primary Risk In-Force⁽²⁾
Canada
Flow	$	81,300	$	82,600	$	84,500	$	80,100	$	82,300	$	83,400	$	79,700	$	80,900
Bulk		26,000		26,200		25,600		22,100		22,000		21,900		20,100		18,800

Total Canada		107,300		108,800		110,100		102,200		104,300		105,300		99,800		99,700

Australia
Flow		83,400		88,100		93,800		91,100		86,700		88,800		85,700		96,100
Bulk		6,200		6,800		7,200		7,200		7,100		7,600		7,600		8,500

Total Australia		89,600		94,900		101,000		98,300		93,800		96,400		93,300		104,600

Other Countries
Flow^(3),(4)		2,200		3,000		3,200		3,300		3,200		4,000		3,900		3,900
Bulk		300		300		400		400		400		300		300		300

Total Other Countries		2,500		3,300		3,600		3,700		3,600		4,300		4,200		4,200

Total Primary Risk In-Force	$	199,400	$	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 $148.0 billion as of September 30, 2014, $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⁾

⁽⁴⁾	Beginning in the fourth quarter of 2014, risk in-force reflects a maximum risk exposure of approximately $60 million with one lender in Ireland as a result of a settlement completed during the fourth quarter of 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(dollar amounts in millions)


Primary Insurance	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Insured loans in-force⁽¹⁾		1,673,505			1,646,223			1,602,928			1,549,650			1,527,554
Insured delinquent loans		1,756			1,708			1,703			1,860			1,830
Insured delinquency rate⁽²⁾		0.10	%		0.10	%		0.11	%		0.12	%		0.12	%

Flow loans in-force⁽¹⁾		1,255,050			1,236,206			1,213,846			1,197,083			1,187,753
Flow delinquent loans		1,493			1,477			1,493			1,634			1,591
Flow delinquency rate⁽²⁾		0.12	%		0.12	%		0.12	%		0.14	%		0.13	%

Bulk loans in-force⁽¹⁾		418,455			410,017			389,082			352,567			339,801
Bulk delinquent loans		263			231			210			226			239
Bulk delinquency rate⁽²⁾		0.06	%		0.06	%		0.05	%		0.06	%		0.07	%

Loss Metrics	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Beginning Reserves	$	89		$	90		$	97		$	102		$	108
Paid claims⁽³⁾		(24	)		(24	)		(26	)		(27	)		(33	)
Increase in reserves		29			27			16			26			30
Impact of changes in foreign exchange rates		(3	)		(4	)		3			(4	)		(3	)

Ending Reserves	$	91		$	89		$	90		$	97		$	102


	December 31, 2014						September 30, 2014						December 31, 2013
Province and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
Ontario		46	%		0.05	%		46	%		0.06	%		46	%		0.08%
Alberta		17			0.10	%		17			0.09	%		17			0.14%
British Columbia		14			0.14	%		14			0.15	%		15			0.17%
Quebec		14			0.19	%		14			0.18	%		14			0.17%
Nova Scotia		2			0.23	%		2			0.21	%		2			0.19%
Saskatchewan		3			0.13	%		3			0.12	%		2			0.08%
Manitoba		2			0.07	%		2			0.04	%		2			0.09%
New Brunswick		1			0.20	%		1			0.22	%		1			0.24%
All Other		1			0.12	%		1			0.11	%		1			0.12%

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


By Policy Year
2006 and prior		31	%		0.03	%		31	%		0.03	%		35	%		0.04%
2007		9			0.16	%		9			0.17	%		10			0.23%
2008		7			0.21	%		7			0.21	%		8			0.27%
2009		5			0.22	%		5			0.23	%		5			0.25%
2010		8			0.23	%		8			0.25	%		9			0.25%
2011		7			0.25	%		8			0.25	%		8			0.24%
2012		10			0.19	%		11			0.16	%		13			0.10%
2013		11			0.09	%		11			0.06	%		12			0.03%
2014		12			0.02	%		10			0.01	%		—			— %

Total		100	%		0.10	%		100	%		0.10	%		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

FOURTH QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Canada

(Canadian dollar amounts in millions)


	2014														2013
	4Q			3Q			2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	26		$	25		$	28		$	28		$	107	$	32		$	32		$	39		$	51		$	154
Bulk		1			1			—			1			3		2			2			1			2			7

Total Paid Claims	$	27		$	26		$	28		$	29		$	110	$	34		$	34		$	40		$	53		$	161


Average Paid Claim (in thousands)	$	60.2		$	63.9		$	63.4		$	66.4				$	72.2		$	69.4		$	73.1		$	84.9

Average Reserve Per Delinquency (in thousands)	$	60.2		$	58.4		$	56.4		$	57.5				$	59.0		$	62.5		$	66.1		$	61.3

Loss Metrics

Beginning Reserves	$	100		$	96		$	107		$	108				$	111		$	118		$	120		$	129
Paid claims		(27	)		(26	)		(28	)		(29	)				(34	)		(34	)		(40	)		(53	)
Increase in reserves		33			30			17			28					31			27			38			44

Ending Reserves	$	106		$	100		$	96		$	107				$	108		$	111		$	118		$	120

Loan Amount⁽²⁾

Over $550K		6	%		6	%		5	%		5	%				5	%		5	%		5	%		5	%
$400K to $550K		11			11			11			11					10			10			10			10
$250K to $400K		33			32			32			32					32			32			32			31
$100K to $250K		45			46			47			47					48			48			48			49
$100K or Less		5			5			5			5					5			5			5			5

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


Average Primary Loan Size (in thousands)	$	213		$	212		$	209		$	208				$	207		$	206		$	205		$	203

Average Effective Loan-To-Value Ratios By Policy Year⁽³⁾

2006 and prior		36	%		38	%		39	%		39	%				39	%		36	%		38	%		39	%
2007		61	%		64	%		64	%		65	%				65	%		64	%		66	%		68	%
2008		68	%		71	%		71	%		71	%				72	%		69	%		71	%		72	%
2009		66	%		69	%		70	%		70	%				70	%		71	%		73	%		74	%
2010		73	%		76	%		77	%		77	%				77	%		77	%		80	%		81	%
2011		77	%		80	%		81	%		81	%				82	%		83	%		86	%		87	%
2012		82	%		86	%		86	%		87	%				87	%		87	%		90	%		91	%
2013		87	%		90	%		91	%		91	%				92	%		91	%		92	%		—	%
2014		92	%		93	%		93	%		—	%				—	%		—	%		—	%		—	%
Total Flow		56	%		57	%		57	%		57	%				57	%		55	%		56	%		56	%

Total Bulk		42	%		42	%		41	%		41	%				41	%		34	%		31	%		31	%
Total		52	%		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⁾	The percentages in this table are based on the amount of primary insurance in-force in each loan band as a percentage of total insurance in-force.

⁽³⁾

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

FOURTH QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(dollar amounts in millions)


Primary Insurance	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Insured loans in-force		1,496,616			1,490,221			1,481,201			1,477,063			1,474,181
Insured delinquent loans		4,953			5,300			5,405			5,070			4,980
Insured delinquency rate		0.33	%		0.36	%		0.36	%		0.34	%		0.34	%

Flow loans in-force		1,378,584			1,370,136			1,362,236			1,355,635			1,350,571
Flow delinquent loans		4,714			5,031			5,125			4,813			4,760
Flow delinquency rate		0.34	%		0.37	%		0.38	%		0.36	%		0.35	%

Bulk loans in-force		118,032			120,085			118,965			121,428			123,610
Bulk delinquent loans		239			269			280			257			220
Bulk delinquency rate		0.20	%		0.22	%		0.24	%		0.21	%		0.18	%

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

Beginning Reserves	$	161		$	171		$	168		$	172		$	198
Paid claims		(14	)		(19	)		(24	)		(27	)		(39	)
Increase in reserves		15			22			24			17			20
Impact of changes in foreign exchange rates		(10	)		(13	)		3			6			(7	)

Ending Reserves	$	152		$	161		$	171		$	168		$	172


	December 31, 2014						September 30, 2014						December 31, 2013
State and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
New South Wales		29	%		0.27	%		29	%		0.30	%		30	%		0.30%
Victoria		23			0.30	%		23			0.32	%		23			0.30%
Queensland		23			0.47	%		23			0.49	%		22			0.46%
Western Australia		11			0.32	%		11			0.34	%		11			0.29%
South Australia		6			0.44	%		6			0.43	%		6			0.40%
New Zealand		2			0.28	%		2			0.26	%		2			0.38%
Australian Capital Territory		3			0.16	%		3			0.13	%		3			0.10%
Tasmania		2			0.25	%		2			0.31	%		2			0.31%
Northern Territory		1			0.16	%		1			0.21	%		1			0.25%

Total		100	%		0.33	%		100	%		0.36	%		100	%		0.34%

By Policy Year
2006 and prior		32	%		0.20	%		32	%		0.22	%		35	%		0.21%
2007		8			0.63	%		8			0.68	%		9			0.69%
2008		7			0.87	%		8			0.93	%		8			0.85%
2009		9			0.66	%		9			0.70	%		10			0.62%
2010		6			0.38	%		7			0.38	%		8			0.34%
2011		7			0.40	%		7			0.41	%		8			0.31%
2012		9			0.32	%		10			0.33	%		11			0.19%
2013		11			0.18	%		11			0.15	%		11			0.02%
2014		11			0.02	%		8			0.01	%		—			— %

Total		100	%		0.33	%		100	%		0.36	%		100	%		0.34%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment—Australia

(Australian dollar amounts in millions)


	2014														2013
	4Q			3Q			2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims
Flow	$	15		$	20		$	25		$	30		$	90	$	41		$	39		$	44		$	59		$	183
Bulk		—			1			—			—			1		—			2			—			—			2

