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
 
January 27, 2005
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 January 27, 2005, Genworth Financial, Inc. issued (1) a press release announcing its financial results for the quarter ended December 31, 2004, 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, 2004, 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(c). Financial Statements and Exhibits.
 
The following materials are furnished as exhibits to this Current Report on Form 8-K:

Exhibit
Number
	  	Description of Exhibit

99.1	  	Press release dated January 27, 2005.	
		
99.2	  	Financial supplement for the quarter ended December 31, 2004.	
 
2

SIGNATURE
 
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.

 	 	GENWORTH FINANCIAL, INC.	
			
DATE: January 27, 2005	 	By:	 	/s/ Richard P. McKenney
	
 	 	 	 	Richard P. McKenney	
 	 	 	 	Senior Vice President –	
 	 	 	 	Chief Financial Officer	

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Exhibit Index

Exhibit
Number
	  	Description of Exhibit

99.1	  	Press release dated January 27, 2005.	
		
99.2	  	Financial supplement for the quarter ended December 31, 2004.	
 
4

	
 
6620 West Broad Street
Richmond, Virginia 23230
 
Genworth Financial Reports Fourth Quarter 2004 Earnings

 	  	Three months ended December 31,
	
 	  	2004
	  	2003
	
(Amounts in millions, except for per share) 	  	Total
	  	Per diluted
share
	  	Total
	  	Per diluted
share
	
 	  	(Unaudited)	
Net earnings from continuing operations	  	$	346	  	$	0.70	  	$	220	  	$	0.45	
 	  			  			  			  			
Pro forma net earnings from continuing operations	  	$	346	  	$	0.70	  	$	211	  	$	0.43	
 	  			  			  			  			
Pro forma net operating earnings	  	$	254	  	$	0.52	  	$	179	  	$	0.37	

Richmond, VA (January 27, 2005) – Genworth Financial, Inc. (NYSE: GNW) today reported net earnings from continuing operations for the fourth quarter of 2004 of $346 million, or $0.70 per diluted share. Net earnings from continuing operations for the fourth quarter of 2003 were $220 million, or $0.45 per diluted share.
 
In connection with the company’s initial public offering (IPO) completed on May 28, 2004, the company effected a corporate reorganization that included a series of significant reinsurance, recapitalization and separation transactions. As more fully explained at the end of this release, the company is presenting pro forma financial information that reflects those transactions to enable a more meaningful comparison of its period-to-period results.
 
Pro forma net earnings from continuing operations in the fourth quarter of 2004 were $346 million, or $0.70 per diluted share, compared to $211 million or $0.43 per diluted share in the fourth quarter of 2003. Pro forma net operating earnings for the fourth quarter of 2004 were $254 million, or $0.52 per diluted share, compared to $179 million or $0.37 per diluted share in the fourth quarter of 2003.
 
Pro forma net operating earnings in the fourth quarter of 2004 consist of pro forma net earnings from continuing operations, excluding after-tax net realized investment losses of $1 million, a $68 million IPO-related net tax benefit recorded during the quarter and a $25 million after-tax gain related to our waiver of contractual rights under an outsourcing services agreement with General Electric’s (GE) global business processing operation, 60% of which was sold in the fourth quarter. Pro forma net operating earnings in the fourth quarter of 2004 included a one-time charge of $32 million after-tax on a small run-off block of equity-indexed annuities resulting from an adjustment of reserving processes.
 
Pro forma net operating earnings in the fourth quarter of 2003 consist of pro forma net earnings from continuing operations, excluding after-tax net realized investment gains of $32 million.

“2004 was a year of tremendous progress in growing our business, building distribution relationships and maintaining our focus on expense and risk disciplines,” said Michael D. Fraizer, chairman and chief executive officer. “We finished the full year with pro forma net operating earnings per share growth of 20 percent, good sequential sales progress and operating ROE of 9.8 percent. We continue to make steady improvements toward our long term goal of 12 percent operating ROE by 2008, and expect to achieve 2005 net operating earnings of $2.30-to-$2.40 per share.”
 
Management believes that the presentation of net operating earnings and operating ROE enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. However, net operating earnings and operating ROE should not be viewed as a substitute for net earnings or return on equity prepared under accounting principles generally accepted in the U.S. (GAAP). (Please refer to the disclosure at the end of this release for a discussion of the basis on which financial information is presented in this release.)
 
Key Fourth Quarter Operating Highlights
 
 	•	 	In the Protection segment, term life insurance sales were $27 million, up 42 percent compared to the prior year quarter and 4 percent on a sequential quarter basis, as a result of competitive pricing and technology-enhanced customer service. Universal life insurance sales were even with the prior year quarter and up 20 percent on a sequential quarter basis, reflecting the launch of new products for the age 50+ market in the second quarter of 2004. Payment Protection Insurance (PPI) sales, excluding runoff business (1) , were up 16 percent compared to the fourth quarter of 2003.	
 
 	•	 	Retirement Income and Investments’ (RI&I) sales of income distribution series products (2) nearly doubled over the prior year quarter, to $84 million, and were up 20 percent on a sequential quarter basis. Spread institutional sales of $796 million in the quarter were up 51 percent from the prior year quarter and 37 percent sequentially, driven primarily by two large contracts issued in the quarter.	
 
 	•	 	Mortgage Insurance (MI) continued its international expansion, with international insurance in-force (IIF) up $56 billion, or 41 percent over the prior year quarter. Excluding the impact of favorable foreign currency (FX), international IIF grew 35% driven primarily by increased account penetration in Australia and Canada. The unearned premium reserve grew to $1.5 billion at December 31, 2004.	
 
Pro Forma Consolidated Operating Results
 
The company operates in three primary business segments: Protection, Retirement Income & Investments, and Mortgage Insurance, in addition to a Corporate and Other Segment.
 
Consolidated fourth quarter pro forma net operating earnings growth of 42 percent was driven by increases in all three primary business segments over the prior year quarter, and included $6 million of favorable FX.
 
Protection Segment pro forma net operating earnings increased 46 percent to $140 million compared to $96 million in the prior year quarter primarily from non-recurring items in the prior year quarter and from growth in life and payment protection.

(1)	In the third quarter of 2003, the company evaluated its contractual relationships with PPI distributors against targeted return thresholds and made decisions to terminate or non-renew certain contracts which the company refers to as “non-core” or “runoff.” Existing business under these contracts will runoff over several years in the normal course of business.	
(2)	Income distribution series products are comprised of the company’s retirement income annuity product and two variable annuity riders that provide similar income features. The term does not include immediate annuities or fixed annuities, which also serve income distribution needs but are reported separately in the company’s fourth quarter financial supplement.	
 
2

RI&I Segment pro forma net operating earnings grew to $35 million in the fourth quarter of 2004 from $12 million in the fourth quarter of 2003. Growth was due to higher assets under management, improved spreads and increased fee income from new contracts in 2004 to manage GE’s municipal guaranteed investment contracts (GIC) business. Growth was partially offset by a one-time charge of $32 million after-tax on a small run-off block of equity-indexed annuities resulting from an adjustment of reserving processes.
 
Mortgage Insurance Segment pro forma net operating earnings increased to $107 million from $77 million in the fourth quarter of 2003 due to continued strong international growth, $13 million of higher taxes in the prior year quarter and $4 million of favorable FX.
 
Corporate and Other Segment pro forma net operating loss increased to $28 million in the fourth quarter of 2004 from $6 million in the fourth quarter of 2003 primarily due to non-recurring tax benefits of $32 million in the prior year quarter.
 
All segment information below is presented on a pro forma basis. Segment pro forma net operating earnings presented are equivalent to pro forma net earnings for all segments except Corporate and Other. For a reconciliation of the Corporate and Other Segment pro forma net operating earnings to GAAP  net earnings, see the disclosure at the end of this release.
 
Pro Forma Segment Net Operating Earnings

Protection
Pro forma net operating earnings (unaudited)
(Dollar amounts in millions)
	  	Q4 04
	  	Q4 03
	 	
Life	  	$	67	  	$	50	 	
Long term care	  	 	46	  	 	47	 	
Payment protection	  	 	22	  	 	(5	)	
Group	  	 	5	  	 	4	 	
 	  			  				
Total Protection	  	$	140	  	$	96	 	

Sales
(Dollar amounts in millions)
	  	Q4 04
	  	Q4 03
	 	
Life	  	$	39	  	$	31	 	
Long term care	  	 	41	  	 	54	 	
Payment protection	  	 	351	  	 	498	 	
Group	  	 	66	  	 	57	 	
 	  			  				
Total Protection	  	$	497	  	$	640	 	

Protection Segment pro forma net operating earnings increased $44 million due to overall business growth and non-recurring items in the prior year quarter. Life pro forma net operating earnings were up $17 million to $67 million due to in-force growth and lower expenses offset by less favorable mortality of $4 million when compared to the prior year quarter. The prior year quarter also included an increase in policyholder reserves of $10 million that did not recur. Long term care (LTC) pro forma net operating earnings were down $1 million to $46 million. Payment Protection (PPI) pro forma net operating earnings grew to $22 million compared to a loss of $5 million in the prior year quarter. The current quarter included new business growth of $4 million and $2 million related to favorable FX. The prior year quarter included $21 million of one-time expenses related to employee benefit costs, increased DAC amortization and higher travel insurance claim reserves.
 
Sales of term life were $27 million in the fourth quarter of 2004, compared with $19 million in the comparable prior year period. This growth reflects competitive pricing and technology-enhanced customer service. LTC sales decreased to $41 million in the fourth quarter of 2004 from $54 million in the prior year quarter reflecting shifts in market demand and pricing conditions. As planned, overall PPI sales declined from $498 million in the fourth quarter of 2003 to $351 million in the fourth quarter of 2004 reflecting the strategic decision to exit lower return distribution relationships. PPI sales, excluding runoff business, grew 16 percent from $296 million in the fourth quarter of 2003 to $343 million in the fourth quarter of 2004 from continued growth across European markets. Group sales increased 16 percent in the current year quarter compared to the prior year quarter from growth in all products.
 
3

							
Retirement Income & Investments
Pro forma net operating earnings (unaudited)
(Dollar amounts in millions)
	  	Q4 04
	  	Q4 03
	
Spread based retail	  	$	9	  	$	8	
Fee based retail	  	 	16	  	 	—	
Spread based institutional	  	 	10	  	 	4	
 	  			  			
Total RI&I	  	$	35	  	$	12	

Sales
(Dollar amounts in millions)
	  	Q4 04
	  	Q4 03
	
Spread based retail	  	$	599	  	$	675	
Fee based retail	  	 	561	  	 	678	
Spread based institutional	  	 	796	  	 	526	
 	  			  			
Total RI&I	  	$	1,956	  	$	1,879	

RI&I pro forma net operating earnings were $35 million for the fourth quarter of 2004 compared to $12 million in the prior year period. Spread retail pro forma net operating earnings were up modestly to $9 million compared to $8 million in the prior year quarter. This included a one-time charge of $32 million after-tax on a small run-off block of equity-indexed annuities resulting from an adjustment of reserving processes. This charge was offset by growth in assets under management, improved investment spreads, and lower guarantee fund assessments in the current quarter. The prior year quarter included $15 million of accelerated DAC amortization. Fee retail pro forma net operating earnings increased to $16 million compared to break-even in the prior year quarter primarily due to new contracts in 2004 to manage GE’s municipal GIC business as well as growth due to higher assets under management. Spread institutional pro forma net operating earnings increased to $10 million in the current quarter compared to $4 million in the prior year quarter primarily due to bond prepayments in the current quarter and improved spread.
 
Fourth quarter 2004 sales of spread retail products declined 11 percent compared to the prior year quarter, driven primarily by pricing actions taken in fixed annuities and uneven flows in both immediate annuity and structured settlement sales. Sales of fee retail products declined 17 percent from the prior year quarter due to the continued market focus on products with a variety of guarantees, many of which the company elected not to offer, as well as restrictions we placed on fixed account variable annuity sales. Sales of Genworth’s income distribution series products were up 87 percent to $84 million in the current period quarter compared to the prior year quarter. The increase in sales of spread institutional products from $526 million to $796 million reflects uneven timing of new contracts.
 
4

							
Mortgage Insurance Segment
Pro forma net operating earnings (unaudited)
(Dollar amounts in millions)
	  	Q4 04
	  	Q4 03
	
International	  	$	57	  	$	38	
United States	  	 	50	  	 	39	
 	  			  			
Total Mortgage Insurance	  	$	107	  	$	77	

Sales
(Dollar amounts in millions)
	  	Q4 04
	  	Q4 03
	
International	  	$	15,225	  	$	12,210	
United States	  	 	7,074	  	 	18,087	
 	  			  			
Total Mortgage Insurance	  	$	22,299	  	$	30,297	

Mortgage insurance pro forma net operating earnings were $107 million in the fourth quarter of 2004 compared to $77 million in the prior year quarter, an increase of $30 million. International pro forma net operating earnings were up $19 million to $57 million compared to $38 million in the prior year quarter. This growth was primarily due to strong revenue growth, continued low loss ratios, higher taxes in the prior year quarter and favorable FX of $4 million. U.S. pro forma net operating earnings were up $11 million to $50 million due to higher taxes in the prior year quarter and solid in-force performance.
 
International new insurance written was $15 billion, up 25 percent including $1 billion related to FX. Growth was primarily due to deeper account penetration in Canada and Australia and growth in new insurance written in Europe. U.S. new insurance written was $7 billion in the current year quarter, down from $18 billion in the prior year quarter. This decrease was driven by a $7 billion decline in prime credit bulk sales due to a smaller market and a $4 billion decline in flow sales from a smaller mortgage origination market and actions taken to restructure certain excess of loss risk sharing arrangements.

Corporate and Other Segment (unaudited)
	  	Q4 04
	 	 	Q4 03
	 	
Pro forma net operating loss
(Dollar amounts in millions)	  	$	(28	)	 	$	(6	)	
 
The Corporate and Other Segment had a pro forma net operating loss of $28 million in the fourth quarter of 2004 compared to a loss of $6 million in the fourth quarter of 2003. The current quarter included higher litigation expenses. The prior year quarter included $32 million of tax benefits principally associated with the company’s international operations, $8 million of higher reserves at our captive reinsurance subsidiary and other expenses that did not recur.
 
Shareholders’ equity at December 31, 2004 was $12.9 billion, or $26.28 per share. Shareholders’ equity, excluding accumulated other comprehensive income, at December 31, 2004 was $11.3 billion. Book value per share, excluding accumulated other comprehensive income, increased to $22.99 at December 31, 2004, compared to $22.35 at September 30, 2004.
 
5

Earnings Conference Call Information
 
The company will hold a conference call on January 28 from 10 a.m. to 11 a.m. (EST) to discuss fourth quarter results and business outlook.
 
Genworth’s conference call will be accessible via telephone and the Internet. This earnings release and the fourth-quarter financial supplement are now available on the company’s website. The conference call materials will be available on the company’s website January 28 prior to the conference call. Investors are encouraged to review all of these materials. To access the web cast, go to www.genworth.com at least 15 minutes prior to the event to register and download and install any necessary software. To access the call by telephone, please dial 1-800-599-9795 (U.S.) or 1-617-786-2905 (outside the U.S.) and enter the access code “Genworth” to register. A replay of the call will be available from 1 p.m. EST on January 28 through February 4, 2005 by dialing 1-888-286-8010 in the U.S. or 1-617-801-6888 (outside the U.S.) and entering the access code 62549597. The call will also be replayed at the company’s website during this same time period.
 
Basis of Historical and Pro Forma 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. 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 for 2003 contained in this press release was previously published in the prospectuses for the company’s initial public offering and related offerings and 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 unaudited pro forma financial information for 2004 contained in this press release reflects the company’s historical combined financial information as adjusted to give effect to these transactions as if each had occurred as of January 1, 2004. The following transactions are reflected in the unaudited pro forma financial information:
 
 	•	 	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	
 
6

 	•	 	the issuance and sale of $1.9 billion of senior notes and $500 million of commercial paper and the application of the proceeds therefrom.	
 
If the unaudited pro forma financial information for 2004 had been adjusted to give effect to these transactions as if each had occurred as of January 1, 2003, rather than January 1, 2004, then full year pro forma revenues would have been approximately $90 million higher, pro forma benefits and expenses would have been approximately $77 million higher and pro forma net earnings from continuing operations would have been approximately $8 million higher.
 
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.
 
Use of Non-GAAP Measures
 
This press release 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 press release other than a $68 million IPO-related net tax benefit recorded during the fourth quarter of 2004 and a $25 million after-tax gain related to our waiver of contractual rights under an outsourcing services agreement with GE’s global business processing operation, 60% of which was sold in the fourth quarter of 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 at the end of this press release provides a reconciliation of pro forma net operating earnings (as defined above) to historical and pro forma net earnings.
 
Due to the unpredictable nature of the items excluded from the company’s definition of net operating earnings, the company is unable to reconcile its outlook for net operating earnings to net earnings from continuing operations presented in accordance with GAAP.
 
This press release also includes the non-GAAP financial measure entitled “operating ROE”. The company defines operating ROE as pro forma net operating earnings divided by average pro forma stockholders’ interest, excluding accumulated non-owner changes in average stockholders’ interest (commonly referred to as accumulated other comprehensive income (AOCI)). Management believes that analysis of operating ROE enhances understanding of the efficiency with which the company deploys its capital. However, operating ROE as defined by the company should not be viewed as a substitute for GAAP net earnings divided by average stockholders’ interest. The company’s operating ROE for 2004 is presented on a basis consistent with the other pro forma financial information presented elsewhere in this press release. The table at the end of this press release provides a reconciliation of the 2004 operating ROE (as defined above) to 2004 GAAP net earnings divided by average stockholders’ interest. Due to the unpredictable nature of net operating earnings and average stockholders’ interest excluding AOCI, the company is unable to reconcile its outlook for operating ROE to GAAP net earnings divided by average stockholders’ interest.
 
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 press release are presented on a net operating earnings basis, which is the same as net earnings under GAAP for all segments, except Corporate and Other Segment. For a reconciliation of net operating earnings for Corporate and Other Segment to net earnings presented in accordance with GAAP, see the table at the end of this press release. The term “net operating loss” as used in this press release is also a non-GAAP financial measure and has an analogous meaning to “net operating earnings.”
 
7

Definition of Sales
 
The term “sales” as used in this press release means (1) annualized first-year premiums for term life insurance, long-term care insurance and group life and health insurance; (2) new premiums/deposits for universal life insurance, spread-based and variable products; (3) new deposits for managed assets (4) written premiums gross of reinsurance and cancellations for PPI; and (5) new insurance written for mortgage insurance, which in each case reflect the amount of business the company generated during each period presented. Sales do not include renewal premiums on policies or contracts written during prior periods. The company considers annualized first-year premiums, deposits, written premiums and new insurance written 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. This operating measure enables the company to compare its operating performance across periods without regard to revenues or profitability related to policies or contracts sold in prior periods or from investments or other sources.
 
Cautionary Note Regarding Forward-Looking Statements
 
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,” or words of similar meaning and include, but are not limited to, statements regarding the outlook for the 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, including the following:
 
 	•	 	Risks relating to the company’s businesses, including interest rate fluctuations, downturns and volatility in equity markets, defaults in portfolio securities, downgrades in the company’s financial strength and credit ratings, unexpected changes in mortality and morbidity rates, accelerated amortization of deferred acquisition costs and present value of future profits, impairment of the value of goodwill, decreases in the volume of mortgage originations, increases in mortgage insurance cancellations, increases in the use of captive reinsurance in the mortgage insurance market, the influence of large mortgage lenders and investors, foreign exchange rate fluctuations, insufficiency of reserves, legal constraints on dividend distributions by subsidiaries, illiquid investments, competition, inability to attract or retain independent sales intermediaries and dedicated sales specialists, defaults by counterparties, regulatory restrictions on the company’s operations, changes in applicable laws and regulations, legal or regulatory actions or investigations, political or economic instability and the threat of terrorism; and	
 
 	•	 	Risks relating to the company’s separation from GE, including the loss of benefits associated with GE’s brand and reputation, the company’s need to establish the new Genworth brand identity quickly and effectively, the company’s inability to present financial information in SEC filings that accurately represents the results the company would have achieved as a stand-alone company, the possibility that the company will not be able to replace services previously provided by GE on comparable terms, uncertainty of amounts and timing of payments that the company has agreed to make to GE under the company’s tax matters agreement and other matters relating to that agreement, potential conflicts of interest with GE and GE’s engaging in the same type of business as the company does in the future.	
 
8

The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
 
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 .
 
# # #
 
Contact Information:

Investors:	    	Jean Peters, 804.662.2693	
 	    	jean.peters@genworth.com	
		
 	    	Alicia Charity, 804.662.2248	
 	    	alicia.charity@genworth.com	
		
Media:	    	Mike Kachel, 804.662.2534	
 	    	mike.kachel@genworth.com	
 
9

COMBINED STATEMENT OF EARNINGS INFORMATION

 	  	Three months ended December 31,
	
(Amounts in millions, except per share data)	  	Historical
	 	 	Pro forma
	
 	  	2004
	 	 	2003
	 	 	2004
	 	 	2003
	
 	  	(Unaudited)	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	  	$	1,606	 	 	$	1,766	 	 	$	1,606	 	 	$	1,651	
Net investment income	  	 	825	 	 	 	1,031	 	 	 	825	 	 	 	757	
Net realized investment gains (losses)	  	 	(1	)	 	 	39	 	 	 	(1	)	 	 	49	
Policy fees and other income	  	 	212	 	 	 	230	 	 	 	212	 	 	 	134	
 	  				 				 				 			
Total revenues	  	 	2,642	 	 	 	3,066	 	 	 	2,642	 	 	 	2,591	
 	  				 				 				 			
Benefits and expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,129	 	 	 	1,464	 	 	 	1,129	 	 	 	1,184	
Interest credited	  	 	344	 	 	 	402	 	 	 	344	 	 	 	335	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	429	 	 	 	427	 	 	 	429	 	 	 	352	
Amortization of deferred acquisition costs and intangibles	  	 	262	 	 	 	416	 	 	 	262	 	 	 	359	
Interest expense	  	 	63	 	 	 	46	 	 	 	63	 	 	 	61	
 	  				 				 				 			
Total benefits and expenses	  	 	2,227	 	 	 	2,755	 	 	 	2,227	 	 	 	2,291	
 	  				 				 				 			
Earnings from continuing operations before income taxes and accounting changes	  	 	415	 	 	 	311	 	 	 	415	 	 	 	300	
Provision for income taxes	  	 	69	 	 	 	91	 	 	 	69	 	 	 	89	
 	  				 				 				 			
Net earnings from continuing operations	  	 	346	 	 	 	220	 	 	$	346	 	 	$	211	
 	  	 	 	 	 	 	 	 	 				 			
Loss on sale of discontinued operations, net of taxes	  	 	—  	 	 	 	(7	)	 	 	 	 	 	 	 	
 	  				 				 	 	 	 	 	 	 	
Net earnings	  	$	346	 	 	$	213	 	 	 	 	 	 	 	 	
 	  				 				 	 	 	 	 	 	 	
Net earnings per share:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.71	 	 	$	0.44	 	 	 	 	 	 	 	 	
 	  				 				 	 	 	 	 	 	 	
Diluted	  	$	0.70	 	 	$	0.44	 	 	 	 	 	 	 	 	
 	  				 				 	 	 	 	 	 	 	
Shares outstanding	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	 	489.6	 	 	 	489.5	 	 	 	 	 	 	 	 	
Diluted	  	 	492.4	 	 	 	489.5	 	 	 	 	 	 	 	 	

10

COMBINED STATEMENT OF EARNINGS INFORMATION

 	  	Twelve months ended December 31,
	
(Amounts in millions, except per share data)	  	Historical
	 	 	Pro forma
	
 	  	2004
	  	2003
	 	 	2004
	  	2003
	
 	  	(Unaudited)	
Revenues:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	6,559	  	$	6,707	 	 	$	6,388	  	$	6,256	
Net investment income	  	 	3,648	  	 	4,051	 	 	 	3,160	  	 	2,964	
Net realized investment gains	  	 	26	  	 	10	 	 	 	23	  	 	38	
Policy fees and other income	  	 	824	  	 	915	 	 	 	664	  	 	529	
 	  			  				 			  			
Total revenues	  	 	11,057	  	 	11,683	 	 	 	10,235	  	 	9,787	
 	  			  				 			  			
Benefits and expenses:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	4,804	  	 	5,270	 	 	 	4,340	  	 	4,229	
Interest credited	  	 	1,432	  	 	1,624	 	 	 	1,319	  	 	1,358	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	1,812	  	 	1,916	 	 	 	1,657	  	 	1,583	
Amortization of deferred acquisition costs and intangibles	  	 	1,154	  	 	1,351	 	 	 	1,052	  	 	1,149	
Interest expense	  	 	217	  	 	140	 	 	 	243	  	 	205	
 	  			  				 			  			
Total benefits and expenses	  	 	9,419	  	 	10,301	 	 	 	8,611	  	 	8,524	
 	  			  				 			  			
Earnings from continuing operations before income taxes and accounting changes	  	 	1,638	  	 	1,382	 	 	 	1,624	  	 	1,263	
Provision for income taxes	  	 	493	  	 	413	 	 	 	494	  	 	371	
 	  			  				 			  			
Net earnings from continuing operations before accounting changes	  	 	1,145	  	 	969	 	 	$	1,130	  	$	892	
 	  	 	 	  	 	 	 	 			  			
Net earnings from discontinued operations, net of taxes	  	 	—  	  	 	186	 	 	 	 	  	 	 	
Gain (loss) on sale of discontinued operations, net of taxes	  	 	7	  	 	(74	)	 	 	 	  	 	 	
 	  			  				 	 	 	  	 	 	
Net earnings before accounting change	  	 	1,152	  	 	1,081	 	 	 	 	  	 	 	
Cumulative effect of accounting changes, net of taxes	  	 	5	  	 	—  	 	 	 	 	  	 	 	
 	  			  				 	 	 	  	 	 	
Net earnings	  	$	1,157	  	$	1,081	 	 	 	 	  	 	 	
 	  			  				 	 	 	  	 	 	
Net earnings per share:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Basic	  	$	2.36	  	$	2.21	 	 	 	 	  	 	 	
 	  			  				 	 	 	  	 	 	
Diluted	  	$	2.36	  	$	2.21	 	 	 	 	  	 	 	
 	  			  				 	 	 	  	 	 	
Shares outstanding	  	 	 	  	 	 	 	 	 	 	  	 	 	
Basic	  	 	489.5	  	 	489.5	 	 	 	 	  	 	 	
Diluted	  	 	490.5	  	 	489.5	 	 	 	 	  	 	 	
 
