UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
October 29, 2015
Date of Report
(Date of
earliest event reported)
GENWORTH FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-32195 |
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80-0873306 |
(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
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6620 West Broad Street, Richmond, VA |
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23230 |
(Address of principal executive offices) |
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(Zip Code) |
(804) 281-6000
(Registrants telephone number, including area code)
N/A
(Former name or
former address, if changed since last report)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 |
Results of Operations and Financial Condition. |
On October 29, 2015, Genworth
Financial, Inc. issued (1) a press release announcing its financial results for the quarter ended September 30, 2015, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (2) a financial
supplement for the quarter ended September 30, 2015, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information contained in this Current Report on Form 8-K (including the exhibits) is being furnished and shall not be deemed
filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that Section. The information contained in this Current Report on
Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such
filing.
Item 9.01 |
Financial Statements and Exhibits. |
The following materials are furnished as exhibits to
this Current Report on Form 8-K:
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Exhibit Number |
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Description of Exhibit |
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99.1 |
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Press Release dated October 29, 2015. |
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99.2 |
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Financial Supplement for the quarter ended September 30, 2015. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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GENWORTH FINANCIAL, INC. |
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Date: October 29, 2015 |
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By: |
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/s/ Kelly L. Groh |
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Kelly L. Groh |
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Executive Vice President and Chief Financial Officer |
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(Principal Financial Officer) |
3
Exhibit Index
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Exhibit Number |
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Description of Exhibit |
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99.1 |
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Press Release dated October 29, 2015. |
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99.2 |
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Financial Supplement for the quarter ended September 30, 2015. |
4
Exhibit 99.1
Genworth Financial Announces Third Quarter 2015 Results
Net Operating Income Of $0.13 Per Share; Net Loss Per Share Of $0.57 Driven By Planned Life Block Sale
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U.S. MI Enhanced PMIERs Compliance With Execution Of Third Reinsurance Transaction |
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On Track To Close Sale Of Lifestyle Protection Insurance Business By The End Of 2015 |
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Life Block Sale Expected To Close In The First Quarter Of 2016 |
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Aggregate LTC Claim Reserve Experience In Line With Expectations |
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Sequential Results Reflect Seasonally Higher Losses In Canada And U.S. Mortgage Insurance; Adverse Equity Markets And Higher Legal Accruals And Expenses In Corporate And Other Division; And Net Favorable Mortality In
U.S. Life Insurance Division |
Richmond, VA (October 29, 2015) Genworth Financial, Inc. (NYSE: GNW) today reported results for the
period ended September 30, 2015. The company reported a net loss1 of $284 million, or $0.57 per diluted share, compared with a net loss of $844 million, or $1.70 per diluted share, in the
third quarter of 2014. The net loss in the quarter includes an after-tax loss of $296 million, or $0.59 per diluted share, related to a write-off of deferred acquisition costs (DAC) from the previously announced life block sale. Net operating income2 for the third quarter of 2015 was $64 million, or $0.13 per diluted share, compared with a net operating loss of $323 million, or $0.65 per diluted share, in the third quarter of 2014.
Strategic Update
As of September 30, 2015,
the U.S. mortgage insurance (MI) business would be compliant with the private mortgage insurer eligibility requirements (PMIERs) capital requirements, with a prudent buffer, when including:
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An excess of loss reinsurance transaction on its 2015 book of business which has been executed with a panel of reinsurers, and would be effective as of October 1, 2015, that is expected to provide approximately
$225 million of PMIERs capital credit as of December 31, 2015. This transaction, which is pending approval from the government sponsored enterprises (GSEs), has similar terms and conditions as the two recent transactions approved by the
GSEs. |
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An internal legal entity restructuring completed on October 1, 2015. |
1 |
Unless otherwise stated, all references in this press release to net loss, net loss per share, book value, book value per share and stockholders equity should be read as net loss available to Genworths
common stockholders, net loss available to Genworths common stockholders per share, book value available to Genworths common stockholders, book value available to Genworths common stockholders per share and stockholders
equity available to Genworths common stockholders, respectively. |
2 |
This is a financial measure not calculated based on U.S. Generally Accepted Accounting Principles (Non-GAAP). See the Use of Non-GAAP Measures section of this press release for additional information. |
1
The company has generated or expects to generate a total of approximately $525 million in PMIERs capital credit
year-to-date from three reinsurance transactions covering the 2009 through 2015 books of business in addition to the intercompany sale of its ownership of affiliated preferred securities of approximately $200 million. The company will work to
maintain a prudent level of capital in excess of the PMIERs capital requirements.
The company continues to make progress on the completion of the planned
sale of its lifestyle protection insurance business. The transaction is expected to generate approximately $400 million in net proceeds and close by the end of 2015, subject to customary conditions, including requisite regulatory approvals.
In September 2015, the company announced it had agreed to sell certain blocks of its term life insurance to Protective Life Insurance Company which is
expected to generate initial capital of approximately $100 to $150 million in aggregate to Genworth. The transaction is expected to utilize all of the net operating losses in the U.S. life insurance companies resulting in expected intercompany tax
payments over time to the holding company and other entities for the use of tax benefits. The transaction is expected to close in the first quarter of 2016, subject to customary conditions, including requisite regulatory approvals.
In October 2015, the company announced it had entered into an agreement to sell its European mortgage insurance business to AmTrust Financial Services, Inc.
that is expected to result in net proceeds of approximately $55 million. These proceeds will provide additional capital credit to Genworth Mortgage Insurance Corporation under PMIERs. Additionally, the company expects to record an after-tax GAAP
loss of approximately $140 million related to the sale in the fourth quarter of 2015. The transaction is expected to close in the first quarter of 2016 and is subject to customary conditions, including requisite regulatory approvals.
The company has taken and will continue to take steps to bring cash expenses in line with near-term sales levels. The company now expects to achieve its
annualized cash savings target of $100 million pre-tax or more in the first half of 2016.
Our Global Mortgage Insurance Division is performing well
with strong loss ratios and U.S. MI made substantial progress towards PMIERs compliance. Long term care insurance remains challenged, but we continue to receive significant premium rate increases and claims experience remained in line with our
expectations, said Tom McInerney, President and CEO. We are making progress on our strategic priorities and will continue to explore strategic options to accelerate our turnaround.
2
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Consolidated Net Loss & Net Operating Income (Loss)
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Three months ended September 30 (Unaudited) |
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2015 |
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2014 |
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(Amounts in millions, except per
share) |
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Total |
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Per diluted share |
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Total |
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Per diluted share |
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Total % change |
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Net loss available to Genworths common stockholders |
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$ |
(284 |
) |
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$ |
(0.57 |
) |
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$ |
(844 |
) |
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$ |
(1.70 |
) |
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66 |
% |
Net operating income (loss) |
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$ |
64 |
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$ |
0.13 |
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$ |
(323 |
) |
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$ |
(0.65 |
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120 |
% |
Weighted average diluted shares3 |
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497.4 |
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496.6 |
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Three months ended September 30 (Unaudited) |
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2015 |
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2014 |
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Book value per share |
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$ |
27.29 |
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$ |
30.54 |
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Book value per share, excluding accumulated other comprehensive income (loss) |
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$ |
20.30 |
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$ |
22.62 |
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Net investment losses, net of taxes and other adjustments, were $22 million in the quarter, compared to net investment gains
of $4 million in the prior quarter and net investment losses of $10 million in the prior year. Total impairments, net of tax, were $6 million in the quarter, compared to none in the prior quarter and $4 million in the prior year.
Net investment income decreased to $783 million, compared to $793 million in the prior quarter primarily from lower limited partnership income. The reported
yield for the current quarter was 4.46 percent. The core yield2 was 4.39 percent, down from the prior quarter.
Net operating income (loss) results are summarized in the table below:
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Net Operating Income (Loss) |
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(Amounts in
millions) |
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Q3 15 |
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Q2 15 |
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Q3 14 |
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Global Mortgage Insurance Division |
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$ |
91 |
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$ |
110 |
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$ |
85 |
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U.S. Life Insurance Division |
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40 |
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57 |
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(322 |
) |
Corporate and Other Division |
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(67 |
) |
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(48 |
) |
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(86 |
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Total Net Operating Income (Loss) |
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$ |
64 |
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$ |
119 |
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$ |
(323 |
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Net operating income (loss) represents net operating income (loss) from continuing operations excluding 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 other adjustments, net of taxes. A reconciliation
of net operating income (loss) of segments and Corporate and Other activities to net loss is included at the end of this press release.
3 |
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 months ended September 30, 2015 and 2014, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended
September 30, 2015 and 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.3 million and 5.4 million, respectively, would have been antidilutive to the calculation. If the
company had not incurred a loss from continuing operations for the three months ended September 30, 2015 and 2014, dilutive potential weighted-average common shares outstanding would have been 498.7 million and 502.0 million,
respectively. Since it had net operating income for the three months ended September 30, 2015, the company used 498.7 million diluted weighted-average common shares outstanding in the calculation of diluted net operating income per common
share. |
3
Unless specifically noted in the discussion of results for the International Mortgage Insurance segment,
references to percentage changes exclude the impact of translating foreign denominated activity into U.S. dollars (foreign exchange). Percentage changes, which include the impact of foreign exchange, are found in a table at the end of this press
release. The impact of foreign exchange on results in the third quarter of 2015 was an unfavorable $13 million versus the prior year.
Global Mortgage
Insurance Division
Global Mortgage Insurance Division had net operating income of $91 million, compared with $110 million in the prior quarter and
$85 million a year ago.
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Global Mortgage Insurance Division |
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Net Operating Income (Loss) |
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(Amounts in
millions) |
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Q3 15 |
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Q2 15 |
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Q3 14 |
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International Mortgage Insurance |
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Canada |
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$ |
38 |
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$ |
37 |
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$ |
46 |
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Australia |
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21 |
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29 |
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48 |
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Other Countries |
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(5 |
) |
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(5 |
) |
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(7 |
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Total International Mortgage Insurance |
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54 |
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61 |
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87 |
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U.S. Mortgage Insurance |
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37 |
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49 |
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(2 |
) |
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Total Global Mortgage Insurance |
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$ |
91 |
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$ |
110 |
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$ |
85 |
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Sales |
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(Amounts in billions) |
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Q3 15 |
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Q2 15 |
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Q3 14 |
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International Mortgage Insurance |
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Flow |
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Canada |
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$ |
6.6 |
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$ |
5.4 |
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$ |
6.8 |
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Australia |
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6.3 |
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6.5 |
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8.1 |
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Other Countries |
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0.6 |
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0.5 |
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0.4 |
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Bulk |
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Canada |
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4.8 |
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3.3 |
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5.6 |
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Australia |
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1.7 |
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1.0 |
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U.S. Mortgage Insurance |
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Primary Flow |
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9.3 |
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8.2 |
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7.5 |
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Canada Mortgage Insurance
Canada reported net operating income of $38 million versus $37 million in the prior quarter and $46 million in the prior year. The loss ratio in the quarter
was 21 percent, up four points from the prior quarter driven by a seasonal increase in new delinquencies, net of cures, and flat compared to the prior year. Results included lower expenses versus the prior quarter and unfavorable foreign exchange
versus the prior year of $7 million. Flow new insurance written (NIW) was up 26 percent4 sequentially from a seasonally larger originations market and up 15 percent4 year over year primarily from an increase in market penetration. In addition, the company completed several bulk transactions in the quarter of approximately $4.8 billion in total, consisting of low
loan-to-value prime loans.
4 |
Percent change excludes the impact of foreign exchange. |
4
Australia Mortgage Insurance
Australia reported net operating income of $21 million versus $29 million in the prior quarter and $48 million in the prior year. The loss ratio in the quarter
was 29 percent, up one point sequentially and eight points from the prior year. Results in the quarter include actuarial updates to earned premiums and loss reserves which combined had a negligible impact on earnings, but did unfavorably impact the
loss ratio by approximately seven points. New delinquencies were down 10 percent sequentially and cures were up 11 percent sequentially from normal seasonal variation, including improved performance in Queensland and Western Australia. Results
versus the prior quarter were lower by $6 million from the companys further sell down of approximately 14 percent of its ownership in the Australia business in May 2015, less favorable tax benefits and unfavorable foreign exchange. Results
versus the prior year were also impacted by less favorable tax benefits of $15 million, an unfavorable $8 million related to the further sell down in May 2015 and unfavorable foreign exchange of $6 million. Flow NIW was up two percent4 sequentially and down two percent4 year over year.
Other Countries Mortgage Insurance
Other
Countries had a net operating loss of $5 million, flat to the prior quarter and down from a net operating loss of $7 million in the prior year.
U.S. Mortgage Insurance
U.S. MI net operating
income was $37 million, compared with net operating income of $49 million in the prior quarter and a net operating loss of $2 million in the prior year. The prior year included an unfavorable impact of $34 million related to loss mitigation
settlements. The loss ratio in the current quarter was 43 percent, up 10 points sequentially reflecting normal seasonal variation in new flow delinquencies which increased approximately 13 percent from the prior quarter and decreased approximately
11 percent from the prior year, reflecting the continued burn through of delinquencies from the 2005 to 2008 book years. Results versus the prior year also reflected lower net investment income, primarily related to an approximately $8 million
reduction from the affiliated preferred securities that were transferred to the holding company in July 2015.
Flow NIW of $9.3 billion increased 13
percent from the prior quarter from a larger purchase originations market and increased 24 percent versus the prior year primarily from a larger purchase originations market and higher refinance activity. During the third quarter, the company
increased its single premium lender paid new insurance written and continues its selective participation in this market. Future volumes of this product will vary in part depending on the companys evaluation of the risk return profile of
these transactions.
5
U.S. Life Insurance Division
U.S. Life Insurance Division net operating income was $40 million, compared with net operating income of $57 million in the prior quarter and a net operating
loss of $322 million a year ago.
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U.S. Life Insurance Division |
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Net Operating Income (Loss) |
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(Amounts in
millions) |
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Q3 15 |
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Q2 15 |
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Q3 14 |
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U.S. Life Insurance |
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Long Term Care Insurance |
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$ |
(10 |
) |
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$ |
10 |
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$ |
(361 |
) |
Life Insurance |
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|
31 |
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22 |
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13 |
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Fixed Annuities |
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19 |
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25 |
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26 |
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Total U.S. Life Insurance |
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|
40 |
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|
57 |
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(322 |
) |
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Total U.S. Life Insurance |
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$ |
40 |
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$ |
57 |
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$ |
(322 |
) |
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Sales |
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(Amounts in millions) |
|
Q3 15 |
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Q2 15 |
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Q3 14 |
|
U.S. Life Insurance |
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Long Term Care Insurance |
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Individual |
|
$ |
7 |
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$ |
8 |
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|
$ |
28 |
|
Group |
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|
1 |
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|
1 |
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|
1 |
|
Life Insurance |
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Term Life |
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|
7 |
|
|
|
9 |
|
|
|
13 |
|
Universal Life |
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|
2 |
|
|
|
4 |
|
|
|
11 |
|
Linked Benefits |
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|
3 |
|
|
|
2 |
|
|
|
4 |
|
Fixed Annuities |
|
|
260 |
|
|
|
224 |
|
|
|
371 |
|
Long Term Care Insurance
Long term care insurance (LTC) had a net operating loss of $10 million, compared with net operating income of $10 million in the prior quarter and a net
operating loss of $361 million in the prior year. Results in the quarter reflected $21 million of after-tax unfavorable items, due largely to corrections to reinsurance, premium taxes and group LTC reserves. The current quarter included favorable
mortality on existing claims versus the prior year, unfavorable severity given the mix of new claims with a higher average reserve versus the prior year and less favorable benefits from reinsurance versus both the prior quarter and prior year.
Results in the prior quarter included net favorable items of $12 million after-tax while results in the prior year included $380 million after-tax of unfavorable items. The loss ratio in the current quarter was 76 percent. Given that experience in
aggregate included in this years claim reserves review was in line with expectations, the company made no significant adjustments in the current quarter to its assumptions and methodologies related to its LTC claim reserves.
Results for the quarter included a favorable impact from higher premiums and reduced benefit options of $19 million after-tax versus the prior quarter and $16
million after-tax versus the prior year related to premium increases from in force rate actions approved and implemented to date.
Individual LTC sales of
$7 million were lower than the prior quarter and the prior year. Sales are expected to continue at low levels in the near term due to the 2014 introduction of a higher priced LTC product and lower ratings, but build over time as new products and
distribution strategies are introduced.
6
Life Insurance
Life insurance net operating income was $31 million, compared with $22 million in the prior quarter and $13 million in the prior year. Results in the quarter
included favorable mortality versus both the prior quarter and prior year in addition to higher reinsurance expenses versus the prior year. Results in the prior year reflected $10 million of net unfavorable items. Sales of $12 million decreased
compared to the prior quarter and the prior year.
Fixed Annuities
Fixed annuities net operating income was $19 million, compared with $25 million in the prior quarter and $26 million in the prior year. Results in the quarter
reflected unfavorable impacts from mortality and lower limited partnership income versus both the prior quarter and prior year. Sales in the quarter totaled $260 million, up sequentially and down versus the prior year.
Corporate and Other Division
Corporate and Other
Division net operating loss was $67 million, compared with $48 million in the prior quarter and $86 million in the prior year.
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Corporate and Other Division |
|
|
|
|
|
|
|
|
|
Net Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
(Amounts in
millions) |
|
Q3 15 |
|
|
Q2 15 |
|
|
Q3 14 |
|
Runoff |
|
$ |
(4 |
) |
|
$ |
9 |
|
|
$ |
5 |
|
Corporate and Other |
|
|
(63 |
) |
|
|
(57 |
) |
|
|
(91 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Corporate and Other |
|
$ |
(67 |
) |
|
$ |
(48 |
) |
|
$ |
(86 |
) |
|
|
|
|
|
|
|
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|
|
Runoff net operating loss was $4 million, compared with net operating income of $9 million in the prior quarter and net
operating income of $5 million in the prior year reflecting unfavorable equity market performance versus the prior quarter and prior year and lower limited partnership income versus the prior quarter. Results in the prior year also included a
favorable impact from refinement of DAC assumptions related to the companys annual review of assumptions in variable annuity products.
Corporate
and Other net operating loss was $63 million, compared with $57 million in the prior quarter and $91 million in the prior year. Results in the current quarter included higher legal accruals and expenses of $17 million after-tax. Results versus the
prior year reflected less favorable taxes.
7
Capital & Liquidity
Genworth maintains solid capital positions in its operating subsidiaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Capital & Liquidity Metrics |
|
|
|
|
|
|
|
|
|
(Dollar amounts in millions) |
|
Q3 15 |
|
|
Q2 15 |
|
|
Q3 14 |
|
Canada MI |
|
|
|
|
|
|
|
|
|
|
|
|
Minimum Capital Test (MCT) Ratio5 |
|
|
227 |
% |
|
|
231 |
% |
|
|
224 |
% |
Australia MI |
|
|
|
|
|
|
|
|
|
|
|
|
Prescribed Capital Amount (PCA) Ratio5 |
|
|
167 |
% |
|
|
164 |
% |
|
|
156 |
% |
U.S. MI |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Risk-To-Capital Ratio5 |
|
|
14.3:1 |
|
|
|
13.7:1 |
|
|
|
15.4:1 |
|
GMICO Risk-To-Capital Ratio5 |
|
|
14.3:1 |
|
|
|
13.5:1 |
|
|
|
14.8:1 |
|
U.S. Life Companies |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Risk-Based Capital (RBC) Ratio5 |
|
|
445 |
% |
|
|
455 |
% |
|
|
448 |
% |
Unassigned Surplus5 |
|
$ |
75 |
|
|
$ |
97 |
|
|
$ |
291 |
|
Holding Company Cash6 and Liquid Assets7 |
|
$ |
983 |
|
|
$ |
1,154 |
|
|
$ |
1,138 |
|
Key Points
|
|
|
$102 million of dividends from the operating subsidiaries were paid to the holding company during the third quarter in addition to the remaining $50 million in net proceeds related to the sale of 92.3 million
shares of the Australia MI business in May 2015; |
|
|
|
In July 2015, approximately $200 million of cash from Genworth Holdings, Inc. was paid to U.S. MI in exchange for the business ownership interest in affiliated preferred securities; |
|
|
|
Unassigned surplus and RBC ratio declined versus the prior quarter primarily from unfavorable equity market impacts in runoff and lower LTC earnings, partially offset by favorable taxes; |
|
|
|
The holding company ended the third quarter with a buffer of approximately $490 million in excess of one and a half times annual debt service and restricted cash; |
|
|
|
The holding company targets maintaining cash balances of at least one and a half times its annual debt service expense plus a risk buffer of $350 million; and |
|
|
|
A $90 million reduction in surplus occurred in U.S. MI related to the anticipated sale of the European MI business, increasing the consolidated risk-to-capital ratio by less than one point. |
5 |
Company estimate for the third quarter of 2015, due to timing of the filing of statutory statements. |
6 |
Holding company cash & liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc. |
7 |
Comprises cash and cash equivalents of $733 million, $904 million and $988 million, respectively, and U.S. government bonds of $250 million, $250 million and $150 million, respectively, as of September 30,
2015, June 30, 2015 and September 30, 2014. |
8
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company committed to helping families become more financially secure,
self-reliant and prepared for the future. Genworth has leadership positions in mortgage insurance and long term care insurance and product offerings in life insurance and fixed annuities that assist consumers in solving their home ownership,
insurance and retirement needs. To help families start the talk about their futures and long term care planning, Genworth recently completed the first stage of its national #LetsTalk Tour to encourage conversations and information
sharing. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are
encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the Investors section of genworth.com. From time to time,
Genworths publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found
at http://genworth.ca and http://www.genworth.com.au.
Conference Call and Financial Supplement Information
This press release and the third quarter 2015 financial supplement are now posted on the companys website. Additional information regarding business
results and strategic update will be posted on the companys website, http://investor.genworth.com, by 7:30 a.m. on October 30, 2015. Investors are encouraged to review these materials.
Genworth will conduct a conference call on October 30, 2015 at 8:00 a.m. (ET) to discuss third quarter 2015 results and provide an update on strategic
priorities. The conference call will be accessible via telephone and the Internet. The dial-in number for the conference call is 877 888.4034 or 913 489.5101 (outside the U.S.); conference ID # 726558. To participate in the call by webcast, register
at http://investor.genworth.com at least 15 minutes prior to the webcast to download and install any necessary software.
Replays of the call will
be available through November 13, 2015 at 888 203.1112 or 719 457.0820 (outside the U.S.); conference ID # 726558. The webcast will also be archived on the companys website.
9
Use of Non-GAAP Measures
This press release includes the non-GAAP financial measures entitled net operating income (loss) and net operating income (loss) per common
share. Net operating income (loss) per common share is derived from 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 companys segments and Corporate and Other activities. A component of the
companys 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 companys 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 companys 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 companys opinion, they are not indicative of overall operating trends.
While
some of these items may be significant components of net income (loss) available to Genworths 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 Genworths common stockholders or net income (loss) available to Genworths common stockholders per common share on a basic and diluted basis determined in accordance with GAAP. In addition, the companys
definition of net operating income (loss) may differ from the definitions used by other companies.
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.
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 Limiteds 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. 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.
10
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 second quarter of 2015, the
company recorded a $2 million after-tax expense 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 item. The company
recognized a tax charge of $7 million in the third quarter of 2015 from potential business portfolio changes related to its mortgage insurance business in Europe.
The tables at the end of this press release reflect 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 companys segments and Corporate and Other activities to net income (loss) available to Genworths common stockholders for the three months ended September 30, 2015
and 2014, as well as for the three months ended June 30, 2015.
Adjustments to reconcile net income (loss) attributable to Genworths common
stockholders and net operating income (loss) assume a 35 percent 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.
This press release includes 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 those items that are not recurring in nature. 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. In addition, the companys definition of core yield may differ from the definitions used by other companies. A reconciliation of core yield to reported GAAP yield is included
in a table at the end of this press release.
Results of Operations by Segment
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 segments 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.
Definition of Selected Operating
Performance Measures
The company reports 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
11
insurance products; (3) annualized first-year deposits plus five percent of excess deposits for universal and term universal life insurance products; (4) 10 percent 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 companys 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 companys revenues or profitability during that period.
Management regularly monitors and reports insurance in force
and risk in force. Insurance in force for the international mortgage and U.S. mortgage insurance businesses is a measure of the aggregate face value of outstanding insurance policies as of the respective reporting date. For risk in force in the
international mortgage insurance business, the company has computed an effective risk in force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property.
Effective risk in force has been calculated by applying to insurance in force a factor of 35 percent that represents the highest expected average per-claim payment for any one underwriting year over the life of the companys 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 percent coverage. As a result, for loans with these risk share arrangements, the applicable
pro-rata coverage amount provided is used when applying the factor. 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 percent of the mortgage loan value. The
company considers insurance in force and risk in force to be measures of the companys 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 companys revenues or profitability during that period.
Management also regularly monitors and reports a loss
ratio for the companys 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.
An assumed tax rate of 35 percent is utilized in certain adjustments to net
operating income (loss) and in the explanation of specific variances of operating performance and investment results.
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.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words such as expects, intends, anticipates, plans, believes, seeks, estimates, will or words of similar
meaning and include, but are not limited to, statements regarding the outlook for the companys future business and financial performance. Forward-looking statements are based on managements current expectations and assumptions, which are
subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and
risks, including, but not limited to, the following:
|
|
|
Risks relating to all of the companys businesses, including: (i) inability to successfully develop and execute strategic plans to
effectively address the companys current business challenges (including with respect to its long term care insurance business, ratings and capital), including as a result of the inability to complete the planned sale of the companys
lifestyle protection insurance business, certain blocks of the companys term life insurance or the companys European mortgage insurance business at all or on the terms anticipated and failure to attract buyers for any other businesses or
other assets the |
12
|
company may seek to sell, or securities it may seek to issue, in each case, in a timely manner on anticipated terms; inability to generate required capital; failure to obtain any required
regulatory, stockholder and/or noteholder approvals or consents, or the companys challenges changing or being more costly or difficult to successfully address than currently anticipated or the benefits achieved being less than anticipated;
inability to successfully develop more targeted product features and benefits, strengthen relationships with producers or achieve anticipated cost-savings in a timely manner; adverse tax or accounting charges; (ii) inability to increase the
capital needed in the companys businesses in a timely manner and on anticipated terms, including through improved business performance, reinsurance or similar transactions, asset sales, securities offerings or otherwise, in each case as and
when required; (iii) inadequate reserves and the need to increase reserves, including as a result of any changes the company may make to its assumptions, methodologies or otherwise in connection with periodic or other reviews (including as a
result of the companys actual experience differing significantly from its assumptions); (iv) ineffective or inadequate risk management in identifying, controlling or mitigating risks; weaknesses in, or ineffective, internal controls;
(v) recent or future adverse rating agency actions, including with respect to rating downgrades or potential downgrades, being placed on negative outlook or being put on review for potential downgrade, all of which could have adverse
implications for the company, including with respect to key business relationships, product offerings, business results of operations, financial condition and capital needs, strategic plans, collateral obligations and availability and terms of
hedging, reinsurance and borrowings; (vi) inability to retain, attract and motivate qualified employees and independent sales representatives, particularly in the light of the companys recent business challenges; (vii) adverse change
in regulatory requirements, including risk-based capital; (viii) dependence on dividends and other distributions from the companys subsidiaries (particularly the companys international subsidiaries) and the inability of any
subsidiaries to pay dividends or make other distributions to the company, including as a result of the performance of the subsidiaries and insurance, regulatory or corporate law restrictions (including the unwillingness or inability of the
subsidiary that indirectly owns most of the companys interests in the Australian and Canadian mortgage insurance businesses to pay the dividends that it receives from those businesses as a result of the impact on its financial condition of its
capital support for certain long term care insurance related reinsurance arrangements); (ix) inability to borrow under the companys credit facility; (x) downturns and volatility in global economies and equity and credit markets;
(xi) interest rates and changes in rates; (xii) availability, affordability and adequacy of reinsurance to protect the company against losses; (xiii) defaults by counterparties to reinsurance arrangements or derivative instruments;
(xiv) changes in valuation of fixed maturity, equity and trading securities; (xv) defaults or other events impacting the value of the companys fixed maturity securities portfolio; (xvi) defaults on the companys commercial
mortgage loans or the mortgage loans underlying its investments in commercial mortgage-backed securities and volatility in performance; (xvii) competition; (xviii) reliance on, and loss of, key distribution relationships;
(xix) extensive regulation of the companys businesses and changes in applicable laws and regulations; (xx) litigation and regulatory investigations or other actions (including the two shareholder putative class action lawsuits
alleging securities law violations filed against the company in 2014); (xxi) the material weakness in the companys internal control over financial reporting; (xxii) failure or any compromise of the security of the companys
computer systems, disaster recovery systems and business continuity plans and failures to safeguard, or breaches of, the companys confidential information; (xxiii) occurrence of natural or man-made disasters or a pandemic;
(xxiv) impact of additional regulations pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act; (xxv) changes in accounting and reporting standards; (xxvi) impairments of or valuation allowances against the
companys deferred tax assets; (xxvii) accelerated amortization of DAC and present value of future profits (including as a result of any changes the company may make to its assumptions, methodologies or otherwise in connection with
periodic or other reviews); (xxviii) political and economic instability or changes in government policies; and (xxix) fluctuations in foreign currency exchange rates and international securities markets; |
|
|
|
Risks relating primarily to the companys mortgage insurance businesses, including: (i) deterioration in economic conditions or a
decline in home prices that adversely affect the companys loss experience in mortgage insurance; (ii) premiums for the significant portion of the companys international mortgage insurance risk in-force with high loan-to-value ratios
may not be sufficient to compensate the company for the greater risks associated with those policies; (iii) competition in the companys |
13
|
international and U.S. mortgage insurance businesses, including from government and government-owned and GSEs offering mortgage insurance; (iv) changes in regulations adversely affecting the
companys international operations; (v) inability to meet or maintain the PMIERs on the contemplated timetable with the contemplated funding; (vi) inability of U.S. mortgage insurance subsidiaries to meet minimum statutory capital
requirements and hazardous financial condition standards; (vii) the influence of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and a small number of large mortgage lenders on the U.S.
mortgage insurance market and adverse changes to the role or structure of Fannie Mae and Freddie Mac; (viii) increases in U.S. mortgage insurance default rates; (ix) inability to realize anticipated benefits of the companys
rescissions, curtailments, loan modifications or other similar programs in its U.S. mortgage insurance business; (x) problems associated with foreclosure process defects in the United States that may defer claim payments; (xi) competition
with GSEs may put the company at a disadvantage on pricing and other terms and conditions; (xii) adverse changes in regulations affecting the companys U.S. mortgage insurance business; (xiii) decreases in the volume of high
loan-to-value mortgage originations or increases in mortgage insurance cancellations in the United States; (xiv) increases in the use of alternatives to private mortgage insurance in the United States and reductions in the level of coverage
selected; and (xv) potential liabilities in connection with the companys U.S. contract underwriting services; |
|
|
|
Risks relating primarily to the companys long term care insurance, life insurance and annuities businesses, including: (i) the companys inability to increase sufficiently, and in a timely manner,
premiums on in-force long term care insurance policies and/or reduce in-force benefits, and charge higher premiums on new policies, in each case, as currently anticipated (including the future increases assumed in connection with the completion of
the companys margin reviews in the fourth quarter of 2014) and as may be required from time to time in the future (including as a result of its failure to obtain any necessary regulatory approvals or unwillingness or inability of policyholders
to pay increased premiums); the companys inability to reflect future premium increases and other management actions in its margin calculation as anticipated; (ii) failure to sufficiently increase demand for the companys long term
care insurance, life insurance and fixed annuity products; (iii) adverse impact on the companys financial results as a result of projected profits followed by projected losses (as is currently the case with the companys long term
care insurance business); (iv) deviations from the persistency assumptions used to price and establish reserves for the companys insurance policies and annuity contracts; (v) medical advances, such as genetic research and diagnostic
imaging, and related legislation that impact policyholder behavior in ways adverse to the company; and (vi) inability to continue to implement actions to mitigate the impact of statutory reserve requirements; |
|
|
|
Other risks, including: (i) the possibility that in certain circumstances the company will be obligated to make payments to General Electric Company (GE) under the tax matters agreement with GE even if its
corresponding tax savings are never realized and payments could be accelerated in the event of certain changes in control; and (ii) provisions of the companys certificate of incorporation and bylaws and the tax matters agreement with GE
may discourage takeover attempts and business combinations that stockholders might consider in their best interests; and |
|
|
|
Risks relating to the companys common stock, including: (i) the continued suspension of payment of dividends; and (ii) stock price fluctuations. |
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or
otherwise.