Total Paid Claims	$	15		$	21		$	25		$	30		$	91	$	41		$	41		$	44		$	59		$	185


Average Paid Claim (in thousands)	$	49.5		$	58.6		$	60.5		$	65.1				$	71.5		$	79.9		$	80.3		$	81.4

Average Reserve Per Delinquency (in thousands)	$	37.6		$	34.8		$	33.6		$	35.7				$	38.6		$	38.8		$	37.7		$	38.9

Loss Metrics
Beginning Reserves	$	184		$	181		$	181		$	192				$	212		$	220		$	228		$	241
Paid claims		(15	)		(21	)		(25	)		(30	)				(41	)		(41	)		(44	)		(59	)
Increase in reserves		17			24			25			19					21			33			36			46

Ending Reserves	$	186		$	184		$	181		$	181				$	192		$	212		$	220		$	228

Loan Amount⁽¹⁾

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

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


Average Primary Loan Size (in thousands)	$	210		$	208		$	207		$	205				$	203		$	202		$	200		$	198
Average Effective Loan-To-Value Ratios By Policy Year^(2),(3)
2006 and prior		36	%		38	%		38	%		40	%				41	%		43	%		47	%		48	%
2007		58	%		60	%		61	%		63	%				64	%		66	%		67	%		68	%
2008		66	%		67	%		68	%		70	%				72	%		74	%		74	%		76	%
2009		68	%		69	%		70	%		73	%				75	%		77	%		77	%		79	%
2010		73	%		74	%		76	%		78	%				80	%		83	%		83	%		85	%
2011		74	%		76	%		77	%		80	%				82	%		85	%		85	%		87	%
2012		75	%		77	%		78	%		80	%				82	%		85	%		85	%		86	%
2013		79	%		81	%		82	%		84	%				85	%		87	%		87	%		—	%
2014		86	%		87	%		87	%		—	%				—	%		—	%		—	%		—	%
Total Flow		60	%		61	%		61	%		62	%				64	%		65	%		68	%		69	%

Total Bulk		28	%		28	%		29	%		30	%				31	%		32	%		37	%		38	%
Total		57	%		58	%		58	%		59	%				60	%		61	%		65	%		66	%

All amounts presented in Australian dollars.

⁽¹⁾	The percentages in this table are based on the amount of primary insurance in-force in each loan band as a percentage of total insurance in-force.

⁽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 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.

⁽³⁾	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

FOURTH QUARTER 2014

Selected Key Performance Measures—International Mortgage Insurance Segment

(amounts in millions)


Risk In-Force by Loan-To-Value Ratio⁽¹⁾	December 31, 2014						September 30, 2014
	Primary		Flow		Bulk		Primary		Flow		Bulk
Canada
95.01% and above	$	37,991	$	37,991	$	—	$	38,286	$	38,286	$	—
90.01% to 95.00%		24,838		24,836		2		25,343		25,341		2
80.01% to 90.00%		19,630		15,499		4,131		19,866		15,892		3,974
80.00% and below		24,866		3,038		21,828		25,297		3,094		22,203

Total Canada	$	107,325	$	81,364	$	25,961	$	108,792	$	82,613	$	26,179

Australia
95.01% and above	$	17,143	$	17,143	$	—	$	18,199	$	18,199	$	—
90.01% to 95.00%		22,207		22,200		7		23,213		23,206		7
80.01% to 90.00%		23,482		23,406		76		24,707		24,625		82
80.00% and below		26,758		20,615		6,143		28,761		22,037		6,724

Total Australia	$	89,590	$	83,364	$	6,226	$	94,880	$	88,067	$	6,813

Other Countries⁽²⁾
95.01% and above	$	534	$	534	$	—	$	566	$	566	$	—
90.01% to 95.00%		1,217		1,167		50		1,623		1,565		58
80.01% to 90.00%		617		397		220		946		694		252
80.00% and below		163		130		33		203		166		37

Total Other Countries	$	2,531	$	2,228	$	303	$	3,338	$	2,991	$	347

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 $296 million and $290 million, respectively, of risk in-force in Europe ceded under quota share reinsurance agreements as of December 31, 2014 and September 30, 2014.

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	151		$	146		$	144		$	137		$	578		$	142		$	137		$	141		$	134		$	554
Net investment income		11			19			11			18			59			13			18			10			19			60
Net investment gains (losses)		—			—			—			—			—			—			—			—			—			—
Insurance and investment product fees and other		1			—			1			—			2			—			1			—			1			2

Total revenues		163			165			156			155			639			155			156			151			154			616

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		91			141			62			63			357			108			123			97			84			412
Acquisition and operating expenses, net of deferrals		38			35			34			33			140			35			35			35			39			144
Amortization of deferred acquisition costs and intangibles		2			1			2			2			7			1			2			2			1			6

Total benefits and expenses		131			177			98			98			504			144			160			134			124			562

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		32			(12	)		58			57			135			11			(4	)		17			30			54
Provision (benefit) for income taxes		11			(10	)		19			24			44			5			(1	)		4			9			17

INCOME (LOSS) FROM CONTINUING OPERATIONS		21			(2	)		39			33			91			6			(3	)		13			21			37

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

NET OPERATING INCOME (LOSS)	$	21		$	(2	)	$	39		$	33		$	91		$	6		$	(3	)	$	13		$	21		$	37


Effective tax rate (operating income (loss))		32.5	%		80.1	%		32.4	%		42.0	%		32.2	%		45.0	%		14.0	%		22.9	%		30.1	%		31.6	%

SALES:
New Insurance Written (NIW)
Flow	$	6,900		$	7,500		$	6,100		$	3,900		$	24,400		$	4,900		$	6,400		$	6,300		$	4,700		$	22,300
Bulk		—			—			—			—			—			—			—			—			—			—

Total U.S. Mortgage Insurance NIW	$	6,900		$	7,500		$	6,100		$	3,900		$	24,400		$	4,900		$	6,400		$	6,300		$	4,700		$	22,300

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	2014																				2013
	4Q					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)			Flow NIW		Premium Rate (bps)
Product
Monthly⁽¹⁾	$	5,100		60		$	6,100		59		$	5,300		59		$	3,400		58		$	4,300		62		$	5,800		60		$	5,600		58		$	4,300		56
Single		1,800		155			1,400		194			800		197			500		200			600		207			600		210			700		205			400		201

Total Flow	$	6,900				$	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			Flow NIW		% of Flow NIW
FICO Scores
Over 735	$	4,100		59	%	$	4,400		59	%	$	3,600		59	%	$	2,400		61	%	$	3,100		63	%	$	4,400		69	%	$	4,500		72	%	$	3,400		72	%
680 - 735		2,200		32			2,400		32			2,000		33			1,200		31			1,500		31			1,900		29			1,600		25			1,200		26
660 - 679⁽²⁾		300		5			400		5			300		5			200		5			200		4			100		2			200		3			100		2
620 - 659		300		4			300		4			200		3			100		3			100		2			—		—			—		—			—		—
<620		—		—			—		—			—		—			—		—			—		—			—		—			—		—			—		—

Total Flow	$	6,900		100	%	$	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	$	100		2	%	$	200		3	%	$	100		2	%	$	100		3	%	$	200		4	%	$	200		3	%	$	200		3	%	$	100		2	%
90.01% to 95.00%		3,500		51			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%		2,300		33			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		14			1,000		13			800		13			600		15			800		16			1,000		16			1,100		17			1,000		21

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

Origination
Purchase	$	5,300		77	%	$	6,400		85	%	$	5,100		84	%	$	3,000		77	%	$	3,800		78	%	$	4,600		72	%	$	3,800		60	%	$	2,200		47	%
Refinance		1,600		23			1,100		15			1,000		16			900		23			1,100		22			1,800		28			2,500		40			2,500		53

Total Flow	$	6,900		100	%	$	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

FOURTH QUARTER 2014

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	171		$	162		$	151		$	144		$	628		$	148		$	140		$	144		$	135		$	567

New Risk Written
Flow	$	1,703		$	1,878		$	1,521		$	960		$	6,062		$	1,196		$	1,577		$	1,478		$	1,091		$	5,342
Bulk		—			—			—			—			—			—			—			—			—			—

Total Primary		1,703			1,878			1,521			960			6,062			1,196			1,577			1,478			1,091			5,342
Pool		—			—			—			—			—			—			—			—			—			—

Total New Risk Written	$	1,703		$	1,878		$	1,521		$	960		$	6,062		$	1,196		$	1,577		$	1,478		$	1,091		$	5,342


Primary Insurance In-Force	$	114,400		$	112,400		$	110,500		$	109,100					$	109,300		$	109,000		$	108,800		$	109,300

Risk In-Force
Flow	$	28,112		$	27,507		$	26,880		$	26,405					$	26,327		$	26,194		$	25,957		$	25,626
Bulk⁽¹⁾		402			419			434			442						448			456			463			485

Total Primary		28,514			27,926			27,314			26,847						26,775			26,650			26,420			26,111
Pool		151			159			163			171						177			187			196			205

Total Risk In-Force	$	28,665		$	28,085		$	27,477		$	27,018					$	26,952		$	26,837		$	26,616		$	26,316


Primary Risk In-Force Subject To Captives		6	%		7	%		7	%		8	%					9	%		10	%		11	%		12	%

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

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

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

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

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

Risk To Capital Ratio⁽⁴⁾		14:5:1			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)	$	181		$	180		$	178		$	176					$	175		$	174		$	172		$	168

Estimated Savings For Loss Mitigation Activities⁽⁵⁾	$	59		$	67		$	102		$	114		$	342		$	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 December 31, 2014, 83% 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

