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
 
December 14, 2004
Date of Report
(Date of earliest event reported)

 
GENWORTH FINANCIAL, INC.
(Exact name of registrant as specified in its charter)

 
					
Delaware	 	001-32195	 	33-1073076	
(State or other jurisdiction of
incorporation or organization)	 	(Commission File Number)	 	(I.R.S. Employer
Identification No.)	

6620 West Broad Street, Richmond, VA	 	23230	
(Address of principal executive offices)	 	(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 December 14, 2004, Genworth Financial, Inc. released additional selected financial information for the first three quarters of 2004, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
The information contained in this Current Report on Form 8-K (including the exhibit) 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 be 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(c). Financial Statements and Exhibits.
 
The following material is furnished as an exhibit to this Current Report on Form 8-K:

Exhibit
Number
	 	Description of Exhibit
	
99.1	 	First Quarter 2004, Second Quarter 2004, Third Quarter 2004 Selected Financial Information.	
 
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.
 
Date: December 14, 2004

GENWORTH FINANCIAL, INC.	
		
By:	 	/s/ Richard P. McKenney
	
 	 	Richard P. McKenney	
 	 	Senior Vice President – Chief Financial Officer	
 
3

Exhibit Index

Exhibit
Number
	 	Description of Exhibit
	
99.1	 	First Quarter 2004, Second Quarter 2004, Third Quarter 2004 Selected Financial Information.	
 
Exhibit 99.1

 

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Table of Contents

 	  	Page
	
Letter to Investor/Analyst	  	2	
Basis of Presentation of Financial Information	  	3	
Use of Non-GAAP Measures	  	4	
Reconciliation of Net Earnings to Adjusted Pro Forma Net Operating Earnings	  	5	
Reconciliation of Historical Financial Information to Adjusted Pro Forma Financial Information - QTD	  	6	
Reconciliation of Historical Financial Information to Adjusted Pro Forma Financial Information - YTD	  	7	
Notes to Adjusted Pro Forma Financial Information	  	8	
		
Adjusted Pro Forma Highlights	  	 	
Adjusted Pro Forma Financial Highlights - QTD	  	10	
Adjusted Pro Forma Financial Highlights - YTD	  	11	
Adjusted Pro Forma Earnings from Continuing Operations - QTD	  	12	
Adjusted Pro Forma Earnings from Continuing Operations - YTD	  	13	
		
Adjusted Pro Forma Information	  	 	
Adjusted Pro Forma Statement of Earnings by Segment - QTD	  	15	
Adjusted Pro Forma Statement of Earnings by Segment - YTD	  	16	
Adjusted Pro Forma Segment Net Earnings QTD - Retirement Income and Investments	  	17	
Adjusted Pro Forma Segment Net Earnings YTD - Retirement Income and Investments	  	18	
Adjusted Pro Forma Net Earnings by Quarter	  	19	
Adjusted Pro Forma Segment Net Earnings by Quarter – Retirement Income and Investments	  	20	
		
Corporate Information	  	21	
 
1

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Dear Investor/Analyst,
 
In advance of our Strategic Update meeting on December 15, 2004, we have prepared certain adjusted pro forma financial information, contained in this report, that reflects an upcoming change in the basis for the presentation of our pro forma financial results. We believe it is useful to investors and analysts for us to communicate this change, along with the resulting adjustments to our previously published pro forma financial information, in advance of year-end reporting.
 
Adjustments for pro forma financial information typically are required, consistent with SEC regulations, to be prepared assuming the relevant transactions were consummated at the beginning of the most recent fiscal year presented . In our case, this means that the pro forma financial information previously provided for the first three quarters of 2004 assumed that all transactions effected in connection with our IPO had an effective date of January 1, 2003, the beginning of the most recent fiscal year currently presented. Beginning with the publication of our financial information for fiscal year 2004, consistent with SEC regulations, this assumed effective date will change to January 1, 2004.
 
The change in the assumed effective date will impact the pro forma adjustments related to the reinsurance transactions that we entered into during the second quarter of 2004. The after-tax impact of this change is a $6 million reduction of our pro forma net earnings for the nine months ended September 30, 2004. This impact is reflected entirely in the Retirement Income and Investments segment, where most of the reinsured business was written. The change in the assumed effective date does not have any impact on the pro forma adjustments relating to the other transactions effected in connection with our IPO, including adjustments related to businesses that were not transferred to us and adjustments for changes in our capitalization.
 
This report provides our previously published pro forma financial information, as adjusted for the upcoming change in the assumed effective date. Please note that this report provides only adjusted pro forma financial information that differs from previously published pro forma financial information as a result of the upcoming change.
 
Please call if you have any additional questions.
 
Regards,
 
Jean Peters
Senior Vice President
Investor Relations and Corporate Communications
804 662-2693
 
Alicia Charity
Vice President
Investor Relations
804 662-2248
 
2

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Basis of Presentation of Financial Information
 
As part of a corporate reorganization effected in connection with the company’s IPO, the company acquired substantially all of the assets and liabilities of GE Financial Assurance Holdings, Inc. (GEFAHI), an indirect subsidiary of GE. The company also acquired certain other insurance businesses that were owned by other GE subsidiaries but managed by members of the company’s management team. In consideration for the assets that the company acquired and the liabilities that the company assumed, the company issued various equity and debt securities to GEFAHI.
 
The company has prepared its historical financial information as if the company had been in existence throughout all relevant periods. The historical financial information through the date of the corporate reorganization (May 24, 2004) includes all businesses that were owned by GEFAHI, including those that were not transferred to the company, as well as the other insurance businesses that the company acquired from other GE subsidiaries in connection with the corporate reorganization. As a result, the company’s historical financial information for periods prior to the corporate reorganization is not comparable to historical financial information for periods ending after that date.
 
Prior to the completion of the IPO, the company entered into several significant reinsurance transactions with Union Fidelity Life Insurance Company (UFLIC), an indirect subsidiary of GE. As part of these transactions, the company ceded to UFLIC, effective as of January 1, 2004, policy obligations under all of its in-force structured settlement contracts, which had reserves of $12.0 billion, and substantially all of its in-force variable annuity contracts, which had general account reserves of $2.8 billion and separate account reserves of $7.9 billion, each as of December 31, 2003. These contracts represent substantially all of the company’s contracts that were in force as of December 31, 2003 for these products. In addition, effective as of January 1, 2004, the company ceded to UFLIC policy obligations under a block of long-term care insurance policies, which had reserves of $1.5 billion as of December 31, 2003. As part of the reinsurance transactions, UFLIC ceded to the company in-force blocks of Medicare supplement insurance, which had reserves of $19 million.
 
The unaudited pro forma financial information contained in this report reflects the company’s historical combined financial information as adjusted to give effect to the transactions described below and certain other transactions as if each had occurred as of January 1, 2003:
 
•	the removal of certain businesses of GEFAHI that were not transferred to the company in connection with the corporate reorganization;	
 
•	the reinsurance transactions with UFLIC;	
 
•	the issuance of equity and debt securities to GEFAHI in exchange for the assets that the company acquired and the liabilities that the company assumed in connection with the corporate reorganization; and	
 
•	the issuance and sale of $1.9 billion of senior notes and $500 million of commercial paper and the application of the proceeds therefrom.	
 
The unaudited adjusted pro forma financial information contained in this report reflects the company’s pro forma financial information, as further adjusted to give effect to the same transactions described above as if each had occurred as of January 1, 2004.
 
The unaudited pro forma financial information is based upon available information and assumptions that the company believes are reasonable. The unaudited pro forma financial information is for illustrative and informational purposes only and is not intended to represent or be indicative of what the company’s financial condition or results of operations would have been had the transactions described above occurred on the dates indicated, nor what they may be in the future.
 
3

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Use of Non-GAAP Measures
 
This report includes the non-GAAP financial measure entitled “net operating earnings.” The company defines net operating earnings as pro forma net earnings from continuing operations, excluding pro forma after-tax net realized investment gains and losses (which can fluctuate significantly from period to period), changes in accounting principles and non-recurring, infrequent or unusual items. There were no non-recurring, infrequent or unusual items excluded from pro forma net operating earnings for the periods presented in this financial supplement other than a $22 million tax charge during the three months ended June 30, 2004 arising from the company’s separation from GE on May 28, 2004.
 
Management believes that analysis of net operating earnings enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. However, net operating earnings should not be viewed as a substitute for GAAP net earnings. In addition, the company’s definition of net operating earnings may differ from the definitions used by other companies. The table on page 5 of this report provides a reconciliation of adjusted pro forma net operating earnings (as defined below) to historical and pro forma net earnings.
 
All net realized investment gains (losses) are reflected in the Corporate and Other Segment and are not reflected in the results of any of the company’s other segments. As a result, the segment results contained in this financial supplement are presented on a net operating earnings basis, which is the same as net earnings under GAAP for all segments, except for the Corporate and Other Segment. For a reconciliation of pro forma net operating earnings for the Corporate and Other Segment to pro forma net earnings presented in accordance with GAAP, see the tables on pages 10 and 11 in this report. The term “net operating loss” as used in this report is also a non-GAAP financial measure and has an analogous meaning to “net operating earnings.”
 
Beginning with its earnings release for the year ended December 31, 2004, the company will present pro forma financial information for periods in 2004 that assumes the transactions described above had occurred on January 1, 2004. The company believes it is useful to its investors and analysts for it to communicate this change now, along with the resulting adjustments to previously published pro forma financial information, to enable them to become familiar with the change in the assumed effective date in advance of the year-end reporting season. As a result, this report includes the non-GAAP financial measure entitled “adjusted pro forma.”
 