# # #
Contact
Information:
|
|
|
Investors: |
|
Amy Corbin, 804 662.2685 |
|
|
|
|
amy.corbin@genworth.com |
|
|
Media: |
|
Julie Westermann, 804 662.2423 |
|
|
|
|
julie.westermann@genworth.com |
14
Condensed Consolidated Statements of Income
(Amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
2015 |
|
|
2014 |
|
Revenues: |
|
|
|
|
|
|
|
|
Premiums |
|
$ |
1,145 |
|
|
$ |
1,210 |
|
Net investment income |
|
|
783 |
|
|
|
778 |
|
Net investment gains (losses) |
|
|
(51 |
) |
|
|
(27 |
) |
Insurance and investment product fees and other |
|
|
223 |
|
|
|
229 |
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
2,100 |
|
|
|
2,190 |
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
1,290 |
|
|
|
1,934 |
|
Interest credited |
|
|
179 |
|
|
|
185 |
|
Acquisition and operating expenses, net of deferrals |
|
|
314 |
|
|
|
284 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
563 |
|
|
|
113 |
|
Goodwill impairment |
|
|
|
|
|
|
550 |
|
Interest expense |
|
|
105 |
|
|
|
104 |
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
2,451 |
|
|
|
3,170 |
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes |
|
|
(351 |
) |
|
|
(980 |
) |
Benefit for income taxes |
|
|
(134 |
) |
|
|
(187 |
) |
|
|
|
|
|
|
|
|
|
Loss from continuing operations |
|
|
(217 |
) |
|
|
(793 |
) |
Income (loss) from discontinued operations, net of taxes |
|
|
(21 |
) |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(238 |
) |
|
|
(787 |
) |
Less: net income attributable to noncontrolling interests |
|
|
46 |
|
|
|
57 |
|
|
|
|
|
|
|
|
|
|
Net loss available to Genworth Financial, Inc.s common stockholders |
|
$ |
(284 |
) |
|
$ |
(844 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations available to Genworth Financial, Inc.s common stockholders per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.53 |
) |
|
$ |
(1.71 |
) |
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
(0.53 |
) |
|
$ |
(1.71 |
) |
|
|
|
|
|
|
|
|
|
Net loss available to Genworth Financial, Inc.s common stockholders per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.57 |
) |
|
$ |
(1.70 |
) |
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
(0.57 |
) |
|
$ |
(1.70 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
497.4 |
|
|
|
496.6 |
|
|
|
|
|
|
|
|
|
|
Diluted3 |
|
|
497.4 |
|
|
|
496.6 |
|
|
|
|
|
|
|
|
|
|
15
Reconciliation of Net Operating Income (Loss) to Net Loss
(Amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
Three
months ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
Net operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Global Mortgage Insurance Division |
|
|
|
|
|
|
|
|
|
|
|
|
International Mortgage Insurance segment |
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
|
$ |
38 |
|
|
$ |
46 |
|
|
$ |
37 |
|
Australia |
|
|
21 |
|
|
|
48 |
|
|
|
29 |
|
Other Countries |
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Mortgage Insurance segment |
|
|
54 |
|
|
|
87 |
|
|
|
61 |
|
U.S. Mortgage Insurance segment |
|
|
37 |
|
|
|
(2 |
) |
|
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Global Mortgage Insurance Division |
|
|
91 |
|
|
|
85 |
|
|
|
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Life Insurance Division |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Life Insurance segment |
|
|
|
|
|
|
|
|
|
|
|
|
Long Term Care Insurance |
|
|
(10 |
) |
|
|
(361 |
) |
|
|
10 |
|
Life Insurance |
|
|
31 |
|
|
|
13 |
|
|
|
22 |
|
Fixed Annuities |
|
|
19 |
|
|
|
26 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Life Insurance segment |
|
|
40 |
|
|
|
(322 |
) |
|
|
57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Life Insurance Division |
|
|
40 |
|
|
|
(322 |
) |
|
|
57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other Division |
|
|
|
|
|
|
|
|
|
|
|
|
Runoff segment |
|
|
(4 |
) |
|
|
5 |
|
|
|
9 |
|
Corporate and Other |
|
|
(63 |
) |
|
|
(91 |
) |
|
|
(57 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Corporate and Other Division |
|
|
(67 |
) |
|
|
(86 |
) |
|
|
(48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (loss) |
|
|
64 |
|
|
|
(323 |
) |
|
|
119 |
|
Adjustments to net operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment gains (losses), net (see below for reconciliation) |
|
|
(22 |
) |
|
|
(10 |
) |
|
|
4 |
|
Goodwill impairment, net |
|
|
|
|
|
|
(517 |
) |
|
|
|
|
Gains (losses) on early extinguishment of debt, net |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
Gains (losses) from life block transactions, net |
|
|
(296 |
) |
|
|
|
|
|
|
|
|
Expenses related to restructuring, net |
|
|
|
|
|
|
|
|
|
|
(2 |
) |
Tax impact from potential business portfolio changes |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations available to Genworth Financial, Inc.s common stockholders |
|
|
(263 |
) |
|
|
(850 |
) |
|
|
121 |
|
Net income attributable to noncontrolling interests |
|
|
46 |
|
|
|
57 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
|
(217 |
) |
|
|
(793 |
) |
|
|
175 |
|
Income (loss) from discontinued operations, net of taxes |
|
|
(21 |
) |
|
|
6 |
|
|
|
(314 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(238 |
) |
|
|
(787 |
) |
|
|
(139 |
) |
Less: net income attributable to noncontrolling interests |
|
|
46 |
|
|
|
57 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss available to Genworth Financial, Inc.s common stockholders |
|
$ |
(284 |
) |
|
$ |
(844 |
) |
|
$ |
(193 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss available to Genworth Financial, Inc.s common stockholders per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.57 |
) |
|
$ |
(1.70 |
) |
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
(0.57 |
) |
|
$ |
(1.70 |
) |
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
|
$ |
(0.65 |
) |
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.13 |
|
|
$ |
(0.65 |
) |
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
497.4 |
|
|
|
496.6 |
|
|
|
497.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted3 |
|
|
497.4 |
|
|
|
496.6 |
|
|
|
499.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net investment gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment gains (losses), gross |
|
$ |
(51 |
) |
|
$ |
(27 |
) |
|
$ |
8 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
|
DAC and other intangible amortization and certain benefit reserves |
|
|
9 |
|
|
|
9 |
|
|
|
8 |
|
Net investment gains (losses) attributable to noncontrolling interests |
|
|
8 |
|
|
|
3 |
|
|
|
(9 |
) |
Taxes |
|
|
12 |
|
|
|
5 |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment gains (losses), net of taxes and other adjustments |
|
$ |
(22 |
) |
|
$ |
(10 |
) |
|
$ |
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
Condensed Consolidated Balance Sheets
(Amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
December 31, 2014 |
|
Assets |
|
|
|
|
|
|
|
|
Cash, cash equivalents and invested assets |
|
$ |
76,535 |
|
|
$ |
77,388 |
|
Deferred acquisition costs |
|
|
4,437 |
|
|
|
4,849 |
|
Intangible assets |
|
|
284 |
|
|
|
250 |
|
Goodwill |
|
|
14 |
|
|
|
16 |
|
Reinsurance recoverable |
|
|
17,276 |
|
|
|
17,314 |
|
Other assets |
|
|
577 |
|
|
|
524 |
|
Separate account assets |
|
|
7,893 |
|
|
|
9,208 |
|
Assets held for sale related to discontinued operations |
|
|
1,206 |
|
|
|
1,809 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
108,222 |
|
|
$ |
111,358 |
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders equity |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
36,472 |
|
|
$ |
35,915 |
|
Policyholder account balances |
|
|
26,000 |
|
|
|
26,032 |
|
Liability for policy and contract claims |
|
|
8,065 |
|
|
|
7,937 |
|
Unearned premiums |
|
|
3,340 |
|
|
|
3,547 |
|
Deferred tax and other liabilities |
|
|
3,442 |
|
|
|
4,140 |
|
Borrowings related to securitization entities |
|
|
188 |
|
|
|
219 |
|
Non-recourse funding obligations |
|
|
1,951 |
|
|
|
1,996 |
|
Long-term borrowings |
|
|
4,601 |
|
|
|
4,639 |
|
Separate account liabilities |
|
|
7,893 |
|
|
|
9,208 |
|
Liabilities held for sale related to discontinued operations |
|
|
854 |
|
|
|
928 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
92,806 |
|
|
|
94,561 |
|
|
|
|
|
|
|
|
|
|
Stockholders equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
11,944 |
|
|
|
11,997 |
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
Net unrealized investment gains (losses): |
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on securities not other-than-temporarily impaired |
|
|
1,709 |
|
|
|
2,431 |
|
Net unrealized gains (losses) on other-than-temporarily impaired securities |
|
|
22 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
Net unrealized investment gains (losses) |
|
|
1,731 |
|
|
|
2,453 |
|
|
|
|
|
|
|
|
|
|
Derivatives qualifying as hedges |
|
|
2,130 |
|
|
|
2,070 |
|
Foreign currency translation and other adjustments |
|
|
(383 |
) |
|
|
(77 |
) |
|
|
|
|
|
|
|
|
|
Total accumulated other comprehensive income (loss) |
|
|
3,478 |
|
|
|
4,446 |
|
Retained earnings |
|
|
856 |
|
|
|
1,179 |
|
Treasury stock, at cost |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
13,579 |
|
|
|
14,923 |
|
Noncontrolling interests |
|
|
1,837 |
|
|
|
1,874 |
|
|
|
|
|
|
|
|
|
|
Total stockholders equity |
|
|
15,416 |
|
|
|
16,797 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
108,222 |
|
|
$ |
111,358 |
|
|
|
|
|
|
|
|
|
|
17
Impact of Foreign Exchange on Operating
Results8
Three months ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Percentages Including Foreign Exchange |
|
|
Percentages Excluding Foreign Exchange9 |
|
|
|
|
Canada Mortgage Insurance (MI): |
|
|
|
|
|
|
|
|
Flow new insurance written |
|
|
(3 |
)% |
|
|
15 |
% |
Flow new insurance written (3Q15 vs. 2Q15) |
|
|
22 |
% |
|
|
26 |
% |
|
|
|
Australia MI: |
|
|
|
|
|
|
|
|
Flow new insurance written |
|
|
(22 |
)% |
|
|
(2 |
)% |
Flow new insurance written (3Q15 vs. 2Q15) |
|
|
(3 |
)% |
|
|
2 |
% |
8 |
All percentages are comparing the third quarter of 2015 to the third quarter of 2014 unless otherwise stated. |
9 |
The impact of foreign exchange was calculated using the comparable prior period exchange rates. |
18
Reconciliation of Core Yield to Reported Yield
|
|
|
|
|
(Assets - amounts in billions) |
|
Three months ended September 30, 2015 |
|
Reported Total Invested Assets and Cash |
|
$ |
75.9 |
|
Subtract: |
|
|
|
|
Securities lending |
|
|
0.4 |
|
Unrealized gains (losses) |
|
|
5.4 |
|
Derivative counterparty collateral |
|
|
|
|
|
|
|
|
|
Adjusted end of period invested assets |
|
$ |
70.1 |
|
|
|
|
|
|
|
|
Average Invested Assets Used in Reported Yield Calculation |
|
$ |
70.2 |
|
Subtract: |
|
|
|
|
Restricted commercial mortgage loans and other invested assets related to securitization entities10 |
|
|
0.2 |
|
|
|
|
|
|
Average Invested Assets Used in Core Yield Calculation |
|
$ |
70.0 |
|
|
|
|
|
|
|
|
(Income - amounts in millions) |
|
|
|
Reported Net Investment Income |
|
$ |
783 |
|
Subtract: |
|
|
|
|
Bond calls and commercial mortgage loan prepayments |
|
|
12 |
|
Other non-core items11 |
|
|
1 |
|
Restricted commercial mortgage loans and other invested assets related to securitization entities10 |
|
|
2 |
|
|
|
|
|
|
Core Net Investment Income |
|
$ |
768 |
|
|
|
|
|
|
|
|
Reported Yield |
|
|
4.46 |
% |
|
|
|
|
|
Core Yield |
|
|
4.39 |
% |
|
|
|
|
|
10 |
Represents the incremental assets and investment income related to restricted commercial mortgage loans and other invested assets. |
11 |
Includes cost basis adjustments on structured securities and various other immaterial items. |
19
Exhibit 99.2
Third Quarter Financial Supplement
September 30,
2015
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
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.
2
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Dear Investor,
Thank you for your continued interest in Genworth Financial.
Regards,
Amy Corbin
Investor Relations
InvestorInfo@genworth.com
3
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD 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 companys 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 companys 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.
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 Limiteds 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 second quarter of 2015, the company recorded a $2 million after-tax expense 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. The company recognized a tax charge of $7 million in the third quarter of 2015 from potential business portfolio changes related to its mortgage insurance business in Europe.
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 companys 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 companys 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 61 and 62 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 59).
(1) |
U.S. Generally Accepted Accounting Principles |
4
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Results
of Operations and Selected Operating Performance Measures
The companys 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 companys 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 segments 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 companys 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 companys revenues or profitability during that period.
Management regularly monitors and
reports insurance in-force and risk in-force. Insurance in-force for the international mortgage and U.S. mortgage insurance businesses is a measure of the aggregate face value of outstanding insurance policies as of the respective reporting date.
For risk in-force in the international mortgage insurance business, the company has computed an effective risk in-force amount, which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale
of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor of 35% that represents the highest expected average per-claim payment for any one underwriting year over the life of the companys
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. Risk in-force for the U.S. mortgage insurance business is the obligation that is limited under contractual terms to the amounts less than 100% of the mortgage loan value.
The company considers insurance in-force and risk in-force to be measures of the companys 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 companys revenues or profitability during that period.
Management also regularly monitors and reports a loss
ratio for the companys 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.
5
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Financial Highlights
(amounts in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data |
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
Total Genworth Financial, Inc.s stockholders equity, excluding accumulated other comprehensive income |
|
$ |
10,101 |
|
|
$ |
10,381 |
|
|
$ |
10,632 |
|
|
$ |
10,477 |
|
|
$ |
11,231 |
|
Total accumulated other comprehensive income |
|
|
3,478 |
|
|
|
3,309 |
|
|
|
4,692 |
|
|
|
4,446 |
|
|
|
3,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
$ |
13,579 |
|
|
$ |
13,690 |
|
|
$ |
15,324 |
|
|
$ |
14,923 |
|
|
$ |
15,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
27.29 |
|
|
$ |
27.52 |
|
|
$ |
30.81 |
|
|
$ |
30.04 |
|
|
$ |
30.54 |
|
Book value per common share, excluding accumulated other comprehensive income |
|
$ |
20.30 |
|
|
$ |
20.87 |
|
|
$ |
21.38 |
|
|
$ |
21.09 |
|
|
$ |
22.62 |
|
Common shares outstanding as of the balance sheet date |
|
|
497.5 |
|
|
|
497.4 |
|
|
|
497.4 |
|
|
|
496.7 |
|
|
|
496.6 |
|
|
|
|
|
Twelve months ended |
|
Twelve Month Rolling Average ROE |
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
GAAP Basis ROE |
|
|
-10.3% |
|
|
|
-15.0% |
|
|
|
-11.3% |
|
|
|
-10.8% |
|
|
|
-2.3% |
|
Operating ROE(1) |
|
|
-0.7% |
|
|
|
-4.2% |
|
|
|
-3.8% |
|
|
|
-3.5% |
|
|
|
1.7% |
|
|
|
|
|
Three months ended |
|
Quarterly Average ROE |
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
GAAP Basis ROE |
|
|
-11.1% |
|
|
|
-7.3% |
|
|
|
5.8% |
|
|
|
-28.0% |
|
|
|
-29.0% |
|
Operating ROE(1) |
|
|
2.5% |
|
|
|
4.5% |
|
|
|
5.8% |
|
|
|
-15.3% |
|
|
|
-11.1% |
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Shares |
|
Three months ended September 30, 2015 |
|
|
Nine months ended September 30, 2015 |
|
Weighted-average common shares used in basic earnings per common share calculations |
|
|
497.4 |
|
|
|
497.3 |
|
Potentially dilutive securities: |
|
|
|
|
|
|
|
|
Stock options, restricted stock units and stock appreciation rights |
|
|
|
|
|
|
1.7 |
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares used in diluted earnings per common share
calculations(2) |
|
|
497.4 |
|
|
|
499.0 |
|
|
|
|
|
|
|
|
|
|
(1) |
See page 61 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 months ended September 30, 2015, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per
share for the three months ended September 30, 2015, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.3 million would have been antidilutive to the calculation. If the company had not incurred a
loss from continuing operations for the three months ended September 30, 2015, dilutive potential weighted-average common shares outstanding would have been 498.7 million. |
6
Consolidated Quarterly Results
7
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Consolidated Net Income (Loss) by Quarter
(amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
1,145 |
|
|
$ |
1,134 |
|
|
$ |
1,143 |
|
|
$ |
3,422 |
|
|
$ |
1,214 |
|
|
$ |
1,210 |
|
|
$ |
1,144 |
|
|
$ |
1,132 |
|
|
$ |
4,700 |
|
Net investment income |
|
|
783 |
|
|
|
793 |
|
|
|
781 |
|
|
|
2,357 |
|
|
|
797 |
|
|
|
778 |
|
|
|
791 |
|
|
|
776 |
|
|
|
3,142 |
|
Net investment gains (losses) |
|
|
(51 |
) |
|
|
8 |
|
|
|
(16 |
) |
|
|
(59 |
) |
|
|
(11 |
) |
|
|
(27 |
) |
|
|
34 |
|
|
|
(18 |
) |
|
|
(22 |
) |
Insurance and investment product fees and other |
|
|
223 |
|
|
|
222 |
|
|
|
227 |
|
|
|
672 |
|
|
|
229 |
|
|
|
229 |
|
|
|
225 |
|
|
|
226 |
|
|
|
909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
2,100 |
|
|
|
2,157 |
|
|
|
2,135 |
|
|
|
6,392 |
|
|
|
2,229 |
|
|
|
2,190 |
|
|
|
2,194 |
|
|
|
2,116 |
|
|
|
8,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
1,290 |
|
|
|
1,232 |
|
|
|
1,192 |
|
|
|
3,714 |
|
|
|
2,136 |
|
|
|
1,934 |
|
|
|
1,200 |
|
|
|
1,148 |
|
|
|
6,418 |
|
Interest credited |
|
|
179 |
|
|
|
181 |
|
|
|
180 |
|
|
|
540 |
|
|
|
185 |
|
|
|
185 |
|
|
|
184 |
|
|
|
183 |
|
|
|
737 |
|
Acquisition and operating expenses, net of deferrals |
|
|
314 |
|
|
|
295 |
|
|
|
267 |
|
|
|
876 |
|
|
|
299 |
|
|
|
284 |
|
|
|
282 |
|
|
|
273 |
|
|
|
1,138 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
563 |
|
|
|
101 |
|
|
|
95 |
|
|
|
759 |
|
|
|
128 |
|
|
|
113 |
|
|
|
108 |
|
|
|
104 |
|
|
|
453 |
|
Goodwill impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
299 |
|
|
|
550 |
|
|
|
|
|
|
|
|
|
|
|
849 |
|
Interest expense |
|
|
105 |
|
|
|
103 |
|
|
|
107 |
|
|
|
315 |
|
|
|
106 |
|
|
|
104 |
|
|
|
112 |
|
|
|
111 |
|
|
|
433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
2,451 |
|
|
|
1,912 |
|
|
|
1,841 |
|
|
|
6,204 |
|
|
|
3,153 |
|
|
|
3,170 |
|
|
|
1,886 |
|
|
|
1,819 |
|
|
|
10,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(351 |
) |
|
|
245 |
|
|
|
294 |
|
|
|
188 |
|
|
|
(924 |
) |
|
|
(980 |
) |
|
|
308 |
|
|
|
297 |
|
|
|
(1,299 |
) |
Provision (benefit) for income taxes |
|
|
(134 |
) |
|
|
70 |
|
|
|
91 |
|
|
|
27 |
|
|
|
(78 |
) |
|
|
(187 |
) |
|
|
84 |
|
|
|
87 |
|
|
|
(94 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(217 |
) |
|
|
175 |
|
|
|
203 |
|
|
|
161 |
|
|
|
(846 |
) |
|
|
(793 |
) |
|
|
224 |
|
|
|
210 |
|
|
|
(1,205 |
) |
Income (loss) from discontinued operations, net of taxes(1) |
|
|
(21 |
) |
|
|
(314 |
) |
|
|
1 |
|
|
|
(334 |
) |
|
|
138 |
|
|
|
6 |
|
|
|
4 |
|
|
|
9 |
|
|
|
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
(238 |
) |
|
|
(139 |
) |
|
|
204 |
|
|
|
(173 |
) |
|
|
(708 |
) |
|
|
(787 |
) |
|
|
228 |
|
|
|
219 |
|
|
|
(1,048 |
) |
Less: net income attributable to noncontrolling interests |
|
|
46 |
|
|
|
54 |
|
|
|
50 |
|
|
|
150 |
|
|
|
52 |
|
|
|
57 |
|
|
|
52 |
|
|
|
35 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
$ |
(284 |
) |
|
$ |
(193 |
) |
|
$ |
154 |
|
|
$ |
(323 |
) |
|
$ |
(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 |
|
$ |
(0.53 |
) |
|
$ |
0.24 |
|
|
$ |
0.31 |
|
|
$ |
0.02 |
|
|
$ |
(1.81 |
) |
|
$ |
(1.71 |
) |
|
$ |
0.35 |
|
|
$ |
0.35 |
|
|
$ |
(2.82 |
) |
Diluted |
|
$ |
(0.53 |
) |
|
$ |
0.24 |
|
|
$ |
0.31 |
|
|
$ |
0.02 |
|
|
$ |
(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 |
|
$ |
(0.57 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.31 |
|
|
$ |
(0.65 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.70 |
) |
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
(2.51 |
) |
Diluted |
|
$ |
(0.57 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.31 |
|
|
$ |
(0.65 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.70 |
) |
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
(2.51 |
) |
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
497.4 |
|
|
|
497.4 |
|
|
|
497.0 |
|
|
|
497.3 |
|
|
|
496.7 |
|
|
|
496.6 |
|
|
|
496.6 |
|
|
|
495.8 |
|
|
|
496.4 |
|
Diluted(2) |
|
|
497.4 |
|
|
|
499.3 |
|
|
|
498.9 |
|
|
|
499.0 |
|
|
|
496.7 |
|
|
|
496.6 |
|
|
|
503.6 |
|
|
|
502.7 |
|
|
|
496.4 |
|
(1) |
Income (loss) from discontinued operations related to the lifestyle protection insurance business. Refer to page 54 for operating results of discontinued operations.
|
(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 months ended September 30, 2015, the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, the company was required
to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended September 30, 2015, the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, as
the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.3 million, 5.4 million, 3.2 million and 5.6 million, respectively, would have been antidilutive to the calculation. If the company had not incurred
a loss from continuing operations for the three months ended September 30, 2015, the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, dilutive potential weighted-average common shares outstanding would
have been 498.7 million, 502.0 million, 499.9 million and 502.0 million, respectively. |
8
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income (Loss) by Segment by Quarter
(amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Global Mortgage Insurance Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Mortgage Insurance segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
|
$ |
38 |
|
|
$ |
37 |
|
|
$ |
40 |
|
|
$ |
115 |
|
|
$ |
36 |
|
|
$ |
46 |
|
|
$ |
47 |
|
|
$ |
41 |
|
|
$ |
170 |
|
Australia |
|
|
21 |
|
|
|
29 |
|
|
|
30 |
|
|
|
80 |
|
|
|
33 |
|
|
|
48 |
|
|
|
57 |
|
|
|
62 |
|
|
|
200 |
|
Other Countries |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(16 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
(25 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Mortgage Insurance segment |
|
|
54 |
|
|
|
61 |
|
|
|
64 |
|
|
|
179 |
|
|
|
62 |
|
|
|
87 |
|
|
|
97 |
|
|
|
99 |
|
|
|
345 |
|
U.S. Mortgage Insurance segment |
|
|
37 |
|
|
|
49 |
|
|
|
52 |
|
|
|
138 |
|
|
|
21 |
|
|
|
(2 |
) |
|
|
39 |
|
|
|
33 |
|
|
|
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Global Mortgage Insurance Division |
|
|
91 |
|
|
|
110 |
|
|
|
116 |
|
|
|
317 |
|
|
|
83 |
|
|
|
85 |
|
|
|
136 |
|
|
|
132 |
|
|
|
436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Life Insurance Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Life Insurance segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Care Insurance |
|
|
(10 |
) |
|
|
10 |
|
|
|
10 |
|
|
|
10 |
|
|
|
(506 |
) |
|
|
(361 |
) |
|
|
6 |
|
|
|
46 |
|
|
|
(815 |
) |
Life Insurance |
|
|
31 |
|
|
|
22 |
|
|
|
40 |
|
|
|
93 |
|
|
|
1 |
|
|
|
13 |
|
|
|
39 |
|
|
|
21 |
|
|
|
74 |
|
Fixed Annuities |
|
|
19 |
|
|
|
25 |
|
|
|
31 |
|
|
|
75 |
|
|
|
23 |
|
|
|
26 |
|
|
|
24 |
|
|
|
27 |
|
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Life Insurance segment |
|
|
40 |
|
|
|
57 |
|
|
|
81 |
|
|
|
178 |
|
|
|
(482 |
) |
|
|
(322 |
) |
|
|
69 |
|
|
|
94 |
|
|
|
(641 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Life Insurance Division |
|
|
40 |
|
|
|
57 |
|
|
|
81 |
|
|
|
178 |
|
|
|
(482 |
) |
|
|
(322 |
) |
|
|
69 |
|
|
|
94 |
|
|
|
(641 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Runoff segment |
|
|
(4 |
) |
|
|
9 |
|
|
|
11 |
|
|
|
16 |
|
|
|
16 |
|
|
|
5 |
|
|
|
15 |
|
|
|
12 |
|
|
|
48 |
|
Corporate and Other |
|
|
(63 |
) |
|
|
(57 |
) |
|
|
(54 |
) |
|
|
(174 |
) |
|
|
(32 |
) |
|
|
(91 |
) |
|
|
(66 |
) |
|
|
(52 |
) |
|
|
(241 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Corporate and Other Division |
|
|
(67 |
) |
|
|
(48 |
) |
|
|
(43 |
) |
|
|
(158 |
) |
|
|
(16 |
) |
|
|
(86 |
) |
|
|
(51 |
) |
|
|
(40 |
) |
|
|
(193 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
|
64 |
|
|
|
119 |
|
|
|
154 |
|
|
|
337 |
|
|
|
(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 early extinguishment of debt, net |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
Gains (losses) from life block transactions, net |
|
|
(296 |
) |
|
|
|
|
|
|
|
|
|
|
(296 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses related to restructuring, net |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax impact from potential business portfolio changes |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
(7 |
) |
|
|
(205 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(205 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL INC.S COMMON STOCKHOLDERS |
|
|
(263 |
) |
|
|
121 |
|
|
|
153 |
|
|
|
11 |
|
|
|
(898 |
) |
|
|
(850 |
) |
|
|
172 |
|
|
|
175 |
|
|
|
(1,401 |
) |
Net income attributable to noncontrolling interests |
|
|
46 |
|
|
|
54 |
|
|
|
50 |
|
|
|
150 |
|
|
|
52 |
|
|
|
57 |
|
|
|
52 |
|
|
|
35 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(217 |
) |
|
|
175 |
|
|
|
203 |
|
|
|
161 |
|
|
|
(846 |
) |
|
|
(793 |
) |
|
|
224 |
|
|
|
210 |
|
|
|
(1,205 |
) |
Income (loss) from discontinued operations, net of taxes |
|
|
(21 |
) |
|
|
(314 |
) |
|
|
1 |
|
|
|
(334 |
) |
|
|
138 |
|
|
|
6 |
|
|
|
4 |
|
|
|
9 |
|
|
|
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
(238 |
) |
|
|
(139 |
) |
|
|
204 |
|
|
|
(173 |
) |
|
|
(708 |
) |
|
|
(787 |
) |
|
|
228 |
|
|
|
219 |
|
|
|
(1,048 |
) |
Less: net income attributable to noncontrolling interests |
|
|
46 |
|
|
|
54 |
|
|
|
50 |
|
|
|
150 |
|
|
|
52 |
|
|
|
57 |
|
|
|
52 |
|
|
|
35 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
$ |
(284 |
) |
|
$ |
(193 |
) |
