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
February 4, 2016
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
(Registrant’s 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):
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
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 February 4, 2016, Genworth Financial,
Inc. issued (1) a press release announcing its financial results for the quarter ended December 31, 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 December 31, 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 February 4, 2016. |
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| 99.2 |
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Financial Supplement for the quarter ended December 31, 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: February 4, 2016 |
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By: |
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/s/ Kelly L. Groh |
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Kelly L. Groh Executive Vice President and
Chief Financial Officer (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 February 4, 2016. |
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| 99.2 |
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Financial Supplement for the quarter ended December 31, 2015. |
4
Exhibit 99.1
Genworth Financial Announces Fourth Quarter 2015 Results
Net Operating Loss Of $0.17 Per Share And Net Loss Per Share Of $0.59 Driven By Annual Assumption Updates In Life Insurance; Loss On Sale From
Previously Announced Business Divestitures Also Impacted Net Loss
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• |
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GAAP Annual Assumption Review Complete |
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• |
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Long Term Care Insurance (LTC) Active Life GAAP Margin Of Approximately $2.5 To $3.0 Billion; Statutory Margin Testing Underway And Subject To Regulatory Discussion |
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Universal Life1 After-Tax Charges Of $194 Million Reflecting Updates To Persistency, Long Term Interest Rates, Mortality And Other Refinements |
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• |
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Net Loss & Net Operating Loss Include Aggregate Unfavorable Items In Universal Life Of $0.39 Per Diluted Share And Net Favorable Items In LTC Of $0.02 Per Diluted Share |
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• |
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Continued Solid Loss Ratio Performance In U.S., Canada & Australia Mortgage Insurance Businesses |
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• |
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Maintained Strong Capital Positions & Solid Holding Company Liquidity |
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• |
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Initiating U.S. Life Restructuring Plan To Separate And Isolate LTC And Suspend Sales Of Traditional Life And Fixed Annuity Products |
Richmond, VA (February 4, 2016) – Genworth Financial, Inc. (NYSE: GNW) today reported results for the period ended December 31, 2015. The company
reported a net loss2 of $292 million, or $0.59 per diluted share, compared with a net loss of $760 million, or $1.53 per diluted share, in the fourth quarter of 2014. Net operating loss3 for the fourth quarter of 2015 was $82 million, or $0.17 per diluted share, compared with a net operating loss of $415 million, or $0.83 per diluted share, in the fourth quarter of 2014. The net loss
and net operating loss in the quarter include net after-tax charges of $184 million, or $0.37 per diluted share, primarily driven by assumption updates in universal life insurance. Additionally, the net loss includes an after-tax loss of $134
million related to the pending sale of the European mortgage insurance business and an additional after-tax loss of $73 million related to the completed lifestyle protection insurance business sale.
The company reported a net loss of $615 million, or $1.24 per diluted share, in 2015, compared with a net loss of $1,244 million, or $2.51 per diluted share,
in 2014. The company reported net operating income of $255 million, or $0.51 per diluted share, in 2015, compared with a net operating loss of $398 million, or $0.80 per diluted share, in 2014.
“We are pleased with the continued strong performance of our mortgage insurance businesses,” said Tom McInerney, President and CEO. “In our
U.S. life insurance businesses, we are actively pursuing multiple restructuring actions to separate and isolate our LTC business and narrow our commercial focus, including through the suspension of traditional life and fixed annuity sales.”
| 1 |
Includes both universal life and term universal life insurance. |
| 2 |
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 Genworth’s
common stockholders, net loss available to Genworth’s common stockholders per share, book value available to Genworth’s common stockholders, book value available to Genworth’s common stockholders per share and stockholders’
equity available to Genworth’s common stockholders, respectively. |
| 3 |
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
Strategic Update
In 2016, the company plans to initiate a series of internal restructuring actions aimed at separating and isolating its LTC business, subject to regulatory and
other potential third-party approvals. These actions are focused on addressing LTC legacy block issues that continue to pressure ratings across the organization.
Also, the company has decided to suspend all sales of traditional life insurance and fixed annuity products in the first quarter of 2016 given the continued
impact of ratings and recent sales levels of these products. This action is expected to reduce cash expenses by approximately $50 million pre-tax annually and the company expects to record an approximately $15 million pre-tax restructuring charge in
the first quarter of 2016 related to this decision. In addition, and as previously announced, the company still expects to achieve annualized cash expense reductions of $100 million pre-tax or more. Actions taken in 2015 are expected to reduce cash
expenses by approximately $90 to $100 million pre-tax on an annualized basis, bringing total expected cash expense reductions to $150 million or more.
As
of December 31, 2015, the U.S. mortgage insurance (MI) business was compliant with the private mortgage insurer eligibility requirements (PMIERs) capital requirements, with a prudent buffer. The company generated a total of approximately $535
million in PMIERs capital credit in 2015 from three reinsurance transactions approved by the government-sponsored enterprises (GSEs) covering the 2009 through 2015 books of business as well as the intercompany sale of its ownership of affiliated
preferred securities for approximately $200 million. With regard to the executed reinsurance transactions, the GSEs reserve the right to reassess the PMIERs capital credit on those transactions if certain conditions are not met, including if the
statutory risk-to-capital ratio of the business exceeds 18:1. The company intends to maintain a prudent level of capital in excess of the PMIERs capital requirements.
In January 2016, the company completed the sale of certain blocks of term life insurance to Protective Life Insurance Company. The company expects this
transaction to generate capital of approximately $100 to $150 million in aggregate to Genworth, which includes an expected tax payment of over $200 million to the holding company that is scheduled to be settled in July 2016, partially offset by a
decrease in the unassigned surplus of the U.S. life insurance companies.
In December 2015, the company completed the sale of its lifestyle protection
insurance business to AXA with estimated net proceeds of approximately $400 million, subject to post-closing adjustments. In January 2016, the company redeemed its senior notes due in 2016 using $321 million of proceeds from this transaction.
2
During the fourth quarter, 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 $55 million to the U.S. MI business. The transaction is expected to close in the first quarter of 2016 and is subject to customary
conditions, including requisite regulatory approvals.
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| Consolidated Net Loss & Net Operating Income (Loss) |
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Three months ended December 31
(Unaudited) |
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Twelve months ended December 31
(Unaudited) |
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2015 |
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2014 |
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2015 |
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2014 |
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(Amounts in millions, except per
share) |
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Total |
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Per
diluted
share |
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Total |
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Per
diluted
share |
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Total
% change |
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Total |
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Per
diluted
share |
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Total |
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Per
diluted
share |
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Total
% change |
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| Net loss available to Genworth’s common stockholders |
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$ |
(292 |
) |
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$ |
(0.59 |
) |
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$ |
(760 |
) |
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$ |
(1.53 |
) |
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62 |
% |
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$ |
(615 |
) |
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$ |
(1.24 |
) |
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$ |
(1,244 |
) |
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$ |
(2.51 |
) |
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51 |
% |
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| Net operating income (loss) |
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$ |
(82 |
) |
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$ |
(0.17 |
) |
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$ |
(415 |
) |
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$ |
(0.83 |
) |
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80 |
% |
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$ |
255 |
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$ |
0.51 |
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$ |
(398 |
) |
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$ |
(0.80 |
) |
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164 |
% |
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| Weighted average diluted shares4 |
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497.6 |
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496.7 |
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497.4 |
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496.4 |
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Three months ended December 31
(Unaudited) |
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2015 |
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2014 |
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| Book value per share |
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$25.76 |
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$30.04 |
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| Book value per share, excluding accumulated other comprehensive income (loss) |
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$19.71 |
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$21.09 |
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In the fourth quarter of 2015, the company changed how it reviews its operating businesses and no longer has separate
reporting divisions. Under this new structure, the company has the following five operating business segments: U.S. Mortgage Insurance; Canada Mortgage Insurance; Australia Mortgage Insurance; U.S. Life Insurance (which includes its LTC, life
insurance and fixed annuities businesses); and Runoff (which includes the results of non-strategic products which are no longer actively sold). In addition to the five operating business segments, the company also has Corporate and Other activities
which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of the
operating segments, including certain smaller international mortgage insurance businesses and discontinued operations. Financial information has been updated for all periods to reflect the reorganized segment reporting structure.
| 4 |
Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss
from continuing operations, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share as the inclusion of shares for stock options, restricted stock units and stock appreciation
rights of 1.4 million, 1.3 million and 3.2 million, respectively, for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014 and 1.6 million and 5.6 million, respectively, for
the twelve months ended December 31, 2015 and 2014 would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations in these periods, dilutive potential weighted-average common shares
outstanding would have been 499.0 million, 498.7 million and 499.9 million, respectively, for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014 and 499.0 million and
502.0 million, respectively, for the twelve months ended December 31, 2015 and 2014. Since it had net operating income for the three months ended September 30, 2015 and the twelve months ended December 31, 2015, the company used
498.7 million and 499.0 million, respectively, diluted weighted-average common shares outstanding in the calculation of diluted net operating income per common share. |
3
Net investment losses, net of taxes and other adjustments, were zero in the quarter, compared to $22 million in
the prior quarter and $4 million in the prior year. Total impairments, net of tax, were $9 million in the quarter, compared to $6 million in the prior quarter and none in the prior year.
Net investment income decreased to $781 million in the quarter, compared to $783 million in the prior quarter and $797 million in the prior year primarily
from unfavorable foreign exchange and the continued impact from the low interest rate environment. The reported yield for the current quarter was 4.45 percent. The core yield3 was 4.35 percent,
down from the prior quarter.
Net operating income (loss) results are summarized in the table below:
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| Net Operating Income (Loss)
(Amounts in millions) |
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Q4 15 |
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Q3 15 |
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Q4 14 |
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| U.S. Mortgage Insurance |
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$ |
41 |
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$ |
37 |
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$ |
21 |
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| Canada Mortgage Insurance |
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37 |
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38 |
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36 |
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| Australia Mortgage Insurance |
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22 |
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21 |
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33 |
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| U.S. Life Insurance |
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(135 |
) |
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40 |
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(482 |
) |
| Runoff |
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11 |
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(4 |
) |
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16 |
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| Corporate and Other |
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(58 |
) |
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(68 |
) |
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(39 |
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| Total Net Operating Income (Loss) |
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$ |
(82 |
) |
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$ |
64 |
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$ |
(415 |
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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.
Unless
specifically noted in the discussion of results for mortgage insurance businesses in Canada and Australia, 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 fourth quarter of 2015 was an unfavorable $8 million and $6 million versus the
prior year in the mortgage insurance businesses in Canada and Australia, respectively.
U.S. Mortgage Insurance
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| Operating Metrics
(Dollar amounts in millions) |
|
Q4 15 |
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Q3 15 |
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Q4 14 |
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| Net operating income |
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$ |
41 |
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$ |
37 |
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$ |
21 |
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| New insurance written |
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| Primary flow |
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$ |
7,800 |
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$ |
9,300 |
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$ |
6,900 |
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| Loss ratio |
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39 |
% |
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43 |
% |
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|
61 |
% |
4
U.S. MI net operating income was $41 million, compared with $37 million in the prior quarter and $21 million in
the prior year. The loss ratio in the current quarter was 39 percent, down four points sequentially from a slight decrease in new delinquencies, continued growth in insurance in force resulting in higher earned premiums and the impact of prior
period cancellations. The loss ratio was down 22 points from the prior year reflecting the continued decline in delinquencies from the 2005 to 2008 book years.
Flow new insurance written (NIW) of $7.8 billion decreased 16 percent from the prior quarter from a seasonally smaller purchase originations market but
increased 13 percent versus the prior year primarily from a larger purchase originations market. During the fourth quarter, the company’s concentration of single premium lender paid NIW was in line with the prior quarter as it continues its
selective participation in this market. Future volumes of this product will vary in part depending on the company’s evaluation of the risk return profile of these transactions. The business’s insurance in force grew approximately seven
percent during 2015 driven by an expanding purchase originations market, increased market share and its differentiated service offerings.
Canada
Mortgage Insurance
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| Operating Metrics
(Dollar amounts in millions) |
|
Q4 15 |
|
|
Q3 15 |
|
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Q4 14 |
|
| Net operating income |
|
$ |
37 |
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$ |
38 |
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$ |
36 |
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| New insurance written |
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| Flow |
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$ |
4,700 |
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$ |
6,600 |
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$ |
5,500 |
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| Bulk |
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$ |
7,300 |
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$ |
4,800 |
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$ |
2,300 |
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| Loss ratio |
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23 |
% |
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21 |
% |
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26 |
% |
Canada reported net operating income of $37 million versus $38 million in the prior quarter and $36 million in the prior year.
The loss ratio in the quarter was 23 percent, up two points from the prior quarter driven by a seasonal increase in new delinquencies, net of cures, primarily from Alberta and Quebec and down three points compared to the prior year. Results included
unfavorable foreign exchange of $8 million and lower expenses versus the prior year. Flow NIW was down 26 percent5 sequentially from a seasonally smaller originations market and was flat5 year over year. In addition, the company completed several bulk transactions in the quarter of approximately $7.3 billion, consisting of low loan-to-value prime loans, given strong lender demand.
Australia Mortgage Insurance
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| Operating Metrics
(Dollar amounts in millions) |
|
Q4 15 |
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|
Q3 15 |
|
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Q4 14 |
|
| Net operating income |
|
$ |
22 |
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$ |
21 |
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$ |
33 |
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| New insurance written |
|
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| Flow |
|
$ |
4,600 |
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$ |
6,300 |
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$ |
8,000 |
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| Bulk |
|
$ |
— |
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$ |
— |
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$ |
100 |
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| Loss ratio |
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17 |
% |
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|
29 |
% |
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|
15 |
% |
| 5 |
Percent change excludes the impact of foreign exchange. |
5
Australia reported net operating income of $22 million versus $21 million in the prior quarter and $33 million in
the prior year. The loss ratio in the quarter was 17 percent, down 12 points sequentially and up two points from the prior year. Results in the prior quarter included actuarial updates that had a negligible impact on earnings, but did unfavorably
impact the third quarter loss ratio by approximately seven points. New delinquencies were down 14 percent sequentially and cures were down seven percent sequentially from normal seasonal variation, including improved performance in Queensland and
stable performance in Western Australia. Results versus the prior year were also impacted by an unfavorable $9 million related to the company’s further sell down of approximately 14 percent of its ownership in the Australia business in May 2015
and unfavorable foreign exchange of $6 million. Flow NIW was down 24 percent5 sequentially and down 30 percent5 year over year from a smaller
high loan-to-value originations market primarily driven by regulatory focus on the market and tightened lender risk appetite.
U.S. Life Insurance
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| Operating Metrics
(Amounts in millions) |
|
Q4 15 |
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Q3 15 |
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Q4 14 |
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| Net operating income (loss) |
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| Long Term Care Insurance |
|
$ |
19 |
|
|
$ |
(10 |
) |
|
$ |
(506 |
) |
| Life Insurance |
|
|
(173 |
) |
|
|
31 |
|
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|
1 |
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| Fixed Annuities |
|
|
19 |
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|
19 |
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|
23 |
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| Total U.S. Life Insurance |
|
$ |
(135 |
) |
|
$ |
40 |
|
|
$ |
(482 |
) |
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| Sales |
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| Long Term Care Insurance |
|
|
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|
|
|
|
|
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| Individual |
|
$ |
8 |
|
|
$ |
7 |
|
|
$ |
17 |
|
| Group |
|
|
2 |
|
|
|
1 |
|
|
|
6 |
|
| Life Insurance |
|
|
|
|
|
|
|
|
|
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| Term Life |
|
|
6 |
|
|
|
7 |
|
|
|
11 |
|
| Universal Life |
|
|
3 |
|
|
|
2 |
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|
|
7 |
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| Linked Benefits |
|
|
1 |
|
|
|
3 |
|
|
|
5 |
|
| Fixed Annuities |
|
|
314 |
|
|
|
260 |
|
|
|
495 |
|
Long Term Care Insurance
LTC had net operating income of $19 million, compared with a net operating loss of $10 million in the prior quarter and a net operating loss of $506 million in
the prior year.
During the quarter, the company completed its annual review of GAAP active life margins or loss recognition testing. GAAP loss
recognition testing margins for the business written since late 1995 were approximately $2.5 to $3.0 billion as higher expected future claim costs were more than offset by the impact of future in force rate actions. The company continues to
separately test its acquired LTC blocks (representing business written prior to late 1995) for recoverability as part of testing its GAAP loss recognition margins. The GAAP loss recognition testing margin for the acquired block was slightly positive
and did not require an increase to reserves in the quarter. Results in the quarter also reflected $10 million of after-tax favorable items, due largely to assumption updates to loss adjustment expenses impacting claim reserves, partially offset by
corrections primarily related to reinsurance. Results in the prior quarter included net unfavorable items of $21 million after-tax while results in the prior year included $494 million after-tax of unfavorable items.
6
Existing claims results were unfavorable versus the prior quarter from lower terminations, but favorable versus
the prior year from higher terminations. Additionally, results from new claims were unfavorable versus the prior year from an increase in new claim counts and higher severity given the mix of new claims with a higher average reserve. Results in the
current quarter also reflected less favorable experience from policies not on claim primarily related to the acquired block of policies. The loss ratio in the current quarter was approximately 73 percent.
Results for the quarter included a favorable impact from higher premiums and reduced benefit options of $38 million after-tax versus the prior quarter and $55
million after-tax versus the prior year related to premium increases from in force rate actions approved and implemented to date. Results in the quarter also reflected a $4 million after-tax increase to reserves associated with profits followed by
losses on business written since late 1995. Individual LTC sales of $8 million were higher than the prior quarter, but lower than the prior year.
Life Insurance
Life insurance had a net operating
loss of $173 million, compared with net operating income of $31 million in the prior quarter and net operating income of $1 million in the prior year. During the quarter, the company completed its annual review of life assumptions and recorded an
after-tax charge of $194 million associated with its universal life insurance products, including $36 million of corrections related to reinsurance inputs. The charge reduced the total life insurance products’ deferred acquisition cost (DAC)
and other intangible assets by four percent and increased reserves by two percent versus the prior year reflecting updated assumptions for persistency, long term interest rates, mortality and other refinements. In addition to these initial charges,
the assumption changes resulted in an unfavorable $4 million after-tax impact in the fourth quarter, as compared to prior periods, and are also expected to increase future reserve growth and DAC amortization in similar amounts. Results in the prior
year reflected a $32 million unfavorable item. Sales of $10 million decreased compared to the prior quarter and the prior year.
Fixed Annuities
Fixed annuities net operating income was $19 million, compared with $19 million in the prior quarter and $23 million in the prior year. Results in
the quarter reflect unfavorable impacts from mortality and lower bond call income versus the prior year. Sales in the quarter totaled $314 million, up sequentially and down versus the prior year.
7
Runoff
Runoff net operating income was $11 million, compared with a net operating loss of $4 million in the prior quarter and net operating income of $16 million in
the prior year reflecting favorable equity market performance versus both the prior quarter and prior year, but less favorable taxes versus the prior year.
Corporate And Other
Corporate and Other net
operating loss was $58 million, compared with $68 million in the prior quarter and $39 million in the prior year. Results in the prior quarter included legal accruals and expenses of $17 million after-tax. Results versus the prior quarter and prior
year reflected less favorable taxes.
Capital & Liquidity
Genworth maintains solid capital positions in its operating subsidiaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
| Key Capital & Liquidity Metrics
(Dollar amounts in millions) |
|
Q4 15 |
|
|
Q3 15 |
|
|
Q4 14 |
|
| U.S. MI |
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated Risk-To-Capital Ratio6 |
|
|
16.3:1 |
|
|
|
14.3:1 |
|
|
|
14.5:1 |
|
| Genworth Mortgage Insurance Corporation Risk-To-Capital Ratio6 |
|
|
16.4:1 |
|
|
|
14.3:1 |
|
|
|
14.3:1 |
|
| Canada MI |
|
|
|
|
|
|
|
|
|
|
|
|
| Minimum Capital Test (MCT) Ratio6 |
|
|
233 |
% |
|
|
228 |
% |
|
|
225 |
% |
| Australia MI |
|
|
|
|
|
|
|
|
|
|
|
|
| Prescribed Capital Amount (PCA) Ratio6 |
|
|
159 |
% |
|
|
167 |
% |
|
|
159 |
% |
| U.S. Life Companies |
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated Risk-Based Capital (RBC) Ratio6 |
|
|
430 |
% |
|
|
444 |
% |
|
|
438 |
% |
| Unassigned Surplus6 |
|
$ |
(70 |
) |
|
$ |
75 |
|
|
$ |
155 |
|
| Holding Company Cash7 and Liquid Assets8 |
|
$ |
1,374 |
|
|
$ |
983 |
|
|
$ |
1,103 |
|
Key Points
| |
• |
|
$117 million of dividends and payments from the operating subsidiaries were paid to the holding company during the fourth quarter, including $55 million from the buyback of Australia mortgage insurance business shares.
In addition, the holding company received $325 million of proceeds related to the sale of the lifestyle protection insurance business in December 2015 and anticipates to receive approximately $50 million during 2016; |
| |
• |
|
U.S. MI risk-to-capital increased in the quarter as Genworth Mortgage Insurance Corporation eliminated all outstanding intercompany surplus notes reducing the concentration of affiliate assets with no PMIERs impact;
|
| |
• |
|
U.S. MI business was compliant with the PMIERs capital requirements with a buffer as of December 31, 2015; |
| |
• |
|
Unassigned surplus and RBC ratio declined versus the prior quarter in part from updates to assumptions for mortality, utilization and other refinements related to the company’s annual review of assumptions in
variable annuity products; |
| 6 |
Company estimate for the fourth quarter of 2015, due to timing of the filing of statutory statements. |
| 7 |
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. |
| 8 |
Comprises cash and cash equivalents of $1,124 million, $733 million and $953 million, respectively, and U.S. government bonds of $250 million, $250 million and $150 million, respectively, as of December 31,
2015, September 30, 2015 and December 31, 2014. |
8
| |
• |
|
In January 2016, Genworth Holdings completed the redemption of its senior notes due in 2016 for $321 million using proceeds from the sale of the lifestyle protection insurance business; |
| |
• |
|
The holding company ended the fourth quarter with approximately $1.4 billion of cash and liquid assets, representing a buffer of $907 million in excess of one and a half times annual debt service and restricted cash.
When adjusting for the cash used for the January 2016 redemption of the senior notes due in 2016, the buffer would have been $586 million; and |
| |
• |
|
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. |
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. 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, Genworth’s 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 fourth quarter 2015 financial supplement are now posted on the company’s website. Additional information regarding
business results and strategic update will be posted on the company’s website, http://investor.genworth.com, by 7:30 a.m. on February 5, 2016. Investors are encouraged to review these materials.
Genworth will conduct a conference call on February 5, 2016 at 8:00 a.m. (ET) to discuss business results, its annual assumption reviews and margin
testing, and provide a progress 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 #
858342. 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.
9
Replays of the call will be available through February 19, 2016 at 888 203.1112 or 719 457.0820 (outside the
U.S.); conference ID # 858342. The webcast will also be archived on the company’s website.
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 company’s segments and Corporate and Other activities. A component of the
company’s net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to
the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains
(losses) on insurance block transactions and restructuring costs are also excluded from net operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating
items are also excluded from net operating income (loss) if, in the company’s opinion, they are not indicative of overall operating trends.
While
some of these items may be significant components of net income (loss) available to Genworth’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’s common stockholders or net income (loss) available to Genworth’s common stockholders per common share on a basic and diluted basis determined in accordance with GAAP. In addition, the company’s
definition of net operating income (loss) may differ from the definitions used by other companies.
In the fourth quarter of 2014, the company recorded
goodwill impairments of $129 million, net of taxes, in the long term care insurance business and $145 million, net of taxes, in the life insurance business. In the third quarter of 2014, the company recorded goodwill impairments of $167 million, net
of taxes, in the long term care insurance business and $350 million, net of taxes, in the life insurance business.
The company recognized an estimated
loss of $134 million, net of taxes, in the fourth quarter of 2015 for the planned sale of the mortgage insurance business in Europe, as well as a tax charge of $7 million in the third quarter of 2015 from potential business portfolio changes related
to this business resulting in a total estimated loss on sale of $141 million in 2015.
In the third quarter of 2015, the company paid an early redemption
payment of approximately $1 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth Financial Mortgage Insurance Pty Limited’s notes
10
that were scheduled to mature in 2021. In the third quarter of 2015, the company also repurchased approximately $50 million principal amount of Genworth Holdings, Inc.’s notes with various
maturity dates for a loss of $1 million, net of taxes. In the second quarter of 2014, the company paid an early redemption payment of approximately $2 million, net of taxes and portion attributable to noncontrolling interests, related to the early
redemption of Genworth MI Canada Inc.’s notes that were scheduled to mature in 2015. These transactions were excluded from net operating income (loss) for the periods presented as they related to a loss on the early extinguishment of debt.
In the third quarter of 2015, the company recorded a DAC impairment of $296 million, net of taxes, on certain term life insurance policies in connection with
entering into an agreement to complete a life block transaction.
In the fourth and second quarters of 2015, the company recorded an after-tax expense of
$3 million and $2 million, respectively, related to restructuring costs as part of an expense reduction plan as the company evaluates and appropriately sizes its organizational needs and expenses.
There were no infrequent or unusual items excluded from net operating income (loss) during the periods presented other than the following items. There was a
$205 million net tax impact in the fourth quarter of 2014 from potential business portfolio changes. The company recognized a tax charge of $174 million in the fourth quarter of 2014 associated with the Australian mortgage insurance business as the
company can no longer assert its intent to permanently reinvest earnings in that business. In connection with the company’s plans to sell the lifestyle protection insurance business, the company made a change to the permanent reinvestment
assertion on one of its legal entities recognizing tax expense of $31 million in the fourth quarter of 2014.
The 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 company’s segments and Corporate and Other activities to net loss
available to Genworth’s common stockholders for the three and twelve months ended December 31, 2015 and 2014, as well as for the three months ended September 30, 2015.
Adjustments to reconcile net income (loss) attributable to Genworth’s 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 company’s 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.
11
The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates
which are subject to review and could change from year to year. Prior year amounts have not been re-presented to reflect this revised presentation and are, therefore, not comparable to the current year provision for income taxes by segment. However,
the company does not believe that the previous methodology would have resulted in a materially different segment-level provision for income taxes.
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 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 company’s operating performance because they represent a measure of new sales of insurance policies or contracts during a specified period, rather than a measure of the company’s revenues or profitability during that period.
Management regularly monitors and reports insurance in force and risk in force. Insurance in force for the mortgage insurance businesses is a measure of
the aggregate face value of outstanding insurance policies as of the respective reporting date. For risk in force in the mortgage insurance businesses, the company has computed an “effective” risk in force amount, which recognizes that the
loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Risk in force for the U.S. mortgage insurance business is the obligation that is limited under contractual terms to the amounts less than 100 percent
of the mortgage loan value. 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
company’s businesses in Canada and Australia. In Australia, the company has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100 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. The company considers insurance in force and risk in force to be measures of the company’s operating performance because they represent measures of
the size of the business at a specific date which will generate revenues and profits in a future period, rather than measures of the company’s revenues or profitability during that period.
Management also regularly monitors and reports a loss ratio for the company’s businesses. For the mortgage insurance businesses, the loss ratio is the
ratio of incurred losses and loss adjustment expenses to net earned premiums. For the long term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment
expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.
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.
12
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 company’s future business and financial performance. Forward-looking statements are based on management’s 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 company’s businesses, including: (i) inability to successfully execute strategic plans to effectively
address the company’s 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 company’s European
mortgage insurance business at all or on the terms anticipated and failure to attract buyers for any other businesses or other assets the 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 company’s 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 obtain the necessary regulatory approvals and/or third party consents to execute on the company’s internal restructuring initiatives to separate and isolate its long term care
insurance business; (iii) inability to achieve the anticipated or expected results from the company’s internal restructuring initiatives; (iv) inability to increase the capital needed in the company’s 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; (v) 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 company’s actual experience differing significantly from its
assumptions); (vi) ineffective or inadequate risk management in identifying, controlling or mitigating risks; weaknesses in, or ineffective, internal controls; (vii) inaccurate models to price products, calculate reserves and value assets could
have a material adverse impact on the company’s business, results of operations and financial condition; (viii) 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; (ix) inability to retain, attract and motivate qualified employees and independent sales representatives,
particularly in the light of the company’s recent business challenges; (x) adverse change in regulatory requirements, including risk-based capital; (xi) dependence on dividends and other distributions from the company’s subsidiaries
(particularly the company’s 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 company’s 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); (xii) downturns and volatility in global economies and equity and credit markets;
(xiii) interest rates and changes in rates; (xiv) availability, affordability and adequacy of reinsurance to protect the company against losses; (xv) defaults by counterparties to reinsurance arrangements or derivative instruments; (xvi) changes in
valuation of fixed maturity, equity and trading securities; (xvii) defaults or other events impacting the value of the company’s fixed maturity securities portfolio; (xviii) defaults on the company’s commercial mortgage loans or the
mortgage loans underlying its investments in commercial mortgage-backed securities and volatility in performance; (xix) competitors; (xx) reliance on, and loss of, key customer or distribution relationships; (xxi) extensive regulation of the
company’s businesses and changes in applicable laws and regulations; (xxii) litigation and regulatory investigations or other actions (including the two |
13
| |
shareholder putative class action lawsuits alleging securities law violations filed against the company in 2014, including as further described below); (xxiii) the material weakness in the
company’s internal control over financial reporting in the future; (xxiv) failure or any compromise of the security of the company’s computer systems, disaster recovery systems and business continuity plans and failures to safeguard, or
breaches of, the company’s confidential information; (xxv) occurrence of natural or man-made disasters or a pandemic; (xxvi) impact of additional regulations pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act; (xxvii)
changes in accounting and reporting standards; (xxviii) impairments of or valuation allowances against the company’s deferred tax assets; (xxix) 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); (xxx) political and economic instability or changes in government policies; and (xxxi) fluctuations in foreign currency
exchange rates and international securities markets; |
| |
• |
|
Risks relating primarily to the
company’s mortgage insurance businesses, including: (i)
deterioration in economic conditions or a decline in home prices that adversely affect the company’s loss experience in its mortgage insurance businesses; (ii) competition in the company’s mortgage insurance businesses, including from
government and government-owned and GSEs offering mortgage insurance; (iii) changes in regulations adversely affecting the mortgage insurance markets in which the company operates; (iv) inability to meet or maintain the requirements mandated by
PMIERs because the GSEs amend them or changes to the GSE’s interpretation of the financial requirements; (v) inability of U.S. mortgage insurance subsidiaries to meet minimum statutory capital requirements and hazardous financial condition
standards; (vi) 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; (vii) increases in U.S. mortgage insurance default rates; (viii) uncertainty regarding anticipated benefits from loss mitigation actions or programs in the company’s mortgage insurance
businesses; (ix) competition with GSEs may put the company at a disadvantage on pricing and other terms and conditions; (x) decreases in the volume of high loan-to-value mortgage originations or increases in mortgage insurance cancellations; (xi)
increases in the use of alternatives to private mortgage insurance and reductions in the level of coverage selected; and (xii) potential liabilities in connection with the company’s U.S. contract underwriting services; |
| |
• |
|
Risks relating primarily to the
company’s long term care insurance, life
insurance and annuities businesses,
including: (i) the company’s 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 company’s margin reviews in the fourth quarters of 2014 and 2015) 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 company’s inability to reflect future premium increases and
other management actions in its margin calculation as anticipated; (ii) unanticipated adverse events or actions in connection with the suspension of sales of the company’s life insurance and fixed annuity products; (iii) failure to sufficiently
increase demand for the company’s long term care insurance; (iv) adverse impact on the company’s financial results as a result of projected profits followed by projected losses (as is currently the case with the company’s long term
care insurance business); (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
company’s 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 company’s
common stock, including: (i) the continued suspension of payment of dividends; and (ii) stock price
fluctuations. |
14
With respect to risks relating to the previously-disclosed litigation In re Genworth Financial, Inc.
Securities Litigations, the court has scheduled a trial to begin on May 9, 2016, and the parties are currently engaging in a mediation process. The plaintiffs have recently taken the position that the class is entitled to recover per share
and per bond amounts that, if the plaintiffs were to prevail, would, in the aggregate, be material. There can be no assurance that the mediation will result in a settlement and, if it does not, the company intends to continue to vigorously defend
the lawsuit. The company cannot determine or predict the ultimate outcome of this litigation or provide an estimate or range of reasonably possible losses arising from this litigation. Nevertheless, the company believes that it is reasonably
possible it will incur additional losses in resolving this litigation beyond the amounts already accrued and, if so, that it is reasonably possible the amount of such losses would be material.