The company defines adjusted pro forma to mean pro forma financial information for the first three quarters of 2004 (previously published and prepared in accordance with applicable regulations of the Securities and Exchange Commission, assuming that the transactions described above under “Basis of Historical and Pro Forma Financial Information” had occurred on January 1, 2003), as further adjusted to give effect to such transactions as if they had occurred on January 1, 2004. The tables on pages 5-7 provide reconciliations of adjusted pro forma financial information to historical financial information.
 
4

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Reconciliation of Net Earnings to Adjusted Pro Forma Net Operating Earnings
(Amounts in millions, except per share data)

 	  	Three months ended
	 	 	Six months ended
	 	 	Nine months ended
	 	
 	  	March 31,
2004
	 	 	June 30,
2004
	 	 	September 30,
2004
	 	 	June 30,
2004
	 	 	September 30,
2004

Net earnings	  	$	272	 	 	$	268	 	 	$	271	 	 	$	540	 	 	$	811	 	
Net earnings from discontinued operations, net of taxes	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
(Gain) loss on sale of discontinued operations, net of taxes	  	 	(7	)	 	 	—  	 	 	 	—  	 	 	 	(7	)	 	 	(7	)	
Cumulative effect of accounting change, net of taxes	  	 	(5	)	 	 	—  	 	 	 	—  	 	 	 	(5	)	 	 	(5	)	
 	  				 				 				 				 				
Net earnings from continuing operations	  	 	260	 	 	 	268	 	 	 	271	 	 	 	528	 	 	 	799	 	
 	  				 				 				 				 				
Excluded assets and liabilities (a)	  	 	1	 	 	 	6	 	 	 	—  	 	 	 	7	 	 	 	7	 	
Reinsurance transactions (b)	  	 	4	 	 	 	(4	)	 	 	2	 	 	 	—  	 	 	 	2	 	
Capital structure and other (c)	  	 	(9	)	 	 	(9	)	 	 	—  	 	 	 	(18	)	 	 	(18	)	
 	  				 				 				 				 				
Pro forma net earnings from continuing operations	  	 	256	 	 	 	261	 	 	 	273	 	 	 	517	 	 	 	790	 	
 	  				 				 				 				 				
Adjustments for change in assumed effective date (d)	  	 	(2	)	 	 	(2	)	 	 	(2	)	 	 	(4	)	 	 	(6	)	
 	  				 				 				 				 				
Adjusted pro forma net earnings from continuing operations	  	 	254	 	 	 	259	 	 	 	271	 	 	 	513	 	 	 	784	 	
 	  				 				 				 				 				
Pro forma net realized (gains) losses on investments, net of taxes	  	 	(10	)	 	 	(4	)	 	 	(2	)	 	 	(14	)	 	 	(16	)	
One-time tax charge relating to initial public offering, net of taxes	  	 	—  	 	 	 	22	 	 	 	—  	 	 	 	22	 	 	 	22	 	
 	  				 				 				 				 				
Adjusted pro forma net operating earnings	  	$	244	 	 	$	277	 	 	$	269	 	 	$	521	 	 	$	790	 	
 	  				 				 				 				 				
Net earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.56	 	 	$	0.55	 	 	$	0.55	 	 	$	1.10	 	 	$	1.66	 	
 	  				 				 				 				 				
Diluted	  	$	0.56	 	 	$	0.55	 	 	$	0.55	 	 	$	1.10	 	 	$	1.65	 	
 	  				 				 				 				 				
Net earnings from continuing operations per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.53	 	 	$	0.55	 	 	$	0.55	 	 	$	1.08	 	 	$	1.63	 	
 	  				 				 				 				 				
Diluted	  	$	0.53	 	 	$	0.55	 	 	$	0.55	 	 	$	1.08	 	 	$	1.63	 	
 	  				 				 				 				 				
Pro forma net earnings from continuing operations per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.52	 	 	$	0.53	 	 	$	0.56	 	 	$	1.06	 	 	$	1.61	 	
 	  				 				 				 				 				
Diluted	  	$	0.52	 	 	$	0.53	 	 	$	0.56	 	 	$	1.05	 	 	$	1.61	 	
 	  				 				 				 				 				
Adjusted pro forma net earnings from continuing operations	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.52	 	 	$	0.53	 	 	$	0.55	 	 	$	1.05	 	 	$	1.60	 	
 	  				 				 				 				 				
Diluted	  	$	0.52	 	 	$	0.53	 	 	$	0.55	 	 	$	1.05	 	 	$	1.60	 	
 	  				 				 				 				 				
Adjusted pro forma net operating earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.50	 	 	$	0.57	 	 	$	0.55	 	 	$	1.06	 	 	$	1.61	 	
 	  				 				 				 				 				
Diluted	  	$	0.50	 	 	$	0.57	 	 	$	0.55	 	 	$	1.06	 	 	$	1.61	 	
 	  				 				 				 				 				
Shares outstanding	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	 	489.5	 	 	 	489.5	 	 	 	489.6	 	 	 	489.5	 	 	 	489.5	 	
Diluted	  	 	489.5	 	 	 	490.1	 	 	 	490.4	 	 	 	490.1	 	 	 	490.4	 	
 
Note: For a discussion of notes (a), (b), (c), and (d) to these tables see Notes To Adjusted Pro Forma Financial Information on page 8.
 
5

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Reconciliation of Historical Financial Information to Adjusted Pro Forma Financial Information - QTD
(Dollar amounts in millions)

 	  	Three Months Ended March 31, 2004
	
 	  	Historical
	  	Pro forma
adjustments -
excluded assets
and liabilities
(a)
	 	 	Pro forma
adjustments -
reinsurance
transactions
(b)
	 	 	Pro forma
adjustments -
capital structure
and other
(c)
	 	 	Pro forma
	  	Adjustments for
change in
assumed
effective date
(d)
	 	 	Adjusted pro
forma
	
 	  	(Unaudited)	
REVENUES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Premiums	  	$	1,722	  	$	(54	)	 	$	(49	)	 	$	—  	 	 	$	1,619	  	$	—  	 	 	$	1,619	
Net investment income	  	 	1,037	  	 	(18	)	 	 	(247	)	 	 	—  	 	 	 	772	  	 	(19	)	 	 	753	
Net realized investment gains (losses)	  	 	16	  	 	(1	)	 	 	—  	 	 	 	—  	 	 	 	15	  	 	—  	 	 	 	15	
Policy fees and other income	  	 	249	  	 	(67	)	 	 	(30	)	 	 	—  	 	 	 	152	  	 	(3	)	 	 	149	
 	  			  				 				 				 			  				 			
Total revenues	  	 	3,024	  	 	(140	)	 	 	(326	)	 	 	—  	 	 	 	2,558	  	 	(22	)	 	 	2,536	
 	  			  				 				 				 			  				 			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,351	  	 	(49	)	 	 	(213	)	 	 	—  	 	 	 	1,089	  	 	(9	)	 	 	1,080	
Interest credited	  	 	396	  	 	—  	 	 	 	(66	)	 	 	—  	 	 	 	330	  	 	(7	)	 	 	323	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	508	  	 	(73	)	 	 	(21	)	 	 	—  	 	 	 	414	  	 	(1	)	 	 	413	
Amortization of deferred acquisition costs and intangibles	  	 	345	  	 	(29	)	 	 	(30	)	 	 	—  	 	 	 	286	  	 	(2	)	 	 	284	
Interest expense	  	 	47	  	 	—  	 	 	 	—  	 	 	 	14	 	 	 	61	  	 	—  	 	 	 	61	
 	  			  				 				 				 			  				 			
Total benefits and expenses	  	 	2,647	  	 	(151	)	 	 	(330	)	 	 	14	 	 	 	2,180	  	 	(19	)	 	 	2,161	
 	  			  				 				 				 			  				 			
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	377	  	 	11	 	 	 	4	 	 	 	(14	)	 	 	378	  	 	(3	)	 	 	375	
Provision for income taxes	  	 	117	  	 	10	 	 	 	—  	 	 	 	(5	)	 	 	122	  	 	(1	)	 	 	121	
 	  			  				 				 				 			  				 			
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	260	  	$	1	 	 	$	4	 	 	$	(9	)	 	$	256	  	$	(2	)	 	$	254	

 	  	 
Three Months Ended June 30, 2004
	
 	  	Historical
	  	Pro forma
adjustments -
excluded assets
and liabilities
(a)
	 	 	Pro forma
adjustments -
reinsurance
transactions
(b)
	 	 	Pro forma
adjustments -
capital structure
and other
(c)
	 	 	Pro forma
	  	Adjustments for
change in
assumed
effective date
(d)
	 	 	Adjusted pro
forma
	
 	  	(Unaudited)	
REVENUES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Premiums	  	$	1,708	  	$	(26	)	 	$	(42	)	 	$	 —  	 	 	$	1,640	  	$	 —  	 	 	$	1,640	
Net investment income	  	 	1,001	  	 	(10	)	 	 	(176	)	 	 	—  	 	 	 	815	  	 	(18	)	 	 	797	
Net realized investment gains (losses)	  	 	8	  	 	(2	)	 	 	—  	 	 	 	—  	 	 	 	6	  	 	—  	 	 	 	6	
Policy fees and other income	  	 	204	  	 	(36	)	 	 	(20	)	 	 	—  	 	 	 	148	  	 	(4	)	 	 	144	
 	  			  				 				 				 			  				 			