|
$ |
154 |
|
|
$ |
(323 |
) |
|
$ |
(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 |
|
$ |
(0.57 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.31 |
|
|
$ |
(0.65 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.70 |
) |
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
(2.51 |
) |
Diluted |
|
$ |
(0.57 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.31 |
|
|
$ |
(0.65 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.70 |
) |
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
(2.51 |
) |
Net operating income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
|
$ |
0.24 |
|
|
$ |
0.31 |
|
|
$ |
0.68 |
|
|
$ |
(0.83 |
) |
|
$ |
(0.65 |
) |
|
$ |
0.31 |
|
|
$ |
0.37 |
|
|
$ |
(0.80 |
) |
Diluted |
|
$ |
0.13 |
|
|
$ |
0.24 |
|
|
$ |
0.31 |
|
|
$ |
0.68 |
|
|
$ |
(0.83 |
) |
|
$ |
(0.65 |
) |
|
$ |
0.31 |
|
|
$ |
0.37 |
|
|
$ |
(0.80 |
) |
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
497.4 |
|
|
|
497.4 |
|
|
|
497.0 |
|
|
|
497.3 |
|
|
|
496.7 |
|
|
|
496.6 |
|
|
|
496.6 |
|
|
|
495.8 |
|
|
|
496.4 |
|
Diluted(1) |
|
|
497.4 |
|
|
|
499.3 |
|
|
|
498.9 |
|
|
|
499.0 |
|
|
|
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 for the three months ended September 30, 2015, the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, the company was required to use basic weighted-average common
shares outstanding in the calculation of diluted loss per share for the three months ended September 30, 2015, the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, as the inclusion of
shares for stock options, restricted stock units and stock appreciation rights of 1.3 million, 5.4 million, 3.2 million and 5.6 million, respectively, would have been antidilutive to the calculation. If the company had not
incurred a loss from continuing operations for the three months ended September 30, 2015, the three months ended September 30, 2014 and the three and twelve months ended December 31, 2014, dilutive potential weighted-average common
shares outstanding would have been 498.7 million, 502.0 million, 499.9 million and 502.0 million, respectively. Since it had net operating income for the three months ended September 30, 2015, the company used
498.7 million diluted weighted-average common shares outstanding in the calculation of diluted net operating income per common share. |
9
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Consolidated Balance Sheets
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities available-for-sale, at fair value |
|
$ |
60,851 |
|
|
$ |
60,568 |
|
|
$ |
61,904 |
|
|
$ |
61,276 |
|
|
$ |
61,091 |
|
Equity securities available-for-sale, at fair value |
|
|
273 |
|
|
|
299 |
|
|
|
299 |
|
|
|
275 |
|
|
|
306 |
|
Commercial mortgage loans |
|
|
6,133 |
|
|
|
6,175 |
|
|
|
6,149 |
|
|
|
6,100 |
|
|
|
6,077 |
|
Restricted commercial mortgage loans related to securitization entities |
|
|
175 |
|
|
|
181 |
|
|
|
188 |
|
|
|
201 |
|
|
|
209 |
|
Policy loans |
|
|
1,567 |
|
|
|
1,584 |
|
|
|
1,506 |
|
|
|
1,501 |
|
|
|
1,512 |
|
Other invested assets |
|
|
2,773 |
|
|
|
2,191 |
|
|
|
2,697 |
|
|
|
2,244 |
|
|
|
2,218 |
|
Restricted other invested assets related to securitization entities |
|
|
412 |
|
|
|
410 |
|
|
|
411 |
|
|
|
411 |
|
|
|
404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments |
|
|
72,184 |
|
|
|
71,408 |
|
|
|
73,154 |
|
|
|
72,008 |
|
|
|
71,817 |
|
Cash and cash equivalents |
|
|
3,666 |
|
|
|
4,100 |
|
|
|
4,971 |
|
|
|
4,716 |
|
|
|
3,284 |
|
Accrued investment income |
|
|
685 |
|
|
|
615 |
|
|
|
717 |
|
|
|
664 |
|
|
|
694 |
|
Deferred acquisition costs |
|
|
4,437 |
|
|
|
4,896 |
|
|
|
4,745 |
|
|
|
4,849 |
|
|
|
4,870 |
|
Intangible assets |
|
|
284 |
|
|
|
286 |
|
|
|
207 |
|
|
|
250 |
|
|
|
277 |
|
Goodwill |
|
|
14 |
|
|
|
15 |
|
|
|
15 |
|
|
|
16 |
|
|
|
316 |
|
Reinsurance recoverable |
|
|
17,276 |
|
|
|
17,297 |
|
|
|
17,305 |
|
|
|
17,314 |
|
|
|
17,342 |
|
Other assets |
|
|
577 |
|
|
|
625 |
|
|
|
518 |
|
|
|
524 |
|
|
|
569 |
|
Separate account assets |
|
|
7,893 |
|
|
|
8,702 |
|
|
|
9,064 |
|
|
|
9,208 |
|
|
|
9,420 |
|
Assets held for sale related to discontinued operations(1) |
|
|
1,206 |
|
|
|
1,220 |
|
|
|
1,635 |
|
|
|
1,809 |
|
|
|
1,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
108,222 |
|
|
$ |
109,164 |
|
|
$ |
112,331 |
|
|
$ |
111,358 |
|
|
$ |
110,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The assets held for sale related to discontinued operations prior to the sale have been segregated in the consolidated balance sheets. The major asset categories for discontinued operations were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
ASSETS |
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities available-for-sale, at fair value |
|
$ |
1,117 |
|
|
$ |
1,104 |
|
|
$ |
1,037 |
|
|
$ |
1,171 |
|
|
$ |
1,226 |
|
Equity securities available-for-sale, at fair value |
|
|
6 |
|
|
|
7 |
|
|
|
7 |
|
|
|
7 |
|
|
|
7 |
|
Other invested assets |
|
|
23 |
|
|
|
24 |
|
|
|
26 |
|
|
|
52 |
|
|
|
64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments |
|
|
1,146 |
|
|
|
1,135 |
|
|
|
1,070 |
|
|
|
1,230 |
|
|
|
1,297 |
|
Cash and cash equivalents |
|
|
142 |
|
|
|
154 |
|
|
|
187 |
|
|
|
202 |
|
|
|
193 |
|
Accrued investment income |
|
|
22 |
|
|
|
20 |
|
|
|
19 |
|
|
|
21 |
|
|
|
25 |
|
Deferred acquisition costs |
|
|
168 |
|
|
|
176 |
|
|
|
173 |
|
|
|
193 |
|
|
|
215 |
|
Intangible assets |
|
|
22 |
|
|
|
21 |
|
|
|
20 |
|
|
|
22 |
|
|
|
23 |
|
Reinsurance recoverable |
|
|
36 |
|
|
|
35 |
|
|
|
34 |
|
|
|
32 |
|
|
|
31 |
|
Other assets |
|
|
121 |
|
|
|
137 |
|
|
|
132 |
|
|
|
109 |
|
|
|
141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets held for sale related to discontinued operations |
|
|
1,657 |
|
|
|
1,678 |
|
|
|
1,635 |
|
|
|
1,809 |
|
|
|
1,925 |
|
Fair value less pension settlement costs and closing costs impairment |
|
|
(451 |
) |
|
|
(458 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets held for sale related to discontinued operations |
|
$ |
1,206 |
|
|
$ |
1,220 |
|
|
$ |
1,635 |
|
|
$ |
1,809 |
|
|
$ |
1,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Consolidated Balance Sheets
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
36,472 |
|
|
$ |
36,298 |
|
|
$ |
36,488 |
|
|
$ |
35,915 |
|
|
$ |
34,697 |
|
Policyholder account balances |
|
|
26,000 |
|
|
|
25,987 |
|
|
|
26,136 |
|
|
|
26,032 |
|
|
|
25,816 |
|
Liability for policy and contract claims |
|
|
8,065 |
|
|
|
7,990 |
|
|
|
7,929 |
|
|
|
7,937 |
|
|
|
7,880 |
|
Unearned premiums |
|
|
3,340 |
|
|
|
3,431 |
|
|
|
3,321 |
|
|
|
3,547 |
|
|
|
3,597 |
|
Other liabilities |
|
|
3,241 |
|
|
|
3,136 |
|
|
|
3,623 |
|
|
|
3,282 |
|
|
|
3,274 |
|
Borrowings related to securitization entities |
|
|
188 |
|
|
|
199 |
|
|
|
205 |
|
|
|
219 |
|
|
|
225 |
|
Non-recourse funding obligations |
|
|
1,951 |
|
|
|
1,967 |
|
|
|
1,983 |
|
|
|
1,996 |
|
|
|
2,010 |
|
Long-term borrowings |
|
|
4,601 |
|
|
|
4,607 |
|
|
|
4,601 |
|
|
|
4,639 |
|
|
|
4,662 |
|
Deferred tax liability |
|
|
201 |
|
|
|
258 |
|
|
|
1,057 |
|
|
|
858 |
|
|
|
825 |
|
Separate account liabilities |
|
|
7,893 |
|
|
|
8,702 |
|
|
|
9,064 |
|
|
|
9,208 |
|
|
|
9,420 |
|
Liabilities held for sale related to discontinued operations(1) |
|
|
854 |
|
|
|
862 |
|
|
|
843 |
|
|
|
928 |
|
|
|
987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
92,806 |
|
|
|
93,437 |
|
|
|
95,250 |
|
|
|
94,561 |
|
|
|
93,393 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
11,944 |
|
|
|
11,940 |
|
|
|
11,998 |
|
|
|
11,997 |
|
|
|
11,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized investment gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on securities not other-than-temporarily impaired |
|
|
1,709 |
|
|
|
1,606 |
|
|
|
2,724 |
|
|
|
2,431 |
|
|
|
2,047 |
|
Net unrealized gains (losses) on other-than-temporarily impaired securities |
|
|
22 |
|
|
|
22 |
|
|
|
24 |
|
|
|
22 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized investment gains (losses) |
|
|
1,731 |
|
|
|
1,628 |
|
|
|
2,748 |
|
|
|
2,453 |
|
|
|
2,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives qualifying as hedges |
|
|
2,130 |
|
|
|
1,913 |
|
|
|
2,247 |
|
|
|
2,070 |
|
|
|
1,753 |
|
Foreign currency translation and other adjustments |
|
|
(383 |
) |
|
|
(232 |
) |
|
|
(303 |
) |
|
|
(77 |
) |
|
|
114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accumulated other comprehensive income |
|
|
3,478 |
|
|
|
3,309 |
|
|
|
4,692 |
|
|
|
4,446 |
|
|
|
3,934 |
|
Retained earnings |
|
|
856 |
|
|
|
1,140 |
|
|
|
1,333 |
|
|
|
1,179 |
|
|
|
1,939 |
|
Treasury stock, at cost |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
13,579 |
|
|
|
13,690 |
|
|
|
15,324 |
|
|
|
14,923 |
|
|
|
15,165 |
|
Noncontrolling interests |
|
|
1,837 |
|
|
|
2,037 |
|
|
|
1,757 |
|
|
|
1,874 |
|
|
|
1,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity |
|
|
15,416 |
|
|
|
15,727 |
|
|
|
17,081 |
|
|
|
16,797 |
|
|
|
17,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
108,222 |
|
|
$ |
109,164 |
|
|
$ |
112,331 |
|
|
$ |
111,358 |
|
|
$ |
110,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The liabilities held for sale related to discontinued operations prior to the sale have been segregated in the consolidated balance sheets. The major liability categories for discontinued operations were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policyholder account balances |
|
$ |
9 |
|
|
$ |
10 |
|
|
$ |
10 |
|
|
$ |
11 |
|
|
$ |
11 |
|
Liability for policy and contract claims |
|
|
108 |
|
|
|
108 |
|
|
|
101 |
|
|
|
106 |
|
|
|
107 |
|
Unearned premiums |
|
|
412 |
|
|
|
420 |
|
|
|
410 |
|
|
|
439 |
|
|
|
487 |
|
Other liabilities |
|
|
296 |
|
|
|
294 |
|
|
|
276 |
|
|
|
322 |
|
|
|
332 |
|
Deferred tax liability |
|
|
29 |
|
|
|
30 |
|
|
|
46 |
|
|
|
50 |
|
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities held for sale related to discontinued operations |
|
$ |
854 |
|
|
$ |
862 |
|
|
$ |
843 |
|
|
$ |
928 |
|
|
$ |
987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Consolidated Balance Sheet by
Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
|
International Mortgage Insurance |
|
|
U.S. Mortgage Insurance |
|
|
U.S. Life Insurance |
|
|
Runoff |
|
|
Corporate and Other(1) |
|
|
Total |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments |
|
$ |
7,499 |
|
|
$ |
2,209 |
|
|
$ |
61,322 |
|
|
$ |
2,742 |
|
|
$ |
2,763 |
|
|
$ |
76,535 |
|
Deferred acquisition costs and intangible assets |
|
|
164 |
|
|
|
29 |
|
|
|
4,254 |
|
|
|
280 |
|
|
|
8 |
|
|
|
4,735 |
|
Reinsurance recoverable |
|
|
21 |
|
|
|
6 |
|
|
|
16,420 |
|
|
|
829 |
|
|
|
|
|
|
|
17,276 |
|
Deferred tax and other assets |
|
|
89 |
|
|
|
38 |
|
|
|
349 |
|
|
|
18 |
|
|
|
83 |
|
|
|
577 |
|
Separate account assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,893 |
|
|
|
|
|
|
|
7,893 |
|
Assets held for sale related to discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,206 |
|
|
|
1,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
7,773 |
|
|
$ |
2,282 |
|
|
$ |
82,345 |
|
|
$ |
11,762 |
|
|
$ |
4,060 |
|
|
$ |
108,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS 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 |
|
|
303 |
|
|
|
953 |
|
|
|
6,791 |
|
|
|
18 |
|
|
|
|
|
|
|
8,065 |
|
Unearned premiums |
|
|
2,482 |
|
|
|
240 |
|
|
|
613 |
|
|
|
5 |
|
|
|
|
|
|
|
3,340 |
|
Non-recourse funding obligations |
|
|
|
|
|
|
|
|
|
|
1,981 |
|
|
|
|
|
|
|
(30 |
) |
|
|
1,951 |
|
Deferred tax and other liabilities |
|
|
237 |
|
|
|
(565 |
) |
|
|
3,512 |
|
|
|
(1 |
) |
|
|
259 |
|
|
|
3,442 |
|
Borrowings and capital securities |
|
|
501 |
|
|
|
|
|
|
|
|
|
|
|
11 |
|
|
|
4,277 |
|
|
|
4,789 |
|
Separate account liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,893 |
|
|
|
|
|
|
|
7,893 |
|
Liabilities held for sale related to discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
854 |
|
|
|
854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
3,523 |
|
|
|
628 |
|
|
|
72,151 |
|
|
|
11,144 |
|
|
|
5,360 |
|
|
|
92,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated equity, excluding accumulated other comprehensive income (loss) |
|
|
2,574 |
|
|
|
1,642 |
|
|
|
6,485 |
|
|
|
634 |
|
|
|
(1,234 |
) |
|
|
10,101 |
|
Allocated accumulated other comprehensive income (loss) |
|
|
(161 |
) |
|
|
12 |
|
|
|
3,709 |
|
|
|
(16 |
) |
|
|
(66 |
) |
|
|
3,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
2,413 |
|
|
|
1,654 |
|
|
|
10,194 |
|
|
|
618 |
|
|
|
(1,300 |
) |
|
|
13,579 |
|
Noncontrolling interests |
|
|
1,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity |
|
|
4,250 |
|
|
|
1,654 |
|
|
|
10,194 |
|
|
|
618 |
|
|
|
(1,300 |
) |
|
|
15,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
7,773 |
|
|
$ |
2,282 |
|
|
$ |
82,345 |
|
|
$ |
11,762 |
|
|
$ |
4,060 |
|
|
$ |
108,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes inter-segment eliminations. |
12
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Consolidated Balance Sheet by Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015 |
|
|
|
International Mortgage Insurance |
|
|
U.S. Mortgage Insurance |
|
|
U.S. Life Insurance |
|
|
Runoff |
|
|
Corporate and Other(1) |
|
|
Total |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments |
|
$ |
8,114 |
|
|
$ |
2,269 |
|
|
$ |
60,452 |
|
|
$ |
2,678 |
|
|
$ |
2,610 |
|
|
$ |
76,123 |
|
Deferred acquisition costs and intangible assets |
|
|
173 |
|
|
|
26 |
|
|
|
4,691 |
|
|
|
298 |
|
|
|
9 |
|
|
|
5,197 |
|
Reinsurance recoverable |
|
|
21 |
|
|
|
7 |
|
|
|
16,440 |
|
|
|
829 |
|
|
|
|
|
|
|
17,297 |
|
Deferred tax and other assets |
|
|
175 |
|
|
|
39 |
|
|
|
351 |
|
|
|
(8 |
) |
|
|
68 |
|
|
|
625 |
|
Separate account assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,702 |
|
|
|
|
|
|
|
8,702 |
|
Assets held for sale related to discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,220 |
|
|
|
1,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
8,483 |
|
|
$ |
2,341 |
|
|
$ |
81,934 |
|
|
$ |
12,499 |
|
|
$ |
3,907 |
|
|
$ |
109,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
|
|
|
$ |
|
|
|
$ |
36,294 |
|
|
$ |
4 |
|
|
$ |
|
|
|
$ |
36,298 |
|
Policyholder account balances |
|
|
|
|
|
|
|
|
|
|
22,837 |
|
|
|
3,150 |
|
|
|
|
|
|
|
25,987 |
|
Liability for policy and contract claims |
|
|
308 |
|
|
|
996 |
|
|
|
6,671 |
|
|
|
15 |
|
|
|
|
|
|
|
7,990 |
|
Unearned premiums |
|
|
2,602 |
|
|
|
214 |
|
|
|
608 |
|
|
|
7 |
|
|
|
|
|
|
|
3,431 |
|
Non-recourse funding obligations |
|
|
|
|
|
|
|
|
|
|
1,997 |
|
|
|
|
|
|
|
(30 |
) |
|
|
1,967 |
|
Deferred tax and other liabilities |
|
|
458 |
|
|
|
(612 |
) |
|
|
3,436 |
|
|
|
(25 |
) |
|
|
137 |
|
|
|
3,394 |
|
Borrowings and capital securities |
|
|
456 |
|
|
|
|
|
|
|
|
|
|
|
12 |
|
|
|
4,338 |
|
|
|
4,806 |
|
Separate account liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,702 |
|
|
|
|
|
|
|
8,702 |
|
Liabilities held for sale related to discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
862 |
|
|
|
862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
3,824 |
|
|
|
598 |
|
|
|
71,843 |
|
|
|
11,865 |
|
|
|
5,307 |
|
|
|
93,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated equity, excluding accumulated other comprehensive income (loss) |
|
|
2,618 |
|
|
|
1,731 |
|
|
|
6,744 |
|
|
|
650 |
|
|
|
(1,362 |
) |
|
|
10,381 |
|
Allocated accumulated other comprehensive income (loss) |
|
|
4 |
|
|
|
12 |
|
|
|
3,347 |
|
|
|
(16 |
) |
|
|
(38 |
) |
|
|
3,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genworth Financial, Inc.s stockholders equity |
|
|
2,622 |
|
|
|
1,743 |
|
|
|
10,091 |
|
|
|
634 |
|
|
|
(1,400 |
) |
|
|
13,690 |
|
Noncontrolling interests |
|
|
2,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity |
|
|
4,659 |
|
|
|
1,743 |
|
|
|
10,091 |
|
|
|
634 |
|
|
|
(1,400 |
) |
|
|
15,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
8,483 |
|
|
$ |
2,341 |
|
|
$ |
81,934 |
|
|
$ |
12,499 |
|
|
$ |
3,907 |
|
|
$ |
109,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes inter-segment eliminations. |
13
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Deferred Acquisition Costs Rollforward
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Mortgage Insurance |
|
|
U.S. Mortgage Insurance |
|
|
U.S. Life Insurance(1) |
|
|
Runoff(2) |
|
|
Corporate and Other |
|
|
Total |
|
Unamortized balance as of June 30, 2015 |
|
$ |
147 |
|
|
$ |
19 |
|
|
$ |
4,722 |
|
|
$ |
286 |
|
|
$ |
|
|
|
$ |
5,174 |
|
Costs deferred |
|
|
16 |
|
|
|
4 |
|
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
71 |
|
Amortization, net of interest accretion |
|
|
(13 |
) |
|
|
(2 |
) |
|
|
(65 |
) |
|
|
(17 |
) |
|
|
|
|
|
|
(97 |
) |
Impact of foreign currency translation |
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10 |
) |
Impairment(3) |
|
|
|
|
|
|
|
|
|
|
(455 |
) |
|
|
|
|
|
|
|
|
|
|
(455 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unamortized balance as of September 30, 2015 |
|
|
140 |
|
|
|
21 |
|
|
|
4,253 |
|
|
|
269 |
|
|
|
|
|
|
|
4,683 |
|
Effect of accumulated net unrealized investment (gains) losses |
|
|
|
|
|
|
|
|
|
|
(242 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
(246 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of September 30, 2015 |
|
$ |
140 |
|
|
$ |
21 |
|
|
$ |
4,011 |
|
|
$ |
265 |
|
|
$ |
|
|
|
$ |
4,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Amortization, net of interest accretion, included $4 million of amortization related to net investment gains for the policyholder account balances. |
(2) |
Amortization, net of interest accretion, included $4 million of amortization related to net investment gains for the policyholder account balances. |
(3) |
In the third quarter of 2015, the company recorded a DAC impairment of $455 million on certain term life insurance policies in connection with entering into an agreement to complete a life block transaction.
|
14
Global Mortgage Insurance Division
15
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating IncomeGlobal Mortgage Insurance Division
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
361 |
|
|
$ |
364 |
|
|
$ |
365 |
|
|
$ |
1,090 |
|
|
$ |
387 |
|
|
$ |
388 |
|
|
$ |
381 |
|
|
$ |
372 |
|
|
$ |
1,528 |
|
Net investment income |
|
|
72 |
|
|
|
76 |
|
|
|
85 |
|
|
|
233 |
|
|
|
87 |
|
|
|
97 |
|
|
|
86 |
|
|
|
92 |
|
|
|
362 |
|
Net investment gains (losses) |
|
|
(19 |
) |
|
|
20 |
|
|
|
(17 |
) |
|
|
(16 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
12 |
|
|
|
(3 |
) |
|
|
1 |
|
Insurance and investment product fees and other |
|
|
|
|
|
|
1 |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
2 |
|
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
414 |
|
|
|
461 |
|
|
|
431 |
|
|
|
1,306 |
|
|
|
466 |
|
|
|
474 |
|
|
|
476 |
|
|
|
463 |
|
|
|
1,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
117 |
|
|
|
99 |
|
|
|
94 |
|
|
|
310 |
|
|
|
145 |
|
|
|
199 |
|
|
|
107 |
|
|
|
110 |
|
|
|
561 |
|
Acquisition and operating expenses, net of deferrals |
|
|
90 |
|
|
|
94 |
|
|
|
79 |
|
|
|
263 |
|
|
|
101 |
|
|
|
87 |
|
|
|
93 |
|
|
|
82 |
|
|
|
363 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
16 |
|
|
|
16 |
|
|
|
16 |
|
|
|
48 |
|
|
|
16 |
|
|
|
16 |
|
|
|
17 |
|
|
|
17 |
|
|
|
66 |
|
Interest expense |
|
|
8 |
|
|
|
6 |
|
|
|
7 |
|
|
|
21 |
|
|
|
7 |
|
|
|
8 |
|
|
|
8 |
|
|
|
8 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
231 |
|
|
|
215 |
|
|
|
196 |
|
|
|
642 |
|
|
|
269 |
|
|
|
310 |
|
|
|
225 |
|
|
|
217 |
|
|
|
1,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
183 |
|
|
|
246 |
|
|
|
235 |
|
|
|
664 |
|
|
|
197 |
|
|
|
164 |
|
|
|
251 |
|
|
|
246 |
|
|
|
858 |
|
Provision for income taxes |
|
|
62 |
|
|
|
75 |
|
|
|
75 |
|
|
|
212 |
|
|
|
237 |
|
|
|
24 |
|
|
|
61 |
|
|
|
80 |
|
|
|
402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
121 |
|
|
|
171 |
|
|
|
160 |
|
|
|
452 |
|
|
|
(40 |
) |
|
|
140 |
|
|
|
190 |
|
|
|
166 |
|
|
|
456 |
|
Less: net income attributable to noncontrolling interests |
|
|
46 |
|
|
|
54 |
|
|
|
50 |
|
|
|
150 |
|
|
|
52 |
|
|
|
57 |
|
|
|
52 |
|
|
|
35 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
|
75 |
|
|
|
117 |
|
|
|
110 |
|
|
|
302 |
|
|
|
(92 |
) |
|
|
83 |
|
|
|
138 |
|
|
|
131 |
|
|
|
260 |
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON
STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
8 |
|
|
|
(7 |
) |
|
|
6 |
|
|
|
7 |
|
|
|
1 |
|
|
|
2 |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
|
|
(Gains) losses on early extinguishment of debt, net |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
2 |
|
Tax impact from potential business portfolio changes |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
7 |
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME(1) |
|
$ |
91 |
|
|
$ |
110 |
|
|
$ |
116 |
|
|
$ |
317 |
|
|
$ |
83 |
|
|
$ |
85 |
|
|
$ |
136 |
|
|
$ |
132 |
|
|
$ |
436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income)(2) |
|
|
31.6 |
% |
|
|
32.3 |
% |
|
|
33.0 |
% |
|
|
32.4 |
% |
|
|
34.0 |
% |
|
|
11.3 |
% |
|
|
23.3 |
% |
|
|
33.9 |
% |
|
|
27.2 |
% |
(1) |
Net operating income adjusted for foreign exchange as compared to the prior year period for the Global Mortgage Insurance Division was $104 million and $349 million for the three and nine months ended September 30,
2015, respectively. |
(2) |
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. |
16
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income (Loss)Global Mortgage Insurance
Division
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Mortgage Insurance Segment |
|
|
|
|
|
|
|
Three months ended September 30, 2015 |
|
Canada |
|
|
Australia |
|
|
Other Countries |
|
|
Total International Mortgage Insurance Segment |
|
|
U.S. Mortgage Insurance Segment |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
116 |
|
|
$ |
92 |
|
|
$ |
7 |
|
|
$ |
215 |
|
|
$ |
146 |
|
|
$ |
361 |
|
Net investment income |
|
|
32 |
|
|
|
28 |
|
|
|
|
|
|
|
60 |
|
|
|
12 |
|
|
|
72 |
|
Net investment gains (losses) |
|
|
(23 |
) |
|
|
3 |
|
|
|
|
|
|
|
(20 |
) |
|
|
1 |
|
|
|
(19 |
) |
Insurance and investment product fees and other |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
124 |
|
|
|
122 |
|
|
|
7 |
|
|
|
253 |
|
|
|
161 |
|
|
|
414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
24 |
|
|
|
27 |
|
|
|
3 |
|
|
|
54 |
|
|
|
63 |
|
|
|
117 |
|
Acquisition and operating expenses, net of deferrals |
|
|
16 |
|
|
|
27 |
|
|
|
9 |
|
|
|
52 |
|
|
|
38 |
|
|
|
90 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
9 |
|
|
|
4 |
|
|
|
|
|
|
|
13 |
|
|
|
3 |
|
|
|
16 |
|
Interest expense |
|
|
5 |
|
|
|
3 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
54 |
|
|
|
61 |
|
|
|
12 |
|
|
|
127 |
|
|
|
104 |
|
|
|
231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
70 |
|
|
|
61 |
|
|
|
(5 |
) |
|
|
126 |
|
|
|
57 |
|
|
|
183 |
|
Provision for income taxes |
|
|
17 |
|
|
|
18 |
|
|
|
7 |
|
|
|
42 |
|
|
|
20 |
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
53 |
|
|
|
43 |
|
|
|
(12 |
) |
|
|
84 |
|
|
|
37 |
|
|
|
121 |
|
Less: net income attributable to noncontrolling interests |
|
|
24 |
|
|
|
22 |
|
|
|
|
|
|
|
46 |
|
|
|
|
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
|
29 |
|
|
|
21 |
|
|
|
(12 |
) |
|
|
38 |
|
|
|
37 |
|
|
|
75 |
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON
STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
9 |
|
|
|
(1 |
) |
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
8 |
|
(Gains) losses on early extinguishment of debt, net |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
Tax impact from potential business portfolio changes |
|
|
|
|
|
|
|
|
|
|
7 |
|
|
|
7 |
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
38 |
|
|
$ |
21 |
|
|
$ |
(5 |
) |
|
$ |
54 |
|
|
$ |
37 |
|
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
27.2 |
% |
|
|
28.0 |
% |
|
|
8.2 |
% |
|
|
28.8 |
% |
|
|
35.4 |
% |
|
|
31.6 |
% |
|
|
|
|
|
|
International Mortgage Insurance Segment |
|
|
|
|
|
|
|
Three months ended September 30, 2014 |
|
Canada |
|
|
Australia |
|
|
Other Countries |
|
|
Total International Mortgage Insurance Segment |
|
|
U.S. Mortgage Insurance Segment |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
130 |
|
|
$ |
105 |
|
|
$ |
7 |
|
|
$ |
242 |
|
|
$ |
146 |
|
|
$ |
388 |
|
Net investment income |
|
|
39 |
|
|
|
38 |
|
|
|
1 |
|
|
|
78 |
|
|
|
19 |
|
|
|
97 |
|
Net investment gains (losses) |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
(4 |
) |
Insurance and investment product fees and other |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
2 |
|
|
|
(7 |
) |
|
|
|
|
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
163 |
|
|
|
136 |
|
|
|
10 |
|
|
|
309 |
|
|
|
165 |
|
|
|
474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
28 |
|
|
|
22 |
|
|
|
8 |
|
|
|
58 |
|
|
|
141 |
|
|
|
199 |
|
Acquisition and operating expenses, net of deferrals |
|
|
18 |
|
|
|
25 |
|
|
|
9 |
|
|
|
52 |
|
|
|
35 |
|
|
|
87 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
10 |
|
|
|
5 |
|
|
|
|
|
|
|
15 |
|
|
|
1 |
|
|
|
16 |
|
Interest expense |
|
|
5 |
|
|
|
3 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
61 |
|
|
|
55 |
|
|
|
17 |
|
|
|
133 |
|
|
|
177 |
|
|
|
310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
102 |
|
|
|
81 |
|
|
|
(7 |
) |
|
|
176 |
|
|
|
(12 |
) |
|
|
164 |
|
Provision (benefit) for income taxes |
|
|
24 |
|
|
|
10 |
|
|
|
|
|
|
|
34 |
|
|
|
(10 |
) |
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
78 |
|
|
|
71 |
|
|
|
(7 |
) |
|
|
142 |
|
|
|
(2 |
) |
|
|
140 |
|
Less: net income attributable to noncontrolling interests |
|
|
34 |
|
|
|
23 |
|
|
|
|
|
|
|
57 |
|
|
|
|
|
|
|
57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
|
44 |
|
|
|
48 |
|
|
|
(7 |
) |
|
|
85 |
|
|
|
(2 |
) |
|
|
83 |
|
|
|
|
|
|
|
|
ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
46 |
|
|
$ |
48 |
|
|
$ |
(7 |
) |
|
$ |
87 |
|
|
$ |
(2 |
) |
|
$ |
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
21.2 |
% |
|
|
14.2 |
% |
|
|
-2.2 |
% |
|
|
19.0 |
% |
|
|
80.1 |
% |
|
|
11.3 |
% |
17
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income (Loss)Global Mortgage Insurance Division
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Mortgage Insurance Segment |
|
|
|
|
|
|
|
Nine months ended September 30, 2015 |
|
Canada |
|
|
Australia |
|
|
Other Countries |
|
|
Total International Mortgage Insurance Segment |
|
|
U.S. Mortgage Insurance Segment |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
351 |
|
|
$ |
271 |
|
|
$ |
19 |
|
|
$ |
641 |
|
|
$ |
449 |
|
|
$ |
1,090 |
|
Net investment income |
|
|
99 |
|
|
|
89 |
|
|
|
1 |
|
|
|
189 |
|
|
|
44 |
|
|
|
233 |
|
Net investment gains (losses) |
|
|
(21 |
) |
|
|
4 |
|
|
|
|
|
|
|
(17 |
) |
|
|
1 |
