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

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8-K - 8-K - GENWORTH FINANCIAL INC	d118730d8k.htm
EX-99.1 - EX-99.1 - GENWORTH FINANCIAL INC	d118730dex991.htm

EXHIBIT 99.2

LOGO

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015


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

*Consolidated Quarterly 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 by Business*
Net Operating Income (Loss) and Sales—U.S. Mortgage Insurance Segment		16-22
Net Operating Income and Sales—Canada Mortgage Insurance Segment		24-27
Net Operating Income and Sales—Australia Mortgage Insurance Segment		29-32
Net Operating Income (Loss) and Sales—U.S. Life Insurance Segment		34-37
Net Operating Income (Loss)—Runoff Segment		39
Net Operating Loss and Other Metrics—Corporate and Other Activities		41

*Additional Financial Data*
Investments Summary		43
Fixed Maturity Securities Summary		44
General Account GAAP Net Investment Income Yields		45
Net Investment Gains (Losses), Net—Detail		46

*Reconciliations of Non-GAAP Measures*
Reconciliation of Operating Return On Equity (ROE)		48
Reconciliation of Core Yield		49

*Corporate Information*
Industry Ratings		51

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 2015

Dear Investor,

In the fourth quarter of 2015, the company changed how it reviews its operating businesses and no longer has separate reporting divisions. Under the new structure, the company has the following five operating business segments: U.S. Mortgage Insurance; Canada Mortgage Insurance; Australia Mortgage Insurance; U.S Life Insurance (which includes its long-term care insurance, life insurance and fixed annuities businesses); and Runoff (which includes the results of non-strategic products which are no longer actively sold). In addition to the five operating business segments, the company also has Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of the operating segments, including certain smaller international mortgage insurance businesses and discontinued operations. Financial information has been updated for all periods to reflect the reorganized segment reporting structure.

Beginning in the fourth quarter of 2015, the mortgage insurance business in Europe is being separately presented as held for sale and its balance sheet for all prior periods herein has been re-presented. During 2015, the company recognized an after-tax loss of $141 million, including $134 million recorded in the fourth quarter of 2015, related to the planned sale of this business. The company expects the transaction to close in the first quarter of 2016, subject to customary closing conditions, including requisite regulatory approvals.

On December 31, 2015, the company early adopted new accounting guidance issued by the Financial Accounting Standards Board related to the presentation of debt issuance costs on the balance sheet. All prior periods in this financial supplement have been re-presented to reflect the retrospective impacts of this accounting change.

Thank you for your continued interest in Genworth Financial.

Regards,

Amy Corbin

Investor Relations

InvestorInfo@genworth.com

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

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, restructuring costs 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, gains (losses) on insurance block transactions and restructuring costs are also excluded from net operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual 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.

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.

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 company recognized an estimated loss of $134 million, net of taxes, in the fourth quarter of 2015 for the planned sale of the mortgage insurance business in Europe, as well as a tax charge of $7 million in the third quarter of 2015 from potential business portfolio changes related to this business resulting in a total estimated loss on sale of $141 million in 2015.

In the third quarter of 2015, the company paid an early redemption payment of approximately $1 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth Financial Mortgage Insurance Pty Limited’s notes that were scheduled to mature in 2021. In the third quarter of 2015, the company also repurchased approximately $50 million principal amount of Genworth Holdings, Inc.’s notes with various maturity dates for a loss of $1 million, net of taxes. 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. These transactions were excluded from net operating income (loss) for the periods presented as they related to a loss on the early extinguishment of debt.

In the third quarter of 2015, the company recorded a DAC impairment of $296 million, net of taxes, on certain term life insurance policies in connection with entering into an agreement to complete a life block transaction.

In the fourth and second quarters of 2015, the company recorded an after-tax expense of $3 million and $2 million, respectively, related to restructuring costs as part of an expense reduction plan as the company evaluates and appropriately sizes its organizational needs and expenses.

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 $205 million net tax impact in the fourth quarter of 2014 from potential business portfolio changes. 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 made a change to the permanent reinvestment assertion on one of its legal entities recognizing tax expense of $31 million in the fourth quarter of 2014.

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 48 and 49 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 46).

⁽¹⁾	U.S. Generally Accepted Accounting Principles

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Results of Operations and Selected Operating Performance Measures

The company’s chief operating decision maker evaluates segment performance and allocates resources on the basis of net operating income (loss). 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.

In the first quarter of 2015, the company revised how it allocates the consolidated provision for income taxes to its operating segments to simplify the process and reflect how the chief operating decision maker is evaluating segment performance. The revised methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. Previously, the company calculated a unique income tax provision for each segment based on quarterly changes to tax attributes and implications of transactions specific to each product within the segment.

The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year. Prior year amounts have not been re-presented to reflect this revised presentation and are, therefore, not comparable to the current year provision for income taxes by segment. However, the company does not believe that the previous methodology would have resulted in a materially different segment-level provision for income taxes.

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) new insurance written for mortgage insurance; (2) annualized first-year premiums for long-term care and term life insurance products; (3) annualized first-year deposits plus 5% of excess deposits for universal and term universal life insurance products; (4) 10% of premium deposits for linked-benefits products; and (5) new and additional premiums/deposits for fixed annuities. Sales do not include renewal premiums on policies or contracts written during prior periods. The company considers new insurance written, annualized first-year premiums/deposits, premium equivalents and new premiums/deposits 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 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 mortgage insurance businesses, 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. 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. 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. In Australia, the company has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. 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.

Management also regularly monitors and reports a loss ratio for the company’s businesses. For the mortgage insurance businesses, the loss ratio is the ratio of incurred losses and loss adjustment expenses to net earned premiums. 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. 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 2015

Financial Highlights

(amounts in millions, except per share data)


Balance Sheet Data	December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014
Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income	$	9,814	$	10,101	$	10,381	$	10,632	$	10,477
Total accumulated other comprehensive income		3,010		3,478		3,309		4,692		4,446

Total Genworth Financial, Inc.’s stockholders’ equity	$	12,824	$	13,579	$	13,690	$	15,324	$	14,923

Book value per common share	$	25.76	$	27.29	$	27.52	$	30.81	$	30.04
Book value per common share, excluding accumulated other comprehensive income	$	19.71	$	20.30	$	20.87	$	21.38	$	21.09
Common shares outstanding as of the balance sheet date		497.8		497.5		497.4		497.4		496.7

	Twelve months ended
Twelve Month Rolling Average ROE	December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014
GAAP Basis ROE		-6.0%		-10.3%		-15.0%		-11.3%		-10.8%
Operating ROE⁽¹⁾		2.5%		-0.7%		-4.2%		-3.8%		-3.5%

	Three months ended
Quarterly Average ROE	December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014
GAAP Basis ROE		-11.7%		-11.1%		-7.3%		5.8%		-28.0%
Operating ROE⁽¹⁾		-3.3%		2.5%		4.5%		5.8%		-15.3%


Basic and Diluted Shares	Three months ended December 31, 2015		Twelve months ended December 31, 2015
Weighted-average common shares used in basic earnings per common share calculations		497.6		497.4
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⁾		497.6		497.4

⁽¹⁾	See page 48 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 loss from continuing operations for the three and twelve months ended December 31, 2015, 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, 2015, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.4 million and 1.6 million, respectively, would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three and twelve months ended December 31, 2015, dilutive potential weighted-average common shares outstanding would have been 499.0 million.

Consolidated Quarterly Results

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Consolidated Net Income (Loss) by Quarter

(amounts in millions, except per share amounts)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q		1Q			Total
REVENUES:
Premiums	$	1,157		$	1,145		$	1,134		$	1,143		$	4,579		$	1,214		$	1,210		$	1,144	$	1,132		$	4,700
Net investment income		781			783			793			781			3,138			797			778			791		776			3,142
Net investment gains (losses)		(16	)		(51	)		8			(16	)		(75	)		(11	)		(27	)		34		(18	)		(22	)
Policy fees and other income		234			223			222			227			906			229			229			225		226			909

Total revenues		2,156			2,100			2,157			2,135			8,548			2,229			2,190			2,194		2,116			8,729

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,435			1,290			1,232			1,192			5,149			2,136			1,934			1,200		1,148			6,418
Interest credited		180			179			181			180			720			185			185			184		183			737
Acquisition and operating expenses, net of deferrals		433			314			295			267			1,309			299			284			282		273			1,138
Amortization of deferred acquisition costs and intangibles		207			563			101			95			966			128			113			108		104			453
Goodwill impairment		—			—			—			—			—			299			550			—		—			849
Interest expense		104			105			103			107			419			106			104			112		111			433

Total benefits and expenses		2,359			2,451			1,912			1,841			8,563			3,153			3,170			1,886		1,819			10,028

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(203	)		(351	)		245			294			(15	)		(924	)		(980	)		308		297			(1,299	)
Provision (benefit) for income taxes		(36	)		(134	)		70			91			(9	)		(78	)		(187	)		84		87			(94	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(167	)		(217	)		175			203			(6	)		(846	)		(793	)		224		210			(1,205	)
Income (loss) from discontinued operations, net of taxes⁽¹⁾		(73	)		(21	)		(314	)		1			(407	)		138			6			4		9			157

NET INCOME (LOSS)		(240	)		(238	)		(139	)		204			(413	)		(708	)		(787	)		228		219			(1,048	)
Less: net income attributable to noncontrolling interests		52			46			54			50			202			52			57			52		35			196

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	(292	)	$	(284	)	$	(193	)	$	154		$	(615	)	$	(760	)	$	(844	)	$	176	$	184		$	(1,244	)


Earnings (Loss) Per Share Data:
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(0.44	)	$	(0.53	)	$	0.24		$	0.31		$	(0.42	)	$	(1.81	)	$	(1.71	)	$	0.35	$	0.35		$	(2.82	)
Diluted	$	(0.44	)	$	(0.53	)	$	0.24		$	0.31		$	(0.42	)	$	(1.81	)	$	(1.71	)	$	0.34	$	0.35		$	(2.82	)
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)	$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)
Diluted	$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)	$	(1.53	)	$	(1.70	)	$	0.35	$	0.37		$	(2.51	)
Weighted-average common shares outstanding
Basic		497.6			497.4			497.4			497.0			497.4			496.7			496.6			496.6		495.8			496.4
Diluted⁽²⁾		497.6			497.4			499.3			498.9			497.4			496.7			496.6			503.6		502.7			496.4

⁽¹⁾	Income (loss) from discontinued operations related to the lifestyle protection business that was sold on December 1, 2015.

⁽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, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.4 million, 1.3 million, 3.2 million and 5.4 million, respectively, for the three months ended December 31, 2015, September 30, 2015, December 31, 2014 and September 30, 2014 and 1.6 million and 5.6 million, respectively, for the twelve months ended December 31, 2015 and 2014 would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations in these periods, dilutive potential weighted-average common shares outstanding would have been 499.0 million, 498.7 million, 499.9 million and 502.0 million, respectively, for the three months ended December 31, 2015, September 30, 2015, December 31, 2014 and September 30, 2014 and 499.0 million and 502.0 million, respectively, for the twelve months ended December 31, 2015 and 2014.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Net Operating Income (Loss) by Segment by Quarter

(amounts in millions, except per share amounts)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
U.S. Mortgage Insurance segment	$	41		$	37		$	49		$	52		$	179		$	21		$	(2	)	$	39		$	33		$	91
Canada Mortgage Insurance segment		37			38			37			40			152			36			46			47			41			170
Australia Mortgage Insurance segment		22			21			29			30			102			33			48			57			62			200
U.S. Life Insurance segment:
Long-Term Care Insurance		19			(10	)		10			10			29			(506	)		(361	)		6			46			(815	)
Life Insurance		(173	)		31			22			40			(80	)		1			13			39			21			74
Fixed Annuities		19			19			25			31			94			23			26			24			27			100

Total U.S. Life Insurance segment		(135	)		40			57			81			43			(482	)		(322	)		69			94			(641	)

Runoff segment		11			(4	)		9			11			27			16			5			15			12			48
Corporate and Other		(58	)		(68	)		(62	)		(60	)		(248	)		(39	)		(98	)		(73	)		(56	)		(266	)

NET OPERATING INCOME (LOSS)		(82	)		64			119			154			255			(415	)		(323	)		154			186			(398	)
ADJUSTMENTS TO NET OPERATING INCOME (LOSS):
Net investment gains (losses), net		—			(22	)		4			(1	)		(19	)		(4	)		(10	)		20			(11	)		(5	)
Goodwill impairment, net		—			—			—			—			—			(274	)		(517	)		—			—			(791	)
Gains (losses) on sale of business, net		(134	)		(7	)		—			—			(141	)		—			—			—			—			—
Gains (losses) on early extinguishment of debt, net		—			(2	)		—			—			(2	)		—			—			(2	)		—			(2	)
Gains (losses) from life block transactions, net		—			(296	)		—			—			(296	)		—			—			—			—			—
Expenses related to restructuring, net		(3	)		—			(2	)		—			(5	)		—			—			—			—			—
Tax impact from potential business portfolio changes		—			—			—			—			—			(205	)		—			—			—			(205	)

INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL INC.’S COMMON STOCKHOLDERS		(219	)		(263	)		121			153			(208	)		(898	)		(850	)		172			175			(1,401	)
Net income attributable to noncontrolling interests		52			46			54			50			202			52			57			52			35			196

INCOME (LOSS) FROM CONTINUING OPERATIONS		(167	)		(217	)		175			203			(6	)		(846	)		(793	)		224			210			(1,205	)
Income (loss) from discontinued operations, net of taxes		(73	)		(21	)		(314	)		1			(407	)		138			6			4			9			157

NET INCOME (LOSS)		(240	)		(238	)		(139	)		204			(413	)		(708	)		(787	)		228			219			(1,048	)
Less: net income attributable to noncontrolling interests		52			46			54			50			202			52			57			52			35			196

NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS	$	(292	)	$	(284	)	$	(193	)	$	154		$	(615	)	$	(760	)	$	(844	)	$	176		$	184		$	(1,244	)


Earnings (Loss) Per Share Data:
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share
Basic	$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)	$	(1.53	)	$	(1.70	)	$	0.35		$	0.37		$	(2.51	)
Diluted	$	(0.59	)	$	(0.57	)	$	(0.39	)	$	0.31		$	(1.24	)	$	(1.53	)	$	(1.70	)	$	0.35		$	0.37		$	(2.51	)
Net operating income (loss) per common share
Basic	$	(0.17	)	$	0.13		$	0.24		$	0.31		$	0.51		$	(0.83	)	$	(0.65	)	$	0.31		$	0.37		$	(0.80	)
Diluted	$	(0.17	)	$	0.13		$	0.24		$	0.31		$	0.51		$	(0.83	)	$	(0.65	)	$	0.31		$	0.37		$	(0.80	)
Weighted-average common shares outstanding
Basic		497.6			497.4			497.4			497.0			497.4			496.7			496.6			496.6			495.8			496.4
Diluted⁽¹⁾		497.6			497.4			499.3			498.9			497.4			496.7			496.6			503.6			502.7			496.4

⁽¹⁾

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, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.4 million, 1.3 million, 3.2 million and 5.4 million, respectively, for the three months ended December 31, 2015, September 30, 2015, December 31, 2014 and September 30, 2014 and 1.6 million and 5.6 million, respectively, for the twelve months ended December 31, 2015 and 2014 would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations in these periods, dilutive potential weighted-average common shares outstanding would have been 499.0 million, 498.7 million, 499.9 million and 502.0 million, respectively, for the three months ended December 31, 2015, September 30, 2015, December 31, 2014 and September 30, 2014 and 499.0 million and 502.0 million, respectively, for the twelve months ended December 31, 2015 and 2014. Since it had net operating income for the three months ended September 30, 2015 and the twelve months ended December 31, 2015, the company used 498.7 million and 499.0 million, respectively, diluted weighted-average common shares outstanding in the calculation of diluted net operating income per common share.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Consolidated Balance Sheets

(amounts in millions)


	December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value	$	58,197	$	60,646	$	60,368	$	61,732	$	61,077
Equity securities available-for-sale, at fair value		310		273		299		299		275
Commercial mortgage loans		6,170		6,133		6,175		6,149		6,100
Restricted commercial mortgage loans related to securitization entities		161		175		181		188		201
Policy loans		1,568		1,567		1,584		1,506		1,501
Other invested assets		2,309		2,764		2,176		2,667		2,208
Restricted other invested assets related to securitization entities		413		412		410		411		411

Total investments		69,128		71,970		71,193		72,952		71,773
Cash and cash equivalents		5,965		3,635		4,069		4,937		4,645
Accrued investment income		653		682		612		713		660
Deferred acquisition costs		4,398		4,441		4,899		4,748		4,852
Intangible assets and goodwill		357		297		300		221		265
Reinsurance recoverable		17,245		17,255		17,276		17,285		17,291
Other assets		520		523		580		473		479
Deferred tax asset		155		—		—		—		—
Separate account assets		7,883		7,893		8,702		9,064		9,208
Assets held for sale⁽¹⁾		127		1,484		1,493		1,897		2,143

Total assets	$	106,431	$	108,180	$	109,124	$	112,290	$	111,316

⁽¹⁾

The assets held for sale related to the lifestyle protection insurance business (prior to its sale on December 1, 2015) and the European mortgage insurance business (prior to its sale) have been segregated in the consolidated balance sheets. The major asset categories for assets held for sale were as follows:


	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015		December 31, 2014
ASSETS	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015		December 31, 2014
Investments:
Fixed maturity securities available-for-sale, at fair value	$	195		$	1,322		$	1,304		$	1,210	$	1,370
Equity securities available-for-sale, at fair value		—			6			7			7		7
Other invested assets		6			32			39			56		88

Total investments		201			1,360			1,350			1,273		1,465
Cash and cash equivalents		28			173			185			221		273
Accrued investment income		3			25			23			22		25
Deferred acquisition costs		—			168			176			173		193
Intangible assets		—			23			22			21		23
Reinsurance recoverable		21			57			56			54		55
Other assets		14			129			139			133		109

Assets held for sale		267			1,935			1,951			1,897		2,143
Fair value less pension settlement costs and closing costs impairment		(140	)		(451	)		(458	)		—		—

Total assets held for sale	$	127		$	1,484		$	1,493		$	1,897	$	2,143

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Consolidated Balance Sheets

(amounts in millions)


	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	36,475		$	36,472		$	36,298		$	36,488		$	35,915
Policyholder account balances		26,209			26,000			25,987			26,136			26,032
Liability for policy and contract claims		8,095			8,009			7,936			7,877			7,881
Unearned premiums		3,308			3,281			3,373			3,266			3,485
Other liabilities		3,004			3,225			3,125			3,613			3,234
Borrowings related to securitization entities		179			188			199			205			219
Non-recourse funding obligations		1,920			1,937			1,953			1,968			1,981
Long-term borrowings		4,570			4,573			4,581			4,575			4,612
Deferred tax liability		24			200			258			1,056			858
Separate account liabilities		7,883			7,893			8,702			9,064			9,208
Liabilities held for sale⁽¹⁾		127			986			985			961			1,094

Total liabilities		91,794			92,764			93,397			95,209			94,519

Equity:
Common stock		1			1			1			1			1
Additional paid-in capital		11,949			11,944			11,940			11,998			11,997

Accumulated other comprehensive income (loss):
Net unrealized investment gains (losses):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		1,236			1,709			1,606			2,724			2,431
Net unrealized gains (losses) on other-than-temporarily impaired securities		18			22			22			24			22

Net unrealized investment gains (losses)		1,254			1,731			1,628			2,748			2,453

Derivatives qualifying as hedges		2,045			2,130			1,913			2,247			2,070
Foreign currency translation and other adjustments		(289	)		(383	)		(232	)		(303	)		(77	)

Total accumulated other comprehensive income		3,010			3,478			3,309			4,692			4,446
Retained earnings		564			856			1,140			1,333			1,179
Treasury stock, at cost		(2,700	)		(2,700	)		(2,700	)		(2,700	)		(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		12,824			13,579			13,690			15,324			14,923
Noncontrolling interests		1,813			1,837			2,037			1,757			1,874

Total equity		14,637			15,416			15,727			17,081			16,797

Total liabilities and equity	$	106,431		$	108,180		$	109,124		$	112,290		$	111,316

⁽¹⁾

The liabilities held for sale related to the lifestyle protection insurance business (prior to its sale on December 1, 2015) and the European mortgage insurance business (prior to its sale) have been segregated in the consolidated balance sheets. The major liability categories for liabilities held for sale were as follows:


	December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014
LIABILITIES
Policyholder account balances	$	—	$	9	$	10	$	10	$	11
Liability for policy and contract claims		56		164		162		153		162
Unearned premiums		58		471		478		465		501
Other liabilities		12		312		305		286		370
Deferred tax liability		1		30		30		47		50

Liabilities held for sale	$	127	$	986	$	985	$	961	$	1,094

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Consolidated Balance Sheet by Segment

(amounts in millions)


	December 31, 2015
	U.S. Mortgage Insurance		Canada Mortgage Insurance			Australia Mortgage Insurance		U.S. Life Insurance			Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	2,227	$	4,295		$	2,886	$	60,788		$	2,862		$	2,688		$	75,746
Deferred acquisition costs and intangible assets		32		123			56		4,251			285			8			4,755
Reinsurance recoverable		6		—			—		16,415			824			—			17,245
Deferred tax and other assets		634		102			45		(1,924	)		261			1,557			675
Separate account assets		—		—			—		—			7,883			—			7,883
Assets held for sale		—		—			—		—			—			127			127

Total assets	$	2,899	$	4,520		$	2,987	$	79,530		$	12,115		$	4,380		$	106,431

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—	$	—		$	—	$	36,471		$	4		$	—		$	36,475
Policyholder account balances		—		—			—		23,009			3,200			—			26,209
Liability for policy and contract claims		849		87			165		6,969			18			7			8,095
Unearned premiums		258		1,460			963		621			6			—			3,308
Non-recourse funding obligations		—		—			—		1,950			—			(30	)		1,920
Deferred tax and other liabilities		89		170			152		659			290			1,668			3,028
Borrowings and capital securities		—		313			178		—			10			4,248			4,749
Separate account liabilities		—		—			—		—			7,883			—			7,883
Liabilities held for sale		—		—			—		—			—			127			127

Total liabilities		1,196		2,030			1,458		69,679			11,411			6,020			91,794

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		1,701		1,637			662		6,646			725			(1,557	)		9,814
Allocated accumulated other comprehensive income (loss)		2		(194	)		101		3,205			(21	)		(83	)		3,010

Total Genworth Financial, Inc.’s stockholders’ equity		1,703		1,443			763		9,851			704			(1,640	)		12,824
Noncontrolling interests		—		1,047			766		—			—			—			1,813

Total equity		1,703		2,490			1,529		9,851			704			(1,640	)		14,637

Total liabilities and equity	$	2,899	$	4,520		$	2,987	$	79,530		$	12,115		$	4,380		$	106,431

⁽¹⁾	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Consolidated Balance Sheet by Segment

(amounts in millions)


	September 30, 2015
	U.S. Mortgage Insurance			Canada Mortgage Insurance			Australia Mortgage Insurance		U.S. Life Insurance		Runoff			Corporate and Other⁽¹⁾			Total
ASSETS
Cash and investments	$	2,209		$	4,306		$	2,893	$	61,322	$	2,742		$	2,815		$	76,287
Deferred acquisition costs and intangible assets		29			125			42		4,254		280			8			4,738
Reinsurance recoverable		6			—			—		16,420		829			—			17,255
Other assets		38			56			10		335		18			66			523
Separate account assets		—			—			—		—		7,893			—			7,893
Assets held for sale		—			—			—		—		—			1,484			1,484

Total assets	$	2,282		$	4,487		$	2,945	$	82,331	$	11,762		$	4,373		$	108,180

LIABILITIES AND EQUITY
Liabilities:
Future policy benefits	$	—		$	—		$	—	$	36,468	$	4		$	—		$	36,472
Policyholder account balances		—			—			—		22,786		3,214			—			26,000
Liability for policy and contract claims		953			83			156		6,791		18			8			8,009
Unearned premiums		240			1,467			956		613		5			—			3,281
Non-recourse funding obligations		—			—			—		1,967		—			(30	)		1,937
Deferred tax and other liabilities		(565	)		82			129		3,512		(1	)		268			3,425
Borrowings and capital securities		—			324			171		—		11			4,255			4,761
Separate account liabilities		—			—			—		—		7,893			—			7,893
Liabilities held for sale		—			—			—		—		—			986			986

Total liabilities		628			1,956			1,412		72,137		11,144			5,487			92,764

Equity:
Allocated equity, excluding accumulated other comprehensive income (loss)		1,642			1,616			700		6,485		634			(976	)		10,101
Allocated accumulated other comprehensive income (loss)		12			(151	)		62		3,709		(16	)		(138	)		3,478

Total Genworth Financial, Inc.’s stockholders’ equity		1,654			1,465			762		10,194		618			(1,114	)		13,579
Noncontrolling interests		—			1,066			771		—		—			—			1,837

Total equity		1,654			2,531			1,533		10,194		618			(1,114	)		15,416

Total liabilities and equity	$	2,282		$	4,487		$	2,945	$	82,331	$	11,762		$	4,373		$	108,180

⁽¹⁾	Includes inter-segment eliminations and other businesses that are managed outside the operating segments.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Deferred Acquisition Costs Rollforward

(amounts in millions)


	U.S. Mortgage Insurance			Canada Mortgage Insurance			Australia Mortgage Insurance			U.S. Life Insurance⁽¹⁾			Runoff⁽²⁾			Corporate and Other		Total
Unamortized balance as of September 30, 2015	$	21		$	109		$	35		$	4,253		$	269		$	—	$	4,687
Costs deferred		3			12			3			49			—			—		67
Amortization, net of interest accretion		(2	)		(9	)		(4	)		(170	)		3			—		(182	)
Impact of foreign currency translation		—			(4	)		1			—			—			—		(3	)

Unamortized balance as of December 31, 2015		22			108			35			4,132			272			—		4,569
Effect of accumulated net unrealized investment (gains) losses		—			—			—			(169	)		(2	)		—		(171	)

Balance as of December 31, 2015	$	22		$	108		$	35		$	3,963		$	270		$	—	$	4,398

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

⁽²⁾	Amortization, net of interest accretion, included $8 million of amortization related to net investment gains for the policyholder account balances.