Total revenues	  	 	2,921	  	 	(74	)	 	 	(238	)	 	 	—  	 	 	 	2,609	  	 	(22	)	 	 	2,587	
 	  			  				 				 				 			  				 			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,290	  	 	(22	)	 	 	(168	)	 	 	—  	 	 	 	1,100	  	 	(3	)	 	 	1,097	
Interest credited	  	 	364	  	 	—  	 	 	 	(30	)	 	 	—  	 	 	 	334	  	 	(10	)	 	 	324	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	476	  	 	(44	)	 	 	(12	)	 	 	—  	 	 	 	420	  	 	(4	)	 	 	416	
Amortization of deferred acquisition costs and intangibles	  	 	305	  	 	(17	)	 	 	(21	)	 	 	—  	 	 	 	267	  	 	(3	)	 	 	264	
Interest expense	  	 	47	  	 	—  	 	 	 	—  	 	 	 	12	 	 	 	59	  	 	—  	 	 	 	59	
 	  			  				 				 				 			  				 			
Total benefits and expenses	  	 	2,482	  	 	(83	)	 	 	(231	)	 	 	12	 	 	 	2,180	  	 	(20	)	 	 	2,160	
 	  			  				 				 				 			  				 			
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	439	  	 	9	 	 	 	(7	)	 	 	(12	)	 	 	429	  	 	(2	)	 	 	427	
Provision for income taxes	  	 	171	  	 	3	 	 	 	(3	)	 	 	(3	)	 	 	168	  	 	—  	 	 	 	168	
 	  			  				 				 				 			  				 			
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	268	  	$	6	 	 	$	(4	)	 	$	(9	)	 	$	261	  	$	(2	)	 	$	259	

 	  	 
Three Months Ended September 30, 2004
	
 	  	Historical
	  	Pro forma
adjustments -
excluded assets
and liabilities
(a)
	 	 	Pro forma
adjustments -
reinsurance
transactions
(b)
	 	 	Pro forma
adjustments -
capital structure
and other
(c)
	 	 	Pro forma
	  	Adjustments for
change in
assumed
effective date
(d)
	 	 	Adjusted pro
forma
	
 	  	(Unaudited)	
REVENUES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Premiums	  	$	1,523	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	1,523	  	$	—  	 	 	$	1,523	
Net investment income	  	 	785	  	 	—  	 	 	 	21	 	 	 	—  	 	 	 	806	  	 	(21	)	 	 	785	
Net realized investment gains (losses)	  	 	3	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	3	  	 	—  	 	 	 	3	
Policy fees and other income	  	 	159	  	 	—  	 	 	 	2	 	 	 	—  	 	 	 	161	  	 	(2	)	 	 	159	
 	  			  				 				 				 			  				 			
Total revenues	  	 	2,470	  	 	—  	 	 	 	23	 	 	 	—  	 	 	 	2,493	  	 	(23	)	 	 	2,470	
 	  			  				 				 				 			  				 			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,034	  	 	—  	 	 	 	7	 	 	 	—  	 	 	 	1,041	  	 	(7	)	 	 	1,034	
Interest credited	  	 	328	  	 	—  	 	 	 	8	 	 	 	—  	 	 	 	336	  	 	(8	)	 	 	328	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	399	  	 	—  	 	 	 	2	 	 	 	—  	 	 	 	401	  	 	(2	)	 	 	399	
Amortization of deferred acquisition costs and intangibles	  	 	242	  	 	—  	 	 	 	2	 	 	 	—  	 	 	 	244	  	 	(2	)	 	 	242	
Interest expense	  	 	60	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	60	  	 	—  	 	 	 	60	
 	  			  				 				 				 			  				 			
Total benefits and expenses	  	 	2,063	  	 	—  	 	 	 	19	 	 	 	—  	 	 	 	2,082	  	 	(19	)	 	 	2,063	
 	  			  				 				 				 			  				 			
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	407	  	 	—  	 	 	 	4	 	 	 	—  	 	 	 	411	  	 	(4	)	 	 	407	
Provision for income taxes	  	 	136	  	 	—  	 	 	 	2	 	 	 	—  	 	 	 	138	  	 	(2	)	 	 	136	
 	  			  				 				 				 			  				 			
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	271	  	$	—  	 	 	$	2	 	 	$	—  	 	 	$	273	  	$	(2	)	 	$	271	

Note: For a discussion of notes (a), (b), (c), and (d) to these tables see Notes To Adjusted Pro Forma Financial Information on page 8.
 
6

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Reconciliation of Historical Financial Information to Adjusted Pro Forma Financial Information - YTD
(Dollar amounts in millions)

 	  	Three Months Ended March 31, 2004
	
 	  	Historical
	  	Pro forma
adjustments -
excluded assets
and liabilities
(a)
	 	 	Pro forma
adjustments -
reinsurance
transactions
(b)
	 	 	Pro forma
adjustments -
capital structure
and other
(c)
	 	 	Pro forma
	  	Adjustments for
change in
assumed
effective date
(d)
	 	 	Adjusted
pro forma
	
 	  	(Unaudited)	
REVENUES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Premiums	  	$	1,722	  	$	(54	)	 	$	(49	)	 	$	—  	 	 	$	1,619	  	$	—  	 	 	$	1,619	
Net investment income	  	 	1,037	  	 	(18	)	 	 	(247	)	 	 	—  	 	 	 	772	  	 	(19	)	 	 	753	
Net realized investment gains (losses)	  	 	16	  	 	(1	)	 	 	—  	 	 	 	—  	 	 	 	15	  	 	—  	 	 	 	15	
Policy fees and other income	  	 	249	  	 	(67	)	 	 	(30	)	 	 	—  	 	 	 	152	  	 	(3	)	 	 	149	
 	  			  				 				 				 			  				 			
Total revenues	  	 	3,024	  	 	(140	)	 	 	(326	)	 	 	—  	 	 	 	2,558	  	 	(22	)	 	 	2,536	
 	  			  				 				 				 			  				 			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,351	  	 	(49	)	 	 	(213	)	 	 	—  	 	 	 	1,089	  	 	(9	)	 	 	1,080	
Interest credited	  	 	396	  	 	—  	 	 	 	(66	)	 	 	—  	 	 	 	330	  	 	(7	)	 	 	323	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	508	  	 	(73	)	 	 	(21	)	 	 	—  	 	 	 	414	  	 	(1	)	 	 	413	
Amortization of deferred acquisition costs and intangibles	  	 	345	  	 	(29	)	 	 	(30	)	 	 	—  	 	 	 	286	  	 	(2	)	 	 	284	
Interest expense	  	 	47	  	 	—  	 	 	 	—  	 	 	 	14	 	 	 	61	  	 	—  	 	 	 	61	
 	  			  				 				 				 			  				 			
Total benefits and expenses	  	 	2,647	  	 	(151	)	 	 	(330	)	 	 	14	 	 	 	2,180	  	 	(19	)	 	 	2,161	
 	  			  				 				 				 			  				 			
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	377	  	 	11	 	 	 	4	 	 	 	(14	)	 	 	378	  	 	(3	)	 	 	375	
Provision for income taxes	  	 	117	  	 	10	 	 	 	—  	 	 	 	(5	)	 	 	122	  	 	(1	)	 	 	121	
 	  			  				 				 				 			  				 			
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	260	  	$	1	 	 	$	4	 	 	$	(9	)	 	$	256	  	$	(2	)	 	$	254	

 	  	 
Six Months Ended June 30, 2004
	
 	  	Historical
	  	Pro forma
adjustments -
excluded assets
and liabilities
(a)
	 	 	Pro forma
adjustments -
reinsurance
transactions
(b)
	 	 	Pro forma
adjustments -
capital structure
and other
(c)
	 	 	Pro forma
	  	Adjustments for
change in
assumed
effective date
(d)
	 	 	Adjusted
pro forma
	
 	  	(Unaudited)	
REVENUES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Premiums	  	$	3,430	  	$	(80	)	 	$	(91	)	 	$	—  	 	 	$	3,259	  	$	—  	 	 	$	3,259	
Net investment income	  	 	2,038	  	 	(28	)	 	 	(423	)	 	 	—  	 	 	 	1,587	  	 	(37	)	 	 	1,550	
Net realized investment gains (losses)	  	 	24	  	 	(3	)	 	 	—  	 	 	 	—  	 	 	 	21	  	 	—  	 	 	 	21	
Policy fees and other income	  	 	453	  	 	(103	)	 	 	(50	)	 	 	—  	 	 	 	300	  	 	(7	)	 	 	293	
 	  			  				 				 				 			  				 			
Total revenues	  	 	5,945	  	 	(214	)	 	 	(564	)	 	 	—  	 	 	 	5,167	  	 	(44	)	 	 	5,123	
 	  			  				 				 				 			  				 			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	2,641	  	 	(71	)	 	 	(381	)	 	 	—  	 	 	 	2,189	  	 	(12	)	 	 	2,177	
Interest credited	  	 	760	  	 	—  	 	 	 	(96	)	 	 	—  	 	 	 	664	  	 	(17	)	 	 	647	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	984	  	 	(117	)	 	 	(33	)	 	 	—  	 	 	 	834	  	 	(5	)	 	 	829	
Amortization of deferred acquisition costs and intangibles	  	 	650	  	 	(46	)	 	 	(51	)	 	 	—  	 	 	 	553	  	 	(5	)	 	 	548	
Interest expense	  	 	94	  	 	—  	 	 	 	—  	 	 	 	26	 	 	 	120	  	 	—  	 	 	 	120	
 	  			  				 				 				 			  				 			
Total benefits and expenses	  	 	5,129	  	 	(234	)	 	 	(561	)	 	 	26	 	 	 	4,360	  	 	(39	)	 	 	4,321	
 	  			  				 				 				 			  				 			
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	816	  	 	20	 	 	 	(3	)	 	 	(26	)	 	 	807	  	 	(5	)	 	 	802	
Provision for income taxes	  	 	288	  	 	13	 	 	 	(3	)	 	 	(8	)	 	 	290	  	 	(1	)	 	 	289	
 	  			  				 				 				 			  				 			