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 |
15
Condensed Consolidated Statements of Income
(Amounts in millions, except per share amounts)
|
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Three months ended
December 31, |
|
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Twelve months ended
December 31, |
|
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2015 |
|
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2014 |
|
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2015 |
|
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2014 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
1,157 |
|
|
$ |
1,214 |
|
|
$ |
4,579 |
|
|
$ |
4,700 |
|
| Net investment income |
|
|
781 |
|
|
|
797 |
|
|
|
3,138 |
|
|
|
3,142 |
|
| Net investment gains (losses) |
|
|
(16 |
) |
|
|
(11 |
) |
|
|
(75 |
) |
|
|
(22 |
) |
| Policy fees and other income |
|
|
234 |
|
|
|
229 |
|
|
|
906 |
|
|
|
909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
2,156 |
|
|
|
2,229 |
|
|
|
8,548 |
|
|
|
8,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
1,435 |
|
|
|
2,136 |
|
|
|
5,149 |
|
|
|
6,418 |
|
| Interest credited |
|
|
180 |
|
|
|
185 |
|
|
|
720 |
|
|
|
737 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
433 |
|
|
|
299 |
|
|
|
1,309 |
|
|
|
1,138 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
207 |
|
|
|
128 |
|
|
|
966 |
|
|
|
453 |
|
| Goodwill impairment |
|
|
— |
|
|
|
299 |
|
|
|
— |
|
|
|
849 |
|
| Interest expense |
|
|
104 |
|
|
|
106 |
|
|
|
419 |
|
|
|
433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
2,359 |
|
|
|
3,153 |
|
|
|
8,563 |
|
|
|
10,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from continuing operations before income taxes |
|
|
(203 |
) |
|
|
(924 |
) |
|
|
(15 |
) |
|
|
(1,299 |
) |
| Benefit for income taxes |
|
|
(36 |
) |
|
|
(78 |
) |
|
|
(9 |
) |
|
|
(94 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from continuing operations |
|
|
(167 |
) |
|
|
(846 |
) |
|
|
(6 |
) |
|
|
(1,205 |
) |
| Income (loss) from discontinued operations, net of taxes |
|
|
(73 |
) |
|
|
138 |
|
|
|
(407 |
) |
|
|
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(240 |
) |
|
|
(708 |
) |
|
|
(413 |
) |
|
|
(1,048 |
) |
| Less: net income attributable to noncontrolling interests |
|
|
52 |
|
|
|
52 |
|
|
|
202 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss available to Genworth Financial, Inc.’s common stockholders |
|
$ |
(292 |
) |
|
$ |
(760 |
) |
|
$ |
(615 |
) |
|
$ |
(1,244 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.44 |
) |
|
$ |
(1.81 |
) |
|
$ |
(0.42 |
) |
|
$ |
(2.82 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
$ |
(0.44 |
) |
|
$ |
(1.81 |
) |
|
$ |
(0.42 |
) |
|
$ |
(2.82 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss available to Genworth Financial, Inc.’s common stockholders per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.59 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.24 |
) |
|
$ |
(2.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
$ |
(0.59 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.24 |
) |
|
$ |
(2.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
497.6 |
|
|
|
496.7 |
|
|
|
497.4 |
|
|
|
496.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted4 |
|
|
497.6 |
|
|
|
496.7 |
|
|
|
497.4 |
|
|
|
496.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
Reconciliation of Net Operating Income (Loss) to Net Loss
(Amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three
months ended
December 31, |
|
|
Twelve
months ended
December 31, |
|
|
Three
months ended
September 30,
2015 |
|
| |
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
| Net operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Mortgage Insurance segment |
|
$ |
41 |
|
|
$ |
21 |
|
|
$ |
179 |
|
|
$ |
91 |
|
|
$ |
37 |
|
| Canada Mortgage Insurance segment |
|
|
37 |
|
|
|
36 |
|
|
|
152 |
|
|
|
170 |
|
|
|
38 |
|
| Australia Mortgage Insurance segment |
|
|
22 |
|
|
|
33 |
|
|
|
102 |
|
|
|
200 |
|
|
|
21 |
|
| U.S. Life Insurance segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long Term Care Insurance |
|
|
19 |
|
|
|
(506 |
) |
|
|
29 |
|
|
|
(815 |
) |
|
|
(10 |
) |
| Life Insurance |
|
|
(173 |
) |
|
|
1 |
|
|
|
(80 |
) |
|
|
74 |
|
|
|
31 |
|
| Fixed Annuities |
|
|
19 |
|
|
|
23 |
|
|
|
94 |
|
|
|
100 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total U.S. Life Insurance segment |
|
|
(135 |
) |
|
|
(482 |
) |
|
|
43 |
|
|
|
(641 |
) |
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Runoff segment |
|
|
11 |
|
|
|
16 |
|
|
|
27 |
|
|
|
48 |
|
|
|
(4 |
) |
| Corporate and Other |
|
|
(58 |
) |
|
|
(39 |
) |
|
|
(248 |
) |
|
|
(266 |
) |
|
|
(68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net operating income (loss) |
|
|
(82 |
) |
|
|
(415 |
) |
|
|
255 |
|
|
|
(398 |
) |
|
|
64 |
|
| Adjustments to net operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment gains (losses), net (see below for reconciliation) |
|
|
— |
|
|
|
(4 |
) |
|
|
(19 |
) |
|
|
(5 |
) |
|
|
(22 |
) |
| Goodwill impairment, net |
|
|
— |
|
|
|
(274 |
) |
|
|
— |
|
|
|
(791 |
) |
|
|
— |
|
| Gains (losses) on sale of businesses, net |
|
|
(134 |
) |
|
|
— |
|
|
|
(141 |
) |
|
|
— |
|
|
|
(7 |
) |
| Gains (losses) on early extinguishment of debt, net |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
| Gains (losses) from life block transactions, net |
|
|
— |
|
|
|
— |
|
|
|
(296 |
) |
|
|
— |
|
|
|
(296 |
) |
| Expenses related to restructuring, net |
|
|
(3 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
— |
|
| Tax impact from potential business portfolio changes |
|
|
— |
|
|
|
(205 |
) |
|
|
— |
|
|
|
(205 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from continuing operations available to Genworth Financial, Inc.’s common stockholders |
|
|
(219 |
) |
|
|
(898 |
) |
|
|
(208 |
) |
|
|
(1,401 |
) |
|
|
(263 |
) |
| Net income attributable to noncontrolling interests |
|
|
52 |
|
|
|
52 |
|
|
|
202 |
|
|
|
196 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from continuing operations |
|
|
(167 |
) |
|
|
(846 |
) |
|
|
(6 |
) |
|
|
(1,205 |
) |
|
|
(217 |
) |
| Income (loss) from discontinued operations, net of taxes |
|
|
(73 |
) |
|
|
138 |
|
|
|
(407 |
) |
|
|
157 |
|
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(240 |
) |
|
|
(708 |
) |
|
|
(413 |
) |
|
|
(1,048 |
) |
|
|
(238 |
) |
| Less: net income attributable to noncontrolling interests |
|
|
52 |
|
|
|
52 |
|
|
|
202 |
|
|
|
196 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss available to Genworth Financial, Inc.’s common stockholders |
|
$ |
(292 |
) |
|
$ |
(760 |
) |
|
$ |
(615 |
) |
|
$ |
(1,244 |
) |
|
$ |
(284 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss available to Genworth Financial, Inc.’s common stockholders per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.59 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.24 |
) |
|
$ |
(2.51 |
) |
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
$ |
(0.59 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.24 |
) |
|
$ |
(2.51 |
) |
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net operating income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.17 |
) |
|
$ |
(0.83 |
) |
|
$ |
0.51 |
|
|
$ |
(0.80 |
) |
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.83 |
) |
|
$ |
0.51 |
|
|
$ |
(0.80 |
) |
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
497.6 |
|
|
|
496.7 |
|
|
|
497.4 |
|
|
|
496.4 |
|
|
|
497.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted4 |
|
|
497.6 |
|
|
|
496.7 |
|
|
|
497.4 |
|
|
|
496.4 |
|
|
|
497.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of net investment gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment gains (losses), gross |
|
$ |
(16 |
) |
|
$ |
(11 |
) |
|
$ |
(75 |
) |
|
$ |
(22 |
) |
|
$ |
(51 |
) |
| Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred acquisition costs and other intangible amortization and certain benefit reserves |
|
|
12 |
|
|
|
1 |
|
|
|
35 |
|
|
|
14 |
|
|
|
9 |
|
| Net investment gains (losses) attributable to noncontrolling interests |
|
|
3 |
|
|
|
1 |
|
|
|
9 |
|
|
|
— |
|
|
|
8 |
|
| Taxes |
|
|
1 |
|
|
|
5 |
|
|
|
12 |
|
|
|
3 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment gains (losses), net of taxes and other adjustments |
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
(19 |
) |
|
$ |
(5 |
) |
|
$ |
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
Condensed Consolidated Balance Sheets
(Amounts in millions)
|
|
|
|
|
|
|
|
|
| |
|
December 31,
2015 |
|
|
December 31,
2014 |
|
| Assets |
|
|
|
|
|
|
|
|
| Cash, cash equivalents and invested assets |
|
$ |
75,746 |
|
|
$ |
77,078 |
|
| Deferred acquisition costs |
|
|
4,398 |
|
|
|
4,852 |
|
| Intangible assets and goodwill |
|
|
357 |
|
|
|
265 |
|
| Reinsurance recoverable |
|
|
17,245 |
|
|
|
17,291 |
|
| Deferred tax and other assets |
|
|
675 |
|
|
|
479 |
|
| Separate account assets |
|
|
7,883 |
|
|
|
9,208 |
|
| Assets held for sale |
|
|
127 |
|
|
|
2,143 |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
106,431 |
|
|
$ |
111,316 |
|
|
|
|
|
|
|
|
|
|
| Liabilities and equity |
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
| Future policy benefits |
|
$ |
36,475 |
|
|
$ |
35,915 |
|
| Policyholder account balances |
|
|
26,209 |
|
|
|
26,032 |
|
| Liability for policy and contract claims |
|
|
8,095 |
|
|
|
7,881 |
|
| Unearned premiums |
|
|
3,308 |
|
|
|
3,485 |
|
| Deferred tax and other liabilities |
|
|
3,028 |
|
|
|
4,092 |
|
| Borrowings related to securitization entities |
|
|
179 |
|
|
|
219 |
|
| Non-recourse funding obligations |
|
|
1,920 |
|
|
|
1,981 |
|
| Long-term borrowings |
|
|
4,570 |
|
|
|
4,612 |
|
| Separate account liabilities |
|
|
7,883 |
|
|
|
9,208 |
|
| Liabilities held for sale |
|
|
127 |
|
|
|
1,094 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
91,794 |
|
|
|
94,519 |
|
|
|
|
|
|
|
|
|
|
| Equity: |
|
|
|
|
|
|
|
|
| Common stock |
|
|
1 |
|
|
|
1 |
|
| Additional paid-in capital |
|
|
11,949 |
|
|
|
11,997 |
|
|
|
|
|
|
|
|
|
|
| Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
| Net unrealized investment gains (losses): |
|
|
|
|
|
|
|
|
| Net unrealized gains (losses) on securities not other-than-temporarily impaired |
|
|
1,236 |
|
|
|
2,431 |
|
| Net unrealized gains (losses) on other-than-temporarily impaired securities |
|
|
18 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
| Net unrealized investment gains (losses) |
|
|
1,254 |
|
|
|
2,453 |
|
|
|
|
|
|
|
|
|
|
| Derivatives qualifying as hedges |
|
|
2,045 |
|
|
|
2,070 |
|
| Foreign currency translation and other adjustments |
|
|
(289 |
) |
|
|
(77 |
) |
|
|
|
|
|
|
|
|
|
| Total accumulated other comprehensive income (loss) |
|
|
3,010 |
|
|
|
4,446 |
|
| Retained earnings |
|
|
564 |
|
|
|
1,179 |
|
| Treasury stock, at cost |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
|
|
|
|
|
|
|
| Total Genworth Financial, Inc.’s stockholders’ equity |
|
|
12,824 |
|
|
|
14,923 |
|
| Noncontrolling interests |
|
|
1,813 |
|
|
|
1,874 |
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
14,637 |
|
|
|
16,797 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
$ |
106,431 |
|
|
$ |
111,316 |
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
| Impact of Foreign Exchange on Operating Results9
Three months ended December 31, 2015 |
|
| |
|
Percentages
Including
Foreign
Exchange |
|
|
Percentages
Excluding
Foreign
Exchange10 |
|
| Canada Mortgage Insurance (MI): |
|
|
|
|
|
|
|
|
| Flow new insurance written |
|
|
(15 |
)% |
|
|
— |
% |
| Flow new insurance written (4Q15 vs. 3Q15) |
|
|
(29 |
)% |
|
|
(26 |
)% |
|
|
|
| Australia MI: |
|
|
|
|
|
|
|
|
| Flow new insurance written |
|
|
(43 |
)% |
|
|
(30 |
)% |
| Flow new insurance written (4Q15 vs. 3Q15) |
|
|
(27 |
)% |
|
|
(24 |
)% |
| 9 |
All percentages are comparing the fourth quarter of 2015 to the fourth quarter of 2014 unless otherwise stated. |
| 10 |
The impact of foreign exchange was calculated using the comparable prior period exchange rates. |
19
Reconciliation of Core Yield to Reported Yield
|
|
|
|
|
| (Assets—amounts in billions) |
|
Three
months ended
December 31,
2015 |
|
| Reported Total Invested Assets and Cash |
|
$ |
75.1 |
|
| Subtract: |
|
|
|
|
| Securities lending |
|
|
0.3 |
|
| Unrealized gains (losses) |
|
|
4.2 |
|
| Derivative counterparty collateral |
|
|
— |
|
|
|
|
|
|
| Adjusted end of period invested assets |
|
$ |
70.6 |
|
|
|
|
|
|
| Average Invested Assets Used in Reported Yield Calculation |
|
$ |
70.2 |
|
| Subtract: |
|
|
|
|
| Restricted commercial mortgage loans and other invested assets related to securitization entities11 |
|
|
0.2 |
|
|
|
|
|
|
| Average Invested Assets Used in Core Yield Calculation |
|
$ |
70.0 |
|
|
|
|
|
|
|
|
| (Income—amounts in millions) |
|
|
|
| Reported Net Investment Income |
|
$ |
781 |
|
| Subtract: |
|
|
|
|
| Bond calls and commercial mortgage loan prepayments |
|
|
18 |
|
| Other non-core items12 |
|
|
(2 |
) |
| Restricted commercial mortgage loans and other invested assets related to securitization entities11 |
|
|
3 |
|
|
|
|
|
|
| Core Net Investment Income |
|
$ |
762 |
|
|
|
|
|
|
| Reported Yield |
|
|
4.45 |
% |
|
|
|
|
|
| Core Yield |
|
|
4.35 |
% |
|
|
|
|
|
| 11 |
Represents the incremental assets and investment income related to restricted commercial mortgage loans and other invested assets. |
| 12 |
Includes cost basis adjustments on structured securities and various other immaterial items. |
20
EXHIBIT 99.2
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH 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
FOURTH QUARTER 2015
Dear Investor,
In the fourth quarter of 2015, the company changed how it reviews its operating businesses and no longer has separate reporting
divisions. Under the new structure, the company has the following five operating business segments: U.S. Mortgage Insurance; Canada Mortgage Insurance; Australia Mortgage Insurance; U.S Life Insurance (which includes its long-term care insurance,
life insurance and fixed annuities businesses); and Runoff (which includes the results of non-strategic products which are no longer actively sold). In addition to the five operating business segments, the company also has Corporate and Other
activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of
the operating segments, including certain smaller international mortgage insurance businesses and discontinued operations. Financial information has been updated for all periods to reflect the reorganized segment reporting structure.
Beginning in the fourth quarter of 2015, the mortgage insurance business in Europe is being separately presented as held for sale and its balance sheet for
all prior periods herein has been re-presented. During 2015, the company recognized an after-tax loss of $141 million, including $134 million recorded in the fourth quarter of 2015, related to the planned sale of this business. The company expects
the transaction to close in the first quarter of 2016, subject to customary closing conditions, including requisite regulatory approvals.
On December 31,
2015, the company early adopted new accounting guidance issued by the Financial Accounting Standards Board related to the presentation of debt issuance costs on the balance sheet. All prior periods in this financial supplement have been re-presented
to reflect the retrospective impacts of this accounting change.
Thank you for your continued interest in Genworth Financial.
Regards,
Amy Corbin
Investor Relations
InvestorInfo@genworth.com
3
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Use of Non-GAAP Measures
This financial supplement includes the non-GAAP(1) financial measure
entitled “net operating income (loss).” The chief operating decision maker evaluates segment performance and allocates resources on the basis of net operating income (loss). The company defines net operating income (loss) as income (loss)
from continuing operations excluding the after-tax effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment
of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse
funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. The company excludes net investment gains (losses) and infrequent or unusual
non-operating items because the company does not consider them to be related to the operating performance of the company’s segments and Corporate and Other activities. A component of the company’s net investment gains (losses) is the
result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by
market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and
restructuring costs are also excluded from net operating income (loss) because, in the company’s opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from net operating income
(loss) if, in the company’s opinion, they are not indicative of overall operating trends.
While some of these items may be significant components of
net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with GAAP, the company believes that net operating income (loss) and measures that are derived from or incorporate net operating income (loss),
including net operating income (loss) per common share on a basic and diluted basis, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management
also uses net operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from net operating income (loss)
have occurred in the past and could, and in some cases will, recur in the future. Net operating income (loss) and net operating income (loss) per common share on a basic and diluted basis are not substitutes for net income (loss) available to
Genworth Financial, Inc.’s common stockholders or net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share on a basic and diluted basis determined in accordance with GAAP. In addition, the
company’s definition of net operating income (loss) may differ from the definitions used by other companies.
In the fourth quarter of 2014, the
company recorded goodwill impairments of $129 million, net of taxes, in the long-term care insurance business and $145 million, net of taxes, in the life insurance business. In the third quarter of 2014, the company recorded goodwill impairments of
$167 million, net of taxes, in the long-term care insurance business and $350 million, net of taxes, in the life insurance business.
The company
recognized an estimated loss of $134 million, net of taxes, in the fourth quarter of 2015 for the planned sale of the mortgage insurance business in Europe, as well as a tax charge of $7 million in the third quarter of 2015 from potential business
portfolio changes related to this business resulting in a total estimated loss on sale of $141 million in 2015.
In the third quarter of 2015, the company
paid an early redemption payment of approximately $1 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth Financial Mortgage Insurance Pty Limited’s notes that were scheduled to
mature in 2021. In the third quarter of 2015, the company also repurchased approximately $50 million principal amount of Genworth Holdings, Inc.’s notes with various maturity dates for a loss of $1 million, net of taxes. In the second quarter
of 2014, the company paid an early redemption payment of approximately $2 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth MI Canada Inc.’s notes that were scheduled to
mature in 2015. These transactions were excluded from net operating income (loss) for the periods presented as they related to a loss on the early extinguishment of debt.
In the third quarter of 2015, the company recorded a DAC impairment of $296 million, net of taxes, on certain term life insurance policies in connection with
entering into an agreement to complete a life block transaction.
In the fourth and second quarters of 2015, the company recorded an after-tax expense of
$3 million and $2 million, respectively, related to restructuring costs as part of an expense reduction plan as the company evaluates and appropriately sizes its organizational needs and expenses.
There were no infrequent or unusual items excluded from net operating income (loss) during the periods presented other than the following items. There was a
$205 million net tax impact in the fourth quarter of 2014 from potential business portfolio changes. The company recognized a tax charge of $174 million in the fourth quarter of 2014 associated with the Australian mortgage insurance business as the
company can no longer assert its intent to permanently reinvest earnings in that business. In connection with the company’s plans to sell the lifestyle protection insurance business, the company made a change to the permanent reinvestment
assertion on one of its legal entities recognizing tax expense of $31 million in the fourth quarter of 2014.
The table on page 9 of this financial
supplement reflects net operating income (loss) as determined in accordance with accounting guidance related to segment reporting, and a reconciliation of net operating income (loss) of the company’s segments and Corporate and Other activities
to net income (loss) available to Genworth Financial, Inc.’s common stockholders for the periods presented. The financial supplement includes other non-GAAP measures management believes enhances the understanding and comparability of
performance by highlighting underlying business activity and profitability drivers. These additional non-GAAP measures are on pages 48 and 49 of this financial supplement.
Adjustments to reconcile net income (loss) attributable to Genworth Financial, Inc.’s common stockholders and net operating income (loss) assume a 35% tax
rate and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves (see page 46).
| (1) |
U.S. Generally Accepted Accounting Principles |
4
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Results of Operations and Selected Operating Performance Measures
The company’s chief operating decision maker evaluates segment performance and allocates resources on the basis of net operating income (loss). The table
on page 9 of this financial supplement reflects net operating income (loss) as determined in accordance with accounting guidance related to segment reporting, and a reconciliation of net operating income (loss) of the company’s segments and
Corporate and Other activities to net income (loss) available to Genworth Financial, Inc.’s common stockholders for the periods presented.
In the
first quarter of 2015, the company revised how it allocates the consolidated provision for income taxes to its operating segments to simplify the process and reflect how the chief operating decision maker is evaluating segment performance. The
revised methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between the
consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. Previously, the company calculated a unique income tax provision for each segment based on
quarterly changes to tax attributes and implications of transactions specific to each product within the segment.
The annually-determined tax rates and
adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year. Prior year amounts have not been re-presented to reflect this revised presentation and are, therefore, not
comparable to the current year provision for income taxes by segment. However, the company does not believe that the previous methodology would have resulted in a materially different segment-level provision for income taxes.
This financial supplement contains selected operating performance measures including “sales” and “insurance in-force” or “risk
in-force” which are commonly used in the insurance industry as measures of operating performance.
Management regularly monitors and reports sales
metrics as a measure of volume of new and renewal business generated in a period. Sales refer to: (1) new insurance written for mortgage insurance; (2) annualized first-year premiums for long-term care and term life insurance products; (3)
annualized first-year deposits plus 5% of excess deposits for universal and term universal life insurance products; (4) 10% of premium deposits for linked-benefits products; and (5) new and additional premiums/deposits for fixed annuities. Sales do
not include renewal premiums on policies or contracts written during prior periods. The company considers new insurance written, annualized first-year premiums/deposits, premium equivalents and new premiums/deposits to be a measure of the
company’s operating performance because they represent a measure of new sales of insurance policies or contracts during a specified period, rather than a measure of the company’s revenues or profitability during that period.
Management regularly monitors and reports insurance in-force and risk in-force. Insurance in-force for the mortgage insurance businesses is a measure of the
aggregate face value of outstanding insurance policies as of the respective reporting date. For risk in-force in the mortgage insurance businesses, the company has computed an “effective” risk in-force amount, which recognizes that the
loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Risk in-force for the U.S. mortgage insurance business is the obligation that is limited under contractual terms to the amounts less than 100% of the
mortgage loan value. Effective risk in-force has been calculated by applying to insurance in-force a factor of 35% that represents the highest expected average per-claim payment for any one underwriting year over the life of the company’s
businesses in Canada and Australia. In Australia, the company has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than 100% coverage. As a result, for loans with these risk share arrangements, the
applicable pro-rata coverage amount provided is used when applying the factor. The company considers insurance in-force and risk in-force to be measures of the company’s operating performance because they represent measures of the size of the
business at a specific date which will generate revenues and profits in a future period, rather than measures of the company’s revenues or profitability during that period.
Management also regularly monitors and reports a loss ratio for the company’s businesses. For the mortgage insurance businesses, the loss ratio is the
ratio of incurred losses and loss adjustment expenses to net earned premiums. For the long-term care insurance business, the loss ratio is the ratio of benefits and other changes in reserves less tabular interest on reserves less loss adjustment
expenses to net earned premiums. The company considers the loss ratio to be a measure of underwriting performance in these businesses and helps to enhance the understanding of the operating performance of the businesses.
These operating performance measures enable the company to compare its operating performance across periods without regard to revenues or profitability related
to policies or contracts sold in prior periods or from investments or other sources.
5
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Financial Highlights
(amounts in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance Sheet Data |
|
December 31,
2015 |
|
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| Total Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income |
|
$ |
9,814 |
|
|
$ |
10,101 |
|
|
$ |
10,381 |
|
|
$ |
10,632 |
|
|
$ |
10,477 |
|
| Total accumulated other comprehensive income |
|
|
3,010 |
|
|
|
3,478 |
|
|
|
3,309 |
|
|
|
4,692 |
|
|
|
4,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Genworth Financial, Inc.’s stockholders’ equity |
|
$ |
12,824 |
|
|
$ |
13,579 |
|
|
$ |
13,690 |
|
|
$ |
15,324 |
|
|
$ |
14,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per common share |
|
$ |
25.76 |
|
|
$ |
27.29 |
|
|
$ |
27.52 |
|
|
$ |
30.81 |
|
|
$ |
30.04 |
|
| Book value per common share, excluding accumulated other comprehensive income |
|
$ |
19.71 |
|
|
$ |
20.30 |
|
|
$ |
20.87 |
|
|
$ |
21.38 |
|
|
$ |
21.09 |
|
| Common shares outstanding as of the balance sheet date |
|
|
497.8 |
|
|
|
497.5 |
|
|
|
497.4 |
|
|
|
497.4 |
|
|
|
496.7 |
|
|
|
| |
|
Twelve months ended |
|
| Twelve Month Rolling Average ROE |
|
December 31,
2015 |
|
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| GAAP Basis ROE |
|
|
-6.0% |
|
|
|
-10.3% |
|
|
|
-15.0% |
|
|
|
-11.3% |
|
|
|
-10.8% |
|
| Operating ROE(1) |
|
|
2.5% |
|
|
|
-0.7% |
|
|
|
-4.2% |
|
|
|
-3.8% |
|
|
|
-3.5% |
|
|
|
| |
|
Three months ended |
|
| Quarterly Average ROE |
|
December 31,
2015 |
|
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| GAAP Basis ROE |
|
|
-11.7% |
|
|
|
-11.1% |
|
|
|
-7.3% |
|
|
|
5.8% |
|
|
|
-28.0% |
|
| Operating ROE(1) |
|
|
-3.3% |
|
|
|
2.5% |
|
|
|
4.5% |
|
|
|
5.8% |
|
|
|
-15.3% |
|
|
|
|
|
|
|
|
|
|
| Basic and Diluted Shares |
|
Three months ended
December 31, 2015 |
|
|
Twelve months ended
December 31, 2015 |
|
| Weighted-average common shares used in basic earnings per common share calculations |
|
|
497.6 |
|
|
|
497.4 |
|
| Potentially dilutive securities: |
|
|
|
|
|
|
|
|
| Stock options, restricted stock units and stock appreciation rights |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Weighted-average common shares used in diluted earnings per common share