|
|
|
(16 |
) |
Insurance and investment product fees and other |
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
(4 |
) |
|
|
3 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
429 |
|
|
|
360 |
|
|
|
20 |
|
|
|
809 |
|
|
|
497 |
|
|
|
1,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
70 |
|
|
|
66 |
|
|
|
11 |
|
|
|
147 |
|
|
|
163 |
|
|
|
310 |
|
Acquisition and operating expenses, net of deferrals |
|
|
50 |
|
|
|
74 |
|
|
|
26 |
|
|
|
150 |
|
|
|
113 |
|
|
|
263 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
27 |
|
|
|
14 |
|
|
|
|
|
|
|
41 |
|
|
|
7 |
|
|
|
48 |
|
Interest expense |
|
|
14 |
|
|
|
7 |
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
161 |
|
|
|
161 |
|
|
|
37 |
|
|
|
359 |
|
|
|
283 |
|
|
|
642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
268 |
|
|
|
199 |
|
|
|
(17 |
) |
|
|
450 |
|
|
|
214 |
|
|
|
664 |
|
Provision for income taxes |
|
|
70 |
|
|
|
60 |
|
|
|
6 |
|
|
|
136 |
|
|
|
76 |
|
|
|
212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
198 |
|
|
|
139 |
|
|
|
(23 |
) |
|
|
314 |
|
|
|
138 |
|
|
|
452 |
|
Less: net income attributable to noncontrolling interests |
|
|
91 |
|
|
|
59 |
|
|
|
|
|
|
|
150 |
|
|
|
|
|
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
|
107 |
|
|
|
80 |
|
|
|
(23 |
) |
|
|
164 |
|
|
|
138 |
|
|
|
302 |
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON
STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
8 |
|
|
|
(1 |
) |
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
7 |
|
(Gains) losses on early extinguishment of debt, net |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
Tax impact from potential business portfolio changes |
|
|
|
|
|
|
|
|
|
|
7 |
|
|
|
7 |
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
115 |
|
|
$ |
80 |
|
|
$ |
(16 |
) |
|
$ |
179 |
|
|
$ |
138 |
|
|
$ |
317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
27.5 |
% |
|
|
29.5 |
% |
|
|
7.4 |
% |
|
|
29.7 |
% |
|
|
35.6 |
% |
|
|
32.4 |
% |
|
|
|
|
|
|
International Mortgage Insurance Segment |
|
|
|
|
|
|
|
Nine months ended September 30, 2014 |
|
Canada |
|
|
Australia |
|
|
Other Countries |
|
|
Total International Mortgage Insurance Segment |
|
|
U.S. Mortgage Insurance Segment |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
388 |
|
|
$ |
304 |
|
|
$ |
22 |
|
|
$ |
714 |
|
|
$ |
427 |
|
|
$ |
1,141 |
|
Net investment income |
|
|
117 |
|
|
|
108 |
|
|
|
2 |
|
|
|
227 |
|
|
|
48 |
|
|
|
275 |
|
Net investment gains (losses) |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
5 |
|
Insurance and investment product fees and other |
|
|
1 |
|
|
|
(11 |
) |
|
|
1 |
|
|
|
(9 |
) |
|
|
1 |
|
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
511 |
|
|
|
401 |
|
|
|
25 |
|
|
|
937 |
|
|
|
476 |
|
|
|
1,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
69 |
|
|
|
63 |
|
|
|
18 |
|
|
|
150 |
|
|
|
266 |
|
|
|
416 |
|
Acquisition and operating expenses, net of deferrals |
|
|
67 |
|
|
|
67 |
|
|
|
26 |
|
|
|
160 |
|
|
|
102 |
|
|
|
262 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
29 |
|
|
|
16 |
|
|
|
|
|
|
|
45 |
|
|
|
5 |
|
|
|
50 |
|
Interest expense |
|
|
16 |
|
|
|
8 |
|
|
|
|
|
|
|
24 |
|
|
|
|
|
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
181 |
|
|
|
154 |
|
|
|
44 |
|
|
|
379 |
|
|
|
373 |
|
|
|
752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
330 |
|
|
|
247 |
|
|
|
(19 |
) |
|
|
558 |
|
|
|
103 |
|
|
|
661 |
|
Provision (benefit) for income taxes |
|
|
87 |
|
|
|
46 |
|
|
|
(1 |
) |
|
|
132 |
|
|
|
33 |
|
|
|
165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
243 |
|
|
|
201 |
|
|
|
(18 |
) |
|
|
426 |
|
|
|
70 |
|
|
|
496 |
|
Less: net income attributable to noncontrolling interests |
|
|
110 |
|
|
|
34 |
|
|
|
|
|
|
|
144 |
|
|
|
|
|
|
|
144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
|
133 |
|
|
|
167 |
|
|
|
(18 |
) |
|
|
282 |
|
|
|
70 |
|
|
|
352 |
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON
STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
(Gains) losses on early extinguishment of debt, net |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
134 |
|
|
$ |
167 |
|
|
$ |
(18 |
) |
|
$ |
283 |
|
|
$ |
70 |
|
|
$ |
353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
26.4 |
% |
|
|
19.3 |
% |
|
|
6.4 |
% |
|
|
23.5 |
% |
|
|
32.1 |
% |
|
|
25.4 |
% |
18
International Mortgage Insurance Segment
19
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net
Operating IncomeInternational Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
215 |
|
|
$ |
211 |
|
|
$ |
215 |
|
|
$ |
641 |
|
|
$ |
236 |
|
|
$ |
242 |
|
|
$ |
237 |
|
|
$ |
235 |
|
|
$ |
950 |
|
Net investment income |
|
|
60 |
|
|
|
63 |
|
|
|
66 |
|
|
|
189 |
|
|
|
76 |
|
|
|
78 |
|
|
|
75 |
|
|
|
74 |
|
|
|
303 |
|
Net investment gains (losses) |
|
|
(20 |
) |
|
|
20 |
|
|
|
(17 |
) |
|
|
(17 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
12 |
|
|
|
(3 |
) |
|
|
1 |
|
Insurance and investment product fees and other |
|
|
(2 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
2 |
|
|
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
253 |
|
|
|
295 |
|
|
|
261 |
|
|
|
809 |
|
|
|
303 |
|
|
|
309 |
|
|
|
320 |
|
|
|
308 |
|
|
|
1,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
54 |
|
|
|
49 |
|
|
|
44 |
|
|
|
147 |
|
|
|
54 |
|
|
|
58 |
|
|
|
45 |
|
|
|
47 |
|
|
|
204 |
|
Acquisition and operating expenses, net of deferrals |
|
|
52 |
|
|
|
56 |
|
|
|
42 |
|
|
|
150 |
|
|
|
63 |
|
|
|
52 |
|
|
|
59 |
|
|
|
49 |
|
|
|
223 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
13 |
|
|
|
14 |
|
|
|
14 |
|
|
|
41 |
|
|
|
14 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
59 |
|
Interest expense |
|
|
8 |
|
|
|
6 |
|
|
|
7 |
|
|
|
21 |
|
|
|
7 |
|
|
|
8 |
|
|
|
8 |
|
|
|
8 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
127 |
|
|
|
125 |
|
|
|
107 |
|
|
|
359 |
|
|
|
138 |
|
|
|
133 |
|
|
|
127 |
|
|
|
119 |
|
|
|
517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
126 |
|
|
|
170 |
|
|
|
154 |
|
|
|
450 |
|
|
|
165 |
|
|
|
176 |
|
|
|
193 |
|
|
|
189 |
|
|
|
723 |
|
Provision for income taxes |
|
|
42 |
|
|
|
48 |
|
|
|
46 |
|
|
|
136 |
|
|
|
226 |
|
|
|
34 |
|
|
|
42 |
|
|
|
56 |
|
|
|
358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
84 |
|
|
|
122 |
|
|
|
108 |
|
|
|
314 |
|
|
|
(61 |
) |
|
|
142 |
|
|
|
151 |
|
|
|
133 |
|
|
|
365 |
|
Less: net income attributable to noncontrolling interests |
|
|
46 |
|
|
|
54 |
|
|
|
50 |
|
|
|
150 |
|
|
|
52 |
|
|
|
57 |
|
|
|
52 |
|
|
|
35 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
|
38 |
|
|
|
68 |
|
|
|
58 |
|
|
|
164 |
|
|
|
(113 |
) |
|
|
85 |
|
|
|
99 |
|
|
|
98 |
|
|
|
169 |
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON
STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
8 |
|
|
|
(7 |
) |
|
|
6 |
|
|
|
7 |
|
|
|
1 |
|
|
|
2 |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
|
|
(Gains) losses on early extinguishment of debt, net |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
2 |
|
Tax impact from potential business portfolio changes |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
7 |
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME(1) |
|
$ |
54 |
|
|
$ |
61 |
|
|
$ |
64 |
|
|
$ |
179 |
|
|
$ |
62 |
|
|
$ |
87 |
|
|
$ |
97 |
|
|
$ |
99 |
|
|
$ |
345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income) |
|
|
28.8 |
% |
|
|
29.2 |
% |
|
|
30.7 |
% |
|
|
29.7 |
% |
|
|
34.5 |
% |
|
|
19.0 |
% |
|
|
18.8 |
% |
|
|
30.7 |
% |
|
|
25.7 |
% |
(1) |
Net operating income adjusted for foreign exchange as compared to the prior year period for the International Mortgage Insurance segment was $67 million and $211 million for the three and nine months ended
September 30, 2015, respectively. |
20
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income and SalesInternational Mortgage Insurance SegmentCanada
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
116 |
|
|
$ |
116 |
|
|
$ |
119 |
|
|
$ |
351 |
|
|
$ |
127 |
|
|
$ |
130 |
|
|
$ |
128 |
|
|
$ |
130 |
|
|
$ |
515 |
|
Net investment income |
|
|
32 |
|
|
|
33 |
|
|
|
34 |
|
|
|
99 |
|
|
|
38 |
|
|
|
39 |
|
|
|
39 |
|
|
|
39 |
|
|
|
155 |
|
Net investment gains (losses) |
|
|
(23 |
) |
|
|
20 |
|
|
|
(18 |
) |
|
|
(21 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
12 |
|
|
|
(3 |
) |
|
|
(2 |
) |
Insurance and investment product fees and other |
|
|
(1 |
) |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
124 |
|
|
|
169 |
|
|
|
136 |
|
|
|
429 |
|
|
|
158 |
|
|
|
163 |
|
|
|
180 |
|
|
|
168 |
|
|
|
669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
24 |
|
|
|
21 |
|
|
|
25 |
|
|
|
70 |
|
|
|
33 |
|
|
|
28 |
|
|
|
15 |
|
|
|
26 |
|
|
|
102 |
|
Acquisition and operating expenses, net of deferrals |
|
|
16 |
|
|
|
22 |
|
|
|
12 |
|
|
|
50 |
|
|
|
23 |
|
|
|
18 |
|
|
|
28 |
|
|
|
21 |
|
|
|
90 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
27 |
|
|
|
9 |
|
|
|
10 |
|
|
|
9 |
|
|
|
10 |
|
|
|
38 |
|
Interest expense |
|
|
5 |
|
|
|
4 |
|
|
|
5 |
|
|
|
14 |
|
|
|
5 |
|
|
|
5 |
|
|
|
6 |
|
|
|
5 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
54 |
|
|
|
56 |
|
|
|
51 |
|
|
|
161 |
|
|
|
70 |
|
|
|
61 |
|
|
|
58 |
|
|
|
62 |
|
|
|
251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
70 |
|
|
|
113 |
|
|
|
85 |
|
|
|
268 |
|
|
|
88 |
|
|
|
102 |
|
|
|
122 |
|
|
|
106 |
|
|
|
418 |
|
Provision for income taxes |
|
|
17 |
|
|
|
31 |
|
|
|
22 |
|
|
|
70 |
|
|
|
24 |
|
|
|
24 |
|
|
|
32 |
|
|
|
31 |
|
|
|
111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
53 |
|
|
|
82 |
|
|
|
63 |
|
|
|
198 |
|
|
|
64 |
|
|
|
78 |
|
|
|
90 |
|
|
|
75 |
|
|
|
307 |
|
Less: net income attributable to noncontrolling interests |
|
|
24 |
|
|
|
38 |
|
|
|
29 |
|
|
|
91 |
|
|
|
30 |
|
|
|
34 |
|
|
|
41 |
|
|
|
35 |
|
|
|
140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
|
29 |
|
|
|
44 |
|
|
|
34 |
|
|
|
107 |
|
|
|
34 |
|
|
|
44 |
|
|
|
49 |
|
|
|
40 |
|
|
|
167 |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
9 |
|
|
|
(7 |
) |
|
|
6 |
|
|
|
8 |
|
|
|
2 |
|
|
|
2 |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
1 |
|
(Gains) losses on early extinguishment of debt, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME(1) |
|
$ |
38 |
|
|
$ |
37 |
|
|
$ |
40 |
|
|
$ |
115 |
|
|
$ |
36 |
|
|
$ |
46 |
|
|
$ |
47 |
|
|
$ |
41 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income) |
|
|
27.2 |
% |
|
|
27.3 |
% |
|
|
27.9 |
% |
|
|
27.5 |
% |
|
|
29.4 |
% |
|
|
21.2 |
% |
|
|
26.3 |
% |
|
|
31.6 |
% |
|
|
27.1 |
% |
|
|
|
|
|
|
|
|
|
|
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Insurance Written (NIW) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
6,600 |
|
|
$ |
5,400 |
|
|
$ |
3,300 |
|
|
$ |
15,300 |
|
|
$ |
5,500 |
|
|
$ |
6,800 |
|
|
$ |
5,000 |
|
|
$ |
2,900 |
|
|
$ |
20,200 |
|
Bulk |
|
|
4,800 |
|
|
|
3,300 |
|
|
|
5,000 |
|
|
|
13,100 |
|
|
|
2,300 |
|
|
|
5,600 |
|
|
|
7,500 |
|
|
|
2,900 |
|
|
|
18,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Canada NIW(2) |
|
$ |
11,400 |
|
|
$ |
8,700 |
|
|
$ |
8,300 |
|
|
$ |
28,400 |
|
|
$ |
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 $132 million for the three and nine months ended September 30, 2015,
respectively. |
(2) |
New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $13,400 million and $32,300 million for the three and nine months ended September 30, 2015,
respectively. |
21
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income and SalesInternational Mortgage Insurance SegmentAustralia
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
92 |
|
|
$ |
90 |
|
|
$ |
89 |
|
|
$ |
271 |
|
|
$ |
102 |
|
|
$ |
105 |
|
|
$ |
102 |
|
|
$ |
97 |
|
|
$ |
406 |
|
Net investment income |
|
|
28 |
|
|
|
29 |
|
|
|
32 |
|
|
|
89 |
|
|
|
36 |
|
|
|
38 |
|
|
|
36 |
|
|
|
34 |
|
|
|
144 |
|
Net investment gains (losses) |
|
|
3 |
|
|
|
|
|
|
|
1 |
|
|
|
4 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
Insurance and investment product fees and other |
|
|
(1 |
) |
|
|
1 |
|
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
122 |
|
|
|
120 |
|
|
|
118 |
|
|
|
360 |
|
|
|
136 |
|
|
|
136 |
|
|
|
134 |
|
|
|
131 |
|
|
|
537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
27 |
|
|
|
25 |
|
|
|
14 |
|
|
|
66 |
|
|
|
15 |
|
|
|
22 |
|
|
|
24 |
|
|
|
17 |
|
|
|
78 |
|
Acquisition and operating expenses, net of deferrals |
|
|
27 |
|
|
|
25 |
|
|
|
22 |
|
|
|
74 |
|
|
|
30 |
|
|
|
25 |
|
|
|
23 |
|
|
|
19 |
|
|
|
97 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
4 |
|
|
|
5 |
|
|
|
5 |
|
|
|
14 |
|
|
|
5 |
|
|
|
5 |
|
|
|
6 |
|
|
|
5 |
|
|
|
21 |
|
Interest expense |
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
|
3 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
61 |
|
|
|
57 |
|
|
|
43 |
|
|
|
161 |
|
|
|
52 |
|
|
|
55 |
|
|
|
55 |
|
|
|
44 |
|
|
|
206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
61 |
|
|
|
63 |
|
|
|
75 |
|
|
|
199 |
|
|
|
84 |
|
|
|
81 |
|
|
|
79 |
|
|
|
87 |
|
|
|
331 |
|
Provision for income taxes |
|
|
18 |
|
|
|
18 |
|
|
|
24 |
|
|
|
60 |
|
|
|
202 |
|
|
|
10 |
|
|
|
11 |
|
|
|
25 |
|
|
|
248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
43 |
|
|
|
45 |
|
|
|
51 |
|
|
|
139 |
|
|
|
(118 |
) |
|
|
71 |
|
|
|
68 |
|
|
|
62 |
|
|
|
83 |
|
Less: net income attributable to noncontrolling interests |
|
|
22 |
|
|
|
16 |
|
|
|
21 |
|
|
|
59 |
|
|
|
22 |
|
|
|
23 |
|
|
|
11 |
|
|
|
|
|
|
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
|
21 |
|
|
|
29 |
|
|
|
30 |
|
|
|
80 |
|
|
|
(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 |
) |
|
|
(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) |
|
$ |
21 |
|
|
$ |
29 |
|
|
$ |
30 |
|
|
$ |
80 |
|
|
$ |
33 |
|
|
$ |
48 |
|
|
$ |
57 |
|
|
$ |
62 |
|
|
$ |
200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income) |
|
|
28.0 |
% |
|
|
29.5 |
% |
|
|
30.5 |
% |
|
|
29.5 |
% |
|
|
34.8 |
% |
|
|
14.2 |
% |
|
|
10.4 |
% |
|
|
29.0 |
% |
|
|
22.3 |
% |
|
|
|
|
|
|
|
|
|
|
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Insurance Written (NIW) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
6,300 |
|
|
$ |
6,500 |
|
|
$ |
5,800 |
|
|
$ |
18,600 |
|
|
$ |
8,000 |
|
|
$ |
8,100 |
|
|
$ |
7,900 |
|
|
$ |
7,800 |
|
|
$ |
31,800 |
|
Bulk |
|
|
|
|
|
|
1,700 |
|
|
|
|
|
|
|
1,700 |
|
|
|
100 |
|
|
|
1,000 |
|
|
|
|
|
|
|
|
|
|
|
1,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Australia NIW(2) |
|
$ |
6,300 |
|
|
$ |
8,200 |
|
|
$ |
5,800 |
|
|
$ |
20,300 |
|
|
$ |
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 $27 million and $95 million for the three and nine months ended September 30, 2015,
respectively. |
(2) |
New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $7,900 million and $24,100 million for the three and nine months ended September 30, 2015,
respectively. |
22
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Loss and SalesInternational Mortgage Insurance SegmentOther
Countries
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
7 |
|
|
$ |
5 |
|
|
$ |
7 |
|
|
$ |
19 |
|
|
$ |
7 |
|
|
$ |
7 |
|
|
$ |
7 |
|
|
$ |
8 |
|
|
$ |
29 |
|
Net investment income |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
4 |
|
Net investment gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance and investment product fees and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
(1 |
) |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
7 |
|
|
|
6 |
|
|
|
7 |
|
|
|
20 |
|
|
|
9 |
|
|
|
10 |
|
|
|
6 |
|
|
|
9 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
3 |
|
|
|
3 |
|
|
|
5 |
|
|
|
11 |
|
|
|
6 |
|
|
|
8 |
|
|
|
6 |
|
|
|
4 |
|
|
|
24 |
|
Acquisition and operating expenses, net of deferrals |
|
|
9 |
|
|
|
9 |
|
|
|
8 |
|
|
|
26 |
|
|
|
10 |
|
|
|
9 |
|
|
|
8 |
|
|
|
9 |
|
|
|
36 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
12 |
|
|
|
12 |
|
|
|
13 |
|
|
|
37 |
|
|
|
16 |
|
|
|
17 |
|
|
|
14 |
|
|
|
13 |
|
|
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
(17 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
|
|
(4 |
) |
|
|
(26 |
) |
Provision (benefit) for income taxes |
|
|
7 |
|
|
|
(1 |
) |
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(12 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(23 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
(25 |
) |
Less: net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS |
|
|
(12 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(23 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
(25 |
) |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO LOSS FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.S COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax impact from potential business portfolio changes |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING LOSS(1) |
|
$ |
(5 |
) |
|
$ |
(5 |
) |
|
$ |
(6 |
) |
|
$ |
(16 |
) |
|
$ |
(7 |
) |
|
$ |
(7 |
) |
|
$ |
(7 |
) |
|
$ |
(4 |
) |
|
$ |
(25 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating loss) |
|
|
8.2 |
% |
|
|
10.0 |
% |
|
|
4.9 |
% |
|
|
7.4 |
% |
|
|
-4.2 |
% |
|
|
-2.2 |
% |
|
|
11.3 |
% |
|
|
10.3 |
% |
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
|
|
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Insurance Written (NIW) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
600 |
|
|
$ |
500 |
|
|
$ |
400 |
|
|
$ |
1,500 |
|
|
$ |
500 |
|
|
$ |
400 |
|
|
$ |
500 |
|
|
$ |
400 |
|
|
$ |
1,800 |
|
Bulk |
|
|
|
|
|
|
|
|
|
|
200 |
|
|
|
200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Countries NIW(2) |
|
$ |
600 |
|
|
$ |
500 |
|
|
$ |
600 |
|
|
$ |
1,700 |
|
|
$ |
500 |
|
|
$ |
400 |
|
|
$ |
500 |
|
|
$ |
400 |
|
|
$ |
1,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Net operating loss for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $5 million and $16 million for the three and nine months ended September 30, 2015,
respectively. |
(2) |
New insurance written for the Other Countries platform adjusted for foreign exchange as compared to the prior year period was $700 million and $2,000 million for the three and nine months ended September 30, 2015,
respectively. |
23
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Selected Key Performance MeasuresInternational Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Net Premiums Written |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
|
$ |
204 |
|
|
$ |
166 |
|
|
$ |
109 |
|
|
$ |
479 |
|
|
$ |
160 |
|
|
$ |
200 |
|
|
$ |
146 |
|
|
$ |
77 |
|
|
$ |
583 |
|
Australia |
|
|
79 |
|
|
|
107 |
|
|
|
87 |
|
|
|
273 |
|
|
|
128 |
|
|
|
130 |
|
|
|
125 |
|
|
|
126 |
|
|
|
509 |
|
Other Countries(1) |
|
|
7 |
|
|
|
6 |
|
|
|
6 |
|
|
|
19 |
|
|
|
6 |
|
|
|
6 |
|
|
|
1 |
|
|
|
6 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Premiums Written |
|
$ |
290 |
|
|
$ |
279 |
|
|
$ |
202 |
|
|
$ |
771 |
|
|
$ |
294 |
|
|
$ |
336 |
|
|
$ |
272 |
|
|
$ |
209 |
|
|
$ |
1,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Ratio(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
|
|
21 |
% |
|
|
17 |
% |
|
|
22 |
% |
|
|
20 |
% |
|
|
26 |
% |
|
|
21 |
% |
|
|
12 |
% |
|
|
20 |
% |
|
|
20 |
% |
Australia(3) |
|
|
29 |
% |
|
|
28 |
% |
|
|
15 |
% |
|
|
24 |
% |
|
|
15 |
% |
|
|
21 |
% |
|
|
23 |
% |
|
|
17 |
% |
|
|
19 |
% |
Other Countries |
|
|
48 |
% |
|
|
43 |
% |
|
|
81 |
% |
|
|
58 |
% |
|
|
84 |
% |
|
|
105 |
% |
|
|
90 |
% |
|
|
55 |
% |
|
|
83 |
% |
Total Loss Ratio |
|
|
25 |
% |
|
|
23 |
% |
|
|
21 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
24 |
% |
|
|
19 |
% |
|
|
20 |
% |
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
GAAP Basis Expense Ratio(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada(5) |
|
|
22 |
% |
|
|
27 |
% |
|
|
18 |
% |
|
|
22 |
% |
|
|
26 |
% |
|
|
22 |
% |
|
|
29 |
% |
|
|
23 |
% |
|
|
25 |
% |
Australia(6) |
|
|
34 |
% |
|
|
33 |
% |
|
|
30 |
% |
|
|
33 |
% |
|
|
34 |
% |
|
|
28 |
% |
|
|
28 |
% |
|
|
25 |
% |
|
|
29 |
% |
Other Countries(1) |
|
|
143 |
% |
|
|
143 |
% |
|
|
125 |
% |
|
|
137 |
% |
|
|
115 |
% |
|
|
126 |
% |
|
|
131 |
% |
|
|
107 |
% |
|
|
120 |
% |
Total GAAP Basis Expense Ratio |
|
|
31 |
% |
|
|
33 |
% |
|
|
26 |
% |
|
|
30 |
% |
|
|
32 |
% |
|
|
28 |
% |
|
|
32 |
% |
|
|
27 |
% |
|
|
30 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted Expense Ratio(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada(8) |
|
|
12 |
% |
|
|
19 |
% |
|
|
20 |
% |
|
|
16 |
% |
|
|
20 |
% |
|
|
14 |
% |
|
|
26 |
% |
|
|
39 |
% |
|
|
22 |
% |
Australia(9) |
|
|
40 |
% |
|
|
28 |
% |
|
|
31 |
% |
|
|
32 |
% |
|
|
27 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
20 |
% |
|
|
23 |
% |
Other Countries(1) |
|
|
132 |
% |
|
|
135 |
% |
|
|
132 |
% |
|
|
133 |
% |
|
|
132 |
% |
|
|
150 |
% |
|
|
NM |
(10) |
|
|
142 |
% |
|
|
186 |
% |
Total Adjusted Expense Ratio |
|
|
23 |
% |
|
|
25 |
% |
|
|
28 |
% |
|
|
25 |
% |
|
|
26 |
% |
|
|
20 |
% |
|
|
28 |
% |
|
|
30 |
% |
|
|
25 |
% |
The loss and expense ratios included above were calculated using whole dollars and may be different than the ratios calculated
using the rounded numbers included herein.
(1) |
Includes the impact of settlements and cancelled insurance contracts, primarily with lenders in Europe. |
(2) |
The ratio of incurred losses and loss adjustment expenses to net earned premiums. |
(3) |
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.
|
(4) |
The ratio of an insurers general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.
|
(5) |
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. |
(6) |
The debt early redemption payment of $2 million in the third quarter of 2015 unfavorably impacted the GAAP basis expense ratio for the three and nine months ended September 30, 2015 by two percentage points and one
percentage point, respectively. |
(7) |
The ratio of an insurers 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.
|
(8) |
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. |
(9) |
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.
|
(10) |
NM is defined as not meaningful for percentages greater than 200%. |
24
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Selected Key Performance MeasuresInternational Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
Primary Insurance In-Force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada(1) |
|
$ |
292,000 |
|
|
$ |
300,900 |
|
|
$ |
288,800 |
|
|
$ |
306,600 |
|
|
$ |
310,800 |
|
|
$ |
314,500 |
|
|
$ |
291,900 |
|
Australia |
|
|
224,100 |
|
|
|
243,800 |
|
|
|
240,900 |
|
|
|
256,000 |
|
|
|
271,100 |
|
|
|
288,500 |
|
|
|
281,000 |
|
Other Countries |
|
|
20,400 |
|
|
|
20,500 |
|
|
|
19,800 |
|
|
|
21,900 |
|
|
|
23,900 |
|
|
|
26,000 |
|
|
|
26,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary Insurance In-Force |
|
$ |
536,500 |
|
|
$ |
565,200 |
|
|
$ |
549,500 |
|
|
$ |
584,500 |
|
|
$ |
605,800 |
|
|
$ |
629,000 |
|
|
$ |
599,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Risk In-Force(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
75,500 |
|
|
$ |
78,500 |
|
|
$ |
75,700 |
|
|
$ |
81,300 |
|
|
$ |
82,600 |
|
|
$ |
84,500 |
|
|
$ |
80,100 |
|
Bulk |
|
|
26,700 |
|
|
|
26,800 |
|
|
|
25,400 |
|
|
|
26,000 |
|
|
|
26,200 |
|
|
|
25,600 |
|
|
|
22,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Canada |
|
|
102,200 |
|
|
|
105,300 |
|
|
|
101,100 |
|
|
|
107,300 |
|
|
|
108,800 |
|
|
|
110,100 |
|
|
|
102,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
|
72,900 |
|
|
|
79,100 |
|
|
|
78,600 |
|
|
|
83,400 |
|
|
|
88,100 |
|
|
|
93,800 |
|
|
|
91,100 |
|
Bulk |
|
|
5,500 |
|
|
|
6,200 |
|
|
|
5,700 |
|
|
|
6,200 |
|
|
|
6,800 |
|
|
|
7,200 |
|
|
|
7,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Australia |
|
|
78,400 |
|
|
|
85,300 |
|
|
|
84,300 |
|
|
|
89,600 |
|
|
|
94,900 |
|
|
|
101,000 |
|
|
|
98,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Countries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow(3),(4) |
|
|
2,000 |
|
|
|
2,000 |
|
|
|
2,000 |
|
|
|
2,200 |
|
|
|
3,000 |
|
|
|
3,200 |
|
|
|
3,300 |
|
Bulk |
|
|
300 |
|
|
|
300 |
|
|
|
300 |
|
|
|
300 |
|
|
|
300 |
|
|
|
400 |
|
|
|
400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Countries |
|
|
2,300 |
|
|
|
2,300 |
|
|
|
2,300 |
|
|
|
2,500 |
|
|
|
3,300 |
|
|
|
3,600 |
|
|
|
3,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary Risk In-Force |
|
$ |
182,900 |
|
|
$ |
192,900 |
|
|
$ |
187,700 |
|
|
$ |
199,400 |
|
|
$ |
207,000 |
|
|
$ |
214,700 |
|
|
$ |
204,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
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 $142.0 billion, $137.0 billion, $145.0 billion, $148.0 billion, $152.0 billion and $141.0 billion as of 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. |
(2) |
The businesses in Australia and Canada currently provide 100% coverage on the majority of the loans the company insures in those markets. For the purpose of representing the risk in-force, the company has computed an
effective risk in-force amount which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a
factor that represents the highest expected average per-claim payment for any one underwriting year over the life of the businesses in Australia and Canada. This factor was 35% for all periods presented. 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.
|
(3) |
Includes the impact of settlements and cancelled insurance contracts, primarily with lenders in Europe. Primary flow risk in-force excludes $320 million, $300 million, $271 million, $296 million, $290 million, $298
million and $282 million of risk in-force in Europe ceded under quota share reinsurance agreements as of September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, September 30,
2014, June 30, 2014 and March 31, 2014, respectively. |
(4) |
Beginning in the fourth quarter of 2014, risk in-force reflects a maximum risk exposure of approximately $60 million with one lender in Ireland as a result of a settlement completed during the fourth quarter of 2014.
|
25
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Selected Key Performance MeasuresInternational Mortgage Insurance SegmentCanada
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Insurance |
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
|
|
|
Insured loans in-force(1),(2) |
|
|
1,785,541 |
|
|
|
1,737,083 |
|
|
|
1,704,483 |
|
|
|
1,673,505 |
|
|
|
1,646,223 |
|
|
|
|
|
Insured delinquent loans |
|
|
1,715 |
|
|
|
1,666 |
|
|
|
1,792 |
|
|
|
1,756 |
|
|
|
1,708 |
|
|
|
|
|
Insured delinquency rate(2),(3) |
|
|
0.10 |
% |
|
|
0.10 |
% |
|
|
0.11 |
% |
|
|
0.10 |
% |
|
|
0.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
Flow loans in-force(1) |
|
|
1,313,034 |
|
|
|
1,287,744 |
|
|
|
1,266,626 |
|
|
|
1,255,050 |
|
|
|
1,236,206 |
|
|
|
|
|
Flow delinquent loans |
|
|
1,449 |
|
|
|
1,435 |
|
|
|
1,532 |
|
|
|
1,493 |
|
|
|
1,477 |
|
|
|
|
|
Flow delinquency rate(3) |
|
|