11

PRO FORMA FINANCIAL INFORMATION

 	  	Three months ended December 31, 2004
	 	
(Dollar amounts in millions)	  	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
	 	
 	  	(Unaudited)	 	
Revenues:	  	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	 	
Premiums	  	$	1,606	 	 	$	—  	  	$	—  	  	$	—  	  	$	1,606	 	
Net investment income	  	 	825	 	 	 	—  	  	 	—  	  	 	—  	  	 	825	 	
Net realized investment (losses)	  	 	(1	)	 	 	—  	  	 	—  	  	 	—  	  	 	(1	)	
Policy fees and other income	  	 	212	 	 	 	—  	  	 	—  	  	 	—  	  	 	212	 	
 	  				 			  			  			  				
Total revenues	  	 	2,642	 	 	 	—  	  	 	—  	  	 	—  	  	 	2,642	 	
 	  				 			  			  			  				
Benefits and expenses:	  	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	 	
Benefits and other changes in policy reserves	  	 	1,129	 	 	 	—  	  	 	—  	  	 	—  	  	 	1,129	 	
Interest credited	  	 	344	 	 	 	—  	  	 	—  	  	 	—  	  	 	344	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	429	 	 	 	—  	  	 	—  	  	 	—  	  	 	429	 	
Amortization of deferred acquisition costs and intangibles	  	 	262	 	 	 	—  	  	 	—  	  	 	—  	  	 	262	 	
Interest expense	  	 	63	 	 	 	—  	  	 	—  	  	 	—  	  	 	63	 	
 	  				 			  			  			  				
Total benefits and expenses	  	 	2,227	 	 	 	—  	  	 	—  	  	 	—  	  	 	2,227	 	
 	  				 			  			  			  				
Earnings from continuing operations before income taxes	  	 	415	 	 	 	—  	  	 	—  	  	 	—  	  	 	415	 	
Provision for income taxes	  	 	69	 	 	 	—  	  	 	—  	  	 	—  	  	 	69	 	
 	  				 			  			  			  				
Net earnings from continuing operations	  	$	346	 	 	$	—  	  	$	—  	  	$	—  	  	$	346	 	

																			
 	  	Three months ended December 31, 2003
	
(Dollar amounts in millions)	  	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
	
 	  	(Unaudited)	
Revenues:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	  	$	1,766	  	$	(57	)	 	$	(58	)	 	$	—  	 	 	$	1,651	
Net investment income	  	 	1,031	  	 	(15	)	 	 	(259	)	 	 	—  	 	 	 	757	
Net realized investment gains (losses)	  	 	39	  	 	(1	)	 	 	11	 	 	 	—  	 	 	 	49	
Policy fees and other income	  	 	230	  	 	(65	)	 	 	(31	)	 	 	—  	 	 	 	134	
 	  			  				 				 				 			
Total revenues	  	 	3,066	  	 	(138	)	 	 	(337	)	 	 	—  	 	 	 	2,591	
 	  			  				 				 				 			
Benefits and expenses:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,464	  	 	(60	)	 	 	(220	)	 	 	—  	 	 	 	1,184	
Interest credited	  	 	402	  	 	—  	 	 	 	(67	)	 	 	—  	 	 	 	335	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	427	  	 	(48	)	 	 	(27	)	 	 	—  	 	 	 	352	
Amortization of deferred acquisition costs and intangibles	  	 	416	  	 	(29	)	 	 	(28	)	 	 	—  	 	 	 	359	
Interest expense	  	 	46	  	 	—  	 	 	 	—  	 	 	 	15	 	 	 	61	
 	  			  				 				 				 			
Total benefits and expenses	  	 	2,755	  	 	(137	)	 	 	(342	)	 	 	15	 	 	 	2,291	
 	  			  				 				 				 			
Earnings from continuing operations before income taxes	  	 	311	  	 	(1	)	 	 	5	 	 	 	(15	)	 	 	300	
Provision for income taxes	  	 	91	  	 	2	 	 	 	1	 	 	 	(5	)	 	 	89	
 	  			  				 				 				 			
Net earnings from continuing operations	  	$	220	  	$	(3	)	 	$	4	 	 	$	(10	)	 	$	211	

Note:	For a discussion of notes (a), (b), and (c) to these tables see Notes to Pro Forma Financial Information and Reconciliation Tables.	
 
12

PRO FORMA FINANCIAL INFORMATION

 	  	Twelve months ended December 31, 2004
	
(Dollar amounts in millions)	  	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
	
 	  	(Unaudited)	
Revenues:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	  	$	6,559	  	$	(80	)	 	$	(91	)	 	$	—  	 	 	$	6,388	
Net investment income	  	 	3,648	  	 	(28	)	 	 	(460	)	 	 	—  	 	 	 	3,160	
Net realized investment gains (losses)	  	 	26	  	 	(3	)	 	 	—  	 	 	 	—  	 	 	 	23	
Policy fees and other income	  	 	824	  	 	(103	)	 	 	(57	)	 	 	—  	 	 	 	664	
 	  			  				 				 				 			
Total revenues	  	 	11,057	  	 	(214	)	 	 	(608	)	 	 	—  	 	 	 	10,235	
 	  			  				 				 				 			
Benefits and expenses:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	4,804	  	 	(71	)	 	 	(393	)	 	 	—  	 	 	 	4,340	
Interest credited	  	 	1,432	  	 	—  	 	 	 	(113	)	 	 	—  	 	 	 	1,319	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	1,812	  	 	(117	)	 	 	(38	)	 	 	—  	 	 	 	1,657	
Amortization of deferred acquisition costs and intangibles	  	 	1,154	  	 	(46	)	 	 	(56	)	 	 	—  	 	 	 	1,052	
Interest expense	  	 	217	  	 	—  	 	 	 	—  	 	 	 	26	 	 	 	243	
 	  			  				 				 				 			
Total benefits and expenses	  	 	9,419	  	 	(234	)	 	 	(600	)	 	 	26	 	 	 	8,611	
 	  			  				 				 				 			
Earnings from continuing operations before income taxes	  	 	1,638	  	 	20	 	 	 	(8	)	 	 	(26	)	 	 	1,624	
Provision for income taxes	  	 	493	  	 	13	 	 	 	(4	)	 	 	(8	)	 	 	494	
 	  			  				 				 				 			
Net earnings from continuing operations	  	$	1,145	  	$	7	 	 	$	(4	)	 	$	(18	)	 	$	1,130	

																			
 	  	Twelve months ended December 31, 2003
	
(Dollar amounts in millions)	  	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
	
 	  	(Unaudited)	
Revenues:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	  	$	6,707	  	$	(244	)	 	$	(207	)	 	$	—  	 	 	$	6,256	
Net investment income	  	 	4,051	  	 	(70	)	 	 	(1,017	)	 	 	—  	 	 	 	2,964	
Net realized investment gains	  	 	10	  	 	6	 	 	 	22	 	 	 	—  	 	 	 	38	
Policy fees and other income	  	 	915	  	 	(260	)	 	 	(126	)	 	 	—  	 	 	 	529	
 	  			  				 				 				 			
Total revenues	  	 	11,683	  	 	(568	)	 	 	(1,328	)	 	 	—  	 	 	 	9,787	
 	  			  				 				 				 			
Benefits and expenses:	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	5,270	  	 	(196	)	 	 	(845	)	 	 	—  	 	 	 	4,229	
Interest credited	  	 	1,624	  	 	—  	 	 	 	(266	)	 	 	—  	 	 	 	1,358	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	1,916	  	 	(248	)	 	 	(85	)	 	 	—  	 	 	 	1,583	
Amortization of deferred acquisition costs and intangibles	  	 	1,351	  	 	(105	)	 	 	(97	)	 	 	—  	 	 	 	1,149	
Interest expense	  	 	140	  	 	—  	 	 	 	—  	 	 	 	65	 	 	 	205	
 	  			  				 				 				 			
Total benefits and expenses	  	 	10,301	  	 	(549	)	 	 	(1,293	)	 	 	65	 	 	 	8,524	
 	  			  				 				 				 			
Earnings from continuing operations before income taxes	  	 	1,382	  	 	(19	)	 	 	(35	)	 	 	(65	)	 	 	1,263	
Provision for income taxes	  	 	413	  	 	(4	)	 	 	(15	)	 	 	(23	)	 	 	371	
 	  			  				 				 				 			
Net earnings from continuing operations	  	$	969	  	$	(15	)	 	$	(20	)	 	$	(42	)	 	$	892	

Note:	For a discussion of notes (a), (b), and (c) to these tables see Notes to Pro Forma Financial Information and Reconciliation Tables.	
 
13

RECONCILIATION OF COMPANY NET EARNINGS TO PRO FORMA NET OPERATING EARNINGS

 	  	Three months ended
December 31,
	 	 	Twelve months ended
December 31,
	 	
(Amounts in millions, except per share data)	  	2004
	 	 	2003
	 	 	2004
	 	 	2003
	 	
 	  	(Unaudited)	 	
Net earnings	  	$	346	 	 	$	213	 	 	$	1,157	 	 	$	1,081	 	
Net earnings from discontinued operations, net of taxes	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(186	)	
(Gain) loss on sale of discontinued operations, net of taxes	  	 	—  	 	 	 	7	 	 	 	(7	)	 	 	74	 	
Cumulative effect of accounting change, net of taxes	  	 	—  	 	 	 	—  	 	 	 	(5	)	 	 	—  	 	
 	  				 				 				 				
Net earnings from continuing operations	  	 	346	 	 	 	220	 	 	 	1,145	 	 	 	969	 	
 	  				 				 				 				
Excluded assets and liabilities (a)	  	 	—  	 	 	 	(3	)	 	 	7	 	 	 	(15	)	
Reinsurance transactions (b)	  	 	—  	 	 	 	4	 	 	 	(4	)	 	 	(20	)	
Capital structure and other (c)	  	 	—  	 	 	 	(10	)	 	 	(18	)	 	 	(42	)	
 	  				 				 				 				
Pro forma net earnings from continuing operations	  	 	346	 	 	 	211	 	 	 	1,130	 	 	 	892	 	
 	  				 				 				 				
Pro forma net realized (gains) losses on investments, net of taxes	  	 	1	 	 	 	(32	)	 	 	(15	)	 	 	(25	)	
Net tax benefit related to initial public offering	  	 	(68	)	 	 	—  	 	 	 	(46	)	 	 	—  	 	
Gain on outsourcing services agreement, net of taxes	  	 	(25	)	 	 	—  	 	 	 	(25	)	 	 	—  	 	
 	  				 				 				 				
Pro forma net operating earnings	  	$	254	 	 	$	179	 	 	$	1,044	 	 	$	867	 	
 	  				 				 				 				
Net earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.71	 	 	$	0.44	 	 	$	2.36	 	 	$	2.21	 	
 	  				 				 				 				
Diluted	  	$	0.70	 	 	$	0.44	 	 	$	2.36	 	 	$	2.21	 	
 	  				 				 				 				
Net earnings from continuing operations per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.71	 	 	$	0.45	 	 	$	2.34	 	 	$	1.98	 	
 	  				 				 				 				
Diluted	  	$	0.70	 	 	$	0.45	 	 	$	2.33	 	 	$	1.98	 	
 	  				 				 				 				
Pro forma net earnings from continuing operations per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.71	 	 	$	0.43	 	 	$	2.31	 	 	$	1.82	 	
 	  				 				 				 				
Diluted	  	$	0.70	 	 	$	0.43	 	 	$	2.30	 	 	$	1.82	 	
 	  				 				 				 				
Pro forma net operating earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.52	 	 	$	0.37	 	 	$	2.13	 	 	$	1.77	 	
 	  				 				 				 				
Diluted	  	$	0.52	 	 	$	0.37	 	 	$	2.13	 	 	$	1.77	 	
 	  				 				 				 				
Shares outstanding	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	 	489.6	 	 	 	489.5	 	 	 	489.5	 	 	 	489.5	 	
Diluted	  	 	492.4	 	 	 	489.5	 	 	 	490.5	 	 	 	489.5	 	
 
14

RECONCILIATION OF CORPORATE AND OTHER SEGMENT NET EARNINGS (LOSS) TO PRO FORMA NET OPERATING LOSS

 	  	Three months ended
December 31,
	 	 	Twelve months ended
December 31,
	 	
(Dollar amounts in millions)	  	2004
	 	 	2003
	 	 	2004
	 	 	2003
	 	
 	  	(Unaudited)	 	
Segment net earnings (loss)	  	$	64	 	 	$	24	 	 	$	52	 	 	$	(54	)	
Excluded assets and liabilities (a)	  	 	—  	 	 	 	(3	)	 	 	(5	)	 	 	(2	)	
Reinsurance transactions (b)	  	 	—  	 	 	 	15	 	 	 	—  	 	 	 	47	 	
Capital structure and other (c)	  	 	—  	 	 	 	(10	)	 	 	(18	)	 	 	(42	)	
 	  				 				 				 				
Pro forma segment net earnings (loss)	  	 	64	 	 	 	26	 	 	 	29	 	 	 	(51	)	
 	  				 				 				 				
Pro forma net realized (gains) losses on investments, net of taxes	  	 	1	 	 	 	(32	)	 	 	(15	)	 	 	(25	)	
Net tax benefit related to initial public offering	  	 	(68	)	 	 	—  	 	 	 	(46	)	 	 	—  	 	
Gain on outsourcing services agreement, net of taxes	  	 	(25	)	 	 	—  	 	 	 	(25	)	 	 	—  	 	
 	  				 				 				 				
Pro forma net operating loss	  	$	(28	)	 	$	(6	)	 	$	(57	)	 	$	(76	)	

15

RECONCILIATION OF OPERATING ROE

(Amounts in millions, except ROE)	  	 	 	 	 	
GAAP Basis	  	 	 	 	 	 	
Total stockholders’ equity as of December 31, 2004	  	 	 	 	$	12,866	
Less accumulated nonowner changes in stockholders’ equity (AOCI) as of December 31, 2004	  	 	 	 	 	1,609	
 	  	 	 	 			
Total stockholders’ equity, excluding AOCI as of December 31, 2004	  	(I	)	 	 	11,257	
 	  	 	 	 			
Total stockholders’ equity as of December 31, 2003	  	 	 	 	 	15,800	
AOCI as of December 31, 2003	  	 	 	 	 	1,672	
 	  	 	 	 			
Total stockholders’ equity, excluding AOCI as of December 31, 2003	  	(II	)	 	 	14,128	
 	  	 	 	 			
Total (I) + (II)	  	 	 	 	 	25,385	
 	  	 	 	 	 	÷2	
 	  	 	 	 			
Average stockholders’ equity, excluding AOCI	  	 	 	 	$	12,693	
 	  	 	 	 			
2004 net earnings	  	 	 	 	$	1,157	
 	  	 	 	 			
ROE (net earnings divided by average stockholders’ equity, excluding AOCI)	  	 	 	 	 	9.1%	

GAAP Basis, As Adjusted - Operating ROE	  	 	 	
Total stockholders’ equity, excluding AOCI as of December 31, 2004	  	$	11,257	
Adjusted stockholders’ equity, excluding AOCI as of December 31, 2003 (see table below for reconciliation)	  	 	9,956	
 	  			
Total	  	 	21,213	
 	  	 	÷2	
 	  			
Average adjusted stockholders’ equity, excluding AOCI	  	$	10,607	
 	  			
2004 pro forma net operating earnings (see page 14 for reconciliation)	  	$	1,044	
 	  			
Operating ROE (pro forma net operating earnings divided by average adjusted stockholders’ equity, excluding AOCI)	  	 	9.8%	
 
RECONCILIATION OF COMPANY TOTAL STOCKHOLDERS’ EQUITY, EXCLUDING AOCI

(Amounts in millions)	  	As of
December 31,
2003
	 	
Total stockholders’ equity	  	$	15,800	 	
		
AOCI	  	 	1,672	 	
 	  				
Total stockholders’ equity, excluding AOCI	  	 	14,128	 	
		
Excluded assets and liabilities (a)	  	 	673	 	
		
Reinsurance transactions (b)	  	 	(1,434	)	
		
Capital structure and other (c)	  	 	(3,411	)	
 	  				
Adjusted stockholders’ equity, excluding AOCI	  	$	9,956	 	

Note:	For a discussion of notes (a), (b), and (c) to these tables see Notes to Pro Forma Financial Information and Reconciliation Tables.	
 
16

Notes to Pro Forma Financial Information and Reconciliation Tables
 
(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.
 
In addition, related to the statement of financial position as of December 31, 2003, reflects adjustments to exclude $1,691 million of commercial paper and all related impacts of derivative contracts hedging the commercial paper cash flows, $548 million of short-term borrowings from GE Capital and intercompany balances that were not transferred to the company.
 
(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 for 2003 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 unaudited pro forma earnings information for 2004 gives effect to the reinsurance transactions as if each had occurred as of January 1, 2004 and excludes the effects of all ceded reinsured contracts that were issued before January 1, 2004. The adjusted stockholders’ equity information gives effect to the reinsurance transactions as if each had occurred as of December 31, 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 (in the case of pro forma information for 2003), even though variable annuities and structured settlements issued during such year are included in the blocks of policies reinsured to UFLIC. The company’s pro forma combined statements of earnings for the years ended December 31, 2003 and 2004 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 or 2004, 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% mandatory 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.
 
17

In addition, adjusted stockholders’ equity as of December 31, 2003 reflects adjustments to include $550 million Contingent Note issued to GEFAHI, the company’s first-year cost of stock option and stock appreciation rights to management and employees and cost relating to conversion of certain existing stock-based compensation awards, and the company’s obligation to GE and other effects under the Tax Matters Agreement, as well as to reflect capital contributions received from GE and dividends paid to GE in 2004.
 
18

 
					
 	 	FOURTH QUARTER	 	 	
 	 	FINANCIAL SUPPLEMENT	 	 	
			
 	 	DECEMBER 31, 2004	 	 	

			
Table of Contents
	  	Page
	
Letter to Investor/Analyst	  	3	
Presentation of Financial Information	  	4 & 5	
Financial Highlights	  	6	
Reconciliation to Pro Forma Net Operating Earnings	  	7	
Notes to Pro Forma Financial Information	  	8	
		
Historical Highlights	  	 	
QTD Historical Financial Highlights	  	10	
YTD Historical Financial Highlights	  	11	
QTD Historical Combined Earnings From Continuing Operations	  	12	
YTD Historical Combined Earnings From Continuing Operations	  	13	
Combined Statement of Financial Position	  	14	
		
Pro Forma Highlights	  	 	
QTD Pro Forma Financial Highlights	  	16	
YTD Pro Forma Financial Highlights	  	17	
QTD Pro Forma Earnings From Continuing Operations	  	18	
YTD Pro Forma Earnings From Continuing Operations	  	19	
		
Pro Forma Information	  	 	
Pro Forma Operating Results	  	 	
QTD Pro Forma Statement of Earnings by Segment	  	22	
YTD Pro Forma Statement of Earnings by Segment	  	23	
		
Pro Forma By Segment	  	 	
QTD Pro Forma Segment Net Earnings—Protection	  	24	
YTD Pro Forma Segment Net Earnings—Protection	  	25	
QTD Pro Forma Segment Net Earnings—Retirement Income and Investments	  	26	
YTD Pro Forma Segment Net Earnings—Retirement Income and Investments	  	27	
QTD Pro Forma Segment Net Earnings—Mortgage Insurance	  	28	
YTD Pro Forma Segment Net Earnings—Mortgage Insurance	  	29	
Selected Key Performance Measures—Mortgage Insurance	  	30 & 31	
QTD Pro Forma Segment Net Earnings—Corporate and Other	  	32	
YTD Pro Forma Segment Net Earnings—Corporate and Other	  	33	
		
Pro Forma Earnings Trends	  	 	
Pro Forma Net Earnings	  	34	
Pro Forma Segment Net Earnings—Protection	  	35	
Pro Forma Segment Net Earnings—Retirement Income and Investments	  	36	
Pro Forma Segment Net Earnings—Mortgage Insurance	  	37	
Pro Forma Segment Net Earnings—Corporate and Other	  	38	
		
Historical Information	  	 	
Historical Combined Operating Results	  	 	
QTD Historical Combined Statement of Earnings by Segment	  	40	
YTD Historical Combined Statement of Earnings by Segment	  	41	
		
Historical By Segment	  	 	
QTD Historical Segment Net Earnings—Protection	  	42	
YTD Historical Segment Net Earnings—Protection	  	43	
QTD Historical Segment Net Earnings—Retirement Income and Investments	  	44	
YTD Historical Segment Net Earnings—Retirement Income and Investments	  	45	
Account Values—Retirement Income and Investments	  	46	
Historical Account Values by Contract Type—Retirement Income and Investments	  	47	
QTD Historical Segment Net Earnings—Mortgage Insurance	  	48	
YTD Historical Segment Net Earnings—Mortgage Insurance	  	49	

			
Table of Contents
	  	Page
	
QTD Historical Segment Net Earnings—Corporate and Other	  	50	
YTD Historical Segment Net Earnings—Corporate and Other	  	51	
		
Historical Earnings Trends	  	 	
Historical Combined Net Earnings	  	52	
Historical Segment Net Earnings—Protection	  	53	
Historical Segment Net Earnings—Retirement Income and Investments	  	54	
Historical Segment Net Earnings—Mortgage Insurance	  	55	
Historical Segment Net Earnings—Corporate and Other	  	56	
Historical Segment Net Earnings—Affinity	  	57	
		
Statistical Data	  	 	
Deferred Acquisition Costs	  	60	
Investments Summary	  	61	
Fixed Maturity Summary	  	62	
Commercial Mortgage Loan Data	  	63	
Historical Segment Sales	  	64	
		
Corporate Information	  	68 & 69	
 
2

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Dear Investor/Analyst,
 
In conjunction with the release of Genworth's year-end financial results for 2004, we have prepared this financial supplement to assist investors in understanding Genworth’s financial results.
 
This supplement contains both historical and pro forma earnings and other financial information. The pro forma financial information reflects the effect of the company’s corporate reorganization and the other transactions effected in connection with our initial public offering, completed May 28, 2004. As we explained in advance of our strategic update with investors on December 15, 2004, the 2004 pro forma financial information included in this supplement assumes that those transactions had occurred on January 1, 2004. The 2003 pro forma financial information was previously published in our registration statement filed with the Securities and Exchange Commission on June 9, 2004 and is prepared assuming those transactions had occurred on January 1, 2003.
 
Additional detail on the basis of presentation of historical and pro forma financial information is provided on page 3 of this supplement.
 
Please feel free to 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
 
3

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Basis of Historical and Pro Forma 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. 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 for 2003 contained in this report was previously published in the prospectuses for the company's initial public offering and related offerings and 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 unaudited pro forma financial information for 2004 contained in this report reflects the company's historical combined financial information as adjusted to give effect to these transactions as if each had occurred as of January 1, 2004. The following transactions are reflected in the unaudited pro forma financial information:
 
 	•	 	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.	
 
If the unaudited pro forma financial information for 2004 had been adjusted to give effect to these transactions as if each had occurred as of January 1, 2003, rather than January 1, 2004, then full year pro forma revenues would have been approximately $90 million higher, pro forma benefits and expenses would have been approximately $77 million higher and pro forma net earnings from continuing operations would have been approximately $8 million higher.
 
4

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
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.
 
Certain prior period amounts have been reclassified to conform with the current period presentation.
 
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 IPO related net tax charge recorded during the second quarter of 2004, a $68 million IPO related net tax benefit recorded during the fourth quarter of 2004 and a $25 million after-tax gain related to our waiver of contractual rights under an outsourcing services agreement with GE's global business processing operation, 60% of which was sold in the fourth quarter of 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 7 of this report provides a reconciliation of 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 16 and 17 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.”
 
Definition of Sales
 
The term “sales” as used in this financial supplement means (1) annualized first-year premiums for term life insurance, long-term care insurance, and group life and health insurance; (2) new premiums/deposits for universal life insurance, spread-based and variable products; (3) new deposits for managed assets (4) written premiums gross of reinsurance and cancellations for payment protection insurance; and (5) new insurance written for mortgage insurance, which in each case reflects the amount of business the company generated during each period presented. Sales do not include renewal premiums on policies or contracts written during prior periods.
 
The company considers annualized first-year premiums, written premiums, deposits and new insurance written 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. This operating measure enables 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
4Q 2004 FINANCIAL SUPPLEMENT
 
Financial Highlights
(Dollar amounts in millions, except per share data)

Historical Combined Balance Sheet Data
	  	December 31, 2004
	
Total stockholders' equity, excluding accumulated nonowner changes in stockholders' equity	  	$	11,257	
Total accumulated nonowner changes in stockholders' equity	  	 	1,609	
 	  			
Total stockholders' equity	  	$	12,866	
 	  			
Book value per share	  	$	26.28	
Book value per share, excluding accumulated nonowner changes in stockholders' equity	  	$	22.99	

 
Stockholders' equity refers to stockholders' interest in the Combined Statement of Financial Position
 
6

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Reconciliation to Pro Forma Net Operating Earnings
(Amounts in millions, except per share data)

Reconciliation of net earnings to pro forma net operating earnings
	  	Three months ended
December 31,
	 	 	Twelve months ended
December 31,
	 	
 	  	2004
	 	 	2003
	 	 	2004
	 	 	2003
	 	
Net earnings	  	$	346	 	 	$	213	 	 	$	1,157	 	 	$	1,081	 	
Net earnings from discontinued operations, net of taxes	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(186	)	
(Gain) loss on sale of discontinued operations, net of taxes	  	 	—  	 	 	 	7	 	 	 	(7	)	 	 	74	 	
Cumulative effect of accounting change, net of taxes	  	 	—  	 	 	 	—  	 	 	 	(5	)	 	 	—  	 	
 	  				 				 				 				
Net earnings from continuing operations	  	 	346	 	 	 	220	 	 	 	1,145	 	 	 	969	 	
 	  				 				 				 				
Excluded assets and liabilities (a)	  	 	—  	 	 	 	(3	)	 	 	7	 	 	 	(15	)	
Reinsurance transactions (b)	  	 	—  	 	 	 	4	 	 	 	(4	)	 	 	(20	)	
Capital structure and other (c)	  	 	—  	 	 	 	(10	)	 	 	(18	)	 	 	(42	)	
 	  				 				 				 				
Pro forma net earnings from continuing operations	  	 	346	 	 	 	211	 	 	 	1,130	 	 	 	892	 	
 	  				 				 				 				
Pro forma net realized (gains) losses on investments, net of taxes	  	 	1	 	 	 	(32	)	 	 	(15	)	 	 	(25	)	
Net tax benefit related to initial public offering	  	 	(68	)	 	 	—  	 	 	 	(46	)	 	 	—  	 	
Gain on outsourcing services agreement, net of taxes	  	 	(25	)	 	 	—  	 	 	 	(25	)	 	 	—  	 	
 	  				 				 				 				
Pro forma net operating earnings	  	$	254	 	 	$	179	 	 	$	1,044	 	 	$	867	 	
 	  				 				 				 				
Net earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.71	 	 	$	0.44	 	 	$	2.36	 	 	$	2.21	 	
 	  				 				 				 				
Diluted	  	$	0.70	 	 	$	0.44	 	 	$	2.36	 	 	$	2.21	 	
 	  				 				 				 				
Net earnings from continuing operations per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.71	 	 	$	0.45	 	 	$	2.34	 	 	$	1.98	 	
 	  				 				 				 				
Diluted	  	$	0.70	 	 	$	0.45	 	 	$	2.33	 	 	$	1.98	 	
 	  				 				 				 				
Pro forma net earnings from continuing operations per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.71	 	 	$	0.43	 	 	$	2.31	 	 	$	1.82	 	
 	  				 				 				 				
Diluted	  	$	0.70	 	 	$	0.43	 	 	$	2.30	 	 	$	1.82	 	
 	  				 				 				 				
Pro forma net operating earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.52	 	 	$	0.37	 	 	$	2.13	 	 	$	1.77	 	
 	  				 				 				 				
Diluted	  	$	0.52	 	 	$	0.37	 	 	$	2.13	 	 	$	1.77	 	
 	  				 				 				 				
Shares outstanding	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	 	489.6	 	 	 	489.5	 	 	 	489.5	 	 	 	489.5	 	
Diluted	  	 	492.4	 	 	 	489.5	 	 	 	490.5	 	 	 	489.5	 	

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

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Notes to 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 for 2003 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 unaudited pro forma earnings information for 2004 gives effect to the reinsurance transactions as if each had occurred as of January 1, 2004 and excludes the effects of all ceded reinsured contracts that were issued before January 1, 2004. 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 (in the case of pro forma information for 2003), even though variable annuities and structured settlements issued during such year are included in the blocks of policies reinsured to UFLIC. The company’s pro forma combined statements of earnings for the years ended December 31, 2003 and 2004 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 or 2004, 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% mandatory 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.	
 
