Executed $63M in share repurchases in the quarter; $434M in total executed through April 30, 2024, at an average price of $5.42 per share

Enact announced an increase to its quarterly dividend, as well as a new share repurchase program with authorization to purchase up to $250M of common stock

Continued progress on the LTC1 multi-year rate action plan (MYRAP) with $41M of gross incremental premium approvals; $28.3B net present value achieved from in-force rate actions (IFAs) since 2012

CareScout continued to expand the CareScout Quality Network, a first-of-its-kind group of long-term care providers who meet high quality standards and are committed to person-centered care

Net income2 of $139M, or $0.31 per diluted share, and adjusted operating income2,3 of $85M, or $0.19 per diluted share

Enact reported adjusted operating income of $135M2; distributed $61M in capital returns to Genworth

U.S. life insurance companies’ RBC4 ratio of 314%5 driven by strong statutory income

Genworth holding company cash and liquid assets of $253M at quarter-end

Consolidated Metrics

(Amounts in millions, except per share data)

Net income (loss)2

Earnings (loss) per diluted share2

Adjusted operating income (loss)2,3

Adjusted operating income (loss) per diluted share2,3

Weighted-average diluted shares6

Net income in the quarter was driven by Enact, which had very strong operating performance, as well as positive LTC earnings, partially offset by losses in Corporate and Other

Net investment gains, net of taxes, increased net income by $39 million in the current quarter, compared with net investment gains of $30 million in the prior quarter and net investment losses of $9 million in the prior year. The investment gains in the current quarter were driven primarily by mark-to-market adjustments on limited partnerships and equity securities, partially offset by net trading losses

Changes in the fair value of market risk benefits, net of taxes, increased net income by $18 million in the quarter driven primarily by the favorable change in the interest rate yield curve, compared with decreases of $11 million in the prior quarter and $13 million in the prior year

Net investment income was $782 million in the quarter, down from $810 million in the prior quarter primarily driven by lower income from limited partnerships

GAAP Operating Metrics

(Dollar amounts in millions)

Adjusted operating income2

Primary new insurance written

Loss ratio

Equity7

Current quarter results reflect a pre-tax reserve release of $54 million primarily from favorable cure performance on delinquencies from early 2023 and prior. The prior quarter and prior year included pre-tax reserve releases of $53 million and $70 million, respectively

Net investment income of $57 million in the current quarter was up from $46 million in the prior year from higher yields and higher average invested assets

Primary insurance in-force increased four percent versus the prior year to $264 billion driven by new insurance written (NIW) and continued elevated persistency

Primary NIW was down 20 percent versus the prior year primarily due to a smaller mortgage insurance market and elevated mortgage rates

New delinquencies increased 19 percent to 11,395 from 9,599 in the prior year primarily from the aging of large, newer books. New delinquencies for the quarter were more than offset by strong cure performance

Capital Metric

PMIERs Sufficiency Ratio5,8

Enact announced an increase to its quarterly dividend from $0.16 to $0.185 per share, payable in June 2024

Enact also announced a new share repurchase program with authorization to purchase up to $250 million of common stock

Enact paid a quarterly dividend of $0.16 per share in the current quarter

Estimated PMIERs sufficiency ratio of 163 percent, $1,883 million above requirements

GAAP Operating Metrics

(Amounts in millions)

Adjusted operating income (loss)

Premiums

Net investment income

Liability remeasurement gains (losses)

Cash flow assumption updates

Actual to expected experience

Premiums decreased versus the prior quarter primarily driven by seasonal trends and versus the prior year primarily from policy terminations and policies entering paid-up status. While legal settlements have reduced LTC tail-risk, they have accelerated the decline in renewal premiums, which also decreased the premium impact from IFAs versus the prior quarter

Net investment income declined versus the prior quarter and the prior year driven primarily by lower limited partnership income

Current quarter liability remeasurement gain included seasonally high mortality, though lower than the prior year

Prior quarter included a liability remeasurement loss of $188 million pre-tax, which included $61 million of assumption updates

GAAP Adjusted Operating Income (Loss)

(Amounts in millions)