U.S. Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

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

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	153		$	146		$	153		$	150		$	602		$	151		$	146		$	144		$	137		$	578
Net investment income		14			12			13			19			58			11			19			11			18			59
Net investment gains (losses)		—			1			—			—			1			—			—			—			—			—
Policy fees and other income		1			2			—			1			4			1			—			1			—			2

Total revenues		168			161			166			170			665			163			165			156			155			639

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		59			63			50			50			222			91			141			62			63			357
Acquisition and operating expenses, net of deferrals		42			38			38			37			155			38			35			34			33			140
Amortization of deferred acquisition costs and intangibles		3			3			2			2			10			2			1			2			2			7

Total benefits and expenses		104			104			90			89			387			131			177			98			98			504

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		64			57			76			81			278			32			(12	)		58			57			135
Provision (benefit) for income taxes		23			20			27			29			99			11			(10	)		19			24			44

INCOME (LOSS) FROM CONTINUING OPERATIONS		41			37			49			52			179			21			(2	)		39			33			91
ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		—			—			—			—			—			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	41		$	37		$	49		$	52		$	179		$	21		$	(2	)	$	39		$	33		$	91


Effective tax rate (operating income (loss))⁽¹⁾		35.5	%		35.4	%		35.6	%		35.7	%		35.6	%		32.5	%		80.1	%		32.4	%		42.0	%		32.2	%

SALES:
New Insurance Written (NIW)
Flow	$	7,800		$	9,300		$	8,200		$	6,300		$	31,600		$	6,900		$	7,500		$	6,100		$	3,900		$	24,400
Bulk		—			—			—			—			—			—			—			—			—			—

Total U.S. Mortgage Insurance NIW	$	7,800		$	9,300		$	8,200		$	6,300		$	31,600		$	6,900		$	7,500		$	6,100		$	3,900		$	24,400

⁽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 2015

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

(amounts in millions)


	2015																				2014
	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⁾	$	5,900		60		$	7,000		60		$	6,500		60		$	4,400		60		$	5,100		60		$	6,100		59		$	5,300		59		$	3,400		58
Single		1,900		168			2,300		171			1,700		172			1,900		160			1,800		155			1,400		194			800		197			500		200

Total Flow	$	7,800				$	9,300				$	8,200				$	6,300				$	6,900				$	7,500				$	6,100				$	3,900


	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	$	4,600		59	%	$	5,500		59	%	$	5,000		61	%	$	3,700		59	%	$	4,100		59	%	$	4,400		59	%	$	3,600		59	%	$	2,400		61	%
680—735		2,500		32			3,000		32			2,500		30			2,100		33			2,200		32			2,400		32			2,000		33			1,200		31
660—679⁽²⁾		400		5			500		6			400		5			300		5			300		5			400		5			300		5			200		5
620—659		300		4			300		3			300		4			200		3			300		4			300		4			200		3			100		3
<620		—		—			—		—			—		—			—		—			—		—			—		—			—		—			—		—

Total Flow	$	7,800		100	%	$	9,300		100	%	$	8,200		100	%	$	6,300		100	%	$	6,900		100	%	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%

Loan-To-Value Ratio
95.01% and above	$	400		5	%	$	500		5	%	$	400		5	%	$	300		5	%	$	100		2	%	$	200		3	%	$	100		2	%	$	100		3	%
90.01% to 95.00%		4,000		51			4,900		53			4,200		51			3,100		49			3,500		51			3,900		52			3,300		54			1,900		49
85.01% to 90.00%		2,500		32			3,000		32			2,600		32			2,000		32			2,300		33			2,400		32			1,900		31			1,300		33
85.00% and below		900		12			900		10			1,000		12			900		14			1,000		14			1,000		13			800		13			600		15

Total Flow	$	7,800		100	%	$	9,300		100	%	$	8,200		100	%	$	6,300		100	%	$	6,900		100	%	$	7,500		100	%	$	6,100		100	%	$	3,900		100	%

Origination
Purchase	$	6,500		83	%	$	8,100		87	%	$	6,500		79	%	$	4,300		68	%	$	5,300		77	%	$	6,400		85	%	$	5,100		84	%	$	3,000		77	%
Refinance		1,300		17			1,200		13			1,700		21			2,000		32			1,600		23			1,100		15			1,000		16			900		23

Total Flow	$	7,800		100	%	$	9,300		100	%	$	8,200		100	%	$	6,300		100	%	$	6,900		100	%	$	7,500		100	%	$	6,100		100	%	$	3,900		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 2015

Other Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	171		$	171		$	170		$	170		$	682		$	171		$	162		$	151		$	144		$	628

New Risk Written
Flow	$	1,964		$	2,364		$	2,040		$	1,557		$	7,925		$	1,703		$	1,878		$	1,521		$	960		$	6,062
Bulk		—			—			—			—			—			—			—			—			—			—

Total Primary		1,964			2,364			2,040			1,557			7,925			1,703			1,878			1,521			960			6,062
Pool		—			—			—			—			—			—			—			—			—			—

Total New Risk Written	$	1,964		$	2,364		$	2,040		$	1,557		$	7,925		$	1,703		$	1,878		$	1,521		$	960		$	6,062


Primary Insurance In-Force	$	122,400		$	120,400		$	117,100		$	115,200					$	114,400		$	112,400		$	110,500		$	109,100

Risk In-Force
Flow	$	30,616		$	30,001		$	29,026		$	28,415					$	28,112		$	27,507		$	26,880		$	26,405
Bulk⁽¹⁾		326			349			360			387						402			419			434			442

Total Primary		30,942			30,350			29,386			28,802						28,514			27,926			27,314			26,847
Pool		120			129			137			142						151			159			163			171

Total Risk In-Force	$	31,062		$	30,479		$	29,523		$	28,944					$	28,665		$	28,085		$	27,477		$	27,018


Primary Risk In-Force That Is GSE Conforming		96	%		97	%		97	%		97	%					97	%		97	%		97	%		97	%

GAAP Basis Expense Ratio⁽²⁾		29	%		28	%		26	%		26	%		27	%		26	%		25	%		25	%		25	%		25	%

Adjusted Expense Ratio⁽³⁾		26	%		24	%		23	%		23	%		24	%		23	%		23	%		23	%		24	%		23	%

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

Risk To Capital Ratio⁽⁴⁾		16.3:1			14.3:1			13.7:1			14.1:1						14.5:1			15.4:1			14.6:1			18.7:1

Average Primary Loan Size (in thousands)	$	188		$	186		$	184		$	182					$	181		$	180		$	178		$	176

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, 2015, 90% of the 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.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Loss Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Paid Claims
Flow
Direct⁽¹⁾	$	158		$	98		$	131		$	130		$	517		$	142		$	148		$	148		$	178		$	616
Assumed⁽²⁾		1			3			4			5			13			3			4			6			6			19
Ceded		(1	)		—			(1	)		(16	)		(18	)		(4	)		(3	)		(4	)		(15	)		(26	)
Loss adjustment expenses		3			3			3			4			13			4			4			4			5			17

Total Flow		161			104			137			123			525			145			153			154			174			626
Bulk		1			1			2			2			6			2			2			2			2			8

Total Primary		162			105			139			125			531			147			155			156			176			634
Pool		1			—			1			1			3			2			1			1			1			5

Total Paid Claims	$	163		$	105		$	140		$	126		$	534		$	149		$	156		$	157		$	177		$	639


Average Paid Claim (in thousands)⁽³⁾	$	63.6		$	54.0		$	50.8		$	46.5					$	46.6		$	47.6		$	47.2		$	43.6

Average Reserve Per Delinquency (in thousands)
Flow	$	27.2		$	29.4		$	30.6		$	31.0					$	30.2		$	30.7		$	30.0		$	30.3
Bulk loans with established reserve		19.9			20.0			21.5			21.2						20.4			20.5			22.5			19.2
Bulk loans with no reserve⁽⁴⁾		—			—			—			—						—			—			—			—

Reserves:
Flow direct case	$	775		$	870		$	909		$	992					$	1,065		$	1,122		$	1,083		$	1,172
Bulk direct case		17			17			18			20						21			22			24			25
Assumed⁽²⁾		8			9			12			15						21			21			24			29
All other⁽⁵⁾		49			57			57			60						73			74			125			129

Total Reserves	$	849		$	953		$	996		$	1,087					$	1,180		$	1,239		$	1,256		$	1,355


Beginning Reserves	$	953		$	996		$	1,087		$	1,180		$	1,180		$	1,239		$	1,256		$	1,355		$	1,482		$	1,482
Paid claims⁽¹⁾		(164	)		(105	)		(141	)		(142	)		(552	)		(153	)		(158	)		(162	)		(192	)		(665	)
Increase in reserves		60			62			50			49			221			94			141			63			65			363

Ending Reserves	$	849		$	953		$	996		$	1,087		$	849		$	1,180		$	1,239		$	1,256		$	1,355		$	1,180


Beginning Reinsurance Recoverable⁽⁶⁾	$	6		$	6		$	7		$	24		$	24		$	25		$	27		$	31		$	44		$	44
Ceded paid claims		(1	)		—			(1	)		(16	)		(18	)		(4	)		(2	)		(5	)		(15	)		(26	)
Increase in recoverable		—			—			—			(1	)		(1	)		3			—			1			2			6

Ending Reinsurance Recoverable	$	5		$	6		$	6		$	7		$	5		$	24		$	25		$	27		$	31		$	24

Loss Ratio⁽⁷⁾		39	%		43	%		33	%		33	%		37	%		61	%		97	%		43	%		46	%		62	%

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⁾	Direct paid claims and paid claims in the fourth quarter of 2015 include payment of a previously disclosed negotiated servicer settlement reached in 2014 and payment in relation to an agreement on non-performing loans.

⁽²⁾	Assumed is comprised of reinsurance arrangements with state governmental housing finance agencies.

⁽³⁾	Average paid claim in the fourth quarter of 2015 reflects the non-recurring payment to extinguish the risk on prior paid claims pursuant to a previously disclosed servicer settlement reached in 2014.

⁽⁴⁾	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.

⁽⁵⁾	Other includes loss adjustment expenses, pool and incurred but not reported reserves.

⁽⁶⁾	Reinsurance recoverable excludes ceded unearned premium recoveries and amounts for which cash proceeds have not yet been received.

⁽⁷⁾

The ratio of incurred losses and loss adjustment expenses 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 2015

Delinquency Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Number of Primary Delinquencies
Flow		30,416			31,678			31,876			34,220						38,177			39,485			40,897			43,733
Bulk loans with an established reserve		889			917			908			984						1,109			1,147			1,147			1,434
Bulk loans with no reserve⁽¹⁾		358			394			415			461						500			515			561			694

Total Number of Primary Delinquencies		31,663			32,989			33,199			35,665						39,786			41,147			42,605			45,861


Beginning Number of Primary Delinquencies		32,989			33,199			35,665			39,786			39,786			41,147			42,605			45,861			51,459			51,459
New delinquencies		10,043			10,192			9,061			9,554			38,850			10,826			11,574			10,568			12,100			45,068
Delinquency cures		(8,835	)		(8,484	)		(8,800	)		(10,988	)		(37,107	)		(9,030	)		(9,790	)		(10,545	)		(13,678	)		(43,043	)
Paid claims		(2,534	)		(1,918	)		(2,727	)		(2,687	)		(9,866	)		(3,157	)		(3,242	)		(3,279	)		(4,020	)		(13,698	)

Ending Number of Primary Delinquencies		31,663			32,989			33,199			35,665			31,663			39,786			41,147			42,605			45,861			39,786


Composition of Cures
Reported delinquent and cured-intraquarter		1,740			1,805			1,658			2,271						1,434			2,093			1,993			3,141
Number of missed payments delinquent prior to cure:
3 payments or less		5,005			4,630			4,260			6,112						5,340			5,202			5,335			7,252
4 - 11 payments		1,330			1,487			2,250			1,912						1,613			1,772			2,253			2,391
12 payments or more		760			562			632			693						643			723			964			894

Total		8,835			8,484			8,800			10,988						9,030			9,790			10,545			13,678


Primary Delinquencies by Missed Payment Status
3 payments or less		10,487			10,226			9,432			9,271						11,318			11,478			11,228			11,351
4 - 11 payments		7,577			7,376			7,824			9,086						9,684			9,610			9,913			11,463
12 payments or more		13,599			15,387			15,943			17,308						18,784			20,059			21,464			23,047

Primary Delinquencies		31,663			32,989			33,199			35,665						39,786			41,147			42,605			45,861