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	528	  	$	7	 	 	$	—  	 	 	$	(18	)	 	$	517	  	$	(4	)	 	$	513	

Nine Months Ended September 30, 2004
	
 	  	Historical
	  	Pro forma
adjustments -
excluded assets
and liabilities
(a)
	 	 	Pro forma
adjustments -
reinsurance
transactions
(b)
	 	 	Pro forma
adjustments -
capital structure
and other
(c)
	 	 	Pro forma
	  	Adjustments for
change in
assumed
effective date
(d)
	 	 	Adjusted
pro forma
	
 	  	(Unaudited)	
REVENUES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Premiums	  	$	4,953	  	$	(80	)	 	$	(91	)	 	$	 —  	 	 	$	4,782	  	$	 —  	 	 	$	4,782	
Net investment income	  	 	2,823	  	 	(28	)	 	 	(402	)	 	 	—  	 	 	 	2,393	  	 	(58	)	 	 	2,335	
Net realized investment gains (losses)	  	 	27	  	 	(3	)	 	 	—  	 	 	 	—  	 	 	 	24	  	 	—  	 	 	 	24	
Policy fees and other income	  	 	612	  	 	(103	)	 	 	(48	)	 	 	—  	 	 	 	461	  	 	(9	)	 	 	452	
 	  			  				 				 				 			  				 			
Total revenues	  	 	8,415	  	 	(214	)	 	 	(541	)	 	 	—  	 	 	 	7,660	  	 	(67	)	 	 	7,593	
 	  			  				 				 				 			  				 			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	3,675	  	 	(71	)	 	 	(374	)	 	 	—  	 	 	 	3,230	  	 	(19	)	 	 	3,211	
Interest credited	  	 	1,088	  	 	—  	 	 	 	(88	)	 	 	—  	 	 	 	1,000	  	 	(25	)	 	 	975	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	1,383	  	 	(117	)	 	 	(31	)	 	 	—  	 	 	 	1,235	  	 	(7	)	 	 	1,228	
Amortization of deferred acquisition costs and intangibles	  	 	892	  	 	(46	)	 	 	(49	)	 	 	—  	 	 	 	797	  	 	(7	)	 	 	790	
Interest expense	  	 	154	  	 	—  	 	 	 	—  	 	 	 	26	 	 	 	180	  	 	—  	 	 	 	180	
 	  			  				 				 				 			  				 			
Total benefits and expenses	  	 	7,192	  	 	(234	)	 	 	(542	)	 	 	26	 	 	 	6,442	  	 	(58	)	 	 	6,384	
 	  			  				 				 				 			  				 			
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	1,223	  	 	20	 	 	 	1	 	 	 	(26	)	 	 	1,218	  	 	(9	)	 	 	1,209	
Provision for income taxes	  	 	424	  	 	13	 	 	 	(1	)	 	 	(8	)	 	 	428	  	 	(3	)	 	 	425	
 	  			  				 				 				 			  				 			
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	799	  	$	7	 	 	$	2	 	 	$	(18	)	 	$	790	  	$	(6	)	 	$	784	

Note: For a discussion of notes (a), (b), (c), and (d) to these tables see Notes To Adjusted Pro Forma Financial Information on page 8.
 
7

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Notes to Adjusted Pro Forma Financial Information
 
(a)	Reflects adjustments to exclude amounts included in the company’s historical combined earnings relating to (1) certain businesses (formerly reported in the company’s Affinity Segment) and certain investment partnerships, which in each case were not transferred to the company, and (2) net realized investment (gains) losses and related tax benefit arising from sales of Affinity segment assets that were reflected in the company’s Corporate and Other Segment.	
 
(b)	Reflects adjustments to record the effects of the reinsurance transactions the company entered into with, and the related contribution the company made to, UFLIC, an indirect subsidiary of GE. As part of these transactions, the company ceded to UFLIC all of its in-force structured settlement contracts, substantially all of its in-force variable annuity contracts, and a block of long-term care insurance policies that it reinsured from Travelers in 2000, and it assumed from UFLIC a block of Medicare supplement insurance, all effective as of January 1, 2004. The unaudited pro forma earnings information gives effect to the reinsurance transactions as if each occurred as of January 1, 2003 and excludes the effects of all ceded reinsured contracts that were issued before January 1, 2003. The company has continued to sell variable annuities and structured settlements after completion of the reinsurance transactions and is retaining that business for its own account, subject to third party reinsurance in the ordinary course of business.	
 
As a result, the company’s unaudited pro forma combined statement of earnings reflects premiums and fees from these products issued after January 1, 2003, even though variable annuities and structured settlements issued during 2003 are included in the blocks of policies reinsured to UFLIC. The company’s pro forma combined statements of earnings exclude the impact of the entire block of long-term care insurance policies that the company ceded to UFLIC as the company did not issue any new policies for this block in 2003, and the company will not issue any in the future.
 
Under the reinsurance transactions, the company receives an expense allowance to reimburse it for costs it incurs to service the reinsured blocks. Actual costs and expense allowance amounts will be determined by expense studies to be conducted periodically. The pro forma adjustments have been prepared assuming that actual costs incurred during the pro forma periods, as determined under the company’s historical cost structure and allocation methods, were reimbursed by an expense allowance.
 
In addition to investment assets transferred to UFLIC in exchange for a reinsurance recoverable asset from UFLIC, concurrently, the company contributed $1.836 billion of capital to UFLIC which primarily represented the excess statutory capital in the company’s insurance subsidiaries after giving effect to the reinsurance transactions. As a significant portion of the assets transferred and contributed were not owned for the entire period, the pro forma earnings adjustments to reduce net investment income and net realized investment gains were based upon a proportional allocation of investment income from the investment assets historically identified (1) as supporting the blocks of business reinsured for the reinsurance, and (2) as representing surplus of subsidiaries providing assets to be contributed to UFLIC for the contribution.
 
(c)	Reflects adjustments for changes in the company’s capitalization to exclude the impact of commercial paper, short-term borrowings from GE Capital and derivatives that were not transferred to the company in connection with the corporate reorganization and to include the impact of the issuance of $600 million of the company’s 6.00% Equity Units and $100 million of the company’s 5.25% mandatorily redeemable Series A Cumulative Preferred Stock, both of which were completed on May 28, 2004, the issuance of 3, 5, 10 and 30 year notes totaling $1.9 billion which was completed June 15, 2004, and the issuance of $500 million of commercial paper which was completed June 14, 2004, as well as interest expense related to the accretion of the company’s obligation to GE under the Tax Matters Agreement and the tax impacts resulting from these changes in the company’s capitalization.	
 
(d)	Reflects adjustments to record the effects of the reinsurance transactions described in footnote (b) as if each occurred as of January 1, 2004 (rather than January 1, 2003) and excludes the effects of all ceded reinsured contracts that were issued after January 1, 2003 but before January 1, 2004. All these adjustments relate to the company’s Retirement Income and Investments segment because none of the company’s other segments include ceded reinsured contracts that were issued after January 1, 2003. In the Retirement Income and Investments segment, such contracts include variable annuities and structured settlements.	
 
8

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 
ADJUSTED PRO FORMA HIGHLIGHTS
 
9

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Financial Highlights - QTD
(Amounts in millions, except per share data)

 	  	Three months ended
	 	
Adjusted pro forma earnings by segment
	  	March 31,
2004
	 	 	June 30,
2004
	 	 	September 30,
2004
	 	
Earnings (loss) from continuing operations before income taxes and accounting change	  	 	 	 	 	 	 	 	 	 	 	 	
Protection	  	$	192	 	 	$	206	 	 	$	216	 	
Retirement Income and Investments	  	 	46	 	 	 	68	 	 	 	62	 	
Mortgage Insurance	  	 	148	 	 	 	163	 	 	 	150	 	
Corporate and Other	  	 	(11	)	 	 	(10	)	 	 	(21	)	
 	  				 				 				
Total	  	$	375	 	 	$	427	 	 	$	407	 	
 	  				 				 				
Segment net earnings (loss)	  	 	 	 	 	 	 	 	 	 	 	 	
Protection	  	$	123	 	 	$	129	 	 	$	135	 	
Retirement Income and Investments	  	 	30	 	 	 	43	 	 	 	40	 	
Mortgage Insurance	  	 	103	 	 	 	114	 	 	 	102	 	
Corporate and Other	  	 	(2	)	 	 	(27	)	 	 	(6	)	
 	  				 				 				
Total	  	$	254	 	 	$	259	 	 	$	271	 	
 	  				 				 				
Net operating earnings (loss)	  	 	 	 	 	 	 	 	 	 	 	 	
Protection	  	$	123	 	 	$	129	 	 	$	135	 	
Retirement Income and Investments	  	 	30	 	 	 	43	 	 	 	40	 	
Mortgage Insurance	  	 	103	 	 	 	114	 	 	 	102	 	
Corporate and Other (see reconciliation below)	  	 	(12	)	 	 	(9	)	 	 	(8	)	
 	  				 				 				
Total	  	$	244	 	 	$	277	 	 	$	269	 	

Note: Pro forma segment net earnings for the Protection, Mortgage Insurance and Corporate and Other segments are not affected by the upcoming change in the assumed effective date of the pro forma adjustments. As a result, pro forma segment net earnings for these segments are the same as adjusted pro forma segment net earnings. In the Retirement Income and Investments segment, the upcoming change in the assumed effective date results in the adjustments described in note (d) on page 8 and shown on pages 5, 6 and 7 under the heading “Adjustments for change in assumed effective date.”	     	
		