FOURTH QUARTER 2014

Loss Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow
Direct	$	142		$	148		$	148		$	178		$	616		$	198		$	216		$	197		$	253		$	864
Assumed⁽¹⁾		3			4			6			6			19			8			9			12			13			42
Ceded		(4	)		(3	)		(4	)		(15	)		(26	)		(8	)		(9	)		(11	)		(17	)		(45	)
Loss adjustment expenses		4			4			4			5			17			6			6			6			6			24

Total Flow		145			153			154			174			626			204			222			204			255			885
Bulk		2			2			2			2			8			2			3			6			3			14

Total Primary		147			155			156			176			634			206			225			210			258			899
Pool		2			1			1			1			5			1			1			2			1			5

Total Paid Claims	$	149		$	156		$	157		$	177		$	639		$	207		$	226		$	212		$	259		$	904


Average Paid Claim (in thousands)	$	46.6		$	47.6		$	47.2		$	43.6					$	45.3		$	45.3		$	45.0		$	44.2

Average Direct Paid Claim (in thousands)⁽²⁾	$	48.6		$	46.0		$	45.6		$	44.5					$	43.5		$	43.5		$	42.3		$	43.5

Average Reserve Per Delinquency (in thousands)
Flow	$	30.2		$	30.7		$	30.0		$	30.3					$	29.4		$	29.6		$	30.0		$	29.8
Bulk loans with established reserve		20.4			20.5			22.5			19.2						19.7			20.0			20.8			21.9
Bulk loans with no reserve⁽³⁾		—			—			—			—						—			—			—			—

Reserves:
Flow direct case	$	1,065		$	1,122		$	1,083		$	1,172					$	1,277		$	1,377		$	1,471		$	1,566
Bulk direct case		21			22			24			25						27			28			29			33
Assumed⁽¹⁾		21			21			24			29						35			39			51			57
All other⁽⁴⁾		73			74			125			129						143			143			145			164

Total Reserves	$	1,180		$	1,239		$	1,256		$	1,355					$	1,482		$	1,587		$	1,696		$	1,820


Beginning Reserves	$	1,239		$	1,256		$	1,355		$	1,482		$	1,482		$	1,587		$	1,696		$	1,820		$	2,009		$	2,009
Paid claims		(153	)		(158	)		(162	)		(192	)		(665	)		(215	)		(235	)		(223	)		(276	)		(949	)
Increase in reserves		94			141			63			65			363			110			126			99			87			422

Ending Reserves	$	1,180		$	1,239		$	1,256		$	1,355		$	1,180		$	1,482		$	1,587		$	1,696		$	1,820		$	1,482


Beginning Reinsurance Recoverable⁽⁵⁾	$	25		$	27		$	31		$	44		$	44		$	50		$	56		$	66		$	80		$	80
Ceded paid claims		(4	)		(2	)		(5	)		(15	)		(26	)		(8	)		(9	)		(11	)		(17	)		(45	)
Increase in recoverable		3			—			1			2			6			2			3			1			3			9

Ending Reinsurance Recoverable	$	24		$	25		$	27		$	31		$	24		$	44		$	50		$	56		$	66		$	44

Loss Ratio⁽⁶⁾		61	%		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 9 percentage points for the three months ended September 30, 2014 and the twelve months ended December 31, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		38,177			39,485			40,897			43,733						49,255			52,509			55,413			59,789
Bulk loans with an established reserve		1,109			1,147			1,147			1,434						1,491			1,509			1,526			1,603
Bulk loans with no reserve⁽¹⁾		500			515			561			694						713			726			1,260			1,412

Total Number of Primary Delinquencies		39,786			41,147			42,605			45,861						51,459			54,744			58,199			62,804


Beginning Number of Primary Delinquencies		41,147			42,605			45,861			51,459			51,459			54,744			58,199			62,804			69,239			69,239
New delinquencies		10,826			11,574			10,568			12,100			45,068			13,205			14,105			13,192			15,060			55,562
Delinquency cures		(9,030	)		(9,790	)		(10,545	)		(13,678	)		(43,043	)		(11,974	)		(12,603	)		(13,127	)		(15,677	)		(53,381	)
Paid claims		(3,157	)		(3,242	)		(3,279	)		(4,020	)		(13,698	)		(4,516	)		(4,957	)		(4,670	)		(5,818	)		(19,961	)

Ending Number of Primary Delinquencies		39,786			41,147			42,605			45,861			39,786			51,459			54,744			58,199			62,804			51,459

Composition of Cures
Reported delinquent and cured-intraquarter		1,434			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		5,340			5,202			5,335			7,252						6,253			6,291			6,748			8,125
4 - 11 payments		1,613			1,772			2,253			2,391						2,385			2,387			2,737			2,856
12 payments or more		643			723			964			894						1,229			1,437			1,195			1,177

Total		9,030			9,790			10,545			13,678						11,974			12,603			13,127			15,677

Primary Delinquencies by Missed Payment Status
3 payments or less		11,318			11,478			11,228			11,351						13,992			14,078			13,871			14,674
4 - 11 payments		9,684			9,610			9,913			11,463						12,410			13,134			14,503			16,804
12 payments or more		18,784			20,059			21,464			23,047						25,057			27,532			29,825			31,326

Primary Delinquencies		39,786			41,147			42,605			45,861						51,459			54,744			58,199			62,804



	December 31, 2014
Flow Delinquencies and Percentage Reserved by Payment Status	Delinquencies			Direct Case Reserves⁽²⁾			Risk In-Force			Reserves as % of Risk In-Force
3 payments or less in default		10,849		$	76		$	426			18%
4 - 11 payments in default		9,368			238			383			62%
12 payments or more in default		17,960			751			895			84%

Total		38,177		$	1,065		$	1,704			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

FOURTH QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2014												2013
	4Q			3Q			2Q			1Q			4Q			3Q			2Q			1Q
Risk In-Force by Credit Quality⁽¹⁾
Primary by FICO Scores >679		82	%		81	%		81	%		80	%		79	%		79	%		78	%		76	%
Primary by FICO Scores 620-679		15	%		15	%		15	%		16	%		17	%		17	%		18	%		19	%
Primary by FICO Scores 575-619		2	%		3	%		3	%		3	%		3	%		3	%		3	%		4	%
Primary by FICO Scores <575		1	%		1	%		1	%		1	%		1	%		1	%		1	%		1	%

Flow by FICO Scores >679		82	%		81	%		81	%		80	%		79	%		79	%		77	%		76	%
Flow by FICO Scores 620-679		15	%		15	%		15	%		16	%		17	%		17	%		19	%		19	%
Flow by FICO Scores 575-619		2	%		3	%		3	%		3	%		3	%		3	%		3	%		4	%
Flow by FICO Scores <575		1	%		1	%		1	%		1	%		1	%		1	%		1	%		1	%

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

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

Primary Loans
Primary loans in-force		630,852			624,850			620,415			618,442			624,236			627,536			633,685			649,570
Primary delinquent loans		39,786			41,147			42,605			45,861			51,459			54,744			58,199			62,804
Primary delinquency rate		6.31	%		6.59	%		6.87	%		7.42	%		8.24	%		8.72	%		9.18	%		9.67	%

Flow loans in-force		599,206			591,823			585,719			582,553			586,546			589,703			590,949			590,051
Flow delinquent loans		38,177			39,485			40,897			43,733			49,255			52,509			55,413			59,789
Flow delinquency rate		6.37	%		6.67	%		6.98	%		7.51	%		8.40	%		8.90	%		9.38	%		10.13	%

Bulk loans in-force		31,646			33,027			34,696			35,889			37,690			37,833			42,736			59,519
Bulk delinquent loans		1,609			1,662			1,708			2,128			2,204			2,235			2,786			3,015
Bulk delinquency rate		5.08	%		5.03	%		4.92	%		5.93	%		5.85	%		5.91	%		6.52	%		5.07	%

A minus and sub-prime loans in-force		33,529			34,825			36,219			37,714			39,307			41,081			42,993			44,873
A minus and sub-prime delinquent loans		7,851			8,017			8,238			8,789			10,023			10,548			10,803			11,484
A minus and sub-prime delinquency rate		23.42	%		23.02	%		22.74	%		23.30	%		25.50	%		25.68	%		25.13	%		25.59	%

Pool Loans
Pool loans in-force		8,282			10,125			10,336			10,710			11,354			11,657			12,063			12,558
Pool delinquent loans		521			549			546			575			628			670			634			674
Pool delinquency rate		6.29	%		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

FOURTH QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	December 31, 2014									September 30, 2014									December 31, 2013
	% of Total Reserves⁽¹⁾			% of Primary Risk In-Force			Primary Delinquency Rate			% of Total Reserves⁽¹⁾			% of Primary Risk In-Force			Primary Delinquency Rate			% of Total Reserves⁽¹⁾			% of Primary Risk In-Force			Primary Delinquency Rate
By Region
Southeast⁽²⁾		28	%		20	%		7.89	%		29	%		20	%		8.46	%		32	%		20	%		11.02	%
South Central⁽³⁾		8			16			4.50	%		8			16			4.63	%		8			16			5.85	%
Northeast⁽⁴⁾		27			15			10.83	%		26			15			11.03	%		20			15			12.30	%
Pacific⁽⁵⁾		10			12			4.51	%		10			12			4.87	%		11			12			6.47	%
North Central⁽⁶⁾		10			12			5.35	%		9			12			5.64	%		11			11			7.39	%
Great Lakes⁽⁷⁾		5			10			4.48	%		6			10			4.64	%		6			10			6.03	%
New England⁽⁸⁾		5			6			6.34	%		5			6			6.47	%		4			6			7.74	%
Mid-Atlantic⁽⁹⁾		5			5			6.32	%		5			5			6.50	%		5			5			8.18	%
Plains⁽¹⁰⁾		2			4			4.39	%		2			4			4.44	%		3			5			5.46	%