8

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT

 

 

 

 

 
HISTORICAL HIGHLIGHTS
 
9

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Financial Highlights
(Amounts in millions, except per share data)

 	  	Three months ended December 31,
	 	
HISTORICAL COMBINED EARNINGS BY SEGMENT
	  	2004
	 	 	2003
	 	
Earnings (loss) from continuing operations before income taxes	  	 	 	 	 	 	 	 	
Protection	  	$	218	 	 	$	156	 	
Retirement Income & Investments	  	 	54	 	 	 	38	 	
Mortgage Insurance	  	 	151	 	 	 	131	 	
Corporate and Other	  	 	(8	)	 	 	(12	)	
Affinity	  	 	—  	 	 	 	(2	)	
 	  				 				
Total	  	$	415	 	 	$	311	 	
 	  				 				
Net earnings (loss) from continuing operations	  	 	 	 	 	 	 	 	
Protection	  	$	140	 	 	$	95	 	
Retirement Income and Investments	  	 	35	 	 	 	23	 	
Mortgage Insurance	  	 	107	 	 	 	77	 	
Corporate and Other	  	 	64	 	 	 	24	 	
Affinity	  	 	—  	 	 	 	1	 	
 	  				 				
Total	  	 	346	 	 	 	220	 	
 	  				 				
Net earnings from discontinued operations, net of taxes	  	 	—  	 	 	 	—  	 	
Gain (loss) on sale of discontinued operations, net of taxes	  	 	—  	 	 	 	(7	)	
Cumulative effect of accounting changes, net of taxes	  	 	—  	 	 	 	—  	 	
 	  				 				
Net Earnings	  	$	346	 	 	$	213	 	

 	  	Three months ended December 31,
	 	
EARNINGS PER SHARE
	  	2004
	 	 	2003
	 	
Basic EPS	  	 	 	 	 	 	 	 	
Net earnings from continuing operations	  	$	0.71	 	 	$	0.45	 	
Net earnings from discontinued operations, net of taxes	  	 	—  	 	 	 	—  	 	
Gain on sale of discontinued operations, net of taxes	  	 	—  	 	 	 	(0.01	)	
Cumulative effect of accounting changes, net of taxes	  	 	—  	 	 	 	—  	 	
 	  				 				
Basic earnings per share	  	$	0.71	 	 	$	0.44	 	
 	  				 				
Diluted EPS	  	 	 	 	 	 	 	 	
Net earnings from continuing operations	  	$	0.70	 	 	$	0.45	 	
Net earnings from discontinued operations, net of taxes	  	 	—  	 	 	 	—  	 	
Gain on sale of discontinued operations, net of taxes	  	 	—  	 	 	 	(0.01	)	
Cumulative effect of accounting changes, net of taxes	  	 	—  	 	 	 	—  	 	
 	  				 				
Diluted earnings per share	  	$	0.70	 	 	$	0.44	 	
 	  				 				
Shares outstanding (millions)	  	 	 	 	 	 	 	 	
Basic	  	 	489.6	 	 	 	489.5	 	
Diluted	  	 	492.4	 	 	 	489.5	 	
 
10

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Financial Highlights
(Amounts in millions, except per share data)

 	  	Twelve months ended December 31,
	 	
HISTORICAL COMBINED EARNINGS BY SEGMENT
	  	2004
	 	 	2003
	 	
Earnings (loss) from continuing operations before income taxes	  	 	 	 	 	 	 	 	
Protection	  	$	834	 	 	$	758	 	
Retirement Income & Investments	  	 	237	 	 	 	229	 	
Mortgage Insurance	  	 	612	 	 	 	531	 	
Corporate and Other	  	 	(13	)	 	 	(157	)	
Affinity	  	 	(32	)	 	 	21	 	
 	  				 				
Total	  	$	1,638	 	 	$	1,382	 	
 	  				 				
Net earnings (loss) from continuing operations	  	 	 	 	 	 	 	 	
Protection	  	$	528	 	 	$	487	 	
Retirement Income and Investments	  	 	153	 	 	 	151	 	
Mortgage Insurance	  	 	426	 	 	 	369	 	
Corporate and Other	  	 	52	 	 	 	(54	)	
Affinity	  	 	(14	)	 	 	16	 	
 	  				 				
Total	  	 	1,145	 	 	 	969	 	
 	  				 				
Net earnings from discontinued operations, net of taxes	  	 	—  	 	 	 	186	 	
Gain (loss) on sale of discontinued operations, net of taxes	  	 	7	 	 	 	(74	)	
Cumulative effect of accounting changes, net of taxes	  	 	5	 	 	 	—  	 	
 	  				 				
Net Earnings	  	$	1,157	 	 	$	1,081	 	

 	  	Twelve months ended December 31,
	 	
EARNINGS PER SHARE
	  	2004
	 	 	2003
	 	
Basic EPS	  	 	 	 	 	 	 	 	
Net earnings from continuing operations	  	$	2.34	 	 	$	1.98	 	
Net earnings from discontinued operations, net of taxes	  	 	—  	 	 	 	0.38	 	
Gain on sale of discontinued operations, net of taxes	  	 	0.01	 	 	 	(0.15	)	
Cumulative effect of accounting changes, net of taxes	  	 	0.01	 	 	 	—  	 	
 	  				 				
Basic earnings per share	  	$	2.36	 	 	$	2.21	 	
 	  				 				
Diluted EPS	  	 	 	 	 	 	 	 	
Net earnings from continuing operations	  	$	2.33	 	 	$	1.98	 	
Net earnings from discontinued operations, net of taxes	  	 	—  	 	 	 	0.38	 	
Gain on sale of discontinued operations, net of taxes	  	 	0.01	 	 	 	(0.15	)	
Cumulative effect of accounting changes, net of taxes	  	 	0.01	 	 	 	—  	 	
 	  				 				
Diluted earnings per share	  	$	2.36	 	 	$	2.21	 	
 	  				 				
Shares outstanding (millions)	  	 	 	 	 	 	 	 	
Basic	  	 	489.5	 	 	 	489.5	 	
Diluted	  	 	490.5	 	 	 	489.5	 	
 
11

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Combined Earnings From Continuing Operations
(Dollar amounts in millions)

 	  	Three months ended December 31,
	 	
 	  	    2004    
	 	 	    2003    
	 	
REVENUES:	  	 	 	 	 	 	 	 	
Premiums	  	$	1,606	 	 	$	1,766	 	
Net investment income	  	 	825	 	 	 	1,031	 	
Net realized investment gains (losses)	  	 	(1	)	 	 	39	 	
Policy fees and other income	  	 	212	 	 	 	230	 	
 	  				 				
Total revenues	  	 	2,642	 	 	 	3,066	 	
 	  				 				
BENEFITS AND EXPENSES:	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,129	 	 	 	1,464	 	
Interest credited	  	 	344	 	 	 	402	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	429	 	 	 	427	 	
Amortization of deferred acquisition costs and intangibles	  	 	262	 	 	 	416	 	
Interest expense	  	 	63	 	 	 	46	 	
 	  				 				
Total benefits and expenses	  	 	2,227	 	 	 	2,755	 	
 	  				 				
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	415	 	 	 	311	 	
Provision for income taxes	  	 	69	 	 	 	91	 	
Effective tax rate	  	 	17	%	 	 	29	%	
 	  				 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	346	 	 	$	220	 	

12

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Combined Earnings From Continuing Operations
(Dollar amounts in millions)

 	  	Twelve months ended December 31,
	 	
 	  	    2004    
	 	 	    2003    
	 	
REVENUES:	  	 	 	 	 	 	 	 	
Premiums	  	$	6,559	 	 	$	6,707	 	
Net investment income	  	 	3,648	 	 	 	4,051	 	
Net realized investment gains	  	 	26	 	 	 	10	 	
Policy fees and other income	  	 	824	 	 	 	915	 	
 	  				 				
Total revenues	  	 	11,057	 	 	 	11,683	 	
 	  				 				
BENEFITS AND EXPENSES:	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	4,804	 	 	 	5,270	 	
Interest credited	  	 	1,432	 	 	 	1,624	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	1,812	 	 	 	1,916	 	
Amortization of deferred acquisition costs and intangibles	  	 	1,154	 	 	 	1,351	 	
Interest expense	  	 	217	 	 	 	140	 	
 	  				 				
Total benefits and expenses	  	 	9,419	 	 	 	10,301	 	
 	  				 				
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	1,638	 	 	 	1,382	 	
Provision for income taxes	  	 	493	 	 	 	413	 	
Effective tax rate	  	 	30	%	 	 	30	%	
 	  				 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	1,145	 	 	$	969	 	

13

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Combined Statement of Financial Position
(Dollar amounts in millions)

 	  	December 31, 2004
	  	December 31, 2003
	 	
ASSETS	  	 	 	  	 	 	 	
Investments:	  	 	 	  	 	 	 	
Fixed maturities available-for-sale, at fair value	  	$	52,424	  	$	65,485	 	
Equity securities available-for-sale, at fair value	  	 	374	  	 	600	 	
Mortgage and other loans, net of valuation allowance of $52 and $50	  	 	6,051	  	 	6,114	 	
Policy loans	  	 	1,224	  	 	1,105	 	
Short term investments	  	 	818	  	 	531	 	
Restricted investments held by securitization entities	  	 	860	  	 	1,069	 	
Other invested assets	  	 	3,996	  	 	3,789	 	
 	  			  				
Total investments	  	 	65,747	  	 	78,693	 	
Cash and cash equivalents	  	 	1,392	  	 	1,982	 	
Accrued investment income	  	 	733	  	 	970	 	
Deferred acquisition costs	  	 	5,020	  	 	5,788	 	
Intangible assets	  	 	780	  	 	1,346	 	
Goodwill	  	 	1,465	  	 	1,728	 	
Reinsurance recoverable	  	 	18,535	  	 	2,334	 	
Other assets ($24 and $65 restricted in securitization entities)	  	 	1,322	  	 	2,346	 	
Separate account assets	  	 	8,884	  	 	8,244	 	
 	  			  				
Total assets	  	$	103,878	  	$	103,431	 	
 	  			  				
LIABILITIES AND STOCKHOLDERS' INTEREST	  	 	 	  	 	 	 	
Liabilities:	  	 	 	  	 	 	 	
Future annuity and contract benefits	  	$	61,698	  	$	59,257	 	
Liability for policy and contract claims	  	 	3,329	  	 	3,207	 	
Unearned premiums	  	 	3,597	  	 	3,616	 	
Other policyholder liabilities	  	 	638	  	 	465	 	
Other liabilities ($3 and $59 restricted in securitization entities)	  	 	7,167	  	 	7,051	 	
Non-recourse funding obligations	  	 	900	  	 	600	 	
Short-term borrowings	  	 	499	  	 	2,239	 	
Long-term borrowings	  	 	2,442	  	 	529	 	
Senior notes underlying equity units	  	 	600	  	 	—  	 	
Preferred stock	  	 	100	  	 	—  	 	
Deferred tax liability	  	 	309	  	 	1,405	 	
Borrowings related to securitization entities	  	 	849	  	 	1,018	 	
Separate account liabilities	  	 	8,884	  	 	8,244	 	
 	  			  				
Total liabilities	  	 	91,012	  	 	87,631	 	
Stockholders' interest:	  	 	 	  	 	 	 	
Common stock	  	 	—  	  	 	—  	 	
Paid-in capital	  	 	10,612	  	 	8,377	 	
Accumulated nonowner changes in stockholders' interest:	  	 	 	  	 	 	 	
Net unrealized investment gains	  	 	1,019	  	 	1,518	 	
Derivatives qualifying as hedges	  	 	268	  	 	(5	)	
Foreign currency translation adjustments	  	 	322	  	 	159	 	
 	  			  				
Total accumulated nonowner changes in stockholders' interest	  	 	1,609	  	 	1,672	 	
Retained earnings	  	 	645	  	 	5,751	 	
 	  			  				
Total stockholders' interest	  	 	12,866	  	 	15,800	 	
 	  			  				
Total liabilities and stockholders' interest	  	$	103,878	  	$	103,431	 	

14

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT

 

 

 

 

 
PRO FORMA HIGHLIGHTS
 
15

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Financial Highlights
(Amounts in millions, except per share data)

 	  	Three months ended December 31,
	 	
PRO FORMA EARNINGS BY SEGMENT
	  	2004
	 	 	2003
	 	
Earnings (loss) from continuing operations before income taxes	  	 	 	 	 	 	 	 	
Protection	  	$	218	 	 	$	158	 	
Retirement Income & Investments	  	 	54	 	 	 	21	 	
Mortgage Insurance	  	 	151	 	 	 	131	 	
Corporate and Other	  	 	(8	)	 	 	(10	)	
 	  				 				
Total	  	$	415	 	 	$	300	 	
 	  				 				
Net earnings (loss) from continuing operations	  	 	 	 	 	 	 	 	
Protection	  	$	140	 	 	$	96	 	
Retirement Income and Investments	  	 	35	 	 	 	12	 	
Mortgage Insurance	  	 	107	 	 	 	77	 	
Corporate and Other	  	 	64	 	 	 	26	 	
 	  				 				
Total	  	$	346	 	 	$	211	 	
 	  				 				
Net operating earnings (loss)	  	 	 	 	 	 	 	 	
Protection	  	$	140	 	 	$	96	 	
Retirement Income and Investments	  	 	35	 	 	 	12	 	
Mortgage Insurance	  	 	107	 	 	 	77	 	
Corporate and Other (see reconciliation below)	  	 	(28	)	 	 	(6	)	
 	  				 				
Total	  	$	254	 	 	$	179	 	

 	  	As of or for the three months
ended December 31,
	 	
PRO FORMA EARNINGS PER SHARE
	  	2004
	 	 	2003
	 	
Basic EPS	  	 	 	 	 	 	 	 	
Net earnings from continuing operations per share	  	$	0.71	 	 	$	0.43	 	
Net operating earnings per share	  	$	0.52	 	 	$	0.37	 	
Diluted EPS	  	 	 	 	 	 	 	 	
Net earnings from continuing operations per share	  	$	0.70	 	 	$	0.43	 	
Net operating earnings per share	  	$	0.52	 	 	$	0.37	 	
Shares outstanding (millions)	  	 	 	 	 	 	 	 	
Basic	  	 	489.6	 	 	 	489.5	 	
Diluted	  	 	492.4	 	 	 	489.5	 	
 
Reconciliation of Corporate and Other segment net earnings to pro forma net operating loss

 	  	Three months ended December 31,
	 	
 	  	    2004    
	 	 	    2003    
	 	
Segment net earnings	  	$	64	 	 	$	24	 	
Excluded assets and liabilities (a)	  	 	—  	 	 	 	(3	)	
Reinsurance transactions (b)	  	 	—  	 	 	 	15	 	
Capital structure and other (c)	  	 	—  	 	 	 	(10	)	
 	  				 				
Pro forma segment net earnings	  	 	64	 	 	 	26	 	
 	  				 				
Pro forma net realized (gains) losses on investments, net of taxes	  	 	1	 	 	 	(32	)	
Net tax benefit related to initial public offering	  	 	(68	)	 	 	—  	 	
Gain on outsourcing services agreement, net of taxes	  	 	(25	)	 	 	—  	 	
 	  				 				
Pro forma net operating loss	  	$	(28	)	 	$	(6	)	

Note:	For a discussion of notes (a), (b), and (c) to these tables see Notes To Pro Forma Financial Information on page 8.	
 
16

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Financial Highlights
(Amounts in millions, except per share data)

 	  	Twelve months ended December 31,
	 	
PRO FORMA EARNINGS BY SEGMENT
	  	    2004    
	 	 	    2003    
	 	
Earnings (loss) before income taxes	  	 	 	 	 	 	 	 	
Protection	  	$	832	 	 	$	751	 	
Retirement Income & Investments	  	 	230	 	 	 	141	 	
Mortgage Insurance	  	 	612	 	 	 	531	 	
Corporate and Other	  	 	(50	)	 	 	(160	)	
 	  				 				
Total earnings (loss) before income taxes	  	$	1,624	 	 	$	1,263	 	
 	  				 				
Segment net earnings (loss)	  	 	 	 	 	 	 	 	
Protection	  	$	527	 	 	$	481	 	
Retirement Income and Investments	  	 	148	 	 	 	93	 	
Mortgage Insurance	  	 	426	 	 	 	369	 	
Corporate and Other	  	 	29	 	 	 	(51	)	
 	  				 				
Total segment net earnings (loss)	  	$	1,130	 	 	$	892	 	
 	  				 				
Net operating earnings (loss)	  	 	 	 	 	 	 	 	
Protection	  	$	527	 	 	$	481	 	
Retirement Income and Investments	  	 	148	 	 	 	93	 	
Mortgage Insurance	  	 	426	 	 	 	369	 	
Corporate and Other (see reconciliation below)	  	 	(57	)	 	 	(76	)	
 	  				 				
Total	  	$	1,044	 	 	$	867	 	

 	  	As of or for the twelve months
ended December 31,
	 	
PRO FORMA EARNINGS PER SHARE
	  	    2004    
	 	 	    2003    
	 	
Basic EPS	  	 	 	 	 	 	 	 	
Net earnings from continuing operations per share	  	$	2.31	 	 	$	1.82	 	
Net operating earnings per share	  	$	2.13	 	 	$	1.77	 	
			
Diluted EPS	  	 	 	 	 	 	 	 	
Net earnings from continuing operations per share	  	$	2.30	 	 	$	1.82	 	
Net operating earnings per share	  	$	2.13	 	 	$	1.77	 	
			
Shares outstanding (millions)	  	 	 	 	 	 	 	 	
Basic	  	 	489.5	 	 	 	489.5	 	
Diluted	  	 	490.5	 	 	 	489.5	 	
 
Reconciliation of Corporate and Other segment net earnings (loss) to pro forma net operating loss

 	  	Twelve months ended December 31,
	 	
 	  	    2004    
	 	 	    2003    
	 	
Segment net earnings (loss )	  	$	52	 	 	$	(54	)	
Excluded assets and liabilities (a)	  	 	(5	)	 	 	(2	)	
Reinsurance transactions (b)	  	 	—  	 	 	 	47	 	
Capital structure and other (c)	  	 	(18	)	 	 	(42	)	
 	  				 				
Pro forma segment net earnings (loss)	  	 	29	 	 	 	(51	)	
 	  				 				
Pro forma net realized (gains) losses on investments, net of taxes	  	 	(15	)	 	 	(25	)	
Net tax benefit related to initial public offering	  	 	(46	)	 	 	—  	 	
Gain on outsourcing services agreement, net of taxes	  	 	(25	)	 	 	—  	 	
 	  				 				
Pro forma net operating loss	  	$	(57	)	 	$	(76	)	

Note:	For a discussion of notes (a), (b), and (c) to these tables see Notes To Pro Forma Financial Information on page 8.	
 
17

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Earnings From Continuing Operations
(Dollar amounts in millions)

 	  	Three months ended December 31,
	 	
 	  	    2004    
	 	 	    2003    
	 	
REVENUES:	  	 	 	 	 	 	 	 	
Premiums	  	$	1,606	 	 	$	1,651	 	
Net investment income	  	 	825	 	 	 	757	 	
Net realized investment gains (losses)	  	 	(1	)	 	 	49	 	
Policy fees and other income	  	 	212	 	 	 	134	 	
 	  				 				
Total revenues	  	 	2,642	 	 	 	2,591	 	
 	  				 				
BENEFITS AND EXPENSES:	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	1,129	 	 	 	1,184	 	
Interest credited	  	 	344	 	 	 	335	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	429	 	 	 	352	 	
Amortization of deferred acquisition costs and intangibles	  	 	262	 	 	 	359	 	
Interest expense	  	 	63	 	 	 	61	 	
 	  				 				
Total benefits and expenses	  	 	2,227	 	 	 	2,291	 	
 	  				 				
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	415	 	 	 	300	 	
Provision for income taxes	  	 	69	 	 	 	89	 	
Effective tax rate	  	 	17	%	 	 	30	%	
 	  				 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	346	 	 	$	211	 	

18

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Earnings From Continuing Operations
(Dollar amounts in millions)

 	  	Twelve months ended December 31,
	 	
 	  	    2004    
	 	 	    2003    
	 	
REVENUES:	  	 	 	 	 	 	 	 	
Premiums	  	$	6,388	 	 	$	6,256	 	
Net investment income	  	 	3,160	 	 	 	2,964	 	
Net realized investment gains	  	 	23	 	 	 	38	 	
Policy fees and other income	  	 	664	 	 	 	529	 	
 	  				 				
Total revenues	  	 	10,235	 	 	 	9,787	 	
 	  				 				
BENEFITS AND EXPENSES:	  	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	4,340	 	 	 	4,229	 	
Interest credited	  	 	1,319	 	 	 	1,358	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	1,657	 	 	 	1,583	 	
Amortization of deferred acquisition costs and intangibles	  	 	1,052	 	 	 	1,149	 	
Interest expense	  	 	243	 	 	 	205	 	
 	  				 				
Total benefits and expenses	  	 	8,611	 	 	 	8,524	 	
 	  				 				
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	  	 	1,624	 	 	 	1,263	 	
Provision for income taxes	  	 	494	 	 	 	371	 	
Effective tax rate	  	 	30	%	 	 	29	%	
 	  				 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	  	$	1,130	 	 	$	892	 	

19

 
 
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20

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT

 

 

 

 

 
ADDITIONAL
PRO FORMA INFORMATION
 
21

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Statement of Earnings by Segment
(Dollar amounts in millions)

Three months ended December 31, 2004
	 	Protection
Segment
	 	RI&I
Segment
	 	Mortgage
Segment
	 	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	1,094	 	$	277	 	$	213	 	$	22	 	 	$	1,606	 	
Net investment income	 	 	311	 	 	417	 	 	68	 	 	29	 	 	 	825	 	
Net realized investment losses	 	 	—  	 	 	—  	 	 	—  	 	 	(1	)	 	 	(1	)	
Policy fees and other income	 	 	102	 	 	58	 	 	8	 	 	44	 	 	 	212	 	
 	 			 			 			 				 				
Total revenues	 	 	1,507	 	 	752	 	 	289	 	 	94	 	 	 	2,642	 	
 	 			 			 			 				 				
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	705	 	 	363	 	 	53	 	 	8	 	 	 	1,129	 	
Interest credited	 	 	91	 	 	253	 	 	—  	 	 	—  	 	 	 	344	 	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	279	 	 	48	 	 	69	 	 	33	 	 	 	429	 	
Amortization of deferred acquisition costs and intangibles	 	 	208	 	 	34	 	 	16	 	 	4	 	 	 	262	 	
Interest expense	 	 	6	 	 	—  	 	 	—  	 	 	57	 	 	 	63	 	
 	 			 			 			 				 				
Total benefits and expenses	 	 	1,289	 	 	698	 	 	138	 	 	102	 	 	 	2,227	 	
 	 			 			 			 				 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	 	 	218	 	 	54	 	 	151	 	 	(8	)	 	 	415	 	
 	 			 			 			 				 				
Provision for income taxes	 	 	78	 	 	19	 	 	44	 	 	(72	)	 	 	69	 	
 	 			 			 			 				 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	 	 	140	 	 	35	 	 	107	 	 	64	 	 	 	346	 	
 	 			 			 			 				 				
Pro forma net realized losses on investments, net of taxes	 	 	—  	 	 	—  	 	 	—  	 	 	1	 	 	 	1	 	
Net tax benefit related to initial public offering	 	 	—  	 	 	—  	 	 	—  	 	 	(68	)	 	 	(68	)	
Gain on outsourcing services agreement, net of taxes	 	 	—  	 	 	—  	 	 	—  	 	 	(25	)	 	 	(25	)	
 	 			 			 			 				 				
NET OPERATING EARNINGS	 	$	140	 	$	35	 	$	107	 	$	(28	)	 	$	254	 	

																		
Three months ended December 31, 2003
	 	Protection
Segment
	 	RI&I
Segment
	 	Mortgage
Segment
	 	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	1,123	 	$	303	 	$	194	 	$	31	 	 	$	1,651	 	
Net investment income	 	 	273	 	 	394	 	 	58	 	 	32	 	 	 	757	 	
Net realized investment gains	 	 	—  	 	 	—  	 	 	—  	 	 	49	 	 	 	49	 	
Policy fees and other income	 	 	94	 	 	28	 	 	10	 	 	2	 	 	 	134	 	
 	 			 			 			 				 				