  	  	As of or for the three months ended
	 	
Adjusted pro forma earnings per share
	  	March 31,
2004
	 	 	June 30,
2004
	 	 	September 30,
2004
	 	
Basic EPS	  	 	 	 	 	 	 	 	 	 	 	 	
Net earnings from continuing operations per share	  	$	0.52	 	 	$	0.53	 	 	$	0.55	 	
Net operating earnings per share	  	$	0.50	 	 	$	0.57	 	 	$	0.55	 	
				
Diluted EPS	  	 	 	 	 	 	 	 	 	 	 	 	
Net earnings from continuing operations per share	  	$	0.52	 	 	$	0.53	 	 	$	0.55	 	
Net operating earnings per share	  	$	0.50	 	 	$	0.57	 	 	$	0.55	 	
				
Shares outstanding (millions)	  	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	 	489.5	 	 	 	489.5	 	 	 	489.6	 	
Diluted	  	 	489.5	 	 	 	490.1	 	 	 	490.4	 	
		
 	  	Three months ended
	 	
Reconciliation of Corporate and Other segment net loss
to pro forma net operating loss
	  	March 31,
2004
	 	 	June 30,
2004
	 	 	September 30,
2004
	 	
Segment net loss	  	$	4	 	 	$	(10	)	 	$	(6	)	
Excluded assets and liabilities (a)	  	 	1	 	 	 	(6	)	 	 	—  	 	
Reinsurance transactions (b)	  	 	2	 	 	 	(2	)	 	 	—  	 	
Capital structure and other (c)	  	 	(9	)	 	 	(9	)	 	 	—  	 	
 	  				 				 				
Pro forma net loss from continuing operations	  	 	(2	)	 	 	(27	)	 	 	(6	)	
 	  				 				 				
Net realized (gains) losses on investments, net of taxes	  	 	(10	)	 	 	(4	)	 	 	(2	)	
One-time tax charge relating to initial public offering	  	 	—  	 	 	 	22	 	 	 	—  	 	
 	  				 				 				
Pro forma net operating loss	  	$	(12	)	 	$	(9	)	 	$	(8	)	

Note: For a discussion of notes (a), (b), (c), and (d) to these tables see Notes To Adjusted Pro Forma Financial Information on page 8.
 
10

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Financial Highlights - YTD
(Amounts in millions, except per share data)

Adjusted pro forma earnings by segment
	  	Three months ended
March 31,
2004
	 	 	Six months ended
June 30,
2004
	 	 	Nine months ended
September 30,
2004
	 	
Earnings (loss) from continuing operations before income taxes and accounting change	  	 	 	 	 	 	 	 	 	 	 	 	
Protection	  	$	192	 	 	$	398	 	 	$	614	 	
Retirement Income and Investments	  	 	46	 	 	 	114	 	 	 	176	 	
Mortgage Insurance	  	 	148	 	 	 	311	 	 	 	461	 	
Corporate and Other	  	 	(11	)	 	 	(21	)	 	 	(42	)	
 	  				 				 				
Total	  	$	375	 	 	$	802	 	 	$	1,209	 	
 	  				 				 				
Segment net earnings (loss)	  	 	 	 	 	 	 	 	 	 	 	 	
Protection	  	$	123	 	 	$	252	 	 	$	387	 	
Retirement Income and Investments	  	 	30	 	 	 	73	 	 	 	113	 	
Mortgage Insurance	  	 	103	 	 	 	217	 	 	 	319	 	
Corporate and Other	  	 	(2	)	 	 	(29	)	 	 	(35	)	
 	  				 				 				
Total	  	$	254	 	 	$	513	 	 	$	784	 	
 	  				 				 				
Net operating earnings (loss)	  	 	 	 	 	 	 	 	 	 	 	 	
Protection	  	$	123	 	 	$	252	 	 	$	387	 	
Retirement Income and Investments	  	 	30	 	 	 	73	 	 	 	113	 	
Mortgage Insurance	  	 	103	 	 	 	217	 	 	 	319	 	
Corporate and Other (see reconciliation below)	  	 	(12	)	 	 	(21	)	 	 	(29	)	
 	  				 				 				
Total	  	$	244	 	 	$	521	 	 	$	790	 	

Note: Pro forma segment net earnings for the Protection, Mortgage Insurance and Corporate and Other segments are not affected by the upcoming change in the assumed effective date of the pro forma adjustments. As a result, pro forma segment net earnings for these segments are the same as adjusted pro forma segment net earnings. In the Retirement Income and Investments segment, the upcoming change in the assumed effective date results in the adjustments described in note (d) on page 8 and shown on pages 5, 6 and 7 under the heading “Adjustments for change in assumed effective date.”

Adjusted pro forma earnings per share
	  	As of or for the
three months ended
March 31,
2004
	 	 	As of or for the
six months ended
June 30,
2004
	 	 	As of or for the
nine months ended
September 30,
2004
	 	
Basic EPS	  	 	 	 	 	 	 	 	 	 	 	 	
Net earnings from continuing operations per share	  	$	0.52	 	 	$	1.05	 	 	$	1.60	 	
Net operating earnings per share	  	$	0.50	 	 	$	1.06	 	 	$	1.61	 	
				
Diluted EPS	  	 	 	 	 	 	 	 	 	 	 	 	
Net earnings from continuing operations per share	  	$	0.52	 	 	$	1.05	 	 	$	1.60	 	
Net operating earnings per share	  	$	0.50	 	 	$	1.06	 	 	$	1.61	 	
				
Shares outstanding (millions)	  	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	 	489.5	 	 	 	489.5	 	 	 	489.5	 	
Diluted	  	 	489.5	 	 	 	490.1	 	 	 	490.4	 	
				
Reconciliation of Corporate and Other segment net loss
to pro forma net operating loss
	  	Three months ended
March 31,
2004
	 	 	Six months ended
June 30,
2004
	 	 	Nine months ended
September 30,
2004
	 	
Segment net loss	  	$	4	 	 	$	(6	)	 	$	(12	)	
Excluded assets and liabilities (a)	  	 	1	 	 	 	(5	)	 	 	(5	)	
Reinsurance transactions (b)	  	 	2	 	 	 	—  	 	 	 	—  	 	
Capital structure and other (c)	  	 	(9	)	 	 	(18	)	 	 	(18	)	
 	  				 				 				
Pro forma net loss from continuing operations	  	 	(2	)	 	 	(29	)	 	 	(35	)	
 	  				 				 				
Net realized (gains) losses on investments, net of taxes	  	 	(10	)	 	 	(14	)	 	 	(16	)	
One-time tax charge relating to initial public offering	  	 	—  	 	 	 	22	 	 	 	22	 	
 	  				 				 				
Pro forma net operating loss	  	$	(12	)	 	$	(21	)	 	$	(29	)	

Note: For a discussion of notes (a), (b), (c), and (d) to these tables see Notes To Adjusted Pro Forma Financial Information on page 8.
 
11

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Earnings From Continuing Operations - QTD
(Dollar amounts in millions)

 	  	Three months ended
	 	
 	  	March 31,
2004
	 	 	June 30,
2004
	 	 	September 30,
2004
	 	
REVENUES:	  	 	 	 	 	 	 	 	 	 	 	 	
Premiums	  	$	1,619	 	 	$	1,640	 	 	$	1,523	 	
Net investment income	  	 	753	 	 	 	797	 	 	 	785	 	
Net realized investment gains	  	 	15	 	 	 	6	 	 	 	3	 	
Policy fees and other income	  	 	149	 	 	 	144	 	 	 	159	 	
 	  				 				 				
Total revenues	  	 	2,536	 	 	 	2,587	 	 	 	2,470	 	
 	  				 				 				
BENEFITS AND EXPENSES:	  	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,080	 	 	 	1,097	 	 	 	1,034	 	
Interest credited	  	 	323	 	 	 	324	 	 	 	328	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	413	 	 	 	416	 	 	 	399	 	
Amortization of deferred acquisition costs and intangibles	  	 	284	 	 	 	264	 	 	 	242	 	
Interest expense	  	 	61	 	 	 	59	 	 	 	60	 	
 	  				 				 				
Total benefits and expenses	  	 	2,161	 	 	 	2,160	 	 	 	2,063	 	
 	  				 				 				
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	375	 	 	 	427	 	 	 	407	 	
Provision for income taxes	  	 	121	 	 	 	168	 	 	 	136	 	
Effective tax rate	  	 	32	%	 	 	39	%	 	 	33	%	
 	  				 				 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	254	 	 	$	259	 	 	$	271	 	

Note: Pro forma segment net earnings for the Protection, Mortgage Insurance and Corporate and Other segments are not affected by the upcoming change in the assumed effective date of the pro forma adjustments. As a result, pro forma segment net earnings for these segments are the same as adjusted pro forma segment net earnings. In the Retirement Income and Investments segment, the upcoming change in the assumed effective date results in the adjustments described in note (d) on page 8 and shown on pages 5, 6 and 7 under the heading “Adjustments for change in assumed effective date.”
 