Total		100	%		100	%		6.31	%		100	%		100	%		6.59	%		100	%		100	%		8.24	%


By State
California		4	%		7	%		3.09	%		4	%		7	%		3.29	%		4	%		7	%		4.27	%
Texas		3	%		7	%		4.55	%		3	%		7	%		4.57	%		3	%		7	%		5.68	%
New York		12	%		6	%		10.88	%		12	%		6	%		11.14	%		9	%		7	%		11.90	%
Florida		19	%		6	%		12.61	%		20	%		6	%		14.03	%		22	%		6	%		19.50	%
Illinois		6	%		5	%		6.76	%		6	%		5	%		7.20	%		7	%		5	%		9.67	%
New Jersey		11	%		4	%		15.15	%		10	%		4	%		15.12	%		8	%		4	%		16.76	%
Pennsylvania		4	%		4	%		7.78	%		4	%		4	%		8.02	%		3	%		4	%		9.73	%
Ohio		2	%		4	%		5.06	%		2	%		4	%		5.20	%		2	%		4	%		6.69	%
Georgia		3	%		4	%		6.39	%		3	%		4	%		6.67	%		3	%		4	%		8.48	%
North Carolina		2	%		3	%		5.59	%		2	%		4	%		5.97	%		2	%		4	%		7.43	%

⁽¹⁾	Total reserves were $1,180 million, $1,239 million and $1,482 million as of December 31, 2014, September 30, 2014, and December 31, 2013, respectively.

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

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

⁽⁴⁾	New Jersey, New York and Pennsylvania.

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

⁽⁶⁾	Illinois, Minnesota, Missouri and Wisconsin.

⁽⁷⁾	Indiana, Kentucky, Michigan and Ohio.

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

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(amounts in millions)


	December 31, 2014					September 30, 2014					December 31, 2013
	Primary Risk In-Force		Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate			Primary Risk In-Force		Primary Delinquency Rate
Lender concentration (by original applicant)	$	28,514		6.31	%	$	27,926		6.59	%	$	26,775		8.24	%
Top 10 lenders		12,306		7.65	%		12,337		7.79	%		12,603		9.36	%
Top 20 lenders		14,322		7.47	%		14,309		7.63	%		14,447		9.26	%

Loan-to-value ratio
95.01% and above	$	6,763		9.07	%	$	6,912		9.02	%	$	7,377		10.40	%
90.01% to 95.00%		12,008		4.99	%		11,412		5.36	%		9,966		7.41	%
80.01% to 90.00%		9,383		6.03	%		9,230		6.40	%		9,032		7.96	%
80.00% and below		360		3.55	%		372		3.51	%		400		3.69	%

Total	$	28,514		6.31	%	$	27,926		6.59	%	$	26,775		8.24	%

Loan grade
Prime	$	27,262		5.35	%	$	26,627		5.62	%	$	25,320		7.08	%
A minus and sub-prime		1,252		23.42	%		1,299		23.02	%		1,455		25.50	%

Total	$	28,514		6.31	%	$	27,926		6.59	%	$	26,775		8.24	%

Loan type⁽¹⁾
First mortgages
Fixed rate mortgage
Flow	$	27,845		6.20	%	$	27,228		6.49	%	$	25,996		8.18	%
Bulk		388		4.87	%		404		4.80	%		432		5.58	%
Adjustable rate mortgage
Flow		267		27.58	%		279		27.78	%		331		29.08	%
Bulk		14		11.53	%		15		12.11	%		16		14.37	%
Second mortgages		—		—	%		—		—	%		—		—	%

Total	$	28,514		6.31	%	$	27,926		6.59	%	$	26,775		8.24	%

Type of documentation
Alt-A
Flow	$	392		28.71	%	$	410		29.79	%	$	475		30.82	%
Bulk		29		11.25	%		30		12.17	%		30		12.44	%
Standard⁽²⁾
Flow		27,720		6.08	%		27,097		6.35	%		25,852		8.03	%
Bulk		373		4.74	%		389		4.64	%		418		5.45	%

Total	$	28,514		6.31	%	$	27,926		6.59	%	$	26,775		8.24	%

Mortgage term
15 years and under	$	1,072		0.87	%	$	1,099		0.82	%	$	1,111		0.86	%
More than 15 years		27,442		6.68	%		26,827		7.00	%		25,664		8.79	%

Total	$	28,514		6.31	%	$	27,926		6.59	%	$	26,775		8.24	%

⁽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

FOURTH QUARTER 2014

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	December 31, 2014
Policy Year	Average Rate⁽¹⁾			% of Total Reserves⁽²⁾			Primary Insurance In-Force			% of Total			Primary Risk In-Force		% of Total			Deliquency Rate
2003 and prior		6.31	%		7.2	%	$	3,237			2.8	%	$	723		2.5	%		16.59	%
2004		5.73	%		4.9			2,245			2.0			527		1.8			12.76	%
2005		5.68	%		12.0			4,616			4.0			1,231		4.3			14.36	%
2006		5.92	%		17.6			7,202			6.3			1,833		6.4			14.14	%
2007		5.84	%		37.5			17,356			15.2			4,355		15.3			13.31	%
2008		5.37	%		18.1			15,297			13.4			3,868		13.6			7.55	%
2009		4.98	%		0.7			2,571			2.2			588		2.1			2.00	%
2010		4.69	%		0.6			3,384			2.9			805		2.8			1.42	%
2011		4.50	%		0.5			4,570			4.0			1,141		4.0			1.04	%
2012		3.79	%		0.4			11,315			9.9			2,843		10.0			0.43	%
2013		3.96	%		0.4			19,086			16.7			4,726		16.6			0.31	%
2014		4.39	%		0.1			23,566			20.6			5,874		20.6			0.10	%

Total		4.98	%		100.0	%	$	114,445			100.0	%	$	28,514		100.0	%		6.31	%


	December 31, 2014						September 30, 2014
Occupancy and Property Type	% of Primary Risk In-Force			Deliquency Rate			% of Primary Risk In-Force			Deliquency Rate
Occupancy Status
Primary residence		95.1	%		6.24	%		95.0	%		6.51	%
Second home		2.6			6.57	%		2.6			7.00	%
Non-owner occupied		2.3			7.95	%		2.4			8.13	%

Total		100.0	%		6.31	%		100.0	%		6.59	%

Property Type
Single family detached		88.9	%		6.09	%		88.8	%		6.35	%
Condominium and co-operative		9.6			7.06	%		9.7			7.39	%
Multi-family and other		1.5			13.10	%		1.5			13.69	%

Total		100.0	%		6.31	%		100.0	%		6.59	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $1,180 million as of December 31, 2014.

Corporate and Other Division

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Loss—Corporate and Other Division

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	172		$	186		$	200		$	176		$	734		$	159		$	160		$	156		$	166		$	641
Net investment income		56			50			56			53			215			67			53			68			69			257
Net investment gains (losses)		(18	)		(24	)		(3	)		(17	)		(62	)		19			(24	)		(9	)		(52	)		(66	)
Insurance and investment product fees and other		53			52			53			54			212			55			56			53			100			264

Total revenues		263			264			306			266			1,099			300			245			268			283			1,096

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		58			65			62			54			239			48			49			51			43			191
Interest credited		31			30			29			29			119			30			28			29			32			119
Acquisition and operating expenses, net of deferrals		136			138			155			135			564			135			162			140			179			616
Amortization of deferred acquisition costs and intangibles		42			36			40			42			160			35			28			38			18			119
Interest expense		88			84			91			98			361			89			90			89			94			362

Total benefits and expenses		355			353			377			358			1,443			337			357			347			366			1,407

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(92	)		(89	)		(71	)		(92	)		(344	)		(37	)		(112	)		(79	)		(83	)		(311	)
Provision (benefit) for income taxes		(174	)		2			(23	)		(50	)		(245	)		(14	)		(22	)		(28	)		(26	)		(90	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		82			(91	)		(48	)		(42	)		(99	)		(23	)		(90	)		(51	)		(57	)		(221	)
Income (loss) from discontinued operations, net of taxes		—			—			—			—			—			—			2			6			(20	)		(12	)

NET INCOME (LOSS)		82			(91	)		(48	)		(42	)		(99	)		(23	)		(88	)		(45	)		(77	)		(233	)
ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		9			11			1			10			31			(10	)		11			—			21			22
(Gains) losses on early extinguishment of debt, net		—			—			—			—			—			—			20			—			—			20
Tax impact from potential business portfolio changes		(108	)		—			—			—			(108	)		—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			—			3			—			3
(Income) loss from discontinued operations, net of taxes		—			—			—			—			—			—			(2	)		(6	)		20			12

NET OPERATING LOSS	$	(17	)	$	(80	)	$	(47	)	$	(32	)	$	(176	)	$	(33	)	$	(59	)	$	(48	)	$	(36	)	$	(176	)


Effective tax rate (operating loss)		79.0	%		-10.5	%		33.0	%		57.5	%		40.5	%		37.5	%		8.1	%		35.9	%		28.2	%		27.4	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Three months ended December 31, 2014	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	172		$	—		$	—		$	172
Net investment income		22			32			2			56
Net investment gains (losses)		(1	)		(23	)		6			(18	)
Insurance and investment product fees and other		—			51			2			53

Total revenues		193			60			10			263

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		48			10			—			58
Interest credited		—			31			—			31
Acquisition and operating expenses, net of deferrals		110			22			4			136
Amortization of deferred acquisition costs and intangibles		28			13			1			42
Interest expense		12			—			76			88

Total benefits and expenses		198			76			81			355

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(5	)		(16	)		(71	)		(92	)
Benefit for income taxes		(109	)		(19	)		(46	)		(174	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		104			3			(25	)		82