Total revenues	 	 	1,490	 	 	725	 	 	262	 	 	114	 	 	 	2,591	 	
 	 			 			 			 				 				
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	737	 	 	358	 	 	46	 	 	43	 	 	 	1,184	 	
Interest credited	 	 	90	 	 	245	 	 	—  	 	 	—  	 	 	 	335	 	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	199	 	 	64	 	 	74	 	 	15	 	 	 	352	 	
Amortization of deferred acquisition costs and intangibles	 	 	304	 	 	37	 	 	11	 	 	7	 	 	 	359	 	
Interest expense	 	 	2	 	 	—  	 	 	—  	 	 	59	 	 	 	61	 	
 	 			 			 			 				 				
Total benefits and expenses	 	 	1,332	 	 	704	 	 	131	 	 	124	 	 	 	2,291	 	
 	 			 			 			 				 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	 	 	158	 	 	21	 	 	131	 	 	(10	)	 	 	300	 	
 	 			 			 			 				 				
Provision for income taxes	 	 	62	 	 	9	 	 	54	 	 	(36	)	 	 	89	 	
 	 			 			 			 				 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	 	 	96	 	 	12	 	 	77	 	 	26	 	 	 	211	 	
 	 			 			 			 				 				
Pro forma net realized gain on investments, net of taxes	 	 	—  	 	 	—  	 	 	—  	 	 	(32	)	 	 	(32	)	
 	 			 			 			 				 				
NET OPERATING EARNINGS (LOSS)	 	$	96	 	$	12	 	$	77	 	$	(6	)	 	$	179	 	

22

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Statement of Earnings by Segment
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	 	Protection
Segment
	 	RI&I
Segment
	 	Mortgage
Segment
	 	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	4,398	 	$	1,094	 	$	800	 	$	96	 	 	$	6,388	 	
Net investment income	 	 	1,178	 	 	1,582	 	 	254	 	 	146	 	 	 	3,160	 	
Net realized investment gains	 	 	—  	 	 	—  	 	 	—  	 	 	23	 	 	 	23	 	
Policy fees and other income	 	 	359	 	 	215	 	 	36	 	 	54	 	 	 	664	 	
 	 			 			 			 				 				
Total revenues	 	 	5,935	 	 	2,891	 	 	1,090	 	 	319	 	 	 	10,235	 	
 	 			 			 			 				 				
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	2,788	 	 	1,352	 	 	165	 	 	35	 	 	 	4,340	 	
Interest credited	 	 	362	 	 	957	 	 	—  	 	 	—  	 	 	 	1,319	 	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	1,077	 	 	229	 	 	262	 	 	89	 	 	 	1,657	 	
Amortization of deferred acquisition costs and intangibles	 	 	861	 	 	122	 	 	51	 	 	18	 	 	 	1,052	 	
Interest expense	 	 	15	 	 	1	 	 	—  	 	 	227	 	 	 	243	 	
 	 			 			 			 				 				
Total benefits and expenses	 	 	5,103	 	 	2,661	 	 	478	 	 	369	 	 	 	8,611	 	
 	 			 			 			 				 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	 	 	832	 	 	230	 	 	612	 	 	(50	)	 	 	1,624	 	
 	 			 			 			 				 				
Provision for income taxes	 	 	305	 	 	82	 	 	186	 	 	(79	)	 	 	494	 	
 	 			 			 			 				 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	 	 	527	 	 	148	 	 	426	 	 	29	 	 	 	1,130	 	
 	 			 			 			 				 				
Pro forma net realized gains on investments, net of taxes	 	 	—  	 	 	—  	 	 	—  	 	 	(15	)	 	 	(15	)	
Net tax benefit related to initial public offering	 	 	—  	 	 	—  	 	 	—  	 	 	(46	)	 	 	(46	)	
Gain on outsourcing services agreement, net of taxes	 	 	—  	 	 	—  	 	 	—  	 	 	(25	)	 	 	(25	)	
 	 			 			 			 				 				
NET OPERATING EARNINGS (LOSS)	 	$	527	 	$	148	 	$	426	 	$	(57	)	 	$	1,044	 	

																		
Twelve months ended December 31, 2003
	 	Protection
Segment
	 	RI&I
Segment
	 	Mortgage
Segment
	 	Corporate
Segment
	 	 	Combined
	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	4,381	 	$	1,049	 	$	716	 	$	110	 	 	$	6,256	 	
Net investment income	 	 	1,092	 	 	1,563	 	 	218	 	 	91	 	 	 	2,964	 	
Net realized investment gains	 	 	—  	 	 	—  	 	 	—  	 	 	38	 	 	 	38	 	
Policy fees and other income	 	 	356	 	 	117	 	 	48	 	 	8	 	 	 	529	 	
 	 			 			 			 				 				
Total revenues	 	 	5,829	 	 	2,729	 	 	982	 	 	247	 	 	 	9,787	 	
 	 			 			 			 				 				
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	2,745	 	 	1,293	 	 	115	 	 	76	 	 	 	4,229	 	
Interest credited	 	 	365	 	 	993	 	 	—  	 	 	—  	 	 	 	1,358	 	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	984	 	 	189	 	 	299	 	 	111	 	 	 	1,583	 	
Amortization of deferred acquisition costs and intangibles	 	 	981	 	 	113	 	 	37	 	 	18	 	 	 	1,149	 	
Interest expense	 	 	3	 	 	—  	 	 	—  	 	 	202	 	 	 	205	 	
 	 			 			 			 				 				
Total benefits and expenses	 	 	5,078	 	 	2,588	 	 	451	 	 	407	 	 	 	8,524	 	
 	 			 			 			 				 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	 	 	751	 	 	141	 	 	531	 	 	(160	)	 	 	1,263	 	
 	 			 			 			 				 				
Provision for income taxes	 	 	270	 	 	48	 	 	162	 	 	(109	)	 	 	371	 	
 	 			 			 			 				 				
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	 	 	481	 	 	93	 	 	369	 	 	(51	)	 	 	892	 	
 	 			 			 			 				 				
Pro forma net realized gains on investments, net of taxes	 	 	—  	 	 	—  	 	 	—  	 	 	(25	)	 	 	(25	)	
 	 			 			 			 				 				
NET OPERATING EARNINGS (LOSS)	 	$	481	 	$	93	 	$	369	 	$	(76	)	 	$	867	 	

23

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Protection
(Dollar amounts in millions)

Three months ended December 31, 2004
	  	Life
	  	Long Term
Care
	  	Payment
Protection Ins.
	  	Group
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	192	  	$	396	  	$	347	  	$	159	  	$	1,094	
Net investment income	  	 	115	  	 	158	  	 	27	  	 	11	  	 	311	
Policy fees and other income	  	 	93	  	 	2	  	 	2	  	 	5	  	 	102	
 	  			  			  			  			  			
Total revenues	  	 	400	  	 	556	  	 	376	  	 	175	  	 	1,507	
 	  			  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	166	  	 	378	  	 	51	  	 	110	  	 	705	
Interest credited	  	 	60	  	 	31	  	 	—  	  	 	—  	  	 	91	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	27	  	 	63	  	 	140	  	 	49	  	 	279	
Amortization of deferred acquisition costs and intangibles	  	 	37	  	 	13	  	 	149	  	 	9	  	 	208	
Interest expense	  	 	6	  	 	—  	  	 	—  	  	 	—  	  	 	6	
 	  			  			  			  			  			
Total benefits and expenses	  	 	296	  	 	485	  	 	340	  	 	168	  	 	1,289	
 	  			  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	104	  	 	71	  	 	36	  	 	7	  	 	218	
 	  			  			  			  			  			
Provision for income taxes	  	 	37	  	 	25	  	 	14	  	 	2	  	 	78	
 	  			  			  			  			  			
SEGMENT NET EARNINGS	  	$	67	  	$	46	  	$	22	  	$	5	  	$	140	

																	
Three months ended December 31, 2003
	  	Life
	  	Long Term
Care
	  	Payment
Protection Ins.
	 	 	Group
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	177	  	$	415	  	$	378	 	 	$	153	  	$	1,123	
Net investment income	  	 	113	  	 	132	  	 	19	 	 	 	9	  	 	273	
Policy fees and other income	  	 	78	  	 	5	  	 	5	 	 	 	6	  	 	94	
 	  			  			  				 			  			
Total revenues	  	 	368	  	 	552	  	 	402	 	 	 	168	  	 	1,490	
 	  			  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	166	  	 	361	  	 	106	 	 	 	104	  	 	737	
Interest credited	  	 	63	  	 	27	  	 	—  	 	 	 	—  	  	 	90	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	32	  	 	67	  	 	51	 	 	 	49	  	 	199	
Amortization of deferred acquisition costs and intangibles	  	 	26	  	 	21	  	 	249	 	 	 	8	  	 	304	
Interest expense	  	 	2	  	 	—  	  	 	—  	 	 	 	—  	  	 	2	
 	  			  			  				 			  			
Total benefits and expenses	  	 	289	  	 	476	  	 	406	 	 	 	161	  	 	1,332	
 	  			  			  				 			  			
EARNINGS BEFORE INCOME TAXES	  	 	79	  	 	76	  	 	(4	)	 	 	7	  	 	158	
 	  			  			  				 			  			
Provision for income taxes	  	 	29	  	 	29	  	 	1	 	 	 	3	  	 	62	
 	  			  			  				 			  			
SEGMENT NET EARNINGS (LOSS)	  	$	50	  	$	47	  	$	(5	)	 	$	4	  	$	96	

Segment Pro Forma Net Operating Earnings is equivalent to Pro Forma Segment Net Earnings.
 
24

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Protection
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	  	Life
	  	Long Term
Care
	  	Payment
Protection
	  	Group
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	759	  	$	1,589	  	$	1,427	  	$	623	  	$	4,398	
Net investment income	  	 	444	  	 	585	  	 	106	  	 	43	  	 	1,178	
Policy fees and other income	  	 	315	  	 	8	  	 	16	  	 	20	  	 	359	
 	  			  			  			  			  			
Total revenues	  	 	1,518	  	 	2,182	  	 	1,549	  	 	686	  	 	5,935	
 	  			  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	633	  	 	1,463	  	 	263	  	 	429	  	 	2,788	
Interest credited	  	 	242	  	 	119	  	 	—  	  	 	1	  	 	362	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	117	  	 	257	  	 	527	  	 	176	  	 	1,077	
Amortization of deferred acquisition costs and intangibles	  	 	125	  	 	77	  	 	625	  	 	34	  	 	861	
Interest expense	  	 	15	  	 	—  	  	 	—  	  	 	—  	  	 	15	
 	  			  			  			  			  			
Total benefits and expenses	  	 	1,132	  	 	1,916	  	 	1,415	  	 	640	  	 	5,103	
 	  			  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	386	  	 	266	  	 	134	  	 	46	  	 	832	
 	  			  			  			  			  			
Provision for income taxes	  	 	141	  	 	95	  	 	53	  	 	16	  	 	305	
 	  			  			  			  			  			
SEGMENT NET EARNINGS	  	$	245	  	$	171	  	$	81	  	$	30	  	$	527	

																
Twelve months ended December 31, 2003
	  	Life
	  	Long Term
Care
	  	Payment
Protection
	  	Group
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	698	  	$	1,567	  	$	1,508	  	$	608	  	$	4,381	
Net investment income	  	 	443	  	 	514	  	 	95	  	 	40	  	 	1,092	
Policy fees and other income	  	 	302	  	 	13	  	 	12	  	 	29	  	 	356	
 	  			  			  			  			  			
Total revenues	  	 	1,443	  	 	2,094	  	 	1,615	  	 	677	  	 	5,829	
 	  			  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	561	  	 	1,398	  	 	376	  	 	410	  	 	2,745	
Interest credited	  	 	257	  	 	108	  	 	—  	  	 	—  	  	 	365	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	143	  	 	257	  	 	409	  	 	175	  	 	984	
Amortization of deferred acquisition costs and intangibles	  	 	145	  	 	68	  	 	740	  	 	28	  	 	981	
Interest expense	  	 	3	  	 	—  	  	 	—  	  	 	—  	  	 	3	
 	  			  			  			  			  			
Total benefits and expenses	  	 	1,109	  	 	1,831	  	 	1,525	  	 	613	  	 	5,078	
 	  			  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	334	  	 	263	  	 	90	  	 	64	  	 	751	
 	  			  			  			  			  			
Provision for income taxes	  	 	123	  	 	98	  	 	26	  	 	23	  	 	270	
 	  			  			  			  			  			
SEGMENT NET EARNINGS	  	$	211	  	$	165	  	$	64	  	$	41	  	$	481	

Segment Pro Forma Net Operating Earnings is equivalent to Pro Forma Segment Net Earnings.
 
25

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Retirement Income and Investments
(Dollar amounts in millions)

Three months ended December 31, 2004
	  	Spread Based
Retail
Products
	  	Fee Based
Products
	  	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	277	  	$	—  	  	$	—  	  	$	277	
Net investment income	  	 	319	  	 	4	  	 	94	  	 	417	
Policy fees and other income	  	 	3	  	 	55	  	 	—  	  	 	58	
 	  			  			  			  			
Total revenues	  	 	599	  	 	59	  	 	94	  	 	752	
 	  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	361	  	 	2	  	 	—  	  	 	363	
Interest credited	  	 	173	  	 	3	  	 	77	  	 	253	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	19	  	 	28	  	 	1	  	 	48	
Amortization of deferred acquisition costs and intangibles	  	 	27	  	 	7	  	 	—  	  	 	34	
Interest expense	  	 	—  	  	 	—  	  	 	—  	  	 	—  	
 	  			  			  			  			
Total benefits and expenses	  	 	580	  	 	40	  	 	78	  	 	698	
 	  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	19	  	 	19	  	 	16	  	 	54	
 	  			  			  			  			
Provision for income taxes	  	 	10	  	 	3	  	 	6	  	 	19	
 	  			  			  			  			
SEGMENT NET EARNINGS	  	$	9	  	$	16	  	$	10	  	$	35	

														
Three months ended December 31, 2003
	  	Spread Based
Retail
Products
	  	Fee Based
Products
	 	 	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	303	  	$	—  	 	 	$	—  	  	$	303	
Net investment income	  	 	301	  	 	13	 	 	 	80	  	 	394	
Policy fees and other income	  	 	4	  	 	24	 	 	 	—  	  	 	28	
 	  			  				 			  			
Total revenues	  	 	608	  	 	37	 	 	 	80	  	 	725	
 	  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	347	  	 	11	 	 	 	—  	  	 	358	
Interest credited	  	 	166	  	 	8	 	 	 	71	  	 	245	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	38	  	 	23	 	 	 	3	  	 	64	
Amortization of deferred acquisition costs and intangibles	  	 	46	  	 	(9	)	 	 	—  	  	 	37	
Interest expense	  	 	—  	  	 	—  	 	 	 	—  	  	 	—  	
 	  			  				 			  			
Total benefits and expenses	  	 	597	  	 	33	 	 	 	74	  	 	704	
 	  			  				 			  			
EARNINGS BEFORE INCOME TAXES	  	 	11	  	 	4	 	 	 	6	  	 	21	
 	  			  				 			  			
Provision for income taxes	  	 	3	  	 	4	 	 	 	2	  	 	9	
 	  			  				 			  			
SEGMENT NET EARNINGS	  	$	8	  	$	—  	 	 	$	4	  	$	12	

Segment Pro Forma Net Operating Earnings is equivalent to Pro Forma Segment Net Earnings.
 
26

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Retirement Income and Investments
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	  	Spread Based
Retail
Products
	  	Fee Based
Products
	  	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	1,094	  	$	—  	  	$	—  	  	$	1,094	
Net investment income	  	 	1,239	  	 	11	  	 	332	  	 	1,582	
Policy fees and other income	  	 	14	  	 	201	  	 	—  	  	 	215	
 	  			  			  			  			
Total revenues	  	 	2,347	  	 	212	  	 	332	  	 	2,891	
 	  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	1,345	  	 	7	  	 	—  	  	 	1,352	
Interest credited	  	 	667	  	 	9	  	 	281	  	 	957	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	111	  	 	114	  	 	4	  	 	229	
Amortization of deferred acquisition costs and intangibles	  	 	106	  	 	16	  	 	—  	  	 	122	
Interest expense	  	 	1	  	 	—  	  	 	—  	  	 	1	
 	  			  			  			  			
Total benefits and expenses	  	 	2,230	  	 	146	  	 	285	  	 	2,661	
 	  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	117	  	 	66	  	 	47	  	 	230	
 	  			  			  			  			
Provision for income taxes	  	 	46	  	 	19	  	 	17	  	 	82	
 	  			  			  			  			
SEGMENT NET EARNINGS	  	$	71	  	$	47	  	$	30	  	$	148	

														
Twelve months ended December 31, 2003
	  	Spread Based
Retail
Products
	  	Fee Based
Products
	 	 	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	1,049	  	$	—	 	 	$	—	  	$	1,049	
Net investment income	  	 	1,186	  	 	31	 	 	 	346	  	 	1,563	
Policy fees and other income	  	 	14	  	 	103	 	 	 	—  	  	 	117	
 	  			  				 			  			
Total revenues	  	 	2,249	  	 	134	 	 	 	346	  	 	2,729	
 	  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	1,252	  	 	41	 	 	 	—  	  	 	1,293	
Interest credited	  	 	677	  	 	20	 	 	 	296	  	 	993	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	119	  	 	65	 	 	 	5	  	 	189	
Amortization of deferred acquisition costs and intangibles	  	 	105	  	 	8	 	 	 	—  	  	 	113	
Interest expense	  	 	—  	  	 	—  	 	 	 	—  	  	 	—  	
 	  			  				 			  			
Total benefits and expenses	  	 	2,153	  	 	134	 	 	 	301	  	 	2,588	
 	  			  				 			  			
EARNINGS BEFORE INCOME TAXES	  	 	96	  	 	—  	 	 	 	45	  	 	141	
 	  			  				 			  			
Provision for income taxes	  	 	36	  	 	(4	)	 	 	16	  	 	48	
 	  			  				 			  			
SEGMENT NET EARNINGS	  	$	60	  	$	4	 	 	$	29	  	$	93	

Segment Pro Forma Net Operating Earnings is equivalent to Pro Forma Segment Net Earnings.
 
27

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Mortgage Insurance
(Dollar amounts in millions)

Three months ended December 31, 2004
	  	U. S.
	  	International
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	
Premiums	  	$	112	  	$	101	  	$	213	
Net investment income	  	 	34	  	 	34	  	 	68	
Policy fees and other income	  	 	3	  	 	5	  	 	8	
 	  			  			  			
Total revenues	  	 	149	  	 	140	  	 	289	
 	  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	39	  	 	14	  	 	53	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	39	  	 	30	  	 	69	
Amortization of deferred acquisition costs and intangibles	  	 	10	  	 	6	  	 	16	
 	  			  			  			
Total benefits and expenses	  	 	88	  	 	50	  	 	138	
 	  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	61	  	 	90	  	 	151	
 	  			  			  			
Provision for income taxes	  	 	11	  	 	33	  	 	44	
 	  			  			  			
SEGMENT NET EARNINGS	  	$	50	  	$	57	  	$	107	

										
Three months ended December 31, 2003
	  	U. S.
	  	International
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	
Premiums	  	$	127	  	$	67	  	$	194	
Net investment income	  	 	31	  	 	27	  	 	58	
Policy fees and other income	  	 	6	  	 	4	  	 	10	
 	  			  			  			
Total revenues	  	 	164	  	 	98	  	 	262	
 	  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	42	  	 	4	  	 	46	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	52	  	 	22	  	 	74	
Amortization of deferred acquisition costs and intangibles	  	 	7	  	 	4	  	 	11	
 	  			  			  			
Total benefits and expenses	  	 	101	  	 	30	  	 	131	
 	  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	63	  	 	68	  	 	131	
 	  			  			  			
Provision for income taxes	  	 	24	  	 	30	  	 	54	
 	  			  			  			
SEGMENT NET EARNINGS	  	$	39	  	$	38	  	$	77	

Pro Forma Segment Net Earnings is equivalent to Historical Segment Net Earnings for the Mortgage Insurance Segment. Segment Pro Forma Net Operating Earnings is equivalent to Pro Forma Segment Net Earnings.
 
28

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Mortgage Insurance
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	  	U. S.
	  	International
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	
Premiums	  	$	460	  	$	340	  	$	800	
Net investment income	  	 	132	  	 	122	  	 	254	
Policy fees and other income	  	 	17	  	 	19	  	 	36	
 	  			  			  			
Total revenues	  	 	609	  	 	481	  	 	1,090	
 	  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	127	  	 	38	  	 	165	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	163	  	 	99	  	 	262	
Amortization of deferred acquisition costs and intangibles	  	 	31	  	 	20	  	 	51	
 	  			  			  			
Total benefits and expenses	  	 	321	  	 	157	  	 	478	
 	  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	288	  	 	324	  	 	612	
 	  			  			  			
Provision for income taxes	  	 	64	  	 	122	  	 	186	
 	  			  			  			
SEGMENT NET EARNINGS	  	$	224	  	$	202	  	$	426	

			 	
Twelve months ended December 31, 2003
	  	U. S.
	  	International
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	
Premiums	  	$	501	  	$	215	  	$	716	
Net investment income	  	 	128	  	 	90	  	 	218	
Policy fees and other income	  	 	36	  	 	12	  	 	48	
 	  			  			  			
Total revenues	  	 	665	  	 	317	  	 	982	
 	  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	99	  	 	16	  	 	115	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	234	  	 	65	  	 	299	
Amortization of deferred acquisition costs and intangibles	  	 	25	  	 	12	  	 	37	
 	  			  			  			
Total benefits and expenses	  	 	358	  	 	93	  	 	451	
 	  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	307	  	 	224	  	 	531	
 	  			  			  			
Provision for income taxes	  	 	82	  	 	80	  	 	162	
 	  			  			  			
SEGMENT NET EARNINGS	  	$	225	  	$	144	  	$	369	

Pro Forma Segment Net Earnings is equivalent to Historical Segment Net Earnings for the Mortgage Insurance Segment. Segment Pro Forma Net Operating Earnings is equivalent to Pro Forma Segment Net Earnings.
 
29

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Selected Key Performance Measures—Mortgage Insurance
(Dollar amounts in millions)

 	  	As of or for the three months ended
December 31
	 	
 	  	      2004      
	 	 	      2003      
	 	
Primary Insurance in Force	  	 	 	 	 	 	 	 	
U.S. Mortgage Insurance	  	$	108,900	 	 	$	122,200	 	
International Mortgage Insurance	  	 	192,600	 	 	 	136,300	 	
 	  				 				
Total primary insurance in force	  	$	301,500	 	 	$	258,500	 	
 	  				 				
Total Risk in Force	  	 	 	 	 	 	 	 	
U.S. Mortgage Insurance	  	$	23,700	 	 	$	26,900	 	
International Mortgage Insurance	  	 	62,000	 	 	 	43,400	 	
 	  				 				
Total risk in force	  	$	85,700	 	 	$	70,300	 	
 	  				 				
New Insurance Written	  	 	 	 	 	 	 	 	
U.S. Mortgage Insurance	  	$	7,074	 	 	$	18,087	 	
International Mortgage Insurance	  	 	15,225	 	 	 	12,210	 	
 	  				 				
Total new insurance written	  	$	22,299	 	 	$	30,297	 	
 	  				 				
Net Premiums Written	  	 	 	 	 	 	 	 	
U.S. Mortgage Insurance	  	$	111	 	 	$	120	 	
International Mortgage Insurance	  	 	169	 	 	 	146	 	
 	  				 				
Total net premiums written	  	$	280	 	 	$	266	 	
 	  				 				
Loss Ratio	  	 	 	 	 	 	 	 	
U.S. Mortgage Insurance	  	 	35	%	 	 	33	%	
International Mortgage Insurance	  	 	14	%	 	 	6	%	
 	  				 				
Total loss ratio	  	 	25	%	 	 	24	%	
 	  				 				
Expense Ratio	  	 	 	 	 	 	 	 	
U.S. Mortgage Insurance	  	 	44	%	 	 	49	%	
International Mortgage Insurance	  	 	21	%	 	 	18	%	
 	  				 				
Total expense ratio	  	 	30	%	 	 	32	%	

30

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Selected Key Performance Measures—Mortgage Insurance, Domestic Only
(Dollar amounts in millions)

 	  	As of or for the three months ended
December 31
	 	
 	  	      2004      
	 	 	      2003      
	 	
New Risk Written	  	 	 	 	 	 	 	 	
Flow	  	$	1,638	 	 	$	2,627	 	
Bulk	  	 	9	 	 	 	90	 	
 	  				 				
Total	  	$	1,647	 	 	$	2,717	 	
 	  				 				
Risk in Force	  	 	 	 	 	 	 	 	
Flow	  	$	22,666	 	 	$	25,396	 	
Bulk	  	 	303	 	 	 	409	 	
 	  				 				
Primary	  	 	22,969	 	 	 	25,805	 	
Pool	  	 	736	 	 	 	1,046	 	
 	  				 				
Total	  	$	23,705	 	 	$	26,851	 	
 	  				 				
Risk in Force by Credit Quality	  	 	 	 	 	 	 	 	
Flow by FICO Scores > 619 (%)	  	 	92	%	 	 	92	%	
Flow by FICO Scores 575-619	  	 	6	%	 	 	6	%	
Flow by FICO Scores < 575	  	 	2	%	 	 	2	%	
			
Bulk by FICO Scores > 619	  	 	91	%	 	 	86	%	
Bulk by FICO Scores 575-619	  	 	5	%	 	 	8	%	
Bulk by FICO Scores < 575	  	 	4	%	 	 	6	%	
			
Primary A minus and sub-prime	  	 	9.9	%	 	 	9.3	%	
			
Primary Loans	  	 	 	 	 	 	 	 	
Primary total loans in force	  	 	830,688	 	 	 	950,157	 	
Primary total loans in default	  	 	28,467	 	 	 	32,207	 	
Primary loans total default rate	  	 	3.4	%	 	 	3.4	%	
			
Flow loans in default	  	 	26,737	 	 	 	29,787	 	
Flow loans default rate	  	 	3.7	%	 	 	3.5	%	
			
Bulk loans in default	  	 	1,730	 	 	 	2,420	 	
Bulk loans default rate	  	 	1.6	%	 	 	2.2	%	
			
A minus and sub-prime loans in default	  	 	7,068	 	 	 	6,881	 	
A minus and sub-prime loans default rate	  	 	10.1	%	 	 	9.1	%	
			
Pool Loans	  	 	 	 	 	 	 	 	
Pool loans in default	  	 	777	 	 	 	855	 	
Pool loans default rate	  	 	3.1	%	 	 	2.3	%	
			
Claims Paid	  	 	 	 	 	 	 	 	
Primary Claims Paid (includes LAE)	  	 	38.4	 	 	 	31.7	 	
Pool Claims Paid (includes LAE)	  	 	0.1	 	 	 	0.2	 	
Primary Average Claim Severity	  	 	96	%	 	 	94	%	
			
Other Measures	  	 	 	 	 	 	 	 	
Flow Persistency (1)	  	 	64	%	 	 	58	%	
Gross written premiums ceded to captives/total gross written premiums	  	 	25	%	 	 	23	%	

(1)	Excludes bulk transactions and the effect of a periodic payoff reconciliation on one structured transaction involving single premium mortgage insurance.	
 