	December 31, 2015
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		10,103		$	52		$	405			13	%
4 - 11 payments in default		7,366			180			307			59	%
12 payments or more in default		12,947			543			638			85	%

Total		30,416		$	775		$	1,350			57	%


	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	%

⁽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 2015

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment


	2015												2014
	4Q			3Q			2Q			1Q			4Q			3Q			2Q			1Q
Primary Loans
Primary loans in-force		651,668			647,126			636,640			631,591			630,852			624,850			620,415			618,442
Primary delinquent loans		31,663			32,989			33,199			35,665			39,786			41,147			42,605			45,861
Primary delinquency rate		4.86	%		5.10	%		5.21	%		5.65	%		6.31	%		6.59	%		6.87	%		7.42	%

Flow loans in-force		627,349			620,430			608,615			601,472			599,206			591,823			585,719			582,553
Flow delinquent loans		30,416			31,678			31,876			34,220			38,177			39,485			40,897			43,733
Flow delinquency rate		4.85	%		5.11	%		5.24	%		5.69	%		6.37	%		6.67	%		6.98	%		7.51	%

Bulk loans in-force		24,319			26,696			28,025			30,119			31,646			33,027			34,696			35,889
Bulk delinquent loans		1,247			1,311			1,323			1,445			1,609			1,662			1,708			2,128
Bulk delinquency rate		5.13	%		4.91	%		4.72	%		4.80	%		5.08	%		5.03	%		4.92	%		5.93	%

A minus and sub-prime loans in-force		28,332			29,745			31,051			33,805			33,529			34,825			36,219			37,714
A minus and sub-prime delinquent loans		6,448			6,642			6,530			7,019			7,851			8,017			8,238			8,789
A minus and sub-prime delinquency rate		22.76	%		22.33	%		21.03	%		20.76	%		23.42	%		23.02	%		22.74	%		23.30	%

Pool Loans
Pool loans in-force		6,620			7,284			7,709			7,979			8,282			10,125			10,336			10,710
Pool delinquent loans		386			426			447			468			521			549			546			575
Pool delinquency rate		5.83	%		5.85	%		5.80	%		5.87	%		6.29	%		5.42	%		5.28	%		5.37	%

Primary Risk In-Force by Credit Quality
Over 735		53	%		52	%		52	%		52	%		51	%		51	%		51	%		50	%
680-735		31	%		31	%		31	%		31	%		31	%		30	%		30	%		30	%
660-679⁽¹⁾		7	%		7	%		7	%		7	%		7	%		7	%		7	%		8	%
620-659		7	%		7	%		7	%		7	%		8	%		8	%		8	%		8	%
< 620		2	%		3	%		3	%		3	%		3	%		4	%		4	%		4	%

⁽¹⁾	Loans with unknown FICO scores are included in the 660-679 category.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Portfolio Quality Metrics—U.S. Mortgage Insurance Segment

(dollar amounts in millions)


	December 31, 2015
Policy Year	Average Rate⁽¹⁾			% of Total Reserves⁽²⁾			Primary Insurance In-Force		% of Total			Primary Risk In-Force		% of Total			Deliquency Rate
2004 and prior		6.06	%		11.9	%	$	4,004		3.3	%	$	901		2.9	%		14.91	%
2005		5.66	%		11.7			3,539		2.9			959		3.1			13.88	%
2006		5.86	%		17.5			5,817		4.7			1,511		4.9			13.86	%
2007		5.77	%		37.7			14,873		12.1			3,744		12.1			12.39	%
2008		5.30	%		16.8			12,744		10.4			3,230		10.4			6.84	%
2009		4.95	%		0.6			1,814		1.5			423		1.4			2.14	%
2010		4.69	%		0.6			2,291		1.9			575		1.9			1.77	%
2011		4.52	%		0.5			3,257		2.7			835		2.7			1.37	%
2012		3.82	%		0.6			8,321		6.8			2,163		7.0			0.66	%
2013		4.00	%		0.8			14,630		12.0			3,755		12.1			0.59	%
2014		4.40	%		1.1			20,219		16.5			5,106		16.5			0.55	%
2015		4.10	%		0.2			30,866		25.2			7,740		25.0			0.13	%

Total		4.77	%		100.0	%	$	122,375		100.0	%	$	30,942		100.0	%		4.86	%


	December 31, 2015						September 30, 2015					December 31, 2014
	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)	$	30,942			4.86	%	$	30,350		5.10	%	$	28,514		6.31	%
Top 10 lenders		11,536			6.47	%		11,774		6.68	%		12,306		7.65	%
Top 20 lenders		14,201			5.68	%		14,233		5.93	%		14,322		7.47	%

Loan-to-value ratio
95.01% and above	$	6,309			8.17	%	$	6,429		8.15	%	$	6,763		9.07	%
90.01% to 95.00%		14,425			3.36	%		13,841		3.66	%		12,008		4.99	%
80.01% to 90.00%		9,900			4.57	%		9,761		4.85	%		9,383		6.03	%
80.00% and below		308			3.39	%		319		3.44	%		360		3.55	%

Total	$	30,942			4.86	%	$	30,350		5.10	%	$	28,514		6.31	%

Loan grade
Prime	$	29,874			4.05	%	$	29,233		4.27	%	$	27,262		5.35	%
A minus and sub-prime		1,068			22.76	%		1,117		22.33	%		1,252		23.42	%

Total	$	30,942			4.86	%	$	30,350		5.10	%	$	28,514		6.31	%

⁽¹⁾	Average Annual Mortgage Interest Rate.

⁽²⁾	Total reserves were $849 million as of December 31, 2015.

Canada Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Net Operating Income and Sales—Canada Mortgage Insurance Segment

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	115		$	116		$	116		$	119		$	466		$	127		$	130		$	128		$	130		$	515
Net investment income		31			32			33			34			130			38			39			39			39			155
Net investment gains (losses)		(11	)		(23	)		20			(18	)		(32	)		(7	)		(4	)		12			(3	)		(2	)
Policy fees and other income		—			(1	)		—			1			—			—			(2	)		1			2			1

Total revenues		135			124			169			136			564			158			163			180			168			669

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		26			24			21			25			96			33			28			15			26			102
Acquisition and operating expenses, net of deferrals		16			16			22			12			66			23			18			28			21			90
Amortization of deferred acquisition costs and intangibles		9			9			9			9			36			9			10			9			10			38
Interest expense		4			5			4			5			18			5			5			6			5			21

Total benefits and expenses		55			54			56			51			216			70			61			58			62			251

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		80			70			113			85			348			88			102			122			106			418
Provision for income taxes		20			17			31			22			90			24			24			32			31			111

INCOME FROM CONTINUING OPERATIONS		60			53			82			63			258			64			78			90			75			307
Less: net income attributable to noncontrolling interests		27			24			38			29			118			30			34			41			35			140

INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		33			29			44			34			140			34			44			49			40			167

ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS:
Net investment (gains) losses, net		4			9			(7	)		6			12			2			2			(4	)		1			1
(Gains) losses on early extinguishment of debt, net		—			—			—			—			—			—			—			2			—			2

NET OPERATING INCOME⁽¹⁾	$	37		$	38		$	37		$	40		$	152		$	36		$	46		$	47		$	41		$	170


Effective tax rate (operating income)		27.1	%		27.2	%		27.3	%		27.9	%		27.4	%		29.4	%		21.2	%		26.3	%		31.6	%		27.1	%

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

Total Canada NIW⁽²⁾	$	12,000		$	11,400		$	8,700		$	8,300		$	40,400		$	7,800		$	12,400		$	12,500		$	5,800		$	38,500

⁽¹⁾	Net operating income for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $45 million and $177 million for the three and twelve months ended December 31, 2015, respectively.

⁽²⁾	New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $14,100 million and $46,400 million for the three and twelve months ended December 31, 2015, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Selected Key Performance Measures—Canada Mortgage Insurance Segment

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	162		$	204		$	166		$	109		$	641		$	160		$	200		$	146		$	77		$	583
Loss Ratio⁽¹⁾		23	%		21	%		17	%		22	%		21	%		26	%		21	%		12	%		20	%		20	%
GAAP Basis Expense Ratio⁽²⁾		22	%		22	%		27	%		18	%		22	%		26	%		22	%		29	%		23	%		25	%
Adjusted Expense Ratio⁽³⁾		15	%		12	%		19	%		20	%		16	%		20	%		14	%		26	%		39	%		22	%

Primary Insurance In-Force⁽⁴⁾	$	292,600		$	292,000		$	300,900		$	288,800					$	306,600		$	310,800		$	314,500		$	291,900
Primary Risk In-Force⁽⁵⁾
Flow	$	74,300		$	75,500		$	78,500		$	75,700					$	81,300		$	82,600		$	84,500		$	80,100
Bulk		28,100			26,700			26,800			25,400						26,000			26,200			25,600			22,100

Total	$	102,400		$	102,200		$	105,300		$	101,100					$	107,300		$	108,800		$	110,100		$	102,200



Risk In-Force by Loan-To-Value Ratio⁽⁶⁾	December 31, 2015															September 30, 2015
	Primary			Flow			Bulk									Primary			Flow			Bulk
95.01% and above	$	35,570		$	35,570		$	—								$	35,931		$	35,931		$	—
90.01% to 95.00%		22,338			22,338			—									22,766			22,766			—
80.01% to 90.00%		13,630			13,627			3									13,978			13,975			3
80.00% and below		30,873			2,729			28,144									29,541			2,790			26,751

Total	$	102,411		$	74,264		$	28,147								$	102,216		$	75,462		$	26,754

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.

Amounts may not total due to rounding

⁽¹⁾	The ratio of incurred losses and loss adjustment expenses to net earned premiums.

⁽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. The debt early redemption payment of $6 million in the second quarter of 2014 unfavorably impacted the GAAP basis expense ratio for the three months ended June 30, 2014 and the twelve months ended December 31, 2014 by five percentage points and one percentage point, respectively.

⁽³⁾

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. The debt early redemption payment of $6 million in the second quarter of 2014 unfavorably impacted the adjusted expense ratio for the three months ended June 30, 2014 and the twelve months ended December 31, 2014 by five percentage points and one percentage point, respectively.

⁽⁴⁾

As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding balances in Canada from most of its customers. As a result, the company estimates that the outstanding balance of insured mortgages was approximately $138.0 billion, $142.0 billion, $137.0 billion, $145.0 billion, $148.0 billion, $152.0 billion and $141.0 billion as of September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014. This is based on the extrapolation of the amounts reported by lenders to the entire insured population.

⁽⁵⁾

The business currently provides 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Canada 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 business. This factor was 35% for all periods presented.

⁽⁶⁾	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Selected Key Performance Measures—Canada Mortgage Insurance Segment

(dollar amounts in millions)


Primary Insurance	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Insured loans in-force^(1),(2)		1,835,916			1,785,541			1,737,083			1,704,483			1,673,505
Insured delinquent loans		1,829			1,715			1,666			1,792			1,756
Insured delinquency rate^(2),(3)		0.10	%		0.10	%		0.10	%		0.11	%		0.10	%

Flow loans in-force⁽¹⁾		1,331,773			1,313,034			1,287,744			1,266,626			1,255,050
Flow delinquent loans		1,550			1,449			1,435			1,532			1,493
Flow delinquency rate⁽³⁾		0.12	%		0.11	%		0.11	%		0.12	%		0.12	%

Bulk loans in-force⁽¹⁾		504,143			472,507			449,339			437,857			418,455
Bulk delinquent loans		279			266			231			260			263
Bulk delinquency rate⁽³⁾		0.06	%		0.06	%		0.05	%		0.06	%		0.06	%

Loss Metrics	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Beginning Reserves	$	83		$	85		$	85		$	91		$	89
Paid claims⁽⁴⁾		(18	)		(20	)		(21	)		(22	)		(24	)
Increase in reserves		25			23			19			24			29
Impact of changes in foreign exchange rates		(3	)		(5	)		2			(8	)		(3	)

Ending Reserves	$	87		$	83		$	85		$	85		$	91


	December 31, 2015						September 30, 2015						December 31, 2014
Province and Territory	% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate			% of Primary Risk In-Force			Primary Delinquency Rate
Ontario		47	%		0.05	%		46	%		0.05	%		46	%		0.05	%
Alberta		17			0.12	%		17			0.10	%		17			0.10	%
British Columbia		14			0.08	%		14			0.10	%		14			0.14	%
Quebec		13			0.19	%		13			0.18	%		14			0.19	%
Saskatchewan		3			0.17	%		3			0.15	%		3			0.13	%
Nova Scotia		2			0.18	%		2			0.20	%		2			0.23	%
Manitoba		2			0.09	%		2			0.08	%		2			0.07	%
New Brunswick		1			0.20	%		1			0.19	%		1			0.20	%
All Other		1			0.13	%		2			0.11	%		1			0.12	%

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


By Policy Year
2006 and prior		28	%		0.02	%		29	%		0.03	%		31	%		0.03	%
2007		8			0.14	%		8			0.14	%		9			0.16	%
2008		6			0.19	%		6			0.17	%		7			0.21	%
2009		4			0.16	%		4			0.15	%		5			0.22	%
2010		7			0.21	%		7			0.21	%		8			0.23	%
2011		6			0.26	%		7			0.25	%		7			0.25	%
2012		7			0.22	%		9			0.21	%		10			0.19	%
2013		9			0.16	%		9			0.13	%		11			0.09	%
2014		10			0.09	%		11			0.06	%		12			0.02	%
2015		15			0.01	%		10			—	%		—			—	%

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

⁽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⁾

As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding loans in-force in Canada from most of its customers. As a result, the company estimates that the outstanding loans in-force were 836,000 as of September 30, 2015, 828,000 as of June 30, 2015, 809,100 as of March 31, 2015, and 793,700 as of December 31, 2014. This is based on the extrapolation of the amounts reported by lenders to the entire insured population. The corresponding insured delinquency rate was 0.21% as of September 30, 2015, 0.20% as of June 30, 2015 and 0.22% as of March 31, 2015 and December 31, 2014.