0.11 |
% |
|
|
0.11 |
% |
|
|
0.12 |
% |
|
|
0.12 |
% |
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
Bulk loans in-force(1) |
|
|
472,507 |
|
|
|
449,339 |
|
|
|
437,857 |
|
|
|
418,455 |
|
|
|
410,017 |
|
|
|
|
|
Bulk delinquent loans |
|
|
266 |
|
|
|
231 |
|
|
|
260 |
|
|
|
263 |
|
|
|
231 |
|
|
|
|
|
Bulk delinquency rate(3) |
|
|
0.06 |
% |
|
|
0.05 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
Loss Metrics |
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
|
|
|
Beginning Reserves |
|
$ |
85 |
|
|
$ |
85 |
|
|
$ |
91 |
|
|
$ |
89 |
|
|
$ |
90 |
|
|
|
|
|
Paid claims(4) |
|
|
(20 |
) |
|
|
(21 |
) |
|
|
(22 |
) |
|
|
(24 |
) |
|
|
(24 |
) |
|
|
|
|
Increase in reserves |
|
|
23 |
|
|
|
19 |
|
|
|
24 |
|
|
|
29 |
|
|
|
27 |
|
|
|
|
|
Impact of changes in foreign exchange rates |
|
|
(5 |
) |
|
|
2 |
|
|
|
(8 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Reserves |
|
$ |
83 |
|
|
$ |
85 |
|
|
$ |
85 |
|
|
$ |
91 |
|
|
$ |
89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
September 30, 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 |
|
|
46 |
% |
|
|
0.05 |
% |
|
|
46 |
% |
|
|
0.04 |
% |
|
|
46 |
% |
|
|
0.06% |
|
Alberta |
|
|
17 |
|
|
|
0.10 |
% |
|
|
17 |
|
|
|
0.09 |
% |
|
|
17 |
|
|
|
0.09% |
|
British Columbia |
|
|
14 |
|
|
|
0.10 |
% |
|
|
14 |
|
|
|
0.11 |
% |
|
|
14 |
|
|
|
0.15% |
|
Quebec |
|
|
13 |
|
|
|
0.18 |
% |
|
|
14 |
|
|
|
0.19 |
% |
|
|
14 |
|
|
|
0.18% |
|
Saskatchewan |
|
|
3 |
|
|
|
0.15 |
% |
|
|
3 |
|
|
|
0.13 |
% |
|
|
3 |
|
|
|
0.12% |
|
Nova Scotia |
|
|
2 |
|
|
|
0.20 |
% |
|
|
2 |
|
|
|
0.20 |
% |
|
|
2 |
|
|
|
0.21% |
|
Manitoba |
|
|
2 |
|
|
|
0.08 |
% |
|
|
2 |
|
|
|
0.07 |
% |
|
|
2 |
|
|
|
0.04% |
|
New Brunswick |
|
|
1 |
|
|
|
0.19 |
% |
|
|
1 |
|
|
|
0.18 |
% |
|
|
1 |
|
|
|
0.22% |
|
All Other |
|
|
2 |
|
|
|
0.11 |
% |
|
|
1 |
|
|
|
0.12 |
% |
|
|
1 |
|
|
|
0.11% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
100 |
% |
|
|
0.10 |
% |
|
|
100 |
% |
|
|
0.10 |
% |
|
|
100 |
% |
|
|
0.10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By Policy Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006 and prior |
|
|
29 |
% |
|
|
0.03 |
% |
|
|
29 |
% |
|
|
0.02 |
% |
|
|
31 |
% |
|
|
0.03% |
|
2007 |
|
|
8 |
|
|
|
0.14 |
% |
|
|
8 |
|
|
|
0.15 |
% |
|
|
9 |
|
|
|
0.17% |
|
2008 |
|
|
6 |
|
|
|
0.17 |
% |
|
|
7 |
|
|
|
0.20 |
% |
|
|
7 |
|
|
|
0.21% |
|
2009 |
|
|
4 |
|
|
|
0.15 |
% |
|
|
4 |
|
|
|
0.16 |
% |
|
|
5 |
|
|
|
0.23% |
|
2010 |
|
|
7 |
|
|
|
0.21 |
% |
|
|
7 |
|
|
|
0.20 |
% |
|
|
8 |
|
|
|
0.25% |
|
2011 |
|
|
7 |
|
|
|
0.25 |
% |
|
|
7 |
|
|
|
0.25 |
% |
|
|
8 |
|
|
|
0.25% |
|
2012 |
|
|
9 |
|
|
|
0.21 |
% |
|
|
10 |
|
|
|
0.19 |
% |
|
|
11 |
|
|
|
0.16% |
|
2013 |
|
|
9 |
|
|
|
0.13 |
% |
|
|
10 |
|
|
|
0.10 |
% |
|
|
11 |
|
|
|
0.06% |
|
2014 |
|
|
11 |
|
|
|
0.06 |
% |
|
|
12 |
|
|
|
0.05 |
% |
|
|
10 |
|
|
|
0.01% |
|
2015 |
|
|
10 |
|
|
|
|
% |
|
|
6 |
|
|
|
|
% |
|
|
|
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 828,000 as of June 30, 2015, 809,100 as of March 31, 2015, 793,700 as of December 31, 2014 and 783,700 as of September 30, 2014. This is based on the extrapolation of the amounts
reported by lenders to the entire insured population. The corresponding insured delinquency rate was 0.20% as of June 30, 2015 and 0.22% as of March 31, 2015, December 31, 2014 and September 30, 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. |
26
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Selected Key Performance MeasuresInternational Mortgage Insurance SegmentCanada
(Canadian dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Paid Claims(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
25 |
|
|
$ |
25 |
|
|
$ |
25 |
|
|
$ |
75 |
|
|
$ |
26 |
|
|
$ |
25 |
|
|
$ |
28 |
|
|
$ |
28 |
|
|
$ |
107 |
|
Bulk |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
4 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Paid Claims |
|
$ |
26 |
|
|
$ |
26 |
|
|
$ |
27 |
|
|
$ |
79 |
|
|
$ |
27 |
|
|
$ |
26 |
|
|
$ |
28 |
|
|
$ |
29 |
|
|
$ |
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Paid Claim (in thousands) |
|
$ |
66.2 |
|
|
$ |
58.7 |
|
|
$ |
67.9 |
|
|
|
|
|
|
$ |
60.2 |
|
|
$ |
63.9 |
|
|
$ |
63.4 |
|
|
$ |
66.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Reserve Per Delinquency (in thousands) |
|
$ |
64.2 |
|
|
$ |
63.6 |
|
|
$ |
60.4 |
|
|
|
|
|
|
$ |
60.2 |
|
|
$ |
58.4 |
|
|
$ |
56.4 |
|
|
$ |
57.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Reserves |
|
$ |
106 |
|
|
$ |
108 |
|
|
$ |
106 |
|
|
|
|
|
|
$ |
100 |
|
|
$ |
96 |
|
|
$ |
107 |
|
|
$ |
108 |
|
|
|
|
|
Paid claims(1) |
|
|
(26 |
) |
|
|
(26 |
) |
|
|
(27 |
) |
|
|
|
|
|
|
(27 |
) |
|
|
(26 |
) |
|
|
(28 |
) |
|
|
(29 |
) |
|
|
|
|
Increase in reserves |
|
|
30 |
|
|
|
24 |
|
|
|
29 |
|
|
|
|
|
|
|
33 |
|
|
|
30 |
|
|
|
17 |
|
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Reserves |
|
$ |
110 |
|
|
$ |
106 |
|
|
$ |
108 |
|
|
|
|
|
|
$ |
106 |
|
|
$ |
100 |
|
|
$ |
96 |
|
|
$ |
107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Amount(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over $550K |
|
|
7 |
% |
|
|
6 |
% |
|
|
6 |
% |
|
|
|
|
|
|
6 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
$400K to $550K |
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
|
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
|
|
$250K to $400K |
|
|
33 |
|
|
|
33 |
|
|
|
33 |
|
|
|
|
|
|
|
33 |
|
|
|
32 |
|
|
|
32 |
|
|
|
32 |
|
|
|
|
|
$100K to $250K |
|
|
44 |
|
|
|
44 |
|
|
|
44 |
|
|
|
|
|
|
|
45 |
|
|
|
46 |
|
|
|
47 |
|
|
|
47 |
|
|
|
|
|
$100K or Less |
|
|
4 |
|
|
|
5 |
|
|
|
5 |
|
|
|
|
|
|
|
5 |
|
|
|
5 |
|
|
|
5 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Primary Loan Size (in thousands) |
|
$ |
218 |
|
|
$ |
216 |
|
|
$ |
215 |
|
|
|
|
|
|
$ |
213 |
|
|
$ |
212 |
|
|
$ |
209 |
|
|
$ |
208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Effective Loan-To-Value Ratios By Policy
Year(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006 and prior |
|
|
35 |
% |
|
|
35 |
% |
|
|
36 |
% |
|
|
|
|
|
|
36 |
% |
|
|
38 |
% |
|
|
39 |
% |
|
|
39 |
% |
|
|
|
|
2007 |
|
|
60 |
% |
|
|
61 |
% |
|
|
61 |
% |
|
|
|
|
|
|
61 |
% |
|
|
64 |
% |
|
|
64 |
% |
|
|
65 |
% |
|
|
|
|
2008 |
|
|
67 |
% |
|
|
68 |
% |
|
|
68 |
% |
|
|
|
|
|
|
68 |
% |
|
|
71 |
% |
|
|
71 |
% |
|
|
71 |
% |
|
|
|
|
2009 |
|
|
65 |
% |
|
|
66 |
% |
|
|
66 |
% |
|
|
|
|
|
|
66 |
% |
|
|
69 |
% |
|
|
70 |
% |
|
|
70 |
% |
|
|
|
|
2010 |
|
|
71 |
% |
|
|
73 |
% |
|
|
73 |
% |
|
|
|
|
|
|
73 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
77 |
% |
|
|
|
|
2011 |
|
|
75 |
% |
|
|
77 |
% |
|
|
77 |
% |
|
|
|
|
|
|
77 |
% |
|
|
80 |
% |
|
|
81 |
% |
|
|
81 |
% |
|
|
|
|
2012 |
|
|
80 |
% |
|
|
82 |
% |
|
|
82 |
% |
|
|
|
|
|
|
82 |
% |
|
|
86 |
% |
|
|
86 |
% |
|
|
87 |
% |
|
|
|
|
2013 |
|
|
84 |
% |
|
|
86 |
% |
|
|
86 |
% |
|
|
|
|
|
|
87 |
% |
|
|
90 |
% |
|
|
91 |
% |
|
|
91 |
% |
|
|
|
|
2014 |
|
|
90 |
% |
|
|
92 |
% |
|
|
92 |
% |
|
|
|
|
|
|
92 |
% |
|
|
93 |
% |
|
|
93 |
% |
|
|
|
% |
|
|
|
|
2015 |
|
|
93 |
% |
|
|
93 |
% |
|
|
|
% |
|
|
|
|
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
|
Total Flow |
|
|
55 |
% |
|
|
56 |
% |
|
|
56 |
% |
|
|
|
|
|
|
56 |
% |
|
|
57 |
% |
|
|
57 |
% |
|
|
57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Bulk |
|
|
43 |
% |
|
|
42 |
% |
|
|
42 |
% |
|
|
|
|
|
|
42 |
% |
|
|
42 |
% |
|
|
41 |
% |
|
|
41 |
% |
|
|
|
|
Total |
|
|
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. |
27
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Selected Key Performance MeasuresInternational Mortgage Insurance
SegmentAustralia
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Insurance |
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
|
|
|
Insured loans in-force |
|
|
1,479,676 |
|
|
|
1,481,755 |
|
|
|
1,498,197 |
|
|
|
1,496,616 |
|
|
|
1,490,221 |
|
|
|
|
|
Insured delinquent loans |
|
|
5,804 |
|
|
|
5,900 |
|
|
|
5,378 |
|
|
|
4,953 |
|
|
|
5,300 |
|
|
|
|
|
Insured delinquency rate |
|
|
0.39 |
% |
|
|
0.40 |
% |
|
|
0.36 |
% |
|
|
0.33 |
% |
|
|
0.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
Flow loans in-force |
|
|
1,364,537 |
|
|
|
1,364,653 |
|
|
|
1,382,156 |
|
|
|
1,378,584 |
|
|
|
1,370,136 |
|
|
|
|
|
Flow delinquent loans |
|
|
5,545 |
|
|
|
5,623 |
|
|
|
5,112 |
|
|
|
4,714 |
|
|
|
5,031 |
|
|
|
|
|
Flow delinquency rate |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.37 |
% |
|
|
0.34 |
% |
|
|
0.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
Bulk loans in-force |
|
|
115,139 |
|
|
|
117,102 |
|
|
|
116,041 |
|
|
|
118,032 |
|
|
|
120,085 |
|
|
|
|
|
Bulk delinquent loans |
|
|
259 |
|
|
|
277 |
|
|
|
266 |
|
|
|
239 |
|
|
|
269 |
|
|
|
|
|
Bulk delinquency rate |
|
|
0.22 |
% |
|
|
0.24 |
% |
|
|
0.23 |
% |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
Loss Metrics |
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
|
|
|
Beginning Reserves |
|
$ |
160 |
|
|
$ |
149 |
|
|
$ |
152 |
|
|
$ |
161 |
|
|
$ |
171 |
|
|
|
|
|
Paid claims(1) |
|
|
(16 |
) |
|
|
(15 |
) |
|
|
(14 |
) |
|
|
(14 |
) |
|
|
(19 |
) |
|
|
|
|
Increase in reserves |
|
|
27 |
|
|
|
25 |
|
|
|
21 |
|
|
|
15 |
|
|
|
22 |
|
|
|
|
|
Impact of changes in foreign exchange rates |
|
|
(15 |
) |
|
|
1 |
|
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Reserves |
|
$ |
156 |
|
|
$ |
160 |
|
|
$ |
149 |
|
|
$ |
152 |
|
|
$ |
161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
September 30, 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 |
% |
|
|
0.30 |
% |
|
|
29 |
% |
|
|
0.30 |
% |
|
|
29 |
% |
|
|
0.30% |
|
Queensland |
|
|
23 |
|
|
|
0.57 |
% |
|
|
23 |
|
|
|
0.57 |
% |
|
|
23 |
|
|
|
0.49% |
|
Victoria |
|
|
23 |
|
|
|
0.35 |
% |
|
|
23 |
|
|
|
0.34 |
% |
|
|
23 |
|
|
|
0.32% |
|
Western Australia |
|
|
11 |
|
|
|
0.45 |
% |
|
|
11 |
|
|
|
0.45 |
% |
|
|
11 |
|
|
|
0.34% |
|
South Australia |
|
|
6 |
|
|
|
0.50 |
% |
|
|
6 |
|
|
|
0.52 |
% |
|
|
6 |
|
|
|
0.43% |
|
Australian Capital Territory |
|
|
3 |
|
|
|
0.15 |
% |
|
|
3 |
|
|
|
0.14 |
% |
|
|
3 |
|
|
|
0.13% |
|
Tasmania |
|
|
2 |
|
|
|
0.31 |
% |
|
|
2 |
|
|
|
0.35 |
% |
|
|
2 |
|
|
|
0.31% |
|
New Zealand |
|
|
2 |
|
|
|
0.23 |
% |
|
|
2 |
|
|
|
0.27 |
% |
|
|
2 |
|
|
|
0.26% |
|
Northern Territory |
|
|
1 |
|
|
|
0.21 |
% |
|
|
1 |
|
|
|
0.24 |
% |
|
|
1 |
|
|
|
0.21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
100 |
% |
|
|
0.39 |
% |
|
|
100 |
% |
|
|
0.40 |
% |
|
|
100 |
% |
|
|
0.36% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By Policy Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006 and prior |
|
|
29 |
% |
|
|
0.24 |
% |
|
|
30 |
% |
|
|
0.25 |
% |
|
|
32 |
% |
|
|
0.22% |
|
2007 |
|
|
7 |
|
|
|
0.74 |
% |
|
|
7 |
|
|
|
0.78 |
% |
|
|
8 |
|
|
|
0.68% |
|
2008 |
|
|
7 |
|
|
|
0.93 |
% |
|
|
7 |
|
|
|
0.97 |
% |
|
|
8 |
|
|
|
0.93% |
|
2009 |
|
|
8 |
|
|
|
0.75 |
% |
|
|
8 |
|
|
|
0.73 |
% |
|
|
9 |
|
|
|
0.70% |
|
2010 |
|
|
6 |
|
|
|
0.44 |
% |
|
|
6 |
|
|
|
0.45 |
% |
|
|
7 |
|
|
|
0.38% |
|
2011 |
|
|
6 |
|
|
|
0.46 |
% |
|
|
7 |
|
|
|
0.46 |
% |
|
|
7 |
|
|
|
0.41% |
|
2012 |
|
|
9 |
|
|
|
0.51 |
% |
|
|
9 |
|
|
|
0.49 |
% |
|
|
10 |
|
|
|
0.33% |
|
2013 |
|
|
10 |
|
|
|
0.37 |
% |
|
|
10 |
|
|
|
0.32 |
% |
|
|
11 |
|
|
|
0.15% |
|
2014 |
|
|
11 |
|
|
|
0.16 |
% |
|
|
11 |
|
|
|
0.12 |
% |
|
|
8 |
|
|
|
0.01% |
|
2015 |
|
|
7 |
|
|
|
0.01 |
% |
|
|
5 |
|
|
|
|
% |
|
|
|
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
100 |
% |
|
|
0.39 |
% |
|
|
100 |
% |
|
|
0.40 |
% |
|
|
100 |
% |
|
|
0.36% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims. |
28
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Selected Key Performance MeasuresInternational Mortgage Insurance
SegmentAustralia
(Australian dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Paid Claims(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
21 |
|
|
$ |
19 |
|
|
$ |
17 |
|
|
$ |
57 |
|
|
$ |
15 |
|
|
$ |
20 |
|
|
$ |
25 |
|
|
$ |
30 |
|
|
$ |
90 |
|
Bulk |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Paid Claims |
|
$ |
21 |
|
|
$ |
19 |
|
|
$ |
18 |
|
|
$ |
58 |
|
|
$ |
15 |
|
|
$ |
21 |
|
|
$ |
25 |
|
|
$ |
30 |
|
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Paid Claim (in thousands) |
|
$ |
65.9 |
|
|
$ |
66.9 |
|
|
$ |
62.5 |
|
|
|
|
|
|
$ |
49.5 |
|
|
$ |
58.6 |
|
|
$ |
60.5 |
|
|
$ |
65.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Reserve Per Delinquency (in thousands) |
|
$ |
38.3 |
|
|
$ |
35.2 |
|
|
$ |
36.4 |
|
|
|
|
|
|
$ |
37.6 |
|
|
$ |
34.8 |
|
|
$ |
33.6 |
|
|
$ |
35.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Reserves |
|
$ |
208 |
|
|
$ |
196 |
|
|
$ |
186 |
|
|
|
|
|
|
$ |
184 |
|
|
$ |
181 |
|
|
$ |
181 |
|
|
$ |
192 |
|
|
|
|
|
Paid claims(1) |
|
|
(21 |
) |
|
|
(19 |
) |
|
|
(18 |
) |
|
|
|
|
|
|
(15 |
) |
|
|
(21 |
) |
|
|
(25 |
) |
|
|
(30 |
) |
|
|
|
|
Increase in reserves |
|
|
35 |
|
|
|
31 |
|
|
|
28 |
|
|
|
|
|
|
|
17 |
|
|
|
24 |
|
|
|
25 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Reserves |
|
$ |
222 |
|
|
$ |
208 |
|
|
$ |
196 |
|
|
|
|
|
|
$ |
186 |
|
|
$ |
184 |
|
|
$ |
181 |
|
|
$ |
181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Amount(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over $550K |
|
|
15 |
% |
|
|
14 |
% |
|
|
13 |
% |
|
|
|
|
|
|
13 |
% |
|
|
13 |
% |
|
|
12 |
% |
|
|
12 |
% |
|
|
|
|
$400K to $550K |
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
|
|
|
|
18 |
|
|
|
18 |
|
|
|
18 |
|
|
|
18 |
|
|
|
|
|
$250K to $400K |
|
|
36 |
|
|
|
36 |
|
|
|
37 |
|
|
|
|
|
|
|
37 |
|
|
|
37 |
|
|
|
37 |
|
|
|
37 |
|
|
|
|
|
$100K to $250K |
|
|
25 |
|
|
|
25 |
|
|
|
26 |
|
|
|
|
|
|
|
26 |
|
|
|
26 |
|
|
|
27 |
|
|
|
27 |
|
|
|
|
|
$100K or Less |
|
|
5 |
|
|
|
6 |
|
|
|
5 |
|
|
|
|
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Primary Loan Size (in thousands) |
|
$ |
216 |
|
|
$ |
213 |
|
|
$ |
211 |
|
|
|
|
|
|
$ |
210 |
|
|
$ |
208 |
|
|
$ |
207 |
|
|
$ |
205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Effective Loan-To-Value Ratios By Policy
Year(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006 and prior |
|
|
34 |
% |
|
|
35 |
% |
|
|
36 |
% |
|
|
|
|
|
|
36 |
% |
|
|
38 |
% |
|
|
38 |
% |
|
|
40 |
% |
|
|
|
|
2007 |
|
|
55 |
% |
|
|
56 |
% |
|
|
57 |
% |
|
|
|
|
|
|
58 |
% |
|
|
60 |
% |
|
|
61 |
% |
|
|
63 |
% |
|
|
|
|
2008 |
|
|
62 |
% |
|
|
63 |
% |
|
|
65 |
% |
|
|
|
|
|
|
66 |
% |
|
|
67 |
% |
|
|
68 |
% |
|
|
70 |
% |
|
|
|
|
2009 |
|
|
64 |
% |
|
|
65 |
% |
|
|
67 |
% |
|
|
|
|
|
|
68 |
% |
|
|
69 |
% |
|
|
70 |
% |
|
|
73 |
% |
|
|
|
|
2010 |
|
|
68 |
% |
|
|
70 |
% |
|
|
72 |
% |
|
|
|
|
|
|
73 |
% |
|
|
74 |
% |
|
|
76 |
% |
|
|
78 |
% |
|
|
|
|
2011 |
|
|
70 |
% |
|
|
72 |
% |
|
|
73 |
% |
|
|
|
|
|
|
74 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
80 |
% |
|
|
|
|
2012 |
|
|
71 |
% |
|
|
72 |
% |
|
|
74 |
% |
|
|
|
|
|
|
75 |
% |
|
|
77 |
% |
|
|
78 |
% |
|
|
80 |
% |
|
|
|
|
2013 |
|
|
75 |
% |
|
|
76 |
% |
|
|
78 |
% |
|
|
|
|
|
|
79 |
% |
|
|
81 |
% |
|
|
82 |
% |
|
|
84 |
% |
|
|
|
|
2014 |
|
|
82 |
% |
|
|
84 |
% |
|
|
85 |
% |
|
|
|
|
|
|
86 |
% |
|
|
87 |
% |
|
|
87 |
% |
|
|
|
% |
|
|
|
|
2015 |
|
|
87 |
% |
|
|
87 |
% |
|
|
|
% |
|
|
|
|
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
|
Total Flow |
|
|
59 |
% |
|
|
59 |
% |
|
|
60 |
% |
|
|
|
|
|
|
60 |
% |
|
|
61 |
% |
|
|
61 |
% |
|
|
62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Bulk |
|
|
27 |
% |
|
|
26 |
% |
|
|
27 |
% |
|
|
|
|
|
|
28 |
% |
|
|
28 |
% |
|
|
29 |
% |
|
|
30 |
% |
|
|
|
|
Total |
|
|
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. |
29
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Selected Key Performance MeasuresInternational Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk In-Force by Loan-To-Value Ratio(1) |
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
|
Primary |
|
|
Flow |
|
|
Bulk |
|
|
Primary |
|
|
Flow |
|
|
Bulk |
|
Canada |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95.01% and above |
|
$ |
35,931 |
|
|
$ |
35,931 |
|
|
$ |
|
|
|
$ |
37,068 |
|
|
$ |
37,068 |
|
|
$ |
|
|
90.01% to 95.00% |
|
|
22,766 |
|
|
|
22,766 |
|
|
|
|
|
|
|
23,753 |
|
|
|
23,753 |
|
|
|
|
|
80.01% to 90.00% |
|
|
13,978 |
|
|
|
13,975 |
|
|
|
3 |
|
|
|
14,714 |
|
|
|
14,711 |
|
|
|
3 |
|
80.00% and below |
|
|
29,541 |
|
|
|
2,790 |
|
|
|
26,751 |
|
|
|
29,767 |
|
|
|
2,922 |
|
|
|
26,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Canada |
|
$ |
102,216 |
|
|
$ |
75,462 |
|
|
$ |
26,754 |
|
|
$ |
105,302 |
|
|
$ |
78,454 |
|
|
$ |
26,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95.01% and above |
|
$ |
14,697 |
|
|
$ |
14,697 |
|
|
$ |
|
|
|
$ |
16,261 |
|
|
$ |
16,261 |
|
|
$ |
|
|
90.01% to 95.00% |
|
|
19,883 |
|
|
|
19,877 |
|
|
|
6 |
|
|
|
21,496 |
|
|
|
21,489 |
|
|
|
7 |
|
80.01% to 90.00% |
|
|
20,522 |
|
|
|
20,460 |
|
|
|
62 |
|
|
|
22,200 |
|
|
|
22,131 |
|
|
|
69 |
|
80.00% and below |
|
|
23,323 |
|
|
|
17,872 |
|
|
|
5,451 |
|
|
|
25,376 |
|
|
|
19,267 |
|
|
|
6,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Australia |
|
$ |
78,425 |
|
|
$ |
72,906 |
|
|
$ |
5,519 |
|
|
$ |
85,333 |
|
|
$ |
79,148 |
|
|
$ |
6,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Countries(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95.01% and above |
|
$ |
476 |
|
|
$ |
476 |
|
|
$ |
|
|
|
$ |
479 |
|
|
$ |
479 |
|
|
$ |
|
|
90.01% to 95.00% |
|
|
1,139 |
|
|
|
1,097 |
|
|
|
42 |
|
|
|
1,134 |
|
|
|
1,087 |
|
|
|
47 |
|
80.01% to 90.00% |
|
|
555 |
|
|
|
361 |
|
|
|
194 |
|
|
|
575 |
|
|
|
359 |
|
|
|
216 |
|
80.00% and below |
|
|
143 |
|
|
|
117 |
|
|
|
26 |
|
|
|
146 |
|
|
|
117 |
|
|
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Countries |
|
$ |
2,313 |
|
|
$ |
2,051 |
|
|
$ |
262 |
|
|
$ |
2,333 |
|
|
$ |
2,041 |
|
|
$ |
292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not total due to rounding.
(1) |
Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable. |
(2) |
Other Countries flow and primary risk in-force exclude $320 million and $300 million, respectively, of risk in-force in Europe ceded under quota share reinsurance agreements as of September 30, 2015 and
June 30, 2015. |
30
U.S. Mortgage Insurance Segment
31
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net
Operating Income (Loss) and SalesU.S. Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
146 |
|
|
$ |
153 |
|
|
$ |
150 |
|
|
$ |
449 |
|
|
$ |
151 |
|
|
$ |
146 |
|
|
$ |
144 |
|
|
$ |
137 |
|
|
$ |
578 |
|
Net investment income |
|
|
12 |
|
|
|
13 |
|
|
|
19 |
|
|
|
44 |
|
|
|
11 |
|
|
|
19 |
|
|
|
11 |
|
|
|
18 |
|
|
|
59 |
|
Net investment gains (losses) |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance and investment product fees and other |
|
|
2 |
|
|
|
|
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
161 |
|
|
|
166 |
|
|
|
170 |
|
|
|
497 |
|
|
|
163 |
|
|
|
165 |
|
|
|
156 |
|
|
|
155 |
|
|
|
639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
63 |
|
|
|
50 |
|
|
|
50 |
|
|
|
163 |
|
|
|
91 |
|
|
|
141 |
|
|
|
62 |
|
|
|
63 |
|
|
|
357 |
|
Acquisition and operating expenses, net of deferrals |
|
|
38 |
|
|
|
38 |
|
|
|
37 |
|
|
|
113 |
|
|
|
38 |
|
|
|
35 |
|
|
|
34 |
|
|
|
33 |
|
|
|
140 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
104 |
|
|
|
90 |
|
|
|
89 |
|
|
|
283 |
|
|
|
131 |
|
|
|
177 |
|
|
|
98 |
|
|
|
98 |
|
|
|
504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
57 |
|
|
|
76 |
|
|
|
81 |
|
|
|
214 |
|
|
|
32 |
|
|
|
(12 |
) |
|
|
58 |
|
|
|
57 |
|
|
|
135 |
|
Provision (benefit) for income taxes |
|
|
20 |
|
|
|
27 |
|
|
|
29 |
|
|
|
76 |
|
|
|
11 |
|
|
|
(10 |
) |
|
|
19 |
|
|
|
24 |
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
37 |
|
|
|
49 |
|
|
|
52 |
|
|
|
138 |
|
|
|
21 |
|
|
|
(2 |
) |
|
|
39 |
|
|
|
33 |
|
|
|
91 |
|
ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
37 |
|
|
$ |
49 |
|
|
$ |
52 |
|
|
$ |
138 |
|
|
$ |
21 |
|
|
$ |
(2 |
) |
|
$ |
39 |
|
|
$ |
33 |
|
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
35.4 |
% |
|
|
35.6 |
% |
|
|
35.7 |
% |
|
|
35.6 |
% |
|
|
32.5 |
% |
|
|
80.1 |
% |
|
|
32.4 |
% |
|
|
42.0 |
% |
|
|
32.2 |
% |
|
|
|
|
|
|
|
|
|
|
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Insurance Written (NIW) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
9,300 |
|
|
$ |
8,200 |
|
|
$ |
6,300 |
|
|
$ |
23,800 |
|
|
$ |
6,900 |
|
|
$ |
7,500 |
|
|
$ |
6,100 |
|
|
$ |
3,900 |
|
|
$ |
24,400 |
|
Bulk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Mortgage Insurance NIW |
|
$ |
9,300 |
|
|
$ |
8,200 |
|
|
$ |
6,300 |
|
|
$ |
23,800 |
|
|
$ |
6,900 |
|
|
$ |
7,500 |
|
|
$ |
6,100 |
|
|
$ |
3,900 |
|
|
$ |
24,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Flow New Insurance Written MetricsU.S. Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
|
Flow NIW |
|
|
Premium Rate (bps) |
|
|
Flow NIW |
|
|
Premium Rate (bps) |
|
|
Flow NIW |
|
|
Premium Rate (bps) |
|
|
Flow NIW |
|
|
Premium Rate (bps) |
|
|
Flow NIW |
|
|
Premium Rate (bps) |
|
|
Flow NIW |
|
|
Premium Rate (bps) |
|
|
Flow NIW |
|
|
Premium Rate (bps) |
|
Product |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monthly(1) |
|
$ |
7,000 |
|
|
|
60 |
|
|
$ |
6,500 |
|
|
|
60 |
|
|
$ |
4,400 |
|
|
|
60 |
|
|
$ |
5,100 |
|
|
|
60 |
|
|
$ |
6,100 |
|
|
|
59 |
|
|
$ |
5,300 |
|
|
|
59 |
|
|
$ |
3,400 |
|
|
|
58 |
|
Single |
|
|
2,300 |
|
|
|
171 |
|
|
|
1,700 |
|
|
|
172 |
|
|
|
1,900 |
|
|
|
160 |
|
|
|
1,800 |
|
|
|
155 |
|
|
|
1,400 |
|
|
|
194 |
|
|
|
800 |
|
|
|
197 |
|
|
|
500 |
|
|
|
200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Flow |
|
$ |
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 |
|
FICO Scores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over 735 |
|
$ |
5,500 |
|
|
|
59 |
% |
|
$ |
5,000 |
|
|
|
61 |
% |
|
$ |
3,700 |
|
|
|
59 |
% |
|
$ |
4,100 |
|
|
|
59 |
% |
|
$ |
4,400 |
|
|
|
59 |
% |
|
$ |
3,600 |
|
|
|
59 |
% |
|
$ |
2,400 |
|
|
|
61 |
% |
680735 |
|
|
3,000 |
|
|
|
32 |
|
|
|
2,500 |
|
|
|
30 |
|
|
|
2,100 |
|
|
|
33 |
|
|
|
2,200 |
|
|
|
32 |
|
|
|
2,400 |
|
|
|
32 |
|
|
|
2,000 |
|
|
|
33 |
|
|
|
1,200 |
|
|
|
31 |
|
660679(2) |
|
|
500 |
|
|
|
6 |
|
|
|
400 |
|
|
|
5 |
|
|
|
300 |
|
|
|
5 |
|
|
|
300 |
|
|
|
5 |
|
|
|
400 |
|
|
|
5 |
|
|
|
300 |
|
|
|
5 |
|
|
|
200 |
|
|
|
5 |
|
620659 |
|
|
300 |
|
|
|
3 |
|
|
|
300 |
|
|
|
4 |
|
|
|
200 |
|
|
|
3 |
|
|
|
300 |
|
|
|
4 |
|
|
|
300 |
|
|
|
4 |
|
|
|
200 |
|
|
|
3 |
|
|
|
100 |
|
|
|
3 |
|
<620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Flow |
|
$ |
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 |
|
$ |
500 |
|
|
|
5 |
% |
|
$ |
400 |
|
|
|
5 |
% |
|
$ |
300 |
|
|
|
5 |
% |
|
$ |
100 |
|
|
|
2 |
% |
|
$ |
200 |
|
|
|
3 |
% |
|
$ |
100 |
|
|
|
2 |
% |
|
$ |
100 |
|
|
|
3 |
% |
90.01% to 95.00% |
|
|
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% |
|
|
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 |
|
|
|
10 |
|
|
|
1,000 |
|
|
|
12 |
|
|
|
900 |
|
|
|
14 |
|
|
|
1,000 |
|
|
|
14 |
|
|
|
1,000 |
|
|
|
13 |
|
|
|
800 |
|
|
|
13 |
|
|
|
600 |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Flow |
|
$ |
9,300 |
|
|
|
100 |
% |
|
$ |
8,200 |
|
|
|
100 |
% |
|
$ |
6,300 |
|
|
|
100 |
% |
|
$ |
6,900 |
|
|
|
100 |
% |
|
$ |
7,500 |
|
|
|
100 |
% |
|
$ |
6,100 |
|
|
|
100 |
% |
|
$ |
3,900 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase |
|
$ |
8,100 |
|
|
|
87 |
% |
|
$ |
6,500 |
|
|
|
79 |
% |
|
$ |
4,300 |
|
|
|
68 |
% |
|
$ |
5,300 |
|
|
|
77 |
% |
|
$ |
6,400 |
|
|
|
85 |
% |
|
$ |
5,100 |
|
|
|
84 |
% |
|
$ |
3,000 |
|
|
|
77 |
% |
Refinance |
|
|
1,200 |
|
|
|
13 |
|
|
|
1,700 |
|
|
|
21 |
|
|
|
2,000 |
|
|
|
32 |
|
|
|
1,600 |
|
|
|
23 |
|
|
|
1,100 |
|
|
|
15 |
|
|
|
1,000 |
|
|
|
16 |
|
|
|
900 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Flow |
|
$ |
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. |
33
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Other MetricsU.S. Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Net Premiums Written |
|
$ |
171 |
|
|
$ |
170 |
|
|
$ |
170 |
|
|
$ |
511 |
|
|
$ |
171 |
|
|
$ |
162 |
|
|
$ |
151 |
|
|
$ |
144 |
|
|
$ |
628 |
|
|
|
|
|
|
|
|
|
|
|
New Risk Written |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
2,364 |
|
|
$ |
2,040 |
|
|
$ |
1,557 |
|
|
$ |
5,961 |
|
|
$ |
1,703 |
|
|
$ |
1,878 |
|
|
$ |
1,521 |
|
|
$ |
960 |
|
|
$ |
6,062 |
|
Bulk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
|
2,364 |
|
|
|
2,040 |
|
|
|
1,557 |
|
|
|
5,961 |
|
|
|
1,703 |
|
|
|
1,878 |
|
|
|
1,521 |
|
|
|
960 |
|
|
|
6,062 |
|
Pool |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total New Risk Written |
|
$ |
2,364 |
|
|
$ |
2,040 |
|
|
$ |
1,557 |
|
|
$ |
5,961 |
|
|
$ |
1,703 |
|
|
$ |
1,878 |
|
|
$ |
1,521 |
|
|
$ |
960 |
|
|
$ |
6,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Insurance In-Force |
|
$ |
120,400 |
|
|
$ |
117,100 |
|
|
$ |
115,200 |
|
|
|
|
|
|
$ |
114,400 |
|
|
$ |
112,400 |
|
|
$ |
110,500 |
|
|
$ |
109,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk In-Force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
30,001 |
|
|
$ |
29,026 |
|
|
$ |
28,415 |
|
|
|
|
|
|
$ |
28,112 |
|
|
$ |
27,507 |
|
|
$ |
26,880 |
|
|
$ |
26,405 |
|
|
|
|
|
Bulk(1) |
|
|
349 |
|
|
|
360 |
|
|
|
387 |
|
|
|
|
|
|
|
402 |
|
|
|
419 |
|
|
|
434 |
|
|
|
442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
|
30,350 |
|
|
|
29,386 |
|
|
|
28,802 |
|
|
|
|
|
|
|
28,514 |
|
|
|
27,926 |
|
|
|
27,314 |
|
|
|
26,847 |
|
|
|
|
|
Pool |
|
|
129 |
|
|
|
137 |
|
|
|
142 |
|
|
|
|
|
|
|
151 |
|
|
|
159 |
|
|
|
163 |
|
|
|
171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Risk In-Force |
|
$ |
30,479 |
|
|
$ |
29,523 |
|
|
$ |
28,944 |
|
|
|
|
|
|
$ |
28,665 |
|
|
$ |
28,085 |
|
|
$ |
27,477 |
|
|
$ |
27,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Risk In-Force That Is GSE Conforming |
|
|
97 |
% |
|
|
97 |
% |
|
|
97 |
% |
|
|
|
|
|
|
97 |
% |
|
|
97 |
% |
|
|
97 |
% |
|
|
97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis Expense Ratio(2) |
|
|
28 |
% |
|
|
26 |
% |
|
|
26 |
% |
|
|
27 |
% |
|
|
26 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted Expense Ratio(3) |
|
|
24 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
24 |
% |
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
Flow Persistency |
|
|
80 |
% |
|
|
79 |
% |
|
|
81 |
% |
|
|
|
|
|
|
83 |
% |
|
|
80 |
% |
|
|
83 |
% |
|
|
85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk To Capital Ratio(4) |
|
|
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) |
|
$ |
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 September 30, 2015, 87% of our bulk risk in-force was related to loans financed by lenders who participated in the mortgage programs sponsored by the Federal Home Loan Banks. |
(2) |
The ratio of an insurers general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.