NET INCOME (LOSS)		104			3			(25	)		82

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		—			13			(4	)		9
Tax impact from potential business portfolio changes		(108	)		—			—			(108	)

NET OPERATING INCOME (LOSS)	$	(4	)	$	16		$	(29	)	$	(17	)


Effective tax rate (operating income (loss))		21.7	%		NM	⁽²⁾		61.7	%		79.0	%

Three months ended December 31, 2013	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	158		$	1		$	—		$	159
Net investment income		29			38			—			67
Net investment gains (losses)		4			24			(9	)		19
Insurance and investment product fees and other		1			54			—			55

Total revenues		192			117			(9	)		300

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		39			9			—			48
Interest credited		—			30			—			30
Acquisition and operating expenses, net of deferrals		107			21			7			135
Amortization of deferred acquisition costs and intangibles		27			9			(1	)		35
Interest expense		8			1			80			89

Total benefits and expenses		181			70			86			337

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		11			47			(95	)		(37	)
Provision (benefit) for income taxes		(5	)		15			(24	)		(14	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		16			32			(71	)		(23	)

NET INCOME (LOSS)		16			32			(71	)		(23	)

ADJUSTMENT TO NET INCOME (LOSS):
Net investment (gains) losses, net		(3	)		(13	)		6			(10	)

NET OPERATING INCOME (LOSS)	$	13		$	19		$	(65	)	$	(33	)


Effective tax rate (operating income (loss))		-95.6	%		28.1	%		24.8	%		37.5	%

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

⁽²⁾	“NM” is defined as not meaningful for percentages greater than 200%.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Income (Loss)—Corporate and Other Division

(amounts in millions)


Twelve months ended December 31, 2014	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	731		$	3		$	—		$	734
Net investment income		101			129			(15	)		215
Net investment gains (losses)		—			(66	)		4			(62	)
Insurance and investment product fees and other		5			209			(2	)		212

Total revenues		837			275			(13	)		1,099

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		202			37			—			239
Interest credited		—			119			—			119
Acquisition and operating expenses, net of deferrals		462			84			18			564
Amortization of deferred acquisition costs and intangibles		118			39			3			160
Interest expense		46			1			314			361

Total benefits and expenses		828			280			335			1,443

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		9			(5	)		(348	)		(344	)
Benefit for income taxes		(107	)		(19	)		(119	)		(245	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		116			14			(229	)		(99	)

NET INCOME (LOSS)		116			14			(229	)		(99	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		—			34			(3	)		31
Tax impact from potential business portfolio changes		(108	)		—			—			(108	)

NET OPERATING INCOME (LOSS)	$	8		$	48		$	(232	)	$	(176	)


Effective tax rate (operating income (loss))		5.8	%		-1.0	%		34.0	%		40.5	%

Twelve months ended December 31, 2013	International Protection Segment			Runoff Segment			Corporate and Other⁽¹⁾			Total
REVENUES:
Premiums	$	636		$	5		$	—		$	641
Net investment income		119			139			(1	)		257
Net investment gains (losses)		27			(58	)		(35	)		(66	)
Insurance and investment product fees and other		4			216			44			264

Total revenues		786			302			8			1,096

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		159			32			—			191
Interest credited		—			119			—			119
Acquisition and operating expenses, net of deferrals		433			81			102			616
Amortization of deferred acquisition costs and intangibles		106			6			7			119
Interest expense		42			2			318			362

Total benefits and expenses		740			240			427			1,407

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		46			62			(419	)		(311	)
Provision (benefit) for income taxes		7			13			(110	)		(90	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		39			49			(309	)		(221	)
Income (loss) from discontinued operations, net of taxes		—			—			(12	)		(12	)

NET INCOME (LOSS)		39			49			(321	)		(233	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(18	)		17			23			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		—			—			12			12

NET OPERATING INCOME (LOSS)	$	24		$	66		$	(266	)	$	(176	)


Effective tax rate (operating income (loss))		-5.1	%		25.5	%		24.9	%		27.4	%

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

International Protection Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Income (Loss) and Sales—International Protection Segment

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	172		$	185		$	199		$	175		$	731		$	158		$	159		$	154		$	165		$	636
Net investment income		22			27			22			30			101			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		193			214			223			207			837			192			187			202			205			786

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		48			52			56			46			202			39			40			41			39			159
Interest credited		—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		110			117			126			109			462			107			106			110			110			433
Amortization of deferred acquisition costs and intangibles		28			30			30			30			118			27			25			26			28			106
Interest expense		12			10			9			15			46			8			9			11			14			42

Total benefits and expenses		198			209			221			200			828			181			180			188			191			740

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(5	)		5			2			7			9			11			7			14			14			46
Provision (benefit) for income taxes		(109	)		3			—			(1	)		(107	)		(5	)		3			5			4			7

INCOME FROM CONTINUING OPERATIONS		104			2			2			8			116			16			4			9			10			39

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			1			—			(1	)		—			(3	)		—			(11	)		(4	)		(18	)
Tax impact from potential business portfolio changes		(108	)		—			—			—			(108	)		—			—			—			—			—
Expenses related to restructuring, net		—			—			—			—			—			—			—			3			—			3

NET OPERATING INCOME (LOSS)⁽¹⁾	$	(4	)	$	3		$	2		$	7		$	8		$	13		$	4		$	1		$	6		$	24



Effective tax rate (operating income (loss))		21.7	%		47.7	%		6.8	%		-22.3	%		5.8	%		-95.6	%		36.7	%		38.7	%		26.1	%		-5.1	%

Net Premiums Written
Northern Europe	$	85		$	94		$	104		$	115		$	398		$	104		$	113		$	106		$	106		$	429
Southern Europe		71			76			86			108			341			72			71			74			78			295
Structured Deals⁽²⁾		8			5			—			1			14			7			8			(10	)		28			33
New Markets		8			7			15			11			41			9			9			14			21			53

Pre-Deposit Accounting Basis⁽³⁾		172			182			205			235			794			192			201			184			233			810

Deposit Accounting Adjustments		23			17			6			39			85			40			47			35			80			202

Total⁽⁴⁾	$	149		$	165		$	199		$	196		$	709		$	152		$	154		$	149		$	153		$	608



Loss Ratio		28	%		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 (loss) adjusted for foreign exchange as compared to the prior year period for the International Protection segment was $(3) million and $9 million for the three and twelve months ended December 31, 2014, respectively.

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

⁽³⁾

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

⁽⁴⁾	Net premiums written adjusted for foreign exchange as compared to the prior year period for the International Protection segment were $159 million and $701 million for the three and twelve months ended December 31, 2014, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

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

(amounts in millions)


	4Q 2014									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			Reported			Deposit Accounting Adjustments			Pre-Deposit Accounting Basis
REVENUES:
Premiums	$	172		$	30		$	202		$	185		$	34		$	219		$	199		$	41		$	240		$	175		$	43		$	218		$	731		$	148		$	879
Net investment income		22			(7	)		15			27			(10	)		17			22			(7	)		15			30			(10	)		20			101			(34	)		67
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		193			23			216			214			24			238			223			34			257			207			33			240			837			114			951

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		48			14			62			52			9			61			56			20			76			46			20			66			202			63			265
Interest credited		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		110			8			118			117			9			126			126			8			134			109			9			118			462			34			496
Amortization of deferred acquisition costs and intangibles		28			7			35			30			8			38			30			9			39			30			10			40			118			34			152
Interest expense		12			(6	)		6			10			(2	)		8			9			(3	)		6			15			(6	)		9			46			(17	)		29

Total benefits and expenses		198			23			221			209			24			233			221			34			255			200			33			233			828			114			942

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(5	)		—			(5	)		5			—			5			2			—			2			7			—			7			9			—			9
Provision (benefit) for income taxes		(109	)		—			(109	)		3			—			3			—			—			—			(1	)		—			(1	)		(107	)		—			(107	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		104			—			104			2			—			2			2			—			2			8			—			8			116			—			116

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			—			—			1			—			1			—			—			—			(1	)		—			(1	)		—			—			—
Tax impact from potential business portfolio changes		(108	)		—			(108	)		—			—			—			—			—			—			—			—			—			(108	)		—			(108	)

NET OPERATING INCOME (LOSS)⁽¹⁾	$	(4	)	$	—		$	(4	)	$	3		$	—		$	3		$	2		$	—		$	2		$	7		$	—		$	7		$	8		$	—		$	8

Effective tax rate (operating income (loss))		21.7	%					21.7	%		47.7	%					47.7	%		6.8	%					6.8	%		-22.3	%					-22.3	%		5.8	%					5.8	%

Other Metrics:
Premiums	$	172		$	30		$	202		$	185		$	34		$	219		$	199		$	41		$	240		$	175		$	43		$	218		$	731		$	148		$	879
Benefits and other changes in policy reserves		48			14			62			52			9			61			56			20			76			46			20			66			202			63			265
Commissions⁽²⁾		80			5			85			87			6			93			96			8			104			81			9			90			344			28			372

Margin before profit sharing		44			11			55			46			19			65			47			13			60			48			14			62			185			57			242
Profit share⁽²⁾		18			10			28			22			10			32			18			10			28			19			9			28			77			39			116

Underwriting profit⁽³⁾	$	26		$	1		$	27		$	24		$	9		$	33		$	29		$	3		$	32		$	29		$	5		$	34		$	108		$	18		$	126


Loss Ratio		28	%					31	%		28	%					28	%		28	%					32	%		26	%					30	%		28	%					30	%

Underwriting Margin⁽³⁾		15	%					13	%		13	%					15	%		15	%					13	%		17	%					16	%		15	%					14	%