calculations(2) |
|
|
497.6 |
|
|
|
497.4 |
|
|
|
|
|
|
|
|
|
|
| (1) |
See page 48 herein for a reconciliation of GAAP Basis ROE to Operating ROE. |
| (2) |
Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss
from continuing operations for the three and twelve months ended December 31, 2015, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three and twelve months ended
December 31, 2015, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.4 million and 1.6 million, respectively, would have been antidilutive to the calculation. If the company had not incurred a
loss from continuing operations for the three and twelve months ended December 31, 2015, dilutive potential weighted-average common shares outstanding would have been 499.0 million. |
6
Consolidated Quarterly Results
7
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Consolidated Net Income (Loss) by Quarter
(amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
1,157 |
|
|
$ |
1,145 |
|
|
$ |
1,134 |
|
|
$ |
1,143 |
|
|
$ |
4,579 |
|
|
$ |
1,214 |
|
|
$ |
1,210 |
|
|
$ |
1,144 |
|
|
$ |
1,132 |
|
|
$ |
4,700 |
|
| Net investment income |
|
|
781 |
|
|
|
783 |
|
|
|
793 |
|
|
|
781 |
|
|
|
3,138 |
|
|
|
797 |
|
|
|
778 |
|
|
|
791 |
|
|
|
776 |
|
|
|
3,142 |
|
| Net investment gains (losses) |
|
|
(16 |
) |
|
|
(51 |
) |
|
|
8 |
|
|
|
(16 |
) |
|
|
(75 |
) |
|
|
(11 |
) |
|
|
(27 |
) |
|
|
34 |
|
|
|
(18 |
) |
|
|
(22 |
) |
| Policy fees and other income |
|
|
234 |
|
|
|
223 |
|
|
|
222 |
|
|
|
227 |
|
|
|
906 |
|
|
|
229 |
|
|
|
229 |
|
|
|
225 |
|
|
|
226 |
|
|
|
909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
2,156 |
|
|
|
2,100 |
|
|
|
2,157 |
|
|
|
2,135 |
|
|
|
8,548 |
|
|
|
2,229 |
|
|
|
2,190 |
|
|
|
2,194 |
|
|
|
2,116 |
|
|
|
8,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
1,435 |
|
|
|
1,290 |
|
|
|
1,232 |
|
|
|
1,192 |
|
|
|
5,149 |
|
|
|
2,136 |
|
|
|
1,934 |
|
|
|
1,200 |
|
|
|
1,148 |
|
|
|
6,418 |
|
| Interest credited |
|
|
180 |
|
|
|
179 |
|
|
|
181 |
|
|
|
180 |
|
|
|
720 |
|
|
|
185 |
|
|
|
185 |
|
|
|
184 |
|
|
|
183 |
|
|
|
737 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
433 |
|
|
|
314 |
|
|
|
295 |
|
|
|
267 |
|
|
|
1,309 |
|
|
|
299 |
|
|
|
284 |
|
|
|
282 |
|
|
|
273 |
|
|
|
1,138 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
207 |
|
|
|
563 |
|
|
|
101 |
|
|
|
95 |
|
|
|
966 |
|
|
|
128 |
|
|
|
113 |
|
|
|
108 |
|
|
|
104 |
|
|
|
453 |
|
| Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
299 |
|
|
|
550 |
|
|
|
— |
|
|
|
— |
|
|
|
849 |
|
| Interest expense |
|
|
104 |
|
|
|
105 |
|
|
|
103 |
|
|
|
107 |
|
|
|
419 |
|
|
|
106 |
|
|
|
104 |
|
|
|
112 |
|
|
|
111 |
|
|
|
433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
2,359 |
|
|
|
2,451 |
|
|
|
1,912 |
|
|
|
1,841 |
|
|
|
8,563 |
|
|
|
3,153 |
|
|
|
3,170 |
|
|
|
1,886 |
|
|
|
1,819 |
|
|
|
10,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(203 |
) |
|
|
(351 |
) |
|
|
245 |
|
|
|
294 |
|
|
|
(15 |
) |
|
|
(924 |
) |
|
|
(980 |
) |
|
|
308 |
|
|
|
297 |
|
|
|
(1,299 |
) |
| Provision (benefit) for income taxes |
|
|
(36 |
) |
|
|
(134 |
) |
|
|
70 |
|
|
|
91 |
|
|
|
(9 |
) |
|
|
(78 |
) |
|
|
(187 |
) |
|
|
84 |
|
|
|
87 |
|
|
|
(94 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(167 |
) |
|
|
(217 |
) |
|
|
175 |
|
|
|
203 |
|
|
|
(6 |
) |
|
|
(846 |
) |
|
|
(793 |
) |
|
|
224 |
|
|
|
210 |
|
|
|
(1,205 |
) |
| Income (loss) from discontinued operations, net of taxes(1) |
|
|
(73 |
) |
|
|
(21 |
) |
|
|
(314 |
) |
|
|
1 |
|
|
|
(407 |
) |
|
|
138 |
|
|
|
6 |
|
|
|
4 |
|
|
|
9 |
|
|
|
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) |
|
|
(240 |
) |
|
|
(238 |
) |
|
|
(139 |
) |
|
|
204 |
|
|
|
(413 |
) |
|
|
(708 |
) |
|
|
(787 |
) |
|
|
228 |
|
|
|
219 |
|
|
|
(1,048 |
) |
| Less: net income attributable to noncontrolling interests |
|
|
52 |
|
|
|
46 |
|
|
|
54 |
|
|
|
50 |
|
|
|
202 |
|
|
|
52 |
|
|
|
57 |
|
|
|
52 |
|
|
|
35 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS |
|
$ |
(292 |
) |
|
$ |
(284 |
) |
|
$ |
(193 |
) |
|
$ |
154 |
|
|
$ |
(615 |
) |
|
$ |
(760 |
) |
|
$ |
(844 |
) |
|
$ |
176 |
|
|
$ |
184 |
|
|
$ |
(1,244 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (Loss) Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.44 |
) |
|
$ |
(0.53 |
) |
|
$ |
0.24 |
|
|
$ |
0.31 |
|
|
$ |
(0.42 |
) |
|
$ |
(1.81 |
) |
|
$ |
(1.71 |
) |
|
$ |
0.35 |
|
|
$ |
0.35 |
|
|
$ |
(2.82 |
) |
| Diluted |
|
$ |
(0.44 |
) |
|
$ |
(0.53 |
) |
|
$ |
0.24 |
|
|
$ |
0.31 |
|
|
$ |
(0.42 |
) |
|
$ |
(1.81 |
) |
|
$ |
(1.71 |
) |
|
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
(2.82 |
) |
| Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.59 |
) |
|
$ |
(0.57 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.31 |
|
|
$ |
(1.24 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.70 |
) |
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
(2.51 |
) |
| Diluted |
|
$ |
(0.59 |
) |
|
$ |
(0.57 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.31 |
|
|
$ |
(1.24 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.70 |
) |
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
(2.51 |
) |
| Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
497.6 |
|
|
|
497.4 |
|
|
|
497.4 |
|
|
|
497.0 |
|
|
|
497.4 |
|
|
|
496.7 |
|
|
|
496.6 |
|
|
|
496.6 |
|
|
|
495.8 |
|
|
|
496.4 |
|
| Diluted(2) |
|
|
497.6 |
|
|
|
497.4 |
|
|
|
499.3 |
|
|
|
498.9 |
|
|
|
497.4 |
|
|
|
496.7 |
|
|
|
496.6 |
|
|
|
503.6 |
|
|
|
502.7 |
|
|
|
496.4 |
|
| (1) |
Income (loss) from discontinued operations related to the lifestyle protection business that was sold on December 1, 2015. |
| (2) |
Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss
from continuing operations, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share as the inclusion of shares for stock options, restricted stock units and stock appreciation
rights of 1.4 million, 1.3 million, 3.2 million and 5.4 million, respectively, for the three months ended December 31, 2015, September 30, 2015, December 31, 2014 and September 30, 2014 and 1.6 million and 5.6 million, respectively, for the twelve
months ended December 31, 2015 and 2014 would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations in these periods, dilutive potential weighted-average common shares outstanding would have
been 499.0 million, 498.7 million, 499.9 million and 502.0 million, respectively, for the three months ended December 31, 2015, September 30, 2015, December 31, 2014 and September 30, 2014 and 499.0 million and 502.0 million, respectively, for the
twelve months ended December 31, 2015 and 2014. |
8
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Income (Loss) by Segment by Quarter
(amounts in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| U.S. Mortgage Insurance segment |
|
$ |
41 |
|
|
$ |
37 |
|
|
$ |
49 |
|
|
$ |
52 |
|
|
$ |
179 |
|
|
$ |
21 |
|
|
$ |
(2 |
) |
|
$ |
39 |
|
|
$ |
33 |
|
|
$ |
91 |
|
| Canada Mortgage Insurance segment |
|
|
37 |
|
|
|
38 |
|
|
|
37 |
|
|
|
40 |
|
|
|
152 |
|
|
|
36 |
|
|
|
46 |
|
|
|
47 |
|
|
|
41 |
|
|
|
170 |
|
| Australia Mortgage Insurance segment |
|
|
22 |
|
|
|
21 |
|
|
|
29 |
|
|
|
30 |
|
|
|
102 |
|
|
|
33 |
|
|
|
48 |
|
|
|
57 |
|
|
|
62 |
|
|
|
200 |
|
| U.S. Life Insurance segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-Term Care Insurance |
|
|
19 |
|
|
|
(10 |
) |
|
|
10 |
|
|
|
10 |
|
|
|
29 |
|
|
|
(506 |
) |
|
|
(361 |
) |
|
|
6 |
|
|
|
46 |
|
|
|
(815 |
) |
| Life Insurance |
|
|
(173 |
) |
|
|
31 |
|
|
|
22 |
|
|
|
40 |
|
|
|
(80 |
) |
|
|
1 |
|
|
|
13 |
|
|
|
39 |
|
|
|
21 |
|
|
|
74 |
|
| Fixed Annuities |
|
|
19 |
|
|
|
19 |
|
|
|
25 |
|
|
|
31 |
|
|
|
94 |
|
|
|
23 |
|
|
|
26 |
|
|
|
24 |
|
|
|
27 |
|
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total U.S. Life Insurance segment |
|
|
(135 |
) |
|
|
40 |
|
|
|
57 |
|
|
|
81 |
|
|
|
43 |
|
|
|
(482 |
) |
|
|
(322 |
) |
|
|
69 |
|
|
|
94 |
|
|
|
(641 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Runoff segment |
|
|
11 |
|
|
|
(4 |
) |
|
|
9 |
|
|
|
11 |
|
|
|
27 |
|
|
|
16 |
|
|
|
5 |
|
|
|
15 |
|
|
|
12 |
|
|
|
48 |
|
| Corporate and Other |
|
|
(58 |
) |
|
|
(68 |
) |
|
|
(62 |
) |
|
|
(60 |
) |
|
|
(248 |
) |
|
|
(39 |
) |
|
|
(98 |
) |
|
|
(73 |
) |
|
|
(56 |
) |
|
|
(266 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME (LOSS) |
|
|
(82 |
) |
|
|
64 |
|
|
|
119 |
|
|
|
154 |
|
|
|
255 |
|
|
|
(415 |
) |
|
|
(323 |
) |
|
|
154 |
|
|
|
186 |
|
|
|
(398 |
) |
| ADJUSTMENTS TO NET OPERATING INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment gains (losses), net |
|
|
— |
|
|
|
(22 |
) |
|
|
4 |
|
|
|
(1 |
) |
|
|
(19 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
20 |
|
|
|
(11 |
) |
|
|
(5 |
) |
| Goodwill impairment, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(274 |
) |
|
|
(517 |
) |
|
|
— |
|
|
|
— |
|
|
|
(791 |
) |
| Gains (losses) on sale of business, net |
|
|
(134 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
(141 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Gains (losses) on early extinguishment of debt, net |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(2 |
) |
| Gains (losses) from life block transactions, net |
|
|
— |
|
|
|
(296 |
) |
|
|
— |
|
|
|
— |
|
|
|
(296 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Expenses related to restructuring, net |
|
|
(3 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Tax impact from potential business portfolio changes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(205 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(205 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL INC.’S COMMON STOCKHOLDERS |
|
|
(219 |
) |
|
|
(263 |
) |
|
|
121 |
|
|
|
153 |
|
|
|
(208 |
) |
|
|
(898 |
) |
|
|
(850 |
) |
|
|
172 |
|
|
|
175 |
|
|
|
(1,401 |
) |
| Net income attributable to noncontrolling interests |
|
|
52 |
|
|
|
46 |
|
|
|
54 |
|
|
|
50 |
|
|
|
202 |
|
|
|
52 |
|
|
|
57 |
|
|
|
52 |
|
|
|
35 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(167 |
) |
|
|
(217 |
) |
|
|
175 |
|
|
|
203 |
|
|
|
(6 |
) |
|
|
(846 |
) |
|
|
(793 |
) |
|
|
224 |
|
|
|
210 |
|
|
|
(1,205 |
) |
| Income (loss) from discontinued operations, net of taxes |
|
|
(73 |
) |
|
|
(21 |
) |
|
|
(314 |
) |
|
|
1 |
|
|
|
(407 |
) |
|
|
138 |
|
|
|
6 |
|
|
|
4 |
|
|
|
9 |
|
|
|
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) |
|
|
(240 |
) |
|
|
(238 |
) |
|
|
(139 |
) |
|
|
204 |
|
|
|
(413 |
) |
|
|
(708 |
) |
|
|
(787 |
) |
|
|
228 |
|
|
|
219 |
|
|
|
(1,048 |
) |
| Less: net income attributable to noncontrolling interests |
|
|
52 |
|
|
|
46 |
|
|
|
54 |
|
|
|
50 |
|
|
|
202 |
|
|
|
52 |
|
|
|
57 |
|
|
|
52 |
|
|
|
35 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS |
|
$ |
(292 |
) |
|
$ |
(284 |
) |
|
$ |
(193 |
) |
|
$ |
154 |
|
|
$ |
(615 |
) |
|
$ |
(760 |
) |
|
$ |
(844 |
) |
|
$ |
176 |
|
|
$ |
184 |
|
|
$ |
(1,244 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (Loss) Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) available to Genworth Financial, Inc.’s common stockholders per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.59 |
) |
|
$ |
(0.57 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.31 |
|
|
$ |
(1.24 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.70 |
) |
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
(2.51 |
) |
| Diluted |
|
$ |
(0.59 |
) |
|
$ |
(0.57 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.31 |
|
|
$ |
(1.24 |
) |
|
$ |
(1.53 |
) |
|
$ |
(1.70 |
) |
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
(2.51 |
) |
| Net operating income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.17 |
) |
|
$ |
0.13 |
|
|
$ |
0.24 |
|
|
$ |
0.31 |
|
|
$ |
0.51 |
|
|
$ |
(0.83 |
) |
|
$ |
(0.65 |
) |
|
$ |
0.31 |
|
|
$ |
0.37 |
|
|
$ |
(0.80 |
) |
| Diluted |
|
$ |
(0.17 |
) |
|
$ |
0.13 |
|
|
$ |
0.24 |
|
|
$ |
0.31 |
|
|
$ |
0.51 |
|
|
$ |
(0.83 |
) |
|
$ |
(0.65 |
) |
|
$ |
0.31 |
|
|
$ |
0.37 |
|
|
$ |
(0.80 |
) |
| Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
497.6 |
|
|
|
497.4 |
|
|
|
497.4 |
|
|
|
497.0 |
|
|
|
497.4 |
|
|
|
496.7 |
|
|
|
496.6 |
|
|
|
496.6 |
|
|
|
495.8 |
|
|
|
496.4 |
|
| Diluted(1) |
|
|
497.6 |
|
|
|
497.4 |
|
|
|
499.3 |
|
|
|
498.9 |
|
|
|
497.4 |
|
|
|
496.7 |
|
|
|
496.6 |
|
|
|
503.6 |
|
|
|
502.7 |
|
|
|
496.4 |
|
| (1) |
Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss
from continuing operations, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share as the inclusion of shares for stock options, restricted stock units and stock appreciation
rights of 1.4 million, 1.3 million, 3.2 million and 5.4 million, respectively, for the three months ended December 31, 2015, September 30, 2015, December 31, 2014 and September 30, 2014 and 1.6 million and 5.6 million, respectively, for the twelve
months ended December 31, 2015 and 2014 would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations in these periods, dilutive potential weighted-average common shares outstanding would have
been 499.0 million, 498.7 million, 499.9 million and 502.0 million, respectively, for the three months ended December 31, 2015, September 30, 2015, December 31, 2014 and September 30, 2014 and 499.0 million and 502.0 million, respectively, for the
twelve months ended December 31, 2015 and 2014. Since it had net operating income for the three months ended September 30, 2015 and the twelve months ended December 31, 2015, the company used 498.7 million and 499.0 million, respectively, diluted
weighted-average common shares outstanding in the calculation of diluted net operating income per common share. |
9
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Consolidated Balance Sheets
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31,
2015 |
|
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed maturity securities available-for-sale, at fair value |
|
$ |
58,197 |
|
|
$ |
60,646 |
|
|
$ |
60,368 |
|
|
$ |
61,732 |
|
|
$ |
61,077 |
|
| Equity securities available-for-sale, at fair value |
|
|
310 |
|
|
|
273 |
|
|
|
299 |
|
|
|
299 |
|
|
|
275 |
|
| Commercial mortgage loans |
|
|
6,170 |
|
|
|
6,133 |
|
|
|
6,175 |
|
|
|
6,149 |
|
|
|
6,100 |
|
| Restricted commercial mortgage loans related to securitization entities |
|
|
161 |
|
|
|
175 |
|
|
|
181 |
|
|
|
188 |
|
|
|
201 |
|
| Policy loans |
|
|
1,568 |
|
|
|
1,567 |
|
|
|
1,584 |
|
|
|
1,506 |
|
|
|
1,501 |
|
| Other invested assets |
|
|
2,309 |
|
|
|
2,764 |
|
|
|
2,176 |
|
|
|
2,667 |
|
|
|
2,208 |
|
| Restricted other invested assets related to securitization entities |
|
|
413 |
|
|
|
412 |
|
|
|
410 |
|
|
|
411 |
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total investments |
|
|
69,128 |
|
|
|
71,970 |
|
|
|
71,193 |
|
|
|
72,952 |
|
|
|
71,773 |
|
| Cash and cash equivalents |
|
|
5,965 |
|
|
|
3,635 |
|
|
|
4,069 |
|
|
|
4,937 |
|
|
|
4,645 |
|
| Accrued investment income |
|
|
653 |
|
|
|
682 |
|
|
|
612 |
|
|
|
713 |
|
|
|
660 |
|
| Deferred acquisition costs |
|
|
4,398 |
|
|
|
4,441 |
|
|
|
4,899 |
|
|
|
4,748 |
|
|
|
4,852 |
|
| Intangible assets and goodwill |
|
|
357 |
|
|
|
297 |
|
|
|
300 |
|
|
|
221 |
|
|
|
265 |
|
| Reinsurance recoverable |
|
|
17,245 |
|
|
|
17,255 |
|
|
|
17,276 |
|
|
|
17,285 |
|
|
|
17,291 |
|
| Other assets |
|
|
520 |
|
|
|
523 |
|
|
|
580 |
|
|
|
473 |
|
|
|
479 |
|
| Deferred tax asset |
|
|
155 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Separate account assets |
|
|
7,883 |
|
|
|
7,893 |
|
|
|
8,702 |
|
|
|
9,064 |
|
|
|
9,208 |
|
| Assets held for sale(1) |
|
|
127 |
|
|
|
1,484 |
|
|
|
1,493 |
|
|
|
1,897 |
|
|
|
2,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
106,431 |
|
|
$ |
108,180 |
|
|
$ |
109,124 |
|
|
$ |
112,290 |
|
|
$ |
111,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The assets held for sale related to the lifestyle protection insurance business (prior to its sale on December 1, 2015) and the European mortgage insurance business (prior to its sale) have been segregated in the
consolidated balance sheets. The major asset categories for assets held for sale were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31,
2015 |
|
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| ASSETS |
|
|
|
|
|
| Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed maturity securities available-for-sale, at fair value |
|
$ |
195 |
|
|
$ |
1,322 |
|
|
$ |
1,304 |
|
|
$ |
1,210 |
|
|
$ |
1,370 |
|
| Equity securities available-for-sale, at fair value |
|
|
— |
|
|
|
6 |
|
|
|
7 |
|
|
|
7 |
|
|
|
7 |
|
| Other invested assets |
|
|
6 |
|
|
|
32 |
|
|
|
39 |
|
|
|
56 |
|
|
|
88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total investments |
|
|
201 |
|
|
|
1,360 |
|
|
|
1,350 |
|
|
|
1,273 |
|
|
|
1,465 |
|
| Cash and cash equivalents |
|
|
28 |
|
|
|
173 |
|
|
|
185 |
|
|
|
221 |
|
|
|
273 |
|
| Accrued investment income |
|
|
3 |
|
|
|
25 |
|
|
|
23 |
|
|
|
22 |
|
|
|
25 |
|
| Deferred acquisition costs |
|
|
— |
|
|
|
168 |
|
|
|
176 |
|
|
|
173 |
|
|
|
193 |
|
| Intangible assets |
|
|
— |
|
|
|
23 |
|
|
|
22 |
|
|
|
21 |
|
|
|
23 |
|
| Reinsurance recoverable |
|
|
21 |
|
|
|
57 |
|
|
|
56 |
|
|
|
54 |
|
|
|
55 |
|
| Other assets |
|
|
14 |
|
|
|
129 |
|
|
|
139 |
|
|
|
133 |
|
|
|
109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets held for sale |
|
|
267 |
|
|
|
1,935 |
|
|
|
1,951 |
|
|
|
1,897 |
|
|
|
2,143 |
|
| Fair value less pension settlement costs and closing costs impairment |
|
|
(140 |
) |
|
|
(451 |
) |
|
|
(458 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets held for sale |
|
$ |
127 |
|
|
$ |
1,484 |
|
|
$ |
1,493 |
|
|
$ |
1,897 |
|
|
$ |
2,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Consolidated Balance Sheets
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31,
2015 |
|
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Future policy benefits |
|
$ |
36,475 |
|
|
$ |
36,472 |
|
|
$ |
36,298 |
|
|
$ |
36,488 |
|
|
$ |
35,915 |
|
| Policyholder account balances |
|
|
26,209 |
|
|
|
26,000 |
|
|
|
25,987 |
|
|
|
26,136 |
|
|
|
26,032 |
|
| Liability for policy and contract claims |
|
|
8,095 |
|
|
|
8,009 |
|
|
|
7,936 |
|
|
|
7,877 |
|
|
|
7,881 |
|
| Unearned premiums |
|
|
3,308 |
|
|
|
3,281 |
|
|
|
3,373 |
|
|
|
3,266 |
|
|
|
3,485 |
|
| Other liabilities |
|
|
3,004 |
|
|
|
3,225 |
|
|
|
3,125 |
|
|
|
3,613 |
|
|
|
3,234 |
|
| Borrowings related to securitization entities |
|
|
179 |
|
|
|
188 |
|
|
|
199 |
|
|
|
205 |
|
|
|
219 |
|
| Non-recourse funding obligations |
|
|
1,920 |
|
|
|
1,937 |
|
|
|
1,953 |
|
|
|
1,968 |
|
|
|
1,981 |
|
| Long-term borrowings |
|
|
4,570 |
|
|
|
4,573 |
|
|
|
4,581 |
|
|
|
4,575 |
|
|
|
4,612 |
|
| Deferred tax liability |
|
|
24 |
|
|
|
200 |
|
|
|
258 |
|
|
|
1,056 |
|
|
|
858 |
|
| Separate account liabilities |
|
|
7,883 |
|
|
|
7,893 |
|
|
|
8,702 |
|
|
|
9,064 |
|
|
|
9,208 |
|
| Liabilities held for sale(1) |
|
|
127 |
|
|
|
986 |
|
|
|
985 |
|
|
|
961 |
|
|
|
1,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
91,794 |
|
|
|
92,764 |
|
|
|
93,397 |
|
|
|
95,209 |
|
|
|
94,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
| Additional paid-in capital |
|
|
11,949 |
|
|
|
11,944 |
|
|
|
11,940 |
|
|
|
11,998 |
|
|
|
11,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unrealized investment gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unrealized gains (losses) on securities not other-than-temporarily impaired |
|
|
1,236 |
|
|
|
1,709 |
|
|
|
1,606 |
|
|
|
2,724 |
|
|
|
2,431 |
|
| Net unrealized gains (losses) on other-than-temporarily impaired securities |
|
|
18 |
|
|
|
22 |
|
|
|
22 |
|
|
|
24 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unrealized investment gains (losses) |
|
|
1,254 |
|
|
|
1,731 |
|
|
|
1,628 |
|
|
|
2,748 |
|
|
|
2,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives qualifying as hedges |
|
|
2,045 |
|
|
|
2,130 |
|
|
|
1,913 |
|
|
|
2,247 |
|
|
|
2,070 |
|
| Foreign currency translation and other adjustments |
|
|
(289 |
) |
|
|
(383 |
) |
|
|
(232 |
) |
|
|
(303 |
) |
|
|
(77 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total accumulated other comprehensive income |
|
|
3,010 |
|
|
|
3,478 |
|
|
|
3,309 |
|
|
|
4,692 |
|
|
|
4,446 |
|
| Retained earnings |
|
|
564 |
|
|
|
856 |
|
|
|
1,140 |
|
|
|
1,333 |
|
|
|
1,179 |
|
| Treasury stock, at cost |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
(2,700 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Genworth Financial, Inc.’s stockholders’ equity |
|
|
12,824 |
|
|
|
13,579 |
|
|
|
13,690 |
|
|
|
15,324 |
|
|
|
14,923 |
|
| Noncontrolling interests |
|
|
1,813 |
|
|
|
1,837 |
|
|
|
2,037 |
|
|
|
1,757 |
|
|
|
1,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
14,637 |
|
|
|
15,416 |
|
|
|
15,727 |
|
|
|
17,081 |
|
|
|
16,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
$ |
106,431 |
|
|
$ |
108,180 |
|
|
$ |
109,124 |
|
|
$ |
112,290 |
|
|
$ |
111,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The liabilities held for sale related to the lifestyle protection insurance business (prior to its sale on December 1, 2015) and the European mortgage insurance business (prior to its sale) have been segregated in the
consolidated balance sheets. The major liability categories for liabilities held for sale were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31,
2015 |
|
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Policyholder account balances |
|
$ |
— |
|
|
$ |
9 |
|
|
$ |
10 |
|
|
$ |
10 |
|
|
$ |
11 |
|
| Liability for policy and contract claims |
|
|
56 |
|
|
|
164 |
|
|
|
162 |
|
|
|
153 |
|
|
|
162 |
|
| Unearned premiums |
|
|
58 |
|
|
|
471 |
|
|
|
478 |
|
|
|
465 |
|
|
|
501 |
|
| Other liabilities |
|
|
12 |
|
|
|
312 |
|
|
|
305 |
|
|
|
286 |
|
|
|
370 |
|
| Deferred tax liability |
|
|
1 |
|
|
|
30 |
|
|
|
30 |
|
|
|
47 |
|
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities held for sale |
|
$ |
127 |
|
|
$ |
986 |
|
|
$ |
985 |
|
|
$ |
961 |
|
|
$ |
1,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Consolidated Balance Sheet by Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2015 |
|
| |
|
U.S.
Mortgage
Insurance |
|
|
Canada
Mortgage
Insurance |
|
|
Australia
Mortgage
Insurance |
|
|
U.S. Life
Insurance |
|
|
Runoff |
|
|
Corporate and
Other(1) |
|
|
Total |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and investments |
|
$ |
2,227 |
|
|
$ |
4,295 |
|
|
$ |
2,886 |
|
|
$ |
60,788 |
|
|
$ |
2,862 |
|
|
$ |
2,688 |
|
|
$ |
75,746 |
|
| Deferred acquisition costs and intangible assets |
|
|
32 |
|
|
|
123 |
|
|
|
56 |
|
|
|
4,251 |
|
|
|
285 |
|
|
|
8 |
|
|
|
4,755 |
|
| Reinsurance recoverable |
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
16,415 |
|
|
|
824 |
|
|
|
— |
|
|
|
17,245 |
|
| Deferred tax and other assets |
|
|
634 |
|
|
|
102 |
|
|
|
45 |
|
|
|
(1,924 |
) |
|
|
261 |
|
|
|
1,557 |
|
|
|
675 |
|
| Separate account assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,883 |
|
|
|
— |
|
|
|
7,883 |
|
| Assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
127 |
|
|
|
127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
2,899 |
|
|
$ |
4,520 |
|
|
$ |
2,987 |
|
|
$ |
79,530 |
|
|
$ |
12,115 |
|
|
$ |
4,380 |
|
|
$ |
106,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Future policy benefits |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
36,471 |
|
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
36,475 |
|
| Policyholder account balances |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,009 |
|
|
|
3,200 |
|
|
|
— |
|
|
|
26,209 |
|
| Liability for policy and contract claims |
|
|
849 |
|
|
|
87 |
|
|
|
165 |
|
|
|
6,969 |
|
|
|
18 |
|
|
|
7 |
|
|
|
8,095 |
|
| Unearned premiums |
|
|
258 |
|
|
|
1,460 |
|
|
|
963 |
|
|
|
621 |
|
|
|
6 |
|
|
|
— |
|
|
|
3,308 |
|
| Non-recourse funding obligations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,950 |
|
|
|
— |
|
|
|
(30 |
) |
|
|
1,920 |
|
| Deferred tax and other liabilities |
|
|
89 |
|
|
|
170 |
|
|
|
152 |
|
|
|
659 |
|
|
|
290 |
|
|
|
1,668 |
|
|
|
3,028 |
|
| Borrowings and capital securities |
|
|
— |
|
|
|
313 |
|
|
|
178 |
|
|
|
— |
|
|
|
10 |
|
|
|
4,248 |
|
|
|
4,749 |
|
| Separate account liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,883 |
|
|
|
— |
|
|
|
7,883 |
|
| Liabilities held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
127 |
|
|
|
127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
1,196 |
|
|
|
2,030 |
|
|
|
1,458 |
|
|
|
69,679 |
|
|
|
11,411 |
|
|
|
6,020 |
|
|
|
91,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allocated equity, excluding accumulated other comprehensive income (loss) |
|
|
1,701 |
|
|
|
1,637 |
|
|
|
662 |
|
|
|
6,646 |
|
|
|
725 |
|
|
|
(1,557 |
) |
|
|
9,814 |
|
| Allocated accumulated other comprehensive income (loss) |
|
|
2 |
|
|
|
(194 |
) |
|
|
101 |
|
|
|
3,205 |
|
|
|
(21 |
) |
|
|
(83 |
) |
|
|
3,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Genworth Financial, Inc.’s stockholders’ equity |
|
|
1,703 |
|
|
|
1,443 |
|
|
|
763 |
|
|
|
9,851 |
|
|
|
704 |
|
|
|
(1,640 |
) |
|
|
12,824 |
|
| Noncontrolling interests |
|
|
— |
|
|
|
1,047 |
|
|
|
766 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
1,703 |
|
|
|
2,490 |
|
|
|
1,529 |
|
|
|
9,851 |
|
|
|
704 |
|
|
|
(1,640 |
) |
|
|
14,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
$ |
2,899 |
|
|
$ |
4,520 |
|
|
$ |
2,987 |
|
|
$ |
79,530 |
|
|
$ |
12,115 |
|
|
$ |
4,380 |
|
|
$ |
106,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Includes inter-segment eliminations and other businesses that are managed outside the operating segments. |
12
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Consolidated Balance Sheet by Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, 2015 |
|
| |
|
U.S.
Mortgage
Insurance |
|
|
Canada
Mortgage
Insurance |
|
|
Australia
Mortgage
Insurance |
|
|
U.S. Life
Insurance |
|
|
Runoff |
|
|
Corporate and
Other(1) |
|
|
Total |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and investments |
|
$ |
2,209 |
|
|
$ |
4,306 |
|
|
$ |
2,893 |
|
|
$ |
61,322 |
|
|
$ |
2,742 |
|
|
$ |
2,815 |
|
|
$ |
76,287 |
|
| Deferred acquisition costs and intangible assets |
|
|
29 |
|
|
|
125 |
|
|
|
42 |
|
|
|
4,254 |
|
|
|
280 |
|
|
|
8 |
|
|
|
4,738 |
|
| Reinsurance recoverable |
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
16,420 |
|
|
|
829 |
|
|
|
— |
|
|
|
17,255 |
|
| Other assets |
|
|
38 |
|
|
|
56 |
|
|
|
10 |
|
|
|
335 |
|
|
|
18 |
|
|
|
66 |
|
|
|
523 |
|
| Separate account assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,893 |
|
|
|
— |
|
|
|
7,893 |
|
| Assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,484 |
|
|
|
1,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
2,282 |
|
|
$ |
4,487 |
|
|
$ |
2,945 |
|
|
$ |
82,331 |
|
|
$ |
11,762 |
|
|
$ |
4,373 |
|
|
$ |
108,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Future policy benefits |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
36,468 |
|
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
36,472 |
|
| Policyholder account balances |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,786 |
|
|
|
3,214 |
|
|
|
— |
|
|
|
26,000 |
|
| Liability for policy and contract claims |
|
|
953 |
|
|
|
83 |
|
|
|
156 |
|
|
|
6,791 |
|
|
|
18 |
|
|
|
8 |
|
|
|
8,009 |
|
| Unearned premiums |
|
|
240 |
|
|
|
1,467 |
|
|
|
956 |
|
|
|
613 |
|
|
|
5 |
|
|
|
— |
|
|
|
3,281 |
|
| Non-recourse funding obligations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,967 |
|
|
|
— |
|
|
|
(30 |
) |
|
|
1,937 |
|
| Deferred tax and other liabilities |
|
|
(565 |
) |
|
|
82 |
|
|
|
129 |
|
|
|
3,512 |
|
|
|
(1 |
) |
|
|
268 |
|
|
|
3,425 |
|
| Borrowings and capital securities |
|
|
— |
|
|
|
324 |
|
|
|
171 |
|
|
|
— |
|
|
|
11 |
|
|
|
4,255 |
|
|
|
4,761 |
|
| Separate account liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,893 |
|
|
|
— |
|
|
|
7,893 |
|
| Liabilities held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
986 |
|
|
|
986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
628 |
|
|
|
1,956 |
|
|
|
1,412 |
|
|
|
72,137 |
|
|
|
11,144 |
|
|
|
5,487 |
|
|
|
92,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allocated equity, excluding accumulated other comprehensive income (loss) |
|
|
1,642 |
|
|
|
1,616 |
|
|
|
700 |
|
|
|
6,485 |
|
|
|
634 |
|
|
|
(976 |
) |
|
|
10,101 |
|
| Allocated accumulated other comprehensive income (loss) |
|
|
12 |
|
|
|
(151 |
) |
|
|
62 |
|
|
|
3,709 |
|
|
|
(16 |
) |
|
|
(138 |
) |
|
|
3,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Genworth Financial, Inc.’s stockholders’ equity |
|
|
1,654 |
|
|
|
1,465 |
|
|
|
762 |
|
|
|
10,194 |
|
|
|
618 |
|
|
|
(1,114 |
) |
|
|
13,579 |
|
| Noncontrolling interests |
|
|
— |
|
|
|
1,066 |
|
|
|
771 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
1,654 |
|
|
|
2,531 |
|
|
|
1,533 |
|
|
|
10,194 |
|
|
|
618 |
|
|
|
(1,114 |
) |
|
|
15,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
$ |
2,282 |
|
|
$ |
4,487 |
|
|
$ |
2,945 |
|
|
$ |
82,331 |
|
|
$ |
11,762 |
|
|
$ |
4,373 |
|
|
$ |
108,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Includes inter-segment eliminations and other businesses that are managed outside the operating segments. |
13
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Deferred Acquisition Costs Rollforward
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
U.S.