|
(3) |
The ratio of an insurers 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 insurers risk in-force to 25 times the total of the insurers policyholders surplus plus the statutory contingency reserve, commonly known as the risk to
capital requirement. The current period risk to capital ratio is an estimate due to the timing of the filing of statutory statements and is prepared consistent with the presentation of the statutory financial statements in the combined annual
statement of the U.S. mortgage insurance business. |
34
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Loss MetricsU.S. Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Paid Claims |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct |
|
$ |
98 |
|
|
$ |
131 |
|
|
$ |
130 |
|
|
$ |
359 |
|
|
$ |
142 |
|
|
$ |
148 |
|
|
$ |
148 |
|
|
$ |
178 |
|
|
$ |
616 |
|
Assumed(1) |
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
|
|
12 |
|
|
|
3 |
|
|
|
4 |
|
|
|
6 |
|
|
|
6 |
|
|
|
19 |
|
Ceded |
|
|
|
|
|
|
(1 |
) |
|
|
(16 |
) |
|
|
(17 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(15 |
) |
|
|
(26 |
) |
Loss adjustment expenses |
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
10 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Flow |
|
|
104 |
|
|
|
137 |
|
|
|
123 |
|
|
|
364 |
|
|
|
145 |
|
|
|
153 |
|
|
|
154 |
|
|
|
174 |
|
|
|
626 |
|
Bulk |
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
5 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primary |
|
|
105 |
|
|
|
139 |
|
|
|
125 |
|
|
|
369 |
|
|
|
147 |
|
|
|
155 |
|
|
|
156 |
|
|
|
176 |
|
|
|
634 |
|
Pool |
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Paid Claims |
|
$ |
105 |
|
|
$ |
140 |
|
|
$ |
126 |
|
|
$ |
371 |
|
|
$ |
149 |
|
|
$ |
156 |
|
|
$ |
157 |
|
|
$ |
177 |
|
|
$ |
639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Paid Claim (in thousands) |
|
$ |
54.0 |
|
|
$ |
50.8 |
|
|
$ |
46.5 |
|
|
|
|
|
|
$ |
46.6 |
|
|
$ |
47.6 |
|
|
$ |
47.2 |
|
|
$ |
43.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Reserve Per Delinquency (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
$ |
29.4 |
|
|
$ |
30.6 |
|
|
$ |
31.0 |
|
|
|
|
|
|
$ |
30.2 |
|
|
$ |
30.7 |
|
|
$ |
30.0 |
|
|
$ |
30.3 |
|
|
|
|
|
Bulk loans with established reserve |
|
|
20.0 |
|
|
|
21.5 |
|
|
|
21.2 |
|
|
|
|
|
|
|
20.4 |
|
|
|
20.5 |
|
|
|
22.5 |
|
|
|
19.2 |
|
|
|
|
|
Bulk loans with no reserve(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow direct case |
|
$ |
870 |
|
|
$ |
909 |
|
|
$ |
992 |
|
|
|
|
|
|
$ |
1,065 |
|
|
$ |
1,122 |
|
|
$ |
1,083 |
|
|
$ |
1,172 |
|
|
|
|
|
Bulk direct case |
|
|
17 |
|
|
|
18 |
|
|
|
20 |
|
|
|
|
|
|
|
21 |
|
|
|
22 |
|
|
|
24 |
|
|
|
25 |
|
|
|
|
|
Assumed(1) |
|
|
9 |
|
|
|
12 |
|
|
|
15 |
|
|
|
|
|
|
|
21 |
|
|
|
21 |
|
|
|
24 |
|
|
|
29 |
|
|
|
|
|
All other(3) |
|
|
57 |
|
|
|
57 |
|
|
|
60 |
|
|
|
|
|
|
|
73 |
|
|
|
74 |
|
|
|
125 |
|
|
|
129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reserves |
|
$ |
953 |
|
|
$ |
996 |
|
|
$ |
1,087 |
|
|
|
|
|
|
$ |
1,180 |
|
|
$ |
1,239 |
|
|
$ |
1,256 |
|
|
$ |
1,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Reserves |
|
$ |
996 |
|
|
$ |
1,087 |
|
|
$ |
1,180 |
|
|
$ |
1,180 |
|
|
$ |
1,239 |
|
|
$ |
1,256 |
|
|
$ |
1,355 |
|
|
$ |
1,482 |
|
|
$ |
1,482 |
|
Paid claims |
|
|
(105 |
) |
|
|
(141 |
) |
|
|
(142 |
) |
|
|
(388 |
) |
|
|
(153 |
) |
|
|
(158 |
) |
|
|
(162 |
) |
|
|
(192 |
) |
|
|
(665 |
) |
Increase in reserves |
|
|
62 |
|
|
|
50 |
|
|
|
49 |
|
|
|
161 |
|
|
|
94 |
|
|
|
141 |
|
|
|
63 |
|
|
|
65 |
|
|
|
363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Reserves |
|
$ |
953 |
|
|
$ |
996 |
|
|
$ |
1,087 |
|
|
$ |
953 |
|
|
$ |
1,180 |
|
|
$ |
1,239 |
|
|
$ |
1,256 |
|
|
$ |
1,355 |
|
|
$ |
1,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Reinsurance Recoverable(4) |
|
$ |
6 |
|
|
$ |
7 |
|
|
$ |
24 |
|
|
$ |
24 |
|
|
$ |
25 |
|
|
$ |
27 |
|
|
$ |
31 |
|
|
$ |
44 |
|
|
$ |
44 |
|
Ceded paid claims |
|
|
|
|
|
|
(1 |
) |
|
|
(16 |
) |
|
|
(17 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(26 |
) |
Increase in recoverable |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
3 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Reinsurance Recoverable |
|
$ |
6 |
|
|
$ |
6 |
|
|
$ |
7 |
|
|
$ |
6 |
|
|
$ |
24 |
|
|
$ |
25 |
|
|
$ |
27 |
|
|
$ |
31 |
|
|
$ |
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Ratio(5) |
|
|
43 |
% |
|
|
33 |
% |
|
|
33 |
% |
|
|
36 |
% |
|
|
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) |
Assumed is comprised of reinsurance arrangements with state governmental housing finance agencies. |
(2) |
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. |
(3) |
Other includes loss adjustment expenses, pool and incurred but not reported reserves. |
(4) |
Reinsurance recoverable excludes ceded unearned premium recoveries and amounts for which cash proceeds have not yet been received. |
(5) |
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. |
35
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Delinquency MetricsU.S. Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Number of Primary Delinquencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow |
|
|
31,678 |
|
|
|
31,876 |
|
|
|
34,220 |
|
|
|
|
|
|
|
38,177 |
|
|
|
39,485 |
|
|
|
40,897 |
|
|
|
43,733 |
|
|
|
|
|
Bulk loans with an established reserve |
|
|
917 |
|
|
|
908 |
|
|
|
984 |
|
|
|
|
|
|
|
1,109 |
|
|
|
1,147 |
|
|
|
1,147 |
|
|
|
1,434 |
|
|
|
|
|
Bulk loans with no reserve(1) |
|
|
394 |
|
|
|
415 |
|
|
|
461 |
|
|
|
|
|
|
|
500 |
|
|
|
515 |
|
|
|
561 |
|
|
|
694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Number of Primary Delinquencies |
|
|
32,989 |
|
|
|
33,199 |
|
|
|
35,665 |
|
|
|
|
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Number of Primary Delinquencies |
|
|
33,199 |
|
|
|
35,665 |
|
|
|
39,786 |
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
|
|
51,459 |
|
|
|
51,459 |
|
New delinquencies |
|
|
10,192 |
|
|
|
9,061 |
|
|
|
9,554 |
|
|
|
28,807 |
|
|
|
10,826 |
|
|
|
11,574 |
|
|
|
10,568 |
|
|
|
12,100 |
|
|
|
45,068 |
|
Delinquency cures |
|
|
(8,484 |
) |
|
|
(8,800 |
) |
|
|
(10,988 |
) |
|
|
(28,272 |
) |
|
|
(9,030 |
) |
|
|
(9,790 |
) |
|
|
(10,545 |
) |
|
|
(13,678 |
) |
|
|
(43,043 |
) |
Paid claims |
|
|
(1,918 |
) |
|
|
(2,727 |
) |
|
|
(2,687 |
) |
|
|
(7,332 |
) |
|
|
(3,157 |
) |
|
|
(3,242 |
) |
|
|
(3,279 |
) |
|
|
(4,020 |
) |
|
|
(13,698 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Number of Primary Delinquencies |
|
|
32,989 |
|
|
|
33,199 |
|
|
|
35,665 |
|
|
|
32,989 |
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
|
|
39,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of Cures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported delinquent and cured-intraquarter |
|
|
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 |
|
|
4,630 |
|
|
|
4,260 |
|
|
|
6,112 |
|
|
|
|
|
|
|
5,340 |
|
|
|
5,202 |
|
|
|
5,335 |
|
|
|
7,252 |
|
|
|
|
|
4 - 11 payments |
|
|
1,487 |
|
|
|
2,250 |
|
|
|
1,912 |
|
|
|
|
|
|
|
1,613 |
|
|
|
1,772 |
|
|
|
2,253 |
|
|
|
2,391 |
|
|
|
|
|
12 payments or more |
|
|
562 |
|
|
|
632 |
|
|
|
693 |
|
|
|
|
|
|
|
643 |
|
|
|
723 |
|
|
|
964 |
|
|
|
894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
8,484 |
|
|
|
8,800 |
|
|
|
10,988 |
|
|
|
|
|
|
|
9,030 |
|
|
|
9,790 |
|
|
|
10,545 |
|
|
|
13,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Delinquencies by Missed Payment Status |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 payments or less |
|
|
10,226 |
|
|
|
9,432 |
|
|
|
9,271 |
|
|
|
|
|
|
|
11,318 |
|
|
|
11,478 |
|
|
|
11,228 |
|
|
|
11,351 |
|
|
|
|
|
4 - 11 payments |
|
|
7,376 |
|
|
|
7,824 |
|
|
|
9,086 |
|
|
|
|
|
|
|
9,684 |
|
|
|
9,610 |
|
|
|
9,913 |
|
|
|
11,463 |
|
|
|
|
|
12 payments or more |
|
|
15,387 |
|
|
|
15,943 |
|
|
|
17,308 |
|
|
|
|
|
|
|
18,784 |
|
|
|
20,059 |
|
|
|
21,464 |
|
|
|
23,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Delinquencies |
|
|
32,989 |
|
|
|
33,199 |
|
|
|
35,665 |
|
|
|
|
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 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 |
|
|
9,822 |
|
|
$ |
63 |
|
|
$ |
395 |
|
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 - 11 payments in default |
|
|
7,187 |
|
|
|
183 |
|
|
|
298 |
|
|
|
61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 payments or more in default |
|
|
14,669 |
|
|
|
624 |
|
|
|
724 |
|
|
|
86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
31,678 |
|
|
$ |
870 |
|
|
$ |
1,417 |
|
|
|
61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
36
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Portfolio Quality MetricsU.S. Mortgage Insurance Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
Primary Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary loans in-force |
|
|
647,126 |
|
|
|
636,640 |
|
|
|
631,591 |
|
|
|
630,852 |
|
|
|
624,850 |
|
|
|
620,415 |
|
|
|
618,442 |
|
Primary delinquent loans |
|
|
32,989 |
|
|
|
33,199 |
|
|
|
35,665 |
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
Primary delinquency rate |
|
|
5.10 |
% |
|
|
5.21 |
% |
|
|
5.65 |
% |
|
|
6.31 |
% |
|
|
6.59 |
% |
|
|
6.87 |
% |
|
|
7.42 |
% |
|
|
|
|
|
|
|
|
Flow loans in-force |
|
|
620,430 |
|
|
|
608,615 |
|
|
|
601,472 |
|
|
|
599,206 |
|
|
|
591,823 |
|
|
|
585,719 |
|
|
|
582,553 |
|
Flow delinquent loans |
|
|
31,678 |
|
|
|
31,876 |
|
|
|
34,220 |
|
|
|
38,177 |
|
|
|
39,485 |
|
|
|
40,897 |
|
|
|
43,733 |
|
Flow delinquency rate |
|
|
5.11 |
% |
|
|
5.24 |
% |
|
|
5.69 |
% |
|
|
6.37 |
% |
|
|
6.67 |
% |
|
|
6.98 |
% |
|
|
7.51 |
% |
|
|
|
|
|
|
|
|
Bulk loans in-force |
|
|
26,696 |
|
|
|
28,025 |
|
|
|
30,119 |
|
|
|
31,646 |
|
|
|
33,027 |
|
|
|
34,696 |
|
|
|
35,889 |
|
Bulk delinquent loans |
|
|
1,311 |
|
|
|
1,323 |
|
|
|
1,445 |
|
|
|
1,609 |
|
|
|
1,662 |
|
|
|
1,708 |
|
|
|
2,128 |
|
Bulk delinquency rate |
|
|
4.91 |
% |
|
|
4.72 |
% |
|
|
4.80 |
% |
|
|
5.08 |
% |
|
|
5.03 |
% |
|
|
4.92 |
% |
|
|
5.93 |
% |
|
|
|
|
|
|
|
|
A minus and sub-prime loans in-force |
|
|
29,745 |
|
|
|
31,051 |
|
|
|
33,805 |
|
|
|
33,529 |
|
|
|
34,825 |
|
|
|
36,219 |
|
|
|
37,714 |
|
A minus and sub-prime delinquent loans |
|
|
6,642 |
|
|
|
6,530 |
|
|
|
7,019 |
|
|
|
7,851 |
|
|
|
8,017 |
|
|
|
8,238 |
|
|
|
8,789 |
|
A minus and sub-prime delinquency rate |
|
|
22.33 |
% |
|
|
21.03 |
% |
|
|
20.76 |
% |
|
|
23.42 |
% |
|
|
23.02 |
% |
|
|
22.74 |
% |
|
|
23.30 |
% |
|
|
|
|
|
|
|
|
Pool Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pool loans in-force |
|
|
7,284 |
|
|
|
7,709 |
|
|
|
7,979 |
|
|
|
8,282 |
|
|
|
10,125 |
|
|
|
10,336 |
|
|
|
10,710 |
|
Pool delinquent loans |
|
|
426 |
|
|
|
447 |
|
|
|
468 |
|
|
|
521 |
|
|
|
549 |
|
|
|
546 |
|
|
|
575 |
|
Pool delinquency rate |
|
|
5.85 |
% |
|
|
5.80 |
% |
|
|
5.87 |
% |
|
|
6.29 |
% |
|
|
5.42 |
% |
|
|
5.28 |
% |
|
|
5.37 |
% |
|
|
|
|
|
|
|
|
Primary Risk In-Force by Credit Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over 735 |
|
|
52 |
% |
|
|
52 |
% |
|
|
52 |
% |
|
|
51 |
% |
|
|
51 |
% |
|
|
51 |
% |
|
|
50 |
% |
680-735 |
|
|
31 |
% |
|
|
31 |
% |
|
|
31 |
% |
|
|
31 |
% |
|
|
30 |
% |
|
|
30 |
% |
|
|
30 |
% |
660-679(1) |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
8 |
% |
620-659 |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
8 |
% |
|
|
8 |
% |
|
|
8 |
% |
|
|
8 |
% |
< 620 |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
(1) |
Loans with unknown FICO scores are included in the 660-679 category. |
37
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Portfolio Quality MetricsU.S. Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 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 |
|
|
6.07 |
% |
|
|
12.1 |
% |
|
$ |
4,338 |
|
|
|
3.6 |
% |
|
$ |
978 |
|
|
|
3.2 |
% |
|
|
14.84 |
% |
2005 |
|
|
5.66 |
% |
|
|
11.8 |
|
|
|
3,793 |
|
|
|
3.2 |
|
|
|
1,026 |
|
|
|
3.4 |
|
|
|
13.91 |
% |
2006 |
|
|
5.87 |
% |
|
|
17.2 |
|
|
|
6,262 |
|
|
|
5.2 |
|
|
|
1,606 |
|
|
|
5.3 |
|
|
|
13.22 |
% |
2007 |
|
|
5.78 |
% |
|
|
37.1 |
|
|
|
15,552 |
|
|
|
12.9 |
|
|
|
3,913 |
|
|
|
12.9 |
|
|
|
12.39 |
% |
2008 |
|
|
5.32 |
% |
|
|
17.8 |
|
|
|
13,386 |
|
|
|
11.1 |
|
|
|
3,392 |
|
|
|
11.2 |
|
|
|
6.98 |
% |
2009 |
|
|
4.95 |
% |
|
|
0.6 |
|
|
|
1,968 |
|
|
|
1.6 |
|
|
|
457 |
|
|
|
1.5 |
|
|
|
2.03 |
% |
2010 |
|
|
4.69 |
% |
|
|
0.6 |
|
|
|
2,500 |
|
|
|
2.1 |
|
|
|
621 |
|
|
|
2.1 |
|
|
|
1.64 |
% |
2011 |
|
|
4.52 |
% |
|
|
0.6 |
|
|
|
3,507 |
|
|
|
2.9 |
|
|
|
893 |
|
|
|
2.9 |
|
|
|
1.30 |
% |
2012 |
|
|
3.82 |
% |
|
|
0.6 |
|
|
|
8,969 |
|
|
|
7.4 |
|
|
|
2,313 |
|
|
|
7.6 |
|
|
|
0.56 |
% |
2013 |
|
|
3.99 |
% |
|
|
0.8 |
|
|
|
15,643 |
|
|
|
13.0 |
|
|
|
3,982 |
|
|
|
13.1 |
|
|
|
0.50 |
% |
2014 |
|
|
4.39 |
% |
|
|
0.7 |
|
|
|
21,065 |
|
|
|
17.5 |
|
|
|
5,298 |
|
|
|
17.5 |
|
|
|
0.38 |
% |
2015 |
|
|
4.10 |
% |
|
|
0.1 |
|
|
|
23,443 |
|
|
|
19.5 |
|
|
|
5,871 |
|
|
|
19.3 |
|
|
|
0.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
4.82 |
% |
|
|
100.0 |
% |
|
$ |
120,426 |
|
|
|
100.0 |
% |
|
$ |
30,350 |
|
|
|
100.0 |
% |
|
|
5.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
September 30, 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) |
|
$ |
30,350 |
|
|
|
5.10 |
% |
|
$ |
29,386 |
|
|
|
5.21 |
% |
|
$ |
27,926 |
|
|
|
6.59 |
% |
|
|
|
|
Top 10 lenders |
|
|
11,774 |
|
|
|
6.68 |
% |
|
|
11,926 |
|
|
|
6.61 |
% |
|
|
12,337 |
|
|
|
7.79 |
% |
|
|
|
|
Top 20 lenders |
|
|
14,233 |
|
|
|
5.93 |
% |
|
|
14,065 |
|
|
|
6.12 |
% |
|
|
14,309 |
|
|
|
7.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Loan-to-value ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95.01% and above |
|
$ |
6,429 |
|
|
|
8.15 |
% |
|
$ |
6,540 |
|
|
|
7.87 |
% |
|
$ |
6,912 |
|
|
|
9.02 |
% |
|
|
|
|
90.01% to 95.00% |
|
|
13,841 |
|
|
|
3.66 |
% |
|
|
13,006 |
|
|
|
3.86 |
% |
|
|
11,412 |
|
|
|
5.36 |
% |
|
|
|
|
80.01% to 90.00% |
|
|
9,761 |
|
|
|
4.85 |
% |
|
|
9,513 |
|
|
|
5.07 |
% |
|
|
9,230 |
|
|
|
6.40 |
% |
|
|
|
|
80.00% and below |
|
|
319 |
|
|
|
3.44 |
% |
|
|
327 |
|
|
|
3.33 |
% |
|
|
372 |
|
|
|
3.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
30,350 |
|
|
|
5.10 |
% |
|
$ |
29,386 |
|
|
|
5.21 |
% |
|
$ |
27,926 |
|
|
|
6.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan grade |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime |
|
$ |
29,233 |
|
|
|
4.27 |
% |
|
$ |
28,221 |
|
|
|
4.40 |
% |
|
$ |
26,627 |
|
|
|
5.62 |
% |
|
|
|
|
A minus and sub-prime |
|
|
1,117 |
|
|
|
22.33 |
% |
|
|
1,165 |
|
|
|
21.03 |
% |
|
|
1,299 |
|
|
|
23.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
30,350 |
|
|
|
5.10 |
% |
|
$ |
29,386 |
|
|
|
5.21 |
% |
|
$ |
27,926 |
|
|
|
6.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Average Annual Mortgage Interest Rate. |
(2) |
Total reserves were $953 million as of September 30, 2015. |
38
U.S. Life Insurance
Division
39
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income (Loss)U.S. Life Insurance Division
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
784 |
|
|
$ |
769 |
|
|
$ |
778 |
|
|
$ |
2,331 |
|
|
$ |
827 |
|
|
$ |
821 |
|
|
$ |
762 |
|
|
$ |
759 |
|
|
$ |
3,169 |
|
Net investment income |
|
|
680 |
|
|
|
677 |
|
|
|
671 |
|
|
|
2,028 |
|
|
|
676 |
|
|
|
658 |
|
|
|
671 |
|
|
|
660 |
|
|
|
2,665 |
|
Net investment gains (losses) |
|
|
(16 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
(27 |
) |
|
|
12 |
|
|
|
1 |
|
|
|
25 |
|
|
|
3 |
|
|
|
41 |
|
Insurance and investment product fees and other |
|
|
177 |
|
|
|
182 |
|
|
|
180 |
|
|
|
539 |
|
|
|
180 |
|
|
|
186 |
|
|
|
175 |
|
|
|
171 |
|
|
|
712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,625 |
|
|
|
1,621 |
|
|
|
1,625 |
|
|
|
4,871 |
|
|
|
1,695 |
|
|
|
1,666 |
|
|
|
1,633 |
|
|
|
1,593 |
|
|
|
6,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
1,155 |
|
|
|
1,122 |
|
|
|
1,091 |
|
|
|
3,368 |
|
|
|
1,981 |
|
|
|
1,722 |
|
|
|
1,087 |
|
|
|
1,030 |
|
|
|
5,820 |
|
Interest credited |
|
|
148 |
|
|
|
150 |
|
|
|
150 |
|
|
|
448 |
|
|
|
154 |
|
|
|
155 |
|
|
|
155 |
|
|
|
154 |
|
|
|
618 |
|
Acquisition and operating expenses, net of deferrals |
|
|
176 |
|
|
|
167 |
|
|
|
163 |
|
|
|
506 |
|
|
|
168 |
|
|
|
173 |
|
|
|
156 |
|
|
|
161 |
|
|
|
658 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
530 |
|
|
|
75 |
|
|
|
73 |
|
|
|
678 |
|
|
|
98 |
|
|
|
91 |
|
|
|
81 |
|
|
|
75 |
|
|
|
345 |
|
Goodwill impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
299 |
|
|
|
550 |
|
|
|
|
|
|
|
|
|
|
|
849 |
|
Interest expense |
|
|
22 |
|
|
|
22 |
|
|
|
25 |
|
|
|
69 |
|
|
|
23 |
|
|
|
22 |
|
|
|
21 |
|
|
|
21 |
|
|
|
87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
2,031 |
|
|
|
1,536 |
|
|
|
1,502 |
|
|
|
5,069 |
|
|
|
2,723 |
|
|
|
2,713 |
|
|
|
1,500 |
|
|
|
1,441 |
|
|
|
8,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(406 |
) |
|
|
85 |
|
|
|
123 |
|
|
|
(198 |
) |
|
|
(1,028 |
) |
|
|
(1,047 |
) |
|
|
133 |
|
|
|
152 |
|
|
|
(1,790 |
) |
Provision (benefit) for income taxes |
|
|
(144 |
) |
|
|
31 |
|
|
|
43 |
|
|
|
(70 |
) |
|
|
(278 |
) |
|
|
(211 |
) |
|
|
47 |
|
|
|
57 |
|
|
|
(385 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(262 |
) |
|
|
54 |
|
|
|
80 |
|
|
|
(128 |
) |
|
|
(750 |
) |
|
|
(836 |
) |
|
|
86 |
|
|
|
95 |
|
|
|
(1,405 |
) |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
6 |
|
|
|
2 |
|
|
|
1 |
|
|
|
9 |
|
|
|
(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 |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
40 |
|
|
$ |
57 |
|
|
$ |
81 |
|
|
$ |
178 |
|
|
$ |
(482 |
) |
|
$ |
(322 |
) |
|
$ |
69 |
|
|
$ |
94 |
|
|
$ |
(641 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
34.7 |
% |
|
|
35.8 |
% |
|
|
35.6 |
% |
|
|
37.3 |
% |
|
|
34.7 |
% |
40
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income (Loss)U.S. Life Insurance Division
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Life Insurance Segment |
|
|
|
|
Three months ended September 30, 2015 |
|
Long-Term Care Insurance |
|
|
Life Insurance |
|
|
Fixed Annuities |
|
|
Total U.S. Life Insurance Segment |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
618 |
|
|
$ |
162 |
|
|
$ |
4 |
|
|
$ |
784 |
|
|
$ |
784 |
|
Net investment income |
|
|
327 |
|
|
|
126 |
|
|
|
227 |
|
|
|
680 |
|
|
|
680 |
|
Net investment gains (losses) |
|
|
4 |
|
|
|
(8 |
) |
|
|
(12 |
) |
|
|
(16 |
) |
|
|
(16 |
) |
Insurance and investment product fees and other |
|
|
|
|
|
|
175 |
|
|
|
2 |
|
|
|
177 |
|
|
|
177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
949 |
|
|
|
455 |
|
|
|
221 |
|
|
|
1,625 |
|
|
|
1,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
825 |
|
|
|
248 |
|
|
|
82 |
|
|
|
1,155 |
|
|
|
1,155 |
|
Interest credited |
|
|
|
|
|
|
66 |
|
|
|
82 |
|
|
|
148 |
|
|
|
148 |
|
Acquisition and operating expenses, net of deferrals |
|
|
112 |
|
|
|
48 |
|
|
|
16 |
|
|
|
176 |
|
|
|
176 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
24 |
|
|
|
487 |
|
|
|
19 |
|
|
|
530 |
|
|
|
530 |
|
Interest expense |
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
22 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
961 |
|
|
|
871 |
|
|
|
199 |
|
|
|
2,031 |
|
|
|
2,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(12 |
) |
|
|
(416 |
) |
|
|
22 |
|
|
|
(406 |
) |
|
|
(406 |
) |
Provision (benefit) for income taxes |
|
|
(5 |
) |
|
|
(147 |
) |
|
|
8 |
|
|
|
(144 |
) |
|
|
(144 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(7 |
) |
|
|
(269 |
) |
|
|
14 |
|
|
|
(262 |
) |
|
|
(262 |
) |
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
(3 |
) |
|
|
4 |
|
|
|
5 |
|
|
|
6 |
|
|
|
6 |
|
(Gains) losses from life block transactions, net |
|
|
|
|
|
|
296 |
|
|
|
|
|
|
|
296 |
|
|
|
296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
(10 |
) |
|
$ |
31 |
|
|
$ |
19 |
|
|
$ |
40 |
|
|
$ |
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
|
|
|
U.S. Life Insurance Segment |
|
|
|
|
Three months ended September 30, 2014 |
|
Long-Term Care Insurance |
|
|
Life Insurance |
|
|
Fixed Annuities |
|
|
Total U.S. Life Insurance Segment |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
587 |
|
|
$ |
193 |
|
|
$ |
41 |
|
|
$ |
821 |
|
|
$ |
821 |
|
Net investment income |
|
|
293 |
|
|
|
123 |
|
|
|
242 |
|
|
|
658 |
|
|
|
658 |
|
Net investment gains (losses) |
|
|
(1 |
) |
|
|
10 |
|
|
|
(8 |
) |
|
|
1 |
|
|
|
1 |
|
Insurance and investment product fees and other |
|
|
|
|
|
|
184 |
|
|
|
2 |
|
|
|
186 |
|
|
|
186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
879 |
|
|
|
510 |
|
|
|
277 |
|
|
|
1,666 |
|
|
|
1,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
1,313 |
|
|
|
293 |
|
|
|
116 |
|
|
|
1,722 |
|
|
|
1,722 |
|
Interest credited |
|
|
|
|
|
|
67 |
|
|
|
88 |
|
|
|
155 |
|
|
|
155 |
|
Acquisition and operating expenses, net of deferrals |
|
|
103 |
|
|
|
52 |
|
|
|
18 |
|
|
|
173 |
|
|
|
173 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
25 |
|
|
|
46 |
|
|
|
20 |
|
|
|
91 |
|
|
|
91 |
|
Goodwill impairment |
|
|
200 |
|
|
|
350 |
|
|
|
|
|
|
|
550 |
|
|
|
550 |
|
Interest expense |
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
22 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
1,641 |
|
|
|
830 |
|
|
|
242 |
|
|
|
2,713 |
|
|
|
2,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(762 |
) |
|
|
(320 |
) |
|
|
35 |
|
|
|
(1,047 |
) |
|
|
(1,047 |
) |
Provision (benefit) for income taxes |
|
|
(234 |
) |
|
|
11 |
|
|
|
12 |
|
|
|
(211 |
) |
|
|
(211 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(528 |
) |
|
|
(331 |
) |
|
|
23 |
|
|
|
(836 |
) |
|
|
(836 |
) |
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
|
|
|
|
(6 |
) |
|
|
3 |
|
|
|
(3 |
) |
|
|
(3 |
) |
Goodwill impairment, net |
|
|
167 |
|
|
|
350 |
|
|
|
|
|
|
|
517 |
|
|
|
517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
(361 |
) |
|
$ |
13 |
|
|
$ |
26 |
|
|
$ |
(322 |
) |
|
$ |
(322 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
35.7 |
% |
|
|
35.2 |
% |
|
|
34.8 |
% |
|
|
35.8 |
% |
|
|
35.8 |
% |
41
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income (Loss)U.S. Life Insurance Division
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Life Insurance Segment |
|
|
|
|
Nine months ended September 30, 2015 |
|
Long-Term Care Insurance |
|
|
Life Insurance |
|
|
Fixed Annuities |
|
|
Total U.S. Life Insurance Segment |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
1,804 |
|
|
$ |
510 |
|
|
$ |
17 |
|
|
$ |
2,331 |
|
|
$ |
2,331 |
|
Net investment income |
|
|
960 |
|
|
|
380 |
|
|
|
688 |
|
|
|
2,028 |
|
|
|
2,028 |
|
Net investment gains (losses) |
|
|
4 |
|
|
|
(2 |
) |
|
|
(29 |
) |
|
|
(27 |
) |
|
|
(27 |
) |
Insurance and investment product fees and other |
|
|
1 |
|
|
|
531 |
|
|
|
7 |
|
|
|
539 |
|
|
|
539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
2,769 |
|
|
|
1,419 |
|
|
|
683 |
|
|
|
4,871 |
|
|
|
4,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
2,371 |
|
|
|
764 |
|
|
|
233 |
|
|
|
3,368 |
|
|
|
3,368 |
|
Interest credited |
|
|
|
|
|
|
200 |
|
|
|
248 |
|
|
|
448 |
|
|
|
448 |
|
Acquisition and operating expenses, net of deferrals |
|
|
305 |
|
|
|
151 |
|
|
|
50 |
|
|
|
506 |
|
|
|
506 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
74 |
|
|
|
550 |
|
|
|
54 |
|
|
|
678 |
|
|
|
678 |
|
Interest expense |
|
|
|
|
|
|
69 |
|
|
|
|
|
|
|
69 |
|
|
|
69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
2,750 |
|
|
|
1,734 |
|
|
|
585 |
|
|
|
5,069 |
|
|
|
5,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
19 |
|
|
|
(315 |
) |
|
|
98 |
|
|
|
(198 |
) |
|
|
(198 |
) |
Provision (benefit) for income taxes |
|
|
6 |
|
|
|
(111 |
) |
|
|
35 |
|
|
|
(70 |
) |
|
|
(70 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
13 |
|
|
|
(204 |
) |
|
|
63 |
|
|
|
(128 |
) |
|
|
(128 |
) |
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
(3 |
) |
|
|
|
|
|
|
12 |
|
|
|
9 |
|
|
|
9 |
|
(Gains) losses from life block transactions, net |
|
|
|
|
|
|
296 |
|
|
|
|
|
|
|
296 |
|
|
|
296 |
|
Expenses related to restructuring, net |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME |
|
$ |
10 |
|
|
$ |
93 |
|
|
$ |
75 |
|
|
$ |
178 |
|
|
$ |
178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
|
|
|
U.S. Life Insurance Segment |
|
|
|
|
Nine months ended September 30, 2014 |
|
Long-Term Care Insurance |
|
|
Life Insurance |
|
|
Fixed Annuities |
|
|
Total U.S. Life Insurance Segment |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
1,729 |
|
|
$ |
547 |
|
|
$ |
66 |
|
|
$ |
2,342 |
|
|
$ |
2,342 |
|
Net investment income |
|
|
875 |
|
|
|
388 |
|
|
|
726 |
|
|
|
1,989 |
|
|
|
1,989 |
|
Net investment gains (losses) |
|
|
2 |
|
|
|
34 |
|
|
|
(7 |
) |
|
|
29 |
|
|
|
29 |
|
Insurance and investment product fees and other |
|
|
1 |
|
|
|
525 |
|
|
|
6 |
|
|
|
532 |
|
|
|
532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
2,607 |
|
|
|
1,494 |
|
|
|
791 |
|
|
|
4,892 |
|
|
|
4,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
2,712 |
|
|
|
831 |
|
|
|
296 |
|
|
|
3,839 |
|
|
|
3,839 |
|
Interest credited |
|
|
|
|
|
|
199 |
|
|
|
265 |
|
|
|
464 |
|
|
|
464 |
|
Acquisition and operating expenses, net of deferrals |
|
|
293 |
|
|
|
147 |
|
|
|
50 |
|
|
|
490 |
|
|
|
490 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
78 |
|
|
|
104 |
|
|
|
65 |
|
|
|
247 |
|
|
|
247 |
|
Goodwill impairment |
|
|
200 |
|
|
|
350 |
|
|
|
|
|
|
|
550 |
|
|
|
550 |
|
Interest expense |
|
|
|
|
|
|
64 |
|
|
|
|
|
|
|
64 |
|
|
|
64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
3,283 |
|
|
|
1,695 |
|
|
|
676 |
|
|
|
5,654 |
|
|
|
5,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(676 |
) |
|
|
(201 |
) |
|
|
115 |
|
|
|
(762 |
) |
|
|
(762 |
) |
Provision (benefit) for income taxes |
|
|
(202 |
) |
|
|
54 |
|
|
|
41 |
|
|
|
(107 |
) |
|
|
(107 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(474 |
) |
|
|
(255 |
) |
|
|
74 |
|
|
|
(655 |
) |
|
|
(655 |
) |
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
(2 |
) |
|
|
(22 |
) |
|
|
3 |
|
|
|
(21 |
) |
|
|
(21 |
) |
Goodwill impairment, net |
|
|
167 |
|
|
|
350 |
|
|
|
|
|
|
|
517 |
|
|
|
517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
(309 |
) |
|
$ |
73 |
|
|
$ |
77 |
|
|
$ |
(159 |
) |
|
$ |
(159 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
35.5 |
% |
|
|
36.5 |
% |
|
|
35.5 |
% |
|
|
34.9 |
% |
|
|
34.9 |
% |
42
U.S. Life Insurance
Segment
43
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net
Operating Income (Loss) and SalesU.S. Life Insurance SegmentLong-Term Care Insurance
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
618 |
|
|
$ |
597 |
|
|
$ |
589 |
|
|
$ |
1,804 |
|
|
$ |
607 |
|
|
$ |
587 |
|
|
$ |
577 |
|
|
$ |
565 |
|
|
$ |
2,336 |
|
Net investment income |
|
|
327 |
|
|
|
320 |
|
|
|
313 |
|
|
|
960 |
|
|
|
303 |
|
|
|
293 |
|
|
|
292 |
|
|
|
290 |
|
|
|
1,178 |
|
Net investment gains (losses) |
|
|
4 |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
4 |
|
|
|
6 |
|
|
|
(1 |
) |
|
|
3 |
|
|
|
|
|
|
|
8 |
|
Insurance and investment product fees and other |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
949 |
|
|
|
915 |
|
|
|
905 |
|
|
|
2,769 |
|
|
|
916 |
|
|
|
879 |
|
|
|
872 |
|
|
|
856 |
|
|
|
3,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
825 |
|
|
|
780 |
|
|
|
766 |
|
|
|
2,371 |
|
|
|
1,545 |
|
|
|
1,313 |
|
|
|
735 |
|
|
|
664 |
|
|
|
4,257 |
|
Interest credited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and operating expenses, net of deferrals |
|
|
112 |
|
|
|
98 |
|
|
|
95 |
|
|
|
305 |
|
|
|
106 |
|
|
|
103 |
|
|
|
97 |
|
|
|
93 |
|
|
|
399 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
24 |
|
|
|
24 |
|
|
|
26 |
|
|
|
74 |
|
|
|
34 |
|
|
|
25 |
|
|
|
27 |
|
|
|
26 |
|
|
|
112 |
|
Goodwill impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
154 |
|
|
|
200 |
|
|
|
|
|
|
|
|
|
|
|
354 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
961 |
|
|
|
902 |