31

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Corporate and Other
(Dollar amounts in millions)

Three months ended December 31, 2004
	    	Total
	 	
REVENUES	    	 	 	 	
Premiums	    	$	22	 	
Net investment income	    	 	29	 	
Net realized investment losses	    	 	(1	)	
Policy fees and other income	    	 	44	 	
 	    				
Total revenues	    	 	94	 	
 	    				
BENEFITS AND EXPENSES	    	 	 	 	
Benefits and other changes in policy reserves	    	 	8	 	
Interest credited	    	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	    	 	33	 	
Amortization of deferred acquisition costs and intangibles	    	 	4	 	
Interest expense	    	 	57	 	
 	    				
Total benefits and expenses	    	 	102	 	
 	    				
LOSS BEFORE INCOME TAXES	    	 	(8	)	
 	    				
Benefit from income taxes	    	 	(72	)	
 	    				
SEGMENT NET EARNINGS	    	 	64	 	
 	    				
Pro forma net realized losses on investments, net of taxes	    	 	1	 	
Net tax benefit related to initial public offering	    	 	(68	)	
Gain on outsourcing services agreement, net of taxes	    	 	(25	)	
 	    				
NET OPERATING LOSS	    	$	(28	)	

					
Three months ended December 31, 2003
	    	Total
	 	
REVENUES	    	 	 	 	
Premiums	    	$	31	 	
Net investment income	    	 	32	 	
Net realized investment gains	    	 	49	 	
Policy fees and other income	    	 	2	 	
 	    				
Total revenues	    	 	114	 	
 	    				
BENEFITS AND EXPENSES	    	 	 	 	
Benefits and other changes in policy reserves	    	 	43	 	
Interest credited	    	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	    	 	15	 	
Amortization of deferred acquisition costs and intangibles	    	 	7	 	
Interest expense	    	 	59	 	
 	    				
Total benefits and expenses	    	 	124	 	
 	    				
LOSS BEFORE INCOME TAXES	    	 	(10	)	
 	    				
Benefit from income taxes	    	 	(36	)	
 	    				
SEGMENT NET EARNINGS	    	 	26	 	
 	    				
Pro forma net realized gains on investments, net of taxes	    	 	(32	)	
 	    				
NET OPERATING LOSS	    	$	(6	)	

32

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Corporate and Other
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	    	Total
	 	
REVENUES	    	 	 	 	
Premiums	    	$	96	 	
Net investment income	    	 	146	 	
Net realized investment gains	    	 	23	 	
Policy fees and other income	    	 	54	 	
 	    				
Total revenues	    	 	319	 	
 	    				
BENEFITS AND EXPENSES	    	 	 	 	
Benefits and other changes in policy reserves	    	 	35	 	
Interest credited	    	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	    	 	89	 	
Amortization of deferred acquisition costs and intangibles	    	 	18	 	
Interest expense	    	 	227	 	
 	    				
Total benefits and expenses	    	 	369	 	
 	    				
LOSS BEFORE INCOME TAXES	    	 	(50	)	
 	    				
Benefit from income taxes	    	 	(79	)	
 	    				
SEGMENT NET EARNINGS	    	 	29	 	
 	    				
Pro forma net realized gains on investments, net of taxes	    	 	(15	)	
Net tax benefit related to initial public offering	    	 	(46	)	
Gain on outsourcing services agreement, net of taxes	    	 	(25	)	
 	    				
NET OPERATING LOSS	    	$	(57	)	

					
Twelve months ended December 31, 2003
	    	Total
	 	
REVENUES	    	 	 	 	
Premiums	    	$	110	 	
Net investment income	    	 	91	 	
Net realized investment gains	    	 	38	 	
Policy fees and other income	    	 	8	 	
 	    				
Total revenues	    	 	247	 	
 	    				
BENEFITS AND EXPENSES	    	 	 	 	
Benefits and other changes in policy reserves	    	 	76	 	
Interest credited	    	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	    	 	111	 	
Amortization of deferred acquisition costs and intangibles	    	 	18	 	
Interest expense	    	 	202	 	
 	    				
Total benefits and expenses	    	 	407	 	
 	    				
LOSS BEFORE INCOME TAXES	    	 	(160	)	
 	    				
Benefit from income taxes	    	 	(109	)	
 	    				
SEGMENT NET LOSS	    	 	(51	)	
 	    				
Pro forma net realized gains on investments, net of taxes	    	 	(25	)	
 	    				
NET OPERATING LOSS	    	$	(76	)	

33

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Net Earnings
(Dollar amounts in millions)

 	 	2004
	 	 	2003
	 	
 	 	Q4
	 	 	Q3
	 	 	Q2
	 	 	Q1
	 	 	Total
	 	 	Q4
	 	 	Q3
	 	 	Q2
	 	 	Q1
	 	 	Total
	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	1,606	 	 	$	1,523	 	 	$	1,640	 	 	$	1,619	 	 	$	6,388	 	 	$	1,651	 	 	$	1,547	 	 	$	1,580	 	 	$	1,478	 	 	$	6,256	 	
Net investment income	 	 	825	 	 	 	785	 	 	 	797	 	 	 	753	 	 	 	3,160	 	 	 	757	 	 	 	764	 	 	 	722	 	 	 	721	 	 	 	2,964	 	
Net realized investment gains (losses)	 	 	(1	)	 	 	3	 	 	 	6	 	 	 	15	 	 	 	23	 	 	 	49	 	 	 	(9	)	 	 	(22	)	 	 	20	 	 	 	38	 	
Policy fees and other income	 	 	212	 	 	 	159	 	 	 	144	 	 	 	149	 	 	 	664	 	 	 	134	 	 	 	134	 	 	 	123	 	 	 	138	 	 	 	529	 	
 	 				 				 				 				 				 				 				 				 				 				
Total revenues	 	 	2,642	 	 	 	2,470	 	 	 	2,587	 	 	 	2,536	 	 	 	10,235	 	 	 	2,591	 	 	 	2,436	 	 	 	2,403	 	 	 	2,357	 	 	 	9,787	 	
 	 				 				 				 				 				 				 				 				 				 				
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	1,129	 	 	 	1,034	 	 	 	1,097	 	 	 	1,080	 	 	 	4,340	 	 	 	1,184	 	 	 	1,079	 	 	 	967	 	 	 	999	 	 	 	4,229	 	
Interest credited	 	 	344	 	 	 	328	 	 	 	324	 	 	 	323	 	 	 	1,319	 	 	 	335	 	 	 	340	 	 	 	340	 	 	 	343	 	 	 	1,358	 	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	429	 	 	 	399	 	 	 	416	 	 	 	413	 	 	 	1,657	 	 	 	352	 	 	 	441	 	 	 	386	 	 	 	404	 	 	 	1,583	 	
Amortization of deferred acquisition costs and intangibles	 	 	262	 	 	 	242	 	 	 	264	 	 	 	284	 	 	 	1,052	 	 	 	359	 	 	 	226	 	 	 	313	 	 	 	251	 	 	 	1,149	 	
Interest expense	 	 	63	 	 	 	60	 	 	 	59	 	 	 	61	 	 	 	243	 	 	 	61	 	 	 	57	 	 	 	44	 	 	 	43	 	 	 	205	 	
 	 				 				 				 				 				 				 				 				 				 				
Total benefits and expenses	 	 	2,227	 	 	 	2,063	 	 	 	2,160	 	 	 	2,161	 	 	 	8,611	 	 	 	2,291	 	 	 	2,143	 	 	 	2,050	 	 	 	2,040	 	 	 	8,524	 	
 	 				 				 				 				 				 				 				 				 				 				
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	 	 	415	 	 	 	407	 	 	 	427	 	 	 	375	 	 	 	1,624	 	 	 	300	 	 	 	293	 	 	 	353	 	 	 	317	 	 	 	1,263	 	
 	 				 				 				 				 				 				 				 				 				 				
Provision for income taxes	 	 	69	 	 	 	136	 	 	 	168	 	 	 	121	 	 	 	494	 	 	 	89	 	 	 	83	 	 	 	111	 	 	 	88	 	 	 	371	 	
 	 				 				 				 				 				 				 				 				 				 				
NET EARNINGS FROM CONTINUING OPERATIONS	 	 	346	 	 	 	271	 	 	 	259	 	 	 	254	 	 	 	1,130	 	 	 	211	 	 	 	210	 	 	 	242	 	 	 	229	 	 	 	892	 	
 	 				 				 				 				 				 				 				 				 				 				
Pro forma net realized (gains) losses on investments, net of taxes	 	 	1	 	 	 	(2	)	 	 	(4	)	 	 	(10	)	 	 	(15	)	 	 	(32	)	 	 	6	 	 	 	14	 	 	 	(13	)	 	 	(25	)	
Net tax benefit related to initial public offering	 	 	(68	)	 	 	—  	 	 	 	22	 	 	 	—  	 	 	 	(46	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Gain on outsourcing services agreement, net of taxes	 	 	(25	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(25	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	 				 				 				 				 				 				 				 				 				 				
NET OPERATING EARNINGS	 	$	254	 	 	$	269	 	 	$	277	 	 	$	244	 	 	$	1,044	 	 	$	179	 	 	$	216	 	 	$	256	 	 	$	216	 	 	$	867	 	

34

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Protection
(Dollar amounts in millions)

 	 	2004
	 	2003
	
 	 	Q4
	 	Q3
	 	Q2
	 	Q1
	 	Total
	 	Q4
	 	Q3
	 	Q2
	 	Q1
	 	Total
	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	1,094	 	$	1,085	 	$	1,098	 	$	1,121	 	$	4,398	 	$	1,123	 	$	1,099	 	$	1,128	 	$	1,031	 	$	4,381	
Net investment income	 	 	311	 	 	298	 	 	288	 	 	281	 	 	1,178	 	 	273	 	 	277	 	 	271	 	 	271	 	 	1,092	
Policy fees and other income	 	 	102	 	 	91	 	 	79	 	 	87	 	 	359	 	 	94	 	 	90	 	 	81	 	 	91	 	 	356	
 	 			 			 			 			 			 			 			 			 			 			
Total revenues	 	 	1,507	 	 	1,474	 	 	1,465	 	 	1,489	 	 	5,935	 	 	1,490	 	 	1,466	 	 	1,480	 	 	1,393	 	 	5,829	
 	 			 			 			 			 			 			 			 			 			 			
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	705	 	 	698	 	 	691	 	 	694	 	 	2,788	 	 	737	 	 	707	 	 	657	 	 	644	 	 	2,745	
Interest credited	 	 	91	 	 	91	 	 	90	 	 	90	 	 	362	 	 	90	 	 	92	 	 	92	 	 	91	 	 	365	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	279	 	 	267	 	 	262	 	 	269	 	 	1,077	 	 	199	 	 	280	 	 	244	 	 	261	 	 	984	
Amortization of deferred acquisition costs and intangibles	 	 	208	 	 	198	 	 	214	 	 	241	 	 	861	 	 	304	 	 	181	 	 	290	 	 	206	 	 	981	
Interest expense	 	 	6	 	 	4	 	 	2	 	 	3	 	 	15	 	 	2	 	 	1	 	 	—  	 	 	—  	 	 	3	
 	 			 			 			 			 			 			 			 			 			 			
Total benefits and expenses	 	 	1,289	 	 	1,258	 	 	1,259	 	 	1,297	 	 	5,103	 	 	1,332	 	 	1,261	 	 	1,283	 	 	1,202	 	 	5,078	
 	 			 			 			 			 			 			 			 			 			 			
EARNINGS BEFORE INCOME TAXES	 	 	218	 	 	216	 	 	206	 	 	192	 	 	832	 	 	158	 	 	205	 	 	197	 	 	191	 	 	751	
 	 			 			 			 			 			 			 			 			 			 			
Provision for income taxes	 	 	78	 	 	81	 	 	77	 	 	69	 	 	305	 	 	62	 	 	73	 	 	68	 	 	67	 	 	270	
 	 			 			 			 			 			 			 			 			 			 			
SEGMENT NET EARNINGS	 	$	140	 	$	135	 	$	129	 	$	123	 	$	527	 	$	96	 	$	132	 	$	129	 	$	124	 	$	481	

Segment Pro Forma Net Operating Earnings is equivalent to Pro Forma Segment Net Earnings.
 
35

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Retirement Income and Investments
(Dollar amounts in millions)

 	 	2004
	 	2003
	
 	 	Q4
	 	Q3
	 	Q2
	 	Q1
	 	Total
	 	Q4
	 	Q3
	 	Q2
	 	Q1
	 	Total
	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	277	 	$	219	 	$	321	 	$	277	 	$	1,094	 	$	303	 	$	237	 	$	251	 	$	258	 	$	1,049	
Net investment income	 	 	417	 	 	393	 	 	395	 	 	377	 	 	1,582	 	 	394	 	 	381	 	 	387	 	 	401	 	 	1,563	
Policy fees and other income	 	 	58	 	 	52	 	 	53	 	 	52	 	 	215	 	 	28	 	 	29	 	 	27	 	 	33	 	 	117	
 	 			 			 			 			 			 			 			 			 			 			
Total revenues	 	 	752	 	 	664	 	 	769	 	 	706	 	 	2,891	 	 	725	 	 	647	 	 	665	 	 	692	 	 	2,729	
 	 			 			 			 			 			 			 			 			 			 			
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	363	 	 	281	 	 	370	 	 	338	 	 	1,352	 	 	358	 	 	316	 	 	306	 	 	313	 	 	1,293	
Interest credited	 	 	253	 	 	237	 	 	234	 	 	233	 	 	957	 	 	245	 	 	248	 	 	248	 	 	252	 	 	993	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	48	 	 	59	 	 	61	 	 	61	 	 	229	 	 	64	 	 	33	 	 	40	 	 	52	 	 	189	
Amortization of deferred acquisition costs and intangibles	 	 	34	 	 	25	 	 	35	 	 	28	 	 	122	 	 	37	 	 	30	 	 	12	 	 	34	 	 	113	
Interest expense	 	 	—  	 	 	—  	 	 	1	 	 	—  	 	 	1	 	 	—  	 	 	—  	 	 	—  	 	 	—  	 	 	—  	
 	 			 			 			 			 			 			 			 			 			 			
Total benefits and expenses	 	 	698	 	 	602	 	 	701	 	 	660	 	 	2,661	 	 	704	 	 	627	 	 	606	 	 	651	 	 	2,588	
 	 			 			 			 			 			 			 			 			 			 			
EARNINGS BEFORE INCOME TAXES	 	 	54	 	 	62	 	 	68	 	 	46	 	 	230	 	 	21	 	 	20	 	 	59	 	 	41	 	 	141	
 	 			 			 			 			 			 			 			 			 			 			
Provision for income taxes	 	 	19	 	 	22	 	 	25	 	 	16	 	 	82	 	 	9	 	 	5	 	 	19	 	 	15	 	 	48	
 	 			 			 			 			 			 			 			 			 			 			
SEGMENT NET EARNINGS	 	$	35	 	$	40	 	$	43	 	$	30	 	$	148	 	$	12	 	$	15	 	$	40	 	$	26	 	$	93	

 
Segment Pro Forma Net Operating Earnings is equivalent to Pro Forma Segment Net Earnings.
 
36

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Mortgage Insurance
(Dollar amounts in millions)

 	  	2004
	  	2003
	
 	  	Q4
	  	Q3
	  	Q2
	  	Q1
	  	Total
	  	Q4
	  	Q3
	  	Q2
	 	 	Q1
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	213	  	$	197	  	$	195	  	$	195	  	$	800	  	$	194	  	$	182	  	$	175	 	 	$	165	  	$	716	
Net investment income	  	 	68	  	 	65	  	 	61	  	 	60	  	 	254	  	 	58	  	 	56	  	 	54	 	 	 	50	  	 	218	
Policy fees and other income	  	 	8	  	 	10	  	 	10	  	 	8	  	 	36	  	 	10	  	 	13	  	 	13	 	 	 	12	  	 	48	
 	  			  			  			  			  			  			  			  				 			  			
Total revenues	  	 	289	  	 	272	  	 	266	  	 	263	  	 	1,090	  	 	262	  	 	251	  	 	242	 	 	 	227	  	 	982	
 	  			  			  			  			  			  			  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	53	  	 	46	  	 	27	  	 	39	  	 	165	  	 	46	  	 	44	  	 	(8	)	 	 	33	  	 	115	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	69	  	 	64	  	 	65	  	 	64	  	 	262	  	 	74	  	 	74	  	 	81	 	 	 	70	  	 	299	
Amortization of deferred acquisition costs and intangibles	  	 	16	  	 	12	  	 	11	  	 	12	  	 	51	  	 	11	  	 	10	  	 	8	 	 	 	8	  	 	37	
 	  			  			  			  			  			  			  			  				 			  			
Total benefits and expenses	  	 	138	  	 	122	  	 	103	  	 	115	  	 	478	  	 	131	  	 	128	  	 	81	 	 	 	111	  	 	451	
 	  			  			  			  			  			  			  			  				 			  			
EARNINGS BEFORE INCOME TAXES	  	 	151	  	 	150	  	 	163	  	 	148	  	 	612	  	 	131	  	 	123	  	 	161	 	 	 	116	  	 	531	
 	  			  			  			  			  			  			  			  				 			  			
Provision for income taxes	  	 	44	  	 	48	  	 	49	  	 	45	  	 	186	  	 	54	  	 	30	  	 	47	 	 	 	31	  	 	162	
 	  			  			  			  			  			  			  			  				 			  			
SEGMENT NET EARNINGS	  	$	107	  	$	102	  	$	114	  	$	103	  	$	426	  	$	77	  	$	93	  	$	114	 	 	$	85	  	$	369	

 
 
Pro Forma Segment Net Earnings is equivalent to Historical Segment Net Earnings for the Mortgage Insurance Segment. Segment Pro Forma Net Operating Earnings is equivalent to Pro Forma Segment Net Earnings.
 
37

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Pro Forma Segment Net Earnings—Corporate and Other
(Dollar amounts in millions)

 	  	2004
	 	 	2003
	 	
 	  	Q4
	 	 	Q3
	 	 	Q2
	 	 	Q1
	 	 	Total
	 	 	Q4
	 	 	Q3
	 	 	Q2
	 	 	Q1
	 	 	Total
	 	
REVENUES:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	  	$	22	 	 	$	22	 	 	$	26	 	 	$	26	 	 	$	96	 	 	$	31	 	 	$	29	 	 	$	26	 	 	$	24	 	 	$	110	 	
Net investment income (loss)	  	 	29	 	 	 	29	 	 	 	53	 	 	 	35	 	 	 	146	 	 	 	32	 	 	 	50	 	 	 	10	 	 	 	(1	)	 	 	91	 	
Net realized investment gains	  	 	(1	)	 	 	3	 	 	 	6	 	 	 	15	 	 	 	23	 	 	 	49	 	 	 	(9	)	 	 	(22	)	 	 	20	 	 	 	38	 	
Policy fees and other income	  	 	44	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	54	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	8	 	
 	  				 				 				 				 				 				 				 				 				 				
Total Revenue	  	 	94	 	 	 	60	 	 	 	87	 	 	 	78	 	 	 	319	 	 	 	114	 	 	 	72	 	 	 	16	 	 	 	45	 	 	 	247	 	
 	  				 				 				 				 				 				 				 				 				 				
BENEFITS AND EXPENSES	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	8	 	 	 	9	 	 	 	9	 	 	 	9	 	 	 	35	 	 	 	43	 	 	 	12	 	 	 	12	 	 	 	9	 	 	 	76	 	
Interest credited	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	33	 	 	 	9	 	 	 	28	 	 	 	19	 	 	 	89	 	 	 	15	 	 	 	54	 	 	 	21	 	 	 	21	 	 	 	111	 	
Amortization of deferred acquisition costs and intangibles	  	 	4	 	 	 	7	 	 	 	4	 	 	 	3	 	 	 	18	 	 	 	7	 	 	 	5	 	 	 	3	 	 	 	3	 	 	 	18	 	
Interest expense	  	 	57	 	 	 	56	 	 	 	56	 	 	 	58	 	 	 	227	 	 	 	59	 	 	 	56	 	 	 	44	 	 	 	43	 	 	 	202	 	
 	  				 				 				 				 				 				 				 				 				 				
Total benefits and expenses	  	 	102	 	 	 	81	 	 	 	97	 	 	 	89	 	 	 	369	 	 	 	124	 	 	 	127	 	 	 	80	 	 	 	76	 	 	 	407	 	
 	  				 				 				 				 				 				 				 				 				 				
LOSS BEFORE INCOME TAXES	  	 	(8	)	 	 	(21	)	 	 	(10	)	 	 	(11	)	 	 	(50	)	 	 	(10	)	 	 	(55	)	 	 	(64	)	 	 	(31	)	 	 	(160	)	
 	  				 				 				 				 				 				 				 				 				 				
Provision (benefit) for income taxes	  	 	(72	)	 	 	(15	)	 	 	17	 	 	 	(9	)	 	 	(79	)	 	 	(36	)	 	 	(25	)	 	 	(23	)	 	 	(25	)	 	 	(109	)	
 	  				 				 				 				 				 				 				 				 				 				
SEGMENT NET EARNINGS (LOSS)	  	 	64	 	 	 	(6	)	 	 	(27	)	 	 	(2	)	 	 	29	 	 	 	26	 	 	 	(30	)	 	 	(41	)	 	 	(6	)	 	 	(51	)	
 	  				 				 				 				 				 				 				 				 				 				
Pro forma net realized (gains) losses on investments, net of taxes	  	 	1	 	 	 	(2	)	 	 	(4	)	 	 	(10	)	 	 	(15	)	 	 	(32	)	 	 	6	 	 	 	14	 	 	 	(13	)	 	 	(25	)	
Net tax benefit related to initial public offering	  	 	(68	)	 	 	—  	 	 	 	22	 	 	 	—  	 	 	 	(46	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Gain on outsourcing services agreement, net of taxes	  	 	(25	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(25	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				 				 				
NET OPERATING LOSS	  	$	(28	)	 	$	(8	)	 	$	(9	)	 	$	(12	)	 	$	(57	)	 	$	(6	)	 	$	(24	)	 	$	(27	)	 	$	(19	)	 	$	(76	)	

38

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT

 

 

 

 

 
HISTORICAL INFORMATION
 
39

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Combined Statement of Earnings by Segment
(Dollar amounts in millions)

Three months ended December 31, 2004
	 	Protection
Segment
	 	RI&I
Segment
	 	Mortgage
Segment
	 	Corporate
Segment
	 	 	Affinity
Segment
	 	Combined
	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	1,094	 	$	277	 	$	213	 	$	22	 	 	$	—  	 	$	1,606	 	
Net investment income	 	 	311	 	 	417	 	 	68	 	 	29	 	 	 	—  	 	 	825	 	
Net realized investment gains	 	 	—  	 	 	—  	 	 	—  	 	 	(1	)	 	 	—  	 	 	(1	)	
Policy fees and other Income	 	 	102	 	 	58	 	 	8	 	 	44	 	 	 	—  	 	 	212	 	
 	 			 			 			 				 			 				
Total revenues	 	 	1,507	 	 	752	 	 	289	 	 	94	 	 	 	—  	 	 	2,642	 	
 	 			 			 			 				 			 				
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	705	 	 	363	 	 	53	 	 	8	 	 	 	—  	 	 	1,129	 	
Interest credited	 	 	91	 	 	253	 	 	—  	 	 	—  	 	 	 	—  	 	 	344	 	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	279	 	 	48	 	 	69	 	 	33	 	 	 	—  	 	 	429	 	
Amortization of deferred acquisition costs and intangibles	 	 	208	 	 	34	 	 	16	 	 	4	 	 	 	—  	 	 	262	 	
Interest expense	 	 	6	 	 	—  	 	 	—  	 	 	57	 	 	 	—  	 	 	63	 	
 	 			 			 			 				 			 				
Total benefits and expenses	 	 	1,289	 	 	698	 	 	138	 	 	102	 	 	 	—  	 	 	2,227	 	
 	 			 			 			 				 			 				
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	 	 	218	 	 	54	 	 	151	 	 	(8	)	 	 	—  	 	 	415	 	
 	 			 			 			 				 			 				
Provision for income taxes	 	 	78	 	 	19	 	 	44	 	 	(72	)	 	 	—  	 	 	69	 	
 	 			 			 			 				 			 				
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	 	$	140	 	$	35	 	$	107	 	$	64	 	 	$	—  	 	$	346	 	

																					
Three months ended December 31, 2003
	 	Protection
Segment
	 	RI&I
Segment
	 	Mortgage
Segment
	 	Corporate
Segment
	 	 	Affinity
Segment
	 	 	Combined
	
REVENUES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	1,181	 	$	303	 	$	194	 	$	31	 	 	$	57	 	 	$	1,766	
Net investment income	 	 	305	 	 	630	 	 	58	 	 	25	 	 	 	13	 	 	 	1,031	
Realized investment losses	 	 	—  	 	 	—  	 	 	—  	 	 	39	 	 	 	—  	 	 	 	39	
Policyholder fees and other Income	 	 	93	 	 	60	 	 	10	 	 	2	 	 	 	65	 	 	 	230	
 	 			 			 			 				 				 			
Total Revenue	 	 	1,579	 	 	993	 	 	262	 	 	97	 	 	 	135	 	 	 	3,066	
 	 			 			 			 				 				 			
BENEFITS AND EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and changes in policy reserves	 	 	805	 	 	510	 	 	46	 	 	43	 	 	 	60	 	 	 	1,464	
Interest credited	 	 	90	 	 	312	 	 	—  	 	 	—  	 	 	 	—  	 	 	 	402	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	214	 	 	76	 	 	74	 	 	15	 	 	 	48	 	 	 	427	
Amortization of deferred acquisition costs and intangibles	 	 	312	 	 	57	 	 	11	 	 	7	 	 	 	29	 	 	 	416	
Interest expense	 	 	2	 	 	—  	 	 	—  	 	 	44	 	 	 	—  	 	 	 	46	
 	 			 			 			 				 				 			
Total benefits and expenses	 	 	1,423	 	 	955	 	 	131	 	 	109	 	 	 	137	 	 	 	2,755	
 	 			 			 			 				 				 			
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	 	 	156	 	 	38	 	 	131	 	 	(12	)	 	 	(2	)	 	 	311	
 	 			 			 			 				 				 			