⁽³⁾	Delinquency rates are based on insured loans in-force.

⁽⁴⁾	Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Selected Key Performance Measures—Canada Mortgage Insurance Segment

(Canadian dollar amounts in millions)


	2015														2014
	4Q			3Q			2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	23		$	25		$	25		$	25		$	98	$	26		$	25		$	28		$	28		$	107
Bulk		1			1			1			2			5		1			1			—			1			3

Total Paid Claims	$	24		$	26		$	26		$	27		$	103	$	27		$	26		$	28		$	29		$	110


Average Paid Claim (in thousands)	$	63.7		$	66.2		$	58.7		$	67.9				$	60.2		$	63.9		$	63.4		$	66.4

Average Reserve Per Delinquency (in thousands)	$	65.7		$	64.2		$	63.6		$	60.4				$	60.2		$	58.4		$	56.4		$	57.5

Loss Metrics

Beginning Reserves	$	110		$	106		$	108		$	106				$	100		$	96		$	107		$	108
Paid claims⁽¹⁾		(24	)		(26	)		(26	)		(27	)				(27	)		(26	)		(28	)		(29	)
Increase in reserves		34			30			24			29					33			30			17			28

Ending Reserves	$	120		$	110		$	106		$	108				$	106		$	100		$	96		$	107

Loan Amount⁽²⁾

Over $550K		7	%		7	%		6	%		6	%				6	%		6	%		5	%		5	%
$400K to $550K		13			12			12			12					11			11			11			11
$250K to $400K		33			33			33			33					33			32			32			32
$100K to $250K		43			44			44			44					45			46			47			47
$100K or Less		4			4			5			5					5			5			5			5

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


Average Primary Loan Size (in thousands)	$	221		$	218		$	216		$	215				$	213		$	212		$	209		$	208

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

2006 and prior		33	%		35	%		35	%		36	%				36	%		38	%		39	%		39	%
2007		57	%		60	%		61	%		61	%				61	%		64	%		64	%		65	%
2008		64	%		67	%		68	%		68	%				68	%		71	%		71	%		71	%
2009		62	%		65	%		66	%		66	%				66	%		69	%		70	%		70	%
2010		69	%		71	%		73	%		73	%				73	%		76	%		77	%		77	%
2011		73	%		75	%		77	%		77	%				77	%		80	%		81	%		81	%
2012		77	%		80	%		82	%		82	%				82	%		86	%		86	%		87	%
2013		81	%		84	%		86	%		86	%				87	%		90	%		91	%		91	%
2014		87	%		90	%		92	%		92	%				92	%		93	%		93	%		—	%
2015		91	%		93	%		93	%		—	%				—	%		—	%		—	%		—	%
Total Flow		54	%		55	%		56	%		56	%				56	%		57	%		57	%		57	%

Total Bulk		41	%		43	%		42	%		42	%				42	%		42	%		41	%		41	%
Total		51	%		52	%		52	%		52	%				52	%		53	%		54	%		54	%

All amounts presented in Canadian dollars.

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

⁽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.

Australia Mortgage Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Net Operating Income and Sales—Australia Mortgage Insurance Segment

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	86		$	92		$	90		$	89		$	357		$	102		$	105		$	102		$	97		$	406
Net investment income		25			28			29			32			114			36			38			36			34			144
Net investment gains (losses)		2			3			—			1			6			3			—			—			—			3
Policy fees and other income		1			(1	)		1			(4	)		(3	)		(5	)		(7	)		(4	)		—			(16	)

Total revenues		114			122			120			118			474			136			136			134			131			537

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		15			27			25			14			81			15			22			24			17			78
Acquisition and operating expenses, net of deferrals		24			27			25			22			98			30			25			23			19			97
Amortization of deferred acquisition costs and intangibles		4			4			5			5			18			5			5			6			5			21
Interest expense		3			3			2			2			10			2			3			2			3			10

Total benefits and expenses		46			61			57			43			207			52			55			55			44			206

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		68			61			63			75			267			84			81			79			87			331
Provision for income taxes		20			18			18			24			80			202			10			11			25			248

INCOME (LOSS) FROM CONTINUING OPERATIONS		48			43			45			51			187			(118	)		71			68			62			83
Less: net income attributable to noncontrolling interests		25			22			16			21			84			22			23			11			—			56


INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS		23			21			29			30			103			(140	)		48			57			62			27

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

NET OPERATING INCOME⁽¹⁾	$	22		$	21		$	29		$	30		$	102		$	33		$	48		$	57		$	62		$	200


Effective tax rate (operating income)		28.7	%		28.0	%		29.5	%		30.5	%		29.3	%		34.8	%		14.2	%		10.4	%		29.0	%		22.3	%

SALES:
New Insurance Written (NIW)
Flow	$	4,600		$	6,300		$	6,500		$	5,800		$	23,200		$	8,000		$	8,100		$	7,900		$	7,800		$	31,800
Bulk		—			—			1,700			—			1,700			100			1,000			—			—			1,100

Total Australia NIW⁽²⁾	$	4,600		$	6,300		$	8,200		$	5,800		$	24,900		$	8,100		$	9,100		$	7,900		$	7,800		$	32,900

⁽¹⁾	Net operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $28 million and $123 million for the three and twelve months ended December 31, 2015, respectively.

⁽²⁾	New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $5,600 million and $29,700 million for the three and twelve months ended December 31, 2015, respectively.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Premiums Written	$	55		$	79		$	107		$	87		$	328		$	128		$	130		$	125		$	126		$	509
Loss Ratio^(1),(2)		17	%		29	%		28	%		15	%		23	%		15	%		21	%		23	%		17	%		19	%
GAAP Basis Expense Ratio⁽³⁾		31	%		34	%		33	%		30	%		32	%		34	%		28	%		28	%		25	%		29	%
Adjusted Expense Ratio⁽⁴⁾		49	%		40	%		28	%		31	%		35	%		27	%		23	%		23	%		20	%		23	%

Primary Insurance In-Force	$	233,600		$	224,100		$	243,800		$	240,900					$	256,000		$	271,100		$	288,500		$	281,000
Primary Risk In-Force⁽⁵⁾
Flow	$	76,000		$	72,900		$	79,100		$	78,600					$	83,400		$	88,100		$	93,800		$	91,100
Bulk		5,500			5,500			6,200			5,700						6,200			6,800			7,200			7,200

Total	$	81,500		$	78,400		$	85,300		$	84,300					$	89,600		$	94,900		$	101,000		$	98,300



	December 31, 2015															September 30, 2015
Risk In-Force by Loan-To-Value Ratio⁽⁶⁾	Primary			Flow			Bulk									Primary			Flow			Bulk
95.01% and above	$	15,055		$	15,055		$	—								$	14,697		$	14,697		$	—
90.01% to 95.00%		20,933			20,927			6									19,883			19,877			6
80.01% to 90.00%		21,510			21,446			64									20,522			20,460			62
80.00% and below		23,970			18,545			5,426									23,323			17,872			5,451

Total	$	81,468		$	75,972		$	5,496								$	78,425		$	72,906		$	5,519

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.

Amounts may not total due to rounding.

⁽¹⁾	The ratio of incurred losses and loss adjustment expenses to net earned premiums.

⁽²⁾

During the third quarter of 2015, the company increased reserves $9 million mainly related to the estimate of the period of time it takes for a delinquent loan to be reported and increased net earned premiums $8 million from refinements to premium recognition factors. These adjustments unfavorably impacted the loss ratio by seven percentage points for the three months ended September 30, 2015. During the first quarter of 2015, the company accrued a $7 million pre-tax receivable for expected recoveries relating to paid claims reflecting its experience of successful borrower recovery activity, which favorably impacted the loss ratio by nine percentage points for the three months ended March 31, 2015.

⁽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. The debt early redemption payment of $2 million in the third quarter of 2015 unfavorably impacted the GAAP basis expense ratio for the three months ended September 30, 2015 by two percentage points.

⁽⁴⁾

The ratio of an insurer's general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. The debt early redemption payment of $2 million in the third quarter of 2015 unfavorably impacted the adjusted expense ratio for the three months ended September 30, 2015 by two percentage points.

⁽⁵⁾

The business currently provide 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Australia 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 business. This factor was 35% for all periods presented. Australia also has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor.

⁽⁶⁾	Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable.

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(dollar amounts in millions)


Primary Insurance	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Insured loans in-force		1,478,434			1,479,676			1,481,755			1,498,197			1,496,616
Insured delinquent loans		5,552			5,804			5,900			5,378			4,953
Insured delinquency rate		0.38	%		0.39	%		0.40	%		0.36	%		0.33	%

Flow loans in-force		1,364,628			1,364,537			1,364,653			1,382,156			1,378,584
Flow delinquent loans		5,317			5,545			5,623			5,112			4,714
Flow delinquency rate		0.39	%		0.41	%		0.41	%		0.37	%		0.34	%

Bulk loans in-force		113,806			115,139			117,102			116,041			118,032
Bulk delinquent loans		235			259			277			266			239
Bulk delinquency rate		0.21	%		0.22	%		0.24	%		0.23	%		0.20	%

Loss Metrics	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Beginning Reserves	$	156		$	160		$	149		$	152		$	161
Paid claims⁽¹⁾		(14	)		(16	)		(15	)		(14	)		(14	)
Increase in reserves		17			27			25			21			15
Impact of changes in foreign exchange rates		6			(15	)		1			(10	)		(10	)

Ending Reserves	$	165		$	156		$	160		$	149		$	152


	December 31, 2015						September 30, 2015						December 31, 2014
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	%		29	%		0.27%
Queensland		23			0.53	%		23			0.57	%		23			0.47%
Victoria		23			0.33	%		23			0.35	%		23			0.30%
Western Australia		11			0.46	%		11			0.45	%		11			0.32%
South Australia		6			0.51	%		6			0.50	%		6			0.44%
Australian Capital Territory		3			0.17	%		3			0.15	%		3			0.16%
Tasmania		2			0.32	%		2			0.31	%		2			0.25%
New Zealand		2			0.17	%		2			0.23	%		2			0.28%
Northern Territory		1			0.17	%		1			0.21	%		1			0.16%

Total		100	%		0.38	%		100	%		0.39	%		100	%		0.33%


By Policy Year
2006 and prior		29	%		0.23	%		29	%		0.24	%		32	%		0.20%
2007		7			0.72	%		7			0.74	%		8			0.63%
2008		6			0.89	%		7			0.93	%		7			0.87%
2009		8			0.71	%		8			0.75	%		9			0.66%
2010		6			0.46	%		6			0.44	%		6			0.38%
2011		6			0.46	%		6			0.46	%		7			0.40%
2012		8			0.49	%		9			0.51	%		9			0.32%
2013		10			0.37	%		10			0.37	%		11			0.18%
2014		11			0.19	%		11			0.16	%		11			0.02%
2015		9			0.02	%		7			0.01	%		—	%		— %

Total		100	%		0.38	%		100	%		0.39	%		100	%		0.33%

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Selected Key Performance Measures—Australia Mortgage Insurance Segment

(Australian dollar amounts in millions)


	2015														2014
	4Q			3Q			2Q			1Q			Total		4Q			3Q			2Q			1Q			Total
Paid Claims⁽¹⁾
Flow	$	22		$	21		$	19		$	17		$	79	$	15		$	20		$	25		$	30		$	90
Bulk		—			—			—			1			1		—			1			—			—			1

Total Paid Claims	$	22		$	21		$	19		$	18		$	80	$	15		$	21		$	25		$	30		$	91


Average Paid Claim (in thousands)	$	71.0		$	65.9		$	66.9		$	62.5				$	49.5		$	58.6		$	60.5		$	65.1

Average Reserve Per Delinquency (in thousands)	$	40.7		$	38.3		$	35.2		$	36.4				$	37.6		$	34.8		$	33.6		$	35.7

Loss Metrics
Beginning Reserves	$	222		$	208		$	196		$	186				$	184		$	181		$	181		$	192
Paid claims⁽¹⁾		(22	)		(21	)		(19	)		(18	)				(15	)		(21	)		(25	)		(30	)
Increase in reserves		26			35			31			28					17			24			25			19

Ending Reserves	$	226		$	222		$	208		$	196				$	186		$	184		$	181		$	181

Loan Amount⁽²⁾

Over $550K		15	%		15	%		14	%		13	%				13	%		13	%		12	%		12	%
$400K to $550K		19			19			19			19					18			18			18			18
$250K to $400K		36			36			36			37					37			37			37			37
$100K to $250K		25			25			25			26					26			26			27			27
$100K or Less		5			5			6			5					6			6			6			6

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


Average Primary Loan Size (in thousands)	$	217		$	216		$	213		$	211				$	210		$	208		$	207		$	205

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

2006 and prior		32	%		34	%		35	%		36	%				36	%		38	%		38	%		40	%
2007		53	%		55	%		56	%		57	%				58	%		60	%		61	%		63	%
2008		60	%		62	%		63	%		65	%				66	%		67	%		68	%		70	%
2009		61	%		64	%		65	%		67	%				68	%		69	%		70	%		73	%
2010		66	%		68	%		70	%		72	%				73	%		74	%		76	%		78	%
2011		68	%		70	%		72	%		73	%				74	%		76	%		77	%		80	%
2012		69	%		71	%		72	%		74	%				75	%		77	%		78	%		80	%
2013		73	%		75	%		76	%		78	%				79	%		81	%		82	%		84	%
2014		80	%		82	%		84	%		85	%				86	%		87	%		87	%		—	%
2015		84	%		87	%		87	%		—	%				—	%		—	%		—	%		—	%
Total Flow		57	%		59	%		59	%		60	%				60	%		61	%		61	%		62	%

Total Bulk		25	%		27	%		26	%		27	%				28	%		28	%		29	%		30	%
Total		54	%		56	%		56	%		56	%				57	%		58	%		58	%		59	%

All amounts presented in Australian dollars.