Mortgage
Insurance |
|
|
Canada
Mortgage
Insurance |
|
|
Australia
Mortgage
Insurance |
|
|
U.S. Life
Insurance(1) |
|
|
Runoff(2) |
|
|
Corporate and
Other |
|
|
Total |
|
| Unamortized balance as of September 30, 2015 |
|
$ |
21 |
|
|
$ |
109 |
|
|
$ |
35 |
|
|
$ |
4,253 |
|
|
$ |
269 |
|
|
$ |
— |
|
|
$ |
4,687 |
|
| Costs deferred |
|
|
3 |
|
|
|
12 |
|
|
|
3 |
|
|
|
49 |
|
|
|
— |
|
|
|
— |
|
|
|
67 |
|
| Amortization, net of interest accretion |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(4 |
) |
|
|
(170 |
) |
|
|
3 |
|
|
|
— |
|
|
|
(182 |
) |
| Impact of foreign currency translation |
|
|
— |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unamortized balance as of December 31, 2015 |
|
|
22 |
|
|
|
108 |
|
|
|
35 |
|
|
|
4,132 |
|
|
|
272 |
|
|
|
— |
|
|
|
4,569 |
|
| Effect of accumulated net unrealized investment (gains) losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(169 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
(171 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of December 31, 2015 |
|
$ |
22 |
|
|
$ |
108 |
|
|
$ |
35 |
|
|
$ |
3,963 |
|
|
$ |
270 |
|
|
$ |
— |
|
|
$ |
4,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Amortization, net of interest accretion, included $2 million of amortization related to net investment gains for the policyholder account balances. |
| (2) |
Amortization, net of interest accretion, included $8 million of amortization related to net investment gains for the policyholder account balances. |
14
U.S. Mortgage Insurance Segment
15
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Income (Loss) and Sales—U.S. Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
153 |
|
|
$ |
146 |
|
|
$ |
153 |
|
|
$ |
150 |
|
|
$ |
602 |
|
|
$ |
151 |
|
|
$ |
146 |
|
|
$ |
144 |
|
|
$ |
137 |
|
|
$ |
578 |
|
| Net investment income |
|
|
14 |
|
|
|
12 |
|
|
|
13 |
|
|
|
19 |
|
|
|
58 |
|
|
|
11 |
|
|
|
19 |
|
|
|
11 |
|
|
|
18 |
|
|
|
59 |
|
| Net investment gains (losses) |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Policy fees and other income |
|
|
1 |
|
|
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
|
4 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
168 |
|
|
|
161 |
|
|
|
166 |
|
|
|
170 |
|
|
|
665 |
|
|
|
163 |
|
|
|
165 |
|
|
|
156 |
|
|
|
155 |
|
|
|
639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
59 |
|
|
|
63 |
|
|
|
50 |
|
|
|
50 |
|
|
|
222 |
|
|
|
91 |
|
|
|
141 |
|
|
|
62 |
|
|
|
63 |
|
|
|
357 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
42 |
|
|
|
38 |
|
|
|
38 |
|
|
|
37 |
|
|
|
155 |
|
|
|
38 |
|
|
|
35 |
|
|
|
34 |
|
|
|
33 |
|
|
|
140 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
3 |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
10 |
|
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
104 |
|
|
|
104 |
|
|
|
90 |
|
|
|
89 |
|
|
|
387 |
|
|
|
131 |
|
|
|
177 |
|
|
|
98 |
|
|
|
98 |
|
|
|
504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
64 |
|
|
|
57 |
|
|
|
76 |
|
|
|
81 |
|
|
|
278 |
|
|
|
32 |
|
|
|
(12 |
) |
|
|
58 |
|
|
|
57 |
|
|
|
135 |
|
| Provision (benefit) for income taxes |
|
|
23 |
|
|
|
20 |
|
|
|
27 |
|
|
|
29 |
|
|
|
99 |
|
|
|
11 |
|
|
|
(10 |
) |
|
|
19 |
|
|
|
24 |
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
41 |
|
|
|
37 |
|
|
|
49 |
|
|
|
52 |
|
|
|
179 |
|
|
|
21 |
|
|
|
(2 |
) |
|
|
39 |
|
|
|
33 |
|
|
|
91 |
|
| ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment (gains) losses, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME (LOSS) |
|
$ |
41 |
|
|
$ |
37 |
|
|
$ |
49 |
|
|
$ |
52 |
|
|
$ |
179 |
|
|
$ |
21 |
|
|
$ |
(2 |
) |
|
$ |
39 |
|
|
$ |
33 |
|
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (operating income (loss))(1) |
|
|
35.5 |
% |
|
|
35.4 |
% |
|
|
35.6 |
% |
|
|
35.7 |
% |
|
|
35.6 |
% |
|
|
32.5 |
% |
|
|
80.1 |
% |
|
|
32.4 |
% |
|
|
42.0 |
% |
|
|
32.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
| SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Insurance Written (NIW) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
7,800 |
|
|
$ |
9,300 |
|
|
$ |
8,200 |
|
|
$ |
6,300 |
|
|
$ |
31,600 |
|
|
$ |
6,900 |
|
|
$ |
7,500 |
|
|
$ |
6,100 |
|
|
$ |
3,900 |
|
|
$ |
24,400 |
|
| Bulk |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total U.S. Mortgage Insurance NIW |
|
$ |
7,800 |
|
|
$ |
9,300 |
|
|
$ |
8,200 |
|
|
$ |
6,300 |
|
|
$ |
31,600 |
|
|
$ |
6,900 |
|
|
$ |
7,500 |
|
|
$ |
6,100 |
|
|
$ |
3,900 |
|
|
$ |
24,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The operating income (loss) effective tax rate for all pages in this financial supplement was calculated using whole dollars. As a result, the percentages shown may differ from an operating income (loss) effective tax
rate calculated using the rounded numbers in this financial supplement. |
16
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Flow New Insurance Written Metrics—U.S. Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
| |
|
Flow
NIW |
|
|
Premium
Rate (bps) |
|
|
Flow
NIW |
|
|
Premium
Rate (bps) |
|
|
Flow
NIW |
|
|
Premium
Rate (bps) |
|
|
Flow
NIW |
|
|
Premium
Rate (bps) |
|
|
Flow
NIW |
|
|
Premium
Rate (bps) |
|
|
Flow
NIW |
|
|
Premium
Rate (bps) |
|
|
Flow
NIW |
|
|
Premium
Rate (bps) |
|
|
Flow
NIW |
|
|
Premium
Rate (bps) |
|
| Product |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Monthly(1) |
|
$ |
5,900 |
|
|
|
60 |
|
|
$ |
7,000 |
|
|
|
60 |
|
|
$ |
6,500 |
|
|
|
60 |
|
|
$ |
4,400 |
|
|
|
60 |
|
|
$ |
5,100 |
|
|
|
60 |
|
|
$ |
6,100 |
|
|
|
59 |
|
|
$ |
5,300 |
|
|
|
59 |
|
|
$ |
3,400 |
|
|
|
58 |
|
| Single |
|
|
1,900 |
|
|
|
168 |
|
|
|
2,300 |
|
|
|
171 |
|
|
|
1,700 |
|
|
|
172 |
|
|
|
1,900 |
|
|
|
160 |
|
|
|
1,800 |
|
|
|
155 |
|
|
|
1,400 |
|
|
|
194 |
|
|
|
800 |
|
|
|
197 |
|
|
|
500 |
|
|
|
200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Flow |
|
$ |
7,800 |
|
|
|
|
|
|
$ |
9,300 |
|
|
|
|
|
|
$ |
8,200 |
|
|
|
|
|
|
$ |
6,300 |
|
|
|
|
|
|
$ |
6,900 |
|
|
|
|
|
|
$ |
7,500 |
|
|
|
|
|
|
$ |
6,100 |
|
|
|
|
|
|
$ |
3,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Flow
NIW |
|
|
% of
Flow NIW |
|
|
Flow
NIW |
|
|
% of
Flow NIW |
|
|
Flow
NIW |
|
|
% of
Flow NIW |
|
|
Flow
NIW |
|
|
% of
Flow NIW |
|
|
Flow
NIW |
|
|
% of
Flow NIW |
|
|
Flow
NIW |
|
|
% of
Flow NIW |
|
|
Flow
NIW |
|
|
% of
Flow NIW |
|
|
Flow
NIW |
|
|
% of
Flow NIW |
|
| FICO Scores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Over 735 |
|
$ |
4,600 |
|
|
|
59 |
% |
|
$ |
5,500 |
|
|
|
59 |
% |
|
$ |
5,000 |
|
|
|
61 |
% |
|
$ |
3,700 |
|
|
|
59 |
% |
|
$ |
4,100 |
|
|
|
59 |
% |
|
$ |
4,400 |
|
|
|
59 |
% |
|
$ |
3,600 |
|
|
|
59 |
% |
|
$ |
2,400 |
|
|
|
61 |
% |
| 680—735 |
|
|
2,500 |
|
|
|
32 |
|
|
|
3,000 |
|
|
|
32 |
|
|
|
2,500 |
|
|
|
30 |
|
|
|
2,100 |
|
|
|
33 |
|
|
|
2,200 |
|
|
|
32 |
|
|
|
2,400 |
|
|
|
32 |
|
|
|
2,000 |
|
|
|
33 |
|
|
|
1,200 |
|
|
|
31 |
|
| 660—679(2) |
|
|
400 |
|
|
|
5 |
|
|
|
500 |
|
|
|
6 |
|
|
|
400 |
|
|
|
5 |
|
|
|
300 |
|
|
|
5 |
|
|
|
300 |
|
|
|
5 |
|
|
|
400 |
|
|
|
5 |
|
|
|
300 |
|
|
|
5 |
|
|
|
200 |
|
|
|
5 |
|
| 620—659 |
|
|
300 |
|
|
|
4 |
|
|
|
300 |
|
|
|
3 |
|
|
|
300 |
|
|
|
4 |
|
|
|
200 |
|
|
|
3 |
|
|
|
300 |
|
|
|
4 |
|
|
|
300 |
|
|
|
4 |
|
|
|
200 |
|
|
|
3 |
|
|
|
100 |
|
|
|
3 |
|
| <620 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Flow |
|
$ |
7,800 |
|
|
|
100 |
% |
|
$ |
9,300 |
|
|
|
100 |
% |
|
$ |
8,200 |
|
|
|
100 |
% |
|
$ |
6,300 |
|
|
|
100 |
% |
|
$ |
6,900 |
|
|
|
100 |
% |
|
$ |
7,500 |
|
|
|
100 |
% |
|
$ |
6,100 |
|
|
|
100 |
% |
|
$ |
3,900 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan-To-Value Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 95.01% and above |
|
$ |
400 |
|
|
|
5 |
% |
|
$ |
500 |
|
|
|
5 |
% |
|
$ |
400 |
|
|
|
5 |
% |
|
$ |
300 |
|
|
|
5 |
% |
|
$ |
100 |
|
|
|
2 |
% |
|
$ |
200 |
|
|
|
3 |
% |
|
$ |
100 |
|
|
|
2 |
% |
|
$ |
100 |
|
|
|
3 |
% |
| 90.01% to 95.00% |
|
|
4,000 |
|
|
|
51 |
|
|
|
4,900 |
|
|
|
53 |
|
|
|
4,200 |
|
|
|
51 |
|
|
|
3,100 |
|
|
|
49 |
|
|
|
3,500 |
|
|
|
51 |
|
|
|
3,900 |
|
|
|
52 |
|
|
|
3,300 |
|
|
|
54 |
|
|
|
1,900 |
|
|
|
49 |
|
| 85.01% to 90.00% |
|
|
2,500 |
|
|
|
32 |
|
|
|
3,000 |
|
|
|
32 |
|
|
|
2,600 |
|
|
|
32 |
|
|
|
2,000 |
|
|
|
32 |
|
|
|
2,300 |
|
|
|
33 |
|
|
|
2,400 |
|
|
|
32 |
|
|
|
1,900 |
|
|
|
31 |
|
|
|
1,300 |
|
|
|
33 |
|
| 85.00% and below |
|
|
900 |
|
|
|
12 |
|
|
|
900 |
|
|
|
10 |
|
|
|
1,000 |
|
|
|
12 |
|
|
|
900 |
|
|
|
14 |
|
|
|
1,000 |
|
|
|
14 |
|
|
|
1,000 |
|
|
|
13 |
|
|
|
800 |
|
|
|
13 |
|
|
|
600 |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Flow |
|
$ |
7,800 |
|
|
|
100 |
% |
|
$ |
9,300 |
|
|
|
100 |
% |
|
$ |
8,200 |
|
|
|
100 |
% |
|
$ |
6,300 |
|
|
|
100 |
% |
|
$ |
6,900 |
|
|
|
100 |
% |
|
$ |
7,500 |
|
|
|
100 |
% |
|
$ |
6,100 |
|
|
|
100 |
% |
|
$ |
3,900 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Origination |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchase |
|
$ |
6,500 |
|
|
|
83 |
% |
|
$ |
8,100 |
|
|
|
87 |
% |
|
$ |
6,500 |
|
|
|
79 |
% |
|
$ |
4,300 |
|
|
|
68 |
% |
|
$ |
5,300 |
|
|
|
77 |
% |
|
$ |
6,400 |
|
|
|
85 |
% |
|
$ |
5,100 |
|
|
|
84 |
% |
|
$ |
3,000 |
|
|
|
77 |
% |
| Refinance |
|
|
1,300 |
|
|
|
17 |
|
|
|
1,200 |
|
|
|
13 |
|
|
|
1,700 |
|
|
|
21 |
|
|
|
2,000 |
|
|
|
32 |
|
|
|
1,600 |
|
|
|
23 |
|
|
|
1,100 |
|
|
|
15 |
|
|
|
1,000 |
|
|
|
16 |
|
|
|
900 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Flow |
|
$ |
7,800 |
|
|
|
100 |
% |
|
$ |
9,300 |
|
|
|
100 |
% |
|
$ |
8,200 |
|
|
|
100 |
% |
|
$ |
6,300 |
|
|
|
100 |
% |
|
$ |
6,900 |
|
|
|
100 |
% |
|
$ |
7,500 |
|
|
|
100 |
% |
|
$ |
6,100 |
|
|
|
100 |
% |
|
$ |
3,900 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Includes loans with annual and split payment types. |
| (2) |
Loans with unknown FICO scores are included in the 660-679 category. |
17
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Other Metrics—U.S. Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| Net Premiums Written |
|
$ |
171 |
|
|
$ |
171 |
|
|
$ |
170 |
|
|
$ |
170 |
|
|
$ |
682 |
|
|
$ |
171 |
|
|
$ |
162 |
|
|
$ |
151 |
|
|
$ |
144 |
|
|
$ |
628 |
|
|
|
|
|
|
|
|
|
|
|
|
| New Risk Written |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
1,964 |
|
|
$ |
2,364 |
|
|
$ |
2,040 |
|
|
$ |
1,557 |
|
|
$ |
7,925 |
|
|
$ |
1,703 |
|
|
$ |
1,878 |
|
|
$ |
1,521 |
|
|
$ |
960 |
|
|
$ |
6,062 |
|
| Bulk |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Primary |
|
|
1,964 |
|
|
|
2,364 |
|
|
|
2,040 |
|
|
|
1,557 |
|
|
|
7,925 |
|
|
|
1,703 |
|
|
|
1,878 |
|
|
|
1,521 |
|
|
|
960 |
|
|
|
6,062 |
|
| Pool |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total New Risk Written |
|
$ |
1,964 |
|
|
$ |
2,364 |
|
|
$ |
2,040 |
|
|
$ |
1,557 |
|
|
$ |
7,925 |
|
|
$ |
1,703 |
|
|
$ |
1,878 |
|
|
$ |
1,521 |
|
|
$ |
960 |
|
|
$ |
6,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Primary Insurance In-Force |
|
$ |
122,400 |
|
|
$ |
120,400 |
|
|
$ |
117,100 |
|
|
$ |
115,200 |
|
|
|
|
|
|
$ |
114,400 |
|
|
$ |
112,400 |
|
|
$ |
110,500 |
|
|
$ |
109,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Risk In-Force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
30,616 |
|
|
$ |
30,001 |
|
|
$ |
29,026 |
|
|
$ |
28,415 |
|
|
|
|
|
|
$ |
28,112 |
|
|
$ |
27,507 |
|
|
$ |
26,880 |
|
|
$ |
26,405 |
|
|
|
|
|
| Bulk(1) |
|
|
326 |
|
|
|
349 |
|
|
|
360 |
|
|
|
387 |
|
|
|
|
|
|
|
402 |
|
|
|
419 |
|
|
|
434 |
|
|
|
442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Primary |
|
|
30,942 |
|
|
|
30,350 |
|
|
|
29,386 |
|
|
|
28,802 |
|
|
|
|
|
|
|
28,514 |
|
|
|
27,926 |
|
|
|
27,314 |
|
|
|
26,847 |
|
|
|
|
|
| Pool |
|
|
120 |
|
|
|
129 |
|
|
|
137 |
|
|
|
142 |
|
|
|
|
|
|
|
151 |
|
|
|
159 |
|
|
|
163 |
|
|
|
171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Risk In-Force |
|
$ |
31,062 |
|
|
$ |
30,479 |
|
|
$ |
29,523 |
|
|
$ |
28,944 |
|
|
|
|
|
|
$ |
28,665 |
|
|
$ |
28,085 |
|
|
$ |
27,477 |
|
|
$ |
27,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Primary Risk In-Force That Is GSE Conforming |
|
|
96 |
% |
|
|
97 |
% |
|
|
97 |
% |
|
|
97 |
% |
|
|
|
|
|
|
97 |
% |
|
|
97 |
% |
|
|
97 |
% |
|
|
97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Basis Expense
Ratio(2) |
|
|
29 |
% |
|
|
28 |
% |
|
|
26 |
% |
|
|
26 |
% |
|
|
27 |
% |
|
|
26 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Expense Ratio(3) |
|
|
26 |
% |
|
|
24 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
24 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
24 |
% |
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Flow Persistency |
|
|
81 |
% |
|
|
80 |
% |
|
|
79 |
% |
|
|
81 |
% |
|
|
|
|
|
|
83 |
% |
|
|
80 |
% |
|
|
83 |
% |
|
|
85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Risk To Capital Ratio(4) |
|
|
16.3:1 |
|
|
|
14.3:1 |
|
|
|
13.7:1 |
|
|
|
14.1:1 |
|
|
|
|
|
|
|
14.5:1 |
|
|
|
15.4:1 |
|
|
|
14.6:1 |
|
|
|
18.7:1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Primary Loan Size (in thousands) |
|
$ |
188 |
|
|
$ |
186 |
|
|
$ |
184 |
|
|
$ |
182 |
|
|
|
|
|
|
$ |
181 |
|
|
$ |
180 |
|
|
$ |
178 |
|
|
$ |
176 |
|
|
|
|
|
The expense ratios included above were calculated using whole dollars and may be different than the ratios calculated using
the rounded numbers included herein.
| (1) |
As of December 31, 2015, 90% of the bulk risk in-force was related to loans financed by lenders who participated in the mortgage programs sponsored by the Federal Home Loan Banks. |
| (2) |
The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.
|
| (3) |
The ratio of an insurer’s general expenses to net written premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.
|
| (4) |
Certain states limit a private mortgage insurer’s risk in-force to 25 times the total of the insurer’s policyholders’ surplus plus the statutory contingency reserve, commonly known as the “risk to
capital” requirement. The current period risk to capital ratio is an estimate due to the timing of the filing of statutory statements and is prepared consistent with the presentation of the statutory financial statements in the combined annual
statement of the U.S. mortgage insurance business. |
18
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Loss Metrics—U.S. Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| Paid Claims |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Direct(1) |
|
$ |
158 |
|
|
$ |
98 |
|
|
$ |
131 |
|
|
$ |
130 |
|
|
$ |
517 |
|
|
$ |
142 |
|
|
$ |
148 |
|
|
$ |
148 |
|
|
$ |
178 |
|
|
$ |
616 |
|
| Assumed(2) |
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
|
|
13 |
|
|
|
3 |
|
|
|
4 |
|
|
|
6 |
|
|
|
6 |
|
|
|
19 |
|
| Ceded |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(16 |
) |
|
|
(18 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(15 |
) |
|
|
(26 |
) |
| Loss adjustment expenses |
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
13 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Flow |
|
|
161 |
|
|
|
104 |
|
|
|
137 |
|
|
|
123 |
|
|
|
525 |
|
|
|
145 |
|
|
|
153 |
|
|
|
154 |
|
|
|
174 |
|
|
|
626 |
|
| Bulk |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
6 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Primary |
|
|
162 |
|
|
|
105 |
|
|
|
139 |
|
|
|
125 |
|
|
|
531 |
|
|
|
147 |
|
|
|
155 |
|
|
|
156 |
|
|
|
176 |
|
|
|
634 |
|
| Pool |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Paid Claims |
|
$ |
163 |
|
|
$ |
105 |
|
|
$ |
140 |
|
|
$ |
126 |
|
|
$ |
534 |
|
|
$ |
149 |
|
|
$ |
156 |
|
|
$ |
157 |
|
|
$ |
177 |
|
|
$ |
639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Paid Claim (in thousands)(3) |
|
$ |
63.6 |
|
|
$ |
54.0 |
|
|
$ |
50.8 |
|
|
$ |
46.5 |
|
|
|
|
|
|
$ |
46.6 |
|
|
$ |
47.6 |
|
|
$ |
47.2 |
|
|
$ |
43.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Reserve Per Delinquency (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
27.2 |
|
|
$ |
29.4 |
|
|
$ |
30.6 |
|
|
$ |
31.0 |
|
|
|
|
|
|
$ |
30.2 |
|
|
$ |
30.7 |
|
|
$ |
30.0 |
|
|
$ |
30.3 |
|
|
|
|
|
| Bulk loans with established reserve |
|
|
19.9 |
|
|
|
20.0 |
|
|
|
21.5 |
|
|
|
21.2 |
|
|
|
|
|
|
|
20.4 |
|
|
|
20.5 |
|
|
|
22.5 |
|
|
|
19.2 |
|
|
|
|
|
| Bulk loans with no
reserve(4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reserves: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow direct case |
|
$ |
775 |
|
|
$ |
870 |
|
|
$ |
909 |
|
|
$ |
992 |
|
|
|
|
|
|
$ |
1,065 |
|
|
$ |
1,122 |
|
|
$ |
1,083 |
|
|
$ |
1,172 |
|
|
|
|
|
| Bulk direct case |
|
|
17 |
|
|
|
17 |
|
|
|
18 |
|
|
|
20 |
|
|
|
|
|
|
|
21 |
|
|
|
22 |
|
|
|
24 |
|
|
|
25 |
|
|
|
|
|
| Assumed(2) |
|
|
8 |
|
|
|
9 |
|
|
|
12 |
|
|
|
15 |
|
|
|
|
|
|
|
21 |
|
|
|
21 |
|
|
|
24 |
|
|
|
29 |
|
|
|
|
|
| All other(5) |
|
|
49 |
|
|
|
57 |
|
|
|
57 |
|
|
|
60 |
|
|
|
|
|
|
|
73 |
|
|
|
74 |
|
|
|
125 |
|
|
|
129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Reserves |
|
$ |
849 |
|
|
$ |
953 |
|
|
$ |
996 |
|
|
$ |
1,087 |
|
|
|
|
|
|
$ |
1,180 |
|
|
$ |
1,239 |
|
|
$ |
1,256 |
|
|
$ |
1,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning Reserves |
|
$ |
953 |
|
|
$ |
996 |
|
|
$ |
1,087 |
|
|
$ |
1,180 |
|
|
$ |
1,180 |
|
|
$ |
1,239 |
|
|
$ |
1,256 |
|
|
$ |
1,355 |
|
|
$ |
1,482 |
|
|
$ |
1,482 |
|
| Paid claims(1) |
|
|
(164 |
) |
|
|
(105 |
) |
|
|
(141 |
) |
|
|
(142 |
) |
|
|
(552 |
) |
|
|
(153 |
) |
|
|
(158 |
) |
|
|
(162 |
) |
|
|
(192 |
) |
|
|
(665 |
) |
| Increase in reserves |
|
|
60 |
|
|
|
62 |
|
|
|
50 |
|
|
|
49 |
|
|
|
221 |
|
|
|
94 |
|
|
|
141 |
|
|
|
63 |
|
|
|
65 |
|
|
|
363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending Reserves |
|
$ |
849 |
|
|
$ |
953 |
|
|
$ |
996 |
|
|
$ |
1,087 |
|
|
$ |
849 |
|
|
$ |
1,180 |
|
|
$ |
1,239 |
|
|
$ |
1,256 |
|
|
$ |
1,355 |
|
|
$ |
1,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning Reinsurance Recoverable(6) |
|
$ |
6 |
|
|
$ |
6 |
|
|
$ |
7 |
|
|
$ |
24 |
|
|
$ |
24 |
|
|
$ |
25 |
|
|
$ |
27 |
|
|
$ |
31 |
|
|
$ |
44 |
|
|
$ |
44 |
|
| Ceded paid claims |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(16 |
) |
|
|
(18 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(26 |
) |
| Increase in recoverable |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
3 |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending Reinsurance Recoverable |
|
$ |
5 |
|
|
$ |
6 |
|
|
$ |
6 |
|
|
$ |
7 |
|
|
$ |
5 |
|
|
$ |
24 |
|
|
$ |
25 |
|
|
$ |
27 |
|
|
$ |
31 |
|
|
$ |
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss Ratio(7) |
|
|
39 |
% |
|
|
43 |
% |
|
|
33 |
% |
|
|
33 |
% |
|
|
37 |
% |
|
|
61 |
% |
|
|
97 |
% |
|
|
43 |
% |
|
|
46 |
% |
|
|
62 |
% |
The loss ratio included above was calculated using whole dollars and may be different than the ratio calculated using the
rounded numbers included herein.
| (1) |
Direct paid claims and paid claims in the fourth quarter of 2015 include payment of a previously disclosed negotiated servicer settlement reached in 2014 and payment in relation to an agreement on non-performing loans. |
| (2) |
Assumed is comprised of reinsurance arrangements with state governmental housing finance agencies. |
| (3) |
Average paid claim in the fourth quarter of 2015 reflects the non-recurring payment to extinguish the risk on prior paid claims pursuant to a previously disclosed
servicer settlement reached in 2014. |
| (4) |
Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes currently have no
risk for claim. |
| (5) |
Other includes loss adjustment expenses, pool and incurred but not reported reserves. |
| (6) |
Reinsurance recoverable excludes ceded unearned premium recoveries and amounts for which cash proceeds have not yet been received. |
| (7) |
The ratio of incurred losses and loss adjustment expenses to net earned premiums. Lender settlements of $53 million in the third quarter of 2014 increased the loss
ratio by 37 percentage points and 9 percentage points for the three months ended September 30, 2014 and the twelve months ended December 31, 2014, respectively. |
19
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Delinquency Metrics—U.S. Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| Number of Primary Delinquencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
|
30,416 |
|
|
|
31,678 |
|
|
|
31,876 |
|
|
|
34,220 |
|
|
|
|
|
|
|
38,177 |
|
|
|
39,485 |
|
|
|
40,897 |
|
|
|
43,733 |
|
|
|
|
|
| Bulk loans with an established reserve |
|
|
889 |
|
|
|
917 |
|
|
|
908 |
|
|
|
984 |
|
|
|
|
|
|
|
1,109 |
|
|
|
1,147 |
|
|
|
1,147 |
|
|
|
1,434 |
|
|
|
|
|
| Bulk loans with no reserve(1) |
|
|
358 |
|
|
|
394 |
|
|
|
415 |
|
|
|
461 |
|
|
|
|
|
|
|
500 |
|
|
|
515 |
|
|
|
561 |
|
|
|
694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Number of Primary Delinquencies |
|
|
31,663 |
|
|
|
32,989 |
|
|
|
33,199 |
|
|
|
35,665 |
|
|
|
|
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning Number of Primary Delinquencies |
|
|
32,989 |
|
|
|
33,199 |
|
|
|
35,665 |
|
|
|
39,786 |
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
|
|
51,459 |
|
|
|
51,459 |
|
| New delinquencies |
|
|
10,043 |
|
|
|
10,192 |
|
|
|
9,061 |
|
|
|
9,554 |
|
|
|
38,850 |
|
|
|
10,826 |
|
|
|
11,574 |
|
|
|
10,568 |
|
|
|
12,100 |
|
|
|
45,068 |
|
| Delinquency cures |
|
|
(8,835 |
) |
|
|
(8,484 |
) |
|
|
(8,800 |
) |
|
|
(10,988 |
) |
|
|
(37,107 |
) |
|
|
(9,030 |
) |
|
|
(9,790 |
) |
|
|
(10,545 |
) |
|
|
(13,678 |
) |
|
|
(43,043 |
) |
| Paid claims |
|
|
(2,534 |
) |
|
|
(1,918 |
) |
|
|
(2,727 |
) |
|
|
(2,687 |
) |
|
|
(9,866 |
) |
|
|
(3,157 |
) |
|
|
(3,242 |
) |
|
|
(3,279 |
) |
|
|
(4,020 |
) |
|
|
(13,698 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending Number of Primary Delinquencies |
|
|
31,663 |
|
|
|
32,989 |
|
|
|
33,199 |
|
|
|
35,665 |
|
|
|
31,663 |
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
|
|
39,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Composition of Cures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported delinquent and cured-intraquarter |
|
|
1,740 |
|
|
|
1,805 |
|
|
|
1,658 |
|
|
|
2,271 |
|
|
|
|
|
|
|
1,434 |
|
|
|
2,093 |
|
|
|
1,993 |
|
|
|
3,141 |
|
|
|
|
|
| Number of missed payments delinquent prior to cure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3 payments or less |
|
|
5,005 |
|
|
|
4,630 |
|
|
|
4,260 |
|
|
|
6,112 |
|
|
|
|
|
|
|
5,340 |
|
|
|
5,202 |
|
|
|
5,335 |
|
|
|
7,252 |
|
|
|
|
|
| 4 - 11 payments |
|
|
1,330 |
|
|
|
1,487 |
|
|
|
2,250 |
|
|
|
1,912 |
|
|
|
|
|
|
|
1,613 |
|
|
|
1,772 |
|
|
|
2,253 |
|
|
|
2,391 |
|
|
|
|
|
| 12 payments or more |
|
|
760 |
|
|
|
562 |
|
|
|
632 |
|
|
|
693 |
|
|
|
|
|
|
|
643 |
|
|
|
723 |
|
|
|
964 |
|
|
|
894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
8,835 |
|
|
|
8,484 |
|
|
|
8,800 |
|
|
|
10,988 |
|
|
|
|
|
|
|
9,030 |
|
|
|
9,790 |
|
|
|
10,545 |
|
|
|
13,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Primary Delinquencies by Missed Payment Status |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3 payments or less |
|
|
10,487 |
|
|
|
10,226 |
|
|
|
9,432 |
|
|
|
9,271 |
|
|
|
|
|
|
|
11,318 |
|
|
|
11,478 |
|
|
|
11,228 |
|
|
|
11,351 |
|
|
|
|
|
| 4 - 11 payments |
|
|
7,577 |
|
|
|
7,376 |
|
|
|
7,824 |
|
|
|
9,086 |
|
|
|
|
|
|
|
9,684 |
|
|
|
9,610 |
|
|
|
9,913 |
|
|
|
11,463 |
|
|
|
|
|
| 12 payments or more |
|
|
13,599 |
|
|
|
15,387 |
|
|
|
15,943 |
|
|
|
17,308 |
|
|
|
|
|
|
|
18,784 |
|
|
|
20,059 |
|
|
|
21,464 |
|
|
|
23,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Primary Delinquencies |
|
|
31,663 |
|
|
|
32,989 |
|
|
|
33,199 |
|
|
|
35,665 |
|
|
|
|
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow Delinquencies and Percentage
Reserved by Payment Status |
|
Delinquencies |
|
|
Direct Case
Reserves(2) |
|
|
Risk In-Force |
|
|
Reserves as % of
Risk In-Force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3 payments or less in default |
|
|
10,103 |
|
|
$ |
52 |
|
|
$ |
405 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4 - 11 payments in default |
|
|
7,366 |
|
|
|
180 |
|
|
|
307 |
|
|
|
59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12 payments or more in default |
|
|
12,947 |
|
|
|
543 |
|
|
|
638 |
|
|
|
85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
30,416 |
|
|
$ |
775 |
|
|
$ |
1,350 |
|
|
|
57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow Delinquencies and Percentage
Reserved by Payment Status |
|
Delinquencies |
|
|
Direct Case
Reserves(2) |
|
|
Risk In-Force |
|
|
Reserves as % of
Risk In-Force |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3 payments or less in default |
|
|
10,849 |
|
|
$ |
76 |
|
|
$ |
426 |
|
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4 - 11 payments in default |
|
|
9,368 |
|
|
|
238 |
|
|
|
383 |
|
|
|
62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12 payments or more in default |
|
|
17,960 |
|
|
|
751 |
|
|
|
895 |
|
|
|
84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
38,177 |
|
|
$ |
1,065 |
|
|
$ |
1,704 |
|
|
|
63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Reserves were not established on loans where the company was in a secondary loss position due to an existing deductible and the company believes currently have no risk for claim. |
| (2) |
Direct flow case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves. |
20
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Portfolio Quality Metrics—U.S. Mortgage Insurance Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
| Primary Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Primary loans in-force |
|
|
651,668 |
|
|
|
647,126 |
|
|
|
636,640 |
|
|
|
631,591 |
|
|
|
630,852 |
|
|
|
624,850 |
|
|
|
620,415 |
|
|
|
618,442 |
|
| Primary delinquent loans |
|
|
31,663 |
|
|
|
32,989 |
|
|
|
33,199 |
|
|
|
35,665 |
|
|
|
39,786 |
|
|
|
41,147 |
|
|
|
42,605 |
|
|
|
45,861 |
|
| Primary delinquency rate |
|
|
4.86 |
% |
|
|
5.10 |
% |
|
|
5.21 |
% |
|
|
5.65 |
% |
|
|
6.31 |
% |
|
|
6.59 |
% |
|
|
6.87 |
% |
|
|
7.42 |
% |
|
|
|
|
|
|
|
|
|
| Flow loans in-force |
|
|
627,349 |
|
|
|
620,430 |
|
|
|
608,615 |
|
|
|
601,472 |
|
|
|
599,206 |
|
|
|
591,823 |
|
|
|
585,719 |
|
|
|
582,553 |
|
| Flow delinquent loans |
|
|
30,416 |
|
|
|
31,678 |
|
|
|
31,876 |
|
|
|
34,220 |
|
|
|
38,177 |
|
|
|
39,485 |
|
|
|
40,897 |
|
|
|
43,733 |
|
| Flow delinquency rate |
|
|
4.85 |
% |
|
|
5.11 |
% |
|
|
5.24 |
% |
|
|
5.69 |
% |
|
|
6.37 |
% |
|
|
6.67 |
% |
|
|
6.98 |
% |
|
|
7.51 |
% |
|
|
|
|
|
|
|
|
|
| Bulk loans in-force |
|
|
24,319 |
|
|
|
26,696 |
|
|
|
28,025 |
|
|
|
30,119 |
|
|
|
31,646 |
|
|
|
33,027 |
|
|
|
34,696 |
|
|
|
35,889 |
|
| Bulk delinquent loans |
|
|
1,247 |
|
|
|
1,311 |
|
|
|
1,323 |
|
|
|
1,445 |
|
|
|
1,609 |
|
|
|
1,662 |
|
|
|
1,708 |
|
|
|
2,128 |
|
| Bulk delinquency rate |
|
|
5.13 |
% |
|
|
4.91 |
% |
|
|
4.72 |
% |
|
|
4.80 |
% |
|
|
5.08 |
% |
|
|
5.03 |
% |
|
|
4.92 |
% |
|
|
5.93 |
% |
|
|
|
|
|
|
|
|
|
| A minus and sub-prime loans in-force |
|
|
28,332 |
|
|
|
29,745 |
|
|
|
31,051 |
|
|
|
33,805 |
|
|
|
33,529 |
|
|
|
34,825 |
|
|
|
36,219 |
|
|
|
37,714 |
|
| A minus and sub-prime delinquent loans |
|
|
6,448 |
|
|
|
6,642 |
|
|
|
6,530 |
|
|
|
7,019 |
|
|
|
7,851 |
|
|
|
8,017 |
|
|
|
8,238 |
|
|
|
8,789 |
|
| A minus and sub-prime delinquency rate |
|
|
22.76 |
% |
|
|
22.33 |
% |
|
|
21.03 |
% |
|
|
20.76 |
% |
|
|
23.42 |
% |
|
|
23.02 |
% |
|
|
22.74 |
% |
|
|
23.30 |
% |
|
|
|
|
|
|
|
|
|
| Pool Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pool loans in-force |
|
|
6,620 |
|
|
|
7,284 |
|
|
|
7,709 |
|
|
|
7,979 |
|
|
|
8,282 |
|
|
|
10,125 |
|
|
|
10,336 |
|
|
|
10,710 |
|
| Pool delinquent loans |
|
|
386 |
|
|
|
426 |
|
|
|
447 |
|
|
|
468 |
|
|
|
521 |
|
|
|
549 |
|
|
|
546 |
|
|
|
575 |
|
| Pool delinquency rate |
|
|
5.83 |
% |
|
|
5.85 |
% |
|
|
5.80 |
% |
|
|
5.87 |
% |
|
|
6.29 |
% |
|
|
5.42 |
% |
|
|
5.28 |
% |
|
|
5.37 |
% |
|
|
|
|
|
|
|
|
|
| Primary Risk In-Force by Credit Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Over 735 |
|
|
53 |
% |
|
|
52 |
% |
|
|
52 |
% |
|
|
52 |
% |
|
|
51 |
% |
|
|
51 |
% |
|
|
51 |
% |
|
|
50 |
% |
| 680-735 |
|
|
31 |
% |
|
|
31 |
% |
|
|
31 |
% |
|
|
31 |
% |
|
|
31 |
% |
|
|
30 |
% |
|
|
30 |
% |
|
|
30 |
% |
| 660-679(1) |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
8 |
% |
| 620-659 |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
8 |
% |
|
|
8 |
% |
|
|
8 |
% |
|
|
8 |
% |
| < 620 |
|
|
2 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
| (1) |
Loans with unknown FICO scores are included in the 660-679 category. |
21
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Portfolio Quality Metrics—U.S. Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2015 |
|
| Policy Year |
|
Average
Rate(1) |
|
|
% of Total
Reserves(2) |
|
|
Primary
Insurance In-Force |
|
|
% of Total |
|
|
Primary
Risk In-Force |
|
|
% of Total |
|
|
Deliquency
Rate |
|
| 2004 and prior |
|
|
6.06 |
% |
|
|
11.9 |
% |
|
$ |
4,004 |
|
|
|
3.3 |
% |
|
$ |
901 |
|
|
|
2.9 |
% |
|
|
14.91 |
% |
| 2005 |
|
|
5.66 |
% |
|
|
11.7 |
|
|
|
3,539 |
|
|
|
2.9 |
|
|
|
959 |
|
|
|
3.1 |
|
|
|
13.88 |
% |
| 2006 |
|
|
5.86 |
% |
|
|
17.5 |
|
|
|
5,817 |
|
|
|
4.7 |
|
|
|
1,511 |
|
|
|
4.9 |
|
|
|
13.86 |
% |
| 2007 |
|
|
5.77 |
% |
|
|
37.7 |
|
|
|
14,873 |
|
|
|
12.1 |
|
|
|
3,744 |
|
|
|
12.1 |
|
|
|
12.39 |
% |
| 2008 |
|
|
5.30 |
% |
|
|
16.8 |
|
|
|
12,744 |
|
|
|
10.4 |
|
|
|
3,230 |
|
|
|
10.4 |
|
|
|
6.84 |
% |
| 2009 |
|
|
4.95 |
% |
|
|
0.6 |
|
|
|
1,814 |
|
|
|
1.5 |
|
|
|
423 |
|
|
|
1.4 |
|
|
|
2.14 |
% |
| 2010 |
|
|
4.69 |
% |
|
|
0.6 |
|
|
|
2,291 |
|
|
|
1.9 |
|
|
|
575 |
|
|
|
1.9 |
|
|
|
1.77 |
% |
| 2011 |
|
|
4.52 |
% |
|
|
0.5 |
|
|
|
3,257 |
|
|
|
2.7 |
|
|
|
835 |
|
|
|
2.7 |
|
|
|
1.37 |
% |
| 2012 |
|
|
3.82 |
% |
|
|
0.6 |
|
|
|
8,321 |
|
|
|
6.8 |
|
|
|
2,163 |
|
|
|
7.0 |
|
|
|
0.66 |
% |
| 2013 |
|
|
4.00 |
% |
|
|
0.8 |
|
|
|
14,630 |
|
|
|
12.0 |
|
|
|
3,755 |
|
|
|
12.1 |
|
|
|
0.59 |
% |
| 2014 |
|
|
4.40 |
% |
|
|
1.1 |
|
|
|
20,219 |
|
|
|
16.5 |
|
|
|
5,106 |
|
|
|
16.5 |
|
|
|
0.55 |
% |
| 2015 |
|
|
4.10 |
% |
|
|
0.2 |
|
|
|
30,866 |
|
|
|
25.2 |
|
|
|
7,740 |
|
|
|
25.0 |
|
|
|
0.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
4.77 |
% |
|
|
100.0 |
% |
|
$ |
122,375 |
|
|
|
100.0 |
% |
|
$ |
30,942 |
|
|
|
100.0 |
% |
|
|
4.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
December 31, 2014 |
|
|
|
|
| |
|
Primary
Risk In-Force |
|
|
Primary
Delinquency Rate |
|
|
Primary
Risk In-Force |
|
|
Primary
Delinquency Rate |
|
|
Primary
Risk In-Force |
|
|
Primary
Delinquency Rate |
|
|
|
|
| Lender concentration (by original applicant) |
|
$ |
30,942 |
|
|
|
4.86 |
% |
|
$ |
30,350 |
|
|
|
5.10 |
% |
|
$ |
28,514 |
|
|
|
6.31 |
% |
|
|
|
|
| Top 10 lenders |
|
|
11,536 |
|
|
|
6.47 |
% |
|
|
11,774 |
|
|
|
6.68 |
% |
|
|
12,306 |
|
|
|
7.65 |
% |
|
|
|
|
| Top 20 lenders |
|
|
14,201 |
|
|
|
5.68 |
% |
|
|
14,233 |
|
|
|
5.93 |
% |
|
|
14,322 |
|
|
|
7.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Loan-to-value ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 95.01% and above |
|
$ |
6,309 |
|
|
|
8.17 |
% |
|
$ |
6,429 |
|
|
|
8.15 |
% |
|
$ |
6,763 |
|
|
|
9.07 |
% |
|
|
|
|
| 90.01% to 95.00% |
|
|
14,425 |
|
|
|
3.36 |
% |
|
|
13,841 |
|
|
|
3.66 |
% |
|
|
12,008 |
|
|
|
4.99 |
% |
|
|
|
|
| 80.01% to 90.00% |
|
|
9,900 |
|
|
|
4.57 |
% |
|
|
9,761 |
|
|
|
4.85 |
% |
|
|
9,383 |
|
|
|
6.03 |
% |
|
|
|
|
| 80.00% and below |
|
|
308 |
|
|
|
3.39 |
% |
|
|
319 |
|
|
|
3.44 |
% |
|
|
360 |
|
|
|
3.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
30,942 |
|
|
|
4.86 |
% |
|
$ |
30,350 |
|
|
|
5.10 |
% |
|
$ |
28,514 |
|
|
|
6.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan grade |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prime |
|
$ |
29,874 |
|
|
|
4.05 |
% |
|
$ |
29,233 |
|
|
|
4.27 |
% |
|
$ |
27,262 |
|
|
|
5.35 |
% |
|
|
|
|
| A minus and sub-prime |
|
|
1,068 |
|
|
|
22.76 |
% |
|
|
1,117 |
|
|
|
22.33 |
% |
|
|
1,252 |
|
|
|
23.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
30,942 |
|
|
|
4.86 |
% |
|
$ |
30,350 |
|
|
|
5.10 |
% |
|
$ |
28,514 |
|
|
|
6.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Average Annual Mortgage Interest Rate. |
| (2) |
Total reserves were $849 million as of December 31, 2015. |
22
Canada Mortgage Insurance Segment
23
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Income and Sales—Canada Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
115 |
|
|
$ |
116 |
|
|
$ |
116 |
|
|
$ |
119 |
|
|
$ |
466 |
|
|
$ |
127 |
|
|
$ |
130 |
|
|
$ |
128 |
|
|
$ |
130 |
|
|
$ |
515 |
|
| Net investment income |
|
|
31 |
|
|
|
32 |
|
|
|
33 |
|
|
|
34 |
|
|
|
130 |
|
|
|
38 |
|
|
|
39 |
|
|
|
39 |
|
|
|
39 |
|
|
|
155 |
|
| Net investment gains (losses) |
|
|
(11 |
) |
|
|
(23 |
) |
|
|
20 |
|
|
|
(18 |
) |
|
|
(32 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
12 |
|
|
|
(3 |
) |
|
|
(2 |
) |
| Policy fees and other income |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
135 |
|
|
|
124 |
|
|
|
169 |
|
|
|
136 |
|
|
|
564 |
|
|
|
158 |
|
|
|
163 |
|
|
|
180 |
|
|
|
168 |
|
|
|
669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
26 |
|
|
|
24 |
|
|
|
21 |
|
|
|
25 |
|
|
|
96 |
|
|
|
33 |
|
|
|
28 |
|
|
|
15 |
|
|
|
26 |
|
|
|
102 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
16 |
|
|
|
16 |
|
|
|
22 |
|
|
|
12 |
|
|
|
66 |
|
|
|
23 |
|
|
|
18 |
|
|
|
28 |
|
|
|
21 |
|
|
|
90 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
36 |
|
|
|
9 |
|
|
|
10 |
|
|
|
9 |
|
|
|
10 |
|
|
|
38 |
|
| Interest expense |
|
|
4 |
|
|
|
5 |
|
|
|
4 |
|
|
|
5 |
|
|
|
18 |
|
|
|
5 |
|
|
|
5 |
|
|
|
6 |
|
|
|
5 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
55 |
|
|
|
54 |
|
|
|
56 |
|
|
|
51 |
|
|
|
216 |
|
|
|
70 |
|
|
|
61 |
|
|
|
58 |
|
|
|
62 |
|
|
|
251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
80 |
|
|
|
70 |
|
|
|
113 |
|
|
|
85 |
|
|
|
348 |
|
|
|
88 |
|
|
|
102 |
|
|
|
122 |
|
|
|
106 |
|
|
|
418 |
|
| Provision for income taxes |
|
|
20 |
|
|
|
17 |
|
|
|
31 |
|
|
|
22 |
|
|
|
90 |
|
|
|
24 |
|
|
|
24 |
|
|
|
32 |
|
|
|
31 |
|
|
|
111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME FROM CONTINUING OPERATIONS |
|
|
60 |
|
|
|
53 |
|
|
|
82 |
|
|
|
63 |
|
|
|
258 |
|
|
|
64 |
|
|
|
78 |
|
|
|
90 |
|
|
|
75 |
|
|
|
307 |
|
| Less: net income attributable to noncontrolling interests |
|
|
27 |
|
|
|
24 |
|
|
|
38 |
|
|
|
29 |
|
|
|
118 |
|
|
|
30 |
|
|
|
34 |
|
|
|
41 |
|
|
|
35 |
|
|
|
140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS |
|
|
33 |
|
|
|
29 |
|
|
|
44 |
|
|
|
34 |
|
|
|
140 |
|
|
|
34 |
|
|
|
44 |
|
|
|
49 |
|
|
|
40 |
|
|
|
167 |
|
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTMENTS TO INCOME FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON
STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment (gains) losses, net |
|
|
4 |
|
|
|
9 |
|
|
|
(7 |
) |
|
|
6 |
|
|
|
12 |
|
|
|
2 |
|
|
|
2 |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
1 |
|
| (Gains) losses on early extinguishment of debt, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING
INCOME(1) |
|
$ |
37 |
|
|
$ |
38 |
|
|
$ |
37 |
|
|
$ |
40 |
|
|
$ |
152 |
|
|
$ |
36 |
|
|
$ |
46 |
|
|
$ |
47 |
|
|
$ |
41 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (operating income) |
|
|
27.1 |
% |
|
|
27.2 |
% |
|
|
27.3 |
% |
|
|
27.9 |
% |
|
|
27.4 |
% |
|
|
29.4 |
% |
|
|
21.2 |
% |
|
|
26.3 |
% |
|
|
31.6 |
% |
|
|
27.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
| SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Insurance Written (NIW) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
4,700 |
|
|
$ |
6,600 |
|
|
$ |
5,400 |
|
|
$ |
3,300 |
|
|
$ |
20,000 |
|
|
$ |
5,500 |
|
|
$ |
6,800 |
|
|
$ |
5,000 |
|
|
$ |
2,900 |
|
|
$ |
20,200 |
|
| Bulk |
|
|
7,300 |
|
|
|
4,800 |
|
|
|
3,300 |
|
|
|
5,000 |
|
|
|
20,400 |
|
|
|
2,300 |
|
|
|
5,600 |
|
|
|
7,500 |
|
|
|
2,900 |
|
|
|
18,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Canada NIW(2) |
|
$ |
12,000 |
|
|
$ |
11,400 |
|
|
$ |
8,700 |
|
|
$ |
8,300 |
|
|
$ |
40,400 |
|
|
$ |
7,800 |
|
|
$ |
12,400 |
|
|
$ |
12,500 |
|
|
$ |
5,800 |
|
|
$ |
38,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Net operating income for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $45 million and $177 million for the three and twelve months ended December 31, 2015, respectively.