Combined Ratio⁽⁴⁾		108	%					106	%		108	%					103	%		107	%					104	%		106	%					103	%		107	%					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 (loss) available to Genworth Financial, Inc.’s common stockholders or to segment net operating income (loss). 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 (loss) adjusted for foreign exchange as compared to the prior year period for the International Protection segment was $(3) million and $9 million for the three and twelve months ended December 31, 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

FOURTH 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

FOURTH QUARTER 2014

Net Operating Income—Runoff Segment

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	1		$	1		$	1		$	3		$	1		$	1		$	2		$	1		$	5
Net investment income		32			32			33			32			129			38			33			34			34			139
Net investment gains (losses)		(23	)		(33	)		3			(13	)		(66	)		24			(14	)		(20	)		(48	)		(58	)
Insurance and investment product fees and other		51			53			52			53			209			54			53			53			56			216

Total revenues		60			53			89			73			275			117			73			69			43			302

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		10			13			6			8			37			9			9			10			4			32
Interest credited		31			30			29			29			119			30			28			29			32			119
Acquisition and operating expenses, net of deferrals		22			22			20			20			84			21			18			22			20			81
Amortization of deferred acquisition costs and intangibles		13			5			10			11			39			9			2			8			(13	)		6
Interest expense		—			—			1			—			1			1			—			1			—			2

Total benefits and expenses		76			70			66			68			280			70			57			70			43			240

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(16	)		(17	)		23			5			(5	)		47			16			(1	)		—			62
Provision (benefit) for income taxes		(19	)		(5	)		5			—			(19	)		15			(5	)		—			3			13

INCOME (LOSS) FROM CONTINUING OPERATIONS		3			(12	)		18			5			14			32			21			(1	)		(3	)		49

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		13			17			(3	)		7			34			(13	)		4			7			19			17

NET OPERATING INCOME	$	16		$	5		$	15		$	12		$	48		$	19		$	25		$	6		$	16		$	66


Effective tax rate (operating income)		NM	⁽¹⁾		48.2	%		16.1	%		25.1	%		-1.0	%		28.1	%		-6.9	%		40.9	%		44.8	%		25.5	%

⁽¹⁾	“NM” is defined as not meaningful for percentages greater than 200%.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Selected Operating Performance Measures—Runoff Segment

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Variable Annuities—Income Distribution Series
Account value, beginning of the period	$	5,763		$	5,984		$	5,990		$	6,061		$	6,061		$	6,044		$	5,983		$	6,202		$	6,141		$	6,141
Deposits		9			12			13			16			50			19			19			18			20			76
Surrenders, benefits and product charges		(208	)		(204	)		(210	)		(198	)		(820	)		(212	)		(186	)		(183	)		(173	)		(754	)

Net flows		(199	)		(192	)		(197	)		(182	)		(770	)		(193	)		(167	)		(165	)		(153	)		(678	)
Interest credited and investment performance		102			(29	)		191			111			375			210			228			(54	)		214			598

Account value, end of the period		5,666			5,763			5,984			5,990			5,666			6,061			6,044			5,983			6,202			6,061

Traditional Variable Annuities
Account value, net of reinsurance, beginning of the period		1,492			1,583			1,598			1,643			1,643			1,620			1,601			1,674			1,662			1,662
Deposits		1			2			4			3			10			4			4			2			3			13
Surrenders, benefits and product charges		(70	)		(81	)		(80	)		(78	)		(309	)		(71	)		(67	)		(80	)		(81	)		(299	)

Net flows		(69	)		(79	)		(76	)		(75	)		(299	)		(67	)		(63	)		(78	)		(78	)		(286	)
Interest credited and investment performance		32			(12	)		61			30			111			90			82			5			90			267

Account value, net of reinsurance, end of the period		1,455			1,492			1,583			1,598			1,455			1,643			1,620			1,601			1,674			1,643

Variable Life Insurance
Account value, beginning of the period		311			317			313			316			316			302			293			301			292			292
Deposits		2			2			2			2			8			3			2			2			2			9
Surrenders, benefits and product charges		(9	)		(10	)		(8	)		(11	)		(38	)		(9	)		(10	)		(11	)		(9	)		(39	)

Net flows		(7	)		(8	)		(6	)		(9	)		(30	)		(6	)		(8	)		(9	)		(7	)		(30	)
Interest credited and investment performance		9			2			10			6			27			20			17			1			16			54

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

Total	$	7,434		$	7,566		$	7,884		$	7,901		$	7,434		$	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	$	526		$	667		$	891		$	896		$	896		$	1,036		$	1,077		$	1,970		$	2,153		$	2,153
Surrenders and benefits		(34	)		(142	)		(225	)		(7	)		(408	)		(142	)		(43	)		(900	)		(167	)		(1,252	)

Net flows		(34	)		(142	)		(225	)		(7	)		(408	)		(142	)		(43	)		(900	)		(167	)		(1,252	)
Interest credited		1			1			1			2			5			2			2			7			15			26
Foreign currency translation		—			—			—			—			—			—			—			—			(31	)		(31	)

Account value, end of the period	$	493		$	526		$	667		$	891		$	493		$	896		$	1,036		$	1,077		$	1,970		$	896

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Net Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		2			(9	)		1			(9	)		(15	)		—			(6	)		3			2			(1	)
Net investment gains (losses)		6			9			(6	)		(5	)		4			(9	)		(11	)		(5	)		(10	)		(35	)
Insurance and investment product fees and other		2			(3	)		(1	)		—			(2	)		—			2			(1	)		43			44

Total revenues		10			(3	)		(6	)		(14	)		(13	)		(9	)		(15	)		(3	)		35			8

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		—			—			—			—			—			—			—			—			—			—
Interest credited		—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		4			(1	)		9			6			18			7			38			8			49			102
Amortization of deferred acquisition costs and intangibles		1			1			—			1			3			(1	)		1			4			3			7
Interest expense		76			74			81			83			314			80			81			77			80			318

Total benefits and expenses		81			74			90			90			335			86			120			89			132			427

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(71	)		(77	)		(96	)		(104	)		(348	)		(95	)		(135	)		(92	)		(97	)		(419	)
Provision (benefit) for income taxes		(46	)		4			(28	)		(49	)		(119	)		(24	)		(20	)		(33	)		(33	)		(110	)

LOSS FROM CONTINUING OPERATIONS		(25	)		(81	)		(68	)		(55	)		(229	)		(71	)		(115	)		(59	)		(64	)		(309	)
Income (loss) from discontinued operations, net of taxes⁽²⁾		—			—			—			—			—			—			2			6			(20	)		(12	)

NET LOSS		(25	)		(81	)		(68	)		(55	)		(229	)		(71	)		(113	)		(53	)		(84	)		(321	)

ADJUSTMENTS TO NET LOSS:
Net investment (gains) losses, net		(4	)		(7	)		4			4			(3	)		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	$	(29	)	$	(88	)	$	(64	)	$	(51	)	$	(232	)	$	(65	)	$	(88	)	$	(55	)	$	(58	)	$	(266	)


Effective tax rate (operating loss)		61.7	%		-0.9	%		28.8	%		47.8	%		34.0	%		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

FOURTH QUARTER 2014

Investments Summary

(amounts in millions)


		December 31, 2014					September 30, 2014					June 30, 2014					March 31, 2014					December 31, 2013
		Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total			Carrying Amount		% of Total
Composition of Investment Portfolio
Fixed maturity securities:
Investment grade:
Public fixed maturity securities		$	36,684		47	%	$	36,587		48	%	$	36,726		48	%	$	35,526		48	%	$	34,666		48	%
Private fixed maturity securities			11,630		15			11,493		15			11,608		15			11,125		15			10,563		15
Residential mortgage-backed securities⁽¹⁾			5,094		7			5,003		7			5,057		7			4,945		7			5,069		7
Commercial mortgage-backed securities			2,491		3			2,517		3			2,630		3			2,656		4			2,639		4
Other asset-backed securities			3,669		5			3,770		5			3,700		5			3,343		4			3,119		4
Tax-exempt			361		—			356		—			353		—			317		—			295		—
Non-investment grade fixed maturity securities			2,518		3			2,591		4			2,286		3			2,332		3			2,278		3
Equity securities:
Common stocks and mutual funds			194		—			221		—			227		—			260		—			258		—
Preferred stocks			88		—			92		—			93		—			89		—			83		—
Commercial mortgage loans			6,100		8			6,077		8			5,986		8			5,894		8			5,899		8
Restricted commercial mortgage loans related to securitization entities			201		—			209		—			217		—			227		—			233		—
Policy loans			1,501		2			1,512		2			1,514		2			1,438		2			1,434		2
Cash, cash equivalents and short-term investments			5,218		7			3,655		5			4,220		5			4,492		6			4,434		6
Securities lending			289		1			339		—			277		—			261		—			187		—
Other invested assets:	Limited partnerships		252		—			262		—			263		1			267		—			282		1
	Derivatives:
	Long-term care (LTC) forward starting swap—cash flow		639		1			252		—			197		—			137		—			79		—
	Other cash flow		6		—			10		—			20		—			30		—			46		—
	Fair value		—		—			—		—			—		—			—		—			1		—
	Equity index options—non-qualified		17		—			11		—			4		—			11		—			13		—
	Other non-qualified		470		—			391		1			395		1			352		1			332		1
	Trading portfolio		241		—			226		—			226		—			247		—			239		—
	Counterparty collateral		—		—			521		1			417		1			355		1			199		—
	Restricted other invested assets related to securitization entities		411		1			404		1			404		1			398		1			391		1
	Other		82		—			91		—			82		—			83		—			88		—