|
|
|
887 |
|
|
|
2,750 |
|
|
|
1,839 |
|
|
|
1,641 |
|
|
|
859 |
|
|
|
783 |
|
|
|
5,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(12 |
) |
|
|
13 |
|
|
|
18 |
|
|
|
19 |
|
|
|
(923 |
) |
|
|
(762 |
) |
|
|
13 |
|
|
|
73 |
|
|
|
(1,599 |
) |
Provision (benefit) for income taxes |
|
|
(5 |
) |
|
|
5 |
|
|
|
6 |
|
|
|
6 |
|
|
|
(291 |
) |
|
|
(234 |
) |
|
|
5 |
|
|
|
27 |
|
|
|
(493 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(7 |
) |
|
|
8 |
|
|
|
12 |
|
|
|
13 |
|
|
|
(632 |
) |
|
|
(528 |
) |
|
|
8 |
|
|
|
46 |
|
|
|
(1,106 |
) |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
(3 |
) |
|
|
2 |
|
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(5 |
) |
Goodwill impairment, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
129 |
|
|
|
167 |
|
|
|
|
|
|
|
|
|
|
|
296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
(10 |
) |
|
$ |
10 |
|
|
$ |
10 |
|
|
$ |
10 |
|
|
$ |
(506 |
) |
|
$ |
(361 |
) |
|
$ |
6 |
|
|
$ |
46 |
|
|
$ |
(815 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
34.6 |
% |
|
|
35.7 |
% |
|
|
37.1 |
% |
|
|
37.0 |
% |
|
|
34.9 |
% |
|
|
|
|
|
|
|
|
|
|
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individual Long-Term Care Insurance |
|
$ |
7 |
|
|
$ |
8 |
|
|
$ |
10 |
|
|
$ |
25 |
|
|
$ |
17 |
|
|
$ |
28 |
|
|
$ |
24 |
|
|
$ |
21 |
|
|
$ |
90 |
|
Group Long-Term Care Insurance |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
6 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sales |
|
$ |
8 |
|
|
$ |
9 |
|
|
$ |
11 |
|
|
$ |
28 |
|
|
$ |
23 |
|
|
$ |
29 |
|
|
$ |
26 |
|
|
$ |
22 |
|
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Ratio(1) |
|
|
76.4 |
% |
|
|
72.6 |
% |
|
|
72.4 |
% |
|
|
73.8 |
% |
|
|
200.1 |
% |
|
|
173.0 |
% |
|
|
73.2 |
% |
|
|
63.3 |
% |
|
|
128.8 |
% |
Gross Benefits Ratio(2) |
|
|
133.5 |
% |
|
|
130.5 |
% |
|
|
130.2 |
% |
|
|
131.4 |
% |
|
|
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. |
44
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income and SalesU.S. Life Insurance SegmentLife Insurance
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
162 |
|
|
$ |
169 |
|
|
$ |
179 |
|
|
$ |
510 |
|
|
$ |
175 |
|
|
$ |
193 |
|
|
$ |
171 |
|
|
$ |
183 |
|
|
$ |
722 |
|
Net investment income |
|
|
126 |
|
|
|
127 |
|
|
|
127 |
|
|
|
380 |
|
|
|
133 |
|
|
|
123 |
|
|
|
137 |
|
|
|
128 |
|
|
|
521 |
|
Net investment gains (losses) |
|
|
(8 |
) |
|
|
3 |
|
|
|
3 |
|
|
|
(2 |
) |
|
|
|
|
|
|
10 |
|
|
|
23 |
|
|
|
1 |
|
|
|
34 |
|
Insurance and investment product fees and other |
|
|
175 |
|
|
|
178 |
|
|
|
178 |
|
|
|
531 |
|
|
|
179 |
|
|
|
184 |
|
|
|
173 |
|
|
|
168 |
|
|
|
704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
455 |
|
|
|
477 |
|
|
|
487 |
|
|
|
1,419 |
|
|
|
487 |
|
|
|
510 |
|
|
|
504 |
|
|
|
480 |
|
|
|
1,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
248 |
|
|
|
266 |
|
|
|
250 |
|
|
|
764 |
|
|
|
315 |
|
|
|
293 |
|
|
|
257 |
|
|
|
281 |
|
|
|
1,146 |
|
Interest credited |
|
|
66 |
|
|
|
68 |
|
|
|
66 |
|
|
|
200 |
|
|
|
67 |
|
|
|
67 |
|
|
|
66 |
|
|
|
66 |
|
|
|
266 |
|
Acquisition and operating expenses, net of deferrals |
|
|
48 |
|
|
|
52 |
|
|
|
51 |
|
|
|
151 |
|
|
|
45 |
|
|
|
52 |
|
|
|
45 |
|
|
|
50 |
|
|
|
192 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
487 |
|
|
|
33 |
|
|
|
30 |
|
|
|
550 |
|
|
|
36 |
|
|
|
46 |
|
|
|
32 |
|
|
|
26 |
|
|
|
140 |
|
Goodwill impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
145 |
|
|
|
350 |
|
|
|
|
|
|
|
|
|
|
|
495 |
|
Interest expense |
|
|
22 |
|
|
|
22 |
|
|
|
25 |
|
|
|
69 |
|
|
|
23 |
|
|
|
22 |
|
|
|
21 |
|
|
|
21 |
|
|
|
87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
871 |
|
|
|
441 |
|
|
|
422 |
|
|
|
1,734 |
|
|
|
631 |
|
|
|
830 |
|
|
|
421 |
|
|
|
444 |
|
|
|
2,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(416 |
) |
|
|
36 |
|
|
|
65 |
|
|
|
(315 |
) |
|
|
(144 |
) |
|
|
(320 |
) |
|
|
83 |
|
|
|
36 |
|
|
|
(345 |
) |
Provision (benefit) for income taxes |
|
|
(147 |
) |
|
|
13 |
|
|
|
23 |
|
|
|
(111 |
) |
|
|
|
|
|
|
11 |
|
|
|
29 |
|
|
|
14 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(269 |
) |
|
|
23 |
|
|
|
42 |
|
|
|
(204 |
) |
|
|
(144 |
) |
|
|
(331 |
) |
|
|
54 |
|
|
|
22 |
|
|
|
(399 |
) |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
4 |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
(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 |
|
$ |
31 |
|
|
$ |
22 |
|
|
$ |
40 |
|
|
$ |
93 |
|
|
$ |
1 |
|
|
$ |
13 |
|
|
$ |
39 |
|
|
$ |
21 |
|
|
$ |
74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
NM |
(1) |
|
|
35.2 |
% |
|
|
35.4 |
% |
|
|
39.3 |
% |
|
|
36.2 |
% |
|
|
|
|
|
|
|
|
|
|
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Life |
|
$ |
7 |
|
|
$ |
9 |
|
|
$ |
9 |
|
|
$ |
25 |
|
|
$ |
11 |
|
|
$ |
13 |
|
|
$ |
14 |
|
|
$ |
13 |
|
|
$ |
51 |
|
Universal Life |
|
|
2 |
|
|
|
4 |
|
|
|
4 |
|
|
|
10 |
|
|
|
7 |
|
|
|
11 |
|
|
|
7 |
|
|
|
6 |
|
|
|
31 |
|
Linked-Benefits |
|
|
3 |
|
|
|
2 |
|
|
|
4 |
|
|
|
9 |
|
|
|
5 |
|
|
|
4 |
|
|
|
5 |
|
|
|
2 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sales |
|
$ |
12 |
|
|
$ |
15 |
|
|
$ |
17 |
|
|
$ |
44 |
|
|
$ |
23 |
|
|
$ |
28 |
|
|
$ |
26 |
|
|
$ |
21 |
|
|
$ |
98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
NM is defined as not meaningful for percentages greater than 200%. |
45
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income and SalesU.S. Life Insurance SegmentFixed Annuities
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
4 |
|
|
$ |
3 |
|
|
$ |
10 |
|
|
$ |
17 |
|
|
$ |
45 |
|
|
$ |
41 |
|
|
$ |
14 |
|
|
$ |
11 |
|
|
$ |
111 |
|
Net investment income |
|
|
227 |
|
|
|
230 |
|
|
|
231 |
|
|
|
688 |
|
|
|
240 |
|
|
|
242 |
|
|
|
242 |
|
|
|
242 |
|
|
|
966 |
|
Net investment gains (losses) |
|
|
(12 |
) |
|
|
(7 |
) |
|
|
(10 |
) |
|
|
(29 |
) |
|
|
6 |
|
|
|
(8 |
) |
|
|
(1 |
) |
|
|
2 |
|
|
|
(1 |
) |
Insurance and investment product fees and other |
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
|
7 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
221 |
|
|
|
229 |
|
|
|
233 |
|
|
|
683 |
|
|
|
292 |
|
|
|
277 |
|
|
|
257 |
|
|
|
257 |
|
|
|
1,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
82 |
|
|
|
76 |
|
|
|
75 |
|
|
|
233 |
|
|
|
121 |
|
|
|
116 |
|
|
|
95 |
|
|
|
85 |
|
|
|
417 |
|
Interest credited |
|
|
82 |
|
|
|
82 |
|
|
|
84 |
|
|
|
248 |
|
|
|
87 |
|
|
|
88 |
|
|
|
89 |
|
|
|
88 |
|
|
|
352 |
|
Acquisition and operating expenses, net of deferrals |
|
|
16 |
|
|
|
17 |
|
|
|
17 |
|
|
|
50 |
|
|
|
17 |
|
|
|
18 |
|
|
|
14 |
|
|
|
18 |
|
|
|
67 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
19 |
|
|
|
18 |
|
|
|
17 |
|
|
|
54 |
|
|
|
28 |
|
|
|
20 |
|
|
|
22 |
|
|
|
23 |
|
|
|
93 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
199 |
|
|
|
193 |
|
|
|
193 |
|
|
|
585 |
|
|
|
253 |
|
|
|
242 |
|
|
|
220 |
|
|
|
214 |
|
|
|
929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
22 |
|
|
|
36 |
|
|
|
40 |
|
|
|
98 |
|
|
|
39 |
|
|
|
35 |
|
|
|
37 |
|
|
|
43 |
|
|
|
154 |
|
Provision for income taxes |
|
|
8 |
|
|
|
13 |
|
|
|
14 |
|
|
|
35 |
|
|
|
13 |
|
|
|
12 |
|
|
|
13 |
|
|
|
16 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
14 |
|
|
|
23 |
|
|
|
26 |
|
|
|
63 |
|
|
|
26 |
|
|
|
23 |
|
|
|
24 |
|
|
|
27 |
|
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
5 |
|
|
|
2 |
|
|
|
5 |
|
|
|
12 |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME |
|
$ |
19 |
|
|
$ |
25 |
|
|
$ |
31 |
|
|
$ |
75 |
|
|
$ |
23 |
|
|
$ |
26 |
|
|
$ |
24 |
|
|
$ |
27 |
|
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
33.3 |
% |
|
|
34.8 |
% |
|
|
35.5 |
% |
|
|
36.2 |
% |
|
|
35.0 |
% |
|
|
|
|
|
|
|
|
|
|
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single Premium Deferred Annuities |
|
$ |
248 |
|
|
$ |
211 |
|
|
$ |
306 |
|
|
$ |
765 |
|
|
$ |
439 |
|
|
$ |
322 |
|
|
$ |
400 |
|
|
$ |
492 |
|
|
$ |
1,653 |
|
Single Premium Immediate Annuities |
|
|
12 |
|
|
|
13 |
|
|
|
20 |
|
|
|
45 |
|
|
|
56 |
|
|
|
49 |
|
|
|
29 |
|
|
|
28 |
|
|
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sales |
|
$ |
260 |
|
|
$ |
224 |
|
|
$ |
326 |
|
|
$ |
810 |
|
|
$ |
495 |
|
|
$ |
371 |
|
|
$ |
429 |
|
|
$ |
520 |
|
|
$ |
1,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46
Corporate and Other
Division
47
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating LossCorporate and Other Division
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
|
|
|
$ |
1 |
|
|
$ |
|
|
|
$ |
1 |
|
|
$ |
|
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
3 |
|
Net investment income |
|
|
31 |
|
|
|
40 |
|
|
|
25 |
|
|
|
96 |
|
|
|
34 |
|
|
|
23 |
|
|
|
34 |
|
|
|
24 |
|
|
|
115 |
|
Net investment gains (losses) |
|
|
(16 |
) |
|
|
(5 |
) |
|
|
5 |
|
|
|
(16 |
) |
|
|
(19 |
) |
|
|
(24 |
) |
|
|
(3 |
) |
|
|
(18 |
) |
|
|
(64 |
) |
Insurance and investment product fees and other |
|
|
46 |
|
|
|
39 |
|
|
|
49 |
|
|
|
134 |
|
|
|
53 |
|
|
|
50 |
|
|
|
53 |
|
|
|
53 |
|
|
|
209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
61 |
|
|
|
75 |
|
|
|
79 |
|
|
|
215 |
|
|
|
68 |
|
|
|
50 |
|
|
|
85 |
|
|
|
60 |
|
|
|
263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
18 |
|
|
|
11 |
|
|
|
7 |
|
|
|
36 |
|
|
|
10 |
|
|
|
13 |
|
|
|
6 |
|
|
|
8 |
|
|
|
37 |
|
Interest credited |
|
|
31 |
|
|
|
31 |
|
|
|
30 |
|
|
|
92 |
|
|
|
31 |
|
|
|
30 |
|
|
|
29 |
|
|
|
29 |
|
|
|
119 |
|
Acquisition and operating expenses, net of deferrals |
|
|
48 |
|
|
|
34 |
|
|
|
25 |
|
|
|
107 |
|
|
|
30 |
|
|
|
24 |
|
|
|
33 |
|
|
|
30 |
|
|
|
117 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
17 |
|
|
|
10 |
|
|
|
6 |
|
|
|
33 |
|
|
|
14 |
|
|
|
6 |
|
|
|
10 |
|
|
|
12 |
|
|
|
42 |
|
Interest expense |
|
|
75 |
|
|
|
75 |
|
|
|
75 |
|
|
|
225 |
|
|
|
76 |
|
|
|
74 |
|
|
|
83 |
|
|
|
82 |
|
|
|
315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
189 |
|
|
|
161 |
|
|
|
143 |
|
|
|
493 |
|
|
|
161 |
|
|
|
147 |
|
|
|
161 |
|
|
|
161 |
|
|
|
630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(128 |
) |
|
|
(86 |
) |
|
|
(64 |
) |
|
|
(278 |
) |
|
|
(93 |
) |
|
|
(97 |
) |
|
|
(76 |
) |
|
|
(101 |
) |
|
|
(367 |
) |
Benefit for income taxes |
|
|
(52 |
) |
|
|
(36 |
) |
|
|
(27 |
) |
|
|
(115 |
) |
|
|
(37 |
) |
|
|
|
|
|
|
(24 |
) |
|
|
(50 |
) |
|
|
(111 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(76 |
) |
|
|
(50 |
) |
|
|
(37 |
) |
|
|
(163 |
) |
|
|
(56 |
) |
|
|
(97 |
) |
|
|
(52 |
) |
|
|
(51 |
) |
|
|
(256 |
) |
Income (loss) from discontinued operations, net of taxes |
|
|
(21 |
) |
|
|
(314 |
) |
|
|
1 |
|
|
|
(334 |
) |
|
|
138 |
|
|
|
6 |
|
|
|
4 |
|
|
|
9 |
|
|
|
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
(97 |
) |
|
|
(364 |
) |
|
|
(36 |
) |
|
|
(497 |
) |
|
|
82 |
|
|
|
(91 |
) |
|
|
(48 |
) |
|
|
(42 |
) |
|
|
(99 |
) |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO NET INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
8 |
|
|
|
1 |
|
|
|
(6 |
) |
|
|
3 |
|
|
|
9 |
|
|
|
11 |
|
|
|
1 |
|
|
|
11 |
|
|
|
32 |
|
(Gains) losses on early extinguishment of debt, net |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses related to restructuring, net |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax impact from potential business portfolio changes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
|
(Income) loss from discontinued operations, net of taxes |
|
|
21 |
|
|
|
314 |
|
|
|
(1 |
) |
|
|
334 |
|
|
|
(138 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
(9 |
) |
|
|
(157 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING LOSS |
|
$ |
(67 |
) |
|
$ |
(48 |
) |
|
$ |
(43 |
) |
|
$ |
(158 |
) |
|
$ |
(16 |
) |
|
$ |
(86 |
) |
|
$ |
(51 |
) |
|
$ |
(40 |
) |
|
$ |
(193 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating loss) |
|
|
42.1 |
% |
|
|
42.2 |
% |
|
|
38.1 |
% |
|
|
40.9 |
% |
|
|
80.8 |
% |
|
|
-7.2 |
% |
|
|
32.1 |
% |
|
|
52.0 |
% |
|
|
39.4 |
% |
48
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income (Loss)Corporate and Other Division
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2015 |
|
Runoff Segment |
|
|
Corporate and Other(1) |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Net investment income |
|
|
32 |
|
|
|
(1 |
) |
|
|
31 |
|
Net investment gains (losses) |
|
|
(25 |
) |
|
|
9 |
|
|
|
(16 |
) |
Insurance and investment product fees and other |
|
|
46 |
|
|
|
|
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
53 |
|
|
|
8 |
|
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
18 |
|
|
|
|
|
|
|
18 |
|
Interest credited |
|
|
31 |
|
|
|
|
|
|
|
31 |
|
Acquisition and operating expenses, net of deferrals |
|
|
17 |
|
|
|
31 |
|
|
|
48 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
17 |
|
|
|
|
|
|
|
17 |
|
Interest expense |
|
|
|
|
|
|
75 |
|
|
|
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
83 |
|
|
|
106 |
|
|
|
189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(30 |
) |
|
|
(98 |
) |
|
|
(128 |
) |
Benefit for income taxes |
|
|
(12 |
) |
|
|
(40 |
) |
|
|
(52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(18 |
) |
|
|
(58 |
) |
|
|
(76 |
) |
Loss from discontinued operations, net of taxes |
|
|
|
|
|
|
(21 |
) |
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
(18 |
) |
|
|
(79 |
) |
|
|
(97 |
) |
|
|
|
|
ADJUSTMENTS TO NET LOSS: |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
14 |
|
|
|
(6 |
) |
|
|
8 |
|
(Gains) losses on early extinguishment of debt, net |
|
|
|
|
|
|
1 |
|
|
|
1 |
|
Loss from discontinued operations, net of taxes |
|
|
|
|
|
|
21 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING LOSS |
|
$ |
(4 |
) |
|
$ |
(63 |
) |
|
$ |
(67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating loss) |
|
|
49.2 |
% |
|
|
41.5 |
% |
|
|
42.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2014 |
|
Runoff Segment |
|
|
Corporate and
Other(1) |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
1 |
|
|
$ |
|
|
|
$ |
1 |
|
Net investment income |
|
|
32 |
|
|
|
(9 |
) |
|
|
23 |
|
Net investment gains (losses) |
|
|
(33 |
) |
|
|
9 |
|
|
|
(24 |
) |
Insurance and investment product fees and other |
|
|
53 |
|
|
|
(3 |
) |
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
53 |
|
|
|
(3 |
) |
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
13 |
|
|
|
|
|
|
|
13 |
|
Interest credited |
|
|
30 |
|
|
|
|
|
|
|
30 |
|
Acquisition and operating expenses, net of deferrals |
|
|
22 |
|
|
|
2 |
|
|
|
24 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
5 |
|
|
|
1 |
|
|
|
6 |
|
Interest expense |
|
|
|
|
|
|
74 |
|
|
|
74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
70 |
|
|
|
77 |
|
|
|
147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(17 |
) |
|
|
(80 |
) |
|
|
(97 |
) |
Provision (benefit) for income taxes |
|
|
(5 |
) |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(12 |
) |
|
|
(85 |
) |
|
|
(97 |
) |
Income from discontinued operations, net of taxes |
|
|
|
|
|
|
6 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
(12 |
) |
|
|
(79 |
) |
|
|
(91 |
) |
|
|
|
|
ADJUSTMENTS TO NET LOSS: |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
17 |
|
|
|
(6 |
) |
|
|
11 |
|
Income from discontinued operations, net of taxes |
|
|
|
|
|
|
(6 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
5 |
|
|
$ |
(91 |
) |
|
$ |
(86 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
48.2 |
% |
|
|
-1.5 |
% |
|
|
-7.2 |
% |
(1) |
Includes inter-segment eliminations. |
49
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Operating Income (Loss)Corporate and Other Division
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2015 |
|
Runoff Segment |
|
|
Corporate and Other(1) |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
1 |
|
|
$ |
|
|
|
$ |
1 |
|
Net investment income |
|
|
103 |
|
|
|
(7 |
) |
|
|
96 |
|
Net investment gains (losses) |
|
|
(39 |
) |
|
|
23 |
|
|
|
(16 |
) |
Insurance and investment product fees and other |
|
|
144 |
|
|
|
(10 |
) |
|
|
134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
209 |
|
|
|
6 |
|
|
|
215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
36 |
|
|
|
|
|
|
|
36 |
|
Interest credited |
|
|
92 |
|
|
|
|
|
|
|
92 |
|
Acquisition and operating expenses, net of deferrals |
|
|
57 |
|
|
|
50 |
|
|
|
107 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
32 |
|
|
|
1 |
|
|
|
33 |
|
Interest expense |
|
|
1 |
|
|
|
224 |
|
|
|
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
218 |
|
|
|
275 |
|
|
|
493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(9 |
) |
|
|
(269 |
) |
|
|
(278 |
) |
Benefit for income taxes |
|
|
(7 |
) |
|
|
(108 |
) |
|
|
(115 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(2 |
) |
|
|
(161 |
) |
|
|
(163 |
) |
Loss from discontinued operations, net of taxes |
|
|
|
|
|
|
(334 |
) |
|
|
(334 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
(2 |
) |
|
|
(495 |
) |
|
|
(497 |
) |
|
|
|
|
ADJUSTMENTS TO NET LOSS: |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
18 |
|
|
|
(15 |
) |
|
|
3 |
|
(Gains) losses on early extinguishment of debt, net |
|
|
|
|
|
|
1 |
|
|
|
1 |
|
Expenses related to restructuring, net |
|
|
|
|
|
|
1 |
|
|
|
1 |
|
Loss from discontinued operations, net of taxes |
|
|
|
|
|
|
334 |
|
|
|
334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
16 |
|
|
$ |
(174 |
) |
|
$ |
(158 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
14.3 |
% |
|
|
40.0 |
% |
|
|
40.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2014 |
|
Runoff Segment |
|
|
Corporate and
Other(1) |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
3 |
|
|
$ |
|
|
|
$ |
3 |
|
Net investment income |
|
|
97 |
|
|
|
(16 |
) |
|
|
81 |
|
Net investment gains (losses) |
|
|
(43 |
) |
|
|
(2 |
) |
|
|
(45 |
) |
Insurance and investment product fees and other |
|
|
158 |
|
|
|
(2 |
) |
|
|
156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
215 |
|
|
|
(20 |
) |
|
|
195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
27 |
|
|
|
|
|
|
|
27 |
|
Interest credited |
|
|
88 |
|
|
|
|
|
|
|
88 |
|
Acquisition and operating expenses, net of deferrals |
|
|
62 |
|
|
|
25 |
|
|
|
87 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
26 |
|
|
|
2 |
|
|
|
28 |
|
Interest expense |
|
|
1 |
|
|
|
238 |
|
|
|
239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
204 |
|
|
|
265 |
|
|
|
469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
11 |
|
|
|
(285 |
) |
|
|
(274 |
) |
Benefit for income taxes |
|
|
|
|
|
|
(74 |
) |
|
|
(74 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
11 |
|
|
|
(211 |
) |
|
|
(200 |
) |
Income from discontinued operations, net of taxes |
|
|
|
|
|
|
19 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
11 |
|
|
|
(192 |
) |
|
|
(181 |
) |
|
|
|
|
ADJUSTMENTS TO NET INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
21 |
|
|
|
2 |
|
|
|
23 |
|
Income from discontinued operations, net of taxes |
|
|
|
|
|
|
(19 |
) |
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
32 |
|
|
$ |
(209 |
) |
|
$ |
(177 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
26.1 |
% |
|
|
26.0 |
% |
|
|
26.0 |
% |
(1) |
Includes inter-segment eliminations. |
50
Runoff Segment
51
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net
Operating Income (Loss)Runoff Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
|
|
|
$ |
1 |
|
|
$ |
|
|
|
$ |
1 |
|
|
$ |
|
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
3 |
|
Net investment income |
|
|
32 |
|
|
|
40 |
|
|
|
31 |
|
|
|
103 |
|
|
|
32 |
|
|
|
32 |
|
|
|
33 |
|
|
|
32 |
|
|
|
129 |
|
Net investment gains (losses) |
|
|
(25 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(39 |
) |
|
|
(23 |
) |
|
|
(33 |
) |
|
|
3 |
|
|
|
(13 |
) |
|
|
(66 |
) |
Insurance and investment product fees and other |
|
|
46 |
|
|
|
49 |
|
|
|
49 |
|
|
|
144 |
|
|
|
51 |
|
|
|
53 |
|
|
|
52 |
|
|
|
53 |
|
|
|
209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
53 |
|
|
|
82 |
|
|
|
74 |
|
|
|
209 |
|
|
|
60 |
|
|
|
53 |
|
|
|
89 |
|
|
|
73 |
|
|
|
275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
18 |
|
|
|
11 |
|
|
|
7 |
|
|
|
36 |
|
|
|
10 |
|
|
|
13 |
|
|
|
6 |
|
|
|
8 |
|
|
|
37 |
|
Interest credited |
|
|
31 |
|
|
|
31 |
|
|
|
30 |
|
|
|
92 |
|
|
|
31 |
|
|
|
30 |
|
|
|
29 |
|
|
|
29 |
|
|
|
119 |
|
Acquisition and operating expenses, net of deferrals |
|
|
17 |
|
|
|
21 |
|
|
|
19 |
|
|
|
57 |
|
|
|
22 |
|
|
|
22 |
|
|
|
20 |
|
|
|
20 |
|
|
|
84 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
17 |
|
|
|
10 |
|
|
|
5 |
|
|
|
32 |
|
|
|
13 |
|
|
|
5 |
|
|
|
10 |
|
|
|
11 |
|
|
|
39 |
|
Interest expense |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
83 |
|
|
|
74 |
|
|
|
61 |
|
|
|
218 |
|
|
|
76 |
|
|
|
70 |
|
|
|
66 |
|
|
|
68 |
|
|
|
280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(30 |
) |
|
|
8 |
|
|
|
13 |
|
|
|
(9 |
) |
|
|
(16 |
) |
|
|
(17 |
) |
|
|
23 |
|
|
|
5 |
|
|
|
(5 |
) |
Provision (benefit) for income taxes |
|
|
(12 |
) |
|
|
2 |
|
|
|
3 |
|
|
|
(7 |
) |
|
|
(19 |
) |
|
|
(5 |
) |
|
|
5 |
|
|
|
|
|
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(18 |
) |
|
|
6 |
|
|
|
10 |
|
|
|
(2 |
) |
|
|
3 |
|
|
|
(12 |
) |
|
|
18 |
|
|
|
5 |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
14 |
|
|
|
3 |
|
|
|
1 |
|
|
|
18 |
|
|
|
13 |
|
|
|
17 |
|
|
|
(3 |
) |
|
|
7 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME (LOSS) |
|
$ |
(4 |
) |
|
$ |
9 |
|
|
$ |
11 |
|
|
$ |
16 |
|
|
$ |
16 |
|
|
$ |
5 |
|
|
$ |
15 |
|
|
$ |
12 |
|
|
$ |
48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating income (loss)) |
|
|
49.2 |
% |
|
|
25.7 |
% |
|
|
26.7 |
% |
|
|
14.3 |
% |
|
|
NM |
(1) |
|
|
48.2 |
% |
|
|
16.1 |
% |
|
|
25.1 |
% |
|
|
-1.0 |
% |
(1) |
NM is defined as not meaningful for percentages greater than 200%. |
52
Corporate and Other
53
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net
Operating LossCorporate and Other(1)
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Net investment income |
|
|
(1 |
) |
|
|
|
|
|
|
(6 |
) |
|
|
(7 |
) |
|
|
2 |
|
|
|
(9 |
) |
|
|
1 |
|
|
|
(8 |
) |
|
|
(14 |
) |
Net investment gains (losses) |
|
|
9 |
|
|
|
3 |
|
|
|
11 |
|
|
|
23 |
|
|
|
4 |
|
|
|
9 |
|
|
|
(6 |
) |
|
|
(5 |
) |
|
|
2 |
|
Insurance and investment product fees and other |
|
|
|
|
|
|
(10 |
) |
|
|
|
|
|
|
(10 |
) |
|
|
2 |
|
|
|
(3 |
) |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
8 |
|
|
|
(7 |
) |
|
|
5 |
|
|
|
6 |
|
|
|
8 |
|
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(13 |
) |
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest credited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and operating expenses, net of deferrals |
|
|
31 |
|
|
|
13 |
|
|
|
6 |
|
|
|
50 |
|
|
|
8 |
|
|
|
2 |
|
|
|
13 |
|
|
|
10 |
|
|
|
33 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
3 |
|
Interest expense |
|
|
75 |
|
|
|
74 |
|
|
|
75 |
|
|
|
224 |
|
|
|
76 |
|
|
|
74 |
|
|
|
82 |
|
|
|
82 |
|
|
|
314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
106 |
|
|
|
87 |
|
|
|
82 |
|
|
|
275 |
|
|
|
85 |
|
|
|
77 |
|
|
|
95 |
|
|
|
93 |
|
|
|
350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(98 |
) |
|
|
(94 |
) |
|
|
(77 |
) |
|
|
(269 |
) |
|
|
(77 |
) |
|
|
(80 |
) |
|
|
(99 |
) |
|
|
(106 |
) |
|
|
(362 |
) |
Provision (benefit) for income taxes |
|
|
(40 |
) |
|
|
(38 |
) |
|
|
(30 |
) |
|
|
(108 |
) |
|
|
(18 |
) |
|
|
5 |
|
|
|
(29 |
) |
|
|
(50 |
) |
|
|
(92 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS |
|
|
(58 |
) |
|
|
(56 |
) |
|
|
(47 |
) |
|
|
(161 |
) |
|
|
(59 |
) |
|
|
(85 |
) |
|
|
(70 |
) |
|
|
(56 |
) |
|
|
(270 |
) |
Income (loss) from discontinued operations, net of taxes(2) |
|
|
(21 |
) |
|
|
(314 |
) |
|
|
1 |
|
|
|
(334 |
) |
|
|
138 |
|
|
|
6 |
|
|
|
4 |
|
|
|
9 |
|
|
|
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
(79 |
) |
|
|
(370 |
) |
|
|
(46 |
) |
|
|
(495 |
) |
|
|
79 |
|
|
|
(79 |
) |
|
|
(66 |
) |
|
|
(47 |
) |
|
|
(113 |
) |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO NET INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (gains) losses, net |
|
|
(6 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(15 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
|
|
4 |
|
|
|
4 |
|
|
|
(2 |
) |
(Gains) losses on early extinguishment of debt, net |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses related to restructuring, net |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax impact from potential business portfolio changes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
|
(Income) loss from discontinued operations, net of taxes |
|
|
21 |
|
|
|
314 |
|
|
|
(1 |
) |
|
|
334 |
|
|
|
(138 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
(9 |
) |
|
|
(157 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING LOSS |
|
$ |
(63 |
) |
|
$ |
(57 |
) |
|
$ |
(54 |
) |
|
$ |
(174 |
) |
|
$ |
(32 |
) |
|
$ |
(91 |
) |
|
$ |
(66 |
) |
|
$ |
(52 |
) |
|
$ |
(241 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (operating loss) |
|
|
41.5 |
% |
|
|
42.1 |
% |
|
|
36.2 |
% |
|
|
40.0 |
% |
|
|
61.8 |
% |
|
|
-1.5 |
% |
|
|
28.9 |
% |
|
|
47.7 |
% |
|
|
34.0 |
% |
(1) Includes inter-segment
eliminations. (2) Operating
results of the lifestyle protection insurance business presented as discontinued operations were as follows: |
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums |
|
$ |
169 |
|
|
$ |
168 |
|
|
$ |
180 |
|
|
$ |
517 |
|
|
$ |
173 |
|
|
$ |
184 |
|
|
$ |
199 |
|
|
$ |
174 |
|
|
$ |
730 |
|
Net investment income |
|
|
21 |
|
|
|
20 |
|
|
|
22 |
|
|
|
63 |
|
|
|
22 |
|
|
|
28 |
|
|
|
21 |
|
|
|
29 |
|
|
|
100 |
|
Net investment gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
Insurance and investment product fees and other |
|
|
|
|
|
|
2 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
190 |
|
|
|
190 |
|
|
|
200 |
|
|
|
580 |
|
|
|
195 |
|
|
|
214 |
|
|
|
222 |
|
|
|
205 |
|
|
|
836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and other changes in policy reserves |
|
|
46 |
|
|
|
53 |
|
|
|
51 |
|
|
|
150 |
|
|
|
48 |
|
|
|
53 |
|
|
|
56 |
|
|
|
46 |
|
|
|
203 |
|
Acquisition and operating expenses, net of deferrals |
|
|
105 |
|
|
|
105 |
|
|
|
113 |
|
|
|
323 |
|
|
|
107 |
|
|
|
113 |
|
|
|
122 |
|
|
|
105 |
|
|
|
447 |
|
Amortization of deferred acquisition costs and intangibles |
|
|
21 |
|
|
|
24 |
|
|
|
26 |
|
|
|
71 |
|
|
|
28 |
|
|
|
30 |
|
|
|
30 |
|
|
|
30 |
|
|
|
118 |
|
Interest expense |
|
|
7 |
|
|
|
6 |
|
|
|
9 |
|
|
|
22 |
|
|
|
11 |
|
|
|
10 |
|
|
|
9 |
|
|
|
15 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
179 |
|
|
|
188 |
|
|
|
199 |
|
|
|
566 |
|
|
|
194 |
|
|
|
206 |
|
|
|
217 |
|
|
|
196 |
|
|
|
813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES AND OTHER ITEMS |
|
|
11 |
|
|
|
2 |
|
|
|
1 |
|
|
|
14 |
|
|
|
1 |
|
|
|
8 |
|
|
|
5 |
|
|
|
9 |
|
|
|
23 |
|
Provision (benefit) for income taxes |
|
|
20 |
|
|
|
10 |
|
|
|
|
|
|
|
30 |
|
|
|
(137 |
) |
|
|
2 |
|
|
|
1 |
|
|
|
|
|
|
|
(134 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
(9 |
) |
|
|
(8 |
) |
|
|
1 |
|
|
|
(16 |
) |
|
|
138 |
|
|
|
6 |
|
|
|
4 |
|
|
|
9 |
|
|
|
157 |
|
Loss on sale, net of taxes |
|
|
(12 |
) |
|
|
(306 |
) |
|
|
|
|
|
|
(318 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES |
|
$ |
(21 |
) |
|
$ |
(314 |
) |
|
$ |
1 |
|
|
$ |
(334 |
) |
|
$ |
138 |
|
|
$ |
6 |
|
|
$ |
4 |
|
|
$ |
9 |
|
|
$ |
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
Additional Financial Data
55
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Investments Summary
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 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 |
|
$ |
33,644 |
|
|
|
44 |
% |
|
$ |
33,507 |
|
|
|
45 |
% |
|
$ |
34,644 |
|
|
|
44 |
% |
|
$ |
34,263 |
|
|
|
45 |
% |
|
$ |
34,111 |
|
|
|
45 |
% |
Private fixed maturity securities |
|
|
11,009 |
|
|
|
15 |
|
|
|
10,877 |
|
|
|
14 |
|
|
|
10,962 |
|
|
|
14 |
|
|
|
11,034 |
|
|
|
14 |
|
|
|
10,934 |
|
|
|
15 |
|
Residential mortgage-backed securities(1) |