|
| (2) |
New insurance written for the Canadian platform adjusted for foreign exchange as compared to the prior year period was $14,100 million and $46,400 million for the three and twelve months ended December 31, 2015,
respectively. |
24
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Selected Key Performance Measures—Canada Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| Net Premiums Written |
|
$ |
162 |
|
|
$ |
204 |
|
|
$ |
166 |
|
|
$ |
109 |
|
|
$ |
641 |
|
|
$ |
160 |
|
|
$ |
200 |
|
|
$ |
146 |
|
|
$ |
77 |
|
|
$ |
583 |
|
| Loss Ratio(1) |
|
|
23 |
% |
|
|
21 |
% |
|
|
17 |
% |
|
|
22 |
% |
|
|
21 |
% |
|
|
26 |
% |
|
|
21 |
% |
|
|
12 |
% |
|
|
20 |
% |
|
|
20 |
% |
| GAAP Basis Expense
Ratio(2) |
|
|
22 |
% |
|
|
22 |
% |
|
|
27 |
% |
|
|
18 |
% |
|
|
22 |
% |
|
|
26 |
% |
|
|
22 |
% |
|
|
29 |
% |
|
|
23 |
% |
|
|
25 |
% |
| Adjusted Expense
Ratio(3) |
|
|
15 |
% |
|
|
12 |
% |
|
|
19 |
% |
|
|
20 |
% |
|
|
16 |
% |
|
|
20 |
% |
|
|
14 |
% |
|
|
26 |
% |
|
|
39 |
% |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Primary Insurance In-Force(4) |
|
$ |
292,600 |
|
|
$ |
292,000 |
|
|
$ |
300,900 |
|
|
$ |
288,800 |
|
|
|
|
|
|
$ |
306,600 |
|
|
$ |
310,800 |
|
|
$ |
314,500 |
|
|
$ |
291,900 |
|
|
|
|
|
| Primary Risk
In-Force(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
74,300 |
|
|
$ |
75,500 |
|
|
$ |
78,500 |
|
|
$ |
75,700 |
|
|
|
|
|
|
$ |
81,300 |
|
|
$ |
82,600 |
|
|
$ |
84,500 |
|
|
$ |
80,100 |
|
|
|
|
|
| Bulk |
|
|
28,100 |
|
|
|
26,700 |
|
|
|
26,800 |
|
|
|
25,400 |
|
|
|
|
|
|
|
26,000 |
|
|
|
26,200 |
|
|
|
25,600 |
|
|
|
22,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
102,400 |
|
|
$ |
102,200 |
|
|
$ |
105,300 |
|
|
$ |
101,100 |
|
|
|
|
|
|
$ |
107,300 |
|
|
$ |
108,800 |
|
|
$ |
110,100 |
|
|
$ |
102,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Risk In-Force by Loan-To-Value Ratio(6) |
|
December 31, 2015 |
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
|
|
|
|
|
| |
|
Primary |
|
|
Flow |
|
|
Bulk |
|
|
|
|
|
|
|
|
Primary |
|
|
Flow |
|
|
Bulk |
|
|
|
|
|
|
|
| 95.01% and above |
|
$ |
35,570 |
|
|
$ |
35,570 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
$ |
35,931 |
|
|
$ |
35,931 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
| 90.01% to 95.00% |
|
|
22,338 |
|
|
|
22,338 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
22,766 |
|
|
|
22,766 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
| 80.01% to 90.00% |
|
|
13,630 |
|
|
|
13,627
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
13,978 |
|
|
|
13,975 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
| 80.00% and below |
|
|
30,873 |
|
|
|
2,729 |
|
|
|
28,144 |
|
|
|
|
|
|
|
|
|
|
|
29,541 |
|
|
|
2,790 |
|
|
|
26,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
102,411 |
|
|
$
|
74,264
|
|
|
$ |
28,147 |
|
|
|
|
|
|
|
|
|
|
$ |
102,216 |
|
|
$ |
75,462 |
|
|
$ |
26,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The loss and expense ratios included above were calculated using whole dollars and may be different than the ratios calculated
using the rounded numbers included herein.
Amounts may not total due to rounding
| (1) |
The ratio of incurred losses and loss adjustment expenses to net earned premiums. |
| (2) |
The ratio of an insurer’s general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. The
debt early redemption payment of $6 million in the second quarter of 2014 unfavorably impacted the GAAP basis expense ratio for the three months ended June 30, 2014 and the twelve months ended December 31, 2014 by five percentage points and one
percentage point, respectively. |
| (3) |
The ratio of an insurer’s general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. The
debt early redemption payment of $6 million in the second quarter of 2014 unfavorably impacted the adjusted expense ratio for the three months ended June 30, 2014 and the twelve months ended December 31, 2014 by five percentage points and one
percentage point, respectively. |
| (4) |
As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding balances in Canada from most of its customers. As a result, the company estimates that
the outstanding balance of insured mortgages was approximately $138.0 billion, $142.0 billion, $137.0 billion, $145.0 billion, $148.0 billion, $152.0 billion and $141.0 billion as of September 30, 2015, June 30, 2015, March 31, 2015, December 31,
2014, September 30, 2014, June 30, 2014 and March 31, 2014. This is based on the extrapolation of the amounts reported by lenders to the entire insured population. |
| (5) |
The business currently provides 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Canada has computed an “effective risk in-force” amount which
recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents the highest expected
average per-claim payment for any one underwriting year over the life of the business. This factor was 35% for all periods presented. |
| (6) |
Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable. |
25
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Selected Key Performance Measures—Canada Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Primary Insurance |
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
|
|
| Insured loans in-force(1),(2) |
|
|
1,835,916 |
|
|
|
1,785,541 |
|
|
|
1,737,083 |
|
|
|
1,704,483 |
|
|
|
1,673,505 |
|
|
|
|
|
| Insured delinquent loans |
|
|
1,829 |
|
|
|
1,715 |
|
|
|
1,666 |
|
|
|
1,792 |
|
|
|
1,756 |
|
|
|
|
|
| Insured delinquency rate(2),(3) |
|
|
0.10 |
% |
|
|
0.10 |
% |
|
|
0.10 |
% |
|
|
0.11 |
% |
|
|
0.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Flow loans in-force(1) |
|
|
1,331,773 |
|
|
|
1,313,034 |
|
|
|
1,287,744 |
|
|
|
1,266,626 |
|
|
|
1,255,050 |
|
|
|
|
|
| Flow delinquent loans |
|
|
1,550 |
|
|
|
1,449 |
|
|
|
1,435 |
|
|
|
1,532 |
|
|
|
1,493 |
|
|
|
|
|
| Flow delinquency rate(3) |
|
|
0.12 |
% |
|
|
0.11 |
% |
|
|
0.11 |
% |
|
|
0.12 |
% |
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Bulk loans in-force(1) |
|
|
504,143 |
|
|
|
472,507 |
|
|
|
449,339 |
|
|
|
437,857 |
|
|
|
418,455 |
|
|
|
|
|
| Bulk delinquent loans |
|
|
279 |
|
|
|
266 |
|
|
|
231 |
|
|
|
260 |
|
|
|
263 |
|
|
|
|
|
| Bulk delinquency rate(3) |
|
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.05 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Loss Metrics |
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
|
|
| Beginning Reserves |
|
$ |
83 |
|
|
$ |
85 |
|
|
$ |
85 |
|
|
$ |
91 |
|
|
$ |
89 |
|
|
|
|
|
| Paid claims(4) |
|
|
(18 |
) |
|
|
(20 |
) |
|
|
(21 |
) |
|
|
(22 |
) |
|
|
(24 |
) |
|
|
|
|
| Increase in reserves |
|
|
25 |
|
|
|
23 |
|
|
|
19 |
|
|
|
24 |
|
|
|
29 |
|
|
|
|
|
| Impact of changes in foreign exchange rates |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
2 |
|
|
|
(8 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending Reserves |
|
$ |
87 |
|
|
$ |
83 |
|
|
$ |
85 |
|
|
$ |
85 |
|
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Province and Territory |
|
% of Primary
Risk In-Force |
|
|
Primary
Delinquency Rate |
|
|
% of Primary
Risk In-Force |
|
|
Primary
Delinquency Rate |
|
|
% of Primary
Risk In-Force |
|
|
Primary
Delinquency Rate |
|
| Ontario |
|
|
47 |
% |
|
|
0.05 |
% |
|
|
46 |
% |
|
|
0.05 |
% |
|
|
46 |
% |
|
|
0.05 |
% |
| Alberta |
|
|
17 |
|
|
|
0.12 |
% |
|
|
17 |
|
|
|
0.10 |
% |
|
|
17 |
|
|
|
0.10 |
% |
| British Columbia |
|
|
14 |
|
|
|
0.08 |
% |
|
|
14 |
|
|
|
0.10 |
% |
|
|
14 |
|
|
|
0.14 |
% |
| Quebec |
|
|
13 |
|
|
|
0.19 |
% |
|
|
13 |
|
|
|
0.18 |
% |
|
|
14 |
|
|
|
0.19 |
% |
| Saskatchewan |
|
|
3 |
|
|
|
0.17 |
% |
|
|
3 |
|
|
|
0.15 |
% |
|
|
3 |
|
|
|
0.13 |
% |
| Nova Scotia |
|
|
2 |
|
|
|
0.18 |
% |
|
|
2 |
|
|
|
0.20 |
% |
|
|
2 |
|
|
|
0.23 |
% |
| Manitoba |
|
|
2 |
|
|
|
0.09 |
% |
|
|
2 |
|
|
|
0.08 |
% |
|
|
2 |
|
|
|
0.07 |
% |
| New Brunswick |
|
|
1 |
|
|
|
0.20 |
% |
|
|
1 |
|
|
|
0.19 |
% |
|
|
1 |
|
|
|
0.20 |
% |
| All Other |
|
|
1 |
|
|
|
0.13 |
% |
|
|
2 |
|
|
|
0.11 |
% |
|
|
1 |
|
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
100 |
% |
|
|
0.10 |
% |
|
|
100 |
% |
|
|
0.10 |
% |
|
|
100 |
% |
|
|
0.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| By Policy Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2006 and prior |
|
|
28 |
% |
|
|
0.02 |
% |
|
|
29 |
% |
|
|
0.03 |
% |
|
|
31 |
% |
|
|
0.03 |
% |
| 2007 |
|
|
8 |
|
|
|
0.14 |
% |
|
|
8 |
|
|
|
0.14 |
% |
|
|
9 |
|
|
|
0.16 |
% |
| 2008 |
|
|
6 |
|
|
|
0.19 |
% |
|
|
6 |
|
|
|
0.17 |
% |
|
|
7 |
|
|
|
0.21 |
% |
| 2009 |
|
|
4 |
|
|
|
0.16 |
% |
|
|
4 |
|
|
|
0.15 |
% |
|
|
5 |
|
|
|
0.22 |
% |
| 2010 |
|
|
7 |
|
|
|
0.21 |
% |
|
|
7 |
|
|
|
0.21 |
% |
|
|
8 |
|
|
|
0.23 |
% |
| 2011 |
|
|
6 |
|
|
|
0.26 |
% |
|
|
7 |
|
|
|
0.25 |
% |
|
|
7 |
|
|
|
0.25 |
% |
| 2012 |
|
|
7 |
|
|
|
0.22 |
% |
|
|
9 |
|
|
|
0.21 |
% |
|
|
10 |
|
|
|
0.19 |
% |
| 2013 |
|
|
9 |
|
|
|
0.16 |
% |
|
|
9 |
|
|
|
0.13 |
% |
|
|
11 |
|
|
|
0.09 |
% |
| 2014 |
|
|
10 |
|
|
|
0.09 |
% |
|
|
11 |
|
|
|
0.06 |
% |
|
|
12 |
|
|
|
0.02 |
% |
| 2015 |
|
|
15 |
|
|
|
0.01 |
% |
|
|
10 |
|
|
|
— |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
100 |
% |
|
|
0.10 |
% |
|
|
100 |
% |
|
|
0.10 |
% |
|
|
100 |
% |
|
|
0.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Insured loans in-force represent the original number of loans insured for which the coverage term has not expired, and for which no policy level cancellation or termination has been received. |
| (2) |
As part of an ongoing effort to improve the estimate of outstanding insurance exposure, the company is receiving updated outstanding loans in-force in Canada from most of its customers. As a result, the company
estimates that the outstanding loans in-force were 836,000 as of September 30, 2015, 828,000 as of June 30, 2015, 809,100 as of March 31, 2015, and 793,700 as of December 31, 2014. This is based on the extrapolation of the amounts reported by
lenders to the entire insured population. The corresponding insured delinquency rate was 0.21% as of September 30, 2015, 0.20% as of June 30, 2015 and 0.22% as of March 31, 2015 and December 31, 2014. |
| (3) |
Delinquency rates are based on insured loans in-force. |
| (4) |
Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims. |
26
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Selected Key Performance Measures—Canada Mortgage Insurance
Segment
(Canadian dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| Paid Claims(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
23 |
|
|
$ |
25 |
|
|
$ |
25 |
|
|
$ |
25 |
|
|
$ |
98 |
|
|
$ |
26 |
|
|
$ |
25 |
|
|
$ |
28 |
|
|
$ |
28 |
|
|
$ |
107 |
|
| Bulk |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
5 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Paid Claims |
|
$ |
24 |
|
|
$ |
26 |
|
|
$ |
26 |
|
|
$ |
27 |
|
|
$ |
103 |
|
|
$ |
27 |
|
|
$ |
26 |
|
|
$ |
28 |
|
|
$ |
29 |
|
|
$ |
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Paid Claim (in thousands) |
|
$ |
63.7 |
|
|
$ |
66.2 |
|
|
$ |
58.7 |
|
|
$ |
67.9 |
|
|
|
|
|
|
$ |
60.2 |
|
|
$ |
63.9 |
|
|
$ |
63.4 |
|
|
$ |
66.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Reserve Per Delinquency (in thousands) |
|
$ |
65.7 |
|
|
$ |
64.2 |
|
|
$ |
63.6 |
|
|
$ |
60.4 |
|
|
|
|
|
|
$ |
60.2 |
|
|
$ |
58.4 |
|
|
$ |
56.4 |
|
|
$ |
57.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning Reserves |
|
$ |
110 |
|
|
$ |
106 |
|
|
$ |
108 |
|
|
$ |
106 |
|
|
|
|
|
|
$ |
100 |
|
|
$ |
96 |
|
|
$ |
107 |
|
|
$ |
108 |
|
|
|
|
|
| Paid claims(1) |
|
|
(24 |
) |
|
|
(26 |
) |
|
|
(26 |
) |
|
|
(27 |
) |
|
|
|
|
|
|
(27 |
) |
|
|
(26 |
) |
|
|
(28 |
) |
|
|
(29 |
) |
|
|
|
|
| Increase in reserves |
|
|
34 |
|
|
|
30 |
|
|
|
24 |
|
|
|
29 |
|
|
|
|
|
|
|
33 |
|
|
|
30 |
|
|
|
17 |
|
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending Reserves |
|
$ |
120 |
|
|
$ |
110 |
|
|
$ |
106 |
|
|
$ |
108 |
|
|
|
|
|
|
$ |
106 |
|
|
$ |
100 |
|
|
$ |
96 |
|
|
$ |
107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan
Amount(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Over $550K |
|
|
7 |
% |
|
|
7 |
% |
|
|
6 |
% |
|
|
6 |
% |
|
|
|
|
|
|
6 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
| $400K to $550K |
|
|
13 |
|
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
|
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
|
|
| $250K to $400K |
|
|
33 |
|
|
|
33 |
|
|
|
33 |
|
|
|
33 |
|
|
|
|
|
|
|
33 |
|
|
|
32 |
|
|
|
32 |
|
|
|
32 |
|
|
|
|
|
| $100K to $250K |
|
|
43 |
|
|
|
44 |
|
|
|
44 |
|
|
|
44 |
|
|
|
|
|
|
|
45 |
|
|
|
46 |
|
|
|
47 |
|
|
|
47 |
|
|
|
|
|
| $100K or Less |
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
|
5 |
|
|
|
|
|
|
|
5 |
|
|
|
5 |
|
|
|
5 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Primary Loan Size (in thousands) |
|
$ |
221 |
|
|
$ |
218 |
|
|
$ |
216 |
|
|
$ |
215 |
|
|
|
|
|
|
$ |
213 |
|
|
$ |
212 |
|
|
$ |
209 |
|
|
$ |
208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Effective Loan-To-Value Ratios By Policy Year(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2006 and prior |
|
|
33 |
% |
|
|
35 |
% |
|
|
35 |
% |
|
|
36 |
% |
|
|
|
|
|
|
36 |
% |
|
|
38 |
% |
|
|
39 |
% |
|
|
39 |
% |
|
|
|
|
| 2007 |
|
|
57 |
% |
|
|
60 |
% |
|
|
61 |
% |
|
|
61 |
% |
|
|
|
|
|
|
61 |
% |
|
|
64 |
% |
|
|
64 |
% |
|
|
65 |
% |
|
|
|
|
| 2008 |
|
|
64 |
% |
|
|
67 |
% |
|
|
68 |
% |
|
|
68 |
% |
|
|
|
|
|
|
68 |
% |
|
|
71 |
% |
|
|
71 |
% |
|
|
71 |
% |
|
|
|
|
| 2009 |
|
|
62 |
% |
|
|
65 |
% |
|
|
66 |
% |
|
|
66 |
% |
|
|
|
|
|
|
66 |
% |
|
|
69 |
% |
|
|
70 |
% |
|
|
70 |
% |
|
|
|
|
| 2010 |
|
|
69 |
% |
|
|
71 |
% |
|
|
73 |
% |
|
|
73 |
% |
|
|
|
|
|
|
73 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
77 |
% |
|
|
|
|
| 2011 |
|
|
73 |
% |
|
|
75 |
% |
|
|
77 |
% |
|
|
77 |
% |
|
|
|
|
|
|
77 |
% |
|
|
80 |
% |
|
|
81 |
% |
|
|
81 |
% |
|
|
|
|
| 2012 |
|
|
77 |
% |
|
|
80 |
% |
|
|
82 |
% |
|
|
82 |
% |
|
|
|
|
|
|
82 |
% |
|
|
86 |
% |
|
|
86 |
% |
|
|
87 |
% |
|
|
|
|
| 2013 |
|
|
81 |
% |
|
|
84 |
% |
|
|
86 |
% |
|
|
86 |
% |
|
|
|
|
|
|
87 |
% |
|
|
90 |
% |
|
|
91 |
% |
|
|
91 |
% |
|
|
|
|
| 2014 |
|
|
87 |
% |
|
|
90 |
% |
|
|
92 |
% |
|
|
92 |
% |
|
|
|
|
|
|
92 |
% |
|
|
93 |
% |
|
|
93 |
% |
|
|
— |
% |
|
|
|
|
| 2015 |
|
|
91 |
% |
|
|
93 |
% |
|
|
93 |
% |
|
|
— |
% |
|
|
|
|
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
|
|
| Total Flow |
|
|
54 |
% |
|
|
55 |
% |
|
|
56 |
% |
|
|
56 |
% |
|
|
|
|
|
|
56 |
% |
|
|
57 |
% |
|
|
57 |
% |
|
|
57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Bulk |
|
|
41 |
% |
|
|
43 |
% |
|
|
42 |
% |
|
|
42 |
% |
|
|
|
|
|
|
42 |
% |
|
|
42 |
% |
|
|
41 |
% |
|
|
41 |
% |
|
|
|
|
| Total |
|
|
51 |
% |
|
|
52 |
% |
|
|
52 |
% |
|
|
52 |
% |
|
|
|
|
|
|
52 |
% |
|
|
53 |
% |
|
|
54 |
% |
|
|
54 |
% |
|
|
|
|
All amounts presented in Canadian dollars.
| (1) |
Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims. |
| (2) |
The percentages in this table are based on the amount of primary insurance in-force in each loan band as a percentage of total insurance in-force. |
| (3) |
Loan amounts (including capitalized premiums) reflect interest rates at time of loan origination and estimated scheduled principal repayments since loan origination. Home price estimates based on regional home price
appreciation/depreciation data from the Canadian Real Estate Association. All data used in the effective loan-to-value ratio calculation reflects conditions as of the end of the previous quarter. |
27
Australia Mortgage Insurance Segment
28
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Income and Sales—Australia Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
86 |
|
|
$ |
92 |
|
|
$ |
90 |
|
|
$ |
89 |
|
|
$ |
357 |
|
|
$ |
102 |
|
|
$ |
105 |
|
|
$ |
102 |
|
|
$ |
97 |
|
|
$ |
406 |
|
| Net investment income |
|
|
25 |
|
|
|
28 |
|
|
|
29 |
|
|
|
32 |
|
|
|
114 |
|
|
|
36 |
|
|
|
38 |
|
|
|
36 |
|
|
|
34 |
|
|
|
144 |
|
| Net investment gains (losses) |
|
|
2 |
|
|
|
3 |
|
|
|
— |
|
|
|
1 |
|
|
|
6 |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
| Policy fees and other income |
|
|
1 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
114 |
|
|
|
122 |
|
|
|
120 |
|
|
|
118 |
|
|
|
474 |
|
|
|
136 |
|
|
|
136 |
|
|
|
134 |
|
|
|
131 |
|
|
|
537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
15 |
|
|
|
27 |
|
|
|
25 |
|
|
|
14 |
|
|
|
81 |
|
|
|
15 |
|
|
|
22 |
|
|
|
24 |
|
|
|
17 |
|
|
|
78 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
24 |
|
|
|
27 |
|
|
|
25 |
|
|
|
22 |
|
|
|
98 |
|
|
|
30 |
|
|
|
25 |
|
|
|
23 |
|
|
|
19 |
|
|
|
97 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
|
5 |
|
|
|
18 |
|
|
|
5 |
|
|
|
5 |
|
|
|
6 |
|
|
|
5 |
|
|
|
21 |
|
| Interest expense |
|
|
3 |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
10 |
|
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
|
3 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
46 |
|
|
|
61 |
|
|
|
57 |
|
|
|
43 |
|
|
|
207 |
|
|
|
52 |
|
|
|
55 |
|
|
|
55 |
|
|
|
44 |
|
|
|
206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
68 |
|
|
|
61 |
|
|
|
63 |
|
|
|
75 |
|
|
|
267 |
|
|
|
84 |
|
|
|
81 |
|
|
|
79 |
|
|
|
87 |
|
|
|
331 |
|
| Provision for income taxes |
|
|
20 |
|
|
|
18 |
|
|
|
18 |
|
|
|
24 |
|
|
|
80 |
|
|
|
202 |
|
|
|
10 |
|
|
|
11 |
|
|
|
25 |
|
|
|
248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
48 |
|
|
|
43 |
|
|
|
45 |
|
|
|
51 |
|
|
|
187 |
|
|
|
(118 |
) |
|
|
71 |
|
|
|
68 |
|
|
|
62 |
|
|
|
83 |
|
| Less: net income attributable to noncontrolling interests |
|
|
25 |
|
|
|
22 |
|
|
|
16 |
|
|
|
21 |
|
|
|
84 |
|
|
|
22 |
|
|
|
23 |
|
|
|
11 |
|
|
|
— |
|
|
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON STOCKHOLDERS |
|
|
23 |
|
|
|
21 |
|
|
|
29 |
|
|
|
30 |
|
|
|
103 |
|
|
|
(140 |
) |
|
|
48 |
|
|
|
57 |
|
|
|
62 |
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO GENWORTH FINANCIAL, INC.’S COMMON
STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment (gains) losses, net |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
| (Gains) losses on early extinguishment of debt, net |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Tax impact from potential business portfolio changes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
174 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME(1) |
|
$ |
22 |
|
|
$ |
21 |
|
|
$ |
29 |
|
|
$ |
30 |
|
|
$ |
102 |
|
|
$ |
33 |
|
|
$ |
48 |
|
|
$ |
57 |
|
|
$ |
62 |
|
|
$ |
200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (operating income) |
|
|
28.7 |
% |
|
|
28.0 |
% |
|
|
29.5 |
% |
|
|
30.5 |
% |
|
|
29.3 |
% |
|
|
34.8 |
% |
|
|
14.2 |
% |
|
|
10.4 |
% |
|
|
29.0 |
% |
|
|
22.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
| SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Insurance Written (NIW) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
4,600 |
|
|
$ |
6,300 |
|
|
$ |
6,500 |
|
|
$ |
5,800 |
|
|
$ |
23,200 |
|
|
$ |
8,000 |
|
|
$ |
8,100 |
|
|
$ |
7,900 |
|
|
$ |
7,800 |
|
|
$ |
31,800 |
|
| Bulk |
|
|
— |
|
|
|
— |
|
|
|
1,700 |
|
|
|
— |
|
|
|
1,700 |
|
|
|
100 |
|
|
|
1,000 |
|
|
|
— |
|
|
|
— |
|
|
|
1,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Australia NIW(2) |
|
$ |
4,600 |
|
|
$ |
6,300 |
|
|
$ |
8,200 |
|
|
$ |
5,800 |
|
|
$ |
24,900 |
|
|
$ |
8,100 |
|
|
$ |
9,100 |
|
|
$ |
7,900 |
|
|
$ |
7,800 |
|
|
$ |
32,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Net operating income for the Australian platform adjusted for foreign exchange as compared to the prior year period was $28 million and $123 million for the three and twelve months ended December 31, 2015, respectively.
|
| (2) |
New insurance written for the Australian platform adjusted for foreign exchange as compared to the prior year period was $5,600 million and $29,700 million for the three and twelve months ended December 31, 2015,
respectively. |
29
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Selected Key Performance Measures—Australia Mortgage Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| Net Premiums Written |
|
$ |
55 |
|
|
$ |
79 |
|
|
$ |
107 |
|
|
$ |
87 |
|
|
$ |
328 |
|
|
$ |
128 |
|
|
$ |
130 |
|
|
$ |
125 |
|
|
$ |
126 |
|
|
$ |
509 |
|
| Loss Ratio(1),(2) |
|
|
17 |
% |
|
|
29 |
% |
|
|
28 |
% |
|
|
15 |
% |
|
|
23 |
% |
|
|
15 |
% |
|
|
21 |
% |
|
|
23 |
% |
|
|
17 |
% |
|
|
19 |
% |
| GAAP Basis Expense
Ratio(3) |
|
|
31 |
% |
|
|
34 |
% |
|
|
33 |
% |
|
|
30 |
% |
|
|
32 |
% |
|
|
34 |
% |
|
|
28 |
% |
|
|
28 |
% |
|
|
25 |
% |
|
|
29 |
% |
| Adjusted Expense
Ratio(4) |
|
|
49 |
% |
|
|
40 |
% |
|
|
28 |
% |
|
|
31 |
% |
|
|
35 |
% |
|
|
27 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
20 |
% |
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Primary Insurance In-Force |
|
$ |
233,600 |
|
|
$ |
224,100 |
|
|
$ |
243,800 |
|
|
$ |
240,900 |
|
|
|
|
|
|
$ |
256,000 |
|
|
$ |
271,100 |
|
|
$ |
288,500 |
|
|
$ |
281,000 |
|
|
|
|
|
| Primary Risk In-Force(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
76,000 |
|
|
$ |
72,900 |
|
|
$ |
79,100 |
|
|
$ |
78,600 |
|
|
|
|
|
|
$ |
83,400 |
|
|
$ |
88,100 |
|
|
$ |
93,800 |
|
|
$ |
91,100 |
|
|
|
|
|
| Bulk |
|
|
5,500 |
|
|
|
5,500 |
|
|
|
6,200 |
|
|
|
5,700 |
|
|
|
|
|
|
|
6,200 |
|
|
|
6,800 |
|
|
|
7,200 |
|
|
|
7,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
81,500 |
|
|
$ |
78,400 |
|
|
$ |
85,300 |
|
|
$ |
84,300 |
|
|
|
|
|
|
$ |
89,600 |
|
|
$ |
94,900 |
|
|
$ |
101,000 |
|
|
$ |
98,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2015 |
|
|
|
|
|
|
|
|
September 30, 2015 |
|
|
|
|
|
|
|
| Risk In-Force by Loan-To-Value Ratio(6) |
|
Primary |
|
|
Flow |
|
|
Bulk |
|
|
|
|
|
|
|
|
Primary |
|
|
Flow |
|
|
Bulk |
|
|
|
|
|
|
|
| 95.01% and above |
|
$ |
15,055 |
|
|
$ |
15,055 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
$ |
14,697 |
|
|
$ |
14,697 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
| 90.01% to 95.00% |
|
|
20,933 |
|
|
|
20,927 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
19,883 |
|
|
|
19,877 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
| 80.01% to 90.00% |
|
|
21,510 |
|
|
|
21,446
|
|
|
|
64 |
|
|
|
|
|
|
|
|
|
|
|
20,522 |
|
|
|
20,460 |
|
|
|
62 |
|
|
|
|
|
|
|
|
|
| 80.00% and below |
|
|
23,970 |
|
|
|
18,545 |
|
|
|
5,426 |
|
|
|
|
|
|
|
|
|
|
|
23,323 |
|
|
|
17,872 |
|
|
|
5,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
81,468 |
|
|
$ |
75,972 |
|
|
$ |
5,496 |
|
|
|
|
|
|
|
|
|
|
$ |
78,425 |
|
|
$ |
72,906 |
|
|
$ |
5,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The loss and expense ratios included above were calculated using whole dollars and may be different than the ratios
calculated using the rounded numbers included herein.