Provision for income taxes	 	 	61	 	 	15	 	 	54	 	 	(36	)	 	 	(3	)	 	 	91	
 	 			 			 			 				 				 			
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	 	$	95	 	$	23	 	$	77	 	$	24	 	 	$	1	 	 	$	220	

40

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Combined Statement of Earnings by Segment
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	 	Protection
Segment
	 	RI&I
Segment
	 	Mortgage
Segment
	 	Corporate
Segment
	 	 	Affinity
Segment
	 	 	Combined
	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	4,481	 	$	1,094	 	$	800	 	$	96	 	 	$	88	 	 	$	6,559	
Net investment income	 	 	1,224	 	 	1,996	 	 	254	 	 	148	 	 	 	26	 	 	 	3,648	
Net realized investment gains	 	 	—  	 	 	—  	 	 	—  	 	 	26	 	 	 	—  	 	 	 	26	
Policy fees and other Income	 	 	359	 	 	271	 	 	36	 	 	54	 	 	 	104	 	 	 	824	
 	 			 			 			 				 				 			
Total revenues	 	 	6,064	 	 	3,361	 	 	1,090	 	 	324	 	 	 	218	 	 	 	11,057	
 	 			 			 			 				 				 			
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	2,890	 	 	1,633	 	 	165	 	 	36	 	 	 	80	 	 	 	4,804	
Interest credited	 	 	362	 	 	1,070	 	 	—  	 	 	—  	 	 	 	—  	 	 	 	1,432	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	1,094	 	 	250	 	 	262	 	 	83	 	 	 	123	 	 	 	1,812	
Amortization of deferred acquisition costs and intangibles	 	 	869	 	 	170	 	 	51	 	 	17	 	 	 	47	 	 	 	1,154	
Interest expense	 	 	15	 	 	1	 	 	—  	 	 	201	 	 	 	—  	 	 	 	217	
 	 			 			 			 				 				 			
Total benefits and expenses	 	 	5,230	 	 	3,124	 	 	478	 	 	337	 	 	 	250	 	 	 	9,419	
 	 			 			 			 				 				 			
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	 	 	834	 	 	237	 	 	612	 	 	(13	)	 	 	(32	)	 	 	1,638	
 	 			 			 			 				 				 			
Provision for income taxes	 	 	306	 	 	84	 	 	186	 	 	(65	)	 	 	(18	)	 	 	493	
 	 			 			 			 				 				 			
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	 	$	528	 	$	153	 	$	426	 	$	52	 	 	$	(14	)	 	$	1,145	

																				
Twelve months ended December 31, 2003
	 	Protection
Segment
	 	RI&I
Segment
	 	Mortgage
Segment
	 	Corporate
Segment
	 	 	Affinity
Segment
	 	Combined
	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	4,588	 	$	1,049	 	$	716	 	$	110	 	 	$	244	 	$	6,707	
Net investment income	 	 	1,199	 	 	2,511	 	 	218	 	 	61	 	 	 	62	 	 	4,051	
Net realized investment gains	 	 	—  	 	 	—  	 	 	—  	 	 	10	 	 	 	—  	 	 	10	
Policy fees and other Income	 	 	356	 	 	243	 	 	48	 	 	8	 	 	 	260	 	 	915	
 	 			 			 			 				 			 			
Total revenues	 	 	6,143	 	 	3,803	 	 	982	 	 	189	 	 	 	566	 	 	11,683	
 	 			 			 			 				 			 			
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	2,997	 	 	1,886	 	 	115	 	 	76	 	 	 	196	 	 	5,270	
Interest credited	 	 	365	 	 	1,259	 	 	—  	 	 	—  	 	 	 	—  	 	 	1,624	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	1,019	 	 	239	 	 	299	 	 	115	 	 	 	244	 	 	1,916	
Amortization of deferred acquisition costs and intangibles	 	 	1,001	 	 	190	 	 	37	 	 	18	 	 	 	105	 	 	1,351	
Interest expense	 	 	3	 	 	—  	 	 	—  	 	 	137	 	 	 	—  	 	 	140	
 	 			 			 			 				 			 			
Total benefits and expenses	 	 	5,385	 	 	3,574	 	 	451	 	 	346	 	 	 	545	 	 	10,301	
 	 			 			 			 				 			 			
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND ACCOUNTING CHANGE	 	 	758	 	 	229	 	 	531	 	 	(157	)	 	 	21	 	 	1,382	
 	 			 			 			 				 			 			
Provision for income taxes	 	 	271	 	 	78	 	 	162	 	 	(103	)	 	 	5	 	 	413	
 	 			 			 			 				 			 			
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE	 	$	487	 	$	151	 	$	369	 	$	(54	)	 	$	16	 	$	969	

41

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Protection
(Dollar amounts in millions)

Three months ended December 31, 2004
	  	Life
	  	Long Term
Care
	  	Payment
Protection Ins.
	  	Group
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	192	  	$	396	  	$	347	  	$	159	  	$	1,094	
Net investment income	  	 	115	  	 	158	  	 	27	  	 	11	  	 	311	
Policy fees and other income	  	 	93	  	 	2	  	 	2	  	 	5	  	 	102	
 	  			  			  			  			  			
Total revenues	  	 	400	  	 	556	  	 	376	  	 	175	  	 	1,507	
 	  			  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	166	  	 	378	  	 	51	  	 	110	  	 	705	
Interest credited	  	 	60	  	 	31	  	 	—  	  	 	—  	  	 	91	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	27	  	 	63	  	 	140	  	 	49	  	 	279	
Amortization of deferred acquisition costs and intangibles	  	 	37	  	 	13	  	 	149	  	 	9	  	 	208	
Interest expense	  	 	6	  	 	—  	  	 	—  	  	 	—  	  	 	6	
 	  			  			  			  			  			
Total benefits and expenses	  	 	296	  	 	485	  	 	340	  	 	168	  	 	1,289	
 	  			  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	104	  	 	71	  	 	36	  	 	7	  	 	218	
 	  			  			  			  			  			
Provision for income taxes	  	 	37	  	 	25	  	 	14	  	 	2	  	 	78	
 	  			  			  			  			  			
SEGMENT NET EARNINGS	  	$	67	  	$	46	  	$	22	  	$	5	  	$	140	

																	
Three months ended December 31, 2003
	  	Life
	  	Long Term
Care
	  	Payment
Protection Ins.
	 	 	Group
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	177	  	$	473	  	$	378	 	 	$	153	  	$	1,181	
Net investment income	  	 	113	  	 	164	  	 	19	 	 	 	9	  	 	305	
Policy fees and other income	  	 	78	  	 	4	  	 	5	 	 	 	6	  	 	93	
 	  			  			  				 			  			
Total revenues	  	 	368	  	 	641	  	 	402	 	 	 	168	  	 	1,579	
 	  			  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	166	  	 	429	  	 	106	 	 	 	104	  	 	805	
Interest credited	  	 	63	  	 	27	  	 	—  	 	 	 	—  	  	 	90	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	32	  	 	82	  	 	51	 	 	 	49	  	 	214	
Amortization of deferred acquisition costs and intangibles	  	 	26	  	 	29	  	 	249	 	 	 	8	  	 	312	
Interest expense	  	 	2	  	 	—  	  	 	—  	 	 	 	—  	  	 	2	
 	  			  			  				 			  			
Total benefits and expenses	  	 	289	  	 	567	  	 	406	 	 	 	161	  	 	1,423	
 	  			  			  				 			  			
EARNINGS (LOSS) BEFORE INCOME TAXES	  	 	79	  	 	74	  	 	(4	)	 	 	7	  	 	156	
 	  			  			  				 			  			
Provision for income taxes	  	 	29	  	 	28	  	 	1	 	 	 	3	  	 	61	
 	  			  			  				 			  			
SEGMENT NET EARNINGS (LOSS)	  	$	50	  	$	46	  	$	(5	)	 	$	4	  	$	95	

42

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Protection
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	  	Life
	  	Long Term
Care
	  	Payment
Protection Ins.
	  	Group
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	759	  	$	1,672	  	$	1,427	  	$	623	  	$	4,481	
Net investment income	  	 	444	  	 	631	  	 	106	  	 	43	  	 	1,224	
Policy fees and other income	  	 	315	  	 	8	  	 	16	  	 	20	  	 	359	
 	  			  			  			  			  			
Total revenues	  	 	1,518	  	 	2,311	  	 	1,549	  	 	686	  	 	6,064	
 	  			  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	633	  	 	1,565	  	 	263	  	 	429	  	 	2,890	
Interest credited	  	 	242	  	 	119	  	 	—  	  	 	1	  	 	362	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	117	  	 	274	  	 	527	  	 	176	  	 	1,094	
Amortization of deferred acquisition costs and intangibles	  	 	125	  	 	85	  	 	625	  	 	34	  	 	869	
Interest expense	  	 	15	  	 	—  	  	 	—  	  	 	—  	  	 	15	
 	  			  			  			  			  			
Total benefits and expenses	  	 	1,132	  	 	2,043	  	 	1,415	  	 	640	  	 	5,230	
 	  			  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	386	  	 	268	  	 	134	  	 	46	  	 	834	
 	  			  			  			  			  			
Provision for income taxes	  	 	141	  	 	96	  	 	53	  	 	16	  	 	306	
 	  			  			  			  			  			
SEGMENT NET EARNINGS	  	$	245	  	$	172	  	$	81	  	$	30	  	$	528	

																
Twelve months ended December 31, 2003
	  	Life
	  	Long Term
Care
	  	Payment
Protection Ins.
	  	Group
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	698	  	$	1,774	  	$	1,508	  	$	608	  	$	4,588	
Net investment income	  	 	443	  	 	621	  	 	95	  	 	40	  	 	1,199	
Policy fees and other income	  	 	302	  	 	13	  	 	12	  	 	29	  	 	356	
 	  			  			  			  			  			
Total revenues	  	 	1,443	  	 	2,408	  	 	1,615	  	 	677	  	 	6,143	
 	  			  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	561	  	 	1,650	  	 	376	  	 	410	  	 	2,997	
Interest credited	  	 	257	  	 	108	  	 	—  	  	 	—  	  	 	365	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	143	  	 	292	  	 	409	  	 	175	  	 	1,019	
Amortization of deferred acquisition costs and intangibles	  	 	145	  	 	88	  	 	740	  	 	28	  	 	1,001	
Interest expense	  	 	3	  	 	—  	  	 	—  	  	 	—  	  	 	3	
 	  			  			  			  			  			
Total benefits and expenses	  	 	1,109	  	 	2,138	  	 	1,525	  	 	613	  	 	5,385	
 	  			  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	334	  	 	270	  	 	90	  	 	64	  	 	758	
 	  			  			  			  			  			
Provision for income taxes	  	 	123	  	 	99	  	 	26	  	 	23	  	 	271	
 	  			  			  			  			  			
SEGMENT NET EARNINGS	  	$	211	  	$	171	  	$	64	  	$	41	  	$	487	

43

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Retirement Income and Investments
(Dollar amounts in millions)

Three months ended December 31, 2004
	  	Spread Based
Retail
Products
	  	Fee Based
Products
	  	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	277	  	$	—  	  	$	—  	  	$	277	
Net investment income	  	 	319	  	 	4	  	 	94	  	 	417	
Policy fees and other income	  	 	3	  	 	55	  	 	—  	  	 	58	
 	  			  			  			  			
Total revenues	  	 	599	  	 	59	  	 	94	  	 	752	
 	  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	361	  	 	2	  	 	—  	  	 	363	
Interest credited	  	 	173	  	 	3	  	 	77	  	 	253	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	19	  	 	28	  	 	1	  	 	48	
Amortization of deferred acquisition costs and intangibles	  	 	27	  	 	7	  	 	—  	  	 	34	
Interest expense	  	 	—  	  	 	—  	  	 	—  	  	 	—  	
 	  			  			  			  			
Total benefits and expenses	  	 	580	  	 	40	  	 	78	  	 	698	
 	  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	19	  	 	19	  	 	16	  	 	54	
 	  			  			  			  			
Provision for income taxes	  	 	10	  	 	3	  	 	6	  	 	19	
 	  			  			  			  			
SEGMENT NET EARNINGS	  	$	9	  	$	16	  	$	10	  	$	35	

													
Three months ended December 31, 2003
	  	Spread Based
Retail
Products
	  	Fee Based
Products
	  	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	303	  	$	—	  	$	—	  	$	303	
Net investment income	  	 	519	  	 	31	  	 	80	  	 	630	
Policy fees and other income	  	 	3	  	 	57	  	 	—  	  	 	60	
 	  			  			  			  			
Total revenues	  	 	825	  	 	88	  	 	80	  	 	993	
 	  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	497	  	 	13	  	 	—  	  	 	510	
Interest credited	  	 	215	  	 	26	  	 	71	  	 	312	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	38	  	 	35	  	 	3	  	 	76	
Amortization of deferred acquisition costs and intangibles	  	 	47	  	 	10	  	 	—  	  	 	57	
Interest expense	  	 	—  	  	 	—  	  	 	—  	  	 	—  	
 	  			  			  			  			
Total benefits and expenses	  	 	797	  	 	84	  	 	74	  	 	955	
 	  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	28	  	 	4	  	 	6	  	 	38	
 	  			  			  			  			
Provision for income taxes	  	 	11	  	 	2	  	 	2	  	 	15	
 	  			  			  			  			
SEGMENT NET EARNINGS	  	$	17	  	$	2	  	$	4	  	$	23	

44

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Retirement Income and Investments
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	  	Spread Based
Retail
Products
	  	Fee Based
Products
	  	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	1,094	  	$	—	  	$	—	  	$	1,094	
Net investment income	  	 	1,604	  	 	60	  	 	332	  	 	1,996	
Policy fees and other income	  	 	14	  	 	257	  	 	—  	  	 	271	
 	  			  			  			  			
Total revenues	  	 	2,712	  	 	317	  	 	332	  	 	3,361	
 	  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	1,613	  	 	20	  	 	—  	  	 	1,633	
Interest credited	  	 	748	  	 	41	  	 	281	  	 	1,070	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	114	  	 	132	  	 	4	  	 	250	
Amortization of deferred acquisition costs and intangibles	  	 	108	  	 	62	  	 	—  	  	 	170	
Interest expense	  	 	1	  	 	—  	  	 	—  	  	 	1	
 	  			  			  			  			
Total benefits and expenses	  	 	2,584	  	 	255	  	 	285	  	 	3,124	
 	  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	128	  	 	62	  	 	47	  	 	237	
 	  			  			  			  			
Provision for income taxes	  	 	49	  	 	18	  	 	17	  	 	84	
 	  			  			  			  			
SEGMENT NET EARNINGS	  	$	79	  	$	44	  	$	30	  	$	153	

														
Twelve months ended December 31, 2003
	  	Spread Based
Retail
Products
	  	Fee Based
Products
	 	 	Spread Based
Institutional
Products
	  	Total
	
REVENUES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	1,049	  	$	—	 	 	$	—	  	$	1,049	
Net investment income	  	 	2,059	  	 	106	 	 	 	346	  	 	2,511	
Policy fees and other income	  	 	14	  	 	229	 	 	 	—  	  	 	243	
 	  			  				 			  			
Total revenues	  	 	3,122	  	 	335	 	 	 	346	  	 	3,803	
 	  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	1,841	  	 	45	 	 	 	—  	  	 	1,886	
Interest credited	  	 	873	  	 	90	 	 	 	296	  	 	1,259	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	126	  	 	108	 	 	 	5	  	 	239	
Amortization of deferred acquisition costs and intangibles	  	 	110	  	 	80	 	 	 	—  	  	 	190	
Interest expense	  	 	—  	  	 	—  	 	 	 	—  	  	 	—  	
 	  			  				 			  			
Total benefits and expenses	  	 	2,950	  	 	323	 	 	 	301	  	 	3,574	
 	  			  				 			  			
EARNINGS BEFORE INCOME TAXES	  	 	172	  	 	12	 	 	 	45	  	 	229	
 	  			  				 			  			
Provision for income taxes	  	 	63	  	 	(1	)	 	 	16	  	 	78	
 	  			  				 			  			
SEGMENT NET EARNINGS	  	$	109	  	$	13	 	 	$	29	  	$	151	

45

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Retirement Income and Investments—Historical Account Values
(Dollar amounts in millions)

 	  	Three months ended December 31,
	 	
 	  	    2004    
	 	 	    2003    
	 	
Spread Based Products 	  	 	 	 	 	 	 	 	
			
Fixed Annuities	  	 	 	 	 	 	 	 	
Account value net of reinsurance, beginning of period	  	$	14,832	 	 	$	14,017	 	
Deposits	  	 	483	 	 	 	331	 	
Interest credited	  	 	154	 	 	 	148	 	
Surrenders, benefits and product charges	  	 	(355	)	 	 	(330	)	
 	  				 				
Account value net of reinsurance, end of period	  	$	15,114	 	 	$	14,166	 	
 	  				 				
Income Annuities	  	 	 	 	 	 	 	 	
Account value net of reinsurance, beginning of period	  	$	5,253	 	 	$	4,896	 	
Premiums and deposits	  	 	208	 	 	 	225	 	
Interest credited	  	 	77	 	 	 	74	 	
Surrenders, benefits and product charges	  	 	(184	)	 	 	(188	)	
 	  				 				
Account value net of reinsurance, end of period	  	$	5,354	 	 	$	5,007	 	
 	  				 				
Structured Settlements	  	 	 	 	 	 	 	 	
Account value, beginning of period	  	$	12,236	 	 	$	11,823	 	
Premiums and deposits	  	 	117	 	 	 	145	 	
Interest credited	  	 	213	 	 	 	215	 	
Surrenders, benefits and product charges	  	 	(243	)	 	 	(166	)	
 	  				 				
Account value, end of period a	  	$	12,323	 	 	$	12,017	 	
 	  				 				
Spread Based Institutional Products 	  	 	 	 	 	 	 	 	
			
GICs and Funding Agreements	  	 	 	 	 	 	 	 	
Account value, beginning of the period	  	$	9,329	 	 	$	10,027	 	
Premiums and deposits	  	 	873	 	 	 	1,153	 	
Interest credited	  	 	77	 	 	 	71	 	
Surrenders and benefits	  	 	(738	)	 	 	(1,723	)	
 	  				 				
Account value, end of period	  	$	9,541	 	 	$	9,528	 	
 	  				 				
Fee Based Products 	  	 	 	 	 	 	 	 	
			
Variable Annuities	  	 	 	 	 	 	 	 	
Account value, beginning of period	  	$	10,979	 	 	$	10,496	 	
Deposits	  	 	255	 	 	 	431	 	
Interest credited and investment performance	  	 	653	 	 	 	438	 	
Surrenders, benefits and product charges	  	 	(388	)	 	 	(461	)	
 	  				 				
Account value, end of period a	  	$	11,499	 	 	$	10,904	 	
 	  				 				
Variable Life Insurance	  	 	 	 	 	 	 	 	
Premiums and deposits	  	$	9	 	 	$	17	 	
Future policy benefits/policy account balances, net of reinsurance	  	 	16	 	 	 	12	 	
Separate account liability	  	 	297	 	 	 	269	 	
Life insurance in force	  	 	3,472	 	 	 	3,636	 	

a	Included in the end of period account values for the 2004 period for structured settlements and variable annuities are $11,834 million and $10,409 million, respectively, that relate to contracts that are reinsured with UFLIC.	
 
46

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Retirement Income and Investments—Historical Account Values by Contract Type
(Dollar amounts in millions)

 	  	2004
	  	2003
	
 	  	Q4
	  	Q3
	  	Q2
	  	Q1
	  	Q4
	  	Q3
	  	Q2
	  	Q1
	
Spread Based Institutional Products	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Guaranteed investment contracts (GICs)	  	$	3,352	  	$	3,412	  	$	3,517	  	$	3,474	  	$	3,586	  	$	3,846	  	$	3,792	  	$	3,795	
Funding agreements backing notes	  	 	3,405	  	 	2,992	  	 	2,844	  	 	2,963	  	 	2,993	  	 	2,632	  	 	2,568	  	 	2,832	
Funding agreements	  	 	2,784	  	 	2,925	  	 	3,024	  	 	3,024	  	 	2,949	  	 	3,549	  	 	3,570	  	 	3,570	
 	  			  			  			  			  			  			  			  			
 	  	$	9,541	  	$	9,329	  	$	9,385	  	$	9,461	  	$	9,528	  	$	10,027	  	$	9,930	  	$	10,197	
 	  			  			  			  			  			  			  			  			
Funding agreements by liquidity provisions:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
7 day	  	$	—  	  	$	50	  	$	100	  	$	100	  	$	100	  	$	100	  	$	100	  	$	100	
30 day	  	 	—  	  	 	150	  	 	200	  	 	350	  	 	350	  	 	650	  	 	650	  	 	650	
90 day	  	 	1,518	  	 	1,610	  	 	1,660	  	 	1,960	  	 	1,985	  	 	2,285	  	 	2,305	  	 	2,305	
180 day	  	 	100	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	—  	
No put	  	 	900	  	 	850	  	 	850	  	 	500	  	 	500	  	 	500	  	 	500	  	 	500	
13 month rolling maturity	  	 	250	  	 	250	  	 	200	  	 	100	  	 	—  	  	 	—  	  	 	—  	  	 	—  	
Accrued interest	  	 	16	  	 	15	  	 	14	  	 	14	  	 	14	  	 	14	  	 	15	  	 	15	
 	  			  			  			  			  			  			  			  			
Total funding agreements	  	$	2,784	  	$	2,925	  	$	3,024	  	$	3,024	  	$	2,949	  	$	3,549	  	$	3,570	  	$	3,570	

47

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Mortgage Insurance
(Dollar amounts in millions)

Three months ended December 31, 2004
	  	U. S.
	  	International
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	
Premiums	  	$	112	  	$	101	  	$	213	
Net investment income	  	 	34	  	 	34	  	 	68	
Policy fees and other income	  	 	3	  	 	5	  	 	8	
 	  			  			  			
Total revenues	  	 	149	  	 	140	  	 	289	
 	  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	39	  	 	14	  	 	53	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	39	  	 	30	  	 	69	
Amortization of deferred acquisition costs and intangibles	  	 	10	  	 	6	  	 	16	
 	  			  			  			
Total benefits and expenses	  	 	88	  	 	50	  	 	138	
 	  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	61	  	 	90	  	 	151	
 	  			  			  			
Provision for income taxes	  	 	11	  	 	33	  	 	44	
 	  			  			  			
SEGMENT NET EARNINGS	  	$	50	  	$	57	  	$	107	

										
Three months ended December 31, 2003
	  	U. S.
	  	International
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	
Premiums	  	$	127	  	$	67	  	$	194	
Net investment income	  	 	31	  	 	27	  	 	58	
Policy fees and other income	  	 	6	  	 	4	  	 	10	
 	  			  			  			
Total revenues	  	 	164	  	 	98	  	 	262	
 	  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	42	  	 	4	  	 	46	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	52	  	 	22	  	 	74	
Amortization of deferred acquisition costs and intangibles	  	 	7	  	 	4	  	 	11	
 	  			  			  			
Total benefits and expenses	  	 	101	  	 	30	  	 	131	
 	  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	63	  	 	68	  	 	131	
 	  			  			  			
Provision for income taxes	  	 	24	  	 	30	  	 	54	
 	  			  			  			
SEGMENT NET EARNINGS	  	$	39	  	$	38	  	$	77	

48

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Mortgage Insurance
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	  	U. S.
	  	International
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	
Premiums	  	$	460	  	$	340	  	$	800	
Net investment income	  	 	132	  	 	122	  	 	254	
Policy fees and other income	  	 	17	  	 	19	  	 	36	
 	  			  			  			
Total revenues	  	 	609	  	 	481	  	 	1,090	
 	  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	127	  	 	38	  	 	165	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	163	  	 	99	  	 	262	
Amortization of deferred acquisition costs and intangibles	  	 	31	  	 	20	  	 	51	
 	  			  			  			
Total benefits and expenses	  	 	321	  	 	157	  	 	478	
 	  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	288	  	 	324	  	 	612	
 	  			  			  			
Provision for income taxes	  	 	64	  	 	122	  	 	186	
 	  			  			  			
SEGMENT NET EARNINGS	  	$	224	  	$	202	  	$	426	

										
Twelve months ended December 31, 2003
	  	U. S.
	  	International
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	
Premiums	  	$	501	  	$	215	  	$	716	
Net investment income	  	 	128	  	 	90	  	 	218	
Policy fees and other income	  	 	36	  	 	12	  	 	48	
 	  			  			  			
Total revenues	  	 	665	  	 	317	  	 	982	
 	  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	99	  	 	16	  	 	115	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	234	  	 	65	  	 	299	
Amortization of deferred acquisition costs and intangibles	  	 	25	  	 	12	  	 	37	
 	  			  			  			
Total benefits and expenses	  	 	358	  	 	93	  	 	451	
 	  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	307	  	 	224	  	 	531	
 	  			  			  			
Provision for income taxes	  	 	82	  	 	80	  	 	162	
 	  			  			  			
SEGMENT NET EARNINGS	  	$	225	  	$	144	  	$	369	

49

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Corporate and Other
(Dollar amounts in millions)

Three months ended December 31, 2004
	    	Total
	 	
REVENUES	    	 	 	 	
Premiums	    	$	22	 	
Net investment income	    	 	29	 	
Net realized investment losses	    	 	(1	)	
Policy fees and other income	    	 	44	 	
 	    				
Total revenues	    	 	94	 	
 	    				
BENEFITS AND EXPENSES	    	 	 	 	
Benefits and other changes in policy reserves	    	 	8	 	
Interest credited	    	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	    	 	33	 	
Amortization of deferred acquisition costs and intangibles	    	 	4	 	
Interest expense	    	 	57	 	
 	    				
Total benefits and expenses	    	 	102	 	
 	    				
LOSS BEFORE INCOME TAXES	    	 	(8	)	
 	    				
Benefit from income taxes	    	 	(72	)	
 	    				
SEGMENT NET EARNINGS	    	$	64	 	

					
Three months ended December 31, 2003
	    	Total
	 	
REVENUES	    	 	 	 	
Premiums	    	$	31	 	
Net investment income	    	 	25	 	
Net realized investment gains	    	 	39	 	
Policy fees and other income	    	 	2	 	
 	    				
Total revenues	    	 	97	 	
 	    				
BENEFITS AND EXPENSES	    	 	 	 	
Benefits and other changes in policy reserves	    	 	43	 	
Interest credited	    	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	    	 	15	 	
Amortization of deferred acquisition costs and intangibles	    	 	7	 	
Interest expense	    	 	44	 	
 	    				
Total benefits and expenses	    	 	109	 	
 	    				
LOSS BEFORE INCOME TAXES	    	 	(12	)	
 	    				
Benefit from income taxes	    	 	(36	)	
 	    				