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

⁽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 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.

U.S. Life Insurance Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

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

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	797		$	784		$	769		$	778		$	3,128		$	827		$	821		$	762		$	759		$	3,169
Net investment income		673			680			677			671			2,701			676			658			671			660			2,665
Net investment gains (losses)		17			(16	)		(7	)		(4	)		(10	)		12			1			25			3			41
Policy fees and other income		187			177			182			180			726			180			186			175			171			712

Total revenues		1,674			1,625			1,621			1,625			6,545			1,695			1,666			1,633			1,593			6,587

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		1,324			1,155			1,122			1,091			4,692			1,981			1,722			1,087			1,030			5,820
Interest credited		148			148			150			150			596			154			155			155			154			618
Acquisition and operating expenses, net of deferrals		178			176			167			163			684			168			173			156			161			658
Amortization of deferred acquisition costs and intangibles		194			530			75			73			872			98			91			81			75			345
Goodwill impairment		—			—			—			—			—			299			550			—			—			849
Interest expense		23			22			22			25			92			23			22			21			21			87

Total benefits and expenses		1,867			2,031			1,536			1,502			6,936			2,723			2,713			1,500			1,441			8,377

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(193	)		(406	)		85			123			(391	)		(1,028	)		(1,047	)		133			152			(1,790	)
Provision (benefit) for income taxes		(68	)		(144	)		31			43			(138	)		(278	)		(211	)		47			57			(385	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(125	)		(262	)		54			80			(253	)		(750	)		(836	)		86			95			(1,405	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(12	)		6			2			1			(3	)		(6	)		(3	)		(17	)		(1	)		(27	)
Goodwill impairment, net		—			—			—			—			—			274			517			—			—			791
(Gains) losses from life block transactions, net		—			296			—			—			296			—			—			—			—			—
Expenses related to restructuring, net		2			—			1			—			3			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	(135	)	$	40		$	57		$	81		$	43		$	(482	)	$	(322	)	$	69		$	94		$	(641	)


Effective tax rate (operating income (loss))		35.3	%		35.3	%		35.3	%		35.3	%		35.3	%		34.7	%		35.8	%		35.6	%		37.3	%		34.7	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

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

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	633		$	618		$	597		$	589		$	2,437		$	607		$	587		$	577		$	565		$	2,336
Net investment income		325			327			320			313			1,285			303			293			292			290			1,178
Net investment gains (losses)		24			4			(3	)		3			28			6			(1	)		3			—			8
Policy fees and other income		1			—			1			—			2			—			—			—			1			1

Total revenues		983			949			915			905			3,752			916			879			872			856			3,523

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		797			825			780			766			3,168			1,545			1,313			735			664			4,257
Interest credited		—			—			—			—			—			—			—			—			—			—
Acquisition and operating expenses, net of deferrals		110			112			98			95			415			106			103			97			93			399
Amortization of deferred acquisition costs and intangibles		25			24			24			26			99			34			25			27			26			112
Goodwill impairment		—			—			—			—			—			154			200			—			—			354
Interest expense		—			—			—			—			—			—			—			—			—			—

Total benefits and expenses		932			961			902			887			3,682			1,839			1,641			859			783			5,122

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		51			(12	)		13			18			70			(923	)		(762	)		13			73			(1,599	)
Provision (benefit) for income taxes		19			(5	)		5			6			25			(291	)		(234	)		5			27			(493	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		32			(7	)		8			12			45			(632	)		(528	)		8			46			(1,106	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(15	)		(3	)		2			(2	)		(18	)		(3	)		—			(2	)		—			(5	)
Goodwill impairment, net		—			—			—			—			—			129			167			—			—			296
Expenses related to restructuring, net		2			—			—			—			2			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	19		$	(10	)	$	10		$	10		$	29		$	(506	)	$	(361	)	$	6		$	46		$	(815	)


Effective tax rate (operating income (loss))		35.3	%		35.3	%		35.3	%		35.3	%		35.3	%		34.6	%		35.7	%		37.1	%		37.0	%		34.9	%

SALES:
Individual Long-Term Care Insurance	$	8		$	7		$	8		$	10		$	33		$	17		$	28		$	24		$	21		$	90
Group Long-Term Care Insurance		2			1			1			1			5			6			1			2			1			10

Total Sales	$	10		$	8		$	9		$	11		$	38		$	23		$	29		$	26		$	22		$	100


RATIOS:
Loss Ratio⁽¹⁾		72.9	%		76.4	%		72.6	%		72.4	%		73.6	%		200.1	%		173.0	%		73.2	%		63.3	%		128.8	%
Gross Benefits Ratio⁽²⁾		125.9	%		133.5	%		130.5	%		130.2	%		130.0	%		254.4	%		224.1	%		127.3	%		117.5	%		182.2	%

⁽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 2015

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

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	160		$	162		$	169		$	179		$	670		$	175		$	193		$	171		$	183		$	722
Net investment income		125			126			127			127			505			133			123			137			128			521
Net investment gains (losses)		15			(8	)		3			3			13			—			10			23			1			34
Policy fees and other income		183			175			178			178			714			179			184			173			168			704

Total revenues		483			455			477			487			1,902			487			510			504			480			1,981

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		446			248			266			250			1,210			315			293			257			281			1,146
Interest credited		68			66			68			66			268			67			67			66			66			266
Acquisition and operating expenses, net of deferrals		50			48			52			51			201			45			52			45			50			192
Amortization of deferred acquisition costs and intangibles		150			487			33			30			700			36			46			32			26			140
Goodwill impairment		—			—			—			—			—			145			350			—			—			495
Interest expense		23			22			22			25			92			23			22			21			21			87

Total benefits and expenses		737			871			441			422			2,471			631			830			421			444			2,326

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(254	)		(416	)		36			65			(569	)		(144	)		(320	)		83			36			(345	)
Provision (benefit) for income taxes		(90	)		(147	)		13			23			(201	)		—			11			29			14			54

INCOME (LOSS) FROM CONTINUING OPERATIONS		(164	)		(269	)		23			42			(368	)		(144	)		(331	)		54			22			(399	)

ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		(9	)		4			(2	)		(2	)		(9	)		—			(6	)		(15	)		(1	)		(22	)
Goodwill impairment, net		—			—			—			—			—			145			350			—			—			495
(Gains) losses from life block transactions, net		—			296			—			—			296			—			—			—			—			—
Expenses related to restructuring, net		—			—			1			—			1			—			—			—			—			—

NET OPERATING INCOME (LOSS)	$	(173	)	$	31		$	22		$	40		$	(80	)	$	1		$	13		$	39		$	21		$	74


Effective tax rate (operating income (loss))		35.3	%		35.3	%		35.3	%		35.3	%		35.3	%		NM	⁽¹⁾		35.2	%		35.4	%		39.3	%		36.2	%

SALES:
Term Life	$	6		$	7		$	9		$	9		$	31		$	11		$	13		$	14		$	13		$	51
Universal Life		3			2			4			4			13			7			11			7			6			31
Linked-Benefits		1			3			2			4			10			5			4			5			2			16

Total Sales	$	10		$	12		$	15		$	17		$	54		$	23		$	28		$	26		$	21		$	98

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

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

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

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	4		$	4		$	3		$	10		$	21		$	45		$	41		$	14		$	11		$	111
Net investment income		223			227			230			231			911			240			242			242			242			966
Net investment gains (losses)		(22	)		(12	)		(7	)		(10	)		(51	)		6			(8	)		(1	)		2			(1	)
Policy fees and other income		3			2			3			2			10			1			2			2			2			7

Total revenues		208			221			229			233			891			292			277			257			257			1,083

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		81			82			76			75			314			121			116			95			85			417
Interest credited		80			82			82			84			328			87			88			89			88			352
Acquisition and operating expenses, net of deferrals		18			16			17			17			68			17			18			14			18			67
Amortization of deferred acquisition costs and intangibles		19			19			18			17			73			28			20			22			23			93
Interest expense		—			—			—			—			—			—			—			—			—			—

Total benefits and expenses		198			199			193			193			783			253			242			220			214			929

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		10			22			36			40			108			39			35			37			43			154
Provision for income taxes		3			8			13			14			38			13			12			13			16			54

INCOME FROM CONTINUING OPERATIONS		7			14			23			26			70			26			23			24			27			100

ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		12			5			2			5			24			(3	)		3			—			—			—

NET OPERATING INCOME	$	19		$	19		$	25		$	31		$	94		$	23		$	26		$	24		$	27		$	100


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

SALES:
Single Premium Deferred Annuities	$	297		$	248		$	211		$	306		$	1,062		$	439		$	322		$	400		$	492		$	1,653
Single Premium Immediate Annuities		17			12			13			20			62			56			49			29			28			162

Total Sales	$	314		$	260		$	224		$	326		$	1,124		$	495		$	371		$	429		$	520		$	1,815

Runoff Segment

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Net Operating Income (Loss)—Runoff Segment

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	—		$	—		$	1		$	—		$	1		$	—		$	1		$	1		$	1		$	3
Net investment income		35			32			40			31			138			32			32			33			32			129
Net investment gains (losses)		(30	)		(25	)		(8	)		(6	)		(69	)		(23	)		(33	)		3			(13	)		(66	)
Policy fees and other income		45			46			49			49			189			51			53			52			53			209

Total revenues		50			53			82			74			259			60			53			89			73			275

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		8			18			11			7			44			10			13			6			8			37
Interest credited		32			31			31			30			124			31			30			29			29			119
Acquisition and operating expenses, net of deferrals		19			17			21			19			76			22			22			20			20			84
Amortization of deferred acquisition costs and intangibles		(3	)		17			10			5			29			13			5			10			11			39
Interest expense		—			—			1			—			1			—			—			1			—			1

Total benefits and expenses		56			83			74			61			274			76			70			66			68			280

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(6	)		(30	)		8			13			(15	)		(16	)		(17	)		23			5			(5	)
Provision (benefit) for income taxes		(3	)		(12	)		2			3			(10	)		(19	)		(5	)		5			—			(19	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		(3	)		(18	)		6			10			(5	)		3			(12	)		18			5			14

ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS:
Net investment (gains) losses, net		14			14			3			1			32			13			17			(3	)		7			34

NET OPERATING INCOME (LOSS)	$	11		$	(4	)	$	9		$	11		$	27		$	16		$	5		$	15		$	12		$	48


Effective tax rate (operating income (loss))		26.6	%		49.2	%		25.7	%		26.7	%		19.9	%		NM	⁽¹⁾		48.2	%		16.1	%		25.1	%		-1.0	%

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

Corporate and Other

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Net Operating Loss—Corporate and Other⁽¹⁾

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
REVENUES:
Premiums	$	6		$	7		$	5		$	7		$	25		$	7		$	7		$	7		$	8		$	29
Net investment income		3			(1	)		1			(6	)		(3	)		4			(8	)		1			(7	)		(10	)
Net investment gains (losses)		6			9			3			11			29			4			9			(6	)		(5	)		2
Policy fees and other income		—			—			(10	)		—			(10	)		2			(1	)		—			—			1