Amounts may not total due to rounding.
| (1) |
The ratio of incurred losses and loss adjustment expenses to net earned premiums. |
| (2) |
During the third quarter of 2015, the company increased reserves $9 million mainly related to the estimate of the period of time it takes for a delinquent loan to be reported and increased net earned premiums $8 million
from refinements to premium recognition factors. These adjustments unfavorably impacted the loss ratio by seven percentage points for the three months ended September 30, 2015. During the first quarter of 2015, the company accrued a $7 million
pre-tax receivable for expected recoveries relating to paid claims reflecting its experience of successful borrower recovery activity, which favorably impacted the loss ratio by nine percentage points for the three months ended March 31, 2015.
|
| (3) |
The ratio of an insurer's general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. The debt
early redemption payment of $2 million in the third quarter of 2015 unfavorably impacted the GAAP basis expense ratio for the three months ended September 30, 2015 by two percentage points. |
| (4) |
The ratio of an insurer's general expenses to net premiums written. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles. The debt
early redemption payment of $2 million in the third quarter of 2015 unfavorably impacted the adjusted expense ratio for the three months ended September 30, 2015 by two percentage points. |
| (5) |
The business currently provide 100% coverage on the majority of the loans the company insures. For the purpose of representing the risk in-force, Australia has computed an “effective risk in-force” amount
which recognizes that the loss on any particular loan will be reduced by the net proceeds received upon sale of the property. Effective risk in-force has been calculated by applying to insurance in-force a factor that represents the highest expected
average per-claim payment for any one underwriting year over the life of the business. This factor was 35% for all periods presented. Australia also has certain risk share arrangements where it provides pro-rata coverage of certain loans rather than
100% coverage. As a result, for loans with these risk share arrangements, the applicable pro-rata coverage amount provided is used when applying the factor. |
| (6) |
Loan amount in loan-to-value ratio calculation includes capitalized premiums, where applicable. |
30
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Selected Key Performance Measures—Australia Mortgage Insurance Segment
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Primary Insurance |
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
|
|
| Insured loans in-force |
|
|
1,478,434 |
|
|
|
1,479,676 |
|
|
|
1,481,755 |
|
|
|
1,498,197 |
|
|
|
1,496,616 |
|
|
|
|
|
| Insured delinquent loans |
|
|
5,552 |
|
|
|
5,804 |
|
|
|
5,900 |
|
|
|
5,378 |
|
|
|
4,953 |
|
|
|
|
|
| Insured delinquency rate |
|
|
0.38 |
% |
|
|
0.39 |
% |
|
|
0.40 |
% |
|
|
0.36 |
% |
|
|
0.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Flow loans in-force |
|
|
1,364,628 |
|
|
|
1,364,537 |
|
|
|
1,364,653 |
|
|
|
1,382,156 |
|
|
|
1,378,584 |
|
|
|
|
|
| Flow delinquent loans |
|
|
5,317 |
|
|
|
5,545 |
|
|
|
5,623 |
|
|
|
5,112 |
|
|
|
4,714 |
|
|
|
|
|
| Flow delinquency rate |
|
|
0.39 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.37 |
% |
|
|
0.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Bulk loans in-force |
|
|
113,806 |
|
|
|
115,139 |
|
|
|
117,102 |
|
|
|
116,041 |
|
|
|
118,032 |
|
|
|
|
|
| Bulk delinquent loans |
|
|
235 |
|
|
|
259 |
|
|
|
277 |
|
|
|
266 |
|
|
|
239 |
|
|
|
|
|
| Bulk delinquency rate |
|
|
0.21 |
% |
|
|
0.22 |
% |
|
|
0.24 |
% |
|
|
0.23 |
% |
|
|
0.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Loss Metrics |
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
|
|
| Beginning Reserves |
|
$ |
156 |
|
|
$ |
160 |
|
|
$ |
149 |
|
|
$ |
152 |
|
|
$ |
161 |
|
|
|
|
|
| Paid claims(1) |
|
|
(14 |
) |
|
|
(16 |
) |
|
|
(15 |
) |
|
|
(14 |
) |
|
|
(14 |
) |
|
|
|
|
| Increase in reserves |
|
|
17 |
|
|
|
27 |
|
|
|
25 |
|
|
|
21 |
|
|
|
15 |
|
|
|
|
|
| Impact of changes in foreign exchange rates |
|
|
6 |
|
|
|
(15 |
) |
|
|
1 |
|
|
|
(10 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending Reserves |
|
$ |
165 |
|
|
$ |
156 |
|
|
$ |
160 |
|
|
$ |
149 |
|
|
$ |
152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| State and Territory |
|
% of Primary
Risk In-Force |
|
|
Primary
Delinquency Rate |
|
|
% of Primary
Risk In-Force |
|
|
Primary
Delinquency Rate |
|
|
% of Primary
Risk In-Force |
|
|
Primary
Delinquency Rate |
|
| New South Wales |
|
|
29 |
% |
|
|
0.27 |
% |
|
|
29 |
% |
|
|
0.30 |
% |
|
|
29 |
% |
|
|
0.27% |
|
| Queensland |
|
|
23 |
|
|
|
0.53 |
% |
|
|
23 |
|
|
|
0.57 |
% |
|
|
23 |
|
|
|
0.47% |
|
| Victoria |
|
|
23 |
|
|
|
0.33 |
% |
|
|
23 |
|
|
|
0.35 |
% |
|
|
23 |
|
|
|
0.30% |
|
| Western Australia |
|
|
11 |
|
|
|
0.46 |
% |
|
|
11 |
|
|
|
0.45 |
% |
|
|
11 |
|
|
|
0.32% |
|
| South Australia |
|
|
6 |
|
|
|
0.51 |
% |
|
|
6 |
|
|
|
0.50 |
% |
|
|
6 |
|
|
|
0.44% |
|
| Australian Capital Territory |
|
|
3 |
|
|
|
0.17 |
% |
|
|
3 |
|
|
|
0.15 |
% |
|
|
3 |
|
|
|
0.16% |
|
| Tasmania |
|
|
2 |
|
|
|
0.32 |
% |
|
|
2 |
|
|
|
0.31 |
% |
|
|
2 |
|
|
|
0.25% |
|
| New Zealand |
|
|
2 |
|
|
|
0.17 |
% |
|
|
2 |
|
|
|
0.23 |
% |
|
|
2 |
|
|
|
0.28% |
|
| Northern Territory |
|
|
1 |
|
|
|
0.17 |
% |
|
|
1 |
|
|
|
0.21 |
% |
|
|
1 |
|
|
|
0.16% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
100 |
% |
|
|
0.38 |
% |
|
|
100 |
% |
|
|
0.39 |
% |
|
|
100 |
% |
|
|
0.33% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| By Policy Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2006 and prior |
|
|
29 |
% |
|
|
0.23 |
% |
|
|
29 |
% |
|
|
0.24 |
% |
|
|
32 |
% |
|
|
0.20% |
|
| 2007 |
|
|
7 |
|
|
|
0.72 |
% |
|
|
7 |
|
|
|
0.74 |
% |
|
|
8 |
|
|
|
0.63% |
|
| 2008 |
|
|
6 |
|
|
|
0.89 |
% |
|
|
7 |
|
|
|
0.93 |
% |
|
|
7 |
|
|
|
0.87% |
|
| 2009 |
|
|
8 |
|
|
|
0.71 |
% |
|
|
8 |
|
|
|
0.75 |
% |
|
|
9 |
|
|
|
0.66% |
|
| 2010 |
|
|
6 |
|
|
|
0.46 |
% |
|
|
6 |
|
|
|
0.44 |
% |
|
|
6 |
|
|
|
0.38% |
|
| 2011 |
|
|
6 |
|
|
|
0.46 |
% |
|
|
6 |
|
|
|
0.46 |
% |
|
|
7 |
|
|
|
0.40% |
|
| 2012 |
|
|
8 |
|
|
|
0.49 |
% |
|
|
9 |
|
|
|
0.51 |
% |
|
|
9 |
|
|
|
0.32% |
|
| 2013 |
|
|
10 |
|
|
|
0.37 |
% |
|
|
10 |
|
|
|
0.37 |
% |
|
|
11 |
|
|
|
0.18% |
|
| 2014 |
|
|
11 |
|
|
|
0.19 |
% |
|
|
11 |
|
|
|
0.16 |
% |
|
|
11 |
|
|
|
0.02% |
|
| 2015 |
|
|
9 |
|
|
|
0.02 |
% |
|
|
7 |
|
|
|
0.01 |
% |
|
|
— |
% |
|
|
— % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
100 |
% |
|
|
0.38 |
% |
|
|
100 |
% |
|
|
0.39 |
% |
|
|
100 |
% |
|
|
0.33% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims. |
31
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Selected Key Performance Measures—Australia Mortgage Insurance Segment
(Australian dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| Paid Claims(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Flow |
|
$ |
22 |
|
|
$ |
21 |
|
|
$ |
19 |
|
|
$ |
17 |
|
|
$ |
79 |
|
|
$ |
15 |
|
|
$ |
20 |
|
|
$ |
25 |
|
|
$ |
30 |
|
|
$ |
90 |
|
| Bulk |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Paid Claims |
|
$ |
22 |
|
|
$ |
21 |
|
|
$ |
19 |
|
|
$ |
18 |
|
|
$ |
80 |
|
|
$ |
15 |
|
|
$ |
21 |
|
|
$ |
25 |
|
|
$ |
30 |
|
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Paid Claim (in thousands) |
|
$ |
71.0 |
|
|
$ |
65.9 |
|
|
$ |
66.9 |
|
|
$ |
62.5 |
|
|
|
|
|
|
$ |
49.5 |
|
|
$ |
58.6 |
|
|
$ |
60.5 |
|
|
$ |
65.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Reserve Per Delinquency (in thousands) |
|
$ |
40.7 |
|
|
$ |
38.3 |
|
|
$ |
35.2 |
|
|
$ |
36.4 |
|
|
|
|
|
|
$ |
37.6 |
|
|
$ |
34.8 |
|
|
$ |
33.6 |
|
|
$ |
35.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning Reserves |
|
$ |
222 |
|
|
$ |
208 |
|
|
$ |
196 |
|
|
$ |
186 |
|
|
|
|
|
|
$ |
184 |
|
|
$ |
181 |
|
|
$ |
181 |
|
|
$ |
192 |
|
|
|
|
|
| Paid claims(1) |
|
|
(22 |
) |
|
|
(21 |
) |
|
|
(19 |
) |
|
|
(18 |
) |
|
|
|
|
|
|
(15 |
) |
|
|
(21 |
) |
|
|
(25 |
) |
|
|
(30 |
) |
|
|
|
|
| Increase in reserves |
|
|
26 |
|
|
|
35 |
|
|
|
31 |
|
|
|
28 |
|
|
|
|
|
|
|
17 |
|
|
|
24 |
|
|
|
25 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending Reserves |
|
$ |
226 |
|
|
$ |
222 |
|
|
$ |
208 |
|
|
$ |
196 |
|
|
|
|
|
|
$ |
186 |
|
|
$ |
184 |
|
|
$ |
181 |
|
|
$ |
181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan Amount(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Over $550K |
|
|
15 |
% |
|
|
15 |
% |
|
|
14 |
% |
|
|
13 |
% |
|
|
|
|
|
|
13 |
% |
|
|
13 |
% |
|
|
12 |
% |
|
|
12 |
% |
|
|
|
|
| $400K to $550K |
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
|
|
|
|
18 |
|
|
|
18 |
|
|
|
18 |
|
|
|
18 |
|
|
|
|
|
| $250K to $400K |
|
|
36 |
|
|
|
36 |
|
|
|
36 |
|
|
|
37 |
|
|
|
|
|
|
|
37 |
|
|
|
37 |
|
|
|
37 |
|
|
|
37 |
|
|
|
|
|
| $100K to $250K |
|
|
25 |
|
|
|
25 |
|
|
|
25 |
|
|
|
26 |
|
|
|
|
|
|
|
26 |
|
|
|
26 |
|
|
|
27 |
|
|
|
27 |
|
|
|
|
|
| $100K or Less |
|
|
5 |
|
|
|
5 |
|
|
|
6 |
|
|
|
5 |
|
|
|
|
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Primary Loan Size (in thousands) |
|
$ |
217 |
|
|
$ |
216 |
|
|
$ |
213 |
|
|
$ |
211 |
|
|
|
|
|
|
$ |
210 |
|
|
$ |
208 |
|
|
$ |
207 |
|
|
$ |
205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Effective Loan-To-Value Ratios By Policy Year(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2006 and prior |
|
|
32 |
% |
|
|
34 |
% |
|
|
35 |
% |
|
|
36 |
% |
|
|
|
|
|
|
36 |
% |
|
|
38 |
% |
|
|
38 |
% |
|
|
40 |
% |
|
|
|
|
| 2007 |
|
|
53 |
% |
|
|
55 |
% |
|
|
56 |
% |
|
|
57 |
% |
|
|
|
|
|
|
58 |
% |
|
|
60 |
% |
|
|
61 |
% |
|
|
63 |
% |
|
|
|
|
| 2008 |
|
|
60 |
% |
|
|
62 |
% |
|
|
63 |
% |
|
|
65 |
% |
|
|
|
|
|
|
66 |
% |
|
|
67 |
% |
|
|
68 |
% |
|
|
70 |
% |
|
|
|
|
| 2009 |
|
|
61 |
% |
|
|
64 |
% |
|
|
65 |
% |
|
|
67 |
% |
|
|
|
|
|
|
68 |
% |
|
|
69 |
% |
|
|
70 |
% |
|
|
73 |
% |
|
|
|
|
| 2010 |
|
|
66 |
% |
|
|
68 |
% |
|
|
70 |
% |
|
|
72 |
% |
|
|
|
|
|
|
73 |
% |
|
|
74 |
% |
|
|
76 |
% |
|
|
78 |
% |
|
|
|
|
| 2011 |
|
|
68 |
% |
|
|
70 |
% |
|
|
72 |
% |
|
|
73 |
% |
|
|
|
|
|
|
74 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
80 |
% |
|
|
|
|
| 2012 |
|
|
69 |
% |
|
|
71 |
% |
|
|
72 |
% |
|
|
74 |
% |
|
|
|
|
|
|
75 |
% |
|
|
77 |
% |
|
|
78 |
% |
|
|
80 |
% |
|
|
|
|
| 2013 |
|
|
73 |
% |
|
|
75 |
% |
|
|
76 |
% |
|
|
78 |
% |
|
|
|
|
|
|
79 |
% |
|
|
81 |
% |
|
|
82 |
% |
|
|
84 |
% |
|
|
|
|
| 2014 |
|
|
80 |
% |
|
|
82 |
% |
|
|
84 |
% |
|
|
85 |
% |
|
|
|
|
|
|
86 |
% |
|
|
87 |
% |
|
|
87 |
% |
|
|
— |
% |
|
|
|
|
| 2015 |
|
|
84 |
% |
|
|
87 |
% |
|
|
87 |
% |
|
|
— |
% |
|
|
|
|
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
|
|
| Total Flow |
|
|
57 |
% |
|
|
59 |
% |
|
|
59 |
% |
|
|
60 |
% |
|
|
|
|
|
|
60 |
% |
|
|
61 |
% |
|
|
61 |
% |
|
|
62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Bulk |
|
|
25 |
% |
|
|
27 |
% |
|
|
26 |
% |
|
|
27 |
% |
|
|
|
|
|
|
28 |
% |
|
|
28 |
% |
|
|
29 |
% |
|
|
30 |
% |
|
|
|
|
| Total |
|
|
54 |
% |
|
|
56 |
% |
|
|
56 |
% |
|
|
56 |
% |
|
|
|
|
|
|
57 |
% |
|
|
58 |
% |
|
|
58 |
% |
|
|
59 |
% |
|
|
|
|
All amounts presented in Australian dollars.
| (1) |
Paid claims exclude adjustments for expected recoveries related to loss reserves and prior paid claims. |
| (2) |
The percentages in this table are based on the amount of primary insurance in-force in each loan band as a percentage of total insurance in-force. |
| (3) |
Loan amounts (including capitalized premiums) reflect interest rates at time of loan origination and estimated scheduled principal repayments since loan origination. Home price estimates based on regional home price
appreciation/depreciation data from RP Data. All data used in the effective loan-to-value ratio calculation reflects conditions as of the end of the previous quarter. Effective loan-to-value ratios exclude New Zealand and inward reinsurance
policies. |
32
U.S. Life Insurance Segment
33
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Income (Loss)—U.S. Life Insurance Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
797 |
|
|
$ |
784 |
|
|
$ |
769 |
|
|
$ |
778 |
|
|
$ |
3,128 |
|
|
$ |
827 |
|
|
$ |
821 |
|
|
$ |
762 |
|
|
$ |
759 |
|
|
$ |
3,169 |
|
| Net investment income |
|
|
673 |
|
|
|
680 |
|
|
|
677 |
|
|
|
671 |
|
|
|
2,701 |
|
|
|
676 |
|
|
|
658 |
|
|
|
671 |
|
|
|
660 |
|
|
|
2,665 |
|
| Net investment gains (losses) |
|
|
17 |
|
|
|
(16 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
12 |
|
|
|
1 |
|
|
|
25 |
|
|
|
3 |
|
|
|
41 |
|
| Policy fees and other income |
|
|
187 |
|
|
|
177 |
|
|
|
182 |
|
|
|
180 |
|
|
|
726 |
|
|
|
180 |
|
|
|
186 |
|
|
|
175 |
|
|
|
171 |
|
|
|
712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
1,674 |
|
|
|
1,625 |
|
|
|
1,621 |
|
|
|
1,625 |
|
|
|
6,545 |
|
|
|
1,695 |
|
|
|
1,666 |
|
|
|
1,633 |
|
|
|
1,593 |
|
|
|
6,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
1,324 |
|
|
|
1,155 |
|
|
|
1,122 |
|
|
|
1,091 |
|
|
|
4,692 |
|
|
|
1,981 |
|
|
|
1,722 |
|
|
|
1,087 |
|
|
|
1,030 |
|
|
|
5,820 |
|
| Interest credited |
|
|
148 |
|
|
|
148 |
|
|
|
150 |
|
|
|
150 |
|
|
|
596 |
|
|
|
154 |
|
|
|
155 |
|
|
|
155 |
|
|
|
154 |
|
|
|
618 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
178 |
|
|
|
176 |
|
|
|
167 |
|
|
|
163 |
|
|
|
684 |
|
|
|
168 |
|
|
|
173 |
|
|
|
156 |
|
|
|
161 |
|
|
|
658 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
194 |
|
|
|
530 |
|
|
|
75 |
|
|
|
73 |
|
|
|
872 |
|
|
|
98 |
|
|
|
91 |
|
|
|
81 |
|
|
|
75 |
|
|
|
345 |
|
| Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
299 |
|
|
|
550 |
|
|
|
— |
|
|
|
— |
|
|
|
849 |
|
| Interest expense |
|
|
23 |
|
|
|
22 |
|
|
|
22 |
|
|
|
25 |
|
|
|
92 |
|
|
|
23 |
|
|
|
22 |
|
|
|
21 |
|
|
|
21 |
|
|
|
87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
1,867 |
|
|
|
2,031 |
|
|
|
1,536 |
|
|
|
1,502 |
|
|
|
6,936 |
|
|
|
2,723 |
|
|
|
2,713 |
|
|
|
1,500 |
|
|
|
1,441 |
|
|
|
8,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(193 |
) |
|
|
(406 |
) |
|
|
85 |
|
|
|
123 |
|
|
|
(391 |
) |
|
|
(1,028 |
) |
|
|
(1,047 |
) |
|
|
133 |
|
|
|
152 |
|
|
|
(1,790 |
) |
| Provision (benefit) for income taxes |
|
|
(68 |
) |
|
|
(144 |
) |
|
|
31 |
|
|
|
43 |
|
|
|
(138 |
) |
|
|
(278 |
) |
|
|
(211 |
) |
|
|
47 |
|
|
|
57 |
|
|
|
(385 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(125 |
) |
|
|
(262 |
) |
|
|
54 |
|
|
|
80 |
|
|
|
(253 |
) |
|
|
(750 |
) |
|
|
(836 |
) |
|
|
86 |
|
|
|
95 |
|
|
|
(1,405 |
) |
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment (gains) losses, net |
|
|
(12 |
) |
|
|
6 |
|
|
|
2 |
|
|
|
1 |
|
|
|
(3 |
) |
|
|
(6 |
) |
|
|
(3 |
) |
|
|
(17 |
) |
|
|
(1 |
) |
|
|
(27 |
) |
| Goodwill impairment, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
274 |
|
|
|
517 |
|
|
|
— |
|
|
|
— |
|
|
|
791 |
|
| (Gains) losses from life block transactions, net |
|
|
— |
|
|
|
296 |
|
|
|
— |
|
|
|
— |
|
|
|
296 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Expenses related to restructuring, net |
|
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME (LOSS) |
|
$ |
(135 |
) |
|
$ |
40 |
|
|
$ |
57 |
|
|
$ |
81 |
|
|
$ |
43 |
|
|
$ |
(482 |
) |
|
$ |
(322 |
) |
|
$ |
69 |
|
|
$ |
94 |
|
|
$ |
(641 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (operating income (loss)) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
34.7 |
% |
|
|
35.8 |
% |
|
|
35.6 |
% |
|
|
37.3 |
% |
|
|
34.7 |
% |
34
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Income (Loss) and Sales—U.S. Life Insurance Segment—Long-Term Care
Insurance
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
633 |
|
|
$ |
618 |
|
|
$ |
597 |
|
|
$ |
589 |
|
|
$ |
2,437 |
|
|
$ |
607 |
|
|
$ |
587 |
|
|
$ |
577 |
|
|
$ |
565 |
|
|
$ |
2,336 |
|
| Net investment income |
|
|
325 |
|
|
|
327 |
|
|
|
320 |
|
|
|
313 |
|
|
|
1,285 |
|
|
|
303 |
|
|
|
293 |
|
|
|
292 |
|
|
|
290 |
|
|
|
1,178 |
|
| Net investment gains (losses) |
|
|
24 |
|
|
|
4 |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
28 |
|
|
|
6 |
|
|
|
(1 |
) |
|
|
3 |
|
|
|
— |
|
|
|
8 |
|
| Policy fees and other income |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
983 |
|
|
|
949 |
|
|
|
915 |
|
|
|
905 |
|
|
|
3,752 |
|
|
|
916 |
|
|
|
879 |
|
|
|
872 |
|
|
|
856 |
|
|
|
3,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
797 |
|
|
|
825 |
|
|
|
780 |
|
|
|
766 |
|
|
|
3,168 |
|
|
|
1,545 |
|
|
|
1,313 |
|
|
|
735 |
|
|
|
664 |
|
|
|
4,257 |
|
| Interest credited |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Acquisition and operating expenses, net of deferrals |
|
|
110 |
|
|
|
112 |
|
|
|
98 |
|
|
|
95 |
|
|
|
415 |
|
|
|
106 |
|
|
|
103 |
|
|
|
97 |
|
|
|
93 |
|
|
|
399 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
25 |
|
|
|
24 |
|
|
|
24 |
|
|
|
26 |
|
|
|
99 |
|
|
|
34 |
|
|
|
25 |
|
|
|
27 |
|
|
|
26 |
|
|
|
112 |
|
| Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
154 |
|
|
|
200 |
|
|
|
— |
|
|
|
— |
|
|
|
354 |
|
| Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
932 |
|
|
|
961 |
|
|
|
902 |
|
|
|
887 |
|
|
|
3,682 |
|
|
|
1,839 |
|
|
|
1,641 |
|
|
|
859 |
|
|
|
783 |
|
|
|
5,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
51 |
|
|
|
(12 |
) |
|
|
13 |
|
|
|
18 |
|
|
|
70 |
|
|
|
(923 |
) |
|
|
(762 |
) |
|
|
13 |
|
|
|
73 |
|
|
|
(1,599 |
) |
| Provision (benefit) for income taxes |
|
|
19 |
|
|
|
(5 |
) |
|
|
5 |
|
|
|
6 |
|
|
|
25 |
|
|
|
(291 |
) |
|
|
(234 |
) |
|
|
5 |
|
|
|
27 |
|
|
|
(493 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
32 |
|
|
|
(7 |
) |
|
|
8 |
|
|
|
12 |
|
|
|
45 |
|
|
|
(632 |
) |
|
|
(528 |
) |
|
|
8 |
|
|
|
46 |
|
|
|
(1,106 |
) |
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment (gains) losses, net |
|
|
(15 |
) |
|
|
(3 |
) |
|
|
2 |
|
|
|
(2 |
) |
|
|
(18 |
) |
|
|
(3 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(5 |
) |
| Goodwill impairment, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
129 |
|
|
|
167 |
|
|
|
— |
|
|
|
— |
|
|
|
296 |
|
| Expenses related to restructuring, net |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME (LOSS) |
|
$ |
19 |
|
|
$ |
(10 |
) |
|
$ |
10 |
|
|
$ |
10 |
|
|
$ |
29 |
|
|
$ |
(506 |
) |
|
$ |
(361 |
) |
|
$ |
6 |
|
|
$ |
46 |
|
|
$ |
(815 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (operating income (loss)) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
34.6 |
% |
|
|
35.7 |
% |
|
|
37.1 |
% |
|
|
37.0 |
% |
|
|
34.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
| SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Individual Long-Term Care Insurance |
|
$ |
8 |
|
|
$ |
7 |
|
|
$ |
8 |
|
|
$ |
10 |
|
|
$ |
33 |
|
|
$ |
17 |
|
|
$ |
28 |
|
|
$ |
24 |
|
|
$ |
21 |
|
|
$ |
90 |
|
| Group Long-Term Care Insurance |
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
|
|
6 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Sales |
|
$ |
10 |
|
|
$ |
8 |
|
|
$ |
9 |
|
|
$ |
11 |
|
|
$ |
38 |
|
|
$ |
23 |
|
|
$ |
29 |
|
|
$ |
26 |
|
|
$ |
22 |
|
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss Ratio(1) |
|
|
72.9 |
% |
|
|
76.4 |
% |
|
|
72.6 |
% |
|
|
72.4 |
% |
|
|
73.6 |
% |
|
|
200.1 |
% |
|
|
173.0 |
% |
|
|
73.2 |
% |
|
|
63.3 |
% |
|
|
128.8 |
% |
| Gross Benefits Ratio(2) |
|
|
125.9 |
% |
|
|
133.5 |
% |
|
|
130.5 |
% |
|
|
130.2 |
% |
|
|
130.0 |
% |
|
|
254.4 |
% |
|
|
224.1 |
% |
|
|
127.3 |
% |
|
|
117.5 |
% |
|
|
182.2 |
% |
| (1) |
The loss ratio was calculated by dividing benefits and other changes in policy reserves less tabular interest on reserves less loss adjustment expenses by net earned premiums. |
| (2) |
The gross benefits ratio was calculated by dividing the benefits and other changes in policy reserves by net earned premiums. |
35
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Income (Loss) and Sales—U.S. Life Insurance Segment—Life Insurance
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
160 |
|
|
$ |
162 |
|
|
$ |
169 |
|
|
$ |
179 |
|
|
$ |
670 |
|
|
$ |
175 |
|
|
$ |
193 |
|
|
$ |
171 |
|
|
$ |
183 |
|
|
$ |
722 |
|
| Net investment income |
|
|
125 |
|
|
|
126 |
|
|
|
127 |
|
|
|
127 |
|
|
|
505 |
|
|
|
133 |
|
|
|
123 |
|
|
|
137 |
|
|
|
128 |
|
|
|
521 |
|
| Net investment gains (losses) |
|
|
15 |
|
|
|
(8 |
) |
|
|
3 |
|
|
|
3 |
|
|
|
13 |
|
|
|
— |
|
|
|
10 |
|
|
|
23 |
|
|
|
1 |
|
|
|
34 |
|
| Policy fees and other income |
|
|
183 |
|
|
|
175 |
|
|
|
178 |
|
|
|
178 |
|
|
|
714 |
|
|
|
179 |
|
|
|
184 |
|
|
|
173 |
|
|
|
168 |
|
|
|
704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
483 |
|
|
|
455 |
|
|
|
477 |
|
|
|
487 |
|
|
|
1,902 |
|
|
|
487 |
|
|
|
510 |
|
|
|
504 |
|
|
|
480 |
|
|
|
1,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
446 |
|
|
|
248 |
|
|
|
266 |
|
|
|
250 |
|
|
|
1,210 |
|
|
|
315 |
|
|
|
293 |
|
|
|
257 |
|
|
|
281 |
|
|
|
1,146 |
|
| Interest credited |
|
|
68 |
|
|
|
66 |
|
|
|
68 |
|
|
|
66 |
|
|
|
268 |
|
|
|
67 |
|
|
|
67 |
|
|
|
66 |
|
|
|
66 |
|
|
|
266 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
50 |
|
|
|
48 |
|
|
|
52 |
|
|
|
51 |
|
|
|
201 |
|
|
|
45 |
|
|
|
52 |
|
|
|
45 |
|
|
|
50 |
|
|
|
192 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
150 |
|
|
|
487 |
|
|
|
33 |
|
|
|
30 |
|
|
|
700 |
|
|
|
36 |
|
|
|
46 |
|
|
|
32 |
|
|
|
26 |
|
|
|
140 |
|
| Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
145 |
|
|
|
350 |
|
|
|
— |
|
|
|
— |
|
|
|
495 |
|
| Interest expense |
|
|
23 |
|
|
|
22 |
|
|
|
22 |
|
|
|
25 |
|
|
|
92 |
|
|
|
23 |
|
|
|
22 |
|
|
|
21 |
|
|
|
21 |
|
|
|
87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
737 |
|
|
|
871 |
|
|
|
441 |
|
|
|
422 |
|
|
|
2,471 |
|
|
|
631 |
|
|
|
830 |
|
|
|
421 |
|
|
|
444 |
|
|
|
2,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(254 |
) |
|
|
(416 |
) |
|
|
36 |
|
|
|
65 |
|
|
|
(569 |
) |
|
|
(144 |
) |
|
|
(320 |
) |
|
|
83 |
|
|
|
36 |
|
|
|
(345 |
) |
| Provision (benefit) for income taxes |
|
|
(90 |
) |
|
|
(147 |
) |
|
|
13 |
|
|
|
23 |
|
|
|
(201 |
) |
|
|
— |
|
|
|
11 |
|
|
|
29 |
|
|
|
14 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(164 |
) |
|
|
(269 |
) |
|
|
23 |
|
|
|
42 |
|
|
|
(368 |
) |
|
|
(144 |
) |
|
|
(331 |
) |
|
|
54 |
|
|
|
22 |
|
|
|
(399 |
) |
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTMENTS TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment (gains) losses, net |
|
|
(9 |
) |
|
|
4 |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
(15 |
) |
|
|
(1 |
) |
|
|
(22 |
) |
| Goodwill impairment, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
145 |
|
|
|
350 |
|
|
|
— |
|
|
|
— |
|
|
|
495 |
|
| (Gains) losses from life block transactions, net |
|
|
— |
|
|
|
296 |
|
|
|
— |
|
|
|
— |
|
|
|
296 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Expenses related to restructuring, net |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME (LOSS) |
|
$ |
(173 |
) |
|
$ |
31 |
|
|
$ |
22 |
|
|
$ |
40 |
|
|
$ |
(80 |
) |
|
$ |
1 |
|
|
$ |
13 |
|
|
$ |
39 |
|
|
$ |
21 |
|
|
$ |
74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (operating income (loss)) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
NM |
(1) |
|
|
35.2 |
% |
|
|
35.4 |
% |
|
|
39.3 |
% |
|
|
36.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
| SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Term Life |
|
$ |
6 |
|
|
$ |
7 |
|
|
$ |
9 |
|
|
$ |
9 |
|
|
$ |
31 |
|
|
$ |
11 |
|
|
$ |
13 |
|
|
$ |
14 |
|
|
$ |
13 |
|
|
$ |
51 |
|
| Universal Life |
|
|
3 |
|
|
|
2 |
|
|
|
4 |
|
|
|
4 |
|
|
|
13 |
|
|
|
7 |
|
|
|
11 |
|
|
|
7 |
|
|
|
6 |
|
|
|
31 |
|
| Linked-Benefits |
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
4 |
|
|
|
10 |
|
|
|
5 |
|
|
|
4 |
|
|
|
5 |
|
|
|
2 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Sales |
|
$ |
10 |
|
|
$ |
12 |
|
|
$ |
15 |
|
|
$ |
17 |
|
|
$ |
54 |
|
|
$ |
23 |
|
|
$ |
28 |
|
|
$ |
26 |
|
|
$ |
21 |
|
|
$ |
98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
“NM” is defined as not meaningful for percentages greater than 200%. |
36
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Income and Sales—U.S. Life Insurance Segment—Fixed Annuities
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
4 |
|
|
$ |
4 |
|
|
$ |
3 |
|
|
$ |
10 |
|
|
$ |
21 |
|
|
$ |
45 |
|
|
$ |
41 |
|
|
$ |
14 |
|
|
$ |
11 |
|
|
$ |
111 |
|
| Net investment income |
|
|
223 |
|
|
|
227 |
|
|
|
230 |
|
|
|
231 |
|
|
|
911 |
|
|
|
240 |
|
|
|
242 |
|
|
|
242 |
|
|
|
242 |
|
|
|
966 |
|
| Net investment gains (losses) |
|
|
(22 |
) |
|
|
(12 |
) |
|
|
(7 |
) |
|
|
(10 |
) |
|
|
(51 |
) |
|
|
6 |
|