SEGMENT NET EARNINGS	    	$	24	 	

50

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Corporate and Other
(Dollar amounts in millions)

Twelve months ended December 31, 2004
	    	Total
	 	
REVENUES	    	 	 	 	
Premiums	    	$	96	 	
Net investment income	    	 	148	 	
Net realized investment gains	    	 	26	 	
Policy fees and other income	    	 	54	 	
 	    				
Total revenues	    	 	324	 	
 	    				
BENEFITS AND EXPENSES	    	 	 	 	
Benefits and other changes in policy reserves	    	 	36	 	
Interest credited	    	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	    	 	83	 	
Amortization of deferred acquisition costs and intangibles	    	 	17	 	
Interest expense	    	 	201	 	
 	    				
Total benefits and expenses	    	 	337	 	
 	    				
LOSS BEFORE INCOME TAXES	    	 	(13	)	
 	    				
Benefit from income taxes	    	 	(65	)	
 	    				
SEGMENT NET EARNINGS	    	$	52	 	

					
Twelve months ended December 31, 2003
	    	Total
	 	
REVENUES	    	 	 	 	
Premiums	    	$	110	 	
Net investment loss	    	 	61	 	
Net realized investment loss	    	 	10	 	
Policy fees and other income	    	 	8	 	
 	    				
Total revenues	    	 	189	 	
 	    				
BENEFITS AND EXPENSES	    	 	 	 	
Benefits and other changes in policy reserves	    	 	76	 	
Interest credited	    	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	    	 	115	 	
Amortization of deferred acquisition costs and intangibles	    	 	18	 	
Interest expense	    	 	137	 	
 	    				
Total benefits and expenses	    	 	346	 	
 	    				
LOSS BEFORE INCOME TAXES	    	 	(157	)	
 	    				
Benefit from income taxes	    	 	(103	)	
 	    				
SEGMENT NET LOSS	    	$	(54	)	

51

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Combined Net Earnings
(Dollar amounts in millions)

 	 	2004
	 	2003
	
 	 	Q4
	 	 	Q3
	 	Q2
	 	Q1
	 	Total
	 	Q4
	 	Q3
	 	 	Q2
	 	 	Q1
	 	Total
	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	1,606	 	 	$	1,523	 	$	1,708	 	$	1,722	 	$	6,559	 	$	1,766	 	$	1,664	 	 	$	1,690	 	 	$	1,587	 	$	6,707	
Net investment income	 	 	825	 	 	 	785	 	 	1,001	 	 	1,037	 	 	3,648	 	 	1,031	 	 	1,033	 	 	 	995	 	 	 	992	 	 	4,051	
Net realized investment gains (losses)	 	 	(1	)	 	 	3	 	 	8	 	 	16	 	 	26	 	 	39	 	 	(13	)	 	 	(37	)	 	 	21	 	 	10	
Policy fees and other income	 	 	212	 	 	 	159	 	 	204	 	 	249	 	 	824	 	 	230	 	 	232	 	 	 	219	 	 	 	234	 	 	915	
 	 				 			 			 			 			 			 				 				 			 			
Total revenues	 	 	2,642	 	 	 	2,470	 	 	2,921	 	 	3,024	 	 	11,057	 	 	3,066	 	 	2,916	 	 	 	2,867	 	 	 	2,834	 	 	11,683	
 	 				 			 			 			 			 			 				 				 			 			
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	1,129	 	 	 	1,034	 	 	1,290	 	 	1,351	 	 	4,804	 	 	1,464	 	 	1,345	 	 	 	1,205	 	 	 	1,256	 	 	5,270	
Interest credited	 	 	344	 	 	 	328	 	 	364	 	 	396	 	 	1,432	 	 	402	 	 	407	 	 	 	406	 	 	 	409	 	 	1,624	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	429	 	 	 	399	 	 	476	 	 	508	 	 	1,812	 	 	427	 	 	525	 	 	 	476	 	 	 	488	 	 	1,916	
Amortization of deferred acquisition costs and intangibles	 	 	262	 	 	 	242	 	 	305	 	 	345	 	 	1,154	 	 	416	 	 	276	 	 	 	359	 	 	 	300	 	 	1,351	
Interest expense	 	 	63	 	 	 	60	 	 	47	 	 	47	 	 	217	 	 	46	 	 	40	 	 	 	27	 	 	 	27	 	 	140	
 	 				 			 			 			 			 			 				 				 			 			
Total benefits and expenses	 	 	2,227	 	 	 	2,063	 	 	2,482	 	 	2,647	 	 	9,419	 	 	2,755	 	 	2,593	 	 	 	2,473	 	 	 	2,480	 	 	10,301	
 	 				 			 			 			 			 			 				 				 			 			
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	 	 	415	 	 	 	407	 	 	439	 	 	377	 	 	1,638	 	 	311	 	 	323	 	 	 	394	 	 	 	354	 	 	1,382	
 	 				 			 			 			 			 			 				 				 			 			
Provision for income taxes	 	 	69	 	 	 	136	 	 	171	 	 	117	 	 	493	 	 	91	 	 	93	 	 	 	129	 	 	 	100	 	 	413	
 	 				 			 			 			 			 			 				 				 			 			
NET EARNINGS FROM CONTINUING OPERATIONS	 	$	346	 	 	$	271	 	$	268	 	$	260	 	$	1,145	 	$	220	 	$	230	 	 	$	265	 	 	$	254	 	$	969	

52

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Protection
(Dollar amounts in millions)

 	 	2004
	 	2003
	
 	 	Q4
	 	Q3
	 	Q2
	 	Q1
	 	Total
	 	Q4
	 	Q3
	 	Q2
	 	Q1
	 	Total
	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	 	$	1,094	 	$	1,085	 	$	1,132	 	$	1,170	 	$	4,481	 	$	1,181	 	$	1,150	 	$	1,175	 	$	1,082	 	$	4,588	
Net investment income	 	 	311	 	 	298	 	 	306	 	 	309	 	 	1,224	 	 	305	 	 	298	 	 	297	 	 	299	 	 	1,199	
Policy fees and other income	 	 	102	 	 	91	 	 	79	 	 	87	 	 	359	 	 	93	 	 	91	 	 	81	 	 	91	 	 	356	
 	 			 			 			 			 			 			 			 			 			 			
Total Revenues	 	 	1,507	 	 	1,474	 	 	1,517	 	 	1,566	 	 	6,064	 	 	1,579	 	 	1,539	 	 	1,553	 	 	1,472	 	 	6,143	
 	 			 			 			 			 			 			 			 			 			 			
BENEFITS AND EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	 	 	705	 	 	698	 	 	727	 	 	760	 	 	2,890	 	 	805	 	 	774	 	 	715	 	 	703	 	 	2,997	
Interest credited	 	 	91	 	 	91	 	 	90	 	 	90	 	 	362	 	 	90	 	 	92	 	 	92	 	 	91	 	 	365	
Underwriting, acquisition and insurance expenses, net of deferrals	 	 	279	 	 	267	 	 	272	 	 	276	 	 	1,094	 	 	214	 	 	286	 	 	252	 	 	267	 	 	1,019	
Amortization of deferred acquisition costs and intangibles	 	 	208	 	 	198	 	 	219	 	 	244	 	 	869	 	 	312	 	 	185	 	 	294	 	 	210	 	 	1,001	
Interest expense	 	 	6	 	 	4	 	 	2	 	 	3	 	 	15	 	 	2	 	 	1	 	 	—  	 	 	—  	 	 	3	
 	 			 			 			 			 			 			 			 			 			 			
Total benefits and expenses	 	 	1,289	 	 	1,258	 	 	1,310	 	 	1,373	 	 	5,230	 	 	1,423	 	 	1,338	 	 	1,353	 	 	1,271	 	 	5,385	
 	 			 			 			 			 			 			 			 			 			 			
EARNINGS BEFORE INCOME TAXES	 	 	218	 	 	216	 	 	207	 	 	193	 	 	834	 	 	156	 	 	201	 	 	200	 	 	201	 	 	758	
 	 			 			 			 			 			 			 			 			 			 			
Provision for income taxes	 	 	78	 	 	81	 	 	78	 	 	69	 	 	306	 	 	61	 	 	71	 	 	69	 	 	70	 	 	271	
 	 			 			 			 			 			 			 			 			 			 			
SEGMENT NET EARNINGS	 	$	140	 	$	135	 	$	129	 	$	124	 	$	528	 	$	95	 	$	130	 	$	131	 	$	131	 	$	487	

53

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Retirement Income and Investments
(Dollar amounts in millions)

 	  	2004
	  	2003
	
 	  	Q4
	  	Q3
	  	Q2
	  	Q1
	  	Total
	  	Q4
	  	Q3
	  	Q2
	  	Q1
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Premiums	  	$	277	  	$	219	  	$	321	  	$	277	  	$	1,094	  	$	303	  	$	237	  	$	251	  	$	258	  	$	1,049	
Net investment income	  	 	417	  	 	393	  	 	569	  	 	617	  	 	1,996	  	 	630	  	 	618	  	 	624	  	 	639	  	 	2,511	
Policy fees and other income	  	 	58	  	 	52	  	 	76	  	 	85	  	 	271	  	 	60	  	 	61	  	 	58	  	 	64	  	 	243	
 	  			  			  			  			  			  			  			  			  			  			
Total revenues	  	 	752	  	 	664	  	 	966	  	 	979	  	 	3,361	  	 	993	  	 	916	  	 	933	  	 	961	  	 	3,803	
 	  			  			  			  			  			  			  			  			  			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	363	  	 	281	  	 	495	  	 	494	  	 	1,633	  	 	510	  	 	463	  	 	454	  	 	459	  	 	1,886	
Interest credited	  	 	253	  	 	237	  	 	274	  	 	306	  	 	1,070	  	 	312	  	 	315	  	 	314	  	 	318	  	 	1,259	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	48	  	 	59	  	 	68	  	 	75	  	 	250	  	 	76	  	 	45	  	 	53	  	 	65	  	 	239	
Amortization of deferred acquisition costs and intangibles	  	 	34	  	 	25	  	 	54	  	 	57	  	 	170	  	 	57	  	 	49	  	 	30	  	 	54	  	 	190	
Interest expense	  	 	—  	  	 	—  	  	 	1	  	 	—  	  	 	1	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	—  	
 	  			  			  			  			  			  			  			  			  			  			
Total benefits and expenses	  	 	698	  	 	602	  	 	892	  	 	932	  	 	3,124	  	 	955	  	 	872	  	 	851	  	 	896	  	 	3,574	
 	  			  			  			  			  			  			  			  			  			  			
EARNINGS BEFORE INCOME TAXES	  	 	54	  	 	62	  	 	74	  	 	47	  	 	237	  	 	38	  	 	44	  	 	82	  	 	65	  	 	229	
 	  			  			  			  			  			  			  			  			  			  			
Provision for income taxes	  	 	19	  	 	22	  	 	27	  	 	16	  	 	84	  	 	15	  	 	13	  	 	27	  	 	23	  	 	78	
 	  			  			  			  			  			  			  			  			  			  			
SEGMENT NET EARNINGS	  	$	35	  	$	40	  	$	47	  	$	31	  	$	153	  	$	23	  	$	31	  	$	55	  	$	42	  	$	151	

54

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Mortgage Insurance
(Dollar amounts in millions)

 	  	2004
	  	2003
	
 	  	Q4
	  	Q3
	  	Q2
	  	Q1
	  	Total
	  	Q4
	  	Q3
	  	Q2
	 	 	Q1
	  	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	  	 	 	
Premiums	  	$	213	  	$	197	  	$	195	  	$	195	  	$	800	  	$	194	  	$	182	  	$	175	 	 	$	165	  	$	716	
Net investment income	  	 	68	  	 	65	  	 	61	  	 	60	  	 	254	  	 	58	  	 	56	  	 	54	 	 	 	50	  	 	218	
Policy fees and other income	  	 	8	  	 	10	  	 	10	  	 	8	  	 	36	  	 	10	  	 	13	  	 	13	 	 	 	12	  	 	48	
 	  			  			  			  			  			  			  			  				 			  			
Total revenues	  	 	289	  	 	272	  	 	266	  	 	263	  	 	1,090	  	 	262	  	 	251	  	 	242	 	 	 	227	  	 	982	
 	  			  			  			  			  			  			  			  				 			  			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	  	 	 	
Benefits and other changes in policy reserves	  	 	53	  	 	46	  	 	27	  	 	39	  	 	165	  	 	46	  	 	44	  	 	(8	)	 	 	33	  	 	115	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	69	  	 	64	  	 	65	  	 	64	  	 	262	  	 	74	  	 	74	  	 	81	 	 	 	70	  	 	299	
Amortization of deferred acquisition costs and intangibles	  	 	16	  	 	12	  	 	11	  	 	12	  	 	51	  	 	11	  	 	10	  	 	8	 	 	 	8	  	 	37	
 	  			  			  			  			  			  			  			  				 			  			
Total benefits and expenses	  	 	138	  	 	122	  	 	103	  	 	115	  	 	478	  	 	131	  	 	128	  	 	81	 	 	 	111	  	 	451	
 	  			  			  			  			  			  			  			  				 			  			
EARNINGS BEFORE INCOME TAXES	  	 	151	  	 	150	  	 	163	  	 	148	  	 	612	  	 	131	  	 	123	  	 	161	 	 	 	116	  	 	531	
 	  			  			  			  			  			  			  			  				 			  			
Provision for income taxes	  	 	44	  	 	48	  	 	49	  	 	45	  	 	186	  	 	54	  	 	30	  	 	47	 	 	 	31	  	 	162	
 	  			  			  			  			  			  			  			  				 			  			
SEGMENT NET EARNINGS	  	$	107	  	$	102	  	$	114	  	$	103	  	$	426	  	$	77	  	$	93	  	$	114	 	 	$	85	  	$	369	

55

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Corporate and Other
(Dollar amounts in millions)

 	  	2004
	 	 	2003
	 	
 	  	Q4
	 	 	Q3
	 	 	Q2
	 	 	Q1
	 	 	Total
	 	 	Q4
	 	 	Q3
	 	 	Q2
	 	 	Q1
	 	 	Total
	 	
REVENUES:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Premiums	  	$	22	 	 	$	22	 	 	$	26	 	 	$	26	 	 	$	96	 	 	$	31	 	 	$	29	 	 	$	26	 	 	$	24	 	 	$	110	 	
Net investment income (loss)	  	 	29	 	 	 	29	 	 	 	57	 	 	 	33	 	 	 	148	 	 	 	25	 	 	 	43	 	 	 	3	 	 	 	(10	)	 	 	61	 	
Net realized investment gains (losses)	  	 	(1	)	 	 	3	 	 	 	8	 	 	 	16	 	 	 	26	 	 	 	39	 	 	 	(13	)	 	 	(37	)	 	 	21	 	 	 	10	 	
Policy fees and other income	  	 	44	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	54	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	8	 	
 	  				 				 				 				 				 				 				 				 				 				
Total revenues	  	 	94	 	 	 	60	 	 	 	93	 	 	 	77	 	 	 	324	 	 	 	97	 	 	 	61	 	 	 	(6	)	 	 	37	 	 	 	189	 	
 	  				 				 				 				 				 				 				 				 				 				
BENEFITS AND EXPENSES	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	8	 	 	 	9	 	 	 	10	 	 	 	9	 	 	 	36	 	 	 	43	 	 	 	12	 	 	 	12	 	 	 	9	 	 	 	76	 	
Interest credited	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	33	 	 	 	9	 	 	 	22	 	 	 	19	 	 	 	83	 	 	 	15	 	 	 	55	 	 	 	23	 	 	 	22	 	 	 	115	 	
Amortization of deferred acquisition costs and intangibles	  	 	4	 	 	 	7	 	 	 	3	 	 	 	3	 	 	 	17	 	 	 	7	 	 	 	5	 	 	 	3	 	 	 	3	 	 	 	18	 	
Interest expense	  	 	57	 	 	 	56	 	 	 	44	 	 	 	44	 	 	 	201	 	 	 	44	 	 	 	39	 	 	 	27	 	 	 	27	 	 	 	137	 	
 	  				 				 				 				 				 				 				 				 				 				
Total benefits and expenses	  	 	102	 	 	 	81	 	 	 	79	 	 	 	75	 	 	 	337	 	 	 	109	 	 	 	111	 	 	 	65	 	 	 	61	 	 	 	346	 	
 	  				 				 				 				 				 				 				 				 				 				
EARNINGS (LOSS) BEFORE INCOME TAXES	  	 	(8	)	 	 	(21	)	 	 	14	 	 	 	2	 	 	 	(13	)	 	 	(12	)	 	 	(50	)	 	 	(71	)	 	 	(24	)	 	 	(157	)	
 	  				 				 				 				 				 				 				 				 				 				
Provision (benefit) for income taxes	  	 	(72	)	 	 	(15	)	 	 	24	 	 	 	(2	)	 	 	(65	)	 	 	(36	)	 	 	(22	)	 	 	(25	)	 	 	(20	)	 	 	(103	)	
 	  				 				 				 				 				 				 				 				 				 				
SEGMENT NET EARNINGS (LOSS)	  	$	64	 	 	$	(6	)	 	$	(10	)	 	$	4	 	 	$	52	 	 	$	24	 	 	$	(28	)	 	$	(46	)	 	$	(4	)	 	$	(54	)	

56

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Net Earnings—Affinity
(Dollar amounts in millions)

 	  	2004
	 	 	2003
	
 	  	Q4
	  	Q3
	  	Q2
	 	 	Q1
	 	 	Total
	 	 	Q4
	 	 	Q3
	  	Q2
	  	Q1
	 	 	Total
	
REVENUES:	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
Premiums	  	$	—  	  	$	—  	  	$	34	 	 	$	54	 	 	$	88	 	 	$	57	 	 	$	66	  	$	63	  	$	58	 	 	$	244	
Net investment income	  	 	—  	  	 	—  	  	 	8	 	 	 	18	 	 	 	26	 	 	 	13	 	 	 	18	  	 	17	  	 	14	 	 	 	62	
Realized investment gains	  	 	—  	  	 	—  	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	  	 	—  	  	 	—  	 	 	 	—  	
Policy fees and other income	  	 	—  	  	 	—  	  	 	37	 	 	 	67	 	 	 	104	 	 	 	65	 	 	 	65	  	 	65	  	 	65	 	 	 	260	
 	  			  			  				 				 				 				 			  			  				 			
Total revenues	  	 	—  	  	 	—  	  	 	79	 	 	 	139	 	 	 	218	 	 	 	135	 	 	 	149	  	 	145	  	 	137	 	 	 	566	
 	  			  			  				 				 				 				 			  			  				 			
BENEFITS AND EXPENSES:	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
Benefits and other changes in policy reserves	  	 	—  	  	 	—  	  	 	31	 	 	 	49	 	 	 	80	 	 	 	60	 	 	 	52	  	 	32	  	 	52	 	 	 	196	
Underwriting, acquisition and insurance expenses, net of deferrals	  	 	—  	  	 	—  	  	 	49	 	 	 	74	 	 	 	123	 	 	 	48	 	 	 	65	  	 	67	  	 	64	 	 	 	244	
Amortization of deferred acquisition costs and intangibles	  	 	—  	  	 	—  	  	 	18	 	 	 	29	 	 	 	47	 	 	 	29	 	 	 	27	  	 	24	  	 	25	 	 	 	105	
 	  			  			  				 				 				 				 			  			  				 			
Total benefits and expenses	  	 	—  	  	 	—  	  	 	98	 	 	 	152	 	 	 	250	 	 	 	137	 	 	 	144	  	 	123	  	 	141	 	 	 	545	
 	  			  			  				 				 				 				 			  			  				 			
(LOSS) EARNINGS BEFORE INCOME TAXES	  	 	—  	  	 	—  	  	 	(19	)	 	 	(13	)	 	 	(32	)	 	 	(2	)	 	 	5	  	 	22	  	 	(4	)	 	 	21	
 	  			  			  				 				 				 				 			  			  				 			
Provision (benefit) for income taxes	  	 	—  	  	 	—  	  	 	(7	)	 	 	(11	)	 	 	(18	)	 	 	(3	)	 	 	1	  	 	11	  	 	(4	)	 	 	5	
 	  			  			  				 				 				 				 			  			  				 			
SEGMENT NET (LOSS) EARNINGS	  	$	—  	  	$	—  	  	$	(12	)	 	$	(2	)	 	$	(14	)	 	$	1	 	 	$	4	  	$	11	  	$	—  	 	 	$	16	

57

 
 
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58

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT

 

 

 

 

 
ADDITIONAL
STATISTICAL DATA
 
59

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Deferred Acquisition Costs
(Dollar amounts in millions)

Deferred Acquisition Costs—Combined
	  	Total
	 	 	Protection
Segment
	 	 	RI&I
Segment
	 	 	Mortgage
Segment
	 	 	Corporate
Segment
	 	
Balance at September 30, 2004	  	$	5,081	 	 	$	4,230	 	 	$	739	 	 	$	106	 	 	$	6	 	
Costs Deferred	  	 	295	 	 	 	222	 	 	 	52	 	 	 	14	 	 	 	7	 	
Amortization, net	  	 	(237	)	 	 	(188	)	 	 	(29	)	 	 	(12	)	 	 	(8	)	
Impact of foreign currency translation	  	 	67	 	 	 	63	 	 	 	—  	 	 	 	4	 	 	 	—  	 	
 	  				 				 				 				 				
Unamortized balance at December 31, 2004	  	 	5,206	 	 	 	4,327	 	 	 	762	 	 	 	112	 	 	 	5	 	
Accumulated effect of net unrealized investment gains	  	 	(186	)	 	 	(16	)	 	 	(170	)	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				
Balance at December 31, 2004	  	$	5,020	 	 	$	4,311	 	 	$	592	 	 	$	112	 	 	$	5	 	

60

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Investments Summary
(Dollar amounts in millions)

 	 	December 31,
2004
	 	 	September 30,
2004
	 	 	June 30,
2004
	 	 	March 31,
2004
	 	 	December 31,
2003
	 	
 	 	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 maturities, available-for-sale:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Public	 	$	40,150	 	60	%	 	$	39,210	 	59	%	 	$	36,703	 	59	%	 	$	54,054	 	65	%	 	$	51,336	 	64	%	
Private	 	 	12,274	 	18	%	 	 	11,619	 	18	%	 	 	11,298	 	18	%	 	 	14,861	 	18	%	 	 	14,149	 	17	%	
Equity securities, available-for-sale	 	 	374	 	1	%	 	 	360	 	1	%	 	 	352	 	1	%	 	 	547	 	1	%	 	 	600	 	1	%	
Mortgage loans	 	 	6,051	 	9	%	 	 	5,877	 	9	%	 	 	5,800	 	9	%	 	 	6,124	 	7	%	 	 	6,114	 	8	%	
Policy loans	 	 	1,224	 	2	%	 	 	1,215	 	2	%	 	 	1,108	 	2	%	 	 	1,114	 	1	%	 	 	1,105	 	1	%	
Restricted investments held by securitization entities	 	 	860	 	1	%	 	 	925	 	1	%	 	 	956	 	1	%	 	 	1,018	 	1	%	 	 	1,069	 	1	%	
Cash, cash equivalents and short-term investments	 	 	2,210	 	3	%	 	 	2,667	 	4	%	 	 	2,240	 	4	%	 	 	2,465	 	3	%	 	 	2,513	 	3	%	
Other invested assets	 	 	3,996	 	6	%	 	 	4,299	 	6	%	 	 	3,558	 	6	%	 	 	3,535	 	4	%	 	 	3,789	 	5	%	
 	 	 	 			 			 			 			 			 			 			 			 			 			
Total invested assets and cash	 	$	67,139	 	100	%	 	$	66,172	 	100	%	 	$	62,015	 	100	%	 	$	83,718	 	100	%	 	$	80,675	 	100	%	

 	 	December 31,
2004
	 	 	September 30,
2004
	 	 	June 30,
2004
	 	 	March 31,
2004
	 	 	December 31,
2003
	 	
Public Fixed Maturities—Credit Quality:
	 	Estimated
Fair Value
	 	% of
Total
	 	 	Estimated
Fair Value
	 	% of
Total
	 	 	Estimated
Fair Value
	 	% of
Total
	 	 	Estimated
Fair Value
	 	% of
Total
	 	 	Estimated
Fair Value
	 	% of
Total
	 	
NAIC Designation
	 	Rating Agency
Equivalent Designation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Aaa/Aa/A	 	$	28,635	 	71	%	 	$	27,877	 	71	%	 	$	26,053	 	71	%	 	$	34,481	 	64	%	 	$	33,212	 	65	%	
2	 	Baa	 	 	9,344	 	23	%	 	 	9,320	 	24	%	 	 	8,758	 	24	%	 	 	15,770	 	29	%	 	 	14,778	 	29	%	
3	 	Ba	 	 	1,415	 	4	%	 	 	1,329	 	4	%	 	 	1,189	 	3	%	 	 	2,313	 	4	%	 	 	1,896	 	4	%	
4	 	B	 	 	651	 	2	%	 	 	567	 	1	%	 	 	571	 	2	%	 	 	1,122	 	2	%	 	 	979	 	2	%	
5	 	Caa and lower	 	 	63	 	0	%	 	 	59	 	0	%	 	 	94	 	0	%	 	 	217	 	1	%	 	 	272	 	0	%	
6	 	In or near default	 	 	15	 	0	%	 	 	21	 	0	%	 	 	21	 	0	%	 	 	79	 	0	%	 	 	104	 	0	%	
Not rated	 	Not rated	 	 	27	 	0	%	 	 	37	 	0	%	 	 	17	 	0	%	 	 	72	 	0	%	 	 	95	 	0	%	
 	 	 	 			 			 			 			 			 			 			 			 			 			
 	 	Total public fixed maturities	 	$	40,150	 	100	%	 	$	39,210	 	100	%	 	$	36,703	 	100	%	 	$	54,054	 	100	%	 	$	51,336	 	100	%	

Private Fixed Maturities—Credit Quality:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NAIC Designation
	 	Rating Agency
Equivalent Designation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Aaa/Aa/A	 	$	6,501	 	53	%	 	$	6,024	 	52	%	 	$	5,853	 	52	%	 	$	7,872	 	53	%	 	$	7,388	 	52	%	
2	 	Baa	 	 	4,768	 	39	%	 	 	4,605	 	40	%	 	 	4,476	 	40	%	 	 	5,692	 	38	%	 	 	5,442	 	38	%	
3	 	Ba	 	 	605	 	5	%	 	 	597	 	5	%	 	 	628	 	5	%	 	 	783	 	5	%	 	 	728	 	5	%	
4	 	B	 	 	202	 	2	%	 	 	191	 	2	%	 	 	123	 	1	%	 	 	210	 	2	%	 	 	228	 	2	%	
5	 	Caa and lower	 	 	103	 	1	%	 	 	106	 	1	%	 	 	101	 	1	%	 	 	138	 	1	%	 	 	177	 	1	%	
6	 	In or near default	 	 	43	 	0	%	 	 	74	 	0	%	 	 	92	 	1	%	 	 	98	 	1	%	 	 	86	 	1	%	
Not rated	 	Not rated	 	 	52	 	0	%	 	 	22	 	0	%	 	 	25	 	0	%	 	 	68	 	0	%	 	 	100	 	1	%	
 	 	 	 			 			 			 			 			 			 			 			 			 			