Life Insurance

Fixed Annuities

Variable Annuities

Total Life and Annuities

Results reflect unfavorable impact from seasonally high mortality, though lower than the prior year

Premiums and deferred acquisition costs amortization were lower versus the prior year primarily driven by block runoff

Prior quarter included an unfavorable $179 million after-tax impact for annual assumption updates

Fixed annuities results included favorable mortality. Lower net spreads primarily related to block runoff versus the prior year

Prior quarter variable annuities results included favorable impacts of annual assumption updates

(Dollar amounts in millions)

Statutory Pre-Tax Income (Loss)5,10

Long-Term Care Insurance

Life Insurance

Fixed Annuities

Variable Annuities

GLIC Consolidated RBC Ratio5

Statutory pre-tax income was $258 million in the current quarter:

LTC continued to benefit from premium increases and benefit reductions from IFAs and legal settlements, as well as the favorable impacts of seasonally high mortality

Life insurance results included unfavorable impacts of seasonally high mortality. Prior quarter results included a $99 million pre-tax benefit from annual assumption updates

Fixed annuities results reflect favorable mortality, but lower net spread income primarily from block runoff

Variable annuity results included a benefit from the impact of equity market and interest rate performance

Current quarter GLIC consolidated RBC ratio was 314 percent, up from the prior quarter driven primarily by earnings in LTC and variable annuities

The current quarter adjusted operating loss was $38 million, up from $25 million in the prior quarter and $18 million in the prior year primarily driven by $15 million of tax related timing items and higher expenses related to CareScout

(Amounts in millions)

Holding Company Cash and Liquid Assets11,12

Cash and liquid assets of $253 million remained above the company’s cash target of two-times annual debt service

Cash inflows during the current quarter consisted of $61 million from Enact capital returns, which included a $21 million quarterly dividend and $40 million in share repurchase proceeds

Current quarter cash outflows included $78 million primarily related to employee benefit payments, which are reimbursed by the subsidiary businesses, $63 million in share repurchases, $12 million related to debt servicing costs and the repurchase of $6 million principal of the company’s subordinated notes

In the first quarter of 2024, the company repurchased $63 million of its common stock at an average price of $6.17 per share leaving 440 million shares outstanding at the end of the quarter

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the inability to successfully launch new lines of business, including long-term care insurance and other products and services the company is pursuing with CareScout;

the company’s failure to maintain self-sustainability of its legacy life insurance subsidiaries, including as a result of the inability to achieve desired levels of in-force rate actions and/or the timing of its future premium rate increases and associated benefit reductions taking longer to achieve than originally assumed; other regulatory actions negatively impacting the company’s life insurance businesses;

inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results (including as a result of any changes in connection with quarterly, annual or other reviews);

the impact on holding company liquidity caused by an inability to receive dividends or any other returns of capital from Enact Holdings, and limited sources of capital and financing and the need to seek additional capital on unfavorable terms;

adverse changes to the structure or requirements of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or the U.S. mortgage insurance market; an increase in the number of loans insured through federal government mortgage insurance programs, including those offered by the Federal Housing Administration; the inability of Enact Holdings and/or its U.S. mortgage insurance subsidiaries to continue to meet the requirements mandated by PMIERs (or any adverse changes thereto), inability to meet minimum statutory capital requirements of applicable regulators or the mortgage insurer eligibility requirements of Fannie Mae or Freddie Mac;

changes in economic, market and political conditions including as a result of elevated inflation, labor shortages and elevated interest rates, which could heighten the risk of a future recession; unanticipated financial events, which could lead to market-wide liquidity problems and other significant market disruption resulting in losses, defaults or credit rating downgrades of other financial institutions; deterioration in economic conditions, a recession or a decline in home prices, all of which could be driven by many potential factors; political and economic instability or changes in government policies, and fluctuations in international securities markets;

downgrades in financial strength and credit ratings and potential adverse impacts to liquidity; counterparty credit risks; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of invested assets;

changes in tax rates or tax laws, or changes in accounting and reporting standards;

litigation and regulatory investigations or other actions, including commercial and contractual disputes with counterparties;

the inability to retain, attract and motivate qualified employees or senior management;