|
|
(8 |
) |
|
|
(1 |
) |
|
|
2 |
|
|
|
(1 |
) |
| Policy fees and other income |
|
|
3 |
|
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
|
10 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
208 |
|
|
|
221 |
|
|
|
229 |
|
|
|
233 |
|
|
|
891 |
|
|
|
292 |
|
|
|
277 |
|
|
|
257 |
|
|
|
257 |
|
|
|
1,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
81 |
|
|
|
82 |
|
|
|
76 |
|
|
|
75 |
|
|
|
314 |
|
|
|
121 |
|
|
|
116 |
|
|
|
95 |
|
|
|
85 |
|
|
|
417 |
|
| Interest credited |
|
|
80 |
|
|
|
82 |
|
|
|
82 |
|
|
|
84 |
|
|
|
328 |
|
|
|
87 |
|
|
|
88 |
|
|
|
89 |
|
|
|
88 |
|
|
|
352 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
18 |
|
|
|
16 |
|
|
|
17 |
|
|
|
17 |
|
|
|
68 |
|
|
|
17 |
|
|
|
18 |
|
|
|
14 |
|
|
|
18 |
|
|
|
67 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
19 |
|
|
|
19 |
|
|
|
18 |
|
|
|
17 |
|
|
|
73 |
|
|
|
28 |
|
|
|
20 |
|
|
|
22 |
|
|
|
23 |
|
|
|
93 |
|
| Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
198 |
|
|
|
199 |
|
|
|
193 |
|
|
|
193 |
|
|
|
783 |
|
|
|
253 |
|
|
|
242 |
|
|
|
220 |
|
|
|
214 |
|
|
|
929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
10 |
|
|
|
22 |
|
|
|
36 |
|
|
|
40 |
|
|
|
108 |
|
|
|
39 |
|
|
|
35 |
|
|
|
37 |
|
|
|
43 |
|
|
|
154 |
|
| Provision for income taxes |
|
|
3 |
|
|
|
8 |
|
|
|
13 |
|
|
|
14 |
|
|
|
38 |
|
|
|
13 |
|
|
|
12 |
|
|
|
13 |
|
|
|
16 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME FROM CONTINUING OPERATIONS |
|
|
7 |
|
|
|
14 |
|
|
|
23 |
|
|
|
26 |
|
|
|
70 |
|
|
|
26 |
|
|
|
23 |
|
|
|
24 |
|
|
|
27 |
|
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTMENT TO INCOME FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment (gains) losses, net |
|
|
12 |
|
|
|
5 |
|
|
|
2 |
|
|
|
5 |
|
|
|
24 |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME |
|
$ |
19 |
|
|
$ |
19 |
|
|
$ |
25 |
|
|
$ |
31 |
|
|
$ |
94 |
|
|
$ |
23 |
|
|
$ |
26 |
|
|
$ |
24 |
|
|
$ |
27 |
|
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (operating income) |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
35.3 |
% |
|
|
33.3 |
% |
|
|
34.8 |
% |
|
|
35.5 |
% |
|
|
36.2 |
% |
|
|
35.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
| SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Single Premium Deferred Annuities |
|
$ |
297 |
|
|
$ |
248 |
|
|
$ |
211 |
|
|
$ |
306 |
|
|
$ |
1,062 |
|
|
$ |
439 |
|
|
$ |
322 |
|
|
$ |
400 |
|
|
$ |
492 |
|
|
$ |
1,653 |
|
| Single Premium Immediate Annuities |
|
|
17 |
|
|
|
12 |
|
|
|
13 |
|
|
|
20 |
|
|
|
62 |
|
|
|
56 |
|
|
|
49 |
|
|
|
29 |
|
|
|
28 |
|
|
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Sales |
|
$ |
314 |
|
|
$ |
260 |
|
|
$ |
224 |
|
|
$ |
326 |
|
|
$ |
1,124 |
|
|
$ |
495 |
|
|
$ |
371 |
|
|
$ |
429 |
|
|
$ |
520 |
|
|
$ |
1,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37
Runoff Segment
38
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Income (Loss)—Runoff Segment
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
3 |
|
| Net investment income |
|
|
35 |
|
|
|
32 |
|
|
|
40 |
|
|
|
31 |
|
|
|
138 |
|
|
|
32 |
|
|
|
32 |
|
|
|
33 |
|
|
|
32 |
|
|
|
129 |
|
| Net investment gains (losses) |
|
|
(30 |
) |
|
|
(25 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(69 |
) |
|
|
(23 |
) |
|
|
(33 |
) |
|
|
3 |
|
|
|
(13 |
) |
|
|
(66 |
) |
| Policy fees and other income |
|
|
45 |
|
|
|
46 |
|
|
|
49 |
|
|
|
49 |
|
|
|
189 |
|
|
|
51 |
|
|
|
53 |
|
|
|
52 |
|
|
|
53 |
|
|
|
209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
50 |
|
|
|
53 |
|
|
|
82 |
|
|
|
74 |
|
|
|
259 |
|
|
|
60 |
|
|
|
53 |
|
|
|
89 |
|
|
|
73 |
|
|
|
275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
8 |
|
|
|
18 |
|
|
|
11 |
|
|
|
7 |
|
|
|
44 |
|
|
|
10 |
|
|
|
13 |
|
|
|
6 |
|
|
|
8 |
|
|
|
37 |
|
| Interest credited |
|
|
32 |
|
|
|
31 |
|
|
|
31 |
|
|
|
30 |
|
|
|
124 |
|
|
|
31 |
|
|
|
30 |
|
|
|
29 |
|
|
|
29 |
|
|
|
119 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
19 |
|
|
|
17 |
|
|
|
21 |
|
|
|
19 |
|
|
|
76 |
|
|
|
22 |
|
|
|
22 |
|
|
|
20 |
|
|
|
20 |
|
|
|
84 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
(3 |
) |
|
|
17 |
|
|
|
10 |
|
|
|
5 |
|
|
|
29 |
|
|
|
13 |
|
|
|
5 |
|
|
|
10 |
|
|
|
11 |
|
|
|
39 |
|
| Interest expense |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
56 |
|
|
|
83 |
|
|
|
74 |
|
|
|
61 |
|
|
|
274 |
|
|
|
76 |
|
|
|
70 |
|
|
|
66 |
|
|
|
68 |
|
|
|
280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(6 |
) |
|
|
(30 |
) |
|
|
8 |
|
|
|
13 |
|
|
|
(15 |
) |
|
|
(16 |
) |
|
|
(17 |
) |
|
|
23 |
|
|
|
5 |
|
|
|
(5 |
) |
| Provision (benefit) for income taxes |
|
|
(3 |
) |
|
|
(12 |
) |
|
|
2 |
|
|
|
3 |
|
|
|
(10 |
) |
|
|
(19 |
) |
|
|
(5 |
) |
|
|
5 |
|
|
|
— |
|
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
(3 |
) |
|
|
(18 |
) |
|
|
6 |
|
|
|
10 |
|
|
|
(5 |
) |
|
|
3 |
|
|
|
(12 |
) |
|
|
18 |
|
|
|
5 |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTMENT TO INCOME (LOSS) FROM CONTINUING OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment (gains) losses, net |
|
|
14 |
|
|
|
14 |
|
|
|
3 |
|
|
|
1 |
|
|
|
32 |
|
|
|
13 |
|
|
|
17 |
|
|
|
(3 |
) |
|
|
7 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME (LOSS) |
|
$ |
11 |
|
|
$ |
(4 |
) |
|
$ |
9 |
|
|
$ |
11 |
|
|
$ |
27 |
|
|
$ |
16 |
|
|
$ |
5 |
|
|
$ |
15 |
|
|
$ |
12 |
|
|
$ |
48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (operating income (loss)) |
|
|
26.6 |
% |
|
|
49.2 |
% |
|
|
25.7 |
% |
|
|
26.7 |
% |
|
|
19.9 |
% |
|
|
NM |
(1) |
|
|
48.2 |
% |
|
|
16.1 |
% |
|
|
25.1 |
% |
|
|
-1.0 |
% |
| (1) |
“NM” is defined as not meaningful for percentages greater than 200%. |
39
Corporate and Other
40
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Operating Loss—Corporate and Other(1)
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums |
|
$ |
6 |
|
|
$ |
7 |
|
|
$ |
5 |
|
|
$ |
7 |
|
|
$ |
25 |
|
|
$ |
7 |
|
|
$ |
7 |
|
|
$ |
7 |
|
|
$ |
8 |
|
|
$ |
29 |
|
| Net investment income |
|
|
3 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
(6 |
) |
|
|
(3 |
) |
|
|
4 |
|
|
|
(8 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
(10 |
) |
| Net investment gains (losses) |
|
|
6 |
|
|
|
9 |
|
|
|
3 |
|
|
|
11 |
|
|
|
29 |
|
|
|
4 |
|
|
|
9 |
|
|
|
(6 |
) |
|
|
(5 |
) |
|
|
2 |
|
| Policy fees and other income |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
(10 |
) |
|
|
2 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
15 |
|
|
|
15 |
|
|
|
(1 |
) |
|
|
12 |
|
|
|
41 |
|
|
|
17 |
|
|
|
7 |
|
|
|
2 |
|
|
|
(4 |
) |
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BENEFITS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits and other changes in policy reserves |
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
5 |
|
|
|
14 |
|
|
|
6 |
|
|
|
8 |
|
|
|
6 |
|
|
|
4 |
|
|
|
24 |
|
| Acquisition and operating expenses, net of deferrals |
|
|
154 |
|
|
|
40 |
|
|
|
22 |
|
|
|
14 |
|
|
|
230 |
|
|
|
18 |
|
|
|
11 |
|
|
|
21 |
|
|
|
19 |
|
|
|
69 |
|
| Amortization of deferred acquisition costs and intangibles |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
3 |
|
| Interest expense |
|
|
74 |
|
|
|
75 |
|
|
|
74 |
|
|
|
75 |
|
|
|
298 |
|
|
|
76 |
|
|
|
74 |
|
|
|
82 |
|
|
|
82 |
|
|
|
314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
231 |
|
|
|
118 |
|
|
|
99 |
|
|
|
95 |
|
|
|
543 |
|
|
|
101 |
|
|
|
94 |
|
|
|
109 |
|
|
|
106 |
|
|
|
410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
(216 |
) |
|
|
(103 |
) |
|
|
(100 |
) |
|
|
(83 |
) |
|
|
(502 |
) |
|
|
(84 |
) |
|
|
(87 |
) |
|
|
(107 |
) |
|
|
(110 |
) |
|
|
(388 |
) |
| Provision (benefit) for income taxes |
|
|
(28 |
) |
|
|
(33 |
) |
|
|
(39 |
) |
|
|
(30 |
) |
|
|
(130 |
) |
|
|
(18 |
) |
|
|
5 |
|
|
|
(30 |
) |
|
|
(50 |
) |
|
|
(93 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOSS FROM CONTINUING OPERATIONS |
|
|
(188 |
) |
|
|
(70 |
) |
|
|
(61 |
) |
|
|
(53 |
) |
|
|
(372 |
) |
|
|
(66 |
) |
|
|
(92 |
) |
|
|
(77 |
) |
|
|
(60 |
) |
|
|
(295 |
) |
| Income (loss) from discontinued operations, net of taxes |
|
|
(73 |
) |
|
|
(21 |
) |
|
|
(314 |
) |
|
|
1 |
|
|
|
(407 |
) |
|
|
138 |
|
|
|
6 |
|
|
|
4 |
|
|
|
9 |
|
|
|
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) |
|
|
(261 |
) |
|
|
(91 |
) |
|
|
(375 |
) |
|
|
(52 |
) |
|
|
(779 |
) |
|
|
72 |
|
|
|
(86 |
) |
|
|
(73 |
) |
|
|
(51 |
) |
|
|
(138 |
) |
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTMENTS TO NET INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment (gains) losses, net |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(20 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
|
|
4 |
|
|
|
4 |
|
|
|
(2 |
) |
| (Gains) losses on sale of business, net |
|
|
134 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
141 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| (Gains) losses on early extinguishment of debt, net |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Expenses related to restructuring, net |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Tax impact from potential business portfolio changes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
| (Income) loss from discontinued operations, net of taxes |
|
|
73 |
|
|
|
21 |
|
|
|
314 |
|
|
|
(1 |
) |
|
|
407 |
|
|
|
(138 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
(9 |
) |
|
|
(157 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING
LOSS(2) |
|
$ |
(58 |
) |
|
$ |
(68 |
) |
|
$ |
(62 |
) |
|
$ |
(60 |
) |
|
$ |
(248 |
) |
|
$ |
(39 |
) |
|
$ |
(98 |
) |
|
$ |
(73 |
) |
|
$ |
(56 |
) |
|
$ |
(266 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (operating loss) |
|
|
27.4 |
% |
|
|
40.0 |
% |
|
|
40.2 |
% |
|
|
34.0 |
% |
|
|
36.0 |
% |
|
|
57.1 |
% |
|
|
-1.6 |
% |
|
|
27.4 |
% |
|
|
46.1 |
% |
|
|
32.0 |
% |
|
(1) Includes inter-segment
eliminations and the results of other businesses that are managed outside of the operating segments. (2) Operating results of certain smaller international mortgage insurance businesses are included above. Metrics for these businesses were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| Net Operating Loss |
|
$ |
(4 |
) |
|
$ |
(5 |
) |
|
$ |
(5 |
) |
|
$ |
(6 |
) |
|
$ |
(20 |
) |
|
$ |
(7 |
) |
|
$ |
(7 |
) |
|
$ |
(7 |
) |
|
$ |
(4 |
) |
|
$ |
(25 |
) |
| Loss Ratio(a) |
|
|
62 |
% |
|
|
48 |
% |
|
|
43 |
% |
|
|
81 |
% |
|
|
59 |
% |
|
|
84 |
% |
|
|
105 |
% |
|
|
90 |
% |
|
|
55 |
% |
|
|
83 |
% |
| GAAP Basis Expense Ratio(b),(c) |
|
|
145 |
% |
|
|
143 |
% |
|
|
143 |
% |
|
|
125 |
% |
|
|
139 |
% |
|
|
115 |
% |
|
|
126 |
% |
|
|
131 |
% |
|
|
107 |
% |
|
|
120 |
% |
| The loss and expense ratios included above were calculated using
whole dollars and may be different than the ratios calculated using the rounded numbers included herein.
(a) The ratio of incurred losses and
loss adjustment expenses to net earned premiums.
(b) The ratio of an insurer’s
general expenses to net earned premiums. In the business, general expenses consist of acquisition and operating expenses, net of deferrals, and amortization of DAC and intangibles.
(c) Includes the impact of
settlements and cancelled insurance contracts, primarily in Europe. |
|
41
Additional Financial Data
42
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Investments Summary
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
| |
|
|
|
Carrying
Amount |
|
|
% of
Total |
|
|
Carrying
Amount |
|
|
% of
Total |
|
|
Carrying
Amount |
|
|
% of
Total |
|
|
Carrying
Amount |
|
|
% of
Total |
|
|
Carrying
Amount |
|
|
% of
Total |
|
| Composition of Investment Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Public fixed maturity securities |
|
$ |
31,969 |
|
|
|
43 |
% |
|
$ |
33,541 |
|
|
|
44 |
% |
|
$ |
33,407 |
|
|
|
45 |
% |
|
$ |
34,555 |
|
|
|
44 |
% |
|
$ |
34,159 |
|
|
|
45 |
% |
| Private fixed maturity securities |
|
|
10,822 |
|
|
|
15 |
|
|
|
10,908 |
|
|
|
15 |
|
|
|
10,777 |
|
|
|
14 |
|
|
|
10,879 |
|
|
|
14 |
|
|
|
10,939 |
|
|
|
14 |
|
| Residential mortgage-backed securities(1) |
|
|
4,998 |
|
|
|
7 |
|
|
|
5,008 |
|
|
|
7 |
|
|
|
4,954 |
|
|
|
7 |
|
|
|
5,011 |
|
|
|
6 |
|
|
|
5,082 |
|
|
|
7 |
|
| Commercial mortgage-backed securities |
|
|
2,475 |
|
|
|
3 |
|
|
|
2,492 |
|
|
|
3 |
|
|
|
2,475 |
|
|
|
3 |
|
|
|
2,548 |
|
|
|
3 |
|
|
|
2,491 |
|
|
|
3 |
|
| Other asset-backed securities |
|
|
3,253 |
|
|
|
4 |
|
|
|
3,904 |
|
|
|
5 |
|
|
|
3,837 |
|
|
|
5 |
|
|
|
3,766 |
|
|
|
5 |
|
|
|
3,669 |
|
|
|
5 |
|
| State and political subdivisions |
|
|
2,428 |
|
|
|
3 |
|
|
|
2,447 |
|
|
|
3 |
|
|
|
2,388 |
|
|
|
3 |
|
|
|
2,350 |
|
|
|
3 |
|
|
|
2,222 |
|
|
|
3 |
|
| Non-investment grade fixed maturity securities |
|
|
2,252 |
|
|
|
3 |
|
|
|
2,346 |
|
|
|
3 |
|
|
|
2,530 |
|
|
|
3 |
|
|
|
2,623 |
|
|
|
4 |
|
|
|
2,515 |
|
|
|
3 |
|
| Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stocks and mutual funds |
|
|
37 |
|
|
|
— |
|
|
|
37 |
|
|
|
— |
|
|
|
62 |
|
|
|
— |
|
|
|
134 |
|
|
|
— |
|
|
|
187 |
|
|
|
— |
|
| Preferred stocks |
|
|
273 |
|
|
|
— |
|
|
|
236 |
|
|
|
— |
|
|
|
237 |
|
|
|
1 |
|
|
|
165 |
|
|
|
— |
|
|
|
88 |
|
|
|
— |
|
| Commercial mortgage loans |
|
|
6,170 |
|
|
|
8 |
|
|
|
6,133 |
|
|
|
8 |
|
|
|
6,175 |
|
|
|
8 |
|
|
|
6,149 |
|
|
|
8 |
|
|
|
6,100 |
|
|
|
8 |
|
| Restricted commercial mortgage loans related to securitization entities |
|
|
161 |
|
|
|
— |
|
|
|
175 |
|
|
|
— |
|
|
|
181 |
|
|
|
— |
|
|
|
188 |
|
|
|
— |
|
|
|
201 |
|
|
|
— |
|
| Policy loans |
|
|
1,568 |
|
|
|
2 |
|
|
|
1,567 |
|
|
|
2 |
|
|
|
1,584 |
|
|
|
2 |
|
|
|
1,506 |
|
|
|
2 |
|
|
|
1,501 |
|
|
|
2 |
|
| Cash, cash equivalents and short-term investments |
|
|
6,162 |
|
|
|
8 |
|
|
|
4,003 |
|
|
|
6 |
|
|
|
4,413 |
|
|
|
6 |
|
|
|
5,315 |
|
|
|
7 |
|
|
|
4,883 |
|
|
|
7 |
|
| Securities lending |
|
|
347 |
|
|
|
— |
|
|
|
367 |
|
|
|
— |
|
|
|
337 |
|
|
|
— |
|
|
|
323 |
|
|
|
1 |
|
|
|
289 |
|
|
|
1 |
|
| Other invested assets: |
|
Limited partnerships |
|
|
188 |
|
|
|
— |
|
|
|
195 |
|
|
|
— |
|
|
|
216 |
|
|
|
— |
|
|
|
215 |
|
|
|
— |
|
|
|
252 |
|
|
|
— |
|
|
|
Derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term care (LTC) forward starting swap—cash flow |
|
|
629 |
|
|
|
1 |
|
|
|
768 |
|
|
|
1 |
|
|
|
423 |
|
|
|
1 |
|
|
|
948 |
|
|
|
1 |
|
|
|
639 |
|
|
|
1 |
|
|
|
Other cash flow |
|
|
8 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
Equity index options—non-qualified |
|
|
30 |
|
|
|
— |
|
|
|
15 |
|
|
|
— |
|
|
|
12 |
|
|
|
— |
|
|
|
15 |
|
|
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
Other non-qualified |
|
|
445 |
|
|
|
1 |
|
|
|
534 |
|
|
|
1 |
|
|
|
416 |
|
|
|
— |
|
|
|
512 |
|
|
|
1 |
|
|
|
470 |
|
|
|
— |
|
|
|
Trading portfolio |
|
|
447 |
|
|
|
1 |
|
|
|
458 |
|
|
|
1 |
|
|
|
368 |
|
|
|
1 |
|
|
|
218 |
|
|
|
— |
|
|
|
241 |
|
|
|
— |
|
|
|
Restricted other invested assets related to securitization entities |
|
|
413 |
|
|
|
1 |
|
|
|
412 |
|
|
|
1 |
|
|
|
410 |
|
|
|
1 |
|
|
|
411 |
|
|
|
1 |
|
|
|
411 |
|
|
|
1 |
|
|
|
Other |
|
|
18 |
|
|
|
— |
|
|
|
51 |
|
|
|
— |
|
|
|
52 |
|
|
|
— |
|
|
|
49 |
|
|
|
— |
|
|
|
56 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total invested assets and cash |
|
$ |
75,093 |
|
|
|
100 |
% |
|
$ |
75,605 |
|
|
|
100 |
% |
|
$ |
75,262 |
|
|
|
100 |
% |
|
$ |
77,889 |
|
|
|
100 |
% |
|
$ |
76,418 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Public Fixed Maturity Securities—Credit Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NRSRO(2) Designation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AAA |
|
|
|
$ |
14,785 |
|
|
|
34 |
% |
|
$ |
15,057 |
|
|
|
33 |
% |
|
$ |
14,920 |
|
|
|
33 |
% |
|
$ |
15,520 |
|
|
|
33 |
% |
|
$ |
15,599 |
|
|
|
34 |
% |
| AA |
|
|
|
|
4,121 |
|
|
|
10 |
|
|
|
4,603 |
|
|
|
10 |
|
|
|
4,763 |
|
|
|
11 |
|
|
|
4,849 |
|
|
|
11 |
|
|
|
4,730 |
|
|
|
10 |
|
| A |
|
|
|
|
12,155 |
|
|
|
28 |
|
|
|
13,485 |
|
|
|
30 |
|
|
|
13,376 |
|
|
|
30 |
|
|
|
13,781 |
|
|
|
30 |
|
|
|
13,572 |
|
|
|
30 |
|
| BBB |
|
|
|
|
10,720 |
|
|
|
25 |
|
|
|
10,667 |
|
|
|
24 |
|
|
|
10,576 |
|
|
|
23 |
|
|
|
10,715 |
|
|
|
23 |
|
|
|
10,490 |
|
|
|
23 |
|
| BB |
|
|
|
|
1,200 |
|
|
|
3 |
|
|
|
1,234 |
|
|
|
3 |
|
|
|
1,276 |
|
|
|
3 |
|
|
|
1,385 |
|
|
|
3 |
|
|
|
1,361 |
|
|
|
3 |
|
| B |
|
|
|
|
63 |
|
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
68 |
|
|
|
— |
|
|
|
76 |
|
|
|
— |
|
|
|
76 |
|
|
|
— |
|
| CCC and lower |
|
|
|
|
92 |
|
|
|
— |
|
|
|
95 |
|
|
|
— |
|
|
|
99 |
|
|
|
— |
|
|
|
108 |
|
|
|
— |
|
|
|
112 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total public fixed maturity securities |
|
$ |
43,136 |
|
|
|
100 |
% |
|
$ |
45,191 |
|
|
|
100 |
% |
|
$ |
45,078 |
|
|
|
100 |
% |
|
$ |
46,434 |
|
|
|
100 |
% |
|
$ |
45,940 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Private Fixed Maturity Securities—Credit Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NRSRO(2) Designation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AAA |
|
|
|
$ |
1,531 |
|
|
|
10 |
% |
|
$ |
1,725 |
|
|
|
11 |
% |
|
$ |
1,641 |
|
|
|
11 |
% |
|
$ |
1,509 |
|
|
|
10 |
% |
|
$ |
1,564 |
|
|
|
10 |
% |
| AA |
|
|
|
|
1,899 |
|
|
|
13 |
|
|
|
1,966 |
|
|
|
13 |
|
|
|
1,941 |
|
|
|
13 |
|
|
|
1,945 |
|
|
|
13 |
|
|
|
1,995 |
|
|
|
13 |
|
| A |
|
|
|
|
4,731 |
|
|
|
31 |
|
|
|
4,737 |
|
|
|
31 |
|
|
|
4,781 |
|
|
|
31 |
|
|
|
4,792 |
|
|
|
31 |
|
|
|
4,538 |
|
|
|
30 |
|
| BBB |
|
|
|
|
6,003 |
|
|
|
40 |
|
|
|
6,060 |
|
|
|
39 |
|
|
|
5,840 |
|
|
|
38 |
|
|
|
5,998 |
|
|
|
39 |
|
|
|
6,074 |
|
|
|
40 |
|
| BB |
|
|
|
|
777 |
|
|
|
5 |
|
|
|
839 |
|
|
|
5 |
|
|
|
973 |
|
|
|
6 |
|
|
|
910 |
|
|
|
6 |
|
|
|
792 |
|
|
|
5 |
|
| B |
|
|
|
|
104 |
|
|
|
1 |
|
|
|
114 |
|
|
|
1 |
|
|
|
101 |
|
|
|
1 |
|
|
|
126 |
|
|
|
1 |
|
|
|
95 |
|
|
|
1 |
|
| CCC and lower |
|
|
|
|
16 |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
18 |
|
|
|
— |
|
|
|
79 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total private fixed maturity securities |
|
$ |
15,061 |
|
|
|
100 |
% |
|
$ |
15,455 |
|
|
|
100 |
% |
|
$ |
15,290 |
|
|
|
100 |
% |
|
$ |
15,298 |
|
|
|
100 |
% |
|
$ |
15,137 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The company does not have any material exposure to residential mortgage-backed securities collateralized debt obligations (CDOs). |
| (2) |
Nationally Recognized Statistical Rating Organizations. |
43
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Fixed Maturity Securities Summary
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
| |
|
Fair Value |
|
|
% of
Total |
|
|
Fair Value |
|
|
% of
Total |
|
|
Fair Value |
|
|
% of
Total |
|
|
Fair Value |
|
|
% of
Total |
|
|
Fair Value |
|
|
% of
Total |
|
| Fixed Maturity Securities—Security Sector: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. government, agencies and government-sponsored enterprises |
|
$ |
6,203 |
|
|
|
11 |
% |
|
$ |
5,913 |
|
|
|
10 |
% |
|
$ |
5,721 |
|
|
|
9 |
% |
|
$ |
6,132 |
|
|
|
10 |
% |
|
$ |
6,000 |
|
|
|
10 |
% |
| State and political subdivisions |
|
|
2,438 |
|
|
|
4 |
|
|
|
2,448 |
|
|
|
4 |
|
|
|
2,389 |
|
|
|
4 |
|
|
|
2,351 |
|
|
|
4 |
|
|
|
2,222 |
|
|
|
4 |
|
| Foreign government |
|
|
2,015 |
|
|
|
3 |
|
|
|
1,935 |
|
|
|
3 |
|
|
|
1,955 |
|
|
|
3 |
|
|
|
1,837 |
|
|
|
3 |
|
|
|
1,902 |
|
|
|
3 |
|
| U.S. corporate |
|
|
24,401 |
|
|
|
42 |
|
|
|
25,679 |
|
|
|
43 |
|
|
|
25,135 |
|
|
|
42 |
|
|
|
25,806 |
|
|
|
42 |
|
|
|
25,223 |
|
|
|
41 |
|
| Foreign corporate |
|
|
12,199 |
|
|
|
21 |
|
|
|
13,027 |
|
|
|
22 |
|
|
|
13,628 |
|
|
|
23 |
|
|
|
13,961 |
|
|
|
23 |
|
|
|
14,095 |
|
|
|
23 |
|
| Residential mortgage-backed securities |
|
|
5,101 |
|
|
|
9 |
|
|
|
5,118 |
|
|
|
8 |
|
|
|
5,085 |
|
|
|
9 |
|
|
|
5,153 |
|
|
|
8 |
|
|
|
5,228 |
|
|
|
9 |
|
| Commercial mortgage-backed securities |
|
|
2,559 |
|
|
|
4 |
|
|
|
2,587 |
|
|
|
4 |
|
|
|
2,582 |
|
|
|
4 |
|
|
|
2,690 |
|
|
|
4 |
|
|
|
2,702 |
|
|
|
4 |
|
| Other asset-backed securities |
|
|
3,281 |
|
|
|
6 |
|
|
|
3,939 |
|
|
|
6 |
|
|
|
3,873 |
|
|
|
6 |
|
|
|
3,802 |
|
|
|
6 |
|
|
|
3,705 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total fixed maturity securities |
|
$ |
58,197 |
|
|
|
100 |
% |
|
$ |
60,646 |
|
|
|
100 |
% |
|
$ |
60,368 |
|
|
|
100 |
% |
|
$ |
61,732 |
|
|
|
100 |
% |
|
$ |
61,077 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bond Holdings—Industry Sector: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment Grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance and insurance |
|
$ |
7,746 |
|
|
|
22 |
% |
|
$ |
8,290 |
|
|
|
23 |
% |
|
$ |
8,047 |
|
|
|
22 |
% |
|
$ |
8,219 |
|
|
|
22 |
% |
|
$ |
8,123 |
|
|
|
22 |
% |
| Utilities |
|
|
4,453 |
|
|
|
13 |
|
|
|
4,618 |
|
|
|
12 |
|
|
|
4,568 |
|
|
|
12 |
|
|
|
4,788 |
|
|
|
13 |
|
|
|
4,683 |
|
|
|
13 |
|
| Energy |
|
|
3,839 |
|
|
|
11 |
|
|
|
4,249 |
|
|
|
11 |
|
|
|
4,403 |
|
|
|
12 |
|
|
|
4,555 |
|
|
|
12 |
|
|
|
4,517 |
|
|
|
12 |
|
| Consumer—non-cyclical |
|
|
4,619 |
|
|
|
13 |
|
|
|
4,647 |
|
|
|
13 |
|
|
|
4,504 |
|
|
|
12 |
|
|
|
4,614 |
|
|
|
12 |
|
|
|
4,580 |
|
|
|
12 |
|
| Consumer—cyclical |
|
|
2,119 |
|
|
|
6 |
|
|
|
2,288 |
|
|
|
6 |
|
|
|
2,319 |
|
|
|
6 |
|
|
|
2,361 |
|
|
|
6 |
|
|
|
2,343 |
|
|
|
6 |
|
| Capital goods |
|
|
2,361 |
|
|
|
7 |
|
|
|
2,461 |
|
|
|
7 |
|
|
|
2,434 |
|
|
|
7 |
|
|
|
2,417 |
|
|
|
7 |
|
|
|
2,410 |
|
|
|
7 |
|
| Industrial |
|
|
1,915 |
|
|
|
6 |
|
|
|
2,130 |
|
|
|
6 |
|
|
|
2,224 |
|
|
|
6 |
|
|
|
2,309 |
|
|
|
6 |
|
|
|
2,240 |
|
|
|
6 |
|
| Technology and communications |
|
|
2,872 |
|
|
|
8 |
|
|
|
3,095 |
|
|
|
8 |
|
|
|
3,107 |
|
|
|
9 |
|
|
|
3,091 |
|
|
|
8 |
|
|
|
3,024 |
|
|
|
8 |
|
| Transportation |
|
|
1,689 |
|
|
|
5 |
|
|
|
1,695 |
|
|
|
5 |
|
|
|
1,629 |
|
|
|
5 |
|
|
|
1,687 |
|
|
|
4 |
|
|
|
1,610 |
|
|
|
4 |
|
| Other |
|
|
3,049 |
|
|
|
9 |
|
|
|
3,213 |
|
|
|
9 |
|
|
|
3,356 |
|
|
|
9 |
|
|
|
3,508 |
|
|
|
10 |
|
|
|
3,732 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
34,662 |
|
|
|
100 |
% |
|
|
36,686 |
|
|
|
100 |
% |
|
|
36,591 |
|
|
|
100 |
% |
|
|
37,549 |
|
|
|
100 |
% |
|
|
37,262 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-Investment Grade: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance and insurance |
|
|
359 |
|
|
|
19 |
% |
|
|
381 |
|
|
|
19 |
% |
|
|
443 |
|
|
|
20 |
% |
|
|
471 |
|
|
|
21 |
% |
|
|
480 |
|
|
|
23 |
% |
| Utilities |
|
|
83 |
|
|
|
4 |
|
|
|
67 |
|
|
|
3 |
|
|
|
68 |
|
|
|
3 |
|
|
|
67 |
|
|
|
3 |
|
|
|
84 |
|
|
|
5 |
|
| Energy |
|
|
348 |
|
|
|
18 |
|
|
|
400 |
|
|
|
20 |
|
|
|
409 |
|
|
|
19 |
|
|
|
363 |
|
|
|
16 |
|
|
|
261 |
|
|
|
13 |
|
| Consumer—non-cyclical |
|
|
229 |
|
|
|
12 |
|
|
|
230 |
|
|
|
11 |
|
|
|
257 |
|
|
|
12 |
|
|
|
262 |
|
|
|
12 |
|
|
|
229 |
|
|
|
11 |
|
| Consumer—cyclical |
|
|
82 |
|
|
|
4 |
|
|
|
98 |
|
|
|
5 |
|
|
|
99 |
|
|
|
5 |
|
|
|
117 |
|
|
|
5 |
|
|
|
91 |
|
|
|
4 |
|
| Capital goods |
|
|
193 |
|
|
|
10 |
|
|
|
204 |
|
|
|
10 |
|
|
|
234 |
|
|
|
11 |
|
|
|
236 |
|
|
|
11 |
|
|
|
214 |
|
|
|
10 |
|
| Industrial |
|
|
244 |
|
|
|
13 |
|
|
|
254 |
|
|
|
13 |
|
|
|
240 |
|
|
|
11 |
|
|
|
238 |
|
|
|
11 |
|
|
|
260 |
|
|
|
13 |
|
| Technology and communications |
|
|
309 |
|
|
|
16 |
|
|
|
293 |
|
|
|
14 |
|
|
|
336 |
|
|
|
15 |
|
|
|
365 |
|
|
|
16 |
|
|
|
354 |
|
|
|
17 |
|
| Transportation |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
19 |
|
|
|
1 |
|
|
|
19 |
|
|
|
1 |
|
| Other |
|
|
89 |
|
|
|
4 |
|
|
|
91 |
|
|
|
5 |
|
|
|
83 |
|
|
|
4 |
|
|
|
80 |
|
|
|
4 |
|
|
|
64 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
1,938 |
|
|
|
100 |
% |
|
|
2,020 |
|
|
|
100 |
% |
|
|
2,172 |
|
|
|
100 |
% |
|
|
2,218 |
|
|
|
100 |
% |
|
|
2,056 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
36,600 |
|
|
|
100 |
% |
|
$ |
38,706 |
|
|
|
100 |
% |
|
$ |
38,763 |
|
|
|
100 |
% |
|
$ |
39,767 |
|
|
|
100 |
% |
|
$ |
39,318 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed Maturity Securities—Contractual Maturity Dates: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Due in one year or less |
|
$ |
1,744 |
|
|
|
3 |
% |
|
$ |
2,075 |
|
|
|
4 |
% |
|
$ |
2,003 |
|
|
|
3 |
% |
|
$ |
1,830 |
|
|
|
3 |
% |
|
$ |
2,020 |
|
|
|
3 |
% |
| Due after one year through five years |
|
|
10,192 |
|
|
|
18 |
|
|
|
10,817 |
|
|
|
18 |
|
|
|
10,935 |
|
|
|
19 |
|
|
|
10,838 |
|
|
|
18 |
|
|
|
10,623 |
|
|
|
18 |
|
| Due after five years through ten years |
|
|
11,917 |
|
|
|
20 |
|
|
|
12,155 |
|
|
|
20 |
|
|
|
12,212 |
|
|
|
20 |
|
|
|
12,193 |
|
|
|
20 |
|
|
|
12,328 |
|
|
|
20 |
|
| Due after ten years |
|
|
23,403 |
|
|
|
40 |
|
|
|
23,955 |
|
|
|
40 |
|
|
|
23,678 |
|
|
|
39 |
|
|
|
25,226 |
|
|
|
41 |
|
|
|
24,471 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