12

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Earnings From Continuing Operations - YTD
(Dollar amounts in millions) 

 	  	Three months ended
March 31,
2004
	 	 	Six months ended
June 30,
2004
	 	 	Nine months ended
September 30,
2004
	 	
REVENUES:	  	 	 	 	 	 	 	 	 	 	 	 	
Premiums	  	$	1,619	 	 	$	3,259	 	 	$	4,782	 	
Net investment income	  	 	753	 	 	 	1,550	 	 	 	2,335	 	
Net realized investment gains	  	 	15	 	 	 	21	 	 	 	24	 	
Policy fees and other income	  	 	149	 	 	 	293	 	 	 	452	 	
 	  				 				 				
Total revenues	  	 	2,536	 	 	 	5,123	 	 	 	7,593	 	
 	  				 				 				
BENEFITS AND EXPENSES:	  	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,080	 	 	 	2,177	 	 	 	3,211	 	
Interest credited	  	 	323	 	 	 	647	 	 	 	975	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	413	 	 	 	829	 	 	 	1,228	 	
Amortization of deferred acquisition costs and intangibles	  	 	284	 	 	 	548	 	 	 	790	 	
Interest expense	  	 	61	 	 	 	120	 	 	 	180	 	
 	  				 				 				
Total benefits and expenses	  	 	2,161	 	 	 	4,321	 	 	 	6,384	 	
 	  				 				 				
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	375	 	 	 	802	 	 	 	1,209	 	
Provision for income taxes	  	 	121	 	 	 	289	 	 	 	425	 	
Effective tax rate	  	 	32	%	 	 	36	%	 	 	35	%	
 	  				 				 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	254	 	 	$	513	 	 	$	784	 	

Note: Pro forma segment net earnings for the Protection, Mortgage Insurance and Corporate and Other segments are not affected by the upcoming change in the assumed effective date of the pro forma adjustments. As a result, pro forma segment net earnings for these segments are the same as adjusted pro forma segment net earnings. In the Retirement Income and Investments segment, the upcoming change in the assumed effective date results in the adjustments described in note (d) on page 8 and shown on pages 5, 6 and 7 under the heading “Adjustments for change in assumed effective date.”
 
13

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 
ADJUSTED PRO FORMA INFORMATION
 
14

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Statement of Earnings by Segment - QTD
(Dollar amounts in millions)

Three months ended March 31, 2004 
	  	Protection
Segment
	  	RI&I
Segment
	  	Mortgage
Segment
	  	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Premiums	  	$	1,121	  	$	277	  	$	195	  	$	26	 	 	$	1,619	 	
Net investment income	  	 	281	  	 	377	  	 	60	  	 	35	 	 	 	753	 	
Net realized investment gains	  	 	—  	  	 	—  	  	 	—  	  	 	15	 	 	 	15	 	
Policy fees and other income	  	 	87	  	 	52	  	 	8	  	 	2	 	 	 	149	 	
 	  			  			  			  				 				
Total revenues	  	 	1,489	  	 	706	  	 	263	  	 	78	 	 	 	2,536	 	
 	  			  			  			  				 				
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	694	  	 	338	  	 	39	  	 	9	 	 	 	1,080	 	
Interest credited	  	 	90	  	 	233	  	 	—  	  	 	—  	 	 	 	323	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	269	  	 	61	  	 	64	  	 	19	 	 	 	413	 	
Amortization of deferred acquisition costs and intangibles	  	 	241	  	 	28	  	 	12	  	 	3	 	 	 	284	 	
Interest expense	  	 	3	  	 	—  	  	 	—  	  	 	58	 	 	 	61	 	
 	  			  			  			  				 				
Total benefits and expenses	  	 	1,297	  	 	660	  	 	115	  	 	89	 	 	 	2,161	 	
 	  			  			  			  				 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	192	  	 	46	  	 	148	  	 	(11	)	 	 	375	 	
 	  			  			  			  				 				
Provision for income taxes	  	 	69	  	 	16	  	 	45	  	 	(9	)	 	 	121	 	
 	  			  			  			  				 				
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	 	123	  	 	30	  	 	103	  	 	(2	)	 	 	254	 	
 	  			  			  			  				 				
Net realized investment gains on investments, net of tax	  	 	—  	  	 	—  	  	 	—  	  	 	(10	)	 	 	(10	)	
One-time tax charge relating to initial public offering	  	 	—  	  	 	—  	  	 	—  	  	 	—  	 	 	 	—  	 	
 	  			  			  			  				 				
NET OPERATING EARNINGS (LOSS)	  	$	123	  	$	30	  	$	103	  	$	(12	)	 	$	244	 	

Three months ended June 30, 2004 
	  	Protection
Segment
	  	RI&I
Segment
	  	Mortgage
Segment
	  	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Premiums	  	$	1,098	  	$	321	  	$	195	  	$	26	 	 	$	1,640	 	
Net investment income	  	 	288	  	 	395	  	 	61	  	 	53	 	 	 	797	 	
Net realized investment gains	  	 	—  	  	 	—  	  	 	—  	  	 	6	 	 	 	6	 	
Policy fees and other income	  	 	79	  	 	53	  	 	10	  	 	2	 	 	 	144	 	
 	  			  			  			  				 				
Total revenues	  	 	1,465	  	 	769	  	 	266	  	 	87	 	 	 	2,587	 	
 	  			  			  			  				 				
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	691	  	 	370	  	 	27	  	 	9	 	 	 	1,097	 	
Interest credited	  	 	90	  	 	234	  	 	—  	  	 	—  	 	 	 	324	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	262	  	 	61	  	 	65	  	 	28	 	 	 	416	 	
Amortization of deferred acquisition costs and intangibles	  	 	214	  	 	35	  	 	11	  	 	4	 	 	 	264	 	
Interest expense	  	 	2	  	 	1	  	 	—  	  	 	56	 	 	 	59	 	
 	  			  			  			  				 				
Total benefits and expenses	  	 	1,259	  	 	701	  	 	103	  	 	97	 	 	 	2,160	 	
 	  			  			  			  				 				
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	 	206	  	 	68	  	 	163	  	 	(10	)	 	 	427	 	
 	  			  			  			  				 				
Provision for income taxes	  	 	77	  	 	25	  	 	49	  	 	17	 	 	 	168	 	
 	  			  			  			  				 				
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	 	129	  	 	43	  	 	114	  	 	(27	)	 	 	259	 	
 	  			  			  			  				 				
Net realized investment gains on investments, net of tax	  	 	—  	  	 	—  	  	 	—  	  	 	(4	)	 	 	(4	)	
One-time tax charge relating to initial public offering	  	 	—  	  	 	—  	  	 	—  	  	 	22	 	 	 	22	 	
 	  			  			  			  				 				
NET OPERATING EARNINGS (LOSS)	  	$	129	  	$	43	  	$	114	  	$	(9	)	 	$	277	 	

Three months ended September 30, 2004 
	  	Protection
Segment
	  	RI&I
Segment
	  	Mortgage
Segment
	  	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Premiums	  	$	1,085	  	$	219	  	$	197	  	$	22	 	 	$	1,523	 	
Net investment income	  	 	298	  	 	393	  	 	65	  	 	29	 	 	 	785	 	
Net realized investment gains	  	 	—  	  	 	—  	  	 	—  	  	 	3	 	 	 	3	 	
Policy fees and other income	  	 	91	  	 	52	  	 	10	  	 	6	 	 	 	159	 	
 	  			  			  			  				 				
Total revenues	  	 	1,474	  	 	664	  	 	272	  	 	60	 	 	 	2,470	 	
 	  			  			  			  				 				
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	698	  	 	281	  	 	46	  	 	9	 	 	 	1,034	 	
Interest credited	  	 	91	  	 	237	  	 	—  	  	 	—  	 	 	 	328	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	267	  	 	59	  	 	64	  	 	9	 	 	 	399	 	
Amortization of deferred acquisition costs and intangibles	  	 	198	  	 	25	  	 	12	  	 	7	 	 	 	242	 	
Interest expense	  	 	4	  	 	—  	  	 	—  	  	 	56	 	 	 	60	 	
 	  			  			  			  				 				
Total benefits and expenses	  	 	1,258	  	 	602	  	 	122	  	 	81	 	 	 	2,063	 	
 	  			  			  			  				 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	216	  	 	62	  	 	150	  	 	(21	)	 	 	407	 	
 	  			  			  			  				 				
Provision for income taxes	  	 	81	  	 	22	  	 	48	  	 	(15	)	 	 	136	 	
 	  			  			  			  				 				
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	 	135	  	 	40	  	 	102	  	 	(6	)	 	 	271	 	
 	  			  			  			  				 				
Net realized investment gains on investments, net of tax	  	 	—  	  	 	—  	  	 	—  	  	 	(2	)	 	 	(2	)	
One-time tax charge relating to initial public offering	  	 	—  	  	 	—  	  	 	—  	  	 	—  	 	 	 	—  	 	
 	  			  			  			  				 				
NET OPERATING EARNINGS (LOSS)	  	$	135	  	$	40	  	$	102	  	$	(8	)	 	$	269	 	

15

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Statement of Earnings by Segment - YTD
(Dollar amounts in millions)

Three months ended March 31, 2004 
	  	Protection
Segment
	  	RI&I
Segment
	  	Mortgage
Segment
	  	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Premiums	  	$	1,121	  	$	277	  	$	195	  	$	26	 	 	$	1,619	 	
Net investment income	  	 	281	  	 	377	  	 	60	  	 	35	 	 	 	753	 	
Net realized investment gains	  	 	—  	  	 	—  	  	 	—  	  	 	15	 	 	 	15	 	
Policy fees and other income	  	 	87	  	 	52	  	 	8	  	 	2	 	 	 	149	 	
 	  			  			  			  				 				
Total revenues	  	 	1,489	  	 	706	  	 	263	  	 	78	 	 	 	2,536	 	
 	  			  			  			  				 				
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	694	  	 	338	  	 	39	  	 	9	 	 	 	1,080	 	
Interest credited	  	 	90	  	 	233	  	 	—  	  	 	—  	 	 	 	323	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	269	  	 	61	  	 	64	  	 	19	 	 	 	413	 	
Amortization of deferred acquisition costs and intangibles	  	 	241	  	 	28	  	 	12	  	 	3	 	 	 	284	 	
Interest expense	  	 	3	  	 	—  	  	 	—  	  	 	58	 	 	 	61	 	
 	  			  			  			  				 				