Total revenues		15			15			(1	)		12			41			17			7			2			(4	)		22

BENEFITS AND EXPENSES:
Benefits and other changes in policy reserves		3			3			3			5			14			6			8			6			4			24
Acquisition and operating expenses, net of deferrals		154			40			22			14			230			18			11			21			19			69
Amortization of deferred acquisition costs and intangibles		—			—			—			1			1			1			1			—			1			3
Interest expense		74			75			74			75			298			76			74			82			82			314

Total benefits and expenses		231			118			99			95			543			101			94			109			106			410

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(216	)		(103	)		(100	)		(83	)		(502	)		(84	)		(87	)		(107	)		(110	)		(388	)
Provision (benefit) for income taxes		(28	)		(33	)		(39	)		(30	)		(130	)		(18	)		5			(30	)		(50	)		(93	)

LOSS FROM CONTINUING OPERATIONS		(188	)		(70	)		(61	)		(53	)		(372	)		(66	)		(92	)		(77	)		(60	)		(295	)
Income (loss) from discontinued operations, net of taxes		(73	)		(21	)		(314	)		1			(407	)		138			6			4			9			157

NET INCOME (LOSS)		(261	)		(91	)		(375	)		(52	)		(779	)		72			(86	)		(73	)		(51	)		(138	)

ADJUSTMENTS TO NET INCOME (LOSS):
Net investment (gains) losses, net		(5	)		(6	)		(2	)		(7	)		(20	)		(4	)		(6	)		4			4			(2	)
(Gains) losses on sale of business, net		134			7			—			—			141			—			—			—			—			—
(Gains) losses on early extinguishment of debt, net		—			1			—			—			1			—			—			—			—			—
Expenses related to restructuring, net		1			—			1			—			2			—			—			—			—			—
Tax impact from potential business portfolio changes		—			—			—			—			—			31			—			—			—			31
(Income) loss from discontinued operations, net of taxes		73			21			314			(1	)		407			(138	)		(6	)		(4	)		(9	)		(157	)

NET OPERATING LOSS⁽²⁾	$	(58	)	$	(68	)	$	(62	)	$	(60	)	$	(248	)	$	(39	)	$	(98	)	$	(73	)	$	(56	)	$	(266	)


Effective tax rate (operating loss)		27.4	%		40.0	%		40.2	%		34.0	%		36.0	%		57.1	%		-1.6	%		27.4	%		46.1	%		32.0	%
⁽¹⁾ Includes inter-segment eliminations and the results of other businesses that are managed outside of the operating segments. ⁽²⁾ Operating results of certain smaller international mortgage insurance businesses are included above. Metrics for these businesses were as follows:


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
Net Operating Loss	$	(4	)	$	(5	)	$	(5	)	$	(6	)	$	(20	)	$	(7	)	$	(7	)	$	(7	)	$	(4	)	$	(25	)
Loss Ratio^(a)		62	%		48	%		43	%		81	%		59	%		84	%		105	%		90	%		55	%		83	%
GAAP Basis Expense Ratio^(b),(c)		145	%		143	%		143	%		125	%		139	%		115	%		126	%		131	%		107	%		120	%
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. ^(a) The ratio of incurred losses and loss adjustment expenses to net earned premiums. ^(b) 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. ^(c) Includes the impact of settlements and cancelled insurance contracts, primarily in Europe.

Additional Financial Data

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Investments Summary

(amounts in millions)


		December 31, 2015					September 30, 2015					June 30, 2015					March 31, 2015					December 31, 2014
		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		$	31,969		43	%	$	33,541		44	%	$	33,407		45	%	$	34,555		44	%	$	34,159		45	%
Private fixed maturity securities			10,822		15			10,908		15			10,777		14			10,879		14			10,939		14
Residential mortgage-backed securities⁽¹⁾			4,998		7			5,008		7			4,954		7			5,011		6			5,082		7
Commercial mortgage-backed securities			2,475		3			2,492		3			2,475		3			2,548		3			2,491		3
Other asset-backed securities			3,253		4			3,904		5			3,837		5			3,766		5			3,669		5
State and political subdivisions			2,428		3			2,447		3			2,388		3			2,350		3			2,222		3
Non-investment grade fixed maturity securities			2,252		3			2,346		3			2,530		3			2,623		4			2,515		3
Equity securities:
Common stocks and mutual funds			37		—			37		—			62		—			134		—			187		—
Preferred stocks			273		—			236		—			237		1			165		—			88		—
Commercial mortgage loans			6,170		8			6,133		8			6,175		8			6,149		8			6,100		8
Restricted commercial mortgage loans related to securitization entities			161		—			175		—			181		—			188		—			201		—
Policy loans			1,568		2			1,567		2			1,584		2			1,506		2			1,501		2
Cash, cash equivalents and short-term investments			6,162		8			4,003		6			4,413		6			5,315		7			4,883		7
Securities lending			347		—			367		—			337		—			323		1			289		1
Other invested assets:	Limited partnerships		188		—			195		—			216		—			215		—			252		—
	Derivatives:
	Long-term care (LTC) forward starting swap—cash flow		629		1			768		1			423		1			948		1			639		1
	Other cash flow		8		—			8		—			8		—			9		—			6		—
	Equity index options—non-qualified		30		—			15		—			12		—			15		—			17		—
	Other non-qualified		445		1			534		1			416		—			512		1			470		—
	Trading portfolio		447		1			458		1			368		1			218		—			241		—
	Restricted other invested assets related to securitization entities		413		1			412		1			410		1			411		1			411		1
	Other		18		—			51		—			52		—			49		—			56		—

Total invested assets and cash		$	75,093		100	%	$	75,605		100	%	$	75,262		100	%	$	77,889		100	%	$	76,418		100	%

Public Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	14,785		34	%	$	15,057		33	%	$	14,920		33	%	$	15,520		33	%	$	15,599		34	%
AA			4,121		10			4,603		10			4,763		11			4,849		11			4,730		10
A			12,155		28			13,485		30			13,376		30			13,781		30			13,572		30
BBB			10,720		25			10,667		24			10,576		23			10,715		23			10,490		23
BB			1,200		3			1,234		3			1,276		3			1,385		3			1,361		3
B			63		—			50		—			68		—			76		—			76		—
CCC and lower			92		—			95		—			99		—			108		—			112		—

Total public fixed maturity securities		$	43,136		100	%	$	45,191		100	%	$	45,078		100	%	$	46,434		100	%	$	45,940		100	%

Private Fixed Maturity Securities—Credit Quality:
NRSRO⁽²⁾ Designation
AAA		$	1,531		10	%	$	1,725		11	%	$	1,641		11	%	$	1,509		10	%	$	1,564		10	%
AA			1,899		13			1,966		13			1,941		13			1,945		13			1,995		13
A			4,731		31			4,737		31			4,781		31			4,792		31			4,538		30
BBB			6,003		40			6,060		39			5,840		38			5,998		39			6,074		40
BB			777		5			839		5			973		6			910		6			792		5
B			104		1			114		1			101		1			126		1			95		1
CCC and lower			16		—			14		—			13		—			18		—			79		1

Total private fixed maturity securities		$	15,061		100	%	$	15,455		100	%	$	15,290		100	%	$	15,298		100	%	$	15,137		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 2015

Fixed Maturity Securities Summary

(amounts in millions)


	December 31, 2015					September 30, 2015					June 30, 2015					March 31, 2015					December 31, 2014
	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	$	6,203		11	%	$	5,913		10	%	$	5,721		9	%	$	6,132		10	%	$	6,000		10	%
State and political subdivisions		2,438		4			2,448		4			2,389		4			2,351		4			2,222		4
Foreign government		2,015		3			1,935		3			1,955		3			1,837		3			1,902		3
U.S. corporate		24,401		42			25,679		43			25,135		42			25,806		42			25,223		41
Foreign corporate		12,199		21			13,027		22			13,628		23			13,961		23			14,095		23
Residential mortgage-backed securities		5,101		9			5,118		8			5,085		9			5,153		8			5,228		9
Commercial mortgage-backed securities		2,559		4			2,587		4			2,582		4			2,690		4			2,702		4
Other asset-backed securities		3,281		6			3,939		6			3,873		6			3,802		6			3,705		6

Total fixed maturity securities	$	58,197		100	%	$	60,646		100	%	$	60,368		100	%	$	61,732		100	%	$	61,077		100	%

Corporate Bond Holdings—Industry Sector:
Investment Grade:
Finance and insurance	$	7,746		22	%	$	8,290		23	%	$	8,047		22	%	$	8,219		22	%	$	8,123		22	%
Utilities		4,453		13			4,618		12			4,568		12			4,788		13			4,683		13
Energy		3,839		11			4,249		11			4,403		12			4,555		12			4,517		12
Consumer—non-cyclical		4,619		13			4,647		13			4,504		12			4,614		12			4,580		12
Consumer—cyclical		2,119		6			2,288		6			2,319		6			2,361		6			2,343		6
Capital goods		2,361		7			2,461		7			2,434		7			2,417		7			2,410		7
Industrial		1,915		6			2,130		6			2,224		6			2,309		6			2,240		6
Technology and communications		2,872		8			3,095		8			3,107		9			3,091		8			3,024		8
Transportation		1,689		5			1,695		5			1,629		5			1,687		4			1,610		4
Other		3,049		9			3,213		9			3,356		9			3,508		10			3,732		10

Subtotal		34,662		100	%		36,686		100	%		36,591		100	%		37,549		100	%		37,262		100	%

Non-Investment Grade:
Finance and insurance		359		19	%		381		19	%		443		20	%		471		21	%		480		23	%
Utilities		83		4			67		3			68		3			67		3			84		5
Energy		348		18			400		20			409		19			363		16			261		13
Consumer—non-cyclical		229		12			230		11			257		12			262		12			229		11
Consumer—cyclical		82		4			98		5			99		5			117		5			91		4
Capital goods		193		10			204		10			234		11			236		11			214		10
Industrial		244		13			254		13			240		11			238		11			260		13
Technology and communications		309		16			293		14			336		15			365		16			354		17
Transportation		2		—			2		—			3		—			19		1			19		1
Other		89		4			91		5			83		4			80		4			64		3

Subtotal		1,938		100	%		2,020		100	%		2,172		100	%		2,218		100	%		2,056		100	%

Total	$	36,600		100	%	$	38,706		100	%	$	38,763		100	%	$	39,767		100	%	$	39,318		100	%

Fixed Maturity Securities—Contractual Maturity Dates:

Due in one year or less	$	1,744		3	%	$	2,075		4	%	$	2,003		3	%	$	1,830		3	%	$	2,020		3	%
Due after one year through five years		10,192		18			10,817		18			10,935		19			10,838		18			10,623		18
Due after five years through ten years		11,917		20			12,155		20			12,212		20			12,193		20			12,328		20
Due after ten years		23,403		40			23,955		40			23,678		39			25,226		41			24,471		40

Subtotal		47,256		81			49,002		82			48,828		81			50,087		82			49,442		81
Mortgage and asset-backed securities		10,941		19			11,644		18			11,540		19			11,645		18			11,635		19

Total fixed maturity securities	$	58,197		100	%	$	60,646		100	%	$	60,368		100	%	$	61,732		100	%	$	61,077		100	%

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

General Account GAAP Net Investment Income Yields

(amounts in millions)


	2015															2014
	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
GAAP Net Investment Income
Fixed maturity securities—taxable	$	634		$	647		$	645		$	632		$	2,558		$	658		$	643		$	658		$	639		$	2,598
Fixed maturity securities—non-taxable		3			3			3			3			12			3			3			3			3			12
Commercial mortgage loans		85			84			83			85			337			87			82			81			83			333
Restricted commercial mortgage loans related to securitization entities		4			3			3			4			14			3			3			4			4			14
Equity securities		4			3			4			4			15			3			3			4			4			14
Other invested assets		30			22			17			33			102			22			17			12			18			69
Limited partnerships		2			4			20			7			33			2			10			13			11			36
Restricted other invested assets related to securitization entities		2			1			1			1			5			2			1			1			1			5
Policy loans		36			33			35			33			137			34			32			32			31			129
Cash, cash equivalents and short-term investments		3			3			4			3			13			5			7			7			5			24

Gross investment income before expenses and fees		803			803			815			805			3,226			819			801			815			799			3,234
Expenses and fees		(22	)		(20	)		(22	)		(24	)		(88	)		(22	)		(23	)		(24	)		(23	)		(92	)

Net investment income	$	781		$	783		$	793		$	781		$	3,138		$	797		$	778		$	791		$	776		$	3,142