47,256 |
|
|
|
81 |
|
|
|
49,002 |
|
|
|
82 |
|
|
|
48,828 |
|
|
|
81 |
|
|
|
50,087 |
|
|
|
82 |
|
|
|
49,442 |
|
|
|
81 |
|
| Mortgage and asset-backed securities |
|
|
10,941 |
|
|
|
19 |
|
|
|
11,644 |
|
|
|
18 |
|
|
|
11,540 |
|
|
|
19 |
|
|
|
11,645 |
|
|
|
18 |
|
|
|
11,635 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total fixed maturity securities |
|
$ |
58,197 |
|
|
|
100 |
% |
|
$ |
60,646 |
|
|
|
100 |
% |
|
$ |
60,368 |
|
|
|
100 |
% |
|
$ |
61,732 |
|
|
|
100 |
% |
|
$ |
61,077 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
General Account GAAP Net Investment Income Yields
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| GAAP Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed maturity securities—taxable |
|
$ |
634 |
|
|
$ |
647 |
|
|
$ |
645 |
|
|
$ |
632 |
|
|
$ |
2,558 |
|
|
$ |
658 |
|
|
$ |
643 |
|
|
$ |
658 |
|
|
$ |
639 |
|
|
$ |
2,598 |
|
| Fixed maturity securities—non-taxable |
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
12 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
12 |
|
| Commercial mortgage loans |
|
|
85 |
|
|
|
84 |
|
|
|
83 |
|
|
|
85 |
|
|
|
337 |
|
|
|
87 |
|
|
|
82 |
|
|
|
81 |
|
|
|
83 |
|
|
|
333 |
|
| Restricted commercial mortgage loans related to securitization entities |
|
|
4 |
|
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
14 |
|
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
14 |
|
| Equity securities |
|
|
4 |
|
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
15 |
|
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
14 |
|
| Other invested assets |
|
|
30 |
|
|
|
22 |
|
|
|
17 |
|
|
|
33 |
|
|
|
102 |
|
|
|
22 |
|
|
|
17 |
|
|
|
12 |
|
|
|
18 |
|
|
|
69 |
|
| Limited partnerships |
|
|
2 |
|
|
|
4 |
|
|
|
20 |
|
|
|
7 |
|
|
|
33 |
|
|
|
2 |
|
|
|
10 |
|
|
|
13 |
|
|
|
11 |
|
|
|
36 |
|
| Restricted other invested assets related to securitization entities |
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
| Policy loans |
|
|
36 |
|
|
|
33 |
|
|
|
35 |
|
|
|
33 |
|
|
|
137 |
|
|
|
34 |
|
|
|
32 |
|
|
|
32 |
|
|
|
31 |
|
|
|
129 |
|
| Cash, cash equivalents and short-term investments |
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
3 |
|
|
|
13 |
|
|
|
5 |
|
|
|
7 |
|
|
|
7 |
|
|
|
5 |
|
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross investment income before expenses and fees |
|
|
803 |
|
|
|
803 |
|
|
|
815 |
|
|
|
805 |
|
|
|
3,226 |
|
|
|
819 |
|
|
|
801 |
|
|
|
815 |
|
|
|
799 |
|
|
|
3,234 |
|
| Expenses and fees |
|
|
(22 |
) |
|
|
(20 |
) |
|
|
(22 |
) |
|
|
(24 |
) |
|
|
(88 |
) |
|
|
(22 |
) |
|
|
(23 |
) |
|
|
(24 |
) |
|
|
(23 |
) |
|
|
(92 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
$ |
781 |
|
|
$ |
783 |
|
|
$ |
793 |
|
|
$ |
781 |
|
|
$ |
3,138 |
|
|
$ |
797 |
|
|
$ |
778 |
|
|
$ |
791 |
|
|
$ |
776 |
|
|
$ |
3,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annualized Yields |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed maturity securities—taxable |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.7 |
% |
|
|
4.6 |
% |
|
|
4.8 |
% |
|
|
4.7 |
% |
|
|
4.7 |
% |
| Fixed maturity securities—non-taxable |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
3.4 |
% |
|
|
3.5 |
% |
|
|
3.7 |
% |
|
|
3.5 |
% |
| Commercial mortgage loans |
|
|
5.5 |
% |
|
|
5.5 |
% |
|
|
5.4 |
% |
|
|
5.6 |
% |
|
|
5.5 |
% |
|
|
5.7 |
% |
|
|
5.4 |
% |
|
|
5.5 |
% |
|
|
5.6 |
% |
|
|
5.6 |
% |
| Restricted commercial mortgage loans related to securitization entities |
|
|
9.5 |
% |
|
|
6.4 |
% |
|
|
7.2 |
% |
|
|
8.2 |
% |
|
|
8.0 |
% |
|
|
5.8 |
% |
|
|
6.6 |
% |
|
|
6.7 |
% |
|
|
7.0 |
% |
|
|
6.6 |
% |
| Equity securities |
|
|
5.1 |
% |
|
|
4.0 |
% |
|
|
5.6 |
% |
|
|
6.1 |
% |
|
|
5.2 |
% |
|
|
4.6 |
% |
|
|
4.4 |
% |
|
|
5.5 |
% |
|
|
5.2 |
% |
|
|
5.0 |
% |
| Other invested assets |
|
|
27.4 |
% |
|
|
22.2 |
% |
|
|
24.2 |
% |
|
|
60.6 |
% |
|
|
30.7 |
% |
|
|
37.1 |
% |
|
|
27.7 |
% |
|
|
18.7 |
% |
|
|
26.3 |
% |
|
|
27.3 |
% |
| Limited partnerships(1) |
|
|
4.2 |
% |
|
|
7.8 |
% |
|
|
37.0 |
% |
|
|
12.0 |
% |
|
|
15.5 |
% |
|
|
3.1 |
% |
|
|
15.3 |
% |
|
|
19.6 |
% |
|
|
16.1 |
% |
|
|
13.6 |
% |
| Restricted other invested assets related to securitization entities |
|
|
2.0 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
1.3 |
% |
|
|
2.1 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
1.3 |
% |
| Policy loans |
|
|
9.2 |
% |
|
|
8.4 |
% |
|
|
9.1 |
% |
|
|
8.8 |
% |
|
|
8.9 |
% |
|
|
9.0 |
% |
|
|
8.5 |
% |
|
|
8.7 |
% |
|
|
8.6 |
% |
|
|
8.7 |
% |
| Cash, cash equivalents and short-term investments |
|
|
0.2 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.2 |
% |
|
|
0.3 |
% |
|
|
0.5 |
% |
|
|
0.8 |
% |
|
|
0.7 |
% |
|
|
0.5 |
% |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross investment income before expenses and fees |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.7 |
% |
|
|
4.6 |
% |
|
|
4.7 |
% |
|
|
4.7 |
% |
|
|
4.7 |
% |
| Expenses and fees |
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
|
4.5 |
% |
|
|
4.5 |
% |
|
|
4.5 |
% |
|
|
4.5 |
% |
|
|
4.5 |
% |
|
|
4.6 |
% |
|
|
4.5 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields are based on net investment income as reported under GAAP and are consistent with how the company measures its
investment performance for management purposes. Yields are annualized, for interim periods, and are calculated as net investment income as a percentage of average quarterly asset carrying values except for fixed maturity and equity securities,
derivatives and derivative counterparty collateral, which exclude unrealized fair value adjustments and securities lending activity, which is included in other invested assets and is calculated net of the corresponding securities lending liability.
See page 49 herein for average invested assets and cash used in the yield calculation.
| (1) |
Limited partnership investments are equity-based and do not have fixed returns by period. |
45
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Net Investment Gains (Losses), Net—Detail(1)
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
| Net realized gains (losses) on available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. corporate |
|
$ |
7 |
|
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5 |
|
|
$ |
1 |
|
|
$ |
5 |
|
|
$ |
(6 |
) |
|
$ |
(9 |
) |
|
$ |
(9 |
) |
| U.S. government, agencies and government-sponsored enterprises |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
3 |
|
| Foreign corporate |
|
|
(4 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
1 |
|
|
|
2 |
|
|
|
13 |
|
|
|
(3 |
) |
|
|
13 |
|
| Foreign government |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
| Tax-exempt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
| Mortgage-backed securities |
|
|
— |
|
|
|
(2 |
) |
|
|
1 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
| Asset-backed securities |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Equity securities |
|
|
— |
|
|
|
2 |
|
|
|
8 |
|
|
|
5 |
|
|
|
15 |
|
|
|
1 |
|
|
|
2 |
|
|
|
6 |
|
|
|
1 |
|
|
|
10 |
|
| Foreign exchange |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net realized gains (losses) on available-for-sale securities |
|
|
4 |
|
|
|
(3 |
) |
|
|
9 |
|
|
|
3 |
|
|
|
13 |
|
|
|
5 |
|
|
|
8 |
|
|
|
16 |
|
|
|
(12 |
) |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impairments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alt-A residential mortgage-backed securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
| Financial hybrid securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
| Corporate fixed maturity securities |
|
|
(9 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Commercial mortgage loans |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
| Other asset-backed securities |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total impairments |
|
|
(9 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(17 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unrealized gains (losses) on trading securities |
|
|
(6 |
) |
|
|
8 |
|
|
|
(11 |
) |
|
|
4 |
|
|
|
(5 |
) |
|
|
10 |
|
|
|
3 |
|
|
|
5 |
|
|
|
8 |
|
|
|
26 |
|
| Derivative instruments |
|
|
2 |
|
|
|
(34 |
) |
|
|
4 |
|
|
|
(21 |
) |
|
|
(49 |
) |
|
|
(24 |
) |
|
|
(25 |
) |
|
|
(4 |
) |
|
|
(14 |
) |
|
|
(67 |
) |
| Limited partnerships |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
| Commercial mortgage loans held-for-sale market valuation allowance |
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
8 |
|
| Contingent purchase price valuation change |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
| Net gains (losses) related to securitization entities |
|
|
(2 |
) |
|
|
— |
|
|
|
1 |
|
|
|
5 |
|
|
|
4 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
6 |
|
|
|
4 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment gains (losses), net of taxes |
|
|
(10 |
) |
|
|
(33 |
) |
|
|
5 |
|
|
|
(10 |
) |
|
|
(48 |
) |
|
|
(6 |
) |
|
|
(18 |
) |
|
|
23 |
|
|
|
(13 |
) |
|
|
(14 |
) |
| Adjustment for DAC and other intangible amortization and certain benefit reserves, net of taxes |
|
|
8 |
|
|
|
6 |
|
|
|
5 |
|
|
|
4 |
|
|
|
23 |
|
|
|
1 |
|
|
|
6 |
|
|
|
1 |
|
|
|
1 |
|
|
|
9 |
|
| Adjustment for net investment (gains) losses attributable to noncontrolling interests, net of taxes |
|
|
2 |
|
|
|
5 |
|
|
|
(6 |
) |
|
|
5 |
|
|
|
6 |
|
|
|
1 |
|
|
|
2 |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment gains (losses), net |
|
$ |
— |
|
|
$ |
(22 |
) |
|
$ |
4 |
|
|
$ |
(1 |
) |
|
$ |
(19 |
) |
|
$ |
(4 |
) |
|
$ |
(10 |
) |
|
$ |
20 |
|
|
$ |
(11 |
) |
|
$ |
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
All adjustments for income taxes assume a 35% tax rate. |
46
Reconciliations of Non-GAAP Measures
47
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Reconciliation of Operating ROE
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Twelve Month Rolling Average ROE |
|
Twelve months ended |
|
| |
|
December 31,
2015 |
|
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| GAAP Basis ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the twelve months ended(1) |
|
$ |
(615 |
) |
|
$ |
(1,083 |
) |
|
$ |
(1,643 |
) |
|
$ |
(1,274 |
) |
|
$ |
(1,244 |
) |
| Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)(2) |
|
$ |
10,281 |
|
|
$ |
10,564 |
|
|
$ |
10,958 |
|
|
$ |
11,288 |
|
|
$ |
11,532 |
|
| GAAP Basis ROE(1)/(2) |
|
|
-6.0 |
% |
|
|
-10.3 |
% |
|
|
-15.0 |
% |
|
|
-11.3 |
% |
|
|
-10.8 |
% |
|
|
|
|
|
|
| Operating ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net operating income (loss) for the twelve months ended(1) |
|
$ |
255 |
|
|
$ |
(78 |
) |
|
$ |
(465 |
) |
|
$ |
(430 |
) |
|
$ |
(398 |
) |
| Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss)(2) |
|
$ |
10,281 |
|
|
$ |
10,564 |
|
|
$ |
10,958 |
|
|
$ |
11,288 |
|
|
$ |
11,532 |
|
| Operating ROE(1)/(2) |
|
|
2.5 |
% |
|
|
-0.7 |
% |
|
|
-4.2 |
% |
|
|
-3.8 |
% |
|
|
-3.5 |
% |
|
|
| Quarterly Average ROE |
|
Three months ended |
|
| |
|
December 31,
2015 |
|
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| GAAP Basis ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) available to Genworth Financial, Inc.’s common stockholders for the period ended(3) |
|
$ |
(292 |
) |
|
$ |
(284 |
) |
|
$ |
(193 |
) |
|
$ |
154 |
|
|
$ |
(760 |
) |
| Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive
income (loss)(4) |
|
$ |
9,958 |
|
|
$ |
10,241 |
|
|
$ |
10,507 |
|
|
$ |
10,555 |
|
|
$ |
10,854 |
|
| Annualized GAAP Quarterly Basis ROE(3)/(4) |
|
|
-11.7 |
% |
|
|
-11.1 |
% |
|
|
-7.3 |
% |
|
|
5.8 |
% |
|
|
-28.0 |
% |
|
|
|
|
|
|
| Operating ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net operating income (loss) for the period ended(3) |
|
$ |
(82 |
) |
|
$ |
64 |
|
|
$ |
119 |
|
|
$ |
154 |
|
|
$ |
(415 |
) |
| Quarterly average Genworth Financial, Inc.’s stockholders’ equity for the period, excluding accumulated other comprehensive
income (loss)(4) |
|
$ |
9,958 |
|
|
$ |
10,241 |
|
|
$ |
10,507 |
|
|
$ |
10,555 |
|
|
$ |
10,854 |
|
| Annualized Operating Quarterly Basis ROE(3)/(4) |
|
|
-3.3 |
% |
|
|
2.5 |
% |
|
|
4.5 |
% |
|
|
5.8 |
% |
|
|
-15.3 |
% |
Non-GAAP Definition for Operating ROE
The company references the non-GAAP financial measure entitled “operating return on equity” or “operating ROE.” The company defines
operating ROE as net operating income (loss) divided by average ending Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss) in average ending Genworth Financial, Inc.’s
stockholders’ equity. Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE is not a substitute for net income (loss) available to Genworth
Financial, Inc.’s common stockholders divided by average ending Genworth Financial, Inc.’s stockholders’ equity determined in accordance with GAAP.
| (1) |
The twelve months ended information is derived by adding the four quarters of net income (loss) available to Genworth Financial, Inc.’s common stockholders and net operating income (loss) from page 9 herein.
|
| (2) |
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss), is derived by averaging ending Genworth Financial, Inc.’s stockholders’
equity, excluding accumulated other comprehensive income (loss), for the most recent five quarters. |
| (3) |
Net income (loss) available to Genworth Financial, Inc.’s common stockholders and net operating income (loss) from page 9 herein. |
| (4) |
Quarterly average Genworth Financial, Inc.’s stockholders’ equity, excluding accumulated other comprehensive income (loss), is derived by averaging ending Genworth Financial, Inc.’s stockholders’
equity, excluding accumulated other comprehensive income (loss). |
48
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Reconciliation of Core Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
2015 |
|
|
2014 |
|
| |
|
(Assets—amounts in billions) |
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
4Q |
|
|
3Q |
|
|
2Q |
|
|
1Q |
|
|
Total |
|
|
|
Reported—Total Invested Assets and Cash |
|
$ |
75.1 |
|
|
$ |
75.6 |
|
|
$ |
75.3 |
|
|
$ |
77.9 |
|
|
$ |
75.1 |
|
|
$ |
76.4 |
|
|
$ |
74.8 |
|
|
$ |
74.9 |
|
|
$ |
72.8 |
|
|
$ |
76.4 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities lending |
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
Unrealized gains (losses) |
|
|
4.2 |
|
|
|
5.4 |
|
|
|
4.9 |
|
|
|
7.8 |
|
|
|
4.2 |
|
|
|
6.6 |
|
|
|
5.3 |
|
|
|
5.5 |
|
|
|
4.2 |
|
|
|
6.6 |
|
|
|
Derivative counterparty collateral |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.4 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted end of period invested assets and cash |
|
$ |
70.6 |
|
|
$ |
69.8 |
|
|
$ |
70.1 |
|
|
$ |
69.8 |
|
|
$ |
70.6 |
|
|
$ |
69.5 |
|
|
$ |
68.7 |
|
|
$ |
68.7 |
|
|
$ |
67.9 |
|
|
$ |
69.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (A) |
|
Average Invested Assets and Cash Used in Reported Yield Calculation |
|
$ |
70.2 |
|
|
$ |
70.0 |
|
|
$ |
70.0 |
|
|
$ |
69.7 |
|
|
$ |
70.0 |
|
|
$ |
69.1 |
|
|
$ |
68.7 |
|
|
$ |
68.3 |
|
|
$ |
67.9 |
|
|
$ |
68.5 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted commercial mortgage loans and other invested assets related to securitization entities(1) |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (B) |
|
Average Invested Assets and Cash Used in Core Yield Calculation |
|
|
70.0 |
|
|
|
69.8 |
|
|
|
69.8 |
|
|
|
69.5 |
|
|
|
69.8 |
|
|
|
68.9 |
|
|
|
68.5 |
|
|
|
68.1 |
|
|
|
67.7 |
|
|
|
68.3 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolios supporting floating products and non-recourse funding
obligations(2) |
|
|
3.5 |
|
|
|
3.5 |
|
|
|
3.6 |
|
|
|
3.7 |
|
|
|
3.6 |
|
|
|
3.9 |
|
|
|
4.0 |
|
|
|
4.2 |
|
|
|
4.3 |
|
|
|
4.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (C) |
|
Average Invested Assets and Cash Used in Core Yield (excl. Floating and Non-Recourse Funding) Calculation |
|
$ |
66.5 |
|
|
$ |
66.3 |
|
|
$ |
66.2 |
|
|
$ |
65.8 |
|
|
$ |
66.2 |
|
|
$ |
65.0 |
|
|
$ |
64.5 |
|
|
$ |
63.9 |
|
|
$ |
63.4 |
|
|
$ |
64.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Income—amounts in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (D) |
|
Reported—Net Investment Income |
|
$ |
781 |
|
|
$ |
783 |
|
|
$ |
793 |
|
|
$ |
781 |
|
|
$ |
3,138 |
|
|
$ |
797 |
|
|
$ |
778 |
|
|
$ |
791 |
|
|
$ |
776 |
|
|
$ |
3,142 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond calls and commercial mortgage loan prepayments |
|
|
18 |
|
|
|
12 |
|
|
|
17 |
|
|
|
14 |
|
|
|
61 |
|
|
|
18 |
|
|
|
17 |
|
|
|
7 |
|
|
|
10 |
|
|
|
52 |
|
|
|
Other non-core items(3) |
|
|
(2 |
) |
|
|
1 |
|
|
|
(4 |
) |
|
|
7 |
|
|
|
2 |
|
|
|
8 |
|
|
|
(22 |
) |
|
|
8 |
|
|
|
(7 |
) |
|
|
(13 |
) |
|
|
Restricted commercial mortgage loans and other invested assets related to securitization entities(1) |
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
10 |
|
|
|
2 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (E) |
|
Core Net Investment Income |
|
|
762 |
|
|
|
768 |
|
|
|
778 |
|
|
|
757 |
|
|
|
3,065 |
|
|
|
769 |
|
|
|
780 |
|
|
|
773 |
|
|
|
770 |
|
|
|
3,092 |
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income from portfolios supporting floating products and non-recourse funding obligations(2) |
|
|
16 |
|
|
|
21 |
|
|
|
26 |
|
|
|
20 |
|
|
|
83 |
|
|
|
21 |
|
|
|
22 |
|
|
|
23 |
|
|
|
21 |
|
|
|
87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (F) |
|
Core Net Investment Income (excl. Floating and Non-Recourse Funding) |
|
$ |
746 |
|
|
$ |
747 |
|
|
$ |
752 |
|
|
$ |
737 |
|
|
$ |
2,982 |
|
|
$ |
748 |
|
|
$ |
758 |
|
|
$ |
750 |
|
|
$ |
749 |
|
|
$ |
3,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (D) / (A) |
|
Reported Yield |
|
|
4.45 |
% |
|
|
4.47 |
% |
|
|
4.53 |
% |
|
|
4.48 |
% |
|
|
4.48 |
% |
|
|
4.61 |
% |
|
|
4.53 |
% |
|
|
4.63 |
% |
|
|
4.57 |
% |
|
|
4.59 |
% |
| (E) / (B) |
|
Core Yield |
|
|
4.35 |
% |
|
|
4.40 |
% |
|
|
4.46 |
% |
|
|
4.36 |
% |
|
|
4.39 |
% |
|
|
4.46 |
% |
|
|
4.55 |
% |
|
|
4.54 |
% |
|
|
4.55 |
% |
|
|
4.52 |
% |
| (F) / (C) |
|
Core Yield (excl. Floating and Non-Recourse Funding) |
|
|
4.49 |
% |
|
|
4.51 |
% |
|
|
4.54 |
% |
|
|
4.48 |
% |
|
|
4.51 |
% |
|
|
4.60 |
% |
|
|
4.70 |
% |
|
|
4.69 |
% |
|
|
4.73 |
% |
|
|
4.68 |
% |
| Notes: |
Columns may not add due to rounding. |
| |
Yields have been annualized. |
Non-GAAP Definition for Core Yield
The company references the non-GAAP financial measure entitled “core yield” as a measure of investment yield. The company defines core yield as the
investment yield adjusted for items that do not reflect the underlying performance of the investment portfolio. Management believes that analysis of core yield enhances understanding of the investment yield of the company. However, core yield is not
a substitute for investment yield determined in accordance with GAAP.
| (1) |
Represents the incremental assets and investment income related to restricted commercial mortgage loans and other invested assets. |
| (2) |
Floating products refer to institutional products and the non-recourse funding obligations that support certain term and universal life insurance reserves in the company’s life insurance business.
|
| (3) |
Includes cost basis adjustments on structured securities and various other immaterial items. |
49
Corporate Information
50
GENWORTH FINANCIAL, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2015
Financial Strength Ratings As Of February 3, 2016
|
|
|
|
|
|
|
| Company |
|
Standard & Poor’s Financial
Services LLC (S&P) |
|
Moody’s Investors Service, Inc.
(Moody’s) |
|
A.M. Best Company, Inc.
(A.M. Best) |
| Genworth Mortgage Insurance Corporation |
|
BB+ |
|
Ba1 |
|
Not rated |
| Genworth Financial Mortgage Insurance Company Canada(1) |
|
A+ |
|
Not rated |
|
Not rated |
| Genworth Financial Mortgage Insurance Pty Limited (Australia)(2) |
|
A+ |
|
A3 |
|
Not rated |
| Genworth Financial Mortgage Insurance Limited (Europe) |
|
BB- |
|
Not rated |
|
Not rated |
| Genworth Life Insurance Company |
|
BBB- |
|
Baa1 |
|
A- |
| Genworth Life and Annuity Insurance Company |
|
BBB- |
|
Baa1 |
|
A- |
| Genworth Life Insurance Company of New York |
|
BBB- |
|
Baa1 |
|
A- |
The S&P, Moody’s, A.M. Best, Dominion Bond Rating Service (DBRS) and Fitch Rating Service (Fitch) ratings included are
not designed to be, and do not serve as, measures of protection or valuation offered to investors. These financial strength ratings should not be relied on with respect to making an investment in the company’s securities.
S&P states that insurers rated “A” (Strong), “BBB” (Good) or “BB” (Marginal) have strong, good or marginal financial security
characteristics, respectively. The “A,” “BBB” and “BB” ranges are the third-, fourth- and fifth-highest of nine financial strength rating ranges assigned by S&P, which range from “AAA” to “R.” A
plus (+) or minus (-) shows relative standing within a major rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “CCC” category. Accordingly, the “A+,”
“BBB-,” “BB+” and “BB-” ratings are the fifth-, tenth-, eleventh- and thirteenth-highest of S&P’s 21 ratings categories.
Moody’s states that insurance companies rated “A” (Good) offer good financial security, that insurance companies rated “Baa” (Adequate)
offer adequate financial security and that insurance companies rated “Ba” (Questionable) offer questionable financial security. The “A” (Good), “Baa” (Adequate) and “Ba” (Questionable) ranges are the third-,
fourth- and fifth-highest, respectively, of nine financial strength rating ranges assigned by Moody’s, which range from “Aaa” to “C.” Numeric modifiers are used to refer to the ranking within the group, with 1 being the
highest and 3 being the lowest. These modifiers are not added to ratings in the “Aaa” category or to ratings below the “Caa” category. Accordingly, the “A3,” “Baa1” and “Ba1” ratings are the
seventh-, eighth- and eleventh-highest, respectively, of Moody’s 21 ratings categories.
A.M. Best states that the “A-” (Excellent) rating is
assigned to those companies that have, in its opinion, an excellent ability to meet their ongoing insurance obligations. The “A-” (Excellent) rating is the fourth-highest of 15 ratings assigned by A.M. Best, which range from
“A++” to “F.”
DBRS states that long-term obligations rated “AA” are of superior credit quality. The capacity for
the payment of financial obligations is considered high and unlikely to be significantly vulnerable to future events. Credit quality differs from “AAA” only to a small degree.
The Australian mortgage insurance subsidiary also solicits a rating from Fitch. Fitch states that “A” (Strong) rated insurance companies are viewed as
possessing strong capacity to meet policyholder and contract obligations. The “A” rating category is the third-highest of nine financial strength rating categories, which range from “AAA” to “C.” The symbol (+) or
(-) may be appended to a rating to indicate the relative position of a credit within a rating category. These suffixes are not added to ratings in the “AAA” category or to ratings below the “B” category. Accordingly, the
“A+” rating is the fifth-highest of Fitch’s 21 ratings categories.
The company also solicits a rating from HR Ratings on a local scale
for Genworth Seguros de Credito a la Vivienda S.A. de C.V., its Mexican mortgage insurance subsidiary, with a short-term rating of “HR1” and long-term rating of “HR AA.” For short-term ratings, HR Ratings states that
“HR1” rated companies are viewed as exhibiting high capacity for timely payment of debt obligations in the short-term and maintain low credit risk. The “HR1” short-term rating category is the highest of six short-term rating
categories, which range from “HR1” to “HR D.” For long-term ratings, HR Ratings states that “HR AA” rated companies are viewed as having high credit quality and offer high safety for timely payment of debt obligations
and maintain low credit risk under adverse economic scenarios. The “HR AA” long-term rating is the second-highest of HR Rating’s eight long-term rating categories, which range from “HR AAA” to “HR D.”
S&P, Moody’s, A.M. Best, DBRS, Fitch and HR Ratings review their ratings periodically and the company cannot assure you that it will maintain the
current ratings in the future. Other agencies may also rate the company or its insurance subsidiaries on a solicited or an unsolicited basis.
| (1) |
Genworth Financial Mortgage Insurance Company Canada is also rated “AA” by DBRS. |
| (2) |
Genworth Financial Mortgage Insurance Pty Limited (Australia) is also rated “A+” by Fitch. |
51
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