Total benefits and expenses	  	 	1,297	  	 	660	  	 	115	  	 	89	 	 	 	2,161	 	
 	  			  			  			  				 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	192	  	 	46	  	 	148	  	 	(11	)	 	 	375	 	
 	  			  			  			  				 				
Provision for income taxes	  	 	69	  	 	16	  	 	45	  	 	(9	)	 	 	121	 	
 	  			  			  			  				 				
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	 	123	  	 	30	  	 	103	  	 	(2	)	 	 	254	 	
 	  			  			  			  				 				
Net realized investment gains on investments, net of tax	  	 	—  	  	 	—  	  	 	—  	  	 	(10	)	 	 	(10	)	
One-time tax charge relating to initial public offering	  	 	—  	  	 	—  	  	 	—  	  	 	—  	 	 	 	—  	 	
 	  			  			  			  				 				
NET OPERATING EARNINGS (LOSS)	  	$	123	  	$	30	  	$	103	  	$	(12	)	 	$	244	 	

Six months ended June 30, 2004 
	  	Protection
Segment
	  	RI&I
Segment
	  	Mortgage
Segment
	  	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Premiums	  	$	2,219	  	$	598	  	$	390	  	$	52	 	 	$	3,259	 	
Net investment income	  	 	569	  	 	772	  	 	121	  	 	88	 	 	 	1,550	 	
Net realized investment gains	  	 	—  	  	 	—  	  	 	—  	  	 	21	 	 	 	21	 	
Policy fees and other income	  	 	166	  	 	105	  	 	18	  	 	4	 	 	 	293	 	
 	  			  			  			  				 				
Total revenues	  	 	2,954	  	 	1,475	  	 	529	  	 	165	 	 	 	5,123	 	
 	  			  			  			  				 				
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,385	  	 	708	  	 	66	  	 	18	 	 	 	2,177	 	
Interest credited	  	 	180	  	 	467	  	 	—  	  	 	—  	 	 	 	647	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	531	  	 	122	  	 	129	  	 	47	 	 	 	829	 	
Amortization of deferred acquisition costs and intangibles	  	 	455	  	 	63	  	 	23	  	 	7	 	 	 	548	 	
Interest expense	  	 	5	  	 	1	  	 	—  	  	 	114	 	 	 	120	 	
 	  			  			  			  				 				
Provision for income taxes	  	 	2,556	  	 	1,361	  	 	218	  	 	186	 	 	 	4,321	 	
 	  			  			  			  				 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	398	  	 	114	  	 	311	  	 	(21	)	 	 	802	 	
 	  			  			  			  				 				
Provision for income taxes	  	 	146	  	 	41	  	 	94	  	 	8	 	 	 	289	 	
 	  			  			  			  				 				
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	 	252	  	 	73	  	 	217	  	 	(29	)	 	 	513	 	
 	  			  			  			  				 				
Net realized investment gains on investments, net of tax	  	 	—  	  	 	—  	  	 	—  	  	 	(14	)	 	 	(14	)	
One-time tax charge relating to initial public offering	  	 	—  	  	 	—  	  	 	—  	  	 	22	 	 	 	22	 	
 	  			  			  			  				 				
NET OPERATING EARNINGS (LOSS)	  	$	252	  	$	73	  	$	217	  	$	(21	)	 	$	521	 	

Nine months ended September 30, 2004 
	  	Protection
Segment
	  	RI&I
Segment
	  	Mortgage
Segment
	  	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Premiums	  	$	3,304	  	$	817	  	$	587	  	$	74	 	 	$	4,782	 	
Net investment income	  	 	867	  	 	1,165	  	 	186	  	 	117	 	 	 	2,335	 	
Net realized investment gains	  	 	—  	  	 	—  	  	 	—  	  	 	24	 	 	 	24	 	
Policy fees and other income	  	 	257	  	 	157	  	 	28	  	 	10	 	 	 	452	 	
 	  			  			  			  				 				
Total revenues	  	 	4,428	  	 	2,139	  	 	801	  	 	225	 	 	 	7,593	 	
 	  			  			  			  				 				
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	2,083	  	 	989	  	 	112	  	 	27	 	 	 	3,211	 	
Interest credited	  	 	271	  	 	704	  	 	—  	  	 	—  	 	 	 	975	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	798	  	 	181	  	 	193	  	 	56	 	 	 	1,228	 	
Amortization of deferred acquisition costs and intangibles	  	 	653	  	 	88	  	 	35	  	 	14	 	 	 	790	 	
Interest expense	  	 	9	  	 	1	  	 	—  	  	 	170	 	 	 	180	 	
 	  			  			  			  				 				
Total benefits and expenses	  	 	3,814	  	 	1,963	  	 	340	  	 	267	 	 	 	6,384	 	
 	  			  			  			  				 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	614	  	 	176	  	 	461	  	 	(42	)	 	 	1,209	 	
 	  			  			  			  				 				
Provision for income taxes	  	 	227	  	 	63	  	 	142	  	 	(7	)	 	 	425	 	
 	  			  			  			  				 				
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	 	387	  	 	113	  	 	319	  	 	(35	)	 	 	784	 	
 	  			  			  			  				 				
Net realized investment gains on investments, net of tax	  	 	—  	  	 	—  	  	 	—  	  	 	(16	)	 	 	(16	)	
One-time tax charge relating to initial public offering	  	 	—  	  	 	—  	  	 	—  	  	 	22	 	 	 	22	 	
 	  			  			  			  				 				
NET OPERATING EARNINGS (LOSS)	  	$	387	  	$	113	  	$	319	  	$	(29	)	 	$	790	 	

16

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Segment Net Earnings QTD - Retirement Income and Investments
(Dollar amounts in millions) 

Three months ended March 31, 2004 
	  	Spread Based
Retail
Products
	  	Fee
Based
Products
	 	 	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	277	  	$	—  	 	 	$	—  	  	$	277	
Net investment income	  	 	296	  	 	5	 	 	 	76	  	 	377	
Policy fees and other income	  	 	2	  	 	50	 	 	 	—  	  	 	52	
 	  			  				 			  			
Total revenues	  	 	575	  	 	55	 	 	 	76	  	 	706	
 	  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	333	  	 	5	 	 	 	—  	  	 	338	
Interest credited	  	 	163	  	 	4	 	 	 	66	  	 	233	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	28	  	 	32	 	 	 	1	  	 	61	
Amortization of deferred acquisition costs and intangibles	  	 	26	  	 	2	 	 	 	—  	  	 	28	
Interest expense	  	 	—  	  	 	—  	 	 	 	—  	  	 	—  	
 	  			  				 			  			
Total benefits and expenses	  	 	550	  	 	43	 	 	 	67	  	 	660	
 	  			  				 			  			
EARNINGS BEFORE INCOME TAXES	  	 	25	  	 	12	 	 	 	9	  	 	46	
 	  			  				 			  			
Provision for income taxes	  	 	9	  	 	4	 	 	 	3	  	 	16	
 	  			  				 			  			
SEGMENT NET EARNINGS	  	$	16	  	$	8	 	 	$	6	  	$	30	

Three months ended June 30, 2004 
	  	Spread Based
Retail
Products
	  	Fee
Based
Products
	 	 	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	321	  	$	—  	 	 	$	—  	  	$	321	
Net investment income	  	 	312	  	 	(1	)	 	 	84	  	 	395	
Policy fees and other income	  	 	4	  	 	49	 	 	 	—  	  	 	53	
 	  			  				 			  			
Total revenues	  	 	637	  	 	48	 	 	 	84	  	 	769	
 	  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	372	  	 	(2	)	 	 	—  	  	 	370	
Interest credited	  	 	167	  	 	—  	 	 	 	67	  	 	234	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	33	  	 	27	 	 	 	1	  	 	61	
Amortization of deferred acquisition costs and intangibles	  	 	30	  	 	5	 	 	 	—  	  	 	35	
Interest expense	  	 	—  	  	 	1	 	 	 	—  	  	 	1	
 	  			  				 			  			
Total benefits and expenses	  	 	602	  	 	31	 	 	 	68	  	 	701	
 	  			  				 			  			
EARNINGS BEFORE INCOME TAXES	  	 	35	  	 	17	 	 	 	16	  	 	68	
 	  			  				 			  			
Provision for income taxes	  	 	13	  	 	6	 	 	 	6	  	 	25	
 	  			  				 			  			
SEGMENT NET EARNINGS	  	$	22	  	$	11	 	 	$	10	  	$	43	

Three months ended September 30, 2004 
	  	Spread Based
Retail
Products
	  	Fee
Based
Products
	 	 	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	219	  	$	—  	 	 	$	—  	  	$	219	
Net investment income	  	 	312	  	 	3	 	 	 	78	  	 	393	
Policy fees and other income	  	 	5	  	 	47	 	 	 	—  	  	 	52	
 	  			  				 			  			
Total revenues	  	 	536	  	 	50	 	 	 	78	  	 	664	
 	  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	279	  	 	2	 	 	 	—  	  	 	281	
Interest credited	  	 	164	  	 	2	 	 	 	71	  	 	237	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	31	  	 	27	 	 	 	1	  	 	59	
Amortization of deferred acquisition costs and intangibles	  	 	23	  	 	2	 	 	 	—  	  	 	25	
Interest expense	  	 	1	  	 	(1	)	 	 	—  	  	 	—  	
 	  			  				 			  			
Total benefits and expenses	  	 	498	  	 	32	 	 	 	72	  	 	602	
 	  			  				 			  			
EARNINGS BEFORE INCOME TAXES	  	 	38	  	 	18	 	 	 	6	  	 	62	
 	  			  				 			  			
Provision for income taxes	  	 	14	  	 	6	 	 	 	2	  	 	22	
 	  			  				 			  			
SEGMENT NET EARNINGS	  	$	24	  	$	12	 	 	$	4	  	$	40	

Segment Adjusted Pro Forma Net Operating Earnings is equivalent to Adjusted Pro Forma Segment Net Earnings.
 