Total invested assets and cash		$	78,156		100	%	$	76,590		100	%	$	76,902		100	%	$	74,785		100	%	$	72,827		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	15,743		34	%	$	15,459		33	%	$	15,552		33	%	$	15,338		34	%	$	15,148		34	%
AA			4,844		10			4,957		11			5,056		11			4,759		10			4,627		11
A			13,887		30			13,823		30			13,470		29			12,920		29			12,488		28
BBB			10,612		23			10,753		23			11,162		24			10,847		24			10,720		24
BB			1,362		3			1,388		3			1,232		3			1,251		3			1,148		3
B			76		—			78		—			82		—			87		—			132		—
CCC and lower			112		—			113		—			113		—			114		—			112		—

Total public fixed maturity securities		$	46,636		100	%	$	46,571		100	%	$	46,667		100	%	$	45,316		100	%	$	44,375		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	1,597		10	%	$	1,585		10	%	$	1,636		10	%	$	1,554		10	%	$	1,483		11	%
AA			2,104		14			1,902		12			1,800		12			1,661		11			1,570		11
A			4,928		31			5,034		32			5,027		32			4,593		31			4,331		30
BBB			6,214		39			6,213		39			6,371		40			6,240		42			5,984		42
BB			794		5			838		5			723		5			740		5			736		5
B			95		1			95		1			57		—			57		—			56		—
CCC and lower			79		—			79		1			79		1			83		1			94		1

Total private fixed maturity securities		$	15,811		100	%	$	15,746		100	%	$	15,693		100	%	$	14,928		100	%	$	14,254		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

FOURTH QUARTER 2014

Fixed Maturity Securities Summary

(amounts in millions)


	December 31, 2014					September 30, 2014					June 30, 2014					March 31, 2014					December 31, 2013
	Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total			Fair Value		% of Total
Fixed Maturity Securities—Security Sector:
U.S. government, agencies and government-sponsored enterprises	$	6,000		10	%	$	5,642		9	%	$	5,483		9	%	$	5,214		9	%	$	4,810		8	%
Tax-exempt		362		1			356		1			353		1			317		—			295		—
Foreign government		2,106		3			2,035		3			2,132		3			2,153		4			2,146		4
U.S. corporate		27,200		44			26,956		43			26,847		43			26,060		43			25,035		43
Foreign corporate		15,132		24			15,637		25			15,749		25			15,141		25			15,071		26
Residential mortgage-backed securities		5,240		8			5,155		8			5,212		8			5,102		8			5,225		9
Commercial mortgage-backed securities		2,702		4			2,728		5			2,845		5			2,881		5			2,898		5
Other asset-backed securities		3,705		6			3,808		6			3,739		6			3,376		6			3,149		5

Total fixed maturity securities	$	62,447		100	%	$	62,317		100	%	$	62,360		100	%	$	60,244		100	%	$	58,629		100	%

Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	7,687		19	%	$	7,771		19	%	$	7,908		19	%	$	7,506		19	%	$	7,382		19	%
Utilities and energy		9,931		25			9,901		25			9,890		24			9,494		24			9,213		24
Consumer—non-cyclical		4,773		12			4,778		12			4,825		12			4,837		12			4,669		12
Consumer—cyclical		2,427		6			2,425		6			2,408		6			2,337		6			2,282		6
Capital goods		2,402		6			2,364		6			2,402		6			2,335		6			2,238		6
Industrial		2,906		7			2,948		7			2,885		7			2,734		7			2,595		7
Technology and communications		3,113		8			3,142		8			3,066		8			2,978		8			2,867		8
Transportation		1,687		4			1,729		4			1,702		4			1,653		4			1,595		4
Other		5,347		13			5,411		13			5,699		14			5,469		14			5,471		14

Subtotal		40,273		100	%		40,469		100	%		40,785		100	%		39,343		100	%		38,312		100	%

Non-Investment Grade:
Finance and insurance		465		23	%		483		23	%		306		17	%		332		18	%		337		19	%
Utilities and energy		339		17			389		18			338		19			335		18			297		16
Consumer—non-cyclical		229		11			211		10			217		12			229		12			194		11
Consumer—cyclical		83		4			64		3			55		3			60		3			71		4
Capital goods		232		11			291		14			297		16			291		15			295		16
Industrial		296		14			265		12			252		14			254		14			267		15
Technology and communications		336		16			358		17			318		17			330		18			316		18
Transportation		19		1			20		1			16		1			15		1			5		—
Other		60		3			43		2			12		1			12		1			12		1

Subtotal		2,059		100	%		2,124		100	%		1,811		100	%		1,858		100	%		1,794		100	%

Total	$	42,332		100	%	$	42,593		100	%	$	42,596		100	%	$	41,201		100	%	$	40,106		100	%

Fixed Maturity Securities—Contractual Maturity Dates:

Due in one year or less	$	2,326		4	%	$	2,640		4	%	$	2,784		4	%	$	3,118		5	%	$	2,974		5	%
Due after one year through five years		11,410		19			11,009		18			10,701		17			10,257		17			10,187		17
Due after five years through ten years		12,496		20			13,113		21			13,401		22			12,915		21			12,526		22
Due after ten years		24,568		39			23,864		38			23,678		38			22,595		38			21,670		37

Subtotal		50,800		82			50,626		81			50,564		81			48,885		81			47,357		81
Mortgage and asset-backed securities		11,647		18			11,691		19			11,796		19			11,359		19			11,272		19

Total fixed maturity securities	$	62,447		100	%	$	62,317		100	%	$	62,360		100	%	$	60,244		100	%	$	58,629		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Commercial Mortgage Loans Summary

(amounts in millions)


	December 31, 2014						September 30, 2014						June 30, 2014						March 31, 2014						December 31, 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	$	1,673			27	%	$	1,651			27	%	$	1,565			26	%	$	1,526			26	%	$	1,535			26	%
Pacific		1,636			27			1,646			27			1,607			27			1,601			27			1,590			27
Middle Atlantic		826			14			835			14			812			13			823			14			828			14
Mountain		536			9			531			9			514			9			494			8			478			8
East North Central		397			7			392			6			409			7			399			7			404			7
West North Central		382			6			374			6			366			6			370			6			377			6
West South Central		268			4			267			5			254			4			238			4			241			4
New England		264			4			265			4			350			6			335			6			337			6
East South Central		141			2			140			2			136			2			138			2			142			2

Subtotal		6,123			100	%		6,101			100	%		6,013			100	%		5,924			100	%		5,932			100	%

Allowance for losses		(22	)					(24	)					(27	)					(30	)					(33	)
Unamortized fees and costs		(1	)					—						—						—						—

Total	$	6,100					$	6,077					$	5,986					$	5,894					$	5,899

Property Type
Retail	$	2,150			35	%	$	2,147			35	%	$	2,162			36	%	$	2,103			36	%	$	2,073			35	%
Office		1,643			27			1,642			27			1,533			26			1,509			25			1,558			26
Industrial		1,597			26			1,606			26			1,585			26			1,580			27			1,581			27
Apartments		494			8			499			8			480			8			493			8			491			8
Mixed use/other		239			4			207			4			253			4			239			4			229			4

Subtotal		6,123			100	%		6,101			100	%		6,013			100	%		5,924			100	%		5,932			100	%

Allowance for losses		(22	)					(24	)					(27	)					(30	)					(33	)
Unamortized fees and costs		(1	)					—						—						—						—

Total	$	6,100					$	6,077					$	5,986					$	5,894					$	5,899

Allowance for Losses on Commercial Mortgage Loans
Beginning balance	$	24					$	27					$	30					$	33					$	36
Release		(2	)					(3	)					(3	)					(3	)					(3	)

Ending balance	$	22					$	24					$	27					$	30					$	33

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

Commercial Mortgage Loans Summary

(amounts in millions)


	December 31, 2014					September 30, 2014					June 30, 2014					March 31, 2014					December 31, 2013
Loan Size	Principal Balance		% of Total			Principal Balance		% of Total			Principal Balance		% of Total			Principal Balance		% of Total			Principal Balance		% of Total
Under $5 million	$	2,411		40	%	$	2,445		40	%	$	2,415		40	%	$	2,405		41	%	$	2,435		41	%
$5 million but less than $10 million		1,729		28			1,704		28			1,687		28			1,645		28			1,638		28
$10 million but less than $20 million		1,490		24			1,498		25			1,380		23			1,376		23			1,358		23
$20 million but less than $30 million		254		4			256		4			232		4			204		3			205		3
$30 million and over		239		4			198		3			299		5			294		5			296		5

Total	$	6,123		100	%	$	6,101		100	%	$	6,013		100	%	$	5,924		100	%	$	5,932		100	%

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

(loan amounts in millions)


Loan Year	Total Recorded Investment⁽¹⁾		Number of Loans		Average Balance Per Loan		Loan-To-Value⁽²⁾			Delinquent Principal Balance		Number of Delinquent Loans		Average Balance Per Delinquent Loan
2004 and prior	$	722		393	$	2		37	%	$	—		—	$	—
2005		875		225	$	4		53	%		—		—	$	—
2006		802		215	$	4		59	%		2		1	$	2
2007		664		148	$	4		68	%		—		—	$	—
2008		230		51	$	5		63	%		6		1	$	6
2009		—		—	$	—		—	%		—		—	$	—
2010		115		54	$	2		44	%		—		—	$	—
2011		264		53	$	5		56	%		—		—	$	—
2012		647		94	$	7		60	%		—		—	$	—
2013		845		138	$	6		64	%		—		—	$	—
2014		959		150	$	—		69	%		—		—	$	—