the loss of significant key customers and distribution relationships by Enact Holdings;

the impact from deficiencies in the company’s disclosure controls and procedures or internal control over financial reporting;

the occurrence of natural or man-made disasters, including geopolitical tensions and war (including the Russian invasion of Ukraine and the Israel-Hamas conflict), a public health emergency, including pandemics, or climate change;

the inability to effectively manage information technology systems (including artificial intelligence), cyber incidents or other failures, disruptions or security breaches of the company or its third-party vendors, as well as unknown risks and uncertainties associated with artificial intelligence;

the inability of third-party vendors to meet their obligations to the company;

the lack of availability, affordability or adequacy of reinsurance to protect the company against losses;

a decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations;

unanticipated claims against Enact Holdings’ delegated underwriting program;

the impact of medical advances such as genetic research and diagnostic imaging, emerging new technology, including artificial intelligence and related legislation; and

other factors described in the risk factors contained in Item 1A of the company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 29, 2024.

Three months

ended
December 31,

Revenues:

Premiums

Net investment income

Net investment gains (losses)

Policy fees and other income

Total revenues

Benefits and expenses:

Benefits and other changes in policy reserves

Liability remeasurement (gains) losses

Changes in fair value of market risk benefits and associated hedges

Interest credited

Acquisition and operating expenses, net of deferrals

Amortization of deferred acquisition costs and intangibles

Interest expense

Total benefits and expenses

Income (loss) from continuing operations before income taxes

Provision (benefit) for income taxes

Income (loss) from continuing operations

Loss from discontinued operations, net of taxes

Net income (loss)

Less: net income attributable to noncontrolling interests

Net income (loss) available to Genworth Financial, Inc.’s common stockholders

Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted6

Net income (loss) available to Genworth Financial, Inc.’s common stockholders

Add: net income attributable to noncontrolling interests

Net income (loss)

Less: loss from discontinued operations, net of taxes

Income (loss) from continuing operations

Less: net income from continuing operations attributable to noncontrolling interests

Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders

Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders:

Net investment (gains) losses, net13

Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges14

(Gains) losses on early extinguishment of debt

Expenses related to restructuring

Taxes on adjustments

Adjusted operating income (loss)

Adjusted operating income (loss):

Enact segment

Long-Term Care Insurance segment

Life and Annuities segment:

Life Insurance

Fixed Annuities

Variable Annuities

Total Life and Annuities segment

Corporate and Other

Adjusted operating income (loss)

Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share:

Basic

Diluted

Adjusted operating income (loss) per share:

Basic

Diluted

Weighted-average common shares outstanding:

Basic

Diluted6

Long-term care insurance.

All references reflect amounts available to Genworth’s common stockholders.

This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (GAAP). See the Use of Non-GAAP Measures section of this press release for additional information.

Risk-based capital ratio based on company action level for GLIC consolidated.

Company estimate for the first quarter of 2024 due to timing of the preparation of the filing(s).

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 company’s loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended December 31, 2023, 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 performance stock units, restricted stock units and other equity-based awards of 6.3 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended December 31, 2023, dilutive potential weighted-average common shares outstanding would have been 455.7 million.

Reflects Genworth’s ownership of equity including accumulated other comprehensive income and excluding noncontrolling interests of $873 million, $855 million and $793 million in the first quarter of 2024 and the fourth and first quarters of 2023, respectively.

The Private Mortgage Insurer Eligibility Requirements (PMIERs) sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs.

Genworth’s principal U.S. life insurance companies: GLIC, GLAIC and GLICNY.

Net gain from operations before dividends to policyholders, refunds to members and federal income taxes for Genworth Life Insurance Company (GLIC), Genworth Life and Annuity Insurance Company (GLAIC) and Genworth Life Insurance Company of New York (GLICNY), and before realized capital gains or (losses).

Holding company cash and 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.

Genworth Holdings, Inc. held no short-term investments or U.S. government securities as of March 31, 2024, December 31, 2023 and March 31, 2023.

Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million for the three months ended March 31, 2024.

Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(3) million for both the three months ended March 31, 2024 and 2023 and $(1) million for the three months ended December 31, 2023.