17

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Segment Net Earnings YTD - Retirement Income and Investments
(Dollar amounts in millions) 

Three months ended March 31, 2004 
	  	Spread Based
Retail
Products
	  	Fee
Based
Products
	  	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	277	  	$	—  	  	$	—  	  	$	277	
Net investment income	  	 	296	  	 	5	  	 	76	  	 	377	
Policy fees and other income	  	 	2	  	 	50	  	 	—  	  	 	52	
 	  			  			  			  			
Total revenues	  	 	575	  	 	55	  	 	76	  	 	706	
 	  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	333	  	 	5	  	 	—  	  	 	338	
Interest credited	  	 	163	  	 	4	  	 	66	  	 	233	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	28	  	 	32	  	 	1	  	 	61	
Amortization of deferred acquisition costs and intangibles	  	 	26	  	 	2	  	 	—  	  	 	28	
Interest expense	  	 	—  	  	 	—  	  	 	—  	  	 	—  	
 	  			  			  			  			
Total benefits and expenses	  	 	550	  	 	43	  	 	67	  	 	660	
 	  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	25	  	 	12	  	 	9	  	 	46	
 	  			  			  			  			
Provision for income taxes	  	 	9	  	 	4	  	 	3	  	 	16	
 	  			  			  			  			
SEGMENT NET EARNINGS	  	$	16	  	$	8	  	$	6	  	$	30	

Six months ended June 30, 2004 
	  	Spread Based
Retail
Products
	  	Fee
Based
Products
	  	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	598	  	$	—  	  	$	—  	  	$	598	
Net investment income	  	 	608	  	 	4	  	 	160	  	 	772	
Policy fees and other income	  	 	6	  	 	99	  	 	—  	  	 	105	
 	  			  			  			  			
Total revenues	  	 	1,212	  	 	103	  	 	160	  	 	1,475	
 	  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	705	  	 	3	  	 	—  	  	 	708	
Interest credited	  	 	330	  	 	4	  	 	133	  	 	467	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	61	  	 	59	  	 	2	  	 	122	
Amortization of deferred acquisition costs and intangibles	  	 	56	  	 	7	  	 	—  	  	 	63	
Interest expense	  	 	—  	  	 	1	  	 	—  	  	 	1	
 	  			  			  			  			
Total benefits and expenses	  	 	1,152	  	 	74	  	 	135	  	 	1,361	
 	  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	60	  	 	29	  	 	25	  	 	114	
 	  			  			  			  			
Provision for income taxes	  	 	22	  	 	10	  	 	9	  	 	41	
 	  			  			  			  			
SEGMENT NET EARNINGS	  	$	38	  	$	19	  	$	16	  	$	73	

Nine months ended September 30, 2004 
	  	Spread Based
Retail
Products
	  	Fee
Based
Products
	  	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	817	  	$	 —  	  	$	 —  	  	$	817	
Net investment income	  	 	920	  	 	7	  	 	238	  	 	1,165	
Policy fees and other income	  	 	11	  	 	146	  	 	—  	  	 	157	
 	  			  			  			  			
Total revenues	  	 	1,748	  	 	153	  	 	238	  	 	2,139	
 	  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	984	  	 	5	  	 	—  	  	 	989	
Interest credited	  	 	494	  	 	6	  	 	204	  	 	704	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	92	  	 	86	  	 	3	  	 	181	
Amortization of deferred acquisition costs and intangibles	  	 	79	  	 	9	  	 	—  	  	 	88	
Interest expense	  	 	1	  	 	—  	  	 	—  	  	 	1	
 	  			  			  			  			
Total benefits and expenses	  	 	1,650	  	 	106	  	 	207	  	 	1,963	
 	  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	98	  	 	47	  	 	31	  	 	176	
 	  			  			  			  			
Provision for income taxes	  	 	36	  	 	16	  	 	11	  	 	63	
 	  			  			  			  			
SEGMENT NET EARNINGS	  	$	62	  	$	31	  	$	20	  	$	113	

Segment Adjusted Pro Forma Net Operating Earnings is equivalent to Adjusted Pro Forma Segment Net Earnings.
 
18

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Net Earnings by Quarter
(Dollar amounts in millions)

 	  	2004
	 	
 	  	Q1
	 	 	Q2
	 	 	Q3
	 	 	YTD
	 	
REVENUES:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	  	$	1,619	 	 	$	1,640	 	 	$	1,523	 	 	$	4,782	 	
Net investment income	  	 	753	 	 	 	797	 	 	 	785	 	 	 	2,335	 	
Net realized investment gains	  	 	15	 	 	 	6	 	 	 	3	 	 	 	24	 	
Policy fees and other income	  	 	149	 	 	 	144	 	 	 	159	 	 	 	452	 	
 	  				 				 				 				
Total revenues	  	 	2,536	 	 	 	2,587	 	 	 	2,470	 	 	 	7,593	 	
 	  				 				 				 				
BENEFITS AND EXPENSES:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,080	 	 	 	1,097	 	 	 	1,034	 	 	 	3,211	 	
Interest credited	  	 	323	 	 	 	324	 	 	 	328	 	 	 	975	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	413	 	 	 	416	 	 	 	399	 	 	 	1,228	 	
Amortization of deferred acquisition costs and intangibles	  	 	284	 	 	 	264	 	 	 	242	 	 	 	790	 	
Interest expense	  	 	61	 	 	 	59	 	 	 	60	 	 	 	180	 	
 	  				 				 				 				
Total benefits and expenses	  	 	2,161	 	 	 	2,160	 	 	 	2,063	 	 	 	6,384	 	
 	  				 				 				 				
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	  	 	375	 	 	 	427	 	 	 	407	 	 	 	1,209	 	
 	  				 				 				 				
Provision for income taxes	  	 	121	 	 	 	168	 	 	 	136	 	 	 	425	 	
 	  				 				 				 				
NET EARNINGS FROM CONTINUING OPERATIONS	  	 	254	 	 	 	259	 	 	 	271	 	 	 	784	 	
 	  				 				 				 				
Net realized investment gains on investments, net of tax	  	 	(10	)	 	 	(4	)	 	 	(2	)	 	 	(16	)	
One-time tax charge relating to initial public offering	  	 	—  	 	 	 	22	 	 	 	—  	 	 	 	22	 	
 	  				 				 				 				
NET OPERATING EARNINGS	  	$	244	 	 	$	277	 	 	$	269	 	 	$	790	 	

Note: Pro forma segment net earnings for the Protection, Mortgage Insurance and Corporate and Other segments are not affected by the upcoming change in the assumed effective date of the pro forma adjustments. As a result, pro forma segment net earnings for these segments are the same as adjusted pro forma segment net earnings. In the Retirement Income and Investments segment, the upcoming change in the assumed effective date results in the adjustments described in note (d) on page 8 and shown on pages 5, 6 and 7 under the heading “Adjustments for change in assumed effective date.”
 
19

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
Adjusted Pro Forma Segment Net Earnings by Quarter - Retirement Income and Investments
(Dollar amounts in millions) 

 	  	2004
	
 	  	Q1
	  	Q2
	  	Q3
	  	YTD
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	277	  	$	321	  	$	219	  	$	817	
Net investment income	  	 	377	  	 	395	  	 	393	  	 	1,165	
Policy fees and other income	  	 	52	  	 	53	  	 	52	  	 	157	
 	  			  			  			  			
Total revenues	  	 	706	  	 	769	  	 	664	  	 	2,139	
 	  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	338	  	 	370	  	 	281	  	 	989	
Interest credited	  	 	233	  	 	234	  	 	237	  	 	704	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	61	  	 	61	  	 	59	  	 	181	
Amortization of deferred acquisition costs and intangibles	  	 	28	  	 	35	  	 	25	  	 	88	
Interest expense	  	 	—  	  	 	1	  	 	—  	  	 	1	
 	  			  			  			  			
Total benefits and expenses	  	 	660	  	 	701	  	 	602	  	 	1,963	
 	  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	46	  	 	68	  	 	62	  	 	176	
 	  			  			  			  			
Provision for income taxes	  	 	16	  	 	25	  	 	22	  	 	63	
 	  			  			  			  			
SEGMENT NET EARNINGS	  	$	30	  	$	43	  	$	40	  	$	113	

Segment Adjusted Pro Forma Net Operating Earnings is equivalent to Adjusted Pro Forma Segment Net Earnings.
 
Note: Pro forma segment net earnings for the Protection, Mortgage Insurance and Corporate and Other segments are not affected by the upcoming change in the assumed effective date of the pro forma adjustments. As a result, pro forma segment net earnings for these segments are the same as adjusted pro forma segment net earnings. In the Retirement Income and Investments segment, the upcoming change in the assumed effective date results in the adjustments described in note (d) on page 8 and shown on pages 5, 6 and 7 under the heading “Adjustments for change in assumed effective date.”
 
20

GENWORTH FINANCIAL
1Q, 2Q & 3Q 2004 SELECTED FINANCIAL INFORMATION
 
About Genworth Financial
 
Genworth is a leading insurance holding company, serving the lifestyle protection, retirement income, investment and mortgage insurance needs of more than 15 million customers, and has operations in 20 countries, including the U.S., Canada, Australia, the U.K. and more than a dozen other European countries. For more information, visit www.genworth.com
 
Inquiries:
Genworth Financial, Inc., Richmond
Jean Peters, 804/662-2693
jean.peters@genworth.com
 
Alicia Charity, 804/662-2248
alicia.charity@genworth.com
 
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