Total	$	6,123		1,521	$	4		59	%	$	8		2	$	4

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

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014

General Account GAAP Net Investment Income Yields

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
GAAP Net Investment Income
Fixed maturity securities—taxable	$	666		$	651		$	666		$	648		$	2,631		$	663		$	651		$	672		$	656		$	2,642
Fixed maturity securities—non-taxable		3			3			3			3			12			2			3			2			2			9
Commercial mortgage loans		87			82			81			83			333			91			81			81			82			335
Restricted commercial mortgage loans related to securitization entities		3			3			4			4			14			1			8			7			7			23
Equity securities		3			3			4			4			14			4			3			6			4			17
Other invested assets		37			36			26			39			138			33			33			33			46			145
Limited partnerships		2			10			13			11			36			24			8			6			2			40
Restricted other invested assets related to securitization entities		2			1			1			1			5			4			—			—			—			4
Policy loans		34			32			32			31			129			32			33			32			32			129
Cash, cash equivalents and short-term investments		5			7			7			5			24			4			4			5			7			20

Gross investment income before expenses and fees		842			828			837			829			3,336			858			824			844			838			3,364
Expenses and fees		(23	)		(23	)		(24	)		(24	)		(94	)		(23	)		(23	)		(23	)		(24	)		(93	)

Net investment income	$	819		$	805		$	813		$	805		$	3,242		$	835		$	801		$	821		$	814		$	3,271

Annualized Yields
Fixed maturity securities—taxable		4.7	%		4.6	%		4.7	%		4.6	%		4.6	%		4.7	%		4.7	%		4.9	%		4.7	%		4.8	%
Fixed maturity securities—non-taxable		3.5	%		3.4	%		3.5	%		3.7	%		3.5	%		2.6	%		4.2	%		2.9	%		2.7	%		3.1	%
Commercial mortgage loans		5.7	%		5.4	%		5.5	%		5.6	%		5.6	%		6.2	%		5.5	%		5.5	%		5.6	%		5.7	%
Restricted commercial mortgage loans related to securitization entities		5.8	%		6.6	%		6.7	%		7.0	%		6.6	%		1.5	%		10.5	%		8.6	%		8.4	%		7.6	%
Equity securities		4.5	%		4.2	%		5.3	%		5.1	%		4.8	%		4.7	%		3.2	%		5.7	%		3.4	%		4.2	%
Other invested assets		62.4	%		58.6	%		40.5	%		56.9	%		54.6	%		44.9	%		42.1	%		29.4	%		28.3	%		32.8	%
Limited partnerships⁽¹⁾		3.1	%		15.3	%		19.6	%		16.1	%		13.6	%		33.2	%		10.4	%		7.5	%		2.4	%		12.8	%
Restricted other invested assets related to securitization entities		2.1	%		1.0	%		1.0	%		1.0	%		1.3	%		4.2	%		—	%		—	%		—	%		1.1	%
Policy loans		9.0	%		8.5	%		8.7	%		8.6	%		8.7	%		8.3	%		7.9	%		7.8	%		8.0	%		8.1	%
Cash, cash equivalents and short-term investments		0.5	%		0.7	%		0.6	%		0.4	%		0.5	%		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	%		4.7	%		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	%		-0.1	%

Net investment income		4.6	%		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

FOURTH QUARTER 2014

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

(amounts in millions)


	2014															2013
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net realized gains (losses) on available-for-sale securities:
Fixed maturity securities:
U.S. corporate	$	1		$	5		$	(6	)	$	(9	)	$	(9	)	$	(5	)	$	1		$	22		$	4		$	22
U.S. government, agencies and government-sponsored enterprises		1			—			2			—			3			5			2			1			—			8
Foreign corporate		1			2			13			(2	)		14			1			—			8			1			10
Foreign government		1			—			—			—			1			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		1			2			6			1			10			5			6			8			3			22
Foreign exchange		—			—			1			—			1			—			—			—			—			—

Total net realized gains (losses) on available-for-sale securities		5			8			16			(11	)		18			—			(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		10			3			5			8			26			(5	)		(5	)		(11	)		6			(15	)
Derivative instruments		(24	)		(25	)		(4	)		(14	)		(67	)		9			(12	)		(2	)		(27	)		(32	)
Limited partnerships		—			—			(1	)		—			(1	)		—			(2	)		—			—			(2	)
Commercial mortgage loans held-for-sale market valuation allowance		2			2			2			2			8			(1	)		2			1			1			3
Contingent purchase price valuation change		—			(1	)		—			—			(1	)		—			—			(1	)		1			—
Net gains (losses) related to securitization entities		1			(1	)		6			4			10			17			13			9			6			45
Other		—			—			—			—			—			—			—			—			(1	)		(1	)

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

Net investment gains (losses), net	$	(4	)	$	(10	)	$	20		$	(10	)	$	(4	)	$	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

FOURTH QUARTER 2014

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	(1,244	)	$	(276	)	$	676		$	641		$	560
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,532		$	11,770		$	11,833		$	11,699		$	11,550
GAAP Basis ROE^(1)/(2)		-10.8	%		-2.3	%		5.7	%		5.5	%		4.8	%

Operating ROE
Net operating income for the twelve months ended⁽¹⁾	$	(381	)	$	228		$	684		$	659		$	616
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	11,532		$	11,770		$	11,833		$	11,699		$	11,550
Operating ROE^(1)/(2)		-3.3	%		1.9	%		5.8	%		5.6	%		5.3	%

Quarterly Average ROE	Three months ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	(760	)	$	(844	)	$	176		$	184		$	208
Average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	10,854		$	11,651		$	12,051		$	11,942		$	11,758
Annualized GAAP Quarterly Basis ROE^(3)/(4)		-28.0	%		-29.0	%		5.8	%		6.2	%		7.1	%

Operating ROE
Net operating income (loss) for the period ended⁽³⁾	$	(416	)	$	(317	)	$	158		$	194		$	193
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	10,854		$	11,651		$	12,051		$	11,942		$	11,758
Annualized Operating Quarterly Basis ROE^(3)/(4)		-15.3	%		-10.9	%		5.2	%		6.5	%		6.6	%

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

FOURTH QUARTER 2014

Reconciliation of Core Yield


		2014															2013
	(Assets—amounts in billions)	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	78.2		$	76.6		$	76.9		$	74.8		$	78.2		$	72.8		$	73.1		$	72.2		$	76.5		$	72.8
	Subtract:
	Securities lending		0.3			0.3			0.3			0.3			0.3			0.2			0.2			0.2			0.2			0.2
	Unrealized gains (losses)		6.7			5.4			5.6			4.3			6.7			2.8			3.3			3.7			6.7			2.8
	Derivative counterparty collateral		—			0.5			0.4			0.4			—			0.2			0.3			0.4			0.6			0.2

	Adjusted end of period invested assets and cash	$	71.2		$	70.4		$	70.6		$	69.8		$	71.2		$	69.6		$	69.3		$	67.9		$	69.0		$	69.6

(A)	Average Invested Assets and Cash Used in Reported Yield Calculation	$	70.8		$	70.5		$	70.2		$	69.7		$	70.3		$	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			0.2			0.3			0.3			0.2			0.3			0.3

(B)	Average Invested Assets and Cash Used in Core Yield Calculation		70.6			70.3			70.0			69.5			70.1			69.2			68.3			68.3			69.1			68.7
	Subtract:
	Portfolios supporting floating products and non-recourse funding obligations⁽²⁾		3.9			4.0			4.2			4.3			4.1			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	$	66.7		$	66.3		$	65.8		$	65.2		$	66.0		$	64.8		$	63.7		$	63.1		$	63.4		$	63.7

	(Income—amounts in millions)
(D)	Reported—Net Investment Income	$	819		$	805		$	813		$	805		$	3,242		$	835		$	801		$	821		$	814		$	3,271
	Subtract:
	Bond calls and commercial mortgage loan prepayments		18			17			7			10			52			8			15			14			10			47
	Reinsurance⁽³⁾		14			19			13			22			68			20			17			21			22			80
	Other non-core items⁽⁴⁾		12			(18	)		12			5			11			17			4			19			2			42
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		2			3			3			3			11			3			4			4			4			15

(E)	Core Net Investment Income		773			784			778			765			3,100			787			761			763			776			3,087
	Subtract:
	Investment income from portfolios supporting floating products and non-recourse funding obligations⁽²⁾		21			22			23			21			87			27			24			25			25			101

(F)	Core Net Investment Income (excl. Floating and Non-Recourse Funding)	$	752		$	762		$	755		$	744		$	3,013		$	760		$	737		$	738		$	751		$	2,986


(D) / (A)	Reported Yield		4.63	%		4.57	%		4.63	%		4.62	%		4.61	%		4.81	%		4.67	%		4.79	%		4.69	%		4.74	%
(E) / (B)	Core Yield		4.38	%		4.46	%		4.45	%		4.40	%		4.42	%		4.55	%		4.46	%		4.47	%		4.49	%		4.49	%
(F) / (C)	Core Yield (excl. Floating and Non-Recourse Funding)		4.51	%		4.60	%		4.59	%		4.56	%		4.57	%		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

FOURTH QUARTER 2014

Financial Strength Ratings

As of February 10, 2015, 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	BBB+	A3	A
Genworth Life and Annuity Insurance Company	BBB+	A3	A
Genworth Life Insurance Company of New York	BBB+	A3	A

As of February 10, 2015, 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)	A+	A3
Genworth Financial Mortgage Insurance Limited (Europe)	BB+	Not rated
Genworth Financial Mortgage Insurance Company Canada⁽¹⁾	A+	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.

As of February 10, 2015, 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

FOURTH QUARTER 2014

Financial Strength Ratings (continued)

S&P states that an insurer rated “A” (Strong) has strong financial security characteristics that outweigh any vulnerabilities, and is highly likely to have the ability to meet financial commitments. Insurers rated “A” (Strong), “BBB” (Good), or “BB” (Marginal) have strong, good, or marginal financial security characteristics, respectively. The “A”, “BBB” and “BB” ranges are the 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 “A+”, “A-”, “BBB+”, “BB+” and “BB-” ratings are the fifth-, seventh-, eigth-, eleventh- 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