 	 	Total private fixed maturities	 	$	12,274	 	100	%	 	$	11,619	 	100	%	 	$	11,298	 	100	%	 	$	14,861	 	100	%	 	$	14,149	 	100	%	

61

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Fixed Maturity Summary
(Dollar amounts in millions)

 	 	December 31, 2004
	 	 	September 30, 2004
	 	 	June 30, 2004
	 	 	March 31, 2004
	 	 	December 31, 2003
	 	
 	 	Estimated
Fair Value
	 	% of Total
	 	 	Estimated
Fair Value
	 	% of Total
	 	 	Estimated
Fair Value
	 	% of Total
	 	 	Estimated
Fair Value
	 	% of Total
	 	 	Estimated
Fair Value
	 	% of Total
	 	
Fixed maturities—Security Sector: 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. government & agencies	 	$	572	 	1	%	 	$	569	 	1	%	 	$	614	 	1	%	 	$	1,189	 	2	%	 	$	1,055	 	2	%	
State and municipal	 	 	3,030	 	6	%	 	 	3,267	 	6	%	 	 	3,140	 	7	%	 	 	3,359	 	5	%	 	 	3,350	 	5	%	
Foreign government	 	 	1,744	 	3	%	 	 	1,453	 	3	%	 	 	1,462	 	3	%	 	 	1,660	 	2	%	 	 	1,551	 	2	%	
U.S. corporate	 	 	21,893	 	42	%	 	 	21,254	 	42	%	 	 	20,389	 	43	%	 	 	35,058	 	51	%	 	 	33,025	 	50	%	
Foreign corporate	 	 	6,913	 	13	%	 	 	6,550	 	13	%	 	 	5,846	 	12	%	 	 	8,773	 	13	%	 	 	7,949	 	12	%	
Mortgage-backed	 	 	8,577	 	17	%	 	 	7,969	 	16	%	 	 	6,948	 	14	%	 	 	8,421	 	12	%	 	 	7,848	 	12	%	
Public utilities	 	 	6,395	 	12	%	 	 	6,387	 	12	%	 	 	6,152	 	13	%	 	 	6,043	 	9	%	 	 	6,303	 	10	%	
Asset-backed	 	 	3,300	 	6	%	 	 	3,380	 	7	%	 	 	3,450	 	7	%	 	 	4,412	 	6	%	 	 	4,404	 	7	%	
 	 			 			 			 			 			 			 			 			 			 			
Total fixed maturities	 	$	52,424	 	100	%	 	$	50,829	 	100	%	 	$	48,001	 	100	%	 	$	68,915	 	100	%	 	$	65,485	 	100	%	
 	 			 			 			 			 			 			 			 			 			 			
Corporate Bond Holdings—Industry Sector: 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Finance and insurance	 	$	10,357	 	30	%	 	$	10,080	 	29	%	 	$	9,619	 	30	%	 	$	13,881	 	28	%	 	$	13,069	 	28	%	
Utilities and energy	 	 	7,056	 	20	%	 	 	7,061	 	21	%	 	 	6,784	 	21	%	 	 	11,238	 	22	%	 	 	10,345	 	22	%	
Consumer—non cyclical	 	 	4,351	 	12	%	 	 	4,349	 	13	%	 	 	4,213	 	13	%	 	 	6,454	 	13	%	 	 	6,036	 	13	%	
Consumer—cyclical	 	 	2,666	 	8	%	 	 	2,637	 	8	%	 	 	2,640	 	8	%	 	 	4,028	 	8	%	 	 	4,356	 	9	%	
Capital goods	 	 	2,240	 	6	%	 	 	2,284	 	7	%	 	 	2,201	 	7	%	 	 	3,327	 	7	%	 	 	2,928	 	6	%	
Industrial	 	 	2,475	 	7	%	 	 	2,506	 	7	%	 	 	2,263	 	7	%	 	 	3,333	 	7	%	 	 	3,340	 	7	%	
Technology and communications	 	 	2,223	 	6	%	 	 	2,135	 	6	%	 	 	1,996	 	6	%	 	 	3,268	 	6	%	 	 	2,972	 	6	%	
Transportation	 	 	1,063	 	3	%	 	 	1,003	 	3	%	 	 	900	 	3	%	 	 	1,953	 	4	%	 	 	1,970	 	4	%	
Other	 	 	2,770	 	8	%	 	 	2,136	 	6	%	 	 	1,771	 	5	%	 	 	2,392	 	5	%	 	 	2,258	 	5	%	
 	 			 			 			 			 			 			 			 			 			 			
Total	 	$	35,201	 	100	%	 	$	34,191	 	100	%	 	$	32,387	 	100	%	 	$	49,874	 	100	%	 	$	47,274	 	100	%	
 	 			 			 			 			 			 			 			 			 			 			
Fixed maturities—Contractual Maturity Dates: 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Due in one year or less	 	$	2,040	 	4	%	 	$	1,712	 	3	%	 	$	1,297	 	3	%	 	$	1,636	 	2	%	 	$	1,761	 	3	%	
Due after one year through five years	 	 	10,749	 	20	%	 	 	10,660	 	21	%	 	 	10,952	 	23	%	 	 	12,112	 	18	%	 	 	11,817	 	18	%	
Due after five years through ten years	 	 	11,842	 	23	%	 	 	11,663	 	23	%	 	 	10,924	 	22	%	 	 	14,725	 	21	%	 	 	13,901	 	21	%	
Due after ten years	 	 	15,916	 	30	%	 	 	15,445	 	31	%	 	 	14,430	 	30	%	 	 	27,609	 	40	%	 	 	25,754	 	39	%	
 	 			 			 			 			 			 			 			 			 			 			
Subtotal	 	 	40,547	 	77	%	 	 	39,480	 	78	%	 	 	37,603	 	78	%	 	 	56,082	 	81	%	 	 	53,233	 	81	%	
Mortgage-backed and asset backed	 	 	11,877	 	23	%	 	 	11,349	 	22	%	 	 	10,398	 	22	%	 	 	12,833	 	19	%	 	 	12,252	 	19	%	
 	 			 			 			 			 			 			 			 			 			 			
Total fixed maturities	 	$	52,424	 	100	%	 	$	50,829	 	100	%	 	$	48,001	 	100	%	 	$	68,915	 	100	%	 	$	65,485	 	100	%	

62

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Commercial Mortgage Loan Data
(Dollar amounts in millions)

 	 	December 31, 2004
	 	 	September 30, 2004
	 	 	June 30, 2004
	 	 	March 31, 2004
	 	 	December 31, 2003
	 	
Summary of Commercial
Mortgage Loans
	 	Carrying
Amount
	 	 	% of Total
	 	 	Carrying
Amount
	 	% of Total
	 	 	Carrying
Amount
	 	% of Total
	 	 	Carrying
Amount
	 	% of Total
	 	 	Carrying
Amount
	 	% of Total
	 	
Geographic Region	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pacific	 	$	1,796	 	 	 	30	%	 	$	1,761	 	30	%	 	$	1,707	 	29	%	 	$	1,821	 	29	%	 	$	1,867	 	31	%	
South Atlantic	 	 	1,239	 	 	 	20	%	 	 	1,196	 	20	%	 	 	1,208	 	21	%	 	 	1,216	 	20	%	 	 	1,194	 	20	%	
Middle Atlantic	 	 	953	 	 	 	16	%	 	 	887	 	15	%	 	 	857	 	15	%	 	 	923	 	15	%	 	 	932	 	15	%	
East North Central	 	 	682	 	 	 	11	%	 	 	681	 	12	%	 	 	706	 	12	%	 	 	789	 	13	%	 	 	771	 	12	%	
Mountain	 	 	463	 	 	 	8	%	 	 	457	 	8	%	 	 	439	 	8	%	 	 	479	 	8	%	 	 	478	 	8	%	
West South Central	 	 	306	 	 	 	5	%	 	 	275	 	5	%	 	 	303	 	5	%	 	 	292	 	5	%	 	 	288	 	5	%	
West North Central	 	 	252	 	 	 	4	%	 	 	261	 	4	%	 	 	246	 	4	%	 	 	261	 	4	%	 	 	271	 	4	%	
East South Central	 	 	225	 	 	 	4	%	 	 	227	 	4	%	 	 	225	 	4	%	 	 	235	 	4	%	 	 	226	 	4	%	
New England	 	 	135	 	 	 	2	%	 	 	132	 	2	%	 	 	109	 	2	%	 	 	108	 	2	%	 	 	87	 	1	%	
 	 				 				 			 			 			 			 			 			 			 			
Total	 	$	6,051	 	 	 	100	%	 	$	5,877	 	100	%	 	$	5,800	 	100	%	 	$	6,124	 	100	%	 	$	6,114	 	100	%	
 	 				 				 			 			 			 			 			 			 			 			
Property Type	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Office	 	$	1,822	 	 	 	30	%	 	$	1,774	 	30	%	 	$	1,826	 	32	%	 	$	1,985	 	32	%	 	$	2,024	 	33	%	
Industrial	 	 	1,797	 	 	 	30	%	 	 	1,768	 	30	%	 	 	1,697	 	29	%	 	 	1,814	 	30	%	 	 	1,812	 	30	%	
Retail	 	 	1,574	 	 	 	26	%	 	 	1,519	 	26	%	 	 	1,507	 	26	%	 	 	1,508	 	25	%	 	 	1,500	 	25	%	
Apartments	 	 	650	 	 	 	11	%	 	 	612	 	10	%	 	 	575	 	10	%	 	 	589	 	10	%	 	 	573	 	9	%	
Mixed use/other	 	 	208	 	 	 	3	%	 	 	204	 	4	%	 	 	195	 	3	%	 	 	228	 	3	%	 	 	205	 	3	%	
 	 				 				 			 			 			 			 			 			 			 			
Total	 	$	6,051	 	 	 	100	%	 	$	5,877	 	100	%	 	$	5,800	 	100	%	 	$	6,124	 	100	%	 	$	6,114	 	100	%	

 	 	Principal
Balance
	 	 	% of Total
	 	 	Principal
Balance
	 	% of Total
	 	 	Principal
Balance
	 	% of Total
	 	 	Principal
Balance
	 	% of Total
	 	 	Principal
Balance
	 	% of Total
	 	
Loan Size	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Under $5 million	 	$	3,073	 	 	 	50	%	 	$	3,053	 	52	%	 	$	3,008	 	52	%	 	$	3,208	 	52	%	 	$	3,153	 	51	%	
$5 million but less than $10 million	 	 	1,442	 	 	 	24	%	 	 	1,378	 	23	%	 	 	1,312	 	22	%	 	 	1,352	 	22	%	 	 	1,394	 	23	%	
$10 million but less than $20 million	 	 	1,009	 	 	 	17	%	 	 	965	 	16	%	 	 	970	 	17	%	 	 	959	 	15	%	 	 	948	 	15	%	
$20 million but less than $30 million	 	 	334	 	 	 	5	%	 	 	287	 	5	%	 	 	314	 	5	%	 	 	358	 	6	%	 	 	309	 	5	%	
$30 million and over	 	 	237	 	 	 	4	%	 	 	238	 	4	%	 	 	241	 	4	%	 	 	296	 	5	%	 	 	358	 	6	%	
 	 				 				 			 			 			 			 			 			 			 			
Total	 	$	6,095	 	 	 	100	%	 	$	5,921	 	100	%	 	$	5,845	 	100	%	 	$	6,173	 	100	%	 	$	6,162	 	100	%	

 	 	12/31/04
	 	 	12/31/03
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Losses on Mortgage Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of year	 	$	50	 	 	$	45	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additions	 	 	7	 	 	 	8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deductions for write-downs and dispositions	 	 	(5	)	 	 	(3	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 				 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance, end of year	 	$	52	 	 	$	50	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

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GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Historical Segment Sales
(Dollar amounts in millions)

 	  	2004
	  	2003
	
 	  	Q4
	  	Q3
	  	Q2
	  	Q1
	  	Total
	  	Q4
	  	Q3
	  	Q2
	  	Q1
	  	Total
	
Protection Segment 1	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
											
Annualized first-year premiums 4 :	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
											
Term life	  	$	27	  	$	26	  	$	23	  	$	26	  	$	102	  	$	19	  	$	24	  	$	31	  	$	32	  	$	106	
Financial Intermediaries	  	 	2	  	 	2	  	 	1	  	 	2	  	 	7	  	 	1	  	 	2	  	 	2	  	 	2	  	 	7	
Independent Producers	  	 	25	  	 	24	  	 	22	  	 	24	  	 	95	  	 	17	  	 	21	  	 	28	  	 	29	  	 	95	
Dedicated Sales Specialists	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	1	  	 	1	  	 	1	  	 	1	  	 	4	
											
Universal life	  	 	12	  	 	10	  	 	9	  	 	11	  	 	42	  	 	12	  	 	15	  	 	17	  	 	14	  	 	58	
Financial Intermediaries	  	 	—  	  	 	—  	  	 	—  	  	 	1	  	 	1	  	 	1	  	 	1	  	 	1	  	 	1	  	 	4	
Independent Producers	  	 	12	  	 	10	  	 	9	  	 	9	  	 	40	  	 	10	  	 	13	  	 	15	  	 	11	  	 	49	
Dedicated Sales Specialists	  	 	—  	  	 	—  	  	 	—  	  	 	1	  	 	1	  	 	1	  	 	1	  	 	1	  	 	2	  	 	5	
											
Long term care	  	 	41	  	 	39	  	 	41	  	 	41	  	 	162	  	 	54	  	 	62	  	 	62	  	 	62	  	 	240	
Financial Intermediaries	  	 	11	  	 	10	  	 	10	  	 	10	  	 	41	  	 	14	  	 	15	  	 	13	  	 	11	  	 	53	
Independent Producers	  	 	12	  	 	12	  	 	12	  	 	11	  	 	47	  	 	13	  	 	14	  	 	12	  	 	9	  	 	48	
Dedicated Sales Specialists	  	 	18	  	 	17	  	 	19	  	 	20	  	 	74	  	 	27	  	 	33	  	 	37	  	 	42	  	 	139	
											
Group	  	 	66	  	 	39	  	 	40	  	 	26	  	 	171	  	 	57	  	 	32	  	 	34	  	 	21	  	 	144	
Independent Producers	  	 	66	  	 	39	  	 	40	  	 	26	  	 	171	  	 	57	  	 	32	  	 	34	  	 	21	  	 	144	
 	  			  			  			  			  			  			  			  			  			  			
Total annualized first-year premiums 4	  	 	146	  	 	114	  	 	113	  	 	104	  	 	477	  	 	142	  	 	133	  	 	144	  	 	129	  	 	548	
											
Written premiums 4 :	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Payment protection	  	 	351	  	 	397	  	 	402	  	 	351	  	 	1,501	  	 	498	  	 	648	  	 	523	  	 	506	  	 	2,175	
Financial Intermediaries	  	 	351	  	 	397	  	 	402	  	 	351	  	 	1,501	  	 	498	  	 	648	  	 	523	  	 	506	  	 	2,175	
 	  			  			  			  			  			  			  			  			  			  			
Total protection segment 1	  	$	497	  	$	511	  	$	515	  	$	455	  	$	1,978	  	$	640	  	$	781	  	$	667	  	$	635	  	$	2,723	

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GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT

 	 	2004
	 	2003
	
 	 	Q4
	 	Q3
	 	Q2
	 	Q1
	 	Total
	 	Q4
	 	Q3
	 	Q2
	 	Q1
	 	Total
	
Retirement Income and Investments (RI&I) Segment 2  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
											
Spread based retail Structured settlements 5	 	$	104	 	$	89	 	$	192	 	$	150	 	$	535	 	$	142	 	$	117	 	$	115	 	$	134	 	$	508	
											
Income annuities	 	 	212	 	 	187	 	 	164	 	 	201	 	 	764	 	 	229	 	 	177	 	 	177	 	 	137	 	 	720	
Financial Intermediaries	 	 	127	 	 	115	 	 	98	 	 	119	 	 	459	 	 	124	 	 	113	 	 	110	 	 	86	 	 	433	
Independent Producers	 	 	79	 	 	68	 	 	63	 	 	78	 	 	288	 	 	98	 	 	60	 	 	63	 	 	48	 	 	269	
Dedicated Sales Specialists	 	 	6	 	 	4	 	 	3	 	 	4	 	 	17	 	 	7	 	 	4	 	 	4	 	 	3	 	 	18	
											
Fixed annuities	 	 	283	 	 	653	 	 	372	 	 	411	 	 	1,719	 	 	304	 	 	289	 	 	133	 	 	302	 	 	1,028	
Financial Intermediaries	 	 	276	 	 	641	 	 	360	 	 	400	 	 	1,677	 	 	284	 	 	271	 	 	108	 	 	265	 	 	928	
Independent Producers	 	 	4	 	 	6	 	 	9	 	 	6	 	 	25	 	 	6	 	 	6	 	 	8	 	 	16	 	 	36	
Dedicated Sales Specialists	 	 	3	 	 	6	 	 	3	 	 	5	 	 	17	 	 	14	 	 	12	 	 	17	 	 	21	 	 	64	
 	 			 			 			 			 			 			 			 			 			 			
Total spread based retail	 	 	599	 	 	929	 	 	728	 	 	762	 	 	3,018	 	 	675	 	 	583	 	 	425	 	 	573	 	 	2,256	
											
Fee based	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Variable annuities	 	 	256	 	 	250	 	 	277	 	 	292	 	 	1,075	 	 	375	 	 	613	 	 	629	 	 	430	 	 	2,047	
Financial Intermediaries	 	 	236	 	 	232	 	 	257	 	 	277	 	 	1,002	 	 	344	 	 	581	 	 	591	 	 	402	 	 	1,918	
Independent Producers	 	 	8	 	 	5	 	 	13	 	 	7	 	 	33	 	 	13	 	 	8	 	 	15	 	 	6	 	 	42	
Dedicated Sales Specialists	 	 	12	 	 	13	 	 	7	 	 	8	 	 	40	 	 	18	 	 	24	 	 	23	 	 	22	 	 	87	
											
Variable life	 	 	4	 	 	4	 	 	5	 	 	5	 	 	18	 	 	6	 	 	6	 	 	6	 	 	6	 	 	24	
Financial Intermediaries	 	 	3	 	 	3	 	 	4	 	 	4	 	 	14	 	 	5	 	 	4	 	 	3	 	 	3	 	 	15	
Independent Producers	 	 	1	 	 	1	 	 	1	 	 	—  	 	 	3	 	 	—  	 	 	1	 	 	1	 	 	1	 	 	3	
Dedicated Sales Specialists	 	 	—  	 	 	—  	 	 	—  	 	 	1	 	 	1	 	 	1	 	 	1	 	 	2	 	 	2	 	 	6	
											
Managed assets	 	 	301	 	 	267	 	 	271	 	 	304	 	 	1,143	 	 	297	 	 	272	 	 	282	 	 	158	 	 	1,009	
Independent Producers	 	 	161	 	 	139	 	 	159	 	 	183	 	 	642	 	 	188	 	 	185	 	 	209	 	 	140	 	 	722	
Dedicated Sales Specialists	 	 	140	 	 	128	 	 	112	 	 	121	 	 	501	 	 	109	 	 	87	 	 	73	 	 	18	 	 	287	
 	 			 			 			 			 			 			 			 			 			 			
Total fee based	 	 	561	 	 	521	 	 	553	 	 	601	 	 	2,236	 	 	678	 	 	891	 	 	917	 	 	594	 	 	3,080	
											
Spread based institutional	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Guaranteed investment contracts (GICs) 5	 	 	96	 	 	80	 	 	111	 	 	74	 	 	361	 	 	66	 	 	234	 	 	159	 	 	194	 	 	653	
Funding agreements backing notes 5	 	 	600	 	 	500	 	 	210	 	 	180	 	 	1,490	 	 	460	 	 	—  	 	 	474	 	 	200	 	 	1,134	
Funding agreements 5	 	 	100	 	 	—  	 	 	100	 	 	100	 	 	300	 	 	—  	 	 	100	 	 	25	 	 	—  	 	 	125	
 	 			 			 			 			 			 			 			 			 			 			
Total spread based institutional	 	 	796	 	 	580	 	 	421	 	 	354	 	 	2,151	 	 	526	 	 	334	 	 	658	 	 	394	 	 	1,912	
 	 			 			 			 			 			 			 			 			 			 			
Total RI&I segment 2	 	$	1,956	 	$	2,030	 	$	1,702	 	$	1,717	 	$	7,405	 	$	1,879	 	$	1,808	 	$	2,000	 	$	1,561	 	$	7,248	
 	 			 			 			 			 			 			 			 			 			 			
Mortgage Insurance Segment 3 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
New insurance written:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. mortgage insurance	 	$	7,074	 	$	6,206	 	$	8,055	 	$	6,798	 	$	28,133	 	$	18,087	 	$	17,207	 	$	17,664	 	$	14,530	 	$	67,488	
International mortgage insurance	 	 	15,225	 	 	13,163	 	 	12,545	 	 	10,905	 	 	51,838	 	 	12,210	 	 	13,026	 	 	7,670	 	 	6,254	 	 	39,160	
 	 			 			 			 			 			 			 			 			 			 			
Total mortgage insurance segment 3	 	$	22,299	 	$	19,369	 	$	20,600	 	$	17,703	 	$	79,971	 	$	30,297	 	$	30,233	 	$	25,334	 	$	20,784	 	$	106,648	

1	In our Protection segment, sales from our life, LTC and group life and health insurance businesses represent annualized first-year premiums. Sales from our universal life primarily represents deposits. Sales from our payment protection insurance business represent gross written premiums.	
2	In our Retirement Income and Investments segment sales from our spread based and variable products represent new premiums/deposits received. Sales for our managed assets represent new deposits.	
3	In our Mortgage Insurance segment, all sales represent new insurance written. New insurance written represents the original principal balance of mortgages covered by newly issued primary mortgage insurance during the specified period.	
4	Annualized first-year premiums are calculated as if they are consistently paid for the full period of the sale even if they were actually paid for only a portion of such period. Written premiums represent total premiums gross of reinsurance and cancellations during the specified. Deposits represent additional investments in investment products during the specified period.	
5	All Structured Settlements and institutional products are sold by independent producers	
 
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CORPORATE INFORMATION
 
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GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Industry Ratings
 
Our principal life insurance subsidiaries are rated by A.M. Best, S&P, Moody’s and Fitch as follows:

Company
	  	A.M. Best rating
	  	S&P rating
	  	Moody’s rating
	  	Fitch rating
	
American Mayflower Life Insurance Company of
New York	  	A+	  	AA-	  	Aa3	  	AA-	
					
Federal Home Life Insurance Company	  	A+	  	Not rated	  	Aa3	  	AA-	
					
First Colony Life Insurance Company	  	A+	  	AA-	  	Aa3	  	AA-	
					
GE Capital Life Assurance Company of NY	  	A+	  	AA-	  	Aa3	  	AA-	
					
GE Life and Annuity Assurance Company	  	A+	  	AA-	  	Aa3	  	AA-	
					
GE Group Life Assurance Company	  	A	  	AA-	  	Not rated	  	Not rated	
					
General Electric Capital Assurance Company	  	A+	  	AA-	  	Aa3	  	AA-	
 
Our mortgage insurance subsidiaries are rated by S&P, Moody’s and Fitch as follows:

Company(1)
	  	S&P rating
	  	Moody’s rating
	  	Fitch rating
	
General Electric Mortgage Insurance Corporation	  	AA	  	Aa2	  	AA	
				
GE Mortgage Insurance Company Pty. Limited	  	AA	  	Aa2	  	AA	
				
GE Mortgage Insurance Limited	  	AA	  	Aa2	  	AA	
				
GE Residential Mortgage Insurance Corporation of NC	  	AA	  	Aa2	  	AA	

(1)	Our Canadian mortgage insurance company is not rated by any of the rating agencies shown above.	
 
The A.M. Best, S&P, Moody’s and Fitch ratings 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 our securities.
 
A.M. Best states that its ‘‘A+’’ (Superior) rating is assigned to those companies that have, in its opinion, a superior ability to meet their ongoing obligations to policyholders. The ‘‘A+’’ (Superior) rating is the second-highest of fifteen ratings assigned by A.M. Best, which range from ‘‘A++’’ to ‘‘S’’.
 
S&P states that an insurer rated ‘‘AA’’ (Very Strong) has very strong financial security characteristics that outweigh any vulnerabilities, and is highly likely to have the ability to meet financial commitments. The ‘‘AA’’ range is the second-highest of the four ratings ranges that meet these criteria, and also is the second-highest of nine financial strength rating ranges assigned by S&P, which range from ‘‘AAA’’ to ‘‘R.’’ A plus (+) or minus (-) shows relative standing in a rating category. Accordingly, the ‘‘AA’’ and ‘‘AA-’’ ratings are the third- and fourth-highest of S&P’s 20 ratings categories.
 
Moody’s states that insurance companies rated ‘‘Aa’’ (Excellent) offer excellent financial security. Moody’s states that companies in this group constitute what are generally known as high-grade companies. The ‘‘Aa’’ range is the second-highest 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. Accordingly, the ‘‘Aa2’’ and ‘‘Aa3’’ ratings are the third- and fourth-highest of Moody’s 21 ratings categories.
 
68

GENWORTH FINANCIAL
4Q 2004 FINANCIAL SUPPLEMENT
 
Fitch states that ‘‘AA’’ (Very Strong) rated insurance companies are viewed as possessing very strong capacity to meet policyholder and contract obligations. Risk factors are modest, and the impact of any adverse business and economic factors is expected to be very small. The ‘‘AA’’ rating category is the second-highest of eight financial strength rating categories, which range from ‘‘AAA’’ to ‘‘D.’’ 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 ‘‘CCC’’ category. Accordingly, the ‘‘AA’’ and ‘‘AA-’’ ratings are the third- and fourth-highest of Fitch’s 22 ratings categories.
 
A.M. Best, S&P, Moody’s and Fitch review their ratings periodically and we cannot assure you that we will maintain our current ratings in the future. Other agencies may also rate our company or our insurance subsidiaries on a solicited or an unsolicited basis.
 
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
 
69