Annualized Yields
Fixed maturity securities—taxable		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%		4.7	%		4.6	%		4.8	%		4.7	%		4.7	%
Fixed maturity securities—non-taxable		3.5	%		3.5	%		3.5	%		3.5	%		3.5	%		3.5	%		3.4	%		3.5	%		3.7	%		3.5	%
Commercial mortgage loans		5.5	%		5.5	%		5.4	%		5.6	%		5.5	%		5.7	%		5.4	%		5.5	%		5.6	%		5.6	%
Restricted commercial mortgage loans related to securitization entities		9.5	%		6.4	%		7.2	%		8.2	%		8.0	%		5.8	%		6.6	%		6.7	%		7.0	%		6.6	%
Equity securities		5.1	%		4.0	%		5.6	%		6.1	%		5.2	%		4.6	%		4.4	%		5.5	%		5.2	%		5.0	%
Other invested assets		27.4	%		22.2	%		24.2	%		60.6	%		30.7	%		37.1	%		27.7	%		18.7	%		26.3	%		27.3	%
Limited partnerships⁽¹⁾		4.2	%		7.8	%		37.0	%		12.0	%		15.5	%		3.1	%		15.3	%		19.6	%		16.1	%		13.6	%
Restricted other invested assets related to securitization entities		2.0	%		1.0	%		1.0	%		1.0	%		1.3	%		2.1	%		1.0	%		1.0	%		1.0	%		1.3	%
Policy loans		9.2	%		8.4	%		9.1	%		8.8	%		8.9	%		9.0	%		8.5	%		8.7	%		8.6	%		8.7	%
Cash, cash equivalents and short-term investments		0.2	%		0.3	%		0.3	%		0.2	%		0.3	%		0.5	%		0.8	%		0.7	%		0.5	%		0.6	%

Gross investment income before expenses and fees		4.6	%		4.6	%		4.6	%		4.6	%		4.6	%		4.7	%		4.6	%		4.7	%		4.7	%		4.7	%
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		4.5	%		4.5	%		4.5	%		4.5	%		4.5	%		4.6	%		4.5	%		4.6	%		4.6	%		4.6	%

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 49 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 2015

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

(amounts in millions)


	2015															2014
	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	$	7		$	(2	)	$	—		$	—		$	5		$	1		$	5		$	(6	)	$	(9	)	$	(9	)
U.S. government, agencies and government-sponsored enterprises		1			—			—			1			2			1			—			2			—			3
Foreign corporate		(4	)		(1	)		(1	)		(4	)		(10	)		1			2			13			(3	)		13
Foreign government		—			—			1			—			1			1			—			—			—			1
Tax-exempt		—			—			—			—			—			—			—			—			(1	)		(1	)
Mortgage-backed securities		—			(2	)		1			—			(1	)		—			(1	)		—			—			(1	)
Asset-backed securities		(1	)		(1	)		—			—			(2	)		—			—			—			—			—
Equity securities		—			2			8			5			15			1			2			6			1			10
Foreign exchange		1			1			—			1			3			—			—			1			—			1

Total net realized gains (losses) on available-for-sale securities		4			(3	)		9			3			13			5			8			16			(12	)		17

Impairments:
Alt-A residential mortgage-backed securities		—			—			—			—			—			—			(1	)		—			—			(1	)
Financial hybrid securities		—			—			—			—			—			—			(3	)		—			—			(3	)
Corporate fixed maturity securities		(9	)		(4	)		—			—			(13	)		—			—			—			—			—
Commercial mortgage loans		—			(1	)		—			(2	)		(3	)		—			—			(1	)		(1	)		(2	)
Other asset-backed securities		—			(1	)		—			—			(1	)		—			—			—			—			—

Total impairments		(9	)		(6	)		—			(2	)		(17	)		—			(4	)		(1	)		(1	)		(6	)

Net unrealized gains (losses) on trading securities		(6	)		8			(11	)		4			(5	)		10			3			5			8			26
Derivative instruments		2			(34	)		4			(21	)		(49	)		(24	)		(25	)		(4	)		(14	)		(67	)
Limited partnerships		—			—			—			—			—			—			—			(1	)		—			(1	)
Commercial mortgage loans held-for-sale market valuation allowance		1			—			2			1			4			2			2			2			2			8
Contingent purchase price valuation change		—			2			—			—			2			—			(1	)		—			—			(1	)
Net gains (losses) related to securitization entities		(2	)		—			1			5			4			1			(1	)		6			4			10

Net investment gains (losses), net of taxes		(10	)		(33	)		5			(10	)		(48	)		(6	)		(18	)		23			(13	)		(14	)
Adjustment for DAC and other intangible amortization and certain benefit reserves, net of taxes		8			6			5			4			23			1			6			1			1			9
Adjustment for net investment (gains) losses attributable to noncontrolling interests, net of taxes		2			5			(6	)		5			6			1			2			(4	)		1			—

Net investment gains (losses), net	$	—		$	(22	)	$	4		$	(1	)	$	(19	)	$	(4	)	$	(10	)	$	20		$	(11	)	$	(5	)

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

Reconciliations of Non-GAAP Measures

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Reconciliation of Operating ROE

(amounts in millions)


Twelve Month Rolling Average ROE	Twelve months ended
	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended⁽¹⁾	$	(615	)	$	(1,083	)	$	(1,643	)	$	(1,274	)	$	(1,244	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	10,281		$	10,564		$	10,958		$	11,288		$	11,532
GAAP Basis ROE^(1)/(2)		-6.0	%		-10.3	%		-15.0	%		-11.3	%		-10.8	%

Operating ROE
Net operating income (loss) for the twelve months ended⁽¹⁾	$	255		$	(78	)	$	(465	)	$	(430	)	$	(398	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)⁽²⁾	$	10,281		$	10,564		$	10,958		$	11,288		$	11,532
Operating ROE^(1)/(2)		2.5	%		-0.7	%		-4.2	%		-3.8	%		-3.5	%

Quarterly Average ROE	Three months ended
	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
GAAP Basis ROE
Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended⁽³⁾	$	(292	)	$	(284	)	$	(193	)	$	154		$	(760	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	9,958		$	10,241		$	10,507		$	10,555		$	10,854
Annualized GAAP Quarterly Basis ROE^(3)/(4)		-11.7	%		-11.1	%		-7.3	%		5.8	%		-28.0	%

Operating ROE
Net operating income (loss) for the period ended⁽³⁾	$	(82	)	$	64		$	119		$	154		$	(415	)
Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive income (loss)⁽⁴⁾	$	9,958		$	10,241		$	10,507		$	10,555		$	10,854
Annualized Operating Quarterly Basis ROE^(3)/(4)		-3.3	%		2.5	%		4.5	%		5.8	%		-15.3	%

Non-GAAP Definition for Operating ROE

The company references the non-GAAP financial measure entitled “operating return on equity” or “operating ROE.” The company defines operating ROE as net operating income (loss) divided by average ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss) in average ending Genworth Financial, Inc.’s stockholders’ equity. Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE 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), 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 2015

Reconciliation of Core Yield


		2015															2014
	(Assets—amounts in billions)	4Q			3Q			2Q			1Q			Total			4Q			3Q			2Q			1Q			Total
	Reported—Total Invested Assets and Cash	$	75.1		$	75.6		$	75.3		$	77.9		$	75.1		$	76.4		$	74.8		$	74.9		$	72.8		$	76.4
	Subtract:
	Securities lending		0.3			0.4			0.3			0.3			0.3			0.3			0.3			0.3			0.3			0.3
	Unrealized gains (losses)		4.2			5.4			4.9			7.8			4.2			6.6			5.3			5.5			4.2			6.6
	Derivative counterparty collateral		—			—			—			—			—			—			0.5			0.4			0.4			—

	Adjusted end of period invested assets and cash	$	70.6		$	69.8		$	70.1		$	69.8		$	70.6		$	69.5		$	68.7		$	68.7		$	67.9		$	69.5

(A)	Average Invested Assets and Cash Used in Reported Yield Calculation	$	70.2		$	70.0		$	70.0		$	69.7		$	70.0		$	69.1		$	68.7		$	68.3		$	67.9		$	68.5
	Subtract:
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		0.2			0.2			0.2			0.2			0.2			0.2			0.2			0.2			0.2			0.2

(B)	Average Invested Assets and Cash Used in Core Yield Calculation		70.0			69.8			69.8			69.5			69.8			68.9			68.5			68.1			67.7			68.3
	Subtract:
	Portfolios supporting floating products and non-recourse funding obligations⁽²⁾		3.5			3.5			3.6			3.7			3.6			3.9			4.0			4.2			4.3			4.1

(C)	Average Invested Assets and Cash Used in Core Yield (excl. Floating and Non-Recourse Funding) Calculation	$	66.5		$	66.3		$	66.2		$	65.8		$	66.2		$	65.0		$	64.5		$	63.9		$	63.4		$	64.2

	(Income—amounts in millions)

(D)	Reported—Net Investment Income	$	781		$	783		$	793		$	781		$	3,138		$	797		$	778		$	791		$	776		$	3,142
	Subtract:
	Bond calls and commercial mortgage loan prepayments		18			12			17			14			61			18			17			7			10			52
	Other non-core items⁽³⁾		(2	)		1			(4	)		7			2			8			(22	)		8			(7	)		(13	)
	Restricted commercial mortgage loans and other invested assets related to securitization entities⁽¹⁾		3			2			2			3			10			2			3			3			3			11

(E)	Core Net Investment Income		762			768			778			757			3,065			769			780			773			770			3,092
	Subtract:
	Investment income from portfolios supporting floating products and non-recourse funding obligations⁽²⁾		16			21			26			20			83			21			22			23			21			87

(F)	Core Net Investment Income (excl. Floating and Non-Recourse Funding)	$	746		$	747		$	752		$	737		$	2,982		$	748		$	758		$	750		$	749		$	3,005

(D) / (A)	Reported Yield		4.45	%		4.47	%		4.53	%		4.48	%		4.48	%		4.61	%		4.53	%		4.63	%		4.57	%		4.59	%
(E) / (B)	Core Yield		4.35	%		4.40	%		4.46	%		4.36	%		4.39	%		4.46	%		4.55	%		4.54	%		4.55	%		4.52	%
(F) / (C)	Core Yield (excl. Floating and Non-Recourse Funding)		4.49	%		4.51	%		4.54	%		4.48	%		4.51	%		4.60	%		4.70	%		4.69	%		4.73	%		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⁾	Includes cost basis adjustments on structured securities and various other immaterial items.

Corporate Information

GENWORTH FINANCIAL, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

Financial Strength Ratings As Of February 3, 2016


Company	Standard & Poor’s Financial Services LLC (S&P)	Moody’s Investors Service, Inc. (Moody’s)	A.M. Best Company, Inc. (A.M. Best)
Genworth Mortgage Insurance Corporation	BB+	Ba1	Not rated
Genworth Financial Mortgage Insurance Company Canada⁽¹⁾	A+	Not rated	Not rated
Genworth Financial Mortgage Insurance Pty Limited (Australia)⁽²⁾	A+	A3	Not rated
Genworth Financial Mortgage Insurance Limited (Europe)	BB-	Not rated	Not rated
Genworth Life Insurance Company	BBB-	Baa1	A-
Genworth Life and Annuity Insurance Company	BBB-	Baa1	A-
Genworth Life Insurance Company of New York	BBB-	Baa1	A-

The S&P, Moody’s, A.M. Best, Dominion Bond Rating Service (DBRS) and Fitch Rating Service (Fitch) 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.

S&P states that 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 within a major rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “A+,” “BBB-,” “BB+” and “BB-” ratings are the fifth-, tenth-, eleventh- and thirteenth-highest of S&P’s 21 ratings categories.

Moody’s states that insurance companies rated “A” (Good) offer good financial security, that insurance companies rated “Baa” (Adequate) offer adequate financial security and that insurance companies rated “Ba” (Questionable) offer questionable financial security. The “A” (Good), “Baa” (Adequate) and “Ba” (Questionable) ranges are the third-, fourth- 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 group, 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,” “Baa1” and “Ba1” ratings are the seventh-, eighth- and eleventh-highest, respectively, of Moody’s 21 ratings categories.

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 fourth-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.

The Australian mortgage insurance subsidiary also solicits a rating from Fitch. Fitch states that “A” (Strong) rated insurance companies are viewed as possessing strong capacity to meet policyholder and contract obligations. The “A” rating category is the third-highest of nine financial strength rating categories, which range from “AAA” to “C.” The symbol (+) or (-) may be appended to a rating to indicate the relative position of a credit within a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “B” category. Accordingly, the “A+” rating is the fifth-highest of Fitch’s 21 ratings categories.

The company also solicits a rating from HR Ratings on a local scale for Genworth Seguros de Credito a la Vivienda S.A. de C.V., its Mexican mortgage insurance subsidiary, with a short-term rating of “HR1” and long-term rating of “HR AA.” For short-term ratings, HR Ratings states that “HR1” rated companies are viewed as exhibiting high capacity for timely payment of debt obligations in the short-term and maintain low credit risk. The “HR1” short-term rating category is the highest of six short-term rating categories, which range from “HR1” to “HR D.” For long-term ratings, HR Ratings states that “HR AA” rated companies are viewed as having high credit quality and offer high safety for timely payment of debt obligations and maintain low credit risk under adverse economic scenarios. The “HR AA” long-term rating is the second-highest of HR Rating’s eight long-term rating categories, which range from “HR AAA” to “HR D.”

S&P, Moody’s, A.M. Best, DBRS, Fitch and HR Ratings 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.

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

⁽²⁾	Genworth Financial Mortgage Insurance Pty Limited (Australia) is also rated “A+” by Fitch.

GENWORTH FINANCIAL INC - FORM 8-K - EX-99.2 - February 4, 2016

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