|
|
5,009 |
|
|
|
7 |
|
|
|
4,954 |
|
|
|
7 |
|
|
|
5,011 |
|
|
|
6 |
|
|
|
5,082 |
|
|
|
7 |
|
|
|
4,990 |
|
|
|
7 |
|
Commercial mortgage-backed securities |
|
|
2,492 |
|
|
|
3 |
|
|
|
2,475 |
|
|
|
3 |
|
|
|
2,547 |
|
|
|
3 |
|
|
|
2,491 |
|
|
|
3 |
|
|
|
2,518 |
|
|
|
3 |
|
Other asset-backed securities |
|
|
3,904 |
|
|
|
5 |
|
|
|
3,837 |
|
|
|
5 |
|
|
|
3,767 |
|
|
|
5 |
|
|
|
3,669 |
|
|
|
5 |
|
|
|
3,770 |
|
|
|
5 |
|
State and political subdivisions |
|
|
2,447 |
|
|
|
3 |
|
|
|
2,388 |
|
|
|
3 |
|
|
|
2,350 |
|
|
|
3 |
|
|
|
2,222 |
|
|
|
3 |
|
|
|
2,182 |
|
|
|
3 |
|
Non-investment grade fixed maturity securities |
|
|
2,346 |
|
|
|
3 |
|
|
|
2,530 |
|
|
|
3 |
|
|
|
2,623 |
|
|
|
4 |
|
|
|
2,515 |
|
|
|
3 |
|
|
|
2,586 |
|
|
|
3 |
|
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stocks and mutual funds |
|
|
37 |
|
|
|
|
|
|
|
62 |
|
|
|
|
|
|
|
134 |
|
|
|
|
|
|
|
187 |
|
|
|
|
|
|
|
214 |
|
|
|
|
|
Preferred stocks |
|
|
236 |
|
|
|
|
|
|
|
237 |
|
|
|
1 |
|
|
|
165 |
|
|
|
|
|
|
|
88 |
|
|
|
|
|
|
|
92 |
|
|
|
|
|
Commercial mortgage loans |
|
|
6,133 |
|
|
|
8 |
|
|
|
6,175 |
|
|
|
8 |
|
|
|
6,149 |
|
|
|
8 |
|
|
|
6,100 |
|
|
|
8 |
|
|
|
6,077 |
|
|
|
8 |
|
Restricted commercial mortgage loans related to securitization entities |
|
|
175 |
|
|
|
|
|
|
|
181 |
|
|
|
|
|
|
|
188 |
|
|
|
|
|
|
|
201 |
|
|
|
|
|
|
|
209 |
|
|
|
|
|
Policy loans |
|
|
1,567 |
|
|
|
2 |
|
|
|
1,584 |
|
|
|
2 |
|
|
|
1,506 |
|
|
|
2 |
|
|
|
1,501 |
|
|
|
2 |
|
|
|
1,512 |
|
|
|
2 |
|
Cash, cash equivalents and short-term investments |
|
|
4,042 |
|
|
|
6 |
|
|
|
4,459 |
|
|
|
6 |
|
|
|
5,380 |
|
|
|
7 |
|
|
|
4,990 |
|
|
|
7 |
|
|
|
3,424 |
|
|
|
5 |
|
Securities lending |
|
|
367 |
|
|
|
|
|
|
|
337 |
|
|
|
|
|
|
|
323 |
|
|
|
1 |
|
|
|
289 |
|
|
|
1 |
|
|
|
339 |
|
|
|
1 |
|
Other invested assets: |
|
Limited partnerships |
|
|
195 |
|
|
|
|
|
|
|
216 |
|
|
|
|
|
|
|
215 |
|
|
|
|
|
|
|
252 |
|
|
|
|
|
|
|
262 |
|
|
|
|
|
|
|
Derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term care (LTC) forward starting swapcash flow |
|
|
768 |
|
|
|
1 |
|
|
|
423 |
|
|
|
1 |
|
|
|
948 |
|
|
|
1 |
|
|
|
639 |
|
|
|
1 |
|
|
|
252 |
|
|
|
|
|
|
|
Other cash flow |
|
|
8 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
9 |
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
Equity index optionsnon-qualified |
|
|
15 |
|
|
|
|
|
|
|
12 |
|
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
17 |
|
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
Other non-qualified |
|
|
534 |
|
|
|
1 |
|
|
|
416 |
|
|
|
|
|
|
|
512 |
|
|
|
1 |
|
|
|
470 |
|
|
|
|
|
|
|
391 |
|
|
|
1 |
|
|
|
Trading portfolio |
|
|
458 |
|
|
|
1 |
|
|
|
368 |
|
|
|
1 |
|
|
|
218 |
|
|
|
|
|
|
|
241 |
|
|
|
|
|
|
|
226 |
|
|
|
|
|
|
|
Counterparty collateral |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
522 |
|
|
|
1 |
|
|
|
Restricted other invested assets related to securitization entities |
|
|
412 |
|
|
|
1 |
|
|
|
410 |
|
|
|
1 |
|
|
|
411 |
|
|
|
1 |
|
|
|
411 |
|
|
|
1 |
|
|
|
404 |
|
|
|
1 |
|
|
|
Other |
|
|
52 |
|
|
|
|
|
|
|
52 |
|
|
|
|
|
|
|
48 |
|
|
|
|
|
|
|
56 |
|
|
|
|
|
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total invested assets and cash |
|
$ |
75,850 |
|
|
|
100 |
% |
|
$ |
75,508 |
|
|
|
100 |
% |
|
$ |
78,125 |
|
|
|
100 |
% |
|
$ |
76,724 |
|
|
|
100 |
% |
|
$ |
75,101 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Fixed Maturity SecuritiesCredit Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSRO(2)
Designation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA |
|
|
|
$ |
15,068 |
|
|
|
33 |
% |
|
$ |
14,931 |
|
|
|
33 |
% |
|
$ |
15,531 |
|
|
|
33 |
% |
|
$ |
15,611 |
|
|
|
34 |
% |
|
$ |
15,314 |
|
|
|
33 |
% |
AA |
|
|
|
|
4,613 |
|
|
|
10 |
|
|
|
4,773 |
|
|
|
11 |
|
|
|
4,858 |
|
|
|
11 |
|
|
|
4,741 |
|
|
|
10 |
|
|
|
4,821 |
|
|
|
11 |
|
A |
|
|
|
|
13,553 |
|
|
|
30 |
|
|
|
13,441 |
|
|
|
30 |
|
|
|
13,845 |
|
|
|
30 |
|
|
|
13,645 |
|
|
|
30 |
|
|
|
13,550 |
|
|
|
30 |
|
BBB |
|
|
|
|
10,681 |
|
|
|
24 |
|
|
|
10,590 |
|
|
|
23 |
|
|
|
10,721 |
|
|
|
23 |
|
|
|
10,498 |
|
|
|
23 |
|
|
|
10,625 |
|
|
|
23 |
|
BB |
|
|
|
|
1,234 |
|
|
|
3 |
|
|
|
1,276 |
|
|
|
3 |
|
|
|
1,385 |
|
|
|
3 |
|
|
|
1,361 |
|
|
|
3 |
|
|
|
1,386 |
|
|
|
3 |
|
B |
|
|
|
|
50 |
|
|
|
|
|
|
|
68 |
|
|
|
|
|
|
|
75 |
|
|
|
|
|
|
|
76 |
|
|
|
|
|
|
|
77 |
|
|
|
|
|
CCC and lower |
|
|
|
|
95 |
|
|
|
|
|
|
|
99 |
|
|
|
|
|
|
|
108 |
|
|
|
|
|
|
|
112 |
|
|
|
|
|
|
|
114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total public fixed maturity securities |
|
$ |
45,294 |
|
|
|
100 |
% |
|
$ |
45,178 |
|
|
|
100 |
% |
|
$ |
46,523 |
|
|
|
100 |
% |
|
$ |
46,044 |
|
|
|
100 |
% |
|
$ |
45,887 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Fixed Maturity SecuritiesCredit Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSRO(2)
Designation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA |
|
|
|
$ |
1,730 |
|
|
|
11 |
% |
|
$ |
1,646 |
|
|
|
11 |
% |
|
$ |
1,514 |
|
|
|
10 |
% |
|
$ |
1,569 |
|
|
|
10 |
% |
|
$ |
1,550 |
|
|
|
10 |
% |
AA |
|
|
|
|
1,982 |
|
|
|
13 |
|
|
|
1,957 |
|
|
|
13 |
|
|
|
1,956 |
|
|
|
13 |
|
|
|
2,007 |
|
|
|
14 |
|
|
|
1,803 |
|
|
|
12 |
|
A |
|
|
|
|
4,805 |
|
|
|
31 |
|
|
|
4,847 |
|
|
|
31 |
|
|
|
4,846 |
|
|
|
31 |
|
|
|
4,602 |
|
|
|
30 |
|
|
|
4,743 |
|
|
|
31 |
|
BBB |
|
|
|
|
6,073 |
|
|
|
39 |
|
|
|
5,853 |
|
|
|
38 |
|
|
|
6,010 |
|
|
|
39 |
|
|
|
6,088 |
|
|
|
40 |
|
|
|
6,099 |
|
|
|
40 |
|
BB |
|
|
|
|
839 |
|
|
|
5 |
|
|
|
973 |
|
|
|
6 |
|
|
|
910 |
|
|
|
6 |
|
|
|
792 |
|
|
|
5 |
|
|
|
835 |
|
|
|
5 |
|
B |
|
|
|
|
114 |
|
|
|
1 |
|
|
|
101 |
|
|
|
1 |
|
|
|
127 |
|
|
|
1 |
|
|
|
95 |
|
|
|
1 |
|
|
|
95 |
|
|
|
1 |
|
CCC and lower |
|
|
|
|
14 |
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
18 |
|
|
|
|
|
|
|
79 |
|
|
|
|
|
|
|
79 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total private fixed maturity securities |
|
$ |
15,557 |
|
|
|
100 |
% |
|
$ |
15,390 |
|
|
|
100 |
% |
|
$ |
15,381 |
|
|
|
100 |
% |
|
$ |
15,232 |
|
|
|
100 |
% |
|
$ |
15,204 |
|
|
|
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. |
56
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Fixed Maturity Securities Summary
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
|
|
Fair Value |
|
|
% of Total |
|
|
Fair Value |
|
|
% of Total |
|
|
Fair Value |
|
|
% of Total |
|
|
Fair Value |
|
|
% of Total |
|
|
Fair Value |
|
|
% of Total |
|
Fixed Maturity SecuritiesSecurity Sector: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government, agencies and government-sponsored enterprises |
|
$ |
5,913 |
|
|
|
10 |
% |
|
$ |
5,721 |
|
|
|
9 |
% |
|
$ |
6,132 |
|
|
|
10 |
% |
|
$ |
6,000 |
|
|
|
10 |
% |
|
$ |
5,642 |
|
|
|
9 |
% |
State and political subdivisions |
|
|
2,448 |
|
|
|
4 |
|
|
|
2,389 |
|
|
|
4 |
|
|
|
2,351 |
|
|
|
4 |
|
|
|
2,222 |
|
|
|
4 |
|
|
|
2,183 |
|
|
|
4 |
|
Foreign government |
|
|
1,952 |
|
|
|
3 |
|
|
|
1,970 |
|
|
|
3 |
|
|
|
1,853 |
|
|
|
3 |
|
|
|
1,920 |
|
|
|
3 |
|
|
|
1,828 |
|
|
|
3 |
|
U.S. corporate |
|
|
25,695 |
|
|
|
43 |
|
|
|
25,151 |
|
|
|
42 |
|
|
|
25,820 |
|
|
|
42 |
|
|
|
25,236 |
|
|
|
41 |
|
|
|
25,017 |
|
|
|
41 |
|
Foreign corporate |
|
|
13,199 |
|
|
|
22 |
|
|
|
13,797 |
|
|
|
23 |
|
|
|
14,103 |
|
|
|
23 |
|
|
|
14,263 |
|
|
|
23 |
|
|
|
14,743 |
|
|
|
24 |
|
Residential mortgage-backed securities |
|
|
5,118 |
|
|
|
8 |
|
|
|
5,085 |
|
|
|
9 |
|
|
|
5,153 |
|
|
|
8 |
|
|
|
5,228 |
|
|
|
9 |
|
|
|
5,142 |
|
|
|
8 |
|
Commercial mortgage-backed securities |
|
|
2,587 |
|
|
|
4 |
|
|
|
2,582 |
|
|
|
4 |
|
|
|
2,690 |
|
|
|
4 |
|
|
|
2,702 |
|
|
|
4 |
|
|
|
2,728 |
|
|
|
5 |
|
Other asset-backed securities |
|
|
3,939 |
|
|
|
6 |
|
|
|
3,873 |
|
|
|
6 |
|
|
|
3,802 |
|
|
|
6 |
|
|
|
3,705 |
|
|
|
6 |
|
|
|
3,808 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed maturity securities |
|
$ |
60,851 |
|
|
|
100 |
% |
|
$ |
60,568 |
|
|
|
100 |
% |
|
$ |
61,904 |
|
|
|
100 |
% |
|
$ |
61,276 |
|
|
|
100 |
% |
|
$ |
61,091 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond HoldingsIndustry Sector: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and insurance |
|
$ |
8,346 |
|
|
|
23 |
% |
|
$ |
8,103 |
|
|
|
22 |
% |
|
$ |
8,273 |
|
|
|
22 |
% |
|
$ |
8,185 |
|
|
|
22 |
% |
|
$ |
8,253 |
|
|
|
22 |
% |
Utilities |
|
|
4,630 |
|
|
|
12 |
|
|
|
4,580 |
|
|
|
12 |
|
|
|
4,798 |
|
|
|
13 |
|
|
|
4,694 |
|
|
|
13 |
|
|
|
5,194 |
|
|
|
14 |
|
Energy |
|
|
4,261 |
|
|
|
11 |
|
|
|
4,416 |
|
|
|
12 |
|
|
|
4,564 |
|
|
|
12 |
|
|
|
4,531 |
|
|
|
12 |
|
|
|
3,982 |
|
|
|
11 |
|
Consumernon-cyclical |
|
|
4,668 |
|
|
|
13 |
|
|
|
4,525 |
|
|
|
12 |
|
|
|
4,631 |
|
|
|
12 |
|
|
|
4,602 |
|
|
|
12 |
|
|
|
4,598 |
|
|
|
12 |
|
Consumercyclical |
|
|
2,301 |
|
|
|
6 |
|
|
|
2,337 |
|
|
|
6 |
|
|
|
2,373 |
|
|
|
6 |
|
|
|
2,358 |
|
|
|
6 |
|
|
|
2,362 |
|
|
|
6 |
|
Capital goods |
|
|
2,483 |
|
|
|
7 |
|
|
|
2,450 |
|
|
|
7 |
|
|
|
2,429 |
|
|
|
7 |
|
|
|
2,423 |
|
|
|
7 |
|
|
|
2,354 |
|
|
|
6 |
|
Industrial |
|
|
2,143 |
|
|
|
6 |
|
|
|
2,237 |
|
|
|
6 |
|
|
|
2,320 |
|
|
|
6 |
|
|
|
2,252 |
|
|
|
6 |
|
|
|
2,290 |
|
|
|
6 |
|
Technology and communications |
|
|
3,111 |
|
|
|
8 |
|
|
|
3,120 |
|
|
|
9 |
|
|
|
3,104 |
|
|
|
8 |
|
|
|
3,037 |
|
|
|
8 |
|
|
|
3,084 |
|
|
|
8 |
|
Transportation |
|
|
1,700 |
|
|
|
5 |
|
|
|
1,634 |
|
|
|
5 |
|
|
|
1,692 |
|
|
|
4 |
|
|
|
1,614 |
|
|
|
4 |
|
|
|
1,658 |
|
|
|
5 |
|
Other |
|
|
3,232 |
|
|
|
9 |
|
|
|
3,374 |
|
|
|
9 |
|
|
|
3,522 |
|
|
|
10 |
|
|
|
3,748 |
|
|
|
10 |
|
|
|
3,865 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
36,875 |
|
|
|
100 |
% |
|
|
36,776 |
|
|
|
100 |
% |
|
|
37,706 |
|
|
|
100 |
% |
|
|
37,444 |
|
|
|
100 |
% |
|
|
37,640 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Investment Grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and insurance |
|
|
380 |
|
|
|
19 |
% |
|
|
443 |
|
|
|
20 |
% |
|
|
471 |
|
|
|
21 |
% |
|
|
480 |
|
|
|
23 |
% |
|
|
481 |
|
|
|
22 |
% |
Utilities |
|
|
67 |
|
|
|
3 |
|
|
|
67 |
|
|
|
3 |
|
|
|
67 |
|
|
|
3 |
|
|
|
83 |
|
|
|
5 |
|
|
|
100 |
|
|
|
5 |
|
Energy |
|
|
401 |
|
|
|
20 |
|
|
|
408 |
|
|
|
19 |
|
|
|
363 |
|
|
|
16 |
|
|
|
261 |
|
|
|
13 |
|
|
|
291 |
|
|
|
14 |
|
Consumernon-cyclical |
|
|
229 |
|
|
|
11 |
|
|
|
257 |
|
|
|
12 |
|
|
|
262 |
|
|
|
12 |
|
|
|
229 |
|
|
|
11 |
|
|
|
211 |
|
|
|
10 |
|
Consumercyclical |
|
|
98 |
|
|
|
5 |
|
|
|
99 |
|
|
|
5 |
|
|
|
117 |
|
|
|
5 |
|
|
|
91 |
|
|
|
4 |
|
|
|
71 |
|
|
|
3 |
|
Capital goods |
|
|
204 |
|
|
|
10 |
|
|
|
234 |
|
|
|
11 |
|
|
|
236 |
|
|
|
11 |
|
|
|
214 |
|
|
|
10 |
|
|
|
292 |
|
|
|
14 |
|
Industrial |
|
|
254 |
|
|
|
13 |
|
|
|
240 |
|
|
|
11 |
|
|
|
238 |
|
|
|
11 |
|
|
|
260 |
|
|
|
13 |
|
|
|
254 |
|
|
|
12 |
|
Technology and communications |
|
|
293 |
|
|
|
14 |
|
|
|
337 |
|
|
|
15 |
|
|
|
364 |
|
|
|
16 |
|
|
|
354 |
|
|
|
17 |
|
|
|
358 |
|
|
|
17 |
|
Transportation |
|
|
2 |
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
19 |
|
|
|
1 |
|
|
|
19 |
|
|
|
1 |
|
|
|
20 |
|
|
|
1 |
|
Other |
|
|
91 |
|
|
|
5 |
|
|
|
84 |
|
|
|
4 |
|
|
|
80 |
|
|
|
4 |
|
|
|
64 |
|
|
|
3 |
|
|
|
42 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
2,019 |
|
|
|
100 |
% |
|
|
2,172 |
|
|
|
100 |
% |
|
|
2,217 |
|
|
|
100 |
% |
|
|
2,055 |
|
|
|
100 |
% |
|
|
2,120 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
38,894 |
|
|
|
100 |
% |
|
$ |
38,948 |
|
|
|
100 |
% |
|
$ |
39,923 |
|
|
|
100 |
% |
|
$ |
39,499 |
|
|
|
100 |
% |
|
$ |
39,760 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Maturity SecuritiesContractual Maturity Dates: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due in one year or less |
|
$ |
2,147 |
|
|
|
4 |
% |
|
$ |
2,069 |
|
|
|
3 |
% |
|
$ |
1,870 |
|
|
|
3 |
% |
|
$ |
2,060 |
|
|
|
3 |
% |
|
$ |
2,406 |
|
|
|
4 |
% |
Due after one year through five years |
|
|
10,950 |
|
|
|
18 |
|
|
|
11,069 |
|
|
|
19 |
|
|
|
10,965 |
|
|
|
18 |
|
|
|
10,776 |
|
|
|
18 |
|
|
|
10,315 |
|
|
|
17 |
|
Due after five years through ten years |
|
|
12,155 |
|
|
|
20 |
|
|
|
12,212 |
|
|
|
20 |
|
|
|
12,198 |
|
|
|
20 |
|
|
|
12,334 |
|
|
|
20 |
|
|
|
12,934 |
|
|
|
21 |
|
Due after ten years |
|
|
23,955 |
|
|
|
40 |
|
|
|
23,678 |
|
|
|
39 |
|
|
|
25,226 |
|
|
|
41 |
|
|
|
24,471 |
|
|
|
40 |
|
|
|
23,758 |
|
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
49,207 |
|
|
|
82 |
|
|
|
49,028 |
|
|
|
81 |
|
|
|
50,259 |
|
|
|
82 |
|
|
|
49,641 |
|
|
|
81 |
|
|
|
49,413 |
|
|
|
81 |
|
Mortgage and asset-backed securities |
|
|
11,644 |
|
|
|
18 |
|
|
|
11,540 |
|
|
|
19 |
|
|
|
11,645 |
|
|
|
18 |
|
|
|
11,635 |
|
|
|
19 |
|
|
|
11,678 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed maturity securities |
|
$ |
60,851 |
|
|
|
100 |
% |
|
$ |
60,568 |
|
|
|
100 |
% |
|
$ |
61,904 |
|
|
|
100 |
% |
|
$ |
61,276 |
|
|
|
100 |
% |
|
$ |
61,091 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
General Account GAAP Net
Investment Income Yields
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
GAAP Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securitiestaxable |
|
$ |
647 |
|
|
$ |
645 |
|
|
$ |
632 |
|
|
$ |
1,924 |
|
|
$ |
658 |
|
|
$ |
643 |
|
|
$ |
658 |
|
|
$ |
639 |
|
|
$ |
2,598 |
|
Fixed maturity securitiesnon-taxable |
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
9 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
12 |
|
Commercial mortgage loans |
|
|
84 |
|
|
|
83 |
|
|
|
85 |
|
|
|
252 |
|
|
|
87 |
|
|
|
82 |
|
|
|
81 |
|
|
|
83 |
|
|
|
333 |
|
Restricted commercial mortgage loans related to securitization entities |
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
10 |
|
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
14 |
|
Equity securities |
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
11 |
|
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
14 |
|
Other invested assets |
|
|
22 |
|
|
|
17 |
|
|
|
33 |
|
|
|
72 |
|
|
|
22 |
|
|
|
17 |
|
|
|
12 |
|
|
|
18 |
|
|
|
69 |
|
Limited partnerships |
|
|
4 |
|
|
|
20 |
|
|
|
7 |
|
|
|
31 |
|
|
|
2 |
|
|
|
10 |
|
|
|
13 |
|
|
|
11 |
|
|
|
36 |
|
Restricted other invested assets related to securitization entities |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
Policy loans |
|
|
33 |
|
|
|
35 |
|
|
|
33 |
|
|
|
101 |
|
|
|
34 |
|
|
|
32 |
|
|
|
32 |
|
|
|
31 |
|
|
|
129 |
|
Cash, cash equivalents and short-term investments |
|
|
3 |
|
|
|
4 |
|
|
|
3 |
|
|
|
10 |
|
|
|
5 |
|
|
|
7 |
|
|
|
7 |
|
|
|
5 |
|
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross investment income before expenses and fees |
|
|
803 |
|
|
|
815 |
|
|
|
805 |
|
|
|
2,423 |
|
|
|
819 |
|
|
|
801 |
|
|
|
815 |
|
|
|
799 |
|
|
|
3,234 |
|
Expenses and fees |
|
|
(20 |
) |
|
|
(22 |
) |
|
|
(24 |
) |
|
|
(66 |
) |
|
|
(22 |
) |
|
|
(23 |
) |
|
|
(24 |
) |
|
|
(23 |
) |
|
|
(92 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
783 |
|
|
$ |
793 |
|
|
$ |
781 |
|
|
$ |
2,357 |
|
|
$ |
797 |
|
|
$ |
778 |
|
|
$ |
791 |
|
|
$ |
776 |
|
|
$ |
3,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Yields |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securitiestaxable |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.7 |
% |
|
|
4.6 |
% |
|
|
4.8 |
% |
|
|
4.7 |
% |
|
|
4.7 |
% |
Fixed maturity securitiesnon-taxable |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
3.4 |
% |
|
|
3.5 |
% |
|
|
3.7 |
% |
|
|
3.5 |
% |
Commercial mortgage loans |
|
|
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 |
|
|
6.4 |
% |
|
|
7.2 |
% |
|
|
8.2 |
% |
|
|
7.2 |
% |
|
|
5.8 |
% |
|
|
6.6 |
% |
|
|
6.7 |
% |
|
|
7.0 |
% |
|
|
6.6 |
% |
Equity securities |
|
|
4.0 |
% |
|
|
5.6 |
% |
|
|
6.1 |
% |
|
|
5.2 |
% |
|
|
4.6 |
% |
|
|
4.4 |
% |
|
|
5.5 |
% |
|
|
5.2 |
% |
|
|
5.0 |
% |
Other invested assets |
|
|
22.2 |
% |
|
|
24.2 |
% |
|
|
60.6 |
% |
|
|
31.3 |
% |
|
|
37.1 |
% |
|
|
27.7 |
% |
|
|
18.7 |
% |
|
|
26.3 |
% |
|
|
27.3 |
% |
Limited partnerships(1) |
|
|
7.8 |
% |
|
|
37.0 |
% |
|
|
12.0 |
% |
|
|
18.8 |
% |
|
|
3.1 |
% |
|
|
15.3 |
% |
|
|
19.6 |
% |
|
|
16.1 |
% |
|
|
13.6 |
% |
Restricted other invested assets related to securitization entities |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
2.1 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
1.3 |
% |
Policy loans |
|
|
8.4 |
% |
|
|
9.1 |
% |
|
|
8.8 |
% |
|
|
8.7 |
% |
|
|
9.0 |
% |
|
|
8.5 |
% |
|
|
8.7 |
% |
|
|
8.6 |
% |
|
|
8.7 |
% |
Cash, cash equivalents and short-term investments |
|
|
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 |
% |
|
|
4.7 |
% |
|
|
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
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 62 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. |
58
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Net Investment Gains (Losses), NetDetail(1)
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
Net realized gains (losses) on available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. corporate |
|
$ |
(2 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(2 |
) |
|
$ |
1 |
|
|
$ |
5 |
|
|
$ |
(6 |
) |
|
$ |
(9 |
) |
|
$ |
(9 |
) |
U.S. government, agencies and government-sponsored enterprises |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
3 |
|
Foreign corporate |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
|
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities |
|
|
2 |
|
|
|
8 |
|
|
|
5 |
|
|
|
15 |
|
|
|
1 |
|
|
|
2 |
|
|
|
6 |
|
|
|
1 |
|
|
|
10 |
|
Foreign exchange |
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net realized gains (losses) on available-for-sale securities |
|
|
(3 |
) |
|
|
9 |
|
|
|
3 |
|
|
|
9 |
|
|
|
5 |
|
|
|
8 |
|
|
|
16 |
|
|
|
(12 |
) |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alt-A residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Financial hybrid securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
(3 |
) |
Corporate fixed maturity securities |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loans |
|
|
(1 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Other asset-backed securities |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impairments |
|
|
(6 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
(8 |
) |
|
|
|
|
|
|
(4 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on trading securities |
|
|
8 |
|
|
|
(11 |
) |
|
|
4 |
|
|
|
1 |
|
|
|
10 |
|
|
|
3 |
|
|
|
5 |
|
|
|
8 |
|
|
|
26 |
|
Derivative instruments |
|
|
(34 |
) |
|
|
4 |
|
|
|
(21 |
) |
|
|
(51 |
) |
|
|
(24 |
) |
|
|
(25 |
) |
|
|
(4 |
) |
|
|
(14 |
) |
|
|
(67 |
) |
Limited partnerships |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
Commercial mortgage loans held-for-sale market valuation allowance |
|
|
|
|
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
8 |
|
Contingent purchase price valuation change |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Net gains (losses) related to securitization entities |
|
|
|
|
|
|
1 |
|
|
|
5 |
|
|
|
6 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
6 |
|
|
|
4 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment gains (losses), net of taxes |
|
|
(33 |
) |
|
|
5 |
|
|
|
(10 |
) |
|
|
(38 |
) |
|
|
(6 |
) |
|
|
(18 |
) |
|
|
23 |
|
|
|
(13 |
) |
|
|
(14 |
) |
Adjustment for DAC and other intangible amortization and certain benefit reserves, net of taxes |
|
|
6 |
|
|
|
5 |
|
|
|
4 |
|
|
|
15 |
|
|
|
1 |
|
|
|
6 |
|
|
|
1 |
|
|
|
1 |
|
|
|
9 |
|
Adjustment for net investment (gains) losses attributable to noncontrolling interests, net of taxes |
|
|
5 |
|
|
|
(6 |
) |
|
|
5 |
|
|
|
4 |
|
|
|
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. |
59
Reconciliations of Non-GAAP Measures
60
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Reconciliation of Operating ROE
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Month Rolling Average ROE |
|
Twelve months ended |
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
GAAP Basis ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) available to Genworth Financial, Inc.s common stockholders for the twelve months ended(1) |
|
$ |
(1,083 |
) |
|
$ |
(1,643 |
) |
|
$ |
(1,274 |
) |
|
$ |
(1,244 |
) |
|
$ |
(276 |
) |
Quarterly average Genworth Financial, Inc.s stockholders equity, excluding accumulated other comprehensive income (loss)(2) |
|
$ |
10,564 |
|
|
$ |
10,958 |
|
|
$ |
11,288 |
|
|
$ |
11,532 |
|
|
$ |
11,770 |
|
GAAP Basis ROE(1)/(2) |
|
|
-10.3 |
% |
|
|
-15.0 |
% |
|
|
-11.3 |
% |
|
|
-10.8 |
% |
|
|
-2.3 |
% |
|
|
|
|
|
|
Operating ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (loss) for the twelve months ended(1) |
|
$ |
(78 |
) |
|
$ |
(465 |
) |
|
$ |
(430 |
) |
|
$ |
(398 |
) |
|
$ |
197 |
|
Quarterly average Genworth Financial, Inc.s stockholders equity, excluding accumulated other comprehensive income (loss)(2) |
|
$ |
10,564 |
|
|
$ |
10,958 |
|
|
$ |
11,288 |
|
|
$ |
11,532 |
|
|
$ |
11,770 |
|
Operating ROE(1)/(2) |
|
|
-0.7 |
% |
|
|
-4.2 |
% |
|
|
-3.8 |
% |
|
|
-3.5 |
% |
|
|
1.7 |
% |
|
|
Quarterly Average ROE |
|
Three months ended |
|
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
GAAP Basis ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) available to Genworth Financial, Inc.s common stockholders for the period ended(3) |
|
$ |
(284 |
) |
|
$ |
(193 |
) |
|
$ |
154 |
|
|
$ |
(760 |
) |
|
$ |
(844 |
) |
Quarterly average Genworth Financial, Inc.s stockholders equity for the period, excluding accumulated other comprehensive
income (loss)(4) |
|
$ |
10,241 |
|
|
$ |
10,507 |
|
|
$ |
10,555 |
|
|
$ |
10,854 |
|
|
$ |
11,651 |
|
Annualized GAAP Quarterly Basis ROE(3)/(4) |
|
|
-11.1 |
% |
|
|
-7.3 |
% |
|
|
5.8 |
% |
|
|
-28.0 |
% |
|
|
-29.0 |
% |
|
|
|
|
|
|
Operating ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (loss) for the period ended(3) |
|
$ |
64 |
|
|
$ |
119 |
|
|
$ |
154 |
|
|
$ |
(415 |
) |
|
$ |
(323 |
) |
Quarterly average Genworth Financial, Inc.s stockholders equity for the period, excluding accumulated other comprehensive
income (loss)(4) |
|
$ |
10,241 |
|
|
$ |
10,507 |
|
|
$ |
10,555 |
|
|
$ |
10,854 |
|
|
$ |
11,651 |
|
Annualized Operating Quarterly Basis ROE(3)/(4) |
|
|
2.5 |
% |
|
|
4.5 |
% |
|
|
5.8 |
% |
|
|
-15.3 |
% |
|
|
-11.1 |
% |
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). |
61
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Reconciliation of Core Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
(Assets amounts in billions) |
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
|
ReportedTotal Invested Assets and Cash |
|
$ |
75.9 |
|
|
$ |
75.5 |
|
|
$ |
78.1 |
|
|
$ |
75.9 |
|
|
$ |
76.7 |
|
|
$ |
75.1 |
|
|
$ |
75.3 |
|
|
$ |
73.2 |
|
|
$ |
76.7 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities lending |
|
|
0.4 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
Unrealized gains (losses) |
|
|
5.4 |
|
|
|
4.9 |
|
|
|
7.8 |
|
|
|
5.4 |
|
|
|
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 |
|
$ |
70.1 |
|
|
$ |
70.3 |
|
|
$ |
70.0 |
|
|
$ |
70.1 |
|
|
$ |
69.8 |
|
|
$ |
69.0 |
|
|
$ |
69.1 |
|
|
$ |
68.3 |
|
|
$ |
69.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) |
|
Average Invested Assets and Cash Used in Reported Yield Calculation |
|
$ |
70.2 |
|
|
$ |
70.2 |
|
|
$ |
69.9 |
|
|
$ |
70.1 |
|
|
$ |
69.4 |
|
|
$ |
69.1 |
|
|
$ |
68.7 |
|
|
$ |
68.2 |
|
|
$ |
68.9 |
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) |
|
Average Invested Assets and Cash Used in Core Yield Calculation |
|
|
70.0 |
|
|
|
70.0 |
|
|
|
69.7 |
|
|
|
69.9 |
|
|
|
69.2 |
|
|
|
68.9 |
|
|
|
68.5 |
|
|
|
68.0 |
|
|
|
68.7 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolios supporting floating products and non-recourse funding
obligations(2) |
|
|
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 |
|
|
$ |
66.4 |
|
|
$ |
66.0 |
|
|
$ |
66.3 |
|
|
$ |
65.3 |
|
|
$ |
64.9 |
|
|
$ |
64.3 |
|
|
$ |
63.7 |
|
|
$ |
64.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Incomeamounts in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D) |
|
ReportedNet Investment Income |
|
$ |
783 |
|
|
$ |
793 |
|
|
$ |
781 |
|
|
$ |
2,357 |
|
|
$ |
797 |
|
|
$ |
778 |
|
|
$ |
791 |
|
|
$ |
776 |
|
|
$ |
3,142 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond calls and commercial mortgage loan prepayments |
|
|
12 |
|
|
|
17 |
|
|
|
14 |
|
|
|
43 |
|
|
|
18 |
|
|
|
17 |
|
|
|
7 |
|
|
|
10 |
|
|
|
52 |
|
|
|
Other non-core items(3) |
|
|
1 |
|
|
|
(4 |
) |
|
|
7 |
|
|
|
4 |
|
|
|
8 |
|
|
|
(22 |
) |
|
|
8 |
|
|
|
(7 |
) |
|
|
(13 |
) |
|
|
Restricted commercial mortgage loans and other invested assets related to securitization entities(1) |
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
7 |
|
|
|
2 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(E) |
|
Core Net Investment Income |
|
|
768 |
|
|
|
778 |
|
|
|
757 |
|
|
|
2,303 |
|
|
|
769 |
|
|
|
780 |
|
|
|
773 |
|
|
|
770 |
|
|
|
3,092 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income from portfolios supporting floating products and non-recourse funding obligations(2) |
|
|
21 |
|
|
|
26 |
|
|
|
20 |
|
|
|
67 |
|
|
|
21 |
|
|
|
22 |
|
|
|
23 |
|
|
|
21 |
|
|
|
87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(F) |
|
Core Net Investment Income (excl. Floating and Non-Recourse Funding) |
|
$ |
747 |
|
|
$ |
752 |
|
|
$ |
737 |
|
|
$ |
2,236 |
|
|
$ |
748 |
|
|
$ |
758 |
|
|
$ |
750 |
|
|
$ |
749 |
|
|
$ |
3,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D) / (A) |
|
Reported Yield |
|
|
4.46 |
% |
|
|
4.52 |
% |
|
|
4.47 |
% |
|
|
4.49 |
% |
|
|
4.59 |
% |
|
|
4.50 |
% |
|
|
4.61 |
% |
|
|
4.55 |
% |
|
|
4.56 |
% |
(E) / (B) |
|
Core Yield |
|
|
4.39 |
% |
|
|
4.45 |
% |
|
|
4.34 |
% |
|
|
4.40 |
% |
|
|
4.45 |
% |
|
|
4.53 |
% |
|
|
4.51 |
% |
|
|
4.53 |
% |
|
|
4.50 |
% |
(F) / (C) |
|
Core Yield (excl. Floating and Non-Recourse Funding) |
|
|
4.49 |
% |
|
|
4.53 |
% |
|
|
4.47 |
% |
|
|
4.50 |
% |
|
|
4.58 |
% |
|
|
4.67 |
% |
|
|
4.67 |
% |
|
|
4.70 |
% |
|
|
4.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 companys life insurance business.
|
(3) |
Includes cost basis adjustments on structured securities and various other immaterial items. |
62
Corporate Information
63
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2015
Financial Strength Ratings As Of October 28, 2015
|
|
|
|
|
|
|
Company |
|
Standard & Poors Financial
Services LLC (S&P) |
|
Moodys Investors
Service, Inc. (Moodys) |
|
A.M. Best
Company, Inc. (A.M. Best) |
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 Seguros de Credito a la Vivienda S.A. de C.V.(3) |
|
Not rated |
|
Aa3.mx |
|
Not rated |
Genworth Mortgage Insurance Corporation |
|
BB+ |
|
Ba1 |
|
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- |
Financial Assurance Company Limited |
|
A- |
|
Not rated |
|
Not rated |
Financial Insurance Company Limited |
|
A- |
|
Not rated |
|
Not rated |
The S&P, Moodys, 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 companys 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+,
A-, BBB-, BB+ and BB- ratings are the fifth-, seventh-, tenth-, eleventh- and thirteenth-highest of S&Ps 21 ratings categories.
Moodys 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 Moodys, 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 Moodys 21 ratings categories. Issuers or issues rated Aa.mx demonstrate very strong creditworthiness relative to other issuers in Mexico.
A.M. Best states that the A- (Excellent) rating is assigned to those companies that have, in its opinion, an excellent ability to meet their ongoing
insurance obligations. The A- (Excellent) rating is the 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 Fitchs 21 ratings categories.
S&P, Moodys, A.M. Best, DBRS and Fitch 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. |
(3) |
Genworth Seguros de Credito a la Vivienda S.A. de C.V. is also rated Baa3 by Moodys on a Global Scale Insurance financial strength basis. |
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